2006 Comprehensive Annual Financial Report

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CITY OF SOUTH BEND NOTES TO FINANCIAL STATEMENTS (Continued) 9. Fund Equity In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. II. Stewardship, Compliance and Accountability A. Budgetary Information Annual budgets are adopted on the cash basis which is not consistentwith accounting principles gen- erallyaccepted in the United States. All annual appropriations lapse at fiscal year end. Annual bud- getsare adopted for the following governmental funds: General Major governmental funds: Special revenue fund -park and recreation Capital projects fund -county option income tax (COIT) Nonmajor governmental funds: Special revenue funds -motor vehicle highway, recreation nonreverting, community development, local road and street, human rights federal, special events professional sports development Debt service funds -redevelopment bond-studebaker, college football hall of fame debt service Capital projects funds -emergency medical services, professional sports development, park nonreverting capital, cumulative capital development, cumulative capital improvement, economic development income tax, major moves On or before August 31, the City Controller submits to the Common Council a proposed operating budget for the year commencing the following January 1. Prior to adoption, the budget is advertised and public hearings are conducted by the Common Council to obtain taxpayer comments. In September of each year, the Common Council through the passage of an ordinance approves the budget for the next year. Copies of the budget ordinance and the advertisement for funds for which property taxes are levied or highway use taxes are received are sent to the Indiana Department of Local Government Finance. The budget becomes legally enacted after the City Controller receives approval of the Indiana Department of Local Government Finance. The primary government's management cannot transfer budgeted appropriations between object classifications of abudget without approval of the Common Council. The Department of Local Gov- ernment Finance must approve any revisions to the appropriations for any fund or any department of the General Fund. The legal level of budgetary control is by object and department within the fund for the General Fund and by object within the fund for all other budgeted funds. Expenditures did notexceed appropriations forany funds orany departmentswithin the General Fund or within the Park and Recreation Fund, or within any other nonmajor governmental fund which required legally, approved budgets. 52