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City of Elk River
<br />March 15, 2001
<br />Page Eleven
<br />Water Fund
<br />The operating cash and investments remained at nearly the same level as the prior year. Total expenses, capital outlay, transfers
<br />and debt service totaled $1,456,998 in 2000. The current operating cash represents 90% of those outlays. The cash reserve is
<br />adequate to meet the current needs of the water fund.
<br />Percent
<br />of
<br />1999 Charges
<br />$ 627,449 100.0%
<br />325,849 51.9
<br />301,600 48.1
<br />163,423 26.0
<br />$ 138,177 22.1%
<br />$ 1,499,657
<br />295,057
<br />$ 1.794.714
<br />$ 2.755.000
<br />Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's
<br />Discussion and Analysis — for State and Local Governments
<br />GASB Statement No. 34 is the result of an almost decade-long effort by GASB to reexamine the financial reporting model for
<br />state and local governments. The most.notable change is the presentation of a set of highly aggregated, "full accrual" financial
<br />statements. At the same time, however, the Statement retains many familiar features of current governmental financial reporting,
<br />in particular fund -based financial statements.
<br />State and local governmental financial statement preparers and auditors will need to comprehend and implement a vast number of
<br />changes in accounting and financial reporting. They will have to explain those changes to persons who are unfamiliar with the
<br />particulars of accounting, much less the unique area of state and local governmental accounting.
<br />The following are some specific areas that need to be addressed with the implementation of this new statement:
<br />Timeline
<br />GASB Statement No. 34 is effective in three phases based on the total annual revenues of the primary government's
<br />governmental and proprietary funds, although earlier application is encouraged. The City is considered to be phase 2. Therefore,
<br />the City is required to implement GASB Statement No. 34 for the calendar year ending 2003.
<br />Management's Discussion and Analysis (MD&A)
<br />MD&A gives an objective and easily readable analysis of a government's financial activities based on currently known facts,
<br />decisions, or conditions. It presents short- and long-term analyses of the government's activities, compares current -year results
<br />with those of the prior year, and discusses the positive and negative aspects of that comparison.
<br />Percent
<br />of
<br />Water Fund
<br />2000
<br />Charges
<br />Charges for services
<br />$ 755,462
<br />100.0%
<br />Operating expenses excluding depreciation
<br />429,776
<br />56.9
<br />Operating income before depreciation
<br />325,686
<br />43.1
<br />Depreciation expense
<br />185,266
<br />24.5
<br />Operating income
<br />140 42
<br />18.6%
<br />Operating cash and investments
<br />$ 1,393,254
<br />Construction reserve cash
<br />429,739
<br />Total cash and investments
<br />1.822.993
<br />Bonds Payable2.570.000
<br />Percent
<br />of
<br />1999 Charges
<br />$ 627,449 100.0%
<br />325,849 51.9
<br />301,600 48.1
<br />163,423 26.0
<br />$ 138,177 22.1%
<br />$ 1,499,657
<br />295,057
<br />$ 1.794.714
<br />$ 2.755.000
<br />Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements — and Management's
<br />Discussion and Analysis — for State and Local Governments
<br />GASB Statement No. 34 is the result of an almost decade-long effort by GASB to reexamine the financial reporting model for
<br />state and local governments. The most.notable change is the presentation of a set of highly aggregated, "full accrual" financial
<br />statements. At the same time, however, the Statement retains many familiar features of current governmental financial reporting,
<br />in particular fund -based financial statements.
<br />State and local governmental financial statement preparers and auditors will need to comprehend and implement a vast number of
<br />changes in accounting and financial reporting. They will have to explain those changes to persons who are unfamiliar with the
<br />particulars of accounting, much less the unique area of state and local governmental accounting.
<br />The following are some specific areas that need to be addressed with the implementation of this new statement:
<br />Timeline
<br />GASB Statement No. 34 is effective in three phases based on the total annual revenues of the primary government's
<br />governmental and proprietary funds, although earlier application is encouraged. The City is considered to be phase 2. Therefore,
<br />the City is required to implement GASB Statement No. 34 for the calendar year ending 2003.
<br />Management's Discussion and Analysis (MD&A)
<br />MD&A gives an objective and easily readable analysis of a government's financial activities based on currently known facts,
<br />decisions, or conditions. It presents short- and long-term analyses of the government's activities, compares current -year results
<br />with those of the prior year, and discusses the positive and negative aspects of that comparison.
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