2015 06-15 CC PACKET - Laserfiche WebLink

Home

CITY OF GEM LAKE, MINNESOTA NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2014 NOTE 1 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 -terra 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 1nvestments authorized by Minnesota Statutes. Earnings from investments are allocated to individual funds on the basis of the fund's equity in the cash and investment pool. The City provides temporary advances to funds that have insufficient cash balances by means of. an advance from another fund shown as interfund receivables in: the advancing fund in the governmental fund financial statements, and an interfund payable in the fund: with the deficit, until adequate resources are. received. These inter fund payables are eliminated for statement of net position presentation.