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CITY OF EUGENE, OREGON <br />Notes to Required Supplementary Information <br />(3) <br />Budget to GAAP Reconciliation <br />Sections of Oregon Revised Statutes (Oregon Budget Law) require mosfi transactions be budgeted on the <br />modified accrual basis of accounting. However, there are certain transactions where statutory budget <br />requirements conflict with generally accepted accounting principles (GAAP). The following discusses the <br />differences between the budget basis and GAAP basis of accounting for the General Fund and the Community <br />Development Fund. <br />Net change in fund balance -budget basis <br />Budget resources not qualifying as revenues or other financing <br />sources under GAAP: <br />Indirect and other cost reimbursements received are reported as <br />revenues or other financing sources on a budget basis. Such <br />receipts are reclassified as a reduction of expenditures on a <br />GAAP basis. <br />Revenues and other financing sources required by GAAP not <br />qualifying as budget resources: <br />Adjustment for fair value of investments at year end is reported as <br />miscellaneous revenue on a GAAP basis. Such revenues are not <br />reflected on a Budget basis. <br />Budget expenditures not qualifying as expenditures or other <br />financing uses under GAAP: <br />Indirect and other costs reimbursed are reported as expenditures on <br />a budget basis. Such disbursements are reclassified as a reduction <br />of revenues and other financing sources on a GAAP basis. <br />Prepaid expenses are recorded in the year paid on a budget basis. <br />However, such expenses are matched to the accounting period <br />benefited under GAAP. <br />Net change in fund balance -GAAP basis. <br />Community <br />General Development <br />$ (872,108) 465,983 <br />(6,757,895) p <br />89,015 2,542 <br />6,757,895 0 <br />69,164 0 <br />$ (713,929) 468,525 <br />Principle payments received of $1,348,561 and loans granted of $2,189,520 are reported in the Community <br />Development Fund as other financing sources and non-departmental expenditures, respectively. Such <br />amounts have been reclassified as revenues and departmental expenditures on a GAAP basis. In addition, <br />indirect cost reimbursements are reclassified from transfers to departmental administrative expenditures on a <br />GAAP basis. Such reclassifications are not included in the above schedule. <br />80 <br />