Annual_Report_1985_001 - Laserfiche WebLink

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The City Entity and Its Services The Gity's financial statements include all funds, account groups, departments, agencies, boards, commissions, and other organizations over which City of£icials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget approval, approval of property tax levies, outstanding debt secured by City full faith and credit or revenues, responsibility for funding deficits, and others. As a result of applying the criteria of NCGA Statement 3, the Fire Relief Association and Independent School Districts Oi621 and 1i623 have been excluded from the City's 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. Accounting 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. A11 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. -�-