HomeMy WebLinkAboutContract 44790 (2)Deloitte
August 20, 2013
Chair, Audit Committee
City of Fort Worth, Texas
1000 Throckmorton
Fort Worth, Texas
CITY SECRETARY , i,��1
CONTRACT NO. `�
City Secretary Contract No.
CITY OF FORT WORTH
DELOITTE & TOUCHE LLP
INDEPENDENT AUDIT ENGAGEMENT
Mr. Terry Holderman, Acting City Auditor
City of Fort Worth, Texas
1000 Throckmorton
Fort Worth, Texas
Dear Mr. Holderman:
Deloitte B Touche LLP
Suite 1501
201 Main Street
Fort Worth, TX 76102-3134
USA
Tel: +1 817 347 3300
Fax: +1 817 336 2013
www.deloitte.com
Deloitte & Touche LLP ("D&T" or "we" or "us") is pleased to serve as independent auditors for
City of Fort Worth (the "City" or "you" or "your"), each individually referred to as a "party,"
collectively referred to as the "parties." Mr. Terry Kile, Lead Client Service Director, will be
responsible for the services that we perform for the City hereunder, hereafter referred to as the
"engagement."
In addition to the audit services we are engaged to provide under this engagement letter, we
would also be pleased to assist the City on issues as they arise throughout the year. Hence, we
hope that you will call the Lead Client Service Director whenever you believe D&T can be of
assistance.
This engagement letter shall consist of the following documents plus appendices:
This Engagement Letter
- Appendix A — Description of D&T's Responsibilities and an Audit Under Generally
Accepted Auditing Standards, Generally Accepted Government Auditing Standards, US
Office of Management and Budget (OMB) Circular A-133 Compliance Supplement
("OMB Circular A-133"), and the State of Texas Governor's Office of Budgets and
Planning Uniform Grant Management Standards ("UGMS')
- Appendix B — Management's Responsibilities
- Appendix C — Communications with the Audit Committee
RECEIVED SEP 12 2016
OFFICIAL RECORD
CITY SEC TI
FT. WORTHq TX
Member of
Deloitte Touche Tohmatsu
Appendix D
- Appendix E -
- Appendix F —
Appendix G
— Coordination of the Audit
Circumstances Affecting Timing and Fee Estimate
General Business Terms
— Dispute Resolution Provision
All appendices are attached hereto, incorporated by reference herein and made a part of this
engagement letter for all purposes. The services to be performed by D&T pursuant to this
engagement are subject to the terms and conditions set forth herein and in the accompanying
appendices. Such terms and conditions shall be effective as of the date of the commencement of
such services.
Audit of Financial Statements and Other Reporting
Our engagement is to perform an audit in accordance with (1) auditing standards generally
accepted in the United States of America ("generally accepted auditing standards") and (2) the
standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States ("generally accepted government auditing
standards") (generally accepted auditing standards and generally accepted government auditing
standards are collectively referred to herein as the "Auditing Standards"), and (3) the OMB
Circular A-133 and the UGMS. The objectives of an audit conducted in accordance with the
Auditing Standards and OMB Circular A-133 and UGMS are to:
• Express an opinion on whether each opinion unit of the basic financial statements, and
the accompanying supplementary information, in relation to the basic financial
statements as a whole, for the year ending September 30, 2013 (the "financial
statements"), are presented fairly, in all material respects, in accordance with accounting
principles generally accepted in the United States of America ("generally accepted
accounting principles"), and perform specified procedures on the required supplementary
information for the year ending September 30, 2013, except for the Employees'
Retirement Fund of the City of Fort Worth and the Villas of Eastwood Terrace LLC
which are audited by other auditors
• Express an opinion on whether the supplementary information that accompanies the
financial statements, including the schedule of expenditures of federal awards is fairly
stated, in all material respects, in relation to the financial statements as a whole
• Report on the City's internal control over financial reporting and on its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters
for the year ending September 30, 2013, based on an audit of financial statements
performed in accordance with generally accepted government auditing standards
• Report on the City's compliance with requirements applicable to each major program
and on internal control over compliance in accordance with OMB Circular A-133 and
UGMS.
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
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Appendix A contains a description of the auditor's responsibilities and the scope of an audit in
accordance with the Auditing Standards and OMB Circular A-133 and UGMS.
D&T Reports
We expect to issue written reports upon the completion of our audit. Our ability to express any
opinion or to issue any report as a result of this engagement and the wording thereof will, of
course, be dependent on the facts and circumstances at the date of our reports. If, for any reason,
we are unable to complete our audit or are unable to form or have not formed any opinion, we
may decline to express any opinion or decline to issue any report as a result of this engagement.
If we are unable to complete our audit, or if any report to be issued by D&T as a result of this
engagement requires modification, the reasons for this will be discussed with the Audit
Committee, the City's management, and as necessary, the City Council.
Management's Responsibilities
Appendix B describes management's responsibilities.
Responsibility of the Audit Committee
As independent auditors of the City, we acknowledge that the Audit Committee of the City
Council ("Audit Committee") and the City Council are directly responsible for the appointment,
compensation, and oversight of our work, and accordingly, except as otherwise specifically
noted, we will report directly to the Audit Committee. You have advised us that the services to be
performed under this engagement letter, including, where applicable, the use by D&T of
affiliates or related entities, and the use by D&T of selected Minority and Women Business
Enterprises ("MWBE") subcontractors in connection with this engagement, have been approved
by the Audit Committee in accordance with the City Council's established preapproval policies
and procedures.
Term of the Engagement
This engagement shall begin upon the last day executed by both parties ("Effective Date") and
shall expire upon completion of the engagement for the year ended September 30, 2013. This
engagement shall be renewed on an annual basis for the following two (2) consecutive years
upon the parties execution of an annual engagement letter in a form substantially similar to this
engagement letter. This is the third of four renewals. Following the expiration of the fourth
renewal, the City shall have the sole option to renew this engagement for each of the five (5)
following consecutive years upon the parties' execution of an annual engagement letter in a form
substantially similar to this engagement letter.
Communications with the Audit Committee
Appendix C describes various matters that we are required by the Auditing Standards and OMB
Circular A-133 and UGMS to communicate with the Audit Committee and management.
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
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Fees
We estimate that our fees for the audit of the City's financial statements will be based on
personnel assigned and actual hours incurred, plus expenses. Based on our anticipated levels of
participation, we estimate our blended hourly rates, audit hours, and total costs for the audit of
the City's basic financial statements for fiscal years 2013-2014 to be as follows:
Year
2013
Estimated Estimated Blended Rate Estimated Total
Normal Hours Additional Cost
Hours Required
6,000 1,600 $150.00 $1,140,000.00
2014 6,000 1,600 $158.00 $1,200,800.00
The fees above assume six major programs in the federal and state single audits. An additional
$10,000 will be billed for each major program that is required to be tested in excess of six.
Should the required leverage model change (i.e. more experienced personnel time be required
than expected), these rates may change. If any such situation occurs, we will promptly notify
you and discuss with you the need to adjust our rates. Should the City reduce or eliminate all
control weaknesses that are classified as significant deficiencies and material weaknesses, the
number of additional hours to complete the audits may be reduced; thereby lowering the
estimated total costs accordingly. Invoices shall be sent monthly, and payments are due within
thirty (30) days of receipt of the invoice.
Non -appropriation of Funds.
D&T and the City agree that all payments due hereunder shall be subject to the City Council's
appropriation of funding for this engagement. In the event no funds or insufficient funds are
appropriated by the City for any payments due hereunder, during this engagement, or any
renewal term, the City will notify D&T of such occurrence and the City shall have the right to
terminate this engagement without penalty or expense to the City of any kind whatsoever.
Notwithstanding the above, the City shall pay D&T for services actually rendered and expenses
incurred up to the effective date of termination.
Our continued service on this engagement is dependent upon payment of our invoices in
accordance with these terms. Our estimated fees are based on certain assumptions, including
(1) timely and accurate completion of the requested entity participation schedules and additional
supporting information, (2) no inefficiencies during the audit process or changes in scope caused
by events that are beyond our control, (3) the effectiveness of internal control over financial
reporting throughout the period under audit, (4) a minimal level of audit adjustments (recorded or
unrecorded), and (5) no changes to the timing or extent of our work plans. We will notify you
promptly of any circumstances we encounter that could significantly affect our estimate and
discuss with you any additional fees, as necessary. Additional services provided beyond the
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
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scope of services described herein will be billed separately as approved by the City Council as
necessary.
Access to Working Papers by Regulators
In accordance with the requirements of generally accepted government auditing standards, we are
required to make all audit -related documents, including auditors' reports, working papers, and
management letters, available to a federal agency or the Comptroller General of the United States
upon their request for their regulatory oversight purposes. If such a request is made, we will
inform you prior to providing such access. The working papers for this engagement are the
property of D&T and constitute D&T's confidential information. We may request confidential
treatment of D&T information. If we are requested to make photocopies of audit -related
documents, we will maintain control over duplication of all information. City of Fort Worth
hereby grants us permission to provide access to and to make and permit others to make
photocopies of all audit -related documents, including auditors' reports, working papers and
management letters, to representatives of the United States Government Accountability Office
(GAO) or other appropriate government audit staffs. D&T may require its personnel to supervise
the photocopying of audit -related documents and may specify the location at which such
documents may be photocopied. The working papers relating to this audit will be retained by us
for a minimum of three years from the dates of the reports issued, or such longer period as
required to satisfy legal and administrative requirements.
Inclusion of D&T Reports or References to D&T in Other Documents or Electronic
Sites
If the City intends to publish or otherwise reproduce in any document any report issued as a
result of this engagement, or otherwise make reference to D&T in a document that contains other
information in addition to the audited financial statements (e.g., in a periodic filing with a
regulator, in a debt or equity offering circular, or in a private placement memorandum), thereby
associating D&T with such document, the City agrees that its management will provide D&T
with a draft of the document to read and obtain our approval for the inclusion or incorporation by
reference of any of our reports, or the reference to D&T, in such document before the document
is printed and distributed. The inclusion or incorporation by reference of any of our reports in
any such document would constitute the reissuance of such reports. The City also agrees that its
management will notify us and obtain our approval prior to including any of our reports on an
electronic site.
Our engagement to perform the services described herein does not constitute our agreement to be
associated with any such documents published or reproduced by or on behalf of the City. Any
request by the City to reissue any report issued as a result of this engagement, to consent to any
such report's inclusion or incorporation by reference in an offering or other document, or to
agree to any such report's inclusion on an electronic site will be considered based on the facts
and circumstances existing at the time of such request. The estimated fees outlined herein do not
include any services that would need to be performed in connection with any such request; fees
for such services (and their scope) would be subject to the mutual agreement of the City and
D&T at such time as D&T is engaged to perform the services and would be described in a
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2013 Independent Audit Engagement
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separate engagement letter. Our fee for this additional work is $5,000 per bond issuance. Should
the City require agreed -upon procedures related to revenue bond coverage, our fee would be
increased to $7,500 per bond issuance.
Notwithstanding the foregoing, D&T understands and acknowledges that the City is a public
entity under the laws of the State of Texas, and as such, all documents and data held by the City
are subject to disclosure under Chapter 552 of the Texas Government Code, the Texas Public
Information Act (the "Act"). If the City is required to disclose any documents that may reveal any
D&T proprietary information to third parties under the Act, or by any other legal process, law,
rule or judicial order by a court of competent jurisdiction, the City will, unless otherwise
prohibited by law or regulation, notify D&T prior to disclosure of such documents. The City
shall not be liable or responsible in any way for the disclosure of information not clearly marked
as "Proprietary/Confidential Information" or if disclosure is required by the Act or any other
applicable law or court order. In the event there is a request for such information under the Act, it
will be the responsibility of D&T to submit reasons objecting to disclosure. A determination on
whether such reasons are sufficient will not be decided by the City, but by the Office of the
Attorney General of the State of Texas, or by a court of competent jurisdiction.
The parties acknowledge and agree that D&T is being engaged under this engagement letter to
provide only the services described herein. Should the City request, and should D&T agree to
provide, services (including audit services) beyond those described herein, such services will
constitute a separate engagement and will be governed by a separate engagement letter.
This engagement letter, including Appendices A through G attached hereto and made a part
hereof, constitutes the entire agreement between the parties with respect to this engagement and
supersedes any other prior or contemporaneous agreements or understandings between the
parties, whether written or oral, relating to this engagement.
If the above terms are acceptable and the services described are in accordance with your
understanding, please sign the copy of this engagement letter in the space provided and return it
to us.
[Signature Page Follows]
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
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By:
ACCEPTED AND AGREED:
D41-0-4: - ' To-t4<..,.,_. L ` P
Deloitte & Touche LLP
ACCEPTED AND AGREED: ATTEST:
City of Fort Worth, Texas
aJa/
By:
Mary Kayser', City Secretary
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W. Da..:Js, Assistant City Manager Contract Authorization:
Date:
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APPROVAL RECOMMENDED:
Terry Holderman, Acting City Auditor
APPROVER TORM A LEGALITY:
B
Maleshia B. Farmer
Senior Assistant City Attorney
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
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M&C: C-24442; Approved 9/14/2010
OFFICIAL RECORD
CITY SECRETARY
CST N�+.IRTf 9
APPENDIX A
AUDITOR'S RESPONSIBILITIES AND SCOPE OF AN AUDIT IN ACCORDANCE
WITH THE AUDITING STANDARDS AND OMB CIRCULAR A-133 AND UGMS
This Appendix A is part of the engagement letter dated August 20, 2013 between Deloitte &
Touche LLP and City of Fort Worth.
Auditor's Responsibilities
Our responsibilities under the Auditing Standards and OMB Circular A-133 and UGMS include
forming and expressing opinions and reporting on certain matters as described in the Audit of
Financial Statements and Other Reporting section of this engagement letter. The audit of the
financial statements and our reporting on other matters do not relieve management or the Audit
Committee of their responsibilities.
Scope of an Audit and Other Reporting
The Auditing Standards and OMB Circular A-133 and UGMS require that we plan and perform
the audit to obtain reasonable, rather than absolute, assurance about whether each opinion unit of
the financial statements are free from material misstatement, whether caused by fraud or error.
However, because of the inherent limitations of an audit, together with the inherent limitations of
internal control, an unavoidable risk exists that some material misstatements may not be detected,
even though the audit is properly planned and performed in accordance with the Auditing
Standards and OMB Circular A-133 and UGMS. We have no responsibility to plan and perform
the audit to obtain reasonable assurance that misstatements, whether caused by fraud or error,
that are not material to the financial statements as a whole are detected.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on our judgment,
including the assessment of the risks of material misstatement of the financial statements,
whether caused by fraud or error. In making those risk assessments, we consider internal control
relevant to the City'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 Entity's internal control. 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.
An audit also includes tests of the City's compliance with certain provisions of laws, regulations,
contracts, and grant agreements. However, our objective is not to provide an opinion on
compliance with those provisions, and accordingly, we will not express such an opinion.
As part of the audit, we will be alert to situations or transactions that could be indicative of abuse
as defined by generally accepted government auditing standards, which involves behavior that is
deficient or improper when compared with behavior that a prudent person would consider
reasonable and necessary business practice given the facts and circumstances. Abuse also
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2013 Independent Audit Engagement
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includes misuse of authority or position for personal financial interests or those of an immediate
or close family member or business associate. The determination of abuse is subjective; generally
accepted government auditing standards do not require us to provide reasonable assurance of
detecting abuse, and we will not design the audit to detect abuse. However, if we become aware
of abuse that could be quantitatively or qualitatively material to the financial statements, we will
apply procedures specially directed to ascertain the potential effect on the financial statements or
other financial data significant to the audit objectives. Under generally accepted government
auditing standards, we may be required to directly report fraud, illegal acts, noncompliance with
provisions of contracts or grant agreements, and abuse to outside parties.
Generally accepted accounting principles provide for certain required supplementary information
(RSI), such as a management's discussion and analysis, to accompany the City's financial
statements. As part of the audit, we will apply certain limited procedures to the City's RSI, which
will consist principally of inquiries of management about the methods of preparing the
information. We will disclaim an opinion on the RSI, unless (1) some of the RSI is omitted, (2)
the measurement or presentation of the RSI departs materially from the prescribed guidelines, or
(3) we have unresolved doubts about whether the RSI is measured or presented in accordance
with prescribed guidelines.
Supplementary information other than RSI, such as budgetary comparison information, the
schedule of expenditures of federal and state awards, and statistical data, also accompany the
City's financial statements. We will subject supplementary information that is financially
oriented to the audit procedures applied in the audit of the financial statements and express an
opinion on whether such information is fairly stated, in all material respects, in relation to the
City's financial statements as a whole. We will disclaim an opinion on supplementary
information that comprises nonaccounting information or accounting information that is not
directly related to the financial statements.
Scope of an OMB Circular A-133 Audit
An audit in accordance with OMB Circular A-133 includes (1) determining which federal and
state programs should be considered major programs and thus be included within the scope of the
audit; (2) evaluating the overall presentation of the schedule of expenditures of federal awards
and other supplementary information in relation to the financial statements as a whole; (3)
evaluating the items to be included in the schedule of findings and questioned costs and the
reasonableness of the summary schedule of prior -year findings; (4) obtaining and reporting the
views of responsible officials concerning the findings, conclusions, and recommendations, as
well as their planned corrective actions; (5) preparing a schedule of findings and questioned
costs; and (6) completing and signing the auditor -prepared sections of OMB Data Collection
Form that summarizes our audit findings.
We will plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the types of compliance requirements that are applicable to the City's major federal
programs could have a direct and material effect on each of its major federal programs. The audit
includes examining, on a test basis, evidence about the City's compliance with those
requirements and performing such other procedures as we consider necessary in the
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2013 Independent Audit Engagement
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circumstances. The audit does not provide a legal determination on the City's compliance with
those requirements.
As part of the audit of the City's compliance with the requirements of major federal and state
programs, we will obtain an understanding of the City's internal control related to administering
major federal and state programs, and we will assess risk as required by OMB Circular A-133 for
the purpose of establishing the nature, timing, and extent of audit procedures necessary for
expressing an opinion concerning compliance with laws and regulations related to major federal
and state award programs.
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2013 Independent Audit Engagement
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APPENDIX B
MANAGEMENT'S RESPONSIBILITIES
This Appendix B is part of the engagement letter dated August 20, 2013 between Deloitte &
Touche LLP and City of Fort Worth.
Financial Statements, Internal Control, and Compliance
Management is responsible for the preparation, fair presentation, and overall accuracy of the
financial statements in accordance with generally accepted accounting principles and all
accompanying information in accordance with prescribed guidelines or applicable criteria. In this
regard, management has the responsibility for, among other things:
• Selecting and applying the accounting policies
• Designing, implementing, and maintaining effective internal control relevant to (1) the
preparation and fair presentation of financial statements that are free from material
misstatement, whether due to fraud or error and (2) compliance with laws, regulations,
and provisions of contracts or grant agreements
• Identifying and ensuring that the City complies with the laws and regulations applicable
to its activities and the provisions of contracts or grant agreements, and informing us of
all instances of identified or suspected noncompliance with such laws, regulations, or
provisions
• Providing us with (1) access to all information of which management is aware that is
relevant to the preparation and fair presentation of the financial statements and all
accompanying supplementary information, such as records, documentation, and other
matters, (2) additional information that we may request from management for the
purpose of our audit, and (3) unrestricted access to personnel within the Entity from
whom we determine it necessary to obtain audit evidence
• Taking timely and appropriate steps to remedy fraud, illegal acts, noncompliance with
provisions of contracts or grant agreements, or abuse that we report
• Having a process to track the status of audit findings and recommendations
• Identifying for us previous audits, attestation engagements, and other studies related to
the objectives of our audit and whether related recommendations have been
implemented.
• Providing its view on our current reported findings, conclusions, and recommendations,
as well as its planned corrective actions, for our reports. The corrective action plan that
the City develops for its OMB Circular A-133 reporting package may fully or partially
satisfy this responsibility.
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2013 Independent Audit Engagement
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• Submitting the reporting package and OMB Data Collection Form to the Federal Audit
Clearinghouse.
Management is also responsible for (1) preparing supplementary information other than RSI,
such as budgetary comparison information, the schedule of expenditures of federal and state
awards, and statistical data in accordance with the applicable criteria, (2) including our report on
the supplementary information in any document that contains such information and that indicates
that D&T has reported on such information, and (3) presenting the supplementary information
with the City's audited financial statements or, if such information will not be presented with the
City's audited financial statements, to make the audited financial statements readily available to
the intended users of such information no later than the date of issuance by the Entity of the
supplementary information and our report thereon.
Management's Representations
We will make specific inquiries of the City's management about the representations (1)
embodied in the financial statements and accompanying information, (2) regarding the
effectiveness of internal control, and (3) regarding the City's compliance with laws, regulations,
and the provisions of contracts and grant agreements. In addition, we will request that
management provide us with the written representations the City is required to provide to its
independent auditors. The responses to those inquiries and the written representations of
management are part of the evidential matter that D&T will rely on in forming its opinion on the
City's financial statements and reporting on accompanying information. Because of the
importance of management's representations, the City agrees to release and, to the extent not
prohibited by applicable law, indemnify D&T, its subcontractors, and their respective personnel
from all claims, liabilities, and expenses relating to our services under this engagement letter
attributable to any misrepresentation by management.
Process for Obtaining Preapproval of Services
Management is responsible for the coordination of obtaining the preapproval of the City Council,
in accordance with the City Council's preapproval process, for any services to be provided by
D&T to the City.
Independence Matters
In connection with our engagement, D&T, management, and the Audit Committee will assume
certain roles and responsibilities in an effort to assist D&T in maintaining independence.
Management of the City will ensure that the City has policies and procedures in place for the
purpose of ensuring that the City will not act to engage D&T or accept from D&T any service
that under the American Institute of Certified Public Accountants (AICPA), generally accepted
government auditing standards, or other applicable rules would impair D&T's independence. All
potential services are to be discussed with the Lead Client Service Director.
Management will coordinate with D&T to ensure that D&T's independence is not impaired by
hiring former or current D&T partners, principals, or professional employees in a key position, as
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2013 Independent Audit Engagement
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defined in the AICPA Code of Professional Conduct, that would cause a violation of the AICPA
Code of Professional Conduct, generally accepted government auditing standards, or other
applicable independence rules. Any employment opportunities with the City for a former or
current D&T partner, principal, or professional employee should be discussed with the Lead
Client Service Director before entering into substantive employment conversations with the
former or current D&T partner, principal, or professional employee.
Equity or Debt Security Issuances
The City agrees to furnish to D&T and keep D&T updated with respect to any equity or debt
securities of the City and its affiliates (including, without limitation, tax -advantaged debt of such
entities that is issued through governmental authorities) that are available to individual investors
(whether through stock, bond, commodity, futures or similar markets in or outside of the United
States, or equity, debt, or any other securities offerings), together with related securities
identification information (e.g., ticker symbols or CUSIP®, ISIN®, or Sedol® numbers). The
Entity acknowledges and consents that such information may be treated by D&T as being in the
public domain.
For purposes of the preceding four paragraphs, "D&T" shall mean Deloitte & Touche LLP and
its subsidiaries; Deloitte Touche Tohmatsu Limited, its member firms, the affiliates of Deloitte &
Touche LLP, Deloitte Touche Tohmatsu Limited, and its member firms; and, in all cases, any
successor or assignee.
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2013 Independent Audit Engagement
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APPENDIX C
COMMUNICATIONS WITH THE AUDIT AND FINANCE ADVISORY COMMITTEE
This Appendix C is part of the engagement letter dated August 20, 2013 between Deloitte &
Touche LLP and City of Fort Worth.
We are responsible for communicating with the Audit Committee significant matters related to
the audit that are, in our professional judgment, relevant to the responsibilities of the Audit
Committee in overseeing the financial reporting process.
In connection with the foregoing, we will communicate to the Audit Committee any fraud we
identify or suspect that involves (1) management, (2) employees of the City who have significant
roles in internal control, or (3) other employees of the City when the fraud results in a material
misstatement of the financial statements. In addition, we will communicate with the Audit
Committee any other matters related to fraud that are, in our professional judgment, relevant to
their responsibilities. We will communicate to management any fraud perpetrated by lower -level
employees of which we become aware that does not result in a material misstatement of the
financial statements; however, we will not communicate such matters to the Audit Committee,
unless otherwise directed by the Audit Committee.
In addition, as required by generally accepted government auditing standards, our report on the
City's internal control over financial reporting and on its compliance with certain provisions of
laws, regulations, contracts, and grant agreements and other matters will include any findings of
material noncompliance of such provisions, fraud, and material abuse that we have identified
during our audit.
We will also communicate, in writing, to management and the Audit Committee significant
deficiencies or material weaknesses in internal control (as defined in generally accepted auditing
standards) that we have identified during the audit, including those that were remediated during
the audit.
We will also communicate certain matters to management and the Audit Committee, including
our responsibilities for testing and reporting on the City's internal control over financial
reporting and on its compliance with laws, regulations, and provisions of contracts or grant
agreements, both for the financial statement audit and OMB Circular A-133 audit. In addition,
we will communicate to management and the Audit Committee the following matters, if any are
identified during our audit material noncompliance with laws, regulations, and provisions of
contracts or grant agreements related to major federal and state programs; certain known
questioned costs; fraud affecting federal and state awards; abuse that is material to a federal and
state program; and other federal and state award audit findings as required by generally accepted
government auditing standards and OMB CircularA-133.
We are not required to design procedures for the purpose of identifying other matters to
communicate with the Audit Committee. However, we will communicate to the Audit Committee
matters required by the Auditing Standards and OMB Circular A-133 and UGMS.
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2013 Independent Audit Engagement
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We may also communicate to management and the Audit Committee on internal control,
compliance, or other matters we observe and possible ways to improve the City's operational
efficiency and effectiveness or otherwise improve its internal control or other policies and
procedures.
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2013 Independent Audit Engagement
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APPENDIX D
COORDINATION OF THE AUDIT
This Appendix D is part of the engagement letter dated August 20, 2013 between Deloitte &
Touche LLP and City of Fort Worth.
We will plan the performance of our audit in accordance with the following estimated timetable:
Estimated to Targeted for
Begin Completion
Audit Performance Schedule:
Planning August October
2013 2013
Interim audit procedures August November
2013 2013
Year-end audit procedures December March
2013 2014
the Audit Committee Communications:
Report on audit, including communications required March 2014
by AICPA AU 380
Communication of control -related matters (as March 2014
required by AICPA AU 325)
Report on the City's internal control over financial March 2014
reporting and on compliance with certain provisions
of laws, regulations, contracts, and grant agreements
Report on the City's compliance with requirements March 2014
applicable to each major program and on internal
control over compliance as required by OMB
Circular A-133 and UGMS
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
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APPENDIX E
CIRCUMSTANCES AFFECTING TIMING AND FEE ESTIMATE
This Appendix E is part of the engagement letter dated August 20, 2013 between Deloitte &
Touche LLP and City of Fort Worth.
The fees quoted for our services are based on certain assumptions. Circumstances may arise
during the engagement that may significantly affect the targeted completion dates or our fee
estimate. As a result, changes to the fees may be necessary. Such circumstances include but are
not limited to the following:
Audit Facilitation
1. Changes to the timing of the engagement at the City's request. Changes to the timing of the
engagement usually require reassignment of personnel used by D&T in the performance of
services hereunder. However, because it is often difficult to reassign individuals to other
engagements, D&T may incur significant unanticipated costs.
2. All audit schedules are not (a) provided by the City on the date requested, (b) completed in a
format acceptable to D&T, (c) mathematically correct, or (d) in agreement with the
appropriate City records (e.g., general ledger accounts). D&T will provide the City with a
separate listing of required schedules, information requests, and the dates such items are
needed.
3. Significant delays in responding to our requests for information, such as reconciling
variances or providing requested supporting documentation (e.g., invoices, contracts, and
other documents).
4. Deterioration in the quality of the City's accounting records during the current -year
engagement in comparison with the prior -year engagement.
5. A completed trial balance, referenced to the supporting analyses and schedules and basic
financial statements, is not provided timely by the City's personnel.
6. Draft basic financial statements with appropriate supporting documentation are not prepared
accurately and timely by the City's personnel.
7. Electronic files in an appropriate format and containing the information requested are not
provided by the City on the date requested for our use in performing file interrogation. D&T
will provide the City with a separate listing of the required files and the dates the files are
needed.
8. The engagement team, while performing work on the City's premises, is not provided with
high-speed access to the Internet via the City's existing network or through a T1, DSL, or
cable connection for purposes of conducting the engagement.
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
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Significant Issues or Changes
9. Significant deficiencies or material weaknesses in the design or operating effectiveness of
the City's internal control over financial reporting or internal control over federal programs
are identified during our audit that result in the expansion of our audit procedures.
10. A significant level of proposed audit adjustments is identified during our audit.
11. A significant number of drafts of the basic financial statements are submitted for our review,
or we identify a significant level of deficiencies in the draft basic financial statements.
12. Significant new issues or changes as follows:
a. Significant new accounting issues.
b. Significant changes in accounting policies or practices from those used in prior years.
c. Significant events or transactions not contemplated in our budgets.
d. Significant changes in the City's financial reporting process or Information Technology
systems.
e. Significant changes in the City's accounting personnel, their responsibilities, or their
availability.
f. Significant changes in auditing standards.
g•
Significant changes in the City's use of specialists, or the specialists or their work
product does not meet the qualifications required by generally accepted auditing
standards for our reliance upon their work.
13. The procedures necessary to adopt any new Statements of Government Accounting
Standards have not been completed by the City's personnel.
14. Changes in audit scope caused by events that are beyond our control.
Payment for Services Rendered
15. Without limiting its rights or remedies, D&T may halt or terminate its services entirely if
payment is not received within 30 days of the date of the invoice.
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2013 Independent Audit Engagement
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APPENDIX F
GENERAL BUSINESS TERMS
This Appendix F is part of the engagement letter to which these terms are attached (the
engagement letter, including its appendices, the "engagement letter") dated August 20,
2013 between Deloitte & Touche LLP and City of Fort Worth.
1. Independent Contractor. D&T is an independent contractor and D&T is not, and will not be
considered to be, an agent, partner, fiduciary, or representative of the City or the Audit
Committee. D&T shall have exclusive control of and the exclusive right to control, the details
of the work performed hereunder by its employees, officers, personnel and subcontractors, and
shall be solely responsible for the acts and omissions of its employees, officers, personnel and
subcontractors. Nothing herein shall be construed as creating a partnership or joint venture
between the City and D&T, and the doctrine of respondeat superior shall have no application
as between the City and D&T.
2. Survival. The agreements and undertakings of the City contained in the engagement letter
will survive the completion or termination of this engagement.
3. Assignment and Subcontracting. Except as provided below, neither party may assign any of
its rights or obligations hereunder (including, without limitation, interests or claims relating
to this engagement) without the prior written consent of the other party. The City hereby
consents to D&T subcontracting a portion of its services under this engagement to any D&T
affiliate, whether located within or outside of the United States. Professional services
performed hereunder by any of D&T's affiliates or related entities shall be invoiced as
professional fees, and any related expenses shall be invoiced as expenses, unless otherwise
agreed. In addition, the City also hereby consents to the use by D&T of minority
subcontractors if required, which may be located outside of the United States, as a
subcontractor in connection with this engagement; professional services performed
hereunder by subcontractor and any related expenses shall be invoiced as expenses, unless
otherwise agreed. D&T shall be responsible for its subcontractors' performing services in
connection with this engagement to the same extent that D&T would be if it were
performing such services.
4. Severabilitv. If any term of the engagement letter is unenforceable, such term shall not
affect the other terms, but such unenforceable term shall be deemed modified to the extent
necessary to render it enforceable, preserving to the fullest extent permissible the intent of
the parties set forth herein.
5. Force Maieure. No party shall be deemed to be in breach of the engagement letter as a
result of any delays or non-performance directly or indirectly resulting from circumstances
or causes beyond its reasonable control, including, without limitation, fire, epidemic or
other casualty, act of God, strike or labor dispute, war or other violence, or any law, order or
requirement of any governmental agency or authority.
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2013 Independent Audit Engagement
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6. Dispute Resolution. Any controversy or claim between the parties arising out of or relating
to the engagement letter or this engagement (a "Dispute") shall be resolved as set forth in
the Dispute Resolution Provision attached hereto as Appendix G and made a part hereof.
7. Amendments. This engagement letter may not be amended, changed or otherwise modified
without the prior written consent of both parties.
8. Insurance. D&T shall carry insurance in the types and amounts for the duration of this
engagement, including any renewal terms, and furnish certificates of insurance as evidence
thereof. Coverage and Limits: Commercial General Liability - $1,000,000 each occurrence;
$1,000,000 aggregate. Automobile Coverage: $1,000,000 each occurrence on a combined
single limit basis. Automobile coverage shall be on any vehicle used by D&T, its
employees, agents, representatives in the course of the providing services under this
engagement. "Any vehicle" shall be any vehicle owned, hired and non -owned. Worker's
Compensation: statutory limits. Professional Liability (Errors and Omissions): $1,000,000
each claim limit; $1,000,000 aggregate limit. Professional Liability coverage may be
provided through an endorsement to the Commercial General Liability (CGL) policy, or a
separate policy specific to Professional E&O. Either is acceptable if coverage meets all
other requirements. Coverage shall be claims -made, and maintained for the duration of the
engagement and for two (2) years following completion of services provided, if
commercially available. An annual certificate of insurance shall be submitted to the City to
evidence coverage.
Certificates. Certificates of Insurance evidencing that D&T has obtained all required
insurance shall be delivered to the City prior to D&T proceeding with any work pursuant to
this engagement. The commercial general liability and automobile liability policies shall be
endorsed to include the City as an additional insured thereon, as its interests may appear.
The term City shall include its employees, officers, officials, agent and volunteers in respect
to the contracted services. Any failures on the part of the City to request required insurance
documentation shall not constitute a waiver of the insurance requirement. D&T will
endeavor to provide a minimum of thirty (30) days' notice of cancellation of coverage to the
City. Ten (10) days' notice shall be acceptable in the event of non-payment of premium.
Notice shall be sent to the Risk Manager, City of Fort Worth, 1000 Throckmorton, Fort
Worth, Texas 76102, with copies to the City Attorney at the same address.
9. Termination. The City may terminate this engagement if D&T fails to cure a material
breach within thirty (30) calendar days of receipt of written notice being given of such
material breach. If more than thirty (30) calendar days are required to cure such material
breach, a reasonable time in excess of said days may be established, provided both parties
agree in writing as to the time period. In the event such material breach is not cured within
the specified time, the City shall have the right terminate this engagement immediately upon
expiration of the specified time and upon written notice to D&T. The City may terminate this
engagement for any reason, with or without cause, upon ninety (90) days written notice to
D&T. In the event that this engagement is terminated prior to the expiration date, D&T
shall immediately discontinue all services or the entering into contracts in connection with
the performance of this engagement and shall return all records of the City that have been
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
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submitted to D&T for purposes of completion of the then current audit. The City shall pay
D&T for services actually rendered and expenses incurred up to the effective date of
termination and D&T shall continue to provide the City with services requested by the
City and in accordance with this engagement up to the effective date of termination. D&T
shall not be entitled to lost or anticipated profits should the City choose to exercise its option
to terminate.
D&T may terminate this engagement at any time, immediately upon written notice to the
City if D&T determines that the performance of any part of the services under this
engagement letter would be in conflict with law, or applicable independence or
professional rules or standards. In such case, the City shall compensate D&T under the
engagement letter for services provided and expenses incurred up to and including the
effective date of termination.
10. INDEMNIFICATION / LIABILITY. D&T SHALL INDEMNIFY AND HOLD THE CITY
AND ITS OFFICERS, AGENTS AND EMPLOYEES HARMLESS FROM AND AGAINST
ALL LIABILITY, EXPENSE, INCLUDING REASONABLE DEFENSE COSTS AND
REASONABLE LEGAL FEES, AND CLAIMS FOR DAMAGES, IN EACH CASE
SOLELY FOR BODILY INJURY, DEATH OR DAMAGE TO REAL OR TANGIBLE
PERSONAL PROPERTY, TO THE EXTENT DIRECTLY AND PROXIMATELY
CAUSED BY THE NEGLIGENCE OR WILLFUL MISCONDUCT OF D&T WHILE
ENGAGED IN THE PERFORMANCE OF SERVICES HEREUNDER; PROVIDED,
HOWEVER, THAT IF THERE ALSO IS FAULT ON THE PART OF THE CITY OR ANY
ENTITY OR INDIVIDUAL INDEMNIFIED HEREUNDER OR ANY ENTITY OR
INDIVIDUAL ACTING ON THE CITY'S BEHALF, THE FOREGOING
INDEMNIFICATION SHALL BE ON A PROPORTIONATE RESPONSIBILITY BASIS.
ACCORDINGLY, THE CITY SHALL NOTIFY D&T PROMTLY, IN WRITING, OF ANY
CLAIM OR ACTION FOR WHICH INDEMNITY SHALL BE SOUGHT IN CONNECTION
WITH THIS PARAGRAPH 10. ON SUCH NOTIFICATION, D&T SHALL PROMPTLY
ASSUME RESPONBILITY FOR AND DEFEND OR SETTLE ANY AND ALL CLAIMS
OR ACTIONS DESCRIBED ABOVE WITH COUNSEL OF ITS OWN CHOOSING. THE
CITY SHALL COOPERATE IN ALL REASONABLE RESPECTS WITH D&T IN
CONNECTIONS WITH ANY SUCH CLAIM.
11. Disclosure of Conflicts and Confidential Information. D&T hereby represents to the City that
to the knowledge of the engagement leader providing services hereunder, it has made full
disclosure of any existing conflicts of interest related to D&T's services under this
engagement. In the event that any conflicts of interest arise after the Effective Date, D&T
hereby agrees promptly to make full disclosure to the City. D&T further agrees that it shall
treat all information provided to it by the City as confidential and shall not disclose any
such information to a third party without the prior written approval of the City.
Notwithstanding the foregoing, the City hereby consents to D&T disclosing such
information (1) to its subcontractors, whether located within or outside of the United States,
that are providing services in connection with this engagement and who have agreed to be
bound by confidentiality obligations similar to those in this paragraph; (2) as may be
required by law, regulation, judicial or administrative process, or in accordance with
City of Fort Worth _ Deloitte & Touche, LLP
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applicable professional standards or rules, or in connection with litigation pertaining hereto;
or (3) to the extent such information (i) shall have otherwise become publicly available
(including, without limitation, any information filed with any governmental agency and
available to the public) other than as the result of a disclosure in breach hereof, (ii) becomes
available to D&T on a non -confidential basis from a source other than the City that D&T
believes is not prohibited from disclosing such information to D&T by obligation to the
City, (iii) is known by D&T prior to its receipt from the City without any obligation of
confidentiality with respect thereto, or (iv) is developed by D&T independently of any
disclosures made by the City to D&T of such information. In satisfying its obligations
under this paragraph, D&T shall maintain the City's trade secrets and proprietary or
confidential information in confidence using at least the same degree of care as it employs
in maintaining in confidence its own trade secrets and proprietary or confidential
information, but in no event less than a reasonable degree of care.
12. Right to Review. D&T agrees that the City shall, until the expiration of three (3) years after
conclusion of any audit commenced during the said three years, have access to and the right
to examine at reasonable times any directly pertinent books and records of D&T involving
transactions relating to this engagement at no additional cost to the City. D&T agrees to
provide the City with copies of all such documentation at D&T's sole cost and expense.
The City shall give D&T reasonable advance notice of intended reviews. The City's right
above shall be limited only to those books and records that are necessary to substantiate
D&T's invoices hereunder and D&T shall have the right to redact such books and records to
the extent it deems necessary to protect its proprietary and confidential information and
address any privacy concerns.
13. Compliance with Laws. D&T agrees that in the performance of its obligations hereunder, it
will comply with all applicable federal, state and local laws, ordinances, rules and
regulations and that any work it produces in connection with this engagement will also
comply with all applicable federal, state and local laws, ordinances, rules and regulations.
14. Non-discrimination Covenant. D&T agrees that in the performance of its duties and
obligations hereunder, it shall not discriminate in the treatment or employment of any
individual or group of individuals on any basis prohibited by law.
15. Notices. Notices required pursuant to the provisions of this engagement shall be
conclusively determined to have been delivered when (1) hand -delivered to the other
party, its agents, employees, servants or representatives, (2) delivered by facsimile with
electronic confirmation of the transmission, or (3) received by the other party by United
States Mail, registered, return receipt requested, addressed as follows:
uditor
City of Fort Worth.o f
Terry Holderman City
1000 Throckmorton
Fort Worth TX 76102-6311
Facsimile: (817) 392-6133
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
Page 22 of 25
Deloitte and Touche LLP
Attn: Terry Kile
201 Main Street, Suite 1501
Fort Worth, Texas 76102
Facsimile: 817-336-2013
16. Governing Law / Venue. This engagement shall be construed in accordance with the laws
of the State of Texas. In the event that the parties do not agree to resolve a Dispute through
binding arbitration, venue for any action, whether real or asserted, at law or in equity,
brought pursuant to this engagement shall lie in state courts located in Tarrant County,
Texas or the United States District Court for the Northern District of Texas, Fort Worth
Division.
17. Review of Counsel. The parties acknowledge that each party and its counsel have reviewed
and revised this engagement letter and that the normal rules of construction to the effect that
any ambiguities are to be resolved against the drafting party shall not be employed in the
interpretation of this engagement letter or exhibits hereto.
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2013 Independent Audit Engagement
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APPENDIX G
DISPUTE RESOLUTION PROVISION
This Appendix G is part of the engagement letter dated August 20, 2013 between Deloitte &
Touche LLP and City of Fort Worth.
This Dispute Resolution Provision sets forth the dispute resolution process and procedures
applicable to the resolution of Disputes and shall apply to the fullest extent of the law, whether in
contract, statute, tort (such as negligence), or otherwise.
Mediation: All Disputes shall be first submitted to nonbinding confidential mediation by written
notice to the parties, and shall be treated as compromise and settlement negotiations under the
standards set forth in the Federal Rules of Evidence and all applicable state counterparts,
together with any applicable statutes protecting the confidentiality of mediations or settlement
discussions. Mediation shall be held in Tarrant County, Texas, and the parties shall make a good
faith effort to agree on a mediator. If the parties cannot agree on a mediator, the International
Institute for Conflict Prevention and Resolution ("CPR"), at the written request of a party, shall
designate a mediator.
Arbitration Procedures: If a Dispute has not been resolved within 90 days after the effective date
of the written notice beginning the mediation process (or such longer period, if the parties so
agree in writing), the mediation shall terminate and, upon written consent of an authorized
representative of both parties, the Dispute shall be settled by binding arbitration to be held in
Tarrant County, Texas. The arbitration shall be solely between the parties and shall be conducted
in accordance with the CPR Rules for Non -Administered Arbitration that are in effect at the time
of the commencement of the arbitration, except to the extent modified by this Dispute Resolution
Provision (the "Rules").
The arbitration shall be conducted before a panel of three arbitrators. Each of the City and
Deloitte & Touche LLP shall designate one arbitrator in accordance with the "screened"
appointment procedure provided in the Rules and the two party -designated arbitrators shall
jointly select the third in accordance with the Rules. No arbitrator may serve on the panel unless
he or she has agreed in writing to enforce the terms of the engagement letter (including its
appendices) to which this Dispute Resolution Provision is attached and to abide by the terms of
this Dispute Resolution Provision. Except with respect to the interpretation and enforcement of
these arbitration procedures (which shall be governed by the Federal Arbitration Act), the
arbitrators shall apply the laws of the State of Texas (without giving effect to its choice of law
principles) in connection with the Dispute. The arbitrators shall have no power to award punitive,
exemplary or other damages not based on a party's actual damages (and the parties expressly
waive their right to receive such damages). The arbitrators may render a summary disposition
relative to all or some of the issues, provided that the responding party has had an adequate
opportunity to respond to any such application for such disposition. Discovery shall be
conducted in accordance with the Rules.
All aspects of the arbitration shall be treated as confidential, as provided in the Rules. Before
making any disclosure permitted by the Rules, a party shall give written notice to all other parties
City of Fort Worth _ Deloitte & Touche, LLP
2013 Independent Audit Engagement
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and afford such parties a reasonable opportunity to protect their interests. Further, judgment on
the arbitrators' award may be entered in any court having jurisdiction.
Costs: Each party shall bear its own costs in both the mediation and the arbitration; however, the
parties shall share the fees and expenses of both the mediators and the arbitrators equally.
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M&C Review
COUNCIL ACTION: Approved on 9/14/2010
DATE: 9/14/2010 REFERENCE NO.: C-24442 LOG NAME:
CODE: C
TYPE:
NON- PUBLIC
CONSENT HEARING:
Page 1 of 2
Official site of the City of Fort Worth, Texas
FORT WORTI
13P10-0401 AUDIT
SERVICES MJ
NO
SUBJECT: Authorize a One -Year Contract in an Amount Up to $1,051,200.00 with Deloitte and
Touche, LLP, for Independent Audit Services for Fiscal Year 2010 Comprehensive
Annual Financial Report and Single Audits with Options to Renew the Contract for Up to
Four One -Year Periods
RECOMMENDATION:
It is recommended that the City Council authorize a one-year contract in an initial amount up to
$1,051,200.00 with Deloitte and Touche, LLP, for independent audit services for Fiscal Year 2010
Comprehensive Annual Financial Report and Single Audits with options to renew the contract for up to four
one-year periods.
DISCUSSION:
The City of Fort Worth (City) Internal Audit Department will use the professional services agreement with
Deloitte & Touche LLP (D&T) to serve as independent auditors for the City's financial statements to ensure
conformity with generally accepted accounting principles. D&T will examine the City's compliance with
procedures established by the City Charter and City Ordinances. D&T will also perform certain limited
procedures involving required supplementary information by the Governmental Accounting Standards
Board (GASB) as mandated by generally accepted auditing standards as set forth by the American Institute
of Certified Public Accountants and Government Auditing Standards.
The Purchasing Division issued a Request for Proposals (RFP) on April 7, 2010 soliciting qualified firms of
certified public accountant firms to audit the City's financial statements for Fiscal Years 2010, 2011, 2012,
2013 and 2014. The evaluation factors included past experience and performance on comparable
government engagements, specific implementation of GASB Statement No. 34, the quality of the firms'
professional personnel to be assigned to the engagement, the quality of personnel to be available for
technical consultation, the adequacy of the firms' proposed staffing plan, sampling techniques, analytical
procedures to be used on the engagement, contract costs, and M/WBE participation.
An evaluation panel was made up of representatives from the Financial Management Services Department
and the Internal Audit Department. Five proposals were received in response to the RFP. Proposals were
received from BKD LLP, Deloitte & Touche, LLP, Grant Thornton, KPMG LLP and Weaver and Tidwell
LLP. The recommended service provider, Deloitte & Touche LLP, was deemed the most qualified to
perform the services. The recommendation was presented to the Audit and Finance Advisory Committee on
July 28, 2010. The committee is in favor of this action.
ADVERTISEMENT - This RFP was advertised in the Fort Worth Star -Telegram on April 7, 2010, April 14,
2010, April 21, 2010 and April 28, 2010.
PRICE ANALYSIS - Fees under the recommended agreement are approximately 8.5 percent less than
those under the 2009 Agreement due to a reduction of estimated hours. Estimated hours decreased due to
the City's improved internal controls. Prices for each year's audit are estimated as follows:
http://apps.cfwnet.org/council packet/mc review.asp?ID=13916&councildate=9/14/2010 9/16/2013
M&C Review Page 2 of 2
Year Estimated Initial Estimated Estimated Total
Cost Contingency Cost
Funds
2010 $988,000.00 $63,200.00 $1,051,200.00
2011 $1,041,200.00 $60,000.00 $1,101,200.00
2012 $1,086,800.00 $60,000.00 $1,146,800.00
2013 $1,140,000.00 $60,000.00 $1,200,000.00
2014 $1,200,800.00 $50,000.00 $1,250,800.00
5 Year Total $5,456,800.00 $293,200.00 $5,750,000.00
ESTIMATED CONTINGENCY FUNDS — The estimated contingency fund dollars are based upon 450 — 480
additional audit hours for unanticipated issues that may arise.
AGREEMENT TERMS - Upon City Council's approval, the Agreement will begin upon execution and expire
September 30, 2011, unless terminated earlier in accordance with its terms.
RENEWAL OPTIONS - This Agreement may be renewed for up to four successive one-year terms at an
annual amount not to exceed $1,250,800.00 for each renewal year. This action does not require specific
City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's
obligation during each renewal term.
M/WBE - Deloitte and Touche, LLP, is in compliance with the City's M/WBE Ordinance by committing to 15
percent M/WBE participation. The City's goal on this project is 15 percent.
FISCAL INFORMATION/CERTIFICATION:
The Financial Management Services Director certifies that funds are available in the current operating
budget, as appropriated, of the General Fund. The Financial Management Services Director also certifies
that funds will be included in the City Manager's Proposed 2010-2011 Budget of the General Fund.
TO Fund/Account/Centers FROM Fund/Account/Centers
GG01 531200 0101000 $1,051,200.00
Submitted for Citv Manager's Office bv:
Originating Department Head:
Additional Information Contact:
ATTACHMENTS
Karen Montgomery (6222)
Darlene Allen (6132)
Jack Dale (8357)
Marilyn Jackson (2059)
http://apps.efwnet.org/council_packet/mc_review.asp?ID=1 3 9 1 6&couneildate=9/14/2010 9/16/2013