5.1. SR 05-14-2001 - Laserfiche WebLink

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City of Elk River March 15, 2001 Page Twelve Government -wide Financial Statements The government -wide financial statements are (1) a statement of net assets and (2) a statement of activities. The statement of net assets presents the government's financial position at a point in time (like a balance sheet does); the statement of activities presents its activities during a period (like an operating statement does). These statements present highly aggregated information for the overall government; they do not display individual funds or fund types. They also present financial information in separate rows and columns for the (1) primary government's aggregate governmental activities, (2) primary government's aggregate business -type activities, (3) total primary government, and (4) discretely presented component units. Capital Assets Capital assets are tangible and intangible assets that are used in operations that have initial useful lives longer than one year. They include land and improvements, easements, buildings and improvements, equipment, and works of art and historical treasures. Capital assets also include infrastructure assets — normally stationary capital assets that can be preserved for significantly greater number of years than most capital assets. Infrastructure assets include roads, bridges and tunnels; water, sewer and drainage systems; dams; lighting systems; and buildings that are an ancillary part of a network of infrastructure assets. Capital assets are reported in the statement of net assets at historical cost (or estimated fair value, if donated) and net of accumulated depreciation. They are depreciated in the statement of activities over their estimated useful lives. Infrastructure Assets GASB Statement No. 34 applies prospectively to all general infrastructure assets beginning at the effective dates of the Statement (or earlier, if the statement is implemented earlier). Governments are also encouraged to apply the Statement retroactively to all existing major general infrastructure assets at that time. However, phase 1,2 governments need not retroactively report those assets until calendar year 2006, 2007 — four years after their required implementation of Statement No. 34. Phase 3 governments are encouraged but not required to report major general infrastructure assets retroactively. If there are inadequate records of the actual historical cost of existing general infrastructure assets, governments can estimate historical cost. They also may limit retroactive application to only those major general infrastructure assets that were acquired or significantly reconstructed, or that received significant improvements, in fiscal years ending after June 30, 1980. The City has already begun work on some of the implementation specifics and will be working on infrastructure records this summer. The finance department has done a good job in identifying what is needed for implementation and then completing projects to achieve it. This will ensure that the City will be ready for full implementation upon the deadline if not before. Status of Prior Year Recommendations Prior Year Comment Community Recreation Billing Currently, the community recreation program that the City participates in does not provide any support for their reimbursement requests. The City only receives a spreadsheet with the reimbursement amount on it. Since this program is operated outside of the City offices, it would be appropriate to require more documentation with their requests for payment. Current Status This item has been corrected and the City is receiving adequate documentation.