Laserfiche WebLink
li <br />i ■ ••' ^ <br />'yiX-m: <br />r'.' f • - <br />rlfS#' <br />;S;: ■'' <br />PW, <br />CITY OF ORONO, MINNESOTA <br />Notes to Financial Statements (continued) <br />December 31. 1991 <br />NOTE I - SIGNinCANT ACCOUNTING POLICIES (CONTINUED) <br />2) Proprietary Fund Type <br />a) Enterprise Funds • The Enterprise Funds are used to account for operations that are financed <br />and (grated in a manner similar to private business enterprises - where the intent of the <br />governing body is that the costs of providing goods or services to the general public on a <br />continuing basis be financed or recovered primarily through user charges. <br />3) Fiduciary Fund Type <br />a) Trust Fund - The Trust Fund is used to account for assets held by the City in a trustee <br />capacity. <br />b) Agency Funds > The Agency Funds are used to account for assets held by the City in the <br />edacity of trustee or agent Agency Funds are custodial in nature (assets equal liabilities) <br />and do not involve measurement of results of i perations <br />4) Account Groups <br />a) General Fixed Assets - This account group contains the fixed assets acquired principally for <br />genera) inirposes and excludes fixed assets of the Proprietary Funds. <br />b) General Long-Term Debt • This account group contains the long-term obligations of the <br />City other than those liabilities included in the Proprietary Funds. <br />D. Basif of Accounting <br />1) Modified Accrual * The Governmental Fund Types and Trust and Agency Funds are accounted <br />for using the modified accrual basis of accounting Generally, only current assets and current <br />iiibilhica are included in th^e funds Governmental Funds use the ‘finucial flow” measurement <br />focus. Consetpiemiy, their revenue is recognized when it becomes measurable and available as <br />net current auets. Available means collectible within the current period or soon enough <br />thereafter to be used to pay liabilities of the current period. <br />Major revemie that is susceptible to accrual includes property taxes, special assessments, <br />lattfgovernmental revalue, charges fur services, and interest earned on investmotts. Major <br />revalue that is not susceptible to accrual includes licenses and permits, fees, tmd miscellaneous <br />revenue. Such revenue is recorded only when received because it is not measurable until <br />collected. <br />Expenditures are recognized under the modified accrual basis of accounting when the ridated fond <br />lU^ility is incurred, exc^ for principal and interest on genera) long-term debt which & <br />rioognized when due <br />29 <br />-i <br />' <br />I <br />..A ■ ^ .c,..