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CtTY OF ROSEYILLE ♦• • ♦:• • • u : •• Ziote t- Summarv of SignificantArc� mcin�PQiicies—continued FiDUCIARY FUNDS Agency funds - Agency Funds are used ro account for the assets held by the City in a trustee capaciry or as an agent for individuais, private organizations, other governments, and/or other funds. The Ciry's Agency Funds are custalial in namre (assets equal liabilities) and do not involve measurement of results of operations. ACCOUNT GROUPS The general fixed assets account group is used to account for fized assets no[ accounted for in proprietary or trust funds. The genetal long-term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary or trust funds. G Measurement Focus The accounting and repotting treatment applied to the fixed assets and long-term liabilities associated with a fund aze determined by its measurement focus. Governmental funds and Expendable Trust funds aze accounted for on a spending or "fmancial flow" measurement focus. This means that only cunent assets and current liabilities aze generally included on their balance sheets. Their reported fund balance is considered a measure of available spendable resources. Govemmental fund operating statements present increases (revenues and other fmancing sources) and decreases (ezpenditures and other financing uses) in net current assets. Accordingty they ue said to presen[ a summary of sources and uses of available spendable resources during a period. Fixed assets used in govemmental tund rype operations (general fixed assets) are accounted for in the General Fized Asse[s Accouc�t Group rather [han in Govemmental Funds. Pubic domain general fixed assets consis[ing of cenain improvements other than buildings including roads bridges curbs and gutters streets and sidewalks and lighting systems are capitalized along with other general fixed assets. No depreciation has been provided on general fixed assets. L.ong-term liabilities expected to be financed from govemmental funds aze accoun[ed for in the General Long Term Debt Account Group not in the govemmental funds. The account groups differ from "funds" in that they aze not involved with measurement of operations. They are concemed only with the measurement of Financial position. Noncurrent portions of long-term receivables due to govemmental funds aze reported on their balance sheets in spite of their measurement focus. However special reporting treatments are used [o indicate in a govemmental funds that they should not be considered "available spendable resources" since they do not represent net current assets. Recognition of revenues in these funds represen[ed by noncurrent receivables are deferred until they become current receivables. Because of their spending measurement focus, expenditure recognicion for governmental fund rypes ezclude amounts represented by noncurrent liabilities. Since they do not affect net current assets such long term amounts are not recognized as governmental fund type expendimres or fund tiabilities. They aze instead reported as ]iabilities in the General I.ong-term Debt Account Group. Proprietary funds are accounted for on the flow of economic �esources measurement focus and use the accrual basis of accounting. Under this method, revenues aze recorded when earned, and expenses aze recorded at the time liabilities are incurred. The Ciry applies at] applicable FASB pronouncemenu in accounting and reponing for ics' proprietary operations. Proprietary funds include the enterprise and internal service funds. D. Basis of Accounting The modified accrual basis of accounting is used by a govemmental fund rypes, and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible ro accrual (ie., when they become both measurable and available). 30