1268RECITALS:
RESOLUTION NO. 1268
RESOLUTION DESIGNATING THE FUNDS IN THE WATER/SEWER FUND AS
ACCOUNTS IN THE WATER/SEWER FUND
1.The Water/Sewer Fund is an Enterprise Fund and is accounted for as a sin
gle entity in the financial statements of the City of Moses Lake.It is
a classified utility fund and is accounted for with the NARUC chart of
accounts.
2.The fund divisions of the Water/Sewer Fund are therefore not required to
be in conformance with the accounting principals set by the State Audi
tor's Office Bars Manual.
3.The following is an excerpt from BARS Manual Vol 1,Pt 3,Ch 1,page 3
which discusses separate funds for utility operations:
"Note:Separate funds are not required for bond redemption,con
struction,reserves,or deposits,for any utility that is accounted
for on the full accrual basis,using either BARS accounts or a na
tionally recognized utility chart of account such as FERC or NARUC.
Separate funds are not required even through bond covenants may
stipulate a "bond reserve fund",etc.The bond covenant use of the
term "fund"is not the same as the use in governmental accounting.
For bond covenants,"fund"means only a segregation or separate ac
count,not a self-balancing set of accounts."
4.The designation of the funds to accounts will make no change in the pres
ent accounting for the Water/Sewer Fund by the City of Moses Lake.It is
represented only to be a correction in terminology as they are presently
reported as if they were accounts.
RESOLVED:
1.That all funds in the Water/Sewer Fund presently numbered 411 through 482
be designated as accounts in the Water/Sewer Fund which is number 410.
Adopted by the City Council on May 27,1986
Mayor
ATTEST: