CITY OF ELIZABETH Reconciliation of the Balance Sheet-Governmental Funds to the Statement of Net Position June 30, 20XX Total fund balances-governmental funds Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported by funds. Deferred inflows of resources are recognized as revenues of governmental activities Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds. Accrued interest payable is not due in the current period and therefore is not included in the funds. Net position of governmental activities