05 Audit for FY01-02 - Laserfiche WebLink

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City of Paris, Texas Notes to Financial Statements (Continued) September 30, 2002 II. Stewardship, Compliance and Accountability (Continued) Budgetary Information {Continued) 3. The budget for the next fiscal year is legally enacted by the City Council through passage of an ordinance not later than the twenty-seventh day of the last month of the fiscal year. If the City Council does not enact the budget within this time period, then the budget as submitted by the City Manager becomes the legally authorized budget. 4. Expenditures may not legally exceed appropriations at the department level for each legally adopted annual operating budget. The City Manager may, without Council approval, transfer appro- priation balances from one expenditure account to another within a department or agency of thD City. The City Council, however, must approve any transfer or unencumbered appropriation balances or portions thereof from one department or agency to another. The reported budgetary data has been revised for amendments legally authorized during the year. No supplemental budgetary appropriations were necessary during the year. 5. Annual budgets are legally adopted for the General Fund, Special Revenue Funds, and Debt Service Funds. Budgets for these funds are adopted on a basis consistent with accounting principles generally accepted in the United States of America. The budget for the Capital Projects Funds is legally adopted for specific projects and may exceed one year. Formal budgetary integration is not employed for the proprietary funds. The City adopts an annual, informal budget as a financial plan for all proprietary funds. Although no legal requirement exists, a budget to actual comparison is presented in the Supplementary Schedules. The expendable trust funds include non-budgeted financial activities, which are not subject to an appropriated budget and the appropriation process nor to any legally authorized non- appropriated budget review and approval process. 6. At the close of each fiscal year, any unencumbered appropriation balance (appropriations including prior year encumbrances less current year expenditures and encumbrances) lapse or revert to the undesignated fund balance. III. Detailed Notes on All Funds and Account Groups A. Deposits and Investments At year-end, the City of Paris' carrying amount of deposits (cash and non-negotiable certificates of deposit) was $22,849,538 and the banks' balances were $22,175,230 which are shown below by degree of risk. 22