6.1. SR 06-03-2013 - Laserfiche WebLink

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ELK RIVER FIRE RELIEF ASSOCIATION ELK RIVER,MINNESOTA NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31,2012 AND 2011 Note 5: CONTRIBUTIONS REQUIRED AND CONTRIBUTIONS MADE The Association's funding policy provided for contributions from the State and the City in amounts sufficient to accumulate sufficient assets to pay benefits when due.The annual contribution is the sum of the normal cost,the State contribution payment and the provision for administrative expenses. The Association is comprised of volunteers;therefore,there are no payroll expenditures or covered payroll percentage calculations. A required contribution of$117,465 and$116,902 plus an additional supplemental benefit amount of$1,000 and$1,620 was made by the State in accordance with Minnesota statute for the years ended December 31,2012 and 2011, respectively.A required contribution of$29,818 and$38,490 was made by the City for the years ended December 31,2012 and 2011,respectively. There was also a voluntary contribution of$182 and$10 made by the City for the years ended December 31,2012 and 2011,respectively. Note 6: RISK MANAGEMENT The Association is exposed to various risks of loss related to theft of assets for which the Association carried commercial insurance policies.There were no significant reductions in insurance from the previous year or settlements in excess of insurance coverage for any part of the past three fiscal years.The Association invests in mutual funds that are subject to market value fluctuations. Note 7: EVALUATION OF SUBSEQUENT EVENTS The Organization has evaluated subsequent events through May 1,2013,the date which the financial statements were available to be issued. Note 8: ACCOUNTING CHANGE Governmental Accounting Standard Board(GASB)Statement No. 63,Financial Reporting of Deferred Outflows of Resources,Deferred Inflows of Resources, and Net Position, will improve financial reporting by the presentation of deferred outflows of resources and deferred inflows of resources and their effects on the Association's net position. GASB Statement No. 65,Items Previously Reported as Assets and Liabilities, will improve financial reporting by clarifying the appropriate use of the financial statement elements deferred outflows of resources and deferred inflows of resources to ensure consistency in financial reporting. The Association implemented these standards for the fiscal year ended December 31,2012. The Association enters into transactions that result in the consumption or acquisition of assets in one period that are applicable to future periods. These consumptions or acquisitions are deferred outflows of resources and deferred inflows of resources and are distinguished from assets and liabilities. Net position is the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. The Statement of Net Position(renamed from the Statement of Net Assets)is presented in a format that shows assets,plus deferred outflows of resources, less liabilities, less deferred inflows of resources, equals net position. -32-