VLAWMO Annual Financial Report 2018

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VADNAIS LAKE AREA WATER MANAGEMENT ORGANIZATION MANAGEMENT'S DISCUSSION AND ANALYSIS DECEMBER 31, 2018 Government -Wide Financial Analysis (Continued) Revenues by Source — Governmental Activities Operating Grants and Contributions 18.8% General Revenues 0.8% Financial Analysis of the General Fund As noted earlier, the Organization uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. General Fund The focus of the Organization's General Fund is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the Organization's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the Organization's General Fund reported an ending fund balance of $607,317 an increase of $190,268 in comparison with the prior year. Approximately 44% of the total amount, $266,726, constitutes unassigned fund balance, which is available for spending at the Organization's discretion. The remainder fund balance of $340,591 is committed for purposes described in the notes to the financial statements. As a measure of the General Fund's liquidity, it may be useful to compare total fund balance to total fund expenditures. Total fund balance represents 81% of 2018 fund expenditures and 46% of 2017 fund expenditures. General Fund Budgetary Highlights The Organization's General Fund budget was not amended during the year. Actual revenues were over budget by $172,845, mainly due to intergovernmental grants exceeding budget by $151,278. Expenditures were under budget with a variance of $17,423 mostly due to project costs being lower than anticipated.