17To:
Via:
From:
Date:
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The Honorable Mayor & Members of the City Commission
Buford R. "Randy" Witt, Acting City Manager i . K. („ ),u
Alfredo Riverol, Finance Director
August 13, 2010
A Resolution of the Mayor and City Commission of the City
of South Miami, Florida, authorizing the Acting City Manager
Subject: to engage Keefe, McCullough & Co., LLP for an amount not
to exceed $25,000 to perform a special audit of the city
owned parking garage located at 5829 SW 73rd Street; and
providing an effective date.
The City Attorney believes that time is of the essence and
that it is in the best interest of the City to engage Keefe,
Background: McCullough & Co., LLP to perform a special audit to assist
the city in reviewing the arrangements between the City and
Mark Richman Properties.
- Engagement Letter
Backup Documentation: -List of Respondents
- Resolution 101 -10 -13135
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RESOLUTION NO.
A Resolution of the Mayor and City Commission of the City of
South Miami, Florida, authorizing the Acting City Manager to
engage Keefe, McCullough & Co., LLP for an amount not to
exceed $25,000 to perform a special audit of the city owned
parking garage located at 5829 SW 73rd Street; and providing
an effective date.
WHEREAS, the City Attorney believes that time is of the essence and that it is in
the best interest of the City to engage Keefe, McCullough & Co., LLP to perform a
special audit to assist the city in reviewing the arrangements between the City and Mark
Richman Properties.
WHEREAS, the City Commission approves the agreed -upon procedures which
the City has specified. Attached are the conditions stipulated in the engagement letter as
well as a list of respondents.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA;
Section 1. That the City Commission hereby authorizes the Acting City
Manager to engage in an agreement with Keefe, McCullough & Co., LLP for an amount
not to exceed $25,000 to perform a special audit of the city owned parking garage located
at 5920 SW 73RD Street.
Section 2. That the City Commission hereby approves the conditions
stipulated in the attached engagement letter.
Section 3. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this _ day of 2010.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM
AND SUFFICIENCY:
CITY ATTORNEY
Page 1 of 1
MAYOR
COMMISSION VOTE:
Mayor Stoddard:
Vice Mayor Newman:
Commissioner Palmer:
Commissioner Beasley:
Commissioner Harris:
Additions shown by underlining and deletions shown by evef erg.
Keefe, McCullough & Co., LLP
Certified Public Accountants
August 12, 2010
Members of the Audit Committee
Members of the City Commission
City of South Miami, Florida
6130 Sunset Drive
South Miami, Fl 33143
Dear Audit Committee and City Commission Members:
We are pleased to confirm our understanding of the nature and limitations of the
services we are to provide for the City of South Miami, Florida (the "City ").
We will apply the agreed -upon procedures which the City has specified, listed in the
attached schedule, to the contracts and financial records related to the South Miami
Municipal Parking Garage capital outlays and related expenditures from its inception
and through September 30, 2009. This engagement is solely to assist the City in
reviewing the arrangements between the City and Mark Richman Properties, Inc. Our
engagement to apply agreed -upon procedures will be conducted in accordance
with attestation standards established by the American Institute of Certified Public
Accountants. The sufficiency of the procedures is solely the responsibility of those
parties specified in the report. Consequently, we make no representation regarding
the sufficiency of the procedures described in the attached schedule either for the
purpose for which this report has been requested or for any other purpose. If, for any
reason, we are unable to complete the procedures, we will describe any restrictions
on the performance of the procedures in our report, or will not issue a report as a result
of this engagement.
Because the agreed -upon procedures listed in the attached schedule do not
constitute an examination, we will not express an opinion. In addition, we have no
obligation to perform any procedures beyond those listed in the attached schedule.
We will submit a report listing the procedures performed and our findings. This report is
intended solely for the use of City of the South Miami, Florida, and should not be used
by anyone other than this specified party. Our report will contain a paragraph
indicating that had we performed additional procedures, other matters might have
come to our attention that would have been reported to you.
You are responsible for the presentation of the final agreed -upon procedures report in
conjunction with the contracts and financial records related to the South Miami
Municipal Parking Garage since its inception and through September 30, 2009; and
for selecting the criteria and determining that such criteria are appropriate for your
purposes. You are also responsible for making all management decisions and
performing all management functions; for designating an individual with suitable skill,
knowledge, or experience to oversee the services that we provide; and for evaluating
the adequacy and results of those services and accepting responsibility for them.
6550N. Federal Highway N Suite 4109 Fort Lauderdale, FL 33308 IS 954.771.0896 0954.938.9353 (F) 9 kmc@kmccpo.com
City of South Miami, Florida -2- August 12, 2010
At the conclusion of our engagement, we will require a representation letter from
management that, among other things, will confirm management's responsibility for
the presentation of the final agreed -upon procedures report in accordance with the
selected procedures described in the attached schedule.
We estimate that our fees for these services will not exceed $ 25,000. The fee estimate
is based on anticipated cooperation from your personnel and all parties involved and
the assumption that unexpected circumstances will not be encountered during the
engagement. If significant additional time is necessary, we will discuss it with you and
arrive at a new fee estimate before we incur the additional costs. Our invoices for
these fees will be rendered each month as work progresses and are payable on
presentation,
We appreciate the opportunity to assist the City 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. If the need for additional
procedures arises, our agreement with you will need to be revised. It is customary for
us to enumerate these revisions in an addendum to this letter. If additional specified
parties of the report are added, we will require that they acknowledge in writing their
responsibility for the sufficiency of the procedures.
Re rds,
KEtF , M ULLOUGH & CO., LLP
Willi G. enson, C.P.A.
Acknowledgement:
CITY OF SOUTH MIAMI, FLORIDA
M
Tit
CITY OF SOUTH MIAMI, FLORIDA
SCHEDULE OF AGREED -UPON PROCEDURES
FOR THE CITY OF SOUTH MIAMI
PARKING GARAGE CAPITAL OUTLAYS AND RELATED EXPENDITURES
FROM ITS INCEPTION THROUGH SEPTEMBER 30, 2009
1. Review all of the agreements approved and /or amended between the City
and Mark Richman Properties, Inc., associated with the construction and design
of the South Miami Municipal Parking Garage.
2. Develop an audit plan relative to the garage construction costs and
operational revenues since inception.
3. Review all construction draws, including change orders, as requested to the
City, for proper supporting documentation.
4. Review all reimbursement requisitions for proper supporting documentation with
the following lenders:
a. Two bond indentures issued by the Florida Municipal Bond Council.
b. One promissory note issued by SunTrust and refinanced by Bank of
America.
5. Meet with personnel at Mark Richman Properties, Inc. and review accounting
procedures for the billing and collection of operational revenues.
6. Analyze the accuracy and timeliness of scheduled (debt repayment) cash
receipts, to the City of South Miami, Florida -
a. confirm outstanding balances as of the report date,
b. and consider additional interest accumulated on late payments, if any.
7. Determine the propriety of reported operational revenues.
8. Draft Report of Findings and Observations for discussion with Audit Committee,
City finance staff and City Commission.
9. Attend meetings to discuss findings and observations, as requested.
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RESOLUTION NO: 101 -10 -13135
A Resolution of the Mayor and City Commission of the City of South
Miami, Florida, accepting the recommendation of the City's Audit
Committee to conduct a complete audit of the books and records of Mark
Richman Properties, Inc, in connection with its operation of the parking
garage which is the subject of a March 11, 2005 Lease Agreement
between the City of South Miami and Mark Richman Properties, Inc.; and
providing an effective date.
Whereas, pursuant to Section 218.391, Fla. Star., the City has established an Audit
Committee to select an individual or firm to conduct the annual audit of the City's books and
records, and
Whereas, the City's Audit Committee has determined that it is in the City's best
interest to conduct a complete audit of the books and records of Mark Richman
Properties, Inc., in connection with the operation of a parking garage which is the subject
of a March 11, 2005 Lease in Agreement between the City of South Miami and Mark
Richman Properties, Inc., and
Whereas, pursuant to Section 19.4.4 of the Lease. Agreement the City has the right
to inspect the books and records of Mark Richman Properties, Inc., and
Whereas, the City's Audit Committee was not specifically tasked with drafting
and seeking a request for proposals to conduct an audit of the books and records of Mark
Richman Properties, Inc., but is willing to do so provided that the City Commission
delegates such task to the Audit Committee.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI, FLORIDA:
Section L The City Commission finds it to be in the best interests of the
residents of the City to conduct a complete audit of the books and records of Mark
I
Res. No. 101 -10 -13135
Richman Properties, Inc. in connection with its operation of the parking garage which is
the subject of a March 11, 2005 Lease Agreement between the City of South Miami and
Mark Richman Properties, Inc.
Section 2. The City's Audit Committee shall draft and issue a request for
proposals for accounting firm or individuals to enable the City to conduct a complete
audit of the books and records of Mark Richman Properties, Inc. in connection with its
operation of the parking garage which is the subject of a March 11, 2005 Lease
Agreement between the City of South Miami and Mark Richman Properties, Inc.
Section 3. Upon receipt of the proposals the Audit Committee shall meet and
recommend to the City Commission three individuals and/or firms to conduct the audit.
Thereafter, the City Commission shall determine whether it desires to fund the cost of the
audit and if so, which individual or firm should be hired to conduct the audit.
Section 4. This Resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 4th day of May 2010.
ATTEST:
\QITY CLERK
READ APPROVEZZ,
FORM:
j... J
CITY ATTORNEY
2
COMMISSION VOTE:
5 -0
Mayor Stoddard:
Yea
Vice Mayor Newman:
Yea
Commissioner Palmer:
Yea
Commissioner Beasley:
Yea
Commissioner Harris:
Yea