Laserfiche WebLink
City of Orono, Minnesota <br />Notes to the Financial Statements <br />December 31, 2023 <br />Note 1: Summary of Significant Accounting Policies (Continued) <br />The City participates in various pension plans, total pension expense for the year ended December 31, 2023 is as follows: <br />Deferred Inflows of Resources <br />In addition to liabilities, the statement of net position and fund financial statements will sometimes report a separate <br />section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, <br />represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of <br />resources (revenue) until that time. The City has four types of items, which arise only under a modified accrual basis of <br />accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is <br />reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from three <br />sources: delinquent property taxes, special assessments and intergovernmental revenue. These amounts are deferred <br />and recognized as an inflow of resources in the period that the amounts become available. The City also recognizes a <br />deferred lease resources, which is reported under both the modified accrual and full accrual basis <br />Furthermore, the City has one additional item which qualifies for reporting in this category on the statement of net <br />position. The item, deferred pension resources, is reported only in the statement of net position and results from actuarial <br />calculations involving net differences between projected and actual earnings on plan investments and changes in <br />proportions. <br />Net Position <br />Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred <br />inflows of resources. Net position is displayed in three components: <br />a. Net investment in capital assets - Consists of capital assets, net of accumulated depreciation reduced by any <br />outstanding debt attributable to acquire capital assets. <br />a. Restricted net position - Consists of net position balances restricted when there are limitations imposed on their <br />use through external restrictions imposed by creditors, grantors, laws or regulations of other governments. <br />b. Unrestricted net position - <br />first, then unrestricted resources as they are needed. <br />58 <br />accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is accounting that qualifies as needing to be reported in this category. Accordingly, the item, unavailable revenue, is <br />reported only in the governmental funds balance sheet. The governmental funds reportreported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from tunavailable revenues from t <br />sources: delinquent property taxessources: delinquent property taxes, special assessments, special assessments and and intergovernintergovernmental revenuemental revenue. These amounts are deferred . These amounts are deferred <br />and recognized as an inflow of resources in the period that the amounts become available. The City also recognizes a and recognized as an inflow of resources in the period that the amounts become available. The City also recognizes a <br />deferred lease deferred lease resources, which is reported under both the modified accrual and full accrual basis, which is reported under both the modified accrual and full accrual basis <br />Furthermore, the City has Furthermore, the City has one one additional item which qualifadditional item which qualifiesies for reporting in this category on the statement of net for reporting in this category on the statement of net <br />position. Theposition. The item, deferred pension resources, item, deferred pension resources, isis reported only in thereported only in the statement of net position and results from actuarial statement of net position and results from actuarial <br />calculations involving net differences between projected and actualcalculations involving net differences between projected and actual earnings on plan investments and changes in earnings on plan investments and changes in <br />93