Item 3C: Adoption of Resolution Acknowleding CAFR

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CITY OF EUGENE, OREGON Notes to Required Supplementary Information (3) Budget to GAAP Reconciliation Sections of Oregon Revised Statutes (Oregon Budget Law) require most transactions be budgeted on the modified accrual basis of accounting. However, there are certain transactions where statutory budget requirements conflict with generally accepted accounting principles (GAAP). The following discusses the differences between the budget basis and GAAP basis of accounting for the General Fund and the Community Development Fund. Community General Development Net change in fund balance - budget basis $ 2,020,339 (198,753) Budget resources not qualifying as revenues or other financing sources under GAAP: Indirect and other cost reimbursements received are reported as revenues or other financing sources on a budget basis. Such receipts are reclassified as a reduction of expenditures on a GAAP basis. (8,053,708) 0 Revenues and other financing sources required by GAAP not qualifying as budget resources: Adjustment for fair value of investments at year end is reported as miscellaneous revenue on a GAAP basis. Such revenues are not reflected on a Budget basis. 83,984 5,633 Budget expenditures not qualifying as expenditures or other financing uses under GAAP: Indirect and other costs reimbursed are reported as expenditures on a budget basis. Such disbursements are reclassified as a reduction of revenues and other financing sources on a GAAP basis. 8,053,708 0 Prepaid expenses are recorded in the year paid on a budget basis. However, such expenses are matched to the accounting period benefited under GAAP. (35,361) 0 Net change in fund balance - GAAP basis $ 2,068,962 (193,120) Principle payments received of $1,696,536 and loans granted of $2,041,417 are reported in the Community Development Fund as other financing sources and non-departmental expenditures, respectively. Such amounts have been reclassified as revenues and departmental expenditures on a GAAP basis. In addition, indirect cost reimbursements are reclassified from transfers to departmental administrative expenditures on a GAAP basis. Such reclassifications are not included in the above schedule.