Laserfiche WebLink
CITY OF CENTERVILLE, MINNESOTA <br />RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND <br />CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES <br />GOVERNMENTAL FUNDS <br />FOR THE YEAR ENDED DECEMBER 31, 2016 <br />Amounts reported for governmental activities in the statement of activities are different because <br />Net change in fund balances - governmental funds S 2,070,169 <br />Capital outlays are reported in governmental funds as expenditures. However, in the statement of <br />activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. <br />Capital outlay 236,277 <br />Depreciation expense (1,012,098) <br />Governmental fund report a gain (loss) on sale of capital assets to the extent of cash exchanged, whereas the <br />disposition of the assets book value is included in the total gain (loss) in the statement of activities <br />Disposals (29,000) <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 position. Also, governmental funds report <br />the effect of issuance costs, premiums, discounts and similar items when debt is first issued, <br />whereas these amounts are delayed and amortized in the statement of activities. <br />Principal repayments 725,000 <br />Debt issued or incurred (1,874,619) <br />Interest on long-term debt in the statement of activities differs from the amount 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. In the statement of activities, however <br />interest expense is recognized as the interest accrues, regardless of when it is due. (8,624) <br />Long-term pension activity is not reported in government funds. <br />Pension expense (29,347) <br />Certain revenues are recognized as soon as they are earned. Under the modified accrual basis of <br />accounting, certain revenues cannot be recognized until they are available to liquidate liabilities <br />of the current period. <br />Property taxes (5,084) <br />Special assessments (156,401) <br />Some expenses reported in 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 (4,308) <br />Change in net position - governmental activities S (88,035) <br />The notes to the financial statements are an integral part of this statement. <br />-38- <br />