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HomeMy WebLinkAbout1981 04 30 Other - Clearwoods Improvement District I I I I ICLEARWOODS IMPROVEMENT DISTRICT I COMPLETED QUESTIONNAIRE REQUIRED BY TEXAS WATER RIGHTS COMMISSION YEAR ENDED APRIL 30, 1981 I I I I I I I I 1 BREEDLOVE & CO. CERTIFIED PUBLIC ACCOUNTANTS I 11 11 11 ll TABLE OF CONTENTS 11 Page 11 Auditors' Letter 1 11 Completed Questionnaire Required by Texas Water Rights Commission 2-5 11 Certificate of Board of Directors 6 11 11 11 11 BREEDLOVE & CO. 3730 g...& 7960 �eaG, Mae 300 I CERTIFIED PUBLIC ACCOUNTANTS .�eaaae.77068 (719)i o-39.47 RICHARD W.BREEDLOVE DONN A.LAND il 11 July 30 , 1981 11 Board of Directors Clearwoods Improvement District Harris County, Texas 11 The enclosed completed questionnaire required by the Texas Water Rights Commission was completed in connection with our audit of 11 Clearwoods Improvement District financial statements for the year ended April 30, 1981. 11 The audit report filed under separate cover was reviewed and approved in accordance with the.enclosed Certificate of the Board of Directors on , 1981. 1 II QUESTIONNAIRE TO BE COMPLETED BY AUDITOR IIFOR THE YEAR ENDED APRIL 30, 1981. 1 CLEARWOODS IMPROVEMENT DISTRICT HARRIS Name of Water District County II1. 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 Disrtict Accounting Manual made available to you? X II Yes No 2. The Water District Accounting Manual prescribes accounting prin- ciples and policies. After taking these into consideration, did IIthe local water district: a. Maintain a proper classification of expenses and revenues? X II Yes No b. Record expenses and revenues on the basis of full accrual accounting except for the specific revenue and expense items II required to be maintained on the cash basis by the Water District Accounting Manual? X Yes No 11 c. Maintain the double-entry system of accounting? X Yes No II d. Keep a general ledger in accordance with the uniform classification of general ledger accounts prescribed in the Water District Accounting Manual? X II Yes No e. Adhere to other provisions of the Water District Accounting Manual?I X Yes No I 3. Did the Board of Directors of the water district impose on you any audit requirements in addition to those minimum audit re- quirements of the Water District Accounting Manual? X Yes No 11 4. Did you identify, during the course of your examination of the financial statements of the water district, any areas 11 pertaining to accounting matters in which action should be taken by the Board of Directors of the water district? X Yes No 11 5. Did you obtain representation from the Board of Directors of the water district that all records of the water district 11 were made available to you for your examination? X Yes No 1 II6. Did the water district: II 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 II Yes No b. Do business only with firms of corporations in which members of the Board of Directors had no pecuniary II interest? X Yes No c. Observe the conditions for obtaining grants, gifts, II etc. , or observe agreements with governmental agencies for the purpose of securing funds or services? X Yes No d. Have a contract for Social Security coverage for its 11 employees with the Texas Department of Public Welfare, Social Security Division? X* Yes No 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 11 of Public Welfare? X* Yes No f. Deposit receipts to the proper funds kept by the ap- proved depository bank? X II Yes No g. Draw checks only on funds approved by the Board of Directors and signed by authorized personnel? X Yes No II 7. Do you issue a management letter to administrative officials of the water district at least annually which sets forth 11 your comments (based on matters which came to your attention during your examination) for strengthening internal account- ing controls and improving administrative efficiency and II procedures? X Yes No Has a copy of the management letter been filed with the 11 Texas Water Rights Commission? X** Yes No *The District has no paid employees. II **No major internal control weaknesses were noted during the April 30, 1981 examination of Clearwoods Improvement District financial statements for the 11 period then ended. All items of significance were discussed with members of the board. 11 11 11 II II8. 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 11 district, did the depository bank provide adequate security of the correct type? X Yes No II9. The water district's taxes were collected by (check one) : a. An employee of the district / / IIb. The county tax assessor-collector / / c. A city or other tax assessor-collector / X / d. More than one of the above / / II 10. Was the tax assessor-collector bonded as required by law? X Yes No 11 11. What was: a. The Tax-assessor-collector bonded for? $ 5,000 IIb. The greatest amount of the district's taxes in the tax assessor-collector's possession at any one time? $ 31,955 c. The frequency of tax receipts deposits with the bonded 11 depository? (1) Daily (December & January) / X / I (2) Weekly (Balance of Year) / X / 11 (3) Monthly f 1 d. The percent of the assessed valuation to fair market value? 100.0 % 11 12. We (check one) : a. Actually examined the records of the tax assessor- collector. / X / h_ Perceived written confirmation for tax data from the / / / tax assessor-collector. c. Accepted tax data furnished by the district's 11 office. / / 13. As a result, were local tax revenues (including delinquent 11 taxes and interest and penalties on taxes) properly separated for debt service? X Yes No II II14. Was the water district in compliance with applicable bond resolutions, with the general or special legislation under 11 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? II (Attach a continuation page if necessary) X* Yes No *The District's bond resolutions require a complete II engineering inspection report annually. A complete inspection report has not been made, however, specific engineering reports are made and the II Engineer is consulted for all additions and expansions. II The provisions of the bond resolutions relating to debt service requirements have not been met and the cash allocated for these purposes is not sufficient to meet upcoming debt service requirements. However, II the ad valorem tax levied by the District has been sufficient to meet the annual bond principal and interest payments not provided by funds from the II bond sales. II II 11 11 I I 11 II 1 F IICERTIFICATE OF THE BOARD OF DIRECTORS II CLEARWOODS IMPROVEMENT DISTRICT Harris Name of Water District County 1 IIWe, the undersigned, do hereby certify that the audit report of the above named Water District for the fiscal year ended April 30, 1981 was received by the Board of Directors on the day of , 1981 and was reviewed II and / / approved / / disapproved at a meeting of the Board of Directors on the day of , 1981. I II II IISignature of Board Secretary Signature of Board President II II (If the audit report was disapproved, as checked above, the reasons therefore must be listed below or on an attachment hereto.) 11 I II I 11