MANAGEMENT?’S DISCUSSION AND ANALYSIS
As management of the City of Nashua, New Hampshire (the City), we offer readers of the City of
Nashua’s financial statements this narrative overview and analysis of the financial activities of the
City for the fiscal year ended June 30, 2021.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an explanation of the basic financial statements.
The basic financial statements comprise three components: (1) government-wide financial
statements, (2) fund financial statements, and (3) notes to financial statements. This report contains
supplementary information in addition to the basic financial statements.
Government-Wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview
of the City’s finances in a manner similar to a private-sector business.
The Statement of Net Position presents information on all assets, liabilities, and deferred
outflows/inflows of resources, with the difference reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial position is
improving or deteriorating.
The Statement of Activities presents information showing how the City’s net position changed during
the most recent fiscal year. All changes in net position are reported as soon as the underlying event
giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and
expenses are reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
Both government-wide financial statements distinguish functions of the City that are principally
supported by taxes and intergovernmental revenues (governmental activities) from other functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business-type activities). The governmental activities of the City include general government,
public safety, public works, education, health and human services, culture and recreation, community
development, communications, and hydroelectric operations. The business-type activities of the City
include Wastewater and Solid Waste activities.
The government-wide financial statements include not only the City itself (known as the primary
government), but also legally separate entities for which the primary government is financially
accountable (known as component units). Pennichuck Corporation and the Nashua Airport
Authority are reported as a discretely presented governmental component units. Financial
information for Pennichuck Corporation and the Nashua Airport Authority is reported separately
from the financial information presented for the primary government.
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local governments,
uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
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