06 - MINUTES OF BOARDS, COMMISSIONS, AND COMMITTEES

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PARIS -LAMAR COUNTY HEALTH DISTRICT Notes to the Financial Statements September 30, 2o16 Organization and Summary of Significar+_Ac_ounting Policies A. Reporting Entity The Paris -Lamar County Health District (the District) is a governmental special - purpose district established July 19,1993. The District was organized exclusively for the purpose of benefiting and accomplishing public purposes of the City of Paris, Texas, and Lamar County, Texas by serving as a public health district primarily providing preventive medical treatment. Services provided include prenatal care; family planning; immunizations; care of nonemergency medical problems; screening and treatment of sexually transmitted diseases; the Women, Infant, and Children (WIC) nutrition program; and sanitary inspections. The business affairs are managed by a five - member board of directors. B. Basis of Presentation — Basic Financial Statements The Statement of Net Position presents all of the District's assets and liabilities with the difference between the two reported as "net position." Over time, increases or decreases in the District's net position may serve as a useful indicator of whether the financial position of the District is improving or deteriorating. This statement combines and consolidates current financial resources (short-term spendable resources) with capital assets. The Statement of Revenues, Expenses, and Changes in Net Position focuses on both the gross costs and the net costs of District activities which are supported mainly by Federal revenue and fee revenues. This approach is intended to summarize and simplify the user's analysis of costs of various services to the public. All of the current year's revenues and expenses are taken into account regardless of when cash is received or paid. The two statements above report the District's net position and changes in net position. The change in net position provides the reader a tool to assist in determining whether the District's financial health is improving or deteriorating. The reader will need to consider other nonfinancial factors such as economic conditions and facility conditions in arriving at their conclusion regarding the overall health of the District. The Statement of Cash Flows is presented on the direct method to illustrate the sources and uses of cash for operating activities of the District. The primary purpose of cash flow analysis is to provide relevant information about the cash receipts and cash payments of an entity during a period. The Statement of Cash Flows also may help users assess the District's ability to generate future net cash flows, to meet its obligations as they come due, and to determine its need for external financing. 9