2008-145FILE REFERENCE FORM 2008-145
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FILES Date Initials
First Amendment to Agreement [ Ordinance No. 2011-096] 06/07/11 ) R
ORDINANCE NO. ODD /'f~-
AN ORDINANCE TO THE CITY OF DENTON, TEXAS AUTHORIZING THE CITY
MANAGER TO EXECUTE A PROFESSIONAL SERVICES AGREEMENT BETWEEN THE
CITY OF DENTON AND WEAVER AND TIDWELL, L.L.P. FOR INDEPENDENT AUDITS;
AUTHORIZING THE EXPENDITURE OF FUNDS; AND PROVIDING AN EFFECTIVE DATE
(RFSP 4033- AUDIT SERVICES AWARDED TO WEAVER AND TIDWELL, L.L.P. IN THE
NOT TO EXCEED AMOUNT OF $141,000. FOR 2008,$145,500 FOR 2009 AND $151,500 FOR
2010).
WHEREAS, The City's current agreement with KPMG L.L.P. expired after completion of
the firm's audit services for the fiscal year ending September 30, 2007; and
WHEREAS, in response to requests for proposal, Weaver and Tidwell, L.L.P. was the best
proposal received for audit services; and
WHEREAS, Chapter 2254 of the Texas Government code, known as the Professional
Services Procurement Act, generally provides that a city may not select a provider of professional
services on the basis of competitive bids, but must select the provider of professional services on the
basis of demonstrated competence, knowledge, and qualifications, and for a fair and reasonable
price; and
WHEREAS, the City Council hereby finds and concludes that Weaver and Tidwell, L.L.P.
is appropriately qualified under the provisions of the law to be retained to provide auditing services
and has been selected on the basis of demonstrated competence, knowledge, and qualifications, and
the compensation paid is fair and reasonable; and
WHEREAS, the City Manager recommends and the City Council deems it in the public
interest that the City enter into a professional services agreement for independent auditing services
with Weaver and Tidwell, L.L.P. for the fiscal years ending September 30, 2008, September 30,
2009, and September 30, 2010 with the City's option to extend the agreement for two additional
years ending September 30, 2011 and September 30, 2012; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. The City Manager is hereby authorized to execute on behalf of the City, a
professional services agreement for auditing services between the City and Weaver and Tidwell,
L.L.P. for the independent auditing services, in substantially the form of the agreement which is
attached hereto and incorporated by reference herein.
SECTION II. The City Manager is authorized to expend funds as required by the attached
contract.
SECTION III. The findings in the preamble of this ordinance are incorporated herein by
reference.
SECTION IV. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~ day of ,2008.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM:
JOHN.M. KNIGHT, INTERIM CITY ATTORNEY
BY:
3-ORD S3
PROFESSIONAL SERVICES AGREEMENT
FOR AUDITING SERVICES
STATE OF TEXAS
COUNTY OF DENTON
THIS AGREEMENT, is made and entered into as of the 15th day of July 2008, by
and between the City of Denton, a Texas Municipal Corporation, with its principal office
at 215 E. McKinney Street, Denton, Denton County, Texas 76201 (hereinafter referred to
as "CITY") and Weaver and Tidwell, L.L.P., with an office at 12221 Merit Dr., Suite
1400, Dallas, Texas 75201 (hereinafter referred to as ("AUDITOR") acting herein, by
and through their duly authorized representatives.
WHEREAS, CITY desires to engage AUDITOR to provide audit services as herein
defined; and
WHEREAS, AUDITOR is willing to provide such services to CITY;
NOW THEREFORE, in consideration of the promises and mutual undertakings
herein contained, the parties agree as follows:
1.
Engagement of Auditor
The CITY hereby contracts with AUDITOR, as an independent contractor, and the
AUDITOR hereby agrees to perform the services herein in connection with the
engagement as stated in the Articles to follow, with diligence and in accordance with the
applicable professional standards customarily obtained for such services in the State of
Texas. The professional services to be performed by AUDITOR are in connection with
the engagement described in Article 2 below.
2.
Scope of Services
The AUDITOR shall perform the following services:
A. The AUDITOR will perform the annual audit of CITY's basic financial
statements. Such audit will be conducted in accordance with generally accepted
auditing standards; Government Auditing Standards, issued by the Comptroller of
the United States; the Single Audit Act of 1996; and the applicable OMB
Circular, Audits of State and Local Governments, and any other applicable
regulations as set forth by federal, state, or local regulating bodies, particularly the
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Governmental Accounting Standards Board as they may now read or may
hereinafter be amended.
B. AUDITOR will issue a management letter to CITY reporting any material
weaknesses in CITY's internal accounting controls discovered during the annual
audits of CITY's financial statements.
C. AUDITOR will perform the annual compliance audit and single audit of CITY's
federal financial assistance programs. Such audit will be conducted in accordance
with generally accepted auditing standards; Government Auditing Standards,
issued by the Comptroller of the United States; OMB's Compliance Supplement
for Single Audits of State and Local Governments; the applicable OMB Circular,
Audits of State and Local Governments; and AICPA Statement on Auditing
Standard No. 63, Compliance Auditing Applicable to Governmental Entities and
Other Recipients of Governmental Financial Assistance, and any other applicable
regulations as set forth by federal, state, or local regulating bodies, particularly the
Governmental Accounting Standards Board as they may now read or hereinafter
be amended.
D. AUDITOR will perform all professional services as defined in the Auditor's
Proposal for Professional Auditing Services document dated May 15, 2008
(Exhibit A), and in the City's Request for Sealed Proposals for Audit Services
(RFSP #4033) on file in the office of the Purchasing Agent, and which are
incorporated by reference herewith; together with those professional services
outlined in the annual, officially accepted and agreed-upon Engagement Letters to
be attached as Amendments Number One (1) through Two (2) hereto in the event
the City exercises its option years under section 3 and 6 of this agreement. These
two (2) amendments will be attached at the beginning of each annual engagement.
E. During any fiscal year covered by this Agreement, CITY may request AUDITOR
to provide services in addition to the services provided hereunder. AUDITOR
may, at its option, agree to provide such additional services upon terms and
conditions as mutually agreed upon and outlined in Appendix A. Rates in
Appendix A reflect the first fiscal year (year ending September 30, 2008) rates.
These rates will be adjusted annually using the Consumer Price Index for the
Dallas metroplex for March of each year. The March 2008 CPI will be used as
the base year.
3.
Duration of Agreement
This Agreement for audit services as specified herein for the financial statements of
CITY pertains to CITY's fiscal years ending September 30, 2008, September 30, 2009,
and September 30, 2010 and, if CITY exercises its option pursuant to Article 6, CITY's
fiscal years ending September 30, 2011 and September 30, 2012 unless sooner terminated
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in accordance with Article 14. This Agreement may be sooner terminated in accordance
with the provisions hereof. If the CITY exercises the two option years, the extension
shall be considered part of this Agreement. This extension will be documented by the
CITY's receipt and official written acceptance of the annual Engagement Letter for the
fiscal years ending September 30, 2011 and September 30, 2012.
4.
Completion of Services
AUDITOR'S financial and compliance audit work shall be completed no later than
December 30, after the CITY's fiscal year end. The City's Controller should be able at
this time to begin preparation of the Comprehensive Annual Financial Report ("CAFR").
The CAFR should be available for print by the 2nd Monday in January following the end
of the latest fiscal year. AUDITOR'S completion of the compliance and audit work for
the CITY is subject to availability of the CITY's records. The AUDITOR shall make all
reasonable efforts to complete the services set forth herein as expeditiously as possible,
and to meet the schedule established by the CITY, acting through its City Manager or his
designee.
5.
Responsibilities of the City
CITY understands that the proper and timely completion of AUDITOR'S services
hereunder requires the reasonable cooperation of CITY (including, without limitation, its
agencies, and their respective officers, directors, employees, other personnel and agents).
CITY agrees to provide all such reasonable cooperation requested by AUDITOR,
including, without limitation, the following:
A. Access to, and/or copies of CITY's books and records;
B. Access to CITY personnel;
C. Office space and access to support services such as copying and telephone;
D. Written representations from CITY's attorney's, both internal and external; the
latter may bill CITY for such services;
E. Written representations from CITY about the financial statements and other
matters; and
F. Closing of CITY's books and records of account in accordance with laws,
regulations and professional standards applicable to the services provided
hereunder.
If the City exercises its renewal options it will agree with the provisions contained in the
Engagement Letters, if any, for each of the option fiscal years, as will be attached in
Amendments One through Two at the beginning of each annual engagement provided,
however, the Engagement Letters shall be consistent with all the terms and conditions of
this Agreement. If there is any conflict between the terms and conditions of the
Engagement Letters and this Agreement, the terms and conditions of this Agreement
shall prevail.
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6.
Renewal
CITY may request renewal of this Agreement for two additional one-year periods for
CITY's fiscal years ending September 30, 2011 and September 30, 2012. CITY shall
exercise its renewal option for the one year period ending September 30, 20011 by March
31, 2010. CITY shall exercise its renewal option for the one-year period ending
September 30, 2012 by March 31, 2011. If the CITY does not elect to exercise these
options for renewal of this Agreement for these two additional one year periods, then
CITY and AUDITOR agree that CITY may then issue requests for proposals for the
fiscal years ending September 30, 2011 and September 30, 2012.
7.
Compensation
A. CITY shall pay AUDITOR for time charges and expenses incurred. AUDITOR's
standard hourly rate varies according to the degree of responsibility involved and
the experience level of the personnel assigned to CITY's audit. Except as
provided hereunder, AUDITOR's fees for the performance of the services
described in Section 2 shall be limited by the not to exceed figures set forth herein
and charged at the rates set forth under Appendix A.
For the fiscal years a ding September 30, 08, 2009, 2010; and if applicable, /
option years 2011 an 2012, shall not excee these respective amounts: $141,000
for 2008, $145,500 for 2009, $151,500 for 2010. Should the City choose to
exercise its option for the renewal of this agreement in years 2011 and 2012,
Auditor fees will be adjusted annually using the Consumer Price Index for the
Dallas Metroplex and the year ended September 30, 2010 as the base year.
B. CITY and AUDITOR recognize that the scope of services and compensation
under this Agreement are predicated upon (i) current audit requirements imposed
by laws, regulations and professional standards relating to such services; (ii)
expectations of reasonable cooperation with AUDITOR by CITY pursuant to this
Agreement; and (iii) the absence of any irregularities or circumstances which
might necessitate the extension of audit services beyond the normal scope of
auditing services.
C. Should (i) irregularities; (ii) the absence of such reasonable cooperation; (iii)
increase in the level of services required under applicable laws, regulations or
professional standards; or (iv) other unforeseen conditions be encountered which
might necessitate the extension of auditing work beyond the scope of normal
auditing procedures, AUDITOR agrees to advise CITY promptly in writing of the
circumstances and to request an equitable adjustment in the maximum fee before
significant additional time is incurred by AUDITOR. Any such requests for
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adjustments shall be in writing and shall contain an explanation of why the
adjustments are necessary.
D. CITY and AUDITOR agree to negotiate in good faith to determine an equitable
adjustment in the maximum fee. Should CITY and AUDITOR be unable to agree
upon an equitable adjustment within fourteen (14) days of AUDITOR's written
request, or such other time period as agreed upon in writing by CITY and
AUDITOR, either party may, notwithstanding any other provision in this
Agreement, terminate this Agreement upon thirty (30) days written notice to the
other party. CITY shall be liable for time charges and expenses actually incurred
by AUDITOR except for any such additional time and expense which has been
incurred as a result of the circumstances necessitating the adjustment.
8.
Billing and Payment
A. AUDITOR shall submit periodic detailed itemized invoices for time charges and
expenses incurred as the services hereunder are performed satisfactorily in
accordance with this Agreement. Such invoices are payable upon presentation.
CITY will be in material breach of this Agreement if CITY's account becomes
ninety (90) days or more overdue. AUDITOR may, at its sole option and without
waiver of any rights pursuant to the termination provision in this Agreement or
otherwise, suspend its services and resume them upon receipt from CITY of the
full amount due AUDITOR which has been submitted by invoice to CITY.
B. Partial payments to AUDITOR will be made on the basis of detailed itemized
statements rendered to and approved by the CITY through its City Manager or his
designees; however, under no circumstances shall any statement for services
exceed the value of the work performed by AUDITOR at the time a statement is
rendered.
C. Nothing contained in this Section shall require the CITY to pay for any work
which is not submitted in compliance with the terms of this Agreement. CITY
shall not be required to make any payments to the AUDITOR when AUDITOR is
in material default under this agreement for more than 30 days after receipt of
written notice of such default from CITY.
D. It is specifically understood and agreed that AUDITOR shall not be authorized to
undertake any work pursuant to this Agreement which would require additional
payments by the CITY for any charge, expense or reimbursement above the
maximum not to exceed fee as stated without first having obtained written
authorization from the CITY.
9.
Ownership of Workpapers,
RFSP 4033 Audit Services 5/08
Documents, and Property
A. All workpapers of AUDITOR shall remain the property of AUDITOR. In
addition, to the extent that AUDITOR utilizes any of its property (including,
without limitation, any hardware or software of AUDITOR or any proprietary or
confidential information or trade secrets of AUDITOR) in performing the services
hereunder, such property shall remain the property of AUDITOR, and CITY shall
acquire no right or interest in such property.
B. Except for the workpapers and other documentation described in Section 9.A.
above, all documents prepared or furnished by the AUDITOR for delivery to
CITY pursuant to this Agreement are instruments of service and shall become the
property of the CITY upon the termination of this Agreement, and full and final
payment of all undisputed amounts owed AUDITOR hereunder. The AUDITOR
is entitled to retain copies of all such documents.
10.
Independent Contractor
AUDITOR shall provide services to CITY as an independent contractor, not as an
employee of the CITY. AUDITOR shall not have or claim any right arising from
employee status.
H.
Indemnity Provision
AUDITOR shall indemnify and save and hold harmless the CITY and its officers, agents,
and employees from and against any and all liability, claims, demands, damages, losses
and expenses, including but not limited to court costs and reasonable attorney fees
incurred by the CITY in each case solely for bodily injury, death and physical damages to
real or tangible personal property to the extent resulting from the negligent acts or
omissions of the AUDITOR or its officers, partners, agents, or employees in the
execution, operation, or performance of this Agreement.
As a condition to the foregoing indemnity obligation, CITY shall provide AUDITOR
with prompt notice of any claim for which indemnification shall be sought hereunder and
shall cooperate in all reasonable respects with AUDITOR in connection with any such
claim. AUDITOR shall be entitled to control the handling of any such claim, with full
disclosure of any and all claims, and actions taken thereunder, to the CITY; and
AUDITOR shall be entitled to defend or settle any such claim, in its sole discretion, with
counsel of its own choosing.
Nothing in this agreement shall be construed to create a liability to any person who is not
a party to this Agreement and nothing herein shall waive any of the party's defenses, both
at law or equity, to any claim, cause of action or litigation filed by anyone not a party to
RFSP 4033 Audit Services 5/08
this Agreement, including the defense of governmental immunity, which defenses are
hereby expressly reserved.
12.
Insurance
During the performance of the Services under this Agreement, AUDITOR shall maintain,
throughout the duration of this Agreement, the following insurance:
A. Professional Liability Insurance with policy limits of not less than $1,000,000
annual aggregate, with respect to negligent acts, errors, or omissions in
connection with the professional services performed by AUDITOR pursuant to
this Agreement.
B. AUDITOR shall furnish insurance certificates or insurance policies at CITY's
request to evidence such coverage. The insurance policy shall contain a provision
that such policy shall not be cancelled or modified without thirty (30) days prior
written notice given by the Insurance carrier to CITY and AUDITOR. In the
event of cancellation or non-renewal of such coverage, AUDITOR shall, prior to
the effective date of the non-renewal or cancellation, deliver to CITY a Certificate
of Insurance evidencing that a substitute policy furnishing the same coverage is in
full force and effect.
13.
Arbitration and Alternate Dispute Resolution
"AUDITOR and the CITY (1) acknowledge that it is in their best interests to resolve any
dispute, claim or controversy arising out of or relating to this engagement letter (any such
dispute, claim or controversy, a "Dispute"), including any Dispute involving any person
or entity for whose benefit the services in question are or were provided, in accordance
with the dispute resolution procedures set forth below and (2) agree to use their best
efforts so to resolve any such Dispute. Without limitation, such efforts shall include
mandatory submission of a Dispute to non-binding mediation as provided below.
Should such Dispute not be resolved within 90 days after the issuance by one of the
parties of a written Request for Mediation (or such longer period as the parties may
agree), CITY and AUDITOR may submit the Dispute to arbitration, if both agree to do
so, or seek other legal recourse including, without limitation, litigation. In the event the
parties agree to submit a Dispute to arbitration, the rules below shall govern.
Notwithstanding the agreement to such procedures, either party may seek injunctive relief
to enforce its rights with respect to the use or protection of (i) its confidential or
proprietary information or material or(ii) its names, trademarks, service marks or logos,
solely in the courts of the State of Texas or in the courts of the United States located in
the State of Texas. The parties consent to the personal jurisdiction thereof and to sole
venue therein only for such purposes.
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Mediation
Any parry may initiate mediation of a dispute by providing a written Request for
Mediation to the other party or parties. The mediator, as well as the time and place of the
mediation, which shall be a location in Denton or Dallas County, shall be selected by
agreement of the parties. Unless one of the parties notifies the other party upon providing
or receiving a written Request for Mediation that the party prefers another procedure for
mediation, the parties agree to proceed in mediation using the CPR Mediation Procedures
(effective April 1, 1998) issued by the Center for Public Resources, with the exception of
paragraph 2 which shall not apply to any mediation conducted pursuant to this agreement.
As provided in the CPR Mediation Procedures, the mediation shall be conducted as
specified by the mediator and as agreed upon by the parties. The parties agree to discuss
their differences in good faith and to attempt, with facilitation by the mediator, to reach a
consensual resolution of the dispute. The mediation shall be treated as a settlement
discussion and shall be confidential. The mediator may not testify for any party in any
later proceeding related to the dispute. No recording or transcript shall be made of the
mediation proceeding. Each party shall bear its own costs in the mediation. Absent an
agreement to the contrary, the fees and expenses of the mediator shall be shared equally
by the parties. Either party may seek to enforce any written agreement reached by the
parties during mediation in any court of competent jurisdiction.
Arbitration
Arbitration will be conducted either (1) in accordance with the procedures in this
document and the Rules for Non-Administered Arbitration of the CPR Institute for
Dispute Resolution ("CPR Arbitration Rules") as in effect on the date of the engagement
letter or contract between the parties, or (2) in accordance with other rules and procedures
as the parties may designate by mutual agreement. In the event of a conflict, the
provisions of this document and the CPR Arbitration Rules will control.
Arbitration shall take place in either Denton County or Dallas County, Texas. The
arbitration will be conducted before a panel of three arbitrators, two of whom may be
designated by the parties using either the CPR Panels of Distinguished Neutrals or the
Arbitration Rosters maintained by any United States office of the Judicial Arbitration and
Mediation Service (JAMS). If the parties are unable to agree on the composition of the
arbitration panel, the parties shall follow the screened selection process provided in
Section B, Rules 5, 6, 7, and 8 of the CPR Arbitration Rules. Any issue concerning the
extent to which any dispute is subject to arbitration, or any dispute concerning the
applicability, interpretation, or enforceability of these procedures, including any
contention that all or part of these procedures are invalid or unenforceable, shall be
governed by the Federal Arbitration Act and resolved by the arbitrators. No potential
arbitrator shall be appointed unless he or she has agreed in writing to abide and be bound
by these procedures.
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The arbitration panel shall issue its final award in writing. The panel shall have no power
to award non-monetary or equitable relief of any sort. Damages that are inconsistent with
any applicable agreement between the parties, that are punitive in nature, or that are not
measured by the prevailing party's actual damages, shall be unavailable in arbitration or
any other forum. In no event, even if any other portion of these provisions is held to be
invalid or unenforceable, shall the arbitration panel have power to make an award or
impose a remedy that could not be made or imposed by a court deciding the matter in the
same jurisdiction.
Discovery shall be permitted in connection with the arbitration only to the extent, if any,
expressly authorized by the arbitration panel upon a showing of substantial need by the
party seeking discovery.
All aspects of the arbitration shall be treated as confidential. The parties and the
arbitration panel may disclose the existence, content or results of the arbitration only as
provided in the CPR Arbitration Rules. Before making any such disclosure, a party shall
give written notice to all other parties and shall afford such parties a reasonable
opportunity to protect their interests.
The award reached as a result of the arbitration will be binding on the parties, and
confirmation and enforcement of the arbitration award may be sought in any court having
jurisdiction. The parties agree that the City is a governmental entity subject to the Texas
Public Information Act and that any disclosure of information arising out of the
mediation or arbitration or out of this Agreement which is required by an opinion of the
Attorney General of the State of Texas or a ruling of a Court shall not be considered a
breach of this Agreement.
This section shall control over any conflicting arbitration or alternate dispute resolution
provisions in the Engagement Letter.
14.
Termination of Agreement
A. Notwithstanding any other provision of this Agreement, either party may
terminate by giving thirty (30) days advance written notice to the other parry.
B. This agreement may be terminated in whole or in part in the event of either party
substantially failing to fulfill its obligations under this Agreement. No such
termination will be effected unless the other party is given (1) written notice
(delivered by certified mail, return receipt requested) of intent to terminate and
setting forth the reasons specifying the nonperformance , and not less than 30
days to cure the failure, and (2) an opportunity for consultation with the
terminating party prior to termination.
C. The City may cancel the contract should the present or any future City Council
not appropriate funds in any fiscal year for the payment of compensation under
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the Agreement. No penalty shall attach in the event of such non-appropriation. In
the event of non-appropriation the City shall give the AUDITOR advance written
notice before cancellation of the contract, and the City shall not be obligated to
make any payments beyond the end of the last fiscal year for which funds have
been appropriated.
D. If the agreement is terminated prior to completion of the services to be provided
hereunder, AUDITOR shall immediately cease all services and shall render a final
bill for services to the CITY within 30 days after the date of termination. The
CITY shall pay AUDITOR for all services rendered and satisfactorily performed
and for reimbursable expenses incurred prior to the date of termination in
accordance with the terms of this Agreement. Should the CITY subsequently
contract with a new AUDITOR for the continuation of services on the audit
engagement, AUDITOR shall reasonably cooperate in providing information in
accordance with, and to the extent required by, applicable professional standards.
The AUDITOR shall turn over all documents prepared or furnished by
AUDITOR for delivery to CITY pursuant to this Agreement to the CITY on or
before date of termination, but may maintain copies of such documents for its
own files.
15.
Subcontracting
Neither this Agreement, nor the audit services to be provided hereunder may be assigned
or subcontracted without prior written approval of CITY.
16.
Retention Of and Access To Records
For a period of five years after the date of AUDITOR's report on any audit completed
hereunder, upon reasonable written notice to AUDITOR and CITY, representatives of the
cognizant audit agency (or its designee), the Texas state auditing agency and the United
States General Accounting Office shall be entitled during AUDITOR's regular business
hours during the said five year period to inspect and designate for copying AUDITOR's
audit workpapers relating to such completed audit. Copies will be made at CITY's or
requestor's expense by, or under the control of AUDITOR.
17.
Notices
All notices, communications, and reports required or permitted under this Agreement
shall be personally delivered or mailed to the respective parties by depositing same in the
United States mail at the address shown below, certified mail, return receipt requested,
unless otherwise specified herein.
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To AUDITOR:
Weaver and Tidwell, L.L.P.
Jerry Gaither, CPA
12221 Merit Drive, Suite 1400
Dallas, Texas 75251
To CITY:
City of Denton, Texas
George Campbell, City Manager
215 E. McKinney
Denton, Texas 76201
All notices shall be deemed effective upon receipt by the party to whom such notice is
given.
18.
Entire Agreement
This Agreement, including all Exhibits and Amendments annexed hereto and made a part
hereof, constitutes the entire agreement between the parties hereto with respect to the
subject matter hereof and supersedes all other oral or written representations,
understandings or agreements relating to the subject matter hereof. Neither party shall be
bound by the provisions of any pre-printed or other written terms and conditions
subsequent to the date of this Agreement relating to the subject matter hereof unless such
additional terms and conditions are authorized in accordance with this Agreement and
attached to and made a part of this Agreement. The
parties is incorporated by reference. If there is any
conditions of the Engagement Letter and this Agreement
Agreement shall prevail.
Engagement Letter between the
conflict between the terms and
, the terms and conditions of this
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19.
Severability
If any provision of this Agreement is found or deemed by a court of competent
jurisdiction to be invalid or unenforceable, it shall be considered severable from the
remainder of this Agreement and shall not cause the remainder to be invalid or
unenforceable. In such event, the parties shall reform this Agreement to replace such
stricken provision with a valid and enforceable provision which comes as close as
possible to expressing the intention of the stricken provision.
20.
Compliance With Laws
The AUDITOR shall comply with all federal, state, and local laws, rules, regulations, and
ordinances applicable to the professional services performed pursuant to this Agreement,
as they may now read or may hereafter be amended.
21.
Employment Practices/Discrimination Prohibited
In performing the services required hereunder, AUDITOR shall not discriminate against
any person on the basis of race, color, religion, sex, national origin or ancestry, age, or
physical handicap. AUDITOR agrees that in connection with the services to be provided
to CITY hereunder that it will comply with all applicable laws and regulations regarding
employment discrimination.
22.
Personnel/Conflicts of Interest
A. AUDITOR represents that it has or will secure at its own expense all professional
and support personnel required to perform all the services required under this
Agreement. Such personnel shall not be employees or officers of, nor have any
contractual relations with CITY. AUDITOR shall inform the CITY of any
conflict of interest under the professional standards of the AICPA or the Texas
State Board of Public Accountancy that may be discovered or arise during the
term of this Agreement.
B. All services required hereunder will be performed by AUDITOR. All personnel
engaged in work shall be qualified, and shall be authorized and permitted under
state and local laws to perform such services. The key person who will be
performing the services hereunder are
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23.
Assignability
AUDITOR shall not assign any interest in this Agreement and shall not transfer any
interest in this Agreement (whether by assignment, novation or otherwise) without the
prior written consent of the CITY.
24.
Modification or Amendment
A. No waiver or modification of this Agreement or of any covenant, condition or
limitation herein contained shall be valid unless in writing and duly executed by
the party to be charged therewith and no evidence of any waiver or modification
shall be offered or received in evidence in any proceeding arising between the
parties hereto out of or affecting this Agreement, or the rights or obligations of the
parties hereunder, unless such waiver or modification is in writing, duly executed;
and, the parties further agree that the provisions of this section will not be waived
unless as herein set forth.
B. No amendment of this Agreement shall be valid unless in writing and signed by
both parties.
25.
Force Majeure
Notwithstanding any other provision in this Agreement, AUDITOR shall not be liable or
held responsible for any failure to perform or delays in performing its obligations under
this Agreement, including but not limited to, the completion of the audit and issuance of
its report thereon, which result from circumstances or causes beyond AUDITOR's
reasonable control, including, without limitation, acts or omissions or the failure to
cooperate pursuant to this Agreement by CITY (including, without limitation, entities or
individuals under its control, or any of their respective officers, directors, employees,
other personnel and agents), fire or casualty, act of God, strike or labor disputes, war or
other violence, or any law, order or requirement of any governmental agency or authority.
26.
Miscellaneous
A. Venue of any suit or cause of action under this Agreement shall lie exclusively in
Denton County, Texas. This Agreement shall be governed by and construction
accordance with the laws of the State of Texas.
B. In accomplishing this engagement, AUDITOR shall take such steps as are
appropriate to coordinate the work involved with related work being carried on by
CITY.
RFSP 4033 Audit Services 5108
C. CITY shall assist AUDITOR by placing at the AUDITOR's disposal, all available
information pertinent to the engagement, including previous reports, any other
data relative to the engagement, and arranging for the access to, and making all
provisions for the AUDITOR to enter in or upon, public and private property as
required for the AUDITOR to perform services under this Agreement.
D. The headings of this Agreement are for informational purposes only and shall not
in any way affect the substantive terms or conditions of this Agreement.
E. Each party represents that it is authorized to enter into this Agreement and that the
individual executing this Agreement on behalf of the party, is authorized to enter
into this Agreement.
IN WITNESS WHEREOF, the City of Denton, Texas has caused this Agreement to be
executed by its duly authorized City Manager; and AUDITOR has executed this
Agreemen y d through its duly authorized undersigned Director on this the io
day of 2008.
"CITY"
CITY OF DENTON, TEXAS
BY: Ze_
GEORGE C. CAMPBELL, CITY
MANAGER
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:&,&-,
APPROVED AS TO LEGAL FORM:
JOHN M. KNIGHT, INTERIM CITY ATTORNEY
RFSP 4033 Audit services 5/08
"AUDITOR"
BY:
ATTEST:
RFSP 4033 Audit Scrvices 5/08
Appendix A
WEAVER
-WE-
TI D WELL
11.11.R
Cost Proposal for Professional Services - RFSP 9 4033
WEAVER
TI D W ELL
I-L.71
May 15, 2008
Mr. Tom Shaw
Materials Management Office
City of Denton
901-B Texas Street
Denton,TX 76209
Re: Cost Proposal for City of Denton for professional auditing services; RFSP# 4033
Dear Mr. Shaw:
On behalf of Weaver and Tidwell, L.L.P., Certified Public Accountants and Consultants, we would like to
submit our cost proposal for the professionaf audit services of the City's financial statements for the fiscal
years ending September 30, 2008, 2009 andj2010 with the option to renew for an additional two years
As the Firm's engagement partner for the engagement, I am authorized to contractually bind the Firm.
This proposal is a firm and irrevocable offer f'or a minimum period of 90 days, subsequent to the RFSP closing
date. If there are any questions, technical, contractual or otherwise regarding this proposal, please feel
free to contact me at 972.448.6918 or jlgaitY er@weaverandtidwell.com.
Sincerely,
Jerry Gaither, CPA _
Audit Partner
Weaver and Tidwell, L.L.P.
12221 Merit Dr., Ste. 1400
Dallas, TX 75251
Appendix A
ADDENDUMI
Cost Proposal Form
Total Cost Summary
Year
Not-to-Exceed
Amount-Gross
2008
$144,000
2009
$148,500
2010
$155,000
I Hours Standard Hourly Rate Billing Rate Total I
I Not-to-Exceed Cost - Gross Audit
Not-to-Exceed Cost Including Audit and Agreed upon Procedures $ 141000
2009 Cost Proposal Detail
Hours Standard Hourly Rate Billing Rate Total
Partners "60$300*$275a$ 16500
ManagerSt 120 x$225 $200
24000c r H
IMF-
300~ ~r
Su ervtso Staff ME
p ry $155 $Ibbmgm 46500
s
St'afflt~4r 500 $1.10 $110 X55000
k ' g u .s
Total hours/Personnel 980 $ 142000
Other Expenses (Credl stst )l
7:6 st * x~~ 1 _TN, $ n/a
ww" f. .rr,.
'&,~`.~~g",s,~~+,~-':v
Total Not-to-Exceed Cost - Gross Audit $ 142000
AdditionaPAgreed upon Procedures Fnancial
rce, rv zee .s -d k. ti.,.aa't't• 1=„ s?..~o-5g,?", r";+p- "`X.,~,,,>'.N",.E"asu
Assurance Legerrvto Ihe,Texas`Commission
En,vonentalr~u`"ahtyx-
Total Not-to-Exceed Cost including Audit and Agreed upon Procedures $ 145500
Page 1
Appendix A
ADDENDUMI
Cost Proposal Form
2010 Cost Proposal Detail
Hours Standard Hourly Rate Billing Rate Total
Not-to-Exceed Cost - Gross Audit
Not-to-Exceed Cost including Audit and Agreed upon Procedures $
Review of Official Statement 2.9 or Special Projects Cost Proposal Detail
Hours Standard Hourly Rate Billing Rate Total
hours/Personnel
Page 2
WEAVER
TIDwELL
Lt.?
Exhibit A
May 15,20D8
Mr. Tom Shaw
Materials Management Office
City of Denton
901-8 Texas Street
Denton, TX 76209
Re: Proposal for City of Denton for professional auditing services. RFSP# 4033
Dear Mr. Shah.
On behalf of Weaver and Tidwell, LLP., Certified Public Accountants and Consultants.I appreciate your
consideration of our proposal to provide audit services for City of Denton )the City). It is our understanding
the engagement will include audit services of the City's financial statements for the fiscal years ending
September 30.2M8. 2009 and 2010 with the option of renewing for each of the two subsequent fiscal years.
We are committed to performing the City's audit In the allotted time frame. We belleve we are the best
candidate for this engagement for a number of reasons.
• Weaver and Tidwell b very experienced In dealing with the nuances of govemmental accounting.
In fact, the Firm has a Public Sector practice with professionals dedicated to servicing public sector
clients. Addifionaly, our Firm has over five decades of experience assisting Texas local
- governmental entities with technical accounting problems.
• Year-round communication between the City of Denton nd Weaver o~ technical Is a pority. problems as
weaver and Tidwell offers ongoing support through on
part of the audit engagement rather than on an additional fee-for-service basis.
• We offer a well-trolned staff at each responsibility level in the engagement team • from partner to
staff accountant Our depth of governmental experience allows for the rotation of staff in
accordance v7ith City policy, while maintaining the hgFrest quality of experienced staff.
• Timely delivery of reports Is of key Importance. Weaver and Tiidwell's reputation has been built on
the timely delivery of quality work and we are committed to follow the schedule requirements of
the City.
As the firm's engagement partner for the engagement, l am authorized to contractually bind the Firm.
This proposal is a firm and irrevocable offer for a minimum period of 90 days. subsequent to the RFSP closing
date. If there ore any questions, technical, contractual or otherwise regarding this proposal, please feel
free to contact me W 972.448.6918 or kdther®weaverandfidwel.com.
Sincerely.
Jerry Goither, CPA
Audit Partner
12221. Mertt.Dr., Ste. 1400
Danes, TX 75251
III
WEAVER
TIDWELL
L.L.R
executive summary
Weaver and Tidwell, L.L.P., is pleased to present
this proposal to City of Denton for audit services.
The purpose of this proposal is to provide a clear
statement of our capabilities and knowledge in
light of your professional services needs.
We understand there are a number of issues of
importance to the City, including:
• An understanding of the work to be
performed
• Experience and qualifications of partner
- managers and assigned staff
• Public Sector and Governmental
accounting experience and
corrin riment to public practice
• Completeness and organization of our
response
• Reasonable fees
Timely services
Understanding of the work to be performed
Audit Scope
We will conduct an audit of the financial
statements for the City of Denton for the fiscal
years ending September 30, 2008, 2009 and 2010
with an option to renew for two additional years.
As part of our report on the basic financial
statements and combining and individual fund
financial statements, we will provide an "in
relation to" opinion on all contents of the
Financial Section other than required
supplementary information.
We will perform certain limited procedures
established by generally accepted auditing
standards on management's discussion and
analysis and other required supplemental
information. As part of the audit of the City's
financial statements, we will issue reports on
internal control and on compliance with
applicable laws and regulations. In accordance
with the TCEO, we will assist the City in
demonstrating compliance with the financial test
option for the sanitary landfill and the landfill gas
recovery system. We will also audit the schedule
of expenditures of federal awards.
In addition, a management letter will be issued
at the conclusion of the audit and will include
any deficiencies in internal control found during
the audit. Any illegal acts or irregularities will be
immediately reported to the Director of Finance.
Finally, all required communications under U.S.
Generally Accepted Auditing Standards will be
made to the Director of Finance.
Auditing Standards to be Followed
The audit for the City shall be performed in
accordance with Generally Accepted Auditing
Standards (GARS) as set forth by the American
Institute of Certified Public Accountants and the
standards for financial audits set forth in the
General Accounting Office's Government
Auditing Standards and the provisions of the
Single Audit Act and U.S. Office of Management
and Budget (OMB) Circular A-133, audits of
states, local governments, and non profit
organizations.
The audit will include tests of compliance of
matters that have a material impact on the
financial statements relating to procedures
established by Charter. City Ordinance, and
when applicable, state and federal laws or
regulations.
Experience and qualifications of principal officers
and assigned staff
Our engagement process includes a high level of
partner participation. Jerry Gaither. Partner, will
serve as the engagement leader. He will be
responsible for the overall engagement
management. His experience providing audit
services to governmental entities makes him
adept to the subtleties of your engagement.
Team members for this engagement were
selected for their technical ability, experience
and management skills. The management
personnel assigned to the engagement on a fulF
time basis include a Senior Manager. Working
with him will be a sufficient number of qualified
professional staff to complete the engagement
on a timely basis.
Weaver and idwell. LL.P.
Protesioml Services Proposal
III.
WEAVER
TIDWELL
L.L.P.
executive summary
Completeness and Organization of Response
To ensure the completeness of our response, the
organization of the response is designed to help
the City easily find information. The response is
structured in accordance with the RFP
requirements.
Reasonable Fees
We are function-specific in our task assignments,
assigning the lowest billable hour professional to
conduct the tasks within their capabilities With
appropriate supervision and review. By doing this,
we are able to reduce the overall blended rate,
thereby providing greater cost efficiency.
Timely Service
We have developed on approach by which
specific deliverables are achieved Within set
timefromes. We will work with you to develop a
timeline that meets your specific requirements
and details meeting dates, field work dates,
status reporting dates and final report dates.
Quality Matters
In our 50+ years of existence, Weaver and Tidwell
has never been a defendant in any audit failure
or alleged audit failure. Our confidence in the
quality of our work is evidenced by our voluntary
enrollment in the AICPA's Peer Review Program in
1980. Since that time, we have completed all
peer reviews with unmodified opinions.
Weaver and Tidwell has received an unmodified
opinion in every peer review performed and in
addition received a letter of "no comment" on its
last three peer reviews. This is the highest
standard of peer review and achieved by only a
small percentage of CPA Firms.
Weaver and Tjdwell. LLP.
Profesponal Services Proposal
WEAVER
TIDWELL
LL.£
Table of Contents
Firm Background I
Partner. Supervisory and Staff qualifications and Experience ............................................4
Prior Experience 7
Scope and Audit Approach ...............................8
Detailed Review of CAM ........................................................................................................18
Proposed Schedule .................................................................................................................19
Other References .....................................................................................................................20
Additional Data and Other Information:
Governmental Clients.......
Firm Overview
Why Weaver and Tidwell?
Affiliations
Peer Review
Industry Rankings
21
22
23
24
25
26
Attachment: Signed Addendum
weaver and ridweil. U.?.
Prolesional Services Proposal
1111
WEAVER
-W -
TIDWELL
L.L.P.
firm background
Location from which work will be done
The Firm maintains its headquarters in Fort Worth
and operates additional offices in Houston and
Dallas. This engagement will be serviced from our
Dallas office and will include a partner and senior
manager. Working with them will be a sufficient
number of quolified professional staff to
complete the engagement on a timely basis. The
regional nature of our practice, combined with
our philosophy of personal attention, ensures that
the City will have direct contact with firm
management. All our locations are full-service
offices.
Size of Firm/Government Audit Staff.
A regional firm founded in 1950, Weaver and
Tidwell, L.L.P., is the 63th largest certified public
accounting firm in the Nation and ranked
number one in the Southwest for the fourth year
in a row by Practical Accountant Magazine. The
Firm's staff of over 300 includes 140 certified
public accountants, including 39 partners. Our
governmental audit staff consists of
approximately 60 professionals.
Independence
Conformity with the rules of professional conduct
requires that a certified public accountant be
independent, in fact and appearance, with
respect to a client for whom he or she is issuing a
report on financial statements. [Texas State Board
of Public Accountancy Rules of Professional
Responsibility, sec. 501.11] Additionally, the Firm
meets the independence standards of
Government Audifing Standards.
The Firm and proposed audit team members of
Weaver and Tidwell are independent with
respect to the City, including direct and indirect
financial interest and relationship of the
proposed audit team to employees and council
members of the City.
Licensed to Practice in Texas
The Firm is licensed to practice accountancy in
Texas. Weaver and Tidwell, L.L.P., is a registrant
with the Texas State Board of Public
Accountancy under Section 14 of the Public
Accountancy Act of 1979, Texas Revised Civil
Statutes, article 41o-1. Each partner of the Firm
and each professional staff member assigned to
this engagement (senior associate level and
above) holds a certificate as a Certified Public
Accountant pursuant to that act.
Weaver and Tidwell is an Equal Employment
Opportunity firm.
Audit of Computerized System
The Firm's Assurance and Risk Advisory Staff has
the experience and resources of over twelve
computer specialists experienced in evaluating
computer controls. The Firm's computer
specialists have the abRity, to review all computer
control checklists completed by City's staff and
make additional inquiries and recommendations,
when appropriate.
Weaver and Tidwell, L.LP. Page I
Professional Services Roposd
CIS
WEAVER
TIDWELL
L.L.P.
firm background
Public Sector and Governmental Accounting
Expedience and Commitment to Governmental
Practice
Weaver and Tidwell has over 50 years of
experience auditing governmental entities
including municipalities, school districts and other
governmental organizations. Local government
clients have been among the most important to
the growth of our Firm since its founding in 1950.
Our professional staff is seasoned with the
intricacies of governmental accounting and
financial reporting. Please see our full list in the
additional data portion of this proposal.
The Firm's commitment to this practice segment
is demonstrated by:
Our practice Includes a unit of
approximately 60 staff dedicated to
local aovemment audifing and
management consulting as a practice
specialty. Each member of the group
has training and experience in the field
of local government auditing. The
benefits to clients are evident: not only
are Weaver and Tidwell audit staff
members better informed about
technical issues, but our attention to
those issues of the Public Sector practice
enhances our ability to make suggestions
and help our clients initiate change.
An Active Role In Professional
OraanizaNons. Members of our
professional staff are active participants
in governmental organizations. Jerry
Gaither, Richard Jones, and Kerry Caves,
audit partners, are associate members of
the Government Finance Officers
Association (GFOA). In addrtion, Jerry
Gaither, Kerry Caves, Shawn Parker, John
DeBurro and Michael Lentner are
members of the Special Review
Committee of the GFOA. Jerry Gaither is
also a Certified Government Finance
Manager and serves on the Technical
Issues Committee of the AICPA as liaison
to the Governmental Accounting
Standards Board. This not only provides
him with knowledge of the governmental
standards before enactment, but also a
role in helping shape those standards.
Weaver and Tidwell. LL.P.
Professional Services Proposal
Specific Experience in A-133 Audits.
Circular A-133, a publication of the U.S.
Office of Management and Budget,
promulgates standards for compliance
auditing under the Single Audi Act of
1984, as amended by the Single Audit
Act Amendments of 1996. Due to the size
of our public sector practice, we audit
numerous entities that receive federal or
state financid assistance requiring a
single audit. We are current auditors of
three muff mfunded entities that receive in
excess of $50 million of federal financial
assistance.
• Resource Allocallon. The Finn's practice
management plan includes the
continued growth of the local
government practice specialization with
continued investment of the resources
necessary to ensure technical skill
development.
Experience with Certificate of Achievement
Program
The Firm is the Auditor of approximately 25
entities currently receiving the GFOA certificate
of achievement program. The Firm has five
members of its staff that are currently members
of the Special Review Committee of the GFOA
that evaluate CAFR's for efigibifitywith Certificate
of Achievement Program requirements.
Page 2
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WEAVER
TIDWELL
L.L.P.
firm background
External Quality Control
Weaver and Tidwell is a member of the American
Institute of Certified Public Accountants (AICPAJ
Center for Audit Quality and the Government
Audit Quality Center. Membership in these
organizations is voluntary and requires a
commitment to the highest standards of
professional practice.
Every three years, the Firm engages an
independent accounting firm to determine it our
quality, control policies and procedures are
suitably designed, and if our techniques for
implementing these policies and procedures
comply with professional standards. External
peer review is designed to give the public
additional confidence in the quality of our audit
and accounting practice.
Weaver and Tidwell has successfully completed
all peer reviews to date. Each peer review has
included a review of governmental audit
Pending Utigation and Field Reviews
Weaver and Tidwell has no pending, threatened
or settled litigation related to the Firm's
accounting and auditing practice.
Three field reviews by the Department of Health
and Human Services and the Texas Education
Agency have been completed in the last three
years. There were no findings. We have been
notified by the Department of Health and Human
Services that our audit of financial statements
met Federal audit requirements with no findings.
We are not aware of the number of Federal or
State desk reviews that have been performed on
our audits in the lost three years. No findings have
been communicated to us. No disciplinary action
has ever been alleged and no action is pending
or has ever been undertaken against the Firm by
the SEC, AICPA. State regulatory bodies or other
professional organizations.
III
WEAVER
TIDWELL
L.L.P.
engagement team
Firm's Confinuing Education Program Policy
The Firm's continuing professional education policy requires all staff to receive 120 hours of continuing
education every three years. The governmental audit staff is required by GAGAS to obtain 80 hours, with at
least 24 hours relating to the governmental audit environment every two years. All governmental audit staff
complies with the revised government auditing standards requirement regarding formal education for
professionals responsible for planning, conducting or reporting on government audit engagements. Each
member of the engagement team has met the GAGAS requirement.
Policy Regarding Staff Rotation
We have a governmental engagement and practice planning process stressing experience and continuity
in the engagement team from year to year. We understand the City requires rotation of engagement staff
members on an interim basis. The depth of our governmental practice ensures the City will have
experienced professionals from year to year, even in years of rotation.
Weaver and Tidwell has an outstanding record for longevity of service. We have experienced limited
turnover at all levels and turnover at the partner/manager level is extremely low which allows us the ability
to provide you a stable and more experienced team which allows us to conduct a more efficient and less
intrusive oudt.
Changes in Assigned Engagement Staff
It is understood that the individuals specified in this proposal are the individuals who will actually perform
the work associated with the City's audit. The City reserves the right to approve or deny any change to the
assigned staff named in the proposal, whether such change occurs prior to or during this engagement.
Weaver and Tidwell will provide the City with resumes of any proposed substitute and shall be given the
opportunity to interview that person.
Weaver and Tic"L LLP. Page 4
Professional Services Proposal
Ifl
WEAVER
TID W ELL
L.L.P.
engagement team
Jerry L Gaither, CPA
Audit Partner
Practice Leader, Governmental Audit Practice
Certified Public Accountant, Texas
Education
Bachelor of Business Administration, Accounting, Texas Christian University
• Chairman, Weaver and Tiidwell's Local Govemments Group
A total of 157 hours of continuing professional education over the post three years
Professional Experience
30 years experience in public accounting
Joined Weaver and Tidwell in 1978: named a partner in 1987
Practice emphasis in accounting and auditing for a wide array of non-profit and governmental
entities and privately-held companies
Professional Awards, Activities and Memberships
• Member, Texas Society of Certified Public Accountants (TSCPA)
• Member, American Institute of Certified Public Accountants (AICPA)
• Former member, Strategic Planning Committee of the Town of Addison, Texas _
• Former member, Charter Review Commission of the Town of Addison, Texas
• Associate member, Government Finance Officers Association and member, Special Review
Committee
• Associate member, GFOAT
• Member, Association of Government Accountants
• Associate member. Association of School Business Officials and member, Panel of Review
• Certified Government Financial Manager
• Member, Technical Issues Committee to AICPA as a fiaison to the Govemment Accounting
Standards Board
weaver and Tdwell. LLP. Page 5
P,ofessional Services Proposal
lil
WEAVER
TIDWELL
L.L.F.
engagement team
John D@BURO, CPA
Audit Senior Manager -
Certfed Public Accountant, Texas
Education
• Bachelor of Science. Business Administration, University of New Hampshire
• Master of Science, Accounting, New Hampshire College
• A total of 154 hours of continuing professional education over the past three years
Professional Experience
• Beven years experience in public accounting
• Joined Weaver and Tidwell in 2004
• Practice emphasis in municipal auditing and accounting
Professional Activities and Memberships
• Member, American Institute of Certified Public Accountants (AICPA)
• Member, Texas Society of Certified Public Accountants (TSCPA)
• Member, Special Review Committee of Government Finance Officer's Association
Woaver and Tidwell, ILLY. Page 6
Profew~l Services Noposal
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WEAVER
TI®-
TIDWELL
L.L.P.
prior-experience
Similar Engagements with Other Government Entities
The Firm has a substantial Public Sector Audit Practice. We are currently the auditor of more than 30
governmental entities and over 50 multi-funded nonprofit organizations. Following is a rat of some
governmental audit engagements performed by the office of Weaver and Tidwell that will have
responsibirity for the City's audit within the past five years. A comprehensive fist of our governmental clients
can be found in the additional information section.
App.
Engagement
staff
Contact/Phone
Years
Partner
Type of Engagement
Hours
City of Grand
1200
Ms. Diana Orf z
2
Gaither
Financial and Single Audit
Prairie
Chief Financial Officer
972.237.8099
City of McKinney
800
Ms. Jennifer Fung
4
Gaither
Financial and Single Audit
Finance Director,
972547.7531
City of Frisco
750
Mr. Neil Lang
2
Gaither
Financial and Single Audit
Finance Director
972.292.5512
City of Lewisville
650
Ms. Lauren Crowly
12
Gaither
Financial and Single Audit
Director of Finance.
972.218.3400
City of Greenville
600
Mr. Steve Compton
10
Gaither
Financial Audit and
and Greenville
Director of Finance
Separate Audit of GEUS
Electric Utility
903.457.3114
System
Weaver and Tidwell, LL.P. Page 7
Pfofe5aonoi Services Proposal
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WEAVER
TID W ELL
L.L.P
scope and audit approach
The audit for the City shall be performed in
accordance with U.S. Generally Accepted
Auditing Standards (GAAS) as set forth by the
Americon Institute of Certified Public
Accountants the standards for financial audits set
forth in the General Accounting Office's
Government Auditing Standards, and the
applicable the provisions of the Single Audit Act
and U.S. Office of Management and Budget
(OMB) Circular A-133, audits of states, local
governments, and non profit organizations.
The audit will include tests of compliance of
matters that have a material impact on the
financial statements relating to procedures
established by Charter, City Ordinance, and
when applicable, state and federal laws or
regulations.
Commitment to perform the work within the
desired time period
Based upon the requirements of the City's RFP,
we have developed a calendar and timeframes
required by the City. The calendar, which
includes fieldwork dates, and various deliverable
dates, serves as both a communications and
monitoring tool for all of us. We take our
commitment to you seriously and will work
diligently with you to meet or exceed the
scheduled deadlines as indicated in our planning
and commitment calendar.
Management Letter
As a standard part of our audit, we will issue a
management letter draft to the Director of
Finance. The management letter will detail audit
findings and recommendations affecting
financial statements, internal controls,
accounting, data processing systems, legality of
actions, instances of noncompliance With laws
and regulations, and any other matters of
significance to the financial operations of the
City. The letter will be addressed to the
Honorable Mayor and Members of the City
Council, as appropriate,
weaver and Tdwer, LLP.
Profesional SeM9 Propo5al
!11
WEAVER
TID W ELL
L.L.P.
scope and audit approach
Report to the City Council
Also, as part of our audit, we will inform the City
Council of each of the following:
The auditor's responsibility under U.S.
generally accepted auditing standards
and government auditing standards
Significant accounting policies
Management judgments and
accounting estimates
Significant audit adjustments
Other information in documents
containing audited financial statements
Disagreements with management
Management consultation With other
accountants
Major issues discussed with management
prior to retention
Difficulties encountered in performing
the audit
Communications and conferences
During our engagement, we will discuss any
findings with the Director of Finance to confirm
facts before including in any report. Ongoing
communication With the Director of Finance and
other City personnel will be conducted as
needed, as well as the following conferences:
Entrance conference prior to interim
work
Exit conference at conclusion of interim
work
Entrance conference at beginning of
fieldwork
Progress conferences as requested
during fieldwork
Fait conference at the end of fieldwork
Conference when draft copy of
management letter is prepared
Presentation to the City Council
Weaver and rd ell, LLP. Poge 9
Professional Services proposal
WEAVER
TIDWELL
L.L.P.
scope and audit approach
Work Plan. Our approach consists of four work phases: initial engagement planning, interim fieldwork final
fieldwork and technical review.
Audit Process
Our audit process is a risk-based approach in which we identify potential. areas of risk that could lead to.
material misstatement of the basic financial statements and tailor our audit programs and allocate our
resources in performing the audit accordingly. We feel a key item in evaluating risk in an audit is not only
obtaining an understanding of the City's internal control, capabilities and quarification of personnel, but
also understanding the City's operations and accounting processes.
Initial Engagement Planning
Each year the Firm begins the audit with preparation of an engagement plan:
• Establish terms of engagement
• Review prior year work papers and financial statements
• Reach an understanding of operations and accounting practices
• Evaluate the accounting and data processing control environment
• Identify potential audit risks to allocate time appropriately
• Calculate preliminary estimate of materiality
• Perform preliminary analytical procedures to identify possible unusual or unexpected trends
• Communicate with audit committee general audit plan and obtain input regarding risk areas
• Evaluate factors affecting the scope, nature and timing of audit tests
• Refine budgeted audit work for engagement team members
• Communicate with City of Denton concerning engagement details and auditor/client
responsibilities
Weaver and ndwen. LLP. Poge 10
Pmfes inr [ Services Propowl
I61
III
WEAVER
TlAELL
LL.E
scope and audit approach
Proposed Segmentation
Level of staff and number of hours to be assigned to each proposed segment of the engagement.
Proposed Segmentation -
City of Denton Audit
Planning
Interim
Fieldwork
Final
Fieldwork
Review
Reporting
Total
Partners
15
-
5
30
50
Managers / Supervisory Staff
30
80
210
50
370
Staff
5
120
305
10
440
Total
50
200
520 J
90
860
Proposed Segmentation -
City of Denton Single
Audit
Planning
interim
Fieldwork
Final
Fieldwork
Review
Reporting
Total
Partners
2
-
-
8
10
Managers / Supervisory Staff
11
6
30
6
8
50
Staff
2
40
14
4
60
Total
10
70
20
20
120
W ewer Md lltlwe0. LLP. !'.ode i f
Pmfessomd Services Proposal
WEAVER
TtDWELL
LLL.P.
scope and audit approach
Obtain an Understanding of City of Denton
Operations
We will obtain an understanding of the City's
operations and consider aspects of the City that
could affect the scope and approach of the
audit. Consideration will be given to the following
areasAtems:
• The location of City facilities, services
provided and accounting transactions
generated by location
• The fiscal year budget
• The total number of employees
• Services provided by the City including
special programs, pilot programs, or
programs administered with state or
federal funding
• The nature of joint ventures, if any
• The existence and functions of on audit
committee
• The City's revenue sources
• The City's electronic data processing
(EDP) arrangements. We will assess the
types of hardware and software that the
City uses and the size of the EDP
department
• The nature of compliance auditing
requirements
• The organizational structure
• Laws, statutes and regulations governing
the general operations of the City
• The types of funds and account groups
• Significant internal or external events
which could include changes in:
management or key accounting
personnel, polices and procedures, long-
term debt, capital assets, legal
requirements, economic consideration,
and/or political environment
• Accounting problemsAssues
• Reporting/disclosure issues
Weaver and Tidwell, LLP.
ProreUmal Services Prop d
Establish the Audit Approach and Develop an
Audit Program
We will design an effective audit approach to
ensure that audit tests are efficient and that
repetitive procedures are avoided. We will
consider the nature, timing, and extent of the
tests to be performed and develop the audit
program accordingly. We will also modify the
audit program as needed to reflect changes in
conditions, unexpected results from tests of
operating effectiveness of internal accounting
controls, new information or unanticipated
activates. SAS No. 108, Planning and Supervision;
SAS No. 103, Audit Documentation; SAS 109,
Understanding the Entity and Its Environment and
Assessing the Risks of Material Mustatements; and
SAS 110, Performing Audit Procedures in
Response to Assessed Risks and Evaluating the
Audd Evidence Obtained provide guidance on
audit programs and work paper documentation.
A planning memorandum describing the overall
approach for the audit of the City of Denton will
be prepared and will include:
Audit Objectives
Audit staffing and responsibi6fies
The application of analytical procedures
The extent of supervision to be provided
A time budget for the engagement by
audit area
Materiality levels used for planning
A risk assessment as a relates to the
understanding of internal control
obtained to plan the audit
Work paper documentation guidelines
Page 12
.III
WEAVER
TIDWELL
L.L.P.
scope and audit approach
Additional procedures we will u0ize to assist in
the planning of the audit are to:
• Review prior year audit reports and work
papers
• Review reports issued during the year by
grantor agencies (i.e., federal, state or
other government agencies)
• Review current accounting/auditing
pronouncements for their impact on the
current year's audit
• Determine if there was significant
employee turnover within the City
• Determine if there were significant
changes in internal control
• Determine if there were significant
changes in the City's computer systems
• Determine if there are significant staff
concemslssues _
• Discuss with the client the assistance to
be provided to the auditor, i.e.,
schedules to be prepared and
availability of the client
• Review City Council minutes for the year
through the most current date available
• Review new contracts, agreements and
debt instruments entered into during the
year
Obtaining an Understanding of Internal Controls
As an integral part of our audit planning, we
complete questionnaires relating to internal
control, the City's operations, and accounting
processes. A more in-depth understanding of the
City of Denton's operations and accounting
processes will assist us in performing a more
thorough, efficient and effective audit as well as
enabling us to be in a better position to make
value added management comments. To assist
in assessing risk and allocating resources we will
review internal audit projects to identify areas
where the intemol audit department can assist us
in the engagement.
Weaver and Tidwel, L1.P.
Professional Services Proposal
SAS No. 55, Consideration of the Internal Control
Structure in a Financial Statement Audit; and SAS
No. 78, Consideration of Internal Control in a
Financial Statement Audit: An Amendment to
SAS No. 55 defines internal control as "a process -
effected by an entity's board of trustees.
management, and other personnel - designed to
provide reasonable assurance regarding the
achievement of objectives in the following
categories:
• Reliability of financial reporting
• Effectiveness and efficiency of
operations
• Compriance with applicable laws and
regulations
We will obtain an adequate understanding of
the City's infernal control related to the control
environment, risk assessment, control activities,
information and communication and monitoring.
This will be accomplished by:
Reviewing controls, and determining
whether they have been placed in
operation
Assessing the materiality of the various
account balances and transaction
classes
Evaluating the risk factors that could
affect the scope of testing
Approach In Reporting Compliance with Lows
and Regulations
In the course of planning the engagement, we
will obtain an understanding of the effects of
laws and regulations that have a direct and
material effect on the determination of amounts
in the financial statements. These steps will be
taken to determine laws and regulations subject
to audit tests:
• Discuss applicable laws and regulations
with the Director of Finance and legal
counsel, if indicated
• Utilize information from prior year work
papers
• Review certain grants and contracts
• Review City minutes -
• Obtain written representations from
management
Page 13
WEAVER
TIDWELL
L.L.P.
scope and audit approach
We will consider Internal control categories for
which testing is required in accordance With
OMB Circular A-f 33. These additional internal
control categories include:
Transactions are properly recorded and
accounted for to:
Permit the preparation of reliable
financial statements and Federal
reports
• Maintain accountability over assets
• Demonstrate compliance with laws,
regulations, and other compliance
requirements
Transactions are executed in
compliance with:
• Laws, regulations, and the provisions
of contracts or grant agreements
that could have a direct and
material effect on a Federal
program
• Any other laws and regulations that
are identified in the Compliance
Supplement
Funds, property, and other assets are
safeguarded against loss from
unouthor¢ed use or disposition
Specific requirements for major federal
financial assistance programs
• Activities allowed or unollowed
• Allowable cosh/cost principles
• Cosh management
• Davis-Bacon Act
• Eligibility
• Equipment and real property
management
• Matching, level of effort, earmarking
• Period of availability of Federal funds
• Procurement and suspension and
debarment
• Program income
• Real property acquisition and
relocation assistance
• Reporting
• Sub recipient monitoring
• Special tests and provisions
Weaver and ridwell, LP.
ProresionalSeMces Proposal
Interim Fieldwork
Testing of the internal control structure will be
performed during the interim fieldwork and is
planned to be completed prior to August 22,
2008.
Perform tests of accounting controls
Perform test for compliance with laws
and regulations
Review and evaluate data processing
activities
Design detail of audit programs for
substantive test work including specific
procedures to be applied based on
results of controls, significant audit areas
identified, and the preliminary estimate
of materiality
Perform interim substantive test work and
analysis of selected accounts
Approach to be taken in drawing audit samples
for purposes of tests of compliance
If R is determined the control structure will support
a reduced control risk assessment and reliance
on controls will reduce the amount of substantive
testing necessary to gather sufficient evidential
matter to support the opinion on the financial
statements, our next step is to design tests of
controls.
Our selection of individual transactions for control
testing will be a random sampling and the results
of our tests will be evaluated based on
nonstatistical methods for attribute sampling. The
tests of controls, if any, are to be performed
during interim fieldwork.
Audit Program
The selection of audit procedures and design of
audit programs is an exercise of professional
judgment on the part of audit team members,
guided by firm policies and our experience in
applying procedures to auditing problems. Our
audit programs are tailor-made for each
individual account. Our program will be based
on our tests of controls, our evaluation of inherent
risk significant audit areas and our preliminary
estimate of materiality.
Page 14
WEAVER
TIDWELL
L.L.E
scope and audit approach
Final Fieldwork
Final fieldwork will be performed after the year-
end closing of accounts. The final fieldwork
phase is planned to be completed by January
21, 2009 and will include the majority of the
substantive tests to be performed during the
engagement, including:
Perform audit tests and complete
preparation of audit work papers
Complete audit programs, procedures
and conclusions
Audit of conversion entries to
government wide financial statements
Discuss audit findings and adjusting
entries with Director of Finance
Obtain client representations and
attorney letters
Performance of Substantive Procedures
Once we have obtained an understanding of
internal control, we will determine the extent and
type of substantive procedures to be performed.
The ASLGU documents procedures which should
be performed for the various financial statement
accounts and transactions (e.g., cash and
investments, long-term debt, etc.). According to
SAS No. 22, Planning and Supervision; SAS No. 77
Amendments to SAS No. 22, Planning and
Supervision; the auditor should develop effective
and efficient audit programs which include audit
procedures that the auditor believes are
necessary to accomplish the objectives of the
audit.
The financial objective is to provide reasonable
assurance that the City of Denton will be able to
properly and accurately process, summarize.
and report financial data that are consistent with
the five assertions. The five assertions are:
• Existence or occurrence
• Completeness
• Rights and obligations
• Valuation or allocation
• Presentation and disclosure
Weaver and Tidweq LLP.
Professional Services Prapowl
Sample sixes and the extent to which statistical
sampling is to be used in the engagement
The nature and size of the City's operations
require that we design our procedures to include
sampling applications for certain accounts and
types of transactions. All sampling applications
will be performed in accordance with SAS No. 39,
Audit Sampling, and the AICPA Audit and
Accounting Guide, Audit Sampling. We
anticipate utilizing nonsfatLStical and probability
proportional to size sampling. Sample saes
cannot be determined in advance. We will
determine the most efficient sample sizes based
on our evaluation of the characteristics of the
population to be sampled.
Use of Technology
To enhance our audit efficiency, we utilize
technology where practicable. We utilize CCH
Engagement, a work paper maintenance and
trial balance program, which enables us to
essentially perform a paperless audit. Work
papers are linked to corresponding work papers
for ease of access and staff assigned to the
engagement can share files via a local area
network Financial data can be downloaded
directly into the software for preparation of trial
balances, performance of analytical procedures
and to assist in financial statement preparation.
We also have the capability to utilize Act, (Audit
Command Language) which is a data extraction
program that will enable us to perform certain
procedures on large data files. For example we
can review the City's check register for duplicate
payments, unapproved vendors, and unusual
patterns in checks written. We may also review
utility billing registers for appropriate deposits
based on initial date of service. We can review
payroll records for unusual attributes.
Page 15
Ili
WEAVER
TIDWELL
L.L.P.
scope and audit approach
Ana"cal Procedures
Weaver and Tidwell utilizes analytical procedures
extensively in the planning, performance and
review of the engagement through evaluations
of interrelationships of both financial and
nonfinancial data. Analytical procedures
include:
Comparison of financial information with
comparable prior periods giving
consideration to known changes (for
example, comparison of revenues
e)penditures/expenses with comparable
interim periods and balances for unusual
or unexpected variations)
Comparison of actual with onficipated
results (for example, comparisons of
revenues, expenditures/expenses with
budgeted amounts or expected results)
Evaluation of relationships among
elements oi '^ancial information Within
the period (e.g.. -^.ceivables in relation
to billings, revenue. 'n relation to costs)
Evaluation of financial information with
relevant nonfinancial information
Weaver and TidA L. LL.P.
Pmfestional Services Proposal
Technical Review and Reporting
The final phase of the abdit will begin as final
fieldwork ends. Activities to be completed during
the technical review phase of the audit include:
Engagement partner review of all work
papers to ensure compliance with
technical standards
Technical review of 00 work papers
Conduct conference to review financial
statements, auditor's opinion, and the
preliminary management letter
comments
Obtain written representations from
management - -
Perform final analytical procedures
Issue opinion on basic financial
statements, combining and individual
fund financial statements and schedules,
management letter, and report to the
Audit & Finance committee
Upon completion of fieldwork, the engagement
partner will review the entire engagement, with
particular attention to significant audit areas.
The report and work papers will be reviewed by
the engagement team technical reviewer, with
the work papers available, to determine the
completeness with which the engagement has
been performed. The auditor's review will
determine whether judgments made by others
are reasonable in relation to the supporting data
and to generally accepted accounting
principles, auditing standards, government
auditing standards and firm policy.
Porre 16
!I!
WEAVER
TI a W ELL
L.G.P.
scope and audit approach
Report Format
Following the completion of the audit of the fiscal
year's financial statement, we will issue:
• A report on the fair presentation of the
financial statements in conformity with
US. generally accepted accounting
principles
• A report on the internal control structure
based on the auditor's undersfandiing of
the internal control and assessment of
control risk
• A report on compliance with applicable
laws and regulations
• A report on compliance and on internal
control over compliance applicable to
the major federal and state award
programs in accordance with the U.S.
Office of Management and Budget
Circular A-133 and the Texas Uniform
Grant Management Standards, if
applicable.
In the required reports on compliance and
internal controls, we will communicate any
significant deficiencies in internal control found
during the audit. A significant deficiency is
defined as a control deficiency, or combination
of control deficiencies, that adversely affects the
entity's ability, to initiate, authorize, record,
process, or report financial data refiably in
accordance With GAAP such that there is more
than a remote likelihood that a misstatement of
the entity's financial statements that is more than
inconsequential will not be prevented or
detected.
Significant deficiencies that are also material
weaknesses will be identified as such in the
report. Non-significant deficiencies discovered
will be reported in a separate letter to
management, which shall be referred to in the
reports on compliance and internal controls.
Weaver and TldweA, LL.P.
P,af=lonal Services Proposal
Assistance to be provided by the City
In consultation With the City's Director of Finance,
the Firm will identify all schedules customarily
prepared by the City in conjunction with the
annual audit. The Firm's objective is to allocate
only those tasks to the City work product that will
result in the greatest cost-efficiency overall.
Page 17
Identification of Anticipated Potential Audit
Problems
We do not anticipate any audit problems.
WEAVER
TIDWELL
L.d P
detailed review of CAR
Comprehensive Annual Rnancfai Report
We will review the City's CAR to determine if His
in the format and contains the content necessary
to ensure the retention of the City's Certificate of
Achievement for Excellence in Financial
Reporting by the GFOA. The CAR will be
reviewed by a staff member who serves on the
GFOA SRC. In addition, we will assist the City in
drafting appropriate responses to the GFOA's
comments.
Weaver and rdve$ LLP. Page 78
Professional Services Proposal
WEAVER
TIDWELL
L.L.£
proposed schedule
Firm's ability to meet the timelines Indicated In the RFP
The schedule below indicates the dates of deliverables. We will work with the City to adhere to the
schedule. -
Timing
Interim audit fieldwork and control testing
August 11-22
Physical Inventory
September 29-30
Fiscal year-end
September 30
Start of September close of Oracle accounting system
October 14
Audit closing folders are available to auditors and
auditors begin year-end work
December 8
Interim CAR government-wide exhibits
December 22
CAFR draft delivered to auditors for review
December 28
Notes, MD&A, transmittal letter
January 5
Statistical section and complete CAFR delivered to
auditors
January 9
Draft management letter, audit committee letter and
single audit reports due
January 14
All fieldwork should be completed and CAR draft
returned to the Controller with an corrections noted
January 21
CAR Completed
January 23
CAR taken to Reprographics for printing
January 30
Audis reports presented to Audit/Finance Committee
and Council
February 17
Weaver and Ta9.vell. LLP. Page 19
Prolealonol Se kC Proposal -
WEAVER
TIDWELL
L.L.P..
other references
As requested, the following describes recent local and regional auditing experience similar to the type of
audit City of Denton has requested.
App.
Engagement
staff
Contact / Phone
Yrs
rafter
Type of
Hours
Engagement
City of The Colony
500
Ms. Rebecca Koo
8
Parker
Financial and Single Audit
Director of Finance
972.624.3140
City of Desoto
500
Ms. Cornelia Browder
4
Gaither
Financial and Single Audit
Director of Finance
972230.9635
Town of Addison
500
Mr. Randy Moravec
6
Gaither
Financial Audit
1
Finance Director,
972.450.7050
Weaver and rKtwall. LLP. Page 27
Profemonal Services naposal
a■`es
B
WEAVER
TIDWELL
L.L.F.
additional data and other information - governmental clients
The following is (3 partial fist of governmental clients for whom we provide professional services.
Municipalities
Other Local Governments
City of Alen, Texas`
Desoto Economic Development Corporation
City Of Benbrook'
Desoto Regional Dispatch Center
City of The Colony'
Ells County Rural Rail Transport
City of Desoto'
Greenville Electric Utility System
City of Euless, Texas'
Metropolitan Area (Fort Worth) Ambulance
City of Frisco`
Authority
City of Grand Prairie-
Midlothian Community Development
City of Greenvale, Texas`
Corporation
City of Haltom City
Midlothian Development Authority
City of Lancaster'
North Texas Central Council of Governments-
City of Lewisville- -
North Texas Municipal Water District
City of McKinney
Tarrant Appraisal District
City of Midlothian
Tarrant County
City of Sochse'
City of Saginaw'
City of Seagoville"
`Recipient of GFOA Award for Excellence in
City of Southloke•
Financial Reporting
City of Springtown, texas`
+Recipient of ASBO Award for Excellence in
City of University Park'
Financial Reporting
City of, Watauga, Texas"
Town of Addison`
The Town of Highland Park'
'
Town of Northlake
Town of Trophy Club
Independent School DEstrich/Educatlon
Birdville ISD
Fora Worth ISD•/+
Education Service Center, Region XI
Grand Prairie ISD'/+
Grapevine/Colleyville ISD•/+
Hurst{vless-Bedford ISD'/+
Highland Park ISD`/+
Irving ISD•/+
Keller ISD
Lewisville ISD*/+
Mesquite LSD
Plano ISD`
Wylie ISD
Tenant County College District-
North Texas Higher Education Authority
Weover and iCwe L LLP.
Pmfess onal services Pmp=i Pope 21
III
WEAVER
TIDWELL
L.L.P.
additional data and other information - firm overview .
Weaver and Tidwell, L.LP., is among the top
100 certified public accounting firms in the
nation according to the 2007 Public
Accounting Report Top 100 Finns fist, and is
ranked the largest regional independent
accounting firm in the Southwest by Practical
Accountant magazine. The Firm operates
offices in Fort Worth, Dallas and Houston with
over 300 team members, including more than
140 certified public accountants and three
licensed attorneys. Affiliations through Baker
Tilly International allow for service delivery
nationally and worldwide. The Firm's client
base includes private and publicly held
business enterprises. local governments,
municipalities, nonprofits and individuals.
Mission
Weaver and Tidwell, L.L.P., and its affiliates are
committed to excellence. Our mission is to
provide our clients the highest quality, client-
oriented, professional services with an exiro
measure of personal attention through an
organization where our people succeed.
Services
• Assurance
• Accounting
• Tax
• Estate Planning/Wealth Transfer
• Risk Assessment
• Internal Audit
• IT Audit
• SOX Consulting
• Business valuation Services
• Consulting Services
• Profit Enhancement
• Information Technology Services
• Litigation Support
• Property Tax Consulting
• Cost Segregation
• State and Local Tax
• International Tax
Industries Served
Local Government
• Manufacturing and Wholesale
Distribution
• Oil and Gas
• Technology
Retail
• Real Estate
• Construction
• Hospitality/Restaurant
Nonprofit
• Professional Services
• Arts and Entertainment
Education
• Financial Industry
• Health Care
• Private Foundations
Weaver and Tidwell. LLP. Poge 22
Pmfes and Services Proposal
Weaver and Tidwell provides clients in all
industries with assistance in traditional
accounting services and specialized services.
WEAVER
TIDWELL
L.L.P
additional data and other information - why weaver and tidwell?
Offering the resources of a national or
International firm without the excessive fees
Our local headquarters, combined with strategic
national and intemational affiliations, allows us to
offer you the resources of a large firm without the
fees required to support national or international
overhead.
Committed to your complete satisfaction
The only goal you can't accomplish is the one
you don't go afferl Our mission is to help you
identify and achieve your financial goals. As
such, we promise to deliver professional services
that add "measurable" value.
Providing "awesome" client service
Members of your engagement team, including
senior management, will communicate with you
in a timely and courteous manner all year long,
not just during your engagement. As a Firm and
as individuals, we place great value on building
long-term relationships, and providing
outstanding service is one way we accomplish
this.
Understanding your needs
As your professional services provider, we have a
responsibility to learn your business and
understand your needs. To accomplish this, we
utilize comprehensive, industry-specific research
tools to identify and address the issues facing
you.
RecognWng knowledge is power
Each member of our client-serving staff participates in a rigorous program of continuing professional
education so that we can assist you with the process of translating complex information into knowledge.
and knowledge into decisions. We also have several specializations represented within the Firm including
accredited business valuators, accredited estate planners, certified financial planners, certified fraud
examiners, certified profit enhancement consultants, licensed attorneys and personal financial specialists.
Taking a proactive stance on your behalf
We strive to help you reach your financial goals by informing you of relevant law changes or additional
services we can provide to help you seize the opportunifies and conquer the challenges along the way. In
addition to accounting, audit and tax services, we offer numerous specialized services including some
focused on specific industries. Let Weaver and Tidwell be your "one stop shop" for professional services.
Weaver and TIW,II, LL.P. - Page 23
Professional Services Proposd
WEAVER
TI D W ELL
L L.e
additional data and other information - affiriations
an independent member-of
Conce
; Ph
BAKER TILLY
INTERNATIONAL
Weaver and Tidwell, L.L.P., has provided
qualified plan administration for more than
As a member of Baker Tilly International, the
30 years. The continued growth and success -
world's 8th largest accounting firm network,
of this division led to the creation of a
we have the resources necessary to service
separate affiliate, Retirement Plan Concepts.
our dents world-wide.
It provides the following services:
With 138 firms in 104 countries, the Baker Tilly
• Retirement plan consulting and
connection provides dents with the
administration
assistance of local and regional accounting
• 401(k) Profit Sharing Plans
firms worldwide. A key benefit to our clients is
• Employee Stock Ownership Plans
the fact these services are provided by
(ESOP)
members of the local business community in
• 403(b) Plans
each country, with people knowledgeable
• Simple Plans
about the cultural, political and economic
• New Comparability and Age-
forces in the area, as well as the technical
Weighted Plans
requirements of local tax law and
• Cafeteria Plans
professional accounting standards. Our
• Consulting on plan design,
partners attend conferences and visit locally
establishment and implementation
with many of our Baker Tilly colleagues and
• Review of existing plans and
can rely on their services to our clients.
operations
• Coordinate with current investment
provider
Weaver and Tidwell
Financial Advisors, Ltd.
R gWered I.I nent Adviser
Weaver and Tidwell Financial Advisors. Ltd.,
provides Comprehensive Wealth
Management solutions to individuals and
businesses to assist them in building,
preserving and distributing their wealth.
Weaver and ridael, LLP. Page 26
Professional Services Propose!
III
E
VR
TID W ELL
L.L.P.
additional data and other information - peer review
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ofthc dfnm's awwmfng and auditing practce In accordance with PCAOB requbmmmts Asystem of
caawaos quality eoa rd encompasses do film's mponvatimd anmaae ad the paboies adopted and
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September 27, min
Weever and TidwelL LLP. Page 25
Prolessiomf seMces Proposal
WEAVER
TIDWELL
L.L.P.
additional data and other information - industry rankings
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Weaver and Tidwell, L.L.P., is the
only Texas-based independent
accounting firm on Public
Accounting Report's America's
100 Largest Public Accounting
Firms fist.
Additionally, Weaver and
Tidwell is consistently listed
among the top accounting firms
in DFW in both the Fort Worth
Business Press and Dallas
Business Journal Book of Lists.
Practical Accountant Magazine
has ranked Weaver and Tidwell
as the largest firm in the
Southwest in its annual Top
Regional Accounting Firms fists
for four years in a row.
Dallas Business Journal Best
Places to Work 2006 Weaver
and Tidwell, L.L.P., is recognized
as one of 15 Best Places to Work
in DFW by the Dallas Business
Journal in the mid-sized
company category.
Our firm's success is a direct
reflection of the dedicated
individuals who work here.
Weaver and Tidwa. LLP.
Professional Services Proposal
Page 26
Purchasing Department
901-B Texas St.
Denton, TX 76209
(940) 349-7100
www.dentonpurchasing.com
ADDENDUM # 1
RFSP # 4033
Audit Services
BIDS DUE: May 15, 2008 @ 2:00 PM
Bid submitted by:
Weaver and Tidwell, LLP
Company Name
RFP # 4033 - ADDENDUM # 1
Addendum # 1 to be returned with Bid Proposal
The following are responses to questions asked at the pre bid
meeting held on April 30, 2008.
SEE ATTACHED (1) QUESTION AND ANSWER SHEET (2) COST PROPOSAL FORM
IN EXCEL FORMAT
NO OTHER CHANGES AT THIS TIME.
This form shall be signed and returned with your bid
Name. Jerry Gaither
Signature?
Company.
Weaver and Tidwell, LLP
Title:
CPA, Partner
Date.
May 15, 2008
RFSP 4033-ADDENDUM 1
May 2, 2008
To: Tom Shaw,
From: Harvey Jarvis, Controller
Re: Follow-up responses to the Pre-bid meeting RFSP #4033 - Audit Services
Listed below are the responses to the questions that were asked at the pre-bid meeting for
RFSP #4033. These responses are from Steve Shephard, the head of the City's Internal Auditor
Department.
Question: What will be Internal Audit's participation in the annual audit?
Answer: Not planning on participating
Question: The auditors would like a Bio on you and Paul.
Answer: Denton's Internal Audit group is headed by Steve Shepherd, who was hired in June
2007 to be Denton's City Auditor; the new function reports directly to Council for the first time
in Denton's history. Shepherd has 25 years experience in the Internal Auditing field in both the
corporate and municipal government environment Shepherd obtained his municipal experience
serving as the City Auditor in Garland where he built a similar function from scratch and spent
the last 11 years; previous to Garland, he built a construction audit function from swatch in Fort
Worth where he spent 9 years. Shepherd recently passed the CPA exam, and he has an MBA in
Finance as well as the Certified Internal Auditor (CIA) and Certified Government Auditing
Professional designations to his credit.
Paul Brown joined Denton in December 2007 as a Senior Auditor. Paul has more than 7 years'
internal auditing experience including stints at UTA and the City of Albuquerque. Paul, too, is
well decorated, holding both a CPA and a CIA Paul has both a BBA in Finance and a Master of
Science in Accounting from UNT. Paul recently moved back to this area to be nearer to family.
Question: The auditors would like to know the testing your office has done on the City's
internal controls and could they review that work.
Answer: We perform testing on internal controls in the areas in which 'we perform internal
audits. So far, we've performed audits in the P-card program, the Police Property Room, the
EMS program and the construction of the DME Admin Bldg.