HomeMy WebLinkAboutCity of Tamarac Resolution R-2018-153Temp. Reso. #13208
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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
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
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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
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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.
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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 its
passage and adoption.
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PASSED, ADOPTED AND APPROVED this day of y 12018.
ATTEST:
PATRICIA TEUFEL CMC
CITY CLERK
I HEREBY CERTIFY THAT I HAVE
APPROVED THIS RESOLUTION
AS TO FORM
SAMUEL S. GOREN
CITY ATTORNEY
H RRY D ESSLER
MAYOR
RECORD OF COMMISSION VOTE:
MAYOR DRESSLER
DIST 1: COMM. BOLTON �/
DIST 2: WM GOMEZ
DIST 3: COMM. FISHMAN ^Z-,4"1
DIST 4: COMM. PLACKO
May 30, 2018
Mr. Michael C. Cernech, City Manager
City of Tamarac, Florida
7525 NW 88th Avenue
Tamarac, Florida 33321
Attention Mr. Cernech:
Exhibit 1
RSM
RSM US LLP
100 NE Third Avenue, Suite 300
Ft. Lauderdale. FL 33301
O 954 462 6300
F 954 462 4607
www.rsmus.com
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.
City of Tamarac, Florida
May 30, 2018
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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
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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.
City of Tamarac, Florida
May 30, 2018
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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
Anil Harris
Senior Manager
'/B
City Manager