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CITY OF ROSEVILLE MINVESOTA <br />NOTES TO THE FINANCIAL STATEMENTS ' <br />DECEMBER 31, 1978 ' <br />Note 1- Summary of Significant Accounting Policies ,, • , <br />� <br />���,�= <br />TF.e accounting policies of the City of Roseville conform to generally accepted �' t <br />accounting principles. The following is a summary of the significant policies. �i�{ (��� <br />Basis of accounting - The accrual basis of accounting followed (with minor ` ' <br />exoeptions) by all funds other than the General Fund, special revenue funds and <br />General Deht Service Fund. Financial statements of the General Fund, special revenue <br />funds and General Debt Service Fund are presented on the modified accrual basis of ' <br />accounting. Under the modified accrual basis of accounting: <br />Revenues are recognized at the time cash is, or normally should be, <br />received or when susceptible to accrual (measurable and available), <br />although not received in cash. <br />ExpendiCures are recognized when a liability is incurred, except for <br />interest on long-term debt which is recognized when due. <br />Funds maintained on the modified accrual basis record the following transactions <br />as described below: <br />(a) General property taxes - Revenue is recognized in the year of <br />anticipated collection; allowances are provided for the full <br />amount of delinquent taxes receivable, which has the effect of <br />recognizing most general property taxes as revenue when cash is <br />received because of the uncertainty of collection; <br />(b) Interest revenue on special assessments receivable - Interest <br />� revenue is recognized in the year of anticipated collection of <br />the current principai installment; <br />(c) Interest expense on general bonded indebtedness and special <br />assessment bonds - Interest expense is recorded as an expenditure <br />when paid; interest is not accrued unless fully matured and not <br />paid; <br />(d} Bond and interest payments due .Tanuary 1- Expenditures are <br />recognized when amounts are remitted to the paying agent (usually <br />in December) for payment of bonds and interest. <br />Investments - Investments are stated at cost, which approximates market. <br />Inventories - Inventories held by the proprietary funds are stated at cost, which is <br />lower than market on the first-in, first-out basis. The only other items of <br />inventory would be a small quantity of supplies which were expensed when purchased. <br />67 <br />