Ordinance 2024-611 - Laserfiche WebLink

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CITY OF SUNNY ISLES BEACH, FLORIDA NOTES TO FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) N. COMPENSATED ABSENCES The City's policy is to permit employees to accumulate earned but unused sick, as well as vacation pay benefits, limited to certain maximums, based on length of service. For certain employees, the City also grants compensatory time. All vacation, sick and compensatory time is accrued when incurred in the government -wide and proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. O. LONG-TERM OBLIGATIONS In the government -wide financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities or business -type activities. Bond premiums and discounts are deferred and amortized over the life of the bonds using the straight-line method, which doesn't significantly differ from the effective interest method. Discounts and premiums on bonds payable are presented as an adjustment of the face amount of bonds payable. Bond issuance costs are expensed as incurred. In the fund financial statements, governmental fund types recognize bond premiums and discounts during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources, while discounts on debt issuances are reported as other financing uses. Bond issuance costs are reported as expenditures at issuance. P. DEFERRED OuTFLOWs/INFLOWs oFRESOURCEs In addition to assets, the statement of net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has two items that qualify for reporting in this category as deferred outflow of resources. An item related to the Employment Retirement System (Note 7) and an item related to the Other Post -Employment Benefits (Note 8). In addition to liabilities, the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until then. The City has five types of items that qualify for reporting in this category. 33