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Financial Analysis of the Government's Funds
<br />As noted earlier, the Organization uses fund accounting to ensure and demonstrate compliance with finance -related legal
<br />requirements.
<br />Governmental funds. The focus of the Organization's governmental funds is to provide information on near -term inflows, outflows
<br />and balances of spendable resources. Such information is useful in assessing the Organization's financing requirements. In particular,
<br />unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal
<br />year.
<br />As of the end of the current fiscal year, the Organization's governmental fund reported an ending fund balance of $526,607 an
<br />increase of $52,074 in comparison with the prior year. Approximately 65 percent of the total amount, $340,607, constitutes
<br />unassigned fund balance, which is available for spending at the Organization's discretion. The remainder fund balance of $186,000 is
<br />committed for purposes described in the notes to the financial statements.
<br />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
<br />was $526,607. As a measure of the General fund's liquidity, it may be useful to compare total fund balance to total fund expenditures.
<br />Total fund balance represents 99 percent of 2013 fund expenditures and 70 percent of 2014 budgeted fund expenditures.
<br />The fund balance of the Organization's General fund increased $52,074 during the current fiscal year. The key factor in this change
<br />was the increase in intergovernmental revenue due to the receipts of grants as well as less than anticipated project costs.
<br />General Fund Budgetary Highlights
<br />The Organization's General fund budget was amended during the year. The amended budget called for expenditures exceeding budget
<br />by $273,800. Actual revenues were over budget by $143,796, mainly due to grant revenues exceeding budget by $135,154.
<br />Expenditures had a positive budget variance of $182,078, mostly due to project costs being less than anticipated.
<br />Capital Asset and Debt Administration
<br />Capital assets. The Organization's investment in capital assets for its governmental activities as of December 31, 2013, amounts to
<br />$126,740 (net of accumulated depreciation). This investment in capital assets includes infrastructure related to the Lambert Creek
<br />Restoration project and monitoring equipment at Whitaker Pond.
<br />Additional information on the Organization's capital assets can be found in Note 3C on page 40 of this report.
<br />Economic Factors and Next Year's Budgets
<br />The Organization considered and prepared the 2013 budget based on the following factors:
<br />• Revenue is primarily from the storm sewer utility assessment, with minor income from grants, service fees and interest.
<br />• Expenditures fall into three main categories: Programs, projects, and general and administration.
<br />• Programs include: monitoring and data analysis, sustainable lake plans, cost -share, education and outreach, maintenance and
<br />48 percent of payroll for 4.0 employees.
<br />• Projects include capital projects, three Community Blue Partnership project installations, stabilization of 210' of Lambert
<br />Creek, Tamarack Floating Island, Gem Lake, Gilfillan Lake, Goose Lake, Wilkinson Lake and TMDL work planning,
<br />implementation of sustainable lake plans and 28 percent of payroll for 4.0 employees.
<br />• Operations and administration include office rent and supplies, bookkeeping and general and program audit, information
<br />systems, insurance, 24 percent payroll for 4.0 employees and legal expenses.
<br />All of these factors were considered in preparing the Organization's budget for the 2014 fiscal year.
<br />Requests for Information
<br />This financial report is designed to provide a general overview of the Organization's finances for all those with an interest in the
<br />Organization's finances. Questions concerning any of the information provided in this report or requests for additional financial
<br />information should be addressed to Stephanie McNamara, Administrator, Vadnais Lake Area Water Management Organization,
<br />800 County Road E East, Vadnais Heights, MN 55127.
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