HomeMy WebLinkAboutContract 56219-EL2Forvis Mazars, LLP
14241 Dallas Parkway, Suite 1100
Dallas, TX 75254
P 972,702.8262 I F 972,702.0673
forvismazars.us
September 24, 2024
To the Honorable Mayor and
City Council Members of City of Fort Worth, Texas
200 Texas Street
Fort Worth, TX 76102
CSC No. 56219-EL2
forv,s mazars
We appreciate your selection of Forvis Mazars, LLP as your service provider and are pleased to confirm
the arrangements of our engagement in this contract. Within the requirements of our professional standards
and any duties owed to the public, regulatory, or other authorities, our goal is to provide you an Unmatched
Client Experience.
In addition to the terms set forth in this contract, including the detailed Scope of Services, our engagement
is governed by the following, incorporated fully by this reference:
•HIPAA Business Associate Agreement
•City of Fort Worth Vendor Services Agreement by and between City of Fort Worth and BKD, LLP,
assumed by Forvis Mazars, LLP on June 1, 2024, and identified as City Secretary Contract No.
56219. For the sake of clarity, in the event of conflict between the terms and conditions of this
contract and City Secretary Contract No. 56219, the terms of City Secretary Contract No. 56219
shall control.
Summary Scope of Services
As described in the attached Scope of Services, our services will include the following:
City of Fort Worth, Texas
•Audit Services for the City's Annual Comprehensive Financial Report for the year ended September
30,2024
•Compliance Audit in Accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the
Uniform Guidance) and the State of Texas Grant Management Standards (TxGMS)
•Agreed-upon procedure services related to Chapter X, Section 2 of the City Charter (Annual
Budget)
•Agreed-upon procedure services related to the Public Funds Investment Act, Chapter 2256, Texas
Government Code (Act)
•Agreed-upon procedure services related to Texas Commission on Environmental Quality (TCEQ)
•Agreed-upon procedure services related to Section 4(J) Water and Sewer System Revenue
Financing Program
•Agreed-upon procedure services related to Section 4(K) Water and Sewer System Revenue
Financing Program
You agree to assume full responsibility for the substantive outcomes of the contracted services and for any
other services we may provide, including any findings that may result.
You also acknowledge these services are adequate for your purposes, and you will establish and monitor
the performance of these services to ensure they meet management's objectives. All decisions involving
management responsibilities related to these services will be made by you, and you accept full responsibility
for such decisions.
Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited
City of Fort Worth, Texas
September 24, 2024
Page 2
We understand you have designated a management-level individual(s) to be responsible and accountable
for overseeing the perFormance of nonattest services, and you have determined this individual is qualified
to conduct such oversight.
As required by Chapter 2271, Texas Government Code, we represent that we do not boycott Israel and will
not boycott Israel through the term of this engagement. For purposes of this representation, "boycott Israel"
means refusing to deal with, terminating business activities with, or otherwise taking any action that is
intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with
a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action
made for ordinary business purposes.
Engagement Fees
Our fees will be based on time, skill, and resources, including our proprietary information required to
complete the services. Total compensation for all services associated with the annual audit and agreed
upon procedures that are provided under the City of Fort Worth Vendor Services Agreement for the fiscal
year ended September 30, 2024 shall not exceed $785,000.
Assistance with New Standards
Assistance and additional time as a result of the adoption of the following new standards are not included
within our standard engagement fees. These fees will be based on time expended and will vary based on
the level of assistance and procedures required.
Statement on Auditing Standards (SAS) 145, Understanding the Entify and ifs Environment and
Assessing fhe Risks of Material Misstatemenf, and SAS 148, Amendmenf to AU-C Section 935,
Compliance Audits
SAS 145 enhances the requirements and guidance related to obtaining an understanding of the entity's
system of internal control and assessing control risk and the guidance that addresses the economic,
technological, and regulatory aspects of the markets and environment in which entities and audit firms
operate. SAS 148 incorporates changes in SAS 145 into the compliance audit standards required to be
followed in a single audit.
The above audit standards are expected to increase our audit time particularly for single audits with regard
to the requirement to identify risks associated with each direct and material compliance requirement for
each major program and obtaining sufficient audit evidence to address those risks.
Assistance and additional time as a result of the adoption of this new standard is not included within our
standard engagement fees. These fees will be based on time expended and will vary based on the level of
assistance and procedures required.
We will consult with you during the audit should we believe additional time will be necessary.
Contract Agreement
City of Fort Worth, Texas
September 24, 2024
Page 3
Please sign and return this contract to indicate your acknowledgment of, and agreement with, the
arrangements for our services including our respective responsibilities.
Forvis Mazars, LLP
Acknowledged and agreed to as it relates to the entire contract, including the Scope of Services, HIPAA
Business Associate Agreement, and City of Fort Worth Vendor Services Agreement, on behalf of the
City of Fort Worth, Texas.
BY Reginald Zeno (Sep 25, 202410:05 CDT)
Reginald Zeno, CFO
DATE
David Coo , ity Manager
DATE 9P/2D v/
City of Fort Worth, Texas
September 24, 2024
Page 4
Scope of Services — Audit Services
We will audit the governmental activities, the business-type activities, the aggregate discretely presented
component units, each major fund, and the aggregate remaining fund information and related disclosures,
which collectively comprise the basic financial statements for the following entity:
City of Fort Worth, Texas as of and for the year ended September 30, 2024
The audit has the following broad objectives:
• Obtaining reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error
• Expressing opinions on the financial statements
• Issuing a report on your internal control over financial reporting and compliance and other matters
based on the audit of your financial statements in accordance with Government Auditing Standards
• Expressing an opinion on your compliance with the types of compliance requirements described in
the OMB Compliance Supplement and the State of Texas Grant Management Standards (TxGMS)
that could have a direct and material effect to each of your major federal and state award programs
in accordance with the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance) and the TxGMS
• Issuing a report on your internal control over compliance in accordance with the Uniform Guidance
and TxGMS
• Issuing a report on your schedule of expenditures of federal and state awards
You have informed us that the audited financial statements are expected to be presented along with
management's Annual Comprehensive Financial Report. Management is responsible for the other
information (introductory and statistical sections) included in the Annual Comprehensive Financial Report.
The other information comprises the Annual Comprehensive Financial Report but does not include the
financial statements and our auditor's report thereon. Our opinion on the financial statements will not cover
the other information, and we will not express an opinion or any form of assurance thereon. In connection
with our audit of the financial statements, our responsibility is to read the other information and consider
whether a material inconsistency exists between the other information and the financial statements, or
whether the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report.
We will also express an opinion on whether the combining and individual fund financial statements and
schedules, schedule of expenditures of federal awards, and schedule of expenditures of state awards
("supplementary information") are fairly stated, in all material respects, in relation to the financial statements
as a whole.
We will complete the auditee portion of the Form SF-SAC (Data Collection Form) through the Federal Audit
Clearinghouse. We will not make the submission on your behalf. You will review a draft(s) of the submission
prior to transmission and agree that you are solely responsible for approving the final draft for transmission
as well as for the auditee submission and certification.
We will also provide you with the following nonattest services:
• Clerical-only assistance with printing and binding of annual comprehensive financial report and
Single Audit Report.
City of Fort Worth, Texas
September 24, 2024
Page 5
You agree to assume all management responsibilities and to oversee the nonattest services we will provide
by designating an individual possessing suitable skill, knowledge, and/or experience. You acknowledge
that nonattest services are not covered under Government Auditing Standards. You are responsible for:
• Making all management decisions and perForming all management functions
• Evaluating the adequacy and results of the services performed
• Accepting responsibility for the results of such services
. Designing, implementing, and maintaining internal controls, including monitoring ongoing activities
Dan Barron, Partner, is responsible for supervising the engagement and authorizing the signing of the report
or reports.
We will issue written reports upon completion of our audits, addressed to the following parties:
Entity Name Party Name
City of Fort Worth, Texas The Honorable Mayor and Members of City
Council
You are responsible to distribute our reports to other officials who have legal oversight authority or those
responsible for acting on audit findings and recommendations, and to others authorized to receive such
reports.
The following apply for the audit services described above:
Our We will conduct our audit in accordance with auditing standards generally
Responsibilities accepted in the United States of America (GAAS), the standards applicable to
financial audits contained in Government Auditing Standards issued by the
Comptroller General of the United States and the Uniform Guidance. Those
standards require that we plan and perform:
• The audit of the financial statements to obtain reasonable rather than
absolute assurance about whether the financial statements are free of
material misstatement, whether caused by fraud or error
• The audit of compliance to obtain reasonable rather than absolute assurance
about whether the entity complied with the types of compliance requirements
described in the OMB Compliance Supplement and the TxGMS that could
have a direct and material effect on each major federal and state award
program
• We will make reference to the audit of Employees' Retirement Fund of the
City of Fort Worth, Fort Worth Housing Finance Corporation, and Terrell
Homes, Ltd in our report on your financial statements
We will exercise professional judgment and maintain professional skepticism
throughout the audit.
We will identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion.
We will obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances.
City of Fort Worth, Texas
September 24, 2024
Page 6
We will evaluate the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as
well as evaluate the overall presentation of the financial statements, including the
disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We will also conclude, based on audit evidence obtained, whether there are
conditions or events, considered in the aggregate, that raise substantial doubt
about the entity's ability to continue as a going concern for a reasonable period
of time.
We will identify and assess the risks of material noncompliance, whether due to
fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the
entity's compliance with compliance requirements subject to audit and performing
such other procedures as the auditor considers necessary in the circumstances.
We will obtain an understanding of the entity's internal control over compliance
relevant to the audit in order to design audit procedures that are appropriate in
the circumstances and to test and report on internal control over compliance in
accordance with the Uniform Guidance and TxGMS but not for the purpose of
expressing an opinion on the effectiveness of the entity's internal control over
compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance, regarding,
among other matters, the planned scope and timing of the audit and any
significant deficiencies and material weaknesses in internal control over
compliance that the auditor identified during the audit.
Limitations & Reasonable assurance is a high level of assurance but is not absolute assurance
Fraud and therefore is not a guarantee that an audit that is planned and conducted in
accordance with GAAS will always detect a material misstatement or material
noncompliance with federal award programs when it exists. Misstatements,
including omissions, can arise from fraud or error and are considered material if,
there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial
statements. 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.
The risk of not detecting a material misstatement or material noncompliance
resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Noncompliance with compliance requirements is
considered material if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the
report on compliance about the entity's compliance with the requirements of the
federal programs as a whole.
Our understanding of internal control is not for the purpose of expressing an
opinion on the effectiveness of your internal control. However, we will
communicate to you in writing any significant deficiencies or material weaknesses
in internal control relevant to the audit of the financial statements that we identify
during the audit.
City of Fort Worth, Texas
September 24, 2024
Page 7
We are available to perForm additional procedures with regard to fraud detection
and prevention at your request, subject to completion of our normal engagement
acceptance procedures. The actual terms and fees of such an engagement would
be documented in a separate contract to be signed by you and Forvis Mazars.
Opinion Circumstances may arise in which our report may differ from its expected form
and content based on the results of our audit. Depending on the nature of these
circumstances, it may be necessary for us to modify our opinion, add an
emphasis-of-matter paragraph or other-matter paragraph(s) to our auditor's
report, or if necessary, decline to express an opinion or withdraw from the
engagement.
If we discover conditions that may prohibit us from issuing a standard report, we
will notify you. In such circumstances, further arrangements may be necessary to
continue our engagement.
Your Management and, if applicable, those charged with governance acknowledge
Responsibilities and understand their responsibility for the accuracy and completeness of all
information provided and for the following:
Audit Support — to provide us with:
o Unrestricted access to persons within the entity or within components of
the entity (including management, those charged with governance, and
component auditors) from whom we determine it necessary to obtain
audit evidence
o Information of which you are aware that is relevant to the preparation and
fair presentation of the financial statements, including access to
information relevanf to disclosures
o Information about events occurring or facts discovered subsequent to the
date of the financial statements, of which management may become
aware, that may affect the financial statements
o Information about any known or suspected fraud affecting the entity
involving management, employees with significant role in internal control,
and others where fraud could have a material effect on the financials
o Identification and provision of report copies of previous audits, attestation
engagements, or other studies that directly relate to the objectives of the
audit, including whether related recommendations have been
implemented
o Additional information that we may request for the purpose of the audit
Internal Control and Compliance — for the:
o Design, implementation, and maintenance of internal control relevant to
compliance with laws and regulations and the preparation and fair
presentation of financial statements that are free from material
misstatement, whether due to fraud or error
o Alignment of internal control to ensure ti�at appropriate goals and
objectives are met; that management and financial information is reliable
and properly reported; and that compliance with and identification of the
laws, regulations, contracts, grants, or agreements (including any federal
award programs) applicable to the entity's activities is achieved
o Remedy, through timely and appropriate steps, of fraud and
noncompliance with provisions of laws, regulations, contracts, or other
agreements reported by the auditor
o Establishment and maintenance of processes to track the status and
address findings and recommendations of auditors
City of Fort Worth, Texas
September 24, 2024
Page 8
Accounting and Reporting — for the:
o Maintenance of adequate records, selection and application of
accounting principles, and the safeguard of assets
o Adjustment of the financial statements to correct material misstatements
and confirmation to us in the representation letter that the effects of any
uncorrected misstatements aggregated by us are immaterial, both
individually and in the aggregate, to the financial statements taken as a
whole
o Preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United
States of America
o Inclusion of the auditors' report in any document containing financial
statements that indicates that such financial statements have been
audited by us
o Distribution of audit reports to any necessary parties
The results of our tests of compliance and internal control over financial reporting
performed in connection with our audit of the financial statements may not fully
meet the reasonable needs of report users. Management is responsible for
obtaining audits, examinations, agreed-upon procedures, or other engagements
that satisfy relevant legal, regulatory, or contractual requirements or fully meet
other reasonable user needs.
Required Accounting principles generally accepted in the United States of America provide
Supplementary for certain required supplementary information ("RSI") to accompany the basic
Information financial statements. We understand the following RSI will accompany the basic
financial statements:
1. ManagemenYs Discussion and Analysis ("MD&A")
2. Budgetary comparison
3. Pension and Other Postemployment Benefit information
Such information is the responsibility of management and, although not a part of
the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for
placing the basic financial statements in an appropriate operational, economic,
or historical context.
Management is responsible for the fair presentation of the RSI. As part of our
engagement, we will apply certain limited procedures to the RSI in GAAS. These
limited procedures will consist of inquiries of management regarding the methods
of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements.
We will not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Supplementary With regard to any supplementary information that we are engaged to report on:
Information
• Management is responsible for its preparation in accordance with applicable
criteria
City of Fort Worth, Texas
September 24, 2024
Page 9
Management will provide certain written representations regarding the
supplementary information at the conclusion of our engagement
Management will include our report on this supplementary information in any
document that contains this supplementary information and indicates we
have reported on the supplementary information
Management will make the supplementary information readily available to
intended users if it is not presented with the audited financial statements
Such information is:
• Presented for the purpose of additional analysis of the financial statements
• Not a required part of the financial statements
• The responsibility of management
• Subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and
reconciling such information directly to the accounting and other records used
to prepare the financial statements or to the financial statements themselves,
and other additional procedures in accordance with GAAS
Written As part of our audit process, we will request from management and, if applicable,
Confirmations those charged with governance written confirmation acknowledging certain
Required responsibilities outlined in this contract and confirming:
• The availability of this information
• Certain representations made during the audit for all periods presented
• The effects of any uncorrected misstatements, if any, resulting from errors or
fraud aggregated by us during the current engagement and pertaining to the
latest period presented are immaterial, both individually and in the aggregate,
to the financial statements taken as a whole
Peer Review Report Government Auditing Standards require that we provide you with a copy of our
most recent external peer review report and any letter of comment, and any
subsequent peer review reports and letters of comment received during the
period of the contract, upon request. If you would like a copy, please request from
your engagement executive.
City of Fort Worth, Texas
September 24, 2024
Page 10
Agreed-Upon Procedure Services
We will apply the procedures (subject to final approval by City management) regarding the City of Fort
Worth's Chapter X, Section 2 of the City Charter (Annual Budget) compliance report, the Public Fund
Investment Act, Chapter 2256, Texas Government Code (Act) compliance report, Texas Commission of
Environmental Quality (TCEQ) compliance report, Section 4(J) Water and Sewer System Revenue
Financing Program compliance report and Section 4K) Water and Sewer System Revenue Financing
Program compliance report as of and for the year ended September 30, 2024. The sufficiency of these
requested procedures is solely the responsibility of the specified parties listed above. Consequently, we
make no representation regarding the sufficiency of the procedures for the purpose for which the report has
been requested or for any other purpose.
Because we have not been engaged to conduct an examination or review, we will not express an opinion
or conclusion, respectively, on the reports listed above. In addition, we have no obligation to perform any
procedures beyond those approved by City management and provided at a later date as an addendum to
this contract.
Dan Barron, Partner, is responsible for supervising the engagement and authorizing the signing of the report
or reports.
We will issue written reports summarizing the procedures perFormed and the results of those procedures to
the following:
Entity Name
City of Fort Worth, Texas
Party Name
The Honorable Mayor and Members of City
Council
The reports are intended solely for the information and use of the specified parties and are not intended
to be and should not be used by anyone other than these specified parties.
The following apply for the agreed-upon procedure services described above:
Our We will conduct our agreed-upon procedures engagement in accordance with
Responsibilities attestation standards established by the American Institute of Certified
Public Accountants.
Limitations & Our engagement will not include a detailed examination of all transactions and
Fraud cannot be relied upon to disclose misstatements that might exist due to error,
fraud, and illegal acts. However, we will inform you of any such matters, if
material, that come to our attention.
You accept that these procedures are not a substitute for managemenYs
responsibility to ensure controls are in place to prevent and detect theft and all
other forms of fraud and illegal acts. Therefore, you agree we are not responsible
for the cost of damages or any liability arising from errors or irregularities, fraud,
defalcations, or any other form of noncompliance or theft, caused by current or
former employees, directors, owners, or third parties.
Report If, for any reason, we are unable to complete our procedures, we may decline to
issue a report as a result of this engagement.
City of Fort Worth, Texas
September 24, 2024
Page 11
Your The management of the City is responsible for the following:
Responsibilities
• Proper recording of transactions and preparation of financial statements
• Establishing and maintaining effective internal control over financial
reporting
• Setting the proper tone
• Creating and maintaining a culture of honesty and high ethical
standards
• Establishing appropriate controls to prevent, deter, and detect fraud and
illegal acts
• Identifying and ensuring compliance with laws and regulations
applicable to its activities
• Establishing and maintaining effective internal control over compliance
• Implementing and monitoring controls
Written Assertions To facilitate our engagements, management is responsible for providing a written
assertion about the measurement or evaluation of the subject matter against the
criteria, supplying us with all necessary information, and for allowing us access
to personnel to assist in perForming our services. It should be understood that
management is responsible for the accuracy and completeness of these items,
for the subject matter and the written assertions referred to above, and for
selecting and determining the appropriateness of the criteria.
At the conclusion of our engagements, management will provide to us a letter
confirming the availability of this information, the written assertions, certain
representations made during the engagements, and acknowledging certain
responsibilities outlined in this contract.
City of Fort Worth, Texas
September 24, 2024
Page 12
Attachment A — Agreed-Upon Procedures
Chapter X, Section 2 of the City Charter (Annual Budget)
The procedures that we will perForm are as follows:
1. Obtain copies of the City Council agendas and minutes for August and September 2024 and read
the ordinances for the following:
a. The date of the City Council meeting in which a public hearing was first held on the
proposed budget for the year ended September 30, 2025.
b. The date of the City Council meeting in which a public hearing was first held on the
proposed ad valorem tax rate for the year ended September 30, 2025.
c. The date the ad valorem tax levy ordinance was first considered for approval by City
Council; and
d. The date the Annual Appropriations Ordinance was first considered for approval by City
Council.
e. Determine that the date of item "a" above is different than the dates of items "c" and "d".
2. Obtain and read the Fort Worth Star-Telegram between August and September 2024 when the
notice of hearings for the Annual Budget and ad valorem tax rate was published for the year ended
September 30, 2025.
3. Obtain and read the Fort Worth Star Telegrams between September and October 2024 when the
caption of the Annual Appropriations Ordinance and ad valorem tax rate for the fiscal year ended
September 30, 2025 was published and was in accordance with the Annual Budget provision.
4. Obtain and read the Fort Worth Star-Telegrams between September and October 2024 for the
dates when the caption and penalty provision of the ad valorem tax ordinance for the fiscal year
ended September 30, 2025 were published in accordance of the Annual Budget provision.
5. Review the City of Fort Worth website and verify the final approved budget and full text of the
Annual Appropriations Ordinance and the ad valorem tax ordinance were posted to the City's
website and filed in the City Secretary's office and available for public inspection in accordance
with the Annual Budget provision.
City of Fort Worth, Texas
September 24, 2024
Page 13
Attachment B — Agreed-Upon Procedures
Public Funds Investment Act, Chapter 2256, Texas Government Code (the Act)
The procedures that we will perform are as follows:
1. Review the September 2024 City Council minutes and the City's Investment Policy in place as of
September 30, 2024, and determine the following:
a. That the investment policy was approved by City Council.
b. That the investment policy:
i. Was written
ii. Primarily emphasized the safety of principal and liquidity
iii. Addressed investment diversification, yield, and maturity
iv. Included:
1. A list of authorized investments
2. Maximum allowable stated maturity of any individual investment
3. Maximum dollar-weighted average maturity for pooled fund groups
4. Methods to monitor the market price of investments acquired
5. A requirement for settlement of all transactions, except investment pool
and mutual funds, on a delivery versus payment basis.
6. Procedures to monitor rating changes in investments.
v. Specified that bids for the certificate of deposits, if applicable, be solicited orally,
in writing, electronically or in any combination of these methods.
2. Review the City's Investment Policy in place as of September 30, 2024, and determine that the City
Council adopted a separate, written investment strategy for the funds under its control addressing
the following objectives:
a. Understanding the suitability of the investment to the financial requirements of the City
b. Reservation and safety of principal
c. Liquidity
d. Marketability if the need arises to liquidate the investment prior to maturity
e. Diversification of the investment portfolio
f. Yield
3. Review the September 2024 City Council minutes and determine that the City Council reviewed its
investment policy and investment strategy.
City of Fort Worth, Texas
September 24, 2024
Page 14
4. Review the City's Investment Policy in place as of September 30, 2024, and determine that the City
has designated one or more investment officers to be responsible for the investment of the City's
funds in compliance with the adopted investment policy.
5. Review the City's Investment Policy in place as of September 30, 2024, and determine that it states
if an investment officer has a personal business relationship with a business organization offering
to engage in an investment transaction with the City, they shall file a statement disclosing the
conflict of interest.
6. Select one person or business organization offering to engage in an investment transaction or
investment management with the City during the year ended September 30, 2024, and determine
that a written copy of the investment policy was presented.
7. Review the training completion certificates and determine that each of the City's investment
officers, the Treasurer, and Chief Financial Officer completed the required investment training
required by section 2256.008 of the Act.
8. Review the City's Investment Policy in place as of September 30, 2024, the investments listing,
and the City's quarterly investment reports and determine all investments were authorized under
sections 2256.009 through 2256.0205 of the Act.
9. Review the City's quarterly investment reports presented in City Council minutes and determine
that the Investment Officers prepared and submitted a quarterly report to the City Council
containing the following information:
a. Description of the investment positions of the City on the date of the report
b. Documentation that the report was prepared and signed by each Investment Officer of
the City
c. The beginning market value, ending market value and fully accrued interest of the
portfolio for the period of the report value
d. The book value and market value of each separately invested asset
e. The maturity of each invested asset with a maturity date
f. The fund or pooled fund group in the City for which each investment was acquired
g. Statement that the City's portfolio was in compliance with regards to the City's investment
policy and the Act
10. Review the Qualified Brokers list approved in the April 2024 Investment Committee minutes and
determine that the Investment Committee, at City Council designation, reviewed and adopted a list
of qualified brokers authorized to engage in investment activity with the City.
City of Fort Worth, Texas
September 24, 2024
Page 15
Attachment C — Agreed-Upon Procedures
Texas Commission on Environmental Quality (TCEQ)
The procedures that we will perForm are as follows:
1. Obtain the Local Government Financial Test Letter from Chief Financial Officer (Letter) prepared
by the City for the year ended September 30, 2024.
2. Agree the amount of current cost estimates relating to post closure and future closure costs to the
2024 closure and postclosure cost estimate tables provided by the City and the "Various
Environmental Cleanup of Hazardous Substances" liability to the 2023 pollution remediation liability
worksheet prepared by the City.
3. Review the City's Annual Comprehensive Financial Report for the year ended September 30, 2024
and note inclusion of applicable Governmental Accounting Standards Board (GASB) Statement
No. 18, Accounting for Municipal Solid Waste Landfill Closure and Postclosure Care Costs
disclosures.
4. Agree the sum of current cost estimates in the Bond Rating Indicator of Financial Strength section
of the Letter to the amount in Procedure 2 above.
5. Obtain copies of official statements for the most recent issuance of general obligation bonds,
special tax revenue bonds, water and sewer system revenue bonds, and drainage utility system
revenue bonds issued to City and agree the current bond rating, name of rating service and date
of maturity of bond to the Letter. In addition, agree the date of issuance of bond to the City's Annual
Comprehensive Financial Report for the year in which the obligation is issued.
6. Agree the Municipal solid waste under 30 TAC Chapter 330 and 40 CFR Part 258 in the Bond
Rating Indicator of Financial Strength section of the Letter to the amount in Procedure 2 above.
7. Agree the remaining items in environmental obligations assured by a financial test to demonstrate
financial assurance under commission regulations and the CFR or state equivalent rules to the
prior year letter.
8. Calculate the difference between the total annual revenues [total governmental funds revenues
plus enterprise funds operating revenues plus enterprise funds non-operating revenues (net) plus
internal service funds non-operating revenues (net)] and total annual expenditures [total
governmental funds expenditures, other than capital project funds expenditures, plus enterprise
funds operating expenses before depreciation plus enterprise funds non-operating expenses (net)
plus internal service funds non-operating expenses (net)] as defined in section 37.271 (1) (D) of
the Texas Administrative Code for the fiscal year ended September 30, 2024 and note whether the
City operated at a deficit (total annual revenues minus total annual expenditures) equal to 5.0°/o or
more of total annual revenues for the fiscal year ended September 30, 2024.
9. Recompute from the audited financial statements the amounts in Procedure 8 above, the
information included in Total Annual Revenue in the Bond Rating Indicator of Financial Strength in
the Letter referred to above and note whether such items are in agreement.
10. Review the City's Annual Comprehensive Financial Report and determine whether the City's
financial statements for the fiscal year were audited by an independent certified public accountant.
11. Review the independent certified public account report in Procedure 10 above and determine the
City tlid not receive an adverse opinion, disclaimer of opinion, or other qualified opinion from the
independent auditor auditing its financial statements for the fiscal year ended September 30, 2024.
City of Fort Worth, Texas
September 24, 2024
Page 16
Attachment D — Agreed-Upon Procedures
Section 4(J) Water and Sewer System Revenue Financing Program
The procedures that we will perform are as follows:
1. Per review of Section 4(J) of the City's Ordinance number 10968, obtain an understanding of the
types of insurance required to be maintained by the City for the System per Section 4(J) of the
Ordinance. The City is required to carry the following types of insurances: casualty, property, fire,
extended coverage, flood damage, use/occupancy, public liability, and property damage.
2. For each type of insurance described in number (1) above and based on review of the Risk
Management Letter of Documentation of the Insurance Program, obtain an understanding if such
insurance is purchased commercially or if the City is self-insured.
3. For all policies for which the City is purchasing commercial insurance coverage, review supporting
documentation including purchase orders, the Insurance Purchase Authorization form, and Mayor
and Council Communication, and determine that the premium covering the period September 30,
2024 was paid.
4. Obtain the City of Fort Worth Letter — Documentation of Insurance for the City of Fort Worth Self-
Funded Insurance Program from the City Risk Manager for the fiscal year October 1, 2023 —
September 30, 2024. The letter lists the areas of coverage for which the City was self-insured
against risks. Determine the City is self-insured against the following risks: general liability and/or
auto liability insurance.
City of Fort Worth, Texas
September 24, 2024
Page 17
Attachment E — Agreed-Upon Procedures
Section 4(K) Water and Sewer System Revenue Financing Program
The procedures that we will perform are as follows:
1. Obtain a copy of the Water Master ordinance (Master Ordinance) and the City's policy "Payments
from Water and Sewer Fund to Other Funds" (the Policy).
2. Using final audited balances from the City of Fort Worth Annual Comprehensive Financial Report
for the year ended September 30, 2024, perform the following:
a. Calculate Net Revenues for the Water and Sewer Fund as defined in the Master Ordinance
b. Calculate Excess Pledged Revenues as defined in the Master Ordinance and the Policy.
c. Calculate Adjusted Pledged Revenues by:
Deducting Other Non-Cash Operating Expenses: changes from the prior year in
compensated absences, net pension liability, OPEB liability balances, and
deferred outflows and inflows related to Pension and OPEB in the Water and
Sewer fund, and
ii. Adding transfers into the Water and Sewer fund to the Excess Pledged Revenues
calculated in 2.b. above
d. Calculate Adjusted Excess Pledged Revenues by deducting the amount of transfers from
Water and Sewer operating funds to internally funded capital project funds from the
Adjusted Pledged Revenues calculated in 2.c. above.
3. Provide copies of our calculations to the Financial Management Services Department for their
certification as required by the policy initially adopted by M&C G-18879 approved on November 15,
2016.
City of Fort Worth, Texas
September 24, 2024
Page 18
HIPAA Business Associate Agreement
This Business Associate Agreement ("BAA") is entered into by and 2. Safeguards. Business Associate shall not use or disclose PHI
between Forvis Mazars, LLP (hereinafter referred to as "Business other than as permitted or required by the BAA or as required
Associate") and the City of Fort Worth, Texas (hereinafter referred by law.
to as "Covered Entity").
RECITALS
Business Associate provides services to Covered Entity under this
contract (the "ContracY'), and Covered Entity wishes to disclose
certain information to Business Associate pursuant to the terms of
such Contract, some of which may constitute Protected Health
Information ("PHI").
The purpose of this BAA is to comply with all applicable federal and
state laws governing the privacy of PHI. As used herein, the Privacy
Rule and the Security Rule are each deemed to include the
amendments thereto, collectively referred to as "HIPAA/HITECH
Final Omnibus Rule," that are included in the:
• Modifications to the Health Insurance Portability and
Accountability Act of 1996 ("HIPAA") Privacy, Security,
Enforcement, and Breach Notification Rules Under the
Health Information Technology for Economic and Clinical
Health Act (the "HITECH AcY') and the Genetic Information
Nondiscrimination Act
• Other Modifications to the HIPAA Rules
• Final Rule (the "Omnibus Rule"), 78 Fed. Reg. 5565
2.1. Business Associate shall establish and maintain
appropriate safeguards and shall comply with the Security
Rule with respect to electronic PHI ("ePHI") to prevent the
use or disclosure of such ePHI other than as provided for
by the Contract including this BAA.
2.2. To the extent the Business Associate is to carry out one
or more of Covered Entity's obligation(s) under Subpart E
of 45 CFR Part 164, comply with the requirements of
Subpart E that apply to the Covered Entity in the
performance of such obligation(s).
3. Subcontracts. In accordance with the requirements of the
Privacy Rule and the Security Rule, Business Associate shall
ensure any subcontractors that create, receive, maintain, or
transmit PHI on behalf of Business Associate agree to the same
restrictions, conditions, and requirements that apply to the
Business Associate with respect to such information.
4. Obligations of Covered Entity. Covered Entity shall obtain
any consent or authorization that may be required by HIPAA,
or applicable state law, prior to furnishing Business Associate
with PHI, including ePHI. Covered Entity shall notify Business
Associate of:
Notwithstanding the terms of this or any other agreement between
Covered Entity and Business Associate, Business Associate shall
comply with all of its statutory and regulatory obligations stated
under the HIPAA/HITECH Final Omnibus Rule. The terms stated
herein shall have the same definitions as provided in HIPAA.
In consideration of the mutual promises below and the exchange of
information pursuant to this BAA, the parties agree as follows:
1. Permitted Uses and Disclosures. Except as described in the
enumerated subparagraphs below, Business Associate shall
not use or disclose PHI received from Covered Entity or created
on behalf of Covered Entity. Exceptions:
1.1. As reasonably necessary to provide the services in the
Contract;
1.2. As otherwise permitted or required by this BAA;
1.3. As required by law; and
1.4. For the proper management and administration of
Business Associate's business and to disclose PHI in
connection with such management and administration,
and to carry out the legal responsibilities of the Business
Associate, provided Business Associate obtains
reasonable assurances from the recipient that the PHI
shall be held confidentially and used or further disclosed
only as required by law or for the purpose for which it was
disclosed to the recipient, and Business Associate
requires the recipient to notify it of any instances of which
it is aware in which the confidentiality of the PHI has been
breached.
4.1. Any limitation(s) in the Covered Entity's notice of privacy
practices under 45 CFR 164.520, to the extent that such
limitation may affect Business Associate's use or
disclosure of PHI;
4.2. Any changes in, or revocation of, the permission by an
individual to use or disclose his or her PHI, to the extent
that such changes may affect Business Associate's use
or disclosure of PHI; and
4.3. Any restriction on the use or disclosure of PHI that
Covered Entity has agreed to or is required to abide by
under 45 CFR 164.522, to the extent that such restriction
may affect Business Associate's use or disclosure of PHI.
Covered Entity shall not request Business Associate to use or
disclose PHI in any manner that would not be permissible under
Subpart E of 45 CFR Part 164 if done by Covered Entity.
Covered Entity shall provide to Business Associate only the
minimum PHI necessary to perform the services set forth in a
Contract.
5. Reporting, Notification, and Mitigation.
5.1. Reporting. Business Associate shall notify Covered Entity
of any use or disclosure of PHI not provided for by the
BAA of which it becomes aware, including breaches of
unsecured PHI as required at 45 CFR 164.410, and any
security incident of which it becomes aware, provided that
with respect to Unsuccessful Security Incidents (as
defined below), Business Associate shall report to
Covered Entity any such Unsuccessful Security Incidents
that are material to the protection of Covered Entity's PHI.
For purposes of this Business Associate Agreement, the
City of Fort Worth, Texas
September 24, 2024
Page 19
term "Unsuccessful Security IncidenY' shall mean any
security incident that does not result in any unauthorized
access, use, disclosure, modification, or destruction of
ePHI or any interference with system operations in
Business Associate's information system.
5.2. Notification. To assist Covered Entity in fulfilling its
responsibility to notify individuals and others of a breach
involving Unsecured PHI as required by HIPAA and
applicable state law, the notification shall include, to the
greatest extent reasonably possible:
i. Each individual whose unsecured PHI was subject
to the breach; and
ii. Any other available information Covered Entity is
required to include in its legally required notification
to individual(s) or others.
5.3. Mitigation. Business Associate shall mitigate, to the extent
practicable, any harmful effect that is known to Business
Associate of a use or disclosure of PHI by Business
Associate in violation of the requirements of this BAA.
6. Term and Termination.
6.1. Term. The Term of this BAA shall be effective as of the
last date signed and shall terminate without any further
action of the parties upon the expiration or termination of
the Contract or on the date Covered Entity terminates for
cause as authorized in paragraph 6.2 of this section,
whichever is sooner.
6.2. Termination for Cause. Covered Entity may terminate this
BAA if Business Associate has violated a material term of
the BAA and Business Associate has not cured the
breach or ended the violation within the time specified by
Covered Entity.
6.3. Obligations of Business Associate Upon Termination.
Upon termination of this BAA for any reason, Business
Associate, with respect to PHI received from Covered
Entity, or created, maintained, or received by Business
Associate on behalf of Covered Entity, shall:
i. Retain only that PHI which is necessary for Business
Associate to continue its proper management and
administration or to carry out its legal
responsibilities;
ii. Return to Covered Entity or destroy the remaining
PHI that the Business Associate stiil maintains in
any form;
by Business Associate for its proper management
and administration or to carry out its legal
responsibilities.
6.4. Survival. The obligations of Business Associate under this
section shall survive the termination of this BAA.
7. Designated Record Set. To the extent Business Associate
maintains PHI in a Designated Record Set, Business Associate
shall:
7.1. Make available PHI in a Designated Record Set to the
Covered Entity as necessary to satisfy Covered Entity's
obligations under 45 CFR 164.524; and
7.2. Incorporate any amendments or corrections to PHI at the
request of Covered Entity in accordance with 45 CFR
164.526, or take other measures as necessary to satisfy
Covered Entity's obligations under 45 CFR 164.526.
8. Accounting of Disclosures. Business Associate shall
maintain and make available the information required to
provide an accounting of disclosures to the Covered Entity as
necessary to satisfy Covered Entity's obligations under 45 CFR
164.528.
9. Access to Records. Business Associate shall make its internal
practices, books, and records available to the Secretary of
Health and Human Services for purposes of determining
compliance with the HIPAA Rules.
10. Insurance. Business Associate shall maintain insurance
coverage in form and amount necessary to cover data loss
and/or damage or the unauthorized disclosure and/or
fraudulent use of data. Upon request, Business Associate shall
provide Covered Entity with a certificate of insurance
evidencing the coverage.
11. Privilege. No statutory or common law privilege, including
privileges established or recognized by the attorney-client,
accountant-client, or other legal privilege, shall be deemed to
have been waived by virtue of this BAA.
12. No Third-Party Beneficiaries. Nothing herein, express or
implied, is intended to or shall confer upon any other person or
entity any legal or equitable right, benefit, or remedy of any
nature whatsoever under or by reason of this BAA.
13. Integration. Any reference in this Agreement to a section of the
HIPAA/HITECH Final Omnibus Rule, and applicable
regulations, means the section as in effect as amended and for
which compliance is required.
iii. Continue to use appropriate safeguards and comply 14
with Subpart C of 45 CFR Part 164 with respect to
ePHI to prevent use or disclosure of the PHI, other
than as provided for in this section, for as long as
Business Associate retains the PHI;
iv. Not use or disclose the PHI retained by Business
Associate other than for the purposes for which such
PHI was retained and subject to the same conditions
set forth in this BAA which applied prior to
termination; and
v. Return to Covered Entity or destroy the PHI retained
by Business Associate when it is no longer needed
General. This BAA is governed by, and shall be construed in
accordance with, the laws of the State of Texas. If any part of
a provision of this BAA is found illegal or unenforceable, it shall
be enforced to the maximum extent permissible, and the
legality and enforceability of the remainder of that provision and
all other provisions of this BAA shall not be affected. This BAA
may be modified, or any rights under it waived, only by a written
document executed by the authorized representatives of both
parties.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK.
ACCEPTED AND AGREED:
CITY OF FORT WORTH:
ATTEST:
By:
Name: Jannette Goodall
Title: City Secretary
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.
c::--By: Christian McCoy (Sep 25, 202410:15 CDT)
Name: Christian McCoy
Title: Financial Services Manager
APPROVED AS TO FORM AND LEGALITY:
By:
Name: Taylor Paris
Title: Assistant City Attorney
CONTRACT AUTHORIZATION:
M&C: NIA