HomeMy WebLinkAbout02-02-12 LPRDA/TIRZAgendas and Agenda Materials
Meetings of the Boards of Directors
La Porte Redevelopment Authority
La Porte Tax Increment
Reinvestment Zone
February 2, 2012
NOTICE OF MEETING OF LA PORTE REDEVELOPMENT AUTHORITY
Notice is hereby given of the meeting of the La Porte Redevelopment Authority to be held Thursday,
February 2, 2012 at 6:30 p.m. in the Council Chambers of City Hall, 604 West Fairmont Parkway, La
Porte, Texas, for the purpose of considering the following agenda items:
1. Call to order — Lindsey Pfeiffer, President;
2. Consider approval of the minutes of Board of Directors meeting held on August 17, 2011;
3. Receive and consider proposals from audit firms to conduct the Redevelopment Authority's FY 2011
audit;
4. Approve Collateral Assignment of Development Agreement;
5. Consider approval or other action with regard to authority invoices;
b. Board member comments;
a. Matters appearing on agenda;
b. Inquiry of staff regarding specific factual information or existing policy
7. Adjournment.
In compliance with the American Disabilities Act, the City of La Porte City will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be
received 24 hours prior to the meetings. Please contact Patrice Fogarty, City Secretary, at
281-470-5019 or TDD 281-471-5030.
A possible quorum of city council members may be present at this meeting and participate in discussions but
will take no action.
David W. Hawes
Executive Director
O-ec.- _ayes
La Porte Redevelopment Authority,
City of La Porte, Texas
Minutes of the Board Meeting
Held August 17, 2011
I. CalI to order— Lindsay Pfeiffer, President
The Board of Directors of the La Porte Redevelopment Authority, City of La Porte, Texas, held a
meeting, open to the public, on the 27th day of April, 2011; the meeting was called to order at
6:35 p.m. in the City Council Chambers of the City council conference Room, 604 West
Fairmont Parkway, La Porte, Texas; and the roll was called of the duly appointed members of the
Board, to wit:
Peggy Antone
Position 1
Dave Turnquist
Position 2
Alton Porter
Position 3
Horace Leopard
Position 4
Doug Martin
Position 5
JJ Meza
Position 6
Lloyd Graham
Position 7
Chester Pool
Position 8
Lin Pfeiffer
Position 9 - Chairman
and all of the above were present except Director Martin, and Graham, thus constituting a
quorum_ Also present at the meeting were Steven Robinson, Ryan Lovell, Stacey Osborne, and
David Hawes.
2. Consider approval of the minutes of Board of Directors Meeting held on April 27, 2011.
Upon motion made by Director Pool, seconded by Director Meza, the board voted unanimously
to approve minutes as presented.
3. Consider Approval of the La Porte Redevelopment Authority FY 2012 Budget.
Mr. Hawes reviewed the budget with the board. Upon motion made by Director Leopard,
seconded by Director Pool, the board voted unanimously to approve the FY 2012 Budget as
presented.
4. Consider disbursement of Annual TM Revenue pursuant to developer agreement
Mr. Hawes reviewed with the board the disbursements owed to eligible developers pursuant to
their pro rasa share of tax increment value created by their projects. At this time, Port Crossing is
the only eligible developer and was owed $1,205.754 from available tax increment revenues.
Upon motion made by Director Antone, seconded by Director Turnquist, the board voted
unanimously to approve the disbursements to eligible developers as presented.
5. Consider approval of invoices.
Mr. Hawes presented the invoices. Upon a motion made by Director Pool, and being seconded
by Director Leopard, the board unanimously approved payment of the invoices.
6. Board comments ---None were offered.
7. Adjournment. The Chairman adjourned the meeting at 6:46 PM
SIGNED:
TITLE:
ATTEST:
TITLE:
DATE: DATE:
LAPORTE REDEVELOPMENT AUTHORITY
CITY OF LAPORTE, TEXAS
AUDIT PROPOSAL.
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2011
MCCALL GIBSON SWEDLUND BARFOOT PLLC
CERTIFIED PUBLIC ACCOUNTANTS
13100 Wortham Center Drive, Suite 235
Houston, TX 77065-5610
(713)462-0341
LAPORTE REDEVELOPMENT AUTHORITY
CITY OF LAPORTE, TEXAS
AUDIT PROPOSAL
FOR THE FISCAL YEAR ENDED
SEPTEMBER 30, 2011
TABLE OF CONTENTS
Page
INTRODUCTION TO BOARD
1.4
ENGAGEMENT LETTER
5_8
MOST RECENT EXTERNAL PEER REVIEW LETTER
9.11
COPY OF FIRM LICENSES
12
LIST OF REFERENCES
13
McCALL GIBSON SWEDLUND BARFOOT PLLC
Certified Public Accountants
13100 Wortham Center Drive
Suite 235
111 Congress Aveune
Houston, Texas 77065-5610
Suite 400
(713) 462-0341
Austin, Texas 78701
Fax (713) 462-2708
(512) 610-2209
E-Mail: nigsb@mgsbpltc.conr
zotuuu.mgsbpllc.ront
January 20, 2012
Board of Directors
LaPorte Redevelopment Authority
City of LaPorte, Texas
Dear Board Members:
Attached is a copy of our engagement letter for the audit of LaPorte Redevelopment Authority as of and
for the year ended September 30, 2011. It is a pleasure to have this opportunity to present our proposal.
McCall Gibson Swedlund Barfoot PLLC is a Texas CPA firm, concentrating on accounting and auditing
for local governmental and not -for -profit organizations only. In the beginning of our professional career
we recognized that there were areas within the local governmental and not -for -profit industries that had
accounting issues we enjoyed, so we chose to develop our expertise in this area. It is because of this
specialty that we believe our firm is small enough to provide the very best in personal service and lame
enough to practice the quality standards of the largest CPA firms.
In 1987, when the firm was first formed, we audited 35 water districts; today, the firm provides
accounting and auditing services to more than 260 water districts, 14 regional water and wastewater
treatment facilities, three cities, 20 emergency services districts, 14 management districts, two road
districts, one levee improvement Authority, eight improvement districts, one security district, two
development districts and three water authorities. In addition, we serve approximately 35 not -far -profit
entities including three large homeowners associations, three water supply corporations, three volunteer
fire departments and 14 redevelopment authorities.
The firm was originally formed on March 1, 1987, 25 years ago. The owners of the firm are Michael M.
(Mike) McCall, CPA, Debra A. (Debbie) Gibson, CPA, Christopher (Chris) J. Swedlund, CPA and Noel
W. Barfoot, CPA. Mike has worked in public accounting a total of 35 years, ten of those years were with
a large Iocal CPA firm and for two years he was the partner -in -charge of all municipal engagements.
Debbie has been with the firm since its inception and originally started working in public accounting in
1985. Chris joined the firm in 1994 after graduation from Abilene Christian University. Noel first
worked for the firm from 1996 until 1998 after graduation from the University of Houston. In 1999 he
moved back to his native Beaumont/Orange area; working as an audit manager for a CPA firm in
Beaumont. In 2005 Noel subsequently moved back to Houston and the firm. The last 25 years have been
challenging and we can proudly say significant strides have been made in our efforts to better serve our
clients.
Member of
American Institute of Certified Public Accountants
Texas Society of Certified Public Accountants
Board of Directors January 20, 2012
LaPorte Redevelopment Authority Page 2
Professionally we are members of the American Institute of Certified Public Accountants (AICPA) and
the Texas Society of Certified Public Accountants. In June of 1988 the firm joined the Private
Companies Practice Section (PCPS) of the AICPA. On June 25, 2011, the firm's latest peer review was
performed under the oversight of the Texas Society of Certified Public Accountants. A copy of the
reviewer's report is enclosed.
In 1997, the State Legislature required investment officers of all local governmental units to take a
minimum of 10 hours of investment training. This requirement has since been revised to 4 or 6 hours
depending on when the investment officer was appointed. We have been instrumental in following the
Legislature's requirement by providing such training to local government investment officers. In the last
15 years, we have sponsored 18 such training courses in Texas and have trained over 3,400 people. Our
investment of time and resources to present such training reflects our commitment to being a leader in this
industry. Our 2011 seminar was held on October 8, 2011. Our speakers were Linda Patterson of Austin,
Maria Parker from Sanford Kuhl Hagan Kugle Parker Kahn LLP, and Mr. Bill Gilmer from the Federal
Reserve Bank — El Paso.
In addition to the owners, the firm employs Joseph Ellis, CPA. Joseph joined the firm in 1998 as a high
school Co-op student. He graduated from the University of Houston in 2008 and passed the CPA exam in
2010. Jennifer Day, CPA joined the firm in December 2001 after graduation from Sam Houston State
University. Julia McCain, CPA joined the firm in October 2008 and is an audit manager with the firm.
Julia graduated from Texas Tech University and previously worked as an auditor with KPMG, LLP.
Brian Toldan, CPA joined the firm in January 2010 and is an audit manager with the firm. Brian has 30
years of experience as an internal auditor in the corporate world. The firm's other employees include 1 I
staff professionals with accounting degrees or comparable educational backgrounds, two para-
professional, and five administrative and clerical personnel.
FACTORS THAT DISTINGUISH US FROM OTHER FIRMS
EXPERIENCE - As of today, the firm's four partners have a combined 93 years of
experience working in accounting and auditing with 84 of those years directly related to
auditing special districts and related entities. In addition, the &m's three managers and
five seniors have a combined 55 years of experience with the firm specifically auditing
special districts and related organizations. We believe that our partners and staff are the
most experienced in the industry.
• SPECIALIZATION - We provide accounting and auditing services to local -governmental
and not -far -profit entities only.
RATES - Our billing rates include the cost of any supplies or out-of-pocket expenses
incurred.
FIELD WORK — Our auditors will be in your consultant's offices, documenting an
understanding of your system of internal control over your financial activities, performing
cut-off procedures, and testing contract compliance.
Board of Directors January 20, 2012
LaPorte Redevelopment Authority Page 3
Our approach to the audit will be to plan the audit and perform a preliminary review of your system of
internal control. We will use our standard in-house generated audit program. Most material accounts will
have a detailed test of transactions. Every audit is subject to Statement on Auditing Standard No. 115 that
requires a management letter if there are matters that are considered to be material weaknesses or
significant deficiencies in the system of internal control. By having your auditor prepare the financial
statements and prepare certain adjustments to convert from fund financial statements to an entity -wide
presentation as required by the Governmental Accounting Standards Board (GASB) Statement No. 34,
these activities by the auditor can be considered material weaknesses and could result in a management
letter, depending on the qualifications of management and consultants retained by management. This
assessment will have to be made during the audit process.
As noted in the enclosed engagement letter, the fees for audit services are expected to be as follows:
• Audit of the Authority's financial statements as of and for the year ended September 30,
2011, to range between $5,500 and $7,000
Any audit estimate we give you will not be based upon a fixed bid amount but will be based upon a
budget of 45 hours for the audit of the Authority. If during the course of performing the audit, it is
determined our estimate is not adequate because of special problems or circumstances within the
accounting records of the Authority, we will discuss the problems with the President or the Board of
Directors prior to proceeding further. See the attached schedule of hourly rates, experience and training
of the persons that will be involved in your audit.
Having you as a client is very important to us and we sincerely want to work for you. Please feel free to
give us a call if you have any questions regarding the engagement, our qualifications or the contents of
this letter.
Sincerely,
i PV,J- S2 W\ VV� _AN .
For the Firm
McCall Gibson Swedlund Barfoot PLLC
Certified Public Accountants
Board of Directors
LaPorte Redevelopment Authority
January 20, 2012
Page 4
We estimate the following classifications of personnel and budgeted hours will be required to perform the
audit:
Rates Per
Hour Hours
One Staff Professional $80 - $120 15
Experience:
Zero to four years
Training:
Degreed accountant or trained paraprofessional
Functions:
To accomplish procedures commensurate with experience
One Senior Professional, Audit Manager or Senior Professional $120 - $160 15
Experience:
Three to thirty years of auditing experience
Training:
Certified Public Accountant or Candidate
Functions:
To supervise and accept responsibility for draft report
One Partner (Shareholder) $200 9
Experience:
Fifteen to thirty-five years of experience
Training:
Certified Public Accountant
Functions:
Review, supervision and accept final report responsibility
Clerical Support Staff $50 - $80
Word processing, confirmation control and report assembly 6
Total Hours
McCALL GIBSONSWEDL7.IND BARFOOTPLLC
Certified Public Accountants
13100 Wortharn Center Drive
Suite 235
117 Congress Avenue
Houston, Texas 77065 5610
Suite 400
(713) 462-0341
Austin, Texas 78707
Fax (713) 462-2708
(512) 6I0-2209
E-Mail: ingsWingsbpttc.com
tmmumigsbpllc.com
January 20, 2012
Board of Directors
LaPorte Redevelopment Authority
City of LaPorte, Texas
We are pleased to confirm our understanding of the services we are to provide LaPorte Redevelopment
Authority (the "Authority") for the year ended September 30, 2011. We will audit the financial
statements of the governmental activities and each major fund, which collectively comprise the basic
financial statements of the Authority as of and for the year ended September 30, 2011. Accounting
standards generally accepted in the United States of America provide for certain required supplementary
information (RSI), such as management's discussion and analysis (MD&A) and the schedule of revenues,
expenditures and changes in fund balance — budget and actual for the General Fund, to accompany the
Authority's basic financial statements. Such information, although not a part of the basic financial
statements, its required by the Governmental Accounting Standards Board (GASB) who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. As part of our engagement, we will apply certain limited
procedures to the Authority's RSI in accordance with auditing standards generally accepted in the United
States of America, however, the information will not be audited and we will disclaim an opinion on such
information.
The following RSI is required by generally accepted accounting principles and will be subjected to certain
limited procedures, but will not be audited:
1) Management's Discussion and Analysis, and
2) Schedule of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual —
General Fund
Audit Objective
The objective of our audit is the expression of an opinion as to whether your basic financial statements are
fairly presented, in all material respects, in conformity with accounting principles generally accepted in
the United States of America and to report on the fairness of the supplementary information referred to on
the first page of this engagement letter when considered in relation to the financial statements taken as a
whole. Our audit will be conducted in accordance with auditing standards generally accepted in the
United States of America and will include tests of the accounting records and other procedures we
consider necessary to enable us to express such an opinion. If our opinion on the financial statements is
other than unqualified, we will fully discuss the reasons with you in advance. If for any reason, we are
unable to complete the audit or are unable to form or have not formed an opinion, we may decline to
express an opinion or to issue a report as a result of this engagement.
Member of
American Institute of Certfied Public Accaruttmrts
Texas Society of Certified Public Accountants
Board of Directors
LaPorte Redevelopment Authority
Management Responsibilities
January 20, 2012
Page 6
Management is responsible for establishing and maintaining effective internal controls, including
monitoring ongoing activities; for the selection and application of accounting principles; for the fair
presentation in the financial statements of the respective financial position of the governmental activities
for each major fund and the aggregate remaining fund information of the Authority and the respective
changes in financial position in conformity with accounting principles generally accepted in the United
States of America. Management is responsible for the basic financial statements and all accompanying
information as well as all representations contained therein. You are also responsible for making all
management decisions and performing all management functions; for designating an individual with
suitable skill, knowledge, or experience to oversee the financial statement preparation services and any
other nonattest services that we provide; and for evaluating the adequacy and results of those services and
accepting responsibility for them. Nonattest services to be provided include the preparation of the
financial statements, preparation of the appropriate capital asset schedules including calculation of
depreciation on the capital assets and preparation of the journal entries to convert the fund financial
statements to the government -wide financial statements as required by generally accepted accounting
principles.
Management is also responsible for making all financial records and related information available to us
and for the accuracy and completeness of that information. Management's responsibilities include
adjusting the financial statements to correct material misstatements and confirming to us in the
representation letter that the effects of any uncorrected misstatements aggregated by us during the current
engagement and pertaining to the latest period presented are immaterial, both individually and in the
aggregate, to the financial statements taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect
fraud, and for informing us about all known or suspected fraud or illegal acts affecting the Authority
involving (1) Management, (2) employees who have significant roles in internal control, and (3) others
where the fraud or illegal acts could have a material effect on the financial statements. Your
responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud
affecting the Authority received in communications from employees, former employees, consultants,
regulators, the public or others. In addition, you are responsible for identifying and ensuring that the
Authority complies with applicable laws and regulations.
With regard to using the auditor's report, you understand that you must obtain our written consent to
reproduce or use our report in bond offering official statements or other documents.
With regard to the electronic dissemination of audited financial statements, including financial statements
published electronically on your website, you understand that electronic sites are a means to 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.
Audit Procedures - General;
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are free of material misstatement, whether from
Board of Directors
LaPorte Redevelopment Authority
Audit Procedures - General
January 20, 2012
Page 7
(1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or
governmental regulations that are attributable to the Authority or to acts by management or employees
acting on behalf of the Authority.
Because an audit is designed to provide reasonable, but not absolute assurance, and because we will not
perform a detailed examination of all transactions, there is a risk that material misstatements may exist
and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements, or
violations of laws or governmental regulations that do not have a direct and material effect on the
financial statements. However, we will inform you of any material errors and any fraudulent financial
reporting or misappropriation of assets that come to our attention, unless clearly inconsequential. We will
also inform you of any violations of laws or governmental regulations that come to our attention, unless
clearly inconsequential. Our responsibility as auditor is limited to the period covered by our audit and
does not extend to any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, creditors,
and financial institutions. We will request written representations from your attorneys as part of the
engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will
also require certain written representations from you about the financial statements and related matters.
Audit Procedures -- Internal Control
Our audit will include obtaining an understanding of the Authority and its environment, including internal
control, sufficient to assess the risks of material misstatement of the financial statements and to design the
nature, timing, and extent of further audit procedures. An audit is not designed to provide assurance on
internal control or to identify deficiencies in internal control. However, during the audit, we will
communicate to management and those charged with governance internal control related matters that are
required to be communicated under professional standards.
Audit Procedures — Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatements, we will perform tests of the Authority's compliance with applicable laws and regulations
and the provisions of contracts and agreements. However, the objective of our audit will not be to
provide an opinion on overall compliance and we will not express such an opinion.
Engagement Administration, Fees and Other
We are aware of the State statute requiring the audit be completed within 120 days and filed with the
Texas Commission on Environmental Quality within 135 days from the closing date of the audit and
barring any unforeseen circumstances every effort will be made to comply with this rule.
In accordance with provisions of the Local Records Retention Schedule Section 2-1: Item 1025-01 e) we
agree to retain our audit work papers in our office for a period of three years after all questions arising
from the audit have been resolved. In order to allow for all questions arising from the audit to be resolved
and to comply with Rule 501.76(f) of the Rules of Professional Conduct of the Texas State Board of
Public Accountancy the actual date will be the five-year anniversary of the audit report in question.
Board of Directors January 20, 2012
LaPorte Redevelopment Authority Page 8
Engagement Administration, Fees and Other (Continued)
We expect to present a draft of the audit report within 45 days of the availability of the Authority's
accounting records. Mike McCall is the engagement partner and is responsible for supervising the
engagement and signing the report or authorizing another individual to sign the report. Our fees for these
services will be at our standard hourly rates and include any other direct charges. Our standard hourly
rates vary according to the degree of responsibility involved and the experience level of the personnel
assigned to your audit. An interim bill will be rendered for payment at the time of presentation of a draft
audit for approval by the Board of Directors and is due upon presentation. The following is an estimate of
our fees for the services included in this engagement letter.
• Audit of the Authority financial statements for the year ended September 30, 2011, to range
between $5,500 and $7,000
If for any reason our services are terminated prior to issuance of a final report, our engagement will be
deemed to have been completed, even if we have not completed our report. The Authority will be
obligated to compensate us for our time expended and to reimburse us for all out-of-pocket costs through
the date of termination. The above fee is based on anticipated cooperation from your consultants and the
assumption that unexpected circumstances will not be encountered during the audit. If significant
additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur
the additional costs.
You agree that any dispute regarding this engagement will, prior to resorting to litigation, be submitted to
mediation upon written request by either party. Both parties agree to try in good faith to settle the dispute
in mediation. The American Arbitration Association will administer any such mediation in accordance
with its Commercial Mediation Rules. The results of the mediation proceeding shall be binding only if
each of us agrees to be bound. We will share any costs of mediation proceedings equally.
We believe this letter accurately summarizes the significant terms of the engagement. If you have any
questions, please let us know. If you agree with the terms of the engagement as described in this letter,
please sign the enclosed copy and return it to us. We appreciate the confidence you have placed in us by
retaining this firm as your independent auditor in this matter
Sincerely,
McCall Gibson Swedlund Barfoot PLLC
Certified Public Accountants
This letter correctly sets forth the understanding of the Authority.
Signature
Title
Date
4
116 Texas Society of
CK Certified Public Accountants
September 2011
Michael McCall
McCall Gibson Swedlund Barfoot PLLC
13100 Wortham Center Dr Ste 235
Houston, TX 77065-5637
Dear Michael:
Congratulations on successfully completing the peer review process! Your review has been accepted by
Texas Society of CPAs' Peer Review Committee.
Enclosed please find a certificate of completion. Consider displaying this in a high traffic office area for
your staff and clients to view. In addition, you can include the fact that you're a peer reviewed firm in
your marketing materials and promote the value of such a distinction.
The Public Practice Center inside the online Resource Center on www.tscpa.org shares marketing ideas
and provides you with the latest professional news at your fingertips. Be sure to bookmark this
resource!
Being a peer reviewed firm is like having a seal of approval. You can be proud of your accomplishment
and you should let your staff and clientele share in your pride.
Sincerely,
Texas Society of Certified Public Accountants
Enclosure
In
14651 Dallas Parkway, Suite 700 - Dallas, TX 75254-7408. 972/687-8500-800/428-0272 - Fax 972/687-8646
AVl�a�s.�in�rcl
CERT7!/ED PL/DLlC,{CCOC.VT,{R'TS
Quality. Integrity. Knowledge -
System Review Report
Julie 29, 2011
To the Partners of
McCalI Gibson Swedlund Barfoot PLLC
and the Peer Review Committee of the Texas Society of CPAs
Abilene Office
First Financial Bank Building
400 Pine Street, Ste. 600, Abilene, TX 796
325.672.4000 / 800.589.2525 / f: 325.672.704
We have reviewed the system of quality control for the accounting and auditing practice of McCall
Gibson Swedlund Barfoot PLLC (the firm) in effect for the year ended January 31, 2011. 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. The
orming and reporting in
firm is responsible for designing a system of quality control and complying with it to provide the firm conformity with applicable professional
with reasonable assurance of perf
standards in all material respects. 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. The nature, objectives, scope,
limitations of, and the procedures performed in a System Review are described in the standards at
www.aicpa org(rsummary
As required by the standards, engagements selected for review included engagements performed under
Government Auditing Standards.
In our opinion, the system of quality control for the accounting and auditing practice of McCall Gibson
Swedlund Barfoot PLLC in effect for the year ended January 31, 2011, 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. McCaIl Gibson Swedlund Barfoot PLLC has received a peer review rating of
pass.
DAWS KINARD & CO, PC
-1 o-
ABILENE . HASKELL • PLAINVIEW , SEYMOUR
www.dkcpa.com
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Texas State Board of Public Accountancy
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Office License ID: W07125 Form No: 10129802
REFERENCES
Ms. Kathy Pierce
City of Kemah
1401 Hwy. 146
Kemah, Texas 77565
(281) 334-1611
Ms. Jeanne McDonald
Attorney at Law
2277 Plaza Drive, Suite 280
Sugar Land, TX 77496
(281) 313-2213
Mr. John Braden, CPA, Director
Northampton Municipal Utility District
6107 Knollview
Spring, TX 77389
(281) 873-5005
(832) 859-2987 cell
Ms. Barbara Evans
Administrative Assistant
Faulkey Gully Municipal Utility District
13310 Louetta Road
Cypress, TX 77429
(281) 320-2470
Mr. Clark Martinson, General Manager
Harris County Improvement District No. 4
Ashford V Building
14701 St. Mary's, Suite 310
Houston, TX 77079
(281) 759-3800
Mr. David Hawes, Executive Director
East Aldine Management District
Hawes Hill Calderon, LLP
10103 Fondren Road, Suite 300
Houston, TX 77096
(713) 595-1209
Mr. Phillip Givens, President
Harris County Utility District No. 15
P. O. Box 130308
Spring, TX 77393
(281) 419-9331
-13-
Mr. Harvey Reiter, President
Travis County Municipal Utility District No. 10
1405 Osprey Ridge Loop
Lago Vista, Texas 78645
(512) 267-5111 (home)
(713) 882-0493 (cell)
Ms. Diane Flynn, Director
Postwood Municipal Utility District
23202 Pine Post Lane
Spring, TX 77373
(281)821-7439
Mr. Robert J. Adam
Cy -Fair Educational Foundation
12611 Jones Road, Suite 200
Houston, TX 77070
(713)765-9310
Mr. James Byrd, General Manager
Clear Lake City Water Authority
900 Bay Area Blvd.
Houston, TX 77058
(281) 488-1164
Mr. Tim Timmons
H-M-W Special Utility District
1450 Campbell Road, Suite 202
Houston, TX 77055
(713)465-7638
Mr. Robert Fiederlein
Lockwood, Andrews & Newnam, Inc.
2925 Briarpark Drive, Suite 400
Houston, TX 77042
(713) 266-6900 x2430
sm
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4 MCCONNELL & JONES LLP
CE AT z r I E D 'I'll 6 U C A CCID U N -AN TS
TABLE OF CON`fENTS
S1=CI=.'ON
Letter of Transmittal
Qualifications to Provide Annual Audit and Financial Report Services
La Porte Redevelopment Authority
PAGE NUMBER
Tableof Contents......................................................................................................................... i
firmProfile.................................................................................................................................. 1
EngagementTeam..........................................................................................................
ProposedWork Plan................................................................................................................... 7
ClientReferences......................................................................................................................13
ProfessionalFees....................................................................................................................... 16
AppendixA: Resumes...............................................................................................................17
MCC INNEII & JOKES i_L1'
MCCONNELL & JONES LLP
January 20, 2012
L. Susan Hill
Hawes Hill Calderon LLP
10103 Fondren Rd., Suite 300
Houston, TX 77096
Dear Ms. Hill:
On behalf of McConnell & Jones LLP, we are pleased to respond to your request to provide an
independent annual financial audit for the La Porte Redevelopment Authority ("Authority") for
fiscal year 2011. We sincerely believe we are the auditors who best match your needs and
expectations. Because of our prior experience in auditing numerous governmental entities,
knowledge of governmental accounting standards, and team capabilities, we have a clear
understanding of the work to be done and can commit to providing you the highest level of
service throughout the engagement.
It is important for the Authority to have a CPA that knows the intricacies involved with
redevelopment authorities and can help you meet your reporting requirements while making the
most out of every dollar for the community. We bring a wealth of relevant experience not only
having performed numerous financial statement audits for organizations similar to the Authority,
but also having worked as an outsourced bookkeeper and accountant for several management
districts locally.
In addition to our firm qualifications and performance with similar entities, MJ also offers a highly
skilled engagement team with extensive audit experience with various management districts and
reinvestment zones which are directly applicable to the Authority. Our highly credentialed staff
has more than 80 hours of continuing education, including at least 24 hours related to the
governmental accounting and government auditing standards every two years.
We have carefully considered your objective to have the audit done to obtain comfort that all
activities and transactions of the Authority have been properly accounted for. We believe that
our prior experience demonstrates our ability to perform the audit. We are excited about the
opportunity to become your independent auditors.
In summary, we at McConnell & Jones (.t.P are very excited about this opportunity to work with the
La Porte Redevelopment Authority. We take pride in our reputation for exceptionally high quality
work and reliable client service. Thank you for the opportunity to present both our firm and our
plan for your audit. If you have any questions or comments, please call me directly at (713) 968-
1626.
Y140' 1'os4 Oak 131kid.. SUk.- !6f_K) Sincerely,_
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McConnell & Jones LLP (MJ) is a medium-sized, regional firm offering full -service public
accounting and business consulting services since 1987.
MJ is a limited liability partnership registered in the State of Texas with locations in Houston and
Dallas, Texas and Washington D.C. The firm is registered with the State of Texas Board of Public
Accountancy as a Certified Public Accounting firm.
With approximately 85 employees, the MJ staff is ethnically diverse and well-credentialed. More
than 18 languages are spoken in our offices. Additionally, 80 percent of our professional staff are
certified public accountants or possess a Master's degree. In fact, based on a 2011 survey done
by the Houston Business Journal, we are now the 14th largest accounting firm in Houston.
Our Location
All staffing for the La Porte Redevelopment Authority (the "Authority") audit services will be
provided from our Houston office located at:
McConnell & Jones LLP
3040 Post Oak Blvd., Suite 1600
Houston, TX 77056
Phone: 713.968.1600
Fax: 713.968.1601
QUAI_.IFICATIONS & EXPERIENCE OF THE FIRM
Our approach in performing the audit of the Authority is based on similar successful engagements
that we have conducted for other governmental entities including management districts. With
years of diverse expereince in performing audits and providing related services to our clients in
the governmental, nonprofit, and private sectors, MJ has established a strong practice as a
certified public accounting and consulting firm. The audit of governmental entities makes up a
significant portion of our assurance practice. We spend thousands of hours annually performing
audits for governmental entities; we look forward to applying this wealth of experience in serving
the Authority.
Because our firm has worked with a number of other management authorities, including those
listed below, MJ understands your unique audit requirements. The following are redevelopment
authorities and Tax Increment Reinvestment Zones which receive tax revenues and perform
similar community redevelopment programs to promote and encourage economic development
and opportunities that we have served in the recent past:
• South Post Oak Redevelopment Authority
• Fourth Ward Redevelopment Authority
• Midtown Redevelopment Authority
• Greater Greenspoint Management District (as a subcontractor to another firm)
MJ also provides accounting, bookkeeping and tax services to numerous management districts,
Tax Increment Reinvestment Zones, water boards and other agencies similar in nature to the
Authority. Our experience "behind the scenes" in organizations similar to yours provides a value-
MCCONNELL & JONES LLF,
Qual?rica tion.`i to Provide .=iilnual AL[dj? <ind Financial Report
La Porte Redevelopment Authority
added benefit when making recommendations to internal controls and operations. It also
enhances our ability to understand the nature of your operations as we work through the planning
process to determine the nature and extent of audit procedures to be performed during field
work. MJ currently works with the following agencies to provide these services:
• OST/ Almeda Corridors Redevelopment Authority (T1RZ 7)
• Southeast Management District
• Land Assemblage Redevelopment District
• Harris County MUD No. 148 District
In addition to the redevelopment authorities and Tax Increment Reinvestment Zones listed above,
we have experience in performing audit services for other governmental entities. Some of our
other governmental clients that also speak to our ability to conduct your examination are as
follows:
• Houston Redevelopment Authority
• Hou Tex Redevelopment Authority
• Austin Community College District
• Cedar - Bayou Navigation District
• Houston Housing Finance Corporation -Corporate Cash Fund
• Dallas County Community College District
• Coastal Water Authority
• Harris County Housing Finance Corporation - Corporate Cash Account
• Houston Area Water Corporation
• Houston Community College System
• Mental Health and Mental Retardation Authority of Harris County
• Lone Star College District
• Texas Lottey Commission
• Texas Prepaid Higher Education Tuition Board
• University of Houston System - 5 Component and Operating Units
Many of these examinations maintain governmental funds and enterprise funds, and are audited in
accordance with the Government Auditing Standards. Many of these governmental entities also
have taxing authority and receive property tax revenues as well as maintain significant investment
accounts.
We also provide auditing and tax services for numerous nonprofit organizations including
foundations. Some of our current nonprofit audit and tax clients include the following:
• Harris County Housing Finance Corporation - Corporate Cash Fund
• Houston Housing Finance Corporation - Corporate Cash Account
• Fifth Ward Community Redevelopment Corporation
• Houston Redevelopment Authority
• Dallas County Community College District Foundation
• Houston Community College Foundation
• San Jacinto Community College Foundation
• Lone Star College Foundation
• Fifth Ward Enrichment Program, Inc.
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• BP Foundation
• Memorial Hermann Community Benefits Corporation
• National Multiple Sclerosis Society - Lone Star Chapter
• Gulf Coast Community Services Association
• Houston Area Urban League, Inc.
• Community Family Centers, Inc.
• HAS Development Corporation
• Houston Business Development, Inc.
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ENGAGEMENT TEAM
CLIENT SERVICE TEAL:
A cornerstone of MJ's client service philosophy is the concept that the best resources must be
brought to bear on our most important clients. The best audit and tax engagement is only as good
as the personnel resources committed and the standards to which they are held accountable.
We have several professionals at the senior and staff levels with experience in performing audits of
governmental entities in accordance with the Government Auditing Standards. We are therefore
committing seasoned audit professionals with experience in the governmental arenas that is
directly relevant to your needs.
The client service team proposed for this engagement brings many years of combined experience,
and most are certified public accountants. MJ's professionals have extensive backgrounds in
providing auditing services for governmental organizations, and ensuring that work is adequately
planned, staff is properly supervised and the work is properly documented as promulgated by
generally accepted auditing standards.
Audit Tearn Members' Bios
The following are the bios of your audit team senior members. Detailed resumes that provide
thorough information on each team member's professional qualifications and educational
programs are attached in Appendix A.
Jonathan M. Ellis, CPA, Partner, will serve as the engagement partner. He will have overall
responsibility for overseeing the audit, ensuring audit quality, and signing the reports. Mr. Ellis has
over 13 years of experience in financial and compliance audits for various organizations including
governmental organizations, and has developed expertise in the areas of accounting, auditing,
governance and management. Mr. Ellis' extensive experience includes audit engagements of
organizations such as the South Post Oak Redevelopment Authority, Houston Redevelopment
Authority, Coastal Water Authority, Harris County Housing Finance Corporation - Corporate
Cash Account, Lone Star College System, and various other governmental agencies. He is well -
versed in developing and implementing procedures that assist clients with proper reporting of
financial information, improvements in internal controls, enhancement of operating efficiency,
compliance with regulations, and becoming more familiar with relevant accounting standards and
regulatory requirements. Mr. Ellis is a member of, and in good standing with, the AICPA, the Texas
Society of CPAs (TSCPA), and the Houston Chapter of the TSCPA and has not been subject to any
complaints or disciplinary action by the Texas State Board of Public Accountancy or other
regulatory authorities.
Godwin Okoye, CPA, Director, will serve as the audit team leader and primary point of contact.,
Mr. Okoye will have overall responsibility for coordinating and managing this engagement, and
providing weekly status reports to management. Mr. Okoye has more than 18 years of experience
in financial and compliance audits including numerous governmental orgainzations such as South
Post Oak Redevelopment Authority, Houston Redevelopment Authoirty, Hou Tex
Redevelopment Authority, Greater Greenspoint Management District, Coastal Water Authority,
Harris County Housing Finance Corporation - Corporate Cash Account, Fifth Ward Community
Redevelopment Corporation, Houston Community College System, Houston -Galveston Area
Council, and many more. Mr. Okoye is a member of, and in good standing with, the AICPA, the
Texas Society of CPAs (TSCPA), and the Houston Chapter of the TSCPA and has not been subject
to any complaints or disciplinary action by the Texas State Board of Public Accountancy or other
regulatory authorities.
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Johnson Olatunji, CPA, Senior Auditor, will serve as the supervisor of the field staff. He has
planned, conducted, and reported on various financial and compliance audit engagements. Mr.
Olatunji, with more than seven years of audit and accounting experience, is responsible for
ensuring that the field work team performs the audit in accordance with the audit plan. His
experience includes performing analytical review procedures, evaluating internal controls, testing
for the consistent application of controls, gathering audit evidence, ensuring that financial
transactions have been properly recorded and accounted for, and developing draft reports. Mr.
Olatunji is a member of, and in good standing with, the AICPA, the Texas Society of CPAs, and the
Houston Chapter of the TSCPA.
Functional Responsibility Matrix
Jonathan Ellis, CPA
Partner, Assurance Services -
Governmental and Non-
profit Sectors
Godwin Okoye
Audit Director, Assurance
Services -Governmental and
Non-profit Sectors
• Point of contact as nonprofit and governmental audit client
service partner
• Overall project supervision
• Ensure proper planning and administration of the audit in
accordance with relevant standards and guidelines
• Quality review of audit reports
• Presentation of reports to the Audit Committee and the
Board
• Point of contact as engagement manager
• Ensure proper planning and administration of the audit in
accordance with relevant standards and guidelines
• Coordinate audit team's interactions with the client
• Provide weekly status reports
• Monitor deliverables from and to the client
• Ensure compliance with relevant standards
• Perform relevant accounting and audit research
• Quality review of audit work papers and reports
• Engagement administration
Johnson Olatunji, CPA • Participate in the planning of the audit in accordance with
Senior Auditor, Assurance relevant standards and guidelines
Services -Governmental and . Lead the fieldwork and supervise field staff
Non-profit Sectors • Evaluate controls
• Perform more complex audit procedures
• Develop reports including recommendations on internal
controls
Staff Auditors • Performed prescribed procedures
• Analyze data
We provide personalized services to our clients and have invested in resources to ensure that our
technology infrastructure makes the partners, directors and supervisors accessible before, during
and after the audit. By cultivating an environment of superior client service, we ensure that audit
team members at all levels respond to client needs in an efficient and timely manner.
MC:.0 NNILL & ZONES LLP
QuS ,Iltications to Provide Annual '4ts.dit and Financial Report `,ervices
La Porte Redevelopment Authority
Our Quality Commitment
Mi provides high standard professional services that are similar to those typically associated with
large multinational firms. We have implemented a comprehensive training program to ensure that
professionals assigned to this engagement have the appropriate skills to achieve the objectives.
Our governmental audit assurance professionals exceed the required 80 hours of continuing
education every two (2) years while also maintaining the continuing education threshold required
by the U.S. government auditing standards (at least 24 hours relevant to government environment
and government auditing standards every two (2) years). This ensures that our specialists keep
abreast of the current issues and developments and consequently offer better service to our
clients.
We also employ a performance monitoring system that allows us to manage our engagements so
that each is completed effectively and within the required deadlines.
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PROPOSED WORK PLAN
DETAILED AUDITPLAN
At M), we recognize that the most important aspect of an engagement is demonstrating to
management that we have a proven track record of meeting the objectives of the engagement.
With the involvement of upper -level management in the overall planning on the front end of the
engagement, we can establish performance -monitoring systems that are tailored to the objectives
of the engagement.
The following is an overview of the advantages of Mj's audit approach, which we believe are
particularly important for this engagement.
• Continuing communications with management throughout the engagement in order to
identify and resolve accounting and reporting issues as they arise.
• Understanding the objectives of the audit, laws and regulations that have a material impact on
the financial statements, to ensure focused effort on significant risk areas.
• Coordinating the timing of our audit activities to the timing of the Authority's staff in order to
avoid conflict with their activities.
• Controlling audit costs and inconveniences by eliminating unnecessary or duplicative
questions and procedures.
M) routinely has developed a project management plan to control the quality and timing of audit
engagements to insure client deadlines are met. Our audit work plan for conducting the audit of
the Authority will be conducted in four general phases:
• Planning and Risk Assessment Phase -- The various activities we perform in this phase,
including defining for the entire engagement team the scope of the required work and
related risks, enable us to develop an overall strategy and approach for the engagement.
• Audit Plan Development Phase -- This phase enables us to develop a detailed work plan
for every aspect of the work and the related risks and deliverables. All members of the
engagement team, from the partner to the staff auditors, are directly involved in the
development of the work plan.
• Field Work Phase - This phase is where we implement the detailed work plan to meet
the engagement objectives. We conduct audit tests on transactions, balances,
documents, records, and reports to gather sufficient evidence of compliance with
policies, standards, guidelines, contracts, laws, rules, and regulations. This phase also
includes on -going collaboration and communication with the Authority's management.
• Auditor's Reports - We develop reports based on the evidence gathered from the
fieldwork, and in accordance with applicable audit reporting standards. We also develop
communication letters to management, describing recommendations for improvements
and greater efficiency when applicable.
MCCONNIELL & JONES LLP
7
Qualifications to Provide Annual Audit and Financial Rcep ri
La Porte Redevelopment Authority
After successfully executing the work plan, we will deliver draft reports and the management
letter, if applicable, to management for review. Based on our prior experience with other clients,
we anticipate a close, interactive relationship between MJ and the Authority's personnel
throughout the engagement. We welcome this relationship and look forward to working with you.
OUR DETAILED AUDIT WORK PLAN
Discussed below is our detailed audit work plan for this engagement, designed to ensure
compliance with U.S. generally accepted auditing standards.
Entrance Conference
We will conduct an entrance conference to introduce the audit team and to discuss the
deliverables, scope and timing of the requirements as set forth by management. We will discuss
our approach to the audit and initiate requests for schedules to be prepared by the Authority's
personnel and other financial related documents needed to begin the planning phase of the audit.
Prior to this entrance conference we will submit an engagement letter that describes the scope
and requirements of the audit as well as the contracted fee.
Internal Control Considerations
internal control questionnaires will be submitted to the appropriate personnel for those accounts
considered material. Upon the completion of these questionnaires, we will perform our walk-
through of these controls to determine if the controls in place can be relied upon and if
substantive procedures are necessary to test the activities and/or balances of these accounts.
rblateriality Determination
1. Analytical Review -In the planning phase, an analytical review will be performed to
identify any specific risks of financial misstatement.
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2. Determination of Material Accounts -To ensure adequate coverage of all accounts, the
following procedures will be performed:
a. A planning materiality worksheet specifically designed for governmental
organizations will be completed for all accounts.
b. Total assets from the unadjusted trial balance will be used to determine materiality,
establish material accounts and to calculate our tolerable misstatement amount by
account.
c. All balance sheet and income statement captions with dollar amounts greater than or
equal to the planning materiality dollar amounts will be considered material
accounts. In addition, all accounts assessed to have a high risk of misstatement will
be considered material accounts.
Risk Assessments
in order to plan the nature, timing and extent of substantive audit procedures, we will assess
inherent and control risks within the Authority's internal controls for financial accountability. Our
audit approach is to assess inherent risks and control risks and then adjust detection risks in order
to hold overall risk financial misstatement to an acceptable level. Risk assessment activities include
review of board minutes and external agencies' monitoring reports if any; brain -storming on risk
factors; making inquiries of management and staff; evaluating controls; developing an audit
strategy; planning the nature and timing of necessary audit procedures.
Review of Policies and Procedures
We will review the Authority's policies and procedures, including accounting, personnel, and
investment policies. Our test of transactions and inquiries of the Authority's personnel will include
tests of compliance with policies, procedures, laws, and regulations.
Substantive Testing and Analytical Procedures
Substantive testing will be performed on those material accounts in which our determination of
audit risks does not allow us to determine if those accounts are fairly stated. Substantive testing
will include analytical procedures, confirmations, examination of documents supporting selected
transactions and balances, and other procedures necessary for us to conclude on the fairness of
account balances. Final analytical procedures on the Authority's financial statements as a whole
will also be performed, to ensure that the final draft of the financial statements is supported by the
results of our audit procedures.
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La Porte Redevelopment Authority
Technical Support and Use of Technology
ProSystem FX EngagementT"', our paperless audit software helps us customize and track each
engagement and set up tailored master engagements for different client types and entities. In
addition, it enables our staff to perform work from remote locations and allow managers to review
the work papers online ensuring timely completion of the engagement. The use of technology
allows us to increase the quality and productivity of our audits. The integration of electronic files,
schedules, and documents from the client into our paperless audit system makes the flow of
information seamless and reduces file set-up time in current and subsequent years, thereby
reducing costs.
To facilitate the smooth transmission of documents and files between MJ and our clients,
especially large documents that cannot be easily emailed between servers, we use a secured web -
based Share Point software application which our clients can access and use to download or
upload documents and files.
In addition, MJ uses several research tools such as RIA Checkpoint® and PPC, which are massive
up-to-date reference libraries for accounting, auditing, internal control, compliance and financial
reporting information. These research tools are available for us to use in providing you with
needed technical support.
The extensive use of communication technology and an online reference library provides the
audit team instant access to technical support 24 hours a day. Our technical library includes all up-
to-date issues of FASB and AICPA accounting and auditing guides as well as specialized modules
such as Audit Reports, Preparing Financial Statements of organizations in different sectors
including nonprofit organizations, Fraud Risk Assessments and other specialized technical
reference modules. The engagement Partner, Manager, and other in-house industry specialists in
the audit and consulting divisions are available for technical consultations on relatively short
notice. MJ ensures that all relevant technical literature, including industry news, is kept current in
the firm libraries.
Audit Sampling
MJ uses a variety of sampling techniques including systematic sampling for sequentially numbered
data, judgment sampling, and random numbers generators for large populations that maintain any
form of structure. The sampling method to be applied will depend on the nature of the data to be
tested. We will consider the requirements of government auditing standards when determining
sample sizes.
Confirmations
We will confirm bank balances, account receivables and other account balances as we may
consider necessary in order to achieve our audit objective.
Quality Control
Our audit working papers will be subject to an in-depth quality control review process by
engagement management. MJ quality assurance controls are designed to increase the probability
that actual project performance will exceed expected project performance in terms of timeliness
and quality of audits submitted. We have purposely assigned seasoned professionals to this
engagement because of their relevant experience and professional maturity in dealing with
nonprofit sector engagements similar to the proposed audit. The MJ client service partner and
engagement manager will spend a significant portion of their effort in reviewing and directing the
staff's assigned responsibilities. In addition, all of our assurance work is subject to outside quality
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La Porte Redevelopment Authority
control reviews as required by the U.S. Generally Accepted Auditing Standards and Government
Auditing Standards.
Our quality control and review process utilizes the experience of the senior members of the audit
team, knowledge of the requirements of the audit and related accounting and auditing standards,
the overall experience of the firm in the nonprofit industry and with similar clients to ensure a
successful completion of the engagement. Our process also includes the use of certain tools such
as audit planning checklists, audit completion checklists, financial statement disclosure checklists,
audit quality control checklists, and audit supervision and approval checklist, to ensure that the
entire audit process complies with all the applicable auditing standards, and that the financial
statements and footnote disclosures are fairly presented. The checklists also enable us to ensure
that our workpaper documentation meets the requirements of the auditing standards and
conform to the firm's audit documentation policies.
Representation Letters
We will request a management representation letter to be signed by the appropriate officials of
the Authority. We may, if necessary, request and obtain an attorney representation letter relating
to contingencies concerning the Authority for the audit period and the subsequent period through
the date of our report.
Reports and Recommendations
At the completion of the audit, we will submit the audited financial statements and related
footnotes with our audit opinion to management and the Board of Directors. If during the course
of our audit we become aware of instances where improvements are necessary in internal
controls, we will document these instances along with our recommendations for improvement in
a management letter to the Authority.
Our philosophy regarding management letters is that the letter should not be punitive and should
provide the Authority with practical, value-added and long-term solutions and recommendations
on improving the design and efficiency of its systems.
fvit Conference and Audit Report Presentation
An exit conference will be arranged with management to discuss the draft report and other
matters that might need clarification or discussion. Upon the approval of the draft report by
management, we will make a detailed presentation of our audit report on the financial statements
prepared in accordance with generally accepted accounting principles, as well and any
management letter recommendations to the President and to Board of Directors. After the Board
of Directors has approved the draft reports, we will issue the signed report.
MCCONNELL. & JONES LL.P
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The proposed timeline (subject to your feedback and approval) for the audit of the financial
statements of the Authority is as follows:
February 2012 initiate communication with the Authority; obtain signed engagement
letter; make inquiries on internal control systems and procedures; send
internal control questionnaires to be completed by the Authority's
personnel.
.... .....
Week of March 1 Send document request matrix; document the audit planning
procedures, and obtain other pertinent items necessary for audit
planning.
........ _.___ ._._.... -- ---
Week of March 15 planning Begin audit t
g p g procedures.
_11-._._ ........_.. ......... . _ ._...._.. _... -- ............. -
Week of March 25 Commence audit field work.
The proposed timeline was established to provide adequate time for management to get prepared
for the audit and to resolve any issues that may arise. However, we can adjust the timeline or
commence the audit at an earlier date if needed.
Based on our prior experience with other clients, we anticipate a close, interactive relationship
between MJ and the Authority throughout the duration of the project. We welcome this
relationship and look forward to working with you, if selected to conduct these services.
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La Porte Redevelopment Authority
Sf_)Ui-H POST OAK REDEVELOPMENT AUTHORITY
South Post Oak Redevelopment Authority (SPORA) is organized to aid, assist and act on
behalf of the City of Houston in the performance of its governmental functions with respect to
promoting the common good and general welfare of the area included in the South Post Oak
Zone by developing, encouraging and maintaining housing, educational facilities, employ-
ment, commerce and economic development in the area.
Our Role: Prime Contractor
Client Contact: Jesse Bounds, City of Houston
Economic Development%TIRZ
901 Bagby
Houston, Texas 77002
(713) 837-9724
Nature of - Annual Audit Engagement - recurring (2001-present)
Services and -Agreed Upon Procedure - Construction Contract (2002 - present)
Time Frame:
Description of Annual audit in accordance with generally accepted auditing standards.
Work Performed: Authority Adopted GASB 34 in fiscal year 2002. Audit activities include
planning the engagement, development of tailored audit programs,
performing fieldwork and drafting and issuing final audit reports.
in addition to the annual financial audit of the Authority, we performed
agreed -upon procedures which were agreed to by the City of Houston
(the "City"), the Tax increment Reinvestment Zone (the 'Zone") and the
Authority, on the schedule of construction expenditures and activities of
the Authority, solely to assist in determining the reasonableness of
expenditures and their conformation to both the approved Project Plan
and Reinvestment Zone Financing Plan and Agreement Between the
City, Zone, and the Authority.
HARRIS COUNITY HOUSING FINANCE CORPORATION
CORPORATE CASH fUND
The Houston Housing Finance Corporation (the "Corporation") is a Texas public corporation,
which was incorporated on December 6, 1979, by the City of Houston, Texas in accordance
with the Texas Housing Finance Corporations Act. The purpose of the Corporation is to
provide a means to finance the cost of residential ownership and development that will
provide decent, safe, and sanitary housing at affordable prices for residents of the City of
Houston, Texas. The Corporation is a component unit of the City of Houston.
Client Contact: Janice Logan, Controller
Harris County Housing Finance Corporation
9545 Katy Freeway, Suite 105
Houston, Texas 77024
(713) 773-3405
MCC N1Nr .L St 1ONLS LL.I'
13
%3Gsi ti[C<'Itf()i15 t(.) N-.)Vl;ieAt:rli.,i? AtEtEii.:.ifid Fil]dllClc3i Report SerbiCc`.+
La Porte Redevelopment Authority
Time Frame: Calendar year 2005 to present
Description of We conducted our audits in accordance with auditing standards
Work Performed: generally accepted in the United States of America, and the AICPA
Industry Audit Guide. Activities included planning the engagement,
development of tailored audit programs, performing fieldwork and
drafting and issuing final audit reports, and other auditing procedures as
considered necessary in the circumstances.
COASTAL WATER AUTHORITY
The Coastal Water Authority (CWA) is a conservation and reclamation district created by a
Special Act of the 60th Legislature of the State of Texas in 1967. CWA manages the following
plants and systems: Lynchburg Pump Station, Luce Bayou interbasin Transfer Plant, Project
Trinity River Water Conveyance System, Lake Houston Facilities, Bayport Water System,
and CWA Water Treatment Plant. CWA provides untreated surface water to the cities of
Houston, Baytown, and Deer Park; all for municipal purposes. CWA also provides untreated
surface water to approximately 100 industries, and a few agricultural customers.
Client Contact: John Baldwin, interim Executive Director/CFO
Coastal Water Authority
500 Dallas Street, Suite 2800
Houston, Texas 77002
(713) 658-9020 (ext 16)
Time Frame: Annual Auditing Contract -- recurring (2007-present)
Description of McConnell & Jones has performed the annual financial, and compliance
Work Performed: audits of CWA's financial statements since 2007 to the present date.
We conduct the financial and compliance audits in accordance with
auditing standards generally accepted in the United States of America,
the AICPA Industry Audit Guide for governmental entities, as well as
considered the applicable annual audit report requirements of Texas
Water Districts and Authorities as promulgated by TCEQ and applicable
audit and financial rules issued by TWDB, and included other auditing
procedures as considered necessary in the circumstances. In addition to
the financial and compliance audits performed, M&J has performed
agreed upon procedures on the construction activities associated with
the Luce Bayou Project.
WHAT SETS .,MCCOtNELL & JONES APART
Our uniqueness as a professional firm with a culture of excellence and a wealth of experience in
the government industry offers several advantages. Our clients receive attention from our
designated team members that are familiar with the client organization and are current on
changes in the governmental industry. Our government audit services are consistently cost
effective and of the highest quality. The result is long lasting client relationships that are built on
trust.
MCCONNELL & JONNES LLV
Qualifid:aiion.—, t0 t'i':% !_!t' tlnual :kuditt and Financial racial Report SUrvices
La Porte Redevelopment Authority
Many factors come into consideration when making the decision about appointing an auditor for
the Authority. We believe that M) is the most knowledgeable and best -positioned auditor to
support the Authority's management team. Our audit plan includes service enhancements aimed
at adding more value through our relationship. In addition, because we already have experience
with Authorities and are intimately familiar with its activities, policies, procedures, and personnel,
selecting us as your auditors will:
➢ Provide the benefits of a fresh perspective with continuity
Maintain efficiency in the audit
Avoid the risks associated with transition to another firm
s Enable us to continue to build upon what we believe to be a sound and effective
relationship with your audit committee and management group, and
what :•ve and, vve are ➢ Limit the possibility that another firm will fail to deliver on your expectations.
;i?#ici n _ in, our agility to Our technical experience, coupled with our engagement project approach, enables us to perform
deliver ,!itstandin-T
cost effective, timely, and comprehensive engagements every year. We desire to establish a long
r sui'. lasting mutually rewarding business relationship with the Authority. We believe that this
relationship will benefit you in the following ways:
Specialized expertise. Because our government audit professionals work extensively in
specialized disciplines, they can quickly focus on those elements essential to conducting an
effective and efficient engagement. We have extensive experience performing financial statement
audits of government entities and thoroughly understand the unique reporting requirements of
government entities and the Authority in particular.
Automated processes. Our use of highly automated processes and advanced information
technology systems streamlines engagements, provides rapid responses, enhances productivity
and reduces the need for client assistance.
Committed staff. M) enjoys a comparatively low turnover rate, meaning there is little need to
retrain our staff on your engagement year after year. In addition, we have a solid record of
ensuring team leadership continuity on engagements. All the key members of our proposed
engagement team have extensive experience in providing audit services to government entities.
Hands on relationship. Our partners, directors, and managers have hands-on involvement in
providing solutions to our clients' challenges. Senior members of the engagement team are
involved in all stages of the process, ensuring that the procedures accomplish the desired
objectives and follow prescribed standards.
Client service that adds value. Very often, we hear from our clients that their financial reporting,
business operations, compliance with laws and contract agreements, and internal controls in
general have become better since engaging us to provide professional services as independent
auditors. We believe in building a strong working relationship with our clients through open and
honest communication throughout the engagement. We are confident that your experience with
us will be one of a satisfied client.
MCCCONIN :LL & j0,if_5 111'
is
Oualiflczl?:ions hi) Provide k nnual AUdii and Financial Report Service
La Porte Redevelopment Authority
PROFESSIONAL FEES
Our professional audit fees for the audit of Laporte Redevelopment Authority's financial
statements for fiscal year 2011 is estimated at $11,300.
There are several factors we considered in the preparation of our fee estimate to perform the
audit of the Authority, and these factors are as follows:
The key personnel assigned to this engagement have experience ranging from 7 to 18
years. The personnel assigned also have extensive experience having worked on clients in
the governmental segments of our practice. Our partner and Director have a larger role
in the engagement during the initial year. By assigning more experienced personnel to an
engagement of this nature, we are able to reduce the engagement team's learning curve
as well as the start up time required to effectively and efficiently perform the audit.
• We perceive our roles as advisors to our clients and encourage them to ask questions
throughout the year that would affect their accounting and reporting practices. We will
be available as needed by the Authority during the contract years for any inquiries for
specific accounting and auditing matters, as issues may arise, and we will not bill the
Authoirty for such routine inquiries.
This will be an initial year examination. During the planning phase of our engagement,
we will also perform procedures to gain an understanding of and document the system of
internal accounting controls in place. We will obtain copies of contracts, leases and other
permanent file documents to review to become familiar with the terms and provisions
included in each to ensure the proper recognition and disclosure in the financial
statements in accordance with government accounting principles generally accepted in
the United States of America.
MCCONNELL & JONES LL1'
I
Qualiflication's, to Provide .okiinUal .Aut:lit .Ind Financial Report 5:';rvices
La Porte Redevelopment Authority
JONAI;I, �i t;1. I LLIS, CPA, }'ARTi PARTNER GOVERNMENTAL 1 t�1T l & NONPROFIT
SECTOR AL)D TS
EDUCATION
Regis University; Denver, Colorado; Bachelor of Science in Accounting - 1998
PROFESSIONAL LICENSE
• Certified Public Accountant, State of Texas
• Certified Public Accountant, State of Colorado
CURRENT RESPONSIBILITIES
Mr. Ellis is a partner with McConnell & Jones LLP. He is primarily responsible for leading the firm's
governmental and nonprofit assurance services. He is independent as defined by applicable
auditing standards.
EMPLOYMENT HISTORY
Mr. Ellis joined McConnell & Jones LLP in early 2011 as the leader of the firm's governmental and
nonprofit assurance services. Prior to joining McConnell & Jones LLP, Mr. Ellis worked with the
public accounting firm of Deloitte & Touche LLP.
PROFESSIONAL EXPERIENCE RELEVANT TO THIS ENGAGEMENT
Mr. Ellis has extensive experience in the audits of nonprofit organizations. His experience includes
developing and implementing procedures that assist clients with proper reporting of financial
information, improvements in internal controls, enhancement of operating efficiency, compliance
with regulations, and becoming more familiar with relevant accounting standards and regulatory
requirements. He also adds value to clients' businesses by assisting clients with interpreting and
implementing sound accounting and audit policies. Responsibilities include engagement
administration, progress reporting, quality review, and presentation of reports to management and
audit committees.
REPRESENTATIVE GOVERNMENT/ NONPROFIT CLIENTS (ALPHABETICAL ORDER)
Mr. Ellis has provided services to various governmental and nonprofit organizations, including:
• Coastal Water Authority
• Dallas County Community College District
# Harris County Housing Finance Corporation - Corporate Cash Account
• Houston Housing Finance Corporation - Corporate Cash Fund
• Houston Redevelopment Authority
• Hou-Tex Redevelopment Authority
• Jefferson County, Colorado
• Lone Star College District
• South Post Oak Redevelopment Authority
MCCCONNELL &, J0N6 LLP
17
QiilitiCiltiOn_ to P-MVifle.` Annual Audit and Finailci<tl Rep(,)yi Servic:£,s
La Porte Redevelopment Authority
• Texas Prepaid Higher Education Tuition Board
• The Museum of Fine Arts, Houston
• The University of Texas M.D. Anderson Cancer Center
PROFESSIONAL MEMBERSHIPS
• American Institute of Certified Public Accountants
• Texas Society of Certified Public Accountants
• Houston Chapter of the Texas Society of Certified Public Accountants
SOME OF THE SEMINARS AND COURSES ATTENDED IN THE PAST TWO YEARS
• Audit Management Roundtable - December 2011
• Texas Charter Schools Association Charter School Conference - November 2011
• Texas Charter Schools Association Business Week Training - October 2011
• Audit Roundtable - July 2011
• AiCPA Nonprofit Conference - June 2011
• Project Management Roundtable - May 2011
• Form 990 - The Challenge Continues - April 2011
• Professional Skepticism and Professional Judgment for Managers - January 2011
• Public Sector Roundtable 2010 - October 2010
• Internal Controls - July 2010, September 2010
• Engagement Quality Control Review - April 2010
• Identification of Material Classes of Transactions Account Balances and Disclosures and
Assessments of Risks - March 2010
• Introduction to the Risk Based Audit Methodology - March 2010
• Enhancing the Effectiveness of Primary Reviews - March 2010
• Yearend Technical Update - January 2010
• Evaluating the impact of individual Errors - December 2009
• Revenue Recognition Emerging Accounting - October 2009
• Evaluating Errors in Previously Issued Financial Statements - October 2009
• Professional Judgment A Fresh Look - October 2009
• Professional Skepticism Exploring Advanced Concepts - October 2009
• Statement of Cash Flows - Hot Topics and Common Errors - September 2009
• Public Sector Roundtable 2009 - August 2009
• Audit Assurance Services Audit Misconceptions and Other Items Series 4 Webcast -
May 2009
MCCONNELL & JONES LLC
AmMIHI ALIdit and Financilal Rej)oirt Services
La. Porte Redevelopment Authority
o Spring Technical Update - May 2009
Engagement Economics - March 2009
Professional Ethics the Standards of Behavior for Texas CPAs - March 2009
MCCONINELL. & JONES LAP
Quallfica ions to i7i()`.ide ,}om.iai Audit and Financial Rel)ort See-,Eces
La Porte Redevelopment Authority
GODWIN OKOYE, CPA, DIRFCTOR — GOVIERNMEN AL & NONPROFIT
SECTOR AUDITS
EDUCATION
• University of Nigeria, Enugu; Bachelor of Science in Accountancy - 1985
PROFESSIONAL LICENSE
• Certified Public Accountant, State of Texas
CURRENT RESPONSIBILITIES
Mr. Okoye is currently a director with McConnell & Jones LLP. He is primarily responsible for
directing, managing, and coordinating the firm's governmental and nonprofit assurance services.
EMPLOYMENT HISTORY
Mr. Okoye joined McConnell & Jones LLP in 1999 and was appointed the director of the firm's
governmental and nonprofit assurance services in March 2008. Prior to joining McConnell &
Jones LLP, Mr. Okoye worked overseas in the public accounting firm of PricewaterhouseCoopers
for four years.
PROFESSIONAL EXPERIENCE RELEVANT TO THIS ENGAGEMENT
Mr. Okoye has extensive experience in governmental financial and compliance audits. His
experience includes developing and implementing procedures that assist clients with proper
reporting of financial information, improvements in internal controls, enhancement of operating
efficiency, compliance with regulations, and becoming more familiar with relevant accounting
standards and regulatory requirements. He also adds value to clients' businesses by assisting
clients with interpreting and implementing sound accounting and audit policies. Responsibilities
include engagement administration, progress reporting, quality review, and presentation of
reports to management and audit committees.
REPRESENTATIVE GOVERNMENT/ NONPROFIT CLIENTS (ALPHABETICAL ORDER)
• Academy of Accelerated Learning
• Austin Community College District
• BP Foundation
+ Cedar Bayou Navigation District, Texas, (Agency of State of Texas)
• Coastal Water Authority (Agency of State of Texas)
• Cooper industries Foundation
• Dallas County Community College District (including the Richland Charter High School)
• Dallas County Community College Foundation
• Fifth Ward Community Redevelopment Corporation
+ Girls and Boys Preparatory Academy
+ Greater Greenspoint Management District
MCCONNELL & JONES LLP
0
0
0
0
Qu aVi• Miont; to 1"ro: icie Annual -audit and Financial 1 ep<:rt Survi .-es
La Porte Redevelopment Authority
Harris County Housing Finance Corporation (an Enterprise Fund of Harris County, Texas)
Houston Business Development, Inc. (Enterprise Fund of the City of Houston)
Houston Community College Foundation
Houston Community College System
Houston Heights Learning Academy
Houston Redevelopment Authority
Houston Housing Finance Corporation (an Enterprise Fund of the City of Houston)
Lone Star College System
Lone Star Community College Foundation
San Jacinto College Foundation
South Post Oak Redevelopment Authority (Component Unit of the City of Houston)
Texas Lottery Commission (Agency of State of Texas)
Texas Southern University (Financial Aid audit)
Texas Southern University Foundation
Texas Tomorrow Funds (Agency of the State of Texas)
Texas Tuition Promise Fund (Enterprise Fund of the State of Texas)
Two Dimensions Preparatory Academy
Universal Academy
University of Houston Charter School
University of Houston Endowment Fund
University of Houston Systems (Audits of 5 operating units)
PROFESSIONAL MEMBERSHIPS
• American Institute of Certified Public Accountants
• Texas Society of Certified Public Accountants
• Houston Chapter of the Texas Society of Certified Public Accountants
SEMINARS AND COURSES ATTENDED IN THE RECENT YEARS
• Texas Charter Schools Association Charter School Conference - November 2011
0 Internal Controls Design, Evaluation and Communication - August 2071
0 AICPA Annual Update: Top 12 Audit Issues - August 2011
0 An Overview of the 2011 OMB Compliance Supplement -June 2011
0 Financial Stewardship- Accounting, Tax and Internal Control Considerations for Faith -
based orgnanizations - June 2011
0 Project Management Roundtable - May 2011
MCC:)NNELL & 1C)N1s 111'
27
Qualifications to Pl-o%ide'At:>tual Audit and Financial RCDOrt S_M-ViCt:S
La Porte Redevelopment Authority
o Engagement CS Consulting Onsite Training - January 2011
® Audit Integration/IT Audit - October 2010
• AICPA Conference on Governmental Accounting and Auditing - August 2010
o Not -For -Profit Organizations Audit Briefing - June 2010
• Healthcare Reform and Your Taxes - May 2010
a Accounting and Auditing Update - July 2010
o Audit Department Training - February 2010
Internal Controls - January 2010
• 2009 ARRA - Understanding Compliance & Reporting Requirement - November 2009
• 2009 AICPA Governmental and Not -for- Profit Training Program - October 2009
s What You Need to Know About Yellow Book and Single Audits - July 2009
s TACCBO Annual Conference and Training on GAAP and Financial Reporting - June 2009
• GAQC New Data Collection Form and Electronic Submission - February 2009
• Understanding Underwater Endowments - February 2009
o Risk Assesments by Auditors - January 2009
• 2008 AICPA National Governmental Audit and Accounting Update -
September 2008 (3 days)
• Governmental Accounting and Nonprofit Audits Update - May 2008
• GAQC 2008 Annual Governmental Audit Webcast Update - April 2008
• GAQC Webcast on Schedule of Expenditures of Federal Awards - Reporting Issues &
Suggested Procedures - March 2008
MCCONNELL & JONES LLI'
QUalifiCiltt_-MIS 10 PMVide Aims? A-f.lit and Financial Report Services
La Porte Redevelopment Authority
jC7tiNSi�!' C3L fL;Nfi, CPA SE;�t1 rOt)1 1iOR
Education
University of Ilorin, Nigeria, Bachelor of Science in Economics - 2000
Professional License
• Certified Public Accountant - Texas
• Chartered Accountant (ACA) - Nigeria.
Current Responsibilities
Johnson serves as Senior Auditor and is primarily responsible for leading small audit engagements,
assisting with planning larger audit engagements, assessing risks, evaluating internal controls,
performing complex audit procedures, developing recommendations for control improvements,
and drafting financial reports in conformity with U.S. Generally Accepted Accounting Principles
(GAAP).
Employment History
• McConnell & Jones LLP, Senior Auditor, March 2009 - Present
• McConnell & Jones LLP, Staff Auditor, July 2007 - February 2009
• Petroleum & Natural Gas Association, Senior Accountant, May 2005 - November 2006
• Akintola Williams Deloitte, Audit Senior, July 2001 - April 2005
Relevant Professional Experience
Johnson has over nine years of audit and accounting experience in a variety of sectors including
the governmental and nonprofit sectors, the commercial sector, and employee benefit plans. He
has led and planned numerous audit and review engagements in all of those identified sectors, as
well as various audits in accordance with Government Auditing Standards.
Representative Government Nonprofit Clients
• Association for the Advancement of Mexican Americans
• Avance Houston, Inc
• BP Foundation Incorporated
• City of Houston Annual Financial Audit
• Cooper Industries Foundation & Political Action Committee (PAC)
• Dallas County Community College District Foundation
• Fifth Ward Community Redevelopment Corporation
• Houston Area Urban League
• Houston Community College System.
• Houston Housing Finance Corporation (HHFC).
• Houston -Galveston Area Council Monitoring Reviews
• LTTS Charter School, Inc.
• MD Anderson Cancer Center - Houston
• Memorial Hermann Community Benefits Corporation
MCCONNEL.L & JONES LLP
23
Qualific tioi's k"'Pro i lt'An{2Cid1:°audit mid Financial Rej)m` Suc'wices
La Porte Redevelopment Authority
Memorial Hermann Healthcare System - (GAGAS audits).
Mental Health Mental Retardation Authority (MHMRA).
National Association for the Advancement of Colored People, Houston Chapter.
Sickle Cell Association of the Texas Gulf Coast.
South Post Oak Baptist Church
University of Houston System.
University of Texas Health Science Center - San Antonio
We Care, Inc.
Professional Memberships
• American Institute of Certified Public Accountants
• Texas Society of Certified Public Accountants (TSCPA)
• Houston Chapter of the Texas Society of Certified Public Accountants
SEMINARS AND COURSES ATTENDED IN THE RECENT YEARS
• Audit Management Roundtable - December 2011
• Engagement Management Roundtable - May 2011
• introduction to Form 5500 and EFAST2 Course Outline - April 2011
• Employee Benefit Plan Assurance and Compliance Services- April 2011
• Audit Department Training - April 2011
• Fair Value & Impairment Issues Webinar - December 2010
• What You Need To Know About Yellow Book And Single Audits - July 2009
• Single Audit of Governmental Entities -July, 2009
• AICPA National Conference on Employee Benefit Plans - May 2009
• SAS 104 - 111 Non -profits Teleconference - March 2009
• 2009 NACUBO Webcast on "Understanding Underwater Endowments" - February 2009
• Risk Assessment by Auditors -January 2009
MCCONNELL & JONES LLI'
THE NORTHERN TRUST COMPANY LOAN NO.
COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT
THIS COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT (as amended, modified
or restated from time to time, this "Assignment") dated as of JANUARY 30, 2012 (the "BLfective Date"), is
executed by PORT CROSSING LAND, LP, a Texas limited partnership ("Debtor''), with offices at 3330 S. Sam
Houston Parkway E., Houston (Harris County), TX 77047, for the benefit of THE NORTHERN TRUST
COMPANY, a state bank organized under Illinois law (together with its successors and assigns, "Lender'') with
offices at 2701 Kirby Drive, Houston (Harris County), TX 77098.
RECITALS
WHEREAS, Lender and Debtor have entered into a LOAN AGREEMENT dated as of the Effective Date
(as amended, modified or restated from time to time, the "Loan Agreement'; capitalized terms not defined herein
shall have the same meanings as in the Loan Agreement and in the Deed of Trust, as such term is defined in the
Loan Agreement).
WHEREAS, Debtor, REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS, a
tax increment reinvestment zone created by the CITY OF LA PORTE, TEXAS ("LaPorte Zone"), and LA
PORTE REDEVELOPMENT AUTHORITY, a local government corporation ("La Porte Authority" and
together with La Porte Zone, the "Counterparties"), have entered into that certain DEVELOPMENT
AGREEMENT dated as of MAY 24, 2006 as amended by that certain FIRST AMENDMENT TO
DEVELOPMENT AGREEMENT dated as of APRIL 27, 2011 between the Counterparties and Lender (true,
correct and complete copies of which are attached hereto as Exhibit A, as amended, the "DevelopmentAQreernent'},
whereby Debtor has agreed to construct improvements with respect to the real property described therein.
WHEREAS, to further secure Lender in the payment of the Indebtedness (as defined in the Loan
Agreement), Debtor desires to transfer, pledge, and assign all of Debtor's rights, title and interest in and to the
Development Agreement to Lender;
NOW, THEREFORE, in consideration of the premises herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Debtor hereby agrees in favor of Lender as follows:
I. Assignment. As security for Debtor's obligation to repay the Indebtedness, Debtor hereby
transfers, pledges, and assigns to Lender, its successors and assigns, and grants Lender a security interest in all right,
title and interest of Debtor in and to the Development Agreement, including, without limitation, all disbursement
rights, reimbursement payments, payment rights, and all other rights to payment under the Development Agreement
(the "Payment Rights"). This Assignment shall constitute a security agreement within the meaning of the Code (as
defined in the Loan Agreement). Upon the occurrence and during the continuation of an Event of Default (as such
term is defined in the Loan Agreement), Debtor hereby irrevocably instructs the Counterparties (upon receipt of
written notice from Lender that an Event of Default has occurred and is continuing) to make any and all payments
owing to Debtor under the Payment Rights directly to Lender. Counterparties are authorized to rely, without
independent inquiry, on any such notice from Lender of the occurrence and continuation of an Event of Default until
such notice shall be rescinded in writing by Lender. Any such payment shall fully discharge the Counterparties with
respect to any obligations for which the payment is made.
2. Representations and Warranties. Debtor hereby represents and warrants to Lender that:
(a) A true, correct and complete copy of the Development Agreement has been attached to
this Assignment as Exhibit A (together with all other amendments, modifications or understandings relating
thereto). The Development Agreement is in full force and effect.
(b) Debtor has not executed any prior assignment, pledge or hypothecation of its rights under
the Development Agreement or the Payment Rights. Lender has a first priority lien in the Development
COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT — PAGE I
THE NORTHERN TRUST COMPANY — PORT CROSSING LAND, LP
Agreement and the Payment Rights. Debtor will defend at its expense Lender's right, title and security
interest in and to the Development Agreement and the Payment Rights against the claims of any Hurd party.
(c) The execution, delivery, and performance of this Assignment by Debtor has been duly
authorized by all necessary action by Debtor, and this Assignment constitutes a legal, valid and binding
obligation of Debtor, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency
or similar laws of general application relating to the enforcement of creditors' rights and except to the
extent specific remedies may generally be limited by equitable principles.
(d) Debtor's execution, delivery and performance of this Assignment and the consummation
of the transactions contemplated thereby by Debtor, do not (i) conflict with, result in a violation of, or
constitute a default under (1) any provision of its organizational documents or other instrument binding
upon Debtor, (2) any law, governmental regulation, court decree or order applicable to Debtor, or (3) any
contractual obligation, agreement, judgment, license, order or permit applicable to or binding upon Debtor,
(ii) require the consent, approval or authorization of any third party which consent or approval has not been
obtained, or (iii) result in or require the creation of any lien, charge or encumbrance upon any property or
assets of Debtor except as may be expressly contemplated by this Assignment.
(e) Debtor has no actual knowledge that the Counterparties have asserted any default or non-
performance by Debtor of Debtor's duties and obligations under the Development Agreement, Debtor has
performed all of Debtor's duties and obligations which are now due and performable under the
Development Agreement, and no defense or counter -claim exists with respect to the duties and obligations
of the Counterparties under the Development Agreement.
(f) Debtor hereby certifies to Lender that (i) the amount which is owing to Debtor under the
Development Agreement is NINE MILLION NINE HUNDRED SEVENTEEN THOUSAND SIX
HUNDRED SEVENTY-SIX AND N01100 DOLLARS ($9,917,676.00) which amount includes accrued
and unpaid interest in the amount of ONE HUNDRED EIGHTEEN THOUSAND SIX HUNDRED
SIXTY-FOUR AND NO1100 DOLLARS ($118,664.00), and (ii) such aggregate sum is, as of the
Effective Date, owing without defense, offset or counterclaim by the Counterparties.
3. Covenants and Aereements. Debtor hereby covenants in favor of Lender as follows:
(a) Debtor will perform all of its duties and obligations under the Development Agreement in
accordance with the terms thereof. Debtor shall not amend, alter or modify the Development Agreement
without the express prior written consent of Lender.
(b) Debtor shall promptly notify Lender of any default by Debtor or the Counterparties in the
performance of their respective duties and obligations under the Development Agreement and shall
immediately remedy any default by Debtor thereunder.
(c) Debtor shall execute such further and additional instruments and assignments as may be
requested by Lender to vest in Lender a valid security interest in and to all rights, title and interest of
Debtor in and to the Development Agreement and the Payment Rights.
(d) Debtor will not take any action that would in any manner impair the enforceability of
Lender's security interest in the Development Agreement or the Payment Rights. Debtor (i) will, if
requested by Lender, strictly enforce the terms and conditions of the Development Agreement, and (ii) shall
not grant any waiver or indulgence with respect the Development Agreement.
4. Lender as Agent. Debtor hereby agrees as follows:
(a) Upon the occurrence and during the continuation of a Event of Default (which includes a
default under the Development Agreement), Lender shall be irrevocably appointed agent and attomey-in-
fact as to performance by Debtor of its obligations under the Development Agreement, and as to the
enforcement of Debtor's rights and remedies under the Development Agreement;
COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT — PAGE 2
THE NORTHERN TRUST COMPANY — PORT CROSSING LAND, LP
(b) All reasonable costs, expenses and liabilities incurred and payments made by Lender as
agent and attorney -in -fact shall be considered a loan by Lender to Debtor which shall be repayable on
demand and which shall bear interest at the Maturity Rate (as defined in the Note referred to in the Loan
Agreement);
(c) Regarding the existence of any Event of Default for purposes of this Assignment, Debtor
agrees that the Counterparties may rely upon written certifications from Lender that such an Event of
Default exists; and
(d) Notwithstanding the foregoing, Lender shall have no obligation whatsoever to perform
any of Debtor's obligations under the Development Agreement.
5. Foreclosure. This Assignment is executed as additional security for the payment of the
Indebtedness and all other indebtedness owing or to become owing by Debtor to Lender, and it is expressly
stipulated, covenanted and agreed that an Event of Default by Debtor under the terms of the Loan Agreement shall
constitute a default under the terms of this Assignment and that foreclosure under the Deed of Trust (as defined in
the Loan Agreement) or this Assignment shall operate to foreclose fully the rights of Debtor arising from the
Development Agreement, and in such event, all rights of Debtor under the Development Agreement shall be vested
in the successful bidder at such foreclosure. In addition, Lender shall have all other rights and remedies of a secured
parry under the Code.
6. Debtor Remains Liable. Notwithstanding anything to the contrary contained herein, (a) Debtor
shall remain liable under Development Agreement to the extent set forth therein to perform all of Debtor's duties
and obligations thereunder to the same extent as if this Assignment had not been executed; (b) the exercise by
Lender of any of its rights hereunder shall not release Debtor from any of its duties or obligations under the
Development Agreement; and (c) Lender shall not have any obligation or liability under any Development
Agreement by reason of this Assignment, nor shall Lender be obligated to perform any of the obligations or duties
of Debtor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.
7. Receipt of Payments. All payments with respect to the Payment Rights and other amounts and
proceeds received by Debtor in respect of the Development Agreement shall be received in trust for the benefit of
Lender and shall be paid to Lender as provided under Section 2(d)(ii) of the Loan Agreement. Upon payment of
such sums as are required by Section 2(d)(ii) of the Loan Agreement during any Payment Year, Debtor may retain
the balance of any amounts received in connection with any such payments received during a Payment Year
pursuant to the Development Agreement.
8. General. Debtor hereby further agrees as follows:
(a) No remedy or right conferred upon Lender by operation of law, by this Assignment, Loan
Agreement, the Deed of Trust, or by any other instrument executed by Debtor in connection therewith is
intended to be, nor shall it be, exclusive of any other right or remedy, but each and every remedy or right
shall be cumulative and shall be in addition to every other remedy or right conferred upon Debtor and each
and every such remedy or right may be pursued by Lender in such manner or order, together or separately,
and at such times as Lender may elect.
(b) If any term or provision of this Assignment, or the application thereof to any person or
circumstance shall, to any extent be invalid or unenforceable, the remainder of this Assignment, or the
application of such term or provision to persons or circumstances other than those as to which it is held
invalid or unenforceable, shall not be affected thereby, and each term and provision of this Assignment
shall be valid and be enforced to the fullest extent permitted by law.
(c) Notice provided for in this Assignment must be in writing, and shall be given or served in
the same manner as specified in the Loan Agreement.
9. Invalid Provisions. If any provision of the this Assignment are held to be illegal, invalid or
unenforceable under present or future laws, such provision shall be fully severable and the remaining provisions of
COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT — PAGE 3
THE NORTHERN TRUST COMPANY — PORT CROSSING LAND, LP
this Assignment shall remain in full force and effect and shall not be affected by the illegal, invalid or unenforceable
provision or by its severance.
10. Counter parts. This Assignment may be separately executed in any number of counterparts, each
of which shall be an original, but all of which, taken together, shall be deemed to constitute one and the same
instrument.
11. Survival. All representations and warranties made in this Assignment or in any document,
statement, or certificate furnished in connection with this Assignment shall survive the execution and delivery this
Assignment, and no investigation by Lender or any closing shall affect the representations and warranties or the
right of Lender to rely upon them.
NOTICE OF FINAL AGREEMENT.
THIS ASSIGNMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT BETWEEN THE PARTIES, AND THE SAME MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN
THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.
REMAINDER OF PAGE LEFT INTENTIONALL Y BLANK
COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT — PAGE 4
THE NORTBERN TRUST COMPANY — PORT CROSSING LAND, LP
EXECUTED as of the date of the acknowledgment below, but to be effective as of the Effective Date.
DEBTOR:
PORT CROSSING LAND, LP, a Texas limited partnership
By: Port Crossing Land GP, LLC,
a Delaware limited liability company, its general partner
By: NPH LaPorte, LP,
a Texas limited partnership, its manager
By: NPH La Porte GP, LLC,
a Texas limited liability company, its sole general partner
By:
Michael J. Plank,
Manager
By: ML Realty Partners LLC,
a Delaware limited liability company, its manager
By:
Name:
Title:
STATE OF TEXAS
COUNTY OF _
This instrument was acknowledged before me on , 2012, by MICHAEL J. PLANK,
MANAGER of NPH LA PORTE GP, LLC, a Texas limited liability company, the general partner of NPH LA
PORTE, LP, a Texas limited partnership, the manager of PORT CROSSING LAND GP, LLC, a Delaware limited
liability company, the general partner PORT CROSSING LAND, LP, a Texas limited partnership, on behalf of said
entity.
[SEAL]
Notary Public, State of Texas
STATE OF _
COUNTY OF
This instrument was acknowledged before me on , 2012, by ,
of ML REALTY PARTNERS LLC, a Delaware limited liability company, the manager of PORT
CROSSING LAND GP, LLC, a Delaware limited liability company, the general partner PORT CROSSING LAND,
LP, a Texas limited partnership, on behalf of said entity.
[SEAL]
Notary Public
COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT — PAGE 5
THE NORTHERN TRUST COMPANY — PORT CROSSING LAND, LP
CONSENT OF THE COUNTERPARTIES
THE UNDERSIGNED join in the execution of this Assignment for the purposes of (i) approving the
collateral assignment of the Development Agreement by Debtor pursuant to this Assignment, (ii) acknowledging
that Lender is relying upon the Counterparties in the performance of its obligations under the Development
Agreement in making the Ioans contemplated under the Loan Agreement, and (iii) acknowledging that Debtor owns
and holds all right, title and interest in the Development Agreement (a true and correct copy of which attached
hereto as Exhibit A). Upon written notice of the occurrence and continuation of an Event of Default, the
undersigned hereby agree to make all payments to be made to Debtor under the Development Agreement directly to
Lender for the benefit of Debtor and provided in this Assignment. The undersigned hereby confirm the amount set
forth in Section 2(h) as being the amount owing to Debtor with respect to the Development Agreement, which
amount is not subject to any offset or counterclaim as of the Effective Date.
EXECUTED as of the date of the acknowledgment below, but to be effective as of the Effective Date.
COUNTERPARTIES.
REINVESTMENT ZONE NUMBER ONE, CITY OF LA PORTE, TEXAS
By:
Name:
Title:
STATE OF TEXAS
COUNTY OF
This instrument was acknowledged before me on P 2012, by
of REINVESTMENT ZONE NUMBER ONE,
CITY OF LA PORTE, TEXAS, on behalf of said entity.
[SEAL]
Notary Public, State of Texas
SIGNATURES OF COUNTERPARTIES CONTINUED ON THE FOLL0WNG PAGE
COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT — PAGE 6
THE NORTHERN TRUST COMPANY -- PORT CROSSING LAND, LP
LA PORTE REDEVELOPMENT AUTHORITY
By:
Name:
Title:
STATE OF TEXAS
COUNTY OF
This instrument was acknowledged before me on 2012, by
on behalf of said entity. of LA PORTE REDEVELOPMENT AUTHORITY,
[SEAL]
Notary Public, State of Texas
COLLATERAL ASSIGNMENT OF DEVELOPMENT AGREEMENT — PAGE 7
THE NORTHERN TRUST COMPANY — PORT CROSSING LAND, LP
EXHIBIT A
DEVELOPMENT AGREEMENT
See Attached
DALLAS 2294561v.7
La Porte Redevelopment Authority
Cash Flow Report, FY 2009-2012
Cleared
Bank Operating Account
For
Amount Subtotal
Beginning fund balance.1011/2009
S
265.620,84
10/15/2009 City of to Porte
county TIRZ payment
$
196,067.00
1013012009 Interest deposit(0,30%)
interest
$
91.25
11/30/2009 Interest deposit (0,10%)
interest
$
78.20
1Z/31/2009 Interest deposit (0.15%)
Feterest
$
36.70
1/29/2010 interest deposit (0.10%)
interest
$
28.41
2/26/2010 Interest deposit(0.10%)
Interesl
$
22.06
3/31/2010 Interest deposit (0.10%)
interest
$
25.13
4/30/2010 Interest deposit (0.20%)
interest
$
42.59
5/31/2010 Interest deposit (0.20%)
MIMI
$
42.60
6/10/2010 Harris County tax collections
CWrdy TtRZ Payment
$
257,543.00
6/22/2010 City of La Porte tax collections
city TIRZ payment
$
562,670.33
6122/2010 LPISD tax collections
MD TIFtZ payment
$
512,646.62
6/30/2010 Interest deposit (0.20%)
interest
$
122.57
7/31/2010 Interest deposit (0,20%)
intefeat
$
130AS
8/31/2010 interest deposit (0.20%)
Interest
$
IO2.74
9/30/2010 Interest deposit (0.20%)
Interest
$
95.55
10/20/2010 City of Le Porte
prior year Increment adjustment
$
189,261,05
10/29/2010 Interesldeposit(0.20%)
interest
$
51,37
11/30/2010 Interest deposit (0.10%)
Interest
$
67.56
12/31/2010 Interest deposit (0. tO%)
interest
$
65.46
1/31/2011 Interest deposit (0.10%)
interest
$
65.46
2/28/2011 Interest deposit (0.10%)
interest
$
59.13
3/31/2011 Interest deposit (0.101%)
Interest
$
65A7
4/29/2011 Interest deposit (0.10%)
interest
$
61.21
5/3112DII Interest deposit(OA0%)
Interest
$
66.05
6/16/2011 Wire xfor City of La Porte
dty TIRZ payment
$
717,580,58
6/16/2011 Wire xfer City of La Porte
city TIRZ payment
$
591,594.44
6/30/2011 Interest deposit (0.10%)
interest
$
115.72
7/25/2011 Wire xfer City of LaPorte
county TIRZ payment
$
271,528.00
7/29/2011 Interest deposit (0.101Y.)
Interest
$
166.23
8/31/2011 Interest deposit (0.050/.)
irderest
$
139.39
9/30/2011 Interest deposit (0.05%)
Interest
$
41.88
10/31/2011 Interest deposit (0.05%)
interest
S
6,98
11/30/2011 Interest deposit (0.05%)
interest
$
41.88
12/31/2011 Interest deposit (0,05%)
interest
$
41AS
Total, Revenues
S 3,486,280.79
Cleared
Bank Expenses
Checks paid:
11/23/2009 #117 Port Crossing LP
developer rei,niwrsernent
$
165,769.15
11/29/2009 9118 Hawes HdI Calderon LLP
IM33aS,3400,3422
$
7,937.24
2/25/2010 9120 Hawes Hill Calderon LLP
rm1514.34".3sts
$
7,552.62
3131/2010 9119 Palllo Brown & Hill LLP
Interimbiakn .Win
$
3,000.00
6/aD12010 9121 VOIO CHECK
-in-1:postire
$
-
7/8/2010 #122 Pattilfo, Brown & Hell LLP
audit VFW In.ke
$
150.00
7/1/2010 #123 Hawes Hill Calderon LLP
toy 3633, 3Sss, 3sae, 3614
$
10,072.29
7/7/2010 9124 Fort Crossing
devetoperrebnbureement
$ 1,033,512.91
81512610 #125 City of La Porte
meednae.pemn
$
266.67
8/27/2010 4126 Hawes Hill Calderon LLP
1-v36a7,3666
$
5,640.07
4/27/2011 #127 Hawes HUI Calderon LLP
brv376&3874
$
17,686.39
8/22/20111 #128 Port Crossing Land LP
devebperreimbu roent
$ 1,205,754.00
8/18/2011 #129 Hawes Hill Calderon LLP
Inv 3936, 3937, 3938,39S3
$
9,763.04
Total, Checks pokf
S 2,487,104.38
Bank fees.,
6t1812010 Wire transfer
sery ce ree
S
8.00
61=010 Wire transfer
service fee
$
8.00
6/222010 Wire transfer
service fee
S
8.00
10202010 Wire transfer
aervke Fee
S
&OD
6/162011 Were transfer
Service fee
$
MOO
6/162011 Wire transfer
son, I -fee
$
10.00
725/2011 Wire transfer
service fee
$
10.00
Total, Bank fees
S 62.00
Checks outstanding
None
$
Total, Checks outstanding
S
Checks subnWed for approval
1/31/2012 #130 Hawes HfIl Calderon LLP
$
13,685.83
ToW Checks submitted
S 13.685.83
Total expenses
$ 2.4W.852.21
Fund balance, Operating Account as of January 31, 2012
Total
I
O
U
'4
fl
�
b
U
a
w
h
Q
La Porte Redevelopment Authority
Cash Flow Report, FY 2009-2012
Cleared
Bank Construction Account For
Beginning fund balance,10/0112009
10/30/2009 Interest deposit (0.30%)
11/30/2009 Interest deposit (0.16%)
12/31/2009 Interest deposit (0.15%)
1/31/2010 Interest deposit (0.10%)
2/26/2010 Interest deposit (0,10%)
3/31/2010 Interest deposit (0.10%)
4/30/2010 Interest deposit (0.20%)
5/31/2010 Interest deposit (0.20%)
613012010 Interest deposit (0.20%)
7/31/2010 Interest deposit (0.20%)
8/31/2010 Interest deposit (0.20%)
9/30/2010 Interest deposit (0.20%)
Total, revenues
Cleared
Bank Expenses
Checks paid.
11/16/2009 #114 Durwood Greene Construction Company
2/29/2010 #115 Port Crossing Land, LP
7/7/2010 #116 Port Crossing Land (PCL)
8/19/2010 #112 Jones & Caller
Total, Checks paid
Checks outstanding
none
Total, Checks outstanding
Checks submitted for approval
none
Total, Checks submitted
Total expenses
Fund balance, Construction Account as of January 31, 201
Amount Subtotal Total
$ 141,038.98
Interest
$
34.78
Interest
$
21.26
Interest
$
11.39
interest
$
8.82
interest
$
5.39
interest
$
2.03
interest
$
3.45
Interest
$
3,45
interest
$
4.06
interest
$
1.28
interest
$
0.43
interest
$
-
$ 141,135.32
$ 141,135.32
flnatpaym't
$
51,661.11
Wharton Weems
$
67.002,00
Wharton Weems
$
18,329.74
Wharton Weems
$
4,151.50
$ 141,134.35
$ 141,134.35
$ (141,134.35)
2
$ 0.97
Hawes Hill Calderon LLP
P.O. Box 22167
Houston TX 77227-2167
Bill To:
TIRZ -La Porte # 1
604 W. Fairmont Pkwy.
La Porte, TX 77571
Invoice #: 00004064
Date: 2/l/2012
Page: I
Invoice
DATE
DESCRIPTION
AMOUNT
Project Management Services, September - December 2011, January -February 2012 @ $2000 per
$12,000.00
month
2/2/2012
Board of Directors Meeting
$1,500.00
Reimbursable expenses as follows:
Mileage, D. Hawes per attachment
$43.29
9/30120I1
Hour Messenger
$49.88
In house copies 462 @ .15 each & 21 Sets @ $ 1.00 each
$90.30
In house postage
I
$2.36
i
Sales Tax:
$0.00
Total Amount:
$13,685.83
Amount Applied:
$0.00
Balance Due:
$13,685.83
Terms: C.O.D.
Ilm
n
a
O
H
®� B PAYMENTS ALSO ACCEPTED BY:
6u AMERICAN EXPRESS, MASTERCARD,
TIES [E VISA OR ELECTRONIC WIRE
TRANSFERS
281-497-2218
CUSTOMER,,". INVOI E .'
ACCOUNT, NU: NUMBER
102750 68766 10/05/11
HAWES HILL CALDERON
10103 FONDREN STE 300
HOUSTON TX 77096
102750
PAYMENTS ALSO ACCEPTED BY:
AMERICAN EXPRESS, MASTERCAR
VISA OR ELECTRONIC WIRE
TRANSFERS
281-497-2218
68766 10/05/11
HAWES HILL CALDERON
10103 FONDREN STE 300
BALANCE DUE UPON RECEIPT.
AFTER 10/20/11. PAY $217.53
09/20/11
216690
ALDINE
64.90
09/20/11
216690
ALDINE
64.90
09/ 23/11
216931.
SPRING BENCH
17.12
09/23/1_1
21.6931
SPRING BRNCH
17.12
09/23/11
216932
SPRING BRNCH
17.12
09/23/11
216932
SPRING BRNCH
17.12
09/30/11
217342
ALDINE
61.01
09/30/11
217342
ALDINE
61.01
k O9/30/11
21734.3
LA PORTE
49.88
09/30/11
217343
LA PORTE
49.88
ayable Upon Receipt 11767 Katy Prwy. Please return 11767 Katy E"rwy.
Past Due Suite 630 03 210.this portion with Suite 630 210.03
After 15 Days Houston TX 77079 payment to. Houston TX 77079
NOTICE OF MEETING OF
LA PORTE TAX INCREMENT REINVESTMENT ZONE
Notice is hereby given of the meeting of the La Porte Tax Increment Reinvestment Zone to be held
Thursday, February 2, 2012 at 6:30 p.m. in the Council Chambers of City Hall, 604 West Fairmont
Parkway, La Porte, Texas, for the purpose of considering the following agenda items:
1. Call to order — Lindsay Pfeiffer, President
2. Consider approval of the minutes of Board of Directors meeting held on August 17, 2011;
Consent agenda — any item may be removed by a board member for discussion
• Entertain motion and a second to approve the TIRZ items in the same form and manner as was approved
in the previous Redevelopment Authority meeting — Lindsey Pfeiffer, Chairperson
a. Receive and consider proposals from audit firms to conduct the Redevelopment Authority's FY 2011
audit;
b. Approve Collateral Assignment of Development Agreement;
c. Consider approval or other action with regard to authority invoices;
d. Board member comments with regard to matters appearing on agenda and inquiry of staff regarding
specific factual information or existing policy;
e. Adjournment.
In compliance with the American Disabilities Act, the City of La Porte City will provide for reasonable
accommodations for persons attending public meetings. To better serve attendees, requests should be
received 24 hours prior to the meetings. Please contact Patrice Fogarty, City secretary, at 281-470-5014
or TDD 281-471-5030.
A possible quorum of city council members may be present at this meeting and participate in discussions but
will take no action.
David W. Hawes
Executive Director
LA . ORTF-TAX I ICRE:tifFNT Rj �NiE57111X NT ZONE
cto.Hawes Hill Caldero» LLP
P.O B 22167,.:
Houstod l'X 77227-2167
713 595-12UU or FAX 7I3-541-9906
La Porte Tax Increment Reinvestment Zone Number One,
City of LaPorte, Texas
Minutes of the Board Meeting
Held August 17, 2011
Call to order — Lindsay Pfeiffer, Chairman
The Board of Directors of the La Porte Tax Increment Reinvestment Zone Number One, City
of LaPorte, Texas, held a meeting, open to the public, on the 17t' day of August 17, 2011; the
meeting was called to order at 6:46 p.m. in the City Council Conference Room of the City
Hall, 604 West Fairmont Parkway, La Porte, Texas, and the roll was called of the duly
appointed members of the Board, to wit:
Peggy Antone
Position 1
Dave Turnquist
Position 2
Alton Porter
Position 3
Horace Leopard
Position 4
Doug Martin
Position 5
JJ Meza
Position 6
Lloyd Graham
Position 7
Chester Pool
Position 8
Lin Pfeiffer
Position 9 - Chairman
and all of the above were present except Director Martin and Graham, thus constituting a
quorum. Also present at the meeting were Steven Robinson, Ryan Lovell, Stacey Osborne, and
David Hawes.
Consider approval of the minutes of the April 27, 2011 Board of Directors meetings.
Upon motion made by Director Antone, seconded by Director Tumquist, the board voted
unanimously to approve the minutes as presented.
CONSENT AGENDA — ANY ITEM MAY BE REMOVED BY A BOARD MEMBER FOR
DISCUSSION
ENTERTAIN A MOTION AND A SECOND TO APPROVE THE TIRZ ITEMS IN
THE SAME FORM AND MANNER AS WAS APPROVED IN THE PREVIOUS
REDEVELOPMENT AUTHORITY MEETING
a. Consider Approval of the La Porte Redevelopment Authority FY 2012 Budget;
b. Consider approval or other action with regard to authority invoices;
c. Board member continents with regard to matters appearing on agenda and inquiry of staff
regarding specific factual information or existing policy;
d. Adjournment.
Upon a motion duly made by Director Porter and being seconded by Director Turnquist, the board
unanimously approved the consent agenda in the same manner and form as approved in the
Redevelopment Authority Board Meeting and adjourned at 6:47 PM.
SIGNED:
TITLE:
ATTEST:
TITLE:
DATE: DATE: