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IID Board Approves 2019 Audit Report

By: Mario Conde, Reporter

The Imperial Irrigation District Board of Directors accepted the audited financial statements at their May 5 meeting.

The board had its regular May meeting where the board unanimously approved the audited report unanimously. Moss-Adams LLP, certified public accountants, completed the audit of IID’s financial statements for the year ending December 31, 2019.

During the fiscal year 2019, the Imperial Irrigation District’s operating revenues increased by $26.9 million from 2018 levels. The increase in revenues is attributable to the Water Department by $30.2 million, mainly due to an increase in water transfer revenue, Metropolitan Water District, and the Joint Power Authority mitigation revenues. In addition, the Energy Department had a decrease of $3.3 million, mainly due to a 4.23% volume reduction in energy sales offset by Energy Cost Adjustment.

Total operating expenses increased by $12.7 million from the fiscal year 2018. The Water Department is a key driver due to higher operating expenses by $16.3 million, mainly due to on-farm conservation, labor, and outside services. Energy department’s decrease of $13.5 million; is mainly due to lower operation and maintenance and general and administrative expenses of $17.7 million related to lower legal and medical contingency, canceled project, and other post-employment benefit expenses. This was offset by higher purchase power and fuel cost by a higher purchase power and fuel cost of $42.2 million, mainly due to lower surplus power and gas sales. In addition, both departments had combined increases in depreciation of $9.9 million.

The net effect of non-operating revenue and expenses, as well as capital contributions, resulted in an increase in the net population of $10.9 million. One added to the operating income of $40.6 million, the total net position increased by $51.5 million in the fiscal year 2019.

During the fiscal year 2018, the Imperial Irrigation District’s operating revenues decreased by $19.3 million. The decrease in revenue is attributable to the Water Department by $4 million, mainly due to lower Salton Sea fallowing and local entity mitigation program winding down and an offset by an increase in water transfer revenues.

In addition, the Energy Department had a decrease of $15.3 million from an Energy Cost Adjustment and lower Open Access Transmission Tariff study reimbursements. Total operating expenses decreased by $55.2 million. The Energy Department is a key financial driver with decreases on purchasing power and fuel cost, higher surplus power and gas sales and an auction of greenhouse allowances of $19.7 million; operation and maintenance, and general and administrative expenses of $4.5 million, mainly due to lower legal expenses, public benefit incentives and outside services offset with a minor salary increase.

Water Department’s decrease operation expenses of $34.9 million are mainly due to a decrease in the Salton Sea on-farm conservation and local entity program. In addition, both departments had a combined increase in depreciation of $3.9 million. The net effect of non-operating revenue and expenses, as well as capital contributions, resulted in an increase in net position of $22.3 million. Once added to the operating income of $26.4 million, the total net position increased by $48.6 million in the fiscal year 2018.

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