TOWN OF CARY, NORTH CAROLINA
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE
STATEMENT OF NET ASSETS
June 30, 2006
EXHIBIT D
Amounts reported for governmental activities in the statement of net assets are different because:
								Governmental Funds	Internal Service Funds	Total
ENDING FUND BALANCE - GOVERNMENTAL FUNDS								$128,119,283	---	128,119,283
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
								545,779,711	1,301,072	547,080,783
Long-term receivables, net of related deferred revenues, are not available to pay for current-period expenditures and are not included in the funds.  This also includes a current internal service fund receivable.
								23,242,460	167,799	23,410,259
Other internal service fund current assets included as governmental activities (cash, receivables, inventory).
								---	5,917,342	5,917,342
Long-term and non-current assets and liabilities related to debt (deferred expenses, premiums and interest payable) are not available or due in the current period and therefore are not reported in the funds.  This is a net amount.
								(805,677)	---	(805,677)
Non-current assets includes prepaid pension benefits and an inter-fund receivable related to internal service fund activities.  These are not available in the current period and therefore not reported in the funds.
								277,945	---	277,945
Certain non-current liabilities are not due in the current period and therefore not reported in the funds.  This also includes internal service fund accounts payable which is considered current and a deposit.
								(19,197)	(94,005)	(113,202)
Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds.
								(122,542,948)	(869,593)	(123,412,541)
NET ASSETS OF GOVERNMENTAL ACTIVITIES								$574,051,577	6,422,615	580,474,192
The accompanying notes are an integral part of these basic financial statements.