CC WORKSESSION 06031997 - Laserfiche WebLink

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C� ST. ANTHONY FIREFIGHTERS RELIEF ASSOCIATION NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1995 Note 1. Summary of Significant Accounting Policies The St. Anthony Firefighters Relief Association is organized and operates in accor- dance with provisions of statutes of the State of Minnesota. It is governed by a nine member Board of Trustees, with six members elected from the membership of the Association and three statutory ex- officio trustees from the City of St. Anthony. A. Fund Accounting The Special Pension Fund is a pension trust fund for the accumulation of resources for the payment of retirernEnt and other benefits to its members in the future based on years of service. Revenues are from the two - percent insurance premium tax and other aids received from the State of Minnesota and investment income. Benefits are payable in a lump sum based upon length of service and annual benefit amount. The General Fund accounts for all financial resources not accounted for in other funds. It is used for the benefit of the Association as determined by its bylaws. B. Basis of Accounting The financial statements of the Special Pension Fund are prepared on the accrual basis of accounting; statements of the General Fund are prepared on the modified accrual basis of accounting. Revenues are recognized when they become measurable and available to finance current liabilities of the Association. Revenues suscep- tible to accrual include contributions from the state and investment income. Expenditures are recognized when the related fund liability is incurred. C. Investments State statutes authorize and define the types of investments available to the Asso- ciation. Investments of the Special Pension Fund are stated at market value when available or at amortized cost if market value not readily available. Investment income is recognized as earned. Unrealized gains or losses from changes in market value are reflected in the statement of changes in net assets available for benefits. D. Statement of Cash Flows For purposes of this statement, cash includes demand deposits in bank accounts with a maturity date of less than three months from date of purchase: E. Total Columns - Memorandum Only The total column on the combined financial statements is captioned 'memorandum only' to indicate that it is presented only to facilitate financial analysis. Data in this column does not present financial position, results of operations and cash flows in conformity with generally accepted accounting principles.