CITY OF SUFFOLK, VIRGINIA NOTES TO FINANCIAL STATEMENTS June 30, 2016
Note 17.
Prior Period Adjustments The following is a summary of the restatements to fund balance/net position: The adjustment for the correction of misapplied revenues was necessary due to a situation where the incorrect percentage of revenue was applied to the special taxing districts. This incorrect percentage caused more revenue to be applied to the special taxing districts in prior years that should have been applied to the General Fund. The impact on the change in net position for fiscal year 2015 would have been to increase the change for the General Fund by $314,411 while decreasing the change in fund balance for the Downtown Business Overlay District by $54,095 and the Route 17 Taxing District by $260,316. The restatement for the error correction was due to an entry that was made in a prior fiscal year to transfer some capital assets out of the internal service funds and into the value of governmental activities capital assets. This entry was done incorrectly in the previous fiscal year. The impact on the change in net position for fiscal year 2015 would be to increase the change for the Governmental Activities and Fleet Management while decreasing Risk Management net position change by the amounts shown in the table. The error correction related to the inconsistent application of GAAP was due to the recording of a completed CIP project for Pioneer Elementary school. The School Board has historically recorded the schools assets on the records of the School consistent with GAAP. When Pioneer Elementary was completed in 2015, the City recorded the asset on the records of the City under a tenancy in common. In order to be consistent with historical practice, City policy and GAAP, the school building was transferred to the records of the Schools. The impact on the change in net position for fiscal year 2015 would be to decrease the change for the Governmental Activities while increasing the Schools’ net position by $18,234,608.
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