Financial Reporting Entity
The Canadian River Municipal Water Authority was created on May 27, 1953, by the Texas legislature Acts 1953, 53rd Leg., Ch. 243, as amended, (previously Art. 8280-154). Its purpose is to supply water for municipal and industrial uses to member cities. Member cities include: Amarillo, Borger, Brownfield, Lamesa, Levelland, Lubbock, O’Donnell, Pampa, Plainview, Slaton and Tahoka. Each member city is represented by one or two persons on the Authority’s Board of Directors. The Authority’s sources of water are surface water from Lake Meredith and groundwater from Roberts County, Texas.
In 1991, GASB issued “Statement No. 14, The Financial Reporting Entity”, which established standards for defining and reporting on the financial reporting entity. The definition of the reporting entity is based primarily on the notion of financial accountability. The Authority is financially accountable for CRMWA Corporation (the Corporation), a not-for-profit corporation created in the State of Texas, authorized to operate in New Mexico to facilitate the construction and operation of the Salinity Control Project. The Corporation is presented in these financial statements as a blended component unit. The Corporation’s governing body is the same as the Authority’s. Transactions with other governmental entities consist of assessments to member cities for costs of operations, pumping energy and construction projects.