VLAWMO Annual Financial Report 2013

Home Search

Financial Position and Results of Operations Our principal observations and recommendations are summarized on the following pages. These recommendations resulted from our observations made in connection with our audit of the Organization's financial statements for the year ended December 31, 2013. General Fund The fund balance at December 31, 2013 was $526,607, an increase of $52,074 in comparison with the prior year. The total unassigned fund balance ($340,607) represents 99 percent of the 2013 total expenditures, while total fund balance represents 70 percent of the 2014 budgeted expenditures. The remaining fund balance ($186,000) is committed for future use. A table summarizing the General fund balance in relation to budget follows: Year Percent General General of Fund Fund Balance Budget Fund Balance to December 31 Year Budget Budget 2009 $ 254,419 2010 $ 432,693 59 % 2010 336,309 2011 441,526 76 2011 381,076 2012 512,293 74 2012 474,533 2013 715,674 66 2013 526,607 2014 747,151 70 $900,000 $800,000 $700,000 $600,000 - $500,000 $400,000 $300,000 $200,000 $100,000 $- Fund Balance as a Percent of Next Year's Budget $432,693 $441,526 74% 76% $512,293 $715,674 70% $747,151 59% 2009 2010 2011 2012 2013 2014 --General Fund Balance --Budget The purposes and benefits of a General fund balance are as follows: • Expenditures are incurred somewhat evenly throughout the year. However revenues are not received evenly. An adequate fund balance will provide the cash flow required to finance the General fund expenditures. • Expenditures not anticipated at the time the annual budget was adopted may need immediate Board of People Directors action. These would include capital outlay replacement, lawsuits and other items. An adequate +Process. fund balance will provide the financing needed for such expenditures. GOlno. 13cvont1t1., -6- \[libbers