Laserfiche WebLink
6.G. - PaZff Rff Of $i7 <br />City <br />Notes to the Basic Financial Statements <br />For the fiscal year ended June 30, 2018 <br />NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) <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, 2018 for those employees retired on or before <br />June 30, 2018 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 (with the exception that Battalion Chiefs who work 24 hour <br />shifts 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 separation. 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 />F. Cash and Cash Equivalents <br />The City pools cash resources from all funds in order to facilitate the management of cash. The balance <br />in the pooled cash account is available to meet current operating requirements. Cash in excess of <br />current requirements is invested in various interest-bearing accounts and other investments for varying <br />terms. <br />In accordance with GASB Statement No. 40, Deposit and Investment Disclosures (Amendment of GASB <br />No. 3), certain disclosure requirements for Deposits and Investment Risks were made in the following <br />areas: <br />a. Interest Rate Risk <br />b. Credit Risk <br />Overall <br />Custodial Credit Risk <br />Concentrations of Credit Risk <br />In addition, other disclosures are specified including use of certain methods to present deposits and <br />investments, highly sensitive investments, credit quality at year-end, and other disclosures. <br />41 247 <br />