The American Water Works Association (AWWA) has released two publications that are designed to help water utilities with financial management and rate-setting. “Financial Management for Water Utilities: Principles of Finance, Accounting, and Management Controls” and the sixth edition of “Principles of Water Rates, Fees, and Charges (M1)” are now available.
“Financial Management for Water Utilities” offers expert guidance and AWWA-approved best practices for all areas of water utility financial management. The new resource was developed as a financial management tool to help water utility professionals build accurate and reliable budget projections; supply better budgeting information; strengthen internal controls; provide strategic planning information; and incorporate standardized financial measures. The publication also provides appendices on a CD-ROM with 282 additional pages of sample documents, including the complete NARUC Uniform System of Accounts for Class A Water Utilities, sample annual reports, interim financial reports, 10-K filing, and policy statements.
“Principles of Water Rates, Fees, and Charges (M1)” is designed to help utilities fully recover the cost of producing and delivering safe water, while charging different customer classes equitably, planning for capital improvements, and supporting community’s social, economic, political, and environmental concerns. The manual presents water rate structures, fees, and charges in common use
among water utilities, and it explains the advantages and disadvantages of each, including how various water rates and charges may affect customers and the utility.