12-31-2001district #1ANNUAL FINANCIAL REPORT
OF THE
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
NINE MONTHS ENDED DECEMBER 31, 2001
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' TABLE OF CONTENTS
PAGE
NUMBER
' INDEPENDENT AUDITOR'S REPORT 1
NOTE: This is the final audit of the District.
1
GENERAL PURPOSE FINANCIAL STATEMENTS
COMBINED BALANCE SHEET -ALL GOVERNMENTAL
'
FUND TYPES AND ACCOUNT GROUPS
2
COMBINED STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL
FUND TYPES
3
'
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
4
NOTES TO FINANCIAL STATEMENTS
5-13
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SUPPLEMENTAL INFORMATION
'SUPPLEMENTAL
SCHEDULES INC i MD WITHIN THIS REPORT
C. AUDITOR'S REPORT ON SUPPLEMENTAL SCHEDULES
14
D. NOTES REQUIRED BY THE WATER DISTRICT ACCOUNTING
MANUAL
5
E. SERVICES AND RATES
15
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F. SCHEDULE OF GENERAL FUND EXPENDITURES
17
G. SCHEDULE OF TEMPORARY INVESTMENTS
18
H. ANALYSIS OF TAXES LEVIED AND RECEIVABLE
19
I. ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
21
'
J. GENERAL LONG -TERM DEBT SERVICE REQUIREMENTS
BY YEARS
22
K. ANALYSIS OF CHANGES IN GENERAL LONG -TERM DEBT
23
'
L. COMPARATIVE STATEMENT OF REVENUES AND
EXPENDITURES, GENERAL FUND, AND DEBT SERVICE
FUND - FOUR YEARS AND NINE MONTHS ENDED DECEMBER 31, 2001
24
'
M. INSURANCE COVERAGE
25
N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL,
'
AND CONSULTANTS
26
NOTE: This is the final audit of the District.
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To zo �or
CERTIFIED PUBLIC ACCOUNTANT
City of Schertz
Guadco Municipal Utility District No.1
Guadalupe and Comal Counties, Texas
I have audited the accompanying general purpose financial statements of Guadco Municipal
Utility District No. 1 as of December 31, 2001, and for the nine months then ended as listed in the table
of contents. These general purpose financial statements are the responsibility of the Guadco
Municipal Utility District No.1 management. My responsibility is to express an opinion on
these financial statements based on my audit.
conducted my audit in accordance with generally accepted auditing standards and generally
accepted government auditing standards accepted in the United States of America. Those standards
require that I 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. 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 Guadco Municipal Utility District No. 1 as
of December 31, 2001, and the results of its operations and changes in fund balances for the
nine months then ended in conformity with generally accepted accounting principles
accepted in th ited States of America.
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' J e 6, 2002
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352 Landa St. • New Braunfels, TX 78130
830 - 625 -6073 830 - 625 -8225 FAX
e -mall: jimr @the - cia.net
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Member of American Institute of Certified Public Accountants
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ACCOUNT GROUPS
GENERAL GENERAL
FIXED LONG -TERM
ASSETS DEBT
TOTALS
(MEMORANDUM ONLY)
12/31/01
3/31101
358,488
72,006
-
326,725
56,799
18,400
3,156
50,608
-
3,865
-
295
9,542
-
3,783,344 - 3,783,344 3,783,344
- 215,000 215,000 383,811
- - 106,189
3,783,344 215,000 4,426,329 4,745,243
- 2,247
6,440
- - 41,550
41,550
- - 52,160
52,085
- - 9,542
-
- - 20,428
18,400
- 215,000 215,000
490,000
- 215,000 340,927
608,475
3,783,344 - 3,783,344
3,783,344
- 330,755
387,676
- (28,697)
(34,252)
3,783,344 4,085,402
4,136,768
3,783,344 215,000 4,426,329
4,745,243
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -ALL GOVERNMENTAL FUND TYPES
NINE MONTHS ENDED DECEMBER 31, 2001
REVENUES
Property Taxes
Water Service
Sewer Service
Penalty and Interest
Standby & Tap Connection Fees
Interest on Time Deposits
Total Revenues
Debt Service
Principal Retirement
Interest and Fiscal Charges
Purchase Water and Sewer Services
Professional Fees
Director Fees
Contracted Services
Utilities
Materials and Supplies
Repairs and Maintenance
Tax Collection Services
Insurance
Other Expenditures
Capital Expenditures
Total Expenditures
Excess of Revenues Over (Under)
Expenditures
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Transfers
FUND BALANCES AT END OF YEAR
TOTALS
(MEMORANDUM ONLY)
GOVERNMENTAL FUND TYPES Nine Months
DEBT CAPITAL Ended
GENERAL SERVICE PROJECTS 12/31/01 2001
36,298
222,485
- 258,783
339,943
191,634
-
- 191,634
249,825
88,939
-
- 88,939
119,608
579
2,564
- 3,143
21,942
4,200
-
- 4,200
4,210
766
7,081
- 7,847
12,587
322,416
232,130
- 554,546
748,115
5,555
275,000
- 275,000
260,000
-
11,515
- 11,515
29,140
182,193
-
- 182,193
165,759
7,130
-
- 7,130
6,883
6,000
-
- 6,000
5,000
64,850
-
- 64,850
83,120
9,837
-
- 9,837
11,011
1,419
1,419
2,782
14,505
-
- 14,505
27,781
-
2,536
- 2,536
8,229
4,394
4,394
3,416
938
-
- 938
2,939
25,595
-
- 25,595
-
316,861
289,051
- 605,912
606,060
5,555
(56,921)
(51,366)
142,055
(34,252)
387,676
353,424
211,369
(28,697) 330,755 302,058 353,424
The accompanying notes are an integral part of these financial statements.
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUND
NINE MONTHS ENDED DECEMBER 21. 2001
TRANSFERS -
FUND BALANCE
AT END OF YEAR (134,545) (28,697) 105,848
The accompanying notes are an integral part of these financial statements.
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GENERALFUND
VARIANCE -
FAVORABLE
BUDGET
ACTUAL
(UNFAVORABLE)
REVENUES
Property Taxes
37,700
36,298
(1,402)
Water Service
142,650
191,634
48,984
Sewer Service
63,000
88,939
25,939
Penalty and Interest
450
579
129
Standby & Tap Connection Fees
33,000
4,200
(28,800)
Interest on Time Deposits
4,500
766
(3,734)
Total Revenues
281,300
322,416
41,116
EXPENDITURES
Purchase Water
162,000
99,936
62,064
Water Maintenance and Repair
9,000
11,156
(2,156)
Capital Outlay
20,750
25,595
(4,845)
Electric Utilities
-
9,837
(9,837)
Sewer Treatment
117,000
82,257
34,743
Director Fees
4,500
6,000
(1,500)
Legal Fees
-
330
(330)
Audit Fees
6,800
6,800
-
Bookkeeping Fees
3,150
3,500
(350)
Administration
10,800
12,000
(1,200)
Utility Operation
36,000
49,350
(13,350)
Legal Notices
225
303
(78)
Telephone
540
469
71
Insurance and Bonds
4,000
4,394
(394)
Printing and Office Supplies
1,650
1,419
231
Repairs
4,500
3,349
1,151
Miscellaneous
678
166
512
Total Expenditures
381,593
316,861
64,732
Excess of Revenues Over
(Under) Expenditures
(100,293)
5,555
105,848
FUND BALANCE AT
BEGINNING OF YEAR
(34,252)
(34,252)
-
TRANSFERS -
FUND BALANCE
AT END OF YEAR (134,545) (28,697) 105,848
The accompanying notes are an integral part of these financial statements.
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' GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
' December 31, 2001
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
' A. Reporting Entity
All significant activities and groups on which the GUADCO Municipal Utility District No.1
(District) exercises oversight responsibility have been included in the general purpose
' financial statements, for the fiscal year ended. The District is located in Guadalupe and
Corral counties in Texas. The following criteria regarding manifestation of oversight were
considered by the District in its evaluation of District organizations and activities:
' Financial Interdependency - The District is responsible for its debts and entitled
to surpluses. No separate agency receives a financial benefit nor imposes a
' financial burden on the District.
Election of the Governing Authority - The locally elected Board of Directors is
exclusively responsible for all decisions and accountable for the decisions it
makes.
Designation of Management - The Board of Directors hires the management
company. The activities under the purview of management are within the scope
of the reporting entity and management is accountable to the Board of Directors
' for the activities being managed.
Abilify to Significantly Influence Operations - The Board of Directors has the
' statutory authority under provision of state law, and specifically the Texas Water
Code, to significantly influence operations. This authority includes, but is not
limited to, adoption of the budget, control over assets, including facilities and
properties, short -term borrowings, signing contracts, and developing programs
' to be provided by the District.
Accountability of Fiscal Matters - The responsibility and accountability over all
' funds is vested in the Districts management.
Purchase and sales of water are provided through an interconnect shared by Guadco
' Municipal Utility District No.1 and another district, Guadco Municipal Utility District No. 2.
There is no oversight relationship among any of the previously described entities, as
each is controlled and directed by its own independently elected governing body.
' B. Description of Funds
The District has established several funds, in conformance with generally accepted
' accounting principles, for the purpose of accounting for transactions in compliance with
legal requirements. Funds and account groups in use by the District in accounting for
its financial activities are as follows:
' Governmental Funds
' General Fund - To account for all of the general water and sewer revenue of the District
and other revenues not specifically levied or collected for other District funds, and for
expenditures related to the maintenance of operations.
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
' December 31, 2001
NOTE 1, SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
' B. Description of Funds (Continued)
Governmental Funds
Debt Service Funds - To account for the source and disposition of funds for paying interest
and principal on general long -term debt and fiscal agents expenses.
Capital Project Funds - To account for the acquisition of capital facilities being financed
from bond proceeds.
Account Group
' General Fixed Assets Account - To account for property, plant and equipment of the District.
General Long -Term Debt Accounts - To account for the unmatured principal of outstanding
' bonds.
C. Basis of Accounting
The District maintains its accounting records on the modified accrual basis. The modified
accrual basis recognized revenues that are suspectable to accrual when measurable and
available, and recognizes expenditures when incurred including expenses that normally
' qualify as prepaid expenses. Measurable means the amount of the transaction can be
determined, and available means collectible within the current period or soon enough
thereafter to be used to pay liabilities of the current period. Property taxes remaining
' uncollected at year end are reported as deferred revenues, since they are not considered
to be available.
D. Cash
' Cash includes amounts in demand deposits, and interest - bearing deposits held by the District.
Cash in excess of current requirements is invested in various interest - bearing instruments
and is disclosed as part of investments. These deposits and investments were authorized by
' legal provisions.
E. Investments
' All investments during the fiscal year consisted of short -term U.S. Treasury Bills held in the
District's name and carried at cost. It is the policy and practice of the District to hold all
Treasury bills to maturity.
F. Receivables
All receivables are reported at gross values. There is no estimate for uncollectible amounts
' in the customer water, sewer, and stand -by fee accounts as the deposits have proven to be
adequate to cover liabilities except in non - material amounts.
' G. Interest Receivable
Interest on investments is recorded as revenue in the year the interest is earned and is
available to pay liabilities of the current period.
1 GUADCO MUNICIPAL DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
1 December 31, 2001
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
1 H. Propedy. Plant and Equipment
Property, plant, and equipment, including infrastructure assets, are recorded at cost when
1 acquired. General fixed assets are recorded as expenditures in the general fund and
capital projects fund at the time of purchase and are capitalized in the General Fixed
Asset Account Group. No depreciation is provided for on the general fixed assets of the
1 District.
Costs related to repairs and maintenance are recorded as expenditures. Significant
1 renovations and improvements are capitalized when incurred. Interest costs are not
capitalized on projects financed by government grants, third -party donations, or on assets
that will be reported in the General Fixed Assets Account Group.
1 I. Employee Salaries. Taxes and Pension Plans
The District has engaged a municipality to oversee the monthly operations in a manner
1 dictated by the Board of Directors. Thus, the District has no employees and is not required
to pay salaries, payroll taxes, or amounts to pension plans.
1 J udgets
The District follows these procedures in establishing the budgetary data reflected in the
financial statements:
1 1. Formal budgetary integration is employed as a management control service
during the year for the general fund and is presented to directors monthly
in the internal accounting information.
1 2. The manager prepares the budget for Board review usually at the December
meeting. The budget is discussed, any changes are made, and the final
1 budget is presented at the March meeting.
3. The Board approved total budget appropriations.
1 4. Any unused appropriations in the budget lapse at the end of the fiscal year.
1 K. Comparative Data
Comparative totals for the prior year have been presented in the accompanying financial
statements in order to provide an understanding of changes in the Districts financial position
1 and operations. However, comparative data by fund type has not been presented in each
of the statements since their inclusion would make the statements unduly complex and
difficult to read.
1 L. Total Columns on Combined Statements
Total columns on the combined statements are captioned Memorandum Only to indicate
1 that they are presented only to facilitate financial analysis. Data in these columns does
not present financial position, results of operations, or changes in financial position in
conformity with generally accepted accounting principles. Neither is such data comparable
' to a consolidation. Interfund eliminations have not been made in the aggregation of this data.
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
M. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles require management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosures of contingent assets and
liabilities at the date of financial statements and the reported amounts of revenue and
expenses during the reporting period. Actual results could differ from those estimates.
NOTE 2: STEWARDSHIP. COMPLIANCE, AND ACCOUNTABILITY
A. Compliance with Bond Covenants
The annual debt service requirements at December 31, 2001, of all bonds is $11,515, and the
balance of the interest and sinking fund and all investment at December 31, 2001, is $303,926.
The District met or exceeded the funding requirements of all bonds issues on a timely basis.
Expenditures and resources of the interest and sinking fund were all of an authorized
nature.
B. Deposits with Financial Institutions
All investments, demand deposits, and savings of the District were sufficiently covered
through either FDIC insurance amounts, collateralized deposits in the District's name, held
by other banks, or by nature of the investment (purchase of U.S. Treasury Bills.) Throughout
the fiscal year, the District's only investments were in the form of U.S. Treasury Bills.
The District records all interest revenue related to the investment activities in the respective
fund in which they were earned.
Deposits
At December 31, 2001, the bank balance of the District's deposits was $358,488.
This entire amount was covered by $100,000 federal depository insurance and
collateral deposits held in the District's name.
The collateral for the District's deposits is categorized to give an indication of the
level risk assumed by the District at year end. Category 1 includes deposits that
are insured, registered or for which the securities are held by the District or its
agent in the District's name. Category 2 includes uninsured and unregistered
deposits for which the securities are held by the counter party's trust department
or agent, but not in the District's name. Category 3 includes uninsured and unregistered
deposits for which the securities are held by department or agent, but
not in the District's name. All deposits are Category 1.
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
NOTE 2: STEWARDSHIP. COMPLIANCE. AND ACCOUNTABILITY (CONTINUED
The District is allowed to invest in (1) obligations of the United States or its agencies and
instrumentalities; (2) direct obligations of the State of Texas or its agencies; (3) other
obligations, the principal of and interest on which are unconditionally guaranteed or
insured by the State of Texas or the United States,; (4) obligations of states, agencies,
counties, cities, and other political subdivisions of any state having been rated as to
investment quality by a nationally recognized investment rating firm and having received a
rating of not less than AA or its equivalent; (5) certificates of deposits issued by state
and national banks domiciled in Texas that are guaranteed or insured by the Federal
Deposit Insurance Corporation or its successor, or secured by obligations mentioned
above; and (6) fully collateralized direct repurchase agreements having a defined termination
date.
For fiscal year 2001, the District invested only in the U. S. Treasury bills and notes. The
District records all interest revenue related to investment activities in the respective funds
in which they are earned.
The District's investments are categorized to give an indication of level of risk
assumed by the District at year end. Category 1 includes investments that are
insured or registered or for which the securities are held by the District or its agent
in the District's name. Category 2 includes uninsured and unregistered investments
for which the securities are held by the counter party's trust department or agent
in the District's name. Category 3 includes uninsured and unregistered investments
for which the securities are held by the counter party's trust department or agent,
but not in the District's name.
Investments are stated at cost, and all investment activities are conducted through
the depository. During the nine months ended December 31, 2001, the District did not
invest through any security brokers or dealers. Treasury bills are bought and held
at the depository bank in safekeeping.
NOTE 3: CREATION OF DISTRICT
Guadco Municipal Utility District No. 1 was created by an order of the Texas Water Rights
Commission on October 28, 1975, and confirmed by the electorate of Guadco Municipal
Utility District No. 1 at a confirmation election held on December 17, 1975, The District is
operating pursuant to the provisions of Chapter 54, Texas Water Code, as amended. The
Board of Directors, consisting of five elected property owners, held its first meeting on
December 22, 1975, and the first bonds were sold March 1, 1977.
'
RANGE OF
GENERAL
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
INTEREST
NOTES TO FINANCIAL STATEMENTS
'
MATURITY
December 31, 2001
DEBT MATURITIES MATURITIES
NOTE 4: INT RF ND RECEIVABLES
AND PAYABLES
The following is a summary
of amounts due from and due to other funds at year end:
DUE FROM DUE TO
Unlimited Tax and
General Fund
'
Debt Service Fund
9,542
Capital Projects Fund
-
2002
Capital Projects Fund
215,000 215,000
General Fund
Debt Service Fund
' General Fund - 9,542
TOTAL ALL FUNDS 9,542 9,542
NOTE 5: GENERAL LONG -TERM DEBT
The following is a summary of changes in general long -term debt:
' TAX AND REVENUE BONDS
SERIES 1999
Bonds Payable
at April 1, 2001 490,000
Less Bonds Retired 275,000
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BONDS PAYABLE AT
December 31, 2001 215,000
At December 31, 2001, the Districts long -term debt consisted of:
A schedule of bond maturities for the next five (5) years is as follows
ENDING Mar
2002
2003
Total
Principal
Interest
Total
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TAX AND REVENUE
BONDS SERIES 1999
$ 11,515
225,105
$ 236,620
$ 215,000
21,620
$ 236,620
RANGE OF
GENERAL
INTEREST
LONG -TERM CURRENT LONG -TERM
MATURITY
RATES
DEBT MATURITIES MATURITIES
Water Works and Sewer
System Combination
Unlimited Tax and
Serially
Revenue Refunding
through
Bonds Series 1999
2002
4.70%
215,000 215,000
A schedule of bond maturities for the next five (5) years is as follows
ENDING Mar
2002
2003
Total
Principal
Interest
Total
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TAX AND REVENUE
BONDS SERIES 1999
$ 11,515
225,105
$ 236,620
$ 215,000
21,620
$ 236,620
' GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
' December 31, 2001
' NOTE 5: GENERAL LONG -TERM DEBT (CONTINUED)
Tax and revenue bonds authorized and unissued as of December 31, 2001 amounted to $1,280,000.
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 the pledge of the net revenues to be received from the operation of the
' District's waterworks and sanitary sewer system.
During June 1999 the Series 1999 Revenue Bonds were approved and sold in the aggregate
' amount of $750,000 to refund the Series 1977 and 1978 Revenue Bonds. The District
refunded the bonds to reduce its total debt service payments over future years by $100,000.
' NOTE 6: WATER AND SEWER SERVICE RATES
The Guadco Municipal Utility District No. 1 has established the following water and sewer service
rates for residential or multi- family customers:
'
FOR FISCAL
YEAR 2000 -2001
Water Service Only, 5/8" Line
First 3,000 Gallons of Water Used -
Minimum Bill
21.58
Each 1,000 Gallons of Water Used from 3,001 to 18,000
1.85
Each 1,000 Gallons of Water Used from 18,001 to 30,000
2.93
Each 1,000 Gallons of Water Used from 30,001 to 45,000
4.01
Each 1,000 Gallons of Water Used from 45,001 to 60,000
5.21
'
Each 1,000 Gallons of Water Used from 60,001
0.32
Sewer Service Only
'
First 5,OD0 Gallons of Water Used -
Minimum Bill
13.85
Each 1,000 Gallons of Water Used Thereafter
0.55
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Deposits
Refundable Deposits - Owner
75.00
Refundable Deposits - Renter
150.00
Tap Fees
Standard Home
2,000.00
There was 709 metered water and sewer customers at December 31,
2001.
'
The rates above have not been sufficient to fund operating costs. At a regular meeting held
on August 21, 2001, a maintenance tax of $.06 per $100 valuation was approved to help
defray part of the cost of operations. This levy provided the District $36,298 during the
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fiscal year.
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GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
December 31, 2001
NOTE 7: CHANGES IN GENERAL FIXED ASSETS
A summary of changes in general fixed assets follows:
Land
Water System
Sewage System
Drainage System
Engineering Fees
Organizational Costs
TOTAL
BALANCE
NET BALANCE
APRIL 1,
ADDITIONS December3l,
2001
(DELETIONS) 2001
31,176
- 31,176
1,171,861
- 1,171,861
1,083,416
- 1,083,416
541,945
- 541,945
301,433
301,433
653,503 653,503
3,783,334 3,783,334
The District, in conformance with requirements of the Texas Natural Resource Conservation
Commission, capitalized and charged to organization cost for the creation period all costs
incurred in the creation of the District allowed by statue. The Texas Natural Resource
Conservation Commission also requires capitalization as organizational costs for the
construction period all costs incurred in the issued 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.
Investment interest earnings and gains on sales of investments were capitalized as a
reduction to organizational costs for the construction period.
NOTE 8: PROPERTY TAXES
Property taxes attach as an enforceable lien on property as of January 1, are due October 1 and
become delinquent on February 1. Property taxes for the District are not limited as to rate
or amount. The Districts current tax rate is $.43 per $100 of assessed valuation and
assessed valuation is approximately 100% of actual values. Of the $.43 per $100 of
assessed valuation, $.37 is designated for debt service and $.06 is designated for
maintenance.
' NOTE 9: FUND EQUITY RESERVES AND TRANSFERS FROM CAPITAL PRO TS FUND
The District records one (1) general type of reserve. The one (1) type is used to indicate that
a portion of the fund equity is legally restricted for a specific future use.
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Following is a list of all reserves used by the District and a description of each:
Reserved for Debt Service
An account used to indicate that certain assets are legally restricted by the bond
indenture to be used for specific purposes.
Reserved for Capital Projects
An account used to indicate that certain assets are generally legally restricted to
be used for specific purposes.
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' GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
NOTES TO FINANCIAL STATEMENTS
' December 31, 2001
NOTE 10: EXCESS OF EXPENDITURES OVER REVENUES
' During the current fiscal year the debt service fund incurred expenditures in excess of revenues
earned. This excess is expected to continue for the next few years until either property values
increase or a tax rate increase is approved.
NOTE 11: COMMITMENTS AND CONTINGENCIES
The District purchases its water supply form the City of Schertz under a contract dated May 25,
' 1975. The contract is for a term of 30 years, at which time it is renewable for a maximum of
15 years.
' NOTE 12: ANNEXATION BY CITY OF SCHERTZ
Effective January 1, 2002 the City of Schertz annexed the District and assumed all of the
assets and liabilities of the District.
h
h
I
h
U
13
F
I
1
1
LJ
0
I_ J
0
1
I
GUADCO MUNICIPAL DISTRICT NO.1
SUPPLEMENT SCHEDULES INCLUDED WITHIN THIS REPORT
' NINE MONTHS ENDED DECEMBER 31, 2001
PAGE
NUMBER
14
5
15
17
18
19
21
22
23
24
25
26
YES
NO
'
X
C. INDEPENDENT AUDITOR'S REPORT ON
SUPPLEMENTAL SCHEDULES
'
X
D. NOTES REQUIRED BY THE WATER DISTRICT
ACCOUNTING MANUAL -ALL NOTES REQUIRED
BY THE WATER DISTRICT ACCOUNTING MANUAL
'
HAVE BEEN FULLY DISCLOSED IN THE GENERAL
PURPOSE FINANCIAL STATEMENTS
'
X
E. SERVICES AND RATES
X
F. SCHEDULE OF GENERAL FUND EXPENDITURES
X
G. SCHEDULE OF TEMPORARY INVESTMENTS
X
H. ANALYSIS OF TAXES LEVIED AND RECEIVABLE
X
I. ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
'
X
J. GENERAL LONG -TERM DEBT SERVICE
REQUIREMENTS BY YEARS
X
K. ANALYSIS OF CHANGES IN GENERAL LONG -TERM
DEBT
'
X
L. COMPARATIVE STATEMENT OF REVENUES AND
EXPENDITURES, GENERAL FUND, AND DEBT
SERVICE FUND - FOUR YEARS AND NINE MONTHS
ENDED DECEMBER 31, 2001
'
X
M. INSURANCE COVERAGE
X
N. BOARD MEMBERS, KEY ADMINISTRATIVE
'
PERSONNEL, AND CONSULTANTS
PAGE
NUMBER
14
5
15
17
18
19
21
22
23
24
25
26
I
1
Itp, g0jrjor
CERTIFIED PUBLIC ACCOUNTANT
INDEPENDENT AUDITOR'S REPORT ON SUPPLEMENTAL SCHEDULES
' City of Schertz
GUADCO Municipal Utility District No. 1
Guadalupe and Coma] Counties, Texas
In my opinion, the accompanying information is stated fairly in all material respects in relation
' to the general purpose financial statements, taken as a whole, of GUADCO Municipal Utility
District No. 1 for the nine months ended December 31, 2001, which are covered by my opinion
presented in the first section of this report. The accompanying information is supplemental
to the general purpose financial statements and is not essential for a fair presentation of the
' financial position, and the results of operations.
My examination, which was made primarily for the purpose of forming an opinion of the combined
' financial statements taken as a whole, included such tests of accounting records, from which
the supplementary information was complied, and such other auditing procedures as I considered
necessary in the circumstances.
' The information prior to April 1, 1998 was audited by other auditor's whose unqualified audit
reports were issued at various dates prior to April 1, 1998.
' p ne 6, 2002
H
14
352 Landa St • New Braunfels, TX 78130
' 830- 625 -6073 830 - 625 -8225 FAX
e -mail: JimrCihe- cia.net
Member of American Institute of Certified Public Accountants
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
E. SERVICES AND RATES
NINE MONTHS ENDED DECEMBER 31, 2001
1. Services Provided by the District:
X Retail Water Wholesale Water Drainage
X Retail Wastewater Wholesale Wastewater Irrigation
Parks /Recreation Fire Protection Security
Solid Waster /Garbage Flood Control Roads
Participates in joint venture, regional system, and /or wastewater service
(other than emergency interconnect)
Other (specify) :
2. Retail Rates Based on 518 Meter
NIA Retail Rates Not Applicable
Most prevalent type of meter (if not a 518) : NIA
FLAT
RATE PER 1,000
MINIMUM MINIMUM RATE
GALLONS OVER
CHARGE USAGE Y/N
MINIMUM
USAGE LEVELS
WATER $ 21.58 3,000 N
$1.85
3,001 To 18,000
WASTEWATER $ 13.85 5,000 N
$0.55
5,001 To Thereafter
SURCHARGE: $ - -
District employs winter averaging for wastewater usage ?
Yes No X
Total water and wastewater charges per 10,000 gallons usage
(including surcharges)
52.93
3. Retail Service Providers: Number of retail water and /or wastewater* connections within the District
as of fiscal year end. Provide actual numbers and single family equivalents (ESFC) as noted:
INACTIVE
ACTIVE ACTIVE CONNECTIONS
CONNECTIONS ESFC (ESFC) **
Single Family 690 18
Multi - Family - -
Commercial 12 - 1
Other - Recreational Centers,
Government, and VFD 7 -
TOTALS 709 - 19
* Number of connections relates to water service, if provided. Otherwise, number of wastewater
connections should be provided.
" Inactive means that water and wastewater connections were made, but service is not being provided.
4. Total Water Consumption (In Thousands) During The Fiscal Year:
Gallons pumped into system: 51,070,200
Gallons billed to customers: 43,211,000
The accompanying notes are an integral part of these financial statements.
15
' GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
E. SERVICES AND RATES (CONTINUED)
NINE MONTHS ENDED DECEMBER 31, 2001
5. Standby Fees: Does the District assess standby fees? Yes No
If Yes, Specify Amount and Basis of the Assessment.
1 $ Per Lot
(Check One) _
Percent Allocated to:
Per Year
$ Per Acre
General Fund _%
Per Quarter
X
Other or Non- Uniform Rates
Per Month
Debt Service Fund _%
' Have Standby Fees Been Approved by the Texas Water Commission? _ Yes —No
Have standby fees been levied in accordance with Water Code Section 50.056, thereby constituting
' a lien on property? Yes _ No
6. Anticipated sources of funds to be used for debt service payments in the District's following fiscal
' year: Amount
a. Debt Service Tax Receipts 11,515
b. Surplus Construction Funds -
' c. Water and /or Wastewater Revenue -
d. Standby Fees
e. Debt Service Fund Balance to be Used -
' f. Interest Revenues -
g. Surplus Funds
TOTAL ANTICIPATED FUNDS TO BE USED * 11,515
' * This total should equal the District's annual debt service for the fiscal year following the fiscal year
reported or in the audited financial statements.
' 7. Location of District:
Counties in which district is located. Guadalupe and Coma] Counties.
' Is the District located entirely within one county? Yes No X
Is the District located within a city? Entirely Partly Not at all X
City (ies) in which district is located.
Is the District located within a city's extra territorial jurisdiction (ETJ)?
Entirely Partly X Not at all
' ETJ's in which district is located. SchedZ Texas
Is the general membership of the Board appointed by an office outside the district?
Yes No X
If Yes, by whom?
The accompanying notes are an integral part of these financial statements.
16
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
F. SCHEDULE OF GENERAL FUND EXPENDITURES
NINE MONTHS ENDED DECEMBER 31, 2001
CURRENT
Personnel (Including Benefits)
PROFESSIONAL FEE$
Auditing
Legal
Engineering
PURCHASED SERVICES FOR RESALE
Bulk Water and Sewer Service
CONTRACTED SERVICES
Bookkeeping
Utility Operator
Administrator
UTILITIES
ADMINISTRATIVE EXPENDITURES
Directors Fees
Office Supplies and Printing
Insurance
Other Administrative Expense
Telephone
CAPITAL OUTLAY
Acquisition of Fixed Assets
SOLID WASTE DISPOSAL (Sewer Only Not Garbage)
FIRE FIGHTING
PARKS AND RECREATION
OTHER EXPENDITURES
TOTAL EXPENDITURES
Number of persons employed by the District:
(Do not include independent contractors or consultants)
All Services in District Provided by Contractors or City of Schertz, Texas.
The accompanying notes are an integral part of these financial statements.
17
6,800
330
182,193
3,500
49,350
12,000
9,837
14,505
6,000
1,419
4,394
469
469
25,595
316,861
- Full -time
- Part-time
i
1
i
1
i
1
1
1
1
1
i
1
1
1
i
1
FUNDS
DEBT SERVICE FUND
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
G. SCHEDULE OF TEMPORARY INVESTMENTS
NINE MONTHS ENDED DECEMBER 31, 2001
ACCOUNT INTEREST
NUMBER RATE
COST
BALANCES AT
END OF YEAR
NONE
NONE
MARKET
BALANCES AT
END OF YEAR
The accompanying notes are an integral part of these financial statements.
18
MATURITY
DATE
RECEIVABLE
AT END
OF YEAR
'
Nine Months
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
Ended 12/31/01
2001
H. ANALYSIS OF TAXES LEVIED AND RECEIVABLE
1999
TAX RATES PER $100 VALUATION
NINE MONTHS ENDED DECEMBER 31, 2001
Debt Service
DEBT
'
MAINTENANCE
Tax Rates
SERVICE
0.0564
0.5068
TAXES
TAXES
0.06
Taxes Receivable at April 1, 2001
1,974
0.08
16,426
'
2001 Original Tax Levy
36,097
222,665
Adjustments to Roll
924
0.5675
1,125
0.5906
Total to be Accounted for
38,995
258,762
240,216
'
333,549
'
Tax Collections:
Percent of Taxes Collected to
Current Year
34,912
215,356
Taxes Levied "
Prior Years
1,386
99.68%
7,129
Total Collections
36,298
222,485
'
TAXES RECEIVABLE AT DECEMBER 31, 2001
2,697
are reduced by disabled
17,731
Taxes Receivable, By Years 2001
1997
53
The accompanying notes are an integral part of these financial statements.
301
'
1998
126
804
1999
110
922
2000
2001
300
2,108
2,699
13,005
TAXES RECEIVABLE AT DECEMBER 31, 2001
2,697
17,731
'
Nine Months
Ended 12/31/01 2001
2000
1999
'
PROPERTY VALUATIONS
Land 7,833,465 8,148,639
8,088,868
7,704,955
Improvements 51,909,257 49,147,511
49,255,777
47,926,766
Personal Property 1,010,933 843,219
1,000,900
844,571
TOTAL PROPERTY
VALUATIONS 60,753,655 58,139,369
58,345,545
56,476,292
'
Nine Months
Ended 12/31/01
2001
2000
1999
TAX RATES PER $100 VALUATION
Debt Service
Tax Rates
0.37
0.0564
0.5068
0.5106
Maintenance Tax Rates
0.06
0.5111
0.0607
0.08
TOTAL TAX RATE PER
$100 VALUATION
0.43
0.5675
0.5675
0.5906
TAX ROLLS
258,762
331,473
331,111
333,549
'
Percent of Taxes Collected to
Taxes Levied "
96.72%
99.10%
99.68%
99.72%
In 2001 total property valuations
are reduced by disabled
veteran exemption (576,500).
'
The accompanying notes are an integral part of these financial statements.
19
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
H. ANALYSIS OF TAXES LEVIED AND RECEIVABLE (CONTINUED)
' NINE MONTHS ENDED DECEMBER 31, 2001
Tax rate for any other special district which encompasses less than a county, (b) provides water,
wastewater collection, drainage or roads to property in the District and (c) taxes property In the
District.
Name of Special
District (s) Service Provide Tax Rate
' NIA N/A $
' Total Rate (s) of Special District (s)
' Tax rates for all overlapping jurisdiction Tax Rate
a. County Guadalupe $ 0.3499
b. City City of Schertz 0.3825
' c. School District Schertz I.S.D. 0.7100
d. Special District (s) not included above:
' e. Total Special District (s) (from top of this page) -
f. Total District (from previous page) 0.4300
' Total Overlapping Tax Rate (Sum of a -f) 2.8724
' The accompanying notes are an integral part of these financial statements.
20
I
L1
GUADCO MUNICIPAL UTILITY DISTRICT NO.1
I. ANALYSIS OF CHANGES IN GENERAL FIXED ASSETS
NINE MONTHS ENDED DECEMBER 31, 2001
PHYSICAL FACILITIES:
Land
Water System
Sewage System
Drainage System
Engineering Fees
Capitalized Construction
Period Costs
' TOTALS
d
1
0
Additions Provided by
Operations
Construction Fund
Contribution from Developer
TOTALS
BALANCES BALANCES
April 1, 2001 ADDITIONS DELETIONS December 31, 2001
31,176
- 31,176
1,171,861
1,171,861
1,083,416
1,083,416
541,945
541,945
301,433
301,433
653,503
653,503
3,783,334 3,783,334
329,254
- 329,254
2,474,318
2,474,318
979,762
979,762
3,783,334 3,783,334
The accompanying notes are an integral part of these financial statements.
21
t
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
J. GENERAL LONG -TERM DEBT SERVICE REQUIREMENTS - BY YEARS
NINE MONTHS ENDED DECEMBER 31. 2001
DUE DURING
SERIES 1999
FISCAL YEARS
PRINCIPAL
INTEREST
ENDING
DUE
DUE
MARCH 31,
Sep -01
Mar -01, Sep -01
TOTAL
2002
-
11,515
11,515
2003
215,000
10,105
225,105
TOTALS
215,000
21,620
236,620
The accompanying notes are an integral part of these financial statements.
22
1
' GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
K. ANALYSIS OF CHANGES IN GENERAL LONG -TERM DEBT
NINE MONTHS ENDED DECEMBER 31, 2001
BONDISSUE -
SERIES
'
1999
Interest Rate
4.70%
'
Dates Interest Payable
3 -1 ; 9 -1
Maturity Dates
9 /1 100 to
'
9/1102
Maturity Outstanding at Beginning
'
of Current Period
490,000
Retirements - Principal
275,000
'
Bonds Outstanding at End of
Current Period
210,000
'
Retirements - Interest
11,515
PAYING AGENTS NAME AND ADDRESS
Series 1999
The Bank of New York, New York, New York Jacksonville, Florida
'
BOND AUTHORITY
TAX BONDS OTHER BONS REFUNDING BOND
Amount Authorized by Voters
4,650,000
'
Amount Issued
3,370,000
Remaining to be Issued
1,280,000
The accompanying notes are an integral part of these financial statements.
'
23
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
L. COMPARATIVE STATEMENT OF REVENUES AND EXPENDITURES
GENERAL FUND AND DEBT SERVICE FUND
FOUR YEARS AND NINE MONTHS ENDED DECEMBER 31, 2001
GENERAL FUND REVENUES
Property Taxes
Water Services
Sewer Services
Penalty and Interest
Tap Connection Fees
Interest on Time Deposits
Total Revenues
EXPENDITURES
Purchase Water and Sewer Services
Professional Fees
Contracted Services
Utilities
Materials and Supplies
Repairs and Maintenance
Insurance
Other Expenditures
Capital Outlay
Total Expenditures
EXCESS REVENUES
AMOUNTS
Nine Months
Ended 12/31101 2001 2000 1999 1998
36,298
34,348
37,245
43,814
46,886
191,634
249,825
233,050
235,783
211,819
88,939
119,608
123,202
119,857
135,238
579
15,375
6,396
10,747
9,769
4,200
4,210
6,400
1,275
3,890
766
1,387
6,068
9,929
9,834
322,416
424,753
412,361
421,405
417,436
Tax Collection Services
2,536
8,229
5,995
182,193
155,759
221,286
198,209
176,174
7,130
6,883
7,980
9,147
19,393
64,850
83,120
61,394
87,221
83,501
9,837
11,011
10,814
12,570
10,784
1,419
2,782
1,902
5,162
5,886
14,505
27,781
70,398
28,286
89,976
4,394
3,416
3,365
3,878
4,019
6,938
7,939
6,678
30,125
11,346
25,595
-
-
316,861
308,691
383,817
374,598
401,079
5,555
116,062
28,544
46,807
16,357
DEBT SERVICE FUND REVENUES
Property Taxes
222,485
305,595
301,968
292,146
266,699
Penalty and Interest
2,564
6,567
11,159
6,637
10,348
Interest on Time Deposits
7,081
11,200
5,404
13,263
15,801
Total Revenues
232,130
323,362
318,531
312,046
292,848
EXPENDITURES
Tax Collection Services
2,536
8,229
5,995
8,750
22,643
Debt Service, Interest, and Fees
286,515
289,140
516,297
593,752
285,097
Total Expenditures
289,051
297,369
522,292
602,502
307,740
EXCESS REVENUES
(EXPENDITURES)
(56,921)
25,993
(203,761)
(290,456)
(14,892)
TOTAL ACTIVE RETAIL WATER AND/
OR WASTEWATER CONNECTIONS 709 709 709 692 691
The accompanying notes are an integral part of these financial statements.
24
1
1
1
PERCENT OF FUND TOTAL REVENUE
Nine Months
39.0
53.7
47.0
42.2
Ended 12/31/01
2001
2000
1999
1998
11.3%
8.1%
9.0%
10.4%
11.2%
59.4
58.9
56.4
56.0
50.8
27.6
28.1
29.9
28.4
32.4
0.2
3.6
1.6
2.6
2.3
1.3
1.0
1.6
0.3
0.9
0.2
0.3
1.5
2.3
2.4
1D0.0
100.0
100.0
100.0
100.0
56.5
39.0
53.7
47.0
42.2
2.2
1.6
1.9
2.2
6.1
20.1
19.6
14.9
20.7
20.0
3.1
2.6
2.6
3.0
2.5
0.4
0.7
0.5
1.2
1.4
4.5
6.5
17.1
6.7
21.6
1.4
0.8
0.8
0.9
1.0
2.2
1.9
1.6
7.2
1.3
7.9
0.0
0.0
0.0
0.0
98.3
72.7
93.1
88.9
96.1
1.7
27.3
6.9
11.1
3.9
95.8
94.5
94.8
93.6
91.1
1.1
2.0
3.5
2.1
3.6
3.1
3.5
1.7
4.3
5.3
100.0
100.0
100.0
100.0
100.0
1.1
2.5
1.9
2.8
7.7
123.4
89.4
162.1
190.3
97.4
124.5
91.9
164.0
1931 .
105.1
(24.5)
8.1
(64.0)
(93.1)
(5.1)
24
' GUADCO MUNICIPAL UTILITY DISTRICT NO, 1
M. INSURANCE CONVERGE
NINE MONTHS ENDED DECEMBER
31, 2001
INSURER
TYPE OF
POLICY
'
AMOUNT
CORPORATION
CLAUSE
TYPE OF COVERAGE
OF COVERAGE
NAME
STOCKIMUTUAL
CO- INSURANCE
Fire and Lightning
'
Building
89,250
Ohio Casualty
Stock
No
Fence
7,350
Insurance Co.
Tank 3550 Morning Dr.
105,000
'
Tank 9800 Morning Dr.
251,475
Fence
5,845
'
Liability
Automotive-
Ohio Casualty
Stock
No
Property Damage
Bodily Injury
500,000
500,000
Insurance Co.
Comprehensive
'
General
1,000,000
Ohio Casualty
Stock
No
Products Completed
1,000,000
Insurance Co.
Personal Injury
500,000
'
Fire
100,000
Medical
5,000
'
Umbrella
2,000,000
Ohio Casualty
Stock
No
Insurance Co.
Public Officials Bond -
Directors
10,000
Ohio Casualty
Stock
No
'
Insurance Co.
1
'
The accompanying notes are
an integral part of these
financial statements.
'
25
GUADCO MUNICIPAL UTILITY DISTRICT NO. 1
N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL, AND CONSULTANTS
NINE MONTHS ENDED DECEMBER 31, 2001
Complete District Mailing Address:
District Business Telephone Number:
Post Office Box 310
Cibolo, Texas 78108
(830) 625 -4810
FEES
AND EXPENSE
REIMBURSEMENTS
December 31, 2001
TITLE AT
YEAR END
$1,400 President
$1,500 Vice President
$1,400 Secretary
$200 Treasurer
$1,500 Assistant
Secretary/
Treasurer
The accompanying notes are an integral part of these financial statements.
26
RESIDENT
OF
DISTRICT ?
Yes
Yes
Yes
Yes
Yes
TERM OF
OFFICE ELECTED
AND EXPIRES
NAME AND ADDRESS
OR DATE HIRED
BOARD MEMBERS
William Woeckner
5001 Crestwood
Cibolo, TX 78108
03 -00 to 03 -04
Robert Cary
3425 Winheldon
Cibolo, TX 78108
03 -00 to 03 -04
Stan Weeler
3700 Scenic Hills Dr.
Cibolo, TX 78108
03 -00 to 03 -04
Ruby Cooper
04 -00 to 03 -02
3604 Scenic Drive
Cibolo, TX 78108
Douglas Martin
07 -00 to 03 -02
3317 Sherwin Dr.
Cibolo, TX 78108
Post Office Box 310
Cibolo, Texas 78108
(830) 625 -4810
FEES
AND EXPENSE
REIMBURSEMENTS
December 31, 2001
TITLE AT
YEAR END
$1,400 President
$1,500 Vice President
$1,400 Secretary
$200 Treasurer
$1,500 Assistant
Secretary/
Treasurer
The accompanying notes are an integral part of these financial statements.
26
RESIDENT
OF
DISTRICT ?
Yes
Yes
Yes
Yes
Yes
1
GUADCO MUNICIPAL UTILITY DISTRICT NO.1
N. BOARD MEMBERS, KEY ADMINISTRATIVE PERSONNEL, AND CONSULTANTS
NINE MONTHS ENDED DECEMBER 31, 2001
The accompanying notes are an integral part of these financial statements.
27
TERM OF
FEES
OFFICE
ELECTED
AND EXPENSE
RESIDENT
AND EXPIRES
REIMBURSEMENTS
TITLE AT
OF
NAME AND ADDRESS OR DATE HIRED
December 31, 2001
YEAR END
DISTRICT?
CONSULTANTS
Bill Corsbie, P.C.
3708 Clawson Road
Austin, TX 78704
Aug -99
$330
Attorney
No
Bill Blitch
Samco Capital Markets
11111 Katy Freeway Ste 725
Financial
Houston, TX 77079
Feb -99
$0
Advisor
No
City of Schertz
Utility
10 Commercial Place
System
Schantz, TX 78154
Jun -98
$49,350
Operator
No
Jim Robertson, CPA
352 Landa St,
New Braunfels, TX 78130
Oct -98
$6,800
Auditor
No
Guadalupe County Appraisal
District
Central
P.O. Box 70
Appraisal
Seguin, TX 78155
Jan -98
$1,509
District
Guadalupe County Tax Office
Tax
307 W. Court
Assessor -
Seguin, TX 78156
Jan -98
$1,026
Collector
No
Edna Turner
3338 Fox Brier Ln.
Cibolo, TX 78108
Dec -98
$12,000
Administrator
Yes
Charles Allen, CPA
831 Landa Street
New Braunfels, TX 78130
Jun -99
$3,500
Bookkeeper
No
The accompanying notes are an integral part of these financial statements.
27