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Home My WebLink About1970 04 30 Single Audit Report - Clear woods Improvement District --00000-- AUDIT REPORT CLEAR WOODS IMPROVEMENT DISTRICT HARRIS COUNTY, TEXAS -o- APRIL 30, 1970 --ooOoo-- --ooOoo-- C O N T E N T S Exhibit Schedule ACCOUNTANTS' REPORT BALANCE SHEET, ALL FUNDS A CERTIFICATES OF DEPOSIT MATURITY SCHEDULE A-1 REVENUE, EXPENSE AND FUND BALANCE, OPERATING FUND B REVENUE, EXPENSE AND FUND BALANCE, TAX FUND C TAXES RECEIVABLE C-1 CASH TRANSACTIONS, BOND AND INTEREST FUND D BONDED DEBT AND DEBT SERVICE REQUIREMENTS D-1 CASH TRANSACTIONS, CONSTRUCTION FUND E SUMMARY OF PERMANENT FACILITIES F DISTRICT ORGANIZATIONAL EXPENSE G NOTES TO FINANCIAL STATEMENTS H --ooOoo-- WHITE, PETROV & MCHONE CERTIFIED PUBLIC ACCOUNTANTS HousTON,TExis 77002 ROBERT A.WHITE 509 BANK OF THE SOUTHWEST JOSEPH W.PSTROv BUILDING *OUR?W.McHoNe CA 4-7759 MEMBERS AMERICAN INSTITUTE OF June 22, 1970 CERTIFIED PUBLIC ACCOUNTANTS The Board of Directors Clear Woods Improvement District Harris County, Texas We have examined the balance sheet of CLEAR WOODS IMPROVEMENT DISTRICT as of April 30, 1970, and the related statements of operations for each fund for the three years 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 facilities is not complete at the date of this report. We observed no departure by the District from the requirements of the bond order except failure to have adequate insurance coverage on facilities. In our opinion, the accompanying balance sheet and supporting exhibits and schedules present fairly the financial position of CLEAR WOODS IMPROVEMENT DISTRICT as of April 30, 1970, and the results of its operations for the three years then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. 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. Exhibit 4 / BALANCE SHEET, ALL CLEAR WOODS |MPROVEMEN* APR| L 30, 197/ Construction Asset Fund Fund ASSETS ' Cash 51 174 85 Certificates of Deposit, Schedule A-1 Accrued Interest Receivable/ Schedule A-1 Accounts Receivable, Water and Sewer Service Cu Tames Receivable, Schedule C-1 Due From Other Funds lU 275 DO Utility Deposit 200 OO Permanent Facilities, Exhibit E 1 005 760 59 District Organizational Expense, Exhibit F 259 157 21 Y Funds to be provided by Future Revenue TOTAL ASSETS 61 649 85 1 264 917 80 LIABILITIES, RESERVES AND FUND BALANCES Accounts Payable 39 071 20 Customer Deposits Accrued Bond Coupon Interest to April 30, IS Accrued Bond Coupon Interest for the Year Ending April 30, 1971 , Schedule D-1 Bonds Payable, Schedule D-1 Due to Other Funds Reserve for Uncollected Taxes Reserve for Expenditures 22 578 65 investment in Capital Assets l 264 917 80 Fund Balances TOTAL L|A8/ L|T|ES, RESERVES AND FUND8. 61 649 85 l 264 917 80 The NOTES TO FINANCIAL STATEMENTS are an Schedule A-1 CERTIFICATES OF DEPOSIT MATURITY SCHEDULE CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1970 Accrued Interest Face Interest Maturity Receivable Amount Rate Date April 30, 1970 Bond and Interest Fund #5480 100 000 00 7% 1/24/71 57 74 #5309 100 000 00 7% 7/24/71 1 866 68 Totals 200 000 00 1 924 42 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit B REVENUE, EXPENSE AND FUND BALANCES, OPERATING FUND CLEAR WOODS IMPROVEMENT DISTRICT FOR THE YEARS ENDED APRIL 30, 1970, 1969 AND 1968 1970 1969 1968 OPERATING REVENUE Water Revenue 12 164 03 6 288 08 375 80 Sewer Revenue 3 185 00 1 637 00 78 00 Sewer Inspections 240 00 460 00 310 00 Garbage Revenue 3 216 12 1 573 00 100 00 Late Charges 126 15 59 41 TOTAL OPERATING REVENUE 18 931 30 10 017 49 863 80 OPERATING EXPENSE Interest on Customer Deposits 76 22 22 82 Garbage Collection 2 731 25 1 233 75 49 00 Management Services 7 400 00 6 750 00 Office Supplies 284 57 117 52 84 14 Repairs and Maintenance 862 45 545 73 17 25 Utilities 4 179 41 2 815 98 51 45 Water Purchased From Other Districts 278 30 4 035 75 568 10 TOTAL OPERATING EXPENSE 15 812 20 15 521 55 769 94 NET OPERATING REVENUE (EXPENSE) 3 119 10 ( 5 504 06) 93 86 NON-OPERATING ITEMS Water Tap Fees 5 775 00 9 200 00 5 400 00 Water Tap Expense 3 040 00 5 840 00 4 105 00 TOTAL NON-OPERATING ITEMS 2 735 00 3 36o 00 1 295 00 BEGINNING FUND BALANCE ( 755 20) 1 388 86 -o- ENDING FUND BALANCE 5 098 90 ( 755 20) 1 388 86 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, 1970 REVENUE Taxes 17 584 98 Penalty and Interest 42 05 Total Revenue 17 6�7 03 EXPENSE Bank Service Charges 4 73 Tax Assessor-Collector Fees 1 445 05 Total Expense 1 449 78 NET REVENUE 16 177 25 BEGINNING FUND BALANCE -o_ ENDING FUND BALANCE 16 177 25 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule C-1 TAXES RECEIVABLE CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1970 1969 Tax Roll 26 840 26 Adjustments to Tax Roll ( 2 642 63) 1969 Adjusted Tax Roll 24 197 63 Collections Through April 30, 1970 17 584 98 Taxes Receivable, April 30, 1970 6 612 65 1969 Tax Valuations Land 2 540 796 00 Improvements 2 276 032 00 Total 4 816 828 00 Rate Per $100 Valuation 0.50 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit D CASH TRANSACTIONS, BOND AND INTEREST FUND CLEAR WOODS IMPROVEMENT DISTRICT FOR THE YEARS ENDED APRIL 30, 1970, 1969 AND 1968 1970 1969 1968 CASH RECEIPTS From the Sale of Bonds, Note 4 342 000 00 130 500 00 Accrued Interest Received on Sale of Bonds 22 204 16 5 624 97 Redemptions of Certificates of Deposit 779 865 94 168 104 55 117 000 00 Interest Received on Certificates of Deposit 22 470 79 3 170 23 5 116 15 Transfers From the Construction Fund 1 206 877 24 3 850 66 TOTAL CASH RECEIPTS 2 009 213 97 535 478 94 262 091 78 CASH DISBURSEMENTS Bond Coupon Interest 157 500 00 53 250 00 37 500 00 District Organizational Expense 5 94 4 13 Purchase of Certificates of Deposit 561 615 94 502 824 34 200 530 21 Redemption of Bond Principal , Note 7 1 280 000 00 Accrued Interest on Redemption of Bonds 12 800 00 TOTAL CASH DISBURSEMENTS 2 011 921 88 556 074 34 238 034 34 NET RECEIPTS (DISBURSEMENTS) ( 2 707 91 ) ( 20 595 40) 24 057 44 BEGINNING CASH BALANCE 3 462 04 24 057 44 -o- ENDING CASH BALANCE 754 13 3 462 04 24 057 44 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule D-1 BONDED DEBT AND DEBT SERVICE CLEAR WOODS IMPROVEMENT APRIL 30, 1970 Debt Service Requirements it Ending Year Ending Interest 1 30, 1971 April 30, 1972 Rate Payable A j Interest Principal Interest Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967 5% 2/1 ; 8/1 7 37 500 00 -o- 37 500 00 Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967-A 6% 2/1 ; 8/1 2 C 43 200 00 -o- 43 200 00 Totals, Note 7 2 ; 80 700 00 -o- 80 700 00 The NOTES TO FINANCIAL STATEMENTS are an i Exhibit E CASH TRANSACTIONS, CONSTRUCTION FUND CLEAR WOODS IMPROVEMENT DISTRICT FOR THE YEARS ENDED APRIL 30, 1970, 1969 AND 1968 1970 1969 1968 CASH RECEIPTS From the Sale of Bonds, Note 4 1 558 000 00 719 500 00 Interest Received on Certificates of Deposit 78 977 24 1 500 00 3 850 66 Redemptions of Certificates of Deposit 2 002 107 97 100 000 00 427 343 75 TOTAL CASH RECEIPTS 2 081 085 21 1 659 500 00 1 150 694 41 CASH DISBURSEMENTS Construction of Facilities 198 252 52 185 671 16 585 515 71 District Organizational Expense 13 337 80 28 23o 55 78 342 41 Payments for Operating Fund 4 265 00 3 342 00 2 968 00 Purchase of Certificates of Deposit 659 607 97 1 442 500 00 427 343 75 Transfers to Bond and Interest Fund 1 206 877 24 3 85o 66 TOTAL CASH DISBURSEMENTS 2 082 340 53 1 659 743 71 1 098 020 53 NET RECEIPTS (DISBURSEMENTS) ( 1 255 32) ( 243 71 ) 52 673 88 BEGINNING CASH BALANCE 52 430 17 52 673 88 -o- ENDING CASH BALANCE 51 174 85 52 430 17 52 673 88 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit F SUMMARY OF PERMANENT FACILITIES CLEAR WOODS IMPROVEMENT DISTRICT APR| L 30, 1970 1 . / Drainage System 152 630 55 | Sewer Facilities 401 223 74 Water Facilities %7A 675 03 / ' - Land 29 621 80 | Engineering Costs 143 609 47 Total , Note 6 Source of Funds � Construction Fund Disbursed 969 439 39 Accrued 36 321 20 Total Funds Provided 1 005 760 59 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. - _ -- Exhibit G DISTRICT ORGANIZATIONAL EXPENSE CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1970 Board of Equalization 150 00 Bond Printing Expense 961 00 Bond Premiums for District Officials 269 00 Bond Coupon Interest 136 386 38 Bookkeeping 1 850 00 Creation of District 1 126 56 Directors' Per Diems 5 600 00 Election Expense 401 50 Legal Fees 111 104 00 Legal Notices 1 261 32 Office Supplies 47 45 Total , Note 3 259 157 21 Source of Funds Bond and Interest Fund 253 405 94 Construction Fund 122 660 76 Operating Fund 100 00 Total 376 166 70 Less Interest Earned on Certificates of Deposit, Note 4 117 009 49 Total Funds Provided 259 157 21 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit H Page 1 of 2 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1970 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 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 3: 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. The amount of expense capitalized is based on a percentage of bonds outstanding which are within the three year construction period as compared to the total amount of bonds outstanding. Note 4: 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 5: The following is a comparison of water and sewer service customers for the past three years. April 30, 1968 22 April 30, 1969 101 April 30, 1970 150 Exhibit H Page 2 of 2 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT APRIL 30, 1970 Note 6: As of the balance sheet date, the District did not have insurance coverage on permanent facilities . Note 7: On November 5, 1966, the qualified voters of the District authorized the issuance of construction bonds in the maximum amount of $2,400,000.00. On June 21 , 1967, $750,000.00 of these bonds were issued and sold and are currently outstanding. The District could not sell the remaining bonds in the series at an interest rate of 5% so the voters again met on June 29, 1967, and authorized the issuance of additional construction bonds in the maximum amount of $2,000,000.00 at a maximum interest rate of 6%. The total amount of bonds authorized were issued and sold at various dates . On March 30, 1970, the Board of Directors decided to redeem $1 ,280,000.00 of the 1967-A series bonds due to a slow-down in development of the District. In accordance with the provisions of the bond order, the bonds were repurchased from the respective bondholders leaving $720,000.00 of the 1967-A series currently outstanding. 1