Villisca Municipal Power Plant
Notes to Financial Statements
December 31, 2003
Summary of Significant Accounting Policies
The Villisca Municipal Power Plant is a component unit of the City of Villisca, Iowa, as determined by criteria specified by the Governmental Accounting Standards Board. The Power Plant is governed by a five-member board of trustees appointed by the City Council, which exercises oversight responsibility under this criteria.
The accounts of the Power Plant are organized on the basis of funds, each of which is
considered to be a separate accounting accounted for by providing a separate set
The operations of each
fund are comprise
its receipts, disbursements and balances.
The various funds are classified
and account for the
acquisition, operation and maintenance of governmental
facilities and services supported by user charges.
Basis of Accounting
The Villisca Municipal Power Plant maintains its financial records on the basis of cash
receipts and disbursements and the financial statements of the Power Plant are
receivable, accounts payable
basis of accounting does not give and accrued items. Accordingly, the
do not present financial position and results of operations with U.S. generally accepted accounting principles.
effect to financial funds in
Budgets and Budgetary Accounting
The Villisca Municipal Power Plant prepares a budget on the cash basis of accounting
and submits it to the City Council.
In accordance with the Code of Iowa, the City
Council annually adopts a budget on the
cash basis following required public notice budget may be amended during the year
utilizing similar statutorily prescribed procedures.
Formal and legal budgetary control is based
disbursements, known as functions, not by fund. These functions are public safety, public works, health and social services, culture and recreation, community and economic development, general government, debt service, capital projects and business type activities.