1996 CAFR - Laserfiche WebLink

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FINANCIAL SECTION (continued) Trust and Agenc~Funds (continued) Trott Brook Cemetery Perpetual Care Fund: The Trott Brook Cemetery Perpetual Care Fund is used to account for perpetual care fees collected on the sale of cemetery plots in Trott Brook Cemetery. Interest earnings will be used to provide for maintenance of the cemetery. On December 31, 1996, the fund balance was $8,729. Agency Funds -Agency funds are custodial funds (assets equal to liabilities) and. do not involve measurement of operations. Agency funds are merely clearing accounts and have no fund equity. Deferred Compensation Plan Funds: The various Deferred Compensation Plan funds are used to account for employee deferred compensation plans created in accordance with Section 457 of the Internal Revenue Code. neral Fixed Asset Account Gr 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, 1996, the general fixed assets of the City amounted to $5,665,464. 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, financial 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 fum 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.