Budget Message / Highlights - Metropolitan Water Reclamation ...

METROPOLITAN WATER RECLAMATION DISTRICT OF GREATER CHICAGO
Financial Policies,
Objectives
and
Accomplishments
District financial reports are prepared in compliance with GAAP to fulfill the District's duty to be publicly accountable while
allowing users to assess that accountability.
District financial reports are designed to assist users in evaluating the District's ongoing operations and assess the level of
services provided and our ability to meet obligations as they become due.
The annual audit performed by independent certified public accountants assures compliance with the District's financial
objectives. In addition to meeting the requirements as set forth in the State of Illinois Compiled Statutes, Chapter 70, 2605/5.12,
the audit will also ensure compliance with the Federal Single Audit Act regulations in OMB Circular A-133.
The Internal Audit unit assists the Executive Director by furnishing independent and objective analyses, appraisals,
recommendations, and pertinent comments concerning the activities reviewed.
The District has addressed Government Accounting Standards Board (GASB) pronouncement #45, requiring reporting of the
future liability for maintaining Other Post Employment Benefits (OPEB), primarily retiree health insurance benefits. Following
Board policy, the District established an irrevocable trust for funding the future liability with the following operating
parameters:
• 50 percent funded level target,
• 50 years to reach funding level,
• $10 million funding in each of the first 5 years beginning in 2007 from the Corporate Fund,
• Subsequent funding will be based on a percentage of payroll,
• An initial investment mixture of 50 percent equities and 50 percent bonds with a maximum limit of 65 percent equities
that allows for investment growth.
Financial Accomplishments
The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial
Reporting to the District for its Comprehensive Annual Financial Report (CAFR) for the Year ending December 31, 2006. This
is the 32nd consecutive year that the District has received this prestigious award. The entire Comprehensive Annual Financial
Report for the year ending December 31, 2007 is available on the Internet at www.mwrd.org.
The Audit of the 2007 financial statements, completed on April 28, 2008, includes an unqualified opinion.
2009 BUDGET
In 2007, the Internal Audit unit completed seventeen audits and fifteen will be completed in 2008. Twelve audits will be
scheduled in 2009.
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