Annual_Report_1985_001 - Laserfiche WebLink

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CITY OF ROSEVILLE, MINNESOTA NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) DECEMBER 31, 1985 Note 1- Summary of SiQnificant AccountinQ Policies (Continued) E. Assets, Liabilities and Fund Equity (Continued) assessments not yet due for collection are shown as deferred special assessments on the balance sheet. Inventories - Inventories held by the Enterprise funds are stated at the lower of cost or market, using the first-in, first-out method. The cost of inventory is recognized as expense at the time the items are sold or used (consumption method). Encumbrances - Encumbrances represent purchase commitments. Encumbrances outstanding at year-end are reported as reservations of fund balances since they do not constitute expenditures or liabilities. Vacation, Sick and Compensatory Time 0£f Pay - The City compensates employees upon termination for unused vacation and compensatory time off. Employees are not compensated for unused sick pay upon termination of employment, except upon retirement, at which time employees are entitled to one-half of their accumulated leave up to one month's pay. Vacation and compensatory time off are accrued when earned and sick pay is expensed when payment is made in the proprietary funds. Vacation, compensatory time of£, and sick pay are recognized when payment is made in the governmental funds. Liability for the governmental funds is reflected in the General Long-Term Debt Account Group. Total Columns on Combined Statements - Total columns on the combined statements are captioned "Memorandum Only" to indicate they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. Note 2 - Fund Deficits Special assessments - A fund balance deficit of $(3,167,734) existed in this fund on December 31, 1985. This deficit arises because of the application of generally accepted accounting principles to the financial reporting for this fund. Special assessments are recognized as revenue only to the extent that individual installments and deferred payments are considered current assets. As of December 31, 1985, this fund had deferred assessments of $3,009,745 and deferred tax levies of $11,311,850. It has been the City's practice to cancel the tax levies when funds are sufficient to provide retirement of debt. Note 3- BudQet Expenditures Compared to Actual Expenditures exceeded the budget for the Recreational Fund by $27,329 and the Economic Development Fund by $163. The excess of expenditures over budget was due to higher than anticipated activitiy in both funds, but the excess had no major impact on the financial results of the City. _32_