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Home My WebLink AboutFY Ended September 30, 1985TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES YEAR ENDED SEPTEMBER 30, 1985 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 taxes receivable Analysis of organizational costs Schedule of notes payable Analysis of changes in general fixed assets Comparative statement of revenues and expenditures - period and three 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, TEXAS 76107 817/338-0061 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 Roanoke, Texas We have examined the accompanying combined financial statements of Trophy Club Municipal Utility District No. 1 at September 30, 1985, and for the year 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, 1985, and the results of its operations for the year 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 11, 1985 COhlBIliED BALANCE SIIEET - ALL FUND TYPES AND ACCOUNT CROUPS September 30, 1965 ASSETS - Currclit ilssets c:is1,: UilreSLriCted cilsli Restricted C:LS~~ Bc'cuonls receivi~ble ;and iiccrucd revenue Pl."i)ilill ~"S,,,~~,,CU 11>icrf11nd 1~0ccii~:lblcs Ccnernl l'iseri nssels (Notes 3, '1 and 8) Intxt~~iblc illid ~Lher USSC~S Pr.uvisiua lor bundctl debt Aliiouiai nvsilnblc for retirement of gcncl.;ll long-terin dcbt Ai~iounl i.o bc pz.ovirictl for rciircment "I ~el,cl':il inng-ler,,, dcllL Govcrnri~cnt:cl fund tspes Account groups Goncrvi Debt CapiLnl Ccncrni Gonernl W~terund Service Projects fiscd long-term Seirar Fund iiuiid Fund nsseis debt Totills (rncmoranduin oiilv) Yenr cndcd Yenr cndiid Seilternber 30, Scptcrnbcr 30. 1985 1964 COhlRINED BALANCE SIIEII'I' - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1985 (Continued) Current liabilities Accounts pnyable and accrued cspenses ncfuhdablc dcposii.~ Interrond pnsr~blcs Bonrls due aithin one penr IElote 51 'Yotill clri'l'ei~l linbililics Cn#iiinii.m~?nl.s (Note 7) FUND EQUITY Ilivesriiicnt in gci>e~.:tl fined esscts Fund bulnnces: nescrvcd Ior custonicr deposits Reserved Ior dcbt service Unrcslricted 'Total Iund bn1:~nccs Total Iund equity Totvl lii~bilities and fond eq~~ity Totals Governmental fund types AccoonL croups (memorrrnduin only Gencrtil ncbt CBI,? tnl Generc~l. General Year cndcd Yc:ir' onduct Wnter and Service Pro,jects iised lol)g-1.crii( ScpLclilber 30, Scpi.emher 30, Fund Sciiwr Fund - Fund assets debt 1985 198'1 152,226 172,002 15,282 - . 339,510 350,771 - . . 60,750 -- - GS, '100 60.750 - 22,102 - - - - - 22,158 22.1% . . - 6,575,000 ,57500 (i .69O.000 152,226 19.1,1n4 15,282 7, 1:11, :12:1 - G,G.G:(S,iSO G,V97,362 'TROPIIY CLUB hlUNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEMENT OF REVEII'UES , LSPENIIITURES , AND CliANGES IN FUND BALANCES - ALL GO\'CRIiMENTAL FUMD TYI'LS Ycar ended Scptcsber 30, 1985 Tolnls GOYCI.I)IIIE~~~~ Iund types (iscmornndum only) General Dcbt Capil:tl Year ciidcri Year enrlcii Wxter :md Service Projccls Segtcmbcr 30, Scptcmbcr 30, Fund Sewer Fund l'unil 1.985 1988 RCI-CIIU~S Service sovenues (Note 6) Tail connection revcnucs 'Pns revenues (NoLc 9) Pen:ill.p revcnuc Espcnsc i.cisibu~.icnleili.s Siiscelli~~icous 11~11~ !v:~i.cv ]purcI~:bst:s P:i)'rol l cxpcnscs Employec benefits Professional Iecs Cilnitiil o~l.lii~ h1isccll:incuils mebr service: Principnl reiii'clscnl Interest and fiscnl chur~cs Escess (deficiency) of revcnucs over cspcndiiures TIlOPliY CLUB :,IUNICIPAIl UTILITY DISTRICT NO. I COhlBINEU STATELIENT 017 REVENUES, EXPENDITURES, AN11 CIIANGES IN FUND RALANCES - ALL GO\'ERNhlENTBL TUNE TYPES Year ended September 30, 1985 (Continued1 Other finnncin~ sources (uses): Tot;~ls Governiscntal fund types (scmorandusi on1 y ) Generill Debt Cilpit:~l Scar entled Yctir ended IVarer and Service Projeota Septernbcr 30. Sclltexnber 30, Scwer Tuni Fund Fulill 1985 1.8811 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND Year ended September 30, 1985 General Water and Sewer Fund Variance favorable - Budget Actual (unfavorable) Revenues : Water and sewer service (Note 6) Inspect ion and tap fees Miscellaneous and carryover Total revenues Expenditures : Water and Sewer Department: Salaries, wages, benefits and taxes Water purchases and power (water, sewer, utilities and telephone) Consumable supplies Maintenance and repairs Other expenses Total Water and Sewer Department Administrative : Salaries, wages, benefits and taxes Professional fees: Legal Auditor Engineering Maintenance Printing and off ice supplies Post age Utilities and telephone Insurance and bonds Travel and seminars Legal notices and publications Other expenses Total administrative Capit a1 improvements TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND Year ended September 30, 1985 (Continued) General Water and Sewer Fund Variance favorable - Budget Actual (unfavorable) Expenditures: (continued) Fire Department : Professional fees - legal Fuel and supplies Maintenance and repairs Insurance and bonds Equipment lease Capital improvements Other expenses Total Fire Department 36,188 Total expenditures 711,690 Excess (deficit) of revenues over expenditures 32,683 Other financing sources: Reimbursement of expenditures 164,024 Transfers in 36, 188 Total other financing sources 200,212 Excess (deficiency) of revenues and other financing sources over expenditures and other uses 232,895 Fund balance at beginning of year 207,367 Fund balance (deficit) at end of year $ 440,262 See accompanying notes. - - /- TROPHY CLUB WJNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1985 1. Summary of accounting policies a. Description of funds - The District has established a number of funds, in conformance vith generally accepted accounting prin- ciples 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 specifi- cally levied 01- 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 Fund - To account for the acquisition of capital facilities being financed from bond proceeds. Account groups General Fixed Assets Accounts - To account for property and equipment of the District. General Long-term Debt Accounts - To account for the unmatufed principal of outstanding bonds. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1985 1. Summary of accounting policies (continued) b. Basis of accounting - The District maintains its accounting records on the modified accrual basis whereby revenues and expenditures are recognized 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. 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 "kLemorandum Only" to indicate that they are presented only to facilitate financial analysis. 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 are such data comparable to a consoli- dation. Interfund eliminations have not been made in the aggregation of these data. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1985 1. Summary of accounting policies (continued) f. Retirement plan - The District adopted a defined contribution retirement plan in 1984. Under the terms of the plan, a certain percent of eligible salaries is contributed to the plan. 2. Creation of district - Trophy Club 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 Trophy Club Uunicipal 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. 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 of bond interest during the construction period. This bond interest has been capitalized as an organizational cost for the construction period. 4. Organizational costs - The District, in conformance with require- ments 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 bonds, bond interest and amortized bond premium and discount, losses on sales of investments, accrued interest on investments purchased, attorney fees and some administrative expenses until construct ion 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. TROPHY CLUB HUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1985 5. General long-term debt - At September 30, 1985, the District's long-term debt consisted of: Range of General interest long-term Current bng-tern Maturity rates debt maturities maturities Water worlrs and sever system combination unlimited tau and Serially revenue bndls through 8.75 - series 1976 2006 9.25 $1,4GO,OOO $ 25,000 $1,435,000 Water \mrlcs and sewer system combination unlimited tax and Serially revenue bncls series 1980 through 8.60 - 2007 9.50 1,980,000 30,000 1,950,000 Water works and saver system combination Serially revenue lsoncls through 8.00 - series 1983 2002 10.00 3,135,000 75,000 3,060,000 $6,575,000 $130,000 $6,445.000 A schedule of bond maturities for the nest five years is as follows : Tax and revenue bonds Year series 1976 - 1986 $ 155,456 1987 153,269 1988 155,863 1989 153,238 1990 155,394 Thereafter 2,501,134 Less interest 1,914,354 Principal 3 1,460,000 Tas and revenue bonds series 1980 $ 213,975 216,007 212,770 214,282 210,563 3,676,517 Tax and revenue bonds series 1983 3 364,782 363,583 366,782 369,183 370,645 4,544,532 Total $ 734,213 732,859 735.415 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1985 5. General long-term debt (continued) Tax and revenue bonds authorized and unissued as of September 30, 1985, amounted to $5,579,217. 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 provisinns 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 September 30, 1986. 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. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1985 6. Water and sewer service rates - The Trophy Club Municipal Utility District No. 1 has established the following water and sewer service rates : Tap fee $325.00 Sewer inspection fee 15.00 Water service only: Treated water: First 4,000 gallons of water used - minimum bill Next 10,000 gallons of water used - each 1,000 gallons Each 1,000 gallons of water used thereafter Untreated water - each 1,000 gallons of water used Irrigation water - each 1,000 gallons used - 1.00 Standby fee per month 6.00 Sewer charge pey month - minimum bill 7.50 7. Co~nrnitmellts - The District has an agreement with a developer whereby the developer awards contracts and makes progress payments to independent contractors for the construction of worlrs, improve- ments, 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. Construction of a maintenance building was in progress at September 30, 1985. The District plans to fund their portion with funds from the General Fund. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1985 8. Changes in general fixed assets - A summary of changes in general fixed assets follows: Balance September 30, Additions 1984 (deletions) Land $ 132,541 $ 7,531* Buildings 10,962 61,944 Water system 2,403,503 - Sewage system 1,727,062 - Drainage system 972,898 - Machinery and equipment 58,638 34,983 Autos and trucks 83,290 19,250* Furniture and fixtures 18,519 18,566 Engineering fees 761,690 - Capitalized construction period costs 522,688 - Construction in progress 15,766 (15,766) $6,708,157 $126.538 *Expenditures from general water and sewer fund Balance September 30, 1985 9. Property tases - 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 ta.x rate is a.595 per $100 of assessed valuation and assessed valu- ation is approximately 100% actual value. 1.0. Retirement plan - The District contributed $7,500 to the newly established pension plan. As the plan was established in late 1984. actuarial valuations are not available. TROPIIY ci,un II~INICIPAL U'I'ILITS DISTRICT no. 1 ANALYSIS 017 CHANGES IN cfisri AND TEIIPORARY IAVESTAIENTS - ALL FUNDS Ycnr ended Sepicabcl. 30, 1985 Totals ~~ ~ ~ -- - ~ GCIICI.BI Debt Caplrnl Yenr ended Year enricd 1i'nLrr and Scrvice Pl.o.jects Scl>Lcmbcr 30, Sejiicsiber 30, F",,d Seirel. fuild - Fund 1985 _ 198.1 - dl31il ici~iic,ils n l c:isli :ind Lcepc~i-or? ii~i~rsiiiii:ill s - Cn~li d~:bursi.libonts rilr cul'l'clll ~.ipr.ndiiiircs 507.213 G27,753 - 1, 13.1 ,sli,:I; 1,1.77,219 Cnsll l.i.;~ii:;lci's in nLllci' llilids 35,054 . :3S, 0.54 32,925 l';iy~nei~i ul bi~iiii pl'ibicii,:~ 1 - 115.00l1 . 115.0011 - Refv~ud or CLISLC~~IUC?~ ~lc~,c!sil.s 1.5,581 . - 1S..i91 S, 9UiJ Riifund 01 L:,:; ~vcr~~~~yz~~e~~L~~ - - . . 1'urcll:ise of fired :n.sscl.s by Gcncr;i? 1i;itcl- :tnd Scscr 1:01111 5,!L? L -. z ... 71.170 : TROIJIIY CI,UB LlUNICIPiiL U'PILITY DISI'IIICT NO. 1 GENERAL LONG-'PER!,$ DEBT SERVICE BEQUIIIELIENTS - RY YEARS Peim cadcrl September 30, I985 Series I976 Series 1980 Series 1983 ~ ~~ Due during fiscal y'n1.s P~.incip:tl 1nl:ercsi. Pl.incil>iil 111Le1~est I'riocipnl Intercst Total :ronunl cndii~g due due clue ~IUC due due requi~~crh~ent.~ Septcrnlier 30, hl:~~~ch 1 - Scplonbei. 1 hlnrcb 1 S~P~CIIIIJCI~ 1 hl:irch 1 SopLe~nbcr I Tiltai nll series Cosh :ind 1esipor:rrll inilcslacnt b:ll;inccs at Septcmbcr 30. 1981: Debt Service Pond S ld~l~12~i~ Cnsll ilnd icmpol:ily illvcslnlcnt billnilces n1. ScpLcinber 30, 1985: Dcbt Service Funrl S&I>~,O&:~ SUPPLE\1EKrYARY SCHEDULES - TROPHY CLUB NUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT Year ended September 30, 1985 Bond issues Series Series Series 1976 1980 1983 Tot a1 Interest rate 8.75% 8.85% 8.00% to 9.25% to 9.50% to 10.00% Dates interest payable 311; 911 311; 911 311; 911 Maturity dates 3/1/82 3/1/84 3/1/85 to 3/1/06 to 3/1/07 to 3/1/02 Bonds out standing at beginning of current year Bonds sold during current year - Retirements : Principal 20,000 30,000 65,000 115,000 Bonds outstanding at end of current year 1,460,000 1,980,000 3,135,000 6,575,000 Retirements: Interest 132,425 186,690 295,383 614,498 Paying agent's name and address Series 1976: InterFirst BankIFort Worth Fort Worth, Texas Series 1980: InterFirst BankIFort Worth Fort Worth, Texas Bonds voted: $12,344,217 Series 1983: InterFirst BankIFort Worth Fort \Voyth, Texas Bonds approved: Bonds sold: Funds Debt Service Fund Certificate of deposit TROPHY CLUB IvlUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF TEbIPORARY INVESTbIENTS Year ended Septembey 30, 1985 Certificate of deposit Certificate of deposit General Water and Sewer Fund Accrued interest Identification Balances receivable or certificate Interest Maturity at end at end number rate date of year of year Certificate of deposit Certificate of deposit TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF TAXES RECEIVABLE September 30, 1985 Taxes receivable at beginning of Adjustments 1984 tax roll Total to be accounted for Less collections: Current year Prior years Taxes receivable at end of year Taxes receivable by years: 1979 1980 year Property valuations : Five years ended September 30, (in thousands) 1985 1984 1983 1982 1981 - - - - - Land $ 21,235 $ 21,702 $ 21,503 $21,731 $21,366 Improvements 73,070 59,731 58,482 26,304 17,450 Personal property 2,113 1,863 - 232 120 Exempt ions (17) (15) (12) (4) - Total property valuations $ 96,401 $ 83.281 $ 79,973 $48,263 $38.936 Tax rate per $100 valuation Tax rolls $576,484 $496,667 $447,989 (1) (1) For the year ended September 30, 1985: All taxes Percent of current taxes collected to current taxes levied 97% Percent of current and delinquent taxes collected to current and delinquent taxes outstanding at beginning of tax year 96 % (1) The audits for 1981-1982 were prepared by other auditors and this information was not included in the reports; consequently, it is not provided. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF ORGANIZATIONAL COSTS Year ended September 30, 1985 Organizational costs - creation period Engineering and surveys Filing fees, licenses, legal notices and permits Legal fees Director fees and per diem Other costs Total organizational costs - creation period Organizational costs - construct ion period Legal fees Financial consulting fees Operating expenses Bond interest expense Amortized bond discount Total organizational costs - construct ion period Total organizational costs Amounts provided: For district organizational costs - creation period by construction fund For distyict organizational costs - construction period: By Capital Projects Fund By Debt Service Fund Total distpict organizational costs - construct ion period Total provided Balances at beginning of year Addit ions (decreases) Balances at end of year TROPHY CLUB I~lUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF NOTES PAYABLE September 30, 1985 Payable Accrued Interest Maturity at end interest rate date of year on notes General long-term debt: FMC Corporation Totals - All funds TROPHY CLUB bKJIIUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS Year ended September 30, 1985 General f ixed assets : Land Buildings Water system Sewage system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees Construction in progress Additions provided by: Debt Service Fund Contributions by developer Contributions by General Water and Sewer Fund Balances at beginning of year Addit ions (deletions) Balances at end of year 0 " - " i 9 U * 0 y 30 on - Si m D -aE OW" .d w kc m o %V1 x >< >a >* - DD? n liy anl ?I . , yi 11 1 m a0 ,+c 0 -nn ,rim0 i.1 m me, , 0 i 3 t-i 4 0 n n m i;, m - 0 r( -I i - 'I'IlOPIIY CLUD BUNICII'AI. U'L'ILITY DISTRICT NO. 1 COLIPARATIVE STATEhlENT OF REQENUES AND EXPENDITURES Years ended September 30, 1985 and 1884 and period cnded September 30, 1883 nnd two years ended #arch 31, 1983 and 1982 (Continued) Cnpitul Projects Fund Rcveoucs C~llitnl alltl np Total Cap1 lill P1.o.iccl.s Fund cspeiidi Iiurcs Excess (dcficicocy) of CapiLnl I~l~o.jccts Fund vcvcaucc ovcl. cspcadltiires nvcrngc nnnuiil debt service rcquircs,eni 101. unpaitl pi.incip:cl and inLCrest Amount Perccnt of fund total revenue Pear -:nded Period ended Year ended Year ended Period ended Yens cndcd ScpLcli#l,er 30. Scptclnbcr 30, -- Llnrcli 31, Septemllcr 30, SepLcrnbcr 30, hlni'cl, 31,. 1965 - 1084 1983 1983 - - - - 1982 1985 1984 - -. - 1983 1.983 1982 - - Exccss reucoucs from Gcncr:iI Fund nnd DebL Scl.vice Fond before e.;],cnditurcs for rlel~t scrricc 6n4,nSO 634,RIO 100.211 398,231 :188.~159 Coverage (excess revcnucs ns adjusted divided by annunl dcbL sersicc 1.cqlliroiico t ) 0.82 0.17 0.15 1.07 1.05 Nuniller of water onrl scivcr coanectioos .~~ :ti curl 01' yc:lr 1,114 5 1 7 7 11 750 (1) 'Total ilrnounL oS ir:lte,' billed to cusroiscrs (lo Lhoos:~ods of ~nllons) 268,208 210.767 94,885 121.918 (1) TOLR~ anioltilt oS wuLci. poisped into system (in Lhousonds 01' eallons) 266,765(2) 260,102 107,445 152,531 (1) PCI.CFIITII~E of ivi?Ler billcd 1:o IY~~CI. puml'cd 100.9%(2) 75.25% 88.32% 79.931 (1) (1) The audits for 1981-1882 n.erc pr~pnrerl by oilier auditors and tllis inforention !i.os not included in the rcports: conscquenily, it is not provided. (2) During 188'1-1985, tlic cnlibrntion crjuiprnciiL lhad llicclinliicnl salfunc1:ions. As R result, Lhc Lotnls oi {rater pnilil,cd into Chc system are not correct. 0 3 00 i C .* = 2 - .c ' C .4 % E 8.. U 9.3 3W ,. .i 3 3 Y mc = C *" i : n C.* 0 CC * CIS U 0 CI-i 2 LTO U: - " .? "ache w CYI iEDiE E i v - z-cin * - 0 .c=-.r,= 0 '0 4 E .zho2h 4) 2 * h cw Ci EL d .... iri.32.i Y mCI : h33U'iW .n -5 d 'I.ICO.-C 3 00 .ii30E30 0 CO i iWO*OD* C U1 m ."cmCCm& 3 10 = ." b" 4 m : - .* + 0 -r rl: Ci rl - * 0 U G .- i' urn* .i,? -em 03s C U .Il 0 A C d 0 1 0-21 bE . COI hC0 i i 0 0 d 0 Vi il w o a r. 2. = r; c r c : : c C 4 L1 m OOCO O OD co ZZZZ Z ZZ ZZ 0 0 ZZ : Y z Lr Y 3 * 3 * ISXI I XI OUUU U U> 3U + r: ,, i! 0 0 - 0 05 30 " * d 4 'i 4' mmmm r rnza v,m s 3 - - - - 0 " n - .slricl~nsui~n s,l3i.ils~a a~ll 30 :Ciic r[lrn\ .TO -rscIo[anap s,:jo:.r~sra rl .roC-cul L[T'F.;~ (ap03 .ral?:!,\ su:<aJ, aqill 'Cq pau-pjap se) sclrr[sr!o~~e[a.i ,S[FUII:J iz3T.ITSra pu;?-.[eaiI le a~x~& GS-OE-GO pa~rq a~~p 3 0 luauas.Tnqwra.r .TO sa.T?dsa pue ~uap~sa~ asuaclsa pue pawa.[a a3rjjo saaj 30 wLa~ TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1985 1. On the following chart, provide the appropriate check marks for each listed accounting record. Under the "USED?" bloclc for each record indicate either "NO" !it is not used) or "YES" (it is used). Under the "HOW KEPT?" block indicate if records are maintained manually, by hand, or if data are input to a computer. Under the "WHEN UPDATED?" block show how often entries are made to each record. If entries are made less often than monthly, write in the fre- quency under "How Often?". Indicate who provided the information for the table below: Sherry Johnson USED? HOW KEPT? WHEN UPDATED? BY BY HOW RECORD NO YES HAND COMPUTER DAILY WEEKLY MONTHLY OFTEN? --- Description of accounts X X X Chart of accounts X X X General journal X X X Cash receipts journal X X X Cash disbursements journal X X X Check register X X X General ledger X X X Customer subsidiary ledger X X X Fixed assets ledger X X Bank reconciliation X X Trial balance X X 2. Does the district use double entry accounting? 3. What is the usual location of the accounting yecords? 100 Waterplant Road, Trophy Club, Texas 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 -- YES NO x -- YES NO If Yes is cheeked for Question 4, have these topics been discussed in a Management Letter to the water district's Board of Directoys? TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE CObtPLETED BY AUDITOR Year ended September 30, 1985 (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 examinat ion? 6. Did the water district: a. Use the Capital Projects Fund and Debt Service Fund only for purposes authorized by the Board of Directors of the water district and/or within the provisions of the applicable bond resolutions? 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. 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 Employees Retirement System? g. Deposit receipts to the proper funds kept by the approved depository bank? 11. Draw checks only on funds approved by the Board of Directors and signed by authorized personnel? X -- YES NO X -- YES NO X -- YES NO A -- YES NO (1) -- YES NO X -- YES NO X -- YES NO .? -- YES NO X -- YES NO (1) No intergovernmental transactions TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1985 (Continued) 7. Note: A management letter is an audit scope requirement of the Water District Accounting Manual. a. The date of the most recent management letter was November 11, 1985. b. Were recommendations explained to and discussed with administrative officials of the water district? c. Is there evidence indicating that the previous year's recommendations have been or are being implemented? X -- YES NO X -- YES NO 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 -- X bank provide adequate security of the correct type? YES NO 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) $300,000 c. Amount of bond 01- other security pledged as of the end of the fiscal period (par value) $650,000 d. Largest cash balance $781,836 e. Date of largest cash balance 02-26-85 f. The amount of bond or security pledged at the time of the largest cash balance (excluding F .D. I. C. coverage) $600,000 a. The name of the depository bank - First National Bank of Grapevine b. Amount of F.D.I.C. coverage (if member bank) $100,000 c. Amount of bond or other security pledged as of the end of the fiscal period (par value) None d. Largest cash balance $100,567 e. Date of largest cash balance 08-27-85 f. The amount of bond or security pledged at the time of the largest cash balance (excluding F.D. I .C. coverage) None TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1955 (Continued) a. The name of the depository bank - InterFirstIFort Worth b. Amount of F.D.I.C. coverage (if member bank) $100,000 c. Amount of bond or other security pledged as of the end of the fiscal period (par value) $2,200,000 d. Largest cash balance $1,855,303 e. Date of largest cash balance 02-26-85 f. The amount of bond or security pledged at the time of the largest cash balance (excluding F.D.I.C. coverage) $2,200,000 9. The water district's taxes were collected by a district employee. 10. Was the tax assessor-collector bonded as required by law? 11. What was: a. The tax assessol--collected bonded for? $ 10,000 b. The greatest amount of the district's taxes in the tax assessor-collector's possession at any one time? (2) c. The frequency of tax receipts deposits with the bonded depository? Daily 12. We (check one): a. Actually examined the records of the tax assessor-collector X b. Received written confirmation for tax data from the tax assessor-collector c. Accepted tax data furnished by the district's administrative off ices (2) Receipts are deposited as received into district account TROPHY CLUB MIJNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1985 (Continued) 13. 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. Full and complete esplanations and/or references to notes, schedules (or comments in the auditor's report letter) for responses marked (*). X -- YES NO X -- YES NO CERTIFICATE OF TIIE BOARD OF DIRECTORS Trophy Club Municipal Utility District No. 1 Name of \\'ater 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, 1955, was received by the Board of Directors on the 1 day of .-./:* ,., 4 q ,' !,I -' 1986, and was reviewed and ( ,l) approved; ( ) disapproved at a meeting of the Board of Directors of the Vater District on the 2-1 day of Signature of Board President