ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED DECEMBER 31, 2007
ANNUAL FINANCIAL REPORT FOR THE YEAR
ENDED DECEMBER 31, 2007
TABLE OF
CONTENTS:
MANAGEMENT’S DISCUSSION AND ANALYSIS---------------------------------------------------------- 2-7
§
Page 2 includes: Financial
Highlights; and Using This Annual Report;
§
Page 3 includes: Statement of Net Assets and Statement of Activities;
and Fund Financial Statements;
§
Page 4 includes: The District as a Whole-Governmental
Activities: Statement of Net Assets; Table 1-Statement of Net Assets; and Statement of Activities;
§
Page 5
includes: Table 2-Changes in Net Assets;
§
Page 6
includes: The District’s Funds; General
Fund Budgetary Highlights; and Capital Asset and Debt Administration-Capital
Assets
§
Page 7
includes: Table 3-Captial Assets at Year-end
(Net of Depreciation); Long-Term Liabilities; Economic Factors and Next Year’s
Budget; and Contacting the District’s Financial Management
GOVERNMENT-WIDE/FUND FINANCIAL STATEMENTS:
§
Statement of Net
Assets and Governmental Fund Balance Sheet------------------------------------------- 8
§
Statement of
Activities/Gov. Fund Revenues, Expenditures and Changes in Fund Balance-------------- 9
§
Budgetary
Comparison Schedule – Budget and Actual------------------------------------------------------ 10
§
Breakdown of
§
Deferred Revenue----------------------------------------------------------------------------------------------- 12
RECONCILIATION STATEMENTS:
§
Reconciliation of
the Statement of Revenues, Expenditures and Changes in Fund Balance of
Governmental Funds to the Statement of Activities------------------------------------------------------------------------------------------ 13
§
Reconciliation of
the Balance Sheet of Governmental Funds to the Statement of Net Assets---------- 13
NOTES TO THE FINANCIAL STATEMENT:
I.
Summary of
Significant Accounting Policies--------------------------------------------------------------- 14-17
Included in this section: Financial Reporting Entity; Basis of
Presentation – Fund Accounting;
Government –Wide Financial Statements; Fund Financial
Statements; Budget Information, Assets, Liabilities, and Equity Accounts;
Explanation of Adjustments Column in Statements; Vacation and Sick Leave
II.
Stewardship,
Compliance and Accountability------------------------------------------------------------------ 17
III.
Deposits and
Investments---------------------------------------------------------------------------------------- 17
IV. Changes in Capital Assets--------------------------------------------------------------------------------------- 18
V.
Deferred Revenue------------------------------------------------------------------------------------------------ 18
VI. Compensated Absences Payable and Adjustments to the
Financial Statements--------------------------- 18
VII. Risk Management------------------------------------------------------------------------------------------------- 18
VIII. Pension Plan: Plan Description and Funding Policy----------------------------------------------------------- 19
IX.
Operating Leases------------------------------------------------------------------------------------------------- 19
ATTACHMENTS:
§
Attachment
1-Guide to Capital Assets------------------------------------------------------------------------- 20
§
Attachment
2-Schedule of Capital Assets for January
1, 2007-------------------------------------------- 21
§
Attachment
3-Schedule of Capital Assets and Changes
in 2007--------------------------------------- 22-23
§
Attachment
4-Summary of Changes in Capital Assets------------------------------------------------------ 24
MANAGEMENT’S
DISCUSSION AND ANALYSIS
DECEMBER 31,
2007
This section of the annual
financial report of the Lincoln Soil and Water Conservation District presents
the Management Discussion and Analysis.
The discussion and analysis provides an overview of the District’s
financial activities for the fiscal year ended December, 31, 2007. Since this information is designed to focus
on current year activities, resulting changes, and currently known facts, it
should be read in conjunction with the District’s basic financial statements
following this section.
FINANCIAL HIGHLIGHTS
·
The District’s revenues on the Statement of Activities and Governmental
Revenues, Expenditures and Changes in Fund Balance increased due to 1) no
purchases/additions to the Capital Outlay, and 2) the revenue from the Federal
Government.
·
The Statement of Net Assets and Governmental Fund Balance Sheet
reflected Designated Fund Balances that were added for specific designated items
deemed by the District.
USING THIS ANNUAL REPORT
This annual report consists of four parts: 1)
Management’s Discussion and Analysis (MDA); 2) Financial Statements; 3)
Reconciliation Statements; and 4) Notes to the Financial Statement. These topics are further explained as
follows:
§
Management’s Discussion and Analysis:
This section relates mostly to the changes in the District’s finances
and explains the Governmental Wide-Financial Statements in detail. The MDA is on pages 2-7;
§
Financial Statements – pages 8-12:
·
The Governmental Wide-Financial Statements include a series of
financial statements that provide information about the activities of the
District as a whole and present a longer-term view of the District’s
finances. For governmental activities,
these statements tell how these services were financed in the short term as
well as what remains for future spending; and
·
The Fund Financial Statements report the Breakdown of County Revenue
and the Deferred Revenue Breakdown of the District.
§
Reconciliation Statements – page 13:
·
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities explains
the differences in the two statements.
The Statement of Activities under the “Adjustments” column shows the
differences in the two statements; and
·
Reconciliation of the Balance Sheet of Governmental Funds to the Statement
of Net Assets explains the differences in these two statements. The Statement of Net Assets under the
“Adjustments” column shows the differences in the two statements.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
§
Notes to the Financial Statement, provide information that is essential
to a full understanding of the data provided in the government-wide fund
financial statements. These notes
provide information such as: 1) Summary of Significant Accounting Policies; 2)
Stewardship, Compliance and Accountability; 3) Deposits and Investments; 4)
Changes in Capital Assets; 5) Deferred Revenue; 6) Compensated Absences Payable/Adjustments
to the Financial Statements; 7) Risk Management; 8) Pension Plan; and 9) Operating
Leases. The Notes to the Financial
Statement are on pages 14-19.
Since District’s are
single-purpose special purpose governments, they are generally able to combine
the government-wide and fund financial statements into single
presentations. The District has elected
to present in this format.
Statement of Net Assets and Statement of Activities
Our analysis of the Lincoln Soil and Water
Conservation District as a whole begins on page 8. One of the most important questions asked
about the District’s finances is, “Is the District as a whole better or worse
off as a result of the year’s activities?”
The Statement of Net Assets and the Statement of Activities report
information about the District as a whole and about its activities in a way
that helps answer this question. These
statements include all assets and liabilities using accrual basis of
accounting, which is similar to the accounting used by the most private-sector
companies. All of the current year’s
revenues and expenses are taken into account regardless of when cash is
received or paid.
These two statements report
the District’s net assets and changes in them.
You can think of the District’s net assets - the difference between
assets and liabilities - as one way to measure the District’s financial health,
or 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. You will need to consider other non-financial
factors to assess the overall health of the District.
In the Statement of Net
Assets and the Statement of Activities, the District presents Governmental
activities. All of the District’s basic
services are reported here. Appropriations from the county and state also finance
activities.
Reporting the
district’s general fund:
Fund
Financial Statements
The Lincoln Soil and Water Conservation District presents
only a general fund, which is a governmental fund. All of the District’s basic services are
reported in the general fund, which focuses on how money flows into and out of
those funds and the balances left at year-end that are available for
spending. The funds reported using an
accounting method called modified accrual accounting. This method measures cash and all other
financial assets that can be readily converted to cash. The general fund statements provide a
detailed short-term view of the District’s general government operations and
the basic services it provides.
Governmental fund information helps you determine whether there are more
or fewer financial resources that can be spent in the near future to finance
the District’s programs. We describe the
relationship (or differences) between governmental activities (reported in the
Statement of Activities and the Statement of Net Assets) and governmental funds
through the Reconciliation’s of these statements, which are on page 13 (after
the Fund Financial Statements). The
financial reports are on pages 8 – 12 of this report.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
THE DISTRICT AS
A WHOLE → GOVERNMENTAL ACTIVITIES:
Statement of
Net Assets and Governmental Fund Balance
The Lincoln Soil and Water Conservation District’s
net assets increased from one year ago.
Our analysis below focuses on the net assets (Table 1) of the District’s
governmental activities.
Table 1
Statement of Net Assets
Governmental Activities
Dec
31, 2007 Dec 31, 2006
Current Assets
$638,961.33 $583,804.97
Capital Assets
Net of Depreciation
$100,713.64 $112,760.52
Total Assets
$739,674.97 $696,565.49
Current and
Other Liabilities
$ 74,124.95 $ 77,340.37
Net Assets:
Invested in Capital Assets $100,713.64 $112,760.52
Unrestricted/Designated $149,449.88 $
98,158.21
Unrestricted/Undesignated $426,303.39 $418,669.50
Minus Compensated Absences (Long-Term Liab.) -$
10,916.89 -$ 10,363.11
Total Net Assets $665,550.02 $619,225.12
Total Liabilities
and Assets
$665,550.02 $619,225.12
The Total Net Assets increased
from $619,225.12 in 2006 to $665,550.02 in 2007; a difference of $46,324.90
(7.5%). The current assets of the District’s
governmental activities increased by $43,109.48 (6.2%) from one year ago, while
the Capital Assets Net of Depreciation decreased by $12,046.88 (12%). The District had more revenues than expenditures
in 2007. Under the Net Assets, the Unrestricted/Designated
Fund Balance/Net Assets are designated for certain programs specified by the
State and/or District. Unrestricted/
Undesignated Fund Balance/Net Assets, are the part of net assets that can be
used to finance day-to-day operations without constraints established by debt
covenants, enabling legislation, or other legal requirements. The Unrestricted/Undesignated Fund Balance/Net
Assets increased from $418,669.50 to 4426,303.39 at the end of 2007.
Statement of
Activities and Governmental Fund Revenues, Expenditures and Fund Balance
Table 2 (shown on the next
page) reflects changes in Governmental activities of the District. It also reflects some of the actual District’s
Charges for Services - District program changes from 2006 to 2007.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
Table 2
Changes in Governmental
Activities:
Governmental Activities
Revenues Dec
31, 2007 Dec 31, 2006
Local-Pheasants
Forever $ 1,000.00 $ -0-
County
$114,578.43 $107,060.14
State $ 92,759.32 $ 81,087.54
Federal $ 32,429.87 $ 26,275.25
USFWS ($ 1,194.94) ($ 1,194.94)
Interest Earnings $ 25,957.57 $ 10,912.93
Other $ 3,745.21 $ 3,517.83
Women’s Day
Program $ 1,818.00 $ 1,270.00
Gain-Sale of
Assets $ -0- $ 50.00
Charges for
Services:
Trees $ 95,141.27 $121,093.13
Tree Planter $ 11,141.45 $ 14,279.04
Tubex/Gopher Getter/Netting/Flags/NTD, etc. $ 40.00 $ 115.00
Tree Mats $ 19,987.94 $ 46,263.21
Tree Repellent $ 764.00 $ 971.03
Seed Sales $ 2,301.40 $ 6,343.18
Finance Charges $ 343.95 $ 29.90
Total Revenues $471,681.21 $419,203.24
Expenditures
Conservation-All
Other $272,767.39 $272,074.24
Capital
Outlay $ -0- $ 50,159.92
Charges for
Services:
Trees $ 63,960.09 $ 84,195.44
Tree Planter $ 3,860.18 $ 3,298.61
Tubex/Gopher Getter/Netting/Flags/NTD, etc $ -0-
$ 502.10
Tree Repellent $ 239.67 $ 856.51
Seed
Expense $ 2,024.98 $ 4,752.59
Tree Mats $ 600.00 $ 47,723.34
Total Expenditures $412,755.65 $474,090.18
Changes in
Revenues/Expenditures from previous year:
§
§
State funds increased by $1,600 due mostly to the unencumbered/unspent Deferred
Revenue (breakdown of deferred revenue-page 12).
§
Federal funds reflect work done by the district on the Environmental
Quality Incentive Program and Conservation Reserve Program-Technical Service
Provider, which increased by $6,100.
§
District’s revenues for Charges for Services (programs administered
through the District) decreased considerably for the Trees and Matting, due to
decrease in sales.
§
Total expenditures decreased due mostly to no purchases of capital
outlay, drop in tree expenses/sales; and little tree mat purchases.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
THE DISTRICT’S FUNDS
As the District completed
the year, under the general fund column as presented in the Statement of Net
Assets on page 8, reported a total fund balance of $575,753.27 (includes
Designated and Undesignated Fund Balances).
This amount plus the net of accumulated depreciation ($100,713.64) and minus
the Compensated Absences ($10,916.89) gives a total of $665,550.02 under the
“Adjustments” column for the Statement of Net Assets. This amount was above last year’s total of $619,225.12. Reasons for the increase in total net assets are
due to the decrease of total liabilities,
and the total assets being more in 2007 compared to 2006. The primary reasons for the General Fund’s surplus
mirror the Statement of Net Assets under the Fund Financial Statements section
as highlighted on page 4 of this report.
General Fund Budgetary Highlights
Over the course of the year,
the District revised its budget in December, 2007. The budget changes are reflected on the
Budgetary Comparison Schedule found on page 10.
The changes made to the revised budget for the revenues reflect an
overall increase of the final budget, with actual dollars being less than
budgeted but more than originally budgeted.
This is partially due to an increase in Total Intergovernmental Revenues
(mainly the Work Lands Initiative Fund) and Interest Earnings. The actual expenditures reflect a increase, with
the actual dollars spent being higher than the final budget, but $30,000 higher
than the original budget. This being due
mainly to the Working Lands Initiative and the actual District expenditures being
considerable less than the original budget.
With these adjustments, the
actual changes to appropriations (expenditures) were $9,918.65 above/higher
than the final budget amount. The most
significant positive variance occurred in the Working Lands Initiative, in
which these are pass through dollars.
On the other hand, resources
available for appropriation (revenues) were -$21,879.21 above the final
budgeted amount. The county, state, federal
and charges for services were higher than budgeted in the final budget
The following schedules are
attached which define the changes in capital assets:
§
Guide to Capital Assets (Attachment #1-page 20);
§
Schedule of General Capital Assets for January 1, 2006 (Attachment #2-page
21);
§
Schedule of General Capital Assets and Changes in 2006 (Attachment #3-pages
22-23); and
§
Summary of Changes in General Capital Assets (Attachment #4-page 24)
The Schedules of General
Capital Assets and the Summary of Changes in General Capital Assets consists of
capital assets over the District threshold of $1,000.00. At the end of 2007, the District had $182,304.01
invested in a broad range of capital assets, including Land/Land Improvement,
Buildings, Vehicles, Equipment and Machinery (Table 3-next page). This amount represents a net decrease of total
capital assets (including additions and deductions) of $3,264 or 1.5% less than
last year.
MANAGEMENT’S
DISCUSSION AND ANALYSIS
(Net of Depreciation)
Governmental Activities
Assets Dec
31, 2007 Dec 31, 2006
Land/Land Improvements/Infrastructure $ 16,141.94 $ 16,141.94
Buildings/Construction-In-Progress $ 67,052.92 $ 67,052.92
Vehicles $ 43,843.37 $ 43,843.37
Equipment/Machinery $ 55,265.78 $ 58,529.78
Total Assets $182,304.01 $185,568.01
(Net
of Depreciation) $100,713.64 $112,760.52
This year’s deletions
consist of two computers-$3,264.00.
Long-Term Liabilities
Long-term liability obligations include accrued
vacation pay for which employees are paid upon termination from the District by
retirement, illness or death. Detailed
information about the District’s long-term liabilities is presented in the Notes
to the Financial Statement under Section I. Summary of Significant Accounting
Policies- F. Vacation and Sick Leave on page 17; and under VI. Compensated
Absences Payable on page 18.
The District’s elected
officials considered many factors when setting the fiscal-year 2008 budget. Some of the economic factors taken into
account for the 2008 budget include: sales of trees and tree matting, State funding,
Federal funding, and county funding.
Expense factors will be the employee salary increases and tree expenses.
CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT
This financial report
designed to provide our citizens, taxpayers, customers, and investors and
creditors with a general overview of the District’s finances and to show the District’s
accountability for the money it receives.
If you have questions about this report or need additional financial
information, contact the Lincoln Soil and Water Conservation District,
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STATEMENT OF
NET ASSETS AND GOVERNMENTAL FUND BALANCE SHEET |
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FOR THE YEAR
ENDED DECEMBER 31, 2007 |
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General |
Adjustments |
Statement of |
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|
Fund |
See Reconciliation |
Net Assets |
|
Assets |
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|
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Cash |
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|
Checking Account |
$ 6,905.19 |
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$ 6,905.19 |
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Flex Checking Account |
$ 5,000.00 |
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$ 5,000.00 |