C.A.F.R., FY 2004-05 - Laserfiche WebLink

Home Browse Search

City of Paris, Texas Notes to Financial Statements September 30, 2005 II. Reconciliation of Government-wide and Fund Financial Statements (Continued) B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances and the Government-wide Statement of Activity (Continued) this $653,614 difference are as follows: Capital outlay Depreciation expense Net adjustment to decrease net changes in fund balances - total govemmental funds to arrive at changes in net assets of governmental activities $ 3,163,974 (2,510,360) $ 653,614 Another element of that reconciliation states that "the issuance of long-term debt (e.g. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current fmancial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is fIrst issued, whereas these amounts are deferred and amortized in the statement of activities." The details on this $1,054,089 difference are as follows: Amortization of issuance costs Principal repayments Net adjustment to increase net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ (11,283) 1,065,372 $ 1,054,089 Another element of that reconciliation states that "revenues in the statement of activities that do not provide current fmancial resources are not reported as revenues in the funds." The details of the $155,911 difference are as follows: Deferred revenue Donated assets Net adjustment to increase net changes in fund balances- total governmental funds to arrive at changes in net assets of governmental activities $ (149,545) 305,456 $ 155,911 36