1995 CAFR - Laserfiche WebLink

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General Fixed Asset Account Group: FINANCIAL SECTION (continued) The general fixed assets of the City are those fixed assets of tangible nature and significant value, which have a service life in excess of one year, are used in the performance of general governmental functions, and are not accounted for in the Enterprise Funds. These assets are accounted for in the General Fixed Asset Account Group. The City has chosen not to report infrastructure fixed assets such as streets, storm sewers, and similar assets that are immovable and of value only to the City. As of December 31, 1995, the general fixed assets of the City amounted to $4,907,447. This amount represents the original cost of the assets and is considerably less than their present replacement value. Depreciation is recognized in the City's accounting system for only the Enterprise Funds fixed assets, and not the general fixed assets. General Long -Term Debt Account Group General obligation bonds and other forms of long -term debt supported by general revenues and the full faith and credit of the City are obligations of the City as a whole and not a single individual fund. The proceeds from such debt may also be spent on facilities which are utilized in the operations of several funds. For these reasons, the amount of un- matured, long -term indebtedness, which is backed by the City, are accounted for and reported in a separate self - balancing group of accounts entitled General Long -Term Debt Account Group. INDEPENDENT AUDIT Minnesota Statutes and the City Charter require an annual audit of all accounts, fmancial records and transactions of the City by independent certified pubic accountants. This requirement has been complied with and the auditors' opinions have been included in this report. The accompanying financial statements have been audited by the firm of Malloy, Montague, Karnowski, Radosevich and Company, Independent Certified Public Accountants. The firm is engaged by the City Council to render an opinion on the City's fmancial statements in accordance with generally accepted accounting principles, and an unqualified opinion has been issued. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada [GFOA] awarded a Certificate of Achievement for Excellence in Financial Reporting to the City for its comprehensive annual financial report for the year ended December 31, 1994. This was the first time the City has received this prestigious award since 1988. The City had consecutively received the award from 1981 through 1988, after which point, due to a number of factors, there had not been application for review. In order to be awarded a Certificate of Achievement, the City published an easily readable and efficiently organized comprehensive annual fmancial report. This report satisfied both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive annual financial report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. gig