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City of Colleyville Page 1
CITY OF COLLEYVILLE
AUDIT COMMITTEE AGENDA
100 Main Street, Colleyville, Texas, 76034
City Manager’s Office Conference Room
Third Floor
TUESDAY, MAY 2, 2023 - 4:30 PM
1. CALL TO ORDER
2. APPROVAL OF MINUTES
February 21, 2023
3. REGULAR AGENDA ITEMS
3a Discussion of the Request for Proposal and selection process for
external auditing services for the Fiscal Years ending September 30,
2023 through September 30, 2027
3b Interview of audit firms submitting proposals in response to the City’s
request for proposals for an external audit firm
3c Review the sealed cost portion of the audit proposals and consider a
recommendation to City Council for the selection of an audit firm
4. REPORTS
4a Quarterly Investment Report for the quarter ended March 31, 2023
4b Update on future discussion items and initiatives
5. ADJOURNMENT
I hereby certify this agenda was posted on City Hall bulletin boards Friday, April 28, 2023
by 5:00 p.m.
Christine Loven, TRMC
City Secretary
A quorum of any Colleyville board, commission, or committee may be present at this
meeting. Any matter on this agenda maybe opened for public comment and discussion at
the discretion of the governing body.
If you plan to attend this public meeting and have a disability that requires special
accommodations, please advise the City Secretary at least 48 hours in advance at
817.503.1133, and reasonable accommodations will be made to assist you.
City of Colleyville Page 1
City of Colleyville
Audit Committee
Minutes
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Tuesday, February 21, 2023
4:30 p.m.
City Manager’s Conference Room
Third Floor – City Hall
1. CALL TO ORDER
City Secretary Christine Loven called the meeting to order and called the roll.
PRESENT: Committee members George Dodson, Brandi Elder, and Chuck Kelley.
ALSO PRESENT: Director of Finance Kyle Lester, Accounting Manager Karen
Hines, City Manager Jerry Ducay, Assistant City Manager Mark Wood, City
Secretary Christine Loven, and Scotty Richardson.
2. APPROVAL OF MINUTES
January 17, 2023
The minutes were unanimously approved.
3. REGULAR AGENDA ITEMS
3a Discussion of the draft FY22 audit
Finance Director Kyle Lester introduced Meredith Churchill, partner, Weaver
Tidwell, the City’s auditor. Ms. Churchill gave an overview and explained the audit
process. She stated the City received an unmodified report, which is the highest
report that can be given. She noted there were no material weaknesses, no
significant deficiencies, and no noted noncompliance material to the financial
statements. Ms. Churchill the audit was a bit delayed due to auditing and reporting
GASBE 84, regarding leases and provided financial highlights.
Ms. Churchill thanked Kyle Lester and Karen Hines for their assistance and advised
the Committee they are good to work with and it is very appreciated.
There was discussion of providing each committee member a printed draft audit
for the committee to review prior to the next meeting and City Council approval.
It was also noted this is the last year of the contract with Weaver Tidwell and the
City will be going out for an RFP later this year. Director Lester stated Weaver
Tidwell has been good to work with and the RFP is an accepted best business
policy and does not reflect any negativity upon Weaver and Tidwell.
Audit Committee Minutes February 21, 2023
City of Colleyville Page 2
4. ADJOURNMENT
The meeting was adjourned at 4:48 p.m.
Minutes taken and prepared by:
Christine Loven, TRMC
City Secretary
City of Colleyville Page 1
CITY OF COLLEYVILLE
AUDIT COMMITTEE BRIEFING
Agenda Number 3a Agenda Date 5/2/2023 Number
Type Presentation and Discussion
Department Finance
Title
Discussion of the Request for Proposal and selection process for external auditing
services for the Fiscal Years ending September 30, 2023 through September 30, 2027
Explanation
As the five year contract for external audit services with Weaver concluded with the
audit for the Fiscal Year ended September 30, 2022, it was necessary to begin the
Request for Proposal (RFP) process for external audit services. The purpose of this item
is to discuss the attached RFP, the selection process, and answer questions from the
Audit Committee. The attached RFP was advertised in the newspaper on April 3, 2023
and April 10, 2023 and was posted on the City's website on April 3, 2023. Responses
were due on April 24, 2023.
Attachments
1. Final Audit Request for Proposal- 2023
Page 1 of 29 ` Proposer’s Initials _________
CITY OF COLLEYVILLE, TEXAS
AUDIT SELECTION COMMITTEE
REQUEST FOR PROPOSALS
FOR
PROFESSIONAL AUDITING SERVICES
100 MAIN STREET
COLLEYVILLE, TX 76034
Page 2 of 29 ` Proposer’s Initials _________
CITY OF COLLEYVILLE, TEXAS
REQUEST FOR PROPOSALS
TABLE OF CONTENTS
I. INTRODUCTION
A. General Information
B. Term of Engagement
II. DESCRIPTION OF THE CITY OF COLLEYVILLE
A. Background Information
B. Fund Structure
C. Budgetary Basis of Accounting
D. Federal and State Financial Assistance
E. Pension Plans
F. Component Units
G. Joint Ventures
H. Magnitude of Finance Operations
I. Computer Systems
J. Internal Audit Function
III. NATURE OF SERVICES REQUIRED
A. General
B. Scope of Work to be Performed
C. Auditing Standards to be Followed
D. Reports to be Issued
E. Special Considerations
F. Schedule for the 2023 Fiscal Year Audit
IV. PROPOSAL REQUIREMENT
A. General Requirements
1. Pre-proposal Conference
2. Inquiries
3. Submission of Proposals
B. Submittal timeline
1. Proposal Calendar
2. Notification and Contract Dates
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C. Technical Proposal
1. General Requirements
2. Independence
3. License to Practice
4. Firms Qualifications and Experience
5. Partner, Supervisory, and Staff Qualifications and Experience
6. Audit Engagements with Other Governmental Entities
7. Specific Audit Approach
D. Sealed Dollar Cost Bid
1. Total All-inclusive Maximum Price
2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours
Anticipated for Each
3. Rates for Additional Professional Services
4. Progress Payments
V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR
A. Finance Department
B. Statements and Schedules to be Prepared by the City of Colleyville Staff
C. Work Area, Telephones, Photocopying, and FAX Machines
D. Report Preparation
VI. WITHDRAWAL/MODIFICATION OF PROPOSALS
VII. EVALUATION PROCESS
A. Review of Proposals
B. Evaluation Criteria
C. Oral Presentations
D. Final Selection
E. Right to Reject Proposals
F. Award of Contract
VIII. GENERAL TERMS AND CONDITIONS
Page 4 of 29 ` Proposer’s Initials _________
APPENDICES
A. PROPOSER GUARANTEES
B. PROPOSER WARRANTIES
C. SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF
THE YEAR ENDED SEPTEMBER, 30, 2023 FINANCIAL STATEMENTS
D. CITY FUNDS
Page 5 of 29 ` Proposer’s Initials _________
CITY OF COLLEYVILLE
REQUEST FOR PROPOSAL (AUDITING SERVICES)
I. INTRODUCTION
A. General Information
The City of Colleyville is requesting proposals from qualified firms of certified public
accountants to audit its financial statements for the fiscal year ending September
30, 2023, with the option, at City’s sole discretion, of auditing its financial
statements for four subsequent years. These audits are to be performed in
accordance with generally accepted auditing standards.
B. Term of Engagement
A five year contract is contemplated, subject to the annual review and
recommendation of the Audit Committee, the satisfactory negotiation of terms
(including a price acceptable to both the City of Colleyville and the selected firm),
the concurrence of the Colleyville City Council and the availability of an
appropriation.
II. DESCRIPTION OF THE CITY OF COLLEYVILLE FINANCES
A. Background Information
The City of Colleyville serves an area of 13 square miles with an estimated
population of 26,057. The City's fiscal year begins on October 1st and ends on
September 30th. The City provides the following services: Police, Fire, Streets,
Parks and Recreation, Community Development, Engineering, Library,
Community Center and Utility service. In addition to the aforementioned
departments, the City has a general governmental function comprised of City
Manager's Office, City Council/Secretary, Finance, and Municipal Court. The City
has 207 full-time employees and an annual payroll of $15.5 million.
B. Fund Structure
The City’s accounting records are maintained in accordance with accounting
principles generally accepted in the United States as promulgated by the
Government Accounting Standards Board. Accordingly, the City maintains
general, special revenue, debt service and capital projects governmental fund
types; enterprise funds and fiduciary funds. For fiscal year ended September 30,
2022, the City reported the following major governmental funds: General Fund,
Debt Service Fund, Capital Projects Funds, Special Revenue Funds, Enterprise
Funds and Fiduciary Funds.
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C. Budgetary Basis of Accounting
The City Manager submits to the City Council a proposed operating budget for the
fiscal year beginning October 1. The adopted operating budget is legally enacted
through passage of an ordinance and represents the proposed fund appropriations.
Unencumbered appropriations lapse at the end of the year. Budgeted amounts may
be transferred between accounts or divisions by the City Manager on a limited basis.
The budget, as well as all revenues, appropriations, and encumbrances are recorded
in the accounting records.
Approved Fiscal Year 2023 expenditure budgets for the City's major operating
and debt service funds are as follows:
General Fund $ 25,297,424
Utility Fund 19,832,854
Drainage Fund 721,619
Debt Service Fund 769,010
D. Federal and State Financial Assistance
During the fiscal year to be audited the City of Colleyville may receive financial
assistance from the federal government in excess of $750,000. There is the
possibility in future years that this may occur.
E. Pension Plans
The City of Colleyville participates in the Texas Municipal Retirement System,
which is a joint contributory, defined benefit, multiple-employer agent type of
pension plan.
F. Component Units
There are three component units in the City of Colleyville's financial statements:
Blended Component Unit - Crime and Control and Prevention District
Blended Component Unit - Colleyville Economic Development Corporation
Discretely Presented Component Unit - Colleyville Tax Increment Financing
Reinvestment Zone Number One and One A
G. Joint Ventures
The City of Colleyville does not participate in joint ventures.
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H. Magnitude of Finance Operations
The Finance Department is headed by Kyle Lester, Finance Director and consists
of three other employees: Karen Hines, Accounting Manager, Mushtaq Ali,
Accountant and Sue Kralich, Accounting Clerk.
I. Computer Systems
Software: The City's financial software package is a Tyler Technologies software,
Munis, and following applications are in use: general ledger, cash receipts,
accounts payable, project ledger, purchase order, payroll and utility billing.
J. Internal Audit Function
Internal audit with the support of and in conjunction with city management
examines and evaluates the adequacy and effectiveness of the City’s system of
internal control and the quality of performance in carrying out assigned
responsibilities. In order to mitigate the risk of fraud, the finance staff continuously
assesses the internal controls in place to identify areas for improvements,
conducts various audits including accounts payable invoices, purchase order
compliance and cash handling audits, and educates the frontline collection
employees on proper revenue collection, handling, and depositing techniques.
The internal audits performed have been essential in detecting and correcting
internal control deficiencies before they result in significant financial losses.
III. NATURE OF SERVICES REQUIRED
A. General
The City of Colleyville is soliciting the services of qualified firms of certified public
accountants to audit its financial statements for the fiscal year ending September
30, 2023 with the option, at City’s sole discretion, to audit the City of Colleyville's
financial statements for each of the four subsequent fiscal years. These audits are
to be performed in accordance with the provisions contained in this Request for
Proposals. Please note the FY 2022 City of Colleyville Annual Financial Report
can be found at the following address on the City’s website:
https://www.colleyville.com/government/departments-a-l/finance/financial-
transparency The Fiscal Year 2023 budget is also available for viewing on the
website, using that link.
B. Scope of Work to be Performed
The City of Colleyville desires the auditor, in conformity with generally accepted
accounting principles, to express an opinion on the fair presentation of its
Page 8 of 29 ` Proposer’s Initials _________
• governmental activities
• business-type activities
• aggregate discretely presented component unit
• each of its major funds and
• aggregate remaining fund information
The auditor will not be required to audit the supporting schedules contained in
the annual comprehensive financial report. However, the auditor shall provide
an "in-relation to” opinion on the supporting schedules based upon the auditing
procedures applied during the audit of the financial statements and the
combining and individual fund financial statements and schedules. The auditor
will not be required to audit the statistical section of the report. The auditor’s
assistance and consultation will be required in implementing new GASB
statements at a date to be determined by the City, even if prior to the required
effective date. Additionally, the auditor will be required to review the City’s
compliance with requirements of the State of Texas Public Investment Funds
Act.
C. Auditing Standards to be Followed
To meet the minimum requirements of this Request for Proposals, the audit shall
be performed in accordance with generally accepted auditing standards as set
forth by the American Institute of Certified Public Accountants.
D. Required Reports
1. A report on the fair presentation of the financial statements in conformity with
generally accepted accounting principles.
2. A report to management containing any significant deficiencies and/or material
weaknesses found during the audit as defined by Statement on Auditing
Standards 112.
3. Prepare the following portions of the Annual Comprehensive Financial Report:
• Table of Contents
• Basic Financial Statements
o Statement of Net Position (Primary Government and Component
Unit)
o Statement of Activities (Primary Government and Component Unit)
• Fund Financial Statements
o Balance Sheet (Governmental Funds)
o Statement of Revenues, Expenditures and Changes in Fund
Balance (Governmental Funds)
• Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
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• Statement of Revenues, Expenditures and Changes in Fund Balances –
Budget and Actual – General Fund
• Statement of Net Position - Proprietary Fund
• Statement of Revenues, Expenses and Changes in Fund Net Position -
Proprietary Funds
• Statement of Cash Flows Proprietary Funds
• Statement of Net Position - Fiduciary Funds
• Combining and Individual Fund Statements and Schedules
o Budgetary Comparison Schedule – Debt Service Fund
o Combining Balance Sheet - Non-Major Governmental Funds
o Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Non-Major Governmental Funds
o Budgetary Comparison Schedule – Crime District Fund
o Schedule of Revenues, Expenditures and Changes in Fund
Balances – Budget and Actual
o Debt Service Fund
o Combining Statement of Changes in Fiduciary Net Position
o Statement of Changes in Assets and Liabilities - Custodial Funds
• Notes to the Financial Statements
• Required Supplementary Information
• Schedule of Changes in Net Pension Liability and Related Ratios
• Schedule of Contributions - Texas Municipal Retirement System
• Schedule of Funding Progress
• Any other Financial Section schedules necessary to meet GASB 34
compliance.
The City’s Finance Department staff will prepare:
• Transmittal Letter
• Management’s Discussion and Analysis
• Statistical Section of the Annual Financial Report to be reviewed by the
selected firm.
The City desires that the selected audit firm shall print and bind twenty (15) copies
of the Annual Financial Report and the City will supply the firm all covers and City
letterhead stock necessary for printing.
Irregularities and Illegal Acts: Auditors shall be required to make an immediate
written report of all irregularities and illegal acts of which they become aware to the
City Council, Audit Committee and City Manager.
Reporting to the City Council and Audit Committee: Auditors ensure that the
City of Colleyville's City Council and Audit Committee is informed of each of the
following:
Page 10 of 29 ` Proposer’s Initials _________
1. The auditor's responsibility under generally accepted auditing standards
2. Significant accounting policies
3. Management judgements and accounting estimates
4. Significant audit adjustments
5. Other information in documents containing audited financial statements
6. Disagreements with management
7. Management consultation with other accountants
8. Major issues discussed with management prior to retention
9. Difficulties encountered in performing the audit
10. Future accounting and auditing pronouncements that will affect the City of
Colleyville.
Working Paper Retention and Access to Working Papers
Working papers and reports shall be retained, at the auditor's expense for a
minimum of three (3) years, unless the firm is notified in writing by the City of
Colleyville of the need to extend the retention period. The auditor shall make
working papers available to the City of Colleyville, and auditors of entities of which
the City of Colleyville is a recipient of grant funds. Additionally, the firm shall
respond to the reasonable inquiries of successor auditors and allow successor
auditors to review working papers relating to matters of continuing accounting
significance.
E. Special Considerations
The City of Colleyville anticipates that it may prepare one or more official
statements in connection with the sale of debt securities, which will contain the
basic financial statements and auditor's report thereon. The auditor shall be
required, if requested by the financial advisor and/or the underwriter, to issue a
"consent and citation of expertise" as the auditor and any necessary "comfort
letters". It is also anticipated during the audit period the City may receive federal
assistance in excess of $750,000 and would require auditor to perform a single
audit.
F. Schedule for the 2023 Fiscal Year Audit (a similar schedule will be developed for audits
of future fiscal years if the City exercises its option for additional audits).
1. Interim Work
The auditor shall complete all interim work by September 22, 2023
2. Field Work
The auditor shall commence field work after October 31, 2023
The auditor shall complete all field work by November 30, 2023
3. Draft Reports
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The fund level and government wide financial statements as well as the
auditor’s lead sheets should be provided to finance by January 8, 2024. A
complete draft of the Annual Financial Report and recommendations to
management should be available, in searchable pdf format, for review by the
City staff by January 15, 2024.
4. Audit Committee Review
The auditor will have a draft of the audit and SAS letter ready for audit
committee meeting by February 6, 2024
5. Audit Approval
The auditor will have the final report ready for approval by Council on February
20, 2024.
IV. PROPOSAL REQUIREMENT
A. General Requirements
1. Pre-proposal Conference
A non-mandatory conference for firms interested in submitting proposals will be
held on Friday, April 14, 2023 at 1:00 PM in the Executive Conference Room, 3rd
Floor of City Hall, at 100 Main Street, Colleyville, Texas. Both verbal and written
questions will be accepted during the conference. If a representative from your
firm is unable to attend, please direct all questions to Karen Hines, Accounting
Manager at (817) 503-1015.
2. Inquiries
Inquiries concerning the request for proposals and the subject of the request for
proposals must be made to Karen Hines, Accounting Manager: e-mail:
khines@colleyville.com / phone: (817) 503-1015.
3. Submission of Proposals
To be considered a total of eight (8) copies of a proposal must be received by
Karen Hines at Colleyville City Hall, 100 Main Street, Colleyville, Texas by 11:00
AM CST on Monday, April 24, 2023. Proposals submitted will be evaluated by a
five-member Audit Selection Committee composed of Kyle Lester, Finance
Director, Karen Hines, Accounting Manager, Mushtaq Ali, Accountant, Sue Kralich,
Accounting Clerk, and Jesse Perez, Human Resources Director. During the
evaluation process, the Audit Selection Committee and the City of Colleyville
reserve the right, where it may serve the City of Colleyville's best interest, to
request additional information or clarification from proposers. Firms receiving an
acceptable technical score will be requested to make oral presentations on
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Tuesday, May 2, 2023 as part of the evaluation process. These presentations will
be made to the Audit Committee and the Audit Selection Committee.
The City of Colleyville reserves the right to retain all proposals submitted.
Submission of a proposal indicates acceptance by the firm of the conditions
contained in this Request for Proposal, unless otherwise clearly and specifically
noted in the proposal submitted and confirmed in the contract between the City of
Colleyville and the firm selected. It is anticipated that selection of a firm will be
completed by Friday, May 5, 2023, and the contract will be presented to the City
Council at the May 16, 2023 meeting.
The following material shall be received, as specified herein, by 1:00 PM CST on
Monday, April 24, 2023, for a proposing firm to be considered:
a. A master copy (so marked) of a Technical Proposal and eight (8) copies to
include the following:
i. Title Page - Title page showing the request for proposal's subject;
the name address and telephone number of a contact person; and
the date of the proposal.
ii. Table of Contents
iii. Transmittal Letter - A signed letter of transmittal briefly stating
the proposer's understanding of the work to be done, the
commitment to perform the work within the time period, a statement
why the firm believes itself to be the best qualified to perform the
engagement and a statement that the proposal is a firm and
irrevocable offer for the period ending September 30, 2023.
iv. Detailed Proposal - The detailed proposal should follow the order
set forth in Section VI B of this request for proposals.
v. Audit Request for Proposal Form - Include an initialed copy of
this Audit Request for Proposals form.
vi. Executed copies – Fully executed copies of Proposer
Guarantees and Proposer Warranties, attached to this Request for
Proposals
b. The proposer shall submit an original and eight (8) copies of a dollar cost bid
in a separate sealed envelope marked as follows:
SEALED DOLLAR COST BID PROPOSAL FOR CITY OF COLLEYVILLE
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FOR PROFESSIONAL AUDITING SERVICES - APRIL 24, 2023
c. The proposer should send the completed proposal consisting of the two
separate envelopes to the following address:
CITY OF COLLEYVILLE
100 MAIN STREET
COLLEYVILLE, TX 76034
ATTN: KAREN HINES, ACCOUNTING MANAGER
Mailed and/or hand delivered proposals will be accepted up to 11:00 AM CST on
Monday, April 24, 2023. City Hall is located at 100 Main Street, Colleyville, TX.
The Finance Department is located on the first floor.
B. Submittal timeline
1. Proposal Calendar
The following is a list of key dates up to and including the date proposals are due
to be submitted:
Request for proposals issued April 3, 2023
Pre-proposal Conference April 14, 2023
Due Date for Proposals April 24, 2023
Oral Presentations to Committee May 2, 2023
2.. Notification and Contract Dates
Selected Firm Notified May 5, 2023
Contract to Council May 16, 2023
C. Technical Proposal
1. General Requirements
The purpose of the technical proposal is to demonstrate the qualifications,
competence and capacity of the firms seeking to undertake an independent audit
of the City of Colleyville in conformity with the requirements of this Request for
Proposals. As such, the substance of the proposals will carry more weight than
their form or manner of presentation. The technical proposal should demonstrate
the qualifications of the firm and of the particular staff to be assigned to this
engagement. It should also specify an audit approach that will meet the request
for proposals requirements. THERE SHOULD BE NO DOLLAR UNITS OR
TOTAL COSTS INCLUDED IN THE TECHNICAL PROPOSAL DOCUMENT.
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The technical proposal should address all the points outlined in the request for
proposals (excluding any cost information, which should only be included in the
sealed dollar cost bid.) The proposal should be prepared simply and economically,
providing a straightforward, concise description of the proposer’s capabilities to
satisfy the requirements of the request for proposals. While additional data may
be presented, the following subjects, items Nos. 2 through 7, must be included.
They represent the criteria against which the proposal will be evaluated.
2. Independence
The firm shall provide an affirmative statement that it is independent of the City of
Colleyville as defined by generally accepted auditing standards.
3. License to Practice
An affirmative statement shall be included indicating that the firm and all assigned
key professional staff are properly licensed to practice in the State of Texas.
4. Firms Qualifications and Experience
The proposal shall state the size of the firm, the size of the firm's governmental
staff, the location of the office from which the work on this engagement is to be
performed and the number and nature of the professional staff to be employed in
this engagement and the number and nature of the professional staff to be so
employed on a part time basis. A copy of the most recent peer review should be
included.
5. Partner, Supervisory, and Staff Qualifications and Experience
The firm shall identify the principal supervisory and management staff, including
engagement partners, managers, other supervisors and specialists, who would be
assigned to the engagement and indicate whether each such person is licensed to
practice as a certified public accountant in the State of Texas. The firm shall also
provide information on the government auditing experience of each person,
including information on relevant continuing professional education for the past two
(2) years and membership in any governmental professional organizations.
The firm shall also provide as much information as possible regarding the number,
qualifications, experience and training, including relevant continuing professional
education, of the specific staff to be assigned to this engagement. The firm also
shall indicate how the quality of the staff over the term of the agreement would be
assured.
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Engagement partners, managers, other supervisory staff and specialists may be
changed if those personnel leave the firm, are promoted or are assigned to another
office. These personnel may also be changed for other reasons with the express
written permission of the City of Colleyville. However, in either case, the City of
Colleyville retains the right to approve or reject replacements. Other audit
personnel may be changed at the discretion of the proposer provided that
replacements have substantially the same or better qualifications or experience.
6. Audit Engagements with Other Governmental Entities
The firm shall list separately all governmental audit engagements within the past
three years, which were performed by the proposing office location, including how
many years that city was audited by the firm. Also include an Annual Financial
Report from one of the listed audit engagements, which was prepared by firm staff
during the past year, or provide a link if the Annual Financial Report is available on
the engaged city’s web site.
7. Specific Audit Approach
The proposal shall set forth a work plan, including an explanation of the audit
methodology to be followed, to perform the services required in Section III of this
Request for Proposals.
a. Proposed segmentation of the engagement
b. Level of staff and the number of hours to be assigned to each proposed
segment of the engagement
c. Sample sizes and the extent to which statistical sampling is to be used in
the engagement
d. Extent and use of software in the engagement
e. Type and extent of analytical procedures to be used in the engagement
f. Approach to be undertaken to gain and document an understanding of the
City of Colleyville's internal control structure
g. Approach in meeting requirements of SAS 99 and SAS 112 in the
engagement
D. Sealed Dollar Cost Bid
1. Total All-inclusive Maximum Price
The sealed dollar cost bid should contain all pricing information relative to
performing the audit engagement and Annual Financial Report preparation and
printing. The total all-inclusive maximum price to be bid is to contain all direct and
indirect costs including all out-of-pocket and travel expenses.
The City of Colleyville shall not be responsible for expenses incurred in preparing
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and submitting the technical proposal or the sealed dollar cost bid. Such costs
should not be included in the proposal.
The first page of the sealed dollar cost should include the following information:
a. Name of Firm.
b. Certification that the person signing the proposal is entitled to represent the
firm, empowered to submit the bid and authorized to sign a contract with the
City of Colleyville.
c. A total All-inclusive Maximum Price for the fiscal year 2023 engagement
including Annual Financial Report preparation and printing.
2. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours
Anticipated for Each
The second page of the sealed dollar cost bid should include a schedule of
professional fees and expenses, presented in the format provided in the
attachment (Appendix F, part 1). The price for special services as described in
Section II F of this Request for Proposals should be disclosed on the format
provided in Appendix C, part 2.
3. Rates for Additional Professional Services
If it should become necessary for the City of Colleyville to request the auditor to
render any additional services to either supplement the services requested in this
Request for Proposals or to perform additional work as a result of the specific
recommendations included in any report issued on this engagement, then such
additional work shall be performed only if set forth in an addendum to the contract
between the City of Colleyville and the firm. Any such additional work agreed to
between the City of Colleyville and the firm shall be performed at the same rates
set forth in the schedule of fees and expenses included in the sealed dollar cost
bid. The City reserves the right to contract any additional audits or reviews or
additional work with whomever they choose.
4. Progress payments
Progress payments will be made on the basis of hours of work completed during
the course of the engagement incurred in accordance with the firm's dollar cost bid
proposal. Interim billings shall cover a period of not less than a calendar month.
The City of Colleyville will remit payment to the firm within thirty days of receipt of
an accurate invoice.
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V. ASSISTANCE TO BE PROVIDED TO THE AUDITOR
A. Finance Department
The Finance Department staff will be available to assist the firm by providing,
information, documentation, and explanations. The preparation of confirmations
will be the responsibility of the City of Colleyville. Also, the City has an Information
Systems Management department and that department will answer any questions
about the computer hardware. Additionally, there is on-line documentation on the
“Munis” software system.
B. Statements and Schedules to be Prepared by the City of Colleyville Staff
All of the following schedules will be available for auditors at the start of final
fieldwork: Trial Balances (All Funds), Debt Service Requirements, Tax Supported
Debt Roll forward, Utility Debt Roll forward, Lead Schedules-Accounts Payable
Lead Schedules-Accrued Liabilities, Lead Schedules-Accounts Receivable,
Detailed Fixed Assets, Detailed Fixed Assets (Enterprise Funds), Ad Valorem tax
receipts and receivables.
The City will provide additional hours of staff time to prepare any other schedule
the auditors may need.
C. Work Area, Telephones, Photocopying, and FAX Machines
The City of Colleyville will provide the auditors with reasonable workspace located
in the Finance Department including, conference table and chairs. The auditors
will also be provided with access to wireless internet, a photocopier, and a fax
machine.
D. Report Preparation
Report preparation, editing, and printing shall be the responsibility of the auditor.
VI. WITHDRAWAL/MODIFICATION OF PROPOSALS
A firm may withdraw a Proposal at any time prior to the final submission deadline
upon presentation of acceptable identification. The firm may thereafter submit a
new or modified Proposal prior to the final submission deadline.
Any interlineations, alterations, erasure or other amendment made before the
submittal deadline, must be signed or initialed by the firm or authorized agent,
guaranteeing authenticity. Proposals cannot be altered, amended or withdrawn by
firm after the submission deadline. Modifications offered in any other manner, oral
or written, will not be considered. A final Proposal cannot be changed or withdrawn
Page 18 of 29 ` Proposer’s Initials _________
after the designated time for receipt, except for modifications/clarifications
requested by the City of Colleyville after the date of receipt or following any oral
presentations.
VII. EVALUATION PROCESS
A. Review of Proposals
The Audit Selection committee will use a point formula during the review process to score
proposals. Each member of the Audit Selection Committee will first independently score
each proposal by each of the criteria described in Section VII B below. The Audit
Selection Committee will then convene to discuss these evaluations and to combine the
individual scores to arrive at a composite technical score for each firm. At this point, firms
with an unacceptably low technical score will be eliminated from further consideration.
Firms with an acceptable score will be invited to make an oral presentation to the full Audit
Committee, and will be assigned scores based upon their presentation. After the oral
presentations are completed, the sealed dollar cost bid will be opened and additional
points will be added to the score based upon the bid price. The maximum score will be
assigned to the firm offering the lowest total all-inclusive maximum price. Appropriate
fractional scores will be assigned to the other proposers. The City of Colleyville reserves
the rights to retain all proposals submitted, and use any idea presented in a proposal in
the future, regardless of whether that proposal is ultimately selected.
B. Evaluation Criteria
Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory
criteria will have their proposals evaluated and scored for both technical qualifications
and price. The following represent the principal selection criteria, which will be considered
during the evaluation process:
1. Mandatory Elements
a. The audit firm is independent and licensed to practice in the State of
Texas
b. The audit firm’s professional personnel have received adequate
continuing professional education within the preceding two years
c. The firm adheres to the instructions in this request for proposals on
preparing and submitting the proposal.
2. Technical Qualifications: Maximum Points - 80
a. Audit Expertise and Experience - 30 points
(1) The firms past experience and performance on
comparable government engagements.
Page 19 of 29 ` Proposer’s Initials _________
(2) The quality of the firm’s professional personnel to be
assigned to the engagement and the quality of the firm's
management support personnel to be available for
technical consultation.
b. Audit Approach - 30 points
(1) Adequacy of proposed staffing plan for various segments
of the engagement
(2) Adequacy of sampling techniques
(3) Adequacy of analytical procedures
(4) Adequacy of review of internal controls
c. Government References – 20 points
3. Oral Presentations: Maximum Points - 10
4. Price: Maximum Points – 10
COST WILL NOT BE THE PRIMARY FACTOR IN THE SELECTION OF
AN AUDIT FIRM
C. Oral Presentations
Firms having an acceptable technical score will be required to make an oral presentation
to the Audit Selection Committee on Tuesday, May 2, 2023. Such presentations will
provide firms with an opportunity to answer any questions the Audit Selection Committee
may have on a firm's Proposal.
D. Final Selection
The City Council will select a firm based upon the recommendation of the Audit
Committee. It is anticipated that a firm will be selected by May 5, 2023 and that the City
Council will approve the contract at the May 16, 2023 Council meeting.
E. Right to Reject Proposals
Submission of a proposal indicates acceptance by the firm of the conditions contained in
this Request for Proposals unless otherwise clearly and specifically noted in the proposal
submitted and confirmed in the contract between the City of Colleyville and the firm
selected. The City of Colleyville reserves the right without prejudice to reject any or all
proposals.
Page 20 of 29 ` Proposer’s Initials _________
F. AWARD OF CONTRACT:
It is understood that the City reserves the right to accept or reject any and all Proposals
and to re-solicit for Proposals, as it shall deem to be in the best interest of the City.
Receipt and consideration of any Proposal shall under no circumstances obligate the City
to accept any Proposal. If an award of the contract is made, it shall be to the responsible
firm whose Proposals is determined to be the best evaluated offer taking into
consideration the relative importance of the evaluation factors set forth in this Request for
Proposals.
VIII. GENERAL TERMS AND CONDITIONS:
Respondents are advised to review this request carefully, and to follow instructions
completely, as failure to make a complete submission as described herein may result in
rejection of the submission.
DISCLOSURE OF INTEREST: Pursuant to Chapter 176 of the Texas Local Government
Code, a person, or agent of a person, who contracts or seeks to contract for the sale or
purchase of property, goods, or services with the City of Colleyville must file a completed
conflict of interest questionnaire which is included in this solicitation or available at
www.ethics.state.tx.us. The conflict of interest questionnaire must be filed with the City
of Colleyville no later than the seventh business day after the person or agent begins
contract discussions or negotiations with the City or submits to the City an application,
response to a request for proposal or bid, correspondence, or writing related to a potential
agreement. An updated conflict of interest questionnaire must be filed in accordance with
Chapter 176 of the Local Government Code. An offense under Chapter 176 is a Class C
misdemeanor.
By doing business or seeking to do business with the City of Colleyville, you acknowledge
that you have been notified of the requirements of Chapter 176 of the Texas Local
Government Code and that you are solely responsible for complying with these
requirements.
Certificate of interested parties: in 2015, the Texas Legislature adopted House Bill 1295,
which added section 2252.908 of the Government Code and applies to all contracts
entered into on or after January 1, 2016. The law states that a governmental entity may
not enter into certain contracts with a business entity unless the business entity submits
a disclosure of interested parties to the governmental entity at the time the business entity
submits the signed contract to the governmental entity. The law applies to all
contracts/purchases of a governmental entity that require action or vote by the governing
body of the entity.
With regards to the City of Colleyville, a vendor that is awarded a contract or purchase
that is greater than $50,000 is required to electronically create a Form 1295 through the
Page 21 of 29 ` Proposer’s Initials _________
Texas Ethics Commission website (https://www.ethics.state.tx.us) and submit a signed
and notarized copy of the form to the City. A contract, including City-issued purchase
order, will not be enforceable or legally binding until the City receives and acknowledges
receipt of the properly completed Form 1295 from the vendor.
Prohibition of Boycott of Israel: House Bill 89, effective September 1, 2017, amended the
Texas Government Code to add Chapter 2270, Prohibition on contracts with companies
boycotting Israel. Effective September 1, 2017, a state agency and a political subdivision
(which includes a city) may not enter a contract with a company for goods or services
unless the contract contains a written verification from the company that (a) it does not
boycott Israel, and (b) will not boycott Israel during the term of the contract.
“Boycott Israel” is defined to mean refusing to deal with, terminating business
activities with, or otherwise taking any action that is intended to penalize,
inflict economic harm on, or limit commercial relations specifically with Israel,
or with a person or entity doing business with Israel or in an Israel-controlled
territory, but does not include an action made for ordinary business purposes.
“Company” is defined to mean a for-profit sole proprietorship, or limited
liability company, including a wholly owned subsidiary, majority-owned
subsidiary, parent company, or affiliate of those entities or business
associations that exists to make a profit.
Senate Bill 252: Senate Bill 252, effective September 1, 2017, prohibits governmental
contracts with a company doing business with Iran, Sudan, or a foreign terrorist
organization. Senate Bill 252 amended the Texas Government Code to add Chapter
2252, Prohibition on contracts with certain companies. This Bill prohibits state agencies
from contracting with or investing in companies that do business with Iran or designated
foreign terrorist organizations.
“Foreign terrorist organization” means an organization designated as a
foreign terrorist organization by the United States Secretary of State as
authorized by 8 U.S.C. Section 1189.
“Government contracts” means a contract awarded by a governmental entity
for general construction, an improvement, a service, or a public works project
or for a purchase of supplies, materials, or equipment. The term includes a
contract to obtain a professional or consulting service subject to Chapter
2254.
The City may request representation and other information sufficient to determine firm’s
ability to meet the minimum standards as indicated herein.
Page 22 of 29 ` Proposer’s Initials _________
Respondents are advised to review all sections of this Request for Proposals carefully,
and to follow instructions completely, as failure to make a complete submission as
described herein may result in rejection of the submission.
All costs associated with developing or submitting a proposal in response to this request,
or to provide oral or written clarification of its content shall be the sole responsibility of the
respondent. The City of Colleyville assumes no responsibility for these costs. This RFP
does not commit the City to pay any costs incurred in preparation or submission of a
response or in anticipation of a contract.
This RFP does not commit the City of Colleyville to enter into a contract. The City reserves
the right to award one, more than one, or no contract(s) in response to this RFP. The
City of Colleyville reserves the right to waive any informalities and irregularities in the
submissions or proposals received. The City also reserves the right to terminate this
RFP, and reissue a subsequent solicitation, and/or remedy technical errors in the RFP
process.
All respondents are prohibited from making any contact with any City personnel, City
Council, or City Manager with regard to the RFP, other than in the manner and to the
person designated herein. The City of Colleyville reserves the right to disqualify any
respondent found to have contacted anyone other than the designee.
Responders should be aware that the RFP and the contents of the successful RFP will
become part of any subsequent contractual document that may arise from this Request.
In cases of discrepancy between the RFP and the responder’s submittals, the RFP will
rule.
Submittals cannot be altered or amended after the closing date. Submittals will be publicly
acknowledged in the City Hall Finance Department located at 100 Main Street, Colleyville,
Texas 76034 at the time and date specified. All interested parties may be present. There
will be no disclosure of contents to competing firms, and all Statements of Proposals will
be kept confidential during the evaluation and negotiation process.
By submitting, firm certifies that it has fully read and understands this Request for
Proposals and has full knowledge of the scope and quality of the services to be furnished
and intends to adhere to the provisions described herein. Failure to do so will be at the
firm’s own risk.
Any submittal which does not contain all of the information requested herein will be
considered incomplete and may be rejected.
Causes for rejection of a submittal may include but shall not be limited to:
The firm’s current violation of any City Ordinance
The firm’s current inability to satisfactorily perform the work or service
Page 23 of 29 ` Proposer’s Initials _________
The firm’s previous failure to properly and timely perform its
obligations under a contract with the City
Firm may be disqualified and rejection of submittals may be recommended for any (but
not limited to) of the following causes:
Failure to use the forms furnished by the City (if any)
Lack of signature by an authorized representative
Failure to properly complete the submittal requirements
Evidence of collusion among firms
Any alterations of the language contained within the RFP.
The City may conduct reference checks as needed to evaluate submittals. The City may
contact those listed, and inclusion of this listing in your submittal is an agreement that the
City may contact the named reference. The City reserves the right to contact other
companies or individuals that can provide information to the City that will assist in the
evaluation of the capability of the firm.
The City of Colleyville operates and is funded on a fiscal year basis; accordingly, the City
reserves the right to terminate, without liability, any contract for which funding is not
available.
The City of Colleyville is exempt from Federal Excise and State Sales Tax; therefore, tax
must not be included in any contract that may be awarded from this Request for
Proposals.
The City reserves the right to negotiate all elements that comprise the successful firm’s
response to ensure that the best possible consideration can be afforded to all concerned.
The firm may not assign its rights or duties under an award without the prior written
consent of the City. Such consent shall not relieve the assignor of liability in the event of
default by its assignee.
Firm will not be allowed to take advantage of any errors or omissions in this Request for
Proposals. Firms shall promptly notify the City of any omission, ambiguity, inconsistency
or error that they may discover upon examination of the documents. The City assumes
no responsibility for any errors or misrepresentations that result from incomplete
Proposals. No plea of ignorance of conditions that exist, or difficulties or conditions
concerning the work to be performed, or execution of the work shall be accepted as an
excuse for any failure or omission on the part of specifications documents governing the
work. The firm awarded the contract shall not be allowed any extra compensation by
reason of any matter or aspect prior to the Proposal.
Page 24 of 29 ` Proposer’s Initials _________
Any ambiguity in the Request as a result of omission, error, lack of clarity or
noncompliance by the firm with specifications, instructions and all conditions shall be
construed in the favor of the City.
Once the submittal deadline has passed, any Proposal shall constitute an irrevocable
statement to provide the services set forth in this Request. Such Proposal shall be
irrevocable until the earlier of the expiration of ninety (90) days from the submission
deadline, or until a contract has been awarded by the City.
When the City has reason to question the firm’s intent to perform, the City may demand
that written assurances of intent to perform be provided. In the event such a demand is
made, and no assurance is given within ten (10) calendar days, the City may treat this
failure as an anticipatory repudiation of the contract.
The final contract document will be prepared by the City on the City’s form and will be
governed and construed according to the laws of the State of Texas. The contract is
performable in Tarrant County, Texas. Venue shall lie exclusively in Tarrant County,
Texas. All services shall be provided in accordance with applicable requirements and
ordinances.
Firms shall not offer or accept gifts or anything of value nor enter into any business
arrangement with any employee, official, or agent of the City. The City may, by written
notice to the successful firm, cancel this contract without liability to the firm if it is
determined by the City that gratuities or bribes of entertainment, gifts, or otherwise, were
offered or given by the firm, its agents, or its representatives to any City officer, employee,
or elected representative with respect to the performance of this contract. In addition, the
successful firm shall be subject to penalties as stated in Title 8 of the Texas Penal Code.
The City of Colleyville requires the awarded firm to carry the minimum insurance as
required by state law or as otherwise specified in City’s contract document. Certificates
of Insurance must be provided to the City.
Appendix A
PROPOSER GUARANTEES
I. The proposer certifies it can and will provide and make available, at a minimum, all
services set forth in Section III, Nature of Services Required
Page 25 of 29 ` Proposer’s Initials _________
Signature of Official:
Name (typed):
Title:
Firm:
Date:
Page 26 of 29 ` Proposer’s Initials _________
Appendix B
PROPOSER WARRANTIES
A. Proposer warrants that it is willing and able to comply with State of Texas laws with
respect to foreign (non-state of Texas) corporations.
B. Proposer Warrants that is willing and able to obtain an errors and omissions insurance
policy providing a prudent amount of coverage for the willful or negligent acts, or
omissions of any officers, employees or agents thereof.
C. Proposer warrants that it will not delegate or subcontract its responsibilities under an
agreement without the express prior written permission of the City of Colleyville.
D. Proposer warrants that all information provided in connection with this proposal is true
and accurate.
Signature of Official:
Name (typed):
Title:
Firm:
Date:
Page 27 of 29 ` Proposer’s Initials _________
Appendix C - Part 1
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE 2023
FINANCIAL STATEMENTS AND ANNUAL FINANCIAL REPORT PREPARATION AND
PRINTING
Standard Hourly
Hours Rates Total
Partner(s) : $ $_______
Manager(s) : $ $_______
Supervisory Staff : $ $_______
Staff : $ $_______
Other (Specify) : $ $_______
Subtotal $
Out of pocket expenses $
Annual Financial Report Preparation (if not included above) $
Typing, Printing, Binding and Delivery of Twenty (20) Copies of the
Annual Financial Report $
Total all-inclusive maximum price for 2023 audit and Annual Financial
Report preparation $
Note: The rate quoted should not be presented as a general percentage of the standard hourly
rate or as a gross deduction from the total all-inclusive maximum price.
Projected annual increase for FY 2024-2027 (Express as a % or Type: e.g. Increase will be tied
to DFW annual CPI increase) : ___________________________________________
Signature of Official:
Name (typed):
Title:
Page 28 of 29 ` Proposer’s Initials _________
Firm:
Date:
Appendix C - Part 2
SCHEDULE OF PROFESSIONAL FEES FOR SERVICES DESCRIBED IN THE REQUEST FOR
PROPOSALS SECTION III E –
REPORTS FOR BOND SALE
Total Price $
SINGLE AUDIT
Total Price $
Signature of Official:
Name (typed):
Title:
Firm:
Date:
Page 29 of 29 ` Proposer’s Initials _________
Appendix D
CITY FUNDS
FUND NAME DESCRIPTION FUND TYPE
001 General Fund General government purposes; M&O portion of tax rate General Fund
036 Strategic Initiatives Programs/projects linked to the strategic plan General Fund
004 Debt Service From debt (I&S) portion of the tax rate for debt payments Debt Service
003 Capital Projects Capital projects; some funding sources have restricted uses Capital Projects
012 Park Land Dedication Acquisition of land for new park sites Capital Projects
032 VERF Fund Committed to server, equipment, and vehicle replacements Capital Projects
034 Colleyville Tomorrow Capital purchases/at Council discretion; Gas leases on City property Capital Projects
035 Parks Tomorrow From gas lease on City park property for parks capital projects Capital Projects
005 Voluntary Park Fund New or existing park capital costs (no M&O); Donations through utility bills Special Revenue
007 Donations Fund Donations; Only restricted if specified by donor Special Revenue
011 Voluntary Library Donations through utility bills for Library activities Special Revenue
015
Police Asset
Forfeiture Seizures of property; restricted by law Fiduciary
016 Grants Projects supported by Grants Special Revenue
018 Tree Preservation From tree mitigation fees used for tree replanting on city-owned property Special Revenue
019 Library Donation Donations for Library needs or as specified by donor Special Revenue
020 Recreational Event Event revenue and special events expenses Special Revenue
023 Leose Police training; State of Texas Special Revenue
027
Crime District
(CCCPD) From 0.5 cent sales tax used for Public safety and crime control activities
Component
Unit
029 Court Technology From municipal court technology fee for court technology Special Revenue
030 Court Security From municipal court building security fee for security-related expenses Special Revenue
033 Public Art Public Art Special Revenue
037 Juvenile Case Mgr From juvenile case manager fee Special Revenue
038 Hotel Fund From Hotel tax Special Revenue
002
Utility Operating
Fund From water and wastewater base and volumetric rates Enterprise
039
Utility Capital
Projects From transfers for Utility capital projects Capital Projects
017 Drainage Fee Fund From monthly drainage fee for drainage operations and capital projects Enterprise
006
Sesquicentennial
Fund Established for 150th anniversary of Texas’ independence from Mexico Special Revenue
008 Employee Activity From employee Contributions for employee activities Fiduciary
026 TIF Fund From incremental assessed value revenue in the TIF District
Component
Unit
024 CEDC From 0.5% cent sales tax for Library, Parks, and Colleyville Center
Component
Unit
City of Colleyville Page 1
CITY OF COLLEYVILLE
AUDIT COMMITTEE BRIEFING
Agenda Number 3b Agenda Date 5/2/2023 Number
Type Presentation and Discussion
Department Finance
Title
Interview of audit firms submitting proposals in response to the City’s request for
proposals for an external audit firm
Explanation
The Audit Committee will interview the audit firms for the City's annual external audit for
Fiscal Year ended September 30, 2023.
Each firm will be allotted ten minutes to give a short presentation and answer the
Committee's questions.
The audit firms that will be presenting before the Committee are:
1. Forvis, LLP
2. Weaver and Tidwell, LLP
Each of the proposals have been provided to the Committee for review prior to the
meeting.
Attachments
City of Colleyville Page 1
CITY OF COLLEYVILLE
AUDIT COMMITTEE BRIEFING
Agenda Number 3c Agenda Date 5/2/2023 Number
Type Presentation and Discussion
Department Finance
Title
Review the sealed cost portion of the audit proposals and consider a recommendation to
City Council for the selection of an audit firm
Explanation
Following the prospective audit companies' presentations, the Audit Committee will
review the sealed bids.
Staff will present their recommendation to the committee in response to the request for
proposals for the City's annual external audit for Fiscal Year ended September 30, 2023
for the purpose of recommending an audit firm to the City Council on May 16, 2023.
Attachments
City of Colleyville Page 1
CITY OF COLLEYVILLE
AUDIT COMMITTEE BRIEFING
Agenda Number Agenda Date 5/2/2023 Number 4a
Type Report
Department City Manager
Title
Quarterly Investment Report for the quarter ended March 31, 2023
Explanation
Investment Summary for period ending March 31, 2023:
Cash and Cash Equivalents (local government investment pools) totaled $51,488,647 at
the end of March 2023. Colleyville’s complete portfolio was valued at $73,985,646, and
was allocated as follows:
Instrument Current as of
3/31/2023
Last Quarter as of
12/31/2022
Cash $ 14,474,772 $ 27,079,390
LOGIC (CP Permissible) $ 2,605,037 $ 491,080
Other Governmental Pools $ 34,408,838 $ 21,956,970
CD’s $ 8,531,273 $ 8,260,268
CDARS $ - $ -
Agencies $ 13,965,725 $ 10,965,725
Total Cash & Investments $ 73,985,646 $ 68,753,432
Instrument Yield this quarter
LOGIC (CP Permissible) 4.70 %
Other Governmental Pools 4.4239 %
CD’s 2.49 %
CDARS 0.00 %
Agencies 3.77 %
Total Consolidated Yield 4.13 %
Benchmark Yield: 4.74%
Interest earnings for the quarter were $503,530 compared to $344,978 in the previous
quarter. This is reflective of a more optimistic market, anticipated Federal Reserve
action, and a few maturities coming due in the last quarter. Staff will continue to
examine cash-flow needs and place our resources in instruments with an emphasis on
keeping these funds safe while earning as strong a yield as possible.
City of Colleyville Page 2
Audit Committee Agenda Briefing
1.Presentation - March 2023 Investment Report
2.Investment Report - March 2023
Attachments
Quarterly Investment Report
2nd Q, 2023
May 2, 2023
As required by the Public Funds Investment Act, §2256.023
Cash Position Overview
20%
50%
11%
19%
Cash/Sweep Pools CD/CDARS Agencies
13-Wk T Consolidated
Return
Pools CD's Agencies
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
RETURN COMPARISON
12/31/2022 3/31/2023
Return Summary
1 2
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
9/30/2022:
3.52%
12/31/2022:
4.13%
Rate of Return
4/30/20154/30/20164/30/20174/30/20184/30/20194/30/20204/30/20214/30/2022 -
1.00
2.00
3.00
4.00
5.00
6.00
Influence of Federal Funds Rate on Fixed
Income Market
13-Wk Coupon Fed Funds Rate Avg Pools
Return Summary
6/1/20209/1/202012/1/20203/1/20216/1/20219/1/202112/1/20213/1/20226/1/20229/1/202212/1/20223/1/20230.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
$ -
$ 100,000
$ 200,000
$ 300,000
$ 400,000
$ 500,000
$ 600,000
Historical Return
Return Rate Interest Earned
Return Summary
5-20177-20179-201711-20171-20183-20185-20187-20189-201811-20181-20193-20195-20197-20199-201911-20191-20203-20205-20207-20209-202011-20201-20213-20215-20217-20219-202111-20211-20223-20225-20227-20229-202211-20221-20233-20230.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
POOLS VS. BENCHMARK VS. INVESTMENT DECISIONS
Investments Pools 13-Wk
Mark-to-Market – What is our portfolio worth?
Shows portfolio value vs. initial investment
However…
•We hold our investments until maturity
(“buy and hold” strategy)
•Gains and losses shown are unrealized
Valuation
Period
Value at
Purchase
Revised
Value
Total Gain
(loss) on
Purchase
Price
9/30/2022 $ 20,226,953 $ 19,943,146 ($ 283,807)
12/31/2022 $ 19,225,992 $ 18,953,072 ($ 272,920)
3/31/2023 $ 22,496,998 $ 22,301,979 ($195,019)9/1/201912/1/20193/1/20206/1/20209/1/202012/1/20203/1/20216/1/20219/1/202112/1/20213/1/20226/1/20229/1/202212/1/20223/1/20230.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
$ -
$ 50,000
$ 100,000
$ 150,000
$ (50,000)
$ (100,000)
$ (150,000)
$ (200,000)
$ (250,000)
$ (300,000)
$ (350,000)
MARK TO MARKET VS. MARKET INCREASES
M2M 13Wk
Questions/Comments
3/31/2023
City of Colleyville, TX
Quarterly Investment Report
Quarterly Investment Report City of Colleyville, TX 3/31/2023
Weighted
12/31/2022 3/1/2023 Change Maturity
Cash 27,079,390$ 14,474,772$ (12,604,618)$ Liquid
Sweep Account -$ -$ -$ Liquid
LOGIC (CP Permiss.)491,080$ 2,605,037$ 2,113,958$ Liquid
Other Gov't Pools 21,956,970$ 34,408,838$ 12,451,868$ Liquid
Subtotal 49,527,440$ 51,488,647$ 1,961,208$
CD's 8,260,268$ 8,531,273$ 271,006$ 221 days
CDARS -$ -$ -$ 0 days
Agencies 10,965,725$ 13,965,725$ 3,000,000$ 326 days
Subtotal 19,225,992$ 22,496,998$ 3,271,006$ 286 days
Total Resources 68,753,432$ 73,985,646$ 5,232,213$
Investments on the move…
Criteria
Met?
Policy Max 12/31/2022 3/1/2023
U.S. Treasuries 100%0%0%
U.S. Agencies 75%16%19%
CD's 75%12%12%
Local Gov't Pools 75%33%50%
CDARs 75%0%0%
Tri-Pty Repurchase 75%0%0%
Cash/Sweep N/A 39%20%
Where is Colleyville's cash?
Diversity Snapshot vs. Policy Requirements
0%0%10%SEC Registered, No-
Load Mutual Funds
The second quarter of FY23 showed a predictable increase in total resources from December, led by
property tax receipts. More importantly, you can note a shift from actual cash resources to our local
government pools along with investment purchases in CD’s and agencies netting $3.271m.In total, the
City had almost $500,000 in CD’s mature with a weighted average maturity of 1 year and a low return of
0.15%. The influx of property tax dollars enabled staff to invest $3.75m total in three brokered CD’s and
three lucrative Federal Home Loan Bank notes for an average annual return of 5.09% and a weighted
average maturity of a little over 1 year. With $1 million maturing over the next three months and a total
of $9.8 million maturing in calendar 2023, the City will have ample opportunity to reach back out to the
market. These moves should pull the City’s consolidated return back on par with our benchmark.
Cash/
Equivalents
Bonds/CDs/Ag
encies
2
Quarterly Investment Report City of Colleyville, TX 3/31/2023
Benchmark =13-Week Treasury
The City's total consolidated return was 4.13%as of March 31, 2023, representing a significant increase
from a consolidated return of 3.52% last quarter. With the Federal Reserve’s 430 basis point increase in
its interbank borrowing rate this last year, this will be the fourth quarter our return lags behind the 13-
week treasury rate,as pool rates are still catching up and the City is allowing it’s older, lower interest-
bearing investments to mature. This tends to be a characteristic of a starkly rising rate market for
portfolios that hold their investments to maturity.As of the date of this report,it is not uncommon to
see shorter-term securities (1.5 - 3 years) pushing beyond 500 basis points.As older and weaker
investments mature, staff will continue to take advantage of higher market rates. Most recently, staff has
been able to capitalize on $3.75 million in investments at a total consolidated return of over 5%, with an
average weighted maturity of a little over a year. Funds dedicated to capital improvement projects will
need to remain readily available while excess operating cash can be invested in shorter-term instruments
with favorably returns.
Before the recent downturn Colleyville's investment returns had been climbing steadily since 2016,
primary due to to more active investment practices. Although we are coming out of a down-cycle in
terms of returns, until the last year we've still been able to stay ahead of our 13-week treasury
benchmark.We will continue to see the City's returns increase in subsequent reports. Most importantly,
Colleyville's funds are safe. Our highest value is placed on maintaining a low risk in order to ensure the
safety and liquidity of the funds entrusted to us.
How do our returns compare?
4.74%
4.13%
4.64%4.44%
2.49%
3.77%
-0.75%
0.25%
1.25%
2.25%
3.25%
4.25%
5.25%
13-Wk T Consolidated
Return
Bank Pools CD's Agencies
Second Quarter, FY23
$-
$200,000
$400,000
$600,000
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
Historical Return
Return Rate Interest Earned
3
Quarterly Investment Report City of Colleyville, TX 3/31/2023
12/31/2022 3/31/2022
Thru Thru
3/31/2023 3/31/2023
What have we earned the past three months? For the past year?
As the graph above shows, the City's portfolio makeup has changed substantially over the years. For
one, our change in depository banks led staff to shy away from the sweep account instrument that had
been heavily used with Wells Fargo.As a result, cash has been moved from our bank and into other
instruments more frequently. Certificates of Deposit were particularly attractive during the pandemic
years, with agencies slowly resurging within the last nine months. While money stored in government
pools isn’t earning as high as our treasury benchmark as of late,it does have the benefit of a decent
return market while also being considered "liquid",as the City can withdraw its funds within 24 hours in
most cases. Regardless, all recent investments that have been placed recentl have well outpaced our 13-
week treasury benchmark and mature within 1-2 years.
$503,530; 4.13%$292,613; 2.57%
Current Total Quarterly Average
Compared to the average quarterly return for the past 12 months, the most recent quarter is showing a
significant increase in the rate of return, led by recent maturities andreinvestments placed in the past few
months.As noted, fixed-income rates have climbed amidst the actions from the Federal Reserve and
appear to be sitting around the 500-basis point range pretty consistently.As noted previously, staff has
been able to capitalize on these higher yields, although the City's liquidity needs to remain relatively
high at this time. Federal agency debt has been particularly attractive as of late.As always,we will need
to balance investments with our robust 5-year capital improvement plan.Staff will always monitor the
market and manage Colleyville's portfolio with emphasis on diversity and cash-flow needs.
How has our portfolio changed over time?
24%16%16%20%
58%
61%60%50%
17%
16%
12%
2%2%5%8%
19%
2021 2022 2023 2024
PORTFOLIO COMPOSITION
Bank Pools CD's CDARS Agencies
4
Quarterly Investment Report City of Colleyville, TX 3/31/2023
For any questions or comments on this report, please contact Also included:
Kyle Lester, CGFO Maturities/Purchases
City of Colleyville, TX Investment Listing
Finance Director 817-503-1014 Mark-to-Market
klester@colleyville.com
Signed:
What influences our rate of return?
Per State law, Colleyville is only permitted to invest in certain fixed income securities, whos
performance ties closely with the Federal Funds rate.As the chart above shows, the rates of our 13-
week treasury benchmark as well as our pools tend to move in lock-step with the Federal Reserve's rate
actions. This rate was cut five times since the beginning of the pandemic but inflation and recessionary
fears have prompted the Federal Reserve to drastically increase it to between 4.75% and 5%. With
inflationary pressures continuing and a potential (mild) recession coming later in 2023, further rate
hikes are decreasing in probability,at least at their previous levels. Regardless,it is possible for the
interbank borrowing rate to reach a height not seen since mid-2007.
This investment report is in compliance with the Public Funds Investment Act as well as the City of
Colleyville's investment policy and procedures.
-
1.00
2.00
3.00
4.00
5.00
6.00
Influence of Federal Funds Rate on Fixed Income Market
13-Wk Coupon Fed Funds Rate Avg Pools
5
Quarterly Investment Report City of Colleyville, TX 3/31/2023
What has matured in the last 12 months?
Length
Brokered CD (FDIC #57565)249,000$ 3/6/2020 3/11/2022 2.01 1.00%
Brokered CD (FDIC #34742)249,000$ 2/28/2020 3/21/2022 2.06 1.40%
Brokered CD (FDIC #33555)248,000$ 3/6/2020 3/21/2022 2.04 1.00%
Brokered CD (FDIC #19581)250,000$ 3/6/2020 3/21/2022 2.04 0.90%
Brokered CD (FDIC #35546)249,000$ 2/28/2020 3/28/2022 2.08 1.55%
Brokered CD (FDIC #35546)249,000$ 2/28/2020 3/28/2022 2.08 1.55%
Brokered CD (FDIC #58978)248,000$ 3/6/2020 3/28/2022 2.06 1.05%
Brokered CD (FDIC #32992)244,201$ 9/30/2020 4/4/2022 1.51 0.19%
Brokered CD (FDIC #26876)249,000$ 4/8/2021 4/7/2022 1.00 0.10%
Brokered CD (FDIC #845)249,187$ 11/20/2020 6/27/2022 1.60 0.20%
Brokered CD (NCUA #60269)249,000$ 8/10/2020 8/18/2022 2.02 0.30%
Brokered CD (FDIC #33686)249,000$ 8/26/2020 8/26/2022 2.00 0.25%
Brokered CD (FDIC #17739)240,204$ 9/30/2020 8/29/2022 1.91 0.20%
Brokered CD (FDIC #33954)256,586$ 12/22/2020 10/12/2022 1.81 0.20%
Brokered CD (FDIC #4297)256,481$ 12/22/2020 10/12/2022 1.81 0.20%
Brokered CD (NCUA #17587)247,000$ 10/29/2020 10/28/2022 2.00 0.25%
Brokered CD (FDIC #16022)247,000$ 11/9/2020 11/9/2022 2.00 0.20%
Brokered CD (FDIC #34953)249,000$ 11/16/2020 11/16/2022 2.00 0.20%
Brokered CD (FDIC #35141)249,000$ 11/20/2020 11/21/2022 2.00 0.20%
Brokered CD (FDIC #8120)247,000$ 12/23/2020 12/23/2022 2.00 0.20%
Brokered CD (NCUA #619)246,000$ 2/21/2021 2/13/2023 1.98 0.15%
Brokered CD (FDIC #58979 246,000$ 2/19/2021 2/21/2023 2.01 0.15%
Total Matured 5,466,658$ 0.52%
APPENDIX
Purchase Date
Maturity
DatePurch Price
Yield to
MaturityInvestment
6
Quarterly Investment Report City of Colleyville, TX 3/31/2023
What have we purchased within the last 12 months?
Brokered CD (FDIC #27471)250,000$ 3/2/2022 3/4/2024 1.60%8,033$
Brokered CD (FDIC #32574)250,000$ 3/9/2022 3/6/2024 1.50%7,479$
Brokered CD (FDIC #628)249,000$ 3/31/2022 3/31/2023 1.00%2,490$
FHLB Note (3130ARLC3)1,000,000$ 4/25/2022 4/25/2024 2.63%52,572$
FHLB Note (3130ARP54)450,000$ 4/29/2022 4/29/2024 2.70%24,333$
FHLB Note (3130ARVT5)1,000,000$ 5/17/2022 5/17/2024 3.00%60,082$
FHLB Note (3130ARV65)515,000$ 5/20/2022 5/17/2024 3.00%30,815$
Brokered CD (FDIC #68722)250,000$ 6/29/2022 6/29/2023 2.95%7,375$
Brokered CD (FDIC #66364)250,000$ 7/13/2022 7/13/2023 3.00%7,500$
FHLB Note (3130ASHY8)500,000$ 7/14/2022 7/14/2023 3.25%16,250$
FHLB Note (3130ATE37)1,500,000$ 9/29/2022 9/29/2023 4.15%62,250$
FHLB Note (3130ATKC0)1,000,000$ 10/3/2022 1/26/2024 4.63%60,822$
FHLB Note (3130ATK63)1,000,000$ 10/3/2022 7/25/2024 4.88%88,284$
Brokered CD (FDIC #32992)249,000$ 10/14/2022 10/14/2024 4.40%21,942$
Brokered CD (FDIC #29546)249,000$ 10/21/2022 10/21/2024 4.40%21,942$
FFCB Note (3133ENV98)500,000$ 11/4/2022 7/26/2023 4.67%16,889$
Brokered CD (FDIC #57512)250,000$ 11/14/2022 5/15/2023 4.40%5,485$
FHLMC Note (3134GX7F5)500,000$ 11/28/2022 5/23/2024 5.15%38,237$
Brokered CD (NCUA #4584)250,000$ 12/16/2022 12/18/2023 5.10%12,820$
Brokered CD (FDIC #61800)248,000$ 12/19/2022 10/19/2023 4.85%10,018$
Brokered CD (NCUA #1040)250,000$ 12/22/2022 12/23/2024 5.20%26,071$
FNMA Note (3135GADK4)1,000,600$ 12/28/2022 12/27/2023 5.00%49,893$
Brokered CD (NCUA #857)250,000$ 2/8/2023 2/8/2024 5.00%12,500$
Brokered CD (FDIC #34395)250,000$ 2/10/2023 8/10/2023 4.70%5,827$
Brokered CD (FDIC #33849)250,000$ 2/10/2023 8/10/2023 4.70%5,827$
FHLB Note (3130AURL0)1,000,000$ 2/13/2023 2/13/2024 4.80%48,000$
FHLB Note (3130AUZ23 1,000,000$ 3/1/2023 3/1/2024 5.25%52,644$
FHLB Note (3130AV3D2)1,000,000$ 3/6/2023 9/6/2024 5.45%82,123$
Total Purchased 15,460,600$ 4.16%838,503$
Weighted Average Maturity 496 days
APPENDIX
Yield to
MaturityInvestment Total ReturnPurch Price
Purchase
Date
Maturity
Date
7
Quarterly Investment Report City of Colleyville, TX 3/31/2023
Full Investment Listing
Brokered CD (FDIC #19008)249,000$ 3/30/2021 3/30/2023 0.200%996$
Brokered CD (FDIC #57742)249,000$ 3/30/2021 3/30/2023 0.200%996$
Brokered CD (FDIC #57873)249,000$ 3/31/2021 3/31/2023 0.150%747$
Brokered CD (#12858)248,000$ 6/29/2021 6/29/2023 0.15%744$
Brokered CD (#33539)249,000$ 6/30/2021 6/30/2023 0.25%1,245$
Brokered CD (FDIC #33124)250,000$ 7/28/2021 7/28/2023 0.25%1,250$
Spirit of Texas Jumbo CD 1,528,868$ 9/9/2022 9/9/2023 3.45%52,746$
Brokered CD (NCUA #227)249,000$ 9/29/2021 3/29/2024 0.40%2,489$
Brokered CD (FDIC #34404)249,000$ 9/29/2021 9/29/2023 0.30%1,494$
FHLB Note (3130AQ3X9)2,000,125$ 12/22/2021 12/22/2023 0.75%30,002$
Frost Bank Jumbo CD 1,502,400$ 2/25/2022 2/25/2024 1.510%45,372$
Brokered CD (FDIC #27471)250,000$ 3/2/2022 3/4/2024 1.60%8,033$
Brokered CD (FDIC #32574)250,000$ 3/9/2022 3/6/2024 1.50%7,479$
Brokered CD (FDIC #628)249,000$ 3/31/2022 3/31/2023 1.00%2,490$
FHLB Note (3130ARLC3)1,000,000$ 4/25/2022 4/25/2024 2.63%52,572$
FHLB Note (3130ARP54)450,000$ 4/29/2022 4/29/2024 2.70%24,333$
FHLB Note (3130ARVT5)1,000,000$ 5/17/2022 5/17/2024 3.00%60,082$
FHLB Note (3130ARV65)515,000$ 5/20/2022 5/17/2024 3.00%30,815$
Brokered CD (FDIC #68722)250,000$ 6/29/2022 6/29/2023 2.95%7,375$
Brokered CD (FDIC #66364)250,000$ 7/13/2022 7/13/2023 3.00%7,500$
FHLB Note (3130ASHY8)500,000$ 7/14/2022 7/14/2023 3.25%16,250$
FHLB Note (3130ATE37)1,500,000$ 9/29/2022 9/29/2023 4.15%62,250$
FHLB Note (3130ATKC0)1,000,000$ 10/3/2022 1/26/2024 4.63%60,822$
FHLB Note (3130ATK63)1,000,000$ 10/3/2022 7/25/2024 4.88%88,284$
Brokered CD (FDIC #32992)249,000$ 10/14/2022 10/14/2024 4.40%21,942$
Brokered CD (FDIC #29546)249,000$ 10/21/2022 10/21/2024 4.40%21,942$
FFCB Note (3133ENV98)500,000$ 11/4/2022 7/26/2023 4.67%16,889$
Brokered CD (FDIC #57512)250,000$ 11/14/2022 5/15/2023 4.40%5,485$
FHLMC Note (3134GX7F5)500,000$ 11/28/2022 5/23/2024 5.15%38,237$
Brokered CD (NCUA #4584)250,000$ 12/16/2022 12/18/2023 5.10%12,820$
Brokered CD (FDIC #61800)248,000$ 12/19/2022 10/19/2023 4.85%10,018$
Brokered CD (NCUA #1040)250,000$ 12/22/2022 12/23/2024 5.20%26,071$
FNMA Note (3135GADK4)1,000,600$ 12/28/2022 12/27/2023 5.00%49,893$
Brokered CD (NCUA #857)250,000$ 2/8/2023 2/8/2024 5.00%12,500$
Brokered CD (FDIC #34395)250,000$ 2/10/2023 8/10/2023 4.70%5,827$
Brokered CD (FDIC #33849)250,000$ 2/10/2023 8/10/2023 4.70%5,827$
FHLB Note (3130AURL0)1,000,000$ 2/13/2023 2/13/2024 4.80%48,000$
FHLB Note (3130AUZ23 1,000,000$ 3/1/2023 3/1/2024 5.25%52,644$
FHLB Note (3130AV3D2)1,000,000$ 3/6/2023 9/6/2024 5.45%82,123$
Total Return
Purchase
DateInvestmentPurch Price
Maturity
Date
Yield to
Maturity
APPENDIX
8
Quarterly Investment Report City of Colleyville, TX 3/31/2023
Full Investment Listing (Continued)
Total 22,483,992$ 2.54%976,584$
Weighted Average Maturity 286 days
APPENDIX
Investment Par Amount
Purchase
Date
Maturity
Date
Yield to
Maturity Total Return
9
Quarterly Investment Report City of Colleyville, TX 3/31/2023
Mark-to-Market
12/31/2022 3/31/2023
Market Value Market Value
Brokered CD (FDIC #19008)249,000$ 246,595$ 248,151$ (849)$
Brokered CD (FDIC #57742)249,000$ 246,612$ 248,206$ (794)$
Brokered CD (FDIC #57873)249,000$ 246,530$ 248,114$ (886)$
Brokered CD (#12858)248,000$ 242,968$ 245,012$ (2,988)$
Brokered CD (#33539)249,000$ 244,022$ 246,049$ (2,951)$
Brokered CD (FDIC #33124)250,000$ 242,919$ 246,113$ (3,887)$
Spirit of Texas Jumbo CD 1,541,873$ 1,541,873$ 1,541,873$ -$
Brokered CD (NCUA #227)249,000$ 236,241$ 237,621$ (11,379)$
Brokered CD (FDIC #34404)249,000$ 241,191$ 243,193$ (5,807)$
FHLB Note (3130AQ3X9)2,000,125$ 1,911,160$ 1,940,991$ (59,134)$
Frost Bank Jumbo CD 1,502,400$ 1,502,400$ 1,502,400$ -$
Brokered CD (FDIC #27471)250,000$ 240,212$ 242,050$ (7,950)$
Brokered CD (FDIC #32574)250,000$ 239,822$ 241,733$ (8,267)$
Brokered CD (FDIC #628)249,000$ 247,060$ 248,290$ (710)$
FHLB Note (3130ARLC3)1,000,000$ 968,310$ 977,390$ (22,610)$
FHLB Note (3130ARP54)450,000$ 436,109$ 440,091$ (9,909)$
FHLB Note (3130ARVT5)1,000,000$ 972,520$ 980,680$ (19,320)$
FHLB Note (3130ARV65)515,000$ 501,960$ 504,937$ (10,063)$
Brokered CD (FDIC #68722)250,000$ 248,368$ 248,725$ (1,275)$
Brokered CD (FDIC #66364)250,000$ 248,250$ 248,563$ (1,438)$
FHLB Note (3130ASHY8)500,000$ 494,401$ 497,339$ (2,661)$
FHLB Note (3130ATE37)1,500,000$ 1,495,725$ 1,492,605$ (7,395)$
FHLB Note (3130ATKC0)1,000,000$ 993,760$ 995,780$ (4,220)$
FHLB Note (3130ATK63)1,000,000$ 993,750$ 996,100$ (3,900)$
Brokered CD (FDIC #32992)249,000$ 248,116$ 246,714$ (2,286)$
Brokered CD (FDIC #29546)249,000$ 248,116$ 246,702$ (2,298)$
FFCB Note (3133ENV98)500,000$ 499,505$ 499,190$ (810)$
Brokered CD (FDIC #57512)250,000$ 249,925$ 249,810$ (190)$
FHLMC Note (3134GX7F5)500,000$ 499,070$ 498,870$ (1,130)$
Brokered CD (NCUA #4584)250,000$ 250,000$ 249,933$ (68)$
Brokered CD (FDIC #61800)248,000$ 248,546$ 247,720$ (280)$
Brokered CD (NCUA #1040)250,000$ 250,000$ 250,475$ 475$
FNMA Note (3135GADK4)1,000,600$ 1,000,600$ 998,061$ (2,539)$
Brokered CD (NCUA #857)250,000$ N/A 249,728$ (273)$
CDs (FDIC #s 34395, 33849)500,000$ N/A 499,351$ (649)$
FHLB Note (3130AURL0)1,000,000$ N/A 1,000,790$ 790$
FHLB Note (3130AUZ23 1,000,000$ N/A 1,000,470$ 470$
FHLB Note (3130AV3D2)1,000,000$ N/A 1,002,160$ 2,160$
Total 22,496,998$ 18,476,637$ 22,301,979$ (195,019)$
APPENDIX
Unrealized
Gain/(Loss) since
PurchaseInvestmentInitial Value
10
Quarterly Investment Report City of Colleyville, TX 3/31/2023
Note about mark-to-market: This analysis takes a snapshot look at each of the securities Colleyville
holds and values them based on what the market would pay for them today.An unrealized gain in
market value would indicate the security's value has gone up since the last mark-to-market, and an
unrealized loss would indicate the value has gone down. However, the City of Colleyville's strategy
is to buy securities and hold them to maturity to receive the agreed-upon interest payments (known
as "buy and hold"). Therefore, any change in market value will not be realized by the City. The
primary purpose of this analysis,as required by the Public Funds Investment Act,is to demonstrate
the current market value of the City's portfolio should we need to liquidate it in the case of an
emergency. This scenario is extremely unlikely, given the prudence Colleyville's leaders have
shown in their financial decisions.It is important to remember this when looking at our quarterly
mark-to-market analysis.
Predictably, the fixed income market's recent turn upward would lead most of the City's securities,
purchased at lower yields,to be uncompetitive and therefore not particularly marketable as
secondary securities. This means the City would likely realize a loss in the event any security needs
to be liquidated. However, as stated above, this is not a likely scenario.
APPENDIX
11
City of Colleyville Page 1
CITY OF COLLEYVILLE
AUDIT COMMITTEE BRIEFING
Agenda Number Agenda Date 5/2/2023 Number 4b
Type Presentation and Discussion
Department Finance
Title
Update on future discussion items and initiatives
Explanation
Staff will provide an update on anticipated future discussion items and initiatives that
are planned for later this year, which may be brought to the Audit Committee for
discussion.
Attachments