A governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balances reported of $30 million, including capital outlay expenditures of $9 million. Capital assets for that government cost $90 million, including land of $10 million. Depreciable assets are amortized over 20 years, on average. The reconciliation from governmental changes in fund balances to governmental activities changes in would reflect aan:

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$9,000,000 of capital outlay expenditures would be an addition and $4,000,000 of depreciation expense would be a subtraction which result in a $5,000,000 increase. Depreciation expense: $90,000,000 - $10,000,000)/20 years = $4,000,000

A Governmental Fund Statement of Revenues, Expenditures, and Changes in Fund