2017.07.17 CC Packet - Laserfiche WebLink

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CITY OF HUGO, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended December 31, 2016 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds (page 20) Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay -capitalized $ 2,595,796 Depreciation expense (1,329,554) The net effect of various miscellaneous transactions involving capital assets (i.e., sales, trade-ins and donations) is to decrease net assets. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Unavailable revenue, End of year $ 3,190,210 Unavailable revenue, Beginning of year (3,800,420) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences Bond, contract and loan proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Principal retirement on long-term debt $ 1,570,000 Change in net pension liability 82,983 $ 690,970 1,266,242 (259,727) (610,210) (20,100) Change in accrued interest 7,718 Change in bond discounts and premium 737 1,661,438 Change in net position of governmental activities (pages 16 and 17) $ 2,728,613 See Notes to Financial Statements 21