Financial Reporting &

Management Reports

Copyright 2011 Community Resource Group, Inc.No part of this presentation may be copied or reproduced without

written consent from Community Resource Group, Inc.

SECTION 3

SECTION 3A

Preparing the Annual Management Report

(the Annual Budget)

All RUS borrowers are required

to submit annual management reports at least 30 days prior to the beginning of each new fiscal year.

Report may be submitted on Form RD 442-2

Annual Management Report

SECTION 3A: Preparing the Annual Management Report

CHECKLIST

Annual Management Report

Line-item budget for the new fiscal year

Projected cash-flow statement for the new fiscal year

Current schedule of water and sewer rates

Current list of members of the governing body

Any additional information that may be requested by your USDA RD servicing office

ANNUAL MANAGEMENT REPORTForm for the Line-Item Budget

ANNUAL MANAGEMENT REPORTForm for the Line-Item Budget

Sample Completed Form

ANNUAL MANAGEMENT REPORTForm for the Line-Item Budget Sample Completed Form Using Excel

Spreadsheet

ANNUAL MANAGEMENT REPORT RD 442-2, Schedule 2-Projected Cash Flow

ANNUAL MANAGEMENT REPORT RD 442-2, Schedule 2

Projected Cash Flow - Sample Completed Form

ANNUAL MANAGEMENT REPORTSample Projected Cash Flow

Using Excel Spreadsheet

SECTION 3B

Preparing Annual Financial Statements

Expenditures for the past year

Budget for the current year

Insurance coverage

Operational information

Bank balances

Accounts receivable

Net worth of your system

Financial trends (comparative data from previous vs. current year)

Data On The Report Should Include

SECTION 3B: Preparing Annual Financial Statements

The purpose of an Annual

Financial Statement is to provide a comprehensive

report to USDA RD on the financial

status of your system

Completed Statement of Budget, Income and Equity (RD 442-2, Schedule 1, Page 1)

Completed Supplemental Data Form (RD 442-2, Schedule 1, Page 2)

Completed Balance Sheet (RD 442-3)

Any additional information that may be requested by your USDA RD servicing office

Annual Financial Statement

Checklist

SECTION 3B: Preparing Annual Financial Statements

ANNUAL FINANCIAL STATEMENTSAnnual Income & Expense Statement

ANNUAL FINANCIAL STATEMENTSAnnual Income & Expense Statement

Sample Completed Form

ANNUAL FINANCIAL STATEMENTSAnnual Income & Expense Statement

Sample Completed Form Using Excel Spreadsheet

ANNUAL FINANCIAL STATEMENTSSupplemental Data FormRD 442-2 Schedule 1, Page 2

ANNUAL FINANCIAL STATEMENTSSupplemental Data Form -RD 442-2 Schedule

1, Page 2

Sample Completed Form

ANNUAL FINANCIAL STATEMENTSSupplemental Data Form -RD 442-2 Schedule

1, Page 2Sample Completed Form Using Excel

Spreadsheet

ANNUAL FINANCIAL STATEMENTSAnnual Balance Sheet - Rd 442-3

ANNUAL FINANCIAL STATEMENTSAnnual Balance Sheet - RD 442-3

Sample Completed Form

ANNUAL FINANCIAL STATEMENTSAnnual Balance Sheet - RD 442-3

Sample Completed Form Using Excel Spreadsheet

Quarterly Management

Reports

SECTION 3C

SECTION 3C: Quarterly Management Reports

Quarterly Management Reports are required for the first full year of operation for all new borrowers, or for borrowers experiencing financial or management difficulties.

The purpose of Quarterly Management Reports is to provide regular updates on how your budget and system operations are doing.

QUARTERLY MANAGEMENT REPORT

“Budget-to-Actual” - Sample Completed Form QUARTERLY MANAGEMENT REPORT

“Budget-to-Actual”

QUARTERLY MANAGEMENT REPORT“Budget-to-Actual”

Sample Completed Form Using Excel Spreadsheet

Quarterly Management Reports

Checklist

Completed Income and Expense Statement (a budget-to-actual comparison report) using RD 442-2, Schedule 1, Page 1

Any additional information that may be requested by your USDA/RD servicing office

SECTION 3C: Quarterly Management Reports

QUARTERLY MANAGEMENT REPORT“Budget-to-Actual”

QUARTERLY MANAGEMENT REPORT“Budget-to-Actual” – Sample Completed

Form

QUARTERLY MANAGEMENT REPORT“Budget-to-Actual”

Sample Completed Form Using Excel Spreadsheet