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HomeMy WebLinkAboutContract 55644.., Assurance• To.IC• Advisory February 1, 2021 David Cooke, City Manager City of Fort Worth, Texas 200 Texas Street Fort Worth , TX 7 6102 Dear Mr. Cooke: This letter sets forth our understanding for applying agreed-upon procedures to certai public improvement districts (the PIDs) of the City of Fort Worth , Texas (the City) as of or for the perio ended September 30 , 2020 as follows: • City of Fort Worth Public Improvement District No. 1 -Downtown, • City of Fort Worth Public Improvement District No . 6 -Park Glen , • City of Fort Worth Public Improvement District No. 7 -Heritage , • City of Fort Worth Public District No. 11 -Stockyards • City of Fort Worth Public District No. 12 -Chapel Hill , • City of Fort Worth Public District No. 14 -Trinity Bluff , • City of Fort Worth Public District No. 15 -Sun Valley, and • City of Fort Worth Public Improvement District No. 19 -Historic Camp Bowie This engagement is solely for the purpose of reporting our findings in regards to the result of the procedures performed. The procedures we will perform have been agreed to by the City. Our Responsibilities For each of the identified PIDs, we will apply the following procedures: I 1. We will select a sample of expenditures from the population of all expenditures incurred:l during the year ended September 30, 2020. The sample size will be the lesser of 10% of the nu m ber of expenditure transactions or 25 expenditure transactions; I 2. For the sampled items in step number 1 we will obtain and review the supporting invojce and payment documentation to determine whether they agree with each other and to comJ:1)are the amount recorded in the accounting records to these supporting documents; I 3. We will obtain the PID Budget and Service Plan (the Plan) for the year ended September Bo, 2020 and ensure that the Plan was approved by the City of Fort Worth; l 4. We will compare final expenditures from the general ledger to the Plan and report any v riances of expenses in the general ledger exceeding the Plan , either within the managemb nt fee category or in total. A schedule of all expenditure categories compared to the Pla rl will be attached as an exhibit to each report I 5. For the sampled items selected in step number 1 we will determine if the expenditure was i roperly classified within the Plan (i) by functional category and (ii) in the appropriate fiscal year. I 6. We will summarize the detail for all expenditures for each PID by vendor. For expenditures ir curred by any PID to individual vendors in excess of $50 ,000 during the year ended September ~0, 2020 , we will select a sample of 25 % of the number of vendors for that PID in excess of $50,Gl00 and determine if competitive pro c urement is required , and if required , determine I' hether procurement requirements were p e rformed. OFFICiAl RECORD Weaver and Tidw II , L.L.P. CITY SECRETARY 2821 West 7th Street, Suite 700 I Fort Worth , Tex d s 76107 FT. WORTH, TX Main : 817 .332.7905 CPAs AND ADVISORS I WEAV ,R.COM City of Fort Worth, Texas February l, 2021 Page 2 We will conduct our engagement in accordance with the attestation standards for ogre d-upon procedures engagements of the American Institute of Certified Public Accountants and, the st©ndards 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 procedu es 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 sutti d ency 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 erform additional procedures, other matters might come to our attention that would be reported to yo 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 adr quacy of the services performed; (d) evaluating and accepting responsibility for the results of the f,ervices 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 We estimate that the fee for our engagement will be as follows: $2 ,500 per PID for agreed upon procedures for: • City of Fort Worth Public Improvement District No. l -Downtown, • City of Fort Worth Public Improvement District No. 6 -Park Glen, • City of Fort Worth Public Improvement District No. 7 -Heritage , • City of Fort Worth Public District No. 11 -Stockyards, • City of Fort Worth Public District No . 12 -Chapel Hill , • City of Fort Worth Public District No. 14 -Trinity Bluff , • City of Fort Worth Public District No. 15 -Sun Valley, and • City of Fort Worth Public Improvement District No. 19 -Historic Camp Bowie Our engagement fees do not include any time for post-engagement consultation with your pers nnel or third parties, consent letters and related procedures for the use of our reports in offering docl 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 and any increased duties because of any regulatory body or an unknown or unplanned significant tran saction. We will consult with you in the event any of these take place that may affect our fees . I .., 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 Company and will be intended for use by and restricted to the use of the specified parties as id ntified above. Our report will contain such restricted-use language. Should we have any reservations with respect to the subject matter, we will discuss them w ith yo 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 mono , ement regarding the City's operations, future plans, specific transactions and accounting syste I s and procedures. At the conclusion of our engagement, we will require , as a precondition to the issupnce of our report, that management provide certain representations in a written representation letter.~he City agrees that as a condition of our engagement that management will , to the best of its knowle ge and belief, be truthful, accurate, and complete in all representations made to us during the cours of the engagement and in the written representation letter. The procedures we perform in our engapement and the conclusions we reach as a basis for our report will be heavily influenced by the written G1nd oral representations that we receive from management. False or misleading representations could ause us to expend unnecessary efforts in our engagement; or, worse, could cause a material error or a mud to go undetected by our procedures. 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 cor tinuing our engagement, we may suspend our services until a satisfactory resolution can be achieved or 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 im , air our independence. Accordingly, you agree to inform the engagement partner prior to any such ~otential employment discussions taking place. Whenever possible, this engagement letter shall be interpreted in such a manner as to be effecti1ve and valid under applicable laws, regulations, or published interpretation, but if any term of this enga ement letter is declared illegal, unenforceable, or unconscionable, that term shall be severed or modif ed and the remain ing terms of the engagement letter shall remain in force. The parties agree that the cou t should modify any term declared to b e illegal, unenforceable, or unconscionable in a manner t hat II retain the intended term as closely as pos sible. If because of a change in status or due to any other reason , any provision in this engagement lett r would be prohibited by, or would impair our independence under laws, regulations or published interpr tations by governmental bodies, professional organizations or other regulatory agencies, such provision shall , to that extent, be of no further force and effect and this agreement shall consist of the remaining portions . During the course of the engagement, we may communicate with you or with your personnel v ia fax or e-mail, and you should be aware that communic ation in those mediums contains a risk of misdird cted or intercepted communications . City of Fort Worth , Texas February l , 2021 Page 4 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 si We plan to begin our procedures in December 2020, and unless unforeseeable proble s are encountered, the engagement should be completed by February 2021. The terms and cond tions of "Appendix A General Terms and Conditions" of Fort Worth City Secretary Contract 48167, as ame1ded by Contract 48167-Rl Al, shall generally apply to the engagement under this letter. To the exten~ of any conflict, the terms of this letter shall control. We look forward to a continued relationship with your organization, and we are available to dis uss the contents of this letter or other professional services you may desire . 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. WEAVER AND TIDWELL, L.L.P. City of Fort Worth, Texas February l , 2021 Page 5 RESPONSE: This letter correctly sets forth our understanding. ::knowledge~~e City of Fort Worth , Texas by: Printed Name:~ooke Title: City Manager Date: c7 p /;;..tJ/;Z / By : ~ Tyler F. Wallach Assistant City Attorney Approval: NA I Contract Compliance Manager: By signing, I acknowledge that I am the person responsible for the monitoring and administration of this con tract, including ensuring all performance and reporting re ~t~ Prin t ed Name: 4 // fti o1 '7 /(o vJf,,,.4'. v Title: Assistant Finance Director ATTEST : By: OFFICIAL REC l)RD CllY SECRET, ,RY FT. WORTH, TX