AgdaPkt 2019-12-16 Joint SA PFA - Laserfiche WebLink

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6.A. - Page 57 of 191 CITY OF REDWOOD CITY, CALIFORNIA RECONCILIATION OF THE NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS WITH THE STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JUNE 30, 2019 The schedule below reconciles the Net Changes in Fund Balances reported on the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balance, which measures only changes in current assets and current liabilities on the modified accrual basis, with the Change in Net Position of Governmental Activities reported in the Statement of Activities, which is prepared on the full accrual basis. NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS Amounts reported for governmental activities in the Statement of Activities are different because of the following: CAPITAL ASSETS TRANSACTIONS Governmental Funds report capital acquisitions as expenditures. However, in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense. This was the amount of capital assets recorded in the current period Donated capital assets do not provide current financial resources and therefore are not recorded in the Governmental Funds Depreciation expense is deducted from the fund balance. (Depreciation expense is net of internal service fund depreciation of $1,500,905 which has already been allocated to the internal service funds.) LONG TERM DEBT PROCEEDS AND PAYMENTS Repayment of debt principal is added back to fund balance. ACCRUAL OF NON-CURRENT ITEMS The amounts below included in the Statement of Activities do not provide or (require) the use of current financial resources and therefore are not reported as revenue or expenditures in governmental funds (net change): Change in compensated absences Change in interest payable Interest receivable and intergovernmental revenue OPEB related expenses Pension related expense ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY 21,217,920 19,735,626 14,384,384 (8,644,841) 347,486 (185,763) 2,624 (2,408,431) 2,626,879 (11,007,007) Internal Service Funds are used by management to charge the costs of certain activities, such as equipment acquisition, maintenance, and insurance to individual funds. The portion of the net revenue (expense) of these Internal Service Funds arising out of their transactions with governmental funds is reported with governmental activities, because they service those activities. Change in Net Position - All Internal Service Funds (323,597) CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES 35,745,280 See accompanying notes to financial statements 29 M