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Texarkana board approves one-year audit engagement with Forvis Mazar's LLP amid questions over fee increases
Summary
The Texarkana Board of Directors approved a one-year audit engagement with Forvis Mazar's LLP on May 4, 2026 (6–1). Directors raised questions about recurring fee increases, limited competition among municipal audit firms, and the breakdown of invoice items including lease/SBITA testing and a possible single-audit.
The Texarkana Board of Directors voted 6–1 on May 4 to authorize a one-year audit engagement with Forvis Mazar's LLP at a $127,000 base fee — a 3% increase from 2024 — with additional fees estimated at $8,000–$10,000 for a potential single-audit and $3,000 for lease and SBITA testing.
Director Juel, who asked that the audit engagement item be pulled for discussion, questioned the board about past payments and whether staff had pursued other firms for comparison. Juel asked whether the city knew the total paid to the firm in 2024 and urged the board to consider an RFP in future renewals.
City staff and finance officials explained that the auditors bill primarily for time on site (typically about two weeks) and for follow-up work, and that the $3,000 line item covers testing related to leases and subscription-based information-technology agreements (SBITAs). Staff also noted the single-audit threshold under federal rules recently increased to $1 million and that the city may not trigger a single-audit for the year in question.
Several directors acknowledged a limited market for municipal audit firms and that bond-related "opinion" audits — required for some financing — can make municipal engagements more expensive. One board member recounted that the firm’s work for the city started years ago at roughly $89,000, and tracked steady increases since then.
When the resolution authorizing the city manager to sign a one-year letter of engagement was called, the roll call was recorded as: Juel — yes; Smith — yes; Roberts — yes; Harris — no; Halabush — yes; Assistant Mayor Brewer — yes; Mayor Brown — yes. The resolution passed.
The resolution as read by the city attorney authorized the engagement at the amounts described above and directed the city manager to execute the letter of engagement. City staff said they would provide a breakdown of how costs are allocated between city and other entities and could return with additional procurement options if the board requests an RFP or further comparison.
