2005-09-14 CC Packet - Laserfiche WebLink

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NORTH METRO TELECOMMUNICATIONS COMMISSION Required Supplementary Information Management's Discussion and Analysis December 31, 2004 The management of the North Metro Telecommunications Commission (NMTC) offers readers of our financial statements the following narrative overview and analysis of our financial activities for the year ended December 31, 2004. Basic Financial Statements Our basic financial statements are prepared using proprietary fund (enterprise fund) accounting that uses the same basis of accounting as private-sector business enterprises. The NMTC is operated under one enterplise fund. Under tills method of accounting, an economic resources measurement focus and an accrual basis of accounting is used. This discussion and analysis does not include comparative data for prior years, as tIlls infonnation is not available for the first year of implementation of Governmental Accounting Standards Board (GASB) Statement Number 34. Revenue is recorded when eamed and expenses are recorded when incurred. The basic financial statements include a statement of net assets, a statement of revenues, expenses and changes in net assets, and a statement of cash flows. These are followed by notes to the financial statements. In addition to the basic financial statements, this report also contains required supplementary infoffi1ation pertaining to the schedule of revenues and the retirement plan of the NMTC. The statement of net assets presents information on the NMTC's assets and liabilities, with the difference between the two reported as net assets. Over time, increases and decreases in net assets may serve as a useful indicator of whether the financial position of the NMTC is improving or deteriorating. The statement of revenue, expenses and changes in net assets reports the operating revenues and expenses and non-operating revenues and expenses of the NMTC for the fiscal year with the difference - the net income or loss - being combined with any capital grants to determine the net change in assets for the fiscal year. That change combined with the net assets at the end of the previous year total to the net assets at the end of the CUlTent fiscal year. The statement of cash flows reports cash and cash equivalent activities for the fiscal year resulting fi'om operating activities, capital and related financing activities, non-capital and related financing activities and investing activities. The net result of these activities added to the beginning of the year cash balance total to the cash and cash equivalent balance at the end of the cun-cnt fiscal year. P.42