2012 Annual Financial Report - Laserfiche WebLink

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CITY OF CENTERVILLE, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2012 Net change in fund balances - governmental funds$ 734,756 Amounts reported for governmental activities in the statement of activities are different because Capital outlays are reported in governmental funds as expenditures. However, in the statement of activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital outlay 66,192 Depreciation expense (900,854) The capital projects funds accounted for the construction of Water , Sewer and Storm water fund assets. These costs of these assets are recorded as expense in the fund statements. When these assets are complete, they are transferred from the governmental to the business-type activities. (271,886) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued, whereas these amounts are delayed and amortized in the statement of activities. Principal repayments 545,604 Debt issued or incurred (515,000) Interest on long-term debt in the statement of activities differs from the amount reported in the governmental fund because interest is recognized as an expenditure in the funds when it is due, and thus requires the use of current financial resources. In the statement of activities, however interest expense is recognized as the interest accrues, regardless of when it is due. 15,611 Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of accounting certain revenues cannot be recognized until they are available to liquidate liabilities of the current period. Special assessments (218,696) Property taxes (3,267) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences payable 5,679 Change in net position - governmental activities$ (541,861) The notes to the financial statements are an integral part of this statement. -39-