Audit Report 12/31/1981 - Laserfiche WebLink

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CITY OF LINO LAKES NOTES TO FINANCIAL STATEMENTS December 31, 1981 1 Note 1: Summary of Significant Accounting Policies The City of Lino Lakes operates under "Plan A" as defined in the State of Minnesota Statutes. Under this plan the government of the City is run by a council composed of an elected mayor and four elected trustees or councilmen. The Council exercises legislative authority and deter- mines all matters of policy. The City Administrator, who is appointed by the Council, is responsible for the proper administration of all affairs relating to the City. The accounting policies of the City of Lino Lakes conform to generally 1 accepted accounting principles as applicable to governments except for the valuation of certain general fixed assets. The following is a sum- mary of the more significant policies: A. Fund Accounting 1 1 1 1 GOVERNMENTAL FUNDS: General Fund The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. 1 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 operations of each fund are accounted for with a separate set of self - balancing accounts that comprise its assets, liabilities, fund equity, revenue, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in the financial state- ments in this report, into six generic fund types and two broad fund type categories as follows: Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of specific revenue sources (other than special assessments or major capital projects) that are restricted to expenditures for specified purposes. Debt Service Funds - Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long -term debt principal, interest, and related costs. Capital Projects Funds - Capital Projects 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 and special assessment funds).