TOWN OF OBERLIN, LOUISIANA
Management's Discussion and Analysis June 30, 2013 Within this section of the Town of Oberlin, Louisiana's annual financial report, the Town's management is pleased to provide this narrative discussion and analysis of the financial activities of the Town for the fiscal year ended June 30, 2013. The Town's financial performance is discussed and analyzed within the context of the accompanying financial statements and disclosures following this section. FINANCIAL HIGHLIGHTS • The Town's assets exceeded its liabilities by $5,763,552 (net position) for the fiscal year reported. • Total revenues of $1,550,677 were exceeded by total expenses of $1,854,167, which resulted in a current year deficit of $303,490. In comparison, for the previous year ended June 30, 2012, the Town's total revenues of $1,745,357 were exceeded by total expenses of $1,954,730, yielding a deficit of $209,373. • Total net position are comprised of the following: (1) Capital assets, net of related debt, of $5,528,197 include property and equipment, net of accumulated depreciation, and reduced for outstanding debt related to the purchase or construction of capital assets. In comparison, as of June 30, 2012, the Town's net capital assets were $5,801,925. (2) For the fiscal years ended June 30, 2013 and 2012, respectively, net position of $195,357 and $171,685 were restricted by constraints imposed from outside the Town such as debt covenants, grantors, laws, or regulations. (3) Unrestricted net position, representing the portion of net position available to maintain the Town's continuing obligations to citizens and creditors, amounted to $39,998 and $93,432 for the fiscal years ended June 30, 2013 and 2012, respectively. • The Town's governmental funds reported total ending fund balance of $38,449 this year. This compares to the prior year ending fund balance of $77,110, reflecting a decrease of $38,661 during the current year. For the prior year ended June 30, 2012, a decrease of $111,277 was reported in the total ending fund balance. • At the end of the current fiscal year, unassigned fund balance for the General Fund was $(9,036), or (1%) of total General Fund expenditures and (2%) of total General Fund revenues including other financing sources. In comparison, for the fiscal year ended June 30, 2012, unassigned fund balance for the General Fund was $8,618, or 1% of total General Fund expenditures and
of total General Fund revenues including other financing sources. These levels are currently dangerously low. • Overall, the Town has experienced a weakening financial position especially from a liquidity standpoint. The Town is working to improve on its financial position. The above financial highlights are explained in more detail in the financial analysis section of this document. OVERVIEW OF FINANCIAL STATEMENTS This Management's Discussion and Analysis document introduces the Town's basic financial statements, which include: (1) government-wide financial statements, (2) fund financial statements, and (3) notes to the basic financial statements. The Town also includes in this report additional information to supplement the basic financial statements. Comparative data is presented when available.