Laserfiche WebLink
CITY OF GEM LAKE, MINNESOTA <br />RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, <br />EXPENDITURES, AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES <br />GOVERNMENTAL ACTIVITIES <br />YEAR ENDED DECEMBER 31, 2016 <br />NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FUNDS $ (1,003,844) <br />Amounts reported for governmental activities in the statement of activities <br />are different because: <br />Governmental funds report capital outlays as expenditures. However, in <br />the statement of activities, assets are capitalized and the cost is <br />allocated over their estimated useful lives and reported as depreciation <br />expense. <br />Capital Outlays $ 323,989 <br />Depreciation Expense (65,959) 258,030 <br />Delinquent and deferred property taxes and special assessments <br />receivable will be collected subsequent to year-end, but are not <br />available soon enough to pay for the current period's expenditures and, <br />therefore, are unavailable resources in the governmental funds. <br />Unavailable Resources - December 31, 2015 550,862 <br />Unavailable Resources - December 31, 2016 497,799 (53,063) <br />The governmental funds report bond proceeds as financing sources, <br />while repayment of bond principal is reported as an expenditure. In the <br />statement of net position, however, issuing debt increases long-term <br />liabilities and does not affect the statement of activities and repayment <br />of principal reduces the liability. Also, governmental funds report the <br />effect premiums and discounts when debt is first issued, whereas these <br />amounts are deferred and amortized in the statement of activities. <br />Interest is recognized as an expenditure in the governmental funds <br />when it is due. In the statement of activities, however, interest expense <br />is recognized as it accrues, regardless of when it is due. The net effect <br />of these differences in the treatment of general obligation bonds and <br />related items is as follows: <br />Repayment of Bond Principal 745,000 <br />Change in Accrued Interest Payable 6,323 <br />Amortization of Bond Discount (5.744) 745,579 <br />CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ (53,298) <br />See accompanying Notes to Basic Financial Statements <br />A-11 <br />