These two statements report the SWCD's net assets and changes in them. You can think of the

SWCD's net assets - the difference between assets and liabilities-as one way to measure the

SWCD's financial health, or financial position. Over time, increases or decreases in the

SWCD's net assets are one indicator of whether its financial health is improving or deteriorating.

In the Statement of Net Assets and the Statement of Activities, the SWCD presents

Governmental activities. All of the SWCD's basic services are reported here. Appropriations

from the county and state finance most activities.

Reporting the SWCD's General Fund

Fund Financial Statements

Our analysis of the SWCD's general fund follows. The fund financial statements provide

detailed information about the general fund-not the SWCD as a whole. The SWCD presents

only a general fund, which is a governmental fund. All of the SWCD's basic services are

reported in the general fund, which focuses on how money flows into and out of those funds and

the balances left at year-end that are available for spending. The fund is reported using an

accounting method called modified accrual accounting. This method measures cash and all other

financial assets that can be readily converted to cash. The general fund statements provide a

detailed short-term view of the SWCD's general government operations and the basic services it

provides. Governmental fund information helps you determine whether there are more or fewer

financial resources that can be spent in the near future to finance the SWCD's programs. We

describe the relationship (or differences) between governmental activities (reported in the

Statement of Net Assets and the Statement of Activities) and governmental funds in a

reconciliation included with the financial statements.

THE SWCD AS A WHOLE

The SWCD's combined net assets were much higher, increasing from $35,939 to $51,678. In

contrast, last year net assets decreased by $16,046. Looking at the net assets and net expenses of

governmental activities separately, however, two very different stories emerge. Our analysis

focuses on the net assets (Table 1) and changes in net assets (Table 2) of the SWCD's

governmental and activities.

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