Reso 2011-053 Attachment - Laserfiche WebLink

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OVERVIEW OF THE BASIC FINANCIAL STATEMENTS Management's Discussion and Analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financialstatements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide Financial Statements The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to statements of a private -sector business. They are comprised of the Statement of Net Assets and Statement of Activities and Changes in Net Assets. The Statement of Net Assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities and Changes in Net Assets presents information showing how the government's net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying event giving - rise to the change occurs, regardless of the timing of the related cash flows. Thus revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g. uncollected taxes and earned but unused vacation leave). The government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenue (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). Both of the above financial statements have separate sections for three different types of programs or activities. These three types of activities are: Governmental Activities - The activities in this section are mostly supported by taxes and charges for services. The governmental activities of the City include General Government, Public Safety, Engineering & Transportation, Recreation and Culture, Library and Community Development. Business -Type Activities — These functions normally are intended to recover all or a significant portion of their costs through user fees and charges to external users of goods and services. The business -type activities of the City include the Water Pollution Control Plant, Environmental Services, Shoreline Enterprise, and Storm Water Utility. Discretely Presented Component Units - The City of San Leandro has no discretely presented component units to report upon. The government -wide financial statements can be found on pages 23 through 25 of this report.