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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON <br />Notes to Basic Financial Statements <br />(1) Summary of Significant Accounting Policies, continued <br />(G) Capital Assets, continued <br />Capital assets are reported net of accumulated depreciation in the Statement of Net Assets, and <br />depreciation expense is reported in the Statement of Activities in the urban renewal .redevelopment <br />function. <br />(H) Fund Balances <br />In the fund financial statements, governmental funds report reservations of fund balance for amounts that <br />are not available for appropriation or are legally restricted by outside parties for use for specific purposes. <br />(I) Indirect Expenses <br />The Agency's Statement of Revenues, Expenditures, and Changes in Fund Balances include <br />reimbursement to the City's Central Services department for general services provided to the Agency by <br />the City's General Fund. The charge for general service costs is based on an approved overhead rate <br />applied to direct costs. The indirect cost reimbursement has been included in program expenses in the <br />Statement of Activities. <br />(2) Reconciliation of Government-wide and Fund Financial Statements <br />(A) Explanation of Certain Differences Between the Government-wide Statement of Net Assets and the <br />Governmental Fund Balance Sheet <br />The Balance Sheet for governmental funds (Exhibit 3) includes a reconciliation between total fund <br />balances and total net assets in the Statement of Net Assets (Exhibit 1). The following are selected <br />elements of that reconciliation: <br />Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net <br />Assets at their net depreciable value. The details of this $6,658,188 difference are as follows: <br />Capital assets (net of accumulated depreciation) reported in <br />the Statement of Net Assets: <br />Land and construction in progress $ 3,765,494 <br />Other capital assets (net of accumulated depreciation) 2,892,694 <br />Net adjustment $ 6,658,188 <br />The Statement of Net Assets reports receivables at their net realizable value. However, receivables not <br />available to pay for current-period expenditures are deferred in governmental funds. The details of this <br />$777,121 difference are as follows: <br />Receivables: <br />Interest $ 49,773, <br />Taxes 243,329 <br />Loans and notes 498,871 <br />Subtotal 791,973 <br />Allowance for uncollectibles (14,852) <br />Net adjustment $ 777,121 <br />continued <br />23 <br />