WS - D - Tiffin FS - FY 2023

City of Tiffin Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation (Continued) The Cash Basis Statement of Activities and Net Position demonstrates the degree to which the direct disbursements of a given function are offset by program receipts. Direct disbursements are those clearly identifiable with a specific function. Program receipts include: 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function, and 2) grants, contributions, and interest on investments restricted to meeting the operational or capital requirements of a particular function. Property tax and other items not properly included among program receipts are reported instead as general receipts. Fund Financial Statements – Separate basic financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The City reports the following major governmental funds: The General Fund – This fund is the general operating fund of the City. All general tax receipts and other receipts not allocated by law or contractual agreement to some other fund are accounted for in this fund. From the fund are paid the general operating disbursements, the fixed charges, and the capital improvement costs not paid from other funds. The Road Use Tax Special Revenue Fund – This fund is used to account for road use tax and related activity. The Employee Benefits Special Revenue Fund – This fund is utilized to account for property tax to be used for nonproprietary fund payroll taxes and employee fringe benefits. The LOST – Assessment Reduction Special Revenue Fund – This fund is utilized to account for sales tax collections related to Assessment Reduction and the related expenditures. The Tax Increment Financing Special Revenue Fund – This fund is utilized to account for tax increment financing revenue and the related expenditures. The FEMA Special Revenue Fund – This fund is utilized to account for FEMA grants and related expenditures. The Debt Service Fund – This fund is utilized to account for property tax and other receipts to be used for the payment of interest and principal on the City's general long-term debt. The Capital Projects Fund – This fund is used to account for all resources used in the acquisition and construction of capital facilities. The City reports the following major proprietary funds: The Enterprise, Water Fund – This fund accounts for the operation and maintenance of the City's water system. 16