HomeMy WebLinkAboutCity of Tamarac Resolution R-2021-018 Temp. Reso. #13554
January 11, 2021
Rev. 1 — 2/16/21
• Page 1 of 5
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. 2021 Jf
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF TAMARAC, FLORIDA APPROVING THE TWO (2) YEAR
RENEWAL OPTION FOR THE AGREEMENT FOR
FINANCIAL AUDITING SERVICES AWARDED
SUBSEQUENT TO REQUEST FOR PROPOSAL #16-07R
FOR FINANCIAL AUDITING SERVICES, AND TO FURTHER
AUTHORIZE THE APPROPRIATE CITY OFFICIALS TO
EXECUTE A RENEWAL LETTER OF ENGAGEMENT
BETWEEN THE CITY OF TAMARAC AND RSM US, LLP,
FOR ANNUAL FINANCIAL AUDITING SERVICES FOR A
PERIOD OF TWO (2) YEARS FOR FISCAL YEARS ENDING
ON SEPTEMBER 30, 2021 AND SEPTEMBER 30, 2022,
RESPECTIVELY, FOR AN ANNUAL NOT TO EXCEED
COST OF $109,500 ANNUALLY FOR AN AGGREGATE
PRICE OF $219,000 OVER THE TWO (2) YEAR RENEWAL
• PERIOD; AND PROVIDING A PROVISION TO AUTHORIZE
THE CITY MANAGER OR DESIGNEE TO APPROVE THE
EXTENSION OF THE SCOPE OF SERVICES TO INCLUDE
THE AUDIT OF ANY CARES ACT PROGRAMS AT A RATE
OF $9,600 AS MAY BE REQUIRED; PROVIDING FOR
CONFLICTS; PROVIDING FOR SEVERABILITY; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City Charter section, 7.09, requires an independent annual audit
of all City accounts to be performed by a Certified Public Accountant and/or firm of such
accountants; and
WHEREAS, the City Commission of the City of Tamarac approved resolution R-
2016-78 at its meeting of July 13, 2016 awarding Request for Proposal #16-07R dated
March 18, 2016 to RSM US LLP for a period of five (5) years to cover services through
the end of Fiscal Year FY20, with one (1) additional two (2) year renewal option subject
111 to the satisfactory performance of RSM US LLP, a copy of said resolution is attached
hereto as Exhibit "2"; and
Temp. Reso. #13554
January 11, 2021
Rev. 1 — 2/16/21
Page 2 of 5 •
WHEREAS, the City Commission of the City of Tamarac approved resolution R-
2018-153 at its meeting of November 14, 2018, amending Resolution No. R-2016-78 by
approving an increase to the annual expenditure authority for Financial Auditing Services
awarded by the City Commission to RSM US LLP, and authorizing the City Manager to
authorize and approve renewal options and adjustments in pricing, a copy of said
resolution is attached hereto as Exhibit "3"; and
WHEREAS, the Director of Financial Services has determined that RSM US LLP
has provided satisfactory services for the provision of Financial Auditing Services for the
City, and is recommending the approval of the two (2) year renewal option provided for
under the original resolution; and
WHEREAS, RSM US LLP has prepared a Letter of Engagement dated January 7, •
2021 to cover services included for the two (2) year renewal option period for fiscal years
ending on September 30, 2021 and September 30, 2022 respectively in the amount of
$109,500 annually for an aggregate cost of$219,000 included herein as Exhibit "1"; and
WHEREAS, RSM US LLP has included as a part of the Letter of Engagement, a
fee structure to provide for the audit of Federal CARES Act Grant programs as may be
required and authorized by the City for a cost of$9,600.00 per program; and
WHEREAS, it is the recommendation of the Director of Financial Services and the
Purchasing and Contracts Manager to the City Commission that the two (2) year renewal
option as delineated in the Letter of Engagement included in Exhibit "1" herein, be
executed with RSM US, LLP, to provide financial auditing services to the City of Tamarac
for the fiscal years ending September 30, 2021 and September 30, 2022 respectively for •
an annual fee of $109,500 annually, for an aggregate two (2) year cost of $219,000; and
Temp. Reso. #13554
January 11, 2021
Rev. 1 — 2/16/21
Page 3 of 5
WHEREAS, it is the recommendation of the Director of Financial Services and the
Purchasing and Contracts Manager to the City Commission that the City Manager or
designee be authorized to approve the audit of Federal CARES Act Grant programs at a
cost of$9,600 per program as may be required by the City; and
WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be
in the best interests of the citizens and residents of the City of Tamarac to approve the
two (2) year renewal option as delineated in the Letter of Engagement included as Exhibit
"1" herein to provide financial auditing services to the City of Tamarac for the fiscal years
ending September 30, 2021 and September 30, 2022 respectively for an annual fee of
$109,500 for an aggregate two (2) year cost of $219,000; and to authorize the City
Manager or designee to approve additional services to provide audits for Federal CARES
Act Grant programs for a cost of$9,600 per program as may be required by the City.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA:
SECTION 1 : The foregoing "WHEREAS" clauses are HEREBY ratified and
confirmed as being true and correct and are hereby made a specific part of this Resolution
upon adoption hereof and all exhibits referenced and attached hereto are incorporated
herein and made a specific part of this resolution.
•
Temp. Reso. #13554
January 11, 2021
Rev. 1 — 2/16/21
Page 4 of 5 III
SECTION 2: The City Commission hereby approves the two (2) year renewal
option to provide Financial Auditing Services, and the appropriate City officials are hereby
authorized to execute the renewal Letter of Engagement attached hereto as Exhibit "1",
with RSM US, LLP to provide financial auditing services to the City of Tamarac for the
fiscal years ending September 30, 2021 and September 30, 2022 respectively, for an
annual fee of$109,500 for an aggregate two (2) year cost of$219,000.
SECTION 3: The City Commission hereby authorizes the appropriate City
Manager or designee to authorize and approve additional audit services to audit Federal
CARES Act Grant programs at a cost of $9,600 per program as may be required by the
City.
SECTION 3: All resolutions or parts of resolutions in conflict herewith are hereby III
repealed to the extent of such conflict.
SECTION 4: If any clause, section, other part or application of this Resolution is
held by any court of competent jurisdiction to be unconstitutional or invalid, in part or
application, it shall not affect the validity of the remaining portions or applications of this
Resolution.
Temp. Reso. #13554
January 11, 2021
Rev. 1 — 2/16/21
• Page 5 of 5
SECTION 5: This Resolution shall become effective immediately upon its passage
and adoption.
PASSED, ADOPTED AND APPROVED this c4' ay ofYua' , 2021.
MIC ELLE J. GOMEr
MAYOR
ATTEST
erz
IFE JO1i114 ON, CMC RECORD OF COMMISSION VOTE:
CITY CLE tK
MAYOR GOMEZ
DIST 1: COMM. BOLTON
DIST 2: COMM. GELIN `'�
DIST 3: V/M VILLALOBOS
• DIST 4: COMM. PLACKO
I HEREBY CERTIFY that I
have approved this
RESO I a to form.
HA S OTTI OT
INTERIM CITY ATTORNEY
111/
Temp. Reso.#13554- Exhibit 1
RSM
RSM US LLP
January 7, 2021 100 NE Third Avenue
Suite 300
Honorable Mayor and Members of the City Commission Fort Lauderdale. FL 33301. USA
c/o Michael C. Cernech, City Manager
o+1 954 462.6300
7525 NW 88th Avenue
F+1 954.462.4607
Tamarac, Florida 33321
vwwv.rsmus.com
Attention: Honorable Mayor and Members of the City Commission
The Objective and Scope of the Audit of the Financial Statements
You have requested that we audit the City of Tamarac, Florida's(the City) governmental activities,
business-type activities, each major fund and aggregate remaining fund information as of and for the
years ending September 30, 2021 and 2022,which collectively comprise the basic financial statements.
We are pleased to confirm our understanding of this audit engagement by means of this letter. Our
acceptance of this engagement is subject to our satisfactorily completing our normal engagement
continuance procedures. We will notify you promptly if we become aware of anything during our annual
• re-evaluation and continuance procedures that results in our not being able to continue this engagement.
We will also perform the audit of the City as of September 30, 2021 and 2022 so as to satisfy the audit
requirements imposed by the Single Audit Act and Subpart F of Title 2 U.S. Code of Federal Regulations
(CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards(Uniform Guidance), the Florida Single Audit Act and Chapter 10.550, Rules of the
Auditor General of the State of Florida.
The Responsibilities of the Auditor
RSM will conduct our audits in accordance with auditing standards generally accepted in the United
States of America (GAAS); Government Auditing Standards issued by the Comptroller General of the
United States (GAS); the provisions of the Single Audit Act; Subpart F of Title 2 U.S. CFR Part 200,
Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance); the U.S. Office of Management and Budget's (OMB) Compliance Supplement
Chapter 11.45, Florida Statutes Section 218.39 Florida Statutes, and Chapter 10.550, Rules of the
Auditor General of the State of Florida.
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City of Tamarac, Florida
January 7, 2021 •
Page 3
Those standards, supplements and rules require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.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.
Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an
unavoidable risk that some material misstatements may not be detected exists, even though the audit is
properly planned and performed in accordance with GAAS. Also, an audit is not designed to detect errors
or fraud that are immaterial to the financial statements. The determination of abuse is subjective;
therefore, GAS does not expect us to provide reasonable assurance of detecting abuse.
In making our risk assessments, we consider internal control relevant to the City's 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 the entity's internal
control. However, we will communicate to you in writing concerning any significant deficiencies or material
weaknesses in internal control relevant to the audit of the financial statements that we have identified •
during the audit.
We will also communicate to those charged with governance (a) any fraud involving senior management
and fraud (whether caused by senior management or other employees)that causes a material
misstatement of the financial statements that becomes known to us during the audit, and (b) any
instances of noncompliance with laws and regulations that we become aware of during the audit(unless
they are clearly inconsequential).
The funds that you have told us are maintained by the City and that are to be included as part of our audit
are included in the City's September 30, 2020 comprehensive annual financial report(CAFR).
We will also audit the financial statements of the following City pension trust funds included in the CAFR:
• Police Officers' Pension Trust Fund
• Firefighters Pension Trust Fund
• General Employees' Pension Trust Fund
• Elected and Appointed Officers and Non-Represented Employees Retirement Fund
The financial statements for the four pension trust funds listed above will not be issued as stand-alone
financial statements but will be included as combining statements in the notes to the financial statements.
The component units whose financial statements you have told us are to be included as part of the City's
basic financial statements are the same as those in the City's September 30, 2020 CAFR. There are no
component units that will be omitted from the basic financial statements. •
• City of Tamarac, Florida
January 7, 2021
Page 4
The federal and state financial assistance programs and awards that you have told us that the City
participates in and that are to be included as part of the single audit are listed in the September 30, 2020
single audit reports and may also include additional funding related to the Cares Act.
We are responsible for the compliance audit of major programs and projects under the Uniform Guidance
and Chapter 10.550, Rules of the Auditor General of the State of Florida, including opining on the
schedule of expenditures of federal awards and state financial assistance and the determination of major
programs and/or major state projects, the consideration of internal control over compliance, and reporting
responsibilities
Our reports on internal control will include any significant deficiencies and material weaknesses in
controls of which we become aware as a result of obtaining an understanding of internal control and
performing tests of internal control consistent with requirements of the standards and regulations
identified above. Our reports on compliance matters will address material errors, fraud, abuse, violations
of compliance obligations, and other responsibilities imposed by state and federal statutes and
regulations or assumed by contracts; and any state or federal grant, entitlement or loan program
questioned costs of which we become aware, consistent with requirements of the standards and
regulations identified above.
The Responsibilities of Management and Identification of the Applicable Financial Reporting
• Framework
Our audit will be conducted on the basis that management and, when appropriate, those charged with
governance acknowledge and understand that they have responsibility:
1. For the preparation and fair presentation of the financial statements in accordance with accounting
principles generally accepted in the United States of America;
2. To evaluate subsequent events through the date the financial statements are issued or available to
be issued, and to disclose the date through which subsequent events were evaluated in the financial
statements. Management also agrees that it will not conclude on subsequent events earlier than the
date of the management representation letter referred to below;
3. 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;
4. For establishing and maintaining effective internal control over financial reporting, and for informing
us of all significant deficiencies and material weaknesses in the design or operation of such controls
of which it has knowledge;
5. For report distribution; and
6. To provide us with:
a. Access to all information of which management is aware that is relevant to the preparation and
fair presentation of the financial statements such as records, documentation and other matters;
4110
b. Additional information that we may request from management for the purpose of the audit; and
City of Tamarac, Florida
January 7, 2021 •
Page 5
c. Unrestricted access to persons within the entity from whom we determine it necessary to obtain
audit evidence;
As part of our audit process, we will request from management and, when appropriate, those charged
with governance written confirmation concerning representations made to us in connection with the audit,
including among other items:
1. That management has fulfilled its responsibilities as set out in the terms of this letter; and
2. That it believes the effects of any uncorrected misstatements aggregated by us during the current
engagement and pertaining to the latest period presented are immaterial, both individually and in the
aggregate, to the financial statements taken as a whole.
Management is responsible for identifying and ensuring that the City complies with the laws and
regulations applicable to its activities, and for informing us about all known material violations of such
laws or regulations. In addition, management is responsible for the design and implementation of
programs and controls to prevent and detect fraud or abuse, and for informing us about all known or
suspected fraud or abuse affecting the entity involving management, employees who have significant
roles in internal control, and others where the fraud or abuse could have a material effect on the financial
statements or compliance. Management is also responsible for informing us of its knowledge of any
allegations of fraud or abuse, or suspected fraud or abuse, affecting the entity received in
communications from employees, former employees, analysts, regulators or others. •
Management is responsible for the preparation of the supplementary information in accordance with
accounting principles generally accepted in the United States of America. Management agrees to include
the auditor's report on the supplementary information in any document that contains the supplementary
information and indicates that the auditor has reported on such supplementary information. Management
also agrees to present the supplementary information with the audited financial statements or, if the
supplementary information will not be presented with audited financial statements, to make the audited
financial statements readily available to the intended users of the supplementary information no later than
the date of issuance of the supplementary information and the auditor's report thereon.
Because the audit will be performed in accordance with the Single Audit Act, Uniform Guidance and
Chapter 10.550, Rules of the Auditor General of the State of Florida, management is responsible for(a)
identifying all federal and state awards received and expended; (b) preparing the schedule of
expenditures of federaVstate awards (including notes and noncash assistance received) in accordance
with Uniform Guidance requirements and Chapter 10.550, Rules of the Auditor General of the State of
Florida; (c) internal control over compliance; (d) compliance with federal/state statutes, regulations, and
the terms and conditions of federaVstate awards; (e) making us aware of significant vendor relationships
where the vendor is responsible for program compliance; (f)following up and taking corrective action on
audit findings, including the preparation of a summary schedule of prior audit findings and a corrective
action plan; and (g) submitting the reporting package and data collection form.
The City Commission is responsible for informing us of its views about the risks of fraud or abuse within
the entity, and its knowledge of any fraud or abuse or suspected fraud or abuse affecting the entity.
•
• City of Tamarac, Florida
January 7, 2021
Page 6
You have informed us that you may issue public debt in the future and that you may include our report on
your financial statements in the offering statement. You have further informed us that you do not intend
for us to be associated with the proposed offering.
We agree that our association with any proposed offering is not necessary, providing that the City agrees
to clearly indicate that we are not associated with the contents of any such official statement or
memorandum.The City agrees that the following disclosure will be prominently displayed in any such
official statement or memorandum.
RSM US 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. RSM US LLP also has not performed any procedures relating to this official statement.
Records and Assistance
If circumstances arise relating to the condition of the City's records, the availability of appropriate audit
evidence or indications of a significant risk of material misstatement of the financial statements because
of error,fraudulent financial reporting or misappropriation of assets which, in our professional judgment,
prevent us from completing the audit or forming an opinion, we retain the unilateral right to take any
course of action permitted by professional standards, including declining to express an opinion or issue a
report, or withdrawing from the engagement.
• During the course of our engagement, we may accumulate records containing data that should be
reflected in the City's books and records. The City will determine that all such data, if necessary, will be
so reflected. The City will not expect us to maintain copies of such records in our possession.
The assistance to be supplied by City personnel, including the preparation of schedules and analyses of
accounts and dates when the information should be available to us, has been discussed and coordinated
with the Finance Director. The timely and accurate completion of this work is an essential condition to our
completion of the audit and issuance of our audit report.
Other Relevant Information
RSM US LLP may mention the City's name and provide a general description of the engagement in RSM
US LLP's client lists and marketing materials.
From time to time and depending upon the circumstances, we may use third-party service providers to
assist us in providing professional services to you. In such circumstances, it may be necessary for us to
disclose confidential client information to them. We enter into confidentiality agreements with all third-
party service providers and we are satisfied that they have appropriate procedures in place to prevent the
unauthorized release of your confidential information to others. In addition, we may utilize financial
information you have provided to us in connection with this engagement for purposes of creating
benchmarking data to be used by RSM US LLP professionals and other clients. This benchmarking data
is aggregated with data from a minimum of five other entities so that users of the data are unable to
associate the data with any single entity in the database.
111 In accordance with GAS, a copy of our most recent peer review report is enclosed for your information.
City of Tamarac, Florida
January 7, 2021 •
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Fees, Costs,and Access to Workpapers
Our fees for the financial statement and single audits (excluding CARES Act programs) described above
are as follows:
• Fiscal Year 2021 —$109,500
• Fiscal Year 2022—$109,500
Should it be necessary to extend the scope of our services to include the audit of any CARES Act
Programs,we will bill for those additional services at a rate of$9,600 per program.We will contact you to
discuss any additional services before proceeding with any work.
Our fees are based upon the value of the services performed and the time required by the individuals
assigned to the engagement which includes directly billed expenses, including report processing, travel,
and fees for services from other professionals, as well as a charge of 5% percent of fees for all other
expenses, including indirect administrative expenses such as technology, research and library databases,
communications, photocopying, postage and clerical assistance. Our fee estimate and completion of our
work are based upon the following criteria:
1. Anticipated cooperation from City personnel. •
2. Timely responses to our inquiries.
3. Timely completion and delivery of client assistance requests.
4. Timely communication of all significant accounting and financial reporting matters.
5. The assumption that unexpected circumstances will not be encountered during the engagement.
Our professional standards require that we perform certain additional procedures, on current and
previous years' engagements, whenever a partner or professional employee leaves the firm and is
subsequently employed by or associated with a client in a key position. Accordingly, the City agrees it will
compensate RSM US LLP for any additional costs incurred as a result of the City's employment of a
partner or professional employee of RSM US LLP.
Review of audit documentation by a successor auditor or as part of due diligence will be agreed to,
accounted for and billed separately.
In the event we are requested or authorized by the City or are required by government regulation,
subpoena or other legal process to produce our documents or our personnel as witnesses with respect to
our engagement for the City, the City will, so long as we are not a party to the proceeding in which the
information is sought, reimburse us for our professional time and expenses, as well as the fees and
expenses of our counsel, incurred in responding to such requests.
The audit documentation for this engagement is the property of RSM US LLP and constitutes confidential •
information. However, you acknowledge and grant your assent that representatives of the cognizant or
City of Tamarac, Florida
January 7, 2021
Page 8
oversight agency or their designee, other government audit staffs, and the U.S. Government
Accountability Office shall have access to the audit documentation upon their request and that we shall
maintain the audit documentation for a period of at least three years after the date of the report, or for a
longer period if we are requested to do so by the cognizant or oversight agency. Access to requested
documentation will be provided under the supervision of RSM US LLP audit personnel and at a location
designated by our firm.
You have informed us that you intend to prepare a comprehensive annual financial report (CAFR) and
submit it for evaluation by the Government Finance Officers Association's Certificate of Achievement for
Excellence in Financial Reporting Program. Our association with the CAFR is to consist of reviewing the
CAFR and providing recommendations as appropriate.
Termination
Your failure to make full payment of any and all undisputed amounts invoiced in a timely manner
constitutes a material breach for which we may refuse to provide deliverables and/or, upon written notice,
suspend or terminate our services under this arrangement letter. We will not be liable to you for any
resulting loss, damage or expense connected with the suspension or termination of our services due to
your failure to make full payment of undisputed amounts invoiced in a timely manner.
• In the event you terminate this engagement, you will pay us for all services rendered (including
deliverables and products delivered), expenses incurred, and noncancelable commitments made by us
on your behalf through the effective date of termination.
We will not be responsible for any delay or failure in our performance resulting from acts beyond our
reasonable control or unforeseen or unexpected circumstances, such as, but not limited to, acts of God,
government or war, riots or strikes, disasters, fires, floods, epidemics, pandemics or outbreaks of
communicable disease, cyberattacks, and internet or other system or network outages. At your option,
you may terminate this arrangement letter where our services are delayed more than 120 days; however,
you are not excused from paying us for all amounts owed for services rendered and deliverables provided
prior to the termination of this arrangement letter.
When an engagement has been suspended at the request of management or those charged with
governance and work on that engagement has not recommenced within 120 days of the request to
suspend our work, we may, at our sole discretion, terminate this arrangement letter without further
obligation to you. Resumption of our work following termination may be subject to our client acceptance
procedures and, if resumed, will require additional procedures not contemplated in this arrangement
letter. Accordingly, the scope, timing and fee arrangement discussed in this arrangement letter will no
longer apply. In order for us to recommence work, the execution of a new arrangement letter will be
required.
We may terminate this arrangement letter upon written notice if: (i)we determine that our continued
performance would result in a violation of law, regulatory requirements, applicable professional or ethical
110 standards, or our client acceptance or retention standards.
City of Tamarac, Florida
January 7, 2021 •
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Indemnification and Claim Resolution
Because RSM US LLP will rely on the City and its management and City Commission to discharge the
foregoing responsibilities, The City holds harmless and releases RSM US LLP and its partners and
employees from all claims, liabilities, losses and costs arising in circumstances where there has been a
knowing misrepresentation by a member of the City's management that has caused, in any respect, RSM
US LLP's breach of contract or negligence.
The City and RSM US LLP agree that no claim arising out of services rendered pursuant to this
arrangement letter shall be filed more than the earlier of two years after the date of the audit report issued
by RSM US LLP or the date of this arrangement letter if no report has been issued. In no event shall
either party be liable to the other for claims of punitive, consequential, special, or indirect damages. RSM
US LLP's liability for all claims, damages and costs of the City arising from this engagement is limited to
the amount of fees paid by the City to RSM US LLP for the services rendered under this arrangement
letter.
These provisions shall survive the termination of this arrangement for services.
Information Security-Miscellaneous Terms
RSM US LLP is committed to the safe and confidential treatment of the City's proprietary information.
RSM US LLP is required to maintain the confidential treatment of client information in accordance with •
relevant industry professional standards which govern the provision of services described herein. The
City agrees that it will not provide RSM US LLP with any unencrypted electronic confidential or proprietary
information, and the parties agree to utilize commercially reasonable measures to maintain the
confidentially of City information, including the use of Collaborate sites to ensure the safe transfer of data
between the parties.
Reporting
We will issue a written report upon completion of our audit of the City's financial statements. Our report
will be addressed to the City Commission. 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.
In addition to our report on the City's financial statements, we will also issue the following types of reports:
1. A report on the fairness of the presentation of the City's schedule of expenditures of federal awards
and state financial assistance for the years ended;
2. Reports on internal control related to the financial statements and major programs and projects.
These reports will describe the scope of testing of internal control and the results of our tests of
internal control;
3. Reports on compliance with laws, regulations, and the provisions of contracts or grant agreements.
We will report on any noncompliance that could have a material effect on the financial statements and •
any noncompliance that could have a material effect, as defined by Subpart F of Title 2 U.S. CFR
• City of Tamarac, Florida
January 7, 2021
Page 10
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards, and the Florida Single Audit Act, on each major program and project;
4. An accompanying schedule of findings and questioned costs;
5. A management letter in accordance with the Rules of the Auditor General of the State of Florida;
6. Independent auditor's report on an examination conducted in accordance with AICPA Professional
Standards,AT-C Section 315, regarding compliance requirements in accordance with Chapter
10.800, Rules of the Auditor General.
Management acknowledges its responsibility for the timely and accurate completion of the Data
Collection Form and the filing of the single audit reporting package with the Federal Audit Clearinghouse.
This arrangement letter constitute the complete and exclusive statement of agreement between RSM and
the City, superseding all proposals, oral or written, and all other communications with respect to the terms
of the engagement between the parties.
Electronic Signatures and Counterparts
Each party hereto agrees that any electronic signature of a party to this agreement or any electronic
signature to a document contemplated hereby(including any representation letter) is intended to
authenticate such writing and shall be as valid, and have the same force and effect, as a manual
• signature.Any such electronically signed document shall be deemed (i)to be"written"or"in writing,"(ii)
to have been signed and (iii)to constitute a record established and maintained in the ordinary course of
business and an original written record when printed from electronic files. Each party hereto also agrees
that electronic delivery of a signature to any such document (via email or otherwise)shall be as effective
as manual delivery of a manual signature. For purposes hereof, "electronic signature" includes, but is not
limited to, (i) a scanned copy(as a"pdf'(portable document format) or other replicating image) of a
manual ink signature, (ii) an electronic copy of a traditional signature affixed to a document, (iii) a
signature incorporated into a document utilizing touchscreen capabilities or(iv) a digital signature.
This agreement may be executed in one or more counterparts, each of which shall be considered an
original instrument, but all of which shall be considered one and the same agreement. Paper copies or
"printouts," of such documents if introduced as evidence in any judicial, arbitral, mediation or
administrative proceeding,will be admissible as between the parties to the same extent and under the
same conditions as other original business records created and maintained in documentary form. Neither
party shall contest the admissibility of true and accurate copies of electronically signed documents on the
basis of the best evidence rule or as not satisfying the business records exception to the hearsay rule.
Parties' Understandings Concerning Situation around COVID-19
RSM and the City acknowledge that, at the time of the execution of this arrangement letter, federal, state
and local governments, both domestic and foreign, have restricted travel and/or the movement of their
citizens due to the ongoing and evolving situation around COVID-19. In addition, like many organizations
and companies in the United States and around the globe, RSM has restricted its employees from travel
• and onsite work,whether at a client facility or RSM facility, to protect the health of both RSM's and its
clients' employees.
City of Tamarac, Florida
January 7, 2021 •
Page 11
Accordingly, to the extent that any of the services described in this arrangement letter requires or relies
on RSM or City personnel to travel and/or perform work onsite, either at the City's or RSM's facilities,
including, but not limited to, maintaining business operations and/or IT infrastructure, RSM and Client
acknowledge and agree that the performance of such work may be delayed, significantly or indefinitely,
and thus certain services described herein may need to be rescheduled and/or suspended at either
RSM's or the City's sole discretion. RSM and the City agree to provide the other with prompt written
notice (email will be sufficient) in the event any of the services described herein will need to be
rescheduled and/or suspended. RSM and the City also acknowledge and agree that any delays or
workarounds due to the situation surrounding COVID-19 may increase the cost of the services described
herein. RSM will obtain the City's prior written approval (email will be sufficient) for any increase in the
cost of RSM services that may result from the situation surrounding COVID-19.
If all other terms of our agreement for external independent auditing services between the City and our
firm is not revised, please sign the enclosed copy.
RSM US LLP
Anil Harris •
Senior Manager
Brett Friedman
Partner
Confirm-�• •- •• - i� : .arac, Florid.
Ter
Michael C. Cernech, City Manager Date
•
• City of Tamarac, Florida
January 7, 2021
Page 12
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Temp.Reso.#13554—Exhibit 2
• Temp. Reso #12806 -June 27, 2016
Page 1 of 6
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. 2016
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF TAMARAC, FLORIDA ACCEPTING THE
RECOMMENDATION OF THE CITY OF TAMARAC AUDIT
COMMITTEE AND TO AWARD REQUEST FOR PROPOSAL
#16-07R FOR FINANCIAL AUDITING SERVICES, AND TO
FURTHER AUTHORIZE THE APPROPRIATE CITY
OFFICIALS TO EXECUTE A LEI I ER OF ENGAGEMENT
BETWEEN THE CITY OF TAMARAC AND RSM US, LLP,
FOR ANNUAL FINANCIAL AUDITING SERVICES FOR A
PERIOD OF FIVE (5)YEARS FOR FISCAL YEARS ENDING
ON SEPTEMBER 30, 2016, SEPTEMBER 30, 2017,
SEPTEMBER 30, 2018, SEPTEMBER 30, 2019 AND
SEPTEMBER 30, 2020 RESPECTIVELY, FOR AN ANNUAL
NOT TO EXCEED COST OF$103,500 FOR THE FIRST TWO
(2)YEARS,AND$106,500 FOR THE REMAINING THREE(3)
YEARS FOR AN AGGREGATE PRICE OF $526,500; WITH
THE OPTION TO RENEW FOR ONE (1)ADDITIONAL TWO
(2) YEAR PERIOD SUBJECT TO SATISFACTORY
PERFORMANCE; PROVIDING FOR CONFLICTS;
PROVIDING FOR SEVERABILITY; AND PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS,the City Charter section,7.09,states that the Commission shall provide
for an independent annual audit of all City accounts made by a Certified Public Accountant
and/or firm of such accountants; and
WHEREAS, the City Commission of the City of Tamarac approved resolution R-
2016-25 at its meeting of March 9, 2016, which established an Audit Committee for the
purpose of assisting the City Commission in selecting a qualified Auditor to conduct the
Annual Financial Audit pursuant to Section 318.391 Florida Statutes with the responsibility
to issue competitive solicitations, review solicitation responses, and make a
• recommendation to the City Commission regarding the award of an Agreement for
Temp. Reso #12806 —June 27, 2016
Page 2 of 6
Financial Auditing Services a copy of said resolution is on file with the City Clerk; and •
WHEREAS, the Audit Committee consists of the City Manager, the Assistant City
Manager, the Director of Financial Services, the Director of Community Development, the
Director of Public Services, the Director of Information Technology, and the Purchasing
and Contracts Manager, who facilitated the solicitation process; and
WHEREAS, the Audit Committee formally issued and advertised in the South
Florida Sun Sentinel, and the City's public web-site Request for Proposal #16-07R on
March 18, 2016, a copy of which on file with the City Clerk; and
WHEREAS, as a result of this solicitation, the City received seven (7) qualified
responses on April 21, 2016, including the following respondents:
• GLSC & Co., PLCC
• Grau &Associates
• HCT Certified Public Accountants and Consultants
• Keefe McCullough
• Marcum Accountants &Advisors
• Rehman Robson, LLC
• RSM US, LLP
; and,
WHEREAS, the Audit Committee evaluated and scored each proposal response,
and met in a public meeting on May 16, 2016, at which time it was determined to short-list
the top four (4) respondents, and invite them to provide oral presentations to the Audit
Committee, a copy of the Audit Committee scoring matrix is included herein as Exhibit"1";
and;
WHEREAS, on June 7, 2016, the following four (4) short-listed firms provided oral
Temp. Reso #12806 — June 27, 2016
Page 3 of 6
presentations to the Audit Committee, which are shown in rank order based on the highest
score shown first:
• RSM US, LLP
• GLSC & Co., PLCC
• Grau &Associates Marcum Accountants & Advisors
• Marcum Accountants & Advisors
; and,
WHEREAS, as a result of these oral presentations,the Audit Committee determined
the following ranking for the four proposals, a copy of the final ranking matrix is included
herein as Exhibit "2":
IPPROPOSING FIRM RANKING
RSM US, LLP 1 Place
Marcum Accountants &Advisors 2nd Place
Grau and Associates 3`d Place
GLSC & Co., PLCC • 4tfi Place
; and,
WHEREAS, it is the recommendation of the Audit Committee to the City
Commission that RFP 16-07R be awarded, and a Letter of Engagement be executed with
RSM US, LLP, the first ranked firm, to provide financial auditing services to the City of
Tamarac for the fiscal years ending September 30, 2016, September 30, 2017, September
30, 2018, September 30, 2019 and September 30, 2020, for an annual fee of$103,500 for
the first two (2) years, and a fee of $106,500 for the remaining three (3) years, for an
Temp. Reso #12806 — June 27, 2016
Page 4 of 6
aggregate five(5)year cost of$526,500,with one(1)additional two(2)year renewal option •
subject to satisfactory performance, a copy of the RSM US LLP proposal response which is
on file with the City Clerk, and the RSM US LLP executed Letter of Engagement are
included herein as Exhibit "3"; and,
WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be in
the best interests of the citizens and residents of the City of Tamarac to accept the Audit
Committee recommendation, and to award RFP#16-07R for Financial Auditing Services
and execute a Letter of Engagement with RSM US, LLP, the first ranked firm, to provide
financial auditing services to the City of Tamarac for the fiscal years ending September 30,
2016, September 30, 2017, September 30, 2018, September 30,2019 and September 30,
2020, for an annual fee of$103,500 for the first two (2) years, and a fee of$106,500 for
the remaining three (3)years, for an aggregate five (5)year cost of$526,500,with one(1)
additional two (2) year renewal option subject to satisfactory performance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA:
SECTION 1: The foregoing"WHEREAS"clauses are HEREBY ratified and
confirmed as being true and correct and are hereby made a specific part of this Resolution
upon adoption hereof and all exhibits referenced and attached hereto are incorporated
herein and made a specific part of this resolution.
SECTION 2: The City Commission hereby accepts the recommendation of
the Audit Committee, and awards Request for Proposal #16-07R for Financial Auditing
Temp. Reso #12806 — June 27, 2016
Page 5 of 6
Services, and the appropriate City officials are hereby authorized to execute a Letter or
Engagement attached hereto as Exhibit "3" with RSM US, LLP, the first ranked firm, to
provide financial auditing services to the City of Tamarac for the fiscal years ending
September 30, 2016, September 30, 2017, September 30, 2018, September 30, 2019 and
September 30, 2020, for an annual fee of$103,500 for the first two (2) years, and a fee of
$106,500 for the remaining three(3)years, for an aggregate five(5)year cost of$526,500,
with one (1) additional two (2) year renewal option subject to satisfactory performance.
SECTION 3: All resolutions or parts of resolutions in conflict herewith are
hereby repealed to the extent of such conflict.
IIPSECTION 4: If any clause, section, other part or application of this
Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in
part or application, it shall not affect the validity of the remaining portions or applications of
this Resolution.
SECTION 5: This Resolution shall become effective immediately upon its
passage and adoption.
Temp Reso #12806 — June 27, 2016
Page 6 of 6
•
PASSED, ADOPTED AND APPROVED this /3 day of , 2016.
I
/ �.tic1
DIANE GLASS
VICE MAYO
ATTEST:
PATRICIA TEU , CMC RECORD OF COMMISSION VOTE:
CITY CLERK GZ��MAYOR DRESSLER
DIST 1: COMM. BUSHNELL F
DIST 2: COMM. GOMEZ
DIST 3: V/M GLASSER
DIST 4: COMM. PLACKO
111
I HEREBY CERTIFY that I
have approved this
RESOLUTION as to form.
7A' ))t
SAIV/Alit>
L
CITY ATTORNEY
RSM
June 16, 2016 RSM us LIP
Mr. Michael C. Cemech 100 NE Third Avenue
City Manager Suite 300
City of Tamarac, Florida Fort Lauderdale,FL 33301,USA
7525 NW 88th Avenue O+1 954.462.6300
Tamarac, Florida 33321 F+1 954.462 4607
www.rsmus.com
Attention Mr. Cemech:
The Objective and Scope of the Audit of the Financial Statements
You have requested that we audit the City of Tamarac, Florida's(the City)governmental activities,
business-type activities, each major fund and the aggregate remaining fund information as of and for
each year ending September 30,2016 through 2020,which collectively comprise the basic financial
statements.We are pleased to confirm our acceptance and our understanding of this audit engagement
by means of this letter. Our acceptance of this engagement is subject to our satisfactorily completing our
normal engagement acceptance procedures. We will notify you promptly if we become aware of anything
during our acceptance procedures that results in our not being able to continue this engagement. This
letter will also provide the City with one(1) additional 2-year renewal term of the contract, based upon
satisfactory performance and mutual agreement of both parties.
• Our audits will be conducted with the objective of our expressing an opinion on the financial statements.
We will also perform the audits of the City so as to satisfy the audit requirements imposed by the Single
Audit Act and Subpart F of Title 2 U.S. Code of Federal Regulations(CFR) Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform
Guidance)and the Florida Single Audit Act for each year.
The Responsibilities of the Auditor
We will conduct our audit in accordance with auditing standards generally accepted in the United States
of America(GAAS); Government Auditing Standards issued by the Comptroller General of the United
States(GAS);the provisions of the Single Audit Act; Subpart F of Title 2 U.S. CFR Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards; the U.S.
Office of Management and Budget's(OMB) Compliance Supplement, the Florida Single Audit Act, and
guidance provided in the audit guides titled State and Local Governments, issued by the AICPA and
dated March 1, 2015.Those standards, regulations, supplements, and guides require that we plan and
pe
rform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements. The procedures selected depend on the auditors
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.
Because of the inherent limitations of an audit,together with the inherent limitations of internal control, an
unavoidable risk that some material misstatements may not be detected exists, even though the audit is
properly planned and performed in accordance with GAAS. Also, an audit is not designed to detect errors
or fraud that are immaterial to the financial statements. The determination of abuse is subjective;
therefore, GAS does not expect us to provide reasonable assurance of detecting abuse.
• THE POWER OF BEING UNDERSTOOD
AUDIT i TAX CONSULTING 1
4111
In making our risk assessments, we consider internal control relevant to the City's 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 the entity's
internal control. However,we will communicate to you in writing concerning any significant deficiencies or
material weaknesses in internal control relevant to the audit of the financial statements that we have
identified during the audit.
We will also communicate to those charged with governance(a)any fraud involving senior management
and fraud(whether caused by senior management or other employees)that causes a material
misstatement of the financial statements that becomes known to us during the audit, and(b)any
instances of noncompliance with laws and regulations that we become aware of during the audit(unless
they are clearly inconsequential).
The funds that you have told us are maintained by the City and that are to be included as part of our audit
are listed in the City's September 30, 2015 Comprehensive Annual Financial Report(CAFR), but may be
amended during the term of the contract.
We will also audit the financial statements of the following City pension trust funds included in the CAFR:
• Police Officers' Pension Trust Fund
• Firefighters Pension Trust Fund
• General Employees' Pension Trust Fund
• Elected and Appointed Officers and Non-Represented Employees
Retirement Fund •
The financial statements for the four pension trust funds listed above will not be issued as stand-alone
financial statements but will be included as combining statements in the notes to the financial statements.
The state and federal financial assistance programs and awards that you have told us that the City
participates in and that are to be included as part of the single audit are listed in the City's September 30,
2015 single audit report, but may be amended during the term of the contract. Management is
responsible for the timely completion and filing of the Federal Audit Clearinghouse Data Collection Form.
We will certify the Data Collection Form for submission, once completed by management.
Our report(s)on internal control will include any significant deficiencies and material weaknesses in
controls of which we become aware as a result of obtaining an understanding of internal control and
performing tests of internal control consistent with requirements of the standards and circulars identified
above. Our report(s)on compliance matters will address material errors,fraud, abuse, violations of
compliance obligations, and other responsibilities imposed by state and federal statutes and regulations
or assumed by contracts; and any state or federal grant, entitlement or loan program questioned costs of
which we become aware, consistent with requirements of the standards and circulars identified above.
The Responsibilities of Management and Identification of the Applicable Financial Reporting
Framework
Our audit will be conducted on the basis that management and,when appropriate,those charged with
governance acknowledges and understands that they have responsibility:
1. For the preparation and fair presentation of the financial statements in accordance with accounting
principles generally accepted in the United States of America;
2. To evaluate subsequent events through the date the financial statements are issued or available to
be issued, and to disclose the date through which subsequent events were evaluated in the financial
statements. Management also agrees that it will evaluate subsequent events through the date of the
management representation letter referred to below; •
2
•
3. 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;
4. For establishing and maintaining effective internal control over financial reporting, and for informing
us of all significant deficiencies and material weaknesses in the design or operation of such controls
of which it has knowledge;
5. For(a) making us aware of significant vendor relationships where the vendor is responsible for
program compliance, (b)following up and taking corrective action on audit findings, including the
preparation of a summary schedule of prior audit findings and a corrective action plan, and (c) report
distribution, including submitting the reporting package[s]; and
6. To provide us with:
a. Access to all information of which management is aware that is relevant to the preparation and
fair presentation of the financial statements such as records, documentation and other matters;
b. Additional information that we may request from management for the purpose of the audit;
c. Unrestricted access to persons within the entity from whom we determine it necessary to obtain
audit evidence;
d. When applicable,a summary schedule of prior audit findings for inclusion in the single audit
reporting package;and
Se. If applicable, responses to any findings reported on the schedule of findings and questioned
costs.
As part of our audit process,we will request from management and,when appropriate, those charged
with governance written confirmation concerning representations made to us in connection with the audit,
including among other items:
1. That management has fulfilled its responsibilities as set out in the terms of this letter; and
2. That it believes the effects of any uncorrected misstatements aggregated by us during the current
engagement and pertaining to the latest period presented are immaterial, both individually and in the
aggregate,to the financial statements taken as a whole.
Management is responsible for identifying and ensuring that the City complies with the laws and
regulations applicable to its activities, and for informing us about all known material violations of such
laws or regulations. In addition, management is responsible for the design and implementation of
programs and controls to prevent and detect fraud or abuse, and for informing us about all known or
suspected fraud or abuse affecting the entity involving management,employees who have significant
roles in internal control, and others where the fraud or abuse could have a material effect on the financial
statements or compliance. Management is also responsible for informing us of its knowledge of any
allegations of fraud or abuse, or suspected fraud or abuse, affecting the entity received in
communications from employees, former employees, analysts, regulators or others.
Management is responsible for the preparation of the supplementary information in accordance with
accounting principles generally accepted in the United States of America. Management agrees to include
the auditor's report on the supplementary information in any document that contains the supplementary
information and indicates that the auditor has reported on such supplementary information. Management
also agrees to present the supplementary information with the audited financial statements or, if the
supplementary information will not be presented with audited financial statements,to make the audited
financial statements readily available to the intended users of the supplementary information no later than
• the date of issuance of the supplementary information and the auditor's report thereon.
3
•
In accordance with the AICPA Auditing Standard Section AU-C 260, The Auditor's Communication With
Those Charged With Governance,we will issue a letter requesting that those charged with governance
timely communicate to us any matters they consider relevant to the audit. In response to that request,
those charged with governance are responsible for informing us of its views about the risks of fraud or
abuse within the entity, and its knowledge of any fraud or abuse or suspected fraud or abuse affecting the
entity.
The City agrees that it will not associate us with any public or private securities offering without first
obtaining our consent. Therefore, the City agrees to contact us before it includes our reports, or otherwise
makes reference to us, in any public or private securities offering.
Our association with an official statement is a matter for which separate arrangements will be necessary.
The City agrees to provide us with printer's proofs or masters of such offering documents for our review
and approval before printing, and with a copy of the final reproduced material for our approval before it is
distributed. In the event our auditor/client relationship has been terminated when the City seeks such
consent,we will be under no obligation to grant such consent or approval.
We agree that our association with any proposed offering is not necessary, providing the City agrees to
clearly indicate that we are not associated with the contents of any such official statement or
memorandum. The City agrees that the following disclosure will be prominently displayed in any such
official statement or memorandum when RSM US LLP is not associated with the public or private
securities offering:
RSM US 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. RSM US LLP also has not performed any procedures relating to this official statement.
Because RSM US LLP will rely on the City and its management and those charged with governance to
111111
discharge the foregoing responsibilities,the City agrees to release RSM US LLP and its partners and
employees from all claims, liabilities, losses and costs arising in circumstances where there has been a
knowing misrepresentation by a member of the City's management that could not otherwise have been
determined or discovered by RSM US LLP with reasonable and prudent effort required by the conduct of
this audit where such misrepresentation results in RSM US LLP's breach of contract. This provision shall
survive the termination of this arrangement for services.
Records and Assistance
If circumstances arise relating to the condition of the City's records, the availability of appropriate audit
evidence or indications of a significant risk of material misstatement of the financial statements because
of error,fraudulent financial reporting or misappropriation of assets which, in our professional judgment,
prevent us from completing the audit or forming an opinion,we retain the unilateral right to take any
course of action permitted by professional standards, including declining to express an opinion or issue a
report, or withdrawing from the engagement.
During the course of our engagement,we may accumulate records containing data that should be
reflected in the City's books and records.The City will determine that all such data, if necessary, will be
so reflected.Accordingly,the City will not expect us to maintain copies of such records in our possession.
The assistance to be supplied by City personnel, including the preparation of schedules and analyses of
accounts, has been discussed and coordinated with management. The timely and accurate completion of
this work is an essential condition to our completion of the audit and issuance of our audit report.
Other Relevant Information
RSM US LLP may mention the City's name and provide a general description of the engagement in RSM
US LLP's client lists and marketing materials.
From time to time and depending upon the circumstances, we may use third-party service providers to •
assist us in providing professional services to you. In such circumstances, it may be necessary for us to
4
•
disclose confidential client information to them.We enter into confidentiality agreements with all third-
party service providers and we are satisfied that they have appropriate procedures in place to prevent the
unauthorized release of your confidential information to others. In addition, we may utilize financial
information you have provided to us in connection with this engagement for purposes of creating
benchmarking data to be used by RSM US LLP professionals and other clients. This benchmarking data
is aggregated with data from a minimum of five other entities so that users of the data are unable to
associate the data with any single entity in the database.
In accordance with GAS, a copy of our most recent peer review report has been provided to you for your
information.
Fees,Costs,and Access to Workpapers
Our fees for the audit and accounting services described above are based upon the value of the services
performed and the time required by the individuals assigned to the engagement, plus direct expenses.
Our fee estimate and completion of our work are based upon the following criteria:
1. Anticipated cooperation from City personnel
2. Timely responses to our inquiries
3. Timely completion and delivery of client assistance requests
4. Timely communication of all significant accounting and financial reporting matters
5. The assumption that unexpected circumstances will not be encountered during the engagement
If any of the aforementioned criteria are not met, then fees may increase upon mutual agreement
• between the City and RSM US LLP. Interim billings will be submitted as work progresses and as
expenses are incurred. We will submit our final bill for these services promptly upon rendering the report.
Billings are due upon submission. The fees for the aforementioned services for each fiscal year follows:
• Fiscal Year 2016-$103,500
• Fiscal Year 2017-$103,500
• Fiscal Year 2018-$106,500
• Fiscal Year 2019-$106,500
• Fiscal Year 2020-$106,500
Our professional standards require that we perform certain additional procedures, on current and
previous years' engagements, whenever a partner or professional employee leaves the firm and is
subsequently employed by or associated with a client in a key position.Accordingly,the City agrees it will
compensate RSM US LLP for any additional costs incurred as a result of the City's employment of a
partner or professional employee of RSM US LLP.
In the event we are requested or authorized by the City or are required by government regulation,
subpoena or other legalprocess toproduce our documents or our personnel as witnesses with respect to
P 9
our engagement for the City, the City will, so long as we are not a party to the proceeding in which the
information is sought, reimburse us for our professional time and expenses, as well as the fees and
expenses of our counsel, incurred in responding to such requests.
The documentation for this engagement is the property of RSM US LLP. However, you acknowledge and
grant your assent that representatives of the cognizant or oversight agency or their designee, other
government audit staffs, and the U.S. Government Accountability Office shall have access to the audit
documentation upon their request and that we shall maintain the audit documentation for a period of at
least three years after the date of the report, or for a longer period if we are requested to do so by the
cognizant or oversight agency. Access to requested documentation will be provided under the supervision
of RSM US LLP audit personnel and at a location designated by our firm.
•
5
You have informed us that you intend to prepare a comprehensive annual financial report(CAFR)and
submit it for evaluation by the Government Finance Officers Association's (GFOA)Certificate of
Achievement for Excellence in Financial Reporting. Our association with the submission of the CAFR to
the GFOA is limited to reviewing the CAFR and helping the City resolve any reporting questions that arise
during the engagement.
Public Records
We understand that the City is a public agency subject to Chapter 119, Florida Statutes. Accordingly, we
shall comply with Florida's Public Records Law. Specifically, we agree to the following:
• We will keep and maintain public records required by the City in order to perform the service.
Upon request from the City's custodian of public records,we will provide the City with a copy of
the requested records or allow the records to be inspected or copied within a reasonable time at a
cost that does not exceed the cost provided in this chapter or as otherwise provided by law. We
will ensure that public records that are exempt or confidential and exempt from public records
disclosure requirements(i.e. audit workpapers)are not disclosed except as authorized by law for
the duration of the contract term and following completion of the contract if the contractor does
not transfer the records to the City.
• Upon completion of the contract,we will either transfer, at no cost to the City, all public records in
our possession, or keep and maintain public records required by the City to perform the service.
If we transfer all public records to the City upon completion of the contract, we shall destroy any
duplicate public records that are exempt or confidential and exempt from public records
disclosure requirements. If we determine that we will maintain public records outlined by Florida
Statutes Chapter 119, and upon completion of the contract,we agree that we shall meet all
applicable requirements for retaining public records as required by Chapter 119 of Florida
Statutes. All records stored electronically shall be provided to the City, upon request from the
City's custodian of public records in a format that is compatible with the information technology
systems of the City.
• During the term of the contract,we shall maintain all books, reports and records in accordance
with generally accepted accounting practices and standards for records directly related to this
contract. We agree to make such records available to appropriate representatives of any
regulator of the City. Contract records shall be made available during normal business hours
wherever we are holding them within Broward, Dade or Palm Beach Counties, and shall include
all books of account, reports and records relating to this contract.
We agree to the following regarding public records, as required by Florida Statute, Chapter 119:
IF WE,AS A CONTRACTOR HAVE QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119,
FLORIDA STATUTES,TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING
TO THIS CONTRACT,CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT:
CITY CLERK
7525 NW 88TH AVENUE
ROOM 101
TAMARAC, FL 33321
(954)597-3505
C ITYCLE RKOTAMA RAC.O RG
Claim Resolution
The City and RSM US LLP agree that no claim arising out of services rendered pursuant to this
agreement shall be filed more than five years after the date of the audit report issued by RSM US LLP or
the date of this arrangement letter if no report has been issued. The City waives any claim for punitive
damages. If any term or provision of this agreement is determined to be invalid or unenforceable, such
term or provision will be deemed stricken and all other terms and provisions will remain in full force and
effect. •
6
•
Reporting
We will issue a written report upon completion of our audit of the City's financial statements. Our report
will be addressed to the City. 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.
In addition to our report on the City's financial statements, we will also issue the following types of reports:
1. A report on the fairness of the presentation of the City's schedule of expenditures of federal awards
and state financial assistance for the year ending;
2. Reports on internal control related to the financial statements and major programs. These reports will
describe the scope of testing of internal control and the results of our tests of internal control;
3. Reports on compliance with laws, regulations, and the provisions of contracts or grant agreements.
We will report on any noncompliance that could have a material effect on the financial statements and
any noncompliance that could have a material effect, as defined by the State Single Audit Act,
Subpart F of Title 2 U.S. CFR Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards, and the Florida Single Audit Act, on each major program and
award; and
4. An accompanying schedule of findings and questioned costs.
This letter along with our proposal and the City's request for proposal(RFP)constitutes the complete and
exclusive statement of agreement between RSM US LLP and the City, superseding all other
communications with respect to the terms of the engagement between the parties.
Please sign and return a copy of this letter to indicate your acknowledgment of, and agreement with,the
arrangements for our audit of the financial statements, including our respective responsibilities.
RSM US LLP
--� .J-----
Brett Friedman
Engagement Partner
Confirmed on behalf of the City of Tamarac, Florida:
me, itle Date
Michael C.Oemech
City Manager
• 7
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III
System Review Report
To the Partners of
McGladrey LLP
and the National Peer Review Committee
of the American Institute of Certified
Public Accountants Peer Review Board
We have reviewed the system of quality control for the accounting and auditing practice of McGladrey
LLP(the"firm")applicable to non-SEC issuers in effect for the year ended April 30,2013. 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. As a
part of our peer review,we considered reviews by regulatory entities,if applicable,in determining the
nature and extent of our procedure& 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. Our responsibility is to express
an opinion on the design of the system of quality control and the firm's compliance therewith based on
our review. The nature,objectives,scope,limitations of and the procedures performed in a System •
Review are described in the standards at www.aicpa.orgprsummarn.
As required by the standards,engagements selected for review included engagements performed under
Government Auditing Standards,audits of employee benefit plans,audits performed under FDICIA,and
audits of carrying broker-dealers,and examinations of service organizations[Service
Organizations Control(SOC) 1 and 2 engagements].
In our opinion,the system of quality control for the accounting and auditing practice of McGladrey LLP
applicable to non-SEC issuers in effect for the year ended April 30,2013,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. McGladrey LLP has received a peer review rating of pass.
December 4,2013
Praxity:
8 111
Temp. Reso. #13554 - Exhibit 3
Temp. Reso. #13208
10/25/2018
Page 1
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. R-2018 - ,
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF TAMARAC, FLORIDA, AMENDING
RESOLUTION R-2016-78 BY APPROVING A TWO
THOUSAND DOLLAR ($2,000) INCREASE TO THE
ANNUAL EXPENDITURE AUTHORITY FOR
FINANCIAL AUDITING SERVICES AWARDED BY
THE CITY COMMISSION TO RSM US LLP TO ONE
HUNDRED FIVE THOUSAND FIVE HUNDRED
DOLLARS ($105,500) FOR YEAR TWO (2), NUNC
PRO TUNC, AND ONE HUNDRED EIGHT
THOUSAND FIVE HUNDRED DOLLARS ($108,500)
PER YEAR FOR YEARS THREE (3), FOUR (4) AND
FIVE (5) OF THE EXISTING AGREEMENT FOR AN
AMENDED AGGREGATE AMOUNT OF FIVE
HUNDRED THIRTY-FOUR THOUSAND FIVE
HUNDRED DOLLARS ($534,500); AUTHORIZING
THE CITY MANAGER TO AUTHORIZE AND
IP APPROVE ANY RENEWAL OPTIONS AND
ADJUSTMENTS IN PRICING NOT TO EXCEED TEN
THOUSAND DOLLARS ($10,000) FOR THE LIFE OF
THE AGREEMENT IN ACCORDANCE WITH THE
TERMS OF THE AGREEMENT AWARDED BY THE
CITY COMMISSION BY RESOLUTION R-2016-78;
PROVIDING FOR CONFLICTS; PROVIDING FOR
SEVERABILITY; AND PROVIDING AN EFFECTIVE
DATE.
WHEREAS, the City Charter section, 7.09, states that the Commission shall
provide for an independent annual audit of all City accounts made by a Certified
Public Accountant and/or firm of such accountants; and
WHEREAS, the City Commission of the City of Tamarac approved resolution
R-2016-78 at its meeting of July 13, 2016, awarding Request for Proposal #16-07
for Financial Auditing Services and authorizing the appropriate City Officials to
execute a Letter of Engagement with RSM US, LLP for the provision of Financial
Auditing Services to the City of Tamarac for the fiscal years ending September 30,
2016, September 30, 2017, September 30, 2018, September 30, 2019 and
Temp. Reso. #13208
10/25/2018 •
Page 2
September 30, 2020, with copies of said Resolution and Request for Proposal on
file with the City Clerk with one (1) additional two (2) year renewal option subject to
satisfactory performance and mutual agreement between the City and RSM US
LLP; and
WHEREAS, the Commission approved annual fees of$103,500 for the first
two (2) years of the Agreement, and $106,500 for the remaining three (3) years for
an aggregate five (5) year cost of$526,500; and
WHEREAS, the Letter of Engagement includes a provision that allows for an
increase in fees in the event of unexpected circumstances that may be encountered
during the engagement upon mutual agreement between the City and RSM US
LLP; and
WHEREAS, RSM US LLP has requested that the City increase its annual
fee by$2,000 to perform a required attestation engagement to determine the City's
compliance with Section 218.415, Florida Statues Investment of Public Funds as
required by Section 218.415 (22).
WHEREAS, RSM US LLP maintained the agreed upon fees of$103,500 for
the first year of the Agreement, has requested an increase in the annual fee for year
two (2), Nunc Pro Tunc, from $103,500 to $105,500, and year's three (3), four (4)
and five (5) from $106,500 to $108,500 annually for a revised aggregate change in
cost from $526,500 to $534,500, a copy of the additional Arrangement Letter is
included herein as Exhibit "1"; and
WHEREAS, The Director of Financial Services and City Manager
recommend that the City Commission approve the additional $2,000 fee Nunc Pro
Tunc for Fiscal Year 2017 audit and prospectively for years three (3), four (4) and
Temp. Reso. #13208
10/25/2018
Page 3
five (5) of the remainder of the agreement to perform the required attestation
procedures and provide an accompanying opinion for determining compliance with
Section 218.415, F.S.
WHEREAS, City staff have determined that unanticipated requirements by
the Legislature or other unanticipated requirements by other regulatory agencies
could result in aggregate changes in the contract aggregate value not to exceed a
total of$10,000; and
WHEREAS, the City Commission of the City of Tamarac, Florida deems it to
be in the best interests of the citizens and residents of the City of Tamarac to
authorize an increase in the annual fee for year two (2), Nunc Pro Tunc, from
$103,500 to $105,500, and years three (3), four (4) and five (5) of the Agreement
with RSM US, LLP from $106,500 to $108,500 annually for a revised aggregate
change in cost from $526,500 to $534,500; and
WHEREAS, the City Commission of the City of Tamarac, Florida deems it to
be in the best interests of the citizen and residents of the City of Tamarac to
authorize the City Manager to authorize and approve renewal options, and
increases in the aggregate cost of the Agreement for a sum not to exceed $10,000
for the remainder of the Agreement, for an aggregate amount not to exceed
$544,500, which includes the current requests for increase for years two (2), three
(3), four (4) and five (5) to accommodate unforeseen situations.
The remainder of this page is intentionally left blank
•
Temp. Reso. #13208
10/25/2018
Page 4
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF TAMARAC, FLORIDA:
SECTION 1: The foregoing "WHEREAS" clauses are hereby ratified and
confirmed as being true and correct and are hereby made a specific part of this
Resolution upon adoption hereof.
SECTION 2: The appropriate City officials are hereby authorized to accept
an increase in the annual fee for year two (2), Nunc Pro Tunc, from $103,500 to
$105,500, and years three (3), four(4) and five (5) of the Agreement with RSM US,
LLP from $106,500 to $108,500 annually for a revised aggregate change in cost
from $526,500 to $534,500.
SECTION 3: The City Manager or his designee is hereby authorized to
approve any renewal options and increases in the aggregate cost of the Agreement
for a sum not to exceed $10,000 for the remainder of the Agreement, for an
aggregate amount not to exceed $544,500, which includes the current requests for
increase for years two (2), three (3), four (4) and five (5) to accommodate
unforeseen situations.
SECTION 4: All Resolutions or parts of Resolutions in conflict herewith are
hereby repealed to the extent of such conflict.
SECTION 5: If any clause, section, other part or application of this
Resolution is held by any court of competent jurisdiction to be unconstitutional or
invalid, in part or application, it shall not affect the validity of the remaining portions
or applications of this Resolution.
SECTION 6: This Resolution shall become effective immediately upon its10
passage and adoption.
Temp. Reso. #13208
f , 10/25/2018
Page 5
PASSED,ADOPTED AND APPROVED this �7 day of �7,(( die(,), 2018.
RRY D ESSLER
MAYOR
ATTEST:
PATRICIA TEUFE MC
CITY CLERK
RECORD OF COMMISSION VOTE:
MAYOR DRESSLER
11 DIST 1: COMM. BOLTON 4/
DIST 2: V/M GOMEZ '
DIST 3: COMM. FISHMAN e_
DIST 4: COMM. PLACKO
I HEREBY CERTIFY THAT I HAVE
APPROVED THIS RESOLUTION
AS TO FORM
r `r.- ISAM E�'L S. G1,4,1,tiv
CITY ATTORNEY
Exhibit 1
■ - �
RS M •
RSM US LLP
May 30, 2018
100 NE Third Avenue, Suite 300
Ft. Lauderdale. FL 33301
0 954 462 6300
F 954 462 4607
Mr. Michael C. Cernech, City Manager www rsmus.com
City of Tamarac, Florida
7525 NW 88th Avenue
Tamarac, Florida 33321
Attention Mr. Cernech:
This letter is to explain our understanding of the arrangements regarding our engagement to examine the
City of Tamarac, Florida's(the City)compliance with Sections 218.415 Florida Statutes (F.S.), regarding
the investment of public funds,for the year ended September 30, 2018.We ask that you confirm this
understanding.
Engagement Services
We will examine the City's compliance with Section 218.415 F.S. in accordance with attestation standards
established by the American Institute of Certified Public Accountants. Our report will detail the nature of
reservations, if any we have with respect to the City's compliance with Section 218.415 F.S. Should we
have any reservations,we will discuss them with you prior to issuing our report. •
The services that we will perform are not designed and cannot be relied upon to disclose errors, fraud, or
illegal acts, should any exist. However,we will inform the appropriate level of management of any
material errors that come to our attention and any fraud or illegal acts that come to our attention, unless
they are clearly inconsequential.
Furthermore, the services were not designed to provide assurance on internal control or to identify
significant deficiencies or material weaknesses. However, we will communicate to management and the
City Commission any significant deficiencies or material weaknesses that become known to us during the
course of the engagement.
The City's Responsibilities
Management is responsible for(a) identifying applicable compliance requirements, (b) establishing and
maintaining effective internal control over compliance with Section 218.415 F.S. (c)evaluating and
monitoring the City's compliance with Section 218.415 F.S. and providing us with a written assertion
thereon, (d)specifying reports that satisfy legal, regulatory, or contractual requirements, and (e) making
all records and related information available to us. Our responsibility is to express an opinion concerning
the City's compliance with Section 218.415 F.S.
THE POWER OF BEING UNDERSTOOD
AUDIT I TAX I CONSULTING
•
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City of Tamarac, Florida
May 30, 2018
Page 2
In addition, management is responsible for the design and implementation of programs and controls to
prevent and detect fraud, and for informing us about all known or suspected fraud affecting the entity
involving management, employees who have significant roles in internal control, and others where the
fraud could have a material effect on the financial statements. Management is also responsible for
informing us of its knowledge of any allegations of fraud or suspected fraud affecting the entity received in
communications from employees, former employees, analysts, regulators, or others.
At the conclusion of our engagement, we will request certain written representations from management
about the City's compliance with Section 218.415 F.S. and matters related thereto.
Because RSM US LLP will rely on the City and its management and Commissioners to discharge the
foregoing responsibilities,the City holds harmless and releases RSM US LLP, its partners, and
employees from all claims, liabilities, losses, and costs arising in circumstances where there has been a
knowing misrepresentation by a member of the City's management that has caused, in any respect, RSM
US LLP's breach of contract or negligence. This provision will survive termination of this arrangement for
services.
City's Records and Assistance
The attestation standards require that we perform our examination engagement on the City's compliance
• with Section 218.415 F.S. only if we have reason to believe that the compliance with Sections 218.415
F.S. are capable of evaluation against criteria that are suitable and available to users. If circumstances
arise relating to the condition of the City's records, the availability of appropriate evidence, or indications
of a significant risk of material misstatement of the financial statements because of error, fraudulent
financial reporting, or misappropriation of assets,which in our professional judgment prevent us from
completing the engagement or forming an opinion, we retain the unilateral right to take any course of
action permitted by professional standards, including declining to express an opinion or issue a report, or
withdrawal from the engagement.
During the course of our engagement, we may accumulate records containing data that should be
reflected in the City's books and records.The City will determine that all such data, if necessary, will be
so reflected.Accordingly, the City will not expect us to maintain copies of such records in our possession.
The assistance to be supplied by City personnel, including the preparation of schedules and analyses of
accounts, has been discussed and coordinated with management. The timely and accurate completion of
this work is an essential condition to our completion of our services and issuance of our report_
s
City of Tamarac, Florida
May 30,2018 •
Page 3
Fees,Costs,and Access to Documentation
Our fees for the services described above are based on the time required by the individuals assigned to
the engagement, plus direct expenses. We will submit our bill for services promptly upon rendering the
report and expect that our fees will not exceed $2,000.
In the event we are requested or authorized by the City or are required by government regulation,
subpoena,or other legal process to produce our documents or our personnel as witnesses with respect to
our engagements for the City,the City will, so long as we are not a party to the proceeding in which the
information is sought, reimburse us for our professional time and expenses, as well as the fees and
expenses of our counsel, incurred in responding to such requests.
From time to time and depending upon the circumstances, we may use third-party service providers to
assist us in providing professional services to you. In such circumstances, it may be necessary for us to
disclose confidential client information to them.We enter into confidentiality agreements with all third-
party service providers and we are satisfied that they have appropriate procedures in place to prevent the
unauthorized release of your confidential information to others.
Claim Resolution
The City and RSM US LLP agree that no claim arising out of services rendered pursuant to this •
agreement shall be filed more than five years after the date of the audit report issued by RSM US LLP or
the date of this arrangement letter if no report has been issued. The City waives any claim for punitive
damages. If any term or provision of this agreement is determined to be invalid or unenforceable, such
term or provision will be deemed stricken and all other terms and provisions will remain in full force and
effect
Information Security-Miscellaneous Terms
RSM US LLP is committed to the safe and confidential treatment of the City's proprietary information.
RSM US LLP is required to maintain the confidential treatment of client information in accordance with
relevant industry professional standards which govern the provision of services described herein. The
City agrees that it will not provide RSM US LLP with any unencrypted electronic confidential or proprietary
information,and the parties agree to utilize commercially reasonable measures to maintain the
confidentially of City information, including the use of collaborate sites to ensure the safe transfer of data
between the parties.
RSM US LLP may terminate this relationship immediately in its sole discretion if the City determines that
continued performance would result in a violation of law, regulatory requirements, applicable professional
standards or RSM US LLP's client acceptance or retention standards, or if the City is placed on a verified
sanctioned entity list or if any director or executive of, or other person closely associated with, the City or
its affiliates is placed on a verified sanctioned person list, in each case, including but not limited to lists
promulgated by the Office of Foreign Assets Control of the U.S. Department of the Treasury,the U.S.
State Department,the United Nations Security Council, the European Union or any other relevant
sanctioning authority.
•
City of Tamarac, Florida
. May 30, 2018
Page 4
If any term or provision of this arrangement letter is determined to be invalid or unenforceable, such term
or provision will be deemed stricken and all other terms and provisions will remain in full force and effect.
Reporting
We will issue a written report upon completion of our examination of compliance with Section 218.415
F.S. regarding the investment of public funds in relation to established or stated criteria. Our report will be
addressed to the Mayor and Members of the City Commission.We cannot guarantee that positive
assurance on compliance with Section 218.415 F.S.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.
This letter constitutes the complete and exclusive statement of agreement between RSM US LLP and the
City, superseding all proposals, oral or written, and all other communications, with respect to the terms of
the examination engagement between the parties regarding the City's compliance with Section 218.415,
F.S.
Electronic Signatures and Counterparts
Each party hereto agrees that any electronic signature of a party to this agreement or any electronic
signature to a document contemplated hereby(including any representation letter) is intended to
authenticate such writing and shall be as valid, and have the same force and effect, as a manual
• signature. Any such electronically signed document shall be deemed (i)to be"written"or"in writing,"(ii)
to have been signed and(iii)to constitute a record established and maintained in the ordinary course of
business and an original written record when printed from electronic files. Each party hereto also agrees
that electronic delivery of a signature to any such document(via email or otherwise)shall be as effective
as manual delivery of a manual signature. For purposes hereof, "electronic signature" includes, but is not
limited to, (i) a scanned copy(as a"pdf'(portable document format)or other replicating image)of a
manual ink signature, (ii)an electronic copy of a traditional signature affixed to a document, (iii)a
signature incorporated into a document utilizing touchscreen capabilities or(iv)a digital signature. This
agreement may be executed in one or more counterparts, each of which shall be considered an original
instrument, but all of which shall be considered one and the same agreement. Paper copies or"printouts,"
of such documents if introduced as evidence in any judicial, arbitral, mediation or administrative
proceeding,will be admissible as between the parties to the same extent and under the same conditions
as other original business records created and maintained in documentary form. Neither party shall
contest the admissibility of true and accurate copies of electronically signed documents on the basis of
the best evidence rule or as not satisfying the business records exception to the hearsay rule
11111
City of Tamarac, Florida
May 30, 2018 IIIII
Page 5
If this letter defines the arrangements as the City understands them, please sign and date the enclosed
copy and return it to us.We appreciate your business.
RSM US LLP
-� —
Brett Friedman
Client Service Partner
).12 /
Anil Hams
Senior Manager
Confirm=: • •-.•alf• - • amarac, F •rida: III
/ i',1111r t(-0-15
ichael C. Cernech Date
City Manager
III