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HomeMy WebLinkAbout2019-044A1April 1, 2019 Wesley Davis Property Appraiser Indian River County, Florida 1800 27th Street, Bldg B Vero Beach, FL 32960 Jason E. Brown County Administrator Indian River County, Florida 1801 27th Street, Bldg A Vero Beach, FL 32960 Dear Sirs; lel 1111c -11111.1.V111 This letter will confirm our arrangements to provide consulting services to the Indian River County, Florida Property Appraiser (the "PA") and Indian River County, Florida (collectively, the "Parties"), to assist the Parties in performing a review of certain books and records of the Indian River County, Florida Property Appraiser. Rehmann will provide the following services: Disbursement transactions from October 1, 2018 through January 7, 2019 • Rehmann will review supporting documentation for all disbursements exceeding S500.00, determine if they were property classified, and summarize by vendor. • Rehmann will verify the top 10 vendors for legitimacy and cross reference all vendor addresses with employee addresses. • Rehmann will compare actual expenditures with budgeted expenditures for the period and obtain explanations for significant variances. Payroll records from October 1, 2018 through January 7, 2019 • Rehmann will identify the most current base salary per employee, recalculate gross wages for the period, and compare the result to payroll registers for that period, identifying any variances. Cash account activity from October 1, 2018 through January 31, 2019 • Rehmann will scan bank statements for significant or unusual items and test the clerical accuracy of the reconciliations. We will test outstanding items and trace into subsequent bank statements. Personal expenditures Retunann Is an independent montX et of Nem Intern/mortal CPAs & Consultants Wealth Advisors Corporate Investigators Nexia • Rehmann will identify all employee reimbursements and allowances paid between October 1, 2018 and January 7, 2019, summarize the activity by employee, and determine if the written policy was followed with respect to payment. IT System • Rehmann will review and document the IT procedures for protecting the integrity of financial and non-financial data, i.e. system back-up and restore processes, system access controls. tracking of manual changes to the tax roll or QuickBooks data. Data Analytics • Rehmann will perform a Benford's Law Analysis on the general ledger detail to identify anomalies in the data and obtain explanations as needed. Upon completion of the engagement, we will discuss our preliminary comments and observations with the Parties. We wilt then prepare a written report, if required, formalizing our findings, comments, recommendations, and other items deemed worthy of the Parties' attention. Since our procedures do not constitute an audit of the PA's internal controls or financial statements, we will not express an opinion on the PA's internal controls, financial statements or any elements, accounts or items thereof, solely as a result of these procedures. Also, we will not express an opinion on the effectiveness of the PA's internal control over financial reporting or any part thereof solely as a result of these procedures. We will perform services for the Parties based on present professional standards, laws and regulations. Management is responsible for identifying and ensuring that the PA complies with applicable laws and regulations. Our fees for these consulting services will be charged at rates that are commensurate with the value of our professional services rendered and are not expected to exceed $8,500. The not to exceed rate is dependent on the books and records being in good order and provided timely based on the schedule agreed to by the Parties. Our invoices for said fees will be rendered as work progresses and are payable on presentation. Our fees are based on anticipated cooperation from the Parties, continued readiness and proactive assistance on their part in providing us with complete and accurate information (whether financial or nonfinancial in nature) considered necessary by us, and the assumption that unexpected circumstances will not be encountered during the review. If significant additional time is necessary, we will discuss the related circumstances with management and arrive at a new fee estimate, which will occur before we incur the additional time. In these circumstances, we may also issue a change order form (an attached example is provided). Our engagement ends on delivery of our comments or report. Any follow-up services that might be required will be a separate, new engagement. The terms and conditions of that new engagement will be governed by a new, specific engagement letter for that service. This engagement letter and the attached Rehmann Engagement Letter Terms reflect the entire understanding between us relating to the audit services covered by this agreement. This agreement may not be amended or varied except by a written document signed by both parties. It replaces and supersedes any previous proposals, correspondence, and understandings, whether written or oral. The agreements of the Parties and Rehmann contained in this document shalt survive the completion or termination of this engagement. If any term hereof is found unenforceable or invalid, this shall not affect the other terms hereof, all of which shall continue in effect as if the stricken term had not been included. We appreciate the opportunity to be of service to the Parties and believe the arrangements outlined above and in the attached Rehmann Engagement Letter Terms accurately summarize the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement, please sign the enclosed copy of this document and return it to us. P. Ross Cotherman, CPA Principal Executive responsible for supervising the engagement and signing our report AKNOWLEDGED AND ACCEPTED: This tetter correctly sets forth the understanding of the Parties: For: Indian River County, Florida Property Appraiser Wes ey Davis. Property Appraise_ For: Indian Riv bounty. Flori 47- Date Date Jason E. Brow , County A:^' istrator Date ACCURACY AND COMPLETENESS OF INFORMATION - Management agrees to ensure that all information provided to us is accurate and complete in all material respects, contains no material omissions and is updated on a prompt and continuous basis. Rehmann shall be entitled to rely on all information provided by and decisions and approvals of the Company in connection with our work. Rehmann will not be responsible if any information provided by the Company is not complete, accurate or current. TERMINATION OF SERVICES - We reserve the right to suspend or terminate services for reasonable cause such as failure to pay our invoices on a timely basis or failure to provide adequate information in response to our inquiries necessary for successful performance of our compilation services. Our engagement will be deemed to be completed upon written notification of termination, even if we have not completed the all aspects of the engagement. The Company is obligated to compensate us for the time expended to that point and to reimburse us for all out-of-pocket expenditures through the date of termination. EMAIL - The Company acknowledges that (a) Rehmann, the Company and others, if any, participating in this engagement may correspond or convey documentation via Internet e-mail unless the Company expressly requests otherwise, (b) no party has control over the performance, reliability, availability, or security of Internet e-mail, and (c) Rehmann shall not be liable for any loss, damage, expense, harm or inconvenience resulting from the loss, delay, interception, corruption, or alteration of any Internet e-mail due to any reason beyond Rehmann's reasonable control. INDEPENDENT CONTRACTOR - Rehmann's relationship with Client will be that of an independent contractor and not that of an employee. (i) Rehmann shall be solely responsible for determining the method, details and means of performing the Services; and (ii) neither Rehmann, nor any partner, agent or employee of Rehmann, has authority to enter into contracts that bind Client or create obligations on the part of Client without the prior written authorization of Client. OFFERS OF EMPLOYMENT - Neither party shall, during the term of this engagement letter and for one (1) year after its termination, either directly or indirectly, separately or in association with others, interfere with, impair, disrupt or damage Rehmann's business by soliciting, encouraging or recruiting any of the employees or contract workers of Rehmann with whom Company had contact, or about whom Company acquired Proprietary Information, during employee or contractor's performance hereunder, for the purpose of persuading them to discontinue their employment or engagement with Rehmann. Company agrees that any breach of this Article would damage Rehmann in an amount difficult to ascertain with certainty, and that in the event that Consultant breaches this provision resulting in Rehmann's losing the services of an employee or independent contractor for any period of time, Company shall pay to Rehmann an amount equal to one hundred and fifty percent (150%) of the compensation paid by Rehmann for the immediately prior calendar year of the applicable employee or independent contractor. ADDITIONAL SERVICES - Management may request that we perform additional services not addressed in this engagement letter. If this occurs, we will communicate with management 1 continue to be governed by the terms of this engagement letter. CHANGES IN STANDARDS, LAWS AND REGULATIONS - We perform services for the Company based on present professional standards, laws and regulations. While we may on occasion be able to communicate with management with respect to changes in professional standards, laws and regulations, as a general principle we cannot undertake with clients to advise them of every change that may occur. The Company can always obtain reassurance in this regard by contacting us for an updated review of the Company's situation. BILLING POLICIES - In accordance with our Firm policies, work may be suspended if the Company's account becomes 30 days or more overdue and will not be resumed until the account is paid in full or we have a definitive payment agreement approved by our Firm administrator in Saginaw, Michigan. If we elect to terminate our services for nonpayment, our engagement will be deemed to have been completed even if we have not completed our work. The Company will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket expenditures through the date of termination. Our terms and conditions impose a late charge of 1.5% per month, which is an annual percentage rate of 18%. Balances not paid within 30 days of the receipt of invoice are past due and a late charge of 1.5% will be applied to the entire past due amount. CLAIMS - Because there are inherent difficulties in recalling or preserving information as the period after an engagement increases, the Company agrees that, notwithstanding the statute of limitations of any particular State or U.S. Territory, any claims based on our services or workmanship must be filed within 12 months after performance of our service, unless management has previously provided us with a written notice of a specific defect in our services that forms the basis of the claim. The Company shall indemnify and hold harmless Rehmann and its personnel from and against any payment, loss, cost or expense (including reasonable attorneys' fees) paid or incurred by Rehmann at any time and in any way (a) relating to claims by any Company employees or former employees and (b) attributable to misrepresentations of the Company. The foregoing indemnity is intended to apply to the extent not contrary to applicable law. This paragraph shall survive the termination of this agreement for any reason. THIRD PARTY PROCEEDINGS • As a result of our prior or future services to the Company, we might be requested to provide information or documents to management or a third party in a legal, administrative, or arbitration or similar proceeding in which we are not a party. If this occurs, our efforts in complying with such requests will be deemed billable to the Company as a separate engagement. We shall be entitled to compensation for our time and reasonable reimbursement for our expenses (including legal fees) in complying with this request. For all requests, we will observe the confidentiality requirements of our profession and will notify management promptly of the request. PROMOTIONAL MATERIALS - The Company consents to Rehmann's use of your Company name and a factual description of the services to be performed by Rehmann under this 'protect all Confidential Information and to use the Confidential Information only in connection with performing the services hereunder, For purposes of this agreement, confidential information shall mean any and all information which is private and not in the public domain about the Company that is provided, obtained, or produced in connection with the services in written, oral, digital or other tangible form. All forms, checklists, questionnaires, letters, and other documents that we make available to you are confidential and proprietary to us. Neither you, nor any of your agents, will copy, electronically store, reproduce, or make available to anyone other than your personnel, any such documents. This agreement wilt apply to all materials whether in digital or "hard copy" format. MEDIATION - If any dispute arises among the parties hereto, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Rules for Professional Accounting and Related Services Disputes before resorting to litigation. Costs of any mediation proceeding shall be shared equally by all parties. GOVERNING LAW - This Agreement shall be governed by and construed in accordance with the laws of the State of Michigan, without regard to the principles of conflicts of law thereof. ASSIGNMENT - All obligations provided under this Agreement are between Rehmann and the Company and neither party shall assign any rights or delegate any obligations hereunder without the other party's prior written consent. Any attempted assignment without the required consent shall be null and void. 2 EXAMPLE CHANGE ORDER Client: Indian River County, Florida Property Appraiser and Indian River County, Florida (collectively, the "Parties") Date: Project Description (and estimated completion date. if appropriate): Estimated Additional Fees: $ We believe it is our responsibility to exceed the Parties' expectations. This Change Order is being prepared because performance by us of the above project and/or additional service efforts was not anticipated in our original Agreement dated April 1, 2019. The estimated fees for the above project have been mutually agreed upon by the Parties and Rehmann. It is our goal to ensure that the Parties is never surprised by the price for any Rehmann service and, therefore, we have adopted the Change Order Policy. The estimated additional amount above is due and payable upon completion of the project described. If management agrees with the above project description and the estimated fee amount, please authorize and date the Change Order below. A copy is enclosed for the Parties' records. Thank you for letting us serve the Parties. Agreed to and accepted: Name Date Name Date Indian River County Florida Master File Number: 19-0152 Indian River County Administration Complex 1801 27th Street, Building A Vero Beach, Florida, 32960-3388 www.ircgov.com File ID: 19-0152 Version: 1 Subject: Type: Constitutional Officers & Status: Agenda Ready Other Govt. Project Number: In Control: Constitutional Officers and Governmental Agencies File Created: 02/08/2019 Final Action: 03/12/2019 Title: Indian River County Property Appraiser Wesley Davis: Status Report and Funding Request for Audit Internal Notes: Sponsors: Enactment Date: Attachments: Memorandum Wesley Davis, Property Appraiser, Draft Enactment Number: Engagement letter - Property Appraiser Bid Number: Hearing Date: Entered by: mpursel@ircpa.com History of Legislative File Effective Date: Ver- Acting Body: Date: Action: sion: Sent To: Due Date: Return Result: Date: 1 Board of County Commissioners Action Text: 03/12/2019 Approved A motion was made by Commissioner O'Bryan, seconded by Commissioner Flescher, to approve the request of the Indian River County Property Appraiser's Office for additional funding to engage the firm of Rehmann for consulting services for a Stub Audit for the period of October 1, 2018 through January 7, 2019. The motion carried by the following vote: Aye: 5 Chairman Solari Vice Chairman Adams Commissioner Flescher Commissioner O'Bryan Commissioner Zorc Pass Indian River County Florida Page 1 Printed on 4/2/2019