The URL can be used to link to this page

Home My WebLink AboutFY Ended September 30, 1988TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES YEAR ENDED SEPTEMBER 30, 1988 with REPORT OF CERTIFIED PUBLIC ACCOUNTANTS T4BLE 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 balances - 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 - five 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 El7/338-0061 DAVID E. WELCH JOE A. OILLARD 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, 1988, and for the year then ended listed in the foregoing table of contents under the caprion "Financial Section" Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of rhe accounting records and such other audiring 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 Nunicipal Utility District No. 1 at September 30, 1988, and the results of its operations for the year then ended, in con- formity with generally accepted accounting principles applied on a basis consisrent 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 17 through 36 are presenred for purposes of additional analysis and are not a 'equired 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 raken as a whole. November 10, 1988 TIIOPIIY CLUB IUII'ICIPAL UTILI'I'Y DISTRICT NO. 1 COIlElNED Btl1,AIiCE SIEET - ALL FUND TYPES AND ACCOUNT GROUPS September 30, 1.968 ASSETS - Toinls Governmenial Suiid iypc-5 ACCDUI)I GX*OUPS (eci~ioraoduni osl9) Gell~1.~1 DebL Cnpitul Gcncral General Ycar elided Year ended Il'ater niid Service Projecrs iiscd long-rcl.181 SepLernbcr 30, Seplonber 30. Se,i.el. Fuiid a- -- Fund - nsscts debt 1968 1967 l7C, BUG Sll, ti34 - . . 2158, 2.1LI lill, SliG 4 37 2,309 . . . 2,(1.15 13.354 -- -- 93ti.U3h 2CIS,S46 1 051 - I- ., .- . --L ...LlL!LLE% -LLLL . - i.-l8il.?02 . = _ - i, 4E!l, "2 . 7,.137,832 . 157,4E1 7. --z .____-: L ._____- - lG5,i)L)~l TROPiiY CLUB hlUNiCIPAL WILITY DISTRICT NO. 1 COAIBIKED BAliANCE SliEET - ALL FUND TYPES AXD ACCOUNT GROUPS Seprember 30, 1988 (Continued) LIABILITIES Currsiit liilbi li~i~s BCCUU~~S JXL)~ZL~~C lilid %CC~.UC~ espciises Refundable dejlosiis Inierfund pnpablcs Total current livbiliiics Notes papublr nrfcrl.cd incoirie Bonded dcbl payable (Note 5) Tulnl li&biliIies Coniini csir,,l i (fluie 7) FUND EQUITS Iniresi.melii in gencr:il riaed sssets Fuliri btilnncrs: ncscr~cd s~lr cusrumel- ~CIIOS~LS nescr\,ud Ior clebr service Unreirricred Toliils Goveran>enial fund rypes Account groups (iscmornodum oil l Gciicrnl Debt Capltnl Gsnernl Gencrt~l Year ceded senr ciidcd AnLcr and Service Projeers fixed long-rerm Scprembcr 30, Sepicslber 30, Sciver Fusid Fund iisscts debt 1988 - 1987 TROPliY CLUD hlUNICIPAL UTILITY DISTRICT NO. 1 COhlBINED STATEhlENT OF RLVLINUES, EXPENDITURES, AND CIIANCES IN FUND BALANCES - ALli GOVERNhlEKTAL FUh! TYPES Penr ended Scpicmbcr 30, 1988 lIcI'Cll"es Scrvice revenues (Note 6) Tap connection revenues Tux revenues (Note 9) Penalty revenue hliscellancoua lnrerest on temporary investments Special uaacssmcnts BUlli IlilTC1. Pill.cliaseS Fagroll cxpcnses Em~llouce bencfirs ~rofeisianul Ices Capirnl. ourlay ULilitice Recurring ogcroling c:<pcnscs Tns nssessor-collector hliscellnncaus Excess (deficiency) ol revenues orer espcndirures Tatnls CovernnlcnCnl fund types lmemorandum only) Geilcril Deb1 Cnpirnl Yoar ended Year ended \later and Service Projects September 30, September 30, Seivcr Fund __ Fund Fund 1988 1987 $1,065,028 12, GOO 104,649 36,303 16,798 42.386 TROPIIS CLUB LlUNlClPAL UTILITY DISTRICT NO. 1 COdIBINED STATEdlL'NT OF REI'ENUES, ESPL'NDITUnES, .AND Clihh'GES IN FUND BBLAIUCES - ALL GOI'ERNMENTAL FUhD TYPES Year eiided Sellte$nbcr 30. 1988 (Conrii,ued) l'uznls Governinenrnl iund rypes (rnesa~.nndnrn only ) Pfocceds of genernl obligation bond rcSinnnciog Onerorinc trnnslers in ~i>criiing transfers out 1Ir~nsi~i.s l'rom other muiiicil>al "ti lit]! distl'icis Cscess (dciicienc)) ot 1.erenucs and oibcr linoncing sources over r!apendi;ores and other usos TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND Year ended September 30, 1988 General Water and Sewer Fund Variance favorable - Budget Aczual (unfavorable) Revenues : Water and sewer service (Note 6) Inspection and tap fees Ad valorem tax revenues 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 Capital expenditures Other expenses Tozal Water and Sewer Department Adminiszrative: Salaries, wages, benefits and taxes Professional fees: Legal Accounting and auditing Engineering Maintenance Contract labor Printing and office supplies Poszage Utilities and telephone Insurance and bonds Travel and seminars Tax office contract services TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 COIvIBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL WATER AND SEWER FUND Year ended September 30, 1988 (Continued) - General Water and Sewer Fund Variance favorable - Budget Actual (unfavorable) Expenditures: (continued) Administrative: (continued) Legal notices and publications Repairs and maintenance Capital expenditures Bad debt expense Other expenses Toxal administrative Fire Department: Salaries, wages, benefits and taxes Utilities and telephone Dispatch Note payments Schools and training Uni f orms Fuel and supplies Maintenance and repairs Insurance and bonds Capital improvements Other expenses Total Fire Department Total expenditures Excess of revenues over expenditures Fund balances at beginning of year Fund balances at end of year See accompanying notes. -7- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1988 1. Summary of accounting policies a. Reporting entity - All pertinent documents, transactions, contracts, and correspondence with other governmental agencies were reviewed to determine the reporting entity. Based upon this review, only the activities of the Trophy Club Municipal Utility District No. 1 are included in this report. b. 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 Accounxing, 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: Government a1 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 disposirion of funds for paying interest and principal on general long-term debx . Capital Projecxs Fund - To accounr for the acquisition of capital facilities being financed from bond proceeds. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1988 1. Summary of accounting policies (continued) Account groups General Fixed Assets -4ccounts - To account for property and equipment of the District. General Long-term Debt Accounts - To account for the unmatured principal of outstanding bonds. c. Basis of accounting - The Distvict 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, which is recognized when due and tax revenues, which are recognized when received. d. 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 capiralized. e. Investments - Investments are carried at cost which approximates market. The District's in-tent is to hold these investments until maturity. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1988 1. Summary of accounting policies (continued) f. 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 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 consol- dation. Interfund eliminations have not been made in the aggregation of these data. g. 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 dist'ict - Trophy Club Municipal Utility District No. 1 was created by an order of the Texas Water Commission on March 4, 1975, and confirmed by the electorate of Trophy Club Municipal Utility District No. 1 at a confirma-tioa election held on October 7, 1975. The Board of Directors held its first meetlng on April 24, 1975, and the first bonds were sold 011 June 8, 1976. 3. Bond interest - In accordance with the bond resolution dated October 29, 1975, a porxion of the bond proceeds was del~osited into the Debt Service Fund for the payment of bond interesz during the construction period. This bond interest has been capitalized as an organizational cos% for the construction period. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEUENTS September 30, 1988 4. Organizational costs - The Diszrict, in conformance with require- ments of the Texas Water Commission, capitalized and charged zo orgallizatioll costs, for the creation period, all costs incurred in the creation of the District allowed by statute. The Texas Water 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 construction and acceptance or use of the first revenue producing facility has occured. As the District purchased its facilities already completed by the developer, only those costs funded by bond proceeds were capitalized. 5. General long-term debt - At September 30, 1988, the District's long-term debt consisted of: Ran= of General - interest long-term Current bug-tern Maturity rates debt maturities maturities Water worlis and sewer system combination unlimited ta~ and Serially revenue bonds r;kougll 5.50 - series 1987 2007 8.60 $5,535,000 $150,000 $5,385,000 TROPHY CLUB b1UNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1988 5. General long-term debt (continued) A schedule of bond maturities for the next five (5) years is as follows: Year - 1993 Thereafter Less interest Principal Tax and revenue bonds series 1957 - Tot a1 Tax and revenue bonds authorized and unissued as of September 30, 1988, 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 Diszrict, 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 sanirary sewer system. The provision of the bond resoluzions relaxing to debt service requirements have been met and the cash allocazed for these purposes is sufficient to meet debt service requirements for the fiscal year ended September 30, 1989. TROPHY CLW MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COIvIBINED FINANCIAL STATEMENTS September 30, 1988 5. General long-term debt (continued) The outstanding bonds are callable for redemption prior to mazurizy 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 in~erest. 6. WateT and sewer service rates - The Trophy Club Municipal Utilizy District No. 1 has established the following water and sewer service rates: Tap fee $350.00 Sewer inspection fee 25.00 Water service only: Treated water: First 4,000 gallons of water used - minimum bill Each 1,000 gallons of water used Each 1,000 gallons of water used in excess of 25,000 Untreated water - each 1,000 gallons of water used Irrigation water - each 1,000 gallons of water used Standby fee per month 7.00 Sewer charge per month - minimum bill Sewer charge per month - maximum bill Each 1,000 gallons of water used - in excess of 4,000 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 MOTES TO COMBINED FINANCIAL STATEMENTS September 30, 1988 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, 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. During 1988, the District made application with the Texas Water Commissioil to sell up to $1,587,000 in bonds. The actual amount has not been determined. 8. Changes in general fixed assets - A summary of changes in general fixed assets follows: Balance Balance September 30, Addit ions September 30, 1987 (deletions) 1988 Land .$ 140,372 $ - .$ 140,372 Buildings 223,086 - 223, 086 Water system 2,403,503 - 2, 403,503 Sewage system 1,730,757 - 1,730, 757 Drainage system 972,898 - 972, 898 Machinery and equipment 146,593 40,391* 189,984 Autos and trucks 119,916 10,97 9* 130,895 Furniture and fixtures 40,097 - 40,097 Engineering fees 763,324 - 763, 324 Capitalized construct ion period costs 522,688 - 522, 688 Construction in prog: 7 ess 374,598 - 374,598 $7,437,832 - $ 51,370 $7, 489,202 *Expenditures from general water and sewer fund TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COMBINED FINAiiCIAL STATEMENTS September 30, 1988 9. Property taxes - Property taxes attach as an enforceable lien on property as of January 1, are due Oc-cober 1, and become delinquent on February 1. Property taxes for the Districr are not limited as to rate or amount. The District's current tax rate is $. 417 per $100 of assessed valuation, which is approximately one hundred percent (100%) actual value. 10. Retirement plan - The District participates in a defined contribution retirement pension plan. All fulltime employees twenty-one (21) years old or older are covered after a preliminary period. Vesting starts after four (4) years. 11. Joint venture - The District and Gibraltar Savings Association are joint venturers in various assets used to provide water and sewer services to persons who live in Troply Club, Texas. Ownership of the assets is as follows: District Gibraltar percent percent Land on which treatment plant is located 60.0% 40.0% Water plant 23.6 76.4 Twenty-one (21) inch Fort Worth water line 37.0 63.0 Elevated tank 40.0 60.0 Land and municipal complex 23.6 76.4 Treatment plant (based 011 number of taps) 30.0 70.0 The Developer (Gibraltar Savings) and the District have an agreement making the District the managing district. TROPHY CLUB hIUNICIPAL UTILITY DISTRICT NO. 1 NOTES TO COhtBINED FINANCIAL STATEMENTS September 30, 1988 11. ~oint venture (continued) The District prepares and administers the budget and financial responsibilities with the Developer reviewing and consenting to same. The Developer has agreed that any net revenues belong to the districts using the system. Based upon this arrangement, the entire project is included in the records of the District and all financial data is included in the financial section of the report, thus it is not included here. Joint venture debt is secured by tax revenues from the residents. The Developer has funded its share of the joint venture. In the event tha~ the other municipal utility districts using the system sell bonds, the Developer will sell its i~lterest to those districts. 12. Extinguishment of debt - During 1987, the Distrlct issued bonds in the amount of $5,675,000. The proceeds, along with cash on hand in the Inxeresx and Sinking Fund, were used to extinguish the three (3) existing outstanding bond issues. Funds so deposited in an irrevocable trust are adequate to fund principal and interest payments until the remaining bonds are callable. At that time, all outstanding bonds will be re-tired. At September 30, 1988, $6,150,000 in bonds were outstanding. SUPPLEMENTARY SCHEDULES TROPilY CLUB ilUNICl1'rlL UTILITY DISTRICTS NO. 1 ANALYSIS OF CI1ANGI:S IN CASll AND TEIIPORARY INLrESThlENTS - AliL FUNUS Yenr elided Seg~einbcr 30, 1988 Toinl cash nnd ielspurnrg iiiiieslrncnLs pruvidcd CUSII disbul.seinents for currcnL espenditures Cash Lr;~ilsfors to uLlier funds L';irsicii~ 01 briud oi.incio:il 1ncrec%se (r1ecre:isc) ill cnsli uiid I crnporary ii>oest.inco~s C;isli :ind lcinpul';l~.y jiii.esr,iirnl. hiilanci-a, buiiiiii)ii)g 01 year C .tall ~. nlid ieiiil)ol.iti.y ~~VCSLIIIEIII II:LJIZIIUE~, end 01 year DebL Sel.rice Eund (incllloriindwli unl,') Yenr coded Yenr ended Seple~nbcr 90, Septciilber 30, 1988 _ 1967 TROPHY CLUB NUNICIPAL UTILITY DISTRICT NO. 1 GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS Year ended September 30, 1988 Series 1987 Due during fiscal years Principal Inxerest due ending due March and September 30, September 1 September 1 1989 3 150,000 S 424,062 1990 155,000 415,438 1991 165,000 406,137 1992 180,000 395,990 1993 190,000 384,650 1994 200,000 372,395 1995 215,000 359,195 1996 230,000 344,575 1997 245,000 328,475 1998 265,000 310,835 1999 285,000 291,225 2000 305,000 269,565 2001 330,000 245,775 2002 355,000 219,375 2003 385,000 190,620 2004 415,000 159,050 2005 450,000 124,605 2006 485,000 86,805 2007 530,000 45,580 $5,535,000 55,374.352 Cash and remporary Investment balances at Sep~ember 30, 1987: Debt Service Fund Cash and temporary investment balances at September 30, 1988: Debt Service Fund Tot a1 .$ 574,062 570,438 571,137 575,990 574,650 572,395 574,195 574,575 573,475 575,835 576,225 574.565 Total annual requirements all series Inzeresz raze TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT Year ended September 30, 1988 Bond issues Series 1987 Tot a1 Dates interest payable Maturity dates Bonds outstanding at beginning of current year Bonds sold during current year Retirements : Principal Bonds outstanding at end of current year Retirements: Interest Paying agent ' s name and address Bonds voted : $12,344,217 Series 1987: NCNB of Texas Fort Worth, Texas Bonds approved: S 6,765,000 Bonds sold: $6,765,000 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF TEMPORARY INVESTMENTS Year ended Seprernber 30, 1988 Accrued interesr Identification Balances receivable or certificate Interesr >laturiry at end at end Fu~lds n~unber rare date of gear of year General Water and Sewer Fund Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit Certificate of deposit TROPHY CLUB bIUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF TAXES RECEIVABLE September 30, 1988 Operations and Maintenance Taxes Total - Taxes receivable at beginning of year $ 18,468 S 69,163 $ 87,631 1987 tax roll 75,020 -- 590,579 665,599 Total to be accounted for 93, 488 659,742 753,230 Less collections: Current year Prior years Taxes receivable at end of year Taxes receivable by years: 1980 1981 Property valuations: Five years ended September 30, (in thousands except for tax roll amount) 1988 1987 1986 1985 1984 - - - - Land $ 43,998 $ 33,704 $ 32,332 $ 21,235 $ 21,703 Improvements 113,135 102,062 84,646 73,070 59,731 Personal property 2,508 3,018 2, 427 2,113 1, 863 Exempt ions (15 (17) (17) (17) (15) Total property valuations - - $159,616 $138,767 $119,388 - - S 96,401 5 83,281 - - Tax rate per $100 valuation $0.417 -- -98 -- $0.598 -- - $0.598 $0. 598 -- -- Tax rolls $665,599 $829,827 $713,943 $576,484 - - $496, 667 For the year ended September 30, 1988: A11 taxes Percent of current xaxes collected to current tares levied 94% Percent of current and delinquent taxes collected to current and delinquent taxes outsxandiag at beginning of tax year SSZ TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 ANALYSIS OF ORGANIZATIONAL COSTS Year ended September 30, 1988 Balances at beginning of year Organizational costs - creation period Engineering and surveys $ 10,991 Filing fees, licenses, legal notices and permits 2, 640 Legal fees 13,725 Direczor fees and per diem 400 Other costs 36 1 Total organizational costs - creation period 28,117 Organizational costs - construction period Legal fees Financial consulting fees Operating expenses Bond interest expense Amortized bond discount Total organizational costs construction period Tozal organizational costs 3522,688 ilmounts provided: For district organizational costs - creation period by construction fund S 28,117 For district organizational costs - construction period: By Capital Projects Fund 252: 228 By Debt Service Fund 242, 3.13 Total district organizational costs - construction period 494,571 Additions (decreases) Balances at end of year 494,571 $522, GSS Tozal provided S522.688 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 SCHEDULE OF NOTES PAYABLE September 30, 1988 Payable Accrued Interest Maturity at end interest rate date of year on notes General long-term debt: FblC Corporation 7.2% 6-25-95 $40,500 5 - Totals - All funds - $40,500 $ - TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 .ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS Year ended September 30, 1988 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 Additions provided by: Debt Service Fund Contributions by developer Contributions by General Water and Sewer Fund Balailces at beginning of year Additions (delerions ) Balances at end of year 7 --- o LET 6'96 D'CG O'iG -- --- ~'SIT I'D01 F'FL E'DL C'OI C "3 E'GT 0'01 TI E'Zi .- -- - - - O'OO'I 0.00I 0'001 0'001 0.001 -- -- -- - - - - - - - . - O'RT I L'E G'C 8'1 F'I ~'i F'E :E'BG %'SO m.os xz.zs R-ZG - E.68 T G'EiT G'IS L'FG - - --- 1'0 1'0 9'0 S'T 0'1: F'E 6'01 S'GZ S'i O'F O'OE S'OE F'FE G'OE P'TF 9.e E'Z T'F F'Z E'L -. c, LZ L'OE L'GE I'OC F'TE O'E! 1 S'LT G'ET B'LI - --- O'OOT 0'001 0'001 0'001 O'OOT ----- S'E B'I 0'; 9'1 F'T - - 9 F'CT Z'S GI O'E - - - - S'P D'E 8 Z'B F'CI I'L G'l. S'T 0'1 :E.OL IO'IS ZL'ES :$)'DL BE.CS - - --- FSGT BSGT 0861 LSGI 3881 'nc .iaoaioirlas -- OVE'FOL VBL'BSL LGO'FSL ~~E'OOL SLL'OSS -- -- STS'IEB DC0:SiB CSL'FIS CPO'ODS SLL'0i.F 000 'GI, no0 SIT OOO'OEI OOO'ODT OOO'O1s~ -- FCG'LbS FGb'SPB 1GS'SOG IZG'GOE'I ESE'OTG'I EDL G0G DGF 'is SVL'OZ SGT'CZ SEF'ZZ 081. 'i,~ TLD'EIZ ZGO'LOP PSE 'CD OGS'GEZ IDO'L~Z OFC'LFZ TES'ZSC c1b'Io~ OGO'LT 015 'ST TZG 'GZ VIT'LZ SVL'ZG ~~8'091 SEB'DIZ SFT'ZSZ LGZ'E?E OGE 'TOT, ELL'98 SSP 'OZI SST'S~T 1.18'8~~ OEZ 'SZZ -- ZFF'EZ 81E'!I OZD'i~T IIZ'ST SGL'B! - - FS0'i.i~ OCZ'BLI Gi~B'I~OI 9E0'CS IZO 'EE - - - - GIL'EE TEG'SZ PE [ 'SS GSD'SL ELZ '88 FBG '~b $ir6ic LEII'LT OOB'~I >GE'SBT~ S BIE'SLS S SEE'ZOD S OFL'SPZilS SGO'SOO'TS - - - - FSGI CSGI BSGT LSGI EiE .iaqalaidas papua .si:aL TllOPllY CIiUU LlURICIPAl~ UTILITY DISTRICT NO. 1 COhlPARATI\'E STATELIENT Or REVENUES AlvD EXPENDITURES Years elided Sci~lcnlbcr 30, 1968, 1967, 1986, 1965 and 198.1 (Continued) AiilOUnL .- IJcrcenr "I I!od LOL:L~ rcrcnue Year cndcd Yeill. elided SepLcsiber 30, SepLco~bcr 30. 1966 - 1867 - 1986 1985 1884 - - -- 1888 1967 1086 1985 - -- C:ipil.al ProJrca IICI~COUBS S - S 2,973 S 23,723 S 4,OSO S - - - - . . hlisccl laneuus expenses - 'E - 42.673 - 'Tol.nl C:ipiLnl Projects Fulid esiiendi turcs - 12 - - -12,673 - Excess (delicicncy) 01 CnpiLol Projects i'uiid ~CYCIIUCS over cspcndiLures S - S 2,831 S 23,723 S (38,793) 5 . Average ulinuul debt scrvice requiremcni: Ior unpaid ilrincipnl slid inLrresr S 574,176 S 5i.l,05G S 650,655 S 854,853 S 656,716 Esccss rcvclrucs Irorii Ccsei:~l Fund tilid Dcbr Sclijce Fittld belo1.e eapendjlurrs lor deb,. service 694, 3.19 936, d.lG 569,1 BG 601,380 634,810 Cuizcl.ilgc (escess revenues us vdjusLcd Llivitled by i~nnual dcbi service ~.coui ~'ciseiiL I 1.21 1.53 0. 91. 0.92 0.97 Nu~z~bel. UI ivilzer and scirer coiinccriuiis ill ,:liii iif yeici. l'aLa1 :uiiouor nI WRICJ' billed LO cusluiiicrs (111 1.11nuialliis ~il giillolis) 'TuL~L~ iir~i~iiilii. UI iritrei. jiumped inLo sysics> (i,, ~iious~biids ol gallons1 1Jcr.cerii:igr 01' t~.iiier billed 1.0 iviiter pusl>cd (1.1 I)ur~i~l: 1081.1885, ~ile calibriiiioli crjuiliiliciii had iiiecbanic;il sloilunciiuns. :Is a i'esull, Llic ~oiiils of IYBLCI. jluiiilled inLl7 ill- system tire lioL correct. Ci i c iu s ilmi .d,, rid0 onc a 0 i 0 71 = : I 0 Z z, i c d 0 s %._(+ 0'3 bS mi. CJLi i C U 7-0 Li - " 3 i) 3 0 i r 10 V1 1. iG SepLelnllel. 30, 1388 (Continued) Niune and address ofrice elected anrl espclisc Rcsidciil nnd esi~ircs or rciisburseiiien~ of dore hired 09-30-8~ - Tiilc at yeor-end DistricL? D~~?ton County Appriiisiii Distrlci. P. 0. BOX 2616 nciltoli, TCX~LS 04-01-81 S 9,026 Assessor Nu Phillips, Ii'elch, Oillord k llobei'soii, P. C. 3015 Ii'csi FiiLli Stl'cci. FUI.L l';iii.Lii, 'Tc:.::Ls 761 0i CerLillrd Public 03-31-63 9 12,G?5 iicc0~liiLiill LCj Nu TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1988 1. On the following chart, provide the appropriate check marks for each listed accounting record. Under the "USED?" block 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 aye made less often than monthly, write in the fre- quency under "How Often?". Indicate who provided the information for rhe table below: Becky Thurszon USm? HOW KEPT? \VIW UPDATED? BY BY HOW RECORD NO YES HAM) COIIIPUTER DAILY \EEKLY bDNTHLY OOI;TEN? --- 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 Custmr subsidiary ledger X X X Fixed assets ledger X X Bank reconciliation X X Trial balance X X Yearly X X 2. Does the district use double entry accounting? 3. What is the usual location of the accounring records? 100 Municipal Drive, Trophy Club, Texas 4. Did you identify, during the course of your examination of the financial statements of the water districr, any areas pertaining to accounting matters in which action should be talcen by the Board of Direcrors of the water district? a -- YES NO X -- YES NO If Yes is checked for Quesrion 4, have rhese ropics been discussed in a Management Letter to the water district's Board of Directors? TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1988 (Continued) 5. Did you obtain representation from the Board of Directors of the water district xhat all records - of xhe water districx were made available to you for youT examination? 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 wizhin the provisions of the applicable bond resolutions? b. Properly escrow the required amount of cash as prescribed by the Texas Water Commissiou 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 contracx 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 wixh the Social Security Division of the Texas Employees Retirement System? g. Deposit receipts to the proper funds kepz by the approved depository bank? h. 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 ,Y -- YES NO (1) -- YES NO X -- YES NO X -- YES NO X -- YES NO n -- YES NO (1) No intergovernmental transactions TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1988 (Continued) 7. Note: A management letter is an audiz scope requirement of the Water District Accounting Manual. a. The date of the most recent management letter was December 2, 1988. 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? 4 -- 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) SlG5,17G c. Amount of bond or other security pledged as of the end of he fiscal period (par value) $400,000 d. Largest cash balance $477,338 e. Date of largest cash balance 09-28-88 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 deposizory bank - First National Banlr of Grapevine b. Amount of F.D.I.C. coverage (if member bank) $200,000 c. Amount of bond or other security pledged as of the end of the fiscal period (par value) Noile d. Largest cash balance 5111,935 e. Date of largest cash balance 07-27-88 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, 1988 (Continued) a. The name of the depository bank - AMBC Grapevine b. .haunt of F.D.I.C. coverage (if member bank) $100,000 c. Amount of bond or oeher security pledged as of the end of the fiscal period (par value) $199,000 d. Largest cash balance $175,000 e. Date of largest cash balance 12-20-87 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 - American Bank Mid-Cities 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 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) None a. The name of the depository bank - AMBC Haltom City b. Amount of F.D.I.C. coverage (if member bank) $100,000 c. Amount of bond or other security pledged as of ehe end of the fiscal period (par value) None d. Largest cash balance $100,000 e. Date of largest cash balance 09-30-88 f. The amount of bond or security pledged at the time of ehe largest cash balance (excluding F. D. I. C. coverage) - None TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Yeay ended September 30, 1988 (Continued) The name of the depository bank - ABC Riverbend Bank, Fort Worrh Amount of F.D. I.C. coverage (if member bank) $100,000 Amount of bond or ozher security pledged as of the end of the fiscal period (par value) None Largest cash balance 9100,000 Date of largest cash balance 09-30-8s The amount of bond or security pledged at the time of the largest cash balance (excluding F.D. I. C. coverage) None The name of the depository bank - NCNB/Tesas 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 8382,229 e. Date of largest cash balance 08-31-88 f. The amount of bond or security pledged at the time of the largest cash balance (excluding F.D.I.C. coverage) $382,229 9. The water district's taxes were collected by a district employee. 10. Was the tax assessor-collector bonded as required by law? S -- YES NO 11. What was: a. The tax assessor-collected bonded for? S 10,000 b. The greatest amount of the district's rases in the tax assessor-collec'cor's possession at any one rime? (2) c. The frequency of ras recei~ts deposits wirh the bonded deposi~ory? Weekly TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. 1 QUESTIONNAIRE TO BE COblPLETED BY AUDITOR Year ended September 30, 1988 (Continued) 12. We (checlr one): a. Actually examined the records of the tax assessor-collector b. Received written confirmation for tax data from the tax assessor-collector c. Accepted tax data furnished by the district's administrative offices 13. Were local tax revenues (including delinquent taxes and interest and penalties on taxes) properly X -- separated for debt service? YES NO 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 hianual? 15. Full and complete explanations and/or references to notes, schedules (or comments in the auditor's report letter) for responses marked (*). -x -- YES NO (2) Receipts are deposited as received into district account. CERTIFICATE OF THE BOARD OF DIRECTORS Trophy Club Municipal Utility District No. 1 Name of Water District Dentoll County We, the undersigned, do hereby certify thar, rhe audit report of zhe above-named Water District for the fiscal year ended September 30, 1988, was received by the Board of Directors on the 8th day of December 1988, - and was reviewed and ( X) approved; ( 1 disapproved at a meeting of the Board of Directors of the Water District on the 13th day of December , 1988. - Signature of Board Secretary nature of Board President