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I MANCOS WATER CONSERVANCY DISTRICT <br /> NOTES TO THE BASIC FINANCIAL STATEMENTS <br /> December 31, 2011 <br /> I5. Related Party Transactions <br /> The District contracts with the district manager's wife for bookkeeping services. The total paid <br /> Iher for services in 2011 was $3,895. <br /> 6. Capital Assets <br /> I Beginning Ending <br /> Balance Additions Deletions Balance <br /> I Assets not being depreciated <br /> Easement $22,500 $0 $0 $22,500 <br /> Contract and water rights 907,494 907,494 <br /> Land 208,250 208,250 <br /> I Total 929,994 208,250 0 1,138,244 <br /> I Assets being depreciated <br /> Buildings 386,750 386,750 <br /> I Property and Equipment <br /> Improvements 219,766 219,766 <br /> Machinery and equipment 141,647 29,326 26,009 144,964 <br /> ITotal Property and Equipment 361,413 29,326 26,009 364,730 <br /> Total Assets Being Depreciated 361,413 416,076 26,009 751,480 <br /> ILess accumulated depreciation 160,536 24,028 20,812 163,752 <br /> INet Assets Being Depreciated 200,877 392,048 5,197 587,728 <br /> Net Capital Assets $1,130,871 $600,298 $5,197 $1,725,972 <br /> IDepreciation expense for 2011 was $24,028. <br /> 1 7. Interfund Transactions <br /> Transfers between funds represent the amounts used to offset allocations between assets and <br /> Iliabilities in any given year. <br /> In 2011 the General Fund made operating transfers in the amount of $18,200 to the Water <br /> IActivity Enterprise Fund. <br /> 8. Risk Management <br /> IMancos Water Conservancy District is exposed to various risks of loss related to torts, thefts of, <br /> damages to or destruction of assets; errors or omissions; injuries to employees, or acts of God. <br /> I <br /> I 13 <br />