See accompanying notes to financial statements. Ozaukee County, Wisconsin Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended December 31, 2016 Net change in fund balances - total governmental funds $ 556,932 Amounts reported for governmental activities in the statement of activites are different because: Governmental funds report capital outlays as expenditures. However, in the statement of net position the cost of these assets is capitalized and they are depreciated over their estimated useful lives and reported as depreciation expense in the statement of activities. Capital outlay is reported as an expenditure in the fund financial statements but is capitalized in the government-wide financial statements 2,630,545 Some items reported as capital outlay expenditures in the fund financial statements are operating expenses in the government-wide statements (205,883) Depreciation is reported in the government-wide statements (1,781,016) Net book value of capital assets retired (1,774,165) Debt issued provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. Debt issued (1,130,000) Principal retired 2,763,744 Governmental funds report premiums and discounts associated with the issuance of long-term debt as other financing sources and uses but these items are amortized over the life of the debt issue on the statement of activities. Similarly, debt issuance costs and losses on refundings of debt are recorded as expenditures in the governmental funds but amortized over the life of the debt issue on the statement of activities. Premiums on new debt (47,092) Amortization of discounts (631) Amortization of premiums 48,569 Amortization of refunding losses (134,067) Receivables not currently available are reported as revenue when collected or currently available in the fund financial statements but are recognized as revenue when earned in the government-wide financial statements. Special assessments (292,370) Some expenses in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds. Compensated absences 40,033 Net pension liability (1,451,055) Deferred inflows/outflows of resources related to pensions 1,106,661 Landfill post-closure liability 16,258 Accrued interest on debt 108,235 Change in Net Position of Governmental Activities $ 454,698 VILLAGE OF GRAFTON 36