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HomeMy WebLinkAboutCity of Tamarac Resolution R-2008-0731 Temp. Reso #11409 May 12, 2008 Page 1 of 4 Revision 1: 5/21 /08 CITY OF TAMARAC, FLORIDA RESOLUTION NO. 2008— 13 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 (FORMERLY BKR GARCIA & COMPANY, PLLC), FOR ANNUAL AUDITING SERVICES TO EXTEND THE AGREEMENT FOR A THREE YEAR PERIOD BEGINNING WITH THE FISCAL YEAR ENDING SEPTEMBER 30, 2008; FOR A NOT TO EXCEED COST OF $99,500, $104,475, AND $110,000 FOR FISCAL YEARS ENDING ON SEPTEMBER 30TH 2008, 2009 AND 2010 RESPECTIVELY, 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 GLSC & Company, PLLC effective January 1, 2008, in accordance with a December 3, 2007, correspondence attached hereto as Exhibit "A"; and Temp. Reso #11409 May 12, 2008 Page 2 of 4 Revision 1: 5/21/08 WHEREAS, the City has contracted with GLSC & Company, PLLC, forthe pastfive years to perform the City's independent annual audit; and WHEREAS, recent staffing changes in the Financial Services Department including the departure of the former Controller have resulted in a need for additional continuity in auditing services; 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; 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 WHEREAS, GLSC & Company, PLLC, formerly known as BKR Garcia & Company, PLLC, has provided the City with a Letter of Engagement included herein as Exhibit "B", and WHEREAS, the letter of Engagement provides a three year agreement with annual fees not to exceed $99,500, $104,475 and $110,000 for successive years of the contract extension; and WHEREAS, available funds exist in the current budget for said purpose; and WHEREAS, GLSC & Company, PLLC, formerly known as BKR Garcia & Company, PLLC, has provided qualitative auditing services in accordance with the terms of the agreement; and WHEREAS, the Director of Financial Services and the Acting Controller recommend that the agreement with GLSC & Company, PLLC, formerly known as BKR Temp. Reso #11409 May 12, 2008 Page 3 of 4 Revision 1: 5/21 /08 Garcia & Company, be extended for an additional three year period to provide annual auditing services; 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, formerly known as BKR Garcia & Company, PLLC, for a period of three years as the City's external Auditor and to authorize the appropriate City officials to execute Agreement Amendment 3, attached hereto as Exhibit "C". 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. SECTION 2: The appropriate City officials are hereby authorized to exercise 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 3, attached hereto as Exhibit "C" to extend the Agreement for an additional three year period. 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. Temp. Reso #11409 May 12, 2008 Page 4 of 4 Revision 1: 5/21/08 SECTION 5: This Resolution shall become effective immediately upon its passage and adoption. PASSED, ADOPTED AND APPROVED thisr)-90day of , 2008. ATTEST: MARION SWENSON, CM CITY CLERK I HEREBY CERTIFY that I have approved this RESOLUTION as to form. BETH .� MAYOR RECORD OF COMMISSION VOTE: MAYOR FLANSBAUM-TALABISCO DIST 1: COMM PORTNER DIST 2: COMM ATKINS-GRAD DIST 3: V/M SULTANOF j DIST 4: COMM. DRESSLER J E of Tamarac Purchasirur and Contracts Division AGREEMENT AMENDMENT #3 BETWEEN THE CITY OF TAMARAC AND GLSC & COMPANY, PLLC The City of Tamarac, a municipal corporation, with principal offices located at 7525 NW 88t' Avenue, Tamarac FL 33321 (CITY), and GLSC & Company, PLLC, a Florida Limited Liability Corporation (formerly BKR Garcia & Company, PLLC, a Florida Limited Liability Corporation), with principal offices located at 1110 Brickell Avenue, Suite 901, Miami, FL 33131, (AUDITOR), agree to amend the original Agreement dated August 26, 2003 as follows: PREAMBLE: Correct AUDITOR'S information to reflect change in name as follows: THIS AGREEMENT made and entered into this 26th day of August , 2003, by and between the City of Tamarac, a municipal corporation of the State of Florida with principal offices located at 7525 NW 88t' Avenue, Tamarac, FL 33321 hereinafter referred to as CITY, and BKR GaFGia & Gempanyj GLSC & Company, PLLC, a Florida Limited Liability Corporation with offices located at 1110 Brickell Avenue, Suite 901, Miami, FL 33131 hereinafter referred to as AUDITOR: 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 2008. 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 Year 8 $110,000 Extension Year 3 City of Tamarac Purchasing and Contracts Division Amend Article 20 - Notice to reflect a corporate name 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: l:0"i 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 ►_1110111111 a Pablo Llerena, CPA Managing Agent GLSC & Company, PLLC 1110 Brickell Avenue, Suite 901 Miami, FL 33131-3132 (305) 373-0123 All other provisions of the original agreement remain in effect as written. Remainder of Page Intentionally Blank City of Tamarac Polchasiog and Contracts Division *---- - ... 1"..... 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: --Marion Swenson, CIVIC City Clerk Date ATTEST: N./A (Corporate Secretary) None Type/Print Name of Corporate Secy CITY OF TAMARAC r Beth Flansbaum-Talabisco, Mayor Date Jeffrey E./Miller, City Manager Date as t9rjbrm and legal sufficiency: I S./G&jen, City Attorney Date GLSC & COMPANY, PLLC Company Name e" OtLo4 1 Signature of Managing Agent Pablo R. Llerena Type/Print Name of Managing Agent MAY 9 2o o 8 (CORPORATE SEAL) Date ...................................... J City of Tamarac, Purchasing and Contracts Division CORPORATE ACKNOWLEDGEMENT STATE OF :SS COUNTY OF rJW - 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 day of , 2008. ,17 lotarvP_ublic taWAXUjWMnKvi ge MY COMMISSION N DI1709797 G)(r{RES. Nnva�tdMr In, 20I I Y FI Nw.,, Dia BA Aauc. CO i ype ar tamp Name of Notary Public [)Q Personally known to me or ❑ Produced Identification Type of I.D. Produced Qj DID take an oath, or ❑ DID NOT take an oath. N ' GLSC ;A , April 10, 2008 COMPANY, PLLC c�rti.fied public accountants Mr. Jeffrey Miller City Manager City of Tamarac, Florida 7525 N.W. 88"i Avenue Tamarac, Florida 33321-2401 Dear Mr. Miller: 1110 Brickell Avenue, Suite 901 Miami, Florida 33131-3132 Ph: (305) 373-0123 • (800) 330-4728 Fax: (305) 374-4415 www.glsccpa.com We are pleased to confirm our understanding of the services we are to provide City of Tamarac, Florida (the "City") for the years ending September 30, 2008, 2009 and 2010. We will audit the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information, which collectively comprise the basic financial statements, of City of Tamarac as of and for the years ending September 30, 2008, 2009 and 2010_ 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 accompany City's basic financial statements. As part of our engagement, we will apply certain limited procedures to City's RSI. These limited procedures will consist principally of inquiries of management regarding the methods of measurement and presentation, which management is responsible for affirming to us in its representation letter. Unless we encounter problems with the presentation of the RSI or with procedures relating to it, we will disclaim an opinion on it. 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 Contributions on Employees' Pension Funds Supplementary information other than RSI, such as combining and individual fund financial statements, also accompanies the City's basic financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and will provide an opinion on it in relation to the basic financial statements: 1) Schedule of expenditures of federal awards and state financial assistance projects 2) Combining and individual fund financial statements and schedules The following additional information accompanying the basic 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 disclaim an opinion. 1) Introductory section 2) Statistical section 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 additional information referred to in the first paragraph when considered in relation to the basic financial statements taken as a whole. The objective also includes reporting on — An Indcpcndent Member of B K R Firms In Principal Cities Worldwide Mr. Jeffrey Miller City of Tamarac, Florida Page 2 • Internal control related to the financial statements and compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants, 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 for the information and use of the audit committee, management, specific legislative or regulatory bodies, federal and state 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 U.S. generally accepted auditing standards; 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; 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 Circular A-133 and Chapter 10.550, 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. Management Responsibilities Management is responsible for establishing and maintaining internal controls, including monitoring ongoing activities; 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, 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 federal and state award program compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is responsible for the basic financial statements and all accompanying information as well as all representations contained therein. You are responsible for management decisions and functions. As part of the audit, we will prepare a draft of your financial statements, schedule of expenditures of federal awards and state financial assistance projects, and related notes. In accordance with Government Auditing Standards, you will be required to review and approve those financial statements prior to their issuance and have a responsibility to be in a position in fact and appearance to make an informed judgment on those financial statements. Further, you are required to designate a qualified management -level individual to be responsible and accountable for overseeing our services. Management is responsible for making all financial records and related information available to us, including identifying significant vendor relationships in which the vendor has the responsibility for program compliance and for the accuracy and completeness of that information. Management's responsibilities include adjusting the financial statements to correct material misstatements and for 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 hole. GLSC & COMPANY, PLLC "? ? certified public accountants u Mr. Jeffrey Miller City of Tamarac, Florida Page 3 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, 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. Management is responsible for establishment and maintenance of a process for tracking the status of audit findings and recommendations. Management is also responsible for identifying for us previous audits or other engagements or 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 or other engagements 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, and the timing and format related thereto. 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. 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, 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 also require certain written representations from you about the financial statements and related matters. a GLSC & COMPANY, PLLC certified public accountants Mr. Jeffrey Miller City of Tamarac, Florida Page 4 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. As required by OMB Circular A-133 and Chapter 10.550, 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 and state financial assistance projects. 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. 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 professional standards, Government Auditing Standards, and OMB Circular A-133. Audit Procedures-•—Compllance As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of City'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 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 test of transactions and other applicable procedures described in the OMB Circular A-133 and Chapter 10,550 Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of City's major programs. The purpose of those procedures will be to express an opinion on City'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. GLSC & COMPANY, PLLC '; certified public accountants Mr. Jeffrey Miller City of Tamarac, Florida Page 5 Audit 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. At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection Form that summarizes our audit findings. We will provide an original and print -ready master of our reports to the City; however, 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 a corrective action plan) along with the Data Collection Form to the designated federal clearinghouse and, if appropriate, 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. At the conclusion of the engagement, we will provide information to management as to where the reporting packages should be submitted and the number to submit. The audit documentation for this engagement is the property of GLSC and Company, PLLC and constitutes confidential information. However, we may be requested to make certain audit documentation available to governmental agencies pursuant to authority given to them by law or regulation. We will notify you of any such request. If requested, access to such audit documentation will be provided under the supervision of GLSC and 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. If we are aware that a federal or state 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. Our fees for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, typing, postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including expenses, will not exceed $99,500, 104,500 and 110,000 for the years ending September 30, 2008, 2009 and 2010, respectively. 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. w,. GLSC & COMPANY, PLLC certified public accountants Mr. Jeffrey Miller City of Tamarac, Florida Page 6 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 report and letter of comment accompanies this letter. We appreciate the opportunity to be of service to City of Tamarac 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 AND COMPANY, PLLC (Formerly BKR Garcia and Company, PLLC) i Pablo R. Llerena, CPA RESPONSE: This letter correctly sets forth the understanding of City of Tamarac By: Title: Jeffrey L, Miller Ci Manager Date: ,44 GLSC & COMPANY, PLLC `4 �'; certified public accounranis 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. + r �Certr red Public ountants r 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. 9�a L Certified public ountants •l 2101 SFtnor BYE .n;jran PRODUCER (954)382-4350 FAX C954)3,S2-2910 SETNOR BYER INSURANCE & R15K 7901 SW 6th Court Suite 430 Plantation, FL 33324 INsuRCo GESC & Company, PLLC 1110 BRICKELL AVE. STE 901 Suite 901 MIAMI,, FL 33131 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES INOT AMEND, EXTEND OR ALTER THE COVERAGE .AFIFUROED BY HE POLICIES BELOW. INSURERS AFFORDING COVERAGE NAIC # INSURERA Hartford Casualty Ins Co 29424 INSURER 8: INSURER C: n(.9URER D. INSURER E' c THE vF-RAG.ES POLICIES OF IN13URANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICTED, NOTWITHSTAtJOING ANY REQUIREMENT TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY SE ISSUED OR MAY PERTAIN, T HF INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUS1014S AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR OD' TYPE OF INSURANCE POLICI NVIM9ER POLICY EFFECTIVE iPOLICY w&Qv TIDRI LIGHTS cENERALuaeIWrY —ILU21SBARMS294 01/01/20D6 01/O1/2009 EACH OCDUPwE7JCE £ 1,000 000 DAMAGE TO RENTED x 500,000 X COPA+IENCIAI QENERAL LIA0111TY MED EXP (Any onn FW9oA) t 10,00 CI AIMS MADE I ^ I OCCUR P'BRSONAL & ADV 1INJWRY t 1 000 , 00 A nENERA1+rrsREGATE s 2,000 00 GCN'L AGGREGAIfE WHIT APPLIES PER!PRODUCTS -COMPIDP AGG $ 2,000,00C POLICY' JEC'I LOC AUTOMOBILra UABILrrY 2MARMS294 01/01/2009 01/01/2009 COMBINED SINGLE LIMIT 7 (EA scelam) 1, 0001 000 ANY AUTO 900ILY0,JWRY $ ALL OWNEDAUTO3 tPor person} SCHEDULED AUTOS A X HIREDALROS BOOILvW.IuRY T x 'NOWOWNEDAUTOS (Pnrac Mann PRO0ERTYOAISAGE S (Por neeidanl) GARAGE WADILI.TY AUTO ONLY - EA ACCIDENT S OTHER THAN EA ACC I ANY AUTO j AUTO ONLY AGG EXCESWUMPRELLA LIA9WTY 21SBARMS294 01/01/2008 1 01/01/2009 EACH OCCURRENCE t 2,000,000 AGGREA",,A,TE i 2 , 000 , 000 OCCUR El CLAIMS MADE S A ; OEDUCTIBLE r I X RETENTION t 10,00 we 5TA7V- arw• RCE WORKERS COMPENSATION AND E.L, EACH ACCIDENT S EMPLOYERS LIAIINUIV ANY PROPRIETORRP.ARTNEfL67(ECI)TIVC OFFICERLMI:M05R EYCLUDED'1 E.L. DISEASE -EA EMPLOYE .t E.L DISEASE - POWCY LIMIT ; If yos, dMeribe Wndor SPECIAL PROV1810NS tr41&w OTNER DESCRIPTION OF OFERKNONS I LOCATIONS I VEHICLES r EXCLUSIONS ADbQ06Y EN00R96TAENT I $FECIAL PROUPTIONG SHOULD ANY OF THE ABOVE DES CRISE13 POLICIES BE CANCELLEO'BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL City of Tamarac 10 DAYS wrUi1'EN NOTICE Ta THE-CERT0HCATE HOLDER NAMED TO THE'LEFT. Building & Code Compliance Dept 6011 Nob Hill Road BUT FAILURE TO MAIL SUGNiRIOTICF? SFIALLOMPDSE NO OBLIGATION OR LIABILITY 1st Floor OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. Tamarac, IFL 33321-6200 AUTHORIZODAEPRESENTATWE Daniel SaWnders/DA'NNY ACORD 25 42001108) tACORD CORPORATION 1984 iiJill' '0:28AM aEtror .r [ n s u r � r tn. 36 P. [ IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does not confer Rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION 9S WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this,cerUficate does not confer rights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance an the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized Representative or producer, and the,certificatle holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded -by the policies listed thereon. ACORD 25 (2001108) GLSC & COMPANY, PLLC certified public accountants c, uM r Mr. Keith K. Glatz, CPPO Purchasing and Contracts Manager 7525 NW 88th Avenue Tamarac, Florida 33321-2401 RE: Agreement Extension — Amendment # 3 RFP 03-12R, Financial Auditing Services Dear Mr. Glatz: 1110 Brickell Avenue, Suite 901 Miami, Florida 33131-3132 Ph: (305) 373-0123 • (800) 330-4728 Fak: (305) 374-4415 www.glsccpa.com First of all, we want to thank you for the opportunity to continue to serve the City of Tamarac. Enclosed you will find two (2) fully executed originals of the Agreement Amendment #3 between the City of Tamarac and GLSC & Company, PLLC. In addition, we have enclosed an updated Certificate of Insurance. If you have any questions, please let us know. Very truly yours, GLSC & Company, PLLC ewao k&4Ua--' Pablo Llerena, CPA Managing Agent An Independent Member of BKR Firms In Principal Cities Worldwide J° BKR GARciA&ComiPAw certified public accountants it y December 3, 2007 1110 Brickell Avenue, Suite 901 Miami, Florida 33131-3132 Ph: (305) 373-0123 • (800) 330-4728 Fax: (305) 374-4415 www.bkr-garcia.com As part of BKR Garcia & Company, PLLC commitment to keeping our valued clients informed of all industry developments, we are writing to you regarding; a change in regulations governing the accounting profession worldwide by the International Federation of Accountants (IFAC), the European Union and, soon, the American Institute of Certified Public Accountants. As you may be aware, BKR Garcia & Company, PLLC in an independent member of BKR International, a leading global association of independent accounting and business advisory firms. In order to comply with the regulatory change, independent member firms of BKR International, including our firm, will be removing the BKR letters from their names on or before January 1, 2008 and in our case, we are changing the name of the firm to GLSC & Company, PLLC. This change will in no way affect our standing as a member of BKR International. As such, we remain well positioned to continue to offer you all of the services and resources, both domestically and internationally, to fully meet your individual needs. We are grateful for your loyalty and look forward to providing you with the highest level of professional services that you have come to expect. Please do not hesitate to contact me should you have any questions. Sincerely, �f { BKR Garcia & Company, PLLC An Independent Member of BKR IN FHNN "- Firms In Principal Cities Worldwide AC# :::' STATE OF FLORIDA DEPARTMENT OF BUS BOMSS* AND PROYSS91ONAL REGULATION BO OP ACCOUNTANCY SEW L08021101095 CENS 02 11 2008 070353936 IAD64298 The ACCOUNTANCY CORPORATION Named below IS LICENSED Under the provisions of Chapter 473 FS'. Expiration dates DEC 31, 2009 GLSC & COMPANY PLLC 1110 BRICKELL AVENUE SUITE 901 MIAMI FL 33131 CHARLIE GRIST HOLLY BENSON GOVERNOR SECRETARY DISPLAY AS REQUIRED BY LAW CQVER LETTER TO: Registration Section Division of Corporations SUIMECT: BKR GARCIA & COMPANY, PLLC (Name of Limited Liability Company) 'fhe enclosed Articles of Amendment and fee(s) are submitted for filing. Please return all correspondence concerning this matter to the following: MANUEL GARCIA (Name of Person) BKR GARCIA & COMPANY, PLLC A� (Firm/Company) 4 1110 BRICKELL AVENUE SUITE 901 (Address) r*r ) MIAMI, FLORIDA 33131-3132 CD T (( (City/State and Zip Code) b For further information concerning this matter, please call: MANUEL GARCIA at (305) 373-0123 Ext. 107 (Name of Person) (Area Code & Daytime Telephone Number) Enclosed is a check for the following amount: ❑ $25.00 Filing Fee (]S30,00 Filing Fee & 0$55.00 Filing Fee & 0$60.00 Filing Fec. Certificate of Status Ceti if ied Copy Certificate of Status & (additional copy is enclosed) Certified Copy (additional copy is enclosed) MAILING ADDRESS: Registration Section Division of Corporations P.O. Box 6327 Tallahassee, FL 32314 STREET/COURIER ADDRESS: Registration Section Division of Corporations Clifton Building 2661 Executive Center Circle Tallahassee, FL 32301 ARTICLES OF AMENDMENT iro ARTICLES OF ORGANIZATION OF BKR GARCIA & COMPANY, PLLC (Present Name) (A Florida Limited Liability Company) FIRST: The Articles of Organization were filed on May 18, 2005 and assigned document number 95000049175 SECOND: This amendment is submitted to amend the following: Name Chan e - GLSC & Company, PLLC 1 Dated October 29 2007 a member or aut orized representative o a Manuel Garcia Typed or printed name of signee Filing Fee: $25.00 Electronic Articles of Organization L05000049178 FILED 8:00 AM For May 18 2005 Florida Limited Liability Company Sec. Of State Wine Article I The name of the Limited Liability Company is: (T'LS & COMPANY, PLLC Article II The street address of the principal office of the Limited Liability Company is: 1110 BRICKELL. AVENUE PH-2 MIANII, FL, 33131 The mailing address of the Limited Liability Company is: 1110 BRICKELL AVENUE PI-1-2 ML#'vII, FL. 33131 Article III fhe purpose for which this Limited Liability Company- is organized is: TO PROVIDE ACCOUNTING AND RELATED PROFESSIONAL SERVICES TO THE PUBLIC Article IV The name and Florida street address of the registered agent is: MANIJEL M GARCIA 1110 BRICKELL AVENUE PII-2 ),IIAMI, FL. 33131 Ilaving been named as registered agent and to accept service of process for the above stated limited liability company at the place designated in this certificate, I hereby accept the appointment as registered agent and agree to act in this capacity. I further agree to comply with the provisions of all statutes relating to the proper and complete performance of my duties, and I am faYniliar with and accept the obligations of my position as registered agent. Registered Agent Signature. MANUEL, M. GARCIA Article V Fhe name and address of managing me inbe;rshnanagers are: Title: MGRM MANLTEL M. GARCIA, CPA P.A. 1110 BRICKELL AVENUE, PH-2 MIAMI, FL. 33131 Tille: ?MGRM PABLO R. I LERI NA. CPA P.A. 1110 BRICKELL ANTNI TE, PH-2 MIAMI, FL. 33131 "Title: MGRM RICARDO SANTOS, CPA P.A. II10 BRICKEI,I. 1VFNIJF, PI 1-2 MIAMI. FL. 33131 Signature of member or an authorized representative of a member Signature: MANUEL DINER L05000049178 FILED 8:00 AM May Of State Wine