2021 Financial Statements - Laserfiche WebLink

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-30- NOTE 7 – COMMITMENTS AND CONTINGENCIES A. Legal Claims The City has the usual and customary type of miscellaneous legal claims pending at year -end. Although the outcome of these lawsuits is not presently determinable, the City’s management believes that the City will not incur any material monetary loss resulting from these claims. No loss has been recorded on the City’s financial statements relating to these claims. B. Federal and State Funds Amounts recorded or receivable from federal and state agencies are subject to agency audit and adjustment. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of claims which may be disallowed by the grantor agencies cannot be determined at this time, although the City expects such amounts, if any, to be immaterial. C. Construction Commitments At December 31, 2021, the City is committed to various construction contracts for the improvement of city property. The City’s remaining commitment under these contracts is $9,643. NOTE 8 – SUBSEQUENT EVENTS A. New Accounting Standards A new standard has been issued by the GASB that will result in significant changes in the reporting of leases once it becomes effective for governmental entities. This standard will be adopted by the City beginning in 2022, and will require the restatement of certain balances reported as of December 31, 2021. The effects of this change have not yet been determined and are not reflected in these financial statements. B. COVID-19 Pandemic The COVID-19 pandemic has had significant financial and operational impacts on the City for the last two fiscal years. Any potential impacts it may have on the City’s future operations and financial condition cannot be determined at this time and has not been reflected in these financial statements.