1981 CAFR - Laserfiche WebLink

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r CITY OF ST. ANTHONY NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1981 Note 1. Significant Accounting Policies (Continued) Inventories - Inventories held by the proprietary fund types (Liquor and Utility Funds) are stated at the lower of cost or market based on the first -in, first -out valuation method. Expendable supplies are expensed as purchased. Property, Plant and Equipment - Property, plant and equipment of the proprietary funds are recorded at cost. Depreciation has been provided using the straight-line method over the estimated useful lives of the assets. Depreciation on Utility Funds property, plant and equipment, which has been financed by special assessments, grants and other contributions, is charged against current income and is then redistributed as a charge against the contributed capital account. General Fixed Assets - General fixed assets owned by the City are not included in the financial statements because records of such assets are not maintained. Generally accepted accounting principles require that a statement of general fixed assets be included in the financial statements. Bonded Indebtedness - Liabilities are recorded in the Special Assessment Funds for improvement bonds payable. Interest expense is recorded as an expenditure when paid; interest is not accrued unless fully matured and not paid. Interest payments due January 1 are recognized as expenditures when amounts are remitted to the paying agent (usually in December) for payment of interest. Vacation, Sick Leave and Severance Pay - City employees are entitled to vacation and sick leave based upon length of employment and the payment thereof is treated as an expenditure in the period paid. The amount of accrued vacation and sick leave at December 31, 1981 was approximately $443,000 and is not recorded in the financial statements. The City has established a severance pay policy for employees. This policy provides for severance payments based upon the number of days of sick leave accrued, subject to certain regulations. The City has appropriated funds to provide necessary funding for anticipated severance payments. Combined Statements - Total columns on the combined statements are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position, results of operations or changes in financial position in conformity with generally accepted accounting principles. Interfund transactions have not been eliminated in the aggregation of this data. -13-