Laserfiche WebLink
<br />. <br /> <br />1 <br /> <br />~, <br /> <br />1 <br /> <br />J. <br />1 <br /> <br />e <br /> <br />CITY OF ELK RIVER FIRE RELIEF ASSOCIATION <br />NOTES ~O FINANCIAL STATEMENTS <br />DECEMBER 31, 1992 <br /> <br />Note 1: FORM OF GOVERNMENT <br /> <br />The City of Elk River Fire Relief Association was incorporated in 1922. It <br />operates under the provisions of Minnesota Statutes Section 69. It is <br />governed by a board of nine members. Six of the board members are elected by <br />the members of the Association for three-year terms. The Mayor, Finance <br />Director and Fire Chief are ex-officio voting members of the board of <br />trustees. <br /> <br />Note 2: FINANCIAL REPORTING ENTITY <br /> <br />Note 3: <br /> <br />The City of Elk River Fire Relief Association has implemented the Governmental <br />Accounting Standards Board's Codification Section 2100 (GASB Cod. Sec. 2100), <br />Defininq the Governmental Reportinq Entity. For financial reporting purposes, <br />the Association's financial statements include all funds, account groups, <br />departments, agencies, boards, commissions and other organizations over which <br />the Association's officials exercise oversight responsibility. <br /> <br />SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <br /> <br />A. Fund Accounting <br /> <br />The resources of the Association consist of the Special Fund, which <br />represents a pension trust fund for the accumulation of resources to be <br />used for retirement, dependency and disability annuity payments of <br />appropriate amounts and at appropriate times in the future. The revenue <br />received is from the City of Elk River property taxes, from the State of <br />Minnesota two-percent gross earnings tax on fire insurance premiums and <br />from investment activity of the Association. <br /> <br />The Association does not maintain a separate General Fund because all <br />resources are properly attributable to the Special Fund. <br /> <br />B. Basis of Accountinq <br /> <br />The accounting policies of the City of Elk River Fire Relief ASSOciation <br />conform to generally accepted accounting principles. The accrual method <br />of accounting is used for the Special Pension Trust Fund. <br /> <br />C. Investments <br /> <br />Investments, consisting of mutual funds and limited partnership interests, <br />are recorded at the lower of cost or market. <br /> <br />Interest income is recognized when earned and dividend income is <br />recognized when received. <br /> <br />Note 4: INVESTMENTS <br /> <br />The following is a summary of the Association's investments in the Special <br />Pension Trust Fund at December 31, 1992: <br /> <br />Cost <br /> <br />Market <br />Value <br /> <br />Mutual funds <br />Limited partnership <br /> <br />$464 276 <br />11 405 <br /> <br />$486 900 <br />10 772 <br /> <br />Total <br /> <br />$475 681 <br /> <br />$497 672 <br /> <br />-5- <br />