Annual Financial Report 12/31/1989

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1 1 1 1 1 1 1 1 s 1 1 1 1 1 1 CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1989 NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Page 1 of 21 The accounting policies of the City of Lino Lakes, Minnesota conform to generally accepted accounting principles as applicable to govemmental units. FINANCIAL REPORTING ENTITY The City of Lino Lakes is a public corporation formed under Minnesota Statutes 410. As such the City is under home rule charter regulations and applicable statutory guidelines. In accordance with the Codification of Governmental Accounting and Financial Reporting Standards (GASB) Section 2100, Defining the Reporting Entity, for financial reporting purposes the City's financial statements 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. As a result of applying the criteria of the Codification of Governmental Accounting Standards Board Section 2100, certain organizations have been included or excluded from the City's financial statements: Included Entity None Excluded: Lino Lakes Gas Utility Franchise Lino Lakes Senior Council Reason for Inclusion/Exclusion Operated as part of the Circle Pines Gas Utility. City of Lino Lakes exercises minimal management control. City receives annual share of gross revenue. Although the Senior Council uses a center funded by the City, the Senior Council has authority over the activities it fmances as well as responsibility over fiscal matters. 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 canying on specific activities or attaining certain objectives in accordance with special regulations, restrictions, or limitations. The following types of funds and account groups are employed by the City. GOVERNMENTAL FUNDS General Fund - to account for all financial resources except those required to be accounted for in another fund. Debt Service Funds - to account for the accumulation of resources for, and the payment of, general long-term debt principal, interest and related costs. Capital Project Funds - to account for financial resources to be used for the acquisition or construction of major capital facilities.