Loading...
HomeMy WebLinkAboutCity of Tamarac Resolution R-2006-060Temp. Reso 10941 —April 7, 2006 Page 1 of 3 Revision 1 —April 11, 2006 CITY OF TAMARAC, FLORIDA RESOLUTION NO. 2006- _ L_0 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXERCISE THE FIRST RENEWAL OPTION TO THE EXISTING AGREEMENT BETWEEN THE CITY OF TAMARAC AND BKR GARCIA COMPANY, PLLC, (FORMERLY GRAU & CO.), FOR ANNUAL AUDITING SERVICES FOR FISCAL YEAR ENDING SEPTEMBER 30, 2006; FOR A NOT TO EXCEED COST OF $89,500, 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 investment advisory services to the City; and WHEREAS, Resolution R-2003-198 dated August 27, 2003, authorized execution of an agreement with Grau & Co., (Contractor) providing for annual auditing services (a copy of said resolution and agreement is hereto attached as Exhibit "A"); and WHEREAS, the City has contracted with Grau & Co., Certified Public Accountants and Consultants, for the past three years to perform the City's independent annual audit; and WHEREAS, the agreement authorized per Resolution R-2003-198 dated August 27, 2003 has additional renewal options for subsequent one-year periods; and Temp. Reso 10941 —April 7, 2006 Page 2 of 3 Revision 1 —April 11, 2006 WHEREAS, the firm of Grau & Co., changed their name to BKR Garcia & Company, PLLC, effective January 1, 2006 in accordance with April 15, 2006 correspondence included herein as Exhibit "B"; and WHEREAS, BKR Garcia & Company, PLLC, formerly known as Grau & Co., has provided the City with a Letter of Engagement included herein as Exhibit "C"; and WHEREAS, the letter of Engagement provides for an annual not to exceed fee of $89,500 for the renewal period; and WHEREAS, available funds exist in the current budget for said purpose; and WHEREAS, BKR Garcia & Co., PLLC, formerly known as Grau & Co., has provided qualitative auditing services in accordance with the terms of the agreement; and WHEREAS, the Director of Financial Services and Controller recommend that the agreement with BKR Garcia & Co., PLLC, formerly known as Grau & Co., be extended an additional one 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 BKR Garcia & Co., PLLC, formerly known as Grau & Co., for a period of one year as the City's external Auditor and to authorize the appropriate City officials to execute Agreement Amendment 1, attached hereto as Exhibit I old 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. Temp. Reso 10941 —April 7, 2006 Page 3 of 3 Revision 1 —April 11, 2006 SECTION 2: The appropriate City officials are hereby authorized to exercise the first renewal option between the City of Tamarac, Florida, and BKR Garcia & Co., PLLC, for annual auditing services, and to execute Agreement Amendment .Number 1, attached hereto as Exhibit "D" to renew the Agreement for an additional one 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. SECTION 5: This Resolution shall become effective immediately upon its passage and adoption. PASSED, ADOPTED AND APPROVED this day of r- , 2006. i �s� BETH FLA SBAUM TAL BISCO, MAYOR ATTEST: MARION SWENSON, CMC CITY CLERK I HEREBY CERTIFY that I have approved this RESOLUTION as to form. SAMUEL S. GOREN CITY ATTORNEY RECORD OF COMMISSION VOTE: MAYOR FLANSBAUM-TALABISCO DIST 1: V/M PORTNER DIST 2: COMM ATKINS-GRAD DIST 3: COMM. SULTANOF DIST 4: COMM. DRESSLER 1 Temp Reso *-i 0233-August 26, 2003 Page 1 TR #10941 EXHIBIT A CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2003-� A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING THE APPROPRIATE OFFICIALS TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF TAMARAC AND GRAU & COMPANY, P.A., AS THE CITY'S EXTERNAL AUDITOR FOR A THREE (3) YEAR PERIOD BEGINNING WITH THE FISCAL YEAR ENDING SEPTEMBER 30, 2003, WITH AN OPTION TO RENEW THE CONTRACT IN SUBSEQUENT YEARS AT MUTUALLY ACCEPTABLE TERMS BY BOTH PARTIES; 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 has contracted with Rachlin Cohen & Holtz, LLP, Certified Public Accountants and Consultants, for the past four years to perform the City's independent annual audit and said contract expires with the completion of a financial audit for the fiscal year ending September 30,2002; and WHEREAS, the City Commission and Administration deemed it appropriate to request proposals from accounting firms to ensure continued quality audit services at competitive prices; and I Temp Reso #10233-August 26, 2003 Page 2 WHEREAS, the Audit Services Selection Committee received audit service proposals from accounting firms including Grant Thornton LLP; KPMG LLP; Rachlin Cohen & Holtz LLP; Cherry Bekaert & Holland, LLP; Grau & Company, P.A.; Urbach Kahn & Werlin LLP; and Harvey, Branker & Associates; and WHEREAS, Grant Thornton LLP was rated the highest by the Audit Services Selection Committee; however, mutually acceptable contract terms could not be negotiated; and WHEREAS, the Audit Services Selection Committee after due consideration recommended the award of the audit services contract to the next highest ranked firm, KPMG LLP; and WHEREAS, the City Commission of the City of Tamarac disagrees with the staff recommendation; and WHEREAS, pursuant to Section 7.09 of the City Charter the City Commission may designate an auditing firm annually for a period not to exceed three (3) years; and WHEREAS, upon further review and consideration the City Commission determined to enter into an agreement with Grau & Company, P.A., for auditing services; and WHEREAS, the City Commission of the City of Tamarac, Florida, deems it to be in the best interest of the citizens and residents of the City of Tamarac to provide for the execution of a contract between the City of Tamarac, Florida and Grau & Company, P.A., for an initial period of three years. Temp Resc, 10233-August 26, 2003 Page 3 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 accept and execute an agreement between the City of Tamarac Florida and Grau & Company, P.A., as the City's external auditors for an initial period of three (3) years beginning with the fiscal year ending September 30, 2003, with an option to renew the contract in subsequent years at mutually acceptable terms by both parties, copy of agreement attached hereto as Exhibit 1. 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. 1 Temp Reso #10233-August 26, 2003 Page 4 SECTION 5: This Resolution shall become effective immediately upon its passage and adoption. PASSED, ADOPTED AND APPROVED this 27th day of August, 2003. ATTEST: MARION SWENSON, CMC CITY CLERK I HEREBY CERTIFY that I have approved this RESOLUTION as to form. MITCHELL S. KRAFT CITY ATTORNEY JOE SCHREIBER, MAY R RECORD OF COMMISSION VOTE: MAYOR SCHREIBER DIST 1: COMM. PORTNER DIST 2: COMM. FLANSBAUM-TALABIS DIST 3: COMM. SULTANOF _ DIST 4: V/M ROBERTS City of Tamarac r TR 00941 EXHIBIT A AGREEMENT FOR PROFESSIONAL SERVICES THIS AGREEMENT made and entered into this 2(o4h day of Q 2003, by and between the City of Tamarac, a municipal corporation of the State of Florida with principal offices located at 7525 NW 88th Avenue, Tamarac, FL 33321 hereinafter referred to as CITY, and Grau & Company, P.A., a professional association, with offices located at 1975 E. Sunrise Blvd., Suite 520, Ft. Lauderdale FL 33304, hereinafter referred to as AUDITOR: WHEREAS, the CITY intends to utilize the services of AUDITOR to provide Financial Auditing Services as outlined in the Request for Proposals RFP 03-12R; and, WHEREAS, the CITY requires certain professional services in connection with said Financial Auditing Services; and, WHEREAS, the AUDITOR represents that it is capable and prepared to provide such Services: NOW THEREFORE, in consideration of the promises contained herein, the parties hereto agree as follows: ARTICLE 1 - EFFECTIVE DATE The effective date of this Agreement shall be for a three-year period beginning with fiscal year 2003 through fiscal year 2005, with an option to renew the contract in subsequent years at mutually acceptable terms by both parties. ARTICLE 2 - SERVICE TO BE PERFORMED BY AUDITOR The. AUDITOR shall perform the services in accordance with the provisions contained in the Request for Proposals attached hereto as Attachment "A". Such additional authorizations will be in the form of a Purchase Order. Each Purchase Order will set forth a specific Scope of Services, amount of compensation and completion date. ARTICLE 3 - COMPENSATION The CITY shall pay AUDITOR in accordance with the fee schedule below. Year 1 $77,000 Year 2 $80,000 Year 3 $83,500 ARTICLE 4 - STANDARD OF CARE AUDITOR shall exercise the same degree of care, skill, and diligence in the performance of the Services as is ordinarily provided by a professional under similar circumstances and AUDITOR shall, at no additional cost to the CITY, re -perform services which fail to satisfy the foregoing standard of care. ARTICLE 5 - INDEMNIFICATION AUDITOR shall, in addition to any other obligation to indemnify the CITY and to the fullest extent permitted by law, excepting only such damage solely attributable to the negligence or willful misconduct of the City or its elected or appointed officials and employees, protect, defend, indemnify and hold harmless the CITY, their agents, elected officials and employees from and against all claims, actions, liabilities, losses (including City of Tamarac V P •hasing and Contracts Division economic losses), costs arising out of any actual or alleged: a). Bodily injury, sickness, disease or death, or injury to or destruction of tangible property including the loss of use resulting therefrom, or any other damage or loss arising out of or resulting, or claimed to have resulted in whole or in part from any actual or alleged act or omission of the AUDITOR, any subcontractor, anyone directly or indirectly employed by any of them, of anyone for whose acts any of them may be liable in the performance of the WORK; or b) infringement of patent rights by AUDITOR in the performance of the Work; or c). liens, claims or actions made by the AUDITOR or any subcontractor under workers compensation acts; disability benefit acts, other employee benefit acts or any statutory bar. Any cost of expenses, including attorney's fees, incurred by the CITY to enforce this agreement shall be borne by the AUDITOR. Further, AUDITOR agrees to comply with all laws, statutes, ordinances, governmental administrative orders rules and regulations during the performance of the Work; Upon completion of all Services, obligations and duties provided for in this Agreement, or in the event of termination of this Agreement for any reasons, the terms and conditions of this Article shall survive indefinitely. ARTICLE 6 - INDEPENDENT CONTRACTOR AUDITOR undertakes performance of the Services as an independent contractor and shall be wholly responsible for the methods of performance. The CITY shall have no right to supervise the methods used, but the CITY shall have the right to observe such performance. AUDITOR shall work closely with the CITY in performing Services under 'this Agreement. ARTICLE 7 - COMPLIANCE WITH LAWS In performance of the Services, AUDITOR will comply with applicable regulatory requirements including federal, state, and local laws, rules regulations, orders, codes, criteria and standards. ARTICLE 8 - INSURANCE During the performance of the Services under this Agreement, AUDITOR shall maintain the following insurance polices, and provide originals or certified copies of all policies, and shall be written by an insurance company authorized to do business in Florida. 1. Worker's Compensation Insurance: The AUDITOR shall procure and maintain for the life of this Agreement, Workers' Compensation Insurance covering all employees with limits meeting all applicable state and federal laws. This coverage shall include Employer's Liability with limits meeting all applicable state and federal laws. This coverage must extend to any subcontractor that does not have their own Workers' Compensation and Employer's Liability Insurance. The policy must contain a waiver of subrogation in favor of the City of Tamarac, executed by the insurance company. Sixty-(60) days notice of cancellation is required and must be provided to the City of Tamarac via Certified Mail. 2. Comprehensive General Liability: The AUDITOR shall procure and maintain, for the life of this Agreement, Comprehensive General Liability Insurance, This coverage shall be on an "Occurrence" basis. Coverage z City of Tamarac ue P 'using and Contracts Division shall include Premises and Operations; Independent Contractors' Products and Completed Operations and Contractual Liability with specific reference of Article 5 of this Agreement. This policy shall provide coverage for death, personal injury or property damage that could arise directly or indirectly from the performance of this Agreement. The Minimum Limits of Coverage shall be $1,000,000 per occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. The CITY must be named as an additional insured unless Owners and Contractors' Protective Coverage is also provided, or required. Sixty (60) days written notice must be provided to the CITY via Certified Mail in the event of cancellation. 3. Business Automobile Liability: The AUDITOR shall procure and maintain, for the life of the Agreement, Business Automobile Liability Insurance, 4. Professional Liability (Errors and Omissions) Insurance: $2,000,000 The minimum limits of coverage shall be $1,000,000 per Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. This coverage shall be an "Any Auto" type policy. The CITY must be listed as an Additional Insured under the Policy. Sixty(60) days written notice must be provided to the CITY via Certified Mail in the event of cancellation. In the event that subcontractors used by the AUDITOR do not have insurance, or do not meet the insurance limits, AUDITOR shall indemnify and hold harmless the CITY for any claim in excess of the subcontractors' insurance coverage, arising out of negligent acts, errors or omissions of the subcontractors. AUDITOR shall not commence work under this Agreement until all insurance required as stated herein has been obtained and such insurance has been approved by the CITY. ARTICLE 9 - CITY'S RESPONSIBILITIES The CITY shall be responsible for providing access to all project sites, and providing information on hand that are available in the files of the CITY the exception of the City Attorney's files that are subject to confidentiality. ARTICLE 10 - TERMINATION OF AGREEMENT The obligation to continue Services under this Agreement may be terminated for cause by either party upon seven (7) days' written notice of substantial failure by the other party to perform in accordance with the terms hereof through no fault of the terminating party. CITY shall have the right to terminate this Agreement or suspend performance thereof without cause for the CITY's convenience upon written notice to AUDITOR, and AUDITOR shall terminate or suspend performance of Services on a schedule acceptable to CITY. In the event of termination or suspension for CITY's convenience, CITY shall pay AUDITOR for all Services performed through the date of notice of termination or suspension. City of Tamarac Pi using and Contracts Division ARTICLE 11 - NONDISCLOSURE OF PROPRIETARY INFORMATION AUDITOR shall consider all information provided by CITY and all reports, studies, calculations, and other documentation resulting from the AUDITOR's performance of the Services to be proprietary unless such information is available from public sources. AUDITOR shall not publish or disclose proprietary information for any purpose other than the performance of the Services without the prior written authorization of CITY or in response to legal process. ARTICLE 12 - UNCONTROLLABLE FORCES Neither the CITY nor AUDITOR shall be considered to be in default of this Agreement if delays in or failure of performance shall be due to Uncontrollable Forces, the effect of which, by the exercise of reasonable diligence, the non -performing party could not avoid. The term "Uncontrollable Forces" shall mean any event which results in the prevention or delay of performance by a party of its obligations under this Agreement and which is beyond the reasonable control of the nonperforming party. It includes, but is not limited to fire, flood, earthquakes, storms, lightning, epidemic, war, riot, civil disturbance, sabotage, and governmental actions. Neither party shall, however, be excused from performance if nonperformance is due to forces, which are preventable, removable, or remediable, and which the nonperforming party could have, with the exercise of reasonable diligence, prevented, removed, or remedied with reasonable dispatch. The. nonperforming party shall, within a reasonable time of being prevented or delayed from performance by an uncontrollable force, give written notice to the other party describing the circumstances and uncontrollable forces preventing continued performance of the obligations of this Agreement. ARTICLE 13 - GOVERNING LAW AND VENUE This Agreement shall be governed by the laws of the State of Florida. Any and all legal action necessary to enforce the Agreement will be held in Broward County and the Agreement will be interpreted according to the laws of Florida. ARTICLE 14 - MISCELLANEOUS 14.1 Nonwaiver A waiver by either CITY or AUDITOR of any breach of this Agreement shall not be binding upon the waiving party unless such waiver is in writing. In the event of a written waiver, such a waiver shall not affect the waiving party's rights with respect to any other or further breach. The making or acceptance of a payment by either party with knowledge of the existence of a default or breach shall not operate or be construed to operate as a waiver of any subsequent default or breach. 14.2 Severability Any provision in this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provisions in any other jurisdiction. The nonenforcement of any provision by either party shall not constitute a waiver of that provision nor shall it affect the enforceability of that provision or of the remainder of this Agreement. G City of Tamarac 3sing and Contracts Division The provisions of this section shall not prevent the entire Agreement from being void should a provision, which is of the essence of the Agreement, be determined to be void. ARTICLE 16 - INTEGRATION AND MODIFICATION This Agreement is adopted by the CITY and AUDITOR as a complete and exclusive statement of the terms of the Agreement between the CITY and AUDITOR. This Agreement supersedes all prior agreements, contracts, proposals, representations, negotiations, letters or other communications between the CITY and AUDITOR pertaining to the Services, whether written or oral. The Agreement may not be modified unless such modifications are evidenced in writing signed by both the CITY and AUDITOR. ARTICLE 16 - SUCCESSORS AND ASSIGNS The CITY and AUDITOR eac successors, executors, administrators, party to this Agreement and to the assigns, and legal representatives. ARTICLE 17 - CONTINGENT FEES h binds itself and its director, officers, partners, assigns and legal representatives to the other partners, successors, executors, administrators, The AUDITOR warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for the AUDITOR to solicit or secure this Agreement and that it has not paid or agreed to pay any person, company, corporation, individual or firm, other than a bona fide employee working solely for the AUDITOR, any fee, commission, percentage, gift or any other consideration contingent upon or resulting from the award or making of this Agreement. ARTICLE 18 - TRUTH -IN -NEGOTIATION CERTIFICATE Execution of this Agreement by the AUDITOR shall act as the execution of a truth - in -negotiation certificate certifying that the wage rates and costs used to determine the compensation provided for in this Agreement are accurate, complete and current as of the date of the Agreement and that AUDITOR agrees that all charges for services shall be comparable to those charged to any other similarly situated customer served by AUDITOR'S Broward County's office that has in the last 12 months entered into an agreement with AUDITOR under similar circumstances, taking into account level of service provided, qualification and experience of AUDITOR'S personnel assigned to perform the services, scope of the engagement, costs expended to administer the services, frequency of personnel transfers and all other relevant factors, and that AUDITOR shall assign its personnel to the performance of services for taking into account the forgoing factors in the same manner as with such similarly situated customers. The said rates and cost shall be adjusted to exclude any significant sums should the CITY determine that the rates and costs were increased due to inaccurate, incomplete or noncurrent wage rates or due to inaccurate representations of fees paid to outside Auditors. The CITY shall exercise its rights under this "Certificate" within one (1) year following payment. City of Tamarac &I ARTICLE 19 - OWNERSHIP OF DOCUMENTS PL asinq and Contracts Division AUDITOR shall be required to work in harmony with other Auditors relative to providing information requested in a timely manner and in the specified form. Any and all documents, records, disks, original drawings, or other information shall become the property of the CITY upon completion for it's use and distribution as may be deemed appropriate by the CITY. ARTICLE 20 - NOTICE Any notice, demand, communication, or request required or permitted hereunder shall be in writing and delivered in person or sent by certified mail, postage prepaid as follows: AIM City Manager City of Tamarac 7525 NW 88th Avenue Tamarac, Florida 33321-2401 With a copy to the City Attorney at the same address. AUDITOR: Pablo Llerena Partner Grau & Company, P.A. 1975 E. Sunrise Blvd., Suite 520 Ft. Lauderdale, FL 33304 PH: (954) 781-1807 Notices shall be effective when received at the address specified above. Changes in the respective addresses to which such notice may be directed may be made from time to time by any party by written notice to the other party. Facsimile is acceptable notice effective when received, however, facsimiles received (i.e.; printed) after 5:00 p.m. or on weekends or holidays, will be deemed received on the next business day. The original of the notice must additionally be mailed as required herein. Nothing contained in this Article shall be construed to restrict the transmission of routine communications between representatives of AUDITOR and CITY. ARTICLE 21 -- ASSIGNMENT The AUDITOR shall not transfer or assign the performance required by this Agreement without the prior written consent of the City. Any award issued and moneys that become due hereunder are not assignable except with prior written approval of the CITY. 6 City of Tamarac e F using and Contracts Division IN WITNESS WHEREOF, the parties have made and executed this Agreement on the respective dates under each signature. City of Tamarac, through its Mayor and City Manager, and Grau & Company, P.A., signing by and through its Partner, duly authorized to execute same. ATTEST: Marion Swenson, CIVIC City Clerk eX� Date CITY OF TAMARAC Joe Schreiber, Mayor 71a--3 Date Jeffrey L. Viller, City Manager 7/6 Date: d Os to foam and legal pfifficiency: Mitchell S. Kraft, City Attor GRAU & COMPANY, P.A. Company Name Signature of Partner Pablo Llerena Type/Print Name of Partner 8 z(o o 3 CORPORATE SEAL) Date City of Tamarac 0 Pi asing and Contracts Division CORPORATE ACKNOWLEDGEMENT STATE OF FLORIDA SS COUNTY OF B2D--')dY4t: 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 Llerena, Partner, of Grau & Company, P.A., a Professional Association, 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 �h 2( day of , 2003. i nature of Notary Public State of Florida at Large ev ^. Manuel Garda * *My Commission GC871!219 Print, Type or Stamp Name of Notary Public Personally known to me or ❑ Produced Identification Type of I.D. Produced DID take an oath, or ❑ DID NOT take an oath. R Temp Reso #10233 Attachment A REQUEST FOR PROPOSALS `. . <d gyp© RFP 03-1 ZR Financial Auditing Services City of Tamarac Purchasing and Contracts Division 7525 NW 88th Avenue, Boom 108 Tamarac, Florida 33321-2401 (954) 724-2450 Table of Contents RFP 03-14R I. General Information ........................................... ......................... .. I ............................. 4 A. Definitions ....................................................................................... 4 B. Purpose .................................................................................................................. 4 G. Proposal Submission and Withdrawal .............................................................. 4 D. Invitation to Propose ................ _­1 ................. 1-1 .................................. 5 ............. E. Contract Award ......................................... ................. 5 F. Minimum Qualifications...... ..................................... 5 G. Development Costs ............................................................................................ __5 H. Inquiries .......................................................................... .................................. _.. 6 1. Timetables ..................... ...................................... 6 J. Addenda ......................................................... .................................... 6 K. Insurance Requirements ................................................................. ...................... 7 L. Licenses ............................... I .......... 9 M. Public Entity Crimes ............................................. ...................................... ....... _ 9 N - Non -Collusive Affidavit ......................... .......................... _9 O. Drug -Free Workplace ...................... ..................................................................... 10 ►I. Nature of Services Required ....... ..................................................... ................ 10 A. Work Objective .................................................................. ............................... 10 B. Scope of Work to be Performed ........................................................................... 10 C. Auditing Standards ............ ............................................................. ......... _'. 11 D. Reports ............................................. ................ ....................... .......... ........... 11 E. Special Considerations and Services ........................... ........................................ 12 F. Working Papers..., ........................................................ _ ..................................... 13 Ill. Assistance to be Provided .......................... _-_ ......................................................... 14 A. Finance Department and Clerical Assistance .................................................. _.. 14 B. Information Technology Assistance ...................................................................... 14 C. Work Area ................................ ....................................... ................ .................. 14 D. Report Preparation ................ ............... ....................... ...... ............................... 14 IV. Description of Government. .... ....................... ........................................................ 14 A. Background Information ........................................ ............. ............... ....14 B. Fund Structure ................................. ........... .......... ............................................. 16 C. Budgetary Basis of Accounting ........ .................................................... ............... 16 D. Federal and State Financial Assistance........,... .............. 16 E. Pension Plans ........ ..................... _ ...................................................... 17 F. Component Units ....................................................... .......... ................................ 17 G. Magnitude of Finance Operations ............................................. ............ 17 H. Computer Systems . ... ­ . I .............. ................ I .............................. ........... 18 I. Software ..................................... .............. .............................................. 18 J. Databases ........... * ........... **"** ...... *'*'*'*'*" K. Availability of Prior Audit Reports ........ ........ .............. ........ ­ 18 V. Time Requirements 19 A. Proposal Calendar__ ........ B. Notification and Contract Dates C. Schedule for Conducting Audits D. Date Final Report Due V1. Proposal Requirements.. ................. I ................................. A. Rules for Proposals . .................................................. I ................................. ...... 20 B. Submission of Proposals ...................................................................................... .......................................... 20 C, Technical Proposal ................................................................ 20 0. Sealed Dollar Cost Bid ............................................... ...... ........... ........... 21 VII. Evaluation of Proposals........... ................................................................................... ......... ................................ 24 A. Selection Committee .......................... 25 ......................................... 13. Review of Proposals ........... ............ ....................... 25 ....... C. Evaluation Criteria ..................................................................................... ............................................... ............ 25 D. Oral Presentations ......... �26 .................................................................. E. Final Selection. ­ ................. ................... ......... 27 ­ ................. F. Right to Reject Proposals ....... ........................ 11 ................................... 27 ............................................................................. Appendix A, Organization Chart., ............ 27 ............................... Appendix B, Part 1, Schedule of Fees Form ..................................... 28 .................. Appendix 8, Part 2, Schedule of Fees, All Services ........................................................... 29 ........................ Appendix C, Proposer Warranties........... ................ _ .......... _... _ 30 .......................................................................... Appendix D, Proposal Certification Form _ 31 .......................... Sample Consultant Areem gent... .......................................... ............................ ..............32 ............ Certification Form ............................................................ .............................................. 33-40 Certified Resolution ......................... I— ........ I ........ .... I of 1 O.........................................................................................fferor'sQ ement.,.............. ..................... Non -Collusive Affidavit ............. ............................. I of 5 ....... I ....... Foreign Corporations Statement.......... I ............... ..... I., ................ ............ I of 2 Vendor Drug -Free Wark la -. ...... ...................... .,............. ................ ................. ........ 1 of 1 ...................................... Sample Insurance Certificate .............. ................ .......... 1 of I ....... .............................. ............ 1 of 1 Purchasing and �ontracfs Division DATE: March 3, 2003 City of Tamarac "Committed to Excellence...Alwcys" REQUEST FOR PROPOSALS ALL INTERESTED PARTIES: RFP NO. 03-12R The City of Tamarac, Florida, hereinafter referred to as CITY, will receive sealed Proposals at the office of the Purchasing & Contracts Manager, City Hall, 7525 NW 88th Avenue, Tamarac, Florida 33321-2401, for furnishing the services described below: FINANCIAL AUDITING SERVICES Sealed Proposals must be received by the Purchasing and Contracts Manager, either, by mail or hand delivery, no later than 4:00 p.m. local time on Wednesday, March 26, 2003- A public opening will take place in Conference Room 105 located at City Hall shortly thereafter on the same date. Any Proposals received after 4:00 p.m. local time on said date will not be accepted under any circumstances. Any uncertainty regarding the time a Proposal is received will be resolved against the Offeror. Proposals are subject to all terms and conditions contained in this RFP. CITY reserves the right to reject any or all Proposals, to waive any informalities or irregularities in any Proposals received, to re -advertise for Proposals, to award in whole or in part to one or more Offerors, or take any other such actions that may be deemed to be in the best interests of the CITY - Documents will be available for review and may be obtained from the Purchasing Office at the above address. For inquiries, contact the Purchasing Office at (954) 724-2450, r Lynda S. Flurry, CPPO Purchasing and Contracts Manager Publish Sun Sentinel: 03/02/2003 and 03/09/2003 c:�uc L)morac, rion,Jo 3332I-2d'JI 9 (9$4J 724-245;, S Fux (954) 724-2428 a w•ww.tC)rn0rOC.Org A. DEFINITIONS For the purposes of this consultants, organizations, Request for Proposal. B. PURPOSE I. GENERAL INFORMATION Request for Proposal, "Proposer" shall mean contractors, firms, or other persons submitting a response to this This Request for Proposals (RFP) provides guidelines for the submission of proposals in response to Financial Auditing Services. C. PROPOSAL SUBMISSION AND WITHDRAWAL The CITY will receive proposals at the following address: City of Tamarac Purchasing and Contracts Division Tamarac Municipal Complex 7525 NW 88th Avenue, Room 108 Tamarac, Florida 33321-2401 Please mark the outside of the envelope as follows.- "RFP No. 03-12R, Financial Auditing Services". The envelope shall also include the Proposer's return address. Proposers shall submit one (1) original and nine (9) copies of the proposal in a sealed, opaque envelope marked as noted above. A Proposer may submit the proposal by personal delivery or by mail. THE CITY MUST RECEIVE ALL PROPOSALS BY MARCH 26, 2003 AT 4:00 P.M. The CITY cautions Proposers to assure actual delivery of mailed or hand -delivered Proposals directly to the City's Purchasing and Contracts Division, Tamarac Municipal Complex, 7525 NW 88th Avenue in Tamarac, Florida prior to the deadline set for receiving proposals. Telephone confirmation of timely receipt of the proposal may be made by calling (954) 724-2450, before proposal closing time. A proposal received by the City of Tamarac Purchasing Division after the established deadline will be returned unopened to the Proposer. Proposers may withdraw their proposals by notifying the CITY in writing at any time prior to the deadline for proposal submittal. After the deadline, proposals become a record of the CITY and will not be returned to the Proposers. Upon opening proposals are subject to public disclosure consistent with Chapter 119, Florida Statutes. Proposers must invoke the exemptions to disclosure provided by law in the response to the RFP, and must identify the data or other materials to be protected, state the reasons why such exclusion from public disclosure is necessary and the legal basis for such exemption. D. INVITATION TO PROPOSE The City of Tamarac is requesting proposals from qualified firms of certified public accountants to audit its financial statements for a three (3) year period beginning with the fiscal year ending September 30, 2003. These audits are to be performed in accordance with generally accepted auditing standards and the standards for financial audits set forth in the U.S. General Accounting Office's (GAO) Government Auditin Standards (2002), the provisions of the Federal Single Audit Act Amendments of 1995, U.S. Office of Management and Budget (OMB) Circular Aw133, Audits of State and Local Governments and the -provisions of the Florida Single Audit Act. E. CONTRACT AWARD The City anticipates entering into a contract with the Proposer who submits the proposal judged by the City to be most advantageous. The City anticipates awarding one contract but reserves the right to award more than one if in its best interest. The Proposer understands that this RFP does not constitute an offer or a contract with the Proposer. A contract or agreement shall not be deemed to exist and is not binding until proposals are reviewed and accepted by appointed staff and the best proposal has been identified, approved by the appropriate level of authority within the City and executed by parties. A sample Contract is attached to this RFP. The CITY anticipates that the final contract will be in substantial conformance with the Sample Contract; nevertheless, Proposers are advised that any contract, which may result from the RFP, may deviate from the Sample Contract. The City reserves the right to reject all proposals, to abandon the project and/or to solicit and re -advertise for other proposals. The City may in its discretion waive any informalities and irregularities contained in a proposal or in the manner of its submittal and award a contract thereafter. F. MINIMUM QUALIFICATIONS A firm submitting a proposal must meet the following requirements_ 1. The firm must have been established as a legal entity in the State of Florida and have performed continuous CPA services for a minimum of five (5) years. 2. The firm must also be a member of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. 3. The firm must meet the standards for financial audits contained in Government Auditin Standards issued by the Comptroller General of the United States (the yellow book) and Laws and Rules of Florida Board of Accounting Chapter 455 & 475, F.S. Chapter 21AFAC. G. DEVELOPMENT COSTS Neither the City nor its representatives shall be liable for any expenses incurred in connection with preparation of a response to this RFP. Proposers should prepare their proposals simply and economically, providing a straightforward and concise description of the Proposer's ability to meet the requirements of the RFP. ` 4y� H. INQUIRIES Interested Proposers may contact the City's Purchasing and Contracts Manager, Lynda S. Flurry regarding questions abouttheproposal at the Purchasing and Contracts Division Office, City Hall, 7525 NW 88 Avenue, Tamarac, Room 108, Tamarac, Florida 33321-2401, (954) 724-2450 or by facsimile (954) 724-2408. The Purchasing and Contracts Manager will also receive written requests for clarification concerning the meaning or interpretations of this RFP, until seven (7) days prior to the submittal date. The City may record its responses to inquiries and any supplemental instructions in the form of written addenda. The City may mail or fax said addenda before the date specified for receiving the proposals. Proposers shall contact the City to ascertain whether any addenda have been issued. Failure to do so could result in an unresponsive proposal. Any oral explanation given before the RFP opening will not be binding. All Proposers are expected to carefully examine the proposal documents. Any ambiguities or inconsistencies should be brought to the attention of the City through written communication with the City prior to the opening of the proposals. I. TIMETABLES The City and Proposers shall adhere to the following schedule in all actions concerning this RFP: 1. City issues RFP Monday, March 3, 2003. 2. The City must receive the proposals by 4.-00 P.M., Wednesday, March 26, 2003. 3. The City will review and evaluate the proposals in a timely manner. 4. Anticipated finalist presentations will be the week of April 21, 2003. 5. The City may enter into a contract after obtaining appropriate approvals and conducting negotiations. The City will notify all unsuccessful Proposers. 6. Anticipated contract term will begin upon execution of the engagement letter. 7. Delays The City may delay scheduled due dates if it is to the advantage of the City to do so. The City will notify Proposers of all changes in scheduled due dates by written addenda. J. ADDENDA If revisions become necessary, the City will provide written addenda to all Proposers who have received the RFP. All addenda issued by the City will include a receipt form, which must be signed and included with any proposals that are submitted to the City. In the event multiple addenda are issued, a separate receipt for each addendum must be included with the proposal at the time it is submitted to the City. K. INSURANCE REQUIREMENTS The Proposer, if awarded a contract, shall maintain insurance coverage reflecting the minimum amounts and conditions specified in the attached Sample Contract. In the event the Proposer is a governmental entity or a self -insured organization, different insurance requirements may apply. Misrepresentation of any material fact, whether intentional or not, regarding the Proposer's insurance coverage, policies, or capabilities may be grounds for rejection of the proposal and rescission of any awarded contract. 1. WORKER'S COMPENSATION The Proposer shall procure and maintain, for the life of this Contract/Agreement, Worker's Compensation Insurance covering all employees with limits meeting all applicable state and federal laws. This coverage shall include Employers' Liability with limits meeting all applicable state and federal laws. This coverage shall extend to any subcontractor that does not have their own Workers' Compensation and Employer's Liability Insurance. THE POLICY MUST CONTAIN A WAIVER OF SUBROGATION IN FAVOR OF THE CITY OF TAMARAC, executed by the insurance company. Sixty (60) days notice of cancellation is required and must be provided to the City of Tamarac via Certified Mail. 2. COMPREHENSIVE GENERAL LIABILITY The Proposer shall procure and maintain, for the life of this Contract/Agreement, Comprehensive General Liability Insurance. This coverage shall be on an "Occurrence" basis. Coverage shall include Premises and Operations; Independent Contractors' Products and Completed Operations and Contractual Liability. This policy shall provide coverage for death, personal injury or property damage that could arise directly or indirectly from the performance of this Agreement. The Minimum Limits of Coverage shall be $1,000,000 per occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. The City of Tamarac must be named as an additional insured unless Owners and Contractors' Protective Coverage is also provided, or required. Sixty (60) days written notice must be provided to the City of Tamarac via Certified Mail in the event of cancellation. 3. BUSINESS AUTOMOBILE LIABILITY The Proposer shall procure and maintain, for the life of the Contract/Agreement, Business Automobile Liability Insurance, The minimum limits of coverage shall be $1,000,000 per occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Liability. This coverage shall be an "Any Auto" or "Comprehensive Form" type policy. 5 [01 CI In the event the Proposer does not own any vehicles, we will accept the hired and non -owned coverage in the amounts listed above. In addition, we will require an affidavit signed by the Proposer indicating the following: "Company Name" does not own any vehicles. In the event we acquire any vehicles throughout the term of his Contract/Agreement, "Com an Name" agrees to purchase "Any Auto" or "Comprehensive Form" coverage as of the date of acquisition" Include Proposer's signature on this affidavit. The City of Tamarac must be listed as an Additional Insured under the Policy. Sixty (50) days written notice must be provided to the City of Tamarac via Certified Mail in the event of cancellation. PROFESSIONAL LIABILITY INSURANCE The Proposer shall procure and maintain Professional Liability Insurance for the life of this Contract, plus two (2) years after completion. This insurance shall provide coverage against such liability resulting from this Contract. The minimum limits of coverage shall be not less than $10,000,000 with a deductible not to exceed $25,000. The deductible will be the responsibility of the insured. Professional Liability policies shall include an endorsement whereby the Proposer's professional staff indemnifies and holds harmless the City of Tamarac and each officer, agent and employee of the City of Tamarac against all claims, against any of them, for personal injury or wrongful death or property damage arising out of the negligent performance of professional services or caused by an error, omission or negligent act of the Proposer's professional staff or anyone employed by the Proposer's professional staff. Sixty (60) days written notice must be provided to the City of Tamarac via Certified Mail in the event of cancellation. SUPPLEMENTAL PROVISIONS The following two (2) statements will be utilized whenever any type of insurance is required. These statements should be included on all bid documents. 5.1 The insurance coverage and conditions afforded by this policy(s) shall not be suspended, voided, canceled or modified, except after Sixty (60) days prior written notice by Certified Mail, Return Receipt Requested, has been given to the City of Tamarac's department that originated this contract. 5.2 Certificates of Insurance meeting the specific required provision specified within this Contract/Agreement shall be forwarded to or verified by the City of Tamarac department that originated the contract. and approved prior to the start of any work or the possession of any city property. INDEMNIFICATION/HOLD HARMLESS AGREEMENT Contractor shall, in addition to any other obligation to indemnify the City of Tamarac and to the fullest extent permitted by law, protect, defend. indemnify and hold harmless the City of Tamarac, their agents, elected officials and employees from and against all claims, actions, liabilities, losses (including economic losses), costs arising out of any actual or alleged a) bodily injury, sickness, disease or death, or injury to or destruction of tangible property including the loss of use resulting therefrom, or any other damage or loss arising out of or resulting or claims to have resulted in whole or in part from any actual or alleged act or omission of the Contractor, any subcontractor, anyone directly or indirectly employed by any of them, of anyone for whose acts any of them may be liable in the performance of the Work; or b) violation of law, statute, ordinance, governmental administration order, rule regulation, or infringement of patent rights by Contractor in the performance of the Work; or c) liens, claims or actions made by the Contractor or any subcontractor or other party performing the Work. The indemnification obligations hereunder shall not be limited by any limitation on the amount, type of damages, compensation or benefits payable by or for the Contractor or any subcontractor under worker's compensation acts; disability benefit acts, other employee benefit acts or any statutory bar. Any cost of expenses, including attorney's fees, incurred by the City of Tamarac to enforce this agreement shall be borne by the Contractor. L. LICENSES Proposers, both corporate and individual, must be fully licensed and certified for the type of work to be performed in the State of Florida at the time of RFP receipt. The Proposal of any Proposer that is not fully licensed and certified shall be rejected. M. PUBLIC ENTITY CRIMES In accordance with Florida State Statute 287.133 (2)(a): A person or affiliate who has been placed on the convicted vendor list following a conviction for public entity crime may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to public entity, may not be awarded or perform work as a contractor, supplier, subcontractor, or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Florida Statutes Section 287,017, for CATEGORY TWO for a period of 38 months from the date of being placed on the convicted vendor list. N. NON -COLLUSIVE AFFIDAVIT The Proposer, by affixing its signature to this proposal, certifies that its proposal is made without previous understanding, agreement, or connection either with any previous firms or corporations offering a Proposal for the same items, or with the City. The Proposer also certifies that its proposal is in all respects fair, without outside control, collusion, fraud, or otherwise illegal action. O. DRUG -FREE WORKPLACE Preference shall be given to businesses with Drug -Free Work Place (DFW) programs. Whenever two or more proposals which are equal with respect to price, quality, and service are received by the City for the procurement of commodities or contractual services, a proposal received from a business that completes the attached DFW form certifying that it is a DFW shall be given preference in the award process. II. NATURE OF SERVICES REQUIRED A. WORK OBJECTIVE The City of Tamarac is requesting proposals from qualified firms of certified public accountants to audit its financial statements for a three (3) year period beginning with the fiscal year ending September 30, 2003. These audits are to be performed in accordance with generally accepted auditing standards and the standards for financial audits set forth in the U.S. General Accounting Office's (GAO) Government Auditin Standards, the provisions of the Federal Single Audit Act Amendments of 1996'U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments and the provisions of the Florida Single Audit Act. B. SCOPE OF WORK TO BE PERFORMED The City of Tamarac requires the auditor to express an opinion on the fair presentation of its basic financial statements in conformity with generally accepted accounting principles and the new financial reporting requirement of Governmental Accounting Standards Board Statement No. 34, "Basic Financial Statements — and Management's Discussion and Analysis for State and Local Governments". The Auditor is not required to audit the combining and individual fund and account group financial statements and supporting schedules. However, the Auditor is to provide an "in -relation -to" report on the combining and individual fund financial statements and supporting schedules based on the auditing procedures applied during the audit of the basic financial statements. The Auditor is not required to audit the statistical section of the report. The Auditor shall also be responsible for performing certain limited procedures involving required Management's Discussion and Analysis and the required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. The Auditor is not required to audit the schedule of federal and state financial assistance. However, the auditor is to provide an "in relation -to" report on that supplemental information as well, based on the auditing procedures applied during the audit of the financial statements. The auditor may be requested to perform other auditing services at the discretion of the City, Any such additional work agreed to between the City of Tamarac and the firm shall be performed in accordance with the provisions specified in Section II (A-F) of this Request for Proposal. C. AUDITING STANDARDS TO BE FOLLOWED To meet the requirements of this Request for Proposals, the audit shall be performed in accordance with: 1. Generally accepted auditing standards and Audits of State and Local Governmental Units revised as issued by the American Institute of Certified Public Accountants (AICPA); 2_ Government Auditin Standards, as issued by the Comptroller General of the United States; 3. Circular No. A-133, Audits of State and Local Governments, Office of Management and Budget as well as the following additional requirements; 4. The provisions of the Federal Single Audit Act (as amended); 5. The provisions of the Florida Single Audit Act (as amended); 6. State of Florida Department of Banking and Finance Regulations; 7. Rules of the Auditor General for the State of Florida relating to Section 11.45(3)(a) 4 of the Florida Statutes; and 8. Other applicable federal, state and local laws or regulations . D. REPORTS TO BE ISSUED Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue the following: 1. A report on the fair presentation of the basic financial statements as a whole, in conformity with generally accepted accounting principles. 2. A report on the internal control structure based on the auditor's understanding of the control structure and assessment of control risk. 3. A report on compliance with laws and regulations. 4. A "management letter" required by Section 11.45(3)(a) 4, Florida Statutes. 5. Reports required by the Single Audit Act of 1996 and OMB Circular A-133 to include: a) An "in -relation -to" report on the schedules of federal and state financial assistance. b) An opinion on the financial statements and on the supplementary schedule of expenditures of federal awards. c) A report on compliance and on internal control over financial reporting based on an audit of financial statements performed in accordance with Government Auditing Standards. d) A report on compliance with requirements applicable to each major program and on internal control over compliance in accordance with Circular A-133. � J• e) A schedule of findings and questioned costs. f) Nonreportable conditions discovered by the auditors shall be reported in the management letter required by Florida Statutes 11.45(3)(a)(4), which shall be referred to the report on internal control structure and compliance. Use of the audited Financial Statements, opinions or any of the above named reports will not result in additional compensation unless their use requires additional certification or services on the part of the firm. g) A report on compliance with requirements applicable to State grants and aids appropriations. h) Irregularities and illegal Acts. Auditors shall be required to make an immediate, written report of all irregularities and illegal acts of which they become aware to the Director of .Finance, City Manager and City Commission as appropriate. The auditor shall submit a signed audit report on the fair presentation of the financial statements in conformity with generally accepted accounting principles no later than March 15, for the previous fiscal year ending September 30, along with the required reports on internal control structure and compliance with laws and regulations. E. SPECIAL CONSIDERATIONS AND SERVICES 1. The City of Tamarac will send a comprehensive annual financial report to the Government Finance Officers Association of the United States and Canada for review in the Certificate of Achievement for Excellence in Financial Reporting Program. It is anticipated that the auditor will be required to provide special assistance to the City of Tamarac to meet the requirements of that program by providing technical advice to ensure awarding of certification. 2. The schedules of federal and state financial assistance and related auditor's report, as well as the reports on the internal control structure and compliance, are to be issued in conjunction with the comprehensive annual financial report. 3. The City of Tamarac may, during the period of this contract, prepare one or more official Statements in connection with the sale of debt securities, which will contain the basic financial statements and the Auditor's report thereon. The Auditor shall be required. if requested by the fiscal advisor and/or the underwriter, to issue a "consent and citation of expertise" as the Auditor and The City will periodically require an EDP audit of its Information Systems. This service will include but not be limited to the City's Internet and E-mail use policies and procedures. 4. The City will periodically require an EDP audit of its Information Systems. This service will include, but not be Limited to, the City's Internet and E-mail usage policies and procedures. 5. Review of the financial report of the City filed with the Department of Banking and Finance, State of Florida, pursuant to Section 218.32. Florida Statutes, to verify that it is in agreement with the financial statements for the year ended September 30, 2003. 6, With the change in the Auditor General requirement, the Auditor will also assist in the Financial Condition Assessment. 7. The Auditor will assist the City in complying with changes in reporting requirements to remain in conformity with generally accepted accounting principles. 8. A report on the fair presentation of the basic financial statements for each of the three pension plans in conformity with generally accepted accounting principles. The award of the financial auditing services related to the pension funds must be evaluated and approved by each pension board, F. WORKING PAPER RETENTION AND ACCESS TO WORKING PAPERS All working papers and reports must be retained in accordance with requirements and procedures set forth by the General Records Schedule for Local Government Agencies as promulgated by the Division of Archives, History and Records Management (a division of the Florida Department of State). The auditor will be required to make working papers available, upon request, to the following parties or their designees: 1. City of Tamarac 2. U.S. General Accounting Office (GAO) 3. Cognizant Agency 4. Parties designated by the federal or state governments or by the City of Tamarac as part of an audit quality review process. 5. Auditors of entities of which the City of Tamarac is a subrecipient of grant funds. In addition, the firm shall respond to the reasonable. inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. As requests for copies of working papers are fulfilled, the auditors will be required to notify the Director of Finance of the request, as appropriate. III. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION A. FINANCE DEPARTMENT AND CLERICAL ASSISTANCE The City staff and responsible management personnel will be available during the provision of services to assist the firm by providing information, documentation and explanations. The preparation of confirmations will be the responsibility of the City of Tamarac. B. INFORMATION TECHNOLOGY (IT) SYSTEMS ASSISTANCE Certain IT personnel will be available to assist the auditor in performing the engagement. IT personnel will also be available to prcvide systems documentation and explanations. C. WORK AREA, NETWORK, TELEPHONES, PHOTOCOPYING AND FAX MACHINES The City of Tamarac will provide the auditor with reasonable workspace, desks and chairs. The auditor will also be provided with access to computer network, telephone lines, photocopying facilities and facsimile machines for the on -site audit staff. D. REPORT PREPARATION Auditor shall prepare all individual, combining and entity wide Financial Statements, the Independent Auditor's Report, and notes to the Financial Statements. The City will provide the printed covers, inserts and back covers as well as the transmittal letter, management's discussion and analysis, and information for statistical schedules, Comprehensive Annual Financial Report (CAFR) preparation, editing and printing (60 copies) shall be the responsibility of the auditor. The Auditor shall provide an electronic copy of the CAFR in Acrobat (pdf) format. The cost of this item should be listed separately. However, the City will provide the trial balances for each individual fund. IV. DESCRIPTION OF THE GOVERNMENT A. BACKGROUND INFORMATION The City of Tamarac serves an area of approximately 12 square miles with a population of approximately 56,244. The City of Tamarac's fiscal year begins on October 1 and ends on September 30. The following departments provide direct services to the citizens and their activities are accounted for through the General Fund and Special Revenue Funds: 1. Governmental Services 2- Police (Contractual) 3. Grounds & Streets Maintenance 4- Fire Protection 5. Parks and Recreation 6. Planning/Zoning 7. Building Department 8, Code Enforcement 9. Emergency Medical 10, Recycling 11. Social Services The following departments provide internal support services to the above departments as well as other city departments. They are also accounted for through the General Fund- 1 . City Manager 2. City Commission 3. City Attorney 4. City Clerk 5. Human Resources 6. Finance 7. Management and Budget (a division of Finance) 8. Purchasing and Contracts (a division of Finance) 9. Facilities Maintenance (a division of Public Works) 10, Enterprise Services. a) Stormwater Maintenance b) Water Treatment and distribution system serving approximately 18,000 customers c) Wastewater collection and treatment system serving approximately 18,000 customers The City of Tamarac accounts for the following administrative services in Internal Service Funds: 1. Fleet Services Fund 2. Information Technology Fund 3. Insurance Services Fund Actuarial services for the City of Tamarac's Insurance Services Fund, which includes general liability, workers' compensation, public official, and automobile liability are provided by AMI Risk Consultants, Inc. Another auditing firm provides arbitrage calculation and monitoring services. The City of Tamarac has a total payroll of approximately $20 million covering over four hundred thirty-nine (439) employees. (372 Full-time and 67 Part-time/ temporary)_ The City of Tamarac's General Government is composed of 14 departments. The total operating budget for FY 03 is $70 million and $6 million for capital projects. More detailed information on the government and its finances can be found in the City's Adopted Budget Document, Comprehensive Annual Financial Report, Code of Ordinances, and Administrative .Policies and Procedures Manuals available in the City Clerk's Office and the Finance Department, located at Tamarac City Hall. wV B. FUND STRUCTURE The City of Tamarac uses the following fund types and account groups in its financial reporting: Number of Number with Legally Fund Type/Account Group Funds Adopted Annual Budgets General fund 1 1 Special revenue funds g 7 Debt service funds 2 2 Capital projects funds 3 3 Enterprise funds 2 2 Internal service funds 3 3 Trust and Agency: Expendable trust funds 2 d Nonexpendable trust funds p 0 Pension trust funds 3 N/A Agency Funds g NIA General fixed assets account group 1 N/A General long-term debt account group 1 N/A The City of Tamarac prepares its budget on a basis consistent with GAAP. The City is early implementing GASB 34 for fiscal year ending September 30, 2002. C. BUDGETARY BASIS OF ACCOUNTING The City of Tamarac prepares its budgets on a basis consistent with generally accepted accounting principles (GAAP) for the General Fund, Special Revenue Funds, Debt Service Funds, and Capital Projects Funds. D. FEDERAL AND STATE FINANCIAL ASSISTANCE During the initial fiscal year to be audited, the City of Tamarac will receive financial assistance including but not limited to the following federal or state agencies- 1 - Community Development Block Grant 2. U. S. Department of Justice 3. Federal Emergency Management Association 4. Florida Housing Finance Agency 5. Florida Department of Community Affairs 6. Florida Department of Agriculture 7. Florida Department of Environmental Protection 8. Office of Attorney General E. PENSION PLANS The City of Tamarac participates in the following single employer pension plans. - Plan Defined Defined Deferred Benefit Contribution Compensation General Employees Pension Fund* Police Officers Pension Fund* Firefighters Pension Fund* Appointed Officials/Executive/ Administrative/Management (401)(A) Plans Deferred Compensation Plans (457) *Steven 1. Gordon, CPA, provides auditing services for these funds. Actuarial services for these plans are provided by Southern Actuarial Service, Inc. F. COMPONENT UNITS The City of Tamarac is defined for financial reporting purposes, in conformity with the Governmental Accounting Standards Board's Codification of Governmental Accounting and Financial Re ortin Standards, Section 2100. Using these criteria, Component units are included in the City of Tamarac's financial statements. G. MAGNITUDE OF FINANCE OPERATIONS The Finance Department is headed by Dona J. Newman, CPA, Director of Finance, and consists of twenty-nine (29) employees. The number of employees assigned to each division is as follows' Function Administration Accounting & Financial Reporting Management & Budget Purchasing & Contracts Customer Service Total Number of Employees 3 8 4 5 9 29 H. COMPUTER SYSTEMS Information Technology Services provides the information system computer support and related services through the use of a centralized computer system, distributed microcomputer systems connected via a high speed fiber optic network, software applications, programming, training, equipment support, telecommunications systems, and other technologies and, services to City departments. The City of Tamarac's network consists of the following systems: • (1) AS 400/9406 820 Midsize Computer and Peripheral Equipment • (1) AS 400/9406 270 Midsize Computer and Peripheral Equipment • (17) Network Servers (15 Dell & 2 Gateway) • (205) P. C.'s (Gateway, Dell) • (65) Laser Printers • (4) Color Laser Printers • (4) Plotters The current applications running on the City of Tamarac's AS/400 system are - I. SOFTWARE VENDOR MAJOR APPLICATIONS HTE GMBA (GL, AP, Budget, Projects), Extended Reporting, Purchasing/Inventory, Bids, Asset Management it, Miscellaneous Receivable, Loans Module, Cash Receipts, Payroll/Personnel, Applicant Tracking, Land Management, Building Permits, Code Enforcement, Business Licenses, Planning & Zoning, Customer Information System, Work Order/ Facilities Management, Fleet Management, Fuel Interface, GUI 400 Server, GUI 400 Client, FIRES Management System, BP, Parks & Recreation, Click to Gov, Human Resources System Microsoft SQL, Exchange, SNA, Proxy, Windows 2000 Servers J. DATA BASES TYPE USES ACCESS Integrated Financial and City Wide -all administration Via multilevel Administration (Relational-AS/400) and management information password and station K. AVAILABILITY OF PRIOR AUDIT REPORTS AND WORKING PAPERS Interested Proposers who wish to review prior years' Comprehensive Annual Financial Reports (CAFR) . and management letters should contact William Nealon, Jr., CPA, Controller, at the City of Tamarac, 7525 NW 88th Avenue, Tamarac, Florida 33321- 2401, (954) 724-1317. The City of Tamarac will use its best efforts to make prior audit reports and supporting working papers available to Proposers to aid their response to this Request for Proposal. V. TIME REQUIREMENTS A. PROPOSAL CALENDAR Request for Proposals Issued March 3, 2003 Due Date for Proposals March 26, 2003 B. NOTIFICATION AND CONTRACT DATES Finalist Presentations April 21, 2003 (Week Of) (To include personnel assigned to the engagement) The City will review and evaluate the proposals in a timely manner. Final Contract Approved by City Commission May 14, 2003 City reserves the right to change and/or delay scheduled dates. C. SCHEDULE FOR CONDUCTING AUDITS During the second and third years of the Financial Auditing Services contract, the Auditor shall complete each of the following no later than the dates indicated below. Due to the proposal due date for fiscal year 2003 (first year of the contract), these dates will. be determined by mutual agreement during contract negotiations. 1. Interim Work The Auditor shall complete interim work by August 3151 , 2. Detailed Audit Plan The Auditor shall provide the City of Tamarac by July 31st, both a detailed audit plan and a list of all schedules to be prepared by the City of Tarnarac. 3. Fieldwork The Auditor shall complete all fieldwork by January31". 4. Draft Reports The auditor shall have drafts of the audit report and recommendations to management available for review by March 10" D. DATE FINAL REPORT IS DUE It is anticipated that the auditor will deliver the opinion letter, management letter, and all requested reports on or around February 281" of each year, VI. A. RULES FOR PROPOSALS PROPOSAL REQUIREMENTS The proposal must name all persons or entities interested in the proposal as principals. The proposal must declare that it is made without collusion with any other person or entity submitting a proposal pursuant to this RFP. B. SUBMISSION OF PROPOSALS The following should be submitted for a proposing firm to be considered: 1. An original copy (so marked) of a Technical Proposal and nine (9) copies to include the following: a) Title Page. Title page showing the request for proposals' subject, the firm's name, the name, address and telephone number of contact person, and the date of the proposal. b) Table of Contents. The table of contents of the proposal should include a clear and complete identification of the materials submitted by section and page number. c) Transmittal Letter. This letter will summarize in a brief and concise manner the Proposer's understanding of the work to be performed, the commitment to perform the work within the anticipated time period, a statement why the firm believes itself to be best qualified to perform the engagement, and a statement that the proposal remains in effect for ninety (9a) days. An authorized agent of the Proposer must sign the Letter of Transmittal indicating the agent's title or authority. d) Detailed Pro osal. The detailed proposal should follow the order set forth in Section VI (C) of this Request for Proposal. e) Statement acknowledging receipt of each addendum issued by the City. 2. Proposals must be submitted in a sealed envelope clearly marked with the name of the audit firm, "Request for Proposal 03-12R, Financial Auditing Services, March 26, 2003." 3. The following documents (except the Certificate of Insurance), are attached and shall be executed and submitted as a condition of this offer: a) Proposal b) Offeror's Certification c) Certified Resolution d) Offeror's Qualification Statement e) Non -Collusive Affidavit f) Foreign Corporation Statement g) Vendor Drug Free Workplace Statement h) Proof of Insurance . M C. TECHNICAL PROPOSAL 1. General Requirements The purpose of the technical proposal is to demonstrate the qualifications, competence, and capacity of the firms seeking to undertake an independent audit of the City of Tamarac in conformity with the requirements of this Request for Proposal. As such, the substance of proposals will carry more weight than their form or manner of presentation. The technical proposal should demonstrate the combined qualifications of the firms and of the particular staff to be assigned to this engagement. It should also specify an audit approach that will meet the Request for Proposal requirements. The technical proposal should address all of the points outlined in the Request for Proposal. The proposal should be prepared simply and economically, providing a straightforward, concise description of the Proposer's capabilities to satisfy the requirements of the Request for Proposal. While additional data may be presented, the following subjects, items 2 through 9, must be included. There should be no dollar units or total costs included in the technical proposal document. 2. Independence a) The firm shall provide an affirmative statement that it is independent of the City of Tamarac as defined by generally accepted auditing standards and the U.S. General Accounting Office's Government Auditing Standards. b) The firm should list and describe the firm's professional relationships, if any, involving the City of Tamarac for the past five (5) years. 3. License to Practice in Florida An affirmative statement must be included indicating that the firm and all assigned key professional staff are properly registered/licensed to practice in Florida. 4. Firm Qualifications and Experience a) The proposal should state the size of the firm, the size of their fin-n's governmental audit staff, the location of the offices from which the work on this engagement is to be performed and the number and nature of the professional staff to be employed in this engagement on a full-time basis, the number and nature of the staff to be so employed on a part-time basis and a delineation of the responsibilities by firm. b) The firm shall also provide information on the results of any federal or state desk reviews or field reviews of its audits during the past three-(3) years. In addition, the firm shall provide information on the circumstances and status of any disciplinary action taken or pending against the firm or any of the professional staff during the past three (3) years with state regulatory bodies or professional organizations. c) The firm shall also describe any litigation or proceeding whereby, during the past two years, a court or any administrative agency has ruled against the firm in any manner related to its professional activities. Similar information shall be provided for any current or pending litigation. Failure to return this information with your proposal will result in the rejection of your proposal. 5. Partner, Supervisory and Staff Qualifications and Experience a) The proposal shall identify the principal supervisory and management staff of engagement office, including engagement partners, managers, other supervisors and specialists, who would be assigned to the engagement and indicate whether each such person is licensed to practice as a Certified Public Accountant in Florida. The proposal shall also include information on the governmental, utility and electronic data processing auditing experience of each person on the team, including information on relevant continuing professional education for the past three (3) years and membership in professional organizations and on standards setting advisory boards and committees relevant to the performance of this audit. As much information as possible should be provided, regarding the number, qualifications, experience and training of the specific staff to be assigned to this engagement. The proposal shall also indicate how the quality of staff over the term of the agreement will be assured. b) Engagement partners, managers, other supervisory staff and specialists may be changed with the express prior written permission of the City of Tamarac if those personnel leave the firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons. In either case, the City of Tamarac retains the right to approve or reject replacements. 6. Similar Engagements with Other Government Entities a) For the engagement office assigned responsibility for the audit, list and rank the five (5) most significant engagements performed in the last five years that are similar to the engagement described in this Request for Proposal. These engagements should be ranked on the basis of total staff hours. b) Indicate the scope of work, date, engagement partners, total hours, and the name and telephone number of the principal client contact. The City reserves the right to contact the above -mentioned references and any other clients. 7. Conflict of Interest a) The proposal must also disclose any potential conflicts of interest due to any other client's contract or property interests or include a notarized statement certifying that no member of you, firm's ownershi mans ement or staff cur,ently have a vested interest which might be considered a conflict of interest. Any potential conflict of interest listed by a firm will be'reviewed by the City Attorney to determine its substantiveness. If the conflict of interest is found to be substantive, the proposal will be rejected. 8. Specific Audit Approach The proposal must set forth a work plan, including an explanation of the audit methodology to be followed to perform the services required in Section 11 of this Request for Proposal. In developing the work plan, reference should be made to such sources of information as the City of Tamarac's budget and related materials, organizational charts, manuals, programs, and other financial and management information. Proposers will be required to provide the following information on their audit approach. a) Proposed segmentation of the engagement. b) Staffing assignments and levels to be designated to each proposed segment of the engagement. c) Extent of evaluation and use of electronic data processing software in the engagement. d) Approach to be taken to gain and document an understanding of the City of Tamarac's internal control structure. e) Approach to be taken in determining laws and regulations that will be subject to audit test work. f) Approach to be taken in determining audit samples for purposes of test compliance. g) Approach to be taken in completing Federal and State Single Audit. 9. Proof of Professional Liability Insurance Firms shall provide proof that they are in compliance with the insurance requirements as described in Section I (K) regarding minimum coverage for Professional Liability Insurance, M Identification of Anticipated Potential Audit Problems The proposal should identify and describe any anticipated potential audit problems, the firm's approach to resolving these problems and any special assistance that will be requested from the City of Tamarac. 11. Additional Information This section shall include the following items: a) Provide a summary of any litigation filed against the Proposer in the past three years that is related to the services that Proposer provides in the regular course of business. The .summary shall state the nature of the litigation, a brief description of the case, the outcome or projected outcome, and the monetary amounts involved. b) Provide a financial statement, annual report, or other similar evidence of Proposer's financial stability. c) Identify the type of business entity involved (e.g„ sole proprietorship, partnership, corporation, etc.). Identify whether the business entity is incorporated in Florida, another state or a foreign country. d) Provide the Federal Employer ID number of the Proposer. e) Any additional information, which the Proposer considers pertinent for consideration, should be included in this part of the proposal. No dollars should be included in the technical proposal. D. SEALED DOLLAR COST BID (To be submitted in separate, sealed envelope) I. Total Alf -Inclusive Maximum Price a) The sealed dollar bid should contain all pricing information relative to performing the audit engagement as described in this Request for Proposal. The total all-inclusive maximum price to be bid is to contain all direct and indirect costs including all out-of-pocket expenses. b) The City of Tamarac will not be responsible for expenses incurred in preparing and submitting the technical proposal or the sealed dollar cost bid. Such costs should not be included in the proposal. 2. The first page of the sealed dollar bid should include the following information: a) Name of Firm b) Certification that the person signing the proposal is entitled to represent the firm, empowered to submit the bid and authorized to sign a contract with the City of Tamarac. c) A total all-inclusive maximum price for the 2003 engagement. 3. Rates by Partner, Specialist, Supervisory and Staff Level Times Hours Anticipated for Each The second page of the sealed dollar cost bid should include a schedule of professional fees and expenses, presented in the format provided in the attachment (Appendix B, Part 1), that supports the total all-inclusive maximum price. The cost of special services described in Section II (E) of this Request for Proposal should be disclosed as separate components of the total all-inclusive maximum price using the formats provided in Appendix B, Part 2. 4. Out -of -Pocket Expenses Included in the Total All -Inclusive Maximum Price and Reimbursement Rates a) Out-of-pocket expenses for firm personnel (e.g., travel, lodging and subsistence) will be reimbursed in accordance with Section 112.061, Florida Statutes. All estimated out-of-pocket expenses to be reimbursed should be presented in the sealed dollar cost bid in the format provided in the attachment (Appendix 6). All expense reimbursements will be charged against the total all-inclusive maximum price submitted by the firm. b) In addition, a statement must be included in the sealed dollar cost bid stating that travel, lodging and subsistence expenses included in the total all-inclusive price are in accordance with Section 112.061, Florida Statutes, 5. Rates for Additional Professional Services If it should become necessary for the City of Tamarac to request the Auditor to render any additional services to either supplement the services requested in this Request for Proposal or to perform additional work as a result of the specific recommendations included in any report issued on this engagement, then such additional work shall be performed only upon a written agreement between the City of Tamarac and the firm. Any such additional work agreed to between the City of Tamarac and the firm shall be performed at the same rates set forth in the schedule of fees and expenses included in the sealed dollar cost bid. 6. Pricing for Contract Years 2 and 3 Use the lower section of Appendix B, Part 1, to provide the total all-inclusive price for contract years 2 and 3. If the proposed hourly rates used to calculate the total all-inclusive price for any contract year are different from contract year 1 rates, provide an index for those years or provide rates for each staff level and each contract year for which there is a change. Also include a statement as to whether those rates will be applicable for any additional professional services which may be requested during those contract years. 7. Manner of Payment Payments will be based on a schedule of payments to be developed upon awarding of the contract. The City reserves the right to inspect records supporting the Auditor's billings. VII. EVALUATION OF PROPOSALS A. SELECTION COMMITTEE Proposals submitted will be evaluated by a Selection Committee appointed by the City of Tamarac. B. REVIEW OF PROPOSALS The Selection Committee will use a point formula during the review process to score proposals. Each member of the Selection Committee will first score each technical proposal by each of the criteria described in Section VII (C) below. The full Selection Committee will then convene to review and discuss these evaluations and to combine the individual scores to arrive at a composite technical score for each firm. At this point, firms with an unacceptably low technical score will be eliminated from further consideration. After the composite technical score for each firm has been established, the sealed dollar cost bid will be opened and additional points will be added to the technical score based on the price bid. The maximum score for price will be assigned to the firm offering the lowest total all-inclusive maximum price. Appropriate fractional scores will be assigned to other Proposers. The City of Tamarac reserves the right to retain all proposals submitted and use any idea in a proposal regardless of whether that proposal is selected. z�, , " zj-- C. EVALUATION CRITERIA Proposals will be evaluated using three sets of criteria. Firms meeting the mandatory criteria will have their proposals evaluated and scored for both technical qualifications and price. The following represent the principal selection criteria, which will be considered during the evaluation process. 3 t 1. Mandatory Elements a) The audit firm is independent and licensed to practice in Florida. b) The audit firm's professional personnel have received adequate continuing Professional education within the preceding two years as defined by the U.S. General Accounting (GAO) Government Auditing Standards. c) The firm has no conflict of interest with regard to any other work performed by the City of Tamarac. d) The firm submits a copy of its most recent external quality control review report and the firm has a record of quality audit work. e) The firm adheres to the instructions in this Request for Proposal on preparing and submitting the proposal. 2. Technical Qualifications: (Maximum Points = 70) a) Expertise and Experience (Maximum Points = 40) i. The firm's past experience and performance on comparable government engagements. ii. The quality of the firm's professional personnel to be assigned to the engagement and the quality of the firm's management support personnel to be available for technical consultation. iii. The quality and experience of the firm's professional auditing personnel to be assigned to perform the Single Audit. iv. The quality and experience of the firm's EDP auditing personnel assigned to the engagement, b) Audit Approach, (Maximum Points = 30) i. Adequacy of proposed staffing plan for various segments of the engagement. Adequacy of the general audit plan for the overall engagement. Adequacy of analytical procedures and sampling techniques. iv. Adequacy of the audit plan for the Single Audit. Responses to References: (Maximum Points = 10) Price: (Maximum Points = 20) Cost will not be the primary factor in the selection of an audit firm. 4 D. ORAL PRESENTATIONS During the evaluation process, the Selection Committee may, at its discretion, request firms to make oral presentations. Such presentations will provide firms with an opportunity to answer any questions the Selection Committee may have on a firm's proposal. Not all firms may be asked to make such oral presentations. E. FINAL SELECTION The City of Tamarac will select the firm, which meets the best interests of the City. The City shall be the sole judge of its own best interests, the proposals, and the resulting negotiated agreement. The City's decisions will be final. F. RIGHT TO REJECT PROPOSALS Submission of a proposal indicates acceptance by the firm of the conditions contained in this Request for Proposal unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the City of Tamarac and the firm selected. The City of Tamarac reserves the right without prejudice to reject any or all proposals. C APPENDIX A City of Tamarac Organizational Chart Citizens of Tamarac I City Commission City Attorney City Manager Boards and Committees Building Permitting Inspections Certificates of Occupancy Fire Emergency Medical services Fire SupreSSion Fire Prevention Training City Clerk Elections Records. D,tanagement Minutes Preparation Desktop Publishing Mail Poom Information Technology -- LrzerApplications :Ind S'i.jr,porr —Technical Support — S,Istems CrewelnprnFnt Public Works EnaineEring �r0uncty fvldr,llen:±nee wir�4fS Flee? Services F;rilit; tvlonagen-�n? Wlcirnrdater Nlar:,,r?mEnt Public Information Community Development --Planning and Zoning `Code Enforcement —G?ooraph�_ Information' ystems Economic. 11evelopmen Parks and l Recreation (� Recreatior, .w,Aimties Parks tvlarnt�-.nance Social Services Information, Referral and Cutrench TranS,;�Gr",bUon AEsistinr g Utilities l tEr Ciist,itutic,n 1 L 'v,, lewater CGll.rpnn Vv,.iar 4cc�un?.3 Ilttr' C J; tourer Service _._'MilvAz;urance 1'11rrJ EnginFBnn'.i Finance .Accounting tv131"Agerncnt and Budget Purcha;inr� Custor'ner Seo•:•ice Satellite City Half Human Resources Recruitment and — Selecti�n Classiriralion ano Pay ` Labor P'el,aiir)ns - Benefits - Training -Risk Management Casualty InSur+nce Programs caf&� APPENDIX B •t2iJ SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE SEPTEMBER 30, 2003 - 2005 FINANCIAL STATEMENTS: SUPPORTING SCHEDULE FOR AUDIT SERVICES HOURS PROPOSED HOURLY RATES PROPOSED TOTAL FPartnersry Staff Other (specify) Subtotal Other Expenses (specify): 11 Total Price for Audit Services Year 1 Year 2 Year 3 11 Grand Total Price for Audit Services (3 Years) I NOTE: If the proposed hourly rates used to calculate the total all-inclusive price for any contract year are different from contract year 1 rates, provide an index for those years or provide rates for each staff level and each contract year for which there is a change. Also include a statement as to whether those rates will be applicable for any additional professional services, which may be requested during those, contract years. APPENDIX B PART 2 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE 2003 FINANCIAL STATEMENTS: COMBINING SCHEDULE -ALL SERVICES DESCRIBED IN THE REQUEST FOR PROPOSALS SECTION II (E) A. Proposer warrants that it is willing and able to comply with State of Florida laws with respect to foreign (non -state of Florida) corporations. B. Proposer warrants that it is willing and able to obtain an errors and omissions insurance policy providing a prudent amount of coverage for the willful or negligent acts, or omissions of any officers, employees or agents thereof. C. Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without the prior written permission of the City of Tamarac. D. Proposer warrants that all information provided by it in connection with this proposal is true and accurate. Signature of Official: Name (typed): Title: Firm: Date: APPENDIX D PROPOSAL. CERTIFICATION FORM The undersigned hereby confirms that- 1. He/she is a duly authorized agent of the Company submitting the proposal; 2. He/she has read the General Terms and Conditions, and the Proposal Requirements which were made available to the Proposer in conjunction with the RFP and fully understands and accepts these terms unless specific variations have been expressly listed on the Proposal Form; 3. The Proposer will accept any awards made to it as a result of the Invitation for a minimum of ninety (90) calendar days following the date and time of the bid opening. BY: DATE: AUTHORIZED SIGNATURE OF AGENT TYPED/PRINTED NAME OF AGENT TITLE OF AGENT NOTE: Proposals without the manual signature of an authorized agent of the Proposer shall be deemed non -responsive and ineligible for award. Purchasing and Contracts Division City of Tamarac "Committed to Excellence.. Always" ADDENDUM NUMBER 1 March 12, 2003 RFP NO. 03.12R FINANCIAL AUDITING SERVICES The following information responds to questions and/or requested clarifications and is being distributed to all document holders. 1. The Professional Liability insurance requirement is being revised from $10,000,000 to $2,000,000. Reminder: Proof of insurance at the levels now required must be submitted with your proposal. Non- compliance may be grounds for elimination. 2. The following clarifies what other services listed on Appendix B, Part 2 are required as part of the regular annual financial audit. The following services should be included: 1) federal single audit; 2) Florida single audit: 3) Broward Cultural Affairs grant audit (see attached report); and 4) sewage certification (see attached report). The fees associated with other services related to the EDP auditing services and the pension funds are also requested. However, the EDP auditing services can be requested at any time by the Director of Finance or City Manager. The audit of pension funds requires independent approval by each of the pension fund's Board of Trustees. 3, The FY02 audit fee is $74,000 which is inclusive of the federal and state single audit as well as assistance with implementation of GASB Statement No. 34 new financial reporting entity model. 4. The FY03 audit amount budget is $74,000, which is inclusive of the above items as well. 5. For your information, the following attachments are included: "Broward County Cultural Affairs Council Community Arts and Education Grant 09-2002, Financial Statements": and "Sewage Capital Improvements Replacement Account Grant No. 75-3030, Small Community Sewer Construction Grant Program." 7525 (1l ' 3°tn Av_nue 0 'ymaraC, 2-3321-2401 5 (954) 724-2450 i Fox !954) 724- 408 a www' r .g � ��ma �c.a. Page Two Addendum #1 RFP 03-12R March 12, 2003 Please Sign below and submit this addendum with our ro osal. If you have any questions regarding this addendum, please call (954) 724-2450. Lynda S. Flurry, CPPO Purchasing and Contracts Manager c. Evaluation Committee Company Name Authorized Signature Date CITY OF TAMARAC, FLORIDA SEWAGE SYSTEM CAPITAL IMPROVEMENTS REPLACEMENT ACCOUNT GRANT NO.75-3030 . SMALL COMMUNITY SEWER CONSTRUCTION GRANT PROGRAM SEPTEMBEP,30, 2002 CITY OF TAMARAC, FLOROA SCHEDULE OF SEWAGE SYSTEM CAPITAL IMPROV FMENTS REPLACFNrN' ' ACCOUNT B glance as of September 30, 2001 Deposit$ lnvestMCnt Income Withdrawals Balance as of September 30, 2002 GRANT NO, 75-3030 SMALL COMMUNITY SEWER CONSTRUCTION GRAM' PROGRAM YEAR ENDED SEPTEMHER 30, 2002 '30 S 350,190 42,080 11,816 S 404,076 jH Rachlin Cohen & Htaltz L<s Certified Public Accountants & Calwltsnts REPORT OF INDEPENDENT CERTIF D PUBLIC ACCOIT2 ANTS City Manager City of Tamarac, Florida We have audited the accompanying schedule of the City of Tatnatae's Sewage System Capital Improvements. Replacement Account for the year ended September 30. 2001 as required by the Florida Department of Environmental Protection under Florida Statute Section 403.1826(6). This schedule is the responsibility of the City's management. We conducted our audit of the schedule in accordance with auditing standards generally accepted in the United States and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the schedule is free of material misstatement. Compliance with the laws, regulations, and agreement applicable to the City of Tamarac, Florida is the responsibility of the City's management. As part of obtaining reasonable assurance about whether the schedule is free of material misstatement, we performed tests to the City of Tamarac, Florida compliance with the provisions of Florida Statute Section 403.1826(6). An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the schedule. An audit also includes assessing the accounting principles used and significant estimates made by management, As well as evaluating .the overall schedule presentation. However, the objective of our audit was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of the tests disclosed no instances of non-compliance with the provisions of the Florida Statute that are required to be reported herein under Government Auditing Standards, This report is intended solely for the information and use of the management of the City of Tamarac and the Florida Department of Environmental Protection and is not intended to be used or should not be used by anyone' other than these specified parries. However, this report is a matter of public record and its distribution is not limited. Miami, Florida January 3, 2003 Chu 5ou:heut Third Averue. Tenth hem. Miami, Fiarida 33133 -Tel 35-377-4--a • Fait 3Z •377-tti31 nifWr in Miami - R LAuderdale • West Palm BeAA o Stuart _. .... �... _... ..�--...-_.. ..__.. K9VK'.f:hl'p7.Ctlg1 •��—__...._. A4rnd.. 5.m.u� laem.w.d uws� 1..4 ffm r rmiprl uA+mnw h-o e. w W ... .... _. H.n.en el �M 4...�-in lwinA' u! (mJW P„bLc M� wm�.n ud mn�M� d tiv rlxnd. Iyi�k.' l�N.a IMOIr A[:wn,ow No Text CITY OF TAINIARAC, FLORIDA BROWARD COUNTY CULTURAL AFFAIRS COUNCIL Co11U►lUMTY ARTS AND EDUCATION GRANT 09.2ov TABLE OF CONTENTS REPORT OF INDEPENDENT CERTmED PUBLIC ACCOUNTANTS FINANCIAL STATEMENTS Statement of Financial Position Statement of Revenues by Source in Comparison to Budget Statement of Grant Expenditures and Matching Exprnditares in Comparison to Budget Statement of Cash Flows Notes to Financial Statements 2 -,� PAGE Rachlin Cohen & H01tx LLF Certified Pubk Accountants Sr Consultants REPORT OF rNDEPENDEI\T CFRTIFIED PU LC AC O 7 TS Honorable Mayor, City Commission and City Manager City of Tamarac, Florida We have audited the accompanying statement of financial position as of September 30, 2002 and the related statements of revenues by source in comparison to budget and grant expenditures and matching expenditures in comparison to budget and cash flows for the City of Tamarac, Florida Cultural Grants Program (the Grant) for the period October 1, 2001 to September 30, 2002. These statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States and the standards applicable to financial audits contained in Government Auditing Standards issued by the Controller General of the United States, Those standards require that we plan and perform the audit to obtain reascruable assurance about whether the financial statements are free of material tnisstatcmrnt. An the amounts and disclosures in the financial audit includes examining, on a text basis, evidence suppo statements, An audit also includes assessing the accounting principles used and sigr> ftcant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As described in Note 1, the accompanying financial statements have been prepared in conformity with the accounting practices prescribed or permitted by Broward County and the repotting previsions of the grant agreement, which is a comprehensive basis of accounting other than generally accepted accounting principles. In our opinion, the financial statements refctred to above present fairly, in all material respects, the financial position as of September 30, 2002 of the Florida Cultural Orams Program and the related statements of revenue by source and grant and matching expenditures and cash flows for the period October 1, 2001 to September 30, 2002 on the basis of accounting described in Note 1. Such expenditures have been made in accordance with the provisions of Article 2 of the Broward County and City of Tamarac Cultural Grant agrecrricnt. This report is intended solely for the information and use of the Mayor, City Commission, City Manager, management and for filing with Broward County and is not intended to be or should be used by anyone other than these specified parties. However, this report is a matter of public record and its distribution is not limited, Miami, Florida January 3, 2003 Onc 50uthca51 Thtru Avenue, Tenth Floor, Miami. Fiondi ED], • Tel R5.37.7•4:2! • Faa Vli-37'•6311 Otflces in: Murni • Ft lsuaerd;ie tW5t Palm Belch Stuart . ---- •-..�._._.._...�... w•M.w.rchcpa tom w ._ . � �._ .�.. _ Mrmhtl ar S,mr I tnY(*Inun,l A, nln N:.nf Y!!er N rn_W" rl� Mftwha Y, rerltl M,n•p,r [' ihr!_rnwrrr ln•Ir;r, e• �rrrl.d ^rbw A:[arnw.Y •'� m-N.rr rtlM FlJrr.• (n YIIYn r,! (.,t�l Kd ��C11. �cci•wiu rr, CITY OF TAIMARAc, FLORd)A BRowARD CoL1NTY CuiLTuRAL AFFAM COUNCIL commYiNrN ARTS AND EDUCATION GRANT 09-2002 STATEMENT OF FINANCIAL POSITION SErro.. BEft 30, 2002 Cash Due from other governments S 515 7,990 5 8,505 Due to general fund S 7,990 Fund balance ' S1S S S,SOS i —/l See notes to financial statements. .2- CITY OF TAMARAC, FLORIDA BROWAILD COUNTY CULTURAL AFFAIRS COUNCIL COXMUNM ARTS An EDUCATION GRANT 09-2002 STATEMENT OF REVENUES BY SOURCE IN COMPARISON TO BUDGET FROM OCTOBEK I, 2001 TO SEPTE 4HE,R 30, 2002 Revenues: B24M A=4 Purchased goods and services - City of Tamxrac Intergov':mmcntal - Broward Cultural Arts Grant 513.000 S 11,214 Charges for services 10,630 10,630 Total revenues - 485 523,630 i 22,329 Scc nits to tlnanClal atatemcnts. -3- Crry Or. TAmmuc, Fr oxmA BROWARD COUNTY CULTURAL AnArRS COUNCr>L CoMMUMTY ARTS AND EDUCATION GRANT o9-2002 STATEMENT OF GRANT MEM1711 ;RES AND MATCf11NG EXPEND1T1 MS 1N COMPARISON TO BWGET FROM OCTOBER 1, 2001 TO SEPTFMBER 30, 2002 Expenditures: Artistic professional services TechnicaUproduction services Marketing Total expenditures Grant Matching F mendiwxs Fx=fjijj= low S 10,630 S 10,630 S 3,000 - - 6,500 3,500 S 10,630 S 10,630 S 13,000 See notes to financial statements, 4- S 4,530 S 13,630 S 13,160 4,863 6,500 4,863 1,791 3,500 1,791 S 11,184 $23.630 S21,814 CITY OF TAMARAG FLORIDA SRO WARD COUNTY CAI..TLM kL AFrArFts COUNCIL COMMUNM ARTS AND EDUCATION GRANT 09-2002 STATEMENT OF CASH FLOWS FROM OCMBER 1, 2001 TO SEPTEMBER 30, 2002 Cash flows from operating activities: Cash received from City of Tamarac Cash received from Broward County Cultural Arts and Education Grant Cash received from program participants Cash payments to employees for services Cash payments to suppliers for goods and services Net cash provided by operating activities Reconciliation of operating income to net cash provided by operating activities: Operating income Adjustments to reconcile operating income to net cash provided by operating activities: Changes in operating assets and liabilities: Increase in due from other governments Decrcasc in due to general fund Nct cash used by operatng activities Cash and cash equivalents, September 30, 2001 Cash and cash equivalents, September 30, 2002 7-/q Sc? notes to financial statements- -5- $ 19,204 2,640 495 (15.160) (6,654) S 515 S 515 (7,990) 7,115 (360) 875 S 515 Crry or TAmAAA.c, F..oRmA BROWARD COUNTY CIILTURA.iAFFAw CouNcIL COKMUNITY AXTs AND EpuCAnoN GRANT 09.2002 NOTES TO FINANCIAL STATEMENT'S FROM OCTOBER 1, 2001 TO SEMM 3ER 30. 2002 NOTE I. WIS OF PRESENTATION AND GRANT REQUIREMENT'S The financial statements of the City of Tamarac Cultural (went Program from $rowsrd County's Cultural Affairs Council have been prepared on the accrual basis of accounting. The major provisions of the grant includes the fallowing: (1) expenditures are to be made in acnordtrtce with the grant agreement and any amount incurred in excess of the grant tmount is not eligible Car reimbursement to the City; and (2) unexpended grant funds, if any, should be tenoned to the County. NOTE 2.. GRANT FUNDS All of the disbuasements for reimbursable grant expenditures were made by the City prior to September 30, 2002 and the City requested reimbursement in accordance with the grant tgroemestt from the County. Funds were expendcd only on those budget categories specified in the. grant agreement. Accordingly, no funds were due to the County. As of September 30, 2002, all monies received from the County were expended in Accordance with the grant agreement. -6 Of City of Tamarac r "Committed to Excellence... Always" Purchasing and Contracts Division ADDENDUM NUMBER 2 March 21, 2003 RFP NO. 03-12R FINANCIAL AUDITING SERVICES The following information responds to questions and/or requested clarifications and is being distributed to all document holders: QUESTION: Is the audit of the City's three pension plans also included in the RFP, or do the pension plans have their own auditors? RESPONSE: Currently, we do have a separate auditor, Steven Gordon, for the three pension funds. However, in the RFP (Schedule of Professional Fees and Expenses - Appendix Part 2) we are requesting a proposal on the audit fees for the three pension funds. It will be up to the individual board of trustees for each Pension fund if they want to retain a new audit firm. Please sign below and submit this addendum with our ro osal. If you have any questions regarding this addendum, please call (954) 724-2450. James Nicotra, CPPB Senior Procurement Specialist Company Name Authorized Signature Date 1 .r„ - inc.i of ��►y City of Tamarac "Committed to Excellence...Alwoys" Purchasing and Contracts Division ADDENDUM NUMBER 3 March 25, 2003 RFP NO. 03-12R FINANCIAL AUDITING SERVICES Please note the following changes/revisions to the RFP document. All other requirements remain the same. 1. The date required for submittal has been changed from March 26, 2003, to April 2, 2003, no later than 4:00 pm. 2. Professional Liability Insurance. The City will accept a bank letter of credit or a bond for the difference between a firm's deductible and the City's required deductible of $25,000.00 or submitted evidence that an Umbrella Policy would cover the difference between a firm's deductible amount and the City's required deductible. Please sign below and submit this addendum with our ro osal. If you have any questions regarding this addendum, please call (954) 724-2450. Required submittal date is Wednesday, April 2, 2003, no later than 4:00 pm., local time. James Nicotra, CPPB Senior Procurement Specialist Company Name f25 r-jw RRrr-, A,, 7- - ci TR10941 RXIIIB1'1' B BK R GARc &COMPANY cerlified public accountants April 15, 2006 Mr. Jeffrey Miller, City Manager City of Tamarac, Florida 7525 N.W 88 Avenue Tamarac, Florida 33321-2401 Dear Mr. Miller: Ct t L 7� Jtr'I 7 PM 3• 20 1110 Brickell Avenue, Suite 901 Miami, Florida 33131-3132 Ph: (305) 373-0123 • (800) 330-4728 Fax: (305) 374-4415 www.bkr-garcia.com We would like to inform you that effective on January 1, 2006, Grau and Company, PLLC-Miami Office is pleased to announce its separation from the Boca Raton Office and its name change to "BKR Garcia & Company, PLLC in order to reflect its affiliation with fellow members of BKR International, a global working association of independent accounting firms. Since our affiliation with BKR International in 1999, the association has been an active partner in our professional practice. We are a firm that takes pride in delivering personalized service and honoring our community roots, but we want to take advantage of the growing contributions that BKR makes to expanding business opportunities for our clients, both nationally and internationally. About BKR International An association of independent accounting and business advisory firms, BKR International represents the combined expertise of more than 160 member firms with over 300 offices in over 60 countries around the world. BKR is the 17t" largest accounting and consulting entity in the world and its affiliates offer clients the best of both worlds: personalized local service combined with the financial expertise and reach of a global network. BKR International's network of independent member firms gives companies and organizations an excellent alternative to the "Final Four" multinational firms. We will be providing you with the same high quality service given by Grau & Company in the past. Yours truly, BKR Garcia & Company, PLLC Pablo Llerena, CPA An Indcpcndent Member of BKR Films In Principal Cities Worldwide ,J) vision or k-olporations s Page I of 2 BKR GARCIA & COMPANY, PLLC ..... .. ... .... . .. ..... PRINCIPAL ADDRESS 1110 BRICKELL AVENUE SUITE 901 MIAMI FL 33131 ---- ----------- MAILING ADDRESS 1110 BRICKELL AVENUE SUITE 901 MIAMI FL 33131 Document Number FE1 Number L05000049178 203157326 State Status FL ACTIVE Last Event Event Date Filed NAME CHANGE AMENDMENT 07/11/2005 Total Contribution 0.00 Registered Agent Name & Address GARCIA, MANUEL M 1110 BRICKELL AVENUE P11-2 MIAMI FL 33131 Date Filed 05/18/2005 Effective Date NONE Event Effective Date NONE Manager/ I Member Detail Name & Address ETitle MANUEL M. GARCIA, CPA P.A. 1110 BRICKELL AVENUE, SUITE 901 MGRM MIAMI 171, 33131 PA13LO R. LLFRENA, CPA P.A. 1110 BRICKELL AVENUE, SUITE 901 MGRM MIAMI FL 33131 RICARDO SANTOS, CPA P.A. 'P://www.sunbiz.org.Iscriptslcordet.exe?al=DETFIL&nl=LO5000049178&n2=FEI&n3=00Ol&n4=N&r... 3/23/2006 TR #10941 EXHIBIT C BKR GARciA &Commw certified public accountants April 15, 2006 Mr. Jeffrey Miller, City Manager City of Tamarac, Florida 7525 N.W 88 Avenue Tamarac, Florida 33321-2401 Dear Mr. Miller: 1110 Brickell Avenue, Suite Sul Miami, Florida 33131-3132 Ph: (305) 373-0123 • (800) 330-4728 Fax: (305) 374-4415 www.bkr-garcia.com We are pleased to confirm our understanding of the services we are to provide the City of Tamarac, for the year ended September 30, 2006 with the option to renew our contract in subsequent years at mutually acceptable terms by both parties. 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 entity's basic financial statements of the City of Tamarac as of and for the year ended September 30, 2006. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the basic financial statements upon which we will provide an opinion in relation to the basic financial statements: 1. Combining and individual fund financial statements and schedules. 2. Schedule of expenditures of federal awards and state financial assistance The documents will also include the following supplementary information required by generally accepted accounting principles that will be subjected to certain limited procedures, but will not be audited. 1. Management Discussion and Analysis 2. Budgetary Comparison Schedules. 3. Statistical Section. 4. Required Supplementary Information. Audit Objectives The objective of our audits is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America, and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the financial statements taken 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, grant agreements, and other matters, 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-1 333, Audits of States, Local Governments, and Non -Profit Organizations and the Florida Single Audit Act and Chapter 10.550 Rules of the Auditor General of the State of Florida. An Independent Member of BKR. IN I' tHNA'TIONAL Finns In Principal Cities Worldwide Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 2 The reports on internal control and compliance will each include a statement that the report is intended for the information and use of the Mayor, City Commission, 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 then these specified parties. Our audits 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; the provisions of OMB Circular A-133, the Florida Single Audit Act and Chapter 10.550, Rules of the Auditor General of the State of Florida, and will include tests of accounting records, a determination of major program(s) in accordance with Circular A-133 and the Florida Single Audit Act and other procedures we consider necessary to enable us to express such an opinion and to render the required reports. If our opinion on the financial statements or the Single Audit compliance opinion is 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 an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for establishing and maintaining internal control and for compliance with the provisions of contracts, agreements, and grants. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal and state award programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, including the schedule of expenditures of federal and state awards and state financial assistance, but the responsibility for the financial statements remains with you. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting and compliance, the selection and application of accounting principles, and the safeguarding of assets. Management is responsible for 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 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 (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements. You are also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud or illegal act 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 BKR GARciA & CoMPA w certified public accountants Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 3 applicable laws and regulations and for taking appropriate steps to remedy any fraud, illegal acts, violation of contract agreements or abuse that we may report. Additionally, as required by OMB Circular A-133 and Chapter 10.550 Rules of the Auditor General of the State of Florida, 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. As part of the audit, we will assist you in preparing a draft of the financial statements, schedule of federal awards, state assistance 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 and inform 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. 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 caused by error or fraudulent financial reporting, misappropriation of assets, or 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 the detecting abuse. As required by the, Single Audit Act Amendments of 1996 and OMB Circular A-133, the Florida Single Audit Act and Chapter 10.550, Rules of the Auditor General, our audit will include tests of transactions related to major federal and state awards programs for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. 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 comes 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 matters that might arise during 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 audits, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures — Internal Controls In planning and performing our audits, we will consider the internal control sufficient to plan the audits in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinions on the City of Tamarac's financial statements and on its compliance with requirements applicable to major programs. ` BKR GARcIA &COIvtPANY �,a`,r certified public ar.cnunianis Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 4 We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. 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. Tests of controls relative to the financial statements are required only if control risk is assessed below the maximum level. 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 Rules of the Auditor General, we will perform tests of controls 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 and state 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 reportable conditions. However, we will inform the governing body or audit committee of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by OMB Circular A-133 and Chapter 10.550 Rules of the Auditor General. Audit Procedures -- Compliance Our audits will be conducted in accordance with the standards referred to in the section titled Audit Objectives. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City of Tamarac's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements and other matters. 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 require 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 the applicable procedures described in the OMB Circular A-133 Compliance Supplement and the State Compliance Supplements 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 those procedures will be to express an opinion on the City of Tamarac's compliance with requirements applicable to major programs in our report on compliance issued pursuant to OMB Circular A-133 and the Florida Single Audit Act. w ' BKR GARciA &Commy certified puhlir. accountants Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 5 Audit Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any invoices selected by us for testing, At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection Form (required under the Single Audit Act only) that summarizes our audit findings. We will provide an original and print -ready master of 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 engagements, 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 BKR Garcia & Company, PLLC and constitute 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, If requested, access to such attest documentation will be provided under the supervision of BKR Garcia & Company, PLLC personnel. Furthermore, upon request, we may provide photocopies of selected attest documentation to the governmental agencies. The governmental agencies may intend, or decide, to distribute the photocopies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of three years after the date the auditors' report is issued or for any additional period requested by the cognizant or grantor agency. If we are aware that a federal and 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 attest 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 $89,500 for the year ended September 30, 2006. 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. The above fees are 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 additional costs. Government Auditing Standards require that we provide you with a copy of our most recent quality control review report and any letter of comment, and any subsequent peer review reports and letter of comment received during the period of the contract. Our 2004 peer review report accompanies this letter. BKR GARCiA&ComPAw ;J& certified public accountants Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 6 We appreciate the opportunity to be of service to the 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, BKR Garcia & Company, PLLC (Formerly Grau & Company — Miami Office) Pablo R. Llerena, CPA RESPONSE: This letter correctly sets forth the understanding of the City of Tamarac By: Title: 480 Date: V BKR GARciA &COMPANY certified public accoun.tanis " ,V CPA ASSOCIAT s Certified PublicAccount;in(r: and CmSultai\tz September 30, 2004 To the Shareholders Grau & Company, P.A. We have reviewed the system of quality control for the accounting and auditing practice of Grau & Company, P.A. (the firm) in effect for the year ended June 30, 2004. A system of quality control encompasses the firm's organization structure and 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 -Certified Public Accountants (the AICPA). The design of the system, and compliance with it, are the responsibilities of the firin. Our responsibility is to express an opinion on the design of the system, and the finn's compliance with that system based on our review. Our review was conducted in accordance with standards established by the Peer Review Board of the AICPA. 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. Because our review was based on selective tests, it would not necessarily disclose all weaknesses in the system of quality control or all instances of lack of compliance with it. Because there are inherent limitations in the effectiveness of any system of quality control, departures from the system may occur and not be detected. Also, 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 Grau & Company, P.A. in effect for the year ended June 30, 2004, has been designed to meet the requirements of the quality control standards for an 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. CPA Associates i. I - I i 1 I f 1 1 1 IvALmri� N ULK I if A I t UI— LIALSILI I i INSURANCE o�/�o�E0m6 PRODUCER (9S4)382-43510 FAX (954)382-2810 THIS CERTIFICATE IS ISSUED ASAMATTER iOFINFORMATIION SETNOR BYER INSURANCE & RISK ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE (DOES NOT AMEND, EXTEND OR 7901 SW Gth Court ALTER THE COVERAGE: AFFORDED ISY THE POLICIES BELOW. 0 4 Suite 3� Suite 4 FL 3332a INSURERS AFFORDING COVERAGE NAIL 9 PlantINSURED RR GARCIA & COMPANY, PLLC MANUEL M CAIRCYA, CPA IN619RERA: Hartford Casualty Ins Cm 29424 1110 BRICKELL AVE PH.#2 MIAMI, FL 33131 INSURER 8; INSURER C: INSURER D: INSURER E; THE POLICIES OF INSURANCE LISTED RE -LOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE Pt ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHIC MAY'PERTAIN, THE,INSUIRANCE AFFORDED BY i HE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TER POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAIL CLAIMS. ISIR 'OI7 TYPE Of INSURANCE POLICY NuMSER POLICY EFP.EC'nVE POUICYIEXPIRATIpN GENERAL LIABILITY 21SOARMS294 01/01✓2006 01/01/200.7 X COMMERCIAL GENERAL LIABILITY CLAIMS'MAOE FX7 OCCUR A G&VL A'GGRBGATE LIMIT APPLIES PSR: POLICY j�C LOC AUTOMpEILEILWBIUTY MY AUTO ALL OWNED AWTAS SCMEDUUMAUTOS A X HIRED AUTO6 X NON•OVINED AUTOS A GARAGE LIABILITY 7 ANY AUTO EXMSSIUMeRBLLA LIABILITY TOCCUR ❑ CLAIMS MADE HDEOWCTIBLE RETENTION a l0, WORKERS OOMPENSATION AMD EMPLOYERS UA131UTV ANY PROARIE'TOFUPARTNERIFXECVTNE OFFICER/MEMBER EXCLUDED? u yoe, aexriba vndor SPECIAL RROVI$10 SIW*w OTHER 21513ARM5294T Oi/101,/2006 1 01/0 01/101/2006 1 01/01/2007 OESCRPTION OF OPERATIONS iILOCATIONS I VEHICLES I EXOLUSIONS AIIDED BY ENDORSEMENT/ SPECIAL PROVISIONS PABLO LLERENA, CPA. P.A. 1110 BRICKELL AVENUE SUITE, 901 MIAMI, FL 33131 ILICY PERIOD INDICATED, NOTWITHSTANDING H THIS CERTIFICATE MAY BE ISSUED OR 1)S, EXCLUSIONS AND CONDITIONS OF SUCH UNITS EACH OCCURRENCE 1, 000 ,-O0.0 DAMAGE TO RENTED S 500,00 MED EXP (Any Ong parson) ! 10 ,BOO PERSONAL 6 ADV IN4URY i 1,000,000 GENERAL AGGAEC-TE 3 2 1 00- PRODUCTS - COMPIOP AGG S Z , OOO , 000 COMBINED SINGLE LIMIT (EA accidem 8 1. 000 00 BODILY INJURY (Per psmw) 2 BODILY INJURY (Per ecndoN) S PROPERTY DAMAGE (Per sceldenU AUTO ONLY - EA ACCIDENT 3 3 OTHER THAN EA ACC AUTO ONLY AGG EACH 00CUP.RENCE S 8 8 21000 000 AGGREGATE 2 OOO r 000 s wC STArU• OTHa 8 E.L. EACH ACCIDENT 1 8. E.L, DISEASE • EA EMPLOYEE i E.L. DISEASE • POLICY LIMIT I S SHOULD ANY OF THE ABOVE DESCRIBED POLICIES 81a CANCELLED BEFORE THE EXPIRATION DAW THEREOF, THEIISSUING INSURER WILL ENDEAVORTO MAIL 10 DAYS wpirrEN NOTICE TO TINE CERTIFICARE MOLDER NAMED TO THE LEFT, BUT FAILURE TO MAILI6UCH NOTICE SHALL IMPOSE NO OBLIGATION ORILIA BILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE Daniel Saunders/PHYLLI ACORD 25 (20011031 (�ACORD CORPORATION 1988 VIAK, � I . LUII(. 12:)IrM )einur oYtr in,.urr�,ii_r a i%�.K -. Ili IMPORTANT If the certificate ihold;er is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A statement on this certificate does snot confer rights to the oertificate holder in lieu of such endorsement(s). If SU13ROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on tt,is certifcatte does not confer irights to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance an the reverse side of this form does mot constitute a contract between the issuing iosurer(s), authorized representative or producer„ and the certificate holder, nor does it affirmatively or negatively amend, e)dend or alter the coverage afforded by the policies listed thereon. ACORC 25,(2001/09) PI-ACT-1 (11-97) Philadelphia Insurance Companies One Bala Plaza, Suite 100, Bala Cynwyd, Pennsylvania 19004 ACCOUNTANTS PROFESSIONAL LIABILITY INSURANCE N Philadelphia Indemnity Insurance Company 1 Philadelphia Insurance Company DECLARATIONS Policy Number: PHSD168549 pk NOTICE: EXCEPT TO SUCH EXTENT AS MAY OTHERWISE BE PROVIDED HEREIN, THIS POLICY IS WRITTEN ON A CLAIMS MADE BASIS AND COVERS ONLY THOSE CLAIMS FIRST MADE AGAINST THE INSURED DURING THE POLICY PERIOD AND REPORTED IN WRITING TO THE INSURER PURSUANT TO THE TERMS HEREIN. THE LIMIT OF LIABILITY AVAILABLE TO PAY JUDGMENTS OR SETTLEMENTS SHALL BE REDUCED BY AMOUNTS INCURRED AS DEFENSE COSTS. PLEASE READ CAREFULLY. Item 1. NAMED INSURED and Address: BKR Garcia & Company, PLLC 1110 Brickell Ave Ste 901 Miami, FL 33131-3138 Item 2. Limits of Liability: Item 3. Deductible: Item 4. POLICY PERIOD: Item 5. Premium: Item 6. Retroactive Date Endorsements: Per Schedule Attached (A) $ 1,000,000 each CLAIM, including CLAIMS EXPENSE (B) $ 1,000,000 Annual Aggregate including CLAIMS EXPENSE $ 10,000 Deductible per CLAIM From: 01/01/2006 To: 01/01/2007 (12:01 A.M. local time at the address shown in Item 1.) 01/01/2006 In witness whereof, the Insurer issuing this Policy has caused this Policy to be signed by its authorized officers, but it shall not be valid unless also signed by the duly authorized representative of the Insurer. Authorized Representative Countersignature Countersignature Date Page 1 of 1 City of Tamarac "Committed to Excellence... Always" Purchasing and Contracts Division April 11, 2006 Mr. Pablo Llerena, C.P.A. Managing Agent BKR Garcia & Company, PLLC 1110 Brickell Avenue, Suite 901 Miami, FL 33131-3132 RE: Agreement Renewal Amendment #1 RFP 03-12R, Financial Auditing Services Dear Mr. Llerena: The City's Agreement with your company to provide financial advisory services will expire upon final completion of the report for Fiscal Year 2005, The original agreement dated August 26, 2003 provides for additional one-year renewals, upon completion of work for three (3) fiscal periods. This is the first renewal of the subject contract. Please execute two (2) originals of the attached Amendment and have your company's Corporate Secretary attest the signature on each original. In addition, please ensure that the Corporate Acknowledgement is fully notarized. We ask that you return the two (2) original documents to the Purchasing & Contracts Division no later than April 14, 2006. In addition, the City will require an updated Certificate of Insurance as soon as possible. Upon execution by the City and approval by the City Commission, an original will be returned to you for your records. If you have any questions, do not hesitate to contact me at (954) 597-3567. Sincerely, rr / Keith K. Glatz, CPPO Purchasing and Contracts Manager c: Steven Chapman II, Director of Finance 7525 NW 88th Avenue a Tamarac, Florida 33321-2401 11 (954) 597-3570 M Fax (954) 597-3565 N www.famorac.org Equal Opportunity Employer w _raM k .. C}t".'£l7..... i {; u n tdiT; p° TR 10941 EXHIBIT D AGREEMENT AMENDMENT #1 BETWEEN THE CITY OF TAMARAC AND BKR GARCIA AND COMPANY The City of Tamarac, a municipal corporation, with principal offices located at 7525 NW 88th Avenue, Tamarac FL 33321 (CITY), and BKR Garcia & Company, PLLC, a Florida Limited Liability Corporation, (formerly Grau & Co., P.A., a professional association), 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 and address 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 88th Avenue, Tamarac, FL 33321 hereinafter referred to as CITY, and Grau & Company, a na-p-efess'enal as,&eG tk, BKR Garcia & Company, a Florida Limited Liability Corporation with offices located at 1975 cu e Blvd., Suite 520, Ft. Laud -44a1e--FL , 1110 Brickell Avenue, Suite 901, Miami, FL 33131 hereinafter referred to as AUDITOR: Per the terms of Article 1 — Effective Date of the original Agreement, the City and BKR Garcia & Company exercise the first renewal option, effective for the audit to be conducted for Fiscal Year 2006. 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 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, ground Express Mail, air or round courser services, or by messenger service pestage prepai_. as follows: , P i., 7... ... CITY City Manager City of Tamarac 7525 NW 88th Avenue Tamarac, Florida 33321-2401 With a copy to the City Attorney at thesaaae following address. Goren Cherof, Doody & Ezrol P.A. 3099 East Commercial Blvd., Suite 200 Fort Lauderdale FL 33308 AUDITOR: Pablo Llerena, CPA Ramer Manaaina Aaent 33304 BKR Garcia & Company, PLLC 1110 Brickell Avenue. Suite 901 Miami, FL 33131-3132 (_05)373- ,011 .3 23 All other provisions of the original agreement remain in effect as written. Remainder of Page Intentionally Blank "I fJc.tCticdird°" ic,. Pi 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 BKR Garcia & Company, PLLC, by and through its Managing Agent, duly authorized to execute same. ATTEST: Marian Swenson, CMC City Clerk CITY OF TAMARAC Aw A�J;�Vw Beth tans aum-Talabisco, Mayor � to Jeffrey L. Miller, City Manage D e- A roved a o/Yo and al sufficient . ,Yt 9 ate-�! ., Sa ef S. Goren, City Attorney ATTEST: N./A (Corporate Secretary) None Type/Print Name of Corporate Secy Date BKR GARCIA & COMPANY, PLLC Company Name �)" tom. Signature of Planaging Agent Pablo R. Llerena Type/Print Name of Managing Agent zr,.Q , 12 2 Oct b (CORPORATE SEAL) Date ,a,.; � �.: �� la#dY.l?r:.i,;�ti)fJ' �,°"td3 •()T)�7'��?C;�> %)I�/t5tc:;tYi r CORPORATE ACKNOWLEDGEMENT STATE OF :SS COUNTY OF 'If . r', a 1r s,i ; "i . 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 BKR Garcia & 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 trr-'A , 2006- i nature of Notary Public Se �oAaFrlorida at Large My Commission DD267664 ��w�Eenirei Nou �. , �, 298� Print, Type or Stamp Name of Notary Public [> Personally known to me or ❑ Produced Identification Type of I.D. Produced [F1 DID take an oath, or ❑ DID NOT take an oath. BKR GARciA &Con/ pAw llw,,�„l_ certified public accountants April 15, 2006 Mr. Jeffrey Miller, City Manager City of Tamarac, Florida 7525 N.W 88 Avenue Tamarac, Florida 33321-2401 Dear Mr. Miller: 1110 Brickell Avenue, Suite 901 Miami, Florida 33131-3132 Ph: (305) 373-0123 111 (800) 330-4728 Fax: (305) 374-4415 www.bkr-garcia.com We are pleased to confirm our understanding of the services we are to provide the City of Tamarac, for the year ended September 30, 2006 with the option to renew our contract in subsequent years at mutually acceptable terms by both parties. 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 entity's basic financial statements of the City of Tamarac as of and for the year ended September 30, 2006. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the basic financial statements upon which we will provide an opinion in relation to the basic financial statements: 1. Combining and individual fund financial statements and schedules. 2. Schedule of expenditures of federal awards and state financial assistance The documents will also include the following supplementary information required by generally accepted accounting principles that will be subjected to certain limited procedures, but will not be audited. 1. Management Discussion and Analysis 2. Budgetary Comparison Schedules. 3. Statistical Section, 4. Required Supplementary Information. Audit Objectives The objective of our audits is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America, and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the financial statements taken 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, grant agreements, and other matters, 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-1 333, Audits of States, Local Governments, and Non -Profit Organizations and the Florida Single Audit Act and Chapter 10.550 Rules of the Auditor General of the State of Florida. An Independeur Member of BKR INTERNATIONAL Finns In Pnncipal Cidi Worldwide Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 2 The reports on internal control and compliance will each include a statement that the report is intended for the information and use of the Mayor, City Commission, 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 then these specified parties. Our audits 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; the provisions of OMB Circular A-133, the Florida Single Audit Act and Chapter 10.550, Rules of the Auditor General of the State of Florida, and will include tests of accounting records, a determination of major program(s) in accordance with Circular A-133 and the Florida Single Audit Act and other procedures we consider necessary to enable us to express such an opinion and to render the required reports. If our opinion on the financial statements or the Single Audit compliance opinion is 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 an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for establishing and maintaining internal control and for compliance with the provisions of contracts, agreements, and grants. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles, and that federal and state award programs are managed in compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, including the schedule of expenditures of federal and state awards and state financial assistance, but the responsibility for the financial statements remains with you. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting and compliance, the selection and application of accounting principles, and the safeguarding of assets. Management is responsible for 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 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 (a) management, (b) employees who have significant roles in internal control, and (c) others where the fraud could have a material effect on the financial statements. You are also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud or illegal act 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 BKR GARciA &Connmw ''" certified public accountants Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 3 applicable laws and regulations and for taking appropriate steps to remedy any fraud, illegal acts, violation of contract agreements or abuse that we may report. Additionally, as required by OMB Circular A-133 and Chapter 10.550 Rules of the Auditor General of the State of Florida, 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. As part of the audit, we will assist you in preparing a draft of the financial statements, schedule of federal awards, state assistance 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 and inform 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. 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 caused by error or fraudulent financial reporting, misappropriation of assets, or 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 the detecting abuse. As required by the, Single Audit Act Amendments of 1996 and OMB Circular A-133, the Florida Single Audit Act and Chapter 10.550, Rules of the Auditor General, our audit will include tests of transactions related to major federal and state awards programs for compliance with applicable laws and regulations and the provisions of contracts and grant agreements. 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 comes 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 matters that might arise during 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 audits, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures — Internal Controls In planning and performing our audits, we will consider the internal control sufficient to plan the audits in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinions on the City of Tamarac's financial statements and on its compliance with requirements applicable to major programs. BKR GARciAXommw certified public accountants Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 4 We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. 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. Tests of controls relative to the financial statements are required only if control risk is assessed below the maximum level. 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 Rules of the Auditor General, we will perform tests of controls 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 and state 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 reportable conditions. However, we will inform the governing body or audit committee of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the financial statements. We will also inform you of any nonreportable conditions or other matters involving internal control, if any, as required by OMB Circular A-133 and Chapter 10.550 Rules of the Auditor General. Audit Procedures — Compliance Our audits will be conducted in accordance with the standards referred to in the section titled Audit Objectives. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests of the City of Tamarac's compliance with applicable laws and regulations and the provisions of contracts and agreements, including grant agreements and other matters. 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 require 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 the applicable procedures described in the OMB Circular A-133 Compliance Supplement and the State Compliance Supplements 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 those procedures will be to express an opinion on the City of Tamarac's compliance with requirements applicable to major programs in our report on compliance issued pursuant to OMB Circular A-133 and the Florida Single Audit Act. BKR GARciA &ComPmY ow"Ir certified public accountants Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 5 Audit Administration, Fees, and Other We understand that your employees will prepare all cash, accounts receivable, or other confirmations we request and will locate any invoices selected by us for testing. At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data Collection Form (required under the Single Audit Act only) that summarizes our audit findings. We will provide an original and print -ready master of 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 engagements, 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 BKR Garcia & Company, PLLC and constitute 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. If requested, access to such attest documentation will be provided under the supervision of BKR Garcia & Company, PLLC personnel. Furthermore, upon request, we may provide photocopies of selected attest documentation to the governmental agencies. The governmental agencies may intend, or decide, to distribute the photocopies or information contained therein to others, including other governmental agencies. The audit documentation for this engagement will be retained for a minimum of three years after the date the auditors' report is issued or for any additional period requested by the cognizant or grantor agency. If we are aware that a federal and 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 attest 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 $89,500 for the year ended September 30, 2006. 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. The above fees are 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 additional costs. Government Auditing Standards require that we provide you with a copy of our most recent quality control review report and any letter of comment, and any subsequent peer review reports and letter of comment received during the period of the contract. Our 2004 peer review report accompanies this letter. BKR GARaA&COMPANY :'; certified public accountants Mr. Jeffrey Miller, City Manager City of Tamarac, Florida Page 6 We appreciate the opportunity to be of service to the 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, BKR Garcia & Company, PLLC (Formerly Grau & Company — Miami Office) By: Qabia ci .ems Pablo R. Llerena, CPA RESPONSE: This letter correctly sets forth the understanding of the City of Tamarac By:%•w7 /'lam✓ Title: Jeffrey L. Miller - City Manager Date:/1 BKR GARCrA &ComPAw certified public accountants _ ASSOCIATES Certified Public Accountants. and Consultants September 30, 2004 To the Shareholders Grau & Company, P.A. We have reviewed the system of quality control for the accounting and auditing practice of Grau & Company, P.A. (the firm) in effect for the year ended June 30, 2004. A system of quality control encompasses the firm's organization structure and 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 Certified Public Accountants (the AICPA. The design of the system, and compliance with it, are the responsibilities of the firm.. Our responsibility is to express an opinion on the design of the system, and the firm's compliance with that system based on our review. Our review was conducted in accordance with standards established by the Peer Review Board of the AICPA. 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. Because our review was based on selective tests, it would not necessarily disclose all weaknesses in the system of quality control or all instances of lack of compliance with it. Because there are inherent limitations in the effectiveness of any system of quality control, departures from the system may occur and not be detected. Also, 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 Grau & Company, P.A. in effect for the year ended June 30, 2004, has been designed to meet the requirements of the quality control standards for an 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. CAA 4AU� CPA Associates Nl mih.c ■ q. ,.L;:n b• n_.n i .� P.b;�. �� d,,nt: ■' F;� I'rucuri �ceeion Pii .i. Pt1" Uc SmIit,n M Florida Irtma utc.d l'rruFwd Public. 4 wunlnn�, { b E � \� ~ )2 ®� ; j a § ox ®\ :\ 2 - ±/\! UJ§\ -J==' (be( k\ m §a) 'De c \\\0Ln ƒ\/ §)f§;{N(){ $%�ru cl �) 2>@'D'aj[k _/}/}} [ =af'a�� £e/f=\}\\�#2®})«%«EN \&>n 0 \-{ kS-j zzzamfLmIL ��3&/$4//DDD7) ° 3 *7§®z % � cc cl, ƒ/\ /72z65 f 73 \ z \ & k \_ Ol E > 2 }Z: -{!§ E)�k {A){)�fa§a\\,§f- \/\ k±¥»)}§]mƒ_[�@!�3=�D222�3[[§) o&%Q \JJIco2uuuuuu au3UA$¥2££f$p2««« �� z Z Z O 0 D = 0 Z Z1 � 2 � � � m > r = m 0 m F m m cn Z > D 0 r m z 0 7 D 0 0 0 r c c m m 0 m cci c m m m - z D — ao m = o z � m m/om� umi z ui Z n - W cn T m w m m 0 m 9?,Z m Z W 7C 3 CD " O 77 O J n N An � A Z •�• w 6 < (D C o o � O C:, T a 3 • OD C X • X DCl O X C. n (D N O 6 (D o N 3 (D w A 0 O< 0 <� Q p w D o n 7, O -p c N C O(D= < (D 3 O .J-t v O U :3.+ F a �^ lD N rD w J rt N rt, w �+ C 0. w ✓, D fD n O v+ (D 0_ rD (D N' rD O w N w < O n S N J 0 O X n 0 w rD p a O w c ((DD J J p N< n O :. in vi a N N 2 0 a f° O J c N rr S' s J ro a * �' o ° �° o O rD ao N w p < 3 0 o c CD a s O0 s 3 o_ o s c (Dd 3< Ort O N0 (Do° Tco O �^ w 0' .+ h. `G (p p J N N rD .�{ l< n s s w (o o �' o J o g p n p 0 X-0 � w e << c rt ro S n0 0 A O W .. �. 1D D_ -p S J w CD J O J (o w O O 0 7 w rt O n d rip 7 (JD /D J CL n c N n (D (D O in rD " wON rD a- ba a-OC rt. w 3 (D N 7 S O N w (D(D a d d w �G rD C- .Dirt S vwi 00 7 c 7C J O x S O TI rt O O_ s rt .v d w a a - w - oa0, 0 0 1 , I = � O (n d o n- tnn rD p _ rD n c O_ W O ? r.'D a o m m m n m a N O S w v J n J x O. a-O N D_ rD x n D f O ro .w+ o- n Y J rt rD J (D �< rD O< (D N oo ,.,cr = (D ? n �, w O c x (D C O a 0 J °° 0 CD 7 .+ a w n = rp w C S < w O_ rD 0 O J N m rD (D A n D O - — SOIQ rD fD O 0CD U H, 0- J .+ O < rD O ro 2 rD �c w A a n J w CCD H (D CD ? n `' rD w O 3 Oo n O rD J C CT rt n-C a a T ((D p 0_ C n m m rD O < a O n O 0Ja ? l< a a l< n n T a m ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ N (D Q. 7C ,v O D- N rD C J O (D O C X C O No 7' 7 -0 00 -p 0. n (D w o rD °; "' a J rD ID '^ n' a OHO n n m w m -+C-D 0 N S2° a -00o c 0 m N a Ow < n a 0 w J O n C- J _ n w a J J D a 0 (D o_ J p c n w n O rD W 7 '0 N N O A rr O '0 N O (D 3'D O ni n \ Oro w Oo O w .+ 'D N O 7 C /D F) J w J rt N w oa (D d J J a w w m 3 rD w J — J J C C — (D w O_ J (D J J 7 J n a m n -0 3 n OO 7 rt. (D n rD w 00 O v J (D a rD a v J (J„ c an O 3 J n m C (D N j. D = rt (D 3 T 3 mo J (D (D (D O DO N 0 3 n p _' c w N rDG C pJi .Ji < N N rt ■ ■ ■ ■ ■ O (DJ(D O c c m (m 0 X D 0 � �. Oo U �- a O 3 J w D 3 n o— n a v a (D a n J J Oa m 3 0- 3m0° cm 'Dm MIDm wrtm l<n c o- � O O c w O m rD :0 _rt H tl J (D M. c M rD v O-0 O w (D U rt J OJO N 3 (D w c 0 O fD x a .+ m '^ J I w N (D 3` (D O Oo J 3 c O J �„ w a J w J C �ebi+ w owvrD v, ,rt: ID w N O a w w Oa S 0 2 rwl J O S rD 7 O < -p 3 0 �' vcl v n m 3 OJ D s 3 o O J (D 73 c d J 3 N w (D c s w w J D N n uc, (DC `rt^ � m w" a FD m N V T O Q. (D J O p (D w v3i (D rD v�i .+ rD fD J N D I� 0 ► � ro