WAUKESHA COUNTY Waukesha, Wisconsin

WAUKESHA COUNTY, WISCONSINNOTES TO FINANCIAL STATEMENTSDecember 31, 2010NOTE 2 – RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTSA. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND BALANCE SHEET AND THESTATEMENT OF NET ASSETSThe governmental fund balance sheet includes a reconciliation between fund balance – totalgovernmental funds and net assets – governmental activities as reported in the government-widestatement of net assets. One element of that reconciliation states that “Capital assets used ingovernmental activities are not financial resources, and therefore are not reported as assets ingovernmental funds.” The details of this are as follows:Land $48,702,699Construction in progress 18,640,295Buildings and improvements 173,503,925Machinery, equipment, and vehicles 44,794,700Infrastructure 204,547,817Less: Accumulated depreciation (184,937,592)Less: Internal service fund capitalassets, net of depreciation (13,541,119)Adjustment for Capital Assets $291,710,725Another element of that reconciliation states that “Long-term liabilities, including bonds and notespayable, are not due and payable in the current period, and therefore are not reported as liabilities in thefunds.” The details of this are as follows:Notes payable $73,930,000Unamortized debt premium 196,627Unamortized debt discount (65,326)Compensated absences 4,614,655Accrued interest payable 598,535Unamortized debt issuance costs (168,794)Total $79,105,697B. EXPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUND STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES AND THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIESThe governmental fund statement of revenues, expenditures, and changes in fund balances includes areconciliation between net changes in fund balances – total governmental funds and changes in netassets of governmental activities as reported in the government-wide statement of activities. Oneelement 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 usefullives as depreciation expense. This is the amount by which capital asset purchases and contributionsexceeded depreciation in the current period.” The details of this are shown on the following page.53