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 F. Inventory The inventory of the Proprietary Fund is stated at the lower of cost or market on the first -in, first -out basis. G. Accumulated Unpaid Vacation, Sick Pay, and Other Employee Benefit Amounts Accumulated unpaid vacation, sick pay, and other employee benefit amounts are not accrued. At December 31, 1981, unrecorded liabilities included approximately $3,500 vacation pay and $45,800 sick pay. These amounts do exceed a normal year's accumulations for sick pay. H. Comparative Data Comparative total data for the prior year have been presented in the accompanying financial statements in order to provide an understanding of changes in the City's financial position and operations. However, comparative (i.e., presentation of prior year totals by fund type) data have not been presented in each of the statements since their inclusion would make the statements unduly complex and difficult to read. I. Total Memorandum Only Columns Because the accounting system is organized and operated on a fund basis, the columns on the combined financial statements captioned, "Total (Memorandum Only)" are presented for informational purposes only, and are not intended to present consolidated information. Note 2: Property Taxes A property tax levy is approved by Council resolution and certified to the county auditor for collection. Property taxes attach an enforce- able lien on taxable property within the City on January 1. The taxes are collected by the county treasurer and tax settlements are made with the City as of the last day of February, May, and October each year. A portion of the property taxes levied is paid by the State of Minnesota in the form of a homestead credit and is included in intergovernmental revenue in the financial statements. Note 3: Special Assessments Receivable There is approximately $133,000 of assessments receivable in the 1979 Improvement Special Assessment Fund which were levied against proper - ties which are currently not developable. The City is attempting to obtain necessary waivers so these properties may be developed in the future. It is not known if the City will be successful in obtaining the waivers. If these waivers are not obtained, the City may levy ad valorem taxes, if needed, to repay the bonds which were issued for these improvements. - 14 -