11.03 - Update Accounting and Reporting Policies

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Cash and cash equivalents include: cash on hand, demand deposits, and short-term investments with original maturities of 3 months or less from the date of acquisition. L. ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES Based on past experience,the City is able to collect almost all of its receivables. Amounts uncollectible have been immaterial. Based on this history, the City will only record an allowance for uncollectibles on a case by case basis, if needed. M. ELIMINATION OF INTERNAL ACTIVITY ON THE STATEMENT OF ACTIVITIES The City, as a general rule, eliminates the effect of interfund activity on the government- wide financial statements. The only interfund activities that will be reported on these financial statements are those between the two types of activities: governmental and business-type. N. APPLICATION OF FASB PRONOUNCEMENTS TO BUSINESS-TYPE ACTIVITIES The City generally follows private-sector standards of accounting and financial reporting issued prior to December 1, 1989 for the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. The City has the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to the same limitation; however,the city elects not to follow subsequent private- sector guidance. O. SPECIAL AND EXTRAORDINARY ITEMS The City's policy regarding the financial reporting for special and extraordinary items is that it will be reported separately on the government-wide financial statements, if applicable, in accordance with the definitions provided in GASB #34. P. GENERAL POLICIES 1. Checks that don't clear the bank—If a check has not cleared the Bank in six months,the City reserves the right to stop payment on the check. The city will issue a new check; however,the stop payment banking fee will be deducted from the original check amount. This deduction will not apply to payroll checks. 2. Capital Expenditures—Any employee making a capital expenditure over$5,000 $2,500 is required to receive at least two quotes for such expenditure. 3. Collection Agency—Utility charges that cannot be recovered by certifying the charges to taxes will be turned over for collection to a collection agency when they are three-months si-x—menths past due. Delinquent bills not related to utility 12-1-08 ACCOUNTING AND REPORTING POLICIES (amended).doc: 11/18/2008 7