2017 06-20 CC PACKET - Laserfiche WebLink

Home

CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS. DECEMBER. 31, 2016 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The financial statements of the City of Gem Lake (the City), Minnesota have been. prepared in conformity with U.S. generally accepted accounting principles as. applied to governmental units by the Governmental. Accounting Standards Board (GASB). The following is a summary of the significant.accounting policies. A. Financial Reporting Entity Asrequired by U.S. generally accepted accounting principles, the financial statements of .the. reporting entity include those. of the City of Gem'. ake and its component units. A component. unit is a legally separate entity for' which' tfe primary government is financially accountable, or for which the exclusion of the c&hob rent unit would render the financial statements of the primary. ,gove rnment misleading The criteria used to determine it the primary. government. is finlghcq ally accountable for camporient include whether or not. the primary government ''appoints the voting major'itj of the potential component unit's board, is: able to Impose its will on:fYte potential component unit; is in a .relationship of financial benefit or burden'with the potential component unit, or is fiscally depended. upon by the potential component`uriit` Based on these criteria; there are` nv: organizations; considered to be component units of the City B. Basic Financial Statements 1. Government -Vide Statements The .government--wide:=fiinancial statements .(i.e., the statement of net position and the. statement ;of activities}°'display information about the primary government. and its component units:; These statements. include the financial activities of the overall City ;government. Eliminations have been made to minimize the double -counting of interna[':activities. ' Governmental activities, which normally are supported by taxes and intergovernmental revenues; .are reported separately from business -type activities, iAich rely to a significant extent on fees and. charges to external parties for support.. (13)