'O ke kahua ma mua, ma hope ke kūkulu.

State of Hawai‘i
Department of Hawaiian Home Lands
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balances to the Statement of Activities
Year Ended June 30, 2010
Net change in fund balances – governmental funds $ 8,366,725
Amounts reported for governmental activities in the statement of
activities are different because:
Capital outlays are reported as expenditures in governmental
funds, however in the statement of activities, the cost of capital
assets is allocated over their estimated useful lives as
depreciation expense.
In the current period, these amounts are:
Capital outlay $ 31,829,168
Depreciation expense (18,872,435)
Excess of capital outlay over depreciation expense 12,956,733
Repayment of note payable is reported as an expenditure in governmental
funds, but the payment reduces note payable in the statement of
net assets. 2,200,000
Long-term debt payment accruals are included as an expenditure for
governmental funds but are included in bonds payable and capital lease
obligation in the statement of net assets. 1,380,132
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues and are deferred in the
governmental funds. 150,476
Repayment of bond principal is reported as an expenditure in governmental
funds, but the repayment reduces bonds payable in the statement of net
assets. 740,052
Repayment of capital lease obligation is reported as an expenditure in
governmental funds, but the repayment reduces the capital lease obligation
in the statement of net assets. 650,000
The net decrease in accrued vacation is reported in the statement of
activities and does not require the use of current financial resources and
therefore is not reported as expenditures in governmental funds. 10,470
Interest payments associated with long-term obligations do not require
the use of current financial resources and therefore are not reported as
expenditures in governmental funds. (8,982)
The amortization of the discount of bonds payable do not require the
use of current financial resources and therefore are not reported as
expenditures in governmental funds. (16,568)
Proceeds from a note payable are reported as other financing sources in
the governmental funds, but are reported as an increase in notes payable
in the statement of net assets. (406,202)
Change in net assets of governmental activities $ 26,022,836
For a copy of the complete audit report, please visit our website at http://www.hawaii.gov/dhhl
The accompanying notes are an integral part of the financial statements.
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