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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, 2022
<br />
<br />
<br />
<br />See accompanying Notes to Basic Financial Statements.
<br />(30)
<br />
<br />
<br />
<br />2022
<br />Net Change in Fund Balances-Total Governmental Funds 1,106,425$
<br />v
<br />Capital Outlays - Improvement Costs 2,997,253$
<br />Gain (Loss) on Disposal of Capital Assets 51,951
<br />Proceeds from the Sale of Capital Assets (51,951)
<br />Depreciation Expense (1,969,594) 1,027,659
<br />Amortization of Bond Premium 10,358
<br />Repayment of Notes Payable 7,189
<br />Repayment of Bond Principal 285,000
<br />Change in Accrued Interest Expense 2,665 305,212
<br />
<br />Deferred Inflows of Resources - December 31, 2022 2,623,365
<br />Deferred Inflows of Resources - December 31, 2021 2,626,400 (3,035)
<br />(89,491)
<br />(2,378)
<br />(6,427)
<br />Change in Net Position of Governmental Activities 2,337,965$
<br />Pension expenditures 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.
<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 2017, compensated absence
<br />payable 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
<br />it 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 />Delinquent and certain other property taxes and special assessments receivable will be
<br />collected subsequent to year-end, but are not available soon enough to pay for the current
<br />period’s expenditures and, therefore, are reported as deferred inflows of resources and
<br />excluded from revenues in the governmental funds.
<br />Internal service funds are used by management to charge the cost of insurance to individual
<br />funds. This amount is net revenue (loss) attributable to internal governmental activities.
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