VILLAGE OF BUFFALO GROVE, ILLINOIS

Reconciliation of Total Governmental Fund Balance to Net Position - Governmental Activities

December 31, 2022

Amounts reported for governmental activities in the Statement of Net Position are different because: assets used in governmental activities are not financial resources and therefore, are not reported in the funds. outflows (inflows) of resources related to the pensions not reported in the funds.

A net pension asset is not considered to represent a financial resource and therefore is not reported in the funds.

Internal service funds are used by the Village to charge the costs of vehicle and equipment management and employee compensated absences to individual funds. The assets and liabilities of the internal service funds are included in the

Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds.

The notes to the financial statements are an integral part of this statement.

VILLAGE OF BUFFALO GROVE, ILLINOIS

Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds

For the Fiscal Year Ended December 31, 2022

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VILLAGE OF BUFFALO GROVE, ILLINOIS

Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds

For the Fiscal Year Ended December 31, 2022

VILLAGE OF BUFFALO GROVE, ILLINOIS

Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities - Governmental Activities

For the Fiscal Year Ended December 31, 2022

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

The net effect of deferred outflows (inflows) of resources related to the pensions not reported in the funds.

The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal on long-term debt consumes the current financial resources of the governmental funds.

The notes to the financial statements are an integral part of this statement.