VLAWMO Annual Financial Report 2018

Home Search

VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2018 Fund Financial Statements A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The Organization, like other state and local government, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. The Organization currently only uses a general fund. General Fund The General Fund is used to account for essentially the same functions reported as govemmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, the General Fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term financing requirements. Because the focus of the General Fund is narrower than that of the government -wide financial statements, it is useful to compare the information presented for the General Fund with similar information presented for govemmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact by the government's near -term financing decisions. Both the General Fund balance sheet and the General Fund statement of revenues, expenditures and changes in fund balance provide a reconciliation to facilitate this comparison between the General Fund and govemmental activities. The Organization adopts an annual appropriated budget for its General Fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. Notes to the Financial Statements The notes provide additional information that is essential to a full understanding of the data provided in the govemment-wide and fund financial statements. Government -Wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a govemment's financial position. In the case of the Organization, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $810,122 at the close of the most recent fiscal year. The largest portions of the Organization's net position are unrestricted and available to meet the ongoing needs of the Organization. The Organization has a total of 62% classified as investment in capital assets (e.g., land, buildings, machinery, and equipment). The Organization uses these capital assets to provide services to its member cities; consequently, these assets are not available for future spending. (7)