|Tennessee Comptroller of the Treasury
Utility Management Review Board
The Utility Management Review Board was originally created pursuant to Public Chapter 422 of 1987, later codified in Tennessee Code Annotated Sections 7-82-701 et seq., “for the purpose of advising utility district boards of commissioners in the area of utility management.” The legislation further stated “the Board shall be deemed to be acting for the public welfare and in furtherance of the general assembly's intent that utility districts be operated as self-sufficient enterprises.” While most of the Board’s responsibilities relate to providing assistance to utility districts located throughout the State of Tennessee, the Board also provides certain assistance to municipal water systems. Among the Board’s statutory responsibilities are the following:
Nine members: seven appointed by the Governor for four-year terms and two ex officio. The terms of no more than two board members are to expire in the same year. Three shall be experienced utility district managers and three shall be experienced utility district commissioners. One shall be a resident consumer that may have residential development experience, but not engaged with utility district management or operation. The Commissioner of Environment and Conservation and the Comptroller of the Treasury or their designees serve as ex officio members.
New Water Loss Information
THE AWWA FREE WATER LOSS SOFTWARE HAS BEEN UPDATED. FOR ANY AUDITS RECEIVED BY THE COMPTROLLER AFTER JANUARY 1, 2015, PLEASE BE SURE TO USE THE CORRECT FORM (version 5.0). THE FORM, NOW TWO PAGES LONG, IS LARGER AND MORE EASILY READ. BOTH PAGES SHOULD BE INCLUDED IN THE AUDIT REPORT.
At a joint meeting of the Water and Wastewater Financing Board and the Utility Management Review Board on June 6, 2012, the Boards decided to reaffirm the October 7, 2010, decision to adopt the American Water Works Association (AWWA) water loss methodology for inclusion in any audited financial statements received by the Comptroller of the Treasury on or after January 1, 2013. The water loss methodology can be obtained from www.AWWA.org
At the June 6, 2012, meeting the following was adopted by the Boards:
“Total annual cost of operating the water system” as used in the AWWA Free Water Audit Software is defined to include all costs for operation, maintenance, debt service (principal and interest) and depreciation. Remember this number is to include only expenses related to the WATER system – not the sewer system. The number can be obtained from the annual audited financial statements.
Failure to achieve the designated levels will result in a referral to the Board(s).
The requirements will be reviewed by the Boards annually to ensure the desired results are being achieved. The levels are subject to change by approval of the Board(s).
All correspondence relating to the Utility Management Review Board should be directed to: