Review the Notes to the Financial Statements for Long-term Debt. (5 points)

a. What is the Note number for Long-term Debt?

b. What is the lowest interest rate? What is the highest interest rate?

c. From the Consolidated School District. What is the most recent long-term debt issue(s) and the date(s)? When do they mature?

Resources: TOWN of Berlin, CT Comprehensive Annual Financial Report

The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The details of these differences in the treatment of long-term debt and related items are as follows: Debt issued or incurred: Issuance of bonds Premium Principal repayments: General obligation bonds and notes payable Total Exhibit E Town of Berlin, Connecticut ( 2 of 2 ) Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities For the Year Ended June 30, 2020 Some 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: The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. The details of these differences in the treatment of long-term debt and related items are as follows: Debt issued or incurred: Issuance of bonds Premium Principal repayments: General obligation bonds and notes payable Total Exhibit E Town of Berlin, Connecticut ( 2 of 2 ) Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to Statement of Activities For the Year Ended June 30, 2020 Some 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