CITY OF SULPHUR, LOUISIANA
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURESAND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS TO STATEMENT OF ACTIVITIES Year Ended June 30,2007
Total net changes in fund balances at June 30, 2007 per statement of revenues, expenditures and changes in fund balances
The change in net assets reported for governmental activities in the statement of activities is different because:
Internal service funds are used by management to charge the cost of insurance to individual funds. The net expenses of certain activities of internal service fund is reported within the governmental activities
Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.
Capital outlay which is considered expenditures on statement of revenues, expenditures and changes in fund balances Depreciation expense for the year ended June 30,2006
Governmental funds report bonded debt repayments as expenditures. However, this expenditure does not appear in the statement of activities since the payment is applied against the bond payable on the statement of net assets
Governmental funds report proceeds from bond issues as revenue. However, this revenue does not appear in the statement of activities since proceeds are applied to bond payable on the statement of net assets.
The net effect of various transactions involving capital assets (i.e., sale and disposal) is to decrease net assets
Difference between interest on long-term debt on modified accrual basis versus interest on long-term debt on accrual basis
Governmental funds do not report compensated absences as expenditures. However, this payable does appear in the statement of activities since the payable is reported on the Statement of net assets
The accompanying notes are an integral part of the basic financial statements.