Audit Report 12/31/1980 - Laserfiche WebLink

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1 NOTES TO FINANCIAL STATEMENTS - Continued December 31, 1980 Note 1: Summary of Significant Accounting Policies - Continued Depreciation of general fixed assets is not provided for in the City's records because depreciation does not constitute a current budgetary expenditure. The costs of these items are accounted for as current expenditures of the various funds in the year paid. ' d. Budgetary data - The City Council and the separate boards and com- missions adopt an annual budget. Supplemental appropriations are authorized by these same authorities during the budget year. The 11 amounts shown in the financial statements as "Budget" represent the original budgeted amount. Note 2: Pension Plan ' Substantially all City employees are covered by a statewide contribu- tory retirement plan operated by the Public Employees Retirement Association (PERA). The City records pension expense as the contribu- tions come due. Contributions for 1980 were $24,779. Contribution rates are determined on a statewide basis and include provisions for prior service costs. The assets of the State of Minnesota PERA Fund were substantially less than the actuarially computed value of vested 1 benefits as of the most recent valuation date. That part of the defi- ciency attributable to the City is not determinable. Note 3: Long -Term Debt General Obligation Bonds - The General Obligation Municipal Building 11 Bond and Certificates of Indebtedness are recorded in the General Long -Term Debt Group of Accounts. They are backed by the full faith and credit of the City. Special Assessment Bonds - These bonds are recorded as a liability in the Special Assessment Funds. The bonds are payable primarily from special assessments to be levied and collected for local improvements. They are backed by the full faith and credit of the City. Contracts Payable - Contracts included in long -term debt are the contract obligations extending over several years. 1 1 1