06-25-1990 Council Packet - Laserfiche WebLink

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CITY OF ORONO NOTES TO FINANCIAL STATEMENTS (Continued) December 31, 1989 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) d) Capital Project Funds *" The Capital Project Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities (other than those financed by Proprietary Funds). 2) Proprietary Fund Type - a) Enterprise Funds - The Enterprise Funds are used to account for operations that are financed and operated in a manner similar to private business enterprises — where the intent of the governing body is that the costs cf pro viding goods or services to the general public on a con tinuing basis be financed or recovered primarily through user charges. 3) Fiduciary Fund Type - a) Agency Funds - The Agency Funds are used to account for assets held by the City in the capacity of trustee or agent. Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. 4) Account Groups - a) General Fixed Assets - This account group contains the fixed assets acquired principally for general purposes and excludes fixed assets of the Proprietary Funds. b) General Long-Term Debt - This account group contain.- the long-term obligations of the City other than those liabil ities included in the Proprietary Funds. D. Basis of Accounting 1) Modified Accrual - The Governmental Fund Types and Agency Funds are accounted for using the modified accrual basis of accounting. Generally, only current assets and current liabilities are included in these funds. Governmental Funds use the "financial flow" measurement focus. Consequently, their revenue is recognized when it becomes measurable and available as net current assets. Available means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. -28-