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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2008 <br />P. FUND EQUITY <br />In the fund financial statements, governmental funds report reservations of fund balance for amounts <br />not appropriable for expenditure or legally segregated for a specific future use. Designated fund <br />balances represent tentative plans for future use of financial resources. <br />Q. INTERFUND TRANSACTIONS <br />Interfund services provided and used are accounted for as revenues, expenditures or expenses. <br />Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it <br />that are properly applicable to another fund, are recorded as expenditures/expenses in the reimbursing <br />fund and as reductions of expenditures/expenses in the fund that is reimbursed. Interfund loans are <br />reported as an interfund loan receivable or payable which offsets the movement of cash between <br />funds. All other interfund transactions are reported as transfers. <br />R. USE OF ESTIMATES <br />The preparation of financial statements in accordance with generally accepted accounting principles <br />(GAAP) requires management to make estimates that affect amounts reported in the financial <br />statements during the reporting period. Actual results could differ from such estimates. <br />S. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS <br />1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND <br />BALANCE SHEET AND THE GOVERNMENT -WIDE STATEMENT OF NET ASSETS <br />The governmental fund balance sheet includes a reconciliation between fund balance — total <br />governmental funds and net assets — governmental activities as reported in the government -wide <br />statement of net assets. One element of that reconciliation explains that "long-term liabilities, <br />including bonds payable, are not due and payable in the current period and therefore are not <br />reported in the funds." The details of this ($32,629,055) difference is as follows: <br />Bonds payable <br />($32,450,000) <br />Accrued interest payable <br />(588,062) <br />Unamortized bond premium <br />2,978 <br />Unamortized bond discount <br />(33,765) <br />Deferred charges <br />439,794 <br />Net adjustment to reduce fund balance - total <br />governmental funds to arrive at net assets - <br />govemmental activities. ($32,629,055) <br />50 <br />