Annual_Report_1984_001 - Laserfiche WebLink

Home

The City Entity and Its Services The City has reviewed its reporting entity definition in light of NCGA Statement 3, Defining the Governmental Reporting Entity. The entities included in the City's report are those for which the City has oversight responsibility and the report includes all the funds and account groups for the City. The Firemen's Relief Association is an independent entity as authorized by Minnesota Statute and has been excluded from the reporting entity (see Note 1 to the financial statements.) The City provides a full range of municipal services as authorized by State statute. This includes general government, public safety, public works, parks and recreation, water and sewer utility and community development. AccountinQ System and BudQetary Control The accounting system provides for a complete, self-balancing account group for each fund of the City. Accounting records are maintained on the modified accrual basis for the governmental type funds and the trust and agency fund, and the accrual basis of accounting is utilized for the proprietary type funds, as defined in the notes to the financial statements. In developing and altering the City's accounting system, consideration is given to the adequacy of 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 accountability for assets. The concept of reasonable assurance recognizes the cost of a control should not exceed the benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. Al1 internal control evaluations occur within the above framework. We 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 with the budget in this report would reflect these revisions. Reserve for encumbrances is reported as part of the fund balance at the end of the fiscal year. City Financial HiQhliQhts DurinQ 1984 1) Moody's Investors �Service bond rating remained at Aa-1 and Standard and Poors bond rating at AA-1. 2) The City Council closed the last municipal off-sale liquor store on August 31, 1984. Only private off-sale liquor licenses will be issued in the future. -2-