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HomeMy WebLinkAbout08-11-14 TC Agenda Packet Mission Statement Westlake is a unique community blending preservation of our natural environment and viewscapes, while serving our residents and businesses with superior municipal and academic services that are accessible, efficient, cost-effective, and transparent. Westlake, Texas – “One-of-a-kind community; natural oasis – providing an exceptional level of service.” Page 1 of 2 TOWN OF WESTLAKE, TEXAS Vision Statement An oasis of natural beauty that maintains our open spaces in balance with distinctive development, trails, and quality of life amenities amidst an ever expanding urban landscape. TOWN COUNCIL SPECIAL MEETING AGENDA August 11, 2014 WESTLAKE TOWN HALL 3 VILLAGE CIRCLE, 2ND FLOOR WESTLAKE, TX 76262 COUNCIL CHAMBERS Special Session: 6:30 p.m. Page 2 of 2 Special Session 1. CALL TO ORDER 2. DISCUSSION AND CONSIDERATION OF RESOLUTION 14-23 APPROVING THE FIRM OF WEAVER, L.L.P. TO PERFORM THE TOWN OF WESTLAKE’S AUDIT FOR A 3-YEAR PERIOD WITH THE OPTION OF 2 ADDITIONAL YEARS AND AUTHORIZING THE FINANCE DIRECTOR TO EXECUTE THE FY 2013-2014 AND SUBSEQUENT ENGAGEMENT LETTERS ON BEHALF OF THE TOWN OF WESTLAKE. 3. ADJOURNMENT ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. CERTIFICATION I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, August 6, 2014, by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. _____________________________________ Kelly Edwards, TRMC, Town Secretary If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you. Page 1 of 2 estlake Town Council TYPE OF ACTION Regular Meeting - Action Item Westlake Town Council Meeting Monday, August 11, 2014 TOPIC: Consider and approve the firm of Weaver, L.L.P. to perform the Town of Westlake’s audit for a 3-year period with the option of 2 additional years and authorizing the Finance Director to execute the FY 2013-2014 and subsequent engagement letters on behalf of the Town of Westlake. STAFF CONTACT: Debbie Piper, Finance Director DECISION POINTS Start Date Completion Date Timeframe: 10/1/14 9/30/19 Funding: Amount - $27,000 Status- Funded Source- Multiple Sources - see comments below Allocation between the General Fund (70%), Utility Fund (15%) and the Visitors Association Fund (15%) Decision Alignment VVM Perspective Desired Outcome Service Excellence Financial Stewardship FS.Maintain Excellence in Reporting and Financial Standards Strategic Issue Outcome Strategy Staff Action Fiscal Stewardship & Organizational Effectiveness 5. Budget according to established service level provisions within departments. SA 09B1: Financial Analysis Strategy Map or VVM Connection Strategic Issue Connection Page 2 of 2 EXECUTIVE SUMMARY A “Request for Proposal” was published in the newspaper and posted on the Town’s website with proposals to be received July 16, 2014. We received 4 proposals to perform the Town’s audit. The references have been contacted with no negative feed-back on any of the firms. The lowest proposal was from Belt Harris Pechacek, LLP from Houston. They have no presence in the metroplex and office in Houston. Their firm only audits governmental entities and was qualified to perform our audit, but the location of their offices was a detriment. There were excellent comments made related to Weaver, LLP and the professional relationships formed with the cities contacted. One of the contacts commented the Senior Manager who would be in charge of our audit was very helpful in mentoring the staff as well as coming out to help with specific problems, i.e. Fixed Assets, at no additional charge. The Finance Department has asked for software to implement a Fixed Asset system that will interface with the general ledger in FY 14-15. We are currently using an excel spreadsheet and manually adding to the general ledger. Weaver, LLP will be a great help with this endeavor. The firm has local offices and services approximately 25 cities in Texas. Several of the staff assigned to the Town have reviewed audits submitted to the GFOA Certificate of Achievement program and will be helpful in implementing new ideas to decrease the comments received. They are able to comply with the time constraints of delivering the audit report and their fee appears reasonable. The fee is the same as our FY 12- 13 audit fee. (See attached analysis of fees) ORGANIZATIONAL HISTORY/RECOMMENDATION Weaver and Tidwell performed the Town’s audit previously, but increased their audit fee by $7,500 when we received proposals; therefore, we selected Pattillo, Brown & Hill, LLP to perform subsequent audits. Recommend the Town Council approve the firm of Weaver, LLP to perform the Town of Westlake’s audit for a 3-year period with the option of 2 additional years and authorize the Finance Director to execute the FY 2013-2014 and subsequent engagement letters on behalf of the Town. ATTACHMENTS Analysis of Fees Resolution Exhibit A Proposal Firm FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Weaver, LLP 27,000$ 27,675$ 28,350$ 29,050$ 29,750$ Whitley Penn 40,100 40,100 40,100 40,100 40,100 Pattillo, Brown & Hill 27,000 27,000 27,000 27,500 27,500 Belt Harris Pechacek, LLP 26,000 26,260 26,523 26,788 27,056 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Weaver, LLP 12,500$ 12,800$ 13,100$ 13,400$ 13,750$ Whitley Penn 28,225 28,225 28,225 28,225 28,225 Pattillo, Brown & Hill 12,500 12,500 12,500 12,750 12,750 Belt Harris Pechacek, LLP 14,900 15,049 15,199 15,351 15,505 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Weaver, LLP 3,500$ 3,600$ 3,700$ 3,800$ 3,900$ 500 525 550 575 600 Whitley Penn 12,800 12,800 12,800 12,800 12,800 Pattillo, Brown & Hill 3,500 3,500 3,500 3,500 3,500 Belt Harris Pechacek, LLP 4,100 4,141 4,182 4,224 4,266 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 Weaver, LLP 5,000$ 5,050$ 5,101$ 5,152$ 5,203$ 10,500 10,605 10,711 10,818 10,926 10,500 10,605 10,711 10,818 10,926 10,500 10,605 10,711 10,818 10,926 10,500 10,605 10,711 10,818 10,926 47,000 47,470 47,945 48,424 48,907 Whitley Penn 38,100$ 38,100$ 38,100$ 38,100$ 38,100$ Pattillo, Brown & Hill 50,000 50,000 50,000 51,500 51,500 Belt Harris Pechacek, LLP 4,100$ 4,141$ 5,250$ 5,375$ 5,500$ 10,000 10,025 10,500 10,750 11,000 10,000 10,025 10,500 10,750 11,000 10,000 10,025 10,500 10,750 11,000 10,000 10,025 10,500 10,750 11,000 44,100 44,241 47,250 48,375 49,500 TSH TOWN OF WESTLAKE AND ENTITIES AUDIT PROPOSAL ANALYSIS Town Academy Foundation Resolution 14-23 Page 1 of 2 TOWN OF WESTLAKE RESOLUTION NO. 14 -23 A RESOLUTION OF THE TOWN OF WESTLAKE, TEXAS APPROVING THE FIRM OF WEAVER, L.L.P. TO PERFORM THE TOWN OF WESTLAKE’S AUDIT FOR A 3- YEAR PERIOD WITH THE OPTION OF 2 ADDITIONAL YEARS AND AUTHORIZING THE FINANCE DIRECTOR TO EXECUTE THE FY 2013-2014 AND SUBSEQUENT ENGAGEMENT LETTERS ON BEHALF OF THE TOWN OF WESTLAKE. WHEREAS, Section 103.001 of the Local Government Code requires that a municipality shall have its records and accounts audited annually and shall have an annual financial statement prepared based on the audit; and WHEREAS, Section 103.002 of the Local Government Code requires that a municipality shall employ at its own expense a certified public accountant who is licensed in this state or a public accountant who holds a permit to practice from the Texas State Board of Public Accountancy to conduct the audit and to prepare the annual financial statements, and WHEREAS, the Town Council is committed to the financial stability of the Town of Westlake and feel it is in the best interest of the citizens to obtain the services of this firm to perform the Town’s audits as set forth above; and WHEREAS, the funds to facilitate the audit will be included in the proposed FY 2014/2015. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS AS FOLLOWS: SECTION 1: That t he recitals set forth above in this Resolution are true and correct and are hereby adopted as findings of the Town Council and are incorporated into the body of this Resolution as if fully set forth herein. SECTION 2: The Town Council of the Town of Westlake, Texas, does hereby approve the firm of Weaver, L.L.P. to perform the Town’s audit for a 3-year period attached, as Exhibit “A”, with t he option of 2 additional years and authorizes the Finance Director to execute the FY 2013-2014 and subsequent engagement letters on behalf of the Town of Westlake, Texas. SECTION 3: If any portion of this Resolution shall, for any reason, be declared invalid by any court of competent jurisdiction, such invalidity shall not affect the remaining provisions hereof and the Council hereby determines that it would have adopted this Resolution without the invalid provision. Resolution 14-23 Page 2 of 2 SECTION 4: This Resolution shall become effective upon the date of its passage. PASSED AND APPROVED ON THIS 11th DAY OF AUGUST, 2014. ___________________________________ Laura Wheat, Mayor ATTEST: _______________________________ __________________________________ Kelly Edwards, Secretary Tom Brymer , Town Manager APPROVED AS TO FORM: _________________________________ L. Stanton Lowry, Town Attorney July 16, 2014 Presented to: Town of Westlake Entities Presented by: Jerry Gaither, CPA, CGFM Partner, Assurance Services 972.448.6918| jerry.gaither@weaver.com Weaver 12221 Merit Drive, Suite 1400 Dallas, Texas 75251 www.weaver.com Proposal for Independent Auditing Services Weaver and Tidwell, L.L.P Page i Proposal for Professional Audit Services (RFP #14-20) City of Westlake, Texas WEAVER AND TIDWELL L.L.P. CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 12221 MERIT DRIVE, SUITE 1400, DALLAS, TX 75251 P: (972) 490 1970 F: (972) 702 8321 Transmittal Letter July 16, 2014 Ms. Debbie Piper, CPA Finance Director Town of Westlake 3 Village Circle, Suite 202 Westlake, Texas 76262 RE: Request for Proposals for Independent Audit Services With this proposal, Weaver and Tidwell, L.L.P., (Weaver) commits to providing financial auditing services for the Town of Westlake and your associated entities. These audits will meet the requirements of your request for proposals, including government auditing standards, the U.S. Single Audit Act and Office of Management and Budget (OMB) Circular A-133, if required. We commit to offer you attentive personal service from a locally based audit team, to furnish results and reports conforming to relevant standards and your expectations, to work accurately and efficiently, and to meet your deadlines. Why will the Town of Westlake get the best results from Weaver? We offer: ▪ A Texas-based firm. With offices in nearby Dallas and Fort Worth, as well as five other Texas locations, Weaver has served Texas clients for almost 65 years. We have a deep understanding of both economic and regulatory environments here. ▪ Experience in municipal environments. Weaver currently serves as auditor for more than 100 public- sector clients, including 27 cities and towns. Through this work, we have grown familiar with the complexities of governmental accounting and financial reporting. ▪ Commitment to ongoing communication. Frequent, effective and honest communication is critical to a successful audit. Our partners and engagement team leadership remain accessible to you not just throughout the engagement, but 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. We are dedicated to meeting the timelines and other commitments set forth in our proposal. Our goal is to provide you with more than just a financial and compliance audit. We want to offer the support and guidance you need to maintain world-class financial operations — efficient, accurate and secure, as required by a town like Westlake . As Weaver’s partner on the engagement, I am authorized to contractually bind the firm; upon award, we will furnish the certificates of insurance as requested in the RFP. This proposal is an irrevocable offer for a period of 90 days from the RFP closing date. 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, Jerry L. Gaither Engagement Partner Weaver and Tidwell, L.L.P Page i Proposal for Independent Auditing Services Town of Westlake , Texas Executive Summary As a vibrant, growing Town that offers exceptional services, Westlake needs an auditor who understands your financial challenges. You need a firm who understands component units, charter schools, nonprofit reporting and the Government Finance Officers Association (GFOA) award requirements — and one who can provide the information you need to make good decisions. You need a responsive local auditor who can support and guide you through changing standards, rapidly evolving technology, and economic cycles. You need Weaver. Weaver proposes to audit financial statements of the following entities: ▪ Town of Westlake for the fiscal years ending September 30, 2014 through 2016 ▪ Westlake Academy (blended component unit) for the fiscal years ending August 31, 2014 through 2016 ▪ Westlake Academy Foundation (component unit of the Academy) for the fiscal years ending August 31, 2014 through 2016 ▪ Texas Student Housing Authority and each of the four Texas Student Housing projects (discretely presented component units of the Town) for the fiscal years ending August 31, 2014 through 2016 The Town will have the option of extending the contract for the two subsequent years, through fiscal year 2018. The 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. General Accounting Office’s Government Auditing Standards (2011); and provisions of the Single Audit Act of 1996 and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, if required. Based on the results of the audit, we will express opinions on the fair presentation of each entity’s basic financial statements and the accompanying supplementary information. We will perform specified procedures on the required supplementary information each year. In addition, we will report on the Town’s and Academy’s internal control over financial reporting and on its compliance with requirements described in generally accepted government auditing standards (GAGAS). Weaver will report on the Named to Inside Public Accounting’s “BEST of the BEST Firms” list (2012) Largest independent accounting firm in the Southwest Ranked #6 on the 2013 Largest North Texas Accounting Firms in the Dallas Business Journal Named an All-Star Firm and a Fastest Growing Firm by INSIDE Public Accounting (2013) Independent membership in Baker Tilly International, the world’s 8th largest accounting firm network FIRM OVERVIEW Industry Recognition Weaver and Tidwell, L.L.P Page ii Proposal for Independent Auditing Services Town of Westlake , Texas Town’s and Academy’s compliance with requirements applicable to each major program and internal control over compliance in accordance with the Single Audit Act and OMB Circular A-133, if required. In addition, Weaver will assist the Town in preparing a comprehensive annual financial report (CAFR) that meets the requirements of the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting. Our engagement team is very experienced with GFOA requirements; in fact, every city John DeBurro, senior manager, has ever assisted in preparing its CAFR has been awarded that Certificate of Achievement. Why Weaver? Experience With a dedicated public sector practice composed of more than 120 professionals — the largest industry practice within our firm — Weaver understands the nuances and intricacies of governmental operational structures, financials and reporting requirements. Weaver provides audit services for more than 100 public sector clients across Texas, including 40 entities that receive the GFOA award and more than 75 entities that receive federal funding sufficient for a single audit. The level of specialized knowledge we have developed over the past six decades is second to none, and we will bring that full knowledge to bear in service of the Town’s goals. Leveraging best practices and lessons learned from a wide variety of industries and organizations, we work to help you manage your financial reporting requirements efficiently, so you can focus on continuing to provide services to the businesses and citizens of Westlake. Collaboration At Weaver, success isn’t built on engagements, it’s built on relationships. We work to understand your unique needs. With a strong focus on continuity and communication, we work to cultivate a lasting, collaborative relationship with you. Our goal is not only to help the Town achieve your immediate audit objectives, but also to lay the foundation for achieving your long term strategic goals. To that end, our engagement partners provide much more than oversight and accountability during the audit — they remain available to you throughout the year. We also provide timely technical updates and consultation to ensure that you have the guidance and services necessary to help meet your changing needs over time. This collaborative spirit truly sets Weaver apart from other firms. Quality We are proud of our high standards and quality work product. Our auditors are recognized for their insight and ability to conduct both complex and relatively straightforward audits. Weaver professionals regularly author and present papers at various industry conferences. No firm in Texas can match Weaver’s experience and capabilities in providing audit services to Texas municipal entities. Weaver is a member of the AICPA Governmental Audit Quality Center. We’ve also been a member of the AICPA Center for Audit Quality since the inception of the program, and undergo an independent peer review every three years to ensure we’re maintaining the highest standards possible. Weaver has received the highest possible rating on every peer review completed to date. Value Weaver understands the importance of cost-effectiveness, especially for governmental entities. We also know you don’t want to sacrifice quality in favor of controlling costs. That’s why we focus on providing true value — ensuring that you get the highest degree of client service and quality with affordable fees. Our depth of experience and ability to leverage resources from across the firm enables us to take a function- specific approach: staffing the right resources at the right time, based on the tasks at hand. As a result, you are assured cost-efficient services without sacrificing the quality that has become our hallmark. Auditor of 5 of the 25 largest cities in the state Auditor of 10 of the 50 largest cities in the state Auditor of 16 of the 100 largest cities in the state Auditor of more top-100 Texas cities than any other firm Table of Contents License to Practice in Texas 1 Firm Qualifications and Experience 2 Partner and Staff Qualifications and Experience 6 Continuing Professional Education 9 Similar Engagements with Other Government Entities 10 Specific Audit Approach 12 Scope 12 Town of Westlake Audit at a Glance 13 The Transition to Weaver: Making it Easy 14 CAFR Preparation 14 Implementation of Auditing Standards 15 Communication, Technical Assistance and Staff Support 15 Phase-by-Phase Audit Approach 15 Potential Audit Problems 23 Technical Assistance and Education Offered Our Clients 23 Tax Approach 24 Proposed Schedule 25 Concluding Remarks 27 Cost of Services Schedule 29 Appendix A: Engagement Team Resumes 31 Weaver and Tidwell, L.L.P Page 1 Proposal for Independent Auditing Services Town of Westlake, Texas License to Practice in Texas Weaver is licensed to practice accountancy in Texas. All key staff assigned to the Town’s audit are properly licensed to practice 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 41a-1. A copy of our license is provided at right. Each client-serving partner of the firm holds a certificate as a Certified Public Accountant pursuant to that act, as does each assigned key team member for your audit. Information about each team member’s licenses and certificates is provided within the resumes in Appendix A. Weaver and Tidwell, L.L.P Page 2 Proposal for Independent Auditing Services Town of Westlake, Texas Firm Qualifications and Experience Size of the Firm Weaver is a nationally recognized, Texas-based firm with approximately 500 professionals and offices in seven major Texas cities: Dallas, Fort Worth, Houston, Austin, San Antonio, Odessa and Midland. We will manage and staff this audit from our Dallas office, which has significant experience auditing towns like Westlake. In addition, because of our closely integrated offices and use of advanced technology, you will have access to the resources of the entire firm. Governmental Audit Staff 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 serving more than 100 public sector clients. In fact, public sector clients account for nearly 40 percent of the firm’s audit revenue. Specific Government and Charter School Auditing Experience Weaver serves as financial auditor for approximately 25 cities. Of the largest 100 cities in Texas (by population), we audit 16, more than any other firm. (Data based on published 2013 audited statements.) In addition, we audit approximately 20 public school districts, four charter schools, and numerous counties, councils of governments, and various other local governments. Our governmental practice is one of the largest and most respected in Texas. Other Services In addition to audit services, 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. The benefits of this diverse experience are clear: Weaver professionals are well informed about the wide array of issues our public sector clients face. Our broad and sustained experience enables us to take a particularly thoughtful approach, balancing your short-term reporting needs with your long-term objectives. Benefits to You Because of Weaver’s depth of experience, Westlake will gain the advantages of: A knowledgeable engagement team that can alert you to pending changes and coach you through them Professionals at every level who understand Government Auditing Standards CAFR review by staff who sit on the GFOA Special Review Committee for the Certificate of Achievement for Excellence in Financial Reporting Practical guidance to help you work more efficiently and ensure accuracy Year-round access to consultation and advice from well-informed industry leaders Free admission to Weaver’s annual day of continuing professional education designed specifically for our public- sector clients Confidence in the results of your audit Weaver and Tidwell, L.L.P Page 3 Proposal for Independent Auditing Services Town of Westlake, Texas GFOA and CAFR Experience The firm is the auditor of more than 40 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. The firm has nine members of its staff who are currently members of the Special Review Committee of the GFOA that evaluate CAFRs for eligibility with Certificate of Achievement Program requirements. Two of your audit team members—Jerry Gaither and John DeBurro—are members of this Special Review Committee. One of these engagement team members who is also on the Special Review Committee will review prior-year GFOA comments and the Town’s CAFR for compliance with GFOA requirements and standards. Number and Nature of Staff Assigned to Westlake 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 your engagement have been chosen specifically for their broad understanding of public sector, utility and single audits, as well as their technical ability, experience and management skills. Partner Jerry Gaither, who has decades of experience leading government auditing engagements, will serve as the engagement partner. In this role, he will be responsible for the overall management of the engagement. Additional team members will include: ▪▪ Senior Manager John DeBurro (full-time) ▪▪ Senior Associate Meredith Churchill (full-time during field work) ▪▪ IT Advisory team members to assist in evaluating IT controls and security (part-time) ▪▪ Two audit associates (full-time during field work) The senior manager and senior associate will oversee the work of the audit associates during interim and final fieldwork. We may also draw upon additional resources and key subject matter advisors at various stages of the engagement. Our professionals have a broad range of public sector experience, knowledge and skills. With this leveraged model, Weaver is able to offer the Town a fully customized team that can adjust dynamically and quickly to meet your needs throughout all stages of the audit. It also enables us to provide a holistic, multidisciplinary audit with added innovation, thought leadership and insight. 40 clients currently receiving the GFOA Certificate of Achievement Nine members on the GFOA special review committee Two members of the SRC on the engagement team Weaver and Tidwell, L.L.P Page 4 Proposal for Independent Auditing Services Town of Westlake, Texas Our Involvement in Professional Organizations All of our technical staff are members of the AICPA, the Texas Society of CPAs (TSCPA), the Internal Auditing Association (IIA), or other organizations appropriate to their professional focus. Many of them are officers or committee chairs; some are frequently asked to make presentations at industry conferences or other professional development opportunities. These memberships and presentations are noted on individual staff members’ resumes. Weaver professionals have served in notable state-wide or even national leadership positions in our profession. Tommy Lawler, managing partner, is a former member of the AICPA Technical Issues Committee, and in that position, he dealt with all FASB pronouncements at the exposure draft stage. Terry Ford, audit partner, is a member of the AICPA National Peer Review Committee, where he evaluates member firms across the nation. Additionally, Greg Bailes, audit partner, is a past chair of the Texas State Board of Public Accountancy (TSBPA) and currently serves on a committee of the National Association of State Boards of Accountancy. David Duree, audit partner, is a former regional director of the National Association of State Boards of Accountancy, a current member of the AICPA Auditing Standards Board audit issues task force, and a past chair of the TSBPA. Jerry Gaither is also a Certified Government Financial Manager and a former member of the Technical Issues Committee of the AICPA as liaison to the Governmental Accounting Standards Board. This not only provides him with knowledge of new governmental standards before enactment, but also a role in helping shape those standards. Single Audit Experience Due to the nature and size of our public-sector practice, we audit numerous entities that receive Federal financial assistance. We audit more than 75 government and nonprofit organizations that require a single audit under OMB Circular A-133. Of those, seven are multi-faceted entities that receive in excess of $50 million in federal financial assistance, with two in excess of $100 million. Weaver and Tidwell, L.L.P Page 5 Proposal for Independent Auditing Services Town of Westlake, Texas External Quality Control Review The AICPA’s Government Audit Quality Control Center (GAQC) is a voluntary membership center for CPA firms and state audit organizations that perform governmental audits. Weaver has been a member since its inception. Every three years, the firm engages an independent accounting firm to determine if our quality control policies and procedures are suitably designed, and if our techniques for implementing these policies and procedures comply with professional standards. Each peer review has included a review of governmental audit engagements, as mandated by AICPA standards and GAQC requirements. Weaver has successfully completed all peer reviews to date. Our latest peer review was performed in September of 2013. Firms can receive a rating of pass, pass with deficiencies or fail. We are pleased to report that Weaver received the pass rating. The latest report is shown here. Field and Desk Reviews Three field reviews by the Department of Health and Human Services and the Texas Education Agency have been completed in the last three years. There were no findings. We have been notified by the Department of Health and Human Services that our audit of financial statements met federal audit requirements with no findings. We are not aware of the number of federal or state desk reviews that have been performed on our audits in the last three years; however, no findings have been communicated to us. Disciplinary Action No disciplinary action has ever been alleged and no action is pending or has ever been undertaken against the firm by the SEC, AICPA, state regulatory bodies or other professional organizations. Weaver and Tidwell, L.L.P Page 6 Proposal for Independent Auditing Services Town of Westlake, Texas Partner and Staff Qualifications and Experience At Weaver, we continually strive to bring you our best and brightest. Weaver engagement teams are marked by continuity, cross-functional communication, leadership and stability—all important factors for any engagement team to be effective. As mentioned previously, your engagement partner and managers remain accessible to you not just during the engagement, but throughout the year. This chart illustrates the team that will serve you: Continuing Education Program Policy 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, with a majority of this training in their industries of concentration. The governmental audit staff is required by GAGAS to obtain 80 hours, with at least 24 hours relating to the governmental audit environment, every two years. Each member of the engagement team has met the GAGAS requirement. Weaver and Tidwell, L.L.P Page 7 Proposal for Independent Auditing Services Town of Westlake, Texas Policy Regarding Staff Rotation We have a governmental engagement and practice planning process stressing experience and continuity in the engagement team from year to year. Weaver is committed to providing continuity and will not rotate partners or managers unless requested by the Town or required through advancement or promotion of personnel. The depth of our governmental practice ensures the Town will have experienced professionals from year to year. Assignment of Auditing Staff and Changes in Auditing Staff The individuals described in this proposal are the people who will actually do the work associated with the Town’s audit. Weaver understands the Town reserves the right to approve any change to the assigned staff, both before and during the engagement. Before implementing any personnel change, Weaver will provide the resume of the proposed substitute, offer the Town an opportunity to interview that person and allow the Town to approve or deny the change. Commitment to Equal Employment 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. Weaver and Tidwell, L.L.P Page 8 Proposal for Independent Auditing Services Town of Westlake, Texas Team Leadership Jerry L. Gaither, CPA| Engagement Partner Jerry has more than 36 years of experience auditing government entities and is the partner-in-charge of Weaver’s public sector practice. With extensive experience leading audit teams, Jerry brings specialized government industry knowledge to each of his clients. In addition, he is responsible for developing Weaver’s audit methodologies for financial auditing of government entities including cities, regional governments and public school districts as well as single audits meeting the requirements of the U.S. Office of Management and Budget (OMB) A-133. Jerry is licensed to practice as a Certified Public Accountant in Texas He is an associate member of the Government Finance Officers Association and also serves on the Special Review Committee. Jerry is a Certified Government Finance Manager and a former member of the Technical Issues Committee of the American Institute of Certified Public Accountants as liaison to the Governmental Accounting Standards Board. With Jerry’s 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’s of business administration degree in accounting from Texas Christian University. Shawn M. Parker, CPA| Quality Control Partner Shawn has more than 25 years of experience in public accounting, 16 of which have been with Weaver. As the partner-in-charge of assurance services for Weaver’s Dallas location, he is responsible for overall growth and strategy for the local department. Shawn’s practice emphasis is in auditing and accounting for government entities, employee benefit plans, closely held businesses, nonprofit organizations, municipalities and school districts. Serving on the Special Review Committee for the Government Finance Officers Association, he brings specialized technical knowledge and experience to his government clients. Shawn is a member of the American Institute of Certified Public Accountants and the Texas Society of Certified Public Accountants. He is a frequent author of articles for professional and business publications, providing valuable industry insights. Shawn earned a bachelor’s degree from the University of Nebraska at Kearney. John DeBurro, CPA | Audit Senior Manager John will serve as audit engagement manager for the Town, leading day-to-day work and overseeing audit staff. He will ensure regular communication with management on the status of the audit and will provide technical assistance relating to accounting issues. John has more than 17 years of experience in public accounting, with a focus on audits of municipalities and other government entities, including entities with government-wide net position of more than $200 million. He also has experience managing single audits that meet the requirements of the U.S. Office of Management and Budget (OMB) A-133. John is licensed to practice as a Certified Public Accountant in Texas. He is a regular speaker at industry events, and a member of the Government Finance Officers Association Special Review Committee. He graduated from New Hampshire College with a master of science degree, and has a bachelor’s degree in business administration from the University of New Hampshire. His recent public sector audit experience includes the cities of Southlake, Wylie, Lewisville and Little Elm. Weaver and Tidwell, L.L.P Page 9 Proposal for Independent Auditing Services Town of Westlake, Texas Subject Matter Advisors Marlon Williams, CPA, ACDA| Data Analytics SME Marlon Williams has audited Texas governmental entities from the firm’s Dallas office for the past 16 years. Marlon has been involved in various data-mining projects. Marlon is licensed to practice as a Certified Public Accountant in Texas. He is also an ACL Certified Data Analyst, evidence of his skill and experience analyzing large volumes of computerized data. If needed, Marlon will apply these skills to mine and efficiently analyze any large volumes of data needing to be examined at the Town. Brittany Teare, CISA| IT SME Brittany Teare will serve as an IT consultant to the audit team to test security and ensure data integrity. Brittany is a manager in the firm’s IT audit services department; she has almost a decade of experience providing IT audit and consulting services to public sector and related entities. Her professional IT experience includes controls testing performed in SAP, JD Edwards, Oracle Database, Microsoft Dynamics (Great Plains), UNIX / LINUX, and Microsoft (SQL Server, Windows Server and Active Directory) environments. Continuing Professional Education Weaver’s continuing professional education policy complies with the revised government auditing standards requirement regarding formal education for professionals responsible for planning, conducting or reporting on government audit engagements. The governmental audit staff is required by GAGAS to obtain 80 hours of CPE every two years, with at least 24 hours relating to the governmental audit environment. Specific CPE credits for the past three years for the key members of the proposed audit team are summarized below: Continuing Professional Education (CPE) Credit Hours (Three Years) Team Member Government Audit Environment Total Hours Jerry L. Gaither 87.0 123.5 Shawn Parker 51.5 128.0 John DeBurro 91.5 185.4 Meredith Churchill 35.5* 147.5 *From the past two years. Staff Continuity Weaver makes engagement team continuity a client service priority; 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. This has proven to be a true differentiator for Weaver. We are committed to providing continuity for the Town, and will not rotate partners, managers or other supervisory staff unless the Town requests a change, or a change becomes necessary as a result of staff being promoted, leaving the firm or being assigned to another office. In these cases, Weaver will obtain prior express written permission from the Town , and will provide the Town with a resume of the proposed replacement team member. Weaver and Tidwell, L.L.P Page 10 Proposal for Independent Auditing Services Town of Westlake, Texas Similar Engagements with Other Government Entities The table below provides details regarding five similar engagements completed within the past three years by Weaver’s Dallas office. We currently audit several cities and towns similar to Westlake that have both blended and discretely presented component units as part of the reporting entity. Weaver also audits four charter schools: Dallas Can Academy, Midland Academy Charter School, Lena Pope–Chapel Hill Academy, and TLC Academy, with annual audits ranging from 200 to 500 hours. Client Partner Contact Scope of Work Dates Audit Hours City of Southlake Jerry Gaither Ms. Sharon Jackson Director of Finance 817.748.8042 Annual financial and compliance audits, including AUP for Southlake Tennis Center and GFOA submission 1997– present 600 hours/ year Town of Little Elm Jerry Gaither Mr. Alan Dickerson Finance Director 214.975.0415 Annual financial and compliance audits, including single audit, block grants and GFOA submission 2012 – present 450 hours/ year City of Wylie Jerry Gaither Ms. Linda Bantz Finance Director 972.516.6122 Annual financial and compliance audits, including single audit and GFOA submission 2008– present 500 hours/ years City of Lewisville Jerry Gaither Ms. Brenda Martin Finance Director 972.219.3775 Annual financial and compliance audits, including single audit and GFOA submission 2013– present 600 hours/ year Plano ISD Jerry Gaither Mr. Richard Matkin Assoc. Supt. for Business Services 469.752.8122 Annual financial and compliance audits, including single audit and GFOA submission; forensic investigations 2007– present 800 hours/ year Weaver and Tidwell, L.L.P Page 11 Proposal for Independent Auditing Services Town of Westlake, Texas In addition to these references, below is a partial list of public sector clients for whom Weaver has provided audit services: Municipalities City of Allen, Texas*/+ City of Benbrook, Texas* City of Bryan, Texas*/+/# City of Cedar Hill*/+ City of Denton*/+/# City of Euless, Texas*/+ City of Friendswood*/+ City of Galveston*/+ City of Grand Prairie*/+ City of Houston# City of Killeen*/+ City of McKinney*/+/# City of Midlothian, Texas+ City of Rowlett+ City of Saginaw, Texas* City of Sanger, Texas City of Southlake, Texas*/#/+ City of Springtown, Texas* City of University Park*/+ City of Wylie*/+ Town of Addison, Texas*/#/+ Town of Little Elm*/+ Town of Highland Park, Texas*/+ Town of Trophy Club+ Local & County Entities Bethany Special Utility District Central Texas Council of Governments*/+ Dallas County# Denton County Transit Authority*/+ East Texas Council of Governments*/+ Edwards Aquifer Authority* Ellis County Rural Rail Transport Emergency Communication District of Ector Co. Fort Worth Transportation Authority* Houston Galveston Council of Governments# Lake Cities Municipal Utility Authority Lubbock Housing Authority* MHMR of Tarrant County* Monahans Housing Authority* North Central Texas Council of Governments*/#/+ North Texas Municipal Water District# Odessa Housing Authority* Odessa Development Corporation Pecos County TJPC Reeves County Commissary Funds Reeves County TJPC Region XI Education Service Center# Tarrant Appraisal District Tarrant County College* Tarrant County Emergency Services District No. 10 Tarrant County Tax Collectors Office# Tarrant Regional Water District# Texas Coalition for Affordable Power Texas Municipal Power Agency+ Trinity River Authority+ Williamson County */+ State Entities Employee Retirement System of Texas# Texas Adjutant General’s Office Texas Department of Insurance# Texas Lottery Commission Texas Permanent School Fund Texas State Auditor's Office Educational Entities Burleson ISD*/+ Cedar Hill ISD* Conroe ISD*/+ Dallas County Schools Fort Worth ISD*/+/# Frisco ISD#/*/+ Hurst-Euless-Bedford ISD*/+ Higher Education Servicing Corporation# Highland Park ISD*/+ Irving ISD*/+/# Keller ISD Education Foundation, Inc. Keller ISD*/+ La Porte ISD*/+ Laredo ISD */+ Mesquite ISD* Midland ISD* Montgomery ISD */+ North Texas Higher Education Authority Northside ISD*/+ Plano ISD*/+ Rockwall ISD* Tarrant County College District*/+/# Legend * A-133 Single Audits + Recipients of GFOA Award for Excellence in Financial Reporting # Internal Control and/or IT Audit Experience Weaver and Tidwell, L.L.P Page 12 Proposal for Independent Auditing Services Town of Westlake, Texas Specific Audit Approach Scope Weaver will conduct an annual financial audit of the Town’s financial statements and a single audit of federal grants, if required, for the fiscal years ending September 30, 2014, through 2016. We will also conduct annual financial audits of the following entities for the fiscal years ending August 31, 2014, through 2016: ▪ Westlake Academy ▪ Westlake Academy Foundation ▪ Texas Student Housing Authority (TSHA) ▪ TSHA Ballpark Austin Project ▪ TSHA Town Lake Austin Project ▪ TSHA College Station Project ▪ TSHA The Ridge at North Texas Project The audits will be performed in accordance with GAAS as set forth by the AICPA; U.S. General Accounting Office’s Government Auditing Standards; and provisions of the Single Audit Act of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, if required. Based on the results of the audit, Weaver will express opinions on the fair presentation of each of the Westlake Entities’ basic financial statements and the accompanying supplementary information, in relation to the basic financial statements as a whole for conformity with generally accepted accounting principles. We will perform specified procedures on the required supplementary information each year. Weaver will also report on each entity’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 generally accepted government auditing standards (GAGAS). Finally, Weaver will report on each of the Westlak e Entities’ compliance with requirements applicable to each major program and internal control over compliance in accordance with the Single Audit Act and OMB Circular A-133, if required. Weaver will make immediate, written report to governance (audit committee chair, Town manager, finance director, or executive director) of any suspected irregularity or illegal act that we become aware of. We will communicate in a letter to management any significant deficiency, material weakness, or other control deficiency found during the audit. Additional details about the reports to be issued are provided in the section “Phase 5: Reporting.” Weaver and Tidwell, L.L.P Page 13 Proposal for Independent Auditing Services Town of Westlake, Texas Town of Westlake Audit at a Glance Weaver and Tidwell, L.L.P Page 14 Proposal for Independent Auditing Services Town of Westlake, Texas The Transition to Weaver: Making it Easy Our goal is to make the transition process seamless and efficient. Current auditing standards require us to get certain information from the previous auditor before accepting a new engagement. Once those inquiries are finished, we will coordinate the work paper review as quickly as possible and begin the planning stages of the Town’s audit, with the goal of a timely understanding of your controls and processes, to tailor our request list and audit plan accordingly. Weaver can accept electronic data from virtually every accounting system on the market, which minimizes the time required by your personnel to send us necessary information. We attempt to minimize the audit’s impact on your staff by using the information your management already prepares and uses regularly. Our objective is to allocate only those tasks to you that will result in the greatest cost-efficiency overall and only after we have completed our understanding of your controls and operations. This approach ensures that we are only requesting information that has a direct impact on your financial processes and makes our audits easier not only on you, but also on your third-party vendors and investment managers. CAFR Preparation Weaver has a well-established process that will allow us to assist the Town by preparing significant portions of the CAFR without impairing our independence. We will furnish a document to guide a Town representative through a review of the financial statements, ensuring that the Town has maintained oversight and taken responsibility for the work. Both Jerry Gaither, engagement partner, and John DeBurro, senior manager, have extensive experience meeting GFOA requirements and serve on the GFOA Special Review Committee. John’s clients who have routinely received the Certificate of Achievement include: ▪ City of Southlake ▪ City of Midlothian ▪ Town of Little Elm ▪ Town of Trophy Club ▪ City of Greenville ▪ City of Frisco ▪ City of Lewisville ▪ Plano ISD ▪ Highland Park ISD ▪ City of Wylie In fact, every governmental entity that John has assisted with its CAFR has been awarded GFOA recognition. Weaver and Tidwell, L.L.P Page 15 Proposal for Independent Auditing Services Town of Westlake, Texas Implementation of Auditing Standards Each year, we will discuss with you the implementation of new standards from GASB, FASB or GAO (for 2014, GASB statements 66, 67 and 70) and how they will impact your accounting and financial reporting. We will help you develop a plan to implement these standards, or, if such plans are already in place, we will evaluate and make recommendations for improvements, if necessary. Throughout our term as auditors, we will discuss emerging accounting standards with you as they are issued, in order to help you develop plans for timely implementation. Communication, Technical Assistance and Staff Support Creating value in any engagement starts with open and regular communication — hands-on partner involvement by leaders who communicate on a regular basis. This serves as the ever-valuable foundation in every Weaver engagement. Throughout the audit — and throughout our entire relationship with you — Weaver will remain in close communication with your management team. Our philosophy 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. Weaver will identify all schedules customarily prepared by cities in conjunction with the annual audit, and provide a detailed list early enough to allow your staff time to prepare these schedules. Our objective is to allocate to you only those tasks that will result in the greatest cost-efficiency overall. Phase-by-Phase Audit Approach Weaver’s audit methodology is designed to be collaborative, comprehensive and efficient, with guidance from the engagement partner throughout. We focus on identifying potential risks that could lead to material misstatement of the basic financial statements, and tailor our audit accordingly. When we evaluate risks, we focus not only on understanding your operations and accounting processes, but also on examining your internal control systems and the personnel’s capabilities. We also take time to properly identify major programs for single audit purposes, so that the audit meets requirements without wasting our time or your money. Work Segmentation An overview of the key segments of our methodology is provided on the following page (for hours, see page 22. The timing indicated is based on our current understanding of the Town’s desired delivery of services. We will adjust the timing as necessary to accommodate your needs. Weaver is committed to meeting your 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. The following timeline will be discussed with you, and can be modified to best meet your needs. Weaver and Tidwell, L.L.P Page 16 Proposal for Independent Auditing Services Town of Westlake, Texas Control Documentation and Preliminary Fieldwork Phase 1: Planning & Risk Assessment During the planning phase, we will meet with you to learn more about your operations and processes, find out your preferences, ask for the reports and data we will need, and set milestones and deadlines. We will also review prior-year work papers and financial statements, identify potential risks and calculate a preliminary estimate of materiality. In planning our detailed audit approach, we will ensure that audit tests are designed to be 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 accounting 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; and any significant events during the past year that might have affected your financial processes. During this phase, we will develop the following key parameters and plans for the audit, including: ▪▪ Audit objectives ▪▪ Staffing and responsibilities, including manager and partner supervision ▪▪ Application of analytical procedures ▪▪ Schedules and hour budgets by audit area ▪▪ Materiality levels used for planning ▪▪ A risk assessment of internal controls Phase 2: Internal Control Evaluation, Preliminary Fieldwork As an integral part of our audit planning, we complete questionnaires, narratives and walkthroughs relating to internal control, operations and accounting processes. An in-depth 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, 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. This will be accomplished by: ▪▪ Reviewing controls and determining whether they have been placed in operation ▪▪ Assessing the materiality of the various account balances and transaction classes ▪▪ Evaluating the risk factors that could affect the scope of testing Planning and Risk Assessment Weaver and Tidwell, L.L.P Page 17 Proposal for Independent Auditing Services Town of Westlake, Texas Approach to Determining Laws and Regulations Subject to Testing In the course of planning the engagement, we will obtain an understanding of the effects of laws and regulations that have a direct and material effect on the determination of amounts in the financial statements. These steps will be taken to determine laws and regulations subject to audit tests: ▪▪ Discuss applicable laws and regulations with Town representatives and legal counsel, if indicated ▪▪ Utilize information from prior-year work papers ▪▪ Review certain grants and contracts ▪▪ Obtain written representations from management Assessment of IT System Controls Due to the anticipated size and scope of the Town’s computerized EDP function, we will use Weaver’s IT Advisory group to assist with the audit. This group will lead EDP testing. Weaver has significant experience providing auditing and advisory services related to other major financial and business systems. Our procedures for evaluating the security and integrity of EDP systems typically include procedures to validate system settings and user authorizations. A well-thought-out, scalable design of IT general and system controls at the process, transaction or application level is vital to an effective system of control. We will focus on business areas that are mission- critical—areas that may impact your ability to perform financial reporting or continue operations. While we utilize a variety of frameworks and standards in conducting specific IT application and security audits, Control Objectives for Information and Related Technology (COBIT) provides us with a comprehensive approach and methodology underlying all of our IT audit engagements and allows us to us focus on the specific requirements. We apply the COBIT framework in planning, executing and reporting the results of our IT related services. Audit Sampling The nature and size of the Town’s operations will require us to design procedures to include sampling applications. All sampling will be performed in accordance with AU Section 530 and the AICPA audit guide, “Audit Sampling.” Sampling applications will be used for these areas: ▪▪ Tests of accounting controls ▪▪ Tests of controls over compliance requirements of major federal programs ▪▪ Tests of compliance with major federal program requirements ▪▪ Substantive tests of account-balance details 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, are to be performed during interim fieldwork. The need for tests of controls for transaction cycles will be determined by our evaluation of the design and effectiveness of your accounting controls. We expect to use nonstatistical and probability-based sampling. Sample sizes depend on the characteristics of your data and cannot be determined in advance. However, we expect to test controls over cash disbursements, purchasing bids, payroll, journal entries, utility billings (water and sewer) and similar areas. Weaver and Tidwell, L.L.P Page 18 Proposal for Independent Auditing Services Town of Westlake, Texas Final Fieldwork 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 complete preparation of audit work papers ▪▪ Complete audit programs, procedures and conclusions ▪▪ Discuss audit findings and adjusting entries with 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 Weaver determines the audit approach and the specific procedures performed for various financial statement accounts and transactions (e.g., cash and investments, long-term debt, etc.) based on our experience with similar entities. We tailor these procedures to your specific accounting system and controls in order to perform the audit thoroughly and efficiently. The financial 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. Analytical Procedures During your audit, we examine more than pieces of data in isolation. We also analyze the interrelationships of financial and nonfinancial data. Our extensive use of analytical procedures offers a natural extension to the process of understanding Town operations. As we develop this understanding, we determine what ratios, relationships, and internal or external data management tools will be useful in identifying and monitoring risks. The exact analytical procedures performed for the Town will be determined during the planning process, after we have examined your accounting systems and operations. Common procedures include trend analysis, ratio analysis, and predictive or “reasonableness” tests. For example, depending on the specifics of your data and processes, we may: ▪▪ Compare financial information with comparable prior periods, taking into account any known or expected changes. For example, we will compare revenues and expenditures with comparable previous periods and balances, looking for unexpected variations ▪▪ Compare actual with anticipated results (for example, budget-versus-actual comparison of revenues and expenditures) ▪▪ Evaluate relationships among different elements within the period, such as receivables in relation to billings, or revenues in relation to costs ▪▪ Analyze financial information in light of relevant nonfinancial information (growth, political changes, new regulatory requirements, etc.) ▪▪ Perform automated data analysis (data mining) using audit command language (ACL) and similar tools Weaver and Tidwell, L.L.P Page 19 Proposal for Independent Auditing Services Town of Westlake, Texas Use of Technology in the Audit Weaver uses cutting-edge electronic technology to improve our efficiency throughout the audit process. We were one of the first CPA firms to adopt the paperless environment. Now, over years of practice, we have organized our system to create the most efficient workflow. Our paperless audit file product, CCH engagement, is used to store, review and track all items related to the engagement. In addition, our staff is skilled at using common software programs such as Excel, Access, and Crystal Reports when those tools are called for. As our client, you will have access to a portal system to exchange files—no matter how large—in a secure environment. Our portal allows both teams to store files for instant, secure access, creating a virtual private network where the audit team can collaborate with you. We use data-mining software that can analyze any size and number of records. We are able to perform analytical reviews, review general ledger information, import trial balances, review check registers, and examine various other data obtained during the audit efficiently and effectively using ACL. Marlon Williams, who leads Weaver’s work using technology in audits, is one of a very few ACL Certified Data Analysts (ACDAs) in the state of Texas. Finally, Weaver uses an instant messaging client that enables our engagement team members at different locations to discuss work papers with supervisory personnel to look at documents together or review findings no matter where they are physically. Data Extraction Software (Data Mining) Weaver uses ACL, a data extraction application used as an investigative audit tool, during our audit engagements. ACL enables us to identify transactions with a higher-than-normal risk for errors or irregularities. With this tool, we can analyze all transactions in a data file for particular attributes defined by the auditor, efficiently identifying transactions that warrant further review and testing. Typically, we use ACL to test attributes of payroll transactions, purchasing and bidding compliance, purchase cards, and compliance with finance policies as well as other specific transactions identified during the planning process. Marlon Williams, ACL Certified Data Analyst (ACDA) and the partner in charge of Weaver Analytics, will be part of the Town’s engagement team to help plan and execute these advanced analytical procedures over your data. 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 technical review partner are closely involved with your audit. After fieldwork is complete, the engagement partner will review the entire engagement, with particular attention to significant audit areas. In addition, the draft report and work papers will be reviewed by the technical review partner, with the work papers available, to determine the completeness with which the engagement has been performed. The auditor’s review will determine whether judgments made by others are reasonable in relation to the supporting data and to generally accepted accounting principles, auditing standards, government auditing standards and firm policy. We discuss and confirm our findings with appropriate Town staff whenever we discover an area of potential concern. In addition, we will review draft findings and recommendations with you throughout the engagement. At the reporting stage, there should be no surprises. Financial Review and Quality Control Weaver and Tidwell, L.L.P Page 20 Proposal for Independent Auditing Services Town of Westlake, Texas 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 Phase 5: Reporting Throughout the audit, if we become aware of irregularities or illegal acts, we will make an immediate, written report of those acts to the Town Council and management. After our internal reviews have confirmed that the audit is accurate and complete, you have reviewed the draft reports, and we have incorporated your management responses and related information, Weaver will issue the final audit documents, in both hard copy and electronic form: ▪▪ A report on the fair presentation of the Town’s financial statements in conformity with U.S. generally accepted accounting principles (GAAP), including an opinion on the fair presentation of the supplementary schedule of expenditures of federal awards in relation to the audited financial statements (10 copies) ▪▪ A report on the fair presentation of the Westlake Academy’s financial statements in conformity with GAAP (10 copies) ▪▪ A report on the fair presentation of the Westlake Academy Foundation’s financial statements in conformity with GAAP (15 copies) ▪▪ Separate reports on the fair presentation of the financial statements of the Texas Student Housing Authority (TSHA), TSHA Ball Park Austin Project, TSHA Town Lake Austin Project, TSHA College Station Project, and TSHA The Ridge at North Texas Project, in conformity with GAAP (10 copies each) ▪▪ A report on 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 for each entity (except the Westlake Academy Foundation) ▪▪ A report on compliance with laws, regulations, and grant requirements and on internal control over compliance applicable to each major federal and state award program in accordance with the U.S. Office of Management and Budget Circular A-133, if required ▪▪ Report to the Town Council and component unit governing boards and 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 designated by the Town. At that time, we will explain our findings, present practical recommendations for improvement (if needed), and answer your questions. After the end of the engagement, your engagement partner and manager will remain accessible to answer your questions and help you prepare for the next audit. The engagement partner and audit manager will also bring these reports to meetings as requested, including audit committees, governing boards, 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. Reporting Weaver and Tidwell, L.L.P Page 21 Proposal for Independent Auditing Services Town of Westlake, Texas We will assure ourselves that the audit committees or governing boards 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 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 Weaver will address our findings to the Honorable Mayor and members of Town Council, the Audit Committee, the Town Manager and Finance Director. We will also address any findings related to the Academy and Foundation to the Academy board, and any findings related to the TSHA and/or individual projects to the TSHA Executive Director. At that time, we will explain our findings, present practical recommendations for improvement (if needed), and answer your questions. After the end of the engagement, your engagement partner and manager will remain accessible to answer your questions and help you prepare for the next audit. The engagement partner and audit manager will also bring these reports to meetings as requested, including audit committees, the governing boards, 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. Record Retention Weaver will retain all working papers and reports, at our own expense, for at least five years from the report date. We will make these documents and working papers available, on request, to authorized parties or their designees, including successor auditors. Otherwise, we will protect them as confidential information. Weaver and Tidwell, L.L.P Page 22 Proposal for Independent Auditing Services Town of Westlake, Texas Staff Segmentation The following table includes the hours necessary to complete audits for the Town, Academy, Foundation, and Texas Student Housing Authority entities. Planning and Risk Assessment Control Testing and Single Audit/ Preliminary Field Work Final Field Work/ Financial Audit Financial Review, Quality Assurance, Reporting and Presentations Total Partner(s) 10 5 10 30 55 Senior Manager(s) 10 10 40 30 90 Senior Associate(s) 25 25 110 20 180 Associate(s) 15 50 195 0 260 Total 60 90 355 80 585 *Due to the interwoven nature of activities in Phases 4 and 5 of our audit methodology, these phases have been combined for the purposes of depicting hourly segmentation. Weaver and Tidwell, L.L.P Page 23 Proposal for Independent Auditing Services Town of Westlake, Texas Potential Audit Problems Based on the information provided by the Town, we do not anticipate any audit problems. Technical Assistance and Education Offered Our Clients Your engagement partner and management remain available to the Town throughout the year to answer questions. We also provide timely technical updates and consultation to ensure that you have the guidance and services necessary to help meet your changing needs over time. Weaver’s most immediate and ongoing professional development and technical assistance offered to clients occurs in the course of our work with you, during the audit and throughout the year. Our partners and managers will inform you of pending regulations and requirements, evolving industry standards and new best practices as we become aware of them. Additionally, we are available for technical accounting questions as needed at any time. Weaver routinely offers half-day to full-day continuing professional education (CPE) classes to targeted sectors of our client base, including governmental entities. These classes are led by the dedicated, industry- specific, professionals within our firm. We offer them at no cost to you; these opportunities are part of our commitment to add value to the Town. Weaver is a registered provider of CPE to the Texas Society of CPAs and these classes count as CPE hours for Texas-licensed CPAs. Please plan now to attend Weaver’s Free CPE Day, which is targeted specifically to the concerns of cities and other governmental entities. The North Texas session is planned for August 7, 2014, and we will send formal invitations in July. “Senior manager John DeBurro has always made himself available to us, not just during the field work of our audit, but all year long. Sometimes he feels more like a mentor than an auditor!” - CFO, Weaver Municipal Audit Client Weaver and Tidwell, L.L.P Page 24 Proposal for Independent Auditing Services Town of Westlake, Texas Tax Approach Simply complying with all of the current tax laws is a challenge for many organizations, but it is only one step in our approach to providing tax services. We also work to identify emerging tax issues and represent you before the IRS as your organization needs our assistance. We accomplish this by: ▪▪ Offering the highest quality of prompt, professional, and technically innovative advice ▪▪ Building and maintaining close client relationships to ensure we consistently provide tax solutions that are of the greatest benefit to you We also understand the importance of communication, with you and the tax authorities, and integrate it throughout every step of the process. We believe consistent and structured communication throughout the year is the key to a smooth tax return process. Tax partner Ira Nevelow, who leads tax compliance and planning services for many local nonprofit organizations, will work with you to help ensure that all state and national requirements are met and the Academy Foundation is prepared for looming changes. Form 990 Tax exempt organizations are required to file IRS Form 990. While there is no tax liability to consider there are numerous responses that if not answered correctly can draw IRS scrutiny. In addition, Form 990 is a public record and is available for viewing by potential donors and other interested parties. Proper completion of the form can be an important tool to market the organization. Weaver provides tax planning, tax return preparation and IRS representation services for approximately180 Form 990 filers and 75 private foundations. Weaver employs tax professionals who utilize their experience and judgment to prepare your Form 990 with both your donors and the IRS in mind. Our reputation is one of varied and in-depth experience, even during times of complicated tax reform. You can be confident that your best interests will be addressed faithfully and accurately. TAX SERVICES FOR NONPROFIT COMPONENT UNITS •• Prepare tax returns for nonprofit organizations and split interest trusts •• Identify areas of tax exposure, such as unrelated business income or excise taxes •• Consult regarding proper reporting to donors of the tax- deductible portion of their gifts •• Help organizations best utilize their chart of accounts and their accounting software’s report writing abilities to capture financial information in the format required for tax reporting •• Assist with special projects, such as accounting policy development and implementation or accounting software set up Weaver and Tidwell, L.L.P Page 25 Proposal for Independent Auditing Services Town of Westlake, Texas Proposed Schedule A preliminary, high-level schedule is provided below, based on our understanding of your needs and the work plan described in this proposal. We are committed to meeting the timelines indicated in the RFP. During the initial planning stage, we will work with you to finalize detailed, mutually agreeable schedules and the timing for receipt of information being provided by the Town. Adjustments can be made at that time to accommodate your needs, preferences and staff availability. The schedule may also be affected by any findings made during initial fieldwork. Town of Westlake Weaver and Tidwell, L.L.P Page 26 Proposal for Independent Auditing Services Town of Westlake, Texas Westlake Academy and Foundation Texas Student Housing Authority and TSHA Projects Weaver and Tidwell, L.L.P Page 27 Proposal for Independent Auditing Services Town of Westlake, Texas Concluding Remarks Weaver offers deep qualifications in all the areas most important to the Town: ▪ Recognized knowledge and experience in governmental auditing, both by the firm as a whole and by your specific audit team ▪ Experience with component units, charter schools, and nonprofit tax reporting ▪ Excellent track record of success helping clients receive the GFOA Certificate of Achievement for Excellence in Financial Reporting ▪ Local presence and responsive service ▪ Competitive fees What else makes Weaver special? Offering the resources of a national or international firm without the excessive fees Our local headquarters, combined with strategic national and international affiliations, allows us to offer you the resources of a large firm without the fees required to support national or international overhead. Committed to your complete satisfaction The only goal you can’t accomplish is the one you don’t go after! Our mission is to help you identify and achieve your financial goals. As such, we promise to deliver professional services that add measurable value. Providing unmatched client service Members of your engagement team, including senior management, will communicate with you in a timely and courteous manner all year long, not just during your engagement. As a firm and as individuals, we place great value on building long- term relationships, and providing outstanding service is one way we accomplish this. Understanding your needs As your professional services provider, we have a responsibility to learn your business and understand your needs. To accomplish this, we utilize comprehensive, industry-specific research tools to identify and address the issues facing you. Recognizing knowledge is power Each member of our client-serving staff participates in a rigorous program of continuing professional education so we can help you translate complex information into knowledge, and knowledge into decisions. We also have several specializations represented within the firm, including accredited business valuators, accredited estate planners, certified financial planners, certified fraud examiners, certified profit enhancement consultants, licensed attorneys and personal financial specialists. Taking a proactive stance on your behalf We strive to help you reach your financial goals, seize the opportunities and conquer the challenges along the way. Weaver works to keep you informed of changes in the law or services we can offer that will help you meet your goals. In addition to accounting, audit, tax and advisory services, we offer numerous specialized services, including some focused on specific industries. Weaver and Tidwell, L.L.P Page 28 Proposal for Independent Auditing Services Town of Westlake, Texas GFOA and CAFR Experience The firm is the auditor of more than 40 entities who have regularly receive the GFOA Certificate of Achievement (not all of whom are listed). We understand the reporting requirements of the GFOA and have the knowledge to help you with the reporting required. Nine Weaver staff members are currently members of the Special Review Committee of the GFOA that evaluate CAFRs for eligibility with Certificate of Achievement Program requirements. Weaver maintains internal quality control standards that will help ensure the Town’s receipt of the Certificate of Achievement. We conduct the following procedures: ▪▪ The CAFR goes through an initial review to ensure it agrees to the working trial balances that were audited. ▪▪ Once it is determined that all schedules agree to the trial balance (and to other schedules or notes within the report, where applicable), the CAFR is reviewed in relation to the GFOA checklist, financial disclosure checklist, MD&A checklist, and financial reporting checklist. Any suggestions/comments noted during our reviews will be communicated to Town staff. ▪▪ Prior-year GFOA comments are reviewed with the staff to ensure they are appropriately addressed during the preparation of the CAFR. ▪▪ The revised report is then reviewed by our staff for grammatical, format and other technical issues that may not have been observed during the first review. Our Involvement in the GFOA Jerry Gaither, audit partner, and John DeBurro, audit senior manager, are both members of the GFOA. Including them, nine Weaver professionals are members of the Special Review Committee, including: ▪▪ Jerry Gaither, partner ▪▪ James Fitts, partner ▪▪ Kevin Sanford, partner ▪▪ Adam McCane, partner ▪▪ John DeBurro, senior manager ▪▪ Sara Dempsey, senior manager ▪▪ Sarah Roberts, manager ▪▪ Greg Peterson, manager ▪▪ Jackie Gonzalez, manager Jerry Gaither is also a Certified Government Financial Manager and a former member of the Technical Issues Committee of the AICPA as liaison to the Governmental Accounting Standards Board. This not only provides him with knowledge of new governmental standards before enactment, but also a role in helping shape those standards. Weaver and Tidwell, L.L.P Page 29 Proposal for Independent Auditing Services Town of Westlake, Texas Cost of Services Schedule Weaver prides itself on offering the capabilities of a much larger firm without the expense. With our streamlined operations, we can provide the knowledge and experience you need, combined with a personal touch and individual attention. One of the most important factors in Weaver’s ability to perform cost-efficient services is our function- specific approach to rendering professional services. Weaver can field a team with experience at every level. As a result, we can apply staff time at the most cost-effective levels and rates. All-Inclusive Maximum Price Service FY2014 FY2015 FY2016 FY2017 FY2018 Financial audit for the Town of Westlake for the fiscal year ending September 30 $27,000 $27,675 $28,350 $29,050 $29,750 Financial audit for the Westlake Academy for the fiscal year ending August 31 $12,500 $12,800 $13,100 $13,400 $13,750 Preparation of IRS Form 990 for the Westlake Academy Foundation for the fiscal year ending August 31 $500 $525 $550 $575 $600 Financial audit for the Westlake Academy Foundation for the fiscal year ending August 31 $3,500 $3,600 $3,700 $3,800 $3,900 Financial audit for Texas Student Housing Authority for the fiscal year ending August 31 $5,000 $5,125 $5,250 $5,375 $5,500 Financial audit for Texas Student Housing Authority, Ballpark Austin Project, for the fiscal year ending August 31 $10,000 $10,250 $10,500 $10,750 $11,000 Financial audit for Texas Student Housing Authority, the Ridge at North Texas Project, for the fiscal year ending August 31 $10,000 $10,250 $10,500 $10,750 $11,000 Financial audit for Texas Student Housing Authority, Town Lake Austin Project, for the fiscal year ending August 31 $10,000 $10,250 $10,500 $10,750 $11,000 Financial audit for Texas Student Housing Authority, College Station Project, for the fiscal year ending August 31 $10,000 $10,250 $10,500 $10,750 $11,000 TOTAL $88,500 $90,725 $92,950 $95,200 $97,500 Weaver and Tidwell, L.L.P Page 30 Proposal for Independent Auditing Services Town of Westlake, Texas Our Investment in the Engagement A considerable amount of time is required during the first year of any engagement to train and familiarize staff with the nuances of your accounting and operations and to create necessary plans, programs and internal documents. Weaver will provide these hours of service without charge, as an investment in building a long-term relationship with you. Out-of-Pocket Expenses Weaver will not bill any additional costs for travel, lodging, subsistence or other expenses. The all-inclusive fee includes expenses. Additional Services If the Town requests additional services outside the established scope of work, Weaver will first discuss the services and associated costs with you. The costs will be negotiated based upon the timing of the work and skill level required. Determining Fees Although hourly rates are a convenient measure of effort and therefore costs, Weaver considers many factors to arrive at a fair and competitive fee. Such factors include the timing of the work, availability of professionals with suitable experience, associated risk factors, characteristics of the prospective client and its operations and our interest in working with that client. The fee proposal offered here was developed with all of these factors in mind. Manner of Payment Weaver will submit monthly invoices based on hours of work completed. Weaver and Tidwell, L.L.P Page 31 Proposal for Independent Auditing Services Town of Westlake, Texas Appendix A: Engagement Team Resumes Weaver and Tidwell, L.L.P Page 32 Proposal for Independent Auditing Services Town of Westlake, Texas Jerry L. Gaither, CPA, CGFM Partner-in-Charge, Public Sector Services Partner, Assurance Services Professional Experience ▪ More than 36 years of public accounting experience ▪ Extensive experience in the government and nonprofit industries providing financial audits, risk advisory services, forensic and litigation accounting support and consulting ▪ Directs Weaver’s strategic plans for the public sector practice, including the development of staff training, audit methodology and market development ▪ Develops Weaver’s audit methodologies for financial auditing of government entities including cities, regional governments and public school districts, providing single audits meeting the requirements of the U.S. Office of Management and Budget (OMB) A-133 ▪ Engagement partner for four of the 25 largest Texas cities and three of the 15 largest Texas school districts ▪ Serves as audit engagement partner for school districts with total assets up to $1.5 billion and total revenues up to $825 million ▪ Serves as audit engagement partner for governmental entities with government wide assets up to $1.3 billion and government wide revenues up to $350 million Representative Client Experience ▪ City of Allen ▪ City of Azle ▪ City of Carrollton ▪ City of Crowley ▪ City of Desoto ▪ City of Denton ▪ City of Duncanville ▪ City of Frisco ▪ City of Grand Prairie ▪ City of Greenville ▪ City of Haltom City ▪ City of Highland Village ▪ City of Killeen ▪ City of Lancaster ▪ City of Lewisville ▪ City of McKinney ▪ City of Rockwall ▪ City of Rowlett ▪ City of Sachse ▪ City of University Park ▪ Town of Addison ▪ Town of Highland Park ▪ Town of Little Elm ▪ Town of Trophy Club ▪ Town of Westlake ▪ Birdville ISD ▪ Carrollton–Farmers Branch ISD ▪ Fort Worth ISD ▪ Duncanville ISD ▪ Highland Park ISD ▪ Hurst-Euless-Bedford ISD ▪ Irving ISD ▪ Lancaster ISD ▪ Lewisville ISD ▪ Mansfield ISD ▪ Mesquite ISD ▪ Richardson ISD ▪ Plano ISD ▪ North Central Texas Council of Governments ▪ Central Texas Council of Governments ▪ Central Texas Workforce Development Board ▪ Greenville Electric Utility ▪ Texas Municipal Power Agency Weaver and Tidwell, L.L.P Page 33 Proposal for Independent Auditing Services Town of Westlake, Texas Jerry L. Gaither, continued Professional Involvement and Recognition ▪ Member, American Institute of Certified Public Accountants (AICPA) ▪ Member, Texas Society of Certified Public Accountants (TSCPA), Dallas chapter ▪ Member, Association of Government Accountants (AGA) ▪ Member, AICPA Government Audit Quality Center (GAQC) ▪ Member, Special Review Committee, Government Finance Officers Association of Texas (GFOAT) (More than 30 years) ▪ Associate Member, Association of School Business Officials (ASBO), Former member, Panel of Review ▪ Former Member, Technical Issues Committee to AICPA as a liaison to the Government Accounting Standards Board ▪ Former member, Strategic Planning committee, Town of Addison ▪ Former member, Charter Review committee, Town of Addison Education and Certifications ▪ Certified Public Accountant, Texas ▪ Certified Government Financial Manager, AGA ▪ Bachelor of Business Administration, Accounting, Texas Christian University ▪ Currently meets continuing professional education required by Generally Accepted Government Auditing Standards and Texas State Board of Public Accountancy Weaver and Tidwell, L.L.P Page 34 Proposal for Independent Auditing Services Town of Westlake, Texas Shawn M. Parker, CPA Partner-in-Charge, Dallas Assurance Services Professional Experience ▪▪ More than 25 years of experience in public accounting, including more than 16 years with Weaver ▪▪ Focus on auditing and accounting for government entities including water districts, municipalities and school districts, as well as employee benefit plans, closely held businesses and nonprofit organizations ▪▪ Industry experience includes government, estates and trusts, manufacturing/distribution, construction, healthcare and staffing services Representative Client Experience ▪▪ City of Cedar Hill ▪▪ City of Southlake ▪▪ Mesquite Independent School District ▪▪ North Texas Municipal Water District ▪▪ Trinity River Authority ▪▪ Town of Trophy Club ▪▪ Trophy Club Municipal Utility District ▪▪ Central Texas Workforce Development Board ▪▪ Central Texas Council of Governments ▪▪ North Central Texas Council of Governments Professional Involvement and Recognition ▪▪ Member, Texas Society of Certified Public Accountants (TSCPA), Dallas chapter ▪▪ Member, American Institute of Certified Public Accountants (AICPA) ▪▪ Member, Special Review Committee, Government Finance Officers Association (GFOA) ▪▪ Member, Nebraska Society of Certified Public Accountants (NSCPA) Education and Certifications ▪▪ Certified Public Accountant, Texas ▪▪ Bachelor of Science, University of Nebraska at Kearney ▪▪ Currently meets continuing professional education required by Generally Accepted Government Auditing Standards, and the Texas State Board of Public Accountancy Weaver and Tidwell, L.L.P Page 35 Proposal for Independent Auditing Services Town of Westlake, Texas John DeBurro, CPA Senior Manager, Audit Services Professional Experience ▪ Seventeen years of experience in public accounting ▪ Practice emphasis in accounting and auditing for governmental and nonprofit entities, including municipalities, public school districts, counties, municipal power agencies, and transportation districts. ▪ Manages the annual financial audit for four governmental entities with government-wide net position in excess of $200 million ▪ Prepares the CAFR and A-133 single audit report, state single audit report, and accountant’s reports on debt coverage ratios, when applicable, for approximately seven entities, all of which receive the GFOA award ▪▪ Supervises and reviews the work of engagement team staff ▪▪ Researches proper accounting for complex transactions and assists clients with implementation of new accounting standards Representative Client Experience ▪▪ City of Denton ▪▪ City of Southlake ▪▪ City of McKinney ▪▪ City of Frisco ▪▪ City of Greenville ▪▪ City of Lewisville ▪▪ City of Wylie ▪▪ City of Midlothian ▪▪ Town of Little Elm ▪▪ Town of Trophy Club ▪▪ Plano ISD ▪▪ Frisco ISD ▪▪ Cedar Hill ISD ▪▪ Highland Park ISD ▪▪ Wylie ISD ▪▪ Texas Municipal Power Agency ▪▪ Texas Coalition for Affordable Power ▪▪ Reeves County Professional Involvement and Recognition ▪▪ Member, Texas Society of Public Accountants and its Dallas chapter ▪▪ Member, American Institute of Certified Public Accountants ▪▪ Member, Government Finance Officers Association ▪▪ Member, Government Finance Officers Association of Texas ▪▪ Member, Special Review Committee of the Government Finance Officers Association (GFOA) ▪▪ Member, Planning Committee, Texas School Districts Annual Accounting and Auditing Conference Weaver and Tidwell, L.L.P Page 36 Proposal for Independent Auditing Services Town of Westlake, Texas John DeBurro, continued Presentations and Publications ▪▪ Speaker, Texas School Districts Annual Accounting and Auditing Conference, “GASB Update,” June 2013 and 2014, San Antonio, Texas ▪▪ Speaker, GFOAT Spring Institute, “Cash Flow Statements”, April 2013, Austin, Texas ▪▪ Speaker, GFOAT Fall Conference, “Single Audit / Grants Management Compliance”, October 2012, San Marcos, Texas ▪▪ Speaker, Summer 2012 Conference, GASB Update, June 2012, Allen, Texas ▪▪ Speaker, GFOAT Fall Conference, “Intermediate Government Accounting”, November 2011, Conroe, Texas ▪▪ Speaker, Annual Weaver CPE Event, “GASB 54”, “GASB Update,” 2011–2013 ▪▪ Speaker, Texas School Districts Annual Accounting and Au diting Conference, “Audit Findings under OMB Circular A-133 and GAS”, June 2010, San Antonio, Texas ▪▪ Speaker, GFOAT Spring Institute, “Accounting for Capital Assets: Using the New GFOA Manual”, April 2010, Austin, Texas Education and Certifications ▪▪ Certified Public Accountant, Texas ▪▪ Bachelor of Business Administration, University of New Hampshire ▪▪ Master of Science, New Hampshire College ▪▪ Currently meets continuing professional education required by Generally Accepted Government Auditing Standards and Texas State Board of Public Accountancy Weaver and Tidwell, L.L.P Page 37 Proposal for Independent Auditing Services Town of Westlake, Texas Meredith Churchill, CPA Senior Associate I, Audit Services Professional Experience ▪ Three years of experience in public accounting ▪ Practice emphasis in accounting and auditing for a wide array of nonpublic, nonprofit, and governmental entities including private foundations and schools, real estate management and investment companies, communication device providers, school districts, cities, and employee benefit plans ▪ Plans and performs audits in accordance with generally accepted auditing standards (GAAS), and with the Single Audit Act and OMB Circular A-133, where applicable, to the aforementioned entities. ▪ Supervises and reviews the work of engagement team staff ▪ Supervises the annual audits of nonpublic companies with total assets up to $53 million and revenues of $100 million ▪ Supervises the annual audits of employee benefit plan options with up to $13 million in net assets ▪ Performs the annual audit of cities and school districts with more than $1 billion in assets and $29 million in annual net income Representative Client Experience ▪ City of Denton, Texas ▪ City of Wylie, Texas ▪ Town of Addison, Texas ▪ Highland Park ISD ▪ Denton County Fresh Water Supply Districts Professional Involvement ▪ Member, Texas Society of Certified Public Accountants (TSCPA) Education and Certifications ▪ Certified Public Accountant, Texas ▪ Bachelor of Science in Accounting, Abilene Christian University ▪ Masters of Business Administration with a focus in Accounting, Abilene Christian University ▪ Currently meets continuing professional education required by Generally Accepted Government Auditing Standards and Texas State Board of Public Accountancy Weaver and Tidwell, L.L.P Page 38 Proposal for Independent Auditing Services Town of Westlake, Texas Ira L. Nevelow, CPA, AEP, JD Partner-in-Charge, Estate, Gift and Trust Taxation Services Professional Experience ▪ More than 30 years of experience in public accounting with concentrations in taxation of estates and trusts, nonprofit organizations and individuals ▪ Extensive experience working with individuals to strategically manage tax compliance responsibilities related to business and personal matters, including gift and estate planning and Texas separate property issues as a result of divorce ▪ Counsels nonprofit organizations regarding compliance responsibilities, unrelated business income, private foundation excise tax and gift substantiation issues ▪ Provides individual and business Internal Revenue Service proceeding representation ▪ Significant experience providing tax and financial consulting to privately-held and owner- managed businesses in a variety of industries, including investment partnerships, professional services organizations and real estate entities Representative Client Experience ▪▪ America Can! ▪▪ Dallas Lighthouse for the Blind ▪▪ Senior Citizens of Greater Dallas ▪▪ Community Council of Greater Dallas ▪▪ St. Paul Medical Foundation ▪▪ YWCA of Metropolitan Dallas Professional Involvement and Recognition ▪ Member, Texas Society of Certified Public Accountants (TSCPA) o Member, Nonprofit Organizations Conference committee o Former Chairman, Taxpayer Education committee, Dallas chapter ▪ Member, Gulf States Area TEGE (Tax Exempt and Governmental Entities) Council ▪ Member, American Institute of Certified Public Accountants (AICPA) ▪ Member, State Bar of Texas and Dallas Bar Association Education and Certifications ▪ Certified Public Accountant, Texas ▪ Accredited Estate Planner ▪ Licensed Attorney, Texas ▪ Juris Doctor, University of Houston ▪ Bachelor of Business Administration, Accounting, The University of Texas at Austin ▪ Currently meets continuing professional education required by the Texas State Board of Public Accountancy Weaver and Tidwell, L.L.P Page 39 Proposal for Independent Auditing Services Town of Westlake, Texas Marlon B. Williams, CPA, ACDA Partner, Assurance Services Professional Experience ▪▪ More than 17 years of experience in public accounting ▪▪ Leads the Weaver Analytics practice group, developing sophisticated data-mining and automated tools that can identify anomalies and potential areas of concern in large volumes of electronic data ▪▪ Directs Weaver’s use of ACL, a software tool used to analyze financial and other data during audits ▪▪ Practice emphasis in auditing and consulting with numerous nonprofit organizations, municipalities and independent school districts ▪▪ Significant experience in accounting and auditing of companies in the manufacturing, wholesale/distribution, financial services and service industries ▪▪ Member of Weaver’s Technical Integration Task Force Representative Client Experience ▪▪ City of Duncanville ▪▪ Garland ISD ▪▪ Irving ISD ▪▪ Allen ISD ▪▪ North Texas Regional Water District ▪▪ Lake Cities Municipal Utility Authority ▪▪ City of Cedar Hill ▪▪ City of Greenville ▪▪ City of Lancaster ▪▪ City of McKinney Professional Involvement and Recognition ▪▪ Member, Texas Society of Certified Public Accountants (TSCPA) ▪▪ Member, American Institute of Certified Public Accountants (AICPA) ▪▪ Member, Texas ACL User Group Education and Certifications ▪▪ Certified Public Accountant, Texas ▪▪ ACL Certified Data Analyst ▪▪ Bachelor of Business Administration, Accounting, Abilene Christian University Weaver and Tidwell, L.L.P Page 40 Proposal for Independent Auditing Services Town of Westlake, Texas Brittany George Teare, CISA Senior Manager, Advisory Services Professional Experience ▪▪ Nearly 10 years of experiencing performing IT audit, security and consulting services, including more than six years of public accounting experience ▪▪ Experience in oversight of the planning and performance of many of Weaver’s most significant IT controls engagements, which have a heavy focus on information security ▪▪ Practice emphasis in internal and external IT audits including risk assessment, planning and execution ▪▪ More than two years of experience in KPMG’s Information Technology Advisory practice and two and a half years with TXU/Capgemini Energy ▪▪ Managed System, Integration and User Acceptance testing activities across multiple project teams for projects sponsored by ERCOT (Energy Regulatory Commission of Texas) involving market participants across Texas while at TXU/Capgemini Energy ▪▪ Responsible for the oversight and management of the development and maintenance of annual IT audit and security project plans for multiple Fortune 500 companies. Additional experience in leading compliance engagement sections/phases, including the documentation of controls design and testing of controls ▪▪ Industry experience includes: technology solutions, utilities, oil and gas, municipalities, telecommunications, financial services, healthcare, food services, banking, government ▪▪ Documented and evaluated (SAP) internal general and application controls for compliance with security policies ▪▪ Oversight and coordination with external auditors and other outside consultants to ensure timely completion of SOX attestation, assistance in planning and coordinating SOX training sessions and SOX planning/status meetings ▪▪ Professional IT experience includes security controls testing performed in SAP, JD Edwards, Oracle Database, UNIX / LINUX, and Microsoft (SQL Server, Windows Server and Active Directory) environments Representative Client Experience ▪▪ Garland ISD ▪▪ City of Denton ▪▪ Baptist General Convention of Texas ▪▪ Frisco ISD ▪▪ City of Fort Worth Professional Involvement and Recognition ▪▪ Board Member, Information Systems Audit and Control Association (ISACA) ▪▪ Member, Institute of Internal Auditors (IIA) ▪▪ Member, AFCOM ▪▪ Member, Metroplex Technology Business Council (MTBC) ▪▪ Steering Committee Member, Cloud Computing Special Interest Group of the MTBC ▪▪ Member, Cloud Security Alliance (CSA) Education and Certifications ▪▪ Certified Information Systems Auditor ▪▪ SAP Certified Consultant ▪▪ Bachelor of Business Administration, Management Information Systems, University of Oklahoma Town of Westlake Item # 3 – Adjournment Back up material has not been provided for this item.