12-12-2016 BPU RPT 08 - Laserfiche WebLink

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W A T E R E N E R C Y I RIVERSIDE PUBLIC UTILITIES WI& Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: DECEMBER 12, 2016 ITEM NO: 8 SUBJECT: RIVERSIDE PUBLIC UTILITIES 2016 FINANCIAL REPORT ISSUE: Receive and file the 2016 Riverside Public Utilities Financial Report for the fiscal year ending June 30, 2016. RECOMMENDATION: That the Board of Public Utilities receive and file the Riverside Public Utilities 2016 Financial Report. BACKGROUND: The financial report being presented outlines information about the operating performance and financial condition of Riverside Public Utilities (RPU) for the 2015 -16 Fiscal Year. An independent audit is performed each year on the year -end financial report. Our current auditors are Macias, Gini and O'Connell, LLP. For the fiscal year ended June 30, 2016, the auditors issued an unmodified opinion, which is considered a clean opinion and is the best type of report RPU can receive from its auditors. The year -end financial results for both the Electric and Water Utilities are presented below. Implementation of new accounting standard During the fiscal year ended June 30, 2016, RPU implemented Governmental Accounting Standards Board (GASB) Statement No. 72, Fair Value Measurement and Application. This new standard is intended to address accounting and financial reporting issues related to fair value measurements. The definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This statement provides guidance for determining fair value measurement for financial reporting purposes. It also provides guidance for applying fair value to certain investments and disclosures related to all fair value measurements. This standard requires additional disclosure information but had no material financial impact to the financial report.