RIVERTON CITY, UTAH
NOTES
COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2021 Financial Section – Notes to the Financial Statements (continued)
TO THE FINANCIAL STATEMENTS
TABLE OF CONTENTS Note 1 – Summary of Significant Accounting Policies................................................................................... 54 Note 2 – Stewardship, Compliance, and Accountability ............................................................................... 60 Note 3 – Deposits and Investments .............................................................................................................. 61 Note 4 – Restricted Cash and Cash Equivalents ............................................................................................ 62 Note 5 – Interfund Receivables, Payables, and Transfers ............................................................................. 63 Note 6 – Equity Investment in Joint Venture ................................................................................................ 63 Note 7 – Capital Assets ................................................................................................................................. 64 Note 8 – Grants ............................................................................................................................................. 66 Note 9 – Developer and Customer Deposits ................................................................................................. 66 Note 10 – Long-term Liabilities ..................................................................................................................... 66 Note 11 – Conduit Debt Obligations ............................................................................................................. 70 Note 12 – Risk Management ......................................................................................................................... 70 Note 13 – Retirement Plans .......................................................................................................................... 70 Note 14 – Redevelopment Agency of Riverton City ...................................................................................... 78 Note 15 – Riverton Law Enforcement Service Area ...................................................................................... 78 Note 16 – Contingent Liabilities .................................................................................................................... 79 Note 17 – Commitments and Agreements ................................................................................................... 79 Note 18 – Subsequent Events ....................................................................................................................... 79
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Riverton City Corporation (the City) was incorporated on July 3, 1967, as a third-class city under the provisions of the State of Utah and operates under a six-member council form of government with City Manager by ordinance. The governing body consists of six elected officials; a Mayor and five Council Members. Department heads are under the direction of the City Manager. The City provides the following services: • • • • •
General administrative services Public safety Highways and public improvements Street lighting Parks and recreation
• • • • •
Community development Culinary water utility Secondary water utility Sanitation utility Storm water utility
The City’s financial statements are prepared in accordance with Generally Accepted Accounting Principles (GAAP). The Governmental Accounting Standards Board (GASB) is the accepted standards–setting body for establishing accounting and financial reporting principles. The accounting policies of the City conform to accounting principles generally accepted in the United States of America as applicable to governmental units. The more significant accounting policies established by GAAP and used by the City are discussed below.
REPORTING ENTITY In evaluating how to define the City for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in the related GASB 61 pronouncement. The basic, but not the only, criterion for including a potential component unit within the reporting entity is the governing body's ability to exercise oversight responsibility. The most significant manifestation of this ability is financial interdependency and accountability. Other expressions of the ability to exercise oversight responsibility include, but are not limited to, the selection of governing authority, the designation of management, and the ability to significantly influence operations and accountability of fiscal matters. The other criterion used to evaluate potential component units for inclusion or exclusion from the reporting entity is the existence of special financing relationships, regardless of whether the City is able to exercise oversight responsibilities.
