6.4. SR 06-21-2004 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2003 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 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 the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. Capital outlay Depreciation expense 2. The net effect of various miscellaneous transactions involving capital assets including donations and disposals, which increase net assets. Donations of capital assets Disposals of capital assets 3. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the governmental funds. The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effect of these differences in the treatment of long-term debt and related items. Issuance of long-term debt Repayment of principal of long-term debt 5. Some expenses reported in the statement of activities do not require use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Accrued interest payable Compensated absences $ (3,144,940) $ 8,711,480 (3,248,886) 5,462,594 2,850,250 (198,002) 2,652,248 (1,137,433) (1,612,100) 2,456,632 844,532 33,664 (25,828) 7,836 CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 4,684,837 The notes to the financial statements are an integral part of this statement. 24