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Home My WebLink About1982 03 31 Single Audit Report - HArris county water controland improvement district No.108 1 WHITTINGTON, MAY 8e CO. CERTIFIED PUBLIC ACCOUNTANTS 2323 VoSS. SUITE 340 HOUSTON, TEXAS 77037 (713) 977-2955 June 15 , 1982 To the Board of Directors of Harris County Water Control and Improvement District No. 108 We have examined the combined balance sheet - all fund types and account groups of Harris County Water Control and Improvement District No. 108 (a political subdivision of the State of Texas) as of March 31 , 1982 , and the related statement of combined revenues , expenditures and changes in fund balances - all governmental fund types , for the year then ended. The financial statements for the prior year were examined by other accountants and they have pre- viously rendered their opinion thereon. 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 . In our opinion, the statements referred to above present fairly the financial position of Harris County Water Control and Improvement District No. 108 at March 31, 1982 , 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, except for the changes made in the financial statements to conform to the requirements of Statement 1 of the National Council on Governmental Accounting, with which we concur, more fully described in Note 2 . (itg:ittApn1 HARRIS COUNTY WATER CONTROL AND IMP COMBINED BALANCE SHEET - ALL FUND March 31 , 19 . Totals norandum Only) n 31, March 31, General 32 1981 ASSETS Cash $ 53, 1f3, 609 $ 149, 438 Time deposits 124 , 23, 926 326, 995 Receivables (net of allowances for uncollectibles) Accounts 34 , 74 , 743 38 , 239 Taxes _ 1 , 109 21, 973 Accrued interest 61, 437 2, 824 Due from other funds - 935 73, 827 Prepaid expenses E 863 1, 304 Land _ 1, 675 1, 675 Water system _ 5, 426 525, 426 Sewage system _ 4 , 252 734, 252 Drainage system _ 2, 735 562, 735 Engineering costs _ 4 , 159 174, 159 Construction in progress _ 0, 460 - Amount available in Debt Service Fund _ 2 , 703 331, 719 Amount to be provided for retirement of long-term debt _ 7, 297 2, 258, 281 Total assets $214 , :2, 329 $5, 202, 847 LIABILITIES AND FUND EQUITY Liabilities - Accounts payable $ 26, -7, 478 $ 23, 105 Contracts payable - retained percentage _ 8 , 376 - Due to other funds - 935 73, 827 Refundable deposits g , (8, 661 4, 466 General obligation bonds payable _ 0, 000 2, 590, 000 Total liabilities $ 35, :5 , 450 $2, 691 , 398 Fund equity - Investment in general fixed assets - 8 , 707 $1, 998, 247 Fund balances - Reserved for debt service: Series 1971 and 1971A Bonds _5, 525 331, 719 Series 1970A Bonds _5, 000 - Undesignated 178, 7, 647 181, 483 Total fund equity 178, 6, 879 2, 511, 449 Total liabilities and fund equity $214, 2, 329 $5, 202, 847 ancial statements HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUND TYPES For The Fiscal Year Ended March 31, 1982 Totals ItGovernmental Fund Types (Memorandum Only) Capital Year Ended Debt Service Projects March 31, March 31, General Fund Fund Fund 1982 1981 Revenues - Water and sewer services $276,461 - - $276,461 $264,643 Taxes collected - $261,133 - 261,133 • 257,599 Penalties and interest 24,672 25,727 $ 26,354 76,753 39,144 Miscellaneous revenues 4,663 - - 4,663 655 Total revenues 305,796 286,860 26,354 619,010 562,041 • Expenditures - Current: Purchased sewer services $129,089 - - $129,089 $109,808 Contracted services 41,893 $ 4,800 - 46,693 46,013 Professional fees 14,408 - - 14,408 21,075 Utilities 18,159 - - 18,159 15,521 ' Repairs and maintenance 39,830 - - 39,830 36,173 Other operating expenses 10,473 - - 10,473 13,425 Miscellaneous - 1,797 - 1,797 1,857 Capital outlay - - $190,460 190,460 - Bond issue costs - - 15,120 15,120 - Debt service: Principal retirements - 65,000 - 65,000 55,000 Interest paid - 199,935 - 199,935 196,314 Total expenditures 253,852 271,532 205,580 730,964 495,186 Excess of revenues over (under) expenditures 51,944 15,328 (179,226) (111,954) 66,855 Other financing sources (uses) - Proceeds of general obligation bonds - - 200,002 200,002 - Operating transfers in 73,827 - - 73,827 - Operating transfers out - (73,827) - (73,827) - Increase/(decrease) in uncollected taxes - (864) - (864) 314 Total financing sources (uses) 73,827 (74,691) 200,002 199,138 314 Excess of revenues and other sources over (under) expenditures and other uses 125,771 (59,363) 20,776 87,184 67,169 Fund balances, March 31, 1981 53,065 450,085 53,664 556,814 489,645 Prior year's adjustments - Amount shown in prior year as Cash with Fiscal Agent actually paid to Paying Agent in payment of bond principal and interest prior to year end - (141,866) - (141,866) - Elimination of unamortized discount on sale of bonds - (43,612) - (43,612) - Overstatement of prior year's cash - - (348) (348) - Fund balances, March 31, 1981, as adjusted 53,065 264,607 53,316 370,988 556,814 Fund balances, March 31, 1982 $178,836 $205,244 $ 74,092 $458,172 $556,814 CSee notes to financial statements i HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 NOTES TO FINANCIAL STATEMENTS March 31, 1982 Note 1 : Creation of the District - Harris County Water Control and Improvement District No. 108 was created by an order of the Texas Water Rights Commission on October 22, 1968. The Board of Directors held its first meeting on November 7, 1968 and the first bonds were sold on August 31 , 1970. Note 2 : Summary of accounting policies - The Texas Water Rights Commission (Texas Department of Water Resources) adopted a "Water District Accounting Manual" in 1974 and the use of the Manual by all water districts was required by the Commission beginning January 1, 1975. The accrual basis of accounting is followed by the District and all financial statements were prepared on this basis, except that tax revenues are reported on the cash basis, but the net change in taxes receivable is recorded and included in the fund balance of the Debt Service Fund. The basic financial statements of the District were changed to conform to the requirements of Statement 1 of the National Council of Governmental Accounting in compliance with directives of the Texas Department of Water Resources. The principal effect of this change is to present financial statements of fund types in combined form, rather than by individual funds as was previously the practice. Accordingly, the Tax Fund and the Debt Service Fund have been combined. The effect of the change in the District ' s financial position is to reduce general fixed assets by $270, 812, representing an elimination of the organizational costs of the District and by reducing the assets and fund balance of the Debt Service Fund by $43, 612, representing an elimination of the unamortized portion of discounts on sale of bonds; net revenues of the Debt Service Fund for the year have also been increased by $3, 598 because of the discontinuance of the annual write- off of unamortized discount. All of the fixed assets of the District are included in the general fixed assets group of accounts and are stated at cost. The District has the policy of expensing currently any repairs or maintenance which do not extend the life of the assets or increase the assets value. Depreciation is not provided in accordance with accepted practice for non-enterprise funds. The District is not required by law to adopt a budget for the General Fund and annual budgets are not prepared. Budgets are set, from time to time, for extraordinary repair programs and similar non-recurring items of expense. Note 3 : The District established a Capital Projects Fund in the prior year by transferring from the General Fund $49, 527 received in previous years from the federal government for EPA reimbursement grants and disaster assistance grants. Proceeds of the bonds issued during the year of $200, 002 were also deposited into the Fund. The principal purpose of the fund is to pay for the costs of the water system expansion program, which was substantially completed during the year. Bond Order and Legal requirements - Note 4 : Pledge of revenues - All of the District ' s 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 water- works and sanitary sewer system after deduction of resonable cost of administration, efficient operation and adequate maintenance of the District ' s service facilities in the manner provided by Chapter 217, Acts of the Regular Session of the 52nd Legislature of Texas, 1951. Note 5 : Debt service requirements - Series 1970A - 1972 - 1981 : The Bond Orders for the above named series of bonds require that while said bonds or any part of the principal and interest thereof are outstanding and unpaid, there shall be levied an ad valorem tax upon all taxable property within the District sufficient in amount to pay the interest on such bonds, together with an additional amount to be placed in the sinking fund sufficient to redeem such bonds at their maturity. At such time as the net revenues from operation of the system, pledged to the payment of these bonds, together with money derived from taxes - may have accumulated a surplus in the sinking fund equal to the sum to be required in the succeeding year to pay the in- terest and principal of the District ' s obligations maturing in that year, the District ' s annual tax levies may be lowered to produce not less than 25% of the bond maturities for each succeeding year. When- ever the actual experience of three consecutive years demonstrates that the net revenues are adequate to protect the maturities of the District ' s obligations, the District ' s tax may be wholly abated, until further experience demonstrates the necessity to again levy taxes to avoid default in the payments of the District ' s obligations as they may mature. Series 1971 and 1971A Bonds: The Bond Orders for the Series 1971 and 1971A bonds require the establishment of a Reserve Account by setting out from the net revenues of the system and paying into the Bond Fund (i.e. Debt Service Fund) a sum equal to 20% of the total monthly principal and interest requirements for the next succeeding maturity of principal and interest until said fund shall consist of a sum equal to the total principal and interest requirements for the next succeeding year; current interest and principal requirements are to be deposited in equal monthly installments . At March 31 , 1982 the Reserve Account contained the amounts required by the Bond Orders. Note 6 : Redemption of bonds - The outstanding bonds of the District 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 plus accrued interest. Bonds of the Series 1970A, 1971, 1971A, 1972, and 1981 may be called on October 1, 1985, April 1, 1985, April 1, 1986, April 1, 1987, and April 1, 1995, respectively, or any interest payment date thereafter. Note 7 : Engineers report - The Bond Orders of the Series 1971 bonds require a complete engineering inspection and report of the operations and physical condition of the system to be made each year by an independent qualified engineer. During the fiscal year the District ' s independent engineer reviewed and reported on certain sections of the system in connection with the construction of the expansion of the water system. Note 8 : Contract with the City of Friendswood - The District entered into a waste disposal contract with the City of Friendswood, Texas in 1971 and under the terms of this con- tract the District constructed lines and facilities to transport waste on the City' s sanitary sewer trunk line facilities. Also, in 1972, the District paid the City $239, 000 for expansion and improvement of the City' s sewage treatment facilities to meet state and federal regulations. Under this contract the District is entitled to have up to 460, 000 gallons per day treated by the City with the City being responsible for all maintenance and operation of the plant. In 1980, the District entered into another contract with the City whereby 85% of the sewer service revenues of the District is to be paid for waste disposal which increased the District ' s annual sewer treatment fservice costs by approximately 35%. 4 Note 9: Water and sewer rates and customers - The following monthly water and sewer service rates are currently in effect. Water Service Residential and commercial : First 5, 000 gallons of water used (minimum bill) * $6.00 Each 1, 000 gallons of water used thereafter .95 *Master metered townhouses and apartment projects are based on first 5, 000 gallons of water used times the number of units. Sewer Service Residential and commercial : First 3, 000 gallons of water used (minimum bill) * $7. 00 Each 1, 000 gallons of water used thereafter .90 *Master metered townhouses and apartment projects are charged $8.00 for each unit. 011 Five year summary of customers at March 31 : 1982 1981 1980 1979 1978 1 , 146 1, 158 1, 158 1, 158 1 , 153 Note 10: Insurance coverages - The Bond Orders require that so long as any of the bonds are out- standing, the District agrees to maintain insurance for the benefit of the bondholders, of a kind and in an amount which would usually be carried by private companies engaged in a similar type of business . The insurance agent/consultant of the District has determined that the insurance provision of the Bond Orders have been complied with in all material respects. WHITTINGTON, MAY & C.O. CERTIFIED PUBLIC ACCOUNTANTS 2323 VOSs. SUITE 340 414 HOUSTON. TEXAS 77057 (713) 977-2955 June 15 , 1982 The Board of Directors Harris County Water Control and Improvement District No. 108 16605 Bougainvilla Friendswood, TX 77546 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 Harris County Water Control and Improvement District No. 108 for the year ended March 31 , 1982, which are covered by our opinion presented in the first section of this report. The accompanying information is supplemental to the combined financial statements and is not essential for a fair presentation of the financial position and the results of its operations . Our examination was made primarily for the purpose of forming an opinion on the combined financial statements taken as a whole, and 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 . HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 March 31 , 1982 X D. Notes Required by the Water District Accounting Manual (See Notes to Basic Financial Statements) X E. Analysis of Changes in Cash and Temporary Investments X F. General Long-Term Debt Service Requirements by Years X G. Analysis of Changes in General Long-Term Debt X H. Schedule of Temporary Investments X I. Analysis of Taxes Receivable X J. Analysis of Organizational Costs P X K. Analysis of Changes in General Fixed Assets L. Schedule of Notes Payable X M. Comparative Schedule of Revenues and Expenditures - Five Year X N. Insurance Coverage X O. Board Members, Key Personnel and Consultants X P. Questionnaire Completed by the Auditors X Q. Certificate of the Board of Directors Schedule E HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 ANALYSIS OF CHANGES IN CASH AND TEMPORARY INVESTMENTS For The Fiscal Year Ended March 31, 1982 Debt Capital Totals General Service Projects (Memorandum Fund Fund Fund Only) Sources of cash and temporary investments - Cash receipts from revenues $308, 995 $288, 256 $ 26, 642 $623, 893 Proceeds from bond sales 200, 002 200, 002 Accrued interest on bond sales 935 935 Refundable deposits 4, 195 4, 195 Total cash and temporary investments provided 313, 190 288, 256 227, 579 829, 025 Application of cash and temporary investments - Cash disbursed for Current expenditures 249, 803 6, 597 256, 400 Capital outlay 171, 319 171, 319 4 Debt service 265, 870 265, 870 Bond issue costs 15, 120 15, 120 Prior year adjustments 348 348 Total cash and temporary investments applied 249, 803 272, 467 /186, 787 709, 057 Increase (decrease) in cash and temporary investments 63, 387 15, 789 40, 792 119, 968 Cash and temporary investment balances - At the beginning of the year 114, 617 166, 914 53, 036 334, 567 At the end of the year $178, 004 $182, 703 $ 93, 828 $454, 535 See notes to financial statements HARRIS COUNTY WATER CONTROL AND IMPRC Schedule F GENERAL LONG-TERM DEBT SERVICE REQUIR March 31, 1982 Series 1970-A Series 1981 Interest Interest Principal Due Pr Principal Due Total Fiscal Due April 1, Due April 1, Annual Years October 1 October 1 Total A April 1 October 1 Total Requirements 1983 $ 10, 000 $ 12, 123 $ 22, 123 - $ 5, 460 $ 5, 460 $ 107, 283 1984 15, 000 24, 995 39, 995 $ $ 5, 000 10, 780 15, 780 263, 362 1985 15, 000 23,720 38,720 5, 000 10,500 15, 500 267,807 1986 15, 000 22, 445 37, 445 5, 000 10, 220 15, 220 261, 878 1987 15, 000 21, 170 36, 170 5, 000 9, 940 14, 940 265, 598 1988 15, 000 19, 970 34, 970 10, 000 9, 520 19, 520 268,708 1989 15, 000 18, 770 33,770 10, 000 8, 960 18, 960 266, 305 1990 15, 000 17, 570 32, 570 10, 000 8, 400 18, 400 268, 283 1991 15, 000 16, 370 31, 370 10, 000 7, 840 17, 840 264, 653 1992 15, 000 15, 110 30, 110 10, 000 7, 280 17, 280 265,415 1993 15, 000 13, 850 28, 850 15, 000 6, 580 21,580 265,468 1994 20, 000 12, 590 32, 590 15, 000 5, 740 20, 740 269, 730 1995 20, 000 10, 910 30, 910 15, 000 4, 900 19, 900 267, 747 1996 20, 000 9, 230 29, 230 15, 000 4, 060 19,060 265,015 1997 20, 000 7, 550 27, 550 20, 000 3, 080 23, 080 276, 055 Ai 1998 20, 000 5,870 25, 870 20,000 1, 966 21, 966 275,705 1999 20, 000 4, 190 24, 190 25, 000 706 25, 706 283, 902 2000 20, 000 2, 510 22, 510 - - - 265,985 2001 20, 000 830 20,830 - - - 258,455 Totals $320, 000 $259, 773 $579, 773 $5 $195, 000 $115, 932 $310, 932 $4, 927, 354 See notes to financial statements Cash and temporary investment bale Debt Service Fund $] Tax Fund $, it HARRIS COUNTY WATER CONTROL AND It Alt ANALYSIS OF CHANGES IN GEN] For The Fiscal Year Endec 1< Interest rate 8.0( 8, Dates interest payable 4/1 - Bonds outstanding at beginning of the year $33( Bonds sold during the year - Retirements of principal 1( Bonds outstanding at end JP of the year 32( Retirements of interest 2( Paying agents - Series 1970A, Allied Bank of Texas, Hc 1971 and First National Bank, Der 1972 Series 1971A Allied Bank of Texas, Hc Series 1981 Bonds voted: $3, 000, 000 - Bonds appz it Schedule H dr HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 SCHEDULE OF TEMPORARY INVESTMENTS March 31, 1982 Interest Maturity Face Accrued Rate Date Amount Interest General Operating Fund - Time deposits - No. 14781 14 . 5% 4/19/82 $124, 230 $ 600 Debt Service Fund - Time deposits - No. 10-4066584 14 . 5% 4/21/82 43, 915 159 No. 1099 14 . 25% 9/20/82 122, 094 338 Total - Debt Service Fund 166, 009 497 Construction Fund - Time deposits - No. 10-4066584 14 . 5% 4/21/82 ' 93, 687 340 TOTAL - ALL FUNDS $383, 926 $1, 437 See notes to financial statements Schedule I HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 ANALYSIS OF TAXES RECEIVABLE For The Fiscal Year Ended March 31, 1982 Taxes receivable at the beginning of the year $ 21, 973 1981 Original tax roll 260, 269 Total to be accounted for 282, 242 Tax Collections - Current year 250, 041 Prior years 11, 092 261, 133 Taxes receivable at the end of the year $ 21, 109 Taxes receivable by fiscal years - 1977 and prior $ 504 1978 396 1114 1979 3, 814 1980 6, 167 1981 10, 228 $ 21, 109 Assessed Valuations Summary (000 omitted) Tax rate Personal per $100 Land Improvements Property Total Valuation 1981 $4 , 299 $26, 621 $871 $31, 791 82 1980 4 , 258 26, 419 776 31, 453 82 1979 4, 258 26, 414 746 31, 418 82 1978 4 , 258 26, 022 434 30, 714 80 1977 4, 287 25, 396 420 30, 103 90 Tax collection year - From October 1, 1981 to September 30, 1982 Percent of assessed valuation to fair market value 100. 0% Percent of current taxes collected to current tax levied 96.1% Percent of current and delinquent taxes collect to '' current and delinquent taxes outstanding at the beginning of the tax year 92. 5% See notes to financial statements Schedule J itok HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 ANALYSIS OF CHANGES IN DISTRICT ORGANIZATIONAL COSTS For The Fiscal Year Ended March 31, 1982 Balances March 31, 1981 and 1982 Costs during organization and construction - Legal fees $109, 125 Bond interest 169, 468 Amortized bond discount 3, 705 Fiscal agent fees 44, 000 Bond issue expenses 4, 527 Interest on temporary investments (60, 013) Total $270, 812 Amounts provided by - Construction Fund $157, 652 Debt Service Fund 113, 160 Total $270, 812 See notes to financial statements 4 Schedule K HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS For The Fiscal Year Ended March 31 , 1982 Balances Balances March 31 , Addi- Deduc- March 31, 1981 tions tions 1982 Land $ 1 , 675 - $ 1 , 675 Water system 525, 426 - 525, 426 Sewage system 734 , 252 - 734 , 252 Drainage system 562, 735 - 562, 735 Engineering fees 174 , 159 - 174 , 159 Construction in progress - Water system expansion - $190, 460 190, 460 Total $1 , 998, 247 $190, 460 - $2, 188, 707 Amounts provided by - Construction Fund $1, 882, 158 $190, 460 $2, 072 , 618 General Operating Fund 116, 089 - 116 , 089 Total amounts provided $1 , 998, 247 $190, 460 - $2, 188 , 707 See notes to financial statements water ana se Penalties Miscellany EPA reim' Generf Pu \\,\ 1 ‘1) \)4 ••• • gglOg FrOM cJo -------- ty etc. : , Employee hones 1/01/82 Stock None Tax Assessor and collector Public Official 4/01/81 Stock None Fire, Lightning, extended coverage, vandalism and malicious mischief: Water plants and sewage treatment plants 11/22/79 Stock 80% General Liability: Bodily injury, aggregate 11/22/81 Stock None Property damage, aggregate Auto liability, non-owned cars : Bodily injury Property damage Flood insurance: Comfort station, control house and contents 9/24/81 Faithful Performance Schedule 2/15/82 Stock None Bonds (5) Directors to financial statements 4iommmmmiwamu....mumagmmmnumimummm....._ Schedule 0 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS March 31,. 1982 Mailing address: 16605 Bougainville, Friendswood, TX 77546 Board Members Term Annual Name and Address Expires Salary Title Margaret K. George 4/1/84 Per President 3960 Laura Leigh Lane Diem Friendswood, Texas Dallas J. Martin 4/1/83 Per Vice 15706 Wandering Trail Diem President Friendswood, Texas David T. Nolan 4/1/84 Per 3832 Laura Leigh Lane Diem Secretary Friendswood, Texas Harvey Hillmon, Jr. 4/1/83 Per 17150 Barcelona Drive Diem Member Friendswood, Texas Gina Runnels 4/1/83 Per 16731 David Glen Diem Member Friendswood, Texas Date Hired Fees Paid Key Personnel - District Tax Assessor-Collector Alta Carbone Friendswood, Texas 4/19/70 $ 4, 800 Legal Counsel Smith & Murdaugh 1200 Travis Street Houston, Texas 1/19/70 $13, 415 Note: None of the directors listed above had any relationship with major land owners, engineers, attorneys or tax assessor/collector of the District. All Directors were residents of the District; tax assessor/collector and legal counsel were not residents of the District. Schedule P page 3 YES NO --' ' c. Is there evidence indicating that previous year (s) recommendations have been or are being implemented? X d. Has a copy of the management letter been filed with the Texas Department of Water Resources? X 8. The Texas Water Code makes specific provisions relating to security provided by depository banks. After con- sideration of the applicable laws pertaining to the specific water district, did the depository bank provide adequate security of the correct type? Please indicate for each depository: See page 4 9. The water district ' s taxes were collected by (check one) : a. An employee of the district b. The county tax assessor-collector 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 11 . What was : a. The tax assessor-collector bonded for? $ 10, 000 b. The greatest amount of the district ' s taxes in the tax assessor-collector ' s possession at any one time? $ 154 , 276 c. The frequency of tax receipts deposits with the bonded depository? (check one) (1) Daily (2) Weekly X, (3) Monthly *Deposits made montly after substanially all current taxes are collected. d. The percent of the assessed vaulation to fair 1111114 market value? 100% HARRIS COUNT • � Schedule P page 4 University Humble Fannin ;avings Assoc. National Bank Bank Houston, Houston, Houston, Texas Texas Texas a. Name of depository bank or savii b. Amount of FDIC or FSLIC coverage demand deposits $100, 000 $100, 000 $100, 000 time or savings deposits 100, 000 100,000 100, 000 c. Cash balance at year end - demand deposits - - 141 time or savings deposits 137, 601 122,094 - d. Amount of bond or par value of ; pledged as of year end none 41, 400 52, 000 required e. Was security adequate at year et according to criteria enumerat yes yes yes f. Largest cash balance amounted tc demand deposits - - 202, 454 time deposits or savings depot 137, 601 122, 094 - g. Date of largest cash balance 3/31/82 3/31/82 5/20/81 h. Amount of bond or par value of pledged at time of largest bal 41, 400 52, 000 - i. Was security adequate at date of according to criteria enumerat yes yes yes Note: By adoption of the Bond C bonds issued by the District, tt bondholders the net revenues frc and the taxes levied by the Dist of the FDIC Rules and Regulatior. Public Bond Issues. Where ar of a public unit has custody law or under the bond indentu to the holders of bonds issue deposit of such funds in an i to be a deposit by a trustee bondholders are pro rata bene beneficial interest shall be 0), scheduj „acre es it 7 00ii e yEs ect • NO Or 4ed records of the tax assessor ! L • A geCeived Written confirmation for the tax data from the tax assessor-collector. c. Accepted tax data furnished by the district ' s administrative offices. 3L As a result, were local tax revenues (including delinquent taxes and interest and penalties on taxes) properly separated for debt service? X .4 . Was the water district in compliance with applicable bond resolutions, with the general or special legis- lation under which the district was created and with the specific statutes excerpted and included in the Legal Compliance Guidelines in Section 70-03-1 of the Water District Accounting Manual? / Any exceptions noted during the course of our examina- tion of the financial statements are described in the management letter or notes to the financial statements. 15. Other comments of the Auditor: None • • ----''''.11111111.1.111/11/1111.11111.1"." Schedule P HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 QUESTIONNAIRE TO BE COMPLETED BY THE AUDITORS 101 March 31, 1982 YES NO 1. At the time that you were engaged by the Board of Directors of the above-named water district to per- form this audit, were copies of the Annual Audit Report Requirements and the Water District Account- ing Manual made available to you? X 2. The Water District Accounting Manual prescribes accounting methods and policies. After taking these into consideration, did the local water district: a. Maintain a proper classification of expendi- tures and revenues? X b. Record expenditures and revenues according to GAAP and consistent with the type of account- ing system utilized? X c. Maintain the double entry system of accounting? X d. Keep a general ledger in accordance with uniform " • classification of general ledger accounts pre- scribed in Water District Accounting Manual? X e. Adhere to other provisions of Water District Accounting Manual? X 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 4. Did you indentify, during the course of your examina- tion 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 If Yes is checked for question 4. , have these topics been discussed in a management letter to the water district ' s Board of Directors? X 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 Schedule P page 2 YES NO 6. Did the water district: a. Use the capital projects fund and debt service fund only for purposes authorized by the Board of Directors of the water district and/or within the provisions of applicable bond resolutions? X b. Properly escrow the required amount of cash as prescribed by the Texas Water Commission or dis- burse the escrowed cash according to the terms prescribed by the Texas Water Commission? N/A c. Do business only with firms or corporations in which members of the Board of Directors had no pecuniary interest? X d. Observe the conditions for obtaining grants, gifts, etc. , or observe agreements with governmental agencies for the purpose of securing funds or services? N/A e. Have a contract for Social Security coverage for its employees with the Texas Employees Retirement System? X T f. Make remittances of Social Security taxes accord- '.. ing to the terms of the contract for Social Security coverage with Social Security Division of the Texas Employees Retirement System? N/A g. Deposit receipts to the proper funds kept by the approved depository bank? X h. Draw checks only on funds approved by the Board of Directors and signed by authorized personnel? X 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 atten- tion during your examination, for strengthening in- ternal accounting controls and improving administra- tive efficiency and procedures? X a. Were your recommendations explained to and dis- cussed with administrative officials of the water district? X b. The date of your most recent management letter was June 15, 1982. Schedule P page 3 YES NO - c. Is there evidence indicating that previous year (s) recommendations have been or are being implemented? X d. Has a copy of the management letter been filed with the Texas Department of Water Resources? X 8. The Texas Water Code makes specific provisions relating to security provided by depository banks. After con- sideration of the applicable laws pertaining to the specific water district, did the depository bank provide adequate security of the correct type? Please indicate for each depository: See page 4 9. The water district ' s taxes were collected by (check one) : a. An employee of the district b. The county tax assessor-collector c. A city or other tax assessor-collector X 4111 d. More than one of the above 10. Was the tax assessor-collector bonded as required by law? X 11 . What was : a. The tax assessor-collector bonded for? $ 10, 000 b. The greatest amount of the district ' s taxes in the tax assessor-collector ' s possession at any one time? $ 154, 276 c. The frequency of tax receipts deposits with the bonded depository? (check one) (1) Daily (2) Weekly X, (3) Monthly *Deposits made montly after substanially all current taxes are collected. d. The percent of the assessed vaulation to fair rim* market value? 100% HARRIS COUNT' • Schedule P page 4 University Humble Fannin ;avings Assoc. National Bank Bank Houston, Houston, Houston, Texas Texas Texas a. Name of depository bank or savii b. Amount of FDIC or FSLIC coverage demand deposits $100, 000 $100, 000 $100, 000 time or savings deposits 100, 000 100,000 100, 000 c. Cash balance at year end - demand deposits - - 141 time or savings deposits 137, 601 122,094 - d. Amount of bond or par value of ; pledged as of year end none 41, 400 52, 000 required e. Was security adequate at year er according to criteria enumerat yes yes yes f. Largest cash balance amounted tc demand deposits - - 202, 454 time deposits or savings depot 137, 601 122, 094IF - g. Date of largest cash balance 3/31/82 3/31/82 5/20/81 h. Amount of bond or par value of pledged at time of largest ba] 41, 400 52,000 - i. Was security adequate at date of according to criteria enumerat yes yes yes Note: By adoption of the Bond C bonds issued by the District, t1 bondholders the net revenues frc and the taxes levied by the Dist of the FDIC Rules and Regulatior. Public Bond Issues. Where ar of a public unit has custody law or under the bond indentu to the holders of bonds issue deposit of such funds in an i to be a deposit by a trustee bondholders are pro rata bene beneficial interest shall be Schedule Q CERTIFICATE OF THE BOARD OF DIRECTORS HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 We, the undersigned, do hereby certify that the audit report of the above named Water District for the fiscal year ended March 31, 1982 was received by the Board gf Directors on the day of .1-ey , 1982 and was reviewed and approved; t a meetin of the Board of Directors of the Water District on theA4 day of 1982. lir / gl -% Signature of Boa d Secretary Signa e of Boa President r Schedule P page 5 YES NO 411 12. We (check one) : a. Actually examined the records of the tax assessor collector. X b. Received written confirmation for the tax data from the tax assessor-collector. c. Accepted tax data furnished by the district ' s administrative offices. 13. As a result, were local tax revenues (including delinquent taxes and interest and penalties on taxes) properly separated for debt service? X 14. Was the water district in compliance with applicable bond resolutions, with the general or special legis- lation under which the district was created and with the specific statutes excerpted and included in the Legal Compliance Guidelines in Section 70-03-1 of the Water District Accounting Manual? X Any exceptions noted during the course of our examina- tion of the financial statements are described in the management letter or notes to the financial statements. 15. Other comments of the Auditor : None r • Schedule Q CERTIFICATE OF THE BOARD OF DIRECTORS HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 We, the undersigned, do hereby certify that the audit report of the above named Water District for the fiscal year ended March 31, 1982 was received by the Board gf Directors on the �c day of - , 1982 and was reviewed and approved; t a meetin. of the Board of Directors of the Water District on theA014 day of . 1982. / / e Signature of Boa d Secretary Signs a of Boa President