HomeMy WebLinkAboutTown Audit 09-30-1998TOWN OF WESTLAKE, TEXAS
PRINCIPAL OFFICERS
SEPTEMBER 30, 1998
MAYOR Scott Bradley
ALDERMEN Charla Bradshaw, Mayor Pro -Tem
Abe Bush
Jerry Dinsmore
David Loeser
Fred Held
CITY SECRETARY Ginger Crosswy
it
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, 1998. 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, 1998 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
March 18, 1999
0)
TOWN(]FWE,STLAKE, TEXAS
COMBINED BALANCE SHEET
ALL FUND TYPES
SEPTEMBER 30, l998
September 3O, l99Q September 30` lVV7
PUBLIC FIXED ASSET { M
GBNBItALFDNDG FACO~l7lB8 ACCOUNT ONLY) ONLY)
Operating Development 7SHC CORP. GROUP TOTAL TOTAL�
ASSETS
Cash % 1,646`872 $ 2,172`862 $ 248,098 $ 10,268 $ ' $ 4.078,180 $ 2'402,476
Receivables
Contracted Receipts - - 125,313 ' - 125'313 76,151
MieccUuoonno - - 3,500 - - 3,500 -
Office Equipment 18`045 18,045 14,107
Utility Infrastructure Costs -___ -__. - __ - __ 45,382 45,382 45,382
TOTAL ASSETS $ 1,646,872 $ 2,172,862 $ 376,911 18,268 $ 63,427 $ 4,270,340 $ 2538 l96
LIABILITIES
Accounts payable $ I29J10 $ - __$ 76,141 $ - $ -__ $ 205251 $ 20,830
TOTAL LIABILITIES 120,110 76,141 -__ - __ 205,251 20,830
FUND EQUITY
Fund balances:
Investment inFixed Assets - ' ' ' 63,427 63,427 59,560
I)omigootcd - 2,172,862 100,770 10'268 - 2,483,900 1,099,092
Undesignated |,5l7,762 - __ -__ - __ 1,517,762 1,358,705
TOTAL FUND EQUITY 1,517,762 2]72,862 300,778 10,268 63,427 4,065,088 2,517,366
TOTAL LIABILITIES AND
FUND EQUITY $ 1,646,872 $ 2,172,862 $ 376,911 $ 10,268 $ 63,427 $ 4,270,340 $ 2,538,196
The accompanying notes are unintegral part oYthe finxnoiu( statements.
TOWN OFWBSTLAB3E'TEXAS
COMBINED STATEMENT ()F REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
ALL GOVERNMENTAL FUND TYPES
YEAR ENDED SEPTEMBER 3O` 1998
September 30, 1998 September 30, 1997
Public (MEMORANDUM (MEMORANDUM
G8NERALFOND3 Facilities ONLY) ONLY)
Operating Zevelopmen ?SFIC {ow— TOTAL TOTAL
REVENUES
Ionoo
Suioo $ 1,093.527 $ 1,084,893 $ ' * - $ 2,178'419 $ 1.530.280
Fmoo6iae 184.528 ' - - 184,528 161,407
Interest income 84.529 87.043 6.887 188 178'646 123`261
Building permits and fees 79`051 - - - 79,051 41`638
Fines and penalties 3.997 ' ' - 3.997 5^099
Contractual receipts from operations of
Texas Student Housing Corporation
faoJidno ' - 288,372 - 288,372 85`327
Other miscellaneous income 1,259 ' ' - 1259 18000
TOTAL REVENUES 1,446,890 1,171,936 295,259 188 2914272 1957012
OPERATING EXPENDITURES
Current
6uueml Government 1,287,833 - __ 6,434 --- 1,294,267 1260719
TOTAL OPERATING EXPENDITURE S 1,287,833 -__ 6,434 - __ 1294267 1268719
OTHER EXPENDITURES
Scholarships paid iocurrent year - __ -___ 76,141 - __ 76,141 20,830
TOTAL OTHER EXPENDITURES ' - 76j41 ' 76141 20,830
TOTAL EXPENDITURES 1,287,833 - __ 82,575 -__ 1370408 1281549
Excess nyrevenues over oxpcuJiiumo 150.057 1,171.936 212.684 188 1.543,864 675.469
Fund Balance'September 30. l9Y7 1,358,705 1,000,926 88,086 10\080 2,457,797 1782334
Fund Balance-September 30. (998 $ 1,517,762 $ 2,172,862 $ 300,770 $ 10,268 4001661 $ 2,457,797
The accompanying notes are oointegral part ofthe financial statements.
4
TOWN OF WESTLAKE, TEXAS
GENERAL FUND
BUDGET TO ACTUAL -
SCHEDULE OF EXPENDITURES
YEAR ENDED SEPTEMBER
30, 1998
Actual
--------- Year ended
September 30, 1998
----------
Year Ended
Operating Fund
Budget
Actual Variance
September 30, 1997
City secretary
$22,020
$18,076
$3,944
$17,538
Payroll taxes
1,680
1,517
163
1,745
Office supplies
4,500
2,997
1,503
4,123
Capital outlay - equipment
3,900
3,858
42
835
Capital outlay - road repairs
20,000
-
20,000
-
Capital outlay - water line infrastructure oversizing
-
-
-
11,794
Maintenance and repairs
3,125
354
2,771
3,398
Postage and courier
1,920
1,931
(11)
1,928
Miscellaneous
3,000
2,414
586
869
Accounting and consulting
27,000
5,000
22,000
35,593
Engineering
60,000
58,522
1,478
68,118
Professional consulting
18,000
46,369
(28,369)
73,936
Contracted services - police & fire
39,400
18,113
21,288
32,273
Legal
950,000
1,034,500
(84,500)
879,121
Interlocal funding - community service expense
8,000
8,250
(250)
4,500
Inspection
30,000
2,528
27,472
26,261
Dues, printed material, and video material
1,300
2,177
(877)
1,167
Election expense
750
71
679
1,151
Telephone & utilities
2,400
2,452
(52)
2,479
Planners fees
69,000
59,575
9,425
69,258
Insurance
3,500
3,209
291
374
Public notice
2,000
1,234
766
1,638
Training and seminars
2,500
1,784
716
1,573
Office & meeting location rent
17,616
12,902
4,714
16,154
Total Operating Fund
1,291,611
1,287,833
3,778
1,255,826
Westlake Development Corporation
Legal Fees
-
-
-
250
Miscellaneous expense
-
-
-
5
Total Westlake Development Corporation
-
-
-
255
Public Facilities Corporation
Miscellaneous Expense
-
-
-
5
Total Public Facilities Corporation
-
-
-
5
Texas Student Housing Corporation (TSHC)
f
.__ Administrative and office expense
947
385
Postage and office supplies
-
37
Travel expense
832
2,027
Legal and professional
-
403
Meeting expense
4,655
1,781
6,434
4,633
{ Scholarships paid in current year
76,141
20,830
Total Texas Student Housing Corporation (TSHC)
s
82,575
25,463
The accompanying notes are an integral part of the financial statements.
G",
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) 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, as
amended.
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.
7.1
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, 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 ovesizing costs are
maintained in this fund pending the creation of an Enterprise fund. Property, plant and
equipment acquired or constructed for general governmental operations are 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
budgeted future operations. The designated fund balances for governmental funds
represent the amount that has been legally identified for specific purposes.
7
TOWN OF WESTLAKE, TEXAS
NOTES TO FINANCIAL STATEMENTS (Continued)
Revenues and expenditures/expenses
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, 1998 are composed of the following amounts:
INTEREST
ACCOUNT NAME NUMBER LOCATION RATE
General Fund
Operating Acct 6789085 Keller State Bank 1.5%
TexPool 22008111000 TexPool 5.47% (Variable)
Subtotal —
Operating Funds
Operating Acct. -
Development
Fund
6786289
Keller State Bank
TexPool Account
22008750111
TexPool
TexPool Account
22008750000
TexPool
Subtotal —
Development
Corporation
Public Facilities
Corp. Operating Acct
6786461
Keller State Bank
Subtotal - Public
Facilities Corp.
TSHC Operating
Account
6762694
Keller State Bank
TexPool Account
22008650000
TexPool
Subtotal TSHC
Total Cash
N.
1.5%
5.47% (Variable)
5.47% (Variable)
1.5%
3.4%
5.47% (Variable)
3,057
1.643,815
1,646,872
2,134
920,213
1,250,515
2.172,862
10,268
10,268
17,062
231,036
248,098
$4,078,100
TOWN OF WESTLAKE, TEXAS
NOTES TO FINANCIAL STATEMENTS (Continued)
Note 3 Litigation
At September 30, 1998, the Town was involved with several lawsuits involving property
annexations, disannexation or other disputes. Subsequent to year end, most of these
lawsuits were adjudicated, as discussed in the following two paragraphs.
As a result of settlement agreements entered into on October 5, 1998, the Town had a
substantial amount of undeveloped land returned to its exclusive jurisdiction.
On December 1, 1998, another significant lawsuit was resolved in the Town's favor.
This matter resulted in the return of approximately 500 acres of developed real estate to
the exclusive jurisdiction of the Town.
Finally, the Town is a party to a lawsuit which seeks to nullify its annexation of
approximately 60 acres of undeveloped land. The Town is vigorously defending this
legal action, which was pending at year end as well as the date of this report. The legal
proceedings for this case has not progressed to a point that an assessment of the potential
outcome can be determined at the date of this report.
Note 4 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
activity.
Note 5 Subsequent Events
As a result of the legal settlements noted in Note 3, above, the owners and developers of
some of this property now have an agreement for the development of much of this
undeveloped land. The development of this land could result in substantial increases in
revenues, and associated costs of providing services, by the Town in future years.
The Town has filed an application for a Certificate of Convenience and Necessity with
the Texas Natural Resource Conservation Committee to provide water and sewer service
within the corporate limits of the Town. Originally, this application had been protested.
However, this opposition to the Town's application has been withdrawn.
f 9