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HomeMy WebLinkAboutResolution Fort Worth Housing Finance Corporation (FWHFC) FWHFC-2016-10RESOLUTION NO. FWHFC-2016-10 A RESOLUTION RATIFYING THE ENGAGEMENT OF DELOITTE &TOUCHE LLP TO PERFORM AN AUDIT WHEREAS, the City Council of the City of Fort Worth (the "City") created the Fort Worth Housing Finance Corporation (the "Corporation") in 1979 pursuant to the Texas Housing Finance Corporation Act to facilitate the development of decent, safe quality, affordable, and accessible housing for low and moderate income City residents through lending and construction activities; WHEREAS, the Corporation is a public instrumentality of the City and its daily operations and activities are conducted for and on its behalf by City staff acting as borrowed servants; WHEREAS, the Corporation's operations and activities frequently involve consummation of financial transactions, execution of related documents, and keeping of associated records; WHEREAS, sound business practice dictates periodic auditing of financial and other records of any business enterprise to ensure accuracy and completeness of records and to identify any material weaknesses in the entity's financial and record -keeping practices; WHEREAS, in light of the relationship between the Corporation and the City and of the fact that the Corporation is classified as a "component unit" of the City for accounting purposes, a review of the records of the Corporation has historically been included as a part of the City's comprehensive annual financial report and single audit; WHEREAS, it has been determined that a separate audit of the records of the Corporation is advisable in order to better memorialize and reflect the status of the Corporation as a distinct entity existing separate and apart from the City for legal purposes; WHEREAS, the Corporation desires to engage the firm of Deloitte & Touche LLP ("Deloitte") to furnish necessary audit services and Deloitte is capable and willing to do so; WHEREAS, Deloitte requires certain personal information of individuals who execute audit engagement letters, including, but not limited to, social security numbers and home addresses; WHEREAS, David Cooke as City Manager of the City, has previously provided all such necessary information to Deloitte in connection with Deloitte's engagement to provide audit services to the City; RESOLUTION NO. FWHFC-2016-10 PAGE WHEREAS, the Board finds that the most efficient and expeditious manner to engage Deloitte to provide its services would be to authorize David Cooke to execute the audit engagement letter and any other necessary documents as a borrowed servant of the Corporation; WHEREAS, it was in the Corporation's best interest for Deloitte to commence its work on the audit prior to a Board meeting being scheduled, and David Cooke, acting in his capacity as a borrowed servant of the Corporation, executed the engagement letter so that Deloitte could begin its audit of the Corporation in a timely manner; and WHEREAS, the Board desires to ratify the engagement of Deloitte and Touche LLP to perform an audit for the Corporation, ratify the execution by David Cooke of the audit engagement letter on behalf of the Corporation, and ratify all actions taken and work performed on the audit. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE FORT WORTH HOUSING FINANCE CORPORATION THAT: The Board approves the engagement of Deloitte & Touche LLP ("DeLoitte") to complete an audit of the records of the Fort Worth Housing Finance Corporation (the "Corporation") for a total fee amount not to exceed $40,000.00 and further authorizes Deloitte's use of qualified subcontractors in conducting the audit; and 2. The Board authorizes David Cooke, as a borrowed servant, to execute and deliver any engagement letters or other documents for and on behalf of the Corporation that are necessary to engage Deloitte as auditor, provided, however, that Deloitte shall be required to report all of its findings directly to the Board; and 3. The Board ratifies and confirms any actions that have been taken to date to the extent such actions are consistent with Paragraphs 1 and 2 above, as the valid actions of the Corporation effective as of the date such actions were taken. 4. This Resolution takes effect from the date of its adoption. AND IT IS SO RESOLVED. Adopted February 2, 2016. FORT WORTH HOUSING FINANCE CORPORATION By: IL, ()J,.4 Salvador Espino, President