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PIEDMONT AREA MENTAL HEALTH,
<br />DEVELOPMENTAL DISABILITIES AND SUBSTANCE ABUSE AUTHORITY
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />JUNE 30, 2006
<br />Budgetary Analysis
<br />Over the course of the year, the Authority revised the budget several times primarily due to increases
<br />in Medicaid revenue due to the waivers that were obtained as part of mental health reform.
<br />Capital Assets and Debt Administration
<br />At June 30, 2006 and 2005, the Authority had invested $3,139,216 and $3,297,211, respectively, in
<br />capital assets, net of accumulated depreciation, as shown in Table A-3.
<br />Table A-3
<br />Capital Assets
<br />June 30, 2006 and 2005
<br /> 2006 2005
<br />
<br />Land $ 224,497 $ 224,497
<br />Vehicles and Other Equipment 624,361 685,451
<br />Leasehold Improvements 353,091 386,609
<br />Buildings 1,937,267 2,000,654
<br />Total Capital Assets 3,139,218 $ 3,297, 11
<br />At June 30, 2006 and 2005, the Authority had $270,829 and $421,466 outstanding debt associated
<br />with these capital assets, respectively.
<br />Financial Analysis of the Authority's Funds
<br />As noted earlier, the Authority uses fund accounting to ensure and demonstrate compliance with
<br />finance-related legal requirements.
<br />The focus of the Authority's governmental fund is to provide information on near-term inflows, outflows,
<br />and balances of useable resources. Such information is useful in assessing the Authority's operating
<br />activity. Specifically, unreserved fund balance can be a useful measure of a government's net
<br />resources available for spending at the end of the fiscal year.
<br />The general fund is the chief operating fund of the Authority. At the end of the 2006 fiscal year,
<br />unreserved and undesignated;fund balance of the General Fund was $14,030,670 while the total fund
<br />balance was $29,633,836. As. a measure of the general fund's liquidity, it may be useful to compare
<br />both the unreserved fund balance and the total fund balance to total expenditures. Unreserved and
<br />undesignated fund balance represents 11.1% of total General Fund expenditures, while total fund
<br />balance represents 23.4% of that same amount at June 30, 2006.
<br />At June 30, 2006 the governmental fund of the Authority reported a combined fund balance of
<br />$29,633,836; an increase of 54.0% over 2005. The primary reason for this increase is favorable results
<br />of operations which included a full year of capitation payments under the Medicaid waiver.
<br />(7)
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