greater east end management district...september 30, 2014 t a b l e o f c o n t e n t s page...

GREATER EAST END MANAGEMENT DISTRICT

HARRIS COUNTY, TEXAS

ANNUAL FINANCIAL REPORT

SEPTEMBER 30, 2014

T A B L E O F C O N T E N T S

PAGE INDEPENDENT AUDITOR’S REPORT 1-2 MANAGEMENT’S DISCUSSION AND ANALYSIS 3-11 BASIC FINANCIAL STATEMENTS STATEMENT OF NET POSITION AND GOVERNMENTAL FUNDS BALANCE SHEET 12-13

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT

OF NET POSITION

14

STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

15-16

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,

EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES

17 NOTES TO THE FINANCIAL STATEMENTS 18-32 REQUIRED SUPPLEMENTARY INFORMATION

SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL-GENERAL FUND

34

SUPPLEMENTARY INFORMATION – REQUIRED BY GOVERNMENT AUDITING STANDARDS

INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

36-37

INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND

ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 38-39

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 40

NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 41

SCHEDULE OF FINDINGS AND QUESTIONED COSTS 42-43

SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 44

SUPPLEMENTARY INFORMATION – REQUIRED BY THE WATER DISTRICT FINANCIAL

MANAGEMENT GUIDE

NOTES REQUIRED BY THE WATER DISTRICT FINANCIAL MANAGEMENT GUIDE (Included in

the notes to the financial statements)

GENERAL FUND EXPENDITURES 46 INVESTMENTS 47 ASSESSMENTS LEVIED AND RECEIVABLE 48

COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES GENERAL FUND - FIVE

YEARS

49-50 BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS 51-53

McCALL GIBSON SWEDLUND BARFOOT PLLC Certified Public Accountants

13100 Wortham Center Drive Suite 235 111 Congress Avenue Houston, Texas 77065-5610 Suite 400 (713) 462-0341 Austin, Texas 78701 Fax (713) 462-2708 (512) 610-2209 E-Mail: [email protected] www.mgsbpllc.com

Member of American Institute of Certified Public Accountants

Texas Society of Certified Public Accountants

INDEPENDENT AUDITOR’S REPORT

Board of Directors Greater East End Management District Harris County, Texas

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities and each major fund of the Greater East End Management District (the “District”), as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the District’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting 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 our audit opinions. Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities and each major fund of the District as of September 30, 2014, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Board of Directors Greater East End Management District

- 2 -

Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis on pages 3 through 11 and the Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget and Actual – General Fund on page 34 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the District’s basic financial statements. The supplementary information required by the Texas Commission on Environmental Quality as published in the Water District Financial Management Guide is presented for purposes of additional analysis and is not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U. S Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements. The supplementary information and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. The supplementary information, excluding that portion marked “Unaudited” on which we express no opinion, and the schedule of expenditures of federal awards 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 or to 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 information is fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated February 26, 2015, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. The report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance.

McCall Gibson Swedlund Barfoot PLLC Certified Public Accountants February 26, 2015

GREATER EAST END MANAGEMENT DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE YEAR ENDED SEPTEMBER 30, 2014

- 3 -

USING THIS ANNUAL REPORT Our discussion and analysis of Greater East End Management District’s (the “District”) financial performance provides an overview of the District’s financial activities for the fiscal year ended September 30, 2014. Please read it in conjunction with the District’s financial statements, which begin on page 12. In addition to this discussion and analysis, this annual report consists of:

The District’s basic financial statements; Notes to the financial statements, which provide additional information essential to a full

understanding of the data provided in the financial statements; Supplementary information required by the Governmental Accounting Standards Board

(GASB) concerning the District’s budget; and Other Texas supplementary information required by the District’s state oversight agency,

the Texas Commission on Environmental Quality (TCEQ). GOVERNMENT-WIDE FINANCIAL STATEMENTS The District’s annual report includes two financial statements combining the government-wide financial statements and the fund financial statements. The government-wide portion of these statements provides both long-term and short-term information about the District’s overall status. Financial reporting at this level uses a perspective similar to that found in the private sector with its basis in full accrual accounting and elimination or reclassification of internal activities. The first of the government-wide statements is the Statement of Net Position. This information is found in the Statement of Net Position column on pages 12 and 13. The Statement of Net Position is the District-wide statement of its financial position presenting information that includes all of the District’s assets, liabilities and deferred inflows and outflows of resources, with the difference reported as net position. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the District as a whole is improving or deteriorating. Evaluation of the overall health of the District would extend to other non-financial factors. The government-wide portion of Statement of Activities on pages 15 and 16 reports how the District’s net position changed during the current fiscal year. All current year revenues and expenses are included regardless of when cash is received or paid. FUND FINANCIAL STATEMENTS The combined statements also include fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The District has two governmental fund types and considers each a major fund. The General Fund accounts for resources not accounted for in another fund, assessment revenues, costs and general expenditures. The Special Revenue Fund accounts for



- 4 -

FUND FINANCIAL STATEMENTS (Continued) the activities of the East End Improvement Corporation, EEIC, a blended component unit of the District. Governmental funds are reported in each of the financial statements. The focus in the fund statements provides a distinctive view of the District’s governmental funds. These statements report short-term fiscal accountability focusing on the use of spendable resources and balances of spendable resources available at the end of the year. They are useful in evaluating annual financing requirements of the District and the commitment of spendable resources for the near-term. Since the government-wide focus includes the long-term view, comparisons between these two perspectives may provide insight into the long-term impact of short-term financing decisions. The adjustments columns, the Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position on page 14 and the Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Statement of Activities on page 17 explain the differences between the two presentations and assist in understanding the differences between these two perspectives. NOTES TO THE FINANCIAL STATEMENTS The accompanying notes to the financial statements provide information essential to a full understanding of the government-wide and fund financial statements. The notes to the financial statements can be found on pages 18 through 32 in this report. FINANCIAL HIGHLIGHTS Revenues The following section summarizes significant financial revenue events for the fiscal year ending September 30, 2014: Assessments - For the 2014 fiscal year (FY 14), the District funded the majority of its programs with revenue generated by an assessment on commercial properties within the boundaries of its service area at a rate of $0.15 per $100 valuation. (The Texas Legislature amended the governing legislation of the District in 2007 to permit assessments to include multifamily properties of 13-or-more units.) As of the 2013 assessment, the total property valuation for the District’s service area was $1,194,122,000. In FY 14, the District took in $1,757,308 in assessments. Of this amount $1,725,993 originated with the 2013 assessment levy, and $31,315 was the result of collections for amounts due from assessments made in prior years. For more information about assessments receivable, please refer to page 48 of this audit.



- 5 -

FINANCIAL HIGHLIGHTS (Continued) Revenues (Continued) Considered in relation to general fund expenditures for FY 14, the monies spent on District services, excluding livable centers expenses, of which most are funded with federal grants, constitute 142% of the assessments received for the year. Other revenue used to fund District services was primarily generated by the graffiti abatement program. Greater East End Management District (District) - In addition to funds from assessments, the District took in revenue from its graffiti abatement and field services programs. The total amount of revenue for these programs during FY 14 was $551,627, which constitutes 14.4% of the total revenues of the General Fund. The graffiti program of the local government corporation remained constant during FY 14. The District is currently maintaining existing contracts for fourteen special districts and the City of Houston. East End Improvement Corporation (EEIC) - In this audit, monies that flow into the EEIC are presented as “Contract Revenue” and “Contributions” in both the “Government –Wide Financial Analysis” and the “Statement of Activities and Governmental Fund Revenues, Expenditures and Changes in Fund Balance.” “Contract Revenue” is composed of funds transferred into the EEIC for payment of security contracts with the Precinct Six Constable’s Office of Harris County. In FY 14, the “Contract Revenue” for FY 14 included monies paid by the District for services for two deputies and one lieutenant; Gulfgate Partners, L.P. for five deputies and one sergeant; Pelec Development for two deputies; and Baker Hughes for three deputies. All money received by the EEIC for these services is paid to Harris County. No administrative service fees are charged to cover the costs of having the EEIC function as a manager of the contracts and conduit for funds. The ability of the EEIC to receive tax-deductable contributions is a valuable mechanism for funding items essential to both the District and the East End as a whole. Expenditures The District funds the vast majority of its expenditures with the General Fund, and the services paid for with these monies fall into six categories: 1.) Security and Public Safety, 2.) Marketing and Perception Enhancement, 3.) Visual and Infrastructure Improvements and Services, 4.) Workforce Training, 5.) Program Support, and 6.) Livable Center. The total amount spent by the District for these General Fund services and other ancillary services is $4,180,562.



- 6 -

FINANCIAL HIGHLIGHTS (Continued) Expenditures (Continued) Within the six service areas of the General Fund, there are two major fixed costs for FY 14: payments to Harris County for security contract services rendered by the Precinct Six Constable ($247,598) included in the budget for Security and Public Safety, and right-of-way maintenance contract costs ($215,820), included in the budget for Visual and Infrastructure Improvements and Services. The District’s governing legislation required only the first Service Plan to set aside 3% of assessment revenue for workforce. However, there currently is no specified percentage of revenues required for workforce development. These fixed costs, in total, count as 11.1% of the total General Fund Expenditures and consume 12.1% of the District’s total General Fund Revenue for FY 14. Of the total costs for Program Support, which stood at $756,289 in FY 14, a significant portion are dedicated to stable and recurring expenses, such as rent and utilities, professional fees (such as legal, audit, and bookkeeping), board meeting supplies, and office security. The items in this category that are most subject to variation from one fiscal year to another are salaries and benefits for employees. For FY 14, the personnel costs (including both salaries and benefits for the administrative staff and crew staff combined) were $761,679 and constituted 18% percent of the total General Fund Expenditures. Beyond providing administrative support and review of day-to-day operations, the staff of the District managed or assisted in the oversight of the following specific programs in FY 14:

1. Law Enforcement Coordination Team Meetings: District staff hosts, on a monthly basis, a meeting for law enforcement officers where they exchange information in a confidential setting with their peers from other agencies. This flow of information frequently results in action against criminal elements that operate in the East End.

2. Graffiti Abatement: District staff manages and operates a graffiti abatement program

for the East End and 14 special districts and the City of Houston. The program serves an important public safety function by quickly removing gang-related graffiti. 2,409 sites were abated in the East End, and 26,285 sites in all service areas in FY 14.

3. Right-of-Way Maintenance: District staff directs the work of the contracted labor that

picks up litter and cuts vegetation in the right-of-way. Further, District staff provides additional right-of-way services, such as tire disposal and tree trimming. More than 48 tons of trash and debris were removed out of the East End in FY 14. A collaborative project with TxDOT to maintain the I-45 Gulf Freeway corridor between Loop 610 and Lockwood with tree trimming, mowing and litter removal was started in FY 14. The District outsources a portion of the work for this project.



- 7 -

FINANCIAL HIGHLIGHTS (Continued) Expenditures (Continued)

4. Illegal Dump Removal: District staff regularly clears illegal dumps. Dumped materials are often the product of the construction industry, although in many cases residential and commercial restaurant waste is included among the debris.

5. Inspection Services: District staff regularly patrols the East End and reports to the

proper authorities all overgrown lots, abandoned structures, and damaged infrastructure. Further, District staff inspects, on a quarterly basis, all streetlights in the East End and 591 lamps were repaired in FY 14. All lights that are not operating are reported to CenterPoint, the provider of electric transmission and distribution services for the area.

6. Community Service: District staff oversees the work of numerous community service

workers. The additional labor provided by these groups is an integral part of how the District provides so much service within a very limited budget. In FY 14, the District utilized 1,039 community service hours. The District partners with the Harris County Sheriff’s Office, utilizing supervised inmates to assist with litter pick up and special projects.

7. Community Development Projects: District staff hosts community exhibits and

targeted actions such as clean-up days that build community pride and awareness of the strengths of the East End.

8. Capital Improvements: District staff seeks out opportunities and funding for large

capital improvement projects, such as the federally and state-funded East End Streetscape Project, completed in 2009, which installed extensive pedestrian, beautification, and safety improvements at four East End entryways. Also, District staff seeks out and participates in grants that fund future capital improvements to the East End. In FY 10, the District was awarded a $5 million stimulus grant in connection with Livable Centers, which was used on improvements in the Second Ward area to make it a more pedestrian friendly and transit accessible community. The District has invested $2.25 million of its reserves into improving the pedestrian environment along Harrisburg Boulevard, next to the new East End light rail, and with that initial investment, has further leveraged more than $27 million to improve transit connections, build new pedestrian and bike trails, improve sidewalks on Canal and Delano streets, and develop a bike-pedestrian plaza and green space. Funding from TIGER 4 grant awarded to the City of Houston is being used to renovate Guadalupe Plaza Park, with project oversight provided by the District’s staff.



- 8 -

FINANCIAL HIGHLIGHTS (Continued) Expenditures (Continued)

9. Marketing and Branding: District staff publishes a newsletter for constituents that provide essential and interesting updates about the East End and the activities of the District. The District maintains its website and Facebook enabling faster updates and expanded program information to constituents and the East End Community. Additionally, the District staff sends e-blasts to targeted groups who are interested in a variety of District programs and projects, and publishes a monthly hard-copy flyer for constituents without electronic access. In FY 14, the District worked with East Downtown Management District and the Houston East End Chamber of Commerce to further brand the East End as a destination for new businesses, residents, and visitors.

10. Workforce Training: District staff establishes and implements an annual effort to

provide workforce training for residents and workers of the East End. In FY 14, the District made the second of two $45,000 payments toward an East End workforce initiative with a collaborative partner, SER Jobs for Progress, to train qualified workers for skilled East End jobs.

11. Livable Centers: In FY 2014, the District entered into agreement with TIRZ 18 and

the Houston-Galveston Area Council to conduct a feasibility study to facilitate the creation of quality places within the District and the TIRZ that further create multi- modal travel choices and determine future Livable Centers implementation projects. The total cost of the study is $287,500, with 20% of the cost shared between the District and TIRZ 18, and 80% of the cost paid by H-GAC.

In addition to funding recurring expenses, such as those for security contracts, right-of-way maintenance, workforce development, and program support, the District has provided matching funds for capital improvement projects in the Livable Centers. The costs for maintenance of these projects are ongoing, and the District will purchase necessary equipment to aid in maintenance of these projects. GOVERNMENT-WIDE FINANCIAL ANALYSIS Net Position may serve over time as a useful indicator of the District’s financial position. In the case of the District, assets exceeded liabilities by $2,792,586 as of September 30, 2014. A portion of the District’s net position reflects its net investment in capital assets (e.g. furniture and fixtures, vehicles, equipment and land improvements).



- 9 -

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) The following is a comparative analysis of government-wide changes in net position:

2014 2013Change Positive

(Negative)Current and Other Assets 1,641,047$ 1,789,799$ (148,752)$ Capital Assets (Net of Accumulated Depreciation) 1,490,474 1,546,611 (56,137)

Total Assets 3,131,521$ 3,336,410$ (204,889)$

Accounts Payable 201,796$ 115,998$ 85,798$ Other Liabilities 137,139 137,135 4

Total Liabilities 338,935$ 253,133$ 85,802$

Net Position:Net Investment in Capital Assets 1,490,474$ 1,546,611$ (56,137)$ Restricted 7,226 5,325 1,901 Unrestricted 1,294,886 1,531,341 (236,455)

Total Net Position 2,792,586$ 3,083,277$ (290,691)$

Summary of Changes in the Statement of Net Position



- 10 -

GOVERNMENT-WIDE FINANCIAL ANALYSIS (Continued) The following table provides a summary of the District’s operations for the years ended September 30, 2014, and September 30, 2013. The District’s net position decreased by $290,691.

2014 2013Change Positive

(Negative)Revenues:

Assessments 1,740,890$ 1,655,056$ 85,834$ Contract Revenue 1,061,044 1,061,952 (908) Graffiti Revenue 551,627 564,319 (12,692) Contributions 25,453 5,500 19,953 Rent Revenues 25,224 24,619 605 Grant Revenues 1,587,730 3,856,313 (2,268,583) Penalty and interest 25,344 34,659 (9,315) Miscellaneous Revenues 11,445 49,818 (38,373) Interest 1,847 2,482 (635)

Total Revenues 5,030,604$ 7,254,718$ (2,224,114)$

Expenses for Services 5,321,295 5,815,778 494,483

Change in Net Position (290,691)$ 1,438,940$ (1,729,631)$ Net Position, Beginning of Year 3,083,277 1,644,337 1,438,940 Net Position, End of Year 2,792,586$ 3,083,277$ (290,691)$

Summary of Changes in the Statement of Activities

FINANCIAL ANALYSIS OF THE DISTRICT’S GOVERNMENTAL FUNDS

The District’s combined fund balances as of September 30, 2014, were $1,068,025, a decrease of $342,701 from the prior year. The fund balance in the General Fund decreased by $344,602 primarily due to operating expenses exceeding revenues. The fund balance in the Special Revenue Fund increased by $1,901 primarily due to collection of contract revenues and contributions exceeding current program support expenditures. GENERAL FUND BUDGETARY HIGHLIGHTS

The Board of Directors did not amend the budget during the current fiscal year. Actual net revenues were $551,927 less than budgeted mainly due to the actual grant revenues/reimbursements received being less than anticipated in the budget. Actual expenditures were $546,076 less than budgeted expenditures primarily due to lower than anticipated expenditures in the Visual and Infrastructure Improvement and Services and Livable Center budget category. See the budget to actual comparison on page 34.



- 11 -

CAPITAL POSITION The District’s investment in capital assets as of September 30, 2014, amounts to $1,490,474 (net of accumulated depreciation).

Capital Assets, Net of Accumulated Depreciation: 2014 2013 Increase (Decrease)Furniture and Fixtures 4,984$ 8,764$ (3,780)$ Vehicles 25,217 31,071 (5,854) Equipment 50,792 16,609 34,183 Leasehold Improvements 18,725 19,245 (520) Land Improvements 1,390,756 1,470,922 (80,166)

Total Net Capital Assets 1,490,474$ 1,546,611$ (56,137)$

Capital Assets At Year-End, Net of Accumulated Depreciation

Additional information on the District’s capital assets can be found in Note 5 of this report. CONTACTING THE DISTRICT’S MANAGEMENT This financial report is designed to provide a general overview of the District’s finances. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Greater East End Management District, P.O. Box 230099, Houston, Texas 77223 or call 713-928-9916. The District’s website address is www.greatereastend.com.

The accompanying notes to the basic financial Statements are an integral part of this report.

- 12 -

Special General Fund Revenue Fund

ASSETSCash, Note 3 1,041,095$ 56,439$ Investments, Note 3 45,327Receivables:

Assessments 105,531Grant Revenue 201,724Other 81,872

Due from Other Funds 500Prepaid Costs 20,633 88,426 Capital Assets (Net of Accumulated Depreciation), Note 5

TOTAL ASSETS 1,496,682$ 144,865$

LIABILITIESAccounts Payable 201,796$ -$ Due to other funds 500Deposit on Contracts 30,453 Security Deposits 106,686

TOTAL LIABILITIES 201,796$ 137,639$

DEFERRED INFLOWS OF RESOURCESAssessments 105,531$ -$ Grants 128,556

TOTAL DEFERRED INFLOWS OF RESOURCES 234,087$ -$

FUND BALANCESNonspendable-Prepaid Costs 20,633$ 88,426$ Committed - Capital Improvement Projects, Note 2 656,532

Assigned:Budget Stabilization Fund, Note 2 170,000 Contingency reserve, Note 2 150,000 Vehicle Replacement Fund, Note 2 40,000 Streetscape Project, Note 2 23,634

Unassigned - (81,200) TOTAL FUND BALANCES 1,060,799$ 7,226$

TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 1,496,682$ 144,865$

NET POSITIONNet Investment in Capital AssetsRestricted for Special Revenue Fund OperationsUnrestricted

TOTAL NET POSITION

GREATER EAST END MANAGEMENT DISTRICTSTATEMENT OF NET POSITION AND

GOVERNMENTAL FUNDS BALANCE SHEETSEPTEMBER 30, 2014


- 13 -

Statement of Total Adjustments Net Position

1,097,534$ -$ 1,097,534$ 45,327 45,327

105,531 105,531 201,724 201,724

81,872 81,872 500 (500)

109,059 109,059 1,490,474 1,490,474

1,641,547$ 1,489,974$ 3,131,521$

201,796$ -$ 201,796$ 500 (500) -

30,453 30,453 106,686 106,686 339,435$ (500)$ 338,935$

105,531$ (105,531)$ -$ 128,556 (128,556) 234,087$ (234,087)$ -$

109,059$ (109,059) 656,532 (656,532)

170,000 (170,000) 150,000 (150,000)

40,000 (40,000) 23,634 (23,634)

(81,200) 81,200 1,068,025$ (1,068,025)$ -$

1,641,547$

1,490,474$ 1,490,474$ 7,226 7,226

1,294,886 1,294,886 2,792,586$ 2,792,586$


- 14 -

Total Fund Balances - Governmental Funds 1,068,025$

Amounts reported for governmental activities in the Statement of Net Position are different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported as assets in the governmental funds. 1,490,474

Deferred grant revenues become part of recognized revenues in the governmental 128,556 activities of the District.

Deferred assessment revenues for the 2013 and prior years became part of recognized revenues in the governmental activities of the District. 105,531

Total Net Position - Governmental Activities 2,792,586$

GREATER EAST END MANAGEMENT DISTRICTRECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO THE STATEMENT OF NET POSITIONSEPTEMBER 30, 2014

THIS PAGE INTENTIONALLY LEFT BLANK

The accompanying notes to basic financial Statements are an integral part of this report.

- 15 -

SpecialGeneral Fund Revenue Fund

REVENUESAssessment Revenues, Note 4 1,736,299$ -$ Contract Revenue 1,061,044Graffiti Revenue 551,627Rent Revenues 25,224Grant Revenues 1,484,174Contributions 25,453 Penalty and Interest 25,344Investment Revenues 1,847Other Revenues 11,445

TOTAL REVENUES 3,835,960$ 1,086,497$

EXPENDITURES/EXPENSESService Operations:

Security and Public Safety 593,959$ 1,061,045$ Marketing and Perception Enhancement 619,373Visual and Infrastructure Improvement and Services 431,549 19,669Workforce Training 148Program Support 756,289 3,882Livable Center 1,718,653

Depreciation, Note 5Capital Outlay 60,591

TOTAL EXPENDITURES/EXPENSES 4,180,562$ 1,084,596$

NET CHANGE IN FUND BALANCES (344,602)$ 1,901$

CHANGE IN NET POSITION

FUND BALANCES/NET POSITION - OCTOBER 1, 2013 1,405,401 5,325

FUND BALANCES/NET POSITION - SEPTEMBER 30, 2014 1,060,799$ 7,226$


EXPENDITURES AND CHANGES IN FUND BALANCE

STATEMENT OF ACTIVITIES AND GOVERNMENTAL FUND REVENUES,



- 16 -

Statement Total Adjustments of Activities

1,736,299$ 4,591$ 1,740,890$ 1,061,044 1,061,044

551,627 551,62725,224 25,224

1,484,174 103,556 1,587,73025,453 25,45325,344 25,344

1,847 1,84711,445 11,445

4,922,457$ 108,147$ 5,030,604$

1,655,004$ -$ 1,655,004$ 619,373 619,373451,218 451,218

148 148760,171 760,171

1,718,653 1,718,653116,728 116,728

60,591 (60,591)

5,265,158$ 56,137$ 5,321,295$

(342,701)$ 342,701$ -$

(290,691) (290,691)

1,410,726 1,672,551 3,083,277

1,068,025$ 1,724,561$ 2,792,586$


- 17 -

Net Change in Fund Balances - Governmental Funds (342,701)$

Amounts reported for governmental activities in the Statement of Activities are different because:

Governmental funds report assessment revenues when collected. However, in the Statement of Activities, revenue is recorded in the accounting period for which the assessments are levied. 4,591

Governmental funds report grant revenues when collected. However, in the Statement of Activities, revenue is recorded in the accounting period for which expenses occur. 103,556

Governmental funds report capital expenditures in the period purchased. However, in the

Statement of Net Position, capital assets are increased by new purchases and the Statement of Activities is not affected. 60,591

Governmental funds do not account for depreciation. However, in the Statement of Net Position, capital assets are depreciated and depreciation expense is recorded in the Statement of Activities. (116,728)

Change in Net Position - Governmental Activities (290,691)$

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OFREVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

FOR THE YEAR ENDED SEPTEMBER 30, 2014TO THE STATEMENT OF ACTIVITIES


GREATER EAST END MANAGEMENT DISTRICT NOTES TO THE FINANCIAL STATEMENTS

SEPTEMBER 30, 2014

- 18 -

NOTE 1. CREATION OF DISTRICT Greater East End Management District (the “District”), a municipal management district over the City of Houston’s (Houston) greater east end area, was created by the State of Texas on April 16, 1999 as a body politic and corporate, and a governmental agency of the State of Texas. A fifteen member Board of Directors oversees the operations of the District. The District’s five main areas of operation include security and public safety; marketing and perception enhancement; visual and infrastructure improvements and services; workforce training; and administration of the District. All programs are under a ten-year service plan for the east end area revitalization. Security and Public Safety includes a law enforcement security patrol in partnership with public and private entities and a graffiti abatement program. Marketing and perception are accomplished through branding and marketing Houston’s East End as an economically viable place to work, live and recreate. Visual and infrastructure improvements are realized with litter clean up and street enhancement projects, including the Livable Centers initiative, which will bring improvements to the pedestrian environment that address mobility, access to transportation, and public safety. Workforce Development includes education and training for East End workers and residents. As required by accounting principles generally accepted in the United States of America, these financial statements present the District and its component unit, East End Improvement Corporation (EEIC), an entity in which the District is considered to be financially accountable. The District is considered to be financially accountable for an organization if the District appoints the voting majority of that organization or there is a potential for that organization to provide specific financial benefit or impose specific financial burdens to the District. In certain cases, other organizations are included as component units if the nature and significance of their relationship with the District are such that their exclusion would cause the District’s financial statements to be misleading or incomplete. Blended component units, although legally separate entities, are, in substance, part of the District’s operations. EEIC was created under the provisions of the Texas Transportation Code and incorporated in the State of Texas on October 28, 2002 as a public, non-profit, local government corporation. EEIC is governed by a three member board of directors appointed by the District’s Board. Although EEIC is a legally separate, tax-exempt entity, EEIC is reported as if it were part of the District because its sole purpose is to lessen the burden of the District by allowing additional private funds to be used to expand and enhance the District’s programs. EEIC currently supplements the District’s security and public safety programs (Note 7). EEIC is reported as a special revenue fund within the District’s financial statements.


SEPTEMBER 30, 2014

- 19 -

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES The accompanying basic financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America as promulgated by the Governmental Accounting Standards Board (“GASB”). In addition, the accounting records of the District are maintained generally in accordance with the Water District Financial Management Guide published by the Texas Commission on Environmental Quality (the “Commission”). Financial Statement Presentation These financial statements have been prepared in accordance with Governmental Accounting Standards Board (GASB) Codification of Governmental Accounting and Financial Reporting Standards Part II, Financial Reporting. The financial statements include:

A Management’s Discussion and Analysis (MD&A) section providing an analysis of the District’s overall financial position and changes in financial position.

Government-wide financial statements prepared using the accrual basis of accounting for

all of the District’s governmental activities. GASB Codification sets forth standards for external financial reporting for all state and local government entities, which include a requirement for a Statement of Net Position and a Statement of Activities. It requires the classification of net position into three components: Net Investment in Capital Assets; Restricted; and Unrestricted. These classifications are defined as follows:

Net Investment in Capital Assets – This component of net position consists of capital assets, including restricted capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvements of those assets.

Restricted Net Position – This component of net position consists of external constraints

placed on the use of net assets imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulation of other governments or constraints imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position – This component of net position consists of net assets that do

not meet the definition of Restricted or Net Investment in Capital Assets.


SEPTEMBER 30, 2014

- 20 -

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Financial Statement Presentation (Continued) When both restricted and unrestricted resources are available for use, generally it is the District’s policy to use restricted resources first. Government-Wide Financial Statements The Statement of Net Position and the Statement of Activities display information about the District as a whole. The District’s Statement of Net Position and Statement of Activities are combined with the governmental fund financial statements. The District is viewed as a special- purpose government and has the option of combining these financial statements. The Statement of Net Position is reported by adjusting the governmental fund types to report on the full accrual basis, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. Any amounts recorded due to and due from other funds are eliminated in the Statement of Net Position. The Statement of Activities is reported by adjusting the governmental fund types to report only items related to current year revenues and expenditures. Items such as capital outlay are allocated over their estimated useful lives as depreciation expense. Internal activities between governmental funds, if any, are eliminated by adjustment to obtain net total revenues and expenses of the government-wide Statement of Activities. Fund Financial Statements As discussed above, the District’s fund financial statements are combined with the government-wide statements. The fund statements include a Balance Sheet and Statement of Revenues, Expenditures and Changes in Fund Balances. Governmental Funds The District has two major governmental funds. General Fund - To account for resources not required to be accounted for in another fund, assessment revenues, costs and general expenditures. Special Revenue Fund – The District’s blended component unit, East End Improvement Corporation (EEIC), is reported as a special revenue fund.


SEPTEMBER 30, 2014

- 21 -

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Accounting The District uses the modified accrual basis of accounting for governmental fund types. The modified accrual basis of accounting recognizes revenues when both “measurable and available.” Measurable means the amount can be determined. Available means collectable within the current period or soon enough thereafter to pay current liabilities. The District considers revenue reported in governmental funds to be available if they are collectable within 60 days after year end. Also, under the modified accrual basis of accounting, expenditures are recorded when the related fund liability is incurred, except for principal and interest on long-term debt, which are recognized as expenditures when payment is due. Assessments considered available by the District and included in revenue include assessments collected during the year and assessments collected after year-end, if any, which were considered available to defray the expenditures of the current year. Deferred assessment revenues are those assessments which the District does not reasonably expect to be collected soon enough in the subsequent period to finance current expenditures. Amounts transferred from one fund to another fund are reported as other financing sources or uses. Loans by one fund to another fund and amounts paid by one fund for another fund are reported as interfund receivables and payables in the Governmental Funds Balance Sheet if there is intent to repay the amount and if the debtor fund has the ability to repay the advance on a timely basis. Capital Assets Capital assets, which include equipment and land improvements, are reported in the government-wide Statement of Net Position. All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated assets are valued at their fair market value on the date donated. Repairs and maintenance are recorded as expenditures in the governmental fund incurred and as an expense in the government-wide Statement of Activities. Capital asset additions, improvements and preservation costs that extend the life of an asset are capitalized and depreciated over the estimated useful life of the asset. Interest costs, including developer interest, engineering fees and certain other costs are capitalized as part of the asset.


SEPTEMBER 30, 2014

- 22 -

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Assets (Continued) Assets are capitalized, including infrastructure assets, if they have an original cost greater than $500 and a useful life over two years. Depreciation is calculated on each class of depreciable property using the straight-line method of depreciation. Estimated useful lives are as follows:

Years

Vehicles 5 Equipment 3-5 Furniture 5 Land Improvements 10-30

Budgeting In compliance with governmental accounting principles, the Board of Directors annually adopts an unappropriated budget for the General Fund. The budget was not amended during the current fiscal year. Pensions The District has 16 full-time employees and 5 temporary full time employees and made contributions into a simplified employee pension plan for 11 of the 16 permanent employees who had 6 months of continuous work history from the date of hire. See Note 10. Measurement Focus Measurement focus is a term used to describe which transactions are recognized within the various financial statements. In the government-wide Statement of Net Position and Statement of Activities, the governmental activities are presented using the economic resources measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position, financial position, and cash flows. All assets and liabilities associated with the activities are reported. Fund equity is classified as net position. Governmental fund types are accounted for on a spending or financial flow measurement focus. Accordingly, only current assets and current liabilities are included on the Balance Sheet, and the reported fund balances provide an indication of available spendable or appropriable resources. Operating statements of governmental fund types report increases and decreases in available spendable resources. The District classifies fund balance in governmental funds using the following hierarchy:


SEPTEMBER 30, 2014

- 23 -

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Measurement Focus (Continued) Nonspendable: amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact. Restricted: amounts that can be spent only for specific purposes because of constitutional provisions, or enabling legislation, or because of constraints that are imposed externally. The District does not have any restricted fund balances. Committed: amounts that can be spent only for purposes determined by a formal action of the Board of Directors. The Board is the highest level of decision-making authority for the District. This action must be made no later than the end of the fiscal year. Commitments may be established, modified, or rescinded only through ordinances or resolutions approved by the Board. The District committed $656,532 for capital improvement projects, see Note 13. Assigned: amounts that do not meet the criteria to be classified as restricted or committed, but that are intended to be used for specific purposes. The District has not adopted a formal policy regarding the assignment of fund balances. The District has assigned funds in the amounts of $170,000, $150,000, $40,000 and $23,634 for budget stabilization, contingency reserve, vehicle replacement and TXDOT Streetscape Project, respectively. Unassigned: all other spendable amounts in the General Fund. When expenditures are incurred for which restricted, committed, assigned or unassigned fund balances are available, the District considers amounts to have been spent first out of restricted funds, then committed funds, then assigned funds, and finally unassigned funds. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.


SEPTEMBER 30, 2014

- 24 -

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES (Continued) Subsequent Events In preparing these financial statements, management has evaluated and disclosed all material subsequent events through February 26, 2015, which is the date these statements were available to be issued. NOTE 3. DEPOSITS AND INVESTMENTS Deposits Custodial credit risk is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover deposits or will not be able to recover collateral securities that are in the possession of an outside party. The District’s deposit policy for custodial credit risk requires compliance with the provisions of Texas statutes. Texas statutes require that any cash balance in any fund shall, to the extent not insured by the Federal Deposit Insurance Corporation or its successor, be continuously secured by a valid pledge to the District of securities eligible under the laws of Texas to secure the funds of the District, having an aggregate market value, including accrued interest, at all times equal to the uninsured cash balance in the fund to which such securities are pledged. At fiscal year-end, the carrying amount of the District’s deposits was $1,097,534 and the bank balance was $1,103,899. The bank balance was fully covered by federal depository insurance and pledged securities. The carrying values of the deposits are included in the Governmental Funds Balance Sheet and the Statement of Net Position at September 30, 2014, as listed below:

CashGENERAL FUND 1,041,095$

SPECIAL REVENUE FUND 56,439

TOTAL DEPOSITS 1,097,534$


SEPTEMBER 30, 2014

- 25 -

NOTE 3. DEPOSITS AND INVESTMENTS (Continued) Investments Under Texas law, the District is required to invest its funds under written investment policies that primarily emphasize safety of principal and liquidity and that address investment diversification, yield, maturity, and the quality and capability of investment management, and all District funds must be invested in accordance with the following investment objectives: understanding the suitability of the investment to the District’s financial requirements, first; preservation and safety of principal, second; liquidity, third; marketability of the investments if the need arises to liquidate the investment before maturity, fourth; diversification of the investment portfolio, fifth; and yield, sixth. The District’s investments must be made “with judgment and care, under prevailing circumstances, that a person of prudence, discretion, and intelligence would exercise in the management of the person’s own affairs, not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived.” No person may invest District funds without express written authority from the Board of Directors. Texas statutes include specifications for and limitations applicable to the District and its authority to purchase investments as defined in the Public Funds Investment Act. Authorized investments are summarized as follows: (1) obligations of the United States or its agencies and instrumentalities, (2) direct obligations of the State of Texas or its agencies and instrumentalities, (3) certain collateralized mortgage obligations, (4) other obligations, the principal of and interest on which are unconditionally guaranteed or insured by the State of Texas or the United States or its agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States, (5) certain A rated or higher obligations of states, agencies, counties, cities, and other political subdivisions of any state, (6) bonds issued, assumed or guaranteed by the State of Israel, (7) insured or collateralized certificates of deposit, (8) certain fully collateralized repurchase agreements secured by delivery, (9) certain bankers’ acceptances with limitations, (10) commercial paper rated A-1 or P-1 or higher and a maturity of 270 days or less, (11) no-load money market mutual funds and no-load mutual funds with limitations, (12) certain guaranteed investment contracts, (13) certain qualified governmental investment pools and (14) a qualified securities lending program. The District invests in TexPool, an external investment pool that is not SEC-registered. The State Comptroller of Public Accounts of the State of Texas has oversight of the pool. Federated Investors, Inc. manages the daily operations of the pool under a contract with the Comptroller. The fair value of the district’s position in the pool is the same as the value of the pool shares.


SEPTEMBER 30, 2014

- 26 -

NOTE 3. DEPOSITS AND INVESTMENTS (Continued) Investments (continued) As of September 30, 2014, the District had the following investments and maturities:

Fund and Less Than More ThanInvestment Type Fair Value 1 1-5 6-10 10

GENERAL FUND -TexPool 45,327$ 45,327$

Maturities in Years

Credit risk is the risk that the issuer or other counterparty to an investment will not fulfill its obligations. At September 30, 2014, the District’s investment in TexPool was rated AAA by Standard and Poor’s and had a weighted average maturity of 76 days. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The District considers the investment in TexPool to have a maturity of less than one year due to the fact the share position can usually be redeemed each day at the discretion of the District, unless there has been a significant change in value. Restrictions All cash and investment of the Special Revenue Funds are restricted for the EEIC operations. NOTE 4. ANNUAL ASSESSMENT In accordance with Chapter 3807, Texas Special Districts Local Laws Code, the District may levy ad valorem taxes, assessments, or impact fees in accordance with Chapter 375, Texas Local Government Code, to provide improvements and services for a project or activity the District is authorized to acquire, construct, improve, or provide under this Act.


SEPTEMBER 30, 2014

- 27 -

NOTE 4. ANNUAL ASSESSMENT (Continued) On September 30, 2004, the District approved the Greater East End Management District Service Plan (Plan). The Plan authorized levying an annual assessment which would assure sufficient funding for the services provided under the ten (10) year term of the Plan. The Plan provides for a maximum annual assessment rate of no more than $0.15 per $100 of assessed value of land and improvements within the District. For the 2013 tax year, the District levied an assessment of $0.15 per $100 of assessed values, which resulted in an assessment of $1,777,106 on the adjusted taxable valuation of $1,194,122,000. The General Fund recorded total revenue of $1,736,299 in the current fiscal year for 2013 and prior assessments collected during the fiscal year ending September 30, 2014. The District’s calendar for collection of the assessments is as follows: Levy Date - None Specified

Lien Date - January 1.

Due Date - Not later than January 31.

Delinquent Date - February 1, at which time the taxpayer is liable for penalty and interest.


SEPTEMBER 30, 2014

- 28 -

NOTE 5. CAPITAL ASSETS Capital asset activity for the year ended September 30, 2014 is as follows:

Beginning Balances Increases Decreases

Ending Balances

Capital Assets Subject to Depreciation

Furniture and Fixtures 56,528$ -$ -$ 56,528$ Vehicles 155,132 18,629 173,761 Equipment 44,388 41,962 86,350 Leasehold Improvement 20,604 20,604 Land Improvements 1,551,088 1,551,088

Total Capital Assets Subject to Depreciation 1,827,740$ 60,591$ -$ 1,888,331$

Less Accumulated DepreciationFurniture and Fixtures 47,764$ 3,780$ 51,544$ Vehicles 124,061 24,483 148,544 Equipment 27,779 7,779 35,558 Leasehold Improvement 1,359 520 1,879 Land Improvements 80,166 80,166 160,332

Total Accumulated Depreciation 281,129$ 116,728$ -$ 397,857$

Total Depreciable Capital Assets, Net of Accumulated Depreciation 1,546,611$ (56,137)$ -$ 1,490,474$

NOTE 6. HOUSTON EAST END STREETSCAPES PROJECT In January 2002, the Texas Department of Transportation (TXDOT) selected for funding the District’s $2.7 million East End Streetscapes Project (the Project). The Project includes enhancements to four major entryways into the District. The District will use revenues from current assessments and future assessments to fund the maintenance and upkeep of the Streetscape Project, as well as the Streetscape improvements along Harrisburg, Sampson, York and Navigation.


SEPTEMBER 30, 2014

- 29 -

NOTE 7. EAST END IMPROVEMENT CORPORATION EEIC was organized to provide additional resources to assist the District with its programs and acts as the conduit for funds from private and public entities in partnership with the District to provide law enforcement security patrols for its constituents. In FY 2014, EEIC contracted with Harris County (the County) for patrol services to provide additional security to the Gulfgate Shopping Center, the Central City Industrial Park, and other areas within the District boundaries. EEIC is reimbursed for the costs of the additional security patrols pursuant to the contracts with each entity. Payment to the County for the security patrol services, as well as the reimbursement payments from each entity to EEIC, occurs the month preceding the services rendered. NOTE 8. OPERATING LEASE On December 1, 2004, the District entered into a 60 month lease agreement for office space commencing on July 1, 2005. During the prior fiscal year, the District renewed the lease for 60 months ending December 31, 2015. On January 23, 2014, the lease was amended and extended for an additional five year term commencing on July 1, 2015. During the current fiscal year, the District made lease payments in the amount of $111,600. Future minimum lease payments under the operating lease are as follows.

Year EndingSeptember 30,

2015 111,600$ 2016 111,600 2017 111,600 2018 111,600 2019 111,600 2020 83,700

Total Base Future Lease Obligations 641,700$

NOTE 9. RISK MANAGEMENT

The District is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, and natural disasters. The District carries commercial insurance for its fidelity bonds and participates in the Texas Municipal League Intergovernmental Risk Pool (TML) to provide property, general liability, automobile, boiler and machinery, errors and omissions, workers compensation coverage and law enforcement. The District, along with other participating entities, contributes annual amounts determined by TML’s management. As claims arise they are submitted and paid by TML. There have been no significant reductions in coverage from the prior year and settlements have not exceeded coverage in the past three years.


SEPTEMBER 30, 2014

- 30 -

NOTE 10. RETIREMENT PLAN

On March 15, 2001, the District implemented a Simple Individual Retirement Account (IRA) to benefit the employees of the District. This retirement plan calls for the District to match up to 10% of each employee’s contribution based on employee gross wages. The accounts are set up in each participating employees name and are the property of the named employee. During the current year, the District’s share of costs associated with this plan were $56,656.

NOTE 11. FEDERAL TRANSIT ADMINISTRATION GRANTS

On April 9, 2010, the District was awarded a grant under the American Recovery & Reinvestment Act of 2009 (ARRA) from the Federal Transit Administration (FTA) in the amount of $5 million. The award was used to fund transportation projects that enhance pedestrian mobility, improve air quality, and provide safe and easy access to public transportation. The District has received total funding $3,417,193, which was used to fund the construction costs of sidewalk improvements along Navigation, York, and Sampson known as the Livable Centers Project. During the current fiscal year, the District expensed $914 in relation to this project. The District was reimbursed for $914 during the current year. The District is the sub-recipient for “New Freedom” grant funds through METRO in the amount of $2,115,601 over a three year period for Canal and Delano Street improvements. The District is required to provide matching funds in the amount of $532,010. In FY 2013, the District recorded expenditures $213,563 and was reimbursed $133,743. During the current fiscal year, the District recorded expenditures of $1,233,280, and has recorded reimbursements of $1,173,900, a portion of which was reimbursed for work completed in FY 2013. In addition, $105,972 of reimbursements relating the current fiscal year expenditures is recorded as a receivable in the Fund Financial Statements. The District was awarded a $250,000 “Alternative Analysis” grant to study the establishment of a streetcar system to connect from the District through the area east of downtown Houston to downtown Houston. In FY 2013, the District recorded expenditures $131,852 and was reimbursed $131,529. During the current fiscal year, the District recorded expenditures of $58,753, and has recorded reimbursements of $57,588. The District was awarded a $6,173,000 “Transportation Investment Generating Economic Recovery” reimbursable grant for capital investments for surface transportation infrastructure. In FY 2013, the District recorded expenditures $16,483 and was reimbursed $69,112. During the current fiscal year, the District recorded expenditures of $51,735, and has recorded reimbursements of $102,519, a portion of which was reimbursed for work completed in FY 2013.


SEPTEMBER 30, 2014

- 31 -

NOTE 11. FEDERAL TRANSIT ADMINISTRATION GRANTS The District is a sub-recipient of a “Transportation Improvement Program” grant through the Houston-Galveston Area Council in the amount of $724,200. The District will be required to provide $181,050 in matching funds. The objective of this grant is to support public transportation services in urbanized areas. The grant will be used for intersection improvements and new sidewalks and pedestrian and bike improvements in the District. During the current fiscal year, the District recorded $16,284 in expenditures and $16,284 in revenues. In addition, $128,556 of revenue relating to future year expenditures is recorded as deferred revenue in the Fund Financial Statements. NOTE 12. OTHER GRANTS The District received $2,000 in the current fiscal year from the Houston Galveston Area Council to provide assistance with community tree planting events. Houston Arts Alliance selected the District to receive the fiscal year 2013 Creative Economy Program grant in the amount of $100,000. The District received $50,000 in prior years. The amount of $25,000 was recognized as revenue in the Fund Financial Statements in the current fiscal year. The remaining $25,000 will be received in the future. NOTE 13. RESOLUTION ALLOCATING FUNDS

On August 19, 2010, the District approved the Resolution Allocating Funds for the Greater East End Management District. The District allocated $1,900,000 of the District’s funds for the Transit Improvements to be spent during the September 30, 2011, 2013, and 2014 fiscal years. The Transit Improvements consist of improvements to six intersections and up to 27 blocks of sidewalk and tree planting improvements, with the Transit Improvements to be installed in phases in conjunction with Metro’s construction of the light rail line. The District allocated $656,532 for capital improvement projects in the FY 2015 budget.


SEPTEMBER 30, 2014

- 32 -

NOTE 14. LETTER OF CREDIT AGREEMENT On January 8, 2013, the District entered into a loan agreement with Compass Bank, Houston, for a promissory note (the “Note”) for a maximum amount of $750,000. Under the terms of the loan agreement, the District may request advances and make payments from time to time. The unpaid balance of the loan will increase or decrease with each new advance or payment. Interest on the Note will be a) the maximum interest rate, as defined by the loan agreement or (b) a rate equal to the banks stated prime rate plus one percent, calculated on the basis of the actual days elapsed but computed as if each year consisted of 360 days. Each change in the interest rate charged on the Note is to become effective without notice to the District on the effective date of each change in the maximum rate, as the case may be. The Note was non-cancellable and was effective until January 28, 2014. Effective January 28, 2014 the loan agreement was amended to change the maturity date of the Note to January 28, 2015. All other terms of the loan agreement remain the same. The District did not borrow against the Note during the current fiscal year.


REQUIRED SUPPLEMENTARY INFORMATION

SEPTEMBER 30, 2014

- 34 -

Original and Final Budget Actual

Variance Positive (Negative)

REVENUESAssessment Revenues 1,700,000$ 1,736,299$ 36,299$ Graffiti Revenue 568,800 551,627 (17,173) Rent Revenues 25,224 25,224 Grant Revenues 2,021,648 1,484,174 (537,474) Penalty and Interest 25,344 25,344 Investment Revenues 2,215 1,847 (368) Other Revenues 70,000 11,445 (58,555)

TOTAL REVENUES 4,387,887$ 3,835,960$ (551,927)$

EXPENDITURESService Operations:

Security and Public Safety 621,304$ 593,959$ 27,345$ Marketing and Perception Enhancement 434,940 619,373 (184,433) Visual and Infrastructure Improvement and Services 659,932 431,549 228,383 Workforce Training 51,000 148 50,852 Program Support 768,551 756,289 12,262 Livable Center 2,190,911 1,718,653 472,258

Capital Outlay 60,591 (60,591) TOTAL EXPENDITURES 4,726,638$ 4,180,562$ 546,076$

NET CHANGE IN FUND BALANCE (338,751)$ (344,602)$ (5,851)$

FUND BALANCE - OCTOBER 1, 2013 1,405,401 1,405,401

FUND BALANCE - SEPTEMBER 30, 2014 1,066,650$ 1,060,799$ (5,851)$

GREATER EAST END MANAGEMENT DISTRICTSCHEDULE OF REVENUES, EXPENDITURES AND

AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL - GENERAL FUNDFOR THE YEAR ENDED SEPTEMBER 30, 2014

See accompanying independent auditor's report.


SUPPLEMENTARY INFORMATION – REQUIRED BY

GOVERNMENTAL AUDITING STANDARDS

SEPTEMBER 30, 2014





February 26, 2015 Board of Directors Greater East End Management District Harris County, Texas Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance

and Other Matters Based on an Audit of Financial Statement Performed in Accordance with Government Auditing Standards

Board of Directors: We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities and each major fund of Greater East Management District (“the District”) as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements, and have issued our report thereon dated February 26, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the District’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.


- 37 -

Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is intended solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. McCall Gibson Swedlund Barfoot PLLC Certified Public Accountants February 26, 2015





February 26, 2015 Board of Directors Greater East End Management District Harris County, Texas Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control

Over Compliance Required by OMB Circular A-133 Report on Compliance for Each Major Federal Program We have audited Greater East End Management District’s (the “District”) compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each the District’s major federal programs for the year ended September 30, 2014. The District’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the District’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the District’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of the District’s compliance with these requirements.


- 39 -

Opinion on Each Major Federal Program In our opinion, the District complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2014. Report on Internal Control Over Compliance Management of the District is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the District’s internal control over compliance with types of requirements that could have a direct and material effect on a major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that a material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. McCall Gibson Swedlund Barfoot PLLC Certified Public Accountants February 26, 2015

- 40 -

Federal Grantor/Pass-through Grantor/Program or Cluster Title

Federal CFDA

NumberLoan/Contract/Warrant Grant Award Number

Federal Expenditures

Department of Transportation:

Passed through Metropolitan Transit Authority

Federal Transit Administration New Freedom Grant/Department of Transportation 20.521 TX-57-80038 1,233,280$

Direct

Federal Transit Administration Alternative Analysis Grant 20.522 TX-39-0008 58,753

Program) American Recovery & Reinvestment Act Alternative Analysis Grant 20.507 TX-66-004 914

Passed through Houston Galveston Area Council

Federal Transit Grants (Urbanized Area Formula Program) Transportation Improvement Program (TIP) 20.507 TX-95-X075-00 16,284

Department of Transportation:

Passed through City of Houston

Federal Highway Administration Transportation Investment Generating Economic Recovery (TIGER) 20.933 DTFH61-13-G-00004 51,735

Total Expenditures of Federal Awards 1,360,966$

GREATER EAST END MANAGEMENT DISTRICTSCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


GREATER EAST END MANAGEMENT DISTRICT NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS


- 41 -

NOTE 1. BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards included the federal grant activity of the District and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. Therefore, some amounts presented in or this schedule may differ from amounts presented in or used in the preparation of the basic financial statements. NOTE 2. FEDERAL TRANSIT ADMINISTRATION GRANTS On April 9, 2010, the District was awarded a grant under the American Recovery & Reinvestment Act (ARRA) from the Federal Transit Administration (FTA) in the amount of $5 million. The award was used to fund transportation projects that enhance pedestrian mobility, improve air quality, and provide safe and easy access to public transportation. The District has received total funding of $3,417,193, which was used to fund the construction costs of sidewalk improvements along Navigation, York, and Sampson, known as the Livable Centers Project. During the current fiscal year, the District expensed $914 in relation to this project. The District was reimbursed for $914 during the current fiscal year. The District is the sub-recipient for “New Freedom” grant funds through METRO in the amount of $2,115,601 over a three year period for Canal and Delano Street improvements. The District is required to provide matching funds in the amount of $532,010. During the current fiscal year, the District expensed $1,233,280 and was reimbursed $1,173,900, a portion of which was reimbursed for work performed in the prior fiscal year. The District was awarded a $250,000 “Alternative Analysis” grant to study the establishment of a streetcar system to connect from the District through the area east of downtown Houston to downtown Houston. During the current fiscal year, the District expensed $58,753 and was reimbursed $57,588. The District was awarded a $6,173,000 “Transportation Investment Generating Economic Recovery” reimbursable grant for capital investments for surface transportation infrastructure. During the current fiscal year, the District expensed $51,735 and was reimbursed $102,519, a portion of which was reimbursed for work completed in the prior fiscal year. The District is the sub-recipient of a “Transportation Improvement Program” grant through the Houston-Galveston Area Council in the amount of $724,200 to support public transportation services in urbanized areas, which will be used for intersection improvements, new sidewalks, pedestrian, and bike improvements in the District. The District is required to provide $181,050 in matching funds. During the current fiscal year, the District expensed $16,284 and received advanced funding in the amount of $144,840.

GREATER EAST END MANAGEMENT DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS


- 42 -

Section I — Summary of Auditor’s Results

Financial Statements

Type of auditor’s report issued: Unmodified

Internal control over financial reporting:

Material weakness(es) identified? yes X no

Significant Deficiencies(s) identified

that are not considered to be

material weaknesses? yes X None reported

Noncompliance material to financial

statements noted? yes X no

Federal Awards

Internal control over major programs:

Material weakness(es) identified? yes X no

Significant Deficiencies(s) identified

that are not considered to be material

weakness(es)? yes X None reported

Type of auditor’s report issued on compliance for major programs: Unmodified

Any audit findings disclosed that are required to be reported in accordance

with section 510(a) of Circular A-133 yes X no

GREATER EAST END MANAGEMENT DISTRICT SCHEDULE OF FINDINGS AND QUESTIONED COSTS


- 43 -

Identification of major programs:

CFDA Number(s) Name of Federal Program or Cluster

20.521 U.S. Department of Transportation Federal Transit Administration New Freedom Grant

Dollar threshold used to distinguish

between type A and type B programs: $300,000

Audited Qualified as low-risk auditee? X yes no

Section II — Financial Statement Findings

None

Section III— Federal Award Findings and Questioned Costs

None

GREATER EAST END MANAGEMENT DISTRICT SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS


- 44 -

None


SUPPLEMENTARY INFORMATION – REQUIRED BY THE

WATER DISTRICT FINANCIAL MANAGEMENT GUIDE

SEPTEMBER 30, 2014

See accompanying independent auditor’s report.

- 46 -

PERSONNEL (Including Benefits) 761,679$

PROFESSIONAL FEES:Legal 69,109Auditing 14,250

TOTAL PROFESSIONAL FEES 83,359$

PURCHASED SERVICES:Security and Public Safety 343,125$ Marketing and Perception Enhancement 602,066Visual and Infrastructure Improvements and Services 341,582Workforce Training 148Livable Center 1,700,846

TOTAL PURCHASED SERVICES 2,987,767$

CONTRACTED SERVICES:Bookkeeping 44,198$ Tax Assessor Collector 4,143

TOTAL CONTRACTED SERVICES 48,341$

UTILITIES 17,667$

REPAIRS AND MAINTENANCE 38,942$

ADMINISTRATIVE EXPENDITURES:Dues 1,592

Equipment Rent 9,643Insurance 20,106Janitorial Services 9,784Notice of Public Hearing 5,211Office Security 2,649Office Supplies and Postage 10,507Personnel Services 95Rent 111,600Travel 2,147Other 8,882

TOTAL ADMINSTRATIVE EXPENDITURES 182,216$

CAPITAL OUTLAY 60,591$

TOTAL EXPENDITURES 4,180,562$

Number of persons employed by the District 16 Full-Time 5 Temporary Full-Time

GREATER EAST END MANAGEMENT DISTRICTGENERAL FUND EXPENDITURES



- 47 -

Funds

Identification or Certificate

NumberInterest

RateMaturity

Date

Balance at End of

Year

Accrued Interest

Receivable at End of

YearGENERAL FUND

TexPool XXXX0001 Variable N/A 45,327$ -$

GREATER EAST END MANAGEMENT DISTRICTINVESTMENTS



- 48 -

ASSESSMENTS RECEIVABLE - OCTOBER 1, 2013 100,940$ Adjustments to beginning balance (15,207) 85,733$

Original 2013 Assessments Levy 1,791,183$ Adjustments to 2013 Assessments Levy (14,077) 1,777,106$

TOTAL TO BE ACCOUNTED FOR 1,862,839$

ASSESSMENT COLLECTIONS:Prior Years 31,315$ Current Year 1,725,993 1,757,308$

ASSESSMENTS RECEIVABLE - September 30, 2014 105,531$

ASSESSMENTS RECEIVABLE BY YEAR:2013 51,113$ 2012 12,763 2011 14,320 2010 4,442 2009 3,437 2008 3,111 2007 2,515

2006 2,312 2005 2,104 2004 1,869 2003 1,870 2002 1,510 2001 1,473 2000 1,304 1999 1,388

105,531$

ASSESSMENTS LEVIED AND RECEIVABLEFOR THE YEAR ENDED SEPTEMBER 30, 2014


Assessments


- 49 -

2014 2013 2012 2011 2010REVENUES

Assessment Revenues 1,736,299$ 1,672,551$ 1,502,786$ 1,581,430$ 1,621,199$ Graffiti Revenues 551,627 564,319 551,601 475,686 362,918 Grant Funding Revenue 1,484,174 3,831,313 1,481,753 533,516 East End Forum Revenue 25,335 3,385 11,205 Rent Revenues 25,224 24,619 21,245 Penalty and Interest 25,344 34,659 5,626 14,823 53,002 Investment Revenues 1,847 2,472 17,820 39,367 27,104 Other Revenues 11,445 49,818 18,037

TOTAL REVENUES 3,835,960$ 6,179,751$ 3,606,166$ 2,666,244$ 2,075,428$

EXPENDITURESService Operations:

Security and Public Safety 593,959$ 675,414$ 604,419$ 606,887$ 327,252$ Marketing and Perception Enhancement 619,373 269,035 86,091 132,683 125,866 Visual and Infrastructure Improvements and Services 431,549 505,205 398,164 363,918 381,519 Workforce Training 148 48,099 45,080 45,042 61,597 Program Support 756,289 779,282 735,060 692,486 672,610 Livable Center 1,718,653 3,924,522 2,073,476 1,524,022 220,035 Capital Outlay 60,591 99,487 11,838

TOTAL EXPENDITURES 4,180,562$ 6,201,557$ 3,942,290$ 3,464,525$ 1,800,717$

NET CHANGE IN FUND BALANCE (344,602)$ (21,806)$ (336,124)$ (798,281)$ 274,711$

PRIOR PERIOD ADJUSTMENT 178,034

BEGINNING FUND BALANCE 1,405,401 1,249,173 1,585,297 2,383,578 2,108,867

ENDING FUND BALANCE 1,060,799$ 1,405,401$ 1,249,173$ 1,585,297$ 2,383,578$


AmountsGENERAL FUND - FIVE YEARS

COMPARATIVE SCHEDULE OF REVENUES AND EXPENDITURES


- 50 -

2014 2013 2012 2011 2010

45.3% 27.1% 41.7% 59.3% 78.1%14.4% 9.1% 15.3% 17.8% 17.5%38.7% 62.0% 41.1% 20.0%

0.7% 0.1% 0.5%0.7% 0.4% 0.6%0.7% 0.6% 0.2% 0.6% 2.6%

0.0% 0.5% 1.5% 1.3%0.3% 0.8% 0.7%

100.0% 100.0% 100.0% 100.0% 100.0%

15.5% 10.9% 16.8% 22.8% 15.8%16.1% 4.4% 2.4% 5.0% 6.1%

11.3% 8.2% 11.0% 13.6% 18.4%0.8% 1.3% 1.7% 3.0%

19.7% 12.6% 20.4% 26.0% 32.4%44.8% 63.5% 57.5% 57.2% 10.6%

1.6% 3.7% 0.6%

109.0% 100.4% 109.3% 129.9% 86.8%

(9.0)% (0.4)% (9.3)% (29.9)% 13.2%

Percent of Total Revenues


- 51 -

District Mailing Address - Greater East End Management DistrictP.O. Box 230099Houston, TX 77223

District Telephone Number - (713) 928-9916

Board Members

Term of Office

(Appointed) TitleMary Margaret Hanson 06/13 $ -0- $ -0- Position 1

06/17(Appointed)

Blanca Blanco 05/14 $ -0- $ -0- Position 206/17

(Appointed)

Sally Lehr 06/13 $ -0- $ -0- Position 306/17

(Appointed)

William McConnell 04/14 $ -0- $ -0- Position 406/17

(Appointed)

Domenic Laurenzo 03/14 $ -0- $ -0- Position 506/17

(Appointed)

Karen Niemeier 03/14 $ -0- $ -0- Position 606/17 Assistant

(Appointed) Secretary

GREATER EAST END MANAGEMENT DISTRICTBOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS

SEPTERMBER 30, 2014

Expense Reimbursements for

the year ended September 30, 2014

Fees of Office for the year ended

September 30, 2014


- 52 -

Board Members

Term of Office

(Appointed) TitleErin Dyer 04/14 $ -0- $ -0- Position 7

06/17(Appointed)

Bolivar Fraga 06/11 $ -0- $ -0- Position 806/15 Secretary

(Appointed)

Nory Angel 02/12 $ -0- $ -0- Position 906/15 Vice

(Appointed) Chair

Dr. Daniel Jenkins 06/11 $ -0- $ -0- Position 1006/15

(Appointed)

Taryn Sims 02/12 $ -0- $ -0- Position 1106/15 Chair

(Appointed)

R.D. Tanner 02/12 $ -0- $ -0- Position 1206/15

(Appointed)

Craig Rhoden 12/12 $ -0- $ -0- Position 1306/15 Treasurer

(Appointed)

Marjorie Pena 06/11 $ -0- $ -0- Position 1406/15

(Appointed)

Leo Vasquez 02/14 $ -0- $ -0- Position 1506/15

(Appointed)

Note: Submission date of the most recent District Registration Form (TWC Sections 36.054 and 49.054)


Fees of Office for the year ended

September 30, 2014

Expense Reimbursements for

the year ended September 30, 2014

September 25, 2014

BOARD MEMBERS, KEY PERSONNEL AND CONSULTANTSSEPTERMBER 30, 2014


- 53 -

Consultants: Date Hired TitleJeannie H. McDonald, P.C. 12/14/99 $ 43,221 $ -0- AttorneyAttorneys at Law2727 Plaza Drive, Suite 280Sugar Land, TX 77479

McCall Gibson Swedlund Barfoot PLLC 10/04/07 $ 14,250 $ -0- Auditor13100 Wortham Center Drive, Suite 235Houston, TX 77002

McGrath & Co., PLLC 10/01/11 $ 47,750 $ -0- BookkeeperP.O. Box 270148Houston, TX 77277

Linebarger Goggan Blair & Sampson, LLP 02/01/99 $ 10,228 $ -0- Delinquent1301 Travis Street, Suite 300 TaxHouston, TX 77002 Collector

Harris County Tax Assessor Collector 01/19/00 $ 4,143 $ -0- Tax1001 Preston, Suite 300 Assessor/Houston, TX 77002 Collector

Patrick Ezzell/Coastal Builders 04/05/10 $ 471,628 $ -0- Federal503 Avondale Funds ProjectHouston, TX 77006 Manager

District Fees for the year ended September 30,

2014

EEIC Fees for the year ended September 30,

2014

GREATER EAST END MANAGEMENT DISTRICTBOARD MEMBERS, KEY PERSONNEL AND CONSULTANTS

SEPTERMBER 30, 2014

greater east end management district...september 30, 2014 t a b l e o f c o n t e n t s page...

Documents