My WebLink
|
Help
|
About
|
Sign Out
Home
Browse
Search
CCP 05-19-2003
ArdenHills
>
Administration
>
City Council
>
City Council Packets
>
2000-2009
>
2003
>
CCP 05-19-2003
Metadata
Thumbnails
Annotations
Entry Properties
Last modified
5/8/2007 1:18:25 PM
Creation date
11/14/2006 2:35:58 PM
Metadata
Fields
Template:
General (2)
There are no annotations on this page.
Document management portal powered by Laserfiche WebLink 9 © 1998-2015
Laserfiche.
All rights reserved.
/
90
PDF
Print
Pages to print
Enter page numbers and/or page ranges separated by commas. For example, 1,3,5-12.
After downloading, print the document using a PDF reader (e.g. Adobe Reader).
View images
View plain text
<br />I <br /> <br />CITY OF ARDEN HILLS, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 3 I, 2002 <br /> <br />.- <br />I <br /> <br />Notel: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <br /> <br />A. Reporting Entity <br /> <br />The City of Arden Hills operates nnder the "Optional Plan A" form of government as defined in the State of <br />Minnesota statutes. Under this plan, the government of the City is directed by a Council composed of an elected <br />Mayor and four elected Conncil Members. The Council exercises legislative authority and detennines all matters <br />of policy. The Council appoints personnel responsible for the proper administration of all affairs relating to the <br />City. The City has considered all potential nnits for which it is financially accountable, and other organizations <br />for which the nature and significance of their relationship with the City are such that exclusion would cause the <br />City's financial statements to be misleading or incomplete. The Governmental Accounting Standards Board <br />(GASB) has set forth criteria to be considered in determining fmancial accountability. These criteria include <br />appointing a voting majority of an organization's governing body, and (1) the ability of the primary government <br />to impose its will on that organization or (2) the potential for the organization to provide specific benefits ta, or <br />impose specific financial burdens on the primary government. The City has the following component unit. <br /> <br />I <br /> <br />. <br /> <br />. <br /> <br />Blended component nnits, although legally separate entities, are, in substance, part of the City's operations and so <br />data from these units are combined witb data of the primary government. The blended component nnit has a <br />December 31 year end. <br /> <br />I <br /> <br />Blended Component Units <br /> <br />I <br /> <br />The Economic Development Authority (EDA) of the City was created pursuant to Minnesota statutes 469.090 <br />through 469.108 to carry out economic and industrial development and redevelopment consistent with policies <br />established by the Council. It is comprised of the members of the City Conncil. The EDA activities arc blended <br />and reported in a separate special revenue fund. Separate fll1ancial statements are not issued for this component <br />unit. <br /> <br />- <br /> <br />-. <br /> <br />B. Measurement Focus, Basis of Accounting and Basis of Presentation <br /> <br />The accounts of the City are organized and operated on the basis of funds and account groups. A fund is an _ <br />independent fiscal and accounting entity with a self-balancing set of acconnts. Fnnd acconnting segregates funds <br />according to their intended purpose and is used to aid management in demonstrating compliance with finance- <br />related legal and contractual provisions. The minimum number of fimds are maintained consistent with legal and I <br />managerial requirements. Account groups are a reporting device to account for certain assets and liabilities of the <br />govemmental funds not recorded directly in those funds. <br /> <br />Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is I <br />recorded on the accmal basis when the exchange takes place. On a modified accrual basis, revenue is recorded in <br />the year in which the resources are measurable and become available. <br /> <br />Non-exchange transactions, in which the City receives value without directly giving equal value in return, include I <br />property taxes, grants, entitlement and donations. On an accrual basis, revenue from property taxes is recognized <br />in the year for which the tax is levied. Revenue from grants, entitlements and donations is recognized in the year <br />in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, I <br />which specify the year when the resources are required to be used or the year when use is first permitted, <br />matching requirements, in which the City must provide local resources to be used for a specified purpose, and <br />expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a I <br />modified accrual basis, revenue from non-exchange transactions must also be available before it can be <br />recognized. <br /> <br />Deferred revenue arises when assets are recognized before revenue recognition criteria have been satisfied. <br />Grants and entitlements received before eligibility requirements are met are also recorded as deferred revenue. <br />On the modified accrual basis, receivables that will not be collected within the available period have also been <br />reported as deferred revenue. <br /> <br />.' <br />I <br /> <br />-11- <br /> <br />, <br />
The URL can be used to link to this page
Your browser does not support the video tag.