2001 Comprehensive Annual Financial Report

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• • • • CITY GF SOUTH BEND, INDIANA NOTES TOGENERAL-PURPOSE FINANCIAL STATEMENTS Continued} During 2441, the Special Funds Board of Managers provided $1,269,694 to the City's Century Center and $231,188 to the City's College Football Hall of Fame, both enterprise funds, to finance operating costs. D. Fund Accounting The City uses funds and account groups to report on its financial position and the results of its operations. Fund accounting is designed to demonstrate legal compliance and to aid financial management by segregating transactions related to certain governmental functions oractivities. A fund is a separate accounting entity with a self balancing set of accounts. An account group, on the other hand, is a f nancial reporting device designed to provide accountability for certain assets and liabilities that are not recorded in the funds because they do not directly affect net expendable available financial resources. The City has the following fund types and account groups: Governmen#al funds are used to account for all or most of a government's general activities, including the collection and disbursement of earmarked monies especial revenue funds}, the servicing of general long-term debt debt service funds}, and the acquisition or construction of general fixed assets capital projects funds}. The general fund is used to account for all activi- ties of the general government not accounted for in some ether fund. Proprietary funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful to sound financial administration. Goods or services from such activities are provided to outside parties enterprise funds} or to other departments or agencies primarily within the government internal service funds}. Fiduciary funds are used to account for assets held on behalf of outside parties, including other governmental units, or on behalf of other funds within the same governmental unit. When these assets are held under the terms of a formal trust agreement, either a pension trust fund or an expendable trust fund is used. The term "expendable" means the government is not under an obligation to maintain the trust principal. Agency funds generally are used to account for assets that the government holds on behalf of others as their agent. The general fixed assets account group is used to account for fixed assets not accounted for in proprietary or trust funds. The general tong-term debt account group is used to account for general long-term debt and certain other liabilities that are not specific liabilities of proprietary ar trust funds. E. Basis of Accounting The accounting and financial reporting treatment applied to a fund is determined by its meas- urementfocus. All governmental funds and expendable trust funds are accounted for using a current financial resources measurement focus. Within this measurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statements of these funds present increases ~i.e., revenues and other financing sources} and decreases ~i.e., expenditures and other financing uses} in net current assets. 15