The URL can be used to link to this page

Home My WebLink AboutFY Ended September 30, 1992TABLE OF CONTENTS Independent Auditor's Report General Purpose Financial Statements Combimed 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 Fund Notes to general purpose fmancial statements Supolementaw Schedules Supplementary schedules included within this report Schedule of services and rates Schedule of General Fund expenditures Analysis of changes in cash and temporary investments - all funds General long-term debt service requirements - by years Analysis of changes in general long-term debt Schedule of temporary investments Analysis of taxes receivable Analysis of organizational costs Analysis of changes in general fixed assets Schedule of notes and capital lase payable Comparative schedule of revenues and expenditures - five years Insurance coverage Board members, key administrative personnel and consultants Questionnaire to he completed by auditor Individual General Fund account financial statements Net general fixed assets by funding source Certificate of the Board of Directors Paee - 1 JAMES L. BUXTON Certified Public Accountant 5017 S. Hulen. Suite 4. Tel. 346-8315 Fort Worth. Texas 76132 INDEPENDENT AUDITOR'S REPORT Board of Directors Trophy Club Municipal Utility District No. 1 Trophy Club, Texas I have audited the accompanying general purpose financial statements of Trophy Club Municipal Utility District No. I as of September 30, 1992, and for the year then ended as identified in the Table of Contents. These general purpose financial statements are the responsibility of Trophy Club Municipal Utility District No. 1's management. My responsibility is to express an opinion on these general purpose financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of Trophy Club Municipal Utility District No. I as of September 30, 1992, and the results of its operations for the year then ended, in conformity with accounting principles using governmental fund types as required by the Texas Water Commission. These accounting principles, which are more fully described in Note 1 to the general purpose financial statements, are a comprehensive basis of accounting other than generally accepted accounting principles. As discussed in Note 11 to the financial statements, certain errors resulting in understatement of previously reported general fixed assets as of September 30, 1989, were discovered by management of the District during the current year. Accordingly, an adjustment of $6,000,000 has been made to general fixed assets as of September 30, 1992. My audit was conducted for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The supplementary schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of Trophy Club Municipal Utility District No. I. This information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in my opinion, is fairly presented in all material respects in relation to the general purpose financial statements taken as a whole. November 22, 1992 ASSETS Cument assets Cash: Unrestricted cash Restricted cash Total cash Temporary investments, at cost: Unrestricted Total cash and teniporary investments Accounts receivable and accrued revenue, less allowance for doubtful accounts of $113,107 in 1992 and 1991 Ad valorem property taxes receivable Other receivables Prepaid expenditures Tolal current assets General tixed assets Amount available in Deht Service Fund Provision for bonded debt Amount to be provided for retirement of general long-term debt Total assets TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS Septemher 30, 1992 Totals Governmental fund types Account eroups (memorandum only) Debt Capital General General General Service Projects fixed long-term September 30, September 30, Fund Fund Fund assets debt 1992 1991 (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I LIABILITIES Current liabilities - Accounts payable and accrued expenditures Refundable deposits Capital lases payable Notes payable Deferred income Bonded debt payable Totat liabilities FUND EOUITY Investment in general fixed assets Fund balances: Reserved for customer deposits Unreserved Total fund balances Tottal yuity Total liabilities and fund equity COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS (Continued) September 30. 1992 Governmental fund tvnes Account ~roups Debt Capital General General General Service Projects fixed long-term Fund Fund Fund assets debt Totals (memorandum onlv) Period ended Year ended September 30. September 30, 1992 1991 The accompanying notes to financial statements are an integral part of this statement. -3- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES Year ended Se~tember 30. 1992 Totals (memorandum onlv) Debt Capital Year ended Year ended General Service Projects September 30, September 30, Fund Fund Fund 1992 1991 Revenues Water and sewer service Inspection and tap connection fees Ad valorem property taxes Ad valorem property tax penalties and interest Interest earned Reimbursement for line relocation Sale of assets Miscellaneous Interest reimbursement from developer Total revenues Expenditures Current: Water and sewer department Administralive Fire department Mud I operations Capital outlay (Continued) -4- Exnenditures (continued) Debt service: Principal retirement Interest and fiscal charges Total expenditures TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES (Continued) Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Operating transfers in Operating transfers out Proceeds of unlimited fax and revenue bonds, net of issuance costs and discounts of $244,131 Total other financing sources (uses) Excess of revenues and other financing sources over expenditures and other financing uses Fund balances at beginning of year Fund balances at end of year Year ended September 30. 1992 Debt Capital General Service Projects Fund Fund Fund Totals (memorandum onlv) Year ended Year ended September 30, September 30, 1992 1991 The accompanying notes to financial statements are an integral part of this statement. -5- TROPHY CLUB MUNICIPAL UTILlTY DISTRICT NO. I COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CIlANGES IN FUND BALANCES (BUDGET AND ACTUAL) GENERAL FUND Yzar ended September 30. 1992 Revenues: Water and sewer service Inspection and tap connection fees Ad valorem property taxes Ad valorem property tax penalties and interest Interest earned Reimbursement for line relocation Sale of assets Miscellaneous Total revenues Expenditures: Water and Sewer Department: Salaries, wages, benefits and taxes Contract labor Water purchases Utilities and telephone Consumable supplies Maintenance and repairs Capital expenditures Engineering fees Rent lease equipment Bad debt Other Total Water and Sewer Department Administrative: Salaries, wages, benefits and taxes Professional fees: Legal Auditing Engineering Maintenance and repairs Contract labor Printing and office supplies Utilities and telephone Lnsurance and bonds Variance favorable - (unfavorable) (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRIm NO. I COMBWED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (BUDGET AND ACTUAL) GENERAL FUND Year ended September 30, 1992 (Continued) Expenditures: (continued) Administrative: (continued) Travel and seminars Legal notices and publications Directors fees Capital expenditures Other expenses Total administrative Fire Department: Salaries, wages, benefits and taxes Utilities and telephone Debt service Schools and training Uniforms Fuel and supplies Insurance and bonds Capital expenditures Maintenance and repairs Remote communications Professional fees: Legal Auditing Tax office contract services Other Total Fire Department Variance favorable - (unfavorable) (Continued) -7. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (BUDGET AND ACTUAL) GENERAL FUND Year ended September 30, 1992 (Continued) MUD I Operations: Professional fees: Legal Auditing Engineering Printing and office supplies Insurance and bonds Travel and seminars Tax office contract services Legal notices and publications Directors' fees Other MUD I Operations Total expenditures Excess of revenues over expenditures Fund balances at beginning of yeat Fund balances at end of yea1 Budret - /.cJaJ Variance favorable - (unfavorable) The accompanying notes to financial statements are ;m inlesral part of this statement -8- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 1. Summarv of accountin? uolicies a. Reportine entity - For financial reporting purposes, in accordance with generally accepted accounting principles, Trophy Club Municipal Utility District (MUD) No. I (the District) includes all funds, account groups, agencies, boards, commissions, and authorities that are controlled by, or financially dependent upon, the municipal utility district. Control and financial dependence are determined on the basis of the obligation to finance deficits, guarantee debt, select members of the governing authority, and approve the budget; the authority to make a public levy and own assets; the scope of public service; and special financing relationships where there is only partial or no oversight responsibility. All pertinent documents, transactions, contracts, and correspondence with other governmental agencies were reviewed to determine the reporting entity. Based upon this review, using the forgoing criteria, no additional organizations are included in the accompanying financial statements. b. Fund presentation - As required by the Texas Water Commission, we are reporting using governmental fund types. Except for using governmental fund types rather than enterprise funds, the report is in accordance with generally accepted accounting principles. This other comprehensive basis of accounting is required by the Texas Water Commission. c. Descriution of funds - The District has established separate governmental fund types, as typically used to report non-enterprise government financial activity, to account for transactions in compliance with legal requirements imposed by the Texas Water Commission. Funds and account groups used by the District are as follows: Governmental funds General 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. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 1. Summarv of accountinrr ~olicies (continued) Debt Service Fund - To account for the source and disposition of monies for paying interest and principal on general long-term debt. Cauital Proiects Fund - To account for the acquisition of Capital facilities being financed from bond proceeds. Account erouus General Fixed Assets - To account for property and equipment of the District. General Lone-Term Debt - To account for the unmatured principal of outstanding General Long-Term Debt. d. Basis of accounting - Basis of accounting refers to when revenues and expenditures are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of tlie measurements made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accrual basis of accounting. Their revenues are recognized when they become measurable and available as net current assets. Ad Valorem property taxes are recorded as revenue when received or expected to be received in 60 days. Penalties, interest and miscellaneous revenues are recorded when received in cash because they are generally not measurable until actually received. Intergovernmental revenue and interest income are accrued, when their receipt occurs soon enough after the end of the accounting period so as to be both measurable and available. Expenditures are generally recognized under the modified accrual basis of accounting when the related fund liability is incurred. Exceptions to this general rule include principal and interest on general long-term debt which are recognized when due. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 1. Summaw of accounting policies (continued) e. General fixed assets - General fixed assets consisting of property, plant and equipment are recognized as expenditures in the General and Capital Projects Funds at the time of purchase and capitalized in the General Fixed Assets Account Group. No depreciation has been provided in general fixed assets. The accounting and reporting treatment applied to fixed assets is determined by a fund's measurement focus. All governmental funds are accounted for on a spending or "financial flow" measurement focus. This means that only current assets and current liabilities are generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources. " Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. General fixed assets are valued at historical cost or estimated historical cost, if actual historical cost is not available. Donated assets are valued at their estimated fair value on the date donated. Repairs and maintenance are recognized as expenditures; renewals and betterments are capitalized. f. Bud~ets and Budeetarv Accounting - The District follows these procedures in establishing the budgetary data reflected in the financial statements: 1. The Board of Directors adopts an annual budget for the General Fund on the modified accrual basis. No budget is prepared for the Debt Service and Capital Projects Funds. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 1. Summary of accountine policies (continued) 2. The Board of Directors approves, by ordinance, budget appropriations. Any revisions that alter the total appropriations of any fund must be approved by the Board of Directors. Therefore, the level of budgetary responsibility for each fund is by total appropriations. 3. Unused appropriations of the above annually budgeted fund lapse at the end of the Year. 4. No significant amendments to the budget occurred during the year. f. Cash and investments - The District maintains a separate bank account for each fund. Except for bond related transactions, the District conducts all its banking and investment transactions with its depository bank. Deposits At September 30, 1992, the carrying amount of the District's deposits was $4,410,669 and its total bank balance was $4,468,206. Of the bank balance, $200,000 was covered by federal depository insurance, and $4,603,317 was covered by collateral in the District's name held at the Northwest Bank, Roanoke, Texas; Team Bank, Fort Worth, Texas; Nations Bank, Texas Trust Division of Fort Worth, Texas; the State of Texas Texpool; and Ameritrust Texas, N. A., the District's bond agent. The District does not carry any bank balance over and above the insured and secured amounts. Investments are stated at cost which approximates market for all investments. All investments mature within one year. During fiscal year 1992, the District had no investments other than interest bearing bank accounts, Certificates of Deposits and the State of Texas Texpool. Texpool is duly chartered and administered by the State Treasurer's office, and the portfolio normally consists of U. S. T-Bills, T-Notes, collateralized certificates of deposit, and repurchase agreements. The District records all interest earned from investment activities in the respective funds. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 1. Summarl, of accountine ~olicies (continued) g. Total columns - Total columns are captioned "memorandum only" to indicate that they are presented only to facilitate financial analysis. Data in these columns do not present financial position or results of operations in conformity with generally accepted accounting principles. Neither are such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of these data. Total columns for the prior year are presented to provide an understanding of changes in the District's financial position and operations. However, prior year information by fund type is not presented since their inclusion would make the statements unduly complex and difficult to read. 2. Creation of district - The District was created by an order of the Texas Water Commission on March 4, 1975, and confirmed by the electorate of the District at a confirmation election held on October 7, 1975. The Board of Directors held its first meeting on April 24, 1975, and the fust bonds were sold on June 8, 1976. 3. Initial Bond Sale - The first bonds were sold in accordance with the bond resolution which required that a portion of the bond proceeds be deposited into the Debt Service Fund for the payment of bond interest during the construction period. 4. Orranizational costs - The District, in conformance with requirements of the Texas Water Commission, capitalized and charged to organizational 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 occurred. As the District purchased its facilities already completed by the developer, only those costs funded by bond proceeds were capitalized. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 5. General lone-term debt - The annual changes to general long-term debt as of September 30, 1992 are as follows: Cauital Lease Notes Pavable Bonded Debt Balance October 1, 1991 $18,329 $20,250 $5,174,000 Sale of bonds - - 4,350,000 Principal reductions 13.864) (6.750) 1295.000) Balance September 30, 1992 $14.465 $13.500 $9.229.000 6. Bonded debt - At September 30, 1992, the District's bonded debt consisted of: Range of General Next Subsequent interest long-term Year Long-term Maturity rates debt maturities maturities Water works and sewer system combination unlimited tax and revenue Serially bonds series through 5.50 - 1987 2007 8.60 $4,885,000 $190,000 $4,695,000 Public Property Finance con- Serially tractual obli- through 7.60 - gations 1989 1999 9.00 99,000 11,000 88,000 Water works and sewer system combination unlimited tax and revenue Serially bonds series through 5.50 - 1991 2011 7.50 4.245.000 115.000 3.130.000 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 6. Bonded debt (Continued) A schedule of bond maturities is as follows: Interest Principal Total Tax and revenue bonds authorized and unissued as of September 30, 1992, amounted to $1,229,217. 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 provision 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 ended September 30, 1992. 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. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 6. Bonded debt (Continued) During 1987, the District issued bonds in the amount of $5,675,000. The proceeds, along with cash on hand in the Debt Service 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 retired. Accordingly, the trust account assets and the liabilities for the defeased bonds are not included in the District's financial statements. At September 30, 1992, $5,355,000 in bonds outstanding are considered defeased. 7. Capital lease pavables - The District has entered into a lease for equipment. The lease is accounted for as a capital lease. At the end of the lease, the District will own the equipment. Future minimum lease payments for the lease described are as follows: Year - Amount Total Less amount representing interest (7.439) Present value of net minimum lease payments $14.465 8. Notes payable - Notes payable consist of the following: Amounts due to a financial institution payable $6,750 plus interest annually, 7.2%, due in 1995, secured by equipment $13.500 A schedule of maturities is as follows: Principal TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 9. Water and sewer service rates - The Trophy Club Municipal Utility District No. I has established the following water and sewer service rates: Tap fee $ 350.00 Sewer inspection fee 25.00 Water service only: Treated water: First 3,000 gallons of water used - minimum bill Each additional 1,000 gallons of water used thereafter up to 20,000 gallons Each 1,000 gallons of water used in excess of 20,000 Untreated water: Each 1,000 gallons of water used Inigation water: First 300,000 gallons of water used - minimum bill Each 1,000 gallons of water used in excess of 300,000 Standby fee per month 6.00 Sewer charge per month - minimum bill Each 1,000 gallons of water used - in excess of 3,000 Sewer charge per month - maximum bill (residential only) 10. Commitments - The District follows the guidelines of the Texas Water Commission in its dealings with developers. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 11. Chanees in general fixed assets - A summary of changes in general fixed assets follows: Balance Balance September 30, Additions September 30, 1991 (deletions) 1992 Land Buildings Water system Sewage system Drainage system Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees 13,397,646 69,395 13,467,041 Capitalized creation and construction period organizational costs 522.688 - 522.688 Total $13.920.334 $69.395 $13.989.729 Additions provided by: Bond issues $ 5,171,368 $22,229 $5,193,597 Contributions by developers 6,850,741 - 6,850,741 Contributions by General Fund 1,375,537 47,166 1,422,703 Contributions by Debt Service Fund 242,343 - 242,343 Contributions by Capital Project Fund 280.345 - - 280.345 Total $13.920.334 $69.395 $13,989.729 *Expenditures from General Fund During 1992 Management discovered that a contribution fro111 a developer in the amount of $6,000,000 had not been set up in the General Fixed Assets account group. Therefore, the opening balances of the water, sewage and drainage systems were increased $2,600,000, $2,400,000 and $1,000,000 respectively. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 12. Revenue Recoenition - Ad Valorem Prouertv taxes - Property taxes attach as an enforceable lien on property as of January 1. Taxes are levied on October 1 and are due and payable by January 31, of the following year. All unpaid taxes levied October 1 become delinquent February 1 of the following year. The District receives most of its payments in December. Property taxes for the District are not limited as to rate or amount. The District's current tax rate is $295 per $100 of assessed valuation, which is approximately one hundred percent (100%) of actual value. 13. Ca~itdized interest - The District capitalizes net interest costs and interest earned as part of the cost of constructing various water and sewer projects when material. 14. Restricted assets General Fund - Restricted cash represents amounts deposited into an account specifically set aside for refund of customer water deposits. Debt Service Fund - Restricted cash represents amounts deposited into sinking fund accounts for the retirement of bond principal and interest. TROPHY CLUB MUNICIPAL UTKLITY DISTRICT NO. I NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 15. Joint venture - The District holds legal title to and operates the central water supply system and the central waste disposal system as "Master District" for the Trophy Club joint venture for the benefit of Trophy Club MUD I, Trophy Club MUD I[, and developers in the Trophy Club joint venture. The original ultimate build out of Trophy Club anticipated participation by additional Municipal Utility Districts. The proportionate atlocation of costs and related beneficial usage rights in the major assets, based on estimated ultimate usage of such major assets, is as follows: (A) MUD I Water plant and wells 40.91 Twenty-one (21) inch Fort Worth water line 36.89 Elevated tank 43.99 Original treatment plant and land 67.14 Expanded treatment plant 33.76 Administration building 23.38 MUD I1 27.14 40.00 56.01 32.86 46.25 0.00 (B) Future Development percent 31.95 23.11 00.00 00.00 19.99 76.62 (B) (A) Reimbursement to the developers has not been fully funded at year end. (B) MUD I1 does not acknowledge any portion of the cost of the administration building as being their responsibility. The developers and the districts have an agreement making the District the managing district. The managing district has financial responsibilities which include preparing and administering the budget. The developers and other districts review and modify this budget. The developers have agreed that any net revenues belong to the districts using the system. Based upon this arrangement, the entire joint venture is included in the financial statements of the managing district. The developers have not funded their share of the joint venture. In the event that the inunicipal utility districts using the system sell more bonds, the developers will sell their interest to those districts. TROPHY CLUB MUNICPAL UTILITY DISTRICT NO. 1 NOTES TO GENERAL PURPOSE FINANCIAL STATEMENTS September 30, 1992 16. Retirement Plan - The District provides pension benefits for all of its full time employees through a single employer defined contribution simplified employee pension - Independent Retirement Contribution agreement plan. In a defined contribution plan, benefits depend solely on amounts contributed to the plan plus investment earnings. Employees are eligible to participate after completion of six (6) months service. The District contributes five percent (5%) of participating employees' compensation. By Board approval and Internal Revenue Service regulations the contribution rates are established annually. Beginning with participation, all contributions are 100% controlled by the employee. The pension, as established does not recognize prior service costs as it is based exclusively on current compensation earned by participants. The District's total payroll, covered payroll and contributions for 1992 were as follows: District's total payroll $358,639 District's covered payroll 291,613 District's contribution required and paid 14,581 17. Subseauent event - The Master District and Trophy Club Municipal Utility District No. I have entered into an agreement to acquire ownership in the treatment plant in excess of the original agreement. Subject to approval by the Bankruptcy Court, these assets will be acquired. 18. Developer - During the year tlie District set up a receivable due from a Developer for construction repairs related to their percentage of the ownership of assets. Additionally the District has set up a payable for monies received on tile sale of certain assets for the Developer's percentage of ownership. While these items are unrelated, the Disirict intends to exercise the right of offset, if the Developer does not reimburse the District for the expenses. SUPPLEMENTARY SCHEDULES The following Supplementary Schedules are included to satisfy reporting requirements of the Texas Water Commission. TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I SUPPLEMENTARY SCHEDULES INCLUDED WITHIN THIS REPORT September 30, 1992 D. Notes Reouired bv the Water District Accountine Manual These are incorporated into the Notes presented as part of the General Purpose Financial Statements. D.(l) Schedule of Services and Rates D.(2) Schedule of Genera1 Fund Exaenditures E. Analvsis of Chanees in Cash and Temaorarv Investments - All Funds F. General Long-Term Debt Service Requirements - by Years G. Analvsis of Changes in General Low-Term Debt H. Schedule of Temoorarv Investments I. Analvsis of Taxes Receivable J. Analvsis of Oreanizational Costs K. Analvsis of Changes in General Fixed Assets L. Schedule of Notes and Capital Lease Pavable M. Com~arative Schedule of Revenues and Expenditures - five vears N. Insurance Covera~e 0. Board Members. Kev Administrative Personnel and Consultants P. Ouestionnaire to be Comaleted by Auditor Q. Combinin: Schedules R. Certificate of the Board of Directors TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I SCHEDULE OF SERVICES AND RATES Year ended September 30, 1992 1. Services provided by the District: Retail water - X Wholesale water - Drainage Retail sewer Wholesale sewer - Irrigation ParksIRecreation X Fire Protection - Security - Solid WasteIGarbage - Flood Control - Roads X Participates in joint venture, regional system andlor waste water service (other than - emergency interconnect) - Other 2. Total water consumption (rounded to the nearest 1,000) during the fiscal year: Gallons pumped into system: 383,270 Gallons billed to customers: 342,500 3. Retail rates (based on 518" meter) based on rate order dated June 25, 1991: Minimum Rate per Minimum Usage Flat 1,000 gallons Usage levels Charee fjn eallons) over minimum (in eallonsl Water $9.00 0-3000 No $1.65 3,001 to 20,000 $1.85 over 20,000 Sewer $9.00 0-3000 No $1.50 over 3,001" Surcharge: None Sewer usage does not employ winter averaging. Total water and sewer charges per 10,000 gallons usage: First 10,000 gallons used Next 10,000 gallons used Next 10,000 gallons used * Maxi~nurn residential sewer charge is for 12,000 gallons. TROPHY CLUB MUNICTPAL UTILITY DISTRICT NO. I SCHEDULE OF SERVICES AND RATES Year ended September 30, 1992 (Continued) 4. Number of retail water and/or waste water connections witl~ the Master District as of fiscal year ended September 30, 1992: 1,564 Connections Active Connections Inactive Connections Single family - District #1 93 8 - Single family - District #2 484 - Commercial - District #I 128 Commercial - District #2 14 - - Single family equivalents (SFE's) for: Number of Active SFE Inactive SEE Active Connections Connections Connections Multi family 56 247 - Commercial 70 3 45 - Other-recreational centers, government & Volunteer Fire Department 16 38 - - Total 5. Standby fees: The District currently assesses a monthly standby fee of $6.00 to any lot which has water and sewer service available, but not connected. (Continued) -24- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I SCHEDULE OF SERVICES AND RATES Year ended September 30, 1992 (Continued) 6. Other rates for retail services provided: Tap fee Sewer inspection fee For reconnection following disconnection for nonpayment Disconnect or reconnect at customer request Accuracy reading (if meter is found to be correct) Customer deposit (owner of property) Customer deposit (renter of property) Customer deposit (builder) Construction meter Returned check charge Name of contact person: Roger Unger Title: District Manager Phone number: (817) 430-191 1 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I SCJ3EDULE OF GENERAL FUND EXPENDITURES Year ended September 30, 1992 Water and Sewer Systems Fire Department MUD I Actual Onerations - Total Current: Personnel (including benefits) Professional fees: Legal Auditing Engineering Purchased services for resale Bulk water and sewer service purchases Contracted services: Tax collector Utilities and telephone Maintenance and repairs Administrative expenditures: Directors' fees Printing and office supplies Insurance and bonds Other Eire fighting Capital outlay - Acquisition of fixed assets Total expenditures Nuniber of persons employed by the District: Full-ti~ne: 14 Part-time: 1 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I ANALYSIS OF CHANGES IN CASH AND TEMPORARY INVESTMENTS - ALL FUNDS Year ended September 30, 1992 Totals fmemorandum onlv) Debt Capital Year ended Year ended General Service Projects September 30, September 30, Fund Fund Fund 1992 1991 Sources of cash and temporarv investments Cash receipts from revenues Cash transfers from sub accounts Refundable deposits Interest earned Miscellaneous revenues Sale of Bonds Total cash and temporary investments provided Applications of cash and temporarv investments Cash disbursements for current expenditures Cash transfers to sub accounts Payment of bond princip~tl Purchase ol fixed assets by General Water and Sewer Fund Deposits Okher Total cash and temporary investments applied Increase (decrease) in cash and temporary investments Cash and temporary investment balances, beginning of year Cash and temporary investment balances, end of year Due during fiscal years ending September 30 1993 1994 1995 1996 1997 1998 1999 2000 200 1 2002 2003 2004 2005 2006 2007 2008 2009 2110 2111 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS Year ended September 30, 1992 Series 1987 Principal due September 1 $ 190,000 200,000 215,000 230,000 245,000 265,000 285,000 305,000 330,000 355,000 385,000 415,000 450,000 485,000 530,000 Interest due March and Se~tember 1 $ 384,650 $ 372,395 359,195 344,575 328,475 310,835 291,225 269,565 245,775 219,375 190,620 159,050 124,605 86,805 45,580 - $4,885,000 $3.732.725 $8.617.725 (Continued) Series 1989 Principal due January 1 $ 11,000 12,000 13,000 14,000 15,000 16,000 18,000 Interest due January and Julv 1 Due during fiscal years ending September 30 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2110 2111 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I GENERAL LONG-TERM DEBT SERVICE REQUIREMENTS - BY YEARS Year ended September 30, 1992 (continued) Series 1991 Principal due September 1 $ 115,000 120,000 130,000 140,000 150,000 160,000 170,000 180,000 195,000 210,000 225,000 240,000 255,000 275,000 290,000 310,000 335,000 360,000 385,000 Interest due March and September 1 Total $ 286,165 $ 401,165 277,540 397,540 268,540 398,540 258,790 398,790 248,290 398,290 237,040 397,040 225,040 395,040 214,670 394,670 203,510 398,510 191,225 401,225 177,785 402,785 163,160 403,160 147,320 402,320 130,235 405,235 11 1,535 401,535 91,525 401,525 69,825 404,825 46,375 406,375 21.175 406.175 Annual Requirements Total Total Total Principal Principal Interest and Interest due due due $ 316,000 $ 678,449 $ 994,449 332,000 656,534 988,534 358,000 633,209 991,209 384,000 607,722 991,722 410,000 580,012 990,012 441,000 549,921 990,921 473,000 516,976 989,976 485,000 484,235 969,235 525,000 449,285 974,285 565,000 410,600 975,600 610,000 368,405 978,405 655,000 322,210 977,210 705,000 271,925 976,925 760,000 217,040 977,040 820,000 157,115 977,115 310,000 91,525 401,525 335,000 69,825 404,825 360,000 46,375 406,375 385.000 21,175 406.175 Cash and temporary investment balances at September 30, 1992: Debt Service Fund $366.440 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I Interest rate ANALYSIS OF CHANGES IN GENERAL LONG-TERM DEBT Year ended September 30, 1992 Bond issues Series Series Series 1987 1989 1991 Dates interest payable 3/1;9/1 1/1;7/1 3/1;9/1 Maturity dates Bonds outstanding at beginning of current year $5,065,000 $109,000 $ - $5,174,000 Bonds sold during current year Retirements: Principal 180,000 10,000 105,000 295,000 Bonds outstanding at end of current year 4,885,000 99,000 4,245,000 9,229,000 Retirements: Interest 395,990 8,579 269,537 676,247 Paying agent's name and address: Series 1987, Series 1989 and Series 1991: Ameritrust Texas, N. A., P. 0. Box 2320, Dallas, Texas 75211 Bond Authority: Refunding Tax Bonds Other bonds Bonds A111ount authorized by voters $12,344,217 $ - $ - Amount issued 11,115,000 - Remaining to be issued 1,229,217 . TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I SCHEDULE OF TEMPORARY INVESTMENTS Year ended September 30, 1992 Identification or certificate Interest Maturity Funds number rate date General Fund: Systems Certificate of deposit 13145214 2.0 10-3 1-92 Certificate of deposit 3000003847 2.6 10-3 1-92 Accrued interest Balances receivable at end at end of vear of vear TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I ANALYSIS OF TAXES RECEIVABLE September 30, 1992 Taxes receivable at beginning of year 1992 tax roll Total to be accounted for Less collections: Current year Prior years Taxes receivable at end of year Taxes receivable by years: 1982 and prior 1983 1984 1985 1986 1987 1988 1989 1990 1991 Fire Department Maintenance $ 8,834 158.891 167.725 MUD 1 Maintenance $ 7,788 35.189 42,977 MUD 1 Debt Service $ 47,780 847.419 895,199 $ 7.625 $ 5.592 $40.792 $ 54.009 Property valuations: Five vears ended Seoternber 30. (in thousands except for tax roll amount) 1992 - 1991 1990 1989 - 1988 Land $ 58,887 $ 57,533 $ 58,295 $ 54,000 $43,998 Improvements 204,761 224,165 235,886 144,964 113,125 Personal property 89,473 60,576 3,159 2,750 2,508 Exemptions (17) 2 (14) -.-.A3 (15) Total property valuations 353.104 $342.260 $297.326 $201.701 $159,616 Tax rate per $100 valuation w rn $0.417 Tax rolls (total) $1.041.499 $876.182 $832.513 $700.958 $665.599 For the year ended September 30, 1992: Percent of current taxes collected to current taxes levied Percent of current and delinquent taxes collected to current and delinquent taxes outstanding at beginning of tax year All taxes 98.7% TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I ANALYSIS OF ORGANIZATIONAL COSTS Year ended September 30, 1992 Balances at beginning of vear Balances at end of vear Additions {decreases) 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 - construction period Legal fees Financial consulting fees Operating Bond interest 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 MUNICIPAL UTILITY DISTRICT NO. I ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS Year ended September 30, 1992 Balance 9130191 General fwed assets: Land $ 144,786 -- Buildings ; 223,086 '. Water system j 2 L* ,3fii '2 tL3 j 5,476,259 ( J.>\ 0 (7, ;!Jr,,: Sewage system ,, 4,181,222 Drainage system < : t, *j:.,' : :. i-i:' , 1,972,898 - Machinery and equipment 315,028" Autos and trucks 280,946 .;.- Furniture and fwtures 40,097 ' Engineering fees 763.324./ Additions provided by: Bond issues $5,171,368 Contributions by developer 6,850,741 Contributions by General Fund 1,375.537 Additions Ideletions) Balance 9130192 TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I SCHEDULE OF NOTES AND CAPITAL LEASE PAYABLE September 30, 1992 Payable Accrued Interest Maturity at end interest date of year on notes General lone-term debt: FMC Corporation Totals - All funds Capital lease payable Totals - All funds TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I General Fund revenues Water and sewer service Inspection and tap connection fees Ad valorem property taxes Penalties and interest Miscellaneous Other Total General Fund revenues General Fund ex~enditores Pi~rchasul water and sewer services Payroll Professional fees Recurring operating expenditures Capital outlay Miscellaneous Tot21 General Fund expenditures Excess (deficiency) of General Fund revenuzs over expenditures COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES Five Years ended September 30 Amount 1992 - 1991 1990 1989 1988 Percent of fund total revenue 1992 1991 1990 1989 1988 ----- (Continued) -3 6- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES Five Years ended September 30 (Continued) Amount 1991 1990 1989 Percent of fund revenue 1992 1991 1990 1989 1988 - - - - Debt Service Fund revenues .4d valorem property taxes .4d valorem properly tax penalties and interest Interest earned h4iscellaneous Total Debt Service Fund revenues Deht Service Fund exnenditures Principal retiremen1 Interest and iisc;~l charges Total Debt Service Fund expenditures Excess of Debt Service Fund revenues over expenditures Capital Proiscts Fund revenues Interest wrned Other financing sources Total Capital Pro.jects Fund revenues Capilal Proiects Fund expenditures - h4iscell;1ntous Excess of Capital Projects Fund revenues over expenditures (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES Five Yws ended September 30 (Continued) Amount 1992 1991 1990 1989 - 1988 .4verage annual debt service requirement for unpaid principal and interest $ 861,134 $ 583,835 $ 584,172 $ 584,421 $ 574,176 Excess revenues from General Fund and Debt Service Fund before expenditures for debt service 1,948,674 979,179 665,236 475,481 694,349 Coverage (excess revenues as adjusted divided by annual debt service requirement) Number of water and sewer connections ;it end of ),e;ir 1,564 1,532 1,512 1,493 1,457 Total amount of water billed to customers (in thousands of gallons) 342,500 385,900 401,666 344,356 351,730 Total amount of water pumped into system (in thousands of gallons) (A) 383,270 406,600 412,694 437,313 404.147 Percentage of water billed to water pumped 89.4% 94.9% 97.3 5% 78.7% 87.0% Effluent (in tliousands of gallons) (A) During 1989, the calibration equipment had mechanical malfunctions. As a result, the total of water pumped into the system is not correct TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I INSURANCE COVERAGE September 30, 1992 Insurer Type of corporation Name stock/mutual Policy clause CO- insurance Amount of coveraee Tvue of coveraee Employee honesty, etc.: Tax assessor-collector Hartford Company Fidelity & Deposit Company Fidelity 6r Deposit Company Colonial Insurance Company U. S. Fire Insurance Company Stock Stock Stock Stock Stock None None None None None Public offici;~l (each director) Bookkeeper bond Director and officer liability Umbrella liability Building and contents and water system American Protection Stock None Liability: General: Bodily in,jury U. S. Fire Insurance Company Stock None Property damage Automotive (nonowned): Bodily injury Property damage Weslchester Tnsurancz Comliany Stock Contractor's equipment Sun Insurance of New York Stock None Th~s statement, preparzd from the policies, is intended only as a descriptive summary; no expression of opinion as to the adequacy of the coverage is intended. TROPHY CLUB MUNIClPAL UTILITY DISTRICT NO. I BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS September 30, 1992 Complete district mailing address: 100 Municipal Drive, Trophy Club, Texas 76262 District business telephone number: (817) 430-191 1 Term of Fees office elected and expense Resident and expires or reimbursement of Name and address date hired 09-30-92 Title at year-end District? Board members Constance S. White 119 Trophy Club Drive Trophy Club, Texas 76262 05-90105-94 $ 850 President Yes T. A. Neidenberger 1033 Sunset Drive Trophy Club, Texas 76262 05-88105-96 $ 850 Vice-president Yes John V. Peters 402 Hilltop Court Tropliy Club, Texas 76262 1-91105-96 $ 0 Director Yes George Knowles 102 Fresh Meadow Trophy Club, Texas 76262 05-90105-94 $ 750 Director Yes Susan H. McCabe 1136 Sunset Drive Appointed Trophy Club, TX 76262 11-91105-94 $ 700 Secretary-Treasurer Yes Note: No director has any business or family relationships (as defined by the Texas Water Code) with major landowners in the District, with the District's developer or with any of the District's consultants. Key administrative personnel Roger Unger 102 Carnoustie Trophy Club, Texas 76262 04-15-86'" $44,500 General Manager Yes " Assumed responsibility of General Manager on 10-15-89. (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL AND CONSULTANTS September 30, 1992 (Continued) Term of Fees office elected and expense Resident and expires or reimbursement of Name and address date hired 09-30-92 Title at vear-end District? Consultants Denton County Appraisal District P. 0. Box 2816 Denton, Texas 04-01-81 $12,188 Assessor Donna Welsh P. 0. Box 130 Trophy Club, Texas 76262 12-01-87 $10,310 Tax Collector Decker, Jones, McMackin, McClane, Hall & Bates 2400 City Center I1 Fort Worth, Texas 76102 1975 James L. Buxton, P.C. 5017 S. Hulen Suite 4 Fort Worth. Texas 76132 1983 Carter & Burgess 1100 Macon Street Fort Worth, Texas 76102 1983 No Yes $63,045 Legal Counsel No Certified Public $11,950 Accountant No Consulting $27,150 Engineers No TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. ! QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1992 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 UPDATiD?" block show how often entries are made to each record. If entries are made less often than monthly, write in the frequency under "HOW OFTEN?". Indicate who provided the information for the table below: Cathy Moreas USED? HOW KEPT? WHEN UPDATED? BY BY HOW RECORD -- NO YES - HAND COMPUTER DAIL\I' WEEKLY MONTHLY OFTEN Description of . .i ccounts Chart of accounts General journal Cash receipts journal Cash disbursements journal Check register General ledger Customer subsidiary ledger Fixed assets ledger Bank reconciliation Trial balance 2. Does the district use double entry accounting? 3. What is the usual location of the accounting records? 100 Municipal Drive, 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? If Yes is checked for Question 4, have these topics been discussed in a Management Letter to the water district's Board of Directors? Yearly X X (Continued) -42- TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1992 (Continued) 5. Did you obtain representation from the Board of Directors of the water district that all records of the water district were made available to you for your examination? 6. Did the water district: a. Use the Capital Projects Fund and Debt Service Fund only for purposes authorized by the Board of Directors of the water district andlor 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 illembers 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? h. Draw checks only on funds approved by [he Board of Directors and signed by authorized personnel? X - YES NO X - - YES NO X - - YES NO X - - YES NO LI1- YES NO X - - YES NO X - - YES NO X - - YES NO X - - YES NO (I) No intergoverr~rnental transactions (Continued) -43 - TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1992 (Continued) 7. Note: A management letter is an audit scope requirement of the Water District Accountine Manual. a. The date of the most recent management letter was November 22, 1992. b. Were recommendations explained to and discussed with adniinistratile officials of the water district? 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 balks. After consideration of the applicable laws pertaining to the specific water district, did the depository bank provide adequate security of the correct type? Please indicate for 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 (par value) 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 - Team Bank of Fort Worth b. Amount of F.D.I.C. coverage (if member bank) c. Amount of bond or other security pledged as of Lhe end of the fiscal period (par value) 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) X - - YES NO X - - YES NO X - YES NO NONE $ 12,534 09-30-92 NONE (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1992 (Continued) a. The name of the depository bank - State of Texas, Tex Pool 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 (par value) 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 - Nations Bank of Texas 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 (par value) 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 a sub-contracted tax collector. 10. Was the tax assessor-collector bonded as required by law? 11. What was: a. The tax assessor-collected bonded for? b. The greatest amount of the district's taxes in tile tax assessor-collector's possession at any one time? c. The frequency of tax receipts deposits with the bonded depository? 12. We (check one): a. Actually examined the records of the tax assessor-collector b. Received written confirmation for tax data from the tax assessor-collector c. Accepted tax data furnished by the district's administrative offices NONE NONE NONE $ 369.282 01-01-92 X -- YES NO $ 10.000 (1) WEEKLY (1) Receipts are deposited as received into district accounts. (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I QUESTIONNAIRE TO BE COMPLETED BY AUDITOR Year ended September 30, 1992 (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 explanations and/or references to notes, schedules (or comments in the auditor's report letter) for responses marked (*). X - - YES NO A - - YES NO Current Assets Cash: Unrestricted cash Restricted cash Total cash TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I WATER AND SEWER ACCOUNT ONLY BALANCE SHEET September 30, 1992 ASSETS Temporary investments - Unrestricted Total cash and temporary investments Accounts receivable less allowance of $113,070 Prepaid expenditures Tokl current assets LIABILITIES Current Liabilities Accounts payableiaccrued expenditures Refundable deposits Total current liabilities FUND EOUITY Fund balance Reserved for customer deposit Unreserved Total fund balance Total liabilities and fund equity TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I WATER AND SEWER ACCOUNT ONLY BUDGET AND ACTUAL Year ended September 30, 1992 Revenues: Service revenues $1,375,709 Inspection and tap fees 8,843 Penalty revenues 17,428 Interest income 7,722 Miscellaneous 5.002 Total revenues 1.414.704 Expenditures: Water and Sewer Department: Salaries, wages, benefits and taxes Contract labor Water purchases Utilities and telephone Consumable supplies Maintenance and repairs Capital expenditures Engineering fees Rent lease equipment Bad debt Other Total Water arid Sewer Department Administrative: Salaries, wages, benefits and taxes Professional fees: Legal Auditing Engineering Maintenance and repairs Contract labor Printing and office supplies Utilities and telephone Insurance and bonds Variance favorable - lunfavorable) (Continued) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I WATER AND SEWER ACCOUNT ONLY BUDGET AND ACTUAL Year ended September 30, 1992 (Continued) Expenditures: (continued) Administrative: (continued) Travel and seminars 3,500 5,502 Legal notices and publications 1,000 - Directors' fees 2,300 1,500 Other 21,300 14,179 Capital expenditures 12.500 7.705 Total administrative 395.697 314.509 Total expenditures 1.372.367 1.268.645 Excess (deficiency) of revenues over (under) expenditures $ 42.337 $ (62,906) Fund balance, beginning of year Fund balance, end of year Variance favorable - (unfavorable) TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I FIRE DEPARTMENT ACCOUNT ONLY BALANCE SHEET September 30, 1992 ASSETS Current Assets: Unrestricted cash Ad Valorem taxes receivable Accounts receivable Total current assets Current Liabilities: Accounts payable/accmed expenditures Interfund payables Total current liabilities Deferred Income Total liabilities Fund deficit: Unreserved Total liabilities and fund equity LIABILITIES FUND EOUITY TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I FIRE DEPARTMENT ACCOUNT ONLY BUDGET AND ACTUAL Year ended September 30, 1992 Budget Actual Revenues: Senlice $ 10,200 $ 21,330 Ad valorem property Lax revenues 182,140 194,036 Ad valorem property tax penalty 1,500 2,593 Interest income 3.000 2.897 Total revenues 196.840 220.856 Expenditures: Administrative Salaries, wages, benefits and taxes Utilities and telephone Interest Notelbond payments Schools and training Uniforms Fuel and supplies Insurance and bonds Capital expenditures Printing and office supplies Maintenance and repairs Remote communications Professional fees: Legal Auditing Tax office contract services Other Total expenditures 196.319 182.956 Excess of revenues over expenditures $ 521 $ 37,900 Fund deficit, beginning of year (41.647) Fund deficit, end of year $ (3.747) Variance favorable - lunfavorablel Current Assets: Unrestricted cash Accounts receivable Ad Valorem taxes Interfund receivables TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I MUD I OPERATIONS ACCOUNT ONLY BALANCE SHEET September 30, 1992 ASSETS Total current assets Current Liabilities - Accounts payable Deferred Income Total labilities Fund balance - unreserved Total liabilities and fund equity LIABILITIES FUND EOUITY TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I MUD 1 OPERATIONS ACCOUNT ONLY BUDGET AND ACTUAL Year ended September 30, 1992 Revenues: Ad valorem property tax revenues $ 36,131 $ 37,497 Reimbursement for line relocation - 671,100 Interest earned 2,500 52,648 Sale of assets - 312,248 Other - 1,049 Total revenues 38.631 1.074.542 Expenditures: Administrative Professional fees: Legal Auditing Engineering Printing and office supplies Insurance and bonds Travel and seminars Ad valorem property tax office contract services Legal notices and publications Bond issue Directors' fees Other Total Administrative 59.900 72.417 Excess (deficiency) of revenues over (under) expenditures $ (21.269) $1,002,125 Fund balance, beginning of year 435.971 Variance favorable - (unfavorablel Fund balance, end of year $1.438.096 Land Buildings Water System Sewage System Drainage System Machinery and equipment Autos and trucks Furniture and fixtures Engineering fees Capitalized construction period costs Less accu~nulated depreciation Net General Fixed Assets Estimated Useful Lives: WaterISewer System Automobile All other assets TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I NET GENERAL FIXED ASSETS BY FUNDING SOURCE September 30, 1992 Water and Sewer Department and Administrative Fire MUD I Deuartment Ouerations MUD I Bonds and Developers Total 40 years 3 years 10 years TROPHY CLUB MUNICIPAL UTILITY DISTRICT NO. I CERTIFICATE OF THE BOARD OF DIRECTORS Year ended September 30, 1992 Tro~hv Club Munici~al Utilitv District No. 1 Name of Water District Denton County We, the undersigned, do hereby certify that the audit report of the above-named Water District for the fiscal year ended September 30, 1992, was received by the Board of Directors on the Lfirday of ~A~J~AE~ , 1993 and was reviewed and h() approved; ( ) disapproved at a meeting of the 5+ Board of Directors of the Water District on thedl day of 3/ OSvL, & VLW Signature of Board Secretary ,f&&?L~U /&&& Signature of Board President