11-01-04 Item 4CITY OF SOUTH MIAMI
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INTER- OFFICE MEMORANDUM
To: Mayor and City Commission Date: October 27, 2004
From: Maria Davis Re: AGENDA ITEM 4
City Manager Commission Mtg. II/l/04
Selection of Financial Auditor
REQUEST
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
CABALLERO & CASTELLANOS, P.L. WITH THE OPTION TO RENEW FOR ONE
YEAR, IF SO DESIRED BY THE CITY, AND PROVIDING AN EFFECTIVE DATE.
BACKGROUND
Last year, the City Commission approved the engagement of Gran and Company accounting firm
to provide financial audit services to the City for a period of two years, with the option to renew
for one year.
The company performed a financial audit of FY 2002 -2003 for the City before the partner in
charge of our account informed us that they would not be able to continue providing the service
because of unexpected staff shortages.
Because of this, the City Administration solicited bids for financial audit services through the
Miami Herald and our website, and received responses from five different firms for
consideration. These bids were reviewed by a three - member selection committee comprised of
professionals from several other cities in Miami -Dade County. These professionals
recommended, as their first choice, the firm of Caballero and Castellanos, P.L. to perform the
audit services.
Payment for the services will be charged to account #:001.2100.519.3210, which has a current
balance of $50,000.
RECOMMENDATION
Because of the reasonableness of the fee quoted by the firm of Caballero and Castellanos, P.L.,
and the apparent understanding of the overall setup of the City, most especially the accounting
structure, we concur with the recommendation of the selection committee. A partner of the firm
was with Grau and Company last year, and participated in the audit of our books.
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RESOLUTION NO.
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 CABALLERO & CASTELLANOS, P.A., WITH
THE OPTION TO RENEW FOR ONE YEAR, IF SO DESIRED BY THE CITY,
AND PROVIDING 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 Gran and Company last year for a two -year
period to audit its books; and
WHEREAS, the City has been informed by the representative of Grau and Company that
because of their unexpected present situation of severe staff shortage, they will not be able to continue
performing audit services for the City; and
WHEREAS, the City Administration solicited bids for financial audit services and received
responses from five different firms with license to operate within the State of Florida; and
WHEREAS, the bids were reviewed by a committee of three professional employees from other
Miami -Dade cities, who provided recommendations for the City to hire the firm of Caballero and
Castellanos, P.L.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF SOUTH MIAMI, FLORIDA, THAT:
Section 1. The City Manager is authorized to engage the firm of Caballero and Castellanos, P.L.
to provide financial auditing services for the City.
Section 2. The City Manager is authorized to sign the service contract for two years with the
option to renew for an additional year, if so desired by the City.
Section 3. This resolution shall take effect immediately upon approval.
PASSED AND ADOPTED this day of , 2004.
ATTEST: APPROVED:
CITY CLERK
READ AND APPROVED AS TO FORM:
CITY ATTORNEY
MAYOR
Commission Vote:
Mayor Russell:
Vice Mayor Palmer:
Commissioner Wiscombe:
Commissioner Birts- Cooper:
Commissioner Sherar:
Blazek, Charles
From: Oshikoya, Hakeem
Sent: Tuesday, October 26, 2004 7:52 PM
To: Blazek, Charles
Subject: FW: Financial Auditor RFPs
- - - -- Original Message---- -
From: Oshikoya, Hakeem
Sent: Friday, October 22, 2004 7:44 PM
To: Davis, Maria
Subject: FW: Financial Auditor RFPs
- - - -- Original Message---- -
From: Casals, Rafael [ mailto :casalsrCtownofmiamilakes.com]
Sent: Wednesday, September 22, 2004 4:47 PM
To: hoshikoyaCcityofsouthmiami.net
Subject: Financial Auditor RFPs
Hakeem
Thanks for the opportunity to review South Miami's Financial Auditor's RFPs.
Based on my review, the following ranking was given:
1: Caballero and Castellanos
2: RTC - CPAs
3: Harvey, Branker Assoc.
4: Moore Stephens Lovelave, PA
5: Averett, Warmus, Durkee...
The above ranking is based on the criteria stipulated in South Miami's RFP process.
If you have any questions, please contact me.
Sincerly,
Rafael G. Casals
Assistant Town Manager
Town of Miami Lakes
Sent from my BlackBerry Wireless Handheld
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Page 1 of 1
Blazek, Charles
From: Oshikoya, Hakeem
Sent: Tuesday, October 26, 2004 7:52 PM
To: Blazek, Charles
Subject: FW: Audit Firm Rankings
From: Oshikoya, Hakeem
Sent: Friday, October 22, 2004 7:43 PM
To: Davis, Maria
Subject: FW: Audit Firm Rankings
Fyi
From: MACCIANO LEWIS [mailto:MLEWIS @hollywoodfl.org]
Sent: Tuesday, September 28, 2004 5:28 PM
To: hoshikoya @cityofsouthmiami.net
Subject: Audit Firm Rankings
Good Day Hakeem:
Please see attached.
I read through the proposals and found that, inherently, each specification was met to a certain extent. In my
review process, I decided to focus on two areas... governmental experience and cost (being that I am a budget
person).
As outlined in the spreadsheet, I have selected Cabellero & Castellanos, P.L. as my number one choice. A
number of factors drove me to this decision. They seem to have extensive experience with municipalities of
South Miami's size. More so, they've work with your municipality, thus I can only guess that they have "insider"
knowledge of what is going on financially within the City. Yearly costs don't hurt either! The attached
spreadsheet is self - explanatory.
Thanks for having me on your committee. If I can be of further assistance, please let me know. As we
discussed, if you need the preceeding information in a formal memo, I can provide it for you.
Moss
954 - 921 -3360
10/27/2004
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Blazek, Charles
From: Oshikoya, Hakeem
Sent: Tuesday, October 26, 2004 7:52 PM
To: Blazek, Charles
Subject: FW: Auditor Selection
- - - -- Original Message---- -
From: Oshikoya, Hakeem
Sent: Friday, October 22, 2004 7:42 PM
To: Davis, Maria
Subject: FW: Auditor Selection
Below is the recommendation on the new auditor. I will forward the other two
recommendations. I will discuss this with you further when I come back. Thanks.
- - - -- Original Message---- -
From: Perez, Carlos [ mailto:CPerez @northmiamifl.gov]
Sent: Wednesday, October 13, 2004 3:34 PM
To: ' hoshikoya @cityofsouthmiami.net'
Subject: Auditor Selection
Hakeem,
My apologies for the late submission.
After reviewing the five proposals for audit services at the City of South Miami, I have
ranked the five firms, with 111" being the highest, as follows:
Rank Audit Firm
1 Caballero & Castellanos, P.L.
2 Rodriguez, Trueba & Co., P.A.
3 Moore Stephens Lovelace, P.A.
4 Averett, Warmus, Drkee, Bauder & Thompson, P.A.
5 Harvey, Branker & Associates, P.A.
In the absence of any grading or point scale, I used the information enumerated under
section E of the RFP, as the criteria points for evaluation. I gave the following areas
the heaviest weighting (10 -15 points)
* Identification of Personnel /Resumes
* Firm Experience (principals experience)
* Similar Engagements
* Work Plan
Secondary areas were (5 points)
* Statement of Understanding
* Firm Description
* Seminars offered to clients
The areas of least impact, they either had it or they didn't (2 -3 points)
* ITB form
* Independence affirmation
* Quality of Work affirmation
1
* Peer Review information
* Office location
* Licensed
* Additional services offered
* Public entities crime form
The spread between the top ranked and lowest ranked was only 6 points, so the results of
my review were very close overall, while they varied under individual criteria. While the
firm of Caballero & Castellanos was only established in March 2004, the principals, Elias
and Nestor have significant experience in governmental audits. Additionally, staffing
provided for the audit, would be at a much greater level than with other firms.
Good luck, and call me if you have any questions.
Carlos M. Perez
Carlos M. Perez
Finance Director
City of North Miami
cperez @northmiamifl.gov
305- 893 -6511 extension 2125
305 - 891 -2617 (fax)