HomeMy WebLinkAboutContract 48167-AD1 Cr,Y SECREP�ARY`'
weaver>P,- - "'4A -TNo. _�O 4((0�-_��
Assumme•Tax•AcWv,
January 21,2021
David Cooke, City Manager
City of Fort Worth,Texas
200 Texas Street
Fort Worth,TX 76102
Dear Mr. Cooke:
Incorporation of a Pre-existing Contract
In 2016, the City of Fort Worth Texas (the "City", "you", and "you") and Weaver and Tidw Il, L.L.P.
"Weaver", "our", "us", and "we") entered into a contract for audit services, the same being Fort Worth
City Secretary Contract No. 48167 (the "Agreement" or "48167"). The contract was amended and
renewed on May 14, 2019 by execution of the First Renewal of and Amendment to Fort Worth City
Secretary Contract No.48167 for Audit Services ("48167-R1 Al"). On August 4,2020, the City and Weaver
again renewed the Agreement, as amended by 48167-R1A1, by entering into the Second Rer ewal of
Fort Worth City Secretary Contract No. 48167 for Audit Services (the "Second Renewal" or "48167-R2").
The term of the Second Renewal began on August 4, 2020 and is set to expire on August 3, 20211, unless
terminated earlier in accordance with the provisions of the Agreement.
This engagement letter accompanies the Agreement, as amended by 48167-RlAl and renewed by
48167-R2, and outlines updated and restated terms and standards of our firm's audit services as of and
for the year ended September 30, 2020. If there is any conflict between this engagement letter Pnd the
Agreement or Second Renewal, the terms of the Agreement and Second Renewal shall prevail Over the
terms of the engagement letter.
Acceptance and Understanding of the Engagement
You have requested that we audit the governmental activities,the business-type activities,the aggregate
discretely presented component units,each major fund, and the aggregate remaining fund inf rmation
of City of Fort Worth, Texas (the "City"), as of September 30, 2020, and for the year then ended cind the
related notes to the financial statements,which collectively comprise the City's basic financial statements
as listed in the table of contents. In addition,we will audit the City's compliance over major federal and
state award programs for the period ended September 30,2020.
Accounting principles generally accepted in the United States of America ("U.S.GAAP"),as promulgated
by the Governmental Accounting Standards Board ("GASB") require that management's discus ion and
analysis and budgetary comparison information, among other items, be presented to suppleryient the
basic financial statements. Such information, although not a part of the basic financial stater ients, is
required by GASB, which considers it to be an essential part of financial reporting for placing ff e basic
financial statements in an appropriate operational, economic, or historical context. As par of our
engagement,we will apply certain limited procedures to the required supplementary information ("RSI")
in accordance with auditing standards generally accepted in the United States of America ("U.S.GAAS").
These limited procedures will consist primarily of inquiries of management regarding their me hods of
measurement and presentation, and comparing the information for consistency with management's
responses to our inquiries.We will not express an opinion or provide any form of assurance on the RSI.The
following RSI is required by U.S. GAAP.This RSI will be subjected to certain limited procedures but will not
be audited: a
Weaver and Ticl\rll, L.L.P.
CPAs AND ADVISORS I WEAVtR.COM
Mr. Cooke
City of Fort Worth
January 21, 2021
Page 2 of 9
1. Management's Discussion and Analysis
2. Budgetary Comparison Schedule-General Fund
3. Notes to Required Supplementary Information
4. Employees' Retirement Fund-Schedule of Contributions to the Retirement Fund- Last Ten Fiscal
Years
5. Employees' Retirement Fund-Schedule of Changes in Net Pension Liability-Last Ten Fiscal Years
6. Other Postemployment Benefits-Schedule of Changes in Net OPEB Liability-Last Ten Fiscal Years
Supplementary information other than RSI will accompany the City's basic financial statements We will
subject the following supplementary information to the auditing procedures applied in our audit of the
basic financial statements and perform certain additional procedures, including compari g and
reconciling the supplementary information to the underlying accounting and other records lused to
prepare the basic financial statements or to the basic financial statements themselves, and additional
procedures in accordance with U.S. GAAS. We intend to provide an opinion on the f Ilowing
supplementary information in relation to the financial statements as a whole:
1. Schedule of Expenditures of Federal and State Awards
2. Schedule of Revenues, Expenses, and Changes in Net Position- Enterprise Funds
3. Combining and Individual Fund Financial Statements and Schedules
Also, the document we submit to you will include the following other additional information tha will not
be subjected to the auditing procedures applied in our audit of the basic financial statements:
1. Introductory Section
2. Statistical Section
We are pleased to confirm our acceptance and our understanding of this audit engagement by means
of this letter.
Audit Objectives
The objective of our audit is the expression of opinions as to whether your basic financial statem nts are
fairly presented, in all material aspects, in conformity with U.S. GAAP and to report on the faime s of the
supplementary information referred to above when considered in relation to the basic fnancial
statements as a whole. The objective also includes reporting on internal control related tote basic
financial statements and compliance with the provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a material effect on the basic financial sta ements
in accordance with Government Auditing Standards issued by the Comptroller General of the United
States of America ("GAGAS"); and internal control over compliance related to major programs and an
opinion (or disclaimer of opinion) on compliance with federal statutes, regulations, and the terms and
conditions of federal and state awards that could have a direct and material effect on each major
program in accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requi ements
for Federal Awards (Uniform Guidance) and Texas Uniform Grant Management Standards (UGM ).
Mr. Cooke
City of Fort Worth
January 21, 2021
Page 3 of 9
Auditor Responsibilities
We will conduct our audit in accordance with U.S. GAAS, the standards applicable to financic I audits
contained in GAGAS, and the provisions of the Uniform Guidance and UGMS. Those standards, the
Uniform Guidance and UGMS require that we plan and perform the audit to obtain reasonable assurance
about whether the basic financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the basic financial statements.The procedures selected depend on the auditor's judgment,including the
assessment of the risks of material misstatement of the basic financial statements, whether due to error,
fraudulent financial reporting, misappropriation of assets, or violations of laws, governmental regulations,
grant agreements, or contractual agreements. 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. If app> priate,
our procedures will therefore include tests of documentary evidence that support the trari actions
recorded in the accounts, tests of the physical existence of assets, and direct confirmation f cash,
investments, and certain other assets and liabilities by correspondence with creditors and financial
institutions. As part of our audit process,we may request written representations from your attorneys, and
they may bill you for responding. At the conclusion of our audit, we will also request certain written
representations from you about the basic financial statements and related matters.
Because of the inherent limitations of an audit, together with the inherent limitations of internal control,
an unavoidable risk that some material misstatements or noncompliance (whether caused bV errors,
fraudulent financial reporting, misappropriation of assets, or violations of laws or goverrimental
regulations) may not be detected exists, even though the audit is properly planned and performed in
accordance with U.S. GAAS and GAGAS.
In addition, an audit is not designed to detect immaterial misstatements or violations of laws or
governmental regulations that do not have a direct and material effect on the basic financial start ments.
However,we will inform the appropriate level of management of any material errors,fraudulent financial
reporting, or misappropriation of assets that comes to our attention. We will also inform the app opriate
level of management of any violations of laws or governmental regulations that come to our attention,
unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit
and does not extend to any later periods for which we are not engaged as auditors.
In making our risk assessments, we consider internal control relevant to the City's preparation :ind fair
presentation of the basic financial statements in order to design audit procedures that are lopp,opriafe
in the circumstances but not for the purpose of expressing an opinion on the effectiveness oft e City's
internal control. However, we will communicate to you in writing concerning any significant deficiencies
or material weaknesses in internal control relevant to the audit of the basic financial statements that we
have identified during the audit.
During the course of the audit we may observe opportunities for economy in, or improved contr Is over,
your operations. We will bring such matters to the attention of the appropriate level of mana ement,
either orally or in writing.
Mr. Kevin Sanford is the engagement partner for the audit services specified in this letter,and is responsible
for supervising our services performed as part of this engagement and signing or authorizing nother
qualified firm representative to sign the audit report.
Mr. Cooke
City of Fort Worth
January 21, 2021
Page 4 of 9
We may from time to time, and depending on the circumstances, use third-party service pro iders in
performing this engagement. We may share confidential information about you with these service
providers, but remain committed to maintaining the confidentiality and security of your information.
Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of
your personal information. In addition,we will secure confidentiality agreements with all service providers
to maintain the confidentiality of your information and we will take reasonable precautions to d termine
that they have appropriate procedures in place to prevent the unauthorized release of your con idential
information to others. In the event that we are unable to secure an appropriate confid ntiality
agreement,you will be asked to provide your consent prior to the sharing of your confidential inf mation
with the third-party service provider. Furthermore,we will remain responsible for the work providec by any
such third-party service provider.
We expect to begin our audit procedures in August 2020, and issue our report in February 2021 We will
issue a written report upon completion of our audit of the City's basic financial statements.Our report will
be addressed to the Honorable Mayor and City Council Members of the City. We cannot provide
assurance that unmodified opinions will be expressed. Circumstances may arise in which it is n cessary
for us to modify our opinions, add an emphasis-of-matter or other-matter paragraph(s), or withdraw from
the engagement. If our opinions on the financial statements or compliance are other than un odified,
we will discuss the reasons with you in advance. If, for any reason,we are unable to complete the audit
or are unable to form or have not formed opinions, we may decline to express opinions or withdr w from
this engagement.
As part of obtaining reasonable assurance about whether the basic financial statements are free of
material misstatement, we will perform tests of the City's compliance with certain provisions of laws,
regulations, contracts, and grants that could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with the provisions i3 not an
objective of our audit, and accordingly, we will not express such an opinion.
Our audit of the City's major federal and state award program(s) compliance will be condL cted in
accordance with the requirements of the Single Audit Act,as amended;and the provisions of the Uniform
Guidance and UGMS; and will include tests of accounting records, a determination of major pro Irams in
accordance with the Uniform Guidance and UGMS, and other procedures we consider necessary to
enable us to express such an opinion on major federal and state award program compliance and to
render the required reports. We cannot provide assurance that an unmodified opinion on compliance
will be expressed.Circumstances may arise in which it is necessary for us to modify our opinion or ithdraw
from the engagement.
The Uniform Guidance and UGMS require that we also plan and perform the audit to obtain rea onable
assurance about whether the City's has complied with applicable laws and regulations and the provisions
of contracts and grant agreements applicable to major federal and state award programs. Our
procedures will consist of determining major federal and state programs and performing the applicable
procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for
the types of compliance requirements that could have a direct and material effect on each of ft e City's
major programs.The purpose of those procedures will be to express an opinion on the City's corr pliance
with requirements applicable to each of its major programs in our report on compliance issued pursuant
to the Uniform Guidance and UGMS.
Mr. Cooke
City of Fort Worth
January 21, 2021
Page 5 of 9
Also, as required by the Uniform Guidance and UGMS, we will perform tests of controls to evalu to the
effectiveness of the design and operation of controls that we consider relevant to preventing or d tecting
material noncompliance with compliance requirements applicable to each of the City's major federal
and state award programs. However, our tests will be less in scope than would be necessary to render an
opinion on these controls and, accordingly, no opinion will be expressed in our report.
In accordance with the requirements of GAGAS, we will also issue a written report describing the scope
of our testing over internal control over financial reporting and over compliance with laws, reg lations,
and provisions of grants and contracts,including the results of that testing. However, providing an opinion
on internal control and compliance over financial reporting will not be an objective of the audit and,
therefore, no such opinion will be expressed.
We will issue a report on compliance that will include an opinion or disclaimer of opinion regar ing the
City's major federal and state award programs, and a report on internal controls over compliance that
will report any significant deficiencies and material weaknesses identified; however, such report will not
express an opinion on internal control.
Management Responsibilities
Our audit will be conducted on the basis that management acknowledge and understand t at they
have responsibility:
a. for the preparation and fair presentation of the basic financial statements in accordance with
Accounting Principles generally accepted in the United States;
b. for the design, implementation, and maintenance of internal control relevant to the pre aration
and fair presentation of basic financial statements that are free from material missta ement,
whether due to error, for fraudulent financial reporting, misappropriation of assets, or violc tions of
laws, governmental regulations, grant agreements, or contractual agreements;
c. to provide us with:
i. access to all information of which management is aware that is relevant to the pre aration
and fair presentation of the basic financial statements, and relevant to federal and state
award programs, such as records, documentation, and other matters;
ii. additional information that we may request from management for the purpose of the audit;
and
iii. unrestricted access to persons within the City's from whom we determine it necessary to
obtain audit evidence.
d. for including the auditor's report, and our report on any supplementary information if d scribed
above, in any document containing the basic financial statements that indicates that such basic
financial statements have been audited by the City's auditor;
e. for identifying and ensuring that the City's complies with the laws and regulations applicable to its
activities;
Mr. Cooke
City of Fort Worth
January 21, 2021
Page 6 of 9
f. for adjusting the basic financial statements to correct material misstatements and confirlming to
us in the management representation letter that the effects of any uncorrected missta ements
aggregated by us during the current engagement and pertaining to the current year under audit
are immaterial, both individually and in the aggregate, to the basic financial statements as a
whole;
g. for maintaining adequate records, selecting and applying accounting principl s, and
safeguarding assets;
h. for identifying all federal and state awards expended during the period including federal awards
and funding increments received prior to December 26,2014,and those received in acc rdance
with the Uniform Guidance generally received after December 26, 2014;
i. for preparing the schedule of expenses of federal and state awards (including notes and r oncash
assistance received) in accordance with the Uniform Guidance and UGMS;
j. for the design, implementation, and maintenance of internal control over compliance;
k. For identifying and ensuring that the City complies with laws, regulations, grants, and contracts
applicable to its activities and its federal and state award programs;
I. For following up and taking corrective action on reported audit findings from prior periods and
preparing a summary schedule of prior audit findings;
m. For following up and taking corrective action on current year audit findings and preparing a
corrective action plan for such findings;
n. For submitting the reporting package and data collection form to the appropriate partie ;
o. For making the auditor aware of any significant vendor relationships where the vendor is
responsible for program compliance;
p. with regard to the supplementary information referred to above: (a) for the preparation of the
supplementary information in accordance with the applicable criteria; (b) to provide usyvifh the
appropriate written representations regarding supplementary information; (c) to include our
report on the supplementary information in any document that contains the supplernenfary
information and that indicates that we have reported on such supplementary information; and
(d) to present the supplementary information with the audited basic financial statements,or if the
supplementary information will not be presented with the audited basic financial sfaterT ents, to
make the audited basic financial statements readily available to the intended user of the
supplementary information no later than the date of issuance by you of the supplernenfary
information and our report thereon;
q. informing us of facts that may affect the basic financial statements of which you may become
aware during the period from the date of the auditor's report to the date the basic f nancial
statements are issued;
r. for confirming your understanding of your responsibilities in this letter to us in your mina Dement
representation letter.
We understand that your employees will prepare all confirmations we request and will locate any
documents or support for any other transactions we select for testing.
Mr. Cooke
City of Fort Worth
January 21, 2021
Page 7 of 9
If we agree herein or otherwise to perform any non-attest services (such as tax services or any of er non-
attest services), you agree to assume all management responsibilities for those services; Oversee the
services by designating an individual, preferably from senior management,with suitable skill, knowledge,
or experience;evaluate the adequacy and results of the services;and accept responsibility for them.The
City has designed Reginald Zeno,Chief Financial Officer,to oversee these services.Such servicesinclude:
i. Reviewing the City's self-assessment questionnaire for PCI
ii. Tax Preparation for certain Component Units
GAGAS require that we document an assessment of the skills, knowledge, and experi nce of
management, should we participate in any form of preparation of the basic financial statements and
related schedules or disclosures as these actions are deemed a nonaudit/nonattest service.
During the course of our engagement, we will request information and explanations from management
regarding the City's operations, internal controls, future plans, specific transactions and accounting
systems 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's agrees that as a condition of our engagement to perform an audit 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 audit 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 mi leading
representations could cause us to expend unnecessary efforts in the audit; or, worse, could cause a
material error or a fraud to go undetected by our procedures.
Fees and Invoicing
The fee for our audit is governed by the Agreement. It is understood that neither our fees nor the payment
thereof will be contingent upon the results of this engagement.
Ethical Conflict Resolution
In the unlikely event that circumstances occur which we in our sole discretion believe could create 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 oir Ne 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.
Audit Documentation and Confidentiality
The audit documentation we prepare pertaining to and in support of this engagement, along Nvifh any
resulting work product, is our property and constitutes confidential information. If we are requ sted to
make the documentation available to regulators, government agencies (including federal r state
agencies and the U.S Government Accountability Office), peer reviewers, or other outside partie ,we will
notify you before producing any documents in response to the request (unless prohibited by law or
direction of law enforcement). Those outside parties may intend, or decide, to distribute the copies or
information contained therein to others,including other governmental agencies.Access will be provided
if required or authorized by law or regulation, or we will otherwise comply with any requirement for your
notification and consent prior to disclosure.
Mr. Cooke
City of Fort Worth
January 21, 2021
Page 8 of 9
It is expected that prior to the conclusion of the engagement, sections of the Data Collection Form will
be completed by our firm.The sections that we will complete summarize our audit findings by federal or
state grant or contract. Management is responsible to submit the reporting package (defined as
including basic financial statements, schedule of expenditures of federal and state awards, s mmary
schedule of prior audit findings, auditor's reports, and corrective action plan) along with the Data
Collection Form to the federal audit clearinghouse. The instructions to the Data Collection Form require
that the reporting package be an unlocked, unencrypted, text searchable portable docu ent file
("PDF") or else it will be rejected by the Federal Audit Clearinghouse. We will be available o assist
management in creating the PDF if needed.
We will coordinate with you the electronic submission and certification upon the reporting p ckage
completion. If applicable, we will provide copies of our report for you to include with the reporting
package if there is a need to submit the package to pass-through entities.
The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after
receipt of our reports or nine months after the end of the audit period.
We will retain our audit documentation for a period of at least seven years from the date of our report.
You agree that following such period,we may destroy the audit documentation without notice to you.
During the course of the engagement, we may communicate via fax, email, or other electronic
mechanism. Please be aware that communication in those mediums contains a risk of misdirected or
intercepted communications.
Miscellaneous
In accordance with the requirements of Government Auditing Standards, we have attached a copy of
the latest external peer review report of our firm for your consideration and files.
We may at times provide you with documents marked as drafts. You understand that those doc ments
are for your review purposes only. You should not rely upon those documents in any way.
Although the engagement partner responsible for this engagement is a licensed certified public
accountant, we inform you that we have non-licensees who may provide services pertaining to this
engagement.
We appreciate the opportunity to assist you and look forward to working with you and yourr team
Sincerely,
WEAVER AND TIDWELL, L.L.P.
Fort Worth,Texas
Please sign and return a copy of this letter to indicate your acknowledgment of, and agreement with,
the arrangements for our engagement as described herein, including each party's respective
responsibilities. By signing below,the signatory also represents that they have been authorized toe ecute
this agreement.
Mr. Cooke
City of Fort Worth
January 21, 2021
Page 9 of 9
City of Fort WorthF T—eXtr
By:
Printed Name:Darr Cooke
Title: City Manaqer
Date: b 6��
APPROVED AS 10 FORM AND LEGALITY:
By:
Denis C. McElroy
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:_ �����^ Ro✓Sl e 4 L/
Title: Assistant Finance Director
.77771
ATTEST:
Mary J. Ka ser
City Secretary
OFFICIAL RECC RD
CITY SECRETA 1Y
FT WORTH,TX
EideBailly,
CPAs&BUSINESS ADVISORS
Report on Firm's System of Quality Control
October 16,2019
To the Partners of Weaver and Tidwell, L.L.P.
and the National Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Weaver and Tidwell, L.L.P.
(the firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May
31, 2019.Our peer review was conducted in accordance with the Standards for Performing and Reporting on Reer
Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Stan ards).
A summary of the nature,objectives,scope, limitations of,and the procedures performed in a System Review as
described in the Standards may be found at www.aicpa.org/prsummary.The summary also includes an explanation of
how engagements identified as not performed or reported in conformity with applicable professional standards,if
any,are evaluated by a peer reviewer to determine a peer review rating.
Firm's Responsibility
The firm is responsible for designing a system of quality control and complying with it to provide the firm with
reasonable assurance of performing and reporting in conformity with applicable professional standards in all material
respects.The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not
performed or reported in conformity with professional standards,when appropriate,and for remediating weaknesses
in its system of quality control, if any.
Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance
therewith based on our review.
Required Selections and Considerations
Engagements selected for review included engagements performed under Government Auditing Standards, in Juding
compliance audits under the Single Audit Act;audits of employee benefit plans,an audit performed under FDI IA,an
audit of a broker-dealer,and examinations of service organizations [SOC 1 and SOC 2 engagements].)
As a part of our peer review,we considered reviews by regulatory entities as communicated by the firm,if applicable,
in determining the nature and extent of our procedures.
What inspires you, inspires us. ) eidebailly.com
U.S.Bancorp Center 1 800 Nicollet Mall,Ste.1300 1 Minneapolis,MN 55402-7033 1 T 612.253.6500 1 F 612.253.6600 1 EOE
Opinion
In our opinion,the system of quality control for the accounting and auditing practice of Weaver and Tidwell,
L.L.P. applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May
31, 2019, has been suitably designed and complied with to provide the firm with reasonable assurance of
performing and reporting in conformity with applicable professional standards in all material respects. Firms can
receive a rating of pass, pass with deficiency(ies)or fail.Weaver and Tidwell, L.L.P. has received a peer review
rating of pass.
4�-- ./1-7'
Eide Bailly LLP