Audit Report 12/31/1981 - Laserfiche WebLink

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NOTES TO FINANCIAL STATEMENTS - Continued December 31, 1981 Note 1: Summary of Significant Accounting Policies - Continued GOVERNMENTAL FUNDS - Continued: Special Assessments Funds - Special Assessments Funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. PROPRIETARY FUNDS: Enterprise Funds - Enterprise Funds are used to account for opera- tions (a) that are financed and operated in a manner similar to private business enterprises -- where the intent of the governing body is that the costs (expenses, including depreciation) of pro- viding goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic deter- mination of revenue earned, expenses incurred, and /or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. B. Fixed Assets and Long -Term Liabilities The governmental fund types previously discussed are designed to account for the financial flow of a particular fund; therefore, they generally include only current assets and current liabilities on their balance sheets. The City maintains two account groups to account for noncurrent assets and long -term liabilities as follows: General Fixed Assets - This separate group of accounts contains the fixed assets used in the governmental fund type operations. They are assets of the City as a whole and not of individual funds. Roads, bridges, curbs and gutters, streets and sidewalks, and drainage systems are not capitalized. The fixed assets are valued at actual cost or estimated replacement value as of December 31, 1975. Additions since 1975 are stated at cost. The policy of stating such assets at other than cost is at variance with generally accepted accounting principles. These assets are not accounted for in detailed inventory records. Fixed assets related to the proprietary fund are accounted for in that fund. They are valued at actual or estimated original cost. Depreciation of all exhaustible fixed assets of this fund is charged as an expense against its operations. Accumulated depre- ciation is reported on that fund's balance sheet. Depreciation is based upon the estimated useful lives of the assets using the