ALBANI, CABALLERO & COMPANY
PROPOSAL FOR EXTERNAL AUDIT SERVICES
FOR THE
FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 2013 AND 2014
WITH A ONE YEAR OPTION FOR 2015
RFP # FN-2013-05
June 5, 2013 at 10:00 A.M.
Attention: Maria M. Menendez, CMC, City Clerk
Alberni Caballero & Company, L.L.P.
4649 Ponce de Leon Blvd, Suite 404, Coral Gables, FL 33146
Telephone: (305) 662-7272 Fax: (305) 662-4266
FEI# 55-0912340 CPA License#: AD64536
Contact Person: Andrew S. Fierman, CPA - Partner andrew@acc-cpa.com
TABLE OF CONTENTS
TRANSMITTAL LETTER 1-4
TECHNICAL PROPOSAL
SECTION I TECHNICAL PROPOSAL
1. General Information 5
2. Independence 5
3. License to Practice in the State of Florida 6
4. Firm Qualifications and Experience 6-15
5. Prior Engagements with the City of South Miami 16
6. Similar Engagements with Other Government Entities 16-17
7. Specific Audit Approach 18-27
8. Identification of Anticipated Potential Audit Problems 28
9. Required Forms and Affidavits 28
SECTION II PRICE PROPOSAL 29-30
CONCLUSION 31
APPENDICES
A Letters of Recommendation 32-39
B
Licenses to Practice in the State of Florida 40-44
C
Insurance 45-46
D
Peer Review Report 47-50
E
F
Price Proposal Sheet 51-52
Required Forms 53
1. Public Entity Crimes and Conflicts of Interest
2. Drug Free Workplace
3. No Conflict of Interest/Non-Collusion Certification
4. Acknowledgement of Conformance with OSHA Standards
5. Related Parties Transaction Verification Form
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June 5, 2013
Maria M. Menendez, CMC, City Clerk
City of South Miami
6130 Sunset Drive
South Miami, FL 33143
Re: REQUEST PROPOSAL FOR EXTERNAL AUDIT SERVICES (RFP #FN-2013-5)
Alberni Caballero & Company LLP (AC&C) appreciates this opportunity to respond to your
Request for Proposal for External Audit Services for the City of South Miami (the “City”). The
firm consists of Certified Public Accountants and professionals dedicated to serving the public
sector. AC&C’s partners have been providing professional CPA services throughout Florida for
the past 30 years and are members of the American Institute of Certified Public Accountants and
the Florida Institute of Certified Public Accountants. Alberni Caballero & Company, L.L.P. is
also a member of the AICPA’s Government Audit Quality Center and Employee Benefit Plan
Audit Quality Center.
We are uniquely qualified to perform Independent Auditing Services for the City because:
Our management team has performed numerous audits, and accounting services which
include the following:
Municipality Professional services performed
City of South Miami (CAFR)
Miami Shores Village ( CAFR)
City of Hialeah ( CAFR)
Financial, Utility Fund and Single Audit
Financial, Utility Funds, Pension Plans, GOB and Single Audit
Financial, Utility Funds, Pension Plan, GOB, TCT and Single Audit
City of Hialeah Gardens
City of Miami Springs (CAFR)
Town of Cutler Bay (CAFR)
Financial, Utility Funds, Pension Plan, GOB and Single Audit
Financial, Utility Funds, GOB and Single Audits
Financial, Utility Fund, GOB, TCT and Single Audit
Village of Biscayne Park (CAFR)
Village of El Portal
Financial, GOB and Single Audit
Financial, GOB and Single Audit
Town of Briny Breezes
City of Doral (CAFR)
Performing Arts Center Authority Housing Finance
Financial Audit
Financial, Utility Fund and Single Audit
Financial Audit
4649 PONCE DE LEON BLVD.
SUITE 404
CORAL GABLES, FL 33146
TEL: 305-662-7272
FAX: 305-662-4266
ACC-CPA.COM
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Community Redevelopment Agencies
City of South Miami Community Redevelopment Agency– financial audit
Town of Lake Park Community Redevelopment Agency– consulting
Our team, based out of our Coral Gables office offers the following advantages:
Experienced Personnel On-The-Job: Our Management Team’s CPAs average:
over 20 years of professional practice in the governmental audit field;
over 10 years working together as a team
Knowledgeable Team: Because our team members are devoted to the public sector, we are
experts in the intricacies of governmental accounting and the unique issues affecting your
City.
Management Involvement: Unlike most firms:
the professionals assigned to your engagement focus the majority of their time working
exclusively with governmental organizations
experienced Firm Management (Senior Management) will dedicate 100 percent of
their time to your engagement
because of our experience, we will use your staff’s time efficiently and serve as a
valuable resource for your organization: your personnel will not waste time “training
our personnel”
Please note the Firms are assigning the following “Key” Engagement Team Members to
your Engagement:
1 Quality Control Partner
1 Engagement Partner
1 Manager
1 Supervisor
1 Staff Accountant
5 Total Key Team Members
We humbly ask you to compare the expertise of our “Key” Engagement Team to our peer
competition assigned teams. We are confident you will not see another firm assigning our
level of experience to your engagement.
GFOA CERTIFICATE OF ACHIEVEMENT reporting/submittal requirements:
AC&C is proud to have assisted all of the Municipalities listed above, which are presently
participating in the GFOA Certificate of Achievement for Excellence in Financial Reporting
Program (CAFR), qualify for this award. Additionally, the Engagement Partner and
Manager participate in the GFOA’s CAFR review program.
Smooth Transition: transition will be smooth, with minimal disruption of the City’s staff
and operations. We can guarantee this due to our engagement team’s governmental audit
experience.
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On-Site Decision Makers: Unlike most other firms, our partners are on-site during the
engagement. This ensures that any audit issues will be resolved efficiently and timely since
the key individuals of the engagement will be on-site during the audit.
Satisfied Clients: We have included references for several cities and have also included
several letters of recommendations.
Immediate Service Responsiveness: Accessible to clients regarding ANY comments,
questions, or concerns.
Timely Delivery of Services: We understand the importance of completing the audit and
issuing the audited financial statements in a timely manner and will work closely with you
and your staff to meet and exceed your expectations.
Fees: We recognize that engaging and accounting firm is an important investment of the
City. You can expect that we are competitively priced and that your investment in us will
add value to your City.
Take a “Get the Job Done” approach to our Engagements:
We will dedicate as many resources and people as necessary to complete the engagement
within the specified time frame.
Based on our understanding of your expectations and the requirements set forth in your RFP, we
will summarize the scope of our proposed services and our audit approach. We will demonstrate
how our approach surpasses other firms and exceeds the City’s expectations.
We will perform an annual audit of the basic financial statements of the City of South Miami for
the fiscal year ending September 30, 2013 and September 30, 2014, with the option to extend
one additional year 2015 in order to express an opinion on the fairness with which they present
net assets and changes in net assets in conformity with accounting principles generally accepted
in the United States of America, and an audit to determine whether operations are properly
conducted in accordance with legal, regulatory requirements, applicable OMB standards, Federal
Single Audit Act and the Florida Single Audit Act, (if applicable). We will perform limited
procedures on the schedule of expenditures of federal awards as required by U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit
Organizations, and supporting schedules and verify that any outstanding audit findings from
prior years has been cleared, (if applicable).
We will also issue separate financial statements for the South Miami Pension Plan and the South
Miami Community Redevelopment Agency.
We commit to perform the work within the time period described in your request for
proposal.
The firm will be involved throughout the entire year, by providing assistance in resolving issues
and informing the City of new evolving issues and related matters of importance.
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This proposal is a firm and irrevocable offer for ninety (90) days. Andrew S. Fierman, CPA, a
Partner from our Coral Gables office, is authorized to make representations for and to bind the
firm. He can be reached at (786) 390-5831 or (305) 662-7272. His e-mail address is
Andrew@acc-cpa.com. Please do not hesitate to call if you have any questions about the
information provided in this proposal. We thank you for considering our firm’s qualifications
and experience and look forward to serving you.
Very truly yours,
Andrew S. Fierman, CPA - Partner
Alberni Caballero & Company, L.L.P.
FEI# 55-0912340
CPA License#: AD64536
SECTION I – TECHNICAL PROPOSAL
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1. General Information
Alberni Caballero & Company, L.L.P. (AC&C) is a Certified Public Accounting firm of
professionals that work together on a continual basis with the main focus of serving the public
sector. AC&C is a professional limited liability partnership with offices in Coral Gables and
Miramar, which provides comprehensive financial and compliance auditing, attestation and
accounting, tax and other management consulting services. AC&C’s partners have served the
South Florida area for over 30 years.
Our industry areas of specialization include:
• Governmental Organizations
• Public Housing Agencies
• Non Profit Organizations
• Local Government Retirement Plans
• Mortgage Banking
AC&C’s philosophy is to provide our clients with the same high level of service they would expect
from a large national firm, but with the personal attention of a small local firm. All of our audit
clients have direct access to our partners and we have committed to have our partners involved
throughout all phases of the audit. In other words, our partners are in the field during the audit and
all the decision making is on site.
Our professional staff is prepared and fully qualified to help you determine your realistic present
and future goals, and assist you in reaching them. We combine invaluable experience gained at
some of the most highly regarded international accounting firms, with the kind of personal service
these firms can seldom provide.
Every member of our professional staff at the firm is here because they combine outstanding
accounting qualifications with proven communication skills and depth of character. Our
governmental audit partners and staff are actively involved with recognized standard-setting
organizations at the national level (GFOA), state level (FGFOA) and the local level ( SFGFOA
and League of Cities). The firm is also a member of the AICPA Governmental Audit Quality
Center, which holds our firm to a higher standard of quality.
2. Independence
Alberni Caballero & Company, LLP affirms that we meet the independence requirements of our
professional standards, Activities and Functions published by the U.S. General Accounting Office,
GAS or any subsequent amendments or superseding revisions. As defined by standards generally
accepted in the United States of America, we are independent of the City. Except for the audit
services described below, we further certify that Alberni Caballero & Company, LLP, its partners
and employees are independent of the City, have not performed any professional services for the
City and have no conflict of interest. We will give written notice to the City of any professional
relationships entered into during the period of this engagement.
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The firm was the auditor for the City of South Miami for the fiscal years ending September 30,
2004 to 2006.
3. License to Practice in the State of Florida
AC&C is properly registered/licensed State of Florida professional limited liability partnership.
All assigned key professional staff are properly registered/licensed to practice public accounting in
the State of Florida.
4. Firm Qualifications and Experience
The following chart reflects our current organizational structure:
TOTAL
PROFESSIONAL
STAFF
TOTAL
CPA’S
PUBLIC
SECTOR
STAFF
Partners 6 6 4
Managers/Supervisor/Seniors 4 2 3
Staff accountants 5 0 3
Other and Administrative 3 0 0
Total 18 8 10
(*) Total of three CPA’s assigned to the City’s Engagement, two Partners, one Manager, one
Supervisor and staff accountant as required
Audit Team Members % Time Spent on Audit
Nestor Caballero, CPA, CGAP (Quality Control Partner) 50%
Andrew S. Fierman, CPA (Engagement Partner ) 50%
John-Paul Madariaga, CPA (Manager) 75%
Maurice Lugo (Supervisor ) 100%
To be decided (Staff Accountant) 100%
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Report of Peer Review
Alberni Caballero & Company, L.L.P.’s peer review report is presented as APPENDIX D. PEER REVIEW REPORT.
The review included review of specific governmental engagements.
Participation in Quality Control Review Program
Alberni Caballero & Company, L.L.P. is a member of the Government Audit Quality Center and as such must comply
with a comprehensive quality control process specific to governmental engagements.
Results of State and Federal Reviews
Alberni Caballero & Company, L.L.P. has never been subjected to a federal or state desk review of any of its
workpapers.
Disciplinary Actions
Neither Alberni Caballero & Company, L.L.P. nor any of its partners have ever been involved in any disciplinary action
by a regulatory agency.
Management Team of CPAs’ & Years of Governmental Experience
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Nestor Caballero, CPA, MST, CGAP (Quality Control )
20 Years of Total Governmental Audit and Not-for-Profit Experience
Andrew S. Fierman, CPA (Engagement Partner)
11 Years of Total Governmental Audit and Not-for-Profit Experience
John-Paul Madariaga, CPA (Manager)
8 Years of Total Governmental Audit and Not-for-Profit Experience
Maurice Lugo, (Supervisor)
7 Year of Total Governmental Audit and Not-for-Profit Experience
Experience In Governmental Engagements
The engagement team that will serve the City is composed of individuals who understand
governmental entities and possess the technical skills and experience necessary to deliver quality
audit services. Our team will include One Quality Control Partner, One Engagement Partner, One
Manager, One Supervisor and accounting staff as needed.
These professionals have a wide variety of experience in providing auditing, accounting and
advisory services to governmental entities. In addition to their experience and knowledge, the
members of the engagement team have the functional and technical skills to ensure the
performance and completion of a comprehensive engagement.
Our senior engagement team of CPAs averages over 20 years of professional practice, with 10 in
the government audit field and the performance of financial and managerial services for
governmental entities. Unlike other firms’ personnel, these individuals spend most of their time
working with governmental and public sector agencies. This means they will not be wasting your
time asking irrelevant questions and indeed, will be a fertile and beneficial resource to your
organization.
Management Team
The management team who will serve the City is composed of individuals who:
are licensed CPAs;
possess a comprehensive understanding of governmental entities;
are highly experienced in working with a variety of public sector clients;
demonstrate the technical skills necessary to deliver quality financial and managerial
services; and
average in excess of 10 years of professional practice in governmental and not-for-profit
auditing and accounting.
Quality Control Partner- The Quality Control Partner will be responsible for the quality control,
supervision and confidentiality of information of the engagement and will be available to members
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of the engagement team and management of the City as a high-level technical resource. In
addition, the Quality Control Partner will also complete the following:
• performing an overriding review of all deliverables;
• resolving technical accounting and reporting issues;
• reviewing and approving reports, management letters, and other engagement products; and
• attending meetings and discussions with key management personnel.
Nestor Caballero, CPA, MST, CGAP is the managing partner of the Firm and will be the
Quality Control Partner and a designated “KEY” employee. Mr. Caballero has more than 20 years
experience in the in the governmental accounting and auditing sector and is also familiar with the
City’s operation. As the quality control partner, he is responsible for reviewing the form and
content of the audit workpapers and the auditors’ report as well as the review of the City’s
financial statements in accordance with Firm and professional standards.
Engagement Partner- An Engagement Partner will be assigned to work closely with the Quality
Control Partner. The Engagement Partner has direct responsibility for engagement policy,
direction, supervision, security and communication with the City’s personnel. He will also ensure
that the deliverables and all other reports are prepared in accordance with professional standards
and firm policy.
He will be responsible for all phases of the engagement and will be:
• coordinating all services with the City;
• directing the development of the overall engagement approach and plan;
• supervising staff; planning the engagement;
• preparing or modifying project plans, as needed;
• evaluating internal control and assessing risk;
• reviewing work product for compliance with the organization’s requirements and
completeness;
• communicating with the City and the progress of the engagement; and
• reviewing deliverables and all reports issued by the firm for accuracy and completeness;
• and that they are prepared in accordance with professional standards and firm policy;
• leading meetings and discussions with key management personnel.
Andrew S. Fierman, CPA will be the Engagement Partner and a designated “KEY” employee.
Andrew was selected for his managerial, supervising and technical capabilities, more specifically
for his experience in audits of governmental agencies. He has performed governmental audits for
the past 11 years.
Manager- The Manager will be assigned full time and will work closely with the Engagement
Partner. He will be in charge of the audit fieldwork and will be present at all times during the
engagement to supervise the engagement team.
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He will be responsible for all phases of the engagement and he will be:
assisting in directing the development of the overall engagement approach and plan;
supervising staff;
assisting in planning the engagement;
preparing or modifying project plans, as needed;
evaluating internal control and assessing risk;
reviewing work product for compliance with the Trust’s requirements and completeness;
communicating with the Trust and the partners the progress of the engagement; and
reviewing deliverables and all reports issued by the firm for accuracy and completeness;
and that they are prepared in accordance with professional standards and firm policy;
John-Paul Madariaga, CPA will be the Manager and are designated “KEY” employee. Mr.
Madariaga was selected for his experience with governmental and non-profit engagements.
Supervisor - A Supervisor will be assigned full-time to the engagement. The Supervisor will be
responsible for the overall performance of the work in the field and assisting in the actual
performance of the engagement.
Maurice Lugo will be the Supervisor and designated “KEY” employee. Mr. Lugo was selected
for his extensive knowledge and experience in governmental and nonprofit auditing and
accounting. He will devote 100% of his time to the completion of the work.
Staff Accountants- Staff accountants will be utilized as required by the Engagement Partner and
Manager. They perform less complex audit procedures under the supervision of the Engagement
Partner, the Manager and Supervisor.
The firm’s audit team who will serve the City is composed of individuals who understand
governmental accounting and possess the technical skills and experience necessary to deliver
quality audit services. Our audit team will include THREE Certified Public Accountants, with
Two Partners, One Manager, One Supervisor and Staff as needed.
We humbly ask you to compare the level of experience and expertise we have assigned to your
engagement to the other firms submitting proposals. Compare the experience of personnel
assigned by those firms FULL-TIME (on-site) to OURS.
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 and GAO.
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Nestor Caballero, CPA, MST, CGAP Quality Control Partner
Professional Experience
Nestor has 20 years of experience serving governmental and not-for-profit clients. He has extensive experience in
analyzing and evaluating internal controls over all major financial processes of governmental and not-for-profit
entities, and in auditing federal and state grants in accordance with OMB Circular A-133 and Rules of the Florida
Auditor General, respectively. A select list of Nestor’s governmental and not-for-profit clients includes the following:
City of Hialeah Gardens, Florida
City of Doral, Florida
City of Tamarac, Florida
City of Oakland Park, Florida
City of South Miami, Florida
Town of Miami Lakes, Florida
Town of Southwest Ranches, Florida
Town of Lauderdale By The Seas, Florida
City of Hialeah, Florida
City of North Miami, Florida
City of Pembroke Pines, Florida
City of Homestead, Florida
Broward Center of the Performing Arts
City of Hialeah Education Academy, Inc.
ASPIRA North Youth Leadership Charter School
ASPIRA South Youth Leadership Charter School
City of Pembroke East Campus Elementary and Middle
Charter City
City of Pembroke West Campus Elementary and Middle
Charter City
Downtown Miami Charter School
Homestead Housing Authority
Punta Gorda Housing Authority
West Palm Beach Housing Authority
Virgin Islands Housing Authority
Riviera Beach Housing Authority
Hialeah Housing Authority
Venice Housing Authority
Orlando Housing Authority
Tampa Housing Authority
Palm Beach County Housing Authority
Lee County Housing Authority
Winter Park housing Authority
Housing Finance Authority of Miami Dade
The Sundari Foundation, Inc.
The Lotus Endowment Fund, Inc.
Miami Bethany Community Services, Inc.
The Herald Charities, Inc.
ASPIRA of Florida, Inc.
Food for the Poor, Inc.
Village of El Portal, Florida
Town of Briny Breezes, Florida
Professional and Business Affiliations
AICPA Governmental Audit Quality Center- Designated
Audit Partner
AICPA Employee Benefit Plan Audit Quality Center-
Designated Audit Partner
Member, AICPA
Member, Florida Institute of Certified Public Accountants
Member, Past Member – FICPA, Accounting Principles
and Auditing Standards Committee
Member, Government Finance Officers Association
Member, Special Review Committee -Government
Finance Officers Association
Member, Florida Government Finance Officers
(Small Governments Committee)
Member, Dade/Broward Government Finance
Officers Association
President-Elect, Cuban American Certified Public
Accountants Association
Associate Member, Florida Association of Special
Districts
Education
Master of Taxation, Florida International University Bachelor of Accounting, Florida International
University
Continuing Professional Education
Total CPE hours for the last two years is 124, of which 30 meet the Yellow Book (GAS) requirements
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Andrew S. Fierman, CPA Engagement Partner
Professional Experience
Andrew is a Partner in our firm’s audit department and brings over 11 years of audit experience. He provides
guidance on financial reporting, accounting, and auditing matters including Federal and Florida Single Audits, and
consulting services for all types of entities including governmental entities. These consulting services range from
internal control reviews to audit preparedness services to comprehensive annual financial report (CAFR) guidance
and preparation.
Andrew’s areas of expertise are Financial Audits, Federal Single Audits, Florida Single Audits, Employee Benefit Plan
Audits, Agreed upon procedures, Internal Control Reviews and Consulting Services. In addition, he conducts Peer Reviews
for small to mid-size accounting firms.
Andrew’s experience includes serving the following governmental and not-for-profit entities as a manager or in-charge:
Town of South Palm Beach Village of Key Biscayne
Miami Shores Village City of North Miami
City of North Miami Beach Bal Harbour Village
Town of Surfside Town of Bay Harbor Islands
City of Miramar Village of Palmetto Bay
Indian Creek Village City of Greenacres
City of West Palm Beach Town of Southwest Ranches
Miami-Dade Water and Sewer Dept. Florida Keys Aqueduct Authority
Broward County Water & Sewer Dept. City of Doral
City of Hialeah City of Hialeah Gardens
City of Lake Worth Town of Lauderdale by The Sea
Village of Pinecrest Village of Golf
City of Sunrise City of Pembroke Pines
Florida International University Foundation FIU Research Foundation
FIU Athletics Finance Corp. Friends of WLRN
Communities in Schools of Miami Miami Children's Hospital Foundation
Museum of Contemporary Art Hispanic Unity of Florida
Professional and Business Affiliations
American Institute of Certified Public Accountants (AICPA) GFOA Special Review Committee
Florida Institute of Certified Public Accountants (FICPA) Miami Dade League of Cities
Florida Government Finance Officers Association (FGFOA) Broward County League of Cities
Government Finance Officer Association (GFOA) Palm Beach County League of Cities
South Florida Government Finance Officers Association,
Associate Member(FGFOA)
Florida Association of Housing and
Redevelopment Officials (FAHRO)
Communities in Schools of Miami, Inc., Board Member Cuban American CPA Assoc.
Education
Bachelor of Science in Accounting, University of Florida
Master of Business Administration- Florida International University
Continuing Professional Education
Total CPE hours for the last two years is 120, of which 30 meet the Yellow Book (GAS) requirements
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John-Paul Madariaga, CPA Manager
Professional Experience
John-Paul has over 8 years of accounting and auditing experience, including serving governmental, not-for-profit,
and retirement plans entities. His experience includes examining accounting records for governmental, not-for-profit
and for-profit entities to help ensure the reliability and integrity of financial information; compliance with policies,
plans, procedures, laws and regulations; reviews of internal controls; and evaluating management’s achievement of
goals and objectives. He also has substantial experience in auditing federal and state grants in accordance with OMB
Circular A-133 and Rules of the Auditor General of the State of Florida, respectively. John-Paul’s experience
includes serving the following not-for-profit and governmental entities:
City of Miami Springs
City of Doral
Village of El Portal
Harmony Development, Inc.
Boys and Girls Clubs of Miami Dade, Inc.
Boys and Girls Clubs Foundation, Inc.
Boys and Girls Clubs of the U.S. Virgin Islands, Inc.
Charlee of Dade County, Inc.
Charlee of Dade County, Inc. 403b Plan
Miami Museum of Science
Have It Your Way Foundation, Inc.
Drug Free Youth In Town, Inc. (DFYIT)
Temple Beth El of Boca Raton, Inc.
Gulliver City, Inc.
Palmer Trinity School, Inc.
Palmer Trinity School, Inc. 403b Plan
Chaminade- Madonna College Preparatory
Chaminade - Madonna 401k Plan
The Cushman School
Ayuda, Inc.
Arts for Learning, Inc.
Victus, Inc.
Floridean Nursing Home, Inc.
Archdiocese of Miami Parish reviews
Community Smiles
Breakthrough Miami, Inc.
Transition, Inc.
The Alternative Programs, Inc.
Florida Woman Care, Inc. 401k Plan
Tissue Tech, Inc.
Miami Lighthouse for the Blind
BDI Construction, Inc.
Paramount Drywall, Inc.
National Neurotrauma Symposium, Inc.
Liga Contra el Cancer, Inc.
Rethink and Reuse Center, Inc.
New Horizons Community Mental Health
Center 403b Plan
Professional and Business Affiliations
Member, American Institute of Certified Public Accountants
Member, Florida Institute of Certified Public Accountants
Associate Member, Government Finance Officers Association
Member, Florida Government Finance Officers Association
Member, Dade/Broward Government Finance Officers Association
Member, Miami-Dade and Broward League of Cities
Member – Cuban American CPAs
Associate Member of NAHRO
Associate Member of FAHRO
Education
Masters of Accounting, Florida International University
Bachelor of Accounting, Florida International University
Continuing Professional Education
Total CPE hours for the last two years is 80, of which 24 meet the Yellow Book (GAS) requirements
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Maurice Lugo Supervisor
Professional Experience
Maurice has over 7 years of accounting and auditing experience, including serving not-for-profit, charter schools and
governmental entities. His experience includes examining accounting records for governmental, not-for-profit and for-
profit entities to help ensure the reliability and integrity of financial information; compliance with policies, plans,
procedures, laws and regulations; reviews of internal controls; and evaluating management’s achievement of goals and
objectives. He also has substantial experience in auditing federal and state grants in accordance with OMB Circular A-133
and Rules of the Auditor General of the State of Florida, respectively.
Maurice’s experience includes serving the following not-for-profit and governmental entities:
• City of Hialeah, Florida
• City of Hialeah Gardens, Florida
• City of Miami Springs, Florida
• Town of Cutler Bay
• Human Services Coalition of Dade
County/Catalyst Miami
• L.D. Pankey Institute
• Orlando Housing Authority
• Hialeah Housing Authority
• Village of Biscayne Park
• Miami -Dade Water & Sewer Dept.
• Family Counseling Services of Greater Miami
• Harmony Development Center, Inc.
• Performing Arts Center Authority
• ReThink and ReUse Center, Inc.
• Roads End Village Condominium Association,
Inc.
• Greater Miami Youth Symphony of Dade
County, Inc.
• AAA Bayshore, LLC
• Winter Parks Housing Authority
• West Palm Beach Housing Authority
Professional and Business Affiliations
• Associate Member, Florida Government Officers Association
• Associate Member, NAHRO
• Associate Member, FAHRO
• FIU Accounting Association
• NSU Accounting Club
Education
• Bachelor of Accounting, Florida International University
• Master of Accounting (in progress), Nova Southeastern University
Continuing Professional Education
• Total CPE hours for the last two years is 120, of which 30 meet the Yellow Book (GAS) requirements
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Quality Control System
AC&C continually monitors performance to ensure the highest quality of services. Under the
supervision of our audit partners and manager, an audit senior/supervisor is responsible for
monitoring quality control of all appropriate engagements.
The review process begins with the Manager/Supervisor/Supervisor. In engagements where a staff
is assigned, the Manager/Supervisor/Senior is responsible for the initial review of his/her
workpapers as well as the workpapers prepared by the staff.
Subsequent to this review, a partner is responsible for the comprehensive review of the
engagement working papers. The partner is responsible for ensuring that the issues identified
within the audit plan have been properly addressed. The partner will also review the financial
statements to ensure that all material events and transaction have been properly reported and
comply with GAAP requirements.
A second partner performs an overall review of the workpapers and financial statements to provide
a “second set of eyes” and identify any areas that need strengthening prior to issuance.
Quality of the Staff over the Term of the Engagement
The Quality Control Partner, Engagement Partner, Manager, and Supervisor will be the designated
“KEY” members. We pledge to the City they will be returned to the audit each year of the
engagement. In the unlikely event that it does become necessary to replace any of the partners,
managers, senior accountants or staff, we will first attain the City’s express prior permission to do
so. We understand the City’s right to accept or reject replacements. In addition to the engagement
team members proposed herein, we also have other, well-qualified professionals who stand ready
to serve your needs, if required. We can assure the highest professional qualifications of the
assigned staff we will utilize for the City’s engagement.
In addition to our governmental focus, it is AC&C’s policy that all professional employees exceed
the minimum CPE credits required for governmental audits. We currently have an in-house
continuing education program which provides approximately 120 credit hours of governmental and
not-for-profit accounting and auditing every two years to all of our audit staff. In addition, our
staff regularly attends conferences sponsored by the FICPA and the Florida Government Finance
Officers Association. Further, because we are growing and expanding, we have an ongoing
recruitment program that seeks only those accountants with a proven record of academic success.
When we recruit at the Senior, Supervisor and Manager levels, we select CPA’s with proven
governmental auditing experience.
Firm Capacity
Our engagement team’s work load is organized in such a way that the additional activities brought
about by this engagement will not impact our current commitments to other clients. We have
sufficient staff capacity to integrate these professional services for the City into our present
operations, while continuing to maintain the highest standards of quality and time lines to all of our
other clients.
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5. Prior Engagements with the City of South Miami
AC&C served as the City’s auditor for the fiscal years ended September 30, 2004 to 2006.
6. Similar Engagements with Other Government Entities
The following is a list of the most significant engagements performed in the last five years that are
similar to the City’s engagement described in its request for proposal, in which Alberni Caballero
& Company, LLP or its Partners were the principal auditors of the engagement:
City of Miami Springs – 09/30/12, 09/30/11, 09/30/10, 9/30/09, 9/30/08, 9/30/07, 9/30/06,
9/30/05 and 9/30/04- CAFR, 2 Defined Benefit Pension Plans, Federal Single Audit. Value and
Term of Contract: Recently awarded the audits for 2013-2017). Originally 3 year contracts valued
at approximately $120,000 per 3 year contract period. Contact: William Alonso, Finance Director
(305) 608-6677. 201 Westward Drive, Miami Springs, FL 33166 (Engagement Partner- Jennifer P.
Meizoso, CPA, Engagement Manager John-Paul Madariaga, CPA) 400 Hours
City of Hialeah Gardens – 09/30/12, 09/30/11, 09/30/10, 9/30/09, 9/30/08, 9/30/07 and 9/30/06-
1 Defined Benefit Pension Plans, Federal Single Audit, GOB and CITT audits. Value and Term of
Contract: Awarded 1 five year contract and currently on a three year contract valued at
approximately $120,000. Contact: Marcos Piloto, OMB Director (305) 819-5310. 10001 NW 87th
Avenue Hialeah Gardens, FL 33016 (Engagement Partner- Nestor Caballero, CPA, Engagement
Supervisor Juan Rivera) 450 Hours
City of Hialeah - 09/30/12, 09/30/11, 09/30/10, 9/30/09, 9/30/08, 9/30/07 and 9/30/06-CAFR, 2
Defined Benefit Pension Plan, Federal and State Single Audits, GOB, TCT and CITT Audits.
Value and Term of Contract: Awarded 1 five year contract and currently on a three year contract
valued at approximately $360,000. Contact: Javier Collazo, Finance Director (305) 883-5988. 501
Palm Avenue Hialeah, FL 33010 (Engagement Partner- Nestor Caballero, CPA, Engagement
Supervisor – Maurice Lugo) 1,200 Hours
City of Doral – 9/30/12, 9/30/11 and 9/30/10- CAFR, Defined Benefit Pension Plans, Federal
Single Audit. Value and Term of Contract: Awarded a 5 year contract valued at approximately
$200,000. Contact: Eliza Rassi, Finance Director (305) 593-6725 8300 NW 53rd Street Suite 100
Doral, FL 33166 (Engagement Partner- Nestor Caballero, CPA, Engagement Manager John-Paul
Madariaga, CPA) 450 Hours
Village of Miami Shores– 9/30/12, 9/30/11, 9/30/10, 9/30/09 - CAFR, Federal Single Audit.
Value and Term of Contract: Awarded 1 three year contract and currently on a year to year option
valued at approximately $43,000 per year. Contact: Holly Houghdahl, Finance Director (305)
762-4855 10050 NE Second Avenue Miami Shores, FL 33138 (Engagement Partner- Nestor
Caballero, CPA, Engagement Senior – Alfredo Caraballo) 400 Hours
See appendix A for Letters of Recommendation
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GFOA Certificate Of Achievement For Excellence In Financial Reporting Program
AC&C is proud to have assisted all the governmental clients who have participated in the GFOA
Certificate of Achievement for Excellence in Financial Reporting Program (CAFR) qualify for this
award. This certificate program is recognized as the highest award in governmental financial
reporting. The Certificate of Achievement has been awarded on all of the financial statements our
Partners have reported in the certificate program. In addition, the Engagement Partner and
Manager participate in the GFOA’s CAFR review program.
Electronic Workpapers
In keeping with our philosophy of providing services that you would expect from a large national
firm, we use the latest paperless audit software and networking on our audit engagements.
Electronic workpapers continue to improve productivity and efficiency in the audit process. These
efficiencies are passed on to our clients through lower fees and time savings. The City’s
workpapers are scanned or imported directly into our audit programs saving the City time and the
cost of copying or printing such workpapers.
Year-Round Involvement
Our involvement with the City does not end when our financial statements are issued. We remain
involved with the City through our monthly reviews of the minutes of the City’s Council meetings
and communications regarding new accounting standards that have been issued that may affect
future audits. Our year-round involvement ensures a timely and efficient audit and helps us and
the City address any issues before the audit.
New Accounting Standards
Our audit fee is an all inclusive fee which includes assistance to the City in the implementation of
all new reporting standards, including assistance with preparing the financial statements.
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7. Specific Audit Approach
Our approach to the audit engagement integrates traditional auditing techniques with a total
systems concept. We will consider the methods used by the City to process accounting
information when planning our audit, since they influence the design of the internal control. The
audit will be conducted in the three phases which are shown on the adjacent Chart.
Phase I - Strategic Planning
A thorough understanding of your organization and its operating environment is essential for the
development of an audit plan for an efficient, cost effective audit. During this phase, we will
meet with appropriate personnel to obtain and document our understanding of your operations
and, at the same time, give you the opportunity to express your expectations with respect to the
services that we will provide. Our work effort will be coordinated so that there will be minimal
disruption to your staff.
Continuous
Communication
Throughout
1. Strategic
Planning
2. Execution of
the Audit Plan
3. Evaluation of
Audit Results
4. Completion
and Delivery
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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 laws, the City’s ordinances, state statutes,
County and City requirements and resolutions, debt instruments, contracts, other agreements,
and minutes of meetings of the commission and various committees.
• Review major sources of information such as budgets, organization charts, procedures
manuals, financial systems, and management information systems.
• Determine the procedures necessary with regard to opening balances, and obtain reasonable
assurance concerning the consistency of application of accounting principles between the year
being audited and the preceding year.
• Review the working papers of the predecessor auditor.
• Obtain and document an understanding of the City’s internal control structure, including
making an assessment of audit risk.
• Consider the methods that the City uses to process accounting information which influence
the design of the internal control structure. This understanding includes knowledge about the
design of relevant policies, procedures, and records, and whether they have been placed in
operation by the City.
• Develop audit programs to incorporate the consideration of financial statement assertions,
specific audit objectives, and appropriate audit procedures to achieve the specified objectives.
• Identify and resolve accounting, auditing, and reporting matters.
This phase will involve all members of the Engagement Team
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:
• Analytical procedures are applied in this stage of the audit to assist in planning the nature,
timing, and extent of auditing procedures used to obtain evidential matter for specific account
balances or classes of transactions.
• Perform substantive tests of account balances and transactions. Samples will be drawn of
major transaction systems, including cash disbursements, cash receipts, purchases, and
payroll.
• Perform tests of compliance with laws, regulations, contracts, and grants.
• Review test results and preliminary conclusions.
This phase will involve all members of the Engagement Team
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Phase III – Evaluation of Audit Results
This phase includes a review of all audit documentation by the partners to ensure that testing and
documentation support the conclusions reached. This phase also includes preliminary discussions
with management of the audit findings.
Phase IV – Completion and Delivery
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 draft reports will be reviewed with
management before issuance, and the partners will be available to meet with the commission to
discuss our report and address any questions they may have.
Audit Management Plan
Our audit approach is to develop a specific audit action plan tailored to the individual needs of our
client. For each audit we develop the most efficient combination of audit techniques selected
from the following methodologies.
Auditing Standards promulgated by the American Institute of Certified Public Accountants
provide guidance for auditors in assessing the internal control structure for the purpose of the
audit. As auditors, we consider the internal control structure which consists of the following five
elements.
The Control Environment
The control environment includes the management philosophy, operating style, organizational
structure, functions of various boards and committees, methods of assigning responsibility,
personnel policies and procedures, and various other factors that reflect the City's concern with
control in the area of finances. We will read the various documents that impact this environment,
and talk to employees to see how these ideologies are portrayed at various levels.
Risk Assessment
After understanding the control environment, we will identify and assess the relevant risks to
achieving the objectives of the financial system.
Control Activities
The control procedures are integrated in the components of the control environment and
accounting system. While gaining an understanding of those areas, we will assess the control
procedures that the City has in place. Consideration will also be given to potential improvements
to the efficiency and effectiveness of the procedures in place. Any suggestions for improvement
will be communicated to the appropriate person(s).
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Information and Communication
We will document the formal and informal information flow relating to the processing and
recording of financial transactions.
Monitoring
In this final component we will review City practices that are in place to monitor the performance
of its internal control structure.
Sampling Considerations
Our professionals will utilize sampling methodologies designed to ensure effective audit
procedures are applied in the most efficient manner.
Sampling Techniques
We will utilize representative audit sampling procedures with respect to substantive tests of
details and tests of controls and tests of compliance, where a sample of documentation is to be
tested as the principal evidence of a control. During tests of controls, the tests will generally
consist of a combination of corroborative inquiry and either observation, examination of
documents or re-performance. We will use attribute sampling to test documentary evidence as
documentation will be the principal corroborative evidence of identified controls.
Statistical and Non-statistical Sampling
Substantive tests of details and tests of controls can be performed using either statistically or non-
statistically based techniques. Statistical approaches will be based on our calculation of risk
factors. If a non-statistical approach is deemed appropriate, we will design our procedures to
obtain levels of assurance that we judge to be equivalent to those required when using statistically
based techniques.
Sample Sizes
For tests of controls, sample size will be based on the planned or supported assessed level of
control risk and the number of planned or actual deviations expected. For substantive testwork,
sample size will be a function of population, materiality, and risk factors.
Experience In Information Systems And Technology and
Extent of Use of EDP Software in the Engagement
Our approach to auditing integrates traditional auditing techniques with a total system concept.
We are actively committed to using computer-based audit techniques. Our knowledge of
information systems (IS) and the use of paperless audit software yield significant savings in the
time required to complete an audit.
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.
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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.
An important component of our audit is the review of IS general controls. We understand that the
effectiveness of many client control procedures is dependent on reliable computer-generated data
which result from proper IS general controls. Therefore, we will analyze these controls to
determine the adequacy of the internal control environment.
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;
assess the internal controls
Analytical Procedures
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 the City's transactions and events that may have occurred during the year
under audit. We compare the current balances to the prior year and to the current budget.
Isolating significant differences can identify areas that may require additional attention during the
field work. For example, such a review could identify a new revenue source for which we would
need to obtain documentation supporting the City for collecting such monies.
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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.
Internal Controls
The internal control segment is the foundation for the entire audit and involves an extensive
understanding and evaluation of the City’s operating and management information systems and
all related internal controls. The results of this evaluation will influence the nature, timing and
extent of our substantive audit procedures. This approach ensures that we achieve maximum
efficiency and provide valuable feedback to management regarding the effectiveness of controls
being relied upon throughout the year.
A thorough understanding of the internal controls of an organization is critical in planning our
audit procedures and providing useful comments and recommendations to the City. We utilize a
standardized control overview document which assists us in identifying key elements within
internal control, such as the entity’s risk assessment process, the control environment, information
and communication systems, and general monitoring and control activities.
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 the City’s personnel to discuss operations; and
Reviewing internal assessment of internal control
The control overview document helps to ensure that all elements of internal control are
considered.
Subsequently, for significant internal control categories, we will obtain an understanding of the
design of relevant policies and procedures, determine whether such procedures have been placed
in operation and assess control risk. This review begins by holding interviews with data
processing and accounting personnel and evaluating your internal system and accounting
documentation. We will then prepare documentation of the major systems. To the extent it is
available; we will also use internal control documentation currently available. This review is
organized into major accounting cycles.
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
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the control was being performed.
Undocumented controls – Tested through inquiry and observation procedures with
appropriate department personnel.
Laws and Regulations
Statement on Auditing Standards from the American Institute of Certified Public Accountants,
establishes standards for testing and reporting on compliance with laws and regulations. In all
financial statement audits, the auditor must consider laws and regulations that have a direct and
material effect on the financial statements. Further, the auditor designs audit procedures to
provide reasonable assurance that the financial statements are free of material misstatements
resulting from violations of these laws and regulations that have a direct and material impact on
the financial statements. For governmental entities, this requirement is even more important
given the variety of legal and contractual considerations typical of the government environment.
Identifying applicable laws and regulations is fundamental to fulfilling the responsibility of
understanding their effects. We will obtain this knowledge through the following sources:
Discussion of compliance requirements with the City’s officials, including legal counsel.
Identification of compliance matters in statutes, financial ordinances, City’s policies,
contracts, grants and debt agreements.
Review of City’s commission meeting minutes.
Inquiries of the program administrator of the governmental entities that provided grants
about restrictions, limitations, terms and conditions under which such grants were
provided including review of the OMB Circular A-133 Compliance Supplement and the
Florida Single Audit Act.
Our existing knowledge of federal and state laws.
Statistical Samples Offered To Be Performed
In The Audit Based On Federal Grant Funds
Awarded To The City
During the planning of the Single Audit engagement, we will identify the major programs to be
audited pursuant to Circular OMB A-133. As required, the determination will be based on the
dollar amount of federal expenditures and the associated program risk. Further, as appropriate,
our audit will be planned to provide for a low level of assessed control risk.
• After we have identified the major programs, we will perform appropriate auditing
procedures, including tests of controls, tests of compliance with laws and regulations, and
substantive testwork. Sampling methodology determination, i.e., statistical, or non-statistical,
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random, systematic or judgmental selection method, etc., will be based on the auditor
experience and judgment.
Description Of Procedures To Be Used
To Ensure The Accuracy Of The Statistical
And/Or Nonstatistical Samples
To ensure that samples selected for attribute testing (tests of controls and compliance) and
variable testing (tests of details/substantive testwork) are “accurate”, or valid, all samples will be
reviewed and evaluated to ensure that items selected are,
• representative of the population so that characteristics of the sample can be reasonably
projected to the entire population
• of adequate size based on internal controls, tolerable error, expected deviations, acceptable
confidence levels, etc.
• from a complete population
Approach To Be Taken In Completing The Single Audit
Our objective in this area is to perform a single audit which meets the needs of the grantor
agencies and the requirements of OMB A-133.
In order to achieve this objective, we follow the following techniques:
Planning and Supervision
• Inquiry of management regarding identification of the grants subject to single audit
• Review of grant documents
• Review of OMB Circular A-133 Compliance Supplement
• Review of Federal legislation for the enacted laws and regulations
• Instruction to staff as to the requirements of the Single Audit
• Supervision of staff in the performance of the procedures
• Consideration of the effect of computer processing on the nature, timing and extent of
auditing procedures
Assessment of Risks
• Perform an assessment of engagement risk by considering the level of Federal financial
assistance and the nature of the various programs; corresponding consideration of external
environments, internal factors, irregularities, illegal acts, fraud and other noncompliance
matters.
• The single audit is subject to the same risk assessment at the account balance or transaction
level made in the financial audit of the entity. The single audit is designed to obtain assurance
as to compliance with the grant agreements and the single audit requirements of OMB A-133,
while the financial audit is designed to obtain assurance that the financial statements are free
of material misstatement. Consequently, the single audit constitutes only a piece of the
financial audit.
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Determination of Major Programs
• Determine if the City is a low or high risk auditee
• Identify the larger Federal programs based on the dollar threshold Identify in A-133 520(b)
and label them as Type A programs, with the remaining programs labeled as Type B.
• Perform and document risk assessment procedures on each Type A program to identify those
that are low risk
• Consider the criteria in A-133 when performing the risk assessment on Type B programs
• Audit at least all Type A programs not identified as low risk; audit Option 1 - At least half of
the high-risk Type B programs over the Type B threshold (if risk was assessed for all Type B
programs subject to risk assessment) or Option 2 - At least one high-risk Type B program for
each low-risk Type A program; plus programs that are requested in accordance with the
requirements in A-133 .215 (c) to be audited as major; audit such additional programs as may
be necessary to comply with the percentage of coverage rule
Schedule of Expenditure of Federal and State Awards
• Perform procedures to determine the Schedule of Federal Awards are presented fairly in all
material respects in relation to the City’s financial statements taken as a whole
• Determine that the City was able to reconcile the amounts presented in the schedule to
amounts in the financial statements
• Assess the appropriateness and completeness of the City’s identification of Federal programs
included in the schedule
• Determine that the City properly disclosed the basis of accounting and the significant
accounting policies used in preparing the schedule
Materiality
• Determine materiality based on the major program
Internal Control over Major Programs
• For each of the 14 types of compliance requirements (listed in the Compliance Supplement)
which are applicable and material to each major program, document an understanding of the 5
components of internal control (Control Environment/Risk Assessment/Control
Activities/Information and Communication/Monitoring) sufficient to plan the audit to support
a low level of control risk
• Plan the testing of internal control
• Make a sample selection to test internal control following the sample selection techniques
under Sample Sizes and Statistical Sampling
• Reach a conclusion as to the effectiveness of the internal control elements and all significant
deficiencies or material weaknesses (if any).
• If no internal control is found on any of the 14 types of compliance requirements, disclose as a
significant deficiency or material weakness (if any).
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Compliance Testing
• Identify all applicable and material compliance requirements for the major programs
• Perform reasonable procedures to ensure that the compliance requirements are current
• Make a sample selection following the sample selection techniques under Sample Sizes and
Statistical Sampling
• Identify all findings and questioned costs related to noncompliance with the provisions of
laws, regulations, contracts, or grant agreements related to a major program
Level Of Staff And Budgeted Number Of Hours
PROCEDURES
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JULY – SEPTEMBER
Preliminary discussions – entrance meetings T T
Obtain understanding of service objectives T T T
Meet with predecessor auditor and review prior audit work papers T T
Prepare audit planning memorandum T
Identify significant issues, review, evaluate and document internal controls T T T
Assess risk T
Develop detailed audit programs T
DECEMBER
Test internal controls T T
Test compliance with laws, regulations, contracts, grants and the Trust’s policies T T
Substantive test of revenues, expenditures, procurement, payroll, etc. T T
Review minutes and other agreements T
JANUARY-FEBRUARY
Complete review for subsequent events and obtain management representations T
Prepare reports T T
Review draft of all reports for subsequent events and obtain management representations T T
Issue report on findings and management letter T T
Attend meetings with Management and Commission, as required T T
Appropriate Planning and Utilization of Staff
We understand the significance and necessity of proper planning as it relates to performance of a
successful and timely audit. An important aspect of proper planning is our Engagement Partner’s
advance coordination and specific instruction with the Finance Department, allowing an efficient
utilization of staff regarding both preparation of supporting schedules and reconciliations, in
addition to essential document/record gathering.
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8. Identification of Anticipated Potential Audit Problems
We do not anticipate any audit problems at this time. However, if we do encounter an audit
problem we will first gather all relevant facts from the Finance Department and any other key
management personnel and department heads of key offices involved. If the problem is
unresolved at that point, we will meet with the Audit Committee or City Commission, as
applicable.
Engagement Timeline
AC&C has a clear understanding of the reporting requirements outlined in the request for
proposal. In this regard, AC&C has developed a schedule that takes into consideration the City’s
reporting requirements and deadlines.
In order to achieve these goals, we start early in the engagement and complete as much of the
planning and internal control testing as possible. This allows us to focus on the financial
transactions after City has closed its books. We integrate all of our procedures in order to ensure
that we can deliver our reports in sufficient enough time to meet City deadlines. Our Partner’s are
involved throughout the entire process to ensure that any matters that arise are dealt with quickly.
This is an essential process followed by AC&C to prevent surprises that could stall the
engagement.
AC&C is also committed to providing staff that are knowledgeable in governmental and
governmental pension plan activities. This significantly reduces the time spent by your staff
explaining the basic elements of how governmental agencies work and operate. This is
considered a key factor in our success in assisting our clients in meeting deadlines established by
the State, County, Council, or Commission.
We have had great success in following this approach with other governmental agencies and we
are confident that our prior experience in its application will lead to a successful delivery of the
audit. A large part of this success will be tied to City’s ability to deliver the requested
information timely. We understand that as in all large agencies, City staff is busy dealing with
day to day operations. We will make sure to provide requests for information with sufficient
enough lead time to not be disruptive to City staff. We will work with City staff to encourage
open communication in order to mitigate delays and/or misunderstandings. We do not anticipate
that anything more than what has been presented in the Request for Proposal will be required of
City however if there is such a need, we will communicate that in writing to City management.
9. Required Forms and Affidavits
See Appendix F for all required forms and affidavits.
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Proposed Schedule for Completing the Audit
Proposed Schedule for Completing the Audit
1. Price Proposal
See Appendix E for the signed Price Proposal sheet, which includes our proposed “All Inclusive” fees for
the engagement.
2. Cost For Additional Services
AC&C offers a wide variety of consulting and management advisory services to the public sector.
Below is a list of services we offer through our firm or through partnerships we have developed
with other professionals:
Development of accounting and
procedures manual
Evaluation of computer I/T systems
Accounting systems
Development of budgets
Organizational structures
Internal audits
Performance based audits
Indirect cost allocation
Business valuations
Purchasing alternatives
Grant administration and compliance
Cost control
Franchise fee audits
Utility tax audits
Financing alternatives
Aug/Sept Nov/Dec Jan/Feb
Planning/Interim Work X
Testing of Internal Controls X X
A-133 Compliance Procedures (if applicable) X X
Financial Statement Testing X
Report Preparation X
Delivery of Hard Copy Audited Statements X
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The following schedule summarizes our rates for any additional services that may be requested by
the City:
Please note that we have discounted our hourly rates for the benefit of the City.
Standard Proposed
Hourly Hourly
Personnel Billing Billing
Classifications Rates Rates
Quality Control Partner 275 225
Engagement Partner 250 175
Director/Senior Manager 225 150
Manager 200 120
Supervisor 150 100
Accounting Senior 125 80
Accounting Staff 100 60
Administrative 40 25
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CONCLUSION:
ALBERNI CABALLERO & COMPANY, LLP IS THE “RIGHT” CHOICE FOR THE
CITY OF SOUTH MIAMI
WE PLEDGE WE WILL:
Provide a qualified and experienced audit team possessing knowledge of the operation and
administration of the City of South Miami 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 City 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”
The partners and staff of Alberni Caballero & Company, LLP are committed to providing the City
of South Miami 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 also to exceed those expectations.
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APPENDIX A- LETTERS OF RECOMMENDATION
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APPENDIX B- LICENSES TO PRACTICE IN THE STATE OF
FLORIDA
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APPENDIX C- INSURANCE
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APPENDIX D - PEER REVIEW REPORT
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APPENDIX E – PRICE PROPOSAL SHEET
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APPENDIX F – REQUIRED FORMS
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