HomeMy WebLinkAboutContract 48167-AD3 weaver Ccc ET pY
Assuronce•Tax•Advisory
February 1, 2021 `
David Cooke, City Manager
City of Fort Worth, Texas
200 Texas Street
Fort Worth,TX 76102
Dear Mr. Cooke:
This letter sets forth our understanding for applying agreed-upon procedures to certain regulations of the
Texas Commission of Environmental Quality (TCEQ) applicable to the City of Fort Worth (the City) as of
and for the period ended September 30, 2020.
This engagement is solely for the purpose of reporting our findings in regards to the results of the
procedures performed as compared to the Texas Administrative Code Title 30, Chapter 37, Rule 37.271
(TAC).The procedures we will perform have been agreed to by the TCEQ and the City.
This engagement letter accompanies Contract 48167, as amended by 48671-R 1 A 1 and renewed by
48617-R2 (collectively,the Contract) and outlines updated and restated terms and standards of ur firm's
agreed upon procedures and audit services as of and for the year ended September 30, 2020. If there is
any conflict in this engagement letter and the terms of the Contract, the terms of the Contract shall
prevail over the terms of this engagement letter.
Our Responsibilities
We will apply the following procedures:
1) We will obtain and read the City's audited financial statements for the year ended
September 30,2020 and perform the following:
a. We will note whether the City's financial statements for the fiscal year were audite by an
independent certified public accountant and whether the auditors' report on the f nancial
statements was an unmodified opinion.
b. We will calculate the difference between the total annual revenues [total gover mental
funds revenues plus enterprise funds operating revenues plus enterprise funds non-operating
revenues (net) plus internal service funds non-operating revenues (net)] and total annual
expenditures [total governmental funds expenditures, other than capital proje t funds
expenditures, plus enterprise funds operating expenses before depreciation plus e terprise
funds non-operating expenses (net) plus internal service funds non-operating e1penses
(net)] as defined in section 37.271 (1)(D) of the Texas Administrative Code for the fis al year
ended September 30, 2020 and note whether the City operated at a deficit (total annual
revenues minus total annual expenditures) equal to 5.0% or more of total annual revenues
for the fiscal year ended September 30, 2020.
c. We will reconcile the amount included in item 4 in the caption Bond Rating Indi-ator of
Financial Strength in the letter from Reginald Zeno, Chief Financial Officer, of ihe City
accompanying our report (the Letter) with the corresponding amounts in the oudited
financial statements of the City as of and for the year ended September 30, 2020 and note
whether such amounts are in agreement.
d. We will reconcile the amount included in items 1 and 3 in the caption Bond Rating Indicator
of Financial Strength in the Letter referred to above with the corresponding amounts in the
audited financial statements of the City as of and for the year ended September 30, 2020
and note whether such amounts are in agreement.
Weaver and Tidw II, L.L.P.
r OFV-0AL RECORD 2821 West 7th Street,Suite 700 1 Fort Worth,Tex s 76107
C01V SECRETARY '1 Main:817. 32.7905
CPAs AND ADVISORS I WEAV R.COM
City of Fort Worth,Texas
February 1, 2021
Page 2
e. We will recompute from the audited financial statements amounts above, or will r concile
thereto, the information included in item 5 in the Bond Rating Indicator of Financial trength
in the Letter referred to above and note whether such items are in agreement.
f. We will read the financial statements and note whether the City was not in defa It on its
general obligation bonds.We will obtain copies of letters issued by rating agencies and note
whether the City's general obligation bonds had a current rating of BBB or highel by the
Standard and Poors' and Baa or higher as issued by Moody's.
g. We will note whether the City did not receive an adverse opinion, disclaimer of opinion, or
other modified opinion from the independent auditor auditing its financial statements for the
fiscal year ended September 30, 2020.
We will conduct our engagement in accordance with the attestation standards for agre d-upon
procedures engagements of the American Institute of Certified Public Accountants and, the standards
applicable to attestation engagements contained in Government Auditing Standards issued by the
Comptroller General of the United States. We are responsible for carrying out the procedures and
reporting findings in accordance with these standards. The sufficiency of these procedures is solely the
responsibility of the specified parties. Consequently, we make no representation as to the sufficiency of
these procedures for the purposes of the specified parties or for any other purpose.
The agreed-upon procedures to be performed do not constitute an examination or review of the subject
matter.Accordingly,we will not express an opinion or conclusion on the subject matter. If we did Derform
additional procedures, other matters might come to our attention that would be reported to you.
Your Responsibilities
With respect to any nonattest services we may provide, the City's management is responsibl for (a)
making all management decisions and performing all management functions; (b) assigning a co petent
individual, preferably within senior management, to oversee the services; (c) evaluating the adequacy
of the services performed; (d) evaluating and accepting responsibility for the results of the services
performed;and (e) establishing and maintaining internal controls,including monitoring ongoing activities.
As part of our engagement, we will request from management written confirmation co cerning
representations made to us in connection with the agreed upon procedures.
Engagement Fees
Our fees for our agreed upon procedures are included in cost for the audit of the City's f nancial
statements for the year ended September 30,2020.
Our engagement fees do not include any time for post-engagement consultation with your personnel or
third parties, consent letters and related procedures for the use of our reports in offering doc ments,
inquiries from regulators or testimony or deposition regarding any subpoena. Charges for such ervices
will be billed separately.
Our engagement fees do not include consulting on the adoption of new accounting standards dind any
increased duties because of any future regulatory body or an unknown or unplanned significant
transaction.We will consult with you in the event any of these take place that may affect our fe s.
City of Fort Worth, Texas
February 1, 2021
Page 3
Our Report and Other Relevant Information
Our report will list the procedures performed and our findings. Our report will be addressed to the City and
will be intended for use by and restricted to the use of the specified parties as identified above.OL r report
will contain such restricted-use language.
Should we have any reservations with respect to the subject matter,we will discuss them with yoL, before
the report is issued.
We have no responsibility to update our report for events and circumstances occurring after the date of
our report.
During the course of our engagement, we will request information and explanations from management
regarding the City's operations, future plans, specific transactions and accounting syste�s and
procedures. At the conclusion of our engagement, we will require, as a precondition to the issuance of
our report, that management provide certain representations in a written representation letter. The City
agrees that as a condition of our engagement that management will, to the best of its knowledge and
belief, be truthful, accurate, and complete in all representations made to us during the course of the
engagement and in the written representation letter. The procedures we perform in our engagement
and the conclusions we reach as a basis for our report will be heavily influenced by the written and oral
representations that we receive from management. False or misleading representations could cause us
to expend unnecessary efforts in our engagement; or, worse, could cause a material error or a raud to
go undetected by our procedures.
In the unlikely event that circumstances occur which we in our sole discretion believe could reate a
conflict with either the ethical standards of our firm or the ethical standards of our profession in co tinuing
our engagement,we may suspend our services until a satisfactory resolution can be achieved of e may
resign from the engagement. We will notify you of such conflict as soon as practicable, and wil discuss
with you any possible means of resolving them prior to suspending our services.
The hiring of or potential employment discussions with any of our personnel could impair our
independence. Accordingly, you agree to inform the engagement partner prior to any such potential
employment discussions taking place.
During the course of the engagement, we may communicate with you or with your personnel via fax or
e-mail, and you should be aware that communication in those mediums contains a risk of misdir cted or
intercepted communications.
Mr. Kevin Sanford is the engagement partner for the services specified in this letter. His respo sibilities
include supervising the engagement and signing the report or authorizing another individual to s gn it.
We plan to begin our procedures in December 2020, and unless unforeseeable problems are
encountered, the engagement should be completed by February 2021.
We look forward to a continued relationship with your organization, and we are available to discuss the
contents of this letter or other professional services you may desire.
City of Fort Worth,Texas
February 1, 2021
Page 4
Please sign and return the attached copy of this letter to indicate your acknowledgment f, and
agreement with, the arrangements for our engagement including our respective responsibilitie . If you
have any questions, please let us know.
lt/ Pal a4 ,
WEAVER AND TIDWELL, L.L.P.
RESPONSE:
This letter correctly sets forth our understanding.
Acknowledged and agreed on behalf of City of Fort Worth by:
By:
Printed Name: David Cooke
Title: City Manager
Date:
APPROVED AS TO FORM AND LEGALITY:
By: S C 4c
Assistant City Attorney
Approval: NA
Contract Compliance Manager:
By signing, I acknowledge that I am the person
responsible for the monitoring and administration
of this contract, including ensuring all performance
and reporting requirements.
Printed Name: Assistant Finance Director
Title: !n/1 j/ G'1q go-JI)CO v
ATTEST: ,. -^ --_
LFTWORTH,
rEC®R
By: ��'' RE�°A� '
Mary J. Kayser ,� e T�SCity Secretar