ESSENTIALS OF ACCOUNTING FOR GOVERNMENTAL AND NOT FOR PROFIT ORGANIZATIONS 13TH EDITION
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CHAPTER 8: Government-Wide Statements, Capital Assets, Long-Term Debt
8-1. THE SOLUTION TO THIS AND THE FIRST EXERCISE OF CHAPTERS 1 THROUGH 8 WILL DIFFER FROM STUDENT TO STUDENT ASSUMING EACH HAS A DIFFERENT CAFR.
8-2. THE MOST COMMON NONEXCHANGE TRANSACTION THAT RESULTS IN A DIFFERENCE BETWEEN ACCRUAL AND MODIFIED ACCRUAL ACCOUNTING IS PROPERTY TAX REVENUE PROPERTY TAXES EXPECTED TO BE COLLECTED MORE THAN 60 DAYS AFTER YEAR END ARE REPORTED AS DEFERRED INFLOWS UNDER MODIFIED ACCRUAL ACCOUNTING BUT WOULD NOT BE DEFERRED IN THE GOVERNMENT-WIDE STATEMENTS USING ACCRUAL ACCOUNTING ANOTHER COMMON REVENUE THAT RESULTS IN DIFFERENCES IS INCOME TAXES.IT IS COMMON THAT INCOME TAXES MAY NOT BE COLLECTED IN TIME TO MEET THE “AVAILABLE” CRITERIA USED FOR MODIFIED ACCRUAL RECOGNITION.
IN CONTRAST, MANDATED AND VOLUNTARY NONEXCHANGE TRANSACTIONS (GRANTS) TYPICALLY RESULT IN REVENUE RECOGNITION IN THE SAME PERIODS UNDER THE ACCRUAL AND MODIFIED ACCRUAL BASES
8-3. INTERNAL SERVICE FUNDS MOST COMMONLY PROVIDE GOODS AND SERVICES TO GOVERNMENT DEPARTMENTS CLASSIFIED WITHIN GOVERNMENTAL ACTIVITIES.THESE DEPARTMENTS ARE TYPICALLY REPORTED IN THE GENERAL FUND. FOR THIS REASON, THE ASSETS, LIABILITIES AND NET POSITION USED TO ACCOMPLISH GOVERNMENTAL ACTIVITIES, INCLUDING THOSE CLASSIFIED AS INTERNAL SERVICE FUND ACTIVITIES, ARE REPORTED AS GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET POSITION HOWEVER, IF AN INTERNAL SERVICE FUND PREDOMINANTLY PROVIDED GOODS AND SERVICES TO ENTERPRISE
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt 8-1
FUNDS, IT SHOULD BE REPORTED IN THE BUSINESS ACTIVITIES COLUMN OF THE STATEMENT OF NET POSITION
8-4.
A. INFRASTRUCTURE REPRESENTS LONG-LIVED CAPITAL ASSETS THAT NORMALLY ARE STATIONARY IN NATURE AND NORMALLY CAN BE PRESERVED FOR A SIGNIFICANTLY GREATER NUMBER OF YEARS THAN MOST CAPITAL ASSETS.EXAMPLES OF INFRASTRUCTURE ASSETS INCLUDE ROADS, BRIDGES, TUNNELS, DRAINAGE SYSTEMS, WATER AND SEWER SYSTEMS, DAMS, AND LIGHTING SYSTEMS.
B. A GOVERNMENT MAY RECORD INFRASTRUCTURE AND DEPRECIATE IT AS ANY OTHER FIXED ASSETS OR MAY USE THE “MODIFIED” METHOD.THE DIFFERENCES ARE THAT UNDER THE “MODIFIED METHOD” GOVERNMENTS EXPENSE AMOUNTS THAT ARE EXPENDED TO EXTEND THE LIFE OF THE INFRASTRUCTURE (BUT NOT IMPROVE IT) AND THEN ARE NOT REQUIRED TO RECORD DEPRECIATION ON THAT INFRASTRUCTURE
Government-Wide
8-2
Chapter 8
Statements, Capital Assets, Long-Term Debt
8-4 (CONTINUED)
C. TO USE THE MODIFIED APPROACH, TWO CONDITIONS MUST EXIST.
a. FIRST, THE GOVERNMENT MUST HAVE AN ASSET MANAGEMENT SYSTEM THAT (1) KEEPS AN UP-TO-DATE INVENTORY OF ELIGIBLE INFRASTRUCTURE ASSETS, (2) PERFORMS CONDITION ASSESSMENTS OF THOSE ELIGIBLE INFRASTRUCTURE ASSETS AT LEAST EVERY THREE YEARS, USING A CONSISTENT MEASUREMENT SCALE, AND (3) ESTIMATES EACH YEAR THE ANNUAL AMOUNT TO MAINTAIN AND PRESERVE THOSE ASSETS AT THE CONDITION LEVEL ESTABLISHED AND DISCLOSED BY THE GOVERNMENT.
b. SECOND, THE GOVERNMENT MUST DOCUMENT THAT THE ELIGIBLE INFRASTRUCTURE ASSETS ARE BEING MAINTAINED AT A LEVEL AT OR ABOVE THE CONDITION LEVEL ESTABLISHED AND DISCLOSED BY THE GOVERNMENT
D. TWO REQUIRED SUPPLEMENTARY INFORMATION SCHEDULES MUST BE PREPARED, WHEN USING THE MODIFIED APPROACH.ONE IS A SCHEDULE THAT DISCLOSES THE ASSESSED CONDITION OF ELIGIBLE INFRASTRUCTURE ASSETS THE SECOND REPORTS THAT ESTIMATED ANNUAL AMOUNT TO MAINTAIN AND PRESERVE ELIGIBLE INFRASTRUCTURE ASSETS COMPARED WITH THE AMOUNT ACTUALLY EXPENDED FOR EACH OF THE PRECEDING FIVE FISCAL PERIODS
8-5.
1. GOVERNMENTAL FUND STATEMENTS ARE TO BE PREPARED USING THE CURRENT FINANCIAL RESOURCES MEASUREMENT FOCUS AND MODIFIED ACCRUAL BASIS OF ACCOUNTING.
PROPRIETARY FUND, FIDUCIARY FUND, AND GOVERNMENT-WIDE STATEMENTS ARE TO BE PREPARED USING THE ECONOMIC RESOURCE MEASUREMENT FOCUS AND ACCRUAL BASIS OF ACCOUNTING.
2.A. DISCRETELY PRESENTED COMPONENT UNITS ARE INCLUDED IN THE GOVERNMENT-WIDE BUT NOT THE FUND FINANCIAL STATEMENTS
B. FIDUCIARY FUNDS ARE INCLUDED IN THE FUND FINANCIAL STATEMENTS; STATEMENTS INCLUDE THE STATEMENT OF FIDUCIARY NET POSITION AND THE STATEMENT OF CHANGES IN FIDUCIARY NET POSITION FIDUCIARY FUNDS ARE NOT INCLUDED IN THE GOVERNMENTWIDE FINANCIAL STATEMENTS.
C. INTERNAL SERVICE FUNDS ARE REPORTED IN THE PROPRIETARY FUNDS STATEMENT OF NET POSITION AND STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION. INTERNAL SERVICE FUNDS, HOWEVER, ARE USUALLY PRESENTED IN THE GOVERNMENT-WIDE STATEMENTS AS GOVERNMENTAL, NOT BUSINESS-TYPE ACTIVITIES
3.A. THE CATEGORY, NET INVESTMENT IN CAPITAL ASSETS, INCLUDES ALL CAPITAL ASSETS, LESS DEPRECIATION LESS DEBT ASSOCIATED WITH THE ACQUISITION OF CAPITAL ASSETS
B. RESTRICTED NET POSITION INCLUDES NET RESOURCES (A) EXTERNALLY IMPOSED BY CREDITORS (SUCH AS THROUGH DEBT COVENANTS), AND (B) IMPOSED BY LAW THROUGH CONSTITUTIONAL PROVISIONS OR LEGISLATION. IT WOULD ALSO INCLUDE THE PRINCIPAL OF PERMANENT FUNDS (THIS IS DISPLAYED AS NONSPENDABLE IN THE FUND-BASIS STATEMENTS.
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt 8-3
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt
8-5(CONTINUED).
C. UNRESTRICTED NET POSITION REPRESENT THOSE NET RESOURCES NOT REPRESENTED IN EITHER OF THE OTHER TWO CATEGORIES. THAT NUMBER IS OBTAINED BY SUBTRACTING FROM TOTAL NET POSITION THE NET CAPITAL ASSETS, NET OF RELATED DEBT, AND THE RESTRICTED NET POSITION
8-6. SOME OF THE ITEMS THAT WILL NEED ADJUSTING, WHEN MOVING FROM FUND FINANCIAL STATEMENTS TO GOVERNMENT-WIDE FINANCIAL STATEMENTS, INCLUDE:
A. CAPITAL ASSET RELATED ENTRIES:
1) RECORDING THE BEGINNING BALANCE OF GENERAL FIXED ASSETS AND RELATED ACCUMULATED DEPRECIATION ACCOUNTS.
2) ELIMINATING CONSTRUCTION EXPENDITURES SHOWN IN GOVERNMENTAL FUNDS AND RECORDING THOSE AS CAPITAL ASSETS
3) RECORDING DEPRECIATION EXPENSES FOR GENERAL FIXED ASSETS
4) ADJUST PROCEEDS FROM SALE OF FIXED ASSETS TO GAINS FROM SALE OF FIXED ASSETS AND RECORD THE DISPOSAL OF THE ASSET.
B. LONG-TERM DEBT RELATED ENTRIES:
1) RECORD THE BEGINNING BALANCES OF GENERAL LONG-TERM DEBT.
2) ELIMINATING PROCEEDS OF BONDS SOLD AND RECORDING THE LIABILITIES INCURRED
3) ELIMINATING EXPENDITURES FOR BOND PRINCIPAL AND REDUCING THE ASSOCIATED LIABILITY.
4) MAKING ADJUSTMENTS FOR INTEREST EXPENSE ACCRUALS, INCLUDING AMORTIZATION OF BOND DISCOUNTS AND PREMIUMS
C. MAKING ADJUSTMENTS FOR REVENUE ACCRUALS, TO MEET THE PROVISIONS OF GASB STATEMENT 33.
D. MAKING ADJUSTMENTS FOR EXPENSE ACCRUALS; FOR EXAMPLE, COMPENSATED ABSENCES
E. INTERNAL SERVICE FUND ENTRIES
1) BRING IN BALANCES OF INTERNAL SERVICE FUND STATEMENT OF NET POSITION ACCOUNTS
2) ADDTRANSACTIONSOFINTERNALSERVICEFUNDSTHATAREWITHEXTERNAL PARTIES.
3) REDUCE GOVERNMENTAL FUND EXPENSES BY THE NET OPERATING PROFIT OF INTERNAL SERVICE FUNDS. GOVERNMENTAL FUND EXPENSES ARE INCREASED BY ANY OPERATING LOSSES IN THE INTERNAL SERVICE FUNDS
F. ELIMINATE ANY TRANSFERS AND OTHER INTERFUND BALANCES THAT ARE WITHIN GOVERNMENTAL ACTIVITIES
8-4
Statements,
8-5 8-7.
APRIL 30, 2017 GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES TOTAL ASSETS: CASH AND CASH EQUIVALENTS RECEIVABLES INVENTORIES CAPITAL ASSETS,NET TOTAL ASSETS $ 380,000 450,000 13,500,000 14,330,000 $800,000 1,330,000 520,000 7,100,000 9,750,000 $1,180,000 1,780,000 520,000 20,600,000 24,080,000 LIABILITIES: ACCOUNTS PAYABLE COMPENSATED ABSENCES PAYABLE BONDS PAYABLE TOTAL LIABILITIES 650,000 359,000 7,800,000 8,809,000 559,000 3,210,000 3,769,000 1,209,000 359,000 11,010,000 12,578,000 NET POSITION: NET INVESTMENT IN CAPITAL ASSETS RESTRICTED UNRESTRICTED TOTAL NET POSITION 5,700,000 554,000 (733,000) $5,521,000 3,890,000 190,000 1,901,000 $5,981,000 9,590,000 744,000 1,168,000 $11,502,000 Governmental Activities Net investment in capital assets Restricted Unrestricted Total Net investment in capital assets: Capital Assets (net) $ 13,500,000 $ 13,500,000 Less General Obligation Bonds (7,800,000) (7,800,000) Restricted Net position: 554,000 554,000 Unrestricted (plug) (733,000) (733,000) Total Net position $ 5,700,000 554,000 (733,000) 5,521,000 Business-type Activities Net investment in capital assets Restricted Unrestricted Total Net investment in capital assets: Capital Assets (net) $ 7,100,000 $ 7,100,000 Less Revenue Bonds (3,210,000) (3,210,000) Restricted Net position: 190,000 190,000 Unrestricted (plug) 1,901,000 1,901,000 Total Net position $ 3,890,000 190,000 1,901,000 5,981,000
Chapter 8 Government-Wide
Capital Assets, Long-Term Debt
CITY OFSOUTHERN SPRINGS STATEMENT OFNETPOSITION
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt 8-6 8-8. CITYOFNORTHERNPINES STATEMENT OFACTIVITIES YEARENDEDJUNE 30,2017 PROGRAM REVENUES NET (EXPENSE) REVENUE AND CHANGE IN NET POSITION FUNCTIONS/PROGRAMS EXPENSES CHARGES FOR SERVICES OPERATING GRANTS GOVERNMENTAL ACTIVITIES BUSINESS-TYPE ACTIVITIES TOTAL GOVERNMENTAL ACTIVITIES: GENERAL GOVERNMENT PUBLIC SAFETY PUBLIC WORKS HEALTH AND SANITATION CULTURE AND RECREATION INTEREST ON LONG-TERM DEBT TOTAL GOVERNMENTAL ACTIVITIES $11,760,000 23,900,000 11,290,000 6,010,000 4,398,000 721,000 58,079,000 $1,310,000 210,000 2,355,000 2,198,000 6,073,000 $ 798,000 1,210,000 2,008,000 $(10,450,000) (22,892,000) (11,290,000) (2,445,000) (2,200,000) ( 721,000) (49,998,000) $ $ (10,450,000) (22,892,000) (11,290,000) (2,445,000) (2,200,000) (721,000) (49,998,000) BUSINESS-TYPE ACTIVITIES: WATER AND SEWER SYSTEM PARKING SYSTEM TOTAL BUSINESS-TYPE ACTIVITIES 10,710,000 409,000 11,119,000 11,588,000 388,000 11,976,000 --- --878,000 (21,000) 857,000 878,000 ( 21,000) 857,000 TOTAL $69,198,000 $18,049,000 $2,008,000 (49,998,000) 857,000 (49,141,000) GENERAL REVENUES: PROPERTY TAXES SALES TAXES INVESTMENT EARNINGS SPECIAL ITEM-GAIN ON SALE OF LAND TRANSFERS TOTAL GENERAL REVENUES, SPECIAL ITEMS, AND TRANSFERS CHANGE IN NET POSITION NET POSITION, JULY 1, 2016 NET POSITION, JUNE 30, 2017 27,112,000 20,698,000 1,250,000 700,000 49,760,000 (238,000) 8,200,000 $ 7,962,000 325,000 (700,000) (375,000) 482,000 2,300,000 $ 2,782,000 27,112,000 20,698,000 325,000 1,250,00049,385,000 244,000 10,500,000 $ 10,744,000
8 Government-Wide Statements, Capital Assets, Long-Term Debt 8-7 8-9.
OFGRINDERSSWITCH WORKSHEET ENTRIES DEBITS CREDITS 1. LAND BUILDINGS IMPROVEMENTS OTHER THAN BUILDINGS EQUIPMENT ACCUMULATED DEPRECIATION,CAPITAL ASSETS NET POSITION 7,690,000 33,355,000 14,820,000 11,554,000 25,300,000 42,119,000 2. BUILDINGS IMPROVEMENTS OTHER THAN BUILDINGS EXPENDITURES-CAPITAL OUTLAY 4,800,000 2,700,000 7,500,000 3. DEPRECIATION EXPENSE ACCUMULATED DEPRECIATION-BUILDINGS (33,355,000/40) ACCUMULATED DEPRECIATION-IMPROVEMENTS OTHER THAN BUILDINGS (14,820,000/20) ACCUMULATED DEPRECIATION-EQUIPMENT (11,554,000/10) 2,730,275 833,875 741,000 1,155,400 4. SPECIAL ITEM -PROCEEDS FROM SALE OF LAND LAND SPECIAL ITEM: GAIN ON SALE OF LAND 600,000 505,000 95,000 5. NET POSITION BONDS PAYABLE PREMIUM ON BONDS PAYABLE 4,018,000 4,000,000 18,000 6. PREMIUM ON BONDS PAYABLE INTEREST EXPENSE 1,800 1,800 BONDS PAYABLE EXPENDITURES-PRINCIPAL 412,000 412,000 7. OTHER FINANCING SOURCES-PROCEEDS OF BONDS BONDS PAYABLE 1,700,000 1,700,000
Chapter
CITY
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt 8-8 8-10. CITY OFSOUTHPITTSBURGH WORKSHEET ENTRIES DEBITS CREDITS 1. REVENUES-PROPERTY TAXES NET POSITION 47,500 47,500 2. DEFERRED INFLOWS-PROPERTY TAXES REVENUES-PROPERTY TAXES 51,000 51,000 3. PUBLIC SAFETY EXPENSE COMPENSATED ABSENCES PAYABLE 29,000 29,000 4. PUBLIC SAFETY EXPENSE NET PENSION OBLIGATION 22,000 22,000 5. TRANSFERS IN TRANSFERS OUT 700,000 700,000 8-11. CITYOFSOUTHERN PINES WORKSHEET ENTRIES DEBITS CREDITS 1. CASH INVESTMENTS DUE FROM GENERAL FUND* INVENTORIES CAPITAL ASSETS (NET) ACCOUNTS PAYABLE LONG-TERM ADVANCE FROM ENTERPRISE FUND NET POSITION 85,000 125,000 15,000 325,000 960,000 50,000 600,000 860,000 * DUE TO INTERNAL SERVICE FUND (GENERAL FUND) DUE FROM GENERAL FUND (INTERNAL SERVICE FUND) 15,000 15,000 2. NET POSITION INTEREST REVENUE 2,800 2,800 3. NET POSITION EXPENDITURES-GENERAL GOVERNMENT EXPENDITURES-PUBLIC SAFETY EXPENDITURES-PUBLIC WORKS 36,000 12,000 12,000 12,000
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt 8-9 8-12 SHENANDOAH CITY WORKSHEET ENTRIES FORTHE YEARENDED DECEMBER31, 2017 DEBITS CREDITS CAPITAL ASSETS LAND BUILDINGS INFRASTRUCTURE EQUIPMENT ACCUMULATED DEPRECIATION -BUILDINGS ACCUMULATED DEPRECIATION - INFRASTRUCTURE ACCUMULATED DEPRECIATION -EQUIPMENT NET POSITION 7,230,000 22,600,000 27,500,000 6,370,000 13,000,000 9,000,000 3,100,000 38,600,000 EQUIPMENT BUILDINGS EXPENDITURES-CAPITAL OUTLAY 856,700 1,651,900 2,508,600 DEPRECIATION EXPENSE ACCUMULATED DEPRECIATION -BUILDINGS ACCUMULATED DEPRECIATION - INFRASTRUCTURE ACCUMULATED DEPRECIATION -EQUIPMENT 2,612,500 1,100,000 975,000 537,500 LONG TERM DEBT NET POSITION BONDS PAYABLE 6,000,000 6,000,000 OTHER FINANCING SOURCES -PROCEEDS OF BONDS OTHER FINANCING SOURCES-PREMIUM ON BONDS BONDS PAYABLE PREMIUM ON BONDS PAYABLE 4,000,000 50,000 4,000,000 50,000 BONDS PAYABLE EXPENDITURES-DEBT SERVICE-BOND PRINCIPAL 500,000 500,000 INTEREST INTEREST EXPENSE ACCRUED INTEREST PAYABLE [(6,000,000 – 500,000) *6% *6/12] +[(4,000,000) *5% *6/12] 265,000 265,000 NET POSITION INTEREST EXPENSE (2016 ACCRUAL REVERSAL) 180,000 180,000 PREMIUM ON BONDS PAYABLE INTEREST EXPENSE 2,500 2,500
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt
8-10 8-12(CONTINUED). SHENANDOAH
WORKSHEET
(CONTINUED) DEBITS CREDITS DEFERRED INFLOWSTAXES REVENUES-PROPERTY TAXES NET POSITION 45,000 45,000 DEFERRED INFLOWS OF RESOURCES –PROPERTY TAXES REVENUES-PROPERTY TAXES 78,000 78,000 ACCRUED LIABILITIES NET POSITION ACCRUED LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS 29,500 29,500 PUBLIC WORKS EXPENSES (CLOSURE AND POSTCLOSURE CARE) ACCRUED LANDFILL CLOSURE AND POSTCLOSURE CARE COSTS 7,000 7,000 INTERNAL SERVICE ACTIVITIES CASH DUE FROM OTHER FUNDS INVENTORIES LAND BUILDINGS EQUIPMENT ACCUMULATED DEPRECIATION –BUILDINGS ACCUMULATED DEPRECIATION -EQUIPMENT ACCOUNTS PAYABLE ADVANCE FROM ENTERPRISE FUND NET POSITION 27,000 21,200 25,000 25,000 44,000 21,000 13,200 12,600 18,400 10,000 109,000 NET POSITION INVESTMENT INCOME 6,000 6,000 EXPENDITURES-CURRENT-GENERAL GOVERNMENT NET POSITION 4,000 4,000 INTERFUND BALANCES TRANSFERS IN TRANSFERS OUT 145,900 145,900 DUE TO OTHER FUNDS DUE FROM OTHER FUNDS 10,200 10,200
CITY
ENTRIES
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt
8-13PART 1 SOLUTIONS TO THE EXCEL BASED EXERCISES ARE ALSO AVAILABLE IN EXCEL ON THE INSTRUCTOR’S WEBSITE
JOURNAL ENTRIES TO CONVERT TO THE ACCRUAL BASIS OF ACCOUNTING
8-11
W
A CAPITAL ASSETS (NET) 7,890,000 NET POSITION BEGINNING OF YEAR 7,890,000 DEPRECIATION EXPENSE 316,000 CAPITAL ASSETS (NET) 316,000 CAPITAL ASSETS (NET) 651,900 CAPITAL OUTLAY (EXPENDITURE) 651,900 B. NO BEGINNING LONG TERM DEBT -PROCEEDS FROM SALE OF BONDS 700,000 PROCEEDS FROM BOND PREMIUM 22,800 BONDS PAYABLE 700,000 PREMIUM ON BONDS PAYABLE 22,800 BONDS PAYABLE 22,000 EXPENDITURE - PRINCIPLE ON BONDS 22,000 INTEREST EXPENSE 10,170 INTEREST PAYABLE 10,170 INTEREST FROM OCT 1 TO DEC 31 (700,000 - 22,000) * 6% * 3/12 = 10,170 PREMIUM ON BONDS PAYABLE 1,800 INTEREST EXPENSE 1,800 C DEFERRED INFLOWS - PROPERTY TAXES 22,600 PROPERTY TAX REVENUE 22,600 PROPERTY TAX REVENUE 19,500 NET POSITION BEGINNING OF YEAR 19,500 D TRANSFERS IN 65,800 TRANSFERS OUT 65,800
ORKSHEET
Government-Wide
8-12 PART A CONTINUED E CASH 22,850 DUE FROM OTHER FUNDS 15,750 SUPPLIES INVENTORY 3,500 CAPITAL ASSETS (NET) 21,600 ACCOUNTS PAYABLE 4,350 WAGES PAYABLE 490 INTEREST PAYABLE 600 BANK NOTE PAYABLE 10,000 ADVANCE FROM ENTERPRISE FUND 17,000 NET POSITION 31,260 NET POSITION 5,660 GENERAL GOVERNMENT EXPENDITURES 5,660 INTEREST EXPENSE 600 NET POSITION 600
Chapter 8
Statements, Capital Assets, Long-Term Debt
8 Government-Wide
8-13 JEFFERSON COUNTY STATEMENT OF ACTIVITIES FOR THE YEAR ENDED 12-31-2017 PROGRAM REVENUES NET (EXPENSE)REVENUE AND CHANGE IN NET POSITION FUNCTIONS/PROGRAMS EXPENSES CHARGES FOR SERVICES OPERATIONAL GRANTS AND CONTRIBUTIONS CAPITAL GRANTS AND CONTRIBUTIONS GOVERNMENTAL ACTIVITIES BUSINESSTYPE ACTIVITIES TOTAL GOVERNMENTAL ACTIVITIES: GENERAL GOVERNMENT $ 175,900 $ - $ (175,900) $ (175,900) LIBRARY 12,700 - (12,700) (12,700) DEPRECIATION 316,000 (316,000) (316,000) INTEREST 29,970 (29,970) (29,970) TOTAL GOVERNMENTAL ACTIVITIES 534,570 - - - (534,570) (534,570) BUSINESS TYPE ACTIVITIES WATER AND SEWER 768,000 805,000 37,000 37,000 TOTAL GOVERNMENT $ 1,302,570 $ 805,000 $ - $ - $ (534,570) $ 37,000 (497,570) GENERAL REVENUES TAXES: PROPERTY TAXES 265,175 265,175 INTERGOVERNMENTAL REVENUES 280,000 280,000 INVESTMENT INCOME 21,100 21,100 TOTAL GENERAL REVENUES 566,275 - 566,275 CHANGE IN NET POSITION 31,705 37,000 68,705 NET POSITION, BEGINNING 8,660,458 41,650 8,702,108 NET POSITION, ENDING $ 8,692,163 $ 78,650 $ 8,770,813
Chapter
Statements, Capital Assets, Long-Term Debt
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt
8-13PART 3 (CONTINUED)
JEFFERSON COUNTY
STATEMENT OF NET POSITION
DECEMBER 31, 2017
8-14
GOVERNMENTAL ACTIVITIES BUSINESSTYPE ACTIVITIES TOTAL ASSETS CASH $ 363,198 $ 22,000 $ 385,198 INVESTMENTS 502,400 - 502,400 TAXES RECEIVABLE (NET) 51,325 - 51,325 INTEREST RECEIVABLE 1,700 - 1,700 INTERNAL BALANCES CURRENT 15,750 (15,750)DUE FROM OTHER GOVERNMENTS 280,000 - 280,000 INVENTORIES 3,850 18,000 21,850 INTERNAL BALANCES LONGTERM (17,000) 17,000CAPITAL ASSETS,NET OF ACCUMULATED DEPRECIATION 8,247,500 255,000 8,502,500 TOTAL ASSETS $ 9,448,723 $ 296,250 $ 9,744,973 LIABILITIES ACCOUNTS PAYABLE 10,450 16,750 27,200 WAGES PAYABLE 1,340 850 2,190 ACCRUED INTEREST PAYABLE 10,770 - 10,770 CONTRACT PAYABLE 25,000 - 25,000 BANK NOTE PAYABLE 10,000 - 10,000 BONDS PAYABLE 678,000 200,000 878,000 PREMIUM ON BONDS SOLD 21,000 - 21,000 TOTAL LIABILITIES 756,560 217,600 974,160 NET POSITION NET INVESTMENT IN CAPITAL ASSETS 7,548,500 55,000 7,603,500 RESTRICTED 936,000 - 936,000 UNRESTRICTED 207,663 23,650 231,313 TOTAL NET POSITION $ 8,692,163 $ 78,650 $ 8,770,813
Chapter 8 Government-Wide Statements, Capital Assets,
8-15 8-14PART 1 WORKSHEET JOURNAL ENTRIES TO CONVERT TO THE ACCRUAL BASIS OF ACCOUNTING A1 CAPITAL ASSETS (NET) 16,990,000 NET POSITION - BEGINNING 16,990,000 A2 DEPRECIATION EXPENSE 3,100,000 CAPITAL ASSETS (NET) 3,100,000 A3 CAPITAL ASSETS (NET) 11,180,818 CAPITAL EXPENDITURES 11,180,818 B1 NET POSITION - BEGINNING 10,596,000 BONDS PAYABLE 10,596,000 B2 OFS: PROCEEDS FROM ISSUANCE OF DEBT 9,675,400 BONDS PAYABLE 9,675,400 B3 BONDS PAYABLE 954,326 EXPENDITURE - DEBT PRINCIPAL 954,326 B4 INTEREST EXPENSE 167,000 ACCRUED INTEREST PAYABLE 167,000 B5 NET POSITION - BEGINNING OF YEAR 186,500 INTEREST EXPENSE 186,500 C1 DEFERRED INFLOWS PROPERTY TAXES 185,064 PROPERTY TAX REVENUE 185,064 C2 PROPERTY TAX REVENUE 188,400 NET POSITION - BEGINNING 188,400 D1 NET POSITION - BEGINNING 2,471,480 LANDFILL CLOSURE COST LIABILITY 2,471,480 D2 PUBLIC WORKS EXPENSE 128,520 LANDFILL CLOSURE COST LIABILITY 128,520 E1 OFS: TRANSFERS FROM OTHER FUNDS 2,730,144 OFU: TRANSFERS TO OTHER FUNDS 2,730,144
Long-Term Debt
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt
CITY OF COTTONWOOD
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31, 2017
PRIMARY GOVERNMENT
NET (EXPENSE) REVENUE AND CHANGE IN NET
POSITION
8-16
FUNCTIONS/PROGRAMS EXPENSES CHARGES FOR SERVICES GOVERNMENTAL ACTIVITIES BUSINESSTYPE ACTIVITIES TOTAL GOVERNMENTAL ACTIVITIES: GENERAL GOVERNMENT 3,074,532 1,156,497 (1,918,035) - (1,918,035) JUDICIAL ADMINISTRATION 4,400,325 44,018 (4,356,307) - (4,356,307) PUBLIC SAFETY 6,328,125 275,492 (6,052,633) - (6,052,633) PUBLIC WORKS 4,753,945 - (4,753,945) - (4,753,945) HEALTH AND WELFARE 4,418,294 - (4,418,294) - (4,418,294) EDUCATION 3,887,834 - (3,887,834) - (3,887,834) PARKS AND RECREATION 3,155,325 604,359 (2,550,966) - (2,550,966) COMMUNITY DEVELOPMENT 1,793,013 51,611 (1,741,402) - (1,741,402) DEPRECIATION EXPENSE 3,100,000 (3,100,000) - (3,100,000) INTEREST ON LONG-TERM DEBT 1,106,318 - (1,106,318) - (1,106,318) TOTAL GOVERNMENTAL ACTIVITIES 36,017,711 2,131,977 (33,885,734) - (33,885,734) BUSINESS TYPE ACTIVITIES WATER 4,041,987 5,385,233 1,343,246 1,343,246 SOLID WASTE 1,556,633 1,851,433 294,800 294,800 PARKING 481,869 461,107 (20,762) (20,762) TOTAL BUSINESS-TYPE ACTIVITIES 6,080,489 7,697,773 - 1,617,284 1,617,284 TOTAL PRIMARY GOVERNMENT 42,098,200 9,829,750 (33,885,734) 1,617,284 (32,268,450) GENERAL REVENUES PROPERTY TAXES 24,583,914 24,583,914 OTHER LOCAL TAXES 11,403,125 11,403,125 MISCELLANEOU S 1,302,422 1,302,422 TRANSFERS (526,755) 526,755TOTAL GENERAL REVENUES 36,762,706 526,755 37,289,461 CHANGE IN NET POSITION 2,876,972 2,144,039 5,021,011 NET POSITION, BEGINNING 17,671,149 29,897,624 47,568,773 NET POSITION, ENDING 20,548,121 32,041,663 52,589,784
Chapter 8 Government-Wide Statements, Capital Assets, Long-Term Debt
SHADED AREAS ARE BUSINESS-TYPE ACTIVITIES THE AMOUNTS ARE ASSUMED AND NOT PART OF THE EXERCISE.
8-14PART 3 CITYOF COTTONWOOD STATEMENT OF NET POSITION AS OF DECEMBER 31, 2017 PRIMARY GOVERNMENT GOVERNMENTAL BUSINESS-TYPE PRIMARY ASSETS ACTIVITIES ACTIVITIES GOVERNMENT CASH AND CASH EQUIVALENTS 8,161,351 4,025,000 12,186,351 INVESTMENTS 3,312,992 5,871,042 9,184,034 INVENTORY 33,126 71,042 104,168 RECEIVABLES (NET)TAXES RECEIVABLE 2,872,611 2,872,611 INTEREST RECEIVABLE 693,392 26,573 719,965 DUE FROM OTHER GOVERNMENTS 1,328,448 292,775 1,621,223 OTHER ASSETS 23,747 23,747 INVESTMENT IN PERMANENT ENDOWMENT 3,875,600 - 3,875,600 CAPITAL ASSETS (NET OF ACCUMULATED DEPRECIATION) 25,070,818 42,142,915 67,213,733 TOTALASSETS 45,372,085 52,429,347 97,801,432 LIABILITIES ACCOUNTS PAYABLE $ 2,320,134 493,849 2,813,983 ACCRUED WAGES AND BENEFITS 419,756 473,168 892,924 ACCRUED INTEREST PAYABLE 167,000 167,000 LANDFILL POST CLOSURE CARE COSTS LIABILITY 2,600,000 562,480 3,162,480 BONDS PAYABLE 19,317,074 18,858,187 38,175,261 TOTAL LIABILITIES 24,823,964 20,387,684 45,211,648 NET POSITION NET INVESTMENT IN CAPITAL ASSETS 5,753,744 23,284,728 29,038,472 RESTRICTED 4,447,614 - 4,447,614 UNRESTRICTED 10,346,763 8,756,935 19,103,698 TOTAL NETPOSITION $20,548,121 32,041,663 52,589,784
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