2013 FINANCIAL STATEMENT - Laserfiche WebLink

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CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS. DECEMBER 31, 2013 NOTE 'I SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Measurement Focus and Basis of Accounting (Continued) Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues .are recognized as soon as they are both measurable and available. The City considers all. revenues to be available if they are collected within 60 days after the end of the current period. Property and other taxes, licenses, and interest are all considered to be susceptible to accrual. Expenditures are recorded when the related fund liability is incurred, except for principal and interest on general long-term debt, compensated .absences, and claims and judgments; which are. recognized as expenditures to the extent that they have matured. Proceeds of general. long-term debt and acquisitions under capital leases are. reported as other- financing sources. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenue of the. City's enterprise funds are charges to customers for sales and services. Operating expenses for enterprise funds include the cost of sales. and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting. this. definition are reported as nonoperating revenues and expenses: D. Budgets Budgets are adopted on a basis consistent with U.S. generally accepted accounting principles. An annual appropriated budget is adopted for the General Fund.. Budgeted expenditure appropriations lapse at year-end.. E. Cash and Investments Cash and investment balances from all funds are pooled and invested to the extent available in investments authorized 1?y Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis of the funds. equity to the cash and investment pool. (18)