Comprehensive Annual Financial Report 12/31/2011

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2011 Note 13 INTERFUND RECEIVABLE AND PAYABLES (CONTINUED) Interfund receivable and payable balances not expected to be repaid within one year are reported as advances to and from other fund and at December 31, 2011 are as follows: Receivable Payable Governmental Activity: Area and Unit Charge $ 578,641 $ Other Nonmajor Governmental Funds - 578,641 $ 578,641 $ 578,641 The purpose of the advance from the Area and Unit Charge Fund is to temporarily finance projects in the Dedicated Parks Fund. Note 14 INTERFUND TRANSFERS Individual fund transfers for fiscal year 2011 are as follows: Transfer In Transfer Out Governmental Activity: General Fund $ $ (741,964) Improvement Bonds of 2005A 83,333 Improvement Bonds of 2009F 106,000 Area and Unit Charge - (478,650) Other Nonmajor Governmental Funds 2,782,382 (1,684,979) Total Governmental Activity 2,971,715 (2,905,593) Business -Type Activity: Water Fund (33,061) Sewer Fund (33,061) Total Business -Type Activity (66,122) Total $ 2,971,715 $ (2,971,715) Interfund transfers are other financing sources and uses within the fund financial statements. The purpose of the transfers is to provide funding for capital improvement projects, capital outlay, and debt service as well as to open and close funds. Note 15 RISK MANAGEMENT The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Workers compensation coverage is provided through a pooled self - insurance program through the League of Minnesota Cities Insurance Trust (LMCIT). The City pays an annual premium to LMCIT. The City is subject to supplemental assessments if deemed necessary by the LMCIT. The LMCIT reinsures through Workers Compensation Reinsurance Association (WCRA) as required by law. For workers compensation, the City is not subject to a deductible. The City's workers compensation coverage is retrospectively rated. With this type of coverage, final premiums are determined after loss experience is known. The amount of premium adjustment, if any, is considered immaterial and not recorded until received or paid.