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Crowe Horwath SouthMiamiCityOf-Audit-041516-FINALa. Title Page Proposal to Provide External Audit Services April 15, 2016 RFP #FN-2016-06 Submitted to: Ms. Maria M. Menendez, CMC, City Clerk City of South Miami South Miami City Hall 6130 Sunset Drive South Miami, Florida 33143 Submitted by: Mr. John C. Weber, Partner Crowe Horwath LLP 1395 Brickell Avenue Miami, Florida 33131-3311 Direct 813.209.2585 Fax 786.534.0251 john.weber@crowehorwath.com The Unique Alternative to the Big Four® Proposal to Provide External Audit Services City of South Miami www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International. Crowe Horwath International does not render any professional services and does not have an ownership or partnership interest in Crowe Horwath LLP. Crowe Horwath International and its other member firms are not responsible or liable for any acts or omissions of Crowe Horwath LLP and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath LLP. b. Table of Contents a. Title Page ............................................................................................................................................. 1  b. Table of Contents ............................................................................................................................... 2  c. Transmittal Letter ................................................................................................................................ 3  d. Technical Proposal ............................................................................................................................. 6  1. General Requirements ..................................................................................................................... 6  2. Independence ................................................................................................................................... 6  3. License to Practice in Florida ........................................................................................................... 7  4. Firm Qualifications and Experience .................................................................................................. 7  5. Prior Engagements with the City of South Miami ........................................................................... 15  6. Similar Engagements with Other Government Entities .................................................................. 15  7. Specific Audit Approach ................................................................................................................. 17  8. Identification of Anticipated Potential Audit Problems .................................................................... 33  9. Required Forms .............................................................................................................................. 34  e. Price Proposal ................................................................................................................................... 35  1. Price Proposal Sheet ...................................................................................................................... 35  2. Rates for Additional Professional Services .................................................................................... 36  3. Manner of Payment ........................................................................................................................ 36  f. Acknowledgement of Addendum ..................................................................................................... 37  Appendix A: Resumes and Continuing Professional Education ..................................................... 38  Crowe Horwath LLP Independent Member Crowe Horwath International 1395 Brickell Avenue Miami, Florida 33131-3311 Tel 786.534.0250 Fax 786.534.0251 www.crowehorwath.com - 3 - c. Transmittal Letter April 15, 2016 Ms. Maria M. Menendez, CMC, City Clerk City of South Miami South Miami City Hall 6130 Sunset Drive South Miami, Florida 33143 Re: RFP #FN-2016-06 Dear Ms. Menendez: Crowe Horwath LLP (Crowe) appreciates the opportunity to present our firm to the City of South Miami (City) to provide audit services for the initial two (2) year period beginning with the fiscal year ending September 30, 2016, with the option of auditing its financial statements for an additional one-year period of one (1) fiscal year. This proposal illustrates our understanding of the scope of work, our commitment to the timely performance of the work, and why Crowe is uniquely qualified to serve the City. It also demonstrates how we differentiate our services from other firms. Our “Deep Specialization” provides focus for industry and discipline-based specialties. This focused approach allows us to be recognized as a leading provider of services and solutions to local governments. The leadership that can only come from direct Partner involvement in every client relationship provides a higher level of expertise and commitment to responsive services that is not always found in other firms. Understanding of the Work to be Performed Based upon our review of the request for proposal document, it is our understanding that Crowe will provide the following services: Express an opinion on the fair presentation of its basic financial statements in conformity with accounting principles generally accepted in the United States of America and the financial reporting requirement of Governmental Accounting Standards Board Statement No. 34, “Basic Financial Statements – and Management’s Discussion and Analysis for State and Local Governments” Perform certain limited procedures involving required Management Discussion and Analysis and the supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards Audit the schedule of federal, state and local financial assistance Audit the General & Police Pension Plan and provide a separate report and presentation to the City of South Miami Pension Board Audit the Police 185 Share Plan and provide a separate report and presentation to the City’s Police 185 Share Plan Board members Audit the South Miami Community Redevelopment Agency (CRA) and provide a separate report and presentation to the Community Redevelopment Agency Board Ms. Maria M. Menendez, CMC, City Clerk City of South Miami Page 4 Our Commitment We are available to conduct your interim and year-end fieldwork at the times you desire, and commit to completing the draft and final versions of your audited financial statements by your required due dates. Upon engagement, we will conduct a planning session to fully develop an audit calendar that meets the needs of the Board and management. Why Choose Crowe Crowe Horwath LLP (www.crowehorwath.com) is one of the largest public accounting, consulting, and technology firms in the United States. Under its core purpose of “Building Value with Values®,” Crowe uses its deep industry expertise to provide audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk and performance services. With offices coast to coast and 3,000 personnel, Crowe is recognized by many organizations as one of the country's best places to work. Crowe serves clients worldwide as an independent member of Crowe Horwath International, one of the largest global accounting networks in the world. The network consists of more than 200 independent accounting and advisory services firms in more than 120 countries around the world. We offer the following reasons to choose our team: We are dedicated to working with governments. Our Government Group works with municipalities, counties, state and federal governmental entities, special purpose districts, school districts, and colleges and universities, including the Cities of Tampa, Lakeland, Fort Lauderdale and Miami Beach, to name a few. Crowe’s Public Sector Services Group is comprised of more than 200 individuals and serves more than 600 governmental organizations nationwide. Strong, collaborative project management approach that has been demonstrated with a number of government agencies. We have successfully managed multi-departmental initiatives and have consistently delivered on time and on budget. We work closely with management and the governing body to align your goals with our work plan to meet your objectives and manage the project effectively. Regular communication and status monitoring are critical to project success and our project management approach fosters such interaction. An experienced team of resources with in-depth knowledge of government auditing services including Generally Accepted Accounting Principles (GAAP), the Comprehensive Annual Financial Report (CAFR), Florida grant programs, the Single Audit Act and OMB Circular A-133 requirements, the rules of the Florida Auditor General and the project management disciplines required to be successful. We are unique among firms in the sense that we have industry team professionals dedicated to and focused on government auditing services. Proposal Validity Our proposal is valid for a period of ninety (90) days from the date of submittal. Right to Negotiate Crowe understands that both parties reserve their respective rights to negotiate appropriate and mutually acceptable provisions prior to execution of any Agreement should Crowe be considered for final negotiations. Additional areas to be negotiated include, among others, mutually agreeable payment terms, insurance provisions, a limitation of liability provision, the extent of indemnity obligations, any data security requirements, and an economical but neutral dispute resolution process. Closing Comments Crowe is fully qualified to provide superior services to the City. Equally important, we have a strong desire to assist you and believe that we can add value to you by completing the audit in a timely manner and by actively seeking ways to assist you in improving your operations. Proposal to Provide External Audit Services City of South Miami 6 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP d. Technical Proposal 1. General Requirements Items 2 through 9 below demonstrate Crowe’s qualifications, competence and capacity to undertake an independent audit of the City of South Miami in conformity with the requirements of this request for proposal. 2. Independence As a firm of certified public accountants, Crowe has policies and procedures to provide reasonable assurance that professional personnel maintain independence, integrity, and objectivity required under professional standards. A dedicated unit within Crowe, the ethics and independence group within the firm’s national office, is responsible for managing and communicating independence and ethics guidance and firm protocol. Independence precludes relationships that might in fact or appearance impair objectivity in performing audit and other attest services. Integrity requires personnel to be honest and candid within the constraints of client confidentiality. Service and the public trust are not to be subordinated to personal gain or advantage. Objectivity is a state of mind and a quality that lends value to a firm’s services. The principle of objectivity imposes the obligation to be impartial, intellectually honest, and free of conflicts of interest. Personnel must consciously refuse to subordinate their judgment to that of others and must avoid relationships that may impair objectivity or influence judgments. The Crowe policy is that all personnel must be in fact and appearance independent in attitude, in the conduct of work performed, and in relationships with clients, as required by applicable professional standards. All professional personnel shall follow the applicable independence rules and regulations of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, the state Boards of Accountancy, the Securities and Exchange Commission (for public company audit clients), the U.S. Government Accountability Office (GAO; for audits subject to GAO requirements), and other regulatory agencies. We communicate independence rules to help provide assurance that our personnel will comply with applicable rules. Our success as an independent public accounting firm requires that the firm and its personnel comply with all applicable ethical and independence standards and rules. The firm views independence or ethics violations seriously. After evaluating the circumstances, the firm may sanction an individual who violates applicable ethics or independence requirements or related firm policies and procedures. Sanctions may include, but are not limited to, entries in personnel records, reduction in responsibilities, reduction in compensation, termination, or other actions that the firm's management may determine are appropriate. Crowe is independent – as defined by the AICPA Code of Professional Conduct and Government Auditing Standards issued by the Comptroller General of the United States – of the City of South Miami and any of its agencies, its elected or appointed officials, and its employees. Crowe is not aware of any conflicts of interest relative to performing the proposed audit for the City of South Miami. Additionally, Crowe is not aware of any professional relationships involving the City of South Miami in the past five (5) years. Proposal to Provide External Audit Services City of South Miami 7 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP 3. License to Practice in Florida Crowe and all team members assigned to the City engagement are properly licensed to practice in Florida, either by being licensed in Florida or in other states through which the mobility rules allow them to practice in Florida. 4. Firm Qualifications and Experience Crowe Horwath LLP: The Unique Alternative® Crowe Horwath LLP (www.crowehorwath.com) is one of the largest public accounting, consulting, and technology firms in the United States. Under its core purpose of “Building Value with Values®,” Crowe uses its deep industry expertise to provide audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk and performance services. With offices coast to coast and 3,000 personnel, Crowe is recognized by many organizations as one of the country's best places to work. Crowe serves clients worldwide as an independent member of Crowe Horwath International, one of the largest global accounting networks in the world. The network consists of more than 200 independent accounting and advisory services firms in more than 120 countries around the world. Position in the Industry: One of the Nation’s Largest Public Accounting and Consulting Firms Crowe ranks as the eighth largest U.S. public accounting and consulting firm (based on U.S. net revenue) according to the 2015 Accounting Today Top 100 Firms List. Proposal to Provide External Audit Services City of South Miami 8 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Client Experience Why Do Our Clients Choose Crowe? Clients tell us when our technical expertise, industry knowledge, and applied technology come together, exceptional service and value result. At Crowe Horwath LLP, we take pride in our relationships with our clients. Our vision is that our people come to work every day motivated to provide our clients with an exceptional experience in every interaction and to help our professionals maintain objectivity in the delivery of our services. How Do We Do This? We have learned from our clients that there are certain attributes important to their overall experience, and each client perceives value differently. To help us meet our clients’ expectations, we conduct an engagement survey that allows our clients to evaluate our performance. Proof of this can be found in what our clients say about us, in our client engagement survey results, and through recognition we’ve received from client experience organizations. Client Engagement Survey Results Our 2015 client engagement surveys show that Crowe has achieved a 90 percent client engagement index score. According to our survey administrator, PeopleMetrics, our score is 35 points higher than the industry average of 55 percent. An engaged client is one who agrees that it really likes working with us, is likely to continue to work with us, would go out of its way to keep working with us, and will recommend us to its colleagues. Recent Awards For the fifth year in a row (2015), Crowe has been recognized as one of the five best-performing companies across PeopleMetrics’ customer base. In addition, PeopleMetrics’ customer base selected two Crowe professionals to be PeopleMetrics Brand Ambassadors. Crowe has been recognized by the Temkin Group as a finalist for the 2014 Temkin Customer Experience Excellence Award. Crowe and its client experience professionals have been recognized by the Customer Experience Professionals Association (CXPA) as a company that is delivering great experiences to clients and as a “Customer Experience Impact Award” winner. Proposal to Provide External Audit Services City of South Miami 9 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Crowe's exceptional client experience team received the Customer Experience Innovation Award from the Customer Experience Professionals Association (CXPA). This is the most prestigious award a company can receive from the CXPA, as it recognizes new practices that improve customer experience, result in strong business impact and advance the field of customer experience for other organizations. Areas of Specialization Crowe is unique in that we have dedicated teams focused on key markets, including:  Banking Construction Financial Services Food and Commodities Government Healthcare Higher Education Manufacturing and Distribution Not-for-Profit Private Equity Groups Retail Dealership Office Locations Crowe serves clients coast to coast from the following office locations: California | Los Angeles, Orange County, Sacramento, San Francisco Connecticut | Hartford District of Columbia | Washington D.C. Florida | Fort Lauderdale, Lakeland, Miami, Tampa Georgia | Atlanta Illinois | Chicago, Oak Brook, Springfield Indiana | Elkhart, Ft Wayne, Indianapolis (2), South Bend Kentucky | Lexington, Louisville Michigan | Grand Rapids New Jersey | Livingston New York | New York Ohio | Cleveland, Columbus Tennessee | Knoxville, Nashville Texas | Dallas Vermont | Burlington National Government Practice Crowe has diverse, in-depth governmental experience that delivers insight and a clear understanding of the challenges and solutions of public sector agencies. Crowe has been serving the needs of government organizations for more than 50 years. We work with many different types of government organizations, including municipalities, counties, public transportation organizations, special service districts, school districts, library districts, State agencies, and quasi-governmental entities. Proposal to Provide External Audit Services City of South Miami 10 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Crowe’s Government Services Team is comprised of 200 professionals, across many of our disciplines and has worked with hundreds of public sector clients on thousands of engagements throughout the United States to streamline systems and processes, optimize revenue, and enable entities to meet reporting and compliance requirements. Our approach is to bring the best experience to the client to best serve the needs of the client. In today’s environment, specialized skills are needed and our team spends their time serving clients in the public sector so that the clients receive the best expertise the firm has to offer. Crowe solutions help address the financial and operational issues most critical to governments in challenging economic times. Our diverse skills sets – business process, technology, finance, accounting, fraud investigation, risk consulting, economic development, and performance - allows us to deliver effective, cost-efficient services and provides your audit team with an in-depth understanding of the unique needs of a local government. Government Assurance Services Audits performed by a trusted CPA can provide peace of mind and identify opportunities to improve accounting and operational performance. We have an unmatched depth of governmental audit knowledge and the functional expertise to deliver superior audits. We help governmental agencies succeed by combining our deep industry experience, innovation, and knowledge with a comprehensive set of technical business competencies. Our specialists are trained to review an organization’s systems and controls to provide recommendations to help the organization meet reporting and disclosure requirements. Crowe audit solutions include: Financial Statement Audits Regulatory Compliance Audits Single Audits/ A-133 Florida State Grant Audits Performance Audits Examinations Our audit professionals are committed to maintaining our reputation for technical excellence, team performance, efficiency, and exceptional client service. By aligning our specialists along industry lines, we add depth and breadth of knowledge to our audit solutions. This industry specialization gives us a better view to understand your business and the unique challenges you face. As a result, you benefit from solutions delivered by people with a thorough understanding of your marketplace. Our cross-functional teams – including specialists in accounting, auditing, finance, risk, and internal controls – have a deep understanding of the risks and reporting complexities in the public sector. We understand the challenges of financial reporting for governments and use a cost-effective, industry- focused, and technology-enabled audit method to improve efficiency in delivering or services. Government Publications and Seminars You need to stay competitive. You want practical, timely, reliable information from knowledgeable, respected thought leaders. To keep you informed, Crowe publishes articles, white papers, newsletters, technical updates, and e- communications. We publish Government Advantage quarterly to provide thought leadership and helpful tips on key issues gathered from our years of experience in helping governments achieve their mission. Combining thought leadership and industry specialization, the Government Advantage series connects business officers with recent developments and best practices. Live seminars, web-based tutorials and published alerts help our clients stay current with issues that affect their organizations. Proposal to Provide External Audit Services City of South Miami 11 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP We also help our clients stay current by inviting them to participate in our in-house continuing professional education courses, providing thought leadership through our webinars and seminars. Our industry groups within the firm offer audit and accounting updates where clients are invited to participate to gain current knowledge on topical issues. Check out: http://www.crowehorwath.com/industries/government/ for an interactive map of our services and our current calendar of events. Federal Programs Experience We have extensive knowledge of OMB Circular A-133. We monitor changes in a variety of topics related to governments as published by the American Institute of Certified Public Accountants (AICPA), Government Accounting Standards Board (GASB), General Accounting Office (GAO) pronouncements, and other federal regulations. Our participation in internal and external continuing professional education courses ensures all members of the engagement team stay abreast of OMB Circular A-133 topics. Crowe possesses valuable experience with the Federal and State Single Audit Acts and OMB Circular- A-133 requirements auditing Billions in federal and state funds on an annual basis. A sample of the federal and state programs our engagement team has had experience auditing includes the following: Agency Program Title Fe d e r a l Agriculture National School Lunch Program School Breakfast Program Special Milk Program for Children Special Supplemental Nutrition Program for Women, Infants & Children Summer Food Service Program for Children Education Adult Education (Federal Basic, EL Civics) Career and Technical Education – Basic Grants to States Carl D. Perkins Vocational Education Federal Direct Student Loans Higher Education Act Pell Grant Federal Family Educational Loans (Stafford, Unsubsidized Stafford Loans, Parent Plus Loans) Federal Work Study Federal Perkins Loans Health Profession Student Loans IDEA (Preschool, Flow-through, Room and Board) TRIO Vocational and Technical Education Act Title I Low Income Title I Grants to Local Educational Entities Title I Reading First Title II Teacher Quality Title IV 21st Century Environmental Protection Agency Capitalization Grants for Drinking Water State Revolving Funds State Revolving Fund Loan Program Proposal to Provide External Audit Services City of South Miami 12 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Agency Program Title Fe d e r a l FEMA Emergency Snow Removal Disaster Grants – Public Assistance Homeland Security State Domestic Preparedness Equipment Support Program Learn and Serve America, School and Community Based Programs Housing and Urban Development Community Development Block Grants/Entitlement Grants Community Development Block Grants/Small Cities Program Home Investment Partnership Program Neighborhood Stabilization Program Human Services Consolidated Health Centers Head Start Medical Assistance Program Medicaid Matching State Survey and Certification of Health Care Providers and Suppliers Temporary Assistance for Needy Families Foster Care Promoting Safe and Stable Families Social Services Block Grant Child Support Enforcement Justice Asset Forfeiture Program Byrne Formula Grant Program Local Law Enforcement Block Grant Public Safety Partnership Labor Community Based Job Training WIA Adult Program WIA Youth Activities WIA Dislocated Workers Science National Science Foundation Transportation Airport Improvement Program Appalachian Development Highway System Highway Planning and Construction Federal Transit – Capital Investment Grants Federal Transit – Formula Grants Treasury Assets Forfeiture Program Energy Electricity Delivery and Energy Reliability, Research, Development and Analysis Electric Energy and Conservation Block Grant St a t e o f F l o r i d a Environmental Protection Beach Management Funding Assistance Program Florida Communities Trust (Florida Forever Funded Grant Program) Transportation Aviation Development Grants County Incentive Grant Program Public Transit Block Grant Program Transit Corridor Program Intermodal Development Program Transportation Regional Incentive Program (TRIP) Proposal to Provide External Audit Services City of South Miami 13 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Agency Program Title St a t e o f F l o r i d a Children and Families Out-of-Home Supports In-Home Supports Independent Living Program CBC – Sexually Exploited Children Revenue Facilities for New Professional Sports, Retained Professional Sports, or Retained Spring Training Franchise Housing Finance Corporation State Housing Initiatives Partnership (SHIP) Program Engagement Team Overview Crowe has built its reputation on close senior level involvement and maintaining a strong client relationship. The ultimate success of our client relationships is largely attributable to one key component – our people. The proposed engagement team is well qualified to provide quality, timely, and personalized services to you. We have also structured our engagement team with extensive partner involvement. You will find our average partner-to-staff leverage ratio is higher than most other firms. By having partners involved in the daily execution, we reduce the time required to respond to accounting issues and thereby close the expectation gap. We are able to achieve this leverage by making significant investments in technology, uniform platforms and methodology, investments that allow us to work smarter and more efficiently. Our technology capabilities are widely recognized and commensurate with that of the Big Four accounting firms. The work that we will perform will be conducted in a timely, planned and orderly manner, without the uncertainty and confusion associated with a delayed, last minute performance. The proposed team takes pride in their client service ethic and in responding promptly to client inquiries. Their policy is to check voice mail throughout the day and return phone calls usually on the day received or within 24 hours at the latest. Likewise, they are typically able to access e-mail even when out of the office and respond promptly. Your Engagement Team is available to address your needs and concerns. As Crowe is not a geography based firm when staffing our engagements we will utilize a team of government and information technology specialists to complete the engagement. Your key team members as well as staff accountants will generally consist of full time personnel based out of our Miami, Fort Lauderdale and Tampa offices. An overview of how we plan to structure your engagement team is as follows: Key Personnel Title / Role John Weber Engagement Partner Kevin Smith Quality Review Partner Craig Sullivan Information Technology Partner Michelle Blackstock Senior Manager Regina Davis Information Technology Manager Alex Schmidt Senior Staff Michael Rozelle Senior Staff Proposal to Provide External Audit Services City of South Miami 14 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Resumes We have provided resumes of the key individuals listed above in Appendix A of our proposal. The resumes detail the number, qualifications, experience and training, including relevant continuing professional education, of the specific staff to be assigned to this engagement. Continuing Professional Education Each of our accountants is educated in his or her chosen profession and holds a minimum of a four- year college degree in accounting. Many have advanced degrees or multiple degrees in related areas. In addition, individuals on average meet or exceed 40 hours of continuing professional education (CPE) each year. This continuing education helps us stay abreast of current technical developments to continually enhance the professional skills of our staff and support the firm’s overall quality control system. Because of our industry specializations, your engagement team members have extensive experience serving government and other exempt organizations. During the past three years, the audit engagement team members have attended classes and conferences on the following topics: generally accepted accounting principles updates; auditing standards updates; governmental and single audit report review; Financial Accounting Standards Board and Governmental Accounting Standards Board updates; financial reporting for not-for-profit and governmental organizations; and compliance auditing. In addition, several members of the firm have taught or led seminars sponsored by professional organizations. Our compliance services department maintains full-time employees to manage all licensing and related CPE requirements. Careful monitoring and management of this process helps verify that all professionals have met the requirements of their licenses. We have provided relevant continuing professional education for the past three (3) years for the proposed engagement team in Appendix A of our proposal. Staff Continuity We would like to emphasize our commitment to maintaining professional staff continuity in servicing this engagement. Many of our clients rely on having the same resources available to them because it reflects a commitment to their organization and a deeper understanding of what their organization is trying to achieve. Our staff builds a relationship based upon integrity, trust, and mutual respect, which is a primary reason that we maintain long-term professional relationships. In assigning staff to engagements, we place high importance on maintaining continuity of staff from one year to the next. This is important from both a client service as well as an engagement efficiency perspective. As our staff gains familiarity with a client, they are able to complete the engagement more efficiently and are able to identify recommendations for improvement within our client’s operations. As with any accounting firm, it does at times become necessary to replace a member of the engagement team. When this occurs they are replaced with someone of comparable skills and experience. While we strive to maintain continuity, the turnover that is inherent in today’s environment provides for staff rotation and the additional benefit of a fresh approach. We have been very successful over the years in appropriately staffing our jobs and this has resulted in high client retention rates and tremendous growth for the firm. Proposal to Provide External Audit Services City of South Miami 15 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP References Quality work, based upon strong competency and directed towards our client’s needs, is the core element of creating value for our clients. Quality service involves prompt and efficient service delivery and effective communications with clients. Business relationships involve gaining trust and respect by listening to our client’s needs and developing a comprehensive understanding of their business and vision for the future before providing advice. We have delivered high value to our clients for decades and we feel that we are well-suited to help the City. Our clients are the best judges of our ability to exceed your expectations. Please feel free to contact any of the individuals listed below for an appraisal of our work. References City of Lakeland, Florida Lakeland, Florida Michael C. Brossart, Finance Director 228 S. Massachusetts Avenue Lakeland, Florida 33801 863.834.6224 michael.brossart@lakelandgov.net City of Fort Lauderdale, Florida Fort Lauderdale, Florida Linda Logan-Short, Chief Financial Officer 100 N. Andrews Avenue Fort Lauderdale, Florida 33301 954.828.5267 llogan-short@fortlauderdale.gov City of Miami Beach, Florida Miami Beach, Florida Allison R. Williams, Chief Financial Officer 1700 Convention Center Drive Miami Beach, Florida 33139 305.673.7000 ext. 6608 allisonwilliams@miamibeachfl.gov 5. Prior Engagements with the City of South Miami Crowe is not aware of any engagements involving the City of South Miami within the past five (5) years. 6. Similar Engagements with Other Government Entities Below we have provided the most significant engagements performed in the last five (5) years that are similar to the City’s engagement ranked on the basis of total staff hours. Broward County Total Staff Hours 3,000 Scope of Work Audit of financial statements, Federal and State Single Audit, other attestation engagements, including agreed-upon procedures for the NTD report for Broward County Transit Dates of Service 2010 to present Engagement Partners John Weber Contact Information Susan Friend, Director of Accounting 954.357.7199 sfriend@broward.org Proposal to Provide External Audit Services City of South Miami 16 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Pinellas County, Florida Total Staff Hours 2,500 Scope of Work Audit of financial statements, Federal and State Single Audit, Board of County Commissioners and Constitutional Officers, includes and separate financial statements for Sewer department Dates of Service 2013 to present Engagement Partners John Weber Contact Information Claretha Harris, Deputy Director of Financial Services 727.464.8370 clharris@co.pinellas.fl.us City of Fort Lauderdale, Florida Total Staff Hours 1,800 Scope of Work Financial statement audit, Federal and State Single Audit, audit of the Schedule of Large User Wastewater Treatment Rate Computation Dates of Service 2012 to present Engagement Partners John Weber Contact Information Linda Logan-Short, Chief Financial Officer 954.828.5267 llogan-short@fortlauderdale.gov City of Miami Beach, Florida Total Staff Hours 1,750 Scope of Work Audit of financial statements, Federal Single Audit, includes separate financial statements for Miami Beach Redevelopment Agency, Miami Beach Parking System Fund, Miami Beach Visitors Convention Authority as managed by Global Spectrum, as well as program specific audits for Building Better Communities bond program and Children’s Trust program Dates of Service 2014 to present Engagement Partners John Weber Contact Information Allison R. Williams, CPA, CGFO, CGMA 305.673.7000 ext. 6608 allisonwilliams@miamibeachfl.gov City of Lakeland, Florida Total Staff Hours 1,450 Scope of Work Annual Financial and Single Audit, employee pension fund, Lakeland Electric, separate financial statements, assistance with bond issues and Certified Audit for Florida Sales and Use Tax Dates of Service 2014 to present Engagement Partners John Weber Contact Information Michael C. Brossart, Finance Director 863.834.6224 michael.brossart@lakelandgov.net Proposal to Provide External Audit Services City of South Miami 17 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP 7. Specific Audit Approach The audit approach in the following section sets forth a work plan, including an explanation of the audit methodology to be followed to perform the nature of services requested in the RFP for all services requested. The risks that are identified, the procedures that are performed or additional testing focus may change on a year-to-year basis based on the risk assessment, but the approach does not change. Transition Approach A smooth transition is Important to both the City and Crowe. This is your chance to re-think how you perceive your internal financial management, audit and business partner relationships and start fresh. However, with a change in auditors, both Crowe and the City must be willing to invest the time necessary to properly facilitate change. We expect to make an investment in our relationship which will be mutually beneficial to our organizations. Upon approval of Crowe as the City’s auditors, we will schedule a planning meeting to meet with management to discuss roles and expectations of Crowe and the City. Other audit planning meetings may be scheduled to discuss specific accounting and financial reporting and to analyze the programs and operational activity. Key elements of an effective transition plan include: Developing client and auditor expectations and performance measurements Developing time lines for audit services Communicating our audit approach We will move quickly to execute the Contract. We will perform our formal due diligence and client acceptance procedures after you have communicated with your previous CPA. As part of that process we will assist you in requesting that Crowe have access to the current firm’s workpapers and schedule a time to review those workpapers. The above services are included in the fee agreement we have provided. The basic timeline that would be followed for transition is: preparation of the engagement letter for submittal to the City, request the City to provide a letter to the prior auditors to allow us to review the workpapers and begin communication with the prior auditors regarding timing of review of audit workpapers. The next step in the process would be to set up a meeting with the City to define expectations and develop the timeline for the audit. After this meeting the final material request listing would be developed. a. Proposed segmentation of the engagement Our audit approach is segregated into four main phases: Audit Strategy Development & Entity-level Controls Assessment & Testing Account-level Controls Assessment & Testing Performance of Audit Procedures Completion, Accumulation of Results and Reporting Phase I Audit Strategy Development & Entity-level Controls Assessment & Testing Phase II Account-level Controls Assessment & Testing Phase III Performance of Audit Procedures Phase IV Completion, Accumulation of Results and Reporting Engagement Management and Communication Proposal to Provide External Audit Services City of South Miami 18 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Phase I – Audit Strategy Development and Entity-level Controls Assessment and Testing This phase of the audit process includes all pre-engagement activities; the preliminary planning process; obtaining an understanding of the City and its environment; evaluating and testing the design of entity-level controls (including policies and procedures that address significant assertions and affect the City as a whole); and identifying significant risks and our planned response to those risks. Prior to each engagement we determine whether to accept or continue the client relationship, evaluate our independence, develop a preliminary overall audit strategy, establish an understanding of the engagement terms, and document that understanding in an engagement letter. Once these activities have been completed, we begin our planning process. Planning affords us an opportunity to work closely with you to develop audit objectives and outline a plan for meeting those objectives. The planning process includes: Identifying the areas of audit emphasis; Assessing risk and materiality; Designing audit techniques and procedures; Discussing and assigning responsibilities; and Formalizing the reporting timetable. During planning, we will ask you to identify areas of higher risk, which we will later address by designing specific controls or substantive tests customized to you. The Crowe approach includes direct input from your management team to ensure our understanding of the scope of perceived risk, your perspectives on the risk, and your expectations of the audit. We will also review your recent audit reports to enhance our efficiency in requesting information and minimize your staff’s time during our fieldwork. In addition to meeting with management, we will also make inquiries of those “charged with governance” as required by SAS 114. This standard requires us to communicate the auditor’s responsibilities under generally accepted auditing standards and an overview of the planned scope and timing of the audit to the individuals identified as “those charged with governance.” Our key audit planning steps include: Entrance Conference. Designed to give our engagement team an overall understanding of your organization. The conference allows us to coordinate audit time frames and due dates, as well as determine the level of assistance we need from your staff and management team. A requested materials letter will be prepared and delivered to you prior to, or shortly after, the close of the conference. Preliminary Analytical Review . We use expectations based on information obtained from various sources, including conversations with management, review of board minutes and internal financial statements, as well as budgets, to perform a preliminary analytical review of account balances. During the review we will study trends, percentage changes, ratios, and other financial data relationships. We may also use computer-assisted audit techniques to compare your current financial data to at least the previous year of data for unusual fluctuations. We will also review your budget to analyze fluctuations and develop an understanding of your planned initiatives. Brainstorming Meeting to Discuss Risk of Material Misstatement. The Crowe engagement team, including the signing executive, will meet to discuss the susceptibility of the financial statements to material misstatement due to error or fraud. This meeting allows team members to share knowledge and gain a better understanding of the potential for material misstatement of the financial statements, including how management could perpetrate and conceal fraudulent financial reporting and how assets of the City could be misappropriated. Proposal to Provide External Audit Services City of South Miami 19 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Assessment of Audit Risk and Materiality Levels. Audit risk (the risk that an auditor may unknowingly fail to modify its opinion on materially misstated financial statements) and materiality must be considered together in designing the nature, timing, and extent of audit procedures. The Crowe team will determine our overall level of materiality and tolerable misstatement using professional judgment. This consideration is influenced by the auditors’ perception of the needs of financial statement users and will therefore include both qualitative and quantitative factors. At the end of the audit we will review any known misstatements and their effect on your financial statements, working with you to determine whether passing on known misstatements will materially affect the financial statements. Documentation of Our Understanding of the City and Its Environment. This is the ongoing process of gathering and analyzing information about the City and its environment that continues throughout the audit. We will perform risk assessment procedures to gain an understanding of the City, such as regulatory and other external factors, the nature of the City and its related operations, objectives and strategies and the related operating risks that may result in a material misstatement of the financial statements; measurement and review of the City’s financial performance; laws and regulations; and internal control, which includes the selection and application of accounting policies. Our procedures include inquiries, analytical procedures, observation, and inspection. Documentation of Information Technology Systems. This process includes a system overview and testing of the system for adherence to acceptable standards. Our approach to testing is documented in the chart below. During Phase I, we will document any significant risks that are identified, as well as our planned response. Proposal to Provide External Audit Services City of South Miami 20 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Phase II – Account-level Controls Assessment and Testing Account level controls are the policies and procedures that address risks related to one particular type (or small group) of transactions or accounts. Once we have gained an understanding of your operations and controls at the account level, the engagement team will assess inherent risk and expected control risk by assertion. We will then corroborate the information we have collected and evaluate if controls were implemented as designed and that the design is appropriate. Corroboration must be accomplished even when testing of controls will not be performed. Corroboration includes observation and obtaining evidence such as documented approvals and any other relevant information that may be retained to show that a control has been implemented as designed. Inquiry alone is not sufficient as a form of corroboration. The assertions identified in SAS 106, “Audit Evidence,” may be classified in the following three broad categories: Assertions about classes of transactions and events for the period under audit; Assertions about account balances at the period-end; Assertions about presentation and disclosure. Inherent risk is the susceptibility of a relevant assertion to a material misstatement, assuming there are no related controls. Control risk is the risk that a material misstatement could occur in a relevant assertion and will not be prevented or detected on a timely basis by the City’s internal controls. When assessing inherent risk, the Crowe team will consider: The City and its environment External factors (for example, regulatory changes that may require major changes in operations); Complexity of underlying calculations; The City’s experience with the transactions; Susceptibility to theft or fraud; Volume of transactions; Degree of judgment required and extent of estimates involved; Competence of client personnel; and Prior-period misstatements. When assessing control risk, the Crowe team will consider: Prior findings in the specific account; Results of grant audits performed by state or federal auditors; Record-keeping and accounting; Control procedures and environment; Materiality of financial impact; Likelihood material amounts of cash or other assets could be misappropriated through fraud or theft; High public or political sensitivity to the subject matter; and Newness of the activity or changes in related conditions. Risk assessment procedures are performed to provide a basis for assessing the risk of material misstatement (combined assessment of inherent and control risk) for each relevant assertion. Then, in the next phase, we design further audit procedures tailored to address each relevant assertion based on the risks identified. Proposal to Provide External Audit Services City of South Miami 21 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Phase III – Performance of Audit Procedures During this phase, the following procedures will be completed: Determining overall responses to assessed risk of material misstatement for the financial statements as a whole and at the opinion unit level; Designing further audit procedures to respond to those risks; Testing the operating effectiveness of controls; Performing substantive tests. Based on our understanding and assessment of Entity-level controls, account-level controls, and any fraud risk factors identified, we develop audit procedures and programs clearly linked to and responsive to the assessed risk of material misstatement at the relevant assertion level. Designing Procedures - In designing procedures, we consider factors such as: The significance of the risk; The likelihood a material misstatement will occur; The characteristics of the class of transaction, account balance, or disclosure involved; The nature of the specific controls used and whether they are manual or automated; Whether we expect to obtain evidence to determine if controls are effective in preventing or detecting material misstatement. We will work closely with you to discuss the implications of future GASB Pronouncements to help the City ensure a smooth transition to the new pronouncements. We will help you to understand how your audit will be affected by the new pronouncements and what the City can do to prepare for the audit. Phase IV – Completion, Accumulation of Results, and Reporting After completing audit procedures, the engagement team will perform certain procedures necessary to conclude the audit. These procedures include final analytical procedures, performing a subsequent events review, evaluating attorney letter responses, assisting in preparing and/or reviewing the completed financial statements, and obtaining representations from management. During this phase, the auditor also accumulates all known and likely uncorrected misstatements, other than those that are trivial, and considers the nature and amount of the misstatements in relation to the affected opinion unit. The objective of the evaluation of uncorrected misstatements is to determine whether the financial statements taken as a whole and those of each opinion unit are free of material misstatement. Uncorrected misstatements will be communicated to those charged with governance at the conclusion of the audit. Also during this phase, the engagement team will evaluate identified control deficiencies and determine whether these deficiencies, individually or in combination, are significant deficiencies or material weaknesses based upon both quantitative and qualitative factors. The significance of a control deficiency depends on the potential for a misstatement, not on whether a misstatement actually has occurred. Any significant deficiencies or material weaknesses must be communicated in writing to those charged with governance. The audit culminates in our report on your audited financial statements, which will include an opinion on the fair presentation of the basic financial statements as they conform to accounting principles generally accepted in the United States of America. As determined by requirements of “Government Auditing Standards” issued by the comptroller general of the United States (the “Yellow Book”), we will also include a report on compliance of your internal control structure with applicable laws and regulations based on the auditors’ understanding of the control structure. Proposal to Provide External Audit Services City of South Miami 22 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP At the completion of the audit, we will submit the following draft reports to management: Year-end comprehensive annual financial report with auditors’ report Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards Single Audit report in accordance with OMB Circular A-133 and the Florida Single Audit Act (when a Single Audit is required) Management letter in accordance with the Rules of the Auditor General of the State of Florida Independent Accountant’s Report on Compliance with Section 218.415, Florida Statutes Report on matters required by SAS 114, which includes a discussion of new accounting procedures implemented, proposed audit adjustments, significant audit estimates, and any additional applicable items Once the reports have been reviewed by management and are approved in final form, we will be available to meet with those charged with governance to review the reports and address questions. Auditing standards require the auditor’s report not be dated earlier than the date on which the auditor has obtained sufficient appropriate audit evidence to support the opinion. Among other things, sufficient appropriate audit evidence includes evidence that the audit documentation has been reviewed and the City’s financial statements, including disclosures, have been prepared and the organization has asserted it has taken responsibility for the financial statements. We will discuss your acceptance procedures with you at the start of the engagement to determine who within the City assumes responsibility for the statements. This will ensure the engagement is properly planned to provide sufficient time for review and acceptance procedures by your organization so final reports are available in advance of any and all reporting deadlines. b. Level of staff to be assigned to each proposed segment of the engagement Staff levels and hours vary based on the complexity of the engagement, types and timing of procedures performed and resource availability. For all segments of the City’s audit, the level of staff is expected to include: Partner, Senior Manager, Senior Staff and Staff. Audit Segmentation Detail Planning / Internal Control / Compliance Engagement Administration and Planning Partner Manager Communication with those charged with governance to discuss goals, audit timetable, audit work plan and particular areas of specialized concentration. Make preliminary assessment of the City, its environment, and its internal controls. Update systems documentation and permanent file information. Review status of prior-year audit recommendations or findings, if any, and ascertain whether they were appropriately resolved. Identify all federal and state financial awards programs and evaluate scope for Federal and Single Audit Acts requirements (part of work plan, but do not anticipate any). Document our understanding of all financially significant laws and regulations, and identify any new laws or regulations that require audit testing. Identify modifications or new inter-local agreements. Discuss implementation of recent GASB pronouncements, and determine applicability of pending matters. Proposal to Provide External Audit Services City of South Miami 23 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Planning / Internal Control / Compliance Evaluation of the Entity , its Environment, and its Internal Controls Manager Senior IT Specialist Obtain and document our understanding of the City, its environment, and its internal controls, organizational structure, and operating characteristics. Evaluate organization, personnel, and financial practices. Document existing EDP controls, and evaluate adequacy of physical security environment, including business continuity (disaster recovery) planning. Evaluate financial reporting systems and administrative monitoring capabilities. Design preliminary tests of controls for compliance with prescribed systems. Identify specific compliance requirements related to, ordinances, and Florida Statutes. Perform testing of controls over areas deemed to have financial significance. These generally include testing of cash disbursements, cash receipts, journal entries, contracts, etc. Review minutes of meetings and prepare an abstract of information relative to the audit of the financial statements. Minutes, Contracts, and Resolutions Manager Obtain data concerning outstanding contractual commitments, if any, for financial statement disclosure adequacy. Design tests of controls for compliance with applicable laws and regulations and the Rules of the Auditor General of the State of Florida. Develop a compliance work program and incorporate it into the overall audit plan. Budgets Senior and Staff Document budgetary process and confirm compliance with applicable local ordinances, procedures, and regulations. Review authorization and impact of interim budget amendments, if any. Substantive Testing Cash, Investments, and Restricted Funds Senior and Staff Ascertain that cash in the balance sheet is on hand, in transit, or on deposit with third parties (trustees) in the name of the City. Ascertain that all cash funds of the City are included in the balance sheets. Ascertain that depositories are legally acceptable, that adequate collateral has been pledged for the City’s deposits, and that separate depository accounts are maintained for each fund for which required. Ascertain that the cash balances reflect a proper cutoff of receipts and disbursements and are stated at the correct amount. Ascertain that cash balances are properly presented in accordance with related restrictions and that disclosures are adequate. Ascertain that investment balances are evidenced by securities or other appropriate legal documents, either physically on hand or held in safekeeping by others, and include all the City’s investments. Ascertain that investments are the types authorized by law, contract, and the investment policy of the City. Ascertain that investment values, incomes, gains, or losses are correctly stated and properly allocated to accounts. Ascertain that investments are properly described and classified by fund type in the combined balance sheet and related disclosures. Proposal to Provide External Audit Services City of South Miami 24 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Substantive Testing Ascertain that only earned revenues, if any, in the fiscal year have been recorded, and amounts uncollected at year-end presented as receivables are valid. Ascertain that the City has satisfied the relevant legal requirements to receive all revenues recorded. Ascertain that the revenues were billed or charged and recorded at the correct amount and receivables are stated at the net realizable amount. Ascertain that amounts billed for services rendered are valid and have been billed to customers at authorized rates. Ascertain that unbilled service revenues are appropriately reflected in the proper accounting period. Receivables, Revenue and Cash Receipts Senior and Staff Ascertain that an adequate allowance for doubtful accounts has been established and that the related amounts and disclosures are properly presented in the financial statements. Ascertain that receivables are properly classified in the financial statements and that related disclosures are adequate. Accounts Payable and Expense Cutoff Senior and Staff Ascertain that recorded expenses and cash disbursements are for goods and services authorized and received. Ascertain that expenses incurred for goods and services and related accounts payable have all been identified, including any contingent or contractual liabilities. Ascertain that expenses for goods and services are authorized in accordance with the budget and other regulations or requirements. Ascertain that expenses and related disbursements and liabilities have been recorded correctly as to account, budget category, period, and amount. Ascertain that expenses and related liabilities are properly classified by budget category and related disclosures are adequate. Payroll and Related Liabilities Senior and Staff Ascertain that payroll disbursements are made only for work authorized and performed by authorized personnel. Ascertain that payroll is computed using rates and other factors in accordance with contracts and relevant laws and regulations. Ascertain that payroll and related liabilities are correctly recorded as to amount and period and properly distributed by account and budget category, and disclosures are adequate. Ascertain the status of employee compensatory benefits for accruals and disclosure. Inventories Senior and Staff Ascertain that inventories recorded represent a complete listing of materials and supplies held by the City, and that such assets are physically on hand. Ascertain that inventory listings are accurately valued and the totals are properly recorded in the accounts. Ascertain that inventory is properly classified and disclosure is made of the equity reserve, if appropriate. Property, Plant, Equipment, and Capital Expenditures Senior and Staff Ascertain that property and equipment represent a complete and valid listing of the capitalizable cost of assets purchased, constructed, or leased, and are physically on hand. Proposal to Provide External Audit Services City of South Miami 25 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Substantive Testing Ascertain that capital expenditures represent a complete and valid listing of the capitalizable cost of the property and equipment acquired during the period, and capitalizable costs are excluded from repairs and maintenance and similar expenditure accounts. Ascertain that capitalized costs and related depreciation associated with all sold, abandoned, damaged, or obsolete fixed assets have been removed from the accounts. Ascertain that depreciation charges on all depreciable assets have been computed on an acceptable and consistent basis and that the related allowance accounts are reasonable. Ascertain that capital expenditures and fixed assets are properly classified and related disclosures are adequate. Long-Term Debt and Debt Service Expenditures Manager Senior Ascertain that debt is authorized and properly recorded. Ascertain that all indebtedness of the City is identified, recorded, and disclosed. Ascertain that the City has complied with provisions of indentures and agreements related to debt, including provisions on use of proceeds. Ascertain that debt service expenditures (principal and interest payable) are properly recorded, classified, and disclosed. Ascertain that debt and related restrictions, guarantees, and commitments are properly presented and related disclosures are adequate. Review arbitrage calculations if applicable for reasonableness. Risk Management and Internal Service Funds Manager Senior Document and evaluate controls over insurance programs including evaluation of the work of any specialists. Ascertain that claims paid during the year are recorded correctly as to account, amount, and period and are disbursed in accordance with the City’s policies and procedures for claims settlement. Review the estimated liability for insurance claims at year-end and the related cost allocations. Ascertain that insurance transactions are properly classified and described in the combined financial statements and related disclosures are adequate. Review GASB Statement No. 10 disclosures related to risk management. Net Assets Senior and Staff Ascertain that all reservations of net assets are recorded and properly authorized. Ascertain that components of net assets are determined in accordance with applicable regulations and requirements. Ascertain that components of net assets and changes in net assets are properly computed and are described, classified, and disclosed appropriately. Revenues Senior and Staff Perform analytical procedures related to charges for services. Compare revenue data for current period and historically to demographics. Develop other customized procedures once planning and risk assessments are performed. Expenses Senior and Staff Perform analytical procedures related to expenses. Through testing and observation, determine that expenses are appropriate and properly classified. Determine that expenses are properly classified for budgetary purposes. Proposal to Provide External Audit Services City of South Miami 26 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Single Audit Grant Programs Manager Senior and Staff Evaluate and test controls over compliance requirements. Ascertain status and resolution of prior-year findings and questioned costs. Test grant revenue through confirmation with grantor agency and ascertain appropriateness of classification. Ascertain that grant revenues and expenditures charged to grant programs are valid and complete and, if applicable, indirect costs are properly allocated. Ascertain that grants are administered and grant revenues and expenditures are recorded in accordance with grant provisions and related laws and regulations. Ascertain that grant-related amounts are properly presented and related disclosures concerning restrictions and compliance are adequate. Wrap-up and Reporting General Partner Manager Senior Coordinate review of the Management’s Discussion and Analysis document for inclusion in the basic financial statements. Complete all financial disclosure checklists. Review status of prior-year audit recommendations and ascertain whether they were appropriately resolved. Provide current-year audit findings and recommendations for improvement related to the financial statements, internal control, accounting, accounting systems, and compliance with policies and procedures. Prepare preliminary drafts of audit reports and management letter and meet with management to review drafts prior to issuance. Schedule and attend final meeting with management to finalize all financial reporting matters. Present financial statements to management and the board. c. Sample size and the extent to which statistical sampling is to be used in the engagement Crowe uses sampling, including statistical sampling as a standard audit procedure. Sample sizes are determined on a number of factors including risk assessment testing, levels of materiality and the overall audit approach. Statistical sampling is used when the data is available and deemed an efficient use in responding to the relevant audit objective. d. Extent of use of EDP software in the engagement Audit Technology Tools Crowe utilizes several key technology systems to improve audit efficiency and effectiveness. Our use of technology in the audit process benefits you in the following ways: Efficiency. Your audit files are designed with you in mind including planning forms, audit programs and procedures, and other unique aspects of the City. This promotes efficiency and allows for easy documentation, exchange and review of information. Proposal to Provide External Audit Services City of South Miami 27 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Communication. When you have a question, all client information is at our fingertips to access at any time no matter where we are located, even from prior year audits. Questions on workpapers or other issues can be accumulated and sent via e-mail or CiRT® in order to reduce the number of interruptions to your daily routine during audit fieldwork. Technical Information. In addition to our extensive industry experience, the Accounting Research manager (ARM) system allows us to provide up-to-date technical information quickly. Accounting standards and support can be provided to management at any time during the audit process. Our auditing philosophy, commitment, attitude and technology effectively distinguish us with our clients and in the marketplace. CiRT® In most engagements, a significant amount of time is spent gathering key documents, reports, and reconciliations; preparing certain schedules and analyses; and responding to various questionnaires. To meet the challenges of managing this complex information-gathering process, Crowe has developed a secure web-based repository, the CiRT® solution, which improves communication and effectively organizes this critical information. CiRT® benefits include: Saves time; Facilitates efficient communication; Promotes task delegation and prioritization; Reduces duplicate requests and minimizes disruptions; and Enables efficient project management. With this innovative tool, clients can manage workflow through a centralized individual who can assign and delegate requests to other company personnel; track project activity by assigned individual, due date, and status with a user friendly, easy-to-use, dashboard interface; quickly view and monitor project progress with an at-a-glance report feature; and access how-to videos and training materials through the enhanced learning center. Proposal to Provide External Audit Services City of South Miami 28 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Through a single portal, CiRT® allows you to gain visibility into multiple projects. Originally designed to streamline complex audit processes, CiRT® is now adapted for Crowe tax, risk management, and performance projects. That means the City can expect fewer duplicative requests for information and improved consistency and efficiency. We view CiRT® as a competitive advantage and intend to continue innovating, remaining in the forefront of process automation. Accounting Research Manager Accounting Research Manager (ARM) is a comprehensive online database of expert-written analytical accounting, auditing, as well as primary source data. It includes the full suite of publications from the Governmental Accounting Standards Board, the GAO, Financial Accounting Standards Board, Emerging Issues Task Force, Securities and Exchange Commission, American Institute of Certified Public Accountants, and International Accounting Standards Board. In addition, interpretive analyses are provided in many areas. Automated Workpapers Integration of sophisticated, electronic engagement management capability directly into our lotus notes- based Automated Workpapers (AWP) documentation system and organization of audit documentation by business process will result in better engagement management and communications with you. Our audit workpapers are fully electronic using our AWP system. AWP significantly enhances the efficiency of the audit process and facilitates staff coordination and supervision regardless of geography. AWP also allows us the ability to query prior year audit databases for client information. Monarch Monarch is a report extraction utility which allows the auditor to selectively convert the fields contained within standard business application reports into data files for further analysis. Audit Control Language ACL (Audit Control Language) is a data manipulation utility which allows the auditor to interpret data from virtually any type of data file format for the following purposes: footing, sorting, summarizing, selecting, extracting, re-calculating, sampling, matching, merging, re-aging, and detecting gaps/duplicates. Proposal to Provide External Audit Services City of South Miami 29 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP These techniques may include testing the accuracy, completeness and integrity of individual accounts or transactions. Or, they may be used to address the need to perform ad-hoc and perhaps exhaustive application of differing criteria to analyze the operational quality of assets represented by such data. Because of the tremendous speed and storage capabilities of such tools, our financial auditors will be able to electronically examine a much higher percentage of original data than if left to purely manual testing methods. In summary, with the use of Monarch and ACL, our audit procedures can be far more effective in providing value-added information regarding your business applications. EDP Systems Crowe provides a variety of services to give clients reasonable assurance that from every possible venue the integrity and security of their EDP system can be relied upon. We assess the business and technical risks within and surrounding the use of the EDP system, and develop practical recommendations that provide clients the right balance between controls and efficiency related to their business and technical processes. Our methodologies are flexible and designed to facilitate an integrated approach to conducting EDP system audits. IT Audit Experience Our IT audit team has deep technology consulting and IT audit experience. This experience includes applications audit projects related to pre- and post-implementation, system integration, functional integration testing, interface integrity, data conversion, application security, general computer controls, and SOX 404 compliance. Our personnel have training and experience in the use of automated tools (Approva and ACL to name a few) to extract end-user security tables to identify security and control weaknesses and/or to provide continuous monitoring. Additionally, Crowe has its own Approva license to conduct data extraction and analysis of client’s application control environment. e. Type and extent of analytical procedures to be used in the engagement We use expectations based on information obtained from various sources, including conversations with management, review of board minutes and internal financial statements, as well as budgets, to perform analytical reviews of account balances. During the analytical reviews we will study trends, percentage changes, ratios, and other financial data relationships. We may also use computer-assisted audit techniques to compare your current financial data to at least the previous year of data for unusual fluctuations. We will also review your budget to analyze fluctuations and develop an understanding of your planned initiatives. f. Approach to be taken to gain and document an understanding of the City of South Miami’s internal control structure Expectations for improved corporate governance have caused governmental organizations to rethink how they manage and control risk. Governments are reviewing the roles and responsibilities of internal audit and newly created internal controls functions to respond to the increased expectations of stakeholders. Crowe’s public sector specialists have the breadth of knowledge and depth of experience necessary to effectively address compliance issues and implement new reporting and disclosure requirements for government organizations. We provide a multidisciplinary approach to assessing financial and structural vulnerability and accountability that brings the type of governance, internal accounting and operational control, and regulatory oversight consulting that is becoming mainstream in corporate America and is at the forefront of thinking in the public sector. Measurement and mitigation of risk in the government context requires more than an auditor’s approach. Our teams combine traditional accounting and auditor resources with operational design consultants and program managers to evaluate financial risk in light of program objectives and balance the need for increased accountability with the need to address program objectives. Proposal to Provide External Audit Services City of South Miami 30 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP The Statements on Auditing Standards (SAS) Nos. 104 through 111 and 114, issued by the American Institute of Certified Public Accountants (AICPA), considerably affect the way audits for government organizations are to be completed. Government entities need to select an audit firm that can meet the requirements of these regulations as well as the specific needs of the organization. Crowe uses a risk based approach to auditing that heavily emphasizes the understanding, corroborating and testing of internal controls to assess risk within the client organization. The primary areas we cover include entity wide controls, IT controls and specific account or cycle level controls. We use personal interaction, flow charting and web based interactive tools to understand, gather, corroborate and test internal controls in order to assess risk. While Crowe used a risk-based approach for several years prior to the implementation of the newer standards, our audit process was strengthened with the new standards. Our desire to provide value and a high-quality audit remains unchanged. We differentiate our services from those of our competitors through close personal involvement from all levels of the engagement team and regular, focused communication with your management team. While the audit process can still be separated into unique phases, the process is not as linear as it was previously. It is likely that decisions reached and information obtained in an earlier phase of the audit may need to be reconsidered based on evidence gathered in a later phase. Crowe’s risk-based audit a g. Approach to be taken in determining laws and regulations that will be subject to audit test work Single Audit Approach Please note that OMB Circular A-133 is no longer applicable for Federal single audits. Current Federal single audit guidance is contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). The Crowe audit team has experience with more than 100 single audit clients and with several Federal and state cognizant agencies auditing billions of dollars in federal and state funds on an annual basis. During the audits, we have worked closely with a variety of Federal agencies including the departments of Agriculture, Education, Labor, Transportation, Health and Human Services, and Housing and Urban Development, and the Environmental Protection Agency. We will begin our Single Audit procedures and program specific grant procedures by developing a comprehensive understanding of laws and regulations that have a direct, material effect on the determination of amounts in your financial statements. This understanding will be based on: Identification of Federal/state award programs and total federal/state expenditures; Determination of major Federal award programs; Discussions with your staff; Review of Board minutes, prior audits, and grant and contractual agreements; and Review of the relevant Federal program requirements from the “2 CFR 200, Compliance Supplement” issued by the Office of Management and Budget and the “Catalog of Federal Domestic Assistance.” Crowe’s Single Audit approach is based on guidance available in OMB 2 CFR 200, Compliance Supplement and Government Auditing Standards issued by the Comptroller General of the United States. When testing your major federal/state programs, we follow the suggested audit procedures included in the Compliance Supplement. For Federal or state programs for which guidance is not available, we will establish programs using applicable grant agreements and federal regulations. Proposal to Provide External Audit Services City of South Miami 31 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Key Elements of the Single Audit Process Crowe’s audit team will work closely with your management team through the entire Single Audit process which includes the following elements: Phase I - Planning Gain an understanding of your major internal control systems and environment related to your major Federal/state grants; Review your administrative systems for Federal and other grant programs; Assess risk related to Federal programs; Conduct a brainstorming session in accordance with SAS 99, including Federal and other grant program administration; Obtain the “Schedule of Expenditures of Federal Awards” (SEFA); Review your prior year SEFA and “Schedule of Findings and Questioned Costs”; Prepare an analysis of federal programs according to type (i.e. Type A or Type B Program); Determine major programs by type based on the audit risk analysis in the assessment performed; and Determine the reliance to be placed on your systems of internal control for Federal and other grant programs through documentation and control testing. Phase II - Fieldwork Review audit programs from the Compliance Supplement to determine the adequacy of the programs; Review and document the requirements of the programs to be tested; Revise programs as necessary based on program requirements; Interview staff, management, counsel, and officials based on planning; Determine sample selection methodology and the types of procedures that will be performed using selected transactions and documents; Samples will be selected based on the current edition of the AICPA guide, Government Auditing Standards and Circular A-133 Audits - Clarified, Chapter 21 titled “Audit Sampling Considerations of Uniform Guidance Compliance Audits” (Chapter) to address sampling in a single audit environment. The Chapter provides context around when sampling may apply in a single audit; planning considerations; suggested minimum sample sizes (including sample size tables); sample selection methods; evaluation considerations for control deviations and compliance exceptions; and documentation elements relating to sampling. Select the transactions and documents for testing; Perform the audit procedures as documented in the audit programs; Document testing results; and Evaluate the results of testing and determine areas that require further examination. Phase I Planning Phase II Fieldwork Phase III Review of Testing Results Phase IV Reporting Proposal to Provide External Audit Services City of South Miami 32 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Phase III - Review of Testing Results Establish the review protocol for evaluation of results; Review potential findings and questioned costs and communicate with your management; Review compliance requirements and compare expected results to the exceptions noted to evaluate materiality; and Draft a summary of the testing results. Phase IV - Reporting Review Federal, state, and other grant reporting requirements; Determine which internal control findings are significant deficiencies or material weaknesses; Prepare findings and draft the auditor’s reports; Review draft reports with your management; and Evaluate management feedback and proposed corrective action, make revisions as necessary, and finalize the reports. h. Approach to be taken in drawing audit samples for purposes of tests of compliance Determination of Sampling Techniques Crowe will use a risk based process to determine what transaction or cycle populations that we want to test controls or perform substantive tests. Samples will be used both for financial audit procedures and compliance procedures. We will use statistical random sampling techniques and judgmental techniques depending on the nature, amount, and extent of activity or the nature and frequency of the control. We use industry standards in determining sample sizes for control tests and sampling sizes for substantive tests are highly variable based on the activity and risk associated with the activity. We use custom data sheets to determine sample sizes but always apply auditor judgment. i. Approval to be taken in seeking issues to be reviewed from City Staff, elected officials and other appropriate individuals Communication with Management and Audit Committee We believe in creating a positive, interactive relationship with your staff, management and the Audit Committee and/or board of directors, while maintaining a high level of professional skepticism and independence that is essential to the audit process. While a good working relationship with staff is very important to a long-term audit relationship, we believe that our first level of accountability is to management and the Audit Committee and/or board of directors that has engaged us to perform audit services to assist in their fiduciary duties over the organizations. In some cases, we have to make difficult decisions on balancing our responsibilities as independent auditors with the agreement of, or working relationship with, management. Our duty is to present factual information as well as our interpretation of those facts to the Audit Committee in order to provide information for business decisions. We always meet with the client’s staff to review a draft of any document being developed to ensure that information is properly disclosed, that our interpretations are understood, and allow for responses from management. Communication though-out the audit is essential to a timely and effective audit. We have found that in the larger engagements a weekly, in-person status meeting with key members of management and Crowe’s audit team assists in keeping the audit on track. During this meeting audit status, exceptions and any problems encountered during the audit would be addressed. Proposal to Provide External Audit Services City of South Miami 33 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP While our accountability ultimately resides with the Audit Committee, in order to provide quality services, we must be able to understand the goals and objectives of the Board, as well as how management implements plans to achieve the goals and objectives, and how they may affect financial reporting. Therefore, it is our plan to invest time throughout each year to meet with management regarding operations. The number of meetings and the specific Board members that meet with Crowe will be based on the needs of the organizations. Significant changes in accounting standards and how they apply to the organizations are communicated in several different formats. They are first introduced through the draft management letter in a section that we have developed that specifically identifies new standards. These standards are then discussed when the management letter is reviewed to verify that management understands what will have to be implemented going forward. This is then presented to management and the Audit Committee for their understanding as well. 8. Identification of Anticipated Potential Audit Problems We believe that our clients and Crowe share a common goal – minimizing the entity’s financial reporting risk. Our service style is designed to help you perform at your best in the financial reporting area, and to also conduct a thorough audit. We do not anticipate problems in the performance of the audit. However, if a conflict in the presentation of financial information or any other issue should arise during the audit process we make every attempt to resolve the issue within the engagement team and your personnel. The vast majority of issues are resolved in this manner. However, in instances where this does not occur, our process is to involve our Accounting Professional Practice (APP) group. Crowe’s APP group performs a pre-issuance review of every audit performed by our firm. These individuals devote 100% of their time in this capacity, and as such we are often able to resolve issues in hours rather than days or weeks. Many of these individuals serve on AICPA committees allowing us to anticipate and communicate to you, new accounting pronouncements before they are formally issued. An APP Executive reviews all financial statements and files prior to issuance and works closely with the team and client on complex accounting and audit issues. We believe several factors allow us to differentiate ourselves from other firms in our ability to respond to technical issues. These factors include: Industry knowledge allows for better communication and understanding of the issues raised. Integration of APP into our offices allows us to have direct communication with them in a timely manner. APP’s fast turn-a-round service standard assists in timely response where input is required. The engagement team truly has ownership of the response. We don’t utilize “National Office” as an excuse for a response. We utilize APP (our national office) as a tool to insure we provide the proper response. Any issues that do arise will be discussed with management as they come up. This ensures that there are no surprises when it is time to deliver the final reports. Our working relationship with our clients is a primary factor in the tremendous growth of the firm over the years. Proposal to Provide External Audit Services City of South Miami 34 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP 9. Required Forms As required, we have provided these forms on the following pages. Public Entity Crime and Conflict of Interest Affidavit Drug Free Workplace No Conflict of Interest/Non-Collusion Affidavit Acknowledgement and Conformance with OSHA Standards Related Party Transaction Verification Affidavit Concerning Federal and State Vendor Listings Presentation Team Declaration/Affidavit of Representation In addition, we have provided our Professional Liability Insurance Certificate following the required forms. Due to varying file types, these pages will not display on the Table of Contents. City of South Miami Page 34 2016 External Audit RFP PUBLIC ENTITY CRIMES AND CONFLICTS OF INTEREST Pursuant to the provisions of Paragraph (2) (a) of Section 287.133, Florida State Statutes – “A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a Bid on a Contract to provide any goods or services to a public entity, may not submit a Bid on a Contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases of real property to a public entity, may not be awarded to perform work as a Contractor, supplier, Subcontractor, or Consultant under a Contract with any public entity, and may not transact business with any public entity in excess of the threshold amount Category Two of Section 287.017, Florida Statutes, for thirty six (36) months from the date of being placed on the convicted vendor list”. The award of any contract hereunder is subject to the provisions of Chapter 112, Florida State Statutes. BIDDERS must disclose with their Bids, the name of any officer, director, partner, associate or agent who is also an officer or employee of the City of South Miami or it’s agencies. SWORN STATEMENT PURSUANT TO SECTION 287.133 (3)(a), FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES THIS FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICIAL AUTHORIZED TO ADMINISTER OATHS. 1. This sworn statement is submitted to ____________________________________ [print name of the public entity] by______________________________________________________________ [print individual’s name and title] for______________________________________________________________ [print name of entity submitting sworn statement] whose business address is ______________________________________ _______________________________________ and (if applicable) its Federal Employer Identification Number (FEIN) is __________________ (If the entity has no FEIN, include the Social Security Number of the individual signing this sworn statement: ____________________________________.) 2. I understand that a “public entity crime” as defined in Paragraph 287.133 (1)(g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or of the United States, including, but not limited to , any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. CityofSouthMiami JohnC.Weber,Partner CroweHorwathLLP 1395BrickellAvenue Miami,Florida33131-3311 35-0921680 City of South Miami Page 35 2016 External Audit RFP 3. I understand that “convicted” or “conviction” as defined in Paragraph 287.133 (1)(b), Florida Statutes, means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, non-jury trial, or entry of a plea of guilty or nolo contendere. 4. I understand that an “affiliate” as defined in Paragraph 287.133 (1)(a), Florida Statutes, means: (a) A predecessor or successor of a person convicted of a public entity crime; or (b) An entity under the control of any natural person who is active in the management of the entity and who has been convicted of a public entity crime. The term “affiliate” includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in any person, or a pooling of equipment or income among persons when not for fair market value under an arm’s length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted of a public entity crime in Florida during the preceding 36 months shall be considered an affiliate. 5. I understand that a “person” as defined in Paragraph 287.133 (1)(e), Florida Statutes, means any natural person or entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services led by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term “person” includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of an entity. 6. Based on information and belief, the statement which I have marked below is true in relation to the entity submitting this sworn statement. [Indicate which statement applies.] _____ Neither the entity submitting this sworn statement, nor any of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, nor any affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. _____ The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. _____ The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent of July 1, 1989. However, there has ✔ City of South Miami Page 41 2016 External Audit RFP RELATED PARTY TRANSACTION VERIFICATION FORM I ______________________________, individually and on behalf of ______________________________ (“Firm”)have Name of Representative Company/Vendor/Entity read the City of South Miami (“City”)’s Code of Ethics, Section 8A-1 of the City’s Code of Ordinances and I hereby certify, under penalty of perjury that to the best of my knowledge, information and belief: (1) neither I nor the Firm have any conflict of interest (as defined in section 8A-1) with regard to the contract or business that I, and/or the Firm, am(are) about to perform for, or to transact with, the City, and (2) neither I nor any employees, officers, directors of the Firm, nor anyone who has a financial interest greater than 5% in the Firm, has any relative(s), as defined in section 8A-1, who is an employee of the City or who is(are) an appointed or elected official of the City, or who is(are) a member of any public body created by the City Commission, i.e., a board or committee of the City, [while the ethics code still applies, if the person executing this form is doing so on behalf of a firm whose stock is publicly traded, the statement in this section (2) shall be based solely on the signatory’s personal knowledge and he/she is not required to make an independent investigation as to the relationship of employees or those who have a financial interest in the Firm.]; and (3) neither I nor the Firm, nor anyone who has a financial interest greater than 5% in the Firm, nor any member of those persons’ immediate family (i.e., spouse, parents, children, brothers and sisters) has transacted or entered into any contract(s) with the City or has a financial interest, direct or indirect, in any business being transacted with the city, or with any person or agency acting for the city, other than as follows: _____________________________________________________________________________ ________(use (if necessary, use a separate sheet to supply additional information that will not fit on this line; however, you must make reference, on the above line, to the additional sheet and the additional sheet must be signed under oath). [while the ethics code still applies, if the person executing this form is doing so on behalf of a firm whose stock is publicly traded, the statement in this section (3) shall be based solely on the signatory’s personal knowledge and he/she is not required to make an independent investigation as to the relationship of those who have a financial interest in the Firm.]; and (4) no elected and/or appointed official or employee of the City of South Miami, or any of their immediate family members (i.e., spouse, parents, children, brothers and sisters) has a financial interest, directly or indirectly, in the contract between you and/or your Firm and the City other than the following individuals whose interest is set forth following their use a separate names: _______________________________________________ (if necessary, use a separate sheet to supply additional information that will not fit on this line; however, you must make reference, on the above line, to the additional sheet and the additional sheet must be signed under oath). The names of all City employees and that of all elected and/or appointed city officials or board members, who own, directly or indirectly, an interest of five percent (5%) or more of the total assets of capital stock in the firm are as follows: _____________________________________________________________________________ __ (if necessary, use a separate sheet to supply additional information that will not fit on this line; however, you must make reference, on the above line, to the additional sheet and the additional sheet must be signed under oath). [while the ethics code still applies, if the person executing this form is doing so on behalf of a firm whose stock is publicly traded, the statement in this section (4) shall be based solely on the signatory’s personal knowledge and he/she is not required to make an independent investigation as to the financial interest in the Firm of city employees, appointed officials or the immediate family JohnC.Weber CroweHorwathLLP NotApplicable NotApplicable NotApplicable City of South Miami Page 42 2016 External Audit RFP members of elected and/or appointed official or employee.] (5) I and the Firm further agree not to use or attempt to use any knowledge, property or resource which may come to us through our position of trust, or through our performance of our duties under the terms of the contract with the City, to secure a special privilege, benefit, or exemption for ourselves, or others. We agree that we may not disclose or use information, not available to members of the general public, for our personal gain or benefit or for the personal gain or benefit of any other person or business entity, outside of the normal gain or benefit anticipated through the performance of the contract. (6) I and the Firm hereby acknowledge that we have not contracted or transacted any business with the City or any person or agency acting for the City, and that we have not appeared in representation of any third party before any board, commission or agency of the City within the past two years other than as follows:_______________________________________________________________________ _____ (if necessary, use a separate sheet to supply additional information that will not fit on this line; however, you must make reference, on the above line, to the additional sheet and the additional sheet must be signed under oath). X:\Purchasing\Vendor Registration\12.28.12 RELATED PARTY TRANSACTION VERIFICATION FORM [3].docx (7) Neither I nor any employees, officers, or directors of the Firm, nor any of their immediate family (i.e., as a spouse, son, daughter, parent, brother or sister) is related by blood or marriage to: (i) any member of the City Commission; (ii) any city employee; or (iii) any member of any board or agency of the City other than as follows: ____________________________________________(if necessary, use a separate sheet to supply additional information that will not fit on this line; however, you must make reference, on the above line, to the additional sheet and the additional sheet must be signed under oath). [while the ethics code still applies, if the person executing this form is doing so on behalf of a firm whose stock is publicly traded, the statement in this section (7) shall be based solely on the signatory’s personal knowledge and he/she is not required to make an independent investigation as to the relationship by blood or marriage of employees, officers, or directors of the Firm, or of any of their immediate family to any appointed or elected officials of the City, or to their immediate family members]. (8) No Other Firm, nor any officers or directors of that Other Firm or anyone who has a financial interest greater than 5% in that Other Firm, nor any member of those persons’ immediate family (i.e., spouse, parents, children, brothers and sisters) nor any of my immediate family members (hereinafter referred to as “Related Parties”) has responded to a solicitation by the City in which I or the Firm that I represent or anyone who has a financial interest greater than 5% in the Firm, or any member of those persons’ immediate family (i.e. spouse, parents, children, brothers and sisters) have also responded, other than the following: _________________________________________________________________________________ _____ (if necessary, use a separate sheet to supply additional information that will not fit on this line; however, you must make reference, on the above line, to the additional sheet and the additional sheet must be signed under oath). [while the ethics code still applies, if the person executing this form is doing so on behalf of a firm whose stock is publicly traded, the statement in this section (8) shall be based solely on the signatory’s personal knowledge and he/she is not required to make an independent investigation into the Other Firm, or the Firm he/she represents, as to their officers, directors or anyone having a financial interest in those Firms or any of their any member of those persons’ immediate family.] (9) I and the Firm agree that we are obligated to supplement this Verification Form and inform the City NotApplicable NotApplicable NotApplicable City of South Miami Page 44 2016 External Audit RFP SECTION 8A-1 CODE OF ETHICS (a) Designation. This section shall be designated and known as the "City of South Miami Conflict of Interest and Code of Ethics Ordinance." This section shall be applicable to all city personnel as defined below, and shall also constitute a standard of ethical conduct and behavior for all autonomous personnel, quasi-judicial personnel, advisory personnel and departmental personnel. The provisions of this section shall be applied in a cumulative manner. By way of example, and not as a limitation, subsections (c) and (d) may be applied to the same contract or transaction. (b) Definitions. For the purposes of this section the following definitions shall be effective: (1) The term "commission members" shall refer to the mayor and the members of the city commission. (2) The term "autonomous personnel" shall refer to the members of autonomous authorities, boards and agencies, such as the city community redevelopment agency and the health facilities authority. (3) The term "quasi-judicial personnel" shall refer to the members of the planning board, the environmental review and preservation board, the code enforcement board and such other individuals, boards and agencies of the city as perform quasi-judicial functions. (4) The term "advisory personnel" shall refer to the members of those city advisory boards and agencies whose sole or primary responsibility is to recommend legislation or give advice to the city commission. (5) The term "departmental personnel" shall refer to the city clerk, the city manager, department heads, the city attorney, and all assistants to the city clerk, city manager and city attorney, however titled. (6) The term "employees" shall refer to all other personnel employed by the city. (7) The term "compensation" shall refer to any money, gift, favor, thing of value or financial benefit conferred, or to be conferred, in return for services rendered or to be rendered. (8) The term "controlling financial interest" shall refer to ownership, directly or indirectly, of ten percent or more of the outstanding capital stock in any corporation or a direct or indirect interest of ten percent or more in a firm, partnership, or other business entity at the time of transacting business with the city. (9) The term "immediate family" shall refer to the spouse, parents, children, brothers and sisters of the person involved. (10) The term "transact any business" shall refer to the purchase or sale by the city of specific goods or services for consideration and to submitting a bid, a proposal in response to a Solicitation, a statement of qualifications in response to a request by the city, or entering into contract negotiations for the provision on any goods or services, whichever first occurs. (c) Prohibition on transacting business with the city. No person included in the terms defined in paragraphs (b)(1) through (6) and in paragraph (b)(9) shall enter into any contract or transact any business in which that person or a member of the immediate family has a financial interest, direct or indirect with the city or any person or agency acting for the city, and any such contract, agreement or business engagement entered in violation of this subsection shall render the transaction voidable. Willful violation of this subsection shall constitute malfeasance in office and shall affect forfeiture of office or position. Nothing in this subsection shall prohibit or make illegal: (1) The payment of taxes, special assessments or fees for services provided by the city government; (2) The purchase of bonds, anticipation notes or other securities that may be issued by the city through underwriters or directly from time to time. Waiver of prohibition. The requirements of this subsection may be waived for a particular transaction only by four affirmative votes of the city commission after public hearing upon finding that: (1) An open-to-all sealed competitive proposal has been submitted by a city person as defined in paragraphs (b)(2), (3) and (4); (2) The proposal has been submitted by a person or firm offering services within the scope of the City of South Miami Page 45 2016 External Audit RFP practice of architecture, professional engineering, or registered land surveying, as defined by the laws of the state and pursuant to the provisions of the Consultants' Competitive Negotiation Act, and when the proposal has been submitted by a city person defined in paragraphs (b)(2), (3) and (4); (3) The property or services to be involved in the proposed transaction are unique and the city cannot avail itself of such property or services without entering a transaction which would violate this subsection but for waiver of its requirements; and (4) That the proposed transaction will be in the best interest of the city. This subsection shall be applicable only to prospective transactions, and the city commission may in no case ratify a transaction entered in violation of this subsection. Provisions cumulative. This subsection shall be taken to be cumulative and shall not be construed to amend or repeal any other law pertaining to the same subject matter. (d) Further prohibition on transacting business with the city. No person included in the terms defined in paragraphs (b)(1) through (6) and in paragraph (b)(9) shall enter into any contract or transact any business through a firm, corporation, partnership or business entity in which that person or any member of the immediate family has a controlling financial interest, direct or indirect, with the city or any person or agency acting for the city, and any such contract, agreement or business engagement entered in violation of this subsection shall render the transaction voidable. The remaining provisions of subsection (c) will also be applicable to this subsection as though incorporated by recitation. Additionally, no person included in the term defined in paragraph (b)(1) shall vote on or participate in any way in any matter presented to the city commission if that person has any of the following relationships with any of the persons or entities which would be or might be directly or indirectly affected by any action of the city commission: (1) Officer, director, partner, of counsel, consultant, employee, fiduciary or beneficiary; or (2) Stockholder, bondholder, debtor, or creditor, if in any instance the transaction or matter would affect the person defined in paragraph (b)(1) in a manner distinct from the manner in which it would affect the public generally. Any person included in the term defined in paragraph (b)( 1) who has any of the specified relationships or who would or might, directly or indirectly, realize a profit by the action of the city commission shall not vote on or participate in any way in the matter. (E) Gifts. (1)Definition. The term "gift" shall refer to the transfer of anything of economic value, whether in the form of money, service, loan, travel, entertainment, hospitality, item or promise, or in any other form, without adequate and lawful consideration. (2)Exceptions. The provisions of paragraph (e)(1) shall not apply to: a. Political contributions specifically authorized by state law; b. Gifts from relatives or members of one's household, unless the person is a conduit on behalf of a third party to the delivery of a gift that is prohibited under paragraph(3); c. Awards for professional or civic achievement; d. Material such as books, reports, periodicals or pamphlets which are solely informational or of an advertising nature. (3) Prohibitions. A person described in paragraphs (b)(1) through (6) shall neither solicit nor demand any gift. It is also unlawful for any person or entity to offer, give or agree to give to any person included in the terms defined in paragraphs (b)(1) through (6), or for any person included in the terms defined in paragraphs (b)(1) through (6) to accept or agree to accept from another person or entity, any gift for or because of: a. An official public action taken, or to be taken, or which could be taken, or an omission or failure to take a public action; b. A legal duty performed or to be performed, or which could be performed, or an omission or failure to perform a legal duty; c. A legal duty violated or to be violated, or which could be violated by any person included in the term City of South Miami Page 46 2016 External Audit RFP defined in paragraph (b)(1); or d. Attendance or absence from a public meeting at which official action is to be taken. (4) Disclosure. Any person included in the term defined in paragraphs (b)(1) through (6) shall disclose any gift, or series of gifts from anyone person or entity, having a value in excess of $25.00. The disclosure shall be made by filing a copy of the disclosure form required by chapter 112, Florida Statutes, for "local officers" with the city clerk simultaneously with the filing of the form with the clerk of the county and with the Florida Secretary of State. (f) Compulsory disclosure by employees of firms doing business with the city. Should any person included in the terms defined in paragraphs (b)(1) through (6) be employed by a corporation, firm, partnership or business entity in which that person or the immediate family does not have a controlling financial interest, and should the corporation, firm, partnership or business entity have substantial business commitments to or from the city or any city agency, or be subject to direct regulation by the city or a city agency, then the person shall file a sworn statement disclosing such employment and interest with the clerk of the city. (g) Exploitation of official position prohibited. No person included in the terms defined in paragraphs (b )(1) through (6) shall corruptly use or attempt to use an official position to secure special privileges or exemptions for that person or others. (h) Prohibition on use of confidential information. No person included in the terms defined in paragraphs (b)(1) through (6) shall accept employment or engage in any business or professional activity which one might reasonably expect would require or induce one to disclose confidential information acquired by reason of an official position, nor shall that person in fact ever disclose confidential information garnered or gained through an official position with the city, nor shall that person ever use such information, directly or indirectly, for personal gain or benefit. (i) Conflicting employment prohibited. No person included in the terms defined in paragraphs (b)(1) through (6) shall accept other employment which would impair independence of judgment in the performance of any public duties. (j) Prohibition on outside employment. (1) No person included in the terms defined in paragraphs (b)(6) shall receive any compensation for services as an officer or employee of the city from any source other than the city, except as may be permitted as follows: a. Generally prohibited. No full-time city employee shall accept outside employment, either incidental, occasional or otherwise, where city time, equipment or material is to be used or where such employment or any part thereof is to be performed on city time. b. When permitted. A full-time city employee may accept incidental or occasional outside employment so long as such employment is not contrary, detrimental or adverse to the interest of the city or any of its departments and the approval required in subparagraph c. is obtained. c. Approval of department head required. Any outside employment by any full-time city employee must first be approved in writing by the employee's department head who shall maintain a complete record of such employment. d. Penalty. Any person convicted of violating any provision of this subsection shall be punished as provided in section 1-11 of the Code of Miami-Dade County and, in addition shall be subject to dismissal by the appointing authority. The city may also assess against a violator a fine not to exceed $500.00 and the costs of investigation incurred by the city. (2) All full-time city employees engaged in any outside employment for any person, firm, corporation or entity other than the city, or any of its agencies or instrumentalities, shall file, under oath, an annual report indicating the source of the outside employment, the nature of the work being done and any amount of money or other consideration received by the employee from the outside employment. City employee reports shall be filed with the city clerk. The reports shall be available at a reasonable time and place for inspection by the public. The city manager may require monthly reports from individual City of South Miami Page 47 2016 External Audit RFP employees or groups of employees for good cause. . (k) Prohibited investments. No person included in the terms defined in paragraphs (b)(1) through (6) or a member of the immediate family shall have personal investments in any enterprise which will create a substantial conflict between private interests and the public interest. (I) Certain appearances and payment prohibited. (1) No person included in the terms defined in paragraphs (b)(1), (5) and (6) shall appear before any city board or agency and make a presentation on behalf of a third person with respect to any matter, license, contract, certificate, ruling, decision, opinion, rate schedule, franchise, or other benefit sought by the third person. Nor shall the person receive any compensation or gift, directly or indirectly, for services rendered to a third person, who has applied for or is seeking some benefit from the city or a city agency, in connection with the particular benefit sought by the third person. Nor shall the person appear in any court or before any administrative tribunal as counselor legal advisor to a party who seeks legal relief from the city or a city agency through the suit in question. (2) No person included in the terms defined in paragraphs (b)(2), (3) and (4) shall appear before the city commission or agency on which the person serves, either directly or through an associate, and make a presentation on behalf of a third person with respect to any matter, license, contract, certificate, ruling, decision, opinion, rate schedule, franchise, or other benefit sought by the third person. Nor shall such person receive any compensation or gift, directly or indirectly, for services rendered to a third party who has applied for or is seeking some benefit from the city commission or agency on which the person serves in connection with the particular benefit sought by the third party. Nor shall the person appear in any court or before any administrative tribunal as counselor legal advisor to a third party who seeks legal relief from the city commission or agency on which such person serves through the suit in question. (m) Actions prohibited when financial interests involved. No person included in the terms defined in paragraphs (b) (1) through (6) shall participate in any official action directly or indirectly affecting a business in which that person or any member of the immediate family has a financial interest. A financial interest is defined in this subsection to include, but not be limited to, any direct or indirect interest in any investment, equity, or debt. (n) Acquiring financial interests. No person included in the terms defined in paragraphs (b)(1) through (6) shall acquire a financial interest in a project, business entity or property at a time when the person believes or has reason to believe that the financial interest may be directly affected by official actions or by official actions by the city or city agency of which the person is an official, officer or employee. (0) Recommending professional services. No person included in the terms defined in paragraphs (b)(1) through (4) may recommend the services of any lawyer or law firm, architect or architectural firm, public relations firm, or any other person or firm, professional or otherwise, to assist in any transaction involving the city or any of its agencies, provided that a recommendation may properly be made when required to be made by the duties of office and in advance at a public meeting attended by other city officials, officers or employees. (p) Continuing application after city service. (1) No person included in the terms defined in paragraphs (b)(1), (5) and (6) shall, for a period of two years after his or her city service or employment has ceased, lobby any city official [as defined in paragraphs (b)(1) through (6)] in connection with any judicial or other proceeding, application, Solicitation, RFQ, bid, request for ruling or other determination, contract, claim, controversy, charge, accusation, arrest or other particular subject matter in which the city or one of its agencies is a party or has any interest whatever, whether direct or indirect. Nothing contained in this subsection shall prohibit any individual from submitting a routine administrative request or application to a city department or agency during the two-year period after his or her service has ceased. (2) The provisions of the subsection shall not apply to persons who become employed by governmental City of South Miami Page 48 2016 External Audit RFP entities, 501(c)(3) non-profit entities or educational institutions or entities, and who lobby on behalf of those entities in their official capacities. (3) The provisions of this subsection shall apply to all persons described in paragraph (p)(1) whose city service or employment ceased after the effective date of the ordinance from which this section derives. (4) No person described in paragraph (p)(1) whose city service or employment ceased within two years prior to the effective date of this ordinance shall for a period of two years after his or her service or employment enter into a lobbying contract to lobby any city official in connection with any subject described in paragraph (p)(1) in which the city or one of its agencies is a party or has any direct and substantial interest; and in which he or she participated directly or indirectly through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, during his or her city service or employment. A person participated "directly" where he or she was substantially involved in the particular subject matter through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, during his or her city service or employment. A person participated "indirectly" where he or she knowingly participated in any way in the particular subject matter through decision, approval, disapproval, recommendation, the rendering of advice, investigation, or otherwise, during his or her city service or employment. All persons covered by this paragraph shall execute an affidavit on a form approved by the city attorney prior to lobbying any city official attesting that the requirements of this subsection do not preclude the person from lobbying city officials. (5) Any person who violates this subsection shall be subject to the penalties provided in section 8A- 2(p). (q) City attorney to render opinions on request. Whenever any person included in the terms defined in paragraphs (b)(1) through (6) and paragraph (b)(9) is in doubt as to the proper interpretation or application of this conflict of interest and code of ethics ordinance, or whenever any person who renders services to the city is in doubt as to the applicability of the ordinance that person, may submit to the city attorney a full written statement of the facts and questions. The city attorney shall then render an opinion to such person and shall publish these opinions without use of the name of the person advised unless the person permits the use of a name. (Ord. No. 6-99-1680, § 2, 3-2-99) Editor's note- Ord. No. 6-99-1680, § 1, adopted 3-2-99, repealed §§ 8A-1 and 8A-2 in their entirety and replaced them with new §§ 8A-1 and 8A-2. Former §§ 8A-1 and 8A-2 pertained to declaration of policy and definitions, respectively, and derived from Ord. No. 634, §§ 1 (1A-1), 1 (1A-2) adopted Jan. l1, 1969. The ACORD name and logo are registered marks of ACORD CERTIFICATE HOLDER © 1988-2014 ACORD CORPORATION. All rights reserved. ACORD 25 (2014/01) AUTHORIZED REPRESENTATIVE CANCELLATION DATE (MM/DD/YYYY)CERTIFICATE OF LIABILITY INSURANCE LOCJECTPRO-POLICY GEN'L AGGREGATE LIMIT APPLIES PER: OCCURCLAIMS-MADE COMMERCIAL GENERAL LIABILITY PREMISES (Ea occurrence)$DAMAGE TO RENTED EACH OCCURRENCE$ MED EXP (Any one person)$ PERSONAL & ADV INJURY$ GENERAL AGGREGATE$ PRODUCTS - COMP/OP AGG$ $RETENTIONDED CLAIMS-MADE OCCUR $ AGGREGATE$ EACH OCCURRENCE$UMBRELLA LIAB EXCESS LIAB DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) INSRLTR TYPE OF INSURANCE POLICY NUMBER POLICY EFF(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)LIMITS PERSTATUTE OTH-ER E.L. EACH ACCIDENT E.L. DISEASE - EA EMPLOYEE E.L. DISEASE - POLICY LIMIT $ $ $ ANY PROPRIETOR/PARTNER/EXECUTIVE If yes, describe under DESCRIPTION OF OPERATIONS below (Mandatory in NH) OFFICER/MEMBER EXCLUDED? WORKERS COMPENSATION AND EMPLOYERS' LIABILITY Y / N AUTOMOBILE LIABILITY ANY AUTO ALL OWNEDSCHEDULED HIRED AUTOS NON-OWNEDAUTOSAUTOS AUTOS COMBINED SINGLE LIMIT BODILY INJURY (Per person) BODILY INJURY (Per accident) PROPERTY DAMAGE $ $ $ $ THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSD ADDL WVD SUBR N / A $ $ (Ea accident) (Per accident) OTHER: THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). COVERAGESCERTIFICATE NUMBER:REVISION NUMBER: INSURED PHONE(A/C, No, Ext): PRODUCER ADDRESS:E-MAIL FAX(A/C, No): CONTACTNAME: NAIC # INSURER A : INSURER B : INSURER C : INSURER D : INSURER E : INSURER F : INSURER(S) AFFORDING COVERAGE SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. 3/20/2015 HUB International Midwest Limited 55 East Jackson Boulevard Chicago IL 60604 Crowe Horwath LLP Attn: Cathy Raven 320 East Jefferson Blvd South Bend IN 46601 Hartford Underwriters Insurance Com30104 Bekah Woodward 312-279-4610 rebekah.woodward@hubinternational.com CROWCHIZ 1897148671 A83UUNAR95094/1/20154/1/2016 2,000,000 1,000,000 10,000 2,000,000 4,000,000 4,000,000X X X A XX 83UUNAR9509 4/1/20154/1/2016 1,000,000 AX X 10,000 83RHUAR91684/1/20154/1/2016 10,000,000 A83WBBQ49284/1/20154/1/2016 X 1,000,000 1,000,000 1,000,000 Evidence of Insurance Crowe Horwath, LLP 320 East Jefferson Blvd. P.O. Box 7 South Bend IN 46624-0007 Proposal to Provide External Audit Services City of South Miami 35 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP e. Price Proposal 1. Price Proposal Sheet Our goal in setting fees is simple: provide long-term, cost-effective pricing for our clients. Before reviewing the fees listed, you should understand several key points about our fee commitment. It is our firm’s philosophy that communication throughout the year with management in order to reach a consensus on large or unusual transactions and implementation of new audit standards and tax law is integral to the engagement’s success. We do not bill for a reasonable amount of such advice and counsel during the year. Our fee structure is designed to ensure that our clients are not reluctant to call us when questions arise. Routine telephone calls are considered part of the basic services and do not involve additional fees. If a question results in significant research or additional work or if we are requested to perform a consulting project, such effort is billed separately. We will, of course, provide you with an estimate of fees for such services and obtain management approval before proceeding. We will not surprise you with additional billings that have not been agreed to by all parties in advance. Fee Assumptions We will present an engagement letter annually to reconfirm our engagement terms. This fee is inclusive of out-of-pocket expenses including travel, and it takes into account the agreed-upon level of preparation and assistance from your personnel. Our fee quote is based upon your finance team providing draft financials prior to our scheduled fieldwork, with no significant audit adjustments. We will advise management should this not be provided or should any other circumstances arise that may cause our time to exceed this estimate. If there is a significant change in your organizational structure or size due to acquisitions or other events, we reserve the right to revise our fees. Circumstances may arise under which we must perform additional work and, thus, require additional billings for our services and which may delay the issuance of our report on the financial statements. Examples of such circumstances include, but are not limited to: Changing audit requirements New professional standards or regulatory requirements New accounting standards or interpretations Erroneous or incomplete accounting records Work due to the identification of, and management’s correction of, fraud, irregularities, errors or inappropriate application of accounting pronouncements Evidence of material weaknesses or significant deficiencies in internal controls New or unusual transactions Failure of your staff to prepare information and financial statements in a timely manner Additional major federal or state programs with 2015 as the base year. To the extent that the amount of time required to provide the services described in this proposal increases due to such changes or that additional time is required to complete any new tasks required by such changes, we reserve the right to adjust our fees appropriately. We will present you with our estimate of any fee revisions before beginning our work in the impacted area(s). We have provided our Price Proposal Sheet on the following page. Due to varying file types, this page will not display on the Table of Contents. Proposal to Provide External Audit Services City of South Miami 36 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP 2. Rates for Additional Professional Services Services other than those outlined above will be billed separately at our standard rates. Any unusual events will be subject to separate fee negotiation and billing. As described in our proposal, any such additional fees would be clearly outlined and approved by management in advance of performing additional work. At Crowe, we consider regular contact with our clients to be an important component of our service delivery. Accordingly, our proposed fees include routine accounting, reporting, and other compliance assistance and advice for phone calls and in-person meetings. Assistance with more complex questions, issues, or projects will be provided at a mutually agreed-upon price based on our hourly billing rates. Position Hourly Rates Partner $400 Senior Manager $280 Manager $180 Senior Staff $150 Staff $115 3. Manner of Payment Crowe understands that payments will be based on a schedule of payments to be developed upon awarding of the contract. Typically, we will invoice you for our services on a periodic basis as services are rendered. Our invoices are due upon receipt. Bills not paid within 30 days of receipt are subject to a monthly interest charge of one percent per month or the highest interest rate allowed by law, whichever is less, which we may elect to waive at our sole discretion, plus costs of collection including reasonable attorneys’ fees. Billings for additional services outside of the above quoted audit fees will be billed monthly based on actual time incurred. Proposal to Provide External Audit Services City of South Miami 37 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP f. Acknowledgement of Addendum No addenda have been issued. Proposal to Provide External Audit Services City of South Miami 38 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Appendix A: Resumes and Continuing Professional Education We have provided resumes and three (3) years of relevant continuing professional education for the proposed engagement team on the following pages. Proposal to Provide External Audit Services City of South Miami 39 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP John C. Weber CPA – Partner 401 E. Jackson Street, Suite 2900 Tampa, Florida 33602-5231 Direct 813.209.2585 Fax 813.229.5952 john.weber@crowehorwath.com www.crowehorwath.com Profile Mr. Weber has over twenty-four years of experience focused on providing assurance and consulting services to public sector clients. He has also served as Crowe’s national partner in charge of the governmental audit practice. Client Focus Services: Financial/Compliance/Performance Audits Internal Audit Outsourcing Management Consulting Industries: Public Sector Publications and Speaking Engagements: Mr. Weber has authored a number of articles including: OMB Releases New Compliance and Reporting Information for Recovery Act Spending Preventing Deficiencies for Single Audits Avoiding Pitfalls in Single Audits Forming an Audit Committee: A Matter of Dollars and (Good) Sense Professional and Industry Experience Mr. Weber provides financial, compliance and performance audit, as well as internal audit and management consulting services, to government, higher education and not-for-profit clients. Professional Affiliations  American Institute of Certified Public Accountants | Former Firm Representative to the Government Audit Quality Center  Florida Institute of Certified Public Accountants  Florida Government Finance Officers Association  United States Comptroller General Advisory Council on Government Auditing Standards Education & Certifications  Bachelor of Science, Accounting Elmhurst College | Elmhurst, Illinois  Certified Public Accountant (CPA) Proposal to Provide External Audit Services City of South Miami 40 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Client Listing County  Broward County  Pinellas County  Polk County State  Florida State Board of Administration  Illinois Department of Corrections  Illinois Department of Revenue  Illinois State Lottery  Illinois State Treasurer’s Office  Illinois Student Assistance Commission  Illinois Tollway Authority  Indiana Bureau of Motor Vehicles  Indiana State Lottery Commission  Kentucky Lottery Corporation Special Districts  Chicago Park District  Chicago Transit Authority  Children’s Board of Hillsborough County  Dallas Area Rapid Transit  Lakeland Area Mass Transit District  Metra  Metropolitan Water Reclamation District of Greater Chicago  Miami Dade Transit  Northern Indiana Commuter Transportation District  North Texas Tollway Authority  Pace (Suburban Bus Division of the Regional Transit Authority)  Polk County Transit Authority Municipal  City of Boulder  City of Coral Springs  City of Dayton  City of Fort Lauderdale  City of Fort Worth  City of Lakeland  City of Miami Beach  City of Tampa  City of Tarpon Springs Federal  Special Inspector General for Afghanistan Reconstruction Proposal to Provide External Audit Services City of South Miami 41 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Continuing Professional Education John C. Weber For the period: 03/15/2013 – 03/15/2016 Course Title Start Date End Date CPE IS Security Awareness FY13 05/06/13 05/07/13 0.00 2013 Partner-Director-Officer Annual Meeting 06/10/13 06/12/13 17.00 Introduction to CRM-Prework 06/11/13 06/27/13 0.00 Introduction to CRM 07/02/13 07/02/13 3.00 Government Audit Efficiency Training 07/24/13 07/25/13 12.00 Local Government Accounting and Auditing Update Seminar 09/06/13 09/06/13 8.00 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2014) 09/13/13 10/31/13 2.00 Strategic Selling Workshop 01/07/14 01/08/14 15.00 Audit Efficiency Practices and Updates for Government Auditors 05/05/14 05/07/14 22.50 PDO SharePoint 2013 Overview 05/09/14 05/09/14 0.00 2014 Partner-Director-Officer Annual Meeting 06/02/14 06/04/14 14.50 Local Government Accounting Update Seminar 06/26/14 06/26/14 8.00 Local Government Accounting Update Seminar 06/27/14 06/27/14 8.00 Closing the Sale Workshop 07/15/14 07/15/14 4.50 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2015) 09/01/14 10/21/14 3.00 IT Controls in Financial Statement Audits 09/16/14 09/16/14 8.00 IS Security Awareness Training 2014 11/14/14 11/17/14 0.00 How to Present the Results of Implementing 67 and 68 to the Governing Body and Other Users of the Fi 12/09/14 12/09/14 1.00 Annual Audit Training for Government, Higher Education and NFP Auditors 04/07/15 04/08/15 14.50 IS Security Awareness Training Spring 2015 05/26/15 05/28/15 0.00 Local Government Accounting Update Seminar 06/19/15 06/19/15 8.00 Local Government Accounting Update Seminar 06/25/15 06/25/15 1.00 2015 Partner-Director-Officer Annual Meeting 06/08/15 06/10/15 10.50 Independence: A Comprehensive Review of AICPA, SEC, PCAOB, and GAO Rules (FY16) 09/01/15 10/22/15 1.50 Certified Audit Training Course 10/28/15 10/28/15 20.00 Navigating the New Revenue Recognition Standard 11/30/15 11/30/15 1.00 Proposal to Provide External Audit Services City of South Miami 42 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Kevin W. Smith CPA – Partner 750 North Saint Paul Street, Suite 850 Dallas, Texas 75201 Tel 214.777.5200 Fax 214.777.5202 kevin.smith@crowehorwath.con www.crowehorwath.com Profile Kevin is a partner in Crowe’s Dallas office and is in charge of Crowe’s National Government Audit Practice. Client Focus Services: Services: Financial Statements Compliance Review Internal Audit Industries: Public Sector Publications and Speaking Engagements “Mitigate Compliance risks Through Best Practices in Grants Management.” Smith, Kevin W. and Eric J. Russell. Journal of the National Grants Management Association. Winter 2011, Volume 19, Number 2. American Institute of Certified Public Accountants – 2010 through current – Washington DC & Las Vegas, Government Accounting and Auditing Conference – “An in-depth review of A-133 Audit Requirements”, GASB 67/68 Implementation Issues”, “Sub-recipient Monitoring the Auditee and Auditor’s Perspective” and “Impact of Economic Downturn on Audits of Local Governments” State of Arkansas Department of Finance and Administration – 2012 and 2010 “GAAP Update & ARRA Issues” Little Rock, Arkansas Government Finance Officers Association of Texas – April 2012, Austin, TX “Governmental Accounting – 101” Southeastern Intergovernmental Audit Forum – September 2011, Ft. Lauderdale, FL “OMB A-133 Update” Oklahoma Society of CPA’s – June 2011, Oklahoma City “Sub-recipient Monitoring the Auditee and Auditor’s Perspective” Electric Utilities Consultants, Inc. - October 2010 Baltimore, Maryland “Government Audits of Federal Grant Recipients” Electric Utilities Consultants, Inc. - June 2010 Chicago, Illinois “ARRA Reporting, Grant Management & Audit Processes” Professional and Industry Experience Kevin has approximately twenty-three years of experience providing both advisory and financial statement and compliance audits to local governmental entities receiving federal awards. Kevin is as a former member of the AICPA’s State & Local Government Expert Panel. Professional Affiliations  American Institute of Certified Public Accountants | State and Local Government Expert Panel, Government Accounting and Auditing Conference Planning Committee Member  Texas CPA Society | Member  Government Finance Officers Association | Certificate of Excellence Reviewer  Government Finance Officers Association of Texas | Financial Reporting and Regulatory Compliance Committee, Program Development Committee  Association of Government Accountants | Member  The Southwest School of Government | Past Advisory Board Member Education & Certifications  Bachelor of Science, Accounting East Central University | Ada, Oklahoma  Certified Public Accountant (CPA) | California, New York, Texas Proposal to Provide External Audit Services City of South Miami 43 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Client Listing – Audit Municipal  City of Arlington  City of Carrollton  City of Cedar Hill  City of Cleburne  City of Dallas  City of Denton  City of Frisco  City of Midland  City of Plano  City of San Antonio  Dallas County Special Districts  Dallas Area Rapid Transit  Dallas Fort Worth International Airport  Employee Retirement Fund of Dallas  Houston Housing Finance Corporation  Houston Metro Transportation Authority  North Texas Tollway Authority  The Navajo Nation  Work Source for Dallas County State  California State Teachers Retirement System  State of Arkansas – State Wide CAFR  State of Arkansas – Division of Legislative Audit  State of Illinois – State Wide Single Audit – Various Agencies  Texas Department of Transportation  Central Texas Turnpike System  Texas Mobility Fund Higher Education  University of Arkansas for Medical Sciences  Southern Illinois University School Districts  Dallas Independent School District  Houston Independent School District Client Listing – Consulting  City of Arlington/Dallas Cowboys  City of Corpus Christi  City of Fort Worth  Dallas Convention and Visitors Bureau  ISO New England  New York Independent System Operator  North Texas Tollway Authority  Oklahoma State Department of Transportation  State of Arizona Auditor General – Rio Nuevo Multi-Purpose Facilities District  State of Arkansas – Arkansas Lottery Commission Proposal to Provide External Audit Services City of South Miami 44 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Continuing Professional Education Kevin W. Smith For the period: 03/15/2013 – 03/15/2016 Course Title Start Date End Date CPE 2013 Partner-Director-Officer Spring Webcast 05/06/13 05/06/13 2.00 AICPA Framework for Small and Medium Sized Entities 05/30/13 05/30/13 1.00 IS Security Awareness FY13 05/06/13 06/14/13 0.00 Introduction to CRM-Prework 06/11/13 06/18/13 0.00 Introduction to CRM 06/25/13 06/25/13 3.00 Personal and Professional Ethics for Texas CPAs 06/25/13 07/08/13 4.00 Fraud II: Detection 07/02/13 07/08/13 8.00 Government Audit Efficiency Training 07/24/13 07/25/13 12.00 AICPA Audit Guide Update 07/30/13 07/30/13 1.00 AICPA National Governmental Accounting and Auditing Update Conference (GAAC) 08/12/13 08/14/13 9.00 Audit Efficiency Workshop 08/19/13 08/19/13 8.00 Fraud Case Study 08/22/13 08/22/13 1.50 Industry Overviews for Texas Offices 08/22/13 08/23/13 12.00 Local Government Accounting and Auditing Update Seminar 09/06/13 09/06/13 8.00 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2014) 09/13/13 11/01/13 2.00 AICPA National Governmental and Not-for-Profit Training Program 10/21/13 10/23/13 8.00 Annual Accounting, Tax, and Business Planning Seminars 11/20/13 11/20/13 4.00 Private Company Audit Update 12/19/13 12/19/13 2.50 Audit Efficiency Practices and Updates for Government Auditors 04/07/14 04/09/14 20.50 PDO SharePoint 2013 Overview 05/02/14 05/02/14 0.00 Audit Efficiency Practices and Updates for Government Auditors 05/05/14 05/07/14 0.00 2014 Partner-Director-Officer Annual Meeting 06/02/14 06/04/14 16.00 Employer Audits for CA State Teachers Retirement System 06/12/14 06/12/14 5.00 Unlocking the Mystery Around Plan Assumptions 06/17/14 06/17/14 1.00 Local Government Accounting Update Seminar 06/27/14 06/27/14 8.00 Omni Circular – An Overview of Changes 09/10/14 09/10/14 1.00 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2015) 09/01/14 10/20/14 3.00 Help! What Do All of the Questions and Answers Mean for My Implementation of GASB 67 and 68? 10/21/14 10/21/14 1.00 IS Security Awareness Training 2014 11/14/14 11/17/14 0.00 How to Present the Results of Implementing 67 and 68 to the Governing Body and Other Users of the Fi 12/09/14 12/09/14 1.00 The Bond Buyer's Texas Public Finance Conference 02/09/15 02/11/15 6.50 Annual Audit Training for Government, Higher Education and NFP Auditors 04/07/15 04/08/15 14.50 Proposal to Provide External Audit Services City of South Miami 45 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Course Title Start Date End Date CPE IS Security Awareness Training Spring 2015 05/26/15 06/17/15 0.00 2015 Partner-Director-Officer Annual Meeting 06/08/15 06/10/15 14.50 Forensic Accounting 07/06/15 07/06/15 4.00 Personal and Professional Ethics for Texas CPAs 07/06/15 07/06/15 4.00 Governmental Accounting & Auditing Update 07/29/15 07/29/15 8.00 Independence: A Comprehensive Review of AICPA, SEC, PCAOB, and GAO Rules (FY16) 09/01/15 09/01/15 1.50 Financial Institutions Regulatory Update 09/16/15 09/16/15 1.00 GASB 77 on Tax Abatement Disclosures: What, Why, and How Your Government Agency Will Be Affected 10/22/15 10/22/15 1.00 GASB 67 and GASB 68 Implementation Questions: Part Two 10/28/15 10/28/15 1.00 Firmwide Promotion Academy - Manager Track 11/09/15 11/11/15 4.50 GASB 72: Fair Value Measurement and Application 02/25/16 02/25/16 1.00 Proposal to Provide External Audit Services City of South Miami 46 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Craig D. Sullivan CPA, CISA, QSA – Partner 330 East Jefferson Boulevard South Bend, Indiana 46601-2314 Direct 574.236.7618 Fax 574.236.8692 craig.sullivan@crowehorwath.com www.crowehorwath.com Profile Mr. Sullivan has 30 years’ experience in accounting and technology consulting related to Risk Management and Information Technology Controls. He is responsible for the thought leadership and technical activities of the Technology Risk activities of Crowe’s Risk Consulting Services business unit on a Firm-wide basis. Client Focus Services: Payment Card Industry Risk Management Industries: Manufacturing and Distribution Financial Services Public Sector Community Involvement: Michiana Public Broadcasting Corporation (WNIT Channel 34), a PBS Station Professional and Industry Experience During his career, Mr. Sullivan has spent the majority focusing on the information technology industry and risk consulting, including Payment Card Industry (PCI) and Service Organization Controls (SOC) report examination. Publications and Speaking Engagements  Instructor, Management Information Systems & Accounting courses at Bowling Green State University  Instructor, Internal Audit Seminars Professional Affiliations  Institute of Internal Auditors (IIA) Education & Certifications  Master of Accountancy  Bachelor of Science, Business Administration, Accounting and Management Information Systems Bowling Green State University | Bowling Green, Ohio  Certified Public Accountant (CPA)  Certified Information Systems Auditor (CISA)  Qualified Security Assessor (QSA) Proposal to Provide External Audit Services City of South Miami 47 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Continuing Professional Education Craig D. Sullivan For the period: 03/15/2013 – 03/15/2016 Course Title Start Date End Date CPE Risk Training Week 04/08/13 04/12/13 29.50 IS Security Awareness FY13 05/06/13 06/18/13 0.00 2013 Partner-Director-Officer Annual Meeting 06/10/13 06/12/13 14.50 Introduction to CRM-Prework 06/11/13 06/18/13 0.00 Introduction to CRM 06/17/13 06/17/13 3.00 Audit Efficiency Workshop 08/30/13 08/30/13 8.00 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2014) 09/13/13 11/01/13 2.00 Risk Financial Audit Support Update 09/18/13 09/18/13 2.00 Public Company Auditor Webcast 09/19/13 09/19/13 3.50 Changing PCI Standards Brings New Challenges 11/13/13 11/13/13 1.00 Crowe Horwath LLP Annual Financial Institutions Conference 11/19/13 11/19/13 8.00 Public Company Audit Update 12/17/13 12/17/13 7.50 Public Company Audit Update Webcast 01/07/14 01/07/14 0.00 Risk Training Week 04/29/14 04/29/14 10.50 Risk Training Week 04/30/14 04/30/14 5.50 Risk Training Week 05/01/14 05/01/14 7.00 Risk Training Week 05/02/14 05/02/14 2.50 Implementing the 2013 COSO Framework 05/28/14 05/28/14 1.50 2014 Partner-Director-Officer Annual Meeting 06/02/14 06/04/14 17.00 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2015) 09/01/14 10/31/14 3.00 2014 Risk Financial Audit Support Update 10/22/14 10/22/14 2.00 IS Security Awareness Training 2014 11/14/14 12/01/14 0.00 PCI: What Your QSA Should be Clarifying About Version 3.0 11/19/14 11/19/14 1.00 Crowe Horwath LLP Annual Financial Institutions Conference 11/20/14 11/20/14 7.50 PCI Version 3.0 Training 11/24/14 11/25/14 15.00 Public Company Audit Update 12/16/14 12/16/14 9.00 Quarterly PCI Training 03/05/15 03/05/15 1.00 IS Security Awareness Training Spring 2015 05/26/15 06/17/15 0.00 2015 Partner-Director-Officer Annual Meeting 06/08/15 06/10/15 13.50 Independence: A Comprehensive Review of AICPA, SEC, PCAOB, and GAO Rules (FY16) 09/01/15 11/23/15 1.50 PCI: How Are Organizations Limiting Liability and Reducing IT Risk at the Same Time? 10/14/15 10/14/15 1.00 Annual Accounting, Tax and Business Planning Seminars 11/06/15 11/06/15 4.50 Public Company Inspection Results Webcast 11/11/15 11/11/15 2.00 Crowe Horwath LLP Annual Financial Institutions Conference 11/19/15 11/19/15 7.50 Public Company Audit Update 12/15/15 12/15/15 9.00 Proposal to Provide External Audit Services City of South Miami 48 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP C. Michelle Blackstock CPA, CITP – Senior Manager 401 East Las Olas Blvd., Suite 1100 Fort Lauderdale, Florida 33301-4230 Direct 954.202.2924 Fax 954.202.8639 michelle.blackstock@crowehorwath.com www.crowehorwath.com Profile Ms. Blackstock has twenty five years of experience in providing assurance services to public sector clients including government. Client Focus Services: Assurance Industries: Public Sector Community Involvement: GFOA Special Review Committee for the past five years Treasurer, Greater Palm Beaches Alumnae Association of Delta Gamma Fraternity Assistance Treasurer, First United Methodist Church of Boca Raton Professional Affiliations American Institute of Certified Public Accountants Florida Institute of Certified Public Accountants Government Finance Officers Association Florida Government Finance Officers Association Professional and Industry Experience Ms. Blackstock has prior work experience in both international and local public accounting firms. Publications and Speaking Engagements  Internal Controls, Florida Institute of Certified Public Accountants 22nd Annual Accounting Show, 2007  Panel discussion on Special District Governance, Florida Association of Special Districts annual conference, 2008, 2009 and 2011  Financial Reporting - Audit Requirements & Transparency, Florida Association of Special Districts annual conference, 2010  Finance - New Reporting Requirements, Audit Update & How to Read and Understand Your Audit, Florida Association of Special Districts annual conference, 2012  Fraud, Florida Government Finance Officers Association annual conference, 2012  Reading and Understanding Your Audit, Florida Association of Special Districts annual conference, 2013 Education & Certifications  Bachelor of Science in Business Administration, Accounting University of Central Florida | Orlando, Florida  Certified Public Accountant (CPA)  Certified Information Technology Professional (CITP) Proposal to Provide External Audit Services City of South Miami 49 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Client Listing County  Broward County  Miami Dade Transit  Housing Finance Authority of Broward County  Floyd County, Georgia  Cobb County Health Department  Gwinnett County Health Department Special Districts  South Florida Water Management District Single Audit  South Indian River Water Control District  Pinellas Park Water Management District  South Trail Fire and Rescue District  East Naples Fire Rescue District  Loxahatchee Groves Water Control District  Central Broward Water Control District  Canaveral Port Authority  Sanford Port Authority  Various Community Development Districts Municipal  City of Fort Lauderdale  City of Miami Beach  Town of Davie  City of North Lauderdale  City of Cooper City  Town of Hillsboro Beach  Town of Lauderdale-By-The-Sea  Village of Wellington  Town of Hypoluxo  Town of Haverhill  Town of Hypoluxo  Town of Glen Ridge  Town of Cloud Lake  Parkland Police Pension Fund  Jacksonville Police and Fire Pension Fund  City of Oviedo  City of Marietta, Georgia Proposal to Provide External Audit Services City of South Miami 50 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Continuing Professional Education C. Michelle Blackstock For the period: 03/15/2013 – 03/15/2016 Course Title Start Date End Date CPE A&A Report May 2012 04/05/13 04/05/13 3.00 A CPA's Guide to Risk Assessment in Business 04/24/13 04/24/13 2.00 A&A Report June 2012 05/07/13 05/07/13 3.00 Key Techniques to Prevent and Detect Fraud 05/08/13 05/08/13 1.50 Auditor General's Update 05/16/13 05/16/13 2.00 A&A Report July 2012 05/16/13 05/16/13 3.00 A Practitioner's Guide to IT General Controls 05/22/13 05/22/13 2.00 IT Audits & What to Pay Attention To 06/05/13 06/05/13 2.00 The Latest and Greatest in Finance and Auditing 06/12/13 06/12/13 1.00 Social Media 06/13/13 06/13/13 1.00 Smart Data Management 06/19/13 06/19/13 3.00 GASB Update 08/09/13 08/09/13 4.00 A&A Report for August 2012 08/28/13 08/28/13 3.00 Governmental Accounting Seminar 10/11/13 10/11/13 4.00 Making Sense of Deferred Inflows and Outflows 11/12/13 11/12/13 1.50 Auditing: Fraud Detection & Cash Recovery using Active Data for Excel 11/17/13 11/17/13 8.00 2013 Governmental Audit planning and risk assessment 12/05/13 12/05/13 8.00 Ethics and Professional Conduct for Florida CPA's 04/28/14 04/28/14 4.00 GASB Update 06/01/14 06/01/14 2.00 GASB Hot Topics 06/01/14 06/01/14 2.00 Accounting & Financial Reporting for Pensions, GASB 67 & 68 06/02/14 06/02/14 2.00 Staying on Track Through Twists and Turns 06/02/14 06/02/14 1.00 General Fund Five-Year Forecasting on the Fly 06/02/14 06/02/14 2.00 Information Technology Governance 06/02/14 06/02/14 2.00 How to Deal with the Press on Financial Issues 06/02/14 06/02/14 1.00 Accounting Complexities Facing Local Governments 06/03/14 06/03/14 2.00 Internal Audit Forum 06/03/14 06/03/14 2.00 Pension Challenges Ahead - DB verses DC 06/03/14 06/03/14 2.00 Legislative Update 06/04/14 06/04/14 2.00 Municipal Utility Operations - Internal Controls and Best Practices 06/04/14 06/04/14 2.00 Proposed Changes: From Measuring Assets to Determining Fair Value 09/09/14 09/09/14 2.00 Orientation: New Hire 10/13/14 10/14/14 0.00 Annual CPA Vendor Pool Training 11/12/14 11/12/14 2.00 New Hire Performance Management Process Overview 12/02/14 12/02/14 0.00 Proposal to Provide External Audit Services City of South Miami 51 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Course Title Start Date End Date CPE Proposed Changes: From Measuring Assets to Determining Fair Value 09/09/14 09/09/14 2.00 Proposed Changes: From Measuring Assets to Determining Fair Value 09/09/14 09/09/14 2.00 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2015) 10/12/14 10/14/14 3.00 Workplace Harassment 6 10/17/14 10/19/14 0.00 IS Security Awareness Training 2014 11/14/14 12/02/14 0.00 Private Company Audit Update 01/07/15 01/07/15 2.50 Annual Audit Training for Government, Higher Education and NFP Auditors 04/07/15 04/08/15 14.50 2014 EBP Audits: Updates, Hot Topics & Workpaper Changes 04/16/15 04/16/15 2.00 Defined Contribution Plan Audit Testing 04/17/15 04/17/15 2.00 EBP Audits: Internal Controls & Use of Service Auditor Reports 04/17/15 04/17/15 1.00 EBP Audits: Investment Identification and Limited Scope Procedures 04/21/15 04/21/15 2.00 SSARS 21 Webcast 05/19/15 05/19/15 1.00 Evaluator Power Hour: Evaluating Effectively using the Crowe Rating Scale 06/17/15 06/17/15 1.00 Raise the Bar on your Performance with Crowe’s New Rating Scale 06/24/15 06/24/15 1.00 Public Company Quarterly Update Webcast 07/07/15 07/07/15 1.00 Current Cybersecurity Hot Topics CPAs Need to Know 07/15/15 07/15/15 1.50 Legislative Review and Changes to Police & Firefighter Pension Law 07/30/15 07/30/15 2.00 An Overview of SOC 1, 2, and 3 Reports 08/28/15 08/28/15 1.50 GASB 67 and GASB 68 Implementation Questions Part One 09/23/15 09/23/15 1.00 Client Experience today and in the future – an expert panel discussion 10/06/15 10/06/15 1.00 PCI: How Are Organizations Limiting Liability and Reducing IT Risk at the Same Time? 10/14/15 10/14/15 1.00 GASB Hot Topics 10/15/15 10/15/15 2.00 The UGG in Action: Fraud Risks and Reporting Requirements Under Federal Grants 11/17/15 11/17/15 1.00 Private Company Auditing Matters Webcast 12/07/15 12/07/15 3.00 Government Accounting Conference 02/12/15 02/13/15 2.00 Local Government Accounting Update Seminar 06/25/15 06/25/15 8.00 GASB Update 05/26/15 05/26/15 2.00 IS Security Awareness Training Spring 2015 05/26/15 06/26/15 0.00 Essentials of Interviewing and Hiring: Conducting an Effective Interview 08/21/15 08/31/15 1.00 Independence: A Comprehensive Review of AICPA, SEC, PCAOB, and GAO Rules (FY16) 09/01/15 09/11/15 1.50 Transitioning into a Project Management Role 11/23/15 12/21/15 2.50 GASB 74 and GASB 75: Other Post-Employment Benefits (OPEB) 02/03/16 02/03/16 1.00 Proposal to Provide External Audit Services City of South Miami 52 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Regina P. Davis CISA, CRISC, PMP – Technology Risk Manager 3399 Peachtree Road NE, Suite 700 Atlanta, Georgia 30326-2832 Direct: 404.442.1632 Fax: 404.442.1616 Regina.davis@crowehorwath.com www.crowehorwath.com Profile Ms. Davis serves as a Technology Risk Manager for Crowe’s attestation clientele providing general controls auditing, application/database/infrastructure controls review, and related special consulting services to clients in the financial services, investment banking, healthcare and manufacturing/distribution industry. Client Focus Services: Internal IT Audits External Financial Audit Support SOx/FDICIA Reviews SSAE16 and SOC Reviews Industries: Financial Services Manufacturing and Distribution Healthcare Public Sector Professional and Industry Experience Ms. Davis’ experience spans thirteen years in performing Information System’s general and application controls in a variety of processing environments from the personal computer to mid- range Unix platforms to large scale mainframe application-based systems. She has managed and completed client Information System General and Application Controls SSAE 16 examinations, IS General Controls reviews, and other information security reviews and then presented the results and recommendations from those reviews to functional managers as well as senior level management. As a Project Management Professional (PMP), she is highly skilled at planning and executing successful audit projects. She also assists with the coordination, scheduling, supervising and reviewing of staff activities, work programs, and reports. She especially enjoys mentoring to Crowe staff to ensure positive client engagements. Education & Certifications  Bachelor’s Degree, Business Management Belhaven University | Jackson, Mississippi  Certified Information Systems Auditor (CISA)  Certified in Risk and Information Systems Control (CRISC)  Project Management Professional (PMP) Proposal to Provide External Audit Services City of South Miami 53 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Continuing Professional Education Regina P. Davis For the period: 03/15/2013 – 03/15/2016 Course Title Start Date End Date CPE SOC Reports: Lessons Learned 05/15/13 05/15/13 1.00 COSO Internal Control: Integrated Framework Update 05/21/13 05/21/13 1.00 Governance Audits 05/21/13 05/21/13 1.00 Effective Time Management: How to make every second count 06/04/13 06/04/13 1.00 The 21st Century Project Manager 06/11/13 06/11/13 1.00 Embracing Mobility: Liberate Employees to work their way 06/13/13 06/13/13 1.00 ERM and Cloud Computing 06/18/13 06/18/13 1.00 Next Generation of Authentication at No Upfront Costs 07/16/13 07/16/13 1.00 Pulse of the Profession 07/30/13 07/30/13 1.00 The Safari of Self Discovery 08/06/13 08/06/13 1.00 Best Practices for Implementing DLP 08/08/13 08/08/13 1.00 Anti-Bribery; Corruption Compliance and Enforcement 08/09/13 08/09/13 3.00 Cloud Security Assessment: A Recognized Methodology 08/13/13 08/13/13 1.00 Enterprise Risk Management 08/13/13 08/13/13 1.00 PA Internal Audit Coverage of Risks to Achieving Strategic 08/14/13 08/14/13 1.00 The Twenty-First Century Project Manager 08/22/13 08/22/13 1.00 Best Practices in Identity Governance 08/22/13 08/22/13 1.00 Sharing Industry Best Practices 08/28/13 08/28/13 1.00 Teams and Teamwork 09/03/13 09/03/13 1.00 The Value of Privileged Identity Governance 09/12/13 09/12/13 1.00 The Atlanta IIA Conference 2013 09/13/13 09/13/13 8.00 Data Analytics in Internal Audit & Organizational Transformation 10/04/13 10/04/13 3.00 IT Portfolio Management 10/09/13 10/09/13 14.00 IT Portfolio Management 10/09/13 10/09/13 14.00 The Impact of Agile/Scrum on Requirements Management 10/22/13 10/22/13 1.00 Standing between the hammer and the anvil 10/30/13 10/30/13 1.00 Integrating Change Management and Project Management 11/05/13 11/05/13 1.00 Are You Branded for Maximum Success 11/06/13 11/06/13 1.00 Kirk vs. Spock - Into the Decision 11/19/13 11/19/13 1.00 ISACA Journal Quiz #146 11/22/13 11/22/13 1.00 ISACA Journal Quiz #149 11/22/13 11/22/13 1.00 ISACA Journal #150 11/22/13 11/22/13 1.00 Is Ethics a ‘Mirage’ or ‘Reality’? 11/27/13 11/27/13 1.00 The Affordable Healthcare Act: What Every Internal Auditor 12/04/13 12/04/13 1.00 Cloud Maturity - How to solve your cloud security challenges 12/04/13 12/04/13 5.00 Internal Controls Over Compliance 12/04/13 12/04/13 1.00 Proposal to Provide External Audit Services City of South Miami 54 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Course Title Start Date End Date CPE Getting on the A-List 12/05/13 12/05/13 1.00 Information Security in Higher Education and Not-for-Profits 12/12/13 12/12/13 1.00 Managing change in an OPM 12/12/13 12/12/13 1.00 The Journey of Expectation Management 12/17/13 12/17/13 1.00 ISACA Journal Quiz #151 12/27/13 12/27/13 1.00 ISACA Journal Quiz #148 12/27/13 12/27/13 1.00 ISACA Journal Quiz #147 12/27/13 12/27/13 1.00 Sr. IT Auditor 12/31/13 12/31/12 5.00 Privacy, big data analytics and the internet of things 01/09/14 01/09/14 1.00 IIA Chapter Meeting - Jan 2014 01/10/14 01/10/14 3.00 ISACA Chapter Meeting 01/17/14 01/17/14 3.00 5 ways to revolutionizing your disaster recovery strategy 02/13/14 02/13/14 1.00 People Centric Communications 02/20/14 02/20/14 1.00 Career Optimization for Project Managers 03/07/14 03/07/14 1.00 How to Mitigate Project Risks 03/07/14 03/07/14 1.00 Got Value? A Value Model for Making Agile Product Decisions 03/07/14 03/07/14 0.75 IIA Chapter Meeting - April 2014 04/04/14 04/04/14 2.50 North America CACS Conference 2014 04/28/14 04/28/14 18.00 Getting Green Done: An Airline Perspective 07/02/14 07/02/14 1.00 Contractors beware – the changing landscape of contractor risk 07/10/14 07/10/14 1.00 IIA Chapter Meeting - July 2014 07/11/14 07/11/14 3.00 Does increasing use of mobile devices necessarily increase risk? 08/14/14 08/14/14 1.00 The Concept of Customer Value 09/04/14 09/04/14 1.00 Measuring Change Impact 09/10/14 09/10/14 1.00 Use of scenarios in developing policies to address CC 09/11/14 09/11/14 1.00 It's a Success! Says Who? 09/16/14 09/16/14 1.00 The Atlanta Conference 09/19/14 09/19/14 8.00 The Leader in the mirror: Trust, Dilemmas and Risks 09/25/14 09/25/14 1.00 Creating Bulletproof Business Cases for Rock-Solid Projects 09/25/14 09/25/14 1.00 International Project Management Day 2014 - Power of the Profession 11/06/14 11/06/14 4.25 IT Audit Program Manager 12/31/14 12/31/14 5.00 Change It Up! 01/13/15 01/13/15 1.00 IIA Chapter Meeting – February 2015 02/13/15 02/13/15 3.00 How to Mitigate Project Risks 02/20/15 02/20/15 1.00 ISACA Journal Quizzes #151-156 03/07/15 03/07/15 6.00 IIA Chapter Meeting – April 04/17/15 04/17/15 2.50 IIA Chapter Meeting – July 07/10/15 07/10/15 3.00 Leadership When the Project Crashes 09/03/15 09/03/15 1.00 Proposal to Provide External Audit Services City of South Miami 55 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Course Title Start Date End Date CPE Avoid Major Mistakes of Organization-Wide Change 09/03/15 09/03/15 1.00 The Atlanta Conference 09/18/15 09/18/15 8.00 Orientation: New Hire 10/05/15 10/06/15 0.00 Information Security Introductory Training 10/04/15 10/06/15 1.50 Independence: A Comprehensive Review of AICPA, SEC, PCAOB, and GAO Rules (FY16) 10/04/15 10/30/15 1.50 Workplace Harassment 6 10/06/15 10/07/15 0.00 New Hire Performance Management Process Overview 12/01/15 12/01/15 0.00 Public Company Audit Update 12/15/15 12/15/15 9.00 IT Audit Manager 12/31/15 12/31/15 5.00 Proposal to Provide External Audit Services City of South Miami 56 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Alexander G. Schmidt CPA – Senior Staff 401 East Las Olas Blvd., Suite 1100 Fort Lauderdale, Florida 33301-4230 Direct 954.202.2945 Fax 954.202.8639 alex.schmidt@crowehorwath.com www.crowehorwath.com Profile Mr. Schmidt is a senior staff member in the Crowe Audit Services group with experience providing assurance services to clients in government. Client Focus Services: Audit Industries: Public Sector Professional and Industry Experience As a senior staff member of the firm, Mr. Schmidt has experience in various engagements, providing audit and assurance services Prior to joining Crowe, he worked as a financial reporting accountant with the Palm Beach Clerk and Comptroller in West Palm Beach, Florida. Professional Affiliations  Florida Institute of Certified Public Accountants  American Institute of Certified Public Accountants Education & Certifications  Master of Science, Accountancy  Bachelor of Science, Accountancy University of Florida | Gainesville, Florida  Certified Public Accountant (CPA) Proposal to Provide External Audit Services City of South Miami 57 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Client Listing County  Miami Dade County Transit  Pinellas County  Broward County Municipal  City of Tampa  City of Lakeland  City of Tarpon Springs  City of Fort Lauderdale  City of Miami Beach Proposal to Provide External Audit Services City of South Miami 58 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Continuing Professional Education Alexander G. Schmidt For the period: 03/15/2013 – 03/15/2016 Course Title Start Date End Date CPE SFA and Single Audit Training/Basic 04/15/13 04/15/13 8.00 IS Security Awareness FY13 05/06/13 05/17/13 0.00 CIA 201: Financial Statement Audit Training 05/13/13 05/16/13 36.50 Introduction to A-133 05/22/13 05/22/13 2.50 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2014) 09/13/13 09/30/13 000 Florida Government Auditing Overview 10/25/13 10/25/13 0.00 Intermediate A-133 Training 05/01/14 05/01/14 3.00 Audit Efficiency Practices and Updates for Government Auditors 05/05/14 05/07/14 22.50 Intermediate A-133 Training 05/15/14 05/15/14 3.00 Implementing the 2013 COSO Framework 05/28/14 05/28/14 1.50 CIA 301: Audit Planning and Completion 06/23/14 06/27/14 40.50 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2015) 09/01/14 09/02/14 3.00 CiRT: Overview of Performance and User Experience Enhancements 09/11/14 09/11/14 0.00 IT Controls in Financial Statement Audits 09/16/14 09/16/14 8.00 Advanced Accounting Topics Webcast 10/14/14 10/14/14 3.00 Firmwide Promotion Academy - Senior Staff Track 11/10/14 11/12/14 20.00 IS Security Awareness Training 2014 11/14/14 12/10/14 0.00 Private Company Audit Update 12/15/14 12/15/14 2.50 IS Security Awareness Training Spring 2015 05/26/15 06/02/15 0.00 Raise the Bar on your Performance with Crowe’s New Rating Scale 05/28/15 05/28/15 1.00 Be Prepared to Respond to the FASB Exposure Draft on Financial Statements of NFP Entities 06/01/15 06/01/15 2.00 Personal and Professional Ethics for Florida CPAs 06/02/15 06/03/15 4.00 CIA 401: Advanced Topics in Accounting and Auditing Part I 06/22/15 06/25/15 31.00 Independence: A Comprehensive Review of AICPA, SEC, PCAOB, and GAO Rules (FY16) 09/01/15 09/29/15 1.50 Client Experience today and in the future – an expert panel discussion 10/06/15 10/06/15 1.00 Private Company Auditing Matters Webcast 12/07/15 12/07/15 3.00 Certified Audit Ongoing Recertification Training (CARO) 12/15/15 12/15/15 8.00 Proposal to Provide External Audit Services City of South Miami 59 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Michael Rozelle Senior Staff 1395 Brickell Avenue, Suite #1150 Miami, Florida 33131 Direct 786.534.0236 Fax 786.534.0251 michael.rozelle@crowehorwath.com www.crowehorwath.com Profile Mr. Rozelle started at Crowe Horwath, LLP in September 2012 and has worked on multiple governmen engagements. Client Focus Services: Audit Services Performance Services Industries: Public Sector Professional and Industry Experience Mr. Rozelle has experience with municipalities, school districts, state agencies, OMB A-133 single audit testing and performance audits. Education & Certifications  Masters of Science, Accountancy Indiana University | Bloomington, Indiana  Bachelors of Science, Finance Ball State University | Muncie, Indiana Proposal to Provide External Audit Services City of South Miami 60 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Client Listing County  Broward County  Miami-Dade Transit  Pinellas County Municipal  City of Fort Lauderdale  City of Miami Beach  City of Coral Springs  City of Lakeland Other  Broward Sheriff’s Office  Port Everglades Proposal to Provide External Audit Services City of South Miami 61 www.crowehorwath.com © Copyright 2016 Crowe Horwath LLP Continuing Professional Education Michael M. Rozelle For the period: 03/15/2013 – 03/15/2016 Course Title Start Date End Date CPE Introduction to A-133 and SFA Audits 04/10/13 04/10/13 9.50 LEA State Compliance Training 04/11/13 04/12/13 17.50 IS Security Awareness FY13 05/06/13 05/14/13 0.00 Introduction to A-133 05/09/13 05/09/13 2.50 Local Government Accounting and Auditing Update Seminar 06/19/13 06/19/13 8.00 LEA State Compliance and Audit Approach Training 09/05/13 09/06/13 9.00 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2014) 09/13/13 10/31/13 2.00 CIA 201: Financial Statement Audit Training 09/16/13 09/19/13 34.00 Florida Government Auditing Overview 10/25/13 10/25/13 8.00 Audit Efficiency Practices and Updates for Government Auditors 04/07/14 04/09/14 20.50 LEA State Compliance Training 04/10/14 04/11/14 18.00 Intermediate A-133 Training 05/01/14 05/01/14 3.00 Intermediate A-133 Training 05/15/14 05/15/14 3.00 CIA 301: Audit Planning and Completion 06/23/14 06/27/14 40.50 Independence: A Comprehensive Review of AICPA and SEC Rules (FY2015) 09/01/14 10/27/14 3.00 LEA State Compliance and Audit Approach Training 09/04/14 09/05/14 8.50 Workplace Harassment 6 09/05/14 09/05/14 0.00 IT Controls in Financial Statement Audits 09/19/14 09/19/14 8.00 Advanced Accounting Topics Webcast 09/30/14 09/30/14 3.00 Firmwide Promotion Academy - Senior Staff Track 11/10/14 11/12/14 14.00 IS Security Awareness Training 2014 11/14/14 12/11/14 0.00 Annual Audit Training for Government, Higher Education and NFP Auditors 04/07/15 04/08/15 14.50 LEA State Compliance Training 04/16/15 04/17/15 17.50 IS Security Awareness Training Spring 2015 05/26/15 06/24/15 0.00 CIA 401: Advanced Topics in Accounting and Auditing Part I 06/22/15 06/25/15 31.00 Upstream Feedback Process/Tool Overview 08/26/15 08/26/15 0.00 Independence: A Comprehensive Review of AICPA, SEC, PCAOB, and GAO Rules (FY16) 09/01/15 12/31/15 1.50 LEA State Compliance and Audit Approach Training 09/02/15 09/03/15 16.50