HomeMy WebLinkAbout2024-02-19 - Agendas - FinalFayetteville Advertising and
Promotion Commission
February 19, 2024
Location: Fayetteville Town Center, 15 W. Mountain Street
Commissioners:
Staff:
Chrissy Sanderson, Chair, Tourism & Hospitality Representative
Katherine Kinney, Tourism & Hospitality Representative
Todd Martin, Tourism & Hospitality Representative
Elvis Moya, Tourism & Hospitality Representative
Andrew Prysby, Commissioner at-large
Sarah Bunch, City Council Representative
Mike Wiederkehr, City Council Representative
Molly Rawn, CEO
I. Call to order at 2:00 p.m.
II. Old Business
Agenda
A. Review and approval of January minutes.
III. New Business
A. CEO Report. Molly Rawn. An executive overview of the previous month
B. Financial Report. Jennifer Walker, Vice President of Finance
C. Vote. Engagement Letter with Forvis, LLP for 2023 audit services.
D. Vote. Interior AV Upgrade at Fayetteville Town Center, Commercial Audio
Services.
E. Additions to the agenda may be added upon request from a majority of the
commissioners.
IV. Adjourn
Fayetteville Advertising and Promotion Commission
Minutes January 22, 2024
Fayetteville Town Center
Commissioners
Present:
Commissioners
Absent:
Staff:
Todd Martin, Chair Tourism & Hospitality Representative
Mike Wiederkehr, City Council Representative (online)
Chrissy Sanderson, Tourism & Hospitality Representative
Katherine Kinney, Tourism & Hospitality Representative (online)
Sarah Bunch, City Council Representative (online)
Elvis Moya, Tourism & Hospitality Representative (online)
Andrew Prysby, Commissioner at-large
Molly Rawn, CEO; Jennifer Walker, VP of Finance, Sarah King, VP of
Marketing and Communications
I. Chair Martin called the meeting to order at 2:00 pm and declared a quorum.
II. Old Business
A. Chair Martin presented the November minutes and hearing no additions or
corrections, he stated that the minutes stood approved as presented.
III. New Business
A. 2024 Chair Nomination
Chair Martin nominated Commissioner Chrissy Sanderson as chairperson.
With no other nominations, Chair Martin called for a motion to cease
nominations which Commissioner Mike Wiederkehr made with
Commissioner Moya seconding. Chair Martin asked for a motion to
approve Commissioner Sanderson as chair of 2024 by acclimation, which
was made by Commissioner Moya and seconded by Commissioner
Wiederkehr. It was approved unanimously. With that, Chair Martin
thanked everyone and vacated the seat for Commissioner Sanderson.
B. CEO Report
1. There is no financial report as we’ve not yet received HMR collection
information from the city.
C. Marketing Report
VP of Marketing and Communications Sarah King reviewed the 2023
website stats, showing that year over year they have really grown,
especially email marketing. She remarked that we will cross reference the
top 10 user locations with Arrivalist data. Our website’s number one
referral this year is arkansasrazorbacks.com – which we’ll talk about later in
the meeting as this contract renewal is an agenda item.
King then introduced 3 members of our new advertising agency, Outright
Agency, to the commission:
Jared Schwartz, VP of Strategy & Partner, Grace Boye, Creative Director
and Anne Davis, Director of Marketing.
Stephanie Levinson, Outright’s Media Relations Manager, will be joining us
at the reception after the meeting.
King and Anne Davis then shared a high-level timeline slide and Anne
presented it to the group, ending with March being a launch of the tourism
marketing campaign.
Discussion then turned to Fayetteville Restaurant Week. King said we’ll
have 5 mini films created by UA Journalism students that will be on social
media. We will not be doing events but amplifying what restaurants are
doing.
D. Vote. Contract with IMG College, LLC.
CEO Rawn presented this sponsorship agreement. IMG College, LLC is
the organization that handles all licensing agreements concerning the
Razorbacks. We also did this last year, and as a part of our marketing
strategy, we would like to renew it. It is already in the budget for 2024 in
non-agency advertising.
Commissioner Martin made a motion to approve the contract which was
seconded from Commissioner Wiederkehr. Chair Sanderson asked for a
roll call vote with the motion passing unanimously.
E. Vote. BOK Financial Retirement Savings Plan.
CEO Rawn shared that we’ve almost completed the process to begin the
new retirement plan and today we need the commission to document two
items: that the CEO has authority to sign contracts and legal agreements
on behalf of the Fayetteville A&P and that the commission has authorized
the CEO to delegate other administrative matters to individuals named in
the attached resolution. Chair Martin asked for clarification of who FAP
employees included, and it was stated that it included employees of both
Experience Fayetteville and Fayetteville Town Center. Commissioner Moya
made the motion to adopt the attached BOKF Authorized representative
resolution and Commissioner Bunch seconded it. It was unanimously
approved via a roll call vote.
F. With no other business, Chair Sanderson asked for a motion to adjourn.
Commissioner Martin made a motion to adjourn with Commissioner Bunch
seconding it. The meeting was adjourned at 2:47pm.
Minutes submitted by Amy Stockton, Director of Operations, Experience Fayetteville
Fayetteville Advertising and Promotion Commission
CEO Updates
February 2024
Executive Summary
• Anna Claire Day will transition from part-time Event Coordinator to part-time FTC
Marketing Coordinator.
• We welcome Camille Letchford as a part-time Events Coordinator.
• Our work on the Tourism Master plan is underway! As of today members of the
commission should have received two email surveys:
- The internally focused Resilience Assessment
- The broader Stakeholder Survey
• By the time we next meet, the resident sentiment survey will be live on our website.
Additionally, representatives from Coraggio will be in Fayetteville in early March for
public input sessions, which will be formally announced soon.
• A 2023 recap of Community Incentive Funding is attached. I am very proud of th e
process my team has built!
Tourism Activity
• We secured the bid to host the 2024 NICA (National Interscholastic Cycling
Association) Conference, taking place June 19-22, with an estimated attendance of
200-250 people.
• Once again hosting Touge Con event, September 6th & 7th. This event received
National attention and has grown to 1,500+ people in attendance.
• We sponsored Frost Fest on Saturday, February 3rd, at $1,500. The economic impact
figures are pending.
• Fayetteville hosted the AR Black Music and Film Festival, Friday and Saturday
February 9th & 10Th with an incentive of $2,500 and an estimated economic impact
of $25,000 which does include blocks at several Fayetteville properties .
• We welcomed 322 people in the Visitors Center in January (22% increase) from
France, Ireland, Spain, and Australia.
• VC had $2,456 in sales in January, a 154% increase over last January.
Fayetteville Town Center
• The Fayetteville Town Center has successfully hosted twenty events since our last
meeting.
• We are pleased to announce that we now have two ServSafe certified staff
members: Monica Jannati and Madison Hurley.
Marketing
• Fayetteville Restaurant Week is shaping up. Be sure to book your reservations and
make plans soon! FRW starts this Sunday, February 25 and runs through Saturday,
March 2.
• As of last Monday, there were 76 participating restaurants.
• The media and PR plan includes ads and interviews on five radio stations as well
as programmatic digital ads.
• Sarah King appeared on Later with Jason Suel along with Maudie Schmitt of Cafe
Rue Orleans and Ted Hammig, who performed the FRW jingle with the house
band.
• Multi-page features appeared in Citiscapes and the new Fayetteville
Lifestyle magazines.
Downtown Fayetteville Coalition
• As a result of our work with Public Sphere Project, the DFC board has finalized its
strategic framework. This plan will be unveiled at the organization’s first annual
meeting to be held in April, with details to follow.
• Kelly has rolled out a new process for notifying downtown businesses of upcoming
special event permits filed.
• DFC has announced a date for the Inaugural Strawberry Festival on May 19th.
Looking Forward
March meeting, Monday March, 25th
2023 Community Event Support
Experience Fayetteville provides funding to events that give Fayetteville unique
flavor,often closing funding gaps to enable emerging events to get o the ground.
Experience Fayetteville Community Event funding usually ranges from $500 to
$2500.Last year:
●26 events were funded
●Of those 26,16 were new events (indicated by ✨)
●Total Community Event Funding:$57,386
●Frost Fest Outdoor Craft Beer Festival
●Black-Owned Business Expo ✨(first time in Fayetteville)
●Smithsonian Folklife Preview -a project of Music Education Initiative ✨
●AMMPlify Festival -celebrating emerging musicians,artists,and writers ✨
●Her Set,Her Sound Festival
●Art Ventures NWA Out Loud House Party ✨
●Northwest Arkansas Pride Festival
●Juneteenth Celebration
●A two-day concert by Gar Hole Records,a Fayetteville music label
●Pottery on the Patio by Community Creative Center
●Mount Sequoyah 100th Anniversary Celebration ✨
●Botanical Garden of the Ozarks International Festival
●Hopout DIY concert -an under-21 collective ✨
●Maker Faire at Fayetteville Public Library
●Artists Receptions at The Art Gallery at NWA Mall ✨
●NWA Martin Luther King,Jr.Recommitment Celebration
●Arkansas Country Blues and Stringband Festival ✨
●Falltoberfest on Dickson Street ✨
●Mitzvah Holiday Market ✨
●Fruitcake Holiday Market ✨
●FayetteVINTAGE Winter Market ✨
●Sweaterfest -Arkansas hardcore concert ✨
●Symphony of Northwest Arkansas Tone Painting -Live painting accompanied
by music ✨
●Santa Drop (from an airplane!)at Arkansas Air &Military Museum
●Duke Deuce Concert -Memphis-style Crunk genre ✨
●Wowza Ball -Wearable art competition ✨
$381,681
Monthly A&P Tax Collections 2023**
8.00%
58.30%
4.58%
15.09%
1.89%
7.48%
6.66%
4.54%
-0.49%
-2.07%
-2.07%
10.42%
% change
from 2022
Previous YTD (Jan-Dec) HMR A&P Tax Collection Totals
2019
$3,701,187
2020
$3,008,949
2021
$3,998,903
2022
$4,659,525
2023
$4,994,999
$27,985
Prior Dues Collected
$431,487
Total HMR Collected
December Collection
(November Activity)
$58,202
Lodging
$345,300
Restaurant
+
4.12%-18.70%32.90%16.52%7.20%
% change over previous year
** This represents one half of the total HMR collections. The other half supports the Parks and Recreation department.
$356,842
$414,154
$435,355
$436,973
$440,113
$411,199
$379,564
$405,720
$461,660
$440,250
$431,487
Memo
To: Molly Rawn, CEO, Experience Fayetteville
Fayetteville Advertising & Promotion Commissioners
From: Jennifer Walker, VP Finance, Experience Fayetteville
Date: January 30, 2024
Re: Financial Statements – December 2023
This packet contains Experience Fayetteville Financial Statements for the month ended
December 31, 2023. The following reports are included in the packet:
Summary P&L Financials for month ended December 31, 2023
Balance Sheet for month ended December 31, 2023
Target Budget December – 100%
Revenue target 100% of budget or higher by the end of December 2023.
Expenditures target 100% or lower at December 2023.
Total Revenue YTD: $5,898,297 or 104%; We are 4% above target.
Tax Receipts - $4,994,998 (1% above budget ytd)
Town Center - $ 669,980 (over budget by 29% ytd)
Other - $233,319
Total Operating Expenditure YTD: $5,112,211 or 96%; this is 4% under budget.
EF Main - $4,129,412
Town Center - $982,799
HMR tax – YTD December Collections (November activity) are now 0.8% above the
seasonally adjusted budget.
Operating Net Income is $786,086 year to date.
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year-to-Date @ December 31, 2023
Actual Budget Over/(Under)
Budget % of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue 4,994,998 4,960,000 34,998 100.7%
Rental Revenue 628,599 485,500 143,099 129.5%
Event Revenue 57,777 56,500 1,277 102.3%
Visitor Center Store Revenue 46,118 40,700 5,418 113.3%
Parking Revenue 29,821 26,000 3,821 114.7%
Advertising Revenue 4,255 3,500 755 121.6%
Grant/Other Revenue 87,100 83,000 4,100 104.9%
Interest and Investment Revenue 49,630 25,050 24,580 198.1%
Total Revenue 5,898,297 5,680,250 218,047 103.8%
Expenses
Operating Expenses
Rental Expenses 93,181 208,000 (114,819) 44.8%
Event Expenses 126,530 140,600 (14,070) 90.0%
Visitor Center & Museum Store 25,357 34,700 (9,343) 73.1%
Personnel 1,890,693 1,968,562 (77,869) 96.0%
Sales & Marketing 1,225,972 1,218,423 7,549 100.6%
Office and Administrative 803,866 825,756 (21,890) 97.3%
Bond Payments 697,800 700,000 (2,200) 99.7%
Contribution to Capital Reserves - - - 0.0%
Other grants 203,813 223,000 (19,187) 91.4%
Total Operating Expenses 5,112,211 5,319,041 (206,830) 96.1%
Net Operating Income/(Loss) 786,086 361,209 424,877 217.6%
Other Income
Unrealized Gain/(Loss) on Investments (12,928) 0.0%
Other Expenses
FFE & Improvements 380,765 921,000 (540,235) 41.3%
Depreciation Expense 190,210 0.0%
Cost of Goods Sold (4,244) 0.0%
Net Income/(Loss) (without CX Grants)206,426 (559,791) 779,146 -36.9%
CONSOLIDATED
Year-to-Date
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year-to-Date @ December 31, 2023
Actual Budget Over/(Under)
Budget % of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue 4,994,998 4,960,000 34,998 100.7%
Rental and Event Revenue 46,336 49,000 (2,664) 94.6%
Visitor Center Store Revenue 46,118 40,700 5,418 113.3%
Advertising Revenue 4,255 3,500 755 121.6%
Grant & Other Revenue 87,100 83,000 4,100 104.9%
Interest and Investment Revenue 49,510 25,000 24,510 198.0%
Total Revenue 5,228,316 5,161,200 67,116 101.3%
Expenses
Operating Expenses
Event Expenses 110,989 110,600 389 100.4%
Visitor Center & Museum Store 25,357 34,700 (9,343) 73.1%
Personnel 1,340,590 1,399,952 (59,362) 95.8%
Sales & Marketing 1,207,675 1,191,902 15,773 101.3%
Office and Administrative 498,188 498,257 (69) 100.0%
Bond Payments 697,800 700,000 (2,200) 99.7%
Contribution to Capital Reserve - - - 0.0%
Other Grants 203,813 223,000 (19,187) 91.4%
Total Operating Expenses 4,129,412 4,158,411 (28,999) 99.3%
Net Income/(Loss) Before Other Revenue and Expenses 1,098,904 1,002,789 96,115 109.6%
Other Income
Unrealized Gain/(Loss) on Investments (12,928) - (12,928) 0.0%
Other Expenses
FFE & Improvements 26,052 545,000 (518,948) 4.8%
Depreciation Expense 102,439
Cost of Goods Sold (4,244)
Net Income/(Loss) 961,730 457,789 516,869 210.1%
Experience Fayetteville
Year-to-Date
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year-to-Date @ December 31, 2023
Actual Budget Over/(Under)
Budget % of Budget
Revenue
Rental Revenue 628,599 485,500 143,099 129.5%
Event Revenue 11,441 7,500 3,941 152.6%
Parking Revenue 29,821 26,000 3,821 114.7%
Interest and Investment Revenue 120 50 70 240.0%
Total Revenue 669,981 519,050 150,931 129.1%
Expenses
Operating Expenses
Rental Expenses 93,181 208,000 (114,819) 44.8%
Event Expenses 15,540 30,000 (14,460) 51.8%
Personnel 550,103 568,610 (18,507) 96.7%
Sales & Marketing 18,297 26,521 (8,224) 69.0%
Office and Administrative 305,678 327,499 (21,821) 93.3%
Total Operating Expenses 982,799 1,160,630 (177,831) 84.7%
Net Income/(Loss) Before Other Revenue and Expenses (312,818) (641,580) 328,762 48.8%
Other Expenses
FFE & Improvements 354,714 376,000 (21,286) 5.7%
Depreciation Expense 87,771 0.0%
Net Income/(Loss) (755,303) (1,017,580) 262,277 74.2%
Town Center
Year-to-Date
ASSETS
Current Assets
Cash 3,867,134
Investments 1,215,284
Accounts Receivable 560,564
Prepaid Expenses 58,321
Deposits 28,369
Inventory Asset 32,452
Total Current Assets 5,762,125
Other Assets
Capital Assets
Furniture & Fixtures 121,169
Equipment 723,463
EF/CVB Building 940,410
EF/CVB Land 198,621
Building Additions 1,142,641
Walker-Stone House 1,167,218
Vehicles 122,860
Construction in Progress 104,548
Accumulated Depreciation (1,716,579)
Total Other Assets 2,804,350
TOTAL ASSETS 8,566,475
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable 257,710
Unearned Revenue 212,150
Total Liabilities 469,860
Equity
Unreserved Fund Balance 5,687,030
Operating Reserve 1,000,000
Capital Reserve 1,100,000
Temporarily Restricted Funds 126,817
Net Revenue
Gain/(Loss) on Investments (12,928)
Net Revenue without Cyclocross 219,355
Net Revenue for Cyclocross (23,659) 182,768
Total Equity 8,096,615
TOTAL LIABILITIES AND EQUITY 8,566,475
Fayetteville A&P Commission
Balance Sheet
As of December 31, 2023
$382,586
Monthly A&P Tax Collections 2024**
0.24%
% change
from 2023
Previous YTD (Jan) HMR A&P Tax Collection Totals
2010
$293,628
2021
$263,665
2022
$ 353,407
2023
$381,681
2024
$382,586
$16,313
Prior Dues Collected
$382,586
Total HMR Collected
January Collection
(December Activity)
$37,979
Lodging
$328,293
Restaurant
+
6.67%-10.20%34.04%8.00%0.24%
% change over previous year
** This represents one half of the total HMR collections. The other half supports the Parks and Recreation department.
Memo
To: Molly Rawn, CEO, Experience Fayetteville
Fayetteville Advertising & Promotion Commissioners
From: Jennifer Walker, VP Finance, Experience Fayetteville
Date: February 14, 2024
Re: Financial Statements – January 2024
This packet contains Experience Fayetteville Financial Statements for the month ended
January 31, 2024. The following reports are included in the packet:
Summary P&L Financials for month ended January 31, 2024
Balance Sheet for month ended January 31, 2024
Target Budget January – 8%
Revenue target 8% of budget or higher by the end of January 2024.
Expenditures target 8% or lower at January 2024.
Total Revenue YTD: $400,523 or 6.5%; We are 1% below target.
Tax Receipts - $382,586 (1% below budget ytd)
Town Center - $ 11,009 (6% below budget ytd)
Other - $6,928
Total Operating Expenditure YTD: $443,462 or 7%; this is 1% under budget.
EF Main - $381,167
Town Center - $62,294
HMR tax – YTD January Collections (December activity) are 2.8% below the
seasonally adjusted budget.
Operating Net Loss is ($42,938) year to date.
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year-to-Date @ January 31, 2024
Actual Budget Over/(Under)
Budget % of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue 382,586 5,208,000 (4,825,414) 7.3%
Rental Revenue 10,631 578,340 (567,709) 1.8%
Event Revenue 367 69,000 (68,633) 0.5%
Visitor Center Store Revenue 1,463 46,500 (45,037) 3.1%
Parking Revenue - 27,000 (27,000) 0.0%
Advertising Revenue 250 3,500 (3,250) 7.1%
Grant/Other Revenue - 210,000 (210,000) 0.0%
Interest and Investment Revenue 5,227 25,100 (19,873) 20.8%
Total Revenue 400,523 6,167,440 (5,766,917) 6.5%
Expenses
Operating Expenses
Rental Expenses 207 231,500 (231,293) 0.1%
Event Expenses 775 124,550 (123,775) 0.6%
Visitor Center & Museum Store 6,276 53,619 (47,343) 11.7%
Personnel 116,076 2,085,144 (1,969,068) 5.6%
Sales & Marketing 191,627 1,530,042 (1,338,415) 12.5%
Office and Administrative 63,296 862,617 (799,321) 7.3%
Bond Payments 58,150 700,000 (641,850) 8.3%
Contribution to Capital Reserves - 100,000 (100,000) 0.0%
Other Tourism Support - Community, Art Court, DFC 7,055 311,500 (304,445) 2.3%
TheatreSquared Contribution - 200,000 (200,000) 0.0%
Total Operating Expenses 443,462 6,198,972 (5,755,511) 7.2%
Net Operating Income/(Loss) (42,938) (31,532) (11,406) 136.2%
Other Income
Unrealized Gain/(Loss) on Investments (421,165) 0.0%
Other Expenses
FFE & Improvements 12,649 971,000 (958,351) 1.3%
Depreciation Expense 18,528 0.0%
Cost of Goods Sold (872) 0.0%
Net Income/(Loss) (without CX Grants)(494,409) (1,002,532) 929,288 49.3%
CONSOLIDATED
Year-to-Date
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year-to-Date @ January 31, 2024
Actual Budget Over/(Under)
Budget % of Budget
Revenue
Hotel, Motel, Restaurant Taxes Revenue 382,586 5,208,000 (4,825,414) 7.3%
Rental and Event Revenue - 55,350 (55,350) 0.0%
Visitor Center Store Revenue 1,463 46,500 (45,037) 3.1%
Advertising Revenue 250 3,500 (3,250) 7.1%
Grant & Other Revenue - 210,000 (210,000) 0.0%
Interest and Investment Revenue 5,216 25,000 (19,784) 20.9%
Total Revenue 389,515 5,548,350 (5,158,835) 7.0%
Expenses
Operating Expenses
Event Expenses - 89,550 (89,550) 0.0%
Visitor Center & Museum Store 6,276 53,619 (47,343) 11.7%
Personnel 81,741 1,412,532 (1,330,791) 5.8%
Sales & Marketing 190,544 1,494,392 (1,303,848) 12.8%
Office and Administrative 37,401 489,312 (451,911) 7.6%
Bond Payments 58,150 700,000 (641,850) 8.3%
Contribution to Capital Reserve - 100,000 (100,000) 0.0%
Other Tourism Support - Community, Art Court, DFC 7,055 311,500 (304,445) 2.3%
TheatreSquared Contribution - 200,000 (200,000) 0.0%
Total Operating Expenses 381,167 4,850,905 (4,469,738) 7.9%
Net Income/(Loss) Before Other Revenue and Expenses 8,347 697,445 (689,098) 1.2%
Other Income
Unrealized Gain/(Loss) on Investments (421,165) - (421,165) 0.0%
Other Expenses
FFE & Improvements 12,649 511,000 (498,351) 2.5%
Depreciation Expense 8,594
Cost of Goods Sold (872)
Net Income/(Loss) (433,190) 186,445 (198,469) -232.3%
Experience Fayetteville
Year-to-Date
Modified Accrual Fayetteville A and P Commission
Statement of Budget, Revenue and Expense
Year-to-Date @ January 31, 2024
Actual Budget Over/(Under)
Budget % of Budget
Revenue
Rental Revenue 10,631 578,340 (567,709) 1.8%
Event Revenue 367 13,650 (13,283) 2.7%
Parking Revenue - 27,000 (27,000) 0.0%
Interest and Investment Revenue 11 100 (89) 10.7%
Total Revenue 11,009 619,090 (608,081) 1.8%
Expenses
Operating Expenses
Rental Expenses 207 231,500 (231,293) 0.1%
Event Expenses 775 35,000 (34,225) 2.2%
Personnel 34,335 672,612 (638,277) 5.1%
Sales & Marketing 1,083 35,650 (34,568) 3.0%
Office and Administrative 25,895 373,305 (347,410) 6.9%
Total Operating Expenses 62,294 1,348,067 (1,285,773) 4.6%
Net Income/(Loss) Before Other Revenue and Expenses (51,286) (728,977) 677,691 7.0%
Other Expenses
FFE & Improvements - 460,000 (460,000) 100.0%
Depreciation Expense 9,933 0.0%
Net Income/(Loss) (61,219) (1,188,977) 1,127,758 5.1%
Town Center
Year-to-Date
ASSETS
Current Assets
Cash 3,695,780
Investments 794,119
Accounts Receivable 583,000
Prepaid Expenses 29,757
Deposits 28,369
Inventory Asset 24,643
Total Current Assets 5,155,668
Other Assets
Capital Assets
Furniture & Fixtures 169,248
Equipment 756,009
EF/CVB Building 940,410
EF/CVB Land 198,621
Building Additions 1,451,322
Walker-Stone House 1,174,064
Vehicles 122,860
Construction in Progress 19,205
Accumulated Depreciation (1,709,462)
Total Other Assets 3,122,278
TOTAL ASSETS 8,277,946
LIABILITIES AND EQUITY
Current Liabilities
Accounts Payable 71,596
Unearned Revenue 305,073
Total Liabilities 376,669
Equity
Unreserved Fund Balance 6,167,617
Operating Reserve 1,000,000
Capital Reserve 1,100,000
Temporarily Restricted Funds 126,817
Net Revenue
Gain/(Loss) on Investments (421,165)
Net Revenue without Cyclocross (73,244)
Net Revenue for Cyclocross 1,251 (493,157)
Total Equity 7,901,277
TOTAL LIABILITIES AND EQUITY 8,277,946
Fayetteville A&P Commission
Balance Sheet
As of January 31, 2024
Memo
To:
Molly Rawn, CEO, Fayetteville Advertising & Promotion Commission
Fayetteville Advertising & Promotion Commissioners
From: Jennifer Walker, VP Finance, Fayetteville Advertising and Promotion
Commission
Date: February 15, 2024
Re: 2023 Financial Audit Engagement Letter with Forvis
Background:
Fayetteville Advertising and Promotion Commission contracted with Forvis, LLP to
perform audit services for the years ending 2018 - 2022.
The fee for auditing the 2023 financials is estimated to be $29,500. The 2024
operating budget allocates $30,000 for audit and accounting services.
The 2023 engagement letter is attached for reference.
Staff Recommendation: A vote to authorize CEO Molly Rawn to execute an
engagement letter with Forvis, LLP for 2023 audit services estimated at $30,000.
January 15, 2024
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 FORVIS, 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 an Unmatched
Client Experience.2F
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 Addendum3F
Summary Scope of Services
As described in the attached Scope of Services, our services will include the following:4F
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
Audit Services for the year ended December 31, 2023
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 a management-level individual(s) to be responsible and accountable
for overseeing the performance of nonattest services, and you have determined this individual is qualified
to conduct such oversight.
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
January 15, 2024
Page 2
Engagement Fees
The fee for our services will be $29,500 for the audit services including the fee for implementing GASB 96.
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 certain technology and administrative costs associated with
our services.
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.
Our timely completion of services and the fees thereon 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 additional billings, untimely filings, or inability to meet other
deadlines.
Assistance with New Standards6F
Assistance and additional time as a result of the adoption of the following new 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.
Governmental Accounting Standards Board Statement No. 96, Subscription-Based Information
Technology Arrangements, is effective for fiscal years beginning after June 15, 2022. Early application is
encouraged.
Statement No. 96 addresses the accounting for the costs related to cloud computing agreements. Under
this Statement, a government reports a subscription asset and subscription liability for agreements meeting
the definition of a subscription-based information technology arrangement (SBITA) and to disclose essential
information about the arrangement. We can assist you with the adoption by providing services which may
include, but are not limited to:
Assessing your readiness by assisting with the evaluation of your:
o Current controls and policies
o Current internal resources and system capabilities
Assisting with changes required to adopt Statement No. 96, including:
o
o Recommending enhancements to existing controls and policies or suggesting new controls
and policies to address Statement No. 96
o Documenting any changes from your previous IT subscription recognition and reporting
methods
o Drafting the required disclosures
The time it will take to perform the above assistance and our additional audit procedures relating to the
adoption of the Statement, and any time to assist you with the adoption, may be minimized to the extent
your personnel will be available to provide timely and accurate documentation and information as requested
by us.
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
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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.
FORVIS, LLP
Acknowledged and agreed to as it relates to the entire contract, including the Scope of Services and
Terms and Conditions Addendum,7F on behalf of FAYETTEVILLE ADVERTISING AND PROMOTION
COMMISSION.
BY
Molly Rawn, CEO
DATE
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
January 15, 2024
Page 4
Scope of Services – Audit Services
We will audit the regulatory basis financial statements and related disclosures, which collectively comprise
the basic financial statements for the following entity:
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION as of and for the year ended
December 31, 2023
The audit has the following broad objectives:
Obtaining reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error
Expressing an opinion on the regulatory basis financial statements prepared in accordance with
Arkansas Code Section 10-4-202
Issuing a report on your internal control over financial reporting and compliance and other matters
based on the audit of your financial statements in accordance with Government Auditing Standards
We will also provide you with the following nonattest services:17F
Preparing a draft of the financial statements and related notes
You agree to assume all management responsibilities and to oversee the nonattest services we will provide
by designating an individual possessing suitable skill, knowledge, and/or experience. You acknowledge
that nonattest services are not covered under Government Auditing Standards. You are responsible for:
Making all management decisions and performing all management functions
Evaluating the adequacy and results of the services performed
Accepting responsibility for the results of such services
Designing, implementing, and maintaining internal controls, including monitoring ongoing activities
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
PROMOTION COMMISSION
Board of Commissioners
Mr. 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
Responsibilities19F
We will conduct our audit in accordance with auditing standards generally
accepted in the United States of America (GAAS), 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
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
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Page 5
We will exercise professional judgment and maintain professional skepticism
throughout the audit.
We will identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion.
We will obtain an understanding of internal control relevant to the audit in order
to design audit procedures that are appropriate in the circumstances.
We will evaluate the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as
well as evaluate the overall presentation of the financial statements, including the
disclosures, and whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
We will also conclude, based on audit evidence obtained, whether there are
conditions or events, considered in the aggregate, that raise substantial doubt
about the entity’s ability to continue as a going concern for a reasonable period
of time.
We will identify and assess the risks of material noncompliance, whether due to
fraud or error, and design and perform audit procedures responsive to those risks.
Such procedures include examining, on a test basis, evidence regarding the
entity’s compliance with compliance requirements subject to audit and performing
such other procedures as the auditor considers necessary in the circumstances.
We are required to communicate with those charged with governance, regarding,
among other matters, the planned scope and timing of the audit and any
significant deficiencies and material weaknesses in internal control over
compliance that the auditor identified during the audit.
Limitations &
Fraud
Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit that is planned and conducted in
accordance with GAAS will always detect a material misstatement or material
noncompliance with federal award programs when it exists. Misstatements,
including omissions, can arise from fraud or error and are considered material if,
there is a substantial likelihood that, individually or in the aggregate, they would
influence the judgment made by a reasonable user based on the financial
statements. Our responsibility as auditors is limited to the period covered by our
audit and does not extend to any later periods for which we are not engaged as
auditors.
The risk of not detecting a material misstatement or material noncompliance
resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Noncompliance with compliance requirements is
considered material if there is a substantial likelihood that, individually or in the
aggregate, it would influence the judgment made by a reasonable user of the
report on compliance about the entity’s compliance with the requirements of the
federal programs as a whole.
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
January 15, 2024
Page 6
Our understanding of internal control is 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.
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 FORVIS.
Opinion Circumstances may arise in which our report may differ from its expected form
and content based on the results of our audit. Depending on the nature of these
circumstances, it may be necessary for us to modify our opinion, add an
emphasis-of-matter paragraph or other-matter paragraph(s) to our auditor’s
report, or if necessary, decline to express an opinion or withdraw from the
engagement.
If we discover conditions that may prohibit us from issuing a standard report, we
will notify you. In such circumstances, further arrangements may be necessary to
continue our engagement.
Your
Responsibilities
Management and, if applicable, those charged with governance acknowledge
and understand their responsibility for the accuracy and completeness of all
information provided and for the following:
Audit Support – to provide us with:
o Unrestricted access to persons within the entity or within components of
the entity (including management, those charged with governance, and
component auditors) from whom we determine it necessary to obtain
audit evidence
o Information of which you are aware that is relevant to the preparation and
fair presentation of the financial statements, including access to
information relevant to disclosures
o Information about events occurring or facts discovered subsequent to the
date of the financial statements, of which management may become
aware, that may affect the financial statements
o Information about any known or suspected fraud affecting the entity
involving management, employees with significant role in internal control,
and others where fraud could have a material effect on the financials
o Identification and provision of report copies of previous audits, attestation
engagements, or other studies that directly relate to the objectives of the
audit, including whether related recommendations have been
implemented
o Additional information that we may request for the purpose of the audit
Internal Control and Compliance – for the:
o Design, implementation, and maintenance of internal control relevant to
compliance with laws and regulations and the preparation and fair
presentation of financial statements that are free from material
misstatement, whether due to fraud or error
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
January 15, 2024
Page 7
o Alignment of internal control to ensure that appropriate goals and
objectives are met; that management and financial information is reliable
and properly reported; and that compliance with and identification of the
laws, regulations, contracts, grants, or agreements (including any federal
award programs) applicable to the entity’s activities is achieved
o Remedy, through timely and appropriate steps, of fraud and
noncompliance with provisions of laws, regulations, contracts, or other
agreements reported by the auditor
o Establishment and maintenance of processes to track the status and
address findings and recommendations of auditors
Accounting and Reporting – for the:
o Maintenance of adequate records, selection and application of
accounting principles, and the safeguard of assets
o Adjustment of the financial statements to correct material misstatements
and confirmation to us in the representation letter that the effects of any
uncorrected misstatements aggregated by us are immaterial, both
individually and in the aggregate, to the financial statements taken as a
whole
Preparation and fair presentation of the financial statements in
accordance 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
o Inclusion of the auditors’ report in any document containing financial
statements that indicates that such financial statements have been
audited by us
o Distribution of audit reports to any necessary parties
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
Confirmations
Required
As part of our audit process, we will request from management and, if applicable,
those charged with governance written confirmation acknowledging certain
responsibilities outlined in this contract and confirming:
The availability of this information
Certain representations made during the audit 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
Report
Government Auditing Standards require that we provide you with a copy of our
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, upon request. If you would like a copy, please request from
your engagement executive.21F
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
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Page 8
FORVIS, LLP Terms and Conditions Addendum
GENERAL
1. Overview. This addendum describes FORVIS 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 FORVIS,
LLP. For the purposes of the Terms and Conditions, any
reference to “Firm,” “We,” “Us,” or “Our” is a reference to
FORVIS, LLP (“FORVIS”), and any reference to “You” or “Your”
is a reference to the party or parties that have engaged Us to
provide services and the party or parties ultimately responsible
for payment of Our fees and costs.
BILLING, PAYMENT, & TERMINATION
2. Billing and Payment Terms. We will bill You for Our
professional fees and costs as outlined in Our contract. Unless
otherwise provided in Our contract, payment is due upon
receipt of Our billing statement. Interest will be charged on 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. All fees, charges,
and other amounts payable to FORVIS hereunder do not
include any sales, use, excise, value-added, or other applicable
taxes, tariffs, or duties, payment of which shall be Your sole
responsibility, and do not include any applicable taxes based
on FORVIS’ net income or taxes arising from the employment
or independent contractor relationship between FORVIS and
FORVIS’ personnel.
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.
3. 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 FORVIS 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 five (5) percent to cover certain technology and
administrative costs associated with Our services. Unless
terminated sooner in accordance with its terms, this
engagement shall terminate upon the completion of FORVIS’
services hereunder.
DISPUTES & DISCLAIMERS
5. 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. The mediator will be selected by agreement of the
parties. 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.
6. Indemnification. Unless disallowed by law or applicable
professional standards, You agree to hold FORVIS harmless
from any and all claims which arise from knowing
misrepresentations to FORVIS, or the intentional withholding or
concealment of information from FORVIS by Your
management or any partner, principal, shareholder, officer,
director, member, employee, agent, or assign of Yours. You
also agree to indemnify FORVIS for any claims made against
FORVIS 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.
7. 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 FORVIS
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 FORVIS 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 FORVIS’ 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
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
January 15, 2024
Page 9
willful misconduct of FORVIS or if enforcement of this provision
is disallowed by applicable law or professional standards.
9. Waiver of Certain Damages. In no event shall FORVIS 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. Choice of Law. You acknowledge and agree that any dispute
arising out of or related to this contract shall be governed by the
laws of the State of Texas, without regard to its conflict of laws
principles.
11. WAIVER OF JURY TRIAL. THE PARTIES HEREBY AGREE
NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE
OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY
JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT
SHALL NOW OR HEREAFTER EXIST WITH REGARD TO
THIS AGREEMENT, OR ANY CLAIM, COUNTERCLAIM, OR
OTHER ACTION ARISING IN CONNECTION THEREWITH.
THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN
KNOWINGLY AND VOLUNTARILY BY THE PARTIES, AND
IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH
INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT
TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE.
12. Severability. In the event that any term or provision of this
agreement shall be held to be invalid, void, or unenforceable,
then the remainder of this agreement shall not be affected, and
each such term and provision of this agreement shall be valid
and enforceable to the fullest extent permitted by law.
13. 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.
14. Disclaimer of Legal or Investment Advice. Our services do
not constitute legal or investment advice.
RECORDS, WORKPAPERS, DELIVERABLES, &
PROPRIETARY INFORMATION
15. Maintenance of Records. You agree to assume full
responsibility for maintaining Your original data and records
and that FORVIS has no responsibility to maintain this
information. You agree You will not rely on FORVIS 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 FORVIS’ servers, i.e.,
FORVIS portals used to exchange information, can be
terminated at any time and You will not rely on using this to host
Your data and records.
16. FORVIS Workpapers. Our workpapers and documentation
retained in any form of media for this engagement are the
property of FORVIS. 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, FORVIS 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.
17. Subpoenas or Other Legal Process. In the event FORVIS is
required to respond to any such subpoena, court order, or any
government regulatory inquiry or other legal process relating to
You or Your management for the production of documents
and/or testimony relative to information We obtained or
prepared incident to this or any other engagement in a matter
in which FORVIS is not a party, You shall compensate FORVIS
for all time We expend in connection with such response at
normal and customary hourly rates and to reimburse Us for all
out-of-pocket expenses incurred in regard to such response.
18. 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 any 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.
19. 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
20. 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.
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
January 15, 2024
Page 10
21. 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, “FORVIS, 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. FORVIS, LLP also has not performed any procedures
relating to this offering document.”
22. FORVIS Not a Municipal Advisor. FORVIS is not acting as
Your municipal advisor under Section 15B of the Securities
Exchange Act of 1934, as amended. As such, FORVIS 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 FORVIS.
23. FORVIS Not a Fiduciary. In providing Our attest services, We
are required by law and our professional standards to maintain
our independence from You. We take this mandate very
seriously and thus guard against impermissible relationships
which may impair the very independence which You and the
users of Our report require. As such, You should not place upon
Us special confidence that in the performance of Our attest
services We will act solely in Your interest. Therefore, You
acknowledge and agree We are not in a fiduciary relationship
with You and We have no fiduciary responsibilities to You in the
performance of Our services described herein.
TECHNOLOGY
24. 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.
25. 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 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.
26. 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
27. Cooperation. You agree to cooperate with FORVIS in the
performance of FORVIS’ services to You, including the
provision to FORVIS of reasonable facilities and timely access
to Your data, information, and personnel. You shall be
responsible for the performance of Your employees and
agents.
28. Third-Party Service Providers. FORVIS may from time to
time utilize third-party service providers, including but not
limited to domestic software processors or legal counsel, or
disclose confidential information about You to third-party
service providers in serving Your account. FORVIS maintains,
however, internal policies, procedures, and safeguards to
protect the confidentiality and security of Your information. In
addition, FORVIS 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
FORVIS sharing Your confidential information with the third-
party service provider.
29. 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. Decisions
regarding management of Your business remain the
responsibility of Your personnel at all times. Neither You nor
FORVIS shall act or represent itself, directly or by implication,
as an agent of the other or in any manner assume or create any
obligation on behalf of, or in the name of, the other.
30. Use of FORVIS Name. Any time You intend to reference
FORVIS’ firm name in any manner in any published materials,
FAYETTEVILLE ADVERTISING AND PROMOTION COMMISSION
January 15, 2024
Page 11
including on an electronic site, You agree to provide Us with
draft materials for review and approval before publishing or
posting such information.
31. Praxity. FORVIS is an independent accounting firm allowed to
use the name “Praxity” in relation to its practice. FORVIS is not
connected, however, by ownership with any other firm using the
name “Praxity.” FORVIS will be solely responsible for all work
carried out on Your behalf. In deciding to engage FORVIS, 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.
32. Entire Agreement. The contract, including this Terms and
Conditions Addendum and any other attachments or addenda,
encompasses the entire agreement between You and FORVIS
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 FORVIS.
33. 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, including, without limitation,
fire or other casualty, act of God, act of terrorism, strike or labor
dispute, war or other violence, explosion, flood or other natural
catastrophe, epidemic or pandemic, or any law, order, or
requirement of any governmental agency or authority affecting
either party, including without limitation orders incident to any
such epidemic or pandemic, lockdown orders, stay-at-home
orders, and curfews.
Memo
To: Molly Rawn, CEO, Fayetteville Advertising and Promotion Commission;
Fayetteville Advertising and Promotion Commissioners
From: Tyler Wilson, Executive Director, Fayetteville Town Center
Miletus Callahan-Barile, Facilities Manager, Fayetteville Town Center
Date: February 19, 2024
Re: Interior AV Upgrade at Fayetteville Town Center
Background:
The Fayetteville Town Center’s current AV system is in need of upgrading. The current
projectors only support standard definition and are beyond the end of their life cycle. This
limitation significantly impacts the quality of presentations and events hosted at our facility.
Commercial Audio Systems estimates the cost of this project to be $44,172.90, with all taxes
and fees included. Two additional bids were sought, but due to Commercial Audio Systems
specialization in the Crestron branded system in place and their status as the only local vendor
certified to provide the proprietary upgrade it is our recommendation that we utilize this vendor.
Recommendation:
The Facilities Manager, Executive Director, and CEO recommend that the commission accepts
the quote from Commercial Audio Systems for projector and equipment refresh with a ten
percent price contingency to the Fayetteville Town Center interior AV system due to their
experience with projects of this nature and scope.
Fayetteville A&P
Commission
Fayetteville Town Center
Projector and equipment refresh
TIPS TAPS Contract number: 200904 Audio Visual Equipment, Supplies, and Services 11/30/2023 See EDGAR Certification Doc.
Quantity Brand Model Description
3 Epson EB-PU1008 8500 Lumens Laser projector
1 Epson V12H004M08 Standard throw lens
1 Crestron DM-PSU-8 Plus POE injector to replace aging power supplys
4 CAS Labor Installation Labor
1 CAS PRG System Programming
Sub:$26,643.60
Sales Tax:$2,597.75
Total:$29,241.35
Quantity Brand Model Description
3 Epson EB-PU2010 10,000 Lumens Laser projector (Much brighter!)
1 Epson V12H004M08 Standard throw lens
1 Crestron DM-PSU-8 Plus POE injector to replace aging power supplys
4 CAS Labor Installation Labor
1 CAS PRG System Programming
Sub:$40,248.66
Sales Tax:$3,924.24
Total:$44,172.90