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<br />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 />
<br />The fund financial statements can be found on pages 6 - 8 of this report.
<br />
<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 financial statements. The notes to the financial
<br />statements can be found on pages 9 - 15 of this report.
<br />
<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 16 - 30 of this report.
<br />
<br />FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
<br />
<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 $5,805,557 at
<br />the close of the fiscal year.
<br />
<br />The largest portion of the Authority's net assets (56%) 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 />
<br />LA PORTE AREA WATER AUTHORITY'S NET ASSETS
<br /> 2007 2006
<br />Current and other assets $ 2,698,496 $ 2,247,990
<br />Capital assets 8,862,724 9,304,637
<br />Total assets 11,561,220 11 ,552,627
<br />Current liabilities 645,663 621,603
<br />Noncurrent liabilities 5,110,000 5,595,000
<br />Total liabilities 5,755,663 6,216,603
<br />Net assets:
<br />Invested in capital assets 3,267,724 3,249,637
<br />Restricted 746,553 747,620
<br />Unrestricted 1,791,280 1,338,767
<br />Total net assets $ 5,805,557 $ 5,336,024
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