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Home My WebLink About1976 04 30 Single Audit Report - Clear woods Improvement District Alum --ooOoo-- AUDIT REPORT CLEAR WOODS IMPROVEMENT DISTRICT 4011.1k' HARRIS COUNTY, TEXAS -o- APRIL 30, 1976 --ooOoo-- mumm4 --ooOoo-- C O N T E N T S Exhibit Schedule ACCOUNTANTS' REPORT BALANCE SHEET, ALL FUNDS A STATEMENT OF REVENUES, EXPENSES AND FUND BALANCE, ALL FUNDS B STATEMENT OF CHANGES IN CASH, ALL FUNDS C ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT D * GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS, BY YEARS E NOTES TO FINANCIAL STATEMENTS F SCHEDULE OF TEMPORARY INVESTMENTS 1 ANALYSIS OF CHANGES IN TAXES RECEIVABLE 2 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS 3 ANALYSIS OF CHANGES IN DISTRICT ORGANIZATIONAL COSTS 4 INSURANCE COVERAGE 5 --ooOoo-- WHITE, PETROV & MCHONE CERTIFIED PUBLIC ACCOUNTANTS ROBERT A.WHITE 600 JEFFERSON SUITE 1150 JOSEPH W.PETROV HOUSTON,TEXAS 77002 ROBERT W.MCHONE TELEPHONE (713) 659-1777 STEPHEN H.CORDILL,JR. August 19, 1976 JOHN B.MANTHEY MEMBERS AMERICAN INSTITUTE OF 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, 1976, and the related statements of revenues, expenses and fund balances, all funds, and changes in cash, all funds, for the year then ended. The analysis of changes in general long-term debt and general long-term debt service requirements by years were also included in this examination. 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. 4 In our opinion, to the p subjectpending litigation as described more fully in note 10 of the notes to financial statements, the state ments referred to above present fairly the financial position of CLEAR WOODS IMPROVEMENT DISTRICT at April 30, 1976, and the results of its operations and the changes in its cash position for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year, except for the changes described in note 8 of the notes to financial statements. We concur with these changes. The accompanying supplemental information (schedules 1 through 5) is not necessary for a fair presentation of these financial statements, but is presented as additional analytical data. This information 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 all material respects in relation to the financial statements taken as a whole. r a10,4 46. 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 A CLEAR WOODS |MPR[ BALANCE SHEE] ApR|L 3[ Debt General ASSETS AND O Service Tax Operating Fund Fund Fund Current Assets Cash Unrestricted Cash 26 041 Restricted Cash" Note 5 ) 394 S 317 Total Cash ) 294 5 317 26 041 Temporary Investments Restricted Temporary Investments, Nol 157 075 Total Cash and Temporary Invesi 158 369 5 317 26 041 Accounts Receivable and Accrued Revenuw l 625 ll 975 Prepaid Expanses 9 350 Prepaid Insurance 671 Total Current Assets 159 994 5 317 Taxes Receivable -o- 11 OQY -o- ' at Cost), � General Fixed Assets -o- -o- -0- intangl6/a and Other Assets Dystrict Organizational Costs Bond Discount, Less Amortization of $7. 45 888 Total Intangible and Other Ass( _ 45 888 -o- -o- Prmvls|on for Bonded Debt 35 ODO -o- -o- - TOTAL ASSETS AND OTHER DEBITS 240 882 16 398 48 037 LIABILITIES AND Current Liabilities Accounts Payable and Accrued Expenses 9 172 Bonded Debt Payable, Current Maturity, 35 OOO Refundable Deposits 8 205 Overpayments Due to Taxpayers 215 Total Current Liabilities 35 OOO 215 17 377 Long-Term Liabilities Bonded Debt Payable, Exhibit D Total Liabilities 35 OOO 215 17 377 Fund Balances Unallocated Fund Balances 112 417 5 102 30 680 Investment in Uncollected Taxes YY 087 Unamort/zcJ Discount on Sale of Bonds 45 888 Allocated from Net System Revenues Allocated from Sale of Bonds Allocated from Sale of Bonds for Au1bo/ Allocated for Bond Interest During Con! 47 577 Total Fund Balances 205 882 16 183 30 660 TOTAL LIABILITIES AND FUND BAL) 240 882 16 398 48 037 ~. � ' The NOTES TO FINANCIAL STATEMENTS ar, Exhibit B CLEAR WOODS IMPI STATEMENT OF REVENUES, EXPENS FOR THE YEAR ENE Debt General ervice Tax Operating Fund Fund Fund Operating Revenues Water Service, Note 6 60 310 Sewer Service, Note 6 24 130 Taxes Collected 138 961 Penalty and Interest 1 580 2 126 Total Operating Revenues -o- 140 541 86 566 Operating Expenses Professional Fees 100 1 991 Contracted Services 4 161 29 050 Utilities 10 345 Repairs and Maintenance 15 737 Recurring Operating Expense 100 11 919 Total Operating Expenses -o- 4 361 69 042 Net Revenues from Operations -o- 136 180 17 524 Non-Operating Revenues (Expenses) Tap Connection Fees 59 770 Interest Earned, Note 4(F) 10 290 Contribution by Environmental Protect Miscellaneous Revenues 28 Tap Connection Expense (43 680) Bond Interest 76 160) Amortization of Bond Discount 2 507) Net Interest Capitalized 38 093 Bond Principal 30 000) Paying Agent Fees 385) Total Non-Operating Revenues 50 669) -o- 16 118 Net Revenues (Expenses) , Note50 669) 136 180 33 642 Additions to Fund Balances Tap Connection Expense Capitalized Transferred from Construction Fund 4 731 4 916 Transferred from Debt Service Fund Transferred from Tax Fund 34 000 Transferred from General Operating Ful6 385 Total Additions to Fund Balan 5 553) 136 180 38 558 Deductions from Fund Balances Decrease in Uncollected Taxes 242 Transferred to General Fixed Asset Fu38 093 Transferred to Debt Service Fund 134 000 16 385 Transferred to General Operating Fund Total Deductions from Fund Ba38 093 134 242 16 385 Net Changes in Fund Balances for the Ye43 646) 1 938 22 173 Fund Balances at May 1 , 1975 )l 133 14 245 15 955 Prior Period Adjustments, Note 8 +8 395 ( 7 468) Adjusted Fund Balances at May 1 , 197549 528 14 245 8 487 Fund Balances at April 30, 1976 )5 882 16 183 30 660 The NOTES TO FINANCIAL STATEMENTS a Exhibit C CLEAR WOODS IMF STATEMENT OF CHANG FOR THE YEAR EN General Tax Operating Fund Fund Sources of Cash Cash Receipts from Operations 140 541 80 133 Cash Disbursements for Operations 4 361 66 851 Net Cash from Operations 136 180 13 282 Cash Received from Non-Operating RevE 58 048 Cash Transfers from Other Funds Inter-Fund Receivables Repaid Overpayments from Taxpayers 364 Customer Deposits 2 235 Total Cash Provided 136 544 73 565 AMMINNEMIF Application of Cash Non-Operating Expenses 40 430 Payment of Payables, Prior Year 6 631 Inter-Fund Payables Repaid Payment for Construction in Progress Cash Transfers to Other Funds 134 000 16 000 Expenses Paid for Other Funds 385 Refund of Taxpayers' Overpayments 149 Total Cash Applied 134 149 63 446 Increase (Decrease) in Cash 2 395 10 119 Cash and Temporary Investment Balances 2 922 15 922 Cash and Temporary Investment Balances 5 317 26 041 The NOTES TO FINANCIAL STATEMENTS a Exhibit D CLEAR WOODS IMF ANALYSIS OF CHANGES || FOR THE YEAR EN| Debt Service Requirements For The Year Ending April 30, 1977 Description Paying Agent Principal Interest Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue lied Bank of Texas Bonds, Series 1967 Houston" Texas 25 OOU 33 750 Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue lied Bank of Texas Bonds, Series 1967A Houston, Texas S OOO 42 300 Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue YTmd Bank of Texas Bonds, 3mrJos 1973 Houston, Texas 5 OOO 40 500 _ Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue lied Bank of Texas Bonds, Series 1974 Houston, Texas 58 060 TOTALS, Note 7 35 OOO 174 610 Bonds Voted 4 130 000 Bonds Approved for Sala 4 130 DOO Bonds Sold 4 130 000 The NOTES TO FINANCIAL STATEMENTS a � ., Exhibit E r CLEAR WOODS IMI GENERAL LONG-TERM DEBT SE APRIL Ser Series 1974 Due During Principal Inipal Interest Due Total Fiscal Years Due September 1 , Annual Ending April 30 February 1 F1n 1 March 1 Total Requirements 1977 25 000 58 060 58 060 209 610 1978 50 000 58 060 58 060 237 722 1979 50 000 58 060 58 060 234 285 1980 5o 000 000 58 060 68 060 24o 848 1981 5o 000 000 57 384 67 384 241 735 1982 5o 000 )00 56 709 66 709 237 285 1983 75 000 )00 56 034 66 034 257 835 1984 75 000 000 55 359 65 359 252 135 1985 75 000 000 54 685 74 685 261 435 1986 75 000 )00 53 334 73 334 254 722 1987 75 000 000 51 985 71 985 253 010 1988 25 000 )00 50 634 80 634 270 960 1989 )00 48 564 78 564 236 790 1990 )oo 46 464 76 464 228 84o -.,,,,,,mmil 1991 )00 44 334 74 334 23o 86o 1992 )00 42 160 72 16o 247 160 1993 )00 39 939 69 939 236 915 1994 )00 37 690 77 690 236 64o 1995 )00 34 65o 74 650 135 575 1996 )00 31 568 71 568 129 795 1997 )00 28 490 68 490 124 oi5 1998 )00 25 410 65 410 118 235 1999 )00 22 329 62 329 122 455 2000 )00 19 250 69 250 126 000 2001 )00 15 400 65 400 118 775 2002 )00 11 55o 61 55o 61 55o 2003 )00 7 700 57 700 57 700 2004 )00 3 850 53 85o 53 850 TOTALS 675 000 )00 1 127 712 1 907 712 5 416 737 Cash and Temporary Investment Balances Debt Service Fund 158 369 Tax Fund 5 317 163 686 ,1 The NOTES TO FINANCIAL STATEMENTS Exhibit F Page 1 of 6 CLEAR WOODS IMPROVEMENT DISTRICT NOTES TO FINANCIAL STATEMENTS APRIL 30, 1976 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: Significant Accounting Policies The exhibits contained in this report were prepared on the accrual basis of accounting except for the statement of changes in cash, all funds, which was prepared on the cash basis. Tax revenues and bond interest expense are reported on the cash basis of accounting. This report was prepared in accordance with the WATER DISTRICT ACCOUNTING MANUAL published by the Texas Water Rights Commission and utilizing fund accounting principles. This Manual was prepared pursuant to Texas State statutes. 11"""lemer The District capitalized all costs associated with the creation of the District. All costs directly associated with the sale of bonds are being capitalized. From the date of the sale of bonds, through the date of the completion of related improvements, interest expense and interest income related to these funds are being capitalized. These amounts have been shown on the balance sheet as district organizational costs. In accordance with the requirements of the Texas Water Rights Commission, these amounts are not being amortized. Bond discounts have been deferred and are being amortized over the life of the applicable bond issue in relation to the principal amount outstand- ing. The District requires water and sewer service customers to pay a refund- able deposit which will be refunded or applied against accounts receivable upon termination of service. These refundable deposits are considered to be an adequate allowance for uncollectible accounts and accordingly no separate allowance has been recorded. The District capitalizes the cost of meters and boxes and residential lines as fixed assets. The District does not maintain detailed fixed asset records, and thus detailed cost information on individual assets is not readily available. In accordance with the requirements of the Texas Water Rights Commission, fixed assets are not being depreciated. Accordingly, replacements of fixed assets and repairs are not capitalized. Exhibit F Page 2 of 6 CLEAR WOODS IMPROVEMENT DISTRICT NOTES TO FINANCIAL STATEMENTS APRIL 30, 1976 Note 3: Pledge of 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 Order and Legal Requirements A. The Bond Orders state that the moneys in the debt service fund (also includes tax fund) shall be used solely for the purpose of paying the interest on and principal of the bonds until all the bonds, both principal and interest, have been fully paid. ■■�.� B. The Bond Orders state that so long as any of the bonds are outstand- ing, the District agrees to maintain insurance on the system for the benefit of the holder or holders of the bonds, of a kind and in an amount which usually would be carried by private companies engaged in a similar type of business. The District has physical damage coverage of $142,900 with an 80% coinsurance provision and flood coverage of $19,500. The District has liability coverage with maximum limits of $300,000. Since no objective criteria have been established for insurance coverage as required by this bond order provision, a determination could not be made whether or not the District had complied with the requirement. C. In accordance with the Bond Orders, a portion of the bond proceeds was deposited into the debt service fund and reserved for the pay- ment of bond interest during the construction period. This bond interest reserve is reduced as the interest is paid. Transactions for the current year are summarized as follows: Bond Interest Reserve May 1 , 1975 105 637 Deduct Appropriation for Bond Interest Paid on $780,000 Series 1974 58 060 Bond Interest Reserve April 30, 1976 47 577 01/11 Exhibit F Page 3 of 6 CLEAR WOODS IMPROVEMENT DISTRICT NOTES TO FINANCIAL STATEMENTS APRIL 30, 1976 Note 4: Bond Order and Legal Requirements (Continued) D. The Bond Orders state 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. E. The Bond Orders state that the District is to transfer on a monthly basis to the debt service fund an amount not less than one-sixth of the next maturing installment of interest and an amount not less than one-twelfth of the next maturing installment of principal . In addition, a sum equal to 20% of such monthly payments is to be paid to the debt service fund until the fund balance is equal to the total principal and interest requirements for the current year and the next succeeding year. At April 30, 1976, the cumulative require- ment of these provisions was $211 ,041 . The combined cash balances of the debt service fund and the tax fund at April 30, 1976 amounted '*..m,mor to $163,686. F. In accordance with the Texas Water Rights Commission Accounting Manual , interest earned on investments in the construction fund should be transferred to the debt service fund. Interest of $6,750 was received this year by the construction fund but only $3,914 was transferred to the debt service fund. G. In accordance with State statutes, the District should require that security (on a par value basis) be provided by depositories for all funds held by them. At the balance sheet date, the par value of securities and Federal insurance was in excess of the District' s deposits. No determination was made of the market value of pledged securities. Note 5: Restricted Cash and Temporary Investments The following balances are restricted by the Bond Orders as described below: Restricted for Construction of Fixed Assets Cash 175 Temporary Investments 70 822 Restricted for the payment of bonded debt, principal and interest, only Cash 6 611 Temporary Investments 157 075 4114 Total Restricted Cash and Temporary Investments 234 683 Exhibit F Page 4 of 6 CLEAR WOODS IMPROVEMENT DISTRICT NOTES TO FINANCIAL STATEMENTS APRIL 30, 1976 Note 6: Water and Sewer Service Rates and Customers The District has established the following monthly water and sewer service rates effective December 1 , 1975: Water Service Residential : First 8,000 Gallons of Water Used (Minimum Bill) $7.00 Each 1 ,000 Gallons of Water Used Thereafter .65 Sewer Service Residential : First 50,000 Gallons of Water Used (Minimum Bill) $4.00 Each 1 ,000 Gallons of Water Used Thereafter .25 Water and Sewer Customers The following is a comparison of the number of metered water and sewer service customers serviced by the District: April 30, 1976 870 April 30, 1975 613 April 30, 1974 504 April 30, 1973 3 April 30, 1972 310 April 30, 1971 230 April 30, 1970 150 April 30, 1969 101 April 30, 1968 22 Note 7: 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, 1972 and 1974 may be called on August 1 , 1982, February 1 , 1982, April 1 , 1987 and September 1 , 1989, respectively, or any interest date thereafter. 1011.. ►. Exhibit F Page 5 of 6 CLEAR WOODS IMPROVEMENT DISTRICT NOTES TO FINANCIAL STATEMENTS APRIL 30, 1976 Note 8: Accounting Changes In order to comply with the requirements of the Texas Water Rights Commission, the following accounting policies were changed. A. General Fixed Asset Fund Pre-operating costs expensed 8 521 Reduction of capitalized interest on construction 139 195 Interest earned on investments during construction 129 524 Transfer of discount on sale of bonds to debt service fund 53 400 Capitalization of residential lines ( 38 515) Construction in progress 406 272 Reduction in Fund Balance 698 397 '%"/Exen. B. Debt Service Fund Transfer of discount on the sale of bonds from the general fixed asset fund 53 400 Amortization of bond discount initiated ( 5 005) Increase in Fund Balance 48 395 C. Construction Fund Adjustment of prior year interfund payables 7 468 Construction in progress 406 272 Increase in Fund Balance 413 740 D. General Operating Fund Adjustment of prior year interfund receivable 7 468 Note 9: Equipment Lease Agreement The District is leasing a temporary aerobic sewage treatment plant for use at the District' s sewage treatment plant site. The lease is for a term of one year commencing February 1 , 1976 at a monthly rental of $900. The lease may be extended for additional six month terms at the option of the District. This lease has not been capitalized in the financial statements. f4 Exhibit F Page 6 of 6 CLEAR WOODS IMPROVEMENT DISTRICT NOTES TO FINANCIAL STATEMENTS APRIL 30, 1976 Note 10: Pending Litigation The District was named as a defendant in a law suit which alleged damages to the plaintiff' s property in the amount of $600,000 due to alleged infractions concerning water control in the stream known as Clear Creek. This law suit is pending as of the date of this report and the outcome is uncertain. Schedule 1 CLEAR WOODS IMPROVEMENT DISTRICT SCHEDULE OF TEMPORARY INVESTMENTS APRIL 30, 1976 Accrued Interest Interest Maturity Face Receivable Rate Date Amount April 30, 1976 Construction Fund Certificates of Deposit No. 2412 5. 75% 6/29/76 64 452 305 No. 2346 6.25% 6/01/76 6 370 63 Totals, Construction Fund 70 822 368 Debt Service Fund Certificates of Deposit No. 2256 6.00% 7/24/76 16 075 249 No. 2350 6.25% 7/20/76 141 000 1 376 Totals, Debt Service Fund 157 075 1 625 TOTALS, ALL FUNDS 227 897 1 993 P The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. 1 Schedule 2 CLEAR WOODS IMPROVEMENT DISTRICT ANALYSIS OF CHANGES IN TAXES RECEIVABLE FOR THE YEAR ENDED APRIL 30, 1976 Taxes Receivable, May 1 , 1975 11 323 1975 Original Tax Roll 138 719 Total to be Accounted For 150 042 Tax Collections: Current Year 133 214 Prior Years 5 747 138 961 Taxes Receivable, April 30, 1976 11 081 Taxes Receivable by Years 1969 359 1970 401 "*04"1`1*.r 1971 522 1972 425 1973 1 844 1974 2 025 1975 5 505 Total Taxes Receivable 11 081 Property Valuations 1975 1974 1973 1972 Land 5 939 100 5 116 800 3 397 700 2 901 068 Improvements 14 962 600 10 633 400 8 541 500 6 014 835 Personal Property 439 700 357 200 148 600 Total Valuations 21 341 400 16 107 400 12 087 800 8 915 903 Tax Rate Per $100 Valuation 0.65 0.60 0.60 0.50 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule 3 CLEAR WOODS IMPROVEMENT DISTRICT ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS FOR THE YEAR ENDED APRIL 30, 1976 Balances As Originally Adjusted Reported Accounting Balances Balances May 1 , Changes, May 1 , April 30, 1975 Note 8 1975 Additions 1976 Land 29 622 29 622 29 622 Water System 434 762 ( 44 417) 390 345 228 995 619 340 Sewage System 657 054 (139 432) 517 622 129 362 646 984 Drainage System 618 045 (142 665) 475 380 132 949 608 329 Engineering Fees 227 235 ( 41 243) 185 992 57 284 243 276 Totals, Schedule 5 1 966 718 (367 757) 1 598 961 548 590 2 147 551 ",ftimma+ Amounts Provided By: Construction Fund, Bond Sales 1 966 718 (406 272) 1 560 446 504 910 2 065 356 General Operating Fund, Net System Revenues 38 515 38 515 43 680 82 195 Total Amounts Provided 1 966 718 (367 757) 1 598 961 548 590 2 147 551 1 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. fsh, Schedule 4 CLEAR WOODS IMPROVEMENT DISTRICT ANALYSIS OF CHANGES IN DISTRICT ORGANIZATIONAL COSTS FOR THE YEAR ENDED APRIL 30, 1976 Balances As Originally Adjusted Reported Accounting Balances Balances May 1 , Changes, May 1 , April 30, 1975 Note 8 1975 Additions 1976 Legal Fees 154 804 154 804 154 804 Bond Interest 342 448 (140 644) 201 804 43 545 245 349 Amortized Bond Discount 1 449 1 449 849 2 298 Fiscal Agent Fees 16 250 16 250 16 250 Bond Issue Expenses 1 286 1 286 1 286 Other Costs 11 587 ( 8 521) 3 066 3 066 Interest on Temporary Investments (129 524) (129 524) ( 6 301) (135 825) Discount on Sale of Bonds 53 400 ( 53 400) ,,,"_r Totals 579 775 (330 640) 249 135 38 093 287 228 Amounts Provided By: General Long-Term Debt, Discount on Sale of Bonds 53 400 ( 53 400) Construction Fund, Bond Sales 183 927 ( 8 521) 175 406 175 406 Debt Service Fund, Bond Sales 342 448 (268 719) 73 729 38 093 111 822 Total Amounts Provided 579 775 (330 640) 249 135 38 093 287 228. The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule 5 CLEAR WOODS IMI INSURAN( APRIL The Bond Orders state that so long es < District agrees to maintain insurance c holder or holders of the bonds, of a k be carried by private companies engage( no objective criteria have been establ by this bond order provision, a determ the District had complied with the regt e r Type of Policy Corporation Clause Type of Coverage Stock/Mutual Co-Insurance Employee Honesty, Etc. : R.,ausaar Tax Assessor and Collector Maryland Stock No Public Official Maryland Stock No Fire, Lightning, Extended Coverage, Vat and Malicious Mischief: Water Plants and Sewage Treatment I Stock 80% Flood Insurance: Stock None Sewer Pump Building Equipment Comprehensive General Liability and Contractual Liability: Stock None Bodily Injury, Aggregate Property Damage, Per Occurrence Property Damage, Aggregate 01111. The NOTES TO FINANCIAL STATEMENTS