Ord 1993-037 - Laserfiche WebLink

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(l.fj/) :r City of San Marcos, Texas Exhibjr 6 Notes to General Purpose Financial Statements (continued) September 30, 1992 1. Significant Accounting Policies (continued) banks. Investments, other than those of the Deferred Compensation Plan Agency Fund, are stated at cost or amortized cost. Investments of the Deferred Compensation Plan are held by the designated plan trustee and are stated at market. Inventory Inventory is valued at cost based on the fIrst-in, fust-out method of accounting. Inventory in the General Fund consists of expendable supplies held for consumption. The cost of inventOry is recorded as an expenditure at the time individual inventory items are consumed (consumption method). Inventories reported in the General Fund are offset by a fund balance reserve which indicates that they do not represent "available spendable resources" even though they are a component of net cUITent assets. Inventory in the Water and Sewer Fund and Electric Fund consists of partS and maintenance iterÌ1s. .. Accumulated Unpaid Vacation and Sick Pay Amounts Accumulated unpaid compensated absences for vacation and sick leave are accrued when incurred. In proprietary fund types, the accruals are reponed as liabilities and expenses for the year incurred and the liability for governmental funds is recorded in the General Long- Term Debt Account Group since payment of this liability will not be made with expendable available resources. Totals - Memorandum Only Columns Total columns on the general purpose financial statements are captioned "Memorandum Only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position, results of operations, or cash flows in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Imerfund eliminations have not been made in the aggregation of this data. -19-