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Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities
<br />in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund
<br />financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources
<br />available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing
<br />requirements.
<br />Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the
<br />information presented for governmental funds with similar information presented for governmental activities in the government -wide
<br />financial statements. By doing so, readers may better understand the long-term impact by the government's near -term financing
<br />decisions. Both the governmental fund balance sheets and the governmental fund statements of revenues, expenditures and changes in
<br />fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
<br />The Organization adopts an annual appropriated budget for its General fund. A budgetary comparison statement has been provided
<br />for the General fund to demonstrate compliance with this budget.
<br />The basic governmental fund financial statements start on page 28 of this report.
<br />Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data
<br />provided in the government -wide and fund financial statements. The notes to the financial statements start on page 33 of this report.
<br />Government -wide Financial Analysis
<br />As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the case of the
<br />Organization, assets exceeded liabilities by $639,398 at the close of the most recent fiscal year.
<br />The largest portions of the Organization's net position are unrestricted and available to meet the ongoing needs of the Organization.
<br />The Organization has a total of 20 percent classified as investment in capital assets (e.g., land, buildings, machinery and equipment).
<br />The Organization uses these capital assets to provide services to its member cities; consequently, these assets are not available for
<br />future spending.
<br />Vadnais Lake Area Water Management Organization's Summary of Net Position
<br />December 31, Increase
<br />2013 2012 (Decrease)
<br />Assets
<br />Current $ 1,094,496 $ 1,024,680 $ 69,816
<br />Capital, net of accumulated depreciation 126,740 138,110 (11,370)
<br />Total assets
<br />1,221,236 1,162,790 58,446
<br />Liabilities
<br />Current 559,674 534,629 25,045
<br />Noncurrent 22,164 19,643 2,521
<br />Total liabilities
<br />581,838 554,272 27,566
<br />Net position
<br />Net investment in capital assets 126,740 138,110 (11,370)
<br />Unrestricted 512,658 470,408 42,250
<br />Total net position $ 639,398 $ 608,518 $ 30,880
<br />At the end of the current fiscal year, the Organization is able to report positive balances in both categories of net position.
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