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HomeMy WebLinkAboutCity of Tamarac Resolution R-2010-100Temp. Reso #11898— June 24, 2010 Page 1 of 4 CITY OF TAMARAC, FLORIDA RESOLUTION NO. 2010 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO AMEND THE ORIGINAL AGREEMENT BETWEEN THE CITY OF TAMARAC AND GLSC & COMPANY, PLLC, FOR ANNUAL AUDITING SERVICES TO EXTEND THE AGREEMENT FOR FISCAL YEARS ENDING ON SEPTEMBER 30, 2010, SEPTEMBER 30, 2011 AND SEPTEMBER 30, 2012 RESPECTIVELY, FOR A NOT TO EXCEED COST OF $110,000, INCLUDING THE EXPANSION OF THE SCOPE OF SERVICES TO INCLUDE AUDIT OF FINANCIAL STATEMENTS OF THE CITY OF TAMARAC POLICE OFFICERS' PENSION TRUST FUND, THE CITY OF TAMARAC FIREFIGHTERS' PENSION TRUST FUND, THE CITY OF TAMARAC GENERAL EMPLOYEES' PENSION TRUST FUND AND THE CITY OF TAMARAC ELECTED AND APPOINTED OFFICERS AND NON -REPRESENTED EMPLOYEES RETIREMENT FUND; 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 utilized due diligence in seeking responses for qualified firms to provide auditing services to the City; and WHEREAS, Resolution R-2003-198 dated August 27, 2003, authorized execution of an agreement with BKR Garcia & Company, PLLC (Contractor) providing for annual auditing services, a copy of said resolution and agreement is hereto on file in the City Clerk's office; and WHEREAS, the firm of BKR Garcia & Company, PLLC, changed their name to Temp. Reso #11898— June 24, 2010 Page 2 of 4 GLSC & Company, PLLC effective January 1, 2008; and WHEREAS, the City has contracted with GLSC & Company, PLLC, for the past seven years to perform the City's independent annual audit; and WHEREAS, various pension trust funds, including the City of Tamarac Police Officers' Pension Trust Fund, the City of Tamarac Firefighters' Pension Trust Fund, the City of Tamarac General Employees' Pension Trust Fund and the City of Tamarac Elected and Appointed Officers and Non -Represented Employees Retirement Fund must also be audited on an annual basis in conformity with U.S. generally accepted accounting principles; and WHEREAS, the use of the same auditing firm to audit various pension trust funds will provide for greater consistency in the audit process; and WHEREAS, GLSC & Company, PLLC has proposed to perform current City auditing services plus the expanded scope of work of auditing all pension trust funds for the current Fiscal Year 2010 cost of $110,000, which represents a considerable savings to the City; and WHEREAS, additional savings will be realized by maintaining the Fiscal Year 2010 pricing of $110,000 firm through the fiscal year ending September 30, 2012 with no increase in price; and WHEREAS, an extension of the agreement with GLSC & Company, PLLC will provide for the necessary continuity required because of their knowledge and extensive past experience with the City of Tamarac at a considerable cost savings to the City; and WHEREAS auditing services is a professional service which is exempted from competitive competition by Section 6-151 (2) of the City of Tamarac Purchasing Code; and 1 1 Temp. Reso #11898— June 24, 2010 Page 3 of 4 WHEREAS, GLSC & Company, PLLC, has provided the City with a Letter of Engagement included herein as Exhibit "A"; and WHEREAS, the letter of Engagement provides a three year agreement with annual fees not to exceed $110,000 for the term of the contract extension; and WHEREAS, available funds exist in the current budget for said purpose; and WHEREAS, GLSC & Company, PLLC, has provided qualitative auditing services in accordance with the terms of the agreement; and WHEREAS, the Director of Financial Services and the Controller recommend that the agreement with GLSC & Company, PLLC, be extended for a three year period to provide annual auditing services for fiscal years ending September 30, 2010, September 30, 2011 and September 30, 2012; 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 extend the contract between the City of Tamarac, Florida and GLSC & Company, PLLC, for a three year period for fiscal years ending September 30, 2010, September 30, 2011 and September 30, 2012 to serve as the City's external Auditor, and the external auditor for the various pension trust funds enumerated herein, and to authorize the appropriate City officials to execute Agreement Amendment 4, attached hereto as Exhibit "B". 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.; and all exhibits attached hereto are incorporated herein by reference. SECTION 2: The appropriate City officials are hereby authorized to exercise Temp. Reso #11898— June 24, 2010 Page 4 of 4 the third and final renewal option between the City of Tamarac, Florida, and GLSC & Company, PLLC, for annual auditing services, and to execute Agreement Amendment Number 4, attached hereto as Exhibit "B" to extend the Agreement for a three year period for fiscal years ending September 30, 2010, September 30, 2011 and September 30, 2012 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. SECTION 5: This Resolution shall become effective immediately upon its passage and adoption. PASSED, ADOPTED AND APPROVED this /� day of , 2010. ATTEST: I HEREBY CERTIFY that I have approved this CITY ATTORN Record of COMMISSION VOTE: MAYOR TALABISCO 4AW DIST 1: COMM BUSHNELL DIST 3: COMM GLASSER DIST 4: VM DRESSLER _y44�� 1 IL City of Tamarac Purchasing and Contracts Division AGREEMENT AMENDMENT # 4 BETWEEN THE CITY OF TAMARAC AND GLSC & COMPANY, PLLC The City of Tamarac, a municipal corporation, with principal offices located at 7525 NW 88th Avenue, Tamarac FL 33321 (CITY), and GLSC & Company, PLLC, a Florida Limited Liability Corporation with principal offices located at 6303 Blue Lagoon Drive, Suite 200, Miami, FL 33126, (AUDITOR), agree to amend the original Agreement dated August 26, 2003 as follows: ARTICLE 1 — EFFECTIVE DATE: The City and GLSC & Company, PLLC agree to extend the existing agreement for a period of three (3) years, effective for the audit to be conducted for Fiscal Year 2010. ARTICLE 2 — SERVICE TO BE PERFORMED BY AUDITOR: Amend as follows: The AUDITOR shall perform the services in accordance with the provisions contained in the Request for Proposals attached hereto as Attachment "A", as amended and superseded by GLSC Engagement Letter dated June 21, 2010, which is hereby incorporated in its entirety and made a part of this Agreement. Such additional authorizations will be in the form of a Purchase Order or revised Engagement Letter. Each Purchase Order or revised Engagement Letter as appropriate, will set forth a specific Scope of Services, amount of compensation and completion date. Article 3 — COMPENSATION: Amend as follows: The CITY shall pay AUDITOR in accordance with the fee schedule below. Year 1 $77,000 Year 2 $80,000 Year 3 $83,500 Year 4 $89,500 (Renewal Option 1) Year 5 $99,500 (Renewal Option 2) Year 6 $99,500 (Extension Year 1) Year 7 $104,475 (Extension Year 2) M of Tamarac Purchasing and Contracts Division Year 8 $110.000 (2010 approved Extension Year 1 3) Year 9 $110,000 (2010 approved Extension Year 2) Year 10 $110,000 (2010 approved Extension Year 3) Amend Article 20 - Notice to reflect a corporate address change as follows: ARTICLE 20 - NOTICE: Amend as follows: Any notice, demand, communication, or request required or permitted hereunder shall be in writing and delivered in person or delivered in person, sent by U.S. certified mail, U.S. Express Mail, air or ground courier services, or by messenger service as follows: lei ICA City Manager City of Tamarac 7525 NW 88th Avenue Tamarac, Florida 33321-2401 With a copy to the City Attorney at the following address. Goren, Cherof, Doody & Ezrol, P.A. 3099 East Commercial Blvd., Suite 200 Fort Lauderdale, FL 33308 AUDITOR: Pablo Llerena, CPA Managing Agent GLSC & Company, PLLC I1 10 -Rrmr--ne" Auen 6303 Blue Lagoon Drive, Suite 200 Miami, FL 33131 313=33126-6025 (305) 373-0123 All other provisions of the original agreement remain in effect as written. Remainder of Page Intentionally Blank of Tamarac Purchasing and Contracts Division IN WITNESS WHEREOF, the parties hereby have made and executed this Amendment to Agreement on the respective dates under each signature, the City of Tamarac signing through its Mayor and City Manager, and GLSC & Company, PLLC, by and through its Managing Agent, duly authorized to execute same. ATTEST: /101- Marion SWenson, OMC City Clerk wx� Date ATTEST: N./A (Corporate Secretary) None Type/Print Name of Corporate Secy CITY OF TAMARA Beth Talabisco, Mayor 7-j/-t0 Date y Jeffrey L.Vilkfr, City Manager --? /Z-O bo Date Approv d as to form and legal sufficiency: �t\Samubl S. Goren, City Attorney i --% Date GLSC & COMPANY, PLLC Company Name 9auo om�0.z Signature of Managing Agent Pablo R. Llerena Type/Print Name of Managing Agent JvN 2 2e 20 lO (CORPORATE SEAL) Date City of Tamarac; CORPORATE ACKNOWLEDGEMENT STATE OF F LOC'%& SS COUNTY OF "\Ck 1 , bQCC— and Contracts Division I HEREBY CERTIFY that on this day, before me, an Officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, personally appeared Pablo R. Llerena Managing Agent of GLSC & Company, PLLC, a Florida Limited Liability Corporation, to me known to be the person(s) described in and who executed the foregoing instrument and acknowledged before me that he/she executed the same. WITNESS my hand and official seal this r m day of ,JUO , 2010. Signature of Nota lic QISOTY MARRERO State of Florida at Large �e�"w•'N '. Comm#DD0724682 �� M. z. Expires 11/9/2011 ,Fb.`ida ..............::.....; Print, Type or Stamp Name of Notary Public Er Personally known to me or ❑ Produced Identification Type of I.D. Produced DID take an oath, or ❑ DID NOT take an oath. 6303 Blue Lagoon Drive, Suite 200 GLSC & COMPANY, PLLC Miami, Florida 33126-6025 NN certified public accountants Ph: (305) 373-0123 • (800) 330-4728 w Fax: (305) 374-4415 www.glsccpa.com June 21, 2010 Mr. Jeffrey Miller City Manager City of Tamarac, Florida 7525 NW 88t' Avenue Tamarac, Florida 33321-2401 Dear Mr. Miller: We are pleased to confirm our understanding of the services we are to provide City of Tamarac, Florida for the years ending September 30, 2010, 2011 and 2012. We will audit the financial statements of the governmental activities, the business -type activities, the pension trust funds, each major fund, and the aggregate remaining fund information, which collectively comprise the basic financial statements, of City of Tamarac, Florida as of and for the years ending September 30, 2010, 2011 and 2012. Accounting standards generally accepted in the United States provide for certain required supplementary information (RSI), such as management's discussion and analysis (MD&A), to supplement City of Tamarac's basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to City of Tamarac's RSI in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The following RSI is required by generally accepted accounting principles and will be subjected to certain limited procedures, but will not be audited: 1) Management's Discussion and Analysis. 2) Budgetary Comparison Schedules 3) Schedule of Funding Progress and Employer's Contributions on Employees' Pension Funds Supplementary information other than RSI also accompanies City of Tamarac's financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and will provide an opinion on it in relation to the financial statements as a whole: 1) Schedule of expenditures of federal awards and state financial assistance projects. 2) Combining and individual fund statements An Independent Member of BKR IN-fERNATIONM Firms In Principal Cities Worldwide Mr. Jeffrey Miller City Manager June 21, 2010 Page 2 The following other information accompanying the financial statements will not be subjected to the auditing procedures applied in our audit of the financial statements, and for which our auditor's report will not provide an opinion or any assurance. 1) Introductory Section 2) Statistical Section We will also audit the financial statements of the following pension trust funds as of and for the years ending September 30, 2010, 2011 and 2012: 1. City of Tamarac Police Officers' Pension Trust Fund 2. City of Tamarac Firefighters' Pension Trust Fund 3. City of Tamarac General Employees' Pension Trust Fund 4. City of Tamarac Elected and Appointed Officers and Non -Represented Employees Retirement Fund Audit Objectives The objective of our audit is the expression of opinions as to whether your basic financial statements are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to report on the fairness of the supplementary information referred to in the second paragraph when considered in relation to the financial statements as a whole. The objective also includes reporting on — Internal control related to the financial statements and compliance with laws, regulations, and the provisions of contracts or grant agreements, noncompliance with which could have a material effect on the financial statements in accordance with Government Auditing Standards. • Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with laws, regulations, and the provisions of contracts or grant agreements that could have a direct and material effect on each major program in accordance with the Single Audit Act Amendments of 1996 and OMB Circular A-133, Audits of States, Local Governments, and Non - Profit Organizations, and Chapter 10.550, Rules of the Auditor General. The reports on internal control and compliance will each include a statement that the report is intended solely for the information and use of management, the body or individuals charged with governance, others within the entity specific legislative or regulatory bodies, federal awarding agencies, and if applicable, pass -through entities and is not intended to be and should not be used by anyone other than these specified parties. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America; the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the provisions of OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General, and will include tests of accounting records, a determination of major program(s) in accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General, and other procedures we consider necessary to enable us to express such opinions and to render the required reports. If our opinions on the financial statements or the Single Audit compliance opinions are other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. GLSC & COMPANY, PLLC certified public accountants ti' Mr. Jeffrey Miller City Manager June 21, 2010 Page 3 Management Responsibilities Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. Management is also responsible for identifying government award programs and understanding and complying with the compliance requirements, and for preparation of the schedule of expenditures of federal awards and state financial assistance projects in accordance with the requirements of OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. As part of the audit, we will assist with preparation of your financial statements, schedule of expenditures of federal awards and state financial assistance projects, and related notes. You are responsible for making all management decisions and performing all management functions relating to the financial statements, schedule of expenditures of federal awards and state financial assistance projects, and related notes and for accepting full responsibility for such decisions. You will be required to acknowledge in the management representation letter our assistance with preparation of the financial statements and the schedule of expenditures of federal awards and state financial assistance projects and that you have reviewed and approved the financial statements, schedule of expenditures of federal awards and state financial assistance projects, and related notes prior to their issuance and have accepted responsibility for them. Further, you are required to designate an individual with suitable skill, knowledge, or experience to oversee any nonaudit services we provide and for evaluating the adequacy and results of those services and accepting responsibility for them. Management is responsible for establishing and maintaining effective internal controls, including internal controls over compliance, and for evaluating and monitoring ongoing activities, to help ensure that appropriate goals and objectives are met and that there is reasonable assurance that government programs are administered in compliance with compliance requirements. You are also responsible for the selection and application of accounting principles; for the fair presentation in the financial statements of the respective financial position of the governmental activities, the business -type activities, the pension trust funds, each major fund, and the aggregate remaining fund information of the City of Tamarac and the respective changes in financial position and, where applicable, cash flows in conformity with U.S. generally accepted accounting principles; and for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is also responsible for making all financial records and related information available to us and for ensuring that management and financial information is reliable and properly recorded. Your responsibilities also include identifying significant vendor relationships in which the vendor has responsibility for program compliance and for the accuracy and completeness of that information. Your responsibilities include adjusting the financial statements to correct material misstatements and confirming to us in the representation letter that 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. You are 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 or illegal acts affecting the government involving (1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud or illegal acts could have a material effect on the financial statements. Your responsibilities include informing us of your knowledge of any allegations of fraud or suspected fraud affecting the government received in communications from employees, former employees, grantors, regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies with applicable laws, regulations, contracts, agreements, and grants. Additionally, as required by OMB Circular A-133 and Chapter 10,550, Rules of the Auditor General, it is management's responsibility to follow up and take corrective action on reported audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan. GLSC &COMPANY, PLLC 1" r certified public accountants Mr. Jeffrey Miller City Manager June 21, 2010 Page 4 Management is responsible for establishing and maintaining a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous financial audits, attestation engagements, performance audits, or other studies related to the objectives discussed in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to address significant findings and recommendations resulting from those audits, attestation engagements, performance audits, or studies. You are also responsible for providing management's views on our current findings, conclusions, and recommendations, as well as your planned corrective actions, for the report, and for the timing and format for providing that information. Audit Procedures —General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements or major programs. However, we will inform you of any material errors and any fraudulent financial reporting or misappropriation of assets that come to our attention. We will also inform you of any violations of laws or governmental regulations that come to our attention, unless clearly inconsequential, and of any material abuse that comes to our attention. We will include such matters in the reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, funding sources, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will require certain written representations from you about the financial statements and related matters. Audit Procedures —Internal Controls Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to Government Auditing Standards. GLSC & COMPANY, PLLC certified public accountants Mr. Jeffrey Miller City Manager June 21, 2010 Page 5 As required by OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General, we will perform tests of controls over compliance to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each major federal award program. However, our tests will be less in scope than would be necessary to render an opinion on those controls and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However, during the audit, we will communicate to management and those charged with governance internal control related matters that are required to be communicated under AICPA professional standards, Government Auditing Standards, OMB Circular A-133, and Chapter 10.550, Rules of the Auditor General. Audit Procedures —Compliance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of City of Tamarac's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements. However, the objective of those procedures will not be to provide an opinion on overall compliance and we will not express such an opinion in our report on compliance issued pursuant to Government Auditing Standards. OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General requires that we also plan and perform the audit to obtain reasonable assurance about whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant agreements applicable to major programs. Our procedures will consist of tests of transactions and other applicable procedures described in the OMB Circular A-133 Compliance Supplement and Chapter 10.550 Compliance Supplement and related addenda for the types of compliance requirements that could have a direct and material effect on each of City of Tamarac's major programs. The purpose of these procedures will be to express an opinion on City of Tamarac's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. Engagement Administration, Fees, and Other We may from time to time, and depending on the circumstances, use third -party service providers in serving your account. We may share confidential information about you with these service providers, but remain committed to maintaining the confidentiality and security of your information. Accordingly, we maintain internal policies, procedures, and safeguards to protect the confidentiality of your personal information. In addition, we will secure confidentiality agreements with all service providers to maintain the confidentiality of your information and we will take reasonable precautions to determine that they have appropriate procedures in place to prevent the unauthorized release of your confidential information to others. In the event that we are unable to secure an appropriate confidentiality agreement, you will be asked to provide your consent prior to the sharing of your confidential information with the third -party service provider. Furthermore, we will remain responsible for the work provided by any such third -party service providers. We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any documents selected by us for testing. GLSC & COMPANY, PLLC certified public accountants Mr. Jeffrey Miller City Manager June 21, 2010 Page 6 At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form that summarizes our audit findings. It is management's responsibility to submit the reporting package (including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors' reports, and corrective action plan) along with the Data Collection Form to the federal audit clearinghouse. We will coordinate with you the electronic submission and certification. If applicable, we will provide copies of our report for you to include with the reporting package you will submit to pass -through entities. The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after receipt of the auditors' reports or nine months after the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audits. The audit documentation for this engagement is the property of GLSC & Company, PLLC and constitutes confidential information. However, pursuant to authority given by law or regulation, we may be requested to make certain audit documentation available to federal or state agencies or its designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of GLSC & Company, PLLC personnel. Furthermore, upon request, we may provide copies of selected audit documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of five years after the report release or for any additional period requested by the federal or state agencies. If we are aware that a federal awarding agency, pass -through entity, or auditee is contesting an audit finding, we will contact the party(ies) contesting the audit finding for guidance prior to destroying the audit documentation. Pablo Llerena is the engagement partner and is responsible for supervising the engagement and signing the reports or authorizing another individual to sign them. Our fee for these services will be $110,000 for each of the fiscal years ending September 30, 2010, 2011 and 2012 and these fees are inclusive of the audit services we are to provide to the City's four (4) Pension Trust Funds for the same cut-off dates to which separate engagement letters will be provided. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 30 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed upon written notification of termination, even if we have not completed our report. You will be obligated to compensate us for all time expended and to reimburse us for all out- of-pocket costs through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Government Auditing Standards require that we provide you with a copy of our most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2007 peer review accompanies this letter. =w GLSC & COMPANY, PLLC certified public accountants Mr. Jeffrey Miller City Manager June 21, 2010 Page 7 We appreciate the opportunity to be of service to City of Tamarac, Florida and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, GLSC & COMPANY, PLLC Pablo Llerena, CPA RESPONSE: This letter correctly sets forth the understanding of City of Tamarac, Florida. Title: Je rey L. Miller 11 Mi er y ana 9 Date: -7 lz4l/O GLSC & COMPANY, PLLC ?, certified public accountants HBHEVIA, BEAGLES & COMPANY, P. A. PROFESSIONAL CONSULTING GROUP CERTIFIED PUBLIC ACCOUNTANTS November 7, 2007 To the Owners GLSC & Company, PLLC f/k/a BKR Garcia & Company, PLLC We have reviewed the system of quality control for the accounting and auditing practice of GLSC & Company, PLLC (the firm) in effect for the year ended June 30, 2007. A system of quality control encompasses the firm's organizational structure, the policies adopted and procedures established to provide it with reasonable assurance of conforming with professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of CPAs (AICPA). The firm is responsible for designing a system of quality control and complying with it to provide the firm reasonable assurance of conforming with 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 with its system of quality control based on our review. Our review was conducted in accordance with standards established by the Peer Review Board of the AICPA. During our review, we read required representations from the firm, interviewed firm personnel and obtained an understanding of the nature of the firm's accounting and auditing practice, and the design of the firm's system of quality control sufficient to assess the risks implicit in its practice. Based on our assessments, we selected engagements and administrative files to test for conformity with professional standards and compliance with the firm's system of quality control. The engagements selected represented a reasonable cross-section of the firm's accounting and auditing practice with emphasis on higher -risk engagements. The engagements selected included among others engagements performed under Government Auditing Standards and audits of employee benefit plans. Prior to concluding the review, we reassessed the adequacy of the scope of the peer review procedures and met with firm management to discuss the results of our review. We believe that the procedures we performed provide a reasonable basis for our opinion. In performing our review, we obtained an understanding of the system of quality control for the firm's accounting and auditing practice. In addition, we tested compliance with the firm's quality control policies and procedures to the extent we considered appropriate. These tests covered the application of the firm's policies and procedures on selected engagements. Our review was based on selected tests therefore it would not necessarily detect all weaknesses in the system of quality control or all instances of noncompliance with it. There are inherent limitations in the effectiveness of any system of quality control and therefore noncompliance with the system of quality control may occur and not be detected. Projection of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or because the degree of compliance with the policies or procedures may deteriorate. In our opinion, the system of quality control for the accounting and auditing practice of GLSC & Company, PLLC in effect for the year ended June 30, 2007, has been designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the AICPA and was complied with during the year then ended to provide the firm with reasonable assurance of conforming with professional standards. As is customary in a system review, we have issued a letter under this date that sets forth comments that were not considered to be of sufficient significance to affect the opinion expressed in this report. a c L �Ce i ied public ountants HEVIA, BEAGLES & COMPANY, P. A. PROFESSIONAL CONSULTING GROUP CERTIFIED PUBLIC ACCOUNTANTS November 7, 2007 To the Owners GLSC & Company, PLLC f/k/a BKR Garcia & Company, PLLC We have reviewed the accounting and auditing practice of GLSC & Company, PLLC (the firm) for the year ended June 30, 2007, and have issued our report thereon dated November 7, 2007. That report should be read in conjunction with the comments in this letter, which were considered in determining our opinion. The matters described below were not considered to be of sufficient significance to affect the opinion expressed in that report. 1. Comment - Newly issued professional standards require documentation of independence considerations when providing non -attest services to an attest client. The firm has established policies and procedures to safeguard independence, but has not established a policy for documenting those considerations on compilation and review engagements. As a result, such independence considerations were generally not documented on those engagements. Recommendation - The firm should adopt a policy requiring this documentation and should hold a training session for all staff to familiarize them with these requirements. Compliance with this requirement should be evaluated during the firm's next annual inspection. Certified Publicountants