United Water-Atlanta Financial Reporting - December 2002
United Water Services Financial Reporting
Released: December 2002
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The purpose of this audit was to determine whether United Water Services Unlimited Atlanta, LLC was meeting various financial requirements of its agreement with the City of Atlanta. The company was contracted by the city in 1999 to provide water and billing services for the city for twenty years. We found United Water-Atlanta to be in only partial compliance with its contractual obligations to the city.
We found United Water:
- Met none of the three required financial benchmarks in its most recently reported quarter. These benchmarks were the current ratio, the debt-to-equity ratio, and the ratio of equity to monthly service fee paid by the city.
- Failed to provide 1999 financial statements from its corporate guarantors or to provide sufficient letters of credit to the city until after they were due, both required by the contract between the company and the city.
- Owed the city $2.1 million, paid by the city to United Water-Atlanta for insurance premiums the company should have borne as its own expense.