such a discrepancy can exist under the generally accepted accounting principles applicable to governments. The difference stems from the different measurement basis (modified accrual and full accrual) that is used. The Fund Financial Statements are reported typically using the modified accrual method of accounting. That being said, property taxes are recognized when they are measurable and available. This type of measurement basis focuses more on short-term obligations and cash flow. On the contrary, the government wide financial statements are prepared using the full accrual basis of accounting. The purpose of this measurement focus is to looks at the government entitys long term financial health. Rather than expenses being recognized when measurable, they are recognized when actually incurred. In summary, the discrepancy recognized by Mickey is truly not an error but rather a timing difference. This can actually be a common occurrence with several other profit & loss line items