Comprehensive Annual Financial Report 12/31/2011

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i IMEnr Nr- CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) P. INTERFUND TRANSACTIONS Interfund services provided and used are accounted for as revenues, expenditures or expenses. Transactions that constitute reimbursements to a fund for expenditures /expenses initially made from it that are properly applicable to another fund, are recorded as expenditures /expenses in the reimbursing fund and as reductions of expenditures or expenses in the fund that is reimbursed. All other interfund transactions are reported as transfers. All Interfund transactions are eliminated except for activity between governmental activities and business- type activities for presentation in the entity-wide statements of net assets and statements of activities. Q. PRIOR PERIOD ADJUSTMNENT The amount of land at December 31, 2010 was understated due to unrecorded donated land from previous years. A total of $466,800 was added to the beginning balance of land and the adjustment was posted to beginning net assets on the government -wide statement of activities. Note 2 DEPOSITS AND INVESTMENTS Components of Cash and Investments Cash and investments at year -end consists of the following: Deposits $ 4,532,173 Investments 23,389,470 Cash on Hand 820 Total $ 27,922,463 Cash and investments are presented in the financial statements as follows: Cash and Investments - Statement of Net Assets $ 27,221,483 Cash and Investments - Statement of Net Assets - Fiduciary Funds 700,980 Total $ 27,922,463 A. Deposits The City maintains a cash and investment pool that is available for use by all funds. Each fund type's portion of this pool is displayed on the statement of net assets and the balance sheet as "Cash and Investments." In accordance with Minnesota Statutes, the City maintains deposits at financial institutions which are authorized by the City Council.