VILLAGE OF GRAFTON INDEX TO NOTES TO FINANCIAL STATEMENTS As of and for the Year Ended December 31, 2016 NOTE I Summary of Significant Accounting Policies A. Reporting Entity B. Government-Wide and Fund Financial Statements C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation D. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position or Equity 1. Deposits and Investments 2. Receivables 3. Inventories and Prepaid Items 4. Restricted Assets 5. Capital Assets 6. Deferred Outflows of Resources 7. Compensated Absences 8. Long-Term Obligations/Conduit Debt 9. Deferred Inflows of Resources 10. Equity Classifications 11. Pension 12. Water and Wastewater Rates II Stewardship, Compliance, and Accountability A. Excess Expenditures and Other Financing Uses Over Appropriations B. Deficit Balances C. Limitations on the Village's Tax Levy III Detailed Notes on All Funds A. Deposits and Investments B. Receivables C. Restricted Assets D. Capital Assets E. Interfund Advances and Transfers F. Long-Term Obligations G. Lease Disclosures H. Landfill Post-Closure Liability I. Net Position/Fund Balances IV Other Information A. Employees' Retirement System B. Risk Management C. Commitments and Contingencies D. Effect of New Accounting Standards on Current-Period Financial Statements E. Joint Ventures F. Agreements with the Town of Grafton 42