2006 Performance Based Budget - Laserfiche WebLink

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Revenn~e Funds, three Itaternal Service Funds, ten Capital and Debt Service Funds, two Trust and Agency Funds and nine Enterprise Funds. A description of all these fiords can be found later in this section. The accounting and financial reporting treatment applied to a fiord is determined by its measurement focus. All governmental fiends and expendable trust fiords are accounted for using a "current financial resources" measurement focus. Within this rrreasurement focus, only current assets and current liabilities generally are included on the balance sheet. Operating statemens of these fiends present increases {i.e., revenues and other financing sources) and decreases {i.e., expenditures and other financing uses) in net current assets. All proprietary funds and pension trust fiends are accounted for an a glow of economic resources" measurement focus. With this measurement focus, all assets and all liabilities associated with the operation of these funds are included in the balance sheet, Fwad equity balances of proprietary funds {i.e., net total assets) reflect the present increases {revenues) and decreases (expenses} of the fiords net total assets. Since 2pQ2, the City's financials have implemented the new reporting model GASB 34. Under this model the Citywide statements are full accrual and fund statements are still reported under the modified accneal basis. The modified accrual basis of accounting is used by all governmental f~uad types, expendable trust funds and agency funds. Under the modified accrual basis of accounting, revenues are recognized when susceptible to accrual {i.e., when they became bath measurable and available). "Measurable" means the amourrt of the transaction can be determined and "available" means collectible within the current period or snnn enough thereafter to be used to pay liabilities of the current period. Expenditures are recorded when the related fund liability is incurred. The accrual basis of accounting is utilized by proprietary fiord types and pension trust funds. Under this method, revenues are retarded when earned and expenses are recorded at the time the liabilities are incurred The City's budget is adapted on a cash basis which is not consistent with the above described generally accepted accounting principles. Annual appropriated budgets are adapted fi3r the thirty- three funds as mentioned above. All annual appropriations lapse at the end of the fiscal year. 'The level of control at which expenditures may not exceed appropriations is by object classification within the fiord, except for the General Fund which is by object classification within the department of the fund The object classifications are as follows: personal services, supplies, other services, other uses, and capital expenditures. The City's management cannot transfer appropriations within a budget without approval of the Common Council, Any revisions that alter the total expenditures by any fiend or any department of the General Fund must be approved by the Common Council and the Departinent of Lncai Government & Finance. As a result of preparing the City budgets on a cash basis {non-GAAP} as required by state law and also reporting financial results using either the modified accrual basis or the accrual basis {GAAI'), major differences exist when compar~g budgets to the financial statements of the City. The main differences between the cash basis (budgetary non-GAAP basis) and the accrual basis {GAAP) fall within these three categories: B~2