The El Dorado Irrigation District Board of Directors on June 27 received and unanimously voted to file the 2010 annual audit. The audit report, prepared by Maze and Associates, Certified Public Accountants, reported no material discrepancies and states that the financial statements represent fairly the financial position of the district in all material respects as of Dec. 31, 2010.
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The audit was conducted in accordance with generally accepted auditing standards. The report contained five main parts: 1) independent auditor’s report, 2) management’s discussion and analysis, 3) basic financial statements, 4) notes to the basic financial statements, and 5) supplemental information. The full audit report may be viewed on the district’s Website at eid.org.
Maze and Associates principal Tim Krisch, CPA, said in closing, “Two of the key points I’d love for you to leave the room with are the district has once again received an unqualified opinion, meaning it’s a clean opinion, which is the highest level of assurance that we as auditors can provide or issue for an entity. That’s huge for any entity but certainly for the district this year.
“Secondly, there has been great progress made within internal controls. A year ago we had a material weakness, a significant deficiency, and what we call ‘other subject matter,’ which means it is not going to have a serious impact one way or another. In 2010 we had none of the above, so we could not even come up with a topic to disclose or elevate for improvement to the organization. So that, from our perspective, is outstanding.”
When asked by Director George Wheeldon whether he thought the district was in good financial shape, Krisch responded that he thinks the district is moving in the right direction from an audit perspective. “Obviously there are concerns that we have heard all morning about rates, supply and demand, and debt service, but from my perspective as a CPA and not as a ratepayer in this district, I am very encouraged about the direction that this district is moving.”
Director John Fraser asked Krisch to comment on the rate increases that the district imposed for 2010 and the necessity of the increases. “It was overdue as the revenue was not there to meet the debt covenants in 2009,” said Krisch. “It may have even been a year behind in the cycling, so it was definitely needed.”
Board President Harry Norris thanked Finance Director Mark Price and his staff for the job that they did on the audit.
In other business, the board
• Recognized the wastewater division staff for being awarded the “H.R. LaBounty Safety Program Certificates of Appreciation” from the Association of California Water Agencies–Joint Powers Insurance Authority for promoting safety in the workplace. Staff recognized and eliminated a significant fall hazard at the El Dorado Hills wastewater treatment facility.
“This was an ACWA-JPIA award and I really appreciate you making safety a No. 1 priority and coming up with good ways to remove hazards. Great job,” said General Manager Jim Abercrombie.
Director Wheeldon noted that this kind of concern for safety has reduced EID’s Worker’s Compensation cost by about $1.5 million over the last seven years.
“This is an example of how a $4,000 investment has kept costs down and saves a lot of money for our ratepayers,” said Wheeldon.
• Adopted a resolution approving the 2010 update to the Urban Water Management Plan. The UWMP serves as a long-range planning document for the district water supply through information about the existing water supply, projected water use, and district plans for providing a reliable, safe, high-quality, water supply into the future.
The Urban Water Management Plan Act requires each urban water supplier with more than 3,000 connections or supplying more than 3,000 acre-feet of water annually to adopt and submit a UWMP every five years to the California Department of Water Resources.
• Received an informational update on the 2011 Water Resources and Service Reliability Report. This report is updated annually to determine water supply, potential demand and meter availability within the district.
EID’s Engineering Director Brian Mueller reported that a large reduction in unit demands has been seen over the last two years, most likely due to wetter, cooler weather and increased conservation efforts by EID’s customers.
• Approved the award of an on-call contract to Psomas for the Hazel Creek campground restoration design not to exceed $69,500 and authorized a total project funding of $153,500. The project is 100 percent funded by a grant from the Sierra Nevada Conservancy.
• Awarded a professional services agreement to HDR Engineering Inc. in the amount of $114,600 for preparation of the Folsom Reservoir cold water pool management modeling and authorized $10,000 in staff time for a total funding request of $124,600.
• Approved capital improvement plan funding for recycled water system improvements and improvements at the Camino Heights wastewater treatment plant. The total request for both projects was $104,000.