R-2022-173 - 5/12/2022 RESOLUTION NO. IZ-2022-173
WHEREAS, it is necessary for the City of Round Rock ("City") to condLICt al"I annual audit of
(lie City's financial records; and
WHEREAS, the accounting firm of Whitley Penn, 11.1) has submitted an engagement letter to
provide said audit for the fiscal year ending September 30, 2022; and
WHEREAS, the City Council \vishes to enter into said engagement letter with Whitley Penn,
LLP. Now Therefore
BE IT RESOLVED BY THE COUNCIL OF T14E CITY OF ROUND ROCK, TEXAS,
That the Mayor is hereby authorized and directed to execute on behalf of the City an
engagement letter with Whitley Penn, 11.11 to conduct said audit, a copy of`same being attached hereto
as Exhibit "A" and incorporated herein liarallpurposes.
The City Council hereby finds and declares that written notice of the date, liour, place and
SUbJect of the meeting at which this lZeSOILItiO.11 was adopted was posted and that such meeting was
open to the pUblie as required by law at all times during which this resolution and the, SUbJect matter
hereof%vere discussed, considered and Iormally acted upon, all as required by the Open Meetings Act.,
Chapter 55 1. Texas Government Code, as aniended.
RESOLVED this 12th day of May, 2022.
CRAIG N G Mayor
City of rand 1, ~.k, Texas
M-11"ST:
..MIE-AGAN TSNK-4Sity Clerk
EXHIBIT
xuigtnomre
"Alluonuw oapoalmumaoxvvr
ewno su/eonv
\A��� ^�8 ���������� �� �"y,m.-mxao/owa
"" " " " ^ " ~° � �= ~�� °~ ° ror,moi�a000wam
w�me�e ncom
Apri18, 2022
Tothe Honorable Mayor,the Members cf
City Council,and the City Manager
22lEast Main Street
Round Rock,Texas 7Q664
Youhavermquestedthatweauditthe0nanciaVstatementsoftheBovermnneota| acdvities,thebmsiness-typeactivi||es, each
major fund, and the aggregate remaining fund information of City of Round Rock, Texas (the "City"), as of September 30\
2022 and for the year then ended, and the related notes to the financial statements, which collectively comprise the City's
basic 8nanciaii statements. In additlom, we will audit the City's compliance over major federal award programs for the year
ended September 3O, 2O22,
We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter.Our audits
will be conducted with the objectives n[ our expressing an opinion on each *pinion unit and an opinion on compliance
regarding the entity's major federal award programs. The objectives ofour audit mfthe financial statements are to obtain
reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due
to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards
generally accepted iethe United States nfAmerica{GAAS}and|oaccordance with Government Auditing Standards will always
detect a material misstatement when it exists, Misstatements, including omissions, can arise from fraud or error and are
considered material if there is a substantial 0ke0hnod that, individually or in the aggregate, they would influence the
judgment made bymreasonable user based unthe financial sta1emeats.
The object�ves of our compliance audit are to obtain sufficient appropriate audit evidence to form an opinion and report at
the level specified in the governmental audit requirement about whether the endty compiled in all material respects with
the applicable compliance requirements and identify audit and reporting requirements specified in the governmental audit
requirement that are supplementary to GAAS and Government Auditing Standards,if any,and perform procedures to address
those requirements,
Accounting principles generally accepted in the United States of America require that certain information be presented to
supplernentthe basicfinancial statemenits.Such information,although not a part of the basic financial staitements,is required
byGovernmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an apipropriaite operational,economic, or historical context. As part of our engagement,we will
apply certain limited procedures iothe required supplementary information (RS0 |in accordance with audit�n@aiand�ards
generally accepted in, the United States of America. These limited procedures will consist primarily of inquiries of
management regarding their methods of measurement and presentation, and comparing the information for consistency
with management's responses to our inquflries.We will not express an opinion or provide any form of assurance on the RSI,
The following RSI is required by accounting principles,generally accepted in the United States of America. This RSI will be
subjected tocertain limited procedures but will not beaudited:
I) Management's Discussion and Analysis,
2] Schedule of Changes in the Net Liability and Related Ratios(Pension and Other Post-Employment Benefits), and
3) Schedule ofContributions(Pension and Other Post-Employment Benefits).
Tothe Honorable Mayor,the Members of
City Council,and the City Manager
April 8,2022
Page 2otIl
Supplementary information other than RSI witl accompany the City's basic financial statements.We will subject the foltowing
suppimnnentary informaGon to the auditing procedures applied in our audit of the basic financial statements and certain
additional procedures,including comparing and reconciling the supplementary information to the underlying accounting and
other records used to prepare the financial statements or to the financial statements themseives,and additional procedures
in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion
onthe following yuppIementaryinformation]n relation to the financial statements as,awhole:
l} Combining and Individual Fund Financial Statements and Schedules,and
Z) Schedule mfExpenditures ofFederal Awards.
Also,the document wesubmit tmyou wilt include the following other additional information that wiH not be subjected to the
auditing procedures apphe4inour audit afthe financial statements:
l) Introductory Section and
Z) Statistical Section.
Data Collection Form
Prior to the completion of our engagement, we will complete the sections of the Data Collection Form that are our
responsibility. The form vvitysummarize Our audit findings, amounts and conclusions. It is management's responsibility to
submit oreporting package including financial statements, schedule of expenditure o,f feclerat awards,summary schedule of
prior audit findings and corrective action plan along with the Data Collection Form to the federal audit clearinghouse. The
financial reporting package must betext searchable, unencvyptmd, and unlocked. Otherwise,the reporting pmckmQevx0W not
be, accepted by the federal audit clearinghouse, We will assist you in the electronic submission and certification. You may
request from us copies of our report for you to include with the reporting package submitted to pass-through entities.
The Data Collection Form is required to be submitted within the earlier of 30 days after receipt of our auditors' reports or
n�ne months after the end of the audit period, unless specifically waived by a federal cognizant or oversight agency for audits,
Data Collection Forms submitted untimely are one of the factors in assessing programs at a higher risk.
Audit ofthe Financial Statements
We will conduct our audit in accordance with auditing standards generally accepted in the United States mfAmerica (U.S.
GAAS),the standards applicable to financial audits contained in Government Auditing Standords, issued by the Comptroller
General of the United States of America; the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200,
Uniform Adninismo/iveRequirements, Cost Principles, and Audit Requirements for Federal Awards (UnJormGandance). As
part of an audit of financial statements in accordance with GAAS and in occordonce with Government Auditing Standards,we
exercise professional judgment and maintain professional skepticism throughout the audit.We aiso:
" Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or
error, design and perform auditprncedu/es responsive tnthose risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may �mvoive
co0usion,forgery, intentional omissions, misrepresentations,or the override of internal controt.
° Obtain an understanding of internal control relevant tmthe audit in order todesign audit procedures that
are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness
of the entity's internai control. However,we will communicate to you in writing concerning any significant
deficiencies or material weaknesses in internay control relevant to the audit of the financial statements that
vv*have identified during the audit.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
esUmnaLes made by management, as well asevaluate the overall presentation of the financial statements,
Tothe Honorab�eMayor,the Members of
City Council, and the City Manager
Aph|8,2022
Page of 11
including the d�sdosures, and whether the financial statements represent the underliying transactions and
events inamanner that achieves fair presentation,
�
Conclude,based on the audit evidence obtained,whether there are condAions or events,considered in the
aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a
reasonable period oftime.
Because of the inherent limitations of an audit,together with the inherent limitat�onis of internal control,an unavoiclab|e risk
that some material misstatements or noncompViance may not be detected exists, even though the audit is properly planned
and performed inaccordance with GAASand Government Auditing Standards nfthe Comptroller GeneraVofthe United States
of America. Please note that the determination of abuse is subjective and Government Auditing I,ondmrdsdoes not require
auditors todetect abuse.
Our responsibility as auditors is limited to the period covered by Our audit and does not extend to any other periods.
VVewill issue awritten report upon completion of our audit of the City's basic financial statements,Circumstances may arise
in which our report may differ from its expected form and content based on the resiu�ts of our audit. Depending on the nature,
of these circumstances, it may be necessary for us to modify our opinions, add an cmuhasis-of-matteror other-matter
paragraph(s} to our auditor's report, or if necessary, withdraw from the engagement. |four opinions on the basic financial
statements are other than unmodified,we will diSCUSS the reasons with you in advance. if, for any reason,vxeare unable to
complete the auditor are unable to form or have not formed opinions, we maydedime to express opinions orto issue a
report asmresult ofthis engagement.
|naccordance with the requirements, ufGovernment Auditing Stondmrds' wcwill also issue awritten report describing th�e
scope of our testing over internal control over financial reporting and over compliance with Imvux' regulations, and provisions
of grants and contracts' including the results of that testing. However, providing an opinion on internal control and
compliance over financial reporting wifl not be an objective of the audit and,therefore, no such opinion will be expressed.
Audit o*Major Program Compliance
Our audit of the City's major federal award program(s)compliance will be conducted in accordance with the requirements of
the Single Audit Act, as amended; and the Uniform Guidance, and will include tests of accounting records, a determination
of major programs in accordance with the Uniform Gui6aoce and other procedures we consider necessary to enable us to
express such an opinion on m:ajor federal award program compliance and to render the required reports.We cannot provide
assurance that an unmodified opinion on compliance will be expressed.Circumstances may arise in which itis necessary for
ustomodify our opinion nrwithdraw from the engagement.
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about whether
mateHa| noncompliance with applicable laws and regulations, the provisions of contracts and grant agreements applicable
to major federal award programs,and the applicable cornpliance requirements occurred,whether due to fraud or error,and
express an opinion on the entity's compliance based on the audit. Reasonable assurance is a high level ofassuramce but is
nntabyoUmte assurance and therefore is not aguarantee that an audit conducted in accordance with GAAS, Government
Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not
detecting material nunicompUance resulting from fraud is higher than for that resulting from error, as fraud may involve
collusion, forgery, intentional omisskons, misrepresentations, or the override of internal control. Noncompliance with the
compliance requirements is considered material if there is a substential |ike8ffiood that individually or in the aggregate, it
vvomUdinfiuencetb*judgmnentmadebymreasunabieuseroftheremortoncompManceabouz1heentity^scomu|iamcewithtbe
requirements ofthe federal programs asawhole.
As part of a compliance audit in accordance with GAAS and in accordance with Government Auditing Suzndo/ds we exercise
pmfessioi4judgment and maintain professional skepticism throughout the audit. We also identify and assess the risks of
materiai noncompliance,whether due to fraud or error, and design and perform audit procedures responsive to those risks,
To the Honorable Mayor, the Members of
City CouncO, and the City Manager
Aph|8, 2022
Page 4of11
our procedures will consist of determining major federal programs and, performing the applicable procedures described in
the,U,S,Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could
have a direct and material effect on each of the entity's major programs, and performing such other procedures as we
considers necessary in the circumstances. The purpose of those procedures will bmtmexpress an opinion on the entity's
compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the
Uniform Guidance.
Also, as required by the Uniform Guidance, we will obtain an understanding of the entity's internal control over compliance
relevant to the audit in order to design and perform tests of controls to evaluate the effectiveness of the design and operation
of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements
applicable to each of the entity's major federal award programs. Our tests will be less in *cope than would be necessary to
render an opinion on these controls and, accordingly, no opinion will be expressed in our report. However, we will
communicate to you, regarding, among other matters, the p�anned scope and timing of the audit and any significant
deficiencies and material weaknesses in internal control over compliance that we have identified during the audit.
We will issue a report on compliance that will include an opinion ordisclaimer ofopinion regarding the City's major federal
programs, and a report on internal controls over compliance that will report any significant deficiencies and material
weaknesses identified; however,such report will not express an mpin�un on internal control.
Management's Responsibilities
Our audit will be conducted on the basis that management and, when appropriate, those charged with governance
acknowledge and understand that they have responsibility:
1. For the preparation and fair presentation of the financial statements in accordance with accounting principles
generally accepted inthe United States ofAmerica;
2. For the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material rnisstaternent,whether clue to fraud or error;
I For identifying,in its accounts,all federal awards received and expended during the period and the federal programs
Linder which they were received;
4. For maintaining records that adequately identify the Source and application of funds for federally funded activities;
5. For preparing the schedule of expendftures of federal awards (including notes and noncash assistance received) in
accordance with the Uniform Guidance;
G. For the design, implementation, and maintenance of internal control over federal awards that provides reasonable
assurance that the entity is managing federal awards in compliance with federal statutes, regulations,and the terms
and conditions nfthe federaCavvards-,
7. For identifying and ensuring that the entity complies with federal laws, statutes, regulations, rules, provisions of
contracts or grant agreements,and the terms and conditions of federal award programs,and implementing systems
designed to achieve compliance with applicable federal statutes,regulations,and the terms and cond�tions of federal
award programs;
8, For 6isc|osingaccmrate|y, currently, and completely the Mnau6a| results of each federal award in accordance with
the requirements of the award
9. For identifying and providing report copies of previous audits,attestation engagements,or other studies that directly
relate to the objecUves of the audit, including whether related recommendations have been implemented;
IO. For taking prompt action when instances ofnoncompliance are identified;
11. For addressing the findings and recommendations ofauditors, for establishing and maintaining a process to track
the status of such findings and recommendations and taking corrective action on reported audit findings from prior
periods and preparing asummary schedule ofprior audit findings;
lZ. For following up and tak�ngcurrective action an current year audit findings and Preparing a corrective action plan
for such findings;
Tothe Honorable Mayor,the Members of
City Council,and the City Manager
Aph|8,2Q22
Page 5cf 11
14. For making the auditor aware of any sIgnificantcantractor relationships where the contractor is responsible for
program compliance;
15. To provide us with:
a. Access to am information of which management is aware that is relevant to the preparation and fair
presentation of the fioamdo| statements, and relevant to federal award prwgrams, Such as records,
documentation,and other matters,
b. Additional information that we may requestfrom management for the purpose of the audit;
c. Unrestricted access to persons within the O|y from whom we determine ht necessary to obtain audit
evidence;
d. A written acknowledgement of all the documents that management expects to issue that will be inciuded
in the annual report and the planned timing and method of issuance of that annual report;and
e. A final version of the annual report(including all the documents that,together,comprise the annual report)
inatimely manner prior tothe date ofthe auditor's report.
15. For a�usdngthe financial statements 1ncorrect material misstatements and confirming to usinthe management
representation letter that the effects ofany uncorrected misstatements aggregated by us during the current
engagement and pertaining tothe current year perimd(s) under audit are immaterial, both individually and in the
aggregate,tothe financial statementsas avxho|e;
17, For acceptance ofmomattestservices,including l6entifylpg the proper party tooversee nonattestwork;
18. For maintaining adequate records,selecting and applying accounting principles,and safeguarding assets;
19. For informing us of any known or suspected fraud affecting the entity involving management, employees with
s�0nif|cantrole/n internal control and others where fraud could have a material effect on compliance;
20. For the accuracy and completeness ofall information provided;
%%. For taking reasonable measures to safeguard protected personally identifiable and other sensitive information;and
22. For confirming your understanding of your responsibilities as defined in this letter to us in your management
representation letter.
With regard to the supplementary information(including the schedule of expenditures of federal awards) referred to above,
you aicknowledge and understand your responsibility(a)for the preparation of the supplementary information inaccordance
with the applicable criteria such avthe Uniform Guidance, (b) to provide us with the appropriate written representations
regarding supplementary information, (d to include our report on the supplementary information in any document that
contains the supplementary information and that indicates that we have reported on such supplementary information, and
(6)to present the supplementary infornmatlmn with the audited financial statennemts, orifthe supplementary information will
not be presented with the audlted AnanciaL statements, to make the audited Finoncla| statements readily available to the
intended users of the supplementary information no later than the date Of issuance by you of the supplementary lnforrnation
and our report thereon,
As part ofour audit process, we will request from management and, when appropriate, those charged with governance,
written confirmation concerning representations made to us in connecUon with the audit.
We understand that your employees will prepare all confirmations we request and will locate any ducumentynrinvoices
selected byus for testing.
If you intend to publish or otherwise reproduce the financial statements and make reference to our,firm,you agree to provide
uxwlth printers' proofs ormasters for our review and approval before printing. You also agree to provide us with a copy of
the final reproduced mnateriai|for our approval before itlsdistributed.
NonatuestServimes
Nonattest services could include assistance with the preparation of the data collection form and its submission to the Federal
Audit Clearinghouse,We will not assurne management responsibilities on behalf of the City. However,we will provide advice
and recommendations to assist management of the City in performing its responsibiliVes.
Tothe Honorable Mayor, the Members of
City Council, and the City Manager
April 8, Z022
Page 6mf11
The City's management is responsible for (a) making all management decisions and performing all management functions;
(b) assigning m competent individual to oversee the services; (c) evaluating the adequacy ofthe services performed; (d)
evaluating and accepting responsibility for the results cf the services performed,-and(e)establishing and maintaining internal
controls,including monitoring ongoing activities.
Our responsibilities and limitations of the nonattest services are described below:
The nonattestsemices are Umfted to the services vvedescribed above. Ourf|rm, in its sole professional judgment, reserves
the right to refuse to do any procedure or take any action that Could be construed asmaking management decisions or
assuming management responsibilities, including determining account coding and approving journal entries. Our firm will
advise the City regarding these nonattest services, but the City must make all decisions with regard to those matters.
Fees and Tiimiag
The timing of our audit will be scheduled for performance and completion as follows:
Document internal control and preliminary tests July 2022
inventory observation (for material balances) September 30^ ZOZZ or agreed upon
date
Perform year-end audit procedures Novembmr/DecenoberZVZ2
Issue audit reports Feb mmry2QZ3
VV*anticipate meeting these deadlines barring any delays.
Guadalupe R, Garcia,CPA is the engagement partner for the audit services specified in this letter, His responsibilities include
supervising Whitley Penn, LLP's services performed as part of this engagernent and signing or authorizing another qualified
firm representative tosign the audit report,
Our fee for the audit services will bebased mothe amount cf time required and the difficulty ofthe work involved whiichwe
esUmacatobe$114,94O. The fee estimate for the audit is based on anticipated cooperation from the City's personnel and
the, assumption that unexpected circumstances will not haencountered during the audit. If significant additional Ume is
necessary,we will keep you informed of any problems we encounter and wur fees will be adjusted accordingly.
Our�nvojces for these fees will be rendered each month as work progresses and are payable on presentation and payment is
due in Tarrant County. You agree to pay reasonable attorney fees and collection costs incurred relating to collection of fees
for services performed under the terms of this engagement. In accordance with Whitley Penn, LLP policy, work may be
suspended if your account becomes 30 days or more past due and will not resume until your account is paid in full. |naddition'
invoices not paid in full bythe last day ofthe month will beassessed interest ata rate ofone percent per month. Ufm/eelect
to terminate our services for nonpayment,our engagement will be deemed to have been complete even if we have not issued
our report. You will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket
expenditures through the date ufternn[mabun. Our final auditors' report will be released upon final payment of any
outstanding invoices.
You may request that we peMbnn additional services not addressed in this engagement letter, If this occurs, we will
commun�cate with you concerning the scope of the additional services and the estimated fees. vVealso may issue aseparate
engagement letter covering the addit�oma|services. |nthe absence ofany other written communication from usdocumenting
such additional services,our serv�ces will conUnue to be governed by the terms of this engagement letter.
m/ewould like tnmake the following comments regarding the fee estimates:
L Our fee estimates have not considered the effects ufany changes toauditing standards and accounting p6ndp|eu'
which may be promulgated by the AICPA,Congress,or any other regulatory body in the,fmture and are unknown to
^
Tothe Honorable Mayor,the Members of
City Council, and the City Manager
April 8,2CQ2
Page 7nf11
usatthis time, If significant additional time is necessary resulting in increased fees,we will endeavor to notify you
ofany such circumstances asthey are assessed.
Z. The [ir/u personnel are responsible for the preparadnn of all items requested in the Prepared by Client (^P8[~)
listing and received by the date requested. Any delays caused by not preparing the items when requested may result
�m o6d'�tinna| fees' as well as the possibility of postponing our fieldwork. The P8[ fisting will be provided to you
during the planning process ofthe engagement.
1 Time incurred for audit adjustments identified during our audit and the related adcIffional testing required has not
been considered inour fee esthmates. Prior to performing any additional testing,we will notify you of the exceptions
and obtain approval for any m6ditana|fees which may beincurred,
4, Our fee estimates are based on all general ledger sub ledgers being reconciled to the general ledger ballance and any
adjustment necessary should be recorded to the general ledger prior to our fieldwork start date,
The etNcs of our profession prohibit the rendering of professional services where the fee for such services is contingent, or
has the appearance ofWmgcontingent, upon the results ofsuch services. Accordingly, itisimportant that our bills bepaid
promptly when received. |yasituation arises inwhich itmay appear that our independence would be questioned because of
significant unpaid bills,we may be prohibited from issuing our auditors' report.
In the unlikely event that differences concerning our services or fees should arise that are not resolved by mutual agreement,
tofacilitate judicial resuYntiun and save time and expense ofboth parties, the City and Whitley PemnaQreeriot Ln demand a
trial by jury in any action, proceeding, or couinterclaim arising out of or relating toour services and fees for this engagement.
Any controversy, dispute, or questions arising out of or in connection with this agreement o, ou, engagement shall be
determined by arbitration conducted in accordance with the rules of the American Arbitration Association,and any decision
rendered bythe American Arbitration Association she8h be binding on both parties tmthis agemment. The costs of any
arbitration shall be borne equally by the parties. Any and all claims in arbitration relating to or arising out of this
contract/agreement shall be governed by the laws of the State of Texas and to the extent any issue regarding the,arbitration
is submitted to a court,including the appointment of arbitrators or confirmation of an award,the District courts in Williamson
County shall have exclusive jurisdiction. Any action arising out ofthis agreement orthe services provided shall be initiated
within two years ofthe service provided.
This letter replaces and supersedes any previous proposals,correspondence and understanding,whether written or oral. The
agreementscunta�med in this engagement letter shall survive the completion or termin:ation of this engagernent.
To ensure that Whitley Penn. LLP's independence isnot impaired under the AICPA Code gfP,ofess/ovm/Cunductr, you agree
to inform the engagement partner before entering into any substantive employment discussions with any of our personnel.
Other Matters
During the course o[the engagement,we may communicate with you or your personnel via fax or e-mail,and you should be
aware that commuo�cation in those mediums contains a risk ofmisdirected or intercepted communications.
In the course ofour services,our firm may transmit confidential information that you provided uutothird parties in order to
facilitate our services. As applicable, we require confidentiality agreements with all oaryemice providers to maintain the
confidentiality of your information and additionally the firm will take reasonable precautions todetermine that our service
providers have the appropriate procedures in place to prevent the unauthorized release of confidential information to others.
We will remain ultimately responsible for the work provided by any third-party service providers used under this agreement.
Byyour signature below,you consent to having conficlentiall information transmitted to entities outside the firm. Please feel
free to inquire if you would like additional information regarding the transmission of confidential information to entities
outside the firm.
Tothe Honorable Mayor,the Members of
City Council, and the City Manager
April 8' 202Z
Page 8*f%1
Regarding the electronic dissemination of audited financial statements, including financial statements published
electronically on your Internet website' you understand that electronic sites are a means ,o distribute information and,
therefore, we are not required to read the information contained in these sites or to consider the consistency of other
information in the electronic site with the original document.
Professional standards prohibit usfrom being the sole host and/or the sole storage for your financiadi and non-financial data.
As such, it is your responsibility uzmaintain your original data and records and we cannot be responsible to maintain such
original information. By signing this engagement letter, you affirm that you have all the data and records required to make
your books and records complete.
In the event we are required by government regulation, required by subpoena or other legal process to produce information
or our personnel for interviews or depositions in relation to a matter involving the City,the City will, so long as we are not a
party or the focus of the proceeding or inquiry in which the information is sought,reimburse us for our professional time and
expenses, as well as the fees and expenses of our counsel,incurred in responding to such requests.
The audit documentation for this engagement is the property of Whitley Penn, LLP and constitutes confidential information,
However, we may be requested to make certain audit documentation available tnyour pass-through regulatory entity and
federal agencies and the U.S. Government Accountability Office pursuant to authority given to it by law or regulation,or to
peer reviewers. |frequested,access xasuch audit documentation will beprovided;under the supervision Whitley Penn, LLP^s
personnel. Furthermore, upon request, we may provide copies of selected audit documentation to these agencies and
re8"8ators.The regulators and agencies may intend, or decide, todistribute the copies of information contained therein to
others, including other governmental agencies.
The City maywish to include our report on these financial statements in an exempt offering document.The City agrees that
the aforementioned auditor's report, or reference to our Firm, will not be included in such offering document without prior
permission or consent, Any agreement to perform work in connection with an exempt offering document, including an
agreement to provide permission or consent, will he a separate, engagement letter. For exempt offerings for which we are
not involved,you will clea0y indicate that we were not involved with the contents of such offering document and a disclosure
asshown below will beincluded inthe exempt offering:
"Whitley Penn, our independent auditor, has not been engaged to perform and has not performed, since
the date of its report included herein,any procedures onthe finandahstatements addressed inthat report�.
Whitley Penn also has not performed any procedures relating tothis offering document.^
Further,we will be available during the year to consult with you on financial management and accounting matters of a routine
nature,
During the course of the audit, we may observe opportunities for economy in, or improved controls over, your operations.
We will bring such matters to the attention of the appropriate level of management, either orally or in writing.
We agree to retain our audit documentation or work papers for a period of at least five years from the date of our report.
You agree to inform us of facts th,at may affect the financial staternents of which you may become aware during the period
from the date ofthe auditor's report,othe date the financial statements are issaed.
At the conclusion of our audit engagement, we will communicate to, the City Council the following significant findings from
theaudit�
w Our view about the qualitative aspects of the City's significant accounting practices;
• Significant difficulties, ifany, encountered during the audit;
• Uncorrected misstatements,other than those we believe are trivial, if any;
w Disagreements with management,ifany�
Tothe Honorable Mayor,the Members of
City Council, and the City Manager
April 8, 2&Z2
Page of 11
* Other findings nrissues,i1any,arising from the audit that are,|nour prpfe» �wna|/ud#ment,significsmtamdre|evanc
to those charged with governance regarding their oversight of the financial reporting process;
~ Material, corrected misstatements that were brought to the attention of management as a result mfour audit
procedures;
~ Representations m/erequested from management;
* Management's consultations with other accountants, ifany; and
m Significant �ssues' if any, arising from the audit that were discussed' or the subject of correspondence, with
management.
|naccordance with the requirements af Government Auditing Standards,vvehave attached acopy ufour latest external peer
mv�ewreport ofour firm for your consideration and files.
Please sign and return the attached copy oftMs letter to indicate your acknowledgment of, and agreement with, the
arrangements for our audit of the financie8 statements compliance over major federal award programs including our
respective responsibilities.
We appreciate the opportunity to be your financial statement auditors and look forward to working with,you and your staff.
Respectfully,
UJIAi B ;-H IF—/ fZi
Austin,Texas
RESPONSE:
This letter correctly setsforth our understanding.
Acknowledged and agreed onbehalf mfCity ofRound Rock,Texas by:
Name�:
Title:
Date:
Name:
Tide:
Date:
To the Honorable Mayor,the Mernbers of
City Council, and the City Manager
April 8, 2022
Page 10 of 11
Clifton Larwn Allen UP
CAP, CLAconnect.com
REPORT ON THE FIRM'S SYSTEM OF QUALITY CONTROL
To the Partners of Whitley Penn LLP
and the National Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Whitley
Penn LLP (the firm) applicable to engagements not subject to PCAOB permanent inspection in effect
for the year ended April 30, 2021. Our peer review was conducted in accordance with the Standards for
Performing and Reporting on Peer Reviews established by the Peer Review Board of the American
Institute of Certified Public Accountants (Standards),
A summary of the nature, objectives, scope, limitations of, and the procedures performed in, a System
Review as described in the standards may be found at www.aicpa.org/prsummar summary also
ry� The
includes an explanation of how engagements identified as not performed or reportedin conformity with
applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review
rating.
Firm's Responsibility
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. The, firm is also responsible for evaluating actions to promptly
remediate engagements deemed as not performed or reported in conformity with professional
standards,when appropriate, and for remediating weaknesses in its system of quality control, if any.
Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design of the system of quality control and the firm's
compliance therewith based on our review.
Required Selections and Considerations
Engagements selected for review included engagements performed under Govemment Auditing
Standards (including compliance audits under the Single Audit Act), audits of employee benefit plans,
audits performed under the Federal Deposit Insurance Corporation Improvement Act (FDICIA), and an
examination of a service organization (SOC 1 engagement),
As a part of our peer review,we considered reviews by regulatory entities as communicated by the firm,
if applicable, in determining the nature and extent of our procedures.
Nexi!a
To the Honorable Mayor,the Members of
City Council, and the City Manager
April g,2022
Page 11 of 11
Whitley Penn LLP
Page 2
Opiinion
In our opinion, the system Of quality control for the accounting and auditing practice of Whitley Penn
LLP applicable to engagernents not subject to PCAOB permanent inspection in effect for the year
ended April 30, 2021, has been suitably designed and complied with to provide the firm with reasonable
assurance of performing and reporting un conformity with applicable professional standards in all
material respects. Firms can receive a rating of pass, pass with deficiency(ies), or fail. Whitley Penn
LLP has received a peer review rating of pass.
CliftonLarsonAllen LLP
Phoenix, Arizona
October 6, 2021