1988 CAFR - Laserfiche WebLink

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CITY OF RAMSEY, MINNESOTA NOTES TO FINANCIAL STATEMENTS December 31, 1988 Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies for the City of Ramsey conform to generally accepted accounting principles applicable to governmental units. The following is a summary of the more significant policies. A. Principles Used to Determine the Scope of the Governmental Entity For financial reporting purposes, the City's financial statements include all funds, account groups, departments, commissions, and other organizations over which City officials exercise oversight respon- sibility. There are no other organizations that when considered would be included in the financial statements. Oversight responsibility includes such aspects as appointment of governing body members, budget approval, approval of property tax levies, outstanding debt secured by the City's full faith and credit or revenue, and responsibility for funding deficits. B. Fund Accounting The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operation of each entity is accounted for with a separate set of self - balancing accounts consisting of assets, liabilities, fund equity, revenue, and either expenditures or expenses as appropriate. Governmental resources are allocated to and accounted for in indi- vidual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The various funds in the financial statements are grouped into three fund types and seven generic funds that are described as follows: 1) Governmental Fund Types - These funds are used to account for most governmental functions. The funds included in this cate- gory are as follows: a) General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. b) Special Revenue Funds - The Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. c) Debt Service Funds - The Debt Service Funds are used to account for the accumulation of dedicated resources and the payment of principal, interest, and related costs.