(k) Revenue Recognition Customers are charged for water consumption and wastewater treatment based on metered water usage. An estimated amount has been recorded for services rendered but not yet billed as of the close of the respective years presented. This unbilled receivable is calculated by prorating the billings sent to customers in July and August of the subsequent fiscal year. (l) Availability Fees All developers and customers making new connections to the Authority’s water and/or wastewater treatment system are required to pay an availability fee prior to the installation of an Authority meter. Availability fees cover the cost of the customer’s pro-rata share of water and/or wastewater treatment capacity as well as water transmission mains, sewer interceptors, storage tanks, reservoirs, pumping stations, infiltration and inflow, and engineering administration. Availability fees are not used to pay for operations, maintenance, repairs or capital improvements to benefit existing customers. The Authority classifies this revenue as non-operating income. (m) Purchased Resources Purchased resources consist of expenses relating to the purchase of clean water and the treatment of wastewater from wholesale providers under the terms and conditions of relevant agreements. (n) Pensions The Virginia Retirement System (VRS) Political Subdivision Retirement Plan (the Authority’s retirement plan) is a multi-employer, agent plan. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Authority’s Virginia Retirement System (VRS) Plan and the additions to/deductions from the Authority’s VRS Plan’s net fiduciary position have been determined on the same basis as they were reported by VRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. The Authority currently reports employer pension contributions subsequent to the measurement date and differences between expected and actual experience as deferred outflows of resources on the accompanying Statements of Net Position. Deferred inflows of resources is a separate financial statement element which represents the acquisition of net position that applies to a future period, and will not be recognized as an inflow of resources (revenue) until then. The Authority currently reports differences between expected and actual experience, changes in assumptions, and the net difference between projected and actual earnings on plan investments in this category on the accompanying Statements of Net Position. (o) Group Life Insurance The VRS Group Life Insurance Program is a multiple employer, cost-sharing plan. It provides coverage to state employees, teachers, and employees of participating political subdivisions. The Group Life Insurance Program was established pursuant to §51.1-500 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. The Group Life Insurance Program is a defined benefit plan that provides a basic group life insurance benefit for employees of participating employers. For purposes of measuring the net Group Life Insurance Program OPEB liability, deferred outflows of resources and deferred inflows of resources related to the Group Life Insurance Program OPEB, and Group Life Insurance Program OPEB expense, information about the fiduciary net position of the (VRS) Group Life Insurance program OPEB and the additions to/deductions from the VRS Group Life Insurance Program OPEB’s net fiduciary position have been determined on the same basis as they were reported by VRS. In addition, benefit payments are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. (p) Health Insurance Credit The VRS Health Insurance Credit Program is a multiple-employer, agent defined benefit plan that provides a credit toward the cost of health insurance coverage for retired employees. The VRS Health Insurance Credit Program was established pursuant to §51.1-1400 et seq. of the Code of Virginia, as amended, and which provides the authority under which benefit terms are established or may be amended. For purposes of measuring the net Political Subdivision Health Insurance Credit Program OPEB liability, deferred outflows of resources and deferred inflows of resources related to the Political Subdivision Health Insurance Credit Program OPEB, and the Political Subdivision Health Insurance Credit Program OPEB expense, information about the fiduciary net position of the Virginia Retirement System (VRS) Political Subdivision 40 FINANCIAL SECTION NOTES TO FINANCIAL STATEMENTS
Prince William County Service Authority | 4 County Complex Court Woodbridge, VA 22192
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