Hart County, Georgia
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of the Governmental Funds to the Statement of Activities
For the Year Ended September 30, 2004

Net Change in Fund Balances - Total Governmental Fund:    $ (208,486)

Amounts reported for governmental activities on the Statement of Activities are different from the amounts reported in the Statement of Revenues, Expenditures, and Changes in Fund Balance because: The Governmental Funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period.

Expenditures for Capital Assets

$ 1,302,390

Less Current Year Depreciation

(330,564)

Excess of capital outlay over depreciation expense 971,826
The repayment of the principal of long-term debt consumes current financial resources of the governmental funds; however, it does not have any effect on net assets. This is the amount of debt reduction during the year.
Loan Repayments    112,007
Compensated Absences are reported in the Statement of Activities but do not require the use of current financial resources and therefore are not reported as expenditures in the Governmental funds.
Increase in compensated absences for FY 2004  (27,996)
Because some revenues will not be collected for several months after the County's fiscal year ends, they are not considered "available" revenues and are deferred in the governmental funds

Deferred Revenue at 9/30/03

(275,937)

Deferred Revenue at 9/30/04

287,271

Total increase in Deferred Revenue

11,334
 
In the statement of activities, only the gain/loss on the sale of various equipment is reported, whereas in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change in net assets differs from the change in fund balance by the net book value of the equipment sold. 11,334
Change in Net Assets of Governmental Activities    $   805,629

Accompanying notes to financial statements are an integral part of this statement