Exchange revenues, such as trash fees paid to the city for trash pickup, are treated the same way. BUT, non-exchange revenues (most taxes) do not have an earning component, and so they are not the same.

Non-exchange revenues are recognized in the period they are budgeted for and collected IF the collections are within 60 days (in most cases) of the fiscal year end they belong to (again, the budget period). The 60-day period is enough time for all the taxes that will be collected to be collected. Later than 60 days, the revenues are recorded in the period they are received. We avoid estimates this way as we know what is collected and spent. The CAFR then compares this, in the fund statements, to the budgeted amounts.

Why is the budget much more important than the CAFR?

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