2012 CAFR - Encina Wastewater Authority

ENCINA WASTEWATER AUTHORITY____________________________________________________________________________________A PUBLIC AGENCY6200 Avenida EncinasCarlsbad, CA 92011-1095Telephone (760) 438-3941Facsimile (760) 431-7493March 27, 2013The Board of DirectorsEncina Wastewater Authority6200 Avenida EncinasCarlsbad, CA 92011-1095We are pleased and proud to submit the Comprehensive Annual Financial Report (Report) of the EncinaWastewater Authority (EWA) for the Fiscal Year ended June 30, 2012. EWA staff remains committed toreach and maintain the highest possible standards in financial reporting now and in the future.EWA’s Certified Public Accounting firm of Leaf & Cole, LLP and accounting staff prepared the data in thisReport. White Nelson Diehl Evans, LLP independently audited the financial statements. Nonetheless,EWA bears the responsibility for the accuracy of all data presented in this Report. We, EWA’s chiefexecutive and financial officers, assume the responsibility for the Report’s completeness and fairness ofpresentation, including all disclosures. We affirm that, to the best of our knowledge and belief,information in this Report provides an accurate and fair representation of EWA’s financial position andthe status of its operations during the fiscal year ended June 30, 2012. We believe that this Reportcontains all information and disclosures needed to clearly understand EWA’s Fiscal Year 2012 financialactivities.White Nelson Diehl Evans, LLP has issued an unqualified (“clean”) opinion on EWA’s financial statementsfor the fiscal year ended June 30, 2012. The independent auditors report is located at the front of thefinancial section of this report.Management’s discussion and analysis (MD&A) immediately follows the independent auditors reportand provides a narrative introduction, overview, and analysis of the basic financial statements. MD&Acomplement this letter of transmittal and should be read in conjunction with it.BackgroundOn July 13, 1961 the City of Carlsbad and Vista Sanitation District entered into a Basic Agreement tocreate a joint powers authority (JPA) for the purpose of acquiring and constructing a joint sewer system.In 1963, the City of Vista incorporated and assumed membership in the JPA. Between 1964 and 1971,