GASB STATEMENT NO. 69 AND THE IMPACT ON REPORTING ENTITY

Effective July 1, 2013, the City implemented GASB 69, Government Combinations and Disposals of Government Operations (GASB Statement No. 69). Beginning with fiscal year 2014, the SLPD is no longer a discretely presented component unit of the City. The impact of Ordinance #69489, constituted a government merger in which no significant consideration was exchanged. With the implementation of GASB Statement No. 69, the SLPD was absorbed into the Primary Government, and the Primary Government continued to provide police services to the City of St. Louis. The merger date for the purpose of GASB Statement No. 69 implementation was July 1, 2013, even though Ordinance #69489 didn’t pass until September 1, 2013. The primary reason for the change was due to cost saving measures.

The Primary Government recognized the assets and liabilities of SLPD as of July 1, 2013 at the carrying value, except as adjusted. Adjustments to previously reported amounts were made to align the methods of accounting principles between the Primary Government and the SLPD. Additionally, certain transactions between the Primary Government and SLPD have been eliminated. Specifically, all receivables and payables between the Primary Government and SLPD have been eliminated, but the effect of interfund services provided and used were not.

The following Tables I - VIII illustrate how the SLPD was merged into the Primary government. Tables I and II illustrate how activities of the SLPD were split between Primary government activities and funds.

Tables III - VIII illustrate Primary government adjusted balances for June 30, 2013.

Table I:

The governmental activities of the SLPD as of June 30, 2013 were allocated between the Primary government – governmental activities and the Primary government – Internal service funds as follows:

SLPD Portion of SLPD Portion of SLPD

State me nt of Ne t Position allocate d to allocate d to Gove rnme ntal activitie s Primary gove rnme nt Primary gove rnme nt

Asse ts Total* Gove rnme ntal activitie s Inte rnal se rvice funds

Cash and cash equivalents $ 893 $ 893 $ –

Due within one year 20,451 16,973 3,478

Due in more than one year 147,687 136,370 11,317

T otal liabilities 178,197 163,402 14,795

Ne t Position

Net investments in capital assets 33,350 33,350 –

Restricted:

Statutory restrictions 2,857 2,857 –

Unrestricted (deficit) (163,878) (149,083) (14,795)

T otal net position $ (127,671) $ (112,876) $ (14,795)

* per audited June 30, 2013 basic financial statements

Table II:

The SLPD Governmental funds – Other governmental funds – nonmajor fund as of June 30, 2013 was allocated between the Primary government – general fund – major fund and the Primary government – grants fund – major fund as follows:

SLPD Governmental funds

Non-major

fund - Portion of SLPD Portion of SLPD

Other allocated to allocated to

governmental Primary government Primary government

funds* General Fund Grants Fund

Receivables, net $ 1,090 $ 323 $ 767

Prepaid asset 7 — 7

Due from Treasurer - City of St. Louis 165 155 10

Due from other funds 1 — 1

Total assets 1,263 478 785

Liabilities and Fund Balances Liabilities:

Accounts payable and accrued liabilities 39 1 38

Accrued salaries and other benefits 241 139 102

Due to Treasurer - City of St. Louis 948 303 645

Total liabilities 1,228 443 785

Fund balances:

Nonspendable 7 7 —

Unassigned 28 28 —

Total fund balances 35 35 —

Total liabilities and

fund balances $ 1,263 $ 478 $ 785

* per audited June 30, 2013 basic financial statements

Note: Activities of the SLPD other governmental funds - non-major fund were split between general fund government-type activities and special revenue fund activities for the purpose of GASB No. 69 implementation.

Assets

Table III:

The Primary government – governmental activities adjusted balances as of June 30, 2013, consisted of the Primary government original June 30, 2013 balances, and a portion of the SLPD governmental activities as presented in Table I, and any adjustments as follows:

Primary government

Primary Governmental

government* SLPD* activities,

as adjusted

Assets Governmental activities Total Debit Credit Total

Cash and cash equivalents $ 75,567 $ 893 $ 76,460 $ — $ — $ 76,460

* per audited June 30, 2013 basic financial statements.

*** Per GASB No. 69 adjustments are made to align methods of accounting and to eliminate certain transactions between the Primary government and SLPD.

Statement of Net Position Adjustments***

Table IV:

The Primary government – general fund – major fund adjusted balances as of June 30, 2013, consisted of the Primary government original June 30, 2013 balances, all of the SLPD general fund – major fund, and a portion of the SLPD other governmental funds – nonmajor fund as presented in Table II, and any adjustments as follows:

fund* fund funds** Total Debit Credit Total

Cash and cash equivalents $ 39,455 $ 893 $ — $ 40,348 $ — $ — $ 40,348

* per audited June 30, 2013 basic financial statements.

** Activities of the SLPD other governmental funds - non-major fund were split between general fund government-type activities and special revenue fund activities for the purpose of GASB No. 69 implementation.

*** Per GASB No. 69 adjustments are made to align methods of accounting and to eliminate certain transactions between the Primary government and SLPD.

Adjustments***

Assets

Table V:

The Primary government – Capital projects fund major fund adjusted balance as of June 30, 2013, consisted of the Primary government original June 30, 2013 balances and any adjustments as follows:

Primary

* per audited June 30, 2013 basic financial statements.

*** Per GASB No. 69 adjustments are made to align methods of accounting and to eliminate certain transactions between the Primary government and SLPD.

Adjustments***

Assets

Table VI:

The Primary government – grant fund – major fund adjusted balance as of June 30, 2013, consisted of the Primary government – grant fund – major fund original balances, a portion of the SLPD other governmental funds – nonmajor fund as presented in Table II, all of the SLPD asset forfeiture fund – major fund and any adjustments as follows:

Primary

Primary SLPD SLPD government

government Non-major Major Major

Major fund - fund - fund –

fund - Other Asset Grant fund,

Grant governmental forfeiture as adjusted

fund* fund** fund* Total Debit Credit Total

Cash and cash equivalents $ 2,816 — 2,850 5,666 — — 5,666

* per audited June 30, 2013 basic financial statements.

** Activities of the SLPD other governmental funds - nonmajor fund were split between general fund government-type activities and special revenue fund activities for the purpose of GASB No. 69 implementation.

*** Per GASB No. 69 adjustments are made to align methods of accounting and to eliminate certain transactions between the Primary government and SLPD.

Adjustments***

Assets

Table VII:

The Primary government internal service fund - aggregate remaining fund adjusted balance as of June 30, 2013, consisted of the Primary government internal service fund - aggregate remaining fund original balances, a portion of the SLPD government-wide activities as presented in Table I, and any adjustments as follows:

Assets fund* Wide** Total Debit Credit Total

Current assets:

* per audited June 30, 2013 basic financial statements.

** Activities of the SLPD - government-wide statements were split between government-wide statements and internal service fund activities for the purpose of GASB No. 69 implementation.

*** Per GASB No. 69 adjustments are made to align methods of accounting and to eliminate certain transactions between the Primary government and SLPD.

Adjustments***

Table VIII:

The Primary government fiduciary fund – agency funds adjusted balance as of June 30, 2013, consisted of the Primary government fiduciary fund – agency funds original balance, all of the SLPD agency fund, and any adjustments as follows:

Primary government

Fiduciary fund

-Primary Agency

government SLPD funds,

Agency Agency as adjusted

funds* funds* Total Debit Credit Total

Assets

Cash and cash equivalents - unrestricted $ 23,906 1,591 25,497 — — 25,497

Cash and cash equivalents - restricted 1,729 — 1,729 — — 1,729

Investments - unrestricted — 2,350 2,350 — — 2,350

Receivables, net of allowances: —

Taxes 21,498 — 21,498 — — 21,498

Other 1,295 — 1,295 — — 1,295

Total assets 48,428 3,941 52,369 — — 52,369

Liabilities

Accounts payable and accrued liabilities 1,565 — 1,565 — — 1,565

Deposits held for others 17,569 190 17,759 — — 17,759

Due to other governmental agencies 29,294 3,751 33,045 — — 33,045

Total liabilities 48,428 3,941 52,369 — — 52,369

* per audited June 30, 2013 basic financial statements.

*** Per GASB No. 69 adjustments are made to align methods of accounting and to eliminate certain transactions between the Primary government and SLPD.

Adjustments***

3. DEPOSITS AND INVESTMENTS