Annual Financial Report 12/31/1985

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1985 Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies of the CITY OF LINO LAKES, MINNESOTA conform to generally accepted accounting principles as applicable to governmental units. FINANCIAL REPORTING ENTITY The City has implemented National Council on Governmental Accounting Statement No. 3, Defining the Governmental Reporting Entity. In accordance with Statement No. 3, for financial reporting purposes the City's financial state- ments include all funds, account groups, boards and commissions over which the City Council exercises oversight responsibility. Oversight responsibility includes appointment of governing bodies, budget authority, approval of tax levies, and responsibility for funding deficits. There are no additional units of government which meet the criteria of NCGA #3 for inclusion in the Annual Financial Report of the City of Lino Lakes, Minnesota. The following organizations are not included from the accompanying financial statements: Lino Lakes Gas Utility Franchise - This franchise is a part of the Circle Pines Gas Utility System. The City of Circle Pines presently appoints all members of the Gas Utility Commission. In addition, the City of Circle Pines has control over the assets and operations of the Lino Lakes Gas Utility Franchise. Lino Lakes Senior Council - The Senior Council utilizes a center funded by the City and a Community Development Block Grant through Anoka County. The Senior Council has authority over the activities it finances as well as responsibility for fiscal matters. There are no additional units of government which meet the criteria of NCGA #3 for inclusion in the Annual Financial Report of the City of Lino Lakes, Minnesota. FUNDS AND ACCOUNT GROUPS The accounting system of the City is organized and operated on a fund basis. A fund is defined as a fiscal and accounting entity with a self - balancing set of accounts recording cash and other financial resources, together with all related liabilities and residual equities or balances, and changes therein, which are segregated for the purpose of carrying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations.