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Chapter 5. District Reserves And Accounting of California Water Code >> Division 18. >> Part 5. >> Chapter 5.
The district may establish an annual reserve fund in an
amount not to exceed ten million dollars ($10,000,000) commencing
with the 2000-01 fiscal year. The maximum allowable reserve fund may
be adjusted annually commencing with the 2001-02 fiscal year to
reflect percentage increases or decreases in the blended cost of
water from district supply sources. Beginning in the 2019-20 fiscal
year, a minimum of 80 percent of the reserve shall be for water
purchases.
The limitation on the reserve established in Section 60290
does not apply to the unexpended balance of any appropriated funds in
a capital improvement project construction account established to
pay the cost of a project or projects under construction.
(a) The district shall order, review, and maintain on file
an independent, audited financial statement not later than 60 days
from the conclusion of the district's fiscal year. The independent
audited financial statement shall be prepared by a certified public
accountant or a public accountant, licensed by the California Board
of Accountancy. The independent audited financial statement shall be
consistent with standards provided in the "Standards for Audits of
Governmental Organizations, Programs, Activities, and Functions"
prepared by the Comptroller General of the United States. The
independent audited financial statement shall include all of the
following:
(1) The balances in all accounts established for the maintenance of the district's funds.
(2) A report describing the amount of district funds to be expended for any capital improvement project authorized to be constructed or funded by the district and a detailed description of the capital improvement project.
(3) A report detailing the source of funds to be expended on any authorized capital improvement project, and whether the source of funds is the water replenishment assessment levied in accordance with Part 6 (commencing with Section 60300).
(4) A report describing the propriety of the district's operating expenses.
(5) A summary of independent audited financial statement exceptions and management improvement recommendations.
(6) A description of correction or plan of correction shall be incorporated in the independent audited financial statement, describing the specific actions that are planned to be taken, or that have been taken, to correct the problem identified by the auditor. The descriptions of specific actions to be taken or that have been taken shall not solely consist of general comments such as "will implement," "accepted the recommendation," or "will discuss at a later date."
(b) Copies of the independent audited financial statements shall be submitted to the Governor, the Legislature, and the State Auditor on or before November 1 of each year.
(1) The balances in all accounts established for the maintenance of the district's funds.
(2) A report describing the amount of district funds to be expended for any capital improvement project authorized to be constructed or funded by the district and a detailed description of the capital improvement project.
(3) A report detailing the source of funds to be expended on any authorized capital improvement project, and whether the source of funds is the water replenishment assessment levied in accordance with Part 6 (commencing with Section 60300).
(4) A report describing the propriety of the district's operating expenses.
(5) A summary of independent audited financial statement exceptions and management improvement recommendations.
(6) A description of correction or plan of correction shall be incorporated in the independent audited financial statement, describing the specific actions that are planned to be taken, or that have been taken, to correct the problem identified by the auditor. The descriptions of specific actions to be taken or that have been taken shall not solely consist of general comments such as "will implement," "accepted the recommendation," or "will discuss at a later date."
(b) Copies of the independent audited financial statements shall be submitted to the Governor, the Legislature, and the State Auditor on or before November 1 of each year.
