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CITY OF GEM LAKE, MINNESOTA <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />DECEMBER 31, 2018 <br /> <br /> <br /> <br />(27) <br /> <br />NOTE 6 INTERFUND BALANCES AND ACTIVITIES <br />Due To/From Other Funds <br />Individual fund receivable and payable balances at December 31, 2018 are as follows: <br /> <br />Interfund Interfund <br />Receivable Payable <br />Governmental Activity: <br />Hoffman Road Fund -$ 317,094$ <br />Business-Type Activity: <br />Sewer Fund 334,528 - <br />Water Fund - 17,434 <br />Total 334,528$ 334,528$ <br /> <br />Interfund receivable and payable balances represent the elimination of negative cash <br />between funds. <br /> <br />Interfund Transfers <br />Individual fund transfers at December 31, 2018 are as follows: <br /> <br />Transfer Transfer <br />In Out <br />Governmental Activity: <br />General Fund -$ 20,000$ <br />Street Improvement Fund 81,024 - <br />Other Governmental Funds - 61,024 <br />Business-Type Activity: <br />Water Fund 405,805 17,434 <br />486,829$ 81,024$ <br /> <br />During 2018, the City made routine interfund transfers for various reasons including some <br />fund balances exceeding the City’s fund balance policies and to close-out funds. The <br />transfer in to the Water Fund of $405,805 is the transfer of a water main from the <br />governmental activities to the business-type activities as the Water Fund was newly <br />established in 2018. <br /> <br />NOTE 7 RISK MANAGEMENT <br />The City is exposed to various risks of loss related to torts; theft of, damage to and <br />destruction of assets; errors and omissions; injuries to employees; and natural disasters. <br />The City carries commercial insurance for all risks of loss, including disability and employee <br />health insurance. <br /> <br />There were no significant reductions in insurance from the previous year or settlements in <br />excess of insurance coverage for any of the past three fiscal years. <br /> <br />