Municipal officials are very familiar with financial audits. State law requires all municipalities have an audit each year. But what about water audits?
Water audits are relatively new to South Carolina local governments. However with the state's ongoing drought condition and the high cost of meeting drinking water standards, water providers are looking for ways to make their systems more efficient. Every gallon of water not properly billed or lost because of a pipeline leakage represents a financial loss to the utility.
In addition, the state Department of Health and Environmental Control has instituted new monitoring procedures for water utilities. Previously, utilities could classify the difference between the amount of treated water produced and the amount billed as "unaccounted for water." SCDHEC now requires the utility to explain losses and implement loss control improvements when such losses are too high.
The goal of a water audit is to accurately determine the amount of water that is not accounted for in a water distribution system.
According to the American Water Works Association, "the audit typically traces the flow of water from the site of water withdrawal or treatment, through the water distribution system, and into customer properties."
"The audit evaluates the effectiveness of metering and meter reading systems, as well as billing, accounting and loss control programs," according to AWWA.
Water auditing is now mandatory in Georgia. Several other southeastern states are considering similar policies. In North Carolina, numerous utilities have conducted water audits and are using the information to identify ways to enhance utility revenue. The North Carolina State Water Infrastructure Commission established a water loss initiative, and several state funding agencies require utilities have a water loss control program established before providing grant funding.
Many utilities have implemented a best practice water auditing methodology developed jointly by the International Water Association and AWWA. "The IWA/AWWA Water Audit Method is effective because it features sound, consistent definitions for the major forms of water consumption and water loss encountered in drinking water utilities," according to AWWA.
Steven Cavanaugh, an engineer with Cavanaugh Associates, will discuss water auditing and loss control programs during the SC Utility Billing Association's Annual Meeting on March 6-8.