GWA: Revenue losses from leaks less than 50 percent

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GWA

Around 58 percent of the water that the Guam Waterworks Authority produces per year are wasted to non-revenue water loss, according to an FY2018 audit report from the Office of Public Accountability. The OPA report said GWA revenues are affected by leaks and unauthorized or unbilled consumption.

Miguel Bordallo, GWA general manager said the waterworks authority uses a different standard for measurement to account for non-revenue water. He said actual revenue loses from water leaks is at around 49 percent.

“The 58 percent non-revenue water, a portion of that is water that doesn’t get billed or metered for appropriate reasons. For example, when there is a main break and we have to flush the lines – that doesn’t necessarily get metered. It doesn’t show up as revenue. But does it mean that it’s wasted? It’s necessarily wasted as part of the maintenance activity but it’s not leakage,” Bordallo said in an interview on K57’s Patti Arroyo Show.

According to the OPA, the waterworks authority has expanded its water loss control program to include leak detection to help reduce non-revenue water. GWA is also currently pilot-testing satellite-based, leak detection, which uses advanced satellite imaging to detect potable water leaks within its service area.

Highlights of the audit report
  • GWA closed FY 2018 with an increase in net position of $24.8 million, due primarily to the $23.2 million increase in operating income;
  • GWA’s capital assets increased by $90.1 million in FY2018 because of the on-going major projects to address the 2011 federal court order and five-year capital improvement plan (CIP);
  • GWA’s outstanding long-term debt decreased by $9.7 million, from $515 million in FY 2017 to $505.3 million in FY2018;
  • Residential (48%), commercial (21%), and hotel (21%) sectors continue to account for 90 percent of water revenues. Residential water revenues significantly increased by $2.3 million.
Independent auditors Deloitte & Touche, LLP rendered unmodified “clean” opinions on GWA’s financial statements and compliance for all major federal programs. No findings on GWA’s federal funds were identified in FY2018.
For the third consecutive year, GWA qualified as a low-risk auditee.
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Jolene Toves
Jolene joined the PNC team in 2017, as a producer, co-anchor and investigative reporter covering law enforcement, courts and crimes. Notable coverage includes the Ehlert case, the Mark Torre Jr. trial, the Allan Agababa trial, exclusive pieces on the Life of a Drug Dealer/Addict, and Life behind bars...the story of Honofre Chargualaf and Kevin Cruz. In 2019, she was promoted to Assistant News Director and Lead Anchor. From 2015 to 2017 she served as Public Relations and Promotions Manager, for the Hotel Nikko Guam handling local radio and advertorial promotions, as well as produced and directed tv commercials for the hotel. Prior to this she worked with KUAM for three years as a reporter and segment host. She began her journalism career in 2012, working with Glimpses of Guam contributing to the Guam Business Magazine, R&R magazine, MDM magazine and the Marianas Business Journal.