WRD CAFR FINAL 2017

The Water Replenishment District of Southern California has embraced water conservation and
the use of recycled water for many years. Through coordination and planning with other local
and regional water suppliers, the District continues to engage in developing long-term solutions
to the various water supply challenges. These efforts are evidenced in the District’s participation
in regional conjunctive use programs as well as local groundwater storage and recovery projects.
It is through participation in these and other programs, such as the District’s Water Independence
Now (WIN) program, that will enable the District to continue to meet its long-term water supply
needs.
The WIN program is specifically designed to make use of local water supplies to become
completely independent of imported water from the Colorado River and the California State
Water Project. Prior to 1961/62, the West and Central Groundwater Basins received about 36%
of the replenishment water from storm water and 64% from imported water. Today, the demand
for imported water has dropped dramatically due to the many projects and cooperative
interagency programs WRD has helped develop. The increase in replenishment due to natural
recharge is a direct result of storm water capture projects which increases the ability to benefit
from local storm events. The WIN program will completely eliminate the need for imported
water by replacing the current imported water needs with recycled water. This will be
accomplished through completion of the Groundwater Reliability Improvement Program (GRIP)
and the use of 100% recycled water at the West Coast and Dominguez Gap Seawater Intrusion
Barrier Projects.
Source of economic data: Los Angeles County Profile; Los Angeles County Economic
Development Corporation.
Relevant Financial Policies
Internal Control Structure
District management is responsible for the establishment and maintenance of the internal control
structure that ensures that the assets of the District are protected from loss, theft, or misuse. The
internal control structure also ensures that adequate accounting data are compiled to allow for the
preparation of financial statements in conformity with generally accepted accounting principles.
The District’s internal control structure is designed to provide reasonable assurance that these
objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control
should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits
requires estimates and judgments by management.
Investment Policy
The Board of Directors annually adopts an investment policy that conforms to California State
law, District ordinance and resolutions, prudent money management, and the “prudent person”
standards. The Investment Policy’s objectives are safety, liquidity, and yield. District funds are
normally invested in the State Treasurer’s Local Agency Investment Fund, Certificates of
Deposit, Government Agency Obligations or other specifically authorized investments.
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