ERMUSR FINANCIALS 02-14-2006 - Laserfiche WebLink

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PROFIT AND LOSS NARRATIVE The financial statements this month represent the monthly operations, as well as most of the audit adjustments that could be determined at this time. These adjustments would include current portion of long term debt, accrued interest, accrued payables, vacation and sick payable, prepaid amounts, and inventory adjustments. By including these, it shouldpresent very few differences from the final audited numbers. There will still be some miscellaneous items such as water infrastructure contributed by developers, final depreciation, and shared overhead costs for the building (that we split with the City) that won't be known until the completion of the audit. Interest income was an area that was affected by the pre-audit adjustments. The interest that was earned on maturing CDs throughout the year had been booked to interest income. Some of that was already booked in previous years as an interest receivable and so that was corrected for year end. Cash balances finished down from the beginning of the year, rather than the projected $100,000 surplus. (Part of the error in the projection was the interest earned on the investments being included when it should not have been.) Other unplanned uses of cash were inventory purchases and consulting work related to the Target project: This cash shortage should correct itself in the next few months as we move forward with the bond funding for this project. The electric department finished the year at a net income of $1,436,237, $308,465 over last year. Revenues increased by 11 %, 'but expenses were pretty close at a 10% increase. Just about every line item showed an increase, affirming the growth that the area is seeing. The water department finished the year at a net income of $213,553. The prior year had a net income of $1,797,454, but the "contributions from developers" of $1,495,000 needs to factored in. Once this line item is taken out, the revenues from last year were $301,501, which still shows a decrease in 2005 compared to 2004 of approximately $88,000. This is $88,000 difference is largely attributed to the 5%/95% split for a portion of the 2004 year compared to the 25%/75% split the entire 2005 year. An audit adjustment will still need to be made for 2005 for the "contributions from developers" in 2005, but the number will be significantly smaller than last year.