Clean Water State Revolving Fund 2023 CWSRF FINANCIAL OVERVIEW FY 2023 &EPA www.epa.gov ------- 2023 FINANCIAL HIGHLIGHTS The 51 CWSRF programs provided over $8.8 billion in funding for high priority water infrastructure and other water quality projects in 2023. Cumulatively since the program's inception, CWSRF programs have provided over $172 billion in assistance, mainly in the form of low-cost financing, to a wide range of eligible borrowers. Since 2009, approximately $7 billion has been provided as additional subsidy in the form of direct grants and principal forgiveness. Nearly $665.6 million was provided in 2023 alone. Total assets are approximately $79.7 billion. Net assets have exceeded $59.4 billion. This is a $2.2 billion increase from the previous year. Federal capitalization in 2023 was over $2.8 billion. Annual earnings from loans and investments exceeded $1.4 billion. The CWSRF issued nearly $2 billion in leveraged bonds to provide additional funding for projects. National aggregate financial statements were developed using data entered in EPA's National Information Management System between July 1, 2022 and June 30, 2023. Because the 51 CWSRF programs are independent state-level entities, no nationally audited CWSRF program financial reports are available. The financial statements are non- audited, cash-based financial reports. The four statements are described to the right. Statement of Fund Activity (Page 2) Provides an overview of major indicators of fund activity, including capitalization grant levels, project commitments, project disbursements, and subsidies provided. Both annual and cumulative data are given. Statement of Revenues, Expenses, and Earnings (Page 3) Describes the overall performance of the CWSRF fund over the reporting period that is reflected in the increase or decrease in net assets. Statement of Cash Flows (Page 4) Provides a detailed accounting of the actual flow of cash into and out of the CWSRF fund. Statement of Net Assets (Page 5) Describes CWSRF assets and liabilities through the end of the fiscal year. Assets include financial assets and capital assets. Liabilities include both current and longterm liabilities. CWSRF assets include grant funds that have been drawn from the federal treasury to date, but do not include total grant awards. CWSRF assets also include state matching contributions that have been deposited in the fund. 2023 CWSRF Financial Overview 1 ------- Statement of Fund Activity (Millions of Dollars) Annual Fund Activity FY 2022 FY 2023 Federal Capitalization Grants $1,462.9 $2,850.3 State Matching Funds $367.2 $496.2 New Funds Available for Assistance $7,319.7 $8,411.0 Executed Assistance Agreements $9,624.5 $8,800.7 Project Disbursements $7,153.8 $7,024.6 Cash Draws from Federal Capitalization Grants $1,536.0 $2,027.6 Total Annual Subsidy $373.6 $665.6 Grants $37.9 $78.7 Negative Interest $0.0 $0.0 Principal Forgiveness $335.7 $586.9 Cumulative Fund Activity FY 2022 FY 2023 Federal Capitalization Grants $49,575.2 $52,425.6 State Matching Funds $9,513.4 $10,024.9 Funds Available for Assistance $164,799.7 $173,275.0 Executed Assistance Agreements $164,799.7 $171,648.2 Project Disbursements $144,251.9 $151,276.6 Cash Draws from Federal Capitalization Grants $47,944.6 $49,972.2 Total Annual Subsidy $6,291.0 $6,970.6 Grants $689.2 $768.0 Negative Interest $0.0 $0.0 Principal Forgiveness $5,601.8 $6,202.6 2023 CWSRF Financial Overview 2 ------- Statement of Revenues, Expenses, and Earnings (Millions of Dollars) Operating Revenues FY 2022 FY 2023 1 Interest on Investments $160.7 $535.4 Interest on Loans $910.8 $910.7 Total Operating Revenues $1,071.3 $1,446.1 Operating Expenses FY 2022 FY 2023 Bond Interest Expense $861.6 $867.2 Amortized Bond Issuance Expense $17.7 $18.9 Administrative Expenses $73.9 $80.7 Additional Subsidy Provided $373.6 $665.6 Total Expenses $1,326.9 $1,632.4 Nonoperating Revenues and Expenses FY 2022 FY 2023 Federal Contribution (Cash Draws) $1,536.0 $2,027.6 State Contributions $200.6 $377.1 Transfers from (to) DWSRF ($63.8) ($54.0) Total Nonoperating Revenues (Expenses) $1672.8 $2,350.7 Increase (Decrease) in Net Assets FY 2022 FY 2023 Net Assets $1,417.3 $2,164.4 Beginning of Year $55,864.7 $57,280.5 End of Year $57,282.0 $59,444.8 2023 CWSRF Financial Overview 3 ------- Statement of Cash Flows (Millions of Dollars) Operating Activities FY 2022 FY 2023 1 Cash Draws from Federal Capitalization Grants $1,536.0 $2,027.6 Contributions from States $200.6 $377.1 Loan Disbursements (Including Additional Subsidy) ($7,153.8) ($7,024.6) Loan Principal Repayments $5,011.8 $4,247.9 Project Disbursements $910.6 $7,153.8 Interest Received on Loans $910.6 $910.6 Administrative Expenses ($73.9) ($80.7) Total Cash Flows from Operating Activities $257.1 $457.9 Noncapital Financing Activities FY 2022 FY 2023 1 Gross Leveraged Bond Proceeds $1,415.7 $1,976.7 Bond Issuance Expense ($9.8) ($13.4) State Match Bond Proceeds $166.6 $119.1 Cash Received from Transfers with DWSRF ($63.8) ($54.0) Interest Paid on Leveraged and State Match Bonds ($861.6) ($867.1) CWSRF Funds Used for Refunding ($25.9) ($33.4) Principal Repayment of Leveraged Bonds ($1,499.0) ($1,724.9) Principal Repayment of State Match Bonds ($150.8) ($99.5) Net Cash Provided by Noncapital Financing Activities ($1,028.6) ($696.5) Investing Activities FY 2022 FY 2023 Interest Received on Investments $160.7 $535.4 Release (Deposit) of Leveraged Bond Debt Service Reserve $389.9 $147.3 Net Cash Provided by Investing Activities $550.6 $682.7 Cash and Cash Equivalents FY 2022 FY 2023 Net Increase (Decrease) in Cash and Cash Equivalents ($46.7) $444.1 Beginning of Year $14,108.6 $14,109.3 End of Year $14,061.9 $14,553.4 2023 CWSRF Financial Overview ------- Statement of Net Assets (Millions of Dollars) Assets FY 2022 FY 2023 1 Cash and Cash Equivalents $14,061.9 $14,553.4 Debt Service Reserve - Leveraged Bonds $1,715.9 $1,569.2 Loans Outstanding $61,311.1 $63,355.9 Unamortized Bond Issuance Expenses* $207.9 $202.1 Total Assets $77,296.8 $79,680.6 Liabilities FY 2022 FY 2023 1 Match Bonds Outstanding $623.5 $643.1 Leveraged Bonds Outstanding $19,391.2 $19,592.7 Total Liabilities $20,014.7 $20,235.8 Net Assets FY 2022 FY 2023 Federal Contributions (Cash Draws) $47,944.6 $49,972.2 State Contributions $6,608.4 $7,000.9 Transfers - Other SRF Funds ($1,312.6) ($1,366.6) Other Net Assets $4,041.6 $3,838.3 Total Net Assets $57,282.0 $59,444.8 Total Liabilities and Net Assets $77,296.8 $79,680.6 2023 CWSRF Financial Overview 5 ------- Clean Water State Revolving Fund www.e p a. g ov/cws rf &EPA www.epa.gov EPA Publication 830R24014 ------- |