UOSA_CAFR2014_Final

UPPER OCCOQUAN SERVICE AUTHORITY
Regional Water Reclamation System, Centreville, VA
Upper Occoquan Service Authority is officially known as Upper Occoquan Sewage Authority
Comprehensive Annual Financial Report
FISCAL YEAR ENDING JUNE 30, 2014
2014

PREPARED BY THE FINANCE DEPARTMENT
UPPER OCCOQUAN SERVICE AUTHORITY
Regional Water Reclamation System, Centreville, VA
Upper Occoquan Service Authority is officially known as Upper Occoquan Sewage Authority
Comprehensive Annual Financial Report
FISCAL YEAR ENDING JUNE 30, 2014
2014

In 1971, following extensive studies and
public debate, the Virginia Water Control
Board, with the counsel and recommendations of
the Virginia Department of Health, adopted a bold
and innovative policy to protect a critical water
supply, the Occoquan Reservoir. The Occoquan
Policy mandated the creation of a regional agency,
the Upper Occoquan Service Authority (UOSA), to
provide state-of-the-art treatment for wastewater
generated in the Occoquan Watershed and an
independent organization, the Occoquan Watershed
Monitoring Laboratory, to continuously monitor
the watershed and provide advice on protective
measures for the Reservoir. Since that time, water
quality in the Occoquan Reservoir has steadily
improved, while wastewater reclamation at
UOSA has increased dramatically, in response to
tremendous population growth in UOSA’s service
territory. Today, after significant expansion, the
Millard H. Robbins, Jr. Regional Water Reclamation
Plant operates as one of the nation’s largest and
most successful facilities of its kind.
UOSA’s stewardship efforts continue – as we search
for better, more cost-efficient ways to renew
byproducts, recycle energy, and reclaim water. We
remain committed to doing all we can to protect
and restore the health of the Occoquan Watershed
and the entire ecosystem of the Chesapeake Bay,
while striving to inspire the next generation of
water industry leaders.

INTRODUCTORY SECTION
Letter of Transmittal .............................................................................................................................................. 1-5
Organizational Chart ................................................................................................................................................6
Directory of Board Members and Officials ........................................................................................................ 7
Certificate of Achievement for Excellence in Financial Reporting ................................................................ 8
FINANCIAL SECTION
Report of Independent Auditor ..................................................................................................................... 15-16
Management’s Discussion and Analysis ......................................................................................................... 19-27
Financial Statements
Statements of Net Position .......................................................................................................... 30-31
Statements of Revenues, Expenses and Changes in Net Position ............................................. 32
Statements of Cash Flows .................................................................................................................. 33
Notes to the Financial Statements ............................................................................................. 34-51
Required Supplementary Information
Schedule of Funding Progress - Virginia Retirement System ........................................................... 53
Schedule of Funding Progress - Other Postemployment Benefits (OPEB) ................................... 53
STATISTICAL SECTION (Unaudited)
Financial Trends
Schedule 1: Net Position by Component ....................................................................................... 57
Schedule 2: Changes in Net Position ............................................................................................... 57
Schedule 3: Operating Expenses ....................................................................................................... 58
Schedule 4: Nonoperating Revenues and Expenses ..................................................................... 59
Schedule 5: Expenses by Function .................................................................................................... 59
Revenue Capacity Information
Schedule 6: Operating Revenues by Source .................................................................................. 60
Schedule 7: Source of Wastewater Flow ........................................................................................ 60
Schedule 8: Annual Capital Contributions by Source .................................................................. 61
Debt Capacity Information
Schedule 9: Revenue Bond Coverage .............................................................................................. 62
Demographic and Economic Information
Schedule 10: Principal Employers ..................................................................................................... 63
Schedule 11: Demographic Statistics ............................................................................................... 64
Operating Information
Schedule 12: Authorized Full-Time Equivalents by Function ..................................................... 65
Schedule 13: Operating and Capital Indicators ............................................................................. 65
COMPLIANCE SECTION
Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements Performed
in Accordance With Government Auditing Standards ................................................................................. 69-70
TABLE OF CONTENTS
iii

INTRODUCTORY SECTION
RENEW
Ten years ago, folks at UOSA saw the
writing on the wall.The composted biosolids
generated as a byproduct of the water
reclamation process were getting harder and
harder to dispose of responsibly. Just as the
number of facilities willing to take this solid
waste were shrinking, hauling costs were on
the rise.And staff did not want to rely on
shipping UOSA’s biosolids to landfills.They
needed another solution.
That’s when they installed the first of UOSA’s
two pelletizers. Now, waste solids would
be run through the centrifuge, sent to the
dryer, and turned into granular, pea-shaped
pellets that could be distributed as a desirable
fertilizer, rather than simply hauled away. By
heating the biosolids, the pelletizing process
burns off pathogens and produces a safe, EPA
Certified Class-A/EQ (Exceptional Quality)
fertilizer, which is approved for “unrestricted”
use (meaning farmers, golf courses, and
gardeners can use it without any special
handling or environmental concerns).
In mid-2014, after installing a second dryer,
UOSA achieved its goal of producing nothing
but Class A/EQ pellets.According to Kevin
Gately, who works with the Biosolids
Pellet Program, hauling costs have been cut
significantly as a result.And the income UOSA
generates from its marketing and distribution
of biosolids (which ensures a steady demand
for the pellets throughout the year by
promoting UOSA’s fertilizer to blenders,
farmers, and others) helps to offset the
facility’s remaining solids handling fees.
Best of all, as Gately observes,“we’re taking a
waste product and turning it into something
very useful.”

We’re taking a
waste product
and turning
it into something
very useful.

T H I S P A G E I N T E N T I O N A L L Y L E F T B L A N K

1
I N T R O D U C T O R Y S E C T I O N
14631 COMPTON ROAD, CENTREVILLE, VIRGINIA 20121-2506 (703) 830-2200
Leader in Water Reclamation and Reuse
Upper Occoquan Service Authority
November 10, 2014
Board of Directors
Upper Occoquan Service Authority
14631 Compton Road
Centreville, Virginia 20121-2506
Dear Members of the Board:
The Comprehensive Annual Financial Report (CAFR) of the Upper Occoquan Service Authority (UOSA) for
the fiscal year ended June 30, 2014, is submitted herewith. This CAFR has been prepared by UOSA’s Finance
Department in accordance with accounting principles generally accepted in the United States of America and
conforms to the requirements of the Governmental Accounting Standards Board (GASB).
Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation,
including all disclosures, rests with UOSA. We believe the data, as presented, are accurate in all material respects;
that the data are presented in a manner designed to fairly set forth the financial position and results of the operations
of UOSA as measured by the financial activity of its various accounts; and that all disclosures necessary to enable the
reader to gain the maximum understanding of UOSA’s financial affairs have been included.
This letter of transmittal is designed to complement the Management’s Discussion and Analysis (MD&A) and
should be read in conjunction with it. The Authority’s MD&A can be found immediately following the report of
independent auditor.
A brief history of UOSA, its fiscal operations, and selected accomplishments are presented below.
Organization and Function
UOSA was formed on March 3, 1971, by concurrent resolution of the governing bodies of Fairfax and Prince
William Counties and the Towns (now Cities) of Manassas and Manassas Park. UOSA’s discharge flows via Bull Run
to the Occoquan Reservoir, a major water supply source for approximately 2 million people in the Northern Virginia
communities of Fairfax, Loudoun, Prince William and Alexandria served by the Fairfax County Water Authority
(FCWA).
Studies in 1969-1970 concluded that inadequately treated sewage discharged by eleven secondary treatment
plants in the Occoquan Watershed was largely responsible for the serious water quality problems in the Occoquan
Reservoir. To remedy the problems, the Virginia State Water Control Board (SWCB) (now the Department of
FAIRFAX COUNTY / PRINCE WILLIAM COUNTY / CITY OF MANASSAS / CITY OF MANASSAS PARK
Charles P. Boepple
Executive Director
Michael D. Reach
Deputy Executive Director

2
U P P E R O C C O Q U A N S E R V I C E A U T H O R I T Y
Environmental Quality) in 1971 adopted a comprehensive policy for the Occoquan Watershed (Occoquan Policy).
A principal requirement of the Occoquan Policy was the construction of a regional water reclamation facility to
replace the eleven existing treatment plants. UOSA was created to address this mandate.
UOSA was created under the provisions of the Virginia Water and Waste Authorities Act (Chapter 51, Title 15.2, Code
of Virginia of 1950 as amended) to construct, finance and operate the regional water reclamation facility mandated by
the Occoquan Policy. The first of nine construction contracts was awarded in early 1974 and UOSA began operation
of the treatment facility on June 26, 1978. The National Pollutant Discharge Elimination System (NPDES) permit
issued to UOSA by the SWCB and the United States Environmental Protection Agency (EPA) contained some of
the most stringent discharge limits in the United States. UOSA has consistently met these limits and, as a result,
eliminated wastewater as a source of pollution in the Occoquan Watershed. Further, the water reclaimed by UOSA
contributes significantly to the water supply of Northern Virginia. Tenacious pursuit of an enhanced environment is
a continuous activity for UOSA.
UOSA is a public body politic, corporate, and an instrumentality of the Commonwealth of Virginia. The governing
body of UOSA is an eight-person Board of Directors consisting of two members appointed for four-year terms by
the governing body of each member Political Subdivision. The UOSA Executive Director is responsible to the Board
of Directors for the day-to-day operations of UOSA. The organization is comprised of four Divisions: Finance,
Operations and Maintenance, Treatment Process and Technical Services.
Reporting Entity
This CAFR includes all funds and accounts of UOSA. As described above, UOSA provides wastewater treatment
and water reclamation services to four Political Subdivisions on a wholesale basis. In accordance with accounting
principles generally accepted in the United States of America for governmental entities, there are no component
units to be included in the reporting entity.
Economic Condition and Outlook
UOSA’s service area is located in the Greater Washington D.C. metropolitan area, which is ranked as the fifth largest
regional economy in the United States. The Washington D.C. metropolitan area provides close proximity to the
federal government and continues to be a premier location for corporate headquarters. It is also the home to twenty
Fortune 500 company headquarters. There have been five major corporate headquarters relocations to the area since
2008 - CSC, Hilton Worldwide, Volkswagen Group of America, Northrop Grumman and SAIC. Other industry
leaders located within the Political Subdivisions include Booz Allen Hamilton, Micron Technology, Lockheed
Martin, General Dynamics and Inova Health System.
The Greater Washington D.C. area unemployment rate is consistently below the national average and has the
highest median household income in the United States. The area has a highly-educated workforce and is ranked
number one among major metropolitan areas for the percent of population with graduate or professional degrees.
While the U.S. government is a significant employer and customer of services, which provides a stable economic
foundation, in recent years the region has become one of the country’s leaders in Professional and Business Services.
As a result, the economy is increasingly fueled by private-sector growth. The economic forecast from the Center
for Regional Analysis at George Mason University indicates that the region’s economy will continue to grow, but
at a slower pace than the past few years due to the estimated impact of lower federal spending. Residential housing
values have continued to increase as the residential real estate market has improved.
UOSA, with its expansion to 54 million gallons per day of capacity, continues to supply essential wastewater
reclamation services to the four Political Subdivisions in the service area.

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Major Initiatives
To meet future needs resulting from increases in population and associated wastewater flows in its service area,
UOSA developed an expansion program, Project 54, which included a variety of major additions and improvements
to its wastewater treatment and delivery system.
Project 54 included a two phased expansion of UOSA’s treatment capacity from 27 million gallons per day (mgd)
to 54 mgd. The second phase of construction, Contract 54, incorporated process modifications and improved
technologies that resulted in facilities that were easier to operate and maintain. Contract 54 was completed and
UOSA received an operating permit to process 54 million gallons of wastewater a day beginning February 1, 2005.
UOSA’s Capital Improvement Plan (CIP) identifies additional projects that have either been completed or
programmed to be completed over the next seven years. Primary project categories included the expansion of
UOSA’s delivery system to accommodate full build-out of the UOSA service area, a nutrient reduction project to
be able to comply with regulations designed to protect and restore the Chesapeake Bay and miscellaneous plant and
hydraulic improvements including renewal and replacement projects designed to properly preserve UOSA’s assets
and infrastructure as they age. UOSA’s Capital Improvement Plan is funded by bond issuances, low interest loans
and public grants.
Financial Controls
The Director of Finance is responsible for establishing and maintaining an adequate internal control structure. In
fulfilling this responsibility, estimates and judgments are required to assess the expected benefits and related costs of
control procedures. The objectives of the control system are to provide UOSA with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use or disposition and are recorded properly
to permit the preparation of financial statements in accordance with accounting principles generally accepted in the
United States of America. All internal control evaluations occur within this framework. UOSA’s internal control
structure adequately safeguards assets and provides reasonable assurance of proper recording of financial transactions.
UOSA’s accounting records are maintained on the accrual basis. Revenues are recognized in the accounting period
in which they are earned and become measurable; expenses are recognized in the period incurred, if measurable.
The accounting and reporting policies conform to accounting principles generally accepted in the United States of
America and reflect practices appropriate for a governmental enterprise.
The UOSA Board of Directors adopts an annual operating budget based on projected wastewater flows as required
by the Restated Service Agreement between UOSA and the four member Political Subdivisions and the Restated
Agreement of Trust, as supplemented, administered by U.S. Bank National Association, as Trustee. The two
documents provide the basis for debt service payments. Budgetary control is maintained at the budget sub-function
level by a review of revenues and expenses at the staff management level. A review of the sub-function revenues and
expenses compared to budget is conducted with the Board of Directors on a quarterly basis. Appropriations lapse at
year end and may not be carried forward to the next year, except for funds appropriated for multi-year construction
projects. After adoption, increases or decreases in the budget may be made only upon Board approval. The budget
for fiscal year 2014 is as originally adopted and was not amended during the year.

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Long-Term Financial Planning
UOSA’s Board of Directors endorsed a Capital Improvement Plan (CIP) Update in January 2014 that addresses the
Authority’s capital requirements through 2021. The CIP provides for treatment plant capacity that meets regulatory
requirements and provides for future growth, provides for a completely updated and renewed collection and delivery
system sized for build-out, and provides for the renewal and replacement of aging plant assets. The Plan of Finance
projects financing through 2021 to ensure funding is available to meet capital improvement needs. Capital projects
projections and the associated Plan of Finance are updated on an annual basis.
Currently a bond issue is anticipated for late 2015 to fund the next phase of the CIP, with additional bond issues
planned for 2017 and 2019.
As part of a 2013 bond refunding, Standard & Poor’s reaffirmed its rating on the Authority’s outstanding revenue
bonds at AAA, the highest rating that can be awarded. In addition, Fitch’s and Moody’s both reaffirmed their
respective ratings of AA+ and Aa1 as part of the refunding.

Standard & Poor’s Fitch’s Moody’s
Revenue Bonds AAA AA+ Aa1
Each of the four Political Subdivisions is required by the Restated Service Agreement to pay its share of the debt
service. The shares of the Political Subdivisions are based on allocated capacity as a percentage of the total capacity
allocated to the four participating Political Subdivisions or as otherwise identified for specific projects within UOSA’s
Service Agreement. Any participating Political Subdivision may reallocate any portion of its allocated plant capacity to
any other participating Political Subdivision on such terms as may be mutually agreeable, subject to certain approvals.
Completion of the second phase of the Project 54 expansion program (Contract 54) provided an increase in capacity
from 32 mgd to 54 mgd. Allocation of the 54 mgd capacity, which was effective February 1, 2005, is shown in Table
1 below.
Table 1
Total Percentage Of
Political Subdivision Capacity Allocation Total Capacity
Fairfax County 27.5999 mgd 51.1109%
Prince William County 15.7971 mgd 29.2539%
City of Manassas 7.6893 mgd 14.2395%
City of Manassas Park 2.9137 mgd 5.3957%
Total 54.0000 mgd 100.0000%
Independent Audit
The Restated Service Agreement requires an annual independent audit of UOSA’s financial records and transactions
by an independent certified public accountant selected by the Audit Committee. This requirement has been met and
the report of the independent auditor is included in the Financial Section of this Report.

5
Awards
GFOA Certificate of Achievement for Excellence in Financial Reporting – The Government Finance Officers
Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in
Financial Reporting to UOSA for its Comprehensive Annual Financial Report (CAFR) for the fiscal year ended
June 30, 2013. The Certificate of Achievement is the highest form of recognition for excellence in state and local
government financial reporting. This is the twenty-fifth consecutive year UOSA has received the Certificate of
Achievement for Excellence in Financial Reporting.
To be awarded a Certificate of Achievement, UOSA published an easily readable and efficiently organized CAFR,
whose contents conform to program standards. This report satisfied both accounting principles generally accepted
in the United States of America and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe this FY 2014 report continues to
conform to the Certificate of Achievement program requirements, and it is being submitted to the GFOA to
determine its eligibility for a certificate.
NACWA Peak Performance Award – The National Association of Clean Water Agencies (NACWA) awarded
a Platinum Peak Performance Award to UOSA for 2013. NACWA’s National Environmental Achievement
Awards Program annually recognizes individual member agencies that have made outstanding contributions to
environmental protection and wastewater management by consistently meeting all National Pollution Discharge
Elimination System (NPDES) permit limits. This Platinum Peak Performance Award recognized UOSA’s 100%
NPDES permit compliance for nine consecutive years.
Acknowledgements
The preparation of this Comprehensive Annual Financial Report for FY 2014 was accomplished by the staff of
the Finance Department of the Finance Division. We would like to express our appreciation to all members of the
Finance Department who assisted with and contributed to its preparation.
Respectfully Submitted,

Charles P. Boepple Paulette E. Myers
Executive Director Director of Finance

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Board of Directors
Office of the
Executive Director
Regulatory AffairsHuman Resources
Safety
Operations &
Maintenance Division
Finance
Division
Treatment Process
Division
Technical Services
Division
Delivery Systems
Electrical
Systems
Facilities
Maintenance
Engineering
Capital
Improvements
Information
Management
Laboratory
Operations
Support
Liquid
Processing
Solids
Processing
Industrial
Controls
Mechanical
Systems
Support Systems
Administration
Finance
Purchasing
Organizational Chart
June 30, 2014

7
Directory of Board Members and Officials
June 30, 2014
Board of Directors and Officers Position Political Subdivision/Affiliation
John M. Weber Chairman City of Manassas
John W. di Zerega Vice-Chairman Fairfax County
Dean E. Dickey Secretary Prince William County
Shahram Mohsenin Treasurer Fairfax County
William J. Becker Member Prince William County
William C. Boyce, Jr. Member City of Manassas
Jeanette M. Rishell Member City of Manassas Park
James A. Johnson, Jr. Member City of Manassas Park
Paulette E. Myers Assistant Treasurer UOSA Staff
June A. Mahoney Assistant Secretary UOSA Staff
Officials
Charles P. Boepple Executive Director
Michael D. Reach Deputy Executive Director

8

UOSA has always
been a highly
advanced plant,
and cogeneration
helps keep us
on that path.

FINANCIAL SECTION
RECYCLE
A new cogeneration system recently became
operational at UOSA as a part of ongoing
efforts to make operations as efficient, cost-
effective, and environmentally sustainable as
possible.“UOSA has always been a highly
advanced plant, and cogeneration helps keep
us on that path,” suggests Doug Hague,
who has worked on the system since its
inception.“This project represents just one
of many initiatives UOSA has undertaken to
advance the water treatment process, while
decreasing costs.”
As Hague explains, cogeneration operates a
bit like running coolant through your car’s
engine and exhaust to capture and remove
heat.When the Anaerobic Digesters are
heated as part of the solids stabilization
process, they produce a biogas.This digester
gas is captured and cleaned of contaminants,
then burned in the engine that drives the
generator.The resulting electricity is added
to the UOSA power grid, helping to lower
UOSA’s cost of purchased electricity by
reducing the amount of power required from
the major utility. The cogeneration system
also captures heat from the engine’s exhaust
gases – as well as from the engine’s jacket
water – and then applies this thermal energy
to help heat the Anaerobic Digesters.
In addition, cogeneration helps UOSA avoid
exceeding EPA limits on the amount of
digester gas it releases to the atmosphere,
without having to “flare off” the stack gas.
Instead, the exhaust gasses are captured and
applied to the recarbonation stage of the
water reclamation process, helping to reduce
the pH in the wastewater back to neutral to
avoid harming local wildlife when that water
is released into UOSA’s reservoir.

15
F I N A N C I A L S E C T I O N

16

MANAGEMENT’SDISCUSSIONANDANALYSIS

19
MANAGEMENT’S DISCUSSION AND ANALYSIS
(Unaudited)
The following discussion and analysis provides an overview of the financial activities of the Upper Occoquan
Service Authority (UOSA) for the fiscal years ended June 30, 2014 and 2013. This information should be read in
conjunction with the letter of transmittal and the basic financial statements.
Financial and Deferred Outflow of Resources Highlights
• Assets and deferred outflows of resources exceeded liabilities by $85.2 million at June 30, 2014 compared to
$90.2 million at June 30, 2013.
• The Authority’s total net position decreased by $5.0 million, or 5.5%, for fiscal year 2014 compared to a decrease
of $6.5 million, or 6.8%, for fiscal year 2013.
• The decrease in net position for the current year is primarily attributable to a $10.4 million decrease in net
investment in capital assets that was partially offset by increases in restricted net position of $5.4 million.
• Fiscal year 2014 operating revenues increased by 4.5% to $28.1 million while operating expenses increased by
5.7% to $52.7 million, which includes depreciation expense of $24.5 million.
• Capital contributions from the Political Subdivisions were $14.0 million and $10.7 million for fiscal year
2014 and 2013, respectively. Grant revenues were $0.8 million and $1.7 million for fiscal year 2014 and
2013, respectively.
Overview of the Financial Statements
UOSA operates as a single enterprise fund (a type of proprietary fund). The Authority’s basic financial statements
are presented using the accrual basis of accounting, therefore revenues are recognized when they are earned and
expenses are recognized when a liability is incurred. The Comprehensive Annual Financial Report is presented in
four sections: Introductory, Financial, Statistical and Compliance. This discussion and analysis is provided to serve as
an introduction to UOSA’s basic financial statements: Statements of Net Position, Statements of Revenues, Expenses
and Changes in Net Position, Statements of Cash Flows, and the accompanying Notes to the Financial Statements.
The Statements of Cash Flows are prepared using the direct method.

20
Financial Analysis of UOSA’s Financial Position and Results of Operations
The table presented below provides a summary of UOSA’s financial position and operations for FY 2014 and FY 2013.
Condensed Statements of Net Position
June 30,
Change
2014 2013 Amount %
Assets
Current & other assets $ 108,673,355 $ 119,478,459 $ (10,805,104) -9.0%
Capital assets, net 507,540,346 508,262,309 (721,963) -0.1%
Total assets 616,213,701 627,740,768 (11,527,067) -1.8%
Deferred outflows
of resources 8,642,846 10,636,054 (1,993,208) -18.7%

Liabilities
Current liabilities 32,513,909 31,855,306 658,603 2.1%
Long-term liabilities 507,122,156 516,311,563 (9,189,407) -1.8%
Total liabilities 539,636,065 548,166,869 (8,530,804) -1.6%

Net position
Net investment in capital assets 30,369,861 40,722,834 (10,352,973) -25.4%
Restricted 53,939,075 48,554,724 5,384,351 11.1%
Unrestricted 911,546 932,395 (20,849) -2.2%
Total net position $ 85,220,482 $ 90,209,953 $ (4,989,471) -5.5%
During FY 2014, net position decreased by $4,989,471; significant factors attributable to the decrease were as follows:
• Net investment in capital assets decreased by $10,352,973, primarily due to a decrease in Restricted Cash and
Cash Equivalents resulting from the planned spend down of construction funds for capital projects. This was
partially offset by a decrease in outstanding debt.
• Restricted net position increased by $5,384,351, primarily due to an increase in Restricted Investments resulting
from the addition of the 2013B Debt Service Reserve Fund of $3,773,500 and increases to principal payments
for phasing in of the 2010 and 2013 Series bonds.
• Unrestricted net position decreased by $20,849 as a result of increases in Accrued Salaries and Benefits, Net
Pension Obligation and Compensated Absences Payable, partially offset by a decrease in Accounts Payable.
(Unaudited)

21
The table presented below provides a summary of UOSA’s financial position and operations for FY 2013 and FY 2012.
Condensed Statements of Net Position
June 30,
Change
2013 2012 (Restated) Amount %
Assets
Current & other assets $ 119,478,459 $ 138,942,084 $ (19,463,625) -14.0%
Capital assets, net 508,262,309 491,298,397 16,963,912 3.5%
Total assets 627,740,768 630,240,481 (2,499,713) -0.4%
Deferred outflows
of resources 10,636,054 7,348,912 3,287,142 44.7%

Liabilities
Current liabilities 31,855,306 35,827,233 (3,971,927) -11.1%
Long-term liabilities 516,311,563 505,006,524 11,305,039 2.2%
Total liabilities 548,166,869 540,833,757 7,333,112 1.4%

Net position
Net investment in capital assets 40,722,834 56,169,422 (15,446,588) -27.5%
Restricted 48,554,724 39,704,788 8,849,936 22.3%
Unrestricted 932,395 881,426 50,969 5.8%
Total net position $ 90,209,953 $ 96,755,636 $ (6,545,683) -6.8%
During FY 2013, net position decreased by $6,545,683; significant factors attributable to the decrease were as follows:
• Net investment in capital assets decreased by $15,446,588, primarily due to an increase in outstanding principal
of related debt, net, while the increase in capital assets related to UOSA’s Capital Improvement Program was
funded by debt proceeds on hand as of July 1, 2012.
• Restricted net position increased by $8,849,936, largely due to an increase in restricted investments resulting
from the addition of the 2013A Debt Service Reserve fund of $10,162,500 offset by a decrease in debt service
accrued interest payable as a result of the 2005 Series bond refunding.
• Unrestricted net position increased by $50,969 as a result of an increase in Cash and Cash Equivalents
offset by increases in UOSA’s Landfill Closure and Postclosure Obligation, Net Pension Obligation and
Accounts Payable.
(Unaudited)

22
Revenues and Expenses
The table that follows summarizes the changes in revenues and expenses for UOSA between FY 2014 and FY 2013.
Condensed Statements of Revenues, Expenses and Change in Net Position
For the years ended June 30,
Change
2014 2013 Amount %
Operating Revenue $ 28,140,951 $ 26,918,771 $ 1,222,180 4.5%
Operating Expenses
Operations 28,179,836 26,744,183 1,435,653 5.4%
Depreciation 24,512,910 23,101,920 1,410,990 6.1%
Total operating expenses 52,692,746 49,846,103 2,846,643 5.7%

Operating loss (24,551,795) (22,927,332) (1,624,463) -7.1%

Nonoperating revenues, net 4,722,304 4,011,892 710,412 17.7%
Capital contributions 14,840,020 12,369,757 2,470,263 20.0%
Change in net position (4,989,471) (6,545,683) 1,556,212 -23.8%
Total net position,
beginning of year 90,209,953 96,755,636 (6,545,683) -6.8%
Total net position,
end of year $ 85,220,482 $ 90,209,953 $ (4,989,471) -5.5%
The table that follows summarizes the changes in revenues and expenses for UOSA between FY 2013 and FY 2012.
Condensed Statements of Revenues, Expenses and Change in Net Position
For the years ended June 30,
Change
2013 2012 (Restated) Amount %
Operating Revenue $ 26,918,771 $ 26,284,637 $ 634,134 2.4%
Operating Expenses
Operations 26,744,183 26,100,007 644,176 2.5%
Depreciation 23,101,920 21,632,622 1,469,298 6.8%
Total operating expenses 49,846,103 47,732,629 2,113,474 4.4%

Operating loss (22,927,332) (21,447,992) (1,479,340) -6.9%

Nonoperating revenues, net 4,011,892 8,953,289 (4,941,397) -55.2%
Capital contributions 12,369,757 13,064,440 (694,683) -5.3%
Change in net position (6,545,683) 569,737 (7,115,420) -1248.9%
Restated net position,
beginning of year 96,755,636 96,185,899 569,737 0.6%
Total net position,
end of year $ 90,209,953 $ 96,755,636 $ (6,545,683) -6.8%
(Unaudited)

23
Operating Revenue
Operating revenue is derived primarily from billings to the Political Subdivisions for treatment of sewage. The
billings to the four member Political Subdivisions are based on the approved budget and actual monthly flows.
Current Year. Compared to 2013, operating revenue increased by $1,222,180, net of an $898,133 credit to the
political subdivisions for the FY 2014 Operations and Maintenance budget surplus. The variance was due primarily
to increases in operating costs.
Prior Year. Compared to 2012, operating revenue increased by $634,134, net of a $1,924,869 credit to the
political subdivisions for the FY 2013 Operations and Maintenance budget surplus. The variance was due primarily
to increases in operating costs.
Operating Expenses
Operating expenses reflect the cost of services associated with the operation of the treatment plant and delivery systems.
Current Year. Operations expenses increased by $1,435,653 compared to 2013. The increase was due to higher
personnel costs from annual merit increases and health insurance premium increases as well as higher requirements
for plant maintenance and increased chemical costs due to higher flows than planned. This was partially offset
by lower energy costs for electrical power and natural gas due to staff initiatives to reduce contract pricing and
decrease consumption.
Prior Year. Operations expenses increased by $644,176 compared to 2012. The increase was due to higher labor
costs from VRS rate increases for retirement and life insurance, and health insurance cost increases. This was partially
offset by lower energy costs for electrical power and natural gas due to staff initiatives to reduce contract pricing
and decrease consumption.
Nonoperating Revenues
Current Year. Nonoperating revenues increased by $710,412 in FY 2014 due to a reduction in bond issuance costs
and asset disposals, partially offset by a decrease in revenue in excess of expenses from restricted accounts.
Prior Year. Nonoperating revenues decreased by $4,941,397 in FY 2013 due to lower grant revenues for the Nutrient
Cap (P1NR) Project, which is nearing completion, a reduction in the Build America Bond Subsidy resulting from
sequestration and a loss on asset disposals.
2013
$30
$25
$20
$15
$10
$5
$0
Operating Revenue
Revenues(Inmillions)
Thousands
Principal
Existing Annual Debt Service
Interest
Contributions
2012 2013
$30
$25
$20
$15
$10
$5
$0
Operating Expenses
Expenses(Inmillions)
Depreciation
2012
$40,000
2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
2014 2014

24
Capital Assets
At the close of FY 2014, UOSA had $507,540,346 invested in capital assets. This amount represents a net decrease
of $721,963 or less than 1% under FY 2013.
Capital Assets at June 30,
(net of accumulated depreciation)
Change
2014 2013 Amount %
Land $ 7,203,612 $ 7,203,612 $ - 0.0%
Treatment Plant and Reservoir 332,480,571 301,639,027 30,841,544 10.2%
Interceptor Sewers 53,081,171 45,310,634 7,770,537 17.1%
Pumping Stations 94,539,905 98,489,063 (3,949,158) -4.0%
Mobile Equipment 523,961 562,632 (38,671) -6.9%
Office Furniture and Equipment 907,137 1,043,993 (136,856) -13.1%
Vehicles 451,080 513,283 (62,203) -12.1%
Construction in Progress 18,352,909 53,500,065 (35,147,156) -65.7%
Totals $ 507,540,346 $ 508,262,309 $ (721,963) -0.1%
Major additions in FY 2014, at cost, included:
Treatment Plant and Reservoir:
Nutrient Compliance and Cogeneration Improvements and assets placed in service
(removed from Construction in Progress) $48,471,984
Construction in Progress:
Plant and delivery system expansion and improvements 15,652,355
Interceptor Sewers:
Liberia Interceptor Upgrade 8,254,719
Furniture and Equipment:
IMS Infrastructure Upgrade 175,471
Vehicles:
Fleet Vehicles 75,387
This information should be read in conjunction with note 4 to the audited financial statements in order to obtain
more detailed information on UOSA’s capital assets.
(Unaudited)

25
At the close of FY 2013, UOSA had $508,262,309 invested in capital assets. This amount represents a net increase
of $16,963,912 or 3.5% over FY 2012.
Capital Assets at June 30,
(net of accumulated depreciation)
Change
2013 2012 Amount %
Land $ 7,203,612 $ 7,203,612 $ - 0.0%
Treatment Plant and Reservoir 301,639,027 283,798,616 17,840,411 6.3%
Interceptor Sewers 45,310,634 35,121,038 10,189,596 29.0%
Pumping Stations 98,489,063 63,303,013 35,186,050 55.6%
Mobile Equipment 562,632 628,666 (66,034) -10.5%
Office Furniture and Equipment 1,043,993 1,201,187 (157,194) -13.1%
Vehicles 513,283 557,441 (44.158) -7.9%
Construction in Progress 53,500,065 99,484,824 (45,984,759) -46.2%
Totals $ 508,262,309 $ 491,298,397 $ 16,963,912 3.5%
Major additions in FY 2013, at cost, included:
Treatment Plant and Reservoir:
Primary Clarifiers, Carbon Regeneration Furnace and assets placed in service
(removed from Construction in Progress) $33,865,368
Construction in Progress:
Plant and delivery system expansion and improvements 33,524,639
Pumping Stations:
Flat Branch Pump Station Phase II Upgrade 24,229,358
Winter’s Branch Pump Station Upgrade 11,574,048
Interceptor Sewers:
Winter’s Branch Force Main Upgrade 5,144,731
Flat Branch Interceptor Upgrade 5,041,153
Furniture and Equipment:
IMS Infrastructure Upgrade 164,295
Vehicles:
Fleet Vehicles 83,358
This information should be read in conjunction with note 4 to the audited financial statements in order to obtain
more detailed information on UOSA’s capital assets.
(Unaudited)

26
Debt Administration
Current Year. At June 30, 2014, the total principal balance due on UOSA’s outstanding debt was $514,897,000
compared to $521,752,000 at June 30, 2013. The decrease in outstanding debt from FY2013 is equal to
$6,855,000, which reflects a reduction in bonds payable of $46,420,000, partially offset by an increase in loans
payable from FY2013 of $39,565,000.
At June 30, 2014, the total outstanding bonds payable balance was $459,530,000. The decrease from FY 2013
reflects the defeasance of the 2003 Series Bonds and debt retirement of the 2004 Series Bonds.
At June 30, 2014, the total outstanding loan balance was $55,367,000. The increase consisted of loan proceeds
from the 2013B Series loan plus additional draws for the VRA (2011A & B) loans partially offset by principal
payments for the VRA loans.
Prior Year. At June 30, 2013, the total principal balance due on UOSA’s outstanding debt was $521,752,000
compared to $505,699,000 at June 30, 2012. The increase in outstanding debt from FY2012 is equal to
$16,053,000, which reflects an increase in bonds payable of $8,850,000 and an increase in loans payable from
FY2012 of $7,203,000.
At June 30, 2013, the total outstanding bonds payable balance was $505,950,000. The increase reflects the issuance
of the 2013A Series Bonds, the defeasance of the 2005 Series Bonds, and debt retirements of the 2003 Series Bonds
and 2004 Series Bonds.
At June 30, 2013, the total outstanding loan balance was $15,802,000. The increase consisted of additional draws
for the VRA loans.
This information should be read in conjunction with the transmittal letter and note 5 to the audited financial
statements in order to obtain more detailed information on UOSA’s long-term debt.
(Unaudited)
2013
$30
$25
$20
$15
$10
$5
$0
Operating Revenue
Revenues(Inmillions)
Thousands
Principal
Existing Annual Debt Service
Interest
Contributions
2012 2013
$30
$25
$20
$15
$10
$5
$0
Operating Expenses
Expenses(Inmillions)
Depreciation
2012
$40,000
2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2043
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
2014 2014

27
Economic Factors and Next Year’s Budget
• The Authority’s adopted Annual Budget for FY15 is $67.8 million and is comprised primarily of $35.0 million
(51.6%) in capital financing costs, $28.7 million (42.3%) in operating expenses, and $4.1 million (6.1%) in
reserve maintenance expenses. The total represents a decrease of $647,190 or 0.95% from the FY14 budget.
The decrease is primarily due to Debt Service bond refundings for the 2005 and 2003 Series bonds partially
offset by modest increases for Operations and Maintenance and Reserve Maintenance Budgets.
• The average daily flow projection for FY15 is 33.2 million gallons a day (mgd). This represents an increase of
0.40 mgd or 1.22% over the FY14 budget.
• The Authority’s Capital Improvements Program (CIP) includes $186 million in forecasted capital projects for
plant renewal and improvements, delivery system improvements and expansion, and nutrient removal through
2021. Estimated spending for CY15 is $15.9 million.
• The 2013B Series Bonds refunded the 2003 Series Bonds in November 2013; resulting in gross debt service
savings of $4.6 million. The 2003 Series Bonds become callable in October 2013 and were refunded using a
direct bank loan as an alternative to a public offering.
• The Authority is considering an advanced refunding for all or part of the 2007A Series Bonds and all or part of
the 2007B Series Bonds in December 2014 with the bonds callable for redemption on July 1, 2017.
• Due to recent bond refundings and remaining funds available, the next bond issuance has been deferred to late
2015 with additional bond issuances planned for 2017 and 2019, which will fund CIP through 2021.
• The FY15 budget reflects efforts to reduce costs by securing fixed pricing for Treatment Plant Electrical Power,
reducing consumption through the recent incorporation of high efficiency blowers, the startup of a new
cogeneration facility that will produce power from digester gas and more energy efficient pump stations.
• UOSA’s favorable loss experience and risk management efforts resulted in a continuation of the 5.0% premium
reduction from VML Insurance for Liability, Automobile and Public Officials Liability Insurance and a 2.0%
premium credit as a result of the Authority’s favorable loss ratio.
Contacting UOSA’s Financial Management
This financial report is designed to provide a general overview of UOSA’s finances to all interested parties. Questions
about this report or requests for additional financial information should be addressed to UOSA’s Director of Finance
at the Upper Occoquan Service Authority, 14631 Compton Road, Centreville, VA 20121-2506, or by telephone at
(703) 830-2200, or visit the Authority’s website at www.uosa.org.
(Unaudited)

30
The accompanying notes are an integral part of these statements.
ASSETS 2014 2013
CURRENT ASSETS
Cash and cash equivalents (note 1) $ 7,405,744 $ 7,222,436
Accounts receivable (notes 1 and 2) 367,286 384,010
Inventory 3,425,234 3,560,499
Prepaid expenses 148,722 112,387
Restricted assets (notes 1 and 3):
Cash and cash equivalents (note 1) 59,492,560 74,488,780
Deposits - 5,800
Accounts receivable 1,315,065 1,229,260
Reserve maintenance receivable 2,192,780 1,805,119
Accrued interest receivable 101,250 102,430
Total Current Assets 74,448,641 88,910,721
NONCURRENT ASSETS
Restricted assets (notes 1 and 3):
Investments (note 1) 32,424,714 28,767,738
Arbitrage rebate receivable (note 10) 1,800,000 1,800,000
Capital assets (notes 1 and 4):
Utility plant and equipment 799,756,291 743,069,671
Other 9,203,692 9,048,654
Accumulated depreciation (note 1 and 4) (326,976,158) (304,559,693)
Land 7,203,612 7,203,612
Construction-in-progress 18,352,909 53,500,065
Capital assets, net 507,540,346 508,262,309
Total Noncurrent Assets 541,765,060 538,830,047
TOTAL ASSETS $ 616,213,701 $ 627,740,768
DEFERRED OUTFLOW OF RESOURCES (note 1)
Deferred amount on refunding $ 8,642,846 $ 10,636,054
STATEMENTS OF NET POSITION
June 30, 2014 and 2013

31
LIABILITIES 2014 2013
CURRENT LIABILITIES
Accounts payable and accrued liabilities $ 5,785,666 $ 6,444,656
Accrued salaries and benefits 817,439 553,728
Accrued bond interest payable (note 5) 9,996,433 9,910,543
Accrued loan interest payable (note 5) 543,388 277,498
Contract retainage payable 1,097,316 1,752,679
Income received in advance 2,220 1,260
Revenue bonds payable, net (note 5) 10,002,975 11,117,281
Virginia Resources Authority (VRA) loans payable (note 5) 789,400 235,860
Loans payable, net (note 5) 1,795,000 -
Compensated absences payable 1,684,072 1,561,801
Total Current Liabilities 32,513,909 31,855,306
LONG-TERM LIABILITIES
Landfill closure and postclosure obligation (note 9) 3,873,566 3,812,149
Contract retainage payable 20,284 445,280
Revenue bonds payable, net (note 5) 448,768,865 495,078,246
VRA loans payable (note 5) 16,842,595 15,565,994
Loans payable, net (note 5) 35,940,000 -
Compensated absences payable 347,277 316,432
Net other postemployment benefit obligation (note 1) 1,329,569 1,093,462
Total Long-term Liabilities 507,122,156 516,311,563
TOTAL LIABILITIES $ 539,636,065 $ 548,166,869

NET POSITION
Net investment in capital assets $ 30,369,861 $ 40,722,834
Restricted:
Capital projects 3,117,821 3,039,188
Repairs and replacement 5,908,508 5,706,815
Debt service 44,912,746 39,808,721
Unrestricted 911,546 932,395
TOTAL NET POSITION $ 85,220,482 $ 90,209,953
STATEMENTS OF NET POSITION (CONTINUED)
June 30, 2014 and 2013

32
2014 2013
OPERATING REVENUES (notes 1 and 6) $ 28,140,951 $ 26,918,771
OPERATING EXPENSES (notes 1 and 7)
Operations expenses 28,179,836 26,744,183
Depreciation expense 24,512,910 23,101,920
Total Operating Expenses 52,692,746 49,846,103
Operating Loss (24,551,795) (22,927,332)

NONOPERATING REVENUES (EXPENSES)
Interest income 37,389 42,067
Federal Build America Bonds subsidy 1,419,476 1,463,069
Bond issuance costs (146,377) (1,168,995)
Loss on asset disposals (968,829) (1,470,689)
Other (890) (9,015)
Revenue in excess of expenses from restricted accounts (note 8) 4,381,535 5,155,455
Total Nonoperating Revenues, Net 4,722,304 4,011,892

NET LOSS BEFORE CAPITAL CONTRIBUTIONS (19,829,491) (18,915,440)

CAPITAL CONTRIBUTIONS (note 8) 14,840,020 12,369,757

CHANGE IN NET POSITION (4,989,471) (6,545,683)
TOTAL NET POSITION, beginning of year 90,209,953 96,755,636

TOTAL NET POSITION, end of year $ 85,220,482 $ 90,209,953
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
For the Years Ended June 30, 2014 and 2013

33
CASH FLOWS FROM OPERATING ACTIVITIES 2014 2013
Cash received from localities $ 29,769,370 $ 30,020,510
Payments to employees for services (17,237,646) (16,584,298)
Payments to suppliers for goods and services (8,747,606) (9,600,786)
Net Cash Provided by Operating Activities 3,784,118 3,835,426

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Proceeds from debt issuance - 101,615,000
Defeasance of long-term debt (35,620,000) (82,465,000)
Bond issuance costs (146,377) (1,168,995)
Collections for debt service 34,022,484 32,971,343
Proceeds from grants 796,864 1,683,394
Federal Build America Bonds subsidy 1,419,476 1,463,069
Interest payments on long-term debt (21,590,379) (34,072,181)
Principal payments on long-term debt (10,246,460) (10,064,140)
Proceeds from loans 39,011,601 6,966,720
Acquisition & construction of capital assets (23,471,296) (39,445,101)
Proceeds from sale of capital assets 30,444 59,661
Net Cash Used in Capital and Related Financing Activities (15,793,643) (22,456,230)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (3,742,197) (5,269,032)
Interest on investments 938,810 697,353
Net Cash Used in Investing Activities (2,803,387) (4,571,679)
NET DECREASE IN CASH AND CASH EQUIVALENTS (14,812,912) (23,192,483)
CASH AND CASH EQUIVALENTS, beginning of year 81,711,216 104,903,699
CASH AND CASH EQUIVALENTS, end of year $ 66,898,304 $ 81,711,216
Reconciliation of Operating Loss to Net Cash Provided by Operating Activities
Operating loss $ (24,551,795) $ (22,927,332)
Adjustments to reconcile operating loss to net cash provided by operating activities:
Depreciation 24,512,910 23,101,920
Changes in assets and liabilities
Net change in accounts receivable, accounts payable, prepaid expenses and inventory 11,103 265,740
Net OPEB obligation 236,107 235,401
Collections for reserve maintenance 3,877,488 3,918,459
Payments for reserve maintenance costs (301,695) (758,762)
Net Cash Provided by Operating Activities $ 3,784,118 $ 3,835,426
Noncash Investing, Capital, and Financing Activities:
Decrease in fair value of investments not classified as cash and cash equivalents $ (85,220) $ (1,384,742)
Loss on disposals (999,273) (1,530,351)
Increase in landfill closure and postclosure care liability (61,417) (167,691)
Increase in net OPEB liability (346,000) (319,000)
STATEMENTS OF CASH FLOWS
For the Years Ended June 30, 2014 and 2013

34
1. SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES:
(a) Reporting Entity:
The Upper Occoquan Service Authority (UOSA) is a tax-exempt organization whose principal purpose is the reclamation of
wastewater to protect Northern Virginia’s Occoquan Reservoir as a potable water supply source. UOSA is a joint venture formed
on March 3, 1971 by a concurrent resolution of the governing bodies of Fairfax and Prince William Counties and the Towns
(now Cities) of Manassas and Manassas Park (the Political Subdivisions). UOSA is a public body politic, corporate, and an
instrumentality of the Commonwealth of Virginia. The governing body of UOSA is an eight-person Board of Directors consisting
of two members appointed for four-year terms by the governing body of each member Political Subdivision.
The obligations of UOSA and its member Political Subdivisions are set forth in a Restated Service Agreement. Under the Restated
Service Agreement, UOSA is obligated to process all wastewater delivered to it by the member Political Subdivisions up to their
allotted capacities. The Political Subdivisions are obligated to pay charges for the wastewater processing. These charges include
Operations and Maintenance, Reserve Maintenance (the cost of replacements and necessary improvements, which do not increase
the system capacity), and Debt Service on the loans and bonds issued to finance construction of the UOSA facilities.
As required by accounting principles generally accepted in the United States of America for governmental entities, the financial
statements of the reporting entity include all the funds and accounts of UOSA (the primary government). There are no component
units to be included in the reporting entity.
(b) Basis of Accounting:
The accounting records for UOSA are maintained on the accrual basis with revenue recorded when earned and expenses recorded
when incurred. The accounting and reporting policies conform to accounting principles generally accepted in the United States
of America. UOSA applies all applicable Governmental Accounting Standards Board (GASB) pronouncements.
(c) Budget and Budgetary Accounting:
The Board of Directors adopts an annual budget for operations and maintenance as required by the Restated Agreement of Trust
administered by the Trustee, U.S. Bank National Association. The budget is based on a projected wastewater flow and may be
amended during the year, as determined necessary, by the Board of Directors. Additionally, after adoption, increases or decreases
in the budget may be made only upon Board approval. The charges to the four member Political Subdivisions, based on the
budget and monthly flow, are adjusted upon completion of the annual audit for any deficit or available surplus in the Operating
Account. The deficit or available surplus in the Operating account is recorded as a receivable or liability respectively, at year end.
The budget is prepared on the accrual basis of accounting. Budgetary control is maintained at the sub-function level. A review
of revenues and expenses compared to the budget is conducted with the Board of Directors on a monthly and quarterly basis.
Unexpended budgeted amounts for the Operating Account lapse at year-end and may not be carried forward to the next year.
Design and construction budgets and related funds are multi-year and do not lapse annually.
(d) Cash and Cash Equivalents:
At June 30, 2014 and 2013, all cash of UOSA is maintained in accounts covered by Federal deposit insurance or collateralized in
accordance with the Virginia Security for Public Deposits Act (the Act).
Under the Act, banks holding public deposits in excess of the amounts insured by Federal deposit insurance must pledge collateral
in the amount of 50% of excess deposits to a collateral pool in the name of the State Treasury Board. If any member bank fails,
the entire collateral pool becomes available to satisfy the claims of the governmental entities. With the ability to make additional
assessments, the multiple bank collateral pool functions similar to Federal deposit insurance. Savings institutions are required to
collateralize 100% of deposits in excess of Federal deposit insurance limits.
UOSA considers all highly liquid investments with a maturity of three months or less from the date of purchase to be cash
equivalents.
Unrestricted cash and cash equivalents consist of bank deposits, petty cash funds, and certificate of deposit investments.
NOTES TO THE FINANCIAL SECTION
June 30, 2014 and 2013

35
Unrestricted cash and cash equivalents 2014 2013
Cash $ 7,405,744 $ 7,222,436
Total unrestricted cash and cash equivalents $ 7,405,744 $ 7,222,436
Restricted cash and cash equivalents consist of bank deposits and money fund investments in debt service and project fund
accounts held by a Trustee.
Restricted cash and cash equivalents 2014 2013
Cash $ 4,003,371 $ 4,407,949
Money market funds held by trustee 55,489,189 70,080,831
Total restricted cash and cash equivalents $ 59,492,560 $ 74,488,780
(e) Investments:
UOSA follows GASB Statement No. 31, Accounting and Reporting for Certain Investments and for External Investment Pools,
which prescribes that certain investments be reported at their fair value, with the change in fair value being reported as revenue.
Fair values are based on quoted market prices. Statement No. 31 permits governmental entities other than investment pools to
report certain money market investments that mature within one year or less from the date of their acquisition at amortized cost.
As of June 30, 2014 and 2013, the carrying value of UOSA’s investments, with their respective credit ratings, was as follows:
Fair Value
Investment Type Credit Rating 2014 2013
U.S. Securities AAA $ 32,424,714 $ 28,767,738
Total investments $ 32,424,714 $ 28,767,738
(1) Credit Risk of Debt Securities:
UOSA’s Investment Policy (Policy) authorizes UOSA to invest in (1) obligations of the United States, the Commonwealth of
Virginia, the Federal National Mortgage Association, Federal Home Loan Banks, Federal Home Loan Mortgage Corporation,
Federal Land Banks, Federal Intermediate Credit Banks, Federal Banks for Cooperatives, Financing Corporation (FICO), and
Student Loan Marketing Association, (2) commercial paper with a maturity of 270 days or less rated prime 1 by Moody’s Investors
Service, Inc. or A-1 by Standard & Poor’s Corporation, and (3) repurchase agreements.
(2) Concentration of Credit Risk:
The Policy places no limit on the amount UOSA may invest in any one issuer. UOSA had investment types at June 30, 2014 and
2013, that exceed 5% of the total investments.

2014 2013
% of Total % of Total
Investment Type Fair Value Investments Fair Value Investments
U.S.Treasury Notes and Bills $ 32,424,714 100% $ 28,767,738 100%
Total investments $ 32,424,714 100% $ 28,767,738 100%

June 30, 2014 and 2013

36
(3) Interest Rate Risk:
The Policy limits the investment of funds in the operating and restricted asset accounts in obligations of the following maturities:
• Operating Account - Not to exceed date needed for payment of operating expenses.
• Restricted Asset Accounts:
Construction Fund - Not to exceed date needed for payment of construction costs
Reserve Maintenance - Not to exceed seven years
Revenue Bond - Not to exceed date needed for payment of principal and interest
As of June 30, 2014 and 2013, UOSA had the following investments and maturities:
Original Maturity (in years)
Fair Value at More than
Investment Type June 30, 2014 Less than 1 year 1-2 Years 2 Years
U.S. Securities $ 32,424,714 $ - $ - $ 32,424,714
Total investments $ 32,424,714 $ - $ - $ 32,424,714
Original Maturity (in years)
Fair Value at More than
Investment Type June 30, 2013 Less than 1 year 1-2 Years 2 Years
U.S. Securities $ 28,767,738 $ - $ - $ 28,767,738
Total investments $ 28,767,738 $ - $ - $ 28,767,738
(4) Custodial Credit Risk:
The Policy requires execution of a third-party custodial safekeeping agreement for all purchased securities, and requires that
securities be held in UOSA’s name. As of June 30, 2014 and 2013, all of UOSA’s investments are held in a bank’s trust
department in UOSA’s name, and therefore UOSA is not exposed to custodial credit risk.
(f) Accounts Receivable:
Management expects all receivables to be fully collectible; therefore, no allowance for bad debts is maintained. Receivables relate
to reserve maintenance, septage facility usage and selected meter stations and pump stations, the latter two of which are operated
on behalf of others.
(g) Inventories:
Inventories consist of chemicals, fuels and maintenance parts. Inventories are carried at the lower of cost or market. Cost is
determined on an average cost basis for chemicals, fuels and maintenance parts.
(h) Capital Assets:
Capital assets consist of the water reclamation system, vehicles, furniture and equipment valued at historical cost. In addition to
property and equipment, other direct acquisition costs, construction period net interest costs, and certain administrative costs
during the construction period have been capitalized. When appropriate, costs are reduced by interest earned on construction
funds. The capitalization threshold for capital assets is $5,000. The assets are depreciated using the straight-line method.
Capital Assets Estimated Useful Lives
Treatment Plant and Reservoir 15 – 50 years
Interceptor Sewers 20 – 50 years
Pumping Stations 10 – 50 years
Mobile Equipment 5 – 10 years
Office Furniture and Equipment 5 – 15 years
Vehicles 8 years
June 30, 2014 and 2013

37
(i) Deferred outflow of resources:
In addition to assets, the statement of net position reports a separate section for deferred outflows of resources. This separate
financial statement element represents a consumption of net position that applies to a future period and so will not be recognized
as an expense until then. UOSA’s one item that meets this criteria is the deferred amount on bond refunding.
(j) Retirement System:
(1) Plan Summary:
UOSA contributes to the Virginia Retirement System (VRS), a mixed agent and cost-sharing multiple-employer public employee
retirement system that acts as a common investment and administrative agent for Political Subdivisions in the Commonwealth of
Virginia. All full-time, salaried permanent UOSA employees are automatically covered by VRS upon employment. Benefits vest
after five years of service credit. Members earn one month of service credit for each month they are employed and their employer is
paying into the VRS. Members are eligible to purchase prior public service, active duty military service, certain periods of leave and
previously refunded VRS service as credit in their plan.
VRS administers three different benefit plans for local government employees: Plan 1, Plan 2 and Hybrid. Each plan has a different
eligibility and benefit structure as described below.
Plan 1: VRS Plan 1 is a defined benefit plan. UOSA employees are eligible for Plan 1 if their membership date is before July 1, 2010
and they were vested as of January 1, 2013. The Plan 1 Basic Benefit is a lifetime monthly benefit based on the retirement multiplier,
1.70% of the employees’s average final compensation multiplied by the employee’s total service credit. Plan 1 average final compensation
is the average of the employee’s 36 consecutive months of highest compensation. Plan 1 retirees are eligible for an annual cost-of-living
adjustment (COLA), not to exceed 5%, effective July 1 of the second calendar year of retirement. During years of no inflation or deflation,
the COLA is 0%. Benefits vest after five years of service credit. Employees are eligible for an unreduced retirement benefit beginning at age
65 with at least five years of service credit or age 50 with at least 30 years of service credit. Employees may retire with a reduced benefit as
early as age 55 with at least 10 years of service credit or age 50 with at least five years of service credit.
Plan 2: VRS Plan 2 is a defined benefit plan. UOSA employees are eligible for Plan 2 if their membership date is on or
between July 1, 2010 and December 31, 2013, or their membership date is before July 1, 2010, and they were not vested on
January 1, 2013. The Plan 2 Basic Benefit is a lifetime monthly benefit based on the retirement multiplier as a percentage of the employee’s
average final compensation multiplied by the employee’s total service credit. The Plan 2 retirement multiplier is 1.65% on service credit
earned on or after January 1, 2013 and 1.70% on service earned before January 1, 2013. Plan 2 average final compensation is the average
of the employee’s 60 consecutive months of highest compensation. Plan 2 retirees are eligible for an annual cost-of-living adjustment
(COLA), not to exceed 3%, effective July 1 of the second calendar year of retirement. During years of no inflation or deflation, the
COLA is 0%. Benefits vest after five years of service credit. Employees are eligible for an unreduced benefit beginning at their normal
Social Security retirement age with at least five years of service credit or when the sum of their age and service equals 90. They may
retire with a reduced benefit as early as age 60 with at least five years of service credit.
Hybrid Plan: The Hybrid Plan is a defined benefit plan and a defined contribution plan. UOSA employees are eligible for the Hybrid
Plan if their membership date is on or after January 1, 2014. VRS Plan 1 and Plan 2 members were allowed to make an irrevocable
decision to opt into the Hybrid Plan during a special election window from January 1, 2014 to April 30, 2014. No Plan 1 or Plan
2 members at UOSA opted into the Hybrid Plan.
• Defined Benefit component- The Basic Benefit of the Hybrid defined benefit plan is a lifetime monthly benefit based on the
retirement multiplier, 1.0%, of the employee’s average final compensation multiplied by the employee’s total service credit.
The Hybrid Plan average final compensation is the average of the employee’s 60 consecutive months of highest compensation.
Hybrid Plan retirees are eligible for an annual cost-of-living adjustment (COLA), not to exceed 3%, effective July 1 of the
second calendar year of retirement. During years of no inflation or deflation, the COLA is 0%. The defined benefit component
vests after five years of service credit. Employees are eligible for an unreduced defined benefit beginning at their normal Social
Security retirement age with at least five years of service credit or when the sum of their age and service equals 90. They may
retire with a reduced defined benefit as early as age 60 with at least five years of service credit.
• Defined Contribution component- The benefit from the Hybrid defined contribution plan is based on contributions made
by the member and UOSA, plus net investment earnings on those contributions. Hybrid members manage the investments
and related risk. Members are eligible to receive distributions upon leaving employment, subject to vesting restrictions on the
UOSA contributions. A percentage of the UOSA contributions to the defined contribution plan are eligible to be withdrawn
based on years of service. After two years, 50% is vested and 50% of UOSA’s contributions may be withdrawn. After three
years, 75% is vested and 75% of UOSA’s contributions may be withdrawn. After four or more years, 100% is vested and 100%
of UOSA’s contributions may be withdrawn.
June 30, 2014 and 2013

38
At retirement with the defined benefit plans, members can elect the Basic Benefit, the Survivor Option, a Partial Lump-sum Option
Payment (PLOP) or the Advance Pension Option. A retirement reduction factor is applied to the Basic Benefit amount for member
electing the Survivor Option, PLOP, or Advance Pension Option or those retiring with a reduced benefit.
VRS also provides death and disability benefits. Title 51.1 of the Code of Virginia (1950), as amended, assigns the authority to
establish and amend benefit provisions of the plan to the General Assembly of Virginia.
VRS issues a publicly available comprehensive annual financial report that includes financial statements and required supplementary
information for the plans administered by VRS. A copy of the most recent report is available online at http://www.varetire.org/Pdf/
Publications/2013-annual-report.pdf or may be obtained by writing to the Virginia Retirement System’s Chief Financial Officer at
P.O. Box 2500, Richmond, VA 23218-2500.
(2) Funding Policy:
Plan members are required by Title 51.1 of the Code of Virginia (1950), as amended, to contribute 5% of their annual salary
towards their VRS retirement benefit. Through June 30, 2012, UOSA had assumed the 5% member contribution. Beginning
July 1, 2012 as a result of Virginia State legislative changes, new employees were required to pay the 5% member contribution.
In addition, for existing employees, employers were required to implement a transition to have the employee pay the 5% member
contribution. This requirement could be phased in over a period of up to 5 years and the employer is required to provide a salary
increase equal to the amount of the increase in the employee-paid member contribution. UOSA’s Board adopted resolutions to
implement the withholding and related salary increases at 1% effective July 1, 2012 and an additional 2% effective July 1, 2013
for a total of 3% as of June 30, 2014. In addition, UOSA is required to contribute the remaining amounts necessary to fund its
participation in the VRS using the actuarial basis specified by the Code of Virginia and approved by the VRS Board of Trustees.
UOSA’s contribution rate for the fiscal year ended June 30, 2014 was 8.95% of annual covered payroll.
(3) Annual Pension Cost:
For the fiscal year ended June 30, 2014, UOSA’s annual pension cost of $1,411,017 for VRS was equal to UOSA’s required and
actual contributions.
Three-Year Trend Information
Annual Pension Percentage of Net Pension
Fiscal Year Cost (APC) APC Contributed Obligation
2012 $ 1,331,009 100% -0-
2013 1,581,147 100% -0-
2014 1,411,017 100% -0-
The FY 2014 required contribution was determined as part of the June 30, 2011 actuarial valuation using the entry age actuarial
cost method. The actuarial assumptions at June 30, 2011 included: (a) 7.00% investment rate of return (net of administrative
expenses), (b) projected salary increases ranging from 3.75% to 5.60% per year, and (c) a cost-of-living adjustment of 2.50%
per year for Plan 1 employees and 2.25% for Plan 2 employees. Both (a) and (b) included an inflation component of 2.50%.
The actuarial value of the UOSA’s assets is equal to the modified market value of assets. This method uses techniques that
smooth the effects of short-term volatility in the market value of assets over a five-year period. UOSA’s unfunded actuarial
accrued liability is being amortized as a level percentage of projected payroll on a closed basis. The remaining amortization
period at June 30, 2013 for the Unfunded Actuarial Accrued Liability (UAAL) was 30 years.
June 30, 2014 and 2013

39
(4) Funded Status and Funding Progress:
As of June 30, 2013, the most recent actuarial valuation, UOSA’s funding progress of the Plan is as follows:
Schedule of Funding Progress
Actuarial Unfunded
Actuarial Accrued Actuarial Annual UAAL as
Actuarial Value of Liability – Accrued Liability Funded Covered % of
Valuation Assets Entry Age (UAAL) Ratio Payroll Payroll
Date (1) (2) (2-1) (1/2) (3) [(2-1)/3]
June 30, 2013 $ 35,542,753 $ 46,653,625 $ 11,110,872 76.2% $ 12,374,810 89.8%
The schedule of funding progress, presented as required supplemental information (RSI) following the notes to the financial
statements, presents multiyear trend information about whether the actuarial value of the plan assets is increasing or decreasing
over time relative to the actuarial accrued liability (AAL) for benefits.
(k) Deferred Compensation Plan:
UOSA offers its employees a deferred compensation plan in accordance with Internal Revenue Code, Section 457. The funds are
held in a trust and managed by a third party. Therefore, UOSA is no longer reporting such assets and associated liabilities on its
statement of net position as stated under GASB 32 (Accounting and Financial Reporting for Internal Revenue Code, Section 457,
Deferred Compensation Plans). The deferred compensation amounts as of June 30, 2014 and 2013 were $233,528 and $211,762
respectively.
(l) Compensated Absences:
UOSA’s employee benefits program provides for the earning and accumulation of vacation and sick leave. The accumulation
of vacation leave is limited to 240 hours for employees with less than 10 years of service and 320 hours for 10 or more years.
Accumulated vacation hours in excess of the limit are transferred to sick leave. Accrued vacation leave balances are paid to
employees who terminate employment. The liability for accrued vacation leave as of June 30, 2014 and 2013, included in accounts
payable on the statement of net position, was $1,212,318 and $1,136,498 respectively.
Sick leave may be accumulated up to 480 hours for employees in the VRS Hybrid Plan and without limit for all other full-time
employees. A portion is paid upon termination based on years of service and does not exceed 25% of the total accumulated
balance. As of June 30, 2014 and 2013, the liability for accrued sick leave included in accounts payable on the statement of net
position was $819,031 and $741,735 respectively.
(m) Risk Management:
UOSA is exposed to various risks of loss related to torts; thefts of, damage to, and destruction of assets; errors and omissions;
injuries to employees; and natural disasters. UOSA purchases insurance coverage for risks including workers’ compensation,
automobiles, boiler/machinery use, land use, public officials’ liability, crime, general liability, and earthquake. UOSA has not
incurred any environmental losses through June 30, 2014 and in the past three years there were no insurance settlements that
exceeded insurance coverage. Costs resulting from non-insured losses will be charged to operations when incurred.
(n) Other Postemployment Benefits:
(1) Plan Description:
UOSA administers a single-employer defined postemployment health care benefit plan (“the Plan”). The Plan provides
postemployment health care benefits to eligible employees who have retired from UOSA on or after July 1, 1999. In order to
participate, retirees must meet the requirements of the Virginia Retirement System (VRS) and have attained age 55 with at least ten
years of continuous service. The benefit levels, employee contributions and employer contributions are governed by UOSA’s Board
of Directors and can be amended by UOSA’s Board of Directors. Separate financial statements were not issued for the Plan.
Retirees under the age of 65 and their dependents (spouse and children) are eligible to obtain health insurance from the same medical
plans available to active employees provided the retiree was previously enrolled in UOSA’s, or another, group medical plan for a
minimum of one year immediately prior to retirement. UOSA contributes 2% towards the total cost of the selected coverage for every
year of accrued service up to 40 years. Partial years of service are counted in increments of one month. Participation in UOSA’s health
June 30, 2014 and 2013

40
insurance plan ends once the retiree becomes eligible for Medicare at age 65. At that time, the retiree’s dependents will be offered
health care coverage under COBRA and the Medicare eligible retiree is provided a monthly health care subsidy based on years of
service to help offset any expenses not covered by Medicare. UOSA pays each participating Post-65 retiree $5 per month per year of
service with a subsidy minimum of $50 and maximum of $150. Employees who retired prior to age 65 do not need to participate in
the health insurance plan to receive the monthly health care subsidy at age 65. The health care benefits end at the death of the retiree.
Current UOSA Pre-65 retirees who qualify for health insurance benefits receive an implicit rate subsidy by participating in the active
employee health care risk pool.
(2) Membership:
At June 30, 2014, membership consisted of the following:
Number of Participants
a. Active Employees with UOSA Health Coverage 163
b. All Active Employees 175
c. Pre-65 Retirees 10
d. Post-65 Retirees 24
(3) Funding Policy:
The contribution requirements of plan members are established and may be amended by UOSA’s Board of Directors. UOSA is not
required to fund the Plan for an amount greater than the pay-as-you-go balance necessary to provide current benefits to retirees.
As of June 30, 2014, UOSA has not established a trust fund to irrevocably segregate assets to fund the OPEB liability; however,
UOSA’s Board of Directors designated $300,000 in FY14 and the four preceding fiscal years for a total of $1,300,000 towards
future OPEB funding. For the fiscal year ended June 30, 2014 and 2013, UOSA paid $109,893 and $83,599, respectively, in
pay-as-you-go expenses on behalf of the Plan.
(4) Annual OPEB Cost and Net OPEB Obligation:
UOSA’s annual OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount
actuarially determined in accordance with the parameters of GASB Statement No. 45. The ARC represents a level of funding that,
if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding
excess) over a period not to exceed thirty years.
UOSA’s annual OPEB cost, the actual amount contributed, and the net OPEB obligation for 2014 and 2013 are as follows:
2014 2013
Discount Rate 4% 4%
Annual Required Contribution (ARC) $ 356,000 $ 325,000
Interest on Net OPEB Obligation 44,000 34,000
Adjustment to Annual Required Contribution (54,000) (40,000)
Annual OPEB Cost (expense) 346,000 319,000
Pay-As-You-Go Annual Employer Contribution (109,893) (83,599)
Increase in Net OPEB Obligation 236,107 235,401
Net OPEB Obligation, Beginning of Year 1,093,462 858,061
Net OPEB Obligation, End of Year $ 1,329,569 $ 1,093,462
June 30, 2014 and 2013

41
UOSA’s annual OPEB cost, the percentage of annual OPEB cost contributed, and the net OPEB obligation for the fiscal year ended
June 30, 2014 are as follows:
Three Year Trend Information
Fiscal Year Annual OPEB Percentage of Annual OPEB Net OPEB
Ended Cost Cost Contributed Obligation
June 30, 2012 $ 301,000 27.7% $ 858,061
June 30, 2013 $ 319,000 26.2% $ 1,093,462
June 30, 2014 $ 346,000 31.8% $ 1,329,569
(5) Funded Status:
For the year ended June 30, 2014, UOSA’s OPEB funding progress of the Plan is as follows:
Schedule of Funding Progress
Unfunded
Actuarial Actuarial Actuarial Annual UAAL as
Actuarial Value of Accrued Accrued Liability Funded Covered % of
Valuation Assets Liability (UAAL) Ratio Payroll Payroll
Date (1) (2) (2-1) (1/2) (3) [(2-1)/3]
July 1, 2013 $ - $ 3,713,000 $ 3,713,000 0.0% $ 13,364,110 27.8%
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability
of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the health care
cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are
subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The
schedule of funding progress, also presented as required supplementary information following the notes to the financial statements,
presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to
the actuarial accrued liabilities for benefits.
(6) Actuarial Methods and Assumptions:
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employer and
the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include techniques
that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value assets, consistent
with the long-term perspective of the calculations.
In the July 1, 2013 actuarial valuation, the Projected Unit Credit actuarial cost method was used. The actuarial assumptions
included a 4.0% investment rate of return (net of administrative expenses), which is the expected long-term investment returns on
the employer’s own investments calculated based on the funded level of the plan at the valuation date, and a 2.5% payroll growth
rate. The medical trend assumption was based on the Society of Actuary’s Long-Run Medical Cost Trend Model, using the baseline
assumptions except for the real wage growth assumption of 0.9%. The initial health care cost trend rate was 6.5% and the assumed rate
of increase in 2048 is 4.8%. The unfunded actuarial liability is being amortized as a level percentage of projected payroll on a closed
basis. The remaining amortization period at June 30, 2014 was twenty-five years. Additional information as of the latest actuarial
valuation follows:
Long-Run Medical Cost Trend Assumptions:
Rate of Inflation 2.8%
Rate of Growth in Real Income / GDP per capita 0.9%
Income Multiplier for Health Spending 1.3
Extra Trend due to Technology and other factors 1.1%
Health Share of GDP Resistance Point 23.0%
Year for Limiting Cost Growth to GDP Growth 2060
June 30, 2014 and 2013

42
(o) Revenues and Expenses Classification:
Revenues from billings to the Political Subdivisions for treatment of sewage are reported as operating revenues. All other
transactions are reported as nonoperating revenues. All expenses related to operating UOSA are reported as operating expenses.
Interest expense and financing costs are reported as nonoperating expenses.
(p) Significant Accounting Policy:
Net position is classified as net investment in capital assets, restricted and unrestricted. Restricted assets present constraints on
resources that are either externally imposed by creditors, contributors, laws and regulation of other governments or imposed by
law through state statute.
(q) New Accounting Pronouncements:
GASB Statements No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position,
and No. 65, Items Previously Reported as Assets and Liabilities, provides guidance for reporting transactions that result in the
consumption or acquisition of net assets in one period that are applicable to future periods, and the related accounting and
financial reporting standards to reclassify such items from their prior reporting basis. Statements 63 and 65 were implemented
during the year ended June 30, 2013.
2. ACCOUNTS RECEIVABLE:
Accounts receivable consists of the following at June 30, 2014 and 2013:
2014 2013
Fairfax County $ 283,172 $ 349,718
Prince William County 13,509 3,886
City of Manassas 8,667 5,108
Other 61,938 25,298
Total $ 367,286 $ 384,010
3. RESTRICTED ASSET ACCOUNTS:
UOSA’s restricted assets are accounted for within the Enterprise Fund accounts rather than through separate fund entities. Therefore,
in accordance with the Restated Agreement of Trust and Supplements administered by the Trustee, UOSA had the following restricted
asset accounts in operation at June 30, 2014:
Reserve Maintenance - This account receives all revenue derived by UOSA to pay the cost of replacements and necessary improvements
that do not increase the system capacity or scope. In accordance with Section 606 of the Restated Agreement of Trust, UOSA charges
and collects from the Political Subdivisions amounts sufficient to make the current balance in the Reserve Maintenance account equal
to the greater of (1) $2,000,000, (2) the estimated cost of replacements and necessary improvements which do not increase the system
capacity or scope as set forth in the current fiscal year budget, or (3) the amount certified by UOSA’s consulting engineer, provided,
however, that if such amount certified by the consulting engineer is greater, UOSA may charge and collect the amount over a period
not to exceed five fiscal years, so long as the amount on deposit at all times during the year is at least equal to the amount required to
pay the cost of replacements and improvements which do not increase the system capacity or scope.
Revenue Bonds - These accounts receive all revenue derived by UOSA to pay the principal and interest on the bonds. At all times, there
is on deposit in the Revenue Bond Interest Accounts the amount of interest on the bonds accrued to the last day of the current month.
At all times, there is on deposit in the Revenue Bond Principal Accounts the amount of principal due on the outstanding bonds during
the next succeeding twelve months accrued to the last day of the current month. At all times, there is on deposit in the Revenue Bond
Sinking Fund Accounts the amount of any sinking fund installment due within the next succeeding twelve months accrued to the last
day of the current month with respect to any Bonds that are subject to redemption, in accordance with Section 607 of the Restated
Agreement of Trust and the First Supplemental Restated Agreement of Trust.

June 30, 2014 and 2013

43
Bond Debt Reserve - This account contains at all times an amount deposited from the proceeds of UOSA’s bonds sufficient to cover
the maximum amount payable on account of principal and interest in any fiscal year (the Required Reserve) in accordance with the
Restated Agreement of Trust, Section 608. According to Section 608, in lieu of the Required Reserve or any portion of it, the account
may contain on deposit a surety bond or an insurance policy payable to the Trustee for the benefit of the bondholders, in an aggregate
amount equal to the difference between the Required Reserve and the amount on deposit in the Debt Reserve Account.
Construction - This account receives proceeds from the issuance of bonds and is used to pay for construction in accordance with the
Restated Agreement of Trust, as supplemented, Section 501.
As of June 30, 2014 and 2013, the Restricted Asset Accounts are summarized below:
2014
Reserve
CIP Maintenance Debt Service Total
Cash and Cash Equivalents $ 32,559,833 $ 4,003,369 $ 22,929,358 $ 59,492,560
Investments - - 32,424,714 32,424,714
Accounts Receivable 1,315,065 - - 1,315,065
Arbitrage Rebate Receivable 1,800,000 - - 1,800,000
Reserve Maintenance Receivable - 2,192,780 - 2,192,780
Accrued Interest Receivable 2,755 - 98,495 101,250
Total $ 35,677,653 $ 6,196,149 $ 55,452,567 $ 97,326,369
2013
Reserve
CIP Maintenance Debt Service Total
Cash and Cash Equivalents $ 49,354,087 $ 4,003,970 $ 21,130,723 $ 74,488,780
Investments - - 28,767,738 28,767,738
Accounts Receivable 1,229,260 - - 1,229,260
Deposits 5,800 - - 5,800
Arbitrage Rebate Receivable 1,800,000 - - 1,800,000
Reserve Maintenance Receivable - 1,805,119 - 1,805,119
Accrued Interest Receivable 4,128 - 98,302 102,430
Total $ 52,393,275 $ 5,809,089 $ 49,996,763 $ 108,199,127
June 30, 2014 and 2013

44
4. CAPITAL ASSETS:
(a) Changes in capital assets for the years ended June 30, 2014 and 2013 follow:

2014
Balance Balance
June 30, 2013 Additions Retirements Transfers June 30, 2014
Non-depreciable
Capital Assets
Land $ 7,203,612 $ - $ - $ - $ 7,203,612
Construction-in-progress 53,500,065 21,926,568 - (57,073,724) 18,352,909
Depreciable
Capital Assets
Utility Plant and Equipment:
Treatment Plant and Reservoir 563,175,715 50,334,555 (2,518,585) - 610,991,685
Interceptor Sewers 59,498,439 9,105,634 (479,435) - 68,124,638
Pumping Stations 117,547,083 149,201 (1,878) - 117,694,406
Mobile Equipment 2,848,434 97,128 - 2,945,562
Other:
Office Furniture and Equipment 7,454,742 175,472 (48,404) - 7,581,810
Vehicles 1,593,912 75,386 (47,416) - 1,621,882
Total Capital Assets $ 812,822,002 $ 81,863,944 $ (3,095,718) $ (57,073,724) $ 834,516,504
2013
Balance Balance
June 30, 2012 Additions Retirements Transfers June 30, 2013
Non-depreciable
Capital Assets
Land $ 7,203,612 $ - $ - $ - $ 7,203,612
Construction-in-progress 99,484,824 38,494,812 - (84,479,571) 53,500,065
Depreciable
Capital Assets
Treatment Plant and Reservoir 528,209,185 35,823,921 (857,391) - 563,175,715
Interceptor Sewers 48,965,353 11,541,924 (1,008,838) - 59,498,439
Pumping Stations 84,396,460 39,787,267 (6,636,644) - 117,547,083
Mobile Equipment 2,764,130 91,206 (6,902) - 2,848,434
Other:
Office Furniture and Equipment 7,382,081 202,738 (130,077) - 7,454,742
Vehicles 1,566,697 100,768 (73,553) - 1,593,912
Total Capital Assets $ 779,972,342 $ 126,042,636 $ (8,713,405) $ (84,479,571) $ 812,822,002
June 30, 2014 and 2013

45
(b) Changes in accumulated depreciation for the years ended June 30, 2014 and 2013 follow:

2014
Balance Balance
June 30, 2013 Additions Retirements June 30, 2014
Depreciable
Capital Assets
Treatment Plant and Reservoir $ 261,536,688 $ 18,616,165 $ (1,641,739) $ 278,511,114
Interceptor Sewers 14,187,805 1,243,696 (388,034) 15,043,467
Pumping Stations 19,058,020 4,098,359 (1,878) 23,154,501
Mobile Equipment 2,285,802 135,799 - 2,421,601
Other:
Office Furniture and Equipment 6,410,749 288,152 (24,228) 6,674,673
Vehicles 1,080,629 130,738 (40,565) 1,170,802
Total Accumulated Depreciation $ 304,559,693 $ 24,512,909 $ (2,096,444) $ 326,976,158
2013
Balance Balance
June 30, 2012 Additions Retirements June 30, 2013
Depreciable
Capital Assets
Treatment Plant and Reservoir $ 244,410,569 $ 17,890,377 $ (764,258) $ 261,536,688
Interceptor Sewers 13,844,315 1,090,467 (746,977) 14,187,805
Pumping Stations 21,093,447 3,463,463 (5,498,890) 19,058,020
Mobile Equipment 2,135,464 152,755 (2,417) 2,285,802
Other:
Office Furniture and Equipment 6,180,894 359,932 (130,077) 6,410,749
Vehicles 1,009,256 144,926 (73,553) 1,080,629
Total Accumulated Depreciation $ 288,673,945 $ 23,101,920 $ (7,216,172) $ 304,559,693
June 30, 2014 and 2013

46
5. LONG-TERM DEBT:
(a) Bonds Payable
The Authority issues revenue bonds to provide funds for acquisition and construction of major capital facilities and for refunding
higher-interest revenue bonds. Bonds payable as of June 30, 2014, consist of the following:
$288,600,000 Sewage System Revenue Bonds, Series 1995A; dated December 1, 1995, principal maturing annually with interest
from 4.30% to 6.00% payable semiannually through July 1, 2029.
Of the total 1995A Series Bonds issued, $225,965,000 has been currently refunded from the proceeds of future bond
issuances and are considered defeased. Accordingly, the liability relating to these bonds has been removed from the
Authority’s financial statements.
$49,395,000 Sewage System Revenue Bonds, Refunding Series 2004; dated November 1, 2004, principal maturing annually with
interest from 3.00% to 5.00% payable semiannually through July 1, 2015.
$90,315,000 Sewage System Revenue Bonds, Refunding Series 2007A; dated March 14, 2007, principal maturing annually with
$119,715,000 Sewage System Revenue Bonds, Series 2007B; dated December 20, 2007, principal maturing annually with interest
$85,180,000 Sewage System Revenue Bonds, Series 2010; dated December 23, 2010, principal maturing annually with interest
$101,615,000 Sewage System Revenue Bonds, Refunding Series 2013A; dated May 30, 2013, principal maturing annually with
For each outstanding bond series, principal payments are made annually on July 1 and interest is payable semi-annually on January 1
and July 1. Future debt service requirements are as follows:

Fiscal Year Principal Interest Total
2015 $ 10,055,000 $ 18,344,850 $ 28,399,850
2016 10,715,000 17,772,182 28,487,182
2017 11,390,000 17,260,001 28,650,001
2018 11,925,000 16,734,595 28,659,595
2019 12,440,000 16,204,578 28,644,578
2020-2024 80,075,000 73,229,502 153,304,502
2025-2029 125,845,000 57,254,182 183,099,182
2030-2034 72,265,000 34,639,920 106,904,920
2035-2039 69,160,000 20,511,245 89,671,245
2040-2044 55,660,000 4,643,786 60,303,786
$ 459,530,000 $ 276,594,841 $ 736,124,841

June 30, 2014 and 2013

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