Agenda - Council - 06/23/1981 - Laserfiche WebLink

Home

C. Basis of Accounti__n~ Governmental funds and Expendable Trust Funds are accounted for using the modified acc~dal basis of accounting. Their revenues are recognized when they become measureable and available. Substantially all sources of revenue are accrued except interest on special assessments receivable, which is recognized when due. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred, except for principal and interest on general long- term debt which is recognized when due. D. Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The City Administrator submits to the City Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. 2. Public hearings are conducted to obtain taxpayer comments. B. The budget is legally enacted through passage of a resolution. The City Council may authorize transfer of budgeted amounts between departments within any fund. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund and Special Revenue Funds. Budgetary control for Capital Projects and Special Assessment Funds is accomplished through the use of project controls. 6. Budgets for the General and Special Revenue Funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). y. Budgetary control is maintained at the object of expenditure category level within each activity. There are no legal provisions relating to the level of budgetary control. Budgeted amounts are as originally adopted, or as amended by the City Council. Budgeted expenditure appropriations lapse at year-end. - 7 -