The following revised AWWA Policy Statement on Management of Groundwater has been approved by the Technical and Educational Council for member comment. Comments on the policy statement will be reviewed by AWWA staff and forwarded to the Executive Committee if the comments are minor or referred back to the originating body if the comments are substantive. Policies forwarded to the Executive Committee will be reviewed for approval and final action. Financing, Accounting, and Rates The American Water Works Association (AWWA) believes that the public can best be provided water, wastewater, reclaimed water, and stormwater utility services by self-sustaining enterprises adequately financed with rates and charges based on sound utility accounting, management and financial principles. Utilities should implement policies and practices that support the long-term financial integrity of the utility and its ability to provide quality service to customers. Utilities should follow the generally accepted national accounting principles of their country and adopt a standard uniform system of accounts, modified as necessary to meet the requirements of legislative, judicial, or regulatory bodies. Internal controls should be adequate to ensure that the financial statements present fairly and consistently, in all material respects, the financial position, results of operations, and cash flows of the utility. In addition to having good internal controls, financially strong utilities should also have management controls to guide and strategically align decisions and resources. Revenues from service charges, user rates, capital charges, and other miscellaneous revenues should be sufficient to pay for annual operation and maintenance expenses, financing of capital costs, maintenance of working capital and required reserves, and achievement of defined financial performance metrics. Maintenance and capital costs should include the support of an asset management program that preserves utility assets at desired service levels. Rates should be designed to distribute the cost of service equitably among each type and class of service. Non-cost of service rate-setting practices that achieve public policy goals and utility objectives may be suitable in some situations. Utilities should provide information at least annually to customers, the financial community, and the general public about the financial condition of the utility and the revenues necessary to provide service and to maintain utility assets on a sustained basis. Utilities should account for and maintain their funds in separate accounts from other governmental or owning entity operations. Utility funds should not be diverted to uses unrelated to utility services. Reasonable taxes, payments in lieu of taxes, and payments for services rendered to the utility by a local government or other divisions of the owning entity may be included in the utility’s revenue requirements after taking into account the contribution, for example, for fire protection, or any other services furnished by the utility to the local government or to other divisions of the owning entity. Practices specified in this policy statement are consistent with all other pertinent AWWA policy statements. Adopted by the Board of Directors Jan. 25, 1965, revised Jan. 31, 1982, reaffirmed Jan. 25, 1987, revised Jan. 26, 1992, June 21, 1998, Jan. 16, 2005 and revised Jan. 17, 2010. Revised June 7, 2015. Submit Comments by August 10, 2019.