Annual_Report_1992_001 - Laserfiche WebLink

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In developiag and altering the City's accounting eystem, consideration is given to the adequacy of internal accounting coatrols. Internal accounting controls are deeigned to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loes from unauthorized uae or dieposition and the reliability of financial records for prepar- iag fiaancial etatemeats and maintaining accountability for sesete. The concept of reasonable aseurance zecognizes the cost of a cont=ol should not exceed the benefite likely to be derived, and the evaluation of coets and benefits requirea estimatee and judgmente by management. Al1 internal control evaluations occur within 'the above framework. We believe that the City's iaternal accounting controls adequately safeguard assets and provide reseonable aesurance of proper recording of financial transac- tioas. A budgetary syetem of accounts is maintained for the general and special revenue funde. Control ie maintained by the uee of a purchase order system and the continuing review of actual expenditures compared to budgeted amounts. Budget revieions are done upon approval of a resolution by the City Council. The financial statements of revenue and expenditures compared with the budget in thie report would reflect these revieions. Reserve for encumbrances is reported ae part of the fund balance at the end of the fiscal year• G ,�� oor++�ent Fimctioms General Fund The General Fund accouats for all financial transactions not properly accounted for in any other fund. Revenues (including operating tranefers) of the General Fund totaled $6,072,254, an increase of $ 551,497 from 1991. Expendituree (including opezat- ing tzansfera) for the General Fund totaled $5,986,888 an in- crease of $284,807 over the previous year. The fund balance increaeed by $85,366, and wae $3,218,097 at the end of the year. The fund balance is available to provide working capital for the fund until tax settlements are received in July and December of each year, to provide funda for unknown events which would have an adverse effect on the fund, and to help finanee future budg- ets. The City has deeignated $2,898.378 of thie balance for working capital, $306,282 for vacation pay and compensatory time off aad a reserve of $13,437 for the police drug forfeiture pro- gram The amount of revenue from varioue sources and the changes from last yeas are shown in the following tabulation: 5