MILLE LACS SOIL AND WATER CONSERVATION DISTRICT

NOTES TO THE FINANCIAL STATEMENTS

December 31,2006

Note 5 - Stewardship. Compliance. and Accountabilitv

Excess of expenditures over budget - The general fund had expenditures in excess of budget for the year

as follows: Expenditures $149,371; Budget $110,696; Excess $38,675.

Note 6 - Due From Other Governments

Represents the amount due from the Minnesota Department of Natural Resources.

Note 7 - Reconciliation of Fund Balance to Net Assets

Governmental Fund Balance, January 1

Plus: Excess of Revenue Over Expenditures

Governmental Fund Balance, December 31

$37,187

20.147

Adjustments from Fund Balance to Net Assets:

Add: Capital Assets, net of depreciation

Less: Long Term Liabilities

Net Assets

$488

($6.144)

Change in fund balance

$20,147

Note 8 - Reconciliation of Chanqe in Fund Balance to Chanqe in Net Assets

The cost of capital assets are allocated over the capital

asset's useful lives at the government-wide level.

(72)

In the statement of activities certain operating expenses

including compensated absences are measured by

the amounts earned.

(4.336)

Net change in net assets

$15739

15

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