HomeMy WebLinkAboutReso 2013-2106 RESOLUTION NO. 2013- 2 I OC,
A RESOLUTION OF THE CITY OF SUNNY ISLES BEACH,
FLORIDA,APPROVING THE FIRST AMENDMENT TO THE
AGREEMENT WITH KEEFE, McCULLOUGH & CO., LLP,
FOR PROFESSIONAL AUDITING SERVICES, FOR A
PERIOD OF ONE (1) YEAR, IN AN AMOUNT NOT TO
EXCEED FORTY-FIVE THOUSAND DOLLARS($45,000.00),
ATTACHED HERETO AS EXHIBIT "A"; AUTHORIZING
THE MAYOR TO EXECUTE SAID AGREEMENT;
AUTHORIZING THE CITY MANAGER TO DO ALL THINGS
NECESSARY TO EFFECTUATE THIS RESOLUTION;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Section 4.10 of the Sunny Isles Beach Charter ("Charter") requires an
independent audit of the City accounts on at least an annual basis; and
WHEREAS, in accordance with industry best practices as established by the Government
Finance Officers Association (GFOA), the City issued Request for Proposals No. 10-06-01; and
WHEREAS, on September 10, 2010 via Resolution No. 2010-1596, the City Commission
approved an Agreement with Keefe,McCullough&Co.,LLP to provide annual auditing services for
a three (3) year period, in the amounts of$32,500.00 for Fiscal Year 2009/2010, $33,500.00 for
Fiscal Year 2010/2011, and $34,500.00 for Fiscal Year 2011/2012, with an option to renew two
additional one year terms; and
WHEREAS, the City being satisfied with Keefe, McCullugh& Co. wishes to exercise the
option to renew the Agreement for one additional year; and
WHEREAS, the City desires to enter into an agreement with Keefe, McCullough & Co.,
LLP to provide annual auditing services for a one(1)year period, in an amount not to exceed Forty-
Five Thousand Dollars ($45,000.00), attached hereto as Exhibit "A".
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF SUNNY ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Approval of First Amendment to the Agreement. The City Commission hereby
approves the First Amendment to the Agreement with Keefe, McCullough & Co., LLP, for
professional auditing services for a one (1) year period, in an amount not to exceed Forty-Five
Thousand Dollars ($45,000.00), attached hereto as Exhibit "A".
Section 2. Authorization of Mayor. The Mayor is hereby authorized to execute said Agreement.
Section 3. Authorization of City Manager. The City Manager is hereby authorized to do all
things necessary to effectuate this Resolution.
Section 4. Effective Date. This Resolution is effective upon passage.
R2013-Auditor Srvs Keefe Mccullough 1
PASSED AND ADOPTED this 19th day of September 2013.
7i /�
No man S. Edelcup, Mayor
ATTEST:
/\c"
Jane A. Hines, MMC, City Clerk
Approved As to Form and
Legal Suff i-ncy:
/1-4
eat
s 'not, City Attorney
Moved by: V `CI 1 \ D 1C P—A aP)
Seconded by: ` pvv�n c yckrO
Vote: 6—b
Mayor Edelcup ✓(Yes) (No)
Vice Mayor Aelion ✓(Yes) (No)
Commissioner Gatto ✓(Yes) (No)
Levin Yes
Commissioner L v e n ✓ ) (No)
Commissioner Scholl (Yes) (No)
R2013-Auditor Srvs Keefe Mccullough 2
eNyLN
FIRST AMENDMENT TO THE AGREEMENT
BETWEEN THE CITY OF SUNNY ISLES BEACH AND
O.sue," KEEFE,McCULLOUGH & CO., LLP
CONTRACT NO. C1213-066
This First Amendment to the Agreement betty eNhe City of Sunny Isles Beach and
KEEFE, McCULLOUGH & COL, LLP, executed this' day of September, 2013, is made a
part of the original Agreement between the parties dated October 28, 2010, ("the Agreement")
between the City of Sunny Isles Beach ("City") and KEEFE, McCULLOUGH & COL, LLP,
("Consultant") attached hereto as Attachment "A", whose Federal Identification # is
SI. /3,51f - . The City and Consultant hereby agree as follows:
1. OPTION TO RENEW: The City hereby exercises its first optional one(1)year renewal
term for the period ending October 1, 2014, in accordance with Section 1.2. (A) of Request for
Proposal No. 10-06-01 ("Professional Auditing Services") incorporated by reference into the
Agreement, in an amount to exceed Forty-Five Thousand Dollars($45,000.00).
2. OTHER PROVISIONS REMAIN IN EFFECT. Except as specifically modified
herein, all terms and conditions of the original Agreement between the parties, dated October 28,
2010 shall remain in full force and effect.
3. CONFLICTING PROVISIONS. The terms and conditions in this First Amendment
supersede any other conflicting provisions that are contained in any other document, including
but not limited to Attachments "A", attached hereto. If there is a conflict or inconsistency
between any term, statement, requirement, or provision of any exhibit or attachment attached
hereto, including but not limited to Attachments "A", or any document or events referred to
herein, and a term, statement, requirement or provision of this First Amendment, the term,
statement, requirement, or provision contained in this First Amendment shall prevail and be
given superior effect and priority.
IN WITNESS WHEREOF, the parties hereto have executed this document as of the date
mentioned above.
WITNESS: KEEF , cCUL OU►, & CO.,LLP
etyttkiiv
BY: i,,,.u�l r , C
Sig rture William . Bens.n, CPA
C ynth a ea. Ivert
Print Name CITY OF SUNNY ISLES BEACH
4
BY: /47/147/ 14/x/
No an S. Ede cup,Ma or
ATTEST: APP VED AS T I ORM AND
LEG. SU• ►_._.,.ICY
OANL As
BY
Jane A. Hines,MMC, City Clerk `ails Ottinot, t1 ty Attorney
f
JNNY tS.F
\J
IT
CITY OF SUNNY ISLES BEACH
"°R\ KEEFE, MCCULLOUGH & CO. LLP CONSULANT AGREEMENT
CONTRACT NO: C0910-061
THIS CINTRACTUAL AGREEMENT (hereinafter referred to as the "Agreement")
is made this day of UPi'111Q6g , 2010, by and between the CITY OF SUNNY
ISLES BEACH, Florida, (hereinafter referred to as "City"), and KEEFE, MCCULLOUGH &
CO., LLP (hereinafter referred to as "Consultant") whose Federal I.D. # is
s.9 - (30 71 - - .
RECITALS
WHEREAS, the City is in need of a professional auditing consultant to audit the basic
financial statements of the City as of and for the fiscal years ending September 30, 2010, 2011
and 2012 and to provide an opinion on the conformity of this material with accounting principles
generally accepted in the United States, ("Services); and
WHEREAS, the Consultant will also provide additional documentation, including
reporting on internal control, that will be subject to the auditing procedures applied in the audit
of the basic financial statements, ("Services"), as more fully described in Attachment "A": and
WHEREAS, the Consultant will provide these auditing Services for the City for the
years ended September 30, 2010, 2011 and 2012, as more fully described in Attachment •"A";
and
WHEREAS, the Consultant represents that it has expertise to perform these Services.
NOW THEREFORE, in consideration of the foregoing and for the mutual covenants,
representations and warranties and other good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties agree as follows:
1. RECITALS. The Recitals set forth above are hereby incorporated into this Agreement
and made a part hereof for reference.
2. CONSULTING SERVICES. Consultant shall audit the basic financial statements of the 1
City as of and for the fiscal years ending September 30, 2010, 2011 and 2012 and will
provide additional documentation to the City, as more fully described in Attachment "A",
attached hereto and made a part hereof.
3. TERM. Subject to the provisions relating to the termination of this Agreement as set forth
in Paragraph 9 hereunder, the term of this Agreement shall begin upon the execution of this
Agreement and shall end upon the completion of Services described in Attachment "A", and
may be extended as necessary, in writing by the parties hereto.
1
C0910-061 Keefe, M( ATTACHMENT "A"
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-31 13 Fax
4. COMPENSATION. Payment to Consultant for all charges under this Agreement shall be
in accordance with this Agreement and a schedule of charges reflected in Attachment "A".
The fees for this engagement will be $37,500.00 for fiscal year 2010, $38,500.00 for fiscal
year 2011, and $39,500.00 for fiscal year 2012 (excluding Federal or Florida Single Audit
Act requirements — as reflected in Attachment "A"). The Federal or Florida Single Audit
fees, in the amount of$2,500 per fiscal year 2010, 2011, and 2012, will only be charged in
fiscal years that require a Federal or Florida Single Audit based on funding received.
5. STAFFING CHANGES. Engagement partners, managers, other supervisory staff and
specialists initially assigned to this Agreement between City and Consultant may be changed
if those personnel leave the firm, are promoted or are assigned to another office. These
personnel may also be changed for other reasons with the express written permission of the
City of Sunny Isles Beach. However, in either case, the City of Sunny Isles Beach retains the
right to approve or reject replacements who are subsequently assigned to this Agreement
between the City and Consultant.
6. INDEPENDENT CONTRACTOR RELATIONSHIP. The Consultant is an independent
contractor and shall be treated as such for all purposes. Nothing contained in this Agreement
or any action of the parties shall he construed to constitute or to render the Consultant an
employee, partner, agent, shareholder, officer or in any other capacity other than as an
independent contractor other than those obligations which have been or shall have been
undertaken by the City, Consultant shall he responsible for any and all of its own expenses in
performing its duties as contemplated under this Agreement. The City shall not be
responsible for any expense incurred by the Consultant. The City shall have no duty to
withhold any Federal income taxes or pay Social Security services and that such obligations
shall be that of the Consultant, other than those set forth in this Agreement. Consultant shall
furnish its own transportation, office and other supplies as it determines necessary in carrying
out its duties under this Agreement.
7. OWNERSHIP OF DOCUMENTS AND EQUIPMENT. The audit documentation for
this Contract is the property of Keefe, McCullough & Co., LLP and constitutes confidential
information. However, pursuant to authority given by law or regulation, Consultant may be
requested to make certain audit documentation available to the Auditor General or its
designee. a Federal agency providing direct or indirect funding, or the U.S. Government
Accountability Office for purposes of a quality review of the audit, to resolve audit findings,
or to carry out oversight responsibilities. Consultant will notify the City of any such request.
The audit documentation for this Contract will be retained for a minimum of three years
after the report release. No audit documentation will be destroyed without the consent of the
City. Consultant agrees to provide copies of audit documentation to the City or its designee
upon request.
C0910-061 Keefe, McCullough & Co., LLP Consultant Agreement
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
8. INDEMNIFICATION. Consultant agrees to indemnify and hold harmless, the City, its
officers, agents, and employees from, and against, any and all claims, actions, liabilities,
losses and expenses including, but not limited to, attorney's fees for personal, economic or
bodily injury, wrongful death, loss of or damage to property, at law or in equity, which may
arise or may be alleged to have risen from the negligent acts, errors, omissions or other
wrongful conduct of the Consultant, agents or other personal entity acting under Consultant's
control in connection with the Consultant's performance of Services pursuant to that
Agreement and to that extent the Consultant shall pay such claims and losses and shall pay
all such costs and judgments which may issue from any lawsuit arising from such claims and
losses including wrongful termination or allegations of discrimination or harassment, and
shall pay all costs and attorneys' fees expended by the City in defense of such claims and
losses including appeals. The parties agree that ten percent (10%) of the total compensation
is a specific consideration from the City to the Consultant for this indemnity.
9. TERMINATION.
A. If, through any cause within reasonable control, the Consultant shall fail to fulfill
in a timely manner or otherwise violate any of the covenants, agreements or
stipulations material to this Agreement, the City shall have the right to terminate
the Services then remaining to be performed. Prior to the exercise of its option to
terminate for cause, the City shall notify the Consultant of its violation of the
particular terms of the Agreement and grant Consultant ten (10) days to cure such
default. If the default remains uncured after ten (10) days the City may terminate
this Agreement.
(i.) In the event of termination, all finished and unfinished documents, data and
other work product prepared by Consultant (and sub consultant(s)) shall be
delivered to the City and the City shall compensate the Consultant for all
Services satisfactorily performed prior to the date of termination, as provided
in Paragraph 4 herein.
(ii.) Nothwithstanding the foregoing, the Consultant shall not be relieved of
liability to the City for damages sustained by it by virtue of a breach of the
Agreement by Consultant and the City may reasonably withhold payment to
Consultant for the purposes of set-off until such time as the exact amount of
damages due the City from the Consultant is determined.
B. Termination for Convenience of City. The City may, for its convenience
and without cause terminate the Services then remaining to be performed at any
time by giving Consultant ten (10) days written notice. The terms of Paragraphs
A(i) and A(ii) shall be applicable hereunder.
3
00910-061 Keefe, McCullough & Co., LLP Consultant Agreement
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
C. Termination for Insolvency. The City also reserves the right to terminate the
remaining Services to be performed in the event the Consultant is placed either in
voluntary or involuntary bankruptcy or makes any assignment for the benefit of
creditors.
10. ARBITRATION. It is the intention of the parties that whenever possible, if a dispute or
controversy arises hereunder then such dispute or controversy shall be settled by arbitration
in accordance with the procedures, rules and regulations of the American Arbitration
Association. The decision rendered by the Arbitrator shall be final and binding upon the
parties and judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction. Arbitration shall be held in Miami-Dade County, Florida. All costs of
arbitration and attorneys' fees incurred by the parties shall be paid by the non-prevailing
party or, if neither party prevails on the whole, each party shall be responsible for a portion
of the costs of arbitration and their respective attorneys' fees as may be determined by the
court on confirmation.
11 . WAIVER OF RIGHT TO JURY TRIAL. Each of the parties hereto hereby knowingly,
voluntarily and intentionally, waive the right which any may have to a jury trial in respect of
any action, proceeding, litigation or counterclaim based hereon or arising out of, under, on or
in connection with this agreement or any course of conduct, course of dealing, statements
(whether verbal or written) or actions of either of party.
12. CONFIDENTIAL INFORMATION. The Consultant shall not, either during the term of
this Agreement or any time for a period of TEN (10) years subsequent to that date upon
which the Consultant shall leave the employment of the City for any reason whatsoever,
disclose to any person or entity, other than in the discharge of the duties of the Consultant
under this Agreement, any information which the City designates in writing as "confidential."
As a violation by the Consultant of the provisions of this Section could cause irreparable
injury to the City and there is no adequate remedy at law for such violation, the City shall
have the right, in addition to any other remedies available to it at law or in equity, to enjoin
the Consultant in a court of equity for violating such provisions.
13. NOTICES. All notices and communications hereunder shall be in writing and shall be
deemed given when sent postage prepaid by registered or certified mail. return receipt
requested and, if intended for City to Rick Conner, City Manager with a copy to Hans
Ottinot, City Attorney, at City of Sunny Isles Beach, 18070 Collins Avenue, Sunny Isles
Beach, Florida 33160, and if intended for the Consultant, shall be addressed to William G.
Benson, CPA, Keefe, McCullough & Co., LLP, 6550 North Federal Highway, Suite 410,
Fort Lauderdale, FL 33308, Telephone (954) 771-0896. Fax (954) 938-9353.
14. GOVERNING LAW. This Agreement shall be governed by and construed in accordance
with the laws of the State of Florida. Venue shall be in Miami-Dade County, Florida.
4
00910-061 Keefe, McCullough & Co., LLP Consultant Agreement
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
15. AUDIT. The Consultant shall make available to the City or its representative all required
financial records associated with the Agreement for a period of THREE (3) years.
16. NON-DISCRIMINATION. The Consultant agrees to comply with all local and state civil
rights ordinances and with Title VI of the Civil Rights Act of 1984 as amended, Title VIII of
the Civil Rights Act of 1968 as amended, Title 1 of the Housing and Community
Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the
Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive
Order 11063, and with Executive Order 1 1248 as amended by Executive Orders 11375 and
12086. The Consultant will not discriminate against any employee or applicant for
employment because of race, color, creed, religion, ancestry, national origin, sex, disability
or other handicap, age, marital/familial status, or status with regard to public assistance. The
Consultant will take affirmative action to insure that all employment practices are free from
such discrimination. Such employment practices include but are not limited to the following:
hiring, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff,
termination, rates of pay or other forms of compensation, and selection for training, including
apprenticeship. The Consultant agrees to post in conspicuous places, available to employees
and applicants for employment, notices to be provided by the City setting forth the provisions
of this non-discrimination clause.
The Consultant agrees to comply with any Federal regulations issued pursuant to compliance
with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 708), which prohibits
discrimination against the handicapped in any Federally assisted program.
17. INSURANCE. Consultant shall, at its sole cost and expense, during the period of any
work being performed under this Agreement, procure and maintain the following
minimum insurance coverages to protect the City and Consultant against all loss, claims.
damage and liabilities caused by Consultant, its agents. contractors or employees, as
more particularly set forth below:
(a) Professional liability insurance: The limits of such liability provided by
such policy shall be no less than One Million Dollars ($1,000,000) combined
single limit occurrence.
(b) Workers' Compensation insurance to apply for all employees in compliance
with the Workers Compensation Law of the State of Florida and all applicable
federal laws.
(c) Business Automobile Liability Insurance with minimum limits of Five
Hundred Thousand Dollars ($500,000.00) per occurrence combined single limit
for Bodily Injury Liability and Property Damage Liability. Coverage must be
afforded on a form no more restrictive than the latest edition of the Business
5
C0910-061 Keefe, McCullough & Co., LLP Consultant Agreement
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
Automobile Liability Policy, without restrictive endorsements, as filed by the
Insurance Services Office and must include:
Owned vehicles.
Hired and non-owned vehicles.
Employers' non-ownership.
Such policies of insurance shall not diminish Consultants indemnification obligations
hereunder. The insurance policy shall be issued by such company, in such forms and
with such limits of liability and deductibles as are acceptable to the City and shall be
endorsed to be primary over any insurance, which the City may maintain. Before any
work under this Agreement is performed, and at any time upon request, Consultant shall
furnish to the City certificates of insurance evidencing the minimum required coverage
and appropriately endorsed for contractual liability with the City named as an additional
insured. All policies shall contain a waiver of subrogation endorsement. All policies and
certificates shall be in forms and issued by insurance companies acceptable to the City's
Risk Management Department. All insurance policies and certificates of insurance shall
provide that the policies may not be canceled or altered without thirty (30) calendar days
prior written notice to the City Manager or his designee.
18. CONFLICT OF INTEREST. The Consultant agrees to adhere to and be governed by the
Miami-Dade County Conflict of Interest Ordinance Section 2-11 .1, as amended: and by
the City of Sunny Isles Beach Ordinance No. 99-82, which are incorporated by reference
herein as if fully set forth herein, in connection with the Agreement conditions hereunder.
The Consultant covenants that it presently has no interest and shall not acquire any
interest, direct or indirectly which should conflict in any manner or degree with the
performance of the Services. The Consultant further covenants that in the performance of
this Agreement, no person having any such interest shall knowingly be employed by the
Consultant. No member of, or delegate to the Congress of the United States shall be
admitted to any share or part of this Agreement or to any benefits arising therefrom.
19. CONFLICTING PROVISIONS. The terns and conditions in this Agreement supersede
any other conflicting provisions that are contained in any other document, including but
not limited to any attachments hereto.
20 ENTIRE AGREEMENT. This Agreement contains the entire agreement of the parties,
and may be amended, waived, changed, modified, extended or rescinded only by a
writing signed by the party against whom any such amendment, waiver, change,
modification, extension and/or rescission is sought.
6
C0910-061 Keefe, McCullough & Co., LLP Consultant Agreement
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in triplicate
on the day and year first written above.
WITJ�IESSE
Z' Keefe,McCullough & Co-.) LLP
Signature
CLCYv e o. O n e r sc _ BY ��� � �?� '' 1�i
Print Name William G. $enson,CPA
WITNESISES:;
Signature
Print Name
ATTEST: CITY OF SUNNY ISLES BEACH
BY: ;` ` �- BY:
Jane A. Hines, CMC. City Clerk Norman S. Edelcup, Mayor
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY
BY
Hans Ottinot, City Attorney
7
C0910-061 Keefe, McCullough & Co., LLP Consultant Agreement
' y Keefe, McCullough & Co., LLP
Certified Public Accountants
September 7, 2010
Members of the City Commission
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, FL 33601
Dear City Commissioners:
We are pleased to confirm our understanding of the services we are to provide the
City of Sunny Isles Beach, Florida (the "City") for the years ended September 30, 2010,
2011 and 2012 with the option of auditing its financial statements for two additional
one-year terms. We will audit the financial statements of the governmental activities,
the business-type activities, each major fund, and the aggregate remaining fund
information, which collectively comprise the basic financial statements of the City of
Sunny Isles Beach as of and for the years ended September 30, 2010, 2011 and 2012.
Accounting standards generally accepted in the United States provide for certain
required supplementary information (RSI), such as management's discussion and
analysis (MD&A), to accompany the City's basic financial statements. As part of our
engagement, we will apply certain limited procedures to the City's RSI. These limited
procedures will consist principally of inquiries of management regarding the methods
of measurement and presentation, which management is responsible for affirming to
us in its representation letter. Unless we encounter problems with the presentation of
the RSI or with procedures relating to it, we will disclaim an opinion on it. The following
RSI is required by generally accepted accounting principles and will be subjected to
certain limited procedures, but will not be audited:
1 . Management's Discussion and Analysis.
2. Schedule of Funding Progress - Other Post Employment Benefits.
3. Budgetary Comparison Schedule - General Fund
4. Notes to Budgetary Comparison Schedule
Supplementary information other than RSI, also accompanies the City's basic financial
statements. We will subject the following supplementary information to the auditing
procedures applied in our audit of the basic financial statements and will provide an
opinion on it in relation to the basic financial statements:
1 . Schedule of Expenditures of Federal Awards and State Financial Assistance.
The following additional information accompanying the basic financial statements will
not be subjected to the auditing procedures applied in our audit of the financial
statements, and for which our auditor's report will disclaim an opinion:
1 . Introductory Section.
2. Statistical Section. ,�,U
Agenda Item f O
6550 N.Federal Highway Suite 410 Fort Lauderdale.FL 33308 954.771.0896 954.93! n
Date 9 - "l - 1 3
ATTACHMENT "A„
City of Sunny Isles Beach, Florida -2- September 7, 2010
Audit Objectives
The objective of our audit is the expression of opinions as to whether your basic
financial statements are fairly presented, in all material respects, in conformity with U.S.
generally accepted accounting principles and to report on the fairness of the
additional information referred to in the first paragraph when considered in relation to
the basic financial statements taken as a whole. The objective also includes reporting
on -
• Internal control related to the financial statements and compliance
with laws, regulations, and the provisions of contracts or grant
agreements, noncompliance with which could have a material effect
on the financial statements in accordance with Government Auditing
Standards.
• Internal control related to major programs and projects 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 or project in
accordance with the Single Audit Act Amendments of 1996 and OMB
Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations and the Department of Financial Services' State Projects
Compliance Supplement.
The reports on internal control and compliance will each include a statement that the
report is intended solely for the information and use of management, the body or
individuals charged with governance, others within the entity, specific legislative or
regulatory bodies, federal and state awarding agencies, and if applicable, pass-
through entities and is not intended to be and should not be used by anyone other
than these specified parties.
Our audit will be conducted in accordance with 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;
and Chapter 10.550, Rules of the Auditor General, and will include tests of accounting
records, a determination of major program(s) in accordance with OMB Circular A-133,
major project(s) in accordance with Chapter 10.550, Rules of the Auditor General, and
other procedures we consider necessary to enable us to express such opinions and to
render the required reports. If our opinions on the financial statements or the Single
Audit compliance opinions are other than unqualified, we will fully discuss the reasons
with you in advance. If, for any reason, we are unable to complete the audit or are
unable to form or have not formed opinions, we may decline to express opinions or to
issue a report as a result of this engagement.
City of Sunny Isles Beach, Florida -3- September 7, 2010
Management Responsibilities
Management is responsible for the basic financial statements and all accompanying
information as well as all representations contained therein. Management is also
responsible for preparation of the schedule of expenditures of federal awards and
state financial assistance in accordance with the requirements of OMB Circular A-133
and Chapter 10.550, Rules of the Auditor General. As part of the audit, we will assist
with preparation of your financial statements, schedule of expenditures of federal
awards and state financial assistance, and related notes. You are responsible for
making all management decisions and performing all management functions relating
to the financial statements, schedule of expenditures of federal awards and state
financial assistance, and related notes and for accepting full responsibility for such
decisions. You will be required to acknowledge in the management representation
letter our assistance with preparation of the financial statements and the schedule of
expenditures of federal awards and state financial assistance and that you have
reviewed and approved the financial statements, schedule of expenditures of federal
awards and state financial assistance, and related notes prior to their issuance and
have accepted responsibility for them. Further, you are required to designate an
individual with suitable skill, knowledge, or experience to oversee any nonaudit
services we provide and for evaluating the adequacy and results of those services
and accepting responsibility for them.
Management is responsible for establishing and maintaining effective internal controls,
including internal controls over compliance, and for monitoring ongoing activities, to
help ensure that appropriate goals and objectives are met. You are also responsible
for the selection and application of accounting principles; for the fair presentation in
the financial statements of the respective financial position of the governmental
activities, each major fund,und, and the aggregate remaining fund information of the City
and the respective changes in financial position in conformity with U.S. generally
accepted accounting principles; and for compliance with applicable laws and
regulations and the provisions of contracts and grant agreements.
Management is also responsible for making all financial records and related
information available to us and for ensuring that management and financial
information is reliable and properly recorded. Your responsibilities also include
identifying significant vendor relationships in which the vendor has responsibility for
program compliance and for the accuracy and completeness of that information.
Your responsibilities include adjusting the financial statements to correct material
misstatements and confirming to us in the representation letter that the effects of any
uncorrected misstatements aggregated by us during the current engagement and
pertaining to the latest period presented are immaterial, both individually and in the
aggregate, to the financial statements taken as a whole.
City of Sunny Isles Beach, Florida -4- September 7, 2010
You are responsible for the design and implementation of programs and controls to
p revent and detect fraud, and for informing us abou t all k no wn or
suspected fraud or
illegal acts affecting the government involving (1) management, (2) employees who
have significant roles in internal control, and (3) others where the fraud or illegal acts
could have a material effect on the financial statements. Your responsibilities include
informing us of your knowledge of any allegations of fraud or suspected fraud
affecting the government received in communications from employees, former
employees, grantors, regulators, or others. In addition, you are responsible for
identifying and ensuring that the entity complies with applicable laws, regulations,
contracts, agreements, and grants. Additionally, as required by OMB Circular A-133
and Chapter 10.550, Rules of the Auditor General, it is management's responsibility to
follow up and take corrective action on reported audit findings and to prepare a
summary schedule of prior audit findings and a corrective action plan.
Management is responsible for establishing and maintaining a process for tracking the
status of audit findings and recommendations. Management is also responsible for
identifying for us previous financial audits, attestation engagements, performance
audits, or other studies related to the objectives discussed in the Audit Objectives
section of this letter. This responsibility includes relaying to us corrective actions taken
to address significant findings and recommendations resulting from those audits,
attestation engagements, performance audits, or studies. You are also responsible for
providing management's views on our current findings, conclusions, and
recommendations, as well as your planned corrective actions, for the report and for
the timing and format for providing that information.
Audit Procedures—General
An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements; therefore, our audit will involve judgment about
the number of transactions to be examined and the areas to be tested. We will plan
and perform the audit to obtain reasonable rather than absolute assurance about
whether the financial statements are free of material misstatement, whether from (1 )
errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations
of laws or governmental regulations that are attributable to the entity or to acts by
management or employees acting on behalf of the entity. Because the determination
of abuse is subjective, Government Auditing Standards do not expect auditors to
provide reasonable assurance of detecting abuse.
Because an audit is designed to provide reasonable, but not absolute assurance and
because we will not perform a detailed examination of all transactions, there is a risk
that material misstatements or noncompliance may exist and not be detected by us.
In addition, an audit is not designed to detect immaterial misstatements or violations
of laws or governmental regulations that do not have a direct and material effect on
the financial statements or major programs. However, we will inform you of any
material errors and any fraudulent financial reporting or misappropriation of assets that
come to our attention. We will also inform you of any violations of laws or
governmental regulations that come to our attention, unless clearly inconsequential.
We will include such matters in the reports required for a Single Audit. Our responsibility
as auditors is limited to the period covered by our audit and does not extend to any
later periods for which we are not engaged as auditors.
City of Sunny Isles Beach, Florida -5- September 7, 2010
Our procedures will include tests of documentary evidence supporting the
transactions recorded in the accounts, and may include tests of the physical existence
of inventories, and direct confirmation of receivables and certain other assets and
liabilities by correspondence with selected individuals, funding sources, creditors, and
financial institutions. We will request written representations from your attorneys as part
of the engagement, and they may bill you for responding to this inquiry. At the
conclusion of our audit, we will require certain written representations from you about
the financial statements and related matters.
Audit Procedures—Internal Controls
Our audit will include obtaining an understanding of the entity and its environment,
including internal control, sufficient to assess the risks of material misstatement of the
financial statements and to design the nature, timing, and extent of further audit
procedures. Tests of controls may be performed to test the effectiveness of certain
controls that we consider relevant to preventing and detecting errors and fraud that
are material to the financial statements and to preventing and detecting
misstatements resulting from illegal acts and other noncompliance matters that have
a direct and material effect on the financial statements. Our tests, if performed, will
be less in scope than would be necessary to render an opinion on internal control and,
accordingly, no opinion will be expressed in our report on internal control issued
pursuant to Government Auditing Standards.
As required by OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General,
we will perform tests of controls over compliance to evaluate the effectiveness of the
design and operation of controls that we consider relevant to preventing or detecting
material noncompliance with compliance requirements applicable to each major
federal award program and state project. However, our tests will be less in scope than
would be necessary to render an opinion on those controls and, accordingly, no
opinion will be expressed in our report on internal control issued pursuant to OMB
Circular A-133 and Chapter 10.550, Rules of the Auditor General.
An audit is not designed to provide assurance on internal control or to identify
significant deficiencies. However, during the audit, we will communicate to
management and those charged with governance internal control related matters
that are required to be communicated under AICPA professional standards,
Government Auditing Standards, OMB Circular A-133 and Chapter 10.550, Rules of the
Auditor General.
Audit Procedures—Compliance
As part of obtaining reasonable assurance about whether the financial statements are
free of material misstatement, we will perform tests of the City's compliance with
applicable laws and regulations and the provisions of contracts and agreements,
including grant agreements. However, the objective of those procedures will not be
to provide an opinion on overall compliance and we will not express such an opinion
in our report on compliance issued pursuant to Government Auditing Standards.
City of Sunny Isles Beach, Florida -6- September 7, 2010
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 and projects. Our
procedures will consist of tests of transactions and other applicable procedures
described in the OMB Circular A-133 Compliance Supplement and Department of
Financial Services' State Projects Compliance Supplement for the types of compliance
requirements that could have a direct and material effect on each of the City's major
programs and projects. The purpose of these procedures will be to express an opinion
on the City's compliance with requirements applicable to each of its major programs
and projects in our report on compliance issued pursuant to OMB Circular A-133 and
Chapter 10.550, Rules of the Auditor General.
We understand that your employees will prepare all cash, accounts receivable, or
other confirmations we request, account analysis and reconciliations, and will locate
any documents selected by us for testing.
At the conclusion of the engagement, we will complete the appropriate sections of
the Data Collection Form that summarizes our audit findings. It is management's
responsibility to submit the reporting package (including financial statements,
schedule of expenditures of federal awards, summary schedule of prior audit findings,
auditors' reports, and corrective action plan) along with the Data Collection Form to
the federal audit clearinghouse. We will coordinate with you the electronic submission
and certification. If applicable, we will provide copies of our report for you to include
with the reporting package you will submit to pass-through entities. The Data
Collection Form and the reporting package must be submitted within the earlier of 30
days after receipt of the auditors' reports or nine months after the end of the audit
period, unless a longer period is agreed to in advance by the cognizant or oversight
agency for audits.
The audit documentation for this engagement is the property of Keefe, McCullough &
Co., LLP and constitutes confidential information. However, pursuant to authority
given by law or regulation, we may be requested to make certain audit
documentation available to an oversight agency or its designee, a federal or state
agency providing direct or indirect funding, or the U.S. Governmental Accountability
Office for purposes of a quality review of the audit, to resolve audit findings, or to carry
out oversight responsibilities. We will notify you of any such request. If requested,
access to such audit documentation will be provided under the supervision of Keefe,
McCullough & Co., LLP personnel. Furthermore, upon request, we may provide copies
of selected audit documentation to the aforementioned parties. These parties may
intend, or decide, to distribute the copies or information contained therein to others,
including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five
years after the report release or for any additional period requested by the oversight
agency. If we are aware that a federal or state awarding agency, pass-through
entity, or auditee is contesting an audit finding, we will contact the party(ies)
contesting the audit finding for guidance prior to destroying the audit documentation.
City of Sunny Isles Beach, Florida -7- September 7, 2010
We agree to the terms outlined in the City's Request for Proposal number 10-06-01 . We
further agree to all representations included in our firm's proposal submission dated
July 13, 2010.
Our fee for these services will be as stated in the accompanying Schedule of Audit
Fees. Our invoices for these fees will be rendered each month as work progresses and
are payable on presentation. The above fee contemplates the timely preparation of
various workpapers, financial statement schedules and other data by your personnel
and the assumption that unexpected circumstances will not be encountered during
the audit. If significant additional time is necessary we will discuss it with you and arrive
at a new fee estimate before we incur the additional costs. This agreement may be
renewed based on the mutual agreement to all terms, including fees, of both parties.
Government Auditing Standards require that we provide you with a copy of our most
recent external peer review report and any letter of comment, and any subsequent
peer review reports and letters of comment received during the period of the
contract. Our 2008 peer review report accompanies this letter.
We appreciate the opportunity to be of service to the City 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.
Regrds,1
KEEfF , N1CCULLOUGH & CO., LLP
William (k. Benson, C.P.A.
RESPONSE:
This letter correctly sets forth the understanding of the City of Sunny Isles Beach, Florida.
By:
Title:
Date:
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF AUDIT FEES
FOR THE YEARS ENDING 2010, 2011 AND 2012
AUDIT ITEM FY2010 FY 2011 FY 2012
Audit of the Financial Statements $ 32,500 $ 33,500 $ 34,500
Single Audit (Per Major Program/Project)' $ 2,500 $ 2,500 $ 2,500
Preparation, Editing and Printing of the
CAFR $ 5,000 $ 5,000 $ 5,000
Y These fees will only be charged in fiscal years that require a Federal or Florida Single Audit
based on funding received.
AJ (
Abbott, Jordan C&Koon, LLC
CERTIFIED PUSUC ACCOUNTANTS
To the Owners P.O.Box 609 0 405 Second Street 0 Manchester,GA 31816
Keefe, McCullough & Co., LLP
(706)846-8401 ❑Fax(706)846-3370
We have reviewed the system of quality control for the accounting and auditing practice
of Keefe, McCullough &Co., LLP (the firm)in effect for the year ended August 31, 2008.
A system of quality control encompasses the firm's organizational structure, the policies
adopted and procedures established to provide it with reasonable assurance of conforming
with professional standards. The elements of quality control are described in the
Statements on Quality Control Standards issued by the American Institute of Certified
Public Accountants (AICPA). The firm is responsible for designing a system of quality
control and complying with it to provide the firm reasonable assurance of conforming with
professional standards in all material respects. Our responsibility is to express an opinion
on the design of the system of quality control and the firm's compliance with its system of
quality control based on our review.
Our review was conducted in accordance with standards established by the Peer
Review Board of the AICPA. During our review,we read required representations from the
firm, interviewed firm personnel and obtained an understanding of the nature of the firm's
accounting and auditing practice, and the design of the firm's system of quality control
sufficient to assess the risks implicit in its practice. Based on our assessments, we
selected engagements and administrative files to test for conformity with professional
standards and compliance with the firm's system of quality control. The engagements
selected represented a reasonable cross-section of the firm's accounting and auditing
practice with emphasis on higher-risk engagements. The engagements selected included
among others, audits of Employee Benefit Plans and engagements performed under
Government Auditing Standards. Prior to concluding the review, we reassessed the
adequacy of the scope of the peer review procedures and met with firm management to
discuss the results of our review. We believe that the procedures we performed provide
a reasonable basis for our opinion.
In performing our review,we obtained an understanding of the system of quality control
for the firm's accounting and auditing practice. In addition, we tested compliance with the
firm's quality control policies and procedures to the extent we considered appropriate.
These tests covered the application of the firm's policies and procedures on selected
engagements. Our review was based on selected tests therefore it would not necessarily
detect all weaknesses in the system of quality control or all instances of noncompliance
with it. There are inherent limitations in the effectiveness of any system of quality control
and therefore noncompliance with the system of quality control may occur and not be
detected. Projection of any evaluation of a system of quality control to future periods is
subject to the risk that the system of quality control may become inadequate because of
changes in conditions, or because the degree of compliance with the policies or
procedures may deteriorate.
MEMBERS OF
AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
GEORGIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
Page 2 of 2
In our opinion,the system of quality control for the accounting and auditing practice of
Keefe, McCullough & Co., LLP in effect for the year ended August 31, 2008, has been
designed to meet the requirements of the quality control standards for an accounting and
auditing practice established by the AICPA and was complied with during the year then
ended to provide the firm with reasonable assurance of conforming with professional
standards.
Manchester, Georgia
October 29, 2008
AM(
(AICPAA
FICPA Peer Review Program AICPA Peer Review Program
Administered in Florida by the Administered in Florida by the
Florida institute of CPAs Florida Institute of CPAs.
February 26,2009
Joseph D. Leo,CPA
Keefe,McCullough&Co.,LLP
6550 N Federal Hwy.,Ste. 410
Fort Lauderdale,FL 33308-1417
Dear Mr. Leo:
It is my pleasure'to notify you that on February 26, 2009 the Florida Peer Review
Committee accepted the report on the most recent peer review of your firm. The due date
for your next review is February 29, 2012. This is the date by which all review
documents should be completed and submitted to the administering entity. Since your
firm's due date falls between January and April, you may arrange to have your review a
few months earlier to avoid having a review during tax season.
As you know, the reviewer's opinion was unmodified. The Committee asked me to
convey its congratulations to the firm.
Sincerely,
Paul N.Brown
Peer Review
Director of Technical Services
cc: David C. Jordan, CPA
Finn Number: 10036786 Review Number: 271343
Letter ID:75470
325 West College Ave •P.O.Box 5437•Tallahassee,FL 32314•(B50)224-2727•(800)342.3197(within Florida only)•Fax(850)222-8190
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1V/4 Philadelphia Indemnity Insurance Company
One Bala Plaza, Suite 100, Bala Cynwyd, Pennsylvania 19004
COMMON POLICY DECLARATIONS
Policy Number: PHSD565142
Named Insured and Mailing Address: Producer: 5528
Keefe, McCullough & Co., LLP THE PLASTRIDGE AGENCY, INC.
6550 N Federal Hwy Ste 410 9660 W. SAMPLE ROAD #103
Fort Lauderdale, FL 33308 CORAL SPRINGS, FL 33065
Policy Period From: 10/11/2010 To: 10/11/2011 at 12.01 A.M.Standard Time at your mailing
address shown above.
Business Description: CPA
IN RETURN FOR THE PAYMENT OF THE PREMIUM,AND SUBJECT TO ALL THE TERMS OF THIS
POLICY, WE AGREE WITH YOU TO PROVIDE THE INSURANCE AS STATED IN THIS POLICY.
THIS POLICY CONSISTS OF THE FOLLOWING COVERAGE PARTS FOR WHICH A PREMIUM IS
INDICATED. THIS PREMIUM MAY BE SUBJECT TO ADJUSTMENT.
PREMIUM
Commercial Property Coverage Part
Commercial General Liability Coverage Part
Commercial Crime Coverage Pad
Commercial Inland Marine Coverage Part
Commercial Auto Coverage Part
Businessowners
Workers Compensation
Accountants 49,676.99
Total $ 49,676.99
Total Includes Fees and Surcharges (See Schedule Attached) 863.99
FORM(S) AND ENDORSEMENT(S) MADE A PART OF THIS POLICY AT THE TIME OF ISSUE
Refer To Forms Schedule
'Omits applicable Forms and Endorsements if shown in specific Coverage Part/Coverage Form Declarations
CPD- PIIC (01/07) +r"�c44$ *07 c� fr+ 2��,-=.
Countersignature Date Authorized Representative
PI-ACT-1 (11-97)
JAR
Philadelphia Insurance Companies
airs
One Bala Plaza, Suite 100, Bala Cynwyd, Pennsylvania 19004
ACCOUNTANTS PROFESSIONAL LIABILITY INSURANCE POLICY
Philadelphia Indemnity Insurance Company
O Philadelphia Insurance Company
DECLARATIONS
Policy Number: PHSD565142
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:
Keefe, McCullough & Co., LLP
6550 N Federal Hwy Ste 410
Fort Lauderdale, FL 33308
Item 2. Limits of Liability: (A) $ 2,000,000 each CLAIM, including CLAIMS EXPENSE
(B) S 4,000,000 Annual Aggregate including CLAIMS EXPENSE
Item 3. Deductible: 3 5,000 Deductible per CLAIM
Item 4. POLICY PERIOD: From: 10/11/2010 To: 10/11/2011
(12:01 A.M. local time at the address shown in Item 1.)
Item 5. Premium: S 49,676.99
Item 6. Retroactive Date: FULL PRIOR ACTS
Endorsements: Per Schedule Attached
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.
fes,%XrE87 i."
Authorized Representative Countersignature
Countersignature Date
Page 1 of 1
WORKERS COIvirENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY
Insurer: FCCI INSURANCE COMPANY Carrier Number: 24570
6300 UNIVERSITY PKWY Policy Number: 001-WC10A-39871
SARASOTA, FL 34240-8424 Prior Policy Number: 001-WCO9A-39871
INFORMATION PAGE
1. The Insured: KEEFE MCCULLOUGH & CO LLP
Mailing Address: 6550 N FEDERAL HWY STE 410
FORT LAUDERDALE, FL 33308-1417
Business Status: Partnership
Risk ID Number: 091430207 FEIN Number: 591363792
Other workplaces not shown above:
2. The policy period is from 01/01/10 12:01 AM to 01/01/11 12:01 AM at the Insured's Mailing Address.
3. A. Workers' Compensation Insurance: Part One of the policy applies to the Workers' Compensation law of the
state(s) listed here: FLORIDA
B. Employers b"
Liability Insurance: Part Two of the policy applies to work in each state listed in Item 3.A. The
limits of our liability under Part Two are:
Bodily Injury by Accident $100,000 each accident
Bodily Injury by Disease $500,000 policy limit
Bodily Injury by Disease $100,000 each employee
C. Other States Insurance: Part Three of the policy applies to the states, if any, listed here:
All states and U.S. territories except North Dakota, Ohio, Washington,
Wyoming, Puerto Rico, the U.S. Virgin Islands, and
states designated in Item 3.A. of the Information Page.
D. This policy includes these endorsements and schedules: WC000000 A(4/92 ) W0000001 A(5/98)
W0000308 WC000414 WC000419 WC090303
WC090403 A WC090606 WC990602 (5-97) WC990609
4. The premium for this policy will be determined by our Manuals of Rules, Classifications, Rates and Rating Plans.
All information required below is subject to verification and change by audit.
SEE EXTENSION OF INFORMATION PAGE
Total Estimated Policy Premium: $4,613
Minimum Premium: $220
Program Type: Gold Advantage Plan G . Jacobs
Agency Name: 320, Plastridge/Delray Beach President
Agency Location: Delray Beach, FL
Agency Phone Number: (561) 276-5221
Countersigned by
Authorized Representative
WC000001 A
Copyright 1987 National Council on Compensation Insurance
EZ0108, Rev. 4/99 Page 1
WORKERS COMPENSATION AND EMPLOYERS LIABILITY INSURANCE POLICY
Insured Name: KEEFE MCCULLOUGH & CO LLP
Policy Number: 001-WC10A-39871
Agency Name: 320, Plastridge/Delray Beach
PREMIUM CALCULATION
Extension of Information Page WC 00 00 01 A Item 4: FLORIDA
Estimated
Classification Code Remuneration Rate Premium
AUDIT, ACCT, COMP SYS PRG-TRVL 8803 2,310, 761 $. 18 $4,159
CLERICAL NO DUTIES OUT OF OFC 8810 $4 $.26 $0
Manual Premium $4, 159
Premium Subject to Experience Modification $4,159
Experience Modification Factor 0.95
Standard Premium $3,951
Plus: Expense Constant $200
Plus: Terrorism $462
Estimated Annual Premium $4,613
WC 00 00 01 A
Copyright 1987 National Council on Compensation Insurance
EZO102, 2/96 Page 2
00NY is City of Sunny Isles Beach Norman S. Edelcup, Mayor
o`S, ' Fro, 18070 Collins Avenue Isaac Aelion, Vice Mayor
It
Sunny Isles Beach, Florida 33160 Jeanette Gatto, Commissioner
0 = Jennifer Levin, Commissioner
305.947.0606 City Hall George "Bud" Scholl, Commissioner
`. 305.949.3113 Fax
P Christopher J. Russo, City Manager
Q P
9?. \ 4,
tiF c T F` N ��5 Hans Ottinot, City Attorney
r OF SUN
Jane A. Hines, CMC, City Clerk
MEMORANDUM
TO: Honorable Mayor Edelcup and City Commission
VIA: Christopher J. Russo, City Manager
FROM: Audra K. Curts-Whann, Finance Director
DATE: September 3, 2013
RE: Exercise One Year Renewal Option for Independent Audit Services
RECOMMENDATION:
Based upon the satisfactory review by Mr. Robert J. Lilienfeld, CPA, of the adequacy of
independent audit services provided by Keefe, McCullough & Co LLP, staff is
recommending the Commission approve exercising the first of two renewal options with
the firm for audit services for FY 2012/13 for an amount not to exceed $45,500 which
includes audit services, single audit for State & Federal grants (if applicable) and for the
preparation, editing and printing of the Comprehensive Annual Financial Report
(CAFR).
RATIONALE:
Keefe, McCullough & Co LLP has audited the City of Sunny Isles Beach for the past
three fiscal years. Annually, this firm has devoted the resources necessary to issue the
City's financial statements by January's commission meeting. The team assigned to the
City has been professional and worked diligently with staff to effectively audit the City's
financial records.
The extension period fee is only a $1,000 increase from the previous year.
FUNDING SOURCE:
Funding will be available in account 10-513-5320 and is included in the 2013/14 budget.
S�NNr ,5z� City of Sunny Isles Beach Norman S. Edelcup, Mayor
o se 18070 Collins Avenue Isaac Aelion, Vice Mayor
Sunny Isles Beach, Florida 33160 Jeanette Gatto, Commissioner
Jennifer Levin, Commissioner
305.947.0606 City Hall George "Bud"Scholl, Commissioner
++ •+ 305.949.3113 Fax
oP P Christopher J. Russo, City Manager
F Lo
'
rr o f su r°c Hans Ottinot, City Attorney
oN
Jane A. Hines, CMC, City Clerk
MEMORANDUM
TO: Honorable Mayor Edelcup and City Commission
FROM: Christopher J. Russo, City Manager
DATE: August 29, 2013
RE: Review of Independent Auditor's Performance
In accordance with Article 4, Subsection C-4.10 entitled "Independent Audit", the City is
required to review the adequacy of our Independent Auditor's performance in order to
continue their service for the two year option period provided for in the current contract
with Keefe, McCullough & Co., LLP.
To assist with the City in determining the adequacy of performance, the Charter
provides for several methods to accomplish this task. One of the methods is by having a
certified public accountant make such determination.
To accomplish this task and at no cost to the City, Mr. Robert J. Lilienfeld, C.P.A., had
graciously volunteered to review past audits, the City's current financials, and meet with
myself and the Mayor to give us his findings. Mr. Lilienfeld, for those of you who may
not know, was the Chair of the City's first Charter Commission, and is credited with the
creation of our original City Charter.
Mr. Lilienfeld met with us on August 14, 2013 after conducting his review of the City's
financial information and other related material pertinent to this subject. We discussed
the general financial condition of the City, the work product of the current auditor, and
the recent staffing issues within the Finance Department. It was his determination, with
our concurrence, that the auditors have met the requirement of the Charter and that all
the work was well within acceptable levels, and that we should evoke our option, with
the intent to re-bid the service in the last year of the contract.
c: Hans Ottinot, City Attorney
Jane A. Hines, City Clerk
Audra Curts-Whann, Finance Director