HomeMy WebLinkAboutRes 14-13 WA Approving Auditors Weaver LLP WESTLAKE ACADEMY
SOLUTION NO. 1 -13
A RESOLUTION OFT E BOARD OF TRUSTEES OF WESTLAKE ACADEMY
APPROVING THE FIRM OF WEAVER, L.L.P. TO PERFORM WESTLAKE
ACADEMY'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 WESTLAKE ACADEMY.
WHEREAS, Section 44.008 of the Education Code requires that all school districts,
including charter schools, must have their fiscal account audited annually at their own expense by a
certified public accountant holding a permit from the Texas State Board of Public Accountancy;
and
WHEREAS, the Finance Director and Finance staff have considered the accounting firms
that responded to the Request for Proposals regarding the audit and recommend that the Board of
Trustees approve the firm of Weaver, LLP to perform Westlake Academy's annual financial audit
for a 3-year period with the option of 2 additional years; and
WHEREAS, the funds to facilitate the audit will be included in the proposed FY
2014/2015.
NOW, THEREFORE, BE IT RESOLVED BY THE BOAR OF TRUSTEES OF
WESTLAKE ACADEMY:
SECTION l: That, all matters stated in the recitals hereinabove are found to be true and
correct and are incorporated herein by reference as if copied in their entirety.
SECTION 2: That, the Board of Trustees Westlake Academy does hereby approve the
firm of Weaver, L.L.P. to perform the Academy's audit for a 3-year period with the option of 2
additional years and further authorizes the Finance Director to execute the FY 2013-2014 and
subsequent engagement letters on behalf of Westlake Academy.
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 WA 14-13
Page 1 of 2
SECTION 4e This Resolution shall become effective upon the date of its passage.
PASSED AND APPROVED ON THIS 11th DAB' OF AUGUST, 20140
Laura heat, Mayor
ATTEST:
i
Kelly Edwar4s Secretary Tom B , Manager
APPROVED AS TO FORM:
Janet SBubert or L. Stanton Lowry,
School Attorney
Resolution WA 14-13
Page 2 of 2
weave r
Assurance-Tax-Advisory
Proposal for Independent Auditing Services
July 16, 2014 Presented to:
Town of Westlake
Entities
Presented by:
Jerry Gaither, CPA, CGFM
Partner, Assurance Services
972.448.6918 1 jerry.gaither @weaver.com
Weaver
12221 Merit Drive, Suite 1400
Dallas,Texas 75251
www.weaver.com
Resolution WA 14-13
weaver)oo-
Assurance-Tax•Advisory
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. 12221 MERIT DRIVE,SUITE 1400,DALLAS,TX 75251
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS P:(972)4901970 F:(972)7028321
weaver
Assurance•Tax•Advisory
Executive Summary
As a vibrant, growing Town that offers
exceptional services, Westlake needs an
auditor who understands your financial
Industry
challenges. You need a firm who Recognition
understands component units, charter
schools, nonprofit reporting and the F
Named to Inside Public
Government Finance Officers Association Accounting's "BEST of the BEST
(GFOA) award requirements — and one Firms" list (2012)
I
who can provide the information you need Largest independent accounting
firm in the Southwest r
to make good decisions. You need a
responsive local auditor who can support Ranked #6 on the 2013 Largest
North Texas Accounting Firms in
and guide you through changing standards, the Dallas Business Journal
I
rapidly evolving technology, and economic Named an All-Star Firm and a
Cycles. Fastest Growing Firm by INSIDE
Public Accounting (2013)
Independent membership in Baker
You need Weaver. Tilly International,the world's 8th
largest accounting firm network
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
Weaver and Tidwell, L.L.P Page i
Proposal for Independent Auditing Services Town of Westlake,Texas
weave•
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? Auditor of 5 of the 25 largest
experience cities in the state
With a dedicated public sector practice composed of more Auditor of 10 of the 50 largest
than 120 professionals—the largest industry practice within our cities in the state
firm—Weaver understands the nuances and intricacies of Auditor of 16 of the 100 largest
governmental operational structures,financials and reporting cities in the state
requirements. Weaver provides audit services for more than 100
public sector clients across Texas,including 40 entities that e Auditor of more top-100 Texas
receive the GFOA award and more than 75 entities that receive cities than any other firm
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.
Weaver and Tidwell,L.L.P Page ii
Proposal for Independent Auditing Services Town of Westlake,Texas
wearer
A.ssua ance-Tax-Advisory
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
weave,
License t® 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, rxxas sezte Eowv; of Pil.*: Avlou6tancv
Article 41 a-1. A copy of our license is provided at right.
Each client-serving partner of the firm holds a certificate oF .'
as a Certified Public Accountant pursuant to that act,as F ' V UR�$-7 10.
p F(�2TLJOR3'N�Tx 76907
does each assigned key team member for your audit.
FIrr6U08rse it):P043U SF viow j
Information about each team member's licenses and erfceLicenseID:V01783 Fom"Na 1 b8
certificates is provided within the resumes in
Appendix A.
D. Worth
Midland/Odessa
Austin
e
Houston San Antonio
Weaver and Tidwell,L.L.P Page 1
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Firm Qualific .,
Experience.
Size of the Firm
Weaver is a nationally recognized,Texas-based firm with L t
approximately 500 professionals and offices in seven major
1
Texas cities:Dallas,Fort Worth, Houston,Austin,San
Antonio,Odessa and Midland.
JA
i
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.
BecauseofWe,;\t,
Governmental Audit Staff ,-ke W11 gain the advantages of,
Weaver has a dedicated practice focused on public A knowledgeable engagement
sector entities across the state of Texas.It is one of the that can alert you to .
largest industry practices in the firm,with more than 120 and coach y.u throug
professionals serving more than 100 public sector clients.In
fact,public sector clients account for nearly 40 percent of Professionals at every level who
the firm's audit revenue. understand Government Auditing
• !. .
Specific Government and Charter School Auditing CAFR review
Experience GFOA Special --
Weaver serves as financial auditor for approximately 25 Certificate of
cities.Of the largest 100 cities in Texas (by population),we Excellence in Financial
audit 16,more than any other firm. (Data based on Practical guidance to help you work
published 2013 audited statements.) more efficiently • ensure accuracy
In addition,we audit approximately 20 public school -• • • - •
districts,four charter schools,and numerous counties, advice from well-informed industry
councils of governments,and various other local leaders
governments.Our governmental practice is one of the _ admission to Weaver's annual ••
largest and most respected in Texas. of continuing professional education
designed specifically our public-
Other Services sector clients
In addition to audit services,we also provide public sector Confidence _ results
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.
Weaver and Tidwell,L.L.P Page 2
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Assurance.fax-Advisory
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 Ejlr%n.r!E
i c hic•r,rurc:?
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 40 clients currently receiving
members of the Special Review Committee of the GFOA the GFOA Certificate of
that evaluate CAFRs for eligibility with Certificate of
Achievement Program requirements.Two of your audit Achievement
team members—Jerry Gaither and John DeBurro—are Nine members on the GFOA
members of this Special Review Committee. special review committee
• Two members of the SRC on the
One of these engagement team members who is also engagement team
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.
Weaver and Tidwell,L.L.P Page 3
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver)101-
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 7"aa_1;Q6W,Qt
memberships and presentations are noted on individual staff members' resumes. t4t#e�R�kttQ Aatantg
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 N
AICPA Technical Issues Committee,and in that position,he dealt with all FASB The Instiwtr oF
pronouncements at the exposure draft stage. ftvml Auditw:x
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
Govr�ntztcnt
Governmental Accounting Standards Board.This not only provides him with
+tfem-q er 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 4
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver CPA' Gdvi montat
Wernal 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 EideBailly
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 ,�•,M Na,IrSl Ncp,a4
rating.The latest report is
shown here.
tMoltera NO
Field and Desk Reviews Todl, pN wmot\\'rAwrand'lQuAl,l.fi
acid t1w Nalmwi P. Revico Vonmtin.:
Three field reviews by the
Department of Health and Welta,el oi.weallt,. „fyay li[c cwum,fiv111:a:.uunlingand auditing jvwti.aaf\\';a..rwid 1'iilwtlh
Human Services and the L.I..P,(thetinn)n}ytlieAlet.coon-NWiwwr ineffiecllol'fllasaa(rn,d'N.lac31.'u1.:-tau'pcaresie,cwa�
eonduet i in n:cuaarr wish the limaard,14 pfmiwg and Rgoning on Peer Review emahkiied by t}te Texas Edu cation Agency
Peer Review llmml of the \nhericmi In opine oft iiii r1 Ihlhlw.\c rnunama, \,A paA of otr}xrer review.we
have been completed in the naKl&'lVJ re%kht lam'netdnlon etttilk i1fap}9icahte-ill kkunuittiu,flu nalow wldslaa.,fnur p,w,amr,
'111e 111111 k r lu n ihl liu ia' nun;a-t'Vmeltt of quality,v,unil And „nplt ing with it to In,v lic the f inn with
last three years.There were l-,,,,.,,uhl;a xu:un,ofp d ktuu,-:ndt yxatingin mliarnil\„hllr tmd,"d.wall
no findings.We have been lumerialrcNpmi .Our re>pan%N}ity iitoekprcs,:mopinimonthcde�ignol'tlraauewolqualit.Ncomrol.udtile
finu's.,anpil:utcc Illnrwiih basxl,at oilr reticw.'thv n:mrce.ah;.4'U\eS.S,Y,}4.Imth:nl(91�if[.Ald the pnKCthq�s
notified by the Department perl;mud in n System Ro•iew are descithed ill llte,vntxiara,nt ww,v.airna.om uraummaa.
of Health and Human A,mitred by the mandwd,.engagenme,--le-cled tor mle„inchldett;ngnswmclu+pert'mm, unary
Services that our audit of cd.+v naueasl:i ws:•n,:g SauuSudr:a 11thL,"J 7liploy v1 itel1114alC,audit,I 11.,m,ed uwlo FOlcla 111111
financial statements met evamunaliansofFendv+r}anizatialn( rciatN;'miraiimat'ool.A'Ut)Qlatxl2a,_ra_anent<\
federal audit requirements Ill OUT.y,iniow.thestxlet not'quulily ctmlrol6w tile aerxmtatg:ndandilin pwtieeol-WemeraldTiJw:ll.
LIT,applicuhlc it,lnai-SIX 6-Aien in of"l for that ear ended\Int 31.?013,hi been suilablt aesi,med mXl
with no findings.We are not complted%%illi to provide the firm oflvi forming and teponing in waii
aware of the number of app}w,lhla pmk—iolwl F1n.kht-&in all nhin iial re-yyeelx.Firm,can re"we a rating iwr:nr,,fer,m u X?
federal or state desk reviews or lief.\\raver and Tidwell.1.1.II.1w r-cv wd a pwr wvww riling of;zz,..
that have been performed
on our audits in the last three ' '�""7 "0�
years;however,no findings N&Will,UT
have been communicated
to us.
Disciplinary Action
No disciplinary action has
ever been alleged and no 81
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 5
Proposal for Independent Auditing Services Town of Westlake,Texas
weayer)oo-
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:
Town of Westlake
-rry Gaither,
V,,7:vticsPadner Engagement Partner Quality Control Partner
Bdftny Team.CISA John DeBurro, CPA Ira Nevellow,CPA
Audit IT Senior Manager Audit Senior Manager Tax Partner
Meredith Churchill, CPA
- •r Associate
Audit Staff
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 6
Proposal for Independent Auditing Services Town of Westlake,Texas
wRegarding 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 7
Proposal-for Independent Auditing Services Town of Westlake,Texas
weaver #4'
,lssurar,ca,r,rr..ii�l;sr,:y
Team Leadership
Jerry L.Gaither,CPA I 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 I 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
f 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
f 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 8
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
r
Assurance.Fax•Advisnry _
Subject Matter Advisors
Marlon Williams,CPA,ACDA I 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 I 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
r 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)
Government
Team Member 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.
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Proposal for Independent Auditing Services Town of Westlake,Texas
we aye-
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.
Partner Contact Scope of Work Dates Audit
I Hours
Annual financial and
1997-
City of Southlake Jerry
Ms.Sharon Jackson compliance audits, 600
Gaither Director of Finance including AU for Southlake present hours/
817.748.8042 Tennis Center and GFOA year
submission
Annual financial and
2012-
Town of Little Elm Jerry
Mr.Alan Dickerson compliance audits, 450
Finance Director including single audit,block hours/
Gaither 214.975.0415 grants and GFOA present year
submission
Annual financial and
Ms. Linda Bantz 500
City of Wylie Jerry compliance audits, 2008-
Gaither Finance Director including single audit and present hours/
972.516.6122 GFOA submission years
Annual financial and
Ms. Brenda Martin 600
City of Lewisville Jerry compliance audits, 2013-
Gaither Finance Director including single audit and present hours/
972.219.3775 GFOA submission year
Mr. Richard Matkin Annual financial and
Plano ISD Jerry Assoc.Supt.for compliance audits, 2007-
800
Gaither Business Services including single audit and present hours/
469.752.8122 GFOA submission;forensic year
investigations
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Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
In addition to these references,below is a partial list of public sector clients for whom Weaver has provided
audit services:
Municipalities State Entities
City of Allen,Texas*/+ Edwards Aquifer Authority* Employee Retirement System of
City of Benbrook,Texas* Ellis County Rural Rail Transport Texas#
City of Bryan,Texas*/+/# Emergency Communication District Texas Adjutant General's Office
City of Cedar Hill*/+ of Ector Co. Texas Department of Insurance#
City of Denton*/+/# Fort Worth Transportation Authority* Texas Lottery Commission
City of Euless,Texas*/+ Houston Galveston Council of Texas Permanent School Fund
City of Friendswood*/+ Governments# Texas State Auditor's Office
City of Galveston*/+ Lake Cities Municipal Utility Authority
City of Grand Prairie*/+ Lubbock Housing Authority* Educational Entities
City of Houston# MHMR of Tarrant County* Burleson ISD*/+
City of Killeen*/+ Monahans Housing Authority* Cedar Hill ISD*
City of McKinney*/+/# North Central Texas Council of Conroe ISD*/+
City of Midlothian,Texas+ Governments*/#/+ Dallas County Schools
City of Rowlett+ North Texas Municipal Water Fort Worth ISD*/+/#
City of Saginaw,Texas* District# Frisco ISD#/*/+
City of Sanger,Texas Odessa Housing Authority* Hurst-Euless-Bedford ISD*/+
City of Southlake,Texas*/#/+ Odessa Development Corporation Higher Education Servicing
City of Springtown,Texas* Pecos County TJPC Corporation#
City of University Park*/+ Reeves County Commissary Funds Highland Park ISD*/+
City of Wylie*/+ Reeves County TJPC Irving ISD*/+/#
Town of Addison,Texas*/#/+ Region XI Education Service Keller ISD Education Foundation,Inc.
Town of Little Elm*/+ Center# Keller ISD*/+
Town of Highland Park,Texas*/+ Tarrant Appraisal District La Porte ISD*/+
Town of Trophy Club+ Tarrant County College* Laredo ISD*/+
Tarrant County Emergency Services Mesquite ISD*
Local&County Entities District No. 10 Midland ISD*
Bethany Special Utility District Tarrant County Tax Collectors Montgomery ISD*/+
Central Texas Council of Office# North Texas Higher Education
Governments*/+ Tarrant Regional Water District# Authority
Dallas County# Texas Coalition for Affordable Power Northside ISD*/+
Denton County Transit Authority*/+ Texas Municipal Power Agency+ Plano ISD*/+
East Texas Council of Trinity River Authority+ Rockwall ISD*
Governments*/+ Williamson County*/+ Tarrant County College District*/+/#
Legend
*A-133 Single Audits
+Recipients of GFOA Award for Excellence in Financial Reporting
#Internnl Cnntrnl nnri/nr IT At Fxnerience
Weaver and Tidwell, L.L.P Page 11
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver Assurance-lax.Ad'visary
Specific Audit Approach
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 Westlake 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 12
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver !opkw-
Assmailce-Tax-Advisory jjlljlj1;1I
Town of Westlake Audit at a Glance
Activities Purposes Timing
• Sel a mutudly ogrtooble = atioblish an auditstru Yulethat Upon engageff-leni
Planning an schedule .61locn'tie's both client and firm vffoiwts
• Review prevous oudit reports appropriately Detolead pion and
• Request schedules for Transition from:previous auditor PBC list delivered by
preliminary fieldwork efficiently July 31 fAcudemy.,
• Assess risks for significant audit Providesufficient lead tirfve for6licml- FounclotionJSHA)or
areas provdedsz,,hedules August 31 (Town)
• Assess and test internal controls • Confirm effectiveness of controls and ACndm)y/I`oundaflon/TSflA
• Refine audit plan make suggestions for improvement August
• Perform procedures on Identify risks based on internal control
preliminary audit schedules processes Town—October
• Create a refined,tightly focused,
detailed audit plan
• Perform substantive testing and • Ensure financial statements are Academy/Foundation/
data analysis appropriately stated TSHA—late October—
Final Fieldwork Discuss questions or issues with • Maintain frequent,open early November
management communication with management
Town--December
•L
Perform final analytical reviews • Establish confidence in the accuracy Academy/Foundation/
• Review results and conclusions and thoroughness of the audit TSHA drafts presented by
Financial Perform quality assurance Ensure that management has a clear lost Monday of November
Review and review understanding of any issues or
Quality Contro Discuss preliminary report and recommendations for improvement Town draft presented by first
recommendations with Wednesday of January
L- management and audit
committee
• Issue final reports,management Ensure that appropriate stakeholders Academy/Foundation/TSHA
letter and presentation have a clear understanding of the reports presented at
Rep Deliver final reports audit results and recommendations January meetings
• Make presentations to Instill public confidence in the
City Council,if requested organization's financial practices and Town reports presented at
L reports February Council meeting
Weaver and Tidwell,L.L.P Page 13
Proposal for Independent Auditing Services Town of Westlake,Texas
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Assueoner-Tax-Advisory
R-ie 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 Pre orcifion
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 Frisco
• City of Midlothian City of Lewisville
• Town of Little Elm Plano ISD
• Town of Trophy Club Highland Park ISD
• City of Greenville 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 14
Proposal for Independent Auditing Services Town of Westlake,Texas
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Assurance-Tax-Advisory
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, `t=echnical 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 Prepare for NeKt Continuous
your operations and accounting processes,but also on L Communication
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 15
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Assurance-Tax-Advisory
Phase 1: Planning & Risk Assessment
Planning During the planning phase,we will meet with you to learn more about your
. Risk operations and processes,find out your preferences,ask for the reports and data
Assessment 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
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
Weaver and Tidwell,L.L.P Page 16
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Assurance•Tax•Advisory
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 17
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Assurance•Tax•Advi.saty
Phase Ne Rnall FR4twa*
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 18
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Assurance.)ax•Advi.sary
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.
1hase 4: Financial Review and Quality Control
OR� _ o Weaver has built multi-layered quality assurance processes into its audit
and Q ` methodology.These layers give us repeated opportunities to check each other's
Control 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.
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Proposal for Independent Auditing Services Town of Westlake,Texas
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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 o 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.
Weaver and Tidwell,L.L.P Page 20
Proposal for Independent Auditing Services Town of Westlake,Texas
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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. • i
The engagement partner and audit manager will also bring l7�
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 21
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver �Assupance- i
Shaft Segmenkftn
The following table includes the hours necessary to complete audits for the Town,Academy,Foundation,
and Texas Student Housing Authority entities.
Control Testing Financial
Planning and and Single Final Field Review. Quality
Audit/ Work/ Assurance, Total
Risk Assessment Preliminary Field Financial Audit Reporting and
Work Presentations
Partner(s) 10 5 10 30 55
Senior 10 10 40 30 90
Manager(s)
Senior 25 25 110 20 180
Associate(s)
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 22
Proposal for Independent Auditing Services Town of Westlake,Texas
weave- isory
Potential Akidt Problems
Based on the information provided by the Town,we do not anticipate any audit problems.
'Technical Asssista n c e- a,n E du atic)n c e c,' ' fur lien'ts
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 23
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Assurance.Tax•Advisary
Tax Approach
Simply complying with all of the current tax laws is a
challenge for many organizations,but it is only one step in TAX SERVICES FOR NONPROFIT
our approach to providing tax services. We also work to COMPONENT
identify emerging tax issues and represent you before the
IRS as your organization needs our assistance.We
accomplish this by: 0 Prepare tax returns for • • •
organizations and split interest
Offering the highest quality of prompt, trusts
professional,and technically innovative advice 0 Identify areas • • exposure,
Building and maintaining close client relationships as unrelated business
to ensure we consistently provide tax solutions income or excise • _
that are of the greatest benefit to you 0 Consult regarding proper
We also understand the importance of communication, reporting to donors of •
with you and the tax authorities,and integrate it deductible •• • of _ gifts
throughout every step of the process. We believe 0 Help organizations best utilize their
consistent and structured communication throughout the chart of accounts • • their
year is the key to a smooth tax return process. accounting . • -'s repo
writing abilities • capture
Tax partner Ira Nevelow,who leads tax compliance and financial in the format
planning services for many local nonprofit organizations, required • • reporting
will work with you to help ensure that all state and national _
requirements are met and the Academy Foundation is special • •
prepared for looming changes. as accounting ••
development • •
implementation or accounting
Form 990 software set
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 approximatelyl 80
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.
Weaver and Tidwell,L.L.P Page 24
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver.pr-
Asuitrince f
Proposed Schedde
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
sept Nov Jan
2014 2Q14 2015
Planning&Risk
Assessment
(f BC list provided by$/31)
Control Testing&
Preliminary Fieldwork
Final Fieldwork
Financial Review&
Quality Control
(Draft delivered by first
Wednesdayin January)
Reporting
(final reports delivered at
February Council meeting)
Weaver and Tidwell,L.L.P Page 25
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Assurance-Tax•Advisory
West-loke Academy and Foundation
Aug Oct Dec
2414 2Q14 2035
Planning&Risk
Assessment
(D-3C list provibeao/7.¢31.)
Control Testing&
Preliminary Fieldwork
Final Fieldwork
Financial Review&
Quality Control
(Drafts delivered by last
Monday in November)
Reporting
(Final reports delivered at
January board meetings)
Texas Student Housing Authority and TSHA Projects
Aug Oct Dec
2014 2014 2015
Planning&Risk
Assessment
(PBC list provided by 7/31)
Control Testing&
Preliminary Fieldwork
Final Fieldwork
Financial Review&
Quality Control
(Drafts delivered by last
Monday in November)
Reporting
(Final reports delivered at
January board meeting)
Weaver and Tidwell,L.L.P Page 26
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Assuranre•Tax•Advisory
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,fax and advisory services,we offer numerous
specialized services,including some focused on specific industries.
Weaver and Tidwell,L.L.P Page 27
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
f{.4 i(df'fl PifP l�],:�r!C]!�i <)/
GFOA and CAR Fxpei ence
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 _Cel ti cat e
Manager and a former member of the Technical Issues �Achievement
Committee of the AICPA as liaison to the Governmental
Accounting Standards Board.This not only provides him with 11117-TITTI-14 4 1711,113
knowledge of new governmental standards before
enactment,but also a role in helping shape those Financial Reporting
standards.
Weaver and Tidwell,L.L.P Page 28
Proposal for Independent Auditing Services Town of Westlake,Texas
wearer
Assurance-Tax•Advisory
Cost of Services Schedul ,
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 Pdce
0 :
Financial audit for the Town of
Westlake for the fiscal year $27,000 $27,675 $28,350 $29,050 $29,750
ending September 30
Financial audit for the Westlake
Academy for the fiscal year $12,500 $12,800 $13,100 $13,400 $13,750
ending August 31
Preparation of IRS Form 990 for
the Westlake Academy
Foundation for the fiscal year $500 $525 $550 $575 $600
ending August 31
Financial audit for the Westlake
Academy Foundation for the $3,500 $3,600 $3,700 $3,800 $3,900
fiscal year ending August 31
Financial audit for Texas Student
Housing Authority for the fiscal $5,000 $5,125 $5,250 $5,375 $5,500
year ending August 31
Financial audit for Texas Student
Housing Authority, Ballpark $10,000 $10,250 $10,500 $10,750 $11,000
Austin Project,for the fiscal year
ending August 31
Financial audit for Texas Student
Housing Authority,the Ridge at $10,000 $10,250 $10,500 $10,750 $11,000
North Texas Project,for the fiscal
year ending August 31
Financial audit for Texas Student
Housing Authority,Town Lake $10,000 $10,250 $10,500 $10,750 $11,000
Austin Project,for the fiscal year
ending August 31
Financial audit for Texas Student
Housing Authority,College $10,000 $10,250 $10,500 $10,750 $11,000
Station Project,for the fiscal year
ending August 31
TOTAL $88,500 $90,725 $92,950 $95,200 $97,500
Weaver and Tidwell, L.L.P Page 29
Proposal for Independent Auditing Services Town of Westlake,Texas
weavel
Our Wtstm nit In the Ectgagement
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.
00t-of-Pocket I1xp*mis
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 30
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
ilS±iiJ'iJt)i; Ir7X•,4 t7 iii S:li
Appendix
Engagement Team Resumes
Weaver and Tidwell,L.L.P Page 31
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver>o_
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 Town of Little Elm
• City of Azle Town of Trophy Club
• City of Carrollton Town of Westlake
• City of Crowley Birdville ISD
• City of Desoto Carrollton-Farmers Branch ISD
• City of Denton Fort Worth ISD
• City of Duncanville Duncanville ISD
• City of Frisco Highland Park ISD
• City of Grand Prairie Hurst-Euless-Bedford ISD
• City of Greenville Irving ISD
• City of Haltom City Lancaster ISD
• City of Highland Village Lewisville ISD
• City of Killeen Mansfield ISD
• City of Lancaster Mesquite ISD
• City of Lewisville Richardson ISD
• City of McKinney Plano ISD
• City of Rockwall North Central Texas Council of Governments
• City of Rowlett Central Texas Council of Governments
• City of Sachse Central Texas Workforce Development
• City of University Park Board
• Town of Addison Greenville Electric Utility
• Town of Highland Park Texas Municipal Power Agency
Weaver and Tidwell,L.L.P Page 32
Proposal for Independent Auditing Services Town of Westlake,Texas
e v
A.swrance-fax•Advisory
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 33
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver>o-
Asiun-infe.
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 34
Proposal for Independent Auditing Services Town of Westlake,Texas
weave•
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 35
Proposal for Independent Auditing Services Town of Westlake,Texas
weave- r�>
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 Auditing 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 36
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
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 37
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver.
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)
• Member, Nonprofit Organizations Conference committee
• 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 38
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
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 39
Proposal for Independent Auditing Services Town of Westlake,Texas
weaver
Assurance•rnx•Advisory
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
Weaver and Tidwell,L.L.P Page 40
Proposal for Independent Auditing Services Town of Westlake,Texas
weave re-
August 15, 2014 "C U O L1 7 COPY
I I
To the Board of Directors
Westlake Academy Foundation
2600 JT Ottinger Road
Westlake, Texas 76262
We are pleased to confirm our understanding of the services we are to provide for Westlake
Academy Foundation for the year ended August 31, 2014.
We will audit the financial statements of Westlake Academy Foundation (the Foundation), which
comprise the statement of financial position as of August 31, 2014,the related statements of
activities, functional expenses and cash flows for the year then ended, and the related notes to the
financial statements.
We will also prepare the Foundation's federal information return for the year ended August 31,
2014.
Audit Objective
The objective of our audit is the expression of an opinion about whether your financial
statements are fairly presented, in all material respects, in conformity with U.S. generally
accepted accounting principles. Our audit will be conducted in accordance with auditing
standards generally accepted in the United States of America and will include tests of your
accounting records and other procedures we consider necessary to enable us to express such an
opinion. We cannot provide assurance that an unmodified opinion will be expressed.
Circumstances may arise in which it is necessary for us to modify our opinion or add an
emphasis-of-matter or other-matter paragraph. If our opinion is other than unmodified, we will
discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit
or are unable to form or have not formed an opinion, we may decline to express an opinion or to
issue a report as a result of this engagement.
Audit Procedures
Our procedures will include tests of documentary evidence supporting the transactions recorded
in the accounts, tests of the physical existence of inventories, and direct confirmation of
receivables and certain assets and liabilities by correspondence with selected individuals, funding
sources, creditors, and financial institutions. We will also request written representations from
the Foundation's attorneys as part of the engagement, and they may bill you for responding to
this inquiry. At the conclusion of our audit, we will require certain written representations from
you about the financial statements and related matters.
AN INDEPENDENT WEAVER AND TIDWELL LLP DALLAS
MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 12221 MERIT DRIVE,SUITE 1400,DALLAS,TX 75251 Res WA 14-13
INTERNATIONAL WWW.WEAVERLLP.COM P:(972)490 1970 F.(972)702 8321
Westlake Academy
August 15, 2014
Page 2
Audit Objectives
The objective of our audit is the expression of opinions as to whether your basic financial
statements are fairly presented, in all material respects, in conformity with U.S. generally
accepted accounting principles and to report on the fairness of the supplementary information
referred to in the second paragraph when considered in relation to the financial statements as a
whole. Our audit will be conducted in accordance with auditing standards generally accepted in
the United States of America and the standards for financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States, and will include
tests of the accounting records of the Academy and other procedures we consider necessary to
enable us to express such opinions. We cannot provide assurance that unmodified opinions will
be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or
add emphasis of matter or other matter paragraphs. If our opinions on the financial statements are
other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we
are unable to complete the audit or are unable to form or have not formed opinions,we may
decline to express opinions or to issue a report as a result of this engagement.
We will also provide a report(that does not include an opinion) on internal control related to the
financial statements and compliance with the provisions of laws, regulations, contracts, and grant
agreements, noncompliance with which could have a material effect on the financial statements
as required by Government Auditing Standards. The reports on internal control and compliance
will each include a paragraph that states that the purpose of the report is solely to describe the
scope of testing of internal control over financial reporting and compliance, and the result of that
testing, and not to provide an opinion on the effectiveness of internal control over financial
reporting or on compliance, and that the report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering internal control over financial
reporting and compliance. The paragraph will also state that the report is not suitable for any
other purpose. If during our audit we become aware that the Academy is subject to an audit
requirement that is not encompassed in the terms of this engagement, we will communicate to
management and those charged with governance that an audit in accordance with U.S. generally
accepted auditing standards and the standards for financial audits contained in Government
Auditing Standards may not satisfy the relevant legal,regulatory, or contractual requirements.
Management Responsibilities
Management is responsible for the basic financial statements and all accompanying information
as well as all representations contained therein. As part of the audit, we will assist with
preparation of your financial statements and related notes.
Westlake Academy
August 15, 2014
Page 3
You will be required to acknowledge in the written representation letter our assistance with
preparation of the financial statements and that you have reviewed and approved the financial
statements and related notes prior to their issuance and have accepted responsibility for them.
You agree to assume all management responsibilities for any non-audit services we provide;
oversee the services by designating an individual, preferably from senior management, who
possesses suitable skill,knowledge, or experience; evaluate the adequacy and results of those
services, and accept responsibility for them.
Management is responsible for establishing and maintaining effective internal controls, including
evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives
are met; for the selection and application of accounting principles; and for the preparation and
fair presentation of the financial statements in conformity with U.S. generally accepted
accounting principles.
Management is also responsible for making all financial records and related information
available to us and for ensuring that management is reliable and financial information is reliable
and properly recorded. You are also responsible for providing us with (1) access to all
information of which you are aware that is relevant to the preparation and fair presentation of the
financial statements, (2) additional information that we may request for the purpose of the audit,
and (3)unrestricted access to persons within the government from whom we determine it
necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatements
and for confirming to us in the written representation letter that the effects of any uncorrected
misstatements aggregated by us during the current engagement and pertaining to the latest period
presented are immaterial, both individually and in the aggregate,to the financial statements taken
as a whole.
You are responsible for the design and implementation of programs and controls to prevent and
detect fraud, and for informing us about all known or suspected fraud affecting the government
involving(1) management, (2) employees who have significant roles in internal control, and (3)
others where the fraud could have a material effect on the financial statements.
Your responsibilities include informing us of your knowledge of any allegations of fraud or
suspected fraud affecting the government received in communications from employees, former
employees, grantors, regulators, or others. In addition, you are responsible for identifying and
ensuring that the entity complies with applicable laws, regulations, contracts, agreements, and
grants for taking timely and-appropriate steps to remedy any fraud, violations of contracts or
grant agreements, or abuse that we may report.
Westlake Academy
August 15,2014
Page 4
You are responsible for the preparation of the supplementary information in conformity with U.S.
generally accepted accounting principles. You agree to include our report on the supplementary
information in any document that contains and indicates that we have reported on the
supplementary information. You also agree to include the audited financial statements with any
presentation of the supplementary information that includes our report thereon or make the
audited financial statements readily available to users of the supplementary information no later
than the date the supplementary information is issued with our report thereon. Your
responsibilities include acknowledging to us in the written representation letter that(1)you are
responsible for presentation of the supplementary information in accordance with GAAP; (2) that
you believe the supplementary information, including its form and content, is fairly presented in
accordance with GAAP; (3)that the methods of measurement or presentation have not changed
from those used in the prior period(or, if they have changed,the reasons for such changes); and
(4) you have disclosed to us any significant assumptions or interpretations underlying the
measurement or presentation of the supplementary information.
Management is responsible for establishing and maintaining a process for tracking the status of
audit findings and recommendations. Management is also responsible for identifying for us
previous financial audits, attestation engagements,performance audits or other studies related to
the objectives discussed in the Audit Objectives section of this letter. This responsibility includes
relaying to us corrective actions taken to address significant findings and recommendations
resulting from those audits, attestation engagements, performance audits, or other studies. You
are also responsible for providing management's views on our current findings, conclusions, and
recommendations, as well as your planned corrective actions, for the report, and for the timing
and format for providing that information.
During the course of our engagement,we will request information and explanations from
management regarding the Academy's operations,internal controls,future plans, specific
transactions and accounting systems and procedures. At the conclusion of our engagement,we will
require, as a precondition to the issuance of our report,that management provide certain
representations in a written representation letter. The Academy agrees that as a condition of our
engagement to perform an audit,that management will,to the best of its knowledge and belief,be
truthful,accurate and complete in all representations made to us during the course of the audit and
in the written representation letter. The procedures we perform in our engagement and the
conclusions we reach as a basis for our report will be heavily influenced by the written and oral
representations that we receive from management.False or misleading representations could cause
us to expend unnecessary efforts in the audit;or, worse, could cause a material error or a fraud to go
undetected by our procedures. Thus,the Academy agrees that we will not be liable for any damages
or otherwise responsible for any misstatements in the Academy's financial statements that we may
fail to detect as a result of false or misleading representations that are made to us by management.
Westlake Academy
August 15, 2014
Page 5
Moreover,the Academy agrees to indemnify and hold us harmless from any claims and liabilities,
including reasonable attorneys' fees,expert fees and costs of investigation and defense, arising out
of or related to this engagement if false or misleading representations are made to us by any member
of the Academy's management.
Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements; therefore, our audit will involve judgment about the number of
transactions to be examined and the areas to be tested. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements. We will plan and perform the audit to obtain reasonable rather than absolute
assurance about whether the financial statements are free of material misstatement, whether from
(1) errors, (2) fraudulent financial reporting, (3)misappropriation of assets, or(4) violations of
laws or governmental regulations that are attributable to the entity or to acts by management or
employees acting on behalf of the entity. Because the determination of abuse is subjective,
Government Auditing Standards do not expect auditors to provide reasonable assurance of
detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal
control, and because we will not perform a detailed examination of all transactions, there is a risk
that material misstatements may exist and not be detected by us, even though the audit is
properly planned and performed in accordance with U.S. generally accepted auditing standards
and Government Auditing Standards. In addition, an audit is not designed to detect immaterial
misstatements or violations of laws or governmental regulations that do not have a direct and
material effect on the financial statements. However,we will inform the appropriate level of
management of any material errors or any fraudulent financial reporting or misappropriation of
assets that come to our attention.
We will also inform the appropriate level of management of any violations of laws or
governmental regulations that come to our attention,unless clearly inconsequential. Our
responsibility as auditors is limited to the period covered by our audit and does not extend to
later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded
in the accounts, and may include tests of the physical existence of inventories, and direct
confirmation of receivables and certain other assets and liabilities by correspondence with
selected individuals, funding sources, creditors, and financial institutions.
Westlake Academy
August 15, 2014
Page 6
We will request written representations from your attorneys as part of the engagement, and they
may bill you for responding to this inquiry. At the conclusion of our audit, we will require
certain written representations from you about the financial statements and related matters.
Audit Procedures—Internal Controls
Our audit will include obtaining an understanding of the entity and its environment, including
internal control, sufficient to assess the risks of material misstatement of the financial statements
and to design the nature, timing, and extent of further audit procedures. Tests of controls may be
performed to test the effectiveness of certain controls that we consider relevant to preventing and
detecting errors and fraud that are material to the financial statements and to preventing and
detecting misstatements resulting from illegal acts and other noncompliance matters that have a
direct and material effect on the financial statements. Our tests, if performed,will be less in
scope than would be necessary to render an opinion on internal control and, accordingly,no
opinion will be expressed in our report on internal control issued pursuant to Government
Auditing Standards.
An audit is not designed to provide assurance on internal control or to identify significant
deficiencies or material weaknesses. However, during the audit,we will communicate to
management and those charged with governance internal control related matters that are required
to be communicated under AICPA professional standards and Government Auditing Standards.
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of
material misstatement, we will perform tests of the Academy's compliance with the provisions of
applicable laws, regulations, contracts, agreements, and grants. However, the objective of our
audit will not be to provide an opinion on overall compliance and we will not express such an
opinion in our report on compliance issued pursuant to Government Auditing Standards.
Engagement Administration, Fees, and Other
We understand that your employees will prepare all cash or other confirmations we request and
will locate any documents selected by us for testing.
Both of us agree that any dispute between you and Weaver and Tidwell,L.L.P., arising from the
engagement,this agreement, or the breach of it,may,if negotiations and other discussion fail,be
first submitted to mediation in accordance with the provisions of the Commercial Mediation
Rules of the American Arbitration Association(AAA)then in effect.
Westlake Academy
August 15, 2014
Page 7
Both of us agree to conduct any mediation in good faith and make reasonable efforts to resolve any
dispute by mediation.Mediation is not a pre-condition to the arbitration provided for below and the
failure or refusal by either parry to request or participate in mediation shall not preclude the right of
either parry to initiate arbitration. We agree to conduct the mediation in Dallas,Texas,or another
mutually agreed upon location.
Both of us agree that any dispute arising from the engagement,this agreement or the breach of it
shall be subject to binding arbitration under the provisions of the Federal Arbitration Act(9 U.S.C.
§ 1, et seq.) and of the Dispute Resolution Rules for Professional Accounting and Related Services
Disputes of the AAA(the Rules), and judgment on the award rendered by the arbitrator may be
entered in any court of competent jurisdiction. The arbitration shall be heard before one or more
arbitrators selected in accordance with the Rules.The parties agree to conduct the arbitration in
Dallas,Texas, or another mutually agreed upon location. The arbitrator may only award direct
damages and may not award consequential,exemplary, or punitive damages. The prevailing parry
in any arbitration or litigation shall be entitled to recover from the other parry reasonable attorneys'
and expert witness fees, court costs, and the administrative costs,arbitrator's fees, and expenses of
the AAA incurred in the arbitration or litigation in addition to any other relief that may be awarded.
Notwithstanding the provisions of the immediately preceding paragraph, neither of us shall be
compelled to arbitrate any dispute between us which arises out of any claim asserted against either
of us by a third parry,unless the third parry(whether one or more) agrees to join the arbitration or
can be compelled to join it.
If any term of this engagement letter is declared illegal,unenforceable,or unconscionable,that term
shall be severed and the remaining terms of the engagement letter shall remain in force. Both of us
agree that the arbitrator(s)or Court, as the case may be, should modify any term declared to be
illegal,unenforceable,or unconscionable in a manner that will retain the intended term as closely as
possible.
If a dispute arising from the engagement or from this agreement or any term of it or any alleged
breach of it is submitted to a Court for interpretation or adjudication,both of us irrevocably waive
right to trial by jury and agree that the provisions of this engagement letter regarding damages,
attorneys' fees,and expenses shall be applied and enforced by the Court.
In the unlikely event that circumstances occur which we in our sole discretion believe could create a
conflict with either the ethical standards of our firm or the ethical standards of our profession in
continuing our engagement,we may suspend our services until a satisfactory resolution can be
achieved or we may resign from the engagement. We will notify you of such conflict as soon as
practicable, and will discuss with you any possible means of resolving them prior to suspending our
services.
Westlake Academy
August 15, 2014
Page 8
We will provide copies of our reports to the Academy; however,management is responsible for
distribution of the reports and the financial statements. Unless restricted by law or regulation, or
containing privileged and confidential information, copies of our reports are to be made available
for public inspection.
The audit documentation for this engagement is the property of Weaver and Tidwell, L.L.P. and
constitutes confidential information. However,pursuant to authority given by law or regulation,
we may be requested to make certain audit documentation available to the Academy or its
designee, a federal agency providing direct or indirect funding, or the U.S. Government
Accountability Office for purposes of a quality review of the audit,to resolve audit findings, or
to carry out oversight responsibilities. We will notify you of any such request. If requested,
access to such audit documentation will be provided under the supervision of Weaver and
Tidwell, L.L.P. personnel. Furthermore, upon request, we may provide copies of selected audit
documentation to the aforementioned parties. These parties may intend, or decide, to distribute
the copies or information contained therein to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years after
the report release date or for any additional period requested by the Academy. If we are aware
that a federal awarding agency or auditee is contesting an audit finding, we will contact the
party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.
Mr. Jerry Gaither is the engagement partner and is responsible for supervising the engagement and
signing the report on behalf of Weaver and Tidwell, L.L.P. We expect to begin our audit on
approximately October 13, 2014 and to issue our reports no later than January 12, 2015.
Our fee is based upon the complexity of the work to be performed and the tasks required. Fees
for our services are due upon receipt of our invoice. For bills not paid within 60 days of the
billing date, a late charge will be added to the outstanding balance. The late charge will be
assessed at .5% on the unpaid balance per month.
Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as
report reproduction,word processing,postage,travel, copies, telephone, etc.) except that we
agree that our gross fee, including expenses, will not exceed $12,500. Our standard hourly rates
vary according to the degree of responsibility involved and the experience level of the personnel
assigned to your audit. Our invoices for these fees will be rendered each month as work
progresses and are payable on presentation. In accordance with our firm policies, work may be
suspended if your account becomes 60 days or more overdue and may not be resumed until your
account is paid in full. If we elect to terminate our services for nonpayment, our engagement will
be deemed to have been completed upon written notification of termination, even if we have not
completed our report.
Westlake Academy
August 15, 2014
Page 9
You will be obligated to compensate us for all time expended and to reimburse us for all out-of-
pocket costs through the date of termination. The above fee is based on anticipated cooperation
from your personnel and the assumption that unexpected circumstances will not be encountered
during the audit. If significant additional time is necessary, we will discuss it with you and arrive
at a new fee estimate before we incur the additional costs.
We will issue a written report upon completion of our audit of the Academy's financial
statements. Our report will be addressed to the Board of Trustees of the Academy. We cannot
provide assurance that an unmodified opinion will be expressed. Circumstances may arise in
which it is necessary for us to modify our opinion, add an emphasis-of-matter or other-matter
paragraph(s), or withdraw from the engagement.
Government Auditing Standards require that we provide you with a copy of our most recent
external peer review report and any letter of comment, and any subsequent peer review reports
and letters of comment received during the period of the contract. Our 2013 peer review report
accompanies this letter.
If you intend to publish or otherwise reproduce the financial statements and make reference to
our firm name, you agree to provide us with a copy of the final reproduced material for our
approval before it is distributed.
We appreciate the opportunity to be of service to the Academy and believe this letter accurately
summarizes the significant terms of our engagement. If you have any questions, please let us
know. If you agree with the terms of our engagement as described in this letter,please sign the
enclosed copy and return it to us.
Yours truly,
WEAVER AND TIDWELL, L.L.P.
3LG:pe1
Westlake Academy
August 15, 2014
Page 10
RESPONSE:
This letter correctly sets forth the understanding of Westlake Academy
Officer signature
Title
Date
EideBailly
CFAs&BUSINESS ADVISORS
System Review Report
October 4,2013
To the Partners of Weaver and Tidwell,L.L.P.
and the National Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Weave and Tidwell,
L.L.P. (the firm)applicable to non-SEC issuers in effect for the year ended May 31, 2013. Our peer review was
conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the
Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review,we
considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures.
The firm is responsible for designing a system of quality control and complying with it to provide the firm with
reasonable assurance of performing and reporting in conformity with applicable professional standards in all
material respects. Our responsibility is to express an opinion on the design of the system of quality control and the
firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures
performed in a System Review are described in the standards at www.aicpa.org/prsummarY.
As required by the standards,engagements selected for review included engagements performed under
Government Auditing Standards; audits of employee benefit plans, audits performed under FDICIA,and
examinations of service organizations(Service Organizations Control (SOC) 1 and 2 engagements).
In our opinion,the system of quality control for the accounting and auditing practice of Weaver and Tidwell,
L.L.P. applicable to non-SEC issuers in effect for the year ended May 31,2013,has been suitably designed and
complied with to provide the firm with reasonable assurance of performing and reporting in conformity with
applicable professional standards in all material respects. Firms can receive a rating ofpass,pass with
deficiency(ies) or fail. Weaver and Tidwell,L.L.P. has received a peer review rating of pass.
Eide Bailly LLP
www.eidebailly.com
800 Nicollet Mall,Ste.1300 1:, Minneapolis,MN 55402-7033 1 T 612.253.6500 1 F 612.253.6600 1 EOE
w. e e r
►►CM OW COPY11
August 15, 2014
The Board of Trustees
Westlake Academy
2600 JT Ottinger Road
Westlake, Texas 76262
We are pleased to confirm our understanding of the services we are to provide the Westlake
Academy (the Academy) for the year ended August 31, 2014. We will audit the financial
statements of the governmental activities,the discretely presented component unit, each major
fund, and the aggregate remaining fund information including the related notes to the financial
statements,which collectively comprise the basic financial statements of the Academy as of and
for the year ended August 31, 2014. Accounting standards generally accepted in the United
States of America provide for certain required supplementary information(RSI), such as
management's discussion and analysis (MD&A),to supplement the Academy's basic financial
statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. As part of our engagement, we will apply certain limited
procedures to the Academy's RSI in accordance with auditing standards generally accepted in
the United States of America. These limited procedures will consist of inquiries of management
regarding the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We will not
express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance. The
following RSI is required by generally accepted accounting principles and will be subjected to
certain limited procedures, but will not be audited:
1) Management's Discussion and Analysis
2) General Fund Budgetary Comparison Schedule
We have also been engaged to report on supplementary information other than RSI that
accompanies the Academy's financial statements. We will subject the following supplementary
information to the auditing procedures applied in our audit of the financial statements and certain
additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America and will provide an opinion on it in
relation to the financial statements as a whole:
1) Combining Statements
AN INDEPENDENT WEAVER AND TIDWELL LLP DALLAS
MEMBER OF BAKER TILLY CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS 12221 MERIT DRIVE,SUITE 1400,DALLAS,TX 75251 Res WA 14-13
INTERNATIONAL WWW.WEAVERLLP.COM P:(972)490 1970 F:(972)702 8321
Westlake Academy Foundation
August 15, 2014
Page 2
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements; therefore, our audit will involve judgment about the number of
transactions to be examined and the areas to be tested. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements. We will plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement,whether from(1) errors, (2) fraudulent
financial reporting, (3) misappropriation of assets, or(4)violations of laws or governmental
regulations that are attributable to the Foundation or to acts by management or employees acting
on behalf of the Foundation.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal
control, and because we will not perform a detailed examination of all transactions,there is a risk
that material misstatements may exist and not be detected by us, even though the audit is
properly planned and performed in accordance with U.S. generally accepted auditing standards.
In addition, an audit is not designed to detect immaterial misstatements or violations of laws or
governmental regulations that do not have a direct and material effect on the financial statements.
However, we will inform the appropriate level of management of any material errors, any
fraudulent financial reporting, or misappropriation of assets that comes to our attention. We will
also inform the appropriate level of management of any violations of laws or governmental
regulations that come to our attention, unless clearly inconsequential. Our responsibility as
auditors is limited to the period covered by our audit and does not extend to any later periods for
which we are not engaged as auditors.
Our audit will include obtaining an understanding of the Foundation and its environment,
including internal control, sufficient to assess the risks of material misstatement of the financial
statements and to design the nature,timing, and extent of further audit procedures. An audit is
not designed to provide assurance on internal control or to identify deficiencies in internal
control. However, during the audit,we will communicate to you and those charged with
governance internal control related matters that are required to be communicated under
professional standards.
Management Responsibilities
You are responsible for management decisions and functions; for designating an individual with
suitable skill,knowledge, or experience to oversee the tax services and any other nonattest
services we may provide; and for evaluating the adequacy and results of those services and
accepting responsibility for them.
Westlake Academy Foundation
August 15, 2014
Page 3
You are responsible for establishing and maintaining internal controls, including monitoring
ongoing activities; for the selection and application of accounting principles; and for the
preparation and fair presentation of the financial statements in conformity with U.S. generally
accepted accounting principles. You are also responsible for making all financial records and
related information available to us and for the accuracy and completeness of that information.
You are also responsible for providing us with (1) access to all information of which you are
aware that is relevant to the preparation and fair presentation of the financial statements, (2)
additional information that we may request for the purpose of the audit, and (3) unrestricted
access to persons within the Foundation from whom we determine it necessary to obtain audit
evidence. Your responsibilities include adjusting the financial statements to correct material
misstatements and confirming to us in the management representation letter that the effects of
any uncorrected misstatements aggregated by us during the current engagement and pertaining to
the latest period presented are immaterial,both individually and in the aggregate,to the financial
statements taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and
detect fraud, and for informing us about all known or suspected fraud affecting the Foundation
involving (1) management, (2) employees who have significant roles in internal control, and(3)
others where the fraud could have a material effect on the financial statements. Your
responsibilities include informing us of your knowledge of any allegations of fraud or suspected
fraud affecting the Foundation received in communications from employees, former employees,
grantors, regulators, or others. In addition, you are responsible for identifying and ensuring the
Foundation complies with applicable laws and regulations.
During the course of our engagement, we will request information and explanations from
management regarding the Foundation's operations, internal controls, future plans, specific
transactions and accounting systems and procedures. At the conclusion of our engagement, we
will require, as a precondition to the issuance of our report,that management provide certain
representations in a written representation letter. The Foundation agrees that as a condition of our
engagement to perform an audit,that management will,to the best of its knowledge and belief,
be truthful, accurate and complete in all representations made to us during the course of the audit
and in the written representation letter. The procedures we perform in our engagement and the
conclusions we reach as a basis for our report will be heavily influenced by the written and oral
representations that we receive from management. False or misleading representations could
cause us to expend unnecessary efforts in the audit; or,worse, could cause a material error or a
fraud to go undetected by our procedures. Thus, the Foundation agrees that we will not be liable
for any damages or otherwise responsible for any misstatements in the Foundation's financial
statements that we may fail to detect as a result of false or misleading representations that are
made to us by management.
Westlake Academy Foundation
August 15, 2014
Page 4
Moreover,the Foundation agrees to indemnify and hold us harmless from any claims and
liabilities, including reasonable attorneys' fees, expert fees and costs of investigation and defense,
arising out of or related to this engagement if false or misleading representations are made to us
by any member of the Foundation's management.
Engagement Administration,Fees, and Other
We understand that your employees will prepare all cash, accounts receivable, and other
confirmations we request and will locate any documents selected by us for testing.
Both of us agree that any dispute between you and Weaver and Tidwell,L.L.P., arising from the
engagement,this agreement, or the breach of it,may,if negotiations and other discussion fail,be
first submitted to mediation in accordance with the provisions of the Commercial Mediation
Rules of the American Arbitration Association(AAA)then in effect. Both of us agree to conduct
any mediation in good faith and make reasonable efforts to resolve any dispute by mediation.
Mediation is not a pre-condition to the arbitration provided for below and the failure or refusal by
either party to request or participate in mediation shall not preclude the right of either parry to
initiate arbitration. We agree to conduct the mediation in Dallas,Texas, or another mutually agreed
upon location.
Both of us agree that any dispute arising from the engagement,this agreement or the breach of it
shall be subject to binding arbitration under the provisions of the Federal Arbitration Act(9 U.S.C.
§ 1, et seq.)and of the Dispute Resolution Rules for Professional Accounting and Related Services
Disputes of the AAA(the Rules), and judgment on the award rendered by the arbitrator may be
entered in any court of competent jurisdiction. The arbitration shall be heard before one or more
arbitrators selected in accordance with the Rules. The parties agree to conduct the arbitration in
Dallas,Texas,or another mutually agreed upon location. The arbitrator may only award direct
damages and may not award consequential, exemplary, or punitive damages. The prevailing party
in any arbitration or litigation shall be entitled to recover from the other party reasonable attorneys'
and expert witness fees, court costs, and the administrative costs, arbitrator's fees, and expenses of
the AAA incurred in the arbitration or litigation in addition to any other relief that may be awarded.
Notwithstanding the provisions of the immediately preceding paragraph,neither of us shall be
compelled to arbitrate any dispute between us which arises out of any claim asserted against either
of us by a third party,unless the third party(whether one or more)agrees to join the arbitration or
can be compelled to join it.
Westlake Academy Foundation
August 15, 2014
Page 5
If any term of this engagement letter is declared illegal,unenforceable, or unconscionable,that term
shall be severed and the remaining terms of the engagement letter shall remain in force. Both of us
agree that the arbitrator(s)or Court,as the case may be, should modify any term declared to be
illegal,unenforceable,or unconscionable in a manner that will retain the intended term as closely as
possible.If a dispute arising from the engagement or from this agreement or any term of it or any
alleged breach of it is submitted to a Court for interpretation or adjudication,both of us irrevocably
waive right to trial by jury and agree that the provisions of this engagement letter regarding damages,
attorneys' fees,and expenses shall be applied and enforced by the Court.
In the unlikely event that circumstances occur which we in our sole discretion believe could create a
conflict with either the ethical standards of our firm or the ethical standards of our profession in
continuing our engagement,we may suspend our services until a satisfactory resolution can be
achieved or we may resign from the engagement. We will notify you of such conflict as soon as
practicable,and will discuss with you any possible means of resolving them prior to suspending our
services.
Mr. Jerry Gaither is the engagement partner and is responsible for supervising the engagement
and signing the report on behalf of Weaver and Tidwell, L.L.P.
Our fee is based upon the complexity of the work to be performed and the tasks required. Fees
for our services are due upon receipt of our invoice. For bills not paid within 60 days of the
billing date, a late charge will be added to the outstanding balance. The late charge will be
assessed at .5% on the unpaid balance per month.
We estimate that our fees for these services will be $4,000 ($3,500 for the audit and $500 for the
preparation of Form 990). The fee estimate is based on anticipated cooperation from your
personnel and the assumption that unexpected circumstances will not be encountered during the
engagement. If significant additional time is necessary, we will discuss it with you and arrive at a
new fee estimate before we incur the additional costs. Our invoices for these fees will be
rendered each month as work progresses and are payable on presentation. In accordance with
our firm policies, work may be suspended if your account becomes 60 days or more overdue and
may not be resumed until your account is paid in full. If we elect to terminate our services for
nonpayment, our engagement will be deemed to have been completed upon written notification
of termination, even if we have not completed our reports. You will be obligated to compensate
us for all time expended and to reimburse us for all out-of-pocket costs through the date of
termination.
Westlake Academy Foundation
August 15, 2014
Page 6
We will issue a written report upon completion of our audit of the Foundation's financial
statements. Our report will be addressed to the board of directors of the Foundation. We cannot
provide assurance that an unmodified opinion will be expressed. Circumstances may arise in
which it is necessary for us to modify our opinion, add an emphasis-of-matter or other-matter
paragraph(s), or withdraw from the engagement.
If you intend to publish or otherwise reproduce the financial statements and make reference to
our firm name, you agree to provide us with a copy of the final reproduced material for our
approval before it is distributed.
We appreciate the opportunity to be of service to you and believe this letter accurately
summarizes the significant terms of our engagement. If you have any questions, please let us
know. If you agree with the terms of our engagement as described in this letter, please sign the
enclosed copy and return it to us.
Yours truly,
WEAVER AND TIDWELL,L.L.P.
JLG:res
RESPONSE:
This letter correctly sets forth the understanding of Westlake Academy Foundation
Officer signature `
Title 2- c
Date 1A t