Financial Report - Moreno Valley

City of Moreno Valley
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year Ended June 30, 2011
Net change in fund balances - total governmental funds $ (21,763,428)
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 outlay (excludes internal service capital outlay) 23,176,969
Depreciation Expense (excludes internal service depreciation) (23,326,178)
Contributed capital assets are not reported in governmental funds. However,
in the statement of activities, the value of these assets are recorded as capital contributions. 24,414,000
The issuance of long-term debt provides current financial resources in the governmental
funds, but issuing debt increases the long-term liabilities in the statement of net assets.
Repayment of principal is an expenditure in the governmental funds, but the repayment
reduces long-term liabilities in the statement of net assets.
Bonds issued (7,615,500)
Principal payments 11,724,021
Debt issuance costs are expenditures in governmental funds, but these costs
are capitalized on the statement of net assets.
Issuance costs on refunding bonds issued 167,736
Amortization of refunding bond issuance costs (27,764)
Accrued interest for long-term liabilities. This is the net change in accrued interest
for the current period. 39,308
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. (606,972)
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. (1,284,121)
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. 2,163,866
Change in net assets of governmental activities $ 7,061,937
See Notes to Financial Statements 26