1983-03-02 Regular Meeting - Laserfiche WebLink

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e e . CITY OF LA PORTE Page 2 of 12 ,- NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1982 .. . t Internal Service Funds Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other de- partments or agencies of the City, or to other governments, on a cost-reimbursement basis. The City,has created a Motor Pool Replace- ment Internal Service Fund by a residual equity transfer of $612,927 from the General Fund. The contribution has been treated as contri- buted capital by the Motor Pool Replacement Internal Service Fund. The fund will provide for vehicle replacement and will rent vehicles to the various departments of the City to provide for continuing replacement of City vehicles. The City contemplates transferring replacement vehicles from the General Fixed Assets Account Group and the Utility Fund and charging rental fees in FYE 1984. Fiduciary Funds Trust Funds - The La Porte Volunteer Firemens' Pension Fund as of July 1, 1981 has been transferred to and administered by the State Firemens' Relief and Retirement Fund. The City presently maintains no funds or accounts for the City's Firemen. -. Trust and Agency Funds - Trust and Agency Funds are used to account for assets held by the City in a trustee capacity or as an agent for private organizations and for other governments. These include expendable trust, nonexpendab1e trust, pension trust and agency funds. Nonexpendab1e trust and pension trust funds are accounted for in essentially the same manner as proprietary funds since capital maintenance is critical. Expendable trust funds are accounted for in essentially the same manner as governmental funds. Agency funds are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The City has no trust or agency fund at the present time. . B. FIXED ASSETS AND LONG-TERM LIABILITIES The accounting and reporting treatment applied to the fixed assets and long term liabilities associated with a fund are deter- mined by its measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally in- cluded on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present in- creases (revenues and other financing sources) and decreases (ex- penditures and other financing uses) in net current assets. Accord- ingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. . -12- -.