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CITY OF ST. ANTHONY <br />NOTES TO FINANCIAL STATEMENTS <br />DECEMBER 31, 1982 <br />Note 1. Significant Accounting Policies <br />The City of St. Anthony (the City) is incorporated under statutes of the <br />State of Minnesota and operates under a council-manager plan. Accounting policies <br />adopted by the City conform to generally accepted accounting principles and reflect <br />practices common to local governmental units, except for the lack of a general fixed <br />assets account group. The more significant accounting policies are summarized <br />below. <br />Fund Accounting and Budget - The accounts of the City are organized on the <br />basis of funds, each of which is considered a separate accounting entity. <br />Operations of each fund are accounted for in a separate set of <br />self -balancing accounts. Activities accounted for in individual funds are <br />based upon the purpose for which the fund was established. The various <br />funds are arranged in the financial statements into seven fund groups and <br />into three broad fund types. A plan of financial operation is set forth in <br />the annual budget adopted by the City Council. The amounts shown in the <br />financial statements represent the original budgeted amount and all <br />revisions made during the year. <br />Governmental Fund Types - Revenue and expenditures are recognized on the <br />modified accrual basis of accounting. Under the modified accrual basis, <br />revenue is recognized in the accounting period in which it becomes <br />available and measurable. Expenditures are recognized in the accounting <br />period in which the liability is incurred by the fund, if measurable, <br />except for unmatured interest on long-term debt and accumulated unpaid <br />vacation and sick pay, which are not accrued. <br />Proprietary Fund Types - Income and expenses are recognized on the accrual <br />basis of accounting. Income is recognized in the accounting period in <br />which it is earned and becomes measurable; expenses are recognized in the <br />period incurred, if measurable. <br />Fiduciary Fund Type - The basis of accounting for this fund type is <br />essentially the same as for governmental fund types. <br />Cash and Short -Term Investments - Cash available in excess of immediate <br />needs is invested in certificates of deposit and short-term government <br />obligations. Interest income is recognized as earned. Interest earnings <br />are allocated to City funds on the basis of average cash balances. <br />Investments are stated at cost, which approximates market. <br />General Property Taxes - Revenue is recognized in the year of anticipated <br />collection, with amounts due from the County and received early in the <br />following year recorded as unremitted taxes receivable. Allowances are <br />provided for the full amount of delinquent taxes receivable. This <br />procedure has the effect of recognizing general property taxes as revenue <br />when cash is received because of the uncertainty of collection of the <br />delinquent amount. <br />dP.D <br />