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HomeMy WebLinkAbout1974 04 30 Single Audit Report - Clear woods Improvement District (2) Exhibit H DISTRICT ORGANIZATIONAL COSTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1973 Balances Balances May 1 , 1972 Additions April 30, 1973 Board of Equalization 150 150 Bond Printing 961 325 1 286 Bond Premiums for Officials 269 269 Bond Coupon Interest , Note 4 233 366 45 475 278 841 Discount on Bonds 30 000 30 000 Bookkeeping 1 850 1 850 Creation of District 1 127 24 1 151 Directors ' Per Diems 5 600 5 600 Elections 559 559 Legal Fees 111 104 20 690 131 794 Legal Notices 1 891 20 1 911 Office Supplies 47 46 93 Totals , Note 5 356 924 96 580 453 504 Additions Provided By Debt Service Fund 45 475 Construction Fund 21 105 General Long-Term Debt , Discount on Bonds 30 000 Total Funds Provided 96 580 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. l Exhibit I Page 1 of 3 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1973 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 administrative costs until construction of fixed assets is completed. Exhibit I Page 2 of 3 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1973 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. Interest on construction fund investments amounted to $5,709, for the current period. 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 (Minimum Bill ) 7.00 Each 1 ,000 Gallons of Water Used Thereafter .45 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 Trash Fee (Effective February 25, 1971 ) 2.50 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 Meter Readers, etc. Exhibit I Page 3 of 3 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1973 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: 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 said report had not been made. Note 12: Adjustment of Land Valuation Thirty acres of land at $21 ,230.63 per acre, for a total value of $636,919 was deleted from the 1971 tax roll as this land constituted drainage ditches. 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 I of 2 GENERAL LONG-TERM DEBT AND DEBT CLEAR WOODS IMPROVEMENT DISTRICT. APRIL 30, 19; Service Requirements Year Ending For The Year Ending 30, 1974 April 30, 1975 Description R.41 Interest Principal Interest Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967 5. 37 500 25 000 36 250 Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967A 6.' 43 200 • 5 000 42 900 Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1972, Note 13 6, 46 913 40 500 TOTALS, Notes 3 and 9 127 613 30 000 119 650 * Bonds were sold at 95% of par value The NOTES TO FINANCIAL STATEMENTS are at 1 J Exhibit F Page 2 of 2 GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1973 Principal Interest Interest Total For The Year Due Due Due Annual Ending April 30 Annually Semiannually Semiannually Requirements 1974 30 000 67 013 60 600 157 613 1975 3o 000 59 825 59 825 149 65o 1976 3o 000 59 050 59 050 148 100 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 198o 65 000 53 894 53 894 172 788 1981 7o 000 52 175 52 175 174 350 1982 70 000 50 288 50 288 170 576 1983 95 Goo 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 40 694 181 388 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 1► 1991 105 000 25 763 25 763 156 526 1992 130 000 22 500 22 500 175 000 1993 13o 000 18 488 18 488 166 976 1994 130 000 14 475 14 475 158 950 1995 4o 000 10 463 10 463 60 926 1996 4o 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 5o 000 5 063 5 063 6o 126 2000 50 000 3 375 3 375 56 750 2001 50 000 1 688 1 688 53 376 Totals 2 070 000 951 141 944 728 3 965 869 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report . I Exhibit G GENERAL FIXED ASSETS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1973 Balances Balances May 1 , 1972 Additions April 30, 1973 Land 29 622 29 622 Drainage System 155 676 278 196 433 872 Sewer System 495 182 42 702 537 884 Water System 286 529 44 945 331 474 Engineering 143 609 143 609 Totals , Note 8 1 110 618 365 843 1 476 461 Additions Provided By Construction Fund Disbursed 308 544 Accrued 57 �99 Total Funds Provided 365 843 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. e' k Exhibit E RECEIPTS AND DISBURSEMENTS, DEBT SERVICE FUND AND CONSTRUCTION FUND CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1973 Debt Service Construction Fund Fund RECEIPTS Proceeds from Bond Sale 98 599 471 401 Accrued Bond Interest Received at Time of Sale 6 782 Redemption of Certificates of Deposit 127 436 303 162 Interest Received on Certificates of Deposit 14 057 5 709 Interest Received on Certificates of Deposit Transferred from Construction Fund 5 709 Transfers from Tax Fund 40 000 TOTAL RECEIPTS 292 583 780 272 DISBURSEMENTS Purchase of Certificates of Deposit 158 571 303 162 Bond Coupon Interest 132 957 Construction of Fixed Assets 308 544 District Organizational Costs 21 105 Payment of Prior Year Accounts Payable 95 627 Reimbursable Payment for Operating Fund 2 020 Interest Received on Certificates of Deposit Transferred to Debt Service Fund 5 709 TOTAL DISBURSEMENTS 291 528 736 167 EXCESS OF RECEIPTS OVER DISBURSEMENTS 1 055 44 105 CASH BALANCE , MAY 1 , 1972 338 19 CASH BALANCE , APRIL 30, 1973 1 393 44 124 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule C-1 TAXES RECEIVABLE CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1973 Taxes Receivable, May 1 , 1972 6 190 1972 Original Tax Roll 44 580 Total to be Accounted For 50 770 Tax Collections: Current Year 42 247 Prior Years 3 668 45 915 Taxes Receivable, April 30, 1973 4 855 Taxes Receivable by Years /969 142 1970 886 1971 1 494 1972 2 333 Total Taxes Receivable 4 855 Property Valuations 1972 1971 1970 1969 Land , Note 12 2 901 068 2 961 687 3 598 606 2 540 796 Improvements 6 014 835 5 469 840 4 169 325 2 276 032 Total Valuations 8 915 903 8 431 527 7 767 931 4 816 828 Tax Rate Per $100 Valuation 0.50 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, 1973 REVENUES Appropriation from Bond Interest Reserve, Schedule D-1 45 475 Interest Earned on Certificates of Deposit , Note 6 18 106 Accrued Bond Interest Received at Time of Sale 6 782 Transfer from Tax Fund 40 000 TOTAL REVENUES 110 363 EXPENSES Bond Interest 132 957 01 NET EXPENSES ( 22 594) FUND BALANCE, MAY 1 , 1972 176 109 FUND BALANCE, APRIL 30, 1973 153 515 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule D-f BOND INTEREST RESERVE CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1973 Bond Interest Reserve, May 1 , 1972 -o- Additions: Two Years Interest During Construction Period , Note 4 $600,000 Series 1972 98 599 Deductions: Bond Interest Transferred to Debt Service Fund , Note 4 $600,000 Series 1972 (45 475) Bond Interest Reserve, April 30, 1973 53 124 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, 1973 OPERATING REVENUES Water Service, Note 7 30 954 Sewer Service, Note 7 10 297 Trash Service, Note 7 8 846 Penalty Charges 345 Sewer Inspections 180 Miscellaneous Income 5 TOTAL OPERATING REVENUES 50 627 OPERATING EXPENSES Monthly Services 12 590 Utilities 6 123 Bookkeeping and Audit 2 200 Repairs and Maintenance 9 425 Trash Expense 8 846 Paying Agents Fees 75 Director's Per Diems 2 075 Director's Bond Premium 121 ft Insurance Expense 501 Office Supplies and Expense 518 Interest Expense 168 Laboratory Expense 2 000 Election Expense 558 TOTAL OPERATING EXPENSES 45 200 NET OPERATING REVENUES 5 427 NON-OPERATING ITEMS Water Tap Fees 4 855 Water Tap Expense ( 1 400) 3 455 NET REVENUES, Note 3 8 882 FUND BALANCE , MAY 1 , 1972 62 FUND BALANCE, APRIL 30, 1973 8 944 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit C REVENUES, EXPENSES AND FUND BALANCE, TAX FUND CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1973 REVENUES Taxes Collected 45 915 Penalty and Interest 677 Tax Certificates 184 TOTAL REVENUES 46 776 EXPENSES Tax Assessor-Collector Fees 1 902 Legal Fees 200 Publication of Legal Notices 43 Other 68 111 TOTAL EXPENSES 2 213 NET REVENUE, Note 3 44 563 FUND BALANCE, MAY 1 , 1972 3 633 Transfers to Debt Service Fund (40 000) FUND BALANCE , APRIL 30, 1973 8 196 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. I --00000-- AUDIT REPORT CLEAR WOODS IMPROVEMENT DISTRICT HARRIS COUNTY, TEXAS -o- APRIL 30, 1973 --00000-- u --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 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 --o00oo-- WHITE, PETROV & MCHONE CERTIFIED PUBLIC ACCOUNTANTS ROBERT A.WHITE 600 JEFFERSON • SUITE 1150 JOSEPH W.PETROV February 2, 1974 HOUSTON,TEXAS 77002 ROBERT W. MCHONE MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS TELEPHONE (713) 224-7758 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, 1973, 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, 1973, 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. The supplementary information contained in this report has been subjected to the tests and other auditing procedures applied in the examination of the financial statements mentioned above, and, in our opinion, is fairly stated in relation to the financial statements taken as a whole. G�ti� gI /T4A 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 part,of such certificate or report, shall be in the form to be approved by us. ( / TRIC General General Long-Term Fixed _2e.bt Assets ( A S E 7 s Cash Certificates Certif/cates of Deposit, Schedule A-) Accrued Interest RecmivabYe, Sch�6u)e A~Y / Accounts Receivable, Water and Sewer Servi Accounts Receivable, Other / Taxes Receivable, Schedule C~l Prepaid Insurance, Note 8 Utility Deposit Due from Other Funds | / Fixed Assets, Exhibit G l 476 467 District Organizational Costs, -Exhibit H �53 504 | Amount to be Provided For Retirement of General Long-Term Debt 2 070 OOO Construction of Fixed Assets TOTAL ASSETS 2 070 DOO 7 929 965 LIABILITIES, RESERVES AND FUND BALANCES — Liabilities Accounts Payable Refundable Customer Deposits Due to Other Fundy 2 070 OOO Bonds Payable, Exhibit F Total Liabilities 2 070 ODO -o- Reserves and Fund Balances � Reserve For Bond Interest Uncollected Taxes l 929 g65 Investment in General Fixed Assets - Fund Balances -o- l 929 965 Total Reserves and Fund Balances 2 070 OOO l 929 965 TOTAL LIABILITIES, RESERVES AND F The NOTES TO FINANCIAL STATEMENTS are L Schedule A-1 k CERTIFICATES OF DEPOSIT CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1973 Accrued Interest Interest Maturity Face Receivable Rate Date Amount April 30, 1973 Debit Service Fund Certificates of Deposit No. 8378 5.50% 7/25/73 40 000 1 687 No. 10608 5.00% 7/20/73 7 000 96 No. 10605 5.00% 9/20/73 20 000 274 No. 10606 5.50% 3/20/74 20 000 301 No. 9550 5.00% 9/14/73 6 000 35 No. 17443 7.00% 1/5/74 109 038 815 Totals 202 038 3 208 Mk he NOTES TO FINANCIAL STATEMENTS are an integral part of this report.