2012-04-11 CC Packet - Laserfiche WebLink

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CITY OF CENTERV I L L E, MINNESOTA NOTESTOTHE FINANCIAL STATEMENTS DECEMBER 31, 2011 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES- CONTINUED D. Assets, liabilities and net assets or equity Deposits and investments The City's cash and cash equi valents are considered to be cash on hand, demand deposits and short-term i nvestments with origi nal maturities of three months or less from the date of acquisition. Cash ball ancesfrom all funds are pooled and invested, to the extent available, in certificates of deposit and other authorized investments. Earningsfrom such investments are allocated on the basis of applicable participation by each of the funds. The City may also i nvest idle funds as authorized by M i nnesota statutes, as fol lows: 1. Direct obl i gati ons or obl i gati ons guaranteed by the United States or itsagencies. 2. Shares of i nvestment companies registered under the Federal I nvestment Company Act of 1940 and recei ved the highest credit rating, rated in one of the two highest rating categories by astatistical rating agency, and have a fi nal maturity of thi rteen months or less. 3. General obligations of a state or local government with taxing powers rated "A" or better; revenue obligations rated "AA" or better. 4. General obligations of the Minnesota Housing Finance Agency rated "A" or better. 5. Bankers' acceptances of United States banks eligible for purchase by the Federal Reserve System. 6. Commercial paper issued by United States banks corporations or their Canadian subsidiaries, of highest quality category by at least two nationally recognized rating agencies, and maturing in 270 days or less. 7. Repurchase or reverse repurchase agreements and securities lendi ng agreements with fi nancial institutions qualified as a "depository" by the government entity, with banks that are members of the Federal Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S. government securities to the Federal Reserve Bank of New York, or certain Minnesota securities broker - dealers. 8. Guaranteed investment contracts (GI C's) issued or guaranteed by a United States commercial bank, adomestic branch of a foreign bank, a United States insurance company, or its Canadian subsidiary, whose similar debt obligations were rated in one of the top two rating categories by a nationally recognized rating agency. Accounts receivable Accounts receivable include amounts billed for services provided before year end. UnbiIled utility enterprise fund recei vables are also included for services provided in 2011. The City annually certif ies del i nquent water and sewer accounts to the County for collection in the following year. Therefore, there has been no allowance for doubtful accounts establ i shed. I nterfund receivables and payables Activity between funds that are representati ve of lending /borrowing arrangements outstand i ng at the end of the fiscal year are referred to as either "due to /from other funds" (i.e., the current portion of i nterfund loans) or "advances to /from other funds' (i.e., the non - current portion of interfund loans). All other outstanding balances between funds are reported as "due to /from other funds." Any residual bad ances outstandi ng between the governmental activities and busi ness -type acti vi ti es are reported i n the government-wi de f i nanci al statements as "internal balances." -52-