Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697795091941.pdf (Grenada)
NAWASA Our MiSSiON StAteMeNt to provide customers with a safe, adequate and reliable water supply and safe disposal of waste water, in a viable and efficient manner, that meets and exceeds customer expectations, and ensures the development of our organization, communities and our nation.

NAWASA AnnuAl RepoRt 2012 1 Our ViSiON A premier water utility, providing excellent service to all customers, fostering a healthy and productive nation.
Committing to distinCtive quality and improved Customer Care - COrpOrAte theMe fOr 2012 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 3 Corporate infoRmAtion GeNerAl MANAGer christopher Husbands reGiStered OffiCe the carenage, st. george grenada, West indies telephone (473) 440-2155 fax (473) 440-4107 email: nawasa@nawasa.gd Sub - OffiCeS lower depradine street gouyave, st. John telephone (473) 437-1606 fax (473) 437-1607 seaton James street grenville, st. Andrew telephone (473) 442-7417 fax (473) 438-4185 OperAtiONS ANd MAiNteNANCe dusty Highway grand Anse, st. george telephone (473) 444-4661 fax (473) 444-2080 bANkerS RBtt grenada limited grand Anse, st. george telephone (473) 444-4919 grenada co–operative Bank limited church street, st. george telephone (473) 440-2111 ciBc firstcaribbean international Bank church street, st. george telephone (473) 440-3232 Republic Bank grenada limited Republic House, grand Anse, st. george telephone (473) 444-2265 AttOrNeyS-At-lAW Wilkinson, Wilkinson & Wilkinson lucas street, st. george telephone (473) 440-3578 francis K. paul and Associates #3 la Qua Building upper church street, st. george telephone (473) 440-4000 NAWASA’S leGAl COuNSel nAWAsA, the carenage, st. george telephone (473) 440-2155 AuditOrS pKf Accounting and Business Advisors pannell House, grand Anse, st. george telephone (473) 440-2562 or 3014 tAble Of CONteNtS BoARd of diRectoRs mAnAgement teAm geneRAl mAnAgeR’s RepoRt finAnciAl stAtements 06 08 10 24 4 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 5 Board of diRectoRs Mr. Christopher De Allie diRectoR JAn - dec 2012 Mr. Cecil Harris diRectoR JAn - dec 2012 Mr. Andre Worme diRectoR JAn - dec 2012 Mr. Trevor Thompson diRectoR JAn - dec 2012 Mrs. Pauline Andrew deputy cHAiRmAn JAn - dec 2012 Mr. Garvin Roberts diRectoR sept - dec 2012 Mr. John Adams diRectoR sept - dec 2012 Mr. Gordon Bolah diRectoR sept - dec 2012 6 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 7 Mr. Terrence Smith cHAiRmAn JAn - dec 2012 Mrs. Jocelyn Paul-Thomas diRectoR
 JAn - Aug 2012 Mr. Joseph Antoine diRectoR JAn - Aug 2012 Mr. Lyle Bullen diRectoR JAn - Aug 2012 Senior management teAm Mrs. Ann Primus AdministRAtive AssistAnt to tHe geneRAl mAnAgeR Mr. Vernon O’Brien infoRmAtion systems mAnAgeR Mrs. Louisa Yuventi AccountAnt Mr. Lauriston Hosten tRAnsmission And distRiBution mAnAgeR (Ag) Mrs. Pansy Ventour HumAn ResouRces mAnAgeR Mr. David Lewis plAnning And development mAnAgeR Mrs. Xiomara Forsyth in-House legAl counsel/ coRpoRAte secRetARy Mr. Allan Neptune pRoduction And QuAlity mAnAgeR Mr. David Francis finAnce mAnAgeR (RetiRed) Mr. Nigel Lowe cHief engineeR Ms. Raelene Lazarus communicAtions mAnAgeR Mr. Christopher Husbands geneRAl mAnAgeR NAWASA 8 NAWASA AnnuAl RepoRt 2012 AnnuAl RepoRt 2012 8 NAWASA NAWASA AnnuAl RepoRt 2012 AnnuAl RepoRt 2012 9 9 FACT The average human drinks over 60,566 litres (16,000 gallons) of water in a lifetime general manager’S RepoRt 10 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 11 general manager’S RepoRt Operating Highlights deSCriptiON finanCe expeNSe: reVeNue Avg.
domestic Revenue per domestic customer ($ per year) Avg.

non-domestic Revenue per non-domestic customer ($ per year) Avg.

government Revenue per government Accounts ($ per year) Avg.

Revenue per customer ($ per year) Avg.

expense per customer ($ per year) cash collection: cash disbursement % Receivable period (days) HUman reSoUrCeS no.

of employees /1,000 customer Accounts training Hours per employee total no.

employees Accessing training & development Avg.

no.
no.

employees in organization expenditure on training & development.
(including Board) ($) employee Health & safety severity Rate* CUStomer SerViCe customer service complaint Rate *Lost workdays/100 employees/year the year 2012 marked the third full year of implementation of our 5 year strategic plan, and a review of the progress showed that we con- tinue to be on schedule.
A new Board of directors was instituted in november, which replaced the previous Board whose tenure expired at the end of July.

this period of transition had an effect on the continuity and completion of some of the major policy level strategic initiatives.

the Authority returned to profita- bility as there were no “write-off’s” or impairments which had been the source of recent reported losses up to 2011. this positive performance is expected to con- tinue in the ensuing year.
FACT 8.5 million tons of water evaporates from the Dead Sea every day the responses were varied and although there has been a high percentage of success, a number of cases remained pending at different stages within the court system.

CUStomer SerViCe Unit during the year 2012, the tech- nical team of the customer ser- vice unit completed a total of 4,110 service orders of the 4,184 assigned, resulting in a 98% com- pletion rate.

this represents a 19% improvement in performance when compared to 2011.
Addi- tionally, all outstanding service orders pending from the previous year were completed.

the Authority achieved an aver- age adherence rate of 70% to the standards set out in the customer service charter, representing a 7% improvement from 2011.

Finance Department inCome and expenditUre the Authority declared a net profit of $1,791,81 which was a sub- stantial improvement over the net loss of $3,587,493 declared in 2011.
R e v e n u e f o r 2 0 1 2 w a s $30,346,521, which represents a 2% increase over 2011 as shown in fig 1.0. direct expenditure was $16,246,097, while indi- rect expenditure decreased by $2,932,363 from 2011. this was primarily due to the decrease in bad debts of $2,521,648.

management continued with tight cost control measures.

direct costs decreased by $198,703.


or 1% but annual expenditure on electricity and road reinstate- ment continued to be significant at $1.4m and $1.1m respectively, due to factors beyond manage- ments’ control.

there was general marginal decline in the sale of water.

total water sales decreased by $196,497 due to a 3.4% decline in commercial revenue during the period 2011 to 2012. sewer charges remained consistent to that of 2011. sale to ships declined by $64,435 or 25% from the prior year.
the concessionary program offered to customers who reported undetected leaks on their property that would have been registered on the meter and billed for by the Author- ity, amounted to approximately $100,000 of revenue, which was forgone by nAWAsA during the report period, as relief to the affected customers.

CommerCial Unit the commercial unit continued to show positive results, as evi- denced in the Accounts Receiv- able.
notwithstanding, the out- standing arrears attributable to the government of grenada, other receivables declined by $2.14m resulting in a lesser provi- sion for bad and doubtful debts.

the Asset protection unit, in the pursuit of outstanding debts through the legal system, also contributed significantly to the decline in non-governmental Receivables.

A total of 968 service orders were investigated for tam- pering, of which 173 were offend- ers.
charges were applied to the offenders in accordance with the provisions of the nAWAsA Act.

during the fiscal year, arrears of $1.1m on 619 accounts were pur- sued though the legal system.
12 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 13 general manager’S RepoRt Finance Department Human Resources Department fig 1.0 ReVeNue BY CATeGORY 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 0 2010 2011 2012 Water Sales Total income representatives from nAWAsA, formed part of the focus group discussions.

retireeS for 2011 the following staff members retired after making their contribu- tion to the Authority.
the opportu- nity is taken to thank them for their years of service and dedication, and to wish them an enjoyable retirement.

table 1.0 gives details on Retirees.

Staffing the staff compliment of 236 employees, which included one hundred and fifty-seven (157) permanent and seventy–nine (79) long term contracted work- ers, has shown an increase com- pared to 228 in 2011. short term or temporary contracted workers amounted to forty five (45).
staff benefited from a total of 8,425 training hours at a cost of $149,885 which indicates nAWA- sA’s continued commitment to the development of its human resources.
reCrUitment & SeleCtion mrs. Xiomara forsyth, Attorney at law, was appointed to the posi- tion of legal counsel/corporate secretary on a 2 year contractual basis with effect from August 12th, 2012. the legal counsel/ corporate secretary’s respon- sibility is to provide legal advice and opinions on the Authority’s rights and obligations in execu- tion of its functions, debt collec- tion and Board matters.
performanCe management SyStem and JoB eValUation the Authority commenced the groundwork for the implementa- tion of employee performance management system (epms) with training of managers, super- visors, foremen and a wide cross-section of staff members.
A project team including represent- atives from the technical & Allied Workers union (tAWu) and public Workers union (pWu) along with table 1.0 ReTiReeS retiree Allan thomas norris calliste Andrew Johnson dennis Abraham Mrs. Xiomara Forsyth in-House legAl counsel/ coRpoRAte secRetARy fOrMer pOSitiON Heavy equipment operator effeCtiVe dAte yeArS Of SerViCe december 31, 2012 26 years, 7 months customer service supervisor october 24, 2012 21 years 0 months pipefitter foreman August 1, 2012 20 years, 9 months June 21, 2012 23 years, 4 months christopher telesford Heavy equipment operator february 3, 2012 31 years, 9 months 14 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 15 general manager’S RepoRt FACT The average human brain contains around 78% water Transmission and Distribution PIPE SIZES 1/2" 3/4" 1" 1 1/4" 1 1/2" A total of 23 micro projects were completed by the t&d depart - ment at a cost of ec$535,000.00.
these projects which gener- ally involved pipeline replace- ments, extension to relocations of mains from private property and upgrades, were completed in different areas throughout the island.

some of the areas which benefitted are shown in table 2.0. during the year a total of 6,279 leaks were repaired, which rep- resents a 4.2 % decrease from 2011.

A total of 49% repairs were done on half-inch diameter lines as shown in fig 2.0 below.
16 NAWASA AnnuAl RepoRt 2012 our customer base continued its growth with 683 new service con- nections installed during the year, an increase of 42 connections compared to 2011. fig 2.0 RePAiRS FOR 2012 table 2.0 MiCRO PROJeCTS Production and Quality pAriSh st. george fontenoy, tempe, frequente, snug corner deSCriptiON st Andrew Battle Hill and pearls st. John diego piece and marigot st mark samaritan st. david old Westerhall, mt.
tranquil, morne Repos, champ- fleur, Belle plain, laf emme, la sagesse, corinth, Beaton/la femme st patrick prospect & Bathway the production and Quality department performed creditably over the period under review.

All units, including treatment plant operations, pump and electri- cal, laboratory, chlorination and sewerage, together with the sup- porting services of the ground crew, played their role in enabling the department to move closer towards fulfilling its strategic objectives and goals.
during the third quarter of the year inclement weather conditions, mainly in the northern part of the island, resulted in serious chal- lenges in water quality, quantity and cost.

production for the year was recorded as 1.5% or 37 m.g.

less than that of 2011. fig 3.0 is a comparative sum- mary of microbiological sampling for the years 2010 to 2012.
NAWASA AnnuAl RepoRt 2012 17 general manager’S RepoRt FACT Rain contains vitamin B12 Production and Quality Planning & Development fig 3.0 MiCROBiOLOGiCAL SAMPLeS 2500 2000 1500 1000 500 0 2010 2011 2012 Total Quality Checks Number of Samples Taken from NAWASA’s Distribution Number of Positive Samples 18 NAWASA AnnuAl RepoRt 2012 during the report period, the plan- ning and development depart- ment completed 16 projects at a cost of $2.17m.
the improvement works have ensured a better qual- ity and quantity of service in sev- eral areas of the country.

some of the projects are shown in table 3.0 below.

Rainfall data was collected from 18 stations island wide which totalled 37,878mm of rainfall during 2012.

Below, fig 4.0 shows comparative rainfall data for the years 2010 - 2012. garage Unit the cost for maintenance of the vehicle fleet was approximately $614,676.98.

tyre replacement cost was $103,137.23.


Welding activities done by the section, included maintenance to vehicles and plants and to nAWA- sA’s other physical assets, which were valued at $167,050.00.

one vehicle was purchased at a cost of $74,000.00.


table 3.0 CAPiTAL PROJeCTS prOjeCtS development of 1000 ft. access road to the borehole at lasagesse, st. david installation of turbidity meter & dozing equipment and plant electrification at dougaldston, st. John Rehabilitation of the ‘in-takes’ at clozier, st. Andrew fencing of treatment plants island-wide mardigras distribution system replacement and exten- sion to mt.
parnassus, st. george upgrade pipeline from highway to settlement to accommodate housing development at frequente, st. george eC$ $29,000 $26,000 $85,000 $300,000 $900,000 $110,000 installation of 1200 6” pvc pipes at palmiste, st John $234,000 Replacement of 4000 ft. of aged 4” line with 2” galva- nized pipes, at Bathway, st. patrick $68,000 NAWASA AnnuAl RepoRt 2012 19 general manager’S RepoRt FACT Niagara Falls can fill 4,000 bathtubs every second Planning & Development Communications Unit pUBliC edUCation & CampaignS for 2012, World Water day observed in march, was the high- light of the year for the Authority with regard to industry observed events.
thirty (30) schools and over 600 students participated in a public march and provided per- formances based on the theme of “Water and food security”.

ninety (90) persons benefitted from the “fRee R econnec- tion” initiative; a one-day-only offer to domestic customers, for which the customary reconnec- tion fee was waived.

the event was highly commended by staff, participating schools, students and the general public.
in April, the st. patrick’s water supply challenge, caused by adverse weather conditions brought a proactive response from the Authority, which sought direct engagement with the com- munity affected.

this resulted in a community meeting with rep- resentatives from a wide cross section of stakeholders and two subsequent volunteer initia- tives in collaboration with mem- bers of staff (nAWAsA’s sports club) and a community group (snell Hall sdA pathfinders).
the public was further sensitized to fig 4.0 COMPARATiVe RAiNFALL DATA 2010-2012 2010 2011 2012 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 7000 6000 5000 4000 3000 2000 1000 0 Information Technology the information systems unit (isu) undertook several major activities which resulted in increased efficiency in the net- work and computer systems.
the networks communication links were upgraded with the installation and configuring of a new microsoft exchange server 2010 email system, with fifty (50) additional mailbox licences.

the Wide Area network (WAn) was upgraded from five sites to eight sites and included the redesign of the architecture and design of the networks.
the implementation of a microsoft unified communication system, using microsoft exchange server 2010, and the procurement of thirty-six (36) computer systems and peripherals including several facsimile, scanners and printers, were a welcome investment in the overall upgrade of the isu.

this investment impacted positively on the productivity and morale of staff.
Another notable achievement of the isu was the first ever systems maintenance and optimisation of the northstar customer informa- tion system (cis) and the sQl server 2005 data bases.

the documentation centre was upgraded to facilitate the print- ing of the Authority’s official let- terhead, which was previously ordered from a local printery.
nAWAsA’s communications unit has, in 2012, significantly increased its activities for the pur- pose of advocacy and education in all things water related, as well as corporate visibility.

Key to the unit’s success was the develop- ment of a communications plan which integrated all nAWAsA’s programs, public education and advocacy efforts, as a guide to achieving organisational objec- tives within an agreed budget.
meSSage deCiSion & deVelopment A number of channels were identi- fied for strategic delivery of mes- sages.

Activities concentrated on maintaining proven channels of communication, developing news messages and modes of engage- ment for predetermined priority areas (youth, sport and educa- tion), maximising message reach and adding value to the Author- ity’s image and reputation.
the result is a thriving social media network, new advertis- ing collateral and improved data gathering for monitoring, bench- marking and evaluating the suc- cess of the Authority’s commu- nication methods, allowing for adjustments as necessary.
20 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 21 general manager’S RepoRt Communications Unit Acknowledgements the challenges faced and the approach to resolution by the in- house production of videos of these collaborations, shared via tv and social media.
the Authority further successfully launched its customer service charter in July 2012. this effort was applauded by stakehold- ers as a significant effort by the Authority to create and maintain opportunity for dialogue on chal- lenges affecting all stakeholders and nAWAsA’s role in achieving resolution.

its customary contributions to the communities.

this was facili- tated in a number of areas outside of main events which included sponsorships/contributions and support.
participation z Red cross disaster prepar- edness and song competi- tion initiative - exhibition participation edUCation dropletS the Authority facilitated 8 treat- ment plant visits throughout the year and presentations at 3 school fairs/career days and fur- ther assistance was given to: z sJc grenville - with water storage tank the Authority’s newsletter - suc- cessfully met its target of three publications (quarterly), and con- tinues to grow by way of contribu- tions from the wider staff popu- lation.
this suggests that the newsletter is beginning to fulfil its purpose of integrating employees of all roles and ranks.
foStering pUBliC relationS, awareneSS & UnderStanding z tAmcc - fundraising dinner for culinary arts z donnel Best - tuition fundraiser the Authority complemented its use of traditional and social media along with direct community meetings (spring garden, guapo, fountain, munich, egmont and true Blue), throughout 2012. these forums created multiple opportunities to address issues including water quality, billing, reports of outages or leakages, account balances, operation and employment enquiries.
in keeping with the objective of reinforcing positive public per- ception, the Authority continued CHaritaBle organiSationS and CommUnity CaUSeS z Resource center for the Blind z grenada Horticultural society z Bel Air Home for children z Hms prisons graduation z pink Ribbon society - cancer Walk - employee 22 NAWASA AnnuAl RepoRt 2012 FACT You begin to feel thirsty when your body looses 1% of water i wish to place on record my appreciation for the continued support of the public and for their appreciation of the improvements that the organisation continues to make.
i wish to thank the Board of direc- tors for their support during the year, and the management and staff for their continued support and dedication.

i look forward to further improvements in the coming year, as we work together in furtherance of our mission.
Mr. Christopher Husbands geneRAl mAnAgeR NAWASA AnnuAl RepoRt 2012 23 FACT Toilets use 35% of indoor water use finanCial stAtements 24 NAWASA 24 NAWASA AnnuAl RepoRt 2012 AnnuAl RepoRt 2012 NAWASA NAWASA AnnuAl RepoRt 2012 AnnuAl RepoRt 2012 25 25 Accountants & Business Advisers NATiONAL WATeR AND SeWeRAGe AuTHORiTY FiNANCiAL STATeMeNTS FOR THe YeAR eNDeD 31ST DeCeMBeR, 2012 tAble Of CONteNtS independent AuditoRs’ RepoRt stAtement of finAnciAl position stAtement of compReHensive income stAtement of cHAnges in eQuity stAtement of cAsH floWs notes to tHe finAnciAl stAtements 28 30 31 32 33 34 26 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 27 iNDePeNDeNT AuDiTORS’ RePORT TO THe MiNiSTeR ReSPONSiBLe FOR WORKS, PHYSiCAL DeVeLOPMeNT AND PuBLiC uTiLiTieS ON NATiONAL WATeR AND SeWeRAGe AuTHORiTY iNDePeNDeNT AuDiTORS’ RePORT TO THe MiNiSTeR ReSPONSiBLe FOR WORKS, PHYSiCAL DeVeLOPMeNT AND PuBLiC uTiLiTieS ON NATiONAL WATeR AND SeWeRAGe AuTHORiTY We have audited the accompanying financial statements of the Authority which comprise the statement of financial position at 31st december, 2012 and the related statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory notes.
reSponSiBility for tHe finanCial StatementS those charged with governance are responsible for the preparation and fair presentation of these financial statements in accordance with international financial Reporting standards.
this responsibility includes: designing, implementing and maintaining internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

aUditorS’ reSponSiBility our responsibility is to express an opinion on these financial statements based on our audit.
We con- ducted our audit in accordance with international standards on Auditing.

those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.
the procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
in making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
opinion in our opinion, the accompanying financial statements present fairly in all material respects, the financial position of the Authority as of december 31st, 2012 and of its financial performance and its cash flows for the year then ended in accordance with international financial Reporting standards.

GRENADA: 16th September, 2013 Accountants & Business Advisers partners: Henry A. Joseph fccA (managing), pearlena J. sylvester fccA (mrs.), michelle A. millet B.A.
cgA (mrs.) 28 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 29 STATeMeNT OF FiNANCiAL POSiTiON AT 31ST DeCeMBeR, 2012 STATeMeNT OF COMPReHeNSiVe iNCOMe FOR THe YeAR eNDeD 31ST DeCeMBeR, 2012 ASSeTS notes 2012 ($) 2011 ($) notes 2012 ($) 2011 ($) Non-current Assets property, plant and equipment Current Assets inventories trade and other receivables loans and receivables financial assets cash and cash equivalents 61,862,310 62,449,984 6,451,610 5,605,286 12,879,758 11,552,560 414,240 2,737,481 400,000 3,162,874 22,483,089 20,720,720 Revenue direct costs gross profit other income 14 28,952,584 29,166,819 15 (16,246,097) (16,444,800) 12,706,487 12,722,019 16 1,398,460 604,223 total operating income 14,104,947 13,326,242 TOTAL ASSeTS 84,345,399 83,170,704 Administrative and general expenses 21 (11,951,104) (14,883,467) eQuiTY AND LiABiLiTieS capital Retained earnings 9 17,751,630 46,583,781 17,751,630 44,791,966 impairment of financial assets operating profit/(loss) 2,153,843 (1,557,225) 17 18 - (1,609,421) (362,028) (420,847) TOTAL eQuiTY 64,335,411 62,543,596 finance cost Non-current liabilities long term borrowings deferred income Current liabilities trade and other payables short term borrowings Retirement benefit obligation 10 11 12 10 13 2,674,566 2,121,760 3,768,330 2,222,488 1,774,130 1,095,219 2,699,100 1,016,320 12,344,313 10,920,870 TOTAL LiABiLiTieS 20,009,988 20,627,108 TOTAL eQuiTY AND LiABiLiTieS 84,345,399 83,170,704 profit/(loss) for the year 1,791,815 (3,587,493) :chairman :general manager the notes on pages 34 to 52 form an integral part of these Financial Statements the notes on pages 34 to 52 form an integral part of these Financial Statements 30 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 31 STATeMeNT OF CHANGeS iN eQuiTY FOR THe YeAR eNDeD 31ST DeCeMBeR, 2012 STATeMeNT OF CASH FLOWS FOR THe YeAR eNDeD 31ST DeCeMBeR, 2012 capital Retained earnings ($) ($) total ($) Balance at 1st January, 2011 17,751,630 48,379,459 66,131,089 loss for the year - (3,587,493) (3,587,493)
 Balance at 31st december, 2011 17,751,630 44,791,966 62,543,596 profit for the year - 1,791,815 1,791,815 Balance at 31st december, 2012 17,751,630 46,583,781 64,335,411 notes 2012 ($) 2011 ($) OPeRATiNG ACTiViTieS profit/(loss) for the year Adjustments for: depreciation gain on disposal of property, plant and equipment Amortization of deferred income Cash inflow/(outflow) before working capital changes (increase)/decrease in inventories (increase)/decrease in trade and other receivables (decrease)/increase in trade and other payables increase in retirement benefit obligations 1,791,815 (3,587,493) 3,747,169 (59,845) (100,728) 5,378,411 (846,324) (1,327,198) (924,970) 1,423,443 3,648,290 (75,934) (100,728) (115,865) 266,804 883,350 929,846 2,364,930 cash provided by operating activities 3,703,362 4,329,065 iNVeSTiNG ACTiViTieS purchase of property, plant and equipment (3,159,500) (3,627,543) proceeds from disposal of property, plant and equipment (increase)/decrease in loans and receivables financial assets 59,850 75,940 (14,240) 1,209,421 cash used in investing activities (3,113,890) (2,342,182) FiNANCiNG ACTiViTieS net decrease in borrowings increase in deferred income (1,014,865) - (943,878) 136,417 cash used in financing activities (1,014,865) (807,461) net (decrease)/increase in cash and cash equivalents cash and cash equivalents - at beginning of the year (425,393) 3,162,874 1,179,422 1,983,452 - at end of the year 8 2,737,481 3,162,874 the notes on pages 34 to 52 form an integral part of these Financial Statements the notes on pages 34 to 52 form an integral part of these Financial Statements 32 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 33 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 1.
CORPORATe iNFORMATiON 2.

SuMMARY OF SiGNiFiCANT ACCOuNTiNG POLiCieS (continued) the Authority was created by Act of parliament no.

25 of 1990 to take over the opera- tions of the former central Water commission and with sole jurisdiction in all matters pertaining to the supplying of all potable water and sewerage facilities throughout grenada.
At the statement of financial position date the Authority employed one hundred and fifty-seven (157) permanent workers, seventy-nine (79) contracted workers and forty-five (45) temporary workers.

(2011: 175, 64 and 29 respectively).

2.

SuMMARY OF SiGNiFiCANT ACCOuNTiNG POLiCieS (a) Basis of Preparation the financial statements have been prepared in accordance with international financial Reporting standards (ifRs).

the financial statements have been prepared under the historical cost conven- tion.
the financial statements are expressed in eastern caribbean dollars.

the preparation of financial statements in conformity with ifRs requires the use of certain critical accounting estimates.

it also requires management to exercise its judgement in the process of applying the Authority’s accounting policies.

the areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in note 3.
(b) New accounting standards, amendments and interpretations (i) there are no new standards, amendments or interpretations that are effective for the first time for the financial year beginning on or after 1 January 2012 that would be expected to have a material impact on the company.

(ii) new standards, amendments and interpretations issued but not effective for the financial year beginning 1 January 2012 and not early adopted.
these either do not apply to the activities of the company or have no material impact on its financial statements.
iAs 1 presentation of items of other comprehensive income - effective for annual peri- ods beginning on or after 1st July, 2012 iAs 19 employee benefits - effective for annual periods beginning on or after 1st January, 2013 iAs 27 separate financial statements - effective for annual periods beginning on or after 1st January, 2013. iAs 28 investments in associates and joint ventures - effective for annual periods beginning on or after 1st January, 2013 ifRs 9 financial instruments - classification and measurement - effective for annual periods beginning on or after 1st January, 2013. ifRs 10 consolidated financial statements- effective for annual periods beginning on or after 1st January, 2013.
(b) New accounting standards, amendments and interpretations (continued) ifRs 11 Joint arrangements - effective for annual periods beginning on or after 1st January, 2013. ifRs 12 disclosure of interest in other entities- effective for annual periods beginning on or after 1st January, 2013. ifRs 13 fair value measurement - effective for annual periods beginning on or after 1st Janu- ary, 2013.

(c) Property, Plant and Equipment property, plant and equipment are stated at cost less accumulated depreciation.
subsequent costs are included in the assets carrying amounts or are recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Authority and the cost of the item can be measured reliably.

All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.

land is not depreciated.


depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives.
the rates used are as follows: Building and equipment office furniture and equipment miscellaneous tools and equipment motor vehicle and Heavy equipment production equipment per annum % 2.5 10 - 15 10 10 - 33.33 2.5 the assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the statement of financial position date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
gain and losses on disposals are determined by comparing proceeds with carrying amount.

these are included in the statement of comprehensive income.

34 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 35 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 2.

SuMMARY OF SiGNiFiCANT ACCOuNTiNG POLiCieS (continued) 2.
SuMMARY OF SiGNiFiCANT ACCOuNTiNG POLiCieS (continued) (d) Financial instruments (d) Financial instruments (continued) financial instruments are contracts that give rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

financial assets and financial liabilities are recognised on the Authority’s statement of financial position when the Authority becomes a party to the contractual provisions of the instrument.
financial liabilities are derecognised when they are extinguished that is when the obligation specified in the contract is discharged, cancelled or expired.

the difference between the carrying amount of a financial liability extinguished and the consideration paid is recognised in the state- ment of comprehensive income.
recognition and measurement All regular way purchases and sales of financial assets are recognised or derecognised on the trade date that is the date on which the Authority commits itself to purchase or sell an asset.

A regular way purchase and sale of a financial asset is a purchase or sale of an asset under a contract whose terms require delivery of the asset within the time frame established generally by regulation or convention in the market place concerned.
When financial assets are recognised initially, they are measured at fair value of the consideration given plus transaction costs directly attributable to the acquisition of the asset.

financial assets are derecognised when the contractual rights to receive the cash flows expire or where the risks and rewards of ownership of the assets have been transferred.

financial assets the Authority classifies its financial assets as loans and receivables.
management determines the appropriate classification of its financial assets at the time of purchase and re-evaluates this designation at every reporting date Impairment of financial assets the Authority assesses at each date of the statement of financial position whether there is objec- tive evidence that a financial asset or group of financial assets is impaired.
A financial asset or group of financial assets is impaired and impairment losses are incurred if and only if, there is objective evidence of impairment as a result of one or more events that occurred after the initial recognition of the asset (a “loss event”) and that event (or events) has an impact on the estimated future cash flows of the financial asset or group of financial assets that can be reliably estimated.
objective evidence that a financial assets or group of financial assets is impaired includes observ- able data that comes to the attention of the Authority about the following loss events: (i) significant financial difficulty of the issuer or obligor.

(ii) A breach of contract, such as default or delinquency in interest or principal payments.

(iii) it is becoming probable that the borrower will enter in bankruptcy or other financial re-organization.
(iv) the disappearance of an active market for that financial asset because of financial difficulties.
(v) observable data indicating that there is a measurable decrease in the estimated cash flows from a group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with individual financial assets in the group, includ- ing adverse changes in the payment status of borrowers in the Authority or national or economic conditions that correlate with defaults on assets in the Authority.
the Authority first assesses whether objective evidence of impairment exists individually for finan- cial assets that are individually significant.

if the Authority determines that no objective evidence of impairment exists for an individually assessed financial asset, it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impair- ment.
Assets that are individually assessed for impairment and for which an impairment loss is or continues to be recognised are not included in a collective assessment of impairment impairment losses are recorded in an allowance account and are measured and recognised as follows: (i) financial assets measured at amortized cost the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the financial asset’s original effective interest rate is recognised in the statement of comprehensive income.
if, in subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised (such as improvement in the debtor’s credit rating), the previously recognised loss is reversed to the extent that the carrying amount of the financial asset does not exceed what the amortised cost would have been, had the impairment not been recognised at the date that the impairment reversed.
the amount of the reversal is recognised in the statement of comprehensive income.

(ii) financial assets measured at cost the difference between the asset’s carrying amount and the present value of the estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the current market’s rate of return for similar financial assets is recognised in the statement of comprehensive income.

these losses are not reversed.


36 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 37 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 2.

SuMMARY OF SiGNiFiCANT ACCOuNTiNG POLiCieS (continued) 2.
SuMMARY OF SiGNiFiCANT ACCOuNTiNG POLiCieS (continued) (d) Financial instruments (continued) financial liabilities (i) Revenue Recognition (continued) ii) sales of services When financial liabilities are recognised initially, they are measured at fair value of the considera- tion given plus transaction costs directly attributable to the acquisition of the liability.

financial liabilities are re-measured at amortised cost using the effective interest method.
financial liabilities are derecognised when they are extinguished that is when the obligation specified in the contract is discharged, cancelled or expired.

the difference between the carrying amount of a financial liability extinguished and the consideration paid is recognised in the state- ment of comprehensive income.

sales of services are recognised in the accounting period in which the services are rendered.

iii) interest income interest income is recognised on an accrual basis.
iv) miscellaneous income All other income is recognised on an accrual basis.

(e) Inventories (j) Trade Receivables inventories are valued at the lower of cost and net realizable value.

cost is determined on an aver- age cost basis, net realizable value is the price at which stock can be realized in the normal course of business.

trade receivables are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
if collection is expected in one (1) year or less, they are classified as current assets.

if not, they are presented as non-current assets.

(f) Foreign Currencies foreign currency transactions during the year were converted into eastern caribbean currency dollars at the exchange rates prevailing at the dates of the transactions.

monetary assets and liabilities denominated in foreign currencies are re-translated at the rate of exchange ruling at the statement of financial position date.
profits or losses on translation are reflected in the statement of comprehensive income.

there are no foreign currency borrowings.

(g) Pension and Gratuity the Authority’s pension and gratuity plan is a non-contributory plan, for all permanent employees with twenty (20) years of continuous service.

contributions are charged to the statement of com- prehensive income.

(h) Cash and Cash Equivalents cash and cash equivalents comprise of cash on hand and at bank.
Bank overdraft is included as a component of cash and cash equivalents for the purpose of the cash flow statement.

Bank overdraft is shown within borrowings in current liabilities on the statement of financial position.

(i) Revenue Recognition Revenue comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the Authority’s activities.
Revenue is recognized as follows: i) sales of goods sales of goods are recognised when the Authority has delivered products to the customer, the customer has accepted the products and collectibility of the related receivables is reasonably assured.

trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method, less provision for impairment.
A provision for impairment of trade receivables is established when there is objective evidence that the Authority will not be able to collect all amounts due according to the original terms of the receivable.

significant finan- cial difficulties of the debtor and default or delinquency in payment are considered indicators that the trade receivable is impaired.
(k) Trade Payables trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Accounts payable are classified as current liabilities if payment if due within one (1) year or less, if not, they are presented as non- current liabilities.

trade paya- bles are recognised initially at fair value and subsequently measured at amortized cost using the effective interest rate method.
(l) Borrowings Borrowings are recognised at fair value net of transaction cost incurred.

Borrowings are subse- quently stated at amortized cost: any difference between the proceeds, net of transaction cost, and the redemption value is recognised in the statement of comprehensive income over the period of borrowings.
Borrowings are classified as current liabilities unless the Authority has an unconditional right to defer settlement of the liability for at least twelve (12) months after the statement of financial position date.

(m) Finance Cost finance cost is recognised in the statement of comprehensive income as an expense in the period in which they are incurred.

38 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 39 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 2.
SuMMARY OF SiGNiFiCANT ACCOuNTiNG POLiCieS (continued) (n) Capital capital contributions by the government of grenada are classified as equity.

(o) Taxation the Authority is exempt from the payment of income tax.

3.

CRiTiCAL ACCOuNTiNG eSTiMATeS AND JuDGMeNTS iN APPLYiNG ACCOuNTiNG POLiCieS the development of estimates and the exercise of judgment in applying accounting polices may have a material impact on the Authority’s reported assets, liabilities, revenues, benefits and expenses.
the items which may have the most effect on the Authority’s financial statements are set out below: provision for Bad and doubtful debts A general provision for bad and doubtful debts is made based on 40% of water and sewer debtors over one (1) year old after government of grenada balances are deducted.

As debts become uncollectible they are written off against the provision.

Additions to the provision are charged to current operations.
impairment of inventory provision is made for obsolete, slow moving and defective stocks.

Impairment of financial assets management assesses at each statement of financial position date whether assets are impaired.

An asset is impaired when the carrying value is greater than its recoverable amount and there is objective evidence of impairment.

Recoverable amount is the present value of the future cash flows.

provisions are made for the excess of the carrying value over its recoverable amount.
property, plant and equipment management exercises judgment in determining whether future economic benefits can be derived from expenditures to be capitalized and in estimating the useful lives and residual values of these assets.
40 NAWASA AnnuAl RepoRt 2012 N e T B O O K V A L u e 5 , 5 4 1 , 5 0 7 5 1 , 4 6 7 , 4 9 5 1 , 2 9 9 , 3 5 4 9 6 6 , 1 3 4 1 , 4 4 8 , 6 2 4 1 , 7 2 6 , 8 7 0 6 2 , 4 4 9 , 9 8 4 B a l a n c e a t 3 1 s t D e c e m b e r , 2 0 1 1 c o s t / v a u a t i l o n 5 , 5 4 1 , 5 0 7 8 7 , 9 2 0 , 0 1 2 4 , 5 3 4 , 8 0 5 3 , 9 4 0 , 3 4 1 , 2 2 4 1 , 5 4 9 , 1 7 2 6 , 8 7 0 1 0 5 , 9 0 5 , 0 8 4 5 , 5 4 1 , 5 0 7 5 1 , 4 6 7 , 4 9 5 1 , 2 9 9 , 3 5 4 9 6 6 , 1 3 4 1 , 4 4 8 6 2 4 , , 1 7 2 6 , 8 7 0 6 2 , 4 4 9 , 9 8 4 l A c c u m u a t e d d e p r e c a t i i o n - ( 3 6 , 4 5 2 , 5 1 7 ) ( 3 , 2 3 5 , 4 5 1 ) ( 2 , 9 7 4 , 2 0 7 ) ( 7 9 2 9 2 5 ) , - ( 4 3 , 4 5 5 , 1 0 0 ) - - - - 5 0 4 , 4 6 8 4 8 , 7 8 4 - i o p e n n g b o o k v a u e l 5 , 5 4 1 , 5 0 7 5 3 , 4 9 4 , 9 5 6 ( 2 , 5 8 0 , 7 1 3 ) ( 3 3 5 , 2 8 5 ) ( 5 1 3 , 5 2 0 ) ( 2 1 8 7 7 2 ) , - - ( 6 ) - - - , ( 4 8 7 8 4 ) - - ( 3 , 6 4 8 , 2 9 0 ) ( 6 ) - 1 , 4 8 3 , 8 5 4 1 5 0 , 7 8 5 7 5 0 , 1 2 5 7 2 9 , 5 3 5 1 , 0 2 5 2 6 6 , 1 9 5 6 1 9 , 6 2 , 4 7 0 , 7 3 7 6 4 2 1 3 0 , , 1 5 8 0 , 0 3 5 3 , 6 2 7 , , 2 0 1 1 N e T B O O K V A L u e 5 , 5 4 1 , 5 0 7 5 3 , 4 9 4 , 9 5 6 1 , 4 8 3 , 8 5 4 7 2 9 , 5 3 5 1 , 0 2 5 , 2 6 6 1 9 5 , 6 1 9 6 2 , 4 7 0 , 7 3 7 l A c c u m u a t e d d e p r e c a t i i o n - ( 3 3 , 8 7 1 , 8 0 4 ) ( 2 , 9 0 0 , 1 5 6 ) ( 3 , 0 1 4 , 4 9 7 ) ( 5 7 4 1 5 3 ) , - ( 4 0 , 3 6 0 , 6 2 0 ) c o s t / v a u a t i l o n B a l a n c e a t 1 s t J a n u a r y , 2 0 1 1 5 , 5 4 1 , 5 0 7 8 7 , 3 6 6 , 7 6 0 4 , 3 8 4 , 0 2 0 3 , 7 4 4 , 0 3 2 , 1 5 9 9 , 4 1 9 1 9 5 , 6 1 9 1 0 2 , 8 3 1 , 3 5 7 ( $ ) ( $ ) ( $ ) ( $ ) ( $ ) ( $ ) ( $ ) 4 .
P R O P e R T Y fi , - i n - c a p i t a l t o t a l NAWASA AnnuAl RepoRt 2012 41 l a t o t l a t i p a c - n i - , fi f o d n a s g n d i l i u B d n a l i ) d e u n i t n o c ( T N e M P u Q e D N A T N A L P Y, T R e P O R P .
4 ) $ ( ) $ ( ) $ ( ) $ ( ) $ ( ) $ ( ) $ ( 4 8 9 , 9 4 4 , 2 6 0 7 8 , 6 2 7 , 1 4 2 6 , 8 4 4 , 1 4 3 1 , 6 6 9 4 5 3 , 9 9 2 , 1 5 9 4 , 7 6 4 , 1 5 7 0 5 , 1 4 5 , 5 2 1 0 2 , , 9 5 1 , 3 1 9 6 , 6 8 9 , 1 3 9 7 , 6 5 4 3 6 7 , 6 6 9 6 0 , 5 4 2 - ) 5 ( ) 9 6 1 , 7 4 7 , 3 ( - - ) 0 6 0 , 1 8 2 , 3 ( - - - ) 5 ( - - ) 0 9 2 , 1 6 2 ( ) 0 8 9 , 8 4 4 ( ) 9 1 5 , 9 4 3 ( ) 0 8 3 , 7 8 6 , 2 ( - 4 3 2 , 6 9 3 0 6 0 , 1 8 2 , 3 - - - 0 5 9 , , 2 6 8 , 1 6 1 0 5 , 2 3 4 7 2 1 , 4 4 6 , 1 2 1 9 , 3 8 5 4 0 9 , 4 9 1 , 1 9 0 4 , 7 5 4 , 2 5 7 5 4 , 9 4 5 , 5 9 9 5 , 0 1 8 , 8 0 1 1 0 5 , 2 3 4 2 4 3 , 8 9 6 , 2 9 1 1 , 3 5 7 , 3 4 7 8 , 9 7 7 , 4 6 0 3 , 7 9 5 , 1 9 7 5 4 , 9 4 5 , 5 n o l i t a u a v / t s o c 1 1 0 2 , r e b m e c e D t s 1 3 t a e c n a l a B ) 9 8 2 , 8 4 9 , 6 4 ( - ) 5 1 2 , 4 5 0 , 1 ( ) 7 0 2 , 9 6 1 , 3 ( ) 0 7 9 , 4 8 5 , 3 ( ) 7 9 8 , 9 3 1 , 9 3 ( - n o i i t a c e r p e d d e t a u m u c c A l 0 1 3 , 2 6 8 , 1 6 1 0 5 , 2 3 4 7 2 1 , 4 4 6 , 1 2 1 9 , 3 8 5 4 0 9 , 4 9 1 , 1 9 0 4 , 7 5 4 , 2 5 7 5 4 , 9 4 5 , 5 e u L A V K O O B T e N e v a h s g n d e e c o r p i .
fi e n e b s a h y t i r o h t u A e h t NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 5. iNVeNTORieS Balance as at 31st december, 2012 less: provision for obsolescence 6.
TRADe AND OTHeR ReCeiVABLeS Water and sewer debtors ship debtors total trade receivables 2012 ($) 2011 ($) 7,089,681 (638,071) 6,150,946 (545,660) 6,451,610 5,605,286 2012 ($) 2011 ($) 13,148,649 12,159,778 81,666 69,732 13,230,315 12,229,510 less: provision for doubtful balances (1,374,070) (1,576,805) net trade receivables 11,856,245 10,652,705 sundry debtors prepayments staff loans security deposits other receivables 758,348 1,000,413 13,048 17,850 7,115 702,471 830,538 45,376 16,250 2,708 other provision for doubtful debts (773,261) (697,488) movement in provision for impairment of trade and other receivables were the following: 12,879,758 11,552,560 Balance at 1st January, 2012 charge for the year Amounts written off 2012 ($) 2011 ($) 2,274,293 86,297 2,437,595 2,607,945 (213,259) (2,771,247) Balance at 31st december, 2012 2,147,331 2,274,293 .
42 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 43 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 7.

LOANS AND ReCeiVABLeS FiNANCiAL ASSeTS 10.


BORROWiNGS British American insurance company limited policy #Bgg002711 policy #Bgg003143 policy #Bgg003708 less: provision for impairment 2012 ($) 2011 ($) 1,250,964 766,373 1,201,505 1,250,964 766,373 1,201,505 3,218,842 3,218,842 (3,218,842) (3,218,842) grenada co-operative Bank limited - certificate of deposit 414,240 400,000 8.
CASH AND CASH eQuiVALeNTS RBtt Bank grenada limited - current Account (i) - current Account (ii) Republic Bank (grenada) limited - current Account grenada co-operative Bank limited - current Account Bank of nova scotia - current Account first caribbean international Bank limited - current Account cash in transit cash floats petty cash 414,240 400,000 2012 ($) 2011 ($) 1,199 952,793 828,906 707,901 106,984 130,680 6,878 1,400 740 1,199 1,557,208 900,035 423,977 22,089 239,864 16,924 1,400 178 cash on hand and at bank 2,737,481 3,162,874 9.
CAPiTAL CONTRiBuTiON - GOVeRNMeNT OF GReNADA long-term national insurance Board less: current portion short-term Borrowings: 2012 ($) 2011 ($) 3,769,785 4,784,650 (1,095,219) (1,016,320) 2,674,566 3,768,330 national insurance Board - current portion 1,095,219 1,016,320 total borrowings 3,769,785 4,784,650 national insurance scheme: the loan bears interest at the rate of 7.5% per annum and is repayable over a period of eight (8) years by monthly instalments of $111,727.67.
the loan in secured by the guarantee of the govern- ment of grenada.

11.
11.

DeFeRReD iNCOMe Balance at 1st January, 2012 grant received during the year Amount transferred to income 2012 ($) 2011 ($) 2,222,488 - 2,222,488 100,728 2,186,799 136,417 2,323,216 100,728 Balance at 31st december, 2012 17,751,630 17,751,630 2012 ($) 2011 ($) Balance at 31st december, 2012 2,121,760 2,222,488 44 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 45 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 11.
DeFeRReD iNCOMe (continued) this relates to grants received as follows: z government of grenada z Basic needs trust fund z caricom/spain technical co-operation program these grants were used to develop water distribution and storage facilities and are being credited to income at the rate of 2.5% to 20% per annum, consistent with the rate charged for depreciation on related assets.

15.

DiReCT COST planning, design and construction production and quality sewerage transmission and distribution 12.
TRADe AND OTHeR PAYABLeS 16.

OTHeR iNCOMe trade payables Accrued expenses Accrued loan interest 2012 ($) 2011 ($) 35,843 48,545 1,730,541 2,641,707 7,746 8,848 1,774,130 2,699,100 Bad debts recovered deferred income recognized gain on sale of property, plant and equipment miscellaneous income 13.
ReTiReMeNT BeNeFiT OBLiGATiON 17. iMPAiRMeNT OF FiNANCiAL ASSeTS 2012 ($) 2011 ($) 1,364,208 6,808,729 645,286 7,427,874 1,491,818 6,571,278 688,468 7,693,236 16,246,097 16,444,800 2012 ($) 2011 ($) 302,503 100,728 59,845 935,384 49,156 100,709 75,934 378,424 1,398,460 604,223 2012 ($) 2011 ($) this represents provisions in the amount of $2,389,222 and $9,955,091 made for pension and gratuity respectively, for all permanent employees and management personnel with over twenty (20) years of continuous service.
An actuarial valuation in 2012 revealed that the Authority’s pen- sion liability as at July 1st, 2012 was $52.9 million.

14.

ReVeNue Water rates sewer rates service connection sales to ships sales from hydrant 46 NAWASA AnnuAl RepoRt 2012 2012 ($) 2011 ($) 25,571,232 25,767,729 2,285,111 2,286,432 904,971 185,373 5,897 859,458 249,808 3,392 28,952,584 29,166,819 impairment of British American company limited investments - 1,609,421 18.
FiNANCe COST interest on borrowings 2012 ($) 2011 ($) 362,028 420,847 NAWASA AnnuAl RepoRt 2012 47 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 19.

FiNANCiAL RiSK MANAGeMeNT 19.


FiNANCiAL RiSK MANAGeMeNT (continued) the Authority’s activities expose it to the following risk from the use of financial instruments: ii) other financial assets z credit risk z liquidity risk z currency risk z interest rate risk z operational risk risk management structure the Board of directors is responsible for the overall risk management approach and for approving the risk strategies, principles, policies and procedures.
day to day adherence to risk to risk prin- ciples is carried out by the management of the Authority in compliance with the policies approved by the Board of directors.

the Authority’s risk management policies are established to identify and analyse the risk faced by the Authority, to set appropriate risks limits and controls and to monitor risk and adherence to limits.

Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Authority’s activities.
the Authority through its training and management standards and procedures aims to develop a disciplined and constructive control environment, in which all employees understand their roles and obligations.

Credit risk credit risk is the risk of financial loss to the Authority if a customer or counter party to a finan- cial instrument fails to meet its contractual obligations, and arises principally from the Authority’s receivables from customers and its loans and receivable financial assets.
management of credit risk i) trade receivables concentration of credit risk with respect to trade receivables is small as the Authority’s customer base is large and unrelated, with no significant balances arising from a single economic or busi- ness sector or single entity or group of entities.

the Authority manages credit risk through the daily monitoring of trade receivables on an indi- vidual basis.

Where necessary, customers’ accounts are disconnected in order to reduce credit risk exposure.
With respect to credit risk arising from the other financial assets of the Authority, which comprise cash and cash equivalents and loans and receivables financial assets, the Authority’s exposure to credit risk arises from default of the counter-party.

the Authority seeks to hold its funds with financial institutions which management regards as sound and the market for investments are monitored regularly to ensure that returns are guaranteed.
exposure to credit risk the following table shows the maximum exposure to credit risk for the components of the state- ment of financial position.
trade and other receivables loans and receivables financial assets cash and cash equivalents Analysis of individually impaired financial assets: maximum exposure 2012 ($) 2011 ($) 12,879,758 11,552,560 414,240 2,737,481 400,000 3,162,874 16,031,479 15,115,434 carrying value provision for impairment net book value ($) ($) 2012 ($) 2011 ($) trade receivables 5,136,018 1,374,070 3,761,948 2,365,206 sundry debtors and prepayments 1,778,924 773,261 1,005,663 loans and receivables financial assets 3,218,842 3,218,842 - - - 48 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 49 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 19.
FiNANCiAL RiSK MANAGeMeNT (continued) 19.

FiNANCiAL RiSK MANAGeMeNT (continued) liquidity risk exposure to interest rate risk liquidity risk is the risk that the Authority will have difficulty in meeting towards its obligations to its financial liabilities.

the Authority is exposed to interest rate risk through the effect of fluctuations in the prevail- ing levels of interest rates on interest bearing financial assets and liabilities, including loans.
management of liquidity risk management of interest rate risk the Authority’s approach to managing liquidity is to ensure, as far as is possible, that it will always have sufficient liquidity to meet is liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses.
the Authority monitors its cash flow position on a daily basis and generally monitors its risk to a shortage of funds by considering planned and probable expenditures against projected cash inflows from operations.

Where possible the Authority utilizes surplus internal funds to finance its operations and ongoing projects.

the Author- ity also utilizes available credit facilities such as loans and overdraft facilities.
exposure to liquidity risk the table below analyses the Authority’s financial liabilities into relevant groupings based on the remaining period at the statement of financial position date to the contractual maturity date.

the Authority manages its interest rate exposure by borrowing funds at fixed rates.
operational risk operational risk is the risk of direct or indirect loss arising from a wide variety of causes associ- ated with the Authority’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regula- tory requirements including periodic adjustments of tariffs.

operational risks arise from all of the Authority’s operations.
the Authority’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Authority’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity.

the primary responsibility for the development and implementation of controls to address operational risk is assigned to senior management within each business unit.
this responsibility is supported by the development of overall standards for the management of operational risk in the following areas: < 1 year 1 to 5 years >5 years total z Requirements for appropriate segregation of duties, including the independent authorization Balance at 31st december, 2012 long-term borrowings trade and other payables short-term borrowings - 2,674,566 1,774,130 1,095,219 - - - 2,674,566 - 1,774,130 - 1,095,219 2,869,349 2,674,566 - 5,543,915 Balance at 31st december, 2011 long-term borrowings trade and other payables short-term borrowings - 3,768,330 2,699,100 1,016,320 - - - 3,768,330 - 2,699,100 - 1,016,320 3,715,420 3,768,330 - 7,483,750 interest rate interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctu- ate because of changes in market interest rates.
of transactions z Requirements for the reconciliation and monitoring of transactions z compliance with regulatory and other legal requirements z documentation of controls and procedures z Requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified z Requirements for the reporting of operational losses and proposed remedial action z development of contingency plans z training and professional development z ethical and business standards z Risk mitigation, including insurance where this is effective z periodic review of the tariff structure 50 NAWASA AnnuAl RepoRt 2012 NAWASA AnnuAl RepoRt 2012 51 NOTeS TO THe FiNANCiAL STATeMeNTS AT 31ST DeCeMBeR, 2012 21.
ADMiNiSTRATiVe AND OVeRHeAD eXPeNSeS 2012 ($) 2011 ($) - 11,951,104 14,883,467 Wages, salaries and allowances national insurance contributions pensions staff uniform staff benefits entertainment training electricity telephone Advertising and public relation stationery and postages subscription and donation insurance Repairs and maintenance motor vehicle expenses professional fees security directors’ fees and expenses office rent depreciation miscellaneous Bad debts Audit fees commission obsolete stock 52 NAWASA AnnuAl RepoRt 2012