2001 Comprehensive Annual Financial Report

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• CITY OF SOUTH BEND, INDIANA NOTE TO GENERAL-PURPOSE FINANCIAL STATEMENTS (Continued) may be paid in two equal installments which become delinquent if not paid by May 10 and November 10, respectively. All property taxes collected by the County Treasurer for distribution were distributed to the City prior to December 31. Delinquent property taxes outstanding at year end for governmental andlor proprietary funds, ne# of allowances for uncollectible accounts, are recorded as a receivable with an offset to deferred revenue since the amounts are not con- sidered available. J. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds for lendinglbvrrowing arrangements and goods provided or services rendered. Transactions between funds that are representative of lendinglborrowing arrangements outstanding at the end of the fiscal year are referred to as either "interfund receivableslpayables" ~i.e., the current por- tion of interfund loans} or "advances tolfrom otherfunds" 4i.e., the noncurrent portion of interfund transactions.} All other outstanding balances between funds are reported as Adue tolfrom other funds." See Note 9 for further disclosure of Interfund balances. K. Inventories Inventories are valued using an average cost method and consist of maintenance supplies and replacement parts held for consumption. The cost is recorded as an expenditure in govern- mentaffunds and as an expense in proprietary funds at the time individual inventory items are consumed. L. Fixed Assets General fixed assets are not capitalized in the funds used to acquire or construct them. Instead, capital acquisition and construction are reflected as expenditures in governmental funds, and the related assets are reported in the general fixed assets account group. All purchased fixed assets are valued at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated fixed assets are valued at their fair market value on the date received. The cost of normal maintenance and repairs that do not add to the value of the asset or mate- rially extend asset lives are not capitalized. However, improvements are capitalized. Public domain infrastructure}general fixed assets consisting of roads, bridges, curbs and gut- ters,streets and sidewalks, drainage systems and lighting systems are not capitalized, as these assets are immovable and of value only to the City. The Studebaker National Museum building and the Studebaker collection are owned by the City of South Bend and operated on behalf of the City by the Studebaker National Museum, Inc., a nonprofit corporation. The collection of the museum consists of various automobiles and other vehicles, original patents and related materials forthe Studebakerand Packard Motor CarCompanies, and vari- ousother related parts, supplies, and other materials donated to the City bythe Studebaker Cor- poration, and its corporate successors, as well as by other private companies and individuals. 18