HomeMy WebLinkAboutResolution - 2018-R0223 - Weaver And Tidwell - 07/12/2018Resolution No. 2018-0223
Item No. 6.4
July 12, 2018
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock is hereby authorized and directed to execute for
and on behalf of the City of Lubbock, Contract No. 14102 for an Audit of Annual Financial
Statements as per RFP 18-14102-MA, by and between the City of Lubbock and Weaver and
Tidwell, L.L.P., of Dallas, Texas, and related documents. Said Contract is attached hereto and
incorporated in this resolution as if fully set forth herein and shall be included in the minutes of
the City Council.
Passed by the City Council on
ATTEST:
Reb cca Garza, City Setar
APPROVED AS TO CONTENT:
July 12, 2018
D. u Koste ch, Chief Financial Officer
APPROVED AS TO FORM:
Jelli Leisure, Assistant City
Attorney
DANIEL M. POPE, NKYOR
ccdocs)'RES.Service Contract 14102.Audit of Annual Financial Statements
06.27.28
CERTIFICATE OF INTERESTED PARTIES FORM 1295
loll
Complete Nos. 1- 4 and 6 if there are interested parties.
OFFICE USE ONLY
Complete Nos.1, 2, 3, 5, and 6 if there are no interested parties.
CERTIFICATION OF FILING
Certificate Number.
i
Name of business entity filing form, and the city, state and country of the business entity's place
of business.
2018-356956
Weaver and Tidwell, L.L.P.
Fort Worth, TX United States
Date Filed:
05/21/2018
2
Name of govemmental entity or state agency that is a party tot the contract for which the form is
being filed.
City of Lubbock
Date Acknowledged:
07/09/2018
3
Provide the Identification number used by the governmental entity or state agency to track or identify the contract, and provide a
description of the services, goods, or other property to be provided under the contract.
RFP 18-14102-MA
Annual Financial Audit Services
4
Name of Interested Party
City, State, Country (place of business)
Nature of interest
(check applicable)
Controlling
Intermediary
5
Check only If there is NO Interested Party. a
X
6
UNSWORN DECLARATION
My name is and my date of birth is
My address is
(street) (city) (state) (zip code) (country)
I declare under penalty of perjury that the foregoing is true and correct.
Executed in County, State of on the day of , 20
(month) (year)
Signature of authorized agent of contracting business entity
(Declarant)
Forms
provided by Texas Ethics Commission www.ethics_state_tx.us VPrcinn Vt n 569Z
CERTIFICATE OF INTERESTED PARTIES
FORM 1295
1011
Complete Nos. 1-4 and 6 If More we Interested parties.
Compete Nos. 1, 2, 3, 5, and 6 8 there are an interested parties.
OFFICE USE ONLY
CERTIFICATION OF FILING
CeNflrate Number:
2018-356956
Date Filed:
1 Name of business mtlry filing farm, and the city, state and country of the business
ortasiness.
Weaver and Tidwell, L.L.P.
Fan Worth, TX United States
entity's place
2 Name of governmental entity or state agency that isa party tothe contract for which
being filed.
City of Lubbock
the form Is
0512L2018
Date Acknowledged:
a Provide the Identification number used by the governmental entity or state agency to track or idendfy Me contract, and provide a
description of Me services, goods, or other property to be provided Under the contracL
RFP 18-14102-MA
Annual Financial Audit Services
4
Name of Interested Party
City, State, Country (piece of business)
Nature of Interest
(check sppilea al.)
Controlling
Intermediary,
5 Check only if Mere is NO Interested Parry.
X
6 UNSWORN DECLARATION
My name is larzy CtlMe.
My address is 1=1 Mem Drim State 14M Dagss
TX 75251 USA
(meet) (city)
I declare under penalty of perjury that the foregoing Is tore and correct.
6xeuned In DilW my, Santa of Texas
Si store a
hhoh) (alp code) (coumry)
L.,,qe NM tlgY of May 2018 ,
aVzed agent of contracting business entity
Ipedanml
Forms provided by Texas Ethics Commission . Mirs_sMte.M.us
veminn U1 n 557g
Resolution No. 2018-0223
City of Lubbock, TX
Audit of Annual Financial Statements
Contract 14102
THIS CONTRACT made and entered into this 12th day of July 2018, by and between the City of
Lubbock ("City"), and Weaver and Tidwell, L.L.P. (Firm).
RECITALS
WHEREAS, the City has issued a Request for Proposals 18-14102-MA Audit of Annual Financial
Statements.
WHEREAS, the proposal submitted by the Firm has been selected as the proposal which best
meets the needs of the City for this service; and
WHEREAS, Firm desires to perform as an independent Firm to provide services upon terms and
conditions maintained in this Agreement; and
NOW THEREFORE, for and in consideration of the mutual promises contained herein, the City
and Firm agree as follows:
City and Firm acknowledge the Agreement consists of the following exhibits, which are attached
hereto and incorporated herein by reference, listed in their order of priority in the event of inconsistent or
contradictory provisions:
1. This Agreement
2. Exhibit A — General Requirements
3. Exhibit B — Proposal and Price Proposal
4. Exhibit C — Insurance
Scope of Work
Firm shall provide the services that are specified in Exhibit A. The Firm shall comply with all the
applicable requirements set forth in Exhibit B, and C attached hereto.
Article 1
1.1 The City is seeking the services of a qualified certified public accountant firm to audit the
City's financial statements, perform the Federal and State Single Audits, perform the
Passenger Facility Charge (PFC) audit, perform agreed -upon procedures for the Texas
Commission of Environmental Quality, and prepare the accompanying reports for the fiscal
years ending September 30, 2018 through 2022.
1.2 This contract shall remain in effect until the expiration date, performance of services
ordered, or termination by either party with a thirty (30) day written notice. Such written
notice must state the reason for cancellation. The City of Lubbock does not guarantee any
specific amount of compensation, volume, minimum, or maximum amount of services
under this proposal and resulting contract.
1.2 The Finn shall not assign any interest in this Agreement and shall not transfer any interest
in the Agreement, whatsoever, without prior consent of the City.
1.3 All funds for payment by the City under this Agreement are subject to the availability of an
annual appropriation for this purpose by the City. In the event of non -appropriation of
funds by the City Council of the City of Lubbock for the goods or services provided under
the Agreement, the City will terminate the Agreement, without tennination charge or other
liability, on the last day of the then -current fiscal year or when the appropriation made for
the then -current year for the goods or services covered by this Agreement is spent,
whichever event occurs first. If at any time funds are not appropriated for the continuance
of this Agreement, cancellation shall be accepted by the Finn on 30 days prior written
notice, but failure to give such notice shall be of no effect and the City shall not be
obligated under this Agreement beyond the date of termination.
Article 2 Miscellaneous.
2.1 This Agreement is made in the State of Texas and shall for all purposes be construed in
accordance with the laws of said State, without reference to choice of law provisions.
2.2 This Agreement is performable in, and venue of any action related or pertaining to this
Agreement shall lie in, Lubbock, Texas.
2.3 This Agreement and its Exhibits contains the entire agreement between the City and Finn
and supersedes any and all previous agreements, written or oral, between the parties
relating to the subject matter hereof. No amendment or modification of the terms of this
Agreement shall be binding upon the parties unless reduced to writing and signed by both
parties.
2.4 This Agreement may be executed in counterparts, each of which shall be deemed an
original.
2.5 In the event any provision of this Agreement is held illegal or invalid, the remaining
provisions of this Agreement shall not be affected thereby.
2.6 The waiver of a breach of any provision of this Agreement by any parties or the failure of
any parties otherwise to insist upon strict perfonnance of any provision hereof shall not
constitute a waiver of any subsequent breach or of any subsequent failure to perform.
2.7 This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, representatives and successors and may be assigned by Firm or the City to
any successor only on the written approval of the other party.
2.8 All claims, disputes, and other matters in question between the Parties arising out of or
relating to this Agreement or the breach_ thereof, shall be formally discussed and negotiated
between the Parties for resolution. In the event that the Parties are unable to resolve the
claims, disputes, or other matters in question within 30 days of written notification from the
aggrieved Party to the other Party, the aggrieved Party shall be free to pursue all remedies
i.vi ilable at law or in equity.
2.9 At any time during the tern of the contract, or thereafter, the City, or a duly authorized
audit representative of the City or the State of Texas, at its expense and at reasonable times,
reserves the right to audit Finn's records and books relevant to all services provided to the
City under this Contract. In the event such an audit by the City reveals any errors or
overpayments by the City, Firm shall refund the City the full amount of such overpayments
within 30 days of such audit findings, or the City, at its option, reserves the right to deduct
such amounts owing the City from any payments due Firm.
2.10 The City reserves the right to exercise any right or remedy to it by law, contract, equity, or
otherwise, including without limitation, the right to seek any and all forms of relief in a
court of competent jurisdiction. Further, the City shall not be subject to any arbitration
process prior to exercising its unrestricted right to seek judicial remedy. The remedies set
forth herein are cumulative and not exclusive, and may be exercised concurrently. To the
extent of any conflict between this provision and another provision in, or related to, this do.
2.11 The Firm shall not assign or sublet the contract, or any portion of the contract, without
written consent from the Director of Purchasing and Contract Management. Should
consent be given, the Firm shall insure the SubFirm or shall provide proof of insurance
from the SubFinn that complies with all contract Insurance requirements document, this
provision shall control.
2.12 The Finn warrants that it complies with Chapter 2270, Subtitle F, Title 10 of the Texas
Government Code by verifying that:
(1) The Firm does not boycott Israel; and
(2) The Firm will not boycott Israel during the term of the Agreement.
2.13 SB 252 prohibits the City from entering into a contract with a vendor that is identified by
The Comptroller as a company known to have contracts with or provide supplies or service
with Iran, Sudan or a foreign terrorist organization.
[Signatures on following page]
IN WITNESS WHEREOF, this Agreement is executed as of the Effective Date.
CITY OF LUB
CK, TX:
F
irm ignature
DANIEL M. POPEU
MAYOR
AV T:
-- -t&t—w j.
Rebec a Garza, City ecret ry
APPROVED AS TO CONTENT:
L D. Blu Koste ch, Chief Financial Officer
APPROVED AS TO FORM:
VAh , -?' YJznJ A
-
K Ili Leisure, As istant City Atto y
Print d Name
Title
City of Lubbock
Audit of Annual Financial Statements
Request for Proposals
RFP 18-14102-MA
1 INTENT
Exhibit A
a) The City of Lubbock (hereinafter called "City") is soliciting Proposals from interested auditor
is (hereinafter called "the auditor") to provide Professional Audit Services.
b) The information contained within this document is intended to provide interested auditors with
the requirements and criteria that will be used to make the selection.
2 GENERAL INFORMATION
a) The City is seeking the services of a qualified certified public accountant firm to audit the
City's financial statements, perform the Federal and State Single Audits, perform the Passenger
Facility Charge (PFC) audit, perform agreed -upon procedures for the Texas Commission of
Environmental Quality, and prepare the accompanying reports for the fiscal years ending
September 30, 2018 through 2022.
b) The City is a municipal corporation governed by a Mayor -Council forn of government. There
is a City Manager, Chief Financial Officer, Chief Operating Officer and four Assistant City
Managers as well as various divisional directors and department heads.
c) The City has an Audit and Investment Committee that is involved in the selection of the
auditor. They monitor the progress and results of the financial statement audit, ensure that
control weaknesses and legal compliance violations identified in the course of the financial
statement audit are promptly and effectively remedied, serve as a direct communication
between the independent auditor and the City Council, and monitor the adequacy of the City's
internal control structure on an ongoing basis.
d) The City's fiscal year begins on October 1 and ends on September 30.
e) The City provides the following services to its citizens: public safety (police and fire), public
works, parks and recreation, public health, electric, water, sewer, solid waste, stormwater
utilities, airport, and general administrative services.
f) More detailed information on the government can be found in the 2017 City of Lubbock
Comprehensive Annual Financial Report (CAFR) and in the 2018 City of Lubbock Annual
Operating Budget at httpsalmylubbock.us."departmental-websites/departments/finance/dome.
g) Contract initiation date: Upon acceptance by the City Council, for audit of the fiscal year
ending September 30, 2018.
3 SCOPE OF SERVICES REQUESTED
The following Scope of Work is to be provided by the successful auditor:
Y43! e ave YAo�
June 27, 2018
Ms. Marta Alvarez
Director of Purchasing and Contract Management
City of Lubbock
1625 1311 Street
Lubbock, Texas 79401
RE: Best and Final Offer for Professional Auditing Services — RFP #18-14102-MA
Dear Ms. Alvarez and City leaders:
Thank you for requesting a best and final offer (BAFO) for Weaver to perform the City's annual
financial audit as described in your Request for Proposals named above. In submitting this offer,
I certify that I am authorized to submit this bid and bind the firm in a contract with the City of
Lubbock.
Best and Final Offer
Not -to -Exceed Fixed Annual Fee, Fiscal Years 2018-2022
Financial and compliance audit
of the City's financial statements
and related tasks, as described in $225.000 $230,000 $235,000 $245,000 $250,000
RFP #18-14102-MA
If you have any questions regarding this offer or the potential contract, please contact me directly at
any time.
Sincerely,
Jerry Gaither, CPA, CGFM
Partner, Assurance Services
972.448.6918
jerry.goitherdweaver.com
WEAVER AND TIDWELL, L.L.P. 12221 MERIT DPIVF SUITE 1400 DALLAS, TEY.AS 75251
CERTIFIEj PUBLIC ACCOUNTANT S AND ADVISORS P: 972 490.1970 F: 972.702,8321
a) The City's general purpose financial statements will be audited in accordance with generally
accepted auditing standards and Govermnent Auditing Standards issued by the Comptroller
General of the United States, the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). The auditor will express an opinion
concerning whether the general purpose financial statements present fairly, -in all material
respects, the financial position of the governmental activities, the business -type activities, the
aggregate discretely presented component units, each major fund and the aggregate remaining
fund information of the City of Lubbock, and the respective changes in financial position and,
where applicable, cash flows, for the year then ended in conformity with generally accepted
accounting principles.
b) In accordance with Government Auditing Standards, the auditor will consider the City's
internal control structure over financial reporting and assess control risk. It is recognized that
the management of the City is responsible for establishing and maintaining an internal control
structure.
c) Reports to be Issued
Following the completion of the audit of the fiscal year's financial statements, the auditor shall
file in the office of the City Secretary within 120 days after the last day of the City's fiscal
year:
— A report on the fair presentation of the financial statements in conformity with generally
accepted accounting principles.
— A report on the fair presentation of the stand alone financial statements of Lubbock Power
& Light, the City's electric utility fund.
— A report on the internal control over financial reporting and on compliance and other
matters based on an audit of financial statements performed in accordance with
Govenunent Auditing Standards.
— A report on compliance with requirements applicable to each major federal program and on
internal control over compliance in accordance with the Uniform Guidance and on the
Schedule of Expenditures of Federal Awards.
— A report on the internal control over financial reporting and on compliance and other
matters based on an audit of financial statements performed in accordance with
Government Auditing Standards and the State of Texas Uniform Grants Management
Standards.
— A report on compliance with requirements applicable to each major state program and on
internal control over compliance in accordance with Uniform Grants Management
Standards and on the Schedule of Expenditures of State Awards.
— A report on the Federal PFC and related Federal Requirements.
— A report to the Texas Commission on Environmental Quality pursuant to Subchapter C of
Title 30 Texas Administrative Code §37.271.
— A report on adherence to the City's investment policies as required by the Public Funds
Investment, Act Chapter 2256 of the Texas Government Code.
— The auditor shall communicate significant deficiencies and material weaknesses in writing
to management and those charged with governance in accordance with auditing standards.
— The reports on compliance shall include all material instances of noncompliance.
— Irregularities and illegal acts. Auditors shall be required to make an immediate written
report of all irregularities and illegal acts or indications of illegal acts of which they become
aware to the Chief Financial Officer and the Audit and Investment Committee.
d) Special Considerations
— The City will send its comprehensive annual financial report to the Government Finance
Officers Association of the United States and Canada (GFOA) for review in its Certificate
of Achievement for Excellence in Financial Reporting program. The auditor is required to
provide special assistance to the City to meet the requirements of that program.
— The City currently anticipates it will prepare one or more official statements in connection
with the sale of debt securities that will contain the general purpose financial statements
and the auditor's report thereon. The auditor may be asked to supply a confinnation letter
as to debt service coverages or necessary "comfort letters."
— The City may require the auditor's assistance to comply with new reporting requirements
mandated by the Government Accounting Standards Board (GASB).
— The audit will submit Form SF -SAC data collection form and a copy of the Uniform
Guidance, 2 CFR 200 reporting package to the Federal Audit Clearinghouse.
— The City may periodically amend the contract for a special engagement. An example of
this would be a franchise fee audit.
Exhibit B
Proposals and Price Proposal
ATTACHED
weaver
er
Assurance• Tax•Adwsary
May 25, 2018
Ms. Marta Alvarez
Director of Purchasing and Contract Management
City of Lubbock
1625 13" Street
Lubbock, Texas 79401
RE: Qualifications for Professional Auditing Services — RFP #18-14102-MA
Dear Ms. Alvarez and City leaders:
As the Hub of the South Plains, the City of Lubbock has an impact for beyond the city limits. Operations
like Lubbock Power & Light add complexity to your financial reporting requirements and demand an
auditor who has experience with other cites like yours.
Weaver and Tidwell, L.L.P., (Weaver) not only offers you that experience, but also a commitment to
open communication, responsive service and year-round assistance when you have questions. Our
dedicated municipal audit practice is recognized across Texas for our expertise and knowledge of the
financial reporting standards affecting cities of all sizes. Weaver offers you:
■ In-depth understanding of Texas law, politics and economics. Founded in Texas, Weaver has
served governments in this state for almost 70 years. We have a deep understanding of both
economic and regulatory environments in Texas.
■ Unmatched city auditing experience. Weaver currently serves as auditor for more than 175
public -sector clients, including 40 cities and towns — including 5 of the 15 largest Texas cities.
Through this work, we have grown familiar with the complexities of governmental accounting
and financial reporting as a whole, we also have hands-on experience with your specific
operations, systems, culture and reporting requirements.
■ Experience auditing municipal electric utilities. Our auditors have decades of experience
auditing cities with municipal electric utilities, such as Garland, Denton and Greenville, as well
as the Texas Municipal Power Agency. We currently audit both the City of Bryan and Bryan
Texas Utilities, and have since 2009. Weaver understands the unique transactions and financial
reporting required by cities providing electric utilities.
■ Commitment to ongoing communication. Frequent, effective and honest communication is
critical to a successful audit. Our partners and engagement team leadership remain highly
accessible throughout the engagement and throughout the year.
■ High -quality work and on -time delivery. Weaver's reputation has been built on the quality of
our work and our ability to stay on schedule and on budget.
Our goal is to provide you with more than just a financial audit; we want to offer the support you need
to maintain world -class financial operations.
WEAVER AND TIDWELL, L.L.P. 12221 MERIT DRIVE, SUITE 1400, DALLAS, TEXAS 75251
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS P: 972.490 1970 F: 972 702.8321
weaver�V
•
I hereby that I am an authorized agent of Weaver, able to answer technical, price and/or contract
questions and empowered to sign a contract with Lubbock. If you have any questions regarding this
proposal or any other matter, please do not hesitate to contact me directly at 972.448.6918 or via email
at jerry.gaither@weaver.com.
Sincerely,
1
Jerry Gaither, CPA, CGFM
Partner, Assurance Services
WEAVER AND TIDWELL, L.L.P. 12221 MERIT DRIVE, SUITE 1400, DALLAS, TEXAS 75251
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS P: 972.490.1970 F: 972.702.8321
7*11,
weaAssurance - Tax ver
Executive Summary
Decades of experience have given
Weaver's municipal auditors the ability to
see things others don't. Weaver clients
know they can rely on us for efficient, on -
time service and year-round assistance
with changing regulations or accounting
and auditing standards. They know we can
help them plan for change, master
complex requirements, achieve GFOA
recognition and bolster their citizens' trust.
With Weaver as your auditor, the City of
Lubbock can enjoy knowledgeable
auditors, reliable and personal service, on -
time completion and an efficient, effective
financial audit.
After decades of serving Texas cities, Weaver understands
Lubbock's complex operational structure and the nuances
of your municipal financial reporting needs. Leveraging this
deep, institutional knowledge enables us to focus more
immediately on your key areas of risk. The end result is not
only increased efficiency and cost-effectiveness in the
audit, but collaboration and training that help your finance
department operate at peak efficiency.
Understanding of Scope
With this proposal, Weaver offers to conduct an audit of
Lubbock's financial statements for the fiscal years ending
September 30, 2018 through 2022.
EXPERIENCE PERFORMING
MUNICIPAL AUDITS
With almost 70 years of experience,
Weaver has performed audits for
Texas cities of all types and sizes,
including four cities with municipal
electric utilities. Our current clients
include:
> 40 cities overall
> 14 of the top 50 cities in Texas
> Two of the cities closest to you
in size — Irving and Garland as well as Plano, which is the
size you're growing toward
> More than 175 governmental
agencies firmwide
> More than 50 agencies that
receive GFOA recognition
The annual audits will be performed in accordance with generally accepted auditing standards
(GAAS) as set forth by the American Institute of Certified Public Accountants (AICPA); standards for
financial audits set forth in the U.S. Governmental Accountability Office's Government Auditing
Standards (201 1); provisions of the Single Audit Act of 1996 and Title 2, U.S. Code of Federal
Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance); and the Texas Single Audit Act, as applicable.
Weaver will issue all reports currently required by these standards and federal and state grantors. We
will express opinions on the fair presentation of Lubbock's basic financial statements and an "in
relation to" opinion on the accompanying supplementary information for conformity with generally
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell, L.L.P. I Page 1
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accepted accounting principles generally accepted in the United States of America (GAAP). We will
perform specified procedures on the required supplementary information each year, as required by
the Governmental Accounting Standards Board (GASB).
At the completion of our audits, Weaver will issue:
■ A report on the fair presentation of the basic financial statements in accordance with GAAP
■ A report of the fair presentation of Lubbock Power & Light (LP&L) stand-alone financial
statements of the City's electric utility fund in accordance with GAAP
■ A report on internal control over financial reporting and on compliance and other matters
based on the audit of financial statements in accordance with generally accepted
government auditing standards (GAGAS)
No, Reports on compliance with requirements of each major federal and state program and
internal control over compliance in accordance with Uniform Guidance and the Texas
Uniform Grant Management Standards (UGMS) and on the schedule of expenditures of
federal and state awards
■ A report on the schedule of passenger facility charges (PFC) and on compliance with
federal requirements
■ A report for the Texas Commission on Environmental Quality pursuant to Subchapter C of Title
30, Texas Administrative Code (TAC) Section 37.271
■ A report on adherence to the City's investment policies as required by the Public Funds
Investment Act (PFIA)
► All required communications with those charged with governance in accordance with
GAAS
■ The SF -SAC data collection form and reporting package, which Weaver will submit to the
Federal Audit Clearinghouse
Weaver will review the draft Comprehensive Annual Financial Report (CAFR) prepared by the City for
its compliance with Government Finance Officers Association (GFOA) requirements for its Certificate
of Achievement for Excellence in Financial Reporting. Your team members who are also members of
the GFOA Special Review Committee will perform this review, leveraging their in-depth understanding
of GFOA expectations.
Finally, each year Weaver will provide support and training to help Lubbock comply with any new
GASB pronouncements. We will provide on -site, hands-on support to help your staff meet changing
requirements efficiently. In addition, City staff will be invited to attend — at no charge — Weaver's
annual day of continuing professional education (CPE) focused specifically on the needs of
government finance professionals.
City of Lubbock RFP n18-14102-MA
Weaver and Tidwell, L.L.P. I Page 2
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Assurance . Tax. Advisory
Experienced Audit Team
To provide Lubbock with experienced leadership and the best results, Weaver has selected a team of
experienced staff to lead this engagement. These are the audit leaders who will serve you:
Jerry Gaither, CPA, CGFM I Engagement Partner
Jerry Gaither will lead the audit, serving as your primary point of contact and ensuring the results
meet your expectations. One of the most respected government auditors in Texas, Jerry has 40 years
of experience auditing government entities. For 30 years, he led Weaver's public sector practice,
developing the firm's audit methodologies for auditing government entities, including cities, regional
governments and public school districts. Jerry is the longest serving member of the GFOA Special
Review Committee. He has served as engagement partner for numerous cities, including Garland,
Irving, Grand Prairie, Denton, McKinney and Frisco.
Sara Dempsey, CPA ) Technical Review Partner
Sara Dempsey, who leads Weaver's practice serving governmental and nonprofit entities, will provide
technical review for the audit. Sara has 15 years of public accounting experience, focused on
leading engagement teams performing financial statement audits and single audits for municipalities,
school districts and nonprofits. Sara serves on the Special Review Committee for the GFOA, and she is
very knowledgeable of that organization's CAFR requirements for its Certificate of Achievement
program. She also has a thorough understanding of the rules and regulations associated with
nonprofit and government accounting, auditing and single audits. Sara's municipal clients have
included Garland, Irving, Denton and Killeen, among others.
David Duree, CPA, CGMA ) Relationship Partner
The leader of government auditing services in our Midland office, David Duree will serve as
relationship partner during the audit. David has more than 37 years of experience in public
accounting and extensive experience providing audit and consulting services for government and
nonprofit entities, as well as companies in the energy, oilfield services, manufacturing, construction
and health care industries. During his career, David has held countless leadership positions within the
AICPA on the Auditing Standards Board, the National Association of State Boards of Accountancy
and the Texas State Board of Public Accountancy (TSBPA). He has led audits for the City of Odessa,
Midland County and Midland Independent School District (ISD), as just a few examples.
Brent Young, CPA I Audit Senior Manager
Lubbock's senior manager for the audit will be Brent Young. He has more than 17 years of experience
managing and performing audits for governmental entities, including municipalities, public school
districts, water authorities and councils of governments. He has extensive experience with single
audits and CAFR preparation, having managed engagements for clients with net positions ranging
from $1 1 million to $2.7 billion. Brent is also a member of the GFOA Special Review Committee. His
clients include the City of Grand Prairie, Mesquite ISD, Trinity River Authority and the Dallas County
Park Cities Municipal Utility District.
Brittany George, CISA, QSA I IT and Data Analytics Leader
Brittany will lead work related to IT risk evaluation and as needed, data analytics. She has more than
14 years of experience leading IT risk assessments and executing IT internal audit plans over
performance and capacity management, disaster recovery and data privacy. Her focus includes IT
audits, cybersecurity and data analytics. Brittany performs IT control reviews for numerous North Texas
audit clients, including the cities of Fort Worth and Garland.
City of Lubbock RFP t#18-14102-MA
Weaver and Tidwell, L.L.P. I Page 3
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Assurance • Tax • Advisory
Other Resources
In addition to these key audit leaders, Weaver offers the resources of approximately 650 employees
including professionals with deep experience in related services such as evaluating IT controls,
analyzing large data files to detect anomalies, providing risk management and internal audit
services, and performing forensic investigations.
Giving You More for Your Audit
We understand that you need more value from your annual financial audit than mere compliance.
As your auditors, Weaver will be in a position to help you prepare for changing conditions, streamline
processes and identify potential fraud or waste. These are just a few specific examples of ways
Weaver helps our clients receive extra value from their audits:
• Examining/auditing unusual or complex transactions throughout the year, at your request,
in order to increase your confidence in interim financial reporting
■ Assisting Lubbock in implementing new GASB standards or other pronouncements. We will
keep you informed of pending changes, suggest the most efficient ways to comply and
provide free continuing education for your staff
■ Recommending changes in financial reporting models, which can reduce unnecessary
financial statement presentations, and/or recommending revisions in the number of fund
presentations for financial reporting purposes
■ Using our advanced data analytics capabilities to detect duplicate payments to vendors
and overpayments to employees, enabling clients to recover funds
■ Helping to ensure Lubbock's CAFR meets requirements of the GFOA Certificate of
Achievement; your engagement partner, technical review partner and senior manager are
all members of the GFOA Special Review Committee and intimately familiar with the award
standards. In fact, Jerry Gaither is the longest -serving member of GFOA of Texas
■ Offering free continuing professional education specifically focused on the special
concerns of cities and other government agencies, such as regulatory updates and
information about emerging technology
"Weaver's audit leaders were great during our first year audit. The conversion to
a new auditing firm was done smoothly. The senior manager did an amazing job
at the council meeting presenting the CAFR and audit results to council
members, staff and audience."
—Weaver Municipal Audit Client
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell, L.L.P. I Page 4
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Assurance • Tax • Advisory
Mandatory Elements
l . 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]
The firm and proposed audit team members of Weaver are independent with respect to the City of
Lubbock and all of its component units, including direct and indirect financial interest and relationship of
the proposed audit team to employees and elected officials. Additionally, the firm meets the
independence standards of GAGAS.
The firm has not had a professional relationship with the City or any of its component units in the past five
years.
2. License to Practice in Texas
Weaver is licensed to practice accountancy in Texas. We are 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 41 a-1. Each assurance partner of the firm holds a certificate as a Certified Public
Accountant pursuant to that act.
The proposed assurance engagement partner and key
engagement resources (management level and above) are
also licensed by the Texas State Board of Public Accountancy
as Certified Public Accountants. Other key personnel with
different focus areas hold certifications appropriate to their
area, such Certified Fraud Examiner or Certified Information
Security Professional. Specific information about each team
member's certification and related continuing education is
provided in the attached resumes.
3. Required Timeframe
Texas State Board of Public Accountancy
7M oniu n hmi,.d to FroWca n T.w
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Finn License ID P04338 Expires: 513112018
Fan Control Number 0080720
Office License ID- V01783 Form No: 17065413
Weaver commits to complete the City's financial audit and submit the associated financial statements
and auditor's reports to the office of the Lubbock City Secretary within 120 days after the last day of the
City's fiscal year. With our large staff of experienced government auditors, from staff to partners, we can
quickly deploy additional resources to meet your schedule, if that becomes necessary.
We have received the City's tentative timelines for the audit and will plan our schedule accordingly (see
page 28).
City of Lubbock RFP ;#18-14102-MA
Weavei and Tidwell L.L.P. I Page 5
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Assurance • Tax • Advisory
4. Professional Education Program
Weaver's continuing professional education policy (CPE) requires that all staff comply with the continuing
professional education requirements of the PCAOB, AICPA, Texas State Board of Public Accountancy,
and other regulatory agencies. All professional staff receive at least 120 hours of continuing professional
education every three years, focused in their industries of concentration.
Under Government Auditing Standards, professionals working on government audits are required to
obtain 80 hours of CPE every two years, with at least 24 hours relating to the governmental audit
environment. Staff assigned to your engagement will comply with these requirements for professionals
who plan, conduct or report on government audit engagements.
Our public -sector professional education program includes both internal and external classes. Annually,
we provide 16 hours of CPE relating to the single audit as well as 16 hours of governmental accounting
and financial reporting to our entire public sector team. Internal training is supported by external classes,
workshops, seminars and conferences to meet the specific needs of our staff and clients.
With one of the largest and most respected governmental practices in the state,
Weaver professionals are well informed about the wide array of issues cities face.
Cify of Lubbock RFP #18-14102-MA
Weaver and Tidwe I. L.L.P. I Page
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Assurance. •Advisory
Technical Qualifications
5. Qualifications
Government Auditing Experience
Weaver has a dedicated practice focused on public -sector entities across the state of Texas. It is one of
the largest industry practices in the firm, with more than 120 professionals who participate in government
or nonprofit audits. We perform annual financial audits for more than 175 government agencies each
year, from cities to large urban school districts to state agencies.
Among our numerous public -sector audit clients are:
► 40 Texas cities
► 7 of the 25 largest cities in the state
► 24 of the 100 largest cities in Texas, by population
► Approximately 100 entities that receive federal funding sufficient for a single audit
► More than 50 entities that receive the GFOA award for excellence in financial reporting
We are experienced not only with annual financial audits, but federal and state single audits, CA FIR
preparation or review for GFOA recognition, grant compliance and third -party grant compliance audits.
In addition, we also provide public -sector clients with internal audits (both outsourced and co -sourced),
risk assessments, enterprise risk management consulting, business process improvement, IT audits, data
analytics and forensic accounting.
Our broad and sustained experience enables us to take a particularly thoughtful approach, balancing
your short-term reporting needs with your long-term objectives. We invest significant resources in this
practice area every year, both to improve our services internally and to provide education and outreach
to our government clients.
Auditing Cities of Comparable Size
Weaver is the auditor for 8 of the 25 largest cities in the state — cities with
populations from 150,000 to 850,000. In addition, we have served four other top 25
cities in previous years.
See page 18 for a representative list of Weaver municipal audit engagements.
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell, t.._.P. I Page 7
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Electric Utilities Experience
Weaver has experience auditing the Texas Municipal Power
Authority and all four of its member cities. We are currently the
auditor for the City of Bryan, Texas, and Bryan Texas Utilities, as
well as the City of Garland.
We served as auditors for the City of Denton and the City of
Greenville for 10 and 15 years, respectively.
GFOA Experience
Weaver is the auditor of more than 50 entities who have
received the GFOA certificate of achievement in each of the
past two years. We are experienced with the reporting
requirements of the GFOA and have the knowledge and
experience to assist with reporting under these requirements. In
fact, the early growth of our public sector practice was spurred
by our assistance to entities trying to receive the GFOA
certificate for the first time.
Experience and Expertise
Index
Experience and performance
on comparable
engagements:
pp. 7, 7, 18, 23
► Experience with GFOA: p. 8
► Personnel qualifications: p. 13
► Experience auditing federal or
state financial assistance: p. 9
► Experience with JD Edwards
and VMware computer
systems:
p. 32
Ten Weaver staff members — including your proposed engagement partner, technical review partner
and senior manager— currently serve on the Special Review Committee of the GFOA that evaluates
CAFRs for eligibility with Certificate of Achievement Program requirements.
] 50+ entities
currently receiving
the GFOA
Certificate of
Achievement Certificate
* Ten staff on the "t4chiivenzent
1--. ;
GFOA Special Finanud&far:ng
Review Committee
* Your engagement partner,
technical review partner and
senior manager are all members
of the Special Review Committee
In fact, proposed engagement partner Jerry Gaither is
the longest -tenure GFOA Special Review Committee
member in the state, having served for more Phan 35
years. Weaver also has more GFOA Special Review
Committee members than any other firm in the state.
Weaver's clients who regularly receive GFOA
recognition are indicated are marked on the client list
included in section 7 (see page 18).
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell L.L.P. I Page 8
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Assurance • Tax . Advisory A111:000b
Single Audit Experience
As a firm, we perform more than 100 single audits every year for our clients who receive significant federal
or state financial assistance. Your entire engagement team has years, even decades, of experience
performing single audits under both Uniform Guidance and Texas UGMS. All of Weaver's government
audit staff complete annual CPE that includes the latest single audit standards. (Our city clients requiring
a single audit are marked with asterisks in the list on page 18.)
Weaver has significant experience with most federal
and state funding sources, including the City's major
federal programs in the last two years: community
development block grants (CDBG), Airport
Improvement Program, Federal Transit Cluster, Clean
Water State Revolving Fund Cluster and Low -Income
Home Energy Assistance. We also have experience
with entities receiving more than $200 million in
federal awards.
Several years before new Uniform Guidance
requirements went into effect, Weaver began
teaching our clients about the pending changes and
helping them prepare for a smooth transition. We
coached more than 100 clients to full compliance
with the evolving rules, and we can help prepare you
for any future changes.
"We couldn't be happier with the
service we receive from Weaver.
Thank you!"
Weaver client, 2017 satisfaction survey
City of Lubbock RFP #18-14102-MA
Weavei and Tidwell. L L.P. ; Page 9
Largest independent
accounting firm based in the
Southwest
Providing quality
client service
since 1950
9 U.S. Texas
locations locations
Size and Structure of Firm
Weaver is a nationally recognized, Texas -based firm with
approximately 650 professionals and offices in seven
major Texas cities: Dallas, Fort Worth, Midland, Austin,
Conroe, Houston and San Antonio. This engagement will
be led from our Dallas office, which offers the full
spectrum of accounting services, from governmental
audits to fax to IT advisory services.
Location of Office Performing the Work
This engagement will be managed and staffed with
resources from our Dallas office, as well as local
resources. In addition, all of Weaver's professionals work
collaboratively across locations, so if engagement needs
dictate we are able to draw upon additional resources
and in-house subject matter advisors. With this leveraged
model, Weaver is able to offer you a customized team
that can adjust dynamically and quickly to meet your
needs throughout all stages of the audit season. It also
enables us to provide an efficient, effective audit with
added innovation, thought -leadership and insight.
Number and Nature of Full -Time and Part -Time Engagement Staff
Weaver takes a function -specific approach to engagement staffing: we focus on leveraging the right
resources at the right times, ensuring that teams are assigned based on the specific tasks required during
each of the audit phases, as well as the timing of those tasks.
The resources for this engagement have been chosen specifically for their broad understanding of
public -sector and audits, as well as their technical ability, experience and management skills.
Jerry Gaither, CPA, CGFM, who has 40 years of experience leading government audits, will be Lubbock
engagement partner. In this role, Jerry will be responsible for the overall management of the
engagement.
Partner Shawn Parker, CPA, will be responsible for technical review.
Additional team members will include:
■ Audit Senior Manager Brent Young, CPA (part-time)
■ Audit Senior Associate Bryant Sanchez, CPA (full-time)
► Three to five additional audit associates, as needed (full-time)
City of Lubbock RFP n18-14102-MA
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Assurance • tax • Advisory
Peer Review
Weaver has been a member of the AICPA Center for Audit Quality and the Government Audit Quality
Center (GAQC) since their inception. Membership in these organizations is voluntary and requires a
commitment to the highest standards of professional practice. The strength of Weaver's quality control
system for our accounting and auditing practice and our compliance with that system are independently
evaluated every three years through a peer review administered by the AICPA National Peer Review
Committee (NPRC).
Each peer review has included a
review of governmental audit
engagement, as mandated by
AICPA Peer Review standards and
GAQC requirements.
Weaver has received
unmodified reports on
every peer review to date.
Our latest peer review was
accepted by the NPRC in October
2016; Weaver received a pass
rating, the highest grade possible.
Disciplinary Action
No disciplinary action has ever
been alleged and no action is
pending or has ever been
undertaken against the firm related
to our work for any public sector
(government) clients.
Litigation
Weaver is not involved in any open
litigation involving the government
practice.
EideBailly.
Svsleni Itnicrr Report
To the Panora or Weaver and TidivelL 1-1_P
and the Voti.iwl Peer Rcvnav Cnr[Intitro
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umrormila sulh applicable prol'asional standards in all material respect% Our rapurutbdin a to express an
opimon on the daip of the syslcm arynully control and Ilic fum's compliance thmoah based on ma M%W%.
The nature, nhjeeuva, scope, limitations of, and ue prardurn performed in a Svstan R"i •u an: dcsrnbed in
the standards at nn�r�n ��+
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1. 1 1' applicable to cngagerricnts not whjat to PC.WH pcnnancnt inapccthm in effect for the yea ended blab
31, 2016. has been sunah1v designed aril complied with to pmvidc the fum with reasonable assurance of
performing and reponmg in nmf umnv as ith applicable pirtreasfuml standards in all material respects. rums can
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City of Lubbock RFP #18-14102-MA
Weaver and Tidwell, L.L.P. , Page 1 I
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6. Partner, Supervisor and Staff Qualifications and
Experience
The proposed staff for this engagement bring the City an unmatched depth of experience and
knowledge in municipal financial audits. Partner Jerry Gaither, CPA, CGFM, has hand-picked this staff to
work with him for their skill, understanding of municipal audits and skill in working with client staff and
elected leaders.
City of Lubbock
Engagement Team Organization
- Partner,•
1-ith
upplements the engagement team Leads the financial audit, from
local knowledge and resources planning and risk assessment to
s needed presentation of the final report
Brittany George, CISA, QSA Brent Young, CPA
IT Advisory Services
• and D• • Analytics Advisor
Oversees and advises audit team on Manages day-to-day work; assists in
IT controls evaluation, data onalytics planning; answers technical
and related issues I questions; reviews work papers;
keeps audit on time and on budget
Leads on -site audit procedures,
supervising less experienced staff
and ensuring the engagement
stays on schedule
Reviews audit deliverables to ensure
compliance with standards; provides
technical consultation as needed
City of Lubbock RFP #18-14102-MA
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Assurance • Tax • Advisory
Team Leadership
Jerry L. Gaither, CPA, CGFM I Engagement Partner
�4 Jerry has 40 years of experience leading engagement teams in financial audits for
r the most complex government entities. For 30 years, he led Weaver's public sector
assurance practice, where he was responsible for refining audit methodologies,
maintaining high -quality services and overseeing engagements for more than 150
government audit clients. Jerry developed Weaver's government audit
methodologies used for cities, regional governments and public school districts,
including the methodology for single audits meeting Uniform Guidance requirements.
Jerry is an associate member of the Government Finance Officers Association and
also serves on the Special Review Committee. He is a Certified Government Finance
Manager (CGFM) and a former member of the Technical Issues Committee of the
AICPA as liaison to the Governmental Accounting Standards Board. Jerry is also a
member of the TSCPA. With his years of experience serving government entities and
involvement in standard setting bodies, Jerry's clients have access to important
industry insights, often before major changes happen. He graduated with a Bachelor
of Business Administration in accounting from Texas Christian University.
Sara Dempsey, CPA I Technical Review Partner
Sara, who leads Weaver's firmwide government audit practice, will serve as a
# technical reviewer, providin
g g quality assurance for the audit. She has 15 years of
public accounting experience. She focuses on leading engagement teams
performing financial statement audits and single audits for municipalities, school
districts and nonprofits. Sara serves on the Special Review Committee for the GFOA,
and she is very knowledgeable of that organization's CAFR requirements for its
Certificate of Achievement program. She also has a thorough understanding of the
rules and regulations associated with nonprofit and government accounting,
auditing and single audits.
Sara is also an active local member of the AICPA and the TSCPA, as well as the
GFOA. She graduated with a bachelor's degree in accounting from Texas State
University.
Regardless of the time of year, your Weaver partners and senior manager are
accessible and available to answer questions and provide advice fo Lubbock
personnel and leaders. We encourage you to call us whenever you have questions.
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell. L.L.P. - Paae 13
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Assurance • Tax • Advisory
David Duree, CPA, CGMA I Relationship Partner
David has more than 37 years of experience in public accounting and currently,
leads Weaver's government audit practice in Midland. He will serve as a nearby
resource for the team, lending his network and familiarity with West Texas and High
1 Plains issues. With extensive experience providing audit and consulting services for
government and nonprofit entities as well as companies in the energy, oilfield
services, manufacturing, construction and health care industries, David brings diverse
knowledge and technical skills to each of his clients.
Having held countless leadership positions within the AICPA on the Auditing
Standards Board, the National Association of State Boards of Accountancy and the
TSBPA, David remains on the forefront of industry and regulation changes. He is
certified not only as a CPA but also as a Chartered Global Management
Accountant. He graduated with a Bachelor of Business Administration degree in
accounting from the University of Texas of the Permian Basin.
Brent Young, CPA I Audit Senior Manager
Brent will serve as audit senior manager for Lubbock, leading day-to-day work and
overseeing audit staff. He will ensure regular communication with management on
the status of the audit and provide technical assistance relating to accounting issues.
Brent has more than 17 years of experience managing and performing audits for
governmental entities including municipalities, public schooldistricts, water
authorities and councils of governments. He has extensive experience with single
audits and CAFR preparation, having managed engagements for clients with net
positions ranging from $l 1 million to $2.7 billion.
Brent is also a member of the GFOA Special Review Committee, which gives him
intimate familiarity with GFOA standards for awarding the Certificate of Achievement
for Excellence in Financial Reporting. He is an active member of the AICPA and
TSCPA and of the Association of Water Board Directors. He earned both bachelor's
and master's degrees from the University of Texas at Dallas.
Bryant Sanchez, CPA I Audit Senior Associate
Bryant has four years of experience in public accounting for local governments,
nonprofits and private companies. He focuses of leading financial audits for school
districts, colleges, cities and water districts, following Government Auditing Standards
and both state and federal single audit requirements. As an audit senior associate,
Bryant is responsible for directing the work of staff auditors during fieldwork, reviewing
work papers, and assuring that financial statements include the proper reporting and
disclosures. Bryant is a member of the AICPA and TSCPA. He earned a Bachelor of
Business Administration as well as a master's degree in accounting from Texas Tech
University.
City of Lubbock RFP n18-14102-MA
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Assurance • Tax • Advisory
Brittany George, CISA, QSA I Senior Manager, IT Advisory Services
and Data Analytics Advisor
Brittany will lead work related to the IT controls evaluation and data analytics, as
needed. She has more than 14 years of IT advisory experience, including more than
two years of experience in KPMG's Information Technology Advisory practice and
more than two years with TXU/Capgemini Energy. Her practice emphasis includes
SOC reporting, payment card industry (PCI) security, IT audit, security and consulting
services. She is also highly experienced with Sarbanes-Oxley attestations and
compliance audits. Brittany has managed some of Weaver's most significant IT
controls engagements, with a heavy focus on information security.
A Certified Information Systems Auditor (CISA) and Qualified Security Assessor (QSA),
Brittany is president of the North Texas chapter of ISACA. She is also a member of IIA,
AFCOM and the Tech Titans, where she is involved on the Cybersecurity and Cloud
Computing Forums. She earned a Bachelor of Business Administration degree in
management informaton systems from the University of Oklahoma.
Other Staff Support
In addition to these key audit leaders, Weaver offers the resources of approximately 650 employees,
;ncluding professionals with deep experience in related services such as evaluating IT controls, analyzing
large data files to detect anomalies, providing risk management and internal audit services, and
performing forensic investigations.
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell, L.L.P. Page 15
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Assurance • Tox • Advisory
Continuing Education
Weaver's continuing professional education policy requires that all staff comply with the continuing
professional education requirements of the PCAOB, AICPA, Texas State Board of Public Accountancy,
and other regulatory agencies. All professional staff receive at least 120 hours of continuing professional
education every three years, focused in their industries of concentration.
Under Government Auditing Standards, professionals working on government audits are required to
obtain 80 hours of CPE every two years, with at least 24 hours relating to the governmental audit
environment. Staff assigned to your engagement will comply with these requirements for professionals
who plan, conduct or report on government audit engagements.
Continuing professional education credit hours for key personnel are summarized below:
Jerry Gaither, CPA, CGFM 89.0 112.0
Sara Dempsey, CPA
72.0 117.6
David Duree, CPA 59.0 1 141.0
Brent Young, CPA i 100.00 I 127.5
Bryant Sanchez, CPA
39.0 ! 96.0
The complete resumes in Appendix A include details of CPE courses your proposed audit leaders have
taken in the last two years.
City of Lubbock RFP n18-14102-MA
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Auditing Staff Assignments
We understand how frustrating it is to get an auditor up to speed only to learn that that particular team
member will be rotated off of the engagement. Rotot'on happens frequently in many firms, creating
broken and segmented teams, which results in a loss of important intrinsic knowledge.
Although no firm is immune to the factors that lead to rotation, Weaver makes engagement team
continuity a client service priorty. We established a formal policy years ago that states that continuity in
engagement leadership should be maintained throughout a client relationship unless client interests
indicate otherwise.
We understand the time commitment involved in an audit of this size. By deploying sophisticated
scheduling software, our partners can assign staff with adequate capacity to do the best job for
Lubbock, as we do for each of our clients.
Retention and Turnover
.:• �60
5�
Our people are the foundation of our business and at the core of
everything we do. The quality of our staff directly translates to the
quality of work for clients; for this reason, among others, we take
employee retention very seriously.
ir
�r Competition for talent and other varying market and industry forces
•• + is a constant pressure in the accounting industry. We always look for
ways to not just reduce turnover, but also retain our most talented
professionals. As an example, we recently implemented a fast -track
program for high performers; we also encourage staff to develop their careers on an industry -focused
track, and provide related industry and technical training so they can quickly meet their professional
goals. We continually seek ways to reward and retain our best and brightest staff.
City Approval
Weaver will discuss with the City in advance any proposed changes to the engagement team
leadership. We will provide the resume of the proposed professional and obtain your approval before
making the change.
City of Lubbock RFP #18-14102-MA
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• di
7. Knowledge of Full -Service Municipal corporations
Weaver audits more than twice as many top-50 cities as the next auditor — 14 of the top 50 and 40 cities
in all. We audit cities with economic development corporations, landfills, electric utilities, professional
sports stadiums, airports and even charter schools and horse racetracks.
The list below summarizes key details about selected municipal audits performed in the last five years; the
list includes clients served by the office and/or partners proposed to lead Lubbock's audit. Recipients of
GFOA recognition are noted in the "Scope" column.
Similar Municipal Audits in the Past Five Years
City of Fort Kevin Sanford
Worth (Fort Worth)
City of Plano Sara Dempsey
(Dallas)
Anthony Rousseau
201 6- Assistant Finance
present Director
817.392.8333
Financial and
compliance audits;
multiple component
units; GFOA recognition
5000
Financial and
2017- Allison Friloux compliance audit;
present Controller multiple component 900
1972.941.5225 units; TCEQ compliance;
GFOA recognition
City of Garland I Sara Dempsey I 2014-
(w/ electric I (Dallas) present
utility)
City of Irving
City of Grand
Prairie
Sara Dempsey 2015-
(Dallas) present
Jerry Gaither
(Dallas)
City of McKinney Jerry Gaither
(Dallas)
Financial and
Matt Watson
compliance audit;
Finance Director
multiple component 1400
972.205.2355
units; TCEQ compliance;
GFOA recognition
Annual financial audit,
including federal and
Jeff Litchfield
state single audits, TCEQ
Director, Financial
compliance letters, and 1000
Services
revenue bond coverage
972.721.2733
calculation; various AUP
engagements;
GFOA recoanition
Annual financial and
Diana Ortiz
I compliance audits; TCEQ
I compliance letters, HUD
2006-
Chief Financial
� program, Sports 1200
present
Officer
Development
972.237.8090
GFOA
I
recognition.
Trudy Mathis 1
Annual financial and
2006-
Director of Finance
compliance audits, 800
2014
972.547.7528
including single audit
and GFOA recognition
City of Lubbock RFP n18-14102-MA
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Assurance • Tax. Advisory
City of Frisco
Jerry Gaither
2015-
HniTa � omran
Director of Financial
i Auditor from 2006-2010
and again starting in
700
(Dallas)
present
Services
972.292.5510
2015; GFOA recognition
City of Denton
Bryan Langley
Annual financial and
(w/ electric
Jerry Gaither
2008-
I Assistant City
compliance audits since
utility)
(Dallas)
2015
Manager
2008 including the City's
HUD
900
940.349.8288
program; GFOA
recognition
I i
Adam
Mc
2011-
Jonathan Locke
Annual financial and
City of Killeen
Jerry Gaither
I present
Director of Finance
254.501. 7730
ICane,
compliance
P iance audits;
PFC compliance;
750
Austin, Dallas
( )
I
I GFOA recognition I
City of Odessa
David Duree
(Midland)
2000-
present
j Terri Gayhort
Director of Finance
Financial and
compliance audits:
600
432.335.3219
GFOA recognition
City of Lewisville
John DeBurro
2013-
Brenda Martin
Chief Financial
Financial and
(Dallas) )
present
I Officer
compliance audits,
GFOA recognition
650I
^ �_
1972.219.3775
�
Eric Cannon
Annual financial and
I
City of Allen
Sara Dempsey
2006-
Chief Financial
compliance audits,
( Dallas0
present
Officer
including Arts Center of
550
214.509.4627
North Texas, Inc.: GFOA
recognition
Financial and
compliance audits; audit
City of Bryan,
j
of Bryan Texas Utilities;
Bryan Texas
I Laura Lambert
2009-
William Smith
I Director of Finance
audits of Bryan Texas
Utilities (municipally
Utilities
(electric
I (Houston)
I
present
� 979.209.5089 I
owned electric utility with
750
utility)
i I
generation facilities,
single audits and CAFR
preparation); GFOA
I
i
recognition
I
I -
Adam
I Laurie Brewer
Annual financial and
City of
Georgetown
g
McCane
2014-
present
I Assistant City
Manager
compliance audit;
separate audit of airport;
500
(Austin)
512.930.2507
GFOA recognition
Brian Funderburk
City of Rowlett
Sara Dempsey
2016-
Assistant Cit y
Financial and
(Dallas)
present
Manager/CFO
compliance audits:
500
T
I
972.412.6290
GFOA recognition
City of Lubbock RFP n18-14102-MA
Weaver and Tidwell, L.L.P. I Page 19
weaver•
City of Euless
Sara Dempsey
2015-
I Janina Jewell
Financial and
(Dallas)
present
Finance Director
compliance audits;
550
817.685.1444
GFOA recognition
Jackie
Clifford Blackwell
City of Bedford
Gonzalez
2017-
Assistant City
Financial and
500
(Fort Worth)
i present
Manager
j
compliance audits
817.952.2174
Melissa Beard
City of Wylie
John DeBurro
2007-
Chief Financial
Financial and
(Dallas)
present
Officer
compliance audits;
400
972.442.8141
GFOA recognition
City of Coppell
John DeBurro
Dallas
(Dallas)
2016-
present
Jennifer Miller
I Director of Finance
Financial and
compliance audits;
400
i
972.304.369
GFOA recognition
I
Tia Pettis
I I
City of
Sara Dempsey
2017-
j Assistant Finance
Financial and
Duncanville
(Dallas)
Dallas
present
I Director
compliance audits;
4CC
972.780.5005
GFOA recognition
Sharen Jackson
Annual financial and
City of Southlake
John DeBurro
1997-
Chief Financial
compliance audits.; AUP
Dallas
(Dallas)
present
Officer
I for Southlake Tennis
600
817.748.8042
Center; GFOA`
recognition
Steven Ventura
Town of Fairview
John DeBurro 1
2014-
I Chief Financial
Financial and
Dallas
( )
present
I Officer
compliance audits;
300I
972.562.0522
GFOA recognition
City of Lubbock RFP r#18-14102-MA
Weaver and Tidwell. L.L.P. I Page 20
l!:100�-
weaver
Assurance • Tax. Advisory All
Sample "Provided by Client" List
Weaver will strive to use the schedules and reports our clients already prepare, in order to reduce the
burden on Lubbock staff. The list of schedules below is preliminary; we will work with you at the initial
planning meeting to refine the requests and establish the timeline.
• Preliminary SEFA
• Control Questionnaires
• SSAE 16 Reports
• Arbitrage Calculation (if applicable)
• OPEB Actuary Report
• Risk Actuary
■ Health Actuary
■ Fire Actuary
■ Citibus Trial Balance
■ WTMPA Trial Balance
■ WTMPA Draft Statements
■ Citibus Draft Statements
■ Civic Lubbock, Inc. Draft Financials
■ LEDA Draft Financials
■ Market Lubbock, Inc. Draft Financials
Annual �CAR Sample CAFR
for ffm faca1 Vow ai 3aplanim 30. 2017
g,v, For a sample of Weaver's work, please refer to the City of Garland's
r 1re n- �9, � CAFR, which is posted here:
�jak[ifa - 'Tim
http:lfwww. i, arand.tx.us ov e finance com finonre ort.as
City of Lubbock RFP n18-14102-MA
Weaver and Tidwell, L.L.P. I Page 21
► eavel
Assurance • Tax • Advisory
Representative Government and Publicly Funded Clients
Municipalities
City of Allen*/+
City of Arlington#
City of Bedford*
City of Benbrook*
(tZit—V of Bryan* +
i y eve an F
City of Coldspring
City of Colleyville*/+
City of Conroe'/+
City of Coppell+
City of Copperas Cove*/+
City of Corpus Christi#
City of Duncanville
City of Euless*/+
City of Fort Worth*/+
Cri'I
ofarlondeorg wn*/+/#
City of Grand Prairie*/+
City of Houston#
City of Irving*/+
City of Jasper*/+
City of Keene
City of Keller+
City of Killeen*/+
City of League City*/+
City of Lewisville*/+
City of Odessa*/+
City of Plano*/+
City of Rowlett+
City of Saginaw*
City of Southloke#/+
City of Springtown*
City of the Colony+
City of Willis
City of Woodbranch
City of Worthom
City of Wylie/+
Town of Fairview+
Town of Little Elm*/+
Town of Pecos City
Town of Westlake+
State Entities
Cancer Prevention and Research
Institute of Texas#
Employee Retirement System of
Texas#
Texas Board of Law Examiners
Texas Council for Developmental
Disabilities#
Texas Department of State Health
Services#
Texas Department of Information
Resources#
Texas Department of Insurance#
Texas Department of Licensing
and Regulation#
Texas General Land Office
Texas Higher Education
Coordinating Board#
Texas Lottery Commission
Texas Municipal Retirement
System#
Texas Permanent School Fund
Texas State Auditors Office#
Texas Windstorm Insurance
Assoc.#
Local & Regional Entities
Alliance Airport Authority
Bexar County Auditor's Office
Brushy Creek Regional Utility
District
Bryan Texas Utilities#
Central Texas Council of
Governments•/+
Coastal Water Authority
Dallas County Park Cities
Municipal Utility District
Denton County Transit
Authority*/+/#
East Texas Council of
Governments'/+/#
Ector County Appraisal District
Ector County Hospital District#
Guadalupe County*/+/ #
Houston -Galveston Council of
Governments#
Metrocare Services#
Midland County'
Montgomery Central Appraisal
District
Montgomery County*/+
Montgomery County Hospital
District
North Central Texas Council of
Governments*/#/+
North Texas Municipal Water
District#/+
North Texas Tollway Authority#
Odessa Development
Corporation
Parker County*, CSCD, TJJD
Pecos County
Reeves County
Tarrant Appraisal District
Tarrant County#
Tarrant County Emergency
Services District No. 10
Tarrant County Tax Office#
Texas Coalition for Affordable
Power
Tomball Hospital Authority
Trinity River Authority+
Williamson County */+
Educational Entities
Alamo Community Colleges#
Alvin ISD*
America Can! Academy
Austin Community College#
Birdville ISD*/+
Bryan ISD*
College Station ISD*
Compass Academy Charter
School
Conroe ISD*/+
Crowley ISD
Cypress -Fairbanks ISD*/+/#
Dallas ISD*/+/#
Del Mar College#
Duncanville ISD*
Eanes ISD*
Fort Worth ISD*/+/#
Frisco ISD*/+/#
Grand Prairie ISD*/+
Highland Park ISD*/+
Houston ISD'/+
Hurst -Euless -Bedford ISD*/+
Irving ISD*/+/#
La Porte ISD*/+
Lee College#
Lone Star College#
McKinney ISD#
Mesquite ISD*
Midland ISD*
Midwestern State University
Montgomery ISD */+
Pasadena ISD*/+
Pflugerville ISD*/+
Plano ISD'/+
Region 4 Education Service
Center (ESC)*/+
Region 5 ESC*
Region 6 ESC*
Region 11 ESC/#
Region 13 ESC*/+
Rockwall ISD*
Tarrant County Col-eae
District'/+/#
Texas A&M University#
Texas City ISD•
Texas Leadership Charter
Academy (charter)
Tomball ISD*/+
University of Texas System'
Uplift Education* (charter)
Waco ISD*/#
Westlake Academy (charter)
Wichita Falls ISD*
* Single Audits
+ Recipient of GFOA Award for Excellence in Financial Reporting
# Internal Control and/or IT Audit
City of Lubbock RFP Vale-14102-MA
Weaver and Tidwell, L.L.P. I Page 22
weaver r --
Assuwnm tax Ad.aory
8. Similar Engagements with Government Entities
Cities across Texas trust Weaver with their most complex financial audits, particularly those involving
utilities, landfills, and component units. Among our municipal clients, these are the ones most similar to
Lubbock.
City of
Fort
Worth
Aaron J. Bovos, CGFM, CTP
Chief Financial Officer
817.392.8500
aaron.bovos@
fortworthtexas.gov
Annual financial and
compliance audits over
city and its component
units, including single
audits
Kevin
Sanford
5,000
I
2016-
present
City of
Allison Friloux
Financial and compliance
audit; multiple component
Sara
2017-
Plano
Controller
I 972.941.5225
units; TCEQ compliance;
Dempsey
900
present
I
GFOA recognition
Matt Watson
Annual financial and
Sara
City of
Finance Director
compliance audits over
Dempsey,
2014-
Garland
972-205-2355
city and its component
Jerry
i �r,r,
present
mwatson@GarlandTx.gov
unitsle sin including
g g
Gaither
audits and electric utility
I
Annual financial audit,
Jeff Litchfield I
including federal and state
City of
Director, Financial Services
single audits, TCEQ
Sara
2015-
Irving
972.721.2733
compliance letters, and
Dempsey
750
present
jitchfield@cityofirving.org
revenue bond coverage
calculation
Annual financial and
Diana Ortiz
compliance audits,
�
City of
Grand
Chief Financial Officer
including TCEQ
compliance letters and
Jerry
900
2006-
Prairie
972.237.8099
audits of Grand Prairie
Gaither
present
dortiz@gptx.org
Sports Development
Corporation
Anita Cothran
Annual financial and
City of
i Director of Financial j
compliance audits over
Jerry
2015-
Frisco
Services
city and its component
Gaither
resen t
present
972.292.5510 1
units, including single
acothran@friscotexas.gov
audits
City of
Terri Goyhart
I
Director of Finance
Financial and compliance
David
500
2000-
Odessa
432.335.3219
audits; GFOA recognition
Duree
present
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell, L.L.P. I Page 23
we ayse r
,��
Assurance - 7ax - Advisory dW
9. Equal Opportunity
Weaver is an equal -opportunity employer. In accordance with federal, state and local laws, we recruit,
hire, promote and evaluate all personnel without regard to race, color, religion, sex, age, national origin,
citizenship status, physical or mental disability, or past, present, or future status in the uniformed services of
the United States. Job applicants and present employees are evaluated solely on ability, experience, and
the requirements of the job.
Each employee is responsible for helping Weaver maintain a climate that provides equal opportunity for
all.
The objective of Weaver is to recruit, hire, promote and retain individuals who are the best qualified for
each specific position based solely on job -related criteria of education, training accomplished,
experience and personal qualifications. Any individual within the firm who has responsibility or input to
personnel decisions is responsible for compliance with this policy.
Local Resources
Weaver has secured the agreement of a Lubbock CPA to provide local support and help us utilize local
resources effectively:
David Boring, CPA, PC
Lubbock, Texas
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell, L.L.P. I Page 24
weaver
Aftw•Yat•Adv,rcry
10. Specific Audit Approach
Scope
Weaver will conduct an annual financial audit of Lubbock's basic financial statements for the fiscal years
ending September 30, 2018 through 2022.. The audits will be performed in accordance with GAAS as set
forth by the AICPA; U.S. Government Accountability Office's Government Auditing Standards; and
provisions of the Single Audit Act of 1996, Uniform Guidance and the State of Texas UGMS, as applicable.
Based on the results of the audit, Weaver will express opinions on the fair presentation of Lubbock's basic
financial statements and an "in relation to" opinion on the accompanying supplementary information for
conformity with GAAP. We will perform specified procedures on the required supplementary information
each year. Weaver will also report on the Lubbock's internal control over financial reporting and on its
compliance with certain provisions of laws. regulations, contracts and grant agreements and other
matters for the year being audited, in accordance with GAGAS.
CAFR Preparation
Weaver has developed an automated financial statement presentation model that integrates with our
audit software, greatly enhancing the efficiency of statement preparation. By using this software,
combined with procedures designed to ensure that the City reviews and accepts responsibility for the
statements, Weaver is able to produce statements from the City's data while maintaining our
independence.
Reporting
At the conclusion of the audit, Weaver will issue 20 printed copies and one PDF file of the completed
CAFR and the following reports:
► A report on the fair presentation of the financial statements in conformity with GAAP, including
an opinion on the fair presentation of supplementary information
0 A report on the fair presentation of the stand-alone financial statements of LP8,L
r A report on compliance and internal control structure over financial reporting based on the
audit of financial statements performed in accordance with GAGAS
► A report on compliance and internal control over compliance applicable to each major federal
and state program performed in accordance with Uniform Guidance and UGMS, as required, as
well as a report on supplemental information on the schedule of federal and state awards
► A report on the federal Passenger Facility Charge (PFC) and related federal compliance
requirements
► A report to the Texas Commission on Environmental Quality (TCEQ) under Subchapter C, Title 30
TAC 37.271
■ A report on the City's compliance with investment policies, in accordance with the Public Funds
Investment Act (PFIA)
► A management letter describing any deficiencies, focused on practical suggestions for
improvement
■ A letter to the audit committee, including required communications to governance
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell, L.L.P. I Page 25
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Asiuwn -lr.. Advisory
Weaver will communicate regularly with Lubbock management and elected leaders, as appropriate,
regarding our progress and findings. We will make an immediate written report of any irregularities or
illegal acts — or indications of illegal acts — that we become aware of.
Working with Weaver
Protecting Your Information
Weaver continuously manages confidential personal and financial data. We
are always mindful of the trust and responsibility our clients place on us;
therefore, we have created a comprehensive array of procedures and
industry -standard security systems to protect client and firm information.
In addition to a secure client portal and encrypted e-mail, Weaver requires
encryption of client data outside the office. All laptop and desktop hard drives are encrypted using two -
factor authentication, and removable media (such as thumb drives) are all encrypted as well. We also
use physical security such as workstations that lock automatically and secured doors in all our offices.
Printed documents are kept in secured areas, and unneeded documents are collected in locked
containers for shredding. These are just examples of the exhaustive procedures we follow to make sure
your data remain secure.
Weaver's industry -leading data safeguards — such as two -factor authentication —
exceed State of Texas requirements for protecting information managed by state
agencies.
Communication
To keep work on track, we hold regular internal meetings to address issues as they arise, including any
foreseeable delays or changes to the original schedule. Our team leaders will also meet with you
regularly to inform you of our progress, ask questions we may have and alert you to any potential delays.
When we finish interim fieldwork and again at the
end of final fieldwork, our team will meet with you
to discuss our observations and recommendations
relating to internal control, compliance and
operational improvements. We will also confirm
facts with you before including them in our
reports.
At the conclusion of the engagement we will
provide detailed written reports and present them
to management and interested parties as
requested. (See Phase 5 for details of Weaver's
audit presentations. j
Continuous
Communication
City of Lubbock RFP ;#18-14102-MA
Weaver and Tidwell L.L.P. I Page 26
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Assurance - T¢x . Ad—ory
Regular Meetings
Timeliness and continuous communication is critical to our service approach; these points are important
for you to receive audit results and deliverables in the timeframe you expect. We will meet with you on a
regular basis to:
► Facilitate a constructive exchange about work in progress and related issues
► Provide technical updates and discuss how they affect the organization
■ Learn about changes in your forward -looking strategies as we look to the next season
■ Gain an understanding of your overall satisfaction to date
Interim and Fieldwork "Prepared by Client" (PBC) Requests
We recognize that Lubbock's staff manages finances of a multimillion -dollar enterprise; our objective is to
allocate to you only those tasks that will result in the greatest cost -efficiency overall. For any and all
requests for information, we will give Lubbock adequate lead time for their preparation. We will deliver a
request list for our interim fieldwork no later than four weeks in advance of the scheduled arrival for interim
fieldwork. When we conclude our interim fieldwork in your office, we will deliver a tailored list of schedules
for final fieldwork based on our understanding of controls and operations developed during the interim
fieldwork. We will provide the final PBC list by August 30.
Work Paper Retention
All work papers and reports will be retained, at our expense, for a minimum of five years. We will make the
work papers available, upon request, to the parties indicated in the RFP or to their designees.
City of Lubbock RFP;#18-14102-MA
Weaver and Tidwell, L.L.P. I Page 27
weavr e
Assu mn 71a. • Advisory
Audit Overview
An overview offhe key segments of our methodology is provided below. Weaver is committed to
meeting Lubbock's timelines and engagement objectives; we take our commitment to you seriously and
will work diligently with you to meet or exceed the scheduled deadlines. We will schedule our fieldwork to
minimize disruption to the ongoing finance operations while adhering to your deadlines and participating
in conferences as requested.
Phase 1: Phase 3: Phase 4: Phase 5:
Planning & Risk Final Fieldwork Financial Review & Reporting
Assessment Quality Control
Purpose:
Purpose:
Understand your
Review internal
priorities, plan an
controls, determine
efficient audit,
compliance for
establish
major programs,
milestones and
identify risks
deadlines
Timing:
Upon award
Staffing:
Partner, Senior
Manager,
Senior Associate
Hours:
150
Timing:
Sept 10-21
Staffing:
Partner, Senior
Manager,
Senior Associate,
Associates
Hours:
400
Purpose:
Prepare work
papers, perform
substantive
testing and data
analysis
Timing:
Nov 26-
Dec 14
Staffing:
Partner. Senior
Manager,
Senior Associate.
Associates
Purpose:
Perform final
reviews, confirm
conclusions,
perform QC,
discuss preliminary
results with
management
r— -_
1 Timing:
December
Staffing:
Partner, Senior
Manager,
Senior Associate,
Associates
Hours:
883
Purpose:
Prepare final
reports and
management
letters; deliver
reports and
present to
stakeholders
Timing:
January
Presentation to
Council in
February
Staffing:
Partner, Senior
Manager,
Senior Associate
Hours:
I
100
City of Lubbock RFP #18-14102-MA
Weaver ai id T:dwe I L.L.P. I Page 28
weaver
Phase 1: Engagement Planning and Risk Assessment
• During the planning phase, we will meet with you to understand your operations
i Risk Assessment and processes, find out your preferences, ask for the reports and data we will
need, and set milestones and deadlines. We will also complete a work plan for
the engagement, review prior -year financial statements for any changes to
presentation requirements, identify potential risks and calculate a preliminary estimate of materiality.
As we flesh out our detailed audit approach, we will ensure that audit tests are efficient, not repetitive.
We will also modify the audit program as needed to reflect changes in conditions or audit standards,
unexpected results from tests of operating effectiveness of internal controls, new information or
unanticipated activities.
When learning about your operations, we will consider aspects that could affect our audit scope and
approach, such as your organizational structure; governing laws and regulations; the annual budget,
including sources of revenue; number of employees; special programs such as federal grants or pilot
programs; types of funds; your IT arrangements, whether in-house or outsourced; and any significant
events during the past year that might have affected your financial processes or political environment.
Understanding Municipal Operations
We will begin by understanding the City's business and consider aspects that could affect the scope and
approach of the audit, such as:
■ The total fiscal year budget
■ The types of funds
• The total number of employees and the organizational structure
• The number and size of blended and discretely presented component units
■ Services provided by the City, particularly programs administered with state or federal funding
■ Factors affecting the financial condition (e.g., growth), change in the fax base, or state and
federal budget constraints
■ The City's IT arrangements
• Significant internal or external events, such as
changes in management or key accounting
personnel, policies and procedures, long-term debt,
capital assets, legal requirements, economic
conditions and/or political environment
• Accounting problems or issues
■ Reporting or disclosure issues
In addition, we will determine whether all potential
component units are properly included and reported in the
City's financial statements. The reporting entity is defined in
GASB Statement No. 14 as amended by GASB 39 and GASB
61 to consist of the primary government (City) and any
component units.
City of Lubbock RFP #18-14102-MA
Weaver and Tidwell, L.L.P. I Page 29
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smaancx Tax -Advisory
Communicating the Plan
Our planning memorandum will describe these aspects of the audit:
■ Audit objectives
■ Staffing and responsibilities, including manager and partner supervision
• Application of analytical procedures
■ Schedules and hour budgets by audit area
■ Materiality levels for each reporting level (City-wide, major funds and nonmajor funds)
■ A risk assessment of internal controls
■ Work paper documentation guidelines
Phase 2: Internal Control Evaluation and Preliminary Fieldwork
i As an integral part of our audit planning, we complete questionnaires, narratives
and walkthroughs relating to internal control, operations and accounting
processes. A deeper understanding of these areas helps us perform a more
thorough, efficient and effective audit. The better we understand your organization, the more helpful our
management comments and recommendations will be.
An "internal control" is any process you institute to make your operations more effective, to comply with
regulations or grant requirements, to improve the reliability of your financial reports, or to reduce the risk
of fraud or other loss. In Phase 2, we will examine your internal controls to make sure they are properly
designed and functioning as intended, particularly when those controls may affect grant expenditures
(as required by Uniform Guidance). We will test the internal control structure as part of our preliminary
(interim) fieldwork.
We will obtain an understanding of internal accounting controls' design for the following significant
transaction classes, including walkthroughs of transactions to determine whether accounting controls are
operating as designed:
■ Financial reporfing and close procedures
■ Budget process
■ Cash disbursements
■ Purchasing and bid processes
■ Purchasing and accounts payable process
■ Payroll expenditures, accrual of payroll and payroll -associated liabilities
■ Revenue recognition, cash receipts and receivables
Property taxes
Fines and fees
Licenses and permits
Charges for services
■ Capital projects disbursement and bidding
■ Cash and investment -related activities
■ Capital assets tracking and depreciation system
■ Long-term debt and debt service transactions
Additional controls will be identified during our planning process.
City of Lubbock RFP #18-14102-MA
Weaver and Tidwe I L._ P. I Page 30
weaver
Ais...a •Tmr•ACv,tory
We anticipate testing controls over:
■ Purchasing disbursements and the bid process
■ Payroll costs and payroll -related liabilities
■ Capital project disbursements and bids
■ Capital assets and depreciation system
Single Audit Testing
Because the City expends federal financial assistance, we will consider the internal control categories for
which testing are required in accordance with Uniform Guidance. These additional interna' control
categories address questions like these:
■ Transactions are properly recorded and calculated 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 identified in the Compliance Supplement
■ Funds, property and other assets are safeguarded against loss from unauthorized use or
disposition
• Specific requirements for major federal financial assistance programs
Activities allowed or unallowed
Allowable costs/cost principles
Cash management
Eligibility
Equipment and real property management
Matching, level of effort, earmarking
Period of performance
Procurement and suspension and debarment
Program income
Reporting requirements
Subrecipient monitoring
Special tests and provisions
Internal controls over the compliance requirements of major federal financial assistance programs will
also be evaluated and tested as described above. Federal programs with expenditures exceeding
$750,000 are considered Type A programs and will be evaluated for risk. High -risk Type A programs are
audited every year. All Type A programs must be audited at least once every three years.
After examining internal controls over compliance requirements for major programs, Weaver will test
each program's compliance in order to offer an opinion.
City of Lubbock RFP #18-14102-MA
Weaver rind Tidwell, L.L.P. I Page 31
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Audit Sampling
Depending on the strength of your internal control
structure, we may be able to rely on those controls to
reduce the amount of substantive testing. In that case, we
must first design tests of those controls. Randomly selected
transactions will be evaluated based on nonstatistical
methods for attribute sampling. The tests of controls, if any,
will be performed during interim fieldwork.
Audit standards, including GAAS and GAGAS, establish
guidelines for the number and ty
pe ype of both controls and .,
transactions that must be tested. Sample sizes cannot be r
determined in advance. The characteristics of your data will define the most efficient sample sizes for
your audit.
Approach in Reporting Compliance with Laws and Regulations
When we examine internal controls, we will also look at the laws and regulations that affect your financial
statements or grant reporting, from state rules to federal single audit requirements.
These steps will be taken to determine laws and regulations subject to audit tests:
■ Discuss applicable laws and regulations with City management and legal counsel, if indicated
• Leverage information from prior -year work papers
• Review certain grants and contracts
■ Review Council minutes
• Obtain written representations from management
Auditing Computerized Systems
Weaver has significant experience providing auditing and advisory services related to the major financial
and business systems used by Texas cities, including JD Edwards systems. Our procedures for evaluating
the security and integrity of IT systems typically include procedures to validate system settings and user
authorizations. Due to the size and scope of your computerized electronic data processing or information
technology (IT) function, Weaver's IT Advisory group will assist with our audit.
We use multiple frameworks and standards to conduct specific IT application and security audits,
selecting the guidelines most appropriate for each case. Our central approach is based on Control
Objectives for Information and Related Technology (COBIT), which furnishes a comprehensive
methodology to underlie all of our IT audit engagements. We apply the COBIT framework in planning,
executing and reporting the results of our IT -related services.
Application Controls
As part of our audit procedures, we will use automated scripts to evaluate critical business application
controls within your computer system. When evaluating application controls, we will perform tasks such as
reviewing documentation, comparing processes to standard business rules and practices, and verifying
access control in applications.
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Aisu..m Tar Advisory
Aipiplication Security
As part of our application procedures, we will consider system security configuration and functionality.
We will perform tasks designed to evaluate the security of your electronic systems, including the
supporting infrastructure and processes. Such tasks may include reviewing security measures surrounding
applications and sensitive data, reviewing change management controls, reviewing the physical
environment and its security, and reviewing procedures designed to protect data integrity.
Phase 3: Final Fieldwork
After you complete the year-end closing of accounts, our team will begin final
fieldwork. This is the time when we perform most of the substantive tests on your
data and prepare our audit work papers. During this time, the auditors will:
• Perform audit tests and prepare audit work papers
■ Complete audit programs, procedures and conclusions
■ Audit conversion entries to government -wide financial statements
■ Discuss audit findings and adjusting entries with City management
■ Obtain your representations and attorney letters
Throughout this phase —and throughout our entire relationship with you —Weaver will remain in close
communication with your management. Our goal is a "no -surprises" audit. Therefore, whenever there is a
question or a potential issue, we will immediately bring it to your attention, seek your confirmation of the
data and ask about any relevant circumstances.
Substantive Procedures
After years of experience, Weaver has developed a very efficient methodology for performing
substantive procedures on financial statement accounts and transactions quickly but thoroughly. The
objectives of these procedures are to provide reasonable assurance that you will be able to accurately
process, summarize and report financial data consistent with management's assertions. Those assertions
cover classes of transactions, year-end account balances, and presentation and disclosure of financial
data.
Audit areas of higher risk or significance have been identified as follows:
Higher Risk
■ Capital project expenditures (compliance with bids) and reconciliation to capital assets
• Accounts payable/accruals, payroll and payroll -related liabilities
■ Exchange revenues and receivables (enterprise funds)
■ Federal and state program revenue, expenditures and related compliance requirements
Other Significant Areas
■ Cash and investments
■ Capital assets
■ Long-term debt
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Analytical Procedures
Weaver uses analytical procedures extensively to evaluate interrelationships of financial and nonfinancial
data. Analytical procedures include:
■ Comparison of financial information with comparable prior periods, giving consideration to
known changes (e.g., comparison of revenues or expenditures with comparable interim periods
and balances for unusual or unexpected variations)
■ Comparison of actual with anticipated or budgeted results
■ Evaluation of relationships among different financial elements within the period (e.g., comparing
receivables to billings or revenues to costs)
■ Evaluation of financial information with relevant nonfinancial information
Weaver Analytics: Using "Big Data" to Detect Error and Fraud
Weaver Analytics is an internal data analytics team that uses advanced computerized data -analysis
techniques to uncover irregularities that could
indicate fraud, persistent or systematic errors and
internal control weaknesses. Weaver Analytics plays
an important role in services including enterprise risk
management, internal audit, financial and
compliance audit, and forensics and litigation
support.
During financial audits, Weaver can analyze 100
percent of your data in the areas of payroll,
disbursements, vendor and human resources. We can
identify potential risk areas that may require further
investigation by the audit team. During previous
engagements, our team has identified items such as
bid splitting and nepotism, as well as opportunities to
improve efficiencies in the disbursement process.
Examples of key findings from Weaver Analytics
include:
■ Duplicate vendors in the master vendor file
■ Duplicate invoice payments
■ Concentrations in vendors and customers that
may indicate fraud
■ Payroll checks paid in the incorrect amounts
• Payroll checks paid to former employees
■ "Ghost" employees and vendors
■ Unusual overtime patterns
By adding fraud detection and operational
compliance, as well as computer data acquisition
and analysis, Weaver can provide insights on the best
ways to improve efficiency and effectiveness of your
processes. We can also provide several dashboard -
style reports presenting information in an intuitive,
interactive format.
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Assurance • Tor -Advisory
Phase 4: Financial Review and Quality Control
Weaver has built multi -layered quality assurance processes into its audit
methodology. These layers give us repeated opportunities to check each other's
work; they also ensure that the engagement partner and quality assurance
partner are closely involved with your audit.
After fieldwork is complete, the engagement partner reviews the entire engagement, with particular
attention to significant audit areas. In addition, the draft report and work papers are reviewed by the
quality assurance partner, with the work papers available, to determine the completeness of our work.
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.
In addition to performing our internal quality review, we will also present the draft report to you, explaining
any management comments or recommendations. We want to work collaboratively with you and
provide useful information, so we will seek your confirmation of our findings and your response to our
recommendations before we issue the final documents.
Review and quality control tasks include:
■ Engagement partner review of all work papers to ensure compliance with technical standards
■ Technical review of all work papers
■ Performing any final analytical procedures
■ A client conference to review financial statements, the auditor's opinion and preliminary
management letter comments
■ Obtaining written representations from management that you have complied with contract or
grant terms
Comprehensive Annual Financial Report Review for GFOA
The engagement partner and audit senior manager (who are both members of the GFOA Special
Review Committee) will review the financial statement formats and note disclosures for internal
consistency, conformance with GAAP, and GFOA financial reporting requirements.
Phase 5: Reporting
After our internal reviews have confirmed that the audit is complete, you have
reviewed the draft reports, and we have incorporated your management
responses and related information, Weaver will issue the final audit documents (20
printed copies and electronic files):
■ A report on the fair presentation of the City's financial statements in conformity with U.S. GAAP
A report on the fair presentation of LP&L financial statements in conformity with U.S. GAAP
P. A report on the internal control over financial reporting and on compliance and other matters
based on an audit of financial statements performed in accordance with Government Auditing
Standards
► A report on compliance for each major federal and state award program and report on internal
control over compliance in accordance with the Uniform Guidance and the State of Texas
Uniform Grant Management System (UGMS), if applicable
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Asswanm 'tr•Advisory
► An "in relation to" opinion on the combining and individual fund financial statements and
schedules as well as the schedules of expenditures of federal and state awards, if applicable
► Reports on compliance with, or special reports for, PFC, TCEQ and the PFIA
► A management letter, if necessary
Our final reports on compliance and internal controls will detail any "significant deficiencies" in internal
control (as defined by GAGAS) found during the audit. Significant deficiencies that are also material
weaknesses will be identified as such in the report. Lesser deficiencies will be reported in a separate letter
to management.
Weaver will present our findings to the parties you designate. At that time, we will explain our findings,
present practical recommendations for improvement (if needed) and answer your questions. The
engagement partner and audit senior manager will also bring these reports to meetings as requested,
including audit committees, Lubbock Council, or managers and administrators. This provides your leaders
with the opportunity to ask questions directly and enables us to explain our recommendations and any
unusual findings.
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Presentation to Audit Committee and Council: Weaver's
Audit Insights
The presentation to the Audit Committee, City Council and
other stakeholders is designed to convey the most essential
results of the audit clearly, without excessive accounting
jargon.
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In addition to the opinion on the financial statements, Weaver
presents information on financial trends over time, strengths
and opportunities, and looming changes.
We will ensure the audit committee and City Council are
informed of the following information, as well as any other
items required by audit standards:
1. The auditor's responsibility under generally accepted auditing standards and government
auditing standards, including Uniform Guidance for single audits
2. Significant accounting policies
3. Management judgments and accounting estimates
4. Significant audit adjustments
5. Other information in documents containing audited financial statements
6. Disagreements with management
7. Management consultation with other accountants
8. Major issues discussed with management prior to retention
9. Difficulties encountered in performing the audit
10. Auditor's judgments about accounting principles
11. Material written communication
12. Independence -related issues between the firm and Lubbock
13. Confirmation of independence
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A ssuraaa •'r" • Advisory
Weaver will address the audit reports to the Honorable Mayor and members of the City Council. We will
provide electronic (PDF) copies with all documents.
After the end of the engagement, your engagement partner and senior manager will remain accessible
to answer your questions and help you prepare for the next audit.
Throughout the audit — and throughout our entire relationship with you — we plan
to remain in close communication with you. Our objective is to minimize surprises
while providing an efficient, effective audit.
Midyear Consultations
At Weaver, we consider ourselves your auditor all year round, not just during the audit season. We do
more than accept questions throughout the year— we encourage you to reach out to us whenever you
need to.
Year-round consultation with your engagement partner and senior manager will be provided to the City
at no additional cost, a benefit we encourage you to take advantage of. Calling us with questions in
May can save significant time during the audit.
In addition to these informal consultations, you will be invited to attend Weaver's regional free CPE Day
focused on topics of interest to government entities and nonprofits. Weaver is an accredited provider of
continuing education for both TSCPA, meaning that CPAs on your staff can earn credits by attending
these sessions.
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Exhibit C
City of Lubbock, TX
RFP 18-14102-MA
Audit of Annual Financial Statements
Insurance Requirements
Provide proof of insurance coverage for the following:
Business Automobile Liabilitv:
The audit firm's insurance shall contain a combined single limit of at least $300,000 per
occurrence, and include coverage for but not limited to the following:
• Bodily injury and property damage
• Any and all vehicles owned, used or hired
Professional Liability:
The auditor's insurance shall contain a combined single limit of a minimum of $1,000,000 per
occurrence and in the aggregate.
Workers' Compensation and Employers Liability Insurance:
The auditor shall elect to obtain workers' compensation coverage pursuant to Section 406.002
of the Texas Labor Code. Further, the auditor shall maintain said coverage throughout the term
of this contract and shall comply with all provision of Title 5 of the Texas Labor Code to ensure
that the auditor maintains said coverage. Any termination of workers' compensation insurance
coverage by Contractor or any cancellation or non -renewal of workers' compensation insurance
coverage for the Contractor shall be a material breach of this contract. The auditor may maintain
Occupational Accident and Disability Insurance in lieu of Workers' Compensation. In either
event, once the Contract is awarded, the policy must be endorsed to include a waiver of
subrogation in favor of the City of Lubbock.
Employer's Liability with limits of at least $500,000 each accident, $500,000 by disease policy
limit, and $500,000 by disease each employee shall also be obtained and maintained throughout
the term of this contract.