Statement of Cash Flows - Proprietary Funds:
The statement of cash flows categorizes OCTA's sources and uses of cash as either operating, noncapital financing, capital and related financing, and lastly, investing for all its proprietary funds. The purpose of this statement is to identify where cash comes from and how it is used. This statement is required to be presented for all proprietary funds.
Proprietary funds:
Proprietary funds report the finances of activities that OCTA operates like a business and are classified as either enterprise funds or internal service funds. OCTA uses enterprise funds to account for its transit, tollroad and taxicab administration operations. Internal service funds are used to accumulate and allocate costs internally to the departments benefiting from OCTA’s risk management activities, which include general liability and workers’ compensation. All proprietary funds are reported as business-type activities on the statement of net assets and statement of activities.
DEFINITIONS:
Condemnation deposits:
These are deposits paid to the State of California that are held for condemnation of property.
Capital assets:
Tangible and intangible property with an initial unit cost of more than $5,000 and a useful life exceeding one year.
Nondepreciable:
Capital assets that generally do not decrease in value over time. Examples include land and construction in progress.
Depreciable and amortizable:
Capital assets that decrease in value over time due to age, obsolescence or wear and tear. Examples include
buildings and improvements, machinery, equipment, furniture, transit vehicles and the toll facility franchise.
Unearned revenue:
A liability to offset assets recognized in connection with a transaction before the earning process is complete.
Derivative instruments:
Parity interest rate swaps entered into as a means to lower OCTA’s borrowing costs on variable rate debt for the 91 Express Lanes. Derivates are used by OCTA as a tool for bonafide hedging investments as stipulated in OCTA's annual investment policy.
General government:
General government is a function reported as a governmental activity on the statement of net assets and statement of activities that comprises all the activity reported in OCTA’s General Fund, Local Transportation Fund, Orange County Unified Transportation Trust (OCUTT), State Transit Assistance Fund (STAF), Gas Tax and Capital Project Funds.