1993 CAFR - Laserfiche WebLink

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, C C COUJN7cI(N(Cn 2 07i"IE1K, 37 ANIZ,_ JUITEDSTIPAR (("((DN7TTRQDT(,S. The City's accounting system is organized and operated on a fund basis. Each fund or account group is a distinct, self - balancing accounting entity. The various funds and account groups utilized by the City are described in Note One of the financial statements. All funds are in conformity with generally accepted accounting principles applicable to governmental entities. Accounting and bookkeeping for all City activities are centralized under the Finance Department. The responsibility for financial records, maintaining internal controls, and preparing financial and budgetary reports is delegated to this department. The internal control structure is designed to ensure that the assets of the City are protected from loss, theft or misuse and to ensure that adequate accounting data is compiled to allow for the presentation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that : (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgements by management. The City also maintains budgetary controls of which the objective is to ensure compliance with legal provisions embodied in the annual appropriated budget as approved by the City Council. During the year, the Council may increase the budget, but only to the extent that additional revenues have been realized. The level of budgetary control (that is, the level at which expenditures cannot legally exceed the appropriated amount) is established by fund for the General Fund and certain Special Revenue Funds. The City Council also adopts a five -year Capital Improvement Program as a financial planning document. C A ET FLEA G IEMITEN J The City of Ramsey subscribes to the "pooled cash" concept of investing, which means that all funds with cash balances (except the Escrow Fund) participate in an investment pool. This permits some funds to be temporarily overdrawn and others to show cash balances, when in fact the City has a cash balance. This pooled cash concept provides for investing greater amounts of money at more favorable rates. During 1993, the City earned $614,879 from investments in obligations issued by the United States and its agencies, bank certificates of deposits, repurchase agreements and commercial paper. WISITC MIA NA GigI ITM7I" The City's workers compensation and employer's liability insurance is provided through the League of Minnesota's Insurance Trust and provides statutory coverage. The City also maintains a Self - Insurance Trust Fund which allows the City to opt for higher deductibles and lower overall rates. JID TET93 r AI(D WHITS 71`TRZA71`rN Net bonded debt per capita and the percentage of net debt to the tax capacity and market value are useful indicators of the City's debt position to municipal management, citizens, and investors in city bonds. v