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TOWN OF BOSTON, NEW YORK Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances—Governmental Funds to the Government-wide Statement of Activities Year Ended December 31, 2024 Amounts reported for governmental activities in the statement of activities (page 11) are different because: Net change in fund balances—total governmental funds (page 14) $ (135,971) Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of these assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlay exceeded depreciation expense and loss on disposals in the current period. Capital asset additions $ 869,269 Depreciation expense (274,081) Loss on disposals (1,039) 594,149 Net differences between pension contributions recognized on the fund financial statements and the government-wide financial statements are as follows: Town pension contributions and benefit payments $ 940,129 Cost of benefits earned net of employee contributions (1,009,229) (69,100) Governmental funds recognize revenues only if they are both measurable and available after the end of the fiscal year; however, the government-wide statements recognize revenue on an accrual basis. This is the effect of the change in deferred revenue during the current year. 1,500 In the statement of activities, interest expense is recognized as it accrues, regardless of when it is paid. (32,295) The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activites. Additionally, in the statement of activities, certain operating expenses are measured by the amounts earned during the year. In the governmental funds, however, expenditures for these items are measured by the amount of financial resources used (essentially, the amounts actually paid). The net effect of these differences in the treatment of long-term debt and the related items is as follows: Principal payments on serial bonds $ 171,751 Principal payment on installment purchase debt 13,926 Repayment of leases 4,368 Change in compensated absences 9,537 199,582 Change in net position of governmental activities $ 557,865 The notes to the financial statements are an integral part of this statement. - 15 -