HomeMy WebLinkAbout1984 03 31 Single Audit Report - Harris county water control and improvement district No.108 VAN SAHAKIAN
Certified Public Accountant 2400 Lazy Hollow Dr., Suite 139
Houston,Texas 77063
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June 14 , 1984
To the Board of Directors of
Harris County Water Control and Improvement District No. 108
I 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 , 1984 , and the related statement of
combined revenues , expenditures and changes in fund balances - all
governmental fund types , for the year then ended. My 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 I considered necessary in the
circumstances.
In my opinion, the statements referred to above present
fairly the financial position of Harris County Water Control and
Improvement District No. 108 at March 31 , 1984 , and the results of
its operations for the year then ended, in conformity with generally
40 accepted accounting principles, applied on a basis consistent with
that of the preceding year.
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HARRIS COUNTY WAT
COMBINED BALANCE
0 Totals
Governme (Memorandum Only)
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'4arch 31, March 31,
General Fun 1984 1983
a ASSETS
Cash $ 38, 723 46, 490 $ 82, 826
Time deposits 252, 963 465, 136 426, 725
Receivables (net of allowances
for uncollectibles) -
li Accounts 34, 393 34, 393 32, 754
Taxes - 26, 595 22, 900
Accrued interest 608 936 1,403
Prepaid expenses 2, 348 2, 348 1, 302
Land - 1, 675 1, 675
Water system - 716, 827 716, 827
Sewage system - 734, 252 734, 252
Drainage system - 562, 735 562, 735
Engineering costs - 174, 159 174, 159
Office building - 107, 178 -
Furniture and fixtures - 7, 346 -
Construction in progress - 7, 669 9, 244
.4 Amount available in Debt Service Fund - 202, 561 198, 682
Amount to be provided for retirement
of long-term debt - :, 332,439 2, 416, 318
Total assets $329,035 ,,422, 739 $5, 381, 802
LIABILITIES AND FUND EQUITY
Liabilities -
Accounts payable $ 25, 721 30, 101 $ 23, 511
Refundable deposits 12, 357 12, 357 11,097
General obligation bonds payable - , 535, 000 2, 615,000
Total liabilities 38, 078 , 577, 458 2, 649,608
Fund equity -
Investment in general fixed assets - , 311,841 2, 198,892
Fund balances -
Al Reserve account - Series 1971 Bonds - 75, 450 77, 193
Designated for debt service •- 153, 934 144, 995
Undesignated 290, 957 304, 056 311, 114
Total fund equity 290,957 , 845, 281 2, 732, 194
0 Total liabilities and
fund equity $329,035 , 422, 739 $5, 381, 802
Einancial statements
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HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUND TYPES
AI For the Fiscal Year Ended March 31, 1984
Totals
Governmental Fund Types (Memorandum Only)
Debt Capital Year Ended
Service Projects March 31, March 31,
General Fund Fund Fund 1984 1983
Revenues -
Water and sewer services $291,630 $291,630 $285,406
Taxes collected $266,759 266,759 265,462
Penalties and interest 25,727 20,364 $ 2,752 48,843 56,073
41 Miscellaneous revenues 542 542 2,522
Tap connection fees (net) 76,411 76,411 36,600
Total revenues 394,310 287,123 2,752 684,185 646,063
Expenditures -
Current:
41 Purchased sewer services 136,354 136,354 134,217
Contracted services 47,535 7,958 55,493 50,889
Professional fees 16,554 16,554 17,253
Utilities 26,917 26,917 24,681
Repairs and maintenance 41,492 41,492 57,145
Other operating expenses 22,319 22,319 12,653
Miscellaneous 652 652 1,877
41 Property assessment expense 4,217 4,217 3,062
Capital outlay 112,949 112,949 10,185
Debt service -
Principal payments 80,000 80,000 65,000
Interest paid 190,795 190,795 195,762
Total expenditures 291,171 283,622 112,949 687,742 572,724
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Excess of revenues over
(under) expenditures 103,139 3,501 <110,197> <3,557> 73,339
Other financing sources (uses) -
Operating transfers in 50,000 50,000
Operating transfers out <50,000> <50,000>
Increase/decrease in
41 uncollected taxes 3,695 3,695 1,791
Total other financing
sources (uses) <50,000> 3,695 50,000 3,695 1,791
Excess of revenues and
other sources over (under)
4k expenditures and other uses 53,139 7,196 <60,197> 138 75,130
Fund balances, March 31, 1983 237,818 222,188 73,296 533,302 458,172
Fund balances, March 31, 1984 $290,957 $229,384 $ 13,099 $533,440 $533,302
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See notes to financial statements
HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
For The Fiscal Year Ended March 31, 1984
General Fund
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Variance -
Favorable
Budget Actual (Unfavorable)
IIRevenues -
Water and sewer services $319, 320 $291, 630 $<27, 690>
Penalties and interest 26, 100 25, 727 < 373>
Miscellaneous revenues 975 542 < 433>
Tap connection fees (net) 5, 380 76, 411 71 ,031
41 Total revenues 351, 775 394, 310 42, 535
Expenditures -
Current:
Purchased sewer services 151,875 136, 354 15, 521
lb Contracted services 45, 600 47, 535 < 1,935>
Professional fees 17, 800 16, 554 1,246
Utilities 27, 000 26, 917 83
Repairs and maintenance 69, 600 41, 492 28, 108
Other operating expenses 17, 775 22, 319 < 4, 544>
Total expenditures 329, 650 291, 171 38,479
Excess of revenues over
expenditures 22, 125 103, 139 81, 014
Other financing uses -
411 Operating transfers out - <50, 000> <50,000>
Excess of revenues over
expenditures and other
uses 22, 125 53, 139 31,014
Fund balance, March 31, 1983 237, 818 237, 818 -
Fund balance, March 31, 1984 $259, 943 $290, 957 $ 31,014
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See notes to financial statements
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HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
NOTES TO FINANCIAL STATEMENTS
March 31, 1984
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 District ' s accounts
are generally 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 financial statements of the District
conform to the requirements of Statement 1 of the National Council
of Governmental Accounting and in compliance 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 operating revenues exceeded
w budgeted net revenues by $81, 014 representing principally the
combination of the favorable variance in total revenues of $42, 535
and the favorable variance in total expenditures of $38, 479. The
increase in revenues was the result of substantial revenue for
tap connections for new construction of a (1 ) 122 unit apartment
complex, (2) 234 unit condominium project, and (3) 118, 000 square
foot shopping center. Projecting the timing and the amount of
new construction revenue is generally unforseeable and, according-
ly, variances in such projections are expected. Water and sewer
service revenues decreased by reason of reduced customer usage
with a commensurate decrease in purchased sewer service costs.
In addition to decreased costs of sewer service, actual repairs
* and maintenance expenses fell short of budgeted expenses because
expectations of increased maintenance costs of the system, as the
system ages, did not materialize.
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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 1982 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 prior year at a total cost of $191, 401. During the
current year the District transferred $50, 000 of operating funds
to the Capital Projects Fund and completed construction and
outfitting of an office building at a total cost of $114, 524. In
addition the District contracted for lift station rehabilitation
work estimated to cost $81, 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 deduc-
tion 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 suffi-
cient 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 interest and principal
of the District' s obligations maturing in that year, the Dis-
trict' s annual tax levies may be lowered to produce not less than
25% of the bond maturities for each succeeding year. Whenever
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 payments of the District 's
obligations as they may mature.
Series 1971 Bonds:
The Bond Orders for the Series 1971 bonds require the estab-
lishment 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 prin-
cipal and interest until said fund shall consist of a sum equal
to the total principal and interest requirements for the next
A succeeding year; current interest and principal requirements are
to be deposited in equal monthly installments. At March 31, 1984
the Reserve Account contained the amounts required by the Bond
Orders.
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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 purposes 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 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 inde-
pendent 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
contract the District constructed lines and facilities to trans-
port waste on the City ' s sanitary sewer trunk line facilities.
Under this contract the District is entitled to have up to 460, 000
gallons per day treated by the City with the City being respon-
sible 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. The contract stipulates that the sewer
service charge to the District 's customers is to be made on the
same basis used by the City of Friendswood to charge its customers.
Accordingly, the District charged its customers based on the
actual water usage each month, as did the City, and remitted 85%
of the revenue from those charges to the City. The District
recently learned that in 1980 the City changed the basis used to
charge its customers to a base of the average water usage of the
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lowest four of five winter months; the average so determined is
then used for the entire fiscal year beginning April 1. The
District has determined that they have charged their customers
usage charges in excess of those charged by the City and as a
result have overpaid the City for sewer services. Accordingly,
the District changed its basis for sewer services charges begin-
ning with April 1, 1984 to conform to the basis used by the City
and is presently compiling a statement of overcharges retroactive
to 1980, and plans to claim a refund from the City in an amount
estimated to aggregate $50, 000.
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
1111
*Master metered townhouses and apartment projects
are based on first 5, 000 gallons of water used
times the number of units.
Sewer Service
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Residential and commercial:
First 3, 000 gallons of water used (minimum bill)* $7.00
Each 1,000 ballons of water used thereafter . 90
*Master metered townhouses and apartment projects
A are charged $8.00 for each unit.
Five year summary of customers at March 31:
1984 1983 1982 1981 1980
A 1, 085 1, 097 1, 146 1, 158 1, 158
Note 10: Insurance coverages -
The Bond Orders require that so long as any of the bonds are
outstanding, 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.
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VAN SAHAKIAN
Certified Public Accountant 2400 Lazy Hollow Dr., Suite 139
Houston,Texas 77063
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June 14 1984
The Board of Directors
41 Harris County Water Control and
Improvement District No. 108
Friendswood, TX 77546
In my opinion, the accompanying information is stated
fairly in all material respects in relation to the combined finan-
cial statements taken as a whole, of Harris County Water Control
and Improvement District No. 108 for the year ended March 31 , 1984,
which are covered by my 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 oper-
41
ations. My examination was made primarily for the purpose of form-
ing 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 I considered necessary in the circumstances.
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HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
March 31, 1984
X D. Notes Required by the Water District Accounting Manual
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
X K. Analysis of Changes in General Fixed Assets
L. Schedule of Notes Payable
41 X M. Comparative Schedule of Revenues and Expenditures - Five Years
X N. Insurance Coverage
X O. Board Members, Key Personnel and Consultants
X P. Questionnaire Completed by the Auditor
X Q. Certificate of the Board of Directors
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'# 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, 1984
Debt Capital Totals
General Service Projects (Memorandum
Fund Fund Fund Only)
Sources of cash and temporary
investments -
Cash receipts from revenues $392, 563 $287, 501 $ 2, 947 $683, 011
Cash transfers from other
funds 50, 000 50, 000
Refundable deposits 1, 259 1, 259
Total cash and temporary
investments provided 393, 822 287, 501 52, 947 734, 270
Application of cash and
temporary investments -
Cash disbursed for •
Current expenditures 287, 155 12, 827 299,982
Capital outlay 111,418 111,418
Debt service 270, 795 270, 795
Cash transfers to other
funds 50, 000 50,000
111 Total cash and temporary
investments applied 337, 155 283, 622 111,418 732, 195
Increase (decrease) in
cash and temporary
investments 56, 667 3,879 <58, 471> 2, 075
Cash and temporary investment
balances -
At the beginning of the year 235,019 198, 682 75, 850 509, 551
4111 At the end of year $291, 686 $202, 561 $ 17, 379 $511,626
See notes to financial statements
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Schedule F
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HARRIS COUNTY WATER CONTROL AND IMPROVE
GENERAL LONG-TERM DEBT SERVICE REQUIREN
March 31, 1984
lb Series 1970-A Se Series 1981
Interest ] Interest
Principal Due Principal ipal Due Total
Fiscal Due April 1, Due Pe April 1, Annual
Years October 1 October 1 Total April 1 Cl 1 October 1 Total Requirements
1985 $ 15,000 $ 11,860 $ 26,860 $ - ; $ 5,191 $ 5,191 $ 107,751
1986 15,000 22,445 37,445 15,000 000 10,242 15,242 261,900
44 1984 15,000 21,170 36,170 15,000 000 9,962 14,962 265,620
1988 15,000 19,970 34,970 20,000 000 9,542 19,542 268,730
1989 15,000 18,770 33,770 20,000 000 8,982 18,982 266,327
1990 15,000 17,570 32,570 25,000 000 8,422 18,422 268,305
1991 15,000 16,370 31,370 25,000 000 7,862 17,862 264,675
1992 15,000 15,110 30,110 30,000 000 7,302 17,302 265,437
1993 15,000 13,850 28,850 30,000 000 6,602 21,602 265,490
1994 20,000 12,590 32,590 35,000 000 5,762 20,762 269,752
44 1995 20,000 10,910 30,910 35,000 000 4,922 19,922 267,769
1996 20,000 9,230 29,230 40,000 000 4,082 19,082 265,037
1997 20,000 7,550 27,550 40,000 000 3,102 23,102 276,077
1998 20,000 5,870 25,870 45,000 000 1,977 21,977 275,716
1999 20,000 4,190 24,190 45,000 000 706 25,706 283,902
2000 20,000 2,510 22,510 50,000 - - 265,985
2001 20,000 830 20,830 55,000 - - 258,455
44 TOTALS $295,000 $210,795 $505,795 $525,000 :000 $ 94,658 $279,658 $4,396,928
Cash and temporary investment balances at Ma] See notes to financial statements
Debt Service Fund $202,561
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Schedule G
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HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT
For the Fiscal Year Ended March 31, 1984
Bond Issues
44
Series
1970A 1971 1971A 1972 1981 Totals
Interest rate 8.00 to 7.75% 6.00% to 8.5% 5.60% to
8.5% 7.75% 5.65%
041 Dates interest payable 4/1 - 10/1 4/1 - 10/1 4/1 - 10/1 4/1 - 10/1 4/1 - 10/1 -
Bonds outstanding at
beginning of the year $310,000 $540,000 $1,105,000 $470,000 $190,000 $2,615,000
Retirements of principal 15,000 15,000 35,000 10,000 5,000 80,000
lb Bonds outstanding at end
of the year $295,000 $525,000 $1,070,000 $460,000 $185,000 $2,535,000
Retirements of interest $ 24,358 $ 41,850 $ 82,200 $ 31,725 $ 10,662 $ 190,795
Paying agents -
41 Series 1970A, Allied Bank of Texas, Houston, Texas and
1971 and First National Bank, Denver, Colorado
1972
Series 1971A, Allied Bank of Texas, Houston, Texas
Series 1981
Bonds voted: $3,000,000 - Bonds approved: $3,000,000 - Bonds sold: $3,000,000
7
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Schedule H
HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
SCHEDULE OF TEMPORARY INVESTMENTS
March 31, 1984
Interest Maturity Face Accrued
Rate Date Amount Interest
General Fund
Time deposits -
lb No. 68784 9.8% 4/19/84 $186, 197 $ 608
No. 08-000637-9 10. 5% Open 66, 766
252, 963
Debt Service Fund -
Time deposit -
No. 26759 10. 5% 9/20/84 194,894 228
Capital Projects Fund -
Money-market account -
No. 53-040186-9 9. 51% - 17, 279 100
TOTAL - ALL FUNDS $465, 136 $ 936
See notes to financial statements
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Schedule I
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HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
ANALYSIS OF TAXES RECEIVABLE
For The Fiscal Year Ended March 31, 1984
11
Taxes receivable at the beginning of the year $ 22, 900
1983 Original tax roll 270,454
Total to be accounted for 293, 354
Tax collections -
Current year 261, 443
,* Prior years 5, 316
266, 759
Taxes receivable at the end of the year $ 26, 595
Taxes receivable by years -
41
1978 and prior $ 361
1979 2, 286
1980 3,469
1981 3, 740
1982 7, 728
1983 9,011
$ 26, 595
Assessed Valuations Summary (000 omitted)
Tax rate
Personal per $100
Land Improvements Property Total Valuation
1983 $4, 322 $26, 746 $1, 127 $32, 195 84$
1982 4, 322 26, 636 923 31, 881 84$
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$
411 Tax collection year - From October 1, 1983 to September 30, 1984
Percent of assessed valuation to fair market value 100.0%
Percent of current taxes collected to current tax levied 96. 7%
Percent of current and delinquent taxes collected to
current and delinquent taxes outstanding at the
beginning of the tax year 90.9%
See notes to financial statements
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Schedule J
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HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
ANALYSIS OF CHANGES IN DISTRICT ORGANIZATIONAL COSTS
For The Fiscal Year Ended March 31, 1984
Balances
March 31, 1983
and 1984
Costs during organization and construction -
'b 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
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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, 1984
Balances Balances
March 31, March 31,
1983 Additions Deductions 1984
Land $ 1, 675 $ 1, 675
41 Water system 716,827 716,827
Sewage system 734, 252 734, 252
Drainage system 562, 735 562, 735
Engineering fees 174, 159 174, 159
Office building $107, 178 107, 178
Furniture and fixtures 7, 346 7, 346
41 Construction in progress -
Office building 9, 244 97, 934 $107, 178 -
Lift station
rehabilitation - 7, 669 7,669
$2, 198,892 220, 127 $107, 178 $2, 311,841
Amounts provided by -
Capital Projects Fund $2, 082,803 $ 62, 949 $2, 145, 752
General Operating Fund 116, 089 50, 000 166, 089
e
$2, 198, 892 $112, 949 - $2, 311,841
See notes to financial statements
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Schedule M
lb HARRIS COUNTY WAT:
COMPARATIVE
By Fiscal Ye
Rev)tal Fund Revenues
A
1984 19 1982 1981 1980
General Fund Revenues -
Water and sewer services $291, 630 $285 90.4 94. 7 89.9
Penalties and interest 25, 727 24 8. 1 5.1 6. 2
Miscellaneous revenues 542 2 1 .5 . 2 3.9
,b EPA reimbursement grant - - - -
Tap connection fees 76,411 36 - - -
394, 310 348100.0 100.0 100.0
General Fund Expenditures -
II Purchased sewer services 136, 354 134 42. 2 39. 3 38.8
Contracted services 47, 535 43 13 . 7 14.8 15.0
Professional fees 16, 554 17 4. 7 7.5 10. 1
Utilities 26, 917 24 5.9 5.6 5.4
Repairs and maintenance 41,492 57 13. 3 12.9 11 .0
Recurring operating expenses 22, 319 12 3 .4 4.9 4.9
a ----
291, 171 289 83. 2 85.0 85.2
General Fund Revenues over
Expenses $103, 139 $ 58 16.8 15.0 14.8
,! Debt Service Fund Revenues -
Tax revenues $266, 759 $265 91 .0 92 . 5 93. 5
Penalties and interest 20, 364 22 9.0 7 . 5 6. 5
287, 123 288100.0 100.0 100.0
,# Debt Service Fund Expenditures -
Contracted services 7, 958 7 1 .7 1. 7 1 .8
Property assessment fees 4, 217 3 - - -
Miscellaneous expenses 652 1 .6 .6 . 3
Debt service -
Interest 190, 795 19E 69. 7 70. 5 75.9
a Principal 80,000 6c 22.7 19. 7 21 . 1
283, 622 272 94. 7 92. 5 99. 1
Debt Service Fund Revenues over
Expenses $ 3, 501 $ 1E 5. 3 7. 5 .9
IS
Average annual bond principal
and interest $258,642 $255
Coverage: Net General Fund Revenues
plus net tax revenues 1 . 38 ]
a Average annual unpaid bond
principal and interest
Number of customers 1, 085 ]
Total water pumped into the system 133.4 12(
Total water billed to customers 116. 3 11E
III (in millions of gallons )
Schedule N
HARRIS COUNTY WA1
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'ype of
From :ompany Co-Insurance
Fire, lightning, extended coverage,
vandalism and malicious mischief:
Water plants and sewage treatment
plants 11/22/83 ] Stock 80%
Office building and contents
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General Liability:
Bodily injury, aggregate 11/22/83 ] Stock None
Property damage, aggregate 11/22/83 ]
Auto liability, non-owned cars :
Bodily injury 11/22/83 ]
Property damage 11/22/83 ]
Flood insurance:
0
Comfort station, control house
and contents 9/24/82 5
Faithful Performance Schedule
Bonds (5) Directors 2/15/82 ; Stock None
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Employee honesty, etc. :
Tax assessor and collector 1/10/84 ] Stock None
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financial statements
411
OTHER SUPPLEMENTAL INFORMATION
(Not Subjected to Audit Procedures )
41
41
411
Schedule 0
a
HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS
March 31, 1984
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Mailing address : c/o Mary B. Jones, P.O. Box 194, Friendswood, TX 77546
Board Members
S
Term Annual
Name and Address Expires Salary Title
Margaret K. George 4/1/88 Per President
3960 Laura Leigh Lane Diem
4111 Friendswood, Texas 77546
Gina Runnels 4/1/85 Per Vice
16731 David Glen Diem President
Friendswood, Texas 77546
41 Mary B. Jones 4/1/85 Per Secretary
P. 0. Box 194 Diem
Friendswood, Texas 77546
Harvey Hillmon, Jr. 4/1/85 Per Member
17150 Barcelona Drive Diem
Friendswood, Texas 77546
Jack A. Roberts 4/1/88 Per Member
16919 Oxnard Diem
Friendswood, Texas 77546
S
Date Hired Fees Paid
Key Personnel -
District Tax Assessor-Collector
400 Alta Carbone 4/19/70 $7, 200
P. O. Box 343
Pearland, Texas 77581
Legal Counsel
Smith & Murdaugh 1/19/70 $4,687
1200 Travis Street
Houston, Texas
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
QUESTIONNAIRE TO BE COMPLETED BY THE AUDITORS
March 31, 1984
S YES NO
1. At the time that you were engaged by the Board
of Directors of the above-named water district
to perform this audit, were copies of the Annual
Audit Report Requirements and the Water District
41 Accounting 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:
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a. Maintain a proper classification of
expenditures and revenues? X
b. Record expenditures and revenues according
to GAAP and consistent with the type of
11 accounting system utilized? X
c. Maintain the double entry system of
accounting? X
d. Keep a general ledger in accordance with
41 uniform classification of general ledger
accounts prescribed in Water District
Accounting Manual? X
e. Adhere to other provisions of Water
District Accounting Manual? X
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3. Did the Board of Directors of the water district
impose on you any audit requirements in addition
to those stated in the Annual Report Requirements? X
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
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
a
Schedule P
Page 2
YES NO
6. Did the water district:
a. Use the capital projects fund and debt
service fund only for puposes 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
disburse 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 abserve 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
f. Make remittances of Social Security taxes
according 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
attention during your examination, for strengthen-
11
ing internal accounting controls and improving
administrative efficiency and procedures? X
a. Were your recommendations explained to and
discussed with administrative officials of
4 the water district? X
b. The date of your most recent management
letter was June 26 , 1984
a
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 consideration 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
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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
4 in the tax assessor-collector's possession
at any one time? $188 , 697
c. The frequency of tax receipts deposits
with the bonded depository? (check one)
(1 ) Daily
411 ( 2) Weekly X
( 3) Monthly
*Deposits made monthly after substantially
all current taxes are collected.
d. The percent of the assessed valuation to fair
market value? 100%
O Schedule P
Page 4
HARRIS COUNTY WATER CONTROL
O STATEMENT RELATI
March
In Mainland Commonwealth Ameritrust
Fa Savings Savings Savings
a/ Assoc. Assoc. Assoc.
a. Name of depository bank
b. Amount of FDIC or FSLIC
41 coverage $ $100, 000 $100, 000 $100, 000
c. Amount of bond or other
security pledged as of
the end of the fiscal
year - - -
a
d. Largest cash balance $ $ 60, 765 $100, 000 $100,000
e. Date of largest cash
balance 4 5/10/83 3/16/83 1/19/82
41 f. Amount of bond or
security pledged at the
time of the largest cash
balance (excluding FDIC
or FSLIC coverage) - - -
0
Note: By adoption of the Bond C
issued by the District, the Dist
the net revenues from the operat
levied by the District. Sectior,
and Regulations states:
Public Bond Issues. Where
of a public unit has custoc
law or under the bond finder
to the holders of bonds isE
deposit of such funds in ar
to be a trustee of trust fc
are pro rata beneficiaries,
interest shall be separate]
0
a
R Schedule P
Page 5
YES NO
O 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 legislation 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
examination of the financial statements are
described in the management letter or notes to
the financial statements.
15. Other comments of the Auditor:
41 None
e
4
4
A" Schedule Q
a
CERTIFICATE OF THE BOARD OF DIRECTORS
HARRIS COUNTY WATER CONTROL AND IMPROVEMENT DISTRICT NO. 108
0
We, the undersigned, do hereby certify that the audit report
of the above-named Water District for the fiscal year ended March
• 31, 198 was received by the Board of Directors on the /7 day
of , 1984 and was reviewed and ✓ approved;
o d st a meeting of the and of Directors of the
Water Di rict on the 17 day of , 1984.
0
Sig atu a of Board Secretary Signat a of Boa Pr ident
•
0
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