VLAWMO Annual Financial Report 2009

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Management's Discussion and Analysis - Continued March 24, 2010 Financial Analysis of the Government's Funds As noted earlier, the Organization uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the Organization's governmental funds is to provide information on near -term inflows, outflows and balances of spendable resources. Such information is useful in assessing the Organization's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Organization's governmental funds reported combined ending fund balances of $254,419 an increase of $44,152 in comparison with the prior year. All of this balance constitutes unreserved fund balance, which is available for spending at the Organization's discretion. However, the entire balance has been designated by the Board for specific purposes. The general fund is the chief operating fund of the Organization. At the end of the current year, the fund balance of the general fund was $254,419. As a measure of the general fund's liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund balance represents 64 percent of 2009 fund expenditures and 59 percent of 2010 budgeted fund expenditures. The fund balance of the Organization's general fund increased $44,152 during the current fiscal year. The key factor in this change was grant proceeds from the St. Paul Regional Water Service and the Minnesota Pollution Control Agency. General Fund Budgetary Highlights The Organization's general fund budget was amended during the year. The amendment did not change total appropriations, but rather amended certain line items due to the addition of the Water Resources Technician during the year. The actual results were much more favorable than those projected by the 2009 budget. Revenues were in excess of budget by $53,320, due to grant revenues from the St. Paul Regional Water Service and the Minnesota Pollution Control Agency. Expenditures exceeded appropriations by $8,568. The largest variance was provided by Projects, which were over budget by $15,937. This excess was primarily due to the Whitaker pond project. Capital Asset and Debt Administration Capital Assets. The Organization's investment in capital assets for its governmental activities as of December 31, 2009, amounts to $163,402 (net of accumulated depreciation). This investment in capital assets includes infrastructure related to the Lambert Creek Flume project. Major capital asset events during the current fiscal year included the following: • In 2009, VLAWMO replaced a flume at County Road F. Additional information on the Organization's capital assets can be found in Note 3D on page 38 of this report. -18-