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CITY OF RAMSEY <br />Notes to :Financial Statements (continued) <br />December 31, 1998 <br />NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED <br />( ) <br />5. Formal budgetary integration is employed as a management control device during the year for <br />the following funds: <br />I General Fund <br />Special Revenue Funds <br />Economic Development Authority Fund <br />Enterprise Funds <br />Water Utility <br />Sewer Utility <br />Street Light Utility <br />Recycling Utility <br />For remaining Special Revenue. Funds and Capital Project Funds, effective budgetary control <br />is achieved through the use of project controls. Budgetary control for Debt Service Funds is <br />achieved through bond indenture provisions. <br />6. Formal budgets are adopted on a basis consistent with generally accepted accounting principles <br />(GAAP) for the General Fund, Economic Development Authority Special Revenue Fund, and <br />all Enterprise Funds. <br />7. As required by City Charter, the Council sets the legal level of budgetary control. Control is <br />maintained at the department level, for all budgeted funds. This provides management the <br />ability to alter the budget between line items in each department but the total budgeted for each <br />department for the year cannot be exceeded without specific Council approval. <br />Budgeted expenditure appropriations lapse at year-end. Encumbrance outstanding expire at year-end and <br />are not reported in the financial statements. <br />Budgeted expenditure amounts shown are as originally adopted or amended by the City Council: <br />Original Amend- Amended <br />Bud eg_t ments Bud eg t <br />General Fund $ 3,439,038 $ 158,647 $ 3,597,685 <br />Special Revenue Fund <br />Economic Development <br />Authority Fund $ 110,885 $ 18,195 $ 129,080 <br />M. Memorandum Only Columns <br />Because the accounting system is organized and operated on a fund basis, the columns on the combined <br />.financial statements captioned, "Totals (Memorandum Only)," are presented for informational purposes only <br />and are not intended to represent consolidated information. Data in these columns does not present financial <br />position, results. of operations, or cash flows in :conformity with generally accepted accounting principles. <br />Interfund eliminations have not been made in the aggregation of this data. <br />-17- <br />