Annual_Report_1981_001 - Laserfiche WebLink

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Accowzting System and Budgetary Control (Continued) In developing and altering the City's accounting system, consideration is given to the adequacy o£ internal accounting controls. Internal accounting controls ; are designed to provide reasonable, but not absolute, assurance regarding the ' safeguarding of assets against loss from unauthorized use or disposition and ' the reliability of financial records for preparing financial statements and maintaining accowitability for assets. The concept of reasonable assurance recognizes the cost of a control shoulcl not exceed the bene[its likely to be derived and the evaluation of costs and benefits requires estimates and judg- ', ments by management. ', All internal control evalua.tions occur within the above framework. lNe believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. A budgetary system of accounts is maintained for the general and special revenue funds. Control is maintained by the use of a purchase order system ' and the continuing review of actual expenditures compared to budgeted amounts. ', Budget revisions are done upon approval of a resolution by the City Council. ', The financial statements of revenue and expenditures compared witlt the budget , in this report would reflect these revisions. Reserve for encumbrances is ' reported as part of the fund� Ualance at the end of the fiscal year. The City and Its Services The funds included in this comprehensive amival financial report are controlled by or dependent on the City of Roseville. Determination of "controlled by or dependent on" is based on criteria developed by the Federal Bureau of the Census. The criteria deai with existence as_,a_n organized_entity, governmental character, _ _. _ and substantial autonomy. Based on these criteria, the various funds and a.ccount groups, whicll are all the fund and account groups of the City shown in the table of contents, are included in this report. The City provides a full range of municipal services. This includes police, fire, parlcs and recreation, public improvements, street maintenance, sanitary sewer and water utilities, planning and general administrative services. City Financial Acti.vity Highlights During 1981 1) Moody's Investors Service assigned a bond rating of Aa-1 from Aa. 2) General Obligation Temporary Improvement Bonds of 1951 were sold at a net interest rate of 10.23%. 3) The City Council adopted a resolution which provides for Industrial Revenue Financing as permitted under Dlinnesota Statutes, Chapter 474 for industrial and commercial projects. 4) On June 14, 1981, a tornado passed through the City, causing extensive damage to private and public property. The City paid �153,978 from the Li.quor Fwid in reconstruction of property damaged by this storm. 5) The Municipal Finance Officers Association of the United States and Canada awarded a Certificate of Conformance in Financial Reporting to the City for its comprehensive amzual financial report for tlle fiscal year 1980. -�-