06/30/2004-FISCAL AUDITS - Laserfiche WebLink

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' RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS ' TO THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30,2004 Net change in fund balances-total governmental funds(page 15).................................................. $ 61198,147 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. These amounts represent the related activity of the current period. Capital outlays..................................................................................................... 1,806,095 Depreciation........................................................................................................ (1,561,843) Revenues in the statement of activities that do not provide current financial resources are fully deferred in the statement of revenues,expenditures and changes in fund balances. Therefore,the recognition of revenue for various types of accounts receivable (i.e.,real estate and personal property,motor vehicle excise,etc.)differ between the two statements. This amount represents the net change in deferred revenue........................... (1,385,223) ' The issuance of long-term debt(e.g.,bonds and leases)provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumes the financial resources of governmental funds. Neither transaction,however,has any impact 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. These amounts represent the related activity of the current period. Bondproceeds...................................................................................................... (4,950,000) Proceeds of refunding bonds.................................................................................... (16,725,000) Retirement of refunded bonds.................................................................................. 16,345,000 Bondmaturities.................................................................................................... 2,345,298 Amortization of bond premiums............................................................................... (1,453,552) Amortization of deferred losses on refundings............................................................. 1,690,967 In the statement of activities,interest is accrued on outstanding long-term debt, whereas in the governmental funds interest is not reported until due. This amount represents the net change in accrued interest payable......................................................... 132,203 Some expenses reported in the statement activities do not require the use of current financial resources and,therefore,are not reported in the governmental funds. These amounts represent the net changes: Landfillclosure..................................................................................................... 28,600 Compensated absences........................................................................................... (56,226) Changes in net assets of governmental activities(page 13)............................................................ $ 2,414,466 See notes to basic financial statements. Town ofMashpee,Massachusetts 17 Basic Financial Statements