CITY OF FAYETTEVILLE, GEORGIA

STATEMENT OF ACTIVITIES FOR THE FISCAL YEAR ENDED JULY 31, 2012

Unrestricted

Gain

The accompanying notes are an integral part of these financial statements.

CITY OF FAYETTEVILLE, GEORGIA

Balance Sheet Governmental Funds

JULY 31, 2012

Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds.

Other long-term assets are not available to pay for current-period expenditures and therefore, are deferred in the funds.102,699 Long-term liabilities are not due and payable in the current period and therefore, are not reported in the funds.(3,520,534)

The accompanying notes are an integral part of these financial statements.