Laserfiche WebLink
7.1.A. - Page 47 <br /> STATEMENT OF NET POSITION AND STATEMENT OF ACTIVITIES <br /> The Statement of Net Position and the Statement of Activities summarize the entire City's financial <br /> activities and financial position. They are prepared on the same basis as is used by most businesses, <br /> which means they include all the City's assets and all its liabilities, as well as all its revenues and <br /> expenses. This is known as the full accrual basis of accounting — the effect of all the City's transactions <br /> is taken into account, regardless of whether or when cash changes hands, but all material internal <br /> transactions between City funds have been eliminated. <br /> The Statement of Net Position reports the difference between the City's total assets and the City's total <br /> liabilities, including all the City's capital assets and all its long -term debt. The Statement of Net Position <br /> presents similar information to the old balance sheet format, but presents it in a way that focuses the <br /> reader on the composition of the City's net position, by subtracting total liabilities from total assets. <br /> The Statement of Net Position summarizes the financial position of the City's governmental activities in <br /> a single column, and the financial position of all City business -type activities in a single column; these <br /> columns are followed by a total column that presents the financial position of the entire City. <br /> The City's governmental activities include the activities of its general fund, along with all its special <br /> revenue, capital projects and debt service funds. Since the City's internal service funds service these <br /> funds, their activities are consolidated with governmental activities, after eliminating inter -fund <br /> transactions and balances. The City's business -type activities include all its enterprise fund activities. <br /> The Statement of Activities reports increases and decreases in the City's net position. It is also prepared <br /> on the full accrual basis, which means it includes all the City's revenues and all its expenses, regardless <br /> of when cash changes hands. This differs from the "modified accrual" basis used in the fund financial <br /> statements, which reflect only current assets, current liabilities, available revenues, and measurable <br /> expenditures. <br /> The Statement of Activities presents the City's expenses first, listed by program, and follows these with <br /> the expenses of its business -type activities. Program revenues — that is, revenues which are generated <br /> directly by these programs — are then deducted from program expenses to arrive at the net expense of <br /> each governmental and business -type activity. The City's general revenues are then listed in the <br /> governmental activities or business -type activities column, as appropriate, and the Change in Net <br /> Position is computed and reconciled with the Statement of Net Position. <br /> 19 <br />