1989 CAFR - Laserfiche WebLink

Home

' CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS (Continued) ' December 31, 1989. ' Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cor~tinued) 2) eneral Lonq-Term Debt Account Grouo -This is not a fund but rather an account group that is used to account for outstanding ' principal balances of general obligation bonds and other long-term debt not reported in the Proprietary Funds. C. Measurement Focus The accounting and reporting treatment applied to the assets and liabilities ' associated with a fund are determined by its measurement focus. Governmental Funds and Expendable Trust Funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance is considered a measure of "available spendable resources." Governmental Fund operating statements present increases (revenue and other financing sources} and decreases (expenditures and other ' financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses "available spendable resources" during a period. ' Fixed assets used in Governmental Fund Type operations {general fixed assets) are accounted for in the General Fixed Assets Account Group and are recorded therein at historical cost. Public domain ("infrastructure") general fixed assets consisting of roads, bridges, curbs and gutters, streets and sidewalks, ' drainage systems, and lighting systems are excluded from general fixed assets as such items are immovable and of value only to the City. No depreciation has been provided on general fixed assets. ' Long-term liabilities expected to be financed from Governmental Funds are accounted for in the General Long-Term Debt Account Group and not in the ~ Governmental Funds. The General Fixed Assets and General Long-Term Debt Account Groups are not funds and are concerned only with the measurement of financial position. They are not involved with measurement of results of operation. The Proprietary Funds are accounted for on a cost of services or capital maintenance measurement focus. This means that all assets, including fixed assets, and all liabilities, including long-term liabilities, associated with funds' activities are included on the balance sheet. The Proprietary Funds operating statement presents increases and decreases in net total assets. Fixed assets of the Proprietary Funds are recorded therein at historical cost. Depreciation is charged as an expense against operations and accumulated depreciation is reported on the Proprietary Funds balance sheet. Depreciation has been provided over the estimated useful lives using the straight-line method. The estimated useful lives are as follows: _~5_