WRD CAFR FINAL 2017

Water Replenishment District of Southern California
Notes to Financial Statements
Years ended June 30, 2017 and 2016
NOTE 9
DEFERRED INFLOWS OF RESOURCES
In accordance with GASB Statement No. 62, Codification of Accounting and
Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and
AICPA Pronouncements, for rate–regulated activities the District defers the
recognition of revenues until the related costs or charges associated with the rates
assessed are incurred. The balance of Deferred Revenue – Replenishment
Assessments of $4.2 million and $16.0 million as of June 30, 2017 and 2016,
respectively, pertains to assessments that were deferred until the related costs of
water supply management are incurred. Pursuant to GASB Statement No. 65, Items
Previously Reported as Assets and Liabilities, these amounts are reported as
deferred inflows of resources in the Statement of Net Position.
NOTE 10
NET POSITION - NET INVESTMENT IN CAPITAL ASSETS
The calculation of net position - balance of net investment in capital assets at June
30 is as follows:
2017 2016
Capital assets, net $ 195,214,183 $ 141,795,238
Long-term debt:
Current portion (2,350,000) (1,655,000)
Noncurrent portion (176,553,498) (169,914,874)
Unspent debt proceeds 33,015,303 75,168,581
Net position - net investment in capital assets $ 49,325,988 $ 45,393,945
NOTE 11
DEFERRED COMPENSATION SAVINGS PLAN
For the benefit of its employees, the District participates in IRS Code Section 457
and 401(a) Deferred Compensation Programs (Programs). The purpose of these
Programs is to provide deferred compensation for District employees that elect to
participate in the Programs. Generally, eligible employees may defer receipt of a
portion of their salary until termination, retirement, death or unforeseeable
emergency. Until the funds are paid or otherwise made available to the employee,
the employee is not obligated to report the deferred salary for income tax purposes.
29