HomeMy WebLinkAboutGrau & Assoc.
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PROPOSAL TO PROVIDE
PROFESSIONAL AUDIT SERVICES
FOR THE
CIty 01 Sumy ... ISMCh
01fIce of the Cl Clerk
CITY OF SUNNY ISLES BEACH
OF SUN
TO AUDIT FINANCIAL STATEMENTS FOR THREE YEARS, WITH THE
INITIAL FISCAL YEAR ENDING SEPTEMBER 30, 2007.
THE CITY WILL CONSIDER AN OPTION OF AUDITING THE FINANCIAL
STATEMENTS AN ADDITIONAL TWO FISCAL YEARS,
FOR A TOTAL OF FIVE AUDITS.
RFP #07-04-01 PROFESSIONAL AUDIT SERVICES
PROPOSAL DUE: MAY 4, 2007 BY 10:00 AM
'r'~r~~;f~d ~~~~:~?n~:~
2700 North Military Trail, Suite 350, Boca Raton, FL 33431
Telephone: (561) 994-9299, Fax: (561) 994-5823, Watts: (800) 299-4728
Contact Person: Antonio Grau, Jr., CPA
tonv@qraucpa.com
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CITY OF SUNNY ISLES BEACH
TABLE OF CONTENTS
PAGE
VI. PROPOSAL REQUIREMENTS
A. GENERAL REQUIREMENTS
TRANSMITTAL LETTER ........................................................................................................................1-3
B. PROPOSAL
1. GENERAL REQUIREMENTS .......................................................................................................... 4
2. IN DEPEN DENCE........... ................ ... ................... ............. ................ ................... ......................... ...4
3. LICENSE TO PRACTICE IN FLORIDA ...........................................................................................4
4. FIRM QUALIFICATIONS AND EXPERIENCE ...........................................................................4-10
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND EXPERIENCE................11-24
6. PRIOR ENGAGEMENTS WITH THE CITY OF SUNNY ISLES BEACH....................................... 24
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES...................................25-33
8. SPECIFIC AUDIT APPROACH
a. PROPOSED SEGMENTATION OF THE ENGAGEMENT ................................................34-36
b. LEVEL OF STAFF TO BE ASSIGNED TO EACH PROPOSED SEGMENT OF THE
ENGAG EMENT .......................................................... ............................................................. 36
c. SAMPLE SIZE AND THE EXTENT TO WHICH STATISTICAL SAMPLING IS TO BE USED
IN THE ENGAGEMENT ..........................................................................................................37
d. EXTENT OF USE OF IMS SOFTWARE IN THE ENGAGEMENT..................................... 37-38
e. TYPE OF EXTENT OF ANALYTICAL PROCEDURES TO BE USED IN
TH E ENGAGEMENT................... ............................................................................................ 38
f. APPROACH TO BE TAKEN TO GAIN AND DOCUMENT AN UNDERSTANDING OF
THE CITY'S INTERNAL CONTROL STRUCTURE ................................................................ 39
g. APPROACH TO BE TAKEN IN DETERMINING LAWS AND REGULATIONS THAT WILL
BE SUBJECT TO AUDIT TEST WORK .................................................................................. 40
h. APPROACH TO BE TAKEN IN DRAWING AUDIT SAMPLES FOR PURPOSES OF TESTS
OF COMPLIANCE.......................................................................................... .........................40
i. ASSISTANCE TO BE PROVIDED IN MEETING THE REQUIREMENTS OF THE
"CERTIFICATE OF EXCELLENCE IN FINANCIAL REPORTING" .........................................41
j. PROCESS TO PRODUCE A MEANINGFUL "MANAGEMENT LETTER." INCLUDE THREE
RECENT "MANAGEMENT LETTERS" DEVELOPED IN CONNECTION WITH LOCAL
GOVERNMENT AUDITS.................................................................................................... 41-42
k. INTERNAL QUALITY CONTROL PROCEDURES AND EXTERNAL QUALITY CONTROL
REVI EW..................................... .......................... ..... ......... ................... .... .... .... ......... ....... .... ...43
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CITY OF SUNNY ISLES BEACH
TABLE OF CONTENTS
VI. PROPOSAL REQUIREMENTS
PAGE
B. PROPOSAL
9. IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT PROBLEMS...................................... 43
C. NOT -TO-EXCEED DOLLAR COST BID .................................................................................................. 43
SU PPLEMENT AL IN FORMATION................. ....................................................................................... 44-45
CONCLUSION ............................... .... ....... ................. .............................. ...................... ...................46-47
APPENDIX A - NOT-TO-EXCEED DOLLAR COST BID
APPENDIX B - EVIDENCE OF LICENSES
APPENDIX C - PROPOSER GUARANTEES AND WARRANTIES AND STANDARD TERMS &
CONDITIONS
APPENDIX D - SWORN STATEMENT PURSUANT TO SECTION 287.133(3)(a), FLORIDA
STATUTES, ON PUBLIC ENTITY CRIMES
APPENDIX E - NON-COLLUSIVE AFFIDAVIT
APPENDIX F - THREE RECENT "MANAGEMENT LETTERS" DEVELOPED IN CONNECTION WITH
LOCAL GOVERNMENT AUDITS
APPENDIX G - STANDARD SERVICES AND CONSULTING AGREEMENT
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'rr;~r~~if~d ~~~~~~~!~~
2700 North Military Trail, Suite 350
Boca Raton, Florida 33431
(561) 994-9299 . (800) 299-4728
Fax (561) 994-5823
www.qraucpa.com
May 2,2007
Office of the City Clerk
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
Re: To audit financial statements for three years, with the initial fiscal year ending
September 30, 2007. The City will consider an option of auditing the financial
statements an additional two fiscal years, for a total of five audits.
To Whom It May Concern:
Grau & Associates (Grau) appreciates the opportunity to respond to your Request for
Proposal for the City of Sunny Isles Beach (City). Grau & Associates fully understands the
scope of professional services and work products requested in this RFP. Our audit will follow
the Generally Accepted Auditing Standards of the AICPA, Government Auditing Standards,
issued by the Comptroller General of the United States, and the Rules of the Auditor General
of the State of Florida and any other applicable Federal, State or local regulations. We will
deliver our reports in accordance with your requirements.
Grau is the successor firm to the Grau & Company audit and attestation services practice for
the Boca Raton office. We are a South Florida professional association / licensed Certified
Public Accounting firm based out of Boca Raton. We have orovided aovernmental auditina
services in Florida for the past 28 years. Grau is a member of the American Institute of
Certified Public Accountants and Florida Institute of Certified Public Accountants.
Q Grau & Associates has an IMPECCABLE REPUTATION:
., Grau has never been involved in any litigation, proceeding or disciplinary action
.; Grau has never been charged with or convicted of a public entity crime
o Grau's Focus on Governmental Audits/Established Presence:
. Last year, Grau performed:
· 173 audits under Governmental Auditing Standards, and
· performed in excess of 19,000 hours of services for our Public Sector Clients
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City of Sunny Isles Beach
May 2, 2007
Page 2
~ Grau provides Personalized Services/Immediate Responsiveness/
Smooth Transition:
., Offers a "Client-Friendly Approach:" We will work with the City to resolve any
issues and ooen the lines of communication, so there will be no surprises! Along
these lines, our Engagement Partner will report on a reaular basis of any potential
audit adjustments, to allow the City appropriate time to respond and research.
. Always Only a "Phone Call A wav": Weare accessible to Clients 24 hours / Z
days a week regarding any comments / questions / concerns.
. Stays Involved the Entire Year - We will make suggestions to improve the
City's Performance I Procedures I Controls:
Because our team does not fall into the accepted "ticking and tying"
mentality, we understand the "big picture" and think beyond the
traditional auditor's perspective. Throughout the entire year, we will
update, advise and educate the City as to all new and/or revised reporting
requirements, to assure the City's compliance with same.
~ Experienced Personnel On-the-Job - Our ManaQement Team:
.., has 63 total years, over SIX DECADES, of governmental experience
~ averages over 16 years of professional practice in the governmental audit field
~ has a very low staff turnover (Unlike auditors from most firms, our professionals
focus the majority of their time working exclusively with governmental entities)
~ is comprised of experienced Firm Management (Partner, Consultant, Manager,
Senior) whom will constitute 100 percent of total engagement resources.
~ NET RESUL T: our Management Team averages over 10 years workina toaether as
a TEAM
We humbly ask you to compare our Engagement Team to our peer
competitors' assigned teams. We are confident you will not see another firm
assigning as exoerienced a team to your engagement.
o Ability to Furnish the Required Services:
Grau & Associates affirms that it has the professional staff available to perform
the engagement and that all of its resources will be available to complete the
work. Grau has been in business for 28 years, is financially stable, and has never
been involved in any bankruptcy proceedings. Grau has a disaster recovery plan
which includes backing up all data on a daily basis and offsite storage. Grau also
has a line of credit which provides for the ability to borrow up to $416,000 for cash
flow needs.
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City of Sunny Isles Beach
May 2, 2007
Page 3
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
our proposal is in all respects fair, without outside control, collusion, fraud, or otherwise
illegal action, and were prepared in good faith. Only the person(s), company or parties
interested in the project as principals are named in the proposal. Grau has no existing or
potential conflicts, and anticipates no conflicts during the engagement.
Antonio Grau, Jr., CPA, Partner, is authorized to make representations for and to bind the
firm. He can be reached at (561) 994-9299. His e-mail addressistony@qraucpa.com.
Grau's Federal I.D. Number is 20-2067322. 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,
Grau & Associates
}/-"
/ ~
t:Y"?~ ~~....---
Antonio Grau, Jr.
'rr;Cfr?~;f~d ~~~~~~~,!~~
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v,~ PROPOSAL REQ,UIREMENTS
8~PROPQI4L
1. GENERAL REQUIREMENTS
Grau agrees to adhere to the instructions in this Request for Proposal for preparing and
submitting the proposal.
2. INDEPENDENCE
Grau & Associates affirms we meet the independence requirements of the Standards for
Audit of Governmental Organizations Programs, Activities and Functions published by
the U.S. General Accounting Office, Governmental Auditing Standards (GAS) issued by
the Comptroller General of the United States and the Laws and Rules of Florida Board of
Accounting or any subsequent amendments or superseding revisions. As defined by
auditing standards generally accepted in the United States of America and the U.S.
General Accounting office's Government Auditing Standards, we are independent of the
City. Grau & Associates, their partners and employees are independent of the City.
Grau has no conflict of interest as it regards the City.
3. LICENSE TO PRACTICE IN FLORIDA
Grau & Associates is a properly registered/licensed State of Florida professional
corporation. All assigned supervisory professional staff are properly registered/licensed
to practice in the State of Florida. (See APPENDIX B for evidence of licenses.)
4. FIRM QUALIFICATIONS AND EXPERIENCE
GRAU & ASSOCIATES: GOVERNMENT INDUSTRY FOCUS
Grau & Associates is a medium-sized accounting firm (South Florida professional
corporation), located in Boca Raton. Grau provides comprehensive financial and
compliance auditing, attestation and accounting, and other management consulting
services.
By focusing our expertise on governmental entities, we provide the highest level of
financial and compliance auditing and consulting services to our Public Sector Clients.
Q Last year, Grau performed:
". in excess of 19,000 hours of services to our Public Sector
Clients
.. 173 Audits under Government AuditinQ Standards
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v.~ PROPQSAL REQUIREMENT$
B~PI\OPQ~L
4. FIRM QUALIFICATIONS AND EXPERIENCE (Continued)
Grau & Associates' address is 2700 North Military Trail, Suite 350, Boca Raton,
Florida 33431; Telephone: (561) 994-9299; Fax: (561) 994-5823; Watts: (800) 299-
4728.
STAFF
Grau & Associates has a total of 17
employees, 15 professional staff,
including 2 Partners and 13
professionals who specialize in
providing accounting, consulting,
monitoring and auditing services to the
Public Sector. The number of
professional staff by employee
classification is as follows:
~ -GOVERNMENTALAUDITS
92% f \ OTHER AUDITS
~8%
TOTAL PUBLIC SKILLED
PROFESSIONAL TOTAL SECTOR IN
STAFF CPA'S STAFF COMPUTERS
Partner 2 2 2 2
Managers 3 3 3 3
Advisory Consultant 1 1 1 1
Supervisor / Seniors 3 1 3 3
Staff accountants 6 0 6 6
Total 15 7 15 15
ALL FULL TIME EMPLOYEES
The Partners, Consultant and Managers of Grau are members of the American Institute
of Certified Public Accountants and the Florida Institute of Certified Public Accountants.
The Partners and Managers are members of the Florida Government Finance Officers
Association.
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VI! PRQPQIAL REQUIREMENTS
8!PI\QPQ$AL
4. FIRM QUALIFICATIONS AND EXPERIENCE (Continued)
Qualitv Control and Confidentialitv
Grau participates in an external quality review program
requiring an on-site independent examination of our accounting
and auditing practice. Grau & Company has consistently
received an unqualified opinion on the quality of our audit
practice. During our firm's last external quality control review,
seven audits were reviewed, including six government audits.
A COIJY of the reIJort on the firm's most recent Quality review
(and related correslJondence) are on IJaQes 7-9. Note: our
firm's quality control review included a review of specific
aovernmental enaaaements.
In addition to scheduled Peer Reviews, our firm continually
monitors IJerformance to ensure the hiQhest Quality of services.
Under the sUIJervision of the Audit Partner. an Audit Manaaer is
resIJonsible for monitorinQ Quality control of all aIJIJrolJriate
enaaaements.
Only professional staff that works on an engagement has access to
client information.
Results of State and Federal Reviews
All state and federal reviews of the firm's reports and working papers
have been accepted without change or revision to issued reports.
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VI'! PROPOIAL REQUIREMENT$
B~PROPQIAL
4. FIRM QUALIFICATIONS AND EXPERIENCE (Continued)
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Vl~ PRQPQ,IAL REQUIREMENTS
B~ PROPOSAL
4. FIRM QUALIFICATIONS AND EXPERIENCE (Continued)
!(~ ;A~~~
-,
Cerhfil,'d Puhlic A('(('t1nt,lnl<..
di1J <.. on...lIllill1l....
William H. Ha\\c"thorne
whh(a cpa~ass(,)('iatcs.com
]30] Shih IhcBUC West. Suite 600
Brndentun. florida 34205
(94]) 7'17-4~83
Fax (941) 717-8396
\\\\"\\ l'pil-:..,snU?!ll ~ 111'1
October 30, 2004
Mr. Antonio Grau, Jr., CPA
Grau & Company, P.A.
2700 North Military Trail
Suite 350
Boca Raton, Florida 33431
Dear Tony:
Enclosed are two copies ofyoUT peer review report for the year ending June 30,2004. As we
discussed. the report is unqualified and there is no letter of comments.
You should send a copy of the report to the FICPA Peer Review Committee.
Tony, I enjoyed working on this engagcm.:nt and your hospitality very much. You have an
excellent firm and the dedication to quality work is apparent. If we can ever be of help or if you
have any questions please call me.
Sincerely,
~
William I I. Ilawthome. CPA
WHH:
Enclosures
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VI~
PROPOSAL REQUIREMENTS
B~PROPQ8AL
4. FIRM QUALIFICATIONS AND EXPERIENCE (Continued)
f.~CPA
~~} ASSOClATCS
Cf"lllllt'd Puhh, .\n'lll!1r.1l1t~
and C~Jn"ult~\llt,
September 30, 2004
To the Shareholders
Grau & Company, P.A.
We have reviewed the system of quality control for the accounting and auditing practice of Grau
& Company, P.A. (the firm) in effect for the year ended June 30, 2004. A system of quality
control encompasses the firm's organization structure and the policies adopted and procedures
established to provide it with reasonable assurance of confonning with professional standards.
The elements of quality control are described in the Statements on Quality Control Standards
issued by the American Institute of Certified Public Accountants (the AICP A). The design of the
system, and compliance with it, are the responsibilities of the finn. Our responsibility is to
express an opinion on the design of the system, and the finn's compliance with that system based
on our review.
Our review was conducted in accordance with standards established by the Peer Review Board
of the AICP A. In performing our review, we obtained an understanding of the system of quality
control for the firm's accounting and auditing practice. In addition, we tested compliance with
the finn's quality control policies and procedures to the extent we considered appropriate. These
tests covered the application of the firm's policies and procedures on selected engagements.
Because our review was based on selective tests, it would not necessarily disclose all weaknesses
in the system of quality control or all instances of lack of compliance with it.
Because there are inherent limitations in the effectiveness of any system of quality control,
departures from the system may occur and not be detected. Also, projection of any evaluation of
a system of quality control to future periods is subject to the risk that the system of quality
control may become inadequate because of changes in conditions, or because the degree of
compliance with the policies or procedures may deteriorate.
In our opinion, the system of quality control for the accounting and auditing practice of Grau &
Company, P .A. in effect for the year ended June 30, 2004, has been designed to meet the
requirements of the quaJity control standards for an auditing practice established by thc AICPA
and was complied with during the year then ended to provide the firm ,\ith reasonable assurance
of conforming with professional standards.
cl4 Il~
CPA Associates
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VI~ PROPOSAL REQUIREMENTS
B.PRQPOSAL
4. FIRM QUALIFICATIONS AND EXPERIENCE (Continued)
Grau would assign the following firm Engagement Team Members to
your City's Engagement:
1 Partner
1 Consultant
1 Audit Manager
1 Audit Senior
4 TOTAL TEAM MEMBERS
o All of these 4firm team members are Management-level with:
... 63 years of total governmental auditing experience
&
... have worked toaether for S7 of these years!
Thus, Grau & Associates brings City:
... SIX DECADES of Experience
&
." true Engagement Team depth
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VI. PROPOSAL REQUIREMENTS
L PROPOSAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE
QUALITY AND EXPERIENCE OF FIRM'S ASSIGNED AUDITING PERSONNEL
EnQaaement Partner
The engagement will be performed under the direct supervision of an Engagement
Partner. The Engagement Partner has direct responsibility for engagement policy,
direction, supervision, quality control, security and communication with City
personnel. The Engagement Partner will be responsible for the quality control,
supervision and confidentiality of information of the engagement and will participate
extensively during the various stages of the engagement. He will attend meetings,
respond to telephone calls and respond to specific inquiries on a day-to-day
basis as primary point of contact.
He will also be involved in:
Q coordinating all services to the City;
Q directing the development of the overall audit approach and plan;
Q performing an overriding review of work papers;
Q resolving technical accounting and reporting issues;
Q reviewing, approving and signing reports, management letters, and other audit
engagement products;
Q supervising subordinate staff;
Q ascertaining the City is pleased with all aspects of our engagement, such as
services and the personnel assigned;
o leading meetings and discussions with key management personnel; and
o meeting with governing board to present audit reports.
Antonio Grau, Jr., CPA will be the Engagement Partner. Mr. Grau has
extensive experience in governmental audits, and has performed governmental audits
for the last 22 years. He will devote a substantial part of his time to the completion of
the work.
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VI.. PROPOSAL REQUIREMENTS
B.. PROPOSAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
QUALITY AND EXPERIENCE OF FIRM'S ASSIGNED AUDITING PERSONNEL (Continued)
Audit Manaaer
The Audit Manager will be assigned full time and will work closely with the partners.
He will be responsible for the overall review of the work and compliance with the firm's
and regulatory compliance requirements. He will ensure that the financial statements,
and all other reports are prepared in accordance with professional standards and firm
policy.
He will be responsible for all phases of the fieldwork and he will be:
o supervising subordinate staff;
o planning the audit;
o preparing or modifying audit programs, as needed;
o evaluating the internal control of the computer department;
o evaluating internal control and assessing risk;
<:) reviewing work papers for compliance with audit requirements and completeness;
<:) communicating with the City and the partners the progress of the audit; and
o reviewing financial statements and all reports issued by the firm for accuracy,
completeness and that they are prepared in accordance with professional standards
and firm policy.
R. Brent Rogers, CPA will be the Audit Manager and a designated "KEY"
MEMBER. Mr. Rogers was selected because of his extensive experience in
governmental and non-profit audit engagements. He will devote 100% of his
time to the completion of the work.
Senior Accountant
A Senior assigned full-time to the engagement will have the responsibility for executing
the day-to-day work and will perform more complex audit procedures. The Senior will
also be responsible for directing staff on the engagement.
Tatiana Mora will be the Senior. Ms. Mora has been performing governmental
audits for 6 years. She will devote 100% of her time to the completion of the work.
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VI.. PROPOSAL REQUIREMENTS
B.. PROPOSAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
QUALITY AND EXPERIENCE OF FIRM'S ASSIGNED AUDITING PERSONNEL (Continued)
ConcurrinQ Review and Advisory Consultant
A Concurring Review Consultant will be available as a sounding board to advise in
those areas where problems are encountered. He will also perform a second review of
all reports to be issued by Grau & Associates.
Antonio Grau, Sr., CPA will be the Concurring Review Consultant. Mr. Grau
has been involved in performing governmental audits for 26 years. Mr. Grau is the
Concurring Review Consultant on all the governmental audits of the firm. He has
obtained the Certificate of Educational Achievement in Governmental and Not-For-
Profit Accounting and Auditing from the American Institute of Certified Public
Accountants.
'rr;~rc;.~if~d ~;~~~~~~:~
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VI. PROPOSAL REQUIREMENTS
B.PROPOSAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
GRAU's AUDIT MANAGEMENT TEAM CPAs' YEARs
of
GOVERNMENTAL AUDITING EXPERIENCE
and
YEARS WORKING TOGETHER as a TEAM
ANTONIO J. GRAU, CPA (Engagement Partner):
g 22 YEARS of TOTAL GOVERNMENTAL AUDITING EXPERIENCE
g 22 YEARS WORKING as a TEAM on GOVERNMENTAL AUDITS
ANTONIO S. GRAU, CPA (Concurring Review Consultant):
Q 26 YEARS of TOTAL GOVERNMENTAL AUDITING EXPERIENCE
Q 21 YEARS WORKING as a TEAM on GOVERNMENTAL AUDITS
R. BRENT ROGERS, CPA (Manager):
g 9 YEARS of TOTAL GOVERNMENTAL AUDITING EXPERIENCE
Q 9 YEARS WORKING as a TEAM on GOVERNMENTAL AUDITS
TATIANA MORA (Senior):
Q 6 YEARS of TOTAL GOVERNMENTAL AUDITING EXPERIENCE
g 5 YEARS WORKING as a TEAM on GOVERNMENTAL AUDITS
63 TOTAL YEARS, GOVT. AUDITING EXPERIENCE
57 TOTAL YEARS WORKING TOGETER as a TEAM
'~r;~r~~if~d ~~~~~~~!(:,~
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VI.. PROPOSAL REQUIREMENTS
B..PROPOSAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
Grau's audit team whom 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 (1) one Partner and
Consultant, who have been involved TOGETHER in the audits of government entities
for 22 years (2) one Manager who has 9 years experience in governmental audits and
(3) one Senior with extensive experience in governmental audits.
Your entire Engagement Team (including staff) has:
SIX DECADES of Governmental Auditing Experience
and
has WORKED TOGETHER this entire period
Estimated Percent
oft otal Hours
ANTONIO J. GRAU 22 YEARS OF TOTAL GOVERNMENTAL AUDITING EXPERIENCE ) II-
ENGAGEMENT PARTNER 22 YEARS WORKING WITH OUR GOVERNMENTAL AUDIT TEAM 20%1:
ANTONIO S. GRAU 26 YEARS OF TOTAL GOVERNMENTAL AUDITING EXPERIENCE :is
CONCURRING REVIEW AND 21 YEARS WORKING WITH OUR GOVERNMENTAL AUDIT TEAM
ADVISORY CONSULTANT 1&1
I~ 80%
R BRENT ROGERS 9 YEARS OF TOTAL GOVERNMENTAL AUDITING EXPERIENCE -+
MANAGER 9 YEARS WORKING WITH OUR GOVERNMENTAL AUDIT TEAM 30% I <C
IZ
T A TIANA MORA 6 YEARS OF TOTAL GOVERNMENTAL AUDITING EXPERIENCE -+ 30%1:
SENIOR 5 YEARS WORKING WITH OUR GOVERNMENTAL AUDIT TEAM
I
,
STAFF AUDITORS 2-3 YEARS OF TOTAL GOVERNMENTAL AUDITING EXPERIENCE 20%
1-2 YEARS WORKING WITH OUR GOVERNMENTAL AUDIT TEAM
TOTAL = JOO%
80 PERCENT OF THE ENGAGEMENT WILL BE PERFORMED BY "MANAGEMENT"
Grau's engagement team's workload is organized in such a way
that additional activities brought about by this engagement will not
impact our current commitments to our clients. We have sufficient
staff capacity to integrate these professional services for the City
into our present operations, while continuing to maintain the
highest standards of quality and time lines for our clients. The
Manager and Senior will devote all of their time to performing the
City's audit engagement.
CONTINUITY
OF STAFF
AND AUDIT
TEAM
'rr;c:rr;.~if~d ~;~~~~~,~:~
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VI" PROPOSAL REQUIREMENTS
B.PROPOSAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
Qualitv of the Staff Over the Term of the Enaaqement
Despite the current market, Grau & Associates has a very low turnover of
employees. The Engagement Partner and Audit Manager will be designated "KEY"
MEMBERS. We pledge to the City they will be returned to the audit each year of
the engagement. In the unlikely event that it does become necessary to replace any
of the engagement team members, we will notify the City. We understand the City's
right to accept or reject replacements. In addition to the engagement team members
proposed herein, we also have other, well-qualified professionals who stand ready to
serve the City's needs, if required.
Grau can assure the highest professional qualifications of the staff we will utilize
for the City's engagement.
In addition to our governmental focus, it is Grau's policy that all professional employees
earn more than the minimum CPE credits required for governmental audits. Further,
because we are a growing firm, we have an ongoing recruitment program that seeks
only those accountants with a proven record of academic success. When we recruit at
the senior and manager level, we select CPA's with proven governmental accounting
and auditing experience.
ComlJosition of Enaaaement Team
In contrast to the majority of both national
and local firms, Grau's proposed
engagement team is comprised of an
excelJtionallv larae lJercentaae of hiah-
level audit IJrofessionals. This gives us
the ability to auicklv recoanize problems
and be more efficient as a result of our
Team's
SIX DECADES of
governmental auditing experience.
Estimated
Percent
of Total Hours
20%
{Partner
Consultant
Manager
Senior
Staff
80% {
MANAGEMENT
30
30
20
roo~
Total
30% . PARTNER/CONSULTANT
MANAGERS
. SENIOR
STAFF
30%
...Vm
20%
80 percent of engagement is performed by MMANAGEMENT"
50 percent of engagement is performed by MSENIOR MANAGEMENT"
'Tr;~r~~if~d ~;~~~~,~,!:~
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VI. PROPOSAL REQUIREMENTS
B.PRQPOSAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
Composition of Grau's EnqaQement Team
In contrast to the majority of both national and other local firms, Grau's proposed
engagement team is comprised of an exceotionallv larae Dercentaae of Hiah-
Level Audit Professionals.
Grau & Associates
30%
. PARTNER/CONSULTANT
MANAGERS
. SENIOR
STAFF
20%
80 percent of engagement is performed by "Management"
vs.
Typical Local CPA Firm:
Typical National CPA Firm
~
- PARTNERS
MANAGERS
. SENIOR
ST AFF
45%
55%~
......:
20%
20%
Fifty-five percent of engagement is
performed by "Management"
10%
~
- PARTNERS
MANAGERS
. SENIOR
STAFF
15%
~"
j' 20%
--
Forty-five percent of engagement is
performed by "Management"
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VI.. PROPOSAL REQUIREMENTS
B..PROPOSAL
5. PARTNER, SUPERVISORY
EXPERIENCE (Continued)
STAFF
QUALIFICATIONS
AND
AND
Antonio G'au~ Jr..~ CPA~ e-mail:
tonY@Qraucpa.com
Position
ENGAGEMENT PARTNER
Education
Bachelor of Arts, Business Administration, 1983 University of South Florida; Accredited in
Business Valuation by the AICPA, 1998; Personal Financial Specialist, 1997
Professional
History
· CPA, in Florida since February 28, 1985, Certificate No. 15330
· Partner of Grau & Associates since 2006
. Partner of Grau & Company 1995-2005
· Audit manager and staff accountant of Grau & Company 1987 to 1995
. Auditor with an international accounting firm, 1985 to 1986
. Staff accountant of Grau & Company, 1983 to 1984
Clients
Served
Mr. Grau is the engagement partner on all governmental audits. A partial list of clients served
during the last three years as a partner follows:
· (182) Special Taxing Districts (up to 15 years)
. Atlanta Housing Authority (2 years)
. City of Dania Beach (1 year) (Financial/Utility Audit)
. City of Lauderdale Lakes (2 years) (Financial/Utility Audit)
. City of Lauderhill (2 years) (Financial/Utility Audit)
. City of Lauderhill General Pension (2 years)
. City of Miami Springs (1 year) (Financial/Utility Audit)
. City of North Lauderdale (3 years)
. City of Oakland Park (1 year) (Financial/Utility Audit)
· Delray Beach Housing Authority (1 year)
· East Central Regional Wastewater Treatment Facility (5 years)
· Florida Community College at Jacksonville (2 years)
· Florida Department of Management Services (2 years)
· Greater Boca Raton Park & Beach District (4 years)
. Orlando Housing Authority (2 years)
· Palm Beach County School District (3 years)
· Palm Beach County Workforce Development Board (3 years)
· Peninsula Housing Programs (7 years)
· South Florida Water Management District (3 years)
· Southwest Florida Workforce Development Board (5 years)
. Town of Davie (2 years)
· Town of Hypoluxo (9 years) (Financial/Utility Audit)
· West Palm Beach Housing Authority (2 years)
Professional Educational courses taken during the last three years.
Education Course
Government Accounting and Auditing
Accounting, auditing and other
Total Hours
Hours
48
~
152
Other As a member of the Government Finance Officers Association Special Review Committee, Mr.
Qualifications Grau has participated in the review process for awarding the GFOA Certificate of Achievement
in Financial Reporting, and has reviewed over 40 reports during the past five years.
Mr. Grau was a team member for the Quality Review of the Office of Management Audits of
Miami-Dade County School Board. Mr. Grau has participated in the management review of
the capital outlay program for the Miami-Dade County School Board and Broward County
School Board. Mr. Grau has also audited construction management contracts entered into by
the Miami-Dade County School Board.
Professional · Member, American Institute of Certified Public Accountants
Associations · Member, Florida Institute of Certified Public Accountants
· Member, Florida Government Finance Officers Association
· Member, Government Finance Officers Association
· Member, Florida Institute of Certified Public Accountants Non-Profit Conference Committee
,~'~r~~;f~d ~:~~~~~,~:~
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VI. PROPOSAL REQUIREMENTS
I
B..PROPOSAL
I
5. PARTNER, SUPERVISORY
EXPERIENCE (Continued)
AND
I
AND
STAFF
QUALIFICATIONS
Concurring Review Consultant
Antonio Grau~ Sr~~ CPA~ e-mail: aSQrau@qraucpa.com
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Position
Education
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Professional
History
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Clients
Served
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Professional
Education
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Other
Qualifications
Professional
Associations
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Bachelor Degree, Business Administration, 1966, University of Miami, Certificate of
Educational Achievement from the AICPA in Governmental and Not-For-Profit Accounting
and Auditing, 1994 and 1995.
. CPA, in Florida since April 29, 1970, Certificate No. 2623
. Partner of Grau & Company, 1977-2004
. Financial officer of a public company, 1972 to 1976
· Auditor with an international accounting firm, 1966 to 1972
Mr. Grau was the head of the governmental audit department of Grau & Company, and
performs the concurring review and advises on all the governmental audits of the firm. A
partial list of audit clients served:
. Atlanta Housing Authority (2 years)
. Broward County Housing Authority (3 years)
. City of Dania Beach (1 year) (Financial/Utility Audit)
· City of Lauderdale Lakes (2 years) (Financial/Utility Audit)
. City of Lauderhill (2 years) (Financial/Utility Audit)
. City of Lauderhill General Employees Pension (2 years)
· City of Miami Springs (1 year) (Financial/Utility Audit)
. City of Oakland Park (1 year) (Financial/Utility Audit)
· City of Sweetwater Pension (10 years) (Financial/Utility Audit)
. Downtown Development Authority of the City of Miami / Community Development
Block Grants (10 years)
· Florida Community College at Jacksonville (3 years)
. Miami Beach Housing Authority (2 years)
. Palm Beach County Workforce Development District (3 years)
. South Florida Water Management District (3 years)
. Town of Hypoluxo (24 years) (Financial/Utility Audit)
. Town of Miami Lakes (1 year)
. Town of Southwest Ranches (1 year)
. Village of Biscayne Park (2 years)
· West Palm Beach Housing Authority (2 years)
Educational courses taken during the last three years.
Course Hours
Government Accounting and Auditing 87
Accounting, auditing and other --12
Total Hours .1..3.3
Mr. Grau was the review team leader for the Quality Review of the Office of Management
Audits of Miami-Dade County School Board.
· Member, American Institute of Certified Public Accountants
· Member, Florida Institute of Certified Public Accountants
. Past member, State and Local Government Committee, Florida
· Institute of Certified Public Accountants (1996-1997)
· Past member, Quality Review Acceptance Committee, Florida
· Institute of Certified Public Accountants (1991 - 1993)
. Member of BKR International Committee on Government and Non-Profit Accounting
and Auditing
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VI. PROPOSAL REQUIREMENTS
I
B.PROPOSAL
I
5. PARTNER, SUPERVISORY
EXPERIENCE (Continued)
I
AND
STAFF
QUALIFICATIONS
AND
Audit Manager - "KEY" Member
e,
~i~
....'i
. \'X j
R.. a,ent R(Jge's~ CPA~ e-mail: bro!:lers@qraucpa.com
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Position
Education
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Professional
History
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Clients
Served
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Professional
Education
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Associations
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Masters Degree, Taxation, 2001, Florida International University,
Bachelor Degree, Accounting, 1992, Florida International University
· Grau & Associates since 2006
. Grau & Company 1997 to 2005
. Other Public Experience 1995 to 1997
Brent Rogers will serve as the audit Senior/Supervisor and a designated "KEY"
Member of the team. Mr. Rogers was selected because of his extensive experience
with public sector clients. A partial list of public sector audit clients served follows:
· Christian Manor (HUD) (1 year)
. City of Dania Beach (1 year)
. City of Lauderdale Lakes (2 years)
. City of Lauderhill (2 years)
. City of North Lauderdale (3 years)
. City of Sweetwater Pension (2 years)
. Codec (HUD) (1 year)
· Delray Beach Housing Authority (1 year)
. East Central Regional Wastewater Treatment Facility (5 years)
. Ft. Pierce Housing Authority (1 year)
· Hispanic Human Resources Council (8 years)
. Mae Volen Senior Center (5 years)
. Palm Beach County Workforce Development Board (3 years)
· Southwest Florida Workforce Development Board (5 years)
. Town of Davie (2 years)
. Town of Hypoluxo (4 years)
· Various Community Development Districts within Florida (9 years)
. West Palm Beach Housing Authority (2 years)
Educational courses taken during the last three years.
Course
Government Accounting and Auditing
Accounting, auditing and other
Total Hours
Hours
69
2Z
12fi
. Member, American Institute of Certified Public Accountants
· Member, Florida Institute of Certified Public Accountants
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VI~ PROPQSAL REQUIREMENTS
B~PROPOSAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
Supervisor I Senior
TalJana MOta~ e-mail: tmora@Qraucpa.com
Position
Education
Professional
History
Clients
Served
Professional
Education
Professional
Associations
'lr; ~r~~il~d ~~~~~~~,~:~
Bachelor of Arts - Major: Accounting, Queens College of the
University of New York, January 1998
· Grau & Associates since 2006
· Senior Accountant at Grau & Company, 2004 - 2005
· Staff accountant of Grau & Company, 2001 - 2003
· Staff of local CPA firms 1999
Tatiana Mora will be the Supervisor and a designated "KEY" Member of the
team. A partial list of clients served follows:
· Various Community Development Districts (5 years)
· Delray Beach Housing Authority (1 year)
· West Palm Beach Housing Authority (1 year)
· Greater Boca Raton Park & Beach District (3 years)
· Florida Advocacy Immigrant Center (2 years)
· South Indian River Water Control District (2 years)
· Town of Hypoluxo (3 years)
· City of Pompano Beach (Joint Venture) (2 years)
· South Florida Water Management District (Joint Venture) (1 year)
· SW Florida Workforce Development Board (1 year)
· Florida Community College at Jacksonville - Internal Audit (2 years)
Educational courses taken during the last year.
Course Hours
Government Accounting and Auditing 80
Accounting, auditing and other ~
Total Hours Jill
· Member, Florida Institute of Certified Public Accountants
· Member, Florida Government Finance Officers Association
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VI~ PROPOSAL REQUIREMENTS
B~PROPQIAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
Total
Governmental Total
CPE HOURS Accounting Educational
and Auditing Hours
EXCEEDING
STANDARDS. Antonio Grau, Jr.
48 152
PARTNER, ENGAGEMENT PARTNER
CONSULTANT, Antonio Grau, Sr.
ENGAGEMENT 87 133
MANAGER CONCURRING REVIEW CONSULTANT
AND
SENIOR R. Brent Rogers 69 126
AVERAGE AUDIT MANAGER
OVER 71 HOURS
OF Tatiana Mora 80 89
GOVERNMENTAL SENIOR
CPE COURSES
OVER 3 YEARS Total 284 5JJfl
GRAU Average 71 125
VS.
Minimum Required 36 120
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.
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v,'! PI\OPOIAL REQUIREMENT$
8,,! PROPOSAL
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
TRAINING COURSES I MEMBERSHIPS
Compliance with Government Education Requirements
In order to maintain our high level of technical competence, we provide continuing
professional education programs for all partners and professional staff members, which
exceed national and state standards. All of the audit professionals of Grau &
Associates exceed the education requirements as set forth in Government
Auditing Standards, published by the Comptroller General of the United States,
and our continuing professional education programs ensure that all audit professionals
meet the requirements to participate in audits of government agencies.
Professional Staff Traininq
Partners - All of our Partners are CPA's and have in excess of 21 years of diversified
public accounting experience. They are responsible for overall engagement
performance, policy, direction and quality control. They have far exceeded minimum
CPE requirements.
Manaaers - All of our Audit Managers are CPA's who have a minimum of 8 years of
diversified public accounting experience. They have demonstrated ability to plan audit
engagements, supervise personnel and maintain frequent contact with clients. They
continually upgrade their skills through the firm's continuing education programs and
courses sponsored by the AICPA, FICPA and GFOA. They have far exceeded
minimum CPE requirements.
Seniors - All of our Senior have a minimum of 3 years of diversified public accounting
experience. They perform audits, evaluate staff, review findings and prepare audit
reports. They posses the potential for upward mobility. They have far exceeded
minimum CPE requirements.
Memberships
All of the firm's CPA's are properly licensed as CPA's and members in good standing of
both the American Institute of Certified Public Accountants and the Florida Institute of
Certified Public Accountants. In addition, certain firm professionals are members or
have been members of the following professional groups:
o FICPA Committee on State and Local Government
Q Florida Government Finance Officers Association
o Technical Resource Committee of the Government Finance Officers Association
Q Special Review Committee of the Government Finance Officers Association
o Florida Institute of CPA Non-Profit Conference Committee
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v,~ PRQPO&A~ REQUU~EMENT$
I~P.RQPQ&AL.
5. PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS AND
EXPERIENCE (Continued)
CPE SEMINARS OFFERED TO CLIENTS
Grau & Associates offers in-house continuing professional education seminars on a
regular basis and would invite Citv oersonnel to attend anv/all in-house seminars. We
have noted experts throughout the state and country come to our offices and
conduct these seminars.
In addition, members of the firm conduct in-house seminars.
6. PRIOR ENGAGEMENTS WITH THE CITY OF SUNNY ISLES BEACH
Grau had no prior engagements with the City of Sunny Isles Beach.
'~r; ~r~~iJ~d ~~~~,~~,~,~:,s.
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Vl~ PRQPQIAL, REQU'REMENT$
B~PRQPQIAL,
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES
We have included three references of engagements which we believe are similar to the
City.
Scope:
Total Hours of Last Audit:
Partner:
Date:
Client Contact:
Telephone:
CITY OF NORTH LAUDERDALE
Audit
400
Antonio Grau, Jr.
Annually since 2004
Brian Raducci
(954) 724-7056
Scope:
Total Hours of Last Audit:
Partner:
Date:
Client Contact:
Telephone:
TOWN OF HYPOLUXO
Audit
117
Antonio Grau, Jr.
Annually since 1980
Kenneth M. Schultz, Mayor
(561) 582-0155
EAST CENTRAL REGIONAL
WASTEWATER TREATMENT FACILITY
Audit
58
Antonio Grau, Jr.
Annually since 1998
Lynn Greene
(561) 822-1310
Scope:
Total Hours of Last Audit:
Partner:
Date:
Client Contact:
Telephone:
We are proud to have assisted our clients who participate in the GFOA Certificate
of Achievement for Excellence in Financial Reporting Program (CAFR) to qualify
for that 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 we have reported in the certificate
program.
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Vt~ PROPOSAL REQUlftEMENT&
II~PRQPOIAL
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES (Continued)
rn rn -
CIl CIl :0
(,) (,) ::l
'S; 'S; <l:
... Gi
CIl iij E
LISTING OF rJ) rJ) E - - .!
l:: Cl CIl :0 'l:l u
GOVERNMENTAL CLIENTS .2 ~ E ::l ::l 'l:l
m l:: <l: <l: E l::
Ui ::l ... CIl ~ a: CIl w
rn CIl Cl ...
SERVED AND RELATED EXPERIENCE CIl l:: > lL ...
l:: ... ra
:t: 0 0 += <l: ::l CIl
<l: 0 Cl i:ii :J 0 0 >
MUNICIPALITIES OR RELATED COMPONENT UNITS
City of Lauderhill ./ ./ ./ ./ 9/30
City of Lauderhill - General Employees Retirement System ./ 9/30
City of North Lauderdale ./ ./ ./ 9/30
City of North Palm Beach (Internal Audit) ./ N/A
City of Pompano Beach (Joint Venture, 40%) ./ ./ ./ ./ 9/30
City of Sweetwater ./ ./ 9/30
City of Sweetwater - Retirement Plan (Component Unit) ./ 9/30
City of West Miami ./ ./ ./ 9/30
Miami Beach Redevelopment Agency ./ ./ ./ 9/30
Town of Davie ./ ./ ./ ./ ./ 9/30
Town of Hypoluxo ./ ./ ./ ./ ./ 9/30
West Palm Beach Golf Commission (Component Unit) ./ ./ 9/30
TOTAL 1 2 11 6 6 5 3
SCHOOL DISTRICTS, COLLEGES AND RELATED ENTITIES
Broward County School District (Joint Venture)
(Assessment of Maintenance Operations) ./ N/A
Broward County School District (Joint Venture, 20%) ./ ./ ./ N/A
Florida Community College at Jacksonville (Internal Audit) ./ 6/30
Highland County School District (Internal Funds Audit) ./ 6/30
Miami-Dade County School District (Internal Audit -
Quality Review) ./ N/A
Palm Beach County School District (Assessment
of maintenance for Facility and Property
ManaQemenn (Internal Funds Audit) ./ ./ 6/30
Palm Beach County School District (Joint Venture, 20%) ./ ./ ./ 6/30
Palm Beach County Workforce Development Board
(Joint Venture, 25%) ./ 6/30
Southwest Florida Workforce Development Board ./ ./ ./ ./ 6/30
TOTAL 4 1 5 3 - 2 2
'Tr; ~r~~if~d ~~~~~~~,~,:~
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VI~ PROPQSAL REQUIREMENTS
I
B~PRQPQSAL
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES (Continued)
I
-
'ti
::l
c:(
ili E
E - - .!!!
QI 'C 'ti U
E ::l ::l 'C
r::: c:( c:( E r:::
... QI ~ W
QI c;, QI ...
> ...
... III
0 r::: ::l QI
Cl i:ii 5 u >
SPECIAL DISTRICTS
Aberdeen Community Development District ./ ./ 9/30
Amelia National Community Development District ./ ./ 9/30
Ave Maria Stewardship Communitv Development District ./ ./ 9/30
Ballantrae Community Development District ./ ./ 9/30
Bay Laurel Community Development District ./ ./ 9/30
Bavtree Community Development District ./ ./ 9/30
Beacon Lakes Community Development District ./ ./ 9/30
Beacon Tradeport Community Development District ./ ./ 9/30
Beeline Community Development District ./ 9/30
Bella Terra Community Development District ./ ./ 9/30
Belmont Lakes Community Development District ./ ./ 9/30
Bobcat Trail Community Development District ./ ./ 9/30
BOQQY Creek Community Development District ./ ./ 9/30
Bonnett Creek Community Development District ./ 9/30
Brandv Creek Community Development District ./ ./ 9/30
BriQer Community Development District ./ ./ 9/30
Briqhton Lakes Community Development District ./ ./ 9/30
Capital Region Community Development District ./ ./ 9/30
Capron Trail Community Development District ./ ./ 9/30
Cedar Pointe Community Development District ./ ./ 9/30
Central Broward Water Control District ./ ./ 9/30
Century Gardens Community Development District ./ ./ 9/30
Century Parc Community Development District ./ ./ 9/30
CFM (Coolidqe Fort Myers) Communitv Development District ./ ./ 9/30
Citv Center Community Development District ./ ./ 9/30
Citv Place Community Development District ./ ./ 9/30
Concorde Estates Community Development District ./ ./ 9/30
Connerton West Community Development District ./ ./ 9/30
Copper Oaks Community Development District ./ ./ 9/30
Country Green Community Development District ./ ./ 9/30
CovinQton Park Community Development District ./ ./ 9/30
Cutler Cay Community Development District ./ ./ 9/30
Cvpress Cove Community Development District ./ ./ 9/30
Cypress Lakes Community Development District ./ ./ 9/30
Diamond Hill Community Development District ./ ./ 9/30
Dovera Community Development District ./ ./ 9/30
Dunes Community Development District ./ ./ 9/30
East Central Reqional Wastewater Treatment Facility (Joint Venture, 50%) ./ ./ 9/30
Eastlake Oaks Community Development District ./ ./ 9/30
East Park Community Development District ./ ./ 9/30
LISTING OF
GOVERNMENTAL CLIENTS
SERVED AND RELATED EXPERIENCE
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Special Districts (Continued)
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VI~ PROPQSAL REQUIREMENTS
I
84PROPQaAL
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES (Continued)
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:c
:l
<
LISTING OF Cii -
c:
- - - .!!!
c: :c :c
Gl <3
GOVERNMENTAL CLIENTS E :l :l "C
c: < < E c:
.. Gl ~ w
SERVED AND RELATED EXPERIENCE Gl c;, Gl ..
..
> c: .. III
0 i:ii 5 :l Gl
(Continued) Cl 0 >
I I
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SPECIAL DISTRICTS (Continued)
Falcon Trace Community Develooment District ../ ../ 9/30
Fishhawk I Communitv Develooment District ../ ../ 9/30
Fishhawk 1/ Community Develooment District ../ 9/30
Fleminq Island Plantation Community Development District ../ ../ 9/30
Forest Creek Community Develooment District ../ ../ 9/30
Golden Lakes Communitv Develooment District ../ ../ 9/30
Grand Hamoton Community Development District ../ ../ 9/30
Grand Haven Community Develooment District ../ ../ ../ 9/30
Greater Boca Raton Beach and Park District ../ ../ 9/30
Greenewav Communitv Develooment District ../ ../ 9/30
Grevhawk Landina Community Develooment District ../ ../ 9/30
Hammock Bav Communitv Develooment District ../ ../ 9/30
Harbor Bav Communitv Develooment District ../ ../ 9/30
Harbour Isles Community Develooment District ../ ../ 9/30
Harbour Lakes Estates Communitv Develooment District ../ ../ 9/30
Harmonv Communitv Development District ../ ../ 9/30
Heritaqe Harbor Communitv Develooment District ../ 9/30
Heritaae Harbor South Community Development District ../ 9/30
Heritaae Isles Community Develooment District ../ ../ 9/30
Heritaqe Isles at Viera Estates Community Development District ../ ../ 9/30
Heritaae Landina Community Develooment District ../ ../ 9/30
Heritaqe Oak Park Communitv Develooment District ../ ../ 9/30
Heritaae Park Community Development District ../ ../ 9/30
Heritaae Pines Communitv Develooment District ../ ../ 9/30
Heritaae Sorinas Communitv Develooment District ../ ../ 9/30
Hiahlands Communitv Develooment District ../ ../ 9/30
Hvooluxo / Haverhill Communitv Develooment District ../ ../ 9/30
Island at Doral (NE) Communitv Development District ../ ../ 9/30
Island at Doral7SW) Community Develooment District ../ ../ 9/30
Journev's End Community Develooment District ../ ../ 9/30
Kendall Breeze Communitv Develooment District ../ ../ 9/30
Key Larqo Wastewater Treatment Plant ../ ../ 9/30
Laauna Community Develooment District ../ ../ 9/30
Lake Ashton Communitv Development District ../ ../ 9/30
Lake Powell Residential Golf Community Development District ../ 9/30
Lakes by the Bav Communitv Development District ../ ../ 9/30
Lakeside Plantation Community Develooment District ../ ../ 9/30
Lakewood Ranch Inter-District Authoritv ../ ../ 9/30
Lakewood Ranch Community Develooment District 1 ../ ../ 9/30
Lakewood Ranch Communitv Develooment District 2 ../ ../ 9/30
Lakewood Ranch Communitv Develooment District 3 ../ ../ 9/30
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Special Districts (Continued)
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VI~ PROPOSAL REQUIREMENTS
L PROPOSAL
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES (Continued)
-
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SPECIAL DISTRICTS (Continued)
Lakewood Ranch Community Deyelopment District 4 -/ -/ 9/30
Lakewood Ranch Community Development District 5 -/ -/ 9/30
Lakewood Ranch Community Development District 6 -/ -/ 9/30
Lexinqton Community Development District -/ -/ 9/30
LexinQton Oaks Community Development District -/ -/ 9/30
Live Oaks 1 Community Development District -/ -/ 9/30
Lonqleaf Community Development District -/ -/ 9/30
Lucaya Community Development District -/ -/ 9/30
Maple RidQe Community Development District -/ -/ 9/30
Marshall Creek Community Development District -/ -/ 9/30
Meadow Pines Community Development District -/ -/ 9/30
Meadowpointe III Community Development District -/ -/ 9/30
Meadowpointe IV Community Development District -/ -/ 9/30
Meadow Woods Community Development District -/ -/ 9/30
Mediterra North Community Development District -/ 9/30
Mediterra South Community Development District -/ 9/30
Middle VillaQe Community Development District -/ 9/30
Miromar Lakes Community Development District -/ 9/30
Myrtle Creek Community Development District -/ -/ 9/30
Naples Heritage Community Development District -/ 9/30
Northwood Community Development District -/ -/ 9/30
Oak Creek Community Development District -/ -/ 9/30
Oakridqe Community Development District -/ -/ 9/30
Oakstead Community Development District -/ -/ 9/30
Palma Sola Community Development District -/ 9/30
Pal Mar Water Control District -/ -/ 9/30
Palm Bay Community Development District -/ 9/30
Panther Trace 1 Community Development District -/ -/ 9/30
Parklands Lee Community Development District -/ -/ 9/30
Parklands West Community Development District -/ 9/30
Parkway Center Community Development District -/ -/ 9/30
Pelican Marsh Community Development District -/ 9/30
Pier Park Community Development District -/ -/ 9/30
Pine Island Community Development District -/ -/ 9/30
Pinellas Park Water ManaQement District -/ -/ 9/30
Pinetree Water Control District -/ -/ 9/30
Piney-Z Community Development District -/ -/ 9/30
Poinciana Community Development District -/ -/ 9/30
Portofino Isles Community Deyelopment District -/ 9/30
Portofino Shores Community Development District -/ 9/30
Preserve at Wilderness Lake Community Development District -/ -/ 9/30
Quantum Community Development District -/ -/ 9/30
LISTING OF
GOVERNMENTAL CLIENTS
SERVED AND RELATED EXPERIENCE
(Continued)
Special Districts (Continued)
'lr; ~r~~if~d ~~~~~~~,~:~
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VI. PROPOSAL REQUIREMENTS
L PROPOSAL
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES (Continued)
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SPECIAL DISTRICTS (Continued)
ReminQton Community Development District ./ 9/30
Renaissance Community Development District ./ 9/20
Reunion East Communitv Development District ./ ./ 9/30
Reunion West Community Development District ./ ./ 9/30
River Bend Community Development District ./ ./ 9/30
Rivercrest Communitv Development District ./ ./ 9/30
River Place Community Development District ./ ./ 9/30
Riverwood Communitv Development District ./ ./ 9/30
Sampson Creek Community Development District ./ 9/30
Seven Oaks I Community Development District ./ ./ 9/30
Seven Oaks /I Communitv Development District ./ ./ 9/30
Somerset Community Development District ./ ./ 9/30
South Bav Community Development District ./ ./ 9/30
South Dade Venture Communitv Development District ./ ./ 9/30
South Fork Communitv Development District ./ ./ 9/30
South Fork East Community Development District ./ ./ 9/30
South Indian River Water Control District ./ ./ 9/30
South Kendall Communitv Development District ./ ./ 9/30
South Villaae Community Development District ./ 9/30
Split Pine Community Development District ./ ./ 9/30
St. John's Forest Communitv Development District ./ ./ 9/30
Sterlina Hill Community Development District ./ ./ 9/30
Stevens Plantation Community Development District ./ ./ 9/30
Stonevbrook West Community Development District ./ ./ 9/30
Tampa Palms Community Development District ./ ./ 9/30
Tampa Post Community Development District ./ ./ 9/30
Tara Community Development District ./ ./ 9/30
The CrossinQ at Fleminq Island Community Development District ./ ./ 9/30
The Groves Community Development District ./ ./ 9/30
The Harbouraae at Braden River Community Development District ./ ./ 9/30
Tolomato Community Development District ./ ./ 9/30
Tomoka Community Development District ./ ./ 9/30
Town Center @ Palm Coast Community Development District ./ ./ 9/30
Turnbull Creek Community Development District ./ ./ 9/30
Turtle Run Community Development District ./ ./ 9/30
Tuscanv Reserve Community Development District ./ ./ 9/30
University Place Communitv Development District ./ ./ 9/30
University Square Community Development District ./ 9/30
Verandah West Communitv Development District ./ 9/30
Venetian Community Development District ./ ./ 9/30
Verona Walk Communitv Development District ./ ./ 9/30
Special Districts (Continued)
'rr; ~r~~if~d ~;~~~~~'!:,:
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VI.. PROPOSAL REQUIREMENTS
L PROPOSAL
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES (Continued)
-
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SPECIAL DISTRICTS (Continued)
VillaQe Walk of Bonita Sorinas Communitv Develooment District ./ ./ 9/30
Villaqes at Bloominadale Communitv Development District ./ ./ 9/30
Villaaes of Westoort Communitv Develooment District ./ ./ 9/30
Visari Communitv Develooment District ./ ./ 9/30
Vista Lakes Communitv DeveloDment District ./ ./ 9/30
Vizcava Communitv Develooment District ./ ./ 9/30
Walnut Creek Communitv Develooment District ./ ./ 9/30
Waterchase Communitv DeveloDment District ./ ./ 9/30
Waterlefe Communitv Develooment District ./ ./ 9/30
Westchester Communitv Develooment District ./ 9/30
West Lake Communitv Develooment District ./ ./ 9/30
West Lakeland Water Control District ./ 9/30
West Villaqes Imorovement District ./ ./ 9/30
Westridae Communitv Develooment District ./ ./ 9/30
Winston Trails Communitv Develooment District ./ ./ 9/30
Woodlands Communitv Develooment District ./ ./ 9/30
World Commerce Communitv Development District ./ ./ 9/30
Wvndam Park Communitv Develooment District ./ ./ 9/30
TOTAL 182 - 3157
LISTING OF
GOVERNMENTAL CLIENTS
SERVED AND RELATED EXPERIENCE
(Continued)
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VI. PROPOSAL REQUIREMENTS
B.PROPOSAL
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES (Continued)
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PUBLIC HOUSING AUTHORITIES
Atlanta Housina Authoritv (Joint Venture/BKR Metcalf) ,/ ,/ ,/ 6/30
Boca Raton Housina Authoritv ,/ ,/ ,/ 9/30
Delrav Beach Housina Authoritv ,/ ,/ ,/ 3/31
Fort Pierce Housinn Authoritv ,/ ,/ ,/ 6/30
Orlando Housina Authoritv ,/ ,/ ,/ 3/31
Tampa Housina Authoritv ,/ ,/ ,/ 3/31
West Palm Beach Housina Authoritv ,/ ,/ ,/ 3/31
TOTAL 7 - 7 7 - - -
STATE OF FLORIDA AGENCIES AND COMPONENT UNITS
Florida Transit Association Finance Corporation ,/ ,/ ,/ 6/30
Miarant Health Services of Palm Beach Countv ,/ ,/ N/A
South Florida Water Manaaement District ,/ 9/30
South Florida Water Manaaement District (Joint Venture 10"l.J ,/ ,/ 9/30
South Florida Water Management District CERP Program
Manaaement Services (Joint Venture) ,/ N/A
State of Florida Department of Management Services
(Construction \ ,/ N/A
State of Florida Deoartment of Revenue ,/ N/A
State of Florida Denartment of Transportation (VariouS) ,/ ,/ N/A
TOTAL 2 1 5 2 - 1 2
COUNTIES
LISTING OF
GOVERNMENTAL CLIENTS
SERVED AND RELATED EXPERIENCE
,/
,/ N/A
N/A
N/A
,/
,/
1 1 1
TOTAL
1
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VI.. PROPOSAL REQUIREMENTS
B.. PROPOSAL
7. SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES (Continued)
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NON-PROFIT CLIENTS .. .. c:(
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Aid to Victims of Domestic Abuse, Inc.
Broward County Human Rights Board/Division (Joint Venture, 30%)
Mae Volen Senior Center
National Board for Registration of Registrars
National Cancer Registration Board
Urban League of Palm Beach County
TOTAL
SCHOOLS OR RELATED PUBLIC SERVICES
Broward Education Foundation
Hispanic Human Resources Council
North Lauderdale Academy High School
TOTAL
Christian Manor
Northwood Development Corporation
TOTAL
'r'~r~~'J~d ~;~~,~~~'~:~
./ ./ ./ ./ ./ 6/30
./ ./ N/A
./ ./ ./ ./ ./ ./ 6/30
./ ./ 3/31
./ ./ 6/30
./ ./ 6/30
2 4 1 3 3 4 2
./ ./ ./ ./ ./ 6/30
./ ./ ./ ./ ./ ./ ./ 9/30
./ ./ ./ 6/30
2 2 1 3 2 2 3
./ ./ ./ ./ ./ ./ 12/31
./ ./ ./ ./ ./ ./ 9/30
2 2 2 2 2 2
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VI" PROPOSAL REQUIREMENTS
B"PROPOSAL
8. SPECIFIC AUDIT APPROACH
SCOPE I WORK PRODUCTS I RESULTS
Grau's Understanding of Work Product / Scope of Services:
We recognize the City is an important entity and its responsibilities create a challenging
and dynamic organization. We are confident our firm is eminently qualified to meet the
challenges of this engagement and deliver quality audit services to the City. City of
Sunny Isles Beach would be a valued client of our firm and we pledge to commit
all firm resources to provide the level and quality of services (as described
below) which both fit the City's needs and exceed the City's expectations. Grau
& Associates fully understands the scope of professional services and work products
requested in this RFP. Our audit will follow the Generally Accepted Auditing Standards
of the AICPA, Government Auditing Standards, issued by the Comptroller General of
the United States, and the Rules of the Auditor General of the State of Florida and any
other applicable Federal, State or local regulations. We will deliver our reports in
accordance with your requirements.
a. Proposed segmentation of the engagement
Our approach to the audit engagement is a risk-based approach which integrates
the best of traditional auditing techniques and a total systems concept to enable the
team to conduct a more efficient and effective audit. The audit will be conducted in
three phases, which are as follows:
Phase I - Preliminarv PlanninQ
A thorough understanding of your organization, service objectives and operating
environment is essential for the development of an audit plan and for an efficient,
cost-effective audit. During this phase, we will meet with appropriate personnel to
obtain and document our understanding of your operations and service objectives
and, at the same time, give you the opportunity to express your expectations with
respect to the services that we will provide. Our work effort will be coordinated so
that there will be minimal disruption to your staff.
During this phase we will perform the following activities:
· Review the regulatory, statutory and compliance requirements within which the
City operates. This will include a review of applicable federal and state statutes,
resolutions, bond covenants, contracts, and other agreements.
· Read minutes of meetings of the City Council and various committees.
· Obtain the prior year trial balance and import into our paperless audit system.
· Review major sources of information such as budgets, organization charts,
procedures, manuals, financial systems, and management information systems.
'T'~r~~if~d ~~~~~~?,!:~
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VI. PROPOSAL REQUIREMENTS
B.PROPOSAL
8. SPECIFIC AUDIT APPROACH (Continued)
a. Proposed segmentation of the engagement (Continued)
Phase I - Preliminarv PlanninQ (Continued)
· Obtain an understanding of the City's fraud detection and prevention systems.
· Obtain and document an understanding of the City's internal control. Consider
the methods that the City uses to process accounting information which influence
the design of the internal control. This understanding includes knowledge about
the design of relevant policies, procedures, and records, and whether they have
been placed in operation by the City.
· Assess risk and determine what controls we are to rely upon and what tests we
are going to perform. Perform test of controls.
· Develop audit programs to incorporate the consideration of financial statement
assertions, specific audit objectives, and appropriate audit procedures to achieve
the specified objectives.
· Discuss and resolve any accounting, auditing and reporting matters which have
been identified.
Phase II - Execution of Audit Plan
The audit team will complete a major portion of transaction testing and audit
requirements during this phase. The procedures performed during this period will
enable us to identify any 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:
· Obtain trial balances for the fiscal year under audit and import into our paperless
audit system.
· Apply analytical procedures to further assist in the determination of the nature,
timing, and extent of auditing procedures used to obtain evidential matter for
specific account balances or classes of transactions.
· Perform tests of account balances and transactions through sampling, vouching,
confirmation and other analytical procedures.
· Perform tests of compliance with applicable laws, regulations, contracts, and
agreements.
· Review test results and preliminary conclusions.
For test of controls and tests of transactions, our professionals will utilize sampling
methodologies designed to ensure effective audit procedures are applied in the
most efficient manner. 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.
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VI~ PROPOSAL REQUIREMENTS
8~PRQPQSAL
8. SPECIFIC AUDIT APPROACH (Continued)
a. Proposed segmentation of the engagement (Continued)
Phase II - Execution of Audit Plan (Continued)
We are actively committed to using computer-based audit techniques. Our
knowledge of information systems (IS) and the use of personal computers yield
significant savings in the time required to complete an audit. For data extraction,
including sample selection, we use a software called Audit Command Language
(ACL) for Windows.
Phase III - Completion and Deliverv
In this phase of the audit, we will complete the tasks related to the closing of year-
end balances and financial reporting. This will include final testing in the areas of
compliance, balance sheet accounts, revenue and expenditures, among others. All
reports will be reviewed with management before issuance, and the partners will be
available to meet with the City to discuss our report and address any questions they
may have. Tasks to be performed in Phase III include, but are not limited to the
following:
· Perform final analytical procedures including comparison of adjusted expenditure
amounts to the budget.
· Review minutes for subsequent events.
· Meeting with Management to discuss preparation of draft financial statements,
Management's Discussion and Analysis, subsequent events, and any potential
findings or recommendations.
b. Level of staff and number of hours to be assigned to each proposed
segment of the engagement
To achieve the proper balance between the ability to recognize problems and the
cost in performing the services, 80% of the engagement will be performed by
our Management Team. We emphasize utilizina our hiahest exDerienced
Dersonne/ because of their exDerience. trainina and education and corresDondina
abilities to recoanize Drab/ems and deal with them exDedientlv.
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VI~ PROPOSAL REQUIREMENTS
B~PRQPOSAL
8. SPECIFIC AUDIT APPROACH (Continued)
c. Sample size and the extent to which statistical sampling is to be used
in the engagement
Our professionals will utilize sampling methodologies designed to ensure effective
audit procedures are applied in the most efficient manner.
Samplinq Techniques
We will utilize representative audit sampling procedures with respect to tests of
transactions and tests of controls, where a sample of documentation is to be tested
as the principal evidence of a control. During tests of controls, the tests will
generally consist of a combination of corroborative inquiry and either observation,
examination of documents or re-performance. We will use attribute sampling to test
documentary evidence as documentation will be the prime corroborative evidence
of identified controls.
Statistical and Non-statistical Samplinq
Tests of transactions and tests of controls can be performed using either statistically
or non-statistically based techniques. Statistical approaches will be based on our
calculation of risk factors. If a non-statistical approach is deemed appropriate, we
will design our procedures to obtain levels of assurance that we judge to be
equivalent to those required when using statistically based techniques.
Sample Sizes
For tests of controls, sample size will be based on the planned or supported
assessed level of control risk and the number of planned or actual deviations
expected. For transactions testwork, sample size will be a function of population,
materiality, and risk factors.
d. Extent of use of IMS software in the engagement
We are actively committed to using computer-based audit techniques. Our
knowledge of information systems (IS) and the use of personal computers yield
significant savings in the time required to complete an audit.
Today's marketplace provides firms, large and small, national and local, with
sophisticated computer-aided audit tools necessary to perform data analysis and
report generation. Software products, such as Audit Command Language (ACL) for
Windows, are used to analyze data and produce reports.
A client's IS environment influences the nature, timing, and extent of planned
auditing procedures. Because most of our clients utilize computerized accounting
systems, our professional team is experienced with various IS systems. As
computers have become more integral to the financial management system, we
have met the challenge by incorporating new audit techniques into the audit
process. Staff members are trained on new software and are skilled in a wide
variety of computerized applications.
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VI, PROPOSAL REQUIREMENTS
B,PROPQSAL
8. SPECIFIC AUDIT APPROACH (Continued)
d. Extent of use of IMS software in the engagement (Continued)
Each team member possesses their own laptop computer with pertinent audit-
related software. We will utilize prosystem Fx Engagement, ACL for Windows,
database programs and spreadsheet applications for auditing purposes.
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.
Utilizing this expertise we will be able to,
· evaluate IS general controls within the computer environment;
· document critical transaction processing systems;
· identify key processes and controls within these transaction processing systems;
· evaluate the effectiveness of identified controls;
· advise the audit team on results of the evaluation and effect on planned audit
procedures;
· design, develop and execute computer-assisted audit techniques using computer
audit software packages; and
· assess the internal controls
e. Type and extent of analytical procedures to be used in the engagement
Statement of Auditing Standards on Analytical Procedures provides guidance on
the use and extent of analytical procedures in all audits. Analytical procedures are
required in the planning and overall review stages of the audit, and are used in the
following areas:
Audit Planning
Analytical procedures can provide great insight in planning an audit. These
analyses can enhance our understanding of City's transactions and events that may
have occurred during the year under audit. We compare the current balances to
the prior year and to the current budget. Isolating significant differences can identify
areas that may require additional attention during the field work. For example, such
a review could identify a new revenue source for which we would need to obtain
documentation supporting the authority for collecting such monies.
Substantive Tests
Analytical procedures can be used as effective substantive tests in certain
circumstances, for example, testing certain payroll related expenditures, such as
payroll taxes, which are a specific percent of wages.
Overall Review
Analytical procedures used at the conclusion of the audit are designed to assess
the conclusions reached and evaluate the overall financial statement presentation.
'lr; ~r~'~;f~d ~~~~~~,~,!:~
38
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Vl~ PRQPQIAL REQUI~EaMENT$
g~PRQPQIAL,
8. SPECIFIC AUDIT APPROACH (Continued)
f. Approach to be taken to gain and document an understanding of the
City of Sunny Isles Beach internal control structure
The internal control segment is the foundation for the entire audit and involves an
extensive understanding and evaluation of City operating and management
information systems and all related internal controls. The results of this evaluation
will influence the nature, timing and extent of our substantive audit procedures.
This approach ensures that we achieve maximum efficiency and provides valuable
feedback to management regarding the effectiveness of controls being relied upon
throughout the year.
A thorough understanding of the internal control structure of an organization is
critical in planning our audit procedures and providing useful comments and
recommendations to City. Grau utilizes a standardized control overview document
which assists us in identifying key elements within internal control, such as the
entity's risk assessment process, the control environment, information and
communication systems, and general monitoring and control activities.
Our evaluation of internal control includes considering the individual components
noted above and then considering the effectiveness of internal control as a whole.
We will obtain our understanding of each of the elements through the following
procedures:
· Meeting with City personnel to discuss operations; and
· Reviewing internal assessment of internal control
Once we have obtained an understanding of the design of relevant policies and
procedures, we will determine whether such procedures have been placed in
operation and assess control risk. This begins by holding interviews with data
processing and accounting personnel and evaluating your internal system and
accounting documentation. We will then prepare documentation of the major
systems. To the extent it is available we will also use internal control
documentation currently available. This review is organized into major accounting
cycles.
We have found through our experience that there are two primary methods to test
controls.
· Documented controls - Tested by reviewing a sample of transactions for
evidence that the control was being performed.
· Undocumented controls - Tested through inquiry and observation procedures
with appropriate department personnel.
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VI. PROPOSAL REQUIREMENTS
B.PROPQSAL
8. SPECIFIC AUDIT APPROACH (Continued)
g. Approach to be taken in determining laws and regulations that will be
subject to audit test work
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 in
the government environment.
Identifying applicable laws and regulations is fundamental to fulfilling the
responsibility of understanding their effects. We will obtain this knowledge through
the following sources.
Q Discussion of compliance requirements with City officials, including legal
counsel.
o Identification of compliance matters in statutes, financial ordinances, City
policies, contracts, grants and debt agreements.
o Review of City Council meeting minutes.
Q 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.
o Our existing knowledge of federal and state laws.
h. Approach to be taken in drawing audit samples for purposes of tests of
compliance
Tests of compliance with laws and regulations are included with the tests of
transactions and controls, when practical. Additional samples are sometimes
necessary to test specific laws and regulations. Sample sizes for compliance
testing are determined based on the number of transactions and the significance of
the requirement.
'1' ~r?'~i/~d ~;~~~~'~'~:,~
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VI~ PROPOSAL REQUIREMENTS
B~PROPOSAL
8. SPECIFIC AUDIT APPROACH (Continued)
i. Assistance to be provided in meeting the requirements of the
"Certificate of Excellence in Financial Reporting"
We are proud to have assisted our clients who participate in the GFOA Certificate of
Achievement for Excellence in Financial Reporting Program (CAFR) to qualify for
that 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 we have reported in the certificate
program.
j. Process to produce a meaningful "management letter." Include three
recent "management letters" developed in connection with local
government audits
You should expect more from your accounting firm than a signature in your annual
financial report. Our concept of truly responsive professional service emphasizes
taking an active interest in the issues of concern to our clients and serving as an
effective resource in dealing with those issues. In following this approach, we not
only audit financial information with hindsight but also consider the foresight you
apply in managing the operations of the City.
Application of this approach in developing our management letter is particularly
important given the increasing financial pressures and public scrutiny facing today's
public officials. We will prepare the management letter at the completion of our final
procedures.
In preparing this management letter, we will initially review any draft comments or
recommendations at the level within the City's government where direct
management responsibility for the activity under question rests. Only after the initial
communication, will we discuss pertinent issues with higher-level officials.
In addition, we will inform the City on each of the following:
· The auditor's responsibility under generally accepted auditing standards;
· Significant accounting policies;
· Management judgments and accounting estimates;
· Significant audit adjustments;
· Other information in documents containing audited financial statements;
· Disagreements with management;
· Management consultation with other accountants;
· Major issues discussed with management prior to retention; and
· Difficulties encountered in performing the audit.
Any criticism of operations will be constructive, and whenever recommendations
have been already identified by internal staff, the letter will so state. Our findings
will contain a statement of condition describing the situation and the area that needs
strengthening, what should be corrected and why. Our suggestions will withstand
the basic tests of corrective action:
'rr;~r~'~if~d ~;~~~~,~,~:,s.
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VI. PROPOSAL REQUIREMENTS
B.PROPOSAL
8. SPECIFIC AUDIT APPROACH (Continued)
j. Process to produce a meaningful "management letter." Include three
recent "management letters" developed in connection with local
government audits (Continued)
· The recommendation must be cost effective;
· The recommendations are to be the simplest to effectuate in order to correct a
problem;
· The recommendation must go to the heart of the problem and not just correct
symptomatic matter; and
· The corrective action must take into account why the deficiency occurred.
To assure full agreement with facts and circumstances, we will fully discuss
each item with the appropriate City Personnel prior to the final exit
conference. This policy means there will be no "surprises" in the
management letter and fosters a professional, cooperative atmosphere.
We wish to assist you in identifying and solving problems before they become
critical. To this end, while our management letters will, of course, communicate
reportable conditions or other instances of non-compliance, we will also go beyond
simply identifying any noted weaknesses. Rather, we will also recommend
suggestions as appropriate for improving operational efficiency, including increasing
revenues, decreasing costs, improving management information effectiveness,
protecting assets, etc.
Our personnel's diverse experience, and their independent and objective views,
ensures valuable and meaningful comments, observations, and conclusions as
presented in our management letters. We provide positive, solution-oriented
recommendations for areas such as financial investing, data and payroll processing,
purchasing, budgeting, pension and risk management, and general accounting
accuracy.
INVOLVED
THROUGHOUT
THE ENTIRE
YEAR
ATNO
EXTRA COST
Communications
We emphasize a continuous, year-round dialogue
between the City and our management team. We will
schedule periodic progress meetings in addition to the
entrance, interim and exit conference. During these
meetings, City personnel may inform us of their
concerns, and we can draw upon our extensive
experience with local government operations to offer the
appropriate advice and counsel. We believe this
continuous, open communication is critical to serving
your needs.
(See Appendix F for copies of three recent "management letters" developed in
connection with local government audits.)
'Tr;~r~~iJ~d ~~~~~~,~,!:~
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VI. PROPOSAL REQUIREMENTS
B.PROPOSAL
8. SPECIFIC AUDIT APPROACH (Continued)
k. Internal quality control procedures and external quality control review
The firm participates in an external quality review program requiring an on-site
independent examination of our accounting and auditing practice. Grau &
Company has consistently received an unqualified opinion on the quality of our
audit practice. During our firm's last external quality control review, seven audits
were reviewed, including six government audits. A copy of the report on the firm's
most recent quality review is on page 9.
In addition to scheduled Peer Reviews, our firm continually monitors performance to
ensure the highest quality of services. Under the supervision of two audit partners,
an audit manager is responsible for monitoring quality control of all appropriate
engagements.
9. IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT PROBLEMS
We are aware of the uniqueness of the City and will anticipate any issues by
addressing them at their early stages.
We do not anticipate any potential audit problems. We want to help you solve
problems before they become critical. This is why we will be involved throughout the
entire year, at no extra cost, providing assistance in current and new evolving issues.
e. NOT.TQ.EXCEED DOLLAR COST BID
(See Appendix: A)
'Tr;~r~~if~d ~~~~~~?~:~
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CONSULTING I MANAGEMENT ADVISORY SERVICES
Grau also provides a broad range of other management consulting services. Our expertise
has been consistently utilized by Governmental and Non-Profit entities throughout South
Florida. Examples of engagements performed are as follows:
~ Evaluation of computer lIT systems
Q Evaluation of facilities and property
management
Q Accounting systems
Q Development of budgets
~ Organizational structures
Q Cost control
<) Financing alternatives
~ Fixed asset records
<) Cost reimbursement
o Indirect cost allocation
o Bond offering
<) Inventory systems
o Construction cost systems
o Business valuations
o Purchasing alternatives
o Grant administration and compliance
o Encumbrance accounting systems
AUDITS OF LEASE AGREEMENTS AND
FRANCHISE FEE AGREEMENTS
During the last five years, we have been involved in performing audits of lease agreements
and franchise fee agreements for the following entities:
Q Martin County - Parks and Recreation
Q Town of Hypoluxo - Franchise Fees
RETIREMENT PLANS
Examples of retirement plans of government entities audited by the firm:
o City of Lauderhill General Employees Retirement Plan
Q City of Sweetwater Police Officers Defined Benefit Retirement Plan
Q Pinetree Water Control District Defined Contribution Retirement Plan
Q Town of Hypoluxo Defined Contribution Retirement Plan
o Town of Davie General Employees Retirement Plan
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~:~[3INJ~m D.[~I[?@~~1ffi@[~],
(Continued)
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ARBITRAGE
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The federal government has imposed complex rules to restrict the use of tax-exempt
financing. Their principal purpose is to eliminate any significant arbitrage incentives in a tax-
exempt issue. We have determined the applicability of these requirements and performed
the rebate calculations for more than 100 bond issues.
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LISTING OF GOVERNMENTAL CLIENTS
GRAU PROVIDES ARBITRAGE SERVICES FOR:
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· Bartram Springs Community Development District
· Beacon Lakes Community Development District
· Beacon Tradeport Community Development District
· Bobcat Trail Community Development District
· Brandy Creek Community Development District
· Briger Community Development District
· Brighton Lakes Community Development District
· Capital Region Community Development District
· Cedar Pointe Community Development District
· Championsgate Community Development District
· City Place Community Development District
· Cory Lakes Community Development District
· Country Greens Community Development District
· Double Branch Community Development District
· Dunes Community Development District
· East Homestead Community Development District
· East Park Community Development District
· Falcon Trace Community Development District
· Fleming Island Plantation Comm. Dev. District
· Grand Haven Community Development District
· Griffin Lakes Community Development District
· Habitat Community Development District
· Hamal Community Development District
· Harbour Lakes Estates Comm. Development District
· Harmony Community Development District
· Heritage Palms Community Development District
· Heritage Pines Community Development District
· Heritage Springs Community Development District
· Huntington Community Development District
· Islands of Dorallll Community Development District
· Julington Creek Plantation Comm. Dev. District
· Laguna Lakes Community Development District
· Lake Ashton Community Development District
· Lakeside Plantation Comm. Development District
· Lakewood Ranch 1 Community Development District
· Lakewood Ranch 2 Community Development District
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· Lakewood Ranch 3 Community Development District
· Lakewood Ranch 4 Community Development District
· Lakewood Ranch 5 Community Development District
· Lakewood Ranch 6 Community Development District
· Live Oak Community Development District
· Marshall Creek Community Development District
· Monterra Community Development District
· Narcossee Community Development District
· Old Palm Community Development District
· Overoaks Community Development District
· Parkway Center Community Development District
· Pine Air Lakes Community Development District
· Pine Island Community Development District
· Portofino Isles Community Development District
· Portofino Shores Community Development District
· Reunion East Community Development District
· Reunion West Community Development District
· River Place on the St. Lucie Community Dev. District
· Sampson Creek Community Development District
· South Dade Venture Community Development District
· South Village Community Development District
· Spicewood Community Development District
· Stoneybrook West Community Development District
· The Crossings at Fleming Island Comm. Dev. District
· Turnbull Creek Community Development District
· University Place Community Development District
· Urban Orlando Community Development District
· Vasari Community Development District
· Villages of Westport Comm. Development District
· Villasol Community Development District
· Vista Lakes Community Development District
· Vizcaya Community Development District
· Walnut Creek Community Development District
· Waterchase Community Development District
· Westchester Community Development District #1
45
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@@~@!illJ@Q@~
GRAU IS THE "RIGHT' CHOICE
FOR THE
CITY OF SUNNY ISLES BEACH
GRAU PLEDGES THE FOllOWING GUARANTEES:
We will:
. Provide a qualified and experienced audit team possessing knowledge of the
operation and administration of the City's compliance and legal requirements,
and accounting and reporting for operations pursuant to auditing standards
and legal requirements
.. Demonstrate our commitment to quality client service through:
· ease of accessibility
· prompt response to questions, comments, or requests
· insight and suggestions regarding internal controls, management, and
operation, as proper, for both financial and compliance considerations
. Provide value and services above and beyond the traditional auditor's
"product" - we will "go the extra mile"
. Coordinate with the City's personnel, to ensure minimum disruption and
maximum contribution of City staff
. Develop and maintain open lines of communication with the City to help
expedite the audit process and avoid awkward end-of-engagement "surprises"
'lr;c:r~~if~d ~~~~~~~~:~
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@@~@[bQD@O@){fJ
(Continued)
The partner and staff of Grau & Associates 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 exceed those expectations.
'rr;~r~~if~d ~:~~~~~,!~~
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iiJ;}J!]J@IiXiJU%! d]
NOT- TO-EXCEED DOLLAR COST BID
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DOLLAR COST PROPOSAL
PROPOSAL TO PROVIDE
PROFESSIONAL AUDIT SERVICES
FOR THE
CITY OF SUNNY ISLES BEACH
OF SUN
TO AUDIT FINANCIAL STATEMENTS FOR THREE YEARS, WITH THE
INITIAL FISCAL YEAR ENDING SEPTEMBER 30, 2007.
THE CITY WILL CONSIDER AN OPTION OF AUDITING THE FINANCIAL
STATEMENTS AN ADDITIONAL TWO FISCAL YEARS,
FOR A TOTAL OF FIVE AUDITS.
RFP #07-04-01 PROFESSIONAL AUDIT SERVICES
PROPOSAL DUE: MAY 4, 2007 BY 10:00 AM
'r'~r~~;f~d ~~~:~?,~:~
2700 North Military Trail, Suite 350, Boca Raton, FL 33431
Telephone: (561) 994-9299, Fax: (561) 994-5823, Watts: (800) 299-4728
Contact Person: Antonio Grau, Jr., CPA
tonv@qraucpa.com
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'r'Cjr':e~if~d ~~~~:~~!~~
2700 North Military Trail, Suite 350
Boca Raton, Florida 33431
(561) 994-9299' (800) 299-4728
Fax (561) 994-5823
www.qraucpa.com
May 2, 2007
Office of the City Clerk
City of Sunny Isles Beach
18070 Collins Avenue
Sunny Isles Beach, Florida 33160
To Whom It May Concern:
Grau & Associates (Grau) is presenting our cost proposal to audit the City of Sunny Isles
Beach's financial statements for three years, with the initial fiscal year ending September 30,
2007. The city will consider an option of auditing the financial statements an additional two
fiscal years, for a total of five audits.
I certify that Antonio Grau, Jr. is entitled to represent Grau & Associates, is empowered to
submit a bid and is authorized to sign a contract with the City.
The total All-Inclusive Maximum price for the year ending September, 30, 2007 is $31,700.
Very truly yours,
Grau & Associates
)~ J
o--r k ------
Antonio J. Grau
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APPENDIX F
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SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE FY 2007 FINANCIAL STATEMENTS
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Partners
Standard
Hourly
Hours Rates Total
30 $250 $ 7,500
60 170 10,200
80 125 10,000
40 100 4,000
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Managers
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Supervisory
staff
Staff
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Other (specify):
Subtotal
210
$31,700
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Total for services
described in Section
II of the RFP
(Detail on subsequent
pages)
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Out-of-pocket expenses:
Meals and lodging
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Transportation
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Other (specify):
Total not-to-exceed price for FY 2007 audit
$31,700
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Note: the rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross
deduction from the total all-inclusive maximum price.
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The fee for the Single Audit would be negotiated on an annual basis.
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4/23/2007
City of Sunny Isles Beach: Request for Proposal- Audit Services
3]
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APPENDIX F
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SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE FY 2008 FINANCIAL STATEMENTS
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Supervisory
staff
Standard
Hourly
Hours Rates Total
30 $250 $ 7,500
60 175 10,500
80 130 10,400
40 110 4,400
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Partners
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Managers
Staff
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Other (specify):
Subtotal
210
$32,800
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Total for services
described in Section
II of the RFP
(Detail on subsequent
pages)
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Out-of-pocket expenses:
Meals and lodging
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Transportation
Other (specify):
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Total not-to-exceed price for FY 2008 audit
$32,800
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Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross
deduction from the total all-inclusive maximum price.
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The fee for the Single Audit would be negotiated on an annual basis.
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4/23/2007
City of Sunny Isles Beach: Request for Proposal - Audit Services
32
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Staff
I Other (specify):
Subtotal
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Appendix F
SCHEDULE OF PROFESSIONAL FEES AND EXPENSES
FOR THE AUDIT OF THE FY 2009 FINANCIAL STATEMENTS
Partners
Standard
Hourly
Hours Ra tes Total
30 $250 $ 7,500
60 180 10,800
80 135 10,800
40 115 4,600
Managers
Supervisory
staff
210
$33,700
Total for services
described in Section
II of the RFP
(Detail on subsequent
pages)
Out-of-pocket expenses:
Meals and lodging
Transportation
Other (specify):
Total not-to-exceed price for FY 2009 audit
$33,700
Note: The rate quoted should not be presented as a general percentage of the standard hourly rate or as a gross deduction
from the total all-inclusive maximum price.
The cost of audits for subsequent years of services beyond 2009 will be negotiated each year or as needed.
The fee for the Single Audit would be negotiated on an annual basis.
4/23/2007
City of Sunny Isles Beach: Request for Proposal - Audit Services
33
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tiJV}J!JJ@JJ[J@fl:! /l)
EVIDENCE OF LICENSES
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.2170089
STATE OF FLORIDA
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
BOARD OF ACCOUNTANCY SEQ#r,osu9o100008
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_ 'T~'i I .'
,99/01/2005 050162093
The ONE OWNER FIRM
Named below IS LICENSED
Under the nrovisions of Chapter
Expiration.date: DEC 31, 2007
LICENSE NBR
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---J
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473 FS.
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ANTONIO J GRAU CPA PA
2700 N. MILITARY TRAIL
~.'ITE 350
BlJCA RATON FL 3343]
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JEB BUSH
GOVERNOR
DISI'Ll'IY AS PEOUIRED 13Y LAW
SIMONE MARS'I'ILLER
SECRETARY
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M,' '2 2 7 g 0 9 r
STATE OF FLORIDA
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION
BOARD OF ACCOUNTANCY SEQ#LOS101800&/.
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.' : . LICENSE NBR
10 18 2005 050322395 AC0015330
The CERTIFIED PUBLIC ACCOUNTANT
Named below IS LICENSED
Under the provisions of Chapter 473 FS.
Expir.ation date: DEC 31, 2007
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GRAU, ANTONIO JOSE
2298 NW 39TH DR
BOCA' RATON
Fl, 33431
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JEB BUSH
GOVERNOR
DISPLAY AS REQUIRED BY LAW
SIMONE MARSTILLER
SECRETARY
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Ac#22 9 2 063
DEPARTMENT
STATE OF FLORIDA
F BUSINESS-AND P OFESSIONAL
OARD-OF~ACCO~ANCY
X
REGULATION..... :L
SE6l#L051022 09!L-l
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. . LICENSE NBR
473 FB.
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ROGERS, RODNEY BRENT
787 S.W. 120TH WAY
DAVIE FL 33325
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JEB BUSH
GOVERNOR
DISPLAY AS REQUIRED BY LAW
SIMO MARSTILLER
SECRETARY
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fiJ[p[fJ@fJi1(i]iJS! @
PROPQSER GUARANTEES AND WARRANTIES AND
STANDARD TERMS & CONDITIONS
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APPENDIX E
PROPOSER GUARANTEES and WARRANTIES and STANDARD TERMS & CONDITIONS
1.
The proposer certifies 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 willful or negligent acts, or omissions of any
officers, employees or agents thereof.
3.
Proposer warrants that it will not delegate or subcontract its responsibilities under an agreement without
the prior written permission of the City of Sunny Isles Beach.
4.
Proposer warrants that all information provided by it in connection with this proposal IS true and
accurate.
Signat",eofOfficb], /~1'~
Name (typed): Antonio J. Grau
Title: President
Firm:
Grau & Associates
Date:
04/30/2007
4/23/2007
City of Sunny Isles Beach: Request for Proposal- Audit Services
29
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APPENDIX E
PROPOSER GUARANTEES and WARRANTIES and STANDARD TERMS & CONDITIONS
Successful firm must provide Errors and Omissions coverage with limits for no less than $1 million.
4/23/2007
City of Sunny Isles Beach: Request for Proposal - Audit Services
30
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SWORN STATEMENT PURSUANT TO
SECTION 287. 133(3)(a)
FLORIDA STA TUTES, ON PUBLIC ENTITY CRIMES
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Appendix G
SWORN STATEMENT PURSUANT TO SECTION 287.133(3)(a)
FLORIDA STATUTES. ON PUBLIC ENTITY CRIMES
THIS FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER
OFFICIAL AUTHORIZED TO ADMINISTER OATHS.
I. This sworn statement is submitted to City of Sunny Isles Beach
by Antonio J. Grau
for Professional Audit Services (RFP # 07-04-01)
whose business address is 2700 North Military Trail, Suite 350, Boca Raton, FL 33431
and (if applicable) its Federal Employer Identification Number (FEIN) is 20-2067322
(IF the entity had no FEIN, include the Social Security Number of the individual signing this sworn statement:
2. I understand that a "public entity crime" as defined in Paragraph 287 .133(1)(g), Florida Statutes, means a violation of
any state or federal law by a person with respect to and directly related to the transaction of business with any public
entity or with an agency or political subdivision of any other state or of the United States, including, but not limited to,
any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any
other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or
material misrepresentation.
3. I understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(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 I, 1989, as a result of a jury verdict,
nonjury trial, or entry of a plea of guilty or nolo contenders.
4. I understand that an "affiliate" as defined in Paragraph 287.133(1)(a), Florida Statutes, means:
a. A predecessor or successor of a person convicted of a public entity crime; or
b. An entity under the control of any natural person who is active in the management of the entity and who
has been convicted of a public entity come. The term "affiliate" includes those officers, directors,
executives, partners, shareholders, employees, members, and agents who are active in the
management of an affiliate. The ownership by one person of shares constituting a controlling interest in
another person, or a pooling of equipment or income among persons when not for fair market value
under an arm's length agreement, shall be a prima facie case that one person controls another person.
A person who knowingly enters into 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.
5. I understand that a "person" as defined in Paragraph 287.133(I)(e), Florida Statutes, means any natural
person or entity organized under the laws of any state or of the United States with the legal power to enter
into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let
by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term
"person" includes those officers, directors, executives, partners, shareholders, employees, members, and
ag.:9.e ts who are active in management of any entity.
/~ ~~ Antonio J. Grau
SIGN_ URE OF AFFIANT (Printed or Typed Legal Name of Affiant)
State of :rt012.1 cLCt..--County of if'a)n\ BeAd,
Sworn to and subscribed before 1 day of i-{~
, 2007 by
Notar
1I%rl~C4{<--
SANDRA D. BLACKMAN
MY COMMISSION # DD 572289
EXPIRES: August 14, 2010
Bonde<! Thru Notary Pub,c Underwrite's
Notary's Name Printed, Stamped or Typed
...,I'I~tJ~.",
l';f.A".'f:"~';i:-~
Ci j*i
.;.10 .~.
"l,i'O"f\,$'~
.,.t..,,"
Personally Known:
.,/
v
or Produced Identification
Identification Produced
4/23/2007
City of Sunny Isles Beach: Request for Proposal - Audit Services
34
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ifJ;p!]J@!JilrflOJ:! gi
NON-COLLUSIVE AFFIDA VIT
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Appendix H
NON-COLLUSIVE AFFIDA VIT
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State of ~)
County of 11", &ad1
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Antonio J. Grau
being first duly sworn, deposes and says that:
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(1) He/she is the (Owner, Partner, Officer, Representative or Agent) of the Bidder
that has submitted the attached Bid;
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(2) He/she is fully informed respecting the preparation and contents of the attached Bid and of all pertinent
circumstances respecting such Bid;
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(3) Such Bid is genuine and is not a collusive or sham Bid;
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(4) Neither the said 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 Bid in connection with the Work for
which the attached Bid has been submitted; or to refrain from bidding in connection with such Work; or have in any
manner, directly or indirectly, sought by agreement or collusion, or communication, or conference with any Bidder,
firm, or 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;
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(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, representatives,
owners, employees or parties in interest, including this Affiant.
/-,
///~ ~.-"\-
(.../ SIG TURE OF AFFIANT
State of F-I 0 .e..., ,k../ County of ~-A-- \ Ii', bl!;f2d 1
Sworn to and subscribed before me this ::L. day of Ht+;J ~
<)IL-,I\~\-L'l.-- ~ 0llLt K\,)\ atL
Antonio J. Grau
(Printed or Typed Legal Name of Affiant)
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, 2007 by
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Notary Seal:
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No,"ry', N,me P<;nted, 57ed DC Typed
Personally Known: or Produced Identification _
Identification Produced
,J.~ [; f!y&'(Z)/itliL
....;,;j\~~~~ SANDRA D. BLACKMAN
f.~?o'/,;;,\~; MY COMMISSION # DD 572289
~.~.~~j EXPIRES: August 14, 2010
--t.r;h;.,i\llf.i" Borns.d lhru Notary Public Underwriters
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4/23/2007
City of Sunny Isles Beach: Request for Proposal - Audit Services
35
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~: C)YJJ. (f)1/&i\~~ R
,'" f ~fJW:' ~
r u ,I
THREE RECENT IlMANAGEMENT LETTERS"
DEVELOPED IN CONNECTION WITH
LOCAL GOVERNMENT AUDITS
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'r'~r~~if~d ~~~~~~~!:~
2700 North Military Trail. Suite 350
Boca Raton, Florida 33431
(561) 994-9299 . (800) 299-4728
Fax (561) 994-5823
www.qraucpa.com
MANAGEMENT LETTER PURSUANT TO THE RULES OF
THE AUDITOR GENERAL FOR THE 5T ATE OF FLORIDA
XXXXXXXXXXXXXXXXXX
XXXXXXXXXX, Florida
We have audited the accompanying basic financial statements of XXXXXXXXXXXXXXXXXX ("XXXXXX")
as of and for the fiscal year ended September 30, 2006, and have issued our report thereon dated
January 22, 2007.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
In addition, we have issued our Independent Auditor's Report on Internal Control Over Financial
Reporting and Compliance and Other Matters dated January 22, 2007. Disclosures in that report should
be considered in conjunction with this management letter.
The purpose of this letter is to comment on those matters required by Chapter 10.550 of the Rules of the
Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial
statements of the XXXXXX, as described in the first paragraph, we report the following:
I. Current year findings and recommendations.
II. Status of prior year findings and recommendations.
III. Compliance with the Provisions of the Auditor General of the State of Florida.
This report is intended for the information of the management, Board of Supervisors of
XXXXXXXXXXXXXXXXXX, XXXXXXXXXX, Florida and the Auditor General of the State of Florida and is
not intended to be and should not be used by anyone other than these specified parties.
We wish to thank XXXXXXXXXXXXXXXXXX, XXXXXXXXXX, 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.
January 22, 2007
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REPORT TO MANAGEMENT
I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS
Debt Service Reserve Reauirement
Findinq: The XXXXXX is required to maintain a certain balance in the Debt Service Reserve Fund.
The requirement has not been met for the Series 1999A Bonds as the XXXXXX utilized part of the
Reserve Fund to pay a portion of the debt service on the Bonds in a prior year. The Reserve Fund is
underfunded as of September 30, 2006.
Recommendation: The XXXXXX should replenish the Debt Service Reserve Fund as required in the
Bond Indenture or the XXXXXX should obtain a waiver from the Trustee.
Manaqement Response: When the initial developer departed, the XXX XXX acquired the multi-family
parcel through deed in lieu of foreclosure. The XXXXXX then marketed and sold the multi-family
parcel. The sale proceeds only covered a portion of the total bond indebtedness secured by
assessments related to the multi-family parcel. The bondholders executed a Direction and Indemnity
Letter instructing the Trustee to use 95% of the 1999 Reserve Account to increase the bondholders'
return. This action lowered the balance in the Reserve Account below the required level. The
Direction did not include a duty for the XXXXXX to replenish the Reserve Account to the original level.
In a conversation, the Trustee acknowledged that the Reserve Account balance is below the required
level, that the Direction did not create a duty for the XXXXXX to replenish the balance to the required
amount and that the XXXXXX is not in default under these circumstances.
Budaet to Actual
Observation: Actual expenditures in the general fund exceed budgeted appropriations for the fiscal
year ended September 30,2006.
Recommendation: The XXXXXX should amend the budget such that actual expenditures do not
exceed budgeted appropriations within 60 days subsequent to the end of the fiscal year end.
Manaqement Response: Management will review the current year spending to ensure that
expenditures do not exceed appropriations.
II. PRIOR YEAR FINDINGS AND RECOMMENDATIONS
Debt Service Reserve Reauirement
Findinq: The XXXXXX is required to maintain a certain balance in the Debt Service Reserve Fund.
The requirement has not been met for the Series 1999A Bonds as the XXX XXX utilized part of the
Reserve Fund to pay a portion of the debt service on the Bonds in a prior year. The Reserve Fund is
underfunded as of September 30, 2005.
Recommendation: The XXX XXX should replenish the Debt Service Reserve Fund as required in the
Bond Indenture or the XXXXXX should obtain a waiver from the Trustee.
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Manaqement Response: When the initial developer departed, the XXX XXX acquired the multi-family
parcel through deed in lieu of foreclosure. The XXXXXX then marketed and sold the multi-family
parcel. The sale proceeds only covered a portion of the total bond indebtedness secured by
assessments related to the multi-family parcel. The bondholders executed a Direction and Indemnity
Letter instructing the Trustee to use 95% of the 1999 Reserve Account to increase the bondholders'
return. This action lowered the balance in the Reserve Account below the required level. The
Direction did not include a duty for the XXXXXX to replenish the Reserve Account to the original level.
In a conversation, the Trustee acknowledged that the Reserve Account balance is below the required
level, that the Direction did not create a duty for the XXXXXX to replenish the balance to the required
amount and that the XXXXXX is not in default under these circumstances.
Current year status: The matter has not been resolved and will be repeated in the current year.
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III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF
FLORIDA
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1.
Unless otherwise required to be reported in the auditor's report on compliance and on internal
controls, the management letter shall include, but not be limited to a statement as to whether or
not corrective actions have been taken to address significant findings and recommendations
made in the preceding annual financial audit report. There were no significant findings and
recommendations made in the preceding annual financial audit report for the fiscal year ended
September 30,2005, except as disclosed above.
2.
The XXXXXX complied with Section 218.415, Florida Statutes, regarding the investment of
public funds.
3.
There were no violations of laws, rules, regulations, and contractual provisions or abuse, that
were not clearly inconsequential, that have occurred, or were likely to have occurred, that were
discovered within the scope of the audit, except as disclosed above.
4.
There were no illegal or improper expenditures that were not clearly inconsequential,
discovered within the scope of the audit that may not materially affect the financial statements,
except as disclosed above.
5.
There were no deficiencies in internal control that are not reportable conditions, including but
not limited to, improper or inadequate accounting procedures, failure to properly record
financial transactions or other inaccuracies, shortages, defalcations, or instances of fraud
discovered by, or that came to the attention of, the auditor, except at disclosed above.
6.
The XXXXXX has not met one or more of the conditions described in Section 218.503(1),
Florida Statutes.
7.
The financial report filed with the Florida Department of Financial Services pursuant to Section
218.32(1 )(a), Florida Statutes agrees with the September 30, 2006 financial audit report.
8.
The name and legal authority for the XXXXXX are disclosed in the notes to the financial
statements.
9.
We applied financial condition assessment procedures pursuant to Rule 10.556 (7) and no
deteriorating financial conditions were noted. It is management's responsibility to monitor
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.
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'r'Cjrc:.~if~d ~;~~~~~!~~
2700 North Military Trail. Suite 350
Boca Raton, Florida 33431
(561) 994-9299 . (800) 299-4728
Fax (561) 994-5823
www.qraucpa.com
MANAGEMENT LETTER PURSUANT TO THE RULES OF
THE AUDITOR GENERAL FOR THE STATE OF FLORIDA
XXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXX
XXXXXXX County, Florida
We have audited the accompanying basic financial statements of XXXXXXXXXXXXXXXXXX (the
"XXXXXX") as of and for the fiscal year ended September 30, 2005, and have issued our report thereon
dated July 20, 2006.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement.
In addition, we have issued our Report on Internal Control over Financial Reporting and Compliance and
Other Matters dated July 20, 2006. Disclosures in that report should be considered in conjunction with
this management letter.
The purpose of this letter is to comment on those matters described in Chapter 10.550 of the Rules of the
Auditor General for the State of Florida. Accordingly, in connection with our audit of the financial
statements of the XXXXXX, as described in the first paragraph, we report the following:
I. Current year findings and recommendations.
II. Status of prior year findings and recommendations.
III. Compliance with the Provisions of the Auditor General of the State of Florida.
This report is intended for the information of the management, Board of Supervisors of
XXXXXXXXXXXXXXXXXX, XXXXXXX County, Florida and the Auditor General of the State of Florida
and is not intended to be and should not be used by anyone other than these specified parties.
We wish to thank XXXXXXXXXXXXXXXXXX, XXXXXXX County, 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.
July 20, 2006
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REPORT TO MANAGEMENT
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I. CURRENT YEAR FINDINGS AND RECOMMENDATIONS
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Findinq: As a result of performing the financial condition assessment procedures it was determined
that a deteriorating financial condition exists with respect to the Enterprise Fund operations. For the
fiscal year ended September 30, 2005, the XXXXXX has reported accumulated deficits in its
Enterprise Fund. The accumulated deficit as of September 30, 2005 is $5,736,254. The balance
owed to the Developer of $7,662,652 includes the Developer Reserve Deficiency Requirement and
related accrued interest payable, start up costs of the golf course and funds used for the operation of
the golf course. The XXXXXX is dependent on the Developer and ultimate repayment of the
advances is uncertain at this time.
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Manaqement Response: Management concurs.
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II. PRIOR YEAR FINDINGS AND RECOMMENDATIONS
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Findinq: As a result of performing the financial condition assessment procedures it was determined
that a deteriorating financial condition exists with respect to the enterprise fund operations. For the
fiscal year ended September 30, 2004, the XXXXXX has reported accumulated deficits in its
enterprise fund. The accumulated deficit as of September 30, 2004 is $4,449,572. The enterprise
fund is used to account for the operations of the recreational facilities of the XXXXXX. The
recreational facilities include a championship eighteen-hole golf course, a pro shop, putting green and
a driving range, a clubhouse and other recreational facilities. The accumulated deficits arose from
depreciation expense, which is a non-cash item, and the treatment of Developer advances as Due to
Developer and Developer loans. The balance owed to the Developer of $6,360,856 includes the
Developer Reserve Deficiency Requirement, start up costs of the golf course and funds used for the
operation of the golf course. The XXXXXX is dependent on the Developer and ultimate repayment of
the advances is uncertain at this time.
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It should be noted that the prior deficits did not result in any failure to meet current obligations,
including scheduled bond principal maturities and interest payments.
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Golf Course AccountinQ
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Findinq: Accounting records and internal financial reports of the enterprise fund have not been
maintained in accordance with accounting principles generally accepted in the United States of
America.
a. Accounts Receivable are not in agreement with underlying records.
b. No record of fixed assets is maintained.
c. Full accrual basis is not used.
d. Bank reconciliation items are not posted to the general ledger.
e. Activity of the Developer is included in the general ledger.
f. The State mandated chart of accounts has not been utilized by the enterprise fund.
g. All purchases and expenses relating to the enterprise fund are affected by direct purchase by,
and reimbursement to the Developer/Golf Course Facilities Manager. Management has
assured us that the fund is not overpaying for these items even though if the fund was the
direct purchaser of these items, its tax-exempt status could be utilized to avoid payment of
sales tax. Management has not produced proof of this. Although sales tax could be avoided
on selected items, there are many items which sales tax is paid by the end user as opposed to
the golf club. There are also purchasing power advantages that may be realized by wel which
would not be available to a stand-alone golf club.
h. The enterprise fund reimburses the Developer / Golf Course Facilities Manager a significant
amount each month for equipment leases. No sub-leases between the parties exist thereby
technically relieving the enterprise fund of all obligations under the lease contracts. This may
or may not be the case should the obligations not be fulfilled and termination charges be
assessed. Although no sub-leases exist between the parties, this is not deemed to be a
material weakness as the golf club could obtain new leases if necessary. The terms of
potential new leases would likely be similar to existing terms.
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II. PRIOR YEAR FINDINGS AND RECOMMENDATIONS (Continued)
Golf Course AccountinQ (Continued)
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Manaqement Response: Management concurs.
Current Status: No items will be repeated in the current year.
III. COMPLIANCE WITH THE PROVISIONS OF THE AUDITOR GENERAL OF THE STATE OF
FLORIDA
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1.
Unless otherwise required to be reported in the auditor's report on compliance and on internal
controls, the management letter shall include, but not be limited to a statement as to whether or
not corrective actions have been taken to address significant findings and recommendations
made in the preceding annual financial audit report. There were no significant findings and
recommendations made in the preceding annual financial audit report for the fiscal year ended
September 30,2004, except as disclosed above.
2.
The XXX XXX complied with Section 218.415, Florida Statutes, regarding the investment of
public funds.
3.
There were no violations of laws, rules, regulations, and contractual provisions or abuse, that
were not clearly inconsequential, that have occurred, or were likely to have occurred, that were
discovered within the scope of the audit, except as disclosed above.
4.
There were no illegal or improper expenditures that were not clearly inconsequential,
discovered within the scope of the audit that may not materially affect the financial statements,
except as disclosed above.
5.
There were no deficiencies in internal control that are not reportable conditions, including but
not lim ited to, improper or inadequate accounting procedures, failure to properly record
financial transactions or other inaccuracies, shortages, defalcations, or instances of fraud
discovered by, or that came to the attention of the auditor, except as disclosed above.
6.
The name and legal authority for the XXXXXX are disclosed in the notes to the financial
statements.
7.
The financial report filed with the Florida Department of Financial Services pursuant to Section
218.32(1 )(a), Florida Statutes agrees with the September 30, 2005 financial audit report.
8.
In connection with our audit, we determined that the XXXXXX met a condition described in
Section 218.503(1), Florida Statutes. For the fiscal year ended September 30, 2005, the
XXXXXX reported accumulated deficit in its enterprise fund of $(5,736,254). We applied
financial condition assessment procedures pursuant to Rule 10.556 (8) and determined that a
deteriorating financial condition was noted. See I above for recommendation related to financial
condition. It is management's responsibility to monitor 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 enterprise fund is used to account for the operations of the golf course recreational
facilities of the XXXXXX. The recreational facilities include a championship eighteen-hole golf
course, a pro shop, putting green and a driving range, a clubhouse and other recreational
facilities. The accumulated deficits arose from depreciation expense, which is a non-cash item,
and the treatment of Developer advances as Due to Developer and Developer loans. The
XXXXXX is dependent on the Developer and ultimate repayment of advances and loans
totaling $7,662,652 is uncertain at this time.
It should be noted that the prior deficits did not result in any failure to meet current obligations,
including scheduled bond principal maturities and interest payments.
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'rr;Cfr'!.~il~d ~~~~:~~!~~
2700 North Military Trail. Suite 350
Boca Raton, Florida 33431
(561) 994-9299' (800) 299-4728
Fax (561) 994-5823
www.Qraucpa.com
MANAGEMENT LETTER IN ACCORDANCE WITH
THE RULES OF THE AUDITOR GENERAL OF THE STATE OF FLORIDA
XXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXX, Florida
We have audited the basic financial statements of the XXXXXXXXXXXXXXXXXX, Florida (the XXXXX)
as of and for the year ended September 30, 2005, and have issued a report thereon dated December 18,
2006. We did not audit the financial statements of the XXXXXXXXXXXXXXXXXX Police Officers
Retirement System or the XXXXXXXXXXXXXXXXXX Firefighters' Pension Plan, which together
represents 89% of the assets and 82% of the revenues of the fiduciary fund totals, which are included in
the fund financial statements. Those statements were audited by other independent auditors whose
reports thereon have been furnished to us, and our opinion, insofar as it related to the amounts included
for the Police Employees Pension Trust Fund and the Firefighters' Pension Plan, are based solely upon
the reports of the other independent auditors. The financial statements of the XXXXXXXXXXXXXXXXXX
Police Employees Pension Trust Fund and the Firefighters' Pension Plan were not audited in accordance
with Government Auditing Standards.
We conducted our audit in accordance with auditing standards generally accepted in the United States;
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations; and the requirements described in the Executive Office of the Governor's
State Projects Compliance Supplement, and Chapter 10.550, Rules of the Auditor General. We have
issued our Report of Independent Certified Public Accountants on Compliance and Internal Control over
Financial Reporting, Report of Independent Certified Public Accountants on Compliance and Internal
Control over Compliance Applicable to each Major Federal Awards Program and State Financial
Assistance, Summary Schedule of Prior Audit Findings and Schedule of Findings and Questioned Costs.
Disclosures in those reports and schedules, which are dated December 18, 2006, should be considered
in conjunction with this management letter.
In connection with our audit of the basic financial statements of the XXXXX for the year ended September
30, 2005, we report the following in accordance with Chapter 10.550 Rules of the Auditor General, Local
Governmental Entity Audits which requires that this report specifically address but not be limited to the
matters outlined in Rule 10.554(1 )(h):
1. Unless otherwise required to be reported in the auditor's report on compliance and on internal
controls, the management letter shall include, but not be limited to a statement as to whether or
not corrective actions have been taken to address significant findings and recommendations
made in the preceding annual financial audit report. There were no significant findings and
recommendations made in the preceding annual financial audit report for the fiscal year ended
September 30,2004, except as disclosed in the Schedule of findings and questioned costs.
2. The XXXXX did not comply with Section 218.415, Florida Statutes, regarding the investment of
public funds. See Schedule of findings and questioned costs.
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3.
There were no violations of laws, rules, regulations, and contractual provisions or abuse ,that
were not clearly inconsequential, that have occurred, or were likely to have occurred, that were
discovered within the scope of the audit except as disclosed in the Schedule of findings and
questioned costs.
4.
There were no illegal or improper expenditures that were not clearly inconsequential,
discovered within the scope of the audit that may not materially affect the financial statements,
except as disclosed in the Schedule of findings and questioned costs.
5.
There were no deficiencies in internal control that are not reportable conditions, including but
not limited to, improper or inadequate accounting procedures, failure to properly record
financial transactions or other inaccuracies, shortages, defalcations, or instances of fraud
discovered by, or that came to the attention of, the auditor except as disclosed in the Schedule
of findings and questioned costs.
6.
The XXXXX has not met one or more of the conditions described in Section 218.503(1), Florida
Statutes.
7.
The financial report filed with the Florida Department of Financial Services pursuant to Section
218.32(1 )(a), Florida Statutes agrees with the September 30, 2005 financial audit report.
8.
The XXXXX was incorporated by Laws of Florida 61-2056; the XXXXX's component unit, the
XXXXXXXXXXXXXXXXXXXXXXXXX was established May 4, 1988 by Ordinance 88-23.
9.
During the course of our audit, we applied financial condition assessment procedures pursuant
to Rule 10.566(8). It is management's responsibility to monitor the XXXXX's financial condition,
and our financial condition assessment, which was performed as of the XXXXX's fiscal year
end, was based on representations made by management and the review of financial
information provided by the XXXXX. There were no findings regarding deteriorating financial
conditions.
This report is intended solely for the information and use of the Mayor, XXXXX Council, management and
the Auditor General of the State of Florida and is not intended to be and should not be used by anyone
other than these specified parties.
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December 18, 2006
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h1~JrVifli~ ~
~\':;::jUHJl'!1JU~ ~'
STANDARD SERIfICES AND
CONSUL TING AGREEMENT
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'l'~r':.~if~d ~~~~~~~!:~
2700 North Military Trail' Suite 350
Boca Raton, Florida 33431
(561) 994-9299 . (800) 299-4728
Fax (561) 994-5823
www.qraucpa.com
May 2, 2007
XXXXXXXXXXXXXXX
112233 ABC Street
Sample, Florida XXXXX
DearXXXXXXXXXXXX:
We are pleased to confirm our understanding of the services we are to provide the XXXXXXXXXXXXXXX,
Florida (the "XXXXXXX") for the fiscal years ended September 30, 2007, 2008 and 2009. We will audit the
financial statements of the governmental activities and major fund, which collectively comprise the entity's
basic financial statements, of the XXXXXXX as of and for the fiscal years ended September 30, 2007, 2008
and 2009.
The document we submit to you will include the following supplementary information required by generally
accepted accounting principles that will be sybjected to certain limited procedures, but will not be audited:
1. Management's Discussion and Analysis
2. Budgetary comparison schedule for the general fund
Audit Objectives
The objective of our audit is the expression of an opinion as to whether your financial statements are fairly
presented, in all material respects, in conformity with U.S. generally accepted accounting principles and to
report on the fairness of the additional information referred to in the first paragraph when considered in
relation to' the' financial statements taken as a whole. Our audit will be conducted in accordance with U.S.
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generally accepted auditing standards; the standards for financial audits contained in Government Auditing
Standards, issued by th'e Comptroller General of the United States, and will include tests of accounting
records of the XXXXXXX and other procedures we consider necessary to enable us to express such an
opinion. If our opinion on the financial statements is other than unqualified, we will fully discuss the reasons
with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not
formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement.
We will also provide a report (that does not include an opinion) on internal control related to the financial
statements and compliance with the provisions of applicable laws, regulations, contracts, agreements, and
grants, noncompliance with which could have a material effect on the financial statements as required by
Government Auditing Standards. This report will include a statement that the report is intended solely for the
information and use of the management and specific legislative or regulatory bodies and is not intended to
be and should not be used by anyone other than these specified parties.
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Management Responsibilities
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Management is responsible for establishing and maintaining effective internal control and for compliance
with the provisions of applicable laws, regulations, contracts, agreements, and grants. In fulfilling this
responsibility, estimates and judgments by management are required to assess the expected benefits
and related costs of the controls. The objectives of internal control are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use
or disposition, that transactions are executed in accordance with management's authorizations and
recorded properly to permit the preparation of financial statements in accordance with generally accepted
accounting principles.
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Management is responsible for making all financial records and related information avail~ble to us. We
understand that you will provide us with such information required for our audit and that you are
responsible for the accuracy and completeness of that information. We will advise you about appropriate
accounting principles and their application and will advise you in the preparation of your finan-cial
statements, but the responsibility for the financial statements remains with you. As part of our
engagement, we may propose standard, adjusting, or correcting journal entries to your financial
statements. You are responsible for reviewing the entries and understanding the nature of any proposed
entries and the impact they have on the financial statements. That responsibility includes the
establishment and maintenance of adequate records and effective internal control over financial reporting,
the selection and application of accounting principles, and the safeguarding of assets. Management is
responsible for adjusting the financial statements to correct material misstatements and for confirming to
us in the representation letter that the effects of any uncorrected misstatements aggregated by us during
the current engagement and pertaining to the latest period presented are immaterial, both individually and
in the aggregate, to the financial statements taken as a whole.
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You are responsible for the design and implementation of programs and controls to prevent and detect
fraud, and for informing us about all known or suspected fraud, or illegal acts affecting the government
involving (1) management, (2) employees who have significant roles in internal control, and (3) others
where the fraud or illegal acts could have a material effect on the financial statements. You are also
responsible for informing us of your knowledge of any allegations of fraud or suspected fraud, or illegal
acts affecting the government receivea in communications from employees, former employees, grantors,
regulators, or others. In addition, you are responsible for identifying and ensuring that the entity complies
with applicable laws and regulations and for taking timely and appropriate steps to remedy any fraud,
illegal acts, violations of cpntracts or grant ~weements, or abuse that we may report.
With regard to the electronic dissemination of audited financial statements, including financial statements
published electronically on your website, you understand that electronic sites are a means to distribute
information and, therefore, we are not required to read the information contained in these sites or to
consider the consistency of other information in the electronic site with the original document.
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As part of. the audit, we will prepare a draft of your financial statements and related notes. In accordance
with Government AUdiling 'Standards, you will be required to review and approve those financial
statements prior to their issuance and have a responsibility to be in a position in fact and appearance to
make an informed judgment on those financial statements. Further, you are required to designate a
qualified management-level individual to be responsible and accountable for overseeing our services.
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While we will assist in the preparation of the XXXXXXX's financial statements, responsibility for the
financial statements and preparation of Management's Discussion and Analysis are the responsibility of
the XXXXXXX.
Audit Procedures-General
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An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
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examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are free of material misstatement, whether
from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or
governmental regulations that are attributable to the entity or to acts by management or employees acting
on behalf of the entity. Because the determination of abuse is subjective, Government Auditing Standards
do not expect auditors to provide reasonable assurance of detecting abuse.
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Because an audit is designed to provide reasonable, but not absolute assurance and because we will not
perform a detailed examination of all transactions, there is a risk that material misstatements may exist
and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or
violations of laws or governmental regulations that do not have a direct and material effect-on the financial
statements. However, we will inform you of any material errors that come to our attention, and we will
inform you of any fraudulent financial reporting or misappropriation of assets that comes to our attention.
Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters
that might arise during any later periods for which we are not engaged as auditors.
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Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, creditors,
and financial institutions. We will request written representations from your attorneys as part of the
engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will
also require certain written representations from you about the financial statements and related matters.
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Audit Procedures-Internal Controls
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In planning and performing our audit, v,.'e, will consider the internal control sufficient to plan the audit in
order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing
our opinion on the XXXX)$XX's financial statements.
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We will obtain an understanding of the design of the relevant controls and whether they have been placed
in operation, and we will assess control-risk. Tests of controls may be performed to test the effectiveness
of certain controls that we cbnsider relevant to preventing and detecting errors and fraud that are material
to the financial statements and to preventing and detecting misstatements resulting from illegal acts and
other noncompliance matters that have a direct and material effect on the financial statements. Tests of
controls relative to-the financial statements are required only if control risk is assessed below the
maxim'um level. Our tests, if performed, will be less in scope than would be necessary to render an
opinidn on internal control and, accordingly, no opinion will be expressed in our report on internal control
issued pursuant to Government Auditing Standards.
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An audit is not desig"ned to provide assurance on internal control or to identify reportable conditions.
However, we will inform the governing body or audit committee of any matters involving internal control
and its operation that we consider to be reportable conditions under standards established by the
American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our
attention relating to significant deficiencies in the design or operation of the internal control that, in our
judgment, could adversely affect the entity's ability to record, process, summarize, and report financial
data consistent with the assertions of management in the financial statements. We will also inform you of
any non-reportable conditions or other matters involving internal control, if any, as required by
Government Auditing Standards.
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Audit Procedures-Compliance
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Identifying and ensuring that the XXXXXXXXXXXXXXX complies with the provisions of laws, regulations,
contracts, agreements, and grants is the responsibility of management. As part of obtaining reasonable
assurance about whether the financial statements are free of material misstatement, we will perform tests
of the XXXXXXX's compliance with the provisions of applicable laws, regulations, contracts, agreements,
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and grants. However, the objective of our audit will not be to provide an opinion on overall compliance
and we will not express such an opinion.
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Audit Administration, Fees, and Other
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We understand that your employees will prepare all cash, accounts receivable, or other confirmations we
request and will locate any documents selected by us for testing.
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The audit documentation for this engagement is the property of Grau & Associates and constitutes
confidential information. However, pursuant to authority given by law or regulation, we may be requested
to make certain audit documentation available to a cognizant or oversight agency for audit or its
designee, a federal agency providing direct or indirect funding, or the U.S. Government Accountability
Office for purposes of a quality review of the audit, to resolve audit findings, or to carry out oyersight
responsibilities. We will notify you of any such request. If requested, access to such audit. documentation
will be provided under the supervision of Grau & Associates personnel. Furthermore, upon<,request, we
may provide copies of selected audit documentation to the aforementioned parties. These parties may
intend, or decide, to distribute the copies or information contained therein to others, including other
governmental agencies. Notwithstanding the foregoing, the parties acknowledge that various documents
reviewed or produced during the conduct of the audit may be public records under Florida law. The
XXXXXXX agrees to notify Grau & Associates of any public record request it receives that involves audit
documentation.
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Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report
reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that our
gross fees, including expenses, will be as follows:
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Year ending September 30:2007
Year ending September 30,2008
Year ending September 30, 2009
$XXXXX
$XXXXX
$XXXXX
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Our standard hourly rates vary according to the degree of responsibility involved and the experience level
of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work
progresses and are payable on preksentation:lnvoices will be submitted in sufficient detail to demonstrate
compliance with the terms of this agreement. In accordance with our firm policies, work may be
suspended if your account becomes 60 days or more overdue and may not be resumed until your
account is pai(j in full. If we elect to terminate our services for nonpayment, our engagement will be
deemed to ~ave be_~n completed upon written notification of termination, even if we have not completed
our report. You will be obligated'to compensate us for all time expended and to reimburse us for all out-
of-pocket costs through the date of termination. The above fees are based on anticipated cooperation
from your personnel and the assumption that unexpected circumstances will not be encountered. If
significanradditional time is necessary, we will discuss it with you and arrive at a new fee estimate.
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Government Auditing Standards require that we provide you with a copy of our most recent external peer
review report and any letter of comment, and any subsequent peer review reports and letters of comment
received during the period of the contract. Our 2004 peer review report accompanies this letter.
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We appreciate the opportunity to be of service to the XXXXXXX and believe this letter accurately
summarizes the significant terms of our engagement. If you have any questions, please let us know. If
you agree with the terms of our engagement as described in this letter, please sign the enclosed copy
and return it to us.
Very truly yours,
Grau & Associates
Antonio J. Grau
RESPONSE:
This letter correctly sets forth the understanding of XXXXXXXXXXXXXXX, Florida.
By:
Title:
Date:
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