Small System Guide: Understanding Utility Financial Statements

The most difficult task communities will face in running a water utility is maintaining a financially sustainable utility and providing water and/or wastewater disposal services at an affordable cost to customers. Since passage of the Safe Drinking Water Act amendments in 1996, there has been a much greater emphasis on financial sustainability of water utilities. Numerous tools and resources have been made available to help utilities achieve greater financial stability, and a greater emphasis has been placed on implementing concepts such as “full-cost pricing” and “asset management” in small utility operations.

Read the full report on Understanding Utility Financial Statements from the Rural Community Assistance Program here.