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Res. No. 188-01-11336i RESOLUTIONNO.188-01-11 33 6 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,RELATING TO FINANCIAL AUDIT SERVICES,ACCEPTING THE CITY MANAGER'S RECOMMENDATION TO EXECUTE A TWO-YEAR AUDIT CONTRACT WITH THE AUDIT FIRM OF RODRIGUEZ,TRUEBA &CO.WITH A RENEWAL OPTION CLAUSE,AND PROVIDING THE EFFECTIVE DATE. WHEREAS,article4,section4(e)of theCity Charter prohibitstheuse of thesame Financial Auditor formorethanthree consecutive years;and WHEREAS,the present CityFinancial Auditor hasbeen auditing the city books forthe last three years;and WHEREAS,inan attempt to select anew auditor,thecity administration advertised in the Miami Herald to solicit bids for a new auditor;and WHEREAS,atotal of seven accounting firmsshowedinterestinbiddingfortheaudit workby requesting bid package,butonlytwo of them actually submitted bids;and WHEREAS,a review committee was organized bythecity administration to review the bid proposals submitted;and WHEREAS,thereviewcommitteemembersinterviewedthe firms'partners and reviewed the proposals;and WHEREAS,based onthereview findings,the committee has recommended that the firm of Rodriguez,Trueba &Company be awarded the contract to perform the audit workforthe City. NOW,THEREFORE,BEIT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,THAT: Section 1.TheCity Manager's recommendation to execute a financial audit services contract with Rodriguez,Trueba &Company ishereby accepted. Section 2.The City Manager is authorized tosignthe service contract withthe option to renew for additional year,if so desired bytheCity. Section 3.This resolution shalltakeeffectimmediatelyuponapproval. PASSEDAND ADOPTED this 4th dayof December,2001. ATTEST:j APPROyEDr-^ ZtfUK^J CITY CLERK (J "-MAYOR COMMISSION VOTE:5-0READANDAPPROVEDASTOFORM:Mayor Robaina.Yea S^.^0 ^-i Vice Mayor Feliu:Yea "cf.^/£---•-•.<^<?,'//s<A CommissionerBethel:Yea CITY ATTORNEY 'Commissioner Russell:Yea Commissioner Wiscombe:Yea CITY OF SOUTH MIAMI INTER-OFFICE MEMORANDUM ******************************************************************** To:Mayor and City Commission -.Date:November 30,2001 From:Charles D.Scuit/Z///)Cl^Re:AGENDA ITEM #ft) City Manager /jfojcfa *Commission Mtng.12/4/01. L^Selection of Financial Auditor REQUEST A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,RELATING TO FINANCIAL AUDIT SERVICES, ACCEPTING THE CITY MANAGER'S RECOMMENDATION TO EXECUTE A TWO-YEAR AUDIT CONTRACT WITH THE AUDIT FIRM OF RODRIGUEZ, TRUEBA &CO.WITH A RENEWAL OPTION CLAUSE,AND PROVIDING THE EFFECTIVE DATE. BACKGROUND PursuanttoArticle4,section(4e)of theCityCharter,whichprohibitstheuse of one financial auditor for more than three consecutive years,theCity Administration solicited forbidsfora new auditor because our present auditor hasbeen engaged for three consecutive years. In order to accomplish this,a newspaper adwasplacedinthe Miami Herald for proposals. Initially,sevenfirms showed interest in submitting proposal by requesting forbid package. However,only two of these sevenfirms actually submitted proposal for consideration. A review committee was impaneled to examine the proposals received and interview the firms' partners to evaluate their experiences and determine their capabilities to offer the city thekind of service we desire. After careful deliberations,the committee has recommended that the contract for the non-era accounts financial audit service be provided tothefirm of Rodriguez,Trueba &Company.The firmis located in Miami-Dade County andhasbeen auditing ourCRA accounts inthelast couple of years.Thefinal decision wasbasedonthefollowingcriteria: a)The reasonableness of thefee quoted. b)Good understanding of theoverallsetup of theCity,most especially the accounting structure.As stated above,thefirmhasbeen auditing our CRA accounts inthe past two years. c)Generalabilitytoprovideadditionalservices,ifneededbytheCity,beyondtheregularfinancial audit work. Paymentfortheservicewillbechargedtoaccount #:001.1100.511.3210. Irecommendapproval of theresolution. H a r v e y , B r a n k e r & A s s o c i a t e s C i t y o f S o u t h Mi a m i A u d i t Pr o p o s a l P r e s e n t a t i o n S e p t e m b e r 30 , 2 0 0 1 - 20 0 2 F i r m Q u a l i f i c a t i o n s Go v e r n m e n t a l a n d N o n - P r o f i t A u d i t i n g i s a M a j o r fo c u s o f HB A . 15 Ye a r s o f Co m b i n e d Go v e r n m e n t a l an d No n - P r o f i t Au d i t i n g Ex p e r i e n c e . Al l Pr o f e s s i o n a l S t a f f be c o m e me m b e r s o f th e AI C P A & FI C P A up o n co m p l e t i o n o f th e C P A e x a m . Sp e c i a l i z e d Go v e r n m e n t a l Tr a i n i n g co v e r i n g au d i t i n g to p i c s st r i c t l y re l a t e d to No n - P r o f i t an d Go v e r n m e n t a l Ac c o u n t i n g . Cl i e n t L i s t in c l u d e s : Ci t y of We s t Pa l m Be a c h , Ho u s i n g Fi n a n c e Au t h o r i t y of Mo n r o e Co u n t y , Ci t y of Mi a m i , an d Lo v e to Le a r n E d u c a t i o n a l C e n t e r - A u d i t S t a f f Q u a l i f i c a t i o n s En g a g e m e n t Pa r t n e r - Ro d e r i c k Ha r v e y - A u d i t Ad v i s o r y Co m m i t t e e - C i t y o f Mi a m i - C A F R -C i t y o f H a l l a n d a l e B e a c h - Sc h o o l B o a r d o f Br o w a r d Co u n t y - T h e C i t y o f We s t P a l m B e a c h fi f i n g ! •• • " < * • . : • "v . . 1 A u d i t S t a f f Q u a l i f i c a t i o n s Co n c u r r i n g R e v i e w P a r t n e r -C a r l t o n Br a n k e r - Mi a m i Da d e Co u n t y Au d i t - 3 Ye a r s - Ag e n c y fo r He a l t h Ca r e Ad m i n i s t r a t i o n - C i t y of Mi a m i Pa r k s an d Re c r e a t i o n Di v i s i o n - T h e V i l l a g e o f El Po r t a l A u d i t S t a f f Q u a l i f i c a t i o n s En g a g e m e n t St a f f to b e As s i g n e d to Au d i t - Ja n i n e Kn i g h t - Ma n a g e r Ci t y o f F o r t La u d e r d a l e Sc h o o l Bo a r d o f Br o w a r d Co u n t y Mi a m i Da d e Co u n t y - La t o y a Ca s o n - En g a g e m e n t S e n i o r Pa l m B e a c h C o u n t y S c h o o l B d . • Ja c k s o n Me m o r i a l Ho s p i t a l Mo r e th a n 80 % o f ch a r g e a b l e ho u r s ar e de v o t e d to t h e pu b l i c se c t o r . P u b l i c S e c t o r a n d P r i v a t e S e c t o r Ex p e r i e n c e . A mi n i m u m o f 40 ho u r s pe r ye a r o f co n t i n u i n g p r o f e s s i o n a l e d u c a t i o n i s re q u i r e d . Pa r t i c i p a t i o n i n c o m p l i a n c e a u d i t s , No n - Pr o f i t A u d i t s , S i n g l e A u d i t s , a n d va r i o u s sp e c i a l p r o j e c t s Au d i t Ap p r o a c h Tr a d i t i o n a l A u d i t A p p r o a c h vs . HB A ' s Au d i t Ap p r o a c h Fi n a n c i a l vs . Op e r a t i o n a l Un d e r s t a n d th e Ci t y of So u t h Mi a m i ' s St r a t e g i c Go a l s Un d e r s t a n d Ri s k s th a t th r e a t e n th e or g a n i z a t i o n B e n c h m a r k P r o c e s s P e r f o r m a n c e Ke y Pr o c e s s e s an d Re l a t e d Co m p e t e n c i e s Ov e r a l l pa r t n e r s h i p wi t h th e Ci t y of So u t h Mi a m i HB A ' s Au d i t A p p r o a c h T O P L E V E L A N A L Y S I S - E x t e r n a l F o r c e s , K e y Bu s i n e s s Ri s k , an d De p a r t m e n t a l R i s k D I V I S I O N / D E P A R T M E N T A L R E V I E W - Ke y Pr o c e s s e s , Po l i c y Pr o c e s s e s , Op e r a t i n g Pr o c e s s e s , an d Re s o u r c e Ma n a g e m e n t Pr o c e s s e s R I S K A S S E S S M E N T - Ke y Bu s i n e s s Ri s k an d fa c t o r s to mi t i g a t e su c h ri s k . - HB A ' s Au d i t A p p r o a c h D E P A R T M E N T A L & O P E R A T I O N A L M E A S U R E M E N T S - Co n c e n t r a t e o n ri s k ar e a s , su b s t a n t i v e au d i t pr o c e d u r e s , ac t u a l pe r f o r m a n c e vs . bu d g e t e d pe r f o r m a n c e , et c . R E C O M M E N D E D P E R F O R M A N C E I M P R O V E M E N T S HB A ' s Au d i t A p p r o a c h A u d i t P r e f o r m e d i n a c c o r d a n c e w i t h G A S , th e Si n g l e Au d i t A c t an d , & OM B A- 1 3 3 I n t e r n a l C o n t r o l R e v i e w s Bi - w e e k l y me e t i n g s Ma n a g e m e n t Le t t e r Re p o r t s Sc h e d u l e o f Fi n d i n g s a n d Q u e s t i o n e d C o s t Re p o r t wi t h op i n i o n on co m p l i a n c e wi t h la w s an d re g u l a t i o n s G A S B N o . 3 4 "T h e m o s t si g n i f i c a n t ch a n g e in t h e hi s t o r y o f go v e r n m e n t a l ac c o u n t i n g . . .a dr a m a t i c sh i f t in th e wa y St a t e an d Lo c a l go v e r n m e n t s pr e s e n t fi n a n c i a l in f o r m a t i o n to th e pu b l i c . " - T o m A l l e n , C h a i r m a n o f G A S B City of South Miami,Florida Presentation for the Audit Firm Selection Committee November 29,2001 Rodriguez,Trueba &Company Certified Public Accountants,PA Agenda Introduction About RT&C -General Experience -Firm Structure Governmental Audit Experience Qualifications of Individuals Assigned to the Audit Certificate of Achievement in Financial Reporting Understanding of City's Requirements Fees Summary Rodriguez,Trueba &Company CERnriED Public Accountants,PA About Rodriguez,Trueba &Company Organized in 1986 as a professional association in the State of Florida One office located near Miami International Airport All professional staff lives in Miami-Dade County Certified as a minority business in Miami-Dade,Broward, and the State Florida Managed by 2 partners and three directors operating 4 divisions •Juan C.Gonzalez CPA -Managing Director,Director of Business Consulting •Mariano Rodriguez CPA -Partner,Tax Services,Business Consulting •Carlos M.Trueba CPA -Partner,Accounting and Audit •Jarnette G.Rodriguez CPA -Director,Governmental &Non-profit audits •Richard Lackey -Director,Technology Consulting Rodriguez,Trueba &Company Certified Public Accountants,PA Firm Qualifications and Experience RT&C is a professional accounting firm with offices in Miami.Our firm has performed continuous professional accounting services in the South Florida area since 1986.We are members in good standing ofthe American and Florida Institutes of Certified Public Accountants and the Cuban American CPA Association.The firm renders services to private,nonprofit and governmental organizations that represent nearly all facets of the economic spectrum.The following services are provided to the firm's clients: *Comprehensive Accounting Services These services include the full spectrum ofthe accounting practice.They range from account write-up to compilation,review or auditsof financial statements,whichincludeourgovernmentfundedandregulatedclients. *Tax Services These services include the planning for and preparation of our clients'tax returns.Our firm strives tobe alert to possible planning opportunities to maximize tax savings to our clients.We subscribe to various tax services and publications and hold quarterly seminars among ourstaffto discuss taxlaw changes. *Legal Services Division This area of our organization provides services such as business valuations,damage appraisals and overall litigation support.We work closely with attorneys,insurance companies and regulatory agencies to maximize the full use of our services. *Consulting Services These services include design of budgetary and accounting control systems.Our services complement implementation of control structures with management information andreporting systems. Our services are provided to clients in a wide range of industries.We have provided the services referred above to the following: -Nonprofit organizations -State and local government -Governmental agencies -Distributors and wholesalers -Real estate related and construction companies -Insurance companies,agents and other insurance relatedentities -Import/Export companies -Professionals Firm Qualifications and Experience RT&C is structured in the following manner: PIC ACCOUNTING &AUDITING PROFESSIONAL STAFF CLERICAL & ADMINISTRATIVE STAFF -continued- EXECUTIVE COMMITTEE Director ot Business Development PROFESSIONAL STAFF CLERICAL & ADMINISTRATIVE STAFF PIC CONSULTING ! 1 PROFESSIONAL STAFF CLERICAL & ADMINISTRATIVE STAFF The followingisabrief description of our professional classifications: Principals and Directors OurpartnersanddirectorsareCPA'sand all have many yearsofdiversifiedpublicaccounting experience.They have business experience inpublicpracticeandprivateindustry.They are responsible foroverall engagement policy,firm directionandqualitycontrol. Senior Accountants Oursenior accountants have aminimumofsix years ofdiversifiedpublicaccounting experience.They performauditprocedures, supervise staff,review findingsand prepare audit reports.In general seniors have demonstrated,through previous performances,their abilityto handle the in-charge responsibilities. Firm Qualifications and Experience -continued- Staff Accountants Allour senior assistants are graduates from accredited universities withmajor course workin accounting and have achieved above average grades.They assist in performing auditing engagements andcontinueto expand theirskillsthroughjob training and continuing education programs. A breakdown of the firm'stotal personnel by classification follows: Partners/principals 2 Directors 3 Staff 4 Administrative 3 Total employees 15 RT&C's principalsare heavily involved intheir communities,and have vested commitments in Florida.RT&C's commitment is evidenced by the offering of professional services and organizational skillsto governmental agencies and departments in the Tri County Area(Miami-Dade,BrowardandPalm Beach)and throughout the State of Florida. In addition tofinancial audits RT&C offers the following services to Governmental clients: •Administrative and Consulting services to assist clientsin the areas of financialplanningandcontrol,budget systems, organizational structure and personnel administration; •Designand installation of technology systems,including hardware selection,software development,data base design,and communications; •Design of management information and reporting systems; •Bond covenant compliance reviews forelectric,water,sewer,hospital,industrial development and other bonds; •Economy and efficiency studies; •Cost accounting studies,including cost allocationplansin connection withfederalawards; •Development of fund,grant and encumbrance accounting systems. Governmental Audit Experience City of South Miami CRA City of West Miami City of Sweetwater City of Sweetwater Police Officers'Pension Trust City of Miami,Sports and Exhibition Authority Florida Lottery Non Profit Organizations and Other Entities •30 Client Audits in Accordance with Government Audit Standards •10 Single Audit Reports Pension Plans Rodriquez,Trueba &Company Certified Public Accountants,PA Qualifications of Individuals Assigned •Carlos M.Trueba CPA -Audit Engagement Partner •Jarnette G.Rodriguez CPA -Audit Manager •L.Angela Condon -Engagement Senior •Richard Lackey -Director,Technology Consulting Rodriguez,Trueba &Company Certified public Accountants,PA Certificate of Excellence in Financial Reporting CAFR •Introductory Section —Transmittal Letter •Financial Section —Report —Financial Statements —Notes •Statistical Section Checklist &Application Process Rodriguez,Trueba &Company Certified Public Accountants,PA Understanding the City's Audit Requirements RT&C meets all City requirements to conduct the audit Opinion on general purpose financial statements Prepare all required management reports Meet all professional standards in performing the audit Meet all governmental rules and regulations in performing the audit Meet requirements related to errors,irregularities and fraud,if found as a result of our work Prepare,edit and print 50 copies of the CAFR Meet your audit schedule Prepare conditions for compliance with GASB 34 over the next three years. Rodriguez,Trueba &Company Certified Public Accountants,PA Fees -Above and Beyond We believe our fees and hourly rates are competitive Fees are negotiable Above and beyond •We provide personal attention —We try to establish comfortable lines of communication —We take a personal interest in the affairs of the City —We are available at all times,if required •We have friends in Miami-Dade County —Mayor Alex Penelas —Commissioner Rebeca Sosa —Commissioner Joe Martinez Rodriguez,Trueba &Company Certified Public Accountants,PA Summary As a firm,we are qualified,capable,and available to do the work We will provide all the services requested in accordance with the relevant requirements and within the specified time We guarantee that our proposed fees,as finally agreed upon,as well as our hourly rates,will remain unchanged throughout the engagement. We will be sensitive to current economic conditions and offer suggestions throughout the year to promote revenue enhancements and expense reductions Rodriguez,Trueba &Company Certified Public Accountants,PA