07-14-1986 Council Packet - Laserfiche WebLink

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CITY OF ORONO NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 1: Summary of Significant Accounting Policies The City operates under "Optional Plan A" form of government as defined in the State of Minnesota Statutes. The City Council, composed of an elected mayor and four elected trustees or councilmembers, exercises legislative authority and determines all matters of policy. The accounting policies of the City conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies: A. REPORTING ENTITY - In accordance with National Council on Governmental Accounting (NCGA) Statement Number 3, these financial statements include all funds and account groups over which the City exercises oversight responsibility. B. FUND ACCOUNTING - The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The City maintains the following funds, grouped by fund type and account groups: (1) Governmental Fund Types - a) General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except 'iiuse required to be accounted for in another fund. b) Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes. c) Debt Service Funds - Debt Service Funds are used to account for tl,e accumulation of resources for, and the payment of, ge,ieral long-term debt principal, interest, and related costs. d) Capital Project Funds - 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, special assessment funds, and trust funds). e) Special Assessment Funds - Special Assessment Funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied.