HomeMy WebLinkAboutReso 2022-3312RESOLUTION NO. 2022 - 3612-
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF SUNNY ISLES BEACH,
FLORIDA, AWARDING REQUEST FOR PROPOSALS NO. 22-02-01 AND
ESTABLISHING A RANKING OF FIRMS FOR PROFESSIONAL AUDITING SERVICES,•
AUTHORIZING THE AUDIT COMMITTEE TO NEGOTIATE AN AGREEMENT WITH
THE TOP RANKED FIRM; AUTHORIZING THE CITY MANAGER TO EXECUTE SAID
AGREEMENT, PROVIDED SAID AGREEMENT IS FIRST APPROVED BY THE CITY
ATTORNEY AS TO FORM AND LEGAL SUFFICIENCY; FURTHER AUTHORIZING THE
CITY MANAGER AND CITY ATTORNEY TO DO ALL THINGS NECESSARY TO
EFFECTUATE THIS RESOLUTION; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Section 4.10 of the Sunny Isles Beach Charter ("Charter") requires an
independent audit of the City of Sunny Isles Beach's ("City") accounts on at least an annual
basis; and
WHEREAS, on January 20th, 2022, via Resolution No. 2022-3293, the City Commission
established an Auditor Selection Committee ("Committee") to be responsible for preparing,
issuing, and evaluating a Request for Proposal ("RFP") for Professional Auditor Services
("Services"); and
WHEREAS, in accordance with industry best practices as established by the Government
Finance Officers Association ("GFOA"), RFP No. 22-02-01 was issued, for which three (3)
responses were received; and
WHEREAS, the Committee reviewed all the proposals received, and recommends that
the ranking of the firms, based on their experience and qualifications, be as follows:
1. Marcum LLP
2. Keefe, McCullough & Co., LLP; and
3. Caballero Fierman LLerena & Garcia, LLP.
WHEREAS, the City Commission desires to authorize the Committee to negotiate an
Agreement with the top ranked firm of Marcum LLP, provided that said agreement is first
approved as to form and legal sufficiency by the City Attorney. Should negotiations with the top
ranked firm prove to be unsuccessful, the Committee may engage in negotiations with the two
other ranked firms, in order.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF SUNNY
ISLES BEACH, FLORIDA, AS FOLLOWS:
Section 1. Ranking of Firms. The ranking of firms to perform independent auditing service
for the City are: 1) Marcum LLP; 2) Keefe, McCullough & Co., LLP; and 3) Caballero Fierman
Llerena & Garcia, LLP.
@BCL@700CD74F.Doc Page 1 of 2
Section 2. Authority of Auditor Selection Committee. The Audit Committee is hereby
authorized to negotiate an agreement with the top ranked firm, provided said agreement is
first approved as to form and legal sufficiency by the City Attorney. Should the negotiations
with the top ranked firm prove to be unsuccessful, the Auditor Selection Committee is hereby
authorized to engage and negotiate an agreement with the next ranked firms, in order, until an
agreement reached.
Section 3. Authorization of City Manager and City Attorney. Upon successful negotiations,
the City Manager is hereby authorized to execute the Agreement, provided said agreement is
first approved as `to form and legal sufficiency by the City Attorney. Furthermore, the City
Manager and City Attorney are hereby authorized to do all things necessary to effectuate this
Resolution.
Section 4.
ATT T:
Mau 'cio Be
Effective Date. This Resolution shall become effective upon passage.
PASSED AND ADOPTED on this 12' day of April 2022.
//Z-
Dana
Robin Goldman, Mayor
APPROVED AS TO FORM
AND LEGAL SUFFICIENCY:
a
icur, CMC, City Clerk Edward A. Dion, City Attorney
Moved by: �C. $ Seconded by:
Vote:
Mayor Goldman ✓ (Yes) (No)
Vice Mayor Viscarra (Yes) (No)
Commissioner Joseph ✓(Yes) (No)
Commissioner Lamar 95CWV- Yes) (No)
Commissioner Stuyvesant (Yes) (No)
@BCL@700CD74F.Doc Page 2 of 2
AGREEMENT BETWEEN
THE CITY OF SUNNY ISLES BEACH AND MARCUM LLP
� z CONTRACT NO: 2022-7834
T S CONT CTUAL AGREEMENT (hereinafter referred to as the "Agreement")
is made this day of 'PA,l L , 2022, by and between the CITY OF SUNNY ISLES
BEACH, Florida, (hereinafter referred to as "City"), and MARCUM LLP (hereinafter referred to as
"Consultant") whose Federal I.D. # is 11-1986323.
RECITALS
WHEREAS, the City is in need of a professional auditing consultant to audit the basic
financial statements of the City as of and for the fiscal years ending September 30, 2022, 2023 and
2024 and to provide an opinion on the conformity of this material with accounting principles generally
accepted in the United States ("Services"); and
WHEREAS, on February 7, 2022, the City issued RFP No. 22-02-01, "Professional
Independent Auditing Services", soliciting the aforementioned Services, a copy of which is attached
hereto as Attachment "A" (the "RFP"); and
WHEREAS, Consultant, through its response to the RFP, has expressed the ability and desire
to provide these Services, at a negotiated rate. A copy of Consultant's response to the RFP and revised
price proposal are attached hereto as Attachment "B" and incorporated herein by reference; and
WHEREAS, the Consultant will provide the Services, as well as supplemental services for
single year audits and other audit services on an as needed basis, as more fully described in Attachment
"A", in an amount not to exceed One Hundred Ninety -One Thousand Five Hundred Dollars
($191,500.00), subject to the terms and conditions contained herein; and
WHEREAS, the Consultant represents that it has expertise to perform these Services.
NOW THEREFORE, in consideration of the foregoing and for the mutual covenants,
representations and warranties and other good and valuable consideration, the receipt and adequacy of
which is hereby acknowledged, the parties agree as follows:
1. RECITALS. The Recitals set forth above are hereby incorporated into this Agreement and
made a part hereof for reference.
2. CONSULTING SERVICES. Consultant shall audit the basic financial statements of the City as
of and for the fiscal years ending September 30, 2022, 2023 and 2024 and will provide
supplemental audit services to the City, as more fully described in Attachment "A", attached hereto
and made a part hereof. The City is required to adhere to U.S Generally Accepted Accounting
Principles, these requirements, as well as the requirements stipulated by auditing standards
generally accepted in the United States and Government Auditing Standards which are to be
followed by the Consultant, are further described in Attachment `B".
1
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
3. TERM. Subject to the provisions relating to the termination of this Agreement as set forth in
Paragraph 9 hereunder, the term of this Agreement shall begin upon the execution of this
Agreement and shall end upon completion of the Services for fiscal year September 30, 2024
("Initial Term"). The parties shall have the sole option to extend this Agreement for two (2)
additional one (1) year terms ("Renewal Terms"). The City, at its sole discretion, reserves the
right to extend the Agreement for up to one hundred -eighty (180) days beyond the Initial Term or
any Renewal Terms to ensure continuity of services
4. COMPENSATION. Payment to Consultant for all charges under this Agreement shall be in
accordance with this Agreement, the schedule of charges reflected in Attachment "A" and the revised
schedule of charges contained in Attachment `B." The total compensation for the Initial Term of the
Agreement shall be in a total amount not to exceed One Hundred Ninety -One Thousand Dollars
($191,000.00), as more particularly set forth below:
Base fee for audit services, pursuant to Attachment `B": $130,500.00
Supplemental Services, as needed, pursuant to Attachment "A": $61,000.00
5. STAFFING CIIANGES. Engagement partners, managers, other supervisory staff and
specialists initially assigned to this Agreement between City and Consultant may be changed if
those personnel leave the firm, are promoted or are assigned to another office. These personnel
may also be changed for other reasons with the express written permission of the City of Sunny
Isles Beach. However, in either case, the City of Sunny Isles Beach retains the right to approve or
reject replacements who are subsequently assigned to this Agreement between the City and
Consultant.
6. INDEPENDENT CONSULTANT RELATIONSHIP. The Consultant is an independent
consultant and shall be treated as such for all purposes. Nothing contained in this Agreement or
any action of the parties shall be construed to constitute or to render the Consultant an employee,
partner, agent, shareholder, officer or in any other capacity other than as an independent consultant
other than those obligations which have been or shall have been undertaken by the City, Consultant
shall be responsible for any and all of its own expenses in performing its duties as contemplated
under this Agreement. The City shall not be responsible for any expense incurred by the
Consultant. The City shall have no duty to withhold any Federal income taxes or pay Social
Security services and that such obligations shall be that of the Consultant, other than those set forth
in this Agreement. Consultant shall furnish its own transportation, office and other supplies as it
determines necessary in carrying out its duties under this Agreement.
7. OWNERSHIP OF DOCUMENTS AND:EOUIPMENT. All documents prepared by the
Consultant pursuant to this Agreement and related Services to this Agreement are intended and
represented for the ownership of the City only. Any other use by Consultant or other parties shall
be approved in writing by the City. If requested, Consultant shall deliver the documents to the City
within fifteen (15) calendar days.
2
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
The audit documentation for this Contract will be retained for a minimum of three years after
the report release. No audit documentation will be destroyed without the consent of the consent of
the City. Consultant agrees to provide copies of audit documentation to the City. Consultant agrees
to provide copies of audit documentation to the City of its designee upon request.
8. INDET JANI F'ICATION. Consultant agrees to indemnify and hold harmless, the City, its
officers, agents, and employees from, and against, any and all claims, actions, liabilities, losses and
expenses including, but not limited to, attorney's fees for personal, economic or bodily injury,
wrongful death, loss of or damage to property, at law or in equity, which may arise or may be
alleged to have risen from the negligent acts, errors, omissions or other wrongful conduct of the
Consultant, agents or other personal entity acting under Consultant's control in connection with the
Consultant's performance of Services pursuant to that Agreement and to that extent the Consultant
shall pay such claims and losses and shall pay all such costs and judgments which may issue from
any lawsuit arising from such claims and losses including wrongful termination or allegations of
discrimination or harassment, and shall pay all costs and attorneys' fees expended by the City in
defense of such claims and losses including appeals. The parties agree that ten percent (10%) of
the total compensation is a specific consideration from the City to the Consultant for this
indemnity.
9. TERMINATION.
A. If, through any cause within reasonable control, the Consultant shall fail to fulfill in a
timely manner or otherwise violate any of the covenants, agreements or stipulations
material to this Agreement, the City shall have the right to terminate the Services then
remaining to be performed. Prior to the exercise of its option to terminate for cause, the
City shall notify the Consultant in writing of its violation of the particular terms of the
Agreement and grant Consultant ten (10) days to cure such default. If the default
remains uncured after ten (10) days the City may terminate this Agreement.
(i) In the event of termination, all finished and unfinished documents, data and other
work product prepared by Consultant (and sub consultant(s)) shall be delivered to
the City and the City shall compensate the Consultant for all Services satisfactorily
performed prior to the date of termination, as provided in Paragraph 4 herein.
(ii) Notwithstanding the foregoing, the Consultant shall not be relieved of liability to the
City for damages sustained by it by virtue of a breach of the Agreement by
Consultant and the City may reasonably withhold payment to Consultant for the
purposes of set-off until such time as the exact amount of damages due the City
from the Consultant is determined.
B. Termination for Convenience of City. The City may, for its convenience and without
cause terminate the Services then remaining to be performed at any time by giving
Consultant ten (10) days written notice. The terms of Paragraphs A(i) and A(ii) shall be
applicable hereunder.
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
C. Termination -for Insolvency. The City also reserves the right to terminate the remaining
Services to be performed in the event the Consultant is placed either in voluntary or
involuntary bankruptcy or makes any assignment for the benefit of creditors.
10. WAIVER OF RIGIIT TO JURY TRIAL. Each of the parties hereto hereby knowingly,
voluntarily and intentionally, waive the right which any may have to a jury trial in respect of any
action, proceeding, litigation or counterclaim based hereon or arising out of, under, on or in
connection with this agreement or any course of conduct, course of dealing, statements (whether
verbal or written) or actions of either of party.
11. CONFIDENTIAL. INFORMATION. The Consultant shall not, either during the term of this
Agreement or any time for a period of TEN (10) years subsequent to that date upon which the
Consultant shall leave the employment of the City for any reason whatsoever, disclose to any
person or entity, other than in the discharge of the duties of the Consultant under this Agreement,
any information which the City designates in writing as "confidential." As a violation by the
Consultant of the provisions of this Section could cause irreparable injury to the City and there is
no adequate remedy at law for such violation, the City shall have the right, in addition to any other
remedies available to it at law or in equity, to enjoin the Consultant in a court of equity for
violating such provisions.
12. NOTICES. All notices and other communications required or permitted to be given under
this Agreement by either party to the other shall be in writing and shall be sent (except as otherwise
provided herein) (i) by certified or registered mail, first class postage prepaid, return receipt
requested, (ii) by guaranteed overnight delivery by a nationally recognized courier service, or (iii)
by facsimile with confirmation receipt (with a copy simultaneously sent by certified or registered
mail, first class postage prepaid, return receipt requested or by overnight delivery by traditionally
recognized courier service), addressed to such party as follows:
If to the City:
Stan Morris
With a copy to:
City Manager
Edward Dion, Esq.
City of Sunny Isles Beach
City Attorney
18070 Collins Avenue
City of Sunny Isles Beach
Fourth Floor
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
Fourth Floor
Tel: (305) 792-1776
Sunny Isles Beach, Florida 33160
Tel: (305) 792-1766
If to the
Moises D. Ariza, CPA, CGMA
Consultant:
Partner
Marcum LLP
One Southeast 3rd Avenue, Suite 1100
Miami, FL 33131
moises.ariza@marcumllp.com
305)995-9600
4
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
13. GOVERNING LAW. The law of the State of Florida shall govern this Agreement and venue
for and any action shall be brought in Miami -Dade County, Florida. In the event of any litigation
arising out of this Agreement or to settle issues arising hereunder, the prevailing party in such
litigation shall be entitled to recover against the other party its costs and expenses, including
reasonable attorneys' fees, which shall include any fees and costs attributable to appellate
proceedings arising on and of such litigation
14. AUDIT RECORDS. The Consultant shall make available to the City or its representative all
required financial records associated with the Agreement for a period of THREE (3) years.
15. NON-DISCRIMINATION. The Consultant agrees to comply with all local and state civil
rights ordinances and with Title VI of the Civil Rights Act of 1984 as amended, Title VIII of the
Civil Rights Act of 1968 as amended, Title 1 of the Housing and Community Development Act of
1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities
Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and with Executive
Order 11248 as amended by Executive Orders 11375 and 12086. The Consultant will not
discriminate against any employee or applicant for employment because of race, color, creed,
religion, ancestry, national origin, sex, disability or other handicap, age, marital/familial status, or
status with regard to public assistance. The Consultant will take affirmative action to ensure that
all employment practices are free from such discrimination. Such employment practices include
but are not limited to the following: hiring, upgrading, demotion, transfer, recruitment or
recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and
selection for training, including apprenticeship. The Consultant agrees to post in conspicuous
places, available to employees and applicants for employment, notices to be provided by the City
setting forth the provisions of this non-discrimination clause.
The Consultant agrees to comply with any Federal regulations issued pursuant to compliance with
Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 708), which prohibits discrimination
against the handicapped in any Federally assisted program.
16. INSURANCE. Consultant shall, at its sole cost and expense, during the period of any work
being performed under this Agreement, procure and maintain the following minimum insurance
coverages to protect the City and Consultant against all loss, claims, damage and liabilities caused
by Consultant, its agents, consultants or employees, as more particularly set forth below:
(a) Comprehensive General Liability Insurance: Consultant shall be required to purchase,
maintain, and keep in full force, effect and good standing, Comprehensive General Liability
Insurance with primary limits of One Million Dollars ($1,000,000.00) per occurrence, and Two
Million Dollars ($2,000,000.00) aggregate during the initial and any renewal term of this
Agreement. Coverage must be afforded on a form no more restrictive than the latest edition of
the Comprehensive General Liability policy, without restrictive endorsements, as filed by the
Insurance Services Office and must include:
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
• Premises and Ongoing Completed Operations — on a primary and non-
contributory basis including waiver of subrogation on behalf of the City of
Sunny Isles Beach.
Independent Consultants
• Broad Form Property Damage
• Broad Form Contractual Coverage applicable to this specific Contract,
including any hold
• Harmless and/or indemnification agreement.
• Personal Injury Coverage with Employee and Contractual Exclusions removed,
with minimum limits of coverage equal to those required for Bodily Injury
Liability and Property Damage Liability.
• $1,000,000 Comprehensive Business Automobile — Owned & Non -owed
Autos.
(b) Errors and Omissions Insurance: Professional Liability ("Errors and
Omissions") insurance with minimum limits of Five Hundred Thousand Dollars
($500,000.00) per occurrence.
(c) Workers' Compensation Insurance for statutory obligations imposed by Worker's
Compensation or Occupational Disease Laws, including, where applicable, the United
States Longshoremen's and Harbor Worker's Act, the Federal Employers' Liability Act
and the Homes Act. Employer's Liability Insurance shall be provided with a minimum
of one million dollars ($1,00,000.00) per accident. Consultant agrees to be responsible
for the employment, conduct and control of its employees and for any injury sustained
by such employees in the course of their employment.
Such policies of insurance shall not diminish Consultant's indemnification obligations hereunder. The
insurance policy shall be issued by such company, in such forms and with such limits of liability and
deductibles as are acceptable to the City and shall be endorsed to be primary over any insurance, which
the City may maintain. Before any work under this Agreement is performed, and at any time upon
request, Consultant shall furnish to the City certificates of insurance evidencing the minimum required
coverage and appropriately endorsed for contractual liability with the City named as an additional
insured. All policies shall contain a waiver of subrogation endorsement. All policies and certificates
shall be in forms and issued by insurance companies acceptable to the City's Risk Management
Department. All insurance policies and certificates of insurance shall provide that the policies may not
be canceled or altered without thirty (30) calendar days prior written notice to the City Manager or his
designee.
17. CONFLICT OF fNTEREST. The Consultant agrees to adhere to and be governed by the
Miami -Dade County Conflict of Interest Ordinance Section 2-11.1, as amended; and by the City of
Sunny Isles Beach Ordinance No. 99-82, which are incorporated by reference herein as if fully set
forth herein, in connection with the Agreement conditions hereunder. The Consultant covenants
that it presently has no interest and shall not acquire any interest, direct or indirectly which should
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
conflict in any manner or degree with the performance of the Services. The Consultant further
covenants that in the performance of this Agreement, no person having any such interest shall
knowingly be employed by the Consultant. No member of, or delegate to the Congress of the
United States shall be admitted to any share or part of this Agreement or to any benefits arising
therefrom.
18. CONFLICTING PROVISIONS. The terms, statements, requirements, and provisions
contained in this Agreement shall prevail and be given effect over any conflicting or inconsistent
term, statement, requirement or provision contained in any other document or attachment,
including but not limited to Attachments "A", `B", "C", "D", and `B" a copy of which are attached
hereto.
19. PROMBITION AGAINST CONTRACTING WITH SCRUTINIZED COMPANIES.
Pursuant to Florida Statutes Section 287.135, contracting with any entity that is listed on the
Scrutinized Companies that Boycott Israel List or that is engaged in the boycott of Israel is
prohibited. Consultants must certify that the company is not participating in a boycott of Israel.
Any contract for goods or services of One Million Dollars ($1,000,000) or more shall be
terminated at the City's option if it is discovered that the entity submitted false documents of
certification, is listed on the Scrutinized Companies with Activities in Sudan List, the Scrutinized
Companies with Activities in the Iran Petroleum Energy Sector List, or has been engaged in
business operations in Cuba or Syria after July 1, 2018.
Any contract entered into or renewed after July 1, 2018, shall be terminated at the City's option if
the company is listed on the Scrutinized Companies that Boycott Israel List or engaged in the
boycott of Israel. Consultants must submit the certification that is attached to this agreement as
Attachment "C". Submitting a false certification shall be deemed a material breach of contract. The
City shall provide notice, in writing, to the Consultant of the City's determination concerning the
false certification. The Consultant shall have ninety (90) days following receipt of the notice to
respond in writing and demonstrate that the determination was in error. If the Consultant does not
demonstrate that the City's determination of false certification was made in error, then the City
shall have the right to terminate the contract and seek civil remedies pursuant to Florida Statute
Section 287.135.
20. E -VERIFY. Florida Statute 448.095 directs all public employers, including municipal
governments, to verify the employment eligibility of all new public employees through the U.S.
Department of Homeland Security's E -Verify System, and further provides that a public employer
may not enter into a contract unless each party to the contract registers with and uses the E -Verify
system. Florida Statute 448.095 further provides that if a Consultant enters into a contract with a
subconsultant, the subconsultant must provide the Consultant with an affidavit stating that the
subconsultant does not employ, contract with, or subcontract with an unauthorized alien. In
accordance with Florida Statute 448.095, Consultant is required to verify employee eligibility using
the E -Verify system for all existing and new employees hired by Consultant during the contract
term. Further, Consultant must also require and maintain the statutorily required affidavit of its
subconsultants. It is the responsibility of Consultant to ensure compliance with E -Verify
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
requirements (as applicable). To enroll in E -Verify, employers should visit the E -Verify website
(https://www.e-verify.gov/employers/enrolling-in-e-verify) and follow the instructions. The
Consultant must retain the I-9 Forms for inspection, and provide the attached E -Verify Affidavit,
attached hereto as Attachment "D".
21. CONSULTANT'S EMPLOYEES. Prior to performing work in the City pursuant to this
Agreement, all managers and employees of Consultant, any independent contractors, and any
subcontractors (collectively "Personnel") shall be required to undergo a criminal background check
consisting of a Florida Department of Law Enforcement ("FDLE") and Florida Crime Information
Center/National Crime Information Center ("FCIC/NCIC") criminal records check, which will be
facilitated by the City. Coordination of the background check described herein shall be through the
City's Human Resources Department at 305-792-1708. The Consultant shall be solely responsible for
the cost of the background check described herein. Failure of Consultant to comply with the provisions
of Section 21, herein, shall be cause for termination of the Agreement.
22. MISCELLANEOUS.
A. In the event any provision of this Agreement is found to be void and unenforceable by a
court of competent jurisdiction, the remaining provisions of this Agreement shall nevertheless be
binding upon the parties with the same effect as though the void or unenforceable provisions had been
severed and deleted.
B. This Agreement may be executed in multiple identical counterparts, each of which shall
be deemed an original for all purposes.
C. This Agreement shall constitute the entire agreement between the parties with respect to
the subject matter hereof, and it shall supersede all previous and contemporaneous oral and written
negotiations, commitments, agreements and understandings relating hereto.
D. Any modification of this Agreement shall be effective only if in writing and signed by
the parties to this Agreement.
E. No waiver of any provision of this Agreement shall be valid or enforceable unless such
waiver is in writing and signed by the party granting such waiver.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement in triplicate on
the day and year first written above.
[SIGNATURE PAGE TO FOLLOW]
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
Print Name
ATTEST:
BY:
Mauricio
Clerk
MARCU: LLP
BYj _
�• iz� P , i�lner
CITY OF SUNNY ISLES BEACH
BY: -
Dana Robin Goldman, Mayor
APPROVED AS TO FORM AND
LE UFFI ENCY
BY:
Edward A. Dion, City Attorney
9
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
Attachment "A"
10
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
Attachment "B"
11
Marcum LLP
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
Attachment "C"
12
Marcum LLP
yVt�11Y-lY�( '
p�! v
u\........... CONTRACTOR ANTI -BOYCOTT CERTIFICATION
,4`C,tr p11U11 n�10 ��
[PURSUANT TO FLORIDA STATUTE § 287.1351
I, Moises D. Ariza , on behalf of MARCUM LLP ,
Print Name Company Name
certifies that MARCUM LLP does not:
Company Name
1. Participate in a boycott of Israel; and
2. Is not on the Scrutinized Companies that Boycott Israel list; and
3. Is not on the Scrutinized Companies with Activities in Sudan List; and
4. Is not on the Scrutinized Companies with Activities in the Iran Petroleum
Energy Sector List; and
5. Has not engaged in business operations in Cuba or Syria.
,6�)�_/,
_ ,/ Signa re (%
PARTNER
Title
4-15-2022
Date
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
Attachment "D"
13
Marcum LLP
E -Verify Affidavit
Florida Statute 448.095 directs all public employers, including municipal governments, to verify the
employment eligibility of all new public employees through the U.S. Department of Homeland Security's E -
Verify System, and further provides that a public employer may not enter into a contract unless each party
to the contract registers with and uses the E -Verify system.
Florida Statute 448.095 further provides that If a contractor enters into a contract with a subcontractor, the
subcontractor must provide the contractor with an affidavit stating that the subcontractor does not employ,
contract with, or subcontract with an unauthorized alien.
In accordance with Florida Statute 448.095, all contractors doing business with the City of Sunny Isles
Beach are required to verify employee eligibility using the E -Verify system for all existing and new
employees hired by the contractor during the contract term. Further, the contractor must also require and
maintain the statutorily required affidavit of its subcontractors. It is the responsibility of the awarded vendor to
ensure compliance with E -Verify requirements (as applicable). To enroll in E -Verify, employers should visit
the E -Verify website (http.s://www:a-verify.gov/emplovers/enrolling-in-e-verify) and follow the
instructions. The contractor must, as usual, retain the 1-9 Forms for inspection.
By affixing your signature below you hereby affirm that you will comply with E -Verify requirements.
MARCUM LLP
Company Name
OfferdLSig ature%
MOISES IJ�._ARIZA
Print Name
I1-1986323
Federal Employer Identification Number (FEIN)
/S -201 Z.
Date
PARTNER
Title
Notary Public Information
tk �j J
Sworn to and subscribed before me on this this A day of 2022.
By MOISES D. ARIZA
.I? Is personally known to me
❑ Has produced identification (type of identification produced: )
'T� 11, t3RANDELOPEZ
Si of Notary Fubl'c * Commission # HH 7076
l Notary Public
ar` State of Florida
` My Commission Expires
:`�� June 04.2024
�k- HHrl09 lyra D`i,�oa�`
Print or Stamp of Notary Public Expiration Date
City of Sunny Isles Beach 18070 Collins Avenue, Sunny Isles Beach, Florida 33160
(305) 947-0606 phone (305) 949-3113 Fax
Attachment `B"
14
Marcum LLP
MARCUM
ACCOUNTANTS • ADVISORS
Attachment E
April 12, 2022
To the Honorable Mayor, City Commission, and City Manager
City of Sunny Isles Beach, Florida
Re: Engagement of Marcum LLP
We are pleased to confirm our understanding of the services Marcum LLP ("Marcum," the
"Firm," "we," "us" or "our") are to provide the City of Sunny Isles Beach, Florida (the "City,"
"you" or "your") for the fiscal years ended September 30, 2022 through 2024, with the City's
option for two (2) additional one (1) year periods through September 30, 2026. We will audit the
financial statements of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information, including the related notes to the financial
statements, which collectively comprise the basic financial statements of the City as of and for
the fiscal years ended September 30, 2022 through 2024, with the City's option for two (2)
additional (1) year periods through September 30, 2026. Accounting standards generally
accepted in the United States of America provide for certain required supplementary information
(RSI), such as management's discussion and analysis (MD&A), to supplement the City's basic
financial statements. Such information, although not part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential
part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. As part of our engagement, we will apply certain limited
procedures to City's RSI in accordance with auditing standards generally accepted in the United
States of America. These limited procedures will consist of inquiries of management regarding
the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We will not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance. The following RSI is
required by generally accepted accounting principles and will be subjected to certain limited
procedures, but will not be audited:
1) Management's Discussion and Analysis
2) Schedule of Changes in City's Proportionate Share Net Pension Liability and Related
Ratios
3) Schedule of City's Contributions — Pensions
4) Schedule of Changes in Total OPEB Liability and Related Ratios
5) Budgetary Comparison Schedules
IN
MARCUMGROUP
MEMBER
Marcum UP u One Southeast Third Avenue a Suite 1100 -Miami, Florida 33131 a Phone 305.995.9600 u Fax 305.995.9601 a www.marcumilp.com
City of Sunny Isles Beach, Florida
April 12, 2022
Page 2
We have also been engaged to report on supplementary information other than RSI that
accompanies City's financial statements. We will subject the following supplementary
information to the auditing procedures applied in our audit of the basic financial statements and
certain additional procedures, including comparing and reconciling such information directly to
the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America, and will provide an opinion on it
in relation to the basic financial statements as a whole:
1) Schedule of Expenditures of Federal Awards and State Financial Assistance, as applicable
2) Combining and Individual Fund Financial Statements and Schedules
3) Budgetary Comparison Schedules
The following other information accompanying the basic financial statements will not be
subjected to the auditing procedures applied in our audit of the financial statements, and our
auditors' report will not provide an opinion or any assurance on that other information.
1) Introductory Section
2) Statistical Section
Audit Cl►Iiiectives
The objective of our audit is the expression of opinions as to whether your basic financial
statements are fairly presented, in all material respects, in conformity with U.S. generally
accepted accounting principles and to report on the fairness of the supplementary information
referred to in the second paragraph when considered in relation to the financial statements as a
whole. The objective also includes reporting on:
Internal control over financial reporting and compliance with provisions of laws,
regulations, contracts, and award agreements, noncompliance with which could have a
material effect on the financial statements in accordance with Government Auditing
Standards.
Internal control over compliance related to major programs and an opinion (or disclaimer
of opinion) on compliance with federal statutes, regulations, and the terms and conditions
of federal awards that could have a direct and material effect on each major program in
accordance with the Single Audit Act Amendments of 1996 and Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and the
Florida Single Audit Act and Chapter 10.550, Rules of the Auditor General of the State
of Florida.
• The Government Auditing Standards report on internal control over financial reporting
and on compliance and other matters will include a paragraph that states that (1) the
purpose of the report is solely to describe the scope of testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the
City of Sunny Isles Beach, Florida
April 12, 2022
Page 3
effectiveness of the entity's internal control or on compliance, and (2) the report is an
integral part of an audit performed in accordance with Government Auditing Standards in
considering the entity's internal control and compliance. The Uniform Guidance and
Florida Single Audit Act report on internal control over compliance will include a
paragraph that states that the purpose of the report on internal control over compliance is
solely to describe the scope of testing of internal control over compliance and the results
of that testing based on the requirements of the Uniform Guidance and Florida Single
Audit Act. Both reports will state that the report is not suitable for any other purpose
Our audit will be conducted in accordance with auditing standards generally accepted in the
United States of America; the standards for financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; the Single Audit Act
Amendments of 1996; and the provisions of the Uniform Guidance, Florida Single Audit Act and
Chapter 10.550, Rules of the Auditor General of the State of Florida, and will include tests of
accounting records, a determination of major program(s) and major project(s) in accordance with
the Uniform Guidance, Florida Single Audit Act and Chapter 10.550, Rules of the Auditor
General of the State of Florida, and other procedures we consider necessary to enable us to
express such opinions. We will issue written reports upon completion of our Single Audit. Our
reports will be addressed to the Honorable Mayor, City Commission, and City Manager.
We cannot provide assurance that unmodified opinions will be expressed. Circumstances may
arise in which it is necessary for us to modify our opinions or add emphasis -of -matter or other -
matter paragraphs. If our opinions on the financial statements or the Single Audit compliance
opinions are other than unmodified, we will discuss the reasons with you in advance. If, for any
reason, we are unable to complete the audit or are unable to form or have not formed opinions,
we may decline to express opinions or issue reports, or may withdraw from this engagement.
Audit Procedures — General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements; therefore, our audit will involve judgment about the number of
transactions to be examined and the areas to be tested. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements. We will plan and perform the audit to obtain reasonable rather than absolute
assurance about whether the financial statements are free of material misstatement, whether from
(1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of
laws or governmental regulations that are attributable to the City or to acts by management or
employees acting on behalf of the City. Because the determination of waste and abuse is
subjective, Government Auditing Standards do not expect auditors to provide reasonable
assurance of detecting waste and abuse.
Because of the inherent limitations of an audit, combined with the inherent limitation of internal
control, and because we will not perform a detailed examination of all transactions, an
unavoidable risk that some material misstatements or noncompliance may exist and not be
detected by us, even though the audit is properly planned and performed in accordance with U.S.
City of Sunny Isles Beach, Florida
April 12, 2022
Page 4
generally accepted auditing standards and Government Auditing Standards. In addition, an audit
is not designed to detect immaterial misstatements or violations of laws or governmental
regulations that do not have a direct and material effect on the financial statements or major
programs. However, we will inform the appropriate level of management of any material errors,
any fraudulent financial reporting, or misappropriation of assets that come to our attention. We
will also inform the appropriate level of management of any violations of laws or governmental
regulations that come to our attention, unless clearly inconsequential and of any material waste
and abuse that comes to our attention. We will include such matters in the reports required for a
Single Audit. Our responsibility as auditors is limited to the period covered by our audit and
does not extend to any later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded
in the accounts, and may include tests of the physical existence of inventories, and direct
confirmation of receivables and certain other assets and liabilities by correspondence with
selected individuals, funding sources, creditors, and financial institutions. We will request
written representations from your attorneys as part of the engagement, and they may bill you for
responding to this inquiry. At the conclusion of our audit, we will require certain written
representations from you about your responsibilities for the financial statements; schedule of
expenditures of federal awards and state financial assistance, if applicable; federal award
programs and state projects, if applicable; compliance with laws, regulations, contracts, and grant
agreements; and other responsibilities required by generally accepted auditing standards and
Government Auditing Standards.
Audit Procedures - Internal Controls
Our audit will include obtaining an understanding of the entity and its environment, including
internal control, sufficient to assess the risks of material misstatement of the basic financial
statements and to design the nature, timing, and extent of further audit procedures. Tests of
controls may be performed to test the effectiveness of certain controls that we consider relevant
to preventing and detecting misstatements errors and fraud that are material to the financial
statements and to preventing and detecting misstatements resulting from illegal acts and other
noncompliance matters that have a direct and material effect on the financial statements. Our
tests, if performed, will be less in scope than would be necessary to render an opinion on internal
control and, accordingly, no opinion will be expressed in our report on internal control issued
pursuant to Government Auditing Standards.
As required by the Uniform Guidance, Florida Single Audit Act and Chapter 10.550, Rules of
the Auditor General, we will perform tests of controls over compliance to evaluate the
effectiveness of the design and operation of controls that we consider relevant to preventing or
detecting material noncompliance with compliance requirements applicable to each major federal
program and state project award. However, our tests will be less in scope than would be
necessary to render an opinion on those controls and, accordingly, no opinion will be expressed
in our report on internal control issued pursuant to the Uniform Guidance and Chapter 10, 550,
Rules of the Auditor General.
City of Sunny Isles Beach, Florida
April 12, 2022
Page 5
An audit is not designed to provide assurance on internal control or to identify significant
deficiencies or material weaknesses. Accordingly, we express no such opinion. However,
during the audit, we will communicate to management and those charged with governance
internal control related matters that are required to be communicated under AICPA professional
standards, Government Auditing Standards, and the Uniform Guidance, Florida Single Audit Act
and Chapter 10.550, Rules of the Auditor General.
Audit Procedures - Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of
material misstatement, we will perform tests of the City's compliance with provision of
applicable laws, regulations, contracts, agreements, and grants. However, the objective of those
procedures will not be to provide an opinion on overall compliance and we will not express such
an opinion in our report on compliance issued pursuant to Government Auditing Standards.
Uniform Guidance, Florida Single Audit Act and Chapter 10.550, Rules of the Auditor General,
requires that we also plan and perform the audit to obtain reasonable assurance about whether the
auditee has complied with applicable laws, regulations, and the terms and conditions provisions
of contracts and grant agreements applicable to major programs/projects. Our procedures will
consist of tests of transactions and other applicable procedures described in the OMB
Compliance Supplement and Chapter 10.550, Rules of the Auditor General, for the types of
compliance requirements that could have a direct and material effect on each of City's major
programs and major projects. The purpose of these procedures will be to express an opinion on
City's compliance with requirements applicable to each of its major programs or major projects
in our report on compliance issued pursuant to the Uniform Guidance, Florida Single Audit Act
and Chapter 10.550, Rules of the Auditor General.
Management'Responsibilities
Management is responsible for (1) establishing and maintaining effective internal controls,
including internal controls over compliance, and for evaluating and monitoring ongoing activities;
to help ensure that appropriate goals and objectives are met; (2) following laws and regulations;
(3) ensuring that there is reasonable assurance that government programs are administered in
compliance with compliance requirements; and (4) ensuring that management and financial
information is reliable and properly reported. Management is also responsible for implementing
systems designed to achieve compliance with applicable laws, regulations, contracts, and grant
agreements. You are also responsible for the selection and application of accounting principles;
for the preparation and fair presentation of the financial statements, schedule of expenditures of
federal awards and state financial assistance, and all accompanying information in conformity
with U.S. generally accepted accounting principles; and for compliance with applicable laws and
regulations and the provisions of contracts and grant agreements.
Management is also responsible for making all financial records and related information
available to us and for the accuracy and completeness of that information. You are also
responsible for providing us with (1) access to all information of which you are aware that is
relevant to the preparation and fair presentation of the financial statements, (2) additional
City of Sunny Isles Beach, Florida
April 12, 2022
Page 6
information that we may request for the purpose of the audit, and (3) unrestricted access to
persons within the government from whom we determine it necessary to obtain audit evidence.
Your responsibilities also include identifying significant contractor relationships in which the
contractor has responsibility for program compliance and for the accuracy and completeness of
that information. Your responsibilities include adjusting the basic financial statements to correct
material misstatements and confirming to us in the management representation letter that the
effects of any uncorrected misstatements aggregated by us during the current engagement and
pertaining to the latest period presented are immaterial, both individually and in the aggregate, to
the financial statements taken as a whole.
You are responsible for the design and implementation of programs and controls to prevent and
detect fraud, and for informing us about all known or suspected fraud affecting the government
involving (1) management, (2) employees who have significant roles in internal control, and (3)
others where the fraud or illegal acts could have a material effect on the financial statements.
Your responsibilities include informing us of your knowledge of any allegations of fraud or
suspected fraud affecting the City received in communications from employees, former
employees, grantors, regulators, or others. In addition, you are responsible for identifying and
ensuring that the City complies with applicable laws, regulations, contracts, agreements, and
grants. Management is also responsible for taking timely and appropriate steps to remedy fraud
and noncompliance with provisions of laws, regulations, contracts, and grant agreements, or
abuse that we report. Additionally, as required by the Uniform Guidance, Florida Single Audit
Act and Chapter 10.550, Rules of the Auditor General, it is management's responsibility to
follow up and take corrective action on reported audit findings and to prepare a summary
schedule of prior audit findings and a corrective action plan.
You are responsible for identifying all federal awards and state financial assistance, if applicable,
received and understanding and complying with the compliance requirements and for the
preparation of the schedule of expenditures of federal awards and state financial assistance
(including notes and noncash assistance) in conformity with the Uniform Guidance, Florida
Single Audit Act and Chapter 10.550, Rules of the Auditor General. You agree to include our
report on the schedule of expenditures of federal awards and state financial assistance in any
document that contains and indicates that we have reported on the schedule of expenditures of
federal awards and state financial assistance. You also agree to include the audited financial
statements with any presentation of the schedule of expenditures of federal awards and state
financial assistance that includes our report thereon OR make the audited financial statements
readily available to intended users of the schedule of expenditures of federal awards and state
financial assistance no later than the date the schedule of expenditures of federal awards and
state financial assistance is issued with our report thereon. Your responsibilities include
acknowledging to us in the written representation letter that (1) you are responsible for
presentation of the schedule of expenditures of federal awards and state financial assistance in
accordance with the Uniform Guidance, Florida Single Audit Act and Chapter 10.550, Rules of
the Auditor General; (2) you believe the schedule of expenditures of federal awards and state
financial assistance, including its form and content, is fairly presented in accordance with
Uniform Guidance, Florida Single Audit Act and Chapter 10.550, Rules of the Auditor General;
(3) the methods of measurement or presentation have not changed from those used in the prior
City of Sunny Isles Beach, Florida
April 12, 2022
Page 7
period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us
any significant assumptions or interpretations underlying the measurement or presentation of the
schedule of expenditures of federal awards and state financial assistance.
You are also responsible for the preparation of the other supplementary information which we
have been engaged to report on, in conformity with U.S. generally accepted accounting
principles. You agree to include our report on the supplementary information in any document
that contains and indicates that we have reported on the supplementary information. You also
agree to include the audited financial statements with any presentation of the supplementary
information that includes our report thereon OR make the audited financial statements readily
available to users of the supplementary information no later than the date the supplementary
information is issued with our report thereon. Your responsibilities include acknowledging to us
in the written representation letter that (1) you are responsible for presentation of the
supplementary information in accordance with GAAP; (2) you believe the supplementary
information, including its form and content, is fairly presented in accordance with GAAP; (3) the
methods of measurement or presentation have not changed from those used in the prior period
(or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any
significant assumptions or interpretations underlying the measurement or presentation of the
supplementary information.
At the conclusion of the engagement, you will populate the Data Collection Form and complete
the appropriate sections of the Data Collection Form that summarizes our audit findings. It is
management's responsibility to submit the reporting package (including financial statements,
schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors'
reports, and corrective action plan) along with the Data Collection Form to the federal audit
clearinghouse. We will coordinate with you the electronic submission and certification. If
applicable, we will provide copies of our report for you to include with the reporting package
you will submit to pass-through entities, if requested. The Data Collection Form and the
reporting package must be submitted within the earlier of 30 days after receipt of the auditors'
reports or nine months after the end of the audit period, unless a longer period is agreed to in
advance by the cognizant or oversight agency for audits.
Management is responsible for establishing and maintaining a process for tracking the status of
audit findings and recommendations. Management is also responsible for identifying and
providing report copies of previous financial audits, attestation engagements, performance audits,
or other studies related to the objectives discussed in the Audit Objectives section of this letter.
This responsibility includes relaying to us corrective actions taken to address significant findings
and recommendations resulting from those audits, attestation engagements, performance audits,
or studies. You are also responsible for providing management's views on our current findings,
conclusions, and recommendations, as well as your planned corrective actions, for the report, and
for the timing and format for providing that information.
You agree to assume all management responsibilities relating to the financial statements, related
notes, and any other nonaudit/nonattest services we provide. These nonaudit/nonattest services
do not constitute an audit under Government Auditing Standards and such services will not be
conducted in accordance with Government Auditing Standards. We will perform these services
City of Sunny Isles Beach, Florida
April 12, 2022
Page 8
in accordance with applicable professional standards. You will be required to acknowledge in
the management representation letter our assistance with preparation of the financial statements
and that you have reviewed and approved the financial statements and related notes prior to their
issuance and have accepted responsibility for them. Further, you agree to oversee the
nonaudit/nonattest services by designating an individual, preferably from senior management,
with suitable skill, knowledge, or experience; evaluate the adequacy and results of those services;
and accept responsibility for them. Professional standards prohibit us from being the sole host
and/or the sole storage for your financial and non-financial data. As such, it is your
responsibility to maintain your original data and records and we cannot be responsible to
maintain such original information. If you are missing any documents or work papers from our
prior years' engagements (if applicable), it is your responsibility to inform us. By signing this
engagement letter you affirm that you have all the data and records required to make your books
and records complete.
For the City's financial statements, we will provide copies of our reports to the Honorable Mayor,
City Commission, City Manager and the Finance Director. Unless restricted by law or regulation,
or containing privileged and confidential information, copies of our reports are to be made
available for public inspection.
With regard to the electronic dissemination of audited financial statements, including financial
statements published electronically on your website, you understand that electronic sites are a
means to distribute information and, therefore, we are not required to read the information
contained in these sites or to consider the consistency of other information in the electronic site
with the original document.
Communication with. Those Charged with Governance
As part of our engagement, we are responsible for communicating significant matters related to
the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the
financial reporting process as well as other matters we believe should be communicated to those
charged with governance. Generally accepted auditing standards do not require the auditor to
design procedures for the purpose of identifying other matters to communicate with those
charged with governance. Such matters include, but are not limited to, (1) the initial selection of
and changes in significant accounting policies and their application; (2) the process used by
management in formulating particularly sensitive accounting estimates and the basis for our
conclusions regarding the reasonableness of those estimates; (3) all passed audit adjustments; (4)
any disagreements with management, whether or not satisfactorily resolved, about matters that
individually or in the aggregate could be significant to the financial statements or our report; (5)
our views about matters that were the subject of management's consultation with other
accountants about auditing and accounting matters; (6) major issues that were discussed with
management in connection with the retention of our services, including, among other matters,
any discussions regarding the application of accounting principles and auditing standards; (7)
serious difficulties that we encountered in dealing with management related to the performance
of the audit; and (8) matters relating to our independence as your auditors.
City of Sunny Isles Beach, Florida
April 12, 2022
Page 9
Reproduction of Auditors' Report
If you intend to publish or otherwise reproduce the financial statements and make reference to
our Firm, you agree to provide us with printers' proofs or masters for our review and approval
before printing. You also agree to provide us with a copy of the final reproduced material for
our approval before it is distributed. In addition, to avoid unnecessary delay or
misunderstanding, it is important that you give us timely notice of your intention to issue any
such document.
With regard to the electronic dissemination of the City's annual or interim financial statements,
including financial statements published electronically on the City's website, we are not required
to read the information contained in those sites or to consider the consistency of other
information in the electronic site with the original document.
If the City elects to issue public debt and not have us associated with the proposed offering, we
agree that our association with the proposed offering is not necessary providing that the City
agrees to clearly indicate that we are not associated with the contents of any such official
statement or memorandum. The City agrees that the following disclosure will be prominently
displayed in any such official statement or memorandum.
Marcum LLP has not been engaged to perform, and has not performed, since the date of
its report included herein, any procedures on the financial statements addressed in that
report. Marcum LLP, also has not performed any procedures relating to this official
statement.
Assistance By Your Personnel
We will ask that your personnel, to the extent possible, prepare required schedules and analyses,
and make selected invoices and other required documents available to our staff. This assistance
by your personnel will serve to facilitate the progress of our work and minimize our time
requirements.
You acknowledge that your confidential information may be transmitted to us through an
information portal or delivery system established by us or on our behalf. You shall notify us in
writing of your employees, representatives, or other agents to be provided access to such portal
or system; upon the termination of such status, you shall immediately notify us in writing. You
acknowledge that you are responsible for the actions of your current and former employees,
representatives, or other agents in connection with the transmission of your information.
Background Checks
As a matter of Firm policy, we may perform background checks, which may require out-of-
pocket expenses, on potential clients and/or on existing clients, on an as -determined basis. The
terms and conditions of this engagement are expressly contingent upon the satisfactory
completion of our investigatory procedures and we reserve the right to withdraw from any
relationship should information which we deem to be adverse come to our attention. The results
City of Sunny Isles Beach, Florida
April 12, 2022
Page 10
of all background checks and other investigatory procedures are submitted to, and reviewed by,
our Firm's Client Acceptance Committee.
Predecessor Auditor
Before formally accepting this engagement, we are required by auditing standards generally
accepted in the United States of America to make certain communications with your predecessor
auditor. Soon after our appointment as your new auditors, we will request your permission to
contact your predecessor auditor, and they will require your authorization to respond fully to our
inquiries and to provide us with copies of certain of their working papers. Our continued
acceptance of this engagement is subject to the results of such communication. We will notify
you immediately if we become aware of anything from your predecessor auditor that results in
our not being able to continue this engagement and requiring us to resign from this engagement.
Independence
Professional standards require that a firm and its members maintain independence throughout the
duration of the professional relationship with a client. In order to preserve the integrity of our
relationship, no offer of employment shall be discussed with any Marcum professionals assigned
to the audit, including within the one year period prior to the commencement of the year-end
audit. Pursuant to professional standards, should such an offer of employment be made, or
employment commences during the indicated time period, we will consider this an indication
that our independence has been compromised. As such, we may be required to recall our
auditors' report due to our lack of independence. In the event additional work is required to
satisfy independence requirements, such work will be billed at our standard hourly rates.
Confidentiality/Access to Working Papers
To the extent that, in connection with this engagement, Marcum comes into possession of your
proprietary or confidential information, Marcum will not, except as described herein, disclose
such information to any third party without consent, except (a) as may be required by law,
regulation, judicial or administrative process, or in accordance with applicable professional
standards, or in connection with litigation pertaining to the subject matter of this engagement
letter, or (b) to the extent such information (i) shall have otherwise become publicly available
(including, without limitation, any information filed with any governmental agency and available
to the public) other than as the result of a disclosure by Marcum in breach hereof, (ii) is disclosed
by you to a third party without substantially the same restrictions as set forth herein, (iii)
becomes available to Marcum on a non -confidential basis from a source other than you, your
employees or agents which Marcum believes is not prohibited from disclosing such information
to Marcum by obligation to you, (iv) is known by Marcum prior to its receipt from you, your
employees or agents without any obligation of confidentiality with respect thereto, or (v) is
developed by Marcum independently of any disclosures made by you or your employees or
agents to Marcum of such information. You authorize Marcum to participate in discussions with
and to disclose your information to your agents, representatives, administrators or professional
advisors (including accountants, attorneys, financial and other professional advisors), their
respective officers, directors or employees, and other parties as you may direct. In addition, you
City of Sunny Isles Beach, Florida
April 12, 2022
Page 11
acknowledge and agree that any such information that comes to the attention of Marcum in the
course of performing this engagement may be considered and used by Marcum in the context of
responding to its professional obligations as your independent accountants.
The working papers prepared in conjunction with our engagement are the property of Marcum
and constitute confidential information subject to the Public Records Laws of the Florida
Statutes. These working papers will be retained by us in accordance with applicable laws and
with our Firm's policies and procedures. However, we may be required, by law or regulation, to
make certain working papers available to regulatory authorities for their review, and upon
request, we may be required to provide such authorities with photocopies of selected working
papers.
The Firm is required to undergo a "Peer Review" every three years. During the course of a Peer
Review engagement, selected working papers and financial reports, on a sample basis, will be
inspected by an outside party on a confidential basis. Consequently, the accounting and/or
auditing work we performed for you may be selected. Your signing this letter represents your
acknowledgement and permission to allow such access should your engagement be selected for
review.
As a result of our prior or future services to you, we may be required or requested to provide
information or documents to you or a third -party in connection with a legal or administrative
proceeding (including a grand jury investigation) in which we are not a party. If this occurs, we
shall be entitled to compensation for our time and reimbursement for our reasonable out-of-
pocket expenditures (including legal fees) in complying with such request or demand. This is
not intended, however, to relieve us of our duty to observe the confidentiality requirements of
our profession.
Third -Party Service Providers
Marcum may use the services to its affiliates, subsidiaries and/or third parties, (e.g.
Confirmation.com and Bloomberg Professional Services) including contractors and
subcontractors, in each case within or outside of the United States in connection with the
provision of services and/or for internal, administrative and/or regulatory compliance purposes.
You agree that Marcum may provide confidential and other information Marcum receives in
connection with this agreement to Subcontractors for such purposes. Marcum maintains internal
policies, procedures and safeguards to protect the confidentiality of your information and
Marcum will remain responsible for the work performed by such Subcontractors.
Right to Terminate
The terms and provisions of this engagement letter, any course of conduct, course of dealing
and/or action of the Firm and/or the Organization and our relationship with you shall be
governed by the laws of the State of Florida to the extent said laws are not inconsistent with the
Federal Securities Laws and Rules, Regulations and Standards thereunder. We acknowledge
your right to terminate our services at any time, and you acknowledge our right to resign at any
time (including instances where in our judgment, our independence has been impaired or we can
City of Sunny Isles Beach, Florida
April 12, 2022
Page 12
no longer rely on the integrity of management), subject in either case to our right to payment for
all direct and indirect charges including out-of-pocket expenses incurred through the date of
termination or resignation or thereafter as circumstances and this agreement may require, plus
applicable interest, costs, fees and attorneys' fees.
LIMITATION OF LIABILITY
No action, regardless of form, arising out of the services under this agreement may be brought by
either party more than one year after the date of the last services provided under this agreement.
The City hereby indemnifies Marcum and its partners, principals, and employees, and holds them
harmless from all claims, liabilities, losses, and costs arising in circumstances where there has
been a known and intentional misrepresentation by a member of the City's management,
regardless of whether such person was acting in the City's interest. This indemnification will
survive termination of this letter of engagement.
Nothing contained in this Attachment "E" is in any way intended to be a waiver of the limitation
placed upon the City's liability as set forth in Chapter 768, Florida Statutes. Additionally, the
City does not waive sovereign immunity.
Other Services
We will perform, in accordance with Chapter 10.550, Rules of the Auditor General of the State
of Florida, an examination pursuant to AICPA Professional Standards, promulgated by the
American Institute of Certified Public Accountants regarding the compliance of the City's with
218.415, Florida Statutes, Local Government Investment Policies. There is no additional cost for
this service.
We are always available to meet with you and/or other management personnel at various times
throughout the year to discuss current business, operational, accounting and auditing matters
affecting your Organization. Whenever you feel such meetings are desirable please let us know;
we are prepared to provide services to assist you in any of these areas. We will be pleased, at
your request to attend your Commission meetings.
Timeline
Marcum's engagement ends on the earlier of termination (including without limitation, our
resignation or declining to issue a report or other work product) or Marcum's delivery of its
report. Any follow-up services that might be required will be a separate, new engagement. The
terms and conditions of that new engagement will be governed by a new, specific engagement
letter for that service.
City of Sunny Isles Beach, Florida
April 12, 2022
Page 13
Circumstances. Affecting Timing and Fee. Estimate
Circumstances may arise during the engagement that may significantly affect the targeted
completion dates and our cost proposal. If any additional fees are necessary they will be
discussed with you prior to incurring any additional costs. Additional services provided beyond
the described scope of services will be billed separately. As a result, additional fees may be
necessary. Such circumstances include but are not limited to the following:
Changes to the timing of the engagement at your request. Changes to the timing of the
engagement usually require reassignment of personnel used by Marcum in the performance
of services hereunder. However, because it is often difficult to reassign individuals to other
engagements, Marcum may incur significant unanticipated costs.
All requested schedules are not (a) provided by the accounting personnel on the date
requested, (b) completed in a format acceptable to Marcum (c) mathematically correct, or
(d) in agreement with the appropriate underlying records (e.g., general ledger accounts).
Marcum will provide the accounting personnel with a separate listing of required schedules
and deadlines.
3. Weaknesses in the internal control and/or a significant level of proposed audit adjustments
are identified during our audit.
Significant new issues or unforeseen circumstances as follows: (a) New accounting issues
that require an unusual amount of time to resolve, (b) Changes or transactions that occur
prior to the issuance of our report, (c) Changes in auditing requirements set by regulators.
5. Significant delays in the accounting personnel's assistance in the engagement or delays by
them in reconciling variances as requested by Marcum. All invoices, contracts and other
documents which we will identify for the Organization, are not located by the accounting
personnel or made ready for our easy access.
Changes in audit scope caused by events that are beyond our control.
Agreement
If any provision of this letter is determined to be unenforceable, all other provisions shall remain
in force.
It is hereby understood and agreed that this engagement is being undertaken solely for the benefit
of the City and that no other person or entity shall be authorized to enforce the terms of this
engagement. The undersigned represents and warrants that it has the requisite authority and
consents to enter into and perform this Agreement and the obligations herein for and on behalf of
City.
City of Sunny Isles Beach, Florida
April 12, 2022
Page 14
Our acceptance of this engagement is subject to the review and approval of our Firm's client
acceptance committee. If our client acceptance committee decides not to accept this engagement
for any reason, then we will inform you immediately in writing.
Moises D. Ariza, CPA, CGMA, is the Engagement Partner and is responsible for supervising the
engagement and signing the report or authorizing another individual to sign it.
This agreement is renewable at the option of the City. We appreciate the opportunity to be of
service to the City of Sunny Isles Beach, Florida, and believe this letter accurately summarizes
the significant terms of our engagement. If you have any questions, please let us know.
Very truly yours,
Marcum LLP
Moises D. Ariz , CPA, CGMA
Partner
y� ]i FLO4 y
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
(305) 947-0606 City Hall
(305) 949-3113 Fax
MEMORANDUM
TO: Honorable Mayor and City Commissioners
VIA: Stan Morris, City Manager
FROM: Tiffany D. Neely, Finance Director on behalf of Auditor Selection Committee
DATE: April 12, 2022
RE: Selection of External Auditor Pursuant to Section 218-391, Florida Statutes
Ranked Firms for Professional Auditing Services
RECOMMENDATION:
Staff is recommends approval of this Resolution.
REASONS:
Per Florida State Statutes, the City is required to have an annual financial audit of its accounts anc
records by an independent Certified Public Accountant. The City completed its most recent
independent audit agreement for a final term of six years with MSL, PA and went out to rebid for
professional auditing services.
Florida law requires the City to take the following steps to select an auditor: (1) City Commission must
establish an auditor selection committee; (2) the auditor selection committee must establish factors
to use for the evaluation of audit services to be provided by a certified public accounting firm; (3) the
auditor selection committee is required to provide interested firms with a request for proposal (RFP);
and (4) the auditor selection committee shall rank and recommend in order of preference three firms
deemed to be the most highly qualified to perform the required services. The City Commission can
authorize negotiation with the First Ranked firm. If negotiation fails, negotiations may occur with the
Second Ranked firm. All activities of the auditor selection committee are subject to the Sunshine Law.
The City Commission passed and adopted Resolution 2022-3293 on January 20, 2022 establishing ar
auditor selection committee comprised of Vice Mayor Jeniffer Viscarra, former Mayor Norman S
Edelcup, and former Vice Mayor Lewis J. Thaler. The committee issued RFP 22-02-01 for Professions
Auditing Services which was advertised on February 7, 2022.
Item Number: 10.13
On March 7, 2022, the City received three proposals. Pursuant to F.S. 218.391, the proposals were
reviewed by the auditor selection committee at a publicly noticed meeting on March 11, 2022. The
auditor selection committee's ranking of audit firms in order of preference, with number 1 being the
most qualified, are as follows:'
1. Marcum, LLP
2. Keefe McCullough
3. Caballero Fierman LLerena + Garcia LLP
Based on the above, the auditor selection committee requests that the City Commission approve the
attached resolution.
FUNDING SOURCE:
Funds have been appropriated in Account No. 001-2-5130-432000-00000 - Annual Operating Budget
Finance Department.
ATTACHMENTS:
Resolution
Item Number: 10.13