New Search
,i <br />URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON <br />Notes to Basic Financial Statements , <br />(2) Reconciliation of Government-wide and Fund Financial Statements, continued <br />(B) Explanation of Certain Differences Between the Government-wide Statement of Activities and the <br />Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances ) <br />The Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of <br />Governmental Funds to the Statement of Activities is provided at Exhibit 5. The following are selected <br />elements of that reconciliation: <br />Capital outlays are reported as expenditures in governmental funds. However, the Statement of Activities <br />allocates the cost of capital outlays over their estimated useful lives as depreciation expense. The details <br />of this $1,096,594 difference are as follows: <br />Capital outlay <br />Depreciation expense <br />$ 1,338,884 <br />(242,290) <br />Net adjustment <br />$ 1,096,594 <br />Governmental funds defer revenues that do not provide current financial resources. However, the <br />Statement of Activities recognizes such revenue at their net realizable value when earned, regardless of <br />when collected. The details of this $247,118 difference are as follows: <br />Change in deferred revenue from the following sources: <br />Property taxes receivable $ 24,262 <br />Notes receivable 228,141 <br />Subtotal 252,403 <br />Change in the allowance for doubtful receivables (5,285) <br />Net adjustment $ 247,118 <br />(3) Stewardship, Compliance, and Accountability <br />(A) Budgetary Information <br />The City of Eugene submits to the City Council of Eugene (acting as the Urban Renewal Agency Board <br />under provisions of Oregon Revised Statute 457.460) a proposed operating and capital budget a <br />sufficient length of time in advance to allow adoption of the budget prior to July 1. <br />Prior to July 1, the Agency legally adopts its annual budget for all funds through passage of a resolution. <br />The resolution authorizes fund appropriations as current annual departmental requirements, debt service, <br />capital outlay, interfund transfers, interfund loans, intergovernmental, and miscellaneous fiscal <br />transactions. Expenditures cannot legally exceed appropriations at these control levels. Appropriations <br />which have not been spent at year-end lapse, although an amending resolution passed in the subsequent <br />year specifically provides for the reappropriation of prior-year lapsed encumbrances. <br />continued <br />24 <br />