2011 - Sandown, New Hampshire

TOWN OF SANDOWN. NEW HAMPSHIRERECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES. AND CHANGES IN FUND BALANCES OFGOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31 . 2O1ONET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS(84,700). Governmental funds report capital outlays as expenditures. However,in the Statement of Activities the cost of those assets is allocatedover their estimated usefulives and repofied as depreciation expense:Capital outlay purchases, net of disposalsDepreciation. Revenues in the Statement of Activities that do not provide currentfinancial resources are fully deferred in the Statement of Revenues,Expenditures, and Changes in Fund Balances. Therefore, therecognition of revenue for various types of accounts receivable(e.g., property taxes) differ between the two statements. Thisamount represents the net change in deferred revenue.725,089(209,982)34,100. The issuance of long-term debt (e.g., bonds payable and capitalleases) provides current financial resources to governmental funds,while the repayment of the principal of long-term debt consumesthe financial resources of governmental funds. Neither transaction,however, has any effect on net assets:lssuance of debtRepayments of debt. ln the statement of activities, interest is accrued on outstandinglong-term debt, whereas in governmental funds interest is notrepofted until due.. Some expenses repofied in the Statement of Activities, such ascompensated absences, do not require the use of current financialresources and therefore , are not repofted as expenditures in thegovernmental funds.CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES(80,567)62,302757(9,125)$ -437,874See notes to the financial statements.17