2013 FINANCIAL STATEMENT - Laserfiche WebLink

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CITY OF GEM LAKE, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXIPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES GOVERNMENTAL ACTIVITIES YEAR ENDED DECEMBER 31, 2013 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $ (264,914.) Amounts reported. for .governmental activities in the .statement of activities are different because: Governmental funds. 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. Depreciation Expense (61,873) Delinquent and deferred property.taxes and special assessments receivable will be colleted subsequent to year-end, but are not available soon enough to pay: for the current periods. expenditures. and, therefore, are unavailable resources in the governmental funds. Unavailable Resources - December 31., 201.2 $ .229,043 Unavailable Resources - December 31, 2013 138,223 (90,820) The governmental funds report bond proceeds as financing sources, while repayment of bond principal is reported aa.an expenditure. In the statement of net position, however, issuing debt increases long-term 116bilities and does not affect the statement of activities and repayment. of principal reduces the liability. Also, .governmental funds report the effect premiums and discounts when debt is f rst. 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,. interest expense is recognized as it accrues, regardless. of when it is; due. The net effect of these differences in the treatment of general obligation bonds%and related items isas follows: Repayment of Bond Principal 379,923 Change in Accrued Interest Payable .6,214 Write -Off of Previous Years' Bond Issuance Costs (23;567) Amortization of Bond Discount (5,249) 857.321 CHANGE IN NET POSITION OF GOVERNMENTAL.ACTIVITIES. $: (60,286) See accompanying Notes -to Basic Financial Statements. (11)