07 - Annual Comprehensive Financial Report

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CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2021 11. Reconciliation of Government -Wide and Fund Financial Statements A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government - Wide Statement of Net Position The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds and net position — governmental activities as reported in the government -wide statement of net position. One element of that reconciliation explains that "capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds." The details of this $40,391,518 are as follows: Land Construction in Progress Buildings Less: Accumulated Depreciation — Buildings Improvements Other Than Buildings Less: Accumulated Depreciation — Improvements Other Than Buildings Machinery and Equipment Less: Accumulated Depreciation — Machinery and Equipment Infrastructure Less: Accumulated Depreciation — Infrastructure Net Adjustment to Increase Fund Balance — Total Governmental Funds to Arrive at Net Position — Governmental Activities $ 5,950,108 263,364 20,556,584 (10,508,552) 6,601,672 (4,237,927) 23,102,816 (18,494,309) 52,733,342 (35,575,580 Another element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds." The details of this $15,101,680 difference are as follows: Bonds Payable S 11,830,000 Plus: Premiums on Bonds Payable (to be Amortized Over the Life of the Debt) 110,136 Tax Notes Payable 955,000 Capital Lease 792,453 Accrued Interest 101,226 Compensated Absences 1,162,865 Landfill Post -Closure Care Costs 150M0 Net Adjustment to Reduce Fund Balance — Total Governmental Funds to Arrive at Net Position — Governmental Activities S 15.101.68Q B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government -Wide Statement of Activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes a reconciliation between net changes in fund balances — total governmental funds and changes in net position of governmental activities as reported in the government -wide statement of activities. One element of that reconciliation "plains that "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." The details of this $(641,661) difference are as follows: 35