The URL can be used to link to this page

Home My WebLink About1971 04 30 Single Audit Report - Clear woods Improvement District D --ooOoo-- AUDIT REPORT CLEAR WOODS IMPROVEMENT DISTRICT HARRIS COUNTY, TEXAS -o- APRIL 30, 1971 --ooOoo-- i --ooOoo-- C O N T E N T S Exhibit Schedule ACCOUNTANTS' REPORT BALANCE SHEET, ALL FUNDS A SUMMARY OF INVESTMENTS A-1 REVENUE, EXPENSE AND FUND BALANCE, OPERATING FUND B REVENUE, EXPENSE AND FUND BALANCE, TAX FUND C TAXES RECEIVABLE C-1 CASH RECEIPTS AND CASH DISBURSEMENTS, BOND AND INTEREST FUND AND CONSTRUCTION FUND D BONDED DEBT AND DEBT SERVICE REQUIREMENTS E SUMMARY OF FIXED ASSETS F DISTRICT ORGANIZATIONAL EXPENSE G NOTES TO FINANCIAL STATEMENTS H --ooOoo-- 1 � WHITE, PETROV & MCHONE CERTIFIED PUBLIC ACCOUNTANTS HOUSTON,TEXAS 77002 ROBERT A.WHITE 509 BANK OF THE SOUTHWEST JOSEPH W.PETROV BUILDING ROBERT W.MCHONE CA 4-7758 J MEMBERS AMERICAN INSTITUTE OF July 25, 1971 CERTIFIED PUBLIC ACCOUNTANTS Board of Directors Clear Woods Improvement District Harris County, Texas We have examined the balance sheet, all funds, of CLEAR WOODS IMPROVEMENT DISTRICT as of April 30, 1971 , and the related statements of operations 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 facilities is not complete at the date of this report. The District did not depreciate the fixed assets. We observed no departures by the District from the requirements of the bond order except that described in detail in note 5 of the notes to financial statements. In our opinion, the accompanying balance sheet, all funds, and the related statements of operations present fairly the financial position of CLEAR WOODS IMPROVEMENT DISTRICT as of April 30, 1971 , and the results of its operations for the year then ended, in con- formity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. II Exhibit A BALANCE SHEET, AL CLEAR WOODS IMPROVEME APRIL 30, 19 Construction Asset Fund Fund ASSETS Cash 2 748 Certificates of Deposit, Schedule A-1 Accrued Interest Receivable, Schedule A-1 Accounts Receivable, Water and Sewer Servic Accrued Revenue Receivable, Water and Sewer Utility Deposit Taxes Receivable, Schedule C-1 Due from Other Funds 13 270 Fixed Assets, Exhibit F 1 012 236 District Organizational Expense, Exhibit G 328 687 Funds to be Provided by Future Revenue TOTAL ASSETS 16 018 1 340 923 LIABILITIES, RESERVES AND FUND BALANCES Accounts Payable Accounts Payable, Other, Note 10 Refundable Customer Deposits Deferred Water Tap Revenue Due to Other Funds Bonds Payable, Exhibit E Reserve for Uncollected Taxes Reserve for Authorized Construction 16 018 Investments in Capital Assets 1 340 923 Fund Balances TOTAL LIABILITIES, RESERVES .AND FUN 16 018 1 340 923 The NOTES TO FINANCIAL STATEMENTS are an 4 k IL Schedule A-1 SUMMARY OF INVESTMENTS CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1971 Accrued Interest Interest Maturity Face Receivable Rate Date Amount Apri130, 1971 Certificates of Deposit Bond and Interest Fund #6686 5% 7/26/71 130 921 1 722 #6171 52% 7/25/72 50 000 452 Total , Bond and Interest Fund 180 921 2 174 Operating Account #6974 5% 7/20/71 5 000 25 Totals 185 921 2 199 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report . I Exhibit B REVENUE , EXPENSE AND FUND BALANCE, OPERATING FUND CLEAR WOODS IMPROVEMENT DISTRICT FOR THE YEAR ENDED APRIL 30, 1971 OPERATING REVENUE Water Services, Note 9 18 117 Sewer Services, Note 9 5 338 Sewer Inspections 270 Garbage Service, Note 9 5 052 Penalty Charges 295 Interest Income 111 TOTAL OPERATING REVENUE 29 183 OPERATING EXPENSE Audit 1 200 Bookkeeping 750 Bond Premiums for District Officials 33 Directors ' Per Diems 1 075 Elections 225 Garbage Expense 4 335 Interest 85 Laboratory Expenses 700 Legal 1 575 Management of System 9 600 Office Supplies and Expense 172 Publication of Legal Notices 993 Repairs and Maintenance 1 796 Utilities 4 902 TOTAL OPERATING EXPENSE 27 441 NET OPERATING REVENUE 1 742 NON-OPERATING ITEMS Water Tap Fees 4 925 Water Tap Expense ( 1 950) 2 975 NET REVENUE FOR YEAR, Note 8 4 717 FUND BALANCE, MAY 1 , 1970 5 099 CONTRIBUTION TO BOND AND INTEREST FUND (10 000) FUND BALANCE, APRIL 30, 1971 ( 184) The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit C REVENUE, EXPENSE AND FUND BALANCE, TAX FUND CLEAR WOODS IMPROVEMENT DISTRICT FOR THE YEAR ENDED APRIL 30, 1971 REVENUE Taxes 34 177 Penalty and Interest 247 TOTAL REVENUE 34 424 EXPENSE Board of Equalization Fees 225 Bond Premium for Assessor-Collector 8 Office Supplies and Expense 2 Publication of Legal Notices 19 Tax Assessor-Collector Fees 1 500 TOTAL EXPENSE 1 754 NET REVENUE FOR THE YEAR, Note 8 32 670 FUND BALANCE, MAY 1 , 1970 16 177 Contribution to Bond and Interest Fund (40 000) FUND BALANCE, APRIL 30, 1971 8 847 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule C-1 TAXES RECEIVABLE CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1971 Taxes Receivable, May 1 , 1970 6 613 Original 1970 Tax Roll 38 84o Adjustments ( 789) 38 051 Total to be Accounted for 44 664 Taxes Collected May 1 , 1970 - April 30, 1971 (34 177) Taxes Receivable, April 30, 1971 10 487 Taxes Receivable by Years 1969 3 592 1970 6 895 Total Taxes Receivable 10 487 Property Valuations 1970 1969 Land 3 598 606 2 540 796 Land Improvements 4 169 325 2 276 032 Personal Property -o- -o- Totals 7 767 931 4 816 828 Tax Rate Per $100 Valuation 0.50 0.50 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit D CASH RECEIPTS AND CASH DISBURSEMENTS BOND AND INTEREST FUND AND CONSTRUCTION FUND CLEAR WOODS IMPROVEMENT DISTRICT FOR THE YEAR ENDED APRIL 30, 1971 Bond and Interest Construction Total Fund Fund CASH RECEIPTS Redemption of Certificates of Deposit 263 500 263 500 Interest Received on Certificates of Deposit 10 920 10 920 Refund from Tax Account 225 225 Receipts from Other Funds 50 000 50 000 TOTAL CASH RECEIPTS 324 645 324 420 225 CASH DISBURSEMENTS Construction of Fixed Assets 4 405 4 405 Payment of Prior Year's Payables 36 321 36 321 Payments for Operating Fund 7 926 7 926 Bond Coupon Interest 80 700 80 700 Purchase of Certificates of Deposit 244 421 244 421 TOTAL CASH DISBURSEMENTS 373 773 325 121 48 652 NET RECEIPTS (DISBURSEMENTS) ( 49 128) ( 701 ) (48 427) CASH BALANCE, MAY 1 , 1970 52 016 841 51 175 CASH BALANCE, APRIL 30, 1971 2 888 140 2 748 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit E Page 1 of 2 BONDED DEBT AND DEBT SERV CLEAR WOODS IMPROVEMI APRIL 30, 1! Service Requirements Ending Year Ending 30, 1972 April 30, 1973 Description 1 Interest Principal Interest Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967 37 500 -o- 37 500 Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967-A 43 200 -o- 43 200 1 Totals, Note 8 80 700 -o- 80 700 The NOTES TO FINANCIAL STATEMENTS are ar Exhibit E Page 2 of 2 BONDED DEBT AND DEBT SERVICE REQUIREMENTS CLEAR WOODS IMPROVEMENT DISTRICT 1 1 APRIL 30, 1971 Principal Interest Interest Total Due Due Due Annual February 1 February 1 August 1 Requirements 1971 40 350 40 350 1972 40 35o 4o 35o 8o 700 1973 4o 35o 4o 350 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 3o 000 38 025 37 25o 105 275 1978 6o 000 37 250 35 700 132 95o 1979 6o 000 35 700 34 150 129 85o 1980 60 000 34 150 32 600 126 750 1981 6o 000 32 600 31 050 123 65o 1982 60 000 31 050 29 500 120 550 1983 85 000 29 500 27 325 141 825 1984 85 000 27 325 25 150 137 475 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 11 250 9 000 95 25o 1992 100 000 9 000 6 000 115 000 1993 100 000 6 000 3 000 109 000 1994 too 000 3 000 103 000 Totals 1 470 000 611 075 611 075 2 692 150 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report . Exhibit F SUMMARY OF FIXED ASSETS CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1971 Balances Balances May 1 , 1970 Additions April 30, 1971 Land 29 622 29 622 Drainage System 152 631 3 045 155 676 Sewer System 401 224 401 224 Water System 278 675 3 430 282 105 Engineering 143 609 143 609 Total , Note 3 1 005 761 6 475 1 012 236 Source of Funds Construction Fund 4 405 Operating Fund 2 070 Total Funds Provided 6 475 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit G DISTRICT ORGANIZATIONAL EXPENSE CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1971 Balances Balances May 1 , 1970 Additions April30, 1971 Board of Equalization 150 150 Bond Printing 961 961 Bond Premiums for Officials 269 269 Bond Coupon Interest 136 386 69 530 205 916 Bookkeeping 1 850 1 850 Creation of District 1 127 1 127 Directors ' Per Diems 5 600 5 600 Elections 402 402 Legal Fees 111 104 111 104 Legal Notices 1 261 1 261 Office Supplies 47 47 Totals, Note 6 259 157 69 530 328 687 Source of Funds Bond and Interest Fund 80 700 Less Interest Earned on Certificates of Deposit, Note 7 ( 11 170) Total Funds Provided 69 530 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. 1 Exhibit H Page 1 of 3 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1971 Note 1 : Clear Woods Improvement District was created by House Bill No. 840, 59th Legislature, Regular Session, 1965, and signed by the Governor on June 17, 1965. Note 2: The exhibits and supporting schedules contained in this report are prepared on the accrual method of accounting except for Exhibit D , which is prepared on a cash basis. Note 3 : 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 4: The following is a comparison of water and sewer service customers within the District : April 30, 1971 230 April 30, 1970 150 April 30, 1969 101 April 30, 1968 22 Exhibit H Page 2 of 3 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1971 Note 5: 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 6: The District has elected to capitalize and charge to District Organizational Expense certain expense incurred for the creation of the District and some administrative expense until construction of the facilities is completed. Note 7: In accordance with the bond order, sufficient funds to pay the bond coupon interest for three years were set aside in the Bond and Interest Fund. This interest, less interest earned on certificates of deposit, is being capitalized as a District Organizational Expense. Note 8: 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 9: The District has established the following water and sewer service rates effective December 6, 1966: Combined Water and Sewer Service First 8,000 Gallons of Water Used 7.00 Each 1 ,000 Gallons of Water Used Thereafter .45 Minimum Bill 7.00 Water Service Only First 8,000 Gallons of Water Used 5.00 Each 1 ,000 Gallons of Water Used Thereafter .45 Minimum Bill 5.00 Sewer Service Only Sewer Service 2.00 Minimum Bill 2.00 Garbage Fee (Effective February 25, 1971 ) 2.50 1 Exhibit H Page 3 of 3 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1971 Note 10: The District collects from the water and sewer service customers an additional $1 .25 each month to pay for the services of the Friendswood Volunteer Fire Department . At the balance sheet date, $673 had been collected for the department.