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CITY OF ST. ANTHONY, MINNESOTA <br />NOTES TO FINANCIAL STATEMENTS <br />December 31, 2023 <br /> <br /> <br /> <br /> <br />V. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS <br /> <br />1. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND <br />BALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET POSITION <br /> <br />The governmental fund balance sheet includes a reconciliation between fund balance – total <br />governmental funds and net position – governmental activities as reported in the government-wide <br />statement of net position. 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 reported in <br />the funds”. The details of this ($24,479,076) difference are as follows: <br /> <br />Bonds payable ($23,500,000) <br />Accrued interest payable (269,492) <br />Unamortized bond premium (709,584) <br /> <br />Net adjustment to reduce fund balance - total <br />governmental funds to arrive at net position - <br />governmental activities. ($24,479,076) <br /> 2. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND <br />STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES AND <br />THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES <br /> <br />The governmental fund statement of revenues, expenditures and changes in fund balances includes a <br />reconciliation between net changes in fund balances – total governmental funds and changes in net <br />position of governmental activities as reported in the government-wide statement of activities. One <br />element of that reconciliation explains that “governmental funds report capital outlays as expenditures. <br />However, in the statement of activities the cost of those assets is allocated over their estimated useful <br />lives and reported as depreciation expense.” The details of this ($358,974) difference are as follows: <br /> <br />Capital outlay $1,668,764 <br />Construction/acquisition costs 187,332 <br />Capital outlay not capitalized (15) <br />Depreciation expense (2,215,055) <br /> <br />Net adjustment to increase net changes in fund <br />balances - total governmental funds to arrive at <br />changes in net position of governmental activities. ($358,974) <br /> <br />52