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HomeMy WebLinkAboutAC&C, LLP 4649 PONCE DE LEON BLVD. SUITE 404 CORAL GABLES, FL 33146 - 21 1 B TEL: 305-662-7272 FAX: 305-662-4266 Alberni, Caballero & Castellall"s, L.L.P. ACC-CPA.CoM CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS May 4, 2007 RECEiVED MAY Q 4 2007 Doug Haag, Assistant City Manager City of Sunny Isles Beach 18070 Collins Ave. Sunny Isles Beach, FL 33601 ..~.... \8llM BeQd1 cuy of SUO" OJ Clerk ()ff\ce 01 \hEI Re: REQUEST PROPOSAL FOR EXTERNAL AUDITING SERVICES Alberni Caballero & Castellanos, L.L.P. (AC&C) would like to thank you and the City of Sunny Isles Beach, Florida (the City) for providing us the opportunity to respond to the City's proposal for independent auditing services. We propose a total all-inclusive maximum price for the audit of the comprehensive annual financial reports of the City of Sunny Isles Beach, for the fiscal years ending September 30, 2007, 2008 and 2009 of $28.500. $30.000 and $32.000. (See breakdown of fees included with the cost proposal) Cost For Additional Services The following schedule summarizes our rates for any additional services that may be requested by the City: Standard Proposed Hourly Hourly Personnel Billing Billing Classifications Rates Rates Quality Control Partner 225 175 Engagement Partner 200 150 Partner/Manager 175 125 Accounting Senior 110 90 Accounting Staff 90 80 Administrative 40 25 Please note that we have discounted our hourly rates for the benefit of the City. This proposal is a firm and irrevocable offer for ninety (90) days. 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 items or with the City. We also certify that our proposal is in all respects fair, without outside control, collusion, fraud, or otherwise illegal action, and was prepared in good faith. Only the person(s), company or parties interested in the project as principals are named in the proposal. The firm has no existing or potential conflicts, and anticipates no conflicts during the engagement. Nestor Caballero, CPA, is authorized to make representations for and to bind the firm. He can be reached at (305) 662-7272. His e-mail addressisnestor@acc-coa.com. Please do not hesitate to call if you have any questions about the information provided in this proposal. We thank you for considering our firm's qualifications and experience and look forward to serving you. Very truly yours, Alberni Caballero & Castellanos, L.L.P. -7 /- Nestor Caballero, CPA SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE SEPTEMBER 30.2007 FINANCIAL STATEMENTS; Quoted Hourly Est. Hours Rates Fee Partners 73 $ 175 $ 12,775 Managers 0 $ 125 $ - Supervisory staff 122 $ 90 $ 10,980 Staff 64 $ 70 $ 4,480 Other (specify): Administrative 10 $ 25 $ 265 Subtotal 269 $ 28,500 Total for services Described in Section II of the RFP (Detail on subsequent pagees) Out-of-pocket expenses: $ - Meals and lodging $ - Transportation $ - Other (specify): $ - Total not-to-exceed price for FY 2007 audit $ 28,500 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE SEPTEMBER 30. 2008 FINANCIAL STATEMENTS; Quoted Hourly Est. Hours Rates Fee Partners 50 $ 175 $ 8,750 Managers 70 $ 125 $ 8,750 Supervisory staff 80 $ 90 $ 7,200 Staff 72 $ 70 $ 5,040 Other (specify): Administrative 10 $ 25 $ 260 Subtotal 282 $ 30,000 Total for services Described in Section II of the RFP (Detail on subsequent pagees) Out-of-pocket expenses: $ - Meals and lodging $ - Transportation $ - Other (specify): $ - Total not-to-exceed price for FY 2008 audit $ 30,000 SCHEDULE OF PROFESSIONAL FEES AND EXPENSES FOR THE AUDIT OF THE SEPTEMBER 30.2009 FINANCIAL STATEMENTS; Quoted Hourly Est. Hours Rates Fee Partners 50 $ 190 $ 9,500 Managers 70 $ 130 $ 9,100 Supervisory staff 81 $ 95 $ 7,695 Staff 72 $ 75 $ 5,400 Other (specify): Administrative 10 $ 30 $ 305 Subtotal 283 $ 32,000 Total for services Described in Section II of the RFP (Detail on subsequent pagees) Out-of-pocket expenses: $ - Meals and lodging $ - Transportation $ - Other (specify): $ - Total not-to-exceed price for FY 2009 audit $ 32,000 I I I I I I I I I I I I I I I I I I I REQUEST FOR PROPOSAL FOR AUDIT SERVICES FOR THE RECEIVED I ~Ji MAY 04 2007 IP CITY OF SUNNY ISLES BEACH, FLORIDA FOR THE FISCAL YEARS ENDING SEPTEMBER 30,2007,2008 AND 2009 Alberni Caballero & Castellanos, L.L.P. 4649 Ponce de Leon Blvd, Suite 404, Coral Gables, FL 33146 Telephone: (305) 662-7272 Fax: (305) 662-4266 Contact Person: May 4, 2007 Nestor Caballero, CPA *_B Governmental Audit Quality Center I I I I I I I I I I I I I I I I I I I TABLE OF CONTENTS PAGE 1 SECTION I LETTER OF TRANSMITTAL GENERAL QUALIFICATIONS AND FIRM'S EXPERIENCE 4 SECTION II SECTION III CONCLUSION APPENDICES A B C D E F TEAM QUALIFICATIONS AND EXPERIENCE 7 SPECIFIC AUDIT APPROACH 16 23 Letters of Recommendation Licenses to Practice in the State of Florida Insurance Disclosure Affidavits Peer Review Report Sample Management Letters I I Alberni, Caballero & Castellanos, LL.P. 4649 PONCE DE LEON BLVD. SUITE 404 CORAL GABLES, FL 33146 - 21 1 B TEL: 305-662-7272 FAX: 305-662-4266 I ACC-CPA.COM CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS May 4, 2007 I Doug Haag, Assistant City Manager City of Sunny Isles Beach 18070 Collins Ave. Sunny Isles Beach, FL 33601 I I Re: REQUEST PROPOSAL FOR EXTERNAL AUDITING SERVICES I The independent certified public accounting firm of Alberni Caballero & Castellanos, L.L.P. proudly submits the following proposal to provide professional auditing services to the City of Sunny Isles Beach, Florida (the City) for the fiscal years ending September 30,2007,2008 and 2009. I The firm is based in Broward and Dade County, and consists of 5 partners and over 20 professionals dedicated to serving the public sector. The firm's partners have been providing professional CPA services throughout Florida for the past 30 years and are members of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. Alberni Caballero & Castellanos, L.L.P. is also a member of the recently established Government Audit Quality Center. I We are uniQuelv Qualified to perform professional auditing services for the City due to the following: I Throughout the years, our management team has performed numerous Public Sector audits which include the following 15 municipalities (9 of the 21 local governments audit clients have issued CAFR'S): Current Clients served by Alberni Caballero & Castellanos LLP; I .:. City of HIALEAH GARDENS - financial, defined benefit pension plan and single audit .:. City of MIAMI SPRINGS - financial and single audit .:. City of SOUTH MIAMI- financial, defined benefit pension plan and single audit .:. Village of BISCA YNE PARK - financial and single audit .:. Village of EL PORTAL - financial and single audit .:. Town of BRINIY BREEZES - financial audit .:. Town of JUPITER POLICE OFFICERS RETIREMENT PLAN - financial audit .:. City of LAUDERHILL GENERAL EMPLOYEES RETIREMENT PLAN - financial audit .:. City of OAKLAND PARK GENERAL EMPLOYEES RETIREMENT PLAN - financial audit .:. City of HOMESTEAD GENERAL EMPLOYEES RETIREMENT PLAN - financial audit .:. City of HOMESTEAD POLICE OFFICERS RETIREMENT PLAN - financial audit .:. City of ELECTED OFFICIALS RETIREMENT PLAN - financial audit I I I Clients served by Management Team with previous Firms; I .:. City of DANIA BEACH - financial, defined benefit pension plans and single audit .:. City "of TAMARAC - financial and single audit .:. City of HIALEAH - financial, defined benefit pension plans and single audit .:. City of PEMBROKE PINES - financial, defined benefit pension plans and single audit .:. City of OAKLAND PARK - financial and single audit .:. City of LAUDERHILL - financial and single audit .:. City of LAUDERDALE LAKES - financial and single audit .:. Town of SOUTHWEST RANCHES - financial audit .:. Town of MIAMI LAKES - financial audit I I The engagement team chosen to serve the City has extensive experience working with governmental entities of similar size and scope. I I I I Our team, based out of our Coral Gables office offers the following advantages: I Experienced Personnel On-The"Job: Our Management Team's CPA's average: ~ over 30 years of professional practice 10 in the qovernmental audit field; ,. over 6 years workinQ tOQether as a team I Knowledqeable Team: - Because our team members are devoted to the governmental sector, we are experts in the intricacies of governmental accounting and the unique issues affecting your City. I ManaQement Involvement: Unlike most firms: ,. the professionals assigned to your engagement focus the majority of their time working exclusively with governmental organizations ~ experienced Firm Manaqement (Partners) will dedicate 100 percent of their time to your engagement ~ because of our experience, we will use your staffs time efficiently and serve as a valuable resource for your City: your personnel will not waste time "traininq our personnel" I Please note the firm is assigning the following Team Members to your Engagement: I 1 1 1 2 5 Client Service Quality Control Partner Engagement Partner Senior Accountants Total Key Team Members I I We humbly ask you to compare the expertise of our Engagement Team to our peer competition assigned teams. We are confident you will not see another firm assigning our level of experience to your engagement. I On-Site Decision Makers: Unlike most other firms, our partners are on-site during the engagement. This ensures that any audit issues will be resolved efficiently and timely since the key individuals of the engagement will be on-site during the audit. I Smooth Transition: transition will be smooth, with minimal disruption of the City's staff and operations. We can guarantee this due to our engagement team's governmental audit experience. Satisfied Clients: We have included references for several municipalities which were audited by our Partner's. We have also included several letters of recommendations. I Immediate Service Responsiveness: Accessible to Clients 7 days a week regarding ANY comments, questions, or concerns. I Timely Deliverv of Services: We understand the importance of completing the audit and issuing the audited financial statements in a timely manner and will work closely with you and your staff to exceed your expectations. I Fees: We recognize that engaging an accounting firm is an important investment of the City. You can expect that we are competitively priced and that your investment in us will add value to your City. I We will perform an annual audit of the financial statements of the City of Sunny Isles Beach for the fiscal years ending September 30, 2007, 2008 and 2009, in order to express an opinion on the fairness with which they present net assets and changes in net assets in conformity with accounting principles generally accepted in the United States of America, and an audit to determine whether operations are properly conducted in accordance with legal, regulatory requirements, applicable OMB standards, Federal Single Audit Act of 1997 and the Florida Single Audit Act. We will perform limited procedures on the schedule of expenditures of federal awards as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit Organizations, and supporting schedules and verify that any outstanding audit findings from prior years have been cleared. I We commit to perform the work within the time period described in your request for proposal. I I I 2 I I The firm will be involved throughout the entire year, by providing assistance in resolving issues and informing the City of new evolving issues and related matters of importance. I I We recognize that the City is an important entity in Miami-Dade County and its responsibilities create a challenging and dynamic organization. We are confident that our firm is eminently qualified to meet the challenges of this engagement and to deliver quality audit services to your organization. The City of Sunny Isles Beach would be a valued client of our firm and we pledge to commit our resources to provide the level and quality of services that will fit the City's needs, and exceed the City's expectations. I I. This proposal is a firm and irrevocable offer for ninety (90) days. 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 items or with the City. We also certify that our proposal is in all respects fair, without outside control, collusion, fraud, or otherwise illegal action, and was prepared in good faith. Only the person(s), company or parties interested in the project as principals are named in the proposal. The firm has no existing or potential conflicts, and anticipates no conflicts during the engagement. I Nestor Caballero, CPA, is authorized to make representations for and to bind the firm. He can be reached at (305) 662-7272. His e-mail addressisnestor@acc-cpa.com. Please do not hesitate to call if you have any questions about the information provided in this proposal. We thank you for considering our firm's qualifications and experience and look forward to serving you. Very truly yours, I I ballero & Castellanos, L.L.P. I I I I I I I I I I 3 I I I SECTION I - GENERAL QUALIFICATIONS AND FIRM'S EXPERIENCE I Alberni Caballero & Castellanos, L.L.P. (AC&C) is a Certified Public Accounting firm with five partners and over twenty professionals that work together on a continual basis with the main focus of serving the public sector. The firm is a professional limited liability partnership that provides comprehensive financial and compliance auditing, attestation and accounting, and other management consulting services. AC&C was formed through the merger of Alberni Caballero & Alberni, PA, a certified public accounting firm which has served the South Florida area for over 30 years and Caballero & Castellanos, P.L. a local firm with offices in Dade and Broward County which exclusively serves the public sector and whose partners bring over 10 years of local government audit experience. I I Our industry areas of specialization include: . Governmental Organizations . Public Housing Agencies . Non Profit Organizations . Local Government Retirement Plans . Mortgage Banking I Our firm's philosophy is to provide our clients with the same high level of service they would expect from a large national firm, but with the personal attention of a small local firm. All of our audit clients have direct access to our partners and we have committed to have our partners involved throughout all phases of the audit. In other words, our partners are on the field during the audit and all the decision making is on site. I Our professional staff is prepared and fully qualified to help you determine your realistic present and future goals, and assist you in reaching them. We combine invaluable experience gained at some of the most highly regarded international accounting firms, with the kind of personal service these firms can seldom provide. I Every member of our professional staff at the firm is here because they combine outstanding accounting qualifications with proven communication skills and depth of character. Our governmental audit partners and staff are actively involved with recognized standard-setting organizations at the national level (Government Finance Officers Association), state level (FGFOA) and the local level (League of Cities). The firm is also a member of the AICPA Governmental Audit Quality Center, which holds our firm to a higher standard of quality. I Independence I I Alberni Caballero & Castellanos, L.L.P. affirms that we meet the independence requirements of our professional standards, Activities and Functions published by the U.S. General Accounting Office, GAS or any subsequent amendments or superseding revisions. As defined by standards generally accepted in the United States of America, we are independent of the City. We further certify that Alberni Caballero & Castellanos L.L.P. and their partners and employees, are independent of the City, have not performed any professional services for the City and have no conflict of interest. We will give written notice to the City of any professional relationships entered into during the period of this engagement. I State Licensing Certificate from the State of Florida I The firm is properly registered/licensed State of Florida professional limited partnership. All assigned key professional staff are properly registered/licensed to practice public accounting in the State of Florida. Insurance I The firm can and will comply with the insurance requirements as enumerated in the City's RFP. I I I I 4 II I I SECTION I - GENERAL QUALIFICATIONS AND FIRM'S EXPERIENCE Size and Number of Staff The following chart reflects our current organizational structure: I TOTAL PUBLIC PROFESSIONAL TOTAL SECTOR STAFF CPA'S STAFF Partners 5 5 4 Manager/Seniors 4 0 4 Staff accountants 8 0 6 I Per diem employees I 10 I 4 I 10 Total I 27 I 9 I 24 I I I (*) Total of 3 CPA's assigned to the City's Engagement (3 Partners) and two Senior Accountants I Similar Engagements With Other Government Entities I The following is a list of five audit engagements performed that are similar to the City's engagement described in its request for proposal. Alberni Caballero & Castellanos, L.L.P. (through Caballero & Castellanos, P.L.) or its Partners were the principal auditors of the engagement. (See APPENDIX A: LETTERS OF RECOMMENDATION) City of Miami Springs -9/30/06, 9/30/05 and 9/30/04- CAFR, 2 Defined Benefit Pension Plans, Federal Single Audit. Contact: William Alonso, Finance Director (305) 608-6677. (Engagement Partner- Nestor Caballero, CPA; Senior Accountants- Martha Romero and Yannick Ngendahayo) 450 Staff Hours I I City of South Miami - 9/30/06, 9/30/05 and 9/30/04- CAFR, 2 Defined Benefit Pension Plans, Federal Single Audit. Contact: Eliza Rassi, Finance Director (305) 663-6343. (Engagement Partner- Nestor Caballero, CPA Senior Accountants- Martha Romero and Yannick Ngendahayo) 550 Staff Hours I City of Hialeah Gardens- 9/30/06- Defined Benefit Pension Plan, Federal Single Audit. Contact: Marcos Piloto, Finance Director (305) 819-5310. (Engagement Manager- Nestor Caballero, CPA Senior Accountants- Martha Romero and Yannick Ngendahayo) 400 Staff Hours I Village of Biscayne Park - 9/30/06 and 9/30/05, Federal Single Audit. Contact: Holly Houghdahl, Finance Director (305) 899-8000. (Engagement Manager- Nestor Caballero, CPA; Senior Accountant- Martha Romero) 250 Staff Hours I Village of EI Portal - 9/30/06 and 9/30/05, Federal Single Audit. Contact: Jason Walker, Village Manager (305) 795- 7880. (Engagement Manager- Nestor Caballero, CPA; Senior Accountant- Yannick Ngendahayo) 250 Staff Hours I GFOA Certificate Of Achievement For Excellence In Financial Reporting Program I Our governmental audit partners are proud to have assisted all the governmental clients who have participated in the GFOA Certificate of Achievement for Excellence in Financial Reporting Program (CAFR) qualify for this award. This certificate program is recognized as the highest award in governmental financial reporting. The Certificate of Achievement has been awarded on all of the financial statements our Partners have reported in the certificate program. In addition, two of our partners participate in the GFOA's CAFR review program. I I I 5 I I SECTION 1- GENERAL QUALIFICATIONS AND FIRM'S EXPERIENCE I Report Of Peer Review Alberni Caballero & Alberni P.A.'s and Caballero & Castellanos, P.L.'s peer review reports are presented as APPENDIX E. PEER REVIEW REPORTS. I Participation in Quality Control Review Program I Alberni Caballero & Castellanos, L.L.P. is a member of the Government Audit Quality Center and as such must comply with a comprehensive quality control process specific to governmental engagements. Results of State and Federal Reviews I Alberni Caballero & Castellanos, L.L.P. nor any of the firms included in the merger have ever been subjected to a federal or state desk review of any of its workpapers. I Public Entity Crime Statement Neither Alberni Caballero & Castellanos, LLP nor any of its merger firms, partners, employees, members or agents who are active in the management of the entity, have ever been charged with or convicted of a public entity crime. I Disciplinary Actions or Pending Lawsuits I Neither Alberni Caballero & Castellanos, LLP nor any of its merger firms, or partners have ever been involved in any litigation, proceeding or disciplinary action. No complaints have ever been filed with the Florida Department of Business and Professional Regulations or any oversight bodies regarding our firm or any of its partners. Equal Employment Opportunity I The firm has policies, which require that all employment related activities be conducted in a manner, which attracts, retains and motivates employees without regard to race, religion, color, national origin, sex, age, or handicap. All employees are responsible for helping our firm maintain a climate, which provides equal opportunity for all. I I Electronic Workpapers I In keeping with our philosophy of providing services that you would expect from a large national firm, we use the latest paperless audit software and networking on our audit engagements. Electronic workpapers continue to improve productivity and efficiency in the audit process. These efficiencies are passed on to our clients through lower fees and time savings. The City's workpapers are scanned or imported directly into our audit programs saving the City time and the cost of copying or printing such workpapers. Year-Round Involvement I Our involvement with the City and its finance department does not end when our financial statements are issued. We remain involved with the City through our monthly reviews of the minutes of the City's commission meetings and communications regarding new accounting standards that have been issued that may affect future audits. Our year- round involvement ensures a timely and efficient audit and helps us and the City address any issues before the audit. I I I I I 6 I I SECTION 11- TEAM QUALIFICATIONS AND EXPERIENCE Management Team of CPAs' & Years Of Governmental Experience I Pedro Alberni, CPA (Client Service Partner) 30 Years of Total Audit Experience I Elias Castellanos, CPA (Quality Control Partner) 14 Years of Total Governmental Experience I Nestor Caballero, CPA (Engagement Partner) 9 Years of Total Governmental Experience I Martha Romero (Senior Accountant) 5 Years of Total Not For Profit and Governmental Experience Yannick Ngendahayo (Senior Accountant) 3 Years of Total Governmental Experience I Experience In Governmental Engagements I The engagement team that will serve the City is composed of individuals who understand governmental entities and possess the technical skills and experience necessary to deliver quality audit services. Our team will include One Client Service Partner, One Quality Control Partner, One Engagement Partner, Two Senior Accountants and accounting staff as needed. I These professionals have a wide variety of experience in providing auditing, accounting and advisory services to governmental entities. In addition to their experience and knowledge, the members of the engagement team have the functional and technical skills to ensure the performance and completion of a comprehensive engagement. I I Our engagement team of CPAs averaaes over 14 years of professional practice, 10 in the aovernment audit field and the performance of financial and manaaerial services for aovernmental entities. Unlike other firms' personnel, these individuals spend most of their time working with governmental and public sector agencies. This means they will not be wasting your time asking irrelevant questions and indeed, will be a fertile and beneficial resource to your organization. I Management Team I The management team who will serve the City is composed of individuals who: . are licensed CPAs; · possess a comprehensive understanding of governmental entities; · are highly experienced in working with a variety of public sector clients; · demonstrate the technical skills necessary to deliver quality financial and managerial services; and · average in excess of 10 years of professional practice in governmental accounting. I Client Service Partner The Client Service Partner determines that the firm's resources are assigned properly to perform the engagement. I Pedro Alberni, CPA will be the Client Service Partner. Mr. Alberni is the Managing Partner-in-charge of our Coral Gables Office. He has over 30 years of audit experience. I Quality Control Partner The engagement will be under the direct supervision of a Quality Control Partner. The Quality Control 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. I .performing an overriding review of all deliverables; .resolving technical accounting and reporting issues; and .reviewing and approving reports, management letters, and other engagement products. I I 7 I I SECTION 11- TEAM QUALIFICATIONS AND EXPERIENCE I Elias Castellanos, CPA will be the Quality Control Partner and a designated "KEY" Employee. Mr. Castellanos has extensive experience in governmental audits. He has performed governmental audits for the last 14 years. He will devote a majority of his time to the completion of the work. I Engagement Partner The Engagement Partner will be assigned full time and will work closely with the Quality Control Partner. The Engagement Partner has direct responsibility for engagement policy, direction, supervision, security and communication with the City's personnel. He will also ensure that the deliverables and all other reports are prepared in accordance with professional standards and firm policy. I He will be responsible for all phases of the engagement and he will be: . coordinating all services with the City; . directing the development of the overall engagement approach and plan; . supervising staff; . planning the engagement; . preparing or modifying project plans, as needed; . evaluating internal control and assessing risk; . reviewing work product for compliance with the City's requirements and completeness; . communicating with the City the progress of the engagement; and . reviewing deliverables and all reports issued by the firm for accuracy and completeness; . and that they are prepared in accordance with professional standards and firm policy; . leading meetings and discussions with key management personnel. I I I I Nestor Caballero, CPA will be the Engagement Partner and a designated "KEY" employee. Mr. Caballero was selected for his experience with governmental engagements and more specifically for his experience with audits in similar scope to the City of Sunny Isles Beach's audit. I Senior Accountants Two Senior Accountants will be assigned full-time to the engagement. The Senior Accountants will be responsible for the overall performance of the work in the field and assisting the Engagement Partner in the actual performance of the engagement. I Martha Romero and Yannick Ngendahayo will be the Senior Accountants. Mrs. Romero and Mr. Ngendahayo were selected for their extensive knowledge in governmental and nonprofit accounting and for their auditing experience. They will devote 100% of their time to the completion of the work. I Staff Accountants Staff accountants will be utilized as required by the Engagement Partner. They perform less complex audit procedures under the supervision of the Engagement Partner and the Manager. I Note: All CPA's assigned to the audit have properly maintained CPE in governmental accounting and auditing as required by the State Board of Accountancy. I The firm's audit team who will serve the City is composed of individuals who understand government entities and possess the technical skills and experience necessary to deliver quality audit services. Our audit team will include THREE Partners, two who have been involved TOGETHER in the audits of government entities for at least 6 years. All of the team members are CPAs. I We humbly ask you to compare the level of experience and expertise we have assigned to your engagement to the other firms submitting proposals. Compare the experience of personnel assigned by those firms FULL-TIME (on-site) to OURS. I I I I 8 I I I I I I I I I I I I I I I SECTION 11- TEAM QUALIFICATIONS AND EXPERIENCE Resumes PEDRO ALBERNI, CPA e.mail: pedro@acc-cpa.com Position CLIENT SERVICE PARTNER Education Bachelor Degree, Accounting, 1973 Florida International University Professional History .:. CPA, in Florida since 1977, Certificate No. AC06301 .:. Partner of Alberni Caballero & Castellanos, LLP .:. Partner of Alberni Caballero & Alberni, P.A., - 1977-2006 Clients Served A partial list of audit clients served during the last three years follows: .:. The Children's Trust of Miami Dade County .:. City of Miami Springs .:. City of South Miami .:. City of Hialeah Gardens .:. Village of EI Portal .:. Village of Biscayne Park .:. Town of Briny Breezes .:. Greencross Health Systems .:. Hayhurst Mortgage, Inc. & Subsidiary, Inc. (HUD) .:. Morning Star Funding Corporation (HUD) .:. Dade County High Tech School, Inc. (ED) Professional Education Educational courses taken during the last three years. Course Hours Taxes and other 46 Accounting, auditing and other 80 Total Hours 126 Professional.:. Member, American Institute of Certified Public Accountants Associations .:. Member, Florida Institute of Certified Public Accountants I I I I 9 I I I SECTION 11- TEAM QUALIFICATIONS AND EXPERIENCE ELIAS CASTELLANOS, CPA e-mail: elias@acc-cpa.com Position I Education I Professional History I I Clients Served I I I I I I I I Professional Education I Professional Associations I I I QUALITY CONTROL PARTNER - "KEY" MEMBER Florida International University, BA, Accounting, 1992 .:. 14 years of total Professional Practice Experience .:. CPA, in Florida, March 1995, No. 27624 .:. Partner, Alberni Caballero & Alberni, LLP .:. Principal, Caballero & Castellanos P.L.- 2004 to 2006 .:. Senior Audit Manager, Local CPA Firm- 2002-2004 .:. Director of Operations - Quality Assurance - HUD - REAC, Washington, DC .:. Senior Audit Manager - KPMG L.L.P. Washington DC .:. Audit Supervisor - Regional CPA Firm .:. Senior Auditor, Local CPA Firm A partial list of audit clients served follows: .:. City of Miami Springs- 9/30/06, 9/30/05, 9/30/04, 9/30/03, and 9/30/02 .:. City of South Miami 9/30/06, 9/30/05, and 9/30/04 .:. City of Hialeah Gardens 9/30/06 .:. Village of Biscayne Park 9/30/06, 9/30/05, 9/30/02 and 9/30/01 .:. Village of EI Portal 9/30/06 and 9/30/05 .:. Town of Briny Breezes 9/30/06 .:. Performing Arts Authority (Broward Center for the Performing Arts) 9/30/06 .:. The Hialeah Housing Authority 12/31/06,12/31/05 and12/31/04 .:. The Homestead Housing Authority 12/31/06 and 12/31/05 .:. Orlando Housing Authority 3/31/06 and 3/31/05 .:. Tampa Housing Authority 3/31/05 .:. Palm Beach County Housing Authority 9/30/06 and 9/30/05 .:. West Palm Beach Housing Authority 3/31/06 and 3/31/05 .:. Riviera Beach Housing Authority 9/30/06, 9/30/05, 9/30/04 and 9/30/03 .:. Lee County Housing Authority 9/30/06 and 9/30/05 .:. Venice Housing Authority 3/31/06 and 3/31/05 .:. Punta Gorda Housing Authority 3/31/06 .:. City of Dania Beach 9/30/03 and 9/30/02 .:. City of Lauderdale Lakes 9/30/03 and 9/30/02 .:. City of Hialeah 9/30/98 and 9/30/97 .:. City of North Miami 9/30/99, 9/30/98 and 9/30/97 .:. Town of Golden Beach 9/30/99 and 9/30/98 .:. Village of Pinecrest 9/30/99 and 9/30/98 .:. City of Florida City 9/30/98 .:. City of Sweetwater 9/30/95 and 9/30/94 Educational courses taken during the last three years. Course Hours Government Accounting and Auditing Total Hours 120 120 .:. Member, Florida Institute of Certified Public Accountants .:. Member, American Institute of Certified Public Accountants .:. Member, Florida Government Finance Officers Association .:. Member, Government Finance Officers Association .:. Associate Member, Dade and Broward Florida League of Cities 10 I I SECTION 11- TEAM QUALIFICATIONS AND EXPERIENCE I NESTOR CABALLERO, CPA e-mail: nestor@acc-cpa.com Position I Education I Professional History I I Clients Served I I I I I I I Professional Education I I Professional Associations I I I ENGAGEMENT PARTNER - "KEY" MEMBER Masters Degree, Taxes, 1997, Florida International University, Bachelor Degree, Accounting, 1995, Florida International University -:- 9 years of total Professional Practice Experience -:- CPA, in Florida, August 1997, No. 30376 -:- Partner of Alberni, Caballero & Castellanos, P.L. -:- Principal of Caballero & Castellanos P.L.- 2004 to 2006 -:- Audit Manager Local CPA Firm- 2002-2004 -:- Audit Supervisor of Regional CPA Firm- 1996 to 2001 A partial list of audit clients served follows: -:- City of Miami Springs 9/30/06, 9/30/05 and 9/30/04 -:- City of South Miami 9/30/06, 9/30/05 and 9/30/04 -:- City of Hialeah Gardens 9/30/06 -:- Village of Biscayne Park 9/30/06, 9/30/05, 9/30/02 and 9/30/01 -:- Village of EI Portal 9/30/06 and 9/30/05 -:- Town of Briny Breezes 9/30/06 -:- Performing Arts Authority (Broward Center for the Performing Arts) 9/30/06 -:- City of Tamarac - 9/30/03 -:- City of Oakland Park - 9/30/03 and 9/30/02 -:- Town of Miami Lakes - 9/30/03,9/30/02 and 9/30/01 -:- Town of Southwest Ranches - 9/30/03,9/30/02 and 9/30/01 -:- City of Pembroke Pines - 9/30/00 through 9/30/96 -:- City of Hialeah - 9/30/01, 9/30/00 and 9/30/99 -:- City of Homestead- 9/30/00 and 9/30/99 -:- Town of Lauderdale By The Sea - 9/30/98, and 9/30/97 -:- South Miami Redevelopment Agency 9/30/06, 9/30/05 and 9/30/04 -:- The Children's Trust 9/30/03 -:- The Hialeah Housing Authority 12/31/06,12/31/05 and12/31/04 -:- The Homestead Housing Authority 12/31/06 and 12/31/05 -:- Orlando Housing Authority 3/31/06 and 3/31/05 -:- Tampa Housing Authority 3/31/05 -:- Palm Beach County Housing Authority 9/30/06 and 9/30/05 -:- West Palm Beach Housing Authority 3/31/06 and 3/31/05 -:- Riviera Beach Housing Authority 9/30/06, 9/30/05, 9/30/04 and 9/30/03 -:- Lee County Housing Authority 9/30/06 and 9/30/05 -:- Venice Housing Authority 3/31/06 and 3/31/05 -:- Punta Gorda Housing Authority 3/31/06 Educational courses taken during the last three years. Course Hours Government Accounting and Auditing 120 Total Hours 120 -:- Member, American Institute of Certified Public Accountants .:. Member, Florida Institute of Certified Public Accountants .:. Member, Government Finance Officers Association -:- Member, Special Review Committee -Government Finance Officers Association -:- Member, Florida Government Finance Officers -:- Member, Dade/Broward Government Finance Officers Association -:- Member, Cuban American Certified Public Accountants Association -:- Associate Member, Dade & Broward League of Cities 11 I I I SECTION 11- TEAM QUALIFICATIONS AND EXPERIENCE MARTHA ROMERO a-mail: martha@.acc-cpa.com Position I I I Education Professional History Clients Served I I I I I I I Professional Education Professional Associations I I I I I I SENIOR ACCOUNTANT .:. Bachelor Degree, Accounting, 2005 Florida International University .:. Bachelor Degree, Accounting, 1996 Universidad Mayor De San Andres La-Paz Bolivia .:. Senior of Alberni Caballero & Castellanos, LLP .:. Assistant to Administrator (Finance) Large not for profit agency A partial list of audit clients served during the last two years follows: .:. City of Miami Springs- 9/30/06 and 9/30/05 .:. City of South Miami 9/30/06 and 9/30/05 .:. City of Hialeah Gardens 9/30/06 .:. Village of Biscayne Park 9/30/06 and 9/30/05 .:. Village of EI Portal 9/30/05 .:. Town of Briny Breezes 9/30/06 .:. Performing Arts Authority (Broward Center for the Performing Arts) 9/30/06 .:. South Miami Redevelopment Agency 9/30/06 and 9/30/05 .:. City of Oakland Park General Employees Retirement Plan 9/30/06 .:. The Hialeah Housing Authority 12/31/06 and 12/31/05 .:. Orlando Housing Authority 3/31/06 .:. Palm Beach County Housing Authority 9/30/06 and 9/30/05 .:. West Palm Beach Housing Authority 3/31/06 .:. Riviera Beach Housing Authority 9/30/06 and 9/30/05 Educational courses taken during the last two years. Course Hours Government Accounting and Auditing 80 Total Hours B..Q .:. Member, Florida Government Officers Association 12 I I I SECTION 11- TEAM QUALIFICATIONS AND EXPERIENCE YANNICK NGENDAHAYO e-mail: vannick@acc-cpa.com Position I I Education Professional History I Clients Served I I I I I I Professional Education I I Professional Associations I I I I I SENIOR ACCOUNTANT .:. Bachelor Degree, Accounting, 2005 Johnson & Wales University .:. Senior of Alberni Caballero & Castellanos, LLP .:. Assistant to Finance Director- Village of Biscayne Park Florida A partial list of audit clients served during the last year follows: .:. City of Miami Springs 9/30/06 .:. City of South Miami 9/30/06 .:. City of Hialeah Gardens 9/30/06 .:. Village of EI Portal 9/30/06 and 9/30/05 .:. South Miami Redevelopment Agency 9/30/06 .:. Town of Jupiter Police Officers Retirement Plan 9/30/06 .:. City of Lauderhill General Employees Retirement Plan 9/30/06 .:. City of Homestead General Employees Retirement Plan 9/30/06 .:. City of Homestead Police Officers Retirement Plan 9/30/06 .:. City of Homestead Elected Officials Retirement Plan 9/30/06 .:. Virginia Key Beach Park Trust 9/30/06 .:. Performing Arts Authority (Broward Center for the Performing Arts) 9/30/06 .:. The Hialeah Housing Authority 12/31/06 .:. Orlando Housing Authority 3/31/06 .:. Palm Beach County Housing Authority 9/30/06 .:. West Palm Beach Housing Authority 3/31/06 .:. Riviera Beach Housing Authority 9/30/06 .:. Lee County Housing Authority 9/30/06 .:. Venice Housing Authority 3/31/06 .:. Punta Gorda Housing Authority 3/31/06 Educational courses taken during the last year. Course Government Accounting and Auditing Total Hours Hours 24 24 .:. Member, Florida Government Officers Association 13 I I SECTION 11- TEAM QUALIFICATIONS AND EXPERIENCE I Quality Control System I The firm continually monitors performance to ensure the highest quality of services. Under the supervision of our audit partners, an audit manager/supervisor is responsible for monitoring quality control of all appropriate engagements. The review process begins with the manager/supervisor. In engagements where a staff is assigned, the manager/supervisor is responsible for the initial review of his workpapers as well as the workpapers prepared by the staff. I I Subsequent to this review, a partner is responsible for the comprehensive review of the engagement working papers. The partner is responsible for ensuring that the issues identified within the audit plan have been properly addressed. The partner will also review the financial statements to ensure that all material events and transaction have been properly reported and comply with GMP requirements. I A second partner performs an overall review of the workpapers and financial statements to provide a "second set of eyes" and identify any areas that need strengthening prior to issuance. Quality of the Staff Over the Term of the Engagement I The Client Service Partner, Quality Control Partner, Engagement Partner and Senior Accountants will be the 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, managers, senior accountants or staff, we will first attain the City's express prior 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 your needs, if required. We can assure the highest professional qualifications of the assigned staff we will utilize for the City's engagement. I I In addition to our governmental focus, it is firm policy that all professional employees exceed the minimum .CPE credits required for governmental audits. We currently have an in-house continuing education program which provides approximately 120 credit hours of governmental and not-for-profit accounting and auditing every two years to all of our audit staff. In addition, our staff regularly attends conferences sponsored by the FICPA and the Florida Government Finance Officers Association. Further, because we are growing and expanding, 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 CPA's with proven governmental auditing experience. I I Workload I Our engagement team's work load is organized in such a way that the additional activities brought about by this engagement will not impact our current commitments to other 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 to all of our other clients. I I I I I I 14 I I I I I I I I I I I I I I I I I I I SECTION III - SPECIFIC AUDIT APPROACH Audit Plan Our approach to the audit engagement integrates traditional auditing techniques with 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 the three phases which are shown on the adjacent Chart. STRATEGIC PLANNING OBTAIN KNOWLEDGE OF OPERATIONS REVIEW INTERNAL CONTROLS IDENTIFY AND RESOLVE POTENTIAL AUDIT PROBLEMS PREPARE AUDIT PROGRAMS EXECUTION OF AUDIT PLAN PERFORM ANAL YTICAL REVIEW PERFORM TESTS OF ACCOUNT BALANCES AND TRANSACTIONS TEST COMPLIANCE WITH LAWS AND GRANTS REVIEW PRELIMINARY CONCLUSIONS WITH MANAGEMENT COMPLETION AND DELIVERY COMPLETE AUDIT PROCEDURES DRAFT FINANCIAL STATEMENTS REVIEW REPORTS WITH MANAGEMENT PRESENT FINAL REPORT 15 I I SECTION III - SPECIFIC AUDIT APPROACH Phase I - Strategic Planning I A thorough understanding of your organization and its operating environment is essential for the development of an audit plan for an efficient, cost effective audit. During this phase, the engagement partner and audiUmanager will meet with appropriate personnel to obtain and document our understanding of your operations and, at the same time, give you the opportunity to express your expectations with respect to the services that we will provide. Our work effort will be coordinated so that there will be minimal disruption to your staff. I During this phase we will perform the following activities: I · Review the regulatory, statutory and compliance requirements within which the City operates. This will include a review of applicable federal laws, the City's ordinances, state statutes, County and City requirements and resolutions, debt instruments, contracts, other agreements, and minutes of meetings of the commission and various committees. · Review major sources of information such as budgets, organization charts, procedures manuals, financial systems, and management information systems. · Determine the procedures necessary with regard to opening balances, and obtain reasonable assurance concerning the consistency of application of accounting principles between the year being audited and the preceding year. . Review the working papers of the predecessor auditor. . Obtain and document an understanding of the City's internal control structure, including making an assessment of audit risk. · Consider the methods that the City uses to process accounting information which influence the design of the internal control structure. This understanding includes knowledge about the design of relevant policies, procedures, and records, and whether they have been placed in operation by the City. · 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. I I I I I Phase II - Execution of Audit Plan I 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. Tasks to be performed in Phase II include, but are not limited to the following: . I · Analytical procedures are applied in this stage of the audit to assist in planning the nature, timing, and extent of auditing procedures used to obtain evidential matter for specific account balances or classes of transactions. · Perform substantive tests of account balances and transactions. Samples will be drawn of major transaction systems, including cash disbursements, cash receipts, purchases, and payroll. · Perform tests of compliance with laws, regulations, contracts, and grants. · Review test results and preliminary conclusions. I I I I I I I 16 I I SECTION III - SPECIFIC AUDIT APPROACH Phase III - Completion and Delivery 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 commission to discuss our report and address any questions they may have. I Audit Management Plan I Our audit approach is to develop a specific audit action plan tailored to the individual needs of our client. For each audit we develop the most efficient combination of audit techniques selected from the following methodologies. I Auditing Standards promulgated by the American Institute of Certified Public Accountants provide guidance for auditors in assessing the internal control structure for the purpose of the audit. As auditors, we consider the internal control structure which consists of the following five elements. I The Control Environment The control environment includes the management philosophy, operating style, organizational structure, functions of various boards and committees, methods of assigning responsibility, personnel policies and procedures, and various other factors that reflect the City's concern with control in the area of finances. We will read the various documents that impact this environment, and talk to employees to see how these ideologies are portrayed at various levels. I Risk Assessment After understanding the control environment, we will identify and assess the relevant risks to achieving the objectives of the financial system. I Control Activities The control procedures are integrated in the components of the control environment and accounting system. While gaining an understanding of those areas, we will assess the control procedures that the City has in place. Consideration will also be given to potential improvements to the efficiency and effectiveness of the procedures in place. Any suggestions for improvement will be communicated to the appropriate person(s). I I Information and Communication We will document the formal and informal information flow relating to the processing and recording of financial transactions. I Monitoring In this final component we will review City practices that are in place to monitor the performance of its internal control structure. Sampling Considerations I Our professionals will utilize sampling methodologies designed to ensure effective audit procedures are applied in the most efficient manner. I Sampling Techniques We will utilize representative audit sampling procedures with respect to substantive tests of details and tests of controls and tests of compliance, 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 principal corroborative evidence of identified controls. I I Statistical and Non-statistical Sampling Substantive tests of details 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. I I I 17 I I SECTION III - SPECIFIC AUDIT APPROACH I 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 substantive testwork, sample size will be a function of population, materiality, and risk factors. I Experience In Information Systems And Technology and Extent of Use of EDP Software in the Engagement I Our approach to auditing integrates traditional auditing techniques with a total system concept. We are actively committed to using computer-based audit techniques. Our knowledge of information systems (IS) and the use of paperless audit software yield significant savings in the time required to complete an audit. I 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. 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. I 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. I 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. I Our IS expertise, combined with extensive auditing and consulting experience mean that we understand the technical intricacies of complex information systems in the context of real-world application. I Utilizing this expertise we will be able to: I .:. 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 I Analytical Procedures I Statement of Auditing Standards on Analytical Procedures, provides guidance on the use and extent of analytical procedures in all audits. I Analytical procedures are required in the planning and overall review stages of the audit, and are used in the following areas: I 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 City for collecting such monies. I I 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. I I 18 I I SECTION III - SPECIFIC AUDIT APPROACH I 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 I 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. I I A thorough understanding of the internal controls of an organization is critical in planning our audit procedures and providing useful comments and recommendations to the City. We utilize 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. I 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: I .:. Meeting with the City's personnel to discuss operations; and .:. Reviewing internal assessment of internal control I The control overview document helps to ensure that all elements of internal control are considered. I Subsequently, for significant internal control 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. I We have found through our experience that there are two primary methods to test controls. I .:. Documented controls - Tested by reviewing a sample of transactions for evidence that the control was being performed. I .:. Undocumented controls - Tested through inquiry and observation procedures with appropriate department personnel. Laws and Regulations I 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. 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. I I Identifying applicable laws and regulations is fundamental to fulfilling the responsibility of understanding their effects. We will obtain this knowledge through the following sources: .:. Discussion of compliance requirements with the City's officials, including legal counsel. I .:. Identification of compliance matters in statutes, financial ordinances, City's policies, contracts, grants and debt agreements. I .:. Review of City's commission meeting minutes. I 19 I I SECTION III - SPECIFIC AUDIT APPROACH I .:. 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. .:. Our existing knowledge of federal and state laws. I Statistical Samples Offered To Be Performed In The Audit Based On Federal Grant Funds Awarded To The City I During the planning of the Single Audit engagement, we will identify the major programs to be audited pursuant to Circular OMB A-133. As required, the determination will be based on the dollar amount of federal expenditures and the associated program risk. Further, as appropriate, our audit will be planned to provide for a low level of assessed control risk. I I .:. After we have identified the major programs, we will perform appropriate auditing procedures, including tests of controls, tests of compliance with laws and regulations, and substantive testwork. Sampling methodology determination, i.e., statistical, or non-statistical, random, systematic or judgmental selection method, etc., will be based on the auditor experience and judgment. I Description Of Procedures To Be Used To Ensure The Accuracy Of The Statistical And/Or Nonstatistical Samples I To ensure that samples selected for attribute testing (tests of controls and compliance) and variable testing (tests of details/substantive testwork) are "accurate", or valid, all samples will be reviewed and evaluated to ensure that items selected are, I .:. representative of the population so that characteristics of the sample can be reasonably projected to the entire population .:. of adequate size based on internal controls, tolerable error, expected deviations, acceptable confidence levels, etc. .:. from a complete population I Approach To Be Taken In Completing The Single Audit I Our objective in this area is to perform a single audit which meets the needs of the grantor agencies and the requirements of OMB A-133. I In order to achieve this objective, we follow the following techniques: I Planning and Supervision . Inquiry of management regarding identification of the grants subject to single audit . Review of grant documents · Review of OMB Circular A-133 Compliance Supplement · Review of Federal legislation for the enacted laws and regulations . Instruction to staff as to the requirements of the Single Audit . Supervision of staff in the performance of the procedures · Consideration of the effect of computer processing on the nature, timing and extent of auditing procedures I I I I I 20 I I SECTION III - SPECIFIC AUDIT APPROACH I Assessment of Risks . Perform an assessment of engagement risk by considering the level of Federal financial assistance and the nature of the various programs; corresponding consideration of external environments, internal factors, irregularities, illegal acts, fraud and other noncompliance matters. . The single audit is subject to the same risk assessment at the account balance or transaction level made in the financial audit of the entity. The single audit is designed to obtain assurance as to compliance with the grant agreements and the single audit requirements of OMB A-133, while the financial audit is designed to obtain assurance that the financial statements are free of material misstatement. Consequently, the single audit constitutes only a piece of the financial audit. I I Determination of Major Programs . Determine if the City is a low or high risk auditee . Identify the larger Federal programs based on the dollar threshold Identify in A-133 520(b) and label them as Type A programs, with the remaining programs labeled as Type B. . Perform and document risk assessment procedures on each Type A program to identify those that are low risk . Consider the criteria in A-133 when performing the risk assessment on Type B programs . Audit at least all Type A programs not identified as low risk; audit Option 1 - At least half of the high-risk Type B programs over the Type B threshold (if risk was assessed for all Type B programs subject to risk assessment) or Option 2 - At least one high-risk Type B program for each low-risk Type A program; plus programs that are requested in accordance with the requirements in A-133 .215 (c) to be audited as major; audit such additional programs as may be necessary to comply with the percentage of coverage rule I I I Schedule of Expenditure of Federal and State Awards . Perform procedures to determine the Schedule of Federal Awards are presented fairly in all material respects in relation to the City's financial statements taken as a whole . Determine that the City was able to reconcile the amounts presented in the schedule to amounts in the financial statements . Assess the appropriateness and completeness of the City's identification of Federal programs included in the schedule . Determine that the City properly disclosed the basis of accounting and the significant accounting policies used in preparing the schedule I I I Materiality . Determine Materiality based on the major program I Internal Control over Major Programs . For each of the 14 types of compliance requirements (listed in the Compliance Supplement) which are applicable and material to each major program, document an understanding of the 5 components of internal control (Control Environment/Risk Assessment/Control Activities/lnformation and Communication/Monitoring) sufficient to plan the audit to support a low level of control risk . Plan the testing of internal control . Make a sample selection to test internal control following the sample selection techniques under Sample Sizes and Statistical Sampling . Reach a conclusion as to the effectiveness of the internal control elements and all reportable conditions . If no internal control is found on any of the 14 types of compliance requirements, disclose as a reportable condition I I I Compliance Testing . Identify all applicable and material compliance requirements for the major programs . Perform reasonable procedures to ensure that the compliance requirements are current . Make a sample selection following the sample selection techniques under Sample Sizes and Statistical Sampling . Identify all findings and questioned costs related to noncompliance with the provisions of laws, regulations, contracts, or grant agreements related to a major program I I I I 21 I I I I I I I I I I I I I I I I I I ~I SECTION III - SPECIFIC AUDIT APPROACH Level Of Staff And Budgeted Number Of Hours PROCEDURES ~ Ql c: 1:: l'll Q", "0 ~ ... c: o U ~ l'll :l a ... c: Ql E Ql Cl l'll Cl c: w ~ Ql c: 1:: l'll Q", .l!l c: .fl c: :l o CJ CJ <( ~ .S! c: Ql en PRELIMINARY PLANNING Preliminary discussions - entrance meetings T T Obtain understanding of service objectives T T T Meet with predecessor auditor and review prior audit workpapers T T Prepare audit planning memorandum T Identify significant issues, review, evaluate and document internal controls T T T Assess risk T Develop detailed audit programs T PERFORM AUDIT PLAN Test internal controls T T Test compliance with laws, regulations, contracts, grants and the City's policies T T Substantive test of revenues, expenditures, procurement, payroll, etc. T T Review minutes and other agreements T COMPLETION AND DELIVERY I Complete review for subsequent events and obtain management representations T Prepare reports T T Review draft of all reports for subsequent events and obtain management representations T T Issue report on findings and management letter T T Attend meetings with Management and Board, as required T T Appropriate Planning and Utilization of Staff We understand the significance and necessity of proper planning as it relates to performance of a successful and timely audit. An important aspect of proper planning is our Engagement Partner's advance coordination and specific instruction with the Finance Department, allowing an efficient utilization of staff regarding both preparation of supporting schedules and reconciliations, in addition to essential document/record gathering. Identification Of Potential Audit Problems We do not anticipate any audit problems at this time. However, if we do encounter an audit problem we will first gather all relevant facts from the Finance Department and any other key management personnel and department heads of key offices involved. If the problem is unresolved at that point, we will meet with the Audit Committee or City Commission, as applicable. 22 I I CONCLUSION I ALBERNI CABALLERO & CASTELLANOS, L.L.P. IS THE "RIGHT" CHOICE FOR THE CITY OF SUNNY ISLES BEACH I WE PLEDGE WE WILL: I o Provide a qualified and experienced audit team possessing knowledge of the operation and administration of the City of Sunny Isles Beach compliance and legal requirements, and accounting and reporting for operations pursuant to auditing standards and legal requirements I Q 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 I o Provide value and services above and beyond the traditional auditor's "product" - we will "go the extra mile" I o Coordinate with City personnel, to ensure minimum disruption and maximum contribution of City staff I o Develop and maintain open lines of communication with the City to help expedite the audit process and avoid awkward end-of-engagement "surprises" I The partners and staff of Alberni Caballero & Castellanos, L.L.P. are committed to providing the City of Sunny Isles Beach with our resources and specialized expertise. We vow to work closely with the City's staff to accomplish not only those minimum requirements set forth in your Request for Proposal, but to ~ those expectations. I I I I I I I I I 23 ~. - I II I I I I I I I I I I I I I I I I I I I APPENDIX A- LETTERS OF RECOMMENDATION I I I I I I I I I I I I I I I I I I I CITY OF MIAMI SPRINGS Finance Department 201 Westward Drive Miami Springs, FL 33166-5289 Phone: (305) 805-5014 Fax: (305) 805-5037 William Alonso Finance Director August 18, 2004 Nestor Caballero, CPA Elias Castellanos, CPA Principals Caballero & Castellanos 2655 Le Jeune, Suite 500 Coral Gables, Florida 33134 Dear Sirs: I would like to thank you and recognize the work you performed with regard to the agreed upon procedures for the City of Miami Springs during the fiscal year ended September 30, 2004. Your work was essential in helping us correct prior year accounting errors which led to a significant improvement of our City's fund balance. . I would also like -to take this opportunity to thank you in assisting us with the development of a policies and procedures manual for our Finance Department. Once again. thanks for your dedication and I look forward to working with you in the future. I I I I I I I I I I I I I I I I I I I .,- r:ft'fy t!l'Joltth,vflUuni ELIZA B. RASSI Finance Director April 16, 2007 Mr. Nestor Castellanos Alberni, Caballero & Castellanos 4649 Ponce De Leon Blvd., Suite 404 Coral Gables, FL 33146 Dear Nestor: I would like to take this opportunity to thank you for the attention and diligence that you have provided the City of South Miami during the 2005-2006 Financial Audit. It has been a difficult year for the Finance Department in particular due to the many changes in personnel. However, you have made yourself available to me for questions at my request and that I do greatly appreciate. Your professionalism and talent is an asset to your Company. I would have no reservations in recommending your services to other government agencies, and regret that I will not have the opportunity to work with you in this City's next Audit due to the Charter requirements. 6130 Sunset Drive. South Miami, Florida 33143-5093 Tel: (305) 663-6343 . Fax: (305) 663-6346 E-Mail: erassi@cilyofsoulhmiami.net I I I I I I I I I I I I I I I I I I I Town of Southwest Ranches John Canada Town Administrator 6689 S. W. 160 Avenue Southwest Ranches, FL 33331 Phone: (964-434-0008 Fax: (954) 434-1490 Emall: icanada@swranches.ora June 28, 2004 To Whom It May Concern) Letter of Recommendation This letter is provided for Nestor Caballero) CPA, MST. Nestor was the audit manager with Grau & Company) P.A. for the last three (3) years, for the annual audit of the Town. He has been the audit manager for our Town since the Town began. The professional approach and the excellent effort provided by Nestor provided a foundation for our outstanding audit reports. With the assistance provided by Nestor, we believe we will receive the Government Finance Officers Association (GFOA) award for excellent financial reporting. Nestor was always there to explain and assist us, no matter how small the request. We .proudly would recommend Nestor Caballero. Any client of Nestor's will be provided for professionally and with outstanding serviceo p~~ ~hn Canada Town Administrator I I I I I I I I I I I I I I I I I I I ~~" .,,/ fgO/UizYJed u;y 7 l FLORIDA July 1. 2004 Elias Castellanos, CPA Principal Caballero & Castellanos 2655 Le Jeune. Suite 500 Coral Gables, Florida 33134 Dear Elias: I would like to thank you and recognize the work you performed with regard to the audit services for the City of Dania Beach for the fiscal years ended September 30. 2002 and September 30. 2003. Your work was essential in helping us meet our regulatory and self-imposed deadlines for the issuance of the City's Comprehensive Annual Financial Reports, I would also like to take this opportunity to thank you in assisting us in all areas of implementation of GASB Statement #34. In working closely together in implementing the requirements under the new reporting model, I found that you are very knowledgeable of the requirements and that you guidance during the whole process is very much appreciated. You always show great dedication and commitment in getting the job done in a timely and perfect manner. Once again, thanks for your dedication and 1.look forward to working with you in the future. Sincerely, ~J#~~ Patricia Vamey, CGFO C../ ~ Director of Finance "Broward's First City" 100 West Oania Beach Boulevard Oania Beach. Florida 33004 Phone: (954) 924-3600 www.ci.dania-beach.fl.us I I I I I I I I I I I I I I I I I I I CITY OF OAKLAND PARK Vision: "Small Town in the Big City" 3650 N.E. 12th Avenue. Oakland Park, Florida 33334 July 6, 2004 Mr. Nestor Caballero, CPA, MST Caballero & Castellanos, P J ,. 2655 Le Jeune, Suite 500 Coral Gables, FL 33134 Dear Nestor: At this time I would like to commend you for the excellent audit work performed by you. as the Audit Manager of Grau & Company, and your staff for fiscal year 2002 and fiscal year 2003. The City was a new client during fiscal year 2002 then in fiscal year 2003 GASB 34 was implemented. Although both of these type audits can present a challenge, we encountered very little difficulty during these audits. It takes strong "people" skills, as well as the technical knowledge, to make an audit run smoothly. The entire accounting staff was impressed with your knowledge, professionalism and courtesy displayed to our staff. In addition, we found you fully accessible at all times during both audits, and after the audit, to discuss any accounting issues that arose. In closing, it was a positive experience working with you during the City's two audits and I wish you much success in your new endeavor. Sincerely. ,,> A/ / (;;_:rL.d1U,./~~//t/J/~ Catherine Graham Finance Director (1) PRINTED ON RECYCLED PAPER ._ ":.'.,:!.1.U; ~~~r::\ + ^l'~r'.' :, 'lM: :,,:;+ ~,~;:'t''jI' . :..". ~~: ].,,~~.~.- ~."P,. /. /.1) I( 1\) :-- MAYOR Wayne Slaton VICE MAYOR Roberto Alonso COUNCILMEMBERS Marl" -Collins Robert Meador II Michael Pizzi Nancy Simon Peter Thomson TOWN MANAGER Alex Rey TOWN CLERK Beatris M. Arguelles rrOwn Of 'Miami Lakes 6853 Main Street · Miami Lakes. Florida 33014 (305) 364-6100/Fax (305) 558-8511 www.townofmiamilakes.com August 27,2004 To Whom It May Concern: It is with great pleasure that I write this letter of recommendation for Nestor Caballero, CPA, MST. I have known Nestor since 2001 when he was in charge of the audit of the City of Homestead during the City's financial recovery period and I was Deputy Finance Director. Nestor's leadership, technical knowledge and professionalism resulted in the smooth and efficient completion of a fairly complex audit. As Audit Manager for Grau & Company, Nestor did excellent work during the financial audits of the Town of Miami Lakes for the last three fiscal years. This inchided dealing with transitional issues for what was then the newest incorporated municipality in Miami-Dade County, and the early adoption of GASB 34. Nestor is always responsive to the client's needs and provides practical solutions to the issues at hand. In addition to his experience and professional qualifications, Nestor brings to the table good communication skills, a positive attitude and the willingness to help and provide advice. I I I I I I I I I I I I I I I I I I I o/i{fage of r:Biscayne Par/( August 27, 2004 Elias Castellanos, CPA Principal Caballero & Castellanos 2655 Le Jeune, Suite 500 -coraTGable's, FIc>riCia 33134 Dear Elias: On behalf of the Village of Biscayne Park, we would like to thank you and your partner, Nestor Caballero, and recognize the work performed for us with regard to the audit services for the fiscal years ended September 30, 2000 through 2002. Your support and organizational skills were instrumental in helping us. meet our regulatory deadlines for the issuance of the Village's Comprehensive Annual Financial Reports We would also like to take this opportunity to thank you both in assisting us to better understand the new GASB Statement #34 rules and requirements, In working closely together during the audit, we found that your knowledge is only exceeded by your professionalism. You always show great dedication and commitment in getting the job done in a timely and acceptable manner. Once again, thank you for your dedication and look forward to working with you in the future. Sincerely, vL Carmen Spelorzi ViHage Clerk Tom Calderon Finance Director 640 NORTHEAST 1l4th STREET · BISCAYNE PARK, FLORIDA 33161 PHONE: (305) 893~7490 · FAX: (305) 891-7241 I I I I I: I: , Ii , II I i II ! ! II i II I I 11 .1 .1 I I! I I II I ! I I I, .i [ I If <i Staie o' New Medeo OFFICE OF TIlE nAft AlJDlTOlI Do.... ~ MartJDtz, CGFM Stare Auditor Cut M. JIaIcIwIa, CPA. en Deputr Stab Audllor MIy 23. 2001 DavId A. Vargas D'*=r, PHA Finance U.S. Depattrnent dHouslng And UrbIr1 Development Re8I e.t8 CetUr 1280 M8ryfInct Ave. fNI. at' 'Floor WashlnQtCn. D.C. 2002441se Dear David: The New MQ)d/Xl Oftice cUhe State AutJtor \WUId like to think and reccgnizB Elias ea.llanos far ~ Wonnation about auditing.J)lbIIc hDuIIrG BUIhcIfIles to New Mexico hOuSing II.Ithority manager'a. Indepellderll .pU:lIic ~ ~ HUO olIicelt8lf and 1he atatr of the State AudItor'a 0fIIce. Elias' presertaticn W8S ueellent. It helped werycne get en the 88ITl8 page regardng Ihe ac::coUntirG and aucltlng d ~c l'lcUlng. aJlhoritIes. EJIas has a goocI werking knoWledged hcuslngaulhorlty ISsues hit he used during Ihe presertation to answer~ and ~ ~ far thot8 attencIng the Mminar. lhls Wotmatlcn IIWd ~ thllUditingr.d 8CCOUI'ltirG Of ptbIic l'1ouslt1g IUthcritie8In New Meldeo 10 tnII.ft b wile us& d~ dolIara. We want to l'eClOlJl/Z8 Mr. CateUInoIfcr to wmk In dClIng the pnIIIntatIon. .It WIll ~ us .aevI8I8 aome d the ~ we 1ire..hIMnQ vmen.~ pubic hoIMIg ~ . or ~ the wor1< or Independent ~ie &ccOltUntI v.tlc hIM plfbnMtCt th....Udits. . We look fClrwMl to. wor1cIng WIth ~ and EllII In the b.n. If we can be d asIstInce to you. dO not ~ to cantact UI. Sincerely, J:~ MN<TUIFZ raM STATE~DtToR 2113 Waner Qrde. San. Fe. New MuIco 87505-54" (50S) 817.J5Ol1 tHOO) 43W51' Fax (505) 821-3512 htfP:7~1'I I I I I I I I I I I I I I I I I I I I Punta Gorda Housing Authorit): ~l~ .q;affllo- Execllfive Director 414 E. Charlotte Avenue . Punta Gorda, Florida 33950 Fax: (941) 639.1753 · 1941) 639-4344 March 27, 2007 Mr. Nestor Caballero, CPA Alberni Caballero & Castellanos, L.L.P. 4649 Ponce de Leon Blvd, Suite 404 Coral Gables, FL 33146 To Whom It May Concern: It is my great pleasure to recommend the firm of Alberni, Caballero & Castellanos. They were retained by the Punta Garda Housing Authority to perform the audit for our year end. I found Nestor Caballero to be very professional and through in his dealing with my staff and in performing the audit. He made many suggestions on how we might do things to make it easier in the coming year and prepare for our next audit. . I would strongly recommend Mr. Caballero and his firm. . I am sure you will be more than satisfied with their performance. Sincerely, 9-Ar)." 1aM1U Jean Farino Executive Director I I- I I I I I I I I I I I I I I I I I acl-Ho . . March 28, 2007 Mr. Nestor Caballero, CPA Alberni Caballero & Castellanos, L.L.P. 4649 Ponce de Leong Blvd. Suite 404 Coral Gables, FL 33146 Dear Sirs: --- - --_.- --. -_.__.~._-- --".--- -.----_ -- "._ -._____ _,_.__.. __.0--._.., __ This is to commend Mr. Nestor Caballero CPA of the Alberni Caballero & Castellanos L.L.P for the completion of the Homestead Housing Authority's annual audit for FY 2006. Mr. Caballero provided excellent advice and technical assistance to the Housing Authority's accounting staff and was accessible at all times during and after the audit to discuss accounting issues and provide helpful advice. The audit was completed on schedule and I believe that Mr. Caballero would provide the same high quality of service and dedication to every project and highly recommend his services. s~~ Edmund Carrera Executive Director P. O. Box 900278 · Homestead, Florida 33090-0278 Tel. (305) 247-0639 · Fax (305) 248-3347 G:t Equal Housing Oppo~unlly I I I I I I I I I I I I I;~"-" I I I I I I Ilaleah HoullagAathorl1y (5:r =,,~ EXECUTIVE OFFICE 7S EAST 6TH STREET, HlALEAH, FLORIDA 33010 (305) 888-9744 · FAX (305) 887.8738 . RUTII A. TINSMAN, CHAIRPERSON BENJAMIN ALVAREZ, COMMISSIONER AUCIA PEREZ, COMMISSIONER ANA WYDRA, COMMISSIONER ALEX MORALES EXECUTIVE DIRECTOR January 11 , 2006 TO WHOM IT MAY CONCERN: The firm Caballero & Castellanos, P.l. provides audit services to the Hialeah Housing Authority, in order to evaluate our financial statements, as well as our compliance with accounting principles and financial regulations, Our experience with Caballero & Castellanos, P.L. has been very positive. They have conducted the audit in a timely and professional manner. At the same time, they have provided excellent ad- vice for future operations that have proved to be very useful for the improvement of our organization. We have been impress~ with the knowledge, organization and dedication of the firm, so I am con- fident that any company would definitely benefit from the opportunity to engage their audit services. I believe that Caballero & Castellanos, P.L. are perfectly qualified to provide to any organization the professionalism, expertise and performance that we are looking in today's financial environment. I would certainly recommend contracting their servir.es, If you need to contact me, please call 305-888-9744 ext. 1016. Sincerely, ~' ~son lara Director of Finance , F I I I I I I I I I I I I I I I I I I I I ~ Board of Commissioners Riebard Appell Chairpcnon Sam Prost Vice Chairperson OlXll:gC Barr Joseph Dalton Oloria Fclcyn Aundria Shootes Noel White City Council Llai$on- Bill Willsoo Executiw Dim:t.or Peter Lopez, CPA Venice Housing Authority 201 Grove St N. Venke. Florida 34285 Phone: 941....88-3526. Fax: 941....86-0418 February 6, 2006 To Whom It May Concern: We engaged Caballero & Castellanos, P.L. to perform the annual independent audit of our fmancial statements for the year ended March 31, 2005. We did not know any of the partners or principals of the firm at the time that we received their response to our Request for Qualifications. However, our review of the stellar experience of the finn and the positive recommendations that we got from other operators in our industry convinced us that we were looking at a first class team. Mr. Caballero, the audit partner completed the assignment on time and, at the same time, his review was exhaustive. We feel that we had unlimited access to his expertise and that .of other members of the firm during and after the assignment and that, overall, the experience was extremely positive. I am pleased to recommend this firmo (12 Peter Lopez. CPA Exec:ul/ve Director I; I I: , Ii I Ii , II I II I i I II , i Ii i I II I I II I II Ii I II II i I II I II I II .1 Tampa Housing ftuthority BOARD OF f COMMISSIONERS I f ! Robert Shimberg, Chair I Hazel Harvey, Vice Chair f I Sybil Kay Andrews-Wells f , , Karen Peoples ! Toni Riordan Sophia Sorolis Gerald White Jerome D. Ryans PresidenUCEO 1529 West Main Street Tampa, Florida 33607 P. O. Box 4766 Tampa, Florida 33677 (813) 253-0551 FAX: (813) 251-4522 www.thafl.com July 6, 2004 TO WHOM IT MAY CONCERN: The professionals with whom I work value professionalism, ethics, creative ideas, and hardwork. There is no substitute for intelligence, dedication and perseverance. I would like to take this opportunity to recommend Mr. Elias Castellanos, CPA, as an outstanding professional who has contributed to the Tampa Housing Authority achieving a smooth transition towards implementing the new accounting requirements of GASB-34. Additionally, Mr. Castellanos has provided excellent advice on implementing project based management and provided specific training to our finance and accounting staff. His technical knowledge and willingness to teach the same has the great advantage of allowing the organization to learn, thereby creating a lasting effect. I believe that Mr. Castellanos will bring to every project the ability and dedication to structure solutions that are feasible and geared towards implementation. I highly recommend his services. Sincerely, ~~ 1: :ii-It;. ~. Andrew T. Libby, Jr., CPA, CIA, MBA Senior VP and Chief Financial Officer "Building a World-Class Community, One Family and One Neighborhood at a Time" I I I I I I I I I' I I I I". . ;.-.;,.~ ,.~..I. I I I I I I :.;............~,..,~1.~(',.."~..._....,, . . ..~.ANINV~ENT m LA,,"O YOtmi ASPIRA OF FLORIDA, INC. - CORPORATE OFFICE 3650 North Miami Ave. MiamI, Aorida33127-3161 (305)576-8494 Fax (305) 576-6217 Webslle: http://f1.aspira,org September -1, 2004 NestorCaballero, CPA .Principal . Cabatlero'&;Castellanos . 2655~e Jeune, Suite 500 Coral Gables, Florida 33134 Dear Nestor: This is to acknowledge your skills as a Certified Public AC90untant (CPA), and to thank you and recognize the work you performedWifh regard tQthe audit services for ASPIRA qf Florida, Inc., for the fiscal years ended June 30, 2001,2002 and'2003. Your work was essential in helping, us rneetouf. regulatory and self~itnposed deadlines for the issuaflcebfthe Organization's financial 'statements. I woutdalso like to take this opportunity to thank'youin assisting us in all areas relating to financial reporting for Charter Schobls. I found that you are very knowledgeable of the requirements and that your guidance during the whole process is very much appreciated. You ,always show great dedication and commitment 'in getting the job done in a timely and efficient manner. Once again, Jhanks for your dedication and I look forward to working with you in the future: ' Sincerely, ~~ . Raul Martinez President and CEO to , '" A Unlled Way Supported Agency LEADERSHIP THROUGH EDUCATION MIAMI-DADE, BROWARD AND PALM BEACH COUNTIES ~ I I I I I I I I I I I I The Children'sTrust ~;~l~j!l<;~;J~~ Offlcl!rs/Executlve Committee David Lawrence Jr. Chair Dr. WII J. Blechman Vlre Chair Valrla C. Screen Secretary OCtavlo F. Verdeja Treasurer Isabel Afanador ExecutlveCommlttee Mana A. Alonso, Chair Procurement Committee Charlsse Grant, Chair Program Services Committee Or. Steven E. Marcus, Chair Human Resources June 8. 2005 The Board of Directors Or. Nelson Adams Karen Aronowitz Dr. Uncia Blanton George Mo Burgess Dr. Rudy Crew Major James DiBernardo Hon. Kathy Fernandez Rundle Luis A. Gazltua Hon. Norman S. Gerstein Josee Gregoire Sara B. Herald Charles M. Hood 111 lion. 68rbara Jordon Dr, Martin Karp Hon. Cindy S. Lederman Debbie Nogueras Juan-Carlos "J.e.' Planas LIllian RIvera Adam C. Rosen ThomaS Mo Rozek. Dr. Judy Schaechter I Gerald K. Schwartz Hon. Mary Scott RU!;!;e1l -.-flTt!lfflSegal Dr. Jose Vicente T'o wtiom It May Concern: At this time I would like to take the opportunity to commend Mr. Nestor Caballero on his work during our September 30, 2003 audit. He provided excellent advice and technical knowledge to The Children's Trust during the audit. The entire accounting staff was impressed with his knowledge, professionalism and the courtesy he displayed to our staff. In addition, we found him fully accessible at all times during the audit and after the audit, to discuss any accounting issues that arose. We also contracted with Mr. Caballero to assist our staff with fiscal and administrative monitoring of our summer programs and again for our youth experiencing - success programs. Due to Mr. Caballero's high level of expertise, he enabled our staff to complete this monitoring in a timely and professional manner. I believe that Mr. Caballero would provide the same high quality of service and dedication to every project and highly recommend his services. I I I I I I Modesto E. Abety President &. CEO Marla Artsta-Volslcy Legal Counsel JCJ/mls . 4500 Bi$cayn~ Blvd., Suite 201. Miami, Florida 33137 . Tel: 305-57175600 Fax: 305-571-5615 . www,thechildrenstrust.org , , II I II I II I I II I i I I I I I I I, Ii II I I I' Oleg Gorokhovsky, CPA' E-mail:Oleggorokhovsky@bellsouth.net Home Phone:. 954-964-2925 Work Phone: 305-532-6401 ext. 3023 To whom it may concern: It is with a great pleasure that I write this letter of recommendation on behalf of Mr. Elias Castellanos, CPA. I have known him personally and professionally for more than three years. As the Audit Manager, he has been involved with the organization I am currently employed with in the capacity of Acting Finance Director. Mr. Elias Castellanos, CPA is highly regarded by his colleagues and clients. He has detfto'ffSfi1ffeaa"fdcuS" ili . fils work,-- a beilftlfy objectivity -Wt1h~l1is' cIientraild-a-sense'of .- purpose that has guided him into higher level of responsibility. I have found him to be very reliable and professional in all aspects. I highly recommend Mr. Elias Castellanos, CPA because of his high working standards . and ethics, his extensive knowledge of the Accounting and Auditing fields. his reliability and loyalty, as well as his high intelligence and flexibility to adjust to new working environments. It is my hope that he will be able to make the most of his potential on whatever endeavor he undertakes. Should you have any questions about him, please do not hesitate to calJ me at 954-964- 2925. Si7JY. t .. ._ot.l!-~Ovsky, CPA Interim Finance Director The Housing Authority of the City of Miami Beach I I I I I I I I I I I I I I I I I I I APPENDIX B- LICENSES TO PRACTICE IN THE STATE OF FLORIDA 01/06/2006 16:24 30S67e2821 ABRAMS ABRAMS PA I I I I I I I I I I I I I I I I I I I -;9:5; "4:JV.. ~.. . ~~-~~~;'8 ..;:_; ~'~'~-~~,i.:t 1--':' ,,~i"j{ \i:jj < 'J~',,~, ~.......r..... .-;-....V.. ~, FLORIDA DEPARTMENT OF STATE Division of Corporations December 29.2005 ALBeRNf, CABALLERO & CASTELLANOS LL.P.I ABRAMS & ABRAMS, P.A. 9400 SOUTH DAOELAND BL VD., PH III MIAMI, FL 33156 The Statement of QuaHf/catlon for ALBERNI, CABALLERO & CASTELLANOS L.LP., was flIed on December ~2, 2005. TIle dooument number assIgned to this filing Is LLP050004B24. - Please be aware if the address changes. It is the responsibIlIty of the limited liability partnershfp/lfmited liability IImltea partnership to notify this Office. An annual report/uniform business report will be due this office between January 1 and May 1 of the year following the calendar year of the file date. A Federal Employer Identification (FEI) number will be required before this report can be filed. Please apply NOW with the Internal Revenue Servioe by calling 1-800- 829-3676 and requestIng form SS-4 Should you have any questions regarding this flIing, please contact this office at the address given below. Sincerely. MIchelle Hodges Document SpecIalist Partnership Section Division of Corporations Letter Number: 605A00073961 . Division of Corporations - P.O. BOX 6327 -Tallahassee, Florida. 32.U4 PAGE E:l2/E13 I (~W-~j0,':~1 ,,...~.,1,. ..J. '.' ...,'j"j!- " ...r.,-....~ .-:.'Ilt.~\..f',:. ...\ ~ (, ~g~F~il\Q. ~..~.""da. .... .. ~., . . . ,Ni.~~' . ~~ STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD 01' ACCOtm'l'ANCf 240 NW 76TH DRIVI, . SOI'!'E A GAINESVILLE I'L 32607 (352) 333-2500 I I I ALBERNIL CABALLBRO & CASTELLANOS, LLP 4649 POl'lCB DE LBON BLVD SOITB 404 CORAL GABLES FL 33146 I I' I I I I I I DETACH HERE I'~---"-------'--'''-'-----":,,,-~-,-~~-,,-~~-~---,-----,-.,~.~ ~j:~~trli~li-:!f~i<~~i~,:.~:. ,., .6'1; .':;S,}' "::.;~j.;::,i~"r:&ti:rf;iJ~~EtJ8mb~;'':::;'f;',:;;:, ....~;)>i~~,i::~.;~~:...'.<:;;:....:.-: ;':';;~:".".;;:":\:.:;; ".,,~!.:!;,,:; I. Cj~r.~~lf~l~"'~t.ft_~;~.I~~i~l~i ~ ; . LJ: ENSB 'NBa ~ ....... -"~',. .", , ,..~;..- ......, "......~..:u-".-.....;,:~':'~':;.;"... :-;-:... ,~~\:;;~~.:~~~.~-:_,:,..:., ":. I f~ ,'i["i '. ~ ':ri~1' 'iW~'i'i~-.:i;}.i~';:';';'l ;;";, :" '~o;,\5"" :f:I;~' .''' >u: " : ~. 1IDli Jl.o.;.y~:tG-.:;'~.~: '.,.:,,.0,.' I.~'-. ~'_~-; ., ' Ui',' ".~ :',t;'eoRP<iRAffoN:' !~'f"!?~,~1~~zli]~s.~' .. ., "~~",tis.,.;~ , . dt'" I:, .~i~:,:)~dr't!'::ti~o)~~l:i" "t:i'-'" DEe 31 ~'7 "'OC~!~~ ,i" 0 1':; ~, .) ,;., ~t~j~)~;(~*t:(~-~~~~)}%~~;!~{f~}; C,';,,!;);'. '".;;t\' ,:",,\'gil.:.,:..}~;'jf~_:!~I(~~;.;'?~:i~?i""" ".' "";' I :l~~.r ,~;""ii.'/'.'~<Ql{j<';~:~~_":';-<:' ~~-~~ :-{.~:._~:. Hi 'i~:" ..... .1'~ti~os ..~~~ ,,;~(f;' 0'"," , '. ':_ . 'lI!Itl'I:;- ,'.";!ft '~L' ' " '. l, " . ~..'. , i.-~' Ml:ir''''- 'wa D _ h }f~ ,. o. ~;_t:$'~'."':.;':.. '_ FL!.-33:L46-. ,.,~., ,,' ~ ',' 1 ~.rt..r.;,~r,~!~.:,~.f.~.~~t.A~~~~.\1~;~~..J~f.!:i,j'!.:,:.)(t'..l,i.>, ~::, :,,"~";::"> ~;'.~> Y' ~:'_.:. ;.;;..;,;:,:1', "\"~'i~>" ~ I',...., ,......,.. .,....... "'. 'o~ . ." !~.~?;}~:~t;~~;.;<:..~:.:fl~i/._.<' ..' -.' [)'$PLAY'A~"'~~Q\4I~gg'~~'LAW" I ~-_...~..*...- ....... '"'......... _.- .-. - ...~ ~ii~1~~~i~i I " I I I I I I ) / I I I I I I I I I I I I I I I I I' I I I I I I I I I I I I I I JAN 28,2007 01:01 Castella~~ 9544326718 Page 1 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATiON BOARD OF ACCOUNTANCY .. 240 NW 76TH DRIVE, SUITE A GAINESVI~LE FL 32607 (352) 333-2500 CASTELLANOS, ELIAS SAMUEL 13055 SW 21 STREET MI~R FL 33027 . ITATEOFFLORIOA AC# a3?DCjbb DIPARTMSRT or BOSINESS AND '. PROPBSSIOHAL REGULATION AC0027624 12/29/05 050396633 CERTIFIED PUB~IC ACCOUNTANT CASTELLANOS, BLIASSAHUEL IS LICBNSBD lUllS... th. pravi8iou of Ch,473 irS. "'l"AUOA 41.... DEe 31, 2007 L05133'00580 DETACH HERE i"'~~~ 2370966 L";"'_ STATE OF FLORIDA DE~ARTMENt OF BUSINESS AND PROFESSIONAL kEGULATI0N' , BOARD OF ACCOUN'l'ANCY SEQ#LOS122900580 . . . 12'29 2005 05D396633 00027624 The CERTIPIED.PUBLIC ACCOUNTANT Named below IS LICENSED Under the provisions of Chapter 473 Expiration date. DEe 31, 2007 FS. CASTELLANOS, ELIAS SAMUEL 19680 NE 12 CT NOiTH MIAMI BEACH FL 33119 JIB BTJSH GOVERNOR . DISPLAY AS REQUIRED BY LAW ..-no,f\MIUIo SIMONE MARS~ILLER SICRETARY I I I I I I I I I I I I I' I I I I I I -l STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGU~TION BOARD OF ACCOUNTANCY 240 NW 76TH DRIVE, SUITE A GAINESVILLE FL32607 (352) 333-2500 CABALLERO NESTOR 4649 PONCE DE LEON BLVD. SUITE 404 CORAL GABLES FL 33146 .~.T.I~:rJ:. OF:~(?R!IJ~. . ACI 3 Q.111 7 3 J)B~Ali';t!~:':ro~:~USIN,ESS AND. 2::'~Rq~.S~ION1LL . REGt7L1t.T.ION' .I~_,., (:.>:~: ..:"'~.'" . ,,' .' . 'J(C003'(13it6 01/03/0; 068117638 .CER'l'IFI,ED PUBLIC ACCOmrrA1tt ",..,:. ;:;.:, CABALLERO NESTOR '.. ,..... .'1;. . .' , '~::~:Y' ~.:<. ).~~ ':;/'..:~ " ~'.: ~.. i,.~. .:~": I$;";j;I~~ED. unC;;'~ ~./~~i8iOii:&,.::Of F.\ij.~73.:~';li/..(., .'1:,', -, :.1..:. :':."" .~:.~ ,", '..fir :',:,': .".ft-, :/,'If' _" c.)( '., /.':' .: '.:0,' 8xI!:~at~P,Ao,;d&t~rflE~.!~ ~'i/.,'2 \'\g:~., ;II/.'; L,O.1~lO~9.~,~9 5 ;~ > DETACH HERE ~@9~~~ttJ F)';i~~~~: ~i~~JlJ>~1f~stj~~ :t~G~iION ... .. .... .. '--,',' .....~,-.~~.-.. '.'...... ....-, J." "."-. ."'- '~~AaD '.:OF.-.~CCO_~O<Y ..'.',' ',.'. ':" ;....'.' SEQ#L07010300S95 ~':.,~:: 'f;;~:ji;:.~;/r ~';i;: .::t:/:,:;;: . \)~~: ~::J~:',);y/ \~:;~ ;:~:7.:,:t.}. :;?>?,y." "W,,;.,.:t,: ::{:. 1::.!';~::;',:': ...... . . . LICENSE NBR Oi"03 ',~~Ob7 668117638?;;~Aci~03,6~a1~ The' \CERtIFIED PUBLIC}.xeco"UN'TANT Named. .below IS, LICENS.lD "{':~".... Under theprovis!ons':o'f Chapter 473 FS. ~~pi~~~io~,~~:~: DEC31, 2008 /fF ...::):Fit~:. ~{;;'>;'~ ';:;:':'; . . 'i:CAsj;LLl:ibi>~STo.B . . '--:-1552iS\MIAM':E: LAXE WAY N., #105 MIAMI LAKES FL 33014 }:<'....~ ..f~:..~ ~~>~ .--; _I,' '.L\d' 'r.~-::~)' .:~',t..' ./;.: , ." . .. - ~ '." ~. :: ::.' 'r : -I" .." ....'- ,'/?.. ~;>. ",- J' .... ,. "::'\:":.;<:'~:>' . ",.1, :/,..','~' ,;.I( _. ','.. . ~. r. f .' ,,...: .; ': ",:: :t.'" I.;: :I:~..-t . : :,: .'~~' -.". . .CIlARLI.E. CR..IST . GO'VERNoa. I. :. :::<':;,<'/ ",._:1::" . ."' . .... ..'/ I. -:'(,~. :~;~:'''' .':-:/~"J.'~':'. . ~::?~..~:~;~.' .:-~~~~: :;~.~:~~ ~~? HOLLY BENSON:';<~, :.;: -:::. SECREftlY ........ .; . ,... ;\/;: :::-t::~:;;(; :i{'J.j' (111*[1 ..j i I I I I I I I I I I I I I I I I I I I S1 ATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY . 24,0 NW 76TH DRIVE, SUITE A GAINESVILLE' FL 32607 (352) 333-2500 CABALLERO L NELSON 13554 SW ~8TH AVENUE MIAMI FL 33156 ... , - ---SrA TE. of FLORIDA: . .:~ -. '~-,':'\t\6"i.'~.:a'2~:~;A"[j:2'''3 DEPARTMENT .0:9' BT1SDlBSS AW> .":.:; . PROFESSIONAL".Rl!:G~~IQ.l~\ .....::,. . ." : ,.' - . . :: ~'. ;' AC0031807 10/26/0~- 'b5.:?34~~~O '~'~~J ::('::i._',:. CERTIPIED i1tJBLIC ACCOUNTANT":: .... CABALLERO, NELSON :~ :. . .,::' :<. : ...... ....:.... ',. IS .LlCENSED I1DcSar th.'provldo;:'~ 6~;;i:h.~:73 J'~;:: axplraUoZl data. DEe 31,: 2007' "'::. ..::.::L0510.26bo..?(.... DETACH HERE -.--.....-. -.-----_. _.. -.. .------.. .. --.. ..... . ;'~Ac#22 9.8023.. ..... ',".::~ ..'-;>: ._..ST~r~~.PFFL9.RID.6. . . '. " ::.. . ". "DEPARMln OF:: BustNESS.:'ANn PROFESSIONAL REGULATION .... '''. '. ':'.:>L:.: :'::>.:/~~9~ :.g~~~CCO~TANCY SEQ#LOS102~006'70 . LICENSE NBR ". ..... . .... 1026 2'005 050345520 ..:- ACO'03:f807.. ".. .." :' .' The CERTIFIED POBLI C:'::AC'COUNTAN':r "":':'.-"'.' :Named below IS LICENSED . _ .... Under the provisions' of clia.p-":~'r..;l73 :FS .:: Expiration date: DEe 31, 2007- :-.'."~:: .;-"':. .'. .' . ..' " . " .... . '.. ." . ..... .... :-. -':'-, -, ..', .." ',: .:'.;.;.";.':- ;.:/;' .:j .-.<: ;;',:..:...: :.::. 'r '. ~: . ..1::' .. " . i .',", . . ~,'. .:.',. . ." I.." ':':.::':CABALLEItO ~ - NELSON '. .. ..' .....1040S,..,:SW -,9TH.'PLACE .' .... . . " MIAMI FL 33156 :. '.:'. - .. .- ,', ':. '. . .:.~.".;. . '.'- .....:...:t.:"... . .... ...... . .... .-.;..... '. ....:.:. '~.' . " ......... . .... . ~.-::' . . "~:. .... ,- JEB BOSH' GOVERNOR . ," .; ~ .. ~ . - . .... '; :-::.. DISPL:A)i A~'REQUIRED BY LAW ---------------..-.-....... ........ I I I I I I I I I I I I I I I I I I I APPENDIX C- INSURANCE I I . 1~ ACORD.. CERTIFICATE OF LIABILITY INSURANCE OP 10 DATE (MMlDDIVVVV) CABAL-l 11/21/06 PRODUCER THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE A-I ~nsurance Group, Inc. HOLDER, THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 2700 SW 137 AVE ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. Miami FL 33175 Phone: 305-223-2533 rax:305-220-0765 INSURERS AFFORDING COVERAGE NAlC ## INSURED INSURER A: PhUadolph1.a Indollni ty InII CO INSURER B: Technoloqy Insurance Co. 42376 Caballero & castellanos, P.L. INSURER c: Neator Caballero 1~340 SW 78 ST INSURER D: Miami !'L 33183 INSURER E: COVERAGES I I I TI-lE POLICIES OF INSURANCE L1SlED BELOW l-LA.VE BEEN ISSUED TO TI-lE INSURED NAMED ,>SOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING MY REOUIREMENT, TERM OR CONDITION OF MY CONTRACT OR OTHER DOCUMENT WITI-I RESPECT TO V'tHICH THIS CERTIFICAlE MAY BE ISSUED OR Ml\Y PERTAIN, TI-lE INSURAACE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS MD CONDITIONS OF SUCH POLICIES. AGGREGAlE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS LTR NSRC TYPE OF INSURANCE POLICY NUMBER DATE (MMJODN'Y) DATE (MMlDDIYY) LIMrr& GENERAL LIABILITY EACH OCCURRENCE $1,000,000 - A X COMMERCIAL GENERAL LIABILITY PHSD095672 07/07/06 07/07/07 PREMiSES (Ea occurence) $ 50,000 - :=J CLAIMS MADE [!] OCCUR - MED EXP (Arly one person) $ 5,000 PERSONAL & PJ)V INJURY $1,000,000 - GENERAL AGGREGAlE $1,000,000 - GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMP/OP AGG $1,000,000 I POliCY n r:;~2T n LOC AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT - $1,000,000 MY AUTO (Ea accident) - ALL OWNED AUTOS BODIL Y INJURY - $ SCHEDULED AUTOS (Per peroon) - 07/07/06 07/07/07 A X HIRED AUTOS PHSD095672 BODILY INJURY - $ A X NC#-OWNED AUTOS PHSD095672 07/07/06 07/07/07 (Per accident) - PROPERTY D.AMAGE $ (Per accident) GARAGE LIABILITY AUTO ONLY - EA ACCIDENT $ =1 MY AUTO OTliER THAN EA ACC $ AUTO ONLY N>G $ EXCESSJUMBRELLA LIABILITY EACH OCCURRENCE $ o OCCUR D CLAIMS MADE AGGREGATE $ $ R DEDUCTIBLE $ RETENTION $ $ WORKeRS COMPENSATION AND X ITORYLIMI'Ts I IVEfl EMPLOYERS' LIABILITY B ANY PROPRIETORJPAATNERlEXECLlTIVE 061975 11/21/06 11/21/07 EL EACH ACCIDENT $ 100000 OFFICERlMEMBER EXCLUDED? EL DISEASE - EA EMPLOYEE $ 100000 If yes, describe under $ 500000 SPECIAL PROVISIONS below E L. DISEASE - POLICY LIMIT OTHER A Professioan1 Liab PHSD095672 07/07/06 07/07/07 Liabili ty $l,OOOJOOO Deductibl $5,000 DESCRIPTION OF OPERATIONS' LOCATIONS 'VEHICLES' EXCLUSIONS ADDED BY ENDORSEMENT' SPECIAL PROVISIONS CERTIFICATE HOLDER I I I I I I I I I I I I Virginia Key Beach Park Trust 4020 Virginia Beach Dr Miami Ii'L 33149 CANCELLATION VIMINK SHOULD Am OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WFllTTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATiON OR L1A!l1LITY OF At<< KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. AUTHOR! REP S @ ACORD CORPORATION 1988 I ACORD 25 (2001/08) I I I I I I I I I I I I I I I I I I I I APPENDIX D- DISCLOSURE AFFIDAVITS I I I I I II I I I I I II I I I I I I I I ~ APPENDIX E PROPOSER GUARANTEES and WARRANTIES anc! STANDARD TERMS & CONDITIONS I. The proposer cerrifies it can and will provide and make available, as a minimum. all services set forth in Section II, Nature of Services Required. 2, Proposer warrants that it is willing and able to obtain an errors and omissions insurance policy providing a minimum of $1 million of coverage for the will ful or negligent acts. or omissions of any officers, employees or agents thereof. ' 3, Proposer warrants that it willnol delegate or subcontract its responsibilities under an agreement without the prior written permission of the Cily of Sunny Isles Beach, 4, Proposer warrants that all information provided by it in connection with this proposal is true and accurate, A Signature of Official:_ Name (typed): N Il. 5 -to ,,r Title: 7""-...... +~__ A (~,r&-., t.f /1.,-> }VI C~....~c..l~<.'.......o L Le Firm: (: <:'L- l ~ -.) c;.. G:.S k I L. -- Vj Date: 414/2007 City of Sunny Isles Beach: Request for Proposal - Audit Services 29 I I I I I I I I I I I I I I I I I I I NON-COLLUSION AFFIDA VIT State of Florida) )ss. County of Miami-Dade) Nestor Caballero being first duly sworn, deposed and says that: (Authorized Agent) (1) He/She is the Partner (Owner, Partner, Officer, Representative or Agent) of the Bidder that has submitted the attached Bid; (2) He/She is fully informed regarding the preparation and contents of the attached Bid along with all pertinent circumstances regarding such Bid; (3) Such Bidl is genuine and is not a collusive or sham Bid; (4) Neither the bidder nor any of its officers, partners, owners, agents, representatives, employees or parties in interest, including this affiant, have in any way colluded, conspired, connived or agreed, directly or indirectly, with any other bidder firm or person to submit a collusive or sham proposal in connection with the work for which the attached proposal has been submitted; or to refrain from bidding in connection with such work; or have in any manner, directly or indirectly, sought by person to fix the price or prices in the attached Bid or of any other bidder, or to fix any overhead, profit, or cost elements of the Bid price or the Bid price of any other Bidder, or to secure through any collusion, conspiracy, connivance, or unlawful agreement any advantage against the City of Sunny Isles Beach, or any person interested in the proposed work; (5) The price or prices quoted in the attached Bid are fair and proper and are not tainted by any collusion, conspiracy connivance, or unlawful agreement on the part of the Bidder or any other of its agents, representative, owners, employees or parties in interest, including this affiant. ~ \ " N e. )\ 0 v C l<- ~ ~..l Lc ~ ..) Signature of Affiant Printed Name I I I I I I I I I I I I I I I I I I I State of Florida) )ss. County of Miami-Dade) BEFORE ME, on April 24. 2007 the undersigned authority, personally appeared (name) Nestor Caballero who is personally known to me and who executed the foregoing Affidavit for the purposes expressed in it. ~~~ NOT AR Y PUBLIC, State of Flonda t Large My commission expires: ~.".v .Ii\- ~~j .....01"'0 Notary public state 01 Florida Susana G Cruz My Commission D0591 062 Exoires 10/30/2010 I I I I I I 'I I I I I I I I I I I I I Sworn Statement Under S287.133(3)(a), Florida Statutes Public Entity Crimes (This form must be signed in the presence of a Notary Public or other officer authorized to administer oaths.) 10 This sworn statement is submitted to the City of Sunny Isles Beach, Florida with Bid, Proposal or Contract Name or No. 07-04-01 2. This sworn statement is submitted by:Alberni Caballero & Castellanos. LLP (name of entity submitting sworn statement) its business address is: 4649 Ponce de Leon Blvd. Suite 404 Coral Gables. FL 33146 Federal Identification Number (FEIN) is: 55-0912340 (if applicable) Social Security Number: (if the entity has no FEIN, include the Social Security Number of the individual signing this sworn statement) " -'. My name is: Nestor Caballero (PRINT NAME of individual signing this document) and my relationship to the entity is: Partner (President, General Partner, etc. as applicable) 4. I understand that a "public entity crime" as defined in S287.133(l )(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 with 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. 5. I understand that "convicted" or "conviction" as defined in S287.l33(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, non-jury trial, or entry of a plea of guilty or nolo contendere (also known as "No Contest"). II I I I I I I I I I I I I I I I I I I 6. I understand that an "affiliate" as defined III S287.133(1)(a), Florida Statutes means: (a) A predecessor or successor of a person or a corporation 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 crime. 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 a joint venture with a person who has been convicted of a public entity crime in Florida during the preceding 36 months shall be considered an affiliate. 7. I understand that a "person" as defined in S287.133(1)(e), Florida Statutes, means any natural person or any 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 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 an entity. 8. Based on information and belief, the statement that I have marked below is true in relation to the entity submitting this sworn statement. (Please indicate which statement applies): XXX Neither the entity submitting the sworn statement, nor any officers, directors, executives, partners, shareholders, employees, members or agents who are active in management of the entity nor any affiliate of the entity have been charged with and convicted of a public entity crime subsequent to July 1, 1989. _ The entity submitting this sworn statement, or one or more of the officers, directors, executives, partners, shareholders, employees, members or agents who are active in management of the entity or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989 and (Please now indicate which additional statement below applies): _ There has been a proceeding concerning the conviction before a hearing officer of the State of Florida, Division of Administrative Hearings. The final order entered by the hearing officer did not place the I I I I I I I I I I I I I I I I I I I person or affiliate on the convicted vendor list. (Please attach a copy of the final order) _ The person or affiliate was placed on the convicted list. There has been a subsequent proceeding before a hearing officer of the State of Florida, Division of Administrative Hearings. The final order entered by the hearing officer determined that it was in the public interest to remove the person or affiliate from the convicted vendor list. (Please attach a copy of the final order) _ The person or affiliate has not been placed on the convicted vendor list. (Please describe any action taken by or pending with the Florida Department of General Services) April 24, 2007 Date Signature (of person whose PRINTED NAME first appears above) State of Florida) )ss. County of Miami-Dade) BEFORE ME, on April 24, 2007 the undersigned authority, personally appeared (name) Nestor Caballero who is personally known to me and who executed the foregoing document for the purposes expressed in it. orida at Large My commission expires: ~tP' ~ !J. ' ~~," ~on\.&f NotarYPu61fc tate -bfFlorida Susana G Cruz My Commission 00591062 E ires 10/30/2010 I I ! I i II I il I I I I I I I 'I I I I I I APPENDIX E- PEER REVIEW REPORTS I I I I I I I I I I I I I I I I I I I FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 325 WEST COLLEGE AVENUE.P.O. BOX 543!.TALLAHASSEE, FLORIDA 32314 TELEPHONE (850) 224-2727-FAX (850)222-8190 September 20, 2006 Nestor Caballero, CPA Caballero andCastellanos,PL . 13340 SW 78 St MiamiJ FL 33183 Dear Mr. Caballero: It is my pleasure to notify you that, on September 19, 2006 the Florida Peer Review Committee accepted the report on the most recent peer review of your firm. The due date for your next review is May 31 J 2009. This is the date by which all review documents should be completed and submitted to the administering entity. As you know, the reviewer's opinion was unmodified. The Committee asked me to convey its congratulations to the firm. Sincerely, ~ /t4'z~ 'Paul N. Brown Peer Review Director of Technical Services cc: A Roger Infante, CPA Firm Number: 3809865 Review Number: 235789 I I ~ III I I.. ~ 'tS ~ ~l.!~ I rl ~ ~ ~ r.. .g ~ ~ ~ 2 ~ ./: ~ ~ ~ ts ::s ~ .t; ~ I ~ ~ ~ i 6~ ,,~ '5~..c ~ ~ ~ o~ .~ ~ r.. .... ts .s:.~s~ -St~ I, of==l ~ C) ~ .9 ~ tJ .~ ~ 1 5~c ~ ~ ~.~~~ ~t~ : -; e e -< ~ "OQ:; I < ~ ~ .... ::s 8 Q, .~ ~ ~ t:l1 trJ '5 Cl~ It ~ ~ .... ~ ~ .... ti'5s53 I \9 "(; Q .... e ~ '5 ~ 0 ~ Q, ! .... .... .-; ~ ~ ItS1~ - ,I( t - = .,...., ~ :s ~]~ I D- -.., = ::\ .= ts 8 ..... 0. . , .... :~: ~ ;~ ~ :/,< ,.... ~ .~ QJ ~ t ~ ~ I u ~ ...... ts ~ I:: 1&1 4 ~ ~ '5 .! e ~ .,.., C'J ~ t ~ ::s - - .~ U g E ~ ~ I > ~ ~ C) ~ ~ i( III ~ _J ~ ~ ~Sl>>"" ,- ~~..c.c It ~ fC ~ .~ ~ '" ~ I .~ 0 .,!: ~ :c C) It :z, ~ .. s .r oS ~ ~ ~ ~ t III QJ Q ,.... g J::: I>> ..c I III ,.... '> .:l .~ = I:: ~ ~ 53 D. ~r=:1 Q .c ~ ~ ,.C b ~ r.. f = .... ..c Q, t::. I or==j u t;..c~~ '~ ::s .~ ~ ..c t:l1 ..c:: .... ~ ~ ~sl~ I E~ts~ ~ ~ ~ ~ e ~ ~ I:: Q, ~ ~" ts Q I U ~ ~ ~ ~ I.. .S ~ ~~i:~ ~.>I .... e ::\ I:: ~ I>> Q ~ I e" :;) (J J::: ..c:l Q ~ I>> r..~ .&:: Q J:::.... ~ ts , I.. I I ~ I I ~ I I I I I I I I I I I I I I I I I I I Zf!& INFANTE & COMPANY CERTIFIED PUBLIC ACCOUNTANTS. BUSINESS CONGULTANTS Members of: Aml!l1Clll'llna\itute 01 Q)As . Center 101' Public Company Aucft Finns 'Tn DMalon · Pet80naI FinIl1c1111 Planning Section FIoridlllnltitute III CPAs Nationlll A!lSoclated Certit~ Public Accovnting Arms HaI1'icon Exewtlvll Centre . Suitll 308 1930 HaITisDn Slntet HoIy,wod. RQI'ida 33020 Telephone (9541922-8966 Fu f~I922.eBB4 WWW.illfantecoCPB.com Iccpes_BIlI.cam June 29. 2006 To The Partners Caballero and Castellanos, P.L. We have reviewed the system of quality control for' the accounting and auditing practice of Caballero and Castellanos, P.L. (the "Firm") in effect for the year ended November 30.2005. 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 professio~al standards. The elements of quality control are described in the Statements on Qual~ty Control , . . Standards issued by the Americnn Institute of Certified Public Acconntants (A ICP A). The finn is responsible for designing a system of quality control and complying with it to provide the Firin reasonable assurance of confonning wIth professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the Firm's compliance with its system of quality control based on our review. Our review was conducted in accordance with standards established by the Peer Review Board of the AICPA. During oLtr review, we read required representations from the finn, interviewed finn personnellind obtained an understanding of the nature of the Finn's accounting and auditing practice, and the design oftbe Finn'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 Fiml'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, audit of an Employee Benefit Plan. and engagements perfonned under Governmental Auditing Standards a.nd OMB Circular A-133. 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 perfonned provide a reasonable basis for our opinion. In perfonning 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 Finn's quality control policies and procedures to the extent we considered appropriate. These tests covered the application of the Finn's policies and procedures on selected engagements. Our review was based on selected tests therefore it would not necessarily detect aU weaknesses in the system of quality control or all instances of noncompliance with it. There are inherent limitations in the effectiveness of any syste~ of quality control and theref~re noncompliance with the system of quality control may I I I I I I I I I I I I I I I I I I I . occur and not be detected. Projection of any evaluation of a system of quality control to future periods is subject to the risk tbatthe 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. In our opinion, the system of quality control for the accounting and auditing p~ctice of Caballero and Castellanos, P.L. in effect for the year ended November 30. 2005, has been designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the AICP A and was complied with during the year then ended to provide the Firm with reasonable assurance of confonning with professional standards. ~~~ '. I I I I I I I I I I I I I I I I I I I ~~~KANE & COMPANY :RA. ~.. ,',' ';<' ".' :--~""/<~,'.":j:",-, . ' " .' ,'A~~'~' , . , . , .., . tJoY"fll'41t~tJ ~ <'I'I~jllliIlI'IBI.I( \(lUI:-'I\\I~sBI~i\I:~~,l\J.\~III\\I' :,,:,. ' " '>':~":'.:;;"" " ". _ ',''-;';;;!'' ,. r::.......~ " ..,~"_ ., "'," ~(""" ".' " .' ""U";'h' .' Shareholders Albemi, Caballero & Albemi, P.A. 4649 Ponce de Leon Boulevard, Suite 404 Coral Gables, florida 33146 AFFILIATE OF' AcCOUNTANTS GLOBAL NE'TWORK We have reviewed the system of quality control for the accounting and auditing practice of Alberni, Caballero & Albemi, P.A. (the firm) in effect for the year ended June 30t 2005. A system of quality control encompasses the fmn'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 firm's 'Compliance with its system of quality control based on our review. OUf review was conducted in accordance with standards established by the Peer Review Board of the AlCP A. During our review. we read required representations from the finn, interviewed firm personnel and obtained an understanding of the nature of the firm's accounting and auditing practice andthe design of the fIrm'S system of quality control sufficient to assess the risks implicit in its practice. Based on our assessments, we selected engagements and administrative files to test for confonnity with professional standards and compliance with the finn's system of quality control. The engagements selected represented a reasonable cross-section of the finn's accounting and auditing practice with emphasis on higher-risk engagements. (The engagements selected included among others, engagements performed under Government Auditing Standards). Prior to concluding the review, we reassessed the adequacy of the scope of the peer review procedures and met wit~ firm management to discuss the results of our review. We believe that the procedures we performed provide a reasonable basis for our opinion. In perfonning our review. we obtained an understanding of the system of quality control for the fmn's accounting and auditing practice. In addition, we tested eompJiimce with the finn's quality control policies andprocedurcs to the extent we considered appropriate. These tests coverod the application of . the firm's policies and procedures on selected engagements. Our review was based on selected tests and therefore it would not necessarily detect all weaknesses in the system of quality control or aU instanQes 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 deteriomte. In our opinion, the system of quality control for the accounting alid auditing practice of Albemi, Caballero & Albemit P.A. in effect for the year ended June 30, 2005, 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 finn with reasonable assurance of confonning with professional standards. 4~ A C~/?7p~/ r./1, Kane & Company, P.A. Certified Publio Accountants February 3, 2006 1101 BRICKELL AVENUE. SUITE M.W'. MIAMI. FLORIDA 33131 · H;l.: 305,789.790Q . FAX: 305.789.7901 ~~l~:;'v~::r~~Y:.:;:~~: ,;~~~'~;~~~~\~i~\~~~:Rf~~:~~1:~;~~/:\ ~,~}-';~;J,:";~;} .:.::{:. ~. r~~;~t~~~?,,~ ':~:/~:~~ ~ I I I I I I I I APPENDIX F- SAMPLE MANAGEMENT LETTERS I I I I I I I I I I I I I I MANAGEMENT LETTER REQUIRED BY SECTION 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA I I To the Board of Directors of the SAMPLE Authority Fort Lauderdale, Florida I We have audited the financial statements of the SAMPLE Authority, as of and for the fiscal year ended September 30,2006, and have issued our report thereon dated November 17, 2006, I We conducted our audit in accordance with United States generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States, We have issued our Independent Auditor's Report on Internal Control over financial reporting and on Compliance and Other Matters. Disclosures in that report, which are dated November 17, 2006, should be considered in conjunction with this management letter I Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. I The Rules of the Auditor General (Section 10,554(1)(h) 1,) require that we address in the management letter, if not already addressed in the auditor's reports on compliance and internal controls, whether or not recommendations made in the preceding annual financial audit report have been followed, The recommendations made in the preceding annual financial audit report have been corrected, I I As required by the Rules of the Auditor General (Section 10.554(1)(h) 2,), the scope of our audit included a review of the provisions of Section 218.415., Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Authority complied with Section 218.415, Florida Statutes. I The Rules of the Auditor General (Section 10.554(1 )(h) 3.) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we have reported our findings and recommendations below under the heading Current Year Findings and Recommendations. I The Rules of the Auditor General (Section 10.554(1 )(h) 4.) require disclosure in the management letter of the following matters if not already addressed in the auditor's reports on compliance and internal controls or schedule of findings and questioned costs and are not clearly in consequential: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e. g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor, Our audit disclosed the following matters required to be disclosed by Rules of Auditor General (Section 10.554(1 )(h)4,): I I .:. Current Year Findings and Recommendations: No. 2006-01 and 2006-02. I I I I I I To the Board of Directors of the SAMPLE Authority I The Rules of the Auditor General (Section 10.554(1 )(h) 5,) also require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The Performing Arts Center Authority is an independent special district governmental unit established in 1984 by a special act of the Florida Legislature (Chapter 84-396. There are no blended or discretely presented component units. I I As required by the Rules of the Auditor General (Section 10,554(1 )(h)6.a.), a statement must be included as to whether or not the local government entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes. In connection with our audit, we determined that the Authority, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes, I As required by the Rules of the Auditor General (Section 10.554(1 )(h) 6,b.), we determined that the annual financial report for the Authority for the fiscal year ended September 30,2006, filed with the Florida Department of Financial Services pursuant to Section 218,32(1)(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2006. I I As required by the Rules of the Auditor General (Sections 10.554(h) 6,c. and 10,556(7), we applied financial assessment procedures. It is management's responsibility to monitor the Authority's financial condition, and our financial condition assessment, which was performed as of the Authority's fiscal year end, was based on representations made by management and the review of financial information provided by the Authority. I This management letter is intended solely for the information of the Authority and management, and the State of Florida Office of the Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. We wish to thank the SAMPLE Authority, and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements and the courtesies extended to us. I I November 17, 2006 Miramar, FL I I I I I I I I I I SECTION 1- FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS A. CURRENT YEAR FINANCIAL STATEMENT FINDINGS I REPORTABLE CONDITIONS I No. 2006-1 -Qualified Public Depositor I CONDITION: During our testing of cash, we noted that the Authority's bank accounts were regular business checking accounts and not public fund accounts, Also, that the required Public Depositor Annual Report was not filed for September 30, 2005. II I II CAUSE: The Authority was not aware that the checking accounts were not public fund accounts, EFFECT: The Authority's bank balances are only covered by the FDIC up to $100,000 and approximately $2,000,000 is subject to risk of loss if there is a bank failure. By having the checking accounts deposited in public funds account the entire balance is secured in accordance with Chapter 280 of the Florida Statutes. RECOMMENDATION: We recommend that the Authority contact its banking institution which is a Qualified Public Depositor and change its checking accounts from business checking to public funds accounts. Also, the Public Depositor Annual Report for September 30, 2006, should be filed. i I MANAGEMENT RESPONSE: The bank was immediately contacted and all business checking accounts were changed to public fund accounts, The required Public Depositor Annual Report for September 30, 2006 was filed. I OTHER MATTER I No. 2006-2 -Establish a Formal Policy for Write-Offs of Old Receivables and Allowance for Doubtful Accounts I Observation During our testing of receivables, we noted that the Authority did not have a formal policy for write-offs of old receivables or establishing an allowance for doubtful accounts. I Recommendation We recommend that the Authority include in its accounting manual policies for write-offs of old receivables and allowance for doubtful accounts, These policies should first be approved by the Board of Directors, I ManaQement Response A draft policy was created and will be presented to the Board of Directors at the next available date, I I I I I I I SECTION II PRIOR YEAR CORRECTED FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS I No. 2005-1 -Cash in Bank I Observation During our tests of the bank reconciliation process for the FAU bank account, we noted that there was no indication that the bank reconciliation prepared by the Finance Manager was reviewed by a responsible person. We understand that the Finance Manager is normally responsible for review of all bank reconciliations; however, for the months July to September, the Finance Manager helped to prepare the bank reconciliations for this bank account as part of the training of another staff member who was having some difficulty in completing the reconciliation process. In the event that the Finance Manager must prepare bank reconciliations, they should be reviewed by an appropriate level of management. I I The evidence of a signature on the bank reconciliation would provide evidence that the bank reconciliation process and results were performed and reviewed in a timely manner and that reconciling items, if any, are questioned and investigated for validity. I Recom mendation Bank reconciliations should be prepared on a monthly basis, signed and dated by the person preparing as evidence of timely preparation. Management should review and sign off on all bank reconciliations monthly and obtain explanations for unusual items. I Current Year Status This recommendation has been implemented and will not be repeated. I No. 2005-2 Prepaid Insurance I Observation During our audit, we noted that the proper allocation of prepaid expenses was not used for certain insurance charges. As a result, prepaid expenses were overstated for general liability and understated for property insurance. Although the net adjustment was not considered material, failure to allocate the prepaid expenses appropriately based on policy terms and uniformity will distort monthly financial reports and annual insurance expense. I Recommendation We recommend that the prepaid expenditure be properly allocated over the policy term and that management adheres to an appropriate method of allocating charges. I Current Year Status This recommendation has been implemented and will not be repeated. I No. 2005-3 Capital Assets I Observation We understand that a fixed asset register was installed during the year, We noted that the accumulated depreciation was understated by approximately $364,000. The reason for this error was the result of depreciation calculated using a single estimated life for all assets within a category instead of recognizing the individual life for each asset. The financial statements have been adjusted to reflect the corrected balance. I Recom mendation We recommend that management take the necessary steps to ensure that reviews are made monthly on the depreciation charge recorded. I Current Year Status This recommendation has been implemented and will not be repeated, I I I I I SECTION II PRIOR YEAR CORRECTED FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS I No. 2005-5 IRS Form 941 I Observation We noted that the 941 Quarterly Reports filed with the Internal Revenue Services were not reconciled to the Salaries & Wages general ledger accounts. I Recommendation We recommend that a responsible person prepare reconciliation on a quarterly basis which reconciles the total reported on the 941 Quarter Reports to the relevant general ledger accounts. The reconciliation should be reviewed by management. Failure of reporting correct information to the authorities may result in fines and penalties, I Current Year Status This recommendation has been implemented and will not be repeated, I No. 2005 -6 Group Sales Deposits I Observation During our review, we noted there was no sub-ledger listing which details the name of the group, the show code and the performance date along with the amount deposited, We understand that the ticketing system "MaxTix" is not configured to provide this level of detail. The failure to provide complete and accurate information may result in the risk of unrecorded revenue. I Recommendation We recommend that management consider the preparation of a "sub-listing" which provides supporting detail to the general ledger account for group sales deposits. I Current Year Status This recommendation has been implemented and will not be repeated. I I I I I I I I I I I MANAGEMENT LETTER REQUIRED BY SECTION 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA I I Honorable Mayor and Members of the Village Council Village of SAMPLE, Florida I We have audited the financial statements of the Village of SAMPLE, Florida, as of and for the fiscal year ended September 30,2006, and have issued our report thereon dated December 21,2006. I We conducted our audit in accordance with United States generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Independent Auditor's Report on Internal Control over financial reporting and on Compliance and Other Matters. Disclosures in that report, which are dated December 21, 2006, should be considered in conjunction with this management letter I Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. I The Rules of the Auditor General (Section 10.554(1)(h) 1.) require that we address in the management letter, if not already addressed in the auditor's reports on compliance and internal controls, whether or not recommendations made in the preceding annual financial audit report have been followed. The recommendations made in the preceding annual financial audit report have been corrected except as noted below under the heading Status of Prior Year Findings and Recommendations. I I As required by the Rules of the Auditor General (Section 10.554(1 )(h) 2,), the scope of our audit included a review of the provisions of Section 218.415., Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the Village of SAMPLE, Florida complied with Section 218.415, Florida Statutes, I The Rules of the Auditor General (Section 10.554(1)(h) 3.) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls, In connection with our audit, we have reported our findings and recommendations below under the heading Current Year Findings and Recommendations. I I The Rules of the Auditor General (Section 10,554(1 )(h) 4.) require disclosure in the management letter of the following matters if not already addressed in the auditor's reports on compliance and internal controls or schedule of findings and questioned costs and are not clearly in consequential: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e. g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. Our audit disclosed the following matters required to be disclosed by Rules of Auditor General (Section 10,554(1)(h)4.): I I .:. Section II. Current Year Findings and Recommendations: No. 2006-01 and 2006-02 .:. Section III. Status of Prior Year Findings and Recommendations: No, 2005-01,2005-02,2000-07, 2000-08 and 2000-09 I The Rules of the Auditor General (Section 10.554(1 )(h) 5,) also require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The Village was incorporated in accordance with the laws of the State of Florida 16319 of 1933, There are no component units related to the Village, I I I I I Honorable Mayor and Members of the Village Council Village of SAMPLE, Florida I I As required by the Rules of the Auditor General (Section 10.554(1 )(h)6,a.), a statement must be included as to whether or not the local government entity has met one or more of the conditions described in Section 218.503(1), Florida Statutes. In connection with our audit, we determined that the Village of SAMPLE, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes. I As required by the Rules of the Auditor General (Section 10.554(1 )(h) 6.b,), we determined that the annual financial report for the Village of SAMPLE, Florida for the fiscal year ended September 30,2006, filed with the Florida Department of Financial Services pursuant to Section 21 8.32(1 )(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2006. I As required by the Rules of the Auditor General (Sections 10.554(h) 6.c, and 10.556(7), we applied financial assessment procedures. It is management's responsibility to monitor the entity's financial condition, and our financial condition assessment was based in part on representations made by management and the review of financial information provided by same, The accompanying schedule of findings and recommendations and Note XI of the financial statements present the current year's reporting of the financial condition assessment. I I This management letter is intended solely for the information of the Village of SAMPLE, Florida and management, and the State of Florida Office of the Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. I We wish to thank the Village of SAMPLE, Florida, and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements and the courtesies extended to us, I December 21,2006 Coral Gables, Florida I I I I I I I I I I I I II. CURRENT YEAR FINDINGS AND RECOMMENDATIONS REPORTABLE CONDITIONS I 2006-1 Bank Reconciliations and General Journal Entries (segregation of duties) I Condition: During our testing of bank reconciliations and general journal entries, we noted that the bank reconciliations and journal entries are prepared and approved by the acting finance director. I Effect: There is a lack of segregation of duties between preparer and reviewer for preparation of bank reconciliations and general journal entries, I Recom mendation: We recommend that the Village prepare bank reconciliations which include a preparer and reviewer sign-off. The preparer could be the acting finance director, but a Village official, such as the Village Manager should review and approve the bank reconciliations, Also, the Village currently has a general journal entry form that includes a reference for the preparer and reviewer. We recommend that the acting finance director propose the entries and that the Village Manager document the approval on the forms, I Management's Response: We agree with the auditors' recommendation and they have been implemented immediately. I No. 2006-2 -Budgeting I CONDITION: Section 166,241 (3) of the Florida Statutes states that "The governing body of each municipality shall adopt a budget each fiscal year. The budget must be adopted by ordinance unless otherwise specified in the respective municipality's charter. The amount available from taxation and other sources, including amounts carried over from prior fiscal years, must equal the total appropriations for expenditures and reserves. The budget must regulate expenditures of the municipality, and it is unlawful for any officer of a municipal government to expend or contract for expenditures in any fiscal year except in pursuance of budgeted appropriations." The Village did not adopt a budget for all of the special revenue funds, therefore, is not in compliance with the above mentioned Florida Statute. Also, see Finding No. 00-9 regarding over expenditures, I I I CAUSE: The Village did not adopt a budget for all of the special revenue. I EFFECT: The Village is not in compliance with State Statues that require budgeting of all Village expenditures. RECOMMENDATION: We recommend that the Village prepare budgets for all governmental funds. I MANAGEMENT RESPONSE: The Village has adopted budgets for all special revenue funds for fiscal year 2007, I I I I I I I I I I I I I I I I I I I I I I 'I L______ III. STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS No. 2000-07 Capital Assets During prior audits, a number of issues associated with internal controls over capital assets were noted, The following summarizes issues identified as a result of those procedures: 1. The Village has no written capitalization policy and instead leaves determination of which items to capitalize to department heads. 2. Changes in status of capital assets (i,e. sale, obsolescence, etc.,) are not reported to finance for proper accounting of such changes. 3. Periodic reviews of insurance are not performed to ensure that coverages are sufficient based on capital assets held by the Village, 4, The Village's capital assets have not been tagged as Village property, a physical inventory is not being performed at least annually, and such inventory is not compared with physical records and discrepancies corrected, Internal control over capital assets is essential in helping the Village ensure that its capital assets are being properly accounted for and that theft or other inappropriate activity is not occurring. By not having these controls in place, the Village is exposed to possible loss. In addition, the Village cannot ensure that it is meeting its fiduciary responsibility over the administration of public resources. Recommendation: The prior auditors recommended that the Village develop and adopt written policies and procedures, which ensure capital assets are being properly monitored and accounted for. In addition, management should take steps to ensure that these policies are adhered to and properly applied. Current Year Status: All of the recommendations above have been implemented, except for #4. This comment will be repeated. Management's Response: The Village plans on developing and establishing policies and procedures to be in place for 2007 and taking a physical inventory of its capital assets. No. 2000-08 Personnel Policies and Procedures During prior audits over payroll and analysis of internal controls over payroll, it was noted that the Village has not developed a written personnel policies and procedures manual. As a result, it was noted that personnel policies were not consistent between departments of the Village. By not having written personnel policies, the Village is exposing itself to risks associated with potential claims from personnel related matters. In addition, employee duties and responsibilities are not defined resulting in inefficiencies in the Village's operations, Recommendation: It was recommended that the Village develop and adopt a written personnel policies and procedures manual. Once written and adopted, Village management should take steps to ensure that these policies are being followed and adhered to. Current Year Status: As of September 30, 2006, the Village had not established a written personnel manual. Comment will be repeated. Management's Response: The Village is in the process of developing and establishing policies and procedures to be in place for 2007- 2008. It has currently issued memos to Village staff communicating what the policies are and policies are also included in the union contracts, I I I III. STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS - (CONTINUED) No. 2000-09 Compliance with Laws and Regulations I I During the performance of prior audits, it was noted numerous violations with the Village's compliance with applicable laws and regulations. The following summarizes those findings: I 1, There was no documentary evidence to support budget amendments or reappropriations for fiscal year 2000. 2, In addition, expenditures exceed appropriations for Building Code Enforcement Capital Outlay and Debt Services (Leases). I 3, There are no formally adopted written policies and procedures to help ensure the Village complies with State laws and regulations. I While no matters came to the attention of the prior auditors that indicated that action had been taken against the Village for these violations, the possibility does exist that action could be taken by the State, if these violations are not addressed and properly corrected, I Recommendation: It was recommended that the Village take immediate action in curing its existing violations of laws and regulations. Upon clearing these issues, the Village should take steps to develop and adopt formal written policies and procedures, which address compliance with all applicable laws and regulations. Management should also take steps to ensure that once established these policies and procedures be properly applied and adhered to. I I Current Year Status: The Village had no expenditures in excess of appropriations during 2006 and there were no findings relating to support for budget amendments, However, the Village has not established written policies to ensure compliance with laws and regulations. Comment #1 and #2 above, will not be repeated, but Comment #3 will be repeated. I Management's Response: The Village plans on developing and establishing policies and procedures to be in place for 2007. I REPORTABLE CONDITION No. 2005-01 Financial Condition Assessment I Condition: In connection with our audit of the Village, we applied financial condition assessment procedures pursuant to Section 10.556(8), Rules of the Auditor General, to determine if deteriorating financial conditions exist that may cause a financial emergency to occur if actions are not taken to address such conditions. The results of our assessment indicated that the Entity's overall financial condition is deteriorating. I I The Village's total unreserved fund balance has been declining over the past three years due to recurring losses in its General Fund, Recurring losses indicate that revenues are not sufficient to cover expenditures or that expenditures are excessive, I Effect: By not taking the steps necessary to reverse these losses, the Village will continue to deplete its unreserved fund balance until the point that it reaches a State of Financial Emergency, I Recommendation: We recommend that the Village research all possible venues to reduce costs or increased revenues or both to stop the recurring deficits and declining unreserved fund balance in the General Fund, I I I I I III. STATUS OF PRIOR YEAR FINDINGS AND RECOMMENDATIONS - (CONTINUED) I I Current Year Status: See Note XI in the Footnote to the basic financial statements. The Village's financial condition assessment improved from an unfavorable to an inconclusive, However, comment will be repeated for follow-up during the 2006-07 fiscal year. I Managemenfs Response: During 2006, the Village implemented several cost containment measures, which together with rising property values and higher than anticipated revenues resulted in an improved financial condition for 2006 compared to 2005. The general fund reported an excess of revenues over expenditures of approximately $123,565 and overall all governmental funds reported an excess of revenues of $225,174 for the current year. I I Management will continue to search for ways to contain costs while providing the same level of services to the residents of the Village. For 2006-07, the Village Council voted to increase the Millage Rate to 9,2 and we have budgeted surpluses in the General Fund of $66,000, OTHER MATTERS I No. 2005-02 Develop and Document a Disaster Recovery Plan I During our testing of the Village's policies and procedures, we noted that the Village does not have a plan of action in case its offices should be destroyed by a fire, natural disaster such as a flood or hurricane, or a terrorist act. Such a disaster could strike at any time, perhaps without warning, In that case, the Village would have to act quickly to determine and preserve employees' safety and to take steps critical to assessing and recovering from loss of, or damage to, its personnel; premises; furniture and equipment; electronic files; and communications with employees, vendors, and customers, I Recom mendation: We recommend that the Village establish a written disaster recovery plan as part of its policies and procedures manual. I Current Year Status: A written disaster recovery plan has not been prepared. The Village is currently finalizing a disaster recovery plan for the police department. This comment will be repeated. I I Management's Response: We agree with the auditors' recommendation and will include a disaster recovery plan as part of our policies and procedures manual. I II I I I I I I I I I I I I I I I II I I I I I I I I I I MANAGEMENT LETTER REQUIRED BY SECTION 10.550 OF THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA Honorable Mayor and Members of the City Council City of SAMPLE, Florida We have audited the financial statements of the City of SAMPLE, Florida, as of and for the fiscal year ended September 30, 2006, and have issued our report thereon dated December 8, 2006, We conducted our audit in accordance with United States generally accepted auditing standards, and Government Auditing Standards issued by the Comptroller General of the United States. We have issued our Independent Auditor's Report on Internal Control over financial reporting and on Compliance and Other Matters. Disclosures in that report, which are dated December 8, 2006, should be considered in conjunction with this management letter. Additionally, our audit was conducted in accordance with the provisions of Chapter 10.550, Rules of the Auditor General, which govern the conduct of local governmental entity audits performed in the State of Florida and require that certain items be addressed in this letter. The Rules of the Auditor General (Section 10.554(1)(h) 1.) require that we address in the management letter, if not already addressed in the auditor's reports on compliance and internal controls, whether or not recommendations made in the preceding annual financial audit report have been followed. The recommendations made in the preceding annual financial audit report have been corrected except as noted below under the heading Status of Prior Year Findings and Recommendations. As required by the Rules of the Auditor General (Section 10,554(1 )(h) 2.), the scope of our audit included a review of the provisions of Section 218.415., Florida Statutes, regarding the investment of public funds. In connection with our audit, we determined that the City of SAMPLE, Florida complied with Section 218.415, Florida Statutes, The Rules of the Auditor General (Section 10,554(1 )(h) 3,) require that we address in the management letter any findings and recommendations to improve financial management, accounting procedures, and internal controls. In connection with our audit, we have reported our recommendations below under the heading Current Year Recommendations, The Rules of the Auditor General (Section 10.554(1 )(h) 4,) require disclosure in the management letter of the following matters if not already addressed in the auditor's reports on compliance and internal controls or schedule of findings and questioned costs and are not clearly in consequential: (1) violations of laws, rules, regulations, and contractual provisions that have occurred, or are likely to have occurred; (2) improper or illegal expenditures; (3) improper or inadequate accounting procedures (e. g., the omission of required disclosures from the financial statements); (4) failures to properly record financial transactions; and (5) other I I I I I ,I I I I I I I I I I I I I I Honorable Mayor and Members of the City Council City of SAMPLE, Florida inaccuracies, shortages, defalcations, and instances of fraud discovered by, or that come to the attention of, the auditor. Our audit disclosed the following matters required to be disclosed by Rules of Auditor General (Section 10.554(1 )(h)4.): .:. Status of Prior Year Findings and Recommendations: No. 2004-02 and 2001-1 .:. Current Year Findings and Recommendations: NONE The Rules of the Auditor General (Section 10.554(1 )(h) 5.) also require that the name or official title and legal authority for the primary government and each component unit of the reporting entity be disclosed in the management letter, unless disclosed in the notes to the financial statements. The City was incorporated by Chapter 5799, Laws of Florida, Acts of 1907, There are no component units related to the City As required by the Rules of the Auditor General (Section 10,554(1)(h)6.a.), a statement must be included as to whether or not the local government entity has met one or more of the conditions described in Section 218,503(1), Florida Statutes. In connection with our audit, we determined that the City of SAMPLE, Florida did not meet any of the conditions described in Section 218.503(1), Florida Statutes. As required by the Rules of the Auditor General (Section 10.554(1 )(h) 6.b.), we determined that the annual financial report for the City of SAMPLE, Florida for the fiscal year ended September 30,2006, filed with the Florida Department of Financial Services pursuant to Section 21 8.32(1 )(a), Florida Statutes, is in agreement with the annual financial audit report for the fiscal year ended September 30, 2006. As required by the Rules of the Auditor General (Sections 10.554(h) 6.c. and 10.556(7), we applied financial assessment procedures. It is management's responsibility to monitor the City's financial condition, and our financial condition assessment, which was performed as of the City's fiscal year end, was based on representations made by management and the review of financial information provided by the City. This management letter is intended solely for the information of the City of SAMPLE, Florida and management, and the State of Florida Office of the Auditor General, and is not intended to be and should not be used by anyone other than these specified parties. We wish to thank the City of SAMPLE, Florida, and the personnel associated with it, for the opportunity to be of service to them in this endeavor as well as future engagements and the courtesies extended to us. December 8, 2006 Coral Gables, FL I I I I I I I I I I I I I I I I I I I SECTION 11- FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS A. CURRENT YEAR FINANCIAL STATEMENT FINDINGS NONE I I I I I I I I I I I I I I I I I I I --" SECTION 11- FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS B. STATUS OF PRIOR YEAR FINDINGS Reportable Conditions No. 2005-1 - Violations of City's Purchasing Policies and Procedures CONDITION: 1) During our testing of the golf course operations, we were informed of several instances of noncompliance with the City's purchasing policy. The policy requires a competitive bidding process on contractual services, which exceed $10,000; three written quotes on purchases ranging from $5,001 to $9,999 and three verbal quotes on purchases ranging from $1,001 to $5,000. On both instances, no competitive bidding or written quotes were obtained. 2) The City's purchasing policy also requires a purchase order to be prepared and approved before the goods are ordered. We were informed of several instances in which management of the golf course operations initiated the purchasing process after the goods were received, 3) During our testing of the golf course operations, we were informed that there was an agreement with a Canadian company to bring Canadian golfers to play at the City's golf course for $24 per round. The City's management is not aware of this agreement being presented to them by the golf course's management company and it was never presented to the Council for approval. (Also see finding 2005-2) CAUSE: 1) Payment was processed without Council approval. 2) The private management company in charge of golf course operations is not complying with the City's purchasing policies. 3) The private management company in charge of golf course operations is not adhering to City policies and procedures over the establishment of golf course fees. EFFECT: The City's Purchasing Policies and Procedures and City Code of Ordinance are not being complied with. RECOMMENDATION: We recommend that the City implement procedures to ensure compliance with its purchasing policies. We also recommend that the City implement controls over the operations of the golf course management company as well as overall golf course operations, CURRENT YEAR STATUS/MANAGEMENT RESPONSE: The management company was terminated on February 28, 2006. The golf course operation became a City department and a new department head was hired to oversee the operations. All financial activities are controlled by the City's finance department using the same policies, procedures, and controls in place for all City operations, This comment will not be repeated. I I I I I I I I I I I I I I I I I I I SECTION 11- FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS (CONTINUED) B. STATUS OF PRIOR YEAR FINDINGS (CONTINUED) Reportable Conditions No. 2005-2 - Cash Management CONDITION: 1) During 2005, the City implemented a new point of sale system at the golf course. With the implementation of the new system, the City was able to discover a fee arrangement with a Canadian company to bring Canadian golf players to play for $24 per round. The cashiers were instructed to charge a round fee of $18.69 plus a 7% sales tax totaling $20 and the remaining $4 were placed in an envelope for the Canadian company as a commission, The City found that this arrangement had been in place for three to four years and there were no records of the contract with the Canadian company being presented to the City's management or City Council for approval. (See finding 2005- 1). Therefore, the City never reported the $4 commission to the I RS, and the related transaction was never properly accounted for, 2) During 2005, the golf course's management company notified the City that it would deduct $2 from all tournament fees to be paid as gratuity to the staff working the tournament. This fee arrangement was not approved by City Council and since the City's finance department was not aware of this arrangement, the gratuities were never reported in the receiving employees W-2 statements. CAUSE: 1) A lack of internal control over the recording of revenues at the golf course. 2) A breach in communication between the actions of the golf course management company with the City's management and Council. EFFECT: The golf course management company violated the City's internal controls over cash management. The City is exposed to a potential tax liability because of the improper reporting of these transactions. RECOMMENDATION: We recommend that the City implement policies and procedures over all golf course operations to ensure compliance with all City, State, and federal requirements and ordinances. CURRENT YEAR STATUS/MANAGEMENT RESPONSE: The management company was terminated on February 28, 2006. The golf course operation became a City department and a new department head was hired to oversee the operation. All financial activities are performed and controlled by the City's finance department using the same policies, procedures, and controls in place for all City operations. A new point of sale computer system was installed to improve revenue collections and controls. This comment will not be repeated. I I I I I I I I I I I I I I I I I I I SECTION 11- FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS (CONTINUED) B. STATUS OF PRIOR YEAR FINDINGS (CONTINUED) Other Matters No. 2004-2 Enterprise fund deficits CONDITION: During our testing of the enterprise funds we noted that the Sanitation Fund had an operating loss of approximately $124,000 during 2004. The fees charged to the City by Miami-Dade County for waste disposal have increased; however, there's been no adjustments to rates charged to the residents for these services. We also noted that the Water & Sewer Fund and the Sanitation Fund had deficits in unrestricted net assets of approximately $278,000 and $51,000, respectively. These deficits in unrestricted net assets represent negative reserves for future repairs and improvements to the City's Utility System. CURRENT YEAR STATUS/MANAGEMENT RESPONSE: The City Council approved a 55% increase in water and sewer rates effective 10/1/05, the rate increases generated revenues in excess of expenses of approximately $1,102,148 and no transfers from the General Fund were needed to cover operations. Also, the fund now has a positive unrestricted net asset balance of $44,821. However, the Sanitation fund continues to experience operating losses and for 2006 the fund had a negative working capital and a deficit unrestricted net asset balance. We recommend that the City raise its current sanitation rates to cover operations. This comment will be repeated. Reportable Conditions No. 2002-10 Lack of controls over golf course operation CONDITION: As a result of the performance of certain procedures over the Golf Course and Country Club operations, we noted a lack of internal control over cash receipts, cash disbursements, payroll, and general operations, i) We noted that there is no formal policy for verifying the customer's residence for the use of the discounted resident rates. A formal policy should be established for verifying the customer's residence as well as the residence of individuals accompanying the resident golfer. ii) Once the Pro Shop closes, the sale of tokens for a basket of golf balls for the drive range is handled by a part-time employee, which sells the tokens from a booth. There are no controls in place to ensure that all baskets of golf balls were paid for at the end of the day. There is a vending machine that can be used for this service however the machine is out of service most of the time, CURR~NT YEAR STATUS/MANAGEMENT RESPONSE: The management company was terminated on February 28, 2006. The golf course operation became a City department and a new department head was hired to oversee the operation. All financial activities are performed and controlled by the City's finance department using the same policies, procedures, and controls in place for all City operations. A daily reconciliation of range ball sales is performed to ensure that all revenues are collected, this reconciliation is agreed to the sales reports generated by the new software. All pro shop staff now checks driver's licenses to ensure residency requirement. This comment will not be repeated. I I I SECTION 11- FINANCIAL STATEMENT FINDINGS AND RECOMMENDATIONS (CONTINUED) B. STATUS OF PRIOR YEAR FINDINGS (CONTINUED) Other Matters I I 2002-14 Financial Condition Assessment CONDITION: In connection with our audit of the City, we applied financial condition assessment procedures pursuant to Section 10.556(8), Rules of the Auditor General, to determine if deteriorating financial conditions exist that may cause a financial emergency to occur if actions are not taken to address such conditions. The results of our assessment indicated that the entity's overall financial condition is deteriorating. II I I I The City total unreserved fund balance/retained earnings has been declining over the past few years due to recurring losses in its Water and Sewer and Golf Course Operations Funds. Recurring losses indicate that revenues are not sufficient to cover expenditures or that expenditures are excessive. CURRENT YEAR STATUS/MANAGEMENT RESPONSE: The financial condition assessment for 2006 showed improvements from the 2004 and 2005 assessments and was favorable, Although the Golf Course Fund continued to recognize significant deficiencies in revenues over expenditures, these appear to be the result of one time expenditures caused by course renovations and Hurricane Wilma repairs. The course was closed for several months due to renovations and repairs. The water and sewer funds generated revenues in excess of expenses for 2006 due to rate increases; however, the sanitation funds continued to incur operating losses, This comment will not be repeated. I I I I I I No. 2001-01 Golf Course Fund CONDITION: We noted that the City operates a Golf Course Fund, which is very costly to the City and has been operating under a deficit since its inception during fiscal year 1998. It may be more cost effective for the City to sell or discontinue operations of the Golf Course Fund. CURRENT YEAR STATUS/MANAGEMENT RESPONSE: The management company was terminated on February 28, 2006. The golf course operation became a City department and a new department head was hired to oversee the operation, All financial activities are controlled by the City's finance department using the same policies, procedures, and controls in place for all City operations. The Golf Course continued to incur losses in 2006 due to one time expenditures for renovations and repairs due to the transition of the food and beverage operations to an outside contractor and due to damages caused by Hurricane Wilma. In 2007, the Golf Course will operate for a full year under the new management system and the City expects the Golf Course to generate enough revenue to cover its operations. This comment will be repeated. I I I I I I I I I I I I I I I I I I I I I I I SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS C. CURRENT YEAR FINDINGS NONE D. PRIOR YEAR FINDINGS NONE