Laserfiche WebLink
<br />-23- <br />NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br /> <br />N. Budgets and Budgetary Accounting <br /> <br />Budget amounts are presented on the modified accrual basis of accounting. Each fall, the City Council <br />adopts a General Fund budget for the following fiscal year beginning January 1. The City has established <br />budgetary control at the fund level. Budget appropriations lapse at year-end. <br /> <br />O. Risk Management <br /> <br />The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; <br />errors and omissions; injuries to employees; and natural disasters. The City continues to carry commercial <br />insurance for all risks of loss, including disability and employee health insurance. Settled claims resulting <br />from these risks have not exceeded insurance coverage in any of the past three fisc al years. There were no <br />significant reductions in insurance coverage in the current year. <br /> <br />P. Use of Estimates <br /> <br />The preparation of financial statements, in accordance with accounting principles generally accepted in <br />the United States of America, requires management to make estimates and assumptions that affect <br />amounts reported in the financial statements during the reporting period . Actual results could differ from <br />such estimates. <br /> <br />Q. Interfund Receivables and Payables <br /> <br />In the fund financial statements, activity between funds that is representative of lending or borrowing <br />arrangements is reported as either “due to/from other funds” (current portion) or “advances to/from other <br />funds.” All other outstanding balances between funds are reported as “due to/from other funds.” Any <br />residual balances outstanding between the governmental activities and business-type activities are <br />reported in the government-wide financial statements as “internal balances.”