b"City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 Government-wide Financial Statements The statement of net position and the statement of activities display information about the City as a whole.These statements include the financial activities of the primary government, except for fiduciary funds.The activity of the internal service fund is eliminated to avoid doubling up revenues and expenses.The statements distinguish between those activities of the City that are governmental and those that are considered business-type.Thestatementofnetpositionpresentsthefinancialconditionofthegovernmentalandbusiness-type activities of the City at year-end.The statement of activities presents a comparison between direct expenses andprogramrevenuesforeachprogramorfunctionoftheCitysgovernmentalactivitiesandforthe business-type activities of the City.Direct expenses are those that are specifically associated with a service, program or department and therefore clearly identifiable to a particular function.Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operational or capital requirements of a particular program and interest earned on grants that is required to be used to support a particular program.Revenues which are not classified as programrevenuesarepresentedasgeneralrevenuesoftheCity,withcertainlimitedexceptions.The comparisonofdirectexpenseswithprogramrevenuesidentifiestheextenttowhicheachgovernmental program or business activity is self-financing or draws from the general revenues of the City.FundFinancialStatementsDuringtheyear,theCitysegregatestransactionsrelatedtocertainCity functionsoractivitiesinseparatefundsinordertoaidfinancialmanagementandtodemonstratelegal compliance.Fund financial statements are designed to present financial information of the City at this more detailed level.The focus of governmental and enterprise fund financial statements is on major funds.Each major fund is presented in a separate column.Nonmajor funds are aggregated and presented in a single column.Theinternalservicefundispresentedinasinglecolumnonthefaceoftheproprietaryfund statements.Fiduciary funds are reported by type.Fund AccountingThe City uses funds to maintain its financial records during the year.A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts.There are three categories of funds:governmental, proprietary and fiduciary.GovernmentalFundsGovernmentalfundsarethosethroughwhichmostgovernmentalfunctionsare financed.Governmentalfundreportingfocusesonthesources,usesandbalancesofcurrentfinancial resources.Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used.Current liabilities are assigned to the fund from which they will be paid. Thedifferencebetweengovernmentalfundassetsanddeferredoutflowsofresourcesandliabilitiesand deferred inflows of resources is reported as fund balance.The following are the City's major governmental funds:General FundThe general fund accounts for and reports all financial resources except those required to be accounted for in another fund.The general fund balance is available to the City for any purpose provided it is expended or transferred according to the general laws of Ohio.Master Capital FundThe master capital fund accounts for and reports, most significantly, the portion ofmunicipalincometaxcommittedbyCouncilforthepurposeofimproving,constructing, maintaining, and purchasing those items necessary to enhance the operation of the City.The other governmental funds of the City account for and report grants and other resources whose use is restricted, committed, or assigned to a particular purpose. - 32 33 -"