CITY OF LAGUNA NIGUEL RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2024 RECONCILIATION TO THE STATEMENT OF ACTIVITIES Net Change in Fund Balances - Total Governmental Funds $ 4,443,117 Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlay as expenditures. However, in the statement of activities, the costs of those assets are allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlay exceeded depreciation in the current period (excluding amount reported in the internal service fund): Capital Assets 10,305,571 Depreciation Expense (8,383,981) Compensated absences expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. 148,121 Proceeds from long-term debt provided current financial resources to governmental funds, but issuing debt increased long-term liabilities in the statement of net position. Issuance of Subscription Payable (167,088) Pension expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (1,462,207) OPEB expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (83,171) Revenues reported as unavailable revenue in the governmental funds are recognized in the statement of activities. These are included in the revenues of governmental activities. 310,133 Internal service funds are used by management to charge the costs of certain activities, such as vehicle replacement, to individual funds. The net revenues (expenses) of the internal service funds are reported with governmental activities. (198,201) Changes in Net Position of Governmental Activities as Reported on the Statement of Activities $ 4,912,294 See accompanying Notes to Basic Financial Statements. (29)