2001 Comprehensive Annual Financial Report

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CITY OF SOUTH BEND, INDIANA NOTES TOGENERAL-PURPOSE FINANCIAL STATEMENTS Continued} The collection also includes the corporate archives of the Studebaker Corporation which were donated to the museum by a university which had originally received the Studebaker archives from the Studebaker-Worthington Company. In addition, the collection includes vehicles and other materials awned by the Studebaker National Museum, Inc., and vehicles and other mate- rials on loan from various private individuals. Inconformity with the practice followed by many museums, the collection is not included in the General Fixed Asset Account Group of the City of South Bend. If the collection were to be included in the General Fixed Asset Account Group, it would be valued at the fair market value FMV} at the date received by donation or at the actual historical cyst at the date purchased. The original vehicle collection was donated tv the City in 1966 FMV not known} and had a FMV of $561,500 in 1986. No values are known for subsequently acquired vehicles or for parts and supplies. The Packard Motor Car Company Patents, Studebaker Gorporation Patents and the Studebaker Corporation Archives FMV at the time donated are not known. Fair market values known are $72,290 at September 1,1909; $38,759 at March 7,1911; and $311,791 at July 15, 1968; respectively. No purchase of additional collection items were made, no donations of collection items were received, and no dispositions of collection items were made by the City in 2001. Assets in the general fixed assets account group are not depreciated. Depreciation of all exhaustible fixed assets used by proprietary funds is charged as an expense against their operations. Accumulated depreciation is reported on proprietary fund balance sheets. Depreci- ation has been provided using a composite rate based on a straight-line method over the aver- age service life of the property as follows: Buildings 50 to fifi Years Improvements 5o to 100 Years Equipment 5 to 40 Years Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The amount of interest to be capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds over the same period. M. Long-Term Obligations Long-term debt is recognized as a liability of a governmental fund when due or when resources have been accumulated in the debt service fund for payment early in the following year. For other long-term obligations, only that portion expected to be fnanced from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is reported in the general long-term debt account group. For governmental fund types, bond premiums and discounts, as well as issuance costs, are rec- ognizedduring the current period. Bond proceeds are reported as other financing sources net of the applicable premium or discount. Issuance costs, whether or not withheld from the actual net 19