WRD CAFR FINAL 2017

Water Replenishment District of Southern California
Management’s Discussion and Analysis (Unaudited)
June 30, 2017 and 2016
evaluate fiscal stability and credit worthiness. The final required financial statement is the Statement
of Cash Flows, which provides information about the District's cash receipts and cash payments
during the reporting period. The Statement of Cash Flows reports cash receipts, cash payments and
net changes in cash resulting from operations, investing, noncapital financing, and capital and
related financing activities.
The notes provide additional information that is essential to a full understanding of the data provided
in the basic financial statements. The notes to the basic financial statements can be found on pages
13 through 46.
Financial Analysis of the District
One of the most important questions asked about the District's finances is, "Is the District better off
or worse off as a result of this year's activities?" The Statement of Net Position and the Statement of
Revenues, Expenses and Changes in Net Position report information about the District in a way that
helps answer this question. These statements include all assets and liabilities using the accrual
basis of accounting, which is similar to the accounting used by most private sector companies. All of
the current year's revenues and expenses are taken into account regardless of when the cash is
received or paid.
These two statements report the District's net position and changes in them. One can think of the
District's net position - the difference between assets and liabilities - as a way to measure the
District's financial health, or financial position. Over time, increases or decreases in the District's net
position are one indicator of whether its financial health is improving or deteriorating. However, one
will need to consider other non-financial factors such as changes in economic conditions, population
growth and new or changed government legislation, such as changes in Federal and State water
quality standards.
Statement of Net Position
Condensed Statement of Net Position
June 30,
Change
June 30,
Change
2017 2016 Amount % 2015 Amount %
Current assets $ 68,511,957 $ 68,486,791 $ 25,166 0.0 $ 63,977,006 $ 4,509,785 7.0
Restricted assets 33,015,303 75,168,581 (42,153,278) -56.1 28,444,554 46,724,027 164.3
Other noncurrent assets 662,998 1,028,682 (365,684) -35.5 1,233,800 (205,118) -16.6
Capital assets, net 195,214,183 141,795,238 53,418,945 37.7 116,886,598 24,908,640 21.3
Total assets 297,404,441 286,479,292 10,925,149 3.8 210,541,958 75,937,334 36.1
Deferred outflows of resources 11,937,505 14,780,986 (2,843,481) 1,291.3 1,062,375 13,718,611 100.0
Current liabilities 19,783,146 22,157,323 (2,374,177) -10.7 17,195,906 4,961,417 28.9
Noncurrent liabilities 181,113,233 173,627,515 7,485,718 4.3 99,388,078 74,239,437 74.7
Total liabilities 200,896,379 195,784,838 5,111,541 2.6 116,583,984 79,200,854 67.9
Deferred inflows of resources 4,463,889 17,752,739 (13,288,850) -74.9 15,002,805 2,749,934 18.3
Net position
Net investment in capital assets 49,325,988 45,393,945 3,932,043 8.7 47,030,300 (1,636,355) -3.5
Unrestricted 54,655,690 42,328,756 12,326,934 29.1 32,987,244 9,341,512 28.3
Total net position $ 103,981,678 $ 87,722,701 $ 16,258,977 18.5 $ 80,017,544 $ 7,705,157 9.6
As noted earlier, over time, changes in net position may serve as a useful indicator of a
government's financial condition. In the case of the District, assets of the District exceeded liabilities
by $103,981,678 and $87,722,701 as of June 30, 2017 and 2016, respectively.
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