S. Davis & Assoc City of South Miami - RFP FN-2016-06
RFP # FN-2016-06
EXTERNAL AUDIT SERVICES
Attn: Maria M. Menendez, CCM, City Clerk
AApprriill 1155,, 22001155
Proposer:
S. DAVIS & ASSOCIATES, P.A.
Contact Person: Tanya I. Davis, CPA/Partner
2 S. Biscayne Boulevard, Suite 3200
Miami, Florida 33131
(305) 628-1510
Email: tdavis@sdaviscpa.com
Web: www.sdaviscpa.com
TABLE OF CONTENTS
Transmittal Letter .......................................................................................................................................... 1
About the Firm .............................................................................................................................................. 3
Independence ................................................................................................................................................ 4
License to Practice ........................................................................................................................................ 4
Firm Qualifications and Experience ........................................................................................................ 5-17
Prior Engagements with the City ................................................................................................................ 17
Similar Engagements with Other Government Entities .............................................................................. 18
Specific Audit Approach ........................................................................................................................ 18-25
Identification of Anticipated Potential Audit Problems .............................................................................. 26
Affidavits and Forms .................................................................................................................................. 26
Price Proposal ............................................................................................................................................. 26
Additional Information .......................................................................................................................... 26-27
Attachments
Price Proposal Sheet
Affidavits and Submission Forms
Peer Review
Firms Licenses
Key Personnel Licenses
Client References
HOLLYWOOD
2521 Hollywood Boulevard
Hollywood, Florida 33020
(954) 927-5900
(954) 927-5927 Fax
MIAMI
2 South Biscayne Boulevard, Suite 3200
Miami, Florida 33131
(305) 628-1510
(305) 628-1595 Fax
PALM BEACH
921 Sansbury Way, Suite 203
West Palm Beach, Florida 33411
(561) 547-0545
(561) 253-2747 Fax
TALLAHASSEE
400 N. Adams Street
Tallahassee, Florida 32301
(800) 678-6091
MEMBER
Florida Institute of Certified Public Accountants
American Institute of Certified Public Accountants
S. DAVIS & ASSOCIATES, P.A.
Certified Public Accountants & Consultants
April 15, 2016
Ms. Maria M. Menendez, CMC, City Clerk
City of South Miami
City Hall
6130 Sunset Drive
South Miami, Florida 33143
RE: RFP # FN-2016-06 – External Audit Services
Dear Ms. Menendez and Audit Committee:
We would like to thank you for the opportunity to present the professional qualifications of S.
Davis & Associates, P.A. (“SD&A”) and to express our sincere desire to serve as external
auditors for the City of South Miami (“City”). We understand the scope of services required as
outlined in the Request for Proposals to provide external audit services to the City for two (2)
years beginning with the fiscal year ending September 30, 2016, with the option to extend one
additional year to fiscal year ending September 30, 2018. The audit will be performed in
accordance with auditing standards generally accepted in the United States of America, the
standards for financial audits as set forth in the U.S. General Accounting Office’s (“GAO”)
Government Auditing Standards, the provisions of the U.S. Office of Management and Budget
(“OMB”) Circular A-133, Audits of States, Local Government and Non-Profit Organizations, the
provisions of the Florida Single Audit Act, the Rules of the Auditor General of the State of
Florida, and the Florida Statutes. The engagement will include the audits of 1) the City’s
governmental activities, each major fund and aggregate remaining funds, 2) the General & Police
Pension Plans, 3) the Police 185 Share Plan, and 4) the City’s Community Redevelopment
Agency. We will also perform the federal and state single audits.
We feel that the professionals assigned to the engagement demonstrate one of the best
indications of our commitment to serve the City. To ensure that you receive the highest quality
service in a prompt manner, we have assembled a group of individuals who are well qualified to
serve on the engagement team. We have also included the resumes of the principals to be
assigned to your engagement. SD&A personnel assigned to the team have completed financial,
single and other compliance audits for a vast number of governmental clients. We understand
the business of cities and counties (having performed engagements for both) and, therefore, we
Transmittal Letter
Page 2
are in a unique position to leverage such knowledge for your benefit. We are a Florida firm with
national firm training and experience. The City will be one of our most important clients and
this will bear a direct relation to our responsiveness on any issues, questions or concerns you
may have, and we will spare no effort in delivering timely reports in accordance with the City’s
timetable. We believe the foregoing makes us the best qualified firm to perform your audit
engagements.
Prompt service, timely communications, and the ability to perform in a manner that is beyond
routine are of paramount importance to developing a long-lasting client-auditor relationship. We
feel that such on-going communications will be a key element in our service effort and enable us
to keep properly informed about your operations. We encourage and expect inquiries from the
City regarding other accounting and business matters and will respond on the same day,
whenever possible.
The accompanying proposal reflects our desire to establish a professional relationship with the
City. We thank you, once again, for the opportunity to present this proposal and look forward to
serving you on this engagement. In this proposal process, you will undoubtedly read and hear
much about such things as firm resources and client lists. In the final analysis, however, the
important things are professional experience, quality people and service at a fair price. We
commit to deliver to you on all.
If you have any questions concerning this proposal, which remains in effect for 90 days, wish to
meet any of our team members, or require more information, please call Tanya I. Davis, Partner,
at (305) 628-1510. We look forward to meeting with you in the near future.
Very truly yours,
S. DAVIS & ASSOCIATES, P.A.
By: Tanya I. Davis, CPA, Partner
Page 3
ABOUT THE FIRM
S. Davis & Associates, P.A. (“SD&A”) started as Shaun M. Davis, CPA on March 1, 1991, was
incorporated in the State of Florida as S. Davis & Associates, P.A. on January 30, 1997, and has
become one of the largest minority-owned CPA firms in the southeast United States. We have
made a significant commitment to ensure that the City receives the highest quality and most
responsive service possible. SD&A has performed continuous public accounting services since
our inception. We service a diverse base of private and public sector, small to large size clients,
and provide a full range of audit, accounting, tax, information technology and consulting
services. We have three offices in South Florida and a wealth of experience in the industry as
highlighted in this proposal.
A significant amount of our client base is in the public sector and our practice mix is comprised
of approximately 85% audit, accounting, and tax services and 15% general consulting and
information technology services.
A key aspect of our services is the significant level of partner, manager, and senior involvement
in the engagement. Our engagement partners and manager will be actively involved on site in all
phases of the work. During our scheduled periods of fieldwork, the senior and staff will dedicate
100 percent of their scheduled time at the City. All other team members have been arranged to
ensure our service to you is always responsive.
SD&A’s philosophy is simple: hire the best people, train them well, provide opportunities for
personal and professional growth, and empower them to use their skills creatively to offer
innovative solutions to problems facing business and government. We have made a significant
commitment to ensure that our clients receive the highest quality and most responsive service
possible.
It is the firm’s policy to keep the key engagement team members intact for multi-year
assignments. Although never anticipated, if a change of any personnel should become necessary,
the City will be advised in time for pre-approval of such. Partners are rotated every five years
based on the duration of the contract. This allows us to maintain efficiencies as well as ensure
that the team has a thorough knowledge and understanding of the client and the client’s
environment.
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INDEPENDENCE
The firm should provide an affirmative statement that it is independent of the City of
South Miami as defined by generally accepted auditing standards and the U.S. General
Accounting Office's Government Auditing Standards.
The firm should also list and describe the firm's professional relationships involving the
City of South Miami for the past five (5) years, together with a statement explaining why
such relationships do not constitute a conflict of interest relative to performing the
proposed audit.
In addition, the firm shall give the City of South Miami written notice, within five (5) days
of any professional relationships entered into during the period of this agreement.
SD&A is independent of the City in all matters relating to the audit work both in fact and in
appearance as defined by generally accepted auditing standards and the U.S. General Accounting
Office’s Government Auditing Standards. Our firm also meets the standards of independence as
set forth in the AICPA Professional Standards. SD&A has not provided any services to the City
and we affirm that no member of the firm’s ownership, management or staff currently has a
vested interest in the City. As such, we do not have conflict of interest relative to performing the
proposed financial and single audits. If any professional relationships are entered during the
period of this engagement, however, we will provide written notice to the City within five (5)
days.
LICENSE TO PRACTICE IN FLORIDA
An affirmative statement should be included that the firm and all assigned key
professional staff are properly licensed to practice in Florida.
The firm and SD&A’s partners and managers are properly licensed by the State of Florida to
engage in the practice of independent public accounting and have been providing these services
since its inception. The senior has passed the Uniform CPA exam, is licensed in another state
and is pending reciprocity in Florida. We are a member in good standing of both the American
Institute of Certified Public Accountants (AICPA) and Florida Institute of Certified Public
Accountants (FICPA), and adhere to the AICPA and FICPA codes of professional ethics dealing
with the practice of independent public accounting.
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FIRM QUALIFICATIONS AND EXPERIENCE
The Bidder should state the size of the firm, the size of the firm's governmental audit staff,
the location of the office from which the work on this engagement is to be performed and
the number and nature of the professional staff to be employed in this engagement on a
full‐time basis and the number and nature of the staff to be so employed on a part‐time
basis.
If the Bidder is a joint venture or consortium, the qualifications of each firm comprising the
joint venture or consortium should be separately identified and the firms all must be
certified public accountants in Florida. Provide information on the government auditing
experience of each person, including information on relevant continuing professional
education for the past three (3) year and membership in professional organizations
relevant to the performance of the audit.
SD&A maintains offices in four Florida counties: Miami-Dade, Broward, Palm Beach, and Leon.
The engagement will be coordinated from our Miami-Dade and Broward offices. The Firm’s
South Florida practice, currently, employs 21 full-time, audit and accounting staff. Over 90% of
our South Florida practice consists of clients in the governmental industry.
S. Davis & Associates, P.A
Professional Staff
Classification
Audit Staff
Employee Total No. Male Female
Partner 2 1 1
Manager 2 0 2
Senior 4 1 3
Staff 13 3 10
Total 21 5 16
The senior and staff will be on-site 100% of the time scheduled for the City’s fieldwork. The partners
and manager will be actively involved in all phases of the work, but will be scheduled on-site for
supervision and review, meetings with City personnel and at other times as considered necessary.
SD&A is the sole Bidder. We are not a part of a joint venture or consortium. Resumes of the team
members provide information related to government auditing experience, professional education and
memberships in professional organizations.
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Provide as much information as possible regarding the number, qualifications, experience
and training, including relevant continuing professional education, of the specific staff to
be assigned to this engagement. Indicate how the quality of staff over the term of the
agreement will be assured.
All of our professional staff are degreed accountants with governmental audit and/or accounting
experience. The Firm’s partners and several of our audit staff members have worked in
international accounting firms, governmental entities, and/or major fortune 500 companies.
SD&A brings a wealth of knowledge and new insight to our governmental clients. We stay
abreast of all new and proposed audit and accounting pronouncements and will be prepared to
advise City staff on how best to implement both. (GASB Pronouncement Nos. 72-77, 79 and 82
may affect the City’s financial statements during the term of the audit contract.) In addition, we
will provide informal advice and consultation throughout the year on matters relating to
accounting and financial reporting. We are only a phone call away.
As professionals serving the public sector, we know of no other firm as eminently qualified to
serve the City as our own. Our responsibility is to provide the City with services from which
you receive value and where we establish and maintain a relationship with key members of the
City’s management so that we can be valued business advisors. We will continue to achieve
these objectives and, thus, differentiate ourselves from other accounting firms in the following
ways:
Approach to continuing professional education: Our staff maintains continuing
professional education (“CPE”) credits as required by the AICPA, Government Auditing
Standards (“GAS”) and Florida Board of Accountancy. We attend seminars sponsored
by the AICPA and FICPA and qualifying courses offered by Big Five accounting firms
and local colleges, universities, and professional organizations. Each staff person is
required to have eighty (80) CPE credits, with twenty-four (24) being in governmental
education (satisfying Yellow Book requirements), every two (2) years. We, often exceed
these minimum requirements.
Valuable resources: We firmly believe that the relationship between the City and its
external auditor is one of the more important professional relationships that exist. At the
outset, we foster open communication on a year-round basis. We use our knowledge of
the City’s operations and that of other cities and South Florida counties on a proactive
basis to work closely with management in identifying potential issues and concerns
before they become serious problems. The average tenure of our staff is approximately
10 years. The continuity of the engagement team will be a valuable resource to the City.
SD&A’s audit approach: Our planning phase is designed to provide solutions that are
specifically tailored to the City’s needs. We focus, not only on the audit entity, but also
on the external forces that affect it and its operating procedures for dealing with risks and
Page 7
citizens’ demands. This helps us to gain an understanding of the City’s operations and
internal controls so that we can best determine the nature, timing, and extent of our audit
procedures.
Responsiveness: As a competitive business enterprise, we pride ourselves in responding
to the needs of our clients. This responsiveness is demonstrated by our continued success
at being able to meet specified deadlines and in our responses to other requests from our
clients as well. These requests could be in the form of special reviews needed as a result
of an audit finding or, simply, day-to-day technical questions. Our ability to be
responsive is enhanced by the open communications and good working relationships we
have developed over time.
Professional experience to specifically meet your needs: SD&A audit partners,
managers and seniors spend over 90% of their time serving governmental organizations.
Prompt Service: Prompt service, timely communications, and the ability to perform in a
manner that is beyond routine are of paramount importance to developing a long-lasting
client-auditor relationship. We feel that such on-going communications will be a key
element in our service effort and enable us to keep properly informed about the City’s
operations. We encourage and expect inquiries from the City regarding other accounting
and business manners and will respond on the same day whenever possible.
Community commitment: We are committed to the South Florida community. Our
people are our most valuable resource and they volunteer their time, talent and treasure to
various civic and charitable organizations in Miami-Dade, Broward, and Palm Beach
Counties.
We have assembled our best and brightest governmental specialists to serve on the audit. We
believe that their relevant experience and training are unmatched in South Florida and that they
have the skills and desire to serve the City’s needs. These needs require top talent and maximum
commitment from all professionals who serve the City. We will provide both and look forward
to contributing to help the City achieves its goals.
We will utilize personnel with considerable experience in auditing governmental entities and
other organizations which are required to be audited in accordance with Government Auditing
Standards, OMB Circular A-133, Audits of States, Local Governments and Non-Profit
Organizations and the Florida Single Audit Act.
The engagement partner has overall responsibilities for all work performed for a client and will
be the City’s primary point of contact. Tanya I. Davis, Audit Partner, licensed to practice as a
certified public accountant in Florida, has extensive experience in serving governmental,
nonprofit, and other large, complex, computer-oriented clients. Her project management skills
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will be invaluable on the City's audit. Tanya has over twenty-five years of public accounting
experience, including the financial statement and single audits, and the audits of retirement
systems/pension plans.
The quality review partner has responsibility for quality technical review of your engagement.
Shaun M. Davis, Managing Partner, will serve in this capacity. Shaun is licensed to practice as a
certified public accountant in Florida and also has extensive experience in serving governmental,
nonprofit, and other large, complex, computer-oriented clients. Shaun has over thirty years of
public accounting experience which includes financial statement and single audits, and the audits
of retirement systems/pension plans. In addition to his audit experience, he has participated in
numerous consulting projects that addressed internal controls and financial projections.
The engagement manager maintains continuous control over the engagement through meetings
with clients, review of workpapers and discussions with staff. Senior Manager Heather Sinclair
Young, licensed to practice as a certified public accountant in Florida, will be assigned to your
engagement. She will coordinate the planning, staffing and review process of all workpapers.
She will assume the responsibility of monitoring the progress of the audit and any significant
issues, and will establish and maintain open communication channels with key City personnel,
the engagement partner, and the engagement senior to ensure a smooth transition, smooth
execution and a timely completion of the audit. She has more than twenty years of public
accounting experience. She has considerable experience in the audit of governmental entities
and employee benefit plans.
The engagement senior is responsible for the daily supervision of the audit fieldwork. Sharon
Clayton-Saturne will be assigned to this engagement. Along with Tanya and Heather, she will
devote substantial attention to the planning phase of the audit and, during fieldwork, will devote
100% of her time to the City. She has more than twenty years of private and public accounting
and auditing experience.
The engagement staff will perform audit procedures at the direction of the manager and senior.
We strive to match the interests, abilities, and experience of our staff to each engagement. Staff
assigned to our government services industry engagements receives specific industry training to
prepare them for their assignments.
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Client Service Team Organizational Chart
TANYA I. DAVIS, CPA
Engagement Partner
SHAUN DAVIS, CPA
Quality Review Partner
SHARON CLAYTON-SATURNE
(pending reciprocity for licensure in Florida)
Senior
S. DAVIS & ASSOCIATES, P.A.
Staff
HEATHER SINCLAIR YOUNG, CPA
Engagement Manager
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TANYA I. DAVIS, CPA
Engagement Partner
Professional Experience
Tanya is the partner in charge of auditing and accounting services at S. Davis & Associates, P.A.
and has been with the firm for 19 years. She has over twenty-five years of public accounting
experience, including serving in former positions as Audit Supervisor with Grant Thornton, LLP
and experienced staff with PricewaterhouseCoopers. Tanya has attained pertinent financial
statement audit, single audit and special services engagements experience in the governmental
industry, having performed audits under Government Auditing Standards for 20 years.
Selected Current and Former Governmental Engagements
City of North Miami
City of West Park
City of Lauderhill
City of South Bay
City of Hollywood
City of Dania Beach
City of Lauderhill General Employees Retirement System
City of Dania Beach Police & Firefighters Retirement System
Florida Atlantic Research and Development Authority
Florida Atlantic University Research Corporation
South Florida Regional Planning Council
Broward County, including Supervisor of Elections,
Housing Finance Authority, Health Facilities
Authority and Single Audits
Palm Beach County
South Broward Hospital District
Miami-Dade Public Schools
School Board of Broward County
Professional and Civic Affiliations
Past Chairperson and Board Member, State of Florida Board of Accountancy
Member, Government Finance Offices and City Clerks Association
Member, South Florida Government Finance Officers and City Clerks Association
Member and Past President, Greater Miami Chapter of the National Association of Black
Accountants, Inc.
Past National Vice President, National Association of Black Accountants, Inc.
Page 11
Board Member and Audit Committee Chair, Art & Culture Center of Hollywood
Trustee, Barry University
Leadership Hollywood Alumni
Member of the Florida Institute of Certified Public Accountants (FICPA)
Education & Licensing
Cum Laude Graduate of Barry University with a Bachelor of Science degree in Accounting
CPA licensed to practice in Florida
Continuing Professional Education Last Three Years
Current Continuing Professional
Education (CPE) Hours
Type of CPE CPE Credits
Governmental 103.00
Accounting and Auditing 39.00
Other 33.00
Total 175.00
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SHAUN M. DAVIS, CPA,
Quality Review Partner
Professional Experience
Shaun is the Managing Partner and founder of S. Davis & Associates, P.A. and has over thirty
years of public accounting experience, including serving in his former position as Audit Manager
with Ernst & Young. Shaun has pertinent experience in financial statement audit and single
audit engagements in the governmental and not-for-profit industries. Shaun has over twenty-five
years of experience in auditing governmental clients.
Selected Current and Former Governmental Engagements
City of North Miami
City of West Park
City of Dania Beach
City of Hollywood
City of South Bay
City of Lauderhill
City of Fort Lauderdale
City of Miramar
City of Dania Beach Police & Firefighters Retirement System
South Florida Regional Planning Council
South Broward Hospital District
Miami-Dade Public Schools
School Board of Broward County
Palm Beach School District
Professional and Civic Affiliations
Past Board Member and Past Chairman, State of Florida Board of Accountancy
Member, South Florida Government Finance Officers and City Clerks Association
Past President, Greater Miami Chapter of the National Association of Black Accountants,
Inc.
Member, Broward Workshop
Past Chairman, United Way of Broward County, Inc.
Chariman, Urban League of Broward County
South Florida Super Bowl Host Committee Board Member
Board Member and former Treasurer, Orange Bowl Committee
Board of Governors Member, Florida State University School of Business
Advisory Council Member, Florida State University School of Accounting
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Trustee, Florida Atlantic University
Member of the American Institute of Certified Public Accountants (AICPA)
Member of the Florida Institute of Certified Public Accountants (FICPA)
Price Waterhouse Up & Comers Award Winner
Education & Licensing
Graduate of Florida State University with a Bachelor of Science degree in Accounting.
CPA licensed to practice in Florida and New York
Continuing Professional Education Last Three Years
Current Continuing
Professional Education (CPE)
Hours
Type of CPE CPE Credits
Governmental 40.00
Accounting and Auditing83.00
Other 41.00
Total 164.00
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HEATHER SINCLAIR YOUNG, CPA, MBA
Engagement Manager
Professional Experience
Heather will serve as the engagement manager with over ten years of public accounting
experience, including serving in her former position as Audit Professional with Mair Russell a
corresponding firm of Grant Thornton, LLP. Her pertinent financial statement audit, single audit
and special services experience has been attained in the governmental industry. Heather has over
twenty years of governmental auditing experience.
Selected Current and Former Governmental Engagements
City of Hollywood
City of Dania Beach
City of West Palm Beach
City of Dania Beach Police & Firefighters Retirement System
Palm Beach County
Broward County
South Broward Hospital District
South Florida Regional Planning Council
Miami-Dade Public Schools
School Board of Broward County
Professional and Civic Affiliations
Leadership Hollywood Alumni
Member of the American Institute of Certified Public Accountants (AICPA)
Member of the Florida Institute of Certified Public Accountants (FICPA)
Education & Licensing
Honors Graduate of the University of the West Indies with a Bachelor of Science degree in
Accounting and a Master of Business Administration from Florida International University
CPA licensed to practice in Florida
Continuing Professional Education Last Three Years
Current Continuing Professional
Education (CPE) Hours
Type of CPE CPE Credits
Governmental 82.00
Accounting and Auditing 44.00
Other 4.00
Total 130.00
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SHARON CLAYTON-SATURNE
Engagement Senior
Professional Experience
Sharon is an auditor at S. Davis & Associates, P.A. and has been with the firm for four years.
She has over twenty (20) years of combined public and private experience in the accounting and
audit field, including serving in her former position as an Audit Supervisor with Deloitte &
Touche.
Selected Current and Former Governmental Engagements
City of West Park
City of West Palm Beach
City of South Bay
City of Lauderhill
City of Lauderhill Police & Firefighters Retirement System
Palm Beach County
Florida Atlantic Research and Development Authority
University of Florida
Professional and Civic Affiliations
Fellow with the Institute of Certified Chartered Accountants (ACCA) United Kingdom
Education & Licensing
Graduate of the University of Technology, Kingston, Jamaica, with a Bachelor of Business
Administration in Accounting
Passed the CPA Exam, certified in another state and pending reciprocity in Florida
Continuing Professional Education Last Three Years
Current Continuing Professional
Education (CPE) Hours
Type of CPE CPE Credits
Governmental 96.00
Accounting and Auditing 24.00
Other 16.00
Total 136.00
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Engagement partners, managers, other supervisory staff and specialists may be changed if
those personnel leave the firm, are promoted or are assigned to another office. These
personnel may also be changed for other reasons with the express prior written permission
of the City of South Miami. However, in either case, the City of South Miami retains the
right to approve or reject replacements.
Consultants and firm specialists mentioned in response to this request for proposal can
only be changed with the express prior written permission of the City of South Miami,
which retains the right to approve or reject replacements.
Other audit personnel may be changed at the discretion of the Bidder provided that
replacements have substantially the same or better qualifications or experience.
It is the firm’s policy to keep the key engagement team members intact for multi-year
assignments. We recognize and promote continuity to improve efficiencies on the engagement,
but in the rare event that a change of personnel should occur, we will notify you immediately.
All replacements will have substantially the same or better qualifications or experience, however,
the City reserves the right to approve or reject any replacements.
Page 17
A specific Client Reference List with names, addresses, telephone numbers and email
addresses is a requirement.
Our offices have provided many years of service to the South Florida governmental entities.
Below is a list of selected governmental clients for which we were in lead roles:
* - See reference letters in the attachments section.
PRIOR ENGAGEMENTS WITH THE CITY OF SOUTH MIAMI
List separately all engagements within the last five years, for the City of South Miami by
type of engagement (i.e., audit, management advisory services, other). Indicate the scope
of work, date, engagement partners, the location of the firm's office from which the
engagement was performed, and the name and telephone number of the principal client
contact.
SD&A has not been engaged to perform any services for the City of South Miami in the last five
years or prior.
Entity Contact
City of North Miami*
Margaret Steele Miller Interim Finance Director
mmiller@northmiamifl.gov
(305) 893-6511
776 NE 125th Street
North Miami, FL 33161
City of West Park*
Christopher Wallace, Finance Director
munilytics@mac.com
(954) 903-0712
W. Ajibola Balogun, City Manager
abalogun@cityofwestpark.org
(954) 989-2688
1965 S State Road 7
West Park, FL 33023
Broward County Housing Finance
Authority
Norman Howard
nhoward@broward.org
(954) 357-4925
100 NE 3rd Street
Fort Lauderdale, FL 33301
School Board of Broward County
Patrick Reilly, Internal Auditor
patreilly@browardschools.com
(754) 321-2400
600 SE Third Avenue, 5th Floor
Fort Lauderdale, FL 33301
Florida Research Atlantic
Development Authority*
Andrew Duffell, President & CEO
aduffell@research-park.org
(561) 416-6092
3701 FAU Boulevard, Suite 210
Boca Raton, FL 33431
Page 18
SIMILAR ENGAGEMENTS WITH OTHER GOVERNMENT ENTITIES
For the firm's office that will be assigned responsibility for the audit, list the most
significant engagements (minimum of 5) performed in the last five years that are similar to
the engagement described in this request for proposal. These engagements should be
ranked on the basis of total staff hours equal to or greater than the hours anticipated for
the City South Miami engagement.
SPECIFIC AUDIT APPROACH
The proposal should set forth a work plan, including an explanation of the audit
methodology to be followed, to perform the services required in Section II of this request
for proposal. In developing the work plan, reference should be made to such sources of
information as the City of South Miami’s budget, financial and other management
information.
Due to SD&A’s extensive experience in financial statement and single audits of governmental
entities and our issuance of special reports, we are well-equipped to perform the scope of work
required by the City. Our audit will include a review of internal controls, including testing
Entity Scope of Work Dates
Approximate
Hours Contact
Housing Finance
Authority of Broward
County
Financial Statement
Audit, Bond Audits
1999-2008
2014-present
300-2000
980
Norman Howard
nhoward@broward.org
(954) 357-4925
Broward County Single Audit,
Financial Statement
Audit
2001 – 2010 1400 Evan Lukic, Internal Auditor
elukic@broward.org
(954) 357-7590
City of Lauderhill Financial Statement
Audit, Single Audit
2011 950 Charles Faranda, City Manager
cfaranda@lauderhill-fl.gov
(954) 730-3000
City of South Bay Financial Statement
Audit, Single Audit,
Forensic Audit
2009 - 2012 425 Massih Saadatmand,
Finance Director
saadatmandm@southbaycity.com
(561) 996-6751ext. 11
South Florida
Regional Planning
Council
Single Audit,
Financial Statement
Audit, Forensic
Audit, Consulting,
Tax
1996 – 2001
2006 – present
430
40-425
Isabel Cosio Carballo,
Executive Director
isabelc@sfrpc.com
(954) 985-4416
City of West Park Financial Statement
Audit, Single Audit
2005 - 2015 250 Christopher Wallace,
Finance Director
munilytics@mac.com
(954) 903-0712
W. Ajibola Balogun,
City Manager
abalogun@cityofwestpark.org
(954) 989-2688
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controls over the City’s computer environment, substantive testing of financial statement and
single audits transactions, and controls and compliance testing related to the financial statements
and single audits.
General Requirements and Scope of Services
To meet the requirements of this request for proposals, the audit shall be performed in
accordance with:
Generally accepted auditing standards and Audits of State and Local Governmental Units
issued by the American Institute of Certified Public Accountants (AICPA) and
Government Auditing Standards, as issued by the Comptroller General of the United
States;
Office of Management and Budget Circular No. A-133, Audits of State and Local
Governments and Non-profit Organizations and the Super-Circular;
Florida Single Audit Act;
Rules of the auditor General for the State of Florida Chapter 10.550 and rules relating to
Section 11.45 of the Florida Statutes; and
Other applicable federal, state and local laws or regulations.
Our firm will also:
Review financial and other management information systems; and
Evaluate of the internal control structure by obtaining copies of organizational charts,
budgets, and other relevant documentation, and by conducting interviews with personnel.
Reports to be Issued and Financial Statements Presentations
Following the completion the financial statement audits and the federal and state audits, we shall
issue the reports stipulated in the RFP. We will also make an immediate, written report of all
irregularities and illegal acts of which we become aware to the Finance Director, CRA Director,
Pension Board Members, City Manager, Mayor and City Commission, as appropriate.
We will submit a signed audit report on the fair presentation of the financial statements in
conformity with accounting principles generally accepted in the United States of America no
later than March 10th for the previous fiscal year ending September 30, for the City and its
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pension plans, along with the required reports on internal control structure, compliance with laws
and regulations, and federal and state single audits.
As is the norm for SD&A, we will:
Review the City’s financial report filed with State of Florida Department of Financial
Services and report, in the State Management Letter, that it is in agreement with the
audited financial statements;
Perform Financial Conditions Assessments;
Assist the City in complying with changes in standards and reporting requirements to
remain in conformity with accounting principles generally accepted in the United States
of America, the United States Office of Management and Budget, Florida Statutes and
Rules of the Auditor General; and
Attend all City Commission meetings and pension board meetings deemed necessary to
discuss audit findings, answer questions and present the final audited financial
statements.
Use of the audited financial statements and opinions will not result in additional compensation
unless their use requires additional certification or services on the part of the firm.
SD&A will prepare all Comprehensive Annual Financial Report (“CAFR”) schedules,
statements and notes pursuant to the City submitting accurate governmental and fund trial
balances to the firm. We will not be expected to complete the MD&A, transmittal or statistical
sections of the CAFR.
Financial Statement Formats
In general, the content and format of the City’s financial and single audit reporting packages are
determined by GAAP, GAAS, GASB and GAO standards, OMB Circulars, Florida Auditor
General Requirements and the State of Florida Single Audit Act, if applicable. Within these
guidelines, however, reports should provide information in the most appropriate manner for
internal decision-making and public disclosure. We will discuss the format of the financial
statements during the beginning of the audit process and will continue this discussion for any
revisions necessary through financial statement issuance.
Smooth Audit
We believe we have an excellent record of successful audits for governmental engagements.
Furthermore, a successful audit depends on effective communication between the City and your
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independent auditors. We will invest a considerable amount of time before we begin the
fieldwork to ensure effective planning. We invite you to participate in the planning process so
that we can agree on an appropriate audit plan which would render an efficient audit and timely
report issuance.
Throughout fieldwork, we will conduct weekly status update meetings with City personnel. We
will require the assistance of City personnel to prepare audit schedules and confirmations, follow
up on confirmation requests, locate audit support documentation, provide data requested, and
inform us of any issues or concerns they are aware of. A preliminary list of items requested will
be provided to the City prior to interim work with a revised list to be provided as we gain a better
understanding of the City.
We have audited similar entities for many years and expect to continue our trend of timely and
successful audits. SD&A will provide the City with a high quality and efficient audit.
a. Proposed segmentation of the engagement.
Our audit approach will allow for a smooth and seamless transition. We will perform the audits
in two (2) primary phases: Phase I – Planning and Interim and Phase II – Final Year End Work
through Submission. Our interim and year-end work will, both, involve updating and completing
our audit of the data used to test balances and compliance, and the completion and rendering of
our report. As a result of inquiries during Phases I and II, the majority of the accounting and
reporting problems will have been identified during the planning and interim phase, the
completion of the engagement will be efficient and our report will be issued and distributed prior
to the established deadlines.
b. Level of staff to be assigned to each proposed segment of the engagement.
From partner to staff, all personnel levels will be assigned to each segment of the audit. The
engagement partner, manager and senior will, primarily, be responsible for interim work
including preliminary review and planning, with some assistance from staff. Senior and staff will
spend 100% of their schedule time performing year end fieldwork. During this time, partners and
the manager will be on-site for supervision and review and for client meetings as needed.
Partners, the manager and the senior will all be heavily involved in year end reporting with the
assistance of staff. Partners’ time can be arranged to participate in all meetings and conference
calls deemed necessary to answer questions and resolve any issues that may arise during the
performance of the audit.
c. Sample size and the extent to which statistical sampling is to be used in the
engagement.
We will conduct an evaluation of the internal control structure, accounting system and fraud risk.
Based on the conclusions reached, we will determine the timing and extent of the specific
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procedures to be performed, including the use of statistical sampling methods, and coordinate
implementation thereof with the activities of the City. We will determine the applicable laws,
regulations, contract and grant agreements through discussions with key personnel, review of
current year and prior year monitoring and financial reports, and any other relevant information
that comes to our attention during the engagement. Using information gained from the
aforementioned, coupled with a review of your general ledger, we will plan risk-based financial
and single audits and develop our audit programs. The financial statement audit will include tests
of account balances, tests of significant and effective controls, and tests of applicable laws,
regulations, contracts and agreements. Tests performed for the single audit are compliance in
nature, and will follow federal and state guidelines. Sample sizes for substantive testing and
tests of account balances will be determined by our risk assessments, the dollar value of the total
population, and the level of assurance desired. Sample sizes for tests of controls and compliance
of both financial and single audit related items will typically range from 25 to 40 items based on
risk assessments and the level of assurance desired. Statistical sampling may be used to test all
significant audit areas except cash and debt. Through the use of sampling, we gain audit
satisfaction on 100% of the high risk and medium risk audit areas in a very efficient manner.
d. Extent of use of EDP software in the engagement.
Our approach will be based on a thorough, up-to-date understanding of the accounting and
compliance issues and the operations thereof. The approach directly links governmental industry
regulations, business environmental factors, analytical review results, and our internal control
evaluation to specific accounts and transactions. We provide all staff with laptop computers that
use up-to-date auditing software, which enables them to audit client records in a timely and
efficient manner. We will utilize our consulting and information technology resources as
deemed necessary in auditing your computer environment as it specifically relates to significant
audit areas, to further enhance the timeliness and efficiency of your audit. Through the use of
information technology tools, the audit team will assess risk related to your computer
environment, and evaluate and test your pertinent computer systems, including physical controls.
We use recognized leading audit software tools to perform computer-assisted auditing techniques
to clerically test and age data files, statistically select audit samples, and test calculations as well
as to stratify data and perform exception reporting.
e. Type and extent of analytical procedures to be used in the engagement.
We will perform analytical review procedures based on expectations we’ve developed from
gaining an understanding of your operations which will, primarily, compare:
1) current and prior year account balances – interim and year end;
2) current year balances to budget – interim and year end; and
3) current and prior year financial statement line items – year end.
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We may also perform additional analytical procedures on specific account balances and cycles.
Based on the results of the City’s FYE 2014 audit, it is likely that analytical procedures may be
performed during the audit of the following areas based on the results of risk assessments
performed:
Receivables – including charges for services, fees, property taxes, grants,
allowances, aging schedules;
Capital assets – including accumulated depreciation/depreciation expense;
Notes receivable – including interest income;
Debt – including interest expense;
Revenues – including charges for services and property and utility taxes; and
Expenditures – including payroll and other areas deemed necessary based on
detailed review of the City’s general ledger trial balance and our understanding of
the City.
f. Approach to be taken to gain and document an understanding of the City of South
Miami’ internal control structure.
In order to gain and document our understanding of internal controls, the following procedures
will be performed, at a minimum:
Review of documents, including but not limited to operations manuals,
administrative procedures, personnel policy manuals, budgets and
outlining the process and procedures of the City,
To the extent applicable, preparation of questionnaires to elicit written
responses to document internal control processes and/or forms prior to the
conducting of staff interviews,
Interviews of staff, including management, and other personnel involved
in the operations of the City,
Documentation of unwritten procedures performed by personnel obtained
during interviews,
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Comparison of written and unwritten process and procedures, and
Performance walk-throughs.
g. Approach to be taken in determining laws and regulations that will be subject to audit
test work.
After meeting with the City management, understanding contracts rules of law and industry
guidelines referenced in the documents, we will take additional steps to ensure that those federal,
state and local laws and rules that are applicable to the scope will be included in testing
procedures. We keep abreast of laws and regulations relating to municipalities. We will review
applicable Florida Statutes, Rules of the Auditor General, city ordinances and other documents,
and rules and regulations of regulating and authoritative bodies, to determine those rules, laws
and regulations applicable to the City’s audit testing.
h. Approach to be taken in drawing audit samples for purposes of tests of compliance.
See “c” on pages 21-22.
i. Approval to be taken in seeking issues to be reviewed from City Staff, elected officials
and other appropriate individuals.
All items for review will be submitted to the appropriate level(s) of City finance personnel.
These items may include proposed adjusting journal entries, proposed and final management
letter comments, the resolution of audit and accounting issues, and in some instances, the results
of audit tests performed. Additional approval and/or assistance in resolving audit issues may,
then, be taken to the City Manager or representative. Elected officials will be apprised of all
matters involving irregularities, including fraud or potential fraud.
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Meeting Your Deadlines
The table below follows charts a course for a successful and efficient audit that enables us to
meet and deliver timely reports.
Proposed Timetable
July Aug Nov Dec Jan
Feb
March April
Planning
Systems Evaluation
Understanding and Testing
Internal Controls
Detailed Audit Plan
Progress Conferences
Interim Substantive Testing
Circulation of
Confirmations
Year End Substantive and
Single Audit Testing
Exit Conference
Preparation of Financial
Statements, Supporting
Schedules, and
Management Letter
Presentation of Draft
Auditor’s Reports,
Financial Statements, and
Single Audit Management
Presentation of Auditor’s
Reports and Financial
Statements to Commission
Preparation of the Data
Collection Form
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IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT PROBLEMS
The proposal should identify and describe any anticipated potential audit problems, the
firm's approach to resolving the problem and any special assistance that will be requested
from the City of South Miami.
Currently, we do not anticipate any audit problems. However, due to the nature of auditing,
problems may arise during the audit process. Based on the level of importance we give to the
planning/preliminary phase, we expect that the majority of audit concerns will be identified
during this phase and resolved well before the completion of year end work. Our firm is
committed and will be able to resolve any issue that may arise in order to present a quality report
on time.
AFFIDAVITS AND FORMS
Each firm is required to complete the City of South Miami Disclosure Affidavit and the
Florida Statute Public Entity Crime Form. (See attached Forms)
See attachment section.
PRICE PROPOSAL
We strive to keep our fees at a reasonable level consistent with the highest professional
standards. We will use the City’s personnel as a resource in an effort to curtail costs by
providing audit schedules and retrieving requested documentation to the extent practical. In light
of the structure of SD&A and because we understand how the national, state and local declining
economies have impacted all governmental entities, our proposed audit engagement fees will be
discounted. No indirect costs or out of pocket expenses will be billed to the City.
ADDITIONAL INFORMATION
Peer Review
SD&A participates in the AICPA and FICPA peer review program and we receive independent
technical reviews of selected governmental engagements by a third party as part of our quality
control program. Our last peer review was performed for the year ended November 30, 2014 and
included the audit of a governmental entity. We have received a “PASS” (formerly called an
unqualified opinion) on our quality review program since the Firm’s inception and including the
results of our most recent review. Our most recent peer review is in the process of being
approved by the FICPA, therefore, we have included our peer review report for the year ended
November 30, 2011 (which also included a governmental entity) and a letter from the FICPA
stating that our 2014 review is pending approval.
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Retention of Workpapers
In accordance with the Firm policy, workpapers and reports will be retained for five (5) years. If
requested in writing by the City, certain federal and state agencies and certain professional
regulating organizations, the retention period will be extended. Successor auditors will be
allowed to review workpapers relating to matters of continuing accounting significance and the
Firm will answer successor auditor’s reasonable inquires upon the written request of the District.
Firm’s Litigation
SD&A is not involved in litigation or regulatory actions and is not aware of any such actions that
may be pending.
Commitment to Affirmative Action
S. Davis & Associates, P.A. is an Equal Opportunity Employer. We have established an equal
opportunity plan to ensure that we make employment opportunities available to members of
minority groups. It is the policy and practice of the firm to recruit, hire and promote employees
without discrimination based on race, color, sex/sexual orientation, national origin, religion, or
handicap.
Drug Free Policy
SD&A is committed to protecting the safety, health and well being of all employees and other
individuals in our workplace. We recognize that alcohol abuse and drug use pose a significant
threat to our goals. We have established a drug-free workplace program that balances our respect
for individuals with the need to maintain an alcohol and drug-free environment.
ATTACHMENTS
March 24, 2016
S. Davis & Associates, PA
2521 Hollywood Blvd
Hollywood, FL 33020
To Whom It May Concern:
We are administering the peer review of S. Davis & Associates, PA and as of the
date of this letter we can provide the following information as related to the peer
review.
The peer review working papers were received on December 21, 2015.
The date the review is expected to be presented to a RAB is April 21, 2016
Upon completion of the review, an acceptance letter will be issued to the firm by
the Florida Institute of CPAs Peer Review Committee.
Please feel free to contact us with any questions or concerns.
Sincerely,
Paul N. Brown, CPA, CGMA
Director of Technical Services