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Home My WebLink AboutGLSC & Co. --" I :1 I I I I I I 'I I I I I I I I I I 11 II llJOI::> I::> OlllIO 00";0 iFf:";~fr' Q3^ ORI611 ~\\L I I I I I I I I I I I I I I I I ~ I I PROPOSAL TO PROVIDE AUDITING SERVICES FOR THE CITY OF SUNNY ISLES BEACH MIAMI-DADE COUNTY, FLORIDA FOR THREE YEARS, WITH THE INITIAL FISCAL YEAR ENDING SEPTEMBER 30, 2010 WITH AN OPTION OF TWO ONE YEAR RENEWALS FOR A TOTAL OF A FIVE YEAR TERM RFP No. 10-06-01 DUE: 10:00 a.m., on Tuesday, July 13, 2010 ..... \ GLSC & COMPANY, PLLC certified pu.bli(.~ accountants -- -~ Contact Persons: Pablo R. Llerena, CPA -lIerena@Qlsccpa.com Manuel M. Garcia, CPA - mmQarcia@alsccpa.com 6303 Blue Lagoon Drive, Suite 200 Miami, Florida 33126-6205 Telephone: (305) 373-0123 Fax: (305) 374-4415 I II I I I I I I I I I I I I I I ~ II I CITY OF SUNNY ISLES BEACH, FLORIDA T ABLE OF CONTENTS PAGE EXECUTIVE SUMMARY I TRANSMITTAL LETTER ............................................................................... 1-2 TECHNICAL PROPOSAL GEN ERAL REQU I REMENTS ........................................................................................................... 3 INDEPEN DENCE .... ........... ........... ................... ................... ............. ..................... ............................ 3 LICENSE TO PRACTICE IN FLORIDA............................................................................................. 3 FIRM QUALI FICA TIONS AN D EXPERI ENCE ................. ............................. ...................... ........... 3-4 PARTNER, SUPERVISOR, AND STAFF QUALIFICATION AND EXPERIENCE......................... 4-8 PRIOR ENGAGEMENT WITH THE CITY OF SUNNY ISLES BEACH ............................................ 8 SIMILAR ENGAGEMENT WITH OTHER GOVERNMENT ENTITIES ............................................. 9 SP ECI FIC AU D IT AP P ROACH.................................................................................................. 10-15 IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT PROBLEMS....................................... 15 CONCLUSION ...................................... ................................................................................................. 16 ATTACHMENT "A" SCHEDULE OF PROFESSIONAL FEES AND EXPENSES ATTACHMENT "B" PUBLIC ENTITY CRIME AFFIDAVIT ATTACHMENT "C" NON-COLLUSIVE AFFIDAVIT APPENDIX I APPENDIX" APPENDIX '" LICENSE TO PRACTICE IN FLORIDA QUALITY CONTROL REVIEW CERTIFICATE OF INSURANCE J GLSC ~,SZ~~~,~;;.:~~~ ~ I I I I I I I I I I I I I I I Ii I :1 I D I ... '" 6303 Blue Lagoon Drive. Suite 200 Miami, Florida 33126-6025 (305) 373-0123. (800) 330-4728 Fax (305) 374-4415 www.qlsccpa.com \ GLSC & COMPANY, PLLC , certified public accountants -- July 12, 2010 Jane A. Hines, CMC, City Clerk City of Sunny Isles Beach Governmental Center 18070 Collins Avenue First Floor Meeting Room Sunny Isles Beach, FL 33160 GLSC & Company, PLLC ("GLSC") appreciates the opportunity to respond to the City of Sunny Isles Beach ("The City"), Florida, Request for Proposals for Professional Auditing Services RFP No. 10-06-01 to audit its Financial Statements for three years, with the initial fiscal year ending September 30, 2010 with an option of two one year renewals for a total of a five year term. GLSC fully understands the scope of the professional services and work products requested in this RFQ. Our audit will follow auditing standards generally accepted in the U.S. of America, Generally Accepted Government Auditing Standards, issued by the Comptroller General of the United States, provisions of the Federal Single Audit Act Amendments of 1996, and the U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and Local Governments, provisions of the Florida Single Audit Act, and Chapter 10.550, Rules of the Auditor General of the State of Florida. Our audit will include procedures to determine whether the operations of the City are properly conducted in accordance with legal, regulatory, grant and contractual requirements, including Florida Statutes, Federal Laws and the City Commission's policies and procedures. We will deliver our reports in accordance with those and your requirements. GLSC is a medium-size South Florida professional Limited Liability Company licensed Certified Public Accounting firm based in Miami and have provided auditing services in South Florida for the past 30 years. GLSC is a member of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. Last year, GLSC performed approximately 40 audits under Governmental Auditing Standards, including 25 Single Audits in excess of 9,000 hours of services for our governmental and nonprofit clients. GLSC currently provides governmental auditing / accounting services to over 30 Public Sector Client. GLSC can assure the highest professional qualifications of the staff we will utilize for this engagement. In addition to our governmental focus, it is GLSC's policy that all professional employees earn more than the minimum CPE credits required for governmental audits. , GLSC & COMPANY, PLLC , -==. ("(rrijifJ public orc(Juntants _/ II 'I II I I City Clerk City of Sunny Isles Beach II I GLSC have assisted all of our past and present clients participating in the GFOA Certificate of Achievement for Excellence in Financial Reporting Program (CAFR) to qualify for this award. We are proud to state that all of the financial statements we have reported in the certificate program have been awarded with the Certificate. GLSC commits to provide special assistance to the City of Sunny Isles Beach to meet the requirements of that program. GLSC has an impeccable reputation. We have never been involved in any litigation, proceeding or disciplinary action or been charged with or convicted of a public entity crime I I The total all inclusive fees for our audit services will not exceed $50,000, $55,000 and $60,000 for the years ending September 30, 2010, 2011 and 2012, respectively, as fully itemized on attachment A of this proposal. GLSC commits to perform the audit within your specified time period. In addition, we will hold progress reports with the Finance Department personnel and keep them informed of any findings throughout the entire audit process. We will discuss all significant findings with the appropriate City's personnel. I I I :1 'I I 'I I I We certify this proposal is made without previous understanding, agreement or connection either with any previous firms or corporations offering a Proposal for the same audit or with the City. We also certify our proposal is in all respects fair, without outside control, collusion, fraud, or otherwise illegal action, and were prepared in good faith. Only the person(s), company or parties interested in the project as principals are named in the proposal. GLSC has no existing or potential conflicts of interest and anticipates no conflicts of interest during the engagement. This proposal is a firm and irrevocable offer for ninety (90) days. Pablo Llerena, CPA and Manuel M. Garcia, CPA, Partners, are authorized to make representations for and to bind the firm. They can be reached at (305) - 373-0123. Their e-mail addresses are lIerena@qlsccoa.com and mmqarcia@qlsccoa.com, respectively. Our Federal I.D Number is 20- 3157326. Please do not hesitate to call if you have any questions about the information provided in this package. Very truly yours, GLSC & Company, PLLC Q~ cR~ Pablo R. Llerena, CPA I ~ ~SC ~,SZ~~~,~;;.~~~~ I 2 I II !. I ~. 7l@@/}JlJilil@&JIJ !Pll@fJJ@@@//! I General Requirements I GLSC agrees to address all points outlined in your request for proposal and adhere to the instructions for preparing and submitting the proposal. I Independence I GLSC's partners and its employees are independent of the City of Sunny Isles Beach, Florida as defined by auditing standards generally accepted in the United States of America and the U.S. General Accountability office's Government Auditing Standards (GAS) I Our firm is also independent of the component unit of the city. Our firm have not had any business relationship with the city for the past five years. I License to Practice in Florida GLSC is a properly licensed State of Florida professional association, and our assigned key professional staff are qualified to perform governmental audits (ref. Appendix I). Firm Qualifications and Experience I I GLSC is an accounting firm (South Florida professional Limited Liability Company) pro-viding comprehensive financial and compliance auditing, attestation, accounting and other management consulting and tax services. I By focusing our expertise on governmental and non-for profit entities, we provide the highest level of financial and compliance auditing and consulting services to our Governmental and Non-for-Profit Sector Clients. I Last year, GLSC performed: I ~ In excess of 9,000 hours of services to our Public Sector Clients ~ 40 Audits under Governmental Auditing Standards (GAS) ~ 25 Single Audits I I I II I I~ Ii I .. ) ~LSC ~,S~~~~j~;:,,~,~~~ ,. -- The office of GLSC performing the audit is located at 6303 Blue Lagoon Drive, Suite 200; Miami Florida 33126-6025. 80% . GOVEFl'JMENTAL AUDITS .OTHERAUDlTS 20% STAFF GLSC has a total of 23 full-time employees, 20 professional staff, including 4 Partners and 14 professionals who specialize in providing auditing, accounting and consulting services to the Governmental and Non-for-Profit Sector. National Firm Resources with Local Firm Personalized Service Philosophv With the equally important goals of serving our clients' best interest while remaining locally owned and autonomous, our firm has chosen to be affiliated with BKR International. BKR International is an association of independent CPA firms that provides a worldwide network of accounting and business advisors from 135 accounting firms in 70 countries. This affiliation gives us access to 56 CPA firms in the United States with expertise in governmental accounting, auditing and information technology. Qualitv Control and Confidentialitv GLSC participates in an external quality review program requiring an on-site independent examination of our accounting and auditing practice. GLSC has consistently received an unqualified opinion on the quality of our audit practice, including our firm's last external quality control review (for the year ended June 30,2007). See copy of the report on the firm's most recent quality review in Appendix II. Note: our firm's quality control review included a review of specific governmental engagements. In addition to scheduled Peer Reviews, our firm continually monitors performance to ensure the highest quality of services. Under the supervision of the Audit Partners, an Audit Manager is responsible for monitoring quality control of all appropriate engagements. Results of State and Federal Reviews All state and federal reviews of the firm's reports and audit documentation have been accepted without change or revision to issued reports. 3 I I I :1 I. I I I I I I I I I I I I I . .. !l@@/}DlJiJO&wD 1fJ/l@(jJ@@&]/J (Continued) Firm Qualifications and Experience (Continued) . performing an overriding review of work papers; . resolving technical accounting and reporting issues; . reviewing, approving and signing reports, management letters, and other audit engagement products; . supervising staff; . ascertaining the City is pleased with all aspects of our engagement, such as services and the personnel assigned; . leading meetings and discussions with key management personnel; and . meeting with governing board to present audit reports. Compliance with Government Education ReQuirements In order to maintain our high level of technical competence, we provide continuing professional education programs for all partners and professional staff members which exceed national and state standards. All of the audit professionals of GLSC exceed the education requirements as set forth in Government Auditing Standards, published by the Comptroller General of the United States. Our continuing professional education programs ensure that all audit staff members meet the requirements to participate in audits of government agencies. Memberships PABLO R. LLERENA, CPA will be the Engagement Partner. Mr. Llerena has extensive experience in governmental audits, and has performed governmental audits for the last 28 years. He will devote a substantial part of his time to the completion of the work. * *** * * * **** * * ".** * * *""*1ll * * * *** * * * ***** * * **** * * **** * ** All of the firm's CPA's are members in good standing of both the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. In addition, certain firm professionals are members of the following professional groups: . Florida Government Finance Officers Association . Special Review Committee of the Government Finance Officers Association . BKR International Committee on Governmental and Non-Profit Accounting and Auditing AUDIT MANAGER The Audit Manager will be assigned full time and will work closely with the partners. He will be responsible for the overall review of the work and compliance with the firm's quality control standards and regulatory compliance requirements. He will ensure that the financial statements and all other reports are prepared in accordance with professional standards and firm policy. Partner, Supervisor and Staff Qualifications and Experience ENGAGEMENT PARTNER The engagement will be performed under the direct supervision of an Engagement Partner. The Engagement Partner has direct responsibility for engagement policy, direction, supervision, quality control, security and communication with City personnel. The Engagement Partner will be responsible for the quality control, supervision and confidentiality of information of the engagement and will participate extensively during the various stages of the engagement. He will attend meetings, respond to telephone calls and respond to specific inquiries on a day-to-day basis as primary point of contact. He will be responsible for all phases of the fieldwork and he will be: . supervising staff; planning the audit; preparing or modifying audit programs, as needed; evaluating the internal control of the computer department; evaluating internal control and assessing risk; reviewing audit documentation for compliance with audit requirements and completeness; communicating with the City and the partners the progress of the audit; and . . . . He will also be involved in: . coordinating all services to the City; · directing the development of the overall audit approach and plan; . . _) GLSC ~,S~~~~~.;;,,~~~~ 4 !. I I ~ V@@ilJJJD.iltgliJO [JJ!l@[jJ@@&JO 'I Partner, Supervisor and Staff Qualifications and Experience (Continued) I . reviewing financial statements and all reports issued by the firm for accuracy, completeness and they are prepared in accordance with professional standards and firm policy. I I WILBERT SANTOS will be the Audit Manager. Mr. Santos was selected because of his experience in governmental and public-sector audit engagements. He will devote 100% of his time to the completion of the work. He has performed public sector audits for 5 years. I * 1<.". *** 1<.". ****.... 1( 1< *** '" 1< * ***** 1<**** * *** *** * * **** 1< 1< **** * * * * SUPERVISOR/SENIOR ACCOUNT ANT I A Supervisor/Senior Accountant will be assigned full-time to the engagement. The Supervisor/Senior accountant will perform complex audit procedures and assist the Partners and Manager in the actual performance of the engagement. I ZSOL T CZIRA will be the Supervisor / Senior Accountant. Mr. Czira was selected because of his ability and experience performing governmental audit. He is well versed in the uniqueness of Governmental audits and will devote 100% of his time to the completion of the work. I I * 1( *** * * 1( *'*,* * * 10: *** * * * 11:*"'** * *** **.". *****"* 'f<( j:** "" 'k.". ** * * *k **'1\ CONCURRING REVIEW AND ADVISORY PARTNER I A Concurring Review and Advisory Partner will assist the Engagement Partner and be available as a sounding board to advice in those areas where problems are encountered. He will perform a second review of all reports to be issued by GLSC, and will also be available in those instances in which the Engagement Partner is not available. I I MANUEL M. GARCIA, CPA will be the Concurring Review and Advisory Partner. Mr. Garcia has been involved in performing governmental audits for 35 years, and is the Concurring Review and Advisory Partner of all the governmental audits of the firm. He is responsible for the firm-wide audit practice and the allocation of firm resources to meet the needs of clients. I I I I , ) ~C ~,S~~:~j~~~,,~~~~ -- I GLSC's AUDIT MANAGEMENT TEAM MEMBERS' YEARS OF GOVERNMENTAL AUDITING EXPERIENCE PABLO LLERENA, CPA (Engagement Partner): 28 YEARS OF TOTAL GOVERNMENTAL AUDITING EXPERIENCE MANUEL M. GARCIA, CPA (Concurring Partner): 35 YEARS OF TOTAL GOVERNMENTAL AUDITING EXPERIENCE WILBERT SANTOS - (Audit Manager): 5 YEARS OF TOTAL GOVERNMENTAL AUDITING EXPERIENCE AND A TOTAL OF 10 YEARS AUDITING EXPERIENCE. ZSOL T CZIRA - (Supervisor/Senior Accountant) 7 YEARS OF TOTAL GOVERNMENTAL AUDITING EXPERIENCE AND A TOTAL OF 10 YEARS AUDITING EXPERIENCE. 75TOTALYEARS,GOVERNMENTAL AUDITING EXPERIENCE GLSC's engagement team's workload is organized in such a way that additional activities brought about by this engagement will not impact our current commitments to our clients. We have sufficient staff capacity to integrate these professional services for the City into our present operations, while continuing to maintain the highest standards of quality and time lines for our clients. The Manager and Senior Accountant will devote all of their time to performing the City's audit engagement. 5 !. I I -~ !l@@!JfJ/Jil@&;/] [fJ[j@(j)@@&l!] (Continued) I Partner, Supervisory and Staff Qualifications and Experience (Continued) I Qualitv of the Staff over the Term of the Enqaqement I The Engagement Partner and Audit Manager will be designated "KEY" MEMBERS. We pledge to the City they will be returned to the audit each year of the engagement. In the unlikely event that it does become necessary to replace any of the Partners, Manager or Senior Accountant, we will first attain the City's express prior written permission to do so. We understand the City's right to accept or reject replacements. In addition to the engagement team members proposed herein, we also have other, well-qualified professionals who stand ready to serve the City's needs, if required. I I I GLSC can assure the highest professional qualifications of the staff we will utilize for the City's engagement. I In addition to our governmental focus, it is GLSC's policy that all professional employees earn more than the minimum CPE credits required for governmental audits. Further, because we are a growing firm, we have an ongoing recruitment program that seeks only those accountants with a proven record of academic success. When we recruit at the senior and manager level, we select accountants with proven govern-mental accounting and auditing experience. I I I PABLO R. LLERENA, CPA e-mail: lIerena@qlsccpa.com I Position Engagement Partner Education Bachelor Degree, Business Administration, 1980 Florida International University I Professional History I . CPA, in Florida since 1982, Certificate No. 10158 . Partner of GLSC and predecessor firms since 1995 . Audit manager, senior accountant and staff of GLSC and predecessor firms from 1983 to 1995 · Staff with local accounting firm, 1980 to 1982 I Clients Served I Mr. Llerena is the lead partner for all the governmental audits of the firm. A partial list of governmental and non- for-profit audit clients served follows: ,I I. I .J ~C ~,S~~~~,~.;;,,~~~~ · City of Oakland Park (5 years) . City of Tamarac (6 years) · City of Margate (3 years) · Town of Miami Lakes (7 years) · City of Pembroke Pines - Joint Venture (3 years) · City of Dania Beach (2 years) . City of Lauderdale Lakes (3 years) . City of Lauderhill (5 years) · City of Miami Springs (2 years) . Town of South Ranches (5 years) · City of South Miami (2 years) . North Broward Hospital District - Joint Venture ( 2 years) · Miami-Dade County School Board - Joint Venture (10 years) · Miami-Dade County - Joint Venture (5 years) Professional Education Educational courses taken during the last two (2) years. Course Government Accounting and Auditing Accounting and Auditing and other Hours 95 25 .12.Q Other Qualifications As a member of the Government Finance Officers Association Special Review Committee, Mr. Llerena has participated in the review process for awarding the GFOA Certificate of Achievement in Financial Reporting, and has reviewed over 40 reports during the past five years. In addition, Mr. Llerena was the team captain for the Quality Review of the Office of Management Audits of Miami-Dade County School Board. Professional Associations . Member, American Institute of Certified Public Accountants . Member, Florida Institute of Certified Public Accountants . Member, Florida Government Finance Officers Association . Member, Government Finance Officers Association . Member, Cuban American Certified Public Accountants Association * ** ** ** * ** ** ** * ** * * * * ** * * * * ** * ** * * * * ** ** * ** * * * * * * * ** * * 6 !I II I ,I II I II II !I II I II I il I II II I II ~ ff@@/}f}lilff@gJ/} [jJfl@(jJ@W/} Partner, Supervisory and Staff Qualifications and Experience (Continued) MANUEL M. GARCIA, CPA e-mail: mqarcia@qlsccpa.com Position Concurring/Advisory Partner Education Bachelor of Science, Majoring in Accounting, 1970, Florida Atlantic University Professional History · CPA, in Florida since 1976, Certificate No. 5784 · Partner of GLSC and predecessor firms since 1983 · Owner of local practice, 1975 to 1982 . Staff for national accounting firm, 1971 to 1974 Clients Served Mr. Garcia is the client service / advisory partner on several governmental audits. A partial list of governmental and non-for-profit audit clients served follows: . Town of Miami Lakes (5 years) . City of Miami Springs (2 years) . City of Lauderdale Lakes (3 years) · City of Oakland Park (3 years) . City of Tamarac (4 years) . City of Margate (3 years) · City of Dania Beach (2 years) . Miami-Dade County School Board - Joint Venture (10 years) . Downtown Development Authority of the City of Miami (9 years) . Housing Authority of the City of Miami Beach (5 years) . Broward County Housing Authority (4 years) · Cuban American National Council (15 years) . Little Havana Activities and Nutrition Centers (7 years) . Youth Co-Op (2 years) . Peninsula Housing Projects (10 years) . Broward County School Board - Joint Venture (2 years) Professional Education Course Government Accounting and Auditing Accounting and Auditing and other Hours 80 30 llQ Professional Associations . Member, American Institute of Certified Public Accountants · Member, Florida Institute of Certified Public Accountants . Member, Cuban American Certified Public Accountants Association . Member, Association of Certified Fraud Examiners · Ex-member and former Chairman of the Board of Governors of the Florida Joint Underwriters Association · Ex-member of the Audit Committee of Miami-Dade County School Board . Ex-Chairman of the Audit Committee of the City of Miami ** ** ** * ** * * * ** * * * * * ** * * * * ** ** ** * * * * * * * ** * * WILBERT SANTOS- e-mail: wsantos@qlsccpa.com Position Audit Manager Education Bachelors of Science, Accounting, 1994, Angeles University Foundation Professional History CPA licensed by the State of California. Senior Accountant to Manager of GLSC since 2004 5-years experience from Staff to Senior Accountant level Pricewaterhouse Coopers Clients Served A partial list of governmental and non-for-profit audit clients served follows: City of Tamarac - (5 years) City of Margate - (3 years) Town of Miami Lakes - (5 years) City of Lauderhill- (2years) City of Oakland Park - (1 year) Cuban American National Council- (4 years) Little Havana Activities and Nutrition Centers - (2 years) Peninsula Housing Projects - (5 years) Broward County School Board - Joint Venture (2 years) I _) ~SC ~,S~~:~,~~;,,~~~~ I 7 I iiiI I m fJtJ Qw {j' fA @&J/J 'to r - . '. ..' . : . . c7 '.' ~"". (j) @. @, . c7 . r ., @)@ ~ JJilfl@&J If fl@[fJ@ ~ . .1 (Continued) I Partner, Supervisory and Staff Qualifications and Experience (Continued) I Continuing Professional Education I Course Accounting and Auditing and other Hours ill Professional and Business Affiliations I Associate, American Institute of Certificate Public Accountant Associate, Florida Institute of Certificate Public Accountant I * ttt** * * ttt** * ttt********* * * * * * ttt******** * * * * * * * * * * *tt**** ttt* ZSOL T CZIRA . e-mail: zsolt@qlsccpa.com I Position Senior Accountant I Education Bachelor Degree, Accounting, 1999, Florida International University I Professional History CPA licensed by the State of Virginia. Senior Accountant since 2004 Staff Accountant of GLSC and predecessor firms from 2003 to 2004 Staff of local CPA firm 2000 to 2002 I I Clients Served A partial list of governmental and non-for-profit audit clients served follows: I Town of Southwest Ranches (4 years) City of Oakland Park (1 year) City of Dania Beach (2 years) City of Tamarac (1 year) City of Margate (1 year) City of Miami Springs (1 year) Hialeah Housing Authority (1 year) Miami Beach Housing Authority (2 years) Miami-Dade County Public School Board- Impact Fee Fund (1 year) Downtown Development Authority of the City of Miami (2 years) Peninsula Housing Projects (2 years) Youth Co-Op (2 years) Florida Immigrant Advocacy Center (1 year) Tampa Housing Authority (2 years) School Board of Palm Beach County (1 year) I I I I I ", .J ~C ~<S~~:~;~~~E~~~ . Continuing Professional Education Course Accounting and Auditing and other Hours 100 Professional Associations Member, Florida Institute of Certified Public Accountants ************************************************************ TRAINING COURSES Professional Staff Traininq Partners - All of our Partners are CPA's and have in excess of 28 years of diversified public accounting experience. They are responsible for overall engagement performance, policy, direction and quality control. They have far exceeded minimum CPE requirements. Manaqers - All of our Audit Managers have a minimum of 10 years of diversified public accounting experience. They have demonstrated ability to plan audit engagements, supervise personnel and maintain frequent contact with clients. They continually upgrade their skills through the firm's continuing education programs and courses sponsored by the AICPA, FICPA and GFOA. They have far exceeded minimum CPE requirements. Senior Accountants - All of our Senior Accountants have a minimum of 4 years of diversified public accounting experience. They perform audits, evaluate staff, review findings and prepare audit reports. They posses the potential for upward mobility. They have far exceeded minimum CPE requirements. Prior Engagement with the City of Sunny Isles Beach. GLSC has never performed any professional services for the City of Sunny Isles Beach, or any component units thereof. 8 I I 1l@@!JJ/JDi]&&1{) [fJfl@(fJ@@ffJ/J (Continued) I Similar Engagements with Other Government Entities I We have included below, ranked in total staff hours, five municipal audit engagements requiring compliance with laws, regulations, contracts and grants; follow fund accounting requirements; have capital projects, financing requirements, enterprise funds, pension trusts and Single Audits which we believe are similar to the City of Sunny Isles Beach. I I CLIENT INFORMATION "C Q) > ... Q) en I1J ... III Q) > I1J ... :J o ::r: I .~ "C :J ~ City of Tamarac (GFOA Certificate) I CAFR, Financial Audit, Governmental Audit, Federal and State Single Audit, Utility Audit Years Served: Since 2002 Contact: Jeffrey Miller, City Manager, (954) 597-3500 Partners: Pablo R. Llerena Manuel Garcia City of Margate (GFOA Certificate) 6 700 I I CAFR, Financial Audit, Governmental Audit, Federal and State Single Audit Years Served: Since 2006 Contact: Gail P. Gargano, (954) 935-5353 Partners: Pablo R. Llerena Manuel Garcia Town of Miami Lakes 3 700 I I Financial Audit, Governmental Audit Years Served: Since 2001 Contact: Joyce Norris, Accountant, (305) 364-6100 Partners: Pablo R. Llerena Manuel Garcia City of Pembroke Pines - (GFOA Certificate) (Joint Venture) (Main Auditor for year ending September 30,2010) 7 300 I CAFR, Financial Audit, Governmental Audit, Federal and State Single Audit Years Served: Since 2004 Contact: Rene Gonzalez (954)-435-6525 Partners: Pablo R. Llerena Manuel Garcia City of Oakland Park - - (GFOA Certificate) (Joint Venture) 5 500 I I CAFR, Financial Audit, Governmental Audit, Federal and State Single Audit Financial Audit, Governmental Audit Years Served: Since 2001 Contact: John Stunson (954) 375 - 7005 Partners: Pablo R. Llerena Manuel Garcia 7 200 I I I ~ GlSC ~,S2~~~,~:;~~~S 9 I I I I I ,I II II I il II I I I I I II II I I I 1l@@/JiJI]i1il~&JJJ [fJfl@[fJ@@&10 (Continued) Specific Audit Approach SCOPE I WORK PRODUCTS I RESULTS Understanding of Work Product / Scope of Services: We recognize the City of Sunny Isles Beach is an important entity in Miami-Dade County and its responsibilities create a challenging and dynamic organization. We are confident our firm is qualified to meet the challenges of this engagement and deliver quality audit services to the City. The City of Sunny Isles Beach would be a valued client of our firm and we pledge to commit all firm resources to provide the level and quality of services (as described below) which both fit the City's needs and exceed the City's expectations. GLSC will perform an audit of the government-wide financial statements and related governmental funds financial statements for the fiscal year ending September 30, 2010, in order to express an opinion on the fair presentation of the City's general purpose financial statements in conformity with accounting principles generally accepted in the United States of America. Our audit will be conducted under auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and Chapter 10.550 Rules of the Auditor General. Our audit will include procedures to determine whether the operations of the City are properly conducted in accordance with legal, regulatory, grant and contractual requirements, including Florida Statutes, Federal Laws and the City Commission's policies and procedures. Special Considerations: In addition, we will : Determine if the financial report the City filed with the Florida Department of Financial Services and banking is in agreement with the financial statements for each fiscal year. Assist the City in complying with the requirements of the Auditor General regarding the City's assessment of its financial condition. Prepare a management letter pursuant to the requirements of the Auditor General of the State of Florida. Assist with the preparation of schedule of state and federal awards. Assist with the preparation of the Comprehensive Annual Financial Report (CAFR). _ ) ~SC ~SZ~:~,~~;.~~~~ Assist with the preparation of the official statements in connection with the sale of debt securities. Will issue a "consent and citation of expertise" as the Auditor. Assist in complying with changes in any reporting requirement to remain in conformity with GAAP. The firm will issue the following reports in accordance with applicable rules and standards: Report on an audit of the financial statements conducted in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Report on Internal Control over Financial Reporting and Compliance and Other Matters based on an audit of Financial Statements in Accordance with Government Auditing Standards. Report on Compliance and Internal Control over Compliance Applicable to each Major State and Federal Programs in accordance with OMB Circular A- 133, if applicable. Management Letter required by Section 10.554(g) of the Rules of the Auditor General of the State of Florida Our approach to developing the report on our findings is particularly important given the increasing financial pressures and public scrutiny facing today's public officials. Our report will include pertinent findings, cause, effect, recommendations for improvement, and suggestions for recommendation implementation, as appropriate. It will also include written response from management. We will make suggestions to improve the City's performance, procedures, and controls. 10 il I ... 1l@@!lDJJi10@&]/J !fJ[j@flJ@@&j/J (Continued) II I Specific Audit Approach (Continued) I Any recommendations for operational improvement will be reasonable and constructive. If your management has already identified a relevant issue, our report will reflect this fact. To ensure full agreement with the circumstances, we will fully discuss each item with the appropriate City personnel prior to the final exit conference. We will discuss pertinent issues only after preliminary communication with the responsible City personnel. This policy means there will be no "surprises" in the report and fosters a professional, cooperative atmosphere. I I Because we wish to assist you in identifying and solving problems before they become critical, we will provide feedback on more than just the items identified in the report. Our report will communicate significant deficiencies or other instances of non-compliance and will also recommend suggestions for improving operational efficiency including decreasing costs, improving management information effectiveness, protecting assets, etc. I I We will immediately report all irregularities and illegal acts or indication of illegal acts to the Director of Finance, City Manager, City Council, and the City Attorney. I AUDIT APPROACH I Our approach to the audit engagement integrates the best of traditional auditing techniques and a total systems concept. We will consider the methods used by the City to process accounting information when planning our audit, since they influence the design of the internal control. The audit will be conducted in three phases, which are as follows: I I Phase 1- Risk Assessment (Interim and Plannina State) I A thorough understanding of your organization, service objectives and its operating environment is essential for the development of an audit plan and for an efficient, cost- effective audit. During this phase, we will meet with appropriate personnel to obtain and document our understanding of your operations and service objectives and, at the same time, give you the opportunity to express your expectations with respect to the services that we will provide. I I Our work effort will be coordinated so that there will be minimal disruption to your staff. I I " _) ~C ~,S~~~~i~!~"~~~~ I During this phase we will perform the following activities: Review the regulatory, statutory and compliance requirements within which the City operates. This will include a review of applicable laws, grant requirements, state statutes, resolutions, debt instruments, contracts, other agreements, and minutes of meetings of the City Council. · Review audit documentation of prior year auditor. Review major sources of information such as budgets, organization charts, procedures, manuals, financial systems, and management information systems. Obtain and document an understanding of the design and implementation of the City's internal control. Consider the methods that the City uses to process accounting information which influence the design of the internal control. This understanding includes knowledge about the design of relevant policies, procedures, and records, and whether they have been placed in operation by the City. Assess risk. Interim work will be completed by August 3151 of each year. Determine what controls we are to rely upon, perform walkthrough documentation and test the operating effectiveness of controls if considered necessary. Develop audit programs to incorporate the consideration of financial statement assertions, specific audit objectives, and appropriate audit procedures to achieve the specified objectives. Identify and resolve accounting, auditing, and reporting matters. A detailed audit plan and list of all schedules to be prepared by the City will be provided by July 3151 of each year. Phase II - Perform Audit Plan (Field Work Staae) 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 matter that may impact the completion of our work or require the attention of management. 11 I .... I 1l@@!liJIJilU@&1[J flJ[j@[fJ@@&11J (Continued) I Specific Audit Approach (Continued) I Tasks to be performed in Phase II include the following: I · Perform substantive tests of account balances and transactions. Samples will be drawn of major transaction systems, including cash expenditures and procurement. · Perform tests of compliance with laws, regulations, contracts, bonds, and grants. Analytical procedures are applied in this phase to corroborate the specific account balances. Review test results and preliminary conclusions. I I Year-end field work will begin in November 15 or as soon as the City's accounting records are closed for the year and the schedules are ready and will be substantially completed by December 31 of each year. I Phase 111 - Completion and Deliverv (Reoortina Staae) I In this phase of the audit, we will complete the tasks related to the closing of year-end balances and financial reporting. This will include final testing in the areas of compliance, balance sheet accounts, revenue and expenditures, among others. All reports will be reviewed with management before issuance, and the partners will be available to meet with the City Council to discuss our report and address any questions they may have. I I A draft and recommendation to Management will be submitted to the City by January 15, of each year. We will discuss all significant findings with the appropriate City's personnel. An exit conference will be held with the Finance Director, key Finance Department personnel and the City Manager before the final report is issued. The final report will be prepared as soon as the draft report has been reviewed by Management and will be submitted by January 30, of each year. We will attend the next City Council meeting to discuss the report and make a final presentation. I I I Year Round Involvement I We will provide period reports throughout the year assessing the impact of any significant regulatory changes; Le. accounting or reporting developments proposed and/or adopted by Government Accounting Standards Boards/ Financial Accounting Standards Board or any other significant financial/accounting matters that may affect the City. I I I \. ) GLSC ~,S~~:~;~~~,,~~~~ - I Communications We emphasize a continuous, year-round dialogue between the City and our management team. We will schedule periodic progress meetings in addition to the entrance, interim and exit conference. During these meetings, City personnel may inform us of their concerns, and we can draw upon our extensive experience with local government operations to offer the appropriate advice and counsel. We believe this continuous, open communication is critical to serving your needs. In addition, we will be involved through the entire year, at no extra cost, to communicate new developments and changes occurring in the governmental sector. LEVEL OF STAFF To achieve the proper balance between the ability to recognize problems and the cost in performing the services, a significant portion of the engagement will be performed by our Management Team. We emphasize utilizing our highest experienced personnel because of their experience, training and education and corresponding abilities to recognize problems and deal with them expediently. .... .... Ql Ql CI .... c: cu .51 == ... c: c: .... cu cu cu Ql ... ll.. :E en en % in number of hours per segment Phase I - Risk Assessment 40% 40% 20% Phase II - Perform Audit Plan 10% 20% 40% 30% Phase III - Report and Delivery 30% 50% 20% 12 II II I I I, I I I I I I II 'I I I I I ~ ~ f/@@IJiJJJilO(s&1/J (jJ[j@[fJ@@@[j (Continued) Specific Audit Approach (Continued) SAMPLE SIZE AND STATISTICAL SAMPLING Our professionals will utilize sampling methodologies designed to ensure effective audit procedures are applied in the most efficient manner. Samplinq Techniques We will utilize representative audit sampling procedures with respect to tests of transactions and tests of controls, where a sample of documentation is to be tested as the principal evidence of a control. During tests of controls, the tests will generally consist of a combination of corroborative inquiry and either observation, examination of documents or re-performance. We will use attribute sampling to test documentary evidence as documentation will be the prime corroborative evidence of identified controls. Statistical and Non-statistical Samplinq Tests of transactions and tests of controls can be performed using either statistically or non-statistically based techniques. Statistical approaches will be based on our calculation of risk factors. If a non-statistical approach is deemed appropriate, we will design our procedures to obtain levels of assurance that we judge to be equivalent to those required when using statistically based techniques. Sample Sizes For tests of controls, sample size will be based on the planned or supported assessed level of control risk and the number of planned or actual deviations expected. For transactions test work, sample size will be a function of population, materiality, and risk factors. USE OF EDP SOFTWARE IN THE PROJECT We are actively committed to using computer-based audit techniques. Our knowledge of information systems (IS) and the use of personal computers yield significant savings in the time required to complete an audit. Today's marketplace provides firms, large and small, national and local, with sophisticated computer-aided audit tools necessary to perform data analysis and report generation. Software products, such as Audit Command Language (ACL) for Windows, are used to analyze data and produce reports. _) ~LSC ~,S~~~~i~~~"~~~~ A client's IS environment influences the nature, timing, and extent of planned auditing procedures. Because most of our clients utilize computerized accounting systems, our professional team is experienced with various IS systems. As computers have become more integral to the financial management system, we have met the challenge by incorporating new audit techniques into the audit process. Staff members are trained on new software and are skilled in a wide variety of computerized applications. Each member possesses their own laptop computer equipped with pertinent audit-related software. We will utilize Prosystem FX for Windows, ACL for Windows, database programs and spreadsheet applications for auditing purposes. An important component of our audit is the review of IS general controls. We understand that the effectiveness of many client control procedures is dependent on reliable computer-generated data which result from proper IS general controls. Therefore, we will analyze these controls to determine the adequacy of the internal control environment. Our IS expertise, combined with extensive auditing and consulting experience means that we understand the technical intricacies of complex information systems in the context of real-world application. Utilizing this expertise we will be able to: evaluate IS general controls within the computer environment; document critical transaction processing systems; identify key processes and controls within these transaction processing systems; evaluate the effectiveness of identified controls; advise the audit team on results of the evaluation and effect on planned audit procedures; design, develop and execute computer-assisted audit techniques using computer audit software packages; assess the internal controls 13 I I I I I I I I I I I I II '. I I I I I I II Il@@ffil[fi)j](stffll} [fJfl@(fJ@@&1/J (Continued) Specific Audit Approach (Continued) ANALYTICAL PROCEDURES Statement of Auditing Standards on Analytical Procedures provides guidance on the use and extent of analytical procedures in all audits. Analytical procedures are required in the planning and overall review stages of the audit, and are used in the following areas: Audit Planning Analytical procedures can provide great insight in planning an audit. These analyses can enhance our understanding of the City's transactions and events that may have occurred during the year under audit. We compare the current balances to the prior year and to the current budget. Isolating significant differences can identify areas that may require additional attention during the field work. For example, such a review could identify a new revenue source for which we would need to obtain documentation supporting the authority for collecting such monies. Substantive Tests Analytical procedures can be used as effective substantive tests in certain circumstances, for example, testing certain payroll related expenditures, such as payroll taxes, which are a specific percent of wages. Overall Review Analytical procedures used at the conclusion of the audit are designed to assess the conclusions reached and evaluate the overall financial statement presentation. INTERNAL CONTROLS The internal control segment is the foundation for the entire audit and involves an extensive understanding and evaluation of the City's operating and management information systems and all related internal controls. The results of this evaluation will influence the nature, timing and extent of our substantive audit procedures. This approach ensures that we achieve maximum efficiency and provides valuable feedback to management regarding the effectiveness of controls being relied upon throughout the year. A thorough understanding of the internal control structure of an organization is critical in planning our audit procedures and providing useful comments and recommendations to the City. GLSC utilizes a standardized control overview document which assists us in identifying key elements within internal control, such as the entity's risk assessment process, the control environment, information and communication systems, and general monitoring and control activities. ) ~SC ~,S~~:~,~~;.~~~S - Our evaluation of internal control includes considering the individual components noted above and then considering the effectiveness of internal control as a whole. We will obtain our understanding of each of the elements through the following procedures: Meeting with the City personnel to discuss operations; and Reviewing internal assessment of internal control The control overview document helps to ensure that all elements of internal control are considered. Subsequently, for significant internal control structure categories, we will obtain an understanding of the design of relevant policies and procedures, determine whether such procedures have been placed in operation and assess control risk. This review begins by holding interviews with data processing and accounting personnel and evaluating your internal system and accounting documentation. We will then prepare documentation of the major systems. To the extent it is available; we will also use internal control documentation currently available. This review is organized into major accounting cycles. We have found through our experience that there are two primary methods to test controls. ~ Documented controls - Tested by reviewing a sample of transactions for evidence that the control was being performed. ~ Undocumented controls - Tested through inquiry and observation procedures with appropriate department personnel. LAWS AND REGULATIONS Statement on Auditing Standards from the American Institute of Certified Public Accountants, establishes standards for testing and reporting on compliance with laws and regulations. In all financial statement audits, the auditor must consider laws and regulations that have a direct and material effect on the financial statements. 14 I I I I I I I I I I i I I I I I I I I !1@@f};j;jJa@&lIJ [fJ(j@)fJJ@@&lD (Continued) Specific Audit Approach (Continued) Further, the auditor designs audit procedures to provide reasonable assurance that the financial statements are free of material misstatements resulting from violations of these laws and regulations that have a direct and material impact on the financial statements. For governmental entities, this requirement is even more important given the variety of legal and contractual considerations typical of the government environment. Identification of Anticipated Potential Audit Problems We are aware of the uniqueness of the City and will anticipate any issues by addressing them at their early stages. We do not know of any potential audit problems. If requested, GLSC can be involved throughout the entire year, at no extra cost, by providing assistance in current and new evolving issues. Identifying applicable laws and regulations is fundamental to fulfilling the responsibility of understanding their effects. We will obtain this knowledge through the following sources: Smooth Transition ~ Discussion of compliance requirements with the City officials, including legal counsel. ~ Identification of compliance matters in statutes, financial ordinances, City policies, contracts, grants and debt agreements. ~ Review of City Council meeting minutes. ~ Inquiries of the program administrator of the governmental entities that provided grants about restrictions, limitations, terms and conditions under which such grants were provided including review of the OMB Circular A-133 Compliance Supplement and the Florida Single Audit Act, if applicable. ~ Our existing knowledge of federal and state laws. GLSC's transition will be smooth, with minimal disruption of the City's staff and operations. We can make this assurance because we are experienced in transitioning a number of governmental engagements. Our transition process assures the City that: AUDIT SAMPLES FOR TEST OF COMPLIANCE only staff with directly relevant experience and genuine interest in serving the City will be assigned; · all of our staff will be thoroughly oriented to the City, its activities, organization and management; · our staff, at all levels, will familiarize themselves with the City's responsible staff and the areas in which they operate, and ensuring our staff will be immediately available to serve the City; and · the City realizes benefits right from the start including a fresh look at the City's control and systems. Tests of compliance with laws and regulations are included with the tests of transactions and controls, when practical. 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. ..., ) ~C ~<S~~~~j~~~"~~~S -- 15 ~ I I I 'I I I I II I I ,I I 'I !I I II I I Co V'vCt L lA.$ ~o V'v GLSC IS THE "RIGHT' CHOICE FOR THE CITY OF SUNNY ISLES BEACH. FLORIDA GLSC PLEDGES THE FOLLOWING GUARANTEES Provide a qualified and experienced audit team possessing knowledge of the operation and administration of the City's compliance and legal requirements, and accounting and reporting for operations pursuant to auditing standards and legal requirements The partners and staff of GLSC are committed to providing the City of Sunny Isles Beach with our resources and specialized expertise. We are committed to work closely with the City's staff to accomplish not only those minimum requirements set forth in your Request for Proposal, but to exceed those expectations. Demonstrate our commitment to quality client service through: . ease of accessibility . prompt response to questions, comments, or requests . insight and suggestions regarding internal controls, management, and operation, as proper, for both financial and compliance considerations Provide value and services above and beyond the traditional auditor's "product" - we will "go the extra mile" Coordinate with the City's personnel, to ensure minimum disruption and maximum contribution of City staff Develop and maintain open lines of communication with the City to help expedite the audit process and avoid awkward end-of-engagement "surprises" i ) ~LSC ~,S~~~~,~.;;":~~~ - I 16 ~ I I I I I I I I I I I I I I I I I I I CITY OF SUNNY ISLES BEACH PART 1 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE SEPTEMBER 30,2010 - 2012 FINANCIAL STATEMENTS: SUPPORTING SCHEDULE FOR AUDIT SERVICES PROPOSED HOURS HOURL V RATES PROPOSED TOTAL Partners 15 220 $9.900 Managers 75 120 9,000 Supervisory Staff 210 100 21,000 Staff 110 80 11.200 Other (specify) Subtotal 470 51.100 Other Expenses (specif ): DISCOUNT (1,100) Total All-Inclusive Price for Audit Services Year I 50,000 Year 2 55,000 Year 3 60,000 Grand Total Price for Audit Services (3 Years) $ 165.000 Grand Total Price for Audit Services (3 Years) Written NOTE: If the proposed hourly rates used to calculate the total all-inclusive price for any contract year are different from contract year I rates, provide an index for those years or provide rates for each staff level and each contract year tor which there is a change. - ~I I :1 II I I I I II I I I II I I I I I I II I II I Ii I CITY OF SUNNY ISLES BEACH SCHEDULE OF PROPOSAL PRICES PART 2 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE 2009 FINANCIAL STATEMENTS: COMBINING SCHEDULE - ALL SERVICES Nature of Service to be Provided Schedule Total Price Florida Sin Ie Audit A 16,000 Federal Sin Ie Audit B 16,000 EDP Auditin Services C 7.000 TOTAL $ 39,000 Total Amount Written Each service described in this RFP - Special Considerations and Services should be supported by an individual schedule in the fannat provided on Part I of the Schedule of Proposal Prices. ..... i I I I I I I I I I I I I I I I I I I Schedule A CITY OF SUNNY ISLES BEACH PART 1 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE SEPTEMBER 30,2010 - 2012 FLORIDA SINGLE AUDIT SUPPORTING SCHEDULE FOR AUDIT SERVICES PROPOSED HOURS HOURLY RATES PROPOSED TOT. . 16 $220 $3,520 Partners Managers 36 120 4,320 Supervisory Staff 48 100 4,800 Staff 40 80 3,200 Other (specify) Subtotal 140 15,840 Other Expenses (specif ): Miscellaneous 160 Total All-Inclusive Price for Audit Services Year I 16.000 Year 2 19.000 Year 3 22,000 Grand Total Price for Audit Services (3 Years) $ 57.000 Grand Total Price for Audit Services (3 Years) Written NOTE: If the proposed hourly rates used to calculate the total all-inclusive price for any contract year are different from contract year I rates, provide an index for those years or provide rates for each staff level and each contract year for which there is a change. ~ I !. I I I I I I I I I I I I I I I I ~ Schedule 8 CITY OF SUNNY ISLES BEACH PART 1 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE SEPTEMBER 30,2010 - 2012 FEDERAL SINGLE AUDIT SUPPORTING SCHEDULE FOR AUDIT SERVICES PROPOSED HOURS HOURL Y RATES PROPOSED TOT - 16 $220 $3,520 Partners Managers 36 120 4,320 Supervisory Staff 4H 100 4,800 Staff 40 80 3,200 Other (specify) Subtotal 140 15.H40 Other Expenses (specif ): Miscellaneous 160 Total All-Inclusive Price for Audit Services Year I 16,000 Year 2 19.000 Year 3 22.000 Grand Total Price for Audit Services (3 Years) $ 57,000 Grand Total Price for Audit Services (3 Years) Written NOTE: If the proposed hourly rates used to calculate the total all-inclusive price for any contract year are different from contract year I rates, provide an index for those years or provide rates for each staff level and each contract year for which there is a change. - II 'I II I I I II I I II I I II I I I II I :~ II Schedule C CITY OF SUNNY ISLES BEACH PART 1 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE SEPTEMBER 30,2010 - 2012 CAFR SUPPORTING SCHEDULE FOR AUDIT SERVICES PROPOSED HOURS HOURLY RATES PROPOSED TOTAL Partners 8 $220 $1.760 Managers 16 120 1.920 Supervisory Staff 24 100 2.400 Staff 12 80 960 Other (specify) Subtotal 60 7.040 Other Expenses (specif ): Total All-Inclusive Price for Audit Services Year I 7,000 Year 2 7,000 Year 3 7,000 Grand Total Price for Audit Services (3 Years) $ 21.000 Grand Total Price for Audit Services (3 Years) Written NOTE: If the proposed hourly rates used to calculate the total all-inclusive price for any contract year are different from contract year I rates, provide an index for those years or provide rates for each staff level and each contract year for which there is a change. I I I I I I I I I I I I I I I I I I I SWORN STATEMENT PURSUANT TO SECTION 287.133(3)(a) FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES THIS FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICIAL AUTHORIZED TO ADMINISTER OATHS. 1. This sworn statement is submitted to CITY OF SUNNY ISLES BEACH by PABLO LLE~ENA, CPA GLSC & COMPANY, PLLC for whose business address is 6303 BLUE LAGOON DRIVE, SUITE 200 MIAMI, FL 33126 and (if applicable) its Federal Employer Identification Number (FEIN) 20-3157326 (If the entity had no FEIN, include the Social Security Number of the individual signing this sworn statement: 2. I understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or of the United States, including, but not limited to, any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. 3. I understand that "convicted" or "conviction" as defined in Paragraph 287. 1 33(l)(b), Florida Statutes means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, nonjury trial, or entry of a plea of guilty or nolo contenders. 4. I understand that an "affiliate" as defined in Paragraph 287.l33(l)(a), Florida Statutes, means: a. A predecessor or successor of a person convicted of a public entity crime; or b. An entity under the control of any natural person who is active in the management of the entity and who has been convicted of a public entity come. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into ajoint venture with a person who has been convicted ofa public entity crime in Florida during the preceding 36 months shall be considered an affiliate. ~ . I I I I I I I I ~ I I I I I I W I 5. I understand that a "person" as defined in Paragraph 287.133(1)( e), Florida Statutes, means any natural person or entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term "person" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of any entity. 6. Based on information and belief, the statement which I have marked below is true in a relation to the entity submitting this sworn statement. (Please indicate which one (1) of the following three (3) statements is applicable.) ~ (1) Neither the entity submitting this sworn statement, nor any of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or any affiliate of the entity has been charged with and convicted of a public entity crime within the past 36 months. _(2) The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or any affiliate of the entity has been charged with and convicted of a public entity crime within the past 36 months. _(3) The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or agents who are active in management ofthe entity, or any affiliate of the entity has been charged with and convicted of a public entity crime within the past 36 months. However, there has been a subsequent proceeding before a Hearing Officer ofthe State of Florida, Division of Administrative Hearings and the Final Order by the Hearing Officer determined that it was not in the public interest to place the entity submitting this sworn statement on the convicted vendor list. (Attached is a copy of the final order.) I UNDERSTAND THAT THE SUBMISSION OF THIS FORM TO THE CONTRACTING OFFICER FOR THE PUBLIC ENTITY IDENTIFIED IN PARAGRAPH I (ONE) ABOVE IS FOR THE PUBLIC ENTITY ONLY AND, THAT THIS FORM IS VALID THROUGH DECEMBER 31 OF THE CALENDAR YEAR IN WHICH IT IS FILED AND FOR THE PERIOD OF THE CONTRACT ENTERED INTO , WHICHEVER PERIOD IS LONGER. I ALSO UNDERSTAND THAT I AM REQUIRED TO INFORM THE PUBLIC ENTITY PRIOR TO ENTERING INTO A CONTRACT IN EXCESS OF THE THRESHOLD AMOUNT PROVIDED IN SECTION 287.017, FLORIDA STATUTES FOR THE CATEGORY TWO OF ANY CHANGE IN THE INFORMA TION CONTAINED IN THIS FORM. Q~ /{~ SIGNATURE OF AFFIANT PABLO LLERENA, CPA (Printed or Typed Legal Name of Affiant) .... w ~ I I I I I I I I I I I I I I I ~ I STATE OF FLORIDA ) )ss. COUNTY OF MIAMI-DADE) The foregoing Form was acknowledged before me this-.J.L day of Ju\U , 20ClQ, by 1G'o\O UffCtlQ , as (::o.('-tf\eI ' of 6L..CL'i- (tJm\XX\\l PW' , a Florida corporation, on behalf of said corporation and limited partnership. lie/She personally appeared before me and is personally known to me. { NOTARY SEAL l........."""..""".,,.: :''''''''MioSOTY MARRERO ~ : "\\\11111/1,,, Comm# 000724682 : . ~~~'f '(J4;~ . ~ ~~ ~'%: Expires 11/9/2011 E E ~~ ~ Florida Notary Assn., Inc : : ""T,f. .............................. .................. Nota,ffi r~ Print Name ~\~ \-..\a(fef(,) Notary Public, State 0 Flonda My Commission Expires: \ \ 19J 1-0 \ \ . ~ I I I I I I I I I I I I I I I ~ . NON-COLLUSION AFFIDAVIT STATE OF FLORIDA COUNTY OF MIAMI-DADE The undersigned being first duly sworn as provided by law, deposes, and says: 1.1. This Affidavit is made with the knowledge and intent that it is to be filed with the City of Sunny Isles Beach City Commission and that it will be relied upon by said City, in any consideration which may give to and any action it may take with respect to this proposal. 1.2. The undersigned is authorized GLSC & COMPANY, PLLC ete.), a corporation duly organized and FLORIDA of which he is President, ete.) to make this Affidavit on behalf of, (Name of Corporation, Partnership, Individual, existing under the laws of the State of PARTNER (Sole Owner, Partner, 1.3. Neither the undersigned nor any person, firm, or corporation named in above Paragraph 1.2, nor anyone else to the knowledge of the undersigned, have themselves solicited or employed anyone else to solicit favorable action for this proposal by the City, also that no head of any department or employee therein, or any officer of the City of Sunny Isles Beach, Florida is directly interested therein. 1.4. This proposal is genuine and not collusive or a sham; the person, firm or corporation named above in Paragraph 1.2 has not colluded, conspired, connived or agreed directly or indirectly with any Proposer or person, firm or corporation, to put in a sham proposal, or that such person, firm or corporation, shall refrain from Proposing, and has not in any manner, directly or indirectly, sought by agreement or collusion, or communication or conference with any person, firm or corporation, to fix the prices of said proposal or proposals of any other Proposer; and all statements contained in the proposal or proposals described above are true; and further; neither the undersigned, nor the person, firm or corporation named above in Paragraph 1.2, has directly or indirectly submitted said proposal or the contents thereof, or divulged information or data relative thereto, to any association or to any member or agent thereof. PABLO LLERENA, CPA AFFIANT'S NAME PARTNER AFFIANT'S TITLE ~ I I I I I I I I I I I I I I I II I I The foregoing Affidavit was acknowledged before me this~ day of Jul\.{ , 20(19, by \b.b\o L\erenO , as OOY'-+nE! of (-:3lSC -+ C'm\(XI'\l \ PLLC a Florida corporation, on behalf of said corporation and limited partnership. He/She personally appeared before me and is p-ersonally known to me~ { NOTaRIAL SEAL} t........................ ~, ~ E ,\\\\.II,~'OSOTY MARRE.R..O........~otary: ~ ~ #..Np"1< .. ~ j if:.~ Comm#DD072468211nnt Name:~n).~ . Q(rer-o. ~.; ~\ OFf" ,~ Expires 11/912011 f'otary PublIc, State of londa \ "111""\\\ FIo' Me' . E' \ \ ~(' llY"'\l L ...",............... rida Notary Assn , Y ommlsslOn xplres: "-1 'L.-U ............ ", nc : ............... ~ I APPENDIX 1- LICENSE TO PRACTICE IN FLORIDA I AC# 4669257 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY SEQ#L09101400670 LICENSE NBR I GLSC & COMPANY PLLC 6303 BLUE LAGOON DRIVE, SUITE 200 MIAMI FL 33126-6025 I I CHARLIE CRIST GOVERNOR DISPLAY AS REQUIRED BY LAW CHARLES W; DRAGO SECRETARY I I (il~t66'ill~~I~fllili~~~ : . LJ:CENSE,>t{BR",;-~'_"~nl' ';f.t,/ ijij~rlliI::~;; .6303;'.BLUE ',Li\GOON"DR.irVE":'Y:'ij.',)\("..Ji;.' s;'(j'.::' ,. v!'11~1I~!I~~~i111ijl~~~~i~~ REGU'LATION.'..: , . ,- S.Eq#LosilOS00390, I I I CHARLESW;. DRAGO SECRETARY , ',~:." I ~~f~~~~jlllt'~f!fiillt~~~~~~. ,'. ',; REGULATION:.:\,. .... . ! 'ii. SEQ#LOSl10400461 I I ;', ' I I J;'g~~L'i~.fa~~~i.r ". ','GOVEaNOR .::.), "'f~\ t,I.:.;~i"',\::X.~~ \:'W?:/: .~.~ . ,..Y;~r~'i{!'tf~if2ft;L..:';' ., ".DISPLAY AS REQUIRED BY LAW CHARLES W. DRAGO SECRETARY I w I . I APPENDIX" - QUALITY CONTROL REVIEW November 7, 2007 HB HEVIA. BEAGLES & COMPANY. P. A. PROFESSIONAL CONSULTING GROUP CERTIFIED PUBLIC ACCOUNTANTS I I To the Owners GLSC & Company, PLLC ffkla BKR Garcia & Company, PLLC I I We have reviewed the system of quality control for the accounting and auditing practice of GLSC & Company, PLLC (the firm) in effect for the year ended June 30, 2007. A system of quality control encompasses the firm's organizational structure, the policies adopted and procedures established to provide it with reasonable assurance of conforming with professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of CPAs (AICPA). The firm is responsible for designing a system of quality control and complying with it to provide the firm reasonable assurance of conforming with professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the fmn's compliance with its system of quality control based on our review. I I Our review was conducted in accordance with standards established by the Peer Review Board of the AICPA. During our review, we read required representations from the firm, interviewed firm personnel and obtained an understanding of the nature of the firm's accounting and auditing practice, and the design of the fmn's system of quality control sufficient to assess the risks implicit in its practice. Based on our assessments, we selected engagements and administrative files to test for conformity with professional standards and compliance with the firm's system of quality control. The engagements selected represented a reasonable cross-section of the firm's accounting and auditing practice with emphasis on higher-risk engagements. The engagements selected included among others engagements performed under Government Auditing Standards and audits of employee benefit plans. Prior to concluding the review, we reassessed the adequacy of the scope of the peer review procedures and met with firm management to discuss the results of our review. We believe that the procedures we performed provide a reasonable basis for our opinion. I I I In performing our review, we obtained an understanding of the system of quality control for the firm's accounting and auditing practice. In addition, we tested compliance with the firm's quality control policies and procedures to the extent we considered appropriate. These tests covered the application of the firm's policies and procedures on selected engagements. Our review was based on selected tests therefore it would not necessarily detect all weaknesses in the system of quality control or all instances of noncompliance with it. There are inherent limitations in the effectiveness of any system of quality control and therefore noncompliance with the system of quality control may occur and not be detected. Projection of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or because the degree of compliance with the policies or procedures may deteriorate. I I I In our opinion, the system of quality control for the accounting and auditing practice of GLSC & Company, PLLC in effect for the year ended June 30, 2007, has been designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the AICPA and was complied with during the year then ended to provide the firm with reasonable assurance of conforming with professional standards. I As is customary in a system review, we have issued a letter under this date that sets forth comments that were not considered to be of sufficient significance to affect the opinion expressed in this report. ~p~:~~ I ~ . I ... ~ ~ APPENDIX" - QUALITY CONTROL REVIEW (Continued) I HB HEVIA, BEAGLES & COMPANY, P. A. PROFESSIONAL CONSULTING GROUP CERTIFIED PUBLIC ACCOUNTANTS I I I November 7, 2007 I To the Owners GLSC & Company, PLLC f/k/a BKR Garcia & Company, PLLC I We have reviewed the accounting and auditing practice of GLSC & Company, PLLC (the firm) for the year ended June 30, 2007, and have issued our report thereon dated November 7,2007. That report should be read in conjunction with the comments in this letter, which were considered in determining our opinion. The matters described below were not considered to be of sufficient significance to affect the opinion expressed in that report. I 1. Comment - Newly issued professional standards require documentation of independence considerations when providing non-attest services to an attest client. The firm has established policies and procedures to safeguard independence, but has not established a policy for documenting those considerations on compilation and review engagements. As a result, such independence considerations were generally not documented on those engagements. I Recommendation - The firm should adopt a policy requiring this documentation and should hold a training session for all staff to familiarize them with these requirements. Compliance with this requirement should be evaluated during the firm's next annual inspection. I I \.l~~~O,~~ Cortifi'" P'~n_ .0- I I I I I . I . I APPENDIX 11I- CERTIFICATE OF INSURANCE I ~ I ~R CERTIFICATE OF LIABILITY INSURANCE I DATlII"""'DIYYYY\ OP 10 CM GLSC&-l 12/31/09 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE Gifford Wells Insurance HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 750 East Propect Road ALTER THE COVERAGE AFFORDED BY THE POUCIES BELOW. Fort Lauderdale FL 33334 Phone: 954-563-1841 Fax: 954-563-1849 INSURERS AFFORDING COVERAGE NAICII INSURED INSURER A:. ,hU.dolph1a Inaul'a~ CoqIanv INSURER 0, GLSC & Co~any PLLC INSURER c' 6303 Blue a~oon Drive 11200 INSURER D, I Miami FL 331 6 .. , INSURER E: I I COVERAGES THE POUCIES OF INSURANCE lIST[D 8ELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICAT[D NOTWITHSTANDING AH't REOUIREMENT. TERM 011 CONDmON OF AH't CONTRACT OR OTHER DOCUMENT WIllI RESPECT TO WHICH THIS CERTlFICAT[ MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFOROED BY THE POLICIES DESCRIBED HEREtN IS SUBJECT TO AU THE TERMS. EXCLUSIONS AND CONOmON$ OF SUCH POUClES AGGREGATE LIMITS SHOWN MAY HAve BEEN REDUCED BY PAID CLA1MS I I LTii INii;.;l TYP8 OP INaUItAHCI I ~EIIAI. UA8l1J1"( I ~. COMMERCIAl. GENERAl. LIABILITY I --1 ClAIMS MADE 0 OCCUR I GEN'l AGGREGATE LIMIT APPLIES PER: . POllCV IJ ~:fT n LOC i ~1lO1IIUl UAllIUTY ! I i_AUTO I 'R AlL OWNED AUTOS . I SCHEDULED AUTOS : R HIRED AUTOS H NON.OWNED AUTOS I I ~B LWNUTY I : AH't AUTO ~ POUCY NUMBeR ~JiCVU'ECTIVr &~~.f~~ I EACH OCCURRENce PReM,seS ,eo """"""'" $ MED EXP (Any..... """""I . PERSONAl. & ADV INJURY . GENERAl. AGGREGATE S PRODUCTS. COMPIOP AGO $ UIIIT8 Is I I I ! 1$ COMBiNeD SINGLE lIMIT (Ell acr;ident. I BODilY INJURY I. (PlItpefSCtl) I BODIL. Y INJURY I (Pet ac:c:ident) $ PROPERTY DAMAGE $ (Ptfaecideftl. I I I ~E88/U"IRELLA UA8lUTY I U OCCUR 0 ClAIMS MACE AUTOONLY.EAACCIOENT . EAACC . AGO I. I. I. I. I. EACH OCCURRENCE AGGREGAT[ OTHER THAN AUTO ONLY, I I I DEDUCTIBLE ; ~ RETENTION S j ::D~~~:8~~~~ V/N 1 AHV PROPRIETORlPARTNERlEXECUTrvFr--1 OFFICERlMEMBER EXCLUDED? Ll (Mandato" In HH) I ~rc:~~~NS""" I~~ I A Professional Liab i PHSD472797 01/01/10 CE.SCRlPtIOH O'OPERAnCNS I LOCAnaNB I VEHICLES I EXCLUSIONS ADDlD BY EHDCRSEII2JtT' "ECtAL PROVISIONS Accountants Professional Liability Insurance with 01/01/2006 ITOR'Y~':'MiTs i iU~R' E,L. EACH ACCIDENT S E.L- OISEASE - EA EMPLOYEE S E.l. DISEASE. POLICY llMlT I 01/01/11 I Per Claim Aacn:eaate $3,000,000 $3.000.000 II I prior acta date I !I I I PROOF OF INSURANCE CANCELLATION SHOULD ANY 011 THE ABOVI!. DESCRIBED POUClEI BE CANCELLEO BEPORB THE EXPIRAtiON DATIl THERIOP. ntE ISSUING INSURER WILL ENDEAVOR TO MAIL 3.2..- DAYS WRITTEH NOTICe TO THB CEftl1P1Clln HOLOER NAMED TO THE LEFT. BUT ,AtLURe TO 00 80 SHALL IMPClIE NO OIUOAnON OR UABlUTY 0' AJf'( KINO UPON TN! lNSUA!Jt.IT8AOINTS OR REPRUENTATIVU. AUTHORIZED REPRI!IEHTATIVE /1 . _ I Lynette C. Wells ~ ~ @1988.2009 ACORD C Tha ACORD nama and logo an nglstered marks of ACORD CERTIFICATE HOLDER ACORD 25 (2009/01) I i . I I APPENDIX III - CERTIFICATE OF INSURANCE I ~ I ACORD" CERTIFICATE OF LIABILITY INSURANCE I DATE (MMIODIYYYY) ~ 1/4/2010 PRODUCER (954) 382-4350, Fax(954)382-2810 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION SETNOR BYER INSURANCE I< RISK ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 7901 SW 6th Court ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Suite 430 Plantation FL 33324 INSURERS AFFORDING COVERAGE NAIC# INSURED INSURER ^' Hartford Casualty Ins Co GLSC I< Company, PLLC INSURER B: 6303 Blue Lagoon Drive INSURER c: Suite 200 INSURER D: MIAMI I FL 33126 INSURER E: COVERAGES I I THE POLICIES OF INSURANCE L1STEO 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. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR DD'L POLICY NUMBER POLICY EFFECTIVE POLICY EXPlRA liON LIMITS LTR N ~NERAL LIABIUTY plSBAllM5294 01/01/2010 01/01/2011 EACH OCCURRENCE S 1 000,000 ..!- 5MERCIAL GENERAL LIABILITY PREMISES Ea OCQJrrence $ 500,000 A f- CLAIMS MADE [i] OCCUR MEO EXP (Anyone person) S 10,000 PERSONAL & ADV INJURY S 1 000 000 GENERAL AGGREGATE S 2 000 000 rl'L AGG~nE LIMIT APnS PER: PRODUCTS - CeMP/OP AGG S 2 000 000 POLICY ~:R.; LOC ~TOMOBllE LIABILITY lSBARMS294 01/01/2010 01/01/2011 COtv'BINED SINGLE LIMIT $ 1,000,000 f- ANY AUTO (Ea accident) A f-- All OWNED AUTOS BOQIL Y INJURY S SCHEDULED AUTOS (Per person) f-- ~ HIRED AUTOS SOOIL Y INJURY S ~ NON-OWNEO AUTOS (Per accident) I PROPERTY DAMAGE (Per accident) S ==fAGE liABILITY AUTO ONLY - EA ACCIDENT S ANY AUTO OTHER THAN EA ACC S AUTO ONLY: AGG S ~ESS' UMBRELLA LIABILITY lSBARMS294 01/01/2010 01/01/2011 EACH OCCURRENCE S 4,000,000 OCCUR 0 CLAIMS MADE AGGREGATE S 4 000 000 S A ~ DEDUCTIBLE S X RETENTION S 10,000 S WORKERS COMPENSA lION WC STATU. 10l~. AND EMPLOYERS' LIABILITY VIN ~~I~:~~~~~~~~m6~ECUTNE 0 E.l. EACH ACCIDENT S (Mandatory In NH) EL DISEASE 4 EA EMPLOYE S ~~Etl~t~~~v~1oNS below EL DISEASE - POLICY LIMIT S OTHER DESCRIPTION OF OPERATIONS' LOCATIONS 'VEHICLES' EXCLUSIONS ADDED BY ENDORSEMENT' SPECIAL PROVISIONS CERTIFICATE HOLDER CANCELLATION I I I I I I I I (305) 374-4415 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION GLSC I< COMPANY, PLLC DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAil ~ DAYS WRITTEN 6303 BLUE LAGOON DRIVE NOTICE TO THE CERTifiCATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO 00 SO SHALL SUITE 200 MIAMI, FL 33126 IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTAnVE ~---=~ Daniel Sannders/DANNY @1988-2009ACORD CORPORATION. All rights reserved. The ACORD name and logo arB registered marks of ACORD PDF created with FinePrint pdfFactory Pro trial version www.pdffactorv.com ACORD 25 (2009/01) INS025(200901) I I I I I