HomeMy WebLinkAboutFY Ended September 30, 1983TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
FINANCIAL STATEMENTS
AND SUPPLEMENTARY SCHEDULES
YEAR ENDED SEPTEMBER 30, 1983
with
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS
TABLE OF CONTENTS
Page
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 Schedules
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 Tases Receivable
Analysis of Organizational Costs
Analysis of Changes in General Fixed Assets
Comparative Statement of Revenues and
Expenditures - Period and Four Years
Insurance Coverage
Board Members, Key Administrative Personnel
and Consultants
Questionnaire to be Completed by Auditor
Certificate of the Board of Directors
CERTIFIED PUBLIC ACCOUNTANTS
3015 WEST FIFTH STREET FORT WORTH.TEXA5 76107
817/33~-0061
GUINN W PHILLIPS
DAVID E. WELCH
JOE A. DILLARD
CONNIE JO ROBERSON
JAMES L. BUXTON
RANDAL R. BOYTS
Board of Directors
Trophy Club Municipal Utility District No. 1
Roailolce, Texas
We have examined the accompanying combined financial
statements of Trophy Club Municipal Utility District No. 1 at
September 30, 1983, and for the period then ended listed in the
foregoing table of contents under the caption "Financial Section."
Our examination was made in accordance with generally accepted
auditing standards and, accordingly, included such tests of the
accounting records and such other auditing procedures as we con-
sidered necessary in the circumstances.
In our opinion, the combined financial statements re-
ferred to above present fairly the financial position of Trophy
Club Municipal Utility District No. 1 at September 30, 1933, and
the results of its operations for the period then ended, in con-
formity with generally accepted accounting principles applied on
a basis consistent with that of the preceding year.
Our examination was made for the purpose of forming an
opinion on the combined financial statements, taken as a whole.
The accompanying supplementary schedules listed in the table of
contents, pages 15 through 32, are presented for purposes of
additional analysis and are 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.
November 16, 1983
TROPIIY CLUB hlUNICIPAL UTILITY DISTRICT NO. 1
COLIBINED BALBNCE SIICWI' - ALL FUND TYPES
AND ACCOUNT GROUPS
As of September 30, 1983
ASSETS
Current nssets
C0.511:
Unrestricted cash
Restricted cash
Totnl cash
Restricted temporary investments, nt cost
Total cash and temporary investments
Accounts raccivuhle and accrued rcvenue
Prcpaid insurance
Interfund receivables
Totnl current assets
Gencral Cised assets - Notcs 3, 4 and 8
Intnngihle and other assets
Provision for bonded debt
Amount uvai1:~blc for rctiremcnt oi
general long-term debr
Amount to be provided for rctiremenr of
general long-term debt
Total nssets
Governmental Iund tpnes :Account groups
General Debz Capital General Gcneral
viatcr and service projects fixed long-term
sewer fund - fund fund BSSetS debt
Totals
(memorandum only)
Perlad endcd Year emded
September 30, Slurch 31,
1983 1883
TROPllY CLUB b1UNICIPAL UTILITY DISTRICT NO. 1
COhlBINED BALANCE SliCET - ALL FUND TITES
AND ACCOUNT GROUPS
As of September 30, 1983
(continued)
LIIIBILITIES
Current liabilities
Accounts pnyablc nnd accrued expenses
neiundable deposits
Intcriund paynblcs
Bonds due within one year - Note 5
Total current liabilities
Dcierrcd lncome
Bondcd debt payable - Note 5
Total liabilities
Commitments - Note 7
FW EQUITY
Investment in general fiscd nssets
Fund bolnnccs:
Reserved for customer deposits
Reserved far dcbt service
Unrestricted (deficit)
Total fund balances (dsiicits)
Total fund equity
Total liabiliries and iund equity
Totals
Governmental fund types Account groups (inemorundurn only)
Gencral DebT. Capital Gcncral General Poriod ended Scar cndcd
water and service projects iised long-term September 30, :Inrch 31,
sewer fund - fund fund assets debt 1983 1983
See accompnnying notes.
TROPNY CLUD hIUNICIPiZL UTILITY DISTRICT NO. 1
COhlBINED STATEhlENT OF REVENUES, LDENDITURES, AND
CilANGES IN FUND BALANCES - ALL GOVTRN.\lENTAL FUND TYPES
For the period ended Scpzcmber 30, 1883
Revenues
Service revenues - Note 6
Tap connection revenues
Tax rovcnues - Note 9
Penalty revenue
Expense rcimbursemcnts
hliscellancaus
Total revenucs
Esponditurcs
Bulk water purchases
Payroll expenses
Employee boneiits
Pralessionol fees
Capital outlay
Utilities
Recurring operating expenses
Tax assessor-collector
hliscellaneous
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Lsccss (dcsiciency) oi rcvenues over expenditures
G~vcl~nm~11Tn.1 Iund types
General Debt Capital
water and service projects
sever fund Iund fund
Totals
(memorandum only)
Per~od ended Ycvr ended
Septcmbcr 30. Uarch 31,
1883 1883
TROPlIY CLUB hNNICIPAL UTILITY DISTRICT NO. 1
CObIBINED STATEblENT OF REVENUES, ESPENDITURES, AND
CF1:INGES IN FUND BALANCES - ALL GOV3RNWNTAL FUND TYPES
For the period ended September 30, 1983
(continued)
Orher Iinancing sources (uses):
Proceeds oi ceneral obliention bond issue
Total other Iinancing sources (uses)
Excess (deficiency) of revenues and
Other Iinancing saurccs over
espenditurcs and other uses
Fund balances (deficit) nt beginning of period
Fund bvlvnccs (dcficlt) at cnd oi pcriod
Governmental fund tylx?s
General Debt Crp~tvl
water and servzcc projects
sewer fund - Iund fund
Totals
(eeaornndum only)
Pe~iod ended Ycar ended
Scptelnber 30, blorcb 31,
1983 1'383
Sea accompanying notcs.
-5-
TROPHY CLUB h1UNICIPSL UTILITY DISTRICT NO. 1
COhlBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL WATER AND SEM'ER FUND
For period ended September 30, 1983
General water and sewer fund
Variance
favorable -
Budget Actual (unfavorable)
Revenues :
Water and sewer service - Note 6
Water and sewer MUD $2
Water and sewer MUD $3
Inspection and tap fees
Miscellaneous
Total revenues
Expenditures:
Salaries, wages, benefits
and taxes
\Vater purchases and power
(water, sewer, utilities
and telephone)
Professional fees:
Legal
Engineering
Auditor
Maintenance
Printing and office supplies
Postage
Insurance and bonds
Travel and seminars
Election
Transportation, fuels
and lubricants
Chemicals
Uniforms and towels
Board related expenses
Schools, dues and memberships
Miscellaneous expense
Capital expenditures
Total expenditures
TROPHY CLUB IvlUNICIPAL UTILITY DISTRICT NO. 1
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL -
GENERAL WATER AND SEWER FUND
For period ended September 30, 1983
(continued)
General water and sewer fund
Variance
favorable -
Budget Actual (unfavorable)
Excess (deficit) of 'evenues
over expenditures
Other financing sources:
Reimbursement of e~pellditu~es
Transfers in
Total other financing
sources
Excess (deficiency) of revenues
and other financing sources over
expenditures and other uses
Fund balance at beginning of period
Fund balance (deficit) at
end of period
See accunipanying i10teS.
,.. -I-
TROPHY CLUB h1UNICIPAL UTILITY DISTRICT NO. 1~
NOTES TO COMBINED FINANCIAL STATEhlENTS
September 30, 1983
Note 1: Summary of accounting policies
A. Description of funds
The District has established a number of
funds, in conformance with generally accepted account-
ing principles and the reco~nmei~dations 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 dis-
position of funds for paying interest and principal on
general long-term debt
Capital pro,jects funds - To account for the acquisitio~l
of capital facilities being financed from bond proceeds.
Account groups
General fixed assets accounts - To account for property
and equipment of the Distric~.
General long-term debt accounts - To account for the
unmatured principal of outstanding bonds.
TROPIIY CLUB k!UNICIPAI> UTILITY DISTRICT NO. 1
NOTES TO C0:vIBINED FINANCIAL STATEMENTS
September 30, 1983
Note 1: Summary of accounting policies (continued)
B. Basis of accounting
The District maintains its accounting records
on the modified accrual basis whereby revenues and ex-
penditures are 'ecognized in the accounting 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.
Costs related to repairs and maintenance are
recorded as expenditures. Significant renovations and
improvements are capitalized.
Investments D. -
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 th~:~ are
presented only to facilitate financial analysis. Data
in these columns do not present financial position,
results of operations, or changes in financial position
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COMBINED FINANCIAL STATEMENTS
September 30, 1983
Note 1: Summary of accounting policies (continued)
in conformity with generally accepted accounting principles.
Neither is such data comparable to a consolidation. Inter-
fund eliminations have not been made in the aggregation of
this data.
Note 2: Creation of district - Trophy Club Municipal Utility Dis-
trict No. 1 was created by an order of the Texas Water Rights
Commission on March 4, 1975, and confirmed by the electorate
of Trophy Cl-ub Municipal Utility District No. 1 at a confir-
mation election held on October 7, 1975. The Board of Direc-
tors 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 de-
posited into the debt service fund for the payment of bond
interest during the construction period. This bond interest
has been capitalized as an organizational cost for the con-
struct ion period.
Note 4: Organizational costs - The District, in conformance with
requirements of the Texas Water Rights Commission, capi-
talized 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 con-
struction period all costs incurred in the issue and sale of
bonds, bond interest and amortized bond premium and discount,
losses on sales of investments, accrued interest on invest-
ments purchased, attorney fees and some administrative ex-
penses until construction and acceptance or use of the first
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COALDINED FINANCIAL STATEAIENTS
September 30, 1983
Note 4: Organizational costs (continued)
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.
Note 5: General long-term debt - At September 30, 1983, the Dis-
trict's long-term debt consisted of:
Range of General
Water worlcs and saver
system combination
unlimited tax and
revenue bonds
series 1976
lvater worlrs and sewer
system combination
unlimited tax a~d
revenue bonds
series 1980
Water works and server
system combinat ion
revenue bonds
series 1983
interest long-term Current bng-term
Maturity rates debt mturities maturities
Serially
through 8.75 -
2006 9.25 $1,500,000 $20,000 $1,480,000
Serially
through 8 .GO -
2007 9.50 2,035,000 25,000 2,010,000
Serially
tlrougl1 8.00 -
2002 10.00 3,200,000 3,200,000
$6,735,000 $%5,000 $6 , 690,000
A schedule of bond maturities for the nest five
years is as follows:
Tax and Tax and Tax and
revenue bnds revenue bonds revenue bonds
Year - series 1976 series 1980 series 1983 - Tot a1
TROPHY CLUB hlUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COhlBINED FINANCIAL STATEMENTS
September 30, 1983
Note 5: General long-term debt (continued)
Tas and Tax- and Tax and
revenue bonds revenue bonds revenue bonds
Year series 1976 series 1980 series 1983 Total - -
Total brought
forward $3,580,954 $5,174,958 $7,037,872 $15,793,7&?
Less interest 2,080,954 3,139,953 3,837,872 9,058,784
Principal $1,500,000 $2,035,000 $3,200,000 $ 6,735,000
Tax and revenue bonds authorized and unissued as of
September 30, 1983, amounted to $5,579,217.
The bonds are payable from the proceeds of an ad
valorem tax levied upon all property subject to taxation with-
in 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 allo-
cated for these purposes is sufficient to meet debt service
requirements for the fiscal year ending September 30, 1984.
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 retire-
ment or refunding, or both, at par in addition to unpaid
accrued interest.
Note 6: Water and sewer service rates - The Trophy Club Municipal
Utility District No. 1 has established the following water
and sewer service rates:
TROPHY CLUB ilUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COlrlBIPJED FINANCIAL STATEAIENTS
September 30, 1983
Note 6: Water and sewer service rates (continued)
Tap fee
Sewer inspection fee
Water service only:
Treated water:
First 4,000 gallons of water used -
minimum bill
Nest 10,000 gallons of water used -
each 1,000 gallons
Each 1,000 gallons of water used
thereafter
Untreated water:
First 4,000 gallons of water used -
minimum bill
Each 1,000 gallons of water used
thereafter
Standby fee per month
Sewer charge per month - minimum bill 7.50
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 authori-
zation of a baud issue, the District is obligated to reim-
burse a percentage of the total cost of the project plus
accrued interest from the date of the progress payments to
the developer. There were no construction costs on projects
in progress at September 30, 1983.
Note 8: Changes in general. fised assets - A summary of changes in
general fised assets follo\\~s:
TROPHY CLUB IvfUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO COblBINED FINANCIAL STATGBIENTS
September 30, 1983
Note 8: Changes in general fixed assets (continued)
Land
Buildings
Water system
Sewage system
Drainage system
Machinery and equipment
Autos and trucks
Furniture and fixtures
Engineering fees
Capitalized construc-
tion period costs
Balance
March 31,
1983
$ 25,675
1,800
1,207,998
912,112
724,218
42,706
14,614
18,819
413,917
Addit ions
(Deletions)
$ 107,166
9,162
1,195,505
814,950
248,680
1,305*
7, 868*
-
347,773
Balance
September 30,
1983
Construction in
progress - 15,766 15,766
Total $3,753,656 $2,879, 066 $6,632,722
(*) Expenditures from general water and sewer fund
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 'ate or amount. The District's current
tax rate is $.56 per $100 of assessed valuation and assessed
valuation is approximately 100% actual value.
Note 10: Fiscal pear - In April, 1983 the members of the Board of
Directors voted to change the fiscal year from hlarch 31, to
September 30. As a result, short period financial statements
covering the six months ended September 30, 1983, have been.
prepared. Budget and prior year figures cover a 12-month
period. In addition, the official name was changed to Trophy
Club hlunicipal Utility District No. 1 from Dentoil County
Municipal Utility District No. I..
SUPP1,EMENTARY SCHEDULES
LLITY DISTRICT NO. 1
CASH AND TEMPORARY
ALL FUNDS
September 30, 1983
Totals
(memorandum only)
General Debt Caaital Period ended Year ended
water and service projects September 30, March 31,
sewer fund fund fund 1983 1983
;s provided 262,755 632,159
iitures 223,943 320,175
10,005
vat er
TROPllY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
GENERAL MNG-TERII DEBT SERVICE REQUIREhIENTS - BY YEl\RS
As 01 September 30, 1983
Series 1976 Series 1980 Series 1983
Due during
1isc:rl years Principal Interest Principal Interest Principnl Intcrest Totul annual
ending due due due due due due requirements
September 30. hlarcll 1 September 1 Total blvrch 1 Septcmbcr 1 Total March 1 September 1 all series -
20,000
20,000
25,000
25,000
30,000
30,000
35,000
40,000
'10,000
45,000
50,000
55,000
GO, 000
65,000
70,000
80,000
85,000
95,000
105,000
115,000
125,000
135,000
150,000 - -
Cash and temporary investments balances
at hlul.ch 31, 1983:
Debt service fund -723
Cash and temporary investments balunces
at September 30, 1983:
Debt service fund SJ2&l.3,.732L .
Interest rate
TROPHY CLUB hIUNICIPAL UTILITY DISTRICT NO. 1
ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT
For the period ended September 30, 1983
Dates interest payable
hlaturity dates
Bonds outstanding at
beginning of current
period
Bonds sold during
current period
Ret irernents: principal
Bonds outstanding at
end of current period
Retirements: interest
Paging agent 's
name and address
Bonds voted:
$12,344,217
Bond issues
Series Series Series
1976 1980 1983 Total
a. 75% 8.85% s. 00%
to 9.25% to 9.50% to 10.00%
None None None None
Series 1976: InterFirst Bank/Fort Worth
Fort Worth, Texas
Series 1980: InterFirst Bank/Fort Worth
Fort Worth, Texas
Series 1963: InterFirst Bank/Fort Worth
Fort \Vorth, Texas
Bonds appi-oved:
$6,765,000
Bonds sold:
$6,765,000
Funds
Debt service
fund
Certificate
of deposit
Certificate
of deposit
Certificate
of deposit
Certificate
of deposit
Totals
General water
and
sewer fund
Certificate
of deposit
Total -
all funds
TROPHY CLUB hlUNICIPAL UTILITY DISTRICT NO. 1
SCHEDULE OF TEhlPORARY INVESTBIENTS
For the period ended September 30, 1983
Accrued
interest
Identification Balances 'eceivable
oy certificate Interest Maturity at end of at end of
number rate date period period
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
ANALYSIS OF TAXES RECEIVABLE
As of September 30, 1983
Taxes receivable at beginning of period
Adjustments
Total to be accounted for
Less collections :
Prior gears' taxes
Taxes receivable at end of period
Taxes receivable by pears
1978
1979
1980
1981
1982
Property valuations
Property valuations :
Land
Improvements
Personal property
Exemptions
Total valuations
Tax rate per $100
valuation
Five pears ended March 31.,
(in thousands)
1983 1982 1981. 1980 1979 - - - - -
$ 21,503 $21,731 $21,366 $17,653 $15,571
58,482 26,304 17,450 9,277 4,189
232 120 68
TROPI-IP CLUB AIUNICIPAL UTILITY DISTRICT NO. 1
ANALYSIS OF TAXES RECEIVABLE
As of September 30, 1983
(continued)
Property valuations (continued)
Five years ended March 31,
(in thousands)
1983 1982 1981 1980 1979 - - - - - -- --__
Tax rolls ,--$447,989 ,' (1) (1) (1 (1
. . ... .. . . ...
For the period ended September 30, 1983: All taxes
Percent of current taxes collected to current taxes levied None (2)
Percent of current and delinquent taxes collected
to current and delinquent taxes outstanding at the
beginning of the tax period
(1) The audits for 1979-1982 were prepared by other auditors and this
information was not included in the 'eports; consequently, it is
not provided.
(2) No taxes were levied during the short period.
TROPIlY CLUE hIUNICIPAL UTILITY DISTRICT NO. 1
ANALYSIS OF ORGAKIZATIONAL COSTS
For the period ended September 30, 1983
Balances
at beginning
of period
Addit ions
(decreases)
Balances
at end
of period
Organizational costs -
creation period
Engineering and surveys
Filing fees, licenses, legal
not ices, and permits
Legal fees
Director fees and per diem
Other costs
Total organizational costs -
creation period
Organizational costs -
construction period
Legal fees
Financial consulting fees
Operating expenses
Bond interest expense
Amortized bond discount
Total organizational costs -
construction period
Total organizational costs
Amounts provided:
For district organizational
costs - creation period by
construction fund
For district organizational
costs - construction period:
By capital projects fund
By debt service fund
Total district organizational
costs - construction period
Total provided
TROPHY CLUB LlUNICIPAL UTILITY DISTRICT NO. 1
ANALYSIS OF CH.ANGES IN GENERAL FIXED ASSETS
For the period ended September 30, 1983
General fixed assets:
Land
Buildings
Water system
Sewage system
Drainage system
Machinery and equipment
Autos and trucks
Furniture and fixtures
Engineering fees
Construction in progress
Total
Additions provided by:
Debt service fund
Contributions by developers
Contributions by general
mater and sewer fund
Tot a1
Balances
at beginning
of period
Addit ions
(deletions)
Balances
at end
of period
Amount Percent of fund total revenue
Period ended
Year ended March 31, September 30, Year ended March 31,
33 - 1982 1981 1980 1983 - 1983 - 1982 - 1981 - 1980 - - - -
Amount Percent of fund total revenue
Period ended
Year ended March 31, September 30, Year ended March 31,
3 - 1982 1981 1980 1983 1983 1982 1981 1980 - - - - - - - -
Insurer
Type of Policy
corporation clause
Amount of coverage Name stock/mutual co-insurance
$ 10,000 Fidelity and Deposit Stock None
10,000 Fidelity and Deposit Stock None
10,000 Reliance Insurance Company Stock None
10,000 Reliance Insurance Company Stock None
190,800 Reliance Lloyds Stock 90%
1,000,000 Canal Insurance Company Stoclc None
1,000,000 International Surplus Lines
Insurance Company Stock None
15,000 United Pacific Insurance
Company Stock None
16,500 United Pacific Insurance
Company Stock None
L-84 $100,000/$300,000 Planet Insurance Company
$100,000
L-84 $250,000/$500,000 Planet Insurance Company
$100,000
Stock
Stoclc
None
None
ICIPAL UTILITY DISTRICT NO. 1
INISTRATIVE PERSONNEL AND CONSULTANTS
ptember 30, 1983
ess: P. 0. Box 130, Roanoke, Texas 76262
Term of office Fees and
elected and expense Resident
expires or reimbursement of
date hired 09-30-83 Title at year-end District?
04-03-821 Per diem President Yes
04-07-84
04-02-831 Per diem Vice-president Yes
04-02-85
04-02-83 1 Per diem Secretary /Treasurer Yes
04-02-85
04-02-831 Per diem Director
04-02-85
07-20-821 (1) Per diem Director
04-07-84
ancy created by a resignation.
Yes
Yes
business or family relationships
exas Water Code) with major landowners
h the district's developer or with any
nsultants.
lICIPAL UTILITY DISTRICT NO. 1
IINISTRATIVE PERSONNEL AND CONSULTANTS
!ptember 30, 1983
( continued)
trict
Term of office Fees and
elected and ex~ense Resident
espires or reirnbksement of
date hired 09-30-83 Title at year-end District?
12-15-82 $ 9,315 Genera1 manager No
07-18-83 $ 5,000 General manager No
04-01-81
Incept ion
Contract
$ 8,998 Assessor-collector
$ 3,267 Legal counsel
TROPHY CLUD h1UNICIPAL UTILITY DISTRICT NO. 1
QUESTIONNAIRE TO BE COhlPLETED BY AUDITOR
For the period ended Se~tember 30, 1983
1. At the time that your firm was 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 Account-
ing Manual made available to you?
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 expenditures
and revenues?
b. Record expenditures and revenues according to
GAAP and consistent with the type of accounting
system utilized?
c. Maintain the double entry
system of accounting?
d. Adhere to applicable provisions of the Water
District Accounting Manual?
3. Did the Board of Directors of the water district
impose on your firm any audit requirements in addi-
tion to those stated in the Annual Audit Report
Requirements?
4. Did you identify, during the course of your esarni-
nation 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?
If Yes is checked for Question 4, have these topics
been discussed in a Management Letter to the water
district's Board of Directors?
5. Did you obtain representation from the Board of
Directors of the water district that all records of -
the mater district were made available to you for
your examinat ion?
6. Did the \\later district:
S --
Yes No
x - -
Yes No
x - -
Yes No
x - -
Yes No
S - -
Yes No
x - -
Yes No
2: - - Yes No
x - -
Yes No
a. Use the capital l~rojec~s fund and debt service
fund only for purposes authorized by the Board
TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1
QUESTIONNAIRE TO BE COMPLETED BY SUDITOR
For the period ended September 30, 1983
(continued)
G. Did the water district: (continued)
of Directors of the water district and/or
within the provisions of the applicable bond
'esolut i-ons?
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?
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 Employees
Retirement System?
f. hlake remittances of Social Security taxes
according to the terms of the contract for
Social Security coverage with the Social
Security Division of the Texas Employees
Retirement System?
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. Note: A management letter is an audit scope re-
quirement of the Water District Accounting Manual.
a. The date of the most recent managernent letter
was November lG, 1983.
b. Were recormnendations explained to and discussed
with administrative officials of the water
district?
X --
Yes No
x - -
Yes No
X - -
Yes No
(1) - -
Yes No
x - -
Yes No
x --
Yes No
x - -
Yes NO
x --
Yes No
x - -
Yes No
(1) No intergovernmental transactions
TROPHY CLUB JlUNICIPAL UTILITY DISTRICT NO. 1
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
For the period ended September 30, 1983
(continued)
c. Is there evidence indicating that the previous
year's recommendations have been or are being
implemented?
8. The Texas Water Code makes specific provisions
relating to security provided by depository banks.
After consideration of the applicable laws pertain-
ing to the specific water district, did the deposi-
tory bank provide adequate security of the correct
type?
Please indicate for - each depository
a. The name of the depository bank - Northwest Bank
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 period
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)
a. The name of the depository bank - InterFirstI
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 period
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 more
than one assessor-collector.
10. \'!as the tax assessor-collector bonded as required
by law?
X - -
Yes No
X --
Yes No
None -
$514,192
05-31-83
None -
x --
Yes No
TROPHY CLUB b.lUNICIPAL UTILITY DISTRICT NO. 1
QUESTIONNAIRE TO BE COMPLETED BY AUDITOR
For the period ended September 30, 1983
(continued)
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 honded depository?
12. We (check one) :
a. Actually examined the records of the tax
assessor-collector
b. Received written co11firmatio11 for tax data
from the tax assessor-collector
c. Accepted tax data furnished by the district's
administrative offices
13. Were local tax 'evenues (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 legis-
lation under which the district mas 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. Full and complete explanations and/or references to
notes, schedules (or comments in the auditor's report
letter) for responses marked (*).
(2)
Daily
x - -
Yes No
S --
Yes No
(2) Receipts are deposited as received into district account
CERTIFICATE OF THE BOARD OF DIRECTOBS
Trophv Club 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 period ended September 30, 1983, was
received by the Board of Directors on the day of
1984, and was reviewed and ( ) approved; ( ) disapproved at a meeting
of the Board of Directors of the Water District on the day of
, 1984.
Signature of Board Secretary Signature of Board President