Annual_Report_1998_001 - Laserfiche WebLink

Home

�� I �' c� 0 I • • � u : .. I � ' ��u�uu:.�ravon.:....�:.:,�:.-'"`"„a ,..,_'..__' r � s D. Basis of Accounting The malified accruai besis of accomting is usecl by govemmental fiuui types ancl sBencY funcls. Under Ihe awdified accrual besis of accounting, revenues are recognized when susceptible to eccmel (i.e., when they become both measureble and available). ^M�,ti��le^ me�u the ecnount of the transaction can be determined, azu1 "uvailable" means collectible within the current perial o� soon enougli thereafter to be usecl to pay liebili[ies of the current perial. 17ie City considers propeRy taxes as available if they ara collecteJ within 60 days after year-e�cl_ Expenditures are recordecl when the related fiind liability �s incurred. Principa� end interest on generul �o�_�� t are recorcled as funcl liabilities when due or when emounts heve been accumuleted in the debt service fund for payments to be mazle eerly in the following yaer. 11wse reveoues susceptible [o accmal are property taxes, special assessments, licenses, interest revenue, encl charges for services. Sta[e ni�s i�eld by Lhe stste at year-entl on behalf of the govertunent also are recogttizecl us revenue. Fines a[d pe*tnrts are no[ susceptible to acemal because generally they are no[ meesurable until receiveel in cach. T'he go�eimyeat reports defemed revenue ou its combined bslance sheec. Deferrecl revenues xrise when a potential revenue dces not meet both the "meesurable" encl "availeble" cri[eria for recognit�on in the curtent periocl. Deferted revenues also arise wheo resourees w'e received by the govemment before it t�as a 1ega1 claim to them, as when grant monies are received prior to the 'u�currence of qualifying ezpeculi[ures. In subsequent perials, when both revenue recognition criteria ure me[ or when the govertunent has a legal claim to the resources, the Gabihty for deferrecl revenue is removed from Ihe combinecl 6alance sheet azd revenue is recoguizecl• ��y��pu,� �, g�erally recog�ized unier Ihe malified accnwl basis oi accounting when the reletecl fual liebility is incunecl, except for Frine�pal encl interas[ on general long-tertn debt which is recognizecl when due, ancl accumuletetl unpaicl vecation az�cl compensatory time off which are recognizecl wheu they are expectecl to be Yinancecl from expenclable availabYe financial resources. Tiie ecenial besis of uecounting is utilizecl by p�oprietsry ft!ful tyF�es anci [he inves[me�rt trust fiitd. Unclee this method, reveoues are recorcled when eart�ed ancl expenses ere reconlecl at the time liabilities are incurrecl. E. B�ulgets ercl Buclgetary Accounting � C�h, e�Opts anm�al buclgets for the general enel special revenue funels whieh ere preparecl on the modified aecrual basis of aceoun[ing. '{�e adoptecl Luctget 'vulicates tne ae�iamt thet cen be expenclecl by wch futul baseti on detailed Mdget eseuoetee for individual expeocliNre aecamts. Menegemenc may meke bu�IBet mai'ficatioas within the funcl levei. All buclget reviaions ek the fued level must be euthorizad by the City Cwmcil e[ tbe request of the City Msnager. The Council, uculer Mirvusota Stamtes, Sec[ion 412.731, cen modify or emencl ��ga �.��.��j (�js �e a�ai�eble, $uclget malification et the fucxl level wes necessary in 1998 for the License Center Fucrt encl the Chariteble Gembling Furul. The amenclments included increases of 542,000 end 533,000 resueetively. All aupplemental eppropriations are finauced eit6er by transfers from the contingency section of the general funcl buclBet or by revenues received in excess of t6e budgeted emounts. All bucl8et azn°�s lapse at the encl of tUe year to the extent they have not been ezpelded. The level which expendiC�res mey not legally ezceed appropriations is et the funcl level. 31