In response to Mickey Locklear's concern regarding the significant difference in property tax amounts between the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances and the government-wide Statement of Activities for Prospect city, it's important to note that such a variance can exist in line with generally accepted accounting principles (GAAP) for governments. This discrepancy primarily stems from variations in the accounting basis used in the two financial statements. The Governmental Funds Statement employs a modified accrual basis, recognizing revenue when it becomes both measurable and available. Property taxes, in this case, are recognized when taxpayers are legally obligated to pay, irrespective of actual payment timing. This can lead to timing disparities compared to when revenue is recorded in the government-wide statement. Conversely, the government-wide Statement of Activities utilizes the full accrual basis, recognizing revenues when they are earned and expenses when incurred. Consequently, property taxes are recognized as revenue upon assessment, not exclusively upon collection. Hence, the difference highlighted by Mickey may not necessarily indicate an error but rather results from divergent accounting methodologies in the two statements. Nevertheless, it remains crucial for Mayor Carol Hunt and Chief Accountant Sheila Prevatte to conduct further scrutiny to confirm that these distinctions indeed align with accounting principles and are not attributable to errors in the financial reporting process. Adequate documentation and disclosure of these variations in the financial statements are equally vital to ensure transparency for the city's stakeholders