2024 Financial Statements - Laserfiche WebLink

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) • Assigned — Consists of internaliv imposed. constraints. These constraints consist of -amounts intended to. be used by the City for .specific purposes, but do not meet the criteria to be classified as restricted or committed. In governmental funds. assigned . amounts represent intended uses established by die.goverribig--body itself or by an official.to which the governing body delegates tilt authority. • Unassigned -- The residual 0"sification for the: General Fund, which also reflects negative residual amounts in other funds: When both .restricted and unrestricted resources are available: for use, it is the City'.s. policy to first use restricted resources, then use unrestricted resources as they ate needed. When committed, assigned, or unassigned resources are available for use} it is. the City's policy to. use resources in the following order: 1) commttted,,2) assigned. and 3) anassigned. O. Budgets and BudgetatT Accounting Budget atnounks.--are presented oti the- modif red. accrual basis. of accounting. Each fall, the. City Council adopts a General.Fund budget for the. follo«-ing fiscal year be 3anuary 1. The City has established budgetary control at the fund level. Budget appropriations lapse at year-end. P. .Risk Management The City is eXposed for various risks of loss related to torts: theft of; damage to, and destruction of assets; errors and omissions: injupes-t4 employees; and natural -disasters. The City continues to carry commercial insurance for all ris.l;s ofJoss, .including disability and .employee health insurance. Settled claims resulting from these risks have not exceeded insurance coverage in any of the past three -fiscal years. There were no significant reductions in insurance coverage in the current year. Q. Use of Estimates The preparation of financial. statements, in awwrdance. with account'sng principles generally accepted in the United States of America; requires niaiiagement to make estimates and assumptions that affect aniounts reported in the financial statements during the.reporting.period. Actual results.could diffei•fro0i such estimates. R. Interfund Receivables and Pavables In the fund. financial statements, activity between. funds. that is representative of lending or borrowing arrangements is reported as either `'due to/from other*funds" (cuiretit portion} or "advances to/from other funds." All other outstanding balances between funds are reported as."due to/from other funds." Any residual balances outstanding between the .governmental activities and: business -type activities are. :reported in the government wide financial statements as."internal balances,"' -24-