Res. No. 239-99-10863RESOLUTION NO.239-99-10863
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI,FLORIDA,RELATING TO FINANCIAL AUDIT
SERVICES,AUTHORIZING THE CITY MANAGER TO NEGOTIATE
AUDIT SERVICE CONTRACT WITH THE FIRM OF RODRIGUEZ,
TRUEBA &CO.FOR THE PURPOSE OF AUDITING CRA FUND
FINANCIAL TRANSACTIONS.
WHEREAS,theCity of SouthMiamiCRAplanadoptedbythe Commissions of theCity
of South Miami and Miami Dade County in1998,requires the City to conduct annual audit of all
financial transactions in the CRA Fund;and
WHEREAS,in October 1998,theCity solicited for audit services bidsand received
responses from four firms;and
WHEREAS,one of the firms that submitted bids at the time was selected to conduct
GeneralFundaudit services fortheCity,andtheCity Administration wishestonegotiatea
contract withone of the runner-up firmsto perform theauditworkfortheCRAFund;and
WHEREAS,the City members of the Audit Review Committee have recommended that
the firm of Rodriguez,Trueba &Co.CPA,PA,perform the audit workfortheCRAFund
NOW,THEREFORE,BE IT RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF SOUTH MIAMI,FLORIDA,THAT:
Section 1.TheCity Manager is authorized to negotiate a one-year financial audit
services contract withthe firm of Rodriguez,Trueba &Co.CPA.PAto audit CRAFundforan
amount notto exceed five thousand dollars ($5,000.00).
Section 2.TheCity Manager is authorized tosignthe service contract withtheoptionto
renew for additional years,ifso desired bytheCity.
Section 3.This resolution shalltake effect immediately upon approval.
PASSEDANDADOPTEDthis 16th dayofNovember,1999.
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM:
'A£^Jk>
CITY ATTORNEY
APPROVE!*^
MAYOR
COMMISSION VOTE:
Mayor Robaina:
Vice Mayor Russell:
Commissioner BAss:
Commissioner BethQl
Commissioner Feliu:
5-0
Yea
Yea
Yea
Yea
Yea
CITY OF SOUTH MIAMI
INTER-OFFICE MEMORANDUM
****************************************************************
To:MayorandCityCommission ^Date:November 12,1999
j?From:Charles D.Scurr /)#//_^Re:AGENDA ITEM #
City Manager //j/^J™Commission Mtng.
Selection of CRA Financial Auditor
********************************************************************
REQUEST
TheattachedresolutionisseekingtheCityCommission'sauthorizationfortheCityManagerto
negotiate aone year contract withthefirm of Rodriguez,Trueba &Co.,CPA,PA,forthe
purpose of providingfinancialauditofCRAFundtransactions,effectiveinthefiscalyearending
September 30,1999,andto provide,atthe City's option,three additional oneyear renewals.
BACKGROUND
Lastyear,asrequestedbytheCityCommission,theCityAdministrationsolicitedproposalsfor
financial audit services bymeans of advertisement intheMiamiHerald.Four firms submitted
proposals totheCityinresponsetothead.Theyareasfollows:
Rodriguez,Trueba &Co.,CPA,P.A.
Rachlin Cohen &Holtz.CPA
Sharpton,Brunson &Co.,P.A.
KPMG Peat Marwick LLP
TheCity Commission approved thefirm of Rachlin Cohen &Holtz,CPA to conduct the audit of
our General Fund.The City planned on selecting one of thethree remaining firmsto conduct the
CRAAudit.TheCitymembers of theAuditReview Committee mettodiscusstheproposals
received fromthe three firms,and,after careful deliberations,recommend thefirm of Rodriguez,
Trueba &Co.,CPA to provide the service.
Approval of thisfirmto conduct theauditwillbringusincompliancewithone of theprovisions
of our CRA plan,which requires annual audit of its financial operations.
Thecost of performingtheservicewillbechargedtotheCRAFund,asprovidedinthecurrent
fiscal year's budget.
RECOMMENDATION
Approvalisrecommended.
STATEMENT RELATIVE TO UNDERSTANDING OF WORK
AND COMMITMENT TO PERFORM WITHIN TIME PERIOD SPECIFIED
BY THE CITY OF SOUTH MIAMI
Rodriguez,Trueba&Company,C.P.A.,P.A.("RT&C")willconductanaudit of the general
purpose financial statements of theCityofSouthMiami,Florida(The"City")inorderto express
anopinionontheirfairpresentationin conformity withgenerallyaccepted accounting principles
("GAAP").Ourauditwillbeperformedtocomplywiththe requirement of FloridaStatute 11.45
andthe City's Municipal Charter.
RT&Cwillprepareallreportsincludingthoseinvolvingsupplementary information,as required
byFloridaStatutes,the Florida AuditorGeneral,GovernmentalAccountingStandardsBoard
AICPAandanysuch other requirementsundergenerally accepted auditing standardsandother
professional standards.
Our audit willbe performed in accordance with:
a.Generally Accepted Auditing Standards assetforthbythe American Institute of
Certified Public Accountants
b.Generally Accepted GovernmentAuditing Standards as promulgated bythe
General Accounting Office
c.Rules of the Auditor General of the State of Florida for form and conduct of local
unit audits
d.Audits of State andLocal Government Units (AICPA Audit Guide Revised)
e.Single Audit ActandOMB Circular A133
Our audit procedures will include areviewand evaluation of the City's internal controlstructure.
Ourauditwillbe planned toincludereportingworkasfollows:
a.Combined and combining financial statements
b.Individual fund financial statements
c.Supplemental schedules
Wewill submit a report tothe Finance Director atthe end of fieldworkidentifyingconditions
observed inthe system of internalaccountingcontrolsthat might be considered forimprovement.
Ourreportwillincludethe condition's effectontheinternal controls andapplicablesuggestion
for corrective actions.
STATEMENT RELATIVE TO UNDERSTANDING OF WORK
AND COMMITMENT TO PERFORM WITHIN TIME PERIOD SPECIFIED
BY THE CITY OF SOUTH MIAMI
-continued-
In theeventthatany irregularities andillegalactsarenoted during the course of ouraudit,we
willmakean immediate writtenreportdetailingourfindingstothe Finance Director,theCity
Manager andtheCity Commission.
The engagement partner aswellasthe Manager/Supervisor andourauditteammemberswillbe
in attendance atall public meetingswhere discussion of the CAFR isatissueintheCity
Commissionoratanyothertimerequestedbythe City's Management orCommission.
Wewillretainallworkingpapersandreportsatourofficeandatourexpense,foraminimum of
five(5)years,unlessthefirmisnotifiedinwritingbytheCity of theneedtoextendtheretention
period.Wewillmakeworking papers available forduplicationoranyother purpose ata
reasonablecharge,uponrequestbytheCity.Also,theworkingpapersshallbemadeavailable
for examination byany approved governmental agency,accounting reviewboard,oranyother
agencysodesignatedbytheCity.IntheeventtheCitydesirestoengageanotherauditfirmin
thefuture,theworkingpaperswillbemadeavailablefor examination orduplication,ata
reasonablecharge,tothe successor auditfirmengagedbytheCity.
WewillassisttheCitywiththe preparation,editingandprinting of atleast50copiesofthe
Comprehensive Annual Financial Report (CAFR).We understand theCity retains therightof
approval ofthe CAFR with regards to general appearance and binding.The CAFR shall contain,
ata minimum,the following statements and schedules:
a.Combined Balance Sheet-all Fund Types and Account Groups
b.Combined Statement of Revenues,Expenditures and Changes inFundBalance-
All Governmental Fund Types and Expendable Trust Funds
c.Statement of Revenue and Expenditures -BudgetandActual (Budgetary Basis)
d.Combined Comparative Statement of Revenues,Expendituresand Changes in
FundEquity-ProprietaryFundTypeandPensionTrustFunds
e.Comparative Statement ofCash Flows -Proprietary FundType Internal Service
Fund
f.All required notedisclosures
g.All necessary combining statements for fund types of which there is more than one
fund
STATEMENT OF UNDERSTANDING OF WORK
AND COMMITMENT TO PERFORM WITHIN TIME PERIOD SPECIFIED
BY THE CITY OF SOUTH MIAMI
-continued-
Withregardtotheaudit schedule weunderstandthatthe City agreestocloseitsbooksand
preparetrialbalancereportsnolaterthanNovember30th of eachyear.Wewillconductthe
audit examination sothat fieldwork willbe completed within sixty (60)daysaftertheCitycloses
its books and prepares thetrial balance reports.
Weagreeto submit copies of adjusting journal entriestotheCityatthecompletion of the
fieldwork.
Wealsoagreeto submit adraft of thefinallettertothe Finance Director nolaterthanFebruary
15theachyearforreviewandcomment.Wewill deliver completed copies of theCAFRtothe
Cityat6130SunsetDrive,SouthMiami,Florida,nolaterthantheend of February eachyear.
Duringourfirstaudit,wewilltrytocomplywiththe City's requestedschedule.Weappreciate
the City's understanding indeviationsfromtheScheduleduringthefirstyear.
ENGAGEMENT PARTNER,MANAGER/SUPERVISOR
Theauditwillbecarriedoutunderthesupervision of CarlosM.Trueba,C.P.A.,RT&C's partner
in charge of accounting and auditing.Mr.Trueba has over twenty (20)years of experience in
auditing state and local governments aswellas nonprofit organizations receiving federalawards
subjecttotherequirements of SingleAuditActandOMBCirculars.
Since 1995,Mr.Trueba has been the engagement partner in audits of the City of WestMiami
andtheCity of Sweetwater.From1986to 1989,Mr.Truebawasthe concurring auditprincipal
inall of hisformerfirm'sstateandlocal government audits.The clients included the City of
Sweetwater,City of West Miami,and the Dade County School Board (a joint venture with
Coopers&Lybrand).
Mr.Trueba's responsibilities intheseengagementsincluded direct participation intheplanning
of thework,review of all audit workpapers andfinalreview of the government's generalpurpose
financial statements.
From 1986 through 1998,Mr.Trueba hasbeenthe engagement principal inall of thefirm's
government and nonprofit auditclients.A significant portion of these clients receivefederal
funds subject to compliance requirements relatedto Circular A-133 issued bytheOffice of
Management and Budget.
Asengagementprincipal,hisresponsibilitiesincludedtheoverallplanningandsupervisionofthe
engagement,communicationswithclientpersonnelrelatedto significant auditmatters,and
overall supervision fortheissuance of thegeneral purpose financial statements andrelated
auditor's reports.
The rest of the audit team consist of the following personnel:
Mariano J.Rodriguez -Concurring Partner
Jarnette Rodriguez -Manager/Supervisor
TheconcurringpartnerintheengagementwillbeMarianoJ.Rodriguez,CPA,RT&C's
managingpartneraswellaspartnerincharge of consultingservices.Mr.Rodriguezhasover
seventeen(17)yearsofpublicaccounting experience and3yearswithanationalbanking
organization.
Mr.Rodriguez'sexperiencerangesfromperformingoverheadauditsforconsultantsdoingwork
withtheFloridaDepartment of Transportationandsupervising staff of 103asManagerinthe
systemanalysisofAT&TandNewJerseyBell divestiture.Lastly,heheadedthe internal audit
department of afinancialinstitutionwithresponsibilityover$4 billion worth of assets.
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ENGAGEMENT PARTNER,MANAGER/SUPERVISOR
-continued-
Mr.Mariano Rodriguez's responsibilities as concurring partner inthis engagement willbeto
reviewand approve thefinalauditplan,review of audit workpapers supporting conclusions on
significant account balances andconcurringreview of thefinaldraft of thegeneralpurpose
financial statements and the related auditors'report.
Since June 1996,Carlos Trueba and Mariano Rodriguez have completed over 60hours of
continuing education in accounting and auditing for governmental agencies,including over40
hoursin accounting and auditing forstateandlocal governments.
Ms.Jamette Rodriguez will bethe Senior Staff in charge of the engagement.SheisaCPAinthe
State of Georgia.Ms.Rodriguez graduatedfrom Florida International University inSeptember,
1993 with a degree in accounting andis currently completing her Masters in Accounting from
Florida International University.Shewillbe responsible for carrying outthefieldworkin
accordance with the audit plan,andwillalso supervise the Associate Staff assigned tothe
engagement.Ms.Rodriguez is RT&C's staff in charge of all engagements relatedto
governmental compliance.Ms.Rodriguezhas completed over30hours of continuingeducation
in auditing under Government Audit Standards and Compliance Auditing under Circular A-133.
RT&C currently auditsseveralclientsrequiringreportsunderOMBCircular A-133 andover20
clients subject toauditsinaccordancewith Government Audit Standards issuedbythe
Comptroller General.Thefirmalsoauditsmortgagebrokersand bankers subjecttocompliance
withU.S.HUDand FHA,premium finance companies and health maintenance organizations
subjectto compliance totheTreasurer of theState of Florida,Department of Insurance,and
engineeringfirmssubjecttocomplianceundercontractswiththeFloridaDepartment of
Transportation.
Staff assigned tothis engagement willwork continuously in the engagement andnotwork
concurrently in other audit engagementsduringtheaudit planning,fieldworkandreport
preparation.
RT&C's management willcommittocontinuous monitoring and supervision assuringthe
maintenance of the highest qualitycontrolstandards,achieving amostefficientand
comprehensiveauditeffort.Thepartnerinchargewillvisitwiththeauditteamatleastona
weeklybasistoreviewtheworkperformed,resolveanyproblemsencounteredandtoascertain
that target dates are being met.
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sawasara
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RESUME
CARLOS M.TRUEBA,CPA
Engagement Partner
Education:Graduated1977fromFloridaIntemationalUniversitywithaBachelorsof
BusinessAdministrationmajoringinaccountingand finance.Attended
graduate coursesinaccountingthrough 1983.
Experience:TwentyOne (21)years of experienceinpublicaccounting,including (18)in
supervisory positions(managerand partner/principal)relatedtoaudit
engagements.Ten(10)yearsas senior audit partner in charge of audits of
nonprofitorganizationsandconcurringpartnerinStateandLocalGovernment
clients.
Mr.Trueba istheengagementpartnerintheaudits of theCity of WestMiami
andtheCity of Sweetwater.Hewasthe concurring partnerintheaudits of the
City of Sweetwater forfiscalyears1987and1988andtheCity of WestMiami
for the years 1986,1987and1988.
Achievements:Certified Public Accountant in the State of Florida since 1980.Treasurer of
various charitable organizations including American Cancer Societyandthe
Dade County Special Olympics.Past President of Kiwanis Club of Miami-
Latin,and of The Learning Experience,a school for children withDown's
Syndrome.
15
RESUME
MARIANO RODRIGUEZ,CPA
Concurring Partner
Education:Graduated1980fromFloridaInternationalUniversitywithaBachelorsof
BusinessAdministrationmajoringinaccountingandfinance.
Experience:Sixteen(16)yearsof experience inpublic accounting,includingeleven (11)
yearsassenior consulting partnerforRT&C.Heavy experience in accounting
andauditingforDepartment of Transportationcontractorsandclientsinthe
service industry.Two(2)yearsas Chief Internal Auditor foranational
bankinginstitution.Mr.Rodriguezwasthemanagerincharge of theATT
divestiturewhen working for Coopers &Lybrand,an international accounting
firm.
Achievements:Certified Public Accountant in the State of Florida since 1981.Chartered Bank
Auditor since1986.Active member of various charitable organizations,
including Camino,apre-marriage counseling program establishedbythe
Archdiocese of Miami.
Author and lecturer in small business consulting matters.
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RESUME
JARNETTE RODRIGUEZ,CPA
Engagement Manager/Supervisor
Education:Graduated1993fromFloridaInternationalUniversitywithaBachelorsof
Business Administration majoring in accounting and management.
Experience:Five(5)years of experience in public accounting,with emphasis in accounting
andauditingforclients regulated by federal andstate governmental agencies.
Ms.Rodriguez hasavast experience intheareasof compliance testing and
reportingunderthe Single Audit Act of 1996.Ms.Rodriguez isthe senior in
charge of theaudits of theCity of WestMiamiandtheCity of Sweetwater.
Achievements:Has successfully passedtheUniform National CPA exam.Activememberof
various charitable organizations.CandidateforaMaster's Degree in
Accounting fromFloridaIntemational University.Sheisamember of The
American Insititue of Certified Public Accountants.
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EXPERIENCE IN GOVERNMENT
RT&CisaprofessionalaccountingfirmwithofficesinMiami.Ourfirmhasperformed
continuous professional accounting services inthe South Florida areasince1986.Weare
members in good standing of the American and Florida Institutes of Certified Public Accountants
andtheCubanAmericanCPAAssociation.Thefirmrendersservicestoprivate,nonprofitand
governmental organizations whorepresentnearlyallfacets of theeconomicspectrum.The
following services are provided tothefirm's clients:
*Comprehensive Accounting Services
Theseservicesincludethefullspectrum of theaccountingpractice.Theyrangefrom
account write-up to compilation,revieworaudits of financial statements,which include
our government fundedand regulated clients.
*Tax Services
These services includetheplanningforand preparation of ourclients'taxreturns.Our
firm strives tobealerttopossibleplanning opportunities to maximize taxsavingstoour
clients.We subscribe tovarioustaxservicesand publications andhold quarterly seminars
among our staff to discuss taxlawchanges.
*Legal Services Division
Thisarea of ourorganizationprovidesservicessuchas business valuations,damage
appraisals and overall litigation support.Wework closely withattorneys,insurance
companies and regulatory agencies to maximize thefulluse 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 and
reporting systems.
Our services are provided toclientsinawiderange of industries.Wehave provided theservices
referred above tothe following:
-Nonprofit organizations
-State and local government
-Governmental agencies
-Manufacturers
-Distributors and wholesalers
-Retailers
-Real estate related and construction companies
-Insurance companies,agentsandother insurance related entities
-Import/Export companies
-Professionals
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EXPERIENCE IN GOVERNMENT
-continued-
RT&C is structured in the following manner:
••—•,
!
EXECUTIVE
COMMITTEE
Outoor ol Biamnt
PIC ACCOUNTING
s.AUDITING PIC TAXES PIC CONSULTING
PROFESSIONAL
STAFF
CLERICAL &
ADMINISTRATIVE
STAFF
PROFESSIONAL
STAFF -
CLERICAL &
ADMINISTRATIVE
STAFF
PROFESSIONAL '
STAFF
5
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CLERICAL S
ADMINISTRATIVE
STAFF
Thefollowingisa brief description of ourprofessional classifications:
Principals
Our partners areCPA'sandall have more than fifteen (15)years of diversified public accounting
experience.The partners havea diversified business experience inpublic practice and private
industry.Theyare responsible for overall engagement policy,firm direction andquality control.
Senior Accountants
Oursenioraccountantshaveaminimumofthreeyears of diversifiedpublic accounting
experience.They perform audit procedures,supervise staff,review findings and prepare audit
reports.In general seniors have demonstrated,through previous performances,their ability to
handlethe in-charge responsibilities.
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EXPERIENCE IN GOVERNMENT
-continued-
Staff Accountants
Allour senior assistants aregraduatesfromaccredited universities with major courseworkin
accounting and have achieved above average grades.They assist in performing auditing
engagements and continue toexpandtheirskills through job training and continuing education
programs.
A breakdown of thefirm's total personnel by classification follows:
Partners and directors 2
Seniors 2
Staff 4
Administrative 3.
Total employees 11
RT&C'sprincipalsareheavilyinvolvedintheircommunities,andhavevestedcommitmentsin
Florida.RT&C's commitment isevidencedbythe offering of professional servicesand
organizationalskillstogovernmentalagenciesanddepartmentsintheTriCountyArea(Dade,
Broward and Palm Beach)and throughout theState of Florida.
Thefollowing describes RT&C'sexpertisein performing accounting servicesforgovernmental
entities.
1.RT&Cauditsthe City of WestMiamiandtheCity of Sweetwater.TheseCitiesarevery
similar in size and budget totheCity of South Miami.
2.RT&Cauditsanumber of nonprofitorganizationsreceivingfederalfinancial assistance.
Theseauditsare subject totherequirementssetforthinOMB Circular A-133.
3.RT&C'sprincipalincharge of accounting andauditinghasworkedinlarge governmental
auditsinasupervisorycapacity.Additionallyhewasincharge of audits of variousstateand
local government unitsaswellasSection8Projects of Metropolitan Dade CountyHUD.
4.RT&C's principalinchargeof consulting services in responsible forallour engagements with
theFlorida Department of Transportation.The engagements include the supervision and
review of alloverheadcertificationauditsrequiredbyFloridaStatutes.Heisacharterbank
auditor andhis experience includes Audit Vice President ofa$20billion financial institution.
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REFERENCES
Rodriguez,Trueba &Co.and its partners have been successfully performing audits of entities
receiving public support for many years.The following information summarizes the
requirements of the Request for Proposal (R.F.P.).
a.Engagement:
b.Budget:
c.Total staff hours:
d.Scope of work:
e.Date:
f.Engagement Partners:
g.ClientContact:
a.Engagement:
b.Budget:
c.Total staff hours:
d.Scope of work:
e.Date:
City of West Miami
$3 Million General Fund
250 Engagement hours in total*0"S3>
Rodriguez,Trueba &Co.performs an audit ofthe client's
financial statements in accordance with GAS andOMB Circular
A-133.We also prepare reports on client compliance with State
of Florida,Office of the Comptroller General
Our engagement takes place from August 1998 to January 1999
Audit:Carlos M.Trueba,C.P.A.
Engagement:CarlosM.Trueba,C.P.A.
Concurring Review:Mariano J.Rodriguez,C.P.A.
Yolanda Aguilar -City Manager
Hon.RebeccaSosa-Mayor-(305)266-1122
***
City of Sweetwater
$4 Million General Fund
300Engagementhoursintotal
Rodriguez,Trueba &Co.performs an audit of the client's
financial statementsinaccordancewithGASandOMB Circular
A-133.We also prepare reports on client compliance with State
of Florida,Office of the Comptroller General
Our work was performed from September,1998 to February 28,
1999
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REFERENCES
-continued-
f.Engagement Partners:Audit:CarlosM.Trueba,C.P.A.
Engagement:Carlos M.Trueba,C.P.A.
Concurring Review:MarianoJ.Rodriguez,C.P.A.
g.ClientContact:Michael Lavin -FinanceDirector (305)221-0411
Hon.Jose "Pepe"Diaz-President,City Council
Hon.Gloria Bango -Mayor
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