Annual_Report_1994_001 - Laserfiche WebLink

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CITY OP ROS6VILL8 NOT65 TO FINANCIAL STAT6MHNT5 DHC6MBHR 31. 1994 N t 1 5 f S' '£' t A tin Policiee (Continued) C. Meaeurement Pocue Rhe a<covnCing and reporCing treatment applied to the fixed aeeete and long-tezm liabilitiee aeaociated with a fund are dete�ined by ite meaeurement focus. Governmental funde and Hxpendable Trvet funde are accounted £or on a epending or "£inancial flow" meaeurement £oeue. Thie meane that only turzent aeee[e and current liabilities are generally ineluded on theiz balance eheete. Their reported fund balancc ia coneidered a meaeure o£ available ependable resources. Governmental fund opexating etatemente preeent inereaeee (revenvee and other £inancing eourcee) and decreaeea (expenditurea and other £inancing uaee) in net current aeeete. Accordingly they are said to preeent a summary of eoureee and ueee o£ available apendable reeourcee during a period. Fixed aeeete ueed in govemmental fund type operatione (general fixed aeeete) are aceounted for in the General Fixed Aeeete Accovnt Gmup zather than in Governmental Funde. Pubic domain general fixad aeeete coneieting of certain impmvemente othez than buildinga including soade bridgee curbe and guttere etzeets and eidevalke and lighting eyeteme are capitalized along with other general Eixed aeeete. No depreciation hae been provided on general fixed aseets. Long-teim liabilitiea expected Co be £inanced from governmental funds aze aeeounted £or in the General Long Term Debt Aecount Group not in the governmental funde. The account gmupa dif£er from "funde" in that they aze not involved with meaeurement of operatione. They aro concerned only vith the meaeurement of f3naneial poeition. NOIIC1lLZCIIt �'rt1011e o£ lOS1g-YeYID Ieceivd{fle6 dU< to goV¢SORentdl £LLi1de aYe ICpOrtGd OR theiY 631ance 8heete 12l Bpite of their meaeurement foeus. However apecial xeporting treatmenta aze ueed to indieate in a governmental funde that they should not be conaidezed "available ependable reeourcea• aince Chey do not repreeent net eurrent aeeete. Recognition o£ revenuee in theee funda repreeented by noncurrent receivablae are deferred until they become current xeceivablee. eecauee o£ theix epending meaeumment focue, expenditure reeognition for govesnmantal fund typee exclude amounte repreaented by noncurzent liabilitiee. Sinee they do not affect net eurrent aeeete sueh long texm amovnte are not recognized ae governmantal £und type expendituree oz fund liabilitiee. They are inetead reported ae liabilitiee in the General Long-tesm Deb[ Aecount Gmup. Proprietary £unde are accounted for on a coet of all asaete, including £ixed asee[e, and all activity, are intluded on their balac�ce eheete. and retained earnings eomponenta. The operating (expensee) in net tatal aeseta. D. Baeis of Accounting eervicee or "capital maintenance^ meaeurement focue. Thie meana that liabilitiee, including long-texm liabilities aeaociated with their Theiz reported f�nd equity ie eegzegated into contributed eapital etatemente o£ the funde praeant increaeee (revenuee) and decreaeee The modi£ied accxual baeie oE accounting ie ueed by a governmental fund typee, and agenry funde. Under the modi£ied acczual baeie oE accowting, xevenuee are recognizad when eueeeptible to accrual (ie., when they become both measurable and available). "Meaeurable^ meane the amount o£ tha tranea<tion can be dete�ned and ^available^ meane collectible within Yhe current peziod oz eoon enough thereaEter to be ueed to pay liabilitiee of the current period. The city considere property ta�cee ae available if they are collected vithin 60 daye a£ter year end. &xpendituzee are recorded when the related fund liability ie ineuxred. Principal and inecrest on gencral long-tezm debt are recorded as £und liabilitiea when d�e or when amoun[e have been aecumulaYed in the debt eervice £und foz paymente to be made eazly in the £ollowing year. Thoee revenuee sueeeptible to accrual are pxoperty eaxee, apecial aeeeaemente, liceneee, intereat revenve and chazges £or aervicee. State aide held by the etate at year-end on behalf of the govemment aleo are reeognized ae revenue. Pines and permite are not eueceptible to accrual becavee generally they are not meaevrable until reeeived in caeh. The govemment reporte defened revenue an ite eombined balance eheet. Deferred revenues ariee When a potential revenue does not meet both the "meaeuzable" and "available" cziteria for recognition in the current period. De£erred revenuee also aziae vhen reeovrcee are received by the govexnmcnt be£ore it hae a legal claim to them ae when grant monies aze received prior to the incurrenee of qualiEying expendituree. Zn eubeequent periode when both revenue recognition critezia aze met oz when the government hae a legal elaim to Uhe reaourcee the liability £or defexred revenue ie zemoved from the combined balanee eheet and xevenue ie recognized. 6�cpendituree aze generally reeogciized under the modi£ied accrval basie oE aecounting when the related Evnd liability ie incurred exeept foz principal and intereet on general long-texm debt which ie recoyziized when due and accumulated unpaid vaeation and compeneatory time off vhich are recognized when paid. The accrual baeis of accounting ie utilized by proprietary Eund typae. f)nder thie method, revenves are recorded vhen eazned and e�enees ase recorded at Che time liabilitiae are incuzred. thibilled utiliey eervice reeeivablee are recorded at yeaz end. 31