Laserfiche WebLink
CITY OF GEM LAKE, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2016 <br />NOTE 1 SUMMARY OF SIGNIFICANT. ACCOUNTING P4!_ICIEIS (CONTINUED) <br />B. Basic Financial Statements (Continued) <br />1. Government -Wide Statements (Continued) <br />In the government -wide statement of net position, both the governmental and <br />business -type activities columns: .(a) are presented on a consolidated basis by <br />column;. and (b) are reported on a full accrual, economic resource basis, which <br />recognizes all long-term assets and receivables as well as long-term debt and. <br />obligations. The City's net position is reported in three parts: (1) net investment in <br />capital assets; (2) restricted net position; and (3) unrestricted net position. The City <br />first utilizes restricted resources to finance qualifying activities. <br />The statement of activities demonstrates the degree to which. the direct.expenses of <br />each function of the City's governmental activities and different business -type activity <br />are offset by program. revenues. Direct expenses are those that are clearly <br />identifiable with a specific function or activity. Program revenues include: (1) fees, <br />fines, and. charges paid. by the recipients of .goods, services,. or privileges provided <br />by a given function. or activity; and (2) grants and contributions. that are restricted to. <br />meeting the operational or capital requirements of a particular function or activity. <br />Revenues that are not. classified as program revenues, including all taxes, are <br />presented as general revenues. <br />2. Fund Financial Statements <br />The fund financial statements. provide information about the City's funds.. Separate <br />statements for each fund category, governmental and proprietary, are presented. <br />The emphasis of governmental and proprietary fund financial statements is on major <br />individual governmental and enterprise funds, with each displayed as separate <br />columns in the fund financial statements. All remaining governmental and enterprise <br />funds are aggregated and reported as nonmajor funds. <br />(14) <br />