HomeMy WebLinkAboutNC Comprehensive Report (Finance) (29)CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
For the Year Ended June 30, 2012
11) Summary of Significant Accounting Policies
The basic financial statements of the City of National City, California (City) have been
prepared in conformity with generally accepted accounting principles (GAAP) as applied
to governmental agencies. The Governmental Accounting Standards Board (GASB) is
the accepted standard setting body for establishing governmental accounting and
financial reporting principles. The more significant of the City's accounting policies are
described below.
A. Reporting Entity
The City was incorporated September 17, 1887 under the general laws of the State
of California. The City operates under a Council -Manager form of government
and provides basic local governmental services including public safety (police and
fire), maintenance and construction of public improvements, cultural, recreation,
planning, zoning, transportation, health services and general administration. In
addition, the City operates the Community Development Commission (including
Morgan Towers and Kimball Towers Enterprise Funds).
The financial reporting entity consists of (a) the primary government, the City, (b)
organizations for which the primary government is financially accountable, and
(c) other organizations for which the primary government is not accountable, but
for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity's financial
statements to be misleading or incomplete.
As required by GAAP, these basic financial statements present the City and its
component units, entities for which the City is considered to be financially
accountable. Blended component units, although legally separate entities are, in
substance, part of the City's operations , and data from these units are combined
with data of the City. Each blended component unit has a June 30 year-end. The
City had no discretely presented component units. The following entities are
reported as blended component units:
Community Development Commission of the City of National City - The
Community Development Commission of the City of National City (the
"CDC") was established in April 1967 pursuant to provisions of the
California Health and Safety Code. The CDC was created to undertake
and carry out the redevelopment of certain areas within the City which the
CDC has determined to be blighted areas by encouraging development of
residential, commercial, industrial, recreational and public facilities and to
assist neighborhood redevelopment through residential property
improvement loans and housing assistance payments to low and moderate
income earners. The City Council is the Governing Board of the CDC. As
described in more detail at Note 15, the Community Development
Commission was dissolved on February 1, 2012 as a result of legislation.
There are no separate financial statements available.
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