BOARD AGENDA MEMORANDUM
Government Code ? 84308 Applies: Yes ? No ?
(If "YES" Complete Attachment A - Gov. Code ? 84308)
SUBJECT:
Title
Receive the Audit Report of the Water Utility Enterprise Funds for the Fiscal Year Ended June 30, 2023.
End
RECOMMENDATION:
Recommendation
Receive the audit report of the Water Utility Enterprise funds for the Fiscal Year ended June 30, 2023.
Body
SUMMARY:
In 2006, Santa Clara Valley Water District (Valley Water) began conducting an annual Water Utility Fund Audit to assess the reasonableness of the direct and indirect cost allocations between the North County and South County groundwater benefit zones. The audit was initiated to respond to water retailers' and constituents' inquiries on groundwater production charges.
As part of Valley Water's core water supply function, four groundwater benefit zones form the basis for establishing Valley Water's water charges. Water charges are set separately for each zone, reflecting Valley Water activities carried out in each.
In the North County, Zone W-2 encompasses the Santa Clara Valley groundwater basin north of Metcalf Road. It includes those groundwater producing facilities that benefit from recharge with local and imported water. In the South County, Zone W-5 overlays most of the Llagas Subbasin, Zone W-7 encompasses the Coyote Valley, and Zone W-8 encompasses areas in the foothills southeast of Uvas and Chesbro Reservoirs.
The report entitled "Water Utility Enterprise Funds of the Santa Clara Valley Water District - Annual Financial Report for the Fiscal Year Ended June 30, 2023," which encompasses the Water Utility Fund financial statements and independent auditor's opinion, is provided as Attachment 1.
The report is presented in the format prescribed under Generally Accepted Accounting Principles. The report and accompanying audit opinion indicate that there were no findings. In addition, Attachment 1 includes a Schedule of Revenues and Expenses by Zone, which, ...
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