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Home My WebLink AboutRes 2016-08-217 BrooksCardiel Audit ServicesRESOLUTION J I I =10111 11:11 :4111110111 Ceff-Alkly-Alto WMIT11:11ill d;L6j MA-111 NJ I &I =1 Nkyj Lei =61M 111 1 0 WHEREAS, Section 7.18 of the Anna Home Rule Charter (the "Charter") states no more than 5 consecutive annual audits may be completed by the same firm; and WHEREAS, the annual audits for FY 2011 through FY2015 have been completed by the same firm; and WHEREAS, the City of Anna, Texas (the "City") has issued a new request for proposals (RFP) for financial audit services; and WHEREAS, City staff, after reviewing the proposals submitted in response to the RFP, believes that an agreement with BrooksCardiel, PLLC would provide the best value to the City; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS THAT: Section 1. Recitals Incorporated. The recitals set forth above are incorporated herein for all purposes as if set forth in full. Section 2. Authorization The Council hereby authorizes the City Manager to negotiate and execute a professional services agreement with BrooksCardiel, PLLC for audit services in accordance with the proposal from BrooksCardiel, PLLC attached hereto as Exhibit 1. The City Manager is further authorized to execute all documents and to take all other actions necessary to finalize, act under, and enforce the agreement. PASSED AND APPROVED by the City Council of the City of Anna, Texas on this 9th day of August, 2016. ATTEST: APPROVED. City Secretary Carrie L. SmitV Mike Crist Zl; Z3 PAGE I OF I 0 Exhibit I City of Anna, Texas Presented by BrooksCardiel, PLLC 1095 Evergreen Circle, Suite 200 The Woodlands, TX 77380 Telephone: 281-907-8788 Contact: Michael Brooks, CPA MBrooks@BrooksCardiel.com h 13 0 'jp� y A C -,BROOKS(('-'-"1-AA ULC ------- Certified Public Accountants 06,30.2.016 Table og Contents Letterof Transmittal ............................................................................................................ ....... 3 Licenseto Practice ........................................................................................................................ 5 Statementof Independence .................................................................. ..................................... 6 FirmQualifications and Experience .......................................................................................... 7 QualityControl and Peer Review ............................................................................................ 12 SimilarEngagements and References ..................................................................................... 14 Partnerand Staff Background .................................................................................................. 15 Additional Services Rendered .................................................................................................. 18 SpecificAudit Approad-i .............................................................................. ............................ 19 CostBid ........................................................................................................................................ 26 2 BROOKS(( -,A1]RJ1,0 r , I �-A Certified Public Accountants City of Anna, Texas Ill N. Powell Parkway Anna, TX 75409 Dear City of Anna, 06,30.2016 1" 0 0 -L fi- Letter of Transmi L- a I On behalf of BrooksCardiel, PLLC, we are pleased to have the opportunity to submit the following proposal and provide professional auditing services to the City. As you will find, we are committed to exceeding our client's expectations and have prepared the following proposal to outline our experience and services to be provided. If selected to be the City's independent auditor for the years noted we will perform the work stated in the following proposal with those services conforming in all aspects to the requirements stated therein, BrooksCardiel, PLLC was created with the belief that audit services can be provided in a more efficient and cost effective manner by limiting the firm's staff to include only experienced professionals while leveraging the most recent technology. Our partners have extensive experience auditing governments of all sizes with a particular focus on cities similar to the City of Anna, Texas. We believe that we are the right choice to be the City's auditor for the following reasons; 0 Timeline — Our firm focuses solely on performirig audits and is not burdened with a tax season, which can often cause delays in the issuance of audit reports. Once we establish a timeframe for your audit, report delivery, and presentation, we honor our commitment. Our firm believes h-i working the hours necessary to serve our clients and meet the audit schedule as further detailed in this proposal. Experience - The partners of BrooksCardiel, PLLC have performed approximately 400 audit engagements of approxh-nately 100 different governmental entities. Our current clientele includes over 30 Cities in Texas. We understand the challenges 3 U J, 'fid I, 1� ��BROOKS'x--' Certified Public Accountants 06,30,M] 6 governmental entities face and developed our audit approach around these challenges. e Quality - Wl-ten you engage BrooksCardiel, PLLC, you know that experienced professionals are performing every step of the engagement and that you will have easy access to a decision maker within the firm at all times. No intems or recent college graduates will be performing your audit. Customer Service - Our customer service based audit approach has allowed us to form long lasting relationships with our clients that often extend well beyond the term of our initial engagement. Unlike larger firms, we pride ourselves on the ability to provide a personal and unique audit experience unmatched by our peers. The City will have direct access to our highest level of expertise throughout the term of the relationship; before, during, and after the audit is complete. Our total cost for the audit of the City for the year ended September 30" 2015 is $17,025. Please see cost bid section of this proposal (pg. 26) for more detail. Should you require a single audit, we will charge a flat rate of $2,500 for the audit of one major program, TI-Lis proposal is a firm and irrevocable offer ending 120 days subsequent to the date specified for opening the proposals. If you have any questions regarding this proposal please contact Michael Brooks at MBrooks@BrooksCardiel.com. Sincerely, Michael Brooks, CPA Audit Partner BrooksCardiel, PLLC 1095 Evergreen Circle, Suite 200 The Woodlands, TX 77380 (281) 907-8788 4 10 BROOKS"? I Certified Public Accountants 06.30,201-6 - 0 License to Practice The firm and all assigned key professional staff of BrooksCardiel, PLLC are properly licensed to practice in the State of Texas. 5 B"D ROOKS(( Certified Public Accountants 06.30,)016 ]Iw, endence p anatement o' The Texas State Board of Public Accountancy Rules of Professional Responsibility sec. 501.11 requires auditors to be independent in fact as well as appearance from each of their clients. BrooksCardiel maintains this independence under both Generally Accepted Auditing Standards as well as the U.S. General Accounting Office's Government Auditing Standards and has had no professional relationsItips with the City of Anna or its agencies within the past five years that would constitute a conflict of interest. 6 '',BROOKS(� Certified Public Accountants 003020 16 Florm Qual-ificatiton and Fj----'1,xpenence Firm Profile BrooksCardiel, PLLC was created with the belief that audit services can be provided efficiently wl-tile still being cost effective and maintained on a personal level. It is this conviction that sets us apart from our peers. While serving clients throughout Texas, we have performed on audits for numerous governments and have experienced the unique challenges each of our clients face. With an appreciation for these distinct issues, we approach every assignment with an individual view and adapt our methods to meet the specific needs of each of our clients. When you engage BrooksCardiel, PLLC, you can be confident that experienced professionals will perform each step of the audit process, giving you and your staff direct access to our highest level of expertise. We keep overhead low arid quality high by eliminating inexperienced staff and connecting the City directly to our partners. BrooksCardiel, PLLC is headquartered in the Woodlands, Texas. 11-ie City's assigned engagement team will consist of a lead partner, senior auditor, experienced audit associate and second partner, who will work both onsite, at the City's location, and at the firm headquarters for the duration of interim and final audit fieldwork. No staff auditors will be utilized on the City's engagement, P-t:iblic Sector arid Governmental Exl.-)erieti(--,e BrooksCardiel., PLLC has dedicated professionals knowledgeable fi-1 government accounting, audit and financial reporting. With numerous years of experience h-i the public sector, our auditors possess the knowledge and capability to support your government's auditing and assurance needs. Our support structure, resources and training are devoted to providing governments with accurate, prompt-, and efficient audits and financial related services, In addition, BrooksCardiel is a member of 7 WIll Certified Public Accountants 06,30,2016 ATCPA's Government Audit Quality Center wl-tich provides added support to our professionals through up-to-date training and resources. With an in depth knowledge of OMB A-133 audits, the latest GASB pronouncements, Comprehensive Annual Financial Reports and state and federal regulations we aim to provide each of our clien ' ts with the most efficient audit and long-term guidance possible. Our focus lies on exceptional customer service which we accomplish through accessibility, efficiency, quality and knowledge. Current governmental clientele include 32 cities, 24 economic development districts, 2 counties, and 13 water and special purpose districts. Systerns Capabilities BrooksCardiel, PLLC has the capability to audit computerized systems and does so where necessary. BrooksCardiel will sample computerized transactions, but will focus on source documents outside of the computerized system. Single Atidit (OMB Circular A-133) S All government and non-profit entities that spend more than $750,000 a year in federal funds are required by the Office of Management and Budget (OMB) to submit to an A- 133 audit. Our partners have extensive experience with (OMB) Circular A-133 and have performed yellow book and single audits for numerous governments on a variety of federal grant programs including,, funds received under the American Recovery and Reinvestment Act. ARRA funds include additional compliance requirements increasing the amount of data to be reported and analyzed. We will review the City's accounting records and determine the need for a single audit meeting the criteria noted above. As part of our single audit, we will evaluate the City's internal controls over grant compliance and the financial statements. We will develop a risk based audit program and determine if the City is meeting all compliance and f ft--iancial requirements associated with their federal grants. Once complete, we will assist the City with the submission of their single audit reporting package to the Federal Audit Clearinghouse or other required 8 Certified Public Accountants 06.30,2016 authoritative body. We will provide the City with a bound single audit report wl-dch will include our findings, schedule of expenditures of federal awards, and Auditor's opinion under Circular A-133, Governmental Auditing Standards. C'onti.-rr(-A-iRg -Professional Edticatio-n Each of our professionals are in compliance with the CPE requirements of the AICPA, Texas State Board of Public AccoLmtar-tcy and Generally Accepted Government Auditing Standards (Yellow Book). Each professional receives a mandatory 40 hours of continued education credits annually with at least 24 hours of governmental specific training biennially through the firm CPE program which is both internal and external. These CPE records are open to our clients for review and will be made available upon request. Client Assistance We recognize that a well-informed client is a better client. Therefore, our approach is to provide our clients with current accounting news, updates, and training over new pronouncements mid relevant financial activities. When new accounting guidance is issued, we will first inform you well in. advance of the effective date in order to provide enough time to plan for and accommodate any financial impact. Once adopted, we will work with you to assist in the preparation of any new financial policies and/or related journal entries. In addition we offer monthly CPE to our staff and our clients on relevant accounting topics. Our firm is higl-dy focused on customer service and make a point to respond to all client emails, phone calls and other iriquires h-i an expedited manner. It would be unusual not to receive a response within. the same day of the request being made, Partidj�)a-[Jort in Pro -essioj.-taJ Orp-arazalJons 0 We believe that it is essential to participate in professional organizations to stay abreast of industry trends and changes. Our firm's commitment to the public sector is evidenced Certified Public Accountants 06,30,2010 through our active participation/memberships in the following professional organizations: 0 AICPA -American Iristitute of Certified Public Accountants o AICPA - Government Audit Quality Center 0 TSCPA -Texas Society of Certified Public Accountants 0 ACFE -Association of Certified Fraud Examiners o GFOA -Government Finance Officers Association In addition, we are members of the GFOA Special Review Committee and encourage and assist local governments to go beyond the minimum requirement of generally accepted accounting principles. Certificate of Achievement for Excellence in Financial Reporting As members of the GFOA (Govert-tinent Finance Officers Association) Special Review Committee, we assist local governments in going beyond the minimum requirements of generally accepted accounting principles to achieve the Certificate of Achievement for Excellence in Financial Reporting. We understand the importance of this highly regarded award and will go to great lengths to work with the City to achieve this on an animal basis. The partners at BrooksCardiel, PLLC will prepare your CAFR and assist in the preparation of the City's response to all GFOA comments, if any. The following is a sample of current BrooksCardiel audit clients who have recently submitted a CAFR to the Certificate of Achievement Program of the GFOA: o City of Azle, Texas 0 City of Gonzales, Texas o City of Sachse, Texas o City of Denison, Texas 0 City of Heath, Texas 0 City of Lucas, Texas City of Taylor, Texas City of Sansom Parl<, Texas 10 Certified Public Accountants Services Offered Audit and assurance services include: • CAFR preparation • Yellow Book Audits • OMB A-133 Audits • Annual Financial Statement Audits • Franchise Tax Audits 06,")0.2010 • Hotel/Motel Tax Audits • Fraud Exami-nations/Investigations • Sales Tax Allocation Audits • GASB 54 tbrough 72 h-nplementation BROOKS(( V Certified Public Accountants 06,1310,2016 Quality (----',ontrol and Peer Review BrooksCardiel, PLLC participates in the Texas State Board of Public Accounting's peer review program. Firms can receive a rating of pass; pass with deficiency (ies) or fail. The firm underwent peer review according to the Statement on Quality Control Standards No. 8, A Firm's System of Quality Control, effective as of January 1, 2012 in March 2013. Brool<sCardiel, PLLC received the highest rating possible under the program. The System Review Report is located on the following page for your review. IV) /Ax,f;o I I I I !Ji I o-mh,i I I ��m !:Ia i!h"li �ilki� A, � SYNIel" Redew Repirl N,larch �. 2013 Vo the Partners o1*11rooks, Cal -did & Colllpall�. ITIA, And the Peer Review Conlinitlec ()I, 111C Socich, oI, CPAs \VC have (Ile SvsIcIll ol, quality Colill-ol 1,61. Ille acColllltillj� and atldililltl! I)I'aL'li(T 01' Bl'00k."'. Cordicl &- Company. Pl,I,C 011C Firm) in CITCC( 1,61. (lie ycar Clided Novcnibcr 30. 2012. ()ill- peer i,c\ ic\\ w-as coilduclCd ill accol-da lice will) the "Standard's 1`61- Perlorillimp, and Reportilij, oil I'm- Reviews, eslablislied b.\ the Peel. Review hoard ol'dic American inmiume ornimi We Acammm As pm-1 ()I' oul, peer review. we colisidClVd IVViC\VS I)N� I-CL1LII0(0I-\ cillitics. il,allplicabl(�. ill detcl-Ill i Ili ill(' natill,C and exient oI, our procc(IIII-cs. The iS I'C.SI)OIISil)IQ 1'01' LICSi3OI)iIq-,, a Sysicill of' qtlalil� control and complyino will) it to provide the Iii-Ill \\ill) reasonable assurance ()I' pCI-1,61-Illill", and reporting, ill conformity with applicable prolessiolml standards ill all material rcspcct,�, ()ill- wSponsibility is to expwss all opinion oil the dc'sign Ill' (lie System of' quality control and ill(! Ili-ili's compliance therewith ba!,'CLI Oil 0[11- I-CViC\V. 'I'11C Ilawl.c. ol�jec(ive". scopc. linlitalions ()I'. and (lie procedurcs pCI-1,61-illed in a "),ysicill Revieware descrilvd ill the S11,111daRIS 11 As required by (he Standards, clipapciuclits scicc(cd Cor I-c\ ic\\ included c1q,-'agoviliclits pci-lorilled undcl. Govel-11111C111 . htditil��Sluwhlrds and audits ol,elliployce bellel-11 111,111S., Ill 01,11- 011illiOn, the S�!StClll ol'(1tiality control 1,61. [lie accountillt, and alldilill!4 practice ol, l400ks. Cordid &, Conlpall�. PITC. in cl,Iccl lor (lie �car ended Novcinher 30. 2012. Ims lvcn suilaht dcduncd zind complied with to provide the with reasonable assurance ol, pel-1,61-Illing and repol-tillp ill collkwlllil� "Ali npMicaldc prol'essional slanh& in all nwicrial respect- Fil-Ills Call I-CCCiVC a I-alilIV 01'/41SA, I)ON 111111 deficiem,�I-Ocs) ol-fid/. lirooks, Cardicl &, Colullall�, PI,I,(, has receked a pecl. lv\ic\\ rating ol, p iss ,\Ccotllltill,(' and Uonstlllill� ,,BROOKS((_.,A_IF Certified Public Accountants 06.30.2016 C1 0 0 -11 D-imnar Engagements and References C"Orl., dential on Most , Yerus Gov't Name Type Recent CAFR Partners Principal Contact Served Audit Renita Bishop, CGFO Awarded Mike Brooks & Finance Director City of Azle Audit 3 9/30/2015 Prepared by Anthony Cardiel (817) 444-2541 BrooksCardiel rbishop@ci.azle.tx.us Rosemarie Dennis Awarded Mike Brooks & Finance Director City of Taylor Audit 4 9/30/2015 Prepared by Anthony Cardiel (512) 352-5997 BrooksCardiel rosemarie.dem-tis@taylortx.gov Jan Messman city of Pilot Awarded Anthony Cardiel Finance Director . Point Audit 2 9/30/2015 Prepared & Mike Brooks (940) 686-4M 8 BrooksCard'el jniessmanocityofpilotpoint.org Liz Extun Awarded City of Lucas Audit 1 09/30/2015 Prepared by Anthony Cardiel Finance Director & Mike Brooks (972) 912-1201 BrooksCardiel lexum@lucastexas.us Renne'Waggoner Awarded City of Denison Audit 2 09/30/2015 Prepared by Mike Brooks & Director of Finance Anthony Cardiel (903) 465-2720 BrooksCardiel rwaggoner@cityofdensioii.com Jolinna Boyd City of Parker Audit 4 09/30/2015 N/A Mike Brooks & Director of Finance Jon Watson (972) 442-6811 JBoyd 0(parkertexasms 14 Certified Public Accountants 06,30.),016 PartMer and Eitarff Backgro-iaind Mike Brooks, CPA Audit Partner Mbrool<s@Brool<sCardiel.com Mike began his career at a regional accounting firm that specializes in auditing governmental and not -for -profit entities. As part of the management team, Mike completed or assisted in the completion. of inn f,,, nv%n,"- 4- 1 A- - �4 14 _+ -_rtl Y bWV �L " "IL UX L FL V %_ %.1 0. Mike later joined a leading SEC auditing firm where he specialized in public sector clients, small -cap publicly traded companies and other complex accounting issues while leading the firm's public sector practice. Educational Background 11 Certified Public Accountant, State of Texas BBA in Accounting, Sam Houston State University Certified Six Sigma Greenbelt Experience 13 Over 10 years of private sector and public accounting experience 13 Completed or assisted with completion of approximately 200 public sector audits 13 Completed over 50 single audits in accordance with OMB Circular A-133 13 Implementation of GASB 54 through 72 Professional Organizations El Government Finance Officers Association * GFOA Special Review Committee * American Institute of CPAs (AICPA) 15 'BROOKS(( Certified Public Accountants 06,30,�)01() Anthony Cardiel, CPA, CFE Audit Partner Acardiel@BrooksCardiel.com IdAnthony began his career at a regional accounting firm based in Texas that specializes in auditing governmental and not -for -profit entities. His experience included governmental entities with over $250 million dollars in assets and revenues, sovereign nations, and an extensive list of cities., counties, and other governmental entities. Anthony later served as CFO for a leading oil and gas information company and brokerage. In past experience he acted as operations manager for UPS as well as for the United States Army. Educational Background Certified Public Accountant, State of Texas Certified Fraud Examiner., State of Texas BS hi Accounting, Northwest Missouri State University Experience Completed or assisted with the completion of approximately 150 public sector audits Completed over 30 single audits in accordance with OMB Circular A-133 Implementation of GASB 54 through 72 Professional Organizations M Government Finance Officers Association ul GFOA Special Review Committee Association of Certified Fraud Examfi-iers — Houston Chapter American Institute of CPAs (AICPA) Texas Society of Certified Public Accountants (TSCPA) 16 �x "�BROOKS((' -,A !") 11)) JI I ------- Certified Public Accountants 06.30.Ml 6 Louis Breedlove Audit Senior LBreedlove@13rooksCardiel,com Louis began his career at a regional accounting firm that specializes in auditing governmental and not -for -profit entities. Louis also has experience auditing public sector clients, small -cap publicly traded companies as well as large Fortmie 500 and international companies while employed at PriceWaterhouseCoopers. Educational Background 13 BBA in Accounting, Southwestern Assemblies of God University Exverience Over 5 years of private sector and public accounting experience5 Implementation of GASB 54 through 72 CPE — Yellow Book Compliant 17 „BROOKS(” Certified Pu�lic Accountants 00,30,2016 Additional Services Rendered Gov"t Name Type Engagement Date City of Forney Internal Control Engagement, Document 09/30/2013 Processes, Recommendations for Improvement Agreed Upon Procedures, Tax Office Internal Control Evaluation and Fraud Review 09/30/2012 Liberty County Agreed Upon Procedures, Attorney's Office 09/30/2013 Internal Control Evaluation and Fraud Review City of Lancaster Agreed Upon Procedures, Municipal Court 9/30/2014 Fraud & Interna-1 Control Review Gonzales Economic Agreed Upon Procedures, Economic 9/30/2015 Development Corporation Development Agreement Review City of Pilot Point Project Accounting Consulting — 9/30/2015 Recommendations for CIP software and process In �iBROOKS(( "'All"I"It,Y) Certified Public Accountants 06,30,2016 Specific . A� u dit.Approach Audit Segmentation and Staff Ho-ars Financial Audits Experienced Associate Audit Senior Partner Reviewing Partner Risk Assessment and Control Evaluation & Planning 10 hours 15 hours 15 hours 5 hours Cash 10 hours 5 hours 4 hours 2 hours Receivables & Revenues 10 hours 10 hours 5 hours 2 hours Capital Assets 10 hours 10 hours 5 hours 2 hours Accounts Payable & Expenditures 10 hours 10 hours 5 hours 2 hours Long -Term Liabilities 10 hours 15 hours 5 hours 2 hours Deferred Revenue 5 hours 5 hours 2 hours 1 hour CAFR Preparation 10 hours 20 hours 10 hours 5 hours Total Hours 237 hours K mowledge Based Audit Approach BrooksCardiel uses a knowledge -based audit methodology to efficiently and effectively perform financial statement audits of governmental entities in accordance with auditing standards generally accepted iri the United States of America (GAAS), This is accomplished by obtaining an understanding of the City and its environment to 19 -BROOKS((_ !A\_ Itt 111�,�A Certified Public Accountants 06,30.20'[6 sufficiently assess the risk of material misstatement. Audit procedures are then designed and performed in response to the risk of material misstatement. All audit procedures performed will be done so by the professionals of BrooksCardiel, PLLC who are dedicated to maintaining a presence throughout the audit process. Their goal in this is to reduce the burden on City staff while adhering to the established budget and timeline. These procedures are more fully detailed in the Audit Approach section of this proposal and will be conducted in accordance with the following standards: o Generally Accepted Auditing Standards established by the American Tnstitute of Certified Public Accountants. * Financial Audit Standards established by the General Accounting Office's Government Auditing Standards. * All provisions of the Single Audit Act and the U.S. Office of Management and Budget Circular (OMB) A-133 audits of states, local governments and not -for -profit organizations. Planninp_- 0 The planning phase involves developing the overall audit strategy for the expected activities, organization, and staffing of the audit. We will plan the audit to respond to the assessment of the risk of material misstatement based on our -understanding of the City, its environment, and internal controls. Our understanding of the City and its environment will include the following: • h-idustry, regulatory, and other external factors; • Nature of the City; • Objectives, strategies and related risks that may cause material misstatement of the financial statements; * Measurement and review of the City's financial performance; * Internal controls 20 H Certified Public Accountants 06,30.2016 Prior to our first day of field work, we will schedule a meeting to discuss the desired timeframe, estimated report delivery, and extent of management and auditor responsibilities as it relates to the audit. Internal Cantrol Evaluation Audit standards require that we obtain an understalidit-ig of the City sufficient to evaluate the design of the internal controls and to determine whether they have been implemented. Our understanding of the City's internal controls will include the control environment, risk assessment, information and communication systems, control activities, and monitoring controls. Our risk assessment and control evaluation will include: 0 Conducting interviews of selected management and staff, 0 Evaluatirig the City's financial reporting and management policies, budget documents and process, and informational systems; o Documenting our w-iderstanding of the City's entity wide control environment and activity level controls; 0 Testing the design and iinplementation of selected key controls by performing a walk-fl-irough of the selected transaction class; o Testing the operating effectiveness of selected controls. The results of our risk assessment will allow us to identify and assess the risk of material misstatement within the City and design the extent, nature, and timh-ig of our substantive audit procedures and develop our audit plan, Any control deficiencies identified during the planning phase and interim audit will be communicated to management immediately. Fieldwork --,ind Substantive Testing Based on the results of our risk assessment and internal control evaluation, a specific audit plait will be designed to focus expanded procedures on areas with the greatest risk of material misstatement, error, and fraud. We will use tests of details, substantive 21 - ----- Certified Public Accountants 06.30.20] 6 analytical procedures, or a combination of the two to conclude on the reasonableness of the given transaction class or account balance. Typical substantive procedures include: • Agreeing the financial statement elements to the underlying accounting records including year-end account balances and transaction activity occurring throughout the year; • Confirming cash held ha bank and investment accounts, accounts receivable, inventory held by others, and material grants; • Perform specific analytical procedures - considering historical trends and events within the City. and Sample Sizes The extent to which statistical sampling will be used and related sample sizes will be determined based on the results of our risk assessments. Electi,ortic Data Processing BrooRsCardiel, PLLC will utilize current tedu-tology to complete your audit. Electronic data processing will be used throughout the audit to extract data from your City's accounth-ig software. The data will be processed with our audit software to ensure the efficiency of your audit. A-r-talytical Procedures Analytical procedures will be used throughout the engagement in almost every aspect of the audit. Procedures will include comparing balances, activities and ratios to historical data, comparative entities, as well as local and regional trends. Coutpletim-t. At the conclusion of every audit, we will decide whether sufficient audit evidence has been accumulated to warrant the conclusion that the financial statements are fairly stated 22 Certified Public Accountants 06.302016 in accordance with generally accepted accounting principles (GAAP). Prior to issuing our audit report we will perform the following procedures: • Evaluate the sufficiency and appropriateness of audit evidence obtained; • Perform an overall analytical review; • Evaluate and conclude on the results of audit procedures, adjustments, and unadjusted misstatements; • Provide all adjusting entries noted during the audit to the City Council and management; • Prepare or assist in the preparation of the City's Comprehensive Annual Financial Report; • Commurticate any audit findings and issues with management and those charged with governance. Compliance with Laws and Regulations Approach to Compliance Testing Compliance with laws and regulations, including, but not limited to the Public Funds Investment Act, Texas State Government Code and grants received. Compliance testing will be performed as required by Circular A-133 and the Single Audit Act, grant agreements, f-ftiancing agreements, or any other compliance requirements as applicable. Exi-lectations from City Staff r We will expect the City to provide commonly requested schedules such as a schedule of receivables due at year end, a schedule of capital assets that includes additions and disposals, a schedule of cash accounts, a schedule of prepaid insurance and a long-term debt schedule as applicable. We will also expect assistance with the preparation of confirmations to banks, attorneys, debt holders, etc. 23 "A �BROOKS�O,( ---Certified Public Accountants 06,30.2016 Progress Meetings Prior to beginning fieldwork, BrooksCardiel will schedule an initial planning meeting with management to discuss the anticipated time frame, audit requests, and client involvement needed to accomplish our goal. During the fieldwork, we anticipate having additional meetings to discuss the audit progress to date, as needed. In addition, we will immediately schedule a consultation should unforeseen issues and audit findings come to our attention, Prior to the conclusion of the audit, we will provide management a copy of any draft findings and welcome client feedback before final issuance of our report and management letter. Identification of Anticivmted Potenhal Audit Probleirts We do not anticipate any potential audit problems during our proposed engagement. Quality Control Procedures Every audit engagement undergoes an initial partner and second partner review process. We have structured our firm around audit quality and take great pride fi-I our ability to offer our clients accurate, efficient, and timely audits. We do not employ any staff auditors. Your audit will be performed by an audit partner and a directly supervised audit senior. With this approach, we are able to minimize mistakes, address issues immediately, and give our clients access to the most experienced personnel in our firm, should they have any questions or concerns. Prior to issuance, our clients are provided with the draft financial report and letters for review. 24 BROOKS(� t )NH Certified Public �ccountants 0 6. 3 0-2 0 J 6 Proposed Timeline . Financial Statement Audits Proposed scheduling Interim Audit Work Concluded Prior to August 31 of each year. Development of an audit plan and PBC schedules Prior to September 30 of each year. Audit Field Work November/Deceniber of each year, Draft Reports and Management Letter Prior to January 31 of each year. Final Reports and Management Letter Prior to February 28 of each year. Final Presentation to City Council March Council meeting each year. Submission of CAFR to the GFOA Immediately following Council Presentation. 25 D"' Certified Public Accountants 0 6. "30. 2 01- 6 f-3 -10, Total -All-Inclusive Maximum Price Name of Firm: BrooksCardiel, PLLC Certification that the person signing this proposal is entitled to represent the Firm and authorized to sign a contract with the City of Anna, Texas, So Certified, Name: —Michael Brooks, CPA Title: Partner Signature: Total all-inclusive maximum fees for: Fiscal Year Financial Statement Audit 2016 $17,025 2017 $17,325 26 �)BROOKS(" Certified Public Accountants 06,30.2016 �-1 L_JCh.ed-u)Je of PJR)fesslotw�.J 11 tic-_�es and ertses P We understand that cost is not the only factor considered when making your auditor selection but we also understand the budgetary constraints affecting most governments during the current economic environment. As you are aware, we see the City of Anna as an important client and one that we would like to do business with into the future. As such, we will offer unlimited teclu-tical assistance and guidance at no cost throughout the year. Die fee below includes the financial statement of the City of Anna, preparation of the CAFR, & unlimited technical assistance throughout the year. Experienced Reviewing Finimcial Audit Audit Senior Partner TOTAL Associate Partner Risk Assessment and Control Evaluation Cash Revenues & Receivables Capital Assets Accourtts Payable & Expenditures Long-term Liabilities, Including Pensions Deferred Revenue CAFR Preparation Quoted hourly rates Extended fees at quoted 10 15 15 5 45 10 5 4 2 21 10 10 5 2 27 10 10 5 2 27 10 10 5 2 27 10 15 5 2 32 5 5 2 1 13 10 20 10 5 45 $75 $85 $125 $125 $5,625 $7,650 $6,375 $2,625 $ 22,275 Total Hours 237 Extended Cost $ 22,275 Discount* $ (5,250) Estimate (Total Not to Exceed Cost) $ 17,025 * Discount offered as an investment in building a long-term relationship with the City 27 ------------- Certified Public Accountants 06.30.)010 Rates for Additional. C11 0 Professional ;--iervices If it should become necessary for the City to request the auditor to perform additional work as a result of the specific recommendations included in any report issued on this engagement then such additional work shall be performed only if set forth in an additional contract between City of Anna and the firm. Any such additional work agreed to by the City and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included iri the sealed dollar cost fee, fri 0 ji Din Par I e Audir 0 We will work with you to identify any federal awards that might meet the criteria for an (OMB) Circular A-133 audit. Should you require a single audit, we will charge a flat rate of $2,500 for the audit of one major program. Manner of Payment BrooksCardiel, PLLC will bill hours of work completed during the course of the engagement and out-of-pocket expenses incurred in accordance with the firm's dollar cost fee proposal, The invoice shall provide detail, including number of hours completed per individual and billing rate. Interim billing shall cover a period of not less than a calendar month. 28 If v" BIRO OKS C�crtifed P'Jb1jc Acccrurtant�i Sleptornt Eir 21C,, 'IC 16 City of Anna, ION as III N. Powell Peiiikway Anna, Jle)� a s, 7 4 C19 THe fallawing reprosents our -uridEirstanding cill the sarviCEIS we will] pravide the Cily of Anna, Tci)� als. Nau havo raquicisled thlat we audit the financial statements of thEl ga-ijarrmental activiticis, ffle businesq-typa activities, each majar funct, and the aggrogale reimainir�g fund information of ffie City cill Anna, 'Bexas, as of Sciptamber 210, ICU(, arid fo�i' Ifle year Iflen andEid and thEl I-Ellated riotEis ta tHEi financial stedernEirts, wHichl (iolllecltiVEIIY ciompriSEI the Ciq of Anna, TEiNas's basic financiea statements ?s listed in the tablo cif (icinlents. WEi arEl p1ciascid lo cicirillirm aur acceptance and ciur undEirsterridingof this eiuditEindageMEintbyrreans of thiskilter. Our auiditwilll be conducted v6th tho objectIve cif our expressing art opinion on each opinicin unit. Accounting principlEis gEiriara.ily acicapied in Ifla Uhitad States of Amcirica require tHat itle meimigEIMCrnt's discussion and analysis, 1JEWis.licin inforl-nalion, and budgetary comparison informalicin bEi prosEintod lo supplement ffie beisici financial stalEIMEinis. Suich Jinllciiirration� alfflaugh not a part cif the baisic financial slatEiments,, is rEiquirEid by Ca-varnmental Acciouriting Standards llcieijid, who considers it to be an essential part cif fir aricii al rEIrICirtir g for placing thc basic fir ancial statemonts in an apprapriato operational, accincimic, cir Historical cont(i> 1. As ped of our EingagarnEint, we will apply cartalin llimited procieduvas ta the required supplemaril airy iniformalioni �JRSI: in accardance with auditTrid standards genarally aciciapied iri thEl United States of Arriericia. INEISE1 lifnitEid prcicieduirEIS Will consist primarily of inqLiiriEI3 of manaigemcin] regarding thEiir metflods cill mEiasurEirriarit arid prosEliflaficin, and comparing lhci in1airriaticin ilor ccinSiStEincy with manaaarnent's respansas tu ciur inquiries. VMa will not EIXPIICISS EW cipinion or provIdEi any farm of assurance cin tho A91. Me fo'llosA ing MSI is required by accounting principles generally accepted in &a U[nifed Stams all Arnarica. This RSJ will be sub�'�ected ta (ertain limited procedures but will not be au ditcid: 1, ManagEIMEinifs discussion and aniallysis 2' BuidgEflary Uimparisori lInfarmaiticin 3' Pension and CIIEB schedules I C19�' ElvaiqjrEen Gircla I Sudle 20CI I ]he Woodlands, TX MWI I Tal: 281.9(DAMI I Ham: E180.875.0587 I vjww.l]roa�sCardiel.con SUPPlEffnentary informaticin cither 111an PER wi-.1l accompany 1hEI City of A�iana, lexas"s basic financial slatarrients. WEI Wil-I subject thEI following suipplemanlary inforn-aticin la the audifln�l procedUrEis appli0d in our audit of the basic firiairic: - ail. silatarrents and pEirform coolaiin aidditiona] r1rocedurEIS, including compaiing and recioric-11.1ing Ole supplamanlary Jn1larmaticin to thEI underlyiri�l acicciuntin�l and cifflar r0cords USEid ta PlEpaire the flirian(jal stalernEints or la tbEI Ilinanciall statEIMEints &emscil-viies, arid additiarial. rlrocieduirEIS in accordairIGEI With audifriq standards gonEiral.-IN acCEIpled iin the Unitad Slates of AMEirica. WEI intaric to providEi an apinkin an tho following supplernEinlary information in ralation tci thEI firiandial. statamonts as a whale: 1) Individual nonma*jor fund finandial SlatEirylients and schoduilEis 2) Carrbiningslatamients 1111a 011j cidive cif cmi Audit The abjective of our auidil is the expression all oFinicins asi to whether youii basic 11iriancial stalenlEinis are fArly PrEISEinted, in a.] majerial. rEispe(ts, iri accordanCE1 NAith gUnEiraEy ai(UptEid acciounting principlEis and ]a roport ori 1ha 11airrii(iss cif thEl suppkimontary irillarMation:i-EifOrrad to in thEI second Flaragraph whan cionsidared in I-Ellation ta tho financial slatern(ints as a wholle. Cur audil Will t El cionducled iri acicardancio with auditing standards genEirzi].IN accapt(id ir thEI Unitad SOWS of America and will in(luda tests cif Ole accouiriiing reccirds arid othor pracadures we cionsidar nEICIE18sary to onable usi ta EDFrEISS SUCh apiniO11S. WEI cannot pra-jide assurame that unmodified opin-icins will be axpressad. Cir(urristaricas may arise ir "hich it is nEICEISsary faii us la modify aur oFiniaris ar add Elmrhasis-of-rriiaittEiii ar other-mattor paiiagrarhs. If ciur cipiniaris on tka friaricial staternants arci other Jhari urii-ricidififf, Ave will dis(uss thEI reasons "jith youi in adviancie. If, far any reason, wie a:i-Ei unablEI to COMF]EItEI thEI audil ar ar(i uviab]a lo form oii havEi not formed cipinians, WEI may dEiciline to EI.>FjrEISS apiridollis or to iSSUEI a liaparl as a rEISUIt Of th.-IS EingaaernEinl. Gariciral Audit Prcic ed-u res We will (anducl our auidiil in accordancEi with auidifing standards gEriera.1y a(ICI(IptEid in the Unitac- 9tatas cill Amoricia (�L.S. GAA9). Thoso standards raquidre theil -v%IE' Flan and PEIBIlarrr the audit to abiain rGasanabl.0 assurancEi about whethEir the basic financial! staicimarits ara froci from maieriail misstatament. An audit invol-Aas porfcirrnin�l pracadures lo ablain audit EiAdOrICO about tho amiaunts and disci-lasurcs in tha financial slatarnfints. 'Me procedures seladed depond cin the auditar'si judgment, including 1ha aSSEissrr ant of tho r.*isks cif matarial misstatamcin] all the flinancial staternents,, whether duie Ja orrof, fraudulent ilinancial reporting, misappropriation Of aSSEIIS, OT vkilatloris all lzrws, Elavarrrrienital r(qulafans, grant agrEienlEinls, or cortra(Wal agrearriants. An audit also iriduclas evalluating the approprialciness of a(courilbag pO11i(iEIS USEid and Jha reasonableriess of signifciant accouriting esUrriatas mada by rrianiagorrient, as woll as evialuialkig thEI ovorall. F rasaritation all 1hEI financial stalernEiril 9. 2 Initerinial. Coritral A-i F rciciedt[rcs Because all the JinhEirent Eirnitalions of an ai togelHeir with the iniblercint.limitatians all irilerrial cionlral, an unavajdablEi risk Iliat sOMEI maleried niiissiatEimenits rray not be dElIC(iled EDdStS, Min thoLigli 1hEI ai dJ1 is properly planned and pe�ifformed in accardan(e Willi TA.E. GAAS. Tni makiina, our risk asSEISSME1i WE (1cirsIdEirlinterrial. cci rEllEivani t(ItfiE1 Eintilty"S prEIP01110i and fair prEISEinilaticin cif 1hEI financial slatEirrii in orccir lo dosign audit proceduircis 1hat are appropriate in Me Gil'(UMSIMIC69 but not for 4he puirpcisci of cixprcisairi�l an opiniian ori the Eillilect.11VEIriess all tho entily's internal ciorilral. HaWEIVEIII, We Will] cammuniCaltEl to YOU ini writing cancorning any significant deficien(jes ci malerial Weaknesses ininiternal contro.1 r(devant to tho audit of tlile f*nanci.lial slatEIMEints that WEI Have i1C Eintifiod durin- tble audit. 0 Compliance willh La" s arid Regulations As part of obtaining reasonable assurance about -NhElthe:i� fl1lEI firiariciial statements wo frae of malicirial miistatornent, WEI Will perform tests all tho City cif Arina, TO)�as's (ampliancic 41h th(i prcivisioi-is of applicable laws, rEIgL latici contracts, and agrElEIMEinils. HIOWElvcir, the ob,jective of our audit will not be I ci provide ari opi-nian ciri overall carripliai and NAie wi-11 not w�press such an al inion. Manaiplerneinit Responsibilillies Our ai dil wi.11 be ciorlic ucit(id an the basis thlat manaflEffnEin] and thosEi charged w.16 governance a(iknciwlElc'-Ei arid uridEiji thlat tBEIY flavc respairisN-lity: ej 1. For the pjiciparatiion and fair pxisaritation of 1ho ilinanciall statEIM(ints in accordance with accaunting prin6ples gencirally ac cepted in the Unifed � lates of Arrerica,-, 2. For the design, implorrentation, aric mairileniancie cill iniernal (ici relevant to 1he pr eparaticin and fair proseintation all finaincial. slatements 1hat aiia free from majorial m--issta]EIMEiril, whEitt ar due to cirrar, Ilrew dUlEird Enar cial iiepci misappropriatlan of assets, or viialalions of laws, gOVEiiinnicirital regulaticins, grant acirciernanis, cir (icintracittial agrciE rn( nts, airic 3. 111a provide us With: i. A((asi to alll information cif which managorriont is awara that is ralavarl ki Jhe prEpElflaticin and fair prEISEiniai all tHe firiancial steilemenis such as rociorC SA documental ion, and cither rr ai ii. Additional informaliort thal WEI maN request Jlrcirn managenlEinli for IhEl purpose cif ]if Ici aii, and iii. Unrastrictod accass to persons within tl-ci (int" from WHOM WEI determine �1 nEIGGSsary to obtain audit ov.'AEincu. 4. For ini(luding the auditor's I-Elpart in any dauumant containing ilinancial slatEirrients thal indicates thal such financial stalemenis Hava been audited bN thEI entity's auditor,-, 3 3. 11cir identifying anc onsuflng that the Ell-tity CCIMPHEIS W1111 thEl -laws and regulations aippli(ablEl la its activities-, and Fc r adjusting 1116 firi aricilial. StElt(IMEints to correct maitoriail. missl atkiments and colifirming 10 US in thEl rrianag(IMEIrt representafion IE1ltE11' thal lhe efilecls cill any un(ICII'rElcited irisslatEIM(ints aggrogaled by us duriri�l thEl current EingEqemont and pertaining to thEl currartyearporkd(s. undEiraudiii eire imrriatEiria.1, both individually ail C iri the aggregate, io ille financial stalenl6nis as a Whole. I I With rEigard to thEl SUPP-EIMEintary irillormation rElferrod to abovo, yciui acknowledge and undersiand your rcisponsibilit�j: �ja. for lha F11-Eirlaraticin of lhe supplementary informalion in accordZILICIE1 with WEI app-licablEl CritEiria.-, (IJ: tci prcvidEl US with IhEl appropriale writterl r6prEISEinlations 118-ardirg SUPPIEirrientary i:i-iformation; (�ci' lo include ciur roport cn the suprllenlEinlary irillormation in an� c: . c cumont that cc ntains tI11E1 SUPPI(IMEM11 ary inilormatiori arid lhat inclicaltEIS lhat WEI HaVEI reporled c n SUCIF SUPP.IEIMEMIX� informalion,-, and (�d: tCI P118SHF11 the suipplemarilary irillcrrriaticin wilh We audilad financial stalenlEinis, or ill tho supplenl6niary information wil-I ncil be PrEISEIrited wiffl tfle audited finamial staitomiarils, to rrake thEi audiled llinancial statorrients r6adfly availablo to tflo inlanded users Of tIAEI SUPPIEIM(intaq inflarmatIcin no later iflari the dale of issuan(e by you cif 11716 SUPP]EIMEintary informabloa ar d ouii roport thercicin. As part cill our audit process, WE wil.1 request from rrainagomen] and those chargEid with governance, wiiittan (icnilirmation (OrICEirnin�l rEiprESEintat.Icins made I c us in ccinnEICItiOrl witH the audit. AAitfl resped to any nciriattEst SErviCES We perform, the City of Arna, 'Ae)�as's rrianagEirneiii: is responsibla for (a] making al.1 managEIMEint docisicins and performing all mana-Eimont fuinctilons; 0 (b' assigning a (cirrPEItEint individual to CIVEIrSEe IhEl sorViICE1S,- 11C) Elva.lualirig thEi acloquacy of the services perfornlEid, (1d: Eva-lualing anc accepting rEISPOnSibility for tflo rEIS-UlItS of the SEirviCEIS performed, and �je. E stEblishing and maintairiing internal (cinirc Is, including moriitcirin�l cinigoing act.'xi if as. R(iportinig vMe will issuEi a urittEwi reporl upcin complaticin of ouir audit Cif tHE1 Cit�j of Anna,, Illexas"s basi( financial statorrients. Our report will be addrEissed to thE governing body of the Ciiy of Anna, IoNas. We cannot prcividEl assuranica thal unrno&fiod opinions wifl] be expresSEid. ClircurnsianCEIS rr ay ariJE in whkh it is riEcassary 11cr us to mc dify our opin.icns,, add an E1MpflaSiS-Of-MZItt(1r cir ciiIhEir-matier paiiagraph(�s', or withdraw from thEI Einga,CIEIMEint. OtHEIr Wo Understand thal your EIMPIOYCEIS AA ill p i�(iparE all (cirillirmalions we requElsl arid will Icicale any do(urnents cir supporl fcir any cilhei, Irailisactioris we SEIE Ct for tosting. 4 If Nciu iitand ta ptblish or othEirwiso reproc-u(e WEI financial slaterrients arid maike iieforEirICEI to ouji firm, yciu aigrea to provida us wilh prinlers' proofs cir masters 11cir ouji reViEiw ainid appiici,, oil befcirci printing. Yciu also agrEIEI 10 FjrOvjdEI us wilh acopN cif thEI firialrEiproducEid material Ilor citr appjicivzil beforc il is distrit uted. r-rciviisioris of Engag(irricini AdminiEifiiaCcin, limiing arnd FeeEi Dwingthe cciurse cif the cin�laigerndnl, A a may communicate with yciu or yciur pEirsonirlie-I via 11ax or e-m2iil, and you should be awarc & ait cici=uni(aiticin in ihclSEi mediums ccintaiinis a risk of inisdii-Eicted or inlerceptod carrimunicalicins. `IhEI timing of our audit Aifl be s(haculed 11ciii performance and COMPIElticin as 11cillaws: Begin Complete C ctcibcir DocUME111i iniernall ciontrol and prelimirarytEISIS ObSEir-xiici physic al invenj orios (ill inucossary) ri/ei C ctcibcir Mail confirmaticir s Berform year-ciric audit PrCICIEidures faruary, 2C117 FE& ruary, 101' 1 Issue �iudii raport Mike Brooks is the einigagernent partner for tho aud.11 SOrvi(es SpEICifiEid iri this -latter. His respansitilitiElS incdude SUPEII-ViSirg BrooksCardicil, FITITJC's sorvicas perfo�cmcd as part of this engagement and s�gniriq cir authorizjn�j anothor qualified firmi represeritallivo Ici sign thEi atic it report. Our fElEls aro bascid on the arriount of timo requirod at varicius levols of respcirisibility, plus acttj ail out-of.-po(ket expenses. Trivaices A ill bEi rendered moritHly and are payablEi upon presciniaticin. WEI EistIni ate tfilat ciur fee for the au c it will bEi $17,033. WEI will notify you irrirnediaiel� cif any (ircurnstan(es WEI Oncouriler that (ould significantly alfoct this initiEd fEIEI astimaito. "hEnElver passible, ima iNill aflempt 10 U11EI Ciq of Anna, lexas"s pEirsonnel to ass�st in thEI pjiciparaticiri of schodUlEls and aralyses cif aiccourls. This Eillfortcou-id st bstanti ally I 16du(e ouji tirnEl r0quirEIMEints and IlaciFilate the timely condusion of thEI audii. E Other Matters During thEi (ciurse of ffia audit wEi may cibsEirVEI oppcirtdnitiElS for e(icincimy inA or improved con-h�o] s OVEIII, yo uir CIPEirai ions. W ( i wi - � I bring such matilers I a I ha ati anticin oil I he appiny Iri atE i ll evoll of miau agEirrient, aithEir orally cirin wriling. WEI agrao tci r0lain our audil dociumentation or work papers faii El PE111iod cill at Mast fiva yaars fram the date of ouii report. A] ]he (ionclusicin of ciur audit Einaagorrant,, WEI will communiciatEl to those cliarged with gavarrianCEI thEI 11allawing si�lniflicznt findings from the audit: • Our ViEIW1 abaut thEi qualitatiVEI ZISPEICItS cill thEI cintit�j`s signijli(a�nt a(countIng piiacti(es; • Sign.*ific ant difficulties., ill anN, en(iciuntared during 1hci zudil; • Unciorre(ItEid rriiSStaftimients,, othar than those WEI bEllicive are trivJaL if anY,-, DisagreEiments with managarnEint, if any,-, Olhar Jlindirgs cir issucis, if any, a�dsling from tho audit that aTEI, in our PTOfEissional judgMEInt, significant and rEllEIVE1111 tci thoso (hargad with gCIVEiruanClEi rEigardirla their oversight of 1ha Jlinan(ial rcjpartir�g pro(ess; M atElAial, corro(tEid misstatCIMEints that ware brought to the attainiticin of managarn(int as ai result of aur audit pro(ecItuicis; Repreisonlaticins wo requasted from managamont; • MainagEirrianit's consultations with othEir accciuntants,, if any; and • Significant iSSUEIS, ijl ariN, arlsina 11iiarn ilia audit that wero discussed, cir thEI stib�-jed cif (urrE[SporudarCEI, wilh managurrent. ThEi audit documentation far IHS EingagernEir I is ]he proporty c0l BraciksCairdiel, PLLC and constitbies (orfideinitial. information. HciwieVEIr, we rray bEl requieStEid to rriake CEirlain awidii c1cicumentalion ava�lable to (artain rElflulators and faclaral agEindieis end thEI U.S. GOVEirnMEird Ac(auntabifty 011fice pursuant lo authority givan ta it by law or iiagulatilori, or to paor reVE]WEIRS. If requestEid, acices3 to such zudit do(urriaritation will be prov.idEid undE111 thEI SUPEirvision cill FirooksCardiEll,, PLLC's flElAsonnel. FuirthermorEl, upcin roquost WEI may IlrovidEl CopiEN of soleded audit dociumientatiloin tci these agEin(M3 and rEigulators. The ragulataiis anc: agE[nC.*IEIS maN intEir d, or dEICidEI, tci distribUtEl tBe (apies of infarmaticin (orilainEid tharElin to othEirs, in(ludiing cOHEIr governmintail aigon(IjEIS. F]EIZISEI sign and rElturn 1he attachod copy of this letler ta indicata your acknowledgmEint of, and agrElElment with, tho arranPOMEinls 11cir our audill of tha financial slatEimcints including our reSPEICHVEI rospar sibilitiElS. WEI zpp�i-Eiciate the opportunity to be yotui financial slatorrient auditors and look forward lo worl-drig"ithyciii and your stallf. I Respecifully, BrooksCardiEll, FIT] LC -� OS E Evargf (icin CirClEl 1 91 e 2(10 111hEl Wloodl ands,, TX 7� 38CI RESPC NSE: Mis letlicir corracily SEItS famlH our underslanding City cill Anna,, 'Be)i as Ackr CIWIIEidgEid and eqraed cm bohalf of tEe City of -Anna, Taxas by: ManagOMEInt NaMEI: � k 111, Titici: ('711 DatEl: Mayor gr Cjjy Ccu Name: 'flitle: Date: 7