Financial Statements - Statement of Activities include a government-wide financial statement to include net assets and activities and a fund financial statement and notes to the financial statements. Highlights concerning these Statements are noted below:

Government-wide Financial Statement:

•Report individual functions of operations as the net (expense) revenue to make taxpayers aware of the financial burden. It will identify how each function of the government draws from the general revenues or its self-financing through fees and other aid.


•As a minimum, governments should report direct expenses (those that are associated with a service, program or department). Governments are not required to allocate indirect expenses, such as general government, support services, or administration to other functions. If administrative overhead charges are reported as a direct expense, this should be disclosed in the summary.


Note:  All revenues are general revenues (and are reported after total net expense of the government's functions) unless they are required to be reported as program revenues.


•The statement should separately report three categories of program revenues: charges for services, program-specific operating grants and contributions, and program-specific capital grants and contributions.


Note:  Earnings on endowments or permanent fund investments should be reported as program revenues if restricted to a program identified in the agency's agreement.


•Report as charges for services: revenues as a result of transactions by customers who purchase, use, or directly benefit from the goods, services, or privileges provided. These can be fees for specific services, such as water use or garbage pickup; licenses and permits; operating special assessments, such as for special street lighting. Also reported are payments from other governments that are exchange transactions, for example when one county reimburses another for services.


•Report program-specific operating grants and contributions, such as FEMA disaster grants, that are used either for operating expenses or for capital expenditures of the program.


•Report program-specific capital grants and contributions, such as those used for capital purposes to purchase, construct, or renovate capital assets associated with a specific program should reported separately as general revenues.



Other notes to the financial statement:

Budget comparison schedules for the reporting period should present:
•the original budget - the first complete appropriated budget
•the final appropriated budget - the adjusted original budget
•actual inflows, outflows and balances stated on the government's budgetary basis

Fund Financial Statements:

Used to report governmental, proprietary and fiduciary funds to the extent that they have activities that meet the criteria for using those funds. This would be used to report additional and detailed information about the primary government. The financial statements required for governmental funds are: balance sheet and statement of revenues, expenditures and changes in fund balances.