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Home My WebLink AboutAudit Report December 31 1961INDEX Accountant's Opinion Comments Page 1 2-3 Statement of Financial Condition 4 Statement of Surplus 5 Statement of Receipts and Disbursements 6-8 Schedule of Physical Properties 9-11 Schedule of Insurance in Force 12 WEAVER AND TIDWELL CERTIFIED PUBLIC ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS LLOYD J. WEAVER D. WAYNE TIDWELL J. T. SARTEE FRED A. STEIN TOMMIE E.RODDY, JR. WEAVER AND TIDWELL CERTIFIED PUBLIO ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS W. T. WAOOONER BUILDING FORT WORTH, TEXAS February 13, 1962 Honorable Mayor and City Council City of Euless, Texas We have examined the statement of financial condition of the CITY OF EULESS EULESS, TEXAS as of December 31, 1961, and the related statements of receipts and disbursements and statement of surplus for the eleven months ended December 31, 1961. Our examination was made in accordance with gen- erally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the accompanying statement of financial condition, statement of receipts and disbursements and statement of surplus present fairly the financial position of the CITY OF EULESS at December 31,1961,and the results of its operations for the eleven months then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. WEAVER AND TIDWELL Certified Public Accountants Page 2 COMMENTS Cash on hand consisted of revenues received in December, 1961, which were held over and deposited in January, 1962. Cash in bank balances were independently confirmed and found to be correct. The cash balance showed a net increase of $14,011.35 for the eleven months ended December 31, 1961. Total taxes assessed in 1961 were $72,892.98 based on a valu- ation of $10,420,300.00. The tax rate increased from fifty cents per $100.00 valuation to seventy cents. A summary of taxes assessed but uncollected as of December 31, 1961, follows: Year Assessment 1958 1959 1960 1961 $20,960.30 31,189.75 43,617.85 72,942.10 Collected this Year $ 28.50 312.05 5,178.20 51,820.79 Balance Uncollected $ 1,429.40 2,489.05 4,445.90 20,683.14 Percent Uncollected 6.82 % 7.98 10.19 28.37 The city purchased the following physical properties during the audit period: Filing Cabinet 7 1/2 H. P. Siren Royal Electric Typewriter 1961 Ford Patrol Car 1962 Ford Patrol Car 1962 Ford Truck Pirsch 750 GPM Pumping Engine Total Equipment Purchased Less: Trade -In Value Net Cost of Equipment Purchased Cost $ 42.95 538.50 200.00 2,172.13 2,214.23 1,620.56 12,059.80 $18,848.17 1,850.00 $16,998.17 Physical properties owned by the City of Euless were scheduled and the schedules are made a part of this report. Insurance cover- age was also examined and the insurance in force was scheduled. The City of Euless was indebted to the Hurst State Bank in the amount of $17,821.59 as of December 31, 1961. This indebtedness was WEAVER AND TIDWELL CERTIFIED PUBLIC ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 3 Comments - 2 - incurred for the following: Fire Truck #53 1962 Ford Pickup Truck 1962 Ford Patrol Car $14,836.80 1,620.56 1.364.23 Total $17.821.59 Examination of the insurance coverage revealed that the 1962 Ford pickup truck purchased during the audit period for the inspection department was not insured. This was pointed out to the city secretary during the course of the audit. A detail audit of all cash received by the City of Euless for the eleven months ended December 31, 1961, was made. This audit revealed that all funds received were properly accounted for with the exception of $30.38. Even this small sum may have been the result of a clerical error rather than any actual cash shortage. The detail audit was made because of the lack of internal control over cash received and because of the frequent absences from his office of the city secretary, Mr. Flippo. On previous audit re- ports we have commented that the small number of employees required to transact the city business made effective system of internal control impractical. The city, however, is now increasing in size and in the scope of activities, and it is our opinion that more definite controls over the handling of cash receipts should be put into practice. We recommend that the city secretary be made re- sponsible for all cash received during the business day, and that at the end of each day the receipts be placed in a locked bank sack, and deposited in the depository bank on the next following banking day. We further recommend that a change fund be established which would be available for use by the police department or other authorized personnel during the absence of the city secretary, and after the close of the working day. All money received by persons other than the city secretary or his assistants should be placed in the change fund. The city secretary would examine the change fund at the beginning of each business day, and see that the transactions therein are properly recorded. We further recommend that the practice of allowing the employees to cash checks from city funds, be discontinued unless the checks are acceptable for immediate deposit. WEAVER AND TIDWELL GERTITIED PUBLIC ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 4 ASSETS Current Assets Cash on Hand Cash in Bank - General Fund Cash in Bank - Interest and Sinking Fund Taxes Receivable - 1958 Taxes Receivable - 1959 Taxes Receivable - 1960 Taxes Receivable - 1961 Insurance Receivable - Employees Total Current Assets Physical Properties Police Department Equipment Fire Department Equipment Office Equipment General Equipment Motorized Equipment Community Center and Jail Total Physical Properties Total Assets $ 3,167.67 13,492.91 5,449.73 1,429.40 2,489.05 4,445.90 20,683.14 20.40 $ 3,753.77 781.00 2,597.55 1,999.85 42,405.50 14,125.61_ CITY OF EULESS GENERAL FUND STATEMENT OF FINANCIAL CONDITION DECEMBER 31, 1961 $ 51,178.20 65,663.28 $116.841.48 LIABILITIES Current Liabilities Withheld Taxes Payable Bond Deductions from Salaries Notes Payable - Hurst State Bank Total Current Liabilities SURPLUS Surplus Balance December 31, 1961 Total Liabilities and Surplus $ 1,479.90 10.56 17,821.59 $ 19,312.05 97.529.43 $116841.48 WEAVER AND TIDWELL CERTIFIED PUBLIC ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 5 CITY OF EULESS GENERAL FUND STATEMENT OF SURPLUS DECEMBER 31, 1961 Surplus Balance, February 1. 1961, $ 62,267.40 Add: Excess of Receipts over Disbursements $14,011.35 Physical Properties Purchased 16,998.17 Liabilities Liquidated 9,163.80 Taxes Assessed, Not Collected 20.683.14 Deduct: Total Additions 60.856.46 Prior Year Tax Accruals Collected 1958 Assessment 1959 Assessment 1960 Assessment Equipment Charged off Liabilities Assumed Prior Year Assessed Tax Adjustment Employees Advances Collected 25.80 312.05 5,178.20 2,863.07 16, 534. 96 667.80 12.55 $123,123.86 Total Deductions 25.594.43. Surplus Balance, December 31. 1961 ,1 97,529.43 WEAVER AND TIDWELL CERTIFIED PTJBLIG ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 6 CITY OF EULESS GENERAL FUND STATEMENT OF RECEIPTS AND DISBURSEMENTS, FOR THE ELEVEN MONTHS ENDED DECEMBER 31. 1961 Advances to Employees Collected Franchises Southwestern Bell Telephone $ 1,509.56 Texas Power and Light Co. 3,958.50 Weisenbaker & Fix 1,810.02 Lone Star Gas Company 1,740.71 Garbage 297.92 Texas Electric Service Co. 111.53 $ 32.95 Total Franchises. 9,428.24 Permits Issued Buildings $ 5,791.00 Street Paving 583.00 Plumbing 2,247.50 Electrical 2,284.00 Miscellaneous 48.00 Total Permits Tax Revenues 1958 Assessment 1959 Assessment 1960 Assessment 1961 Assessment Less: Discounts Allowed Police Department Income $52,209.84 389.05 Other Electrical Licenses $ 375.00 Penalties and Interest 242.01 Miscellaneous 261.44 Dog Licenses 63.00 Ordinance Sales 29.00 10,953.50 25.80 312.05 5,178.20 51,820.79 13,147.15 Total Other 970.45 Total Receipts $91,869.13 WEAVER AND TIDWELL CERTIFIED PUBLIO AGOOJNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 7 CITY OF EULESS GENERAL FUND STATEMENTS OF RECEIPTS AND DISBURSEMENTS FOR THE ELEVEN MONTHS ENDED DECEMBER 31, 1961 DISBURSEMENTS Physical Properties Office Equipment Police Department Equipment Fire Department Equipment Motorized Equipment $16,216.72 Less: Liabilities Assumed 15,044.50 $ 200.00 42.95 538.50 1,172.22 Total Physical Properties Purchased $ 1,953.67 Liabilities Liquidated Less: Liabilities Assumed $ 9,163.80 1,490.46 Net Liabilities Liquidated 7,673.34 Operating Expenses Police Department: Salaries $33,994.83 Gas and Oil 2,707.43 Auto Maintenance 1,449.73 Radio and Radar 1,012.81 Expense Account 865.70 Court Cases 514.00 Legal Publications 963.94 Insurance 503.00 Uniform Allowance 394.27 Warrants 350.00 Office 210.05 Educational Fund 283.00 Miscellaneous 101.84 Total Police Expenses 43,350.60 Office Salaries $ 7,821.75 Utilities 4,606.03 Tax Expense 1,977.27 Expense Account 1,876.82 Office Supplies 1,605.14 Repairs 1,012.19 Gas and Oil - Fire Department 728.65 Interest 827.87 Insurance 1,006.88 Fire Extinguisher 505.17 Signs 411.84 Miscellaneous 735.62 WEAVER AND TIDWELL CERTIFIED PUBLIC ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 8 CITY OF EULESS GENERAL FUND STATEMENT OF RECEIPTS AND DISBURSEMENTS FOR THE ELEVEN MONTHS ENDED DECEMBER 31, 1961 Operating Expenses - Continued Street Repairs $ 401.19 Audit 300.00 Tax Refund 40.41 Cash Short 30.38 Fire Department Fund 50.00 Fire Truck Repairs 245.75 Census 175.00 Election Expense 134.81 Dues 291.00 Pest Control 76.00 Total Operating Expenses $24,859.77 Advance to Employees 20.40 Total Cash Disbursed Excess of Receipts Over Disbursements Cash Account February 1, 1961 Cash Account December 31, 1961 Composition of Cash Account Cash on Hand Cash in Bank - General Fund Cash in Bank - Interest and Sinking Fund $ 3,167,67 13,492.91 5,449.73 77,857.78, $14,011.35 8,098.96, $22,110.31 Total $22.110.31 WEAVER AND TIDWELL GERTIFIED PUBLIC ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 9 CITY OF EULESS SCHEDULE OF PHYSICAL PROPERTIES DECEMBER 31, 1961 General Eauipment Stoves, five, 4-30-55 $ 53.50 Folding Steel Chairs, fifty, 7-27-57 125.00 Gibson Air Conditioner, 8-1-57 160.85 Water Fountain, 9-9-57 89.25 Coolerator Air Conditioner, 2 Ton, 9-10-58 248.88 Heatwave Air Conditioner, 6-30-59 1,275.00 3'x5' U. S. Flag, with stand, pole, eagle, cord and tossel set 24.39 3tx51 Texas Flag, with stand, pole, spear, cord and tossel set 22.98 Total Motorized Equipment - Fire Department Ford, 135 Cab Chassis Fire Truck Motor #C-87R8U155210 11-12-58 Pirsch - Ford 750 gal. Pumping Engine Leece - Neville Alternator 100 Amp. #481 Akron Gated Wye, 2 1/2 x 1 1/2 x 1 1/2, brass 250 Watt Transformer, with one 110 volt outlet 1960 Ford C-850 Cab and Chassis 3-8-60 Heater for 1960 Ford Truck Pirsch 750 G P M triple Combination Pumping Engine $ 6,075.49 11,203.00 280.00 47.59 35,00 6,277.00 47.70 12,059.80 S 1.999.89 Total 36.025.58 Motorized Equipment - Police Department 1950 Chevrolet Pick-up, Motor #HBA-110681 1951 Ford Truck, 158" cc, Motor #F5R1KL-15076 1961 Fairlane Ford, Motor #1D32Z-137488 1962 Ford Galaxie, Motor #2D52Z-112476 373,00 -0- 2,172.13 2,214.23 Total . 4,15.9� fz, WEAVER AND TIDWELL CERTIFIED .PUBLIC ACC MEMBERS OF THE AMERICAN CUNTANTS Page 10 CITY OF EULESS SCHEDULE OF PHYSICAL PROPERTIES DECEMBER 31. 1961 Mortorized Equipment - Inspection Department 1962 Ford Truck, Motor #F10JD-221125 S 1,E20 s� Police Department Equipment 2 Way Radio, Motorola Dual Channel, 12 Volt, Serial #391293, 8-30-57 Desk, Chair and File Cabinet for Police Chief's office, 8-30-57 Fire Extinguisher for Patrol Car, 9-11-57 Morrow Conelrad Radio Receiver, 12-12-57 Model 11-48R Remington Riot Gun, Grade 20" Barrel, Autoloading, 12 Guage Serial #5157977, 9-19-58 All Purpose Finger Print Kit, 7-31-58 Model 33 Speedometer Radar Unit, 4-20-58 Base Radio Station, 8-2-58 T5199V FM Transmitter Receiver Dual Channel with 50-60 Watts full R. F. power output, 8-31-60 Filing Cabinet, 5-26-61 $ 305.00 157.00 25.00 39.50 85.92 69.68 1,297.00 1,111.72 620.00 42.95 Total $ 5 • 71. Fire Department Equipment 2 Nozzles, 11-22-55 Equipment for Fire Marshall's Car Battery Charger, 11-19-60 7 1/2 H P 3 Phase Siren, 3-1-61 $ 118.52 66.60 57.38 538.50 Total 781.0a Office Equipment Desk, Table, Chair, 8-6-55 Royal Typewriter #KHN-1908574, 10-30-57 7 Drawer Used Check File, 11-18-58 Burroughs Adding Machine, Serial No. P-302326D, 9-12-58 Gray Letter File, 1-29-58 C-3352 Gray Card File, with guides, 1-15-58 Royal Typewriter, 19" Carriage, 2-24-59 Judges Chair, Stationers #4200, 4-20-59 $ 185.50 75.00 55.00 324.00 65.45 21.50 189.50 143.50 WEAVER AND TIDWELL CERTIFIED PUTBLIC ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 11 CITY OF EULESS SCHEDULE OF PHYSICAL PROPERTIES DECEMBER 31, 1961 Office Equipment - Continued Swivel Arm Chairs, 8, #830, 4-20-59 Conference Table, #6203P, 4-20-59 Secretarial Chair, #711, 4-24-59 Judges Stand, 4-30-59 Mimeograph A. B. Dick Model #416 Serial #251977, 5-1-59 Mimeograph Cabinet A. B. Dick Model 48-SD, 5-1-59 File, #29DD, 1-25-60 Side Chair, Brown, #20, 1-25-60 Drafting Stool, #624, 1-25-60 Posts and Rail for Court, 4-15-59 Office Safe, 4-30-60 Electric Typewriter, Royal, S W #13 -6817 518 $ 470.40 263.90 26.00 35.00 283.00 48.10 54.35 29.70 28.34 66.81 32.50 200.00 Total S 2..597.55 WEAVER AND TIDWELL GERTIFIED PUBLIC ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS Page 12 Aetna Insurance Company Aetna Insurance Company Aetna Insurance Company Aetna Insurance Company Aetna Insurance Company Policy Number C5354949 C5354946 CITY OF EULESS SCHEDULE OF INSURANCE IN FORCE DECEMBER 31, 1961 Effective Expiration Date Date 8-10-61 2-22-61 66-78-25 9-10-58 C5354951 10- 8-61 S-467342 S-467454 5- 1-61 8- 8-61 Coverage 8-10-62 1961 Ford Fairlane 4 Door 1962 Ford Galaxie Bodily Injury Bodily Injury Property Damage Collision 2-22-62 Comprehensive 1951 Ford Fire Truck Combined Additional Coverage Fire, Lightning and Transportation Theft 9-10-63 Fire, Lightning and Extended Coverage on City Hall and Fire Station 10- 8-62 1958 Ford Fire Truck with Peter Pirsch Body and'Equipment (2) 1960 Ford Fire Truck with Peter Pirsch Body and Equipment Bodily Injury Bodily Injury Property Damage Collision 5- 1-62 8- 8-62 Fire, Lightning and Transportation 1958 Ford 1960 Ford 1960 Ford Theft 1958 Ford 1960 Ford 1960 Ford Combined Additional Coverage 1958 Ford 1960 Ford 1960 Ford Public Official Bond - City Secretary Treasurer Public Official Bond - Chief of Police Limits $ 5,000.00 Each Person 10,000.00 Each Accident 5,000.00 Each Accident A.C.V. Less $100.00 A.C.V. A.C.V. A.C.V. A.C.V. 10,000.00 5,000.00 Each Person 10,000.00 Each Accident 5,000.00 Each Accident A.C.V. Less $100.00 17,425.00 18,337.00 18,337.00 17,425.00 18,337.00 18,337.00 17,425.00 18,337.00 18,337.00 1,000.00 1,000.00 Premium $503.00 5.00 64.80 160.89 174.13 193.45 50.35 16.79 50.35 5.00 5.00 WEAVER AND TIDWELL GERTIFIED PUBLIC ACCOUNTANTS MEMBERS OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS