Item 5: URA - Resolution Acknowledging Receipt of FY07 Financial Report

Home Browse Search

URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (2) Reconciliation of Government-wide and Fund Financial Statements, continued (B) Explanation of Certain Differences Between the Government-wide Statement of Activities and the Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund Balances The Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities is provided at Exhibit 5. The following are selected elements of that reconciliation: Donations of capital assets are reported as capital contributions in the Statement of Activities, but do not appear in the governmental funds because they are not financial resources. The $137,966 difference represents current year capital assets donations. Capital outlays are reported as expenditures in governmental funds. However, the Statement of Activities allocates the cost of capital outlays over their estimated useful lives as depreciation expense. The details of this $87,604 difference are as follows: Capital outlay$139,854 Depreciation expense(227,458) Net adjustment $(87,604) Governmental funds defer revenues that do not provide current financial resources. However, the Statement of Activities recognizes such revenue at their net realizable value when earned, regardless of when collected. The details of this $164,757 difference are as follows: Change in deferred revenue from the following sources: Property taxes receivable$(13,869) Notes receivable179,087 Subtotal165,218 Change in the allowance for doubtful receivables(461) Net adjustment$164,757 (3) Stewardship, Compliance, and Accountability (A) Budgetary Information The City of Eugene submits to the City Council of Eugene (acting as the Urban Renewal Agency Board under provisions of Oregon Revised Statute 457.460) a proposed operating and capital budget a sufficient length of time in advance to allow adoption of the budget prior to July 1. The Agency legally adopts its budget annually for all funds prior to July 1 through passage of a resolution. The resolution authorizes fund appropriations as current annual departmental requirements, debt service, capital outlay, interfund transfers, interfund loans, intergovernmental, and miscellaneous fiscal transactions. Expenditures cannot legally exceed appropriations at these control levels. Appropriations which have not been spent at year-end lapse, although an amending resolution passed in the subsequent year specifically provides for the reappropriation of prior-year lapsed encumbrances. continued îì