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CITY OF GEM LAKE, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES. GOVERNMENTAL ACTIVITIES YEAR ENDED DECEMBER 31, 2019 NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS $ 170,236 Amounts reported for governmental activities in the statement of activities are different because;. Governmentalfunds report capital outlays as expenditures. .However, in the statement of activities, assets are capitalized and. the cost.is allocated over their estimated useful lives and reported. as depreciation .expense. Capital Outlays: $. 66,883 Depreciation Expense (74,069) Transfer of. Capital Asset (151,229) (158,41.5) Delinquent and deferred property taxes and special assessments receivable will be collected subsequent to year-end, but are not available soon enough to pay for the current period'.s expenditures and, therefore, are unay. aiiabie resources in the governmental funds. Unavailable Resources- December 31, 2018 991,780 Unavailable.Resources - December 31, 2010 933,848 (57,932) The.governmental funds report.bond proceeds as financing sources, while repayment of bond principal is reported as an expenditure. In the state ment.of net position, however, issuing debt increases long= term..liabilhies and does not affect.the statement of activities and repayment of principal reduces the liability. Also, governmental funds. report the effect of 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. governmental funds :when it is due.. In the statement of activities, however, i nterest. ex pen se is recognized as it accrues, regardless of when it is due. The net effect of these differences is as follows: Repayment of Bond.Principal 65,000 Change in Accrued Interest Payable 1;590 Amortization. of Bond Premium 1,282. 67,872 CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES S 21,761 See accompanying Ngtps to. Basic Financial Statements. (9)