2016-132 Audit Scope and Objectives

California Department of Water Resources— California WaterFix Project Funding

The audit by the California State Auditor will provide independently developed and verified information related to the sources of funds spent on planning and design of the California WaterFix Project (WaterFix) by the California Department of Water Resources (DWR), and will include, but not be limited to, the following:

  1. Review and evaluate the laws, rules, and regulations significant to the audit objectives.
  2. Determine how DWR collaborated to organize and fund the planning and design of the Bay Delta Conservation Plan (Delta Plan) and subsequently WaterFix. Specifically, identify the following:
    1. DWR's role in organizing and financing the planning and design.
    2. The extent to which DWR engaged local agencies required to contribute towards WaterFix costs in developing the funding structure for planning and design.
    3. The amounts and proportional share of contributions each local agency and any other entity that provided funds for planning and design made from 2006 to present.
    4. Whether the State allocated any General Fund money for planning and design.
  3. Identify, by source, the amounts of funding DWR, each local agency, and any related joint powers authority raised and used to finance the Delta Plan and subsequently WaterFix. In the case of debt financing, identify the entities that issued debt and their relationships to the water contractor, and determine when and how they secured each debt issuance.
  4. Determine the nature of the Conveyance Project Coordinating Agency's activities, date of its charter, its composition, and the amount of funding, by source, it has received since its inception.
  5. Evaluate the process DWR used to select the contractor to manage design engineering for the Design and Construction Enterprise unit.
  6. Review and assess any other issues that are significant to the audit.

California State Auditor's Office