Reporting Requirements for Water and Wastewater Systems

Reporting Requirements for Reporting Requirements for Water and Wastewater Water and Wastewater

SystemsSystemsA presentation by

Rural Community Assistance Corporation.

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Prepared by Leslie R. Kryder

Socorro, New Mexico, December 16, 2010

Rural Community Assistance Corporation

Leslie R. Kryder 2

Rural Community Assistance Rural Community Assistance CorporationCorporation

Our mission is to provide technical assistance, training, and financing so rural communities achieve their goals and visions.

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The NetworkThe Network

Rural Community Assistance Partnership

800/321-7227 www.rcap.org

Western RCAP

Rural Community

Assistance Corporation

916/447-2854

www.rcac.org

Midwest RCAP

Midwest Assistance Program

952/758-4334

www.map-inc.org

Southern RCAP

Community Resource Group

479/443-2700

www.crg.org

Northeast RCAP

RCAP Solutions

800/488-1969

www.rcapsolutions.org

Great Lakes RCAP

WSOS Community

Action Commission

800/775-9767

www.glrcap.org

Southeast RCAP

Southeast Rural Community

Assistance Project

866/928-3731

www.southeastrcap.org

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This material is based upon work supported under a grant by the Utilities Programs, United States Department of Agriculture, and produced as part of the RCAP Technitrain Project.

Any opinions, findings, conclusions, or recommendations expressed in this material are solely the responsibility of the authors and do not necessarily represent the official views of the Rural Utilities Programs.

RCAC is an equal opportunity provider and employer.


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Today’s AgendaToday’s Agenda Describe the reporting

requirements incumbent upon water and wastewater systems to USDA-RD and several other agencies.

Create a customized due dates calendar for each attendee.


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HousekeepingHousekeepingSchedule & breaksQuestion parking lotPre-class and post-class self-

assessmentsA workshop evaluation

Lots of handouts!


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IntroductionsIntroductionsPresenters

◦ Linda Martinez◦ Leslie Kryder

The Class◦ Name & Affiliation◦ Size of your water

system◦ What made you want

to come today?◦ What’s your biggest

question?

RCAC

3150 Carlisle Blvd NE, Suite 208

Albuquerque, NM 87110

505 298 4511

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ApproachApproachLearning through interaction:

Ask questions!Share your experience and

knowledge with the group


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Reports to be covered . . .Reports to be covered . . . USDA-RD

◦ USDA-RD Financial management reports

◦ USDA-RD ARRA Project reporting

◦ Professional Audit (A-133)

Public Regulation Commission◦ Nonprofit Corporate

Report New Mexico Tax &

Revenue◦ Gross receipts Tax (CRS-

1)◦ Water Conservation Fee

State Engineer◦ Meter readings◦ Return flow credits◦ Proof of beneficial use

or application for extension

NM Environment Dept.◦ Consumer Confidence

Report◦ CCR Certification


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Topics covered for each reporting Topics covered for each reporting requirementrequirement

What to reportWhom to report toWhen to fileHow to fileCostResources – How to Get

HelpQuestions

REPORTS FOR USDA-REPORTS FOR USDA-RD LOAN AND GRANT RD LOAN AND GRANT RECIPIENTSRECIPIENTS

Reporting Requirements for Water and Wastewater Systems


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USDA-RD Financial USDA-RD Financial Management ReportsManagement ReportsWho must report

◦ Systems that have an outstanding loan with USDA-RD.

What to report◦ Operating budget◦ Projected cash flow◦ Statement of budget,

income, and equity (RD 442-2) or Profit and Loss

◦ Balance sheet (RD 442-3)

◦ Supplemental data

Report to◦ USDA-RD in

Albuquerque by email, fax, or mail

No filing fee When to file

◦ Quarterly for first year loan recipients

◦ Annually thereafter (FY)◦ Due 60 days after EoP *

If the system has both water and wastewater systems, the financial information must be reported separately for each.* EoP – End of Period


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Why would you want to file Why would you want to file these reports?these reports?

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Why would you want to file Why would you want to file these reports?these reports?Meet the legal requirements of

your loansImprove the management of the

system’s finances◦ Know if your cash flow is positive or

negative◦ Know where you are spending your

money

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USDA-RD Reporting - USDA-RD Reporting - SummarySummaryWhat you need to file:

◦ Budget or USDA-RD 442-7

◦ Profit and Loss or USDA-RD 442-2

◦ Balance Sheet or USDA-RD 442-3

◦ Supplemental Data Insurance coverage Water produced and water sold Rate schedule Past due balances And more . . .

Yes, you can use Quickbooks reports if your chart of accounts is correctly set up.

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USDA-RD ARRA ReportingUSDA-RD ARRA ReportingWho must report

◦ Systems with ARRA funding

What to report◦ Award info◦ Monies expended◦ Jobs created & retained◦ Buy American provisions◦ Sub-recipients

Report to◦ www.federalreporting.gov◦ May use Excel template

(preferred) or web page

When to file◦ Quarterly until all funds

have been spent◦ Due date varies by

quarter; usually about 10 calendar days after EoP.

No filing fee If the system has both

grants and loans, they must file separately for each.

Need active DUNS, CCR, and FRPIN. A common problem is an expired CCR #.

Contact USDA-RD with questions.

There are frequent webinars on filing requirements.


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AuditsAudits Audit are required according to

the State Auditor Rule. There is a new 7-tier financial

reporting schema. For more details, visit http://saonm.org/state-auditor-rule

For more information contact State Auditor Office 2540 Camino Edward Ortiz, Ste #

ASanta Fe, NM 87507 ◦ Telephone (505) 476-3800 ◦ Fax (505) 827-3512◦ www.osanm.org

7 Tiers of Financial Reporting

Tier 1 – Less than $10,000 in revenue

Tier 2 - > $10,000 <$50,000 in revenue

Tier 3 - < $50,000 in revenue and spends 50% or remainder of capital outlay award

Tier 4 - > $50,000 < $250,000 in revenue (no capital outlay expenditures)

Tier 5 - > $50,000 < $250,000 in revenue plus capital outlay expenditures

Tier 6 - > $250,000 < $500,000 in revenue

Tier 7 - > $500,000 in revenue


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Professional Audit (A-133)Professional Audit (A-133)Who must report

◦ Any system which has spent at least $500,000 during the year

◦ Often applies to systems as they implement USDA-RD funded projects

What to report◦ This is a professional

audit prepared by an outside firm that the system hires.

Report to ◦ A copy of the audit

goes to USDA-RD if the system has a USDA-RD loan.

Audits cost several thousands of dollars.

When to file◦ Due within 9 months of

EoP (FY) Requirements are

different for Tribes; contact USDA-RD for more info.


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Questions about USDA-Questions about USDA-related reporting related reporting requirements?requirements?

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Other ReportsOther ReportsPRC Nonprofit Corporate ReportNM Tax & Revenue:

Gross Receipts TaxWater Conservation Fee

Office of the State Engineer:Meter ReadingsReturn Flow CreditsProof of Beneficial Use or alternative

NMED:Consumer Confidence ReportCCR Certification


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PRC Nonprofit Corporate PRC Nonprofit Corporate ReportReportWho must report

◦ All public nonprofit water and wastewater systems

What to report◦ A brief statement of

the character of the affairs that the corporation is actually conducting.

◦ Names and addresses of the directors and officers of the corporation.

Report to◦ NM PRC Corporations

Bureau

Cost◦ $10 filing fee;

plus $10 if late.When to file

◦ Due 15 days after EoP (FY).


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NM Tax & Revenue: Gross NM Tax & Revenue: Gross Receipts TaxReceipts TaxWho must report


What to report◦ Gross receipts tax at

governmental rate (currently 5%)

Report to◦ NM Tax & Revenue◦ May file with state office

in Santa Fe or any District office

Cost◦ No filing fee, but there are

late charges and penalties for late filing.

When to file◦ Semi-annually, quarterly, or

monthly, depending on income level and filing status.

◦ Due by 25th of the month after EoP.

The system needs a CRS number, which can be obtained by filing Business Tax Registration Update form.

The system must file even if it had no income during the period.


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NM Tax & Revenue: NM Tax & Revenue: Water Conservation FeeWater Conservation FeeWho must report


What to report◦ Conservation fee is 3

cents ($.03) per thousand gallons produced.

Report to◦ NM Tax & Revenue◦ May file with state office

in Santa Fe or any District office

Cost◦ No filing fee, but there

are late charges and penalties for late filing.

When to file◦ Semi-annually, quarterly, or

monthly, depending on income level and filing status (it will be the same as your GRT due date).


If no water was produced, no report needs to be filed.

This is calculated based on the well or other source meter(s) on your system.


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Office of the State Engineer: Office of the State Engineer: Meter ReadingsMeter ReadingsWho must report

◦ All water and wastewater systems with permits

What to report◦ Report the current

meter reading on each source meter (well, spring, etc.) at EoP

Report to◦ NM OSE by email, fax,

or mail

No filing fee

When to file◦ Monthly, quarterly, or

annually, per letter of condition for water permit


Exercise care in reading the meter as some are in gallons and some in acre-feet; also some have multiplier zeroes on the end.


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Office of the State Engineer: Office of the State Engineer: Return Flow CreditReturn Flow CreditWho must report

◦ Systems with a return flow credit in their permit


meter reading on each wastewater discharge meter.


or mailNo filing fee

When to file◦ As stipulated on the

water permit.

Exercise care in reading the meter as some are in gallons and some in acre-feet; also some have multiplier zeroes on the end.

There’s no official form; may use the Meter Reading form and note “return flow credit” in the comments.


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Office of the State Engineer: Office of the State Engineer: Proof of Beneficial Use (aka Final Inspection Proof of Beneficial Use (aka Final Inspection and Report of Beneficial Use of Underground and Report of Beneficial Use of Underground Water)Water)Who must report

◦ All water and wastewater systems with a permit


annual water use of the system.


or mail

Cost◦ $25

When to file◦ This is filed one time,

when the system has begun to use its full permitted water right.

◦ Do not file this until you have begun to use your full permitted water right; instead file the Application for Extension of Time . . .

There is a corresponding form for surface water rights.


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Office of the State Engineer: Office of the State Engineer: Application for Extension of Time in Which to Application for Extension of Time in Which to Perfect an Application of Underground WaterPerfect an Application of Underground Water

Who must report◦ All water and

wastewater systems with a permit


annual water diversion and consumption of the system.


or mailCost

◦ $25

When to file◦ File for the first time

when you have begun to use your well or water source.

◦ File before the expiration of the current extension.

◦ Typical extension periods are 3 years and 1 year, at the OSE’s discretion.

File repeatedly until the system uses its full permitted water right—could be 20 or 30 years.

There is a corresponding form for surface water rights.


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New Mexico Environment Department: New Mexico Environment Department: Consumer Confidence ReportConsumer Confidence Report

Who must report◦ Every Community Water

System (CWS), i.e. every system that “has at least fifteen service connections or regularly serves an average of at least twenty-five individuals daily at least 60 days out of the year.”

What to report◦ Water system information◦ Source water assessment

information◦ Definitions of terms◦ Data on detected regulated

contaminants◦ Compliance with DWRs◦ Required educational

information

Report to◦ All water system

customersCost

◦ Your cost to prepare and distribute materials

When to report◦ Annually on or before

July 1.◦ CWSs that sell water to

other CWSs must provide this information to the water purchasers by April 1.


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New Mexico Environment Department: New Mexico Environment Department: CCR CertificationCCR Certification

Who must report◦ All CWSs

What to report◦ Certify that the CCR

was prepared and distributed by July 1.

Report to◦ NMED Drinking Water

Bureau

No filing feeWhen to report

◦ Annually on or before Oct 1.


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Why would you want to file Why would you want to file the CCR and CCR the CCR and CCR certification?certification?

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Why would you want to file Why would you want to file the CCR and CCR the CCR and CCR certification?certification?To make sure your water is safe

to drink.To assure your customers that

the water is safe to drink.

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About IRS Form 990About IRS Form 990Some mutual domestics have begun

filing IRS 990 Return of Organization Exempt From Income Tax.

However, it is an open question whether this is an actual requirement.

Bottom line: if you don’t already file this, don’t start; if you have filed before, don’t stop.

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Good RecordkeepingGood RecordkeepingWhy keep organized and

complete records?

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Reporting CalendarsReporting CalendarsWe’ll work on this as a group exercise.


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ExercisesExercisesPequeño Water Association

Reporting ScheduleYour System’s Reporting

Schedule


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Annual Tasks for Water and Annual Tasks for Water and Wastewater SystemsWastewater Systems

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Additional ResourcesAdditional ResourcesWhat are additional resources for

systems and associations?

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Documents

Reporting Requirements for Water and Wastewater Systems