Hist and Proj Operating Receipts FY 2011 2 17 2010 - DC Water

External Audit - FY 2008 marked our twelfth consecutive unqualified audit opinion on our audited financial statements, and the
eleventh consecutive year that the Comprehensive Annual Financial Report received the Certificate of Achievement for Excellence in
Financial Reporting from the Government Finance Officers Association (GFOA). We have submitted application for consideration for
a similar award for FY 2009. We also received the Distinguished Budget Presentation Award for our FY 2009 Budget document.
Cost of Service Study - A Cost of Service Study (COS) was conducted in FY 2009 in accordance with DC WASA policy. The study
reviewed revenue sufficiency, rate equity, analysis of alternative rate structures and miscellaneous charges. While the study
indicated that the existing retail rate structure scored well on most pricing objectives, several recommendations were made that have
been evaluated by DC WASA and are either included later within this proposal or will be studied further for future recommendations.
Insurance Review - In FY 2009, we successfully renewed all of our insurance coverage at essentially the same coverage and
terms, with slightly higher costs than last year. Our use of multiple, qualified brokers last year improved competition and rendered
favorable results in the cost of our property and associated insurance coverage. Total insurance costs for the 2009/2010 insurance
year including the additional terrorism charge and all broker fees are 4 percent higher than prior-year actual costs.
Rolling Owner-Controlled Insurance Program II (ROCIP II) - In FY 2004 and FY 2005, we implemented another "industry-best
practice" with our ROCIP program, under which DC WASA procures broad insurance coverage for most construction contractors.
The result is substantially higher insurance coverage levels for all contracts; the ability to qualify more small, LSDBE, MBEIWBE
contractors and subcontractors who may have trouble obtaining insurance at levels required by DC WASA; potential cost savings;
and implementation of a uniformly strong safety program for all DC WASA contractors. At the end of FY 2009, 68 projects, and 217
contractors had been enrolled in the ROCIP program (including most of the lead service line replacement contracts), and preliminary
savings estimates exceed $1 million. As of FY 2009, the dollar value for all ROCIP contracts totaled $595 million. Twenty-six of 58
prime contractors are MBE/LSDBE participants. Over the five-year program, DC WASA anticipates an estimated savings in the $4 to
$5 million range.
Given the success of the first ROCIP, DC WASA moved forward with a second ROCIP beginning October 15,2009. The ROCIP II is
a three year insurance program that will support $1.3 billion of planned construction completion. We anticipate similar results with
this new program.
Internal Audit - During FY 2009, Internal Audit Office set out to continue its focus for carrying out of its Annual Audit Plan as
approved by the Board's Audit Committee. The Office completed the following two reviews:
Budget Overview and Performance
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