Laserfiche WebLink
7.1.A. - Page 66 , <br /> Notes to the Basic Financial Statements <br /> For the year ended June 30, 2014 <br /> NOTE 1- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <br /> basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. <br /> Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility <br /> requirements have been satisfied. <br /> Other revenues susceptible to accrual include other taxes, intergovernmental revenues, interest, and <br /> charges for services. <br /> Grant revenues are recognized in the fiscal year in which all eligibility requirements are met. Under the <br /> terms of grant agreements, the City may fund certain programs with a combination of cost - <br /> reimbursement grants, categorical block grants, and general revenues. Thus, both restricted and <br /> unrestricted net position may be available to finance program expenditures /expenses. The City's policy <br /> is to first apply restricted resources to such programs, followed by unrestricted resources if necessary. <br /> Certain indirect costs are included in program expenses reported for individual functions and activities. <br /> E. Compensated Absences <br /> In compliance with Governmental Accounting Standards Board Statement No. 16, the City has <br /> established a liability for accrued sick leave and vacation in relevant funds. For governmental activities, <br /> the current liability for the payouts made after June 30, 2014 for those employees retired on or before <br /> June 30, 2014 appears in the respective funds and the long -term liability appears in the government - <br /> wide financial statements. This liability is set up for the current employees at the current rates of pay. <br /> An employee may accumulate vacation up to two years entitlement and sick leave up to 960 or 1,920 <br /> hours depending on the bargaining unit (certain Fire Department employees who work 24 hour shifts <br /> may accumulate up to 2,400 hours of sick leave). <br /> An employee may elect to receive compensation in lieu of sick leave credits for any calendar year with <br /> payment equal to varying amounts from 25% to 50% of the year's unused sick leave, depending upon <br /> the employee's sick leave usage during the year. In addition to sick leave, payouts are made for unused <br /> administrative holidays and accrued compensatory time. <br /> If sick leave and vacation are not used by the employee or paid out during the term of employment, <br /> compensation is payable to the employee at the time of retirement. Such compensation is calculated at <br /> the employee's prevailing rate at the time of retirement or termination. Whereas vacation is <br /> compensated at 100% of accumulated hours, sick leave is compensated at 50% of accumulated hours at <br /> retirement depending upon varying restrictions of the bargaining units. Upon termination only accrued <br /> vacations are compensated. Each year an adjustment to the liability is made based on pay rate changes <br /> and adjustments for the current portion. The general fund is primarily responsible for the repayment of <br /> the governmental portion of the compensated absences. <br /> Individual proprietary funds are responsible for the repayment of the liability attributable to their <br /> respective funds. <br /> 38 <br />