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Minnesota Municipal Power Agency <br />Notes to Financial Statements <br />December 31, 2022 and 2021 <br />Note 1: Organization and Significant Accounting Policies - Continued <br />Change in Accounting Principles <br />During 2022, the Agency adopted GASB Statement No. 87, Leases (GASB 87). This statement <br />supersedes portions of GASB Statement No. 62 and establishes new requirements for calculating and <br />reporting the Agency's lease activities. The adoption date of GASB 87 is reflected as of January 2021 <br />and required the Agency to remeasure its lease asset to agree to the related lease liability balance at the <br />lease adoption date of January 1, 2021. This remeasurement increased the beginning balance of capital <br />assets by $5,883,103 and decreased the beginning balance of future recoverable costs by an equal amount. <br />This remeasurement had no impact on the Agency's previously reported change in net position. <br />Note 2: Cash, Cash Equivalents, and Investments <br />The agency agreement that established the Agency and the bond resolution, under which the Electric <br />Revenue Bonds were issued, provides for the creation and maintenance of certain funds and accounts. <br />The funds and accounts consist principally of deposits and investments in accordance with the agency <br />agreement, bond resolution, and applicable state law. Funds and accounts are reported in the financial <br />statements as follows: <br />Current assets <br />Cash and cash equivalents <br />Restricted cash and cash equivalents <br />Noncurrent assets <br />Restricted cash and cash equivalents <br />Restricted investments <br />Total <br />December 31 <br />2022 <br />2021 <br />$ 84,540,189 <br />$ 69,052,676 <br />3,717,962 <br />4,161,561 <br />88,258,151 <br />73,214,237 <br />2,446,938 <br />55,441 <br />8,054,874 <br />10,791,362 <br />10,501,812 <br />10,846,803 <br />$ 98,759,963 $ 84,061,040 <br />157 <br />19 <br />