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APPENDIX III <br /> SELECTED ANNUAL FINANCIAL STATEMENTS <br /> IWOExcerpts from the City's annual financial statements from the years ended December 31, 1997, <br /> 1996 and 1995 are presented on the following pages. The City's financial statements are <br /> audited annually by an independent certified public accounting firm. Governmental funds and <br /> expendable trust funds are accounted for using the modified accrual basis of accounting. <br /> Proprietary funds are accounted for using the accrual basis of accounting. The readers should <br /> be aware that the complete financial statements may contain additional data relating to the <br /> information presented here, which may interpret, explain or modify it <br /> i <br /> III-1 <br />