2012 Comprehensive Annual Financial Report - the City of Tukwila

CITY OF TUKWILA: 2012 CAFRNOTES TO THE FINANCIAL STATEMENTSNOTE 5 – INTERFUND TRANSACTIONSInterfund activity is the term used to describe similar financial transactions between funds of the primarygovernment.Reciprocal interfund activity involves the exchange of equal or almost equal value between funds.Services Provided/Used – Transactions that would be treated as revenues, expenditures or expensesif they involve external organizations, such as buying goods and services in return for equal or almostequal value, are similarly treated when they involve other funds of the City of Tukwila.Interfund Loans/Advances – Loans between funds are classified as interfund loans receivable andpayable or as advances to and from other funds in the fund statements. Interfund loans are offset by areservation of fund equity. Interfund loans are subject to elimination upon consolidation.Nonreciprocal interfund activity does not involve the exchange of equal or almost equal value betweenfunds.Transfers – Transactions to support the operations of other funds are recorded as “Transfers” andclassified with “Other Financing Sources or Uses” in the fund statements. Transfers betweengovernmental or proprietary funds are netted as part of the reconciliation to the government-widefinancial statements.Contributions – Contributions to the capital of enterprise or internal service funds, transfers of capitalassets between proprietary and governmental funds, transfers to establish or reduce working capital inother funds, and transfers of remaining balances when funds are closed are classified non-operatingrevenue.Reimbursements – Repayments from funds responsible for expenditures or expenses to the funds thatinitially paid for them. These transactions are expenditures/expense in the fund responsible and as areduction of expenditure/expensed in the fund being reimbursed.There were no interfund loans outstanding at December 31, 2012. Interfund transfers were as follows:SUMMARY OF INTERFUND TRANSFERSOther InternalGovernment and Internal General Government ServiceService Funds Fund Funds Funds TotalTransfers In $ 2,330,665 $ 5,295,127 $ - $ 7,625,792Transfers Out (5,619,148) (555,210) (394,591) (6,568,949)Net Transfers In (Out) $ (3,288,483) $ 4,739,917 $ (394,591) $ 1,056,843Water/Sewer Surface Water Foster GolfProprietary Funds Utility Utility Course TotalTransfers In $ 98,460 $ - $ 225,000 $ 323,460Transfers Out (964,357) (400,786) (15,160) (1,380,303)Net Transfers In (Out) $ (865,897) $ (400,786) $ 209,840 $ (1,056,843)The principal purposes for interfund transfers include interfund subsidies and transfers into debt serviceand capital projects funds.70