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HomeMy WebLinkAbout1983 03 31 Single Audit Report - Harris county water control and improvement district No.108 • VVHITTINGTON, MAY, GEORGE & Co. w CERTIFIED PUBLIC ACCOUNTANTS ONE WESTHEIMER PLAZA SUITE 555 (5718 WESTHEIMER) HOUSTON. TEXAS 77057 (713) 977-2955 June 10, 1983 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, 1983, and the related statement of combined revenues, expenditures and changes in fund balances - all governmental fund types, for the year then ended. Our examination was made in accord- ance 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, 1983, 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. • Attii7V-e-vt_y_ 01 . „^ r 1 4 HARRIS COUNTY WATER CONTROL AND IMPROVEME! COMBINED BALANCE SHEET - ALL FUND TYPES March 31, 1983 Totals Govern (Memorandum Only) March 31, March 31, General Fun( 1983 1982 ASSETS Cash $ 74, 207 82, 826 $ 70, 609 Time deposits 160, 812 426, 725 383, 926 Receivables (net of allowances for uncollectibles) - Accounts 32 , 754 32, 754 34, 743 Taxes - 22, 900 21, 109 Accrued interest 501 1, 403 1, 437 Due from other funds - - 935 Prepaid expenses 1, 302 1, 302 863 Land - 1, 675 1, 675 Water system - 716, 827 525, 426 Sewage system - 734, 252 734, 252 Drainage system - 562, 735 562, 735 Engineering costs - 174, 159 174, 159 Construction in progress - 9, 244 190, 460 Amount available in Debt Service Fund 198, 682 182, 703 Amount to be provided for retirement of long-term debt - 2, 416, 318 2, 497, 297 Total assets $269, 576 5, 381, 802 $5, 382, 329 LIABILITIES AND FUND EQUITY Liabilities - Accounts payable $ 20, 661 23, 511 $ 27, 478 Contracts payable - retained percentage - - 18, 376 Due to other funds - - 935 Refundable deposits 11, 097 11, 097 8, 661 General obligation bonds payable - 2, 615, 000 2, 680, 000 Total liabilities $ 31, 758 2, 649, 608 $2, 735, 450 Fund equity - Investment in general fixed assets 2, 198, 892 $2, 188, 707 Fund balances - Reserve account - Series 1971 Bonds 77, 193 73, 550 Designated for debt service 144, 995 131, 694 Undesignated $237 , 818 311, 114 252, 928 Total fund equity 237 , 818 2, 732, 194 2, 646, 879 Total liabilities and fund equity $269, 576 3, 381, 802 $5, 382, 329 financial 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, 1983 Irk Totals Governmental Fund Types (Memorandum Only) Capital Year Ended Debt Service Projects March 31, March 31, General Fund Fund Fund 1983 1982 Revenues - Water and sewer services $285,406 $285,406 $276,461 Taxes collected - $265,462 265,462 261,133 Penalties and interest 24,092 22,592 $ 9,389 56,073 76,753 Miscellaneous revenues 2,522 - - 2,522 4,663 Tap connection fees 36,600 - - 36,600 - Total revenues 348,620 288,054 9, 389 646,063 619,010 Expenditures - Current: Purchased sewer services $134,217 $134,217 $129,089 Contracted services 43,689 $ 7,200 50,889 46, 693 Professional fees 17,253 - 17,253 14,408 Utilities 24,681 - 24,681 18,159 Repairs and maintenance 57,145 - 57, 145 39,830 Other operating expenses 12,653 - 12,653 10, 473 Miscellaneous - 1,877 1,877 1,797 Capital outlay - - $ 10,185 10,185 190,460 Bond issue costs - - - - 15,120 Property assessment expense - 3,062 - 3,062 - Debt Service Principal payments _ 65,000 _ 65,000 65,000 Interest paid 195,762 195,762 199,935 Total expenditures 289,638 272,901 10,185 572,724 730,964 Excess of revenues over (under) expenditures 58,982 15,153 (796) 73,339 (111,954) Other financing sources (uses) - Proceeds of general obligation bonds - 200,002 Operating transfers in - 73, 827 Operating transfers out - (73,827) Increase/(decrease) in uncollected taxes 1,791 1,791 (864) Total financing sources (uses) - 1,791 - 1,791 199,138 Excess of revenues and other sources over (under) expenditures and other uses 58,982 16,944 (796) 75,130 87,184 Fund balances, March 31, 1982 178,836 205,244 74,092 458,172 370,988 Fund balances, March 31, 1983 $237,818 $222,188 $ 73,296 $533,302 $458,172 See notes to financial statements 41,114 Ow HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 41 COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND For The Fiscal Year Ended March 31, 1983 General Fund Variance - Favorable Budget Actual (Unfavorable) Revenues - Water and sewer services $287, 406 $285, 406 $ ( 2, 000) Penalties and interest 23, 840 24, 092 252 Miscellaneous revenues 729 2, 522 1, 793 Tap connection fees - 36, 600 36, 600 Total revenues 311, 975 348, 620 36, 645 Expenditures - Current: Purchased sewer services 135, 318 134, 217 1, 101 Contracted services 42, 420 43, 689 ( 1, 269) IP Professional fees 15, 101 17, 253 ( 2, 152) Utilities 21, 257 24, 681 ( 3, 424) Repairs and maintenance 83, 990 57, 145 26, 845 Other operating expenses 11, 020 12, 653 ( 1, 633) Total expenditures 309 , 106 289, 638 19, 468 Excess of revenues over (under) expenditures 2, 869 58, 982 56, 113 Fund balance, March 31, 1982 178, 836 178, 836 - Fund balance, March 31, 1983 $181, 705 $237 , 818 $ 56, 113 See notes to financial statements HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 NOTES TO FINANCIAL STATEMENTS March 31, 1983 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 com- mission beginning January 1, 1975; the District ' s accounts are gener- ally maintained in accordance with the Manual. 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 amount of taxes receivable is recorded and included in the fund balance of the Debt Service Fund. The basic finan- cial statements of the District conform to the requirements of State- ment 1 of the National Council of Governmental Accounting and in com- pliance with the directives of the Texas Department of Water Resources. 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. Annual budgets are prepared for the General Fund and adopted by the District ' s Board of Directors for management guidance of the District ' s operations . Actual net revenues exceeded budgeted net revenues by $56, 113 representing principally the favorable variance in total revenues of $36, 645 and the favorable variance in total expenditures of $19, 468 . The increase in revenues resulted from tap connection fees received for connections to a major apartment complex which was not budgeted because the complex has been under construction for an extended period of time and the point at which tap connections would be made was not foreseeable; completion of the project and billings to the new connections are not expected to occur until late in the year. Actual expenditures fell short of budgeted expenses mainly because of the favorable variance of $26, 845 in maintenance and repair expenses . Sections of the District ' s water system are beginning to age and the expectations of increased maintenance work did not materialize. Note 3 : Capital Projects - The District established a Capital Projects Fund in 1981 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 prior year of $200, 002 were also deposited into the Fund. The principal purpose of the Bond issue was to pay for the costs of the water system expansion program, which was completed during the current year at a total cost of $191, 401. The District began prelim- inary work towards the construction of a proposed office building estimated to cost $95, 000. 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 reasonable 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 - 1971A - 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 4 further experience demonstrates the necessity to again levy taxes to avoid default in payments of the District ' s obligations as they may mature. Series 1981 Bonds: The Bond Orders for the Series 1981 bonds require the establish- ment 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 grin- . cipal requirements are to be deposited in equal monthly installments. At March 31, 1983 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 pur- poses of retirement or refunding, or both, at par plus accrued inter- est. 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 there- after. Note 7 : Engineers report - The Bond Orders of the Series 1981 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 indepen- dent engineer inspected the water system and reported favorably on its condition. 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. ti 01 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 01 are charged $8 . 00 for each unit. Five year summary of customers at March 31 : 1983 1982 1981 1980 1979 1, 159 1, 146 1, 158 1, 158 1, 158 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 wits in all material respects. 0 WHITTINGTON, MAY, GEORGE & CO. CERTIFIED PUBLIC ACCOUNTANTS ONE WESTHEIMER PLAZA SUITE 555 (5718 WESTHEIMER) HOUSTON. TEXAS 77057 (713) 977-2955 June 10, 1983 The Board of Directors Harris County Water Control and Improvement District No. 108 16605 Bougainvillea 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, 1983, 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 . . (1611Altlij(#117111.6 r 1 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 March 31, 1983 de X D. Notes Required by the Water District Accounting Manual X E. Analysis of Changes in Cash and Temporary Investments X F. General Lonq-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 0111 X J. Analysis of Organizational Costs 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 0. Board Members, Key Personnel and Consultants X P. Questionnaire Completed by 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, 1983 Debt Capital Totals General Service Projects (Memorandum Fund Fund Fund Only) Sources of cash and temporary investments - Cash receipts from revenues $350, 708 $287, 945 $ 9, 433 $648, 086 Due from Construction Fund 935 - 935 Refundable deposits 2, 436 2, 436 Total cash and temporary investments provided 353, 144 288, 880 9, 433 651, 457 Application of cash and temporary investments - Cash disbursed for Current expenditures 296, 129 12, 139 308, 268 Capital outlay 26, 476 26, 476 Debt service 260, 762 260, 762 Due to Debt Service Fund 935 935 f Total cash and temporary investments applied 296, 129 272, 901 27, 411 596, 441 Increase (decrease) in cash and temporary investments 57, 015 15, 979 (17, 978) 55, 016 Cash and temporary investment balances - At the beginning of the year 178, 004 182, 703 93, 828 454, 535 At the end of year $235, 019 $198, 682 $ 75, 850 $509, 551 See notes to financial statements f Schedule F HARRIS COUNTY WATER CONTROL AND IMF GENERAL LONG-TERM DEBT SERVICE REQU March 31, 19 Series 1970-A Series 1981 Interest Interest Principal Due Fncipal Due Total Fiscal Due April 1, Due April 1, Annual Years October 1 October 1 Total ril 1 October 1 Total Requirements 1984 $ 15,000 $ 12, 498 $ 27,498 $ - $ 5, 331 $ 5,331 $ 110, 716 1985 15, 000 23,720 38,720 5,000 10,522 15, 522 267, 829 1986 15, 000 22, 445 37, 445 5,000 10,242 15, 242 261,900 1987 15, 000 21,170 36, 170 5,000 9,962 14, 962 265, 620 1988 15, 000 19,970 34, 970 0, 000 9, 542 19, 542 268, 730 1989 15,000 18,770 33, 770 0, 000 8,982 18, 982 266, 327 e 1990 15, 000 17, 570 32, 570 0,000 8,422 18,422 268, 305 1991 15, 000 16, 370 31, 370 0, 000 7,862 17, 862 264, 675 1992 15,000 15,110 30,110 0,000 7, 302 17, 302 265, 437 1993 15, 000 13,850 28, 850 5, 000 6, 602 21, 602 265, 490 1994 20,000 12, 590 32, 590 5, 000 5, 762 20,762 269,752 1995 20,000 10,910 30,910 5,000 4, 922 19,922 267,769 1996 20,000 9,230 29, 230 5, 000 4,082 19, 082 265,037 1997 20,000 7, 550 27, 550 0,000 3,102 23, 102 276,077 1998 20,000 5, 870 25, 870 0, 000 1,977 21, 977 275,716 1999 20, 000 4, 190 24, 190 5,000 706 25, 706 283,902 2000 20,000 2, 510 22, 510 - - 265,985 2001 20, 000 830 20,830 - - - 258, 455 Totals $310,000 $235, 153 $545,153 ;.0,000 $105, 320 $295, 320 $4, 667,722 See notes to financial statements Cash and temporary investment ba] Debt Service Fund ; fi HARRIS COUNTY WATER CONTROL AND IMPRO ANALYSIS OF CHANGES IN GENERAL For The Fiscal Year Ended Ma 1970A Interest rate 8. 00 to 7 8. 5% Dates interest payable 4/1 - 10/1 4/ Bonds outstanding at beginning of the year $320, 000 Retirements of principal 10, 000 Bonds outstanding at end of the year $310, 000 Retirements of interest $ 25, 420 ti 44 Paying agents - Series 1970A, Allied Bank of Texas, Houstor 1971 and First National Bank, Denver, 1972 Series 1971A Allied Bank of Texas , Houstor Series 1981 Bonds voted: $3, 000, 000 - Bonds approved: Schedule H 4 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 SCHEDULE OF TEMPORARY INVESTMENTS March 13, 1983 Interest Maturity Face Accrued Rate Date Amount Interest General Fund Time deposits - No. 23353 8 . 625% 4/18/83 $160, 812 $ 501 Debt Service Fund - Time deposits - No. 17-0188532 9 . 25% 4/15/83 100, 000 385 No. 19243491-8 8. 50% 4/18/83 6, 027 14 No. 45-100044-7 8.75% 4/20/83 87, 418 207 Total Debt Service Fund 193, 445 606 Capital Projects Fund - Time deposits - No. 51-040067-1 9 . 375% 4/14/83 59, 886 265 No. 45-100044-7 8 .75% 4/20/83 12, 582 31 72, 468 296 TOTAL - ALL FUNDS $426, 725 $1, 403 See notes to financial statements Schedule I HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 411* ANALYSIS OF TAXES RECEIVABLE For The Fiscal Year Ended March 31, 1983 Taxes receivable at the beginning of the year $ 21, 109 1982 Original tax roll 267, 253 Total to be accounted for 288, 362 Tax Collections - Current year 256, 286 Prior years 9, 176 265, 462 Taxes receivable at the end of the year $ 22, 900 Taxes receivable by years - 1977 and prior $ 479 1978 396 1979 3, 429 1980 3, 469 1981 4, 160 1982 10, 967 $ 22, 900 Assessed Valuations Summary (000 omitted) Tax rate Personal per $100 Land Improvements Property Total Valuation 1982 $4, 322 $26, 636 $923 $31, 881 84G 1981 4 , 299 26, 621 871 31, 791 82 1980 4, 258 26, 419 776 31, 453 82G 1979 4, 258 26, 414 746 31, 418 82c 1978 4, 258 26, 022 434 30, 714 80G Tax collection year - From October 1, 1982 to September 30, 1983 Percent of assessed valuation to fair market value 100.0% Percent of current taxes collected to current tax levied 95.9% Percent of current and delinquent taxes collected to current and delinquent taxes outstanding at the beginning of the tax year 92.1% See notes to financial statements Schedule J HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 ANALYSIS OF CHANGES IN DISTRICT ORGANIZATIONAL COSTS For The Fiscal Year Ended March 31, 1983 Balances March 31 , 1982 and 1983 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 - Capital Projects Fund $157, 652 Debt Service Fund 113, 160 Total $270, 812 See notes to financial statements 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, 1983 Balances Balances March 31, Addi- Deduc- March 31, 1982 tions tions 1983 Land $ 1, 675 $ - - $ 1, 675 Water system 525, 426 191, 401 - 716, 827 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, 460 941 $191, 401 Office building - 9, 244 - 9, 244 Total $2 , 188, 707 $201, 586 $191, 401 $2, 198, 892 Amounts provided by - 11/1 Capital Projects Fund $2, 072, 618 $ 10, 185 $2, 082, 803 General Operating Fund 116, 089 116, 089 Total amounts provided $2, 188, 707 $ 10, 185 - $2, 198, 892 See notes to financial statements Schedule M HARRIS COUNTY WATER COI COMPARATIVE SCHEI • By Fiscal Years - Revel Fund Revenues 1983 19881 1980 1979 General Fund Revenues - Water and sewer services $285, 406 $276, 4 . 7 89 .9 76. 4 Penalties and interest 24, 092 24, 4.1 6. 2 4. 3 Miscellaneous revenues 2, 522 4, ( . 2 3.9 .9 EPA reimbursement grant - - - - 18.4 Tap connection fees 36, 600 - - - - 348, 620 305, 1. 0 100. 0 100 .0 General Fund Expenditures - Purchased sewer services 134, 217 129, 0 . 3 18. 8 24 . 8 Contracted services 43, 689 41, L . 8 15. 0 15 . 0 Professional fees 17 , 253 14, 1 . 5 10. 1 5 . 8 Utilities 24, 681 18, 3 . 6 5. 4 3 .6 Repairs and maintenance 57, 145 39, 8 . 9 11 . 0 25 . 7 Recurring operating expenses 12, 653 10, 4 .9 4 .9 4 . 0 289, 638 253, 8 . 0 85.2 78.9 General Fund Revenues over Expenses $ 58, 982 $ 51, 5. 0 14. 8 21 .1 Debt Service Fund Revenues - 44 Tax revenues $265, 462 $261 , 2 . 5 93 . 5 95. 0 Penalties and interest 22, 592 25, 1 . 5 6. 5 5 . 0 288, 054 286, e .0 100. 0 100 .0 Debt Service Fund Expenditures - Contracted services 7, 200 4 , E . 7 1. 8 1 . 9 Property assessment fees 3, 062 - - - - Miscellaneous expense 1, 877 1, i . 6 . 3 . 4 Debt services Interest 195, 762 199 , 9 . 5 75 .9 79 . 0 Principal 65, 000 65, C . 7 21. 1 17 . 6 272, 901 271 , 2 . 5 99 .1 98.9 Debt Service Fund Revenues over Expenses $ 15, 153 $ 15, 2 . 5 . 9 1 . 1 Average annual bond principal and interest $259 , 255 $259 , 3 Coverage: Net General Fund revenue plus net tax revenues 1. 20 1 . 1 Average annual unpaid bond principal and interest 410 Number of customers 1 , 159 1 , 1 Total water pumped into the system 126. 2 121 Total water billed to customers 116. 5 115 (in millions of gallons) Schedule N HARRIS COUNTY 4" Type of Fro] Company Co-Insurance Employee honesty, etc. : Tax Assessor and collector 1/01, Stock None Contract employee 1/25, Stock None Fire, Lightning, extended coverage, vandalism and i,, malicious mischief: Water plants and sewage treatment plants 11/22, Stock 80% General Liability: Bodily injury, aggregate 11/22, Stock None Property damage, aggregate 11/22 Auto liability, non-owned cars : Bodily injury Property damage Flood insurance: Comfort station, control house and contents 9/24 Faithful Performance Schedule Bonds (5) Directors 2/15 Stock None inancial statements e OTHER SUPPLEMENTAL INFORMATION (Not Subjected to Audit Procedures) Schedule 0 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS March 31, 1983 Mailing address : 16605 Bougainvillea, 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 Gina Runnels 4/1/85 Per Vice 16731 David Glen Diem President Friendswood, Texas Mary B. Jones 4/1/85 Per Secretary P.O. Box 941 Diem Friendswood, Texas David T. Nolan 4/1/84 Per Member 3832 Laura Leigh Lane Diem Friendswood, Texas A Harvey Hillman, Jr. 4/1/85 Per Member 17150 Barcelona Drive Diem Friendswood, Texas Date Hired Fees Paid Key Personnel - District Tax Assessor-Collector Alta Carbone 4/19/70 $7, 200 Friendswood, Texas Legal Counsel Smith & Murdaugh 1200 Travis Street Houston, Texas 1/19/70 $6, 244 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 HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108 10 QUESTIONNAIRE TO BE COMPLETED BY THE AUDITORS March 31, 1983 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 4P 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 4011 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? X 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 10, 1983 . • 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 the 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 *I` 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? $ 84, 303 c. The frequency of tax receipts deposits with the bonded depository? (check one) (1) Daily (2) Weekly X (3) Monthly *Deposits made monthly after substanially all current taxes are collected. d. The percent of the assessed valuation to fair market value? 100% Schedule P page 4 HARRIS COUNTY WATER CONTROL STATEMENT RELATIl March Mainland Commonwealth Ameritrust Savings Savings Savings Assoc. Assoc. Assoc. a. Name of depository bank b. Amount of FDIC or FSLIC coverage $100, 000 $100, 000 $100, 000 c. Amount of bond or other security pledged as of the end of the fiscal year - - - d. Largest cash balance $ 61, 809 $100, 000 $100, 000 e. Date of largest cash balance 2/11/83 3/16/83 1/19/82 f. Amount of bond or security pledged at the time of the largest cash balance (excluding FDIC or FSLIC coverage) - - Note: By adoption of the Bond Order of bonds issued by the District, the to the bondholders the net revenues the system and the taxes levied by t 330.8 par. (b) of the FDIC Rules and Public Bond Issues. Where an c employee of a public unit has c funds which by law or under the are required to be paid to the issued by the public unit, any funds in an insured bank shall trustee of trust funds of whici are pro rata beneficiaries, an( ficial interest shall be separ< $40, 000. • Schedule P page 5 YES NO 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 services? 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 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, 1983 was received by the Board of Directors on the day of , 1983 and was reviewed and approved; disapproved at a meeting of the Board of Directors of the Water District on the day of 1983. 4111010 Signature of Board Secretary Signature of Board President