During a short emergency meeting Monday, the V.I. Water and Power Authority Board approved audits for Fiscal Years 2012 and 2013, which brings the utility up to date for the first time in years.
WAPA Executive Director Hugo Hodge Jr. explained Monday that this was the first time since 2006 that the authority has been "completely current" on its annual audit conducted by BDO USA – last year’s was late by about six months.
According to the numbers for FY13, which will be publicly released Tuesday, the electric system’s net position (assets subtracted from liabilities) decreased by $9.9 million, while current assets increased to $87.2 million due to increases in accounts receivable and fuel oil costs, but this sum was offset by cash decreases – $500,000 in general obligation notes and $1.3 million in supplies – from the water side.
The authority’s deferred fuel balance increased by $600,000 since, according to officials, the Levelized Energy Adjustment Clause (rate approved by the Public Services Commission did not allow WAPA to recover its fuel costs during the year.
The water system report shows a net position increase of 8 percent as a result of 2013 operations – total operating revenues increased by 9 percent due to $3.2 million in increases in water sales, which was offset by a decrease in fuel escalator revenues of $1.1 million. Operating and production expenses decreased by $2.1 million due to a $2.6 million drop in the production cost of water, along with increases of $300,000 in operation and maintenance expenses and $200,000 in customer expenses.
Officials said that the switch to reverse osmosis units, along with federal and local capital grant awards, went a long way toward improving the financial position of the water system.
Hodge said that the authority’s efforts to cut expenses helped WAPA "end up in the black" for FY13.
In other news, the board voted to extend the maturity date of its 2006 Series C Note water system working capital line of credit for one year, from Nov. 13, 2013, to Nov. 13, 2014.
The credit line with Banco Popular is for $1.875 million and was meant to help with operating and maintenance costs for the water and electric systems.
According to WAPA Chief Operating Officer Julio Rhymer, the extension will allow the authority to pay off the water system’s debt and restore the full line of credit, which will help the authority secure bonds for other system improvements.
To review the authority’s audit reports, visit www.viwapa.vi/News/FinancialReports.
Board members at Monday’s meeting included Gerald Groner, Juanita Young, Noel Loftus, Donald Francois and Cheryl Boynes-Jackson.
