5.1. SR 05-14-2001 - Laserfiche WebLink

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CITY OFELK RIVER, MINNESOTA NOTES TOFINANCIAL STATEMENTS DECEMBER 31.2QOO Note 11: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED [l |mtexfundTransaodon Quasi -external transactions are accounted for as revenue and expenditures or expenses. Transactions that constitute reimbursements boafund for expenditures/expenses in0a|lymade from it that are properly applicable huanother fund are recorded as expend ihures/expenses inthe reimbursing fund and asreductions of expend itures/expenses inthe fund that isreimbursed. All other interfumdtransactions, except quasi -external transactions and reimbursements, are reported as transfers. Nonrecurring mnonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. P, Memorandum Only - Total Columns Total columns onthe general purpose financial statements that are captioned "memorandum only" indicate they are presented only tnfacilitate financial analysis, Data inthese columns dnnot present financial position, results of operations or changes in cash flows in conformity with generally accepted accounting principles. Neither are such data comparable toa consolidation. Umterfundeliminations have not been made inthe aggregation ofthiadata. Q. Comparative Data/Reclassifications Comparative total data for the prior year have been presented imthe accompanying financial statements in order to provide an understanding of changes in the government's financial position and operations. However, comparative data have not been presented inall statements because their inclusion would make certain statements unduly complex and difficult to understand. Certain amounts presented inthe prior year data have been reclassified to conform with the current year's presentation, Note 2: LEGALCOMPLkANCE-BWOGETS On or before July 1 of each year, all agencies of the government submit requests for appropriation to the City's administrator eothat abudget may beprepared. The budget baprepared bvfund, function, and activity and includes information qmthe past year, current year estimates, and requested appropriations for the next fiscal year. Before September 15.the proposed budget iepresented to the government's council for review. The government's council holds public hearings and may add to, subtract from urchange appropriations. Any changes in the budget must be within the revenue and reserves estimated as available or the revenue estimates must be changed by an affirmative vote by a majority of the government's council. Expenditures may not legally exceed budgeted appropriations at the fund level without Council approval. Spending control imestablished bythe amount ofexpenditures budgeted for the fund, but management control |sexercised atthe line item level. During the year, supplementary appropriations were not material. 16