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CITY OF SAN LEANDRO <br />NOTES TO BASIC FINANCIAL STATEMENTS <br />For The Year Ended June 30, 2016 <br /> <br /> <br />NOTE 7 – COMPENSATED ABSENCES <br /> <br />The City’s compensated absences consist of accrued vacation pay, sick leave, and accrued compensatory <br />time. The total amount of the accrued liability is recorded in the Government-wide Financial Statements <br />and charges for compensated absences expense is charged to the various program activities in the <br />Governmental funds, primarily General fund and Internal Service funds, and all Proprietary funds. <br /> <br />Summary of changes in compensated absences for the year ended June 30, 2016, follows: <br /> <br />Balance Balance Due within Due in more <br />July 1, 2015 Additions Retirements June 30, 2016 one year than one year <br />Governmental Activities 3,214,714$ 951,737$ (633,513)$ 3,532,938$ 640,343$ 2,892,595$ <br />Business-type Activities 577,628 74,369 (12,150) 639,847 57,586 582,261 <br />Total 3,792,342$ 1,026,106$ (645,663)$ 4,172,785$ 697,929$ 3,474,856$ <br /> <br />NOTE 8 – UNEARNED REVENUE <br /> <br />A. Governmental-Wide Financial Statements <br /> <br />Unearned revenue in the Government-Wide Financial Statements represents amounts for which revenues <br />have not been earned. At June 30, 2016, unearned revenue in the Government-Wide Financial Statements <br />was $2,265,912. <br /> <br />NOTE 9 – NET POSITION AND FUND BALANCES <br /> <br />A. Net Position <br /> <br />Net Position is the excess of all the City’s assets and deferred outflows of resources over all its liabilities, <br />and deferred inflows of resources regardless of fund. Net Position is divided into three captions. These <br />captions apply only to Net Position, which is determined only at the Government-wide level, and are <br />described below: <br /> <br />Net investment in capital assets describes the portion of Net Position which is represented by the current <br />net book value of the City’s capital assets, less the outstanding balance of any debt issued to finance these <br />assets. <br /> <br /> Restricted net position describes the portion of Net Position which is restricted as to use by the terms and <br />conditions of agreements with outside parties, governmental regulations, laws, or other restrictions which <br />the City cannot unilaterally alter. These principally include capital projects, debt service requirements, <br />and special revenue programs restricted to special revenue purposes such as Measure B, special Gas Tax, <br />Grant funds, and other special revenue funds. <br /> <br /> Unrestricted describes the portion of Net Position which is not restricted to use. <br /> <br /> <br />67