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 		Financial Statements
June 30, 2005
(With Accountants' Report Thereon)

Devens Enterprise Commission
 

DEVENS ENTERPRISE COMMISSION
MANAGEMENT'S DISCUSSION AND ANALYSIS
REQUIRED SUPPLEMENTARY INFORMATION
JUNE 30, 2005

As management of the Devens Enterprise Commission, we offer readers of these financial statements this narrative overview and analysis of the financial activities of the Devens Enterprise Commission for the fiscal year ended June 30, 2005.

Financial Highlights

  • The assets of the Devens Enterprise Commission exceeded its liabilities at the close of the most recent fiscal year by $322,672 (net assets).
  • The Commission's total net assets decreased by $46,782. The decrease was the result of the continuing trend of expenditures outpacing permit and fee revenues. It is anticipated that a new source of revenue (taxes) and a minimum cash reserve guarantee by MassDevelopment will strengthen our financial position.
  • At the end of the current fiscal year, the balance in the unrestricted retained earnings account was $313,743, or 103.6 percent of total expenses.

Overview of the Financial Statements

The discussion and analysis are intended to serve as an introduction of the Devens Enterprise Commission' basic financial statements.

Proprietary funds. The Devens Enterprise Commission maintains one proprietary (enterprise) fund type. The Devens Enterprise Commission was established to expedite and regulate the orderly conversion and redevelopment of Fort Devens to non military uses in compliance with the Devens Reuse Plan.

Financial Analysis

Net Assests

Net assets may serve over time as a useful indicator of government's financial position. The following table reflects the condensed net assets.

Net Assets
June 30, 2005
   Business-type Activities
   20052004
Current and Other Assets$342,187387,779
Capital Assets8,9294,774
   Total Assets$351,116$392,553
Current Liabilities24,82820,807
Noncurrent Liabilities3,6162,292
   Total Liabilities28,44423,099
Net Assets: 
Invested in Capital Assets net of Related Debt8,9294,774
Unrestricted313,743364,680
   Total Net Assets
   		$322,672
              		$369,454
              


The net assets of Devens Enterprise Commission decreased by $46,782 or 13%.

Changes in Net Assets

The following condensed financial information was derived from the Statement of Revenues, Expenses, and Changes in Fund Net Assets. It reflects how the entity's net assets have changed during the fiscal year.

   Business-type Activities
Revenues20052004
Program Revenues:

   Permits and Other Fees

$191,121107,598
   Taxes57,406-
   Miscellaneous2,575175
  Earnings on Investment4,9745,685
   Total Revenues256,076113,458
Expenses

   Personnel

135,023153,095
   Non Personnel164,790195,586
  Depreciation3,0455,069
  Total Expenses302,858353,750
   Increase (Decrease) in Net Assets
   		$ (46,782)
              		$ (240,292)
              

 

Business-type Activities

When the Devens Enterprise Commission began, the Commonwealth of Massachusetts provided grant revenues to help fund operations. In fiscal year 2005, the Commission provided grant revenues to help fund operations. In fiscal year 2005, the Commission began receiving 2% of all Devens related tax revenue received by the Massachusetts Development Finance Agency (MassDevelopment). In addition to the tax revenues, MassDevelopment has "guaranteed" to pay the Commission any sum required to keep cash reserves at $250,000. Other revenue is received from EcoStar membership fees, and various permits and fees. In the current year, as well as last year, expenses exceeded revenues. However, the Board of Commissioners believe that the addition of tax revenues and the guarantee from MassDevelopment will make the Commission a viable operation.

Financial Analysis of the Commission's Funds

Proprietary Fund

Enterprise Fund - The June 30, 2005 year-end net assets of the Commission were $46,782 less than the prior year's net assets. In fiscal year 2004, the net assets decreased by $240,292.

The following table reflects the trend in all the components of net assets for the past three years.

Fiscal YearTotal Net AssetsInvested in Capital Assets Net of Related DebtUnrestricted
2005$322,672$8,929$313,743
2004$369,454$       -$369,454
2003$609,746$9,843$599,903

 

Capital Asset and Debt Administration

Capital assets. The Devens Enterprise Commission's investment in capital assets as of June 30, 2005, amount to $8,929 (net of accumulated depreciation). The investment in capital assets includes office equipment, a web page and an Eco Star manual.

Capital assets (net of accumulated depreciation/amortization) are detailed as follows:

Capital Assets at June 30, 2005
(Net of Depreciation)
   Business-type Activities
 20052004
Office Equipment$2,929$4,774
Web Page--
EcoStar Manual6,000   -   
   Total
   		$8,929
            		$4,774
            

Debt

Currently, the Commission does not have any long term or short term debt.

Fiscal Year 2006 Budget

The Commission's fiscal year 2006 budget will be funded from its operating revenues, earnings on investments and approximately $60,000 in revenues from MassDevelopment.

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