HomeMy WebLinkAboutReso 2014-2234RESOLUTION NO. 2014- 4
A RESOLUTION OF THE CITY OF SUNNY ISLES BEACH,
FLORIDA, APPROVING THE SECOND 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 -THREE THOUSAND FIVE HUNDRED
DOLLARS ($43,500.00), 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, on September 10, 2010 via Resolution No. 2010 -1596, the City Commission
awarded Request for Proposal No. 10 -06 -01 and 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, on September 19, 2013 via Resolution No. 2013 -2103 , the City Commission
approved the First Amendment to the Agreement with Keefe, McCullough & Co., LLP to provide
annual auditing services for a one (1) year period, in the amount of $45,000.00 for Fiscal Year
2012/2013; and
WHEREAS, the City being satisfied with Keefe, McCullough & Co. wishes to exercise the
second and final option to renew the Agreement for one additional year; and
WHEREAS, the City desires to enter into the Second Amendment to the Agreement with
Keefe, McCullough & Co., LLP to provide annual auditing services for a one (1) year period, in an
amount not to exceed Forty -Three Thousand Five Hundred Dollars ($43,500.00), 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 Second Amendment to the Agreement. The City Commission hereby
approves the Second 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 -Three
Thousand Five Hundred Dollars ($43,500.00), attached hereto as Exhibit "A ".
Section 2. Authorization of Mayyor. The Mayor is hereby authorized to execute said Agreement.
Section 3. Authorization of City Manager. The City Manager is hereby authorized to do all
R2014- Auditor Srvs Keefe Mccullough
things necessary to effectuate this Resolution.
Section 4. Effective Date. This Resolution is effective upon passage.
PASSED AND ADOPTED this 15 °i day of May 2014.
ATTEST:
Jane A. Hines, MMC, City Clerk
Approved As o Form and
Legal Su�incy:
City Attorney
rman S. Edelcup,
Moved by: \ \ ov ���WQ
Seconded by: �YVWYNNSISAIOCC L Gt" T I)
Vote: 4-6—�
Mayor Edelcup (Yes) (No)
Vice Mayor Aelion �7(Yes) (No)
Commissioner Gatto V(Yes) (No)
Commissioner Levin (Yes) (No)
Commissioner Scholl. (Yes) (No)
82014- Auditor Srvs Keefe Mccullough
„Ne+T ist
SECOND AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF SUNNY ISLES BEACH AND
KEEFE, MCCULLOUGH & CO., LLP
CONTRACT NO. C1314 -049
This Second Amendment to the Agreement between the City of Sunny Isles Beach ( "City")
and Keefe, McCullough & Co., LLP, ( "Consultant ") executed this y'► day of (A _, 2014,
is made a part of the original Agreement ( "Agreement "), dated October 28, 2010 the City
and Consultant whose Federal Identification # is 5A • 13 (,3 ?q"L The City and
Consultant hereby agree as follows:
1. ELECTION OF OPTION TO RENEW. The City hereby wishes to exercise its second
option to renew the Agreement for one (1) year for the period ending September 30, 2014, to provide
annual auditing services, in an amount not to exceed Forty Three Thousand Five Hundred Dollars
($43,500.00), as more particularly described in Attachment "A ", which is attached hereto and
incorporated herein by reference.
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, and
attached hereto and incorporated herein by reference as Attachment "B ", shall remain in full force
and effect.
3. CONFLICTING PROVISIONS: If there is a conflict or inconsistency between any term,
statement, requirement, or provision of any exhibit attached hereto, or any document or events
referred to herein, or otherwise incorporated by reference, the term, statement, requirement, or
provision contained in this Second Amendment shall prevail and be given superior effect and priority
over any conflicting or inconsistent term, statement, requirement or provision contained in any other
document or attachment, including but not limited to Attachments "A" and Attachment `B ".
IN WITNESS WHEREOF, the parties hereto have executed this document as of the date
mentioned above.
WI SS• KEEFE, MCCULLOU & CO., LLP
Signature
BY: P
Wil ram G. U onj CPA
Print Name
ATTEST:
Jane A. Hines, VMC, City Clerk
CITY OF SUNNY ISLES BEACH
S. Edelcup, Mayor
AS TO)FORM AND
not, City Attorney
Keefe, McCullough & Co., LLP
Certified Public Accountants
April 8, 2014
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 year ended September 30, 2014.
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 year ended September 30, 2014. 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. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board
who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. As
part of our engagement, we will apply certain limited procedures to the City's RSI in
accordance with auditing standards generally accepted in the United States of
America. These limited procedures will consist of inquiries of management regarding
the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial
statements. We will not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence
to express an opinion or provide any assurance. The following RSI is required by
generally accepted accounting principles and will be subjected to certain limited
procedures, but will not be audited:
1. Management's Discussion and Analysis.
2. Schedule of Funding Progress - Other Post - Employment Benefits.
We have also been engaged to report on supplementary information other than RSI
that accompanies the City's financial statements. We will subject the following
supplementary information to the auditing procedures applied in our audit of the
financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records
used to prepare the financial statements or to the financial statements themselves,
and other additional procedures in accordance with auditing standards generally
accepted in the United States of America and will provide an opinion on it in relation
to the financial statements as a whole in a report combined with our auditor's report
on the financial statements:
6550 N. Federal Highway Suite 410 Fort Lauderdale, FL 33308 954.771.0896 954.938.9353 (F) www.kmccpa.com
ATTACHMENT "A"
City of Sunny Isles Beach, Florida -2- April 8, 2014
1. Schedule of Expenditures of Federal Awards and State Financial Assistance.
2. Budgetary comparison schedules for General Fund and Major Special
Revenue Funds.
3. Other Financial Information
The following other information accompanying the basic financial statements will not
be subjected to the auditing procedures applied in our audit of the financial
statements, and our auditors' report will not provide an opinion or any assurance on
that other information:
1. Introductory Section.
2. Statistical Section.
Audit Objectives
The objective of our audit is the expression of opinions as to whether your basic
financial statements are fairly presented, in all material respects, in conformity with U.S.
generally accepted accounting principles and to report on the fairness of the
supplementary information referred to in the second 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 Government Auditing Standards report on internal control over financial reporting
and on compliance and other matters will include a paragraph that states (1) that the
purpose of the report is solely to describe the scope of testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the entity's internal control or on compliance, and (2) that the report is
an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity's internal control and compliance. The OMB
Circular A -133 and Chapter 10.550, Rules of the Auditor General report on internal
control over compliance will include a paragraph that states that the purpose of the
report on internal control over compliance is solely to describe the scope of testing of
internal control over compliance and the results of that testing based on the
requirements of OMB Circular A -133 and Chapter 10.550, Rules of the Auditor General.
Both reports will state that the report is not suitable for any other purpose.
City of Sunny Isles Beach, Florida -3- April 8, 2014
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 programs) 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. We
will issue written reports upon completion of our Single Audit. Our reports will be
addressed to the City Commission. We cannot provide assurance that unmodified
opinions will be expressed. Circumstances may arise in which it is necessary for us to
modify our opinions or add emphasis -of- matter or other - matter paragraphs. If our
opinions on the financial statements or the Single Audit compliance opinions are other
than unmodified, we will 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 issue reports, or may withdraw from
this engagement.
Management Responsibilities
Management is responsible for the financial statements, schedule of expenditures of
federal awards and state financial assistance and all accompanying information as
well as all representations contained therein. Management is also responsible for
identifying all federal and state awards received and understanding and complying
with the compliance requirements, and for preparation of the schedule of
expenditures of federal awards and state financial assistance (including notes and
noncash assistance received) 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. These nonaudit
services do not constitute an audit under Government Auditing Standards and such
services will not be conducted in accordance with Government Auditing Standards.
You agree to assume all management responsibilities relating to the financial
statements, schedule of expenditures of federal awards and state financial assistance,
related notes, and any other nonaudit services we provide. 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 agree to oversee the nonaudit services by designating an
individual, preferably from senior management, who possesses suitable skill,
knowledge, or experience; evaluate the adequacy and results of those services; and
accept responsibility for them.
Management is responsible for (a) establishing and maintaining effective internal
controls, including internal controls over compliance, and for evaluating and
monitoring ongoing activities, to help ensure that appropriate goals and objectives
are met; (b ) following laws and regulations; (c) ensuring that there is reasonable
assurance that government programs are administered in compliance with
compliance requirements; and (d) ensuring that management is reliable and financial
information is reliable and properly reported. Management is also responsible for
implementing systems designed to achieve compliance with applicable laws,
regulations, contracts, and grant agreements. You are also responsible for the
selection and application of accounting principles; for the preparation and fair
presentation of the financial statements 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.
City of Sunny Isles Beach, Florida -4- April 8, 2014
Management is also responsible for making all financial records and related
information available to us and for the accuracy and completeness of that
information. You are also responsible for providing us with (1) access to all information
of which you are aware that is relevant to the preparation and fair presentation of the
financial statements, (2) additional information that we may request for the purpose of
the audit, and (3) unrestricted access to persons within the government from whom
we determine it necessary to obtain audit evidence.
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
management 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
affecting the government involving (1) management, (2) employees who have
significant roles in internal control, and (3) others where the fraud 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. Management is also responsible for taking timely and
appropriate steps to remedy fraud and noncompliance with provisions of laws,
regulations, contracts, and grant agreements, or abuse that we report. 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.
You are responsible for preparation of the schedule of expenditures of federal awards
and state financial assistance (including notes and noncash assistance received) in
conformity with OMB Circular A -133 and Chapter 10.550, Rules of the Auditor General.
You agree to include our report on the schedule of expenditures of federal awards
and state financial assistance in any document that contains and indicates that we
have reported on the schedule of expenditures of federal awards and state financial
assistance. You also agree to include the audited financial statements with any
presentation of the schedule of expenditures of federal awards and state financial
assistance that includes our report thereon or make the audited financial statements
readily available to intended users of the schedule of expenditures of federal awards
and state financial assistance no later than the date the schedule of expenditures of
federal awards and state financial assistance is issued with our report thereon. Your
responsibilities include acknowledging to us in the written representation letter that (a)
you are responsible for presentation of the schedule of expenditures of federal awards
and state financial assistance in accordance with OMB Circular A -133 and Chapter
10.550, Rules of the Auditor General; (b) you believe the schedule of expenditures of
federal awards and state financial assistance including its form and content, is fairly
presented in accordance with OMB Circular A -133 and Chapter 10.550, Rules of the
Auditor General; (c) the methods of measurement or presentation have not changed
from those used in the prior period (or, if they have changed, the reasons for such
changes); and (d) you have disclosed to us any significant assumptions or
interpretations underlying the measurement or presentation of the schedule of
expenditures of federal awards and state financial assistance.
City of Sunny Isles Beach, Florida -5- April 8, 2014
You are also responsible for the preparation of the other supplementary information,
which we have been engaged to report on, in conformity with U.S. generally
accepted accounting principles. You agree to include our report on the
supplementary information in any document that contains and indicates that we
have reported on the supplementary information. You also agree to include the
audited financial statements with any presentation of the supplementary information
that includes our report thereon or make the audited financial statements readily
available to users of the supplementary information no later than the date the
supplementary information is issued with our report thereon. Your responsibilities
include acknowledging to us in the written representation letter that (a) you are
responsible for presentation of the supplementary information in accordance with
GAAP; (b) that you believe the supplementary information, including its form and
content, is fairly presented in accordance with GAAP; (c) the methods of
measurement or presentation have not changed from those used in the prior period
or, if they have changed, the reasons for such changes); and (d) you have disclosed
o us any significant assumptions or interpretations underlying the measurement or
presentation of the supplementary information.
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. An audit also
includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements. We will plan and
Fthe 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 of the inherent limitations of an audit, combined with the inherent limitations
of internal control, 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, even though the audit is properly planned and performed
in accordance with U.S. generally accepted auditing standards and Government
Auditing Standards. 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 the appropriate level of management of any material errors and any
fraudulent financial reporting or misappropriation of assets that come to our attention.
We will also inform the appropriate level of management of any violations of laws or
governmental regulations that come to our attention, unless clearly inconsequential
and of any material abuse that comes to our attention. We will include such matters
in the reports required for a Single Audit. Our responsibility as auditors is limited to the
period covered by our audit and does not extend to any later periods for which we
are not engaged as auditors.
City of Sunny Isles Beach, Florida -6- April 8, 2014
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
your responsibilities for the financial statements; schedule of expenditures of federal
awards and state financial assistance; federal and state award programs; compliance
with laws, regulations, contracts, and grant agreements; and other responsibilities
required by generally accepted auditing standards.
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 or material weaknesses. 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 -7- April 8, 2014
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.
Engagement Administration, Fees and Other
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.
We will provide copies of our reports to the City; however, management is responsible
for distribution of the reports and the financial statements. Unless restricted by law or
regulation, or containing privileged and confidential information, copies of our reports
are to be made available for public inspection.
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 -8- April 8, 2014
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 2011 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.
Regards,
KEEFE, MCCULLOUGH & CO., LLP
&�� e4&vtt
Cynthia L. Calvert, C.P.A.
RESPONSE:
This letter correctly sets forth the understanding of the City of Sunny Isles Beach, Florida.
M
Title:
Date:
CITY OF SUNNY ISLES BEACH, FLORIDA
SCHEDULE OF AUDIT FEES
FOR THE YEAR ENDING 2014
AUDIT ITEM
Audit of the Financial Statements
Single Audit
Preparation, Editing and Printing of the CAFR
FY2014
$ 36,000
$ 2,500
$ 5,000
* These fees will only be charged in fiscal years that require a Federal or Florida Single Audit
based on funding received.
SvNY^SF
J Z
CITY OF SUNNY ISLES BEACH
°•° KEEFE, MCCULLOUGH & CO., LLP CONSULANT AGREEMENT
CONTRACT NO: C0910 -061
THIS CONTRACTUAL AGREEMENT (hereinafter referred to as the "Agreement ")
is made this ;f day of Oelna6g , 2010, by and between the CITY OF SUNNY
ISLES BEACH, Florida, (hereinafter referred to as "City "), and KEEFE, MCCULLOUGH &
CO., L (hereinafter referred to as "Consultant ") whose Federal I.D. # is
S9 . J`3 (o3 71-1
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 perforni these Services.
NOW THEREFORE, in consideration of the foregoing and for the mutual covenants,
representations and \\ arranties and other good and valuable consideration. the receipt and
adequacy of \vhich 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
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 tei-ni nation 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.
00910 -061 Keefe, Mc ATTACHMENT "B"
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947 -0606 phone (305) 949 -3113 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 be 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 be 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 finding, or the U.S. Goveiiiment
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.
2
C0910 -061 Keefe, McCullough & Co., LLP Consultant Agreement
City of Sun►►y 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 perforniance 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 terns 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 enact 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 Sunity 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
anv 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 or dealing, statements
(whether verbal or written) or actions of either of party.
12. CONFIDENTIAL INFORMATION. The Consultant shall not, either during the tern 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, Cih, 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 ViIl 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 11248 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,
tennination, 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 terms 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.
WITAIESSE
Z.
Signature
' Wrneka. VOn 'Terse
Print Name
WITN W ES:�,
Signature
Print Name
ATTEST:
I
BY:
.lane A. Hines, CMC. City Clerk
7
Keefe, McCullough & Cq) LLP
BY: \�4 My-
William G. gen on,'ePA
CITY OF SUNNY ISLES BEACH
BY:
Nornian S. Edelcup, Mayor
APPROVED AS TO FORNI AND
LEGAL SUFFICIENCY
i
BY:
Hans (*inot, City Attorney
00910 -061 Keefe, McCullough & Co., LLP Consultant Agreement
2 17
F ♦ FEQe' *�
TO:
VIA:
FROM:
DATE:
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947 -0606 City Hall
(305) 949 -3113 Fax
MEMORANDUM
The Honorable Mayor and City Commission
Christopher J. Russo, City Manager
Audra K. Curts - Whann, Finance Director
5/15/2014
RE: Second Amendment to the Agreement with Keefe, McCullough &
Co. LLP for professional auditing services for a period of one year,
in an amount not to exceed $43,500.
RECOMMENDATION:
Recommend approval of Resolution.
REASONS:
As we are satisfied with the services provided by Keefe, McCullough & Co LLP
for professional auditing services, we wish to extend the agreement for the
second and final one year renewal period.
FUNDING SOURCE:
10- 513 -5320 $43,500
Operating Budget/Finance
ATTACHMENTS:
. Resolution
. Second Amendment
Agenda Item No.l OA
Date 5/15/2014
113