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CITY OF EUGENE, OREGON <br />Notes to Required Supplementary Information <br />(3)Budget to GAAP Reconciliation <br />Sections of Oregon Revised Statutes (Oregon Budget Law) require most 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 Special Revenue Fund. <br />Community <br />GeneralDevelopment <br />Net change in fund balance - budget basis$(2,029,201)(325,229) <br />Budget resources not qualifying as revenues or other financing <br />sources under GAAP: <br />Indirect and other cost reimbursements received are reported as revenues <br />or other financing sources on a budget basis. Such receipts are <br />reclassified as a reduction of expenditures on a GAAP basis.(5,835,109)0 <br />Revenues and other financing sources required by GAAP not <br />qualifying as budget resources: <br />Adjustment for fair value of investments at year end is reported as <br />miscellaneous revenue on a GAAP basis. Such revenues are not <br />reflected on a Budget basis.(22,519)(472) <br />Budget expenditures not qualifying as expenditures or other <br />financing uses under GAAP: <br />Indirect and other costs reimbursed are reported as expenditures on a <br />budget basis. Such disbursements are reclassified as a reduction of <br />revenues and other financing sources on a GAAP basis.5,835,1090 <br />Prepaid expenses are recorded in the year paid on a budget basis. <br />However, such expenses are matched to the accounting period benefited <br />under GAAP.(135,892)0 <br />Loans made to other funds are reported as an other financing use on a <br />budget basis. Such loans are reclassified as either interfund loans <br />receivable (current portion) or advances to other funds (long-term portion) <br />on a GAAP basis.62,5000 <br />Net change in fund balance - GAAP basis.$(2,125,112)(325,701) <br />Principle payments received of $1,038,236 and loans granted of $2,024,655 are reported in the <br />Community Development Fund as other financing sources and non-departmental expenditures, <br />respectively. Such amounts have been reclassified as revenues and departmental expenditures on a <br />GAAP basis. In addition, indirect cost reimbursements are reclassified from transfers to departmental <br />administrative expenditures on a GAAP basis. Such reclassifications are not included in the above <br />schedule. <br />éè <br />