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The statement of revenues, expenses and changes in fund net assets presents information showing how
<br /> the government's net assets changed during the fiscal year. All changes in net assets are reported when
<br /> the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
<br /> Thus, revenues and expenses are reported in this statement for some items that will only result in cash
<br /> flows in future fiscal periods (e.g., uncollected receivables and accounts payable due to suppliers).
<br /> The fund financial statements can be found on pages 7 — 9 of this report.
<br /> Notes to the Financial Statements. The notes provide additional information that is essential to a full
<br /> understanding of the data provided in the fund fmancial statements. The notes to the fmancial
<br /> statements can be found on pages 10 —16 of this report.
<br /> Other Information. In addition to the basic financial statements and accompanying notes, this report
<br /> also presents certain supplementary information concerning the Authority's operations. Supplementary
<br /> information can be found on pages 17 — 30 of this report.
<br /> FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
<br /> As noted earlier, net assets 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 by $6,624,684 at
<br /> the close of the fiscal year.
<br /> The largest portion of the Authority's net assets (60 %) reflects its investment in capital assets (e.g.,
<br /> water production and distribution system), less any related debt used to acquire those assets that are still
<br /> 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 Authority's investment in
<br /> its capital assets is reported net of related debt, it should be noted that the resources needed to repay this
<br /> debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate
<br /> these liabilities.
<br /> LA PORTE AREA WATER AUTHORITY'S NET ASSETS
<br /> 2010 2009
<br /> Current and other assets $ 2,744,898 $ 2,447,114
<br /> Capital assets 8,198,640 8,659,811
<br /> Total assets 10,943,538 11,106,925
<br /> Current liabilities 713,028 619,429
<br /> Noncurrent liabilities 3,605,826 4,080,000
<br /> Total liabilities 4,318,854 4,699,429
<br /> Net assets:
<br /> Invested in capital assets, net of related debt 3,988,582 4,054,811
<br /> Restricted 680,049 730,850
<br /> Unrestricted 1,956,053 1,621,835
<br /> Total net assets $ 6,624,684 $ 6,407,496
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