Management’s Discussion and Analysis (Unaudited)
This section of the Los Angeles County Children and Families First – Proposition 10 Commission, (aka First 5 LA) comprehensive annual financial report presents management’s discussion and analysis of the Commission’s financial performance during the year ended June 30, 2009. Please read in conjunction with the Commission’s basic financial statements and accompanying notes.
¾ The Commission received $137,735,698 from the State compared to $143,428,264 received in the prior fiscal year, a decrease of $5,692,566 or (4 %).
¾ The Commission had expenses totaling $171,191,151 in FY 2008-09, which is an increase of $31,604,612 or 23% compared to $139,586,539 in FY 2007-08.
¾ The Commission’s total liabilities and net assets increased from $933,676,588 in FY 2007-08 to $935,197,866 in FY 2008-09 by $1,521,278 or 0%.
¾ The Commission’s liabilities increased from $33,884,579 in FY 2007-08 to $40,304,696 in FY 2008- 09 by $6,420,117 or 19%.
Overview of the Financial Statements
This comprehensive annual financial report consists of two parts, this management’s discussion and analysis and the basic financial statements, including government-wide financial statements, fund financial statements and notes to the basic financial statements. The Commission’s financial statements offer key, high-level financial information about its activities.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the Commission’s finances, in a manner similar to a private-sector business. These statements provide both long- term and short-term information about the Commission’s overall financial status.
The statement of net assets includes information on all of the Commission’s assets and liabilities with the difference between assets and liabilities reported as net assets. Changes in net assets may serve as a useful indicator of whether the financial position of the Commission is improving or deteriorating.
The statement of activities presents information showing how the Commission’s net assets changed during the fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fund accounting is used to ensure and demonstrate compliance with finance-related legal requirements. All of the Commission’s activities are accounted for in the general fund.
Governmental fund financial statements focus on near-term inflows and outflows of spendable resources and on balances of spendable resources available at the end of the year.
While a nine-member Board of Commissioners governs the Commission, the Commission was created by and ultimately is under the authority of the Los Angeles County Board of Supervisors, in accordance with