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Home My WebLink About1984-05-16 - City Commission Workshop Meeting MinutesMAIL. REPLY TO: P.O. BOX 25010 TAMARAC, FLORIDA 33320 5811 NORTHWEST 88TH AVENUE i TAMARAC, FLORIDA 33321 TELEPHONE (305) 722-5900 May 11, 1984 CITY COUNCIL WORKSHOP MEETING There will be a City Council Workshop meeting immediately following the pre -agenda Workshop which is scheduled for Wednesday, May 16, 1984, in the West Conference Room at City Hall, 5811 Northwest 88 Avenue, Tamarac, )Florida. The purpose of this Workshop meeting is to discuss the next phase of City Auditor selection. The public is encouraged to attend. Carol A. Evans Assistant City Clerk P=CY OF Ill-DBCR1M1M OfI ON BASIS OF HAMICAPPID STATUS AN M1AL OP KIWI VWLMFR Mayor Kravitz read which was called to He said Council has CITY OF TAMARAC, FLORIDA CITY COUNCIL WORKSHOP MEETING May 16, 1984 Tape CALL TO ORDER: Mayor Kravitz called the meeting to order at 9:30 A.M. 1 on Wednesday, May 16, 1984, in the West Conference Room at City Hall. ROLL CALL: PRESENT: Mayor Philip B. Kravitz Vice Mayor Sydney M. Stein Councilman Jack Stelzer Councilman Raymond J. Munitz Councilman John J. Dunne ALSO PRESENT: Laura Z. Stuurmans, City Manager Carol A. Evans, Assistant City Clerk the official notice of the workshop meeting discuss the next phase of City Auditor selection. made a selection of 3 auditing firms: Touche Ross & Co. Peat, Marwick, Mitchell & Co. Alexander Grant & Co. C/M Munitz said he had conferences with the City Manager, Finance Director, Assistant Finance Director and the City Attorney and after examining the engagement letters,.he would like to revise his rating of the auditors. He said the question came up as to what effect, if any, would a change of auditor have in the market- ability of the bonds? He said it was recommended to him that he speak to Stan Ross, who is the Consultant to the City in this matter and it was his opinion that it would not have any affect whatsoever on the marketability of the bonds if Council chose to change auditors. He said his choice for auditors are: Peat, Marwick, Mitchell & Co. Alexander Grant & Co. Touche Ross & Co. V/M Stein said he voted with consideration to background and qual- ifications of the auditors involved. He said he decided to put Peat, Marwick & Mitchell third because they are not presently auditing a municipality and his objection to Alexander Grant & Co. was only that he feels it would be good for the City to have a new auditor. He said his choice for auditors are: Touche Ross & Co. Peat, Marwick, Mitchell & Co. Alexander Grant & Co. C/M Dunne said his choice for auditors are: Touche Ross & Co. Peat, Marwick, Mitchell & Co. Alexander Grant & Co. C/M Stelzer said Council has received sample letters of engagement that indicate the scope of the audit they expect to do. He said he was under the impression that Council would review these to determine if the scope of their audits would cover everything the City needs done in the audit. He said he feels that Mayor Kravitz should determine what he would like done by an accountant. He said the accountants normally do not go in and find deficiencies, however, they do come in to verify the books. He said if they will be paid to look for deficiencies, they would do so. He suggested Council review the letters of engagement and present to each accountant exactly what they feel should be done. He said his choice for auditors are: Alexander Grant & Co. Peat, Marwick, Mitchell & Co. Deloitte Haskins - 1 - 5/16/84 /pm V/M Stein said he was under the impression that before Council interviewed the 3 firms selected they would review their letters of engagement. He said he did not think Council would revote at this point. The City manager said that the Statutes relating to services for CPAs differs from the Statute that Council is familiar with for Competitive Negotiations for Architects, Engineers, Planners, etc. Mayor Kravitz read into the record, Florida Statute Cha--.ter 11.45, "if the Board receives more than one proposal for the same engagement, the Board may rank, in order of preference, the firms to perform the engagement. The firm ranked first may then negotiate a contract with the Board giving among them the basis of their fee for that engagement. Failing to accord with the second ranked firm, negotiations shall then be terminated with that firm and undertaken with a third ranked firm. The Board negotiations with firms may reopen formal negotiations with any one of the three top ranked firms but then may not negotiate with more than one firm at a time". Mayor Kravitz said he was critical of the present auditor because as liaison to the Finance Department for the past 3 years, he was required to check into the budget and audit and work with those figures. He said with his background as a CPA, he felt qualified to do this. He said 3 years ago he asked both C/M Stelzer and C/M Munitz to serve as his aides and they met with the auditor and recommended he put certain things in the audit. He said they did adhere to those requests, however, he was never given the opportun- ity to work more closely with them. He said he did feel unsatisfied with the internal control situation and he requested an internal control report which they did get at a cost to the City of $10,000. He said his question when they received the report in September, 83 was, did the City now use that report in having the audit to check the internal control? He said the answer was that they did not because it is not part of the audit. However, he said, Alexander Grant & Co. now states that they will change their auditing program to include an audit of one department per year at no additional cost to the City. Mayor Kravitz said he has no objection to Alexander Grant & Co. now because: 1. they have more experience than any auditing firm they have reviewed. 2. they have the knowledge of the City's problems and if they can correct it and give the type of audit required, they should be able to continue for another year. He said with all those factors, his choice for auditors are: Alexander Grant & Co. Touche Ross & Co. Peat, Marwick, Mitchell & Co. C/M Munitz recommended interviewing each of these 3 firms but that Council not decide until after they have spoken to all 3. C/M Stelzer said he does not know what more these accountants can say that is not in their letters of engagement. He said if Alexander Grant & Co., who agreed to audit one department per year at no additional cost, can assure Council that he will not change any procedures for the other work done, then it would be beneficial. Mayor Kravitz said this could be answered when the auditors are interviewed. Mayor Kravitz said he will call a Special Meeting to interview the 3 auditors mentioned at which time, fees may be discussed. C/M Stelzer said it should be agreed that the same work must be done by each accountant that is interviewed and this was agreed upon by all Council members. C/M Munitz said there is a course given by the Florida Institute of CPA which is part of the contin- uing professional education that all Florida CPAs are required to have. - 2 - 5/16/84 /pm CZ M Munitz read from a pamphl-et written for the ac_counta_nts _which enumerates the responsibilities they have which is entitled, "Internal Control Considerations". He suggested members of Council discuss with the City Manager and Finance Director all matters concerning this. C/M Stelzer said it should be stressed that it most important to have an exit conference and letter. . ............. The City Manager suggested that the meeting Mayor Kravitz will call should be advertised as a Special Meeting as a final interview with all 3 firms to be concluded with the first choice. Mayor Kravitz said it has been decided that the order of ranking is. Touche Ross & Co. Feat, Marwick, Mitchell & Co. Alexander Grant & Co. Tape The City Manager said they will be called in for an interview in 2 that order but it will be followed by a ranking to negotiate. Mayor Kravitz adjourned the meeting at 10:15 A.M. Carol A. Evans Assistant City Clerk This public document was promulgated at a cost of $ ��►• 3d or $ 4.4 o per copy, to inform the general public and public officers and employees about recent opinions and considerations by the City Council of the City of Tamarac. - 3 - 5/16/84 /pm