HomeMy WebLinkAboutTown Audit 09-30-1997TOWN OF WEST LAKE9 TEXAS
FINANCIAL STATEMENTS
as of September 30, 1997
CHARLES HAYNES, CPA
Certified Public Accountants
TOWN OF WESTLAKE, TEXAS
PRINCIPAL OFFICERS
SEPTEMBER 30, 1997
MAYOR Scott Bradley
ALDERMEN Charla Bradshaw, Mayor Pro -Tem
Abe Bush
Jerry Dinsmore
David Loeser
Fred Held
CITY SECRETARY Ginger Crosswy
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Charles Haynes CPA
1903 Central Drive, Suite 300
Bedford, Texas 76021
(817) 545-1300 / (214) 748-2222
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Aldermen
Town of Westlake, Texas
We have audited the accompanying general purpose financial statements of the Town of
Westlake, Texas as of and for the year ended September 30, 1997. These financial
statements are the responsibility of the entity's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the general purpose financial statements referred to above present fairly,
in all material respects, the financial position of the Town of Westlake, Texas at
September 30, 1997 and the results of its operations and changes in financial position for
the year then ended in conformity with generally accepted accounting principles.
Respectfully submitted,
Charles Haynes CPA
February 27, 1998
TOWN OF WEST -LAKE, TEXAS
COMBINED BALANCE SHEET
ALL FUND TYPES
FUND EQUITY
Fund balances:
Investment in Fixed Assets - - - 59,569 59,569
Designated - 1,000,926 88,086 10,080 - 1,099,092
Undesignated 1,358,705 - - 1,358,705
TOTAL FUND EQUITY 1,358,705 1,000,926 88,086 10,080 59,569 2,517,366
TOTAL LIABILITIES AND
FUND EQUITY $ 1,358,705 $ 1,000,926 $ 108,916 $ 10,080 $ 59,569 $ 2,538,196
The accompanying notes are an integral part of the financial statements.
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SEPTEMBER 30, 1997
PUBLIC FIXED ASSET
(NIEMORANDUM
GENERAL FUNDS
TSHC
FACILITIES
ACCOUNT
ONLY)
Matin Development
CORP.
GROUP
TOTAL
ASSETS
Cash
$ 1,358,705 $ 1,000,926 $
32,765 $
10,080 $
- $
2,402,476
Contractual Receipts Receivable
76,151
76,151
Utility Infrastructure Costs
45,382-
45,382
Office Equipment
- -
-
14,187
14,187
TOTAL ASSETS
$ 1,358,705 $ 1,000,926 $
108,916 $
10,080 $
59,569 $
2,538,196
LIABILITIES
Accounts payable
$ - $ - $
- $
$
- $
-
Accrued expenditures
- -
20,830
-
20,830
Deferred revenue
- -
-
-
-
TOTAL LIABILITIES
- -
20,830
-
20,830
FUND EQUITY
Fund balances:
Investment in Fixed Assets - - - 59,569 59,569
Designated - 1,000,926 88,086 10,080 - 1,099,092
Undesignated 1,358,705 - - 1,358,705
TOTAL FUND EQUITY 1,358,705 1,000,926 88,086 10,080 59,569 2,517,366
TOTAL LIABILITIES AND
FUND EQUITY $ 1,358,705 $ 1,000,926 $ 108,916 $ 10,080 $ 59,569 $ 2,538,196
The accompanying notes are an integral part of the financial statements.
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The accompanying notes are an integral part of the financial statements.
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TOWN OF WESTLAKE, TEXAS
COMBINED STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 30, 1997
General Funds
(NvIEMORANDUM
ONLY)
Operating Development TSHC
Public Facilities
TOTAL
REVENUES
Corr)-
Corn.
Taxes
Sales & Beverage
$ 799,112 $ 731,168 $ -
$
$ 1,530 280
Franchise
161,407 - -
161,407
Interest income
91,334 30,961 881
85
123;261
Building permits and fees
41,638 - -
41,638
Fines and penalties
5,099 - -
5,099
Contractual receipts from operations of
Texas Student Housing Corporation
facilities
- - 85.327
85,327
Other miscellaneous income
- - -
10,000
10,000
TOTALREVENUES
1,098,590 762,129 86,208
10,085
1,957,012
OPERATING EXPENDITURES
Current
General Government
1255.826 255 4,633
5
1,260,719
TOTAL OPERATING EXPENDITURES 1,255,826 255 4,633
5
1260,719
OTHER EXPENDTTITRES
Scholarships
- - 20,830
20.830
TOTAL OTHER EXPENDITURES
- - 20,830
20,830
TOTAL EXPENDITURES
1,255,826 255 25,463
5
1,281,549
Excess of revenues over expenditures before
interfundtransfers
(157,236) 761,874 60,745
10,080
675,463
Interfund transfers in (out)
- - -
-
-
Excess of revenues over expenditures and
interfund transfers
(157,236) 761,874 60,745
10,080
675,463
Fund Balance - September 30,1996
1,515,941 239,052 27,341
-
1,782,334
Fund Balance - September 30, 1997
$ 1,358,705 $ 1,000,926 $ 88,086
$ 10,080
$ 2,457,797
The accompanying notes are an integral part of the financial statements.
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TOWN OF WESTLAKE, TEXAS
GENERAL FUND
BUDGET TO ACTUAL - SCHEDULE OF EXPENDITURES
YEAR ENDED SEPTEMBER 30, 1997
Operating Fund
City secretary
Payroll taxes
Office supplies
Capital outlay - equipment
Capital outlay - water line infrastructure oversizing
Maintenance and repairs - streets and equipment
Postage
Miscellaneous
Accounting and consulting
Professional consulting
Engineering
Contracted services - police & fire
Legal
Interlocal funding - community service expense
Inspection
Bank charges
Dues
Election expense
Telephone & utilities
Planners fees
Insurance
Meeting expense
Public Notices
Training, seminars & publications
Office & meeting location rent
Total Operating Fund
Westlake Development Corporation
Legal fees
Miscellaneous expense
Total Westlake Development Corporation
Total expenditures - General Fund
F
Budget Actual Variance
$20,000
$17,538
$2,462
2,520
1,745
775
10,200
4,123
6,077
1,000
835
165
12,000
11,794
206
115,500
3,398
112,102
2,000
1,928
72
1,500
402
1,098
40,000
35,593
4,407
75,000
73,936
1,064
65,000
68,118
(3,118)
47,000
32,273
14,727
900,000
879,121
20,879
4,920
4,500
420
36,000
26,261
9,739
500
467
33
1,200
1,167
33
1,200
1,151
49
2,600
2,479
121
115,000
69,258
45,742
7,500
374
7,126
7,000
6,338
662
2,000
1,638
362
2,500
1,573
927
9,792
9,816
(24)
$1,481,932 $1,255,826 $226,106
The accompanying notes are an integral part of the financial statements.
250
5
255
L256,081
TOWN OF WESTLAKE, TEXAS
Texas Student Housing Corporation (TSHC)
SCHEDULE OF EXPENDITURES
YEAR ENDED SEPTEMBER 30, 1997
Texas Student Housing Corporation (TSHC)
Contract labor
385
Meeting expense
1,781
Postage / Office supplies
37
Travel expense
2,027
Legal & professional
403
4,633
Scholarships expense
20,830
Total Texas Student Housing Corporation (TSHC) 25,463
1.1
The accompanying notes are an integral part of the financial statements..
TOWN OF WESTLAKE, TEXAS
Public Facilities Corporation
SCHEDULE OF EXPENDITURES
YEAR ENDED SEPTEMBER 30, 1997
Public Facilities Corporation
Miscellaneous expense
Total Public Facilities Corporation expense
7
The accompanying notes are an integral part of the financial statements.
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TOWN OF WESTLAKE, TEXAS
NOTES TO FINANCIAL STATEMENTS
Note 1 Summary of Significant Accounting; Policies
A summary of significant accounting policies applied in the preparation of the
accompanying financial statements follows:
Description of Funds
The Town operates under a Board of Aldermen -Mayor -Secretary form of
government and has established certain funds in conformity with generally
accepted accounting principles.
The following types of funds and groups of accounts are used by the Town in
accounting for its financial activities:
General Fund - The Town currently accounts for its financial activity in general
funds: the Operating Fund and, the Westlake Development Corporations — 4A and
4B (Development).
The Operating Fund is a governmental fund used to account for all financial
resources except those required to be accounted for in another fund or account
group.
The two Westlake Development Corporations receive funding from a one-half
(2/2) percent sales tax for each development corporation; approved by the voters.
The purpose of the two Development Corporations is to promote, for the public
welfare, economic development for areas within the Town of Westlake as
authorized by the State under the Texas Economic Development Act of 1979 and
its amendments.
Component units — Component unit entities consist of the Texas Student Housing
Corporation (TSHC) and the Lone Star Public Facilities Corporation (Public
Facilities Corporation).
The Texas Student Housing Corporation is a Texas non-profit corporation acting
on behalf of the Town, that purchases and operates student -housing facilities. The
contracts under which these facilities are operated are restrictive, however, they
provide for funds to be made available, which the Town awards to local students
in the form of college scholarships.
Lone Star Public Facilities Corporation is a Texas non-profit corporation that
acts on behalf of the Town to further the public purposes of the Public Facilities
Corporation Act, as its duly constituted authority and instrumentality.
Account Groups -
The Fixed Asset Account Group accounts for the capital assets acquired by the
Town.
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TOWN OF WESTLAKE, TEXAS
NOTES TO FINANCIAL STATEMENTS (Continued)
Basis of Accounting
The Town has prepared and approved an annual budget on the same basis that the Town
maintains its accounts. The modified accrual and accrual basis of accounting, as
appropriate, are utilized in measuring financial position and operating results as follows:
Governmental fund revenues and expenditures are recognized on the modified
accrual basis. Revenues are recognized in the accounting period in which they
become available and measurable. Expenditures are recognized in the accounting
period in which the fund liability is incurred, if measurable. Within the
governmental funds, the more significant revenues which are not accrued are
licenses and permits, fines and charges for other services provided by the Town.
Budgets and the Budgetary Process
The Board of Aldermen has adopted an annual operating budget, which can be amended
by the Board throughout the year. The formal budgetary accounting is to be employed as
a management control for all funds of the Town; however, legal budgets will be adopted
only for General Fund groups.
At the fund level, actual expenditures cannot exceed budgeted appropriations; however,
with proper approval by the Board of Aldermen, budgetary transfers between
departments can be made.
Property, Plant, and Equipment
Fixed assets used in governmental fund type operations are accounted for in the General
Fixed Assets Account Group. Public domain (infrastructure) general fixed assets
consisting of certain improvements other than buildings, such as roads, sidewalks, and
bridges, are not capitalized. However, utility system engineering and oversizing costs are
maintained in this fund pending the creation of an Enterprise Fund. Property, plant, and
equipment acquired or constructed for general governmental operations is recorded as an
expenditure in the fund making the expenditure and capitalized at cost in the General
Fixed Assets Account Group in accordance with the Town's capitalization criteria.
Property, plant, and equipment is stated at cost. Where cost could not be determined
from the available records, estimated historical cost was used to record the estimated
value of the assets. Assets acquired by gift or bequest are recorded at their fair market
value at the date of transfer.
Fund Equity
s The unreserved fund balances for governmental funds represent the amount available for
budgeting future operations. The reserved fund balances for governmental funds
represent the amount that has been legally identified for specific purposes.
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TOWN OF WESTLAKE, TEXAS
NOTES TO FINANCIAL STATEMENTS (Continued)
Revenues and expenditures/enenses
Revenues for governmental funds are recorded when they are determined to be both
measurable and available. Generally, tax revenues, fees and non tax revenues are
recognized when received. Grants from other governments, if any, are recognized when
qualifying expenditures are incurred. Expenditures for governmental funds are recorded
when the related liability is incurred.
Property tax revenues
The Town does not assess ad valorem taxes on real or personal property.
Note 2 Cash and Required Deposits
The cash balances at September 30, 1997 are composed of the following amounts:
INTEREST
BOOK
ACCOUNT NAME NUMBER LOCATION
RATE
BALANCE
General Fund
6786289
Keller State Bank
Operating Acct 6786263 Keller State Bank
2%
(4,547)
TexPool 22008111000 TexPool
Variable
1,363,252
Subtotal Oper. Fund
TexPool Acct
1,358,705
Operating Acct. -
Development
Fund
6786289
Keller State Bank
2%
2,093
Tex Pool Acct
22008750111
TexPool
Variable
343,275
TexPool Acct
22008750000
TexPool
Variable
655,558
Subtotal Dev. Corp
1,000,926
Public Facilities Corp
Operarting Acct
6762694
Keller State Bank
2%
10,080
Subtotal Pub Fac
10,080
Corp
Keller State Bank
2%
32,765
TSHC Oper. Acct.
32,765
Subtotal TSHC
Total Cash $2,402,476
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TOWN OF WESTLAKE, TEXAS
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 3 Component Units of the Town
In the current fiscal year, the Town created an additional Development Corporation
funded by an additional one-half (V2) percent sales tax, as approved by the Town's
qualified voters. The Development Corporation is similiar to the initial Development
Corporation created by the Town and has been established pursuant to the guidelines set
forth in the Texas Development Corporation Act.
In the current fiscal year, the Town created a public facilities corporation to allow the
Town to address the development and/or use of these types of facilities within the
respective statutory guidelines related to these component entities. As of the date of
issuance of these financial statements, no commitments or other significant activity had
occurred with respect to this entity.
Note 4 Litigation
The Town is involved with several lawsuits involving property annexation, disannexation
or other disputes. One of the lawsuits pertains to matters, which have the potential
involvement of a significant dollar amount of future revenues to the Town_ The Town is
vigorously defending and/or pursuing all legal actions pending at year end, as well as the
date of this report. The legal proceedings for all these cases has not progressed to a point
that an assessment of the potential outcome can be determined at the date of this report.
Note 5 Commitments and Contingencies
The Town has commitments relative to municipal services and contractual relationships
concerning certain utilities and public safety resources, which are normal in its ongoing
operating activity.
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