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ORDINANCE NO. 87- 21 <br />INTRODUCED BY: Mayor Carmen & Council as a Whole <br />AN ORDINANCE ESTABLISHING AND DEFINING A <br />GOVERNMENT FUND ACCOUNTING STRUCTURE FOR MAYFIELD <br />V ILLAG E, OH IO, AND DECLARING AN ENIERG ENCY o <br />WHEREP,S, the Auditor of State is phasing in the mandate that <br />local governments prepare an annual financial report using generally <br />accepted accounting principles applicable to governments; and <br />6VHEREAS, the National Counsel on Governmental Accounting, in <br />Statement 1, established a framework for fund accounting by govern- <br />mentsg and <br />WHEREAS, the goal of the Mayor and Council of Mayfield <br />Village is to publish an easily understandable and comprehensive <br />annual financial report; and <br />WHEREAS, the accounting and reporting capabilities of the <br />Village must make it possible both (a) to present fairly and with full <br />disclosure the financial position and results of financial operations <br />of the funds and account groups of the governmental unit in conformity <br />with generally accepted accounting principles; ana (b) to determine <br />and demonstrate compliance with finance related legal and contractual <br />provisions; now, therefore, <br />BE IT ORDAINED BY THE COUNCIL OF MAYFIELD VILLAGE, OHIO, THAT: <br />Section lo For purposes of this Ordinance a fund shall be <br />defined as a fiscal and accounting entity with a self-balancing set of <br />accounts recording cash and other financial resources, together with <br />all related liabilities and residual equities or balances and changes <br />therein which are segregated for the purpose of carrying on specific <br />activities or attaining certain objectives in accordance with special <br />regulations, restrictions and limitationso <br />Section 2. For purposes of this Ordinance when a fund has <br />been established the type of fund will be determined based upon the <br />following categories: <br />A. Government Funds are used to account for general <br />government operations. <br />B. Proprietary Funds are used to account for a government's <br />activities that are similar to the commercial sector. <br />C. Fiduciary Funds are used to account for assets held <br />by a government in a trustee or agent capacity. <br />D. Account Groups are a special classification used to <br />account for the general fixed assets purchased by governmental <br />fund types and general long term debt incurred by most govern- <br />mental fund types.