California Comprehensive Annual Financial Report - City of Temecula

CITY OF TEMECULA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2009
Net change in fund balances - total governmental funds. $ (24,641,503)
Amounts reported for governmental activities in the statement of activities are
different because:
Governmental funds report capital outlays as expenditures. However, in the statement
of activities, the costs of those assets is allocated over their estimated useful lives
as depreciation expense. This is the amount by which capital outlays exceeded
depreciation in the current period.
Capital expenditures 51,243,714
Depreciation expense (15,706,624)
Disposal of assets (249,749) 35,256,785
Repayment of bond principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net assets. In addition, bond
discounts and premiums are reported when the debt is first issued, where as these
amounts are deferred and amortized in the Statement of Activities.
Principal payments 1,440,332
Discounts on bonds issued (25,938) 1,414,394
Debt issuance costs are expenditures in governmental funds when issued, but these costs
are capitalized on the statement of net assets and amortized over the life of the bond.
Current year amortized bond issuance costs (50,071)
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period. (10,491)
Compensated absences expenses reported in the statement of activities do not
require the use of current financial resources and, therefore, are not reported as
expenditures in governmental funds. (325,895)
Other Post Employment Benefits (OPEB) contributions are expensed in the
governmental funds, but are recorded as a net increase to the accrued net OPEB asset
in the statement of net assets.
211,925
Revenues reported as deferred revenue in the governmental funds and recognized
in the Statement of Activities. These are included in the intergovernmental revenues
in the governmental fund activity. 154,289
Internal service funds are used by management to charge the costs of certain
activities, such as equipment management and self-insurance, to individual funds.
The net revenues (expenses) of the internal service funds is reported with
governmental activities. (644,055)
Change in net assets of governmental activities $ 11,365,378
See Notes to Financial Statements 24