HomeMy WebLinkAboutRes 2017-08-351 Audit ServicesCITY OF ANNA, TEXAS
RESOLUTION NO. SOI9-n,?- N5
A RESOLUTION OF THE CITY OF ANNA, TEXAS AUTHORIZING THE CITY MANAGER
AND THE MAYOR TO EXECUTE AN ENGAGEMENT LETTER FOR AUDIT SERVICES
WHEREAS, the City Charter of the City of Anna and Chapter 103 of the Texas Local
Government Code require that the City have an annual audit performed by independent
certified public accountants; and
WHEREAS, the City of Anna, Texas (the "City") has requested a new proposal for audit
services from LaFollett and Abbot, PLLC; and
WHEREAS, City staff, after receiving and reviewing information from LaFollett and Abbot,
PLLC, has determined that the independent accounting firm is experienced and qualified to
provide these services; and
WHEREAS, the Engagement Letter agreement authorizes LaFollett and Abbot, PLLC to
provide audit services for a period of two years with three additional optional years;
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 City Council herby authorizes the City Manager and the Mayor to execute an Engagement
Letter with LaFollett and Abbott, PLLC for audit services, 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 Engagement Letter agreement.
PASSED AND APPROVED by the City Council of the City of Anna, Texas on this 22nd day of
August, 2017.
ATTEST:
City Secretary Carrie L
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RES. PAGE 1 OF 1
August 15, 2017
and Abbott PLLC
Certified Public Accountants
Susan LaFollett, CPA — Partner
Rod Abbott, CPA — Partner
To the Mayor, Council and Management of the
City of Anna, Texas
101 N. Powell Street
Anna, TX 75409
We are pleased to confirm our understanding of the services we are to provide the City of Anna for the
years ending September 30, 2017, 2018, 2019, 2020, and 2021. We will audit the financial statements of
the governmental activities, the business -type activities, 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 City of Anna as of and for the years ending September 30, 2017, 2018,
2019, 2020, and 2021. 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 City of Anna'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 City of Anna'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 U.S. 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
3) Economic Development Fund Budgetary Comparison
4) Schedule of TMRS Contributions —Last 10 years
5) Schedules of Changes in Net Pension Liability and Related Ratios —Last 10 years
We have also been engaged to report on supplementary information other than RSI that accompanies the
City of Anna'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 we will provide an opinion on it in relation to the financial statements as a whole, in a
report combined with our auditor's report on the financial statements:
1) Combining Balance Sheet—Nonmajor Governmental Funds
LaFollett and Abbott PLLC
PO Box 717 • Tom Bean, TX - 75489
903-546-6975 - www.lafollettcpa.com
2) Combining Statement of Revenues, Expenditures and Changes in Fund Balances — Nonmajor
Governmental Funds
3) Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual
a. Debt Service Fund
b. Community Development Fund
The following other information accompanying the financial statements will not be subjected to the
auditing procedures applied in our audit of the financial statements, and our auditor's report will not
provide an opinion or any assurance on that other information.
1) Introductory Section
a. Letter of Transmittal
b. Organization Chart
c. List of Elected and Management
2) Statistical Section
a. Net Position by Component
b. Changes in Net Position
c. Fund Balances, Government Funds
d. Changes in Fund Balance, Governmental Funds
e. Assessed Value and Estimated Actual Value of Taxable Property
f. Direct and Overlapping Property Tax Rates
g. Principal Property Taxpayers
h. Property Tax Levies and Collections
i. Ratios of Outstanding Debt by Type
j. Ratio of General Bonded Debt Outstanding
k. Direct and Overlapping Governmental Activities Debt
1. Pledged -Revenue Coverage
m. Demographic and Economic Statistics
n. Principal Employers
o. Full-time Equivalent City Employees by Function/Program
p. Operating Indicators by Function/Program
q. Capital Asset Statistics by Function/Program
Audit Objectives
The objective of our audit is the expression of opinions as to whether your 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 first 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 City of Anna and other procedures we
consider necessary to enable us to express such opinions. We will issue a written report upon completion
of our audit of the City of Anna's financial statements. Our report will be addressed to the Honorable
Mayor and City Council of the City of Anna. We cannot provide assurance that unmodified opinions will
be expressed. Circumstances may arise in which it is necessary for us to modify our opinions or add
emphasis -of -matter or other -matter paragraphs. If our opinions 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 issue reports, or may withdraw
from 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 report on internal control and on compliance and other matters will
include a paragraph that states (1) that the purpose of the report is solely to describe the scope of testing
of internal control and compliance, and the results of that testing, and not to provide an opinion on the
effectiveness of the entity's internal control on compliance, and (2) that the report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the entity's internal
control 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 City of Anna 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.
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 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 government or to acts by management or
employees acting on behalf of the government. 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, 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, and of any material abuse that comes to our attention. 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. 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 your responsibilities for the financial
statements; compliance with laws, regulations, contracts, and grant agreements; and other responsibilities
required by generally accepted auditing standards.
Audit Procedures—Internal Control
Our audit will include obtaining an understanding of the government 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 City of Anna'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.
Other Services
We will also assist in preparing the financial statements and related notes of the City of Anna in
conformity with U.S. generally accepted accounting principles based on information provided by you.
These nonaudit services do not constitute an audit under Government Auditing Standards and such
services will not be conducted in accordance with Government Auditing Standards. We will perform the
services in accordance with applicable professional standards. The other services are limited to the
financial statement services previously defined. We, in our sole professional judgment, reserve the right
to refuse to perform any procedure or take any action that could be construed as assuming management
responsibilities.
Management Responsibilities
Management is responsible for designing, implementing, and maintaining effective internal controls,
including evaluating and monitoring ongoing activities to help ensure that appropriate goals and
objectives are met; following laws and regulations; and ensuring that management and financial
information is reliable and properly reported. Management is also responsible for implementing systems
designed to achieve compliance with applicable laws, regulations, contracts, and grant agreements. You
are also responsible for the selection and application of accounting principles, for the preparation and fair
presentation of the financial statements and all accompanying information in conformity with U.S.
generally accepted accounting principles, and for compliance with applicable laws and regulations and the
provisions of contracts and grant agreements.
Management is 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 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 government complies with applicable laws, regulations,
contracts, agreements, and grants and for taking timely and appropriate steps to remedy fraud and
noncompliance with provisions of laws, regulations, contracts or grant agreements, or abuse that we
report.
You are responsible for the preparation of the supplementary information, which we have been engaged
to report on, 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. 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) you believe
the supplementary information, including its form and content, is fairly presented in accordance with
GAAP; (3) 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 and providing report
copies of 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.
You agree to assume all management responsibilities relating to the financial statements and related notes
and any other nonaudit services we provide. You will be required to acknowledge in the management
representation letter our assistance with preparation of the financial statements and related notes and that
you have reviewed and approved the financial statements and related notes prior to their issuance and
have accepted responsibility for them. Further, you agree to oversee the nonaudit services by designating
an individual, preferably from senior management, with suitable skill, knowledge, or experience; evaluate
the adequacy and results of those services; and accept responsibility for them.
Engagement Administration, Fees, and Other
We may from time to time and depending on the circumstances, use third -party service providers in
serving your account. We may share confidential information about you with these service providers, but
remain committed to maintaining the confidentiality and security of your information. Accordingly, we
maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal
information. In addition, we will secure confidentiality agreements with all service providers to maintain
the confidentiality of your information and we will take reasonable precautions to determine that they
have appropriate procedures in place to prevent the unauthorized release of your confidential information
to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be
asked to provide your consent prior to the sharing of your confidential information with the third -party
service provider. Furthermore, we will remain responsible for the work provided by any such third -party
service providers.
We understand that your employees will prepare all cash, accounts receivable, or other confirmations we
request and will locate any documents selected by us for testing.
We will provide copies of our reports to the City of Anna; 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 LaFollett and Abbott PLLC and
constitutes confidential information. However, subject to applicable laws and regulations, audit
documentation and appropriate individuals will be made available upon request and in a timely manner to
federal agencies 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 LaFollett and Abbott PLLC 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 a federal agency, oversight agency for audit, or
Pass-through Entity. 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.
We expect to begin our audit in December 2018 and to issue our reports no later than March 31, 2018.
Rod Abbott, CPA is the engagement partner and is responsible for supervising the engagement and
signing the reports or authorizing another individual to sign them.
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 $22,300 for 2017, $22,850 for 2018, $23,500 for 2019, $24,250
for 2020, and $24,950 for 2021 respectively. Our gross fees include auditing the CDC and EDC at $950
per unit per year. The above total fees do not include additional fees estimated at $4,500 to $6,500 that
will apply for any year which Single Audit procedures under Uniform Guidance are required. We also
request the City to submit a $4,000 retainer when returning this letter and recurring with optional annual
renewal years. 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 90 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. 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 appreciate the opportunity to be of service to the City of Anna 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 and the retainer of $4,000 to us.
Very truly yours,
LaFollett and Abbott, PLLC
Certified Public Accountants
RESPONSE:
This letter correctly sets forth the understanding of the City of Anna.
Management signature:
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LAFOLLETT & ABBOTT PLLC
CERTIFIED PUBLIC ACCOUNTANTS
118 Cottonbelt
P. O. BOX 717
Tom Bean, TX 75489-0717
Response to the City of Anna's
Auditing Services Request for Proposal
Authorized Contact: Rod Abbott, CPA — Audit Partner
PO Box 717, Tom Bean, Tx. 75489
(903) 546-6975
rod. abbottglafollettcpa.com
August 7, 2017
and Abbott PLLC
Certified Public Accountants
EXECUTIVE SUMMARY
Susan LaFollett, CPA — Partner
Rod Abbott, CPA — Partner
To the Mayor, Council and Management of the
City of Anna, Texas
101 N. Powell Street
Anna, TX 75409
Dear Mayor, Council and Management:
Thank you for your request for our proposal to perform the financial audit of the City of Anna, Texas (the
City) for the fiscal years ending September 30, 2017 through September 30, 2021.
Our proposal for auditing the City of Anna will be in accordance with Generally Accepted Auditing
Standards (GAAS), Government Audit Standards (the Yellow Book), the American Institute of Certified
Public Accountants (AICPA), and as necessary, the Single Audit Act under the Uniform Guidance. We'll
also prepare the Comprehensive Annual Financial Report (CAFR) in the prescribed format necessary for
the City to receive the GFOA's Certificate of Achievement for Excellence in Financial Reporting (the
certificate).
We believe that awarding the engagement to us will have several advantages to your City. We are
currently engaged as the independent auditor for several municipalities that follow Government Auditing
Standards. This year our firm will perform several municipal audits in Texas and our staff consists of
only experienced auditors. Our partners also have experience working with your Asyst software.
We currently prepare the CAFR for one recurring client that has received the Government Finance
Officers Association's Certificate of Achievement for Excellence in Financial Reporting for years 2013,
2014, and 2015 (2016 certificate is pending). We have also been engaged for fiscal year 2017 to audit
another City that submits a CAFR to the GFOA, so the City of Anna would only be our firm's third
CAFR client that submits for the GFOA's certificate. ObviouslKyour City will be a veru important client
to our firm as we continue to grow our audit practice.
Many audit firms consider cities the size of Anna as "small" and their audits sometimes get "lost in the
mix" as larger cities get priority. For our firm, your City is definitely "large" and the service you will
receive from us will reflect this fact. Our firm is 100% committed to issuing the City's CAFR by the
required deadlines and for the CAFR being awarded the GFOA certificate.
Please give serious consideration to our proposal noting our governmental and nonprofit auditing
experience, our membership in the American Institute of CPAs, Texas Society of CPAs, and Government
Finance Officers Association. The firm's record with all regulatory and licensing, and professional
organization is totally unblemished. Mrs. Susan LaFollett, CPA and Mr. Rod Abbott, CPA are authorized
to represent the firm.
Our fee estimate is found in the section labeled "Dollar Cost Bid".
LaFollett and Abbott PLLC
PO Box 717 , Tom Bean, TX • 75489
903-546-6975 • www.lafollettcpa.com
If you have any questions about our proposal, please do not hesitate to let us know.
Sincerely,
LaFollett & Abbott PLLC
Certified Public Accountants
PROPOSAL FOR THE CITY OF ANNA
FOR THE FISCAL YEARS ENDING
SEPTEMBER 30, 2017 THROUGH 2021
TABLE OF CONTENTS
Page
TransmittalLetter................................................................................................. i
Proposer and Staff Information........................................................................... 1
Experience..................................................................................................... 4
Specific Audit Approach................................................................................... 5
OtherInformation........................................................................................... 8
DollarCost Bid.............................................................................................. 10
Attachments:
A. List of recent audits
B. Resumes of key personnel
C. List of references
D. Letters of recommendation
E. Estimated audit fieldwork schedule
F. Peer Review Report
G. Historically Underutilized Business Certification
DETAILED PROPOSAL FOR THE CITY
This proposal has been written to respond to the "Request for Proposal"(RFP) for audit services of
the City of Anna, Texas. It has been written specifically for the City.
Proposer and Staff Information
Firm Qualif cations and Experience
LaFollett & Abbott PLLC is a local CPA firm near Sherman, Texas that specializes in performing
audits of governmental and nonprofit organizations. The firm's governmental audit staff consists of
two full-time CPAs, three additional full-time professional staff, and one associate CPA that is a
certified government finance officer. We also have long standing relationships with other associate
CPA's and utilize them as needed on larger engagements. Managing Partner Susan LaFollett, CPA,
and Audit Partner Rod Abbott, CPA have performed numerous governmental audits. Governmental
and not for profit audits are not just sideline or `fill-in" engagements, they are the Firm's specialty
and comprise the majority of the Firm's audit engagements. It should also be noted that the Audit
Partner is not involved in the Firm's tax practice. We have found that this allows him to focus only
on completing all Firm audits in a timely and efficient manner and avoids the distractions of tax
practice deadlines.
LaFollett & Abbott PLLC has extensive experience performing audits in accordance with Single
Audit Act of 1984 and standards issued by the General Accounting Office (GAO).
Licenses to Practice
We affirm that the firm and all assigned key professional staff are properly licensed to practice in
Texas and in good standing with the State Board of Public Accountancy.
Partner and StafIn ormation
The Proposed Audit Team
The audit team proposed for auditing the City of Anna is Susan K. LaFollett CPA — Managing
Partner, Rod Abbott CPA — Audit Partner, Keri Goodwin - Staff II, Cody Helm — Staff I, and to
review the CAFR to ensure GFOA certification, Eddie Peacock, CPA, CGFO.
Susan LaFollett CPA, Managing Partner
Ms. LaFollett, Managing Partner of LaFollett & Abbott PLLC, will assume the overall responsibility
for the conduct of the engagement. She will coordinate the activities of the project, allocate
administrative support where required, and direct any supplemental activities, as needed, for ensuring
the completion of the audit within the time and cost restraints.
Ms. LaFollett has over 19 years of experience, professional training, and audit experience. She has
directed audits of not -for- profit organizations and governmental entities, including the Single Audit
Act under the Uniform Guidance. She represents a commitment of the highest level of the firm's
management. Susan has worked for several other firms as well as a "big four" public accounting
firm. See the Partner's resume at Attachment B.
Rod Abbott CPA, Audit Partner
Mr. Abbott, Audit Partner for LaFollett & Abbott PLLC, will assume responsibility for supervising
the audit engagement and on-site fieldwork. He will be responsible for supervising the
implementation of the audit strategy and concluding on the proper GAAP and GASB treatment of
complex transactions and disclosures.
2
Mr. Abbott has over 17 years of professional training and significant experience conducting
governmental and non-profit audit engagements in a timely, effective, and professional manner. He
has extensive experience auditing not-for-profit organizations and governmental entities including
the Single Audit Act under the Uniform Guidance. Rod has worked for two other CPA firms
including a "top 10" national public accounting firm before joining LaFollett & Abbott PLLC. See
the Audit Partner's resume at Attachment B.
Eddie Peacock, Associate CPA and CGFO
To provide the highest quality governmental audit, the Firm's associate CPA, Eddie Peacock, CGFO,
will provide a secondary review of the draft financial statements and to complete procedures that
ensure the City's CAFR includes all necessary information to receive GFOA's Certificate of
Achievement for Excellence in Financial Reporting.
Eddie has provided multiple local municipalities with consulting services. He is also a member of
GFOA's Special Review Committee. See his resume at Attachment B for more information.
Audit Staff— Chance Miller & Keri Goodwin
Tax & Audit Staff II Keri Goodwin graduated from Texas A&M University at Commerce in August
2015, with a Bachelor of Business Administration. Ms. Goodwin has been with LaFollett & Abbott
since September of 2013 and she has already gained considerable audit and tax experience. Her
resume is also at Attachment B.
Audit Staff I Cody Helm graduated from Texas A&M at Commerce in August 2016, with a Bachelor
of Business Administration in Accounting. Mr. Helm has been with LaFollett & Abbott since
February of 2017. Cody has already performed audit fieldwork for the majority of our municipal
audit clients. His experience is detailed at Attachment B.
Continuing Professional Education
All members of the audit team receive continuing professional education (CPE) including
Governmental Auditing Standards (GAS) CPE's. All members currently meet the GAS CPE
requirements for performing governmental audits.
Additional Information
Peer Review
LaFollett & Abbott PLLC has received the highest rating of "pass" on its peer review dated
September 9, 2014 under the AICPA Peer Review Program. A copy of the report is at Attachment F.
Disciplinary Action
No accountants employed by the Firm nor the Firm itself have ever been reprimanded or received
other disciplinary action by the Texas State Board of Public Accountancy, the AICPA, the SEC, or
the TSCPA and no disciplinary actions are pending with the State Board, regulatory bodies, or
professional organizations.
Experience
The following are governmental audits performed by the Firm with Susan LaFollett and Rod Abbott
as part of the audit team within the last five years:
City Contact:
Client
City of Princeton
(GFOA certified Governmental CAFR)
Eagle Advantage Schools, Inc.
(G.A.S. and Single Audits)
Trophy Club Municipal Utility District No. 1
(G.A.S.)
Contact
Derek Borg, City Manager
972-736-2416
dborg@princetontx.us
Angie McDonald Superintendent
214-276-5800
amcdonald@advantageisd.org
Renae Gonzales, Finance Director
682-831-4611
rgonzales@tcmud.org
Texoma Council of Governments Dr. Susan Thomas — Executive Director
(G.A.S. and Single Audit) 903-813-3514
sthomas@texoma.cog.tx.us
Our CPAs have experience in working with governments that use Asyst software and preparing
comprehensive annual financial reports (CAFR's) that have received the GFOA certification for
excellence in financial reporting.
Although only one audit listed above is a CAFR audit, our partners have significant experience with
the CAFR review and GFOA submission process with cities as large as Shreveport, Louisiana. Our
associate CPA Eddie Peacock will provide additional GFOA submission expertise to give your City
an additional level of comfort related to the CAFR's GFOA certification.
Our Firm receives on-going professional education related to new GASB standards. We will ensure
the City that any new GASB pronouncements that affect the City will be discussed and any
assistance needed to implement such standards will be provided.
Scope and Audit Approach
The audit will be performed in accordance with standards issued by GovernmentAuditing Standards
and the American Institute of Certified Public Accountants.
The Firm's audit philosophy is to provide the highest quality audit possible in the most efficient
manner with minimal interference in the day-to-day operations of the client's administrative staff.
Past experience has shown that frequent and open conversation between our Firm's management and
the client's staff is the best way to accomplish this objective.
PHASES OF AUDIT WORK:
Phase I - All Audit Team Members (16 hours)
After a briefing with management, LaFollett & Abbott PLLC will:
Obtain and review necessary background information relative to the audit and send a
comprehensive pre -audit checklist to management. Visit with the previous auditor and
request working papers as needed.
b. Have all members of the audit team review the Generally Accepted Auditing Standards.
C. Make arrangements for the entrance conference.
d. Arrange to have all books and records available for review upon arrival at the City.
e. Review internal policies and procedures for data entry and reporting in the accounting
software.
We will require the assistance of the City staff for compiling our audit requests, but most requests
should be similar to requests made by your prior auditor. Additionally, all first year audits require
that we obtain copies of legal documents for our permanent files such as: leases, debt agreements,
financial policies, and certain other documents.
Phase II All - Audit Team Members (20 hours)
We will begin the preliminary on-site work and conduct the entrance conference. We will observe
the City's operations to become familiar with its specific procedures. We will establish procedures
for discussing any material audit exceptions or noncompliance with state or federal laws and
regulations.
Phase III - A11 Audit Team Members (31 hours)
We will review the internal control structure of the City. The amount of audit testing that our
auditors need to perform is directly affected by their assessment of control risk. Our purpose of
assessing the control risk is not designed to detect errors, irregularities, fraud or abuse. However, we
use a system for assessing the control risk that is a significant advance over traditional prevention
and detection of material errors and irregularities. It is applied in considering each significant class of
transactions and related assets involved in the audit.
Our approach consists of the following steps:
Considering the types of errors and irregularities that could occur.
Determining the accounting control procedures that should prevent or detect such errors and
irregularities.
Determining whether the necessary control procedures are being followed satisfactorily.
Evaluating any weaknesses and determining the nature, timing, and extent of our audit
procedures.
This approach allows our auditors to pinpoint areas having weak controls and to extend testing only
to those areas. In this way, the evaluation of weaknesses in internal control is more exact and the
testing of the accounting records becomes more effective and efficient.
Audit Sampling Plan - Our audit sampling plan is a method of obtaining efficient, mathematically
valid samples from accounting records. The objectives are to obtain statistically reliable tests of
accounting records and to reduce the amount of time required for detail testing. We have used the
plan extensively and successfully in non-profit and governmental audits. We believe that it is the
most valid method available for sampling accounting records as well as the easiest and most practical
to apply.
In applying the audit -sampling plan to accounting records, the auditor considers the detailed
evaluations of internal controls to determine the extent of tests. Documents and related records
supporting the individual items selected by the sampling plan are examined using traditional auditing
methods. Deficiencies of both monetary and procedural importance are then statistically computed
and evaluated. This approach allows the auditor to determine the appropriate testing required for
each area and to select a small statistically valid sample from the accounting records to evaluate
quantitatively the results.
rol
Information Technology
We have the capability to audit computerized systems and utilize various testing techniques. One
such example is to export certain transactions into Excel and using mathematical models such as
Benford's Law in identifying unusual transactions.
Phase IV- All Audit Team Members (118 hours)
In this phase we will review and test selected asset, liability, fund balances, revenue, and expense
accounts. We will determine if the City can provide reasonable assurance that revenues received and
matching expenditures are in compliance with applicable state/federal grant guidelines.
We will examine accounting records and other documents to determine if year-end financial balances
are materially correct. Cash and debt balances will be confirmed with third parties. Audit differences
will be evaluated by the Firm and discussed with the City as they arise.
Identification of Anticipated Potential Audit Problems
During the course of the audit, we will discuss any audit findings and instances of noncompliance
where appropriate with the City to avoid any surprises at the exit conference or in the draft audit
report.
Phase V- All Audit Team Members (23 hours)
At the completion of the engagement, a final review of all working papers will be performed in our
office. This overriding review is performed to ensure that the final product of our engagement
adheres to the highest quality technical standards that can be obtained from any public accounting
firm. An exit conference will be scheduled with the City.
Phase VI - All Audit Team Members (109 hours)
In this phase we ask the City to consider posting the proposed audit adjusting journal entries. After
both parties agree on the posted journal entries, the City will prepare selected portions of the draft of
the comprehensive annual financial report. Our firm will begin preparing auditor reports, financial
statements, and remaining portions of the CAFR.
After receiving the City CAFR information, we will review the CAFR for GAAP compliance,
completeness, and accuracy. We will address any concerns raised and perform any needed revisions.
GFOA certification review of the CAFR is performed. An audit opinion and related reports will be
provided to management and bound copies of the CAFR will be created.
7
Phase VII— Both Firm Partners (7h ours)
We will discuss audit results and recommendations with the Audit Committee or governance
designees and present all required communications, such as:
1. Auditor's responsibility under generally accepted 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 or difficulties encountered in performing the audit
7. Management consultation with other accountants
We will subsequently present audit results and recommendations with the full City Council.
CAFR Detailed Review to Receive GFOA's Certificate of Achievement for Excellence in
Financial Reporting
The Firm's associate CPA, Eddie Peacock, CGFO, will use a GFOA certification checklist to
provide a secondary review of the draft financial statements and to complete other procedures that
ensure the City's CAFR includes all necessary information to receive GFOA's Certificate of
Achievement for Excellence in Financial Reporting.
Since 2005 Mr. Peacock has been an evaluator for GFOA for the GFOA certificate of achievement.
Because of this fact, we have the utmost confidence that the City's CAFR will be completed so that
you may receive the GFOA's Certificate of Achievement for Excellence in Financial Reporting.
Other Information
Please see Attachment E for our tentative audit planning schedule. We will be flexible with the City
as we finalize dates where both parties are available during the process. We are confident that our
references at Attachment C can attest that we work hard to meet all audit deadlines and strive to
make the audit process as painless as possible for all involved.
Note that Attachment G is the HUB, or Historically Underutilized Business Certification that the
Firm has obtained. This is awarded to minority owned businesses. There are times when applying for
certain grants that extra points are awarded if the City can demonstrate that it does business with a
HUB.
Additional Data
Independence
The second general standard for governmental auditing states that the auditor should maintain an
attitude of independence in both fact and appearance. The firm of LaFollett & Abbott PLLC has no
direct or indirect financial interest in the City and its component units or other interest that could
affect the independence of the firm as defined by the U.S. General Accounting Office's Government
Auditing Standards.
Concluding Remarks
The City of Anna would be VERY Important to Our Firm!
Since we are a smaller CPA firm, the City of Anna would not just be another city on a long list of
municipalities to audit during busy season. You would in fact be a top priority client. Providing
quality audit service to a City such as Anna is vital to the growth of LaFollett & Abbott, PLLC and
given the opportunity, our service to you would reflect that fact.
0
LAFOLLETT AND ABBOTT, PLLC
DOLLAR COST BID FOR AUDIT SERVICES
CITY OF ANNA, TEXAS
The following is the maximum price for the audit at September 30:
Totals
2017 $ 22,300
2018 $ 22,850
2019 $ 23,500
2020 $ 24,250
2021 $ 24,950
Note 1: Pricing for other services outside the annual audit services will be at the
"City" rates noted above. For any year in which a Single Audit under Uniform Guidance
is needed, an additional fee in the range of $4,500 to $6,500 will apply.
10
Standard
City
Audit Team Member
Rate
Rate
Hours
Fee
Susan LaFollett, CPA - Partner
$
195
$
115
26
$
2,990
Rod Abbott, CPA - Partner
$
195
$
115
72
$
8,280
Eddie Peacock, CPA (GFOA reviewer)
$
195
$
115
6
$
690
Keri Goodwin - Staff II
$
85
$
50
110
$
5,500
Cody Helm - Staff 1
$
85
$
44
110
$
4,840
Transportation
$
-
All-inclusive maximum 2017 fee estimate:
324
$
22,300
The following is the maximum price for the audit at September 30:
Totals
2017 $ 22,300
2018 $ 22,850
2019 $ 23,500
2020 $ 24,250
2021 $ 24,950
Note 1: Pricing for other services outside the annual audit services will be at the
"City" rates noted above. For any year in which a Single Audit under Uniform Guidance
is needed, an additional fee in the range of $4,500 to $6,500 will apply.
10
ATTACHMENT A
PARTIAL LIST OF RECENT AUDITS PERFORMED BY LAFOLLETT & ABBOTT
Governmental Audits
City of Anna, Texas
City of Princeton, Texas
City of Pottsboro, Texas
Trophy Club Municipal Utility District
Texoma Council of Governments
Texoma Workforce Development Board
City of Gunter, Texas
City of Van Alstyne, Texas
City of Oak Point, Texas
City of Tom Bean, Texas
City of Howe, Texas
City of Bells, Texas
Not For Profit Audits Performed
Goodwill Industries of Northeast Texas, Inc.
Meals on Wheels of Texoma, Inc.
Texoma Christian School, Inc.
Grayson County Shelter, Inc.
Grayson County Health Clinic, Inc.
ABC Behavioral Health, Inc.
Right From the Start Nutrition, Inc. (OMB -A133)
House of Hope, Inc.
Eagle Advantage Schools, Inc. (OMB -A133)
Greater Texoma Health Clinic, Inc.
Northwest I.S.D. Education Foundation, Inc.
Homeowners Association Audits
Villas of Westridge Condominium Association of McKinney, Inc.
Caruth Ridge Estates Homeowners Association, Inc. (Rockwall, TX.)
ATTACHMENT B
SUSAN K. LAFOLLETT CPA, MANAGING PARTNER
CERTIFIED PUBLIC ACCOUNTANT
CPA Certificate number 057088 from the Texas State Board of Accountancy — September 1991
EDUCATION/HONORS
Graduated from University of Texas at Dallas (UTD) in August 1988, Bachelor of Science in
Business Administration with a concentration in accounting
Accounting Excellence Award from the Educational Foundation of Texas Societies of Certified
Public Accountants — May 1988
Treasurer and Member, National Accounting Honor Society of UTD — 1987 to 1988
POSITION IN FIRM:
Managing Partner
YEARS IN PUBLIC ACCOUNTING:
(18) plus years
WORK HISTORY
Ms. LaFollett spent the first four (4) years of her career at the big four firm of Coopers & Lybrand in
Dallas, Texas. She was employed from September 1988 to September 1992 and advanced to the title
of Audit Supervisor. During this experience, she worked as a member on the audit staff in the
Emerging Business Services group, which primarily served fast growing entrepreneurial type entities.
She was responsible for all phases of the audit engagement including planning, risk assessment,
evaluation of internal controls, and financial statement preparation. Ms. LaFollett's duties also
included training and supervising members of the audit team.
Ms. LaFolIett was employed as an Audit Senior by Adami, Lindsey, Keller & Associates in Sherman,
Texas from September 1992 to October 1993. She was responsible for all phases of the audit
engagement. The majority of the audit engagements were municipalities and not for profit entities.
Ms. LaFollett was employed by Gregg and Company CPA's in Tom Bean, Texas from January 2004
to September 2009, as an audit supervisor. She was responsible for all phases of the audit
engagement. The majority of the audit engagements were municipalities and not for profit entities.
ATTACHMENT B
SUSAN K. LAFOLLETT CPA, MANAGING PARTNER
WORK HISTORY (continued)
In 2009, Ms. LaFollett established LaFollett & Company PLLC, Certified Public Accountants, in
Tom Bean, Texas. The firm name later changed to LaFollett & Abbott PLLC to better reflect the
firm's current leadership and expanding capabilities. As Managing Partner, Ms. LaFollett oversees
the firm's audit practice, which specializes in the audits of municipal governments and not-for-profit
organizations. She has extensive knowledge of Generally Accepted Accounting Principles,
Governmental Auditing Standards, the Yellow Book, the Single Audit Act, and the Uniform
Guidance. Ms. LaFollett has over 18 years of auditing experience in public accounting. She has
overseen independent financial audits for municipalities, charter and private schools, not for profit
entities, corporations and partnerships. The majority of these recent audits were performed under
Governmental Auditing Standards, the Yellow Book, and Uniform Guidance.
PROFESSIONAL ORGANIZATIONS
Member of American Institute of Certified Public Accountants
Member of Texas Society of Certified Public Accountants
Member of Government Finance Officers Association
Member & Past President of Sherman Rotary Club
Treasurer of Texoma Practice Management Group
Past Treasurer of Achievers Practice Management Group of Dallas, Texas
AUDITS PEFORMED WITH THE FIRM
Governmental Audits:
City of Anna, Texas (Yellow Book)
City of Bells, Texas
City of Gunter, Texas (Yellow Book)
City of Howe, Texas (Yellow Book)
City of Oak Point, Texas (Yellow Book)
City of Pottsboro, Texas (Yellow Book)
City of Princeton, Texas (Yellow Book)
City of Tom Bean, Texas
City of Van Alstyne, Texas (Yellow Book)
Texoma Council of Governments (Single Audit)
Trophy Club Municipal Utility District (Yellow Book)
Texoma Workforce Solutions (Single Audit)
ATTACHMENT B
SUSAN K. LAFOLLETT CPA, MANAGING PARTNER
AUDITS PEFORMED WITH THE FIRM (continued)
Non -Profit Organizational Audits:
ABC Behavioral Health, LLC (Single Audit)
A W Brown Fellowship Leadership Academy (Single Audit)
Caruth Ridge Estates Home Owners Association, Inc.
Eagle Advantage Schools, Inc. (Single Audit)
Four Rivers Outreach, Inc.
Grayson County Shelter, Inc.
Gateway Charter Academy, Inc. (Single Audit)
Grayson County Health Clinic, Inc.
Greater Texoma Health Clinic, Inc.
Goodwill Industries of Northeast Texas, Inc.
Heroes on the Water, Inc.
House of Hope (Yellow Book)
Korean War Veterans Association, Inc.
National Relief Charities, Inc.
Right From The Start Nutrition, Inc. (Single Audit)
Texoma Christian School
Meals on Wheels of Texoma (Single Audit)
Villas of Westridge Home Owners Association, Inc.
Your Health Clinic, Inc. dba Callie Clinic (Yellow Book)
PERSONAL REFERENCES
Sherry E. Howard
Mayor of Tom Bean Texas
903-815-8162
Deborah Boring
Past President of Sherman Rotary
903-546-5248
Tom Gregg CPA
President Elect of Sherman Rotary
903-546-6510
ATTACHMENT B
ROD ABBOTT CPA, AUDIT PARTNER
CERTIFIED PUBLIC ACCOUNTANT
CPA Certificate number 081707 from the Texas State Board of Accountancy 2002
EDUCATION
Graduated from Texas A & M University at Commerce in December 1998, Bachelor of Professional
Accountancy
Vice -President of Local Chapter Beta Alpha Psi accounting fraternity
POSITION IN FIRM
Audit Partner
YEARS IN PUBLIC ACCOUNTING
Seventeen (17) plus years
WORK HISTORY
Mr. Abbott began his career in public accounting with Gregg and Company CPA's in Tom Bean,
Texas from February 1999 to September 2007. He was promoted to the title of Supervisor. His
responsibilities included all phases of the audit engagement including planning, risk assessment,
evaluation of internal controls, and financial statement preparation. Mr. Abbott also trained,
supervised, and reviewed the work of the audit staff. In addition, he performed the Firm's annual
internal quality control inspection. During this experience, the majority of the clients were
municipalities and not for profit organizations audited under Governmental AuditingStandards, and
also in many instances, the Single Audit Act.
Mr. Abbott was employed as a Senior Auditor at BKD, LLP in Dallas, Texas from 2007 to 2010.
Responsibilities included all phases of the audit engagement including planning, risk assessment,
evaluation of internal controls, and financial statement preparation. During this experience, Mr.
Abbott worked on numerous audits in commercial, municipalities, not for profits, and employee
benefit plans.
Currently, Mr. Abbott is an audit partner for LaFollett & Abbott PLLC. Mr. Abbott has extensive
knowledge of Generally Accepted Accounting Principles, Governmental Auditing Standards, and the
Single Audit Act under OMB Circular A-133. Current responsibilities include all phases ofthe audit
engagement including planning, risk assessment, evaluation of internal controls, financial statement
preparation, as well as, supervision of audit staff, and detailed reviews of audit work.
ATTACHMENT B
PROFESSIONAL ORGANIZATIONS
American Institute of Certified Public Accountants
Texas Society of Certified Public Accountants
Government Finance Officers Association
Treasurer of the Board — Trailridge Estates Home Owners Association
AUDITS PERFORMED WITH THE FIRM
Governmental Audits
City of Princeton, Texas (Comprehensive Annual Financial Report w/ GFOA Certification)
Texoma Council of Governments (Single Audit)
Texoma Workforce Development Board (Single Audit)
City of Anna, Texas (Yellow Book)
City of Gunter, Texas (Yellow Book)
City of Howe, Texas (Yellow Book)
City of Tom Bean, Texas
City of Oak Point, Texas (Yellow Book)
City of Bells, Texas
City of Muenster, Texas
City of Pottsboro, Texas (Single Audit)
City of Van Alstyne, Texas (Yellow Book)
Non -Profit Oreanization Audits
Goodwill Industries of Northeast Texas, Inc.
ABC Behavioral Health, LLC (HUD Single Audit)
Right From The Start Nutrition, Inc. (Single Audit)
Texoma Community Center (Single Audit)
Eagle Advantage Schools, Inc. (Charter School Single Audit)
Gateway Charter Academy, Inc. (Charter School Single Audit)
A.W. Brown Fellowship -Leadership Academy (Charter School Single Audit)
Four Rivers Outreach, Inc.
House of Hope (Yellow Book)
Trophy Club Municipal Utility District (Yellow Book)
Northwest ISD Education Foundation, Inc.
Korean War Veteran's Association, Inc.
Greater Texoma Health Clinic, Inc.
Grayson County Shelter, Inc.
Heroes on the Water, Inc.
Caruth Ridge Estates H.O.A.
Villas of Westridge of McKinney Condominium H.O.A.
ATTACHMENT B
Eddie Peacock, CPA, CGFO, Associate Auditor
Credentials/ Awards:
BBA Accounting, University of Texas at Arlington
- Certified Governmental Finance Officer, Government Finance Officers Association of
Texas
- CPA, Texas
Summary of Experience:
Eddie's public sector experience began with an administrative financial internship for the City of
Grand Prairie in 1986. After graduation from UT Arlington, Eddie progressed in responsibility
with the City of Grand Prairie as an Accountant.
Adding further career progression in the public sector, Eddie served with several cities in
accounting management and supervisory roles, fulfilling the fiscal responsibilities of financial
reporting, purchasing, budget preparation and fiscal planning.
As the Accounting and Purchasing Manager for the City of Keller, Texas, Eddie's completed
projects included set up of the Pooled Cash and Investments Fund and implementation of fixed
assets software. Eddie also served on the Investment Committee for the City of Keller.
Eddie served as the Chief Accountant for the City of DeSoto, Texas. His responsibilities there
included coordination of the annual external audit engagement and publication of the
Comprehensive Annual Financial Report. Eddie also assisted in budget preparation and training,
and was responsible for publication of the Annual Budget Document to receive the GFOA
Distinguished Budget Award.
Eddie served as the Accounting Manager for the Town of Flower Mound. At Flower Mound, he
coordinated the annual external audit and purchase of a Y2K compliant server for the financial
system.
Entering a consulting role in the private sector, Eddie worked as an independent consultant for
Reef Management Company, a real estate management company. His work there included
analysis of retail tenant lease agreements and account histories in the recent acquisition of three
major shopping malls.
Continuing in the private sector, Eddie served as the Accounting Manager for Pinnacle
Consultants, LP, a large medical practice in the Dallas -Fort Worth area. While gaining
experience in the health care industry, Eddie set up new ZBA bank accounts with positive pay to
improve cash management, coordinated the implementation of fixed asset software, implemented
State Unclaimed Property reporting, and wrote approved Accounting Policies and Procedures.
Eddie returned to the public sector as a Senior Consultant for Government Resource Associates.
Eddie assisted in completing local government long-range financial plans and roadway and water
and wastewater impact fee credit calculations and reports. Eddie also provided client interim
staff support and assisted in preparing annual financial statements, as well as GASB 34
implementation projects.
ATTACHMENT B
Eddie started his own CPA practice in 2003, specializing in fiscal consulting and interim support
for local governments. Eddie continues to associate with Government Resource Associates on
fiscal and interim support projects with a number of cities. in 2005, he became an evaluator for
GFOA for the GFOA certificate of achievement.
Eddie is a member of the Advisory Board for the Texas TERM Local Government Investment
Pool.
Consultant to Cities:
Eddie has independently completed or assisted on projects in association with Government
Resource Associates for the following cities:
City of Bridgeport
City of Cedar Hill
City of Colleyville
City of Corinth
City of Grand Prairie
City of McGregor
City of Greenville
Benbrook Water Authority
City of Hurst
City of Keller
City of Lake Worth
City of Mesquite
City of Plano
City of Howe
City of Farmersville
City of Rowlett
Town of Sunnyvale
City of Azle
Town of Argyle
City of Sansom Park
Town of Northlake
City of Cleburne
ATTACHMENT B
KERI GOODWIN , STAFF ACCOUNTANT II
EDUCATION
Graduated from Texas A&M University Commerce in August of 2015, Bachelors of Business
Administration in Accounting
POSITION IN FIRM:
Tax and Audit Staff Accountant II
YEARS IN PUBLIC ACCOUNTING:
Three
WORK HISTORY
LaFollett & Abbott, PLLC September 2013 - Present
Tax and Audit Staff
• Performed local government audits
• Performed non-profit audits
• Perfomed single audits
• Completed individual tax returns
• Completed compilations
• Completed cost reports
NON-PROFIT AUDITS PERFORMED WITH THE FIRM
Eagle Advanatge Schools, Inc,
Gateway Charter Academy, Inc.
Goodwill Industries of Northeast Texas Inc.
Right from the Start Nutrition, Inc.
Trophy Club Municipal Utility District
Four Rivers Outreach
Grayson County Health Clinic
Meals on Wheels
Greater Texoma Health Clinic
ATTACHMENT B
MUNICIPAL AND OTHER GOVERNMENTAL AUDITS PERFORMED WITH THE FIRM
City of Gunter, Texas (Yellow Book)
City of Pottsboro, Texas (Yellow Book)
City of Bells, Texas
City of Tom Bean, Texas
City of Van Alstyne, Texas
City of Oak Point, Texas
Texoma Council of Governments
Texoma Workforce Development Board
Trophy Club Municipal Utility Disctrict #1
ATTACHMENT B
CODY CHASE HELM, STAFF ACCOUNTANT I
EDUCATION
Graduated from Texas A&M of Commerce, Texas in August 2016, Bachelors in Accounting
POSITION IN FIRM:
Staff I
YEARS IN PUBLIC ACCOUNTING:
< I year
WORK HISTORY
LaFollett & Abbott, PLLC February 2016 —Present
Tax and Audit Staff
• Performed local government audits
• Performed non-profit audits
NON-PROFIT AUDITS PERFORMED WITH THE FIRM
Goodwill Industries of Northeast Texas Inc.
Heroes on the Water
Right from the Start Nutrition, Inc.
Villas of Westridge HOA
Four Rivers Outreach
Grayson County Health Clinic
Your Health Clinic
MUNICIPAL AUDITS PERFORMED WITH THE FIRM
City of Gunter, Texas (Yellow Book)
City of Howe, Texas (Yellow Book)
City of Bells, Texas
City of Oak Point, Texas (Yellow Book)
City of Tom Bean, Texas
City of Whitewright, Texas
City of Van Alstyne Texas
ATTACHMENT C
AUDIT REFERENCES
Derek Borg (972) 736-2416
City Manager
City of Princeton
123 W. Princeton Dr.
Princeton, Texas 75407
Sherry Howard (903) 546-6321
Mayor
City of Tom Bean
P0Box 312
Tom Bean, Texas 75489
Frank Baker, (903) 482-5426
City Manager
City of Van Alstyne
242 E. Jefferson
Van Alstyne, TX. 75495
Philip Sanders (972) 924-3325
City Manager
City of Anna
P 0 Box 776
Anna, Texas 75409
Kurt Wendorf, (903) 893-3145
CFO
Goodwill Industries of Northeast Texas, Inc.
2206 E. Lamar
Sherman, TX 75090
Lacey Lucas (903) 957-7408
Finance Director
Texoma Workforce Development Board
5904 Texoma Parkway
Sherman, TX 75090
ATTACHMENT D
Meads on Wheels,�"'(__C` :
Serving Cooke, Fannin & Grayson Counties of Texoma
March 31, 2015
Dear Susan K. LaFollet CPA:
I am happy to provide a letter of recommendation for LaFollett & Abbott, PLLC, Certified Public
Accountants, regarding the single audits performed on our 2013 and 2014 financial statements
in accordance with the requirements of Office and Management and Budget (OMB) Circular A-
133.
Partner Susan LaFollett and her staff have demonstrated an exhaustive knowledge of
governmental -type audits. Their staff completed their on-site work with minimal interruption
to our staff and in a manner that was very considerate and respectful of our time.
Meals on Wheels of Texoma's management were kept up-to-date and well aware of any issues
or questions that arose, and MOWOT's management was given ample opportunity to respond
to the questions and to resolve any issues, The fees assessed were well within the estimate
provided to us. We would also like to add that we found the estimated fees to be very
competitive among the firms who had responded to our request for proposal.
I have no reservation in offering a recommendation for the audit firm of LaFollett and Abbott
PLLC to perform a single audit of non-profit organizations under the requirements of OMB
Circular A-133.
Sincerely,
J. Grp P' tman
Executive Director
.t 1 t 4 Airport Drive , Doni, on, Texas 79020 • Phone- 903-786.3351 . Toll Free 877-9003351 - Fax- 903 786 8893 • tiYww.mowot.org
ATTACHMENT D
i'Rt NCr7ON
"'t' err, t —
March 26, 2015
To Whom It May Concern:
The City of Princeton sent out an RFP for Auditing Services after a five year contract with our previous
Auditing Firm. The firm of LaFollet and Abbott PLLC, were selected and the City has completed the first
year with the firm and we were very pleased with their services.
We are writing this letter of recommendation as our first year audit process is completed and went very
smoothly. Rod Abbott and staff were very helpful and knowledgeable regarding all GASB requirement's
and the GFOA Certificate of Achievement for Excellence in financial Reporting requirements, The City
received the GFOA award in FY 13 and look forward to again receiving the award for FY 14.
Rod, gave an excellent & understandable power point presentation to the Governing Body and Citizens
during our City Council Meeting.
We highly recommend La Follett and Company, PLLC for any accounting and auditing needs
S ine>rre'ly,
Derek Borg
City Manager
City of Princeton
Email: dborg@princetontx.us
ATTACHMENT E
CITY OF ANNA
ESTIMATED AUDIT SCHEDULE
September 2017 Engagement letter received and an entrance conference is scheduled.
September 2017 Firm meets with the City's former auditor to review the 2016 CAFR and request
certain workpapers.
October 2017 Audit request list is provided to the City.
December 2017 Firm starts to obtain an understanding of City operations, processes, and controls.
Regular audit fieldwork conference commences as City financial balances are
examined and compliance requirements under Government Auditing Standards
are assessed.
December 2017 Exit conference with City management is held to review preliminary findings and
adjustments. Adjustments are posted to the trial balance as agreed to by the Firm
and City.
December 2017 Creation of a draft version of the comprehensive annual financial report begins
for the Firm based on the areas assigned for completion.
January 2018 Audit Partner begins review of CAFR information.
Early February 2018 City provides Firm with their section of the CAFR. Complete draft of the CAFR
and any management letter is given to City for review. Auditors will meet with
management to discuss these drafts. Our associate CPA begins reviewing for
GFOA certification.
February 2018 Auditor provides the City with final copies of the audit for distribution.
Feb/March 2018 Presentation of the audited financial statements to the City Council.
ATTACHMENT F
BECKY ROBERTS, TS, CPA
104 PINE STREET, SUITE 610
ABrLENE, TEXAS 79601
(325) 665-5239
becky.roberts@rm-cpa.net
System Review Report
September 9, 2014
To the Partners of
LaFollett and Abbott, PLLC
and the Peer Review Committee of the TSCPA
I have reviewed the system of quality control for the accounting and auditing practice of LaFollett
and Abbott, PLLC (the firm) in effect for the year ended March 31, 2014. My peer review was
conducted in accordance with 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
my peer review, I considered reviews by regulatory entities, if applicable, in determining the nature
and extent of my 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. My responsibility is to
express an opinion on the design of the system of quality control and the firm's compliance
therewith based on my 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 and audits of employee benefit plans.
In my opinion, the system of quality control for the accounting and auditing practice of LaFollett
and Abbott, PLLC in effect for the year ended March 31, 2014 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
of pass, pass with deficiencies, or fail. LaFollett and Abbott, PLLC has received a peer review
rating of pass.
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Becky Roberts, CPA
AITACFiMENI' G
GLENN HEGAR TEXAS COMPTROLLER OF PUBLIC ACCOUNTS
The Texas Comptroller of Public Accounts (CPA) administers the Statewide Historically Underutilized Business (HUB)
Program for the State of Texas, which Includes certifying minority and woman -owned businesses as HUBS and Is designed to
facilitate the participation of minority and woman -owned businesses in state agency procurement opportunities.
We are pleased to inform you that your application for certification/re-certification as a HUB has been approved. Your
company's profile is listed in the State of Texas HUB Directory and may be viewed online at
http://www.window.state.tx-us/procurementt/Cmbi/hubonly.htmi. Provided that your company continues to meet HUB eligibility
requirements, the enclosed HUB certificate is valid for four years.
You must notify the HUB Program in writing of any changes affecting your company's compliance with the HUB eligibility
requirements, including changes in ownership, day-to-day management, control and/or principal place of business. !Vote: Any
changes made to your company's information may require the HUB Program to re-eve/nate your company's eligibility.
Please reference the enclosed pamphlet for additional resources, such as the state's Centralized Master Bidders List (CMBL),
that can increase your chance of doing business with the state.
Thank you for your participation in the HUB Programi If you have any questions, you may contact a HUB Program
representative at 512-463-5872 or toll-free in Texas at 1-888-863-5881.
Texas Historically Underutilized Business (HUB) Certificate
The Texas Comptroller of Public Accounts (CPA), hereby certifies that
LAFOLLLETT AND ABBOTT PLLC
1300629107800
476807
16 -MAR -2016
16 -MAR -2020
has successfully met the established requirements of the State of Texas Historically Underutilized Business (HUB)
Program to be recognized as a HUB. This certificate printed 18 -MAR -2016, supersedes any registration and certificate
previously issued by the HUB Program. If there are any changes regarding the information (i.e., business structure,
ownership, day-to-day management, operational control, business location) provided in the submission of the business'
application for registration/certification as a HUB, you must immediately (within 30 days of such changes) notify the HUB
Program in writing. The CPA reserves the right to conduct a compliance review at any time to confirm HUB eligibility. HUB
certification may be suspended or revoked upon findings of ineligibility.
c
Paul Gibson, Statewide HUB Program Manager
Texas Procurement and Support Services
Note: In ardor for State agencies and Institutions of higher education (universities) to be credited for utilizing this business as a HUB, they must award
payment under the Cer iticate VID Number Identified above. Agendas and universities are encouraged to valldate HUB certification prior to Issuing a
notice of award by accessing the Internet (http://www.window.stat*.tx.uslprocurement/cmbl/cmblhub.htmi) or by contacting the HUB Program at
1.888.063-5881 or 51244.5872. R". of/is
CertificateMD Number:
File/Vendor Number:
&HUB
Approval Date:
llra�di 1Me�6nldr 11nir�M �>�
Scheduled Expiration Date:
The Texas Comptroller of Public Accounts (CPA), hereby certifies that
LAFOLLLETT AND ABBOTT PLLC
1300629107800
476807
16 -MAR -2016
16 -MAR -2020
has successfully met the established requirements of the State of Texas Historically Underutilized Business (HUB)
Program to be recognized as a HUB. This certificate printed 18 -MAR -2016, supersedes any registration and certificate
previously issued by the HUB Program. If there are any changes regarding the information (i.e., business structure,
ownership, day-to-day management, operational control, business location) provided in the submission of the business'
application for registration/certification as a HUB, you must immediately (within 30 days of such changes) notify the HUB
Program in writing. The CPA reserves the right to conduct a compliance review at any time to confirm HUB eligibility. HUB
certification may be suspended or revoked upon findings of ineligibility.
c
Paul Gibson, Statewide HUB Program Manager
Texas Procurement and Support Services
Note: In ardor for State agencies and Institutions of higher education (universities) to be credited for utilizing this business as a HUB, they must award
payment under the Cer iticate VID Number Identified above. Agendas and universities are encouraged to valldate HUB certification prior to Issuing a
notice of award by accessing the Internet (http://www.window.stat*.tx.uslprocurement/cmbl/cmblhub.htmi) or by contacting the HUB Program at
1.888.063-5881 or 51244.5872. R". of/is