Woodlands JPA Audit 2014

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THE WOODLANDSJOINT POWERS AGENCY

FINANCIAL STATEMENTS

September 30, 2014


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C O N T E N T S

PageElected Officials 1

Independent Auditors Report 3-4

Management Discussion and Analysis 5-8

Basic Financial StatementsStatement of Net Position 10Statement of Revenues, Expenses and Changes in Net Position 11

Statement of Cash Flows 12Notes to Financial Statements 13-20

Other Supplementary InformationSchedule of Revenues and Expenses Budget and Actual 22Schedule of Operating Expenses Budget and Actual 23-24

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THE WOODLANDS JOINT POWERS AGENCY

ELECTED OFFICIALS

September 30, 2014

Board of Trustees

Eric Hird Montgomery County Municipal Utility District No. 39 President

Ron Wilson The Woodlands Metro Center MUD Vice President

Kyle Mays Montgomery County Municipal Utility District No. 7 Secretary

Paul Martin Montgomery County Municipal Utility District No. 67 AssistantSecretary

Robert Leilich The Woodlands Municipal Utility District No. 2 Trustee

Ron Kutsche Montgomery County Municipal Utility District No. 6 Trustee

Jan Price Montgomery County Municipal Utility District No. 36 Trustee

Hartley Mackintosh Montgomery County Municipal Utility District No. 40 Trustee

Mark Vonderau Montgomery County Municipal Utility District No. 46 Trustee

Rosemary Roe Montgomery County Municipal Utility District No. 47 Trustee

Albert Tomchesson Montgomery County Municipal Utility District No. 60 Trustee

Alternate TrusteesThe Woodlands Municipal Utility District No. 2 Tom Conroy

George JonesMontgomery County Municipal Utility District No. 6 Robert BerglundBruce Cunningham

Montgomery County Municipal Utility District No. 7 Bob HoffmeisterHenry Cheek

Montgomery County Municipal Utility District No. 36 Kent MaggertScott Haynes

Montgomery County Municipal Utility District No. 39 Erik BerglundRonnie Rogers

Montgomery County Municipal Utility District No. 40 Jennifer FerraraBill Bootz

Montgomery County Municipal Utility District No. 46 Felicia Poe

Jeanne UnderwoodMontgomery County Municipal Utility District No. 47 Arthur Bredehoft

Montgomery County Municipal Utility District No. 60 Lloyd MathewsRon Kostelny

Montgomery County Municipal Utility District No. 67 Larry CopelandRoland Johnson

The Woodlands Metro Center MUD Henry AllcottJohn Cozart


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(This Page Intentionally Left Blank)


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Independent Auditors Report

Board of TrusteesThe Woodlands Joint Powers AgencyThe Woodlands, Texas

We have audited the accompanying financial statements of the business-type activities and each major fundof The Woodlands Joint Powers Agency, as of and for the year ended September 30, 2014, and the relatednotes to the financial statements, which collectively comprise The Woodlands Joint Powers Agencys basic

financial statements as listed in the table of contents.

Managements Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation and maintenance of internal control relevant to the preparation and fair presentationof financial statements that are free from material misstatement, whether due to fraud or error.

Auditors Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted ouraudit in accordance with auditing standards generally accepted in the United States of America. Those

standards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditors judgment, including the assessmentof the risks of material misstatement of the financial statements, whether due to fraud or error. In makingthose risk assessments, the auditor considers internal control relevant to the entitys preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys internalcontrol. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of significant accounting estimates made by management,as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinions.

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the business-type activities and each major fund of The Woodlands JointPowers Agency, as of September 30, 2014, and the respective changes in financial position and cash flowsthereof for the year ended in accordance with accounting principles generally accepted in the United States of

America.


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Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the managementsdiscussion and analysis on pages 5-8 be presented to supplement the basic financial statements. Such

information, although not a part of the basic financial statements, is required by the GovernmentalAccounting Standards Board, who considers it to be an essential part of the financial reporting for placing thebasic financial statements in an appropriate operational, economic or historical context. We have appliedcertain limited procedures to the required supplementary information in accordance with auditing standardsgenerally accepted in the United States of America, which consisted of inquiries of management about themethods of preparing the information and comparing the information for consistency with managementsresponses to our inquiries, the basic financial statements and other knowledge we obtained during our auditof the basic financial statements. We do not express an opinion or provide any assurance on the informationbecause the limited procedures do not provide us with sufficient evidence to express an opinion or provideany assurance.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectivelycomprise The Woodlands Joint Powers Agencys basic financial statements. The other supplementaryinformation is presented for purposes of additional analysis and is not a required part of the basic financialstatements.

The other supplementary information is the responsibility of management and was derived from and relatedirectly to the underlying accounting and other records used to prepare the basic financial statements. Suchinformation has been subjected to the auditing procedures applied in the audit of the basic financialstatements and certain additional procedures, including comparing and reconciling such information directlyto the underlying accounting and other records used to prepare the basic financial statements themselves,and other additional procedures in accordance with auditing standards generally accepted in the UnitedStates of America. In our opinion, the other supplementary information is fairly stated, in all materialrespects, in relation to the basic financial statements as a whole.

Sugar Land, TexasJanuary 7, 2015


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MANAGEMENT DISCUSSION AND ANALYSIS

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The management of the Woodlands Joint Powers Agency (the Agency) offers readers of theAgencys financial statements this narrative overview and analysis of the financial activities ofthe Agency for the year ended September 30, 2014. We encourage readers to consider theinformation presented here in conjunction with the financial statements and the notes to thefinancial statements.

FINANCIAL HIGHLIGHTS

The Agencys total assets were $3,155,821; of this amount, $1,181,002 representscapital assets and $1,974,819 represents current assets.

Liabilities for the Agency totaled $181,277. The Agencys total assets exceeded liabilities by $2,974,544. This amount represents

Net Position; of this amount, $1,181,002 is investment in capital assets. The remaining$1,793,542 represents unrestricted Net Position.

Operating revenues for the Agency for the year were $5,406,247 and were more thanoperating expenses by $321,480.

OVERVIEW OF THE FINANCIAL STATEMENTS

The discussion and analysis is intended to serve as an introduction to the Agencys basicfinancial statements. The Agencys basic financial statements include three components: 1)business-type financial statements, 2) notes to the financial statements, and 3) requiredsupplemental information.

ENTERPRISE FUND

The Enterprise Fund is used to report the same functions presented as business-type activitiesin the basic financial statements.

NOTES TO THE FINANCIAL STATEMENTS

The notes provide additional information that is essential to a full understanding of the dataprovided in the financial statements.

STATEMENT OF NET POSITION

The Statement of Net Position for the Agency is presented as one of the required basic financialstatements. The Statement of Net Position includes all of the Agencys assets and liabilities. Amajor function of the Statement of Net Position is to measure the ability of the Agency to meetits current and long-term obligations.


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State and local governments report the net value or Net Position in these major categories:

Investment in Capital Assets

Restricted

Unrestricted

The Governmental Accounting Standards Board (GASB) believes the users of the Agencysfinancial statements should know whether Net Position were invested in capital assets, arerestricted for future use or their future use is unrestricted.

FINANCIAL ANALYSIS

Net Position may serve over time as a useful indicator of a financial statement position. In thecase of the Agency, assets exceeded liabilities by $2,974,544 at the close of the most recentfiscal year.

Current assets $ 1,974,819 $ 2,057,256Capital assets - net 1,181,002 1,174,315

$ 3,155,821 $ 3,231,571

Current liabilities $ 181,277 $ 267,540$ 181,277 $ 267,540

Investment in capital assets $ 1,181,002 $ 1,174,315

Unrestricted 1,793,542 1,789,716$ 2,974,544 $ 2,964,031

2014 2013Assets

Liabilities

Net Position

Total Net Position

Total Assets

Total Liabilities


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STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

The Statement of Revenues, Expenses and Changes in Net Position is the basic statement ofactivities. The Agency does not seek to earn a profit in the long term. However, the Agencymust cover its operations, maintenance and other costs annually from fees and charges sincethe Agency does not levy or collect any tax revenue. The Statement of Revenues, Expensesand Changes in Net Position measures how well annual costs are covered by fees and charges.

Operating Revenues:

Administration $ 2,469,803 $ 2,547,440

Tap and culvert fees 364,400 397,427

Reimbursements 2,572,044 2,491,222

5,406,247 5,436,089

Operating Expenses:

Employee 2,349,466 2,268,877

Professional 106,719 155,295

Materials 150,086 213,782

Outside services 1,579,709 1,666,790Consumables 498,013 513,102

Recurring operating 241,067 256,455

Building and service center operations 159,707 122,973

5,084,767 5,197,274

321,480 238,815

Nonoperating Revenues

(Expenses) 22,569 22,309

344,049 261,124

Distributions to Participants (333,356)

Net position at beginning of year 2,964,031 2,702,907

Net Position at End of Year $ 2,974,724 $ 2,964,031

Operating Income (Loss)

Net Income (Loss)

2014 2013

Total Operating Revenues

Total Operating Expenses


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CAPITAL ASSETS

The Agencys investment in capital assets as of September 30, 2014 amounted to $1,181,002.This investment in capital assets includes land; office furniture, fixtures and equipment; othermachinery and equipment; automobiles and trucks; and buildings.

Capital Assets- at cost

Land $ 339,837 $ 339,837

Administration building 1,258,458 1,258,458

Field equipment 951,042 925,796

Furniture and fixtures 428,698 407,573

Maintenance building 661,101 649,459

Less accumulated depreciation (2,458,134) (2,406,808)

$ 1,181,002 $ 1,174,315Total Capital Assets

2014 2013

Additional information on the Agencys capital assets can be found in Note 3 to the financialstatements.

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the Agencys finances.Questions concerning any of the information provided in this report or requests for additionalfinancial information should be addressed to the Accounting Manager of the Woodlands JointPowers Agency; P.O. Box 7580; The Woodlands, Texas 77380.


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BASIC FINANCIAL STATEMENTS

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Current Assets

Cash and temporary investments $ 1,258,391

Due from participants 651,480

Accounts receivable 1,016

Inventories 63,932Total Current Assets 1,974,819

Capital Assets

Land 339,837

Administration building 1,258,458

Field equipment 951,042

Furniture and fixtures 428,698

Maintenance building 661,101

Less accumulated depreciation (2,458,134)

Total Capital Assets 1,181,002

$ 3,155,821

Current Liabilities

Accounts payable and accrued expenses $ 181,277

Net PositionInvestment in capital assets 1,181,002

Unrestricted net position 1,793,542

Total Net Position 2,974,544

$ 3,155,821

Total Assets

Liabilities and Net Position

Total Liabilities and Net Position


STATEMENT OF NET POSITION

September 30, 2014

Assets

See Notes to Financial Statements. 10


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Operating Revenues

From participants $ 5,395,707

Others 10,540

5,406,247

Operating Expenses 5,084,767

321,480

Non-Operating Revenues (Expenses)

Interest 1,859

Other 20,710

22,569

344,049

Distributions to participants (333,536)

Net Position at Beginning of Year 2,964,031

Net Position at End of Year $ 2,974,544


Change in Net Position

Net Non-Operating Revenues (Expenses)


AND CHANGES IN NET POSITION

Year Ended September 30, 2014

STATEMENT OF REVENUES, EXPENSES




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Cash Flows from Operating Activities

Cash received from participants $ 5,268,212

Cash paid to suppliers and employees (5,101,157)

167,055

Cash Flows from Capital and Related Financing Activities

Distributions to participants (333,536)

Purchases of property and equipment (129,289)

(462,825)

Cash Flows from Investing Activities

Interest received on invested funds 1,859

Cash received for other 20,710

22,569

(273,201)

Cash and temporary investments at beginning of year 1,531,592

$ 1,258,391

Reconciliation of Operating Income to Net Cash

Flows from Operating Activities

Operating Income (Loss) $ 321,480

Adjustments to Reconcile Operating Income (Loss)

to Net Cash Flows Provided by Operating Activities:

Depreciation 122,602

Gain (Loss) on sale of assets

(Increase) Decrease in:

Due from participants (137,897)Accounts receivable (138)

Inventory (52,729)

Increase (Decrease) in:

Accounts payable and accrued expenses (86,263)

$ 167,055


STATEMENT OF CASH FLOWS

Year Ended September 30, 2014

Net Cash Provided by Operating Activities

Net Cash Provided by Operating Activities

Net Cash Used for Capital and

Related Financing Activities

Net Cash Provided by Investing Activities

Net Increase (Decrease) in Cash and Temporary Investments

Cash and Temporary Investments at End of Year



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NOTES TO FINANCIAL STATEMENTS

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NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting and reporting policies of the Woodlands Joint Powers Agency (the Agency)conform to accounting principles generally accepted in the United States of America asprescribed by the Governmental Accounting Standards Board (GASB). The following is asummary of the more significant policies consistently applied in the preparation of theaccompanying financial statements:

A. Reporting EntityThe Agency was created through interlocal contracts by and among Montgomery CountyMunicipal Utility District No.s 6, 7, 36, 39, 40, 46, 47, 60, 67, The Woodlands MunicipalUtility District No. 2 and The Woodlands Metro Center Municipal Utility District (the

Participating Districts) pursuant to the terms of the Interlocal Cooperation Act, Article4413 (32c), Vernons Annotated Texas Civil Statutes, as amended. The contractsprovide for the Agency to purchase certain equipment and supplies; to install taps andconnections to the Participating Districts water and sewer system; to perform repair andmaintenance work required in connection with the operation of the ParticipatingDistricts water, sewer and drainage systems; and to provide certain administrativeservices to the Participating Districts.

The reporting entity refers to the scope of activities, organizations and functionsincluded in the financial statements. The Agency is a separate, self-supportinggovernmental unit and is administered by a Board of Trustees who are appointed by the

Participating Districts. There are no dependent functions or agencies which meet any ofthe criteria for inclusion in the reporting entity in accordance with the requirements ofGASB.

B. Business-Type ActivitiesThe business-type activities and the related accounts of the Agency are organized on thebasis of an Enterprise Fund, which is considered a separate accounting entity. Theoperations of the Enterprise Fund are accounted for with a separate set of self-balancingaccounts that comprise its assets, liabilities, fund equity, revenues and expenses, asappropriate. The Enterprise Fund is used to account for operations (1) that are financedand operated in a manner similar to private business enterprises where the intent ofthe governing body is that the costs (expenses, including depreciation) of providing

services to customers on a continuing basis be financed or recovered primarily throughuser charges; or (2) where the governing body has decided that periodic determinationof revenues earned, expenses incurred, and/or net income is appropriate for capitalmaintenance, public policy, management control, accountability or other purposes.


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C. Measurement Focus and Basis of AccountingThe Enterprise Fund has a net income or capital measurement focus and are accountedfor using the accrual basis of accounting, under which revenues are recognized whenthey are earned. Expenses are recognized at the time the liability is incurred. With thismeasurement focus, all assets and liabilities associated with the operation of these fundsare included in the Statement of Net Position.

The Agency applies all GASB pronouncements as well as Financial Accounting StandardsBoard pronouncements issued on or before November 30, 1989, unless thosepronouncements conflict with or contradict GASB pronouncements.

D. Cash and Temporary Investments

Cash and cash equivalents include amounts in checking, savings, money marketaccounts and Public Funds Investment Pools.

E. Accounts ReceivableAn allowance for doubtful accounts is established as losses are estimated to haveoccurred through a provision of bad debts charged to earnings. Losses are chargedagainst the allowance when management believes the uncollectibility of a receivable isconfirmed. Subsequent recoveries, if any, are credited to the allowance. The allowancefor doubtful accounts is evaluated on a regular basis by management and is based onhistorical experience and specifically identified questionable receivables. The evaluationis inherently subjective as it requires estimates that are susceptible to significant revisionas more information becomes available.

At September 30, 2014, no allowance for future bad debts has been established as it ismanagements opinion that losses, if incurred, would not materially affect the financialstatements.

F. InventoriesInventories, which consist of utility system parts and materials, are stated at the lowerof cost (first-in, first-out method) or market. Expenses are recognized as the parts andmaterials are used.

G. DepreciationDepreciation is provided for in amounts sufficient to relate the cost of the depreciableproperty to operations on a straight-line basis over their estimated useful lives in theEnterprise Fund. The Agencys policy is to capitalize assets with initial cost exceeding$5,000.


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The useful lives by the type of assets are as follows:

Asset Class Useful LifeLand N/A

Administration building 40Field equipment 5 to 10Furniture and fixtures 5 to 10Maintenance building 25Leasehold improvements 10

G. Net PositionNet Position represents the difference between assets and liabilities. Net Position

investment in capital assets consists of capital assets, net of accumulated depreciation,reduced by the outstanding balances of any borrowing used for the acquisition,construction or improvements of those assets, and adding back unspent bond proceeds.

Net Position is reported as restricted when there are limitations imposed on their usethrough external restrictions imposed by creditors, grantors, or laws or regulations ofother governments. Unrestricted Net Position represents the remaining portion of netposition.

H. Date of Managements ReviewSubsequent events have been evaluated through January 7, 2015, which is the date thefinancial statements were available to be issued.

NOTE 2 CASH AND TEMPORARY INVESTMENTS

All cash, savings, money funds and Public Funds Investment Pools are in various financialinstitutions and are carried at cost.

Petty cash $ 1,600 $ N/A $ N/A

Collateral held by pledging banks in the

Authority's name 635,004 1,458,458 1,900,000

Cash equivalents, not requiring pledging

by banks, money funds & Pools 621,787 621,787 N/A

$ 1,258,391 $ 2,080,245

Market Value

of Collateral

Insurance &

Total Cash and Cash Equivalents

Book

Balance

Bank

Balance

The aforementioned cash equivalents are secured by U.S. Government obligations and donot require collateral to be held by the financial institution.


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A. Investments

The Agency is authorized to make investments as follows:

Obligations of the U.S. or its agencies Obligations of the state of Texas or its agencies Obligations guaranteed by the U.S. or the state of Texas Certificates of deposit and money market accounts of federally insured banks

and savings and loans domiciled in Texas

The Agency has one money market account at September 30, 2014.

B. Public Funds Investment Pools

Public funds investment pools in Texas (Pools) are established under the Agency of theInterlocal Cooperation Act, Chapter 79 of the Texas Government Code, and are subjectto the provisions of the Public Funds Investment Act (the Act), Chapter 2256 of theTexas Government Code. In addition to other provisions of the Act designed to promoteliquidity and safety of principal, the Act requires Pools to: (1) have an advisory boardcomposed of participants in the pool and other persons who do not have a businessrelationship with the pool and are qualified to advise the pool; (2) maintain a continuousrating of no lower than AAA or AAA-m or an equivalent rating by at least one nationallyrecognized rating service; and (3) maintain the market value of its underlying

investment portfolio within one half of one percent of the value of its shares.

The Agencys investments in Pools are reported at an amount determined by the fairvalue per share of the pools underlying portfolio, unless the pool is 2a7-like, in whichcase they are reported at share value. A 2a7-like pool is one which is not registeredwith the Securities and Exchange Commission (SEC) as an investment company, butnevertheless has a policy that it will, and does, operate in a manner consistent with theSECs Rule 2a7 of the Investment Company Act of 1940.

Interest Rate RiskIn accordance with its investment policy, the Agency manages its exposure to declinesin fair values by limiting the weighted average maturity of its investment portfolio to less

than two years to meet cash requirements for ongoing operation.

Credit Risk InvestmentsIn accordance with its investment policy, the Agency minimized credit risk losses due todefault of a security issuer or backer, by limiting investments to the safest types ofsecurities. As of the Agencys investments are investment pools, the Agency is notexposed to custodial credit risk.


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NOTE 3 CAPITAL ASSETS

The following table summarizes the changes in the components of capital assets:

Land $ 339,837 $ $ $ 339,837

Administration building 1,258,458 1,258,458

Field equipment 925,796 96,522 71,276 951,042

Furniture and fixtures 407,573 21,125 428,698

Maintenance building 649,459 11,642 661,101

Less accumulated depreciation (2,406,808) (122,602) (71,276) (2,458,134)

$ 1,174,315 $ 6,687 $ $ 1,181,002

Deletions

Total Capital Assets- net

Balance at

Sept 30, 2014

Balance at

Oct. 1, 2013 Additions

Land includes several sites for administrative and maintenance facilities which are subject tocertain deed restrictions as to usage or resale that may affect the value of such assets.


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NOTE 4 PARTICIPANTS EQUITY

Pursuant to the interlocal contracts, all Participating Districts have deposited with theAgency an initial contribution in the amount of $7,500. This deposit will not be refundedunless a Participating District withdraws from the Agency or the interlocal contracts areterminated.

The Agency bills and collects operating revenues from Participating Districts based on termsoutlined in the interlocal contracts. For the year ended September 30, 2014, the followingamounts were billed to the Participating Districts:

Tax administration $ 252,763

Administration 2,206,500

Engineering 193,414

Water taps 208,300

Inspections and connections 141,100

Meter reading 352,345

Water repair and maintenance 636,177

Sewer repair and maintenance 118,769

Billing fees 107,221

Culvert installation 15,000

Large ditch repair and maintenance 520,592

Storm sewer repair and maintenance 284,781Postage 136,832

Other 117,209

Capital budget contribution 104,704

$ 5,395,707


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The above amounts were billed to Participating Districts as shown below:

The Woodlands MUD No. 2 $ 86,219

Montgomery County MUD No. 6 323,915





Montgomery County MUD No. 46 1,159,284



Montgomery County MUD No. 67 453,837The Woodlands Metro Center MUD 315,370

$ 5,395,707

The Participating Districts account for their share of Agency Net Position on the equitymethod. Each Participating Districts respective shares are determined based on theirproportionate share of cash contributions and all other cash payments and contributionsmade to the Agency on a cumulative basis. At September 30, 2014, participants equity andcharges for the fiscal year allocated among participating districts is shown below:

The Woodlands MUD No. 2 $ 64,286 $ (3,993) $ 5,498 $ 65,791

Montgomery County MUD No. 6 363,015 (15,719) 20,654 367,950









The Woodlands Metro Center MUD 51,774 (5,738) 20,109 66,145

$ 2,964,031 $ (333,536) $ 344,049 $ 2,974,544

Participants'

EquityEnding

Participants'

EquityBeginning

NetChange

ToParticipants

Distribution


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NOTE 5 EMPLOYEE BENEFITS

In October 1984, the Agency adopted a retirement plan under Section 401(k) of the InternalRevenue Code. This plan allows eligible employees to defer up to $16,500 of theircompensation, on either a pre-tax or post-tax basis (a higher amount for those 50 andover), through contributions to the plan. The Agency will match up to a certain percentbased on years with the Agency of the eligible employees compensation. During the yearended September 30, 2014, $82,681 was paid by the Agency under this plan and chargedto expense.


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OTHER SUPPLEMENTARY INFORMATION

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Operating Revenues

Administration $ 2,469,813 $ 2,469,803 $ (10) $ 2,547,440Tap and culvert fees 67,644 364,400 296,756 397,427

Reimbursements 3,207,565 2,572,044 (635,521) 2,491,222

5,745,022 5,406,247 (338,775) 5,436,089

Operating Expenses

Employee 2,375,762 2,349,466 26,296 2,268,877

Professional 128,114 106,719 21,395 155,295

Materials 221,000 150,086 70,914 213,782

Outside services 2,103,826 1,579,709 524,117 1,666,790

Consumables 535,188 498,013 37,175 513,102

Recurring operating 261,858 241,067 20,791 256,455Building and service center operations 124,844 159,707 (34,863) 122,973

5,750,592 5,084,767 665,825 5,197,274

(5,570) 321,480 327,050 238,815

Nonoperating Revenues (Expenses)

Interest 3,645 1,859 (1,786) 3,081

Other 20,400 20,710 310 19,228

24,045 22,569 (1,476) 22,309

$ 18,475 $ 344,049 $ 325,574 $ 261,124

Revenues (Expenses)

Net Income (Loss)


Total Operating Expenses


Net Nonoperating

Budget Actual

Variance

Favorable

(Unfavorable)

2013

Actual


SCHEDULE OF REVENUES AND EXPENSES -

BUDGET AND ACTUAL

Year Ended September 30, 2014with comparative actual balances for the Year Ended September 30, 2013

2014

22


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Page 1 of 2

Employee

Salaries $ 1,574,746 $ 1,587,324 $ (12,578) $ 1,510,559

Part-time and contract 80,400 108,556 (28,156) 60,356

Social security (FICA) 126,619 120,116 6,503 114,622

Pension plan 80,795 82,681 (1,886) 81,487

Insured plans 490,975 430,972 60,003 477,133

Unemployment insurance 3,152 503 2,649 8,328

Workers' compensation 12,912 12,631 281 9,936

Payroll processing 6,163 6,683 (520) 6,456

2,375,762 2,349,466 26,296 2,268,877

Professional

Legal fees 40,004 42,021 (2,017) 53,684

Audit fees 8,500 8,500 8,500

Consultants 79,610 56,198 23,412 93,111128,114 106,719 21,395 155,295

Material

Tap connection 190,000 121,465 68,535 186,134

Water distribution 14,000 11,159 2,841 11,568

Storm and sanitary sewer 8,000 4,531 3,469 3,870

Culvert pipe 6,000 5,685 315 8,991

Materials 3,000 7,246 (4,246) 3,219

221,000 150,086 70,914 213,782

Outside Services

Water repair and maintenance 360,489 220,792 139,697 180,355Sewer repair and maintenance 255,404 68,279 187,125 99,050

Storm sewer repair and maintenance 220,430 221,227 (797) 284,776

Large ditch and culverts repairs 678,411 468,208 210,203 599,178

Meter installation 2,400 2,400 104,745

Engineering 150,900 183,202 (32,302) 48,352

Billing preparation 89,100 65,641 23,459

Meter reading 346,692 352,360 (5,668) 350,334

2,103,826 1,579,709 524,117 1,666,790


SCHEDULE OF OPERATING EXPENSES -

BUDGET AND ACTUAL


2014

Budget Actual

Variance

Favorable

(Unfavorable)

2013

Actual

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Page 2 of 2

Consumables

Office supplies 25,000 26,480 (1,480) 26,005

Computer supplies 10,000 10,871 (871) 15,520

Printing 62,693 38,331 24,362 27,908

Billing 29,645 34,037 (4,392) 32,497

Postage and delivery 173,950 158,908 15,042 201,040

Fuels and lubicration 60,000 54,139 5,861 57,326

Personnel and safety equipment 2,000 1,905 95 9,211

Other 43,500 50,740 (7,240) 46,765

Depreciation 128,400 122,602 5,798 96,830

535,188 498,013 37,175 513,102

Recurring Operating

Office machine maintenance 98,782 101,604 (2,822) 97,859

Insurance and surety bonds 25,500 26,093 (593) 23,251Travel, training and dues 35,800 32,686 3,114 33,134

Vehicle and field maintenance 22,692 10,147 12,545 15,670

Rental equipment and other 79,084 70,537 8,547 86,541

261,858 241,067 20,791 256,455

Building and Service Center Operations

Electric utilities 26,500 26,512 (12) 19,495

Telephone utilities 33,300 62,838 (29,538) 38,874

Gas, water and disposal 804 1,531 (727) 974

Outside services 44,640 51,001 (6,361) 43,345

Supplies and repairs 19,600 17,825 1,775 20,285

124,844 159,707 (34,863) 122,973

$ 5,750,592 $ 5,084,767 $ 665,825 $ 5,197,274Total Operating Expenses

Budget Actual (Unfavorable) Actual

2014

Variance

Favorable 2013


SCHEDULE OF OPERATING EXPENSES -

BUDGET AND ACTUAL


Woodlands JPA Audit 2014

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Transcript of Woodlands JPA Audit 2014