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Home My WebLink About1975 04 30 Single Audit Report - Clear Woods Improvement District p --ooOoo-- AUD IT REPORT CLEAR WOODS IMPROVEMENT DISTRICT HARRIS COUNTY, TEXAS APRIL 30, 1975 --ooOoo-- 1114 --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, ALL FUNDS E GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS F GENERAL FIXED ASSETS G DISTRICT ORGANIZATIONAL COSTS H NOTES TO FINANCIAL STATEMENTS I --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) 224.7758 STEPHEN H.CORDILL.JR. July 30, 1975 JOHN B.MANTHEY MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 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, 1975, 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, subject to the outcome of the lawsuit as discussed in note 12 of the notes to financial statements 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, 1975, 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. ‘12/00e1 /24- C4/7C- 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. Oh Exhibit A COMBINED BALANCE S CLEAR WOODS IMPROVEMENT D I STI APRIL 30. General General Long-Term Fixed Debt Assets ASS E T S Cash Certificates of Deposit, Schedule A-1 Accrued Interest Receivable, Schedule A Accounts Receivable, Water and Sewer Se Taxes Receivable, Schedule C-1 Prepaid Insurance Utility Deposit Due From Other Funds General Fixed Assets, Exhibit G 1 966 718 District Organizational Costs, Exhibit 1 579 775 Amount to be Provided For Retirement of 2 790 000 TOTAL ASSETS 2 790 000 2 546 493 LIABILITIES, RESERVES AND FUND BALANCES Liabilities Unearned Tap Fees Accounts Payable Refundable Customer Deposits Due to Other Funds Bonds Payable, Exhibit F 2 790 000 Total Liabilities 2 790 000 -o- Reserves and Fund Balances Reserve For Authorized Construction Bond Interest, Schedule D-1 Uncollected Taxes Investment in General Fixed Assets 2 546 493 Fund Balances Total Reserves and Fund Balance -o- 2 546 493 TOTAL LIABILITIES, RESERVES AND 2 790 000 2 546 493 The NOTES TO FINANCIAL STATEMENTS are 1 Exhibit D REVENUES, EXPENSES AND FUND BALANCE, DEBT SERVICE FUND CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1975 REVENUES Appropriation From Bond Interest Reserve, Schedule D-1 16 695 Interest Earned on Certificates of Deposit, Note 6 14 733 Transfer From Tax Fund 99 733 Accrued Interest on Bonds Received at Time of Sale 4 032 TOTAL REVENUES 135 193 EXPENSES Bond Interest 134 165 Bond Principal 30 000 TOTAL EXPENSES 164 165 NET EXPENSES ( 28 972) FUND BALANCE, MAY 1 , 1974 124 468 FUND BALANCE, APRIL 30, 1975 95 496 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. de Schedule D-1 BOND INTEREST RESERVE CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1975 Bond Interest Reserve, May 1 , 1974 6 212 Additions: Two Years Interest During Construction Period, Note 4 $780,000 Series 1974 116 120 Deductions: Appropriation For Bond Coupon Interest, Note 4 $600,000 Series 1972 6 212 $780,000 Series 1974 10 483 ( 16 695) Bond Interest Reserve, April 30, 1975 105 637 Bond Interest Reserve: $600,000 Series 1972 -o- $780,000 Series 1974 105 637 Total Bond Interest Reserve 105 637 fik The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. 41011 Exhibit E RECEIPTS AND DISBURSEMENTS, ALL FUNDS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS FOR THE YEAR ENDED APRIL 30, 1975 Debt Operating Tax Service Construction RECEIPTS Fund Fund Fund Fund Operating Income 51 435 Water Tap Income 18 315 Penalty and Interest 1 940 Taxes Collected 98 197 Proceeds of Bond Sale 116 120 640 480 Redemption of Certificates of Deposit 141 716 235 000 Interest Received on Certificates of Deposit 5 552 7 224 Interest Income From Construction Fund 5 438 Reimbursable Transfers From Other Funds 20 000 Accrued Interest Received on Bonds at Time of Sale 4 032 Transfers From Tax Fund 99 733 Customer Deposits 2 535 Unearned Revenue 1 750 TOTAL RECEIPTS 74 035 100 137 392 591 882 704 DISBURSEMENTS Operating Expenses 44 328 3 452 Bond Coupon Interest 134 165 Bond Principal 30 000 Construction of Fixed Assets 354 529 Payment of Prior Year Accounts Payable 868 46 196 District Organizational Costs, Note 5 39 264 Purchase of Certificates of Deposits 227 744 401 787 Transfer of Interest Income to Debt Service Fund 5 438 Reimbursable Payments for Other Funds 9 356 22 419 Tap Construction Expense 9 745 Transfer to Debt Service Fund 99 733 Prepaid Insurance Expenses 1 174 Other 264 TOTAL DISBURSEMENTS 65 735 103 185 391 909 869 633 EXCESS OF RECEIPTS OVER (UNDER) DISBURSEMENTS 8 300 ( 3 048) 682 13 071 CASH BALANCE, MAY 1 , 1974 7 622 5 970 489 7 487 CASH BALANCE, APRIL 30, 1975 1S 922 2 922 1 171 20 558 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Schedule A-1 CERTIFICATES OF DEPOSIT CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1975 Accrued Interest Interest Maturity Face Receivable Rate Date Amount April 30, 1975 Debt Service Fund Certificates of Deposit: No. 48-128-595-6 7.750% 7/17/75 11 567 156 No. 48-128-675-6 7.750% 7/17/75 4 244 49 No. 959 7. 125% 7/17/75 100 000 1 406 No. 509-1730 6.850% 8/25/75 100 000 357 Totals 215 811 1 968 14 Construction Fund Certificates of Deposit: No. 1122 6.750% 5/26/75 101 787 75 No. 1713 6.000% 5/1/75 65 000 321 Totals 166 787 396 41 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, 1975 OPERATING REVENUES Water Service, Note 7 39 535 Sewer Service, Note 7 11 928 Penalty Charges 500 Sewer Inspections 795 Miscellaneous Income 409 TOTAL OPERATING REVENUES 53 t67 OPERATING EXPENSES Monthly Services 19 850 Utilities 7 789 Professional Services 4 270 Repairs and Maintenance 11 884 Chemicals 601 Paying Agents ' Fees 343 Directors ' Per Diems 2 225 Directors ' Bond Premium 102 Insurance Expense 936 Office Supplies and Expense 1 273 Interest Expense 24 Laboratory Expense 2 025 Election Expense 902 Other 40 Sewer Inspection Expense 520 TOTAL OPERATING EXPENSES 52 784 NET OPERATING REVENUES 383 NON-OPERATING ITEMS Water Tap Fees 18 315 Water Tap Expense (10 995) 7 320, NET REVENUES, Note 3 7 703 FUND BALANCE, MAY 1 , 1974 8 252 FUND BALANCE, APRIL 30, 1975 15 955 f 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, 1975 REV ENUES Taxes Collected 98 197 Penalty and Interest 1 940 TOTAL REVENUES 100 137 EXPENSES Tax Assessor-Collector Fees 3 140 Board of Equalization 275 Publication of Legal Notices 12 P Other 25 TOTAL EXPENSES 3 452 NET REVENUE, Note 3 96 685 FUND BALANCE, MAY 1 , 1974 5 970 Transfers to Debt Service Fund ( 99 733) FUND BALANCE, APRIL 30, 1975 2 922 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. 01 le Schedule C-1 TAXES RECEIVABLE CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1975 Taxes Receivable, May 1 , 1974 9 691 Adjustments and Corrections 3 185 1974 Original Tax Roll 96 644 Total to be Accounted For 109 520 Tax Collections: Current Year 91 613 Prior Years 6 584 98 197 Taxes Receivable, April 30, 1975 11 323 Taxes Receivable by Years 1969 359 1970 522 1971 914 1972 1 175 1973 3 322 1974 5 031 Total Taxes Receivable 11 323 Property Valuations 1974 1973 1972 1971 Land 5 116 800 3 397 700 2 901 068 2 961 687 Improvements 10 633 400 8 541 500 6 014 835 5 469 840 Personal Property 357 200 148 600 -o- -o- Total Valuations 16 107 400 12 087 800 8 915 903 8 431 527 Tax Rate Per $100 Valuation 0.60 0.60 0.50 0.50 The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. 11,11 Exhibit F Page 1 of 2 GENERAL LONG-TERM DEBT AND 1 CLEAR WOODS IMPROVEMENT DISTI APRIL 30 Debt Service Requirements For The Year Ending For The Year Ending April 30, 1976 April 30, 1977 Description Principal Interest Principal Interest Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967 25 000 35 000 25 000 33 750 Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1967A 5 000 42 600 5 000 42 300 4/111 Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1972 -o- 40 500 5 000 40 500 Clear Woods Improvement District Waterworks and Sewer System Combination Tax and Revenue Bonds, Series 1974 -o- 58 060 -o- 58 060 Totals, Notes 3 and 9 30 000 176 160 35 000 174 610 * Bonds Were Sold at a 97% of Face Value, The NOTES TO FINANCIAL STATEMENTS are Exhibit F Page 2 of 2 GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1975 Principal Interest Interest Total For The Year Due Due Due Annual Ending April 30, Annually Semiannually Semiannually Requirements 1976 30 000 88 080 88 080 206 160 1977 35 000 87 305 87 305 209 610 1978 65 000 86 361 86 361 237 722 1979 65 000 84 642 84 643 234 285 1980 75 000 82 924 82 924 240 848 1981 80 000 80 868 80 867 241 735 1982 80 000 78 643 78 642 237 285 1983 105 000 76 417 76 418 257 835 1984 105 000 73 568 73 567 252 135 1985 120 000 70 717 70 718 261 435 1986 120 000 67 361 67 361 254 722 1987 125 000 64 005 64 005 253 010 I, 1988 150 000 60 480 60 480 270 960 1989 125 000 55 895 55 895 236 790 1990 125 000 51 920 51 920 228 840 1991 135 000 47 930 47 930 230 860 1992 160 000 43 580 43 580 247 160 1993 160 000 38 458 38 457 236 915 1994 170 000 33 320 33 320 236 640 1995 80 000 27 787 27 788 135 575 1996 80 000 24 898 24 897 129 795 1997 80 000 22 007 22 008 124 015 1998 80 000 19 118 19 117 118 235 1999 90 000 16 227 16 228 122 455 2000 100 000 13 000 13 000 126 000 2001 100 000 9 388 9 387 118 775 2002 50 000 5 775 5 775 61 550 2003 50 000 3 850 3 850 57 700 2004 50 000 1 925 1 925 53 850 TOTALS 2 790 000 1 416 449 1 416 448 5 622 897 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, 1975 Balances Balances May 1 , 1974 Additions April 30, 1975 Land 29 622 29 622 Drainage System 451 811 166 234 618 045 Sewer System 539 524 117 530 657 054 Water System 342 437 92 325 434 762 Engineering 143 609 83 626 227 235 Totals, Note 8 1 507 003 459 715 1 966 718 Additions Provided By Construction Fund Disbursed 354 529 Accrued 95 830 450 359 Reimbursable Payment By Operating Fund 9 356 Total Additions Provided 459 715 �, 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, 1975 Balances Balances May 1 , 1974 Additions April 30, 1975 Board of Equalization 150 150 Bond Printing 1 286 1 286 Bond Premiums For Officials 269 269 Bond Coupon Interest, Note 4 325 753 16 695 342 448 Discount on Bonds 30 000 23 400 53 400 Bookkeeping 1 850 1 850 Creation of District 1 151 4 1 155 Directors' Per Diems 5 600 5 600 Elections 559 559 Legal Fees 131 794 23 010 154 804 Legal Notices 1 911 1 911 Office Supplies 93 93 Financial Advisory Fees -o- 16 250 16 250 Totals, Note 5 500 416 79 359 579 775 Additions Provided By Debt Service Fund 16 695 Construction Fund 39 264 Discount on Sale of Bonds, General Long-Term Debt Fund 23 400 Total Additions Provided 79 359 0' The NOTES TO FINANCIAL STATEMENTS are an integral part of this report. Exhibit I Page 1 of 3 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1975 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. Note 6: Interest Earned on Investments The District has adopted the policy of transferring interest earned on fl investments of the construction fund permanently to the debt service fund. The construction fund earned $7,619 during the current year. Exhibit I Page 2 of 3 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1975 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 Note 8: Insurance Policies in Force • Property Damage Carrier: National Surety Insurance Co. Policy Number: F-798-30-15 Term: June 14, 1974 - June 14, 1977 Amount: $142,900 Type of Coverage: Windstorm Hurricane, Fire and Lightning, Extended Coverage, Vandalism, and Malicious Mischief Comprehensive General Liability (Except Automobile) Carrier: National Surety Insurance Co. Policy Number: LC-238-74-36 Term: June 22, 1974 - June 22, 1975 Amount: BI $300,000 Property Damage $50,000/100,000 Type of Coverage: Waterworks, Business Liability Flood Carrier: Federal Flood Insurance Co. Policy Number: 427-406 Term: July 14, 1974 - July 14, 1975 Amount: Sewer Plant $4,500 Motors and Blowers $15,000 p Exhibit I Page 3 of 3 NOTES TO FINANCIAL STATEMENTS CLEAR WOODS IMPROVEMENT DISTRICT--HARRIS COUNTY, TEXAS APRIL 30, 1975 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, 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. 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, 1975 613 April 30, 1974 504 IP 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 1 , 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 the report had not been made. Note 12: Subsequent Litigation Subsequent to April 30, 1975 the district was named as a party 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. 44