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) K. Long -Term Obligations In the. enfity-wide financial statements; longterm debt and other long-term obligations are reported as liabilities in. the applicable. govern mental activities. Bond premiums and discounts are deferred and amortized over the fife of the bonds using the straight-line method. Bond.issue Costs, are expnesed as a Current period Cost with the adoption of Governmental Accounting, Standards Board Statement No..65. In the. governmental fund financial. statements, bond premiums and discounts, as well as. bond. issue costs are recognized during the current period.. The face amount of the debt issue is. reported. as on other financing source. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issue costs are reported as debt service expenditures.. L. Net Position/Fund Balance Net position represents. the difference.between assets and liabilities in. the government - wide and proprietary fund financial statements, Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. Net position is reported as restricted when there are limitations imposed. on their use through external restrictions imposed by creditors; grantors, or laws or regulations of other governments. In they fund financial statements, governmental funds report fund balances in the. classifications that disclose constraints for which amounts in those funds can be.. spent.. These classifications are as follows: Nonspendable --portion of fund balances related to prepaid items, inventories,. long- term receivables, and corpus on any permanent fund:. Restricted _ funds are constrained from outside parties {statute,. grantors, bond agreements, etc.). Committed — funds are established and:modified by a resolution approved by the. City Council. Assigned — consists of internally imposed constraints approved by the City Finance Director. Unassigned — is the residual classification for the General Fund and :also reflects the negative residual amounts in other funds. When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available; it is the City's policy to use restricted first, then unrestricted fund balance. When an expenditure is incurred for purposes for which committed, assigned and unassigned amounts are available; it is the City's policy to use committed .first, then assigned, and finally unassigned amounts. (22)