AgdaPkt 2007-12-17 - Laserfiche WebLink

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NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES�CONTINUED� E. Compensated Absences In compliance with Governmental Accounting Standards Board Statement No. 16, the City has established a liability for accrued sick leave and vacation in relevant funds. For governmental activities, the current liability for the payouts made after June 3 0, 2007 for those employees retired on or before June 3 0, 2007 appears in the respective funds and the long-term liability appears in the government-wide financial statements. This liability is set up for the current employees at the current rates of pay. An employee may accumulate vacation up to two years entitlement and sick leave up to 960 or 1,200 hours depending on the bargaining unit (Fire Department employees who work 24 hour shifts may accumulate up to 2,400 hours of sick leave). An employee may elect to receive compensation in lieu of sick leave credits for any calendar year with payment equal to varying amounts from 25%to 50% of the year's unused sick leave, depending upon the employee's sick leave usage during the year. In addition to sick leave, payouts are made for unused administrative holidays and accrued compensatory time. If sick leave and vacation are not used by the employee or paid out during the term of employment, compensation is payable to the employee at the time of retirement. Such compensation is calculated at the employee's prevailing rate at the time of retirement or termination. Whereas vacation is compensated at 100% of accumulated hours, sick leave is compensated at 50% of accumulated hours at retirement depending upon varying restrictions of the bargaining units. Upon termination only accrued vacations are compensated. Each year an adjustment to the liability is made based on pay rate changes and adjustments for the current portion. The general fund is primarily responsible for the repayment of the governmental portion of the compensated absences. Individual proprietary funds are responsible for the repayment of the liability attributable to their respective funds. F. Cash arld Cash Equivalents The City pools cash resources from all funds in order to facilitate the management of cash. The balance in the pooled cash account is available to meet current operating requirements. Cash in excess of current requirements is invested in various interest-bearing accounts and other investments for varying terms. In accordance with GASB Statement No. 40, Deposlt and Investment Dlsclosures(Amendment of GASB No. �, certain disclosure requirements for Deposits and Investment Risks were made in the following areas: • Interest Rate Risk • Credit Risk o Overall o Custodial Credit Risk o Concentrations of Credit Risk In addition, other disclosures are specified including use of certain methods to present deposits and investments,highly sensitive investments, credit quality at year-end, and other disclosures. In accordance with GASB Statement No. 31, Accounting and Flnanclal Reporting for Certaln Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. 33