HomeMy WebLinkAboutCity of Tamarac Resolution R-2016-078Temp. Reso #12806 —June 27, 2016
Page 1 of 6
CITY OF TAMARAC, FLORIDA
RESOLUTION NO. 2016 7�
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 LETTER 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
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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:
and,
• GLSC & Co., PLCC
• Grau & Associates
• HCT Certified Public Accountants and Consultants
• Keefe McCullough
• Marcum Accountants & Advisors
• Rehman Robson, LLC
• RSM US, LLP
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
1
Temp. Reso #12806 —June 27, 2016
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presentations to the Audit Committee, which are shown in rank order based on the highest
score shown first:
and,
• RSM US, LLP
• GLSC & Co., PLCC
• Grau & Associates Marcum Accountants & Advisors
• Marcum Accountants & Advisors
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":
PROPOSING FIRM
RANKING
RSM US, LLP
1S
Place
Marcum Accountants & Advisors
2"
Place
Grau and Associates
3r
Place
GLSC & Co., PLCC
4
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
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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
1
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Temp. Reso #12806 —June 27, 2016
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Services, and the appropriate City officials are hereby authorized to execute a Letter or
Engagement attached hereto as Exhibit "Y 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.
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.
SFrTIC)N
passage and adoption.
This Resolution shall become effective immediately upon its
Temp. Reso #12806 —June 27, 2016
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PASSED, ADOPTED AND APPROVED this %3 day of , 2016
DIANE GLASS
VICE MAYO
ATTEST:
RECORD OF COMMISSION VOTE:
MAYOR DRESSLER GZ
DIST 1: COMM. BUSHNELL C
DIST 2: COMM. GOMEZ �✓
DIST 3: V/M GLASSER ti
DIST 4: COMM. PLACKO
I HEREBY CERTIFY that I
have approved this
RESOLUTION as to form.
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TR 12806 Exhibit 2
16-07R
FINANCIAL AUDITING SERVICES
Final Audit Committee Rankings
June 7, 2016
Proosees Name:
I GLSC, I
,GRAU,;;:, .
MARCUM
I RSM
Individual Rankin
City Manager
4
3
2
1
Assistant City Manager
4
3
2
1
Director of Financial Services
4
3
2
1
Director of Community Development
4
3
2
1
Director of Public Services
4
3
2
1
Director of Information Technology
4
3
1
2
Purchasing & Contracts Manager
1 4
3
2
1
TOTAL"POINTS
TOTAL POINTS
28
21
13
8
FINAL RANKING';
4- T77
3 ,
2 '.
1
A rannmg or. t=oest Wuannea; z= Next west
Qualified and so on.
Yellow Highlighted Cells: Highest Ranked Firm
June 16, 2016
Mr. Michael C. Cernech
City Manager
City of Tamarac, Florida
7525 NW 88th Avenue
Tamarac, Florida 33321
Attention Mr. Cernech:
RSM
RSM US LLP
100 NE Third Avenue
Suite 300
Fort Lauderdale, FL 33301, USA
O +1 954.462.6300
F +1 954.462.4607
www.rsmus.com
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
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.
AUDIT i Ti
4
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;
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
e. 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
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 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 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.
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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
CITYCLERKD-TAMARAC.ORG
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.
A
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
Brett Friedman
Engagement Partner
Confirmed on behalf of the City of Tamarac, Florida:
Michael a cemech
oe
Date
7
BKO.,
CPAs & Advisors
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 procedures. 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.or I rsummM.
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) I 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 fees) or fail. McGladrey LLP has received a peer review rating of pass.
iG1) I:ap
December 4, 2013
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