T own of F air vie w Counc il Me e ting | Apr il 3, 2018 Ove r - PowerPoint PPT Presentation

Pr e se ntation to T own of F air vie w Counc il Me e ting | Apr il 3, 2018

Ove r vie w • I ntro duc tio n • Audit Pro c e ss • Re q uire d Co mmunic a tio ns • Audit Re sults • F ina nc ia l Hig hlig hts • Ne w Ac c o unting Pro no unc e me nts • Que stio ns 2

I ntro duc tio ns 3

T he F ir m of T e xas We ave r is the lar ge st inde pe nde nt ac c ounting fir m base d in T e xas and the Southwe st. We ’ve se r ve d T e xas public se c tor e ntitie s for 66 ye ar s. F o rt Wo rth Da lla s Co nro e Midla nd Ho usto n Austin Sa n Anto nio 4

E ngage me nt L e ade r ship John De Bur r o, CPA Pa rtne r, Assura nc e Se rvic e s Clair e Wootton, CPA Ma na g e r, Assura nc e Se rvic e s 5

E ngage me nt T e am T own of F air vie w John De Bur r o, CPA E ng a g e me nt Pa rtne r Consulting Audit E lisa Gilbe r tson, CPA Clair e Wootton, CPA Ad viso ry Se rvic e s -ACL Da ta Spe c ia list Aud it Ma na g e r Kayc e Stillings Aud it Asso c ia te I 6

Audit Pro c e ss 7

E ngage me nt T ime line Initial Audit Planning Disc uss Inte r im F ie ldwor k De ve lopme nts/ Jul 17 – Jul 21 Issue s Co ntinuo us Co mmunic a tio n Counc il Me e ting F inal F ie ldwor k April 3 Ja n 15 – Ja n 26 Re le ase Audit Opinion Ma rc h 16 8

Audit Pr oc e ss T he a udit wa s pe rfo rme d in a c c o rda nc e with • Ge ne ra lly Ac c e pte d Auditing Sta nda rds (GAAS) a nd Ge ne ra lly Ac c e pte d Gove rnme nt Auditing Sta nda rds (GAGAS) T he a udit pro c e ss wa s a risk- ba se d a pproa c h • in whic h we ide ntifie d po te ntia l a re a s o f risk tha t c o uld le a d to ma te ria l missta te me nt o f the fina nc ia l sta te me nts. We ta ilo re d o ur a udit pro g ra ms a nd re so urc e s to spe c ific a lly a ddre ss the fo llo wing a re a s o f risk: Re ve nue re c o g nitio n a nd re la te d • re c e iva b le s Ca pita l pro je c ts, purc ha sing a nd • c o mplia nc e with b idding pro c e dure s Pa ya b le s, a c c rue d lia b ilitie s, a nd • e xpe nditure s 9

Audit Pr oc e ss Inte r im fie ldwor k and r isk asse ssme nt we r e pe r for me d in July 2017. Pr oc e dur e s inc lude d: Wa lkthro ug h o f a c c o unting c o ntro ls o ve r sig nific a nt • tra nsa c tio n c yc le s: Budg e t • Purc ha sing a nd Ac c o unts Pa ya b le • Pa yro ll • Ca sh Re c e ipts – ta xe s, munic ipa l c o urt, utility b illing • T e st o f inte rna l c o ntro ls: • Ca sh disb urse me nts • Pa yro ll • T e st o f c o mplia nc e • Pub lic F unds I nve stme nt Ac t • Bidding pro c e dure s • 10

Audit Pr oc e ss F inal fie ldwor k- pe r for me d in Januar y 2018 Pr oc e dur e s inc lude d: T e sting o f sig nific a nt a c c o unt b a la nc e s using a c o mb ina tio n • o f vo uc hing o f ma te ria l tra nsa c tio ns, sa mpling tra nsa c tio ns a nd a pplying a na lytic a l pro c e dure s. Assisting with the pre pa ra tio n o f the fina nc ia l sta te me nts. • 11

Audito r Co mmunic a tio ns fo r the ye a r e nde d Se pte mb e r 30, 2017 12

Re quire d Communic a tions to T hose in Cha rg e of Gove rna nc e Communic ation Re sults T he fina nc ia l sta te me nts a re the re spo nsib ility Audito r’ s re spo nsib ility unde r o f the T o wn. Our a udit wa s de sig ne d in g e ne ra lly a c c e pte d a uditing a c c o rda nc e with GAAS in the U.S. a nd sta nda rds (GAAS) pro vide s fo r re a so na b le ra the r tha n a b so lute a ssura nc e tha t the fina nc ia l sta te me nts a re fre e o f ma te ria l missta te me nt. Our re spo nsib ility is to e xpre ss a n o pinio n a b o ut whe the r the fina nc ia l sta te me nts pre pa re d b y ma na g e me nt with yo ur o ve rsig ht a re fa irly pre se nte d , in a ll ma te ria l re spe c ts, in c o nfo rmity with U.S. g e ne ra lly a c c e pte d a c c o unting princ iple s. Our a udit o f the fina nc ia l sta te me nts do e s no t re lie ve yo u o r ma na g e me nt o f yo ur re spo nsib ilitie s. T he a udit o f the fisc a l ye a r 2017 fina nc ia l sta te me nts ha s b e e n c o mple te d a nd we ha ve issue d a n unmo difie d o pinio n. 13

Re quire d Communic a tions to T hose in Cha rg e of Gove rna nc e Communic ation Re sults I n a dditio n to the GAAS re spo nsib ilitie s, we Audito r’ s Re spo nsib ility unde r a re re q uire d to issue a writte n re po rt o n o ur Go ve rnme nt Auditing c o nside ra tio n o f inte rna l c o ntro ls a nd ide ntify Sta nda rds sig nific a nt de fic ie nc ie s, inc luding ma te ria l we a kne sse s, if a ny. Our re po rt do e s no t pro vide a ssura nc e o n inte rna l c o ntro ls. We de sig n o ur a udit to pro vide re a so na b le a ssura nc e o f de te c ting ma te ria l missta te me nts re sulting fro m no nc o mplia nc e with pro visio ns o f c o ntra c ts o r g ra nt a g re e me nts tha t ha ve a dire c t o r ma te ria l e ffe c t o n the fina nc ia l sta te me nts. We issue d a writte n re po rt o n the re sults o f the se pro c e dure s; ho we ve r, o ur re po rt do e s no t e xpre ss a n o pinio n o n c o mplia nc e . No ma te ria l we a kne sse s ide ntifie d, no sig nific a nt de fic ie nc ie s ide ntifie d. 14

Re quire d Communic a tions to T hose in Cha rg e of Gove rna nc e Communic ation Re sults T he sig nific a nt a c c o unting po lic ie s use d b y the Unusua l tra nsa c tio ns a nd the T o wn a re de sc rib e d in No te 1 to the fina nc ia l a do ptio n o f ne w a c c o unting sta te me nts. princ iple s Ne w GASB pro no unc e me nts imple me nte d in 2017 inc lude GASB Sta te me nt No . 77. T he e ffe c t o f the imple me nta tio n o f GASB Sta te me nt No . 77 is a n a dditio na l disc lo sure (No te 10). Othe r pro no unc e me nts imple me nte d in 2017 inc lude GASB Sta te me nt No . 78, 80, a nd 82. T he imple me nta tio n ha d no sig nific a nt e ffe c ts o n the fina nc ia l sta te me nts. We no te d no tra nsa c tio ns e nte re d into b y the T o wn during the ye a r fo r whic h the re is a la c k o f a utho rita tive g uida nc e o r c o nse nsus. 15

Re quire d Communic a tions to T hose in Cha rg e of Gove rna nc e Communic ation Re sults No fra ud, irre g ula ritie s, o r ille g a l a c ts we re F ra ud a nd ille g a l a c ts no te d. No ma te ria l we a kne sse s no te d. Ma te ria l we a kne ss in inte rna l c o ntro l We pe rfo rme d limite d pro c e dure s o n the Othe r info rma tio n c o nta ine d in Ma na g e me nt’ s Disc ussio n a nd Ana lysis do c ume nts c o nta ining a udite d (MD&A) a nd Re q uire d Supple me nta ry fina nc ia l sta te me nts I nfo rma tio n (RSI ). We did no t pro vide a ny a ssura nc e o n this info rma tio n. Ma na g e me nt’ s e stima te s o f unc o lle c tib le Ma na g e me nt judg me nts a nd re c e iva b le s, ne t pe nsio n lia b ility a nd use ful a c c o unting e stima te s live s o f c a pita l a sse ts we re e va lua te d a nd de te rmine d to b e re a so na b le in re la tio n to the fina nc ia l sta te me nts a s a who le . We re q ue ste d c e rta in re pre se nta tio ns fro m Ma na g e me nt re pre se nta tio ns ma na g e me nt tha t we re inc lude d in the ma na g e me nt re pre se nta tio n le tte r. 16

Re quire d Communic a tions to T hose in Cha rg e of Gove rna nc e Communic ation Re sults No sig nific a nt diffic ultie s we re e nc o unte re d during Diffic ultie s e nc o unte re d o ur a udit. We a re no t a wa re o f ma na g e me nt c o nsulting with Ma na g e me nt c o nsulta tio ns o the r a c c o unta nts fo r a se c o nd o pinio n. No inde pe nde nc e issue s no te d. Audito r inde pe nde nc e No disa g re e me nts a ro se o ve r the c o urse o f o ur Disa g re e me nts with a udit. Ma na g e me nt 17

Re quire d Communic a tions to T hose in Cha rg e of Gove rna nc e Communic ation Re sults Pro fe ssio na l sta nda rds re q uire us to a c c umula te a ll Audit a djustme nts kno wn a nd like ly missta te me nts ide ntifie d during the a udit, o the r tha n tho se tha t a re trivia l, a nd c o mmunic a te the m to the a ppro pria te le ve l o f ma na g e me nt. We ha d o ne a udit a djustme nt to re c la ss the po rtio n o f c a sh re c e ive d tha t wa s re c e ive d in a dva nc e o f c o mple ting the wo rk o n va rio us ro a d pro je c ts fro m Re ve nue to Une a rne d Re ve nue (Ca pita l Pro je c ts F und). I n a dditio n, the re we re no unc o rre c te d missta te me nts disc o ve re d a s a re sult o f o ur a udit pro c e dure s. No thing to no te . Othe r ma te ria l writte n c o mmunic a tio ns b e twe e n We a ve r a nd T idwe ll, L .L .P., a nd the T o wn 18

Audito r Re sults

Auditor Re sults We ha ve issue d the I nde pe nde nt Audito r’ s Re po rt o n the fina nc ia l • sta te me nts  Unmo difie d o pinio n o r “c le a n” o pinio n We ha ve issue d the I nde pe nde nt Audito r’ s Re po rt o n I nte rna l • Co ntro l o ve r F ina nc ia l Re po rting a nd o n Co mplia nc e a nd Othe r Ma tte rs Ba se d o n a n Audit o f F ina nc ia l Sta te me nts Pe rfo rme d in Ac c o rda nc e with Go ve rnme nt Auditing Sta nda rds  No ma te ria l we a kne sse s no te d  No sig nific a nt de fic ie nc ie s no te d 20

F ina nc ia l Hig hlig hts 21