Dare County, North Carolina's Water Fund is an enterprise fund. The County presents a budgetary comparison schedule for the Water Fund, using the modified accrual basis to report actual expenditures in excess of revenues and other financing sources of $(775,089). The following information is available for fiscal 2010:
1. Water Fund asset depreciation: $2,123,592.
2. Compensated absences payable decreased by $12,882.
3. Inventory increased by $63,587.
4. Water Fund asset amortization: $147,916.
5. Debt principal payment: $1,285,000.
6. Capital outlay: $2,222,558.
7. Accrued interest payable decreased by $10,487.
8. OPEB payable increased by $454,385.
Required
Prepare a schedule reconciling the $(775,089) expenditures in excess of revenues and other financing sources, prepared on a modified accrual basis, to the change in net position, as reported on the Water Fund's operating statement.