06-09-14 Council Packet - Laserfiche WebLink

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CITY OF LINO LAKES, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 2013 Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) O. FUND EQUITY (CONTINUED) The fund equity balances in the proprietary funds have been classified into two broad categories: Net position — net investment in capital assets Unrestricted net position Net position represents the differences between assets and liabilities in the government -wide financial statements. Net position — net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the ouststanding balance of any long-term debt used to build or acquire capital assets. Net position is reported as restricted in government -wide financial statements when there are limitations on their use thorugh external restrictions imposed by creditors, grantors, or laws or regulations of other governments. 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 position and statements of activities. Note 2 DEPOSITS AND INVESTMENTS Components of Cash and Investments Cash and investments at year-end consists of the following: Deposits Investments Cash on Hand Total Cash and investments are presented in the financial statements as follows: Cash and Investments - Statement of Net Position Permanent restricted Cash and Investments - Statement of Net Position Cash and Investments - Statement of Net Position - Fiduciary Funds Total A. DEPOSITS $ 3,252,636 31,643,322 820 $ 34,896,778 $ 34,105,825 121,475 669,478 $ 34,896,778 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 position 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. 43