HomeMy WebLinkAbout1983 04 30 Financial Report - Clearwoods Improvement District Ito
CLEARWOODS IMPROVEMENT DISTRICT
REPORT ON FINANCIAL STATEMENTS
(With Supplemental Material)
YEAR ENDED APRIL 30, 1983
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bQEED OVE eco
CERTIFIED PUBLIC ACCOUNTANTS
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TABLE OF CONTENTS
I!
Exhibits Page
II Auditors' Report 1
Combined Balance Sheet - All Fund Types and A 2
Account Groups
Combined Statement of Revenues, Expenditures B 4
and Changes in Fund Balances - All Governmental
Fund Types
Statement of Revenues, Expenditures and Changes C 6
in Fund Balances - Budget and Actual - General
Fund
11
Ag Summary of Accounting Policies and Notes to 7
Financial Statements
Supplemental. Schedules
.41
Schedules
4
Ag Auditors' Report on Other Financial Information 15
11 Analysis of Changes in Cash and Temporary A-1 17
Investments - All Governmental Fund Types
11 General Long-Term Debt and Debt Service A-2 18
Requirements
4
Analysis of Changes in General Long-Term Debt A-3 20
11 Schedule of Temporary Investments A-4 21
Analysis of Taxes Receivable A-5 2
Ai
Analysis of Organizational Costs A-6 23
1! Analysis of Changes in General Fixed Assets A-7 25
Comparative Schedule - Revenues and Expenditures A-8 26
1! Five Years
Insurance Coverage A-9 28
11 Board Members, Key Personnel and Consultants A-10 30
11 Questionnaire Completed by the Auditor A-11. 33
Certificate of the Board of Directors A-12 41 •
1! Management Letter A-13 45
I3QEEDLOVE oco
CERTIFIED PUBLIC ACCOUNTANTS
RICHARD W.BREEDLOVE DONNA.LAND
3730 F.M.1960 West,Suite 300 363 North Belt,Suite 450
Houston,Texas 77068 Houston,Texas 77060
(713)440-3347 (713)448-2221
`+r .June 27, 1983
11
Board of Directors
Clearwoods Improvement District
Harris County, Texas
We have examined the Combined Financial Statements of Clearwoods Improvement
District, Harris County, Texas, as of and for the year ended April 30, 1983,
as listed in the table of contents. 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, the Combined Financial Statements referred to above present
41 fairly the financial position of Clearwoods Improvement District, Harris
4 County, Texas, and the results of its operations for the year then ended,
in conformity with generally accepted accounting principles applied on a
11 basis consistent with that of the preceding year.
4
Exhibit A
it
CLEARWOODS IMPROVEMENT DISTRICT
IP
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
APRIL 30, 1983
Pi
a*
Governmental Fund Types
PP
it
Debt Capitol
General Service Projects
1/11
ASSETS i.
Cash $ 49 026 $ 73 641 $ 297 111
Temporary investments - restricted - 58 673 -
Total Cash & Temporary Investments 49 026 132 314 297
PP
Accounts receivable - net and accrued receivables 51 882 15 233 -
• Due from other funds 370 - -
Prepaid expenses 382 - -
Deposits 130 - - Pm
Physical plant - - - is
Organizational costs - - -
Amount available in Debt Service Fund - - - IP
Amount to be provided for retirement of
general long-term debt - -
Total Assets $101 790 $147 547 $ 297 PP ,
LIABILITIES AND FUND EQUITY
Liabilities:
Accounts payable and accrued expenses $ 45 275 $ 369 $ -
Deferred tax revenue - 14 809 -
Due to other funds - 370 -
Refundable deposits 13 899 - -
Bonded debt payable - - -
Total Liabilities 59 174 15 548 - tP
Fund Equity:
Unreserved - r
Designated for debt service - 131 999 -
Und.esignated 42 616 - 297
Investment in general fixed assets - - -
!P
Total Fund Equity 42 616 131 999 _ 297
TOTAL LIABILITIES AND FUND EQUITY $101 790 $147 547 $ 297r
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See the accompanying Summary of Accounting Policies and Notes to Financial Statements.
2 !P
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11 Account Groups
Lang-Term General Memorandum
Debt Fixed Assets Total
11
1! $ - $ - $ 122 964
- 58 673
- - 181 637
- - 67 115
lii - - 370
- - 382
MP - - 130
- 2 815 583 2 815 583
- 299 879 299 879 ,
II 131 999 - 131 999
2 123 001 - 2 123 001
41 $2 255 000 $3 115 462 $5 620 096
11
$ - $ - $ 45 644
- - 14 809
_ - 370
13 899
2 255 000 - 2 255 000
41 2 255 000 - 2 329 722
a
41
- -- 131 999
- - 42 913
1! - 3 115 462 3 115 462
- 3 115 462 3 290 374
1! $2 255 000 $3 115 462 $5 620 096
Il
Exhibit B -
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CLEARWOODS IMPROVEMENT DISTRICT
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED APRIL 30, 1983 P
Debt
General Service
Fund Fund
REVENUES:
Service revenue $299 326 $ -
Tap connection fee 32 428 -
Property taxes - 278 877
Penalty and interest revenues 8 887 15 855 P
Insurance claim proceeds 3 241 -
Total Revenues 343 882 294 732
PP
EXPENDITURES:
Purchased sewer services 64 394 -
Professional fees 21 920 2 081 P
Purchased and contracted services 63 150 8 162 ,
Consumable supplies and materials 861 -
Recurring operating expenses 126 275 3 645
Water tap expense 6 620 -
Principal retirement - 105 000
Interest & fees - 153 333
Total Expenditures 283 220 272 221
EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 60 662 22 511
OTHER FINANCING SOURCES (USES) :
Reclassification of investment in uncollected taxes - (21 955)
Operating transfers in - - "
Operating transfers out (2 856) -
Total Other Financing Sources (Uses) (2 856) (21 955)
EXCESS OF REVENUES & OTHER SOURCES
OVER (UNDER) EXPENDITURES & OTHER USES 57 806 556
FUND BALANCE AT MAY 1, 1982 (15 190) 131 443
FUND BALANCE AT APRIL 30, 1983 $ 42 616 $131 999
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See the accompanying Summary of Accounting Policies and Notes to Financial
Statements. 4
Capital Projects Memorandum
Fund Total
1!
$ - $299 326
32 428
278 877
- 24 742
3 241
- 638 61411/ 394
1 - 24 001
- 71 312
- 861
- • 129 920
4 - 6 620
105 000
153 333
- 555 441
- 83 173
(21 955)
1,11 23 924 23 924
Ai (2 856)
23 924 (887)
4
23 924 82 286
(23 627) 92 626
$ 297 $174 912
111
1!
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Exhibit C
OP
CLEARWOODS IMPROVEMENT DISTRICT
OP
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES - BUDGET AND ACTUAL - GENERAL FUND
FOR THE YEAR ENDED APRIL 30, 1983
PP
i.
Favorable
(Unfavorable)
Actual Budget Variance OP
ii
REVENUES:
Service revenue $299 326 $270 000 $ 29 326 PP
Tap connection fees 32 428 5 000 27 428
Penalty and interest revenues 8 887 7 000 1 887
Insurance Claim Proceeds 3 241 - 3 241
PP
Total Revenues 343 882 282 000 61 882
EXPENDITURES: P
Purchased sewer services 64 394 105 000 40 606
Professional fees 21 920 21 500 (420)
Purchased and contracted services 63 150 63 000 (150)
PP
Consumable supplies and materials 861 900 39
Recurring operating expenses 126 275 89 500 (36 775) I'
Water tap expense 6 620 - (6 620)
Total Expenditures 283 220 279 900 (3 320)
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EXCESS OF REVENUES OVER EXPENDITURES 60 662 2 100 58 562
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OTHER FINANCING SOURCES (USES) !P
Operating Transfers Out (2 856) - (2 856)
EXCESS OF REVENUES & OTHER SOURCES OVER
(UNDER) EXPENDITURES & OTHER USES 57 806 2 100 55 706
FUND BALANCE AT MAY 1, 1982 (15 190) (15 190) - r
-
FUND BALANCE AT APRIL 30, 1983 $ 42 616 $ (13 090) $ 55 706
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See the accompanying Summary of Accounting Policies and Notes to Financial Statements.
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1!
CLEARWOODS IMPROVEMENT DISTRICT
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1983
NOTE (1) CREATION OF DISTRICT
Clearwoods Improvement District, Harris County, Texas was created by
Acts of the 59th Legislature, Regular Session 1965. The Board of
11 Directors held its organizational meeting on August 10, 1965, and the
first bonds were sold on March 21, 1967.
NOTE (2) SIGNIFICANT ACCOUNTING POLICIES
The accompanying financial statements have been prepared on the modified
accrual basis of accounting applicable to governmental funds in
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accordance with the standards established by Statement No. 1 issued by
the National Council on Governmental Accounting. Under this method,
all expenditures, except bond interest, and all revenues currently
fill available are accrued. The transactions of the District are accounted
for in the following funds and account groups:
11 Governmental Funds
44
General Fund - To account for all revenues and expenditures not required
1! to be accounted for in other funds.
Debt Service Fund -- To account for the accumulation of financial resources
for, and the payment of, general long-term debt principal and interest,
1! paid principally from property taxes levied by the District.
Capital Projects Fund - To account for financial resources designated to
1! construct or acquire capital facilities and improvements. Such resources
are derived principally from proceeds of the sale of bonds.
Account Groups
4
General. Fixed Assets - To account for the facilities of the District.
General Long-Term Debt - To account for the outstanding principal balance
of General Long-Term Debt obligations.
Memorandum Totals
The memorandum totals represent the aggregate amount of all governmental
11 funds and account groups included in the statements. No eliminations have
been made and this total does not present consolidated financial information.
11 1!
PP
0
CLEARWOODS IMPROVEMENT DISTRICT
IPP
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1983
Continued OP
NOTE (2) SIGNIFICANT ACCOUNTING POLICIES (continued) PP
General Fixed Assets
PP
The District capitalizes 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 revenues and interest expen- PP
ditures related to bond proceeds are being capitalized. These amounts
are shown on the Balance Sheet as District Organizational Costs and are
not being amortized.
110
The District capitalized the cost of meters and boxes and residential
lines as part of the water system in General Fixed Assets. The District
PP
does not maintain detailed fixed asset records, and thus detailed cost
information on individual assets is not readily available. The full cost
of facilities owned by the District is capitalized; funds provided by
others are shown as contributions in the Balance Sheet. Depreciation of
general fixed assets is not recorded in the accounts of governmental funds. 6
NOTE (3) WATER AND SEWER SERVICE RATES
!PP '
The District has established the following rates effective September 7, 1978:
Water Service !I
Residential and Commercial Monthly Charge:
PP
First 8,000 Gallons of Water Used (Minimum Bill) $ 7.00
Each 1,000 Gallons of Water Used Thereafter .65
Sewer Service
Residential and Commercial Monthly Charge:
First 50,000 Gallons of Water Used (Minimum Bill) $ 8.00*
Each 1,000 Gallons of Water Used Thereafter .25
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*Amended September 1, 1980.
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CLEARWOODS IMPROVEMENT DISTRICT
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1983
111
Continued
4i
NOTE (3) WATER AND SEWER SERVICE RATES (continued)
1:
Tap Fees
llResidential Tap Fee (3/4" Tap) $475.00
ild
The above fee includes the cost of meter, bcx and installation.
For connection of over 3/4 inch, the Distirct will establish
-a tapping charges by separate order or agreement.
41 Commercial tap-on fee shall be a negotiated amount per square
foot of land in addition to the cost of meter, box and in-
4
stallation.
rjrj Residential and commercial sewer inspection fee $ 25.00
Deposits
71
Per customer $ 15.00
I The following rates were established effective June 1, 1982:
Water Service
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Residential and Commercial Monthly Charge:
a
First 7,000 Gallons of Water Used (Minimum Bill) $ 7.00
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Each 1,000 Gallons of Water Used Thereafter .75
Sewer Service
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il Residential and Commercial Montly Charge:
First 20,000 Gallons of Water Used (Minimum Bill) $ 10.00
lie
Each 1,000 Gallons of Water Used Thereafter .50
Tap Fees
Ems) Residential Tap Fee (3/4" Tap) $600.00
Residential Tap Fee (3/4" Tap) non-residents 750.00
The above fee includes the cost of meter, box, and installation for
connections of. over 3/4 inch, the District will establish tapping
charges by separate order or agreement.
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411 Commercial tap-on fee shall be five cents per square foot of land
in addition to the cost of meter, box, and installation.
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CLEARWOODS IMPROVEMENT DISTRICT !
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1983
OP
Continued
NOTE (3) WATER AND SEWER SERVICE RATES (continued) PP
The following rates were established effective December 1, 1982:
OP
Tap Fees
Residential Tap Fee (3/4" Tap) $750.00
010
Residential Tap Fee (3/4" Tap) non-residents $850.00
The above fee includes the cost of meter, box, and installation for
connections of over 3/4 inch, the District will establish tapping PP
charges by separate order or agreement.
Commercial tap-on fee shall be ten cents per square foot of land in '
addition to the cost of meter, box, and installation. There is an
inspection fee of $50.00 for each commercial sewer tap.
PP
NOTE (4) PLEDGE OF TAX AND OPERATING EXPENSES
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 (5) ENGINEERING REPORT
The Bond Order states that a complete engineering inspection report of P.
the operations and physical condition of the plant and system shall be
made each year by an independent qualified engineer. At the Balance
Sheet date, said report had not been made.
NOTE (6) REDEMPTION OF BONDS
The outstanding bonds of Clearwoods 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 in inverse
numerical order for the purpose of retirement or refunding, or both, at
par, in addition to unpaid accrued interest. Bonds of the Series 1967,
Series 1967-A, Series 1972, and Series 1974 may be called on February
1, 1982, August 1, 1982, April 1, 1987, and September 1, 1989, respective-
ly, or any interest date thereafter. As of the report date, no bonds had
been called.
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CLEARWOODS IMPROVEMENT DISTRICT
46 SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1983
IIContinued
ii
NOTE (7) WATER AND SEWER SERVICE CUSTOMERS
The following is a comparison of the number of metered water and sewer
service customers serviced by the District:
Aii
April 30, 1982 1,221
II
April 30, 1983 1 364
Ai
NOTE (8) OPERATING AND TAX FUND PAYMENTS TO DEBT SERVICE FUND
Ai
The Bond Orders state that the District is to transfer on a monthly basis
to the Debt Service Fund, commencing when any part of the water and sewer
111 system is placed in operation, an amount not less than one-sixth of the
Adi 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.
III At the Balance Sheet date, the Operating and Tax Fund Revenues have not
'` been sufficient to make payments required by the Bond Order. However, the
AI
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.
NOTE (9) RESTRICTED CASH AND TEMPORARY INVESTMENTS
'tlail The following balances were restricted by the Bond Orders as of April 30,
1983:
'' Restricted For
Servicing of Acquisition of
Bonded Debt Fixed Assets
as Cash $ 73 641 $297
Temporary Investments 58 673 -
I $132 314 $297
NOTE (10) INSURANCE
The Bond Orders state that so long as any of the bonds are outstanding,
the District agrees to maintain insurance for the benefit of the holders
of bonds, on the system 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 $209,500 with an 800
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CLEARWOODS IMPROVEMENT DISTRICT
•
SUMMARY OF ACCOUNTING POLICIES AND NOTES TO FINANCIAL STATEMENTS 04
APRIL 30, 1983
Continued PP
NOTE (10) INSURANCE (continued) On
co-insurance provision and flood coverage of $15,000 on the sewer
pump building and one lift station and $10,000 on the building
PP
contents. The District has comprehensive general liability coverage
with a maximum limit of $300,000. Since no objective criteria has 4
been established for insurance coverage a determination could not be
made whether or not the District complied with the requirement. P"
NOTE (11) SETTLEMENT
During the year, the District settled in its favor an amount payable 6
of $25,907 due to the City of Freiendswood by the general operating
account. The amount related to payments due for the District's use PP
of the City of Friendswood's North Interceptor, lift station and force
main, to transport sewage to the Blackhawk Regional Sewage Treatment
Plant. There was also a disputed amount of $21,068 concerning the cost
of expansion of this regional sewage treatment plant. This amount was
also settled in favor of the District. The District negotiated the
settlement for a total cost to the District of $5,000.
PP
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SUPPLEMENTAL SCHEDULES
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WA
b EEDLOVE oco
CERTIFIED PUBLIC ACCOUNTANTS
RICHARD W.BREEDLOVE DONN A.LAND
3730 F.M.1960 West,Suite 300 363 North Belt,Suite 450
0111 Houston,Texas 77068 Houston.Texas 77060
(713)440-3347 (713)448-2221
:
41
June 27, 1983
1114
Board of Directors
Clearwoods Improvement District
Harris County, Texas
111 In our opinion, the accompanying information is stated fairly in all
material respects in relation to the combined financial statements
taken as a whole, of Clearwoods Improvement District for the year
ended April 30, 1983, which are covered by our opinion presented in
the first section of this report. The accompanying information is
supplemental to the financial statements and is not essential for a
fair presentation of the financial position and results of operations.
Our examination, which was made primarily for the purpose of forming
an opinion on the financial statements taken as a whole, included
such tests of the accounting records, from which the supplementary
information was compiled, and such other auditing procedures as we
considered necessary in the circumstances.
10
PK 6.
411
41
111
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foo
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p
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The Schedule of Notes Payable has been omitted from the Supplemental
Schedules because the District had no notes payable outstanding
as of the balance sheet date.
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OP
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Schedule A-1
CLEARWOODS IMPROVEMENT DISTRICT
ANALYSIS OF CHANGES IN CASH AND TEMPORARY INVESTMENTS -
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED APRIL 30, 1983
a
1411
Debt Capital
General Service Projects Memorandum
Fund Fund Fund Total
1 SOURCES OF CASH AND TEMPORARY INVESTMENTS:
Cash receipts from revenues $322 640 $301 622 $ - $624 262
Cash transfers from other funds1111
- - - -
Total Cash and Temporary Investments 322 640 301 622 - 624 262
APPLICATIONS OF CASH AND TEMPORARY INVESTMENTS:
AM Cash disbursements for -
Current expenditures 305 110 21 037 - 326 147
Debt service - 258 333 - 258 333
Transfer to other funds - - - -
Total Cash and Temporary Investments
Applied 305 110 279 370 - 584 480
INCREASE (DECREASE) IN CASH AND TEMPORARY
INVESTMENTS 17 530 22 252 - 39 782
CASH AND TEMPORARY INVESTMENT BALANCES
BEGINNING OF YEAR 31 496 110 062 297 141 855
CASH AND TEMPORARY INVESTMENT BALANCES
END OF YEAR $ 49 026 $132 314 $ 297 $181 637
4401
1111
41111
17
Schedule A-2 o,,,
CLEARWOODS IMPROVEMENT DISTRICT
/R
GENERAL LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS
APRIL 30, 1983
P
Series 1967 Series 1967A
Principal Interest Due Principal Interest Due
For the Years Due August 1, Due August 1, /i
Ending April 30 February 1 February 1 Total February 1 February 1 Total
PP
1984 $ 75 000 $ 16 250 $ 91 250 $ 10 000 $ 38 400 $ 48 400
1985 75 000 12 500 87 500 10 000 37 800 47 800
1986 75 000 8 750 83 750 10 000 37 200 47 200 pp
1987 75 000 5 000 80 000 10 000 36 600 46 600
1988 25 000 1 250 26 250 75 000 36 000 111 000
1989 - - - 75 000 31 500 106 500
pew
1990 - - - 75 000 27 000 102 000
1991 - - - 75 000 22 500 97 500
1992 - - - 100 000 18 000 118 000
1993 - - - 100 000 12 000 112 000
1994 - - - 100 000 6 000 106 000 ,
1995 - - - - - -
1996 - - - - - - lim
1997 - - - - - -
1998 - - - - - -
1999 - - - - - -
2000 - - - - - - ollo'
2001 - - - - - -
2002 - - - - - -
2003 - - - - - - Pi
2004 - - - - - -
TOTALS $325 000 $ 43 750 $368 750 $640 000 $303 000 $943 000 I+
P
CASH AND TEMPORARY INVESTMENTS BALANCES
AT APRIL 30, 1983
Debt Service Fund $132 314
Pw
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OPP
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IP
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18 OP
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II
Series 1972 Series 1974
Principal Interest Due Principal Interest Due Total
Due October 1, Due September 1, Annual
April 1 April 1 Total March 1 March 1 Total Requirements
II $ 10 000 $ 37 125 $ 47 125 $ 10 000 $ 55 360 $ 65 360 $ 252 135
15 000 36 500 51 500 20 000 54 685 74 685 261 485
15 000 35 438 50 438 20 000 53 335 73 335 254 723
20 000 34 425 54 425 20 000 51 985 71 985 253 010
20 000 33 075 53 075 30 000 50 635 80 635 270 960
20 000 31 725 51 725 30 000 48 565 78 565 236 790
20 000 30 375 50 375 30 000 46 465 76 465 228 840
30 000 29 025 59 025 30 000 44 335 74 335 230 860
30 000 27 000 57 000 30 000 42 160 72 160 247 160
30 000 24 975 54 975 30 000 39 940 69 940 236 915
t 30 000 22 850 52 850 40 000 37 690 77 690 236 540
40 000 20 925 60 925 40 000 34 650 74 650 135 575
40 000 18 225 58 225 40 000 31 570 71 570 129 795
1! 40 000 15 525 55 525 40 000 28 490 68 490 124 015
40 000 12 825 52 825 40 000 25 410 65 410 118 235
50 000 10 125 60 125 40 000 22 330 62 330 122 455
50 000 6 750 56 750 50 000 19 250 69 250 126 000
50 000 3 375 53 375 50 000 15 400 65 400 118 775
- - - 50 000 11 550 61 550 61 550
- - - 50 000 7 700 57 700 57 700
- - - 50 000 3 850 53 850 53 850
$550 000 $430 263 $980 263 $740 000 $725 355 $1 465 355 $3 757 368
II
II
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Schedule A-3
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CLEARWOODS IMPROVEMENT DISTRICT
1r
ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT
FOR THE YEAR ENDED APRIL 30, 1983
Pi
Bond Issues
Series Series Series Series 1!
1967 1967-A 1972 1974 Totals
1!
Interest Rate 5.00% 6.00% 6.75% 6.75% to
7.70% 111
Dates Interest
Payable 8/1, 2/1 8/1, 2/1 10/1, 4/1 9/1, 3/1 -
Bonds Outstanding
at Beginning of
Current Year $400 000 $650 000 $560 000 $750 000 $2 360 000
Bonds Sold
During
Current Year - - - - -
Retirements:
Principal $ 75 000 $ 10 000 $ 10 000 $ 10 000 $ 105 000
Bonds Outstanding
at End of
Current Year $325 000 $640 000 $550 000 $740 000 $2 255 000 1!
Retirements:
Interest $ 20 000 $ 39 000 $ 37 800 $ 56 035 $ 152 835
!!
Paying Agent's
Name & Address Series
1967: Allied Bank of Texas, Houston, Texas
Series
1967A: Allied Bank of Texas, Houston, Texas I!
Series
1972: Allied Bank of Texas, Houston, TexasI!
Series
1974: Allied Bank of Texas, Houston, Texas
1!
Bonds Voted: $6,480,000 Bonds Approved: $4,500 ,000 Bonds Sold: $2,850,000 1111.
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Schedule A-4
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CLEARWOODS IMPROVEMENT DISTRICT
IISCHEDULE OF TEMPORARY INVESTMENTS
FOR THE YEAR ENDED APRIL 30, 1983
Accrued
Interest
Interest Maturity Face Receivable
Rate Date Amount April 30, 1983
Debt Service Fund
Certificate of Deposit 8.00% 7/25/83 $58 673 $424
No. 480401364
I!
Ago
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Schedule A-5
CLEARWOODS IMPROVEMENT DISTRICT
ANALYSIS OF TAXES RECEIVABLE
AS OF APRIL 30, 1983
Taxes Receivable, May 1, 1982 $ 21 956
1982 Original Tax Roll $272 ]61 P
Adjustments 448 271 713
Total to be accounted for 293 669
Tax Collections - Current year 260 381
Prior year 18 479 278 860
PP
Taxes Receivable, April 30, 1983 $ 14 809 PP
Taxes Receivable by Years:
1982 $ 11 780
1981 945
1980 1 228
1979 395
1978 235
1977 226 p
y
Total Taxes Receivable $ 14 809
FP
Assessed Valuation Summary
Property Valuations 1982 1981 1980 1979 1978
Land $ 7 691 700 $ 7 716 700 $ 8 167 700 $ 7 998 200 $ 8 087 200
Personal Property 797 940 795 600 910 800 777 900 718 400
Improvements 33 381 300 33 343 300 37 100 600 35 572 700 33 430 600
f!
Total
Valuations $41 870 940 $41 855 600 $46 179 100 $44 348 800 $42 236 200
Tax Rate per $100
Valuation $0.65 $0.65 $0.65 $0.65 $0.65
Tax Year: January 1, 1982 to December 31, 1982IP
Percent of the assessed valuation to fair market price 100 %
Percent of current taxes collected to current taxes levied 95.7%
Percent of current and deliquent taxes collected to current
and delinquent taxes outstanding at beginning of tax year 95.0%
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Schedule A-6
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CLEARWOODS IMPROVEMENT DISTRICT
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DISTRICT ORGANIZATIONAL COSTS
APRIL 30, 1983
Balances Balances
May 1, 1982 April 30, 1983
Financial Advisors Fees $ 16 250 $ 16 250
Discount on Sale of Bonds 14 414 14 414
Bond Issue Costs 1 821 1 821
Bond Interest 245 349 245 349
Other Costs 3 066 3 066
Interest on Temporary Investments (135 825) (135 825)
Legal Fees 154 804 154 804
NI TOTAL $299 879 $299 879
-41
11 Amounts Provided By:
Capital Projects Fund $299 879 $299 879
Ai
Ai
1!
23
n.r
i '
Schedule A-7
CLEARWOODS IMPROVEMENT DISTRICT
ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
APRIL 30, 1983
I!
May 1, 1982 *Reductions April 30, 1983
Drainage System $ 608 329 $ 608 329
1! Sewer System 1 289 873 $ (21 060) 1 268 805
Water System 653 800 653 800
Engineering 255 027 255 027
Land 29 622 29 622
TOTAL $2 836 651 $ (21 068) $2 815 583
I,
Amounts Provided By:
111
44 General Fund $ 105 920 $ 105 920
41 Capital Projects Fund 2 727 231 $ (21 068) 2 706 163
44
Contributed by Developers 3 500 3 500
In
$2 836 651 $ (21 068) $2 815 583
4
1:
4,
*The reduction of $21,068 relates to the settlement by the District during
1982 of an amount previously disputed related to the 1981 expansion of the
Blackhawk Regional Sewage Treatment Plant. See Note (11) .
+,r
1!
11
11 25
44
Schedule A-8
CLEARWOODS IMPROVEMENT DISTRICT
P
COMPARATIVE SCHEDULE - REVENUES AND EXPENDITURES it
FIVE YEARS ENDED APRIL 30, 1983
OP
Amount ti
1983 1982 1981
GENERAL FUND REVENUES:
OP
Service revenues $299 326 $238 366 $231 304
Tap connection revenues 32 428 105 168 3 100 `
Penalty and interest revenues 8 887 6 613 10 493
Insurance claim proceeds 3 241 _ _ PP
Total General Fund Revenues 343 882 350 147 244 897
GENERAL FUND EXPENDITURES:
Purchased sewer services 64 394 104 230 -
Professional fees 21 920 21 271 20 414
Purchased & contracted services 63 150 60 725 63 245 PP
Consumable supplies and materials 4 486 1 599 3 010
Recurring operating expense 122 650 112 115 151 860
Water tap expense 6 620 1 585 2 175
Total General Fund Expenditures 283 220 301 525 240 704
EXCESS GENERAL FUND REVENUES rill
OVER EXPENDITURES $ 60 662 $ 48 622 $ 4 193
DEBT SERVICE FUND REVENUES:
Tax revenues $278 877 $276 487 $290 178
Penalty and interest 4 933 6 911 2 300
Interest on investments 10 922 6 211 20 578
Total Debt Service Revenues 294 732 289 609 313 056 rP
DEBT SERVICE FUND EXPENDITURES:
Tax collection expenditures 13 888 9 912 9 973
Debt service interest and fees 153 333 157 510 164 713 17
Debt service principal 105 000 80 000 80 000
Total Debt Service Expenditures 272 221 247 422 254 686til
EXCESS DEBT SERVICE REVENUES
OVER EXPENDITURES $ 22 511 $ 42 187 $ 58 370li,
Average Annual Unpaid Bond Principal
and Interest $178 922 $182 509 $184 890
r
Coverage (Excess General Fund Revenue
plus net Tax Revenue c Average
Annual Unpaid Bond Principal
and Interest) 1.68 1.73 1.54
No. of Water & Sewer Customers (year end) 1 364 1 221 1 220r
Total Water Pumped into System
( '000's gallons) 146 989 136 810 159 466
r
Total Water Billed to Customers
( '000's gallons) 144 808 123 595 139 394
26 1!
Iri
II
I!
Percent of Fund Totals _
1980 1979 1983 1982 1981 1980 1979
# $227 463 $193 956 87.1% 68.1% 94.4% 87.5% 90.0%
10 552 13 580 9.4 30.0 1.3 4.1 6.3
21 964 7 874 2.6 1.9 4.3 8.4 3.7
- .9 - - - -
259 979 215 410 100.0 100.0 100.0 100.0 100.0
1,
mii - - 18.7 29.8 - - -
24 979 22 250 6.4 6.1 8.3 9.6 10.3
42 434 37 275 18.4 17.3 25.8 16.3 17.3
al 2 540 2 230 1.3 0.5 1.2 1.0 1.0
112 136 94 873 35.7 32.0 62.0 43.1 44.0
111 4 545 6 325 1.9 0.5 0.9 1.7 2.9
186 634 162 953 82.4 86.2 98.2 71.7 75.5
IN
$ 73 345 $ 52 457 17.6% 13.8% 1.8% 28.3% 24.5%
41
$289 630 $275 212 94.6% 95.5% 92.7% 94.3% 93.2%
5 264 3 258 1.7 2.4 0.7 1.7 1.1
4 _12 197 16 868 3.7 2.1 6.6 4.0 5.7
307 091 295 338 100.0 100.0 100.0 100.0 100.0
10
8 900 11 132
4.7 3.4 3.2 2.9 3.8
Aio
168 693 169 644 52.0 54.4 52.6 54.9 57.4
75 000 65 000 35.6 27.6 25.6 24.4 22.0
10
gt e
252 593 245 776 92.3 85.4 81.4 82.2 83.2
1! $ 54 498 $ 49 562 _7.7% 14.6% 18.6% 17.8% 16.8%
11 $187 260 $189 403
Ai
1!
1.89 1.67
41
40 1 210 1 117
122 346 146 404
11 112 372 139 432
Ai
27
Schedule A-9
I
CLEARWO0DS IMPROVEMENT DISTRICT
IP
INSURANCE COVERAGE
APRIL 30, 1983
OP
Amount
of OP
Type of Coverage From To Coverage
PLANT AND EQUIPMENT P
Fire and lightning, extended coverage,
explosion, vandalism and malicious !
mischief 6-14-80 6-14-83 $209,500
EMPLOYEE HONESTY, ETC.
PP
Tax Assessor/Collector 1-01-83 12-31-84 10,000
Directors 2-15-82 2-15-85 5,000 P
each director
FLOOD INSURANCE
Sewer Pump Building and one Lift Station - 15,000
Building Contents 9-01-82 9-01-83 10,000
COMPREHENSIVE GENERAL LIABILITY
Liability and Contractual Liability
Bodily injury, per person and aggregate 6-22-82 6-22-83 300,000
Property damage, per person and aggregate 6-22-82 6-22-83 100,000
r
r
28
!!
11
1!
Type of Policy
Corporation Clause
Insurer Stock/Mutual Co-Insurance
1,
National Surety Corporation Stock Yes 80%
NI
A4
4
The St. Paul Insurance Company Stock No
The St. Paul Insurance Company Stock No
MI
National Flood Insurers Corporation Stock Yes 80%
National Surety Corporation Stock No
41
1114
411
4
29
4
Schedule A-10 up
CLEARWOODS IMPROVEMENT DISTRICT
BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS
APRIL 30, 1983
OP
Relationship
with Major Land
Term of Board Members Owners, Engi-
Office Resident neer, Attorney
Elected & Annual of & Tax Assessor-
Expires Salary Title District Collector p,
Robert H. Boger 4-02-83 Per Diem President Yes None
5115 Royal Parkway 4-02-85
1111
Friendswood, Texas 77546
Lee B. Simmons 4-02-83 Per Diem Vice Pres. Yes None
15747 Wandering Trail 4-02-85
Friendswood, Texas 77546
Herman M. Hayley 5-01-82 Per Diem Secretary Yes None
5315 Shady Oaks Lane 4-30-84
Friendswood, Texas 77546
fr
William M. Fuss 4-02-83 Per Diem Yes None
16330 Forest Bend 4-02-85
Friendswood,Texas 77546
Peter. S. Cunningham 5-01-82 Per Diem Yes None
5219 Shady Oaks Lane 4-30-84
Friendswood, Texas 77546
o-
Fees
Date Paid
Hired District Operator
Water District Service Co. 2-15-67 $61 650 No
4234 RichmondrP
Houston, Texas 77027
District (Legal Counsel)
W. James Murdaugh 4-29-66 $13 312 No
(Smith & Murdaugh)
1811 Houston Natural Gas Bldg.
Houston, Texas77002
District Tax (Assessor-Collector)
William Spencer 3-07-73 $ 8 162 No
5318 Pasadena Blvd. FP
Deer Park, Texas 77536
r
30
I,
111,
QUESTIONNAIRE COMPLETED BY AUDITOR
1111
I
P
Scheule A-11
CLEARWOODS IMPROVEMENT DISTRICT
11
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
FOR THE YEAR ENDED APRIL 30, 1983
U
1. At the time that you were engaged by the Board of Directors of
the above named district to perform this audit, was a copy of
the Water. District Accounting Manual made available to you? X
Yes No
01,
44 2. The Water District Accounting Manual prescribes accounting
methods and policies. After taking these into consideration,
41 did the local water district:
a. Maintain a proper classification of expenditures and revenues? X
s Yes No
b. Record expenditures and revenues according to GAAP and
4, consistent with the type of accounting system utilized? X
Yes No
41 c. Maintain the double-entry system of accounting? _ X
Yes No
MR 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
11,
e. Adhere to other provisions of the Water District Accounting
Manual? X
MO Yes No
4
3. Did the Board of Directors of the water district impose on you
any audit requirements in addition to those stated in the Annual
Audit Report Requirements? _ X
Yes No
S 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
Yes No
41 5. Did you obtain representation from the Board of Directors of the
water district that all records of the water district were made
available to you for your examination? X
Yes No
6. Did the water district:
RR a. Use the capital projects fund and debt service fund only
for the purposes authorized by the Board of Directors of the
water district and/or within the provisions of the applicable
U bond resolutions? X
33 Yes No
CLEARWOODS IMPROVEMENT DISTRICT R
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
FOR THE YEAR ENDED APRIL 30, 1983 OP
Continued
b. Properly escrow the required amount of cash as prescribed r
by the Texas Water Commission or disburse the escrowed
cash according to the terms prescribed by the Texas Water
Commission? X
OP
Yes No
c. Do business only with firms or corporations in which members
of the Board of Directors had no pecuniary interest? X Ile
Yes No
d. Observe the conditions for obtaining grants, gifts, etc. , PP
or observe agreements with governmental agencies for the
purpose of securing funds or services? X
Yes No
e. Have a contract for Social Security coverage for its
employees with the Texas Employees Retirement System? X*
Yes No P
f. Make remittances of Social Security taxes according to the
terms of the contract for Social Security coverage with PP
the Social Security Division of the Texas Employees Retirement
System? X*
Yes NO
P
g. Deposit receipts to the proper funds kept by the approved
depository bank? X
Yes No
h. Draw checks only on funds approved by the Board of Directors
and signed by authorized personnel? X
PP
Yes No
7. Did you issue a management letter to administrative officials of
the water district which sets forth your comments (based on matters
which came to your attention during your examination) for strength-
ening internal controls and improving administrative efficiency
and procedures? _ X p'
Yes No
OP
a. Were your recommendations explained to and discussed with
administrative officials of the water district? X
Yes No
b. The date of your most recent management letter was
June 27 1983.
p
*The District has no paid employees. 0
34
!!
CLEARWOODS IMPROVEMENT DISTRICT
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
FOR THE YEAR ENDED APRIL 30, 1983
Continued
c. Is there evidence indicating that your previous year's
recommendations have been or are being implemented? X __
Yes No
d. Has a copy of the management letter been filed with the
Texas Department of Water Resources? X
Yes No
411
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,
4111 did the depository bank provide adequate security of the correct
type? X
Yes No
44
Please indicate for each depository:
41
14 a. Name Texas Commerce Community Commonwealth
Bank Nat'l Bank Savings
N
Ad b. Amount of F.D.I.C.
coverage $500 000.00 $100 000.00 $100 000.00
IR
c. Amount of bond or
other security pledged
as of the end of the fiscal year -
-
RI
d. Largest cash balance $130 832.72 $ 57 202.36 $ 75 958.42
lle. Date of largest
cash balance
12-17-82 03-31-83 02-28-83
f. Amount of bond or
security pledged at
the time of the largest
cash balance (exciud-
ing F.D.I.C. coverage) _ _ _
4
II
4
4
35
t
CLEARWOODS IMPROVEMENT DISTRICT OP
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
FOR THE YEAR ENDED APRIL 30, 1983 OP
Continued
r
9. The water district's taxes were collected by (check one) :
14.
a. An employee of the district
r
b. The county tax assessor-collector
r
c. A city or other tax assessor-collector X
d. More than one of the above
10. Was the tax-assessor collector bonded as required by law? X _ r
Yes No
11. What was:
a. The tax assessor-collector bonded for? $ 10 000.00
b. The greatest amount of the district's taxes in the tax
assessor-collector's possession at any one time? $ 73 268.65
c. The frequency of the tax receipts deposited with the bonded r
depository?
1) Daily (December) X !P
2) Weekly (balance of year) X FP
3) Monthly
d. The precent of the assessed valuation to fair market value? 100.0% P
36
4,
0,
CT.RARWOODS IMPROVEMENT DISTRICT
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
FOR THE YEAR ENDED APRIL 30, 1983
A Continued
12. We (check one) :
44
PO a. Actually examined the records of the tax assessor-collector. X
OR b. Received written confirmation for tax data from the tax
assessor-collector.
S
c. Accepted tax data furnished by the district's office.
4
OR
13. As a result, were local tax revenues (including delinquent taxes
and interest and penalties on taxes) properly separated for
debt service? X
414, Yes No
14. Was the water district in compliance with applicable bond
OP 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? X*
PP Yes No
411 *The District bond resolutions require a complete engineering inspection report
a annually. A complete inspection report has not been made, however, specific
engineering reports are made and the Engineer is consulted for all additions
5 and expansions.
The provisions of the bond resolutions relating to debt service requirements
have not been met. The bond Orders state that the District is to transfer on
a monthly basis to the Debt Service Fund, commencing when any part of the water
; and sewer system is placed 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 of the principal. In addition, an
amount equal to 20% of such monthly payments is to be paid to the Debt Service
Fund until the balance is equal to the total principal and interest requirements
for the current year and the next succeeding year. At the Balance Sheet date,
40
x the Operating and Tax 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 in the past and there is no
indication that the requirements will not be met in the future.
11,
41
A 37
11,44!,'7,
I
CERTIFICATE OF THE BOARD OF DIRECTORS
I
ON
411
-4
4111
111
Schedule A-12
40
A
OP
444,
CERTIFICATE OF THE BOARD CF DIRECTORS
40
CLEARWOODS IMPROVEMENT DISTRICT Harris
Name of Water District
44
We, the undersigned, do hereby certify that the audit report of the above
named water district for the fiscal P
year ended April 30, 1983 was
received by the Board of Directors on the 8th day of August 1983
014 and was reviewed and /g/ approved / / disapproved at a meeting of the
Board of Directors on the 12thday of September , 1983.
Signature of Board Secretary Signature of Board President
t
40
4,
4
1,
4
4
4
4
&Al &Al t,,A111 t;41 t tan t-oz vim
I
BQEEDLOVE oco
CERTIFIED PUBLIC ACCOUNTANTS
RICHARD W.BREEDLOVE DONN A.LAND
3730 F.M.1960 West,Suite 300 363 North Belt,Suite 450
Houston,Texas 77068 Houston,Texas 77060
(713)440-3347 (713)448-2221
August 1, 1983
!I
Board of Directors
Clearwoods Improvement District
Harris County, Texas
RE: Year ended April 30, 1983
Dear Board Members:
11 We have examined the financial statements of the above named District. As
part of our examination, we made a study and evaulation of the District's
System of internal accounting control to the extent we considered necessary
to evaluate the system as required by generally accepted auditing standards.
Under these standards, the purpose of such evaluation is to establish a
basis for reliance thereon in determining the nature, timing, and extent of
41 other auditing procedures that are necessary for expressing an opinion on
the financial statements.
411 There are inherent limitations that should be recognized in considering the
potential effectiveness of any system of internal accounting control. Pro-
jection of any evaluation on internal accounting control to future periods
is subject to the risk that the procedures may become inadequate because of
41 changes in conditions and that the degree of compliance with the procedures
may deteriorate.
40 Our study and evaluation of the District's system of internal accounting
control for this specific year ended, which was made for the purposes set
forth in the first paragraph above was not designed for the purpose of ex-
40 pressing an opinion on internal accounting control, and it would not neces-
sarily disclose all weaknesses in the system. No major internal control
weaknesses were noted during the examination of the District's financial
statements for the period then ended.
b Very truly yours,
Richard W. Breedlove
41