b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 Proprietary FundsProprietary fund reporting focuses on the determination of operating income, changes in net position, financial position and cash flows.Proprietary funds are classified as either enterprise or internal service. Enterprise Funds Enterprise funds may be used to account for any activity for which a fee is charged to external users for goods or services.The following are the Citys major enterprise funds:SewerFundThesewerfundaccountsfortheprovisionofsanitarysewerservicetothe residents and commercial users located within the City.Electric FundThe electric fund accounts for the provision of electric power service to the residents and commercial users located within the City.Water FundThe water fund accounts for the provision of water treatment and distribution to the residents and commercial users located within the City.Internal Service FundInternal service funds account for the financing of services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis.The Citysemployeehealthinsuranceinternalservicefundreportsonaself-insuranceprogramfor employee medical benefits.FiduciaryFundsFiduciaryfundreportingfocusesonnetpositionandchangesinnetposition.The fiduciary fund category is split into four classifications:pension trust funds, investment trust funds, private-purpose trust funds and agency funds.Trust funds are used to account for assets held by the City under a trust agreement for individuals, private organizations, or other governments and are therefore not available to support the Citys own programs. The Citys only trust fund is the cemetery internment private-purpose trust fund established to account for money held for individuals for their future burial costs.Measurement FocusGovernment-wide Financial Statements The government-wide financial statements are prepared using a flowofeconomicresourcesmeasurementfocus.Allassetsanddeferredoutflowsofresourcesandall liabilities and deferred inflows of resources associated with the operation of the City are included on the statement of net position.The statement of activities presents increases (e.g. revenues) and decreases (e.g. expenses) in total net position.Fund Financial Statements All governmental funds are accounted for using a flow of current financial resources measurement focus.With this measurement focus, only current assets and deferred outflows of resources and current liabilities and deferred inflows of resources generally are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on the sources (i.e., revenuesandotherfinancingsources)anduses(i.e.,expendituresandotherfinancinguses)ofcurrent financial resources.This approach differs from themanner in which the governmental activities of the government-widefinancialstatementsareprepared.Governmentalfundfinancialstatementstherefore include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds.Likethegovernment-widestatements,allproprietaryfundsareaccountedforonaflowofeconomic resources measurement focus.All assets and deferred outflows of resources and all liabilities and deferred inflows of resources associated with the operation of these funds are included on the statement of fund net - 33 34 -'