HomeMy WebLinkAboutVI (D) Discussion/ Action re: Selection of Audit Firm AGENDA 6-03-97
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MEMORANDUM
TO: The Honorable Mayor and Board of City Commissioners
FROM: Wanda B. I lorton, Finance Director
DATE: May 28, 1997
RE: Auditing Services
As stated at the April 15'1' Commission meeting, a Request for Proposal (REP) for Auditing
Services for the City of Ocoee was advertised. Copies of the RFP are attached for your review.
Responses were received from the following live firms:
Kuhn, Chatham, & Seland,
Holland & Reilly
David Logan
Hacker, Johnson, Cohen& Grieb
McDirmit, Davis, Lauteria& Company
Copies of the RFP and proposals were given to each of the following who comprised the selection review
committee: Commissioner Nancy Parker, Mark Galvin-City Financial Advisor. Peggy Psaledakis-
Director of Personnel and Employee Relations, Donald Carter-Finance Supervisor and Wanda Horton,
Finance Director. Each proposal was reviewed and ranked independently by each committee member.
The committee met on May 12, 1997 to discuss the proposals. The key elements considered were:
Governmental Audit Experience
Overall Experience of the Firm
Staffing of the Firm and Firm Size
Favorable Peer Review
Experience in assisting with the Certificate of Achievement for Financial Reporting
Amount of the Audit Fee
Additional Services offered by the Firm
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Based upon the above criteria and the experience of the firm particularly with municipal audits and the
Comprehensive Annual Financial Report as well as their familiarity with the City and existing working
relationship, the Committee unanimously ranked McDirmit, Davis, Lauteria & Company number one.
The other proposals were ranked from highest to lowest as follows:
Holland & Reilly
David Logan
Kuhn, Chatham & Selalnd
Hacker. Johnson, Cohen& Grieb
Copies of the responses are on file with Mark Brace, Buyer and in the Finance department.
Action Requested
The Committee request authorization from the Mayor and Board of City Commissioners for staff
to proceed with negotiations of a contract with McDirmit, Davis, Lauteria & Company for
auditing services to be brought back to the Commission for approval and authorization for the
Mayor and City Clerk to execute the necessary documents at that time.
REQUEST FOR PROPOSAL-AUDIT SERVICES
CITY OP OCOEE
The City of Ocoee, Florida, invites qualified Certified Public Accounting
firms to submit proposals for the performance of an examination of its
financial statements. The purpose of this examination is to express an
opinion on the fairness with which the financial statements present the City's
financial position, results of operations and cash flows in conformity with
generally accepted accounting principles, and to determine whether operations
were conducted in accordance with regulatory requirements.
All expenses for submitting proposals to the City shall be borne by the
Proposer.
A. Submittal:
1. The City of Ocoee, Florida, shall receive proposals until April
8, 1997, at 10:00 A.M. , local time, from qualified firms for the
purpose of providing audit services of the City's financial
statements. Any proposal received after this time will not be
considered and will be returned only at the expense of the
Proposer.
2. It shall be the sole responsibility of the Proposer to have its
proposal delivered to the Ocoee City Hall by U.S. Mail, hand
delivery, or any other method available to them; however,
facsimile or telegraphic submittal will not be accepted. Delay in
delivery shall not be the responsibility of the City.
3. Six (6) signed originals of the proposal must be submitted to the
Ocoee City Hall in one package; clearly marked on the outside
"REP-AUDIT SERVICES", with closing time, date, and name of the
Firm, and sent or delivered to:
City of Ocoee
Office of the City Manager
ATTN: MARE BRACE
150 N. Lakeshore Drive
Ocoee, Florida 34761-2258
4. Proposals shall clearly indicate the legal name, Federal taxpayeY
identification number, address, and telephone number of the .
Proposer. The person signing the RFP on behalf of the Proposer
shall have the authority to bind the Proposer to the submitted
proposal.
5. The City reserves the right to accept or reject any or all
proposals, to waive irregularities and technicalities, and to
request resubmission or to readvertise for all or any part of the
RFP. The City shall be the sole judge of the proposal and the
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resulting negotiated agreement that is in the City's best
interest. The City's decision shall be final.
6. All applicable laws and regulations of the United States, the
State of Florida, and the City of Ocoee will apply to any
resulting agreement.
7. The successful proposer shall be required to execute an agreement,
in form and content acceptable to the City, indemnifying and
holding harmless the City, its officials, officers, employees, and
agents from all claims.
B. Requests for clarification or additional information shall be made
in writing to:
Wanda Horton
Finance Director
City of Ocoee
150 N. Lakeshore Drive
Ocoee, Florida 34761-2258
Potential proposers shall not contact City Staff, City Commissioners, or
City Consultants for information during this phase of the selection
process.
B. GENERAL INFORMATION
1. The City of Ocoee in Orange County, Florida, is a municipal
corporation with a commission/manager form of government. Ocoee is
located approximately 10 miles west of Orlando with a population
of about 19,261. The City has approximately 205 employees and a
combined operating budget of nearly $18, 900, 000. 00.
2. The City will issue a three year contract, subject to the annual
review and recommendation of the City Manager, the satisfactory
negotiation of terms, and the concurrence of the Mayor and City
Commission commencing with the Fiscal Year ending September 30,
1997, with an option to negotiate extension of the contract for
two additional years.
3. Copies of the City's Comprehensive Annual Financial Report for the
Fiscal Year ending September 30, 1996, will be available upon
request.
4. The City's accounting system is currently automated through an NCR
10000. The City Commission has approved the purchase of computers
for the City. Finance will be a part of the system utilizing
network servers. The City has purchased the American Data Group
(ADC) Fund Accounting package and other applications. We
anticipate an April, 1997, conversion. Budgets are recorded in
the system as well as amendments and transfers.
5. The Audit team will be provided reasonable work space, desks,
chairs, and storage space during the fieldwork stage.
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Additionally, a telephone, fax equipment, and photocopying
equipment will be accessible.
6. The Finance Department staff and responsible management personnel
will be responsible for furnishing documents and/or preparing
schedules that are agreed upon prior to the commencement of audit
fieldwork.
7. The City does not have an Internal Audit Department.
8. The City continues to apply for grant funding and is currently a
recipient of two (2) grants:
a) COPS Fast Award, Office of Community Oriented Policing
Services, U.S. Department of Justice; and
b) Recycling and Education Grant, Department of Environmental
Protection, State of Florida.
9. The funds to be audited include:
General Fund
Special Revenue Funds(9)
Debt Service Funds (4)
Capital Projects Funds (6)
Enterprise Funds (2)
Trust & Agency Funds (4)
Account Groups(1)
10. The CAFR for each of the Fiscal Years covered by this proposal
will be submitted for consideration by the Government Finance
Officers Association's Certificate of Achievement Program. The
selected Accounting Firm will be expected to provide technical
assistance to help the City conform to the principles and
standards of public financial reporting necessary for submission
of the City's CAFR to the Government Finance Officers
Association's Certificate of Achievement Program. The City has
received the Certificate of Excellence in Financial Reporting for
the 1988 through 1995 Comprehensive Annual Financial Reports. The
City has submitted its CAFR for the fiscal year ended September
30, 1996, to the Government Finance Officers Association's
Certificate of Achievement Program for review.
11. The selected firm will be expected to provide guidance and
assistance in the implementation of current changes in generally
accepted accounting principles.
12. The selected firm will be required to provide a Certificate of
Insurance for a minimum of $1,000, 000 liability coverage with the
City named as additional insured.
13. All requirements set forth in this proposal shall be incorporated
into the Contract between the City of Ocoee and the selected firm
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unless otherwise specified in the Contract.
C. Performance Specifications:
1. To qualify and be eligible as an external auditor, the following
minimum requirements shall be met(
a) The Firm must be established as a legal entity and be licensed
in the State of Florida. The principals of the firm shall have
performed continuous CPA services for a minimum of five
(5)years;
b) The Firm shall submit an affirmation that it meets the
independence and continuing education requirements of the
Government Auditing Standards issued by the Comptroller General
of the United States;
c) The Firm shall submit an affirmation that it has no record of
substandard field work;
d) The Firm or assigned Auditor(s) shall be a member of the
American Institute of Certified Public Accountants and the
Florida Institute of Certified Public Accountants;
e) The Firm shall clearly indicate its governmental experience;
f) The Firm shall agree to staff the audit with qualified
personnel satisfactory to the City. For audit efficiency and
expediency, the Firm shall attempt to staff the second and
subsequent annual audits with personnel from the prior annual
audit. The Firm agrees to notify the City prior to assigning
new staff to the audit and inform the City of the reasons of
the new assignment; and
g) The Firm shall indicate its approach to peer review and provide
a report of the most recent peer review. Indicate whether the
peer review included a review of local government client
activities.
2. The audit shall be performed in compliance with the following as
they exist or as each may be subsequently amended:
a) Generally Accepted Auditing Standards;
b) Generally Accepted Governmental Auditing Standards;
c) Rules adopted by the Auditor General for form and conduct of
local governmental unit audits;
d) Audits of State and Local Governmental Units (AICPA Audit Guide
Revised) ; and
e) Single Audit Act of 1984 and OMB Circular A-128.
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3. The audit shall be a financial audit as defined in Section 11.45
(1) (b) , Florida Statutes.
4 . The audit is to be conducted at the combined, combining and
individual fund financial statement and supplemental schedules
levels and shall include a review and evaluation of the City's
system of internal accounting controls.
5. The partner in charge of the audit and/or the audit manager shall
be available to attend public meetings for discussion of the final
report.
6. Working papers are the property of the Firm and should be retained
for a period of five years. Working papers will be available for
examination or duplication without charge to the Finance Director
or designee as well as representatives of the cognizant Federal
Audit Agency, the General Accounting office, the State of Florida
Auditor General or the State Board of Accountancy or any other
agency so designated by the City. The working papers will be made
available for examination or duplication, at a reasonable charge,
to successor auditors engaged by the City.
"1. The City will expect immediate compliance with any special
requests of expanded scope outside of the Contract Agreement and
will consider fee adjustment where significant change can be
demonstrated which will materially affect what the City should
have expected the Firm to accomplish at the time of fee
determination.
D. Audit Schedule
The City agrees to close its books no later than November 15th of each
year. The audit examination shall be conducted such that field work is
completed within 60 (sixty) days after the City closes its books.
Copies of the adjusting journal entries will be submitted to the City at
the completion of the field work. A draft of the management letter
shall be submitted to the Finance Director no later than January 15th of
each year for review and comment. The final opinion letter and the
completed CAFR's will be submitted to the City no later than February
15th of each year.
E. Information to be Included in the Proposal
Each proposal shall be submitted utilizing the following sequence:
1. The first page shall be the executed "Auditing Proposal Summary
Form; "
2. Description and history of the Firm, including whether the firm is
local, regional, or national;
3. The location of the office from which the work is to be done and
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the number of personnel in that office who would be working on the
audit. Firm-wide experience may be submitted in addition to, but
not in lieu of, the assigned office's experience;
4. 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 the audit. Include concurrent commitments
of each staff member during the City's audit. Also, indicate
persons authorized to represent and commit the Firm;
5. Auditor's affirmation of independence;
6. Auditor's affirmation of no substandard field work;
�. Report of peer review;
8. A description of the Firm's experience in preparing governmental
financial statements and in providing assistance in obtaining the
Certificate of Achievement;
9. A listing of Florida governmental entities, including the name and
telephone number of the principal client contact, for which the
firm is currently providing or has provided audit services, the
amount of each respective entities' budget, and the time periods
of such services. These clients may be contacted for references;
10. A brief description of any continuing professional education
seminars the Firm offers its clients;
11. A detailed description of any additional services the Firm can
provide to the City and associated costs;
12. A statement setting forth the Firm's understanding of the work to
be done and a positive commitment to perform the work within the
specified time period;
13. The proposal should describe a work plan, including an explanation
of the audit methodology to be used; and
14. The Firm's total fee for audit services for each of the first
three Fiscal Years shall be the final page.
F. Request for Modification:
The City reserves the right to request that the proposer modify his
proposal to more fully meet the needs of the City.
G. Request for Additional Information:
The proposer shall furnish such additional information as the City may
reasonably require. This includes information which indicates financial
resources as well as the ability to provide and maintain the services.
The City reserves the right to make investigations of the qualifications
of the proposer or any of its agents as it deems appropriate.
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H. Addendum and Amendment to Request for Proposals:
Should it become necessary to revise or amend any part of this Request
for Proposal, the revision will be furnished by written Addendum and
mailed to all prospective proposers who received a Request for Proposal.
It is the respective proposers' responsibility to provide the City with
a fax number that the City should use to transmit this information if
necessary.
I. Evaluation Process:
All responses will be reviewed by the Audit Selection Committee.
Responses will be evaluated based on the following criteria:
a) Governmental audit experience;
b) Familiarity with the Certificate of Achievement in Financial
Reporting program;
c) Demonstrated understanding of the City's requirements and
familiarity with the accounting system;
d) General audit experience;
e) Size and organizational structure of the firm;
t) Qualification of individuals assigned to the audit;
g) Fee structure; and
h) Completeness of response to this request for proposal.
J. Negotiations:
Fees negotiated will be for the complete audit and preparation of the
Comprehensive Annual Financial Report and will be negotiated in
accordance with Florida Statutes. The Firm ranked first will be
requested to negotiate a Contract. If a satisfactory Contract cannot be
agreed upon, negotiations will then be terminated and undertaken with
the next highest ranked firm until such time as a satisfactory Contract
can be formulated.
K. Billings and Payments:
Monthly progress payments based upon percentage of completion will be
made upon receipt of a proper invoice from the Firm. The final payment
will be made after acceptance of the management letter and the
Comprehensive Annual Financial Report by the City.
L. Public Entity Crime Information Statement:
All invitations to bid as defined by section 287.012 (11) , Florida
Statutes, requests for proposals as defined by Section 287.012 (16) ,
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Florida Statutes, and any contract document described by Section
287.058, Florida Statutes, shall contain a statement informing persons
of the provisions of paragraph (2) (a) of Section 287.133, Florida
Statutes, which reads as follows:
"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 on
a contract to provide any goods or services to a public entity, may not
submit a bid on a contract with a public entity for the construction or
repair of public building or public work, may not submit bids 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 not transact business with any public entity
in excess of the threshold amount provided in Section 287.017, for
CATEGORY TWO for a period of 36 months from the date of being placed on
the convicted vendor list. "
All vendors who submit a bid or Request for Proposal to the City of
Ocoee are guaranteeing that they have read the previous statement and by
signing the bid or proposal documents are qualified to submit a bid or
proposal under Section 287.133, (2) (a) Florida Statutes.
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