Laserfiche WebLink
CITY OF SOUTH BEND <br />NOTES TO FINANCIAL STATEMENTS <br />(Continued) <br />Amounts reported as program revenues include (1) charges to customers or applicants for goods, <br />services or privileges provided, (2) operating grants and contributions, and (3) capital grants and <br />contributions. Internally dedicated resources are reported as general revenues rather than as pro- <br />gram revenues. Likewise, general revenues include all taxes. <br />Proprietary funds distinguish operating revenues from nonoperating items. Operating revenues and <br />expenses generally result from providing services and producing and delivering goods in connection <br />with a proprietary fund's principal ongoing operations. The principal operating revenues of the enter- <br />prisefunds are charges to customers for sales and services. Operating expenses for enterprise funds <br />and internal service funds include the cost of sales and services, administrative expenses, and <br />depreciation on capital assets. All revenues and expenses not meeting this definition are reported as <br />nonoperating revenues and expenses. <br />When both restricted and unrestricted resources are available for use, it is the primary government's <br />policy to use restricted resources first, then unrestricted resources as they are needed. <br />D. Assets, Liabilities and Net Assets or Equity <br />1. Deposits and Investments <br />The primary government's cash and cash equivalents are considered to be cash on hand, <br />demand deposits and short-term investments with original maturities of three months or less from <br />the date of acquisition. <br />State statute (IC 5-13-g) authorizes the primary government to invest in securities, including but <br />not limited to, federal government securities, repurchase agreements, and certain money market <br />mutual funds. Certain other statutory restrictions apply to all investments made by local govern- <br />mental units. <br />Nonparticipating certificates of deposit, demand deposits and similar nonparticipating negotiable <br />instruments that are not reported as cash and cash equivalents are reported as investments at <br />cost. <br />Debt securities are reported at fair value. Debt securities are defined as securities backed by the <br />full faith and credit of the United States Treasury or fully insured or guaranteed by the United <br />States or any United States government agency. <br />Open-end mutual funds are reported at fair value. <br />Money market investments that mature within one year or less at the date of their acquisition are <br />reported at amortized cost. Other money market investments are reported at fair value. <br />Investment income, including changes in the fair value of investments, is reported as revenue in <br />the operating statement. <br />2. Interfund Transactions and Balances <br />Activity between funds that are representative oflending/borrowing arrangements outstanding at <br />the end of the fiscal year are referred to as "interfund receivables/payables (i.e., the current and <br />noncurrent portion of interfund loans). All other outstanding balances between funds are reported <br />as "interfund services provided/used." Any residual balances outstanding between the govern- <br />mentalactivities and business-type activities are reported inthe government-wide financial state- <br />ments as "internal balances." <br />49 <br />