Ordinance 2024-611 - Laserfiche WebLink

Home Browse Search

City of Sunny Isles Beach, Florida Management's Discussion and Analysis September 30, 2023 Government -wide Financial Statements: The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private - sector business. The City's government -wide financial statements include the statement of net position and statement of activities. The Statement of Net Position presents information on the assets held, liabilities owed by the City and any deferred inflows and outflows of resources that pertain to a future reporting period. Assets are reported when the City acquires ownership over the assets, they represent current resources that are controlled by the City, and liabilities are reported when they are incurred, they represent current and long-term obligations. The deferred outflows of resources are the consumption of net assets applicable to a future reporting period and they increase net position similar to assets. The deferred inflows of resources are the acquisition of net assets applicable to a future period and they decrease net position similar to liabilities. The difference between the City's total assets, total liabilities and deferred inflows and outflows of resources is net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. In general, as this amount increases it indicates that the financial position of the City is improving over time. The Statement of Activities presents revenues and expenses of the City. The items presented on the statement of activities are measured in a manner similar to the approach used in the private sector in that revenues are recognized when earned and expenses are reported when incurred. Accordingly, revenues are reported even when they may not be collected for several months after the end of the accounting period and expenses are recorded even though they may not have used cash during the current period. Both government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City include general government, public safety, physical environment, transportation, cultural and human services. The business -type activities of the City are the Stormwater operations. The government -wide financial statements can be found on pages 17 and 18 of this report. Fund Financial Statements: Unlike government -wide financial statements, the focus of fund financial statements is directed to specific activities of the City rather than the City as a whole. Except the General Fund, separate funds are established to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into two categories: governmental funds and proprietary funds. D