07-10-1995 Council Packet - Laserfiche WebLink

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To Uw City Council and Citizens of the City of Orono May 17, 1995 Financial Information The management of the City is responsible for establishing and maintaining a system of internal accounting control. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding the safeguarding of assets against loss from unauthorized use or disposition, and the reliability of financial records for preparing financial statements in conformity with generally accepted accounting principles and maintaining accountability for assets. The concept of benefits likely to be derived, and the evaluation of costs and benefits requires estimates and judgments by management. All internal control evaluations occur within this framework for the purpose of adequately safeguarding assets and providing reasonable assurance in the proper recording of financial transactions. The City maintains budgetary controls to aid in compliance with the annual budget as adopted by the City Council. Formal budgetary integration is employed as a management control device during the year for the General Fund and Special Revenue Funds. Budgetary control for Debt Service Funds is achieved through general obligation bond provisions. Budgetary control for Capital Project Funds is accomplished through the use of project controls. Budgetary control is maintained at the department level through the issuance of purchase orders. Expenditures are monitored during the year, and any recommended adjustments to the budget are presented to the Council for approval by City management. Unused appropriations lapse at year-end: however, the Council may approve carryover of specific items. The financial .statements and schema .> iru’ jded in the Financial Section of this report retlect the City ’s continued adherence to sound financial management. -7-