Chapter 13 – Financial Statement Analysis

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Conversion worksheet

Green shaded cells are from Chapter 5 financial Statements	Enter all amounts as positive numbers. The worksheet is formatted to add debits to assets & expenses and add credits to revenues, liabilities & equity
Refr.	Account Titles	Debits	Credits	Gov'tal Fund Balances	Adjustments & Eliminations	Govern-mental Funds Adjusted	Internal Service Funds	Balances for Gov't-wide Stmts
Debits	Credits	Debits	Credits
A	Capital asset	64,200,000	DEBITS:
Accumulated Depreciation	28,700,000	Cash	657,720	657,720	35,000	692,720
Net Position	35,500,000	Cash with Fiscal Agent	928,000	928,000	928,000
Investments	259,000	259,000	259,000
B	Capital asset	5,823,100	Taxes Receivable, net	262,000	262,000	262,000
Capital Outlay Expenditures	5,823,100	Interest Receivable, net	16,850	16,850	16,850
Inventories	-	37,540	37,540
C	Depreciation Expense	4,900,000	Due from State Govt.	559,000	559,000	559,000
Accumulated Depreciation	4,900,000	Due from Other Funds	-	11,200	(3,200)	14,400
Capital Assets	64,200,000	70,023,100	78,400	70,101,500
D	Proceeds of bonds	4,000,000	both rows	5,823,100
Other Financing sources- premium on bonds	200,000	-	-
Bonds payable	4,000,000	Expenditures (expenses) Current	-
Premium on bonds	200,000	General Govt.	1,646,900	1,646,900	(1,240)	1,648,140
Public Safety	3,026,900	3,026,900	3,026,900
E	Net position	12,000,000	Highway and Streets	2,481,900	2,481,900	2,481,900
Bonds payable	12,000,000	Sanitation	591,400	591,400	591,400
Health	724,100	724,100	724,100
F	Bonds payable	800,000	Welfare	374,300	374,300	374,300
Bonds Principal	800,000	Culture and Recreation	917,300	917,300	917,300
Compensated Absences Exp	42,000	42,000	42,000
G	Interest Expense	328,000	Other Expenditures (expenses)	-	-
Accrued Interest Payable	328,000	- Debt Service Principal	800,000	(800,000)	1,600,000	1,600,000
- Interest (expenditure/expense)	514,000	328,000	(180,000)	1,032,000	1,032,000
H	Net position	180,000	both rows	(10,000)
Interest Expense	180,000	- Capital Outlay	5,823,100	(5,823,100)	11,646,200	11,646,200
- Depreciation	4,900,000	4,900,000	4,900,000
I	Bonds Payable	10,000	Other Fin. Uses - Transfers Out	1,871,700	1,871,700	(1,871,700)	3,743,400
Interest Expense	10,000	-
Total Debits	21,454,170	105,598,650
J	Deferred Revenues	10,500	CREDITS:
Revenues- Property Taxes	10,500	Accounts Payable	326,800	326,800	(19,400)	307,400
Due to Other Funds	40,200	40,200	3,200	37,000
K	Revenues- Property Taxes	21,000	Accrued Interest Payable	(328,000)	(328,000)	(328,000)
Net Position	21,000	Bonds Payalbe	(12,000,000)
both rows	800,000	(4,000,000)	(16,800,000)	(16,800,000)
L	Compensated Absenese Expense	42,000	Premium on Bonds	10,000	(200,000)	(210,000)	(210,000)
Compensated Absences Payable	42,000	Compensated Absence Payable	(42,000)	(42,000)	(42,000)
Advance from Water Utility Fund	-	(15,000)	(15,000)
M	Cash	35,000	Deferred Inflows: Property Taxes	10,500	10,500	-	(15,000)
Due from Other Funds	11,200	Accumulated Depreciation	(28,700,000)
Inventories	37,540	both rows	(4,900,000)	(33,600,000)	(33,600,000)
Capital assets	78,400	Revenues	-
Accounts Payable	19,400	Property Taxes	6,657,500	21,000	(10,500)	6,626,000	6,626,000
Advance from Water Utility Fund	15,000	Sales Taxes	2,942,000	2,942,000	2,942,000
Net Assets	127,740	Interest	21,220	21,220	21,220
Licenses & Permits	800,000	800,000	800,000
N	Due to Other Funds	3,200	Miscellaneous	350,000	350,000	350,000
Due from OtherFunds	3,200	State Grant for Highway Street Expenses	1,065,000	1,065,000	1,065,000
Capital Grant- Gen Gov't	332,000	332,000	332,000
O	Net Assets	1,240	Capital Grant- Public Safety	1,340,000	1,340,000	1,340,000
Expenditures- Current- General Government	1,240	-	-
-	-
P	Transfer In	1,871,700	Other Financing Sources	-	-
Transfer Out	1,871,700	Proceeds of Bonds	4,000,000	4,000,000	-	-
Premium on Bonds	200,000	200,000	-	-
Transfers In	1,871,700	1,871,700	1,871,700	-
Net Position at beginning of year	-	1,240
three rows	180,000	(21,000)
1,497,250	12,000,000	(35,500,000)	(46,203,750)	(127,740)	(46,332,730)
Total Credits	21,454,170	(37,189,380)
column totals: debits = credits ??	-	92,514,600	(92,514,600)	2,038,280	(2,038,280)	142,788,030

CITY OF MONROE WORKSHEET TO CONVERT GOVERNMENTAL ACTIVITIES TO ACCRUAL BASIS

Stmt of Activities

Program Revenues	Net (Expense) Revenue and Change in Net Position
Expenses	Charges for Services	Operational Grants and Contributions	Capital Grants and Contributions	Governmental Activities	Business-Type Activities	Total
Functions/Programs
Governmental Activities:
General Government	$ 1,645,660	$ 332,000	$ (1,313,660)	$ (1,313,660)
Public Safety	3,026,900	1,340,000	(1,686,900)	(1,686,900)
Highways and Streets	2,481,900	1,065,000	(1,416,900)	(1,416,900)
Sanitation	591,400	(591,400)	(591,400)
Health	724,100	(724,100)	(724,100)
Welfare	374,300	(374,300)	(374,300)
Culture and Recreation	917,300	(917,300)	(917,300)
Depreciaiton	4,900,000	(4,900,000)	(4,900,000)
Interest	652,000	(652,000)	(652,000)
Compensated Absneces	42,000	(42,000)	(42,000)
Total Governmental Activities	15,355,560	-	1,397,000	1,340,000	(12,618,560)	(12,618,560)
Business Type Activities
Water and Sewer	1,055,000	1,049,500	18,000	18,000
Total Government	$ 16,410,560	$ 1,049,500	$ 1,397,000	$ 1,340,000	$ (12,618,560)	$ 18,000	(12,600,560)
General Revenues
Taxes:
Property Taxes	6,647,000	6,647,000
Sales Taxes	2,942,000	2,942,000
Interest	21,220	21,220
licenses and Permits	800,000	800,000
Miscellaneous	350,000	350,000
Total General Revenues	10,760,220	-	10,760,220
Change in Net Position	(1,858,340)	18,000	(1,840,340)
Net Position, Beginning	24,837,010	25,796,010
Net Position, Ending	$ 22,978,670	$ 18,000	$ 23,955,670

&14CITY OF MONROE Statement of Activities &11For the year ended December 31, 2017

Stmt of Net Position

Governmental Activities	Business-Type Activities	Total
Assets
Cash	$ 692,720	$ 102,400	$ 795,120
Cash with Fiscal Agents	928,000	928,000
Investments	259,000	259,000
Accounts Receivable (Net)	16,500	16,500
Taxes Receivable (Net)	262,000	262,000
Interest Receivable	16,850	16,850
Internal Balances Current	-	Net the amounts: due from and (due to) other funds
Due from Other Governments	567,000	567,000
Inventories	37,540	94,500	132,040
Internal Balances Long-Term	(15,000)	15,000	-
Restricted Assets	142,000	142,000
Capital Assets, Net of Accumulated Depreciation	36,501,500	3,037,300	39,538,800
Total Assets	$ 39,249,610	$ 3,407,700	$ 42,657,310
Liabilities
Accounts Payable	346,200	56,000	402,200
Payroll Taxes Payable	3,300	3,300
Accrued Interest Payable	328,000	328,000
Revenue Bonds Payable	2,500,000	2,500,000
General Obligation Bonds Payable	15,200,000	15,200,000
Premium on Bonds Sold	190,000	190,000
Compensated Absences Payable	42,000	42,000
Total Liabilities	16,106,200	2,559,300	18,665,500
Net Position
Net Investment in Capital Assets	51,876,500	537,300	52,413,800
Restricted	204,500	142,000	346,500
Unrestricted	298,100	298,100
Total Net Position	$ 52,081,000	$ 977,400	$ 53,058,400

&14CITY OF MONROE Statement of Net Position &11As of December 31, 2017

Reconciliations

CITY OF MONROE
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
As of December 31, 2017
Fund balances reported in governmental funds Balance Sheet	$ 1,497,250
Amounts reported for governmental activities in the
Statement of Net Position are different because:
Capital assets used in governmental activities are not financial resources and therefore not reported in the funds. Amount does not include capital assets of internal service funds (reported in following row).	36,423,100
The assets and liabilities of internal service funds are included in governmental funds in the Statement of Net Position.	127,740
Deferred revenue for property taxes reported in the funds but accrued as revenue in the government-wide statements and added to Net Position.	10,500
Accrued interest payable is reported as a liability in the Statement of Activities; interest is not accrued in the governmental funds.	(328,000)
Bonds payable, not due and payable in the current period are not reported in the funds.	(15,410,000)
Compensated absences, not due and payable in the current period are not reported in the funds.	(42,000)
Net Position of Governmental Activities	$ 22,278,590
CITY OF MONROE
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balance to the Statement of Activities
For the year ended December 31, 2017
Net change in fund balances - Governmental funds	$ 844,420
Amounts reported for governmental activities in the
Statement of Activities are different because:
Governmental funds report capital outlays as expenditures rather than assets	5,823,100
Governmental funds do not report depreciation expense	(4,900,000)
The net revenue of internal service funds is not reported with the governmental funds	(1,240)
Property taxes due more than 60 days after year end is not accrued in the governmental funds.	(10,500)
Bond proceeds are reported as other financing sources in the governmental funds but as liabilities in the government-wide statements.	(4,200,000)
Repayment of bonds is reported as an expenditure in the governmental funds	800,000
Interest is not accrued at year end in the governmental funds.	(138,000)
Increases in compensated absences, not due and payable in the current period are not reported in the funds.	42,000
Change in Net Position of Governmental Activities	$ (1,740,220)

City of Monroe Reconciliation of fund basis to government-wide statements