2002 Comprehensive Annual Financial Report

Home Browse Search

As management of the City of South Bend, we offer readers of the City of South Bend's financial statements this narrative overview and analysis of the financial activities of the City of South Bend for the fiscal year ended December 31, 2002. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. This discussion will contain comparative analysis in future years when prior year information is available. This is the first year that the City has resented its financial statements under the new Governmental Accounting Standards BoardpNumber 34 reporting model. This new reporting model significantly changes the presentation of financial data as well as the way.this information is recorded. Due to these significant changes, the omission of comparative information was unavoidable. As with other sections of this financial report, the information contained within this MD&A should be considered only a part of a greater whole. The readers of this statement should take time to read and evaluate all sections of this report, including the footnotes and the other Required Supplemental Information ("RSI") that is provided in addition to this MD&A. Financial Highlights The assets of the City of South Bend exceeded its liabilities at December 31, 2002 by $186,911,387. Of this amount, unrestricted net assets of $54,338,577, may be used to meet the government's ongoing obligations to citizens and creditors. Total cost of all of the City's programs were $132.3 million. The fund balance increased in governmental funds by $11.4 million. The City of South Bend's total debt obligations increased by the net of $361,466. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of South Bend's basic financial statements. The City of South Bend's basic financial statements are comprised of three coinponents: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also includes other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of South Bend's finances, in a manner similar to aprivate-sector business. The statement of net assets. This statement reports all assets and liabilities of the City as of December 31, 2002. The difference between total assets and total liabilities is reported as "net assets." Increases in net assets generall indicate an improvement in financial position while decrease may indicate a deterioration of financial position. The statement of activities. This statement serves the purpose of the traditional income statement. It provides consolidated reporting of the results of all activities of the City for the year ended December 31, 2002. Changes m net assets are recorded in the period in which the underlying event takes place, which may differ from the period in which cash is received or disbursed. The Statement of Activities displays the expense of the City's various programs net of the related revenues, as well as a separate presentation of revenues available for general purposes.