Comp Annual Fincl Rpt 12/31/81 - Laserfiche WebLink

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EXHIB IT 4 CITY OF RAMSEY. MINNESOTA NOTES TO FINANCIAL STATEMENTS DECEMBER 31~ 1981 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fund Accountin& The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate ~ accounting entity. The operations of eacb fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds are grouped, in tbe financial statements in this report, into five generic fund types and two broad fund categories as.follows: GOVERNMENTAL FUNDS: General Fund - Tbe General Fund is the general operating fund of tbe City. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds - Special Revenue Funds are used to account for the proceeds of certain specific revenue sources that are legally restricted to expenditures for specified purposes. Capital Projects Fund - The Capital Projects Fund is used to account for financial resources to be used for the acquisi- tion or construction of major capital facilities, other than those financed by Special Assessment Funds. Special Assessment Funds - Special Assessment Funds are used to account for the financing of public improvements or services deemed to benefit the properties against which special assessments are levied. -10- I I i I I I I I l ! I I I I I I ! I !