Laserfiche WebLink
CITY OFCENTERVILLE, MINNESOTA <br />RECONCILIATION OFTHE STATEMENT OF REVENUES, EXPENDITURESAND <br />CHANGESIN FUND BALANCES (DEFICITS) TO THE STATEMENT OF ACTIVITIES <br />GOVERNMENTAL FUNDS <br />FOR THE YEAR ENDED DECEMBER 31, 2011 <br />Net change in fund balances- governmental funds $ (1,365,404) <br />Amounts reported for governmental activities in the statement <br />of activities are different because <br />Capital outl ays are reported i n governmental funds as expenditures. However, i n the statement of <br />activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. <br />Capital outlay 741,593 <br />Depreciation expense (543,616) <br />The issuance of long -term debt provides current financial resources to governmental funds, while <br />the repayment of principal of long -term debt consumes the current financial resources of governmental <br />funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report <br />the effect of issuance costs, premiums, discounts and si mi I ar items when debt i s fi rst issued, <br />whereas these mounts are deferred and amortized in the statement of activities. <br />Principal repayments 4,243,854 <br />Debt issued or incurred (2,760,000) <br />Amortization of deferred charges 23,483 <br />Revenues in the statement of activities that do not provide current financial resources are not reported as <br />revenues in the funds. <br />Capital assets contributed by developers 696,298 <br />I nterest on long -term debt in the statement of activities differs from the mount reported in the <br />governmental fund because interest is recognized as an expenditure in the funds when it is due, <br />and thus requires the use of current financial resources. I n the statement of activities, however <br />interest expense is recognized as the interest accrues, regardless of when it is due. 4,356 <br />Certain revenues are recognized as soon as they are earned. Under the modified accrual <br />basis of accounting certain revenues cannot be recognized until they are available <br />to liquidate l i a b i l i t i e s of the current period. <br />Special assessments (283,396) <br />Property taxes (28,120) <br />Some expenses reported i n the statement of activities do not require the use of current <br />financial resources and, therefore, are not reported as expenditures in governmental funds. <br />Compensated absences payable 5,165 <br />Changeinnetassets - governmentalactivities $ 734,213 <br />The notes to the financial statements are an integral part of this statement. <br />-38- <br />