Comprehensive Annual Financial Report - City of Santa Monica

CITY OF SANTA MONICA, CALIFORNIA
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the fiscal year ended June 30, 2009
Net change in fund balances – total governmental funds $ 14,508,345
Amounts reported for governmental activities in the statement of activities are different because:
Capital assets
1) The acquisition of capital assets requires the use of current financial resources
but has no effect on net assets 37,516,792
2) The cost of capital assets is allocated over their estimated useful lives and reported
as depreciation expense in the statement of activities (22,552,850)
3) The disposal of capital assets is recorded as an expense in the statement of activities
but is not recorded in the fund statements (16,441,777)
Measurement focus:
4) Change in accrued interest payable 191,901
5) Principal payments on long-term bonded debt use current financial resources
but have no effect on net assets 8,375,000
6) Line of credit draws are recorded as other financing source in the fund statements but
but are recorded as a long term debt on the statement of net assets (15,485,324)
7) Long loans notes payable were recorded as other income on the fund statements but
but are recorded as a long term debt on the statement of net assets (400,000)
8) Bond premiums are recorded as other financing source in the fund statements but are
amortized in the statement of activities 20,366
9) Bond discounts are recorded as other financing uses in the fund statements but are
amortized in the statement of activities (12,485)
10) Costs of issuance are recorded as an expenditure in the fund statements but are
amortized in the statement of activities (165,158)
11) Deferred loss on refunding recorded as an expenditure in the fund statements but is
amortized in the statement of activities (201,951)
12) The increase in compensated absences liability does not require the use of current
financial resources but is recorded as an expense in the statement of activities (505,569)
13) Elimination of interest related to interfund loans that are recorded as an expenditure
on the fund statements but eliminated on the government-wide statements 942,420
14) Revenue recognized for fund statements had been previously recognized in the statement of activities (6,943,827)
15) Revenue not recognized for fund statements recognized in the statement of activities 86,154,302
16) The increase in OPEB liability does not require the use of current
financial resources but is recorded as an expense in the statement of activities (1,173,000)
17) The increase in pollution remediation liability does not require the use of current
financial resources but is recorded as an expense in the statement of activities (92,315,000)
Internal service funds:
18) Certain internal service funds are used by management to charge the costs of vehicle
management, information technology, and risk management to individual funds.
The net revenue of certain internal service funds is reported with
governmental activities 1,809,515
Change in net assets (statement of activities, governmental activities) $ (6,678,300)
See accompanying notes to basic financial statements.
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