Accounting records

(1) Each city shall keep its accounting records and render financial reports in such a way as to: (a) Determine compliance with statutory provisions; (b) Determine fairly and with full disclosure the financial operations of constituent funds and account groups of the city; and (c) Conform with generally accepted governmental accounting principles, except cities receiving and expending, from all sources and for all purposes, less than fifteen million dollars ($15,000,000) may choose to conform with the cash or the modified cash basis of accounting. (2) Municipal accounting systems shall be organized and operated on a fund basis.