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Home My WebLink About1974 04 30 Single Audit Report - Clear woods Improvement District Exhibit I Page 1 of 4 NOTES TO FINANCIAL STATEMENTS ek CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 Note 1 : Creation of District Clear Woods Improvement District , Harris County, Texas was created by Acts of the 59th Legislature of the State of Texas , Regular Session, 1965. Note 2: Accounting Methods The exhibits and supporting schedules contained in this report were prepared on the accrual method of accounting except for Exhibit C which was prepared on the modified accrual method and Exhibit E which was prepared on the cash basis. Note 3: Pledge of Tax and Operating Revenues The bonds are payable from the proceeds of an ad valorem tax levied upon all taxable property subject to taxation within the District , without limitation as to rate or amount , and are further payable from and secured by a lien on and pledge of the net revenues to be received from the operation of the District 's waterworks and sanitary sewer system. Note 4: Bond Interest Reserve In accordance with Section VIII of the Bond Orders, a portion of the bond proceeds was deposited into the debt service fund and reserved for the payment of bond interest during the construction period. This bond interest is being capitalized as a district organizational cost as it is paid and the reserve account reduced accordingly. Note 5: District Organizational Costs The District has elected to capitalize and charge to district organizational costs all costs incurred in the issue and sale of bonds , costs of creating and organizing the District and some adminis- trative costs until construction of fixed assets is completed. Exhibit I Page 2 of 4 NOTES TO FINANCIAL STATEMENTS 01 CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 Note 6: Interest Earned on Investments The District has adopted the policy of transferring interest earned on investments of the construction fund permanently to the debt service fund . There were no construction fund investments during the current year. Note 7: Water and Sewer Service Rates The District has established the following monthly water and sewer service rates effective December 6, 1966: Combined Water and Sewer Service First 8,000 Gallons of Water Used (Minimun Bill ) 7.00 Each 1 ,000 Gallons of Water Used Thereafter .45 01 Water Service Only First 8,000 Gallons of Water Used (Minimum Bill ) 5.00 Each 1 ,000 Gallons of Water Used Thereafter .45 Sewer Service Only Sewer Service (Minimum Bill ) 2.00 Note 8: Insurance Policies in Force General Liability Carrier: Indiana Lumberman 's Mutual Insurance Policy Number: 3-856-301 Term: June 14, 1971 - June 14, 1974 Amount: $102,990 Type of Coverage: Windstorm, Hurricane, Hail , Explosion, Riot , Civil Commotion, Smoke, Aircraft and Land Vehicles , Fire, Lightning, Vandalism, and Malicious Mischief Comprehensive General Liability (Except Automobile) Carrier: Aetna Life and Casualty Insurance Company Policy Number: 61AL-94344 Term: June 22, 1971 - June 22, 1974 Amount: BI $100,000/300,000 Property Damage $25,000 Type of Coverage: Waterworks, Outside Salesmen, Collectors and fl Meter Readers , etc. Exhibit I Page 3 of 4 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 Note 9: Redemption of Bonds The outstanding bonds of Clear Woods Improvement District , Harris County, Texas , are callable for redemption prior to maturity at the option of the District. The bonds may be called in whole or in part for the purpose of retirement or refunding, or both , at par in addition to unpaid accrued interest. Bonds of the Series 1967, 1967A and 1972 may be called on August 1 , 1982, February 1 , 1982 and April 1 , 1987, respectively, or any interest date thereafter. Note 10: Water and Sewer Service Customers The following is a comparison of the number of metered water and sewer service customers serviced by the District: 011116 April 30, 1974 504 April 30, 1973 343 April 30, 1972 310 April 30, 1971 230 April 30, 1970 150 April 30, 1969 101 April 30, 1968 22 Note 11 : Engineering Report The Bond Order dated February 1 , 1967, Section X, Paragraph I , states that a complete engineering inspection report of the operations and physical conditions of the plant and system shall be made each year by an independent qualified engineer. At the balance sheet date the report had not been made. Note 12: Proposed Bond Sale The District has $780,000 of bonds remaining out of $1 ,360,000 authorized by elections held June 5, 1971 . The District is presently seeking approval of the Texas Water Rights Commission for the sale of these additional bonds. Exhibit I Page 4 of 4 NOTES TO FINANCIAL STATEMENTS 0/4 CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 Note 13: Supplemental Coupons All bonds of the Series 1972 maturing in the years 1982 through 2001 , inclusive, totaling $570,000, have supplemental coupons attached so that the total interest paid on each bond shall be 9.00% per annum from May 1 , 1972 to October 1 , 1973. Exhibit F Page 2 of 2 GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS e CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 Principal Interest Interest Total For The Year Due Due Due Annual Ending April 30, Annually Semiannually Semiannually Requirements 1975 3o 000 59 825 59 825 149 65o 1976 3o 000 59 050 59 050 148 too 1977 35 000 58 275 58 275 151 550 1978 65 000 58 071 58 071 181 142 1979 65 000 55 613 55 613 176 226 1980 65 000 53 894 53 894 172 788 1981 70 000 52 175 52 175 174 350 1982 70 000 50 288 50 288 170 576 1983 95 000 48 400 48 400 191 800 1984 95 000 45 888 45 888 186 776 1985 100 000 43 375 43 375 186 750 1986 100 000 4o 694 4o 694 181 388 4006 1987 105 000 38 012 38 012 181 024 1988 120 000 35 163 35 163 190 326 1989 95 000 31 613 31 613 158 226 1990 95 000 28 688 28 688 152 376 1991 105 000 25 763 25 763 156 526 1992 130 000 22 500 22 500 175 000 1993 130 000 18 488 18 488 166 976 1994 130 000 14 475 14 475 158 950 1995 4o 000 10 463 10 463 6o 926 1996 40 000 9 113 9 113 58 226 1997 4o 000 7 763 7 763 55 526 1998 4o 000 6 413 6 413 52 826 1999 50 000 5 063 5 063 60 126 2000 50 000 3 375 3 375 56 750 2001 50 000 1 688 1 688 53 376 TOTALS 2 040 000 884 128 884 128 3 808 256 P The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit G GENERAL FIXED ASSETS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 Balances Balances May 1 , 1973 Additions April 30, 1974 Land 29 622 29 622 Drainage System 433 872 17 939 451 811 Sewer System 537 884 1 640 539 524 Water System 331 474 10 963 342 437 Engineering 143 609 143 609 Totals, Note 8 1 476 461 30 542 1 507 003 -0116. Additions Provided By Construction Fund Disbursed 21 570 Accrued 2 397 23 967 Reimbursable Transfer From Operating Fund 6 575 Total Funds Provided 30 542 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit H DISTRICT ORGANIZATIONAL COSTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 • Balances Balances May 1 , 1973 Additions April 30, 1974 Board of Equalization 150 150 Bond Printing 1 286 1 286 Bond Premiums For Officials 269 269 Bond Coupon Interest , Note 4 278 841 46 912 325 753 Discount on Bonds 30 000 30 000 Bookkeeping 1 850 1 850 Creation of District 1 151 1 151 j"• Directors' Per Diems 5 600 5 600 Elections 559 559 Legal Fees 131 794 131 794 Legal Notices 1 911 1 911 Office Supplies 93 93 Totals, Note 5 453 504 46 912 500 416 Additions Provided By Debt Service Fund 46 912 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule D-1 BOND INTEREST RESERVE CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 Bond Interest Reserve, May 1 , 1973 53 124 Deductions: Appropriation For Bond Coupon Interest , Note 4 $600,000 Series 1972 (46 912) Bond Interest Reserve, April 30, 1974 6 212 Oh The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit E RECEIPTS AND DISBURSEMENTS, DEBT SERVICE FUND AND CONSTRUCTION FUND CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1974 Debt Service Construction Fund Fund RECEIPTS Redemption of Certificates of Deposit 153 338 Interest Received on Certificates of Deposit 11 453 Transfers From Tax Fund 68 000 Transfers From Operating Fund 5 000 TOTAL RECEIPTS 237 791 -o- DISBURSEMENTS Purchase of Certificates of Deposit 81 083 Bond Coupon Interest 127 612 Bond Principal 30 000 Construction of Fixed Assets 21 570 Payment of Prior Year Accounts Payable 13 500 Reimbursable Payment For Operating Fund 1 567 TOTAL DISBURSEMENTS 238 695 36 637 EXCESS OF DISBURSEMENTS OVER RECEIPTS 904 36 637 CASH BALANCE, MAY 1 , 1973 1 393 44 124 CASH BALANCE, APRIL 30, 1974 489 7 487 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit F Page l of 2 GENERAL LONG-TERM DEB' CLEAR WOODS |MPRDVEMEN' API Debt Service Requirements For The Year Ending For The Year Ending April 30, 1975 April 30, 1976 Description principal Interest Principal Interest Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967 25 OOO 36 250 25 000 35 OUU Clear Woods Improvement District Waterworks and Sewer System � Combination Tex and Revenue Bonds, Series 1967A 5 000 42 900 5 000 42 60U Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1972, Note 13 40 500 40 500 TOTALS, Notes 3 and 9 30 000 119 650 30 000 118 700 The NOTES TO FINANCIAL STATEME1 r Exhibit C REVENUES , EXPENSES AND FUND BALANCE, TAX FUND CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1974 REVENUES Taxes Collected 67 435 Penalty and Interest 869 TOTAL REVENUES 68 304 EXPENSES Tax Assessor-Collector Fees 2 356 Board of Equalization 100 Publication of Legal Notices 24 Other 50 TOTAL EXPENSES 2 530 NET REVENUE, Note 3 65 774 FUND BALANCE , MAY 1 , 1973 8 196 Transfers to Debt Service Fund (68 000) FUND BALANCE, APRIL 30, 1974 5 970 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule C-1 TAXES RECEIVABLE 111/4 CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 Taxes Receivable, May 1 , 1973 4 855 Adjustments and Corrections ( 256) 1973 Original Tax Roll 72 527 Total to be Accounted For 77 126 Tax Collections: Current Year 65 994 Prior Years 1 441 67 435 Taxes Receivable, April 30, 1974 9 691 Taxes Receivable by Years 1969 28 1970 862 1971 953 1972 1 315 1973 6 533 Total Taxes Receivable 9 691 Property Valuations 1973 1972 1971 1970 Land 3 397 700 2 901 068 2 961 687 3 598 606 Improvements 8 541 500 6 014 835 5 469 840 4 169 325 Personal Property 148 600 -o- -o- -o- Total Valuations 12 087 800 8 915 903 8 431 527 7 767 931 Tax Rate Per $100 Valuation 0.60 0.50 0.50 0.50 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit D REVENUES, EXPENSES AND FUND BALANCE, DEBT SERVICE FUND CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1974 REVENUES Appropriation From Bond Interest Reserve, Schedule D-1 46 912 Interest Earned on Certificates of Deposit , Note 6 8 653 Transfer From Tax Fund , Note 3 68 000 Transfer From Operating Fund , Note 3 5 000 TOTAL REVENUES 128 565 Oh EXPENSES Bond Interest 127 612 Bond Principal 30 000 TOTAL EXPENSES 157 612 NET EXPENSES ( 29 047) FUND BALANCE, MAY 1 , 1973 153 515 FUND BALANCE, APRIL 30, 1974 124 468 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit A COMBINED BA CLEAR WOODS |MPKOVEMEl' AF General General ictiun Long-Tenn Fixed ,6 Debt Assets ASSET5 Cash A]7 Certificates of Deposit , Schedul, Accrued Interest Receivable, Sch( Accounts Receivable, Water and S, Accounts Receivable, Other Taxes Receivable, Schedule C-\ Prepaid Insurance, Note 8 Utility Deposit Due From Other Funds l 507 003 Fixed Assets Exhibit G ` 500 416 District Organizational Costs, E: Amount to be Provided For Retirement of General Long-Terr 2 0�O OOU Construct /on of Fixed Assets, 940 � TOTAL ASSETS /27 2 040 OOU 2 007 419 LIABILITIES , RESERVES AND FUND BAL/ Liabilities Accounts Payable |gb Refundable Customer Deposits Due to Other Funds ��) Bonds Payable, Exhibit F 2 O4O OUU Total Liabilities /27 2 O4U O0U -o- Reserves and Fund Balances Reserve For Bond Interest, Schedule D-1 Uncollected Taxes Investment in General Fixed , 2 007 419 Fund Balances Total Reserves and Fund h0- -o- 2 007 419 TOTAL LIABILITIES , RE5ER727 2 O4O 0OO 2 007 479 - The NOTES TO FINANCIAL 5TATEM| Schedule A-1 f CERTIFICATES OF DEPOSIT CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1974 Accrued Interest Interest Maturity Face Receivable Rate Date Amount April 30, 1974 Debt Service Fund Certificates of Deposit: No. 12899 5.50% 7/15/74 21 299 132 No. 15795 5.50% 7/15/74 35 484 219 No. 1394 5.50% 7/15/74 5 000 20 No. 16052 5.00% 7/15/74 68 000 37 Totals 129 783 408 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit B REVENUES, EXPENSES AND FUND BALANCE, OPERATING FUND CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1974 OPERATING REVENUES Water Service, Note 7 26 906 Sewer Service, Note 7 7 926 Trash Service 10 093 Penalty Charges 526 Sewer Inspections 700 Miscellaneous Income 35 TOTAL OPERATING REVENUES 46 186 OPERATING EXPENSES Monthly Services 14 350 Utilities 6 257 Professional Services 5 125 Repairs and Maintenance 9 026 Trash Expense 10 043 Paying Agents ' Fees 280 1111 Directors' Per Diems 1 450 Directors' Bond Premium 39 Insurance Expense 501 Office Supplies and Expense 973 Interest Expense 204 Laboratory Expense 1 800 Election Expense 160 Bad Debt Expense 260 Other 100 TOTAL OPERATING EXPENSES 50 568 NET OPERATING REVENUES ( 4 382) NON-OPERATING ITEMS Water Tap Fees 17 500 Water Tap Expense ( 8 810) 8 690 NET REVENUES , Note 3 4 308 FUND BALANCE , MAY 1 , 1973 8 944 Transfers to Debt Service Fund ( 5 000) FUND BALANCE, APRIL 30, 1974 _a_al The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. --ooOoo-- AUDIT REPORT CLEAR WOODS IMPROVEMENT DISTRICT > , HARRIS COUNTY, TEXAS -o- APRIL 30, 1974 --ooOoo-- --ooOoo-- C O N T E N T S Exhibit Schedule ACCOUNTANTS' REPORT COMBINED BALANCE SHEET, ALL FUNDS A CERTIFICATES OF DEPOSIT A-1 REVENUES , EXPENSES AND FUND BALANCE , OPERATING FUND B REVENUES , EXPENSES AND FUND BALANCE, TAX FUND C 014 TAXES RECEIVABLE C-1 REVENUES, EXPENSES AND FUND BALANCE , DEBT SERVICE FUND D BOND INTEREST RESERVE D-1 RECEIPTS AND DISBURSEMENTS, DEBT SERVICE FUND AND CONSTRUCTION FUND E GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS F GENERAL FIXED ASSETS G DISTRICT ORGANIZATIONAL COSTS H NOTES TO FINANCIAL STATEMENTS I --ooOoo-- WHITE, PETROV & MCHONE CERTIFIED PUBLIC ACCOUNTANTS 014 ROBERT A.WHITE 600 JEFFERSON SUITE 1150 JOSEPH W.PETROV HOUSTON,TEXAS 77002 ROBERT W. MCHONE TELEPHONE (713) 224-7758 STEPHEN H.CORDILL,JR. August 5, 1974 JOHN B. MANTHEY MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Board of Directors Clear Woods Improvement District Harris County, Texas We have examined the combined balance sheet , all funds , of CLEAR WOODS IMPROVEMENT DISTRICT, HARRIS COUNTY, TEXAS as of April 30, 1974, and the related statements of revenues , expenses and fund balances for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances . The District is in the developmental stage and construction of the fixed assets is not complete at the balance sheet date. In accordance with the suggestions of the Texas Water Rights Commission, the District did not depreciate its general fixed assets. We observed no departures by the District from the requirements of the bond orders except as described in detail in note 11 of the notes to financial statements. In our opinion, the accompanying combined balance sheet , all funds, and the related statements of revenues , expenses and fund balances present fairly the financial position of CLEAR WOODS IMPROVEMENT DISTRICT, HARRIS COUNTY, TEXAS as of April 30, 1974, and the results of its operations for the year then ended , in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. aii/e4 )624: X/Vc-d041/0,4d 4104 Our certificate or report upon an audit or examination is delivered to client with the understanding that any publication, advertisement, or copy therefrom, in full or in pert, of such certificate or report, shall be in the form to be approved by us.