HomeMy WebLinkAboutItem #10 Award of RFP #07-004 Auditing ServicesSlime Center of Good L11�
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AGENDA ITEM COVER SHEET
Meeting Date: October 2, 2007
Item # 10
Reviewed By.
Contact Name: Joyce Tolbert Department Director:
Contact Number: 1516 City Manager:
Subject: -Award of RFP #07-004 Auditing Services
Background Summary:
In compliance with Florida Statutes, Section 218.391 (Auditor Selection Procedures), and the City of Ocoee Purchasing Code,
proposals were solicited from Certified Public Accounting Firms with Governmental Accounting experience to submit a
response to the City of Ocoee Request for Proposals (RFP) to provide Independent Financial Auditing Services for the fiscal
years ended September 30, 2007, 2008, and 2009. A renewal option for an additional two years may be negotiated. The firm must
be duly licensed under Florida Statutes, Chapter 473 and qualified to conduct audits in accordance with government auditing
standards as adopted by the Florida Board of Accountancy.
Issue:
Award of Auditing Services term contract to one of the three firms evaluated by the selection committee.
Recommendations
Staff recommends that the City Commission award the term contract for RFP #07-004 Auditing Services to one of the three
firms evaluated by the selection committee. With only four points separating the top two firms, the Selection Committee
recommends the City Commission select the firm. The contract term will be for three fiscal years with a renewal option for an
additional two years, and for additional auditing services, if required by the City; and authorize the Mayor, City Clerk, and
Staff to execute all necessary contract documents with the selected firm.
Attachments:
1. RFP #07-004
2. Carter,Belcourt & Atkinson Proposal
3. Cherry Bekaert & Holland Proposal
4. McDirmit Davis & Co. Proposal
5. RFP Checklist
6. RFP Evaluation Totals
Financial Impact:
See attached RFP Checklist for pricing of all responses.
Type of Item: (please mark with an 'k )
Public Hearing
Ordinance First Reading
_ Ordinance Second Reading
_ Resolution
_ Commission Approval
X Discussion & Direction
Original Document/Contract Attached for Execution by City Clerk
X Original Document/Contract Held by Department for Execution
Reviewed by City Attorney
Reviewed by Finance Dept.
Reviewed by )
For Clerk's Deot Use
Consent Agenda
Public Hearing
Regular Agenda
N/A
N/A
N/A
2
Mayor
S. Scott Vandergrift
e Ceciter of Good Lrti .
�
Commissioners
Gary Hood, District 1
City Manager
Scott Anderson, District 2
Rusty Johnson, District 3
Robert Frank
Joel Keller, District 4
STAFF REPORT
TO: The Honorable Mayor and City Commissioners
FROM: Joyce Tolbert, Purchasing Agen
DATE: October 2, 2007
RE: Award of RFP #07-004 Auditing Services
ISSUE
Award of Auditing Services term contract to one of the three firms evaluated by the selection committee.
BACKGROUND/DISCUSSION
In compliance with Florida Statutes, Section 218.391 (Auditor Selection Procedures), and the City of Ocoee Purchasing
Code, proposals were solicited from Certified Public Accounting Firms with Governmental Accounting experience to submit
a response to the City of Ocoee Request for Proposals (RFP) to provide Independent Financial Auditing Services for the fiscal
years ended September 30, 2007, 2008, and 2009. A renewal option for an additional two years may be negotiated. The firm must
be duly licensed under Florida Statutes, Chapter 473 and qualified to conduct audits in accordance with government auditing
standards as adopted by the Florida Board of Accountancy.
The Finance Department reviewed the three (3) proposal packages and all were considered responsive. Complete copies of all
proposals are available in the Finance Department for review. The RFP Selection Committee, consisting of five (5) members,
evaluated the proposals: Wanda Horton, Finance Director; Jamie Croteau, Assistant City Manager; Beth Eikenberry, City
Clerk; Jeff Hayes, Parks and Recreation Director; and Jim Carnicella, Human Resources Director.
The public RFP Selection Committee meeting was held on September 12, 2007 to evaluate the three (3) responses. The
Selection Committee evaluated and ranked the firms from 0-500 points on specific evaluation criteria. References were
checked on all firms and the selection committee determined all firms are qualified to provide auditing services for the City.
However, with only four points separating the top two firms, the Selection Committee recommends the City Commission
select the firm. The Respondents and their rankings are as follows:
1. Cherry Bekaert & Holland, LLP
469 Points
(1)
2. McDirmit Davis & Company
465 Points
(2)
3. Carter, Belcourt & Atkinson P.A.
432 Points
(3)
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RFP #07-004
AUDITING SERVICES
CHECKLIST
8/28/07 2:00 pm
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Annul PriceAnnual
price
NQ.
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Adoendum #1
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proposal = CA R
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$43,500 - 2007
Carter, Belcourt & Atkinson
$47,850 - 2008
1
P.A.
yes
yes
Active
$49,285 - 2009
$ 5,000.00
$45,500 - 2007
Cherry Bekaert & Holland
$49,500 - 2008
2
LLP
yes
yes
Active
$52,500 - 2009
$ 9,500.00
3
McDirmit Davis & Company
yes
yes
Active
$ 29,000.00
$ 7,000.00
4
5
6
7
8
9
10
Pater of Good t.i-
Mayor
S. Scott Vandergrift
City Manager
Robert Frank
CITY OF OCOEE
Commissioners
Gary Hood, District 1
Scott Anderson, District 2
Rusty Johnson, District 3
Joel F. Keller, District 4
REQUEST FOR PROPOSALS
RFP #07-004
AUDITING SERVICES
RFP #07-004
3 thru 4
5 thru 7
8 thru 11
12
12
13 thru 20
21
22
23 (115 pages)
RFP DOCUMENTS
Legal Advertisement
Introduction
General Terms & Conditions
*Summary of Litigation
*Addenda Acknowledgment
SCOPE OF SERVICES/PROPOSAL FORM
*Submit with Proposal
End Table of Contents
Scope of Services
*Price Proposal Form
*Company) nformation/SignatureSheet
Exhibit A - 2006 CAM
RFP #07-004 2
LEGAL ADVERTISEMENT
Ocoee City Commission
Sealed proposals will be accepted for REQUEST FOR PROPOSALS (RFP) #07-004,
AUDITING SERVICES, no later than 2:00 P.M., local time, on AUGUST 28, 2007.
Proposals received after that time will not be accepted or considered, and will be
returned unopened. No exceptions will be made. The City reserves the right to reject
any and all proposals and waive informalities.
The City of Ocoee, Florida, in conformance with Florida Statutes, Section 218.391
(Auditor Selection Procedures), and the policies and procedures of the City of
Ocoee (City) is soliciting proposals from Certified Public Accounting Firms with
Governmental Accounting experience to submit a response to our RFP to provide
Independent Financial Auditing Services in accordance to the RFP documents.
The fiscal years ended September 30, 2007, 2008, and 2009 will be included in this
RFP. A renewal option for an additional two years may be negotiated. The firm
must be duly licensed under Florida Statutes, Chapter 473 and qualified to
conduct audits in accordance with government auditing standards as adopted by
the Florida Board of Accountancy.
Each Respondent shall submit one (1) original and five (5) copies of the required
proposal documents, in a sealed envelope plainly marked on the outside with the
appropriate RFP number and closing date and time. Proposals will be received at the
City of Ocoee, Attn: Joyce Tolbert, Purchasing Agent, 150 N. Lakeshore Drive, Ocoee,
Florida 34761-2258. Proposals will be publicly opened and read aloud in the City Hall
Conference Room on the above -appointed date at 2:01 PM, local time, or as soon
thereafter as possible.
Interested Firms may secure a copy of the documents through Demandstar by
accessing the City's website at www.ci.ocoee.fl.us under Finance/Purchasing, or copies
are available from the Purchasing Agent for a non-refundable reproduction and/or
administrative fee of $20.00. Checks should be made payable to the City of Ocoee.
Copies via e-mail are not available and partial sets of RFP documents will not be
issued.
To ensure fair consideration for all Respondents, companies interested in providing the
required services may be disqualified if they have contacts with the Mayor, City
Commissioners, or any City staff, other than the Purchasing Agent concerning the RFP
during the submission or selection process.
Award of Contract: The City of Ocoee reserves the right to waive technicalities or
irregularities, reject any or all proposals, and/or accept that proposal that is in the best
interest of the City, price, qualifications and other factors taken into consideration. The
City reserves the right to award the Contract to the Respondent, which, in the sole
discretion of the City, is the most responsive and responsible Proposer, price,
qualifications and other factors considered.
Pursuant to Section 287.133(2)(a), Florida Statutes, interested individuals or firms who
have been placed on the convicted vendor list following a conviction for public entity
RFP #07-004 3
crimes may not submit a Proposal on a contract to provide services for a public entity,
may not be awarded a consultant contract and may not transact business with a public
entity for services, the value of which exceeds CATEGORY TWO for a period of 36
months from the date of being placed on the convicted vendor list.
No fax or electronic submissions will be accepted.
City Clerk
August 12, 2007
RFP #07-004 4
Introduction:
A. Any questions or concerns regarding this RFP should be addressed in writing
to the Finance Department, City of Ocoee, FL, Attention: Joyce Tolbert,
Purchasing Agent (407) 905-3100, extension 1516 and fax (407) 656-3501 or
email jtolbert@ci.ocoee.fl.us, and shall be received not later than August 22,
2007. Any clarifications/changes will be made in the form of written addenda
only, issued by the Purchasing Agent. Proposers shall not contact other City
staff or other City consultants for information before the award date. Any
contact with any other member of the City Staff, City Commission, or its Agents
during this time period may be grounds for disqualification.
B. Proposals must be received as one (1) original and five (5) copies by the
Finance Department not later than 2:00 P.M., local time, on August 28,
2007. Proposals received by the Finance Department after the time and date
specified will not be considered, but will be returned unopened. "Postage Due"
items will not be accepted. Proposals or any information transmitted by fax or e-
mail will not be accepted. Proposals shall be delivered in a sealed envelope,
clearly marked with the RFP number, title, and opening date and time to:
City of Ocoee Finance Department
Attention: Purchasing Agent
150 N Lakeshore Drive
Ocoee, FL 34761-2258
C. Proposals will be reviewed by a 5-member selection committee appointed by the
City Manager and will be ranked in accordance with the established evaluation
criteria. Date, time, and location of any scheduled selection committee
meeting(s) for this RFP will be announced publicly. The selection committee
shall recommend ranking of the proposals and recommendation for selection to
the City Commission for approval. Please be aware that all City Commission
meetings are duly noticed public meetings and all documents submitted to the
City as a part of a bid constitutes public records under Florida law.
D. All Proposers shall thoroughly examine and become familiar with this RFP
package and carefully note the items specifically called for in this RFP which
must be submitted.
E. Submission of a proposal shall constitute an acknowledgment that the
proposer has complied with Paragraph E. The failure or neglect of a proposer
to receive or examine a document shall in no way relieve it from any obligations
under its proposal or the contract. No claim for additional compensation will be
allowed which is based upon a lack of knowledge or understanding of any of the
Contract Documents or the scope of services. Proposals shall be in compliance
with the contract documents/scope of services.
RFP #07-004 5
F. Any response by the City to a request for clarification or correction will be made
in the form of a written addendum which will be mailed, e-mailed or faxed by
Demandstar to all parties to whom the RFP package have been issued. The City
reserves the right to issue Addenda, concerning date and time of review
committee meeting, clarifications, or corrections, at any time up to the date and
time set for proposal submission. In this case, proposals that have been
received by the City prior to such an addendum being issued, will be returned to
the Respondent, if requested, unopened. In case any proposer fails to
acknowledge receipt of any such Addendum in the space provided on the
Addendum and fails to attach the Addendum to their proposal, its' proposal
will nevertheless be construed as though the Addendum had been received
and acknowledged. Submission of a proposal will constitute
acknowledgment of the receipt of the RFP Documents and all Addenda.
Only interpretations or corrections provided by written Addenda shall be binding
on the City. Proposers are cautioned that any other source by which a proposer
receives information concerning, explaining, or interpreting the RFP Documents
shall not bind the City.
G. Any of the following causes may be considered as sufficient for the
disqualification and rejection of a proposal:
a) Submission of more than one (1) proposal for the same work by an individual,
firm, partnership or corporation under the same or different name. For
purposes of this subparagraph, firms, partnerships or corporations under
common control may be considered to be the same entity;
b) Evidence of collusion between or among the proposers;
c) Being in arrears on any existing contracts with the City, or litigation with the
City or having defaulted on a previous contract with the City;
d) Poor, defective or otherwise unsatisfactory performance of work for the City
or any other party on prior projects which, in the City's judgment and sole
discretion, raises doubts as to the proposer's ability to properly perform the
services; or
e) Any other cause which, in the City's judgment and sole discretion, is sufficient
to justify disqualification of proposer or the rejection of its proposal.
No proposal may be withdrawn and all proposed prices shall remain firm
for a period of ninety (90) days after the time and date scheduled for the
proposal deadline.
The City reserves the right to accept or reject any or all proposals, to waive
informalities or irregularities, to request clarification of information
submitted in any proposal, or to readvertise for new proposals. The City
may accept any item or group of items of any proposal.
The City will make an Award, in its absolute and sole discretion to the most
responsible and responsive proposer whose proposal, in the City's
opinion, will be most advantageous to the City, price and other factors
considered. The City reserves the right, to aid it in determining which
proposal is responsible, to require a proposer to submit such evidence of
qualifications as the City may deem necessary, and may consider any
RFP #07-004 6
evidence available to the City of the financial, technical, and other
qualifications and abilities of a proposer, including past performance
(experience) with the City and others. The City Commission shall be the
final authority in the award of any and all proposals.
RFP #07-004 7
GENERAL TERMS & CONDITIONS:
BID SECURITY:
None Required.
2. PERFORMANCE AND PAYMENT BONDS:
None Required.
3. PATENT INDEMNITY:
Except as otherwise provided, the successful respondent agrees to indemnify the
City and its officers, agents, and employees against liability, including costs and
expenses for infringement upon any letters patent of the United States arising out
of the performance of this Contract.
4. PRICING:
Pricing should be provided as indicated on the Scope of Work/Price Proposal
Form attached, to include any alternate proposals. Please note that alternate
proposals will not be accepted unless specifically called for on the Scope of
Services/Price Proposal Form. Cost of preparation of a response to this proposal
is solely that of the Respondent and the City assumes no responsibility for such
costs incurred by the Respondent.
By submission of this proposal, the proposer certifies, and in the case of a joint
proposal, each party thereto certifies as to its own organization, that in
connection with this procurement:
a) The prices in this RFP have been arrived at independently, without
consultation, communication, or agreement for the purpose of restricting
competition, as to any matter relating to such prices with any other proposers
or with any competitor;
b) Unless otherwise required by law, the prices which have been provided in this
RFP have not been knowingly disclosed by the proposer and will not
knowingly be disclosed by the proposer prior to opening, directly or indirectly
to any other proposer or to any competitor;
c) No attempt has been made or will be made by the proposer to induce any
other person or firm to submit or not to submit a proposal for the purpose of
restricting competition. Every contract, combination or conspiracy in restraint
of trade or commerce in this State is unlawful (Florida Statutes, Section
542.18 and all applicable federal regulations);
RFP #07-004 8
5. PROTESTS:
The City's Finance/Purchasing Department will consider Protests seeking
contract award, damages, and/or any other relief. Any proposer seeking to file a
Bid Protest SHALL use the following procedures:
1. A proposer SHALL file a written Protest under this Article, or be barred
any relief.
2. A Protest: (a) must be in writing (oral protests will NOT be
acknowledged); (b) the content of the Protest shall fully state the factual and
legal grounds for the protest and the legal basis for the relief requested; and (c)
The Protest shall be filed with the Purchasing Agent not later than three (3)
calendar days after the posting of the notice of intent to award or
recommendation of award by staff.
3. After a Protest has been properly filed with the City, the City, by and
through its Finance/Purchasing Department shall make a determination on the
merits of the protest not later than five (5) business days after receipt of the
protest. If the City denies the protest, the City may proceed with the award of the
Contract unless enjoined by order of a Court of competent jurisdiction.
4. A Protest shall be limited to the following grounds: (a) issues arising from
the procurement provisions of the Project Manual and/or the Proposal Package
or Contract Documents; and/or (b) applicable federal, state or local law.
6. PAYMENT TERMS:
Payment for work completed will be made within (30) days of approved invoice.
Any contract resulting from this solicitation is deemed effective only to the extent
of appropriations available.
The City of Ocoee, Florida has the following tax exemption certificates assigned:
• Florida Sales & Use Tax Exemption Certificate No. 58-00-094593-54C;
and
• The City is exempt from federal excise, state, and local sales taxes.
7. DRUG -FREE WORKPLACE:
If applicable, provide a statement concerning the respondent's status as a Drug -
Free Work Place or evidence of an implemented drug -free workplace program.
8. CERTIFICATION OF NON -SEGREGATED FACILITIES
The respondent certifies that it does not and will not maintain or provide for the
Respondent's employees any segregated facilities at any of the Respondent's
RFP #07-004 9
establishments and that the Respondent does not permit the Respondent's
employees to perform their services at any location, under the Respondent's
control, where segregated facilities are maintained. The Respondent agrees that
a breach of this certification will be a violation of the Equal Opportunity clause in
any contract resulting from acceptance of this Proposal. As used in this
certification, the term "segregated facilities" means any waiting room, work areas,
time clocks, locker rooms and other storage and dressing areas, parking lots,
drinking facilities provided for employees which are segregated on the basis of
race, color, religion, national origin, habit, local custom, or otherwise. The
Respondent agrees that (except where the Respondent has obtained identical
certification from proposed contractors for specific time periods) the Respondent
will obtain identical certifications from proposed subcontractors prior to the award
of such contracts exceeding $10,000 which are not exempt from the provisions of
the Equal Opportunity clause, and that the Respondent will retain such
certifications in the Respondent files.
The non-discriminatory guidelines as promulgated in Section 202, Executive
Order 11246, and as amended by Executive Order 11375 and as amended,
relative to Equal Opportunity for all persons and implementations of rules and
regulations prescribed by the U.S. Secretary of labor, are incorporated herein.
9. STATEMENT OF AFFIRMATION AND INTENT:
The Respondent declares that the only persons or parties interested in their
proposal are those named herein, that this proposal is, in all respects, fair and
without fraud and that it is made without collusion with any other vendor or official
of the City of Ocoee. Neither the Affiant nor the above named entity has directly
or indirectly entered into any agreement, participated in any collusion, or
otherwise taken any action in restraint of free competitive pricing in connection
with the entity's submittal for the above project. This statement restricts the
discussion of pricing data until the completion of negotiations and execution of
the Agreement for this project.
The Respondent certifies that no City Commissioner, other City Official or City
employee directly or indirectly owns assets or capital stock of the Responding
entity, nor will directly or indirectly benefit by the profits or emoluments of this
proposal. (For purposes of this paragraph, indirect ownership or benefit does not
include ownership or benefit by a spouse or minor child.)
The Respondent certifies that no member of the entity's ownership or
management is presently applying for an employee position or actively seeking
an elected position with the City. In the event that a conflict of interest is
identified in the provision of services, the Respondent agrees to immediately
notify the City in writing.
The Respondent further declares that a careful examination of the scope of
services, instructions, and terms and conditions of this RFP has occurred, and
that the proposal is made according to the provisions of the RFP documents, and
will meet or exceed the scope of services, requirements, and standards
RFP #07-004 10
contained in the RFP documents.
Respondent agrees to abide by all conditions of the negotiation process. In
conducting negotiations with the City, Respondent offers and agrees that if this
negotiation is accepted, the Respondent will convey, sell, assign, or transfer to
the City all rights, title, and interest in and to all causes of action it may now or
hereafter acquire under the Anti-trust laws of the United States and the State of
Florida for price fixing relating to the particular commodities or services
purchased or acquired by the City. At the City's discretion, such assignment
shall be made and become effective at the time the City tenders final payment to
the Respondent. The proposal constitutes a firm and binding offer by the
Respondent to perform the services as stated.
10. PUBLIC ENTITY CRIME STATEMENT:
All invitations to bid as defined by Section 287.012(11), Florida Statutes,
requests for proposals as defined by Section 287.012(16), 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 proposals 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 Section 287.017, for CATEGORY TWO for a period of 36 months
from the date of being placed on the convicted vendor list."
All bidders that 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 documents are qualified to submit a bid under Section
287.133, (2)(a), Florida Statutes.
11. INSURANCE TERMS & CONDITIONS:
Proof of Professional Liability Insurance: Provide a current insurance certificate
providing proof of Professional Liability Insurance. The successful Respondent
shall be required to provide evidence of both General (Public & Property) Liability
and Professional Liability Insurance in the form of a certificate of insurance
issued on behalf of the City of Ocoee by companies acceptable to the City at the
following minimum limits and coverage's with deductible amounts acceptable to
the city:
Comprehensive General Liability Insurance: $1,000,000.00
(The City of Ocoee is to be named as an additional insured)
RFP #07-004 11
Professional Liability Insurance: $1,000,000.00
12. SUMMARY OF LITIGATION:
Provide a summary of any litigation, claim(s), bid or contract dispute(s) filed by or
against the proposer in the past five (5) years which is related to the services that
the proposer provides in the regular course of business. The summary shall
state the nature of the litigation, claim, or contact dispute, a brief description of
the case, the outcome or projected outcome, and the monetary amounts
involved. If none, please so state.
(Attach additional sheets if necessary)
13. ACKNOWLEDGMENT OF ADDENDA:
Proposer acknowledges receipt of the following addenda:
No.
Dated
No.
Dated
No.
Dated
RFP #07-004 12
City of Ocoee
Scope of Services
Request for Proposals (RFP) #07-004
Auditing Services
City of Ocoee invites Certified Public Accounting Firms with Governmental Accounting
experience to submit a response to our Request for Proposals (RFP) to provide
Independent Financial Auditing Services. The firm must be duly licensed under Florida
Statutes, Chapter 473 and qualified to conduct audits in accordance with government
auditing standards as adopted by the Florida Board of Accountancy. The scope of
services to be provided shall include:
SERVICES TO BE PROVIDED
A. Financial Audit
1. The proposing firm (the firm) selected will be required to perform a
financial audit in accordance with generally accepted auditing standards
of the financial accounts and records of the City of Ocoee, Florida.
2. The audit shall comply with the Rules of the Auditor General of the
State of Florida, Statements on Auditing Standards (GAAS),
Government Audit Standards issued by the Comptroller of the United
States, OMB Circular A-133 and other applicable OMB circulars,
Florida Single Audit Act and other Florida Statutes as applicable,
Audits of State and Local Government Units (AICPA Audit Guide
revised, and other applicable authoritative standards.
3. As a result of the examination, 25 copies of the following reports will be
required, along with an electronic copy for permanent recordkeeping:
a. Auditor's report;
b. Report on compliance and internal control structure;
C. Report on compliance with requirements applicable to each
major program and internal control over compliance in
accordance with OMB Circular A-133;
d. Management Letter;
RFP #07-004
13
e. Electronic version of the Annual Financial Report.
B. Single Audit
1. The firm selected will also be required to perform a single audit of all
federal financial assistance provided to the City.
2. The audit shall comply with the Rules of the Auditor General of the State
of Florida and be in accordance with the Single Audit Act of 1984 and
Amendments thereof.
3. As a result of the examination, 25 copies of the following reports will be
required, along with an electronic copy for permanent recordkeeping:
a. Auditor's report on financial statements, including the
supplementary schedule of federal assistance, must include
a statement whether the individual fund information is fairly
presented in all material respects in relation to the general
purpose financial statements.
b. A report on internal accounting control, including internal
controls, used to manage any federal financial assistance
programs.
C. Comments on compliance with the terms and conditions of
federal laws and regulations applicable to major and non -
major federal assistance programs.
Firms interested in providing these services should make their interest known by
submitting one (1) original and five (5) copies of their sealed proposal to:
City of Ocoee Finance Department
Attn: Purchasing Agent
150 N Lakeshore Drive
Ocoee, FL 34761
Proposals must be received no later than 2:00 p.m., local time, August 28, 2007.
Proposals received after that time will not be accepted or considered, and will be
returned unopened. No exceptions will be made. The City reserves the right to reject
any and all proposals and waive informalities.
RFP #07-004
14
DESCRIPTION OF ENTITY AND ACCOUNTING SYSTEM
A. General Information
The City of Ocoee operates under a commission/manager form of
government. Ocoee is home to 32,175 residents. The City is primarily a
residential and retail area with a small amount of light industry and
commercial business. The City provides water, wastewater, garbage, and
stormwater services. Ocoee has received the GFOA Certificate of
Achievement for Excellence in Financial Reporting for sixteen consecutive
years.
B. The Accounting System
1. Entity Definition
• The funds encompassed in the audit scope of services include all
of those activities defined as a part of the reporting entity of the
City (See attached copy of the City Fiscal Year Ended September
30, 2006 Comprehensive Annual Financial Report (CAFR) for
detail of funds (Exhibit A). Any material changes to the entity
during the term of the contract for audit services will be cause for
renegotiation of the basis of fee.
2. General Information
a. The accounting system is a window based application. The
software is American Data Group (ADG): Purchasing, A/P,
A/R, G/L, Payroll, Utility Billing, Permits and Licensing.
b. Vendor checks are processed on a bi-weekly basis.
Purchase orders are issued as evidence of commitments.
There is an encumbrance entered against the expenditure
account at the time of commitment and liquidated at the time
of payment.
C. Payroll is processed on a bi-weekly basis. The City currently
has approximately 305 full-time budgeted positions and 62
part-time budgeted positions. There are no substantial
fluctuations in personnel during the year.
RFP #07-004
15
d. Utility customers are billed in house.
e. The revenue and expenditure budgets for General Fund and
enterprise funds are integrated into the accounting system.
f. As of September 30, 2006
• Total Assets were $170,076,520
• Long-term debt obligations were $55,951,706
3. Accounting Policies and Procedures
See footnote 1 of our CAFR - Fiscal Year Ended September 30, 2006
(Exhibit A) for a list of our significant accounting policies.
SCHEDULE OF AUDIT WORK
It is required that the CAFR be published by March 31 st of each year. The firm
selected must be able to meet the following schedule which indicates approximate
completion dates (dates may be adjusted for first year):
By October Interim work complete
By November 30 The City will have adjustments made, books
closed and trial balance prepared
By March 10 The firm's field work and review of CAFR will be
completed
By 2"d City Commission Presentation of CAFR to City Commission by
Meeting in March by the firm and staff
The selected firm will be required to sign a contract with the City to provide the
required services. The exact schedule will be set on an annual basis and agreed upon
by both parties. The fiscal years ended September 30, 2007, 2008, and 2009 will be
included in this RFP. A renewal option for an additional two years may be negotiated.
In addition, the firm must be flexible to expand the scope of services, at a negotiated
price, in order to provide professional expertise and support related to future bond
issues throughout the term of the contract. The City will maintain the right to cancel the
contract if auditor performance is unsatisfactory.
RFP #07-004
INFORMATION REQUESTED FROM THE FIRM
In order to simplify the review process and obtain the maximum degree of comparison,
the firm must use the following format in responding to the RFP.
A. Title Page
Include the title "Proposal for Audit Services", the name of the firm,
local address, telephone number, name of the contact person, and the
date.
B. Table of Contents
Include a clear identification of the material by section and page
number. Include a statement that all working papers and reports will be
retained at auditors' expense for a minimum of five years after release
of audit, unless the firm is notified in writing by the City of the need to
extend the retention period. The firm will be required to make working
papers available, without charge, to the City upon request.
C. Letter of Transmittal
Limit to one or two pages and include the following:
1. Understanding of the work to be done and a positive commitment to
perform the work within the schedule previously discussed.
2. State the name of the person who will be authorized to make
representations for the firm, their title, address, and telephone number.
3. State whether the firm is local, regional, national, or international.
4. State the location of the office from which the work is to be done and the
number of professional staff at that office.
D. Mandatory Criteria
1. Affirm that the firm is properly licensed to practice public accounting in
the State of Florida and that all supervisory personnel assigned to the
audit are CPAs.
E. Firm's Qualifications (0-35 points)
1. Describe the firm's recent (last 3 years) governmental experience,
RFP #07-004
17
emphasizing work of the local office and provide a contact name and
phone number for each.
2. Describe staff training programs.
3. Give indications of the firm's depth in the governmental audit areas.
4. Describe the firm's commitment to the governmental sectors.
5. Does the firm participate in the AICPA's voluntary quality review
program? If so, indicate time of last review and results.
6. Describe the management advisory services the firm provides and
indicate which of those services are provided at the local level.
7. Describe the firm's experience in providing accounting services related to
the issuance of revenue and general obligation bonds.
F. Personnel Qualifications (0-30 points)
Identify manager and all other supervisory personnel that will be
assigned to this audit. Include resumes that identify experience in
governmental audits, and indicate type and amount of continuing
education. Include any other data that will indicate personnel's ability to
perform the services described. Any reduction in the level of
qualifications and expertise of personnel during the term of the contract
must be consented to by the City.
G. Audit Approach (0-25 points)
Submit a work plan to accomplish the scope of the RFP. The work
plan should include time estimates for each significant segment of
the work and the staff level to be assigned. Where possible,
individual staff members should be named. The planned use of
specialists should be specified. Indicate your ability to meet the
schedule outlined in the Schedule of Audit Work. Indicate to what
extent statistical sampling techniques and analytical procedures will
be employed. In addition, what approach is proposed for gaining and
documenting the auditor's understanding of internal control structure?
Finally, indicate what approach is proposed for determining which
laws and regulations should be tested for compliance.
H. Price Proposal (0-10 points)
EVALUATION OF PROPOSALS
RFP #07-004
18
Proposals will be reviewed and evaluated by a committee based upon the following
criteria and information requested from the firm:
1. Responsiveness of the proposal related to the scope of work.
2. Ability, capacity, and skill of the audit firm to perform the services on a timely
basis.
3. Responses of the client references.
4. Experience of the business and individual members of the business in
accomplishing similar services.
5. The sufficiency of financial resources and ability of business to perform the
contract.
6. The quality, availability, and Adaptability of the services to the particular need
requested.
7. Such other information as may be required or secured.
The short listed firms may be invited for oral interviews prior to final selection. After the
committee has evaluated the short listed firms, the City Commission shall select the
highest -ranked qualified firm or will document the reason for not selecting the highest -
ranked firm. The City reserves the right to accept or reject any or all proposals, to waive
informalities or irregularities, to request clarification of information submitted in any
proposal, or to re -advertise for new proposals. The City may accept any item or group of
items of any proposal.
The City will make an Award, in its absolute and sole discretion to the most responsible
and responsive proposer whose proposal, in the City's opinion, will be most
advantageous to the City, price and other factors considered. The City reserves the
right, to aid it in determining which proposal is responsible, to require a proposer to
submit such evidence of qualifications as the City may deem necessary, and may
consider any evidence available to the City of the financial, technical, and other
qualifications and abilities of a proposer, including past performance (experience) with
the City and others. The City Commission shall be the final authority in the award of
any and all proposals.
No proposal may be withdrawn and all proposed prices shall remain firm for a
period of ninety (90) days after the time and date scheduled for the proposal
deadline.
RFP #07-004
19
PRICE PROPOSAL FORM
RFP #07-004 AUDITING SERVICES
TOTAL ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED
IN RFP #07-004 FOR FISCAL YEARS ENDING 2007, 2008, 2009:
$ annually
dollars &
(A renewal option for an additional two years may be negotiated).
cents
TOTAL ANNUAL PRICE PROPOSAL FOR PREPARATION OF THE COMPREHENSIVE
ANNUAL FINANCIAL REPORT (CAFR), IF REQUIRED:
$ annually
dollars &
Date
Company Name
License Number
Authorized Officer (print)
Authorized Signature
RFP #07-004
20
cents
RFP #07-004 COMPANY INFORMATION/SIGNATURE SHEET
FAILURE TO COMPLY WITH THESE RFP INSTRUCTIONS WILL RESULT IN DISQUALIFICATION OF
YOUR PROPOSAL. PLEASE SIGN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND
ALL RFP INSTRUCTIONS AND THAT THE PRICES REFLECTED ON THE "SCOPE OF SERVICES/PRICE
PROPOSAL FORM" ARE ACCURATE AND WITHOUT COLLUSION.
COMPANY NAME
AUTHORIZED SIGNATURE (manual)
NAME/TITLE (PLEASE PRINT)
STREET ADDRESS
CITY STATE ZIP
FEDERAL ID #
Individual Corporation
Sworn to and subscribed before me this
Personally Known or
Produced Identification
(Type of Identification)
RFP #07-004
TELEPHONE (INCLUDE AREA CODE)
FAX (INCLUDE AREA CODE)
E-MAIL ADDRESS
IF REMITTANCE ADDRESS IS DIFFERENT
FROM PURCHASE ORDER ADDRESS,
PLEASE INDICATE BELOW:
Partnership Other (Specify)
day of
20
Notary Public - State of
County of
Signature of Notary Public
Printed, typed or stamped
Commissioned name of Notary Public
21
- Exhibit A -
2006 Annual Financial Report
22
0,roposal to erovial�l-
Auditing Services
RFP #07-004
for
_ r eater of Good j-,;,..
August 28, 2007
Original
CY` a CEf r, BIED PUBLIC U&A��nsVr`NTS AND BUSINESS AD.PA
Contact:
Deborah P. Garringer
331 South Florida Avenue, Suite 400, Lakeland, FL 33801-4626
863.603.4834 • 800.749.6264
,S�e CentI Of C'7 ood Gtvy�
City of Ocoee - Proposal for Auditing Services
TABLE OF CONTENTS
A. TITLE PAGE
B. TABLE OF CONTENTS
C. LETTER OF TRANSMITTAL .......................................
D. MANDATORY CRITERIA ..........................................
Pages
......................................1
.....................................................................................3
E. FIRM°S QUALIFICATIONS
1. Governmental Entity Experience..............................................................................................................3
2. Staff Training Programs............................................................................................................................4
3. Depth in Governmental Audit Areas.........................................................................................................4
4. Commitment to Governmental Sectors....................................................................................................5
5. AICPA Quality Review Program...............................................................................................................6
6. Management Advisory Services...............................................................................................................6
7. Experience in Providing Accounting Services Related to Issuance of Bonds..........................................6
F. PERSONNEL QUALIFICATIONS
1.
Partners, Supervisory and Staff................................................................................................................7
2.
Continuing Professional Education...........................................................................................................8
3.
Notification of Changes Policy..................................................................................................................9
G. AUDIT
APPROACH..............................................................................................................................................10
1.
Proposed Segmentation of the Engagement.........................................................................................16
2.
Level of Staff to be Assigned..................................................................................................................16
3.
Ability to Meet the Schedule...................................................................................................................17
4.
Extent of Statistical Sampling Techniques.............................................................................................17
5.
Type and Extent of Analytical Procedures.............................................................................................18
6.
Approach for Understanding Internal Control Structure........................................................................18
7.
Approach to Determining Laws and Regulations Subject to Audit Test Work.......................................19
H. PRICE PROPOSAL..............................................................................................................................................19
APPENDIXA — PEER REVIEW REPORT...................................................................................................................20
APPENDIXB — RESUMES.........................................................................................................................................23
APPENDIXC — FORMS.............................................................................................................................................29
Carter, Belcourt &Atkinson, P.A.
CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS
August 27, 2007
Joyce Tolbert, Purchasing Agent
City of Ocoee
150 North Lakeshore Drive
Ocoee, FL 34761-2258
Dear Ms. Tolbert:
Carter, Belcourt & Atkinson, P.A. (CBA) appreciates this opportunity to present our firm to the City of Ocoee (the
City). We will value the City as an important client and will provide high quality service, aimed at exceeding your
expectations on a long-term basis.
Statement of Understanding and Commitment to Perform
We understand the requirements set forth by the City and have responded to those requirements in our proposal.
We will audit the City's financial statements as of and for the year ended September 30, 2007, and the two
subsequent fiscal years. A renewal option for an additional two years may be negotiated. The audit will be
performed in accordance with auditing standards generally accepted in the United States of America, and
Government Auditing Standards issued by the Comptroller General of the United States and the Office of
Management and Budget (OMB) Circular A-133, Audits of States, Local Governments, and Non -Profit
Organizations, and Chapter 10.550, Rules of the Auditor General of the State of Florida. We will express an
opinion on the fair presentation of the City's basic financial statements and an in -relation -to opinion on the
combining and individual fund statements and schedules, including the Schedule of Expenditures of Federal and
State Awards. We will be responsible for performing certain limited procedures involving required supplementary
information required by the Governmental Accounting Standards Board as mandated by auditing standards
generally accepted in the United States of America.
CBA is committed to performing the work and meeting the stipulated timelines identified in the City's Request for
Proposal of final report delivery by the date of the second City Commission meeting in March 2008 for the
September 30, 2007 audit as well as all future audit deadlines. However, we will provide an engagement letter
annually to reconfirm our understanding.
Authorized Representative
The following person will be authorized to make representations for the CBA team:
Deborah P. Garringer, CPA, Shareholder
331 South Florida Avenue, Suite 400, Lakeland, FL 33801-4626
Tel 863.603.4834
Local, Regional, National or International
CBA, a local Florida accounting firm, has been operating in Central Florida since 1979 and has grown to be one
of the Tampa Bay Area's largest accounting and consulting firms. According to the Tampa Bay Business
Journal's List of Accounting Firms issued on January 26, 2007, CBA is ranked the 7th largest accounting firm in
the Tampa Bay Area. CBA is represented by 79 professional and support staff with offices in Lakeland and
Tampa.
Location of Office
Work on this engagement would be handled out of our Lakeland office with support from our Tampa office. In our
Lakeland office, we have a total of 31 professional staff.
331 South Florida Avenue, Suite 400 Lakeland, Florida 33801-4626 (863) 687-4010 FAX (863) 683-9667 (800) 749-6264
101 East Kennedy Boulevard, Suite 1250 Tampa, Florida 33602-5197 (813) 223-1316 FAX (813) 229-5952 (800) 933-3456
Ms. Joyce Tolbert
City of Ocoee, Florida
August 27, 2007
Page 2
Why Select the Team of CBA?
We believe that the experience and qualifications of the team of CBA will provide the City with the best solution
for the future. Our team brings to the City the experience of the traditions of auditing Florida municipal
governments similar in size to the City of Ocoee as well as the experience to meet its needs in the future.
In addition our team is:
• Dedicated to Working with Governments
o CBA has formed a team of professionals who primarily serve governmental and not -for -profit
organizations allowing us to provide value-added services to our clients because our
professionals in this group spend all of their time working in these areas. Our team has extensive
experience in performing Federal and State Single Audits as well as a long history auditing
Florida municipal governments.
Committed to Quality:
o To ensure maintenance of the standards of working excellence required by our firm, CBA is an
active member of sections of the American Institute of Certified Public Accountants Division for
CPA Firms, including the Center for Public Company Audit Firms and PCPS, the AICPA Alliance
for CPA firms. We have completed nine successive voluntarily requested peer reviews; and in
each case, have obtained unqualified opinions.
o CBA is a member of the AICPA Governmental Audit Quality Center, a firm -based, voluntary
membership Center designed to help CPAs meet the challenges of performing quality single
audits in this unique and complex area. The Center's primary purpose is to promote the
importance of quality governmental audits and the value of such audits to purchasers of
governmental audit services. The Center also offers resources to enhance the quality of a firm's
governmental audits.
Efficient and Utilize a Customized Audit Approach:
o Our firm has developed an automated workpaper system that allows us to prepare and maintain
all of our workpapers electronically. We utilize a risk -based audit approach, with audit
programs that will be customized to the City. This will allow us to spend less time crunching
numbers and typing workpapers and more time analyzing areas that are important to the success
of the City. Using this approach, we will manage our team in a manner that will allow us to bring
our wealth of resources and knowledge to the City in a seamless manner.
We look forward to meeting with you to discuss further your needs and our ability to serve you now and in the
future in a cost-effective manner. Thank you for the opportunity to submit our proposal to the City of Ocoee.
Sincerely,
Deborah P. Garringer
Shareholder
Carter, Belcourt & Atkinson, P.A.
(C_BA__)CWfd,sBel�cco wt &Atkmson, PA.
hot
Centex of Good LIV.
City of Ocoee - Proposal for Auditing Services
D. MANDATORY CRITERIA
Carter, Belcourt & Atkinson, P.A. is properly licensed and registered in the State of Florida with the Department of
Business and Professional Regulation, Division of Certified Public Accountants (Board of Accountancy) under
license No. AD 0009178.
In addition, all assigned key professional staff are properly licensed and certified to practice in Florida.
E. FIRM'S QUALIFICATIONS
1. GOVERNMENTAL ENTITY EXPERIENCE
To demonstrate the significant government audit experience of the team, we have provided below a listing of the
Governmental clients of the firm, performed in the last three (3) years, similar in scope as the City.
EngagementClient ..- of Work Date Partners Hours Client Contact
Carter, Belcourt & Atkinson, P.A.
City of
Annual audit and
9/30/06
Deborah
1,100
228 South Massachusetts Avenue
Lakeland
single audit of
Garringer
Lakeland, FL 33801-5012
financial assistance
programs for 35
Alan Fisk
Douglas B. Thomas
City of
years,
City Manager
Lakeland
implementation of
863.834.6206
Department of
GASB 34 for 2002-
Electric &
2003, and Certified
Greg Finch
Water Utilities
Sales and Use Tax
Finance Director
Audit in 1999, 2004,
863.834-6203
and 2006
Children's
Technical
9/30/06
Tori
250
1002 East Palm Avenue
Board of
assistance to the
Lehman
Tampa, FL 33605-3550
Hillsborough
Children's Board of
County
Hillsborough County
Deborah
Steve Costner
in the
Garringer
Accountant
implementation of
813.229.2884
GASB 34 for the
fiscal year ending
September 30, 2003
and annual audit
and single audit for
fiscal years ending
September 30, 2005
and 2006
Cuter, �& PACA�U,
S.�e Center o Good
City of Ocoee - Proposal for Auditing Services
EngagementClient
..- of Work
Date
Partners
Hours
Client Contact
Lakeland Area
Annual audit and
9/30/06
Deborah
200
1212 George Jenkins Boulevard
Mass Transit
single audit of
Garringer
Lakeland, FL 33801
District
financial assistance
programs for 26
Alan Fisk
Bob English
years
Chairman of the Board
863.534.6450
Danny Ours
Transit Director
863.688.7433
2. STAFF TRAINING PROGRAMS
CBA provides an average of 60-80 hours of continuing professional education each year for every member of our
professional staff, which exceeds the 40 hour standard imposed by the AICPA. This continuing education helps
assure that we stay abreast of current technical developments to continually enhance the professional skills of our
staff and support the Firm's overall quality control system.
Our firm maintains an employee to administer an HR database of all licensing and related CPE requirements.
Careful monitoring and management of this process serves to ensure that all professionals have met the
requirements of their licenses.
3. DEPTH IN GOVERNMENTAL AUDIT AREAS
To demonstrate the significant government audit experience of the team, we have provided below a listing of the
Governmental clients of the firm similar in scope as the City.
Municipalities City of Lakeland * ** ***
• City of Temple Terrace — agreed upon procedures
Electric and Water I • City of Lakeland Department of Electric & Water Utilities
Special District Children's Board of Hillsborough
County * ***
• Lakeland Area Mass Transit District
• Hillsborough County Hospital Authority
***
• Bayshore Fire Protection and Rescue -
Special District ***
• Beacon Meadows Special Dependent
Tax District ***
• Boca Grande Fire Control - Special
District ***
• Brandon Groves North Special
Dependent ***
• Buckhorn Estates Special Dependent
District ***
• Country Place Maintenance District
***
• Country Run Maintenance District
***
• East Lake Park Special Dependent
Tax District ***
• Indian Hills -Hickory Ridge II Special
***
• Lake Brant Special Dependent
District ***
• Lake Heather Special Dependent
Tax District ***
• Lake Magdalene Estates West
Special ***
CBA Bdowl& nsonAPA
A
Gent r1 ood Lf 1,.
State Agency
City of Ocoee - Proposal for Auditing Services
• Buckhorn Oaks Special Dependent
District ***
• Carrollwood South Special Dependent
Tax District ***
• Country Lakes Special Dependent Tax
District ***
• Florida Department of Health
• South Pointe Special Dependent Tax
District ***
• The Cove at Bayport Colony Special
***
• Valrico Manor Special Dependent
Tax District ***
• Village Estates Vilest Special
Dependent ***
County Health Departments of Dade, Broward, Orange, Pinellas and
Hillsborough Counties
Key:
* Clients for whom we have performed Single Audits as required by Circular A-133.
** Current recipient of GFOA Certificate of Excellence.
*** Assisted with GASB 34 implementation.
4. COMMITMENT TO GOVERNMENTAL SECTORS
Carter, Belcourt & Atkinson, P.A. has formed a team of professionals who primarily serve governmental and not -
for -profit organizations. Our industry specialization allows us to provide value-added services to our clients
because our professionals spend most of their time working in these areas.
CBA has been providing auditing services to Florida municipal government for many years. In addition, our team
has extensive experience in performing Federal and State Single Audits and we are familiar with many different
types of grant programs. Over 30 governmental and not -for -profit organizations in Central Florida have turned to
CBA for professional services. The services CBA has provided to governmental entities and not -for -profit
organizations are:
• Annual financial and compliance audits including Single Audits under OMB A-133 audit criteria;
• Special compliance audits to ascertain compliance with local, state and federal laws and regulations;
• Consulting engagements to for implementation of GASB 34 for a large municipality and a special
district;
• Human resource and employee benefit consulting;
• Certified audits for Florida sales and use taxes; and
• A variety of other tax and financial management services including:
Accounting and record keeping;
Payroll tax, personal property tax and sales tax reports;
Training of client personnel;
Preparation and/or review of Form 990, Return of Organization Exempt from Income Tax; and
Assistance with bond issues including agreed upon procedures and issuance of comfort letters.
CBA wf &A mm, PA
Bm
CerLter of Good Z,i,.
City of Ocoee - Proposal for Auditing Services
5. AICPA QUALITY REVIEW PROGRAM
To ensure maintenance of the standards of working excellence required by our firm, Carter, Belcourt & Atkinson,
P.A. is an active member of sections of the American Institute of Certified Public Accountants Division for CPA
Firms, including the Center for Public Company Audit Firms and PCPS, Private Companies Practice Section. To
be a participating member firm of these practice sections, a firm must obtain an independent peer review of its
quality control policies and procedures to ascertain the firm's compliance with auditing and attest standards. The
scope of the peer review is comprehensive in that it specifically reviews the quality control policies and
procedures of the participating firm.
Carter, Belcourt & Atkinson, P.A. has completed nine successive voluntarily requested peer reviews; in each
case, we obtained unqualified opinions (the best opinion allowed) on our quality control program and work
procedures. The latest peer review included a review of an audit of a governmental entity. A copy of the report
on our most recent peer review dated November 9, 2005 is included in Appendix A.
6. MANAGEMENT ADVISORY SERVICES
CBA has substantial resources available to meet the ever -changing needs of our clients. Our philosophy
emphasizes close working relationships with our clients in finding practical solutions to problems and providing
clear, realistic consulting advice. Examples of these include:
• Internal financial statement model — we have assisted in the development of an internal reporting
model that more closely reflected the format of the external financial statement. This project involved
coordination among the controller's office, the budget office, the information services department and
the development office.
• Organizational Systems Management — we have assisted many of our clients in several
compensation related areas, such as salary and benefit studies, and organizational structure
engagements.
• Performance Audits — we have experience conducting internal audits, performance audits,
operational analysis and other similar services for a large number of governmental and exempt
clients.
• Tax Consulting — we have experience in providing sales tax consulting and performing certified audit
engagements.
7. EXPERIENCE IN PROVIDING ACCOUNTING SERVICES RELATED TO ISSUANCE OF BONDS
CBA has participated in several bond issues with its municipal client through agreed upon procedures reports,
review of official statements, and issuance of comfort letters.
CBA Carter, Bdcoc tLI&Alkinson, PAS
CenteGood
e►h0�
City of Ocoee - Proposal for Auditing Services
F. PERSONNEL QUALIFICATIONS
1. PARTNERS, SUPERVISORY AND STAFF
Our Team's audit experience and organizational structure offer clear advantages. However, the ultimate success
of our relationship is largely attributable to one key component — our people. The proposed Engagement Team is
well qualified to provide outstanding, timely, and personalized service to the City. The work that we will perform
for the City will be conducted in a timely, planned and orderly manner, without the uncertainty and confusion
associated with a delayed, last minute performance. Your Engagement Team is available to address your needs
and concerns.
We would like to emphasize our commitment to maintaining professional staff continuity in servicing this audit
engagement. Many of our clients rely on having the same resources available to them because it reflects a
commitment to their organization and a deeper understanding of what their organization is trying to achieve. Our
staff builds a relationship based upon integrity, trust, and mutual respect, which is a primary reason that we
maintain long-term professional relationships. In addition, we provide active shareholder involvement in the audit
fieldwork and presentations to allow you to directly benefit from their industry knowledge and expertise. This
active involvement in the project by shareholders is also critical to ensure adequate supervision of the audit and
continually improve upon efficiency.
The engagement shareholder and manager that you would deal with take pride in their client service ethic and in
responding promptly to client inquiries. Their policy is to check voice mail throughout the day and return phone
calls usually on the day received or within 24 hours at the latest. Likewise, they are typically able to access e-mail
even when out of the office and respond promptly.
We have provided resumes for several individuals who are available to serve on your audit team for your
approval. The resumes found in Appendix 8 detail educational background as well as educational level, years of
experience, professional affiliations and client names for governmental audits.
CBACarter CERTIFIED PB�OG tBU�APA
Center of Good zj..
* City of Ocoee - Proposal for Auditing Services i3
2. CONTINUING PROFESSIONAL EDUCATION
Listed below is the relevant governmental continuing professional education for the past three (3) years for our
audit team:
Carter, Belcourt & Atkinson, P.A.
Deborah
CPE A&A Forum — Government
10/26/04
6
Garringer
Auditing Environment
CPE A&A Forum — Instructor on
10/26/04
3
"Attestation Engagements"
HARC A&A Seminar
6/2/05
1
2005 Practitioners Symposium
6/8/05
1
Governmental Update
6/8/05
8
FAS 133 Seminar
6/9/05
8
Florida Accounting and Business
6/16/05
4
2
Expo
State and Local Government
8/23/05
12
Accounting Conference
Governmental and Not -for -Profit
10/28/05
8
Update
2006 Practitioners Symposium
6/14/06
13
3
3
Florida Accounting and Business
6/1/07
10
4
Expo
Not -for -Profit Organizations
6/8/07
5
8
3
Conference
FICPA State and Local
8/20/07
2
9
Government Accounting
Conference
Tori Lehman Not -for -Profit Organizations
6/7/05
5
5
2
Conference
Governmental Update
6/8/05
8
National Not -for -Profit Industry
6/24/05
7
7
1
Conference
Governmental and Not -for -Profit
10/28/05
8
Annual Update
Nonprofit Accounting Report - Bisk
6/9/06
3
Education
Governmental Accounting Report -
6/9/06
3
Bisk Education
Performing the Required Risk-
5/31/07
8
Based Audits Under SAS 104-11
21st Annual Government & Non-
6/1/07
7
profit Accounting & Auditing
Update
FICPA Not -for -Profit Organizations
6/8/07
3
9
Conference
Cl Br�i�
Canter Bdcowf &Atkinson, PA.
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ire Center of Good Lf N115
-
City of Ocoee - Proposal for Auditing Services
Tori Lehman AICPA Not -for -Profit Industry
6/19/07 2
11 4
Conference
Governmental Accounting Report -
6/28/07
3
Bisk Education
Ed Grossman Accounting and Auditing Forum
10/26/04
2 6
Government and Not -for -Profit
3/3/05
2
Update
A&A Educational Forum
5/13/05
5 2
A&A Educational Forum -instructor
5/13/05
2
on "Independence Issues"
Governmental Update
6/08/05
8
FAS 133 Seminar
6/09/05
8
2006 AICPA National Advanced
7121 /06 1
15 2
Accounting and Auditing
Technical Symposium
21st Annual FICPA Accounting
9/29/06
9 4
Show
Ethics for Governmental CPAs in
4/25/07
4
Florida - Instructor
FICPA Polk Chapter Meeting -
5/3/07
3
Speakers from Auditor Generals
Office
FICPA Florida Accounting &
6/1/07
10 6
Business Expo
Community Foundation of Greater
6/15/07
7 1
Lakeland A&A Seminar
Gerry Appleby Government and Non-profit Annual 10/1/05 6
Update
Auditing Nonprofits: Tips and 11/1/05 6
Traps
Trisha Floyd Special Topics in Public Utility 4/21106 21
Accounting
Governmental/Not-for-Profit 7/30/06 45
Accounting Course at USF
9
3. NOTIFICATION OF CHANGES POLICY
In assigning staff to engagements, eve place high importance on maintaining continuity of staff from one year to
the next. This is important from both a client service as well as an audit efficiency perspective. As our staff gains
familiarity with a client, they are able to complete the engagement more efficiently and are able to identify
recommendations for improvement within our client's operations. We can assure quality of staff because our
engagements in the governmental and not -for -profit area are staffed with team members from the governmental
and not -for -profit team. This insures the highest level of quality and supervision so that staff familiar with the
engagements are being utilized at all times.
(CBrA) CartEDPl1BLCADDDU&Atkinson, PA.
City of Ocoee - Proposal for Auditing Services
We acknowledge the City's right to approve or reject any necessary replacement staff.
10
As with any accounting firm, it does at times become necessary to replace a member of the engagement team.
When this occurs they are replaced with someone of comparable skills and experience. While we strive to
maintain continuity, the turnover that is inherent in today's environment provides for staff rotation and the
additional benefit of a fresh approach. We have been very successful over the years in appropriately staffing our
jobs and this has resulted in high client retention rates and tremendous growth for the firm.
G. AUDIT APPROACH
We differentiate our services from competitors through close personal involvement of our decision makers on a
daily basis and regular, focused communication with your management team. Using a risk -based approach with
audit programs customized to the City increases our efficiency and allows our team to spend more time analyzing
areas important to your success.
Our audit team will work closely with the City's management team through the entire risk -based audit process,
which includes the following phases:
Systems
Audit Evaluation, Fieldwork Reporting
Planning Control Testing,
& Audit Program
Development
Phase I: Audit Planning
Planning affords us an opportunity to work closely with you to develop audit objectives and outline a plan for
meeting those objectives. The planning process includes:
• Identifying the areas of audit emphasis;
• Assessing risk and materiality;
• Designing audit techniques and procedures;
• Discussing and assigning responsibilities; and
• Formalizing the reporting timetable.
During the planning stage, we will ask you to identify areas of higher risk, which we will address by designing
specific control or substantive tests customized to the City. Our approach includes obtaining direct input from
your management team to ensure our understanding of the scope of perceived risk, your perspectives on the risk,
and your expectations of the audit. We will also review your current audit reports to enhance our efficiency in
requesting information and minimize your staff's time input during our fieldwork.
Our key audit planning steps include:
• Entrance Conference. Designed to give our team a comprehensive understanding of the City, the
conference also allows us to coordinate audit timeframes and due dates, as well as determine the level of
assistance your management team needs. At the close of the conference, we will prepare and deliver a
Client Assistance Letter.
CB—Acam;Bit&, PA
CERTIFIED PUBLIC ACCOUNTANTS ANC BUSMESS ADVISORS
Jrenter of Good Lut
City of Ocoee - Proposal for Auditing Services 11
Preliminary Analytical Review. During the review we will study trends, percentage changes, ratios, and
other financial data relationships. Using computer -assisted audit techniques we will compare your current
financial data to at least the two previous years of data for unusual fluctuations. We will also review your
budget to analyze fluctuations and develop an understanding of your planned initiatives.
Fraud Risk Assessment. Effective Dec. 15, 2002, SAS 99, Consideration of Fraud in a Financial
Statement Audit," superseded existing audit standards related to fraud. While the new standard does not
change the auditor's responsibility for fraud detection, it does provide additional guidance and
requirements for improving auditor performance. In accordance with SAS 99, the audit team will assess
the risk of material misstatement in the City's financial statements due to fraud. Steps include:
Gathering information to identify fraud risks;
Synthesizing the information gathered into potential fraud risks;
Identifying risks that could result in material misstatement of the financial statements due
to fraud;
Assessing the identified risks to determine whether an audit response is required; and
Developing responses to identified fraud risks.
An important component in our planning process, the SAS 99 brainstorming session, which includes all members
of the engagement team, will allow us to identify fraud risk factors and link them to appropriate audit responses.
By focusing audit resources on areas presenting the greatest risk for material misstatement, we will improve the
efficiency and effectiveness of the audit process.
• Documentation of the Internal Control Structure. This two-part study includes a system overview and
testing of the system for adherence to acceptable standards. Our approach to testing is discussed in the
section on Phase II.
Designed to provide an understanding of your accounting and administrative systems, the review also
evaluates the effectiveness of your control environment and the flow of transactions through your
accounting system. Organizational structure, delegation of responsibility, and authority and other controls
are examined based on internal control questionnaires, observation, review of appropriate
documentation, and our extensive experience working with governmental entities. Conclusions will focus
on the extent of your reliance on internal controls and the effectiveness of controls in preventing or
detecting errors and irregularities.
• Documentation of Information Technology Systems. This two-part study includes a system overview
and testing of the system for adherence to acceptable standards. Our approach to testing is documented
on the following page and is discussed in the section on Phase H.
(C__B_A_)CW# �Belcouur &Athnson, PA
City of Ocoee - Proposal for Auditing Services
Perform IT
Entity Level
Controls
Assessment
Ter
Create and Testing
rmine
Document FFiinaancially
An
Financially Anticipated Categorization
'
Workprograms Summarize
IT Systems
Significant Significant
Signlgicant System to Determine
(Entity Level Results
Reliance?
IT Issues Systems
Reliance? IT Specialists
Systems? Needed
& General
Perform IT
Controls)
General
Controls
No
Assessment
and Testing
Stop — No
No
Further IT
Controls Work
Needed. This is
Extremely No
Unusual
Nonreliance on IT Controls
plan IT Application Controls Testing, Manual
Rollfoward IT
Document the process to identify what
Controls, Testing and Substantive Testing
Entity Level
changes/modifications are needed to testing of
The level of testing of IT Application Controls
Controls and
report accuracy, manual controls, and to the
and Manual Controls is less when ITGC
General
audit program when IT controls are not relied
are effective.
Controls
upon for a financially significant system.
12
• Assessment of Control Risk. Control risk is defined as the risk that material financial statement
misstatements or irregularities will not be prevented or detected in a timely manner. In assessing control
risk, our team will consider:
Prior findings in the area in question;
Recordkeeping and accounting;
Control procedures and environment;
Materiality of financial impact;
Likelihood that material amounts of cash or other assets could be misappropriated
through fraud or theft;
High public or political sensitivity to the subject matter; and
Newness of the activity or changes in related conditions.
• Establishment of Materiality Levels. Our team will determine our planning level of materiality using
professional judgment based on the audit team's assessment of financial statement amounts and the
results of the risk assessment and internal control evaluation. At the audit's end we will review any
known misstatements and their effect on your financial statements, working with you to determine
whether passing on known misstatements will materially affect the City's financial statements.
• Determination of Sampling Techniques. Sample sizes representative of the population of items within
an account balance or class of transactions will be determined at the beginning of the project. We use
guidelines established by auditing standards which specify requirements for statistical and non -statistical
sampling, to perform tests of internal control, substantive tests as part of the examination of your financial
statements.
Phase II: Systems Evaluation, Control Testing, and Audit Program Development
During Phase II, we will determine whether your control policies and procedures are functioning properly in
significant transaction classes. Tests of controls and transactions, including inspection of documents, reviewing
the propriety of transactions, and reviewing the independence of transaction processing, will be used to determine
(CBA) Carter .dcow.f A.ins.,PA.
,renter of Good Lit o g
r:M..
t
Citv of Ocoee - Proposal for Auditing Services
13
with reasonable assurance that control procedures are operating as planned and whether further testing will be
required.
After controls have been documented, assessed and tested, your audit team will finalize the City's audit plan.
The plan will include procedures to be completed by each area, a timeline for completion and an estimate of
budget required to complete each task. Audit programs are tailored based on risk assessments completed for
each area of the audit. We use the following resources to develop our audit programs:
• The American Institute of Certified Public Accountants (AICPA) "Audits of State and Local Government
Units" Audit Guide;
• Applicable state statutes and local requirements; and
• Our knowledge of the industry in general and your entity specifically.
Your audit program will include the following elements:
• Audit objectives and procedures;
• Review of applicable statutes, rules, and regulations, as appropriate;
• Review of findings and recommendations contained in your prior audit reports;
• Review of your internal control system with notes on strengths and deficiencies;
• A sampling plan and selection of a representative sample;
• Additional tests as required;
• Results of tests with documentation of exceptions and conclusions; and
• A draft of findings.
The audit program will be supported by and referenced to work papers that document each audit step. All audit
procedures will be supervised, documented, and performed in accordance with generally accepted auditing
standards as set forth by the AICPA.
Phase III: Fieldwork
Year-end fieldwork is the culmination of the continuous audit planning process. It involves updating our
understanding of:
• Your business operation;
• Business processes;
• Internal controls;
• Financial and nonfinancial indicators; and
• Results of reviews to affirm that our audit programs are addressing risks.
Our year-end fieldwork will focus on operating statement activities and the year-end statement of financial position
account reconciliations, putting all the pieces together to provide meaningful and accurate information to financial
statement users.
Key steps include:
• Obtaining audit confirmations, representation letters, and attorney letters;
• Performing substantive tests on account balances using analytical procedures, sampling, recalculation,
and verification;
• Utilization of the results of internal control tests to determine the size, nature, and timing of substantive
tests on the financial statement balances;
• Evaluation of all test results to assess financial statement impact; and
• Evaluation of the fairness of test results in comparison with the audit objective as each audit phase is
completed.
CBA cm�ter; Belcoccrt Atkinson, PA.
CEHi1FlED PUBLIC ACCOUNiANT8 MID BUSINESSADASORS
City of Ocoee - Proposal for Auditing Services
14
Our team will keep the City's management up to date on progress throughout the course of the project. We will
discuss preliminary findings and potential problems or opportunities as we discover them and/or in an exit
meeting with your management team.
Phase IV: Reporting
The audit culminates in our report on your audited financial statements, which will include an opinion on the fair
presentation of the City's basic financial statements as they conform to generally accepted accounting principles.
If necessary (as determined by Yellow Book requirements), we will include a report on compliance of your internal
control structure to applicable laws and regulations based on the auditor's understanding of the control structure.
At the completion of the audit, we will submit the following draft reports to management:
• Year-end financial statements with auditors' report;
• Report on internal control over financial reporting and on compliance and other matters based on an audit
of financial statements performed in accordance with "Government Auditing Standards" (if required);
• Management letter, which will offer recommendations to improve internal auditing controls, administrative
efficiencies, and profitability;
• Report on matters required by SAS 61, which includes a discussion of new accounting procedures
implemented by the City, proposed audit adjustments, and significant audit estimates, along with other
items; and
• Other reports as necessary under statutory requirements.
Once reports have been reviewed by management and are approved in final form, we will be available to meet
with your audit/finance committee to review the reports and address questions.
Single Audit Approach
The CBA team has experience with single audit clients and with several federal cognizant agencies. During the
audits, we have worked closely with a variety of federal agencies including the departments of Agriculture,
Education, Labor, Transportation, Health and Human Services, and Housing and Urban Development, as well as
the Environmental Protection Agency.
We will begin the City's single audit procedures (in years when federal expenditures exceed $500,000) by
developing a comprehensive understanding of laws and regulations that have a direct, material effect on the
determination of amounts in your financial statements. This understanding will be based on:
• Identification of federal award programs and total federal expenditures;
• Determination of major federal award programs;
• Discussions with the City's staff;
• Review of Board minutes, prior audits, and grant and contractual agreements; and
• Review of the relevant federal program requirements from the "OMB Circular A-133 Compliance
Supplement" issued by the Office of Management and Budget and the "Catalog of Federal Domestic
Assistance."
Our single audit approach is based on guidance available in OMB Circular A-133 and Government Auditing
Standards issued by the Comptroller General of the United States and the Florida Single Audit Act. When testing
your major federal and state programs, we follow the suggested audit procedures included in the Compliance
Supplement. For federal and state programs for which guidance is not available, we will establish programs using
applicable grant agreements and federal and state regulations.
(C—BA-0Cal ', B&owf &Atkinson,, PA.
> :2
City of Ocoee - Proposal for Auditing Services
1s
Key Elements of the Audit Process for the Single Audit
The audit team will work closely with your management team through the entire single audit process, which
includes the following elements:
Phase I: Planning
• Gain an understanding of your major internal control systems and environment;
• Review your administrative systems for federal, state and other grant programs;
• Assess risk related to federal programs;
• Conduct a brainstorming session in accordance with SAS 99, including federal, state and other grant
program administration;
• Obtain the "Schedule of Expenditures of Federal and State Awards" (SEFA);
• Review your prior year SEFA and "Schedule of Findings and Questioned Costs";
• Prepare an analysis of federal and state programs according to type;
• Determine major programs by type based on the audit risk analysis in the assessment performed; and
• Determine the reliance to be placed on your systems of control for federal and other grant programs.
Phase II: Fieldwork
Review audit programs from the Compliance Supplement to determine the adequacy of the programs;
• Review and document the requirements of the programs to be tested;
• Revise programs as necessary based on program requirements;
• Interview staff, management, counsel, and officials based on planning;
• Determine sample selection methodology and the types of procedures that will be performed using
selected transactions and documents;
• Select the transactions and documents for testing;
• Perform the audit procedures as documented in the audit programs;
• Document testing results; and
• Evaluate the results of testing and determine areas that require further examination.
Phase III: Review of Testing Results
• Establish the review protocol for evaluation of results;
• Review potential findings and questioned costs and communicate with the City's management;
• Review compliance requirements and compare expected results to the exceptions noted to evaluate
materiality; and
• Draft a summary of the testing results.
Phase IV: Reporting
• Review federal, state, and other grant reporting requirements;
• Determine which internal control findings are reportable conditions or material weaknesses;
• Prepare findings and draft the auditor's reports;
(C-B-N)c4ner" �P �&Atkinson,PA
Audit Planning
• Entrance Conference
• Preliminary Analytical Review
• Fraud Risk Assessment
• Documentation of Internal Control Structure
• Assessment of Control Risk
• Establishment of Materiality Levels
• Determination of Sampling Techniques
Systems Evaluation &
Control Testing
• Are controls policies and procedures
established and functioning properly?
Audit Program Development
• Tailored based on risk assessments
completed for each audit area
Fieldwork
• Obtain audit confirmations
• Substantive tests on account balances
• Federal and State Grants Testing
• Assess financial statement impact
• Evaluate fairness of test results in
comparison with the audit objectives
Reporting
• Report on internal control over financial
reporting and on compliance and other
matters
• Management letter
• Report on matters required by SAS 61
• Other reports, as necessary
Timeframe: Planning meeting to be
held in September with planning
work to occur.
Hours By Level:
Shareholder 15
Manager 15
Staff 10
Timeframe: October
Hours By Level:
Shareholder 10
Manager 30
Staff 15
Timeframe: December and
January
Hours By Level:
Shareholder 20
Manager 30
Staff 150
Timeframe: Draft report by February
and final reports prior to March 10
Hours By Level:
Shareholder 15
Manager 15
Staff 30
JC,r,ter of Gooc(
ot
City of Ocoee - Proposal for Auditing Services 17
3. ABILITY TO MEET THE SCHEDULE
We are proposing the following key dates as targets to ensure that the City of Ocoee's deadlines can
be met successfully:
• By September 15 — hold audit planning meeting
• By September 20 — list of all schedules to be prepared by the City will be provided by the
auditors.
• By November 30 — all final trial balances and lead schedules will be made available to the
auditors.
• By December 3 — audit year-end fieldwork to begin.
• By March 10 — final review of CAFR to be completed by auditors and all other reports to be
delivered to the City.
4. EXTENT OF STATISTICAL SAMPLING TECHNIQUES
Audit sampling is the application of an audit procedure to less than 100 percent of the items within an account
balance or class of transactions for the purpose of evaluating some characteristic of the balance or class. Our
auditors extensively use sampling procedures to obtain satisfactory audit evidence.
Those sampling procedures routinely include statistical and nonstatistical sampling based upon:
• the overall objective of the sample;
• the nature of the sample population;
• the nature of the item(s) being examined and/or the proposed outcome of the sample results;
• the sample size; and
• the significance of the anticipated results.
Ordinarily, the significant portions of the sampling expected to be performed are identified at the onset of the
engagement and are coordinated with the remaining auditing procedures to produce timely and efficient results.
We currently expect to perform the following types of sampling:
• Attribute sampling - to test the rate of deviation from a prescribed internal control procedure to
determine whether planned reliance on that control is appropriate.
In addition to tests of compliance with prescribed control procedures, attribute sampling will be used for
certain substantive procedures to test for possible unrecorded transactions and for testing existing
account balances. It is also used extensively to test compliance with applicable laws and regulations; and
• Variables sampling - to reach a conclusion about the adequacy or reasonableness of an account
balance.
Examples of areas that we will apply sampling strategies include:
• Selection of cash disbursement transactions for testing;
• Selection of federal and state grant transactions for compliance testing; and
• Selection of transactions to determine compliance with laws and regulations.
We also expect to utilize these procedures to assess the propriety of conclusions reached in the overall financial
statement presentation.
(C—BA--)s&gym, PA.
CERTIFIED PUSUC ACCOUNTANTS AND BUSINESS ADVISORS
Ce11ter of Good Z...
S�l. rwl .fie
City of Ocoee - Proposal for Auditing Services
5. TYPE AND EXTENT OF ANALYTICAL PROCEDURES
18
In performing analytical procedures we will focus our attention inward, stressing your particular accounting system
and the manner in which it develops reliable financial information about your operations. This is accompanied by
a more intensive study of the resulting financial figures themselves. Our auditors perform analytical review
procedures to ascertain that the recorded figures should "make sense," by being consistent with each other and
with known external changes that are taking place. Changes from the previous year, or even month -to -month
changes in the financial figures as well as changes in ratios between various figures, are analyzed to ascertain
that they are logical and reflect changes in operations or financial position that are known to have occurred.
Preliminary Analytical Review. During the audit planning stages, we will study trends, percentage changes, ratios,
and other financial data relationships. Using computer -assisted audit techniques we will compare your current
financial data to at least the two previous years of data for unusual fluctuations. We will also review your budget
to analyze fluctuations and develop an understanding of your planned initiatives.
Year-end Fieldwork. Our year-end fieldwork will focus on operating statement activities and the year-end
statement of financial position account reconciliations, putting all the pieces together to provide meaningful and
accurate information to financial statement users. Key steps include performing substantive tests on account
balances using analytical procedures, sampling, recalculation, and verification.
6. APPROACH FOR UNDERSTANDING INTERNAL CONTROL STRUCTURE
While our overall audit objective is to perform procedures sufficient to enable us to express an opinion on your
financial statements, other primary objectives must be met and appropriately satisfied.
Initially, our preliminary audit activities are concentrated on obtaining and documenting our understanding of your
control environment (the methods and measures adopted to safeguard your assets, check the accuracy and
reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed
managerial policies). We review the systems in place, by which management obtains the information, protection,
and control, which are vital to the success of any financial operation. We also focus on any required control
functions, which are established to ensure compliance with any federal, state, or local laws and regulations that
are both required and/or unique to your financial operation.
The next step is to develop a formal plan, or strategy, to meet the overall audit objectives. This usually involves
reviewing predecessor auditors' working papers and discussing specific aspects of the audit with your personnel.
Subsequently, we will determine the nature, extent and timing of the work to be performed and develop a written
audit program documenting specific instructions to be utilized by our auditors during the conduct of the audit.
After the formal audit plan is developed, we perform tests of the relevant internal control systems to determine
compliance with your prescribed policies, procedures, laws and regulations, as applicable. Our procedures are
also specifically designed to incorporate the requirements of the Single Audit Act of 1996, OMB Circular A-133, as
amended, and the Rules of the Auditor General, as applicable.
To assist us in identifying specific areas subject to audit testing, we will use practice aids developed by the FICPA
(Compliance Auditing in Florida), the Office of Management and Budget (Compliance Supplement for Single
Audits of State and Local Governments), and information obtained from reviewing applicable Florida Statutes.
The results of the tests are used to update our documented understanding of your internal control systems and to
identify specific areas of your overall control environment, which require additional audit attention. It is also our
policy to communicate the results of our compliance testing to your management on a timely basis as we note
them so that corrective actions can be implemented, if necessary, prior to the end of the audit engagement.
B&At onPACBP " ,A
tie Center of Good Liv�g
City of Ocoee - Proposal for Auditing Services 19
7. APPROACH TO DETERMINING LAWS AND REGULATIONS SUBJECT TO AUDIT TEST WORK
During our engagement planning we will document our understanding of all significant laws and regulations
applicable to the City of Ocoee, and identify any new laws or regulations that require audit testing.
Typically, we will test for compliance with applicable laws and regulations simultaneously with testing for
compliance with specific internal control systems to efficiently detect all potential problems in advance of our de-
tailed testing procedures. These procedures are initially employed to assess the risk of relying on existing internal
control systems and related procedures to determine the extent of substantive testing done after the balance
sheet date. Additional procedures are generally limited to testing for compliance with specific and general
conditions associated with any federal and/or state financial assistance programs to enable us to express
assurance on the control systems and program compliance, as applicable.
H. PRICE PROPOSAL
The Price Proposal Form is included in Appendix C.
C�3A Gard �s&owf &Atkinsn,PA.
t� e CerLter of Good Ziv
City of Ocoee - Proposal for Auditing Services
APPENDIX A
Peer Review Report — Carter, Belcourt & Atkinson, P.A.
WEAVER
TIDWELL
L.1_.P
CERTIFIED PUBLIC
ACCOUNTANTS
AND CONSULTANTS
FORT ".rs
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Sr,,rr 9nn
,S1-..i.; .-vN,
F II -. ,-'J. i'I;'A
Y,1W-.N. WEAVE RAFIDTID'NELL.007.1
AN INDEPENDENT'-IEIISER OF
BAKER TILLY
INTERNATIONAL
To the Shareholders of
CARTER, BELCOURT & ATKINSON, P.A.
and the Center for Public Company Audit Firms Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice
of Carter, Belcourt & Atkinson, P.A. (the firm) applicable to non -SEC issuers in effect for
the year ended July 31, 2005. The firm has informed us that it did not audit SEC -issuers
for the year ended July 31, 2005. A system of quality control encompasses the firm's
organizational structure and the policies adopted and procedures established to provide it
with reasonable assurance of complying with professional standards. The elements of
quality control are described in the Statements on Quality Control Standards issued by
the American Institute of Certified Public Accountants (the AICPA). The design of the
system, and compliance with it, are the responsibilities of the firm. Our responsibility is to
express an opinion on the design of the system, and the firm's compliance with that
system based on our review.
Our review was conducted in accordance with standards established by the Peer Review
Committee of the Center for Public Company Audit Firms and included procedures to
plan and perform the review that are summarized in the attached description of the peer
review process. Our review would not necessarily disclose all weaknesses in the system
of quality control or all instances of lack of compliance with it since it was based on
selective tests. Because there are inherent limitations in the effectiveness of any system
of quality control, departures from the system may occur and not be detected. Also,
projection of any evaluation of a system of quality control to future periods is subject to
the risk that the system of quality control may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may
deteriorate.
In our opinion, the system of quality control for the accounting and auditing practice
applicable to non -SEC issuers of Carter, Belcourt & Atkinson, P.A. in effect for the year
ended July 31, 2005, has been designed to meet the requirements of the quality control
standards for an accounting and auditing practice established by the AICPA, and was
complied with during the year than ended to provide the firm with reasonable assurance
of complying with professional standards.
wee aj (1/ GGP
WEAVER AND TIDWELL, L.L.P.
Dallas, Texas
November 9, 2005
20
CBA Carter, Belm f £Atkinson, PA.
CERTIFIED PUBLIC ACCOUNTANTS MID BUSINESS ADVISORS
e Gente+ of Good Ltv
.^ ti.. mod'
City of Ocoee - Proposal for Auditing Services
Attachment to the Peer Review Report of Carter, Belcourt & Atkinson, P.A.
Description of the Peer Review Process
Overview
Firms enrolled in the AICPA Center for Public Company Audit Firms (the Center) Peer Review Program
must have their system of quality control periodically reviewed by independent peers. These reviews are
system and compliance oriented with the objective of evaluating whether:
The reviewed firm's system of quality control for its accounting and auditing practice applicable to
non -SEC issuers has been designed to meet the requirements of the Quality Control Standards
established by the AICPA.
The reviewed firm's quality control policies and procedures applicable to non -SEC issuers were
being complied with to provide the firm with reasonable assurance of complying with professional
standards.
A peer review is based upon selective tests and directed at assessing whether the design of and
compliance with the firm's system of quality control for its accounting and auditing practice applicable to
non -SEC issuers provides the firm with reasonable, not absolute, assurance of complying with
professional standards. Consequently, a peer review on the firm's system of quality control is not
intended to, and does not, provide assurance with respect to any individual engagement conducted by
the firm or that none of the financial statements audited by the firm should be restated.
The Center's Peer Review Committee (PRC) establishes and maintains review standards. At regular
meetings and through report evaluation task forces, the PRC considers each peer review, evaluates the
reviewer's competence and performance, and examines every report, letter of comments, and
accompanying response from the reviewed firm that states its corrective action plan before the peer
review is finalized. The Center's staff plays a key role in overseeing the performance of peer reviews
working closely with the peer review teams and the PRC.
Once the PRC accepts the peer review reports, letters of comments, and reviewed firms' responses, they
are maintained in a file available to the public. In some situations, the public file also includes a signed
undertaking by the firm agreeing to specific follow-up action requested by the PRC.
Firms that perform audits or play a substantial role in an audit of one or more SEC issuers, as defined by
the Public Company Accounting Oversight Board (PCAOS), are required to be registered with and have
their accounting and auditing practice applicable to SEC issuers inspected by the PCAOB. The firm did
not audit SEC -issuers for the year ended July 31, 2005.
Planning the Review for the Firm's Accounting and Auditing Practice Applicable to Non -SEC
Issuers
To plan the review of Carter, Belcourt & Atkinson, P.A., we obtained an understanding of (1) the nature
and extent of the firm's accounting and auditing practice, and (2) the design of the firm's system of quality
control sufficient to assess the inherent and control risks implicit in its practice. Inherent risks were
assessed by obtaining an understanding of the firm's practice, such as the industries of its clients and
other factors of complexity in serving those clients, and the organization of the firm's personnel into
practice units. Control risks were assessed by obtaining an understanding of the firm's system of quality
control, including its audit methodology, and monitoring procedures. Assessing control risk is the process
of evaluating the effectiveness of the reviewed firm's quality control system in preventing the performance
of engagements that do not comply with professional standards.
21
CBA c CERTIFIED
Jt
coiter of Good ZIYoe
,
o
City of Ocoee - Proposal for Auditing Services
Performing the Review for the Firm's Accounting and Auditing Practice Applicable to Non -SEC
Issuers
Based on our assessment of the combined level of inherent and control risks, we identified practice units
and selected engagements within those units to test for compliance with the firm's system of quality
control. The engagements selected for review included engagements performed under the Government
Auditing Standards and audits of Employee Benefit Plans. The engagements selected for review
represented a cross-section of the firm's accounting and auditing practice with emphasis on higher -risk
engagements. The engagement reviews included examining working paper files and reports and
interviewing engagement personnel.
The scope of the peer review also included examining selected administrative and personnel files to
determine compliance with the firm's policies and procedures for the elements of quality control pertaining
to independence, integrity, and objectivity; personnel management; and acceptance and continuance of
clients and engagements. Prior to concluding the review, we reassessed the adequacy of scope and
conducted an exit conference with firm management to discuss our findings and recommendations.
22
CBA Carter B,elroc�rt F�Atkms� ADPA.
Jot
nter of Good City of Ocoee - Proposal for Auditing Services 23
APPENDIX B — RESUMES
The resumes for the proposed engagement team members are located on the following pages. The resumes
detail educational background as well as educational level, years of experience, professional affiliations and client
names for governmental audits.
(C-BX)D" Belwwf &Atkinson, PA.
Center of Good Lip.
City of Ocoee - Proposal for Auditing Services
Deborah P. Garringer, CPA*, CFST
Shareholder
Carter, Belcourt & Atkinson, P.A.
24
Deborah has over 18 years of public accounting experience. She joined CBA in June 1993
with a merger of firms. Deborah has worked on municipalities her entire career. She was
licensed as a Florida Certified Public Accountant in September 1988.
Listed below is a representative sample of governmental and not -for -profit audits in which
Deborah has participated:
• Children's Board of Hillsborough County
• Citrus Cars of Polk County
• City of Lakeland, Florida
• City of Lakeland Department of Electric and Water Utilities
• Florida Department of Health
• Florida Rural Legal Services, Inc.
• Healthy Start Coalition, Hardee, Highlands, and Polk Counties
• Hillsborough County Hospital Authority
• Lakeland Area Mass Transit District
• Pasco Hernando Jobs & Education Partnership Regional Board, Inc.
• Polk County Association for Handicapped Citizens, Inc.
• Polk County, Florida
• Polk County Workforce Development Board, Inc.
• USA Water Ski Association, Inc.
Education
Master of Accountancy - University of South Florida
Bachelor of Science in Business Administration - University of South Florida
Professional
American Institute of Certified Public Accountants - Member
Florida Institute of Certified Public Accountants:
• Member
• Polk County Chapter - President 1994-1995, Board Member 1995-1999
• State Tax Section - Chairman 1995-1996, Member 1991-2007
• Board of Governors - Former Member -At -Large
• Nominations Committee - Former Member
• Certified Florida Sales and Use Tax (CFST) designation
• Certified Audit Program Task Force - Member
• Not -for -Profit Task Force - Member
Florida Government Finance Officers Association (FGFOA) - Member
PKF North American Network, Leadership Development Program - Graduate
Polk County School Board - Audit Committee Member
*CPA designation regulated by the State of Florida
(C—BA--)CWfq11BB&vwf &SomPA
City of Ocoee - Proposal for Auditing Services
TOO Sizemore Lehman, CPA*, CFST
Shareholder and Client Service Team Leader
Carter, Belcourt & Atkinson, P.A.
25
Tori has been in public accounting for almost 14 years joining CBA in August 1993. She has
practiced in the area of governmental and not -for -profit auditing for over eight years. Tori is
the client services team leader for the governmental and not -for -profit industry team. She
was licensed as a Florida Certified Public Accountant in September 1995.
Listed below is a representative sample of governmental and not -for -profit engagements in
which Tori has participated:
• Children's Board of Hillsborough County
• Cigar Family Charitable Foundation, Inc.
• Citrus Cars of Polk County
• City of Lakeland, Florida
• City of Temple Terrace
• Florida Rural Legal Services, Inc.
• Healthy Start Coalition, Hardee, Highlands,
and Polk Counties
• Hillsborough County Hospital Authority
• Lakeland Area Chamber Foundation, Inc.
• Lakeland Area Chamber of Commerce, Inc.
• Lakeland Area Mass Transit District
• Learning Resource Center, Inc.
• Lowry Park Zoo Endowment Foundation, Inc.
• Pasco Hernando Jobs & Education
Partnership Regional Board, Inc.
• Polk County Association for Handicapped
Citizens, Inc.
• Polk County Workforce Development Board,
Inc.
• Sun'n Fun Fly -In, Inc.
• Sun 'n Fun Foundation, Inc.
• The Florida United Methodist Foundation, Inc.
• The Tampa Yacht and Country Club
• USA Water Ski Association, Inc.
Education
Bachelor of Science in Business Administration - Stetson University
Professional
American Institute of Certified Public Accountants - Member
Florida Institute of Certified Public Accountants
• Member
• State and Local Government Section - Member
• Certified Florida Sales and Use Tax (CFST) designation
PKF North American Network
• Leadership Development Program - Graduate
Not -for -Profit Committee - Member
*CPA designation regulated by the State of Florida
cB�i cBelcourt�F�Atkzns��PA.
City of Ocoee - Proposal for Auditing Services
I Edward Grossman, CPA*, CFE, CMA
Shareholder and Chief Professional Standards Officer
Carter, Belcourt & Atkinson, P.A.
26
Ed has over 24 years of public accounting experience joining CBA in May 1983. Serving
as the Chief Professional Standards Officer, he has overall responsibility for all accounting
and assurance service engagements. Ed is the primary technical reviewer for all attest
engagements of the firm. He also conducts peer reviews of other CPA firms.
Listed below is a representative sample of governmental and not -for -profit audits in
which Ed has participated:
• Children's Board of Hillsborough County
• Citrus Cars of Polk County
• City of Lakeland, Florida
• Florida Rural Legal Services, Inc.
• Healthy Start Coalition, Hardee, Highlands,
and Polk Counties
• Hillsborough County Hospital Authority
• Lakeland Area Chamber Foundation, Inc.
• Lakeland Area Chamber of Commerce, Inc.
• Lakeland Area Mass Transit District
• Learning Resource Center
• Lowry Park Zoo Endowment Foundation, Inc.
• Pasco Hernando Jobs & Education
Partnership Regional Board, Inc.
• Polk County Association for Handicapped
Citizens, Inc.
• Polk County Workforce Development Board,
Inc.
• Sun'n Fun Fly -In, Inc.
• Sun 'n Fun Foundation, Inc.
• Tampa Yacht and Country Club
• USA Water Ski Association, Inc.
Education
Bachelor of Science in Accounting (Summa Cum Laude) - Florida Southern College
Professional
American Institute of Certified Public Accountants:
• Member
• Technology Issues Task Force of the Auditing Standards Board
• PCPS Technical Issues Committee - Past Member
• 1998 National Accounting & Auditing Technical Symposium - Steering Committee and Speaker
Florida Institute of Certified Public Accountants:
• Member
• Committee on Peer Review Acceptance - Vice Chairman
• Peer Review Task Force - Member
• State and Local Government Section - Member
• Committee on Accounting Principles and Auditing Standards - Past Member
• Florida Accounting and Business Expo - Speaker in 2004, 2005 and 2006
• 19th and 20th Annual Accounting Shows - Speaker
• Outstanding Discussion Leader - 2005 and 2006
Association of Certified Fraud Examiners - Member
• Certified Fraud Examiner (CFE) designation received 1994
CPA Software News - Editorial Advisory Board Member
Institute of Management Accountants:
• Member - Polk County Chapter
• Certified Management Accountant (CMA) designation received 1988
PKF North American Network - Accounting and Auditing Committee: Former Vice Chairman
*CPA designation regulated by the State of Florida
(C-BA--)QrW1 B&owt &Atkinson, PA.
CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS
City of Ocoee - Proposal for Auditing Services
Gerald L. Appleby
Audit Manager
Carter, Belcourt & Atkinson, P.A.
27
Gerry has been in the public accounting field for over five years with experience in auditing
of various profit, non-profit and governmental entities. He has also worked for over six years
as a controller for a manufacturer and newspaper company.
Before joining CBA in August 2006, Gerry participated on county government audits and
many non-profit audits with single audit requirements at another CPA Firm.
Listed below is a representative sample of governmental engagements in which Gerry has participated:
• ACCORD
• ACS D I
• Arts Council
• Cattaraugus Community Action
• Cattaraugus County
• Cazenovia Recovery Systems
• Center City Neighborhood Development
Corporation
• City of Lakeland, Florida
• Enterprise Charter School
• Genessee Valley Improvement Corporation
• Kingston County
• Lovejoy District Neighborhood Redevelopment
Corporation
• Rev. Bennett Smith Family Life Center
• St. John's Baptist Church
• Steuben County
• Ulster County
Education
Bachelor of Business Administration in Accounting - Niagara University, Lewiston, New York
Professional
American Institute of Certified Public Accountants - Member
Florida Institute of Certified Public Accountants - Member
(C-B--A-)carter,.,..r�tU&�1tkBs�on PA
Citv of Ocoee - Proposal for Auditing Services
Trisha Floyd
Staff Accountant
Carter, Belcourt & Atkinson, P.A.
28
Trisha served as an intern beginning in September 2005 while attending college. She joined CBA as a full-time
staff accountant in May 2006.
Listed below is a representative sample of governmental and not -for -profit engagements in which Trisha has
participated:
• City of Lakeland, Florida
• City of Lakeland Department of Electric and Water Utilities
• Healthy Start Coalition, Hardee, Highlands, and Polk Counties
• Lakeland Area Mass Transit District
• Learning Resource Center, Inc.
• Lowry Park Zoo Endowment Foundation, Inc.
• Pasco Hernando Jobs & Education Partnership Regional Board, Inc.
Education
Bachelor of Science in Accountancy - University of South Florida
Professional
Florida Institute of Certified Public Accountants - Member
Carter, Bdcourt &Atkinson, PA.
CERTr. PUBLIC AOCOUNiANfS AND BUSINESS ADVISORS
eCentei of Good Lip•
I
Citv of Ocoee - Proposal for Auditing Services
APPENDIX C - FORMS
The required forms are included on the following pages:
Price Proposal
Company Information/Signature Sheet
Page 12
29
(C-WA7)C4t1q,s &onPA
CERTIFIED ACCOUNTANTS ,
PRICE PROPOSAL FORM
FRP #07-004 AUDITING SERVICES
TOTAL ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED
IN RFP#07-004 FOR FISCAL YEARS ENDING 2007, 2008, 2009:
$43,500 for fiscal year ending September 30, 2007
Forty-three thousand, five hundred dollars & no cents
$47,850 annually for fiscal year ending September 30, 2008 **
$49,285 annually for fiscal year ending September 30, 2009
(A renewal option hor an additional two years may be negotiated).
TOTAL ANNUAL PRICE PROPOSAL FOR PREPARATION OF THE COMPREHENSIVE
ANNUAL FINANCIAL REPORT (CAFR), IF REQUIRED:
5 000.00 annually
Five thousand dollars & no cents
August 27, 2008
Date
Carter, Belcourt & Atkinson, P.A.
Company Name
No. AD 0009178
License Number
Deborah P. Garringer
Authorized Officer (print)
U'
Authorized Signature
RFP #07-004
The 10 % fee increase from FY 2007 to FY 2008 for the City of Ocoee financial audits reflects the new
Auditing Standards issued by the American Institute of Certified Public Accounts that are effective for
the City's September 30, 2008 year end. Information related to these standards can be found on the
following pages.
New Auditing Standards
SAS No. 104 - 111 - Risk Assessment Standards. These Statements represent the Auditing Standards
Board's ongoing efforts to develop stronger and more definitive auditing standards that are intended to enhance
auditor performance and thereby improve audit effectiveness.
SAS No. 0, .. .
NEW
The exercise of due While exercising due professional care, the auditor must plan and perform the audit
audit evidence so that audit risk will be limited to a
professional care allows to obtain sufficient appropriate
the auditor to obtain low level that is, in his or her professional judgment, appropriate for expressing an
reasonable assurance opinion on the financial statements. The high, but not absolute, level of assurance
that is intended to be obtained by the auditor is expressed in the auditor's report as
that the financial
statements are free of obtaining reasonable assurance about whether the financial statements are free of
material misstatement, material misstatement (whether caused by error or fraud).
whether caused by error
or fraud.
Certain preliminary engagement activities are now required to be performed,
including specific procedures regarding the continuance of the client relationship
and the specific audit engagement and an evaluation of the auditor's compliance
with ethical requirements, including independence.
Five audit assertions.
13 assertions, categorized into three categories.
Assertions about classes of transactions and events for the period under audit:
- Existence.
a.
- Completeness.
- Occurrence.
- Rights and
- Completeness.
Obligations.
- Accuracy.
- Valuation.
- Cutoff.
- Disclosure.
- Classification.
b. Assertions about account balances at the period end:
- Existence.
- Rights and obligations.
- Completeness.
- Valuation and allocation.
c. Assertions about presentation and disclosure:
- Occurrence and rights and obligations.
- Completeness.
- Classification and understandability.
- Accuracy and valuation.
An extended discussion of the audit team regarding the susceptibility of the
financial statements to material misstatements and their consideration of other
factors, such as the needed involvement of personnel possessing specialized skills,
is required. Key members of the audit team, including the auditor with final
responsibility, should be involved in the discussion as well as others who may have
a need to participate. For example, the auditor or the professional possessing
information technology or other specialized skills may need to participate in the
discussion.
SAS • 04 Assessment Standards
OLD
NEW
A sufficient
The auditor must obtain a sufficient understanding of the entity and its environment,
understanding of
including its internal control to assess the risk of material misstatement of the
internal control is to be
financial statements whether due to error or fraud and to design the nature, timing,
obtained to plan the
and extent of further audit procedures. This required understanding includes:
audit and to determine
- A mandatory evaluation of the design and implementation of controls in all five
the nature, timing, and
components of internal control (Control Environment, Risk Assessment, Control,
extent of tests to be
Activities, Information and Communication and Monitoring).
performed.
- Inquiry alone is not enough to assess the design and implementation of a
control.
- The Period End Financial Reporting Process should be included.
- Risk assessment should be made at the overall financial statement level and at
the relevant assertion level.
Identify and respond to significant risks that require special audit attention (which
arise on most audits). To the extent the auditor has not already done so, the
auditor should evaluate the design of the entity's related controls and determine
whether they have been implemented and perform substantive procedures that are
specifically responsive to that risk.
Because risks relating to significant, nonroutine or judgmental matters are often
less likely to be subject to routine controls, the auditor's understanding of whether
the entity has designed and implemented controls for such significant risks includes
whether and how management responds to the risks and whether control activities
such as a review of assumptions by senior management or experts, formal
processes for estimations, or approval by those charged with governance have
been implemented to address the risks. For example, where there are nonrecurring
events such as the receipt of notice of a significant lawsuit, consideration of the
entity's response will include such matters as whether it has been referred to
appropriate experts (such as internal or external legal counsel), whether an
assessment has been made of the potential effect, and how it is proposed that the
circumstances are to be disclosed in the financial statements.
Identify and respond to risks for which substantive procedures alone do not provide
sufficient appropriate audit evidence.
Explicitly link assessed risks and the nature, timing and extent of audit procedures
performed in response to those risks.
Regardless of the audit approach selected, the auditor should design and perform
substantive procedures for all relevant assertions related to each material class of
transactions, account balance and disclosure.
When determining a
An auditor who applies statistical sampling uses tables or formulas to compute
sample size, an auditor
sample size .... An auditor who applies nonstatistical sampling uses professional
applies professional
judgment ... in determining the appropriate sample size. Ordinarily, this would result
judgment ... in
in a sample size comparable to the sample size resulting from an efficient and
determining the
effectively designed statistical sample, considering the same sampling parameters.
appropriate sample size.
The auditor's substantive procedures should include examining material journal
entries and other adjustments made during the course of preparing the financial
statements.
RFP #07-004 COMPANY INFORMATION/SIGNATURE SHEET
FAILURE TO COMPLY WITH THESE RFP INSTRUCTIONS WILL RESULT IN DISQUALIFICATION OF
YOUR PROPOSAL, PLEASE SIGN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND
ALL RFP INSTRUCTIONS AND THAT THE PRICES REFLECTED ON THE "SCOPE OF SERVICES/PRICE
PROPOSAL FORM" ARE ACCURATE AND WITHOUT COLLUSION,
Carter, Belcourt & Atkinson, P.A. 813-223-1316
COMPANY NAME TELEPHONE (INCLUDE AREA CODE)
813-229-5952
FAX (INCLUDE AREA CODE)
deborah.garrinc,Ler@cbanet.com
E-MAIL ADDRESS
IF REMITTANCE ADDRESS IS DIFFERENT
AUTHORIZED SIGNATURE anual) FROM PURCHASE ORDER ADDRESS,
PLEASE INDICATE BELOW:
Deborah P. Garringer, Shareholder
NAME/TITLE (PLEASE PRINT)
101 East Kennedy Boulevard, Suite 1250
STREET ADDRESS
Tampa, FL 33602-5197
CITY STATE ZIP
FEDERALID# 59-1786963
Individual _Corporation Partnership Other (Specify)
ff
Sworn to and subscribed before me this day of August , 20 07.
Personally Known ✓ or
(Type of Identification)
RFP ##07-004
Notary Public - State of Florida
County of Polk
Signature o Notary Fublic
PEGGY J. HICKSON
MY COMMISSION # DD 421631
_o EXPIRES: May 14, 2009
Bonded Th. Nctery Public Underwriters
2M-T // `cils0/�
Printed; typed or stamped
Commissioned name of Notary Public
W
11. INSURANCE TERMS & CONDITIONS:
Proof of Professional Liability Insurance: Provide a current insurance
certificate providing proof of Professional Liability Insurance. The successful
Respondent shall be required to provide evidence of both General (Public &
Property) Liability and Professional Liability Insurance in the form of a
certificate of insurance issued on behalf of the City of Ocoee by companies
acceptable to the City at the following minimum limits and coverage's with
deductible amounts acceptable to the city: I
.
Comprehensive General Liability Insurance: $1,000,000.00
(The City of Ocoee is to be named as an additional insured)
Professional Liability Insurance: $1,000,000.00
12. SUMMARY OF LITIGATION:
Provide a summary of any litigation, claim(s), bid or contract dispute(s) filed
by or against the proposer in the past five (5) years which is related to the
services that the proposer provides in the regular course of business. The
summary shall state the nature of. the litigation, claim, or contact dispute, a
brief description of the case, the outcome or projected outcome, and the
monetary amounts involved. If none, please so state.
(Attach additional sheets if necessary)
(tartar. Belco in & Atkinson P.A. has had no litigation claim bid or contract dispute by or against us.
in the past five (5) years related to the services provided in our regular course of business.
13. ACKNOWLEDGMENT OF ADDENDA:
Proposer acknowledges receipt of the following addenda:
No. one (1) _
No.
No..
Dated August 24, 2007 .
Dated
Dated
RFP #07-004 12
I
Table of Contents
Title Page
Table of Contents
Transmittal Letter
Independence..................................................................................................................................................
2
License to Practice in the State of Florida................................................................................................. 3
FirmQualifications........................................................................................................................................ 4
Overview................................................................................................................................................................................4
GovernmentServices Group.................................................................................................................................................5
QualityControl.......................................................................................................................................................................5
Federaland State Desk Reviews...........................................................................................................................................6
Litigation/Claims.....................................................................................................................................................................6
ContinuingProfessional Education........................................................................................................................................6
Accounting and Audit Experience with Local Governments..................................................................................................8
LocalReferences.................................................................................................................................................................10
BondExperience..................................................................................................................................................................12
SingleAudit Experience.......................................................................................................................................................12
ManagementAdvisory Services..........................................................................................................................................12
PersonnelQualifications.............................................................................................................................13
ExceptionalClient Service...................................................................................................................................................13
TeamOrganization..............................................................................................................................................................13
Qualificationsof Assigned Personnel..................................................................................................................................14
Engagement Team Continuity and Turnover.......................................................................................................................15
QualityAssurance................................................................................................................................................................16
AuditApproach.............................................................................................................................................17
Overview..............................................................................................................................................................................17
Segmentation.......................................................................................................................................................................17
StatisticalSampling..............................................................................................................................................................20
Useof EDP Software...........................................................................................................................................................20
AnalyticalProcedures..........................................................................................................................................................22
Gaining an Understanding of the City's Internal Control Structure
......................................................................................23
DeterminingLaws and Regulations.....................................................................................................................................23
ComplianceAudit Samples..................................................................................................................................................24
Approachto Management Letters.......................................................................................................................................24
Experience with the GFOA Certificate of Achievement for Excellence
in Financial Reporting............................................25
Identification of Potential Audit Issues.................................................................................................................................25
PriceProposal...............................................................................................................................................26
Appendix A. Client Service Team Resumes
Appendix B. Peer Review Letter
Appendix C. Required Forms/Drug-Free Workplace Statement
Appendix D. Insurance Certificates
Note: Should CB&H provide audit services on behalf of the City, all working papers and reports will be retained at the expense of CB&H
for a minimum of five years after release of the auditors' reports, unless CB&H is notified by the City of the need to extend the retention
period.
Cherry, Bekaert & Holland, L.L.P.
The Firm of Choice. www.cbh.com
800 North Magnolia Avenue — Suite 1300
Orlando, Florida 32803
phone 407.423.7911
fax 407.841.4887
August 28, 2007
City of Ocoee
Attn: Joyce Tolbert, Purchasing Agent
150 North Lakeshore Drive
Ocoee, Florida 34761-2258
Dear Members of the Auditor Selection Committee:
Cherry, Bekaert & Holland, L.L.P. ("CB&H") is pleased to submit this proposal to provide professional auditing
services to the City of Ocoee (the "City"). This proposal will remain in effect for ninety (90) days and is a firm and
irrevocable offer for the engagement period.
CB&H is the second largest accounting firm based in the Southeast United States and ranks among the twenty-five
largest in the United States. Our services for the City will be led by our Orlando office, which is located at 800 N.
-� Magnolia Avenue, Suite 1300, Orlando, FL 32803. The CB&H Orlando office includes a personnel complement of
twenty, with approximately 85% services devoted to the public sector. We are highly specialized in matters
relevant to the City and we believe our government professional staff complement to be the largest of any firm in
the area.
We understand that the City wishes a qualified independent public accounting firm to audit its financial statements
for a period of three (3) years starting with the fiscal year ending September 30, 2007, with the option to renew for
an additional two (2) years. The audits shall be conducted in accordance with the auditing standards generally
accepted in the United States of America, the standards for financial audits set forth in the U.S. General
Accounting Office's (GAO) Government Auditing Standards, and, as applicable, the provisions of the Federal and
State Single Audit Acts and U.S. Office of Management and Budget (OMB) Circular A-133, Audits of State and
Local Governments. We understand the intricacies of working under all of these standards and have developed an
efficient and effective approach to auditing the City. Our plan will include adherence to the Time Requirements in
section IV of the Request for Proposal and meeting the milestones therein within the required timeframe.
Outlined in this proposal are key factors that distinguish CB&H from other providers of government auditing
services. Among these factors are the experience level and expertise of our client service team, knowledge and
experience of the City's business and accounting and auditing requirements, our firm -wide and local focus on
government services and our demonstrated commitment to maintaining a high level of service. Please feel free to
contact Mr. Ronald A. Conrad as an authorized firm representative, at (407) 423-7911 should you have any
questions regarding this proposal.
Sincerely,
CHERRY, BEKAERT & HOLLAND, L.L.P.
BAKER TILLY
INTERNATIONAL
Proposal to Serve the City of Ocoee; F1orlda '`
Independence
Independence is a key topic for consideration by every organization affected by or having authority over the
accounting profession. CB&H understands the importance of auditor independence, and maintains strict policies
designed to ensure our independence on all engagements. We evaluate the implications of advisory services on
independence, both in fact and in appearance. We communicate to our clients all conclusions with respect to the
independence at the beginning and end of each engagement.
It is the policy of CB&H that all professional personnel be familiar with and adhere to the independence, integrity,
and objectivity rules, regulations, interpretations, and rulings of the American Institute of Certified Public
Accountants (AICPA), the various state boards of accountancy and state CPA societies, relevant statutes, and
applicable regulatory agencies. In this regard, any transaction, event, circumstance or action that would impair the
firm's independence or violates its integrity and objectivity policy on a compilation, review, audit or attestation
(including forecast and projection) engagement is prohibited. In addition, all professionals —from partner to staff
auditor —are required to sign affidavits attesting to their independence each year.
CB&H's Accounting and Auditing Manual contains detailed policies related to maintaining independence. These
l policies are at least as restrictive as the most stringent policies adopted by the AICPA, the various state boards of
j accountancy and state CPA societies, relevant statutes and applicable regulatory agencies. Engagement team
members are required to consider any possible situations where independence may be impaired during the
acceptance or continuance process and if any arise during the performance of the engagement.
CB&H expressly affirms that it is independent of the City as defined by auditing standards generally accepted in the
United States of America and the standards for financial audits set forth in the Government Auditing Standards
issued by the Comptroller General of the United States. CB&H has not in the past five years had any professional
relationship with the City.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 2
Proposal t ' Serve the`City of 0coee;'Florida
License to Practice in the State of Florida
Cherry, Bekaert & Holland, L.L.P., and all key supervisory personnel assigned to the audit are appropriately
licensed to practice as certified public accountants in Florida.
Licensee Details
Licensee Information
Name: CHERRY, BEKAERT & HOLLAND LLP (1 unary Marne)
(DOA Name)
Main Address: CHERRY, BEKAi RT & HOLLAND LLP
800 N MAGNOLIA AVE SUITE 1300
ORLANDO Florida 32803
County: ORANGE
License Mailing:
LicenseLocation:.
800 N MAGNOLIA AVE SUITE 1300 .
ORLANDO FL 32803
1 County.
ORANGE
License Information
License Type:
FIRM
Rank:
Firms
1 License Number:
AD0010078
Status:
Current
Licensure Date:
05/02/1978
Expires:
12/31/2007
Special Qualifications Qualification Effective
Partnership
.;.Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 3 J
Proposal to Serve the City of Ocoee, Florida J
Overview
Firm Qualifications
Cherry, Bekaert & Holland, L.L.P. is one of the largest nationally recognized CPA firms
headquartered in the Southeast, with 20 offices in 6 states from Florida to Virginia. Since its
establishment in 1947, CB&H has grown to rank as one of the 25th largest accounting firms in
the nation. We offer the high caliber of personal attention, responsiveness and accessibility our
clients expect and deserve - coupled with resources that can satisfy their needs.
CB&H is made up of a broad network of professionals offering a wide range of quality services. CB&H has been in
business for 60 years and, today, the firm is made up of a broad network of professionals offering a wide range of
quality services to over 25,000 clients. Government represents the largest segment of these services, attributed
directly to our strong commitment to our people and our clients.
Our growing reputation, particularly in serving government clients, is founded on our philosophy of providing high
caliber personnel on our engagements, including a high level of partner and manager involvement. For the City,
this means a high level of participation by CB&H partners and managers with extensive government auditing and
accounting expertise. It also means local professionals serving the City will be supported by a high level of
professionals focused on the City's business.
an independent member of CB&H is an independent member of Baker Tilly International, a global alliance of
BAKE R T I L LY more than 100 premier accounting and consulting practices focused on serving the
INTERNATIONAL global needs of growing enterprises. As the 10th largest network in the world,
Baker Tilly International has offices in more than 60 countries with a staff of over
16,000. CB&H is a founding member of this alliance, which offers a powerful fusion of local expertise with global
reach. Baker Tilly International members — all prominent practices in their home markets — are skilled at helping
enterprises compete effectively in the global arena.
Florida Practice
CB&H has served the Central Florida community for more than 30 years, with such notable
clients as Orange County, Martin County, Charlotte County, Monroe County, Sarasota County,
the District School Board of Osceola County, the District School Board of Pasco County, the
District School Board of Collier County, the District School Board of Seminole County, the
District School Board of St. Lucie County, Rollins College, Florida Virtual Schools, LYNX,
Orange County Housing -Finance Authority, Orlando -Orange County Expressway Authority, City
of Sanford, Haines City, City of Stuart, City of Pinellas Park, City of Clearwater and City of Ft. Myers. As indicated
by clients listed above, our practice is highly concentrated on serving government organizations throughout the
year, and our local professionals are very specialized in this area.
The principal office responsible for the City's engagement will be the Orlando office. Located centrally in downtown
Orlando, this office represents the largest government practice in our firm and includes a significant concentration
of highly knowledgeable government professionals, including the leadership of the Florida practice.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 4
Proposal to'Se'rne the City of Ocoee, Florida J
Bekaert & Holland
St. Petersburg
Practice
FloridaCherry,
Tampa
111 Second Avenue NE, Suite 200
601 S. Harbour Island Boulevard, Suite 200
St. Petersburg, Florida 33701
Tampa, Florida 33602
727 822-8811
813 251-1010
Orlando
West Palm Beach
800 North Magnolia Avenue, Suite 1300
One Clearlake Centre — 250 Australian Avenue South, Suite 1201
Orlando, Florida 32803
West Palm Beach, Florida 33401
407 423-7911
561 835-8352
Resources
As one of the largest CPA firms based in the Southeast United States, CB&H provides a unique
-, alternative to other firms. Primary reasons many of our public sector clients have chosen CB&H
;. to be their auditor and business advisor include our firm's focus on serving the government sector
and the extensive size and scope of our industry practice. Our clients appreciate the ability to
access the level of resources and capabilities of a national firm while enjoying the benefits of
direct partner involvement, staff continuity, communication, responsiveness, and tailored,
streamlined service plans that are the hallmarks of CB&H service.
An organization like yours requires a host of talents and experience to meet its changing accounting and advisory
needs. Many local firms cannot provide the service, skills, capabilities and experience you require; however,
CB&H, as a larger firm, has a variety of resources to meet your needs. Our resources also enable us to take a
national view of your operational and financial aspects and to provide proactive ideas and specialized expertise.
Government Services Group
For CB&H, the coordination and allocation of resources and talents is accomplished
through the Government Services Group (GSG), the fastest growing segment and most
o • i significant concentration of our firm. The GSG is responsible for assuring seamless service
M6
Government Services delivery, quality control and continuing education for government engagements throughout
the Firm. The commitment of the Firm to government service is demonstrated by our
sustained growth in this practice area as well as the depth of experience of personnel in this group. As a result of
this commitment, our personnel have extensive knowledge of the methods and techniques applicable to
j government auditing and have applied this knowledge successfully for many clients.
The Firm is committed to provide varied auditing and consulting services to governments and authorities. CB&H
has well over 100 professionals who audit approximately 150 local governments, authorities and public agencies
throughout the Southeastern United States, including approximately 40 government professionals in Florida. A
partial list of government audit clients is provided later in this proposal.
Quality Control
CB&H has passed, without exception, all peer reviews conducted under the auspices of the AICPA. A copy of our
most recent peer review report is included as Appendix B. The review included a number of specific government
engagements.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 5
Proposal to Serve the City of Ocoee, Florida',:J
CB&H is a member of the AICPA's SEC Practice Section and Private Companies Practice Section (PCPS) of the
Division for CPA Firms and practices under the AICPA recognized quality control program. Selected CB&H
professionals are approved by the AICPA to perform peer review, quality assurance review and consulting review
of other CPA firms' quality assurance programs. CB&H is a member firm of the PCAOB.
Federal and State Desk Reviews
CB&H has successfully complied with all federal and state desk and field reviews in the last three years. There has
been no disciplinary action taken or pending against the Firm in the last three years that will adversely affect our
ability to serve the City.
Litigation/Claims
There has been no litigation taken or pending against CB&H in the last five years with State of Florida regulatory
bodies, including the Board of Accountancy, or national/state professional organizations.
We have had minimal claims for which costs were covered by insurance. The nature of claims was remuneration
for alleged audit or tax issues, none of which related to our government services.
Continuing Professional Education
We consider training of CB&H professionals to be extremely important to provide the highest quality of service to
our clients. We regularly have training on governmental topics and ensure our professionals are Yellow Book
qualified. Ron Conrad and certain other select professionals within CB&H conduct training sessions on
j government topics for CB&H professionals at various locations each year. This is complemented by training
J sessions throughout the year pertaining to specific needs. Our firm's public sector focus also includes government
conference calls among our firm's public sector leaders every two weeks to discuss issues of importance for
dissemination to other office professionals. This unique program assists in our information sharing and ensures
our professionals are current on issues of significance to our governmental clients.
In addition to CB&H sponsored training sessions, CB&H professionals attend and participate in government
training sessions sponsored by professional associations such as the Florida Government Finance Officers
Association, Central Florida Government Finance Officers Association, Financial Association of School Business
Officials and the Florida Institute of Certified Public Accountants.
All of our local professionals receive government training, as required by Government Auditing Standards.
To support and cultivate our ability to serve our governmental clients, CB&H sponsors a number of professional
training opportunities for our audit staff as well as our clients. In addition, our proposed engagement partner for the
City was a featured speaker for the 2006 Florida Government Finance Officers Association Annual Conference, is
the lead speaker for the third consecutive year on government matters for the University of Central Florida Annual
Accounting Conference, and is a featured speaker for the Central Florida Chapter of the Florida Government
Finance Officers Association and FICPA.
6
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. Www cbh.com : J
I
Proposal to Serve the City of Ocoee, Florida
CB&H leaders and partners in charge of industry practice areas maintain vital links to policy -making bodies in
public accounting. CB&H personnel committee assignments and industry associations include:
• Government Finance Officers Association
• Florida Government Finance Officers Association
Central Florida Government Finance Officers Association
• Accounting Standards Executive Committee
• AICPA Professional Ethics Committee
AICPA Auditing Standards Board
• AICPA Accounting and Review Services Committee
The President's Council on Integrity and Efficiency and its Standards Subcommittee
AICPA Technical Issues Committee, Private Companies Practice Section
AICPA Tax Division and its Individual Taxation Subcommittee
AICPA SEC Practice Section Executive Committee
AICPA Accounting Practice Committee
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 7
Proposal to Serve the City'of Ocoee, Florida J
Accounting and Audit Experience with Local Governments
CB&H is committed to providing auditing and consulting services to governmental organizations. We audit
approximately 150 local governments, authorities and public agencies throughout the Southeastern U.S. As a
result, we have extensive understanding of Government Auditing Standards. We also have a thorough knowledge
of methods and techniques applicable to government auditing. Our ability to apply this knowledge is demonstrated
by our extensive list of government clients, as well as by our clients' satisfaction with our work. A representative
listing of government entities we have served over the last five years is as follows.
Cities and Towns
City of Augusta, GA
City of Clearwater, FL
City of Durham, NC
City of Fayetteville, NC
City of Ft. Myers, FL
City of Greenville, NC
City of Haines City, FL
City of Largo, FL
City of Manassas, VA
City of Newport News, VA
City of Portsmouth, VA
City of Sanford, FL
City of Stuart, FL
City of Suffolk, VA
Town of Warm Springs, GA
Town of Cary, NC
Town of Culpepper, VA
Town of Spring Lake, NC
Authorities, Commissions and Agencies
Appalachian Electric Cooperative
City of Atlanta / Fulton County Recreation Authority, GA
City of Augusta Water Works, GA
Central Florida Regional Transit Authority, FL
Central Virginia Planning County Commission, VA
Charlotte -Douglas Airport, NC
Chesapeake Redevelopment and Housing Authority, VA
Cleveland County Sanitary District, NC
Columbia County Water & Sewer System, GA
Fayetteville Convention & Visitors Bureau, NC
Fayetteville Public Works Commission, NC
Florida Virtual School
City of Charlotte, NC
City of Douglasville, GA
City of East Point, GA
City of Fredericksburg, VA
City of Greensboro, NC
City of Greenville, SC
City of Hapeville, GA
City of Lincolnton, NC
City of Lumberton, NC
City of Morrow, GA
City of Pinellas Park, FL
City of Raleigh, NC
City of Spartanburg, SC
City of Virginia Beach, VA
City of Wilson, NC
Town of Colonial Beach, VA
Town of Denton, MD
Town of Warrenton, VA
Moore County Airport Commission, NC
Norfolk Redevelopment and Housing Authority, VA
North Carolina Independent Housing Authority
North Carolina Eastern Municipal Power Agency
North Carolina Municipal Power Agency Number 1
Office of the Secretary of State, GA
Orange County Expressway Authority, FL
Qualla Housing Authority, SC
Pitt Greenville Convention and Visitors Bureau, NC
Portsmouth Housing Development Corporation, VA
Raleigh Durham Airport Authority, NC
Randolph Electric Membership Cooperative, NC
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 8
Proposal,to Serve the City, of Ocoee, Florida
Greater Lynchburg Transit Authority, VA
Greensboro Housing Development Partnership, NC
Greenville Utilities Commission, NC
Greer Commission of Public Works, SC
Hartsfield International Airport, GA
Hillsborough Area Rapid Transit, FL
Johnston County Housing Authority, NC
Metropolitan Housing and Community Development, NC
Counties
Aiken County, SC
Amelia County, VA
Augusta -Richmond County Consolidated Government, GA
Charlotte County, FL
Clarke County, VA
Columbia County, GA
Cumberland County, NC
Durham County, NC
Fayette County, GA
Gaston County, NC
Richmond County, GA
Rockingham County, NC
Wake County, NC
School Districts
Amelia County, VA
County of Chapel Hill, NC
Clarke County, VA
Cleveland County Board of Ed., NC
Collier County, FL
Town of Colonial Beach, VA
Columbia County Schools, GA
Escambia County, FL
County of Fredericksburg, VA
Goochland County, VA
King George County, VA
Lancaster County School District, SC
Lee County, FL
Lynchburg County Schools, VA
Mathews County, VA
Richmond County Water/Sewer, GA
Richmond International Airport, VA
Richmond Redevelopment Authority, VA
Sevier County Utility District, TN
Shepperd Memorial Library, NC
State Corporation Commission, VA
State of Florida
Lincoln County, NC
Martin County, FL
Mathews County, VA
Mecklenburg County, NC
Monroe County, FL
Moore County, NC
New Kent County, VA
Orange County, FL
Pickens County, SC
Hanover County, VA
King George County, VA
Sarasota County, FL
York County, VA
New Kent County, VA
Norfolk, VA
Orange County, FL
Osceola County, FL
Pasco County, FL
Pinellas County, FL
Port St. Lucie, FL
Sarasota County, FL
Seminole County, FL
County of Spartanburg School District 4, SC
County of Spartanburg School District 7, SC
Union County Board of Ed., NC
Virginia Beach, VA
Warren County, VA
Wake County, NC
Cherry, Bekaert & Holland, L L P The Firm of Choice. www.cbh.com 9
Proposal to Serve the City; of Ocoee, Florida
Local References
References from current clients served by our Florida practice and our engagement partner are described on the
next page. The experiences we have gained through serving local government clients will enable us to serve you
effectively and cost -efficiently.
°'Cherry, Bekaert &Holland, L.L.P. The Firm of Choice. www.cbh.com 10
Proppsal to Serve the City of Ocoee, Florida '; J
City of Stuart, Florida
• Dorothy Zaharako, Finance Director
• 101 S.W. Flagler Ave., Stuart, FL 34994
772.288.5310
City of Haines City, Florida
• Karl Giddens, Assistant Finance Director
• 502 E. Hinson Ave., Haines City, FL 33844
863.421.9902
City of Sanford, Florida
Puggy Johnson, Accounting Manager
• PO Box 1788, Sanford, FL 32772
• 407.330.5615
_ City of Clearwater, Florida
• Jay Ravins, Assistant Finance Director
100 S. Myrtle Ave., Clearwater, FL 33756
i • 727.562.4533
Orange County, Florida
• Paul Wunderlich, Finance Director
• 400 E. South St. 2nd Floor, Orlando, FL 32801
407.836.5720
Martin County, Florida
Jo Hempel, Accounting Manager
• 2401 SE Monterey Rd., Stuart, FL 34996
• 941.861.7400
Monroe County, Florida
Sandee Carlile, Finance Director
1100 Simonton Street 2-213, Key West, FL 33040
• 305.295.3560
Charlotte County, Florida
• Ann Navan, Finance Director
• 18500 Murdock Circle
• 941.743.1412
Orange County Housing Finance Authority
• Jim Singh, Chief Financial Officer
• 2211 Hillcrest St., Orlando, FL 32803
407.894.0014
Pasco County District School Board
• Olga Swinson, Chief Financial Officer
• 7227 Land O'Lakes Blvd., Land 0' Lakes, FL 34638
• 813.794.2274
Osceola County District School Board
• Bill Collins, Asst. Superintendent Business and Fiscal Services
• 817 Bill Beck Blvd., Kissimmee, FL 34744
407.870.4600
Lee County School District
• Greta Campbell, Director - Financial Accounting
• 2055 Central Ave., Fort Myers, FL 33901
239.337.8229
Collier County District School Board
• Robert Spencer, Executive Director of Financial Services
• 5775 Osceola Trail, Naples, FL 34109
• 239.337.0058
School Board of Sarasota County
Carrie Hannabass, Treasurer - Financial Services
• 1960 Landings Blvd., Sarasota, FL 34291
• 941.927.9000
Escambia County School District
Barbara Linker, Asst. Superintendent Finance and Bus. Services
215 W. Garden St., Pensacola, FL 32501
• 850,469.6284
Seminole County District School Board -School Activity Funds
• Rosh Khatri
400 E. Lake Mary Blvd., Sanford, FL 32773
• 407.320.0052
International Drive Master Transit and Improvement District
• Luann Brooks, Executive Director
• 7081 Grand National Dr. Ste. 105, Orlando, FL 32819
• 407.248.9590
Central Florida Regional Transportation Authority (LYNX)
• Blanche Sherman, Accounting Manager
• 455 N. Garland Ave., Orlando, FL 32801
407.254.6100
Orange County Library District Orlando -Orange County Expressway Authority
Bob Tessier, Comptroller . Nita Crowder, Controller
• 101 East Central Blvd., Orlando, FL 32801 . 525 S. Magnolia Ave., Orlando, FL 32801
0 407.835.7620 0 407.316.3823
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 11
Proposal to Serve the City of Ocoee, Florida J
Bond Experience
CB&H professionals have worked with numerous bond offerings and arbitrage calculations related to outstanding
debt. Members of the Firm bring specialized expertise in bond issues. CB&H has worked with many governments
with regard to their general obligation bonds and revenue bonds, assisting with numerous bond issuances.
Accordingly, bond credit rating agencies are quite familiar with our name and reputation.
Locally, CB&H has assisted Orange County, Monroe County, Sarasota County, Orlando -Orange County
Expressway Authority and others with significant bond offerings. Locally and firm -wide, our professionals have
considerable experience in this regard.
Single Audit Expertise
In addition to considerable experience with bond offerings, CB&H is one of the largest providers of Single Audit
services for federal and state grants in the area. The vast majority of our public sector clients have Single Audit
requirements and our professionals have considerable focus on grant compliance issues.
Management Advisory Services
We offer a full range of organizational and business advisory services. CB&H's Management Advisory Services
are an integral part of our local office service delivery. Through understanding the City's operations and goals, we
are poised to assist with translating your needs and goals into systematic programs to help you achieve your
objectives. A representative sample of our consulting services, all of which can be performed by or coordinated
through our local office, include the following;
Tax Services:
• Unrelated business income tax issues (UBIT)
• Mergers, acquisitions, reorganizations and liquidations
• Disclosure compliance reviews
• IRS penalty exposure reviews
• State and local tax matters
Business Planning:
• New business start-up assistance
• Economic feasibility studies
• Evaluation of long-range plans
• Business evaluations of mergers
• Disaster planning
• Business Valuation
Information Resource Studies:
• Systems analysis, review and planning
• Review of accounting systems
• Information resource requirements
Financial Management:
• Internal Audit
• Grant compliance assistance
• Subrecipient monitoring
• Financial and profit sharing
• Cash flow and cash management
• Bookkeeping services
• Assistance with budget preparation
• Overhead expenditure budgeting systems
Organization and Personnel:
• Organizational studies and reviews
• Compensation studies and incentive plans
• Executive compensation and recruitment
• Succession management
• Benefit plan structuring
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 12
Proposal to Serve the City of Ocoee; F1orlda J
Personnel Qualifications
Exceptional Client Service
The cornerstone of our firm involves offering trusted and valued business advice that will help our clients succeed.
We are committed to building long-term and respected business relationships.
The City can expect the same level of dedication and commitment from the professionals assigned to assist in this
endeavor. The CB&H professionals chosen to serve the City will provide high quality, cost-effective services. We
will ensure that all services meet applicable federal, state and local and firm standards, and, most importantly, the
City's high standards.
Service Philosophy
CB&H follows a "working partner" approach to client service. This ensures each client frequent and direct access
to the partners who maintain responsibility for the client relationship. In addition, the depth of our CB&H talent pool
has allowed us to dedicate professionals to specific specialty industries. Each engagement team is handpicked for
its balanced understanding of the challenges inherent in the industry and its operations.
Our services extend far beyond conventional accounting and auditing skills. We believe that the effectiveness and
quality of our services are a direct result of the superior skills of our professional staff. We expect our staff to have
exceptional talents in accounting, taxation and management, a creative concern in the business of each client, an
interest for solving difficult problems, and a desire to excel. By requiring the employment of only the most qualified
personnel and training them properly, we have found that our engagements are conducted with a minimal amount
of interruptions to our clients' personnel and their day-to-day operations.
Team Organization
Our organization structure will ensure effective and efficient use of resources, while minimizing disruptions to
ongoing projects at the City. Our organization is streamlined and provides for quality control and lines of
responsibility. We will assign professionals to the team to help ensure that we provide the best client service at the
greatest amount of efficiency. All personnel performing audit procedures will be compliant with the requirements of
Government Auditing Standards (the Yellow Book) and will have thorough understanding of relevant laws and
regulations. The following chart illustrates our leadership team organization structure.
Cherry, Bekaert &.Holland, L.L.P. The Firm of Choice. wwiiv.cbh.com 13
Proposal to`Serve the City of Ocoee, Florida
John Montoro Ron Conrad C.A. Morris
Concurring Review Partner Engagement Partner Second .Local Partner
Sig Byrd Patrick Thomson
IT Manager I I Audit Manager
Carrie Cross I I Stephanie Rosensky
Audit Senior Audit Senior
Qualifications of Assigned Personnel
The selection of our project team reflects our approach to this project and brings together expertise in the areas of
governmental and electronic data processing auditing. Because our client base per partner and manager is much
smaller than that of international accounting firms, our partners and managers are more actively involved with the
performance of audit procedures. The City benefits by having more experienced professionals performing the work
and greater continuity from year to year. The following is a summary of our service team members. Resumes are
located in Appendix A.
Engagement Partner: Ronald Conrad. Ron, partner in charge of our Florida Public Sector Group, will lead our
services to the City. Ron leads our services for numerous cities, counties and other government organizations and
is a lead technical resource within our firm. He regularly speaks on public sector matters and has authored various
books and publications regarding industry developments. He has also served on the GFOA review committee for
the Certificate of Achievement Program for seventeen years and has assisted many government organizations to
receive the Certificate of Achievement for Excellence in Financial Reporting. Prior to joining CB&H in 2001, Ron
had 20 years of prior experience with an international accounting firm, where he led a significant portion of the
government practice and was a firm -designated compliance specialist. Ron is based in our Orlando office.
Second Local Partner: C.A. (Tony) Morris. Tony is the managing partner of our Florida practice and works with
Ron in the Orlando office. Tony is available to assist the City through consultation and presence as needs may
arise. He has spent over 40 years in public accounting, 30 years of which have been with CB&H. His background
and experience, which includes considerable government audit, provides additional depth to provide outstanding
leadership in the conduct of our services.
Concurring Review Partner: John Montoro. John is our firm's lead partner for the government industry and
serves numerous cities and counties in Florida and throughout the firm. He is very much involved with the
Government Finance Officers Association and other government organizations involved in standard setting, serving
on committees and providing the firm's views on various topics. He has approximately 30 years of experience and
is exclusively devoted to government industry matters. John is based in our Richmond office.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 14
■mil ICI Ate.\I i
Proposal to Seroe the` City of Ocoee, Florida
Audit Manager: Patrick Thomson. Patrick has eighteen years of diversified public accounting experience, the
vast majority of which were with Touche Ross & Co in New York City and Deloitte & Touche in Orlando. He
currently serves as our lead audit manager for Orange County, Orange County Library District and the City of
Casselberry Community Redevelopment Agency. Patrick also has considerable audit experience serving the City
of Stuart, Haines City, Sarasota County, Martin County, Monroe County, Orlando Utilities Commission, Orange
County Housing Finance Authority and other government organizations, and has served as Comptroller for the
Osceola County Sheriff and for private sector organizations. Patrick is based in our Orlando office.
Information Technology Manager: Sig Byrd. Sig is an experienced professional with more than thirty five years
in the technology industry. Prior to joining CB&H, Sig utilized several years of technology and management
experience in the performance of technology based consulting engagements in the areas of technology risk
assessment, business continuity, general controls reviews and information technology audits. He also has
experience in systems development, technical support, data center operations, information security, disaster
recovery, change control, technology integration and vendor relations. Sig is based in our North Carolina practice.
Audit Senior: Carrie Cross. Carrie has served the City of Sanford, Orange County, Martin County, LYNX, and
numerous other government organizations. She has led the fieldwork of significant government organizations and
is devoted primarily to the government industry. Carrie is based in our Orlando office.
Audit Senior: Stephanie Rosensky. Stephanie's government audit experience includes the audits of the City of
Haines City, the City of Sanford, Orange County, Monroe County, Orange County Housing Finance Authority,
Orlando -Orange County Expressway Authority, Florida Virtual Schools, and various school districts. Stephanie is
based in our Orlando office.
The knowledge and experience of personnel described above, together with the knowledge and experience of
numerous additional CB&H Orlando audit professionals with government experience, provides CB&H with
considerable depth and flexibility in staffing the audit of the City. In addition, the size of our Firm's government
practice and government audit personnel complement and our more than 90% retention rate of professional
personnel over the past six years provide added assurance that qualified personnel will be available throughout our
tenure as auditors.
Engagement Team Continuity and Turnover
We believe knowledge, efficiency and effectiveness are optimized over time in a client relationship. We, therefore,
strive to maintain continuity in partners and key professionals from beginning to end of an engagement and from
year to year. Our high percentage of partners and managers relative to our overall personnel complement,
particularly compared to large international firms, allows CB&H to utilize significant involvement of our management
team in the performance of our services. This allows our clients to be consistently served by knowledgeable and
experienced professionals.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com > 15
Flori
Proposal to Serve"the City of Ocoee, da J
We assign staff to jobs for continuous years, allowing their knowledge of the client to increase the efficiency of our
team. Staff continuity benefits both the City and CB&H; you gain the support of professionals who truly understand
your environment while CB&H industry -specific expertise is enhanced. The exceptionally high personnel retention
rate of our local practice is a critical factor in contributing to our success in providing continuity for our clients.
Quality Assurance
Professionalism in the accounting industry involves independence, integrity, objectivity and adherence to
professional standards and applicable laws and regulations. This includes a demonstrated will to maintain and
improve the quality of professional services and to withstand all pressures, competitive and other, that compromise
our core values, principles, standards, and quality.
CB&H strives to provide the highest possible quality of service to our clients, to meet our obligations to the public,
and to conform to the standards of our profession. In order to meet these goals, we adhere to policies and
procedures that provide reasonable assurance that every audit, tax, accounting and management advisory
services engagement will be completed in accordance with the high standards of the public, our firm, and most
importantly, our clients.
It is the policy of our Firm that all compilation, review, audit and attestation (including forecast and projection)
engagements be properly planned, performed, supervised, reviewed, documented, and reported upon in
accordance with the requirements of professional standards, regulatory authorities, and the firm.
Our quality control system is monitored in an ongoing basis to provide the firm with reasonable assurance that our
quality control policies and procedures are suitably designed and are being applied effectively. As an integral part
of the monitoring process, our quality control system is inspected annually to determine whether the firm has
complied with its stated quality control policies and procedures.
CB&H engages in a number of measures to help ensure the quality of our work. As described earlier in this
proposal, we participate in external peer reviews. We also have a number of engagement -specific quality control
procedures:
• Concurring Partner Review. An audit partner, not directly involved with the conduct of the audit, reviews all
reports and work performed in selected areas of each engagement before reports are issued.
• Work Paper Review. All client work papers are reviewed by an individual at one level higher than the
preparer.
• Frequent Partner and Manager Interaction. Our partners and managers are heavily involved in all
engagements. This involvement allows the leaders of our firm, who are also leaders in the accounting field, to
monitor the quality of all work being undertaken.
'Cherry, Bekaert &Holland, L.L.P. The Firm of Choice. wwov.cbh.com 16
Proposal to,Serve the City of Ocoee, Florida
Proposed Audit Approach
Overview
The CB&H audit approach is heavily oriented toward involvement of experienced personnel, comprehensive
planning and regular communication. We believe the level of staffing we will provide to the City differentiates
CB&H from other providers of government auditing services. The City can expect long-term continuity among our
engagement team, positive attitudes among professionals that identify the public sector as the focus of our firm,
and on -site partner and manager participation in the conduct of our work.
We believe it is important to ensure technical issues are addressed throughout the year, avoiding uncertainties and
j bottlenecks at year-end. Again, we believe our "working partner" approach to be a benefit to the City in helping to
ensure that any such issues are known and communicated. Ron Conrad has led the audits of numerous cities and
large government organizations, and will utilize his experience, as well as the extensive experience of our
supporting audit team members, to facilitate our efforts.
The transition to CB&H will be greatly facilitated by our knowledge of the City, our knowledge of the City's financial
reporting system and the experience level of professionals we will provide. We will provide a plan of transition that
includes focus on the City's expectations and desires, such as communication, scheduling and timeliness aspects.
As many other Florida government organizations have recently noted, the transition to CB&H is very positive and
painless.
I Our approach will be risk -based, specifically tailored to the City's unique circumstances. Our approach will
encompass internal control procedures at each of the internal control systems on which we will report and will focus
early on ways to assist the City to facilitate the year end closing process. As part of our audit approach, we will
look beyond standard approaches and traditional services for innovative ways to deliver value to your business.
The insight we gain from working with you will continue to generate significant competitive insights and enable us
to identify opportunities to enhance the City's performance.
CB&H is fully prepared and able to meet the City's timeframes. We plan to continue the schedule of timing that has
been customarily employed by the City in prior years, as outlined in the audit schedule provided with this Request
for Proposal. We understand timeliness is an essential condition of our service and we will take appropriate
measures to ensure compliance with those requirements.
Segmentation
Our approach will focus on addressing accounting and auditing issues early, and in assisting the City as necessary
to provide a smooth audit at year-end. We will communicate results of our interim procedures during July and
reassess our audit plan to ensure issues have been addressed timely, staffing is appropriate, and our fieldwork is
performed in a high quality manner.
We will begin our audit with an initial planning meeting to discuss issues, scheduling, expectations and other
relevant issues. We will then formalize a plan that corresponds to the high end of the City's expectations and that
appropriately addresses areas of audit and business risk. Communication aspects regarding audit progress and
accounting and auditing issues will be incorporated in this plan, which will be provided to the City along with a list of
schedules to be prepared during each fiscal year subject to audit.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 17 .
rProp6sal to Serve the City;of Ocoee, Florida
Our work programs will be divided into four segments:
• Segment I: Orientation and planning
• Segment II: Evaluation of internal controls
• Segment III: Interim testing
• Segment IV: Year-end procedures
Segment I: Orientation and Planning
Our work will include the following procedures:
• Meeting with the predecessor auditors and obtaining appropriate prior year information
Reviewing previously issued financial reports and comment letters and supporting work papers
• Familiarizing ourselves with the City's accounting policies and procedures, including the financial and other
management information systems utilized by the City
• Reviewing the City's current year budget, as adopted and revised
1 . Familiarization as to communication aspects and audit and accounting issues related to the engagement
• Assessment of fraud -related communications, inherent risks and control risks
• Meeting with the appropriate City personnel to confirm the timing of our work and review the preparation of
schedules so that disruption of day-to-day operations can be minimized
Performing analytical reviews to determine critical areas and assess risks
Segment II: Evaluation of Internal Controls
Segment II of the audit encompasses developing an understanding of and evaluating system internal controls. This
segment will include:
• A walk-through of significant internal control systems to identify key controls
• Acquiring in-depth knowledge of the EDP equipment, software and systems in use through completion of a
computer control evaluation
• Reviewing for possible areas of exposure in asset protection, custodianship and similar matters
• Determining the maximum reliance we can place on the internal control structure to reduce audit risk (and
accordingly, other audit procedures)
Planning for this segment includes:
• Obtaining excerpts of pertinent sources to determine the laws and regulations that will be subject to testing
• Developing detailed audit programs to test compliance with laws and regulations
• Preparing detailed audit programs based upon the evaluation of internal controls
Cherry, .
Bekaert & Holland, L.L.P. The Firm of Choice. wwco w cbhm 18
Proposal'to Serve the City of Ocoee, Florida
Segment III: Interim Testing
Interim testing includes:
Testing internal controls as deemed cost effective by examining detailed transactions, using audit sampling
techniques and substantive testing
• Performing Single Audit tests to the extent grants required to be tested are known
• Obtaining listing of cash and investments for confirmation purposes
• Preparing year-end audit programs, which reflect interim findings
• Meeting with appropriate personnel to discuss status of audit and preliminary findings
• Reviewing work papers to ensure quality and thoroughness of work performed
Segment IV: Year -End Procedures
Year-end procedures consist of:
• Confirming cash, investments and bonds payable
• Reviewing cut-off of receivable balances and test amounts recorded.
• Conducting an analytical review of account balances
• Reviewing calculations for doubtful accounts, prepayments and accruals
• Vouching property additions and analyzing changes for appropriate accounting
• Testing depreciation and bond covenant compliance
• Testing accounts payable cut-off through analysis of disbursements
• Completing additional audit procedures as required by the Single Audit Act, if applicable
• Preparing financial statements and related notes and comparing to audited amounts
Year-end review procedures consist of:
• Detailed review of work papers by the engagement partner
• Exit conference with appropriate City personnel to review proposed adjustments, draft of audit report,
compliance and internal control reports, management letter and any other pertinent matters.
• Review of draft of audit report, compliance and internal control reports, management letter and work papers by
a partner with extensive experience in governmental and compliance audits who has not been associated with
performance of the audit (concurring review partner)
Completion of audit report, compliance and internal control reports
• Final review of the State of Florida Annual Local Government Financial Report required under F.S. 218.32 for
submission to the Department of Financial Services
• Meeting with appropriate City officials to discuss the final audited financial statements and management letters
Staffing will include partner and manager time for each segment of the engagement. In addition, experienced staff
professionals will be present to assist in our fieldwork procedures.
Cherry, Bekaert &Holland, L.L.P. The Firm of Choice. www.cbh.com 19
Proposal t6 Serve the City of Ocoee, Florida
Statistical Sampling
Statistical sampling will be used in all aspects of the testing phase, utilizing tailored audit programs. We will
conduct tests to ascertain that the significant controls within the system are functioning as described to us.
Transactions will be selected and reviewed in sufficient detail to permit us to formulate conclusions regarding
compliance with control procedures. Additional tests will be designed to provide reasonable assurance as to the
validity of the information produced by the accounting system. The firm has developed sample size guidelines for
all samples performed in order to form an opinion on the financial statements under auditing standards generally
accepted in the United States of America and Government Auditing Standards.
The objective of the guidelines is to improve the quality of sampling by:
Relating sample sizes more directly with factors that influence sample size
Reducing unexplainable sample size variability
• Encouraging the use of statistical sampling
Structured worksheets, which give appropriate recognition to factors such as reliance on internal control, nature
and timing of audit procedures, size of the organization, dollar total of population being sampled, and sampling
error, are used to effectively determine audit samples and evaluate the results of the procedures performed. We
use these worksheets to determine the sample size for fixed asset additions/dispositions, cash disbursements,
accounts receivable, inventory, and accounts payable. Sample size will vary based on materiality and the
population being tested.
I The extent to which we apply detailed audit procedures and sampling is based on materiality, our evaluation of
audit risks and internal accounting control, and the characteristics of items comprising the account balances or
class of transactions.
Certain compliance matters, such as bond debt coverage requirements, are not subject to representative sampling
procedures. In such instances, we will recalculate compliance requirements or perform other applicable
procedures.
Use of EDP Software
Our audit of the City will feature use of wireless technology and Engagement Manager software. With Engagement
Manager, our documentation is virtually paperless, with procedures documented in an automated environment and
files shared through wireless technology among engagement team members. This software capability is state-of-
the-art.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.obh.com 20
Proposal to"Serve the City of Ocoee, Florida
Go Link CAFR report preparation software. This unique software package was developed exclusively by CB&H
for CAFR preparation after issuance of GASB 34. Numerous government organizations throughout Florida and
other parts of the country use this software. CB&H routinely uses Go Link for clients where CB&H is responsible
for report preparation. The basic premise of Go Link is that client general ledger accounts are mapped into Go
Fund software in a manner that provides linkage to line items on the fund level financial statements. Go Link then
"links" the information from Go Fund with an excel -based module for entity wide conversion entries and entity -wide
reporting, providing a camera ready CAFR, as well as lead schedules and other tools for use in our audit
procedures.
Data Manipulation Software. In order to assist us in the audit process, we may use IDEA data manipulation
software. A big advantage of using IDEA is the fact that it is possible to perform a 100 percent test of a transaction
class for some attributes in less time that it would take to draw a statistical sample. We may use IDEA to assist
with tailored sample selections, as well as the performance of audit tests applied to the entire population of
transactions rather than a small sampling.
IDEA is an excellent tool to test for ways to improve efficiency and effectiveness in addition to compliance. For
example, by using IDEA for one of our large government clients, we discovered that 80 percent of all accounts
payable checks written were for less than $200. Soon thereafter a policy to utilize "P" cards for small purchases
significantly cut down on the processing volume.
Work Paper Management. Our work papers are managed using PPC Engagement Manager, a software package
that allows us to prepare, review, transfer and manage our work in a paperless environment.
I Wireless Technology. On site, our computers are linked using encrypted wireless technology, which greatly
facilitates our ability to efficiently manage our engagements.
In automating our approach to the audit, we will be careful not to duplicate the City's software capabilities. We will
take a long-term view toward the City's audit, investing considerable time and effort to automate in order to
enhance long-term efficiency. We believe that these perspectives will enhance both the quality and efficiency of
i the City's audit.
Information Systems Audit Procedures
Sig Byrd, a firm -designated information technology specialist, will assist with our review of the City's information
systems environment. With Sig, the City will have the assurance of direct review by a senior level individual with 35
years of experience directly related to information systems.
Sig will assist in assessing the effect of systems processing on the City's business and will assess the reliability of
systems processing. With Sig's assistance, we will focus on providing constructive service comments intended to
improve the quality of information and system controls. The results of this assessment will be integrated into our
audit approach to improve audit efficiency and to further define the way in which we address identified risk factors.
`Cherry, Bekaert &Holland, L.L.P. The Firm of Choice. www.cbh.com 21
Proposal to Serve the City of Ocoee, Florida
Examples of computer controls that will be reviewed for each system include the, following:
Access Control - The first and foremost responsibility of the City's Information Technology Department is to assure
that logical and physical access to City's information, network and computing facilities is based upon business
need as defined by Management's policy statements. Our audit program is designed to ensure that policies and
processes are in place to fulfill this responsibility using best practice methods and addressing the unique needs of
the City in terms of local, remote and physical access.
Network Security - In order for the City to fulfill its responsibilities, it must maintain a secure electronic network,
which facilitates communication across all of its facilities and with other governmental and corporate entities. Our
audit program is designed to ensure that sufficient controls are in place to protect that network from internal and
external attacks and abuse.
Change Management/Problem Tracking - The management of change in a modern technology environment is
essential to assuring efficient, orderly and secure processing of information. Our audit includes a review of change
management and problem tracking aspects of the City's IT organization and evaluates them against current best
practices and the specific needs of the City.
Backup and Recovery - In order to assure continuity of operation, the City must maintain best practice processes
that provide continuously available backup media. These processes must address short-term and long-term
recovery operations whether applicable to incidental missing information or long-term processing outages. Our
audit includes a review of these processes and recommends improvements where appropriate.
Information Workflow - Accuracy of financial reporting for the City is dependent upon definition and management
of effective electronic and manual controls at key junctures in the network's operation. This control process must
extend from the capturing of all supporting information to the posting of subsequent journal entries. Our audit
program will define the electronic and manual workflow associated with the City's revenue stream and evaluate the
associated key controls for effectiveness.
COSO - Because our Information Technology Controls Review methodology is based upon the COSO framework, it
not only addresses the control activities that are in place but also the underlying management policies,
documentation of the controls and monitoring of the controls by management. Furthermore, our review examines
controls imbedded in the key business workflows of the City.
Analytical Procedures
In addition to testing supporting documents and details of the accounting records, we will perform an overall
evaluation of account balances and their interrelationship with each other. We design this analytical review to
identify unexpected fluctuations in accounts, the absence of expected fluctuations and other items that appear
unusual in light of expected results, past performances, normal relationships and other factors. This provides a
business operation approach to auditing. Specifically, we perform analytical procedures:
• To assist in planning the nature, timing and extent of our auditing procedures
• As a substantive test to obtain evidential matter about particular assertions
• As an overall review of financial statements in the final review stage of the audit
Cherry, Bekaert & Holland, L.L.P. .The Firm of Choice. www.cbh.com 22
Proposal to Serve the City of Ocoee, Florida
Our analytical procedures, which include comparisons of recorded amounts or ratios to expectations, involve
developing expectations based on plausible relationships (industry data, budget, prior year amounts recorded,
etc.). These procedures are included in the planning, substantive testing, and report review phases of our audit.
Examples of our analytical procedures include:
• Comparisons of interim financial balances to budget and prior year data to assist in planning
• Comparison of utility revenues to equivalent residential and/or commercial units
• Comparison of year-end balance sheet amounts to expectations based on related data, such as customer
deposits to number of utility customers
• Comparison of year-end operating balances to prior year and budgeted data, and updating analytical results
from our interim planning
• Comparison of budgeted and prior year data at the financial statement level
Gaining an Understanding of the City's Internal Control Structure
In our audit process, we invest a significant amount of time planning the engagement. In the planning segment of
the engagement, we will meet with certain key employees of the City to develop mutual expectations as relating to
timelines and any assistance you may provide us in the audit. During this process we will also identify the
significant audit areas and account balances to test. Identification of these areas is typically performed through a
preliminary analytical review. The analytical review is where we detect unusual trends in account fluctuations and
where we develop expectations about the relationships in the account balances.
During the preliminary segment we will review the internal control environment over the financial processes of the
City. The internal control review will be conducted from an Information Technology perspective but will also include
manual controls over the transactional flow in the account balances. The intention of the control review is to rely
on controls from a compliance perspective and to gain an understanding of the processes and controls related to
the City. As appropriate, during this control review we may test certain controls that we will rely on in performing
the audit.
By focusing on the planning segment of the engagement, as well as reviewing and testing controls over the
financial processes of the City, we believe we will have a strong understanding of the significant areas and
processes of the City in order to perform an efficient and effective audit.
Determining Laws and Regulations
Our compliance audit procedures will be designed to identify and test those transactions and activities that are
likely to have a financial impact on the City's basic financial statements and to determine whether they were carried
out in accordance with the provisions of laws, rules, contracts, and grantor guidelines. Our reports will note
instances of noncompliance that could have a material effect on the City's financial statements.
Cherry, Bekadt & Holland, L.L.P. The Firm of Choice. www.cbh.com 23
Proposal to Serve the City of Ocoee, Florida "
The nature and extent of our compliance tests are derived from the following:
• Results of our analysis of internal control over compliance matters
• Review of bond documents
• Correspondence with federal and state agencies
• Review of City agreements
• Review of City internal policies
• Rules of the Auditor General of the state of Florida
• Florida Statutes
• Grant agreements
• AICPA Statements of Position
• AICPA Statements on Auditing Standards
• Other applicable professional standards and guidance
Compliance Audit Samples
Our approach to drawing audit samples for purposes of tests of compliance is discussed in the Statistical Sampling
section.
Approach to Management Letters
In preparing management comments/recommendations, our client service team utilizes a "bottom -up" review
approach to avoid any surprises. This approach allows any draft comments or recommendations to be initially
reviewed at the level within the department where direct management responsible for the activity under review
l rests and only subsequently discussed at higher levels.
Any criticism of operations will be constructive. Our findings will contain a statement of condition describing the
situation and the problem that needs attention, what should be corrected, and why. We believe our suggestions
will withstand the four basic tests of corrective action:
• The recommendations will be cost effective
• The recommendations will be the simplest to implement in order to correct a problem
• The recommendations must go to the heart of the problem and not just correct the "symptoms"
• The corrective action will document why the deficiency occurred
We do not dwell on matters of insignificance; rather, we design our letters to be useful and beneficial for improving
the City's performance.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com . 24
Proposal to Serve the City of Ocoee, Florida J
Experience with the GFOA Certificate of Achievement for Excellence in Financial
Reporting
The Government Finance Officers Association's Certificate of Achievement for Excellence in Financial Reporting is
a mark of financial accountability and quality reporting. We will assist you in any way necessary to continue to
receive this award every year. CB&H has extensive experience in assisting with the preparation of and the review
of the statements and related information for submission to the GFOA for this award. Ron Conrad, the engagement
partner identified in this proposal, has served on the GFOA review committee for the Certificate of Achievement
Program for seventeen years. Firm -wide we have assisted over 100 governmental entities with this award.
Identification of Potential Audit Issues
It is of utmost priority to ensure your service team professionals are current with developments in industry
practices, accounting releases and auditing requirements. Of particular note are the risk -based audit standards
applicable to the City in fiscal 2008, requiring significantly more detail in internal control documentation and
evaluation. Additional standards are applicable in fiscal 2007, including standards regarding audit documentation
and evaluation of control deficiencies.
In addition to a highly communicative environment and industry training programs, the following facilitate our efforts
in addressing potential audit issues:
Our service team understands the industry issues relevant to the City. The combination of our Firm's
resources, level of partner involvement and experienced team members provides an excellent service team of
professionals capable of servicing the City's needs.
To facilitate meeting your expectations and deadlines, we will meet with you during the planning phase of the
engagement to obtain an understanding of the assistance the City will provide in performing the audit.
• Regular communication will be ongoing with the City's personnel, allowing for timely knowledge of the City's
matters as they arise. When we learn of matters the City may not be aware of, we will be active in conveying
relevant information.
We are very much aware of Florida audit requirements and accounting requirements affecting the City's audits.
As with other issues that may arise, we will work with the City throughout the year to achieve appropriate
resolution. Our resources throughout the Firm, which continue to build in the government practice, will be
utilized as appropriate.
In summary, CB&H has a sound knowledge of the City's operations, a sound knowledge of the City's accounting
and auditing issues, and has professionals that are highly experienced and ready to serve you without conflict. We
believe that the combination of these attributes, together with an approach that is proactive in identifying and
resolving audit and accounting issues, will best serve to address any potential problems that may be experienced
during the course of our tenure as auditors.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com 25
I
;rroposal to Serve`the City of Ocoee; Florida
I Price Proposal
� d
Attached behind this page is the price proposal form.
Cherry, Bei rt & Holland, L L.P. The Firm of Choice. uiww 0h.com 26
PRICE PROPOSAL FORM
RFP #07-004 AUDITING SERVICES
TOTAL ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED
IN RFP #07-004 FOR FISCAL YEARS ENDING 2007, 2008, 2009:
2007 - $52,000; 2008 - $56,000; 2009 - $59,000
$ "-malty These prices include Single Audit
fifty-two thousand zero 2007
fifty-six thousand zero 2008
fiftv-nine thousand dollars & zero cents 2009
(A renewal option for an additional two years may be negotiated).'
If Single Audit is not required, prices are as follows:
2007 - $45,500; 20.08 - $49,500; 2009 - $52,500
TOTAL ANNUAL PRICE PROPOSAL FOR PREPARATION OF THE COMPREHENSIVE
ANNUAL FINANCIAL REPORT (CAFR), IF REQUIRED:
$ 9,500 each year malty,.
dollars & .... cents , -
August 28, 2007
Date
Cherry, Bekaert & Holland, L.L.P.
Company Name
AD0010678
License Number
Ronald A. Conrad
Authorized Officer (print)
Authorized Signature.
RFP #07-004
21
Prop6sal totserve the City of Ocoee, Florida
Appendix A: Client Service Team Resumes
Oherry, Bekaert & Hoiland, L L P The Firm of Choice. WWWX h.com
� d
Proposal to Serve the City of Ocoee, Florida
RONALD A. CONRAD, CPA
ENGAGEMENT PARTNER
EDUCATION
Iowa Wesleyan College, Bachelor of Arts in Business Administration and Accounting; has prerequisite continuing education
required by Government Auditing Standards. Licensed to practice as a certified public accountant in the state of Florida.
EXPERIENCE
Ron leads our Florida government services group and, prior to joining CB&H, served as the Director of Public Sector Services
for an international accounting firm in Central Florida. He is recognized for his expertise in accounting and compliance audit
matters and is an author and frequent speaker on public sector matters. Ron served as a member of the quality review team
and was a firm -designated compliance audit specialist with an international accounting firm, is a member of the quality review
team for CB&H and is a member of the GFOA Special Review Committee for Excellence in Financial Reporting. He joined
CB&H in 2001 to lead our Florida public sector practice.
GOVERNMENTS SERVED
City of Clearwater, FL
City of Ft. Myers, FL
City of Haines City, FL
City of Largo, FL
City of Maitland, FL
City of Norfolk, VA
City of Bellaire Beach, FL
City of Pinellas Park, FL
City of Sanford, FL
City of Stuart, FL
City of Virginia Beach, VA
City of Winter Park, FL
City of Winter Springs, FL
City of Casselberry Community Redevelopment Agency
Central FL Regional Transportation Authority
Enterprise Florida
Florida Agency for Health Care Administration
Florida's Turnpike
PROFESSIONAL ACTIVITIES
Greater Orlando Aviation. Authority
Hillsborough County, FL
Hillsborough County Aviation Authority
International Drive Master Transit District
Charlotte County, FL
Manatee County, FL
Martin County, FL
Monroe County, FL
Orange County, FL
Orange County Housing Finance Authority
Orange County Industrial Development Authority
Orange County Library District
Orlando -Orange County Expressway Authority
Orlando Utilities Commission
Sarasota County, FL
Sarasota Manatee Airport Authority
Seminole County, FL
Seminole County Expressway Authority
American Institute of Certified Public Accountants
Florida Institute of Certified Public Accountants
Central Florida Chapter, Florida Government Finance Officers Association
Florida Government Finance Officers Association
GFOA Special Review Committee for the Certificate of Achievement Program
Cherry, Bekaert &Holland, L.L.P. The Firm of Choice. vnm.cbh.com
Proposal to Serve the`City of Ocoee, Florida
C.A. (TONY) MORRIS, CPA
SECOND LOCAL PARTNER
EDUCATION
B.S.B.A. with major in Accounting from the University of Florida; has prerequisite continuing education required by
Government Auditing Standards. Licensed to practice as a Certified Public Accountant in the state of Florida.
EXPERIENCE
Tony has spent over 40 years in public accounting, is the managing partner of our Florida practice, and is currently serving on
CB&H's Executive Board. He will serve the County as a second service partner and will be responsible for the work product.
Tony is the lead client service partner for a number of governmental audits. His audit experience includes county
government, municipalities, county school districts and other governmental units,
� d GOVERNMENTS SERVED
Collier County District School Board
Escambia County District School Board
International Drive Master Transit District
Florida Virtual School
Lake County District School Board
Lee County District School Board
Orange County District School Board
Osceola County District School Board
PROFESSIONAL ACTIVITIES
Orange County, FL
Orange County Library District
Pasco County District School Board
Pinellas County District School Board
Richmond County, GA
Sarasota County District School Board
Seminole County District School Board
St. Lucie District School Board
American Institute of Certified Public Accountants
Florida Government Finance Officers Association
Florida Institute of Certified Public Accountants
Member of the AICPA — SEC Practice Section — Peer Review Committee—1987-1990
Cherry, Bekaert &.Holland, L.L.P. The Firm of Choice. www.cbh.com
Proposal to Serve tY
lorida
JOHN MONTORO
CONCURRING REVIEW PARTNER
EDUCATION
University of Virginia, Bachelor of Urban Planning; has prerequisite continuing education required by Government Auditing
Standards. Licensed to practice as a Certified Public Accountant in the States of Virginia, Maryland and North Carolina.
EXPERIENCE
John is CB&H's lead practitioner in providing government services, responsible for overseeing the Firm's Government
Services Group. He will serve as concurring review partner on the City's engagement, providing quality review and
assistance on technical issues as appropriate. John has provided audit and consulting services to numerous government
entities throughout his 30-year career as a government practitioner, including his current role as engagement partner for
many of our municipal clients. In addition to audit services, John has provided consulting services for technology strategic
plans, budget forecasts, rate and debt capacity and internal control reviews.
GOVERNMENTS SERVED
Charlotte County, FL
Chesapeake Redevelopment and Housing Authority, VA
City of Clearwater, FL
City of Largo, FL
City of Lynchburg, VA
City of Manassas, VA
City of Newport News, VA
City of Norfolk, VA
City of Portsmouth, VA
City of Virginia Beach, VA
PROFESSIONAL ACTIVITIES
Greenville Utilities Commission, NC
Hanover County, VA
Monroe County, FL
Orange County Library District
Orange County, FL
Orlando -Orange County Expressway Authority
Richmond Redevelopment Authority, VA
Sarasota County, FL
York County, VA
American Institute of Certified Public Accountants
Virginia Society of Certified Public Accountants
Associate member, Government Finance Officers Association
Associate member, Virginia Government Finance Officers Association
Cherry, Bekaert &Holland, L.L.P. The Firm of Choice. www.cbhXom
Proposal to Serve the City, of Ocoee, Florida .' : J
PATRICK THOMSON, CPA
AUDIT MANAGER
EDUCATION
Columbia University, Masters in Business Administration, Finance and Accounting major; has prerequisite continuing
education required by Government Auditing Standards. Licensed to practice as a Certified Public Accountant in the States of
Florida and New York.
EXPERIENCE
Patrick has 18 years of public accounting experience, primarily with an international accounting firm.
GOVERNMENTS SERVED
Central Florida Regional Transportation Authority (LYNX)
City of Casselbeny Community Redevelopment Agency
City of Haines City, FL
City of Stuart, FL
Enterprise Florida
Hillsborough -Area Rapid Transit Authority (HARTline)
International Drive Master Transit and Improvement District
Martin County, FL
Monroe County, FL
PROFESSIONAL ACTIVITIES
American Institute of Certified Public Accountants
Florida Government Finance Officers Association
Florida Institute of Certified Public Accountants
Orange County Housing Finance Authority
Orange County Educational Facilities Authority
Orange County, FL
Orange County Health Facilities Authority
Orange County Library District
Orlando Utilities Commission
Osceola County, FL
Osceola County District School Board
Sarasota County, FL
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.coih
Proposal to Serve the City of Ocoee; Florida
SIG BYRD
INFORMATION TECHNOLOGY MANAGER
EDUCATION
B.A. in Economics — University of St. Thomas
Southwestern Graduate School of Banking, SMU
EXPERIENCE
Sig is an experienced professional with more than 35 years in the technology industry. Prior to joining CB&H, Sig utilized
several years of technology and management experience in the performance of technology based consulting engagements in
the areas of technology risk assessment, business continuity, general controls reviews and IT audits. He has conducted
engagements for Sarbanes-Oxley compliance, OFAC Compliance and Gramm -Leach -Bliley Compliance. Sig also has
experience in systems development, technical support, data center operations, information security, disaster recovery,
change control, technology integration and vendor relations.
CERTIFICATIONS
Sig is certified to perform PIN and Key Management Audits for member banks of STAR, NYCE and PULSE.
Cherry, Bekaert & Holland, L:L.P. The Firm of Choice. www.cbh.com
Proposal to Serve the City of Ocoee; Florida �'' ; , J
CARRIE CROSS, CPA
AUDIT SENIOR
EDUCATION
B.S. in Accounting from University of Florida, Masters in Accounting with emphasis in Auditing from University of Central
Florida; Carrie has completed at least 24 hours in subjects directly related to governmental accounting and auditing
continuing education, as required by Govemment Auditing Standards. Licensed to practice as a Certified Public Accountant
in the state of Florida.
EXPERIENCE
Carrie has approximately four years of experience, primarily serving the public sector. In addition to governments served, her
clients have included Rollins College, the Orlando Museum of Art, Florida Citrus Sports and the Crom Corporation.
GOVERNMENTS SERVED
j Central Florida Regional Transportation Authority
City of Sanford, FL
Collier County District School Board
Lake County District School Board
Lee County District School Board
PROFESSIONAL ACTIVITIES
American Institute of Certified Public Accountants
Florida Government Finance Officers Association
Florida Institute of Certified Public Accountants
Martin County, FL
Orange County, FL
Osceola County District School Board
Seminole County District School Board
Cherry, Bekaert & Holland, L.L.P.The Firm of Choice. www.cbh com
Proposal to Serve the City of Ocoee, Florida";;
STEPHANIE ROSENSKY
AUDIT SENIOR
EDUCATION
University of Central Florida B.S. in Accounting, Masters in Accounting; Stephanie has completed at least 24 hours in
subjects directly related to governmental accounting and auditing continuing education, as required by Government Auditing
Standards.
EXPERIENCE
Stephanie has served as the in -charge auditor for numerous government organizations and is experienced with a wide
diversity of government audits. She was primarily responsible for preparation of the CAFR for Haines City, using Go Link
CAFR preparation software.
GOVERNMENTS SERVED
City of Haines City, FL
City of Sanford, FL
Florida Virtual School
Monroe County, FL
Orange County, FL
Orange County District School Board
Orange County Housing Finance Authority
Orange County Library District
Orlando -Orange County Expressway Authority
Osceola County District School Board
Pasco County District School Board
Seminole County School Board District
St. Lucie County District School Board
Cherry, Bekaert,& Holland, L.L.P. The Firm of Choice.. " www.c.bh.com "
d
ProlDosal to Serve the City qf0coee, Florida I
Appendix B: Peer Review Letter
Clifto In
Gundersmall?
cullned ft-111k ACCUU11U.- I
Octobiar2l.2004
To the Partners of
Cherry Bekaert & Holland L.L.P. Peer Review Cornmi ttee
and the Center for Public Company AUdit.Firais
We have reviewed the system of quality control for the accounting and auditinig, practice of
Clierry Belcaert & Holland L.L.F. (the firm) applicable to non SEC issuers in effect for U10 Year
ended April 30, -1004. The firm's accounting and auditilig practice applicable to SEC issuers
was not reviewed by us since the Public, Company Accotmtina Oversight Board KA013) is
responsible for itispectiag that portion of the fiMIS aCCOUnting and. aUditing practice in
accordance with KA0.13 requirements. A system 'orf quality cqntrol encompasses the firm's
organizational st=tLITe and the policies, adopted and procedures established to provide it with
reasonable assurance or complying N. ith pro6essional standards. Tire elements of.quaUty , control
,are described in the Statements on Quality ConlTol Standards issued by the -American Institute of
Certified Public Accountants (the AMPA). 'The designof the system, and rompli,anca with it,.
are the responsibilities of the firn", Our respvnsibility is to express an op=on on the design of
the system, and the firm's compliance withthe systern based. on our review.
()ur r-eview was conducted in accordance with standards established by the Peer Review
Committee of tho Colter f*r Public CompanyAudit Firms and included procedures to plant and
perfann the review that are suuu=Tizcd in the attached description of the. pear, review process.
Our review would not necessarily disclose all .wealmesses in the system of quality control or all
instances of lack of compliancp with it since it was based on selective tests. BCMUSC there are
inherent limitations in t . lie effectiveness of ally systell.j. of quality control, departures from the
system may occur and not be detected. Also, projection of any evaluation ofsystarn Gfquality
control to future periods is subject to the riskthat the system of quality coniml may becarnz
inadequalu because of Changes in Conditions, or that the degree of compliance with the policies
or procedures may deteriorate.
in =t Opinion, the.systern of quality ColitTol far the accounting and auditing practice applicable
to t1i a nort-SE C issuers of Cherry 13 ek-im t & Holland L.L.P. in c5ect for the y=. ended April 30,
2004, has boen designed to Meat lie; requirements of t1m quality control standards for =-
accounting and auditing practice established by the AXPA, and was complied with during the
year then ended to provide the f= with reasonable assurance of QomPJYi],19 With applicable
professional standards.
Cheiry, Bekaert & Holland, U.P. The Firhi of Choice.. WWW.cbh.coM
� d
Proposal to Serve the City of Ocoee, Florida
As is customary, in a peer review, Svc have isstie�t � l.ettcr �rrd�r tl�i.s rlate:�hat sdt forth comm.en:ts
relsting to certa .tx policies and procedures o,r compliance with them.. The niattcrs described in
the letter tvcre not considered to be of sufficient significance to effect the apiniatz expressedin
this, .report.
Cherry; Bekaert & Holland, L.L.P. The Firm, of Choice. www.cbh.com
Proposal to Serve the City of Ocoee, Florida
Attachment to the Peer Rtvieiv Report of Cherry Dekaert & HoHand L.L.P.
Destelption of the Peer Review Process
1 Overview Center) Peer RGview
Firn-Ls enrolled in the AICPA Center for Public Company Audit Firmsn
. (the C.
Program have their system of.quality control periodically reviewed by independent pears. These
reviews are system and compliance cri crited with the objectives of evaluation wbather-
The reviixvcd firni's systern of quali.ty control for its accounting and auditing practice
applicable-ied to inect the re .9-LlirerftelltS Of tile QLIUIiLy
to non -SEC issuers has been desigi
Control Standards established: by the AICPA,,
Tile reviewed firta"s quality conlro ;I policies and, procedures applicable to, non! -SEC
issuers were being complied withto provide the firm with reasonable assurance; of
complying Nvith professional, stand arcLs.
A peer review is based on selective tests and directed at assessing, whether the design of and
conipliance with the finn's system, of quality contro-I for its accounting mid auditing practice
P
rim 'With reasow*le, noL absolute, -assurance of
applicable to non -SEC issuers provides Citeri Peer review on the firm's SYStenI Of
con-1plying With proassionastanda
rds, ards, Comequently a
quality control is not intended to, and does not, provide asstwanec, witli respect to any individual
engagement canducted by the fimi or that no= of the financial statements auditca by the filml
should be restatcd.
The Center's Peer Rovie-W COMMitier, (pRC) establishes and inam review standards.
peer reviestandard--,.
At regular meetings and. through report evaluation task forces, the PRC considers each peer
.. a nes.
review, evaluates the reviewer's cOmpetcace and pcifonnaace, and exami every report, letter
of comments, and accompanying response from the ra-viewed firm that states its corrective
ve action
plan before the peer review is fi-nalized. The Center's staff plays v ke -role in overseeing the
. ff pla Y
perfnrmance of peer reviews w orki ng closely with tlic peer review teallis and the PRC.
Onou the PRC accepts the Peer revimv reports, letters of comments, wid reviewed EMIs"
responses, tliese documents are maintained tained in a file available to the public. Li.sume Situations,
the public file also includes a signed uvidertaking, by the firm agreeing to specific ffillOW-UP
action requested by the PRC.
Firms that perform audits or play a sUbstandal role in the audit of one or more. SEC issuers, as
defined by the Public Company Accounting aversight, Board, (PCA0B), arc required to be
registered with and have, their accounting and auditing practice applicable tO SEC issuers
inspected by the PCAOB. Therefore, we did not mview the firm's accounting and auditing
-practice applicabW to SEC is SUM
Cherry, Bekaeit & Holland, L.L.P. The Firm of Choice. www.cbh.com
Proposal to.Serve the City :ot'Qcople, Florida,
Planning tbe Review for the Firm's kccounflng aud Auditing Practice Applicable to Lion-
SEC Issiters
To plan the review of CbeRekaert.&IHolland, L.LP-, we obtained an understanding.of (1).thc
nat= and extent of die firms accounting and aucliting, practice, and (2) the design of tho firms
system of quality contra] sufficient to assess the inherent and co r1trol risks. implicit in its Vradicc-
Tnherent risks were assessed by obtaining an. understanding of the firni's practice, such as the
industries of its clicnts and, other factors of cornplaxity in serving t1lose clients, and the
organization of the fin-a's personnel into practicey units. Control risks were;. asszssed b obimining
an Luiderstanding of the design of the firm's system of quality control, including its audit
methadology, and monitoring procedures, Asscssi iog control nisk is the process of evaltiating the
e-ffectiveliess of the reviewed finn's system of quality control in preveritingthe performance of
enpgements that do no( comply with professional standar&
Performing the Review fair tIj e Firm's accounting and Auditing P ra etice App Ilea ble to No n -
SEC Issuers
1 Based on our assessment of the conabined level Of inherent and control risks, we. identified
practice units and selected. engagernents within those units to test for. coTnpliancc With the firm's
systelu of quality controt. The engagements selected for revieNv included engagemants
performed under flie.Government Auditing t multi -office audits,
ts, and audits of
Ernployee Bendit PlaTis. The engage.Melits selected for -review represented across-sectian of tllv,
firm's accounting and a-udijing practice ivith emphasis Orl, higher -risk -engagements. Vie
engngement reviews included exarnhiing working paper files and reports aiid-[Mieving
cagagemen(personnel.
The scope of the peer review also included cv-1mining selected administrative and personnelfiles
toddzrniine compliance with the fl-='s Polides and procedur for the elerneilts Of quality
control pertainhig to indepandence, integrity, and. objectivit),; prrsomicl 111anagpment; and
anal engagemelits. Prior to concluding the rcvicw, I've
-cceptance; and coT , n1inuarice of.clicats reassessed the adcquarY of scrape alidconducted a. rn =fl.a with finn mana
genjent to discuss our
findings and recommendations.
Cherry Bekaert & Holland, L.L.P. The Firm of Choice. WWW.cbh.com
Proposal to'Serve the City of Ocoee, Florida
CEfton
Gunderson LLP
01f4llIgif PJAIL, AltaLMIZ01% A COMNOWIM
October 21, 2004
To the Partners of
Cherry Be-kaert & Holland L.L.P.
and the Center: for Public Company Audit Firms Peer Review COMMittee
1 We have reviewed the systern of quality control forte accounting and auditing practice of
Cherry Bckaeri &.1-follaald L.L.P. (the fine) applicable to non -See issuers in.. efrect for tine year
ended ,April 30, 2004 and have issued Our MPOIT thereon dated October 21, 2004, The matters
described below were; not considered to, be of sufficient significance to affect the opinion
expressed in that report, which shc did. be read in conjunction with this letter.
E ngagernent Performance
,Phis in,g — 'nie firm"s Cl-uldity control policies andprocedures require the completion of a
financial 5t3tement disclosure checklist f eill
oritsfitildisclosureen,gag erits. Howcvcr,can several
engagements reviewed five nated inappropriate ansWeFs on the checklists in the areas of
investments and debt disclosures. As a result, several financial statements did not disclos.call the
disclosures required by generally ;acreptod'accoujithi-.prime iAles for these two items, None of
the missing disclosures were of Such Sigaificance to cause the financial statements to be
tnisleading.
Reconunendaflon — The &M Should caraftilly review the proper use of its financial staternimt
disclosure checklist as part of the final, financial statemcnt review, fn addition, a training session
should be held to review the questions o.n the checklist with regard to investments and debt
disclosures and establish pl-ocadares f6r resolving issues when questions about :-,tech disclosures
arise,
17inding — The firni's audit progranis outfilie steps for perfbimiing and documenting audit
procedures for dotermining fair value of invesvnents, raliance on SAS 70 Type Il letters,
determining reporting entities and component units, and -reviewing budgetary versus actual.
j.nforination'r, However, our review disclosed several instances where the fain's working papers
did not iriclude docuniel.itatiork f6r. these areas- Ti rough discussion with engagement personnel,:we, wer . a able to satisfy ourselves iliat the procedures were porformed but not adequately
documented.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. ur,".0h.com
Proposal to Serve the City of Ocoee, Florida
Recommendation — The firm should. rernind all professiorials of the matters to be considered
,when documealing procedures performed in the above areas. Tile. fff i should consider
rwnducting e training session to hial�li it the documentation rnatters rioted during the. review.
Finally the firni should monitor the adequacy of audit documentation throughincreased .emphasis
by the reviewers of audit eagagenients in the above areas.
Findfincr — Tile firms qunliry .control policies andproced res require that representation letters
refer to unconnected adjustments and that a schedUlc of st ch adjustments be attached to the
represealtation letters. We, found several instances in which tilt; repreSentittiotl letter did not
addr s, uacotTecteti adjustments or [lie schedule attachcd contained incorrect arnounts.. These
instances did not result in any fmancial statement misstatements.
Recommendation — We recommend that the firm re-emphasize its policies grad procedures
concerning reference to uncorrected adjijawn.ts and hold a training session to review ,such
procedures. In addition, a1T reviewers should more closely monitor representation letters n,nd the
scheduI es a3tachcd to such letters for uncorrected adjustments,.
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com
1Pro.p.osa1.to,Serve1heCtyof Ocoee, Florida
November 5, 2004
Center for Public Company Audit Firms Peer Review Committee
American Institute of Certified Public Accountants
Practice Monitoring Department
Harborside Financial Center
201 Plaza Three
Jersey City, New Jersey
This letter represents our response to the letter of comments issued in
I connection with our frm's peer review for the year ended April 30, 2004, and
should be read in conjunction with that letter.
The Firm will issue communications to all professionals to focus their attention on
the matters noted in the: peer review. In addition, these matters will be the focus
of training sessions to be conducted in the near future. The items noted during
the peer review will also be given emphasis In the design and delivery of future
professional development programs at appropriate levels.
The communications and training described above will emphasize. (I) accurate
completion and review of our financial statement disclosure checklists,
particularly in the areas of investment and debt disclosure requirements, (ii)
documentation requirements related to procedures performed, results of such
procedures, and conclusions reached, particularly in the areas of determining fair
values of investments, reliance on SAS 70 Type It letters, determining: reporting
entities and component units, and reviewing budgetary versus actual information,
and (iii) compliance with the requirements to obtain managements
representations regarding uncorrected financial statement adjustments.
14410
Cherry, Bekaert & Holland, L.L.P. The Firm of Choice. www.cbh.com
Proposal to Serve the City of Ocoee, Florida
Appendix C: Required Forms/Drug-Free Workplace Statement
The RFP #07-004 Company Information/Signature Sheet is attached behind this page.
l The Acknowledgement of Addenda is attached behind this page.
1 Drug -Free Workplace
l CB&H certifies that we have implemented a Drug -Free Workplace program.
Cherry,,Be ,aert & Holland, L.L.P., The Firm of Choice. www.cbh.com
RFP #07-004 COMPANY INFORMATIONUSIGNATURE SHEET
FAILURE TO COMPLY WITH THESE RFP INSTRUCTIONS WILL RESULT IN DISQUALIFICATION OF
YOUR PROPOSAL. PLEASE SIGN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND
ALL RFP INSTRUCTIONS AND THAT THE PRICES REFLECTED ON THE "SCOPE OF SERVICES/PRICE
PROPOSAL FORM" ARE ACCURATE AND WITHOUT COLLUSION,
Cherry, Bekaert & Holland, LIP
COMPANY NAME
AUTHORIZED SIGNATURE (manual)
Ronald A. Conrad/Partner
NAME/TITLE (PLEASE PRINT)
800 N. Magnolia Ave.,_Suite 1300
STREET ADDRESS
Orlando. FL 32803
CITY STATE ZIP
FEDERAL ID # 56-0574444
Individual Corporation A Partnership
407-423-7911
TELEPHONE (INCLUDE AREA CODE)
407-841-4887
FAX (INCLUDE AREA CODE)
raconrad@cbh.com
E-MAIL ADDRESS
IF ItENII'ITANCE ADDRESS IS DIFFERENT
FROM PURCHASE ORDER ADDRESS,
PLEASE INDICATE BELOW:
Other (Specify)
Sworn to and subscribed before me this Z LA day of `It 20
Personally Known i" or
Produced Identification
(Type of Identification)
RFP ##07-004
Notary Pub�2 - State of L
County of
Signature of Notary Public
Printed, typed or stamped
Commissioned name of Notary Public
Now OR, Notary Public Sta:Oflorida
Rebecca A Naudc oMy Commission 8129 22
N,,�o�Ex ires 01109120
11. INSURANCE TERMS & CONDITIONS:
Proof of Professional , ,Liability Insurance: Provide a current insurance
certificate providing proof of Professional Liability. Insurance. The successful
Respondent shall be required to provide evidence of both General (Public &
Property) Liability and Professional Liability Insurance in the form of a
certificate of insurance issued on behalf of the City of Ocoee by companies
acceptable to the City at the following minimum limits and coverage's with
deductible amounts acceptable to the city:
Comprehensive General Liability Insurance: $1,000,000.00
(The City of Ocoee is to be named.as an additional insured)
Professional Liability Insurance: $1,000,000.00
12. SUMMARY OF LITIGATION:
Provide a summary of any litigation, claim(s), bid or contract dispute(s) filed
by or against the proposer in the past five (5) years which is related to the
services that the proposer provides in the regular course of business. The
summary shall state the nature of..the litigation, claim, or contact dispute, a
brief description of the case; the outcome or projected outcome, and the
monetary amounts involved. if none, please so state.
(Attach additional sheets if necessary)
Please see page 6 in proposal #07-004
13. ACKNOWLEDGMENT OF ADDENDA:
Proposer acknowledges receipt of the following addenda:
No. ONE (1) Dated . August 24, 2007 .
No. Dated
No.. Dated
RFP #07-004 12
p,
Pro osato ry l Se e the Ci of Ocoee, Florida
Appendix D: Insurance Certificates
.400R1. CERTIFICATE OF LIABILITY INSURANCE Op in P
CKERR-L
DATEIMMPDD
10/26/06/06
rRDDUCER
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION
ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE
Brawn i Brown of Richmond
HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR
P.O. Box 3070
ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW.
Richmond VA 23228
Phone:804-627-1000 Fax:804-553-0503
INSURERS AFFORDING COVERAGE
NAIC0
INSURED
UlSURERA: rra i— InAannisY to er m,ee
25666
MlSURER B,
Cherry 8w}caert 6 Holland ZLP
Mr. Ra cnn iatopher
c
LhmondxVA'23261-7127
INSURER C:
INSURER O:
INSURER E- }
_
)VERAGES
THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE PDLICYPERWD INDICATED: NOTWITHSTANDING
ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTIIERDOCUMENT N9THRESPECTTO WHICH THIS CERTIFICATE MAYBE ISSUED OR
MAY PERTANL, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN tS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDIT*NS OF SUCH
POLICIES. AGGREGATE LWTS SHOWN MAY HAVE. BEEN REDUCED BY PAID CLAMS.
LYN
)INSAU
TYPE OF INSURANCE
POLICYINNBER
-111 "M/D
DATE0IM(DD)YYj
LRAITS
GENERALLIADILITY
EACH OCCURRENCE
111OOD,DOO
A
X WAIERCLALOENERALLLABILTY
CLAWS WOE XOCCUR
1-660-552X6312-TIA-
610/01/06
10/01/07
PREMISES4��nin a
s l 000, 000
LIED EXP *Worm P wrq
.f 1O 000
PERSONAL L ACV*UURY
sl DOO,000
GENERAL AGGREGATE
S DOO,ODO
GENL AGCREGAIP-11611T APPLIES PER:
PRODUCTS• COMPIOPAGG
I s2 0D0 000
17 POLICY 7 jr0of LOC
Emp Ben.
1 OOO OOO
A
AUTOMOBILE
X
LIAORM
ANYAUTO
BA-454HS756-06-SEL
10/01/06
10/01/07
COMBINED SINGLE LIMIT
(E*4=z*:0)
S1,000,000
BODILY INJURY
(PWP M)
S
ALL OWNED AUTOS
SCHEDULEDAUTOS
BODILY INIURY
(Pcaukkpq
S
HRiEDAUTOS
NON-OWNEDAUTOS
PROPERTY DAMgO`
IPeraccicuul
S
t
I
GARAGELIAOILITY
j
AUTO ONLY -EA ACCIDENT
s
OTHERTHhN EA ACC
AUTO ONLY; G
S
{ ,
1
ANY AUTO
!I
I
=
EXCESSNIEBRELLA LIABILITY
I
EACH OCCURRENCE
S51000,_000
A
OCCUR CLAIMS MADE
IDN-CUe-iSi.BTa25-YMY08
1D/01/06
10/01/07
AGGREGATE
$5,000,000
.��
s
,.
DEDUCTIBLE
s
X RETENTION s5 000
I7
A
WO"em COMPENSATIOIFAND
EMPP"RI TCPJLIABILFTY
ANY PAOPRIETORRARTNDR,EXECUTNE
OFFICERMEMBER G=LUDEO?
U�v.� awlibR Ulm
Z E�IALPROVISIONSb.I.
IKUS-449H358-6-06
10f01/06
1
10/01/07
.E.L.
EEL
_ TORY tN+LITS -.1,�
E.L. EACHACCICEIt7
:5o0ooq
DISEASE-EAEMPLOYEE
$500000
DISEASE -POLICY UMIIT
$500000
OTHER
A Crime
1-660-552X6312-T1A- 61D/02/06
10/01/07
Employee 250000
Dishonest
DESCRIPTION OF OPFRAMONE I LOCATIONS I VEHICLES! EXCLUSIONS ADDED BY WIDORSCMENT 1 SPECIAL PROVISIONS
FORINFO SHOULD ANY OF THE ABOVE DESCRIBED POLICIES DE CANCELLED BEFORE THE EXPIRATION
DATE THEREOF,THEISSUING INSURER WILL ENDEAVORTO SLAB. 30 DAYSLwmrmn
NOTICE TO THE CERTIFICATE HOLDER RANED TO THE LEFT, BUT FAILURE TO DO SO SHALL
For Information Only NPOSE 140 OBUrArON OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR
REPRESENTATIVE--,
ACORD
Holland, L.L.P. ° The Firm of Choice. www.cbh.com Cherry,; Bekaert & .
Proposal to Serve the City of Ocoee, Florida ''
cc
L G E
-j
IRS urante Brokers
and Cnnsulrants
VERIFICATION OF INSURANCE
ISSUED TO: Cherry, Bekaert& Holland, L.L.P.
We, the undersigned Insurance Brokers, hereby verify that CAMICO Mutual insurance
Company and Interstate Fire & Casualty Company have issued the following described
insurance, which is in force as of the date thereof -
PROFESSIONAL LIABILITY INSURANCE
NAME OF INSURED: Cherry, Bekaert & Holland, LLP. and others as more fully
described in the Policy.
_) POLICY NUMBER; VAL102890-03
PERIOD OF INSURANCE: 12:01 a.m. January 30, 2007 to 12:01 a.m. January 30, 2008
SUM iNSURED: $10,000,000 Each claim and In the aggregate including
costs, charges and expenses excess of
the applicable self -insured retention for
the stated policy period.
RETENTION: $500,000 Each claiml
$1,000,000 Annual aggregate
SUBJECT TO ALL TERMS, CONDITIONS AND LIMITATIONS OF THE POLICY
This document is furnished to you as a matter of information only and is not insurance
coverage. Only....the_.formal..pdfio}-and ,aprpricabte_endorsements-efteLa-mmpmbens ve
review of the coverage In place. The Issuance of this document does not make the
person or organization to wham. it is issued an additional insured, nor does it modify in
any manner the contract of insurance between the Insured and the Insurer. Any
amendment, change or extension of such contract can only be effected by specific
endorsement attached thereto.
Issued at Chicago, Illinois
Date: h ay 29, 2007
Lemma Insurance Group, Inc.
Per
�Z)
Jay Moroney
Executive Vice President
Cherry, Bekaert &Holland, L.L.P. The Firm of Choice. www.cbh.cotn
PROPOSAL FOR AUDIT SERVICES
TO THE CITY OF
OCOEE, FLORIDA
FOR THE FISCAL YEARS ENDING
SEPTEMBER 30, 2007, 2008 and 2009
SUBMITTED August 28, 2007
McDIRMIT DAVIS & COMPANY, LLC
CERTIFIED PUBLIC ACCOUNTANTS AND CONSULTANTS
605 EAST ROBINSON STREET
SUITE 635
ORLANDO, FLORIDA 32801
(407) 843-5406
CONTACT: ELDEN MCDIRMIT, C.P.A.
PROPOSAL FOR AUDIT SERVICES TO
THE CITY OF OCOEE, FLORIDA
TABLE OF CONTENTS
Page
Letter of Transmittal
1-2
Profile of the Firm
3-6
Resumes
7-12
Audit Approach
13-15
Governmental References
16-17
Price Proposal
18
Required Submittals:
Respondent Acknowledgement Form 19
RFP #06-004 Company Information/Signature Sheet 20
LETTER OF TRANSMITTAL
MCDIRMIT /// DAVIS
CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS
August 28, 2007
Audit Selection Committee
City of Ocoee
Ocoee, Florida
Thank you for the opportunity to submit our qualifications and experience to serve as
independent auditors of the City of Ocoee, Florida. The accompanying proposal will provide
you detailed information regarding the scope of services to be provided, as well as a profile of
the firm, the individuals who will serve you, our qualifications and experience, and
representative clients, including specific references.
It is our understanding that we will provide the following services:
Financial audit as defined in Sec. 11.45(I)(b), Florida Statutes, of the basic financial
statements of the City of Ocoee, Florida for the fiscal years ending September 30,
2007, 2008 and 2009. A renewal option for an additional two years may be negotiated.
We will perform the audit within the dates outlined in the Schedule of Audit Work
section of the RFP.
2. The audit will be performed in accordance with generally accepted auditing standards,
Governmental Auditing Standards, the Rules of the Auditor General of the State of
Florida, and the Single Audit Amendments of 1996 and OMB Circular A-133, if
applicable. The audit will be conducted at the combined level and shall include a
review and evaluation of the City's system of internal control.
We believe we are the best -qualified firm to perform the engagement for the following reasons:
° We presently audit eleven municipalities and have an excellent working knowledge of
local laws and requirements. We assist in the preparation of the CAFR for most of
these municipalities and are committed to completing audit work by deadlines stated in
the RFP.
We have assisted nine municipalities in receiving the GFOA "Certificate of
Achievement for Excellence in Financial Reporting". Elden McDirmit is active as a
national review team member of the GFOA's "Certificate of Achievement for Excellence
in Financial Reporting" program. As a review team member; Mr. McDirmit reviews and
evaluates financial reports submitted by cities and counties to determine whether the
financial reports meet the stringent requirements to receive the GFOA'S prestigious
award. Participating as a review team member, Mr. McDirmit has demonstrated his
expertise in governmental accounting and auditing.
MCDIRMIT DAVIS & COMPANY, LLC
605 E. ROBINSON STREET, SUITE 635 • ORLANDO, FLORIDA 32801
TELEPHONE 407-843-5406 • FAx 407-649-9339 • EMAIL: INFO@MCDIRMITDAVIS.COM
MEMBERS: PRIVATE COMPANIES PRACTICE SECTION • AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS • FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
° We have recent and continuous experience, and have devoted a great deal of our
continuing education to the governmental auditing and accounting field. Our firm meets
the independence and education requirements of the Government Auditing Standards
issued by the Comptroller General of the United States. Our firm is independent of the
City of Ocoee as defined by Government Auditing Standards.
° We have significant experience in municipalities issuing debt securities and the required
disclosures and comfort letters issued to underwriters.
We believe in continuing client contact throughout the year, not just during the audit. We
encourage on -going client contact by not charging any fee for phone calls.
° We are members of the American and Florida Institutes of Certified Public Accountants
and an Associate member of the Governmental Finance Officers Association. We are
also a member of the AICPA's Government Audit Quality Center and our firm is active in
governmental organizations throughout Central Florida and serves on governmental
committees of the Florida Institute of CPA's.
° We are a local firm with personnel committed to quality and professional performance,
accustomed to providing a high level of client satisfaction. We believe that our firm is part
— of a team effort to assist the City in developing the best financial reporting possible.
° We have a history of continuity of personnel assigned to the engagement. Our single
office firm and low personnel turnover assures uninterrupted services from our
stockholders and staff.
Because of our unique qualifications and a philosophy based on complete dedication to client
service, we feel confident that we can provide you with responsiveness and a range of experience
that will best serve your needs.
Either Mr. Elden G. McDirmit, stockholder, or Ms. Kelly Leary, stockholder, is authorized to
represent the firm and may be contacted at 605 East Robinson Street, Suite 635, Orlando, Florida
32801-2040, or phone (407) 843-5406.
We would consider it a privilege to serve as independent auditors for the City of Ocoee, Florida.
Sincerely,
ciaa, C 11,141 e D-A
Elden McDirmit, C.P.A.
2
PROFILE OF THE FIRM
PROPOSAL FOR AUDIT SERVICES TO
THE CITY OF OCOEE, FLORIDA
PROFILE OF THE FIRM
Description and History of Audit Firm
McDirmit Davis & Company, LLC was incorporated in the State of Florida in August 1984 and
serves Central Florida from its centrally located office in Orlando, Florida. The stockholders have
over 50 years of combined experience in public accounting, and our firm has grown to be ranked
as one of the top 20 accounting firms in Central Florida by the Orlando Business Journal.
Our firm now consists of the following staff:
Stockholders
4
Managers
2
Senior
1
Staff Accountants/Paraprofessionals
6
Support Staff
3
16
We are members of the American and Florida Institutes of Certified Public Accountants and an
associate member of the Governmental Finance Officers Association.
Our firm has a wide range of clients providing both goods and services in the Central Florida area.
Our practice encompasses auditing, accounting, management advisory and tax services. A list of
all governmental clients audited by us for the fiscal years 2002-2006 is as follows:
City of Oviedo, Florida *
City of Winter Springs, Florida
City of Ocoee, Florida *
City of Lake Mary, Florida*
• City of Longwood, Florida*
City of Belle Isle, Florida
City of Mascotte, Florida
City of Tavares, Florida *
Town of Windermere, Florida
City of Clermont, Florida *
City of Edgewater, Florida
Sanford Airport Authority
We have performed special audits of utility taxes and franchise fees for several of the above
cities, as outlined on Governmental References on pages 16 and 17. We have also performed
water and wastewater rate studies as detailed on Governmental References. We have assisted
in preparation of the Comprehensive Annual Financial Report for the above municipalities and
assisted nine of the municipalities in obtaining the Certificate of Achievement.
These entities are presently clients of McDirmit Davis & Company, LLC
These entities participate in the Certificate of Achievement for Excellence in Financial Reporting program.
PROPOSAL FOR AUDIT SERVICES TO
THE CITY OF OCOEE, FLORIDA
PROFILE OF THE FIRM - Continued
Experience
The following supervisory people will work on the audit:
Kelly D. Leary, C.P.A., Engagement Stockholder
Elden G. McDirmit, C.P.A., Review Stockholder
Chris McDirmit, C.P.A., Audit Manager
Tammy Campbell, C.P.A., Audit Senior
All of the above people have considerable experience on governmental audit engagements.
Resumes detailing their experience follow on pages 7 through 12. All supervisory people
assigned to the audit are C.P.A.s.
The professional staff of our firm have been conducting governmental audits in the Central Florida
area for the past twenty years. We are experienced auditors in a variety of industries and offer
experience in auditing federal grants under the Single Audit Act and performing compliance audits
of state grants. Our policy is to assign staff accountants to the same city audit each year, but
rotate the areas they work on.
License to Practice in Florida
Our firm and all professional staff are properly licensed to practice public accounting in the State
of Florida. Also, the firm and all professional staff meet the independence and education
requirements of the Government Auditing Standards issued by the Comptroller General of the
United States.
Quality Control
Our firm has been a member of the Private Companies Practice Section of the American Institute
of Certified Public Accountants since 1985. Member firms are required to adhere to quality control
standards established by the AICPA Quality Control Standards Committee and to submit to peer
reviews of the firm's accounting and audit practice. Peer reviews are intensive reviews of a firm's
quality control system. Our firm has had five peer reviews performed by the American Institute of
Certified Public Accountants. Each peer review has included a review of a local governmental
entity. We received an unqualified opinion on each review which represents the best opinion that
a firm can receive. We have never been subject to any litigation or disciplinary actions by a client,
the State or any professional organization for substandard field work. A copy of our firm's most
recent unqualified opinion follows this page. This peer review included a review of two
governmental engagements.
Davidson, Jamieson & Cristini, P.L.
Certified Public Accountants
1956 Bayshore Boulevard
Dunedin, Florida 34699-2503
(727)734-5437 or736-0771
FAX (727) 733-3487 Member
Members of the Firm American Institute of
John N. Davidson, CPA*, CVA Certified Public Accountants
Harry B. Jamieson, CPA* Florida Institute of
Richard A. Cristini, CPA*, CPPT, CGFM Certified Public Accountants
*Regulated by the
October 19, 2005 State of Florida
To the Stockholders
McDirmit, Davis & Company, LLC
We have reviewed the system of quality control for the accounting and auditing practice of McDirmit, Davis
& Company, LLC (the firm) in effect for the year ended June 30, 2005. A system of quality control
encompasses the firm's organizational structure, the policies adopted and procedures established to provide
it with reasonable assurance of conforming with professional standards. The elements of quality control are
described in the Statements on Quality Control Standards issuedby the American Institute of CPAs (AICPA).
The firm is responsible for designing a system of quality control and complying with it to provide the firm
reasonable assurance of conforming with professional standards in all material respects. Our responsibility
is to express an opinion on the design of the system of quality control, and the firm's compliance with the
system of quality control based on our review.
Our review was conducted in accordance with standards established by the Peer Review Board of the
AICPA. In performing our review, we read required representations from the firm, interviewed firm
personnel and obtained an understanding of the nature of the firm's accounting and auditing practice, and
the design of the firm's system of quality control sufficient to assess the risks implicit in its practice. Based
on our assessments, we selected engagements and administrative files to test for conformity with professional
standards and compliance with the firm's system of quality control. The engagements selected represented
a reasonable cross-section of the firm's accounting and auditing practice with emphasis on higher -risk
engagements. The engagements selected included among others, audits of Employee Benefit Plans and
engagements performed under Government Auditing Standards. Prior to concluding the review, we
reassessed the adequacy of the scope of the peer review procedures and met with firm management to discuss
the results of our review. We believe that the procedures we performed provide a reasonable basis for our
opinion.
In performing our review, we obtained an understanding of the system of quality control for the firm's
accounting and auditing practice. In addition, we tested compliance with the firm's quality control policies
and procedures to the extent we considered appropriate. These tests covered the application of the firm's
policies and procedures on selected engagements. Our review was based on selected tests therefore it would
not necessarily detect all weaknesses in the system of quality control or all instances of noncompliance with
it. There are inherent limitations in the effectiveness of any system of quality control and therefore
noncompliance with the system of quality control may occur and not be detected. Projection of any
evaluation of a system of quality control to further periods is subject to the risk that the system of quality
control may become inadequate because of changes in conditions, or because the degree of compliance with
the policies or procedures may deteriorate.
In our opinion, the system of quality control for the accounting and auditing practice of McDirmit, Davis &
Company, LLC in effect for the year ended June 30, 2005, has been designed to meet the requirements of
the quality control standards for an accounting and auditing practice established by the AICPA and was
complied with during the year then ended to provide the firm with reasonable assurance of conforming with
professional standards.
PROPOSAL FOR AUDIT SERVICES TO
THE CITY OF OCOEE, FLORIDA
PROFILE OF THE FIRM - Continued
Management Advisory Services
Our experience in governmental auditing has led to the development of efficient procedures that
provide various client benefits. Our services provide our clients with a wide range of knowledge,
confidence, and helpful management advice. In addition, our firm is experienced with system
analysis, both manual and automated. As a result of the size and variety of our clients, we are
continually in contact with both manual and automated accounting systems. We have provided
management advisory services to a number of our clients to their satisfaction. Our management
advisory services have included the following:
Utility and franchise tax revenue audits.
2. Bond financing and comfort letters.
3. Water and wastewater rate studies.
4. Arbitrage calculations.
5. Assistance in selection, implementation and operation of computer systems.
6. Fixed asset accounting.
7. Consultation and analysis in valuation for sale or purchase of water and wastewater utilities.
8. Detailed internal control studies and evaluations of accounting systems.
9. Assistance in preparation of Comprehensive Annual Financial Reports for recognition by the
Government Finance Officers Certificate of Achievement Program.
10. Office procedure and efficiency reviews.
Continuing Education
McDirmit Davis & Company, LLC is committed to the personal and professional growth of its staff. Our
firm requires an annual minimum of 40 hours of continuing professional education for each staff
member.
Our governmental audit staff complies with the continuing education requirements of the State of
Florida, the Governmental Accountability Office (GAO), and Governmental Auditing Standards (the
Yellow Book).
As a result of our governmental experience, our staff has taught classes or lectured on various topics.
We offer "in-house" education courses for our staff, which at times, our clients have attended. In
addition, we would be happy to teach seminars for the benefit of the City's accounting staff.
RESUMES
RESUME OF
KELLY D. LEARY, C.P.A.
ENGAGEMENT STOCKHOLDER
Ms. Kelly Leary received her Bachelor of Science degree with a major in accounting from the
University of Hawaii. She has over twenty-five years of experience in public accounting, primarily
in auditing.
Ms. Leary presently serves on the State and Local Government Committee for the Florida Institute
of CPA's. As a committee member, Ms. Leary is chairman of the subcommittee that has revised
Compliance Auditing in Florida, an FICPA Practice Aid. Ms. Leary is also qualified to perform
quality reviews of other CPA firms in accordance with standards established by the American
Institute of Certified Public Accountants and she has performed quality reviews of CPA firms
performing governmental audits.
Ms. Leary served on the Auditor General's Auditor Selection Task Force that recommended
changes to the local government auditor selection requirements contained in Section 218.391,
Florida Statutes.
Ms. Leary has been a speaker for the past few years at the FICPA State and Local Government
Conference. Ms. Leary has also recently had several articles published in the Florida CPA Today
relating to state and local governments, including an article on Single Audits, and an article on
pension plans.
Ms. Leary is also a director and treasurer on the Board of Directors of the Fairwinds Credit Union,
a nonprofit organization with over one billion in assets.
Ms. Leary's governmental background includes eight years of experience on the Brevard County,
Florida audit. She managed the Brevard County audit for several years. She also worked on the
audits of the following municipalities and governmental entities:
City of Oviedo, Florida
City of Winter Springs, Florida
City of Ocoee, Florida
City of Tavares, Florida
City of Lake Mary, Florida
City of Belle Isle, Florida
City of Clermont, Florida
City of Edgewater, Florida
City of Mascotte, Florida
City of Longwood, Florida
Town of Windermere, Florida
City of Palm Coast, Florida
Sanford Airport Authority
Ms. Leary has performed Single Audits for several of the governmental entities listed above. In
addition, she has a good understanding of the ADG software because of her experience auditing
the City of Ocoee for the past several years.
7
RESUME OF
KELLY D. LEARY, C.P.A.
ENGAGEMENT STOCKHOLDER - Continued
During the past three years, Ms. Leary has attended the following governmental continuing
professional education courses:
Course Title
Credit Hours
Intermediate Auditing of Federal, State and Local 8
Compliance Requirements (Single Audit) Governmental Accounting Principles & Financial Reporting 16
2
Florida GFOA Annual Conference 32
State & Local Government Accounting Conference
Because of her expertise, Ms. Leary has also taught several governmental courses on Single
Audit, long-term debt, and arbitrage. In addition to the above specific governmental courses, she
has attended courses sponsored by both the American and Florida Institute of Certified Public
Accountants relative to workpaper preparation and review, accounting and auditing update,
supervisory skills, and various federal tax seminars.
RESUME OF
ELDEN G. McDIRMIT, C.P.A.
REVIEW STOCKHOLDER
Mr. Elden McDirmit received his Bachelor of Science degree with a major in accounting from the
University of Central Florida. During the last twenty-five years, Mr. McDirmit has received 500 hours
of formal training from the AICPA or AICPA-sponsored organizations in the governmental area.
His experience has included planning, supervision, final review responsibilities and report preparation
of various federal grant and governmental audit engagements.
Mr. McDirmit is active as a national review team member for the GFOA's "Certificate of Achievement
for Excellence in Financial Reporting" program. As a review team member, Mr. McDirmit reviews
and evaluates financial reports submitted by cities and counties to determine whether the financial
reports meet the stringent requirements to receive the GFOA's prestigious award. Participating as a
review team member, Mr. McDirmit has demonstrated his expertise in governmental accounting and
auditing.
Mr. McDirmit has also received the American Institute of CPA's prestigious "Certificate of Educational
_ Achievement". This program consists of attending 64 hours of classroom education related to
governmental accounting and auditing and successfully passing 4 examinations. Mr. McDirmit is
also qualified to perform quality reviews of other CPA firms in accordance with standards established
by the American Institute of Certified Public Accountants.
Mr. McDirmit served for the past eight years as Chairman of the Orange County Housing Finance
Authority (the Housing Authority) which has the authority to issue revenue bonds to address the
housing needs of Orange, Seminole, Lake and Osceola counties. The Housing Authority has
approximately $800 million in assets. Because of this involvement, Mr. McDirmit has an excellent
understanding of local government operations and bond financing.
Mr. McDirmit is a member of the American Institute of Certified Public Accountants and the Florida
Institute of Certified Public Accountants, an associate member of the Governmental Finance Officers
Association, and is active as a board member in other charitable and civic organizations.
His specific government assignments have included:
City of Ocoee, Florida
City of Tavares, Florida
City of Belle Isle, Florida
City of Clermont, Florida
City of Edgewater, Florida
City of Lake Mary, Florida
City of Mascotte, Florida
Town of Windermere, Florida
City of Palm Coast, Florida
City of Winter Springs, Florida
Osceola County Housing Financing Authority
Sanford Airport Authority
N
RESUME OF
ELDEN G. McDIRMIT, C.P.A.
REVIEW STOCKHOLDER - Continued
In the past three years, Mr. McDirmit has attended the following governmental continuing
professional education courses:
Course Title
Credit Hours
Government Accounting & Auditing Update 8
Governmental Accounting Principles & Financial Reporting 16
Performing Single Audits 16
Single Audit Sampling and Internal Control Issues 8
GASB 34 Accounting Conference 8
In addition to the above specific governmental courses, he has attended courses sponsored by both
the American and Florida Institutes of Certified Public Accountants relative to audit sampling, audit
workpapers, review of auditing pronouncements, and various federal tax seminars.
10
RESUME OF
CHRISTOPHER S. McDIRMIT, C.P.A.
AUDIT MANAGER
Mr. Christopher McDirmit received his Bachelor of Science degree with a major in accounting from
the University of Central Florida in 2000. He completed his Masters of Business Administration
(MBA) at the University of Central Florida in 2001.
Mr. McDirmit is a certified public accountant with over seven years experience in auditing. His
experience has included planning and supervision for several non-profit and governmental audit
engagements.
Mr. McDirmit is a member of the American Institute of Certified Public Accountants, the Florida
Institute of Certified Public Accountants, an associate member of the Governmental Finance Officers
Association, and is active as a board member in other charitable and civic organizations. He
currently serves on the William R. Boone High School Foundation Board, where he attended high
school.
His specific government assignments have included:
City of Edgewater, Florida
Town of Windermere, Florida
City of Mascotte, Florida
Sanford Airport Authority
City of Tavares, Florida
City of Clermont, Florida
City of Longwood, Florida
City of Oviedo, Florida
City of Belle Isle, Florida
City of Lake Mary, Florida
City of Winter Springs, Florida
In the past three years, Mr. McDirmit has attended the following governmental continuing
professional education courses:
Course Title
Credit Hours
Government Accounting & Auditing Update
S
Governmental Accounting Principles & Financial Reporting
16
Performing Single Audits
16
2
Latest Techniques and Trends in Effective, Quality Accounting
Auditor General Update
2
2
Capital Asset Accounting
8
GASB 34 Accounting Conference
In addition to the above specific governmental courses, he has attended courses sponsored by both
the American and Florida Institutes of Certified Public Accountants relative to audit sampling, audit
workpapers, review of auditing pronouncements, and various federal tax seminars.
11
RESUME OF
TAMMY CAMPBELL, C.P.A.
AUDIT SENIOR
Ms. Tammy Campbell received her Bachelor of Science degree with a major in accounting from the
University of Central Florida in 2003. She completed her Masters of Science in Taxation (MST) at
the University of Central Florida in 2005.
Ms. Campbell is a certified public accountant with over four years experience in auditing. Her
experience has included planning and fieldwork for several non-profit and governmental audit
engagements.
Ms. Campbell is a member of the American Institute of Certified Public Accountants, the Florida
Institute of Certified Public Accountants, and an associate member of the Governmental Finance
Officers Association.
Her specific government assignments have included:
City of Edgewater, Florida
Town of Windermere, Florida
Sanford Airport Authority
City of Clermont, Florida
City of Longwood, Florida
City of Oviedo, Florida
City of Belle Isle, Florida
City of Lake Mary, Florida
City of Winter Springs, Florida
City of Ocoee, Florida
In the past three years, Ms. Campbell has attended the following governmental continuing
professional education courses:
Course Title Credit Hours
Government Accounting & Auditing Update
10
19
Governmental Accounting Principles & Financial Reporting
Performing Single Audits
Latest Techniques and Trends in Effective, Quality Accounting
4
2
Auditor General Update
2
2
Capital Asset Accounting
In addition to the above specific governmental courses, she has attended courses sponsored by both
the American and Florida Institutes of Certified Public Accountants relative to audit sampling, audit
workpapers, and review of auditing pronouncements.
12
AUDIT APPROACH
PROPOSAL FOR AUDIT SERVICES TO
THE CITY OF OCOEE, FLORIDA
AUDIT APPROACH
We understand the scope of work to be performed for the City of Ocoee and are committed to
meeting the schedule outlined in the Schedule of Audit Work in the RFP. Our audit will include
four phases, as follows:
Phase 1: Audit Planning
Phase 2: Evaluation and Testing of Internal Controls
Phase 3: Audit Fieldwork
Phase 4: Reporting
Phase 1: Audit Planning
We will meet with staff in various departments of the City to obtain an understanding of the flow of
transactions through your accounting system. This includes understanding your computer
environment in order to comply with the requirements of SAS 94 The Effect of Information
Technology on the Auditor's Consideration of Internal Control in a Financial Statement Audit. We
will also gather information to identify fraud risks as required by SAS 99 Consideration of Fraud in
a Financial Statement Audit.
We will also perform preliminary analytical procedures and compare trends for the current and at
least the two previous years for unusual fluctuations. This will include review of both budget and
actual amounts.
During this planning phase, we will ask management and staff at the City to identify areas of
higher risk as well as other areas that they want us to focus on during our audit.
Phase 2: Evaluation and Testing of Internal Controls and Compliance
During Phase 2, we will evaluate your control policies and procedures to determine if they are
functioning properly in significant transaction classes. Tests of these controls will determine with
reasonable assurance that control procedures are functioning as planned and whether further
testing will be needed. As part of our tests of controls, we will include tests of compliance with
applicable ordinances, and state and federal laws and regulations. In order to determine which
ordinances, laws and regulations to test for compliance, we start by reviewing the FICPA Practice
Aid Compliance Auditing in Florida. We then evaluate which ordinances, laws and regulations
have a direct and material effect on the determination of financial statement amounts. For
example, we would perform tests to determine that the City is complying with Florida Statutes
relating to budgets. Our firm uses a non -statistical approach to testing of controls and compliance.
We will randomly select samples from the significant transaction classes and trace from original
documents through the computer system to the general ledger.
If the City meets the requirement for either a federal or state single audit, we will evaluate internal
controls over Federal Awards Programs and State Financial Assistance. Then we will determine
major programs and perform required tests of compliance and internal controls over compliance.
Sample sizes will be determined based upon our assessment of control risk.
After controls have been documented, evaluated and tested, we will finalize the City's audit plan.
Audit programs will be tailored based upon risk assessments completed for each area.
13
PROPOSAL FOR AUDIT SERVICES TO
THE CITY OF OCOEE, FLORIDA
AUDIT APPROACH - Continued
Phase 3: Audit Fieldwork
Our year-end fieldwork will focus on verifying balances in accounts. For example, we will confirm
cash balances, as well as debt balances with financial institutions. In addition to obtaining audit
confirmations, representation letters and attorney letters, we will perform tests on account
balances using analytical procedures, recalculation and verification. Our firm uses ProSystem fx
Engagement electronic audit software which may allow us to interface with your accounting
system and reduce the time required to transfer your accounting data to a separate software
package. We believe it is important to use analytical review procedures in this substantive phase
of the audit. We compare analytical results to our expectation of what the results should be in
order to determine if additional audit procedures are required.
We will keep the City's management up to date on the progress of the audit and will discuss
preliminary findings and potential problems or opportunities as we encounter them.
Phase 4: Reporting
The audit work is reviewed by the engagement stockholder throughout the engagement. As soon
as we receive the financial statements prepared by the City's finance department, the
engagement stockholder will ensure that amounts in the financial statements agree to the audited
trial balance and workpapers. Once the engagement stockholder review is complete, a second
review of the financial statements is performed by the review stockholder. This second review is
required as part of McDirmit Davis and Company's internal system of quality control and ensures
the City receives the best service possible.
At the completion of both levels or review, we will submit the following draft reports to
management of the City:
• Auditor's report on financial statements;
• Report on internal control over financial reporting and on compliance and other matters
based on an audit of financial statements performed in accordance with "Government
Auditing Standards";
• Management letter, which will offer recommendations to improve internal auditing
controls, administrative efficiencies, and profitability; and
• Report on compliance with requirements applicable to each major program and internal
control over compliance in accordance with OMB Circular A-133 if Single Audit is required.
Once reports have been reviewed by management and approved in final form, we will issue final
reports. We will be available to meet with management to review the reports.
14
PROPOSAL FOR AUDIT SERVICES TO
THE CITY OF OCOEE, FLORIDA
AUDIT APPROACH - Continued
The proposed work plan for the audit is as follows:
Completion Number of
Dates Hours
Interim test of controls and legal compliance:
Kelly Leary, Chris McDirmit (Manager)
and Tammy Campbell (Senior) September 15 48
Substantive testing: Kelly Leary, Chris McDirmit
and Tammy Campbell December 20 144
Review audit workpapers and provide proposed
audit adjustments to City: Kelly Leary and
Elden McDirmit January 15 24
Review CAFR prepared by City and prepare audit
reports: Kelly Leary March 10 32
We agree to meet the above schedule and assist with submission of the CAFR to the GFOA,
including technical assistance to help the City meet the requirements for the GFOA Certificate of
Achievement for Excellence in Financial Reporting. The engagement stockholder and the review
stockholder will be available to attend public meetings for discussion of the financial report.
15
GOVERNMENTAL REFERENCES
PROPOSAL FOR AUDIT SERVICES TO
THE CITY OF OCOEE, FLORIDA
GOVERNMENTAL REFERENCES
References of Governmental Accounting Experience
Scope of Total Engagement
Principal Client Contact Work Hours Stockholder
Ms. Carol Rogers, Fin. Dir
City of Longwood, Florida
175 W. Warren Avenue
Longwood, FL 32750
(386) 424-2471
Ms. Jackie Sova, Fin. Dir.
City of Lake Mary, Florida
100 N. Country Club Road
Lake Mary, FL 32749
(407) 585-1409
Ms. Michele Greco, Fin. Dir.
City of Winter Springs, Florida
1126 E. SR 434
Winter Springs, FL 32708
(407) 327-5960
Mr. Jon Williams, City Mgr
City of Edgewater, Florida
104 N. Riverside Drive
Edgewater, FL 32132
(386) 424-2417
• Annual Financial &
Compliance Audit
(Single Audit) and
preparation of
CAFR
• Received GFOA's
"Certificate of
Achievement"
• Annual Financial &
Compliance Audit
• Received GFOA's
"Certificate of
Achievement"
• Annual Financial &
Compliance Audit
(Single Audit) and
preparation of
CAFR
• Received GFOA's
"Certificate of
Achievement"
• Annual Financial &
Compliance Audit
(Single Audit) and
preparation of
CAFR
• Received GFOA's
"Certificate of
Achievement"
250 Kelly Leary
250 Kelly Leary
300 Kelly Leary
350 Kelly Leary
Years
1991 to
1993
and
1997 to
present
1997 to
present
2000 to
present
2002 to
present
1F
PROPOSAL FOR AUDIT SERVICES TO
THE CITY OF OCOEE, FLORIDA
GOVERNMENTAL REFERENCES
References of Governmental Accounting Experience
Scope of Total Engagement
Principal Client Contact
Ms. Lori Houghton
City of Tavares, Florida
P.O. Box 1068
Tavares, FL 32778-1068
(352) 742-6212
Mr. Larry Williams
City of Belle Isle, Florida
1600 Nela Avenue
Belle Isle, FL 32809
(407) 851-7730
Work Hours Stockholder
• Annual Financial &
Compliance Audit
(Single Audit) and
preparation of CAFR
• . Received GFOA's
"Certificate of
Achievement"
• Utility and Franchise
Tax Audits
• Water & Wastewater
Rate Evaluation
• Annual Financial &
Compliance Audit
and preparation of
CAFR
• Received GFOA's
"Certificate of
Achievement"
Other Governmental References:
Martha Haynie
Orange County Comptroller
201 South Rosalind Avenue
Orlando, Florida 32801
(407)836-5690
Years
250 Elden G. McDirmit 1988 to
present
80 Kelly Leary 1993 to
present
17
PRICE PROPOSAL
PRICE PROPOSAL FORM
RFP #07-004 AUDITING SERVICES
TOTAL ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED'
IN RFP #07-004 FOR FISCAL YEARS ENDING 2007, 2008, 2009:
29,000 00 annually, if subject to Single Audit an.
additional $5,000-M. ,
Twenty-nine thousand dollars & no cents
--------------
(A renewal option for an additional two years may be negotiated -
TOTAL ANNUAL PRICE PROPOSAL ,FOR PREPARATION OF THE COMPREHENSIVE
ANNUAL FINANCIAL REPORT (CAFR), IF REQUIRED:
7,0.00,, 00 annually
Seven thousand dollars & no cents
August 28, '2007
Date
McDirmit Davis & Company, LLC
Company Name
5000-001605
License Number
Elden G. McDirmit; C.P.A.
Authorized Officer (print)
C_Q� ACU
Authorized Signature.
RFP #07-004
REQUIRED SUBMITTALS
12; SUMMARY OF LITIGATION:
Provide a summary of any litigation, claim(s), bid or contract dispute(s) filed
by or against *the proposer in the past five (5) years which is related to the
services that the proposer provides in the regular course of business. The
summary shall state the nature of. the litigation, claim, or contact dispute, a'
brief description of the case, the outcome or projected outcome, and the
monetary amounts involved. If none, please so state.
(Attach additional sheets if necessary)
one.
13. ACKNOWLEDGMENT OF ADDENDA:
Proposer acknowledges receipt of the following addenda:
No. Dated �uqusf a`f, aoa7
No. Dated
No. Dated
RFP #07-004
19
RFP 407-004 COMPANY INFORMATION/SIGNATURE SHEET
FAILURE TO COMPLY WITH THESE RFP INSTRUCTIONS WILL RESULT IN DISQUALIFICATION OF
YOUR PROPOSAL. PLEASE SIGN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND
ALL RFP INSTRUCTIONS AND THAT THE PRICES REFLECTED ON THE "SCOPE OF SERVICES/PRICE
PROPOSAL FORM" ARE ACCURATE AND WITHOUT COLLUSION.
McDirmit Davis & Company, LLC
COMPANY NAME
QA_1�,_ C , A C
aL
AUTHORIZED SIIGNATURE (manual)
Lam% Cte vJ 6 • M C6 ', i
NAME/TITLE (PLEASE PRINT)
(407) 843-5406
TELEPHONE (INCLUDE AREA CODE)
(407) 649-9339
FAX (INCLUDE AREA CODE)
Kleary@mcdirmitdavis.com
E-MAIL ADDRESS
IF REMITTANCE ADDRESS IS DIFFERENT
FROM PURCHASE ORDER ADDRESS,
PLEASE I DICATE BELOW:
605 E. Robinson Street, Suite
STREET ADDRESS 635
Orlando, FL 32801
CITY STATE ZIP
FEDERAL ID# 2 6— 0 0 0 4117 ,
Individual X. Corporation Partnership Other (Specify)
`y f� D%
7
Sworn to and subscribed before me this ! day of A �q t- -� , 20
Personally Known V/ or
Produced Identification
Notary Public - State of F L—
(Type of Identification) County of crag
Dr
Signature of Notary Public
Printed; typed or stamped
Commissioned name of Notary Public
LISAA.FRANCOFORTE
RFP #07-004
;ion'"YP"&;A; Notary Public - State of Florida
My Commission Expires Mar 7, 2011
Commission 9 DD 648364
"'It ;1, Banded TtwouP National Notary Assn.
20