RIO GRANDE CITY CISD ANNUAL FINANCIAL REPORT ... - rgccisd

commitments, assignments generally only exist temporarily. An additional action does nothave to be taken for the removal of an assignment.Unassigned: fund balance of the general fund that is not constrained for any particularpurpose. A negative unassigned fund balance could result in other governmental fund, ifexpenditures incurred for specific purposes exceeded the amounts restricted, committed, orassigned to those purposes.When the District incurs an expense for which it may use either restricted or unrestricted assets, it usesthe restricted assets first whenever they will have to be returned if they are not used.9. The Data Control Codes refer to the account code structure prescribed by TEA in the FinancialAccountability System Resource Guide. Texas Education Agency requires school districts to displaythese codes in the financial statements filed with the Agency in order to insure accuracy in building aStatewide data base for policy development and funding plans.10. The preparation of financial statements in conformity with accounting principles generally accepted inhe United States of America requires management to make estimates and assumptions that affectcertain reported amounts and disclosures. Accordingly, actual results could differ from thoseestimates.11. The Federal Tax Reform Act of 1986 requires issuers of tax-exempt debt to make payments to theUnited States Treasury for investment income received at yields that exceed the issuer’s tax exemptborrowing rates. The Treasury requires payment for each issue every five years. The estimatedliability is updated annually for all tax-exempt issuances or changes in yields until such time paymentof the calculated liability is due. The District had no tax liability as of August 31, 2012.II. RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTSA. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDBALANCE SHEET AND THE GOVERNMENT-WIDE STATEMENT OF NET ASSETSExhibit C-2 provides the reconciliation between the fund balance for total governmental funds on the governmentalfund balance sheet and the net assets for governmental activities as reported in the government-wide statement of netassets. One element of that reconciliation explains that capital assets are not financial resources and are thereforenot reported in governmental funds. In addition, long-term liabilities, including bonds payable, are not due andpayable in the current period and are not reported as liabilities in the funds. The details of capital assets and longtermdebt at the beginning of the year were as follows:Capital Assetsat the Beginning of the yearHistoric CostAccumulatedDepreciation29Net Value at theBeginning of theYearChange in NetAssetsLand $ 6,647,463 $ - $ 6,647,463Buildings & Improv. 179,038,292 (35,982,393) 143,055,899Construction in Progress 48,500 - 48,500Furniture and Equipment 15,307,456 (10,940,508) 4,366,948Change in Net Assets $ 201,041,711 $(46,922,901) $ 154,118,810 $ 154,118,810Long-term Liabilitiesat the Beginning of the yearPayable at theBeginning of theYear994,451,453Bonds Payable (includingCABs)Capital Leases 2,109,740Change in Net Assets $(101,561,193)Net Adjustment to Net Assets $ 52,557,617