Contract - Whitley Penn - 5/12/2022 4 /V
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Apri|8,2022
Tothe Honorable Mayor,the Members of
City Council,and the City Manager
221 East MainStreet
Round Rock,Texas 7O664
You have requested that we audit the financial statements of the governmental activities, the business-type activitiies, 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 financial statements. In addition, we will audit the City's compliance over major federal award programs for the year
ended September 30'20Z2�
We are pleased to confirm our acceptance and our understanding of this audit engagement by rneans of this letter,Our audits
wihl be conducted with the objectives of our expressing an opinion on each opinion unit and an opinion on compliance
regarding the entity's major federal award programs. The objectives mfour audit of the financial statements are to obtain
reasonable assurance about whether the financial statements as a whole are free from material misstatement,whether due
tofraud orerror,and tnissue anauditor's report that includes our opinion,Reasonable assurance isahigh level ofassurance
but is not absolute assurance and therefore is not a guarantee that an audiit conducted in accordance with audibng standards
generally accepted inthe United States of America(GAAS)and in accordance with Government Auditing Standards willi ailways
detect a material misstatement when it exists, Misstatements, including *missions, can arise from fraud or error and are
considered ena¢eha| if there is a substantial |[heUhmnd that, individually or in the aggregate, they would influence the
judgment made byereasonabieuser based onthe financial statements.
The objectives 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 entity complied 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 generaQy accepted in the United States of America reqvii/e that certain information be presented to
supplement the basic financial statements.Such information,although not a part of the basic financial statements,is required
byGovernmental Accounting Standards Board, who considers it to be an essential part of f inanciali reporting for placing the
basic financial statements in an appropriate,operational,economic, or historical context.As part of our engagement,we w0i
apply certain limited procedures tnthe required supplementary information (R8) in accordance with auditing standards
generally accepted in the United States of America, These hmoited procedures will consist primarily of inquiries of
managementregarding their methods ofmeasurement and presentation, and comparing the information for consistency
with management's responses to our inquiries. 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 cocertain limited procedures but will not beaudite&
1) Management's Discussion and Analysis,
2) Schedule of Changes in the Net Liability and Related Ratiios(Pension and Other Post-Emptoyment Benefits), and
3) Schedule of Contributions(Pension and Other P'ost-Employment Benefits),
e " ,
,-R-zozz—J 73
Tothe Honorable Mayor,the Members mf
City Council, and the City Manager
Apr||$' 3022
Page 2mfI1
Supplementary information other than RSI will accompany the City's basic financial state rnien ts,.We will subject the following
supplementary information to the auditing procedures applied in our audit ofthe basic financial statements and certain
additional procedures,inducting comparing and reconciling the supplementary information to the underlying accounting and
other records used ooprepare the financial statements ortothefinancia|staemeotsthemaelvns and additional procedures
in accordance with auditing standards generally accepted in the United States ofAmerica.uVe intend toprovide an opinion
on the following supplementary information in rOation to the financial statements as a whole:
1) Combining and Individual Fund Financial Statements and Schedules, and
Z) Schedule ofExpenditures ofFecien*\Awards.
Also,the document we submit to you will include the following other additional information that will not be subjected to the
auditing procedures applied inour audit nfthe financial statements:
1} 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 will summarize our audit findings, amounts and conclusions, It is management's responsibility to
submit mreporting package including financial statements,schedule of expenditure of federal 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, unencrypted, and unlocked. Otherwise, the reporting package wit] 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
nine 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 cfthe factors|nassessing programs aLmhigher risk.
Audit afthe Financial Statements
We will conduct our audit in accordance with auditing standards @enerai[yaccepted in the United States ofAmerica (U.S.
GAAS), the standards applicable to financial awditsountaiued in Government Auditing Standurds^ issued by the Comptroller
General ofthe United States of America-, the audit requirements of Title 2 U.S. Co�e of Federal Regulations (CFR) Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). As
part of an audit of financial statements in,accordance with GAAS and in accordonce with Government Auditing Standards,we
exercise professional judgment and maintain professional skepticism throughout the audit.We also:
• Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or
error, design and perform audit procedures responsive tothose risks, and obtain awd�tevidence 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 involve
collusion, forgery, intentional omissions, misrepresentations,or the override of internal control.
* Obtain an understanding afinternal control relevant rnthe audit in order to design audit procedures that
are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal control, However,we will communicate to,you in writing concerning any significant
deficiencies or mate,ria,t weaknesses in initernat control relevant to the audit of the financial statements that
mchave identified during the audit.
* EvaUmatethe appropriateness ofaccounting policies used and the reasonableness ofsignificant accounting
estimates made by management, as well as evaluate the overall presentation nfthe financial statements,
Tothe Honorable Mayor,the Members of
City Council, and the City Manager
April 8,
Page,3of11
including the disclosures, and whether the financial statements represent the underlying transactions and
events inamanner that achieves fair presentation.
w
Conclude,based on the audit evidence obtained,whether there are conditions or events, considered in the
aggregate, that raise substantial doubt about the City's ability to rmndmmm as a going concern for e
reasonable period oftime,
Because of the inherent limitations of an audit,'together with the inherent limitations of internal control,an unavoidaNe 6sk
that some material misstatements or noncompliance may not be detected exists, even though the audit is properly planned
and performed inaccordance with GAASand Government Auditing Standards ofthe Comptroller General ofthe United States
of America. Please note that the determination of abuse is subjective and Government Auditing Stondards does not require
auditors todetect abuse.
Our responsibRity as auditors is limited to the period covered by our audit and does not extend to any other periods.
We will issue a written report upon completion Of Our audit of the City's basic finandal statements, Circumstances may arise
in which our report may differ from its expected form and content based on the results Of Our audit.Depending onthe nature
of these circumstances, it may be necessary for us to modify our opinions, add an emphasis*f'matteror other-matter
paragraph(s) to our auditor's report, or if necessary, withdraw from the engagement. If our opinions on the basic financial
statements are other than unmodified, we will discuss the reasons with you in advance. If, for any rea:son,we are unab�e to
complete the aud�t or are unab;e to form or have not formed npWows, we may decline to express opinions or to issue a
report ayaresult mfthis engagement.
ln accordance w[th the requirements of Government Auditing Stondards, we will allso issue a written report describing the
scope ofour testing over internal control over financial reporUng and over compliance with laws,regulations,and provisions
of grants and contracts, including the results of that testing. However, uruv�dimg an ouin�on on internal control and
compliance over financial reporting will not bemn ubjecdve ufthe audit and,therefore, no such opinion will be expressed.
Audit ofMajor Program Compliance
Our audit of the City's major federal award program(s)comp4ance will be conducted in accordance wfth the requirements of
the Single Audft Act, as amended; and the Uniform Guidance, and will include tests of accounting records, adetermination
of major programs in accordance with the Uniform Guidance and other procedures we consider necessary to enable us to
express such an opinion on major federal award program compliance and to render the required reports.We cannot provide
assurance that pn unmodified opinion oncompliance wiU be expressed, Circumstances may arise in which itisnecessary for
msiomodify our opinion mrwithdraw from the engagement.
The Uniform Guidance requires that vve also plan and perform the audit to obtain reasonable assurance about whether
material noncompliance with applicable laws and regulations, the provisions mfcontracts and grant agreements applicable
tnmajor federal award programs,and the applicable compflance requirements occurred,whether due to fraud or error, and
express an opinion on the entity's compliance based on the audit. Reasonable assurance in a high level of assurance but is
not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS' Government
AmoVdngStondords, and the Uniform Guidance will always detect materiail noncompliance when it exists. The risk afnot
detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve
collusion, fwrQery, intentional omissions, misrepresentations, or the override mfinternal control. Noncompliance with the
compliance requirements is considered material if there is a substantial |[be|ihood that, individually or in the aggregate, it
would influence the judgment made by a reasonable user of the report on compliance about the entity's compliance with the
requirements ofthe federal programs myawhole,
As part of a compkance audit in accordance with GAAS and in accordance with Government-Auditing Standards,we exerdse
professional judgment and maintain professional skepticism throughout the audit. VVeaUse identify and assess the risks of
material noncomp��ance,whether due to fraud or error,and design and perform aucift procedures responsive tuthose risks.
Tothe Honorable Mayor,the Members of
City Council, and the City Manager
Apri|8' 2022
Page 4of1I
Our procedures will consist of determining major federal programs and, performing the applicable procedures described in
the U.S,Office ufManagement and Budget OMB Compliance Supplement for the types oycompliance requirements that could
have a direct and material effect on each of the entity's major programs, and performing such other procedures aom/e
considers necessary in the circumstances. The purpose of those procedures will betmexpress 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 perforrn 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 toeach mfthe entity's major federal award programs. Our tests will beless inscope than would benecessary to
render an opinion on these canitm|s and, accordingly, no opinion will be expressed �m our report. However, we will
communicate to you, regarding, avmongmtber matters, the planned scope and timing of the audit and any significant
deficiencies and material weaknesses ininternal control over compliance that v*ehave identified during the audit.
We will issue a report on compliance that will k,idude an opin,ion or disclaimer of opinion regarding the City's major federal
progrmms, 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 opinion 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 responsibi|ity:
1. For the preparation and fair presentation of the financial statements in accordance with accounting principles
generally accepted inthe Uwfted States ofAmerica;
2. For the design, implementation, and maintenance of internal control relevant to the preparation and fair
presemtationpffinancia|stat+meotythetarefree(rmmmatmrioimninotmtmnment,vvhetherduetmfraadmreeor
3. For identifying,in its accounts,all federal awards received and expended during the period and the federal programs
under which they were received;
4. For maintaining records that adequately identify the source and application of funds for feclerafly funded activities;
S. For preparing the schedule of expenditures of federal awards (including notes and noncash assistance received) in
accordance with the Uniform Gwidance;
6. For the design, implementation, and maintenance of internal control over federal awards that provides reasonable
ms*mramcethattheenth|yisnnanagingfedera|awardsincomp|iaecevvithfedera|s1atutes,,egu|aiions,andthetermy
and conditions ofthe federal awards;
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 systerns
�esigned to achieve compliance with applicable federal statutes,regulations,and the terms and conclit�ons of federal
award programs;
8, For disclosing accurately, currently, and completely the financial results of each federal award in accordance with
the requirements ufthe award
9. For identifying and providing report copies of previous audits,attestation engagements,or other studies that directly
relate tothe objectives wfthe audit,including whether related recommendations have been implemented;
10� For taking prompt action when instances ofnoncompliance are identified;
11. For addressing the findings and necummemdationywfauditors, for establishing and maintaining a process totrack
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 fnHovvingupand taking corrective action oncurrent year audit findings and preparing acorrective action plan
for such findings;
13. For submitting the reporting package and data;collection form to the appropriate parties;
Tothe Honorable K8ayorthew1e,mbeoof
City Council, and the City Manager
April 8'2O]Z
Page 5of11
1.4. For making the auditor aware nfany significant contractor re|aWonships where the contractor is responsible for
program compliance;
15� Toprovide uswith:
a� Access to all information of which management is aware that is relevant to the preparation and fair
presentation of the financial statements, and relevant to federal award programs, such as records'
documentation, and'other matters;
b. Additional information that we may request from management for the purpose of the audit;
c. Unrestricted access to persons withlm the City from mMnm we determine it necessary to obtain audit
evidence,
d. A written acknowledgement of all the docurnents that management expects to issue that wiH be included
in the annual report and the planned timing and method of issua:nce of that annual report;and
e. Afinal version ofthe annual report(including all the documents that,together,oomprisetheannuaiepom)
inptimely manner prior tmthe date ofthe auditor's report,
16. For adjusting the financial statements to correct material misstatements and confirming to us in the management
representation letter that the effects of any uncorrected misstatements aggregated by us during the current
engagement and pertaining to the current year pehod(y) under audit are immaterial, both individually and in the
aggregate,tathe financial s1atcmentsasawhole;
17. For acceptance of nonattest services, including identifying the proper party to oversee nonattesL work;
18. Formain1ainingadequatemcords,se|ectimgamdapp|yinQaccoundn8princip|es,andsafeBuardingesocts;
19. For informing us of any known or suspected fraud affecting the entity involving managennent, employees with
significant role in internal cuntro\and others where fraud could have m material effect on compliance;
70. For the accuracy and completeness ofall information provided;
ZI. 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 m in your management
representation letter.
With regard to the supplementary information (including the schedule of expenditures of federal awards) referredtoabove,
you acknowledge and understand your responsibility(a)for the preparation of the supplementary information in accordance
with the applicable criteria such as the Uniform Guidance, (b) to provide LIS with the appropriate written representations
regarding supplementary information, (c) to include our report omthe supplementary information in any document that
contains the supplementary information and that indicates that we have reported on such supplementary information, and
(d)to present the supplementary information with the audited financial statements,or if the supplementary in formation will
not bepresented with the audited financial statements, Lomakethe audited financial statements readily available tothe
intended users of the supplementary information no later than the date Of issuance by you of the supplementary inforrrI
and our report thereon.
As part ufour audit process, we vvRN request from management and, when appropriate, those charged with governance,
written confirmation concerning representations made to us in connection with the audit.
We understand that your employees will prepare all confirmations we request and will locate any documents orinvoices
selected byusfor testing.
If you intend to publish or otherwise reproduce the financial statements and make reference to our firm,you agree to provide
LIS with printers' proofs vrmasters for our review and approval before printing,You also agree toprovide US with a copy of
the final reproduced material for our approval before itisdistributed.
monmtteytSemices
NonatLest services could include assistance with the preparation of the data collection form and its submission to the Federal
Audit Clearinghouse.We will not assume management responsibilities on behalf of the City. However,we will provide advice
and recommendations to assist management of the City in performing its responsibilities,
To the Honorable Mayor,the Members mf
City Council, and the City Manager
Apri8, I8Z2
Page 6of11
The City's management is responsible for (a) making all management decisions and performing all management functions;
(b) assignlng a competent individual to oversee the services; (c) evaluating the adequacy afthe services performed; (d)
evaivatlng and accepting responsibility for the results of the services performed;and(e)establishing and ma�ntaining internal
controls,including,monitoring ongoing activities,
Our responsibilities and limitations of the nonattest services are described below:
The nomatzestsemices are limited to the services wedescrlbed above. Our firm, in its sole professional judgment, reserves
the right to refuse to do any procedure or take any action that could be construed as making mona4emantdecisions or
assuming management respomsibi|ibe4 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 Timing
The timing of our aud�t will be scheduled for performance and completion as follows:
Document internal control and preliminary tests July 2022
Inventory observation (for material balances) September 3W, Z0I2oragreed upon
date
Perform year-end audit procedures 0ovember/mecember2O22
Issue audit reports February 2023
VVeanticipate 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 engagement and signing or authorizing another qualified
firm representative tnsign the audit report.
Our fee for the audit services will be based on the amount of time required and the difficulty of the work involved which we
estimate tobe$114,94O. The fee estimate for the audit is based on anticipated cooperation from the City's personnel and
the assumpUum that unexpected circumstances will not be encountered during the audit. If significant additional time is
necessary,we will keep you informed of any problems we encounter and our fees will be adjusted accordingly.
Our invoices 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 by the last day of the month will be assessed interest at a rate of one percent per month, If we elect
to terminate our services for nonpayment,our engagement will be deemed to have been complete even if we have not issued
our report. Yomvvi0 be obligated to compensate usfor all time expended and to reimburse usfor all out-of-pocket
expenditures through the date of termination. Our final auditors' report will be released upon final payment of any
Outstanding invoices,
You may request that we perform additional services not addressed in thiis engagement letter. If this occurs, we will
communicate with you concerning the scope of the additional services and the estimated fees, VVealso may issue eseparate
engagement letter covering the additional services. xnthe absence ofany other written communication from usdocumenting
such additional services, our services will continue to be governed by the terms of this engagement letter.
VVewould like tomake the following comments regarding the fee estimates:
1. Our fee estlmates have not considered the effects of any changes to auditing standards and accounting principles,
which may be promulgated by the AICPA,Congress,or any other regulatory body in the future and are unknown to
Tothe Honomb�eMayor,the Members of
City OouncH, and the City Manager
April 8'Z022
Page 7oft1
uyatthis time. |fsignificant additional time is necessary resulting inincreased fees,vvewill endeavor$znotify you
cfany such circumstances asthey are assessed.
2. The City's personnel are osponsib|efor the preparation nfaH items, requested in the Prepared byClient ('P8C")
listing and received bythe cleterequested. Any delays caused bynot preparing the items when requested may resub
in additional fees, aswe0 as the possibility of postponing ourfi6dwmrk, The P8[ listing will be provided to you
during the planning process ofthe engagement.
3. Time incurred for audit adjustments identified during our audit and the related additional testing required has not
been considered inour fee estimates. Prior to performing any additional testing,we will notify you of the exceptions
and obtain approval for any additional fees which may beincurred.
4. Our fee estimates are based omall general ledger sub ledgers,being reconciled tothe general ledger balance and any
adjmstmentnecessaryshmoldberecordedtothegenera| |edgerphortoourhe|dwvrkstartdate.
The ethics of our profession prohibit the renderrng of professional services where the fee for such services is contingent, or
has the appearance ofbeing oundmgeet, upon the results ufSuch services. Accordingly, itisimportant that our bills bepaid
promptly when received. If a situation arises in which it may appear that our independence would be questioned because of
significant unpaid bills,we may be prohibited from issuing our auditors' report.
imthe unlikely event that differences concerning our services nrfees should arise that are not resolved bymutual agreement,
to facilitate judicial resolution and save time and expense of both parUes,the City and Whitley Penn agree not to demand a
trial by jury in any action, proceeding,or counterclaim;arising Out of or relating to Our services and fees for this engagement,
Any controversy, dispute, or questions arising out uforin connection with this agreement or our engagement shall be
determined by arbitration conducted in accordance with the rules of the American Arbitration Association, and any decision
rendered bythe American ArWcratios Association shall he binding on both parties to this agreement. The costs ofany
arbitration shoU| be borne equally by the parties. Any and all claims in arbitration re8ating to or arising mut of th�is
contract/agreement shall be governed by the laws of the State of Texas and to the extent any iSSUe regarding the arbitration
issubmitted toacourt,including the appointment of arbitrators or confirmation of an award,the District courts in Williamison
County shall have exdusiveju6sdiction. Any action arising out of this agreement orthe services provided shall be initiated
within two years ofthe service provided.
This letter repXaces and supersedes any previous proposals,corresponclence and understanding,whether written or oraL The
agreements contained in th�s engagement letter shall survive the completion or termination of this engagement.
To ensure that Whitley Penn, LLP's independence is riot impaired under the A�CPA Code of Professional Conduct,you agree
to inform the engagement partner before entering into any substantive employment discussions with any of our personnel.
Other Matters
During the course of the engagement,we may communicate with you or your personnel via fax or e-mail, and YOU should be
aware that communication inthose mediums contains a risk nfmisdirected o,intercepted commmnications.
In the course of our services,our firm may transmit confidential information that you provided us to third parties in order to
facilitate our services. As applicable, we require confidentiality agreements with all our service providers to maintain the
confidentiality of your information and additionafly the firm,wflll take reasonable precautions to determine that our service
providers have the appropriate procedures in place to prevent the unauthorized release of confidential information to others.
We will remain uh:imately responsible for the work provided by any third-party service providers used under this agreement.
By Your signature below,you consent to having confidential information transmitted to entities outside the firm. Please feel
free to inquire if You would like adddional information regarding the transmission of confidential information to entities
outside the firm.
Tothe Honorable Mayor,the Members of
City Council, and the OtyManager
Apm8' 202Z
Page 8of11
Regarding the electronic dissemination of audited financial statements, including bnan6a| statements published
electronically on your Internet website, you understand that electronic sites are a means todistribute information and,
therefore, we are not required to read the information contained in these sites or to consider the consistency of other
information inthe electronic site with the original document.
Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non-financial data.
As such, it isyour respnnsibikityto maintain 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 vveare required bygovernment regulation, required by subpoena arother|ega�process to produce information
orourpersmnne|for|ntemiewsnrdepositionsiare|ationtoamatterievoMngthe[ity,theOtywiU.so|ongaswearenota
party or the focus of the proceeding or inquiiry in which the information is sought,reimburse us for our professional time and
expenses, as well asthe fees and expenses ofour counsel, incurred in responding to such requests.
The audit documentation for this engagement iythe property ofWhitley Penn, LLP and constitutes confidential information.
However, we maybe requested to make certain audit documentation available toyour pass-through regulatory entity and
federal agencies and the US Government Accountability Office puouiantto authority given to it by law or regulation, or to
peer reviewers. If requested,access to such audit documentation will be provided under the supervishon Whitley Penn, LLP's
personnel, Furthermore, upon request, we may provide copies of selected audit documentation to these agencies and
regulators.The regulators and agencies may intend, or decide, to distribute the copies of information contained therein to
others, including other governmental agencies.
The City may wish to include our report on these financial statements in an exempt offering document.The City agrees that
theaforememiioned auditor's report,or reference tpour Firm, will not be included [nsuch offering document vv�thoutprior
permission or consent. Any agreement 10 perform work inconnection with an exempt offering document, including an
agreement to provide permission or consent, will be a separate engagement Vetter. For exempt offerings for which we are
not involved,You wiH cleaHy indicate that we were not invoived with the contents of such offering document and a disclosure
asshown below wH0be�mdudedinthe exempt offering:
"Whitley Penn, our independent auditor, has not been engaged to perform and has not performed, since
the date wfits report included herein,any procedures on the financial statements addressed in that report.
YVhit|eyPennaysnhasnotperformadanypmceduresre|adngtothlsufferingdocmment.~
Further,we will be avakable 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 that may affect the financial statements of which You may become aware during the period
from the date ofthe auditor's report tothe date the financial statements are issued.
At the conclusion of our audit engagement, we will communicate to the City Council the following significant findings from
the audit:
• Our view about the qualitative aspects of the City's significant accounting practices;
• Significant difficulties, if any,encountered during th,e audit;
w Uncorrected m�sstatements' other than those we believe are triviw1' if any;
• Disagreements with management, ifany;
To the Honorable Mayor, the Members of
City Council, and the City Manager
April 8,2022
Page 9 of 11
• Other findings or issues,if any,arising from the audit that are,in our professional judgment,significant and relevant
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 of our audit
procedures; I
• Representations we requested from management;
• Management's consultations with other accountants, if any;and
• Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with
management.
In accordance with the requirements of Government Auditing Standards,we have attached a copy of our latest external peer
review report of our firm for your consideration and files.
Please sign and return the attached copy of this letter to indicate your acknowNeclgment of, and agreement with, the
arrangements for our audit of the, financial statements compliance over major federal award programs including our
respective responsibilities.
We appreciate the opportunity to be your financial'statement auditors and Nook forward to working with you and your staff.
Respectfully,
Austin,Texas
RESPONSE;
This letter correctly sets forth our understanding.
Acknowledged and agreed on behalf of City of Round Rock,Texas by:
Name;
Title: 67
Date: Z 2-
Name:
Title:
Date:
To the Honorable Mayor,the Members of
City Council, and the City Manager
April 8, 2022
Page 10 of 11
CfiftonLarsonAllen LLP
TAVA CLAconnedxom
REPORT ON THE FIRM'S SYSTEM OF QUALITY CONTROL
To the Partners of Whitley Penn LLP
and the NationalPeer 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.aiclog.org/lorsummary. The summary also
includes an explanation of how engagements identified as not performed or reported in 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 therewfth based on our review.
Required Selections and Considerations
Engagements selected for review included engagements performed under Govemment Auditing
Standards (including compliance audits Linder the Single Audit Act), audits of employee benefit plans,
audits performed under the Federal Deposit Insurance Corporation Improvement Act (FIDICIA), 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,, lin determining the nature andl extent of our procedures,
Ne is
To the Honorable Mayor, the Members of
City Council, and the City Manager
April 8, 2022
Page 11 of 11
Whitley Penn LLP
Page 2
Opinion
In our opinion, the system of quality control for the accounting and auditing practice of Whitley Penn
LLP applicable to engagements 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 in 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.
Clifton LarsonAllen LLP
Phoenix, Arizona
October 6, 2021