4-Addendum 2- 2027 TrIF Financial Audit.pdf

RFP 26-0290 2027 Transportation Impact Fee Financial Audit Addendum No. 2, Page 1 of 11

ADDENDUM TO REQUEST FOR QUALIFICATION 26-0290

2027 TRANSPORTATION IMPACT FEE FINANCIAL AUDIT

DEVELOPMENT SERVICES

ADDENDUM NO. 2 DATE ISSUED: September 10, 2026

REQUEST FOR QUALIFICATIONS (RFQ): 26-0290

SOQ OPENING DATE: August 12,2026 (UNCHANGED)

QUESTIONS DUE DATE: September 4,2026 (UNCHANGED)

SOQ CLOSE DATE: September 17,2026 (UNCHANGED)

RFQ No. 26-0290, issued August 12,2026 is hereby amended as follows:

1. Responses to questions received are attached to this addendum as Attachment A.

All other terms and conditions remain unchanged.

Kamal Crues

Sr Capital Projects Officer, Development Services Department

By the signature affixed below, Addendum No. 2 is hereby incorporated into and made part of the above-referenced RFQ.

COMPANY NAME:____________________________________________________

SIGNATURE:_________________________________________________________

NOTE: Company name and signature must be the same as on the original bid documents. Failure to return this form with your sealed bid may constitute grounds for rejection of your offer.

https://fortworthtexas.na1.adobesign.com/verifier?tx=CBJCHBCAABAA_PIVFWCXzcGTdQ4jaqUuOIDPAOK3PALL

Addendum No. 2, Page 2 of 11

Public Q&A

Extension

Would the City consider a two-week extension to allow additional questions, review of the Q&A, and preparation of a quality response?

City’s Response:

The City will be updating its Transportation Impact Fee Study and amending its transportation impact fees in 2027. The timeframe for completing the financial audit is 180 calendar days. Due to the tight timeframes related to the Transportation Impact Fee Study, an extension cannot be granted.

Financial Audit

This RFQ is requesting a financial audit. Would the City of Fort Worth consider an agreed-upon procedures engagement as an alternative? Based on Texas Local Government Code Section 395.09(c), the “procedure / result” presentation of an agreed-upon procedures engagement would appear to lend itself well for this type of project. Similar to a financial audit, agreed-upon procedures must be performed by an independent CPA. We have seen at least one other firm perform this type of work as an agreed-upon procedures engagement.

City’s Response:

The City will consider an agreed upon procedures engagement provided that the scope meets the requirements of an independent financial audit as described in Texas Local Government Code 395.059(c). The auditor would be required to state each specific financial topic verbatim, as it is written within the Texas Local Government Code.

Experience

We do not have experience with work related to Texas Local Government Code Section 395.09(c), but we do have a significant amount of experience with other governmental compliance type work. Would that other experience suffice as representative sample work products?

City’s Response:

The City is interested in the firm’s history, success, and performance record related to the scope of work. It is incumbent upon the firm to determine if its experience with other governmental compliance type work is related to the type of work required by TxLGC Section 395.059; and

Addendum No. 2, Page 3 of 11 then to provide a record of three (3) similar audits in size and scope to this project completed within the past ten years preferably in the State of Texas.

Completeness of Accounting Records

Noting that between May 13, 2008 and present, > $285 million of transportation impact fee revenue has been collected with funds programmed and expended on 80+ capital projects city-wide, does the City of Fort Worth believe that all information necessary to complete the accounting required by Code Section 395.059 is available, including 1) all impact fees collected,

2) interest earned on those fees, 3) proposed capital improvements or facility expansions that were not constructed, 4) allocations of fee revenue, 5) unspent balances, 6) refunds and waivers, etc.?

City’s Response:

Yes, we believe that all information necessary to complete the accounting required by Code Section 395.059 is available for all 6 categories listed in the question.

Accounting Systems

Has the City of Fort Worth changed account systems between May 13, 2008 and present, and if so, is full access still available to any legacy accounting system?

City’s Response:

Yes, we changed systems from MARS to PeopleSoft in 2016. Access is available to the legacy data through our Financial Management Services (FMS) department.

Electronic Records

Related to record keeping, are all records relevant to the performance of this engagement maintained electronically, dating back to May 13, 2008?

City’s Response:

Yes, all relevant records are maintained electronically.

Capital Projects

Addendum No. 2, Page 4 of 11

Does the City of Fort Worth have separate funds, ledgers, or otherwise distinguish between the collection and use of funds for the 80+ unique capital projects dating back to May 13, 2008?

Yes.

Impact Fee Data Accessibility

Is the City information electronically stored to accommodate working remotely, or would working on-site be preferred?

City’s Response:

All relevant records are maintained electronically. Remote work is acceptable, however, meetings with the Capital Improvements Advisory Committee must be attended in-person.

Scope Time Period

In the Scope of Work portion of the RFQ, please confirm the City wants “a comprehensive analysis and assessment report of the City’s TrIF Program from inception to present” rather than from the last impact fee rate adjustment (11/1/2022) to present?

City’s Response:

The requirement for an independent financial audit was added to the Texas Local Government Code in 2025, therefore an audit must be performed starting from the inception of the program.

The scope of the independent financial audit must meet the requirements described in Texas Local Government Code 395.059(c).

Impact Fee Maintenance

Are there separate bank accounts or investment accounts for each service area impact fee or collectively or pooled with other City transactions?

City’s Response:

There are 28 transportation impact fee service areas. Impact fees are collected and tracked in separate revenue accounts for each service area.

Addendum No. 2, Page 5 of 11

Are the City’s transactions tracked in separate GL accounts by service area?

City’s Response:

There are 28 transportation impact fee service areas. Impact fees are collected and tracked in separate revenue accounts for each service area.

How are the collection of each fee tracked? Using a permit system or other system?

City’s Response:

Impact fees are collected through Accela, the City’s permitting system, and collections and transactions are tracked in Peoplesoft, our financial management system of record.

Impact Fee Agreements

Will the City be able to provide a list of contracts/agreements for the collection of impact fees for all service areas collected for the period under audit?

Will the City be able to provide a general ledger detail of all impact fees collected and the related interest earned for each service area for the period under audit?

Addendum No. 2, Page 6 of 11

Will the City be able to provide copies of the Capital Improvement Plan or Facility Expansion Plan (CIP plan) to be financed with each service area that relate to the impact fees collected?

Will the City be able to provide a detailed listing from the general ledger of the expenditures made from the impact fees, along with supporting documentation (invoices, cancelled checks, bank statements) by service area for the service period under audit?

Will the City be able to provide explanations of the status of each project in the CIP Plan and whether or not the funds have been spent yet?

Will the City be able to provide a list of any waived impact fees, refunds made from impact fees, and any errors, or credits made for the period under audit?

Form 1295 timing

Form 1295 timing: The RFQ states Form 1295 must be submitted before the contract is presented to City Council, while the supplier submission instructions identify Form 1295 as a

Addendum No. 2, Page 7 of 11 required proposal upload. Please confirm whether a completed Form 1295 is required with the September 17 SOQ submission.

Yes, a completed and signed 1295 form is required.

Sample work product:

Sample work product: Please confirm whether respondents must submit actual copies/excerpts of audit reports as sample work products in addition to describing three similar projects.

City’s Response:

A written/visual description of the sample work product is sufficient. Actual copies are not required to be submitted, however if the product is available publicly, a link the referenced document can be provided for quick access.

Sample work product page count

Sample work product page count: If actual audit samples are required, are they excluded from the 15-page SOQ limit?

Actual copies are not required to be submitted.

Confidential information in samples

Confidential information in samples: May firms redact client-confidential, proprietary, or personally identifiable information from submitted sample audit reports?

Actual copies are not required to be submitted. Confidential information should be excluded.

Independence test:

Addendum No. 2, Page 8 of 11

Independence test: Does the 12-month prohibition on providing "any other service" apply to the proposing legal entity only, or also to affiliates, subsidiaries, network firms, subcontractors, and individual proposed team members?

City’s Response:

The 12-month independence requirement applies to the prime firm and the CPA responsible for issuing the report.

12-month lookback date

12-month lookback date: Will the City test the 12-month independence period from anticipated contract execution, audit kickoff, or another defined "commencement of the audit" date?

The 12-month period is prior to the SOQ due date of 9/17/2026.

Audit period cutoff

Audit period cutoff: The scope says May 13, 2008 "through present." What specific cutoff date or fiscal/accounting period should be used for the final audit?

The specific cut-off date will be established prior to contract execution.

Data environment:

Data environment: In what systems/formats are historical impact-fee collection, project expenditure, interest, waiver, credit, and refund records maintained, particularly for records dating back to 2008?

City’s Response:

Impact fees are collected through Accela, the City’s permitting system, and collections, interest, and expenditures are tracked in Peoplesoft, our financial management system of record. Prior to 2016 funds were tracked in our legacy financial system MARS. Waivers and credit agreements are tracked through our permitting system.

Addendum No. 2, Page 9 of 11

Data completeness:

Data completeness: Has the City performed prior reconciliations of historical TrIF collections and expenditures, and are any known data gaps or legacy-system migrations expected to affect the audit?

City’s Response:

The City performs regular reconciliations of revenue accounts and completed a limited internal audit of our funds in 2025.

Service areas:

Service areas: How many transportation impact-fee service areas must be audited, and does the City expect testing/reporting to be presented separately for each service area?

City’s Response:

There are 28 transportation impact fee service areas. Impact fees are collected and tracked in separate revenue accounts for each service area. Nine of the service areas are currently no-fee collecting service areas, since the roadways within the service area boundaries have been substantially completed. Audit must be completed for all 28 service areas in alignment with the requirements of TxLGC 395.059.

Testing expectations:

Testing expectations: Does the City expect a 100% transaction review, statistically based sampling, risk-based sampling, or does it leave the testing methodology to the auditor?

City’s Response:

The scope of the independent financial audit must meet the requirements described in Texas Local Government Code 395.059(c).

Report format:

Report format: Does the City have a required report template, finding classification system, management-response format, or specific reporting standards the selected auditor must follow?

Addendum No. 2, Page 10 of 11

The City does not have a specific reporting template. The auditor would be required to state each specific financial topic verbatim, as it is written within the Texas Local Government Code 395.059(c).

Audit standards:

Audit standards: Beyond Texas Local Government Code Chapter 395, does the City require the engagement to follow any particular professional auditing standards, such as GAGAS, AICPA attestation standards, or other standards?

City’s Response:

The CPA should propose auditing standards in alignment with the scope of required by TxLGC

395.059. The City does not require any additional auditing standards.

Three in-person meetings:

Three in-person meetings: The milestone table specifies up to three meetings and references CIAC and City Council. Please clarify the anticipated third meeting/audience and whether additional meetings beyond three would require a contract amendment.

City’s Response:

The three meetings that are required to be in-person will be with the CIAC or City Council. The required in-person meetings will be limited to 3. Other meeting may be held virtually or in-person, as convenient for the auditor.

Pricing:

Pricing: Because this is an RFQ and pricing is to be negotiated with the selected firm, please confirm that no fee, rates, hours, or cost proposal should be included in the SOQ.

The statement of qualifications should not include proposed costs or hours.

Subconsultants:

Addendum No. 2, Page 11 of 11

Subconsultants: Are subconsultants permitted, and if so, must each subconsultant independently satisfy the 12-month independence provision?

City’s Response:

Subconsultants are permitted. The 12-month independence requirement applies to the prime firm and the CPA responsible for issuing the report.

Reference project geography:

Reference project geography: The RFQ says the three comparable audits should preferably be in Texas. Please confirm that equally comparable municipal impact-fee or statutory audits performed outside Texas will receive full consideration.

City’s Response:

The City is interested in the firm’s history, success, and performance record related to the scope of work. It is incumbent upon the firm to determine if its experience with other governmental compliance type work is related to the type of work required by TxLGC Section 395.059; and then to provide a record of three (3) similar audits in size and scope to this project completed within the past ten years preferably in the State of Texas.

2027 fee study coordination:

2027 fee study coordination: Will the selected financial auditor be expected to coordinate directly with the consultant preparing the City's 2027 Transportation Impact Fee Study, and if so, what information exchange or schedule dependencies are anticipated?

City’s Response:

The City will be responsible for coordinating with the consultant for the 2027 Transportation Impact Fee Study, however the consultant may periodically attend bi-weekly progress meetings, at the City’s request to ensure alignment.