Annual_Report_1998_001 - Laserfiche WebLink

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80% clearance rate. The restructuring of the building codes department, with improved lines of communication, is expected to result in a continuing high level of complaint enforcement. F'mancial Information � � �• -u .i� : �• ,♦ .� �I The accounting system provides for a complete, self-balancing account group for each fund of the City. Accounting records aze maintained on the modified accrual basis for the governmental type funds, and agency funds, and the accrual basis of accounting is utilized for the proprietary type funds and investment trust fund, as defined in the notes to the financial statements. In developing and altering the City'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 safeguarding of assets against loss from ' unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintainirig accountability :or assets. : he concept of reasanable assura�ce recognizes that 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 the City's internal accounting controis adequately safeguard assets and provide reasonable assurance of proper ' recording of fina�icial transactions. ' ' A budgetary system of accounts is maintained for the general and special revenue funds. Conuol is maintained by the use of a purchase order system and the continuing review of actoal expenditures compazed to budgeted amounts. Budget revisions aze implemented upon appr�vat of a resolution by the C;ty Council. The financial statements of revenues and expenditures compared with the budget in this report would reflect these revisions. General Government Functions ��I The General Fund acccunts for ail financial transactions not properly accounted for in any other fund. Revenues of the General Fund totaled $8,145,281, an increase of $646,752 from 1997. ExpendituYes (irtcluding operating transfers) for the fieneral Fund totated $'7,791,263 an increase of $593,229 overthe previous year. The fund balance increased by $354,018 and totaled $4,566,590 at the end of the year. The fund balance is available to provide working capital for the fund until tax settlements aze received in Ju1y and December of each year, to provide funds for unknown events which would have an adverse effect on the fund, and to help finance future budgets. The City has