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Based on past experience, the City is able to collect almost all of its receivables. <br /> Amounts uncollectible have been immaterial. Based on this history, the City will only <br /> record an allowance for uncollectibles on a case by case basis, if needed. <br /> M. ELIMINATION OF INTERNAL ACTIVITY ON THE STATEMENT OF <br /> ACTIVITIES <br /> The City, as a general rule, eliminates the effect of interfund activity on the government- <br /> wide financial statements. The only interfund activities that will be reported on these <br /> financial statements are those between the two types of activities: governmental and <br /> business-type. <br /> N. APPLICATION OF FASB PRONOUNCEMENTS TO BUSINESS-TYPE <br /> ACTIVITIES <br /> The City generally follows private-sector standards of accounting and financial reporting <br /> issued prior to December 1, 1989 for the government-wide and proprietary fund financial <br /> statements to the extent that those standards do not conflict with or contradict guidance of <br /> the Governmental Accounting Standards Board. The City has the option of following <br /> subsequent private-sector guidance for their business-type activities and enterprise funds, <br /> subject to the same limitation, however, the city elects not to follow subsequent private- <br /> sector guidance. <br /> O. SPECIAL AND EXTRAORDINARY ITEMS <br /> The City's policy regarding the financial reporting for special and extraordinary items is <br /> that it will be reported separately on the government-wide financial statements, if <br /> applicable, in accordance with the definitions provided in GASB #34. <br /> P. GENERAL POLICIES <br /> 1. Checks that don't clear the bank—If a check has not cleared the Bank in six <br /> months, the City reserves the right to stop payment on the check. The city will <br /> issue a new check; however, the stop payment banking fee will be deducted from <br /> the original check amount. <br /> 2. Capital Expenditures—Any employee making a capital expenditure over $2,500 <br /> is required to receive at least two quotes for such expenditure. <br /> 3. Collection Agency—Utility charges that cannot be recovered by certifying the <br /> charges to taxes will be turned over for collection to a collection agency when <br /> they are six-months past due. Delinquent bills not related to utility charges will <br /> also be turned over to a collection agency when they are six-months past due. All <br /> accounts will be reviewed on a quarterly basis. <br /> 1-2-07 Revised ACCOUNTING AND REPORTING POLICIES.doc: 12/18/2006 <br /> 7 <br />