upr000104 44

RK.nuCfXQM&. AS Ft^VI'JSD IfliDEh SgCTIOfl 10 Of AartSl-m KT— EXHID1T A. PACE $ 8 6 3 .7 1 0 4 0 1 Th* major iten of deletion from the baeic purchase price aim the construction advance subject to refvml totalling 863^,911.92 « »t June 30, 195U, are to be assumed by the District. Change* in this total since September 1, 1952 « e sum­marised cm Exhibit C attached. Construction advances subject to refund mere substantiated as to their origin­al amount, by a detail*! examination of contracts on file. Addition, aince FepUm-ber l, 1952 sere traced to addition, to the property accounts, deduction*, based on sharing of eater revenues, were verified by test-check of the computation of refundable revenues, and inspection of disbursement records. HeUrements of water facilities since September 1, 1952 totaled $2,1^0.61, lees depreciation reserves of 82,078.60, or a net reduction of *382.01. reductions on materials and supplies and miscellaneous shop equipment einoo fepteaber 1, 1952 totaled * 6 ,1 * 8 0 .3 6 , as set forth on axfaibit A . A physical inven­tory of materials sad supplies was taken on July 1# 195U. Representatives of Sellers accompanied our representatives in observing the taking of the inventory and, tnssri on such observation, adjustments ware made, excluding damaged and ctoao-lote or unusable material from the inventory. The materials and supplies are priced et actual cost, which, in the aggregate, is loos than replacement coat at Juno 30, 1951*» ,j Advance payments by customers war# comeented upon in a previous section of this report. The District, in accordance with the terns of the agreement with feller*, de­posited a r a o f 82,1*75,01*6.18 in escrow pending f l » l determination of the pur-chase prtoo, representing $2,299,029M *• the preliminary purchase pries and $176,016.51* as the purchase price adjustment fund. C O N W ^ MOE, HlBBS & FUNSTON **