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CITY OF SUNNY ISLES BEACH, FLORIDA Professional Independent Auditing Services RFP NO. 22-02-01 March 7, 2022 Moises D. Ariza, CPA, CGMA, Partner One SE 3rd Avenue, Suite 1100, Miami, FL 33131 Phone: 305.995.9612 moises.ariza@marcumllp.com i March 7, 2022 Sunny Isles Beach Government Center City Clerk 18070 Collins Avenue, 4th Floor Sunny Isles Beach, FL 33160 Marcum LLP (“Marcum” or the “Firm”) is pleased to respond to RFP No. 22-02-01 to provide professional independent auditing services for the City of Sunny Isles Beach, Florida (the “City”). For over 70 years, Marcum, a national Top 15 Firm, has provided professional services to the public sector, including counties, local governments, government pension plans, public utilities, charter schools, community redevelopment agencies, special districts and other government entities. We believe our service, technical competency, and value to you will be unparalleled. Some of our key qualities that will benefit the City include: SIGNIFICANT EXPERIENCE IN THE PUBLIC SECTOR In the past year alone, the Florida region of Marcum has performed more than 40 audits of government entities. At a national level, we provide services to more than 250 government entities. We have extensive experience in the Federal and Florida Single Audit Acts including the OMB Uniform Guidance. SMALL-FIRM CARE AND ATTENTION WITH LARGE-FIRM RESOURCES Our local-office approach provides the personal service and timely communication of a small firm with access to the resources and capabilities of a large firm, resulting in the City receiving the best of both worlds. We have approximately 300 associates in our Florida offices, located in Miami, Coral Gables, Fort Lauderdale, West Palm Beach, and Tampa. EXPERIENCED TEAM We have assembled a dedicated team whose skills and experience match the requirements of the City. The proposed client service and audit engagement partner, Moises D. Ariza, CPA has extensive experience in performing audits of government entities. All decisions that affect the planning, execution, and completion of the proposed audit will be made by Moises. His vast experience serving Florida government entities brings a wealth of knowledge and allows us to be more efficient and effective to the City. He will be supported by a quality control director, Beila Sherman, CPA; IT risk audit director, Jose Antigua, CISA; audit manager, Nicholas Martin, CPA; and an audit supervisor, Elad Lerner. SMOOTH TRANSITION Our extensive experience with transitioning new clients has led to a streamlined process that is respectful of your time and resources. As a result, you’ll receive the benefit of a new team with significant government experience as well as a fresh look at your systems, with minimal disruption. AUDIT QUALITY The issues of audit quality and technical proficiency are important matters for consideration. We ensure that professional standards are exceeded on all of our engagements through a robust quality control system that encompasses: Partner and Manager Review Process, Professional Development, Technical Support, Internal Inspections, and the AICPA Peer Review Process. ii Our technical competencies will be essential over the next several years with the implementation of new significant standards set by the Governmental Accounting Standards Board. This assistance will be provided at no additional cost to the City. COMPLEMENTARY RESOURCES THAT ADD VALUE BEYOND THE AUDIT We are committed to providing our clients with educational insights and timely updates on matters relevant to their industry through complimentary webinars, newsletters, and other communications Additionally, annually we offer a full day government CPE seminar (Marcum’s Government Symposium) featuring both local and national speakers. This seminar is geared towards offering our clients training on key audit and accounting issues at no cost to the City. PROACTIVE COMMUNICATION & PARTNERSHIP Perhaps the quality that best describes Marcum is our ability to go beyond the routine, to provide an extra dimension in quality, effort and service to our clients. The members of our firm are always accessible and are sensitive to your needs. We will be available to answer questions, discuss audit issues, and provide solutions throughout the year. We believe that this commitment sets Marcum apart from other firms. This proposal will detail our methodology and how we will work with the City to develop a strong partnership. We will perform an audit on the financial statements of the City of Sunny Isles Beach, Florida for a period of three (3) fiscal years beginning wih fiscal year ending September 30, 2022 with the option to renew for an additional two (2) years. We acknowledge receipt of all addendums and are committed to perform the work within the time period defined in the RFP. Marcum is independent of the City and its agencies as defined by generally accepted auditing standards and Government Auditing Standards issued by the Comptroller General of the United States. We welcome the opportunity to answer any questions and to provide further information regarding our services and experience. Thank you for your consideration. Sincerely, Moises D. Ariza, CPA, CGMA Partner, Government Services Authorized to represent and contractually bind the Firm moises.ariza@marcumllp.com PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 1 TABLE OF CONTENTS Transmittal Letter……………………………………..………………….….i-ii Section 1: Company Information ............................................................ 2 Section 2: Firm’s Qualifications .............................................................. 5 Section 3: Qualifications of Key Personnel Assigned To Engagement 15 Section 4: Approach/Methodology ........................................................ 27 Section 5: References .......................................................................... 38 Section 6: Cost of Services ................................................................... 39 Section 7: Contract Forms .................................................................... 40 Section 8: Exceptions ........................................................................... 41 Appendix A: Peer Review Reports Appendix B: Licenses Appendix C: Required Forms Appendix D: Insurance Requirements Appendix E: Reference Letters Appendix F: Management Letters PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 2 SECTION 1: COMPANY INFORMATION ABOUT US Marcum LLP is a national accounting and advisory services firm dedicated to helping clients like the City achieve their goals. As a Top 15 firm, we have 37 offices in major business markets across the U.S. and select international locations with more than 2,500 associates and more than 300 partners nationwide. The Florida region of Marcum has offices in Miami, Coral Gables, Fort Lauderdale, West Palm Beach, and Tampa. Marcum is structured as a Limited Liability Partnership and was founded in 1951. For more information about our background, please visit our website at www.marcumllp.com. LOCAL TEAM The audit will be staffed from Marcum’s Miami office located at One SE 3rd Avenue, Suite 1100, Miami, FL 33131. SUNBIZ LEGAL STATUS Marcum LLP is registered with the Florida Division of Corporations (sunbiz.org) as a Limited Liability Partnership, through Document No. LLP090003311, FEI/EIN No. 11-1986323, file date May 28, 2009. LITIGATION There have been no litigation claims resulting from an audit engagement involving governmental clients made against the firm that would threaten the viability of the firm or the performance of this contract. INSURANCE Certificates of insurance are provided in Appendix D of the proposal. NO PRIOR ENGAGEMENTS WITH THE CITY Marcum LLP has no prior engagements with the City of Sunny Isles Beach or its agencies in the past five (5) years. Marcum affirms that there have been no reported conflict of interests in relation to this solicitation. Performing the services described in the RFP will not create any potential conflict of interest with the interest of existing clients. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 3 QUALITY CONTROL AND PEER REVIEW The quality of our professional practice is of utmost importance to the Firm, our clients, and to the users of our reports. As such, we maintain a quality control program that ensures our internal policies are met and professional standards are exceeded on all of our engagements. To ensure that the Firm's performance is in conformity with our stated standards and those issued by the American Institute of Certified Public Accountants (AICPA), our quality control system encompasses the following: Professional Development. Marcum provides a minimum of 40 hours (five days) of continuing professional education (CPE) in-house to all professional staff. These seminars include sessions in accounting, auditing, financial reporting, and internal controls. In addition to the in-house training, our partners and professional staff attend various outside seminars. Internal Inspections. Annually the Firm selects a random sample of accounting, auditing, advisory and tax engagements and performs a review to ensure compliance with firm policies and professional standards. Centralized Financial Statement Review Process. The quality control department performs a review of our audit binders and financial statements prior to the release of the finished product. Their involvement includes participation in engagement planning to approve the audit approach, review of high risk and complex areas throughout fieldwork and a review of the financial statements and related information. Their involvement in the planning and fieldwork stages helps eliminate any last minute surprises and assures the high level of quality we demand from our professionals is maintained. PCAOB Inspections. Marcum is registered with the Public Company Accounting Oversight Board (PCAOB) and is required to undergo annual inspections due to our large SEC practice. The PCAOB inspects our work on public company filings. And the inspection is even more rigorous than the peer review process. The PCAOB reports are publicly available. Peer Review. The Firm participates in an external quality review program requiring an on-site independent examination of our Accounting and Auditing practice. The Firm has consistently received clean opinions (rating of “Pass”) on the quality of the Firm’s audit practice. This is the highest level of achievement and recognition in the peer review program. Please refer to Appendix A for a copy of our two (2) latest peer review reports which include our government engagements. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 4 INDEPENDENT OF THE CITY OF SUNNY ISLES BEACH Marcum’s policy is that all professional personnel be familiar with and adhere to the independence, integrity, and objectivity rules, regulations, interpretations, and rulings of the American Institute of Certified Public Accountants, the state Board of Accountancy and state CPA societies, relevant statutes, and applicable regulatory agencies. In addition, all professionals – from partner to staff auditor – are required to sign affidavits annually attesting to their independence. Marcum LLP is independent of the City as defined by Generally Accepted Auditing Standards and the U.S. General Accounting Office’s Government Auditing Standards. Marcum’s quality control document contains detailed policies related to maintaining independence. These policies are the most stringent policies adopted by the AICPA and the various state boards of accountancy. Engagement team members are required to consider any possible situations where independence may be impaired during the acceptance or continuance process and if any arise during the performance of an engagement. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 5 SECTION 2: FIRM’S QUALIFICATIONS MARCUM LLP is a national accounting and advisory services firm dedicated to helping clients like the City achieve their goals. Since 1951, clients have chosen Marcum for our deep expertise and insightful guidance in helping them forge pathways to success, whatever challenges they’re facing. Marcum offers a complete spectrum of tax, assurance and advisory services, as well as an extensive portfolio of industry-focused practices with specialized expertise for the public sector including local government entities. As part of the Marcum Group, the Firm also provides a full complement of technology, wealth management, executive search and staffing, and strategic marketing services. Headquartered in New York City, Marcum has 37 offices in major business markets across the U.S. and select international locations. CLIENT-DRIVEN Understanding the governmental sector and helping clients identify their needs and meet their challenges, and uncovering opportunities that propel them towards success is Marcum’s mission. Our own success is based on our commitment to building meaningful, trusted relationships with our clients, creating positive service experiences, and delivering unexpected value wherever and whenever we can, while maintaining our professional independence and objectivity. Our assurance professionals, most who have been focused in the government arena throughout their entire careers, have an in-depth understanding of the complex economic and political environment in which these entities operate. Their knowledge and experience allow us to provide the highest level of professional service to our government clients. COMMITMENT TO EXCELLENCE From the way we service clients to the training and development of our professionals, Marcum is committed to excellence in every aspect of our operation. Our focus on client success compels us to look beyond the numbers to see the opportunities, challenges, and solutions in every engagement. Innovation, proactivity, teamwork, and open communication are the hallmarks of our approach. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 6 STRENGTH IN SERVING THE PUBLIC SECTOR GOVERNMENT SERVICES For over 70 years, Marcum has successfully provided professional auditing, accounting, financial reporting and management advisory/consulting services to a broad spectrum of government entities, including preparing government financial statements and performing Federal and Florida Single Audits. Annually we perform more than 250 government entity audits, 300 employee benefit plan audits, and 200 Single Audit engagements. The assurance services we provide to government entities includes single audits, pension audits, compliance audits, forensic audits, IT audits, internal audits, GASB implementation, financial statement audits, and Annual Financial Report preparation and assistance, performance or operational reviews and a wide range of consulting services for local governments. In addition, the partner and quality control director on the proposed engagement team have been instrumental in assisting clients with the implementation of new pronouncements. Most recently, to note significant GASB pronouncements, the team assisted our clients with the implementation of GASB Statement No. 88, Certain Disclosure Related to Debt, including Direct Borrowings and Direct Placements and GASB Statement No. 84, Fiduciary Activities. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 7 SINGLE AUDITS We have conducted hundreds of federal, state, and local Single Audits and are knowledgeable of all requirements under OMB Uniform Guidance and the State of Florida Single Audit Act To stay on top of changing audit requirements, our firm participates in various AICPA trainings and our team receives annual single audit training that involves all aspects of a single audit, including internal controls, compliance, financial reporting, the Data Collection Form, Yellow Book and audit effectiveness. A significant portion of this training also includes discussion about single audit quality and current topics discussed in the AICPA Audit Guides and Audit Risk Alerts. We leverage our training and experiences across the Firm to benefit our clients through improved audit methodology and work programs. Furthermore, we proactively ensure all of our affected clients understand the impact of any new regulations on their organization. Since we perform a substantial amount of single audits annually, our single audit working papers are routinely reviewed by federal and state agencies as well as peer reviewers. We have not had any findings regarding substandard work and, in fact, have had many positive comments about the excellent quality of our audit files. With this experience, we are able to provide a robust amount of knowledge as it relates to the City and your engagement team has the necessary expertise to assist you with Federal and Florida single audits. IT RISK AND ASSURANCE Our IT Risk and Assurance Services team can assess your information risk management and operational effectiveness. We can then provide you with privacy, compliance and technology consulting solutions. Experienced professionals hold CISA, CISSP, CISM, CRISC, or CPA accreditations along with many years of experience in bringing unique solutions to your business and IT needs. This unique combination allows us to start with your business challenges and then tailor IT solutions to match your needs. Our IT Risk and Assurance Services team helps clients achieve optimum results in their ability to manage IT risk, mitigate those risks, and improve performance with cost-effective solutions. Our goal is to deliver practical solutions to the problem of “digital insecurity”, which means helping to identify the most cost effective ways to address specific concerns regarding IT-related compliance and control issues relevant to your environment and needs. In addition, the IT Risk and Assurance Services team can design and implement ERP solutions that will integrate your operations more efficiently. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 8 As a result of our robust expertise, Marcum was named a Best Firm for Technology by Accounting Today, an independent third party, in its review of accounting firms that are innovating the use of technology to build more responsive, profitable and sustainable practices. ROBOTIC PROCESS AUTOMATION At Marcum LLP, we understand that government entities are always looking to stay at the forefront of innovation. Technological advances are transforming concepts that seemed impossible just a few year ago into today’s reality. Our goal as your trusted advisor is to provide you with the most cutting-edge resources available to streamline your work processes while delivering the best possible return on your investment. Marcum’s team of consulting and technology experts offer clients Robotic Process Automation “Bot” Services. These services have the capability to change the way our clients are conducting business by automating and in many cases eliminating manual process that employees would be otherwise spending hours to complete. Utilizing Digital Workers can replace many tedious functions and tasks that are time consuming and often prone to human error, including data entry, periodic reporting and accounts payable invoicing. They can also be used to generate and distribute reports, process inbound leads, and retrieve data from the web. Currently Marcum has used Bots to help local governments address ADA compliance, as well as other repetitive functions. Marcum affirms its ability to create an Annual Financial Report (AFR) which complies with the provisions of the ADA. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 9 INTERCONNECTED SERVICES Our group provides interconnected professional services to help government entities achieve their operational, strategic and compliance goals. Our service offerings grew from government entities seeking our advice beyond audit and compliance and our drive to do more for these organizations like the City. By providing a vast array of expertise and service lines to support our clients operations, our capacity and passion to serve and strengthen every aspect of our clients’ operations remains unparalleled. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 10 FLORIDA-BASED TEAM The audit will be staffed from Marcum’s Miami office located at One SE 3rd Avenue, Suite 1100, Miami, FL 33131, but the resources from all of our offices are available to us. For this proposed engagement, we have assembled an audit team whose skills and experience match the requirements of the City. All team personnel are full-time employees of Marcum LLP. OUR GOVERNMENT SERVICES GROUP Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation. A national firm with 37 offices throughout the U.S., Grand Cayman and internationally, Marcum is ranked as a Top 15 firm in the United States of America. The Florida Region of Marcum includes offices in Miami, Coral Gables, Fort Lauderdale, West Palm Beach and Tampa. We have a complete government service team of 46 locally based individuals and more than 2,500 associates nationwide. The size of our Florida team is as follows: Personnel Total CPA Government Specialist Partners 32 32 3 Directors 21 11 2 Senior Managers 23 17 2 Managers 25 16 3 Supervisors 33 14 3 Seniors 54 21 11 Staff Accountants 54 9 20 Operations 40 0 2 TOTAL 282 120 46 PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 11 SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES The following represents several engagements similar to the engagement described in the RFP performed in the last five (5) years by Moises D. Ariza, the designated audit partner. 1. City of Homestead and CRA 100 Civic Court, Homestead, FL 33030 Carlos Perez, Finance Director, cperez@cityofhomestead.com 305-224-4543 Services: Financial Audit, Single Audit, GOB Audit, The Children’s Trust Audit Term: September 30, 2009 to Current Total Hours: 1,300 Audit Contract Fee: $133,960 per year 2. Miami-Dade Water & Sewer Department (Miami-Dade County) 3071 SW 38th Ave, Room 440-10, Miami, FL 33146 Josephine Barrios, Controller, josephine.barrios@miamidade.gov 786-552-8935 Services: Financial Audit and Single Audit Term: September 30, 2007 to Current Total Hours: 1,200 Audit Contract Fee: $175,000 per year 3. City of Deerfield Beach and CRA 150 NE 2nd Avenue, Deerfield Beach, FL 33441 Stephanie Tinsley, Finance Director, stinsley@deerfield-beach.com 954-420-5571 Services: Financial Audit, Single Audit, Pension Audit Term: September 30, 2015 to Current Total Hours: 1,000 Audit Contract Fee: $132,500 per year 4. Village of Key Biscayne 88 West McIntyre Street, Key Biscayne, FL 33149 Benjamin L. Nussbaum. Finance Director, 305-365-8919 Services: Financial Audit, Single Audit, and Pension Audit Term: September 30, 2009 to Current Total Hours: 400 Audit Contract Fee: $63,000 per year 5. Village of Palmetto Bay 9705 E. Hibiscus Street, Palmetto Bay, FL 33157 Desmond Chin, Finance Director, dchin@palmettobay-fl.gov Services: Financial Audit, Single Audit, GOB Compliance Term: September 30, 2020 to Current Total Hours: 400 Audit Contract Fee: $63,650 per year PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 12 OUR COMMITMENT AND COMMUNICATION Clear and timely communications are critical to delivering the highest quality services. Throughout our engagement, we will consistently communicate our findings, recommendations and other observations to management. We will provide management with status reports during the course of our engagement. Such reports are an effective method to communicate initial findings and questions and to eliminate surprises at the end of the engagement. At the completion of the engagement, we will meet with you to review the results of our procedures, which will include required communications as defined by professional standards and our observations and recommendations for improvements. Marcum affirms our ability to meet or exceed the requirements of the RFP. WORKLOAD The Firm does not anticipate any issues meeting the City’s desired audit timeline. One of the many advantages of choosing Marcum as your auditor is that our South Florida government team has significant knowledge and understanding of the City and its operations. The combination of our Firm’s resources, level of partner involvement and experienced team members provides an excellent service team of professionals capable of servicing your needs. Having a complete government service team of 46 locally based individuals and more than 2,500 associates nationwide allows us to meet or exceed client deadlines. Regular communication will be ongoing with City personnel, allowing for timely knowledge of matters as they arise. When we learn of matters the City may not be aware of, we will be active in conveying relevant information. We understand the audit, accounting and financial reporting requirements affecting your City. As with other issues that may arise, we will work with Management throughout the year to achieve the appropriate resolution. LICENSE TO PRACTICE IN FLORIDA We affirm that Marcum LLP, a Limited Liability Partnership, is a licensed certified public accounting firm and is in good standing with all regulatory agencies. The Firm is a member of the American Institute of Certified Public Accountants (AICPA) and the Florida Institute of Certified Public Accountants (FICPA). All professional staff, upon successful completion of the CPA exam, become members of both the AICPA and their respective state society of CPAs. The Firm is properly licensed and certified to practice in Florida and is registered annually with the Florida Department of Business and Professional Regulation – Board of Accountancy. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 13 All key team members assigned to this engagement are licensed to practice in the state of Florida. Each individual on the engagement has maintained the required CPE in government accounting and has attended an Ethics course for CPAs in Florida. All applicable licenses are provided in Appendix B. ACTIVE PARTICIPATION ON BOARDS AND COMMITTEES The partners, directors, and managers of the Firm are actively involved in recognized standard- setting organizations at the national, state and local level. These organizations include the Florida Government Finance Officers Association (FGFOA), Florida Association of Special Districts (FASD), Miami-Dade League of Cities, and the Florida League of Cities (FLC). Marcum is also a member of the AICPA Employee Benefit Plan Audit Quality Center (EBPAQC) and the AICPA’s Governmental Audit Quality Center (GAQC). Our involvement in these organizations further demonstrates our commitment to the public sector and helps keep us on top of issues affecting government entities. MCSJ/EDMUNDS EXPERIENCE Technology at Marcum is about much more than any specific infrastructure, system, software program, or application. Our team approach is designed to help you embrace change and deliver the actionable insights and additional value that helps your organization grow and succeed. As a result of serving government entities for the past 70 years, we have had the oppurtunity to recently work with entities using MCSJ/Edmunds ERP solutions. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 14 LIST OF CURRENT GOVERNMENT CLIENTS 1.) Miami-Dade County 2.) Broward County 3.) Palm Beach County: 4.) Monroe County: Florida Keys Aqueduct Authority City of Florida City City of Florida City CRA City of Homestead City of Homestead CRA City of Miami Firefighters & Police Officers Retirement Trust Clair T. Singerman Employees’ Retirement System Miami-Dade County (WASD) Miami Police Relief and Pension Fund North Miami Police Pension Plan North Miami Special Police Officers’ Fund The Children's Trust of Miami-Dade County Town of Bay Harbor Islands Town of Bay Harbor Islands ERS Town of Surfside Town of Surfside Employees’ Retirement Plan Village of Key Biscayne Village of Palmetto Bay Broward County (IT Dept.) City of Deerfield Beach City of Deerfield Beach CRA City of Fort Lauderdale Police and Firefighters Retirement System City of Hollywood City of Hollywood CRA City of Hollywood GERS City of Pompano Beach Police and Firefighters Retirement System City of Sunrise City of Boca Raton City of Boca Raton CRA City of Boca Raton ERP City of Boca Raton GERS City of Boca Raton Police Police and Firefighters Retirement System City of Boynton Beach City of Delray Beach City of Palm Beach Gardens East Central Regional Wastewater Treatment Facilities Operations Board Healthy Start Coalition of Palm Beach County Northern Palm Beach County Improvement District Palm Beach County Housing Finance Authority The Children's Services Council of Palm Beach County Town of Jupiter Town of Palm Beach Town of Palm Beach Retirement System Village of Palm Springs Village of Royal Palm Beach Village of Tequesta PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 15 ENGAGEMENT TEAM STRUCTURE Moises D. Ariza CPA, CGMA Lead Engagement Partner Nicholas Martin CPA Senior Audit Manager Jose Antigua CISA, COBIT, ACDA, ACT IT Risk Audit Director QUALITY CONTROL ASSURANCE IT AUDITOR SECTION 3: QUALIFICATIONS OF KEY PERSONNEL ASSIGNED TO ENGAGEMENT DEDICATED PROFESSIONALS FOR THE CITY The team members proposed for the City have comprehensive industry knowledge and possess the critical regulatory, technical, and business process skills necessary to provide you with an effective and efficient audit. These professionals are well-versed in the complexities of governmental accounting, Moises D. Ariza, Nicholas Martin, and Elad Lerner are “key” team members. We anticipate key team members to remain consistent over the term auditing, and financial reporting, including all GASB pronouncements, Federal and Florida Single Audit Acts, OMB Uniform Guidance, CRA operations, and State Laws and Rules of the Auditor General. of the engagement. However, we guarantee that for any staff changes, new staff will be comparable in experience and continuing education requirements. Removal or replacement of key team members are subject to approval by the City prior to the beginning of each audit. Elad Lerner Audit Supervisor Audit Staff Beila Sherman CPA Quality Control Director PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 16 MOISES D. ARIZA, CPA, CGMA PARTNER ASSURANCE SERVICES 305.995.9612 moises.ariza@marcumllp.comriza@marcumllp.com PRACTICE FOCUS Financial Audits Federal & Florida Single Audits Financial Reporting Program-Specific Compliance Audits INDUSTRY FOCUS Local Governments Government Pension Plans ERISA Pension Plans Special Districts Nonprofits Wholesale & Retail Distributors Manufacturers EDUCATION Bachelors of Accounting – Florida International University Masters of Accounting – St. Thomas University Masters of Accounting – St. Thomas University *Licensed by the State of Florida #AC45440 Moises D. Ariza is a partner in the Firm's Assurance Division. He has more than thirteen years of experience in the accounting profession providing accounting, assurance and advisory services to a wide range of clients. Much of his client base includes nonprofit organizations, local governments, employee benefit plans, manufacturing companies and retail entities. In addition, Mr. Ariza has significant expertise in performing Federal and Florida Single Audits in accordance with OMB Uniform Guidance and the Florida Single Audit Act, as well as program-specific compliance audits. Mr. Ariza is involved in all phases of the audit process, from planning and initial risk assessment to ensuring compliance with all State and Federal laws, and the preparation and review of financial statements. He is a qualified peer reviewer and regularly performs peer reviews under the AICPA Peer Review Program. Within the firm, Mr. Ariza develops in-house training seminars for the Firm’s professional staff as well as continuing education programs for various outside organizations. Moises is an active team leader in the Firm's Employee Benefit Plan Group, Nonprofit Sector and Government Services Group. Professional & Civic Affiliations Chartered Global Management Accountant (CGMA) American Institute of Certified Public Accountants (AICPA) Florida Institute of Certified Public Accountants (FICPA) Government Finance Officers Association (GFOA) GFOA Special Review Committee, Active Member Association of Latin Professionals in Finance and Accounting, Member (ALPFA) Miami-Dade, Broward and Palm Beach County League of Cities, Associate Member South Florida Government Finance Officers Association, Associate Member Florida Government Finance Officer Association, Member (FGFOA) YMCA of South Florida, Finance Committee Member Awards & Accolades Top 20 Professionals Under 40, Brickell Magazine, 2021 Young Horizons Award, Florida Institute of CPAs, 2021 Articles, Seminars & Presentations Navigating through GASB No. 68, Published Article The Importance of Governmental Financials, FGFOA Conference GASB Statement No. 68, 2015 Marcum Governmental Symposium Government Auditing Standards and OMB Uniform Guidelines, Internal Training Risk Assessment and Audit Approach, Internal Training Related Party Transactions, Internal Training Employee Benefit Plans, Internal Training CPE Hours (three years) Government 145 Other (Accounting, Auditing, Technical and Behavioral) 60 Total 205 PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 17 MOISES D. ARIZA CURRENT AND FORMER GOVERNMENT CLIENTS Government Experience Year on Job Pension Audit Single Audit CRA Broward County 2 ✓ ✓ Children’s Services Council of Broward County 5 ✓ City of Boca Raton 7 ✓ ✓ ✓ City of Coconut Creek 5 ✓ ✓ City of Deerfield Beach 5 ✓ ✓ ✓ City of Florida City 10 ✓ ✓ ✓ City of Hallandale Beach 5 ✓ ✓ ✓ City of Hialeah 2 ✓ ✓ ✓ City of Hialeah Gardens 1 ✓ City of Hollywood 5 ✓ ✓ ✓ City of Homestead 12 ✓ ✓ City of Miramar 2 ✓ ✓ City of North Miami 3 ✓ ✓ ✓ City of North Miami Beach 3 ✓ ✓ ✓ City of Palm Beach Gardens 5 ✓ City of Pompano Beach 5 ✓ ✓ ✓ City of Sunrise 10 ✓ City of West Palm Beach 5 ✓ ✓ ✓ East Central Regional Wastewater Treatment Facilities 2 Indian Creek Village 2 Florida Keys Aqueduct Authority 4 ✓ ✓ Miami-Dade Water & Sewer Department 10 ✓ ✓ Northern Palm Beach County Improvement District 5 The Children’s Service Council of Palm Beach County 2 ✓ The Children’s Trust 6 Town of Bay Harbor Islands 8 ✓ ✓ Town of Cutler Bay 1 Town of Palm Beach 2 ✓ ✓ Town of Southwest Ranches 5 ✓ Town of Surfside 5 ✓ ✓ Village of Key Biscayne 10 ✓ ✓ Village of Palmetto Bay 2 ✓ Village of Tequesta 3 ✓ PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 18 BEILA SHERMAN, CPA DIRECTOR ASSURANCE SERVICES 305.995.9600 x38032 beila.sherman@marcumllp.comoise.arizarcumllp.com PRACTICE FOCUS Financial Audits Federal Single Audits Florida Single Audits Operational & Performance Reviews Agreed-Upon Procedures Attestation Services Advisory Services Peer Reviews INDUSTRY FOCUS Local Governments Nonprofit Organizations CIRA Organizations Wholesale & Retail Distributors Manufacturers Construction Companies Real Estate Companies EDUCATION Bachelor of Business Administration, Mount Saint Vincent University Beila Sherman has more than 25 years of experience providing accounting, auditing and advisory services for a wide range of entities. As a Director in the Firm’s Assurance division, her primary responsibilities include on-site supervision and review of audit engagements to ensure they are prepared in accordance with professional and Firm standards. Ms. Sherman provides guidance to clients ranging from complex accounting issues to general business and accounting developments. She has significant experience in the evaluation of internal controls. In addition, Ms. Sherman develops in-house training seminars for the Firm’s professional staff as well as continuing education courses for various outside organizations, on current accounting and auditing matters. She is actively involved in the division’s professional development activities. Professional & Civic Affiliations American Institute of Certified Public Accountants (AICPA) Florida Institute of Certified Public Accountants (FICPA) Florida Institute of Certified Public Accountants - CIRA Section Government Finance Officers Association (GFOA) Canadian Institute of Chartered Accountants (CPA) South Florida Government Finance Officers Association, Associate Member (SFGFOA) Miami-Dade, Broward and Palm Beach Counties Leagues of Cities Articles & Presentations Internal CPE Training, Instructor “Governmental Accounting (GASB) and Government Auditing Standards”, Internal Training “Federal and Florida Single Audits Acts”, Internal Training Florida School of Government Finance Instructor FGFOA Presenter FASD Presenter CPE Hours (three years) Government 168 Other (Accounting, Auditing, Technical and Behavioral) 40 Total 208 PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 19 BEILA SHERMAN CURRENT AND FORMER GOVERNMENT CLIENTS Government Experience Year on Job Pension Audit Single Audit CRA Bal Harbour Village 8 ✓ ✓ Broward County 5 ✓ ✓ Children’s Services Council of Broward County 5 ✓ City of Aventura 3 City of Boca Raton 9 ✓ ✓ ✓ City of Coconut Creek 5 ✓ ✓ City of Deerfield Beach 3 ✓ ✓ ✓ City of Florida City 15 ✓ ✓ ✓ City of Hallandale Beach 6 ✓ ✓ ✓ City of Hialeah 6 ✓ ✓ ✓ City of Hollywood 3 ✓ ✓ ✓ City of Homestead 10 ✓ ✓ City of Marathon 5 ✓ City of Miami 4 ✓ City of Miami Springs 7 ✓ City of Miramar 8 ✓ ✓ City of North Miami 15 ✓ ✓ ✓ City of North Miami Beach 15 ✓ ✓ ✓ City of Oakland Park 4 City of Palm Beach Gardens 5 ✓ ✓ City of Pembroke Pines 10 ✓ ✓ City of Pompano Beach 3 ✓ ✓ ✓ City of Sunny Isles Beach 5 City of Sunrise 8 ✓ City of West Palm Beach 5 ✓ ✓ ✓ Florida Keys Aqueduct Authority 7 ✓ ✓ Miami-Dade Water & Sewer Department 12 ✓ ✓ Miami Shores Village 8 ✓ Northern Palm Beach County Improvement District 9 The Children’s Trust 6 ✓ Town of Bay Harbor Islands 15 ✓ ✓ Town of South Palm Beach 4 Town of Surfside 8 ✓ ✓ Village of Key Biscayne 15 ✓ ✓ Village of Tequesta 5 ✓ PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 20 NICHOLAS MARTIN, CPA MANAGER ASSURANCE SERVICES 305.995.9629 nicholas.martin@marcumllp.comumllp.com AREAS OF EXPERTISE Financial Audits Federal Single Audits Florida Single Audits Program-Specific Compliance Audits PRACTICE FOCUS Local Governments Nonprofit Organizations Government Pension Plans Special Districts Wholesale & Retail Distributors Manufacturers EDUCATION Master of Accounting, Florida International University Bachelors of Science, Accounting, University of Florida Mr. Martin is a manager in the Firm’s Assurance Division. He has more than 6 years of experience in the accounting profession providing accounting, and auditing, for local government and private enterprises across a variety of industries, both domestically and internationally. He provides services to a wide range of clients within the aforementioned industries, these include: manufacturing, nonprofit (museums, charter schools, etc.), telecommunication, and employee benefit plans. In addition, Mr. Martin has significant expertise in performing Federal and Florida Single Audits in accordance with OMB Uniform Guidance and the Florida Single Audit Act, as well as program-specific compliance audits. Mr. Martin is involved in all phases of the audit process, from planning and initial risk assessment to ensuring compliance with all State and Federal laws, and the preparation and review of financial statements. He is client service driven and is always willing to assist clients with accounting, auditing and financial reporting issues, including but not limited to, implementation of new accounting pronouncements. During all phases of the audit, Mr. Martin will be 100% dedicated to the City of Sunny Isles Beach, Florida. Professional & Civic Affiliations American Institute of Certified Public Accountants (AICPA) Miami-Dade, Broward and Palm Beach County League of Cities, Associate Member South Florida Government Finance Officers Association, Associate Member Florida Government Finance Officer Association, Member (FGFOA) YMCA Young Professionals, Board Member CPE Hours (three years) Government 109 Other (Accounting, Auditing, Technical and Behavioral) 38 Total 147 PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 21 NICHOLAS MARTIN CURRENT AND FORMER GOVERNMENT CLIENTS Government Experience Year on Job Pension Audit Single Audit CRA Children’s Services Council of Broward County 2 ✓ City of Boca Raton 4 ✓ ✓ ✓ City of Coconut Creek 5 ✓ ✓ City of Deerfield Beach 6 ✓ ✓ ✓ City of Florida City 6 ✓ ✓ ✓ City of Hallandale Beach 4 ✓ ✓ ✓ City of Hollywood 2 ✓ ✓ ✓ City of Homestead 5 ✓ ✓ City of Miramar 2 ✓ ✓ City of Palm Beach Gardens 5 ✓ City of Pompano Beach 5 ✓ ✓ ✓ City of Sunrise 5 ✓ City of West Palm Beach 5 ✓ ✓ ✓ Indian Creek Village 2 Florida Keys Aqueduct Authority 6 ✓ ✓ Miami-Dade Water & Sewer Department 5 ✓ ✓ The Children’s Trust 4 Town of Bay Harbor Islands 6 ✓ ✓ Town of Surfside 6 ✓ ✓ Village of Key Biscayne 6 ✓ ✓ Village of Tequesta 6 ✓ PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 22 JOSE L. ANTIGUA, CISA, CISM, CDPSE, ACDA, COBIT DIRECTOR ADVISORY SERVICES 305.995.9600 x38054 jose.antigua@marcumllp.comcumllp.com PRACTICE FOCUS IT Audits Application Reviews Security Assessments SOC 1, 2, 3 Internal Control & Risk Management CAAT (including CA and CCM) INDUSTRY FOCUS Local Governments Nonprofit Organizations Financial Services Healthcare IT Service Retails EDUCATION Bachelors in Systems Engineering, Instituto Tecnologico de Santo Domingo (INTEC) Masters of Accounting – St. Thomas University *Licensed by the State of Florida #AC45440 José Antigua is a Director in the Firm's Risk Advisory Division. Mr. Antigua has nearly 15 years of experience working with Governance, Risk and Compliance (GRC) and Information Technology for clients in the financial, healthcare, IT services, government and retail industries. His experience includes IT infrastructure, e-mail systems, backup and networking. He has assisted with numerous audit engagements, developing and assessing IT risk over financial reporting, IT security, IT Governance, disaster recovery and information systems management. He is an expert in the use of computerized audit techniques to access and analyze data to maximize audit efficiency. He has implemented numerous Continuous Audit (CA) and Continuous Control Monitoring (CCM) projects. In addition, Mr. Antigua works with Marcum's teams to bridge the gap between financial audits and internal controls and information systems auditing. He executes GRC and GRC assurance engagements according to various frameworks, regulations and standards including SOX, HIPPA, NIST, SSAE 18, COBIT 5 and GDPR. He identifies process and control weaknesses, analyzes complex systems and works with clients to streamline operations within time and resource constraints. He also conducts IT Risk Assessments and IT Control Assessments in numerous vertical markets. Professional & Civic Affiliations Information Systems Auditing and Control Association (ISACA) Institute of Internal Auditors (IIA) Toastmasters International FAIR Institute International Association of Privacy Professionals (IAPP) Designations & Accreditations Certified Information Systems Auditor (CISA) Certified Information Security Manager (CISM) Certified Data Privacy Solutions Engineer (CDPSE) Certified in Data Analytics (ACDA) Certificate in IT Governance and Managent with COBIT Cerfified Microsoft Azure Fundamentals Certificate in eGovernment Articles, Seminars & Presentations Controls to Mitigate Top IT Risks amidst COVID-19, 2020 Privacy and GDPR: who has my data, 2018 GDPR: from doubt to hope, 2018 Internal Auditor in the Digital Era, 2018 An Integral Approach to Cybersecurity, 2017 Privacy in Perspective: PII and PHI management, 2017 Business Intelligence for IT Risk Monitoring, 2017 Cybersecurity SEC requirements for Public Companies, 2016 Risk Management, an Integral Approach, 2015 Governance, Risk and Compliance (GRC) in practice, 2014 Internal Control Framework based on COSO 2013, 2014 Closing the gaps between COBIT 4.1 and COBIT 5, 2014 IT Audit for CISA exam preparation, 2014 CPE Hours (three years) Information Technology related for a Certified Information Systems Auditor, including accounting, auditing, COSO, Technical and Behavioral Total 158 PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 23 ELAD LERNER, CPA SUPERVISOR ASSURANCE SERVICES 305.995.9634 elad.lerner@marcumllp.comalp.com PRACTICE FOCUS Government Audits Nonprofit Financial Audits Federal Single Audits Program-Specific Compliance Audits INDUSTRY FOCUS Governmental Entities Nonprofit Organizations Healthcare Organizations 401k Plans Public Commercial Companies EDUCATION Bachelor’s Degree, Accounting, Florida International University Master’s Degree, Forensic Accounting & Business Valuation, Florida Atlantic University *Licensed by the State of Florida #AC45440 Elad Lerner is a senior in the Firm’s Assurance Division. He has approximately six years of experience providing accounting and auditing services for local governments, nonprofit organizations, and private businesses in a variety of industries, including construction and manufacturers. Mr. Lerner also provides advisory services pertaining to tracing of funds, reconstruction of financial business records, and financial data analytics. Mr. Lerner is involved in all phases of the audit process, from planning and initial risk assessment to ensuring compliance with all State and Federal laws, along with the preparation of financial statements. He is client service driven and is always willing to assist with auditing and financial reporting issues, including but not limited to, implementation of new accounting pronouncements. Mr. Lerner meets the following minimum qualifications: licensed by the State of Florida as a certified public accountant in good standing, five years of experience in governmental accounting and auditing, and three years of supervisory experience. It is anticipated that the audit supervisor will be on‐ site during the course of the engagement and actively involved in all aspects of the audit. Partial Listing of Clients: • City of Boca Raton • City of Deerfield Beach • City of Hollywood • City of Homestead • City of Pompano Beach • City of Sunrise • East Central Regional Wastewater Facilities Operation Board • Miami-Dade Water & Sewer Department • Town of Palm Beach • Village of Tequesta CPE Hours (three years) Government 64 Other (Accounting, Auditing, Technical and Behavioral) 42 Total 106 PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 24 GOVERNMENT PENSION PLAN EXPERIENCE (PARTIAL LIST) Below is a partial list of Florida government benefit pension plan engagements for which the Firm has provided auditing services. GOVERNMENT PENSION PLAN EXPERIENCE YEARS SERVED INVESTMENT ASSETS (APPROX.) Bal Harbor Village Police Pension Trust 14 $25 M City of Boca Raton Executive Employees Retirement Plan 11 $48 M City of Boca Raton General Employees’ Pension Plan 11 $191 M City of Boca Raton Police and Firefighters’ Retirement System 11 $400 M City of Florida City Police Pension Plan 22 $9 M City of Fort Lauderdale General Employees’ Retirement System 7 $690 M City of Fort Lauderdale Police and Firefighters’ Retirement System 12 $964 M City of Hallandale Beach General Employees Retirement System 5 $64 M City of Hialeah General Employees Retirement System 5 $685 M City of Hollywood Florida Employees’ Retirement Fund 4 $332 M City of Miami Firefighters’ and Police Officers’ Retirement Trust 3 $1.5 Billion City of Miami Springs General Employees’ Retirement System 8 $22 M City of Miami Springs Police and Firefighters’ Retirement System 8 $32 M City of North Miami Special Police Officers’ Retirement Pension Fund 2 $3.5 M City of Palm Beach Garden General Employees Pension 7 $4 M City of Pompano Beach Police and Firefighters’ Retirement System 8 $258 M City of Tampa Police and Fire Pension Fund 1 $2.4 Billion Clair T. Singerman Retirement Plan (City of North Miami) 15 $130 M Miami Beach Employees’ Retirement Plan 6 $660 M Miami Police Relief and Pension Fund 2 $70 M North Miami Police Pension 15 $79 M Town of Bay Harbor Islands Employees’ Retirement System 15 $21 M Town of Palm Beach Retirement System 7 $230 M Village of Key Biscayne Employee Retirement System 25 $43 M Village of Tequesta Employees Retirement System 11 $23 M PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 25 STAFF DEVELOPMENT Having the best-qualified professionals requires a continuous investment in training and resources that improve and maintain competencies. As the guidelines and compliance requirements of our industry change frequently, we are proactive in keeping up with the changes in the profession and providing the necessary training for our staff. Technical training for all of our staff covers accounting, auditing, federal regulations, tax, employee benefits and computer systems. In addition to the standard technical training required to maintain our certifications, we include training on mentoring, interviewing, time management, coaching and more. Our training initiatives help our professionals maintain the highest level of technical and business competencies that our clients have come to expect. Our team encourages and requires continuing education and training at all levels, and this steadfast commitment to our own personal and professional growth benefits our clients and us. Every year, Marcum provides a minimum of 40 hours of continuing professional education (CPE) in-house to all professional staff. These seminars include sessions in government accounting, auditing and financial reporting, including Yellow book, single audit, IT audits and information systems and other accounting and auditing issues. In addition to the in-house training, our partners and professional staff attend various outside seminars/conferences. Marcum affirms all members of the audit team meet or exceed the CPE requirements mandated by professional auditing standards (including Government Auditing Standards) and all CPAs assigned meet or exceed the CPE and ethics training mandated by the Florida State Board Accountancy (including Florida Statutes, Chapter 11.45, information technology training). RESOURCES FOR OUR GOVERNMENT CLIENTS Marcum is also committed to providing professional development programs to the entire South Florida community involved in the government sector. For the past 26 years, Marcum has presented an annual Government Symposium, an 8-hour accounting and auditing seminar that focuses on current developments in government affairs, including accounting, legal and operational topics. We encourage our clients and non-clients alike, to attend this technical (CPE) Symposium at no cost. During 2021, our 27th Annual Government Symposium was hosted virtually, with the goal of returning to in person in 2022. Additionally, Marcum provides more than 40 virtual courses that can be attended live or at a later date. All Marcum clients have access to this database at no cost. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 26 GFOA CERTIFICATE OF ACHIEVEMENT PROGRAM Marcum assists clients who participate in the GFOA Certificate of Achievement for Excellence in Financial Reporting Program. This program is recognized as the highest award in government financial reporting. The Certificate of Achievement has been awarded on all of the financial statements for participating clients, including first time submissions. Several members of the Marcum team are special reviewers for the GFOA Certificate of Achievement Program, including Branden A. Lopez who has been a special reviewer for the Certificate Program since 2018 and Moises D. Ariza who has been a Certificate Program reviewer since 2014. Marcum serves more than 250 government clients at a national level and over 40 government clients in Florida. One hundred (100) percent of our clients that apply for the GFOA Certificate of Achievement for Excellence in Financial Reporting have received the certificate during our tenure as auditors. LONGEVITY OF STAFF/TURNOVER RATE Since all of Marcum’s government audit staff are qualified to perform financial and single audits of local governments and other government agencies, the Firm can assure the quality of staff over the term of the engagement. The turnover of managerial personnel in Marcum’s government team is less than 5% based on the past five (5) years. SUBCONTRACTORS Marcum will not be using subcontractors for this solicitation. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 27 SECTION 4: APPROACH/METHODOLOGY AUDIT APPROACH AND PHILOSOPHY Through the audit, we strive to understand your vision, entity operations, financial performance, accounting systems, and internal controls. While this process ultimately leads to an audit opinion on your financial statements, our goal is to provide value beyond this assurance. Our professionals will complement the City’s team with the right blend of technical, practical, and personal insight to help you successfully deliver on all of your initiatives. AUDIT METHODOLOGY The audit will be conducted in four phases, as shown below. These phases are discussed in more detail on the following pages. Obtain an Understanding of the City’s Operations Evaluate Internal Controls Information Technology Review Develop Audit Plan and Strategies; Risk Assessment Prepare Audit Programs Perform Test of Internal Controls (as applicable) Perform Tests of Account Balances Test Compliance with Laws, Rules, Regulators, and Contracts Documentation Reviewed by Partner and Quality Control Department Auditor’s Conclusions Documented Preliminary Discussion with Management of Audit Findings Prepare Auditor’s Reports Review the Draft Financial Statements Discuss Final Results with Management in Exit Conference Presentation to the City Commission PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 28 PHASE I: STRATEGIC PLANNING PROCEDURES FOR INTERNAL CONTROL A thorough understanding of the City and its operating environment is essential for developing an efficient, cost-effective audit plan. During this phase, the engagement partner and key supervisory personnel will meet with the appropriate personnel to ensure we have an understanding of your operations. You will also have the opportunity to express your expectations regarding the services that we will provide. This effort will be coordinated so that there will be minimal disruption to your staff. During this phase, we will perform the following activities: Review the current regulatory and statutory compliance requirements within which the City operates. This will include a review of applicable state regulations; ordinances, contracts, and other agreements; meeting minutes of the City Commission, as applicable; Review major sources of information such as budgets, organization charts, procedures manuals, financial systems and management information systems; Determine the most practical and effective way to apply computer-aided audit tools to convert and analyze data and generate reports; Performance of fraud inquiries and retrospective review; Determination of materiality levels; Regarding controls that are relevant to the audit, Marcum will evaluate the design of the controls and determine whether they have been properly designed and implemented; Reevaluation of City provided major fund determination worksheet; Documentation of current year activity expectations and performance of preliminary analytical procedures; Review internal control systems, including determining an audit risk assessment; Consider the methods used to process accounting information that influence the design of the internal control system. This includes understanding the design of relevant policies, procedures, and records and whether they have been placed in operation; Design audit programs to ensure that they incorporate financial statement assertions, specific audit objectives and appropriate audit procedures to achieve the specified objectives; Identify and resolve accounting, auditing and reporting matters; and Prepare detailed audit plans, including a list of schedules to be prepared by the City’s personnel. RISK-BASED AUDIT TECHNOLOGIES The Firm employs a risk-based approach early in the audit process. This approach considers how the overall risk identified in the general risk analysis affects specific account balances. We consider, in part: Relative significance of the account to the financial statements as a whole; Volume of transactions; Susceptibility of the account to fraud; PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 29 Accounts that have traditionally required significant adjustments; and Account with complex calculations, judgement, and accounting issues that have a high assessed level of inherent risk. Based on these considerations, we assess the inherent risk and control risk to determine the overall audit risk. Once this assessment is completed, the audit procedures to be used are determined. By redirecting our efforts through a risk-based approach, audits are significantly enhanced, which provide greater value to our clients. We will use several approaches to conduct the audit engagement. These approaches include traditional audit techniques and strategies, and an evaluation of the systems utilized by the City. ENTERPRISE FUNDS INCLUDING UTILITIES Marcum has a specialization in auditing business-type activities including: Suggesed basic procedures for enterprise funds, subjet to change based on the auditors risk assessment: Compare the balance in receivables with the balance for prior years or other expectations. Compute the ratio of the receivables balance to related revenue for the current period and compare with the ratios for prior years or other expectations. Compute the number of days revenue in accounts receivable (net accounts receivable divided by average net revenue per day) and compare to the ratio for prior years or other expectations. Select a sample of customer billing statements and perform the following procedures: o Compare rates used to the authorized rate schedule, and consider the reasonableness of usage. Water Sewer Stormwater Solid Waste Toll Bridges Electric Parking Gas Golf Courses Marinas PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 30 For usage that appears unreasonable or unusual (significantly higher or lower than expected) compare usage to usage records (for example, the meter book). o Recompute the billing. Select a sample of customers from usage records (for example, meter books) and trace to billing statements. Trace selected months’ cash collections to deposit slips and bank statements. Obtain and review an analysis of the allowance account. Consider the reasonableness of write- offs and recoveries. SINGLE AUDITS Under the Federal and Florida Single Audit Acts and the Uniform Guidance, Marcum has additional testing and reporting responsibilities for compliance, as well as internal control over compliance, beyond a financial statement audit performed in accordance with GAAS and Government Auditing Standards. As required by the Uniform Guidance and Florida statutes, Marcum will plan underlying testing of internal control over compliance and performs such testing to support a low assessed level of control risk of noncompliance for major programs. Marcum also has extensive experience in auditing federal programs from FEMA as a result of hurricanes. We will design and perform audit procedures, including tests of details (which may include tests of transactions) to obtain sufficient appropriate audit evidence about the City’s compliance with each of the direct and material compliance requirements in response to the assessed risks of material noncompliance. In general, Single Audit procedures may include: Identify the City’s major programs to be tested and reported on for compliance. Identify the compliance requirements applicable to each major program. Determine which of the compliance requirements identified could have a direct and material effect on each major program. Consider relevant portions of the City’s internal control over compliance for each direct and material compliance requirement for each major program. Obtain sufficient appropriate audit evidence, which involves testing internal control over compliance and compliance with direct and material compliance requirements for each major program. Consider indications of fraud. Consider indications of abuse. Consider subsequent events. Form an opinion about whether the City complied with the direct and material compliance requirements. Perform follow-up procedures on previously identified findings. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 31 SPECIFIC FRAUD INVESTIGATIVE TECHNIQUES Professional Auditing Standards imposes on auditors the additional responsibility to “plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements due to fraud.” By redirecting our efforts through a risk-based approach and additional fraud inquiry techniques, audits are significantly enhanced. PHASE II: EXECUTION OF AUDIT PLAN The audit team will complete a major portion of transaction testing and audit requirements during this phase. The procedures performed during this period will enable us to identify any matters that may impact the completion of our audit work or require the attention of management. Tasks to be performed in Phase II include, but are not limited to: Apply analytical procedures to assist in planning the nature, timing and extent of auditing procedures used to obtain evidential matter for specific account balances or transaction classes. Analytical procedures are utilized in almost every audit area tested. Perform substantive account balance and transaction tests. Samples will be drawn from major transaction systems, including cash disbursements, cash receipts, accounts payable, and payroll. The size of the samples will be determined after the review of the internal control system. PROPOSED SEGMENTATION BY LEVEL OF STAFF Note: In the first year of an engagement, additional hours are required to transition the audit to a new audit Firm. Our extensive experience with transitioning new clients has led to a streamlined process that is respectful of your time and resources. As a result, the City will receive the benefit of a new team with significant government experience as well as a fresh look at your systems, with minimal disruption. The above schedule does not include the first year “transition hours” which we intend to absorb. PHASE Audit Partner & Quality Control Director Manager & IT Risk Audit Director Audit SUPERVISO R Staff TOTAL Phase 1: Strategic Planning 15 20 40 40 115 Phase 2: Execution of Audit Plan 10 20 40 70 140 Phase 3: Evaluation of Audit Results 10 30 40 15 95 Phase 4: Reporting 15 10 15 5 45 Total Hours 50 80 135 130 395 PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 32 Note: The Uniform Guidance states that the auditor must use a risk-based approach to determine which federal programs are major programs. This determination will affect the scope of the Uniform Guidance compliance audit and the compliance requirements to be tested. The schedule of expenditures of federal awards, prepared by the City, is the basis of the auditor's identification of type A and type B programs and documentation of our risk-based approach. Upon determination, audit hours for testing a major program significantly range due to program size, program compliance requirements, weaknesses in internal control over federal programs , if any, prior audit findings, program longevity, program clusters, program subrecepients, etc. As such, related Singe Audit hours are not included in the above schedule. SAMPLE SIZE AND EXTENT OF STATISTICAL SAMPLING There are three types of tests that involve audit sampling (statistical and non-statistical sampling) which Marcum will use: Account Balance Tests. Substantive tests of account balances are performed on year- end balances. Certain accounts justify a 100 percent examination, such as confirming an investment and bank balance, which does not involve sampling at all. Transaction and Control Tests. Substantive transaction and control tests are often combined to use one sample to achieve more than one audit objective. We often test the controls to verify that the transactions were properly authorized in accordance with the City’s procedures. Compliance Tests. Compliance tests with laws and regulations are included with the tests of transactions and controls. Additional samples are sometimes necessary to test specific laws and regulations. Sample sizes for compliance testing are determined based on the number of transactions and the significance of the requirement. The audit team will report on a weekly basis to management the status of any potential adjustments so that management may have adequate time to investigate, gather information and respond, if necessary. We use a risk-based assessment of the opportunities for a material financial statement error or irregularity to occur and remain undetected. SECURE DATA REQUEST AND COLLECTION PROCEDURE An “Auditor Request List” will be prepared and delivered to you prior to, or shortly after, the close of the Planning meeting. The requested schedules, report, agreements, etc. requested in the “Auditor Request List” are collected by Marcum via a secure workflow tool. Our information technology department has established a secure workflow data management tool (“INFLO”) on our network for each of our clients. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 33 We use the INFLO site as a virtual common workspace that is keyed to our data request lists and electronic audit system. We have been using the software for the past five years with much success. Any data we request from you can be easily uploaded to the secure site and seamlessly downloaded by our client service team directly into our electronic work programs. This web-based tool minimizes the use of e-mails to transmit data, enhances the security of your information and eliminates duplicate requests for data. Our software tools and approach to our work reduce demands on client resources and saves our clients both time and money. In addition, INFLO provides real-time audit update information which is available at any time to the City, such as the progress current of the audit and the status of the audit requests specifically tailored to the engagement. All this information is available through the INFLO dashboard. ANALYTICAL PROCEDURES Tasks to be performed in Phase II of Marcum LLP’s Audit Process include applying analytical procedures to assist in planning the nature, timing and extent of auditing procedures used to obtain evidential matter for specific account balances or transaction classes. Analytical procedures are utilized in almost every audit area tested. Analytical procedures will be performed at both the government-wide and fund level financial statement and will include the following, where applicable: Comparison of original budget (revenue sources and appropriations) to actual amounts. Comparison of major revenue, expenses, and expenditure amounts to: o Preliminary expectations based on budgets and forecasts. o Prior year’s amounts. Consideration, to the extent applicable, of the certain key financial relationships in relation to preliminary expectations to determine if there are unusual or unexpected balances or unexpected relationships. Analytical procedures will be used in substantive testing for certain revenue and expenditure activities, when deemed efficient. LAWS AND REGULATIONS AND COMPLIANCE TESTS Compliance tests with laws and regulations are included with the tests of transactions and controls. Additional samples are sometimes necessary to test specific laws and regulations. Sample sizes for compliance testing are determined based on the number of transactions and the significance of the requirement. Testing will be generated to ensure compliance with rules, laws, and regulations; not limited to Rules of the Auditor General, Florida Statutes, Federal OMB Uniform Guidance Guidelines and the Florida Single Audit Act. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 34 COMMUNICATION AND PLANNING Our firm believes that open and honest communication is a hallmark of strong client service, and without open and honest dialogue, the auditor/client relationship cannot properly function. During the planning phase of the audit, Marcum will schedule a “Planning Kick- Off Meeting” with your organization’s management. This meeting allows our team to meet in person with management and revisit audit time frames and due dates, as well as determine the level of assistance we need from your staff and management team. INFORMATION TECHNOLOGY AUDIT TECHNIQUES In accordance with Professional Auditing Standards, we are required to gain an understanding of the procedures, both automated and manual, by which transactions are initiated, recorded, processed and reported, from their occurrence to their inclusion in the financial statements. During the planning stage of our audit, we evaluate the effect information technology (IT) will have in performing our audit procedures. This evaluation includes obtaining an understanding (generally through observations and inquiries of IT personnel) of internal controls and identifying those controls that are automated. Our approach includes review of IT general controls as follows: Security—Physical and Access Controls Change Management for Systems and Configurations Application/System Development and Customization IT Risk Management Data Backup and Recovery/Business Continuity Plans Electronic Banking Wire and ACH Security Segregation of Duties within Systems and IT function When key internal controls are automated, we use our IT specialist to perform a detailed review of those automated controls. The assigned IT Audit Director, José Antigua, will then communicate to the audit engagement team as to whether such controls are working as prescribed by management. With this information, the audit engagement team determines the extent of their audit procedures. In certain situations where there is significant accounting data processed electronically, we use several state-of-the-art software programs (IDEA and Team Mate Analysis) to extract and summarize computerized financial data files. These programs provides an efficient way for us to extract and test computerized accounting information, enabling us to audit through the computer, rather than around the computer. Some of the uses of this program are: Retrieving aged receivables information Extracting credit balances in accounts receivable reports PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 35 Extracting pre-determined sample items from reports for testing Merging files for the purposes of extracting information that meets predetermined criteria Sorting information and footing report Searching for anomalies Searching for related party transactions Searching disbursements for selected vendors Journal Entries Testing PHASE III: EVALUATION OF AUDIT RESULTS This phase includes a review of all audit documentation by the partners to ensure that testing and documentation support the conclusions reached. This phase also includes preliminary discussions with management of the audit findings. Marcum will accumulate misstatements identified during the audit, other than those that are clearly trivial and will determine whether the audit plan and strategy per audit area needs to be revised. PHASE IV: REPORTING In this phase of the audit, the engagement team will complete the tasks related to the closing of year-end balances and financial reporting. This will include final testing in areas including compliance, balance sheet accounts, revenues and expenditures. Upon receipt of the draft Annual Comprehensive Financial Report (ACFR), we will turn around the draft with our comments within seven to ten days. Final reports will be issued by the agreed upon date. The audit partner and/or audit manager will be available to present the audit report in person. EXIT CONFERENCE Upon completion of audit work, Marcum will hold a closing or exit conference with senior members of the City’s finance department. The exit conference assists Marcum in obtaining the views of responsible officials concerning the findings, conclusions, and recommendations, as well as planned corrective action, as required by Government Auditing Standards and OMB Uniform Guidance. This conference also provides the City with an advance opportunity to discuss whether planned corrective actions adequately address the auditor's recommendations and to initiate corrective action without waiting for a final audit report. Marcum will also consider having preliminary exit meetings with directors, department heads, and other operating personnel who have direct responsibility for financial management systems and/or the administration of federal awards. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 36 MANAGEMENT LETTER The Firm will prepare a management letter for the City to identify systemic deficiencies observed. The letter also may offer recommendations for changes in accounting and other procedures in order to improve operations of the City. As each potential management letter point is identified in the audit process, the engagement team will document the condition, our recommendation, and the benefits of the recommended action. All potential comments will be reviewed with key staff members before issuance. The Firm’s policy is to prepare this report as a vehicle for suggesting improvements to enhance efficiency, management effectiveness, and the degree of internal control. Findings (material weaknesses and significant deficiencies and material instances of noncompliance) are required to be reported in writing and will be included in the schedule of findings and questions costs. OUR COMMITMENT We will act as a valued advisor to recommend meaningful operation solutions, leverage our Firm resources to your benefit, and make ourselves readily available to the City. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 37 TIME SCHEDULE Marcum is committed to completing the audit procedure within the below timeframe or within any other schedule requested by the City. Marcum LLP is available to commence the audit as soon as notification of award has been issued. Each of the following will be completed as stipulated by the RFP: MUNICIPAL SUPPORT Marcum will assist with drafting the annual comprehensive financial report. In order to meet the GFOA program requirements, City staff is to provide Marcum the following; Introductory Section, Letter of Transmittal, Management’s Discussion and Analysis, and Statistical Section. TASK ANNUAL TIMING Interim work/ Planning Phase August 31 or earlier Completion of detailed audit plan and a list of all schedules to be prepared by the City for Fieldwork August 31 Commencement of fieldwork November 15th or earlier Completion of Fieldwork December 31st Draft reports and recommendations to management available for Finance Director review January 15th Be available to present Annual Comprehensive Financial Report at Public Meeting January 31 PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 38 SECTION 5: REFERENCES Reference letters are provided in Appendix E of the proposal. NO PRIOR ENGAGEMENTS WITH THE CITY Marcum LLP has no prior engagements with the City of Sunny Isles Beach, Florida in the past five (5) years. Marcum affirms that there have been no reported conflict of interests in relation to this solicitation. Performing the services described in the RFP will not create any potential conflict of interest with the interest of existing clients. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 39 SECTION 6: COST OF SERVICES Our Price Proposal is provided in a separate sealed envelope. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 40 SECTION 7: CONTRACT FORMS All required forms are provided in Appendix C of the proposal. PROPOSAL FOR CITY OF SUNNY ISLES BEACH, FLORIDA RFP NO. 22-02-01 41 SECTION 8: EXCEPTIONS The firm has no exceptions to the terms and conditions mentioned in the RFP. APPENDIX A PEER REVIEW REPORTS Your Success is Our Focus 319 McClanahan Street, S.W. • P.O. Box 12388 • Roanoke, VA 24025-2388 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com Report on the Firm’s System of Quality Control To the Partners of Marcum LLP and the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Marcum, LLP (the “firm”),applicable to engagements not subject to PCAOB permanent inspection, in effect for the year ended April 30, 2020.Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants (Standards). A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System Review as described in the Standards may be found at www.aicpa.org/prsummary. The summary also includes an explanation of how engagements identified as not performed or reported in conformity with applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review rating. Firm’s Responsibility The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. The firm is also responsible for evaluating actions to promptly remediate engagements deemed as not performed or reported in conformity with professional standards, when appropriate, and for remediating weaknesses in its system of quality control, if any. Peer Reviewer's Responsibility Our responsibility is to express an opinion on the design of the system of quality control and the firm’s compliance therewith based on our review. Required Selections and Considerations Engagements selected for review included engagements performed under Government Auditing Standards, including compliance audits under the Single Audit Act; audits of employee benefit plans, audits performed under FDICIA,audits of broker-dealers,and examinations of service organizations [SOC 1 and 2 engagements]. As part of our peer review, we considered reviews by regulatory entities as communicated by the firm, if applicable, in determining the nature and extent of our procedures. Your Success is Our Focus 319 McClanahan Street, S.W. • P.O. Box 12388 • Roanoke, VA 24025-2388 • 540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com Opinion In our opinion, the system of quality control for the accounting and auditing practice of Marcum, LLP,applicable to engagements not subject to PCAOB permanent inspection, in effect for the year ended April 30, 2020, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies)or fail. Marcum, LLP has received a peer review rating of pass. CERTIFIED PUBLIC ACCOUNTANTS Roanoke, Virginia October 16, 2020 APPENDIX B LICENSES Julie I. Brown, SecretaryRon DeSantis, GovernorSTATE OF FLORIDADEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATIONBOARD OF ACCOUNTANCYTHE CERTIFIED PUBLIC ACCOUNTANT HEREIN IS LICENSED UNDER THEPROVISIONS OF CHAPTER 473, FLORIDA STATUTESDo not alter this document in any form.ARIZA, MOISES DAVIDLICENSE NUMBER: AC45440EXPIRATION DATE: DECEMBER 31, 2023This is your license. It is unlawful for anyone other than the licensee to use this document.Always verify licenses online at MyFloridaLicense.com Halsey Beshears, SecretaryRon DeSantis, GovernorSTATE OF FLORIDADEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATIONBOARD OF ACCOUNTANCYTHE CERTIFIED PUBLIC ACCOUNTANT HEREIN IS LICENSED UNDER THEPROVISIONS OF CHAPTER 473, FLORIDA STATUTESDo not alter this document in any form.This is your license. It is unlawful for anyone other than the licensee to use this document.SHERMAN, BEILALICENSE NUMBER: AC0032647EXPIRATION DATE: DECEMBER 31, 2022Always verify licenses online at MyFloridaLicense.com CPAVerify Individual Report Results NAME: NICHOLAS LINO MARTIN STATE OF LICENSE: FL LAST UPDATED: 2022-03-05 Business Mail Address:MARTIN, NICHOLAS LINO NORTH BAY VILLAGE, FL, US NORTH BAY VILLAGE, FL, US License/Permit/Certificate Number:AC50617 Registration Number: License/Permit/Certificate Status:CURRENT, ACTIVE License/Certificate Status Details:Holds a valid license to practice public accounting. License Type:CERTIFIED PUBLIC ACCOUNTANT License Type Details: Shall be deemed and construed to mean a person, who holds an active, inactive, delinquent, or temporary license issued under Chapter 473, F.S., or who is practicing public accounting in this state pursuant to the practice privilege granted in Section 473.3141, F.S. Basis for License:EXAM Basis for License Details:Initial license applications are only available for applicants that have passed all sections of the Uniform CPA Examination in Florida. Issue Date:2016-11-08 Expiration Date:2023-12-31 Enforcement, Non-Compliance or Disciplinary Actions:None Reported To This Site By The Board Other Information: Contact the Board for official verification of information. State Board Contact Information:FLORIDA DIVISION OF CERTIFIED PUBLIC ACCOUNTING 240 NW 76TH DRIVE, SUITE A GAINESVILLE, FL 32607 Phone: (850) 487-1395 Website: http://www.myfloridalicense.com/DBPR/certified-public-accounting/ Licensee Lookup: https://www.myfloridalicense.com/wl11.asp?mode=0&SID= Details of Enforcement, Non-Compliance or Disciplinary Actions: If "Contact State Board For Details" is displayed then the State Board has reported some type of enforcement, non-compliance or disciplinary action to this site and the State Board should be contacted for full details about the action reported. 1. If "None Reported To This Site By The Board" is displayed then the State Board provides enforcement, non-compliance and disciplinary action data to this site and none was indicated for this record. 2. If "State Does Not Provide This Type of Data At This Site" is displayed then CPAverify is not currently receiving enforcement, non-compliance or disciplinary action data for licensees in this state. Some states are limited to sharing this type of data with third party websites due to privacy laws or policies, but most State Boards offer this information on their official State Board websites. 3. Contact the State Board for official verification of all enforcement, non-compliance and disciplinary activity.4. The results shown here include all data made available by participating states. Additional data about the individual or firm may exist and is not shown here for other states that are not yet participating in the CPAverify website. Please refer to the Participating States tab for more information about which states are currently sharing their licensing data for use with this website and for clarification about which states these results do not include. If the Board of interest is not participating, you may refer to the "Contact Boards" tab where a link to every Boards' website and therefore individual license lookup tool is available. 03/06/22 04:52:14 1 CPAVerify Individual Report Results NAME: ELAD LERNER STATE OF LICENSE: FL LAST UPDATED: 2022-03-05 Business Mail Address:LERNER, ELAD PALMETTO BAY, FL, US PALMETTO BAY, FL, US License/Permit/Certificate Number:AC54290 Registration Number: License/Permit/Certificate Status:CURRENT, ACTIVE License/Certificate Status Details:Holds a valid license to practice public accounting. License Type:CERTIFIED PUBLIC ACCOUNTANT License Type Details: Shall be deemed and construed to mean a person, who holds an active, inactive, delinquent, or temporary license issued under Chapter 473, F.S., or who is practicing public accounting in this state pursuant to the practice privilege granted in Section 473.3141, F.S. Basis for License:EXAM Basis for License Details:Initial license applications are only available for applicants that have passed all sections of the Uniform CPA Examination in Florida. Issue Date:2019-06-28 Expiration Date:2023-12-31 Enforcement, Non-Compliance or Disciplinary Actions:None Reported To This Site By The Board Other Information: Contact the Board for official verification of information. State Board Contact Information:FLORIDA DIVISION OF CERTIFIED PUBLIC ACCOUNTING 240 NW 76TH DRIVE, SUITE A GAINESVILLE, FL 32607 Phone: (850) 487-1395 Website: http://www.myfloridalicense.com/DBPR/certified-public-accounting/ Licensee Lookup: https://www.myfloridalicense.com/wl11.asp?mode=0&SID= Details of Enforcement, Non-Compliance or Disciplinary Actions: If "Contact State Board For Details" is displayed then the State Board has reported some type of enforcement, non-compliance or disciplinary action to this site and the State Board should be contacted for full details about the action reported. 1. If "None Reported To This Site By The Board" is displayed then the State Board provides enforcement, non-compliance and disciplinary action data to this site and none was indicated for this record. 2. If "State Does Not Provide This Type of Data At This Site" is displayed then CPAverify is not currently receiving enforcement, non-compliance or disciplinary action data for licensees in this state. Some states are limited to sharing this type of data with third party websites due to privacy laws or policies, but most State Boards offer this information on their official State Board websites. 3. Contact the State Board for official verification of all enforcement, non-compliance and disciplinary activity.4. The results shown here include all data made available by participating states. Additional data about the individual or firm may exist and is not shown here for other states that are not yet participating in the CPAverify website. Please refer to the Participating States tab for more information about which states are currently sharing their licensing data for use with this website and for clarification about which states these results do not include. If the Board of interest is not participating, you may refer to the "Contact Boards" tab where a link to every Boards' website and therefore individual license lookup tool is available. 03/06/22 04:51:03 1 APPENDIX C REQUIRED FORMS APPENDIX D INSURANCE REQUIREMENTS ANY PROPRIETOR/PARTNER/EXECUTIVEOFFICER/MEMBER EXCLUDED? INSR ADDL SUBRLTR INSD WVD PRODUCER CONTACTNAME: FAXPHONE(A/C, No):(A/C, No, Ext): E-MAILADDRESS: INSURER A : INSURED INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : POLICY NUMBER POLICY EFF POLICY EXPTYPE OF INSURANCE LIMITS(MM/DD/YYYY) (MM/DD/YYYY) AUTOMOBILE LIABILITY UMBRELLA LIAB EXCESS LIAB WORKERS COMPENSATIONAND EMPLOYERS' LIABILITY DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) AUTHORIZED REPRESENTATIVE EACH OCCURRENCE $ DAMAGE TO RENTEDCLAIMS-MADE OCCUR $PREMISES (Ea occurrence) MED EXP (Any one person) $ PERSONAL & ADV INJURY $ GEN'L AGGREGATE LIMIT APPLIES PER:GENERAL AGGREGATE $ PRO-POLICY LOC PRODUCTS - COMP/OP AGGJECT OTHER:$ COMBINED SINGLE LIMIT $(Ea accident) ANY AUTO BODILY INJURY (Per person) $ OWNED SCHEDULED BODILY INJURY (Per accident) $AUTOS ONLY AUTOS HIRED NON-OWNED PROPERTY DAMAGE $AUTOS ONLY AUTOS ONLY (Per accident) $ OCCUR EACH OCCURRENCE CLAIMS-MADE AGGREGATE $ DED RETENTION $ PER OTH-STATUTE ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE $ If yes, describe under E.L. DISEASE - POLICY LIMITDESCRIPTION OF OPERATIONS below INSURER(S) AFFORDING COVERAGE NAIC # COMMERCIAL GENERAL LIABILITY Y / N N / A (Mandatory in NH) SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: CERTIFICATE HOLDER CANCELLATION © 1988-2015 ACORD CORPORATION. All rights reserved.ACORD 25 (2016/03) CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) $ $ $ $ $ The ACORD name and logo are registered marks of ACORD 1/25/2022 License # BR-767175 (516) 677-4700 (516) 496-4040 20478 Marcum LLP 10 Melville Park Road Melville, NY 11747 20443 35289 20427 19038 A 1,000,000 7018085918 1/1/2022 1/1/2023 1,000,000 5,000 1,000,000 2,000,000 2,000,000 1,000,000B 7018085921 1/1/2022 1/1/2023 25,000,000C 7018085952 1/1/2022 1/1/2023 25,000,000 10,000 D 7018085935 1/1/2022 1/1/2023 1,000,000 1,000,000 1,000,000 E Cyber 107485725 8/9/2021 8/9/2022 5,000,000 Evidence of Coverage Evidence of Coverage MARCLLP-01 CCASELLA1 Hub International Northeast Limited100 Sunnyside BoulevardWoodbury, NY 11797 National Fire Insurance Company of Hartford Continental Casualty Company The Continental Insurance Company American Casualty Co of Reading PA Travelers Casualty and Surety Company X X X XX X X X 1988-2010 ACORD CORPORATION. All rights reserved. ACORD 25 (2010/05) The ACORD name and logo are registered marks of ACORD CERTIFICATE OF LIABILITY INSURANCE 10/15/2021 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE CONVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER Pace Professional Services, Ltd. 585 Stewart Avenue, Suite 600 Garden City, NY 11530 CONTACT NAME: PHONE (A/C, No, Ext): FAX (A/C, No): EMAIL ADDRESS: INSURER(S) AFFORDING COVERAGE NAIC # INSURER A : Swiss Re International SE INSURED Marcum LLP 10 Melville Park Road Melville, NY 11747 INSURER B: INSURER C : INSURER D : INSURER E : INSURER F : COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSUARNCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR LTR TYPE OF INSURANCE ADDL INSR SUBR WVD POLICY NUMBER POLICY EFF (mm/dd/yyyy) POLICY EXP (mm/dd/yyyy) LIMITS GENERAL LIABILITY EACH OCCURANCE $ COMMERCIAL GENERAL LIABILITY DAMAGE TO RENTED PREMISES (Ea occurrence) $ CLAIMS-MADE OCCUR MED EXP (Any one person) $ N/A PERSONAL & ADV INJURY $ GENERAL AGGREGATE $ GEN’L AGGREGATE LIMIT APPLIES PER: PRODUCTS – COMP/OP AGG $ POLICY PROJECT LOC $ AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT (Ea accident) $ ANY AUTO BODILY INJURY (Per person) $ ALL OWNED AUTOS SCHEDULED BODILY INJURY (Per accident) $ HIRED AUTOS NON-OWNED AUTOS N/A PROPERTY DAMAGE (Per accident) $ $ UMBRELLA LIAB OCCUR EACH OCCURANCE $ EXCESS LIAB CLAIM-MADE AGGREGATE $ DED RETENTION $ EACH OCCURANCE $ WORKERS COMPENSATION AND EMPLOYERS’ LIABILITY N/A N/A WC STATU- TORY LIMITS OTHER $ ANY PROPERIETOR/PARTNER/ EXECUTIVE OFFICER/MEMBER EXLUDED? (Mandatory in NH) If yes, describe under DESCRIPTION OF OPERATIONS below Y/N E.L. EACH ACCIDENT $ E.L. DISEASE – EA EMPLOYEE $ E.L. DISEASE – POLICY LIMIT $ A Accountants Professional Liability PSACO2100473 10/01/2021 10/01/2022 $10,000,000/$10,000,000 DESCRIPTION OF OPERATIONS / LOCATIONS/ VEHICLES (Attach ACORD 101, Additional Remarks Schedule, if more space is required) CERTIFICATE HOLDER CANCELLATION Marcum LLP 10 Melville Park Road Melville, NY 11747 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Date (MM/DD/YYYY) APPENDIX E REFERENCE LETTERS 9705 East Hibiscus Street, Palmetto Bay, FL 33157 Tel: (305) 259-1234 www.palmettobay-fl.gov VILLAGE OF PALMETTO BAY July 20, 2021 To Whom It May Concern: This is our 1st year utilizing the services of Marcum LLP and we are extremely pleased and satisfied with the services that they have provided to our Village. The audit team was very knowledgeable, professional, and very responsive to the Villages needs. The audit was conducted in a timely, orderly, and systematic manner, encompassing all of the requirements of Government Auditing Standards and the Uniform Guidance. Given that this was the 1st year of the audit contract, we were very pleased with the minimal disruption to our day to day operations in the accounting department. Their knowledge and commitment to the government sector made the transition to a new audit firm seamless. In our scenario, the Village was subject to a Federal Single Audit in accordance Uniform Guidance, specifically due to Disaster Relief Funding from the Federal Emergency Management Agency (FEMA), in which the audit team was able to provide proper guidance with respect to the unique reporting requirements set forth by FEMA, which is not reoccurring in nature to the Village. We highly recommend the firm of Marcum LLP to any organization requiring auditing and related consulting services, as we are looking forward to our continued partnership with them for many years to come. Please do not hesitate to contact my office if there are any questions regarding this letter of recommendation. Respectfully, Desmond Chin Finance Director VlLLAGE OF KEY BJSCAYNE November 12, 2021 To Whom It May Concern: It is my great pleasure that I provide this letter of recommendation for the audit services provided by Marcum LLP. We have been utilizing the services of Marcum LLP for several years now and I, as the Chief Financial Officer, had the pleasure of working with Marcum for the past 3 years. Our team is extremely pleased and satisfied with the services that they have provided to our Village . Marcum is not only our auditor, but we rely on their expertise throughout the year on an as needed basis. They are always available and willing to answer our request and phone calls. Most recently, Marcum provide us audit services related to our annual financial audit, which includes auditing of the Village of Key Biscayne Police Officers and Firefighters Retirement Plan. Additionally, we were subject to both the Federal single Audit Act (Uniform Guidance) and the Florida Single Audit. Throughout the process, it was a pleasure working with Marcum. The firm has always been a dependable resource in providing timely information and direction. We highly recommend the firm of Marcum LLP to any organization requiring auditing and related consulting services. Please do not hesitate to contact my office if there are any questions regarding this letter of recommendation. Respectfully, Benjamin L. Nussbaum Chief Financial Officer 88 West McIntyre Street • Key Biscayne, Florida 33149 • (305) 365-5511 • www.keybiscayne.fl.gov MISSION STi\TF.MF.NT: "TO PROVIDE i\ Si\FE. ()111\1.ITY CO:\,IMlJNITY ENVIRON MF.NT FOR i\1.1. ISl.i\NDF.RS TIIROllCH I RF.Sl'ONSIBI .E CiOVFRNMENT." 1 July 25, 2021 Dear Sir/Madam: It is with great satisfaction that I write this letter of recommendation for Marcum LLP. Marcum LLP has been providing auditing services for the City of Deerfield Beach for the past 6 years. We have found them to be very professional and responsive. They are very prepared for the audit with highly qualified staff who worked closely with us to pre-plan the audit and ensure a smooth process. Our team in particular was composed of Michael Futterman, Moises Ariza and Branden Lopez. In particular, Marcum LLP assisted us in the implementation of GASB Statement No.68 – Accounting and Financial Reporting for Pensions, GASB Statement No. 72 – Fair Value Measurement and Application and GASB Statement No.75 – Accounting and Financial Reporting for OPEB. We are thankful for their assistance and guidance, which result in a smooth implementation process. In addition, our City has been subject to Single Audits each year which have included Federal and State Single Audits that are performed in accordance with Uniform Guidance and the Florida Single Audit Act. Our City has also been required to issue a CRA stand-alone financial statement in accordance with Florida Statutes. From our experience, I can express that Marcum LLP has a high level of expertise in all of these specified areas. I strongly recommend other local governments such as yours to work with Marcum LLP. They have shown a great understanding of our City’s needs; they have cooperated extensively with our staff and they have consistently demonstrated high professional standards, work ethic, skills and knowledge and have met all of the timelines established by our City. Sincerely, Stephanie Tinsley Chief Financial Officer City of Deerfield Beach 954.420.5571 stinsley@deerfield-beach.com CITY OF PALM BEACH GARDENS 10500 N. Military Trail Palm Beach Gardens, FL 33410-4698 www.pbgfl.com July 23, 2021 To Whom It May Concern: It is our pleasure to provide this letter of recommendation for the services provided by Marcum LLP who have served as our auditors since 2014. We are extremely pleased with the services Marcum LLP has provided our organization. The work performed by the partner to the staff level is to be commended. The audit team is always courteous, professional and very responsive. All audits were conducted in a timely, orderly, and systematic manner, encompassing all of the audit requirements of the Government Auditing Standards and reporting requirements of the Governmental Accounting Standards Board (GASB). The firm’s services have always been performed to the highest degree of professionalism. Their staff are always willing to provide accounting guidance and suggestions to improve systems and methods of operation. Most importantly, Marcum LLP is always available to us throughout the year for questions, not only during the audit. During the 2020 audit, the City was subject to a Federal Single Audit for the first time in several years. Marcum was extremely helpful and knowledgeable of the process and assisted with the preparation of the schedule of financial assistance. Marcum is always prepared for the audit with highly qualified staff who worked closely with us from pre- planning the audit to financial statement issuance. The team is thorough and follow through with any questions or requests. In addition, they were very helpful in providing a lot of guidance ensuring a smooth auditing process. We highly recommend the firm of Marcum LLP to any organization requiring auditing and related consulting services. Please do not hesitate to contact my office if there are any questions regarding this letter of recommendation. Sincerely, Sean O’Brien, CPA Deputy Finance Administrator Andrew Jean‐pierre, Finance Director 100 West Atlantic Boulevard, Suite 480 Pompano Beach, Florida 33060 954 786‐4680 Andrew.jean‐pierre@copbfl.com July 20, 2021 To Whom It May Concern: It is my great pleasure that I provide this letter of recommendation for the services provided by Marcum LLP. We have been utilizing the services of Marcum LLP for approximately 5 years; and we are extremely pleased and satisfied with the services that they have provided to our organization. The firm’s services have always been performed to the highest degree of professionalism and excellence. The audit team is always courteous, professional, and very responsive in respects to the audit, and also in respect to any technical questions we may bring to their attention for further guidance. All audits were conducted in a timely, orderly, and systematic manner, encompassing all of the requirements of Government Auditing Standards and reporting requirements of the Governmental Accounting Standards Board (GASB). Marcum LLP review and recommendations for our annual financial report has also resulted in the City receiving the Certificate of Achievement for Excellence in Financial Reporting for the past five years from the GFOA. In addition, our City has been subject to Single Audits each year which have included Federal and State Single Audits that are performed in accordance with Uniform Guidance and the Florida Single Audit Act. Our City has also been required to issue a CRA stand‐alone financial statement in accordance with Florida Statutes, for which Marcum LLP has been able to share their expertise in. From our experience, I can express that Marcum LLP has a high level of expertise in all of these specified areas. The firm is always available to us throughout the year, not only during the audit. We highly recommend the firm of Marcum LLP to any organization requiring auditing and related consulting services. Please do not hesitate to contact my office if there are any questions regarding this letter of recommendation. Respectfully, Andrew Jean‐Pierre Finance Director G:\Finance\FIN_ADM\CORRES\FinRec 2021\21‐101 Marcum Recommendation Letter.docx FINANCE & ADMINISTRATIVE SERVICES 10770 West Oakland Park Boulevard, Sunrise FL, 33351 Phone: (954) 746-3217 Fax: (954) 572-2469 March 25, 2021 To Whom It May Concern: It is my great pleasure that I provide this letter of recommendation for the services provided by Marcum LLP. We have been utilizing the services of Marcum LLP for approximately 11 years; and we are extremely pleased and satisfied with the services that they have provided to our organization. The work performed by the partner to the staff level is to be commended. The audit team is always courteous, professional and very responsive. All audits were conducted in a timely, orderly, and systematic manner, encompassing all of the requirements of Government Auditing Standards and of the Governmental Accounting Standards Board (GASB). In addition, our City is usually subject to both Uniform Guidance and the Florida Single Audit Act. From my experience, I can express that Marcum LLP has a high level of expertise in both of these areas. The firm’s services have always been performed to the highest degree of professionalism. Their staff has always been very courteous, always willing to provide any required information and offering suggestions to improve systems, methods of operation, and facilitate the financial processes in our organization. The firm has always been a dependable resource in providing timely information and direction. The firm is always available to us throughout the year, not only during the audit. We highly recommend the firm of Marcum LLP to any organization requiring auditing and related consulting services. Please do not hesitate to contact my office if there are any questions regarding this letter of recommendation. Respectfully, Wendy Dunbar Finance and Administrative Services Director APPENDIX F MANAGEMENT LETTERS Marcum LLP n 450 East Las Olas Boulevard n Ninth Floor n Fort Lauderdale, Florida 33301 n Phone 954.320.8000 n Fax 954.320.8001 marcumllp.com June 30, 2021 To the Honorable Mayor, Members of the City Commission, and City Manager City of Deerfield Beach, Florida We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Deerfield Beach, Florida (the City) as of and for the fiscal year ended September 30, 2020. We did not audit the financial statements of the Pension Trust Funds, which represents 92%, 94% and 68%, respectively, of the assets, net position/fund balance and revenues/additions of the aggregate remaining fund information. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for the Pension Trust Funds is based on the reports of the other auditors. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, Government Auditing Standards, OMB Uniform Guidance and Chapter 10.550 Rules of the Auditor General as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 16, 2020. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during 2020 with the exception of and as described in Note I to the financial statements, the City adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Disclosures on Debt, Including Borrowing and Direct Placements. We noted no transactions entered into by The City during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the City’s financial statements were: FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE City of Deerfield Beach, Florida June 30, 2021 Page 2 Management’s estimate of the net pension liability in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and the total OPEB liability in accordance with GASB Statement No. 75, Accounting and Financial Reporting for Other Postemployment benefits Other than Pensions, are based on actuarial methods and assumptions used by the actuaries for the development of the funding valuations as well as the accounting valuations. The key factors impacting the assumptions, such as change in market conditions, are subject to change on an annual basis therefore and can have a significant impact on this estimate. We evaluated the key factors and assumptions used to develop the estimate described above, in determining that it is reasonable in relation to the financial statements taken as a whole. Management’s estimate of the allowance for uncollectible receivables is based on aging of receivables, historic loss levels, and an analysis of the collectability of individual accounts. We evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. There were no sensitive financial statements disclosures. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit other than noted in our audit findings which were provided to you in the City’s Comprehensive Annual Financial Report which caused the audited financial statements to be issued in an untimely manner. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected certain proposed misstatements. The attached schedule summarizes uncorrected misstatements of the financial statements. Management has determined that their effects are immaterial, both individual and in the aggregate, to the financial statements as whole. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE City of Deerfield Beach, Florida June 30, 2021 Page 3 Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated June 30, 2021. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to City’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. The Schedule of Findings and Questioned Costs which includes our audit findings and Appendix A reflecting the Current Year and Prior Years Recommendations to Improve Financial Management, are included in the reporting section of the City’s Comprehensive Annual Financial Report and include two significant deficiencies and one material weakness plus two management letter comments (observation and recommendation) along with management’s responses to correct/improve (corrective action plan) these reported matters and a status of prior year findings and recommendations. Other Matters We applied certain limited procedures to Management’s Discussion and Analysis, Budgetary Comparison Schedules – General Fund and Community Redevelopment Agency, Schedules of Changes in Net Pension Liability and Related Ratios, Schedule of Contributions, and Schedule of Investment Returns – Pension Trust Funds, Schedules of City’s Proportionate Share of Net Pension Liability and Contribution – FRS & HIS and the Schedule of Changes in the City’s Total OPEB Liability and Related Ratios, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE City of Deerfield Beach, Florida June 30, 2021 Page 4 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on Combining and Individual Fund Statements and Schedules and the Schedule of Expenditures of Federal Awards and State Financial Assistance, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the Introductory Section or Statistical Section, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the use of the Mayor, City Commission, and the City Manager and management of the City and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Marcum LLP FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Client: Engagement:10397505 - 2020 Deerfield Audit Period Ending:9/30/2020 Trial Balance:2.001.01 - General Fund Trial Balance Workpaper:07.05a - PAJE Report FY 2020 Account Description W/P Ref Debit Credit 100.001a 001-0000-133.02-00 DUE FROM OTHER GOVT UNITS / D/F STATE OF FLORIDA 408,259.00 001-0000-335.18-00 LOCAL GOVT 1/2 CENT SALES 406,094.00 001-0000-101.00-00 OPERATING CASH / CASH IN BANK 406,094.00 001-0000-335.18-00 LOCAL GOVT 1/2 CENT SALES 408,259.00 Total 814,353.00 814,353.00 HH05.950 606-0900-519.37-85 WORKERS COMP - INDEMNITY 1,029,797.00 606-0000-202.04-00 ACCOUNTS PAYABLE / INSURANCE CLAIMS PAYABLE 1,029,797.00 Total 1,029,797.00 1,029,797.00 Total Proposed Journal Entries 1,844,150.00 1,844,150.00 Total All Journal Entries 1,844,150.00 1,844,150.00 Proposed Journal Entries Proposed Journal Entries JE # 20 To adjust the state revenue share taxes to a two month lag. Proposed Journal Entries JE # 21 To accrue for the current portion of the self insurance liability at the fund level as of September 30, 2020.FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Marcum LLP n One Southeast Third Avenue n Suite 1100 n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601 n www.marcumllp.com April 28, 2021 To the Honorable Mayor, Village Council and Village Manager Village of Palmetto Bay, Florida We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Village of Palmetto Bay, Florida (the “Village”) as of and for the fiscal year ended September 30, 2020. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards, and Government Auditing Standards, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated March 9, 2021. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Village are described in Note 1 to the financial statements. No new accounting policies were adopted and the application of existing policies was not changed during the fiscal year 2020. We noted no transactions entered into by the Village during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate affecting the Village’s financial statements was. Management’s estimate of the total OPEB liability in accordance with GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. This liability is also based on actuarial methods and assumptions used by the actuary for the development of the actuarial valuation. The key factors impacting the assumptions are subject to change on an annual basis and therefore can have a significant impact on this estimate. We evaluated the key factors and assumptions used to develop the estimate described above in determining that it is reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was: FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Village of Palmetto Bay, Florida April 28, 2021 Page 2 The restatement of the opening balances as of October 1, 2019 of net position (Governmental Activities) and fund balance (General Fund) as discussed in Note 2 to the financial statements. The restatement of opening balances was related to a correction of the recognition of grant revenue that should have been accounted for and reported in the prior fiscal year in the amount of $890,248. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, one of the misstatements detected as a result of audit procedures and corrected by management was considered material and resulted in a restatement of prior period, as noted above (refer to Note 2 of the financial statements). Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated April 28, 2021. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Village’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Village of Palmetto Bay, Florida April 28, 2021 Page 3 Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as the Village’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. 2020 Comprehensive Annual Financial Report. The Schedule of Findings and Responses which includes our audit finding and Appendix A reflecting the Current Year Recommendation to Improve Financial Management, are included in the reporting section of the Village’s Comprehensive Annual Financial Report and includes a significant deficiency and a management letter comment (observation and recommendation) along with management’s responses to correct/improve (corrective action plan) these reported matters and a status of prior year findings and recommendations. 2019 Report On The Schedule Of Expenditures Of Federal Awards (SEFA) And Reporting Required By Uniform Guidance Certain qualifying expenditures were excluded originally from the fiscal year 2019 SEFA, which caused the 2019 SEFA to be understated initially and not meet the threshold requirement to be subject to a federal single audit in accordance with Uniform Guidance. This item is reported as a significant deficiency and as an instance of noncompliance (SD2019-002) and is reported in the stand-alone 2019 Report on the Schedule of Expenditures of Federal Awards And Reporting Required By Uniform Guidance. Other Matters Required Supplementary Information We applied certain limited procedures to Management’s Discussion and Analysis (MD&A), the budgetary comparison Schedule for the General Fund, and the Schedule of Changes in the Total OPEB Liability and Related Ratios, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. Other Information We were engaged to report on supplementary information other than RSI (Combining and Individual Fund Financial Statements), which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Village of Palmetto Bay, Florida April 28, 2021 Page 4 We were not engaged to report on the introductory and statistical analysis sections, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the use of the Honorable Mayor, Village Council, Village Manager, and management of the Village and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Marcum LLP FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Marcum LLP n One Southeast Third Avenue n Suite 1100 n Miami, Florida 33131 n Phone 305.995.9600 n Fax 305.995.9601 n www.marcumllp.com March 26, 2021 To the Honorable Mayor, Village Council and Interim Village Manager Village of Key Biscayne, Florida We have audited the financial statements of the governmental activities, the business-type activities and each major fund of the Village of Key Biscayne, Florida (the Village) for the fiscal year ended September 30, 2020. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards and Government Auditing Standards, OMB Uniform Guidance and Chapter 10.550 Rules of the Auditor General of the State of Florida, as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated December 1, 2020. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Village are described in Note 1 to the financial statements. No new accounting policies were adopted that impacted the financial statements and the application of existing policies was not changed for the fiscal year ended September 30, 2020 with the exception of and as described in Note 1 to the financial statements, the Village adopted Governmental Accounting Standards Board (GASB) Statement No. 88, Certain Debt Disclosures including Direct Borrowings and Direct Placement which improves the information that is disclosed in notes to government financial statements related to debt, including direct borrowings and direct placements as well as the financial impact of events of default or termination clauses. There is no cumulative effect on financial statement amounts as a result of this accounting change. We noted no transactions entered into by the Village during the fiscal year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimates affecting the Village’s financial statements were: FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Village of Key Biscayne, Florida March 26, 2021 Page 2 Management’s estimate of the net pension liability in accordance with GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and the total OPEB liability in accordance with GASB Statement No. 75, Accounting and Reporting for Postemployment Benefits other than Pensions, are based on actuarial methods and assumptions used by the actuary in conjunction with the Village for the development of the funding actuarial valuation as well as the actuarial accounting valuation. We evaluated the key factors and assumptions used to develop the estimate described above, in determining that it is reasonable in relation to the financial statements taken as a whole. Management’s estimate of the allowance for uncollectible receivables is based on a historical analysis of the collectability of individual accounts. We evaluated the key factors and assumptions used to develop the allowance in determining that it is reasonable in relation to the financial statements taken as a whole. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: The footnotes to the financial statements as required under GASB Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27 and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, which require the Village to recognize a net pension liability and a total OPEB liability, respectively, in their financial statements as described above. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. None of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit’s financial statements taken as a whole. In addition, the attached schedule includes one uncorrected misstatement of the financial statements. Management has determined that its effect is immaterial to the financial statements taken as a whole. FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Village of Key Biscayne, Florida March 26, 2021 Page 3 Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditors’ report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 26, 2021. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Village’s financial statements or a determination of the type of auditors’ opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as Village’s auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. The Schedule of Findings and Questioned Costs which includes our audit findings and Appendix A reflecting the Current Year and Prior Years Recommendations to Improve Financial Management, are included in the reporting section of the Village’s Comprehensive Annual Financial Report and include three significant deficiencies and one material weakness plus a management letter comment (observation and recommendation) along with management’s responses to correct/improve (corrective action plan) these reported matters and a status of prior year findings and recommendations. Other Matters We applied certain limited procedures to Management’s Discussion and Analysis, Budgetary Comparison Schedules for the General Fund, Transportation Special Revenue Fund, and Pros Land Trust Special Revenue Fund, the Schedule of Changes in the Village’s Net Pension Liability and Related Ratios, Schedule of Village Contributions, Schedule of Investment Returns, Schedule of Changes in the Total OPEB Liability and Related Ratios and notes to the required supplementary information (RSI), which supplements the basic financial statements. Our procedures consisted of FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Village of Key Biscayne, Florida March 26, 2021 Page 4 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 did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on the budgetary comparison schedule for the capital improvements fund and the Schedule of Expenditures of Federal Awards and State Financial Assistance, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on Introductory Section or Statistical Section, which accompany the financial statements but are not RSI. We did not audit or perform other procedures on this other information and we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the use of the Mayor, Village Council, Interim Village Manager and management of the Village and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Marcum LLP FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE Village of Key Biscayne, Florida March 26, 2021 Page 5 Uncorrected misstatement: FOR PROPOSAL PURPOSES ONLY - DO NOT DISTRIBUTE CITY 0 '1"V OF SUK �'' CITY OF SUNNY ISLES BEACH PART 1- SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE FINANCIAL STATEMENTS: SUPPORTING SCHEDULE FOR AUDIT SERVICES I. Proposer must use the Cost Proposal Sheet below to submit Proposer's price. II. Proposer shall hold the Prices firm throughout the Contract period. Proposer guarantees response time necessary to have a team return to correct unfinished or unsatisfactory services. Title Hours Proposed Hourly Rates Proposed Total Partners See following pages See following pages $ See detail on following pages Managers _ $ $ Supervisory Staff Staff $ Other (specify) $ All-inclusive Price for Audit Services FY 2021-2022 $ 49,375 All-inclusive Price for Audit Services FY 2022-2023 All-inclusive Price for Audit Services FY 2023-2024 OPTIONAL RENEWAL YEARS $ $ 49,375 49,375 All-inclusive Price for Audit Services FY 2024-2025 $ 50,856 All -Inclusive Price for Audit Services FY 2025-2026 $ 52,382 Other Expenses (specify): $ 148,125 Written Grand Total Price for Audit Services (3 Years) Name and title of -authorized sig4. Moises D. Ariza, Partner Signature: `7 NOTE: If the proposed hourly.rates'used to calculate the total all-inclusive price for any contract year are different from contract year 1 rates, provide an index for those years or provide rates for each staff level and each contract year for which there is a change. City of Sunny Isles Beach I Request for Proposal No. 22-02-01 OF Wt4 r'"_ SCHEDULE OF PROPOSAL PRICES PART 2 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE 2022 FINANCIAL STATEMENTS: COMBINING SCHEDULE -ALL SERVICES Nature of Service to be Provided Schedule Total Florida Single Audit Federal Single Audit See following page See following page See following page See following page $4,500 $ 4,500 $10,000 $ 8,000 EDP Auditing Services CAFR (preparing, editing and printing) Other (specify) SUBTOTAL $ 27,000 $27,000 Total Amount Written Each service described in this RFP - Special Considerations and Services should be supported by an individual schedule in the format provided on Part 1 of the Schedule of Proposal Prices. City of Sunny Isles Beach I Request for Proposal No. 22-02-01 O O O V1 O ul O N N 1- 1 �* V m N Q1. lf'� Q). 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