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VILLAGE OF GOWANDA, NEW YORK Management’s Discussion and Analysis May 31, 2025 As management of the Village of Gowanda, New York (the Village”), we offer readers of the Village’s financial statements this narrative overview and analysis: of the financial activities of the Village for the year ended May 31, 2025. This document should be read in conjunction with additional information that we have furnished in the Village’s financial statements which follow this narrative. Financial Highlights * At the close of the current fiscal year, the Village’s govern mental funds reported a combined ending fund balance of $1,508,832 a decrease of $1,739, 795 in compatison with the prior year amount of $3,248,627. This decrease is a result of expenditures exceeding revenues in the Capital Projects fund during fiscal year 2025 related to the Villages two large capital projects. : » At the end of the current fiscal year, unassigned fund balance for the General Fund was $1,163,094, or approximately 68 percent of total General Fund expendi tures, This compares with the prior year when the unassigned fund balance for the General Fund was $1,006,254, or approximately 52 percent of total General Fund expenditures. This total amount is available for spending at the Village’s discretion and constitutes approximately 63 percent and 69 percent of the General Fund’s total fund balance of $1,836,932 and $1,460,488 at May 31, 2025 and 2024 respectively. Overview of the Financial Statements This discussion and analysis provided here are intended to serve as an introduction to the Village’s basic financial statements. Basic financial statements are comprised of three components: 1) government-wide financial statements (not presented), 2) fund financial statements, and 3) notes to.the financial statements. This report also includes supplementary information intende d to furnish additional detail to support the basic financial statements themselves. For the year ended May 31, 2025, the Village has not included the government-wide financial statements within its financial stateme nts. This report also includes required supplementary information intended to furnish additional detail to support the financial statements themselves, Government-wide financial statements—The government-wide financial statements are desi gned to provide the reader with a broad overview of an entity’s. finances , similar in format to a financial statement ofa private-sector business. The statement of net position presents information on all of an entity’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in ‘net position may serve as a useful indicator of whether the financial position of the entity is improving or deteriorating. The statement of activities presents information showing how the entity’s net position changed during the mosi recent fiscal year. All changes in. net position are reporte d 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 the statement for some items that will only result in cash flows in future fiscal periods (e.g, uncollected taxes), . Both of the government-wide financial statements distinguish functions of the entity that are principally supported by taxes and intergovernmental- revenues (governmenta l activities) from other functions that are