WS - D - Tiffin FS - FY 2023

City of Tiffin Notes to Basic Financial Statements NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) E. Budgets and Budgetary Accounting The budgetary comparison and related disclosures are reported as Other Information. During the year ended June 30, 2023, disbursements exceeded budgeted amounts in the capital outlay function. NOTE 2 – CASH AND POOLED INVESTMENTS The City's deposits in banks at June 30, 2023, were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to ensure there will be no loss of public funds. The City is authorized by statute to invest public funds in obligations of the United States government, its agencies and instrumentalities; certificates of deposit or other evidences of deposit at federally insured depository institutions approved by the City Council; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; certain registered open-end management investment companies; certain joint investment trusts; and warrants or improvement certificates of a drainage district. The City had no investments meeting the disclosure requirements of Governmental Accounting Standards Board Statement No. 72. Custodial Credit Risk – Deposits: This is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City has a policy to only make deposits in the State of Iowa where deposits are covered by federal depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. The City's deposits in banks at June 30, 2023, were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter provides for additional assessments against the depositories to insure there will be no loss of public funds. The City had $4,045,179 in certificates of deposit, $4,482,391 in checking and savings accounts at June 30, 2023. NOTE 3 – LONG-TERM DEBT A summary of changes in bonds and notes payable for the year ended June 30, 2023, is as follows: Beginning Ending Balances Increases Decreases Balances Governmental activities General obligation bonds $ 20,410,000 $ - $ 1,655,000 $ 18,755,000 Business type activities Water revenue notes 22,400 - 22,400 - Sewer revenue notes 7,476,412 - 419,588 7,056,824 Business-type activities total $ 7,498,812 $ - $ 441,988 $ 7,056,824 18