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CITY OF LITTLE CANADA, MINNESOTA
<br />RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
<br />CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
<br />GOVERNMENTAL ACTIVITIES
<br />YEAR ENDED DECEMBER 31, 2015
<br />WITH COMPARATIVE TOTALS FOR YEAR ENDED DECEMBER 31, 2014
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<br />
<br />See accompanying Notes to Basic Financial Statements.
<br />(32)
<br />
<br />2015 2014
<br />Net Change in Fund Balances-Total Governmental Funds 725,231$ 2,008,642$
<br />v
<br />Capital Outlays - Improvement Costs (Net of Proceeds)3,739,227$
<br />Gain on Disposal of Capital Assets 3,188
<br />Proceeds from the Sale of Capital Assets (5,000)
<br />Capital Contributions (101,429)
<br />Depreciation Expense (1,522,451) 2,113,535 1,958,931
<br />General Obligation Bond Proceeds (1,335,000)
<br />Premium on Bonds Issued (21,847)
<br />Amortization of Bond Premium 10,540
<br />Repayment of Notes Payable 30,770
<br />Repayment of Bond Principal 660,000
<br />Change in Accrued Interest Expense 37,747 (617,790) (3,012,981)
<br />Deferred Inflows of Resources - December 31, 2015 3,909,091
<br />Deferred Inflows of Resources - December 31, 2014 4,877,715 (968,624) (724,486)
<br />(13,534) -
<br />8,463 (19,772)
<br />Change in Net Position of Governmental Activities 1,247,281$ 210,334$
<br />Delinquent and certain other property taxes and special assessments receivable will be collected
<br />subsequent to year-end, but are not available soon enough to pay for the current period’s
<br />expenditures and, therefore, are reported as deferred inflows of resources and excluded from
<br />revenues in the governmental funds.
<br />In the statement of activities, compensated absences and other postemployment benefits are
<br />measured by the amounts earned during the year. In the governmental funds, however,
<br />expenditures for these items are measured by the amount of financial resources used
<br />(essentially, the amounts actually paid). During fiscal year 2015, compensated absence payable
<br />and other post employment benefits payable changed.
<br />Amounts reported for governmental activities in the statement of activities are different because:
<br />Governmental funds report capital outlays as expenditures and proceeds from the sale of capital
<br />assets as revenues. However, in the statement of activities, assets are capitalized and the cost
<br />is allocated over their estimated useful lives and reported as depreciation expense. This is the
<br />amount by which depreciation exceeded capital outlays in the current period.
<br />The governmental funds report bond proceeds as financing sources, while repayment of bond
<br />principal is reported as an expenditure. In the statement of net position, however, issuing debt
<br />increases long-term liabilities and does not affect the statement of activities and repayment of
<br />principal reduces the liability. Interest is recognized as an expenditure in the governmental
<br />funds when it is due. In the statement of activities, however, interest expense is recognized as it
<br />accrues, regardless of when it is due. The net effect of these differences in the treatment of
<br />general obligation bonds and related items is as follows:
<br />Pension expenses in the governmental funds are measured by current year employee
<br />contributions. Pension expenses on the statement of activities are measured by the change in
<br />net pension liability and the related deferred inflows and outflows of resources.
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