Comprehensive Annual Financial Report - Cobb County

Cobb County, Georgia
Governmental Funds
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 September 30, 2007
Amounts reported for governmental activities in the statement of activities are
different because:
Net change in fund balances - total governmental funds $ 95,611,028
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. This is the amount by which
capital outlays ($74,495,164) were less than depreciation ($76,549,534) in the current period. (2,054,370)
The net effect of revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in the funds.
Property tax 600,626
Local assistance road program revenue (128,509)
The net effect of various miscellaneous transactions involving capital assets
(donations) is to increase net assets. 35,522,676
The gain on disposition of capital assets is not reported in the fund statements. (150,022)
Debt proceeds provide current financial resources to governmental funds, but issuing
debt increases long-term liabilities in the statement of net assets. Repayment of debt
principal and bond costs are expenditures in the governmental funds, but the repayment
reduces long-term liabilities and bond costs are capitalized in the statement of net assets:
Bond principal payments 6,135,000
Bonds issued (25,000,000)
Premium on bonds issued (926,933)
Bond issue costs 51,250
Capital lease proceeds (6,975,011)
Capital lease principal payments 9,438,903
Intergovernmental contract payable 975,000
The current years additions to the net pension asset reduced the net expenses of
pensionable functions on the statement of activities. 310,827
Some expenses reported in the statement of activities do not require the use of current
financial resources and, therefore, are not reported as expenditures in the governmental
funds:
Accrued compensated absences (1,280,652)
Amortization for bond and capital lease discounts, deferred amounts, premiums 147,642
Accrued interest expense 93,091
Internal service funds are used by management to charge the cost of claims
to individual funds. This amount is the net activity of the claims internal service
fund. 18,152,415
Changes in net assets of governmental activities. $ 130,522,961
See accompanying notes to financial statements. 22