CHAPTER 3:

GOVERNMENTAL OPERATING STATEMENT ACCOUNTS; BUDGETARY ACCOUNTING

OUTLINE

Number *ue$&io+$: 3-1 3-2 3-3 3-4 3-# 3-( 3-) 3-+ 3-, 3-10 C#$e$: 3-1 3-2 3-3

Topi

T!pe"T#$%

S&#&u$ 're: (3"e) New New 3-1 revised 3-2 revised Same Same Same Same Same Same New New Same 3-13 revised Revised 3-3 revised 3-4 revised 3-# revised 3-( revised Same New 3-+ revised

GASBS 34 Reporting Model Statement of activities format Direct and indirect expenses rogram and general reven!e $!nd e%!it& vs' net assets Real acco!nts and b!dgetar& acco!nts Expendit!re classifications - examples Reven!e classifications -!dgets - .// basis !blic sc"ool s&stems Reven!e and expense1expendit!re classification -!dgetar& comparison sc"ed!le *"arter sc"ools 4p!blic sc"ool academies5

Explain Describe Define Disting!is" Define and compare Disting!is" *lassif& *lassif& Explain Explain 2nternet3 examine3 describe 2nternet3 examine3 describe 2nternet3 explain Examine M!ltiple *"oice 7o!rnal Entries 7o!rnal Entries *alc!late *alc!late *alc!late 7o!rnal entries: *alc!late repare

E,er i$e$"Prob-em$: 3-1 */$R 3-2 6ario!s 3-3 7o"nson *it&8b!dgets 3-4 7o"nson *it&8appropriations 4cont9d5 3-# .$ trial balance and closing entries 3-( S!bsidiar& ledgers 3-) /ppropriations3 enc!mbrances3 expendit!res 3-+ Recording b!dget and operating transactions 3-, .overnment-wide statement of activities

3-1

CHAPTER 3: GOVERNMENTAL OPERATING STATEMENT ACCOUNTS; BUDGETARY ACCOUNTING

/nswers to ;!estions 3-1' <"ereas t"e governmental f!nd financial statements report c!rrent financial reso!rces information intended to "elp !sers assess s"ort-term fiscal accountability3 t"e .overnmental /ctivities col!mn of t"e government-wide financial statements "elps !sers assess long-term operational acco!ntabilit& b& reporting financial information !sing t"e economic reso!rces meas!rement foc!s and accr!al basis of acco!nting8similar to t"e foc!s and basis !sed for b!siness financial statements' ="e government-wide financial statements are one of t"e principal innovations of t"e GASBS 34 reporting model' >sing t"e net 4expense5 or reven!e format3 sometimes referred to as t"e ?cost of services@ approac"3 identifies t"e extent to w"ic" eac" f!nction or program is self-s!pporting from fees and intergovernmental aid3 or m!st be s!bsidiAed b& general reven!es of t"e government' Direct expenses are t"ose specificall& associated wit" a f!nction or program' 2ndirect expenses are t"ose t"at are not directl& linBed to an identifiable f!nction or program' Depreciation expense is reported as a direct expense w"en it relates to capital assets t"at are clearl& identified wit" a f!nction or program beca!se it capt!res a real cost of !sing capital assets to provide t"at service f!nction or program' Even depreciation expense for infrastr!ct!re assets s"o!ld be reported as a direct expense of t"e p!blic worBs or transportation f!nction3 if t"at is t"e f!nction responsible for t"ose assets' 2nterest on general long-term liabilities is an indirect expense and s"o!ld be reported as a separate line item before total governmental activities beca!se it generall& is inc!rred to s!pport a broad arra& of government f!nctions and programs' a. b' c. d' e' f. g. .eneral reven!es' rogram reven!es. rogram reven!es' rogram reven!es' rogram reven!es' .eneral reven!es' .eneral reven!es'

3-2'

3-3'

3-4'

3-#'

$!nd e%!it& is t"e arit"metic difference between t"e amo!nt of financial reso!rces and amo!nt of liabilities recorded in t"e f!nd' $or governmental f!nds3 f!nd e%!it& is partitioned between reserved f!nd balance acco!nts and !nreserved f!nd balance acco!nts' /t t"e government-wide level3 t"e co!nterpart to f!nd e%!it& is net assets 4assets min!s liabilities53 w"ic" is partitioned between !nrestricted and restricted net assets and invested in capital assets3 net of related debt'

3-2

*"' 33 /nswers3 3-# 4*ont9d5

="e operating statement acco!nts 4reven!es3 expendit!res3 and ot"er financing so!rces1!ses5 and b!dgetar& acco!nts 4estimated reven!es3 appropriations3 enc!mbrances3 and estimated ot"er financing so!rces1!ses5 of governmental f!nds are all closed to 4!nreserved5 f!nd balance at &ear-end' $or governmental activities3 reven!es and expenses are closed to !nrestricted net assets3 !nless t"e& are restricted' 3-(' Definitions of t"ese terms are given in t"e .lossar& of t"e text' -elow are briefer statementsC a. Expenditures and Encumbrances are bot" c"arges against appropriations' /n encumbrance is a c"arge for an estimated amo!nt at t"e time goods are ordered: an expenditure is a c"arge for an act!al amo!nt at t"e time t"e goods are received 4accr!al and modified accr!al basis5 or paid 4cas" basis5' ="ese acco!nts are !sed in t"e governmental f!nds beca!se t"ose f!nds !tiliAe b!dgetar& acco!nting' Revenues are increases in net assets of t"e government as a w"ole or of a f!nd ot"er t"an from interf!nd transfers or debt iss!e proceeds3 recogniAed at t"e time t"e increase is earned 4accr!al basis53 available for !se 4modified accr!al basis5 or received in cas" 4cas" basis5' Estimated revenues are amo!nts expected to be available for !se or received !nder enabling legislation d!ring a b!dget period' Estimated Reven!es is a b!dgetar& acco!nt representing t"e expected amo!nt of reven!es to be realiAed from vario!s so!rces' Encumbrances is defined in a above' Reserve for Encumbrances is a balance s"eet acco!nt representing t"e amo!nt segregated from $!nd -alance for expected liabilities res!lting from p!rc"ase orders and contracts iss!ed and will be reported in t"e governmental f!nds balance s"eet' Reserve for Encumbrances is defined in c above' ="e Fund Balance of a governmental f!nd is t"e excess of f!nd assets over f!nd liabilities3 appropriations3 and reserves: in s"ort3 t"e assets available for appropriation Ddefined in e belowE in governmental f!nds' Expenditures is defined in a above' /n Appropriation is an a!t"oriAation b& t"e legislative branc" for administrators to inc!r expendit!res for specified p!rposes not to exceed specified amo!nts' >s!all& t"e a!t"oriAation is for a limited time' /ppropriations is a b!dgetar& acco!nt' Expenditures3 defined in a above3 represent o!tflow of c!rrent financial reso!rces for asset ac%!isition as well as for salaries3 s!pplies for immediate cons!mption3 travel3 etc'8w"atever is specified in t"e appropriations and is t"e term !sed in f!nd financial statements' Expenses3 in governmental acco!nting as well as b!siness acco!nting3 are expired costs: t"e f!ll cost of services or goods

b.

c.

d'

e'

f'

3-3

*"' 33 /nswers 4*ontFd5

cons!med in providing services to citiAens and ot"ers' Expenses are fo!nd in t"e government-wide financial statements as well as in t"e proprietar& financial statements' 3-)' a' b' c' d' e' a' b. c' d' GrganiAation !nit $!nction /ctivit& /ctivit& GbHect =axes *"arges for services Iicenses and permits $ines and forfeits f' g' . i. !. e. f. g' ' -ot" c"aracter and obHect rogram $!nction GrganiAation !nit GbHect 2ntergovernmental reven!e Miscellaneo!s reven!es *"arges for services Iicenses and permits

3-+'

3','

2n order for b!dget to act!al comparisons to be meaningf!l3 act!al reven!es and expendit!res m!st be reported in t"e same manner as t"e b!dgeted amo!nts' /ct!al reven!es and expendit!res reported in t"e statement of reven!es3 expendit!res3 and c"anges in f!nd balances s"o!ld be on t"e .// basis' ./S- standards identif& several possible t&pes of differences between .// and b!dgetar& financial acco!nting' ="ese incl!de basis3 timing3 perspective3 and entit&' GASBS 34 re%!ires t"at reconciliation of t"e differences between amo!nts reported in t"e .// basis operating statement and t"ose reported in t"e b!dgetar& comparison sc"ed!le3 eit"er on t"e face of t"e b!dgetar& comparison sc"ed!le or on a separate page' !blic sc"ool s&stems are expected to follow t"e classification s&stem specified b& t"e National *enter for Ed!cation Statistics 4N*ES53 as refined or mandated b& a state ed!cation oversig"t bod&' ="e N*ES s&stem combines t"e ./S- expendit!re classification str!ct!re into nine categories3 most of w"ic" are necessar& for ade%!ate internal management and comparable financial reporting across sc"ools' ="e N*ES reven!e classification sc"eme also gro!ps classifications into n!mero!s categories3 b!t are generall& classified b& f!nd3 so!rce3 and proHect1reporting code' ="e N*ES expendit!re and reven!e dimensions s"o!ld be compared wit" t"e corresponding ./S- expendit!re and reven!e classifications described in t"is c"apter' ./S- standards re%!ire t"at expendit!res be classified b& f!nd3 f!nction or program3 organiAation !nit3 activit&3 c"aracter3 and obHect and t"at reven!es be classified b& f!nd and so!rce' *omparison of t"e N*ES and ./S- classification s"ow t"at t"e& are generall& compatible3 b!t t"e N*ES classification str!ct!re is considerabl& more detailed to meet t"e !ni%!e reporting needs of p!blic sc"ool s&stems'

3'10'

Sol!tions to *ases 3-1' St!dents s"o!ld easil& be able to locate a cit&9s <eb site3 t"en explore t"e $inance Department 4or comparable name5 linB and looB for linBs to financial reports' 3-4

*"' 33 Sol!tions3 *ase 3-1 4*ont9d5

/lternativel&3 a n!mber of cities "ave linBs to t"eir */$Rs from t"e ?./S- 34@ linB of t"e ./S- <eb site 4www'gasb'org5' Responses to eac" of t"e %!estions in t"is case will depend on "ow a partic!lar cit& classifies its reven!es and expenses1expendit!res' a. Gccasionall&3 one ma& find a cit& t"at classifies its program reven!es and direct expenses b& program3 b!t f!nctional classifications3 similar to t"ose described in t"is c"apter3 are m!c" more common' 2n most cases3 all f!nction or program line items on t"e statement of activities will report a net expense3 wit" n!mbers in parent"eses' b. Gn t"e statement of reven!es3 expendit!res3 and c"anges in f!nd balances3 reven!es and expendit!res are reported in separate col!mns for t"e .eneral $!nd and ot"er ma!or governmental f!nds' 2nformation for all nonmaHor governmental f!nds is reported in aggregate in a single col!mn' St!dents will liBel& find t"at t"e reven!es reported on t"is statement are classified b& so!rce 4taxes3 licenses and permits3 c"arges for services3 etc'5' Some cities will report a different amo!nt for tax reven!es on t"eir statement of activities t"an on t"eir statement of reven!es3 expendit!res3 and c"anges in f!nd balances beca!se all tax reven!es levied for t"e &ear will be reported on t"e former statement3 w"ile t"ose t"at will not be collected d!ring t"e c!rrent fiscal &ear or wit"in (0 da&s t"ereafter will be reported as deferred taxes on t"e latter statement' c. Expendit!res will generall& be classified b& f!nction on t"e statement of reven!es3 expendit!res3 and c"anges in f!nd balances and3 infre%!entl&3 b& program' St!dents are almost certain to find different amo!nts reported for expenses on t"e statement of activities and expendit!res on statement of reven!es3 expendit!res3 and c"anges in f!nd balances' /mong ot"er explanations3 expenses excl!de o!tla&s for capitaliAed assets3 b!t incl!de depreciation expense: expendit!res incl!de capital o!tla&s b!t excl!de depreciation expense' .enerall&3 expenses and expendit!res will not be t"e same amo!nts for t"e reasons H!st explained' 3'2' /gain t"e responses to individ!al %!estions will depend on t"e practices of t"e partic!lar cit& selected' Some general expectations are described for eac" %!estion below' a. =&picall& more detail is provided for reven!es and expendit!res in t"e b!dgetar& comparison sc"ed!le3 t"o!g" not alwa&s' ="e reason for incl!ding more detail in t"e b!dgetar& comparison sc"ed!le3 bot" for reven!es and expendit!res3 is to better matc" t"e level of detail !sed in t"e b!dget doc!ment' $or reven!es3 cities often report b!dget and act!al information for s!bclasses of so!rces3 s!c" as vario!s t&pes of taxes' $or expendit!res3 cities sometimes report b!dget and act!al information for organiAation !nits and obHects' b. St!dents will probabl& find t"at act!al reven!es on t"e b!dgetar& comparison sc"ed!le agree in amo!nt wit" t"ose reported on t"e .// operating statement' 2f a difference is noted between t"ese amo!nts3 it is liBel& attrib!table to reven!es being recogniAed on a cas" basis for b!dgetar& p!rposes3 rat"er t"an modified accr!al' c. Some st!dents will discover t"at act!al expendit!res on t"e b!dgetar& comparison sc"ed!le differ from t"ose reported on t"e .// operating statement' ="e explanation given in most of t"ese cases will be t"at expendit!res on t"e b!dgetar& comparison sc"ed!le also incl!de enc!mbrances o!tstanding at &ear-end' 3-5

*"' 33 Sol!tions3 *ase 3-2 4*ont9d5

d. 2f act!al reven!es and1or expendit!res are prepared on a non-.// b!dgetar& basis3 t"e b!dgetar& comparison sc"ed!le s"o!ld indicate s!c"3 eit"er in t"e sc"ed!le "eading or t"e /ct!al col!mn "eading' e. /lt"o!g" a variance col!mn is not re%!ired b& ./S- standards3 it is diffic!lt to imagine a cit& not providing one as a service to financial report !sers' 3'3' 2n most states3 c"arter sc"ools 4or p!blic sc"ool academies5 are considered p!blic sc"ools receiving p!blic f!nds' *onse%!entl&3 t"ese sc"ools s"o!ld follow ./S- standards in order to ens!re t"at financial statements conform to generall& accepted acco!nting principles' .enerall&3 t"ese sc"ools are small and ma& onl& "ave need for a .eneral $!nd and a special reven!e f!nd for t"eir food service program' ="e reven!e and expense classification sc"eme described in t"e /ppendix to *"apter 33 based on N*ES g!idance3 is an appropriate starting place for b!ilding a c"art of acco!nts and an acco!nting information s&stem' -!dgetar& acco!nting is re%!ired b& .// ' ="e >'S' *"arter Sc"ools website 4www'!sc"artersc"ools'org 5 provides val!able g!idance in developing s&stems of financial and operational acco!ntabilit& for t"ose w"o are new to c"arter sc"ools3 as well as linBs to ot"er reso!rces' St!dents s"o!ld c"ecB t"eir own state9s Department of Ed!cation 4or comparable agenc&5 for ot"er g!idance for traditional pre-J t"ro!g" 12 sc"ools' ="e Mic"igan /ssociation of !blic Sc"ool /cademies also provides reso!rces for c"arter sc"ools and t"eir acco!ntants 4www'c"artersc"ools'org 5' Sol!tions to Exercises and roblems 3-1' Eac" st!dent s"o!ld "ave a different governmental ann!al report3 so will "ave different answers to t"e %!estions in t"is exercise' Some time spent in class to allow st!dents to report on t"eir own answers and to get an idea of t"e range of answers of ot"er st!dents is !sef!l' 1' 2' 3' 4' #' c' d. a. c' a. (' )' +' ,' 10' c' c. b. c. b.

3-2'

3-6

*"apter 33 Sol!tions 4*ont9d5

3-3. a.

JOHNSON CITY Estimated revenues totalcoming year $%%ro%riations totalcoming year T'ere(ore" (und )alance at t'e end o( t'e current year must )e at least or t'e (und *ould )e t'ro*n into a de(icit. +eneral ,edger -e)its Credits Su)sidiary ,edger -e)its Credits 3##"### !"3##"### !"&##"###

b.

ESTI.$TE- /E0EN1ES 21N- 3$,$NCE $44/O4/I$TIONS Estimated Revenues Ledger: T$5ES ,ICENSES $N- 4E/.ITS 2INES $N- 2O/2EITS

!"3##"### 3##"### !"&##"###

&"###"### 6##"### 7##"### 8"###"###

INTE/+O0E/N.ENT$, /E0EN1ES Appropriations Ledger: +ENE/$, +O0E/N.ENT 413,IC S$2ETY HE$,TH $N- ;E,2$/E 413,IC ;O/<S

9"!##"### :"###"### 9"6##"### 9"!##"###

3-7

*"' 33 Sol!tions 4*ont9d5

3-:. +eneral ,edger -e)its a. ENC1.3/$NCES 8##6 /ESE/0E 2O/ ENC1.3/$NCES 8##6 Encumbrances Ledger= +ENE/$, +O0E/N.ENT 413,IC S$2ETY 413,IC ;O/<S b. 9##"### :##"### 97#"### &7#"### &7#"### Su)sidiary ,edger Credits -e)its Credits

4urc'ase orders issued )y a governmental (und 'ave t'e e((ect o( using all or a %ortion o( one or more a%%ro%riations (or t'at (und. Issuance o( %urc'ase orders or ot'er commitment documents is a ste% in t'e e>%enditure o( an a%%ro%riation? administrators may )e su)@ect to legal %enalties i( t'ey e>%end more resources t'an *ere a%%ro%riated. /ecording encum)rances 'el%s administrators avoid overe>%ending a%%ro%riations. T'e same legal issues do not e>ist in )usiness organiAations" alt'oug' a *ell-managed )usiness s'ould certainly Bee% tracB o( outstanding %urc'ase orders and contracts to 'ave a clear understanding o( *'at transactions are in %rocess t'at *ill result in t'e acCuisition o( assets" t'e incurring o( e>%enses" and t'e incurring o( lia)ilities.

3-8

*"' 33 Sol!tions 4*ontFd5

3-7. a.

2und 3alance at &-3#-8##6 a(ter all closing entries is 99:". -e)its Credits

Closing Journal Entries at 6-30-200 = D9E $44/O4/I$TIONS 21N- 3$,$NCE ESTI.$TE- /E0EN1ES D8E /E0EN1ES 21N- 3$,$NCE E54EN-IT1/ES ENC1.3/$NCES 9":7F"3## 3"F## 9"3:!"### 998"### 9"779"&## :"&## 9"77&"8##

Journal Entr! at "-#-200" to record t$e budget %or t$e 200 %iscal !ear: ESTI.$TE- /E0EN1ES $44/O4/I$TIONS 21N- 3$,$NCE 21N- 3$,$NCE GG :"&## 988"7## D9E :"&## D8E 3"F## 99:"8## 4ost-closing )alance at &-3#-8##6 3alance at &-3#-8##F To record 2Y 8##6 )udget 4re-closing )alance at &-3#-8##6 9"77&"8## 9"779"&## :"&##

b.

2und 3alance at &-3#-8##F" t'e )eginning o( t'e 2Y 8##6" *as 99F"!## D 988"7## H :"&##E.

3-9

*"' 33 Sol!tions 4*ontFd5 3-&. a. 9:"!6#"### Dt'e sum o( t'e amounts %resently in t'e Estimated /evenues column o( t'e su)sidiary ledgersE. b. 97"###"### Dt'e sum o( t'e #9I#9 entries in t'e Estimated /evenues columnE c. 9. Yes 8. #8I86 D:7 & (olio entry to 4ro%erty Ta>esE 3. 8#"###

:. -ecreased d. e. 98"#6#"### Dt'e sum o( t'e amounts in t'e /evenues columnE 4ro%erty ta> revenue is )eing accrued? revenue (rom t'e ot'er t'ree sources is )eing recogniAed *'en t'e cas' is received? t'at is" *'en it is (irst measura)le and availa)le according to t'e modi(ied accrual )asis o( accounting.

3-10

*"' 33 Sol!tions 4*ontFd5

3-F. a.

&8"8##. T'e re(und o( %rior year e>%enditure and t'e re(und on 4.O. 37# do not add to a%%ro%riation aut'ority t'e (ormer is generally re%orted as revenue o( t'e current year? t'e latter is a reduction o( e>%enditures (rom t'is yearJs a%%ro%riation. Similarly" t'e cost o( stationery trans(erred to t'e To*n ;ater 1tility is a reim)ursement o( e>%enditures (rom t'is yearJs a%%ro%riation. T'e unaut'oriAed trans(er o( :&"### (rom O((ice Su%%lies to 4ersonal Services s'ould )e disregarded.

b.

None. T'e outstanding %urc'ase orders" K3F6 and K367" are not (or o((ice su%%lies )ut (or o((ice eCui%ment and s'ould not 'ave )een c'arged to t'is a%%ro%riation. Clerical errors in recording t'e encum)rance (or K37&" t'e encum)rance credit (or K37#" and t'e erroneous c'arge o( K36# to t'is a%%ro%riation and (ailure to credit Encum)rances *'en K36# *as (illed do not a((ect t'e com%utation o( t'e correct ans*er to b" alt'oug' t'ey *ould need to )e corrected in t'e accounti( t'e Lcom%arisonL is a su)sidiary ledger account.

c.

9"99# DK37#" &#7? K37&" :8#? K3F#" :87? less 33# and 9# considered reim)ursements o( t'is yearJs e>%enditures o( t'is a%%ro%riationE.

d.

&9"#!# D &8"8## - 9"99#E.

3-11

*"' 33 Sol!tions 4*ontFd5

3-6. +eneral ,edger -e)its a. ESTI.$TE- /E0EN1ES 21N- 3$,$NCE $44/O4/I$TIONS Estimated Revenues Ledger: T$5ES ,ICENSES $N- 4E/.ITS 2INES $N- 2O/2EITS INTE/+O0E/N.ENT$, /E0EN1ES Appropriations Ledger: +ENE/$, +O0E/N.ENT 413,IC S$2ETY 413,IC ;O/<S 4$/<S $N- /EC/E$TION .ISCE,,$NEO1S b. 9. C$SH /E0EN1ES Revenues Ledger: ,ICENSES $N- 4E/.ITS 2INES $N- 2O/2EITS 39"### 98"### :3"### :3"### 7##"### 9"&##"### 37#"### 97#"### 7#"### 8##"### 9"!##"### 37#"### 87#"### 8"F##"### 7#"### 8"&7#"### Credits Su)sidiary ,edger -e)its Credits

3-12

*"' 33 Sol!tions3 3-+ 4*ontFd5

8.

ENC1.3/$NCES8##6 /ESE/0E 2O/ ENC1.3/$NCES8##6 Encumbrances Ledger: +ENE/$, +O0E/N.ENT 413,IC S$2ETY 413,IC ;O/<S 4$/<S $N- /EC/E$TION .ISCE,,$NEO1S

8!"!## 8!"!## F":## 99"3## &"9## :"8## !## 8!"9## 8!"9## 8!"8## 8!"8## F":## 9#"F## 7"!## :"8## !## F"3## 9#"6## &"9## :"9## !##

3.

/ESE/0E 2O/ ENC1.3/$NCES8##6 ENC1.3/$NCES8##6 E54EN-IT1/ES8##6 C$SH Encumbrances Ledger: +ENE/$, +O0E/N.ENT 413,IC S$2ETY 413,IC ;O/<S 4$/<S $N- /EC/E$TION .ISCE,,$NEO1S E&penditures Ledger: +ENE/$, +O0E/N.ENT 413,IC S$2ETY 413,IC ;O/<S 4$/<S $N- /EC/E$TION .ISCE,,$NEO1S

3-13

*"' 33 Sol!tions3 3-+ 4*ontFd5

c. C$,C1,$TION O2 31-+ETE- 31T 1N/E$,IME- /E0EN1ES $S O2 J1,Y 39" 8##F 1N/E$,IMESO1/CE 4/O4E/TY T$5ES ,ICENSES $N- 4E/.ITS 2INES $N- 2O/2EITS INTE/+O0E/N.ENT$, TOT$, 31-+ETE9"!##"### 37#"### 87#"### 8##"### 8"F##"### $CT1$, -#39"### 98"### -#:3"### /E0EN1E 9"!##"### 39!"### 836"### 8##"### 8"&7F"###

3-14

*"' 33 Sol!tions3 3-+ 4*ontFd5

d. C$,C1,$TION O2 $0$I,$3,E $44/O4/I$TIONS" $S O2 J1,Y 39" 8##F $0$I,$3,E $44/O4/I$TIONS +ENE/$, +O0E/N.ENT 413,IC S$2ETY 413,IC ;O/<S 4$/<S $N- /EC/E$TION .ISCE,,$NEO1S TOT$, 7##"### 9"&##"### 37#"### 97#"### 7#"### 8"&7#"### ENC1.3/$NCES -#&## 8## -#-#6## E54EN-IT1/ES F"3## 9#"6## &"9## :"9## !## 8!"8## $44/O4/I$TIONS :!8"F## 9"766"&## 3:3"F## 9:7"!## :!"9## 8"&8#"###

3-15

*"' 33 Sol!tions 4*ontFd5

3-!. City o( NoBomis Statement o( $ctivities D%artialE 2or t'e Year Ended -ecem)er 39" 8##6 Net DE>%enseE /evenue and C'anges in Net $ssets E>%enses 2unctionsI4rograms 4rimary +overnment General government Public sa et! #ealt$ an% sanitation &ulture an% recreation 'nterest on long(term %ebt *otal governmental activities $ 9,571 34,844 6,738 11,532 6,"68 $ 68,753 4rogram /evenues C'arges (or O%erating Services +rants $ 3,146 1,198 5,612 3,995 ))))))) $ 13,951 $ 843 1,3"7 2,45" )))))) $4,6"" Ca%ital +rants +overnmental $ctivities $ (5,582) (32,277) (1,126) (5,"87) (6,"68) (5",14") 56,3"" 1,2"" 1,958 2,653 62,111 11,971 126,673 $ 138,644

$ 62 )))) $ 62

+eneral revenues= Pro+ert! ta,es -nrestricte% grants an% contributions 'nvestment earnings .+ecial item/gain on sale o +ar0 lan% *otal general revenues an% s+ecial items &$ange in net assets 1et assets/2ul! 1, 2""7 1et assets/2une 3", 2""8

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