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HomeMy WebLinkAboutItem VI (D) - Discussion and Authorization to Proceed with Audit Selection for Fiscal Years 91, 92, 93 „ . AGENDA 5-07-91 Item VI D r "CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE” OC r ee LESTER DABBS,JR. �• j ° CITY OF OCOEE Ru COMMISSIONERS Cl. 150 N.LAKESHORE DRIVE C., O OCOEE FLORIDA 34761 PAUL W.FOSTER (407)656-2322 VERN COMBS �,. , SAM WOODSON ~'�i �o� .,° MEMORANDUM oF CITY MANAGER ELLIS SHAPIRO TO: The Honorable Mayor and Board of City Commissioners FROM: Ellis Shapiro, City Manager DATE : May 3 , 1991 RE : AUDIT SELECTION - FY 91 , FY 92, FY 93 In order to fulfill the requirements of Article III , Section 10 of the Ocoee City Charter, it is necessary to begin the process for selection of an auditing firm for the Fiscal Years 91 , 92 and 93 . Attached are ( 1 ) the request for proposal and ( 2) the agreement for these services . The schedule for completing this process is as follows: May 12 Newspaper Advertisement May 20 Pre-Bid Conference Community Center, 10 : 00 a .m. to 11 : 30 a .m. May 31 Bid Opening June 18 Ranking to City Commission July 16 Award An audit selection committee is needed and would include: Mayor Dabbs, Montye Beamer, Ivan Poston, Jim Shira , Ray Brenner, and Martha Gianitsis . From its review and evaluation this committee would select at least three ( 3 ) proposals and return to the City Manager and City Commission with its recommendation (June 18 ) . If this selection method is acceptable , a motion to proceed would be in order. If the Mayor or City Commission would like a different member of the City Commission on the selection committee or a change in the selection process , a motion to make the change would be in order. Respectfully Submitted , // ES:MB: fdg • • • REQUEST FOR EXPRESSIONS OF INTEREST TO AUDIT THE CITY OF OCOEE GOVERNMENT The City of Ocoee requests "Expressions of Interest" from Certified Public Accountants licensed to practice in the State of Florida. Experience is required in audits of State or Local Government units for the performance of an examination of the financial statements and records of the City. These examinations are for the purpose of expressing an opinion on the fairness with which financial statements and records present the financial position, results of operations, changes in financial position and fund balance • for the City. The examinations are to determine whether operations were properly conducted in accordance with generally accepted governmental accounting principles, legal , regulatory, and bond requirements. The Audits will be performed for Fiscal Year 1991 , Fiscal Year 1992, and Fiscal Year 1993. A. INSTRUCTIONS FOR EXPRESSIONS OF INTEREST Sealed proposals will be accepted at the City • Manager's Office, 150 N. Lakeshore Drive, Ocoee, until 1 :30 PM, Friday, May 31 , 1991 . "Expressions of Interest", in not less than an original and nine (9) copies, shall be filed with the City Manager no later than 1 :30 PM Friday, May 31 , 1991 and will be publicly opened at 2:00 PM (local time). All late submittals will be returned to sender, unopened. Please mark the outside of the sealed bid: 91-05-01 Audit Services Montye E. Beamer, Director of Administrative • Services 150 N. Lakeshore Drive Ocoee, Florida 34761 The following must be included in the bid: 1 . Qualifications of the Auditor a) Professional qualifications of firm and resumes of partners and managers to be assigned to the audits b) Include three references as evidence of experience in governmental accounting and auditing in the State of Florida c) Total staff available for the audits d) Address of the office from which audit work will be administered 2. Technical Approach a) An expression of agreement to meet or exceed the performance specifications stated in Section "C" of this document b) A preliminary schedule for performing key phases of the audits c) A brief description of the audit process to be followed including approach to staffing, scheduling and coordination of work involving various agencies. B. GENERAL INFORMATION The existing municipality of the City of Ocoee, in the • county of Orange, is incorporated under the laws of Florida with all the powers incident thereto. The fiscal year 90/91 Budget is $8,890,150.00 (all adopted funds). The City will make available copies of the latest audit reports, management letters, budgets and all financial records for the appropriate fiscal year. Attachment "A" describes the accounting system in use, bank relationships and other information pertinent to the audit. No internal audit staff is available to assist the audit team. C. PERFORMANCE SPECIFICATIONS 1 ) The audits shall be performed in accordance with the applicable requirements of: a) Section 11 .45 Florida Statutes (1989) and any amendments thereto b) Regulations of State Department of Banking and Finance c) Rules adopted by Auditor General for form and content of City audits (Chapter 10.550 Rules of the Auditor General ) d) Audits of State and Local Government Units - American Institute of Certified Public Accountants e) "Single Audit Act" Public Law No. 98-502 (1984) and any amendments thereto and the OMB Circular "Audit Requirements for State and Local Governments" (A128) 2) The audits shall be financial audits as defined in Section 11 .45, 1(b) Florida Statutes (1989) and shall cover three (3) fiscal years ending September 30, 1991 , 1992, & 1993. These audits shall be conducted in accordance with generally accepted auditing standards. 3) Complete reports of all City-wide audits shall be submitted to the Board of City Commissioners no later than January 31 of the succeeding fiscal year. The Water & Wastewater Enterprise report is required within 90 days of the end of the fiscal year. 4) The audit reports for the Board of City Commissioners shall contain the opinions of the auditor on the financial statements, a statement of negative assurance of compliance with bond covenants, and legal compliance. 5) The auditors shall submit no later than January 31 of the succeeding fiscal year for the Board of City Commissioners: a) A written draft report of any weaknesses found in internal controls b) A management letter which shall identify management weaknesses observed, assess their effect on the financial management and recommend corrective action and final management letters to the Board of City Commissioners which are to be submitted to the Auditor General with the City audit shall include responses to such comments submitted by the City. 6) The auditors shall provide fifty (50) copies of the combined Citywide audit, including the appropriate combining statements, and fifty (50) copies of the Water•& Wastewater Audit. 7) The partner in charge of the audit and the audit manager shall be available to the City, for no additional fee, to attend up the three (3) public meetings for discussion of the audit. 8) The auditor shall , without charge, make available his/her work papers to any Federal or State Agency upon request and in accordance with Federal or • State Law and Regulations. 9) Fees will be for the complete audit as well as report on internal controls and management letter. 10) The City of Ocoee has been awarded the GFOA Certificate of Achievement for excellence in financial reporting for each Fiscal Year beginning • in 1988. Firms submitting "Expressions of Interest" are advised that the City intends to continue to conform to the high reporting standards of the program and insists on dedicated assistance from the audit team to accomplish this goal . D. EVALUATION PROCEDURES: • The Audit Selection Committee will evaluate proposals and select not less than three (3) proposals. The points to be considered by the Committee in evaluating proposals include but are not limited to: 1 ) The ability of professional personnel 2) Past performance • • 3) Willingness to meet time requirements 4) Location 5) Recent, current, and projected workloads of • the firms 6) Volume of work previously awarded to this firm Oral presentations will be made only at the request of the Committee. The Committee expects to present a listing of its recommended 1st, 2nd, and 3rd ranked • firms to the City Manager and Board of City Commissioners no later than June 18, 1991 . At no time will the proposer meet with any member of either the Board of City Commissioners, Audit Selection Committee, or Negotiating Team, except to make formal presentation interview. Firms tentatively selected to be presented to the Negotiating Team must furnish a statement of compliance with the provisions of this paragraph. Falsification of that statement will render a firm's proposal not acceptable and they will be denied further consideration. E. PRE-BID CONFERENCE On May 20, 1991 representatives of firms desiring to submit proposals will meet with City representatives to discuss terms and conditions of the proposal and contract. Attendance at this pre-bid conference will be mandatory . . for all firms who submit proposals. The meeting will be held at the Ocoee Community Center, 125 N. Lakeshore Drive, Ocoee, Florida 34761 , from 10:00 AM to 11 :30 AM. F. NEGOTIATIONS ' A Negotiating Team appointed by the Board of City Commissioners will negotiate with the number 1 ranked firm. Procedures for negotiations will be set by the Board of City Commissioners. G. ON-SITE INSPECTIONS s The City Manager will present the final recommendation to the Board of City Commissioners at their regularly scheduled meeting July 16, 1991 . • Proposers may make on-site inspection of any department in connection with preparing proposals providing that approval of the City Manager is obtained prior to the the inspection. Time and extent of such inspections shall • be set by the head of the department. H. CONTRACTS, BILLINGS, AND PAYMENTS The Board of City Commissioners expects to sign a contract with the successful firm for three (3) years. Progress payments may be billed monthly for work accomplished in the previous month. Ten percent (10%) retainage will be withheld on each invoice presented until work is completed per Section C (3) of this document. I. ADDITIONAL INFORMATION Requests for additional information should be addressed to: City of Ocoee FINANCE DEPARTMENT 150 N. Lakeshore Drive Ocoee, Florida 34761 (407) 656-2322 SCHEDULE A LEGAL BASIS: Florida Statute 11 , Section 45 LOCATION & ACTIVITIES: City Hall , 150 N. Lakeshore Drive, •• Ocoee, FL 34761 EMPLOYEES: 152 • FUNDS: One (1 ) General Fund, seven (7) Special Revenue Funds, eleven (11 ) Capital Project Funds, three (3) Debt Service Funds, three (3) Trust Agency Funds, three (3) Enterprise Funds for a total of twenty- eight (28) Funds. ACCOUNTING: NCR System 10,000, model 65 with NCR programs for accounting, payables, utilities, fixed assets, occupational licenses, and payroll . ACCOUNTING STRUCTURE: State Accounting System, modified accrual . OPERATING BUDGET: All 0 & M Funds - $8,890,150.00. . PROPERTY: NCR fixed asset system - historical basis. • CASH: Balanced daily. Cash receipt and disbursements reports produced monthly. BANK ACCOUNTS: Orange Bank - pooled checking account and CD's Barnett Bank - pooled checking account and CD's State Board of Administration - Investments RECONCILED: Monthly • PURCHASING & PAYROLL: Encumbrance Purchasing System on NCR main frame. Payroll also on NCR main frame with payroll checks issued on bi-weekly basis. LAST AUDIT: 89/90, McDirmitt, Davis, Lauteria & Co. P.A. ASSISTANCE: Will be provided as needed, to the extent that office activity will allow. RETIREMENT: City of Ocoee Defined Benefit Pension Plan & Trust. INSURANCE: Issued through Brown & Brown, Inc. as insurance • agent of record. INFORMATION: Finance Department 150 N. Lakeshore Drive Ocoee, FL 34761 AGREEMENT FOR AUDITOR SERVICES 91-05-01 THIS AGREEMENT is made and entered into this day of , 19 , by and between the City of Ocoee, a political subdivision of the State of Florida, whose address is 150 N. Lakeshore Drive , Ocoee, Florida, 34761 , hereinafter referred to as "CITY" , and duly authorized to conduct business in the State of Florida, and whose address is , hereinafter referred to as "AUDITOR" . WITNESSET H: In consideration of the mutual terms and conditions , promises , convenants and payments hereinafter set forth, CITY and AUDITOR agree as follows : SECTION 1 . SCOPE OF AUDIT. AUDITOR shall conduct an audit of the records , accounts , and procedures of all CITY agencies. Said audit shall be performed as follows: (a) AUDITOR shall audit CITY' s financial statements in order to express an opinion on the fairness with which said statements present the results of CITY operations , the financial position of CITY and the changes thereto in accordance with generally accepted accounting principles and an audit of selected financial transactions to determine, for the transactions selected, if such transactions were made in accordance with all applicable legal and regulatory requirements , including Federal and State laws and regulations. It shall be the obligation of AUDITOR to prepare said financial statements . CITY reserves the right, at its option, to prepare said statements and to delete said obligation from that of AUDITOR. Said election by CITY shall only be effective if exercised in writing by September 1 , of the applicable fiscal year. The AUDITOR shall prepare separate reports on the financial statements of Water, Wastewater, and Sanitation Enterprise Funds in addition to the CITY Audit. The Water, Wastewater, and Sanitation Enterprise Fund reports shall be the responsibility of the AUDITOR regardless of the CITY' s election to prepare the CITY Financial Statements . (b) The audit is to be conducted in accordance with the provisions of Section 11 . 45 , Florida Statutes ( 1989 and successor provisions ) and with generally accepted audited standards ; with the National Committee on Governmental Accounting (NCGA) reporting requirements outlined in Governmental Accounting , Auditing and Financial Reporting , and any modifications or amendments thereto ; with the Rules of the Auditor General of the State of Florida; with the AICPA Industry Guide for Audits of State and Local Governments; with applicable pronouncements of the Governmental Accounting Standards Board; the Financial Accounting Standards Board; and with all other applicable laws, rules , and regulations . (c ) AUDITOR shall utilize the "single audit" concept in compliance with Federal OMB Circular A-128 , which enumerates Uniform Administration Audit Requirements for Grants-in-Aid to local governments . (d) AUDITOR shall observe the adequacy of internal control . If weaknesses are noted, appropriate recommendations shall be reviewed with the City Manager and the Director of Administrative Services prior to inclusion in the final audit report . (e) AUDITOR shall review the audit program with CITY officials to be designated by CITY, identifying the records to be audited and procedures to be followed. CITY reserves the right to require AUDITOR to include in the audit additional records or procedures which are generally accepted by the standards set out in Section 1 (b) herein. ( f ) Within thirty ( 30 ) days of the conclusion of AUDITOR' s audit of CITY, AUDITOR shall discuss with the City Manager or his designee , all of AUDITOR' s comments which may be included in the final audit report. If the City Manager or his designee is not available for such discussion during such period, delivery of the AUDITOR' s written comments to the City Manager shall be acceptable in lieu of such discussion. Upon completion of the final management letters , AUDITOR shall supply two ( 2 ) copies thereof to the City Manager. ( g ) If AUDITOR is unable to state an unqualified opinion on any aspect of the audit , AUDITOR shall state the reasons for said qualification. SECTION 2 . TERM. The term of this Agreement shall commence upon execution of the Agreement by CITY and shall run through audits of the fiscal years ending September 30 , 1991 , 1992 , and 1993 . SECTION 3 . CONTENTS OF THE AUDIT REPORT. Subject to applicable professional requirements, the final audit report shall be a single report and shall include an index, a scope and opinion letter; the general purpose financial statements reported on, with related foccnotes; a report on supplemental data; the individual financial statements of each of CITY' s funds and any supplemental data; and the AUDITOR' s comments in a management letter which shall include , but not limited to, statements regarding the following items investigated within the scope of the audit: (a) Whether irregularities reported in the previous year' s audit have been corrected and whether recommendations made therein have been followed; (b) Recommendations to improve CITY' s present management , accounting procedures and internal control ; (c ) Any violation of any laws , regulations and rules pursuant to Section 1 ( a) of this Agreement applicable to the CITY, including , but not limited to illegal expenditures; (d) Any improper or inadequate accounting procedure or failure to record financial transactions properly discovered within the scope of the audit ; (e ) Whether the financial statement filed with the Department of Banking and Finance as required by Section 218 . 32 , Florida Statutes ( 1989 and successor provisions thereto) is in agreement with the annual audit report for said fiscal year, and if not AUDITOR shall specify any and all significant differences ; ( f) Comments on report made by representatives of CITY; (g ) All other inaccuracies, irregularities, shortages, and defalcations which came to the AUDITOR' s attention. SECTION 4 . AUDIT SCHEDULE. (a) AUDITOR shall commence performance of the audit on or before July 1 of the year being audited and shall complete said audit no later than January 31 of the succeeding fiscal year. AUDITOR shall submit a draft audit report to CITY by the above-stated completion date . The draft report shall be reviewed and commented upon by representatives of the CITY as designated by the City Manager. Said review and return of comments shall be completed withing twenty ( 20 ) days following receipt by CITY of the draft report. AUDITOR shall include the comments of the CITY' s representatives in the final audit report. Fifty ( 50 ) copies of the final audit report shall be delivered by AUDITOR to CITY, at AUDITOR' s expense , on or before February 28 next following the aforesaid January 31 . AUDITOR,' at its expense; shall deliver to CITY fifty ( 50 ) copies of the Water, Wastewater, and Sanitation Enterprise Report within ninety ( 90 ) days of the end of the fiscal year. (b) In the event there are delays caused by actions or omissions of CITY that delay AUDITOR' s performance pursuant to the audit schedule , CITY will grant AUDITOR reasonable extensions of the schedule. In other cases , upon a finding of good cause , the Board of City Commissioners may extend said schedule upon written request by AUDITOR. However, in the performance of all services under this Agreement , dates for preparation, submission and review of audits as established by the Auditor General of the State of Florida and any other applicable laws , regulations , and rules shall prevail over this Section and shall be complied with. SECTION 5 . AUTHORIZATION TO DISCLOSE TO LAW ENFORCEMENT AGENCIES. CITY hereby authorizes AUDITOR to disclose , at any time, all findings of suspected fraud or embezzlements to the appropriate law enforcement agency. Upon such disclosure , AUDITOR shall notify, in writing , the Mayor of such action. SECTION 6. USE OF OPERATIONAL SYSTEMS AND COMPUTER SOFTWARE. AUDITOR shall obtain written permission of CITY prior to utilization of any part of CITY' s computer systems and software. AUDITOR agrees that use of said systems will be controlled by CITY so as not to disrupt the ongoing daily operations of CITY. SECTION 7 . PARTICIPATION OF CITY STAFF. CITY' s staff participation in the audits will be limited to activities within the normal course of business and that any assistance with the audits by CITY staff shall be limited to matters within the scope of each CITY employee ' s work responsibility. The minimal level of participation as set out herein shall in no way relieve AUDITOR from responsibilities for the conduct of the audit . SECTION 8. COMPENSATION. (a) The CITY will pay the AUDITOR for services performed under this Agreement on the basis of actual hours worked multiplied by the specific hourly rates set forth in subsection (c ) below, not to exceed the maximum hours and/or FISCAL YEAR 1991/92 Class Hourly Rate Partner $ Manager Senior Staff Typist FISCAL YEAR 1992/93 Class Hourly Rate Partner $ Manager Senior Staff Typist (d) In the event CITY elects to prepare the required financial statements CITY shall exercise the option reserved in Section 1 (a) herein and AUDITOR shall be released from its obligations to prepare said statements for that fiscal year. In no event shall AUDITOR be compensated for the preparation of said statements after exercise of the option by CITY in accordance with Section 1 (a) herein. Nothing stated in this Section shall be construed to release AUDITOR from any other obligations entered into in this Agreement . (e ) In the event that unforeseeable conditions are encountered which necessitate the extension of the audit beyond the scope of audit set forth in Section 1 of this Agreement , the AUDITOR shall immediately notify the CITY in writing of such conditions , providing a detailed explanation of said conditions and why additional fees are necessary. The Board of City Commissioners shall approve or deny any such requests for additional fee due to an increase in the scope of the audit prior to AUDITOR incurring any significant maximum fee set forth in subsection ( b) below. (b) If the CITY does not exercise its option to prepare financial statements as provided in Section 1 (a) of this Agreement , the following are the maximum hours and fees established for the audit of Fiscal Years 1990/91 , 1991/92 , and 1992/93 . Fiscal Year Maximum Hours Maximum Fee 1990/91 1991/92 1992/93 If the CITY exercises its option to prepare financial statements as provided in Section 1 (a) of this Agreement, the following are the maximum hours and fees established for the audit of Fiscal Years 1990/91 , 1991/92 , and 1992/93 : Fiscal Year Maximum Hours Maximum Fee 1990/91 1991/92 1992/93 (c ) The following are the hourly rates to be charged by the AUDITOR by individual class of audit personnel : FISCAL YEAR 1990/91 Class Hourly Rate Partner $ Manager Senior Staff Typist increase in cost. Failure of AUDITOR to obtain CITY' s written approval for additional work shall constitute a waiver of AUDITOR' s right to additional compensation for performance of said work. All adjustments approved by the Board of City Commissioners shall be set forth in writing and become a part of this Agreement. ( f). There shall be no reimbursement for out-of-pocket expenses , of any kind, under this Agreement. SECTION 9. TERMS OF PAYMENT. (a) Payments shall be made to the AUDITOR when requested as work progresses, but not more frequently than once monthly, for actual hours worked in the preceding month. AUDITOR shall invoice the CITY providing detailed information on actual hours worked by staff classification at the rates set forth in Section 8 , or as subsequently adjusted. Upon approval of such payment request by CITY, payment shall be made to AUDITOR within thirty ( 30 ) days, for ninety percent ( 90%) of the amount , unless CITY determines the work is substantially complete and the amount retained is considered to be in excess , in which case , CITY may, at its discretion, release all or a portion of the retainage. (b) AUDITOR shall render to CITY, at the close of each calendar month, an itemized invoice properly dated, describing the services rendered, the cost of the services , the name and address of the AUDITOR, Contract Number and all other information required, if any, by this Agreement. The original invoice shall be sent to : Finance Director City of Ocoee 150 N. Lakeshore Drive Ocoee , Florida 34761 A duplicate copy of the invoice shall be sent to: Director of Administrative Services City of Ocoee 150 N. Lakeshore Drive Ocoee, Florida 34761 (c ) Upon satisfactory completion of the work required hereunder or any supplements thereto, and, upon acceptance of the work by the CITY, the AUDITOR may invoice the full amount of compensation due under the terms of this Agreement less the amount( s ) already paid by the CITY. The CITY shall pay the AUDITOR within thirty ( 30 ) days of receipt of such invoice . (d) The AUDITOR shall , upon request by the CITY, provide the CITY with a breakdown of the actual costs by fund and/or agency or whatever reasonable basis as requested by the CITY. (e ) The AUDITOR agrees to maintain all books, documents , papers, accounting records , and other evidences pertaining to work performed under this Agreement in such a manner as will readily conform to the terms of this Agreement and to make such materials available at its office at all reasonable times during the agreement period and for five ( 5 ) years from the date of final payment for the final audit or inspection by the CITY. AUDITOR acknowledges CITY' s obligations under Chapter 119 , Florida Statutes, to release public records to members of the public upon request. AUDITOR acknowledges that CITY is required to comply with Chapter 119 , Florida Statutes , in the handling of materials created under this Agreement and that said statute controls over the terms of this Agreement . ( f) In the event any such audit or inspection conducted after final payment , but within the period provided for in subsection (e ) of this section reveals any overpayment by the CITY under the terms of this Agreement , the AUDITOR shall refund such overpayment to the CITY withing thirty ( 30 ) days of notice by the CITY. SECTION 10 . KEY PERSONNEL. In the event that key personnel (defined as supervisor or manager) performing said audit are to be replaced, CITY reserves the right to approve or disapprove any replacement personnel . Failure by CITY to exercise said right for any one event will not constitute a waiver of CITY' s right . SECTION 11 . AVAILABILITY FOR CONSULTATIONS. AUDITOR shall be available for consultations and discussions with CITY, at CITY' s request, relating to the audit reports submitted for a period of ninety days after delivery of final audit report to CITY. AUDITOR shall also attend up to three ( 3 ) meetings of the Board of City Commissioners during which the final audit report and Water, Wastewater, and Sanitation Enterprise Report for the applicable fiscal year are presented to said Board. SECTION 12 . ADDITIONAL SERVICES. The CITY may request additional services at any time from the AUDITOR. (a) To the extent that such services are an extension of the scope of the audit( s) as a result increased regulatory requirements , the addition of funds to be audited, or any other reason beyond the control of the AUDITOR, such extra services shall be compensated based upon actual hours worked at the appropriate rates by staff classification. (b) To the extent that such services are separate from the scope of the audit but essential to the overall financial management of the CITY, compensation for such services shall be subsequently negotiated by the CITY and the AUDITOR on an actual hours worked or lump sum fee basis, at the discretion of the CITY. (c ) All requests for additional services,which result in an increase in the maximum hours and/or maximum fees set forth in Section 8 of this Agreement , shall be approved by Board of City Commissioners . All adjustments shall be set forth in writing and be attached to and become a part of this Agreement when approved and executed by the parties in the same manner as this Agreement. SECTION 13 . PERFORMANCE BOND. (a) AUDITOR shall furnish to CITY and maintain throughout the life of this Agreement a performance bond amount equal to 100% of the maximum fee amount for the applicable fiscal year. Said bond shall be written by a surety company acceptable to CITY and licensed and authorized to do business in the State of Florida. (b) The bond shall be accompanied by a duly authenticated or certified document , in duplicate , evidencing that the person executing the bond in behalf of the Surety had the authority to do so on the date of the bond. In the usual case, the conferring of that authority has occurred prior to the date of the bond and the document showing the date of appointment and enumeration of powers of the person executing the bond is accompanied by a certification that the appointment and powers have not been revoked and remain in effect. The date of that certification cannot be earlier than the date of the bond. The bond shall be dated not earlier than the Agreement. SECTION 14 . ADDITIONAL BONDS. It is mutually agreed by the parties that , if, at any time after the execution of this Agreement, the CITY shall deem the Surety or Sureties to be unsatisfactory, or, if for any reason, the Payment Bond or Performance Bond ceases to be adequate to cover the performance and payments of the work, the AUDITOR shall , at his expense, and within thirty ( 30 ) days after receipt of Notice from the CITY to do so , furnish additional bonds in such form and amounts with such Sureties as shall be satisfactory to the CITY. In such event, no further payment to the AUDITOR shall be deemed due under this Agreement until such new or additional security for the faithful performance and for payment of labor and materials of the work shall be furnished in a manner and form satisfactory to the CITY. SECTION 15 . RESPONSIBILITY OF THE AUDITOR. (a) The AUDITOR shall be responsible for the professional quality, technical accuracy, and the and the coordination of all professional services furnished by the AUDITOR under this Agreement. AUDITOR shall at all times assign competent and qualified personnel to perform the services required herein. The AUDITOR shall , without additional compensation, correct or revise any errors or deficiencies in the final audit report. (b) Neither the CITY' s review, approval of, acceptance of, nor payment for any of the services required under this Agreement shall be construed to operate as a waiver of any rights under this Agreement or of any cause of action arising out of the performance of this Agreement , and the AUDITOR shall be and remain liable to the CITY in accordance with applicable law for all damages to the CITY caused by the AUDITOR' s negligent performance of any of the services furnished under this Agreement . (c ) The rights and remedies of the CITY provided for under this Agreement are in addition to any other rights and remedies by law. SECTION 16 . OWNERSHIP OF DOCUMENTS. All reports that result from the AUDITOR' s services under this Agreement shall become the property of the CITY after final payment is made to the AUDITOR. No changes or revisions to the documents furnished by AUDITOR shall be made by CITY or its agents without the written approval of AUDITOR. SECTION 17 . TERMINATION. (a) The CITY may, by written notice to the AUDITOR, terminate this agreement in whole or in part at any time , either for the CITY' s convenience or because of the failure of the AUDITOR to fulfill his contract obligations . Upon receipt of such notice , the AUDITOR shall : ( 1 ) Immediately discontinue all services affected (unless the notice directs otherwise ) ; and ( 2 ) Deliver to CITY all data, reports , and such other information and materials as may have been accumulated by the AUDITOR in performing this Agreement, whether completed or in process with the exception of the audit programs . (b) If the termination is for the convenience of the CITY, AUDITOR shall be paid for actual hours worked as contemplated by this Agreement . (c ) If the termination is due to the failure of the AUDITOR to fulfill his contract obligations , the CITY may take over the work and prosecute the same to completion by contract or otherwise in a reasonable manner. In such case , the AUDITOR shall be liable to the CITY for any cost occasioned to the CITY thereby. The AUDITOR shall not be liable for any excess costs if the failure to perform this Agreement arises out of causes beyond control and without fault or negligence of the AUDITOR. Such causes may include , but are not restricted to, Acts of God or of the public enemy, acts of the CITY in either its sovereign or contractural capacity, fires , floods , epidemics , quarantine restrictions, strikes , and unusually severe weather; but, in every case , the failure to perform must be beyond the control and without the fault or negligence of the AUDITOR. (d) If , after notice of termination for failure to fulfill contract obligations , it is determined that the AUDITOR had not so failed, the termination shall be deemed to have been effected for the convenience of the CITY. In such event, adjustment in the Agreement price shall be made as provided in paragraph (b) of this Section. (e) The rights and remedies of the CITY provided in this clause are in addition to any other rights and remedies provided by law or under this Agreement . SECTION 18. EQUAL OPPORTUNITY EMPLOYMENT. AUDITOR agrees that it will not discriminate against any employee or applicant for employment for work under this Agreement because of race, color, religion, sex, age , or national origin and will take steps to ensure that applicants are employed and employees are treated during employment without regard to race , color, religion, sex, age, or national origin. This provision shall include , but not be limited to the following: employment , upgrading , demotion or transfer, recruitment advertising ; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. If applicable , AUDITOR, upon request, agrees to furnish CITY with a copy of its Affirmative Action Plan. SECTION 19. NO CONTINGENT FEES. AUDITOR warrants that it has not employed or retained any company or persons, other than a bona fide employee working solely for AUDITOR to solicit or secure this Agreement and that it has not paid or agreed to pay any person, company, corporation, individual or firm, other than a bona fide employee working solely for AUDITOR, any fee , commission, percentage , gift , or other consideration contingent upon or resulting from the award or making of this Agreement. For the breach of this provision, CITY shall have the right to terminate the Agreement, without liability and, at its discretion, deduct from the Agreement price or otherwise recover the full amount of such fee, commission, percentage , gift , or consideration. SECTION 20. CONFLICT OF INTEREST. AUDITOR agrees that it will not contract for or accept employment for the performance of any work or services with any individual , business, corporation, or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Agreement with CITY. SECTION 21 . ASSIGNMENT. This Agreement , or any interest herein, shall not be assigned, transferred, or otherwise encumbered under any circumstances by the parties hereto without prior written consent of the opposite party and only by a document of equal dignity herewith. However, the CITY shall not unreasonably withhold its consent to AUDITOR' s assignment to a successor which carries on all or a portion of the business formerly conducted by AUDITOR. SECTION 22 . SUBCONTRACTORS. In the event AUDITOR, during the course of the work under this Agreement, requires the services of any subcontractors or other professional associates in connection with services covered by this Agreement, AUDITOR must secure the prior written approval of the CITY. SECTION 23 . INDEMNIFICATION OF CITY. AUDITOR shall indemnify and save harmless and defend CITY, its Commissioners, Officers, agents, servants, and employees from and against any claim, demand, or cause of action of whatsoever kind or nature arising out of error, omission, or negligent act of AUDITOR, its agents , servants, or employees in the performance of services under this Agreement . CITY agrees to provide AUDITOR with prompt notice of any claim, demand, or cause of action. The AUDITOR shall not be required to indemnify or save harmless or defend CITY, its Commissioners, officers, agents , servants, or employees from and against any claim, demand, or cause of action caused by the negligent acts or negligent omissions, or willful misconduct , of CITY, its Commissioners, officers , agents , servants , or employees . SECTION 24 . INSURANCE. (a) AUDITOR shall provide , pay for, and maintain in force at all times during the term of this Agreement and for three years thereafter, such insurance , including Worker' s Compensation Insurance , General Liability Insurance , Property Damage Insurance and Professional Liability Insurance, as will provide to CITY the protection contained in the foregoing Indemnification undertaken by AUDITOR as set forth below. (b) Such policy or policies shall be issued by companies licensed and authorized to do business in the State of Florida. Policies for Workers' Compensation may be issued by companies authorized as a group self-insurer by Section 440 . 57 Florida Statutes . AUDITOR shall specifically protect CITY by either naming CITY as an additional insured under such policies , or, in the alternative, by providing an endorsement in accordance with the indemnification provision of Section 23 . Such policies shall contain, as a minimum, the following provisions , coverages , and policy limits of liability. ( 1 ) Professional Liability Insurance . AUDITOR shall carry limits of at least ONE MILLION AND NO/100 DOLLARS ( $1 , 000 , 000 . 00 ) per claim. ( 2 ) General Liability Insurance . AUDITOR shall carry limits of not less than THREE HUNDRED THOUSAND AND NO/100 DOLLARS ( $300 , 000. 00 ) for injuries , including accidental or wrongful death to any one person and subject to the same limit for each person, and in an amount not less than FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ( $500 , 000 . 00 ) on account of any one occurance . ( 3 ) Property Damage Insurance. AUDITOR shall carry limits in an amount not less than THREE HUNDRED THOUSAND AND NO/100 DOLLARS ( $300 , 000 . 00 ) for property damage on account of any claim and in an amount not less than FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ( $500 ,000 . 00 ) for property damages on account of any one occurance . (c ) Prior to the commencement of work hereunder, the AUDITOR shall furnish to the CITY a certificate or written statement of the above-required insurance . The policies evidencing required insurance shall contain an endorsement to the effect that cancellation or any material change in the policies adversely affecting the interests of the CITY in such insurance shall not be effective until thirty ( 30 ) days after written notice thereof to the CITY. CITY reserves the right to require a certified copy of such policies upon request. SECTION 25 . REPRESENTATIVE OF CITY AND AUDITOR. (a) It is recognized that questions in the day-to-day conduct of performance pursuant to this Agreement will arise. The CITY, upon request by AUDITOR, shall designate in writing and shall advise AUDITOR in writing , of one ( 1 ) or more CITY employees any of whom shall be entitled to receive all communications pertaining to the day-to-day conduct of the Agreement . Any of such employees shall have the authority to transmit instructions , receive information, and interpret and define the CITY' s policy and decisions pertinent to the work covered by this Agreement . (b) AUDITOR shall , at all times during the normal work week, designate or appoint one or more representatives of AUDITOR who are authorized to act in behalf of AUDITOR regarding all matters involving the conduct of the performance pursuant to this Agreement and notify CITY of any change in such designation. SECTION 26 . ALL PRIOR AGREEMENTS SUPERSEDED. This document incorporates and includes all prior negotiations, correspondence, conversations , agreements , or understandings concerning the subject matter of this Agreement that are not contained in this document. Accordingly, it is agreed that no deviation from the terms hereof shall be predicated upon any prior representations or agreements , whether oral or written. SECTION 27 . MODIFICATIONS, AMENDMENTS, AND ALTERATIONS. It is agreed by the parties hereto that no modification, amendment, or alteration in the terms or conditions herein shall be effective unless contained in a written document approved and executed by the parties . SECTION 28 . NOTICES. Whenever either party desires to give notice unto the other, notice may be sent to : FOR CITY Finance Department Ocoee City Hall 150 N. Lakeshore Drive Ocoee , Florida 34761 FOR AUDITOR Either of the parties may change , by written notice as provided herein, the addresses or persons for receipt of notices. IN WITNESS WHEREOF, the parties hereto have made and executed this instrument for the purpose herein expressed. Signed, sealed and delivered in the presence of: (Auditing Firm) By: TITLE: (As to Auditor) "AUDITOR" CITY OF OCOEE By: LESTER DABBS , JR. , MAYOR Attest : (As to City of Ocoee ) Jean Grafton, City Clerk "CITY" STATE OF FLORIDA COUNTY OF ORANGE BEFORE ME, the undersigned authority, personally appeared , as who, being first duly sworn upon oath, executed the foregoing instrument in my presence and swore and acknowledged that he signed the foregoing instrument for the purposes therein expressed. WITNESS my hand and official seal this day of , 1991 . NOTARY PUBLIC (NOTARIAL SEAL ) MY COMMISION EXPIRES: STATE OF FLORIDA COUNTY OF ORANGE BEFORE ME, the undersigned authority, personnaly appeared LESTER DABBS , JR. and JEAN GRAFTON, well known to me to be the Mayor and City Clerk of the City of Ocoee, and they acknowledged before me that they executed the foregoing instrument in the presence of two witnesses freely and voluntarily under authority duly vested in them by said city as the act and deed of said city. WITNESS my hand and official seal in the County and State last aforesaid this day of , 1991 . NOTARY PUBLIC (NOTARIAL SEAL ) My Commision Expires: