2012 Comprehensive Annual Financial Report - the City of Tukwila

More documents

Recommendations

Info

CITY OF TUKWILA: 2012 CAFRNOTES TO THE FINANCIAL STATEMENTSProprietary funds distinguish operating revenues and expenses from non-operating items. Operatingrevenues and expenses generally result from providing services and producing and delivering goods inconnection with a proprietary fund’s principal ongoing operations. The principal operating revenues ofthe City’s enterprise and internal service funds are charges to the City’s customers for sales andservices. Operating expenses for the enterprise funds and internal service funds include the cost ofsales and services, administrative expenses, and depreciation on capital assets. All revenues andexpenses not meeting this definition are reported as non-operating revenues and expenses. Asdescribed further below, there are two fund types in this category-enterprise and internal service.Restricted assets shown in the government-wide financial statements and the proprietary funds balancesheet include monies reserved for payment of revenue bond debt, and deposits held for utility and golfcourse customer accounts. When both restricted and unrestricted resources are available for use, it isthe City’s policy to use restricted resources first, then unrestricted resources as they are needed.The City’s Enterprise Funds account for utility and golf course operations which are self-supportedthrough user charges. The utilities are financed and operated like a private business enterprise whichrequires periodic determination of revenues earned, expenses incurred, and net income for capitalmaintenance, public policy, management control and accountability. The City’s major enterprise fundsare as follows:Water Utility Fund accounts for operations and capital improvements to provide waterservices to the City.Sewer Utility Fund accounts for operations and capital improvements to providesanitary sewer services to the City.Foster Golf Course Fund is used to account for the operation, maintenance, andimprovements of the municipal golf course facility.Surface Water Utility Fund accounts for the operations and capital improvements forthe City’s storm drainage and surface water management function.The City has three Internal Service Funds. The Equipment Rental Fund is used to account for the costsof maintaining and replacing all City vehicles and auxiliary equipment. All equipment costs, includingdepreciation, are factors in calculating the rates charged to each user department. The Insurance andInsurance – LEOFF I Funds are used to account for the costs of the City’s self-insured medical plan foractive employees and retired LEOFF I employees respectively. Medical and dental costs for coveredemployees are charged to the respective user departments. All premiums, medical and dental costsand ancillary charges are included.Fiduciary FundsFiduciary Funds account for assets held by the City in a trustee capacity or as an agent for individuals,private organizations, other governments, and other funds. The City has two Fiduciary Funds,Firemen’s Pension Trust Fund and Agency Fund. The Firemen’s Pension Trust Fund is accounted for inessentially the same manner as Proprietary Funds. The Agency Fund is custodial in nature (assetsequal liabilities) and does not involve a measurement of results of operations.54
CITY OF TUKWILA: 2012 CAFRNOTES TO THE FINANCIAL STATEMENTSD. Measurement FocusGovernment-wide Financial StatementsThe government-wide financial statements are prepared using the economic resources measurementfocus. All assets and liabilities associated with the operation of the City are included on the Statementof Net Position.Fund Financial StatementsAll governmental funds are accounted for using a flow of current financial resources measurementfocus. With this measurement focus, only current assets and current liabilities generally are included onthe balance sheet. The statement of revenues, expenditures and changes in fund balances reports onthe sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and otherfinancing uses) of current financial resources. This approach differs from the manner in which thegovernment activities of the government-wide financial statements are prepared. Governmental fundfinancial statements therefore include a reconciliation with brief explanations to better identify therelationship between the government-wide statements and statements for governmental funds.Like the government-wide statements, all proprietary fund types are accounted for on a flow ofeconomic resources measurement focus. All assets and all liabilities associated with the operation ofthese funds are included on the statement of net position. The statement of changes in fund netposition presents increases (i.e., revenues) and decreases (i.e., expenses) in net total assets. Thestatement of cash flows provides information about how the City finances and meets the cash flowneeds of its proprietary activities.Fiduciary funds are reported using the economic resources measurement focus.E. Basis of AccountingBasis of accounting refers to the recognition of revenues and expenditures or expenses in the accountsand reporting them in the financial statements. Government-wide financial statements are preparedusing the accrual basis of accounting. Governmental funds use the modified accrual basis ofaccounting. Proprietary and fiduciary funds use the accrual basis of accounting.Revenues – Exchange and Non-exchange TransactionsRevenue resulting from exchange transactions, in which each party gives and receives essentiallyequal value, is recorded on the accrual basis when the exchange takes place. The modified accrualbasis of accounting is followed in all governmental funds of the City. Under the modified accrual basisof accounting, revenues are recorded when susceptible to accrual, i.e., both measurable and available.“Measurable” means the amount of the transaction can be determined and “available” means collectiblewithin the current period or soon enough thereafter to pay current liabilities. For the City, availablemeans expected to be received within sixty (60) days of year-end. The primary accrued revenues thatmeet these criteria are property, sales and utility taxes.Non-exchange transactions, in which the City receives value without directly giving equal value inreturn, include property taxes, sales and use taxes, admission taxes, gambling taxes, utility taxes,hotel/motel taxes, grants, entitlements, and donations. These revenues are on an accrual basis. On theaccrual basis, the revenue is recognized in the period in which the income is earned. Revenue fromproperty taxes is recognized in the fiscal year for which the taxes are levied. (See Note 4 onreceivables).55
Page 6 and 7:
CITY OF TUKWILA: 2012 CAFRTABLE OF
Page 8:
CITY OF TUKWILA: 2012 CAFRADMINISTR
Page 11 and 12: CITY OF TUKWILA: 2012 CAFRLETTER OF
Page 17 and 18: CITY OF TUKWILA: 2012 CAFRAUDITOR
Page 19 and 20: CITY OF TUKWILA: 2012 CAFRAUDITOR
Page 21 and 22: CITY OF TUKWILA: 2012 CAFRMANAGEMEN
Page 37 and 38: CITY OF TUKWILA: 2012 CAFRBASIC FIN
Page 57 and 58: CITY OF TUKWILA: 2012 CAFRNOTES TO
Page 59: CITY OF TUKWILA: 2012 CAFRNOTES TO
Page 109 and 110: CITY OF TUKWILA: 2012 CAFRREQUIRED
Page 111 and 112:
CITY OF TUKWILA: 2012 CAFRREQUIRED
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
CITY OF TUKWILA: 2012 CAFRFUND FINA
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
CITY OF TUKWILA: 2012 CAFRSTATISTIC
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
show all

2012 Comprehensive Annual Financial Report - the City of Tukwila

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?