Comprehensive Annual Financial Report - St. Tammany Parish ...

ST. TAMMANY PARISH GOVERNMENT
Notes to the Financial Statements 2010
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 $125,436,023 difference are as follows:
Accrued interest payable $2,111,071
Compensated absences 2,854,126
Loan payable 12,231,219
Impact fee credits due 9,522,382
Bonds payable and certificates of indebtedness 98,020,000
Premium on Bonds (amortized as reduction of interest expense) 2,167,865
Deferred charge for issuance costs (amortized over life of debt) (1,470,640)
Net adjustment to reduce fund balance – total governmental funds to arrive
at net assets-governmental activities $125,436,023
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 assets of governmental activities as
reported in the government-wide Statement of Activities. One element of that reconciliation explains, “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 $7,941,230 difference are:
Capital outlay $20,592,266
Depreciation expense (12,651,036)
Net adjustment to increase net changes in fund balances – total governmental funds to arrive at
changes in net assets of governmental activities $7,941,230
Another element of that reconciliation states “The net effect of various miscellaneous transactions involving capital assets
is to increase net assets.” This difference of $8,609,392 includes the donation of capital assets, which consists of roadways
and land, issuing impact fee credits for land, and the loss on roads undergoing complete re-construction before they have
been fully depreciated. It also includes capital assets transferred to internal service funds or enterprise funds that were paid
for by governmental funds. The assets paid out of capital project funds that are associated with buildings were transferred
to the internal service fund that accounts for the buildings’ operations. The Parish also received various grants, accounted
for in special revenue funds, for utility operations related projects and those assets were transferred to the Utility
Operations fund that accounts for their operations. The details of this difference are as follows:
Donation of capital assets $4,179,034
Purchase of land by issuing impact fee credit 5,290,412
Loss on roads (872,142)
Capital contribution to other funds (176,792)
Capital contribution from other funds 188,880
Net adjustment to increase net changes in fund balances – total governmental funds to arrive at
changes in net assets of governmental activities $8,609,392
Another element of that reconciliation states “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 financial
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.”
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