VLAWMO Annual Financial Report 2009

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Vadnais Lake Area Water Management Organization March 24, 2010 Page 9 Current and Future Accounting Standard Changes The following Governmental Accounting Standards Board (GASB) Statements have been issued and may have an impact on future Organisation's financial statements: GASB Statement No. 54 - Fund Balance This statement was issued in March of 2009 and is effective for periods beginning after June 15, 2010. This new standard is intended to improve the usefulness of information provided to financial report users about fund balance by providing clearer, more structured fimd balance classifications, and clarifying the definitions of existing governmental fund types. GASB No. 54 distinguishes fund balance between amounts that are considered non -spendable, such as fund balance associated with inventories, and other amounts that are classified based on the relative strength of the constraints that control the purposes for which specific amounts can be spent. The following classifications and definitions will be used: • Restricted - amounts constrained by external parties, constitutional provision, or enabling legislation • Committed - amounts constrained by a government using its highest level of decision -making authority • Assigned - amounts a government intends to use for a particular purpose • Unassigned - amounts that are not constrained at all will be reported in the general fund. In addition to the classifications of fund balance, the standard clarified the definitions of individual governmental fund types, for example, special revenue funds, debt service funds, and capital project funds. This report is intended solely for the information and use of Board of Directors, management and the Minnesota Office of the State Auditor, and is not intended to be and should not be used by anyone other than these specified parties. Our audit would not necessarily disclose all weaknesses in the system because it was based on selected tests of the accounting records and related data. The comments and recommendations in the report are purely constructive in nature, and should be read in this context. If you have any questions or wish to discuss any of the items contained in this letter, please feel free to contact us at your convenience. We wish to thank you for the opportunity to be of service and for the courtesy and cooperation extended to us by your staff. auk) itmoroi La) March 24, 2010 ABDO, EICK & MEYERS, LLP Minneapolis, Minnesota Certified Public Accountants 952.835.9090 • Fax 952.8.35.3261 wwwvaemcpas.com