--ooOoo-CONTENTS
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Elected Officials
Independent Auditors Report
3-4
5-8
10
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13-20
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President
Vice President
Secretary
Assistant
Secretary
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Trustee
Alternate Trustees
The Woodlands Municipal Utility District No. 2
Tom Conroy
George Jones
Montgomery County Municipal Utility District No. 6
Robert Berglund
Bruce Cunningham
Montgomery County Municipal Utility District No. 7
Bob Hoffmeister
Henry Cheek
Montgomery County Municipal Utility District No. 36
Kent Maggert
Scott Haynes
Montgomery County Municipal Utility District No. 39
Erik Berglund
Ronnie Rogers
Montgomery County Municipal Utility District No. 40
Jennifer Ferrara
Bill Bootz
Montgomery County Municipal Utility District No. 46
Felicia Poe
Jeanne Underwood
Montgomery County Municipal Utility District No. 47
Arthur Bredehoft
Montgomery County Municipal Utility District No. 60
Lloyd Mathews
Ron Kostelny
Larry Copeland
Roland Johnson
Henry Allcott
John Cozart
Other Matters
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise The Woodlands Joint Powers Agencys basic financial statements. The other supplementary
information is presented for purposes of additional analysis and is not a required part of the basic financial
statements.
The other supplementary information is the responsibility of management and was derived from and relate
directly to the underlying accounting and other records used to prepare the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit of the basic financial
statements and certain additional procedures, including comparing and reconciling such information directly
to 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 United
States of America. In our opinion, the other supplementary information is fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The management of the Woodlands Joint Powers Agency (the Agency) offers readers of the
Agencys financial statements this narrative overview and analysis of the financial activities of
the Agency for the year ended September 30, 2014. We encourage readers to consider the
information presented here in conjunction with the financial statements and the notes to the
financial statements.
FINANCIAL HIGHLIGHTS
The Agencys total assets were $3,155,821; of this amount, $1,181,002 represents
capital 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 than
operating expenses by $321,480.
State and local governments report the net value or Net Position in these major categories:
The Governmental Accounting Standards Board (GASB) believes the users of the Agencys
financial statements should know whether Net Position were invested in capital assets, are
restricted 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 the
case of the Agency, assets exceeded liabilities by $2,974,544 at the close of the most recent
fiscal year.
Assets
Current assets
Capital assets - net
Total Assets
Liabilities
Current liabilities
Total Liabilities
Net Position
Investment in capital assets
Unrestricted
Total Net Position
2014
1,974,819
1,181,002
3,155,821
$
$
2013
2,057,256
1,174,315
3,231,571
181,277
181,277
$
$
267,540
267,540
1,181,002
1,793,542
2,974,544
1,174,315
1,789,716
2,964,031
Operating Expenses:
Employee
Professional
Materials
Outside services
Consumables
Recurring operating
Building and service center operations
Total Operating Expenses
Operating Income (Loss)
Nonoperating Revenues
(Expenses)
Net Income (Loss)
Distributions to Participants
2014
2,469,803
364,400
2,572,044
5,406,247
2013
2,547,440
397,427
2,491,222
5,436,089
2,349,466
106,719
150,086
1,579,709
498,013
241,067
159,707
5,084,767
2,268,877
155,295
213,782
1,666,790
513,102
256,455
122,973
5,197,274
321,480
238,815
22,569
22,309
344,049
261,124
(333,356)
2,964,031
2,974,724
2,702,907
$
2,964,031
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; other
machinery and equipment; automobiles and trucks; and buildings.
Capital Assets - at cost
Land
Administration building
Field equipment
Furniture and fixtures
Maintenance building
Less accumulated depreciation
2014
339,837
1,258,458
951,042
428,698
661,101
(2,458,134)
1,181,002
2013
339,837
1,258,458
925,796
407,573
649,459
(2,406,808)
1,174,315
Additional information on the Agencys capital assets can be found in Note 3 to the financial
statements.
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 additional
financial information should be addressed to the Accounting Manager of the Woodlands Joint
Powers Agency; P.O. Box 7580; The Woodlands, Texas 77380.
Assets
Current Assets
Cash and temporary investments
Due from participants
Accounts receivable
Inventories
Total Current Assets
Capital Assets
Land
Administration building
Field equipment
Furniture and fixtures
Maintenance building
Less accumulated depreciation
Total Capital Assets
1,258,391
651,480
1,016
63,932
1,974,819
339,837
1,258,458
951,042
428,698
661,101
(2,458,134)
1,181,002
Total Assets
3,155,821
181,277
1,181,002
1,793,542
2,974,544
10
3,155,821
Operating Revenues
From participants
Others
$
Total Operating Revenues
Operating Expenses
5,395,707
10,540
5,406,247
5,084,767
Operating Income (Loss)
321,480
1,859
20,710
22,569
344,049
Distributions to participants
(333,536)
2,964,031
11
2,974,544
(333,536)
(129,289)
(462,825)
1,859
20,710
22,569
(273,201)
12
5,268,212
(5,101,157)
167,055
1,531,592
$
1,258,391
321,480
122,602
(137,897)
(138)
(52,729)
(86,263)
$
167,055
13
14
Useful Life
N/A
40
5 to 10
5 to 10
25
10
G. Net Position
Net 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 use
through external restrictions imposed by creditors, grantors, or laws or regulations of
other governments. Unrestricted Net Position represents the remaining portion of net
position.
H. Date of Managements Review
Subsequent events have been evaluated through January 7, 2015, which is the date the
financial 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 financial
institutions and are carried at cost.
Petty cash
Collateral held by pledging banks in the
Authority's name
Cash equivalents, not requiring pledging
by banks, money funds & Pools
Total Cash and Cash Equivalents
Book
Balance
$
1,600
Bank
Balance
$
N/A
635,004
1,458,458
621,787
621,787
1,258,391
Insurance &
Market Value
of Collateral
$
N/A
1,900,000
N/A
2,080,245
The aforementioned cash equivalents are secured by U.S. Government obligations and do
not require collateral to be held by the financial institution.
15
A. Investments
The Agency is authorized to make investments as follows:
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 the
Interlocal Cooperation Act, Chapter 79 of the Texas Government Code, and are subject
to the provisions of the Public Funds Investment Act (the Act), Chapter 2256 of the
Texas Government Code. In addition to other provisions of the Act designed to promote
liquidity and safety of principal, the Act requires Pools to: (1) have an advisory board
composed of participants in the pool and other persons who do not have a business
relationship with the pool and are qualified to advise the pool; (2) maintain a continuous
rating of no lower than AAA or AAA-m or an equivalent rating by at least one nationally
recognized 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 fair
value per share of the pools underlying portfolio, unless the pool is 2a7-like, in which
case they are reported at share value. A 2a7-like pool is one which is not registered
with the Securities and Exchange Commission (SEC) as an investment company, but
nevertheless has a policy that it will, and does, operate in a manner consistent with the
SECs Rule 2a7 of the Investment Company Act of 1940.
Interest Rate Risk
In accordance with its investment policy, the Agency manages its exposure to declines
in 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 Investments
In accordance with its investment policy, the Agency minimized credit risk losses due to
default of a security issuer or backer, by limiting investments to the safest types of
securities. As of the Agencys investments are investment pools, the Agency is not
exposed to custodial credit risk.
16
Additions
$
Deletions
$
96,522
21,125
11,642
(122,602)
1,174,315
6,687
71,276
(71,276)
$
Balance at
Sept 30, 2014
$
339,837
1,258,458
951,042
428,698
661,101
(2,458,134)
$
1,181,002
Land includes several sites for administrative and maintenance facilities which are subject to
certain deed restrictions as to usage or resale that may affect the value of such assets.
17
252,763
2,206,500
193,414
208,300
141,100
352,345
636,177
118,769
107,221
15,000
520,592
284,781
136,832
117,209
104,704
5,395,707
18
86,219
323,915
472,196
341,438
273,027
340,261
1,159,284
968,406
661,754
453,837
315,370
5,395,707
The Participating Districts account for their share of Agency Net Position on the equity
method. Each Participating Districts respective shares are determined based on their
proportionate share of cash contributions and all other cash payments and contributions
made to the Agency on a cumulative basis. At September 30, 2014, participants equity and
charges for the fiscal year allocated among participating districts is shown below:
Participants'
Distribution
Equity
To
Beginning
The Woodlands MUD No. 2
64,286
Participants'
Net
Participants
$
(3,993)
Equity
Change
$
5,498
Ending
$
65,791
363,015
(15,719)
20,654
367,950
459,442
(30,896)
30,109
458,655
392,947
(17,315)
21,771
397,403
58,862
(14,104)
17,409
62,167
340,697
(22,551)
21,696
339,842
322,370
(79,600)
73,920
316,690
457,147
(74,604)
61,749
444,292
272,020
(42,242)
42,196
271,974
181,471
(26,774)
28,938
183,635
51,774
(5,738)
20,109
66,145
344,049
$ 2,974,544
$ 2,964,031
19
(333,536)
20
21
2014
Budget
Operating Revenues
Administration
Tap and culvert fees
Reimbursements
Actual
2,469,813
67,644
3,207,565
2,469,803
364,400
2,572,044
Variance
Favorable
(Unfavorable)
$
(10)
296,756
(635,521)
2013
Actual
$
2,547,440
397,427
2,491,222
5,745,022
5,406,247
(338,775)
5,436,089
Operating Expenses
Employee
Professional
Materials
Outside services
Consumables
Recurring operating
Building and service center operations
2,375,762
128,114
221,000
2,103,826
535,188
261,858
124,844
2,349,466
106,719
150,086
1,579,709
498,013
241,067
159,707
26,296
21,395
70,914
524,117
37,175
20,791
(34,863)
2,268,877
155,295
213,782
1,666,790
513,102
256,455
122,973
5,750,592
5,084,767
665,825
5,197,274
(5,570)
321,480
327,050
238,815
3,645
20,400
1,859
20,710
(1,786)
310
3,081
19,228
24,045
22,569
(1,476)
22,309
18,475
22
344,049
325,574
261,124
2014
Budget
Employee
Salaries
Part-time and contract
Social security (FICA)
Pension plan
Insured plans
Unemployment insurance
Workers' compensation
Payroll processing
Professional
Legal fees
Audit fees
Consultants
Material
Tap connection
Water distribution
Storm and sanitary sewer
Culvert pipe
Materials
Outside Services
Water repair and maintenance
Sewer repair and maintenance
Storm sewer repair and maintenance
Large ditch and culverts repairs
Meter installation
Engineering
Billing preparation
Meter reading
Actual
1,574,746
80,400
126,619
80,795
490,975
3,152
12,912
6,163
2,375,762
1,587,324
108,556
120,116
82,681
430,972
503
12,631
6,683
2,349,466
Variance
Favorable
(Unfavorable)
$
(12,578)
(28,156)
6,503
(1,886)
60,003
2,649
281
(520)
26,296
1,510,559
60,356
114,622
81,487
477,133
8,328
9,936
6,456
2,268,877
40,004
8,500
79,610
128,114
42,021
8,500
56,198
106,719
23,412
21,395
53,684
8,500
93,111
155,295
190,000
14,000
8,000
6,000
3,000
221,000
121,465
11,159
4,531
5,685
7,246
150,086
68,535
2,841
3,469
315
(4,246)
70,914
186,134
11,568
3,870
8,991
3,219
213,782
360,489
255,404
220,430
678,411
2,400
150,900
89,100
346,692
2,103,826
220,792
68,279
221,227
468,208
139,697
187,125
(797)
210,203
2,400
(32,302)
23,459
(5,668)
524,117
180,355
99,050
284,776
599,178
104,745
48,352
23
183,202
65,641
352,360
1,579,709
(2,017)
2013
Actual
350,334
1,666,790
2014
Budget
Consumables
Office supplies
Computer supplies
Printing
Billing
Postage and delivery
Fuels and lubicration
Personnel and safety equipment
Other
Depreciation
Recurring Operating
Office machine maintenance
Insurance and surety bonds
Travel, training and dues
Vehicle and field maintenance
Rental equipment and other
Actual
Variance
Favorable
(Unfavorable)
2013
Actual
25,000
10,000
62,693
29,645
173,950
60,000
2,000
43,500
128,400
535,188
26,480
10,871
38,331
34,037
158,908
54,139
1,905
50,740
122,602
498,013
(1,480)
(871)
24,362
(4,392)
15,042
5,861
95
(7,240)
5,798
37,175
26,005
15,520
27,908
32,497
201,040
57,326
9,211
46,765
96,830
513,102
98,782
25,500
35,800
22,692
79,084
261,858
101,604
26,093
32,686
10,147
70,537
241,067
(2,822)
(593)
3,114
12,545
8,547
20,791
97,859
23,251
33,134
15,670
86,541
256,455
26,500
33,300
804
44,640
19,600
124,844
26,512
62,838
1,531
51,001
17,825
159,707
(12)
(29,538)
(727)
(6,361)
1,775
(34,863)
19,495
38,874
974
43,345
20,285
122,973
5,750,592
24
5,084,767
665,825
5,197,274