HomeMy WebLinkAboutNC Comprehensive Report (Finance) (75)CITY OF NATIONAL CITY
Notes to Required Supplementary Information
For the Year Ended June 30, 2012
(1) Budgetary Information
Annual budgets are adopted for the general, special revenue, debt service, and capital
projects funds. All unencumbered appropriations lapse at the end of the fiscal year.
Encumbered appropriations are carried forward in the subsequent fiscal year.
The City Manager is authorized to transfer budgeted amounts within a fund. However,
any revisions that increase the total budget of any fund must be approved by the City
Council. All necessary supplemental appropriations were adopted by the City Council
and are included in the reported data. For the fiscal year ended June 30, 2012,
supplemental appropriations requiring City Council approval were insignificant. The
legal level of control for appropriations is exercised at the fund level.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g.,
purchase orders, contracts) outstanding at year-end are reported as reservations of fund
balances and do not constitute expenditures or liabilities because the commitments will
be honored during the subsequent year.
The following is the budget comparison schedules for the General Fund and all major
special revenue funds.
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