Borrego Water District Audit Accepted
Last updated 3/7/2022 at 1:57pm
At the February 22, meeting, the Borrego Water District Board accepted the audit for FY 2021 – 22. The Independent Auditing Firm of Leaf and Cole performed a review of transactions involving revenues, expenditures/expenses, loans, transfers, leasing arrangements, and guarantees, and amounts receivable from or payable to related parties. The audits were conducted in accordance with standards generally accepted in the United States of America and the State Controller’s Minimum Audit Requirements for California Special Districts. Those standards require the Auditors to plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
During the fiscal year ended June 30, 2021 and 2020, the following events impacted, or have the potential to impact, the finances of the District.
Capital assets increased $1,722,862 at June 30, 2021 from June 30, 2020, which included improvements to Production Well #2, Pipeline Phase 2 and the gravity main La Casa Del Zorro.
During FY 2020, the District received $232,398 from the California Department of Water Resources (DWR) Proposition One Severely Disadvantaged Community (SDAC) grant for Sustainable Groundwater Management Act (SDAC) Groundwater Sustainability Plan (GSP) development.
Total operating revenues increased $128,100 principally in water sales and sewer service charges.
Total operating expenses increased $450,771 as a result of administrative costs related to the groundwater basin under the stipulated agreement including consulting, pumping, and an air quality study.
Non-operating expenses exceeded non-operating revenues as property taxes and investment income were exceeded by interest expense.
Cash and cash equivalents decreased to $6,336,015 at June 30, 2021 from $7,882,456 at June 30, 2020. Proceeds from the Installment Sale agreement were drawn down as needed to fund capital projects. Bond proceeds of $63,620 to fund future capital projects remains on-hand at June 30, 2021 down from $1,986,766 at June 30, 2020.
BWD will begin the 2022 – 23 budget process in March.