10-06-09 Item 11South Miami
AA- Amedca city
1 I
N;Ep CITY OF SOUTH MIAMI
1927 O
OFFICE OF THE CITY MANAGER
` INTER - OFFICE MEMORANDUM 2001
To: The Honorable Mayor & Members of the City Commission
Via: W. Ajibola Balogun, City Manager
From: Matilde G. Menendez, Finance Director
Date: October 6 2009 Agenda Item No.:
Subject: Financial Audit Services Contract Extension
Request: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
SOUTH MIAMI, FLORIDA AUTHORIZING THE CITY MANAGER TO ISSUE A
LETTER TO RODRIGUEZ, TRUEBA & CO., P.A. CONFIRMING A ONE -YEAR
EXTENSION OF THE NOVEMBER 6TH, 2007 AUDIT CONTRACT, PROVIDING
AN EFFECTIVE DATE
Background: Rodriguez, Trueba & Co., P.A has been the City's financial auditor for two
consecutive years. Rodriguez, Trueba & Co., P.A were selected thru a RFP
(Request for Proposal) process.
In accordance with Resolution No. 186 -07 -12571 approving the initial contract,
the contract could be extended for an additional year. During the past two years,
Rodriguez, Trueba & Co., P.A satisfactorily met all requirements of the original
contract. Rodriguez, Trueba & Co., P.A confirmed that the audit fee will remain
the same as in the prior two years.
In order to meet the requirements for the Certificate of Achievement in Financial
Reporting for the City's Fiscal Year ended 9/30/09, the audited financial
statements most be submitted no later than March 31, 2010. To accomplish this
task the City must begin the audit process in October 2009.
Recommendation: Authorizing the City Manager to issue a one year contract extension to
Rodriguez, Trueba & Co., P.A. for Financial Audit Services.
Backup Documentation:
❑ Proposed Resolution
❑ Proposed Audit Contract
❑ Original Contract dated November 15, 2007
❑ Resolution No. 186 -07 -12571
1
2
RESOLUTION NO.:
c
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF SOUTH
MIAMI, FLORIDA AUTHORIZING THE CITY MANAGER TO ISSUE A LETTER TO
RODRIGUEZ, TRUEBA & CO., P.A. CONFIRMING A ONE -YEAR EXTENSION OF THE
NOVEMBER 6TH, 2007 AUDIT CONTRACT, PROVIDING AN EFFECTIVE DATE
WHEREAS, by Resolution No. 186 -07- 12571, the City Commission authorized the execution of a
audit contract with Rodriguez, Trueba & Co., P.A. ( "Auditor"); which contract was approved on November
6, 2007; and
WHEREAS, the November 6, 2007 contract was for two years; and
WHEREAS, the both the City and the Auditor desire to extend the contract for an additional one
year term, as provided for in Resolution 186 -07- 12571; and
WHEREAS, the City Commission authorizes the City Manager to issue a letter to the Auditor
confirming a one -year extension to the November 6, 2007 contract.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OT THE
CITY OF SOUTH MIAMI, FLORIDA THAT:
Section 1: The City Commission authorizes the City Manager to issue a letter to Rodriguez,
Trueba & Co., P.A., confirming a one -year extension of the November 6, 2007 contract.
Section 2: The attached exhibit is incorporate by reference into this resolution.
PASSED AND ADOPTED this day of
ATTEST:
CITY CLERK
READ AND APPROVED AS TO FORM
CITY ATTORNEY
Include File Name and Path
APPROVED:
MAYOR
COMMISSION VOTE:
Mayor Feliu:
Vice Mayor Beasley:
Commissioner Newman:
Commissioner Palmer:
Commissioner Sellars:
11! LIZ! �
12t)[7ltlGlll:'7.,'I l�lllzliA & CO-PA
CERTIFIED PUBLIC ACCOUNTANTS
October 1, 2009
W. Ajibola Balogun - City iVlanager
City of South IvItarni
6130 Sunset Drive
South Miami, F L 33143
Dcar. 'Mr. Balo-urt:
We are pleased to confirm our understanding of the services we are to provide the City of South Nflimi (the "City ")
as of and for the year ending September 30, 2009. We will audit the financial statements of the governmental
activities, the business -type activities, each major fund, and the aggregate remaining fund information, which
collectively comprise the entity's basic financial statements of the City of South Miami as of and for the year ending
September 30, 2009. The document we submit to you will include the following supplementary information
required generally accepted accounting principles that will be subjected to certain limited procedures but will not be
audited:
1. Management's discussion acid analysis.
2. Budgetary comparison sclTedu [es.
3. . GAS required - Supplementary pension information
Also the document we submit to you will include the following additional information that will be subjected to file
auditing procedures applied in our audit of the financial statements upon which we will provide an opinion in
relation to the Basic financial statements.
1. Combined and individual non major fund financial statements.
2. Schedule of expenditures of fcderal awards.
.Audit Objectives
The objective of' our audit is the expression of opinions as to whether your basic financial statements are fairly
presented, in all material respects, in conformity with U.S. g =enerally accepted accounting principles and to report on
the fairness of the additional informational information referral to in the first paragraph when taken as a whole. The
objective also includes reporting on:
• Internal control related to the financial statements and compliance with la-vs?s, regulations, acid the provisions
of contracts or grant agreements, noncompliance with which could have a material effect on the financial
statements in accordance with Goiernifterrt 1ltr(litirig Statidai'(ls.
• Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance with
laws, reMIlations, and the provisions of contracts of grant agreetents that could Have. a direct and material
effect on each major program in accordance with the Single Audit Act Amendments of 1996 and ON IM
Circular A -133, .Audits of .gale . Local Govei-nments, and Aeon- Profit Oi-ganimllon.
.. 0-
Doral Office-1985 MN 88th Court, Suite 101, Ooral, FL 33172 . Phone: 305- 593 -2644 • Fax: 305 -593 -0390
Miami Lakes Office:8040 NW 155th Street, Suite 206, Miami Lakes, FL 33016 • Phone: 305 - 779 -1120 • Fax: 305- 779 -1121
Wvnv.tfc- cpa.com
Member of the American Institute of Certified Public Accountants • Member of the Florida institute of Certified Public Accountants
W. Ajibola Balogun, City Manager
City of South Miami, Florida
Page 2
The reports on internal control and compliance will each include a statement that the report is intended for the
information and use of the audit committee, management, specific legislative or regulatory bodies, federal and
state awarding agencies, and if applicable , pass - trough entities and is not intended to be and should not be used
by anyone other than these specified parties.
Our audit will be conducted in accordance with U.S. generally accepted auditing standards and the standards for
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States, the Single Act Amendments of 1996, the provisions of OMB Circular A -133, Sections 218.39 and 215.97
of Florida Statutes, Chapter 10.350 of the Rules of the Auditor General of the State of Florida, and the Florida
Single Act and will include tests of the accounting records, a determination of major program(s) in accordance
with Circular A -133, and other procedures we consider necessary to enable us to express such an opinion and to
render the required reports. If our opinion on the financial statements or the Single Audit compliance opinion is
other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to
complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or
may not issue a report as a result of this engagement.
Management Resaonsibilities
The management of the City of South Miami is responsible for establishing and maintaining internal control and
for the compliance with the provisions of applicable laws, regulations, contracts, agreements, and grants. In
fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits
and related costs of the controls. The objectives of internal control are to provide management with reasonable,
but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that
transactions. are executed in accordance with management's authorizations and recorded properly to permit the
preparation of financial statements in accordance with U.S. generally accepted accounting principles, and the
federal a%yard programs and state projects are managed in compliance with applicable laws and regulations and
the provisions of contracts and grant agreements.
Management is responsible for malting all financial records and related information available to us including any
significant vendor relationships in which the vendor has the responsibility for program compliance. We
understand that you will provide us with such information required for our audit and that you are responsible for
the accuracy and completeness of that information. We will advise you about appropriate accounting principles
and their application and will assist in the preparation of your financial statements, including the schedule of
expenditures of federal awards, but the responsibility for the financial statements remains with you. As part of our
engagement we may propose standard, adjusting, or correcting journal entries to your financial statements. You
are responsible for reviewing the entries to your financial statements.- You are responsible for reviewing the
entries and understanding the nature of any proposed entries and the impact they have on the financial statements.
That responsibility includes the establishment and maintenance of adequate records and effective internal control
over financial reporting and compliance, the selection and application of accounting principles, and the
safeguarding of assets. Management is responsible for adjusting the financial statements to correct material
misstatements and for confirming to us in the representation letter that the effects of any uncorrected
misstatements aggregated by us during the current engagement and pertaining to the latest period presented are
immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
W. Ajibola Balogun, City Manager
City of South Miami, Florida
Page 3
You are responsible for the design and implementation of programs and controls to prevent and detect fraud, and
for informing us about all known or suspected fraud, or illegal acts affecting the government involving (1)
management, (2) employees who have significant roles in internal control, and (3) others where the fraud could
have a material effect on the financial statements. You are also responsible for informing us of your knowledge of
any allegations of fraud or suspected fraud or illegal acts affecting the City of South Miami received in
communications from employees, former employees, grantors, regulators, or others. In addition, you are
responsible for identifying and ensuring that the City of South Miami complies with applicable laws and
regulations and for taking timely and appropriate steps to remedy any fraud, illegal acts, violations of contracts or
grant agreements, or abuse that we may report. Additionally, as required by OMB Circular A -133, it is
management's responsibility to follow up and take corrective action on reported audit findings and to prepare a
summary schedule of prior audit findings and a corrective action plan. The summary schedule of prior audit
findings should be available for our review by the end of December of each year.
As part of the audit, we will prepare a draft of your financial statements, schedule of expenditures of federal
awards and state financial assistance, and related notes. In accordance with Government Auditing Standards, you
will be required to review and approve those financial statements prior to their issuance and have a responsibility
to be in a position in fact and appearance to make an informed judgment on those financial statements. Further,
you are required to designate a qualified management -level individual to be responsible and accountable for
overseeing our services.
Audit Procedures — General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements; therefore, our audit will involve judgment about the number of transactions to be examined and the
areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about
whether the financial statements are free of material misstatement, whether from errors, fraudulent financial
reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributable to the
City of South Miami or to acts by management or employees acting on behalf of the City of South Miami.
Because the determination of abuse is subjective, Government Auditing Standards do not expect auditors to
provide reasonable assurance of detecting abuse. As required by the Single Audit Act Amendments of 1996 and
OMB Circular A -133, our audit will include test of transactions related to major federal award programs for
compliance with applicable laws and regulations and the provisions of contracts and grant agreements. Because an
audit is designed to provide reasonable assurance, but not absolute assurance and because we will not perform a
detailed examination of all transactions, there is a risk that material misstatements or noncompliance may exist
and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of
laws or governmental regulations that do not have a direct and material effect on the financial statements or major
programs. However, we will inform you of any material errors and any fraud that comes to our attention. We will
also inform you of any violations of laws or governmental regulations that come to our attention, unless clearly
inconsequential. We will include such matters in the reports required for a Single Audit. Our responsibility as
auditors is limited to the period covered by our audit and does not extend to matters that might arise during ant
later periods for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts,
and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain
other assets and liabilities by correspondence with selected individuals, creditors and financial institutions. We
will request written representations from your attorneys as part of the engagement, and they may bill you for
responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from
you about the financial statements and related matters.
W. Ajibola Balogun, City Manager
City of South Miami, Florida
Page 4
Audit Procedures — Internal Controls
In planning and performing our audits, we will consider the internal control sufficient to plan the audit in order to
determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinions on
the City of South Miami's financial statements and on its compliance with requirements applicable to major
programs.
We will obtain an understanding of the design of the relevant controls and whether they have been placed in
operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain
controls that we consider relevant to preventing and detecting errors and fraud that are material to the financial
statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance
matters that have a direct and material effect on the financial statements. Tests of controls relative to the financial
statements are required only if control risk is assessed below the maximum level. Our tests, if performed, will be
less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be
expressed in our report on internal control issued pursuant to Government Auditing Standards.
As required by OMB Circular A -133 and the Florida Single Audit Act, we will perform tests of controls to
evaluate the effectiveness of the design and operation of controls that we consider to preventing or detecting
material noncompliance with compliance requirements, applicable to each of the City's major federal award
programs and state projects. However, our tests will be less in scope than would be necessary to render an opinion
on these controls and accordingly, no opinion will be expressed in our report in internal control issued pursuant to
OMB Circular A -133 or the Florida Single. Audit Act.
An audit is not designed to provide assurance on internal, control or to identify reportable conditions. However, we
will inform the governing body or audit committee of any matters involving internal control and its operation that
we consider to be reportable conditions under standards established by the American institute of Certified Public
Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in
the design or operation of the internal control that, in our judgment, could adversely affect the entity's ability to
record, process, summarize, and report financial data consistent with the assertions of management in the financial
statements. We will also inform you of any non - reportable conditions of other matters involving internal control, if
any, as required by Government Auditing Standards and OMB Circular A -133 and the Florida Single Audit Act.
Audit Procedures -- Compliance
Our audit will be conducted in accordance with the standards referred to in the section titled Audit Objectives. As
part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we
will perform tests of the City of South Miami's compliance with applicable laws and regulations and the provisions
of contracts and agreements, including grant agreements. However, the objective of those procedures will no be to
provide an opinion on overall compliance and we will not express such an opinion in our report on compliance
issued pursuant to Government Auditing Standards.
OMB Circular A -133 requires that we also plan and perform the audit to obtain reasonable assurance about
whether the auditee has complied with applicable laws and regulations and the provisions of contracts and grant
agreements applicable to major programs. Our procedures will consist of the applicable procedures described in the
OMB Circular A -133 Compliance Supplement for the types of compliance requirements that could have a direct
and material effect of each of the City of South Miami's major programs. The purpose of those procedures will be
to express an opinion on the City of South Miami's compliance with requirements applicable to each of its major
programs in our report compliance issued pursuant to OMB Circular A -133 and the Florida Single Audit Act.
W. Ajibola Balogun, City Manager
City of South Miami, Florida
Page 5
Audit Administration. Fees, and Other
We understand that your employees will prepare all cash or other confirmations we request and will
locate any documents selected by us for testing.
At the conclusion of the engagement, we will complete the appropriate section of and sign the Data
Collection Form that summarizes our audit findings. We will provide copies, as required, of our reports to
the City; however, it is management's responsibility to submit the reporting package (including financial
statements, schedule of expenditures of federal awards, summary schedule of prior audit findings,
auditor's reports, and a corrective action plan) along with the Data Collection Form to the designated
federal clearinghouse and, if appropriate, to pass - through entities. The Data Collection Form and the
reporting package must be submitted within the earlier of 30 days after receipt of the auditor's reports on
nine months after the end of the audit period, unless a longer period is agreed to in advance by the
cognizant or oversight agency for audits. At the conclusion of the engagement, we will provide
information to management as to where the reporting packages should be submitted and the number to
submit.
The audit documentation for this engagement is the property of Rodriguez, Trueba & Co., P.A. and
constitutes confidential information. However, pursuant to authority given by law or regulation, we may
be requested to make certain audit documentation available to cognizant or its designee, a federal agency
providing direct or indirect funding, or the U.S. Government Accountability Office for purposes of a
quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will
notify you of any request. If requested, access to such work papers will be provided under the supervision
of our personnel. Furthermore, upon request, we may provide copies of selected audit documentation to
the aforementioned parties. These parties may intend, or decide, to distribute the copies or information
contained therein to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of three years after the date
the auditor's report is issued or for additional period requested by Grantors. If we are aware that a federal
awarding agency, pass - through agency, or auditee is contesting an audit finding, we will contact the
party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.
We expect to begin our audits during October 2009 and we will issue our reports no later than March 31,
2010. Our fee for these services will be at our standard hourly rates plus out -of- pocket costs (such as
report reproduction, word processing, postage, travel, copies, telephone, etc.) except that we agree that
our gross fee, including expenses, will not exceed S35,525. The fee for the Federal and State Single Audit
will approximate $7,500, but it may vary if programs and Federal Awards change materially from the
prior years. This is based on the single audit expenditures not exceeding 2 million dollars. Our standard
hourly rates vary according to the degree of responsibility involved and the experience level of the
personnel assigned to your audit. Our invoices for these fees will be rendered each month as work
progresses and are payable on presentation. The above fee is based on anticipated cooperation from your
personnel and the assumption that unexpected circumstances will not be encountered during the audit. If
significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before
we incur the additional costs. In the event either party claims a breach of any term of this engagement, the
dispute first shall be submitted to voluntary mediation. If this is unsuccessful, then the dispute will be
brought to binding arbitration conducted under the rules then prevailing of the American Arbitration
Association in the County where the City is situated, and the judgment or award of the arbitration shall be
binding and conclusive upon the parties and may be entered in any court having proper jurisdiction.
W. Ajibola Balogun, City Manager
City of South Miami, Florida
Page 6
Government Auditing Standards require that we provide you with a copy of our most recent external peer
review report and any letter of comment, and any subsequent peer review reports and letters of comment
received during the period of the contract. Our 2007 peer review report accompanies this letter.
We appreciate the opportunity to be of service to the City of South Miami and believe this letter
accurately summarizes the'significant terms of our engagement. If you have any questions, please let us
know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed
copy and return it to us.
Sincerely,
6
Carlos M. Trueba CPA
Rodriguez, Trueba & Co., CPA
RESPONSE:
This letter correctly sets forth the understanding of the City of South Miami, Florida.
Lo
Title:
Date:
OCARI7, GITLIN
& ZOMERFELD, LLP
Certified Public Accountants & Consultants
To the Partners of
Rodriguez, Trueba & Co., P.A.
999 Ponce de Leon Blvd.
Suite 1045
Coral Gables, FL 33134
Tel 305.444,8288
Fax a05.444.8280
www.ogz- cpa.com
We have reviewed the system of quality control for the accounting and auditing practice of
Rodriguez, Trueba & Co., P.A. (the firm) in effect for the year ended December 31, 2007. A
system of quality control encompasses the firm's organizational structure, the policies
adopted and procedures established to-provide it with reasonable assurance of conforming
with professional standards. The elements of quality control are described in the Statements
on Quality Control Standards issued by the American Institute of CPAs (AICPA). The firm
is responsible for designing a system of quality control and complying vlith it to provide the
firm reasonable assurance of confornung with professional standards in all material respects.
Our responsibility is to express an opinion on the design of the system of quality control and
the firm's compliance with its system of quality control based on our review.
Our review, was conducted in accordance with standards established by the Peer Review
Board of the AICPA. During our review, we read required representations from the firm,
interviewed firm personnel and obtained an understandings of the nature of the firm's
accounting and auditing practice, and the design of the f`irm's system of quality control
sufficient to assess the risks implicit in its practice. Based on our assessments, we selected
engagements and administrative files to test for conformity with professional. standards and
compliance with the firm's system of quality control. The engagements selected represented
a reasonable cross - section of the firm's accounting and auditing practice with emphasis on
hi-her -risk cngagements. Prior to concluding the review, we reassessed the adequacy of the
scope of the peer review procedures and met.with firm management to discuss the results of
our review. We believe that the procedures we performed provide a reasonable basis for our
opinion.
In per.fonning our review, we obtained an understanding of the system of quality control for
the firm's accounting and auditing practice. In addition, we tested compliance with the
fist's quality control policies and procedures to the extent we considered appropriate.
These tests covered the application of the firm's policies and procedures on selected
engagements. Our review was based on selected. testis therefore it would not necessarily
detect all weaknesses in the system of quality control or all instances of noncompliance with
it. There are inherent limitations in the effectiveness of any system of quality control and
therefore noncompliance with the system of quality control may occur and not be detected.
Projection of any evaluation of a system of quality control to future periods is subject to the
risk that 'the system of quality control may become inadequate because of changes in
conditions, or because the degree of compliance with the policies or procedures may
deteriorate.
Members of:
American Instilulo of r1anda Institute of National Association of
Certified Pubhc Accountants Coruhr_d Public Accountants Certified Valuation Analysts
Rodriguez, Trueba & Co., P.A.
Page 2
In our opinion, the system of quality control for the accounting and auditing practice of
Rodriguez, Trueba & Co., P.A. in effect for the year ended December 31, 2007, has been
designed to meet the requirements of the quality control standards for an accounting and
auditing practice established by the AICPA and was complied with during the year then
ended to provide the firm with reasonable assurance of conforming with professional
standards.
As is customary in a system review, we have issued a letter under this date that sets forth
comment that were not considered to be of sufficient significance to affect the opinion
expressed in this report.
&441 44 g 3 lip
July 21, 2008
RESOLUTION NUMBER: 186 -07 -12571
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF SOUTH MIAMI, FLORIDA, RELATING TO FINANCIAL
AUDIT SERVICES, AUTHORIZING THE CITY MANAGER TO HIRE
A NEW FINANCIAL AUDITOR AND EXECUTE A TWO -YEAR AUDIT
CONTRACT WITH THE AUDIT FIRM OF RODRIGUEZ, TRUEBA &
CO., P. A., WITH THE OPTION TO RENEW FOR ONE YEAR, IF SO
DESIRED BY THE CITY, AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, article 4, section 4(e) of the City Charter prohibits the use of the same Financial
Auditor for more than three consecutive years; and
WHEREAS, the City hired the accounting firm of Alberni, Caballero & Castellanos,
L.L.P.., for the last three years; and
WHEREAS, the City Administration has solicited bids for financial audit services and received
responses from three different firms with license to operate within the State of Florida; and
WHEREAS, the bids were reviewed by the Finance Department and has recommended that the
City hire the firm of Rodriguez, Trueba & Co.; P. A.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF
THE CITY OF SOUTH MIAMI, FLORIDA:
I Section 1. The City Manager is authorized to engage the firm of Rodriguez, Trueba &
Co., P. A to provide financial auditing services for the City.
2. Section 2. The City Manager is authorized to sign negotiate the service contract for two
years with the option to renew for an additional year, if so desired by the City
3. Section 3. This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this a day of November, 2007.
ATTEST:
APPROVED:
fn,C�
MAYOR
Commission Vote:
Mayor Feliu:
Vice -Mayor Wiscombe:
Commissioner Birts:
Commissioner Palmer:
Commissioner Beclanan:
9�1-�
5 -0
Yea
Yea
Yea
Yea
Yea
South Miami
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Mftftflfty
INCORPORATE/ CITY OF SOUTH MIAMI
� �
7827 P INTER- OFFICE MEMORANDUM
t O Zip
2001
To: The Honorable Mayor 1=eliu and Members of the City Commission
Via: Yvonne S. McKinley, City Manager �7r✓
From: Eliza Rassi
Finance Director
Date: October 16, 2007 Agenda Item No.:
Subject: Resolution to hire the audit firm of Rodriguez, Trueba & Co., as the
Financial Auditor for the City of South Miami for the term of two years with
an option to renew for one year.
Fiscal Year's ended 09/30107, 09/30/08 & 09/30/09
Resolution: A RESOLUTION OF THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI, FLORIDA, RELATING TO
FINANCIAL AUDIT SERVICES, AUTHORIZING THE CITY
MANAGER TO HIRE A NEW FINANCIAL AUDITOR AND
EXECUTE A TWO -YEAR AUDIT CONTRACT WITH THE
AUDIT FIRM OF RODRIGUEZ, TRUEBA & CO., P. A., WITH
THE OPTION TO RENEW FOR ONE YEAR, IF SO DESIRED
BY THE CITY, AND PROVIDING FOR AN EFFECTIVE
DATE.
Cost: The firm of Rodriguez Trueba & Co., PA, has proposed the fee of
$35,525 for the Basic Financial Statements and $7,500 for the
Federal and State Single Audits a total of $43,025 for each of the
three year periods.
The Firm of Sharpton, Brunson & Co., PA, proposed a fee of $55,000 for
each of the three year periods.
The Finn of Keefe, McCullough & Co., LLP, proposed a fee of $37,500
for 2007; $40,000 for 2008 and $42,500 for 2009.
Backup Documentation:
❑ RFP No. SM -FM FN0713 -2007
❑ Keefe, McCullough & Co., LLP - Proposal
❑ Rodriguez, Trueba & Co., PA — Proposal
❑ Sharpton, Brunson & Co., PA - Proposal
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South Miami
Ai!- AmedcaG O
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• INCARPORQm • CITY OF SOUTH MIAMI
'9.27 P OFFICE OF THE CITY MANAGER
i o RY p
ENTER- OFFICE MEMORANDUM 2001
To: The Honorable Mayor Feliu and Members of the City Commission
Via: Yvonne S. McKinley, City Man
From: Eliza Rassi, Finance Director
Date: October 30, 2007
Subject: Auditor Selection for 2007; 2008; & 2009
Background: Herewith, please find a brief history for the Auditor recommendation that I made to the
Mayor & Commission on the meeting of
October 16, 2007.
On May 04, 2007 RFP FN2006/07- SM0504 -2007 was placed in the Miami Daily
Business Review to be opened on May 25, 2007.
On May 25, 2007 City Clerk certified.the receipt of only 1 RFP
Bidder - Keefe, McCullough &Co., LLP.
At such time I felt that it would be in the best interest of the City to re -issue to RFP
hoping to have a greater selection of firms and fee to compare from. Therefore on July
13, 2007 RFP SM- FN0713 -2007 was placed in the Miami Daily Business Review to be
opened on' August 13, 2007. Also a copy of the Request for Proposal was sent by
Central Services to 28 local firms directly at my request and in order to notify as many
firms as possible. On August 13, 2007 once again City Clerk certified the receipt of 2
RFP's — Rodriguez, Trueba & CO., PA and Sharpton, Brunson & Co., PA.
I merged the two RFP's to have three firms to choose from and intended to set up an
internal committee to review and recommend a firm. However, due to the time of year,
the most intense part of budgeting and the complexities of the new Tax Relief rules and
requirements, I found it impossible to dedicate any substantial time to the Auditor
Selection review. After the completion and' conclusion of the Budget Process and
implementation of such into the System, I reviewed and compared the three firms using
the attached comparison guide to make my recommendation.
After such review I have concluded that all Three are highly qualified and would perform
well the duties that we are requiring. All three have extensive years in business,
qualified staff, experience, insurance and up to date licensing. In light of this - fee,
location and current level of engagements became the final determinants for my
recommendation.
Backup Documentation: RFP No. FN2006/07- SM0504 -2007 Certification of Publication
RFP No FN2006/07- SM0504 -2007 Public Opening Report
RFP No SM- FN0713 -2007 Certification of Publication
RFP No SM- FN0713 -2007 Public Opening Report
List of Firms mailed RFP information
Auditor. Selection Comparison
Contractor References
MIAMI DAILY BUSINESS REVIEW
Published Dairy except Saturday. Sunday and
Legal Hoiklays
Miami, Miami -Dada County, Flodda
STATE OF FLORIDA
COUNTY OF MIAMI -DADS
Before the undersigned authority personally appeared
O.V. FERBEYRE, who on oath says that he or she Is the
SUPERVISOR, Legal Notices of the Miami Daily Business
Review Vwa Miami Review, a daily (except Saturday, Sunday
and Legal Holidays) newspaper, published at Miami in•Mlami -Dade
County, Florida; that the attached copy of advertisement,
being a Legal Advertisement of Notice In the matter of
CITY OF SOUTH MIAMI - REQUEST FOR PROPOSALS
RFP NO. FN 2008/07 -SM0504 -2007
in the XXXX Court,
was published in said newspaper in the issues of
05/08/2007
Affiant further says that the said Miami Daily Business
Review Is a newspaper published at Miami in said Mlaml -Dade
County. Florida and that the said newspaper has
heretofore been continuously published in said Miami -Dade County,
Florida, each day (except Saturday, Sunday and Legal Holidays)
and has been entered as second class mail matter at the post
office In Miami in said Miami -Dade County, Florida, for a
period of one year next preceding the first publication of the
attached copy of advertisement, and afflant further says that he or
she has neither paid nor promised any person, firm or corporation
any discount, rebate, commission or refund for the purpose
of securing ertis publication In the said
newspaper f0'1
d
Sworn to and subscribed before me this
08 day of MAY , A.D. 2007
(SEAL)
O.V. FERBEYRE personalty known to me
�, Cheryl H Winner
. My Commission DOWS50
V11 fixes Jul/ 18, 2008
�� i` �• \�l ice, � "_ ! i P.� j � __ f '" �• _
Bids were oRemned on Friday May 25 2007 at: . 3:01p
For ' Auditinlz Services RFP No FN 2006107 — SM0504 -2007
]Pre -Bid Esthnate:
CONTRACTOR(S): BID Alm® 105:
1. Keefe, McCullough & Co., LLP Ceffied Public Accountants
THE ABOVE BID AMOUNTS HAVE
THE BID TOTALS ARE SUBJECT TO CORRECTION Ag
HAVE BEEN COMPLETELY
I V/' Ga. }�� rs�it V'fn S'�r''" ` Witness:
City Clerk's Si�ra:��_�r i � a � � � -�
MOW DAOL ' BUSPNESS REVEEW
Published Daily except Saturday, Sunday and
t.egal Holidays
Miami, Miami-Dade County, Florida
STATE OF FLORIDA
COUNT}( OF MIAMI -DADE:
Before the undersigned authority personally appeared
O.V. FERBEYRE, who on oath says that he or she is the
SUPERVISOR, Legal Notices of the Miami Daily Business
Review f/k/a Miami Review, a dally (except Saturday, Sunday
and Legal Holidays) newspaper, published at Miami in Miami -Dade
County, Florida; that the attached copy of advertisement,
being a Legal Advertisement of Notice in the matter of
CITY OF SOUTH MIAMI - RFP NO_ SM- FN0713 -2007
EXTERNAL AUDIT SERVICES
in the XXXX Court,
was published in said newspaper in the issues of
07/13/2007
Afffant further says that the said Miami Daily Business
Review is a newspaper published at Miami In said Miami -Dade
County, Florida and that the said newspaper has
heretofore been continuously published In said Miami -Dade County,
Florida, each day (except Saturday, Sunday and Legal Holidays)
and has been entered as second class mail matter at the post
office in Miami in said Miami -Dade County, Florida, for a
period of one year next preceding the first publication of the
attached copy of advertisement; and afflant further says that he or
she has neither paid nor promised any person, firm or corporation
any discount, rebate, commission or refund for the purpose
of securing ' advert! or publication in the said
newspapey n /,,�
6
Sworn to and subscribed before me this
(SEAL)
O.V. FERBEYRE personally known to me
MARIA f. MESA
d NOTARY PUBLIC STATE OF FIDRIDA
Commission #DD293855
Expires: MARCH 04, 2008
CITY OF SOUTH PADAR90
RrgQ BEST fFOIR•
The City of South Miami, Florida, hereinafter referred to "as City, will
receive sealed Proposals at the Office of the City Cleric, City hall, 6130
Sunset Drive, South Miami, Florida 33143, for furnishing the services
described below:
EXTERNAL AUDIT SERVICES
RFP NO. SM - FN0713 -2007
Seated Proposals must be received and time stamped in by the Office of
the City Clerk, either by man or hand delivery, no later than 3:00 P.M..
local time on Monday, _sll& 20 Q7. A public opening will take place,
at 3:05 P.M. in the City Chambers located at City Hall on the'same date.
Any Proposals received alter 3:00 P.M. local time on said date win not be
accepted under any circumstances. Any uncertainty regarding the time a
Proposal is received will be resolved against the Proposer.
Proposals are subject to the attached Standard Terms and Conditions
contained In the Instructions to Proposers. These can be picked up at
City Clerks office Monday through Frlday from 8:00 A.M to 5:00 P.M.
The City reserves the right to reject any or all Proposals, to waive any
Informaiftfes or irregularities in any Proposals received, to re- advertise
for Proposals, to award in whole or in part to one or niore Proposers, or
take any other such actions that may be deemed to be in the best
interests of the City. •
City of South Miami, Florida
7/13 07- B- 60/860919M
Bids were oRDenedl on Monday August 13 2007 ��° 3:OSpm
For- External Auditor Services SM- FN0713 -200
,r W'rlD A V IC nR� q- BED AMOUNT: UAMOUNT:
TM BDD
City Clerk's S
TM BDD
City Clerk's S
Ja6i*and Smudge Free Pring n.9 onry y avely.co sa � AVER Y0 51600
Use Avery® TEMPLATE 51600 9- 800- G® -AVEkY
:aufman Rassin & Co.
1699 S. Bayshore Drive
Miami, Florida 33133
3erkowitz Dick Pollack & Brant
100 S Biscayne Blvd.
Miami, Florida 33131
aerson Preston Robinson &
,o., P.A.
366 71 Street
Miami Beach, Fl 33141
Aallah Furman & Co., P.A.
L001 Brickell Bay Drive, 1400
Aiami, Fl 33131
3oldstein Lewin & Co.
L900 N.W. Corporate Blvd
Ste 300E, Boca Raton, Fl
33431
<och Reiss & Co., P.A.
1700 Sheridlan Street
- 1ollywood, Fl 33021
Pinchasik Strongin Muskat
Stein & Co.
3225 Aviation Ave.
Miami, Fl 33133 .
Kane & Co., P.A.
1101 Brickell Ave
Miami, Fl 33131
Rachlin Cohen & Holtz LLP
1 S.E. Third Ave
Mlaml,.Florida 33133
RSM McGladrey /McGladrey &
Pullen
1555 Palm Beach Lakes Blvd
West Palm Beach, Fl 33401
CBIZ Accounting, Tax & Adv
200 S. Biscayne Blvd,. Ste 830
Miami, Fl 331.31
Goldstein Schechter Price
2121 Ponce de Leon Blvd
Coral Gables, Fl 33134
Keefe McCullough & Co. LLP
6550 N. Federal Highway, Suite
410, Ft. Lauderdale, Fl 33308
Sharpton Brunson & Co., P.A.
1 S.E. Third Ave., Ste 2100
Miami, Florida 33131
Templeton & Co.
222 Lake View Ave., Ste. 1200
West Palm Beach, FI 33410
I nedman Cohen Taubman Co.
2 So. University Dr., No. 327
Plantation, Fl. 33324
gordan Castellon & Co
Rodriguez Trueba and Co.
Ponce de Leon Blvd
1985 N.W. 88 Court
�99
oral Gables, Fl 33134
Miami, Florida 33172
Property Owner / Resident
SOUTH MIAMI, FL 33155
Property Owner / Resident
SOUTH MIAMI, FL 33155
Morrison Brown Argiz & Farra
1001 Brickell Bay Drive,
9a' Floor
Miami Florida 33131
Grant Thornton LLP
2700 S. Commerce Parkway,
Ste 300, Weston., Fl 33331
Berenfeld Spritzer Schechter &
Sheer
9655 S. Dixie Hwy, 3rd floor
Miami, Fl 33156,
Daszkal Bolton LLP
2401 N.W. Boca Raton Blvd
Boca Raton, Fl 33431
McKean Paul Chrycy Fletcher
6401 S.W. 87 Ave.
Miami, Florida 33173
Bloom Gettis Abib Silver Terron
2601 S. Bayshore Dr
Miami, Fl 33133
Rlbotsky, Levine & Co.
901 N.E. 125 Street
North Miami, Fl 33161
Berkovits, Lago & Co.
b211 W. Broward Blvd.,Ste 340
Ft. Lauderdale, Fl 33324
AH3AV -09 -ODD -6 ag zas @�Rn
r rnq LC 4-� AMZ1 AW ......r._..... - - - -- ...��..�......... _ , . ...a, . ....... .........a....
- - -- - CITY OF SOUTH MIAMI
AUDITOR SERVICES COMPARISON
FOR RECOMMENDATION TO COI09 NUSSION
EFE
RT &C
SHARPTON
AUDIT TEAM CONSISIT OF
2 partner's; 1 Senior &
F/T 2 partners, 3 Senior
1 Partner: i Sr. Mgr.
1 -2 Accountants
P/T 5 administrative
1 Audit Senior; 2 Staff
CURRENT EXPERIENCE
35 years
18 years
22 years
EXPERIENCE
North Bay Village
South Miami 09/30/02
South Miami Public
City of Parkland
SM Police Pension
Works & Purchasing
City of Plantation
09/30/02 & 09/30/03
oyeradorW & Pafonnamo
City of Weston
SM CRA 09/30/01 &'02
review from'94 to'02
Town of Golden Beach
City of Miami
Office of Tourism
Broward Count Aviation
Miami Dade Cty. S/W
City of Doral
M/D Housing; Aviation
City of West Miami
Clerk of the Courts
City of Sweetwater
SF Water MgL
Tri -Rail
Housing Finance Author.
of Broward County
CURRENT AUDITS
North Bay Village
Broward County Aviation
Office of Tourism
City of Parkland
City of Doral
Miami Dade Cty. S/ W
City of Plantation
City of West Miami
Miami Dade Housing
City of Weston
_City
of Sweetwater
Miami Dade Aviation
SF Water Mgt.
Clerk of the Courts
SF Water Mgt.
Tri -Rail
GASB 44 IMPLEMENTATION
not specifically addressed
Addressed the new R of
not specifically addressed
New Pronouncement's
GASB 43, 44,45 & 47
INSURANCE
Ok
Ok
Ok
PEER REVIEW
Yes AY & K of GA
No
No
LICENSES
Ok
Ok
Ok
5 YEAR HISTORY
Yes
Yes
Yes
DISCIPLINARY ACTION
N/A
N/A
N/A
LITIGATION
INIA
N/A
NIA
10 YEAR HISTORY
Yes
Yes
Yes
DISCIPLINARY ACTION
NIA
N/A
N/A
LITIGATION
N/A
N/A
N/A
Wild. COST INCLUDE
YEAR ROUND ASSISTANCE
IYes
Yes
Yes
F'EE'S
2007
$37,M0
$43,025
$55,000
2008
$40,000
$43,025
$55,000
2009
$42,500
$43,025
$55,000
E ELIZA
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IpcORPORAIED
1927
RVO
Finance Department
Contractor References
Based on Experience, Ability and Financial Standing
Keefe, McCullough & Co., CPA's is a potential contractor for the City of South Miami. It is our
practice to obtain references from individuals and companies who have worked with a potential
contractor. The above company has included you and/or your company as a reference. We would
greatly appreciate your prompt response to the following inquiry as it applies to the nature or your
relationship with the company. Those that do not apply should be left blank.
Please rate the consultant as follows:
1- poor 2 - average 3 -- above average 4- very good 5-excellent
Reference given by:
City of Plantation
Mr Herber Herriman, Finance Director
Address: 400 NW 73rd Ave
City /St/Zip Plantation, FL 33137
Telephone 954- 797 -2202
Date
Reference check conducted by:
ck-
Name: � \ C -2 �k
If you have any question about this form, please call (305)663 -6343.
1
2
.3
4
5
Criteria
y to complete project on time
A. Abilit
L1
B. Ability to stay within the budget
C. Quality of work
V2-
D. Financial standing if applicable)
f
E. Experience in their line of work
Additional Comments (May indicate last project /transaction with contractor):
Reference given by:
City of Plantation
Mr Herber Herriman, Finance Director
Address: 400 NW 73rd Ave
City /St/Zip Plantation, FL 33137
Telephone 954- 797 -2202
Date
Reference check conducted by:
ck-
Name: � \ C -2 �k
If you have any question about this form, please call (305)663 -6343.
sour�l
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F �
U
INCORPORATED
1927
0 Pyp
Finance Department
Contractor References
Based on Experience, Ability and Financial Standing
Keefe, McCullough & Co., CPA's is a potential contractor for the City of South Miami. It is our
practice to obtain references from individuals and companies who have worked with a potential
contractor. The above company has included you and/or your company as a reference. We would
greatly appreciate your prompt response to the following inquiry as it applies to the nature or your
relationship with the company. Those that do not apply should be left blank.
Please rate the consultant as follows:
I -- poor 2 average 3 — above average 4- very good 5- excellent
Reference given by: C Reference check conducted by:
SC) �
Cfty of Weston Name:
Mr John R. Flint, Fin nt—eTdrectm
Address: 2500 Weston Road Suite 101
City /St(Zip Weston, FL 33331
Telephone 954 -385 -2000
Date
If you have any question about this form, please call (305)663 -6343.
�� Ae Z
or, '.
t ( b
�lzlo��
I
2
3
4
5
Criteria
A. Ability to complete ro'ect on time
B. Ability to stay within the budget
C. Quality of work
D. Financial standing if applica ble
E. Ex erience in their line of work
Additional Comments (May indicate last project /transaction with contractor):
Reference given by: C Reference check conducted by:
SC) �
Cfty of Weston Name:
Mr John R. Flint, Fin nt—eTdrectm
Address: 2500 Weston Road Suite 101
City /St(Zip Weston, FL 33331
Telephone 954 -385 -2000
Date
If you have any question about this form, please call (305)663 -6343.
�� Ae Z
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S0Vr
O� �yf
9
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INCORPORAM
1927
�tORY9P
Finance Department
Contractor References
Based on Experience, Ability and Financial Standing
Keefe McCullough & Co., CPA's is a potential contractor for the City of South Miami. It is our
practice to obtain references from individuals and companies who have worked with a potential
contractor. The above company has included you and/or your company as a reference. We would
greatly appreciate your prompt response to the following inquiry as it applies to the nature or your
relationship with the company. Those that do not apply should be left blank.
Please rate. the consultant as follows:
1— poor 2 -- average 3 — above average 4- very good 5- excellent
Reference given by:
City of Parkland
Ms Judith C. Kilgore, Finance Director
Address: 6500 Parkside Drive
City /St/Zip Parkland FL 33067
Telephone 954- 753 -5040
Date
Reference check conducted by:
Name:
If yob have any question about this form, please call (305)663 -6343.
7
a�C7,
X
2
3
4
5
Criteria
A, Ability to complete project on time
B. Ability to stay within the budget
0
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�
C. Quality of work
Q
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l
C`e,
C� t
D. Financial standing if applicable)
E. Experience in their line of work
Additional Comments (May indicate last project /transaction with contractor):
Reference given by:
City of Parkland
Ms Judith C. Kilgore, Finance Director
Address: 6500 Parkside Drive
City /St/Zip Parkland FL 33067
Telephone 954- 753 -5040
Date
Reference check conducted by:
Name:
If yob have any question about this form, please call (305)663 -6343.
7
a�C7,
sour
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U "
INCORPORAI'EO
1927
P
� O RlP
Finance Department
Contractor References
Based on Experience, Ability and Financial Standing
Sharpton Brunson & Co P.A.. . , CPA' & Business Consultants is a potential contractor for the City of
South Miami. It is our practice to obtain references from individuals and companies who have worked
with a potential contractor. The above company has included you and/or your company as a reference.
We would greatly appreciate your prompt response to the following inquiry as it applies to the nature .
or your relationship with the company. Those that do not apply should be left blank.
Please rate the consultant as follows:
1. -- poor 2 — average 3 — above average 4- very good 5- excellent
Reference given by:
Reference check conducted by:
Office of Trade Tourism & Economics Name: i ' At6 i
Ms. Wynnelle Wilson, Chief Analyst to N 1 - lo,1 -74rn
Address: Office of the Governor_
City /St/Zip Tallahassee, FL 32399 ff
Telephone 850- 487 -2191
Date 1 '�
If you have any question bout this form, please call (305)663 -6343.
1
2
3
4
5
Criteria
A. Ability to complete project on time
41
B. Ability to stay within the budget
C. Quality of work
A Financial standing (if applicable)
0
E. Experience in their line of work
Additional Comments (May indicate Iast project /transaction with contractor):
AnniVL t l� ^'i rl .
Reference given by:
Reference check conducted by:
Office of Trade Tourism & Economics Name: i ' At6 i
Ms. Wynnelle Wilson, Chief Analyst to N 1 - lo,1 -74rn
Address: Office of the Governor_
City /St/Zip Tallahassee, FL 32399 ff
Telephone 850- 487 -2191
Date 1 '�
If you have any question bout this form, please call (305)663 -6343.
SOUrt3
•=r y
U
it" OPPO"aw
1927
CpR1
R
Finance Department
Contractor References
Based on Experience, Ability and Financial Standing
Sharpton Brunson & Co P.A.- CPA' & Business Consultants is a potential contractor for the City of
South Miami. It is our practice to obtain references from'individuals and companies who have worked
with a potential contractor. The above company has included you and/or your company as a reference.
We would greatly appreciate your prompt response to the following inquiry as it applies to the nature
or your relationship with the company. Those that do not apply should be left blank.
Please rate the consultant as follows:
1— poor 2 — average 3 -- above average 4- very good 5- excellent
Reference given by: Reference check conducted by:
Miami Dade County Name: /Z
Ms Rachael Baum Finance Director �' 1 3l
Address:
City /St/Zip Miami, FL
Telephone 305 375 245
Date _� )1
If you have any question a out this form, please call (305)663 -6343.
1
2
3
4
=5
Criteria
A. Ability to complete project on time
B. Ability to stay within the budget
C. Quality of work
D. Financial standing if a licable
E. Experience in their line of work
Additional Comments (May indicate last project /transaction with contractor):
Reference given by: Reference check conducted by:
Miami Dade County Name: /Z
Ms Rachael Baum Finance Director �' 1 3l
Address:
City /St/Zip Miami, FL
Telephone 305 375 245
Date _� )1
If you have any question a out this form, please call (305)663 -6343.
of Sauxfj�r
I- 9
V
{NCORPORAYEO
1927
O g'[0
Finance Department
Contractor References
Based on Experience, Ability and Financial Standing
Sharpton , Brunson & Co.. P.A.- CPA' & Business Consultants is a potential contractor for the City of
South Miami. It is our practice to obtain references from individuals and companies who have worked
with a potential contractor. The above company has included you and/or your company as a reference.
We would greatly appreciate your prompt response to the following inquiry as it applies to the nature
or your relationship with the company. Those that do not apply should be left blank.
Please rate the consultant as follows:
1— poor 2 — average 3 — above average 4- very good 5- excellent
Reference given by:
South Florida Water Mgt. Dist.
Mr Paul Dumar,Chief Financial. Officer
Address:
City /St/Zip
Refere e, check El ucted - by:
pme: 1 M
ll ' I6 3s ID 8rr)
Telephone 561 682 6212
Date _ 1 r 1 2
If you have any question about this form, please call (305)663 -6343.
1
2
3
4
5
Criteria
A. Ability to complete project on time
B. Ability to stay within the budget
C. Quality of work
D. Financial standing if applicable)
E. Experience in their line of work
Additional Comments (May indicate last project /transaction with contractor):
Reference given by:
South Florida Water Mgt. Dist.
Mr Paul Dumar,Chief Financial. Officer
Address:
City /St/Zip
Refere e, check El ucted - by:
pme: 1 M
ll ' I6 3s ID 8rr)
Telephone 561 682 6212
Date _ 1 r 1 2
If you have any question about this form, please call (305)663 -6343.
sour
04 '�rf
k
U
1RCORPORATED
tsar
�CoRtp P
Finance Department
Contractor References'
Based on Experience, Ability and Financial Standing
Rodriguez Trueba & Co PA CPA's is a potential contractor for the City of South Miami. It is our
practice to obtain references from individuals and companies who have worked with a potential
contractor. - The above company has included you and/or your company as a reference. We would
greatly appreciate your prompt response to the following inquiry as it applies to the nature or your
relationship with the company. Those that do not apply should be left blank. .
Please rate the consultant as follows:
1— poor 2 — average 3 — above average 4- very good 5- excellent
Reference given by:
City of Miami
Armando Blanco Project Manager
Address: 444 SW 2nd Ave.
City /St/Zip Miami FL 33130
Reference check conducted by:
Name:
o • .�
.X 0 M 5--\
Telephone 3054161042
Date h� V 1 if i d 7 �/��19
If you have any question ou this form, please call (305)663 -6343.
1
2
3
4
5
Criteria
A. Ability to complete project on time
B. "Ability to stay within the budget
C. Qualibr of work
D. Financial standing if applicable)
E. Experience in their line of work
Additional Comments (May indicate last project /transaction with contractor):
Reference given by:
City of Miami
Armando Blanco Project Manager
Address: 444 SW 2nd Ave.
City /St/Zip Miami FL 33130
Reference check conducted by:
Name:
o • .�
.X 0 M 5--\
Telephone 3054161042
Date h� V 1 if i d 7 �/��19
If you have any question ou this form, please call (305)663 -6343.
yov7h
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U
• IRCORPORKMO
t 927
Et t AD)
P
Finance Department
Contractor References
Based on Experience, Ability and Financial Standing
Rodriguez, Trueba & Co.., PA, CPA's is a potential contractor for the City of South Miami. It is our
practice to obtain references from individuals and companies who have worked with a potential
contractor. The above company has included you and/or your company as a reference. We would
greatly appreciate your prompt response to the following inquiry as it applies to the nature or your
relationship with the company. Those that do not apply should be left blank.
Please rate the consultant as follows:
1— poor 2 — average 3 — above average ' 4- very good 5- excellent
I
Reference given by:
City of Doral Name:
Mr. Randolph G. White, Finance Director
Address: 8300 NW 53 Street #300
City /St/Zip Doral, FL 33178 r-
Telephone 305 -
Date
If you have any question
Reference check conducted by:
this form, please call (303)663 -6343.
1.`on Anrt
1
2
3
4
5
Criteria
A. Ability to complete project on time
B. Ability to stay within the budget
C. Quality of work
D. Financial standing if applicable)
E. Experience in their line of work
Ad itionaI Comments (May M:K: t /transaction with contractor }:
4"'f j1��le
I
Reference given by:
City of Doral Name:
Mr. Randolph G. White, Finance Director
Address: 8300 NW 53 Street #300
City /St/Zip Doral, FL 33178 r-
Telephone 305 -
Date
If you have any question
Reference check conducted by:
this form, please call (303)663 -6343.
1.`on Anrt
SOU2,
.L y
N
U
IN COR 7ATPA
:927
DLO It -1
Finance Department
Contractor References
Based on Experience, Ability and Financial Standing lh6
Rodriguez, Trueba & Co— PA, CPA's is a potential contractor for the City of South Miami: It is our
practice to obtain references from individuals and companies who have worked with a potential
contractor. The above company has included you and/or your company as a reference. We would
greatly appreciate your prompt response to the following inquiry as it applies to the nature or your
relationship with the company. Those that do not apply should be left blank.
Please rate the consultant as follows:
1— poor 2 — average 3 — above average 4- very good 5- excellent
Reference given by:
/ Broward County Aviation Dept.
a� Natallie Otto Assistant Director of Finance
Address: 100 Aviation Blvd.,
Reference check conducted by:
Name: 4 fC-f 101) & s°� I
-3 l� =�U
1
City /St/Zip Ft. Lauderdale, FL 3331 S A
Telephone 954 -3 9 -1026
Date Z a /b 1 6 0
If you have any question about this form, please call (305)663 -6343.
:S
1
2
3
4
5
Criteria
A: Ability to complete project on time
B. Ability to stay within the budget
C. Quality of work
D. Financial standing if applicable)
E. Experience in their line of work
Additional Comments (May indicate last project /transaction with contractor) ::
Reference given by:
/ Broward County Aviation Dept.
a� Natallie Otto Assistant Director of Finance
Address: 100 Aviation Blvd.,
Reference check conducted by:
Name: 4 fC-f 101) & s°� I
-3 l� =�U
1
City /St/Zip Ft. Lauderdale, FL 3331 S A
Telephone 954 -3 9 -1026
Date Z a /b 1 6 0
If you have any question about this form, please call (305)663 -6343.
:S
11! ERT& C
RODRIGUEZ,TRUEBA & CO.,PA
CERTIFIED PUBLIC ACCOUNTANTS
November 15, 2007
Yvonne Soler- McKinley, City Manager
City of South Miami
6130 Sunset Drive
South Miami, Florida 33143
Dear Mrs. Soler - McKinley:
We'(the "Firm ") are pleased to confirm our understanding of the services we are to provide the
City of South Miami (the "City ") as of and for the years ending September 30, 2007 and 2008..
We will audit the financial statements of the governmental activities, the business -type activities,
each major fund, and the aggregate remaining fund information, which collectively comprise the
entity's basic financial statements of the City as of and for the years ending September 20, 2007
and 2008. The document we submit to you will include the following supplementary
information that is required under generally accepted accounting principles, but that will be
subjected to certain limited procedures and will not be audited:
1. Management's discussion and analysis.
2. Budgetary comparison schedules.
3. GASB required — Supplementary pension information (if required).
Also the document we submit to you will include the following additional information that will
be subjected to the auditing procedures applied in our audit of the financial. statements upon
which we will provide an opinion in relation to the basic financial statements.
1. Combined and individual non major fund financial statements.
2. Schedule of expenditures of federal awards.
Audit Objectives
The objective of our audit is the expression of oph ns as to whether your basic the financial
statements are fairly presented, in all material respects, in conformity with U.S. generally
accepted accounting principles (as defined in SAS No.69 "The Meaning of Present Fairly in
Accordance with Generally Accepted Accounting Principles" as applicable) and to, report on the
fairness of the additional information, referred to in the first paragraph when considered in
relation to the basic financial statements taken as a whole. The objective also includes reporting
on:
Internal control related to the financial statements and compliance with laws, regulations, and the
provisions of contracts or grant agreements, noncompliance with which could have a material
effect on the financial statements in accordance with Government Auditing Standards,
Doral Office: 1985 NW 88th Court, Suite 101, Dora], FL 33172 • Phone: 305 - 593 -2644 • Fax: 305 - 593 -0390
Miami Lakes Office: 8040 NW 155th Street, Suite 206, Miami Lakes, FL 33016 • Phone: 305 - 779.1120 • Fax: 305 - 779 -1121
www.rtc- cpa.com
Member of the American Institute of Certified Public Accountants • Member of the Florida Institute of Certified Public Accountants
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 2 of 14
Internal control related to major programs and an opinion (or disclaimer of opinion) on
compliance with laws, regulations, and the provisions of contracts or grant agreements that could
have a direct and material effect on each major program in accordance with the Single Audit Act
Amendments of 1996 and OMB Circular A -133, "Audits of States, Local Governments, and Non
Profit Organizations."
The reports on internal control and compliance will each include a statement that the report is
intended for the information of the audit committee, the City Commission; management,
specific legislative or regulatory bodies, federal and state awarding agencies and, if applicable,
pass - through entities and is not intended to be and should not be used by anyone other than these
specified parties.
Our audit will be conducted in accordance with U.S. generally accepted auditing standards; the
standards for financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the
provisions of OMB Circular A -133, Section 218.39 and 215.97, of the Florida Statutes, Chapter
10.350 of the'Rules of the Auditor General of the State of Florida and the Florida Single Act and
will include tests of accounting records, a determination of major program(s) in accordance with
Circular A -133, and other procedures we consider necessary to enable us to express an opinion
and to render the required reports. If our opinion on the financial statements or the Single Audit
compliance opinion is other than unqualified, we will discuss the reasons with you in advance.
If, for any reason, we are unable to complete the audit or are unable to form or. have not formed
an opinion, we may decline to express an opinion or to issue a report as a result of this
engagement.
Management ResponsibUities
Management is responsible for establishing and maintaining effective internal control and for
compliance with the provisions of applicable laws, regulations, contracts, agreements, and
grants. In fulfilling this responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of the controls. The objectives of internal control
are to provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, that transactions are executed in
accordance with management's authorizations and recorded properly to permit the preparation of
financial statements in accordance with U.S. generally accepted accounting principles, and that
federal award programs are managed in compliance with applicable laws and regulations and -the
provisions of contracts and grant agreements.
Management is responsible for making all financial records and related information available to
us, including any significant vendor relationships in which the vendor has the responsibility for
program compliance.. We understand that you will provide us with such information required for
our audit and that you are responsible for the accuracy and completeness of that information.
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 3 of 14
We will advise you about appropriate accounting principles and their application and will assist
in the preparation of your financial statements, including the schedule of expenditures of federal
awards, but the responsibility for the financial statements remains with the City. As part of our
engagement we may propose standard, adjusting or correcting journal entries to your financial
statements. You are responsible for reviewing the entries and understanding the nature of any
proposed entries and the impact they have on the financial statements. That responsibility
includes the establishment and maintenance -of adequate records and effective internal control
over the financial reporting and compliance, the selection and application of accounting
principles, and the safeguarding of assets. Management is responsible for adjusting the financial
statements to correct material misstatements and confirming to us in the management
representation letter that the effects of any uncorrected misstatements aggregated by us during
the current engagement and pertaining to the latest .period presented are immaterial, both
individually and in the aggregate, to the financial statements taken as a whole.
You are responsible for establishing and maintaining internal controls, including monitoring
ongoing activities; for the selection and application of accounting principles; and for. the fair
presentation in the financial statements of financial position, changes in net assets, and cash
flows in conformity with U.S. generally accepted accounting principles. You are also
responsible for management decisions and functions; for designating an individual with suitable
skill, knowledge, or experience to oversee the tax services we provide; and for evaluating the
adequacy and results of those services and accepting responsibility for them.
You are responsible for the design and implementation of programs and controls to prevent and
detect fraud, and for informing us about all known or suspected fraud or illegal acts affecting the
City or its affiliates involving: (1) management, (2) employees who have. significant roles in
internal control, and (3) others where the fraud could have a material effect on the financial
statements. Your responsibilities include informing us of your knowledge of.any allegations of
fraud or suspected fraud or illegal acts affecting the City or its affiliates received in.
communications from employees, former employees, grantors, regulators, or others.. In .addition,
you are responsible for identifying and ensuring that the City complies with applicable laws and
regulations and for taking timely and appropriate steps to remedy any fraud, illegal acts, or
violations of contracts or grant agreements, or abuse that we may report. Additionally, as
required by OMB Circular A -133, it is management's responsibility to follow up and take
corrective action on reported audit findings and to prepare a summary schedule of prior audit
findings and a corrective action plan. The summary schedule of prior audit findings should be
available for our review by the end of December of each year.
Management is responsible for establishment and maintenance of a process for tracking the
status of audit findings and recommendations. Management is also responsible for identifying for
us previous audits or other engagements -or studies related to the objectives discussed in the
Audit Objectives section of this letter. This responsibility includes relaying to us corrective
actions taken to address significant findings and recommendations resulting from those audits or
Letter to Yvonne Soler- McKinley
City of South Miami, Florida
Page 4 of 14
other engagements or studies. You are also responsible for providing management's views on
our current findings, conclusions, and recommendations, as well as your planned corrective
actions, and the timing and format related thereto.
As part of our engagement, we will assist you with the presentation of your financial statements
and supplementary information, schedule of expenditures of federal awards, and related notes.
All auditing research and compilations, including the issuance of a management letter to the City
staff shall occur by March 31", of each auditing year. The draft audit shall be completed and
presented to the City Commission by the March City Commission meeting. Failure to comply'
with these internal deadlines shall constitute a material breach of this auditing. agreement, and the
City may seek all remedies available to it, including but not limited to hiring. another auditor to .. .
complete the audit, to ensure compliance with any filing deadlines. In accordance with
Government Auditing Standards, you will be required to review and approve those financial
statements prior to their issuance and have responsibility to be in a position in fact and
appearance to make an informed judgment on those financial statements. Further, you are
required to designate a qualified management -level individual to be responsible and accountable
for overseeing our services. - Should we have any difficulties in receiving oversight by a City
staff person, we shall provide within five (5) days of the occurrence, written notice of such
difficulties to the City Manager, so that the City shall have the time to cure any such lack of
oversight. Despite anything to the contrary in this agreement, the Firm shall complete and
submit the audit by March 31" for each audit year.
Audit Procedures - General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements; therefore, our audit will involve judgment about the number of
transactions to be examined and the areas to be tested. We will plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material
misstatement, whether from (a) errors, (b) fraudulent financial reporting, (c) misappropriation of
assets, or (d) violations of laws or governmental regulations that are attributable to the City or to
acts by management or employees acting on behalf of the City. Because the determination of
abuse is subjective; Government Auditing Standards do not expect auditors to provide reasonable
assurance of detecting abuse. As required by the Single Audit Act Amendments of 1996 and
OMB Circular A -133, our audit will include tests of transactions related to major federal award
programs for compliance with applicable laws and regulations and the provisions of contracts
and agreements.
Because an audit is designed to provide reasonable, but not absolute, assurance and because we
will not perform a detailed examination of all transactions, there is a risk that material
misstatements or noncompliance may exist and not be detected by us. In addition, an audit is not
designed to detect immaterial misstatements or violations of laws or governmental regulations
that do not have a direct and material effect on the financial statements or on major programs.
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 5 of 14.
However, we will inform you of any material errors and any fraudulent financial reporting or
misappropriation of assets that come to our attention. We will also inform you of any violations
of laws or governmental regulations that come to our attention, unless clearly .inconsequential:
We will include such matters in the reports required for a Single Audit. Our responsibility as
auditors is limited to the period covered by our audit and does not extend to matters that might
arise during any later periods. for which we are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded
in the accounts, and may include tests of the physical existence of inventories, and direct
confirmation of receivables and certain other assets and liabilities by correspondence with
selected individuals,, creditors and financial institutions. We will request written representations
from your 'attorneys as part of the engagement, and they may bill you for responding to this
inquiry. At the conclusion of our audit, we will also require certain written representations from
you about the financial statements and related matters.
Audit Procedures - Internal Control
In planning and performing our audit, we will consider the internal control sufficient to plan the
audit , in order to determine the nature, timing and extent of our auditing procedures for the
purpose of expressing our opinions on the City of South Miami's financial statements and on its
compliance with requirements applicable to major programs.
We will obtain an understanding of the design of the relevant controls and whether they have
been placed in operation, and we will assess control risk. Tests of controls may be performed to
test the effectiveness of certain controls that we consider relevant to preventing and detecting
errors and fraud that are material to the financial statements and to preventing. and detecting
misstatements resulting from illegal acts and other noncompliance matters that have a direct and
material effect on the financial statements. Tests of controls relative to the.financial statements
are required only if control risk is assessed below the maximum level. Our tests, if performed,
will be less in scope than would be necessary to render an opinion on internal control and,
accordingly, no opinion will be expressed in our report on internal control issued pursuant to
Government Auditing Standards.
As required by OMB Circular A -133 and the Florida Single Audit Act, we will perform tests of
controls to evaluate the effectiveness of the design and operation of controls that we consider
relevant to preventing or detecting material noncompliance with compliance requirements
applicable to each of the City's major federal award program and state projects. However, our
tests will be less in scope than would be necessary to render an opinion on those controls and,
accordingly, no opinion will be expressed in our report on internal control issued pursuant to
OMB Circular A -133 or the Florida Single Audit Act.
Letter to Yvonne Soler- McKinley
City of South Miami, Florida
Page 6 of 14
An- audit is not designed to provide assurance on internal :control or to identify reportable
conditions. However, we will inform the governing body (the City Commission) or audit
committee of any matters involving internal control and its operation that we: consider to be
reportable conditions under standards established by the American Institute of Certified Public
Accountants. Reportable :conditions involve matters coming to our attention relating to
significant deficiencies in the design or, operation of the internal control that, in our judgment,
could adversely affect the entity's ability to record, process, summarize and report financial data
consistent with the assertions of management in the financial statements. We will also inform
you of any non - reportable conditions or other matters involving internal control, if any, as
required by Government Auditing Standards, OMB Circular A -133, and the Florida Single Audit
Act. As required by the single audit, we will issue the appropriate report on internal control and
provide the City with a Schedule of Findings and Questioned Costs, if applicable.
Audit Procedures - Compliance
Our audit will be conducted in accordance with the standards referred to in the section titled
Audit Objectives. As part of obtaining reasonable assurance about whether the financial
statements are free of material misstatement, we will perform tests of the City's compliance with
applicable laws and regulations and the provisions of contracts and agreements, including grant
agreements. However, the objective of those procedures will not be to provide an opinion on
overall compliance, and we will not express such an opinion in our report on compliance issued
pursuant to Government Auditing Standards.
OMB Circular A -133 requires that we also plan and perform the audit to obtain reasonable
assurance about whether the City has complied with applicable laws and regulations and the
provisions of contracts and agreements applicable to major programs. Our procedures .will
consist of the applicable procedures described in the OMB Circular A -133 Compliance
Supplement for the types of compliance requirements that could have a direct and material effect
on each of the City's major programs. The purpose of. those procedures. will be to express an
opinion on the City's compliance with requirements applicable to each of its major programs in
our report compliance issued pursuant to OMB Circular A -133 and the Florida Single Audit Act.
Audit Administration, Fees and Other
We understand that your employees will prepare all cash, accounts receivable, or other
confirmations requested and we will locate any invoices selected by us for testing.
At the conclusion of the engagement, we will complete the appropriate sections of and sign the
Data Collection Form that summarizes our audit findings. We will provide copies of our reports
to the City; however, it is management's responsibility to submit the reporting package
(including financial statements, schedule of expenditures of federal awards, summary schedule
of prior audit findings, auditors' reports and corrective action plan) along with the Data
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 7 of 14
Collection Form to the designated federal clearinghouse and, if appropriate, to pass - through
entities. We agree that the Data Collection Form and the reporting package shall be submitted
within the earlier of 30 days after receipt of the auditors' reports or nine (9) months aftm the end
of the audit period, unless a longer, period is agreed to in .advance by the cognizant or oversight.
agency for audit. Failure to submit the auditor's report within the prescribed time period shall be
a material breach of this auditing agreement. At the conclusion of the engagement, we will,
provide information to management as to where the reporting packages should be submitted and
the number to submit.
The audit documentation for this engagement is the property of our firm and constitutes
confidential information. We shall maintain the records. confidential from any of our. other
clients and shall not disclose any: information to third - persons, unless an exception is provided.
herein. Pursuant to authority given by law or regulation, we may be requested to make certain
audit documentation available to a cognizant or grantor agency or its designee, a federal agency
providing direct or indirect funding, or the Government Accountability Office for purposes of a
quality review of the audit, to resolve audit findings, or to carry out oversight responsibilities.
We will notify you of any such request. If requested, access to such audit documentation will be
provided under the supervision of our personnel. Furthermore, upon request, we may provide
copies of selected audit documentation to the aforementioned parties (governmental agencies).
These parties may intend, or decide, to distribute the copies or information contained therein to
others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years after
the date the auditors' report is issued or for any additional period requested by a cognizant
agency, oversight agency for audit, or pass - through entity. If we are aware that a federal
awarding agency, pass - through entity or City is contesting an audit finding, we will contact the
party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.
We expect to begin our audits during September 2007, 2008, and 2009 and we will issue our
reports no later than March .1, 2008 through 2010. Our fee for these services will be at our
standard hourly rate, plus out -of- pocket costs (such as report reproduction, word . processing,
postage, travel, copies, telephone, etc.) except that we agree that our gross fee, including
expenses, will not exceed $35,525 for 2007 and 2008. The fee for the Federal and State Single
Audit will approximate $7,500, but it may vary if programs and Federal Awards change
materially from the RFP. This is based on the single audit expenditures not exceeding two (2)
million dollars. Our standard hourly rates vary according to the degree of responsibility involved
and the experience level of the personnel assigned to your audit. Our invoices for theses fees
will be rendered each month as work progresses and are payable on .presentation. The above fee
is based on anticipated cooperation from your personnel and the assumption that unexpected
circumstances will not be encountered during the audit. If significant additional time is
necessary, we will discuss it with you and arrive at a new fee estimate before we incur the
additional costs. In the event either parties claims a breach of any term of this engagement, the
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 8 of 14
dispute first shall be submitted to voluntary mediation. If this is unsuccessful,-then the dispute
will be brought to binding arbitration conducted under the rules then prevailing with the
American Arbitration Association in the County where the City is situated, and the judgment or
award of the arbitration shall be binding and conclusive upon the parties and may be entered in
any court having proper jurisdiction.
As part of the fee, we agree to meet, at their request, with the City Commission, individually, to
obtain input from each of the individual Commission members, and prior to completion of the
audit, shall advise each individual Commission members, whenever applicable, of the City's
internal controls and whether there are any findings of any material noncompliance, material
misstatements, or reportable conditions. All such meetings shall take place prior to March 1S` .of. .
the applicable year, and the issuaace of the Management Response Letter. Additionally, we shall
attend at least one City board meeting to present our audit report.
Government Auditing Standards require that we provide you with a copy of our most recent
external peer review report and any letter of comment, and any subsequent peer review reports
and letters of comment received during the period of the agreement. Our 2004 peer review
report accompanies this letter.
This engagement includes only those services specifically described in this letter. Appearances
before judicial proceedings, government organizations such as the Internal Revenue Service, or
other regulatory bodies arising from this engagement will be billed to you separately. Additional
services which you may request will be subject to arrangements made at the time requested.
Indemnification
The firm shall be liable and responsible for any and all damages to persons or property
(hereinafter referred to as "loss'), and shall indemnify and hold harmless the City, its elected and
appointed officials, and its employees, agents and representatives for the loss and any liabilities,
claims, demands, actions, judgments, costs and reasonable expenses (including reasonable
attorney fees) directly relating to the loss, if the loss was caused as a result of our firm's failure
to satisfy its obligations under generally accepted auditing standards through negligence or error
or omission of the firm or our employees, if any. The.Auditor shall pay all claims and losses of
any nature whatever rising there from, and shall defend all suits arising there from, in the name
of the City when applicable, and shall pay all costs and judgments which may issue thereon,
except to the extent caused by the negligence of the City's officers or employees. During the
term of this agreement, our firm shall carry professional liability insurance coverage, which
proof of insurance shall be incorporated by-reference into this retainer agreement as Exhibit 1.
The City agrees that,all records, documentation, and information requested in connection with
the audit will be made available, that all material information will be disclosed and that the full
cooperation of City personnel will be provided. As required by generally accepted auditing
Letter to Yvonne Soler- McKinley
City of South Miami, Florida
Page 9 of 14
standards, specific inquiries will be made of management about the representations embodied in
the financial statements, the effectiveness of the internal. controls and the City's compliance with
certain laws and regulations, and .management will provide a representation letter about these
matters. The responses to inquiries, the written representations, and the results of audit. tests
comprise the evidential matter the auditors will rely upon in forming an opinion on the financial
statements. Because of the importance of . management's representations to the effective
performance of the audit services, the City will release the firm and its personnel from any
claims, liabilities, costs and expenses relating to their services under this agreement attributable
to any misrepresentations in the representation letter referred to above.
Insurance.
The City shall not be held liable or responsible for any claims which may result from acts, errors
or omissions of the Firm or its subcontractors, or employees. In reviewing, approving or
rejecting any submissions or acts of the Firm, the City in no way assumes responsibility or
liability for the acts, errors or omissions of the auditing firm or its subcontractors. The Firm
shall not commence work under this agreement until it has obtained all insurance required by the
City. The Firm shall defend, indemnify and hold the City harmless from any and all claims,
liability, losses, expenses and causes of action arising solely out of a negligent act, error, or
omission or misconduct of the Firm, or the Firm's subcontractors, suppliers and laborers incident
to the performance of the Firm's services under this agreement. The Firm shall pay all claims,
losses, fines, penalties, costs and expenses of any nature whatsoever resulting from its intentional
misconduct or negligence.
The Firm shall maintain during the term of this agreement the following insurance:
A. Comprehensive general liability insurance and professional liability insurances with
broad form endorsement, including automobile liability, completed operations and
products liability, contractual liability, severability of interest with cross liability
provision, and personal injury and property damage liability with limits of
$1,000,000.00 combined single limit per occurrence for bodily injury and property
damage. The policy or policies shall name City as additional insured and shall
reflect the hold harmless provision contained herein.
B. Workers' Compensation Insurance in compliance with Chapter 440, Florida
Statutes, as presently written or hereafter amended.
C. The policies shall contain waiver of subrogation against the City where applicable
and shall expressly provide that the policy or policies are primary over any other
insurance that the City may have. The City reserves the right to request a copy of
the required policies for review. All policies shall contain a "severability of interest"
or "cross liability" clause without obligation for premium payment of the City.
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 10 of 14
D. All of the insurance is to be placed with Best rated A -8 or better insurance.
companies qualified -to do business under the laws of the State of Florida.
The Firm shall furnish certificates of insurance to the City prior to the commencement of
operations, a copy of this is provided at Exhibit 1. The certificates shall clearly indicate that the
Firm has obtained insurance in the type, amount, and classification as required for strict
compliance with this section and that no reduction in limits by endorsement during the policy
term, or cancellation of this insurance shall be effective without 30 days prior written notice to
the City. Compliance with the foregoing requirements shall not relieve the Firm of its liability and
obligations under this agreement.
Termination for Cause.
Either party may terminate this agreement prior to the expiration of the initial term on
account of a material breach of this agreement by the other party, which has not been cured
within five (5) days from the date of receipt of written notice of breach from the party seeking.
termination. Termination shall be effective as of the end of the notice period in the case of any
uncured material breach. The City shall have no liability to the firm for future profits or losses in
the event of termination for default. The rights and remedies of the City provided in this
provision shall not be exclusive and are in addition to any other rights and remedies provided by.
law or under this agreement. Should Firm provide the City with written notice of cancellation of
agreement, Firm will be required to refund a pro -rata share of the compensation identified herein.
Termination for the Convenience of the City
The City may terminate this agreement at any time by giving thirty (30) days notice in writing to
the Firm. If the agreement is terminated by the City as.provided herein, we shall be paid for the
time provided and expenses incurred up to and including the termination date, as provided for in
the retainer. agreement. Only authorized time shall be reimbursed.
Right to Withhold
If work identified under this engagement letter is not performed in accordance with the terms
hereof, the City has the right to withhold any payment due to us, or any sums as the City may
deem ample to protect it against loss, or to ensure payment of claims arising there from, and, at
its option, the City may apply such sums in such manner as the City may deem proper to secure
itself or to satisfy such claims. The City will provide the Firm with ten (10) calendar days prior
written notice in the event that it elects to exercise its right to withhold under this Section.
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 11 of 14
Sovereian Immunity and Attorneys' Fees
The City does not waive sovereign immunity for any claim for breach of contract except to
amount of the contract; provided, however, that in an action arising out of or to. enforce this
agreement, the prevailing party shall be entitled to its reasonable attorney's -fees -and costs,
including, but not limited to paralegal costs, and computer research costs. The City shall not be
liable for the prejudgment interest.
Sole Agreement
This engagement letter and accompanying attachments constitute the sole agreement between the
parties hereto and no amendment, modification or waiver or any of the terms and conditions .
hereof shall be valid unless in writing. Any prior oral or written agreements shall not be
considered a part of this agreement.
Notices
All notices given or required hereunder shall be - deemed sufficient if sent United States mail,
postage prepaid, to the address of the firm and to the City specified in this Agreement, unless
either party hereto shall specify to the other party a different address for the giving of such
notices.
Jurisdiction and Venue
Florida law shall govern the terms of this engagement letter. If any term, covenant or condition
of this engagement letter shall, to any extent, be invalid or unenforceable, the remainder of this
letter, or application of such term, . covenant or condition to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term,
covenant or condition of this letter shall be valid and enforced to the fullest extent permitted by
law. Venue shall be in state or federal court within Miami -Dade County, Florida.
Record Retention
The Firm shall comply with Chapter 119; Florida Statutes, public record retention requirements
and shall maintain a copy of all documents reflecting services rendered, including work papers,
to City for at least five (5) years after the date the auditors' report is issued or for any additional
period requested by a cognizant agency, oversight agency for audit, or pass - through entity, and
final payment has been made and all other pending matters are closed. Further, the Firm shall be
provided access to the City, to any government authority, or any other person pursuant to a
public records request, to any books, documents, papers, and records which are directly pertinent
to this audit retainer agreement for the purpose of making audit, examination, excerpts and
transcriptions.
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 12 of 14
Contingency Fee And Code Of Ethics Warranty
The Firm warrants that neither it, nor any principal, employee, agent, representative or family
member has promised to pay, and contractor has not, and will not, pay a fee. the amount of which
is contingent upon the City awarding this agreement to contractor. . The Firm warrants that
neither it, nor any principal, employee, agent, representative or family member has procured, or
attempted to procure, this agreement in violation of any of the provisions of the Miami -Dade
County or the City of South Miami conflict of interest and code of ethics ordinances. A violation
of this section will result in the termination of the agreement and forfeiture of funds paid, or to
be paid, to the contractor. The Firm maintains a drug free work place.
Conflict of Interest
The Finn and its associates covenant that they have no interest and will not acquire any interest,
direct or indirect, which would conflict in any manner or degree with the performance of services
required to be performed under this agreement. The Firm is to comply with the Copeland "Anti -
Kickback" Act (18 U.S.C. 874), as supplemented in Department of Labor Regulations (29 CFR
Part 3).
Non - Discrimination
No person shall be excluded from participating in, be denied the proceeds of, or be subject to
discrimination in the performance of this agreement on account of race, creed, color, sex,
religion, age or disability. Such action shall include, but not be limited to the following:
employment, upgrading, demotion, or transfer, recruitment or recruitment advertising, lay -off or
termination, rates of pay or other forms of compensation; and selection for training, including
apprenticeship.
Miscellaneous Provision
In the event a court must interpret any word or provision of this agreement, the word or provision
shall not be construed against either party by reason of drafting or negotiating this auditor
retainer agreement.
Entire Contract
This auditor retainer agreement, when signed by all of the parties, constitutes the full and
complete understanding and agreement of all parties and may not be in any manner interpreted or
fulfilled in contradiction of its express terms. This agreement and the incorporated attachments
constitute the entire understanding between the parties and integrates by its terms all previous
contracts, agreements or understandings, oral or written, between the parties. In the event of any
conflict, the terms of this agreement will govern over the provisions of any incorporated
documents.
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 13 of 14
SeverabW
Should any section or any part of any section of this agreement be rendered void, .invalid or
unenforceable by any court of law, for any reason, such determination shall not render void,
invalid or unenforceable any other section or part of any section of this agreement.
Anti - Kickback Guaranty
We at the Firm certify that our principal officers and members do not have and have not had
during any period covered by this audit any interest, direct or indirect, in the City or any of its
members or officials.
We at the Firm warrant that we have not employed any person to solicit or secure this
engagement upon any agreement for a commission, percentage, brokerage, or contingent fee.
Breach of this warranty shall give the City the right to terminate this engagement, or, in its
discretion, to deduct from our fee the amount of any such commission, percentage, brokerage, or
contingent fee.
Assignability of Engagement
We further affirm that we shall not assign or transfer any interest in this engagement except that
claims for monies due or to become due from the City under this engagement may be assigned to
a bank, trust company, or other financial institution.
This letter constitutes the complete and exclusive statement of agreement between the Firm and
the City, superseding all proposals oral or written and all other communication, with respect to
the terms of the engagement between the parties.
We appreciate the opportunity to be of service to the City of South Miami and believe this letter
accurately summarizes the significant terms of our engagement. if you have any questions,
please let us know. If this letter defines the arrangements as you understand them, please sign
and date the enclosed copy and return it to us. Thank you for this opportunity to be of assistance.
Very truly yours,
Principal of Authorized Auditing Firm
Name: Carlos M. Trueba, CPA
Rodriguez, Trueba & Co., CPA
Letter to Yvonne Soler - McKinley
City of South Miami, Florida
Page 14 of 14
Enclosures
RESPONSE:
AGREED TO AND. ACCEPTED:
City of South Miami
Dated: is ! , 2007