Laserfiche WebLink
<br />CITY OF ARDEN HILLS, MINNESOTA <br />NOTES TO THE FINANCIAL STATEMENTS <br />DECEMBER 3 I <br /> <br />Note 1: <br /> <br />'UM::::gGNMCMCC AGroUNTINGroUTn-CONTffln :'E. T <br /> <br /> <br />In the fund fmancra] statements, governmental funds repdrt rvanoA-~ fil omLt"If not <br />available for appropriation or are legally restricted by ou!ide parties for use for a specific purpose. Desi~tions of <br />fund balance represent tentative management plans that abbj~~,. i <br /> <br />. <br /> <br />Comparative DatalReclassifications <br /> <br />Comparative total data for the prior year have been presented only for the individual enterprise funds in the fund <br />financial statements in order to provide an understanding of the changes in the financial position and operations of <br />these funds. Also, certain amounts presented in the prior year have been reclassified in order to be consistent with <br />the current year's presentation. <br /> <br />Note 2: STEWARDSIDP, COMPLIANCE AND ACCOUNTABILITY <br /> <br />A. Budgetary Informatioo <br /> <br />Annual budgets are adopted on a basis consistent with accounting principles generally accepted in the United States <br />of America for the General, special revenue and Debt Service funds. The capital projects funds adopt project length <br />budgets. All annual appropriations lapse at fiscal year end. The City does not use encumbrance accounting. <br /> <br />In August of each year, all departments of the City submit requests for appropriations to the City Administrator so <br />that a budget may be prepared. Before September 15ili, the proposed budget is presented to the Council for review. <br />The Council holds public hearings and a final budget is prepared and adopted in December. <br /> <br />The appropriated budget is prepared by fund, function and department. The City's department heads, with the <br />approval of the City Administrator, may make transfers of appropriations within a department. Transfers of <br />appropriations between departments require the approval of the Council. The legal level of budgetary control is the <br />fund level. Budgeted amounts are as amended by the Council. <br /> <br />. <br /> <br />B. Excess of expenditures over appropriations <br /> <br />For the year ended December 31, 2005, expenditures exceeded appropriations in the Economic Development <br />Authority fund (the legal level of budgetary control) by $34,576. These overexpenditures were funded by greater <br />than anticipated revenues and other financing sources. <br /> <br />Note 3: DETAILED NOTES ON ALL HiNDS <br /> <br />A. Deposits and Investments <br /> <br />Custodial credit risk for deposits and investments is the risk that in the event of a bank failure, the City's deposits <br />and investments may not be returned or the City \ViII not be able to recover collateral securities in the possession of <br />an outside party. <br /> <br />The Minnesota Municipal Money Market Fund (the 4M Fund) is a customized cash management and investment <br />prograro for Minnesota public funds. Sponsored and governed by the League of Minnesota Cities since 1987, the <br />4M Fund is a unique investment alternative designed to address the daily and long term investment needs of <br />Minnesota cities and other municipal entities. Allowable under Minnesota statutes, the 4M Fund is comprised of top <br />quality, rated investments. <br /> <br />. <br /> <br />-29- <br />