Annual_Report_1994_001 - Laserfiche WebLink

Home

Denartmental Service Improvements During 1994, the City Council, spent a great deal of effort in planning and gathering community input to place the City's pazks and recreation efforts as a high priority. The result of that planning enabled the Department to begin a reorganization of personnel and operations. The John Rose Minnesota Oval, the Ice Arena, and the Pazks and Recreation Department were combined into one special revenue fund. A restructuring of personnel has set in place a lower cost operation, more e�cient use of staff and a expansion of recreation, and additional programming of both ice and dry surface for 1995. �nancial Information Accounting Svstem 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 modified accrual basis for the governmental rype funds and trust and agency funds, and the accrual basis of accounting is utilized for the proprietary type funds, as defined in the notes to the financial statements. In deve(oping and altering the Ciry'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 regazding the safeguazding 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. All internal control evaluations occur within the above framework. We believe that the City's internal accounting controls adequately safeguazd 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 Ciry Council. The financial statements of revenues 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. General Government Functions General Fund The General Fund accounts for all financial uansactions not properiy accounted for in any other fund. Revenues (including operating �ansfers) of the General Fund totaled $6,843,427, an increase of $248,149 from 1993. 4