State Codes and Statutes

State Codes and Statutes

Statutes > California > Wat > 60290-60292

SECTION 60290-60292

60290.  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 2001-02 fiscal year to reflect
percentage increases or decreases in the blended cost of water from
district supply sources. A minimum of 80 percent of the reserve shall
be for water purchases.

60291.  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.

60292.  (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
   (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
   (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.