Water Loss Information
At a joint meeting of the Water and Wastewater Financing Board and the Utility Management Review Board on June 6, 2012, the Boards decided to reaffirm the October 7, 2010, decision to adopt the American Water Works Association (AWWA) water loss methodology for inclusion in any audited financial statements received by the Comptroller of the Treasury on or after January 1, 2013. The water loss methodology can be obtained from www.AWWA.org
At the June 6, 2012, meeting the following was adopted by the Boards:
I. Require that the AWWA Excel Spreadsheet (in the specific format created by utilizing the AWWA Free Water Audit Software) be submitted electronically in an Excel format. It is the intention of the Boards that the AWWA Excel spreadsheet be filed by the contracted auditor in Excel format at the same time the annual audited financial statements are filed. The Excel spreadsheet is not considered audited information, but only submitted simultaneously.
II. In accordance with TCA 68-221-1010(d)(1) and TCA 7-82-401(h)(1), failure to include the required schedule constitutes excessive water loss and…referral to the appropriate board.
THEREFORE, failure to include the AWWA schedule in audited financial statements received by the Comptroller of the Treasury on or after January 1, 2013, will result in the System being referred to the appropriate Board.
III. Further, utilities will be referred to the Boards based on:
A. Incomplete AWWA water audit submitted anytime on or after January 1, 2013;
B. For audits received by the Comptroller of the Treasury from 1/1/2015 to 12/31/2016 -Validity score of 70 or less or non-revenue water as a percent by cost of operating system of 25% or greater;
C. For audits received by the Comptroller of the Treasury from 1/1/2017 to 12/31/2018 - Validity score of 75 or less or non-revenue water as a percent by cost of operating system of 20% or greater;
D. For audits received by the Comptroller of the Treasury after 1/1/2019 with a Validity score of 80 or less or non-revenue water as a percent by cost of operating system of 20% or greater.
“Total annual cost of operating the water system” as used in the AWWA Free Water Audit Software is defined to include all costs for operation, maintenance, debt service (principal and interest) and depreciation. Remember this number is to include only expenses related to the WATER system – not the sewer system. The number can be obtained from the annual audited financial statements.
Failure to achieve the designated levels will result in a referral to the Board(s)
The requirements will be reviewed by the Boards annually to ensure the desired results are being achieved. The levels are subject to change by approval of the Board(s).