Comprehensive Annual Financial Report 12/31/1998

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Wow ammo CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1998 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) R. MEMORANDUM ONLY - TOTAL COLUMNS Total columns on the General Purpose Financial Statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations or changes in cash flows in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. S. ACCOUNTING CHANGE The City has adopted Governmental Accounting Standards Board Statement No. 31, "Accounting and Financial Reporting for Certain Investments and for External Investment Pools ". The cumulative effect of applying Statement No. 31 has been reported as a restatement of beginning fund balance and retained earnings for the current year. The following shows the cumulative effect on beginning fund balance and retained earnings by fund type: As Originally Cumulative Reported Effect As Restated General Fund $ 3,057,912 $13,478 $ 3,044,434 Special Revenue Funds 38,123 191 37,932 Debt Service Funds 1,009,512 1,923 1,007,589 Capital Project Funds 10,933,272 66,465 10,866,807 Enterprise Funds 1,492,588 5,875 1,486,713 Note 2 DEPOSITS AND INVESTMENTS DEPOSITS In accordance with Minnesota Statutes, the City maintains deposits at those depository banks authorized by the City Council, all of which are members of the Federal Reserve System. Minnesota Statutes require that all City deposits be protected by insurance, surety bond, or collateral. The market value of collateral pledged must equal 110% of the deposits not covered by insurance or bonds (140% in the case of mortgage notes pledged). Authorized collateral includes the legal investments described below, as well as certain first mortgage notes, and certain other state or local government obligations. Minnesota Statutes require that securities pledged as collateral be held in safekeeping by the City Treasurer or in a financial institution other than that furnishing the collateral. At year -end, the carrying amount of the City's deposits was $140,306 and the bank balance was $100,502. The entire bank balance was covered by Federal depository insurance or by collateral held by the City's agent in the City's name. 41