The reconciliations required to be presented on the face of the governmental fund financial statements or in separate schedule immediately after the fund financial statements include:

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Both reconciliations are required in order to properly present the financial position and activity of the government as a whole. The reconciliation from the Balance Sheet to the Statement of Net Assets is necessary to incorporate any capital assets or long-term debt that are not reported in the governmental funds, while the reconciliation from the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities is necessary to report on the full economic resources and expenses of the government.

The Reconciliations Required to Be Presented on the Face of the Governmental