C150232 financial docs

• Contract/PO #: C150232
• Contractor Name: Lower Arkansas Valley WCD
• Contract Type: Grant
• Loan Projects - Doc Type: Report

09/12/2006 TUE 15:52 FA% 7192545150 LAV�YCD Fax ��� Peter Nichols f�005/029
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LAVWCD Management's Discussion and Analysis
� Qur discussion and analysis of the Lower Arkansas Valley Water Conservancy District financial
l.: performance provides an overview of the DistricYs financial activities for the year ended December
31, 2004. This information is presented in con,junction with the audited financial statements that
�� follow this section. This year reflects the first year that GASB No. 34 guidelines were foilowed,
;.; accordingly, it becomes the baseline mark for reporting net assets on an entity wide basis and
comparative analysis is not part of management's discussion and analysis.
Overview of the Financial Statements
The financial statements presented herein include all of the activities of the District as prescribed by
GASB Statement No. 34.
District-Wide Financial Statements
The district-wide statement consists of the Statement of Net Assets and the Statement of Activities.
T'hese statements report information about the District as a whole and include all assets and liabilities
-� and activities of the District in a manner similar to private sector businesses. The District's net assets,
the difference between assets and liabilities-is one way to measure the District's financial position.
Over time, increases or decreases in the District's net assets are one indicator of whether its financial
health is improving or deteriorating. In the Statement of Net Assets and the Statement of Ac�ivities,
the District is divided into two Idnds of activities:
Governmental Activities-The activity of the District's general fund is reported here.
Property taaces, specific ownership taxes, and interest income make up the majority of the
revenues and general and administrarion expenditures along with water leasing are the major
activities of this fund.
Business-Type Activities- The District manages an enterprise activity, which develops and
operates the District's water rights assets, coupled with the notes issued for the acquisitions
on the water rights. The activities of the enterprise fund are supported by transfers from the
general fund and water leasing.
Fund Financial Statemeuts
A fund is a grouping of related accounts that is used to main#ain control over resources that have been
segregated for specific activities ar objectives. The District, like other special districts, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. The funds
of the District are segregated into two categories: governmental funds and proprietary funds.
Governmental Fund. The District's basic services are reported in the governmental
fund, which focus on how money flows into and out of those funds and the balances
left at year-end that are available for spending. This fund is reported using the
modified accrual basis of accounting, which measures cash and other financia] assets
� that can readily be converted to cash. The governmental fund statements provide a
, detailed short-term view of the District's general government operations and the
basic services it provides. Govemmental fund information helps determine whether
' there are more or fewer financial resources that can be spent in the near future to
finance the District's projects.
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:.. Proprietary Fund. The District maintains one proprietary fund an enterprise fund.
The enterprise fund is reported using the accrual basis of accounting. Entezprise
funds are used to report the same functions presented as business-type activity in the
?: govemment-wide financial statements but pzovide more detail and additional