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CITY OF ROSEVILLF, MINNESOTA <br />NOTES TO THE FINANCIAL STATEMEN'LS (CONTINUED) <br />DECEMBER 31, 1982 <br />Note 1- Summary of Significant Accounting Policies (Continued) <br />A <br />Fund Accounting (Continued) <br />PROPRIETARY FUNDS <br />Enterprise funds - Enterprise funds are used to account for operations <br />that are financed and operated in a manner similar to private business <br />enterprises - where the intent is that the costs (expenses, including <br />depreciation) of providing goods or services to the general public on <br />a continuing basis be financed or recovered primarily through user <br />charges. <br />Internal service funds - Internal service funds are used to account for <br />the financing of goods or services provided by one department to other <br />departments of the City. <br />FIDUCIARY FUNDS <br />Agency funds - Agency funds are used to account for the assets held by <br />the City as an agent for a governmental unit. <br />Measurement Focus <br />The accounting and reporting treatment applied to the fixed assets and <br />long-term liabilities associated with a fund are determined by its <br />measurement focus. Governmental funds and Expendable Trust funds are <br />accounted for on a spendi.ng or "financial flow" measurement focus. This <br />means that on1V current assets and current liabilities are generally <br />included on their balance sheets. Their reported fund balance is <br />considered a measure of "avai1a61e spendable resources." Governmental <br />fund operating statements px�esent increases (revenues and other <br />financing sources) and decreases (expenditures and other financing uses) <br />in net current assets. Accordingly, they are said to present a summary <br />of sources and uses of "available spendable resources" during a period. <br />Fixed assets are all recorded at historical cost or estimated historical <br />cost, if the original cost is not available. Donated fixed assets are <br />stated at their fair market value on the date donated. Additions to <br />fixed assets for general City purposes, including public domain <br />(infrastructure) fixed assets, are recorded as an expenditure of the <br />applicable fund in the year in which the asset is purchased, and are <br />capitalized i❑ the General Fixed Asset Account Group. Depreciation is <br />not recorded on these assets. <br />Long-term liabilities expected to be financed from governmental funds <br />are accounted for in the General Long-term Debt Account Group, not in <br />the governmental iunds. The single exception to the general rule is for <br />special assessment bonds, which are accounted for in special assessment <br />funds. <br />The two account groups are not "funds" <br />the measurement of financial position. <br />measurement of resuLts of operations. <br />_��_ <br />They are con�erned only with <br />They are not involved with <br />