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Res 081-2024 Agmt. with Edgin, Parkman, Fleming & Fleming for Financial Audit Services 08/06/2024 Resolution No. 81-2024 Resolution authorizing the City Manager to enter into an agreement with Edgin, Parkman, Fleming & Fleming, PC with options to renew for four additional one-year periods WHEREAS, the City is required to have an outside certified public accounting firm audit its financial records on an annual basis; and WHEREAS, the City receives assistance from this accounting firm in compilation of its Annual Comprehensive Financial Report that is submitted to the Government Finance Officer's Association to be reviewed for Excellence in Financial Reporting; and WHEREAS, this firm has offered to provides these services to the City for the fiscal year ended September 30, 2024, at the price of $75,000, granting the City an option to renew for four additional one year periods, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WICHITA FALLS, TEXAS, THAT: The City Manager is authorized to enter into an agreement, in a form approved by the City Attorney, with Edgin, Parkman, Fleming & Fleming, PC for financial audit services, a draft copy of which is attached hereto and made part of this resolution. PASSED AND APPROVED this the 6th day of August, 2024. MAYOR ATTEST: B City Clerk r- EDGIN, PARKMAN, FLEMING & FLEMING, PC Ar;t:!n.srr.nxs 1401 ir..r aar Sr. 216 • P r7 3;,x Ps) MrCruit �i D F= in,CPA 'lvYi tr.r�F r.:; 'r xh3 76R'0750 QAvro L Px,140.1W.n,CPA. Pn (WO)T65 5SSfi • FAX r_4 t A Ph, F tor3.CPA July I S.2024 Mayo'and C ty Council Members and City Manager City of Wichita Fiat.Tess PO Box 143' Wichita Fars Texas 76307 Mayo, Council Members and City Manager We are pleased to confirm ow understaedrrrg of the services we are to provide the City of'.tit'3 la Falls 1 u• lCity)for the year ended September 3C.2074 Audit Scope and Objectives We wit' audit the f nericii statements of the governmental attvrties btisiress type actry:PS ''c '.1]:C ctscreteiy•presented component dn,ts each major fund and the aggregate remsnrng furl rr, ;ice inchurivig the re'ated notes to the Itinanciai statements virnrcn coltoctivery cernprse the ba ,ncia statements of the City or Wicrste Fa is Texas as of and for the year ended September 30,202t ..,..,,...il r standards Qenerarly accepted in the United States of Arnenca provide 'or certarn required suep,emerfa-r entorm..i•or -RSI1, such as ^nanagereenCI discussion and anyys,s ;MC)dAt, to supp+ement the C ty s Lai it ices c mews SuCh rnforrnatson,alttioJgtt not a part of the basc financial statements is r2 ed by In t Gower ',, A;counting Stands-di Board woo considers it to be an essential part of rirancia ic: Inr placing tf•ir _s c financial statements in an aopropnate operational,economical or h stoncal co' - of our erq„;.r',-,r•^r ere wit apply certain limited procedures to t'ie City, RSI in accordance standards r, ;accepted in the Urulec States of Amer-Ca These Weed procedures yell tuns I „Jr of r'anagc--:en' -e areurg Me methods of preparing Ine -formation and compar ng the r,' 11,ii,ir l,)r corsstency with management's responses to ou' nq.rrries the basic finance! stateme`ris :+r.y other knowledge we obtarred dieing our audl of the basic fnancral statements We wile rot express an n)',ron Or provide any assurance on the infor•-:aaon because the',muted orocedu+es do not provide us w.tn s.iffrcent arpproonate ey•dence to express an oornion or provide any assurance The fottowng RSI •s required by generally accepted accounting principles and wLt be sublecled to certain I mired protedu'es, trot will not be thudded 1 Management s ascussion and Analysts rMDdA} 2 Budgetary Companion Scnectules 3 GASB Required Supplementary Pension Informal on 4 GASH Required Supplementary OPLB rnformatior We have also boon engaged to report on s,i`_ •nett.I ^UrrratirY`.,r'r',than RSI prat eccompanres the Cry pf Wichita Fats. Texas francial steterner'i w^,:,tY ;are le t> visited n the form of an Arnual Comprenens.ve finanra Retort (ACFRJ We will subject the I❑ -,.rg supplementary :nformattor, :o the auditing procedures applied In our audit of the'inert:al staters'-s.=--i 'e'tain additional procedures,rrciuor rg compar;ng and reconcitmg st.-n rrrforma:non directly to the a •: accounting and other records used to prepare Inc fnanoial statem-- cir to the financial seatar•ents' ..arise des :3.-y other aedrtioral proced res in accordance with 10Jd1f1^,7 ti as generally accepted tit red SI,...: Aril- e i and wi'i provide an opinion on rt in reation to I'c ual statements as ,•• t for r: J adCidec s repot,on the financial staterreats 1 Schooule of eceral and State Awards 2 Passenger F aclity Crary e :. ted F,nanc.,Y Statements Mayor and Cony Council Members and City Maier City of Wichita Falls,Texas July 15.2024 Page Two The Ib:::C+swrng time' utleetiatiOn accampar'ylalg the Man aa) slaracierrti win not be a:abjected to the audlllrlg procedures applied in our eudt of the financial statements, arfd our auditors repot w+ll not nrovrie a°n opinion Of any assurance on tl'sal irlfcarnat an 1 y{}rril�ini n$arml tnd 'id4,:x1 r{.r d Statem°ent& 2. Supporting Schedules 3, StaUitiCe Clete The oP;iCInee4 W Our audit are 10 Obtain reaskonaVe ess.arance about whether the financial statamrrls as a Whole a'e free from material misstatement. wfillether due ell fraud or error and ssue tilt aaollers raper1 that inoltides our eroirwpa5g epqui whkothor your financial statements are fairly presented. n x I malarial respects.in conlar-ty oath: U.S. generally accepted accnur~:ing principles and Ill reper'L rrn the fairness o" the s,.rppir" ,ar:ary inf ma}ori retorted 10 in the second paragraph W'-en considered in re.a'ran IO Irw financial State^"ri'nl as a whole. f erasonable assurance is a high!eve!of assurance 4LA os not abscsele assurance and lhece'r'.: Is not a guarantee final an audit conducted rl actordarrue wlh generalry accepted auditing standards and i";.°..r:,rrmerfr Ai Cftr,rg Sltla1C1'f1FJS will always*elect a material mi=_statemenl when it exists 6rirsstatei'1ehts. lrc'ur- a-ssica^s earl arise from fraud or error are are ct?rls'de ed mete•'a'.r:here is a snatastar ial likelihood lh.l r:l in the aggregate, Llley wCta'd it U rr[a tfhe judgment a'a reasonable user made based On the lnancw ;craters enis The objecl:res also incaude reportint on * I'uI..... =intro over,rrarrcal reeorbng and corn uance with prov%ions of laws regulair0ns,cotlrads, JI'S award agreements, nonCAe'pl:arce with weiCh COutd have a material ereCU= On the firanc:al sL-aLderients in accordarkte with Government AudNerg ▪ Internal control aver CrUental ante related to major cmgrarrs and an coir on(or c sc:a-nr a`opnaon)On compliances with root-sal statutes, regulations. ao rl he lerr*'s raid cr:-' :I.ur-:,, Zr' it"=!-.o icvrde GOI-11,0 have 0 direct and material eflect on each majc. cmacra- in arca-canoe wi:h re."Sr a a Audit Act Arneridrrier'1e Of 1996 end TOO 2 Cr$ Cade Jr ra::Yrleur P.r"I Adrrctmtiva Pn,7i,,:rrr nenf3, COSI Terr70fitrn5. one' .1.1.Rocueers.rorres rot ::te:r w,, r,:l _Jr form 04r'r°.1r k�.the Tr x.rs Singe Audit Circular,and:'ae r';tasorge°l:e_II'.p't.ha'yu :°.,...I': I:: 7'11 14, AgE-cle's Audi Res ponsibIilitres for the Audit of the Frrrailci,il-r,ai::II I"IN roil the Single Audit 1Me wr I Cxlndu,G Our audit in Accordance with auei:^p -•:r,. I, ,;. }orally acceptedd in the I,,h,:.ed Status of Amerce: the standards for Iirrarwie Aits coo;�:"..e: .. - .,rrr of Audrhng Srapnprrrrr:, suer, r,y 1ne Comp;rolter General Of the Ur Led .Slumi :r°e S. :e AL] :1rrarrrcenrs of 199i6. the LSrposioits.oil Llte LJ"iform Gu lance.Me Texas ::; ,. ;° A,.: r.... :i' aid 1- `aacrr; r F;."d iy Charge Audit Guide for PUI3ruC Agencies and'Ihll'ncluca'4'a'.'S J' Y_ ":.'l '_ 4rds,a deLem'..: 31 +,t: lnr nrogram(s)ir.accordance win Me Uniform Guidance a'rl v I$,x.l% t e^ .."dd Cireu ar art': :s -' p'v:r~ci.res we cc•sider necessary tG enable vs to express st.,;r' opinions /- i:a': cd ii ,. aeec :,r_:: VIM fir: r: .vrx ale.44iptecl au(41,ifig standards and Gorevnmr'r' Atedifing Sts,OO.C.t. wO vxir;se G Ct'ar c'ia:,Jdgrnern asd manta n professional skeptic sr•'h•rsug°rout hie::r,efnt 1/Ve wt. evu'uiile Zri0 at:;,I,:;:•.r.,. ,.,, or r, :r,,.o,', ,q pc ;,,,,'s used and the tea c',rb:rr,^.eas of significant aobbu..:ing es:maies made by me-acamfirt ins'r h.,7L,a'G the owero fret nta'Cri pt Lie `rnanc/al statem•ertts.irc.ud rq the G`5GORurri,, : ":r ti,',•,,:':•a.'},•°,,,, I n:ancial state-rr eii'earesent the underlying transactions and evc-1= 'n a man"sr That a--a'.°FS f3- ::'r:5;:'I31;anVVe viol, trl0'1 ;1'rl perform the audit to obtain roasor+abie ussu .1':.,',lne:u'r•l'a•I'terr 1'i: 'ir c ;a;r a r • 'r,r,I4:are"roe of r';ttel I I rpisatatemeni,whether fr4"11 (tj errors, (2) tracu+.;ic... report ng :.3j mis:al-or::''Ir:-'- ^, °irF.r-'S or (6I woiationsof laws or governmental regulations It'ri LAC.irL'Ib,;':rble: !c.Inc:entity Er E. .l::'. i:', :e-Eigrirnent Oremployeos ectng an tehal` of the en:rly Because Me deli° .' waste E-r_ aerie s sJbjeciise, Gove.rnrrenr Aw1lrar39. Sf areeards tfd riot expect audrlors to per.- sf :r:I. raracir:Ir,' :,:S:::tix.'.wr:lele Or abuse rn linarncal audits nor do they expect auditors to prciviee reaskts,nr.,r-.r r,i. ":1i,e :su't.;l.Ir:; krus'rs cat abuse. Mayor and City C. ulled Mee/bars and City Manager City Of Althea Fails,Texas .191y 15..2024 Page Three Beceure cf the inherent IrmIldhons of riii wz!1!",1-,q.• m!311.011.1 of internal control, ed necause we will not perfo:iii j Jc.a F unavoidablenk Carat SOrre IdLerpal misstaliorrentsor "1011QC;1110 :!'•11.4!,741 L i., rJuIj hough the audit is preptrly Planned no oerfomme riaccurdanco 2.•i LL al E:ceplErd auditing standards end Government Aux/lbw Standards In addition an flL.. • .:: dczuc;:r!nrakericil thissta1rrier0c.iyietErus Of laws.or governmental regulal 006 that -Luc ;..1Ji Era material effect on the financial statements or irajOr sregraMa However we will iIr: logid of rnanagerwl.or any rrialur i orrws. fraudulent financiai repcdirig.or rnii-atiai0V 0i:or !hal OcieVe tO bur attention. 'No will esio iricr-- ;re apprOpriale :ravel Cif Me-apemen; of any viola! haws or gl:QUerrlffigntal fi9Uiftti0r6 .11110 !C: : attention, uriess clearly incon-aaquential We will Sutn Maltena in the moos •!...„:.1 Lui ui u -Audit. Our reSparSiblry as a...I:In:a is lirnited lo the period covered by ow'audit ants ,i•y later periods fo, tgagea as auditors i.11Sie Cenci CLiso..1 o tie Audit evidence obtained, wrether Sniefe ere comblions Oi the rv.;q•r.%0^.1.;..—07 racSi: .V.,rti*tairitial doubt abod the governr-enfs ability to continue -1 . cir i,rne Our h.! mJude iitti7s Of dence supporting the transactions •ocorceo acts phisicw eximPir.e of river lonca. vd direct coolitriabon of recavables and ceia 1ct-E- SISSEI;L .1. t ER...Med individuals, funding sources ored tors and rl5f,Lui:.is 'Ne Ali. a so request born your allOrtieya as Part of the engageMent, and they may bill you rot responding;r:!•••,Lt Our au•dit of the bisects blabements Poets nol follow)you of your responsioilitios Aud It Procedures•I ntarnat Control We rill obtain an understanding of the igowrnrnerl and its envirorwriont. inctuding Ire system Of internal control aufficrient to identify and assess trio risks of material misstatement of the f.naicial siaterrents,whether due to en-Or Or fraud, and :0 design and perform siidit OriXeClUrell reSpOriSivie 10 those riSkS sod Obtain evidence teat is sufficient and approonate to provide a 0-ass. for Our On4nierlis The risk Of not detecting a matCria migvIalemen1 resulting from fraud la higfer that for one resulting from error, as fraud may involve collusion forgery.intent onal omissions,misrepresernalw,or the override Or internal contici. Tests of controls fray De performed to lea; the effectiveness of certain centrals that we consoler relevant to Preventing and tfeletbilig errors and franc :oat are material to toe reeil statements and to pi:even:16g and detecting misatarenlente reaultirilj :ega cols anc other noncompliance metiers that have a direct and rnao,noi effect Del tub Ma-curl sLaLorrontis. Our rests.if perFormed. will be less in scope Iran wou'd be neoessoi*j •.o render en opinion on internal corlroi and. accordingly no opinion OH be expressed 49 our report on umeiisii CiOnlf01 I Sduad pursuant to GOvemrnenr Authnnig ManclafoK As rewired by the UnifOrM Guidatle,the Texas Single Audit Circular.and the Passenger Facil ly A.:: Guide for Public Agences.ii.ve will perform tests of coral:era Oyer=reliance lo evaihate the eFecil VSnEFF. 1 the design arid operation of controls that we consider reievant to preventing or detecting .i. roncompfiance writ- compliance requirements apploabe io each Meyer federal arid state aiii•-srd prog-a— HOwievee. Our teall will be lest Step&than would be nocossary to render an opinion and, atooroingly, no opinion will be expressed in our report on interns control issued pursuant to tic Uniform Guidance,the Texas Single Auld Circular,and inc Parisenoar Facili;y Charge Audi Guide for .Agorces An ride L is net dosignod tO prowdo assurance on internal control cc to identify significant corium-loos or weaknesses. Ac:c-dircly we will ecoress no sucir op on However during the audrt, we mil corm'!"i-nicate tO thanagrineri: art; Incsi; ithar9cii.:: with governance infernal contro relaled matters that are 'Nuired to tie orjnrlm.rn CO'hc /uiCPA nrclossioral star-ie:as. Government hIdIng Standards, Ine Uniform Guidance the Texas Singe Audit i.: L'infW11;14;1 VCillY ,A1.4,1 Guide for Public Agencies. Mayor and City Council Members semi Cily Manage( City Of 1i'ellchita f`ails, Texas Jury'15,.2424 Paige Four Audit Procedure's-Compliance As par of pinta ring •easonable assurance at30ut whether the firranCial etalkments are free of material rissteremert.we will perform tests or the City S Compliance with the proves ons of app cable laws r-eguranQ1i . d,Orrlrllte. agreements, and grants However. the objective of Lhoio procedures u'.l, riot tsd 10 p owrdc an bpnibn Cn overall comupl ance and we wi i nor express such an Op(HOr7 in Our rear on Combi•ante issued pursuant to GO1rrirrlrFJtifrf.TM1 Staredre+rcfaf The Urr form Guidance 7h0 Teias Single Audit Circular. and the Passenger Facility Charge Audi; Guide far Public Agencies require gnat we also plan and perfOirn the audit to obtain reasonable assurance aisroui whether Ih avarbee has complied with appwcable federal Statutes.regi.ailions. and the'berms and conditions o'federal awards applicable to macs.programs, Our prorrepures ywdll con-sat Of tests or trartsart1iln3 and aline applicable procedvree described ill the OMB Compliance Supatemerrf for the types of compliance requirements that Cove have a direct and material erect on each of the City s moor programs For federal prr.9grerre that are ineluOed in the Compliance Supplement. out OOmpliar :e arid inttria tritrd procedures aaiL relate to the compliance requrrernenls the' the Comp'ance Supjr+imer:t dentilici :is being subject to audit. The purpose of these proCedureS well be to express an opinions or7 The Citys cc'•;;ia'rr:e with requirements atdplicabie to each o1 its maple programs in our report on compliance issued purse.....' iG tINe Unifenni Gvellinoe, the Tes&e Single Audit f;irdolen,and the Passeenger pooh dy Charge Audit G4ide'c-Pt. 'c Agencies Responsibilities of Management ment for the Flnaetir.ial Ste ii iiirj nts and Single Audit Our audit will be Conducted on the basis that you ar:km'iIa:.:)e and underslard your responsibility •or (') designing,implementing,establishing and.ntaintahni:rl c:lri• Controls relevant to the preparation ar cl far preserrtanon of F:na'sG81 statements than are free from -Moral misstatement.metier doe 1v fraud o'error. inCludng internal contraw over federal awards. and for ev;llualing and monitoring cagoules adivipgt;. ttl help ensure that appropriate goals and ablectwes are ni.eet (2)fallow laws and regi,latrons,ti.3)ensuring that there is reasonable a:tsurar Taal gOvernment programs are administered in compliance wnlh compliance requirrentettS. and (4} w xJ•rg that management and financial;nlorma1ion is reliailie and properly reporter. Management is ar50 res:i:'isCle for implienii--itir.: y^tCma designed to acriieve compliance with applicable laws,regulatons,conlw.-s, are reran'agrebiryrli w. a'u also resporsble roe the selection arid application Of actotlntirg prirroipleF, 'c- ,~e l' r.3r c., .:r,C 'lr' a'es01.:a1cwr Of the lirrarroal statoMerts. schedule of expenditures of federal a:^J SLAu iuhart-y rr:<;.7 ..^.'::ireljiartiyor ir.1Orc. l 811 in Cdrhldemily with U S generaly aOCepted aOCesellting p;;-cip•es. and for cvmpl ar• - art- apvcable laws and regulations (including fede'ai Statutes), ruled, a and the orov Suorrs of conlrac!s 'acid giant agreements (inducing award agreements". your respoinibilibes alto include denifying sigrsTios,ni cortraclo- relationships in which the conaract4r has r poar0iblhlyfor pit grant compliance and fen the accuracy and compaereness of That information You are also inxponaibls for making drafts Or financial etatementa, schedule or expenditures or federal and slate awards all finaritiai records and related information available to on:for the aaiilracy anti COmpieler'ress Of that information finalud ng inlorr'anon from outside of ;he genera and subsidiary ledgers) ale fear 1'1e evaluation of whelrer there are any clnOitions or events, considered in the aggregate, that raise substantial dout}I abed the government's ability 10 cormr.i.ie as a going concern for Inc 12 months ader the financial statements date or shortly thereafter YOu are also responsible for provioirg us with (1) mess to all information of which yeti are aware the: id relevant to the preperaton and fair presenlalron o'1hS financial S18ten're+StS, sucli as records, documentation, identification of al re nla=:7 o7.rie5 and all relaledrpaily relationships arid transactions.a)access to persorr1bl. fiCcaurts. book . :•r,r-; s. :C t erg documentation end other informaton 85 needed t5 tier eo-f.,0i JWu I _.ndec the Uniform da°_ca 3) a_d'.ic^a' information that we may request for the purpose cf the aud,: arr.::4)unrestricted Cc r i tr;vr: < {+ •i 1'.,°;jovernment hem whom we determine r1 necessary 10 obtain await c:r crime AL I'h conc,us cr ,.;r Li.. L c MI require oertair wrrflen repreSe"l l ar$ f.orn you about yot.r respors•b sties 'Cr it's f na rc.i; s a r e Ft. Schedule of expea5ddurres 01 teoeri,e a ;t awards; federal award programs camp anon xor r ',.lira regulations, contracts,and grant agree--1'n:n,.7•eratan-natters Mayor and City COurrCal Membera and Cfty Manegler Carty of Wlchita fora Teams Jaty 15_2024 Pege Five Your responsibates irrdude. edjusttlg the financial Valor-vita la correcl material nt%statements arid oo7nhrmirg to us in the management repiresema1IQn letter trial the effiC.s of any urltOrre ad rhwssLal=mer:s aggregated by us during the curre,`rl engJL rrier•.1 arid pewa.nir g to the tales`pei oc proser!cd are riff`.atr n0;. both inorirld_ially and in the aggregate,to the financial slalemen:a of each Co Ilion nit 1UkU'l it n1;;lc Yqu are resporraabte for W:u design and inlplenrenta:or of programs and COrlrols to present saki CCtdc:rra c. and for inic,ming us about a krber.or sLii pN t1Jd'far::J aftracting the government irruc vine(19 ' in:agemerl (2) employees veto have Srgnitica rifts In .itorna cortrol and (3i c:he's iiimere She friird could have a Material elf Ed on the financial sta:emr.iIs Yt',A'rrrSporrSib,trbgg nCluvn ill^-,uig us of your knowledge of arse altegalians of fraud or suspected Paoli a!"ucgi j the government race.re• r communications from em•u.yees, f[rmb-eiv.p1oyouS grarlors regulatora or others- In audit On.You aria r,..a;,{ar5ih'C Fdr'den':.r:ng and erisiurivg Mat the entity complies with applicable aims, regu.aboris ttariUacLS aisle_ '_rs'.= r:_°a :5 Management',s also reasons blrr for taking tin-ely end eppropnete steps to remedy fraud i•;,• rr, sir y W li-i 9rovisions or IfivS, regulations.contracts, and grant agre•enaentS Or arise that wit replvt. A:Ji.:orrally,as regJired by 1'bn Uniform Guidance and the Texas Single Auat Choicer. t ig manargerrlenrs r rpaSrtaiity to Ov i e er,y mender nofitompi once with federal statutes,Fegulaforl3,and the terms and Co-...;r.:t tors ar.'sclera'awards.take prompt liedOn when ir1ttarcCC el nencomplr.ance are identified ire•uding inrcernbliance rder4410e rra aut': f ridings prdrfiptly f011ow up and take oorrectrire action on reported audit flat;r jr urd pru late, a sr.r'ima'y schedule of prior audit 6ndinga and a separatO Corrective action plan Tie summary schedule of p',u auJ f ridings should be available fO.Our reVlow at re completion of the audit tiemP$work You are lest:ors:bre for identifying .rl f;,;i:. .lara•ds ieceived and understanding and complying with the COmplie-r:c -3cairements and for: 'a C = rr . r:' r i achie&Ule of expenditures of federal awards(including notes a a; : ",.:. irti iEtCr OLr rucx. ;r.:i :.rr. i'.(''d I: 'J rtdotcd concepts. such as!col revenues.if applicable) /nit') e Uniform Guidarr. `fol.;;:free'ko IfCI,,CfRy :1i,r repc'1 On be schedule Of expenditures OJ febi::i.i: .rw t.. fr° ,cr: e![ii:uffert1 tf ai I ir;.r .. r-i1 ;i5::. that we have reported on the schedule of ead?r-io,';ores , I ''rra'u awards. You al.=.a .ri :i,• tie audited firiar►cial alatomest,s win any •,,•.,Jue or exurb":,i,icr,c of rede•a' awards That includes ow report thereon Your repoo"a balitre:; to us n:he wri tern representation letter:t'ai 11)you are re2sponsiole 1Cr r-r•ft•r'ation al the:schedule Of expendlturos Or ri dlrrral :rv,:irds in accordance with the Uniform Guidaree. (2,) be::eve:he scltedu"e of expenditures of Fo:iL'al awa:cs including its form and content. is staled fairly it ,:.--Uordfanrra with;he tJriiform Guidance. (31,1 •-•c^:notLs of measurement or preserilalion have rot changed horn those used in lrie prior WOO ter, If they hive e:hanged,the reasons for such changes). and l4)you have CliSCIOSed fa us any significant assumptions Dr rli :`r.la, rig unAoriying the measurement or p^esentalion of the Sdredule of expenditures of federal await: Ydu are also responsible far the ^rift, .sf r:' air '.!:d l:.:her SLpoler-rrltary information, wh.oh we have been engaged 10 raper:on. in cor.r_rm 7 'Nil- ..1 :r_,r:rally accep'e0 rcrnrinling porticipteS YOu agree to include Our re.obit On Ihe si_orerraril;e'•r i. ':........iri i i f<:::,•..iriterl rl 01 ,:r°;iris ard rrdicales trial we have reps eo, on f r Slli r erri,,.,any. inidrraatic Yet. =Bsc .?ar :o inc i.cr ern 3V.1 ted financial stateamerhts wit, any .';;raolementary nr:, :rr:iir :I_i ueea Our nil:+:1,theredr Y0uf rettpCinsibilitics nclude 7.:i}c:,•sdgirg 10 ,if r' the written rely...,_,r.,a',cr ;ire that :" 'ter:.. are reaponaittle for presentation QI t e alit r""crlllly inlormalxon in accordance tiwrl :;r"u1i' di Y:li. I.:"I:'4'r-ine supplementary Irilormal, , rd_Iudr_-g ... 'Orr and content, ra tarry pregented n acco•cerca with GA4C: tail the rnetnods of measurement or ;:•r,klrrr'rerior,halve rot ohangea from those used in the prier pis.ae ::•:fry nave ceangad, the reasons for -,c-an,gas:,' arc (G:i yOU have oISCICled to uS any Significant assumptions or interpretations underlying the ;:"rr,•..:i rru f c•Drn~s.or atior of the supplementary al-formation na nio rrs'T"n for ectabl sh nn, and maen!arning a process ter Iraccog the Sla'lus OF audit findings •: rift:''i'}flit''}::arts Mar age-ant .:so reaponstile for identifying and providing report copies of O EVdOLS I )r'":,a 'i I i, r,r;itir'7. ,l., shows related to the cojecti os disevSsed in the Audit Soup° sir:d •:#,. +,;4r4 .;" :r s 'u:c . Tr a resconsibilily rnCIU4e5 relewir to VS COrlieCAIVe aCLi0e3 Lake.i kc avdress s grtiica^it fin b ngf and'corgi,-,, .,,.fait: i:rusulling From Noss audits or other engagements or studies You are Mayo'aria Cdy Cc•.nciI Members old::ty Mti'altci C,ry ua Wichi f a •Texas July 1f 2024 Page Six alto resooristble for prow:ding management's vierr3 or'+ our Current tirdingi. €enclusions and reCCelmendatiOng.aS+rrel' aS your planned corrective act one far the •epaart and for lie liminQ and icrrrial for ptotreriing Mal e nelion (War SoMus We wdtl sass!in preparing the fiinarcier statements and rotated notes., schedule of expenditures o'federal ard scale awards ire passenger sacitt ct-.a•ges audited financial statements, and me GAIT 34 Ccirttrers.a]ri n ccintorriiity w Ch US generally acoopled accounting ppinrplet. the§ Lfrifenrr Guidance the Texas Single AL di Circular.and the Passenger Faciaily Cnarge Auct L Guide ler Public Agencies based on information orcrierded try yew ThoSo ndnaudit services do rot carstilute an and 1 upper G overrl,rlpnr Aurfirr.19 Srarinlortr and Such services will not be conducted in accordance with Governnaeint Auchr.r,rg Senesces We veil per'Orhl the seroices in accordance with applicable professional standards The oher services are limited to the financial statements. scheclure of expenditures of!Moira ant state awards and related notes services prev.oi.4.4 def nee, We. in our sole professional judgment reserve the rrgghl to refuse to perform any procedure or lake any action that could be_ursirued as arssum,rvg mainagerrlent respot,tibi flies. You agree to assume all ..•.eragemert responaiN itiee relaiii g to Erie f iunicial siulbrecnt, schedule of expenc,lure&Of federal and 4•'a'c awards.related notes,and any other raora,ioi1 services we may provide Yes, wall tri uquired to ac$nowlac_ :1 twe manegerr'er1 repre9eieLalren le ter r our ass,,sianeC with prep ?atib^1 of the ie•ltertr. r. 001 crozrtitures Of federal and state awards, and re aced rides and that you .s;• �•,��,,,•d n,:-,,r.:',s.,.:, 'na r.",arcal statements.sehedu•e of exponditureS et fedora and stale awards, :i I-ie.r issuance and have aocepLed responsibility for them Funher, you agree to P.ve•'.i+••li:" ••'n:1.::I '',,.••aims by designating an in:Invalid) preteraby from sermon matagernent.with Suitable sled kr),vls::e c-rxrs:erg:evaluate the arleguaCy and results of chose secsices;and accept responsibility for Plum E n jagemant Adrn n Istr#GQrk Fees.and Other S^le unrferstarml that year emproyees will prepare al.,cash Or other confinmatiorla we regveat and wIl locale any ckYCulments selected by eat ler taking. #1 me c nrrt.:ion or the engagement, we w ll complete the appropnale sections of the Data Corecbori Form a 4r—.ra•rec :..° sJd,t 'Srdings tl is rnanogerrtenrs raSprpnSibr,rly to electronically submit the report rig aacisaage ;ire.,:,,six.; I na!sCial statements. schedule of expend+tures or tederel awards. summary schedule p1 prior audit ir.d;-,p-. :3r.;,�ors"repo s. and corrective eoiier plan}along with the Oala Colledicn Forrn to the 'Mere auc.a:l :eal. a°is.:ae i.1t a coordinate with yeu the electronic submission and ce+l,fcatien. The Data Ctll c;' ., I rim a„-d tie rep:rt rg oecsage mull tie submitted wimp the earlier of 34 cater dar days after cet:,A the wi S:'.5: s fe ns or ni^e nmr;rlths after the Budd of(he audit idenod. Jfe vr,i p J,Um COP cs or ou rEixrts :c line City, h0wever rranage.rrertl S reSp inSib'e to dlstrbution of the re)orts an.: the linar'ca slatements Unless restricted by law Or regu'alien- Or C,erltarrt,ilg privileged and corfidentiei informatics -its es ol our rcsy„La cirri Ici C:o-!made available for public inspection, Thtr a.rd t dc-:'..i,,,:i:.i,; w l^is a ' sac rr'or!La the pruI nr.'+r: Fd,ro Parehan, Fleming&Fleming,PC and n41114'es r r'ic. .,.it3 r,7i' 1:rn However.wever.subject to apolicable aws and regulations,audit occur vitation and span.;i rr• ,71dp available upon regutlal Ord r a iiwfiely Mann&to a grantbt agency or its des -.ce .3 fec=-.31,= zit:.. :ii k'�, :rig direct b urid=rect funding or Lie U S. Government AccourraUili;y Office fOr p1.a p i�;.i:lr -r':�:: c ,f '1C audit.to resolve audit frmdings,Or to Carry c)Ut O+rerttighi reSpprisrbilities We w,,,ratify you of any s;.r rary..asr If requested access to such audit documErltatrbn will be provided Crider the sUpervisi n C}f Edg ',a ..rrlaa Flerrlirigg $ Fleming PC d rsornel I wrthermore., upon request,we may ptevide copies of selcc'_l a .L hePJmeitaric:n.y r°1r aforementioned parses TI1e5e prarJes May intend, or decide. 1q distn44te 1^4 cve.Us 4' lairs:rmallon comained therein to others, maludrig other governmental acerliprgs Mayor ano City COunCrl Members and City Manager City a"Vinchaa Fatts.Texas Jay 15.202d Page Seven The audit decumereiaLion for lh14 engagement will be retained for' a mirimurr.of hue years after the report release date or kr'any acUI°i0riel pc'Iod•equested by a grantor agency or federal agency Owe ate aware hat 0`ed0ral ;►wardong actr 1Cy, paea.trirougl`entity Or auditee is ConteStng air aUdIS rintling we w`I contact the parties conresbng tie audit finch ng!or guidance prior;ip deVroyrng the audi:documenlabon Mr Paul Fte rig, CPA. is the engagement pa'tier and is resapor7Sebler 10r supervis:rg Lie engagement aril egahing the reports or au".hona'Ince another:no.io'.le :p sign ihs' 0:ar Interim work is LOr^1O vary SChedureo 10 be pelfor'meo in August?074 it rh year-end w;,rts to lentaterety begun in early Jan,,ary 2025 We mil Issue cur i peels-n March 2025 ilg So, °j/`I. ,u:. :;I: ter. = derwi arid inte'Im b IIici rrsoy 00 subrri lled as warts progresses and expel-'r .: _ I n l_I `.r I s engagement, writ be $75 400 This tee s based on anticipated ccope-f::hr Sii _ri - :, I :'I of ;.y—ption that unexpected ci'C4ms",ances will rot be enciwnlered durir• 'ri I*.I".Car:udd or al t me is.necessary we will d scuss 11 w+ln you and arrive at a new lee befiurt ,,'it_, ;t a additions costs II vie l:. .0 •,rov'ec5y,o-slain arises.envier party ray.Ups written 110110e:0 L114 Other party request that l`8 r',i;tr;r :. ^••i:liatetl Such mediation will be concluded by a mediator aptSbir1 od by and p-rsja^1 to the .iles c'tie rrime'cen Aftii:ration ASSOCiatitin Or 5uth tither neutral facilitator acne i lap e to:73:h canoes 3oJi i..e•I I•^., •.r,l! Irxert thee t:,.:•.i efforl5 l0 CAICU s wllh each 0lher .ii geOd ra I'i thei- rr,:.,p .cl rr• p'os hors ii an attempt Lu!wally reSOtve such dis iLte or controversy Each party may daisicsose any facts to tie oiler party or to lie mediator which It, in good faith, canside,s necessary to resolve the matter All svcll disc Ssiuns. however, wilt, be for the purpose of as5.5bng Ir! settlernerI e`Icrls arid'w.l not 4e admissible in any s,iosequent tingaiion against line disclosing party Evicepl.bs geed y ::I`I I::;I ,eg tyb, r-ad etc.will keep conlfrdentot all information CliSolpsed during negolaliars The reediagor rind, noel t_t i.1_ either party ir any sibseg•ieril arbitration between the panes hr r,'C lit I i. iili};eeatr'g$wI conclude within sixty says from receipt of Vie wilicerl notice unless extended ci lc•m,natea scorer by mutual consent. lach party will be respansble for its own expenses The lees and urses of'.he med•abor if any v,...-1 be borne equality'by bie parties, .t.tpute :,-, cannot be resawed Oy rnediatiol„ Mtn the dispute, controversy or clam s ir.seine. .. :::;voidance with the Rules of the American A't:iitrati ri f• st c ern{A441 for the R,:<e;'I.°:Ii Itt it lit q F ire,+ Disputes Na pre-hearing d 9:rawery wi I tic tern.I]..i .,nless specilicatty _.. e. :y the arbrraolion panel The arbittatiolr hearings will take o'ace r L-c r.tr ;'asest to tie place leis t ' .Ibreeemeril w i p rfoseed in wheat, the AM maintains an office I;rl nss I+ie startles agrcra tb a drffere The ewarr. e l :; ':„ u a :..utibn panel' may be confirmed in a a;idgrne rt dy any rudrrat Or state court of t<imGrelent iii-rso c'.cn All•ieasonabie costs P!'both parties.asdeeurnine0 by:htl arbitraFOrs, ins r:rig ra)the lees and expenses of-ihe MA and the animators aria 12) trre costs, includi.g ressonspfe anvrnery ' Ire g. necessary to Conform the award ir court will be borne oniireiy by the nonepreia<r^ng;ivy ,iv be racsig railed by Ir,E arbittatitin Oarn&in the award)and may not be a Ocated between tie parlle5 oy Lhe arbitrator pane St-eh arb tratron shalt be binding amid final. In agreeing to artetralion,we both aCknowl*dge Mat in the event of a dispute over fees charged ay the oCCPstan:.each of us is ring uP the rght to have the r:ispule deci0ed in a x+;1'1 of taw before a judge tr bury arid Instead we ale accepting Ina use of arbitralion fax resoluilon. I enori Inr') sx^: stiue willies,recoils Joori cohhp•ehort of our Seigte Audit. lD-.:•reports swill be a ridre5SiC to tie Mayor Council of the City of Vikhile Falls. Texas. CIrc.Imstaricks may arse er wl=b oLr 'epr t -ray a her r^,, expected form and eonlprit bated on the reeu'le ;i" Cur audit Jeperic rig or me na:Jre vi liese and Cty Council Members and Oily Manager City ot Wichita Falls,Texas July 16 2trz. Page Eight circumstances.rl may De necessary f or r.; Lit... 0. adc ar Qmpha5.15. of-mailter cr orher-marter paragraph to c.r at 7. c De-. ' ••• t i.jugemer.A.IF our ap.proris are°Tier!Ilan ll-rinad .tel.! • h yc. .-Dason,vro Sire otatile lo complete Vie audit Ca ate L-ab 'c'7 C.' -3';E 'owed cnir tris...ke may oecine cecol was opOliOns itir issue ireporls or We may withdr,iw The.Government 111.idgrng Srawdm.nis reP0.1 k• •It.• !'1.11 Cprvar financial reporting and cra 00rrip-13-ize and otner mallets will state rhot :1)IN purp::: c .."112 ',2c01. aolety to.describe:he socceo1 testrig of internal COntrOl and compliance and the results Ds .r... •iat 19 nrovide on 00in On the ternereness of the entity's interral control er on corripijance, i..TV irX ilicTa 1.w1 cl an aJc I erly—ed in accordance with Govurnmprif AerMeing PrAr .101 ; Pi.• COntrIN a!!': The Uniform Guidance repnr Qn internal' Gomm' over compliatat tne purpose 9! ...e recort or internal u-0-11101 ova-compliance is solely to describe the scope•Dt ciyi• compliance ald Iliarust ts DI!hal testing based on the requirements of the r.'II satin that the reportrepr i fiat%Roble kx any Other purpose GQi.WRITterg AIM/ding r(Nilire that we provide you with a copy of our most re:aani Piernai peer review reps arid any Of comment, and any subsequent peer leyio.to twirls end ieriPi. or ceintrneet received dunng the per of t^ie contract Our 2021 poor review report acoomparilea tars lelar Ve appreciate the opportiin In De or s.ervrce ICI the City 01 Wichita Pals. Texas and believe 11-s letter accurately S^.;11n1X:ze?, ne $.91111(.°1r I crgagcment If you have ary queshens. please le; us k-cw. l yo..area with Ine terns nu,enqapame oe cescnbed in it•is please s g-the ac used copy Lr-d return I to Jh Rosocchli.iy subrr E At"-, rociN pARKmAN. LEviNu,A.II[MING. PO aenfied PL.c c.Acccorams RESPONSE The!met caveat,eats forth the UnderStenChrig 00 the Oily CO'WiCrilLa Falls,Texas By TM' Mapr Doe: By. Title. City Marooer Date: t3ol.1Nt;i:li, Sikil;Ale4. (:Il.lIKttT& Ni014:4, L.L.P. •••w'.r.t• P111•LI0 *@O*U TAN�■ PNDNI.1.O411I YA7-1.O• ►AfW 111061 9•7•••1• 1.8111 II.ar AVtrOt i.l'NNLH"k,TI.xAII :9441-rr+sr Report on the Firm's System of Quality Control Ma,. I i ,_... To I e Snarerio tiers of Ed; 1 Park man,Fleming& Fleming,PC and foe Texas Society of CPA's Pee, We have reviewed the system of quality ct: Li for:ne accounting arc audrtirg practice of Edgrn,Parkman_ Fleming& Fleming. PC (the firm) in cfle r:t " The year ends;} i)r•ccmber 3' 207' C)Jr peer review was Conducted in accordance with the Six' I:L i!_r ''F kiting or '..r.r...V ews estabtrshed by the Peer Review Board of the Arnencar:nstn.,te a+(:erlr.,;i Jf)ipc AcCounf59-,s;r;r.�ndards) A summary of the nature,ob)ecirves,scope.limitations of.and the procecii.r, i.,•.I:••r-•,d n a System Review as described in the Standards may be found at www a.cpa.orgrprsumrna-, '.r ;,,••inrary also includes an explanation of how engagements Identified as no', pe•formed or •cl: r :+ ri -y with applicable professional standards,if any,are evaluated by a peer reviewer to deter^Irne a Gee, rev ivr rating. Firm's Responsibility The firrn is responsible for designing a System of quality control and complying r:rtPi t to provide the firm wait reasonable assurance of performing and reporting in conformity with apptirabl•-r rnfessional standards in all m atenal respe•cr•, The t r•r is also responsible for evaluating actions to F2i:., al; .• . .ate engagements deemed as no'c 'fyrr.r_:.1:Jr reported in conformity with professional standards wnen appropriate and for re,r r f.o!.- ti ,:r r r I is system of Quality control l any Peer Reviewer's Responsibility Cur respr,r..1 ,s to express an opinion on the 0' "ii .y,!r.„ .•I rainy control and the firms sorrpl arrc ri,erewitn based on our review Required Selections and Considerations Engagements selected for rey e.v i•sr•4•4ka:r meager tints pertdm e:;:.r : - .a.,t r Auditing Standards, including a compliance audit under Pr sh .Nijd t Ara As a part of our peer review we cansidc-p..-: '+.i-ws by regu'rrr,i•,, frr ,'r•I ,!,, •:r+•nr-rsiniCated by the firm,if applcable n determining ilia^ature and r,x+.,: r:.f our proce;d„r,•; Opinion In our opnion, the system of .accour',ii 4 d• ] ,., .r ivg {era .._• ;.I E.dgin Parkmen, Fleming& Fleming.PC t +.: 'i r .ar has bet-'-' niy designed and complied with to prorde the t,rir N,c, a , .,,:i,,,rssuranCe of pertormrg aro r. _ t y r, cc-Itcxmity with applicable professic- I standards •r- ii -•.;•1,.., respects. Firms can rece vc ., ra1 r:; s pass with defic ency(desi or r., ..1 r rl.r kin , r a,K ,-•rnrng, PC has received a r;, yr „'. g of pass Certified Public Accountants EoGIN, PARKMAN, FL.EMING & FLEMING, PC C.FR1 F.F6 F RIIC,ACC.il.4TAkru II 1110 IA IL . Si S,.',?2'�Fi + PC} 7%75p tie{:HaF^t7 I'�:GIN,rw'�A 'NrI:I�ra I- 1 RC. S'S -�:ci,w 'Fda3�'7-0'F5p I) i«f. PaRnaWAri,CPA Pr (41p)7F;F-5550 • .7....X.1134.0)7E6-5778 A PAUL FL Ifle•ki,CPA July 15,2024 Stephen Catver1 Chet Financial Qli cerrOirecioir of Flrtiarce City of Wich to Fa115.Texas PO.Box t.31 Wohita Falls.TX 78307 Dear Mr CaKeert As an addendum to our response to'Me ity's Request for Civelitseatlpn5 for lndeperndent Audit Services, please Fnd below cur proposed tees for the next Five years; • September 30,2024-$75,000 • September 30,2025-$78050 - September 30,2026-577,500 • September 30,2027-S7B.750 - September 30,2028-580,Q00 These asiirlttated fees dip root in wpc rate any increases for any slgndlcant Implementation tirne a1 new CASE standards Should any such Implerneitatlon necessitate a change to the above tees,we will oorlact tie C IN 70 d sGuas. Respectfully V a d_ ``ubmitte ^� ,i Yy Fdl 'f ` fir gin.Parkrnan Fleming 8 Fleming,PC liviorito FaIIS, Texas