City of Orinda Management’s Discussion and Analysis (MDA) June 30, 2021 INTRODUCTION As management of the City of Orinda (the City), we offer readers this discussion and analysis of the City’s financial performance for the fiscal year (FY) ended June 30, 2021. Please read this overview in conjunction with the letter of transmittal and the accompanying basic financial statements which follow. OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the City's basic financial statements, which are comprised of three components:
Government-wide Financial Statements - These include the Statement of Net Position and Statement of Activities. These statements provide information about the activities of the City as a whole and about the overall financial condition of the City in a manner similar to a private-sector business.
Fund Financial Statements - These statements provide additional information about the City's major funds, including how services were financed including fund balances available for financing future projects.
Notes to the Financial Statements - The notes provide additional detail that is essential to a full understanding of the information provided in the Government-wide and Fund Financial Statements.
GOVERNMENT-WIDE FINANCIAL STATEMENTS - DESCRIPTION These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All current year's revenues and expenses are accounted for regardless of when the cash is paid or received. These statements report the City's net position and changes to the net position during the Fiscal Year. Net position - the difference between assets and liabilities - is one way to measure the City's financial position. Over time, increases or decreases in the net position are among indicators used to assess whether the financial condition of the City is improving or deteriorating. The Statement of Activities and Changes in Net Position presents information showing how the City’s net assets for primary governmental activities have changed during the fiscal year. For the City of Orinda, governmental activities include: general government, police services, public works and engineering, parks, recreation and library, planning, and interest on bonds payable.
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