05 Audit for FY01-02 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial Statements (Continued) September 30, 2002 I. Summary of Significant Accounting Policies {Continued) D. Other -- 1. Memorandum Only - Total Columns The general-purpose financial statements show the basic financial statements of the City by providing a combined overview of financial position, results of operations, and cash flows of the City. The total "Memorandum Only" columns in these statements are presented for overview _ information purposes only and are not meant to fairly present financial position, results of operations, or cash flows for the City as a whole in conformity with accounting principles generally accepted in the United States of America. During the year ended September 30, 2001, a pronouncement by the Govern- mental Accounting Standards Board became effective which requires the -- recognition of sales tax revenue when imposed. As a result, retained earnings at the beginning of the year have been adjusted to recognize this estimated receivable from the prior year. 2. Comparative Data Comparative total data for the prior year have been presented in selected sections of the accompanying financial statements in order to provide an understanding of the changes in the City's financial position and operations. 3. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenditures or expenses during the reporting period. Actual results could differ from those estimates. _ II. Stewardship, Compliance and Accountability Budgetary Information The City Council adheres to the following procedures in establishing the budgets reflected in the financial statements: -- 1. At least thirty days prior to the beginning of each fiscal year, the City Manager submits to the City Council a proposed budget for the fiscal year beginning on the following October 1. The _ operating budget which represents the financial plan for the ensuing fiscal year includes proposed expenditures and the means of financing them. -- 2. Public hearings are conducted at which all interested persons' comments concerning the budget are heard.