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Home My WebLink AboutFY Ended September 30, 1982DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 SYSTEM FUND FINANCIAL STATEMENTS (UNAUDITED) NINE MONTHS ENDED DECEMBER 31, 1982 January 13, 1983 Board of Directors Denton County Municipal Utility Dis-trict No. 1 of Denton County, Texas The accompanying Balance Sheet of the Denton County Municipal Utility District No. 1, as of December 31, 1982, and the related Statements of Income and Retained Earnings for the nine months then ended has been com- piled by me. A compilation is limited to presenting in the form of financial statements information that is the repre- sentation of management. I have not audited or reviewed the accompanying financi-a1 statements and, accordingly, do not express an opinion or any other form of assurance on them. A statement of changes in financial position is not included. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. I SYST'EM FUND BALANCE SilEET AS OF DECEMBER 31, 1982 (UNAUDITED) ASSETS Current assets: Cash Service accounts receivable Accounts receivable-other MUDS Interfund receivables Prepaid insurance Total current assets Total assets LIABILITIES & FUND BALANCES Current liabilities: Accounts payable $ 11,809 Payroll taxes payable 2,362 Security deposits-residential 1,140 Security deposits-builders 4,095 Interfund payables 48,000 Total current liabilities 67,406 Total liabilities 67,406 Fund balances: Unallocated fund balance (156,354) Allocated from net tax revenues 196,907 Transfers to general fixed assets fund (18,345) Total fund balances 22,206 -- Total liabilities & fund balances $ 69,614 See accountant ' s compil~ation report. DENTON COUNTY MUNICIPAL UTILITY DlSTPICT NO. 1 SYSTE!.! FUND STATEMENT OF REVENUES, EXJJENSES AND FUND BALANCES FOR NINE MONTHS ENDED DECEMBER 31, 1982 (UNAUDITED) Variance Actual Operating income : Water taps $ 20,445 Sprinkler inspection fees 230 Water & sewer service 177,744 Exp. reimburse 0 ther income 452 Sewer inspection fees 855 Irrigation 1,518 Monthly O&M billings to MUD 2 20,925 Monthly O&M billings to MUD 3 16,524 Total operating income 233,693 Extraordinary income 32,916 Total income 271,609 Operating expenses: Salaries & wages 86,503 Water purchases 16,266 Maintenance & repairs-contract Fuel & 1.ubricants Chemicals 2,112 School, dues, memberships Maintenance & repairs ma-terials-in house 40,371 Uncollectible accounts Workers' compensation 231 Legal 8,034 Engineering Management, Consulting, Acctng. 9,089 I.R.A. 4,023 Uniforms & towels 1,353 Printing & office supplies 3,617 Postage 1.,418 Telephone 3,805 Utilities 47,977 Insurance & surety bond prem. 12,904 Travel & per diem 4,296 E:mployers OASI expense 8,369 Contract labor 864 Budget $ 10,050 225 192,363 4,500 From Budget (Unfavorable) (Continued) DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 SYSTEM FUND STATEMENT OF REVENUES, EXPENSES AND FUND BALANCES FOR NINE MONTHS ENDED DECEMBER 31, 1982 (UNAUDITED) Actual Budqet Operating expenses : (contd. ) Election $ 432 $ 264 Miscellaneous 518 375 Directors' fees 1,525 1,350 To-tal operating expenses 253,707 223,920 Totals brought forward: Total income 271,609 252,012 Total operating expenses 253,707 223,920 Income before operating transfers 17,902 28,092 Operating transfers (tax revenue) 7,587 12,435 Net income 25,489 40,527 Fund balances, March 31, 1982 Transfers to general fixed assets fund (18,345) (18,300) Fund balances. December 31; 1982 Extraordinarv income" * Annual expense reinrbursement MUD 2 MUD 3 Total YE 3/31/81 - 7,133 5,721 12,854 YE 3/31/82 10,588 9,474 20,062 -- See accountant's compilation report. Varisnce From Budget (Unfavorable) IYBZ JUL 26 Fil 2: 13 DENTOB COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 COMBINED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION YEAR ENDED MARCH 31, 1982 with REPORT OF CERTIFIED PUBLIC ACCOUNTANTS TABLE OF CONTENTS Report of Certified Public Accountants Financial Section Combined Balance Sheet - All Fund Types and Account Groups Combined Statement of Revenues, Expenditures, and Changes in Fund Balances - All Governmental Fund Types Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual - General Water and Sewer Fund Notes to Combined Financial Statements Supplementary Information Analysis of Changes in Cash and Temporary Investments - All Funds General Long-term Debt Service Requirements - by Years Analysis of Changes in General Long-term Debt Schedule of Temporary Investments Analysis of Taxes Receivable Analysis of Organizational Costs Analysis of Changes in General Fixed Assets Certificate of The Board of Directors Questionnaire to be Completed by Auditor Insurance Coverage Board Members, Key Administrative Personnel and Legal Counsel Schedule Number - Page - 1-2 Board of Directors Denton County Municipal Utility District No. 1 Fort Worth, Texas We have examined the accompanying combined financial statements of Denton County Municipal Utility District No. 1 at March 31, 1982, and for the year then ended listed in the foregoing table of contents under the caption "Financial Section." Our examina- tion was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the account- ing records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the combined financial statements referred to above present fairly the financial position of Denton County Municipal Utility District No. 1 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. Our examination was made for the purpose of expressing an opinion on the combined financial statements, taken as a whole. The supplementary information listed in the table of contents, pages 19 through 35, is presented for purposes of additional analysis and is not a required part of the combined financial statements. Such information has been subjected to the auditing procedures applied in the examination of the combined financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. June 11, 1982 EXtliLiIT A DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 COMOlNED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS AS of hlarch 31, 1982 nSSETS Current Assets Cash: Unrestricted Cash Restricted Cosh Total Cnsh Restricted Temporary Investments, at cast Total Cnsh and Temporary Investments Accounts Recelvnble nnd Accrued Revenue Prepnld Insurance Interfund Receivoblee 'rota1 Current Assets Genernl Fixed Assets - Notes 3. 4 nnd 6 intangible and Other Assets Provision for Banded Oebt Amount Avvilnblc for Ret11.emcnt of General Long-term Debt Amount to be Provided for Retirement of Generui Long-tenil Debt Total AsseLs Governmental General Water and Sewer Fund Fund Types Account Groups Debt General Gcnerol Totals Service Fixed Long-term (Ycmornndum Only1 Fund Assets Debt - 1982 - 1981 DENTON COUNTY YUNlClPAL UTILITY DISTRICT NO. 1 CObIBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS As of March 31, 1982 (Contlnuedl LIABILITIES Current Liabilities Accounts Payable and Accrued Expenses Refundnble Deposits Interfund Pnynbles Bonds Due Within One Yeur - Note 5 Totnl Current Llobilities Deferred Income Bonded Debt Pnyoble - Note 5 Totul Linbilities Commitments - Note 7 FUND EQUITY Investment in Genernl Fixed Assets Fund Balances: Reserved for Customer Deposits Resorved for Debt Service Unrestricted (DciiclL) Totul Fund Bnlunces ToLcl Fund Equity Totnl Llvblllties and Fund Equity GOYernmentRl General WihLer and Sewel. Fund Fund Types Account Groups Debt Gene~sl General Totals Servlce Fined (hlen~orondum Only) Fund Assets Debt 1982 - - 1981 - See accompanying notes. -4- rn " I inam h i0 00 m - c m 30- P Dl- Oin in (n om - - 99 9 m- mm inn i- m D OL~ 0-n m -0 10 N P m c mr; a n m i 3 m C (%- 65 YI H (h ?. 07 "7 01 m M c 0 Ln c 4 2 m ,, C 5 0 xi Y U * YO C-. YI C m 4 Y "ri LOU ", D .. 5; d U1 mu ..d L.d CUlY Ci Y 4C y"3 "Y iJ0 Y YIULLC* iU WT 3E.O 2" .I D..CC amm030' DLZ?W d CUddOlM 0000- LXm-ICOIIC YI*.idV *W DeO*mLOmc>am w-3 ao9mdG.-ru a3 UY mmru4.dm-mY r. *'*dlYdm"L"dm = 0 OL~i+.1354 m 'i liCY3>.il:331 Y'iO 3hPTOia03"X Baa- ,dEDi"lOUY".da OaYUamUm3ECIP EXHIBIT B DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. l COhlBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES For the year ended Marctl 31, 1982 Governmental Fund Types Gcnernl DebL Totals Wntel. ond Service (&!ernorandurn Only1 Sewer Fund - Fund 1982 - 1981 - OLher Flnonclng Sources (Uses): Proceeds of Genernl Ohligvtton Bond Issue 5 - $ - $ - $ 2,067,239 Interes~ on Temporary Investments 127,837 127,837 70,902 Operating Transfers In 120,487 120,487 Operntlng Transiers Out (120.487) (120.487) Total Oiher Flnvnclng Sources (Uses) $120.487 $ 7,350 $ 127,837 8 2,138,141 Excess of Revenues and Other Plnnnclng Sources Over Expendirures and Other Uses $ 31.905 $ 136.341 $ 168,246 8 465,253 Fund Bolonces (Deficit) at Beginning of Year $(16.840) $ 970,271 $ 953.431 8 488,178 Fund Balances nr End of Year $ 15.065 2 %1.121.677 E 953.431 See accompanying notes. -6- DEXTON COUNTY MUNICIPAL UTILITY DISCRICT NO. 1 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND For year ended March 31, 1982 Genera1 Water and Sewer Fund Variance - Favorable Budget Act,ual (Unfavorable) Revenues : Water Service - Note 6 Sewer Service - Note 6 Water and Sewer MUD #2 Water and Sewer MUD #3 Inspection and Tap Fees Billing for Damages and Miscellaneous Labor Total revenues $261,166 $ 197,588 $ (63,578) Expenditures: Salaries, Wages, Benefits and Taxes Water Purchases and Power (Water, Sewer, Utilities and Telephone) Professional Fees: Legal Engineering Auditor Contract Labor Maintenance Boolckeeping Equipment Rental Printing and Office Supplies Postage Insurance and Bonds Directors Fees and Per Diem Sub-contract Electrical Testing Lab Election Inventory Transportat ion Equipment DENTON COUNTY MUNICIPAL UTILITY DISCRICT NO. 1 COMBINED STA'TEMENT OF REVENUES, EXPENDITUlZES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND For year ended March 31, 1982 (Continued) General Water and Sewer Fund Variance - Favorable Budget Actual (Unfavorable) Expenditures (continued): Fuel and Lubricants Chemicals Small Tools Capital Outlay Schools, Dues and Memberships Miscellaneous Expense Uncollectihle Accounts Capital Expenditures Total Expenditures Excess of Expenditures over Revenues Other Financing Sources: Reimbursement of Expenditures Transfers In Total Other Financing Sources Excess (Deficiency) of Revenues and Other Financing Sources Over Expenditures and Other Uses Fund (Deficit) at Beginning of Year Fund Balance at End of Year See accompanying notes. -8- DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 1: Summary of Accounting Policies A. Description of Funds The District has established a number of funds, in conformance with generally accepted accounting principles and the recommendations of the National Council on Governmental Accounting, for the purpose of accounting for transactions in compliance with legal requirements. Funds and account groups in use by the District in accounting for its financial activities are as follows: Governmental Funds General Water and Sewer Fund - To account for all of the general water and sewer revenue of the District not specifically levied or collected for other District funds, and for expenditures related to the maintenance of operations. Debt Service Fund - To account for the source and disposition of funds for paying interest and principal on general long-term debt. Capital Projects Funds - To account for the acquisi- tion of capital facilities being financed from bond proceeds. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 1: Summary of Accounting Policies (continued) Account Groups General Fixed Assets Accounts - To account for property and equipment of the District. General Long-term Debt Accounts - To account for the unmatured principal of outstanding bonds. B. Basis of Accounting The District maintains its accounting records on the modified accrual basis whereby reve- nues and expenditures are recognized in the account- ing period in which they are earned or incurred with the exception of interest on general long-term debt and tax revenues which are recognized when due. C. Property, Plant and Equipment Property, plant and equipment is recorded at cost when acquired. General fixed assets are recorded as expenditures in the General Water and Sewer Fund and Capital Projects Fund at the time of purchase and are capitalized in the General Fixed Assets account group. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 1: Summary of Accounting Policies (continued) Costs related to repairs and maintenance are recorded as expenditures. Significant renova- tions and improvements are capitalized. D. Investments Investments are carried at cost which approximates market. The District ' s intent is to hold these investments until maturity. E. Total Columns on Combined Statements Total columns on the combined statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analy- sis. Data in these columns do not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interf und eliminations have not been made in the aggregation of this data. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 1: Summary of Accounting Policies (continued) F. Reclassification Certain items have been reclassified and certain funds grouped under generic "Fund Types" and "Account Groups" in 1982 to conform to generally accepted accounting principles. The financial statements for the preceding year were presented in multiple funds recorded on the basis of the Water District Accounting Manual of the Texas Department of Water Resources. Note 2: Creation of District - Denton County Municipal Utility District No. 1 was created by an order of the Texas Water Rights Commission on March 4, 1975 and confirmed by the electorate of Denton County Municipal Utility District No. 1 at a confirmation election held on October 7, 1975. The Board of Directors held its first meeting on April 24, 1975, and the first bonds were sold on June 8, 1976. Note 3: Bond Interest - In accordance with the bond resolution dated October 29, 1975, a portion of the bond proceeds was deposited into the Debt Service Fund for the payment DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 3: Bond Interest (continued) of bond interest during the construction period. This bond interest has been capitalized as an organizational cost for the construction period. Note 4: Organizational Costs - The District, in conformance with requirements of the Texas Water Rights Commission, capitalized and charged to organization costs for the creation period all costs incurred in the creation of the District allowed by statute. The Texas Water Rights Commission also requires capitalization as organizational costs for the construction period all costs incurred in the issue and sale of honds, bond interest and amortized bond premium and discount, losses on sales of investments, accrued interest on investments purchased, attorney fees and some adminis- trative expenses until construction and acceptance or use of the first revenue producing facility has occurred. As the District purchased its facilities already completed by the developer, only those costs funded by bond proceeds were capitalized. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 5: General Long-term Debt - At March 31, 1982, the District's long-term debt consisted of: Range of General Interest Long-term Current Long-term Maturity Rates Debt Maturities Maturities Water Works and Sewer System Combination Unlimited Tax and Revenue Bonds Series 1976 Water Works and Sewer System Combination Unlimited Tax and Revenue Bonds Series 1980 Serially through 8.75 - 2006 9.25 $1,515,000 $15,000 $l,5OO,OOO Serially through 8.60 - 2007 9.50 2,035,000 2,035,000 A schedule of bond maturities for the next five years is as follows: Tax and Revenue Tax and Revenue Bonds Series 1976 Bonds Series 1980 Total 1983 $ 151,363 $ 190,260 $ 341,623 1984 155,050 215,260 370,310 1985 153,300 218,048 371,348 1986 156,550 215,332 371,882 1987 154,363 217,618 371,981 Thereafter 3,029,216 4,403,830 7,433,046 3,799,842 5,460,348 9,260,190 Less interest 2,284,842 3,425,348 5,710,190 Principal 51,515.000 $2,035,000 %3,550,000 DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 5: General Long-term Debt (continued) Tax and revenue bonds authorized and unissued as of March 31, 1982, amounted to $8,779,217. The bonds are payable from the proceeds of an ad valorem tax levied upon all property subject to taxation within the District, without limitation as to rate or amount, and are further payable from and secured by a lien on and pledge of the net revenues to be received from the operation of the District's waterworks and sanitary sewer system. The provisions of the bond resolutions relating to debt service requirements have been met and the cash allocated for these purposes is sufficient to meet debt service requirements for the fiscal year ending March 31, 1983. The outstanding bonds are callable for redemption prior to maturity at the option of the District. The bonds may be called in whole or in part for the purpose of retirement or refunding, or both, at par in addition to unpaid accrued interest. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. I NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 6: Water and Sewer Service Rates - The Denton County Municipal Utility District No. 1 has established the following water and sewer service rates: Tap Fee Sewer Inspection Fee Water Service Only: Treated Water: First 8,000 Gallons of Water Used Minimum Bill Each 1,000 Gallons of Water Used Thereafter Untreated Water: Each 1,000 Gallons of Water Used Standby Fee Per Month Sewer Charge Per Month Note 7: Commitments - The District has an agreement with a developer whereby the developer awards contracts and makes progress payments to independent contractors for the construction of works, improvements, facilities, plants, equipment and appliances necessary to provide a waterworks system, sanitary sewer system, storm sewer and drainage system within said District. Upon the completion of a project and the authorization of a bond issue, the District is obligated to reimburse a percentage of the total cost of the project plus accrued interest from the date of the progress payments to the developer. The amount shown by the developer DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 7: Commitments (continued) as the District's share of construction costs on projects in progress was approximately $3.25 million at March 31, 1982. The related bonds will be issued during fiscal year ended March 31, 1983. Note 8: Changes in General Fixed Assets - A summary of changes in general fixed assets follows: Land Buildings Water System Sewage System Drainage System Machinery and Equipment Furniture and Fixtures Engineering Fees Capitalized Construction Period Costs Total Balance March 31, 1981 $ 25,675 1,800 1,207,998 912,112 717,253 Balance Additions March 31, (Deletions) 1982 * Expenditures from General Water and Sewer Fund. DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS March 31, 1982 Note 9: Property Taxes - Property taxes attach as an enforceable lien on property as of January 1, are due October 1 and become delinquent on February 1. Property taxes for the District are not limited as to rate or amount. The District's current tax rate is $.95 per $100 of assessed valuation and assessed valuation is approximately 100% actual value. SUPPLEMENTARY INFORMATION DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF CHANGES IN CASII AND TEDIPORARY INVESTMENTS - ALL FUNDS For the year ended hlvrch 31, 1982 General Debt Totals Water and Service (h'en'orondum Only) Sewer Fund Fund - 1982 1981 - Sources oi Cash Cash Receipts froin Operations Cash Disbursements for Operations: Bulk Wnter -Purchases Contract Lobor Payroll Expense Dlaintenance and lleoairs Employee Benefits Professional Fees Service Account Collection Bookkccping Utilities Recurring Operating Expenses Tux Asseesor-Collector Debt Service Expense Miscellaneous Total Cash Disbursements for Operations Net Cash from Operations Sale of Roods (Cash Allocated to Construction Fund) Reftlndnble Deoo+i ti- Received , Cash Transfers fro," other Funds 'L'otnl Cash Provided EXHIBIT D DCNTON COUNTY YUNICIPAL UTILITY DISTRICT NO. I ANALYSIS OF CliANGES IN CASH AND 'TCMPUILARY INVESThlENTS - ALL FUNDS Far tho year cndcd March 31, 1982 (Continued) Applicnrlons of Cash Rcimburscmont of Tux Ovcroavmcnts Poymcnt of Bond principal' . PurChBsc of Ol~TricI. Ol~panlziltlolial Cost5 (Asact Transferred to Ganeral Flxcd Assets) Payment of Construction Contrncts Payable Deposits ncfundcd Purchuso of Fixed Asscts (bv General Wurer and Scwor Fund) Cash Transfers to Other Funds Other Applicntioos 'Total CBS~ Applied Incrcasc (Decrcasc) In Cvsh Cvsh und Temporary Invcstmcnt Bolvnccs at Beginning of Yevr Cash and Temporary Invcstmcnt Bnlvnccs at End of Ycar General Debt Totals Water and Service (Memorandum Only) Sc~er Fund Fund - 1982 - 1981 DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 GENERAL LONG-TERM DEB'S SERVICE REQUIREhlENTS - BY YEARS AS of hlorch 31, 1982 Due During Fiscal Years Ending 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Series 1976 Series Principal Interest Due Principal Interest Due Due hlorcl? 1 and Due March 1 and hl~rch 1 September 1 Total March 1 September 1 Totals ~1,515.000 $3,799,842 -000 u25.348 Cash and Temporary Investments Balnnces at Mnrch 31, 1981: Debt Service Fund $896.092 CBS~ and Temporary Investments Balances at biurch 31, 1982: Debt Service Fund $939.283 mmm 000 mil= a a a Y) m UI * * P P m 0- nnc 3 0 m mom 113 * 5311 v m s mC* m -* mno S 3 0 <P" m P - n X l rm 5 0 0 3 arm me? mnll m m m m -am a in - Y r Y "*W m*m 4m r mp- X m mxm r3 m Y m 2 0 a WOW WYWWWWWWWWYWYW ,__ ,,.,..,....... rrrrrrrrrrrrrr -rr -.-.-.-.-.-.-. -. -. -. m lo m mmmmwmammmwmwm .,,-..,........ ,.. rrrrrrrrrrrrrr -rr SCHEDULE A-2 DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF TEMPORARY INVESTMENTS For the year ended March 31, 1982 Funds Debt Service Fund Accrued Interest Identification Balances Receivable or Certificate Interest Maturity at End at End Number Rate Date of Year of Year Certificate of Deposit 218206 Certificate of Deposit 229510 Totals SCHEDULE A-3 DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF TAXES RECEIVABLE As of March 31, 1982 Taxes Receivable at Beginning of Year $ 86,912 1981 Year Tax Roll Total to be Accounted For Less collections: Current Year Prior Years' Taxes Taxes Receivable at End of Year Taxes Receivable by Years Assessed Valuation Summary Property Valuations: Land Improvements Personal Property Exemptions Total Valuations Tax Rate Per $100 Valuation $0.95 - Tax Year: From January 1, 1981 to December 31, 1981 Percent of the Assessed Valuation to Fair Market Value 100% Percent of Current Taxes Collected to Current Taxes Levied 85.1% Percent of Current and Delinquent Taxes Collected to Current and Delinquent Taxes Outstanding at the Beginning of the Tax Year 83% SCHEDULE 81-4 OENTON COUNTY LIUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF ORGANIZATIONAL COSTS For the year ended hlvrch 31, 1982 Balances at Balances Beginning Additions uL End of Yenr (Decreases) of Yenr Or~nniaaLional Costs - Creation Period Engineering and Surveys Filing Fees, Licenses, Legal Notices, and Permits Legal Fces Director Fces and Per Diem Other Costs Totnl Organizational Costs - CreoLion Period Or~onizntianvl Costs - ConsLruction Period Legal Fees Financial Consulting Fees Ope~atlnf Expenses Bond 1n~;rest Expense Amortized Band Discount Total OrgnniaaLional Coete - Construction Period Total Organizationnl Costs Amounts Provided: For District O~gnnizntionvl Costs - Creation Period by Construction Fund For District Organizational Casts - Constructioo Period: By CnpiLal Projects Fund By OebL Service Fund Total District Organizntional Costs - Construction Period Total Provided SCHEDULE A-5 DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS For the year ended March 31, 1982 General Fixed Assets: Land Buildings Water System Sewage System Drainage System Machinery and Equipment Furniture and Fixtures Engineering Fees Tot a1 Additions Provided by: Debt Service Fund Contributions by Developers Contributions by General Water and Sewer Fund Balances at Beginning of Year Balances Additions at End (Deletions) of Year Total CERTIFICATE OF THE BOARD OF DIRECTORS Denton County Municipal Utility District No. 1 Name of Water District Denton County 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 of Directors on the .i 7. . r.! ,;,yL(iY , 1982 and was reviewed and approved I.,' /' disa-pproved--at a meeting of the Board of Directors of the Water District on the ~~j?~~ JTJ,/~,, 1982. </ / Signature of Board President Signature of Board Secretary QUESTIONNAIRE TO BE COMPLETED BY AUDITOR For the year ended March 31, 1982 Denton County Municipal Utility District No. 1 Name of Water District 1. At the time that your firm was engaged by the Board of Directors of the above-named water district to perform this audit, was a copy of the Water District Accounting Manual made available to you? 2. The Water District Accounting Manual prescribes accounting principles and policies. Af ter takina these into consideration, did the local - water district: a. Maintain a proper classification of expenses and revenues? h. Record expenses and revenues on the basis of full accrual accounting except for the specific revenue and expense items required to be maintained on the cash basis by the Water District Accounting Manual? c. Maintain the double entry system of accounting? d. Keep a general ledger in accordance with the uniform classification of general ledger accounts prescribed in Water District Accounting Manual? e. Adhere to other provisions of Water District Accounting Manual? 3. Did the Board of Directors of the water district impose on your firm any audit require- ments in addition to those minimum audit requirements of the Water District Accounting Manual? 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? Denton County X -- Yes No X -- Yes No X -- Yes No X -- Yes No X -- Yes No X -- Yes No X -- Yes No X -- Yes No QUESTIONNAIRE TO BE COMPLETED BY AUDITOR For the year ended March 31, 1982 (Continued) 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? 6. Did the water district: a. Use the construction fund, tax fund and debt service fund only for purposes authorized by the Board of Directors of the water district and/or within the provisions of applicable bond resolu- tions? b. Properly segregate and maintain the required amount of cash escrowed by the Texas Water Rights Commission or disburse the escrowed cash according to the terms prescribed by the Texas Water Rights Commission? c. Do business only with firms or corporations in which members of the Board of Directors had no pecuniary interest? d. Observe the conditions for obtaining grants, gifts, etc., or observe agreements with governmental agencies for the purpose of securing funds or services? e. Have a contract for Social Security coverage for its employees with the Texas Department of Public Welfare, Social Security Division? f. Make remittances of Social Security taxes according to the terms of the contract for Social Security coverage with the Social Security Division of the Texas Department of Public Welfare? X -- Yes No X -- Yes No X -- Yes No X -- Yes No (1) -- Yes No X -- Yes No X - Yes NOTE: See Page 32 for explanation of references (1) - (4) QUESTIONNAIRE TO BE COMPLETED BY AUDITOR For the year ended March 31, 1982 (Continued) 6. Did the water district (continued): g. Deposit receipts to the proper funds kept by the approved depository bank? h. Draw checks only on funds approved by the Board of Directors and signed by authorized personnel? 7. Do you issue a management letter to administra- tive officials of the water district at least annually which sets forth your comments (based on matters which came to your attention during your examination) for strengthening internal accounting control procedures? If Yes is checked for question 7: a. Were your recommendations explained to and discussed with administrative officials of the water district? b. The date of your most recent management letter was March 25, 1982. c. Is there evidence indicating that your previous year(s) recommendations have been or are being implemented? d. Has a copy of the management letter been filed with the Texas Water Rights Commission? 8. The Texas Water Code makes specific provisions relating to security provided by depository banks. After consideration of the applicable laws pertaining to the specific water district, did the depository bank provide adequate security of the correct type? Please indicate for each depository: (2) a. The name of the depository bank - First National Bank, Fort Worth; b. Amount of F.D.I.C. coverage (if member bank). c. Amount of bond or other security pledged as of the end of the fiscal year. X -- Yes No X -- Yes No X -- Yes No X -- Yes No X -- Yes No X -- Yes No X -- Yes No QUESTIONNAIRE TO BE COMPLETED BY AUDITOR For the year ended March 31, 1982 (Continued) 8. (continued): d. Largest cash balance. e. Date of largest cash balance. f. The amount of bond or security pledged at the time of the largest cash balance (excluding F.D.I.C. coverage). 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. d. More than one of the above. 10. Was the tax assessor-collector bonded as required by law? 11. What was : a. The tax assessor-collector bonded for? b. The greatest amount of the district's taxes in the tax assessor-collector's possession at any one time? c. The frequency of tax receipts deposits with the bonded depository? (check one) (1) Daily. (2) Weelrly. (3) Monthly d. The percent of the assessed valuation to fair market value? 12. We (check one): a. Actually examined the records of the tax assessor-collector. b. Received written confirmation for tax data from the tax assessor-collector. X -- yes no c. Accepted tax data furnished by the district's administrative offices. QUESTIONNAIRE TO BE COMPLETED BY AUDITOR For the year ended March 31, 1982 (Continued) 13. As a result, were local tax revenues (including delinquent taxes and interest and penalties on taxes) properly separated for debt service? 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? 15. Other Comments of the Auditor: None. (1) No intergovernmental transactions. (2) The District also maintains a tax depository account at Jetero Bank, Westfield, Texas. It is the policy of the District that deposits held in the account are not to exceed F.D.I.C. coverage of $100,000. (3) Based on audit review, securities pledged and F.D.I.C. coverage exceeded cash and temporary investments during fiscal year ended March 31, 1982. X -- Yes No X -- Yes No (4) Receipts are deposited as received into district account. ? C i ' rwr - > nP iYI B E 0 P 'O wmn wmmr. :p: -: ::B :::L aP.m " r TI -0 'Ci +-P n mmn - n mrr m rrv =Lo m 3Y .,Ye LIY .. .- c n 3 n 4- P.,m or u- :,"3 "r: ,e.- ,e ?- 03 rnCZPF Or. ++Yi 310 31 -<TI h PYS PY m" 0 m I m DO m 2 ; 1 37 " "30 c a OF- a - < 1 mY h 1 -. 1 s B n ID 0 r i WOP O BX" - TI ., r~m m 3mo 0 our n mmr. a 3r.n 1 POW - m3m m P m r . 0" N UI - c r ' L 0 Ui UIN 'Ci +- r ? t, r : w - om 3 3 r a N yl m m r ma r "IN d 0 0 3 1 m m NN Y =. -, " +- F ..,wg*TI ems= P ,- D < n r m s n o.. 'Ci n ., 5 - z;, s 7 rn :>: P nm= 0 m 3 P. 13 m --? E Cr z C -il , IP 22%E% 0 C m m 2; ;; { $2: $ 2 $ 2 n 'Cia CO .I 'Ci'CiP 0 P iF -07 a 0 0 D 3 ,a pn +- ;In- B P F = Y~ 3 ~nh n m in m OOOUi roDCFC C 'rnl" om=:z; w P1 1-0 P r nr P _I*-r "0 , PinkYYY 0 3in D on m 3 TIC m am sip s 3 "7 P i 0 rn31.O -3rininin F Y+- 3 DCCC B B .mu77 'Ci UITI co~rnom P 2 I" lcmnrn 0 i 3 P' Y Y Y C m r .c am 2 0 1 0 m 0 02E U) . . . 3 a. N - Vi 0 0 0 La" &+- a) a) 10 10 a) w1 a) a) c r i";n 'A +- -- 00 00 00 00 yl 00 OViOOO -.. -. - 00 PP>>b Oa) 09 om 00 g ?P om000 00 OD o 00 Ooooo 0 0 0 0 S i7 C 0 ms 'a D r rn ma 4+ in in mm in in in in in - n -r - n r 0 D 00 OOOOO "DO" : r :: r ?Y ,7 ,7 : ?? 0 0 0 0 0 0 0 0 in n " 0 0.7-3 om- XOTI .mm IF cro r - +" C 0 k = DZNTON COUNTY hlUNICIPAL UTILITY DISTRICT NO. 1 BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND LEGAL COUNSEL March 31, 1982 Name and Address Dennis C. Diamond 304 Inverness Drive Roanoke, Texas 76262 Jerry Svare 250 Oakhill Drive Ronnoke, Texas 76262 Ernest W. Steelmnn 110 Inverncss Drive Roanaire, Texas 16262 Paul Tanner 1114 Berkshire Court Roanoke, Texas 76262 Ronald L. Ridgewoy 6 Hillcrest Court Roanoke, Texas 76262 Term Relationship with Mnjor of Office Board Members Resident Land Owners, Engineer, Elected and Annual of Attorney and Tax Expires Salary Title District7 Assessor-Collector 4-03-82 Per Diem President Yes None 4-07-84 4-04-81 Per Diem Vice-President Yes None 4-02-83 4-04-81 PIP Diem Secretary1 Yes 4-02-83 Treasurer 4-03-82 Per Diem Director Yes None 4-07-84 4-04-81 Per Diem Director Yes None 4-02-83 DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 1 BOARD MEMBERS, KEY ADbIINISTRATIVE PERSONNEL AND LEGAL COUNSEL March 31, 1982 (Continued) Nnne and Address District Mnnnger and Other Relationship with blojor Ke Resident Land Owners, Eogineer, Date of Attorney and Tax Hired - Fees Pnid Title district? Assessor-Collector Willis F. Brown Contrnct $ 1,705 Accounting Consultant No None 1200 summit Fort Worth, Texas Advanced Computing, Inc. Contract $15,951 Yes None P. 0. Box 130 [Expired Roanoke, Texas 76262 7-31-81) Denton County Appraisal District 4-01-81 $ 8,382 No None P. 0. Box 2816 Denton, Texas Municipal People, Inc. Contract $82,992 Operational Contrnctor No None P. 0. Box 421 (Expired Lewisville, Texas 75061 10-25-81) District Legal Counsel Gadfrey, Decker, McMackin Inception $ 5,695 Shipmon, blcclane & Bourland 1800 Commerce Building Fort Worth, Texas District Tan Assessor-Collector Keoneth R. Byrd Contract $10,311 P. 0. Box 90863 Bouston, Texns 77090 General blnnnger Harold Forecnvn 3-16-81 $30,900 Route 1 BOX 420 Lone Oak, Texas 75453 None None