Burnet County Emergency Services District No. 6...

Burnet County Emergency Services District No. 6Financial StatementsFor the Year Ended September 30, 2013

Taber & Burnett, P.C.A Professional Corporation

Certified Public Accountants

Burnet County Emergency Services District No. 6Table of Contents September 30, 2013

Page

Management’s Discussion and Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Independent Auditors’ Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Statement of Net Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Balance Sheet - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Statement of Revenues, Expenditures and Changes inFund Balance - Governmental Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Reconciliation of the Statement of Revenues, Expenditures, andChanges in Fund Balance - Governmental Funds to the Statement of Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Required Supplementary Information Budgetary Comparison Schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

MANAGEMENT’S DISCUSSION AND ANALYSISREQUIRED SUPPLEMENTARY INFORMATION

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Burnet County Emergency Services District No. 6Management’s Discussion and Analysis September 30, 2013

As management of the Burnet County Emergency Services District No. 6 (the District), we arepleased to offer readers of the District’s financial statements this narrative overview and analysisof the District’s financial activities for the fiscal year ended September 30, 2013. We encouragereaders to consider it in conjunction with the additional information presented in theaccompanying basic financial statements and the notes to the financial statements.

Financial Statements

The net position of the District increased by $612,557 as a result of the current year’soperations. Net position at year end consisted of invested in capital assets, net of related debtof $490,391 and an unrestricted net position of $118,748 for total net position of $609,139.Total revenues from all sources were $707,183. This represents an increase of $707,183 dueto the first year of property tax collections and contributions from the Volunteer FireDepartment.Total costs of all programs were $94,626. This represents an increase of $91,208 dueprimarily to new public safety expenses.As of September 30, 2013, the District’s governmental fund reported an ending fund balanceof $118,748, an increase of $117,301.

Using this Annual Report

This annual report presents the following three components of the financial statements:

1. Government-wide financial statements provide information for the District as a whole.2. Fund financial statements provide detailed information for the District’s significant funds.3. Notes to the financial statements provide additional information that is essential to

understanding the government-wide and fund financial statements.

This report also contains other supplementary information in addition to the basic financialstatements themselves. This information includes a management’s discussion and analysis aswell as a budgetary comparison schedule.

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Burnet County Emergency Services District No. 6Management’s Discussion and Analysis (Continued) September 30, 2013

Government-Wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overviewof the District’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all of the assets and liabilities of theDistrict. The difference between assets and liabilities is reported as net position. Over time,increases or decreases in net position may serve as a useful indicator of whether the financialposition of the District is improving or deteriorating.

The Statement of Activities presents information on how the District’s net position changedduring the most recent fiscal year. This statement is presented using the accrual basis ofaccounting, which means that all of the current year’s revenues and expenses are taken intoaccount regardless of when the cash is received or paid.

Both the Statement of Net Position and the Statement of Activities present information for thefollowing:

Governmental activities–This includes all of the District’s emergency protection serviceswhich are primarily supported by property taxes.

The government-wide financial statements begin on page 9. The following is a summary of netassets as of September 30, 2013:

Table 1Net Position

Governmental Activities 2013 2012

Current assets and other assets $ 118,748 $ 3,279Capital assets, net 533,169 135

Total assets 651,917 3,414

Current liabilities 20,912 6,832Other liabilities 21,866 -

Total liabilities 42,778 6,832

Net position:Invested in capital assets,

net of related debt 490,391 135Unrestricted deficit 118,748 (3,553)

Total net position $ 609,139 $ (3,418)

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The following table is a summary of changes in net position:

Table 2Changes in Net Position

Governmental Activities 2013 2012

Revenues:Program revenues:

Charges for services $ - $ - Operating grants and contributions 480,390 - Capital grants and contributions - -

General revenues:Property taxes 226,793 -

Total revenues 707,183 -

Expenses:General government 14,699 3,418Public safety 79,927 -

Total expenses 94,626 3,418

Increase in net assets 612,557 (3,418)Net position - October 1 (3,418) - Net position - September 30 $ 609,139 $ (3,418)

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that havebeen segregated for specific activities or objectives. The District, like other state and localgovernments, uses fund accounting to ensure and demonstrate compliance with finance-relatedlegal requirements.

The fund financial statements provide detailed information about the District’s significant funds -not the District as a whole. The District’s funds fall into one category - governmental funds.

The focus of the District’s governmental fund is to provide information on near-term inflows,outflows, and balances of spendable resources. Such information is useful in assessing theDistrict’s financing requirements. In particular, unassigned fund balance may serve as a usefulmeasure of government’s net resources available for spending at the end of the fiscal period.

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The governmental funds statements provide a detailed short-term view of the governmentoperations and the basic services it provides, and are reported on the modified accrual basis ofaccounting which focuses on available spendable resources. This allows the reader to evaluatethe District’s short-term financing requirements. Both the governmental fund Balance Sheet andthe governmental fund Statement of Revenues, Expenditures, and Changes in Fund Balanceprovide a reconciliation to the government-wide financial statements.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the dataprovided in the government-wide and fund financial statements. The notes to the financialstatements can be found on pages 14 through 23 of this report.

General Fund Budgetary Highlights

The District Commissioners did not amend the budget during the year ended September 30,2013.

Actual results on a budgetary basis were 50 percent less than budgeted expenditures due to thefirst year of operations. The District’s overall actual revenue was 5 percent more than budgeteddue mainly to unexpected tax collections.

Capital Assets

The District’s investment in capital assets for its governmental activities as of September 30,2013, amounts to $533,169 (net of accumulated depreciation). This investment in capital assetsincludes computers, machinery, equipment, vehicles, and buildings.

Capital AssetsGovernmental Activities

(net of depreciation)

2013 2012Furniture and Fixtures $ 1,194 $ 135Vehicles Equipment 74,881 - Building and Improvements 395,146 - Land 61,948 -

$ 533,169 $ 135

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This year’s major additions included:Brush Truck $ 85,000Computer 1,279Fire Department Building 460,500

$ 546,779

Additional information on the District’s capital assets can be found in Note 4 on page 21 of thisreport.

Debt Administration

As of September 30, 2013, the District was obligated on the following debt:

Outstanding Debt at Year End

Governmental 9/30/13 9/30/12 Activities Total Total

Note Payable $ 42,778 $ 42,778 $ 5,000Total $ 42,778 $ 42,778 $ 5,000

During the year, the District assumed a loan of $65,000 to purchase a new brush truck. Additional information on the District’s non-current liabilities can be found in Note 5 beginningon page 21 of this report. Economic Factors and Next Year’s Budgets and Rates

The District’s tax revenues are expected to continue to grow with the steady population growth. These additional funds will be used for funding of the Volunteer Fire Department as needed.

Contacting the District’s Financial Management

This financial report is designed to provide a general overview of the District’s finances and todemonstrate the District’s accountability for the money it receives from the citizens of the BurnetCounty Emergency Services District No. 6. If you have any questions about this report or needfurther information, contact the Burnet County Emergency Services District No. 6, P.O. Box 685,Marble Falls, TX 78654.

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Taber & Burnett, P.C.A Professional Corporation P.O. Box 1519, 412 Buchanan Drive, Burnet, Texas 78611Certified Public Accountants 512/756-4904; Fax: 512/756-4227

INDEPENDENT AUDITORS’ REPORT

To The CommissionersBurnet County Emergency Services District No. 6

We have audited the accompanying financial statements of the governmental activities and eachmajor fund of the Burnet County Emergency Services District No. 6 (District), as of and for theyear ended September 30, 2013, which collectively comprise the District’s basic financialstatements as listed in the table of contents.

Management’s Responsibility for the Financial Statements

The District’s management is responsible for the preparation and fair presentation of thesefinancial statements in accordance with accounting principles generally accepted in the UnitedStates of America; this includes the design, implementation, and maintenance of internal controlrelevant to the preparation and fair presentation of financial statements that are free from materialmisstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the basic financial statements are free from materialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the basic financial statements. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the District’s preparation and fair presentation of the basicfinancial statements in order to design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion of the effectiveness of the entity’s internalcontrol. Accordingly, we express no such opinion. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of significant accountingestimates made by management, as well as evaluating the overall presentation of the basicfinancial statements.

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.

Opinion

In our opinion, the basic financial statements referred to above present fairly, in all materialrespects, the financial position of the Burnet County Emergency Services District No. 6 as ofSeptember 30, 2013, and the results of its operations for the year then ended in conformity withaccounting principles generally accepted in the United States of America.

Other Matters

Required Supplementary Information Accounting principles generally accepted in the United States of America require that themanagement’s discussion and analysis and budgetary comparison schedule on pages 2 through 7and 25 be presented to supplement the basic financial statements. Such information, althoughnot a part of the basic financial statements, is required by the Governmental AccountingStandards Board, who considers it to be an essential part of financial reporting for placing thebasic financial statements in an appropriate operational, economic, or historical context. Thesupplementary information is the responsibility of management. We have applied certain limitedprocedures to the required supplementary information in accordance with auditing standardsgenerally accepted in the United States of America, which consisted of inquiries of managementabout the methods of preparing the information and comparing the information for consistencywith management’s responses to our inquiries, the basic financial statements, and otherknowledge we obtained during our audit of the basic financial statements. We do not express anopinion or provide any assurance on the information because the limited procedures do notprovide us with sufficient evidence to express an opinion or provide any assurance.

Taber & Burnett, P.C.

Burnet, TexasMay 9, 2014

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Burnet County Emergency Services District No. 6Statement of Net Position As of September 30, 2013

Primary Government Governmental Activities Total

Assets

Cash and cash equivalents $ 118,748 $ 118,748Capital assets, net 533,169 533,169

Total assets 651,917 651,917

Liabilities

Due within one year 20,912 20,912Due in greater than one year 21,866 21,866

Total liabilities 42,778 42,778

Net Position

Invested in capital assets, net of related debt 490,391 490,391Unrestricted deficit 118,748 118,748

Total Net Position $ 609,139 $ 609,139

The accompanying notes are an integral part of the financial statements

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Burnet County Emergency Services District No. 6Statement of Activities For the Year Ended September 30, 2013

Net(Expense) Revenue and

Program Revenues Changes in Net Assets

Operating Capital Primary Government Functions/Programs Expenses Services Contributions Contributions Activities Total

Primary government:Governmental activities:

General government $ 14,699 $ - $ - $ - $ (14,699) $ (14,699)Public safety 79,927 - - 480,390 400,463 400,463

Total net (expense) revenue forgovernmental activities andthe primary government $ 94,626 $ - $ - $ 480,390 385,764 385,764

General revenues:Taxes:

Property taxes 226,793 226,793

Total general revenues 226,793 226,793

Change in net position 612,557 612,557

Net Position, Beginning of Year (3,418) (3,418)

Net Position, End of Year $ 609,139 $ 609,139

The accompanying notes are an integral part of the financial statements.

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Burnet County Emergency Services District No. 6Balance Sheet - Governmental Funds As of September 30, 2013

General Total Fund Governmental Funds

Assets

Cash $ 118,748 $ 118,748Taxes receivable 5,445 5,445

Total Assets 124,193 124,193

Liabilities

Deferred revenue 5,445 5,445

Total Liabilities 5,445 5,445

Fund Balance

Unassigned 118,748 118,748

Total Fund Balance 118,748 118,748

Total Liabilities and Fund Balance $ 124,193

Amounts reported for governmental activitiesin the Statement of Net Position are different because:

Capital assets used in governmental activities are not current financialresources and therefore are not reported in the governmental fundsbalance sheet. (See Note 4) 533,169

Long-term liabilities are not due and payable in the current year andtherefore are not reported as liabilities in the governmental funds balancesheet. (See Note 5) (42,778)

Net Position of Governmental Activities $ 609,139


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Burnet County Emergency Services District No. 6Statement of Revenues, Expenditures, and For the Year Ended September 30, 2013Changes in Fund Balance - Governmental Funds

General Total Fund Governmental Funds

RevenuesProperty taxes $ 226,793 $ 226,793

Total Revenues 226,793 226,793

ExpendituresContinuing education 2,851 2,851Dues and subscriptions 635 635Fuel 6,470 6,470Insurance 17,637 17,637Interest 805 805Legal and professional 10,097 10,097Office and administration 1,117 1,117Rent 1,200 1,200Repairs and maintenance 6,874 6,874Supplies 14,635 14,635Training 4,758 4,758Uniforms 13,802 13,802

Total Expenditures 80,881 80,881

Excess (Deficiencies) of Revenues Over(Under) Expenditures 145,912 145,912

Other Financing Sources (Uses):Capital outlay (546,779) (546,779)Debt payments (27,222) (27,222)Loan proceeds 65,000 65,000Volunteer Fire Department contribution 480,390 480,390

Total Other Financing Sources (Uses) (28,611) (28,611)

Excess (Deficiencies) of Revenues and OtherSources Over (Under) Expenditures and Other (Uses) 117,301 117,301

Fund Balance, Beginning of Year 1,447 1,447

Fund Balance, End of Year $ 118,748 $ 118,748


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Burnet County Emergency Services District No. 6Reconciliation of the Statement of Revenues, Expenditures, and For the Year Ended September 30, 2013Changes in Fund Balance - Governmental Funds to the Statementof Activities

Net Change in Fund Balance-Governmental Funds $ 117,301

Amounts reported for governmental activitiesin the Statement of Activities are different because:

Governmental funds report capital outlays as expenditures.However, in the Statement of Activities the cost of those assets isallocated over their estimated useful lives as depreciation expense.This is the net effect of these differences in the treatment of capitaloutlays and related items. (See Note 4) 533,034

The issuance of long-term debt provides current financial resources togovernmental funds, while the repayment of the principal of long-term debtconsumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. This amount is the net effectof these differences in the treatment of long-term debt and related items. (See Note 5) (37,778)

Change in Net Position of Governmental Activities $ 612,557


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Burnet County Emergency Services District No. 6Notes to the Financial Statements September 30, 2013

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Reporting Entity

Burnet County Emergency Services District No. 6 (the District) was created by election held onNovember 22, 2011. The District operates under Article III, Section 48-e of the TexasConstitution and Chapter 775 of the Texas Health and Safety Code and is run by a Board ofCommissioners appointed by the Burnet County Commissioners Court. The District’s majoractivities include providing emergency services to the residents of the district.

As required by generally accepted accounting principles, the financial statements of the reportingentity include those of the District (the primary government) and its component units. Inevaluating how to define the District for financial reporting purposes, management hasconsidered all potential component units. The decision to include a potential component unit inthe reporting entity is made by applying the criteria set forth in generally accepted accountingprinciples. The basic, but not the only, criterion for including a potential component unit withinthe reporting entity is the governing body’s ability to exercise oversight responsibility. The mostsignificant indication of this ability is financial interdependency. Other indications of the abilityto exercise oversight responsibility include, but are not limited to, the selection of governingauthority, the designation of management, the ability to significantly influence operations, andaccountability for fiscal matters. The other criterion used to evaluate potential component unitsfor inclusion or exclusion from the reporting entity is the existence of special financingrelationships, regardless of whether the District is able to exercise oversight responsibilities. TheDistrict had no component units for the year ended September 30, 2013.

Management’s Discussion and Analysis

GASB Statement No. 34 requires that financial statements be accompanied by a narrativeintroduction and analytical overview of the government’s financial activities in the form of“management’s discussion and analysis” (MD&A). This analysis is similar to analysis theprivate sector provides in their annual reports.

Government-Wide Financial Statements

The reporting model includes financial statements prepared using full accrual accounting for allof the District’s activities. This approach includes not just current assets and liabilities (such ascash and accounts payable) but also capital assets and long-term liabilities (such as buildings and infrastructure, including bridges and roads, and general obligation debt). Accrual accountingalso reports all of the revenues and cost of providing services each year, not just those received orpaid in the current year or soon thereafter.

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Statement of Net Position

The Schedule of Net Position is designed to display the financial position of the primarygovernment (governmental activities) and its discretely presented component units, if any. Governments will report all capital assets, including infrastructure, in the government-wideStatement of Net Position and will report depreciation expense - the cost of “using up” capitalassets - in the Statement of Activities. The net position of a government will be broken downinto three categories - invested in capital assets, net of related debt; restricted; and unrestricted.

Statement of Activities

The government-wide statement of activities reports expenses and revenues in a format thatfocuses on the cost of each of the District’s functions. The expense of individual functions iscompared to the revenues generated directly by the function (for instance, through user charges orintergovernmental grants).

Fund Financial Statements

Fund financial statements are provided for the governmental funds.

General Fund

The General Fund is the principal fund of the District which accounts for all financialtransactions not accounted for in other funds. The District had no other funds for the year endedSeptember 30, 2013.

Fund Balance Classification

The District follows GASB No. 54, Fund Balance Reporting and Governmental Fund TypeDefinitions. In the fund financial statements, governmental funds report the followingclassifications of fund balance:

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• Nonspendable - includes amounts that cannot be spent because they are either not spendable inform or are legally or contractually required to be maintained intact.

• Restricted - includes amounts restricted by external sources (creditors, laws of othergovernments, etc.) or by constitutional provision or enabling legislation.

• Committed - includes amounts that can only be used for specific purposes. Committed fundbalance is reported pursuant to ordinances passed by the Board, the Districts highest level ofdecision making authority. Commitments may be modified or rescinded only throughordinances approved by the District’s Board.

• Assigned - includes amounts that the District intends to use for a specific purpose, but do notmeet the definition of restricted or committed fund balance.

• Unassigned - includes amounts that have not been assigned to other funds or restricted,committed or assigned to a specific purpose within the General Fund. The District reports allamounts that meet the unrestricted General Fund Balance Policy as unassigned.

When an expenditure is incurred for purposes for which both restricted and unrestricted fundbalance is available, the District considers restricted funds to have been spent first. When anexpenditure is incurred for which committed, assigned, or unassigned fund balances areavailable, the District considers amounts to have been spent first out of committed funds, thenassigned funds, and finally unassigned funds, as needed.

In fiscal year 2012, the District adopted a minimum fund balance policy. The policy requires theunassigned fund balance for future fiscal year ends to be at least equal to 20 percent of the totalbudget.

Budgetary Comparison Schedules

Demonstrating compliance with the adopted budget is an important component of agovernment’s accountability to the public. Many citizens participate in one way or another in theprocess of establishing the annual operating budgets of state and local governments, and have akeen interest in following the actual financial progress of their governments over the course ofthe year. Many governments revise their original budgets over the course of the year for a varietyof reasons. Under the GASB 34 reporting model, governments are required to provide theDistrict’s original budget with the comparison of final budget and actual results.

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The budget is adopted by the Commissioners prior to the beginning of the fiscal year. Amendments are made during the year on approval by the Commissioners.

Basis of Presentation

The accounting and reporting policies of the District relating to the accompanying financialstatements conform to generally accepted accounting principles as applicable to governmentalunits. Generally accepted accounting principles for governmental units include those principlesprescribed by the Governmental Accounting Standards Board (GASB), the Financial AccountingStandards Board (FASB), and appropriate pronouncements of the American Institute of CertifiedPublic Accountants (AICPA).

Government-Wide and Fund Accounting

The basic financial statements include both government-wide (based on the District as a whole)and fund financial statements. Both the government-wide and fund financial statements (withinthe basic financial statements) categorize primary activities as either governmental or business-type. As of September 30, 2013, the District had no business-type activities.

In the government-wide Statement of Net Position, the governmental column is to be presentedon a consolidated basis, and is reflected, on a full accrual, economic resource basis, whichincorporates long-term assets and receivables as well as long-term debt and obligations.

The government-wide Statement of Activities reflects both the gross and net cost per functionalcategory (public safety), which are otherwise being supported by general government revenues(property taxes, certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related programrevenues, operating and capital grants, and contributions. The program revenues must be directlyassociated with the function (public safety). The operating grants include operating-specific anddiscretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. The District does not allocate indirect expenses.

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Amounts reported as program revenues include (1) charges to customers or applicants for goods,services or privileges provided, (2) operating grants and contributions, and (3) capital grants andcontributions, including special assessments. Internally dedicated resources are reported asgeneral revenues rather than as program revenues. Likewise, general revenues include all taxes.

In the fund financial statements, financial transactions of the District are organized on the basisof funds, each of which is considered a separate accounting entity. The operations of each fundare accounted for with a separate set of self-balancing accounts that comprise its assets,liabilities, fund equity, and revenues and expenditures. Government resources are allocated to,and accounted for, in individual funds based upon the purposes for which they are to be spentand the means by which spending activities are controlled.

The governmental fund financial statements are presented on a current financial resource andmodified accrual basis of accounting. This is the manner in which these funds are normallybudgeted. Since the governmental fund statements are presented on a different measurementfocus and basis of accounting than the government-wide statements’ governmental column, areconciliation is presented which briefly explains the adjustment necessary to reconcile fundsbased on fund financial statements with the governmental column of the government-widepresentation.

The focus of the reporting model is on the District as a whole and the fund financial statements,including the major individual funds of the governmental category. Each presentation providesvaluable information that can be analyzed and compared (between years and betweengovernments) to enhance the usefulness of the information.

Basis of Accounting

Basis of accounting refers to the method by which revenues and expenditures are recognized inthe accounts and reported in the financial statements. Basis of accounting relates to the timing ofthe measurements made, regardless of the measurement focus applied.

The government-wide statement of net position and statement of activities, are accounted for on aflow of economic resources measurement focus. With this measurement focus, all assets and allliabilities associated with the operation of these activities are included on the statement of netposition.

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All revenue and expenditure recognition for governmental funds are accounted for using themodified accrual basis of accounting. Only current assets and current liabilities are generallyincluded on their balance sheets. Their reported fund balance (net current assets) is considered ameasure of “available spendable resources.” Governmental fund operating statements presentincreases (revenues and other financing sources) and decreases (expenditures and other financinguses) in net current assets. The District’s revenues are recognized when they become measurableand available as current assets. Available means collectible within the current period or as soonenough thereafter to be used to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end ofthe current fiscal period. Penalties and interest, and miscellaneous revenues are recorded whenreceived in cash because they are generally not measurable until actually received. Expendituresare generally recognized under the modified accrual basis of accounting when the related liabilityis incurred.

Estimates

The preparation of financial statements in conformity with generally accepted accountingprinciples requires management to make estimates and assumptions that affect the reportedamounts of assets and liabilities and disclosure of contingent assets and liabilities at the date ofthe financial statements and the reported amounts of revenues and expenditures during thereporting period. Actual results could differ from those estimates.

Capital Assets

Capital outlays are recorded as expenditures of the General Fund and as assets in thegovernment-wide financial statements of the District. Depreciation is recorded on general fixedassets on a government-wide basis. All fixed assets are valued at historical cost or estimatedhistorical cost if actual cost was not available. Donated fixed assets are valued at their estimatedfair market value on the date donated. Depreciation is computed using the straight line method.

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Maintenance, repairs, and minor equipment are charged to operations when incurred. Expenditures that materially change capacities or extend useful lives are capitalized. Upon saleor retirement of land, buildings, and equipment, the cost and related accumulated depreciation, ifapplicable, are eliminated from the respective accounts and any resulting gain or loss is includedin the results of operations.

Estimated useful lives for depreciable assets are as follows:

Furniture and Fixtures 5 yearsVehicles and Equipment 7 yearsBuilding and Improvement 39 years

NOTE 2 - PROPERTY TAXES

The District’s property tax is levied each October 1 on the assessed value listed as of the previousJanuary 1 for all real property located in the District. The tax levy for October, 2012 was$224,891.

The tax assessment of October 1, 2012 sets the tax levy at $0.08611 per $100 of assessedvaluation at 100 percent of market value.

Delinquent property taxes estimated to be the collectible within the next fiscal year arerecognized as revenues. Other delinquent property taxes receivable at year end that are deemedto be ultimately collectible are recorded as deferred revenues.

NOTE 3 - DEPOSITS, SECURITIES AND INVESTMENTS

As of September 30, 2013, cash deposits were with a depository bank, and these balancesapproximated fair value. All of the District’s balances are insured by the FDIC.

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NOTE 4 - CHANGES IN CAPITAL ASSETS

Changes in general fixed assets during the year ended September 30, 2013, were as follows:

Balance Balance October 1, September 30, 2012 Increases Decreases 2013

Capital Assets Not Being DepreciatedLand $ - $ 61,948 $ - $ 61,948

Other Capital AssetsFurniture and fixtures 140 1,279 - 1,419Vehicles and equipment - 85,000 - 85,000Building and improvements - 398,552 - 398,552

Total Other Capital Assets 140 484,831 - 484,971Less accumulated depreciation (5) (13,745) - (13,750)

Other Capital Assets, Net 135 471,086 - 471,221

Total Capital Assets, Net ofDepreciation $ 135 $ 533,034 $ - $ 533,169

Current year depreciation expense of $13,745 was charged to public safety expense.

NOTE 5 - CHANGES IN NONCURRENT LIABILITIES

The following is a summary of noncurrent liability transactions during the year ended September30, 2013:

Balance Balance October 1, September 30, 2012 Additions Payments 2013

Note payable $ 5,000 $ 65,000 $ 27,222 $ 42,778

Total $ 5,000 $ 65,000 $ 27,222 $ 42,778

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NOTE 5 - CHANGES IN NONCURRENT LIABILITIES (Continued)Principal

BalancePayee and Terms

Northstar Bank dated November 2012, payable in annual installmentsof $22,864 with interest at 4.5 percent due February, 2015. $ 42,778

Total non-current liabilities 42,778Less current portion (20,912)

Total Long-Term Debt $ 21,866

Annual payments required to amortize all long-term debt outstanding as of September 30, 2013including interest payments, are as follows:

Year EndingSeptember 30, Principal Interest Total 2014 $ 20,912 $ 1,952 $ 22,864 2015 21,866 998 22,864

$ 42,778 $ 2,950 $ 45,728

NOTE 6 - COMMITMENTS

Effective January 1, 2012, the District entered into an agreement with the Marble Falls VolunteerFire Department. This entity agreed to provide emergency services to all persons and propertywithin the Emergency Services District, including response to life-threatening emergencies andrescue calls by making available adequate volunteers and administrative assistance.

Amounts to be paid to the entities shall be disbursed at the discretion of the Commissioners andmay include expenses for operations and other expenditures approved by the District formaintaining emergency services within the District. During the fiscal year ended September 30,2013 the District reimbursed expenses to the Volunteer Dire Department in the amount of$60,980.

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NOTE 7 - SUBSEQUENT EVENTS

In December 2013, the District assumed a loan of $65,000 to help fund a purchase of a new firetruck costing $87,978. Also in February 2014, the District assumed a loan of $200,000 to pay offthe loan on the volunteer fire department building donated to the District in fiscal year 2013.

Other than referenced above, the District did not have any subsequent events through May 9,2014, which is the date the financial statements were available to be issued for events requiringrecording or disclosure in the financial statements for the fiscal year ended September 30, 2013.

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REQUIRED SUPPLEMENTARY INFORMATION

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Burnet County Emergency Services District No. 6Budgetary Comparison Schedule For the Year Ended September 30, 2013

General Fund Variance with Final Budget

Budget Actual Amounts PositiveOriginal Final Budgetary Basis (Negative)

RevenuesProperty taxes $ 215,040 $ 215,040 $ 226,793 $ 11,753

Total Revenues 215,040 215,040 226,793 11,753

ExpendituresContinuing education - - 2,851 (2,851)Dues and subscriptions 1,000 1,000 635 365

Fuel 12,000 12,000 6,470 5,530Insurance 18,000 18,000 17,637 363Interest - - 805 (805)Legal and professional 18,680 18,680 10,097 8,583Office and administration 2,000 2,000 1,117 883Rent 2,000 2,000 1,200 800Repairs and maintenance 30,000 30,000 6,874 23,126Supplies 37,001 37,001 14,635 22,366Training 10,000 10,000 4,758 5,242Uniforms 31,000 31,000 13,802 17,198

Total Expenditures 161,681 161,681 80,881 80,800

Excess (Deficiencies) of Revenues Over(Under) Expenditures 53,359 53,359 145,912 92,553

Other Financing Sources (Uses):Capital outlay - - (546,779) (546,779)Debt payments - - (27,222) (27,222)Loan proceeds - - 65,000 65,000Volunteer Fire Department contributions 20,000 20,000 480,390 460,390

Total Other Financing Sources (Uses) 20,000 20,000 (28,611) (48,611)

Excess (Deficiencies) of Revenues and OtherSources Over Expenditures and Other (Uses) $ 73,359 $ 73,359 117,301 $ 43,942

Fund Balance, Beginning of Year 1,447

Fund Balance, End of Year $ 118,748

Burnet County Emergency Services District No. 6...

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Transcript of Burnet County Emergency Services District No. 6...