HomeMy WebLinkAboutNC Comprehensive Report (Finance) (34)CITY OF NATIONAL CITY
Notes to the Basic Financial Statements
(Continued)
Summary of Significant Accounting Policies, (Continued)
A separate column representing internal service funds is also presented in these
statements. However, internal service balances and activities have been combined
with the governmental activities in the Government -Wide Financial Statements.
Proprietary funds are accounted for using the "economic resources" measurement
focus and the accrual basis of accounting. Accordingly, all assets and liabilities
(whether current or noncurrent) are included on the Statement of Net Assets. The
Statement of Revenues, Expenses and Changes in Fund Net Assets presents
increases (revenues) and decreases (expenses) in total net assets. Under the
accrual basis of accounting, revenues are recognized in the period in which they
are earned while expenses are recognized in the period in which the liability is
incurred. In these funds, receivables have been recorded as revenue and
provisions have been made for uncollectible amounts. In accordance with GASB
Statement No. 20, Accounting and Financial Reporting for Proprietary Funds
and Other Government Entities that Use Proprietary Fund Accounting, the City
applies all GASB pronouncements currently in effect as well as Financial
Accounting Standard Board Statements and Interpretations, Accounting Principles
Board Opinions and Accounting Research Bulletins of the Committee on
Accounting Procedure issued on or before November 30, 1989, unless they
conflict with GASB pronouncements.
Operating revenues in the proprietary funds are those revenues that are generated
from the primary operations of the fund. All other revenues are reported as
nonoperating revenues. Operating expenses are those expenses that are essential
to the primary operations of the fund. All other expenses are reported as
nonoperating expenses.
The City reported the following major proprietary funds:
Kimball Towers
This fund is used to account for activities relating to the operations of Kimball
Tower, which is used to provide housing to low and moderate income seniors.
Morgan Towers
This fund is used to account for activities relating to the operations of Morgan
Tower, which is used to provide housing to low and moderate income seniors.
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