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Draft 2-4-2014
<br />LA PORTE AREA WATER AUTHORITY
<br />Management’s Discussion and Analysis (continued)
<br />Notes to the Financial Statements
<br /> – The notes provide additional information that is essential to a full
<br />understanding of the data provided in the fund financial statements. The notes to the financial statements
<br />can be found on pages 13-19 of this report.
<br />Other Information
<br /> – In addition to the basic financial statements and accompanying notes, this report
<br />also presents certain supplementary information concerning the Water Authority’s operations. Required
<br />supplementary information can be found on pages 23-36 of this report.
<br />Financial Analysis of the Government’s Funds
<br />As noted earlier, net position may serve over time as a useful indicator of a government’s financial
<br />position. In the case of the La Porte Area Water Authority, assets exceeded liabilities and deferred
<br />inflows of resources by $7,497,334 at the close of the fiscal year.
<br />The largest portion of the Water Authority’s net position ($4,479,964) reflects its investment in capital
<br />assets (e.g., water production and distribution system), less any related debt used to acquire those assets
<br />that are still outstanding. The City uses these capital assets to provide water services to the participants;
<br />consequently, these assets are not available for future spending. Although the Water Authority’s
<br />investment in its capital assets is reported net of related debt, it should be noted that the resources needed
<br />to repay this debt must be provided from other sources, since the capital assets themselves cannot be used
<br />to liquidate these liabilities.
<br />La Porte Area Water Authority’s Net position
<br />Business-Type Activities
<br />20132012, restated
<br />Current and other assets$ 3,105,835$ 3,030,163
<br />Capital assets 6,809,826 7,274,825
<br />Total Assets
<br /> 9,915,661 10,304,988
<br />Current liabilities 711,390 841,455
<br />Noncurrent liabilities 1,699,862 2,347,222
<br />Total Liabilities
<br /> 2,411,252 3,188,677
<br />Total Deferred inflows of resources
<br /> 7,075 9,119
<br />Net Position:
<br /> Net Investment in capital assets 4,479,964 4,293,484
<br /> Restricted 1,147,160 289,500
<br /> Unrestricted 1,870,210 2,524,208
<br />Total Net Position
<br />$ 7,497,334$ 7,107,192
<br />An additional portion of the Authority’s net position (15%) represents resources that are subject to
<br />external restrictions for debt service. The remaining balance of unrestricted net position ($1,870,210)
<br />represents funds available to meet other ongoing obligations to participants and/or creditors.
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