Exhibit 1 - Agenda Information Sheet - Amendment 1City of Denton
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AGENDA INFORMATION SHEET
DEPARTMENT: Procurement
ACM: Cassey Ogden
DATE: May 2, 2023
SUBJECT
Consider adoption of an ordinance of the City of Denton, a Texas home-rule municipal corporation,
authorizing the approval of a first amendment to a Professional Services Agreement between the City of
Denton and Weaver and Tidwell, L.L.P., amending the contract approved by the City Council on July 28,
2020, in the not-to-exceed amount of $354,500.00; said first amendment to provide external audit services
for the City of Denton’s fiscal year 2022-23, including an audit of the financial statements and single audit
for the year ending September 30, 2023, and an agreed-upon procedures report for the Texas Commission
on Environmental Quality as managed by the City Auditor’s Office; providing for the expenditure of funds
therefor; and providing an effective date (RFQ 7284 – providing for an additional first amendment
expenditure amount not-to-exceed $123,500.00, with the total contract amount not-to-exceed $478,000.00).
STRATEGIC ALIGNMENT
This action supports Key Focus Area: Pursue Organizational Excellence and Collaborative and Respectful
Leadership.
INFORMATION/BACKGROUND
At the end of each fiscal year, the City of Denton undergoes a financial audit performed by an independent
auditing firm. The objective of this financial audit is to form and express an opinion about whether the
financial statements (i.e. the Annual Comprehensive Financial Report) prepared by City staff are presented
fairly in all material respects.1 The external auditor also performs the “Single Audit,” which is required if
state or local governments expend more than $750,000 in federal dollars annually. As part of this
engagement, the external auditor provides an opinion on the fair presentation of the Supplementary
Schedule of Expenditures of Federal and State Awards per the applicable regulations. Finally, the external
auditor performs an agreed-upon procedures engagement as required by Texas Administrative Code,
Chapter 37, and agreed upon by the City of Denton and the Texas Commission on Environmental Quality.
This engagement evaluates City management’s assertions about compliance with the financial test option
concerning the sanitary landfill and landfill gas recover facility.
In order to further ensure the external audit firms' independence from management, the City has elected to
have the City Auditor administer the annual external audit contract including, leading solicitation efforts,
coordinating with staff on vendor evaluation, and reviewing and paying invoices. In 2020, an evaluation
1 Materiality is a term used in auditing and accounting that relates to the importance or significance of an amount, transaction,
or discrepancy. A material matter is ultimately a matter of professional judgement and depends upon factors such as the
volume of an organization’s revenues and expenses.
City Hall
215 E. McKinney Street
Denton, Texas
www.cityofdenton.com
team made up of Finance Department and City Auditor’s Office staff selected Weaver & Tidwell L.L.P.
based on a Request for Qualifications and executed a three year contract with a one year option. The contract
was executed with a do not exceed amount to only cover the first three years of service. A history of the
contract pricing by audited fiscal year is shown in Table 1.
Table 1: Historical Contract Price
Audited Year Contract Price
FY2020 $116,500
FY2021 $117,500
FY2022 $120,500
FY2023 (Proposed) $123,500
The contract amendment will extend the contract for the fourth year and increase the do not exceed amount
to allow the vendor to receive payment based on a price quoted in March 2023.
PRIOR ACTION/REVIEW (Council, Boards, Commissions)
On July 28, 2020, City Council approved a contract with Weaver & Tidwell L.L.P., in the not-to-exceed
amount of $354,500 (Ordinance 20-1304).
RECOMMENDATION
Award Amendment No. 1 with Weaver & Tidwell, L.L.P., to continue to provide external audit services
for the City of Denton’s fiscal year 2022-23, including an audit of the financial statements and single audit
for the year ending September 30, 2023, and an agreed-upon procedures report for the Texas Commission
on Environmental Quality as managed by the City Auditor’s Office, in a not-to-exceed amount of $123,500,
for a total amended contract amount of $478,000.
PRINCIPAL PLACE OF BUSINESS
Weaver and Tidwell, L.L.P.
Dallas, TX
ESTIMATED SCHEDULE OF PROJECT
This contract expires on July 28, 2024. Fieldwork to audit the Fiscal Year 2022-23 Annual Comprehensive
Financial Report will begin in the fall of 2023 and should be complete by March 2024.
FISCAL INFORMATION
These services will be funded from the General Fund account 105001.7852. A new Purchase Order will be
entered to encumber the first amendment amount of $123,500. The total amended amount of this contract
is $478,000.
EXHIBITS
Exhibit 1: Agenda Information Sheet
Exhibit 2: Original Ordinance and Contract
Exhibit 3: Ordinance and Amendment 1
Respectfully submitted:
Lori Hewell, 940-349-7100
Purchasing Manager
For information concerning this acquisition, contact: Madison Rorschach, 940-349-7228.
Legal point of contact: Marcella Lunn at 940-349-8333.