FAR | Reconciliation of Governmental Financials

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  • August 20, 2014 at 9:22 pm #187937
    Anonymous
    Inactive

    Hello All, can someone please tell me why payment of principal on debt service added in reconciliation of Statement of Revenues, Expenditures and Changes in Fund balances with Statement of Activities? I did not get the rationale behind it.

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  • August 20, 2014 at 9:26 pm #587945
    Guti
    Participant

    Because debt service is recorded as an Expenditure when paid, and on Gov wide it should be a reduction of a liability, and not an expense.

    FAR-84
    AUD-
    REG-
    BEC-

    August 20, 2014 at 9:30 pm #587946
    Anonymous
    Inactive

    Thanks Gian. The addition makes sense to me now..

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