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CITY OF LINO LAKES, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 1995 <br />N. LONG -TERM OBLIGATIONS <br />Long -term debt is recognized as a liability of a governmental fund when due, or when resources have <br />been accumulated in the Debt Service Fund for payment early in the following year. For other long- <br />term obligations, only that portion expected to be financed from expendable available financial <br />resources is reported as a fund liability of a governmental fund. The remaining portion of such <br />obligations is reported in the General Long -Term Debt Account Group. Long -term liabilities expected <br />to be financed from proprietary fund operations are accounted for in those funds. <br />O. FUND EQUITY <br />Contributed capital is recorded in Proprietary Funds that have received capital grants or contributions <br />from developers, customers or other funds. Reserves represent those portions of fund equity not <br />appropriable for expenditure or legally segregated for a specific future use. Designated fund balances <br />represent tentative plans for future use of financial resources. <br />P. INTERFUND TRANSACTIONS <br />Quasi - external transactions are accounted for as revenues, expenditures or expenses. Transactions that <br />constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly <br />applicable to another fund, are recorded as expenditures/expenses in the reimbursing fund and as <br />reductions of expenditures/expenses in the fund that is reimbursed. <br />All other interfund transactions, except quasi - external transactions and reimbursements, are reported as <br />transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity <br />transfers. All other interfund transfers are reported as operating transfers. <br />Q. MEMORANDUM ONLY - TOTAL COLUMNS <br />Total columns on the General Purpose Financial Statements are captioned "Memorandum Only" to <br />indicate that they are presented only to facilitate financial analysis. Data in these columns do not <br />present financial position, results of operations or changes in cash flows in conformity with generally <br />accepted accounting principles. Neither are such data comparable to a consolidation. Interfund <br />eliminations have not been made in the aggregation of this data. <br />34 <br />