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HomeMy WebLinkAbout065118-EL1 - General - Contract - Forvis MazarsCSC No. 65118-EL1 Forvis Mazars, LLP 14221 Dallas Parkway, Suite 400 Dallas, TX 75254 P 972.702.8262 1 F 972.702.0673 forvismazars.us September 24, 2026 forws mazars To the Honorable Mayor and City Council Members of the City of Fort Worth, Texas (referred to herein as "you" or "your") 100 Fort Worth Trail Fort Worth, Texas 76102 We appreciate your selection of Forvis Mazars, LLP (Forvis Mazars) as your service provider and are pleased to confirm the arrangements of the engagement in this letter agreement (this letter agreement and the attachments hereto are collectively referred to as the "Agreement"). Within the requirements of our professional standards and any duties owed to the public, regulatory, or other authorities, our goal is to provide you with an Unmatched Client Experience®. The Agreement shall include the following, each incorporated fully by this reference: • Scope of Services • HIPAA Business Associate Agreement • City of Fort Worth Vendor Services Agreement by and between the City of Fort Worth and Forvis Mazars, LLP on July 13, 2026, and identified as City Secretary Contract No. 65518. For the sake of clarity, in the event of conflict between the terms and conditions of this contract and City Secretary Contract No. 65518, the terms of City Secretary Contract No. 65518 shall control. Summary Scope of Services As described in the attached Scope of Services, Forvis Mazars' 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, 2026 • 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 OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX Forvis Mazars, LLP is an independent member of Forvis Mazars Global Limited City of Fort Worth, Texas September 24, 2026 Page 2 You agree to be ultimately responsible for the results of nonattest services, including assuming all management responsibility, overseeing the services by a management -level individual(s) who possesses suitable skill, knowledge, and/or experience, and evaluating the adequacy and results of the services, as well as the business decisions you make following the services or any other services Forvis Mazars may provide. As required by Chapter 2271, Texas Government Code, Forvis Mazars represents that Forvis Mazars does 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 Forvis Mazars' fees will be based on time, skill, and resources, including Forvis Mazars' 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 ending September 30, 2026 shall not exceed $697,500. Assistance With New Standards Assistance and additional time as a result of the adoption of the following new standards are not included within the standard engagement fees. These fees will be based on time expended and will vary based on the level of assistance and procedures required. Governmental Accounting Standards Board (GASB) Statement No. 103, Financial Reporting Model Improvements, is effective for the City's fiscal year 2026. The purpose is to eliminate diversity in practice and improve comparability. Impacted areas include management's discussion and analysis, unusual or infrequent items, the definitions and presentation of operating and nonoperating revenues and expenses in enterprise funds, presentation of major component units, presentation of budgetary comparison information, and financial trends information within the statistical section of separately issued financial reports. Forvis Mazars can assist you with the adoption of this standard by providing services which may include, but are not limited to: Assessing your readiness by assisting with the evaluation of your: o Current controls and policies o Current internal resources and system capabilities Assisting with changes required to adopt Statement No. 103, including: o Assisting with information gathering by reviewing current financial statement presentation o Discussing potential impact o Recommending enhancements to existing controls and policies or suggesting new controls and policies to address Statement No. 103 o Documenting any changes from previous financial statement presentation o Drafting the required disclosures The time it will take to perform the above assistance and the additional audit procedures relating to the adoption of the Statement, and any time to assist you with the adoption, may be minimized to the extent your personnel will be available to provide timely and accurate documentation and information as requested. We will consult with you during the audit should we believe additional time will be necessary. City of Fort Worth, Texas September 24, 2026 Page 3 Agreement Please sign and return this Agreement to indicate your acknowledgment of, and agreement with, the arrangements for the completion of the services subject to this Agreement including each party's respective responsibilities. Forvic MAZArs, SUP Forvis Mazars, LLP Acknowledged and agreed to as it relates to the entire Agreement, 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 24, 2026 15:08:51 CDT) Reginald Zeno, CFO DATE 09/24/2026 X� BY Jay Chapa (Sep 4, 2026 15:41:13 CDT) Jesus "Jay" Chapa, City Manager DATE 09/24/2026 City of Fort Worth, Texas September 24, 2026 Page 4 Scope of Services — Audit Services Forvis Mazars 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, 2026 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 Texas Grant Management Standards (TxGMS) that could have a direct and material effect on 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 Forvis Mazars 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 the auditor's report thereon. Forvis Mazars' opinion on the financial statements will not cover the other information, and Forvis Mazars will not express an opinion or any form of assurance thereon. In connection with the audit of the financial statements, Forvis Mazars' 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, Forvis Mazars concludes that an uncorrected material misstatement of the other information exists, Forvis Mazars is required to describe it in the report. Forvis Mazars 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") is fairly stated, in all material respects, in relation to the financial statements as a whole. Forvis Mazars will complete the auditee portion of the Form SF -SAC (Data Collection Form) through the Federal Audit Clearinghouse. Forvis Mazars 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. Forvis Mazars 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, 2026 Page 5 You agree to assume all management responsibilities and to oversee the nonattest services Forvis Mazars 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 Rachel Ormsby, Partner, is responsible for supervising the engagement and authorizing the signing of the report or reports. Forvis Mazars will issue a written report upon completion of the 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 distributing the 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: Forvis Mazars' Forvis Mazars will conduct the audit in accordance with auditing standards Responsibilities generally 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, the Uniform Guidance, and the TxGMS. Those standards require that Forvis Mazars 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 Forvis Mazars will exercise professional judgment and maintain professional skepticism throughout the audit. Forvis Mazars 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 Forvis Mazars' opinion. Forvis Mazars 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, 2026 Page 6 Forvis Mazars 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. Forvis Mazars 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. Forvis Mazars 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. Forvis Mazars 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 the 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. Forvis Mazars is 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 and state 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. Forvis Mazars' responsibility as auditors is limited to the period covered by the audit and does not extend to any later periods for which Forvis Mazars is 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 and state programs as a whole. Forvis Mazars' understanding of internal control is not for the purpose of expressing an opinion on the effectiveness of your internal control. However, Forvis Mazars will communicate to you in writing any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that are identified during the audit. City of Fort Worth, Texas September 24, 2026 Page 7 Forvis Mazars is available to perform additional procedures with regard to fraud detection and prevention at your request, subject to completion of Forvis Mazars' normal engagement acceptance procedures. The actual terms and fees of such an engagement would be documented in a separate agreement to be signed by you and Forvis Mazars. Opinion Circumstances may arise in which the report may differ from its expected form and content based on the results of the audit. Depending on the nature of these circumstances, it may be necessary to modify the opinion, add an emphasis -of - matter paragraph or other -matter paragraph(s) to the auditor's report, or if necessary, decline to express an opinion or withdraw from the engagement. If Forvis Mazars discovers conditions that may prohibit Forvis Mazars from issuing a standard report, Forvis Mazars will notify you. In such circumstances, further arrangements may be necessary to continue the 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 Forvis Mazars 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 Forvis Mazars determines 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 relevant 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 a 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 may be requested 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 that 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 and state 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 City of Fort Worth, Texas September 24, 2026 Page 8 Establishment and maintenance of processes to track the status and address findings and recommendations of auditors 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 Forvis Mazars in the representation letter that the effects of any uncorrected misstatements aggregated by Forvis Mazars 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 Forvis Mazars 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. Forvis Mazars understands the following RSI will accompany the basic financial statements: 1. Management's 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 the engagement, Forvis Mazars will apply certain limited procedures to the RSI in accordance with 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 the inquiries, the basic financial statements, and other knowledge obtained during the audit of the basic financial statements. Forvis Mazars will not express an opinion or provide any assurance on the information because the limited procedures do not provide sufficient evidence to express an opinion or provide any assurance. City of Fort Worth, Texas September 24, 2026 Page 9 Supplementary With regard to any supplementary information that Forvis Mazars is engaged to Information report on: • Management is responsible for its preparation in accordance with applicable criteria • Management will provide certain written representations regarding the supplementary information at the conclusion of the engagement • Management will include the report on this supplementary information in any document that contains this supplementary information and indicates Forvis Mazars has 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 the financial statements themselves, and other additional procedures in accordance with GAAS Written As part of the audit process, Forvis Mazars will request from management and, if Confirmations applicable, those charged with governance written confirmation acknowledging Required certain responsibilities outlined in this Agreement 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 Forvis Mazars 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 Government Auditing Standards require that Forvis Mazars provides you with a Report copy of Forvis Mazars' 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 Agreement, upon request. If you would like a copy, please request from your engagement executive. City of Fort Worth, Texas September 24, 2026 Page 10 Scope of Services — Agreed -Upon Procedure Services Forvis Mazars 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 on Environmental Quality (TCEQ) compliance report, Section 4(J) Water and Sewer System Revenue Financing Program compliance report and Section 4(K) Water and Sewer System Revenue Financing Program compliance report as of and for the year ended September 30, 2026. The sufficiency of these requested procedures is solely the responsibility of the specified parties listed above. Consequently, Forvis Mazars makes no representation regarding the sufficiency of the procedures for the purpose for which the report has been requested or for any other purpose. The City has agreed to these procedures and acknowledged that the procedures to be performed are appropriate for the intended purpose. Forvis Mazars' responsibility is to carry out these procedures and report on the findings. It is understood that Forvis Mazars makes no representation regarding the appropriateness of these procedures for the purpose for which this report has been requested or for any other purpose. The procedures Forvis Mazars will perform may not address all the items of interest to a user of the report and may not meet the needs of all users of the report and, as such, users are responsible for determining whether the procedures performed are appropriate for their purposes. The engagement to perform agreed -upon procedures is not designed to constitute an examination or a review of the subject matter, the objective of which is the expression of an opinion or conclusion, respectively, on the subject matter. Accordingly, the report will not express an opinion or a conclusion on compliance. If additional procedures were to be performed, other matters might have come to Forvis Mazars' attention. In addition, Forvis Mazars has no obligation to perform any procedures beyond those listed in the attachment to this Agreement. Rachel Ormsby, Partner, is responsible for supervising the engagement and authorizing the signing of the report or reports. Forvis Mazars will issue a written report upon completion of the engagement that summarizes the procedures performed, and the results of those procedures. If Forvis Mazars encounters restrictions in performing the procedures, Forvis Mazars will discuss the matter with you. If Forvis Mazars determines the restrictions are appropriate, Forvis Mazars will disclose the restrictions in the report. The report will contain a paragraph indicating that had Forvis Mazars performed additional procedures, other matters might have come to Forvis Mazars' attention that would have been reported to you. The written report and related procedures Forvis Mazars will perform are for the intended use of: Entity Name Party Name City of Fort Worth, Texas The Honorable Mayor and Members of City Council These listed parties will also be asked to provide written agreement to the procedures and acknowledge that the procedures are appropriate for their purposes. A separate agreement and acknowledgment document will be provided for that purpose. However, if you decide to obtain that agreement and acknowledgement separately, you agree to provide, at the conclusion of the engagement, a written representation that you have obtained such agreement and acknowledgement from all necessary parties. The report will be intended for use by and restricted to the use of the specified parties and the report will contain such restricted use language. City of Fort Worth, Texas September 24, 2026 Page 11 The following apply for the agreed -upon procedure services described above: Forvis Mazars' Forvis Mazars will conduct the agreed -upon procedures engagement in Responsibilities accordance with attestation standards established by the American Institute of Certified Public Accountants. Limitations & The engagement will not include a detailed examination of all transactions and Fraud cannot be retied upon to disclose misstatements that might exist due to error, fraud, or illegal acts. Should Forvis Mazars encounter known or suspected fraud or noncompliance with laws or regulations, Forvis Mazars will follow the AICPA Code of Professional Conduct and applicable law to evaluate appropriate communication, if any, to the responsible parties and/or engaging parties. You accept that these procedures are not a substitute for management's responsibility to ensure controls are in place to prevent and detect theft and all other forms of fraud and illegal acts. Therefore, you agree Forvis Mazars is 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, Forvis Mazars is unable to complete the procedures, Forvis Mazars may decline to issue a report as a result of this engagement. Management 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 To facilitate the engagement, management of the City is responsible for supplying Forvis Mazars with all necessary information and allowing Forvis Mazars access to personnel to assist in performing the services. It should be understood that management is responsible for the accuracy and completeness of these items and for the subject matter. Written At the conclusion of our engagements, management will provide to us a letter Representations 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, 2026 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 2026 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, 2027. 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, 2027. 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 2026 when the notice of hearings for the Annual Budget and ad valorem tax rate was published for the year ended September 30, 2027. 3. Obtain and read the Fort Worth Star -Telegrams between September and October 2026 when the caption of the Annual Appropriations Ordinance and ad valorem tax rate for the fiscal year ended September 30, 2027 was published and was in accordance with the Annual Budget provision. 4. Obtain and read the Fort Worth Star -Telegrams between September and October 2026 for the dates when the caption and penalty provision of the ad valorem tax ordinance for the fiscal year ended September 30, 2027 were published in accordance with 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, 2026 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 2026 City Council minutes and the City's Investment Policy in place as of September 30, 2026, 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 certificates of deposit, 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, 2026, 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. Preservation 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 2026 City Council minutes and determine that the City Council reviewed its investment policy and investment strategy. City of Fort Worth, Texas September 24, 2026 Page 14 4. Review the City's Investment Policy in place as of September 30, 2026, 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, 2026, 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, 2026, 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, 2026, 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 regard to the City's investment policy and the Act 10. Review the Qualified Brokers list approved in the April 2026 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, 2026 Page 15 Attachment C - Agreed -Upon Procedures Texas Commission on Environmental Quality (TCEQ) The procedures that we will perform are as follows: I Obtain the Local Government Financial Test Letter from the Chief Financial Officer (Letter) prepared by the City for the year ended September 30, 2026. 2. Agree the amount of current cost estimates relating to postclosure and future closure costs to the 2026 closure and postclosure cost estimate tables provided by the City and the "Various Environmental Cleanup of Hazardous Substances" liability to the 2025 pollution remediation liability worksheet prepared by the City. 3. Review the City's Annual Comprehensive Financial Report for the year ended September 30, 2026 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 the City and agree the current bond rating, name of rating service and maturity date of the 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, 2026 and note whether the City operated at a deficit (total annual revenues minus total annual expenditures) equal to 5.0% or more of total annual revenues for the fiscal year ended September 30, 2026. 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's report in Procedure 10 above and determine whether the City did 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, 2026. City of Fort Worth, Texas September 24, 2026 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 No.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 insurance: 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 through September 30, 2026, 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, 2025 — September 30, 2026. 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, 2026 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, 2026, 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. e. Obtain the Note to Schedule A from the City and agree amounts paid by the Water and Sewer fund to the supporting operating transfers and tie -out journal entry details from the City's general ledger. 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-1 8879 approved on November 15, 2016. City of Fort Worth, Texas September 24, 2026 Page 18 HIPAA Business Associate Agreement This Business Associate Agreement ("BAA") is entered into by and between Forvis Mazars, LLP (hereinafter referred to as "Business Associate") and City of Fort Worth, Texas (hereinafter referred to as "Covered Entity"). RECITALS Business Associate provides services to Covered Entity under this agreement (the "Agreement"), and Covered Entity wishes to disclose certain information to Business Associate pursuant to the terms of such Agreement, some of which may constitute Protected Health Information ("PHI"). 2. Safeguards. Business Associate shall not use or disclose PHI other than as permitted or required by the BAA or as required by law. 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 3. 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 Act") and the Genetic Information Nondiscrimination Act • Other Modifications to the HIPAA Rules • Final Rule (the "Omnibus Rule"), 78 Fed. Reg. 5565 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 the Covered Entity. Exceptions: 1.1. As reasonably necessary to provide the services in the Agreement; 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. 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 Agreement 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). 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: 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 an agreement. 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, 2026 Page 19 term "Unsuccessful Security Incident" 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. v. Return to Covered Entity or destroy the PHI retained by Business Associate when it is no longer needed 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: 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. 8. 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 9. the Agreement or on the date Covered Entity terminates for cause as authorized in paragraph 6.2 of this section, whichever is sooner. 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. 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. 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. 6.2. Termination for Cause. Covered Entity may terminate this 10. Insurance. Business Associate shall maintain insurance BAA if Business Associate has violated a material term of coverage in form and amount necessary to cover data loss the BAA and Business Associate has not cured the and/or damage or the unauthorized disclosure and/or breach or ended the violation within the time specified by fraudulent use of data. Upon request, Business Associate shall Covered Entity. provide Covered Entity with a certificate of insurance evidencing the coverage. 6.3. Obligations of Business Associate Upon Termination. Upon termination of this BAA for any reason, Business 11. Privilege. No statutory or common law privilege, including Associate, with respect to PHI received from Covered privileges established or recognized by the attorney -client, Entity, or created, maintained, or received by Business accountant -client, or other legal privilege, shall be deemed to Associate on behalf of Covered Entity, shall: have been waived by virtue of this BAA. i. Retain only that PHI which is necessaryfor Business 12. No Third -Party Beneficiaries. Nothing herein, express or Associate to continue its proper management and implied, is intended to or shall confer upon any other person or administration or to carry out its legal entity any legal or equitable right, benefit, or remedy of any responsibilities; nature whatsoever under or by reason of this BAA. ii. Return to Covered Entity or destroy the remaining 13. Integration. Any reference in this Agreement to a section of the PHI that the Business Associate still maintains in HIPAA/HITECH Final Omnibus Rule, and applicable any form; regulations, means the section as in effect as amended and for which compliance is required. iii. Continue to use appropriate safeguards and comply with Subpart C of 45 CFR Part 164 with respect to 14 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 General. This BAA is governed by, and shall be construed in accordance with, the laws of the State of Delaware. 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 ►,Td�3?Li>i J_1►IJ_Tr714 CITY OF FORT WORTH: Hann da f FO/\RT��dd0 ATTEST: d° oe: �\,, G e -"- By: ad Name: Jannette Goodall Title: City Secretary CONTRACT COMPLIANCE MANAGER: By signing, I acknowledge that I am the person responsible for monitoring and administration of this contract, including ensuring all performance and reporting requirements. By: Christian McCoy (Sep 29, 2026 13:11:38 CDT) Name: Christian McCoy Title: Financial Services Manager APPROVED AS TO FORM AND LEGALITY: By: Name: Taylor Pais Title: Assistant City Attorney CONTRACT AUTHORIZATION: M&C: N/A OFFICIAL RECORD CITY SECRETARY FT. WORTH, TX 7/9/26, 2:57 PM M&C Review CITY COUNCIL AGENDA Create New From This M&C Official site of the City of Fort Worth, Texas FUR7�TI I DATE: 6/9/2026 REFERENCE NO.: **M&C 26-0443 LOG NAME: 13AUDIT SERVICES FY26 CODE: G TYPE: CONSENT PUBLIC NO HEARING: SUBJECT: (ALL) Authorize Execution of a Professional Services Agreement with Forvis Mazars, LLP for External Financial Audit Services in an Amount Up to $840,000.00 per Year for a Three - Year Initial Term with Two One -Year Renewal Options RECOMMENDATION: It is recommended that the City Council authorize execution of a professional services agreement with Forvis Mazars, LLP to provide external financial audit services for the City of Fort Worth in an amount up to $840,000.00 per year for a three-year initial term with two one-year renewal options. DISCUSSION: The purpose of this Mayor and Council Communication (M&C) is to authorize a professional services agreement with Forvis Mazars, LLP to obtain external financial audit services for the City of Fort Worth (City). Services will include review of the City's financial statements to ensure conformity with Generally Accepted Accounting Principles (GAAP), examination of compliance with requirements established by state law and the City Charter and Ordinances and certain limited procedures involving supplementary information required by the Governmental Accounting Standards Board (GASB). All services will be provided in accordance with Generally Accepted Auditing Standards (GAAS) as set forth by the American Institute of Certified Public Accountants and Government Auditing Standards. On March 23, 2026, a Request for Qualifications (RFQ) for external financial audit services was issued by Financial Management Services with a proposal deadline of April 24, 2026. Proposals addressing evaluation criteria that included experience and performance for comparable government engagements, implementation of GASB statements, quality of professional personnel, availability of technical consultation, proposed staffing plan, techniques, analytical procedures, and price. Proposals were received from the following firms: Cherry Bekaert CLA Crowe, LLP Forvis Mazars, LLP MGO RSM Weaver & Tidwell, L.L.P. d/b/a Weaver The proposals were evaluated by the selection committee (Committee), which consisted of key staff from the FMS, Information Technology Solutions and Internal Audit Departments. The proposals were evaluated based on the following criteria: Firm's Qualifications and Experience (50\%) Understanding the Needs of the City (20\%) Reasonableness of Costs (20\%) Soundness of Approach (10\%) The top two responding firms were invited to give a presentation and participate in an interview process. Based on ratings received in both processes, Forvis Mazars, LLP was ranked the highest. The Committee agrees the recommended firm meets specifications and that its price is fair and reasonable. apps.cfwnet.org/council_packet/me review.asp?ID=34486&councildate=6/9/2026 1/2 7/9/26. 2:57 PM M&C Review ADMINISTRATIVE CHANGE ORDER - An administrative change, order or increase may be made by the City Manager in an amount of up to $100,000.00 and does not require specific City Council approval as long as sufficient funds have been appropriated. Funding is budgeted in the Consultant & Other Prof Service account within the General Fund and will be budgeted in the Consultant & Other Prof Services account within the General Fund for Fiscal Year 2027 for the Financial Management Services Department. Agreement Terms The contract will commence upon execution with an initial three-year term, followed by two optional one-year renewal terms. This action does not require specific City Council approval provided that the City Council has appropriated sufficient funds to satisfy the City's obligations during the renewal term. This will serve ALL COUNCIL DISTRICTS. FISCAL INFORMATION/CERTIFICATION: The Director of Finance certifies that funds are available in the current operating budget, as previously appropriated, and upon adoption of the Fiscal Year 2027 Budget by the City Council, funds will be available in the Fiscal Year 2027 Operating Budget, as appropriated, in the General Fund to support the approval of the recommendation and execution of the professional services agreement. Prior to an expenditure being incurred, the Financial Management Services Department has the responsibility to validate the availability of funds. Fund Department ID Account Project I Program ID Activity Budget Year Reference # (Chartfield 2) Amount FROM Fund Department ID Account Project ID Program Activity Budget Year Reference # (Chartfield 2) Amount Submitted for City Manager's Office by_ Reginald Zeno (8517) Originating Department Head: Reginald Zeno (8517) Additional Information Contact: Catherine Perry (2234) ATTACHMENTS 13AUDIT SERVICES FY26 fid table.xlsx (CFW Internal) 13AUDIT SERVICES FY26 funds avail.docx (CFW Internal) Form 1295 Certificate - Completed.pdf (CFW Internal) apps.cfwnet.org/council_packeVmc review.asp?ID=34486&councildate=6/9/2026 2/2 FORT WORTH® City Secretary's Office Contract Routing & Transmittal Slip Contractor's Name: Forvis Mazars Engagement Letter - 2026 Subject of the Agreement: Engagement letter No. 1 to CSC No. 65118Vendor Services Agreement to serve as Independent Audit in connection with the preparation of the City's Annual Comprehensive Financial Report and Single Audit. M&C Approved by the Council? * Yes ® No ❑ If so, the M&C must be attached to the contract. Is this an Amendment to an Existing contract? Yes 0 No If so, provide the original contract number and the amendment number. Is the Contract "Permanent"? *Yes ❑ No If unsure, see back page for permanent contract listing. Is this entire contract Confidential? *Yes ❑ No ® If only specific information is Confidential, please list what information is Confidential and the page it is located. Effective Date: 07/13/2026 If different from the approval date. Expiration Date: 06/29/2029 If applicable. Is a 1295 Form required? * Yes ❑ No B *Ifso, please ensure it is attached to the approving M&C or attached to the contract. Project Number: If applicable. *Did you include a Text field on the contract to add the City Secretary Contract (CSC) number? Yes 0 No 0 Contracts need to be routed for CSO processing in the following order: 1. Katherine Cenicola (Approver) 2. Jannette S. Goodall (Signer) 3. Allison Tidwell (Form Filler) *Indicates the information is required and if the information is not provided, the contract will be returned to the department.