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2022-03-28 - Agendas - FinalFayetteville Advertising and Promotion Commission March 28, 2022 Location: Fayetteville Town Center, 15 W. Mountain Street Commissioners: Todd Martin, Chair, Tourism & Hospitality Representative Katherine Kinney, Tourism & Hospitality Representative Chrissy Sanderson, Tourism & Hospitality Representative Elvis Moya, Tourism & Hospitality Representative Andrew Prysby, Commissioner at -large Sarah Bunch, City Council Representative Mark Kinion, City Council Representative Staff: Molly Rawn, CEO; Jennifer Walker, Vice President of Finance, Hazel Hernandez, Vice President of Marketing and Communications Agenda I. Call to order at 2:00 p.m. II. Old Business A. Review and approval of February 2022 minutes. III. New Business A. CEO Report. An executive overview of the previous month activity, issues and opportunities facing the organization. B. Vote. A vote to recommend an eligible applicant to fill the open tourism and hospitality representative commission seat. This recommendation will go to the city council for approval. C. Financial Report. Jennifer Walker, Vice President of Finance D. Vote. Engagement letter for 2021 audit. Staff is recommending signing and engagement letter with BKD for the 2021 audit and filing the Clinton House Museum's 990 for a budgetary impact of $24,850. Memo attached. E. Presentation from Steve Smith, President of the Clinton House Museum Board of Directors. F. Marketing Report. Hazel Hernandez, Vice President of Marketing and Communication G. Additions to the agenda may be added upon request from a majority of the commissioners. IV. Adjourn Fayetteville Advertising and Promotion Commission Minutes from February 28, 2022 Meeting Fayetteville City Hall Commissioners Katherine Kinney, Chair, Tourism & Hospitality Representative Present: Todd Martin, Tourism & Hospitality Representative Chrissy Sanderson, Tourism & Hospitality Representative Elvis Moya, Tourism & Hospitality Representative Sarah Bunch, City Council Representative Mark Kinion, City Council Representative Commissioners Andrew Prysby Absent Molly Rawn, CEO; Jennifer Walker, Vice President of Staff: Finance; Hazel Hernandez, Vice President of Marketing and Communications Chair Kinney called the meeting to order at 2:00 pm. Old Business A. Commissioner Martin motioned to approve the December 2021 minutes with Commissioner Bunch seconding. The minutes were unanimously approved. III. New Business A. In accordance with the by-laws, a chairperson much be voted on by the active commissioners at the first meeting of every year. Chair Kinney expressed her appreciation at being able to serve the last two years and said she would be stepping away from the chair position this term. Commissioner Martin volunteered to serve and Commissioner Kinion made a motion for Commissioner Martin to serve as chair after clarifying that there were not other nominations to consider. It was seconded by Commissioner Sanderson and was approved unanimously. B. CEO Update Molly Rawn began her report by expressing appreciation for Chair Kinney's involvement as Chair with a lot of behind -the -scenes work done during the pandemic and throughout her term. Rawn reported that we have received 4 applicants for the open commission position that Commissioner Moya is currently serving, including one from Commissioner Moya himself. Rawn stated that after confirming eligibility of the applicants, we can do the interview process however the commission would like. She also gave an update on the upcoming months in the activities of the commission, including: March — vote to approve tourism commissioner March/April — vote to enter into a lease for the Dickson Street Art Court space April — Presentation of Cyclo-cross outcomes, financial impacts and next steps May — strategic planning session June — Budget revision Rawn also recognized new personnel and personnel changes, including the promotion of Griffin Stroupe to Director of Sales at the Fayetteville Town Center, the addition of Megan Oswald as a part time Event Services Coordinator at the town center and the addition of two University of Arkansas Hospitality Department interns to our team: Kelly Blome at Experience Fayetteville and Sofia Gisbert Rojas at the Fayetteville Town Center. It's now been almost a month since we hosted Cyclo-cross. We are producing an outcomes report that will be shared in April. Rawn shared a few highlights: 17,000 attendees with over 512 volunteers who invested over 2,500 hours into the event. Official merchandise partners sold out of all of their inventory and said it was one of the best events they've attended. The Center for Business and Economic Research at the University of Arkansas is conducting a regional economic impact study of cycling events and the World Championships will be included in that report with CBERB conducting attendee surveys during and post event. This study may be available later this summer. The Experience Fayetteville Sales team was very busy during Cyclo-cross coordinating housing groups and staffing the welcoming at XNA. Additionally, they received 4 more RFPS for sporting events and secured Fayetteville housing for 2 out of the 4. They are looking forward to a 500+ conference in March 2022 called Culture Con which will be held at the Fayetteville Town Center and the Graduate Hotel. Visitors Center numbers showed a great December in terms of attendance and sales with more than $8,700 in December sales. Our numbers were lower in January which was expected as we closed for 2 weeks prior to Cyclo-cross for event preparation. The Fayetteville Town Center has hosted 24 events since we last met as a commission, and is showing an 81 % increase in event booking compared to last year's 2nd Quarter. Carpet will be installed in August, with electrical outlet work occurring now and repairs on the tower continuing. Rawn stated that commissioners will see an addendum for a one-year renewal contract for the Sells Agency, our agency on record and in late V quarter of this year, we will put out a bid for our agency on record. Rawn ended her report with an HMR financial update which includes an annual growth for 2021 was an 8% increase from 2019 and a 33% from 2020. Additionally, Rawn stated that our organization ended 2021 with 14% increase from our projected revenues. C. Financial Report Jennifer Walker stated that the December financials were year-end, unaudited financials which is why they are listed as draft statements. We met 114% of our revenue goals and 88% of our expenditure goal and as a result we ended 2021 with net income of approximately a million dollar which will roll back into our fund balance unless the commission re -directs it. With no questions on December financials, Walker reported on January financials and stated that our tax revenue was right on target and the town center already has $140,000 revenue booked for the year. Experience Fayetteville's net income for January is $156,000. Our Fund balance is 4.9 million and with removing Cyclo-cross, it is still 4 million dollars. Rawn included information that any revenue from Cyclo-cross is to go to legacy initiatives per the grant requirements. Commissioner Martin asked when a decision needed to be made on the unreserved fund balance and Rawn clarified there isn't a time frame. Commissioner Martin asked if we could look at a list in March of priority items for the Fayetteville Town Center so we could determine if we wanted to create a plan and timeline for that. Chair Kinney stated that the list could be prioritized to reflect what we've heard on sales calls that can help it be sold even more often. D. Marketing Report. Hazel Hernandez, Vice President of Marketing and Communication, gave a brief update on the Cyclo-cross website. She spoke about average daily sessions to the Cyclo-cross website, 4,833 with over 96,000 unique users with US users representing 2/3 of that audience and non -US representing the other 1/3. Top traffic sources included organic search, direct, social organic and social advertising. Top referral sites were listed with Experience Fayetteville being the first and Fayetteville Flyer being the second. Two local sites, Oz Trails and Visit Bentonville were also listed — we appreciate this support and it shows that it truly was a regional effort and event. 17,500 spectators were on hand over the three days with 295,200 people viewing the race through GCN which is the online streaming service for the US — this online number will grow as we get Neilsen numbers from other countries. E Vote. Fayetteville Town Center elevator contract. Staff is seeking authority to accept a renewal quote for a three-year service agreement with Otis Elevators for a rate of $35,100. CEO Rawn discussed this contract which covers all 4 elevators in the building. Commissioner Sanderson asked for clarification on the savings amount which is over $9,000 a year. General Manager Tyler Wilson explained that the level of service will remain the same, the platinum level, they were able to negotiate significant savings. The commissioners commended Wilson on this great job. Chair Kinney asked for a motion and Commissioner Bunch made a motion to approve the elevator contract with Commissioner Martin seconding it and it approved unanimously. F. Vote. Sells Agency Contract. Staff seeking authorization to enter into a one-year contract extension with Sells Agency, our Agency of Record to expire on December 31, 2022. Rawn explained that the full contract is included in the packet with an addendum included to extend the contract through this year and asked if there were any questions. Rawn expressed her appreciation for the Sells Agency's work with Cyclo-Cross, noting that many of Sells' team were onsite the week of Cyclo-Cross, doing a lot of behind -the -scenes work. Commissioner Bunch made a motion to extend the contract for another year with Commissioner Sanderson seconding and it approved unanimously. G. Additions and announcements: Rawn wanted to welcome Commissioner Kinion as it is his first meeting after being appointed by Mayor Jordan to fill the vacancy left by Matthew Petty. Rawn asked commissioners to take a Cyclo-cross commemorative poster and also a bobble hat when they left the meeting. Commissioner Bunch asked for an update on the mobile Visitors Center and we have a ready date of March 18t" and Hernandez shared that her team is working on a marketing campaign to welcome the van to Fayetteville. CEO Rawn asked for clarification on how we should proceed with interviewing of the A&P applicants. Rawn asked if Commissioner Bunch and Rawn could talk with the city clerk's office to determine a timeline for interviewing the candidates and they can let the commission know. The commissioners agreed this was a good plan. With no other business, Chair Kinney adjourned the meeting at 2:51 pm. Minutes submitted by Amy Stockton, Director of Operations, Experience Fayetteville. Fayetteville Advertising and Promotion Commission CEO Updates March 2022 Commission We received four applicants for the tourism industry seat that will be vacant at the end of March. o Two applicants were not eligible to serve: one resided outside the city limits and one was not from the hospitality or tourism industry. o All commissioners received applications from the two eligible applicants, and selected to bring forth Commissioner Moya's name as the recommended candidate to fill the position • What to expect in the coming months: o April — Presentation on Cyclo-cross outcomes, financial impacts, and next steps o June — Budget revision Fayetteville A&P Team • Experience Fayetteville hosted this year's Arkansas Governor's Conference on Tourism, held February 27t" through March 1st at the Graduate Hotel with meals and receptions at the Fayetteville Town Center. • The Opening Reception was held at the SEC Club at Razorback Stadium • Additionally, several team members moderated or served on panel sessions. • Our Experience Fayetteville sales team handled the hotel contracts which yielded more than 520 nights of lodging spread over 5 different hotel properties in Fayetteville. Personnel The Fayetteville Town Center has a part-time Event Coordinator job opening Experience Fayetteville is hiring a part- time Visitors Center Coordinator Cycling • The U.S. Pro Cup returns to Fayetteville April 20-24t" • The event kicks off the professional calendar in the U.S. and is expected to draw top professional mountain bikers including national, continental, and world champions to town • Four days of racing at Centennial Park, including amateur and professional racing Experience Fayetteville Sales • The team participated in the Arkansas Sports Summit which brought together sports sales professionals from across the state to discuss topics of sports recovery and the future of E-Sports as one of the fastest growing market segments since the pandemic. • Worked to establish all appropriate Fayetteville sports facility listings to launch our newest tool - Huddle Up Group Sports Index/ Scout - a program that matches DMOs and Sports Planners. • Secured several bus tour groups through a local receptive to include two international tour groups for the spring and fall Visitor Center Sales and Attendance • VC saw 352 visitors in February 2022 o 24% increase from January 2022 (285) • VC had $6,192.70 in sales in February 2022 o 46% increase from January 2022 ($3,339.30) o Our limited edition Cyclo-cross poster sales totaled $3,990.00 Community Engagement • We are excited to be hosting our first full season of First Thursday since 2019. First Thursday kicks off in May and will continue through October • Cache has asked Chloe Bell, Community Engagement Manager, to be a part of its 214 Leadership Council which will further her connectivity with the local arts community and continue the effort to develop Fayetteville as a regional hub for arts and culture resources. Fayetteville Town Center • Fayetteville Town Center has hosted 14 events since our February update. • We replaced the failing water heater for Fayetteville Town Center with a tankless water heater. This replacement heater will save energy and provide instant hot water to the catering kitchen and back of the house. • The next stage of the tower repair project, glass replacement and repair, is complete. All broken and damaged windows in the tower have been replaced. • We have installed a new ozone ionization filter to the Peace Fountain. This addition to should reduce the continual maintenance schedule and improve the fountain functionality. • Final repairs to the plaza concrete warming system will take place the second week of April. Post -install, a section of the heating element was nonfunctional, and we have been working with Milestone to find the least disruptive time to perform this repair. The remaining sections have been functional and effective at removing snow and ice from the plaza. • The Sales team has adjusted the process for social media posts and has increased the focus on posts emphasizing the space as a destination for conferences and corporate events. This effort has increased inquiry requests Two new pieces of business of note: Touge Con, a mini car convention, and the Northwest Arkansas Barber and Beauty Conference. • We have been upgrading the Hospitality Suite with a new wet bar, carpet, and other amenities making the suite a premium space for guests and event speakers. Marketing HMR and Lodging Info • Occupancy February 2022 50.7% • Occupancy February 2021 42.2% • Occupancy February 2020 62.2% • Occupancy YTD 2022: 48.8% compared to YTD 2021: 40.8% and YTD 2022: 55% ADR (Average Daily Rate) February 2022 is up 30% over February 2021 and up just 3% over February 2020. Financial Reports See attached memos 5MINSE C 7� a • 0 OIL 0 OAL! 6.60% 0.75% 4.19% C • 0 U -1420% % change over previous year 18.27% jan feb S apr I (may I jun jul I aug I sep Oct I nov I dec Monthly A&P Tax Collections 2022** S353,407] 0 0 0 O O 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CD CD 0 0 0 0 0 0 o a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 LC) C9 I� 00 G) O T- N m q Ln Q0 I� 00 Cr O N CY) � L-0 C9 I- 00 6) 0 N N N N N N (Iq N N N C`) C'7 C`7 C`') C`') CY') C'7 C`7 C`') C`) 171- 34.04% 28.38% -0.15%-17.18% change % change from from 2021 2019 ** This represents one half of the total HMR collections. The other half supports the Parks and Recreation department. Memo P l[AY� To: Molly Rawn, CEO, Experience Fayetteville Fayetteville Advertising & Promotion Commissioners From: Jennifer Walker, VP Finance, Experience Fayetteville Date: March 10, 2022 Re: Financial Statements — February 2022 This packet contains Experience Fayetteville Financial Statements for the month ended February 28, 2022. The following reports are included in the packet: • Summary P&L Financials for month ended February 28, 2022 • Balance Sheet for month ended February 28, 2022 Target Budget January — 17% • Revenue target 17% of budget or higher by the end of February 2022. Expenditures target 17% or lower at February 2022. Total Revenue YTD: $629,935 or 13%; We are 4% behind target. Tax Receipts - $578,827 (under budget by 3% ytd) Town Center - $30,863 (note $154k+ unearned revenue on Balance Sheet) Other - $20,245 Total Operating Expenditure YTD: $560,443 or 12%; this is 5% under budget. EF Main - $463,246 Town Center - $97,198 HMR tax - February Collections (January activity) were below seasonally adjusted budget expectations by 2%. Operating Net Income is $69,492 year to date. A few Cyclocross expenses remain outstanding — a full report will be available at the April meeting. Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ February 28, 2022 CONSOLIDATED Year -to -Date Actual Budget Over/(Under) Budget % of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 578,827 4,154,500 (3,575,673) 13.9% Rental Revenue 29,376 478,800 (449,424) 6.1% Event Revenue 256 33,550 (33,294) 0.8% Visitor Center Store Revenue 18,986 42,000 (23,014) 0.0% Parking Revenue 1,196 23,000 (21,804) 5.2% Advertising Revenue - 5,000 (5,000) 0.0% Grant/Other Revenue - 86,500 (86,500) 0.0% Interest and Investment Revenue 1,295 22,000 (20,705) 5.9% Total Revenue 629,935 4,845,350 (4,215,415) 13.0% Expenses Operating Expenses Rental Expenses 3,884 106,000 (102,116) 3.7% Event Expenses 1,151 88,450 (87,299) 1.3% Visitor Center & Museum Store 11,028 43,700 (32,672) 25.2% Personnel 237,845 1,439,624 (1,201,779) 16.5% Sales & Marketing 85,668 1,152,453 (1,066,785) 7.4% Office and Administrative 98,444 722,818 (624,374) 13.6% Bond Payments 116,930 707,000 (590,070) 16.5% Contribution to Capital Reserves - 100,000 (100,000) 0.0% Other grants 5,493 155,600 (150,107) 0.0% Mobile VC - 35,000 (35,000) 0.0% TheatreSquared Contribution - 200,000 (200,000) 0.0% Total Operating Expenses 560,443 4,750,645 (4,190,202) 11.8% Net Operating Income/(Loss) 69,492 94,705 (25,213) 0.0% Other Income Unrealized Gain/(Loss) on Investments (163,987) 0.0% Other Expenses FFE & Improvements 87,581 595,000 (507,419) 14.7% Depreciation Expense 22,246 0.0% Cost of Goods Sold (1,622) 0.0% Net Income/(Loss) (without Cyclocross Grants) (202,700) (500,295) 461,582 40.5% Net Income/(Loss) for Cyclocross Events (437,861) Total Net Income/(Loss) (640,561) Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ February 28, 2022 Experience Fayetteville Year -to -Date Actual Budget Over/(Under) Budget %of Budget Revenue Hotel, Motel, Restaurant Taxes Revenue 578,827 4,154,500 (3,575,673) 13.9% Rental and Event Revenue - 44,350 (44,350) 0.0% Visitor Center Store Revenue 18,986 42,000 (23,014) 45.2% Advertising Revenue - 5,000 (5,000) 0.0% Grant Revenue (Cycling Coord / DSAC) - 86,500 (86,500) 0.0% Interest and Investment Revenue 1,259 19,000 (17,741) 6.6% Total Revenue 599,072 4,351,350 (3,752,278) 13.8% Expenses Operating Expenses Event Expenses 651 88,450 (87,799) 0.7% Visitor Center & Museum Store 11,028 43,700 (32,672) 25.2% Personnel 196,703 1,020,194 (823,491) 19.3% Sales & Marketing 82,173 1,126,353 (1,044,180) 7.3% Office and Administrative 50,269 379,523 (329,254) 13.2% Bond Payments 116,930 707,000 (590,070) 16.5% Contribution to Capital Reserve - 100,000 (100,000) 0.0% Other Grants 5,493 155,600 (150,107) 0.0% Mobile VC - 35,000 (35,000) 0.0% TheatreSquared Contribution - 200,000 (200,000) 0.0% Total Operating Expenses 463,246 3,855,820 (3,392,574) 12.0% Net Income/(Loss) Before Other Revenue and Expenses 135,826 495,530 (359,704) 27.4% Other Income Unrealized Gain/(Loss) on Investments (163,987) - (163,987) 0.0% Other Expenses FFE & Improvements - 90,000 (90,000) 0.0% Depreciation Expense 12,556 Cost of Goods Sold (1,622) Net Income/(Loss) (39,094) 405,530 1 (280,637) -9.6% Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ February 28, 2022 Town Center Year -to -Date Actual Budget OverAUnder)of Budget Budget Revenue Rental Revenue 29,376 468,000 (438,624) 6.3% Event Revenue 256 - 256 0.0% Parking Revenue 1,196 23,000 (21,804) 5.2% Interest and Investment Revenue 36 3,000 (2,964) 0.0% Total Revenue 30,863 494,000 (463,137) 6.2% Expenses Operating Expenses Rental Expenses 3,884 106,000 (102,116) 3.7% Event Expenses 500 - 500 0.0% Personnel 41,143 419,430 (378,287) 9.8% Sales & Marketing 3,495 26,100 (22,605) 13.4% Office and Administrative 48,176 343,295 (295,119) 14.0% Total Operating Expenses 97,198 894,825 (797,627) 10.9% Net Income/(Loss) Before Other Revenue and Expenses (66,334) (400,825) 334,491 16.5% Other Expenses FFE & Improvements 87,581 505,000 (417,419) 82.7% Depreciation Expense 9,690 Net Income/(Loss) (163,605) (905,825)1 742,220 1 18. . Modified Accrual Fayetteville A and P Commission Statement of Budget, Revenue and Expense Year -to -Date @ February 28, 2022 Cyclocross Events Year -to -Date Actual Budget Over/(Under)of Budget Budget Revenue Other Revenue Cyclocross Grant Funds - - - 0.0% Cyclocross Events Revenue 1,061,691 300,000 761,691 353.9% Interest and Investment Revenue 773 - 773 0.0% Total Revenue 1,062,464 300,000 762,464 354.2% Expenses Operating Expenses Contract Labor - - 0.0% Marketing - 0.0% Office and Administrative Expenses - - 0.0% Cyclocross Events 1,500,326 1,715,000 (214,674) 87.5% Total Operating Expenses 1,500,326 1,715,000 (214,674) 87.5% Net Income/(Loss) (437,861) (1,415,000) 977,139 30.9% Grant Carry -Forward 1,541,067 Cumulative Net Income / (Loss) 1,103,206 Fayetteville A&P Commission Balance Sheet As of February 28, 2022 ASSETS Current Assets Cash 3,728,994 Investments 1,201,911 Accounts Receivable 368,637 Prepaid Expenses 47,562 Deposits 30,617 Visitors Guide Trade 3,052 I nventory Asset 21,455 Total Current Assets 5,402,228 Other Assets Capital Assets Furniture & Fixtures 96,641 Equipment 641,976 EF/CVB Building 940,410 EF/CVB Land 198,621 Building Additions 971,952 Walker -Stone House 1,167,218 Construction in Progress 27,109 Accumulated Depreciation (1,377,556) Total Other Assets 2,666,370 TOTAL ASSETS 8,068,598 LIABILITIES AND EQUITY Current Liabilities Accounts Payable 276,701 Unearned Revenue 140,578 Total Liabilities 417,279 Equity Unreserved Fund Balance 5,271,975 Operating Reserve 1,000,000 Capital Reserve 1,000,000 Temporarily Restricted Funds 439,895 Net Revenue Gain/(Loss) on Investments (24,039) Net Revenue without Cyclocross 22,897 Net Revenue for Cyclocross (59,408) (60,551) Total Equity 7,651,319 TOTAL LIABILITIES AND EQUITY 8,068,598 E Memo X P FAY To: Molly Rawn, CEO, Fayetteville Advertising & Promotion Commission Fayetteville Advertising & Promotion Commissioners From: Jennifer Walker, VP Finance, Fayetteville Advertising and Promotion Commission Date: March 17, 2022 Re: 2021 Financial Audit Engagement Letter with BKD Background: Fayetteville Advertising and Promotion Commission contracted with BKD, LLP to perform audit services for the years ending 2018 - 2020. This agreement includes filing the IRS Form 990 for the Clinton House Museum. The fee for auditing the 2021 financials is estimated to be $22,500 for the audit and $2,350 for preparation of the Form 990. The 2022 operating budget allocated $25,000 for the audit and $2,800 for the Form 990 preparation. The 2021 engagement letter is attached for reference. Staff Recommendation: A vote to authorize CEO Molly Rawn to execute an engagement letter with BKD, LLP for 2021 audit services estimated at $24,850. BKD CPAs & Advisors March 17, 2022 809 S. 52nd Street, Suite A I P.O. Box 1893 1 Rogers, AR 72757-1893 479.845.0270 1 Fax 479.845.0840 1 bkd.com Board of Commissioners Ms. Molly Rawn, CEO FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION 21 South Block Avenue, Suite 100 Fayetteville, AR 72701 We appreciate your selection of BKD, LLP as your service provider and are pleased to confirm the arrangements of our engagement in this contract. Within the requirements of our professional standards and any duties owed to the public, regulatory, or other authorities, our goal is to provide you Unmatched Client Service®. In addition to the terms set forth in this contract, including the detailed Scope of Services, our engagement is governed by the following, incorporated fully by this reference: • Terms and Conditions Addendum Summary Scope of Services As described in the attached Scope of Services, our services will include the following: FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION • Audit Services for the year ended December 31, 2021 • Tax Services for the year ended December 31, 2021 Engagement Fees The base fee for our services will be $22,500 for audit services and $2,350 for the preparation of the Form 990. Included in this fee are travel costs and fees for services from other professionals, if any, as well as an administrative fee of five (5) percent to cover items such as copies, postage and other delivery charges, supplies, technology -related costs such as software licensing, user access, and research tools, and similar expense items. Our pricing for this engagement and our fee structure are based upon the expectation that our invoices will be paid promptly. Payment of our invoices is due upon receipt. PRAXITY P�� Empowering Business Globally FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 2 Additional Costs Related to Implementing New Standards Assistance and additional time as a result of the adoption of new standards, such as those listed in the attached New Auditing and Accounting Standards, are not included within our standard engagement fees. These fees will be based on time expended and will vary based on the level of assistance and procedures required. Contract Agreement Please sign and return this contract to indicate your acknowledgment of, and agreement with, the arrangements for our services including our respective responsibilities. BKD, LLP Acknowledged and agreed to as it relates to the entire contract, including the Scope of Services and Terms and Conditions Addendum, on behalf of FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION. :1 Molly Rawn, CEO DATE FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 3 Scope of Services The following apply for all services: Assistance Our timely completion of services depends on the assistance you provide us in accumulating information and responding to our inquiries. Inaccuracies or delays in providing this information or the responses may result in untimely filings or inability to meet other deadlines. Responsibility for We may perform additional services for you that are not covered by this contract. Outcomes You agree to assume full responsibility for the substantive outcomes of the contracted services and for any other services we may provide, including any findings that may result. You also acknowledge these services are adequate for your purposes, and you will establish and monitor the performance of these services to ensure they meet management's objectives. All decisions involving management responsibilities related to these services will be made by you, and you accept full responsibility for such decisions. We understand you have designated (or will) a management -level individual to be responsible and accountable for overseeing the performance of these services, and you have determined (or will) this individual is qualified to conduct such oversight. Additional Costs Our fees do not consider additional efforts driven by the SARS-CoV-2 virus and Related to COVID- the related COVID-19 (COVID-19) environment. Complexities and 19 uncertainties related to various provisions of new laws and the continued issuance of interpretative and procedural guidance from federal agencies may affect our services. Fees related to COVID-19 activities will be billed based on time expended. Additional efforts or services may include: Accounting and auditing issues such as: going concern, collectability of receivables, inventory valuation, federal awards subject to single audit, etc. FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 4 Audit Services We will audit the basic financial statements and related notes to the basic financial statements for the following entity with the objective of expressing an opinion on the financial statements, in all material respects, with accounting practices permitted by Arkansas Code Section 10-4-202, which is a regulatory basis of accounting that differs from accounting principles generally accepted in the United States of America; issuing a report on your compliance based on the audit of your financial statements; issuing a report on your internal control over financial reporting based on the audit of your financial statements. FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION as of and for the year ended December 31, 2021 We will also provide you with the following nonattest services: • Preparing a draft of the financial statements and related notes Cynthia Burns, Director, is responsible for supervising the engagement and authorizing the signing of the report or reports. We will issue a written report(s) upon completion of our audit(s), addressed to the following parties: Entity Name Party Name FAYETTEVILLE ADVERTISING AND Board of Commissioners PROMOTION COMMISSION Ms. Molly Rawn, CEO You are responsible to distribute our reports to other officials who have legal oversight authority or those responsible for acting on audit findings and recommendations, and to others authorized to receive such reports. The following apply for the audit services described above: Our We will conduct our audit in accordance with auditing standards generally Responsibilities accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit of the financial statements to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by fraud or error. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 5 Limitations & Because of the inherent limitations of an audit, together with the inherent Fraud limitations of internal control, an unavoidable risk that some material misstatements or noncompliance having a direct and material effect may not be detected exists, even though the audit is properly planned and performed in accordance with GAAS. In making our risk assessments, we consider internal control relevant to your preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of your internal control. However, we will communicate to you in writing any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we identify during the audit. Also, in the future, procedures could become inadequate because of changes in conditions or deterioration in design or operation. Two or more people may also circumvent controls, or management may override the system. We are available to perform additional procedures with regard to fraud detection and prevention at your request, subject to completion of our normal engagement acceptance procedures. The actual terms and fees of such an engagement would be documented in a separate contract to be signed by you and BKD, LLP. Opinion We cannot provide assurance that an unmodified opinion will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion, add an emphasis -of -matter or other matter paragraph(s), or withdraw from the engagement. If we discover conditions that may prohibit us from issuing a standard report, we will notify you as well. In such circumstances, further arrangements may be necessary to continue our engagement. Your Management and, if applicable, those charged with governance acknowledge and Responsibilities understand their responsibility for the following: • For the preparation and fair presentation of the financial statements in accordance with the regulatory basis of accounting permitted by the State of Arkansas • For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error • For identifying and ensuring compliance with the laws, regulations, contracts, and grants applicable to your activities (including your federal award programs) • To provide us with: o Access to all information of which you are aware that is relevant to the preparation and fair presentation of the financial statements such as records, documentation, and other matters o Additional information that we may request for the purpose of the audit o Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit evidence FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 6 The results of our tests of compliance and internal control over financial reporting performed in connection with our audit of the financial statements may not fully meet the reasonable needs of report users. Management is responsible for obtaining audits, examinations, agreed -upon procedures, or other engagements that satisfy relevant legal, regulatory, or contractual requirements or fully meet other reasonable user needs. Written As part of our audit process, we will request from management and, if applicable, Confirmations those charged with governance written confirmation acknowledging certain Required responsibilities outlined in this contract and confirming: The availability of this information Certain representations made during the audits for all periods presented The effects of any uncorrected misstatements, if any, resulting from errors or fraud 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 Peer Review Government Auditing Standards require that we provide you with a copy of our Report most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our most recent peer review report accompanies this contract. Implementation of Unless indicated in our contract, our services and related fees do not include New Standards substantive assistance beyond routine advice related to the adoption of new accounting and reporting standards. Should you require assistance, we will bill you at our standard hourly rates. Assistance with Transactions or changes in business may require you to apply existing standards Application of differently each year, such as when business operations create new revenue Standards streams, operations are discontinued, liquidity or operational challenges are encountered, business combinations are executed, etc. We welcome your questions throughout the year and are happy to provide general guidance and routine support; however, our engagement does not include substantive effort to assist you with applying standards to these circumstances, unless otherwise indicated in the contract. FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 7 Tax Services We will also prepare the following returns and reports. If there are other tax returns you expect us to prepare, please inform us as soon as possible. FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION for the year ended December 31, 2021 • Form 990, Return of Organization Exempt from Income Tax The following apply for the tax services described above: Filing You may be required to file returns in additional jurisdictions, and you are Requirements ultimately responsible for meeting your filing requirements. We are not responsible for any returns other than those listed in the contract. However, we are available for consultation regarding your filing responsibilities. This engagement does not include any tax services not specifically listed in the contract. However, we would be pleased to research and/or consult with you regarding other tax matters, such as proposed or completed transactions or projections. We will render additional invoices for such services at our standard billing rates. FinCEN Form 114 Generally, all U.S. persons are required to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR), annually if they have a financial interest in or signature authority over financial accounts, including bank, securities, or other types of financial accounts, in a foreign country and the aggregate value of these financial accounts exceeded $10,000 at any time during the calendar year. Failure to file an FBAR when required may potentially result in civil penalties, criminal penalties, or both. Unless our contract indicates otherwise, we have not been engaged to prepare your FBAR. However, we are available to assist you in meeting this filing obligation at your request. If you wish to engage us to assist with your FBAR filing, additional fees at our standard billing rates will apply. It is your responsibility to inform us of all financial interests in or signature authority over foreign financial accounts. Your Management has the final responsibility for the returns and representations Responsibilities therein and, therefore, should review them carefully before signing. Management is also responsible for timely filing of returns and timely payment of any amounts due. It is your responsibility to provide all the information required for the preparation of complete and accurate returns. You should retain all the documents, canceled checks, and other data that form the basis of income and deductions. These may be necessary to prove the accuracy and completeness of your returns to a taxing authority. FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 8 Taxing Authorities Your returns may be selected for review by the taxing authorities. Any proposed adjustments by the examining agent are subject to certain rights of appeal. In the event of such government tax examination, we will be available upon request to assist you and will render additional invoices for the time and expenses incurred. Tax Positions & While preparing your returns, we will inform you of any material tax positions Transactions of which we are aware that, in our judgment, do not meet thresholds established by law or professional standards. Tax law or professional standards may require disclosure of such position(s) as a part of your federal tax return. You agree to inform us of any tax positions of which you are aware would likely not succeed in the event of a challenge by taxing authorities. The law provides for a penalty as high as $200,000 per transaction for failure to adequately disclose certain transactions the U.S. Department of Treasury designates as "reportable transactions." A description of these transactions is available at https://www.bkd.com/services/reportable-transactions, or you may request a paper version from us. Unless notified in writing, we will prepare your return with the assumption you have not engaged in any reportable transaction. FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 9 BKD, LLP Terms and Conditions Addendum GENERAL Overview. This addendum describes BKD, LLP S standard terms and conditions ("Terms and Conditions") applicable to Our provision of services to the Client ("You"). The Terms and Conditions are a part of the contract between You and BKD, LLP. For the purposes of the Terms and Conditions, any reference to "Firm," "We," "Us," or "Our" is a reference to BKD, LLP (`BKD"), and any reference to "You" or "Your" is a reference to the party or parties that have engaged Us to provide services. BILLING, PAYMENT, & TERMINATION DISPUTES & DISCLAIMERS 5. 2. Billing and Payment Terms. We will bill You for Our professional fees and costs as outlined in Our contract. Interest will be charged on 6 any unpaid balance after 30 days at the rate of 10 percent per annum, or as allowed by law at the earliest date thereafter, and highest applicable rate if less than 10 percent. We reserve the right to suspend or terminate Our work for this engagement or any other engagement for nonpayment of fees. If Our work is suspended or terminated, You agree that We will not be responsible for Your failure to meet governmental and other deadlines, for any penalties or interest that may be assessed against You resulting from Your failure to meet such deadlines, and for any other damages (including but not limited to consequential, indirect, lost profits, or punitive damages) incurred as a result of the suspension or termination of Our services. Our fees may increase if Our duties or responsibilities are increased by rulemaking of any regulatory body or any additional new accounting or auditing standards. Our engagement fees do not include any time for post -engagement consultation with Your personnel or third parties, consent letters and related procedures for the use of Our reports in offering documents, inquiries from regulators, or testimony or deposition regarding any subpoena. Charges for such services will be billed separately. Billing Records. If these services are determined to be within the scope and authority of Section 1861(v)(1)(I) of the Social Security Act, We agree to make available to the Secretary of Health and Human Services, or to the U.S. Comptroller General, or any of their duly authorized representatives, such of Our books, documents, and records that are necessary to certify the nature and extent of Our services, until the expiration of four (4) years after the furnishing of these services. This contract allows access to contracts of a similar nature between subcontractors and related organizations of the subcontractor, and to their books, documents, and records. 4. Termination. Either party may terminate these services in good faith at any time for any reason, including Your failure to comply with the terms of Our contract or as We determine professional standards require. Both parties must agree, in writing, to any future modifications or extensions. If services are terminated, You agree to pay BKD for time expended to date. In addition, You will be billed costs and fees for services from other professionals, if any, as well as an administrative fee of four (4) percent to cover items such as copies, postage and other delivery charges, supplies, technology -related costs such as software licensing, user access, and research tools, and similar expense items. Mediation. Any dispute arising out of or related to this engagement will, prior to resorting to litigation, be submitted for nonbinding mediation upon written request by either party. Both parties agree to try in good faith to settle the dispute in mediation. Unless the parties agree otherwise, the American Arbitration Association ("AAA") will administer any such mediation in accordance with its Commercial Mediation Rules. The mediator will be selected by agreement of the parties. If We cannot agree, a mediator shall be designated by the AAA. The mediation proceeding shall be confidential. Each party will bear its own costs in the mediation, but the fees and expenses of the mediator will be shared equally. Indemnification. Unless disallowed by law or applicable professional standards, You agree to hold BKD harmless from any and all claims which arise from knowing misrepresentations to BKD, or the intentional withholding or concealment of information from BKD by Your management or any partner, principal, shareholder, officer, director, member, employee, agent, or assign of Yours. You also agree to indemnify BKD for any claims made against BKD by third parties, which arise from any wrongful actions of Your management or any partner, principal, shareholder, officer, director, member, employee, agent, or assign of Yours. The provisions of this paragraph shall apply regardless of the nature of the claim. Statute of Limitations. You agree that any claim or legal action arising out of or related to this contract and the services provided hereunder shall be commenced no more than one (1) year from the date of delivery of the work product to You or the termination of the services described herein (whichever is earlier), regardless of any statute of limitations prescribing a longer period of time for commencing such a claim under law. This time limitation shall apply regardless of whether BKD performs other or subsequent services for You. A claim is understood to be a demand for money or services, demand for mediation, or the service of suit based on a breach of this contract or the acts or omissions of BKD in performing the services provided herein. This provision shall not apply if enforcement is disallowed by applicable law or professional standards. 8. Limitation of Liability. You agree that BKD's liability, if any, arising out of or related to this contract and the services provided hereunder, shall be limited to the amount of the fees paid by You for services rendered under this contract. This limitation shall not apply to the extent it is finally, judicially determined that the liability resulted from the intentional or willful misconduct of BKD or if enforcement of this provision is disallowed by applicable law or professional standards. 9. Waiver of Certain Damages. In no event shall BKD be liable to You or a third party for any indirect, special, consequential, punitive, or exemplary damages, including but not limited to lost profits, loss of revenue, interruption, loss of use, damage to goodwill or reputation, regardless of whether You were advised of the possibility of such damages, regardless of whether such damages were reasonably foreseeable, and regardless of whether such damages arise under a theory of contract, tort, strict liability, or otherwise. 10. Severability. If any portion of this contract is deemed invalid or unenforceable, said finding shall not operate to invalidate the remainder of the terms set forth in this contract. FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 10 11. Assignment. You acknowledge and agree that the terms and conditions of this contract shall be binding upon and inure to the parties' successors and assigns, subject to applicable laws and regulations. 12. Disclaimer of Legal or Investment Advice. Our services do not constitute legal or investment advice. RECORDS, WORKPAPERS, DELIVERABLES, & PROPRIETARY INFORMATION 13. Maintenance of Records. You agree to assume full responsibility for maintaining Your original data and records and that BKD has no responsibility to maintain this information. You agree You will not rely on BKD to provide hosting, electronic security, or backup services, e.g., business continuity or disaster recovery services, to You unless separately engaged to do so. You understand that Your access to data, records, and information from BKD's servers, i.e., BKDconnect, can be terminated at any time and You will not rely on using this to host Your data and records. 14. BKD Workpapers. Our workpapers and documentation retained in any form of media for this engagement are the property of BKD. We can be compelled to provide information under legal process. In addition, We may be requested by regulatory or enforcement bodies (including any State Board) to make certain workpapers available to them pursuant to authority granted by law or regulation. Unless We are prohibited from doing so by law or regulation, BKD will inform You of any such legal process or request. You agree We have no legal responsibility to You in the event We determine We are obligated to provide such documents or information. In addition, You agree to compensate or reimburse BKD for all costs and expenses, including reasonable attorney's fees, associated with BKD's compliance with requests or demands for its workpapers or other information related to this engagement, and for any testimony required by summons or subpoena. 15. Use of Deliverables and Drafts. You agree You will not modify any deliverables or drafts prepared by Us for internal use or for distribution to third parties. You also understand that We may on occasion send You documents marked as draft and understand that those are for Your review purpose only, should not be distributed in any way, and should be destroyed as soon as possible. Our report on any financial statements must be associated only with the financial statements that were the subject of Our engagement. You may make copies of Our report, but only if the entire financial statements (exactly as attached to Our report, including related footnotes and supplementary information, as appropriate) are reproduced and distributed with Our report. You agree not to reproduce or associate Our report with any other financial statements, or portions thereof, that are not the subject of Our engagement. 16. Proprietary Information. You acknowledge that proprietary information, documents, materials, management techniques, and other intellectual property are a material source of the services We perform and were developed prior to Our association with You. Any new forms, software, documents, or intellectual property We develop during this engagement for Your use shall belong to Us, and You shall have the limited right to use them solely within Your business. All reports, templates, manuals, forms, checklists, questionnaires, letters, agreements, and other documents which We make available to You are confidential and proprietary to Us. Neither You, nor any of Your agents, will copy, electronically store, reproduce, or make any such documents available to anyone other than Your personnel. This provision will apply to all materials whether in digital, "hard copy" format, or other medium. REGULATORY 17. U.S. Securities and Exchange Commission ("SEC') and other Regulatory Bodies. Where We are providing services either for (a) an entity that is registered with the SEC, (b) an affiliate of such registrant, or (c) an entity or affiliate that is subject to rules, regulations, or standards beyond those of the American Institute of Certified Public Accountants ("AICPA"), any term of this contract that would be prohibited by or impair Our independence under applicable law or regulation shall not apply to the extent necessary only to avoid such prohibition or impairment. 18. Offering Document. You may wish to include Our report(s) on financial statements in an exempt offering document. You agree that any report, including any auditor's report, or reference to Our firm, will not be included in any such offering document without notifying us. Any agreement to perform work in connection with an exempt offering document, including providing agreement for the use of the auditor's report in the exempt offering document, will be a separate engagement. Any exempt offering document issued by You with which We are not involved will clearly indicate that We are not involved by including a disclosure such as, "BKD, LLP, our independent auditor, has not been engaged to perform and has not performed, since the date of its report included herein, any procedures on the financial statements addressed in that report. BKD, LLP also has not performed any procedures relating to this offering document." 19. BKD Not a Municipal Advisor. BKD is not acting as Your municipal advisor under Section 15B of the Securities Exchange Act of 1934, as amended. As such, BKD is not recommending any action to You and does not owe You a fiduciary duty with respect to any information or communications regarding municipal financial products or the issuance of municipal securities. You should discuss such matters with internal or external advisors and experts You deem appropriate before acting on any such information or material provided by BKD. TECHNOLOGY 20. Electronic Sites. You agree to notify Us if You desire to place Our report(s), including any reports on Your financial statements, along with other information, such as a report by management or those charged with governance on operations, financial summaries or highlights, financial ratios, etc., on an electronic site. You recognize that We have no responsibility to review information contained in electronic sites. 21. Electronic Signatures and Counterparts. This contract and other documents to be delivered pursuant to this contract may be executed in one or more counterparts, each of which will be deemed to be an original copy and all of which, when taken together, will be deemed to constitute one and the same agreement or document, and will be effective when counterparts have been signed by each of the parties and delivered to the other parties. Each party agrees that the electronic signatures, whether digital or encrypted, of the parties included in this FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION March 17, 2022 Page 11 contract are intended to authenticate this writing and to have the same force and effect as manual signatures. Delivery of a copy of this contract or any other document contemplated hereby, bearing an original manual or electronic signature by facsimile transmission (including a facsimile delivered via the internet), by electronic mail in "portable document format" (".pdf') or similar format intended to preserve the original graphic and pictorial appearance of a document, or through the use of electronic signature software, will have the same effect as physical delivery of the paper document bearing an original signature. 22. Electronic Data Communication and Storage. In the interest of facilitating Our services to You, We may send data over the internet, temporarily store electronic data via computer software applications hosted remotely on the internet, or utilize cloud -based storage. Your confidential electronic data may be transmitted or stored using these methods. In using these data communication and storage methods, We employ measures designed to maintain data security. We use reasonable efforts to keep such communications and electronic data secure in accordance with Our obligations under applicable laws, regulations, and professional standards. You recognize and accept that We have no control over the unauthorized interception or breach of any communications or electronic data once it has been transmitted or if it has been subject to unauthorized access while stored, notwithstanding all reasonable security measures employed by us. You consent to Our use of these electronic devices and applications during this engagement. OTHER MATTERS 23. Third -Party Service Providers. BKD may from time to time utilize third -party service providers, e.g., domestic software processors or legal counsel, or disclose confidential information about You to third - party service providers in serving Your account. BKD maintains, however, internal policies, procedures, and safeguards to protect the confidentiality and security of Your information. In addition, BKD will secure confidentiality agreements with all service providers to maintain the confidentiality of Your information. If We are unable to secure an appropriate confidentiality agreement, You will be asked to consent prior to BKD sharing Your confidential information with the third -party service provider. 24. Independent Contractor. When providing services to You, We will be functioning as an independent contractor; and in no event will We or any of Our employees be an officer of You, nor will Our relationship be that of joint venturers, partners, employer and employee, principal and agent, or any similar relationship giving rise to a fiduciary duty to You. 25. Use of BKD Name. Any time You intend to reference BKD's firm name in any manner in any published materials, including on an electronic site, You agree to provide Us with draft materials for review and approval before publishing or posting such information. 26. Praxity. BKD is an independent accounting firm allowed to use the name "Praxity" in relation to its practice. BKD is not connected, however, by ownership with any other firm using the name "Praxity." BKD will be solely responsible for all work carried out on Your behalf. In deciding to engage BKD, You acknowledge that We have not represented to You that any other firm using the name "Praxity" will in any way be responsible for Our work. 27. BKD Status as LLP. BKD is a registered limited liability partnership under Missouri law. Under applicable professional standards, partners of BKD, LLP have the same responsibilities as do partners in a general accounting and consulting partnership with respect to conformance by themselves and other professionals in BKD with their professional and ethical obligations. However, partners in a registered limited liability partnership do not have individual civil liability, directly or indirectly, for any debts, obligations, or liabilities of or chargeable to the registered limited liability partnership or each other, whether arising in tort, contract, or otherwise. 28. Entire Agreement. The contract, including this Terms and Conditions Addendum and any other attachments or addenda, encompasses the entire agreement between You and BKD and supersedes all previous understandings and agreements between the parties, whether oral or written. Any modification to the terms of this contract must be made in writing and signed by both You and BKD. 29. Force Majeure. We shall not be held responsible for any failure to fulfill Our obligations if such failure was caused by circumstances beyond Our control. 8550 United Plaza Blvd., Ste. 1001 — Baton Rouge, LA 70809 P &N 225-922-4600 Phone — 225-922-4611 Fax — pncpa.com Postlethwaite & Netterville Postlethwaite & Netterville and Associates, L.L.C. Report on the Firm's System of Quality Control To the Partners of BKD, LLP and the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of BKD, LLP (the firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May 31, 2020. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm's Responsibility The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any. Peer Reviewer's Responsibility Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act; audits of employee benefit plans, audits performed under FDICIA, an audit of a broker -dealer, and examinations of service organizations [SOC 1 and SOC 2 engagements]. As part of our peer review, we considered reviews by regulatory entities as communicated to the firm, if applicable, in determining the nature and extent of our procedures. Opinion In our opinion, the system of quality control for the accounting and auditing practice of BKD, LLP applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May 31, 2020, 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. BKD, LLP has received a peer review rating of pass. Baton Rouge, Louisiana November 2, 2020 1 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . D Outdoors y axperiencefayeitaMikle-cam it Came for the scenery, stay for the adventure? Fayetteville is overflowing with natural areas and parks, encompassing ON acres of land, 70parks wish 411 miles of paved and natural trails, 3 lakes, 43 athletic feldslcourts, a swimming pool, a SMX track, and even a skate park- Whatever you want to do, iVs free of charge. Experience all the beauty The Natural State has to offer In Fayetteville by enjoying Our beautiful lakes and rivers, breathtaking scenery, and innumerable waWng, jogging and biking trails. This city nestled in the Ozark Mountains makes an ideal spot for discovering your next big adventure. From cozy neighborhood parks to larger community parks. ynur closest green space. trail, ball fletd, baskiftall court pakilion, or picnic area is nmr far awayin FayettQWLe. ThB City afferg 47 parks, from corner to regional, eiO with its om attra{toons and Special features. City of Faye[tev+lie Parks List Gulley Park Walker park MKon Park Things To Do Outdoors I Trails I Northwest Arkansas 1 1 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . a . . 0 � [A Art r experiarrcefayetreville.eom FAT SLEEP G CALENDAR GUIDE Northwest Arkansas may be known for its jaw -dropping scenery, but Fayetteville also boasts a stunning cuitural landscape, thanks to a thriving art community_ Fayetteville has long been a mecca for some of the most skilled artists in the nation, fostering artistic creativity and bringing world- dass art to our little corner of Arkamsas. Everyone will rind something to admire In Fayettevillos arts scene! publrr art beautiriies nearly every corner of the City. while galleries and full slates of live artistic performances highlight the works of loKal arti�N year-round. Arts & Culture I Northwest Arka nsas I Experience Fayetteville EVENT DATE; AUGUST 27, 2022 Fayetteville Roots Fest 2022 The 12th annual Fayettevrlle Roots Festival is taking Over doWntown Fayetteville for a few EVENT DATE: TUNE 19, 2022 Fayetteville Roots on the Avenue The team behind the much4oved Fayetteville Roots Festival have a new event planned for EVENT GATE: APRIL 23, 2022 Garth Brooks at Razorback Stadium Fur the fret time in Razortaack StadlUm history, a major musical act will be openly U + Arts & Culture I Northwest Arkansas I Experience Fayetteville EVENT DATE: AUGUST 27, 2022 HIN111TSM0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Helps to further position Experience Fayetteville as the primary resource for visitor information related to Fayetteville and Northwest Arkansas. Increases direct engagement with locals/visitors to LE help enhance their Fayetteville experience while iYs happening,, or planning future trips. Creates opportunity to showcase Fayetteville offerings an,. target those festivals,, events/happenings with a shared niche audience. 6= BE N E f I 1S: =wIL =� ..................................................................................................................................................... Provides a safe, clean promote Fayettevill open air option in which to e to I ocal/visitors moving forward. rr Allows additional co-op marketing opportunities with do State Tourism, NATA, local businesses,, attractions, etc. 6 Further drive economic impact by increasing the number of visitors to local restaurants, lodging, retail establishments and attractions. 0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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