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City of Louisville <br />Notes to the Financial Statements <br />December 31, 2014 <br />Note 1: Summary of significant accounting policies (continued) <br />D. Assets, liabilities, and net position/fund balance (continued) <br />10. Fund Balances (continued) <br />Assigned: The total amount of encumbrances (outstanding purchase <br />orders) within the General Fund at December 31, 2014 was $242,521. <br />11. Contraband forfeitures <br />In accordance with the Colorado Contraband Forfeiture Act (CRS-16-13-501 <br />to 511) forfeitures from the seizure of contraband are used for the specific <br />purpose of law enforcement activities. These funds are included in the City's <br />General Fund. <br />12. Estimates <br />The preparation of financial statements in conformity with generally <br />accepted accounting principles requires management to make estimates <br />that could affect certain reported amounts and disclosures. Accordingly, <br />actual results could differ from those estimates. <br />13. Comparative Data <br />Certain comparative total data for the prior year has been presented in the <br />accompanying financial statements in order to provide an understanding of <br />changes in the City's financial position and operations. However, complete <br />comparative data in accordance with generally accepted accounting <br />principles has not been presented since its inclusion would make the <br />financial statements unduly complex and difficult to read. <br />Note 2: Stewardship, compliance, and accountability <br />A. Budgetary information <br />Budgets for the governmental funds are adopted on a basis consistent with <br />generally accepted accounting principles (GAAP). Budgets for the proprietary <br />funds are adopted on a basis consistent with GAAP, except that the budgeted <br />expenditures also include capital outlay and bond principal payments and exclude <br />depreciation. Council legally adopts all governmental and proprietary fund <br />budgets. The level on which expenditures may not exceed appropriations is the <br />legally adopted annual operating budget for each fund. All annual appropriations <br />lapse at year end. The City Council may amend the budget by resolution. The <br />City requires all governmental and all proprietary funds adopt an annual budget. <br />48 <br />