Statement of Cash Flow

The Statement of Cash Flow explains the change in cash and cash equivalents from the prior year and provides readers with important information about how the municipality generated cash to meet its requirements.

The layout of the statement is designed to show how the entity financed its activities during the current and prior year.

The statement presents cash flow in four categories. How the cash is generated and used is shown separately in each of the following:

Operating Transactions

This section accounts for the adjustments to cash flow from non-cash items such as amortization and the impact from net changes to non-cash working capital items such as receivables, payables and deferred revenue.

Capital Transactions

Municipalities use tangible capital assets to support the delivery of services to residents. This section accounts for the impact on cash from tangible capital asset activities, such as additions and disposals.

Investing Transactions

This section accounts for the impact from net changes related to the purchase and sale of long-term investments.

Financing Transactions

This section accounts for the impact from net changes related to the issuance and payment of long-term debt obligations.