CCP 05-13-2002 - Laserfiche WebLink

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CITY OF ARDEN HILLS, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2001 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED - Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual criteria are met. Expenditure driven grants are recognized as revenue when the qualifying expenditures have been incurred and aU other grant requirements have been met. .. . Note 1: Governmental funds include the foUowing fund types: . The general fund is the City's primary operating fund. It accounts for aU financial resources of the City, except those required to be accounted for in another fund. . The special revenue funds account for revenue sources that are legally restricted to expenditures for specified purposes (not including major capital projects). The deht service funds account for the servicing of general long-term debt not being financed by proprietary funds. . The capital projects fUnds account for the acquisition of fixed assets or construction of major capital projects not being fmanced by proprietary funds. . Proprietary funds are accounted for on the flow of economic resources measurement focus and use the accrual basis of accounting. Under this method, revenues arc recorded when earned and expenses are recorded at the time liabilities are incurred. In accordance with the provisions of the GASB Statement No. 20, Accountinl! and Financial Reoortim! for Proorietary Funds and other Governmental Entities that use Proprietary Fund ACCOlUlt, the City applies all applicable GASB pronouncements plus aU Financial Accounting Standards Board (F ASB) Statements and Interpretations, Accounting Principles Board opinions, and Accounting Research Bulletins issued on or before November 30, 1989, except for those that conflict with or contradict GASB pronouncements. The City has elected not to apply F ASB Statements and Interpretations issued after November 30, 1989. proprietary.. funds include the following fund type: _ Enterprise fUnds and used to account for those operations that are financed and operated in a matmer similar to private business or where the Council has decided that the determination of revenues earned, costs incurred I and/or net income is necessary for management accountability. - I Account Groups. The generalflXed assets account group is used to account for fixed assets not accounted for in proprietary funds. The general long-term debt account group is used to account for general long-term debt and _ certain other liabilities that are not specific liabilities of proprietary funds. Co Assets, Liabilities and Equity Deposits and Investments I The City's cash and cash equivalents are considered to be cash on hand, demand deposits and short-term investments with original maturities of three months or less from the date of acquisition. Cash balances from all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earnings from such investments are allocated on the basis of applicable participation by each ofthe funds. . State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, repurchase agreements and shares of investment companies registered under the Federal Investment Company Act of 1940 and whose only investments are obligations guaranteed by the United States or its agencies. I . Investments for the City are reported at fair value. The Mi1lllesota Municipal Money Market Fund investment pool operates in accordance with appropriate State laws and regulations. The reported value of the pool is the same as the fair value of the pool shares. .- . -12- -