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NYS Comptroller


Local Government and School Accountability

Previous Accounting Releases (Advisories and Bulletins)

Examples from GASB Statement 34

Examples from GASB Statement 34 included in this bulletin, copyright by the Governmental Accounting Standards Board, 401 Merritt 7, Norwalk, CT 06856 are reprinted by permission.

Sample City Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2002

Net change in fund balances - Total governmental funds (from Statement of Revenues, Expenditures and Changes in Fund Balance) $ (106,657)
  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 cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

    In the statement of activities, on the gain on the sale of the park land is reported, whereas in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance by the cost of the land sold. (823,000)
    Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 1,920,630
    Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net assets. This is the amount by which proceeds exceeded repayments. (16,140,416)
    Some 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. (1,245,752)
    Internal service funds are used by management to charge the costs of certain activities, such as insurance and telecommunications, to individual funds. The net revenue (expense) of the internal service funds is reported with governmental activities (see Statement of Revenues, Expenses, and Changes in Fund Net Assets) (758,808)
    Changes in net assets of governmental activities. $(3,114,286)

The reconciliation could be presented on the face of the statement, rather than on a separate page. (See the reconciliation ).