Audited Financial Statements
Year Ending June 30, 2009

District passes annual financial audit with flying colors

Click here for entire report (PDF format; 1.8MB; 64 pages)

The independent CPA firm of Mayer, Hoffman McCann, CPA, expressed an unqualified opinion of the District’s financial statements for 2008-2009, as follows: "In our opinion, the financial statements … present fairly, in all material respects, the financial position of the District as of June 30, 2009, and the results of its operations and cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America."

The Directors of South Coast Water District unanimously approved the 2008-09 financial audit at the September 24, 2009 board meeting.

The 2008-2009 Audited Financial Statements:

(click the underlined links below to access specific sections of the PDF file)

Also included at the end of the document is Unaudited Supplementary Information related to the Joint Regional Water Supply System (JRWSS), which South Coast Water District operates and maintains under contract on behalf of 9 other cities/agencies, including our own District. The Joint Regional Water Supply System brings imported drinking water from Metropolitan’s Diemer Filtration Plant in Yorba Linda to retail water agencies and cities in South Orange County.

District financial condition improved from previous year

The financial condition of the District has improved from the previous year. Highlights below are from Management’s Discussion & Analysis:

Net Assets
(figures shown rounded to nearest hundred-thousand)

  • The District’s net assets increased by 1.5% or by $2.0 million -- to $137.9 million.
  • More than 70% of net assets (70.2%) are capital assets -- less any related debt.
  • The District reported capital assets of $118.7 million in fiscal year 2008/09 compared to $111 million in fiscal year 2007/08, an increase of 6.9% in assets -- net of accumulated depreciation.
  • 2008/09 expenditures in capital projects totaled $13.1 million.
  • The largest District projects completed last fiscal year are (1) the Dana Point 2C Reservoir Coating (2) the Pines Park Sewer Improvement (3) the Lift Station #8 Repairs/Improvements (4) Juanita Reservoir Area Valve Replacement and (5) the Laguna Sur Sewer Lining.
  • At June 30, 2009, the District had $24.9 million in current and long-term debt outstanding -- a net decrease of $1.2 million.

Revenues, Expenses, Changes in Net Assets
(figures rounded to nearest hundred-thousand)

  • Total revenues for 2008/09 decreased approximately 5.8% ($30.2 million compared to a prior year of $32.1 million.) The most significant change was the decrease of 58.8% ($1,192,745) in investment income. Investment income ended at $0.8 million compared to $2.0 million for the previous year.
  • Total expenses for 2008/09 increased approximately 1.7% ($28.2 million compared to a prior year of $27.7 million.) Significant cost drivers were the increase in transmission and distribution costs attributed to the increase in District-wide maintenance and the increase in the cost of producing recycled water.