Item 4: Resolution on Receipt of FY11 URA Annual Financial Report

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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON Notes to Basic Financial Statements (1) Summary of Significant Accounting Policies, continued (H) Fund Balances, continued Fund balance is reported as nonspendable when the resources cannot be spent because they are either in a nonspendable form or legally or contractually required to be maintained intact. Resources in nonspendable form include inventories, prepaids and deposits, and assets held for resale. Fund balance is reported as restricted when the constraints placed on the use of resources are either: (a) externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments; or (b) imposed by law through constitutional provisions or enabling legislation. (I) Indirect Expenses The Agency’s Statement of Revenues, Expenditures, and Changes in Fund Balances include reimbursement to the City’s Central Services department for general services provided to the Agency by the City’s General Fund. The charge for general service costs is based on an approved overhead rate applied to direct costs. The indirect cost reimbursement has been included in program expenses in the Statement of Activities. (2) Reconciliation of Government-wide and Fund Financial Statements (A) Explanation of Certain Differences Between the Government-wide Statement of Net Assets and the Governmental Fund Balance Sheet The Balance Sheet for governmental funds (Exhibit 3) includes a reconciliation between total fund balances and total net assets in the Statement of Net Assets (Exhibit 1). The following are selected elements of that reconciliation: The Statement of Net Assets reports receivables at their net realizable value. However, receivables not available to pay for current-period expenditures are deferred in governmental funds. The details of this $3,153,940 difference are as follows: Receivables: Interest$45,597 Taxes180,231 Loans and notes3,071,565 Subtotal3,297,393 Allowance for uncollectibles(143,453) Net adjustment$3,153,940 Capital assets are not financial resources in governmental funds, but are reported in the Statement of Net Assets at their net depreciable value. The details of this $4,736,470 difference are as follows: Capital assets (net of accumulated depreciation) reported in the Statement of Net Assets: Land and construction in progress$2,215,459 Other capital assets (net of accumulated depreciation)2,521,011 Net adjustment$4,736,470 continued 23