CCAgenda_04May19 - Laserfiche WebLink

Home Browse Search

CITY OF FALCON HEIGHTS, NIINNESOTA MANAGEMENT'S DISCUSSION AND ANALYSIS December 31, 2003 Government-wide Financial Statements -The government-wide financial statements are designed to provide readers with a broad overview of the City of Falcon Heights' finances, in a manner similar to aprivate-sector business. The statement of net assets presents information on all of the City of Falcon Heights' assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Falcon Heights is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Falcon Heights that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their • costs through user fees and charges (business-type activities). The governmental activities of the City of Falcon Heights include general government, public safety, public works, park and recreation and community development. The business-type activities of the City of Falcon Heights include sanitary sewer and storm drainage. The government-wide financial statements include only the City of Falcon Heights itself (lmown as the primary government). The City of Falcon Heights has no component units. The government-wide financial statements can be found on pages 27-28 of this report. Fund Financial Statements - A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Falcon Heights, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with fmance-related legal requirements. All of the funds of the City of Falcon Heights can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds -Governmental funds are used to account for essentially the same functions reported as governmental activities in the government=wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information maybe useful in evaluating a government's near-term financing requirements. • 16