HomeMy WebLinkAbout1982 04 30 Other - Clear woods Improvement District questionare r .
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CLEARWOODS IMPROVEMENT DISTRICT
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a COMPLETED QUESTIONNAIRE REQUIRED BY
TEXAS WATER RIGHTS COMMISSION
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YEAR ENDED APRIL 30, 1982
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CERTIFIED PUBLIC ACCOC\T.4\TS
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TABLE OF CONTENTS
41 Page
Auditors' Letter 1
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Completed Questionnaire Required by
Texas Water Rights Commission 2-5
Certificate of Board of Directors 6
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CERTIFIED VUBUC ACCUUNLANT5
3730 F.M. 1960 West,Suite 300
Houston, Texas 77068
RICHARD W.BREEDLOVE (713)440-3347
DONN A.LAND
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41 July 15, 1982
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Board of Directors
Clearwoods Improvement District
Harris County, Texas
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/14 The enclosed completed questionnaire required by the Texas Water Rights
Commission was completed in connection with our audit of Clearwoods
Improvement District financial statements for the year ended April
41 30, 1982.
The audit report filed under separate cover was reviewed and approved
in accordance with the enclosed Certificate of the Board of Directors
MR on , 1982.
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QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
1! FOR THE YEAR ENDED APRIL 30, 1982
11 Clearwoods Improvement District Harris
Name of Water District County
1! 1. At the time that you were engaged by the Board of Directors of the
above named water district to perform this audit, was a copy of the
Water District Accounting Manual made available to you? X
Yes No
2. The Water District Accounting Manual prescribes accounting prin-
ciples and policies. After taking these into consideration, did
the local water district:
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a. Maintain a proper classification of expenses and revenues? X
Yes No
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b. Record expenses and revenues on the basis of full accrual
accounting except for the specific revenue and expense items
required to be maintained on the cash basis by the Water
District Accounting Manual? X
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Yes No
RI c. Maintain the double-entry system of accounting? X
Yes No
d. Keep a general ledger in accordance with the uniform
classification of general ledger accounts prescribed in
the Water District Accounting Manual? X
Yes No
e. Adhere to other provisions of the Water District Accounting
Manual? X
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Yes No
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3. Did the Board of Directors of the water district impose on you
RR any audit requirements in addition to those minimum audit re-
quirements of the Water District Accounting Manual? X
Yes No
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4. Did you identify, during the course of your examination of
the financial statements of the water district, any areas
pertaining to accounting matters in which action should be
taken by the Board of Directors of the water district? X
4 Yes No
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5. Did you obtain representation from the Board of Directors
of the water district that all records of the water district
4110 were made available to you for your examination? X
Yes No
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6. Did the water district:
a. Use the construction fund, tax fund and debt service fund
only for purposes authorized by the Board of Directors of
the water district and/or within the provisions of appli-
cable bond resolutions? X
Yes No
b. Do business only with firms of corporations in which
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members of the Board of Directors had no pecuniary
411 interest? X
Ai Yes No
c. Observe the conditions for obtaining grants, gifts,
etc. , or observe agreements with governmental agencies
111 for the purpose of securing funds or services? X
Yes No
d. Have a contract for Social Security coverage for its
employees with the Texas Department of Public Welfare,
Social Security Division? X*
Yes No
IP e. Make remittances of Social Security taxes according to
the terms of the contract for Social Security coverage
with the Social Security Division of the Texas Department
of Public Welfare? X*
Yes No
f. Deposit receipts to the proper funds kept by the ap-
proved depository bank? X
Yes No
''- g. Draw checks only on funds approved by the Board of
Directors and signed by authorized personnel? X
4111 Yes No
7. Do you issue a management letter to administrative officials
of the water district at least annually which sets forth
411 your comments (based on matters which came to your attention
during your examination) for strengthening internal account-
ing controls and improving administrative efficiency and
RI procedures? X
Yes No
Has a copy of the management letter been filed with the
40 Texas Water Rights Commission? X**
Yes No
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*The District has no paid employees.
40 **No major internal control weaknesses were noted
during the April 30, 1982 examination of
Clearwoods Improvement District financial
111 statements for the period then ended. All items
of significance were discussed with members of
the Board.
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8. The Texas Water Code makes specific provisions relating to
security provided by depository banks. After consideration
of the applicable laws pertaining to the specific water
district, did the depository bank provide adequate security
of the correct type? X
Yes No
9. The water district's taxes were collected by (check one) :
a. An employee of the district / /
b. The county tax assessor-collector /
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c. A city or other tax assessor-collector / X /
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d. More than one of the above / /
10. Was the tax assessor-collector bonded as required by law? X
Yes No
11. What was:
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a. The Tax-assessor-collector bonded for? $ 5 000
b. The greatest amount of the district's taxes in the tax
assessor-collector's possession at any one time? $ 72 972 _
c. The frequency of tax receipts deposits with the bonded
141 depository?
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(1) Daily (December & January) / X /
(2) Weekly (Balance of Year) / X /
(3) Monthly
d. The percent of the assessed valuation to fair market
value? 100.0 %
12. We (check one) :
w a. Actually examined the records of the tax assessor-
collector. / X /
b. Received written confirmation for tax data from the / /
RR tax assessor-collector.
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c. Accepted tax data furnished by the district's
4111 office. / /
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13. As a result, were local tax revenues (including delinquent
taxes and interest and penalties on taxes) properly separated
for debt service? X
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Yes No
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14. Was the water district in compliance with applicable bond
resolutions, with the general or special legislation under
which the district was created and with specific statutes
excerpted and included in the Legal Compliance Guidelines
in Section 70-03-1 of the Water District Accounting Manual?
(Attach a continuation page if necessary.) X*
Yes No
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*The District's bond resolutions require a complete
engineering inspection report annually. A complete
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inspection report has not been made, however,
specific engineering reports are made and the
Engineer is consulted for all additions and ex_pan-
4, sions.
The Bond Orders state that the District is to transfer
411 on a monthly basis to the Debt Service Fund, commencing
when any part of the water and sewer system is placed
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in operation, 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
4 of principal. In addition, a sum equal to 20% of such
monthly payments is to be paid to the Debt Service Fund
41 until the fund balance is equal to the total principal
4 and interest requirements for the current year and the
next succeeding year. At the Balance Sheet date, the
40 Operating and Debt Service Fund Revenues have not been
sufficient to make payments required by the Bond Order.
However, the ad valorem tax levied by the District and
the restricted cash and temporary investments have been
sufficient to meet the annual bond principal and interest
payments, not provided by funds from the bond sales.
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CERTIFICATE OF THE BOARD OF DIRECTORS
1111 CLEARWOODS IMPROVEMENT DISTRICT Harris
Name of Water District County
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We, the undersigned, do hereby certify that the audit report of the above
named Water District for the fiscal year end ptespril 30, 1982, and
received by the Board of Directors on the day of , 1982, and
was reviewed and / ap roved / / 'sap roved at a meeting o the Board
of Directors on the 9day of , 1982.
natur o oard Secret ignature of Boar VPt sident
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(If the audit report was disapproved, as checked above, the reasons
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therefore must be listed below or on an attachment hereto.)
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SMITH f MURDAUGH
W. JAMES MURDAUGH, JR. ATTORNEYS AT LAW
CYRIL J. SMITH
1811 HOUSTON NATURAL GAS BUILDING OF COUNSEL
HERMAN I. LITTLE, JR.
CLAY E. CRAWFORD 1200 TRAVIS STREET
HOUSTON. TEXAS 77002
JAMES D. BONHAM
ERIK POAG LITTLEJOHN 713/858-8315
September 13 , 1982
Ms. Bobbie Henry
City Secretary
City of Friendswood
109 Willowick
City Hall
Friendswood, TX 77546
Re: Clearwoods Improvement District
Dear Ms. Henry:
Pursuant to the requirements of Section 50. 374 (c) ,
Texas Water Code, I am enclosing for your files the most recent
audit of the captioned district ' s fiscal accounts .
Very truly yours ,
W. James Murdaugh, Jr.
Attorney for the District
WJM/slh
Enclosure