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HomeMy WebLinkAbout2010-182 INDEPENDENT AUDITING SERVICES AGREEME14 !N� POO This Independent Auditing Services Agreement ( "Agreement" ) is entered into this OtKe day of July , 2010 , by and between Indian River County , a political subdivision of the State of Florida , 1801 27th Street , Vero Beach , FL 32960 ( " County " ) and Harris , Cotherman , Jones , Price & Associates C . P . A . ' s Chartered , a Florida corporation , having a principal place of business at 5070 N . Highway A1A , Suite 250 , Vero Beach , FL 32963 ("Auditor") . BACKGROUND RECITALS A . Pursuant to Florida Statutes section 218 . 391 , as amended by Chapter 2005 - 32 , effective July 1 , 2005 , the County issued a Request for Proposals for independent auditing services . B . Pursua nt to applicable Florida law and the Request for Proposals , the County ' s duly- constituted Auditor Selection Committee received proposals and ranked the firms that responded to the Request for Proposals based on the evaluative criteria set forth in the Request for Proposals . C . The Auditor was the highest ranked respondent to the Request for Proposals and on July 6 , 2010 , the County approved the Auditor Selection Committee recommendation to appoint Auditor to provide the independent auditing services set forth in the Request for Proposals and this Agreement . D . Auditor is willing and able to perform the services as set forth in this Agreement on the terms and conditions set forth below . E . Th e County and the Auditor wish to enter into this Agreement for the independent auditing services as set forth below . NOW , THEREFORE , for good and valuable consideration , the receipt and sufficiency of which is hereby acknowledged , and intending to be legally bound hereby , the parties hereby agree as follows : 1 . DESCRIPTION OF COUNTY RECORDS TO BE AUDITED . The records of the County that will be audited by Auditor , pursuant to this Agreement , are as set forth in Exhibit "A " attached hereto and incorporated herein by this reference in its entirety . 2 . SCOPE OF INDEPENDENT AUDITING SERVICES . The scope of independent audit services provided under this Agreement shall be in accordance with the provisions of Florida Statutes section 11 . 45 , as may be amended from time to time , and more specifically set forth in Exhibit " B " attached hereto and incorporated herein by this reference in its entirety ( " Services " ) . The Services are to be performed in accordance with generally accepted auditing standards in addition to the following : 1 ) Section 11 . 45 , Florida Statutes ; 2 ) Regulations of the Florida Office of Financial Regulation ; 3 ) Rules of the Auditor General ( Chapter 10 . 550 , Local Government Entity Audits ) ; 4 ) Audit and Accounting Guide - Audits of State and Local Governmental Units ( "AICPA Guide " ) ; 5 ) Single Audit Act ; 6 ) Standards for Audit of Governmental Organizations , Programs , Activities , and Functions , published by the Comptroller General of the United States ; 7 ) U . S . Office of Management and Budget , Circular 1 No . A- 133 , Audits of States , Local Governments , and Non - Profit Organizations ; and 8 ) General Accounting Offices ( GAO ) Government Auditing Standards . Auditor agrees that each audit prepared under this Agreement shall conform to the requirements set forth herein . The County is progressive in its attitude toward new accounting standards , and early implementation is practiced when recommended . 3 . AUDIT RESPONSIBILITIES . 3 . 1 . The " General Matters , " consisting of pages 5 through 8 of the Auditor' s Proposal for Independent Auditing Services , and "Audit Approach , " consisting of pages 29 through 38 , all set forth in Exhibit " C " attached hereto and incorporated herein by this reference in their entirety , set forth the framework under which the Services will be performed under this Agreement . 3 . 2 . The County has received the Government Finance Officers Association 's Certificate of Achievement for Excellence in Financial Reporting for the 1983 through 2008 Comprehensive Annual Financial Reports ( " CAFR " ) . The CAFR for each of the fiscal years covered by this Agreement will be submitted for consideration for such Certificate . Auditor shall provide technical assistance to help the County meet the requirements to attain such Certificate . 3 . 3 . Auditor acknowledges and agrees that it possesses the ability to store all working papers and reports at the Auditor' s expense for a minimum of five years , unless Auditor is notified by the County to extend the retention period . The Auditor will be required to make working papers available , upon request , to the following parties or their designees : the County ; U . S . Department of Housing and Urban Development ; General Accounting Office ; parties to an audit quality review process ; and auditors of entities of which the County is a recipient of grant funds . In addition , Auditor shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers . 3 . 4 . Auditor agrees to comply with all applicable Federal , State , and local laws and regulations applicable to the furnishing of the Services set forth in this Agreement , and any provisions required thereby to be included herein shall be deemed to be incorporated herein by reference . 4 . ADDITIONAL SERVICES . It is the intent of the County that future additional audit requirements , imposed on the County by applicable national and state agencies , shall be provided by the Auditor under this Agreement and included in the negotiated compensation in this Agreement . The Auditor acknowledges and agrees that any future additional audit requirements , imposed on the County by applicable national and state agencies , are included within the negotiated compensation set forth in this Agreement . 5 . AUDITOR PROJECT TEAM . The Auditor shall assign members of its staff as the Auditor' s Audit Team , as contained in the " Personnel Qualifications and Experience " section consisting of pages 14 through and including 15 of the Auditor' s Proposal for Independent Auditing Services , attached hereto as Exhibit " D " and incorporated herein by this reference in its entirety . The Auditor agrees that the County shall have the right to approve the Auditor' s Audit Team , and that the Auditor shall not change any manager of its Audit Team without prior written notice to the County . Furthermore , if any manager of the Auditor' s Audit Team is removed from providing Services under this Agreement , or employment is otherwise 2 e terminated or curtailed by the Auditor , or if any manager of the Auditor' s Audit Team terminates employment with the Auditor , then the Auditor shall promptly replace its Audit Team manager with a person of comparable experience and expertise , who shall also be subject to the County ' s approval . The County acknowledges and agrees that its approval shall not be unreasonably withheld . 6 . COMPENSATION . 6 . 1 . The County shall pay to the Auditor a mutually agreed upon not-to -exceed annual professional fee of $ 179 , 850 ( One Hundred and Seventy- nine Thousand Eight Hundred and Fifty Dollars ) for each year of the term of this Agreement , payable as follows in each calendar year: October $40 , 000 ; November $ 36 , 000 ; December $40 , 000 ; January $ 36 , 000 ; February $ 9 , 865 ; and $ 17 , 985 upon completion of the audit . 6 . 2 . Proper Invoices , phased as set forth herein , shall be submitted to the County ' s Finance Department in detail sufficient for proper prepayment and post payment audit . All payments for services shall be made to the Auditor by the County in accordance with the Florida Prompt Payment Act (2004 ) , Section 218 . 70 , Florida Statutes , et seq . , attached hereto and incorporated herein by this reference in its entirety . 7 . INSURANCE , 7 . 1 . The Auditor shall not commence to perform the Services under this Agreement until it has obtained all the insurance required under this Agreement , and such certificates of insurance have been approved by the County ' s Risk Manager . A certificate of insurance shall be provided to the County ' s Risk Manager for review and approval ten ( 10 ) days prior to commencement of any work under this Agreement . The insurance company must have a rating by A . M . Best Company of at least A : V . Such certificates of insurance or an endorsement provided by the Auditor must state that the County will be given thirty ( 30 ) days prior written notice prior to cancellation or material change in coverage . The County shall be named as an additional insured on all policies except workers ' compensation . 7 . 2 . Auditor shall procure and maintain , for the duration of this Agreement , the minimum insurance coverage as set forth herein . The cost of such insurance shall be included in the Auditor' s fee : 7 . 2 . 1 . Workers ' compensation to meet statutory limits in the State of Florida and Employer' s Liability with a limit of $ 100 , 000 for each accident , $ 500 , 000 disease ( policy limit) and $ 100 , 000 disease (each employee ) . 7 . 2 . 2 . Commercial General Liability with a minimum combined single limit of $ 1 , 000 , 000 per occurrence for bodily injury and property damage . This is to include premises/operations , products/completed operations , contractual liability and independent contractors coverage . 7 . 2 . 3 . Business Auto Liability with a minimum combined single limit of $ 1 , 000 , 000 per occurrence for bodily injury and property damage . This is to include owned , hired , and non - owned autos . 3 7 . 2 . 4 . Professional liability with a minimum limit of $ 1 , 000 , 000 per occurrence . 7 . 3 . The County is to be an additional insured on the commercial general liability and business liability policies . The County will be given 30 days notice prior to cancellation or modification of any insurance . Such notification shall be in writing by registered mail , return receipt requested and addressed to the Risk Manager . It is the responsibility of the contractor to insure that all subcontractors comply with all insurance requirements . 7 . 4 . The County , by and through its Risk Manager , reserves the right periodically to review any and all policies of insurance and reasonably to adjust the limits of coverage required hereunder , from time to time throughout the term of this Agreement . In such event , the County shall provide the Auditor with separate written notice of such adjusted limits and Auditor shall comply within thirty ( 30 ) days of receipt thereof. The failure by Auditor to provide such additional coverage shall constitute a default by Auditor and shall be grounds for termination of this Agreement by the County . 8 . TERM ; TERMINATION . 8 . 1 . This Agreement shall remain in effect for a term of five ( 5 ) years , subject to sooner termination as provided herein . The Auditor acknowledges and agrees that the completion of the audit for the County ' s 2013 -2014 fiscal year is specifically included with the term of this Agreement , subject to sooner termination as provided herein . 8 . 2 . This Agreement may be terminated : ( a ) by the County , for any reason , upon at least ninety ( 90 ) days ' prior written notice to the Auditor ; or ( b ) by the Auditor , for any reason , upon at least ninety ( 90 ) days ' prior written notice to the County ; or ( c ) by the mutual agreement of the parties ; or d ) as may otherwise be provided below . In the event of the termination of this Agreement , any liability of one party to the other arising out of any Services rendered , or for any act or event occurring prior to the termination , shall not be terminated or released . 8 . 3 . In the event of termination by the County , the County ' s sole obligation to the Auditor shall be payment for those portions of satisfactorily completed work under this Agreement . Such payment shall be determined on the basis of the hours of work performed by the Auditor , or the percentage of work complete as estimated by the Auditor and agreed upon by the County up to the time of termination . In the event of such termination , the County may , without penalty or other obligation to the Auditor , elect to employ other persons to perform the same or similar services . 8 . 4 . The obligation to provide services under this Agreement may be terminated by either party upon seven ( 7 ) days prior written notice in the event of substantial failure by the other party to perform in accordance with the terms of this Agreement through no fault of the terminating party . 8 . 5 . In the event that the Auditor merges with another company , becomes a subsidiary of, or makes any other substantial change in structure , the County reserves the right to terminate this Agreement in accordance with its terms . 4 8 . 6 . In the event of termination of this Agreement , the Auditor agrees to provide copies of any and all documents prepared by the Auditor for the County in connection with this Agreement . 9 , INDEPENDENT CONTRACTOR . It is specifically acknowledged and agreed by the parties hereto that the Auditor is and shall be , in the performance of all Services and activities under this Agreement , an independent contractor , and not an employee , agent , or servant of the County . All persons engaged in any of the Services performed pursuant to this Agreement shall at all times , and in all places , be subject to the Auditor' s sole direction , supervision , and control , The Auditor shall exercise control over the means and manner in which Auditor and its employees perform the Services , and in all respects the Auditor' s relationship and the relationship of its employees to the County shall be that of an independent contractor performing solely under the terms of the Agreement and not as employees , agents , or servants of the County . 10 . MERGER ; MODIFICATION . This Agreement incorporates and includes all prior and contemporaneous negotiations , correspondence , conversations , agreements or understandings applicable to the matters contained herein and the parties agree that there are no commitments , agreements , or understandings of any nature whatsoever concerning the subject matter hereof that are not contained in this document . Accordingly , it is agreed that no deviation from the terms hereof shall be predicated upon any prior or contemporaneous representations or agreements , whether oral or written . No alteration , change , or modification of the terms of this Agreement shall be valid unless made in writing and signed by the Auditor and the County . 11 . GOVERNING LAW ; VENUE . This Agreement , including all attachments hereto , shall be construed according to the laws of the State of Florida . Venue for any lawsuit brought by either party against the other party or otherwise arising out of this Agreement shall be in Indian River County , Florida , or , in the event of federal jurisdiction , in the United States District Court for the Southern District of Florida . 12 . REMEDIES ; NO WAIVER . All remedies provided in this Agreement shall be deemed cumulative and additional , and not in lieu or exclusive of each other or of any other remedy available to either party , at law or in equity . Each right , power and remedy of the parties provided in this Agreement shall be cumulative and concurrent and shall be in addition to every other right , power or remedy provided for in this Agreement or now or hereafter existing at law or in equity or by statute or otherwise . The failure of either party to insist upon compliance by the other party with any obligation , or exercise any remedy , does not waive the right to do so in the event of a continuing or subsequent delinquency or default . A party ' s waiver of one or more defaults does not constitute a waver of any other delinquency or default . If any legal action or other proceeding is brought for the enforcement of this Agreement or because of an alleged dispute , breach , default , or misrepresentation in connection with any provisions of this Agreement , each party shall bear its own costs . 13 . SEVERABILITY . If any term or provision of this Agreement , or the application thereof to any person or circumstance shall , to any extent , be held invalid or unenforceable for the remainder of this Agreement , then the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be 5 affected , and every other term and provision of this Agreement shall be deemed valid and enforceable to the extent permitted by law . 14 . AVAILABILITY OF FUNDS . The obligations of the County under this Agreement are subject to the availability of funds lawfully appropriated for its purpose by the Board of County Commissioners of Indian River County . 15 . NO PLEDGE OF CREDIT , The Auditor shall not pledge the County' s credit or make it a guarantor of payment or surety for any contract , debt , obligation , judgment , lien , or any form of indebtedness . 16 . PUBLIC RECORDS . The Auditor shall comply with the provisions of Chapter 119 , Florida Statutes ( Public Records Law) in connection with this Agreement . 17 . NOTICES . Any notice , request , demand , consent , approval , or other communication required or permitted by this Agreement shall be given or made in writing and shall be served , as elected by the party giving such notice , by any of the following methods : ( a ) Hand delivery to the other party ; ( b ) Delivery by commercial overnight courier service ; or ( c) Mailed by registered or certified mail ( postage prepaid ) , return receipt requested at the addresses of the parties shown below : County : Indian River County Attn : Diane Bernardo , Finance Director , Project Manager 1801 27th Street , Vero Beach , FL 32960 - 3365 Phone : ( 772 ) 226 - 1205 ; Facsimile : ( 772 ) 770- 5331 Auditor : Harris , Cotherman , Jones , Price & Associates Attn : Robert R . Harris , Managing Director 5070 N . Highway A1A Vero Beach , FL 32963 Phone : ( 772 ) 234 - 8484 , Facsimile : ( 772 ) 234 - 8488 Notices shall be effective when received at the address as specified above . Facsimile transmission is acceptable notice effective when received , provided , however , that facsimile transmissions received ( i . e . , printed ) after 5 : 00 p . m . or on weekends or holidays , will be deemed received on the next day that is not a weekend day or a holiday . The original of the notice must additionally be mailed . Either party may change its address , for the purposes of this section , by written notice to the other party given in accordance with the provisions of this section . 18 . SURVIVAL . Except as otherwise expressly provided herein , each obligation in this Agreement to be performed by Auditor shall survive the termination or expiration of this Agreement . 19 . CONSTRUCTION . The headings of the sections of this Agreement are for the purpose of convenience only , and shall not be deemed to expand , limit , or modify the provisions contained in such Sections . All pronouns and any variations thereof shall be deemed to refer to the masculine , feminine or neuter , singular or plural , as the identity of the party or parties may require . The parties hereby acknowledge and agree that each was properly represented 6 by counsel and this Agreement was negotiated and drafted at arm ' s - length so that the judicial rule of construction to the effect that a legal document shall be construed against the draftsperson shall be inapplicable to this Agreement . 20 . COUNTERPARTS . This Agreement may be executed in one or more counterparts , each of which shall be deemed to be an original copy and all of which shall constitute but one and the same instrument . 21 . GENERAL . The Background Recitals are true and correct and form a material part of this Agreement . IN WITNESS WHEREOF , the County and the Auditor have caused this Agreement to be executed in their respective names as of the date first set forth above . Auditor : INDIAN RIVER COUNTY Harris , Cotherman , Board of County Commissioners Jones ,, Price & Associates /!- \( I j/�� O ( sign ) B Otl00ee0000pp; ODD Printed name/. `� Peter D . O ' Bryan , Ch man do :; e':�c, Witness : Attest : J . K arton , Clerk e ( sign ) B •• . "'; . ��4 Deputy Cler _`F UN�V . Printed name : Approved by BCC : July 20 , 2010 1 U App ved : By Jos p A , aird County Administrator Approved as to form and legal sufficiency : By Com, County Attorney 7 EXHIBIT A Description of Indian River County and Records to be Audited 1 ) Indian River County encompasses approximately 497 square miles of land with an estimated population of 122 , 251 . It is located on the east coast of Florida , approximately 135 miles north of Miami and 100 miles east-southeast of Orlando . The City of Vero Beach is the County seat . 2 ) For reporting purposes , the Comprehensive Annual Financial Report will include the Board of County Commissioners , the Clerk of the Circuit Court , the Property Appraiser , the Sheriff, the Supervisor of Elections , and the Tax Collector . Also included in the financial statements are two blended component units , the Solid Waste Disposal District and the Emergency Services District . In addition , the Indian River County Housing Authority is included as a discretely presented component unit . 3 ) Accounting records for the Board of County Commissioners , including the Solid Waste Disposal District and the Emergency Services District , are maintained by the Clerk of the Circuit Court' s Finance Department , The Board ' s records include a general fund , 29 special revenue funds ( 29 reporting funds , rolled from 51 individual funds ) , 2 debt service funds , 2 capital projects funds , 4 enterprise funds , 3 internal service funds , 1 agency fund , an OPEB Trust fund , a general fixed assets account group , and a general long -term debt account group . The FY 2009 total operating and capital budget for the Board is approximately $ 201 . 9 million . Enterprise funds are used to account for the County' s Golf Course , Building Department , Water and Sewer Systems , and the Solid Waste Disposal District . 4 ) Accounting records for the Clerk of the Circuit Court are maintained by the Clerk' s staff. The Clerk ' s records include a general fund , 4 special revenue funds , 8 agency funds , and a general long -term debt account group . The total FY 2009 budget for the Clerk is approximately $ 6 . 6 million . 5 ) Accounting records for the Property Appraiser are maintained by the Property Appraiser' s staff. The Property Appraiser' s records include a general fund , an agency fund , and a general long -term debt account group . The total FY 2009 budget for the Property Appraiser is approximately $ 3 . 2 million . 6 ) Accounting records for the Sheriff are maintained by the Sheriffs staff. The Sheriffs records include a general fund , special revenue funds , agency funds , one expendable trust fund , a general fixed assets account group , and a general long -term debt account group . The total FY 2009 budget for the Sheriff is approximately $41 . 1 million . 7 ) Accounting records for the Supervisor of Elections are maintained by the Supervisor' s staff . The Supervisor' s records include a general fund , a special revenue fund , and a general long -term debt account with a budget of approximately $ 1 . 3 million . 1 8 ) The Tax Collector' s staff maintains accounting records for the Tax Collector . The Tax Collector' s records include a general fund , agency funds , and a general long -term debt account group . The total budget for the Tax Collector is approximately $ 3 . 2 million . 9 ) The Indian River County Housing Authority maintains records for two projects valued at approximately $ 9 million . The operating expenditures of the Housing Authority are included in the Board of County Commissioners ' records as a special revenue fund . The financial statements of the Housing Authority are included as a discretely presented component unit in the Government-wide Financial Statements of the Comprehensive Annual Financial Report . A separate financial report is also prepared for the Authority . 10 ) All accounting records are maintained on the modified accrual basis or accrual basis as appropriate . 11 ) Budgets are integrated with the accounting records . 12 ) The County has determined that the U . S . Department of Housing and Urban Development will function as the cognizant agency in accordance with provisions of the Single Audit Act and OMB Circular A- 133 . 2 EXHIBIT B Services Required 1 ) An audit and an opinion on the basic financial statements for the County and for the Board and for each Constitutional Officer . Financial statements are to be prepared in accordance with GASB Statement 34 , 2 ) The audit is to be done in accordance with the Rules of the Auditor General , Chapter 10 . 550 , the Single Audit Act , OMB Circular A- 133 , the GAO Yellow Book , Government Auditing Standards , and the AICPA Auditing Standards . 3 ) Review and recommendation for required note disclosures for the County ' s Comprehensive Annual Financial Report . 4 ) Following the completion of the audit of the fiscal year' s financial statements , the auditor shall issue the following reports for the County and each individual constitutional officer : a . A report on the fair presentation of the financial statements in conformity with general accepted accounting principles . b . A report on the internal control structure based on the auditors ' understanding of the control structure and assessment of control risk . c . A report on compliance with applicable laws and regulations . d . Reports on compliance with specific requirements applicable to federal and state financial assistance programs . e . The auditor shall communicate in a letter to management any reportable conditions found during the audit for each constitutional office . f. Other reports as required by law or other governing bodies . 5 ) A Component Unit Financial Report for the Indian River County Housing Authority . 6 ) Special Reports for the Board of County Commissioners : a . Schedule of Activity Landfill Management Escrow Account as prepared in accordance with Rules 62 -701 . 630 ( 5 ) and 62 -701 . 730 ( 11 ) , Florida Administrative Code . b . Data Collection Form to the Federal Audit Clearinghouse ( SF - SAC ) as required by OMB Circular A- 133 . c . Review of Annual Financial Report due to Department of Financial Services . 7 ) Special Reports for the Clerk of the Circuit Court : a . Statement of County Funded Court- Related Functions as required by 29 . 008 Florida Statutes . b . Statement of compliance for budget and performance measures as required by 28 . 35 and 28 . 36 . c . Other compliance reports as required by the State or regulatory organizations . 8 ) Assistance in providing guidance and implementing changes in governmental accounting standards . 1 EXHIBIT C Consist of 15 pages containing the PROPOSAL FOR INDEPENDENT AUDITING SERVICES . 3 INDIAN RIVER COUNTY BOARD OF COUNTY COMMISSIONERS REQUEST FOR PROPOSAL 2010047 Introduction Indian River County, Florida (the " County") , is requesting proposals from qualified firms of certified public accountants to audit its financial statements for the fiscal years ending September 30 , 20103 2011 , 2012 , 2013 and 2014 . These audits are to be performed in accordance with generally accepted auditing standards in addition to the following : ( 1 ) Section 11 . 45 , Florida Statutes (2) Regulations of the Florida Department of Financial Services (3 ) Rules of the Florida Auditor General (Chapter 10 . 550 , Local Government Entity Audits) (4) State and Local Government Audit and Accounting Guide ("the AICPA Guide") ( 5 ) Standards for Audit of Governmental Organizations , Programs , Activities , and Functions , published by the U . S . Government Accountability Office (6) U . S . Office of Management and Budget, Circular No . A- 133 , Audits of States , Local Governments , and Non -Profit Organizations (7) American Recovery and Reinvestment Act of 2009 (ARRA) ( 8 ) U . S . Department of Agriculture (USDA) , Rural Development rules and regulations I . General Information 1 ) The Audit Committee (the " Committee") is composed of the Clerk of the Circuit Court, the Property Appraiser, the Sheriff, the Supervisor of Elections , the Tax Collector, and one member of the Board of County Commissioners (the "BOCC ") , or their designee . 2) Questions regarding the Request for Proposal (RFP) are to be addressed to : Diane Bernardo Finance Director Clerk of the Circuit Court and Comptroller 1801 27th Street, Bldg A Vero Beach, FL 32960 Phone : (772 ) 226 - 1. 945 3 ) All responses to this RFP are to be addressed to : Jerry Davis Purchasing Manager Board of County Commissioners 180027 th Street, Bldg B Vero Beach, FL 32960 Phone (772) 226 - 1418 4 ) All responses to this RFP must be received as soon as possible , but no later than 2 : 00 PM on June 11 , 2010 at the address listed in 3 above . The original and eight ( 8 ) signed copies of your proposal shall be submitted in one sealed package , Page 2 clearly marked on the outside "RFP 42010047 Proposal for Independent Auditing Services . " Any responses received after the deadline will be returned to the proposer unopened . The County will not reimburse any costs incurred by the responding firms in preparing proposals in response to this request . 5 ) The Committee will recommend no fewer than three proposers to the Board of County Commissioners . The Committee reserves the right to reject any and all proposals submitted and to request additional information from the proposers . At the discretion of the Committee , firms submitting proposals will be requested to make oral presentations as part of the evaluation process . 6) The County reserves the right to retain all proposals submitted and to use any ideas in a proposal regardless of whether that proposal is selected . Submission of a proposal indicates acceptance by the firm of the conditions contained in this request for proposals , unless clearly and specifically noted in the proposal submitted and confirmed in the contract between the County and the firm selected . 7 ) Firms submitting proposals may subcontract portions of the engagement . If this is to be done , the name of the proposed subcontracting firms must be clearly identified in the proposal . Following the award of the audit contract, no additional subcontracting will be allowed without the express prior written consent of the County . Such consent may be withheld , conditioned , or denied at the sole discretion of the County . 8 ) Each member of the Committee will rank the proposers using a point formula by the set of criteria described in Section VIII (2) . The Clerk of the Circuit Court or his designee will combine the individual scores to arrive at a score for each firm . The BOCC or their designee will negotiate a contract with one of the proposers in accordance with Section 218 . 391 Florida Statutes . It is anticipated that the County will enter into a five -year contract starting with the October 1 , 2009 , through September 30 , 2010 , fiscal year . 9) RYP Calendar : May 14 , 2010 - Request for Proposal to be posted on DemandStar and advertised June 11 , 2010 - Responses to RFP due by 2 : 00 P . M . June 25 , 2010 - The Committee meeting to evaluate the RFP responses . At this meeting , the Committee may request an interview and/or develop a list of firms to make oral presentations . If no interviews or presentations are requested of the firms , then the Committee shall develop a short list of three firms Page 3 to recommend to the BOCC . Meeting will be held in room A2 -230 in Building A at 9 : 00 A . M . June 30 - July 2 , 2010 - If requested, the Committee will listen to oral presentations and/or interview firms . If the short list was not previously determined, then the Committee shall develop short list of three (3 ) firms to recommend to BOCC . Meetings will be held in the room A2 -230 in Building A at 9 : 00 A . M . and 1 : 30 P . M . July 7 , 2010 - Committee recommendations forwarded to County Administrator by 12 : 00 P . M . for July 13 , 2010 Board meeting July 13 , 2010 - BOCC to receive Auditor Selection Committee recommendations and select firm to provide audit services August 17 , 2010 - BOCC to approve contract for audit services 10) Audits for the last fourteen fiscal years were completed by Harris , Cotherman , Jones , Price & Associates . The Comprehensive Annual Financial Reports for the last nine fiscal years are available on line at www . clerk . indian-river . org (click on Finance button, then CAFR PDF files) . 11 ) The County does not have an internal audit department . 12 ) All requirements and conditions set forth in this RFP shall be incorporated into the contract between the County and the selected firm unless otherwise specified in the contract . II . Description of Indian River County and Records to be Audited 1 ) Indian River County encompasses approximately 497 square miles of land with an estimated population of 141 , 475 . It is located on the east coast of Florida, approximately 135 miles north of Miami and 100 miles east- southeast of Orlando . The City of Vero Beach is the County seat . 2) For reporting purposes , the Comprehensive Annual Financial Report will include the Board of County Commissioners , the Clerk of the Circuit Court, the Property Appraiser, the Sheriff, the Supervisor of Elections , and the Tax Collector . Also included in the financial statements are two blended component units , the Solid Page 4 Waste Disposal District and the Emergency Services District . In addition, the Indian River County Housing Authority is included as a discretely presented component unit . 3 ) Accounting records for the BOCC , including the Solid Waste Disposal District and the Emergency Services District, are maintained by the Clerk of the Circuit Court' s Finance Department . The BOCC ' s records include a general fund, 29 special revenue funds (29 reporting funds , rolled from 51 individual funds) , 2 debt service funds (2 reporting fiends , rolled from 3 individual funds) , 2 capital projects funds , 4 enterprise funds (4 reporting funds , rolled from 6 individual funds) , 3 internal service funds ( 3 reporting funds , rolled from 4 individual funds) , 1 agency fund, an OPEB Trust fund, a general fixed assets account group , and a general long -term debt account group . The FY 2009 operating and capital expenditures for the BOCC totaled $ 201 . 9 million . Enterprise funds are used to account for the County' s Golf Course , Building Department , Water and Sewer Systems , and the Solid Waste Disposal District . 4) Accounting records for the Clerk of the Circuit Court are maintained by the Clerk' s staff. The Clerk' s records include a general fund , 4 special revenue funds , 8 agency funds , and a general long-term debt account group . The FY 2009 operating and capital expenditures for the Clerk totaled $ 6 . 6 million . 5 ) Accounting records for the Property Appraiser are maintained by the Property Appraiser' s staff. The Property Appraiser' s records include a general fund, and a general long-term debt account group . The FY 2009 operating and capital expenditures for the Property Appraiser totaled $ 3 . 2 million . 6) Accounting records for the Sheriff are maintained by the Sheriffs staff. The Sheriffs records include a general fund, special revenue funds , agency funds , a general fixed assets account group , and a general long -term debt account group . The FY 2009 operating and capital expenditures for the Sheriff totaled $41 . 1 million . 7) Accounting records for the Supervisor of Elections are maintained by the Supervisor' s staff. The Supervisor' s records include a general fund , a special revenue fund , and a general long-term debt account group . The FY 2009 operating and capital expenditures for the Supervisor of Elections totaled $ 1 . 3 million . 8 ) The Tax Collector ' s staff maintains accounting records for the Tax Collector . The Tax Collector' s records include a general fund, agency funds , and a general long-term debt account group . The FY 2009 operating and capital expenditures for the Tax Collector totaled $ 3 . 2 million . Page 5 9) The Indian River County Housing Authority (IRCHA) maintains records through an outside management company for two complexes valued at approximately $ 9 million . While the tenant records are maintained at the complexes , the management company records are maintained out of state ; however monthly reports and transaction support/documents are available via scanned images . The employees and payroll records/reports of the complexes as well as the general ledger of the complexes are maintained by the outside management company . Grant funds of the IRCHA are processed through the BOCC records in a separate enterprise fund and will be audited in accordance with the provisions of the Single Audit Act, OMB Circular A- 133 , and USDA- Rural Development regulations . These grants are included in the IRCHA ' s financial statements . In addition to the two complexes ' records and grant funds , the expenses of the administrative staff and operations are paid by the BOCC and recorded in a special revenue fund . This special revenue fiend is also combined and is included in the financial statements of the IRCHA . The IRCHA is presented as a discretely presented component unit in the Government-wide Financial Statements of the Comprehensive Annual Financial Report . A complete separate financial report (including opinion, MD & A , financial statements , internal control , management letter, compliance reports for A- 133 and federal programs , and any other required report) is prepared and reported to the IRCHA Board . The Clerk of the Circuit Court staff assists with this stand- alone report . 10) All accounting records are maintained on the modified accrual basis or accrual basis as appropriate . 11 ) Budgets are integrated with the accounting records . 12) The County has determined that the U . S . Department of Housing and Urban Development (HUD ) will function as the cognizant agency in accordance with provisions of the Single Audit Act and OMB Circular A- 133 . The tenant files and compliance requirements of the Section 8 HUD program are maintained by the IRCHA but all financial transactions are recorded in a special revenue fund of the BOCC . Section 8 is included in the financial statements of the BOCC , not the IRCHA . 13 ) Indian River County has received the Government Finance Officers Association' s Certificate of Achievement for Excellence in Financial Reporting for the 1983 through 2008 Comprehensive Annual Financial Reports . The CAFR for each of the fiscal years covered by this RFP will be submitted for consideration for the Certificate . The selected firm will be expected to provide technical assistance to help the County meet the program ' s requirements . Page 6 14) Indian River County is progressive in its attitude toward new accounting standards . Early implementation is practiced when recommended . III . Services Required 1 ) An audit and an opinion on the basic financial statements for the County and for the BOCC and each Constitutional Officer (all combined in one report) , and the IRCHA (the latter for a separate report to their board members) . Financial statements are to be prepared in accordance with GASB Statement 34 . 2 ) The audit is to be done in accordance with the requirements listed in the introduction paragraph . 3 ) Review and make recommendation for required note disclosures for the County' s Comprehensive Annual Financial Report . 4) Following the completion of the audit of the fiscal year ' s financial statements , the auditor shall issue the following reports for the County and each individual constitutional officer and IRCHA : a. A report on the fair presentation of the financial statements in conformity with general accepted accounting principles . b . A report on the internal control structure based on the auditors ' understanding of the control structure and assessment of control risk . C . A report on compliance with applicable laws and regulations . d . Reports on compliance with specific requirements applicable to federal and state financial assistance programs . e . The auditor shall communicate in a letter to management any reportable conditions found during the audit for each constitutional office . f. Other reports as required by law or other governing bodies . 5 ) A Component Unit Financial Report for the Indian River County Housing Authority . 6) Special Reports for the BOCC : a . Schedule of Activity Landfill Management Escrow Account prepared in accordance with Rules 62 - 701 . 630 (5 ) and 62 - 701 . 730 ( 11 ) , Florida Administrative Code . b . Data Collection Form to the Federal Audit Clearinghouse ( SF - SAC) as required by OMB Circular A- 133 . c . Review of Annual Financial Report due to Department of Financial Services 7) Special Reports for the Clerk of the Circuit Court : a . Statement of County Funded Court-Related Functions as required by 29 . 008 Florida Statutes (currently due January .3 b . Statement of compliance for budget and performance measures as required by Florida Statutes 28 . 35 and 28 . 36 . Page 7 c . Other compliance reports as required by the State or regulatory organizations . 8 ) Assistance in providing guidance and implementing changes in governmental accounting standards . 9) If the County does issue debt, for which the official statement in connection with the debt contains basic financial statements and the report of independent accounts , the firm shall be required to issue a " consent and citation of expertise " as auditor and any necessary " comfort letters " at no additional cost to the County . 10) Irregularities and illegal acts . Auditors shall be required to make an immediate , written report of all irregularities and illegal acts to Clerk of the Circuit Court and County Administrator . IV . Additional Professional Services It is the intent of the Board that future additional audit requirements , imposed on the County by applicable national and state agencies , shall be provided by the auditor and included in the negotiated fee between the County and the auditing firm . V . _Qualifications of the Auditor 1 ) The firm must have been established in Florida and performed continuous CPA services for a minimum of five years . 2 ) The firm must be a member in good standing with the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants , 3 ) The firm should clearly indicate its expertise . Resumes should be provided for the partner and manager who would be in charge of the audit . 4) The individuals who will be primarily responsible for the audit must have 24 hours of governmental accounting and auditing CPE . 5 ) The firm should indicate its approach to peer review and provide a report of the most recent peer review . The firm should indicate whether that peer review included a review of local government client activities . 6 ) The firm should indicate any disciplinary actions that have been instituted or proposed against the firm during the last three years . 7 ) The firm should describe the results of any state or federal reviews during the past three years of the firm ' s governmental client audit work . Page 8 8 ) Ability to adequately store all working papers and reports at the auditor ' s expense for a minimum of five years , unless the firm is notified by the County to extend the retention period . The auditor will be required to make working papers available , upon request, to the following parties or their designees : the County , U . S . Department of Housing and Urban Development, U . S . Government Accountability Office , USDA-Rural Development, parties to an audit quality review process , and auditors of entities of which the County is a recipient of grant funds . In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers . VI . Information to be Included in the Proposal 1 ) Title page showing the RFP subject, the name of the firm, address , telephone number, the name of the contact person, and the date . 2 ) A table of contents providing a clear identification of the material by section and by page number . 3 ) A statement setting forth the proposer' s understanding of the work to be done and a positive commitment to perform the work within the specified time period . 4) A statement as to whether the firm is local , regional , or national . 5 ) The location of the office from which the work is to be done and the number of personnel in that office who would be working on the audit . 6) An identification of the partners , managers and supervisors who will work on the audit, including staff from other than the local office if necessary for this audit . Resumes for each managerial and supervisory person to be assigned to the audit should be submitted and include the following information : a . Formal education and licensed to practice in Florida b . Supplemental education relative to governmental accounting and auditing C . Experience in public accounting in general d . Experience in private business or government e . Experience in auditing governmental units f. Membership in various national and state governmental accounting boards , committees , or associations (past and present) g . Professional recognition , such as Certified Public Accounting licenses , awards , etc . 7) A description of your office ' s experience in preparing governmental financial statements and in providing assistance in obtaining the Certificate of Achievement. Page 9 8 ) A listing of Florida counties and municipalities for which your firm is providing or has provided audit services . 9 ) The proposal should set forth a work plan , including an explanation of the audit methodology to be followed , to perform the services required in Section III of this request for proposal . Proposers will be required to provide the following information on their audit approach : a . Proposed segmentation of the engagement b . Level of staff and number of hours to be assigned to each proposed segment of the engagement C , Sample size and the extent to which statistical sampling is to be used in the engagement d . Extent of use of EDP software in the engagement e . Type and extent of analytical procedures to be used in the engagement f. Approach to be taken to gain and document an understanding of the internal control structure g . Approach to be taken in determining laws and regulations that will be subject to audit test work h . Approach to be taken in drawing audit samples for purposes of tests of compliance 10) Supplemental information demonstrating financial stability , such as audited financial statements or tax returns , for the previous three years . 11 ) Compensation, outlining number of hours and hourly rate per professional staff position . Fees shall be listed for each fiscal year . 12 ) Proposals must include completed Sworn Statement on Disclosure of Relationships appearing at the end of this document . 13 ) Include a copy of your certificate of insurance with your proposal . VII . Comprehensive Annual Financial Report 1 ) Calendar August 18 , 2010 - Contract signed with proposer September 2010 - Interim audit procedures September 30 , 2010 - Fiscal year end for Indian River County and IRCHA Page 10 October 29 , 2010 - Operating account reports due from the Clerk of the Circuit Court , the Property Appraiser, the Sheriff, the Supervisor of Elections and the Tax Collector November 15 , 2010 - Close books of Board of County Commissioners December 28 , 2010 - IRCHA audit to be completed , unless DCA approves extension to file audit reports January 14 , 2011 - Completion of field work related to the Constitutional Officers February 15 , 2011 - Preliminary management comments and recommendations delivered to Board and Constitutional Officers February 22 , 2011 - Written management comments delivered to Board and Constitutional Officers February 28 , 2011 - Draft of CAFR prepared by Finance Department March 7 , 2011 - Completion of audit and all required audit letters provided for inclusion in the CAFR March 14 , 2011 - CAFR submitted to printer by Finance Dept . March 14 , 2011 - Special reports listed in Section I11 (6) and (7) 2) Support a. Staff will perform the year- end closing of the books . b . Staff will prepare all the financial statements , the introductory section and the statistical section . C , Staff will prepare work schedules and related materials as requested by the selected firm . d . Staff will provide paid invoices , copies of canceled checks and other supportive documentation as requested by the firm . VIII . Evaluation Procedures 1 ) The Committee will review all responses and score individually using the criteria listed below . Firms meeting the mandatory criteria will have their proposals evaluated and scored . Page 11 2) The responses will be evaluated using two sets of criteria . Firms meeting the mandatory criteria will have their proposals evaluated and scored on technical qualifications as well as fees . The following represent the principal criteria that will be considered during the evaluation process . Mandatory Elements a. The audit firm is independent and licensed to practice in Florida. b . The firm has no conflict of interest with regard to any other work performed by the firm for Indian River County and IRCHA . C , The firm adheres to the instructions in this request for proposal on preparing and submitting the proposal . d . The firm submits a copy of its last external quality control review report and the firm has a record of quality audit work . Technical Quality Point Range a. General Government audit experience 0 - 20 b . Qualifications of individuals assigned to audit 0 - 20 C , Familiarity with Certificate of Achievement in Financial Reporting Program 0 - 5 d . Size and organization structure of firm 0 - 15 e . Demonstrated understanding of Indian River County ' s requirements 0 - 10 f. Audit approach 0 - 25 Compensation a . Audit fees total (over 5 year period) 0 - 5 Total Points 100 IX. Public Entity Crimes Pursuant to Florida Statutes Section 287 . 133 (2 ) (a) , all Bidders are hereby notified that a person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid , proposal , or reply on a contract to provide any goods or services to a public entity (defined as the State of Florida, any of its departments or agencies , or any political subdivision) ; may not submit a bid, proposal , or reply on a contract with a public entity for the construction or repair of a public building or public work ; may not submit bids , proposals , or replies on leases of real property to a public entity ; may not be awarded or perform work as a contractor, supplier , subcontractor, or consultant under a contract with any public entity ; and may not transact business with any public entity in excess of the threshold amount provided in Florida Statutes Section 287 . 017 for CATEGORY TWO [currently $ 25 , 000] for a period of 36 months from the date of being placed on the convicted vendor list . A " public entity crime " means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or with the United States , including , but not limited to , any bid , proposal , reply , or contract for goods or services , any lease for real property , or any contract for the construction or repair of a public building or public work, involving Page 12 antitrust, fraud , theft , bribery, collusion , racketeering , conspiracy , or material misrepresentation . X. Insurance Requirements (Include a copy of your certificate of insurance with your proposal) . The Firm and Subcontractors Insurance : The firm shall not commence work until it has obtained all the insurance required under this section, and until such insurance has been approved by the County , nor shall the firm allow any subcontractor to commence work until the subcontractor has obtained the insurance required for a firm herein and such insurance has been approved unless the subcontractor ' s work is covered by the protection afforded by the firm ' s insurance . Worker ' s Compensation Insurance : The firm shall procure and maintain worker ' s compensation insurance to the extent required by law for all his employees to be engaged in work under this contract . In case any employees are to be engaged in hazardous work under this contract and are not protected under the worker ' s compensation statute , the firm shall provide adequate coverage for the protection of such employees . Public Liability Insurance : The firm shall procure and shall maintain broad form commercial general liability insurance (including contractual coverage) and commercial automobile liability insurance in amounts not less than shown below . The County shall be an additional named insured on this insurance with respect to all claims arising out of the operations or work to be performed . Commercial General : $ 1 , 000 , 000 . 00 combined liability single limit for (other than automobile) bodily injury and property damage . Premises / Operations Independent Contractors Products / Completed Operations Personal Injury Contractual Liability Explosion, Collapses , and Underground Property Damage Commercial Automobile : $ 1 , 000 , 000 . 00 combined and damage liability single limit for bodily injury and property damage . Owned / Leased Automobiles Non- Owned Automobiles Hired Automobiles Proof of Carriage of Insurance : The firm shall furnish the County a Certificate of Insurance in a form acceptable to the County for the insurance required . Such certificate or an endorsement provided by the firm must state that the County will be given thirty ( 30 ) days written notice prior to cancellation or material change in coverage . Copies of an endorsement-naming the County as Additional Name Insured must accompany the Certificate of Insurance . Page 13 XI . Sworn Statement : To be returned with proposal . SWORN STATEMENT UNDER SECTION 105 . 089 INDIAN RIVER COUNTY CODE , ON DISCLOSURE OF RELATIONSHIPS THIS FORM MUST BE SIGNED IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER OFFICER AUTHORIZED TO ADMINISTER OATHS . 1 . This sworn statement MUST be submitted with Bid , Proposal . RFP # 2010047 for INDEPENDENT AUDITING SERVICES 2 . This sworn statement is submitted by : (Name of entity submitting Statement) whose business address is : 3 . My name is (Please print name of individual signing) and my relationship to the entity named above is 4 . 1 understand that an "affiliate" as defined in Section 105 . 08 , Indian River County Code , means : The term " affiliate" includes those officers, directors, executives , partners , shareholders , employees , members , and agents who are active in the management of the entity . 5 . I understand that the relationship with a County Commissioner or County employee that must be disclosed as follows : Father, mother, son , daughter, brother, sister, uncle, aunt, first cousin , nephew , niece , husband , wife, father- in - law, mother- in- law, daughter- in - law, son- in - law, brother- in - law, sister- in - law, stepfather, stepmother, stepson , stepdaughter, stepbrother, stepsister, half brother, half sister, grandparent, or grandchild . 6 . Based on information and belief, the statement, which I have marked below , is true in relation to the entity submitting this sworn statement . [Please indicate which statement applies . ] Neither the entity submitting this sworn statement, nor any officers , directors , executives, partners , shareholders , employees , members , or agents who are active in management of the entity , have any relationships as defined in section 105 . 08 , Indian River County Code , with any County Commissioner or County employee . Page 14 The entity submitting this sworn statement, or one or more of the officers , directors , executives, partners, shareholders , employees , members , or agents , who are active in management of the entity have the following relationships with a County Commissioner or County employee : Name of Affiliate Name of County Commissioner Relationship or entity or employee (Signature) (Date) STATE OF COUNTY OF The foregoing instrument was acknowledged before me this day of , 20 , by who is personally known to me or who has produced as identification . NOTARY PUBLIC SIGN : PRINT : Notary Public , State at large My Commission Expires : (Seal) UESTIONS OR IN UIRES REGARDING THE MEANING OR INTERPRETATION OF ANY OF THE PROVISIONS OF THIS RFP MUST BE DIRECTED TO DIANE BERNARD ® FINANCE DIRECTOR. CONTACT WITH PERSONNEL OF IRIDIAN RIVER COUNTY OTHER THAN DIANE BERNARDO FOR PURPOSES OF IN UIRIES REGARDING MEANING OR INTERPRETATION SHALL BE GROUNDS FOR ELIMINATION . THE COUNTY SHALL NOT BE RESPONSIBLE FOR ANY REPRESENTATIONS MADE BY ANYONE OTHER THAN DIANE BERNARDO . Page 15