b'City of Dover Tuscarawas County, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2018 2.UnrecordedcashrepresentsamountsreceivedbutnotreportedbytheCityontheoperating statements (budget), but which is reported on the GAAP basis operating statements.3.Expenditures/expenses are recorded when paid in cash (budget) as opposed to when the liability is incurred (GAAP).4.Encumbrances are treated as expenditures (budget) rather than as restricted, committed, or assigned fundbalancefortheportionofoutstandingencumbrancesnotalreadyrecognizedasaccounts payable. (GAAP).The following table summarizes the adjustments necessary to reconcile the GAAP basis statements to the budgetary basis statements for the general fund.Net Change in Fund BalanceGAAP Basis ($345,572)Net Adjustment for Revenue Accruals 104,808Beginning Unrecorded Cash 15,271Ending Unrecorded Cash (30,871)Net Adjustment for Expenditure Accruals (65,383)Encumbrances (25,360)Budget Basis ($347,107)Note 6Deposits and InvestmentsThe City has chosen to follow State statutes and classify monies held by the City into three categories.ActivedepositsarepublicdepositsdeterminedtobenecessarytomeetcurrentdemandsupontheCity treasury.Active monies must be maintained either as cash in the City treasury, in commercial accounts payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts, or in money market deposit accounts.Inactive deposits are public deposits that Council has identified as not required for use within the current five year period of designation of depositories.Inactive deposits must either be evidenced by certificates of deposit maturing not later than the end of the current period of designation of depositories, or by savings or deposit accounts including, but not limited to, passbook accounts.Interim deposits are deposits of interim monies. Interim monies are those monies which are not needed for immediate use but which will be needed before the end of the current period of designation of depositories.Interim deposits must be evidenced by time certificates of deposit maturing not more than one year from the date of deposit or by savings or deposit accounts, including passbook accounts. ProtectionoftheCitysdepositsisprovidedbytheFederalDepositInsuranceCorporation(FDIC),by eligiblesecuritiespledgedbythefinancialinstitutionassecurityforrepayment,orbythefinancial institutionsparticipationintheOhioPooledCollateralSystem(OPCS),acollateralpoolofeligible securities deposited with a qualified trustee and pledged to the Treasurer of State to secure the repayment of all public monies deposited in the financial institution. - 43 44 -'