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Reporting Model-Statement of Activities
•Net cost format (expenses minus program revenue = net cost)
•Expenses by functions/programs
•Revenues by:
–Charges for services
–Operating grants and contributions
–Capital grants and contributions
–General (e.g., taxes and other non-program revenue)
•Special, extraordinary items, and transfers
ØMost significant impact on closing package agencies will likely be the addition of separate accounts to identify capital from operating grants/program from general grants (discussed in next section)
The purpose of the statement is to show how functional expenditures are first supported by revenues directly charged for those functions and operating grants and contributions, then by the general revenues of the government.

The net of program revenues and expenses are shown as either governmental activities or business types actives.

Extraordinary items - unusual and infrequent

Special items - unusual or infrequent and controllable by management.