2011 Financial Reports - Laserfiche WebLink

Home

CITY OF GEM LAKE,MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE. TO THE STATEMENT OF ACTI.VITIES GOVERNMENTAL ACTIVITIES YEAR ENDED DECEMBER 31, 2011 NET CHANGE 1N FUND BALANCES - TOTAL GOVERNMENTAL FUNDS S 43,114 Amounts reported for govern rental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures: however, in the statement of. activities, assets arecapitalized and the cast is allocated over their estimated useful lives arid, reported as deprecf ation expense: Capita[ Outlays. 31524 Depreciation Expense. (62,439) (58,915) Delinquent and .deferredproperty taxes and special assessments: receivable will be.coliected subsequent to year-end, but are not available soon enough. to pay for the current:period's expenditures and, therefore, are deferred in the governmental funds. Deferred Revenue - December 3.1, 2010 410,283 Deferred Revenue.- December 31, 2011 355,D48 (55,235) The governmental funds report bond: proceeds as .financing sources., while repayment:of bondprincipal is reported as an expenditure. In the statement of net assets, However, issuing debt increaseslong-term liabilities and does not affect the.statement of activities and repayment of principal reduces the liability, Also,. governmental funds report the effect of issuance costs, premiums and discounts when debt is first issued., whereas these amounts are deferred and amortized in the statement.of.activities. Interest is -recognized as an expenditure in the govern mental:funds when it is due. In the. statement of activities, however; interest.expense is recognized as it accrues, regardless of when it is clue. The: net effect of these. differences in the treatment .of general obligation bonds and related.items is. as foifaws: Repayment of Bond Principal 98,276 Change in Accrued Interest Payable 1,596 Amortization of Bond Issue Costs (21827) Amortization of Bond Discount (1,774). 95,271 CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES 24,236 See accompanying Notes to Basic Financial Statements. 0 0):