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~l <br />CITY OF RAMSEY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 1989 <br />Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES <br />The accounting policies for the City of Ramsey conform to generally accepted <br />accounting principles applicable to governmental units. The following is a <br />summary of the more significant policies. <br />' A. Principles Used to Determine the Scope of the Governmental Entity <br />For financial reporting purposes, the City's financial statements include all <br />' funds, account groups, departments, commissions, and other organizations <br />over which City officials exercise oversight responsibility. There are no <br />other organizations that when considered would be included in the financial <br />statements. <br />Oversight responsibility includes such aspects as appointment of governing <br />body members, budget approval, approval of property tax levies, outstanding <br />debt secured by the City's full faith and credit or revenue, and responsibility <br />for funding deficits. <br />B. Fund Accountina <br />. The accounts of the City are organized on the basis of funds and account groups, <br />each of which is considered a separate accounting entity. The operation of each <br />' entity is accounted for with a separate set of self-balancing accounts <br />consisting of assets, liabilities, fund equity, revenue, and either expenditures <br />or expenses as appropriate. Governmental resources are allocated to and <br />accounted for individual funds based upon the purposes for which they are to <br />be spent and the means by which spending activities are grouped into three <br />fund types and seven generic funds that are described as follows: <br />' 1) Governmental Fund Tykes -These funds are used account for most <br />governmental functions. The funds included in this category are as <br />' follows: <br />a) General Fund -The General Fund is the general operating fund <br />of the City. It is used to account for all financial resources except <br />those required to be accounted for in another fund. <br />b) Special Revenue Funds -The Special Revenue Funds are used to <br />' account for the proceeds of specific revenue sources that are <br />legally restricted to expenditures for specified purposes. <br />c) Debt Service Funds -The Debt Service Funds are used to <br />account for the accumulation of dedicated resources and the <br />payment of principal, interest, and related costs. <br />-, 3_ <br />