Annual_Report_1986_001 - Laserfiche WebLink

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City. Responsibility for both the accuracy of the presented data and the completeness and £airness of the presentation, including a11 disclosures, rests with the City. We believe the data as presented is accurate in all material aspects, that it is presented in a manner designed to fairly set forth the financial position and results of operations of the City as measured by the financial activity of its various funds, and that all disciosures necessary to enable the reader to gain the maximum understanding of the City's financial activity have been included. The CltY Entitv and Its Services The City's financial statements include all £unds, account groups, departments, agencies, boards, commissions, and other organizations over which City officials exercise oversight responsibility. Oversight responsibility includes such aspects as appointment of governing body members, budget approval, approval o£ property tax levies, outstanding debt secured by City fu11 faith and credit or revenues, responsibility for funding deficits, and others. As a result o£ applying the criteria of NCGA Statement 3, the Fire Relief Association and Independent School Disticts u621 and �623 have been excluded from the City's Financial statements. The City providess 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. Accountina System and Budgetary Control The accounting system provides for a complete, self-balancing account group for each fund of the City. Accounting records are maintained on the modi£ied accrual basis for the governmental type funds and 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 satements. In developing and altering the City's accounting system, consideration is given to the adequacy of internal accountinq 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 ior assets. The concept of reasonable assurance recognizes the cost of a controi should not exceed the bene£its likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within the above framework, We believe that the City's internai accounting controls adequately safeguard assets and provide reasonable assurance o£ proper recording o£ financial transactions. -2-