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ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY <br /> TO: ECONOMIC DEVELOPMENT AUTHORITY <br /> COMMISSIONERS <br /> FROM: LORI JOHNSON <br /> DATE: JULY 7, 1995 <br /> SUBJECT: FINANCIAL STATEMENT <br /> Last month a more detailed financial statement was distributed to the EDA Commissioners. The report <br /> was revised and expanded in an effort to provide more detailed information on the financial activity of the <br /> EDA. Bill Rubin and I discussed the May statement before it was distributed because there were some <br /> areas that I felt may raise questions,and I wanted him to be aware of them and have answers to your <br /> questions. However,I understand that there were some issues that need further explanation. <br /> First,the city maintains its accounting records on a modified accrual basis. This means that expenditures <br /> are recognized in the year in which they are incurred even though the cash transaction may not be <br /> recorded in that year. Revenues are also recognized in the year in which they are earned even though the <br /> cash may not be received until the following year. For this reason,adding the year to date revenues and <br /> subtracting the year to date expenditures from the January cash balance will not equal the May cash <br /> balance. I understand this caused some confusion on the May statement. The information on the May <br /> statement was correct;if fund balance information was presented,you would see that adding the 1995 <br /> revenues and subtracting the 1995 expenditures from the January fund balance would equal the May fund <br /> •,_ balance. However,since the cash balance is more often referred to,I did not include the fund balance <br /> information and do not plan to add it to future statements unless you request that information. <br /> Finally,the June statement is attached for your review. It has been revised and simplified. Please call <br /> prior to the EDA meeting if you have questions on any of the information as presented. Additional <br /> information can be provided if requested. <br /> • <br /> P.O. Box 490 • 13065 Orono Parkway • Elk River, MN 55330-1743 • (612) 441-7420• Fax: (612) 441-7425 <br /> Equal Opportunity Housing and Equal Opportunity Employment <br />