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Home My WebLink About1972 04 30 Single Audit Report - Clear woods Improvement District I i --oo000-- AUDIT REPORT CLEAR WOODS IMPROVEMENT DISTRICT HARRIS COUNTY, TEXAS -o- APRIL 30, 1972 --oo000-- --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, 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-- 1 WHITE, PETROV & MCHONE CERTIFIED PUBLIC ACCOUNTANTS ROBERT A.WHITE 600 JEFFERSON • SUITE 1150 JOSEPH W.PETROV HOUSTON,TEXAS 77002 ROBERT W. MCHONE August 18, 1972 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, 1972, 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 8 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, 1972, 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. 4(/ / / 4;; _ Our certificate or report upon en 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. Exhibit A COMBINED BALANCE SH CLEAR WOODS IMPROVEMENT D|STR|[ APRyL 30, / General General Long-Term Fixed Debt Assets A5SETS Cash Certificates of Deposit, Schedule A-1 / Accrued Interest Receivable, Schedule A-1 ' Accounts Receivable Water and Sewer Servl Accounts Receivable, Other Taxes Receivable, Schedule C,l Prepaid Insurance, Note 4 Utility Deposit / Due from Other Funds l llO 618 Fixed Assets, Exhibit Q District Organizational Costs, Exhibit H 356 924 Amount to be Provled For: Retirement of General Long-Term Bab1 l 470 OOO Construction of Fixed Assets, Note 71 - / TOTAL ASSETS j 470 000 l 467 542 LIABILITIES, RESERVES AND FUND BALANCES Liabilities \ Accounts Payable / Refundable Customer Deposits Deferred Water Tap Revenue Due to Other Funds Bonds Payable, Exhibit F and Note 17 l 470 ODO Total Liabilities l 470 000 -o- Reservas and Fund Balances / Reserve For Uncollected Taxes Investment in General Fixed Assets | 467 542 � Fund Balances - - -o- Total Reserves and Fund Balances -o- l 467 542 TOTAL LIABILITIES, RESERVES AND | Y 470 OOU | 467 542 The NOTES TO FINANCIAL STATEMENTS are L t Schedule A-1 k CERTIFICATES OF DEPOSIT CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30_, 1972 Accrued Interest Interest Maturity Face Receivable Rate Date Amount April 30, 1972 Debit Service Fund Certificate of Deposit No. 8523 4.75% 7/19/72 65 694 855 No. 8559 4.75% 7/25/72 5 209 64 No. 14067 5.00% 7/25/72 36 000 335 No. 6171 5.50% 7/25/72 50 000 3 202 No. 7026 5.00% 7/25/72 14 000 412 Totals 170 903 4 868 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, 1972 OPERATING REVENUES Water Service, Note 3 27 702 Sewer Service, Note 3 8 914 Trash Service, Note 3 7 204 Penalty Charges 363 Sewer Inspections 295 Interest Income 184 Miscellaneous Income 151 TOTAL OPERATING REVENUES 44 813 OPERATING EXPENSES Monthly Services 9 850 Utilities 6 068 Legal Fees 1 900 Bookkeeping and Audit 1 794 Repairs and Maintenance 10 534 Trash Expense 7 130 Sewer Inspection Expense 3 230 Director's Per Diems 1 325 Director' s Bond Premium 33 Insurance Expense 632 Office Supplies and Expense 345 Interest Expense 112 Bad Debts Expense 280 TOTAL OPERATING EXPENSES 43 233 NET OPERATING REVENUES 1 580 NON-OPERATING ITEMS Water Tap Fees 6 250 Water Tap Expense ( 2 375) 3 875 NET REVENUES, Note 5 5 455 FUND BALANCE, MAY 1 , 1971 ( 184) Transfer to Debt Service Fund ( 5 209) FUND BALANCE, APRIL 30, 1972 62 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. U Exhibit I Page 3 of 4 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1972 ,( Note 7: 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. Note 8: 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 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 and 1967A may be called on August 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, 1972 310 April 30, 1971 230 April 30, 1970 150 April 30, 1969 101 April 30, 1968 22 f Exhibit I Page 4 of 4 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1972 Note 11 : Sale of Additional Bonds On June 5 , 1971 , the qualified voters of the District authorized the issuance of $1 ,380,000 of additional bonds. The Board of Directors on March 23, 1972, determined to issue a first series of $600,000 of bonds out of the $1 ,380,000 authorized. The bonds are called "Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1972", are dated April 1 , 1972, and bear interest from that date until paid at the rate of 6.75% per annum. These bonds were sold on May 24, 1972 at 95% of par plus accrued interest from April 1 , 1972. Note 12: Reclassifications The debt service fund and the general long-term debt are shown separately this year; these funds were combined in prior years. The reserve for bond interest , explained in note 6 of notes to financial statements is shown separately from the fund balance of the debt service fund. In prior years, the reserve was included in the fund balance. Note 13: 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. r Exhibit F ( Page l of 2 GENERAL LONG-TERM DEBT AND D CLEAR WOODS IMPROVEMENT D|STH APR|L 30, ) t Service Requirements Year Ending Year Ending )rll 30, 1973 April 30, 1974 Description |pal Interest Principal Interest / Clear Woods Improvement District Waterworks and Sewer System Combination Taw and Revenue Bonds, Series 1967 37 SOO 25 OOO 37 500 / Clear Woods Improvement District � Waterworks and Sewer System . Combination Tax and Revenue Bonds, Series 1967-A __ 43 200 5 OOO 43 200 Totals, Notes 9 and ll 2= 80 700 30 OOO 80 700 The NOTES TO FINANCIAL STATEMENTS art 1 Exhibit F Page 2 of 2 GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1972 Principal Interest Interest Total Due Due Due Annual February 1 February 1 August 1 Requirements 1972 40 350 40 350 1973 4o 35o 4o 35o 80 700 1974 30 000 40 350 39 575 109 925 1975 3o 000 39 575 38 800 108 375 1976 3o 000 38 800 38 025 106 825 1977 30 000 38 025 37 250 105 275 1978 60 000 37 250 35 700 132 950 1979 6o 000 35 700 34 150 129 850 1980 60 000 34 150 32 60o 126 75o 1981 60 000 32 600 31 050 123 650 1982 6o 000 31 050 29 500 120 550 1983 85 000 29 500 27 325 141 825 1984 85 000 27 325 25 15o 137 475 1985 85 000 25 150 22 975 133 125 1986 85 000 22 975 20 800 128 775 1987 85 000 20 800 18 625 124 425 1988 100 000 18 625 15 750 134 375 1989 75 000 15 750 13 500 104 25o 1990 75 000 13 500 11 250 99 750 1991 75 000 11 25o 9 000 95 250 1992 100 000 9 000 6 000 115 000 1993 100 000 6 000 3 000 109 000 1994 100 000 3 000 103 000 Totals 1 470 000 570 725 570 725 2 611 450 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, 1972 Balances Balances May 1 , 1971 Additions April 30, 1972 Land 29 622 29 622 , Drainage System 155 676 155 676 Sewer System 401 224 93 958 495 182 Water System 282 105 4 424 286 529 Engineering 143 609 14 609 Total , Note 4 1 012 236 98 382 1 110 618 Additions Provided By: Construction Fund Accrued 95 626 Operating Fund Disbursed 2 295 Accrued 461 2 756 Total Funds Provided 98 382 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, 1972 Balances Balances May 1 , 1971 Additions April 30, 1972 Board of Equalization 150 150 Bond Printing 961 961 Bond Premiums for Officials 269 269 Bond Coupon Interest , Note 6 205 916 27 450 233 366 Bookkeeping 1 850 1 850 Creation of District 1 127 1 127 Directors' Per Diems 5 600 5 600 Elections 402 157 559 Legal Fees 111 104 111 104 Legal Notices 1 261 630 1 891 Office Supplies 47 Totals, Note 7 328 687 28 237 356 924 Additions Provided By: Debt Service Fund 27 450 Construction Fund 787 Total Funds Provided 28 237 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. r Exhibit I Page 1 of 4 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1972 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 E which was prepared on a cash basis. Note 3: 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 7.00 (Minimum Bill ) 7.00 Each 1 ,000 Gallons of Water Used Thereafter .45 Water Service Only First 8,000 Gallons of Water Used 5.00 (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 Exhibit I Page 2 of 4 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1972 Note 4: 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. Note 5: 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 6: 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. Schedule D-1 BOND INTEREST RESERVE CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS Bond Interest Reserve, May 1 , 1971 , Note 12 27 450 Bond Interest Transferred to Debt Service Fund, Note 6 Bond Interest Reserve, April 30, 1972 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. l Exhibit E RECEIPTS AND DISBURSEMENTS, CONSTRUCTION FUND CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1972 RECEIPTS -o- DISBURSEMENTS Payments for Operating Fund 1 942 Payment of District Organizational Cost 787 TOTAL DISBURSEMENTS 2 729 EXCESS DISBURSEMENTS OVER RECEIPTS (2 729) CASH BALANCE, MAY 1 , 1971 2 748 CASH BALANCE, APRIL 30, 1972 _119 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, 1972 REVENUES Taxes 45 614 Penalty and Interest 917 TOTAL REVENUES 46 531 EXPENSES Tax Assessor-Collector Fees 1 500 Legal Fees 200 Publication of Legal Notices 20 Fidelity Bond Premium 25 TOTAL EXPENSES 1 745 NET REVENUE, Note 5 44 786 FUND BALANCE, MAY 1 , 1971 8 847 Transfers to Debt Service Fund (50 000) FUND BALANCE, APRIL 30, 1972 3 633 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. RECEIVABLESchedule C-1 TAXES WOODSCLEAR 1 DISTRICT--HARRIS COUNTY, TEXAS 1971 Original Tax ' . Additions and Corrections ( 84o) Adjusted Tax Roll 41 317 Total to be Accounted For 51 8o4 Tax Collections: Current Year 37 556 Taxes Receivable, April 30, 1972 Taxes Receivable by Years 1970 'ft Total _. • 190 Property Valuations 1971 1970 1969 Note 13 2 961 687 3 598 .1• 2 540 796 Tax Rate Per 11 Valuation 0.50 0.50 0.50 Exhibit D REVENUES, EXPENSES AND FUND BALANCE, DEBT SERVICE FUND CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1972 REVENUES Appropriation from Bond Interest Reserve, Schedule D-1 27 450 Interest Earned on Certificates of Deposit 8 366 Transfer from Operating Fund 5 209 Transfer from Tax Fund 50 000 TOTAL REVENUES 91 025 EXPENSES Bond Interest 80 700 NET REVENUE 10 325 FUND BALANCE, MAY 1 , 1971 , Note 12 165 784 FUND BALANCE, APRIL 30, 1972 176 109 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report.