7.1. SR 06-01-2015 - Laserfiche WebLink

Home Browse Search

CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2014 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED C. Basis of Presentation — Government -Wide Financial Statements While separate government -wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds, while business -type activities incorporate data from the city's enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. As discussed earlier, the city has one discretely presented component unit. While the HRA is not considered to be a major component unit, it is nevertheless shown in a separate column in the government -wide financial statements. As a general rule, the effect of interfund activity has been eliminated from government -wide financial statements. Exceptions to this general rule are charges between the city's sewer, water and electric functions and various other functions of the city. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. D. Basis of Presentation —Fund Financial Statements The fund financial statements provide information about the city's funds, including its fiduciary funds and blended component units. Separate statements for each fund category — governmental, proprietary, and fiduciary — are presented. The emphasis of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise funds are reported as separate columns in the fund financial statements. The government reports the following major governmental funds: The General fund is the city's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The YMCA bonds debt service fund is used to account for the accumulation of resources and payment of principal and interest on bonds used to finance the construction of a recreation facility which is leased to the YMCA. The TIF districts capital projects fund is used to account for administrative and development costs associated with the various tax increment financing projects. The government reports the following major enterprise funds: The Municipal Liquor fund accounts for the operations of the city's off -sale liquor stores. The Garbage fund accounts for the activities of the garbage and recycling collection programs. The Sewer fund accounts for the activities of the sanitary sewer treatment system. The Water fund accounts for the activities of the water distribution system. The Electric fund accounts for the activities of the electric distribution system Additionally, the government reports the following fund types: The Developer Escrow agency fund is used to account for resources received from developers for the payment of expenses incurred by the city for private development projects. During the course of operations the government has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government -wide financial statements. Balances 37