HomeMy WebLinkAbout2000-309AGREEMENTFOR
By this Agreement entered into this 10th day of October, 2000, between Indian River County,
Florida hereinafter referred to as "County", and Harris Cotherman & Assoc., Certified Public
Accountants, a Corporation authorized to do business in the State of Florida, hereinafter referred
to as "auditor", the parties agree hereto as follows:
FYnsi im"f�.YNII]xl}y_\Ill�iR.99Zrir/T3V
The scope of audit services provided will be in accordance with the provisions of See. 11.45
Florida Statues and with the requirements of the County's Request for Proposal, except for
Section M. 3), 5), 10), & 12), as outlined in Section 8, both of which, by references, are
specifically incorporated into and made a part of this agreement.
SECTION2. AUDIT PROCEDURES
The audits of the County's general purpose financial statements and the combining, individual
fund, account group and supporting financial statements as of and for the years ended September
30, 2000, 2001, 2002, 2003, and 2004, will be made in accordance with generally accepted
auditing standards and the standards for financial audits contained in Govemmem Audii na
Standards, issued by the Comptroller General of the United States, the Single Audit Act of 1964.
and the provisions of OMB Circular A-133, Audits of State and Local Governments. The
objective of an audit is the expression of an opinion concerning whether the financial statements
present fairly, in all materials respects, the financial position ofthe County and the results of its
operations and cash flows of its Proprietary Funds in conformity with generally accepted
accounting principles.
As a part of the audit, the Auditor will consider the County's internal control structure over
financial transactions and assess control risk, as required by generally accepted auditing
standards, for the purpose ofestablishing a basis for determining the nature, liming, and extent of
auditing procedures necessary for expressing their opinion concerning the financial statements
and not to provide assurance on the internal control stricture, The Auditor will also, as
discussed later, consider and test the County's internal policies and procedures used in
administering federal financial assistance programs. The management of the County is
responsible for establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the expected
benefits and related costs for internal control structure policies and procedures. The objectives
of an internal control structure are to provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use or disposition, and that
transactions are executed in accordance with management's authorization and recorded properly
to permit the preparation of financial statements in accordance with generally accepted
accounting principles. Because ofthe inherent limitations in any internal control structure, errors
or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that procedures may become inadequate
because of changes in conditions or that the effectiveness of the design and operation of policies
and procedures may deteriorate.
As required by government auditing standards, the Auditor will prepare a separate written report
on their understanding of the County's internal control structure and the assessment of control
risk made as part of the financial statement audit. The report will include: (1) the scope of their
work in obtaining an understanding of the internal control structure and in assessing the control
risk, (2) the County's significant internal controls or control structure including the controls
established to ensure compliance with laws and regulations that have a material impact on the
general-purpose financial statements, and (3) the reportable conditions, including the
identification of material weaknesses, identified as a result of their work in understanding and
assessing control risk.
The audit will include procedures designed to provide reasonable assurance of detecting errors
and irregularities that are material to the general-purpose financial statements. As the County is
aware, however there are inherent limitations in the auditing process. For example, audits are
based on the concept ofselective testing of the data being examined and are, therefore, subject to
the limitation that such matters, if they exist, may not be detected. Also, because of the
characteristics ofirregulanties, including attempts at concealment through collusion and forgery,
a properly designed and executed audit may not detect a material irregularity.
Similarly, in performing the audit, the Auditor will be aware of the possibility that illegal acts
may have occurred. However, it should be recognized that the audit provides no assurance then
illegal acts generally will be detected, and only reasonable assurance that illegal acts having a
direct and material effect on the determination of general purpose financial statements amounts
may be detected. The Auditor will infomh the County with respect to illegal acts or material
errors that come to their attention during the course of the audit.
Compliance with laws, regulations, contracts, and grants applicable to the County is the
responsibility of the County's management. As part of obtaining reasonable assurance about
whether the financial statements are free of material misstatement, the Auditor will perforin test
of the County's compliance with certain provisions of law, regulations, contracts, and grants.
However, except for major federal financial assistance programs, the objective is not to provide
an opinion on overall compliance with such provisions.
As required by government auditing standards, the Auditor will prepare a separate written report
on their test of compliance with applicable laws and regulations. This report will contain a
statement of positive assurance on those items which were tested for compliance, negative
assurance on those items not tested, and a description of all material instances of noncompliance.
As required by OMB Circular A-133, the Auditor will consider and test the County's internal
control stmeture policies and procedures used in administering federal financial assistance
programs. Based on this consideration and these tests, the Auditor will assess risk and determine
the nature, timing, and extent of testing compliance with requirements that, if not complied with,
could have material effect on a major federal financial assistance program. Also, in connection
with the audit of the financial statements or consideration of the internal control structure over
federal assistance programs, ifthe Auditor selects a transaction for testing that is applicable to a
nonmajor program, they will also test it generally for compliance with laws and regulations.
In accordance with OMB Circular 133, the Auditor will prepare the following separate written
reports:
• Schedule of Expenditures of Federal Awards
• Schedule of Findings and Questioned Costs—Federal Awards
• Compliance and Internal Control over Financial Reporting Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards
• Compliance with Requirements Applicable to Each Major Program. Internal Control
over Compliance in Accordance with OMB Circular A-133, and Schedule of
Expenditures of Federal Awards
At the conclusions of the engagements, the County's management will provide to the Auditor a
representation letter that, among other things, will confirm management's responsibility far the
preparation of the financial statements in conformity with generally accepted accounting
principles, the availability of financial records and related data, the completeness and availability
of all minutes of County meetings, and absence of irregularities involving management or those
employees who have significant roles in the control structure.
SECTION3, ASSISTANCE TO BE FURNISHED BY COUNTY
The County will provide the Auditor with reasonable workspace. It is understood that County
staff participation in the audit will be limited to activities within the normal course of business,
The County staff will furnish the Auditor with copies of documents routinely produced,
including but not limited to:
Accounts payable detail ledgers
Accounts receivable detail ledgers
Contracts
Official Statements, Bond Resolutions, etc.
Payable ledgers
Payroll detail
Property and equipment listings
Schedule of Federal and State Financial Assistance
Trial balances
As stated in VII, Request for Proposal for Auditing Services, the County will furnish other detail
schedules routinely prepared by its personnel and
Staff will perform the year-end closing of the books.
Staff will prepare all the financial statements, the introductory section and the
statistical section.
Staffwill prepare work schedules and related materials as requested by the
selected firm.
Staffwill provide paid invoices, canceled checks and whersupportivc
documentation as requested by the firm.
SECTION 4. TERM OF THE ENGAGEMENT
This Agreement provides for services far the fiscal years ending September 30, 2000, 2001,
2002, 2003, and 2004.
Either the County or the Auditor may cancel this Agreement for the fiscal years subsequent to
the first year of this Agreement by written notice to the other party given not later than six (6)
calendar months prior to the end of the fiscal year next subject to audit. The County agrees that
such cancellation on its part shall be only for cause and after appropriate discussion with the
Auditor. r,
SECTION 5. COMPENSATION FOR AUDIT SERVICES �t
j n,A
Compensation for the five (5) annual audits shall be in accordance �th that produced by
negotiations approved by the County Commission on October 10, 2000, and shall be apportioned
"follows:
FIRST YEAR (September 30, 2000)
Payment
$123,000
SECOND YEAR (September 30,2001)
$123,000
THIRD YEAR (September 30, 2002)
$123,000
FOURTH YEAR (September 30,2003)
$123,000
FIFTH YEAR (September 30, 2004)
$123.000
Mo -000
of these fees each year shall be as follows:
SEPTEMBER/OCTOBER
$28,000
NOVEMBER
$28,000
DECEMBER
$28,000
JANUARY
$26,000
FEBRUARY
$ 7,000
MARCH
$ 6,000
SECTION 6, ADDITIONAL SERVICES
The Coutay may request additional audit -related services because of additional regulatory
requirements, the creation of additional entities that become part of the County, financing
activities, or by circumstances unforeseen at the time of execution of this Agreement. The
Auditor shall be compensated for additional services at a fee of 85%ofthcir then standard rates.
The County may also request other additional services within the Scope of this Agreement
including, but not limited to, general utility management consulting, EDP -related consulting,
actuarial and employee benefits consulting, construction cost containment, and arbitrage rebate
calculations. The cost ofsuch services shall be negotiated at the time the services are requested.
SECTION 7 OTHER MATTER
If the Auditor encounters irregularities, insufficient records, lack of reasonable cooperation from
County staff or any other unforeseen condition which would require additional work to complete
the audits, the Auditor shall immediately advise the County of the circumstances in detail, and if
they cannot be remedied, the additional costs involved. Such additional costs shall be based on
85%of standard rates in effect at the time and shall be set by mutual agreement of the panics.
The Auditor may consult with Federal and State regulatory authorities on matters pertinent to
this engagement and may request confirmation of bank balances and investments, contracts,
payables and receivables as required by the audit, and the County agrees to authorize such
inquiries as are reasonable and proper to the engagement.
The Auditor shall execute and deliver to the County a Truth in Negotiation Certificate in form
and content as prescribed in Sec. 11.45(3) (a)3j, Florida Statues (Attachment A), a sworn
statement pursuant to Sec. 287.133(3)(n), Florida Statues, on Public Entity Crimes (Attachment
B), and a sworn statement under Section 105.08, Indian River County Code, on Disclosure of
Relationships (Attachment C ).
SECTION 8 EX!:EPTIONSTQCOUNTy,S REQUEST FOR PROPOSAL
The Clerk's Office has agreed to prepare a camera-ready copy of the CAFR including all
financial statements and footnotes for the Board of County Commissioners and Constitutional
Officers. The camera-ready copy of the CAFR will be reviewed by the auditors prior to its
issuance. The auditors will deliver a camera-ready copy of their audit reports once a final
approved copy of the CAFR is ready.
When the County implements GASB 34, no earlier than fiscal year end September 30, 2001, they
will be responsible for but not limited to the following items: I) policy and procedure changes
and the associated internal control changes, 2) preparation of the camera ready CAFR for the
Board of County Commissioners and Constitutional Officers including the MD&A letters for the
BOCC and Constitutional Officers, 3) determination of an infrastructure valuation and
depreciation method, 4) a review of the fund types and identification of Major funds, including
determining proper authorization, and 5) preparing and posting proper restatement entries for the
BOCC and Constitutional Officers. The auditors will be responsible for the audit in accordance
with the Rules of the Audit General, Chapter 10.550, the Single Audit Act, OMB Circular A-
133, the GAO Yellow Book. Government Auditing Standards and the AICPA Auditing
Standards.
If the County does issue debt during the term of this contract, for which the official statement in
connection with the debt contains general purpose financial statements and the report of
independent accountants, the auditor shall provide a "consent and citation of expertise" at no
additional cost to the County. If the County shall request a "comfort letter" over the term of this
contract, the auditor will be entitled to $3,000 for each "comfort letter."
Harris Cotherman & Assoc., CPAs, Chartered
By:
Robes Hams, CPA
Managing Director
Witness: r�-
Printed Nuance: P. Ross Cotherman, 11, CPA
mass
Pwed :eCheriL.
Indian River County, Florida
�,QZ6Ao
Fran Adams
Chairman, Board of County Commissioners
BCC Approved: October 10, 2000
Attest:
7e CyY4�B.��B�art�on, Clerk of C* tC9art� �C
ATTACHMENTA
TRUTH M NEGOTIATION CERTIFICATE
Harris, Cothemaan & Associates, CPAs - Chartered (HC&A), by and through the undersigned officer,
certifies that the rate of compensation and other factual unit costs used by HC&A in negotiating this
contract with Indian River County and at arriving at the compensation set forth herein are accurate and
complete and current at the time ofcontracting.
By:
Robert R. Harris, CPA
Managing Director
ATTACHMENT I3
SWORN STATEMENT UNDER SECTION
287.133(3)(n). FLORIDA STATUES ON PUBLIC ENTITY CRIMES
THIS FORM MUST BE SIGNED IN THE PRESENCE OF A NOTARY PUBLIC
OR OTHER OFFICER AUTHORIZED TO ADMINISTER OATHS.
1. This sworn statement is submitted with Bid, Proposal or Contract No.
for Audit Services.
2. This sworn statement is submitted by Hams, Cotherman & Associates, CPAs - Chartered whose
business address is 5070 North Highway AIA, Suite 250, Vero Beach, FL 32963 and (if
applicable) its Federal Identification No. (FEIN) is 65-0689902. If entity has no FEIN, include
Social Security Number of the individual signing the swom statement:
3. My time is Robert R. Hams and my relationship to the entity named above is Managing Director.
4. I understand that a "public entity crime" as defined in Paragraph 287.133 (1)(g), Florida Stamen,
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 or contract for goods or
services to be provided to any public entity or an agency or political subdivision of any other state
or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering,
conspiracy or material misrepresentations.
5. 1 understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), Florida
Statues, means a finding of guilt or a conviction of a public entity crime, with or without an
adjudication of guilt, in any federal or state trial coup of record relating to shares brought by
indictment or information after July 1, 1989, as a result of a jury verdict, non -jury trial, or entry of
a plea of guilty or nolo contenders.
6. 1 understand that an "affiliate" as defined in Paragraph 287.133(I)(a), Florida Statues, means:
a. A predecessor or successor of a person convicted of a public entity crime; or
b. An entity under the control of any natural person who is active in the management of the
entity and who has been convicted of a public entity crime. The term "affiliate" includes
those officers, directors, executives, partners, shareholders, employees, members and agents
who are active in the management of an affiliate. The ownership by one person of shams
constituting a controlling interest in another person, or a pooling of equipment or income
among persons when not for fair market value under an arm's length agreement, shall be a
prima facie case that one person controls another person. A person who knowingly enters
into a joint venture with a person who has been convicted of a public entity crime in Florida
during the preceding 36 months shall be considered an affiliate.
7. 1 understand that a "person' as defined in Paragraph 287.133(1)( c ), Florida Statues, means any
natural person or entity organized tinder the laws of any state of the United States with the legal
power to enter into a binding contract and which bids or applies to bid on contracts for the
provision of goods or services let by a public entity, or which otherwise transacts or applies to
transact business with public entity. The term "person' includes those officers, directors,.
SWORN STATEMENT UNDER SECTION 10508
INDIAN RIVER COUNT 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 swom statement is submitted with Bid, Proposal or Contract No.
for Audit Services.
2. This swam statement is submitted by: Harris, Cotherman & Associates, CPA's Chartered.
Whose business address is:
5070 North Highway AIA, Suite 250, Vero Beach, FL 32963
and (if applicable) its Federal Identification Number (FEIN) is:
65-0689902
(If the entity has no FEIN, include the Social Security Number of the individual signing this swom
statement ,)
3. My name is Robert R. Harris and my relationship to the entity named above is Managing Director.
4. 1 understand that an "affiliate" as defined in Section 105.08, Indian River County Code, means:
The term "affiliate' includes those officers, directors, caremives, partners, shareholders,
employees, members, and agents who are active in the management of the entity.
5. 1 understand that the relationship with a County Commissioner or County employee 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 Ime in relation to the
entity submitting this sworn statement. (Please indicate which statement applies.)
X Neither the entity submitting this swom 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.
executives. partners, shareholders, employees, members and agents who are active in management
ofan entity.
8. 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)
-XL 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,
not any affiliate of the entity have been charged with and convicted of a public entity crime
subsequent to July 1, 1989.
The entity submitting this mom statement, or one or more of the officers, directors,
executives, partners, shareholders, employees, members or agents who are active in management
of the entity, or an affiliate of the entity has been charged with, and convicted of, a public entity
crime subsequent to July 1, 1989, and (Please indicate which additional statement applies)
_ There has been a proceeding concerning the conviction before a hearing officer of the State
of Florida, Division of Adminis ative Hearings. The final order entered by the hearing officer did
not place the person or affiliate on the convicted vendor list. (Please attach a copy of the final
order)
The person or affiliate was placed on the convicted vendor list. There has been a
subsequent proceeding before a hearing officer ofthe State of Florida, Division of Administrative
Hearings. The final order entered by the hearing officer determined that it was in the public
interest to remove the person or affiliate forth the convicted vendor list. (Please attach a copy of
the final order)
The person or affiliate has not been placed on the convicted vendor list. (Please describe
any action taken by, �or pending
with,, theDepartmentof General Services)
Signature �—
Date: 141 t,a
State of Florida
County of Indian River
Personally appeared before me, the undersigned authority, Robert R. Hanis who a
being swom my me, affixed his/her signature in the space Provided above on this �i ilter fm
er day
of U(NI'9Cr ,2000.
swn o.wsriw
ur rawuspar.."
tary
NoPublic, State at Large HnRS;
MY Commission Expires: 9-pl'OWI d.'h °°'°""'""Yfl01
_The entity submitting this swom 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 ofAftiliato or Name of County Commissioner
Badly or employee Relationship
Signature
StateofFlorlda
County oflndian River
The foregoing instrument was acknowledged before me this _day of
2000, by Robert R. Harris, who is personally know to me or who has produced
as identification. _
Mi
Print:
State of Florida at Large
My Commissioner Expires:
(Seal)
INDIAN RIVER COUNTY,
FLORIDA
REQUEST FOR PROPOSAL
FOR
AUDITING SERVICES
Fiscal W.m, EnWing Sepiembm 30, 2000, 2001, 2002, 2003, 2004
INDIAN RIVER COUNTY BOARD OF COUNTY COMMISSIONERS
Indian River County is requesting proposals from qualified firms of certified public accountants to
audit its financial statements for the fiscal years ending September 30, 2000, 2001, 2002, 2003 and
2004. These audits are to be performed in accordance with general accepted auditing standards in
addition to the following:
(1) Section 11.45, Florida Statutes
(2) Regulations ofthe State Department of Banking and Finance
(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 ("the
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) Circular No. A-133, Executive Office of the President, Office of Management and
Budget, Washington D,C.
1. General Information
1) The Auditor Selection Committee is composed ofthe Clerk ofthe Circuit Court, the
Property Appraiser, the Sheriff, the Supervisor of Elections, the Tax Collector, and
one member of the Board of County Commissioners.
2) Questions regarding the Request for Proposal (RFP) we to be addressed to:
Edwin M. Fry, Jr.
Finance Director
Clerk ofthe Circuit Court
1840 25th Street
Vero Beach, FL 32960
Phone: (561) 567-8000 Ext.205
Page 1
3) All responses to this RFP most be received as soon as possible, but no later than 2:00
P.M., May 5, 2000 at the address listed above. Ten signed copies of your proposal
shell be submitted in one sealed package, clearly marked on the outside "Proposal for
Independent Auditing Services." Any responses received atter the deadline will be
returned to the proposer unopened. All costs incurred by the responding fines in
preparing proposals in response to this request will not be reimbursed by the County.
4) The Auditor Selection Committee will recommend no less 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 Indian River County Board of County Commissioners or the
Audit Selection Committee, firms submitting proposals may be requested to make
oral presentations 03 part of the evaluation process.
5) Indian River 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 mrd specifically noted in the proposal submitted
slid confirmed in the contract between Indian River County and the it= selected.
b) Firms submitting proposals may subcontract portions of the engagement. If this is
to be done, the time of the proposed subcontracting flims must be clearly
identified in the proposal. Following the award of We audit contract, no additional
subcontracting will be allowed without the express prior written consent of the
Indian River County Board of County Commissioners.
7) The Board of County Commissionerswill rank the proposers and negotiate a contract
with one of the proposers in accordance with Section 11.45 Florida Statutes. It is
anticipated that the Board will enter into alive year contract starting with the October
1, 1999, through September 30, 2000, fiscal year.
g) RFP Calendar
April 10, 2000 - Request for Proposal to be mailed
May 5, 2000 - Responses to RFP due by 2:00 P.M.
May 19, 2000 - Auditor Selection Committee meeting to develop
list offrrms to make oral presentations. Meeting
will be held in 1st floor conference room at 2:00
P.M.
Page 2
n
May 30 & 31, 2000 -
Auditor Selection Committee meeting to listen to
oral presentations and interview firms. Develop
short list of three (3) forms to recommend to Board
ofCounly Commissioners. Meetings will he held in
Ist floor conference room on May 30 at 1:00 P.M.
and May 31 at 9:00 A.M..
June 5 - 9, 2000 -
Three (3) firms to tour Board offices and
Constitutional Officers' offices.
Jane 7, 2000 -
Auditor Selection Committee recommendations
forwarded to County Administrator by 12:00
P.M. for June 13, 2000 Board meeting
June 13, 2000 -
Board of County Commissioners to receive Auditor
Selection Committee recommendations and select
firm to provide audit services
June 20, 2000 -
Board of County Commissioners to award
contract for audit services
9) Audits for the last five fiscal years were completed by Harris, Cotherman &
Associates.
10) The County does not have an internal audit department.
11) All requirements and conditions set forth in this RFP shall be incorporated into the
contract between Indian River County and the selected firm unless otherwise
specified in the contract.
usmmw�m-
1) Indian River County is on the east coast of Florida, approximately 150 miles north
of Miami and 100 miles east-southeast of Orlando. The City of Vero Beach is the
County seal and the population estimate as of April, 2000 for Indian River County
is 109,579.
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, the Tac Collector and three
component units: the Solid Waste Disposal District, the Emergency Services District,
and the Indian River County Housing Authority.
Page 3
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 fwd, 23 special revenue funds, 2 debt service funds, 4 capital projects funds,
4 enterprise funds, 2 internal service fwds, 1 agency fwd, a general fixed assets
account group, and a general long-term debt account group, The FY 2000 total
budget for the Board is approximately 189 million dollars. 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 Cour are maintained by the Clerk's
staff The Clerk's records include a general fwd, 2 special revenue funds, 5 agency
funds, and a general long-term debt account group. The total FY 2000 budget for the
Clerk is approximately 4.34 million dollws.
5) Accounting records for the Property Appraiser are maintained by the Property
Appraiser's staff. The Property Appraises s records include a general fwd, an agency
fwd and a general long-term debt account group. The total budget for the Property
Appraiser is approximately 1.99 million dollars.
6) Accounting records for the Sheriff we maintained by the Sheriffs staff The Sheriffs
records include a general fund, special revenue fwds, agency f rids, one expendable
frust fwd, a general fixed assets account group, and a general long -tern debt account
group. The total budget for the Sherif is approximately 23.8 million dollars.
7) Accounting records for the Supervisor of Elections are maintained by the
Supervisor's staf. The Supervisor's records include a general fund with a budget of
approximately $663,000.
8) Accounting records for the Tax Collector are maintained by the Tax Collector's staff.
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
2.09 million dollars.
9) The Indian River County Housing Authority maintains records for three projects
valued at approximately 9 million dollars. 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.
Page 4
10) All accounting records are maintained on die modified accrual basis or accrual basis
as appropriate.
l l) Budgets we integrated with the accounting records.
12) The County has determined that the U.S. Department of Housing and Urban
Development will function as the eogniaent agency in accordance with provisions of
the Single Audit Act and OMB Circular A-133.
13) Indian River County has received the Government Finance Officers Association's
Certificate of Achievement for Excellence in Financial Reporting for the 1983
through 1998 Comprehensive Annual Financial Reports. The CAM for each ofthe
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.
14) Indian River County is progressive in its attitude toward new accounting standards.
Early implementation is practiced when recommended.
Services Required
I) An audit and an opinion on the basic financial statements, the combining, individual
fund, account group and supporting financial statements oflndian River County. Ile
supporting financial statements are the basic financial statements for the Board and
for each Constitutional Officer. The auditor is not required to audit the statistical
section ofthe report.
2) The audit is to be done in accordance with the Rules ofthe Auditor General, Chapter
10.550, the Single Audit Act , OMB Circular A-133, the GAO Yellow Book,
Government Auditing Standards, mrd the AICPA Auditing Standards.
3) Preparation ofall required note disclosures for the County's Comprehensive Annual
Financial Report.
4) Following the completion ofthe audit ofthe fiscal year's finmtcial 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 ofcontml risk.
Page 5
a 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.
5) Two camera ready copies of the Comprehensive Annual Financial Report for Indian
River County. One copy to exclude the Auditor General Reports as required by
Section VII, 2.
6) A Component Unit Financial Reportfor the Indian River County Housing Authority.
7) Department of Finance and Banking Financial Report review as required by Section
218.32(1) Florida Statutes.
8) Special Reports for the Board of County Commissioners:
a. Criminal Justice Trust Funds Compliance Report as required by Section
27.3455 Florida Statutes.
b. Statement of Conflict Counsel Fees and Statement of Conflict Council
Expenses and Costs Report as required by Section 925.037(5) Florida
Statutes.
c. Schedule of Other Cash end Investments of the Solid Waste Disposal
District as required by mle 17.701, Florida Administrative Code.
9) Special Reports for the Tax Collector:
a. Saltwater Fishing Licenses Report as required by Section 370.0605 Florida
Statutes.
b. Freshwater Fishing Licenses Report as required by Section 372.561
Florida Statutes.
C. Both Licenses Reports are for the State fiscal yew July 1 through June 30
and shall be completed by no later than the second week of July.
10) Assistance in early implementation of GASB Statement No. 34 and General
Infrastructure Assets reporting requirement starting FY 1999-2000.
11) Assistance in providing guidance acrd implementing changes in govemmmital
accounting standards.
page 6
12) 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
that shall be required to issue a "consent and citation ofexpertise" as auditor and any
necessary "comfort letters" at no additional cost to the County.
13) !rrgn �ladtie=a d'll g I t, Auditors shall be required to make an immediate,
written report ofall irregularities and illegal acts.
IV. Additional Professionalge,vice,
If there is a change of Constitutional Officer as result of an election, resignation, removal
from office, death or disablement, it may be necessary to audit the financial records fthe
Constitutional Officer for a period shorter than one year. If it should become necessary to
conduct an audit under these circumstances, a separate engagement between the
Constitutional Officer and the audit firm will be required. The cost of this separate
engagement will be paid by the Constitutional Officer and not considered as Part of the
required services ofthis RFP.
a
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 of the American Institute of Certified Public
Accountants and the Florida Institute of Certified Public Accountants.
3) The firm should clearly indicate its available governmental 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 than should indicate its approach to peer review and provide a report of the most
recent peer review. 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 fors governmental client audit work.
Page 7
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:
Formal education
Supplemental education relative to governmental accounting and
auditing
Experience in public accounting in general
Experience in private business or government
Experience in auditing governmental wits
Membership in various national and state governmental accounting
boards, committees, or associations (past and present)
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.
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 pion, including an explanation of the audit
methodology to be followed, to perform the services required in Section III of this
request for proposal.
Page 8
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) Firm promotional material may be included as supplemental information.
Wl111111110R'di,i9'14MiTi ffMlf MIllitlfF.7i[dF.1�ti:Tf7:1
1) Calendar
June 20, 2000 -
Contract signed with proposer
July 2000 -
Fishing Licenses Reports completed by July 14
August 2000 -
Interim audit procedures
September 30, 2000 -
Fiscal year end for Indian River County
October 30, 2000 -
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 172000 -
Close books ofBoard of County Commissioners
December 29, 2000 -
Preliminary management comments and
recommendations delivered to Board and
Constitutional Officers
January 12,2001 -
Written management comments delivered to Board
and Constitutional Officers
January 23, 2001 -
First draft of CAFR delivered to Finance Director
February 6, 2001 -
Second draft of CAFR delivered to Finance Director
February 13, 2001 -
Camem ready copy of CAFR delivered to Finance
Director
Page 9
2) Contents
Title Page
Introductory Section
Letter of Transmittal
Organimthm Chart
Certificate of Achievement
Financial Section
Report of Independent Accountants
Basic Financial Statements
Combining, Individual Fund and Account Group Financial Statements
Statistical Section
Compliance Section
a. Single Audit Reports
b. State Financial Assistance Reports
Auditor General Reports
a. Board of County Commissioners
b. Clerk of the Circuit Court
C. Property Appraiser
d. Sheriff
e. Supervisor of Elections
f Tax Collector
3) Support
Staff will perform the year-end closing of the books.
Staff will prepare all the financial statements, the introductory section and the
statistical section.
Staff will prepare work schedules and related materials as requested by the
selected firm.
Staff will provide paid invoices, canceled checks and other supportive
documentation as requested by We firm.
VI111fXTII IM., T.S�d112�S?
All responses will be reviewed by the Auditor Selection Committee.
Page 10
r
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. The following represent rte principal criteria which will be considered
during the evaluation process.
Mandatory Elements
a. The audit fur 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 the component
unit.
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:
General Government audit experience
Qualifications of individuals assigned to audit
Familiarity with Certificate of Achievement in Financial
Reporting Program
Sin and organization structure of fine
Demonstrated understanding of Indian River County's
requirements
Audit approach
F:\finance\home\sfrancis\rfp2000.wpd Page 11
REPLACES SECTION 5. COMPENSATION FOR AUDIT SERVICES CONTAINED IN
CONTRACT FOR AUDIT SERVICES DATED OCTOBER 10, 2000
o„
AMENDED SECTION 5 COMPENSATION FOR AUDIT SERVICES
Due to the changes in the requirements of the County's audit for the Florida Single
Audit Act and the financial condition assessment, both in accordance with changes to
Florida statutes, the compensation for the four annual audits occurring for the years
ending September 30, 2001 through September 30, 2004 shall be amended to be as
approved by the County Commissioners on August 20, 2002 and shall be apportioned as
follows:
FIRST YEAR (September 30, 2000)
$123,000
SECOND YEAR (September 30,2001)
$131,000
THIRD YEAR (September 30,2002)
$131,000
FOURTH YEAR (September 30, 2003)
$131,000
FIFTH YEAR (September 30, 2004)
$131,000
Payment of these fees for the year ending September 30, 2000 shall be as follows:
SEPTEMBER/OCTOBER
$ 28,000
NOVEMBER
$ 28,000
DECEMBER
$ 28,000
JANUARY
$ 26,000
FEBRUARY
$ 7,000
MARCH
$ 6,000
Payment of these fees for the year ending September 30, 2001 shall be as follows:
SEPTEMBER/OCTOBER
$ 28,000
NOVEMBER
$ 28,000
DECEMBER
$ 28,000
JANUARY
$ 26,000
FEBRUARY
$ 7,000
MARCH
$ 6,OOD
AUGUST/SEPTEMBER 2002
$ 8,000
Payment of these fees for the third, fourth, and fifth years (2002, 2003, and 2004) shall
be as follows:
SEPTEMBER/OCTOBER
$ 30,000
NOVEMBER
$ 30,000
DECEMBER
$ 30,000
JANUARY
$ 28,000
FEBRUARY
$ 7,000
MARCH
$ 6,000
This change shall be the only change to the negotiations approved by the County Conunission
on October 10, 2000.
Accepted by:
Hams Cotherman & Associates, CPAs— Chtd.
By:
Robert A. Harris, CPA
ManagingDiDirractoorr
Witness: �• sl�"V'
Printed Name: P. Ross Cotherman, ll, CPA
Wilnes . � EYtQ,y
Printed Name: reri L.3anes, A
Indian River County, Florida
Ruth M. Stanbridge _
Chainnan, Board of County Commissioners
OCC Approved: September 3, 2002
Attest:
C � —
Jeffrey K. Barton, Clerk off"Circuit Coud