Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Item #06 Approval of Awarding RFP #17-005 Auditing Services
ocoee Florida AGENDA ITEM COVER SHEET Meeting Date: November , 7, 201 7 Item # Reviewed By: Contact Name: Joyce Tolbert Finance Director: &Gip Contact Number: 1516 City Manager: /1/06 . Subject: Award of RFP #17-005 Auditing Services Background Summary: The City's current auditing contract has expired. 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, 2017, 2018, and 2019 with an automatic renewal option for an additional two (2) years, plus a one year(1) year optional renewal at the City's discretion. 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 RFP was advertised on August 27, 2017 and was publicly opened on September 19, 2017. There were five (5) responses submitted. The Finance Department reviewed the qualification statements and all were considered responsive, see the attached RFP Checklist. Attached are the responses; original copies of all responses are available in the Finance Department for your review. The five (5) responses were evaluated by the RFP Evaluation Committee appointed by the City Manager, which was comprised of three (3) members: Robert Briggs, Finance Director; Donna Bruno, Chief Accountant; and Doug Gaines, Assistant Support Services Director. The public RFP Evaluation Committee meeting was held on September 26, 2017, with the Evaluation Committee evaluating and short-listing the firms on specific evaluation criteria. Please see the attached shortlist/evaluation form. The Evaluation Committee short-listed the following firms in ranked order, and recommends contracting with the top ranked firm, McDirmit Davis & Company, per the attached award recommendation from Robert Briggs, Finance Director. The Table below is the Evaluation Committee's rankings: Rank/Respondent 1. McDirmit Davis & Company 2. Purvis Gray & Company LLP 3. Mauldin & Jenkins LLC 4. CliftonLarsonAllen LLP 5. Cherry Bekaert LLP Issue: Should the City Commission award the term contract for auditing services to the top-ranked firm, McDirmit Davis & Company, as recommended by the Evaluation Committee? Recommendations: Staff recommends that the City Commission award RFP #17-005 Auditing Services to McDirmit Davis & Company in the amount of $32,480 for the annual audit, and $7,680 annually for the Certified Annual Financial Report (CAFR), and authorize the Mayor, City Clerk, and Staff to execute all necessary contract documents. Should the City require a single audit for events such as bonding, FEMA etc., this additional service would be $4,500 per single audit. Attachments: 1. RFP#17-005 2. Addenda#1 -#3 3. McDirmit Davis Response 4. Purvis Gray Response 5. Mauldin & Jenkins Response 6. CliftonLarsonAllen Response 7. Cherry Bekaert Response 8. Evaluation Form/Shortlist 9. RFP Checklist 10. Award Recommendation from Finance Director Financial Impact: $40,160 annually for the annual audit and CAFR. Type of Item: (please mark with an "x") Public Hearing For Clerk's Dept Use: Ordinance First Reading X Consent Agenda Ordinance Second Reading Public Hearing Resolution Regular Agenda X Commission Approval Discussion&Direction Original Document/Contract Attached for Execution by City Clerk X Original Document/Contract Held by Department for Execution Reviewed by City Attorney N/A Reviewed by Finance Dept. N/A Reviewed by ( ) C N/A 2 Mayor Commissioners Rusty Johnson WIP* John Grogan, District 1 Rosemary Wilsen, District 2 City Manager Richard Firstner, District 3 Robert Frank o c o e e Joel F. Keller, District 4 florida MEMORANDUM TO: Joyce Tolbert Purchasing Agent FROM: Robert Briggs 0.6 Finance Director DATE: September 28, 2017 RE: Recommendation to Award RFP 17-005 Auditing Services The City's current Auditing Services contract has expired; therefore, the City solicited proposals for Auditing Services as required per State of Florida Statute. The Evaluation Committee met publicly on September 26, 2017 to evaluate the five (5) responses. The Evaluation Committee, comprised of Robert Briggs, Finance Director, Donna Bruno, Chief Accountant, Doug Gaines, Assistant Director of Support Services recommends award of RFP#17-005 Auditing Services to the top-ranked respondent, McDirmit Davis & Company. McDirmit Davis has provided the City with Auditing Services since 1985, during which the City has been awarded the Certificate of Achievement for Excellence in Financial Reporting for (27) consecutive years. These services are estimated to cost $32,480 for the annual audit, and $7,680 for the Certified Annual Financial Report. Should the City require a single audit, this option would be $4,500 per single audit. This contract is for five years (3 years and 2 automatic renewals) with one optional renewal period. City of Ocoee Utilities • 1800 A.D. Mims Road • Ocoee, Florida 34761 Phone: (407) 905-3159 • Fax: (407) 877-5899 •www.ocoee.org Cl_ J -J C CO O_ E O U Cd v Co 0) (N 0 N 7 a c t6 Q E O U 01 •_ r N- M ra a E U E h— U J Cl) J _ N LJLc I— Y c (n ) 0) N v 0) CO N W p ces O Uco N co 7 To o cc N. W o fX 7 1— N O a o aZW It C ._ z Ct ~ O o V Co LC) No N co c J O < = c Q To J U o Qa� > .,,, Y W a 43 J _c c a a) m co a) LC) N N Lf) m m Cc co OT L .0 0 a) c E Z5 a) cm c a) N C N a) m ,i---- a) .0 L Q) = 6 m a) O C• C N CO H N L l_ L 0 O) = -0• O OJ Z a) F— Z ° 0) > > > 0 a a `° IX W W WI— cc z ii L. ' 2 N � T CO CO0 Q E 0 rn rn M in e9 . * , _ ,..., 06 N N N �](V1 0 4] J S d C •C -(O a) CJ Q. E O 0 06 .‘g CO 0 CO CU .^ r C'7 C'7 1- VJ a ` E 0 O Et 0 4::t. Oc C N W Z N (N S M U 0 025 O Os p O W C VJ \ l� ' IQ� @ yr `�y. /nco J lC 4 ^ Z W a) ct I—Q Q o C 0-) C N o N N Nse co Q J J Q 0 > 0 U Z wC. C' J t 0 O a) 0 w Q In ,n M m (0) N N c�I a0 m Z 2 ai m C U a 0 EN O C LL 0 C y y i O C <C to '47, O V - i- a L L C •(� 'vI^ C 111 > L `� 3 c9 N F y E 0W C C C CL C 0- C O Q' E 'Po To 0 a 'O C O 0 •O 0 O a s d z �n -o � y a CO. Q a_ a a J O `0 0 O O ++ Q • C M i c') C N c� O d m co C W LL O a. o Q o a. co E w' w' 41, t a_ T C C CDE U O O M C�„'��VJ\ 06 CO CO N CI 0 Co Z a C C CO a E O 0 no (3) O O tf) Q) , CO5 CO N .--- 0) co0 E 0 U /E/y/ 0 y� J OC u C N O O .t N cp W Z -) co CO N .- O) N U_ O_ C coLO ~ co• W -.• g 4t > J li. Z W C / w H Q C O O If) O in M 6 N M M N n fa-J Q C O U 0 Z a J J 1 a) co O O LC) p LO m M CO N 0) ''....., 4 4 a) U E O 0 LL 0 O_ O N rr u? R O CO (5 O <C 'C w F y as t6 .0 Cl) O ra C V O V N H Y w V R4 Cin OC O0 Z c (Oa c O C y C Q. C Q- C O ' ce E c "El O O • d O m cm 72 a 0 a < d d d J a d z Cl) O o co C •- 11) d � Q C Em m 15 lC M i M73 N V r ro > d 7 C O m m LId Cr Q Cr d Co H CD W W NZ a .� J ___+ T ,` C \VC co 0 0 U N N N V O M oo N N N co T 0 UI D a- >,a C CO 0 g- 0 0 0 06 0) O) Lf) (N O 5 N N N — 0) co 0 0 0 2 /2/ 0 IL J O C VJ C N N O V' N W Z , N N N N- U O C LO O " i_ O W N. N J a L (.9 Q -J 4 J Li Z w (1) ix F— J o O O co v In D < N N N ti D CZ -J Q \a 0 U 0 Z 0 -J-J C CI) CO Lf) co Lf) O CO N m N N N CO 0 r 4.3 1, L U ll. E 0 Cl)0J U U) LO J o C cc v a 47+ R 0 S� CZ Lai 7 0 '-To t U) = To L N H N 2 w 0 To 4 O o .N+c. o �N+ Z C ca a) a C C C Q C 0- C LI ec E c To o e •o = 'o Q •O . 'Q a d CO V) 72 co cna Ca as as -JO o 0 y 0 < E 75 75 To E CO i CO N U r- ~ O d 0 0 > d C i 0To713 _C w ii ao ao ac i_ c > > RFP#17-005 AUDITING SERVICES CHECKLIST 9/19/17 2:00 pm Submission Requirements - Qualifications, Annual Price Conflict of Interest Proposal- &Company Info License& Annual Price Annual Price Assistance Forms,Summary of Company Proposal-Auditing Proposal - and/or Review of No. PROPOSER Litigation Addenda#1-3 Check Services Single Audit Fee CAFR Included in 2017-$58,000 2017-$5,500 annual audit 2018-$58,000 2018-$5,500 pricing-review of 2019-$58,000 2019-$5,500 CAFR&assist 1 Cherry Bekaert LLP ✓ ✓ Active Total-$174,000 Total-$16,500 technical 2017-$0 2017-$35,500 2017-$3,500 2018-$0 2018-$36,565 2018-$3,600 2019-$0 2019-$37,650 2019-$3,700 See fee 2 CliftonLarsonAllen LLP ✓ ✓ * Active Total-$109,715 Total-$10,800 considerations 2017-$4,500/ea 2018-$4,500/ea 2017-$33,400 2019-$4,500/ea 2017-$1,500 2018-$34,400 Total-$13,500 2018-$1,500 2019-$35,400 (Dependent on 2019-$1,500 3 Mauldin&Jenkins LLC ✓ ✓ Active Total-$103,200 number per yr) Total-$4,500 2017 -$32,480 2017-$4,500 2017-$7,680 2018-$32,480 2018-$4,500 2018-$7,680 McDirmit Davis& 2019-$32,480 2019-$4,500 2019-$7,680 4 Company ✓ ✓ Active Total-$97,440 Total-$13,500 Total-$23,040 2017-$37,000 2017-$3,500 2017-$2,500 2018-$37,000 2018-$3,500 2018-$2,500 Purvis Gray& 2019-$37,000 2019-$3,500 2019-$2,500 5 Company LLP ✓ ✓ Active Total-$111,000 Total-$10,500 Total-$7,500 `Addendum#3 to extend the RFP due date due to Hurricane Irma,not required to be acknowledged. Mayor Commissioners Rusty Johnson John Grogan, District 1 Rosemary Wilsen, District 2 City Manager 401 )ir RichardFirstner, District Robert Frank Joel F. Keller, District 4 oco e florida CITY OF OCOEE, FLORIDA REQUEST FOR PROPOSALS RFP #17-005 AUDITING SERVICES U-I- 1 I-UUb Auditing Services 1 TABLE OF CONTENTS RFP #17-005 AUDITING SERVICES RFP DOCUMENTS Section Page Legal Advertisement 3 Introduction 4 - 7 General Terms and Conditions 8 - 16 Summary of Litigation* (Page 16) Acknowledgement of Addenda* (Page 16) SCOPE OF SERVICES Section Page Scope of Services 17 — 20 Information Requested from the Firm 20 — 22 Evaluation of Proposals 22 - 24 Price Proposal Form* 25 - 26 Conflict of Interest Disclosure Form* 27 Company Information and Signature Sheet* 28 Exhibit A— Summary of Significant Accounting Policies 29 (10 pages, numbered 30-39)- Available on Demandstar. Proposed Agreement 30 - 42 *Submit Form Completed with Proposal (End of Table of Contents) kFN 1/-UU5 Auditing services 2 Request for Proposals, Legal Advertisement The City of Ocoee, Florida (City) is soliciting sealed proposals for RFP #17-005 Auditing Services. Proposals will be received at the office of Joyce Tolbert, CPPB, Purchasing Agent, Finance Department/Purchasing, Second Floor, 150 North Lakeshore Drive, Ocoee, Florida 34761 until 2:00 pm, local time, on September 14, 2017. Proposals received after that time will not be accepted under any circumstances. Sealed proposals that have been timely received will be publicly opened and the names of the responding firms read aloud at that time. No Pre-proposal conference is scheduled at this time. Prospective respondents may secure a copy of the documents required for submitting a proposal through Onvia/Demandstar by accessing the City's website at http://www.ocoee.orq under the "Living & Working" section. Partial sets of the documents required for submitting a proposal will not be issued. By using Onvia/Demandstar, prospective respondents will be provided with all information regarding this RFP and addenda and changes to the project requirements. Membership with Onvia/Demandstar is not required to submit a proposal; fees may apply for non- members. Persons other than prospective Respondents may inspect the documents required for submitting a proposal at the Ocoee City Hall City Clerk's Office, 150 N. Lakeshore Drive, Ocoee, FL 34761. Persons inspecting the documents at the City Clerk's office that request copies will be required to pay a fee, as prescribed by statute. Melanie Sibbitt, City Clerk, Orlando Sentinel, August 27, 2017. KFN 1/-UUb Auditing Services 3 Introduction: A. Any questions or concerns regarding this RFP should be addressed in writing to the Finance Department/Purchasing, City of Ocoee, FL, Attention: Joyce Tolbert, Purchasing Agent (407) 905-3100, extension 1516 and email preferred itolbert(a�ci.ocoee.fl.us, and must be received not later than September 7, 2017, at 2:00 p.m. in order to receive an answer. Any clarifications/changes will be only through written addenda issued by the Purchasing Agent. Respondents should not contact City staff, with the exception of the Purchasing Agent, or other City consultants for information regarding this RFP before the proposal award date. Any contact with any other member of the City Staff, City Commission, or its agents during the solicitation, award, and protest period may be grounds for disqualification. B. Proposals shall be presented as one (1) original and one (1) electronic copy of the proposal. The electronic copy shall be a complete copy of the proposal submitted in a fully electronic form on a USB FLASH DRIVE as a single file Adobe PDF file, version 5 or later. The entire proposal package shall be received by the Finance Department not later than 2:00 P.M., local time, on September 14, 2017. 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 an evaluation committee appointed by the City Manager and will be ranked in accordance with the established evaluation criteria. Date, time, and location of any scheduled evaluation committee meeting(s) for this RFP will be announced publicly. The evaluation 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 kF1' 1 -UU5 Auditing services 4 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. 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. H. FLORIDA PUBLIC RECORDS LAW. In accordance with Chapter 119 of the Florida Statutes, and, except as may be provided by Chapter 119 of the Florida Statutes and other applicable State and Federal Laws, all Respondents should be aware that the proposal and the responses thereto are in the public domain and are available for public inspection. Respondents are requested, however, to identify specifically any information contained in their proposal that they consider confidential and/or proprietary and which they believe to be exempt from disclosure, citing specifically the applicable exempting law. All proposals received in response to this request for proposals become the property of the City Ocoee and will not be returned. In the event of an award, all documentation ki-N 1 -UUb Auditing services 5 produced as part of the contract will become the exclusive property of the City. I. PUBLIC RECORDS COMPLIANCE. The City of Ocoee (City) is a public agency subject to Chapter 119, Florida Statutes. The Contractor agrees to comply with Florida's Public Records Law. Specifically, the Contractor shall: 1. Keep and maintain public records required by the City to perform the service. 2. Upon request from the City's custodian of public records, provide the City with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in chapter 119, Florida Statutes, or as otherwise provided by law. 3. Ensure that public records that are exempt or confidential and exempt from the public records disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and following completion of the contract if the Contractor does not transfer the records to the City. 4. Upon completion of the contract, Contractor agrees to transfer at no cost to the City all public records in possession of the Contractor or keep and maintain public records required by the City to perform the service. If the Contractor transfers all public record to the City upon completion of the contract, the Contractor shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If the Contractor keeps and maintains public records upon completion of the contract, the Contractor shall meet all applicable requirements for retaining public records. All records stored electronically must be provided to the City, upon request from the City's custodian of public records, in a format that is compatible with the information technology systems of the City. 5. A Contractor who fails to provide the public records to City within a reasonable time may be subject to penalties under section 119.10, Florida Statutes. IF THE CONTRACTOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE CONTRACTOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS AT 407-905-3100, EXTENSION 1022, CCDL@ci.ocoee.fl.us, WITH AN OFFICE LOCATED AT 150 NORTH LAKESHORE DRIVE, OCOEE, FLORIDA 34761. J. ACCEPTANCE AND AWARD. The City reserves the right to accept or reject any or all proposals, to waive formalities, technicalities 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, unless the Respondent qualifies its proposal by specific limitations. The City may kF-I- 1/-UUb Auditing Services 6 accept one or more proposals if, in the City's discretion, the City determines that it is in the City's best interest to do so. The City reserves the right to award the contract to the Respondent(s) which, in the City's sole discretion, is (are) the most responsive and responsible. The City reserves the right, as an aid in determining which proposals are responsible, to require a Respondent to submit such additional evidence of Respondent's 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 Respondent, including past performance (experience) with the City and others. The City Commission shall be the final authority in the selection of any and all proposals for acceptance and award. The Respondent certifies that it will not withdraw its proposal for a period of ninety (90) days after the scheduled closing time for the receipt of proposals. (Remainder of page left blank intentionally) Rip 11-UU5 Auditing Services 7 GENERAL TERMS & CONDITIONS: 1. 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); Hi-F' 1 I-UUb Auditing services 8 5. PROTESTS: All bid protests shall be submitted to the Purchasing Agent in the following manner: a) A Respondent shall file a written bid protest under this Article or be barred any relief; oral protests shall not be acknowledged. b) A bid protest shall be limited to the following grounds: (a) issues arising from the procurement provisions of the RFP, its addenda, and other bidding documents; and/or (b) applicable federal, state, or local law. No bid protest may be based upon questions concerning the design documents (drawings and specifications). The Respondent shall clarify all questions concerning the design documents of the project prior to submitting its bid. c) The content of the bid protest shall fully state the factual and legal grounds for the protest and the legal basis for the relief requested. d) The bid protest shall be filed with the Purchasing Agent not later than five (5) calendar days after the posting of the notice of intent to award or recommendation of award by staff, whichever is earlier. e) The Purchasing Agent, on behalf of the City, shall make a determination of 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 award of the contract unless enjoined by order of a court of competent jurisdiction. 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 has Florida Sales & Use Tax Exemption Certificate No. 85- 8013779974C-0; and, pursuant to Chapter 212, Florida Statutes, 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. krN 1 -UU5 Auditing services 9 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 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: a) Proposer 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 a contract for the described services. b) Proposer 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 applies to any members of his or her immediate family) c) Proposer 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, Proposer agrees to immediately notify the City in writing. Proposer must submit the attached Conflict of Interest kip 1/-UUb Auditing Services 10 Statement. d) Proposer 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 contained in the RFP documents. e) Proposer agrees to abide by all conditions of the negotiation process. In conducting negotiations with the City, Proposer offers and agrees that if this negotiation is accepted, the Proposer 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 Proposer. The proposal constitutes a firm and binding offer by the Proposer 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 kw 1/-UUb Auditing Services 11 limits and coverage's with deductible amounts acceptable to the city: Professional Liability Insurance: $1,000,000.00 The successful respondent shall be required to provide evidence of both General (Public & Property) Liability and Professional (Design Errors and Omissions) Liability Insurance in the form of a certificate of insurance issued on behalf of the City of Ocoee and naming the City as an additional insured, by companies acceptable to the City at the minimum limits and coverages listed below with deductible amounts acceptable to the City. The selected consultant shall not commence any work in connection with an Agreement until all of the following types of insurance have been obtained and such insurance has been approved by the City, nor shall the consultant allow any subconsultant to commence work on a subcontract until all similar insurance required of the subconsultant has been so obtained and approved. Policies other than Workers' Compensation shall be issued only by companies authorized by subsisting certificates of authority issued to the companies by the Department of Insurance of Florida which maintain a Best's Rating of"A" or better and a Financial Size Category of"VII" or better according to the A.M. Best Company. Policies for Workers' Compensation may be issued by companies authorized as a group self-insurer by F.S. 440.57, Florida Statutes. 1. Loss Deductible Clause: The City shall be exempt from, and in no way liable for, any sums of money which may represent a deductible in any insurance policy. The payment of such deductible shall be the sole responsibility of the General Consultant and/or subconsultant providing such insurance. 2. Workers' Compensation Insurance: The Consultant shall obtain during the life of this Agreement, Worker's Compensation Insurance with Employer's Liability Limits of $500,000/$500,000/$500,000 for all the Consultant's employees connected with the work of this project and, in the event any work is sublet, the Consultant shall require the subconsultant similarly to provide Workers' Compensation Insurance for all of the latter's employees unless such employees are covered by the protection afforded by the Consultant. Such insurance shall comply fully with the Florida Workers' Compensation Law. In case any class of employees engaged in hazardous work under this contract for the City is not protected under the Workers' Compensation statute, the Consultant shall provide, and cause each subconsultant to provide adequate insurance, satisfactory to the City, for the protection of the Consultant's employees not otherwise protected. Include Waiver of Subrogation in favor of the City of Ocoee. 3. Consultant's Public Liability and Property Damage Insurance: The Consultant shall obtain during the life of this Agreement COMMERCIAL AUTOMOBILE COVERAGE, this policy should name the City of Ocoee as an additional insured, and shall protect the Consultant and the City from claims for damage for personal injury, including accidental death, as well as claims for property damages which may arise from operations under this Agreement whether such operations be by the Consultant or by anyone directly or indirectly employed by the Consultant, and the amounts of such insurance shall be the minimum limits as follows: FREE' 1 f-UU5 Auditing Services 12 4. Automobile Bodily Injury Liability & Property Damage Liability • $1,000,000 Combined single limit per occurrence (each person, each accident) • All covered automobile will be covered via symbol 1 • Liability coverage will include hired &non-owned automobile liability • Include Waiver of Subrogation in favor of The City of Ocoee 5. Comprehensive General Liability (Occurrence Form) - This policy should name the City of Ocoee as an additional insured and should indicate that the insurance of the Consultant is primary and non-contributory. • $2,000,000 GENERAL AGGREGATE • $2,000,000 PRODUCTS-COMPLETED OPERATIONS AGGREGATE • $1,000,000 PER OCCURRENCE • $1,000,000 PERSONAL &ADVERTISING INJURY • Include Waiver of Subrogation in favor of the City of Ocoee 6. Subconsultant's Comprehensive General Liability, Automobile Liability and Worker's Compensation Insurance: The Consultant shall require each subconsultant to procure and maintain during the life of this subcontract, insurance of the type specified above or insure the activities of these subconsultants in the Consultant's policy, as specified above. 7. Owner's Protective Liability Insurance: (Not applicable for Auditing Services). As applicable for construction projects, providing coverage for the named insured's liability that arises out of operations performed for the named insured by independent consultants and are directly imposed because of the named insured's general supervision of the independent consultant. The Consultant shall procure and furnish an Owner's Protective Liability Insurance Policy with the following limits: $1,000,000, and per occurrence, $2,000,000. Aggregate and naming the City of Ocoee as the Named Insured. 8. Contractual Liability: If the project is not bonded, the consultant's insurance shall also include contractual liability coverage to insure the fulfillment of the contract. NOTE: PUBLIC LIABILITY INSURANCE AND AUTOMOBILE LIABILITY INSURANCE,THE CITY SHALL BE NAMED AS ADDITIONAL INSURED. • $1,000,000 PER OCCURRENCE • $2,000,000 AGGREGATE Commercial Umbrella: • $1,000,000 PER OCCURRENCE • $2,000,000 Aggregate • Including Employer's Liability and Contractual Liability Builders Risk: (Not Applicable for Auditing Services). • $100,000 Any (1) Location • $1,000,000 Any (1) Occurrence 9. Certificates of Insurance: Certificate of Insurance Form (see sample, above), naming K-l' 11-UUb Auditing services 13 the City of Ocoee as an additional insured will be furnished by the Consultant upon notice of award. These shall be completed by the authorized Resident Agent and returned to the Office of the Purchasing Agent. This certificate shall be dated and show: • The name of the Insured consultant, the specific job by name and job number, the name of the insurer, the number of the policy, its effective date, and its termination date. • Statement that the Insurer shall mail notice to the Owner at least thirty (30) days prior to any material changes in provisions or cancellation of the policy, except ten (10) days written notice of cancellation for non-payment of premium. (Remainder of page left blank intentionally.) KI-1-1 1 I-UU5 Auditing services 14 M 011ooprcrtn ACORN CERTIFICATE OF LIABILITY INSURANCEnaas:� JC U11iO4/04 raOOlr+a THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AMEND,EXTEND OR ALTER THE COVERAGE AFFORDED ST THE FOUCMA BELOW msuRERD AFFORDING COVERAGE EPIC e MAO 1MAl1A. ..molt.....,E a......... MOM Contracsstor's Haw IMAMC waEM1O MTMMA* COVERAGES M P0.1:111 OF M.-MAPCO UfII0 MOW NM OEM NIDI TO ME MSC MOD MOM FOR M rOICVP'OMO MnG.T10 MD/WIMOOMPE Mr NusMwsY TIMOR COMMON Cr MY CONI1VCT a OIMI 10tMMT WINS MOM=10 tn WMO COMMONWAY Oa MUM CM MT MOM1.MMaurME M101111110 NY TM OO MUCUS CEe10MMNM amNC1 om.M IME, ES OCI MIM AMCOIMRON.OF 10CN MUM,MCOPM n lean Raw M.NAMI Sv1aMU010 MP PAC CI IL POLICY NMI MI 'moi `fir`-W LAM TP.TO T7raOFaMIaMaCE MACNOtcusetra 11,000,000 sMe.m.IAM.m = S COMMMM.ON_I wean. r4:164,==.1 150,000 MAIM MAGE Qomwi MC oo Vw'••w.w 15,000 FMew&aAwnam. x 1,000,000 UMW $1,000,000 OMT.AOOMOAn MIT AMIN rMgI nnlOOuETs•COMM,AOO-11,000,000 ,ts ny_la f 1 L..i A"rs1NM.t wm111. i I 0.0.otan 11,000,000 XI ANY AUTO Me mooM 11 ',,__I ALL M.10 AUTOS $00o$n,,u" I IQNaNOMAENOM Mr tomm CIOC I IL,Ne. OOWNSOA"ros FIaMI-COMAE isMAa ASEUaO• , MOO aa..GACOMA $ Ill AsYAuro II pTI1M1 11* tA*CC =Or MO $ I cassoumnuaLA OAKS,/ tAO1aaEEVIa 11,000,000 X ��'"' ( AOoaMnn 11,000,000 1 1-oesucrins s a ssrom 1 I ,A,U� WMCfMM COP MMATMSANS x11=11141f I"i McLIMIPM WALT, LP_MCA ACMOO $500,000 ; ,r a.IMMO•VA DIPLOM 1500,000 141tA"`A'nlOW%4MA I IA.OYAM•FOUCY1AIn $500,000 OM. Builders Risk Any 1 Loc TMOXI I. Any 1 Goa 1,000,000 ,_.._1 on OF OMSATIOIMI LOCATIONS I UOMMMOM m Mnabs+M T I SPOOK IMMOMMI The insurance evidenced by this certificate shall RNs the certificate holders as an additional insured on the General Liability& Umbrella Liability. Workers' Ccepeaaation, Bmployere' Liability a General Liability shall contain a Waiver of Subrogation in favor of the certificate holder. The certificate bolder is added as a MEd$seed fix 81(:lTts Busk. CERTIFICATE HOLDER CANCELLATION OCOEEO1 IOMO Off OF MMOW M v_Io1O.cMM CNC.suil was toll m$MS110. Om IIMMOr,TIM eMaIO MOWN mi.IMEAIORTO tAa 10 an MM. NOME 70neMO MGnMm1NA E.ToMUMmRrau.e100010m1A11 City of Ocoee MIMswwU 111011 EUAeunraMnI_I_I TIM Muls.asMOM OR 150 W. Lakeshore Drive aMwMrTAtsu Ocoee FL 34751-2I5S 1MnaMat aammanATat am O ACORO CORPORATION 10111AtORDi, ,A.l SNR pt & kFN 1/-UOb Auditing Services 15 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 K*N 1 I-UUb Auditing services 16 City of Ocoee Scope of Services Request for Proposals (RFP) #17-005 Auditing Services 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, 2017, 2018, and 2019 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. The City's current auditing contract has expired. 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. This includes a review of the pension plans. 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; HI-I' 1 -UUb Auditing Services 17 d. Management Letter. 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, an electronic copy of the following reports will be required: 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. C. Comprehensive Annual Financial Report 1. The firm selected will review the CAFR and provide comments/assistance to the City prior to submission to the GFOA. 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 over 41,181 residents. The City is primarily a residential and retail area with a small amount of light industry and commercial business. The City provides fire, police, water, wastewater, garbage, and stomiwater services. The City established a Community Redevelopment Agency (CRA) in 2006. This fund is reported as a major special revenue fund in the financial statements. Ocoee has received the K} I' 1 1-UU5 Auditing Services 18 GFOA Certificate of Achievement for Excellence in Financial Reporting for twenty-seven consecutive years. B. The Accounting System 1. Entity Definition The financial reporting entity includes all funds of the primary government and the CRA. The 2017 adopted general fund budget is $40,678,550. The budget and 2016 CAFR are available on the City's website under the Finance Department at http://www.ocoee.orq/145/Finance . The city processes payroll in-house. The city has two pension plans, one for general employees and one for police and fire employees. Employees do not participate in the state pension plan. The city operates a health center for its employees and is self-funded for health and worker's compensation insurances. 2. General Information a. The accounting system is a web based application. The financial software is American Data Group (ADG): Purchasing, NP, NR, G/L, Payroll, Utility Billing, and Licensing. The City utilizes Clear Village software for Permitting. 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 355 full-time budgeted positions and 67 part-time budgeted positions. There are no substantial fluctuations in personnel during the year. d. The City calculates billing amounts in house for utility customers. Printing of bills is outsourced. e. The revenue and expenditure budgets for General Fund and enterprise funds are integrated into the accounting system. f. As of September 30, 2016 • Total Assets were $245,576,647 • Long-term debt obligations were $66,760,000 NI-1' 1(-UUb Auditing Services 19 3. Accounting Policies and Procedures See (Exhibit A) for information on our significant accounting policies. SCHEDULE OF AUDIT WORK It is required that the CAFR be published by March 31st 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): October 31st Interim work complete December 31st The City will have adjustments made, books closed and trial balance prepared March 1st The Audit completed March 22nd Review of CAFR completed 2nd City Commission Presentation of Audit to City Commission by Meeting in April by the firm and staff (Note: the City Commission meets on the 1st and 3rd Tuesdays of the month.) 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, 2017, 2018, and 2019 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. 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 Auditing Services", the name of the firm, local address, telephone number, name of the contact person, and the date. B. Table of Contents KI-P 1(-UUb Auditing Services 20 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 scheduled timeframe. 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 1. Describe the firm's recent (last 5 years) governmental experience, 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 peer 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. KI-I' 1(-UUb Auditing services 21 F. Personnel Qualifications 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 Submit a work plan to accomplish the scope of the RFP. The work plan should include descriptions and 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. Identify whether audit software and/or electronic spreadsheets are utilized. In addition, what approach is proposed for gaining and documenting the auditor's understanding of the internal control structure? H. Price Proposal Companies/Respondents should provide their prices for each year as requested on the Price Proposal Form. Prices quoted should be all inclusive. Please note that should be all inclusive. Please note that the City is not required to have a single audit each year. A renewal option for an additional two years may be negotiated. Include all other forms listed on the Table of Contents to be submitted with your proposal. EVALUATION OF PROPOSALS 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 kip 1 -UUb Auditing services 22 basis. 3. Responses of the client references. 4. Experience of the firm and individual members of the firm in conducting municipal audits. 5. The sufficiency of financial resources and ability of firm 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 firms will then be shortlisted based upon the scores they receive for the following: Firm's Qualifications 0-30 points Personnel Qualifications 0-30 points Audit Approach 0-25 points Price Proposal 0-15 points The criteria for evaluation shall be based on the criteria listed above. The City reserves the right, before awarding the contract, to require a Respondent to submit such evidence of its qualifications as the City may deem necessary and may require interviews of firms. The City shall be the sole judge of the competency of Respondents. Proposals will be reviewed by an Evaluation Committee appointed by the City Manager to evaluate and/or shortlist proposals and to recommend to the City Commission for consideration. The date, time, and location of any scheduled Evaluation Committee meeting(s) for this RFP will be noticed publicly and posted on Demandstar. The City Commission's decision to endorse or modify the ranking by the Evaluation Committee shall be final. The City Commission shall be the final authority in the award or rejection of any all responses. Please be aware that all City Commission meetings are duly noticed public meetings and that all documents submitted to the City as a part of a proposal constitute public records under Florida law. All Respondents shall be notified via Onvia/Demandstar or other means of the Evaluation Committee's recommended qualifying and/or ranking of firms to the City Commission. The successful Respondent shall be required to execute a contract with the City. Upon the successful negotiation of the contract, the contract will be executed by both parties. 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. KHF' 1 I-UUb Auditing Services 23 TIME SCHEDULE The anticipated schedule of events related to this solicitation is: Date of RFP Request for Proposals published 11 days later Last day for questions 18 days later Proposals are due 19 days later Proposals distributed to evaluation committee 24 days later Evaluation committee meeting held Next meeting Short-list of ranked firms recommended to City Commission Dates are estimated and subject to change at the City's discretion. (Remainder of page left blank intentionally.) kip 1 -UUb Auditing Services 24 PRICE PROPOSAL FORM RFP #17-005 AUDITING SERVICES COMPANY NAME A. ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED IN RFP #17-005 FOR FISCAL YEARS ENDING 2017, 2018, 2019: 2017 $ . 2018 $ . 2019 $ . TOTAL $ . B. ANNUAL PRICE PROPOSAL FOR SINGLE AUDIT FEE: 2017 $ . 2018 $ . 2019 $ . TOTAL $ . KI-I, 1(-UU5 Auditing Services 25 C. ANNUAL PRICE PROPOSAL FOR ASSISTANCE AND/OR REVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR), IF REQUIRED: 2017 $ . 2018 $ . 2019 $ . TOTAL $ . (A renewal option for an additional two years may be negotiated for services provided in items A through C). Date Company Name License Number Authorized Officer (print) Authorized Signature KFI' 1/-UUb Auditing Services 26 ocoee florido EXHIBIT"G" RFP CONFLICT OF INTEREST DISCLOSURE FORM The award of this contract is subject to the provisions of Chapter 112, Florida Statutes. All Proposers must disclose within their Proposal: the name of any City of Ocoee employee, Mayor or City Commissioner, other City Official, or City Consultants, who owns assets or capital stock, directly or indirectly, in the Proposer's firm or any of its branches, or would directly or indirectly benefit by the profits or emoluments of this proposal. (Indirect ownership or benefit applies to any members of his or her immediate family.) Proposer 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, Proposer agrees to immediately notify the City in writing. The purpose of this disclosure form is to give the City the information needed to identify potential conflicts of interest for the City Commission, Evaluation Committee members, and other key City employees and consultants involved in the award of this contract. According to Chapter 112, Florida Statutes, the term "conflict of interest" "means a situation in which regard for a private interest tends to lead to disregard of a public duty or interest", and refers to situations in which financial or other personal considerations may adversely affect, or have the appearance of adversely affecting, an employee's professional judgment in exercising any City duty or responsibility in administration,management, instruction,research, or other professional activities. Please check one of the following statements and attach additional documentation if necessary: To the best of our knowledge,the undersigned firm has no potential conflict of interest for this Proposal. The undersigned firm, by attachment to this form, submits information which may be a potential conflict of interest for this Proposal. Acknowledged by: Firm Name Signature Name and Title(Print or Type) Date KFI' 1(-UUb Auditing Services 27 RFP#17-005 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 TELEPHONE(INCLUDE AREA CODE) FAX (INCLUDE AREA CODE) E-MAIL ADDRESS IF REMITTANCE ADDRESS IS DIFFERENT AUTHORIZED SIGNATURE(manual) FROM PURCHASE ORDER ADDRESS, PLEASE INDICATE BELOW: NAME/TITLE(PLEASE PRINT) STREET ADDRESS CITY STATE ZIP FEDERAL ID# Individual Corporation Partnership Other(Specify) Sworn to and subscribed before me this day of ,20 . Personally Known or Produced Identification Notary Public- State of (Type of Identification) County of Signature of Notary Public Printed,typed or stamped Commissioned name of Notary Public kt N 1 -005 Auditing Services 28 EXHIBIT A Summary of Significant Accounting Policies (10 pages, numbered 30-39) — Available on Demandstar kF1' 1 -UU5 Auditing services 29 PROPOSED AGREEMENT FOR AUDITING SERVICES This agreement is entered into this day of , 2017 between the City of Ocoee, a municipal corporation of the State of Florida, hereinafter referred to as the "City" and , a firm of Certified Public Accountants registered and licensed in the State of Florida, hereinafter referred to as the "Auditors". WITNESSETH: That for and in consideration of the mutual performance of the terms and conditions herein,both parties agree, as follows: SECTION 1: PURPOSE AND SCOPE OF THE ENGAGEMENT 1. Except as set forth in Section 8 hereof, the audit will be performed as indicated in Request for Proposals "RFP" #17-005 and addenda, "Exhibit A", and will encompass the City's financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information (collectively the "financial statements") as of and for the fiscal year ended September 30, 2017, September 30, 2018, and September 30, 2019 and shall be accomplished in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the Single Audit Act of 1996, the provisions of OMB Circular A-133 and the provisions of Section 11.45, Florida Statutes. The Auditors shall utilize the guidance provided in the AICPA audit guide, Audits of State and Local Governments. The Auditors shall also consider any specific grant, bond or other legal covenant or requirement in performing the audit. The objective of an audit is the expression of opinions concerning whether the financial statements present fairly, in all material respects, the financial position of the City and the results of its operations and cash flows of its Proprietary Funds in conformity with accounting principles generally accepted in the United States of America. As part of the audit, the Auditors shall consider the City's internal controls over financial transactions and assess control risk, as required by auditing standards generally accepted in the United States of America, for the purpose of establishing a basis for determining the nature, timing, and extent of auditing procedures necessary for expressing the Auditor's opinion concerning the financial statements. The Auditors shall also consider and test the City's internal control policies and procedures used in administering federal financial assistance programs. The management of the City is responsible for establishing and maintaining internal controls. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs for internal control policies and procedures. The objectives of internal controls are to provide City management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with City RFI' 1/-UUb Auditing services 30 management's authorization and recorded properly to permit the preparation of financial statements in accordance with accounting principles generally accepted in the United States of America. Because of the inherent limitation in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of internal controls to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. As required by Government Auditing Standards, the Auditors shall prepare a separate written report on their understanding of the City's internal controls. The report shall include, but is not limited to: (1) the scope of the Auditors' work in obtaining and understanding of the internal controls and in assessing the control risk, (2) the City's significant internal controls including the controls established to ensure compliance with laws and regulations that have a material impact on the general purpose financial statements, (3) the reportable conditions, including the identification of material weakness, identified as a result of their work in understanding and assessing control risk and (4) all other matters normally included in a financial audit as defined by Section 11.45(1)(c), Florida Statutes. The audit shall include, but not be limited to, procedures designed to provide reasonable, rather than absolute, assurance of detecting errors and irregularities that are material to the financial statements. The Auditors shall inform the City with respect to illegal acts or material errors or irregularities that come to their attention during the course of the audit. Compliance with the laws and regulations, contracts, and grants applicable to the City is the responsibility of the City's management. As part of obtaining assurance about whether the financial statements are free of material misstatement, the Auditors shall perform tests of the City's compliance with certain provisions of laws, regulations, contracts, grants and other matters. As required by OMB Circular A-133 and the Florida Single Audit Act, the Auditors shall consider and test the City's internal control policies and procedures used in administering Federal and State award programs. Based on this consideration and these tests, the Auditors shall assess risk and determine the nature, timing, and extent of testing compliance with requirements that, if not complied with, could have a material effect on a major Federal or State award program. However, tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed in the Auditors report on internal control pursuant to OMB Circular A-133. In addition, the Auditors shall prepare a separate written Management Letter as defined by Section 11.45(1)(f), Florida Statutes, defined in Chapter 1o.55o, Rules of the Auditor General. A draft of the management letter shall be discussed with the City Manager or his designee before its issuance in its final form. At the conclusion of each engagement, the City's management shall provide to the kl-F, 1/-UUb Auditing Services 31 Auditors a representation letter that, among other things, shall confirm management's responsibility for the preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America, the availability of financial records and related data, the completeness and availability of all minutes of City Commission meetings, and the absence of irregularities involving management of those employees who have significant roles relating to internal controls. 2. The Auditors shall assist and review the Comprehensive Annual Financial Report ("CAFR") at the request of Management. 3. The Auditors shall be available to attend such public meetings as may be necessary for discussion of the final audit report. 4. The Auditors shall perform a substantial portion of the audit on City premises. The City shall furnish reasonable adequate working space that is well lighted, reasonable comfortable and proximate to accounting and accounting records. 5. The Auditors shall provide all equipment, materials, supplies and personnel services to perform the audit. SECTION 2: AUDIT STANDARDS AND PROCEDURES 1. The Audit shall be performed by personnel outlined in the firm's response to Request for Proposals (RFP) #17-005, "Exhibit B". Any changes in senior level personnel from those identified in the proposal must be approved by the City's Finance Director. 2. The Auditors may reasonably utilize the City's staff to perform work of an assisting (data gathering) nature, consistent with auditing standards generally accepted in the United States of America, and whenever qualified City employees are reasonably available. This shall be coordinated with the Finance Director or designee. 3. The Auditors agree that the City and the Auditors are subject to the public records laws of the State of Florida with regard to records that are, in fact, public records. Public records, as defined by State law, shall be subject to said laws, but not records that are not public records. The Auditors shall be entitled to rely upon and assert all provisions of the State's public records laws relating to exemptions and confidentiality of records. The Auditors may be subject to the Public Records Laws only with regard to certain records in that all records. The Auditors assert that work papers for this Agreement are the property of the Auditors and constitute confidential information. Such work papers shall be maintained for a minimum of three (3) years after the date of a completed audit or as may otherwise be required by law. In addition to public records being subject to the provision of the State's public records laws, the Auditors may fully interact with other agencies of government in accomplishing the audit. KFI' 1 -OOb Auditing Services 32 4. The Auditors shall not assign, sublet or otherwise dispose of, without first obtaining written consent of the City's Finance Director, the services to be performed pursuant to this Agreement, or any portion thereof. 5. All work and reports performed and submitted by Auditors pursuant to this Agreement shall be in accordance with applicable State and Federal laws, rules and regulations. 6. The City shall reasonably make available to the Auditors any and all financial records, books, supporting documents, City Commission minutes, policies, contracts, agreements, budgets, personnel assistance and any other records or requests as may be mutually considered necessary in the conduct of the aforesaid audit related services. 7. The Auditors shall coordinate with the City's Finance Director for the purpose of arranging an exit conference at the conclusion of the audit of the City and conduct said conference with the City Manager or his designee. A draft copy of all reports shall be provided by the Auditors to the Finance Director for inspection prior to the said audit exit conference meeting. 8. The Auditors shall keep adequate records and supporting documentation applicable to this Agreement. Said records and documentation shall be retained by the Auditors for a minimum of three (3)years from the issuance of the audit to the City Commission. 9. In order to properly serve the public interest, if the Auditors, in the course of their audit examination, should discover evidence pointing to a nonfeasance, malfeasance or misfeasance on the part of any officer or employee of the City or its agencies, the Auditors shall immediately give notice thereto to the City Manager unless the City Manager is the subject of the inquiry, in which case the notice shall be given to the Mayor and City Commission. 10.Audit Requirements for Fiscal Year September 30, 2017, September 30, 2018, and September 30, 2019 shall commence upon execution of this Agreement by both parties. 11. During the performance of this Agreement, the Auditors shall maintain in compliance with Title VII of the 1964 Civil Rights Act, as amended, and the Florida Human Rights Act of 1977 and shall not on the grounds of race, color, national origin, religion, sex, age, disability, or marital status, discriminate in any form or manner against said Auditors' employees or applicants for employment. Auditors understand and agree that this Agreement is conditioned upon the veracity of this statement of assurance. The Auditors shall comply with Title VI of the Civil Rights Act of 1964 when Federal grants are involved. Other applicable Federal and State Laws, executive orders, rules and regulations prohibiting discrimination as hereinabove referenced are included by this reference hereto, to include Vietnam era veterans within its protective range of applicability. kFN 1 1-UUb Auditing services 33 12. This Agreement shall be governed by the laws of the State of Florida. Venue for any actions arising out of the Agreement will lie in Orange County, Florida. SECTION 3: FEES AND TERMS OF PAYMENT 1. The City shall pay the Auditors the total fee based on the firm's proposal submitted for RFP #17-005, "Exhibit B", for the audit of fiscal year ending September 30, 2017, September 30, 2018, and September 30, 2019. The parties hereto recognize that the firm's response to the RFP was based on a multi-year contract and that this contract is being executed for three (3) years with an automatic renewal option for an additional two (2) years. The Agreement shall continue in full force and effect from the date first written above or until terminated in accordance with this Agreement. The City shall have the option of extending the term an additional one (1) year. The parties hereto agree that the total fee for the services set forth herein shall be as set forth on Exhibit "B" attached hereto and that said Exhibit"B:" shall control in the event of any conflict with the firm's proposal submitted in response to the RFP. 2. The Auditors will render interim billings as work progresses and the City agrees to pay the interim billings within 30 (thirty) days after receipt. Interim payments shall be determined by the percentage of work completed at the time an invoice is submitted. 3. The City shall pay the final billing within thirty (30) days after all the following conditions have been met: a. Auditors have rendered their signed Independent Accountant's Report and applicable Internal Control and Compliance reports b. Auditors have rendered the final Management Recommendation Letter c. Auditors have submitted the CAFR in "printer's proof'format; d. Auditors have provided the requisite copies of the CAFR. e.All requested City Commission meetings and staff conferences have been completed. 4. The Auditors shall comply with all applicable labor laws regarding employment and pay of its employees. 5. Compensation payable pursuant to Section 4 and any amendments to this Agreement may be withheld if the final audit report does not meet the requirements of Section 11.45, Florida Statutes, and/or any other State or Federal laws, rules and regulations applicable to said audits. Compensation may be withheld until all discrepancies are corrected and conform to above kI-F' 11-UU5 Auditing Services 34 requirements. SECTION 4: ADDITIONAL SERVICES 1. The Auditors are not required to render any information or services to employees of the City or to make any studies or investigations at the request of any individual, except herein provided for. However, the Auditors shall reasonably interact with and provide information to the Mayor, the City Commissioners and City staff. The Auditors shall respond to such incidental inquiries without additional charges to the City. If, in the Auditors' reasonable judgment, the level of time for such inquiries becomes substantial, the Auditors will notify the City Manager. 2. The City may, from time to time, desire the Auditor to change or increase the scope of work. This may include the addition of records and procedures in its audit program. Such requests for additional work will be submitted in writing to the Auditor by the Finance Director for consideration for approval by the City Commission. The Auditor will be compensated based on a negotiated hourly billing rate at the time of the approval. Additional services will be billed to the City separately. 3. The Auditors shall notify the City's Finance Director of any comments received from the Auditor General of the State of Florida regarding any deficiencies noted in the reports of the City. 4. The Auditors shall disclose any findings disclosed in Peer Review reports regarding the audit of the City. 5. The Auditors shall perform a full scope audit of the City, which includes an audit of the financial statements and compliance as required by Governmental Auditing Standards. Throughout the term of this Agreement, if significant increases or decreases in the required scope of the audit are necessary due to changes in regulatory or other authoritative pronouncements, the impact of these changes will be discussed to arrive at a new fee estimate. However, if changes occur that do not significantly affect those procedures normally performed under as full scope audit; no change in the fee will be necessary. SECTION 5: INSURANCE Prior to commencement and until termination of work for or on behalf of the City, the Auditors shall procure and maintain insurance of the types and to the limits specified in RFP #17-0o5. The term "City" as used in this section of the Agreement is defined to mean the City of Ocoee itself, any subsidiaries or affiliates, elected and appointed officials, employees, volunteers, representatives and agents. kF}- 1 1-UUb Auditing services 35 SECTION 6: FORCE MAJEURE Auditor shall not be liable for any failures or delays resulting from circumstances or causes beyond its reasonable control, including, without limitation, acts or omissions due to fire or other casualty, act of God, strike or labor dispute, war or other violence, or any law, order or requirement of any governmental agency or authority. SECTION 7: INDEMNITY Each party ("Indemnifying Party") shall indemnify and hold harmless the other ("Indemnified Party") from any and all claims, suits, actions, liabilities and reasonable defense costs, in each case solely for bodily injury to individuals and physical damage to tangible property to the extent directly and proximately caused by the acts or omissions of the Indemnifying Party while the Auditor is engaged in the performance of services under this Contract; provided however, that if there is also fault on the part of the Indemnified Party, the forgoing indemnity shall be on a comparative fault basis, and provided further, however, that the City's obligation hereunder shall only exist to the extent permissibly by law and to the extent set forth in Section 768.28, Florida Statutes. As a condition to the foregoing indemnity obligations of the Indemnifying Party, the Indemnified Party shall provide with the Indemnifying Party with reasonable prompt notice of any claim for which indemnification may be sought hereunder and shall cooperate with the Indemnifying Party in connection with such claims. The Indemnifying Party shall be entitled to control the handling of any such claim and to defend or settle any such claim, in its sole discretion, with counsel of its own choosing; provided, however, that the Indemnifying Party shall have no authority to admit liability on behalf of the Indemnified Party; and provided further, however, that the Indemnifying Party shall not be entitled to control the handling of any such claim against the Indemnified Party if the Indemnified Party asserts that there is also fault on the part of the Indemnified Party. The provisions of this Section are solely for the benefit of the parties hereto and not intended to grant any rights, contractual or otherwise to any other person or entity. Because of the importance of the City's management's representations, the City agrees to release and indemnify Auditor and its personnel form all claims liabilities and expenses relating to its services under this Agreement attributable to any material misrepresentation by City management to the extent and limits permitted by law. SECTION 8: CONTRACT PERIOD This Agreement covers the City's fiscal years ending September 30, 2017, September 30, 2018, and September 30, 2019. Notwithstanding any provision contained in the RFP, it is agreed that the Agreement covers the audits for the fiscal year ending September 30, 2017, September 30, 2018, and September 30, 2019 with an automatic renewal option for an additional two (2) years. The Agreement shall continue in full force and effect KI-P 1 I-Mb Auditing services 36 from the date first written above or until terminated in accordance with this Agreement. The City shall have the option of extending the term an additional one (i)year. SECTION 9: TERMINATION This Agreement may be terminated at will by the City at any time by giving thirty (30) days written notice thereof. In the event of such termination, the City shall pay the Auditors for the reasonable value of services rendered and expenses incurred by the Auditors, up to the effective date of such termination. The Auditors may only terminate this Agreement for cause. Disputes arising under this Agreement (including, but not limited to, scope, nature and quality of services to be performed by the Auditor, the Auditors' fees and other terms of engagement) shall be submitted to mediation. A competent, and impartial third party, acceptable to both parties, shall be appointed to mediate and each disputing party shall pay in equal percentage of the mediator's fees and expenses. No suit or arbitration proceeding shall be commenced under this Agreement until at least sixty (60) days after the mediator's first meeting with the involved parties. In the event that the dispute is required to litigated, the court shall be authorized to assess litigation costs against any party found not to have participated in the mediation process. SECTION 10: AMERICANS WITH DISABILITIES ACT OF 1990 (ADA) The Auditors shall comply with all the requirements as imposed by the ADA, the regulations of the Federal government issued thereunder, and any and all requirements of State law related thereto. SECTION 11: WHEN RIGHTS AND REMEDIES NOT WANED In no event shall the making by the City of any payment to the Auditors constitute or be construed as a waiver by the City of any breach of covenant or any default which may then exist, on the part of the Auditors, and the making of such payment by the City while any such breach or default shall exist shall in no way impair or prejudice any right or remedy available to the City with respect to such breach or default. SECTION 12: NON-ASSIGNABILITY Neither party shall assign and Agreement without the prior written consent of the other party. SECTION 1l: HEADINGS All articles and descriptive headings of sections in this Agreement are inserted for convenience only and shall affect the construction or interpretation hereof. SECTION 14: NOTICES kr -' 1 I-UUb Auditing services 37 (a) Whenever either party desires to give notice unto the other, it must be given by written notice, sent by registered United States mail, with return receipt requested, addressed to the party for whom it is intended, at the place last specified, and the place for giving of notice shall remain such until it shall have been changed by written notice in compliance with the provisions of this section. For the present, the parties designate the following as the respective places for giving of notice, to wit: For City: Finance Director City of Ocoee 15o N. Lakeshore Drive Ocoee, Florida 34761 (407)905-3190 For Auditors: (b)Either of the parties may change, by written notice as provided herein, the address or person for receipt of notice. SECTION 15: CONFLICT OF INTEREST The Auditors agrees that they will not engage in any action that would create a conflict of interest in the performance of its obligations pursuant to this Agreement with the City or which would violate or cause others to violate the provisions of Part III, Chapter 112, Florida Statutes, relating to ethics in government. SECTION 16: SEVERABILITY OF INVALID PROVISIONS If any one (i) or more of the covenants or provisions of this Agreement shall be held to be contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or shall, for any reason whatsoever, be held invalid, then such covenants or provisions of this Agreement, and shall, in no way, affect the validity of the remaining covenants or provisions of this Agreement. SECTION 17: TIME OF THE ESSENCE Time is of the essence of the lawful performance of the duties and obligations contained in this Agreement. The parties covenant and agree that they shall diligently and expeditiously pursue their respective obligations set forth in this Agreement. kF1' 1 I-UU5 Auditing services 38 SECTION 18: APPLICABLE LAW This Agreement and the provisions contained herein shall be construed, controlled and interpreted according to the laws of the State of Florida. SECTION 19: BINDING EFFECT Each party hereto represents to the other that it has undertaken all necessary actions to execute this Agreement, and that it has the legal authority to enter into this Agreement and to undertake all obligations imposed on it. SECTION 20: CHOICE OF LAW AND VENUE Florida law shall govern the interpretation and enforcement of this Agreement. In any action or proceeding required to enforce or interpret the terms of this Agreement,venue shall be in the Circuit Court for the 9th Judicial Circuit of Florida for Orange County, Florida. SECTION 21: CONSTRUCTION OR INTERPRETATION OF THE AGREEMENT This Agreement is the result of bona fide arms length negotiations between the City and the Auditors and all parties have contributed substantially and materially to the preparation of the Agreement. Accordingly, this Agreement shall not be construed or interpreted more strictly against any one party than against any other party. (Signature page follows.) J-l' 1/-UUb Auditing Services 39 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written. Signed, sealed and delivered Firm: In the presence of: By: Print Name Name: Title Print Name (Company Seal) APPROVED: ATTEST: CITY OF OCOEE,FLORIDA, a Florida municipal corporation Melanie Sibbitt, City Clerk Rusty Johnson, Mayor DATE: (SEAL) FOR USE AND RELIANCE ONLY BY APPROVED BY THE OCOEE CITY THE CITY OF OCOEE,FLORIDA COMMISSION AT A MEETING HELD APPROVED AS TO FORM AND LEGALITY ON ,2017, this day of , 2017. UNDER AGENDA ITEM NO. . SHUFFIELD, LOWMAN & WILSON,P.A. By: Scott A. Cookson, City Attorney ki-i- 1 i-UU5 Auditing services 40 EXHIBIT A RFP #17-005 and ADDENDA (see attached) kF-F' 1 1-U0b Auditing Services 41 EXHIBIT B FIRM'S PROPOSAL TO RFP #17-005 (see attached) kt-P 1 -UUb Auditing Services 42 Mayor Commissioners Rusty Johnson John Grogan, District 1 Rosemary Wilsen, District 2 City Manager Richard Firstner,District 3 Robert Frank4 Joel F.Feller,District 4 ocoee florid() August 30, 2017 ADDENDUM NO: ONE (1) CITY OF OCOEE RFP#17-005 AUDITING SERVICES This addendum consists of twenty-eight (28) pages, including the attached continuing disclosure requirements, and shall modify and become a part of the original RFP documents for auditing services. Respondents shall acknowledge receipt of this Addendum in the space providedon p.16 of the RFP documents. Failure to do so may subject the Respondent to disqualification. Answers to questions received and/or amendments to the RFP documents are as follows: Q 1. Are the pension plans audited separately by auditors other than the City auditor? Al. The City's pensions are audited separately. Q2. Is it the City's intent that the auditors will prepare the basic financial statements? Is it the City's intent that the auditors will prepare the additional items necessary to create the CAFR? A2. It is the City's intent that the auditors prepare the basic financial statements including the sections noted in the 2016 CAFR as: Financial Section,Management's Discussion and Analysis,Notes to Financial Statements, Required Supplementary Information,Non-major Governmental Funds,Fiduciary Funds and Other Reports. The Other Reports section will be expanded to include continuing disclosure requirements associated with the Series 2016 and 2017 Bonds issued in FY 2017. Copies of the disclosures made coincident to the 2016 CAFR are attached for reference. The continuing disclosure portion as well as the remaining sections/information will be prepared by the City. Q3. What additional services have been billed by the prior auditors?Can you please provide a summary of the total amounts paid to McDirmit Davis&Company for each of the prior three audit periods? A3. No additional services have been billed by the auditors for the prior three audit periods. McDirmit's fees were$38,000 annually for each of the prior three audit periods. Tol.-rt, CPPB Purchasing Agent attachment: continuing disclosure requirements cc:RFP Evaluation Committee 3 • RULE 15c2-12 FILING COVER SHEET This cover sheet is sent with all submissions to the Municipal Securities Rulemaking Board (the Nationally Recognized Municipal Securities Information Repository) and any applicable State Information Depository pursuant to Securities and Exchange Commission (SEC) Rule 15c2-12 or any analogous state statute. Issuer Name:City of Ocoee,Florida Issues): $ 21,800,000 Water and Sewer System Revenue and Refunding Revenue Bonds,Series 2016 Filing Format X electronic paper;If available on the Internet,give URL: CUS1P Numbers to which the information filed relates(optional): X Nine-digit number(s)(see following page(s)): Six-digit number if information filed relates to all securities of the issuer Financial&Operating Data Disclosure Information X Annual Financial Report or CAFR X Financial Information&Operating Data _Other(describe) X Fiscal Period Covered: PIE 2016 _Monthly^Quarterly X Annual Other: * * * I hereby represent that I am authorized by the issuer or its agent to distribute this information publicly: Signature: Name: Robert Briggs,Jr. Title:Finance Director Employer:City of Ocoee,Florida Voice Telephone Number: (407)554-7098 Email Address: rbriggs©ci.ocoee.fl.us DESCRIPTION OF ISSUES COVERED BY THIS REPORT Water and Sewer System Revenue and Refunding Revenue Bonds,Series 2016 Date Principal CUSIP 10/01/17 $ 725,000 67556HCD9 10/01/18 890,000 67556FICE7 10/01/19 915,000 67556HCr4 10/01/20 945,000 67556HCG2 10/01/21 980,000 67556FICHO 10/01/22 1,015,000 67556HC76 10/01/23 1,075,000 67556HCK3 10/01/24 1,125,000 67556HCL1 10/01/25 1,175,000 67556HCM9 10/01/26 1,235,000 67556HCN7 10/01/27 1,275,000 67556HCP2 10/01/28 1,335,000 67556HCQ0. 10/01/29 1,405,000 67556HCR8 10/01/30 1,470,000 67556HCS6 10/01/31 1,550,000 6755611CT4 10/01/32 1,630,000 67556HCUI 10/01/33 1,705,000 67556HCV9 10/01/34 435,000 6755611CW7 10/01/35 450,000 67556HCX5 10/01/36 465,000 67556HCY3 $ 21,800,000 CONTINUING DISCLOSURE REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 CITY OF OCOEE, FLORIDA WATER & SEWER REVENUE DEBT F5CContinuin DisclosureServices A Division of Hilltop Securities. FINANCIAL STATEMENTS The audited financial statements for the City for the fiscal year ended September 30, 2016 are being separately filed directly with the Nationally Recognized Municipal Securities Information Repository and any applicable State Information Depository, and aro hereby incorporated by reference into this Annual Continuing Disclosure Report. SIGNATURE OF ISSUER The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed as to accuracy or completeness and is not to be construed as a promise or guarantee. This Annual Continuing Disclosure Report may contain,in part, estimates and matters of'opinion which are not intended as statements of fact,and no representation is made as to the correctness of such estimates and opinions, or that they will be realized. The information and expressions of opinion contained herein are subject to change without notice,and the delivcmy of this Annual Continuing Disclosure Report will not, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described. CITY OF OCOEE,FLORIDA bent Briggs,Jr. • • Finance Director Approved for Submission: Date CERTIFICATE OF SUBMISSION OF ANNUAL REPORT Subject to the continuing disclosure requirements of SEC Rule 15c2-12, this Annual Continuing Disclosure Report for the City of Ocoee,Florida with respect to the issues listed on the report cover was submitted directly to the National Recognized Municipal Securities Information Repository ("NRMSIR")listed below as well as to any applicable State Information Depositary("SID"). NRMSI1 Municipal Securities Rulemaking Board("MSRB") via the Electronic Municipal Market Access("EMMA")system FSC Continuing Disclosure Services,A Division of Hilltop Securities Inc. • Signed by: CITY OF OCOEE,FLORIDA 2017 WATER&SEWER REVENUE DEBT REPORT THE SYSTEM The City owns and operates potable water,wastewater,and public-access reuse(reclaimed water) systems within the City's utility service boundary in the County. As of September 30,2016,over the prior 12 months,the City had an average of 11,567 water accounts,an average of 7,933 sewer accounts and an average of 4,505 reclaimed water accounts. Additionally, the City provides a portion of its service area with up•to 3,0 million gallons per day("mgd")of reclaimed water,which conserves the valuable potable water supply. Existing Water System Facilities Historical Water Treatment Plants Annual Flow Annual Maximum Year Average Daily Daily Flow MDF/AADF Plow(mgd) (mgd) 2010 3.23 5.36 1.66 2011 3,51 6.76 1.93 2012 3.38 6.41 1.9 2013 2.93 4,78 1.63 2014 3.15 4.69 1,49 2015 3.58 5.49 1.53 2016 3,65 6.24 1.71 Avg. 3.35 5.68 1.69 Total Permitted Capacity=10.85 mgd at Maximum Daily Flow Existing Wastewater Treatment Facility Historical WasteWater Treatment Plant Annual Flow Annual Maximum Year Average Daily Daily Flow MDF/AADF Flow(mgd) (Ingd) 2010 1.56 2.82 1.80 2011 1.61 2.07 1.28 2012 1.63 2,38 1.46 2013 1.61 2.01 1,25 2014 1.59 2.00 1.26 2015 1.57 1.73 1,10 • 2016 1.65 1.75 1.06 Avg. 1.60 2.11 1,32 Total Permitted Capacity=3.0 mgd Future Flow Projections and Capacity Future Water Projections Annual Average Maximum Daily Year Timeline Daily Flow(ingd) Flow(mgd) 2016 Existing 3.58 5.49 2020 Future 3.84 5.88 2025 Future 4.26 6.51 2030 Future 4.67 7.14 Total Permitted Capacity: 10.85 Maximum Daily Flow Future WasteWater Projections Annual Average Maximum Daily Year Timeline Daily Flow(mgd) Flow(mgd) 2016 Existing 1.57 1,73 2020 Future 2.46 2,72 2025 Future 2.60 2.88 2030 Future 2.75 3.04 Total Permitted Capacity=3,0 tngd(AADF);Buildout Capacity=4,0 mgd Future Reclaimed Water Projections Annual Average • Year Thneline Daily Flow(mgd) • 2016 Existing 2.70 2020 Future 3.04 2025 Future 4.09 Total Available Future 2025 Reclaimed Water Supply=S,40 tngd AADF 2 Rates and Fees Beyond Fiscal Year ending September 30,2016,it is assumed the rates will be increased pursuant to the rate indexing provision from Chapter 173,Article 1,Subsection 173-4(F)of the City's Code of Ordinances (the "Indexing Provision"). The following table provides the estimated System Average Rate Percentage Adjustment. System Average Rate Percentage Adjustment(t) Wastewater Reclaimed Fiscal Year Water System System System 2016 3.00% 3.00% 3.00% 2017 3.00% 3,00% 3.00% 2018 3.00% 3.00% 3.00% 2019 3.00% 3.00% 3.00% 2020 3.00% 3.00% 3.00% 2021 3.00% 3.00% 3.00% (I) Rate adjustment to become eflbctivo with services rendered on October I oreach Fiscal Year • 3 Water System Rales.The following table displays the base and volumetric rates for residential and non-residential potable water. WATER SYST1 M RATES Meter Type Charge 3/4 inch meter $11,03 1 inch meter $27.51 1-I/2 inch meter $55.03 2 inch meter $88.05 3 inch meter $176.16 4 inch meter $275.21 6 inch meter $550.44 8 inch meter $880.42 Residential Volumetric Charge Quantity of Water(Gallons) C9st($ner 1,000 GallansI 0-6,000 $1.20 6,000- 12,000 $1.51 12,000- 18,000 $1.89 18,000-24,000 $4.73 24,000-30,000 $7.08 >30,000 $8.63 Non Residential Volumetric Charge Quantity of Water(Gallons) Cost($per 1,000 Gallons) 0-6,000 $1.20 6,000- 12,000 $1.51 12,000- 18,000 $1.89 > 18,000 $2.83 4 Sewer System Rates-The following table displays the base and volumetric rates for residential and non-residential wastewater collection and transmission. • SEWER SYSTEM RATES Meter Type Charge f 3/4 inch meter $19.87 t inch meter $49.75 1-1/2 inch meter $98.78 2 inch meter $159.18 3 inch meter $318.40 4 inch meter $497.49 6 inch meter $998.37 8 inch meter $1,591.99 Residential Volumetric Charge Quantity of Water(Gallousi Cost($per 1.000 Gallons) 0- 12,000 $2.84 > 12,000 $0.00 Non Residential Volumetric Chargo Quantity of Water(Gallons) Cost($per 1.000 Gallons) 0- 12,000 $2.84 > 12,000 $2.84 •5 • Reclaimed Water System Rates.The following table displays the base and volumetric rates for residential and non-residential reclaimed water from the City. RECLAIMED WATgItc$YSTEIV1RATES - • • Meter Typo Charge 3/4 inch meter $8.24 1 inch meter $20.63 1-1/2 inch meter $41.28 2 inch meter $66.03 3 inch meter $132,10 4 inch meter $206.42 6 inch meter $400.83 8 inch meter $641.10 10 inch meter $921.88 12 inch meter $2,215.45 Residential Volumetric Charge Ouantity of Water(Gallons) Cost($per 1.000 Gallons'). 0-6,000 $0.87 6,000-12,000 $1.14 12,000-18,000 • $1.42 > 18,000 $2.11 Non Residential Volumetric Charge Ouantity of Water(Gallons) Cost($per 1,000 Gallons) 0-6,000 $0.84 6,000-12,000 $1.10 12,000-18,000 $1.38 > 18,000 $2.05 6 • Comparative Monthly Rates,The average monthly water and sewer service bill for customers using 6,000 gallons of water per month are$1823 and$36.91,respectively,for a total of$55.14. Existing Rates: Wates Wastewater; Total Existing City Rates Effective Oct. 1,2016 $18.23 $36.91 $55.14 Other Surveyed Florida Utilities: City of Apopka $15.58 $27.85 $43.43 City of Clermont 12.08 27.33 39.41 City of Groveland 16.00 31.33 47.33 City of Eustis 22,44 41,01 63.45 City of Haines City 15.06 47.92 62,98 City of Mount Dora 37.64 49,48 87.12 City of Maitland 16.95 48.70 65.65 City of Ocala 15.42 40.38 55.79 Orange County 14.34 37.13 51.47 City of Orlando/OUC 12,63 45.85 58.48 City of Leesburg 14.89 33,01 47.90 City of Oviedo 20.45 49.33 69.78 Polk County 22.56 75,02 97.58 i City of Sanford 19,76 42.84 62.60 Seminole County 19.43 48.45 67.88 City of St.Cloud 22.94 42.99 65.93 City of Tavares 25.06 39,76 64.82 Toho Water Authority(Kissimmee System) 14.10 38.37 52,47 • City of Winter Garden 12.38 29.62 42.00 Other Florida Utilities Average $18.41 $41.91 $60.32 Capital Facilities Charges.The City currently charges a Water System Capital Facilities Charge and a Sewer System Capital Facilities Charge(i.e.,a capacity or impact fee) imposed by the City upon and collected from new users of the Water System and Sewer System,as applicable,which represent an equitable and share of the capital costs of the Water System and Sewer System which are attributable to the increased demand such additional connections created upon the Water System and Sewer System. Capital Facilities Charge Water Capital Facilities Charge,per BRU $1,944.00 • Sewer Capital Facilities Charge,per BRU 5,767.00 Total Water and Sewer Capital Facilities $7,711.00 1 . j • 7 i I i • HISTORICAL AND PROJECTED SYSTEM SALES AND CUSTOMER USAGE Historical Growth of System Customers As of September 30,2016,over the prior 12 months, the System had an average of 11,567 water accounts,an average of 7,933 sewer accounts and an average of 4,505 reclaimed water accounts. Of the average 11,567 water accounts,approximately 93.72%are residential and 6.28%arc non- residential. Of the average 7,933 sewer customers, approximately 94.62% are residential and 5.38%are non-residential.Of the average 4,505 reclaimed water accounts,approximately 96.94% are residential and 3.06%are non-residential.The following table shows the historic growth of the System's customers. Historic Growth of System Customers Average Number of Active Accounts As of Reclaimed September30, Water Sewer Water 2011 10,535 7,039 2,461 . 2012 10,733 7,218 2,555 2013 10,924 7,408 2,808 2014 11,257 7,690 3,364 2015 11,403 7,819 4,194 2016 11,567 7,933 4,505 Historical Water System Customer and Sales Statistics Ave rge Monthly FYE September 30 Average Annual Water Sales(000's Water Use Per (Historical) Water Accounts of Gallons) Account(Gallons) 2011 10,535 1,277,679 10,107 2012 10,733 1,181,499 9,173 2013 10,924 1,129,667 8,618 2014 11,257 1,100,300 8,145 2015 11,403 1,097,826 8,023 2016 11,567 1,140,512 8,217 j Average Annual 2,00% -3.72% Historical Growth 8 Water System Customer Accounts The distribution of retail water customers by class served by the Water System for Fiscal Year ended September 30,2016 is shown on the following table.As can be seen below,approximately 93.72%of the total average annual accounts are classified by the City as residential service. Fiscal Year Ended September 30,2016 Average Annual No.of Customers Percent to Total Residential 10,841 93.72% Non-residential 726 6.28% Total 11,567 100,00% Historical Sewer System Customer and Sales Statistics Averge Monthly INE September 30 Average Annual Sewer Sales(000's of Sewer Use Per (Historical) Sewer Accounts Gallons) Account(Gallons) 2011 7,039 844,466 9,997 2012 7,218 793,297 9,159 2013 7,408 773,778. 8,704 2014 7,690 763,312 8,272 2015 7,819 747,427 7,966 2016 7,933 784,659 8,243 Average Annual 2.66% 3.01% Historical Growth Sewer System Customer Accounts The distribution of sewer customers by class for Fiscal Year ended September 30,2016 is shown on the following table.As shown below,the residential class accounts for approximately 94,62% of the sewer accounts served and is consistent with the Water System customer relationships. Fiscal Year Ended September 30,2016 Average Annual No. of Customers Percent to Total Residential 7,506 94.62% Non-residential 427 5.38% Total 7,933 100.00% 9 Historical Reclaimed System Customer and Sales Statistics Avorge FYE September 30 Average Annual Reclaimed Sales Reclaimedd Use Use Per (Historical) Reclaimed Accounts (000's of Callon) Account(Gallons) 2011 2,461 510,103 17,273 2012 2,555 568,144 18,530 2013 2,808 520,652 15,451 2014 3,364 609,566 15,100 2015 4,194 809,936 16,093 2016 4,505 936,500 17,323 Average Annual Historical Growth 14.26% 12.25% Rate Reclaimed Water System Customer Accounts The distribution of reclaimed water customers by class for Fiscal Year ended September 30,2016 is shown on following table. As shown below, the residential class accounts for approximately 96.94%of the reclaimed water accounts served. Fiscal Year Ended September 30,2016 Average Annual No. of Customers Percent to Total Residential 4,367 96.94% Non-residential 138 3.06% Total 4,505 100.Q0% 10 • Projected Water and Sewer Systems Customer and Sales Projected Water Customers(Accounts)and Sales Statistics- Water System Average Annual Average Fiscal Year Ending No.of Billed Flow Monthly Use September 30, Customers (000s) per Account 2016 11,567 1,140,512 8,217 2017 11,766 1,160,171 8,217 2018 11,965 1,179,830 8,217 2019 12,164 1,199,489 8,217 2020 12,363 1,219,148 8,217 2021 12,565 1,238,807 8,217 Average Annual Projected Growth Rate 1.67% 1.67% Projected Sewer Customers(Accounts)and Sales Statistics- Sewer System Average Annual Average Fiscal Year Ending No,of Billed Plow Monthly Use September 30, Customers (000s) per Account 2016 7,933 755,482 8,243 2017 8,065 797,763 8,243 2018 8,200 811,085 8,243 2019 8,337 824,631 8,243 2020 8,476 838,402 8,243 2021 8,618 852,403 8,243 Average Annual Projected Growth 1,67% 1,67% Rate Projected Reclaimed Water Customers(Accounts)and Sales Statistics- Reclaimed Water System Average Annual Average Fiscal Year Ending No,of Billed Flow Monthly Use September 30, Customers (000s) per Account 2016 4,505 936,500 17,323 2017 4,580 952,140 17,323 2018 4,657 968,040 17,323 2019 4,734 984,207 17,323 2020 4,814 1,000,643 17,323 2021 4,894 1,017,354 17,323 Average Annual Projected Growth 6.73% 6.73% Rate II Ten Largest Customers Top Ten Water and Sewer Utility Customers as of September 30,2016(Bused on System Revenue) System %of Total City Customer Class Type of Service Revenue Sales Revenue Health Central Commercial Water&Sewer $165,276 1.57% Pal Of I,LLC Commercial Water&Sewer 121,584 1,15% Good Homes Orlando,LLC Commercial Water&Sewer 93,771 0.89% West Oaks Mall Commercial Water&Sewer 38,484 0.37% Summerville Healthcare80380 Commercial Water&Sewer 38,119 0.36% Inland American Commercial Water&Sower 34,328 0.33% Ocoee Health Facilities LP Commercial Water&Sewer 34,264 0,33% Wal-Mart Stores Inc. Commercial Water&Sewer 31,010 0.29% Health Services of Ocoee Commercial Water&Sewer 29,404 0.28% OP Key Isle I&2 Commercial. Water 23.741. 11.23%n Totals $609,981 5.80% I 12 HISTORICAL AND PROJECTED OPERATING RESULTS Summary of Historical Operating Results • Fiscal Year Ending September 30, Description 1s'tl2 2011 21114 IQ1S Gross Reventa Charges for Services q's" $8,485,818 58,716,867 $9,135,979 $9,661,140 $10,541,636 investmentbeome° 90,414 13,541 72,500 80,625 67,212 Transfers Intl) 3.500 5.500 5.500 5.500 5.500 Total Gross Revenue $8,581,732 $8,735,908 $9,233,979 $9,747,265 $10,614,348 Cost ofOoersllon and Mabuenance t" Cost of Operation and Maintenance 54,473,607 54,703,252 $4,770,780 $5,270,360 $5,225,155 General Rind Administration Transfer t" 1,350,007 1430,790 ' 1,236,091 1,478,749 1,723,728 Lou on Disposal of Capital Assets 111.545 0 0 14.356 17.769 Total Cost of Operation andMainirnance $5,935,159 $6,134,042 $6,006,871 $6,763,463 $6,966,652 Net Revenues Available(hr Debt Service Coverage $2,646,573 $2,601,866 $3,227,108 $2,983,800 $3,647,696 Bond Service Requirement-Senior Iden Debt Water and Sewer System Reassdng and improvement Remiss $791,338 3789,538 $27,264 $0 $0 Bonds.Series 2003 0 0 0 Water and Sower System Refunding Revenue Note,Series 2008 243,660 23,519 Water and Sower System Refracting Revenue Note,Series 2010 371,421 369,453 372,381 374,101 375,539 Water and Saver System Re(tutdingRovcnteNole,Series 2012 0 155,992 175,174 178,976 176,731 Water stud Sewer System Refbnuding Revenue Note,Series 2013 0 0 708,977 703,500 705,578 • Water and Sewer System Refunding Rovcmte Both,Series 2016 0 0 0 0 0 'total Boal Service Reeuiremelns'Senior lien Debt° 51,406,419 $1,338,502 $1,283,796 $1,256,577 $1,257,871 Animal Debt Service(overage Calculations 1" Nei Revenues Available ibr Debt Service Coverage $2,646,573 $2,601,866 $3,227,108 $2,983,800 $3,647,696 Total Road Service Requirement $1,406,419 $1,338,502 $1,283,796 $1,256,577 $1,257,871 Other Required Deposits as 0 0 0 0 Subtotal $1,106,419 $1,338,502 $1,283,796 , $1,256,577 51,257,871 Coverage Ratio'Calculated 188.18% 194.39% 251.37% 237.45% 289.99% Coverage Ratio.Requited 115.00% 115.00% 115.00% 115.00% 115.00% Net Revenues After Bond Service Requirement 51.240.154 51.263.364 51.943 312 51.727,223 52.389.825 (q Amounts include historical revenues Brom monthly water,reclaimed wafer mid wastewater rates effective for each respective historical year. (2) Amounts Include water,reclaimed water,and wastewater connection charges revenue,hater and wastewater maintenance fee revenue,septic pumping fees,violations of ordinance revenue,and other miscellaneous revenues. !. (3) Amounts shown only reflect earnings from funds and accounts established by the City that are considered unrestricted i (earnings not required to be retained in such'kinds mid accounts and are available as a component ofNet Revenues).Earnings from Capital Facilities Charges and the Construction Fund established are considered restricted to such accounts and arc not • considered as a component of not available revenues for this analysis. (4) Amounts shown is historical annual transfers in from the City's General Fund for the usage of property by the City's Parks and Recreation Department. P1 Amounts shown do not include depreciation and amortization expenses,which are uou-cash expenses and are not considered part of the Cost of Operation and Maintenance in accordance with the Resolution.Payments in lieu of taxes are also excluded ihom the Cost of Operation and Maintenance in accordance with the Resolution:"in determining Cost of Operation and Maintenance, there shall not be taken into account:(a)mty gain or loss resulting from either the extinguishment or refinancing orally Series of Bonds or other long-term indebtedness;(b)loss tom the sale,exchange or other disposition ofoapitai assets not made in theordinary course of business;(o)any capital expondihnres Ibr renewal,replacement,expansion or acquisition of capl(al easels(including any deposits or reserves thcrothr)and(d)payments in lieu onuses." (6) Administrative transfers are based on a cost allocation that includes among other costs:i)a portion of the costs for the utility counter;II)an allocation ofsaiarles costs(br two of the City engineers;ill)an allocation of mowing costs incurred by the public works deportment;and iv)a transfer equal to 12.0%of Cross Rate Revenues Ibr the reimbursement of other indirect costs incurred by the General Fund in support ofthnc Utility System. fn All outstanding Senior Lien Debt described in this ihte will be repaid upon the issuance of the Series 2016 Bonds.See "Summary of Projected Operating Results"for anticipated debt service for the Forecast Period following the issuance of the Series 2016 Bonds. m The Coverage Ratio is the Rate Covenant as described in the Resolution 13 . • ('s Other Required Deposits include the required deposits Into(I)the Reserve Fund(less any portion thereof to be deposited from proceeds of Bonds)together with any Reimbursements Obligations duo and owing in such Bond Year,and(ii)the Renewal, Replacement and Improvement Fund in such Bond Year. Summary of Projected Operating Results Mummy(of Projected Opt Padua Ito 911e %seal Year Pang St9lender 30. BeudpIian 2017 2011 2019 2010 2021 2912 Unto Rsyenual Charms tar Sadcu 0006 510030,003 $10,539,111 S11,079,7311 $11,601,254 512,167,160 512,733,471 Iaerinkal Meetly." 62.100 59.2/10 35.300 51,300 41,000 40,600 Tuntfers(nen' 3.500 3,500 5,100 1.510 5,300 S,SOrt Taal Ocoee Revenuer S1%125,303 S10,673,911 511,140,01 111,659,034 512,220,760 311,711,971 Cal at0woOlun andntnMlensntet"' Coll ofOptmlionad Mulnitanea $5,957,491 3541111,275 24619,616 56.975017 57,106,112 37.617,233 Tomtits OJ-Genera Fuld Adudlds0alyaTwofer I" 1.611,100 1,6112.6111 1,737,0011 1,1431,8(0 1,012,100 7,003,916 103,00 Disposal of Capllal Auto 1 0 0 0 0 0 Told Cod orOpera6osand ardaenssra $7,394391 57,9001175 59,346,656 *0,0111.017 $,211,112 09,661.211 Ne4 Revenues Available forntbl Stoic*Caveraea 32,127,007 52,733,016 32,693.111 52,057,217 $3,010,030 53,127,750 Mnd netWte Ile gdreno nl•Solar Lien Whit Wale(not Saver/Went Ramos Hoo Solo 2016 SO S0 50 $It 30 So Water and Seller System MAW(as Revenue NoN Sevin 2012 97,1117 0 .6 11 0 0 Water SW Sewed System Ra(yyeal Reiman Nob Series 2013 117,616 0 0 0 Cl 0 Watt and Sewer S)slttnRdrtnw Rtaedbg Used,.Sean 2016 1,114.099 1,170.419 1.161.719 1,871.260 1.864469 1,164,769 Total Oehl Sanity atoll mann;•Seder lien Debi 71,760,712 $1,170,419 $1,061,719 01,871,269 51,164469 51,164,269 Mewl Real ekrvlte Cowmen Cnlndnllon" NH Amnon Ayalla010 Ru(kbM Stoles enema 33,527,007 $3,721,016 52,693,873 $2,851,217 13,002031 $3,121,130 Tool Bond Senite 0egab/r0110 $1,761,712 012170,419 11,164719 51,471,269 $1,161.469 $1,864,269 Od1rr ReguIred Deposita(Remo(nod end Keno&aad Replacement 0 0 0 0 0 0 Subtotal 11,768,712 $1,170,419 $1,164719 51,171,169 51,161,469 21,664.269 Corembto Win•Caltdaled 141.17% 145.811% 144.16% 102.42% 1600711. 167.77% Cavern'Rano•Required 115,00% 115.00% 11406% 115.60% 110.00% 113,00% NOORaltilmeuAfter Paying nadSarin%rgdremeM 5350,225 5152,011 2135,163 3900,046 61,133,369 S1,263,411 (I) Amounts include projected revenue front monthly water,reclaimed water,and wastewater rates eflhctive as of October 1,2015. (x) Revenues reflect anticipated Increase of revenues ibr the Reclaimed System due to:i)irrigation customers elms codes(iR50)and(1877) expected to become pall of the Reclaimed System during the Forecast Period;and ii)anticipated revenue from rehotis. (0) Amounts include revenues from the following System-wide average projected rale adjustments: Proloid%teal Year'lodin1 101040 30. 1017 2011 2019 2070 3021 2021 CPI tau At4wlmllns: Wek(System 1.003% 3.011% 3.04% 2.00% 3.00% .2.0036 . Retlelmed%%dr System 3.111% 1.00% 3.111% 3,00% 3.00% 3,0% Wm14wak1 Syamn 3.01% 3.101% 5.01% 3.00% 3.00% 3.00% (lay M,al'wm(Additions!t9 CPI Index MawxmmMe). Wale System 0.00% RDW% 1600% 0.00% 0.01% 6.00% RNlaimedWow Swan 13181% 000% 0.006 1102% 160% 003% Wourrakr System 9.01% 1100% 0.1146 000% 0.00% 46151% (4) Amounts include water,reclaimed wafer,and wastewater connection charges revenue,water and wastewater maintenance fee revenue,septa pumping fees,violations of ordinance revenue,and other miscellaneous revenues. (3) Amounts shown only reflect earnings from fluids and accounts established by the City that arc considered unrestricted (earnings not required to be retained in such fluids and accounts and am available as a component orNet Revenues).Earnings from Capital Facilities Charges and the Construction Fund established are considered restricted to such accounts and are not considered as a component of net available revenues for this analysis. (6) Amounts shown ore an annual transfer in Irons the City's General Fund for the usage of property by the City's Parks and Recreation Department. (7) The Cost ofOperution and Maintenance(br Fiscal Years 2016 and 2017 was derived tom the adjusted Fiscal Year 2016 and proposed Fiscal Year 2017 Operating Budget as prepared by City stuff.Amounts(br the remainder of the Forecast Period have been escalated born budgeted amounts(IS shown on Working Paper.Amounts shown do not Include depreciation and amortization expenses,which • 14 are non-cash expenses and aro not considered part of the Cost of Operation and Maintenance as defined in the Resolution.Payments in lieu of taxes are also excluded[fora the Cost of Opemtten anti Maintenance In accordance with the Resolution.In determining Cost ofOperatlons and Maintenance,thew shall not be taken into account:(a)any gain or loss resulting from either the extinguishment or refinancing orally Series of Bonds or other tong-term indebtedness;(b)loss from the sate,exchange or other disposition of capitol assets not made In the ordinary course of business;(c)any capital expenditures for renewal,replacement,expansion or acquisition of capital assets(including any deposits or reserves therefor),and(d)payments in lieu of taxes. t'► Administrative transfers are based on a cost allocation that includes among other costs;I)a portion of the costs for the utility counter;li)an allocation of salaries costs for some City engineers;Iii)an allocation of mowing costs incurred by the public works department;and iv)a transfer equal to 12.0%of dross Revenues for the reimbursement of other indirect costs incurred by the General Fund in support of the System. (9) 'the Coverage Ratio is the Rale Covenant as described in the Resolution. t10° Other Required Deposits include the required deposits Into(I)the Reserve Fund($0.00 for the Series 2016 Bonds,loss any portion thereof to be deposited hemp proceeds of Bonuls)together with any Reimbursements Obligations due and owing in such Bond Year,and(II)the Renewal,Replacement end Improvement Fund in such Bond Year. 15 • RULE 15c2-12 FILING COVER SHEET This cover sheet is sent with all submissions to the Municipal Securities Rulemaking Board (the Nationally Recognized Municipal Securities Information Repository) and any applicable State Information Depository pursuant to Securities and Exchange Commission (SEC) Rule I5c2-12 or any analogous state statute. Issuer Name: City of Ocoee,Florida Issuc(s): $ 39,415,000 Capital Improvement Revenue and Refunding Bonds,Series 2017 Filing Format X electronic paper;if available on the Internet,give URL: CUSIP Numbers to which the information filed relates(optional): X Nine-digit number(s)(see following page(s)): —Six-digit number if information filed relates to all securities of the issuer * * * Financial&Operating Data Disclosure Information X Annual Financial Report or CAFR X Financial Information&Operating Data _Other(describe) • X Fiscal Period Covered: PIE 2016 Monthly Quarterly X Annual Other: * * * I hereby represent that I am au horized by the issuer or its agent to distribute this information publicly: Signature: tV Name; Robert Briggs,Jr. Title:Finance Director Employer:City of Ocoee,Florida Voice Telephone Number: (407)554-7098 Email Address: rbriggs®ci,ocoee.#l.us DESCRIPTION OF ISSUES COVERED BY THIS REPORT Capital Improvement Revenue nud Refunding Bonds,Series 2017 Date Principal CUSIP 10/01/17 $ 675,000 675561BM5 10/01/18 670,000 675561BN3 10/01/19 685,000 675561BP8 10/01/20 710,000 67556113Q6 10/01/21 745,000 675561BK4 10/01/22 770,000 6755611352 10/01/23 810,000 675561BT0 10/01/24 845,000 675561BU7 10/01/25 895,000 675561BV5 10/01/26 940,000 675561BW3 10/01/27 980,000 675561BX1 10/01/28 1,035,000 675561BY9 10/01/29 1,080,000 67556113Z6 10/01/30 1,135,000 675561CA0 10/01/31 1,195,000 675561CB8 10/01/32 1,255,000 675561CC6 10/01/33 1,315,000 675561 CD4 10/01/34 1,385,000 675561CB2 10/01/35 1,450,000 675561CP9 10/01/36 1,525,000 675561C07 10/01/37 1,600,000 675561 CH5 10/01/41 7,110,000 675561CL6 10/01/42 1,950,000 675561CJ 1 10/01/46 8,655,000 675561C1C8 $ 39,415,000 • CONTINUING DISCLOSURE REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 CITY OF OCOEE, FLORIDA CAPITAL IMPROVEMENT REVENUE DEBT 414P FSCContinuingDisclosureServices A Division of Hilltop Securities. • FINANCIAL STATEMENTS The audited financial statements for the City for the fiscal year ended September 30, 2016 are being separately filed directly with the Nationally Recognized Municipal Securities Information Repository and any applicable State Information Depository, and are hereby incorporated by reference into this Annual Continuing Disclosure Report. SIGNATURE OF ISSUER The information set forth herein has been obtained from the City and other sources believed to be reliable, but such information is not guaranteed .as to accuracy or completeness and is not to be construed as a promise or guarantee. This Annual Continuing Disclosure Report may contain,in part, estimates and matters of opinion which are not Intended as statements of fact,and no representation is made as to the correctness of such estimates and opinions, or that they will be realized. The Information and expressions of opinion contained herein arc subject to change without notice,and the delivery of this Annual Continuing Disclosure Report will not, under any circumstances, create any implication that there has been no change in the affairs of the City or other matters described. CITY OF OCOEE,FLORIDA obert Briggs,Jr. Finance Director Approved for Submission: Date • CERTIFICATE OF SUBMISSION OF ANNUAL REPORT • Subject to the continuing disclosure requirements of SEC Rule 15c2-12, this Annual Continuing Disclosure Report for the City of Ocoee, Florida with respect to the issues listed on the report cover was submitted directly to the National Recognized Municipal Securities information Repository ("NRMSIR")listed below as well as to any applicable State Information Depository("SID"). NRMSIR Municipal Securities Rulemaking Board("MSRB") via the Electronic Municipal Market Access("EMMA")system PSC Continuing Disclosure Services,A Division of Hilltop Securities Inc. • Signed by: CITY OF OCOEE,FLORIDA 2017 CAPITAL IMPROVEMENT REVENUE DEBT REPORT Historical Half-Cent Sales Tax Revenue Distribution Fiscal Year Half-Cent Percentage Ended September 30 Sales Tax Revetxtes° Change 2007 $4,255,946 -- 2008 4,293,898 0.89% 2009 3,934,436 (8,37) 2010 3,956,965 0.57 2011 4,391,828 10.99 2012 4,598,067 4.70 2013 4,924,796 7.11 2014 5,314,028 7.90 2015 5,665,490 6.61 2016 6,084,185 7.39 (1) The amount of the Half-Cent Sales Tax Revenues received by the City during the fiscal year ended September 30, 2009 weakened as non-essential expenditures within the City wore curtailed.The retrenchment in consumer and business spending end confidence was caused by en economic decline,including without limitation the diminishing wealth effect from reel estate price depreciation,increasing unemployment and decreasing tourism.However,the City experienced increases in Half--Cent Sales Tax Revenues in the fiscal years thereafter and anticipates tinter increases in the fiscal year ended September 30,2017. Source:City of Ocoee,Florida Finance Department Historical of Communications Services Tax Revenues Distribution Fiscal Year Ended Communications Percentage September 30 Services Tax Revenues Change • 2007 $1,433,884 2008 1,464,248 2,1% 2009 1,333,799 (8.9) 2010 1,436,491 7.7 2011 1,345,646 (6.3) 2012 1,330,929 (1.1) 2013 1,312,238 (1.4) 2014 1,238,701 (5.7) 2015 1,181,276 (4.6) 2016 1,102,210 (6.7) Source:City of Ocoee,Florida Finance Department • Historical Public Service Tax Revenues Year Ended Public Service Percentage Change September 30 Tax Revenues 2007 $2,684,234 2008 2,712,753 0,9% 2009 2,725,162 0,2 2010 3,157,954 13,9 2011 3,084,358 (2.3) 2012 2,911,601 (5.6) 2013 3,003,838 3.2 2014 3,242,016 7.9 2015 3,213,389 (0.9) 2016 3,352,691 4,3 Sourec:City of Ocoee,Florida Finance Department Pro Forma Debt Service Coverage on the Bonds Fiscal Year Ended September 30 2012 2013 2014 2015 2016 Public Scrvice Tax $2,911,601 $3,003,838 $3,242,016 $3,213,389 $3,352,691 Communications Services Tax 1,330,929 1,312,238 1,238,701 1,181,276 1,102,210 Half-Ccn1 Sales Tax 4,598,067 4,924,796 5,314,028 5,665,490 6,084,185 Total Pledged Funds $8,840,597 $9,240,872 $9,794,745 $10,060,155 $10,539,086 Maximum Amual Debt Service $2,375,875 $2,375,875 $2,375,875 $2,375,875 $2,375,875 on the Ronde Pro Forma Debt Service Coverage 3.72x 3.89x 4.12x 4.23x 4.44x ill Represents maximum annual debt service on the Series 2017 Bonds. Source:City of Ocoee,Florida Finance Department Mayor Commissioners Rusty Johnson John Grogan, District 1 Rosemary Wilsen, District 2 City Manager Richard Firstner, District 3 Robert Frank Joel F.Keller, District 4 ocoee florida September 7,2017 ADDENDUM NO: TWO (2) CITY OF OCOEE RFP#17-005 AUDITING SERVICES This addendum consists of one (1) page and shall modify and become a part of the original RFP documents for auditing services. Respondents shall acknowledge receipt of this Addendum in the space provided on p.16 of the RFP documents. Failure to do so may subject the Respondent to disqualification. Answers to Questions received and/or amendments to the RFP documents are as follows: Ql. In the 2016 CAFR I didn't see a single audit section,was there a single audit for the year ended September 30,2016? A l. No. Q2. If not,does the City anticipate having a federal or State single audit for the year ended September 30, 2017? A2. Probably. Q3. Were there any significant changes in operations during the year ended September 30,2017? A3. No. Q4. Was there turnover in the Finance Department during the year ended September 30,2017? A4. Yes,Finance Director,Accountant,and Chief Accountant. Q5. What were the audit fees for the past three years? A5. See Addendum No. I posted on Demandstar. Q6. Were there any fees for non-audit services in the past three years? A6. No,see Addendum No. 1 posted on Demandstar. 401• 40.:To ert,CPPB Purchasing Agent cc:RFP Evaluation Committee 4 Mayor Commissioners Rusty Johnson John Grogan,District 1 City Manager \ Rosemary Wilsen,District 2 � Richard Firstner,District 3 Robert Frank Joel F. Keller, District 4 ocoee florida September 13, 2017 ADDENDUM NO: THREE(3) CITY OF OCOEE RFP#17-005 AUDITING SERVICES This addendum consists of one(1) page and shall modify and become a part of the original RFP documents for auditing services. Respondents should acknowledge receipt of this Addendum in the space provided on p.16 of the RFP documents; however, failure to do so will not subject the Respondent to disqualification. This Addendum is a result of the numerous detrimental effects of Hurricane Irma. Amendments to the RFP documents are as follows: THE RFP OPENING DATE HAS BEEN EXTENDED TO 2:00 P.M., LOCAL TIME, ON TUESDAY, SEPTEMBER 19,2017. o ce To cert,CPPB Purchasing Agent cc:RFP Evaluation Committee ORIGINAL ocoee RFP No. 17-005 PROPOSAL FOR AUDITING SERVICES TO THE CITY OF OCOEE, FLORIDA FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 2017, 2018, AND 2019 WITH OPTION FOR AN ADDITIONAL TWO YEARS RENEWAL September 19, 2017 Submitted by: MCDIRMIT /// DAVIS CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS 934 NORTH MAGNOLIA AVENUE SUITE 100 ORLANDO, FLORIDA 32803 (407) 615-8237 CONTACT: TAMMY CAMPBELL, C.P.A. tcampbell(cr�mcdirmitdavis.com www.mcdirmitdavis.com PROPOSAL FOR AUDITING SERVICES TO THE CITY OF OCOEE, FLORIDA TABLE OF CONTENTS Page A. Letter of Transmittal 1 B. Mandatory Criteria 3 C. Firm's Qualifications 4 D. Personnel Qualifications 12 E. Audit Approach 18 F. Price Proposal 22 G. Required Submittals i. Summary of Litigation 24 ii. Acknowledgment of Addenda 24 iii. RFP Conflict of Interest Disclosure Form 25 iv. Company Information/Signature Sheet 26 LETTER OF TRANSMITTAL '!%./// CD I R.MI T /1/ ti.A.V b CERTIFIED PUBLIC ACCOUNTANTS AND ADVISORS September 14, 2017 Joyce Tolbert Finance Department/Purchasing City of Ocoee, Florida 150 North Lakeshore Drive, 2nd Floor Ocoee, FL 34761 Thank you for the opportunity to submit our qualifications and experience to provide Auditing Services to the City of Ocoee, Florida for the fiscal years ending September 30, 2017, 2018, and 2019 with a renewal option for an additional two years, 2020 and 2021. We understand the work to be done and are committed to perform the work within the time period indicated in the RFP. We believe we are the best-qualified firm to perform the engagement for the following reasons: o Our firm has been auditing governmental entities in the Central Florida area for over 30 years. We presently audit eighteen (18) municipalities, approximately sixty (60) community development districts, and other special districts and have an excellent working knowledge of generally accepted accounting principles related to governmental entities. We assist in the preparation of the CAFR for most of these governmental entities. o We currently assist 11 of the 18 municipalities that we audit in receiving the GFOA "Certificate of Achievement for Excellence in Financial Reporting". Most of these municipalities have been receiving the "Certificate of Achievement"for between ten and thirty years. o Elden McDirmit started the company in 1984 and we have 28 employees in our centrally located Orlando office. Kelly Leary joined the governmental auditing staff in 1991 and Tamara (Tammy) Campbell has been with the governmental audit staff since 2004. We currently perform governmental audits in the following counties: Lake, Orange, Seminole, Volusia, Highlands, Hillsborough, Polk, Citrus, Putnam, and Indian River. We will always be accessible to the City of Ocoee and City staff. o We have strong information technology ability and will input the City's general ledger balances into our ProSystem fx Engagement software and perform a virtually "paperless" audit. We also use IDEA Data Analysis software, which enables us to obtain 100% of selected data and test "through the computer." The City's CAFR is linked to the general ledger; therefore, the likelihood of errors on the CAFR is reduced. o We also have significant experience with auditing various governmental accounting systems, including governments that use American Data Group (ADG)financial software. MCDIRMIT DAVIS&COMPANY,LLC 934 North Magnolia Avenue,Suite 100 Orlando,Florida 32803 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 1 o We believe in continuing client contact throughout the year, not just during the audit. We encourage ongoing client contact by not charging any fee for phone calls. o 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 and generally accepted auditing standards. o We are members of the American and Florida Institutes of Certified Public Accountants, the AICPA Government Audit Quality Center, and an Associate member of the Governmental Finance Officers Association. Our firm is active in governmental organizations throughout Central Florida and serves on governmental committees of the Florida Institute of CPA's. o 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. o We have a history of continuity of personnel assigned to the engagement. Our single office firm, centrally located in Orlando, and low personnel turnover assures uninterrupted services from our partners and staff. We have a staff of 28 people and 10 of those are governmental audit staff. o We do not discriminate on the basis of race, color, sex, religion, disability, national origin, ancestry, sexual orientation, familial status, age, or any other protected characteristic as established in the Equal Employment Opportunity law. All audit workpapers and reports will be retained at McDirmit Davis &Company's expense for a minimum of five years after release of the audit, unless the firm is notified in writing by the City of Ocoee of the need to extend the retention period. We understand that we are required to make working papers available, without charge, to the City upon request. Either Ms. Tammy Campbell, partner, or Ms. Kelly Leary, partner, is authorized to represent the firm and may be contacted at 934 N. Magnolia Avenue, Suite 100, Orlando, Florida 32803, phone (407) 615- 8237, or fax (407) 649-9339. We would consider it a privilege to serve as independent auditors for the City of Ocoee, Florida. The proposal prices shall remain in effect for 90 days from the proposal deadline. Sincerely, McI IRMIT DAVIS & COMPANY, LLC Tamara Camp`',' .P.A. 2 I MANDATORY CRITERIA McDIRMIT /// DAVIS Mandatory Criteria McDirmit Davis & Company is properly licensed to practice public accounting in the State of Florida. In addition, all supervisory personnel assigned to the audit of the City of Ocoee are CPAs and are properly licensed, as follows: Name Florida CPA License Number McDirmit, Davis& Company AD0021084 Kelly D. Leary AC0011986 Tamara Campbell AC39760 Michelle Sorbello AC47483 Matthew Lee AC46510 3 FIRM'S QUALIFICATIONS • MCDIRMIT /// DAVIS Firm's Qualifications Description of McDirmit Davis &Company Elden McDirmit started the company in 1984 and has always had the one centrally located office in Orlando. The Company has grown to 28 people, of which 10 perform audits of governmental entities. We are a full-service firm that provides accounting, auditing, and tax services to our clients. We are recognized as a CPA firm that is excellent at meeting the needs of our clients and helping them achieve their goals.All of our professional staff are college graduates and most are CPAs. Some of the accounting and audit services that we provide are: • Audits, reviews or compilations of financial statements • Employee benefit plan audits • Compliance audits • Internal control review and evaluation • Accounting services related to the issuance of revenue and general obligation bonds Proposed Audit Team • Tammy Campbell, C.P.A., engagement partner, will be responsible for all services that are provided to the City. Tammy has a good understanding of municipalities and grant compliance testing, and will be in the field for at least two days of interim testing and two days of the audit fieldwork. Tammy will be the City's primary contact person, and will oversee all aspects of the audit, including review of the CAFR. • Kelly Leary, C.P.A., review partner, will be responsible for technical guidance and second partner review. In addition, over the past 20 years, Kelly has been involved in providing accounting services related to the issuance of revenue and general obligation bonds for many cities. • Michelle Sorbello, C.P.A., audit manager, will be in the field to supervise fieldwork and preparation of CAFR. • Matt Lee, C.P.A., audit supervisor, will be responsible for compliance testing, including Federal and State Single Audits. • Gina Kleindorfer, IT Specialist, will be responsible for technology related testing. The proposed audit team specializes in governmental audits and work together on the majority of the firm's governmental audits. The two "key" members of the audit team are Tammy Campbell and Michelle Sorbello. In addition to the supervisory staff listed above, the firm may also use one to two staff members to assist in testing who will be directly supervised by the proposed audit team. As mentioned earlier, our audit department includes ten (10) individuals who specialize in governmental accounting and auditing. During the past five (5) years that McDirmit Davis & Company has performed the audit of the City of Ocoee, the engagement partner was Kelly Leary, however going forward it will be Tammy Campbell. 4 MCDIRMIT /// DAVIS Firm Qualifications (Continued) Staff Training and Governmental Commitment McDirmit Davis & Company holds annual CPE training programs for all governmental audit team members. These annual workshops are designed to update all team members on new auditing and accounting standards, as well as improve audit efficiencies. Annually, key audit team members attend the FGFOA conference to obtain additional training on key governmental topics as they directly relate to governmental entities within Florida. Additionally, all governmental staff are supervised while in the field by the governmental team supervisory staff. McDirmit Davis & Company has shown a commitment to governmental engagements having audited various municipalities since the inception of the firm in 1985. Over half of the audit department specializes in governmental audits. In addition to the 18 municipalities the Firm currently audits, the firm audits approximately 60 community development districts annually. The governmental supervisory staff obtains the majority of their required CPE hours on topics that directly relate to governmental accounting and auditing. Quality Control McDirmit Davis &Company has written procedures that outline our quality control system with regard to the following six elements of quality control: • Leadership Responsibilities for Quality • Relevant Ethical Requirements • Acceptance and Continuance of Clients and Engagements • Human Resources • Engagement Performance • Monitoring The above procedures provide our Firm with assurance that its personnel comply with the applicable professional standards and the Firm's standards of quality. Our Firm policy is that all compilation, review, and audit engagements be properly planned, performed, supervised, reviewed, and documented in accordance with the requirements of professional standards, including AICPA auditing standards, and both FASB and GASB standards. We provide staff training to governmental audit personnel to insure that they have a good understanding of Government Auditing Standards and the Rules of the Auditor General. External Quality Control Review(Peer Review) Our Firm understands the importance of developing a formal quality control program, and therefore have been a member of the Private Companies Practice Section of the American Institute of Certified Public Accountants since 1985. We are also members of the Governmental Audit Quality Center of the American Institute of Certified Public Accountants. 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 by an independent CPA firm which is performed every three years. Our firm has had eight 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. In addition, we received no letter of comments. 5 MCDIRMIT /// DAVIS Firm Qualifications (Continued) External Quality Control Review(Peer Review) (Continued) On our most recent peer review which was performed in September, 2014, we received a peer review rating of"pass", which is the highest rating that a firm can receive under the revised peer review standards. This peer review included a review of two governmental engagements, and it should be noted that there were no findings as a result of this peer review. Our next peer review is scheduled to begin October 5, 2017. We have never been subject to any litigation or disciplinary actions by a client, the State or any professional organization for substandard field work. We have never withdrawn from an engagement prior to the agreed expiration date. Other Services Provided 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. Below is a listing of the type of other services that we have provided to governmental clients: 1. Assistance in preparation of Comprehensive Annual Financial Reports for recognition by the Government Finance Officers Certificate of Achievement Program. 2. Internal audit services. 3. Issuance of Comfort Letters and Consent Letters in conjunction with the issuance of tax-exempt bonds. 4. Assistance with early implementation of new GASB Statements. 5. Detailed internal control studies and evaluations of accounting systems. Additionally, our governmental staff is available throughout the year for technical consulting including the discussion of how new accounting standards will affect the City. Our Firm believes in continuous communications throughout the year to discuss various issues affecting the City including new debt issues, implementation of new accounting standards, changes to internal control structure and major capital development plans. We believe that open communication results in an effective and efficient audit. State and Other Affiliations McDirmit Davis &Company is a member of the Florida Institute of Certified Public Accountant(FICPA), the FICPA State and Local Government Section, and Florida Government Finance Officers Association (FGFOA). We are also members of the AICPA Government Audit Quality Center, which highlights our commitment to the governmental sector. Kelly Leary also has served on the FICPA State and Local Government Committee. Tammy Campbell currently serves as a review team member for the GFOA's Certificate of Achievement program. 6 MCDIRMIT /1/ DAVIS Firm Qualifications (Continued) Information Technology Our firm has one dedicated Information Technology specialist who has several years of experience in setting up and administering computer systems and networks of all sizes. In addition, all 10 governmental audit personnel are experienced with various governmental software programs. We utilize automated, paperless auditing software which stores all trial balances and audit workpapers electronically. We also use IDEA Data Analysis Software, which enables us to obtain 100% of selected data and test "through your computer system." One of the services we provide our clients is CLIENT PORTAL. This is a convenient online storage space in which files can be effortlessly uploaded, downloaded, stored and shared in a safe and secure environment. We understand that every business has different requirements when it comes to IT systems. To help you find the best IT system to suit your needs, our IT Specialist is available to evaluate your network and provide a comprehensive solution. Insurance We will provide Certificates of Insurance of our Professional Liability, as well as Commercial General Liability and Workers Compensation and Employers Liability insurance, if we are awarded the Audit Contract. 7 MC'DIRIVIIT /// DAVIS Firm Qualifications Listing of Governmental Audits Scope of Principal Client Contact Work Years Ms. Lacy Smith-Castillo, • Annual Financial & Compliance 1998 to Asst. Fin. Dir. Audit(Single Audit) and preparation Present City of Clermont, Florida of CAFR 685 W. Montrose Street Clermont, FL 34711 • Received GFOA's "Certificate of (352) 241-7369 Achievement" Ismithaclermontfl.orq Ms. Jackie Soya, City Mgr. • Annual Financial & Compliance 1997 to City of Lake Mary, Florida Audit and preparation of CAFR Present 100 N. Country Club Road Lake Mary, FL 32749 • Received GFOA's "Certificate of (407) 585-1409 Achievement" isova(7lakemaryfl.com Mr. Shawn Boyle, Fin. Dir. • Annual Financial & Compliance 2000 to City of Winter Springs, Florida Audit(Single Audit) and preparation Present 1126 E. State Road 434 of CAFR Winter Springs, FL 32708 (407) 327-5960 • Received GFOA's "Certificate of sboyle(c�winterspringsfl.org Achievement" Mr. Jerry Boop, Fin. Dir. • Annual Financial &Compliance 2006 to City of Oviedo, Florida Audit(Single Audit) and preparation Present 400 Alexandria Blvd. of CAFR Oviedo, FL 32765 (407) 971-5544 • Received GFOA's "Certificate of jboopt citvofoviedo.net Achievement" Mr. Robert Briggs, Fin. Dir. • Annual Financial & Compliance 1985 to City of Ocoee, Florida Audit (Single Audit)and preparation Present 150 Lakeshore Drive of CAFR Ocoee, FL 34761 (407) 905-3100 • Received GFOA's"Certificate of rbrici is(a7ci.ocoee.fl.us Achievement" 8 MCD.IRMIT /1/ Davis Firm Qualifications (Continued) Listing of Governmental Audits (Continued) Scope of Principal Client Contact Work Years Ms. Lori Houghton, Fin. Dir. • Annual Financial & Compliance 1988 to City of Tavares, Florida Audit (Single Audit) and preparation Present P.O. Box 1068 of CAFR Tavares, FL 32778-1068 (352) 742-6212 • Received GFOA's "Certificate of Ihoughton(a,tavares.orq Achievement" Ms. Carol Rogers, Fin. Dir. • Annual Financial & Compliance 2010 to City of Umatilla, Florida Audit(Single Audit) and preparation Present 1 South Central Avenue of CAFR Umatilla, FL 32784 (352) 669-8313 • Received GFOA's "Certificate crogers(c�umatillafl.orq Of Achievement" Mr. Jerry Gray, Finance • Annual Financial & Compliance 2009 to Director Audit (Single Audit) Present City of Maitland, Florida 1776 Independence Lane • Received GFOA's "Certificate of Maitland, FL 32751 Achievement" iqrav@itsmvmaitland.com Ms. Lisa Snead, Finance • Annual Financial & Compliance 1991 to Director Audit(Single Audit) and preparation 1993 City of Longwood, Florida of CAFR and 175 W. Warren Avenue 1997 to Longwood, FL 32750 • Received GFOA's "Certificate of Present (407) 260-3475 Achievement" Isnead(cr�longwoodfl.orq 9 MCDIRMIT /// DAVIS Firm Qualifications (Continued) Listing of Governmental Audits (Continued) Scope of Principal Client Contact Work Years Ms. Tracey Richardson, • Annual Financial & Compliance 1999 to Finance Manager Audit and preparation of CAFR Present City of Belle Isle, Florida 1600 Nela Avenue • Received GFOA's Belle Isle, FL 32809 Certificate of Achievement (407) 851-7730 trichardsonna belleislefl.gov Cheryl Chiodo, Fin. Dir. • Annual Financial & Compliance 2014 to City if Inverness, Florida Audit (Single Audit) and Preparation Present 212 W. Main Street of Financials Inverness, Florida 34450 (352) 726-5016 cchiodo(a,Inverness FL.gov Mr. Robert Smith, Town Mgr. • Annual Financial & Compliance 2000 to Town of Windermere Audit and Preparation of Financials Present 614 Main Street Windermere, FL 34786 (407)876-2563 rsmith(c�town.windermere.fl.us Ms. Dolly Miller, Fin. Dir. • Annual Financial & Compliance 2000 to City of Mascotte Audit and Preparation of Financials Present 100 East Myers Blvd. Mascotte, FL 34753 (352)429-3341 dolly.millera.citvofmascotte.corn Christine Davis, Fin. Dir. • Annual Financial & Compliance 2014 to City of Orange City, Florida Audit and Preparation of CAFR Present 205 E. Graves Ave. Orange City, FL 32763 • Received FGOA's Certificate of (386)775-5432 Achievement cdavis(a ourorangecity.com 10 McDIRMIT /// DAVIS Firm Qualifications (Continued) Listing of Governmental Audits (Continued) Scope of Principal Client Contact Work Years Mr. Rodney Lucas, • Annual Financial &Compliance 2015 to Interim City Manager Audit and Preparation of Financials Present City of Groveland, Florida 156 S. Lake Avenue Groveland, FL 34736 (352)429-2141, Ext. 250 rodney.lucasCa groveland- fl.gov Ms. Jeannine Racine, • Annual Financial &Compliance 2016 to Fin. Dir. Audit and Preparation of Financials Present City if Fruitland Park, Florida 506 W. Berckman Street Fruitland Park, Florida 34731 (352) 360-6545 jracineAfruitlandpark.orq Ms. Charlotte Gentile, • Annual Financial &Compliance 2016 to Finance Mgr. Audit and Preparation of Financials Present City of Minneola, Florida 800 North U.S. Highway 27 Minneola, FL 34715 (352) 394-3598, Ext. 2300 cgentile(a�minneola.us Mr. Joe Wynkoop, Mayor • Annual Financial &Compliance 2016 to Town of Montverde, Florida Audit and Preparation of Financials Present 17404 6th Street Montverde, FL 34756 (407) 469-2681 mayor(a)mymontverde.com 11 PERSONNEL QUALIFICATIONS MCDIIZMIT /1/ DAVIS Personnel Qualifications All professional staff at McDirmit Davis and Company are required to take 40 hours per year of continuing professional education, even if they have not yet passed the CPA exam. All of our governmental audit employees meet the education and independence requirements of Government Auditing Standards and have received adequate continuing professional education within the preceding three years. All individuals working on governmental audits have completed at least 24 hours of CPE every two years that directly relates to government auditing, the governmental environment, or the specific or unique environment in which the audited entity operates. In addition, all supervisory staff who charge at least 20% of their time annually to governmental audits have obtained 80 hours of CPE every two years that enhances their professional proficiency to perform audits under Government Auditing Standards. We believe in the continuity of the audit team over the term of this engagement, and the firm makes every effort to keep the same supervisory personnel on the audit each year. Tammy Campbell will serve as the primary audit partner throughout the term of this engagement, and Michelle Sorbello will serve as audit manager throughout the term of this engagement. If anyone on the audit team listed is promoted or leaves the firm, we understand that the City of Ocoee has the right to approve or reject replacements. Resumes of the audit team are on pages 13 through 17. As described on the resumes, three of the individuals on the audit team are qualified to perform both Federal and Florida Single Audits. 12 MCDI1 MIT /// DAVIS Resume - Kelly D. Leary, CPA mgr c ° Review Partner Education, Certifications, and Licenses 4 • B.S. Degree in Accounting, University of Hawaii • CPA, Certified Public Accountant - Florida, 1983 • CPA, Certified Public Accountant - California, 1980 Affiliations and Community Involvement • American Institute of Certified Public Accountants (AICPA) • Florida Institute of Certified Public Accountants (FICPA) • Florida Government Finance Officers Association (FGFOA) • FICPA State and Local Government Committee • Board of Directors of Fairwinds Credit Union Continuing Professional Education Kelly has completed over 120 hours of Continuing Professional Education (CPE) in the area of governmental accounting and auditing within the past three years and meets the requirements of Governmental Auditing Standards (the "Yellow Book"). CPE includes classes on Single Audits, the Yellow Book, and changes in governmental accounting principles. Kelly assisted all 15 cities that McDirmit Davis and Company audited in 2015 with implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions and assisted 18 cities in 2016 with GASBS No. 72 on investments. Experience • Kelly has 28 years of governmental accounting and auditing experience and has been with McDirmit Davis and Company since 1991. She has significant experience in the audits of governmental and not-for-profit entities, including those subject to Federal and Florida Single Audit requirements. • She has written articles for the magazine Florida CPA Today relating to governmental pension plans and Single Audits. • For many years she has been on a subcommittee that has revised Compliance Auditing in Florida, an FICPA Practice Aid. • She has assisted municipalities with the issuance of comfort letter and consent letters in conjunction with the issuance of tax-exempt bonds. Governmental Audit Experience (Past 5 years) • City of Winter Springs • City of Groveland • City of Oviedo • City of Tavares • City of Umatilla • City of Belle Isle • City of Ocoee • City of Clermont • City of Longwood • City of Mascotte • City of Maitland • Town of Windermere • City of Lake Mary • City of Inverness • City of Orange City • City of Fruitland Park I 13 MCUIRMIT /1/ DAVIS Resume - Tammy Campbell, CPA Engagement Partner Education, Certifications, and Licenses • B.S. Degree in Accounting, University of Central Florida • Masters in Taxation, University of Central Florida • CPA, Certified Public Accountant— Florida, 2007 Affiliations and Community Involvement • American Institute of Certified Public Accountants (AICPA) • Florida Institute of Certified Public Accountants (FICPA) • Florida Government Finance Officers Association (FGFOA) • Review Team Member for the GFOA Certificate of Achievement Program Continuing Professional Education Tammy has completed over 120 hours of Continuing Professional Education (CPE) in the area of governmental accounting and auditing within the past three years and meets the requirements of Governmental Auditing Standards (the "Yellow Book'). CPE included classes on Single Audits, the Yellow Book, and changes in governmental accounting principles, such as GASBS 67 and 68 on pension plans and GASBS 72 on investments. Tammy assisted all 15 cities that McDirmit Davis and Company audited in 2015 with implementation of GASB Statement No. 68 on pensions. Experience • Tammy has 13 years of governmental accounting and auditing experience, including municipalities and other governmental entities. • Her experience has included planning, fieldwork, and preparation of comprehensive annual financial reports for most of our governmental audit engagements. • Tammy has worked with all 18 municipalities in the CAFR preparation process, including assisting one city in obtaining the GFOA Certificate of Achievement for the first time. • As a review team member for the GFOA Certificate of Achievement program, Tammy reviews and evaluates financial reports submitted by governmental entities to determine whether the financial reports meet the requirements to receive the GFOA's prestigious award. • Tammy also serves as the Firm's primary review partner for the over 60 Community Development District audits the firm performs. • Her experience also includes performing and reviewing daily local government transactions such as bank reconciliations, accounts payable processing, budget review, processing red light camera revenues, and preparation for the annual audit. Governmental Audit Experience (Past 5 years) • City of Umatilla • Town of Windermere • City of Clermont • City of Longwood • City of Oviedo • City of Belle Isle • City of Lake Mary • City of Winter Springs • City of Ocoee • City of Maitland • City of Tavares • City of Mascotte • City of Orange City • City of Inverness • City of Minneola • City of Fruitland Park 14 MCDIRM r r /// DAVIS Resume - Michelle Sorbello, CPA Audit Manager Education, Certifications, and Licenses • B.S. Degree in Accounting, University of Central Florida • Masters in Accounting, University of Central Florida • CPA, Certified Public Accountant - Florida Affiliations and Community Involvement • American Institute of Certified Public Accountants (AICPA) • Florida Institute of Certified Public Accountants (FICPA) • Florida Government Finance Officers Association (FGFOA) Continuing Professional Education Michelle has completed over 80 hours of Continuing Professional Education (CPE) in the area of governmental accounting and auditing within the past two years and meets the requirements of Governmental Auditing Standards. Experience • Michelle has 5 years of governmental accounting and auditing experience. • She has significant experience in the audits of governmental and not-for-profit entities, including those subject to Federal and Florida Single Audit requirements. • Her experience has included planning, fieldwork, and preparation of comprehensive annual financial reports for governmental audit engagements. Governmental Audit Experience (Past 5 years) • City of Ocoee • City of Winter Springs • City of Mascotte • City of Oviedo • City of Lake Mary • City of Longwood • City of Inverness • City of Fruitland Park 15 McDIRMIT /1/ DAVIS Resume - Matthew Lee, CPA Audit Supervisor Education, Certifications,and Licenses • Master of Science in Accounting, University of Central Florida • Master of Public Administration, University of Central Florida • B.S. in Public Administration, University of Central Florida • CPA, Certified Public Accountant- Florida Affiliations and Community Involvement • American Institute of Certified Public Accountants (AICPA) • Florida Institute of Certified Public Accountants (FICPA) • Florida Government Finance Officers Association (FGFOA) Continuing Professional Education Matthew has completed over 120 hours of Continuing Professional Education (CPE) in the area of governmental accounting and auditing within the past three years and meets the requirements of Governmental Auditing Standards. Experience • Matthew has 5 years of governmental accounting and auditing experience. • He has significant experience in the audits of governmental and not-for-profit entities, including those subject to Federal and Florida Single Audit requirements. • His experience has included planning, fieldwork, and preparation of comprehensive annual financial reports for governmental audit engagements. • Matthew also has significant experience in performing both state and federal single audits. Governmental Audit Experience (Past 3 years) • City of Ocoee • Town of Windermere • City of Clermont • City of Longwood • City of Oviedo • City of Belle Isle • City of Winter Springs • City of Tavares • Sun 'N Lake Improvement • City of Umatilla District • Town of Montverde • City of Maitland • City of Groveland 16 MCDIRMIT /Y/ DAVIS Resume - Gina Kleindorfer Information Technology Specialist Education, Certifications, and Licenses • Associates Degree, Indiana University Experience • Gina is an IT Professional with over 25 years' experience, directing a broad range of corporate IT security initiatives while participating in planning, analyzing, and implementing solutions in support of business objectives. She has provided comprehensive secure network design, system analysis and full lifecycle project management. Gina has hands-on experience leading all stages of system development, including design, architecture, testing and support. Her outstanding project and program leadership allows her to be able to coordinate and direct all phases of projects. Key Skills • Network&System Security • Risk Management • Vulnerability Assessments • Authentication &Access Control • System Monitoring • System Integration Planning • Multitier Network Architectures • Implementation Planning • End-user Training • Staff Leadership/Mentoring • System Administration • Application Management • User Requirements Analysis • Help Design/Technical Support Technology Summary Security Technologies: Anti-Virus Tools; Disaster Recovery, Network Administration; PCI security standards Systems: Windows (all) Networking: LANs, WANs, VPNs, Routers, Firewalls, TCP/IP 17 AUDIT APPROACH ViCDIRMIT /1/ DAVIS Audit Approach McDirmit Davis & Company understands the scope of services for this audit as described in the RFP: (A) Financial Audit, (B) Single Audit, and (C) preparation of the Comprehensive Annual Financial Report (CAFR). This audit shall comply with the standards detailed in the RFP, including Generally Accepted Auditing Standards, standards for financial audits set forth in the U.S. General Accounting Office's Government Auditing Standards, provisions of the Single Audit Act, the provisions of U.S. Office of Management and Budget (OMB) Uniform Guidance, and the State of Florida, Rules of the Auditor General. We also understand the City's goal is to continue receiving the GFOA Certificate of Achievement for its CAFR. We will make sure that the CAFR we prepare for the City will meet the requirements of the Certificate of Achievement program. We also understand the desire for a meaningful management letter to provide suggestions for improvements to the various processes of the City from an internal control perspective. We will issue all reports listed in the RFP. Tentative Schedule for Performing Audit We understand how important it is for timeliness in conducting the audit in order to submit audited financial statements to the GFOA by March 31. The proposed work plan below includes performing the audit of the financial statements, as well as preparation of the Draft CAFR. It does not include hours for a Single Audit since a fee for a Single Audit is paid by the City only if the City is required to have a Single Audit. The Single Audit Fee (if required) is detailed on the Price Proposal Form. Completion Estimated Audit Phase Dates Hours Planning and interim audit work: October 31 Partner 16 Manager 16 Supervisor 16 Staff 24 Information technology 8 Year End Fieldwork: February 28 Partner 16 Manager 16 Supervisor 24 Staff 104 Report and CAFR Draft Preparation: March 15 Partner 8 Manager 16 Supervisor 24 18 MCDIRMIT /// DAVIS Audit Approach (Continued) As indicated above, the engagement partner, Tammy Campbell, will be in the field with audit staff for a minimum of two days for interim testing and a minimum of two days for substantive testing. In our firm, partners are always very involved in the day to day audit procedures. We have the reputation of maintaining both partners and the audit manager on City audits every year which means they are available to answer audit staff and City finance department questions during fieldwork. Our audit approach is to document the flow of information through the information systems and accounting records of the City by interviewing City employees and then testing to determine that our understanding is correct. Most of our testing will be based upon random sampling with some stratification of the various populations to provide focus for our testing. We have summarized below our audit approach related to the various segments of the audit. Our goal is to perform the audit with as little interference with your daily operations as possible. Our audit will be segmented into the following phases: Phase 1: Audit Planning Phase 2: Evaluation and Testing of Internal Controls and Compliance Phase 3: Substantive Testing Phase 4: Reporting Phase 1: Audit Planning Preliminary planning includes deciding on an overall strategy for the audit, obtaining an understanding of the entity and its environment, including its internal control, making an initial assessment of audit risk and materiality, and deciding on the overall timing of the engagement. We will meet with the City's Finance Director and staff to identify documents that we need to assemble our "permanent file," which consists of copies of organizational charts, City manuals, bond documents, budgets, and information related to financial and other management systems. We also obtain additional background information such as laws, regulations .- . and other factors affecting our audit. 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 `�� 11 computer environment in order to comply with the requirements of SAS 94 The Effect of Information Technology on the Auditor's Consideration of oSFr U Internal Control in a Financial Statement Audit. Our IT Specialist will be involved in this part of the audit planning. We will then design our preliminary audit plan and discuss what schedules we will need from the City in order to test internal controls and compliance with laws and regulations. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. During the planning phase we will also discuss any new GASB standards to be implemented during the year, and the overall implementation plan. Our audit will also be conducted in accordance with the Rules of the Florida Auditor General, Chapter 10.550, Local Government Entity Audits, and if a Federal or Florida Single Audit is required, the audit will be done in accordance with OMB Uniform Guidance and Section 215.97, Florida Statutes. 19 MCDIRIV11T /// DAVIS Phase 2: Evaluation and Testing of Internal Controls and Compliance During Phase 2, we will evaluate your internal control policies and procedures to determine if they are functioning properly inw---. 106110, significant transaction classes. To gain an understanding of the • procedures in place, and current internal control structure, we typically conduct interviews with staff and management involved in the specific transaction class to be tested. We then perform tests of these controls to 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. We use audit sampling procedures to test a representative sample of each transaction class. Sample sizes are determined based upon our assessment of control risk and may be judgmental, random, or stratified, depending on the attributes of the population being tested. We will select samples from the significant transaction classes and trace from original documents through the computer system to the general ledger through the use of IDEA Data Analysis Software. 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. Our control testing includes obtaining an understanding of the computer software used by the City, and tracing sample selections through the system to determine that the desired outcomes are being achieved. Our testing of Information Technology includes inquiries of appropriate personnel regarding data backups and access to City files. We will request schedules and other information in electronic form, either in a spreadsheet or direct download from the City's computer system. We expect to use the City's technology to the maximum extent possible. We are completely paperless and store all audit workpapers electronically within our audit software. We also have an electronic library at our fingertips with all AICPA and GASB pronouncements, various audit guides, and other research material needed to do Single Audits. We also have other electronic audit tools such as Florida Statutes, Florida Auditor General Rules, and IDEA Data Analysis Software. In addition to performing tests of internal controls and compliance, we also use analytical procedures as part of planning to help us determine what audit procedures are required. Our expectations of the results of this analytical review are compared to actual results, as required by generally accepted auditing standards. After controls have been documented, evaluated and tested, and analytical procedures performed, we will finalize the City's audit plan. Audit programs will be tailored to fit the specifics of the City's risks, material account balances and internal controls. Our testing of internal controls will be done by October 31 to help determine the extent of year end audit procedures required. If internal control deficiencies are identified during interim fieldwork, they are brought to management's attention either verbally or in the form of a preliminary management letter, depending on the nature of the issue discovered. This allows management to address the issue as soon as possible. We will work with Finance to develop a detailed audit plan by October 31 each year. 20 MCDIRMIT /// DAVIS Phase 3: Substantive Testing Our year-end fieldwork will focus on verifying balances in accounts. For ton example, we will confirm cash balances, as well as debt balances with .°" 01* - financial institutions. In addition to obtaining audit confirmations, ' representation letters and attorney letters, we will perform tests on account =r ` balances using analytical procedures, recalculation and verification. Our firm , ; uses ProSystem fx Engagement electronic audit software which may allow 3� - 5 0 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 t . ,,a w+tail the audit. We compare analytical results to our expectation of what the r results should be in order to determine if additional audit procedures are !\ t IIF- required. Typical analytical procedures include revenue and expense �"- variances with previous years actual and current year budget amounts. In addition, we calculate other ratios for enterprise funds such as turnover and number of days in accounts receivable. 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. Progress reports with the Finance Director and City Manager will be done verbally throughout the audit. We do not anticipate any potential audit problems but our approach to resolving problems encountered is to discuss with the Finance Director to make sure our understanding is correct. Our process to produce a meaningful "management letter" is to review results of testing of controls and year-end field work and draft recommendations for improvements. Phase 4: Reporting The audit work is reviewed in the field by the engagement partner or manager throughout the engagement to ensure that issues are addressed quickly and that City staff is aware of potential problems as soon as possible. Once the engagement partner review is complete, a second review of the financial statements is performed by the review partner. This second review is required as part of McDirmit Davis and Company's internal system of quality control. Before we leave the City, we have an exit conference to discuss the results of the audit and to discuss any recommendations that we may have for improvement in the City's internal controls. We will also discuss any new GASBs that will affect new accounting treatment issues in the next year. We will consult with the Finance Director about early implementation of new accounting standards, and provide guidance and our opinion on early implementation, however, the final decision to implement remains with the City. In cases where the City may propose an alternative approach to the firm's policy on specific GAAP implementation, we will review the information provided by City personnel supporting their position, and seek to come to a mutually agreed upon conclusion regarding GAAP interpretation. In cases of differing opinions, the firm believes in researching the GAAP matter to determine appropriate interpretations of GAAP, and ensuring that the final selection of the accounting treatment is consistent with our understanding of the standards, and would not be considered a deviation from GAAP. We will prepare the Draft of the CAFR for review by the Finance Department by March 15, and after the City reviews the draft CAFR, we will deliver final audit reports and CAFR by March 25. Throughout the audit process, we will seek to identify areas of improvement for the City, and communicate to management in the management letter. 21 I PRICE PROPOSAL PRICE PROPOSAL FORM RFP#17-005 AUDITING SERVICES COMPANY NAME McDirmit Davis & Company A. ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED IN RFP#17-005 FOR FISCAL YEARS ENDING 2017, 2018, 2019: 2017 $ 32,480 . 00 2018 $ 32,480 . 00 2019 $ 32.480 . 00 TOTAL $ 97,440 . 00 B. ANNUAL PRICE PROPOSAL FOR SINGLE AUDIT FEE:(IF REQUIRED) 2017 $ 4,,nn . no 2018 $ 4.500 . nn 2019 $ 4,5nn . nn TOTAL $ 13.500 . 00 22 C. ANNUAL PRICE PROPOSAL FOR ASSISTANCE AND/OR REVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT(CAFR), IF REQUIRED: 2017 $ 7,680 • 00 2018 $ 7.680 • nn 2019 $ 7.680 . 00 TOTAL $ 23,040 . 00 (A renewal option for an additional two years may be negotiated for services provided in items A through C). Date McDirmit Davis & Company Company Name AC39760 License Number Tamara Campbell, Partner Au orized Officer (print) Auth. • '= • .ture 23 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) NONE 13. ACKNOWLEDGMENT OF ADDENDA: Proposer acknowledges receipt of the following addenda: No. 1 Dated 08/30/2017 No. 2 Dated 09/07/2017 No. 3 Dated 09/13/2017 VONIMINOMONSIMINatlffir u i ng ervices 16 24 (.)COee florid() EXHIBIT"G" RFP CONFLICT OF INTEREST DISCLOSURE FORM The award of this contract is subject to the provisions of Chapter 112, Florida Statutes. All Proposers must disclose within their Proposal: the name of any City of Ocoee employee, Mayor or City Commissioner, other City Official, or City Consultants, who owns assets or capital stock, directly or indirectly, in the Proposer's firm or any of its branches, or would directly or indirectly benefit by the profits or emoluments of this proposal. (Indirect ownership or benefit applies to any members of his or her immediate family.) Proposer 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, Proposer agrees to immediately notify the City in writing. The purpose of this disclosure form is to give the City the information needed to identify potential conflicts of interest for the City Commission, Evaluation Committee members, and other key City employees and consultants involved in the award of this contract. According to Chapter 112, Florida Statutes, the term "conflict of interest" "means a situation in which regard for a private interest tends to lead to disregard of a public duty or interest", and refers to situations in which financial or other personal considerations may adversely affect, or have the appearance of adversely affecting, an employee's professional judgment in exercising any City duty or responsibility in administration,management, instruction,research,or other professional activities. Please check one of the following statements and attach additional documentation if necessary: X _ To the best of our knowledge,the undersigned firm has no potential conflict of interest for this Proposal. The undersigned firm,by attachment to this form,submits information which may be a potential conflict of interest for this Proposal. Acknowledged by: McDirmit Davis & Company Firm Nr me Signatur Tamara Campbell, Partner Name and Title(Print or Type) 09/14/2017 Date 25 RFP#17-005 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 RIP INSTRUCTIONS AND THAT THE PRICES REFLECTED ON THE"SCOPE OF SERVICES/PRICE PROPOSAL FORM"ARE ACCURATE AND WITHOUT COLLUSION. McDirmit Davis & Company (407) 615-8237 COMPANY NAME TELEPHONE(INCLUDE AREA CODE) (407) 649-9339 _ FAX (INCLUDE AREA CODE) tcampidell@mcdirmitdavis.com E-MAIL ADDRESS 4 1114 IF REMITTANCE ADDRESS IS DIFFERENT AUT HORIZED S''""r'IPIRE(manual) FROM PURCHASE ORDER ADDRESS, PLEASE INDICATE BELOW: Tamara Campbell, Partner NAME/TITLE(PLEASE PRINT) 934 N. Magnolia Ave., Suite 100 STREET ADDRESS Orlando FL 37803 CITY STATE ZIP FEDERAL IDH 26-0004117 Individual X Corporation Partnership Other(Specify)_ Sworn to and subscribed before nye this 14 day of September ,2017 Personally Known X or Produced Identification Notary Publi Ai tate of 1-7-1 4,C?. (Type of Identification) County of a ure of Notary Public ..fir "••` CARLOS ALFREDO SALDANA _ d�� A�fY� Sa\c\a I• • MY COMMISSION#tFF175556 v\� , Printed,typed or stamped 'sNai, oR� EXPIRES November 11,2018 (407388.0153 FloridallotaryService.com Commissioned name of Notary Public 26 ri • Gray & Company Certified Public Accountants -,,, d t..' �_ .,. ` mo �� ti ` 3� r Tallahassee‘''',1.', w. i*'' r �� ,,, ,)' t �9 ti 1170 , ®l'"-` Gainesville c.1 � , Ocala vi,,-.,, ,',, ail.. 4 -- '41''' ''4j' - ''''' '',(1 .7,;77.j,,,:,6 „.. ,,. A/ Sar isota l� Serving Florida For Over 70 Years Ocala Gaittesuille Sarasota Tallalta cc AUDIT PROPO SAL GREATER TALLAHASSEE CHAMBER OF COMMERCE, INC. 1 AND AFFILIATES I 222 NE 1ST STREET GAINESVILLE, FL 32601 2347 SE 17TH STREET OCALA, FL 34471 5001 LAKEWOOD RANCH BLVD N. SUITE#101 SARASOTA, FL 34240 443 EAST COLLEGE AVE TALLAHASSEE, FL 32301 (00,,,,,,, , . Purvis, Gray and Company, LLP („...... A—Title Page PROPOSAL FOR AUDITING SERVICES RFP No. 17-005 City of Ocoee Purchasing Agent 150 N. Lakeshore Drive Ocoee, Florida 34761-2258 Submitted by Purvis, Gray and Company, LLP Certified Public Accountants Laurel Ridge Professional Center 2347 S.E. 17th Street Ocala, Florida 34471 (352) 732-3872 Subject: Proposal for Auditing Services RFP No. 17-005 Due Date: September 14, 2017 @ 2:00 p.m. Contact: Helen Y. Painter, C.P.A., Partner Helenp@purvisgray.com I Ocala . Gainesville • Tallahassee • Sarasota I City of Ocoee—RFP No. 17-005 Auditing Services 1 B-TABLE OF CONTENTS Working Paper Retention Purvis,Gray and Company has implemented a system of quality controls,which includes the retention of audit work papers for a minimum of five years. We confirm that all work papers and reports will be retained,at our expense,for a minimum of five years after the release of the audit. We will provide access to the working papers,at no charge to the City or their designees, as reasonably requested. Also, the retention period can be extended for an additional period,if requested in writing by the City. A—Title Page 1 B—Table of Contents 2a-2b C—Letter of Transmittal and Brief Summary 3-4 D—Mandatory Criteria Independence of the City 5 License to Practice in Florida 5 Affirmative Statements: Financial Stability 5 Certification of Non-Segregated Facilities 5 Statement of Affirmation and Intent 6 Public Entity Crime Statement 6 Insurance Requirements 6 Drug Free Workplace 6 E—Firm's Qualifications 1—Governmental Experience(References) 7 2—Staff Training Programs 8 3—Governmental Audit Areas: Governmental Experience 9 Water and Sewer Utility,and Governmental Sectors Experience 10 Electric Utilities Experience 11 Defined Benefit Plan Experience 12 Single Audits 13 Grant Experience 13 Certificate of Achievement for Excellence in Financial Reporting 14 4—Commitment to Governmental Sectors Firm's Commitment to the Water and Sewer Utility and Governmental Sectors 14 Memberships of Professional Organizations 15 5—Peer Quality Review Program 15 6—Range of Management Advisory Services Governmental Audit Staff 16 Accounting and Tax Services 16 Information Technology(IT)Department 17 Consulting 18 Firm Personnel 19 7—Tax-Exempt Bonds 20-21 F—Personnel Qualifications Team Roles 22-23 Continuing Quality of Staff 23 Résumés-Qualifications of Firm Personnel 23-40 City of Ocoee—RFP No. 17-005 Auditing Services 2a B--TABLE OF CONTENTS G—Audit Approach Understanding the Scope of Services 41 Work Plan 41-42 Proposed Segmentation of the Engagement 43 Level of Staff 43 Approach to be Taken in Using Statistical Sampling in the Engagement 44 Analytical Procedures 44 Approach to Auditing Internal Control Structure 44-45 Approach to be Taken in Determining Laws and Regulations that will be Subject to Audit Test Work 45 Extent of Computer Software to be Used in the Engagement 46 Approach to Reviewing Information Systems 47 H—Price Proposal 48-49 I—Other Forms Summary of Litigation 50 Acknowledgment of Addenda 50 Exhibit"G"RFP Conflict of Interest Disclosure Form 51 Company Information/Signature Sheet 52 Certificate of Liability Insurance 53 City of Ocoee—RFP No. 17-005 Auditing Services 2b Purvis Gray & Company Evaluation Committee City of Ocoee Ocoee, Florida C—TRANSMITTAL LETTER AND BRIEF SUMMARY We appreciate the opportunity to present Purvis, Gray and Company, LLP to your Evaluation Committee and would take great pride in being selected as auditors for the City of Ocoee(the City). We have received your Request for Proposal(RFP) No. 17-005 for Auditing Services for the years ending September 30,2017, 2018,and 2019,and a renewal option for two additional years. We have read and understand the scope of services and requirements to be performed,and give you our express commitment to meet or exceed the performance and time specifications contained therein. Purvis, Gray and Company is a state-wide CPA firm employing approximately seventy professionals and support staff in our Ocala,Gainesville,Sarasota,and Tallahassee offices. Our multiple office locations throughout the state are the result of organic growth of the firm, without merger or acquisition, which we attribute to our pursuit of technical excellence and great client service. Our firm is currently providing auditing services to twenty-four Florida municipalities, five Florida counties, six Florida school boards,seven rural electric cooperatives and many other governmental special districts and nonprofit organizations. Your audit would be conducted primarily from our Ocala and Sarasota offices. The individuals comprising your audit teatn are highly experienced in all areas of governmental accounting and auditing,and have been assembled on your audit team for those attributes. As the Partner listed on this proposal,I am authorized to make representations for and to bind our firm. Why Purvis,Gray and Company? • Over 70-years History of Providing Excellent Client Service ■ Extensive Experience in Auditing Local Governments Similar in Size and Scope to You • Quality and Experience of our Engagement Team,Including Partner on Site • Technical Consultant Assigned to Engagement Serves on GFOA Special Review Committee for the CAFR Program and the FGFOA Program and Technical Resources Committees • Our Commitment to Constant Communication and Availability for Questions Year-round at No Additional Cost ■ Audit Approach: • Understand the Business Risks Associated with the City • Place Experienced Audit Team in the Field • Identify and Resolve Issues Early,Meet Deadlines • Extensive Federal and State Single Audit Experience ■ Technology Proficiencies and Efficiencies: • Fully-paperless Audit Systems • Computer Assisted Audit Techniques(CART) • Information Technology Professionals to Perform IT General Controls Review • Industry Leaders in GASB Standards, Will Assist Staff with the new OPEB Standard • 16 Hours of CPE Credits Offered to Clients Annually,at No Charge • Availability to meet with Mayor and City Commissioners one-on-one for review and explanation of CAFR We appreciate the opportunity to introduce Purvis,Gray and Company to the City. If we can supply you with additional information or discuss this commitment further with you,we will be available at your convenience. Respectfully submitted, PURVIS,GRAY AND COMPANY, LLP 2347 SE 17th Street,Ocala, Florida 34471 352.732.3872 r , HelenpPpurvisgray.com Hel-n Y. Pai er,CPA,Audit Partner City of Ocoee—RFP No. 17-005 Auditing Services 3 CITY OF OCOEE We are extremely pleased to present our fig" credentials to provide auditing services f - � to the City. You will be a valued client i- t � + 1 • and you can be assured that the i" engagement will command immediate . attention and priority service from our firm. We are confident that we have the � r professional skills, relevant technical ' / ' experience, audit team availability, and - ,,,f commitment to provide the level of W ' service that you require. The detailed information requested in your RFP begins f on page 5. Below is a brief summary of our experience: C-TRANSMITTAL LETTER AND BRIEF SUMMARY Understanding Scope of Work Personnel Qualifications our firm's goals is to perform as much audit We have read your Scope of Services Purvis, Gray and Company's number one work as possible during interim fieldwork. beginning on page 17 of your RFP. We priority is client service. The best way to This allows us to better schedule our annual understand the services to be provided provide valuable service is with quality workload, and minimize the pressure on and we give you our express commitment personnel, and we pride ourselves on your staff to maintain timetables and meet to meet and exceed the performance and finding and hiring the best employees. Our deadlines after year-end. In addition, it time specifications contained therein. Information Technology professionals permits the earliest possible identification have extensive experience and proficiency and resolution of contentious or Independence and Firm License working in various computerized controversial accounting and auditing We are independent of the City as defined environments. They are familiar with a issues and we fully intend and expect to by the AICPA and in Government Auditing wide variety of accounting and operational meet all of your audit deadlines. Standards. We are properly licensed and software products. We believe that client External Quality Control Review registered for public practice in the State of service starts with open communication, Florida. Our professional staff are properly and in-depth knowledge of the City that Purvis, Gray and Company is a member of licensed and registered to practice as will continue beyond the delivery of our the AICPA's Governmental Audit Quality certified public accountants in the State of product. We will respond quickly to Center (GAQC). Our firm places high Florida or"exam-eligible". your needs. You will not have to train our priority on its quality control and has auditors;we do not randomly rotate staff, undergone a peer review made by the Firm's Qualifications AICPA at least every three years since 1979. and you will regularly see partners and Our firm maintains a specialized practice managers in the field. All our Audit Because our firm has a heavy and we represent a large clientele of Department personnel are in full concentration of governmental audit governmental audits throughout the State compliance with the continuing clients, several governmental audit of Florida. We have developed our educational requirements of the State of engagements are selected for review by presence in the audit industry over the past Florida and the AICPA. the peer review team. We are pleased to 70 years to include 24 municipalities, five report that our 2016 peer review received counties, six school boards, over 30 Audit Approach a pass rating, the highest level that you nonprofit organizations, and various other Our approach is designed to avoid can obtain, and there was no letter of for-profit entities. interruption of service, raise the standard comment. A copy of our current peer Client References of service, and establish ongoing channels review has been provided in this proposal. of communication with management and Cost Effectiveness Based upon the track record that we have your audit committee. We will conduct an effective audit as established,we are a known commodity in the State of Florida,and you can verify from Our clients have remarked on the ease of efficiently as possible for a competitive our references the level of expertise and our transition with minimal disruption and fee. Our audit fees include year-round service you will be receiving from our firm. investment of management's time. One of phone calls troubleshooting,and research questions. City of Ocoee—RFP No. 17-005 Auditing Services 4 D- MANDATORY CRITERIA Independence of the City We are independent certified public accountants as defined by generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. We are independent of the City as defined in the U.S. Government Accountability Office's Government Auditing Standards and generally accepted auditing standards. We have had no professional relationships involving the City, or any of its agencies or component units, during the past five years. Accordingly, we have no conflicts of interest relative to performing the proposed audit. We confirm that we will give the City written notice of any professional relationships entered into involving the City, or any of its agencies or component units, during the period of this agreement. Licensed to Practice in the State of Florida The legal name of our firm is Purvis, Gray and Company, LLP (Purvis, Gray and Company). We are organized as a Florida Limited Liability Partnership, authorized to do business in the State of Florida. We are properly licensed and registered for public practice as certified public accountants in the State of Florida. All audit staff assigned to your engagement are licensed to practice as certified public accountants in the State of Florida or"exam eligible". A copy of their CPA license is attached to their résumé, beginning on page 24. A copy of our firm license to practice in Florida is shown below: RICK SCOT1 ACWEANCW 'FN�AWEON SECAC*TCAs STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REDULATION BOARD OF ACCOUNTANCY Nwa:nF �. 1 1C ACCOUNTANCY PARTNERSHIP Na-AeC Tebw IS LICENSED Unix the p,ovY ons of CANON 473 FS -- E.#aaor oau DEC)t,2017 PURVTS.GRAY AND CC+IAPANY RV 1 IR PO BOX 141270 GAfNEAVILLE EL 32N14 NO. S+.Tl - _..E AI AS RF,] 'I 1 t'.1551 .c.• ,J s, Affirmative Statements Financial Stability Purvis, Gray and Company has been in business since 1946, is financially stable, and has never been in or filed for any bankruptcy proceedings. Our firm's banking reference is SunTrust Bank, NCF, Ms. Diane Donegan, (352) 264-2077; Diane.donegan@SunTrust.com. Certification of Non-Segregated Facilities By submission of this bid, Purvis, Gray and Company certifies that the Firm does not and will not maintain or provide for our employees any segregated facilities at any of our establishments,and that the Firm does not permit its employees to perform their services at any location, under its control, where segregated facilities are maintained. The Firm 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. The Firm further certifies that no employee will be denied access to adequate facilities on the basis of race, color, religion, national origin, habit, local custom, or otherwise. Purvis, Gray and Company will not be using any subcontractors. City of Ocoee—RFP No. 17-005 Auditing Services 5 D-- MANDATORY CRITERIA Affirmative Statements(Concluded) Statement of Affirmation and Intent Purvis, Gray and Company 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. 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 Firm certifies that no City Commissioner, other City Official or City employee directly or indirectly owns assets or capital stock of the Firm's entity, nor will directly or indirectly benefit by the profits or emoluments of this proposal. The Firm 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 Firm agrees to immediately notify the City in writing. The Firm 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 contained in the RFP documents. The Firm agrees to abide by all conditions of the negotiation process. In conducting negotiations with the City, the Firm offers and agrees that if this negotiation is accepted, the Firm 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 Firm. The proposal constitutes a firm and binding offer by the Firm to perform the services as stated. Public Entity Crime Statement Purvis,Gray and Company affirms that neither the Firm nor any person associated with the Firm,who will work on this engagement, has been placed on the convicted vendor list as defined by Florida Statute Section 287.133 (2)(a). Insurance Requirements Purvis, Gray and Company maintains all the required insurance coverage, and a copy of our Certificate of Liability Insurance can be found on page 53. Drug Free Workplace Purvis, Gray and Company is an equal opportunity employer, and maintains a Drug-Free Workplace. No person in our firm has been placed on the convicted vendor list following a conviction for public entity crime in the past five years. City of Ocoee—RFP No. 17-005 Auditing Services 6 E-- FIRM'S QUALIFICATIONS 1—Governmental Experience (References) Client Name: CITY OF KISSIMMEE, FLORIDA Scope of Work Audit of all City operations, including Single Audit of federal and state grant programs. Participates in the GFOA Certificate Program. Date September 30, 2016 to Present Engagement Partner Mark A. White, CPA Engagement Manager Kathryn B. Eno, CPA Ms.Amy Ady, Finance Director (407)518-2220 Contact Information 101 Church Street, Suite 430 AADY@kissimmee.org Kissimmee, Florida 34741 Client Name: CITY OF BUSHNELL, FLORIDA Audit of all City operations, including Single Audit of federal grant programs. Scope of Work Participates in the GFOA Certificate Program. Date September 30, 1995 to Present Engagement Partner Helen Y. Painter, CPA Engagement Manager Kathryn B. Eno, CPA Mr. Bruce Hickle,City Manager (352)793-2591 Contact Information 117 East Joe P. Strickland,Jr.Ave. Bhickle@cityofbushnellfl.com Bushnell, Florida 33513 Client Name: CITY OF DADE CITY, FLORIDA Scope of Work Audit of all City operations, including Single Audit of federal grant programs. Date September 30, 2014 to Present Engagement Partner Helen Y. Painter, CPA Engagement Manager Kathryn B. Eno, CPA Ms. Leslie Porter, Finance Director (352)523-5052 Contact Information 38008 Meridian Avenue jport@dadcityfl.com Dade City, Florida 33525 Client Name: FLORIDA MUNICIPAL POWER AGENCY Scope of Work Audit of all Agency operations(a Florida Special District). Date September 30, 2004 to Present Engagement Partners Mark A. White, CPA, and Helen Y. Painter, CPA Engagement Manager Kathryn B. Eno, CPA Mr. Mark Larson, CPA, CFO (407)355-7767 Contact Information 8553 Commodity Circle mark.larson@fmpa.com Orlando, Florida 32819 Client Name: CITY OF OCALA, FLORIDA Audit of all City operations, including Single Audit of federal and state grant programs Scope of Work and three defined benefit pension plans. Participates in the GFOA Certificate Program. Date September 30, 2000 to Present Engagement Partners Mark A. White, CPA, and Timothy M.Westgate, CPA Engagement Manager Alison L.Stone, CPA Mr.John Zobler, City Manager (352)401-3976 Contact Information 110 S.E. Watula Avenue, 3'd Floor izobler@ocalafl.org Ocala, Florida 34471 City of Ocoee—RFP No. 17-005 Auditing Services 7 [-FIRM'S QUALIFICATIONS 2—Staff Training Programs As members of the Governmental Audit Quality Center of the AICPA,each CPA is required to obtain eighty hours of continuing professional education every two years. Over 75% of Purvis, Gray and Company's audit engagements are governmental clients; accordingly, many of our continuing professional education programs are related to governmental accounting and auditing. The continuing professional education material is presented by nationally prominent accounting professors and other individuals who have thorough knowledge of auditing both municipal and county governments. Our partners, managers, and senior staff members also attend annual conferences sponsored by the FGFOA, FMEA/FMPA, and FACC where they attend and teach continuing education classes that deal with new GASB pronouncements and current issues in Florida law that affect local governments and other similar topics. Client accounting staff are routinely invited to attend our continuing education classes throughout the year at no cost, which generally equals 16 hours per year. The following is a brief list of some of the governmental continuing education class topics that our partners and staff have recently taught: • Auditing Update—Hot Topics for Fiscal Officers and Auditors ■ Debt-Accounting,Covenants,Compliance • State-shared and Local Option Revenues for Cities and Counties • Governmental Compliance Auditing in Florida—Local Laws and Regulations • What to Expect from Your Auditors • Internal Controls for Managers • GASB Statement No.51—Accounting and Financial Reporting for Intangible Assets • GASB Statement No.53—Accounting and Financial Reporting for Derivative Instruments ■ GASB Statement No.54—Fund Balance Reporting and Governmental Fund Type Definitions • GASB Statement No.57—OPEB Measurements by Agent Employers and Agent Multiple-Employer Plans • GASB Statement No.60—Service Concession Arrangements • GASB Statement No.61—Reporting Entity • GASB Statement No.62—Codification of AICPA and FASB • GASB Statement No.63—Deferrals Presentation ■ GASB Statement No.64—Derivative Terminations • GASB Statement No.65—Assets and Liabilities–Reclassification and Recognition • GASB Statement No.66—Technical Corrections • GASB Statement No.67—Financial Reporting for Pension Plans(amending GASB No.25) ■ GASB Statement No.68—Accounting and Financial Reporting for Pensions(Amending GASB No.27) • GASB Statement No.69—Government Combinations and Disposal of Government Operations ■ GASB Statement No.70—Accounting and Financial Reporting for Nonexchange financial Guarantees • GASB Statement No.71—Pension Transition for Contributions made Subsequent to the Measurement Date • GASB Statement No.72—Fair Value Measurement and Application • GASB Statement No.75—Other Post-Employment Benefits ■ GASB Statement No.76—GAAP Hierarchy ■ GASB Statement No.77—Tax Abatements • GASB Statement No.78—Pensions Provided Through Multiple Employer DB Plans ■ GASB Statement No.79—External Investment Pools ■ GASB Statement No.80—Blending of Component Units • GASB Statement No.81—Irrevocable Split Interest Agreements ■ GASB Statement No.82—Pension Issues • GASB Statement No.83—Certain Asset Retirement Obligations • GASB Statement No.84—Fiduciary Activities • The New Pension Accounting Standards: A Game Changer! • Understanding the New COSO Framework(Florida Association of School Business Officials) • Internal Controls and Fraud and GASB Update(FSFOA Conference) ■ The New Federal"Omni Circular"Effects on the Auditee and Auditor • FASB Update(2016) • GASB Update(2016) City of Ocoee—RFP No. 17-005 Auditing Services 8 E- FIRM'S QUALIFICATIONS 3--Governmental Audit Areas Government Experience Our governmental experience includes the following audits during the past five years. Audits performed in accordance with Government Auditing Standards or Federal and/or State Single Audits are indicated by an asterisk"*". ..mow:.. Counties tft •Bradford County* •DeSoto County* *Gadsden County* •Hernando County* •Marion County* Municipalities .Nassau County* •City of Alachua* •City of Atlantic Beach* •City of Bartow* *City of Belleview* *City of Bushnell* *Town of Bronson* •City of Cedar Key* *City of Dade City *City of Deltona* •City of Eustis* •City of Fernandina Beach* •City of Fort Meade* •City of Green Cove Springs* f *City of Jacksonville Beach* •City of Kissimmee* •City of Lake City* *City of Lake Wales* •City of Live Oak* •City of Newberry* •City of Neptune Beach* *City of Ocala* •Town of Orange Park* •City of Sarasota* •City of St.Cloud* *City of St.Augustine Beach* *City of Williston* Education Related •Alachua County District School Board* *Charlotte County School Board* •Clay County School Board* •Hernando County School Board* .i •Lake County District School Board* •Marion County School Board* •The Villages Charter School, Inc. * City of Ocoee—RFP No. 17-005 Auditing Services 9 E- FIRM'S QUALIFICATIONS 3—Governmental Audit Areas (Continued) Water and Sewer Utility, and Governmental Sectors Experience Special Districts •Bartow Municipal Airport Development Authority •Dog Island Conservation District •East County Water Control District •Florida Gas Utility(FGU) •Florida Municipal Power Agency(FMPA) •Gainesville-Alachua County Regional Airport Authority •Kissimmee Utility Authority(KUA) r •Lake Wales Airport Authority •Lakewood Ranch CDDs •North Sumter County Utility Dependent District •Northwest Florida Water Management District •Peace River Manasota Regional Water Supply Authority •The Villages Community Development Districts •Withlacoochee Regional Water Supply Authority Water, Sewer, and Gas Utilities •City of Alachua •City of Atlantic Beach •City of Belleview •City of Bushnell •City of Cape Coral •DeSoto County •Dog Island Conservation District,Tallahassee •East County Water Control District, Lehigh Acres •City of Eustis •City of Fernandina Beach •Florida Gas Utility,Gainesville •City of Fort Meade •Gainesville Regional Utilities •City of Green Cove Springs •Hernando County •City of Jacksonville Beach •City of Lake City •City of Lake Wales •City of Live Oak •City of Neptune Beach •City of Newberry •North Sumter County Utility Dependent District •City of Ocala •Peace River Manasota Regional Water Supply Authority •City of Sarasota •Talquin Electric Cooperative, Inc.,Quincy 'Town of Orange Park •Village Center Community Development District&Affiliates,The Villages •City of Williston •Withlacoochee Regional Water Supply Authority,Dade City City of Ocoee—RFP No. 17-005 Auditing Services 10 [— FIRM'S QUALIFICATIONS 3—Governmental Audit Areas (Continued) Electric Utilities Experience Purvis, Gray and Company is the premier firm for audits of electric utilities in the state of Florida. Electric utilities have complex accounting and regulatory requirements, and the understanding of these requirements is beneficial to audits of water,sewer,and other utilities. Below is a list of our electric utility audits during the past five years. Electric Utilities Municipalities and Special Districts •City of Alachua A. 3., •City of Bartow •City of Bushnell 1 •Florida Municipal Power Association,Orlando •City of Fort Meade *Gainesville Regional Utilities 'City of Green Cove Springs •City of Jacksonville Beach •Kissimmee Utility Authority, •City of Mount Dora •City of Newberry •City of Ocala •City of St.Cloud(OUC Electric Operating Agreement) •City of Williston Rural Electric Cooperatives *Central Florida Electric Cooperative, Inc.,Chiefland II •Chocta;uhatchee Electric Cooperative, Inc„ DeFuniak Springs : •Lee County Electric Cooperative, Inc., North Ft. Myers •Peace River Electric Cooperative, Inc.,Wauchula !L• � *Sumter Electric Cooperative, Inc.,Sumterville s ' •Talquin Electric Cooperative, Inc.,Quincy •Withlacoochee River Electric Cooperative, Inc., Dade City City of Ocoee—RFP No. 17-005 Auditing Services 11 E- FIRM'S QUALIFICATIONS 3—Governmental Audit Areas (Continued) Defined Benefit Plan Experience Defined Benefit Plans Munroe Regional Medical Center Pension Plan Florida Pest Control and Chemical Company,Inc.Pension Plan and Trust Clay Electric Cooperative Retiree Welfare Plan Kissimmee Utility Authority Pension Trust Fund City of Atlantic Beach,Florida General Employees'Retirement Plan City of Atlantic Beach,Florida Police Retirement Plan City of Bartow General Employees'Retirement Plan City of Deltona,Florida Firefighters' Pension Plan City of Fernandina Beach,Florida General Employees'Pension Plan City of Fernandina Beach,Florida Police Officers'and Firefighters' Pension Plan City of Fort Meade,Florida General Employees'Pension Plan City of Fort Meade,Florida Police Officers'Pension Plan City of Fort Meade,Florida Firefighters' Pension Plan City of Green Cove Springs,Florida Police Officers'Pension Plan City of Jacksonville Beach,Florida General Employees'Retirement System City of Jacksonville Beach,Florida Police Officers'Retirement System City of Jacksonville Beach,Florida Fire Fighters'Retirement System City of Lake City,Florida General Employees'Pension Plan City of Lake City,Florida Police Officers'Retirement Plan City of Lake City,Florida Firefighters' Pension Plan City of Mt.Dora,Florida General Employees'Retirement Plan City of Mt.Dora,Florida Police Officers'Retirement Plan City of Mt.Dora,Florida Firefighters'Retirement Plan City of Neptune Beach,Florida Police Officers'Pension Plan City of Ocala,Florida Police Officers'Pension Plan City of Ocala,Florida General Employees Pension Plan City of Ocala,Florida Firefighter Pension Plan City of Orange Park,Florida Police Officers'Pension Plan City of Orange Park,Florida Fire Fighters'Pension Plan City of Orange Park,Florida General Employees'Pension Plan City of St.Cloud,Florida General Employees'Retirement Plan City of St.Cloud,Florida Police Officers'and Firefighters' Retirement Plan City of Sarasota,Florida General Employees'Pension Plan City of Ocoee—RFP No. 17-005 Auditing Services 12 E-FIRM'S QUALIFICATIONS 3—Governmental Audit Areas(Continued) Single Audits The auditor is responsible for testing compliance with laws and regulations that would have a material effect on the City's financial statements. As such,we will design our audit programs to ensure compliance with key areas. Following are our responsibilities when a Single Audit is required: • Federal Award Compliance-2 CFR Part 200(Uniform Guidance) If a Federal Single Audit is required (generally total federal grant expenditures exceeding $750,000 during the audit period), the auditor is responsible for testing internal controls and compliance for each major federal award program. • State Award Compliance-Florida Single Audit Act If a Florida Single Audit is required(generally total state grant expenditures exceeding$750,000 during the audit period), the auditor is responsible for testing internal controls and compliance for each major state financial assistance project. If a Federal or State Single Audit is required, each major program or project will be tested for the internal controls and compliance requirements applicable to that project. In some areas, we will combine our compliance tests of laws and regulations that involve the inspection of documentation supporting transactions with substantive tests of transactions and with our test of controls. In other words,we will use multipurpose sampling techniques. Grant Experience As a large audit firm with significant governmental experience,members of your audit team have participated in single audits of countless federal and state grant programs. Many of our single audits have included grants from the following Federal and State Departments including numerous programs within each. Federal Grant Programs State Grant Programs Federal Communications Commission Clean Florida Council Federal Emergency Management Agency Executive Office of the Governor National Endowment for the Arts Office of Early Learning National Endowment for the Humanities State Courts System National Science Foundation Florida Department of Agriculture and Consumer Services US Department of Agriculture Florida Department of Children and Families US Department of Agriculture Food and Nutrition Service Florida Commission on Tourism US Department of Aviation Administration Florida Department of Community Affairs US Department of Children and Families Florida Department of Corrections US Department of Commerce Florida Department of Economic Opportunity US Department of Commerce NOAA Florida Department of Elder Affairs US Department of Defense Florida Department of Emergency Management US Department of Economic Opportunity Florida Department of Environmental Protection US Department of Education Florida Department of Fish and Wildlife Commission US Department of Education of Elementary Secondary Education Florida Department of Health US Department of Election Assistance Commission Florida Department of Health and Rehabilitative Services US Department of Energy Florida Department of Highway Safety and Motor Vehicles US Department of Environmental Protection Agency Florida Department of Housing Finance Corporation US Department of Federal Highway Administration Florida Department of Juvenile Justice US Department of General Services Administration Florida Department of Legal Affairs and Attorney General US Department of Health and Human Services Florida Department of Library and Information Services US Department of Homeland Security Florida Department of Management Services US Department of Housing and Urban Development Florida Department of Natural Resources US Department of Interior Florida Department of State US Department of Justice Florida Department of Transportation US Department of Labor Florida Department of Workforce Innovation US Department of Treasury US Department of Transportation City of Ocoee—RFP No. 17-005 Auditing Services 13 E- FIRM'S QUALIFICATIONS 3—Governmental Audit Areas(Concluded) Certificate of Achievement for Excellence in Financial Reporting The technical consultant and independent review partner assigned to the City's audit, Mr. Mark A. White, CPA is a member of the FGFOA Technical Resources and Programs Committees (including the FRS-GASB 68 Task Force). He serves on the GFOA Special Review Committee for the Certificate of Achievement for Excellence in Financial Reporting. As such,they review CAFRs on behalf of GFOA all through the year,learning new techniques and presentation to help the City retain this award. Members of the audit team assigned to the City's audit are members of FGFOA, attend FGFOA continuing professional education events, and have provided technical expertise and assistance to some of the following local governments and helped these governments receive the Certificate of Achievement for Excellence in Financial Reporting: Marion County Marion \av'aii City of Jacksonville School Board Colony Comity Beach I City of Ocala City of Green Cove __.-- p 8 Snns 1 r i I i City of Lake County Eustis \i City of School Board i1 r j. 'y, Belleview Hernando City of Cowuty —"_ ._. Deltona F-�_ l * .,i : r City of Saint Hemando County ( Cloud School Board City of 1 —\ -- Bushnell i t O l u �'t5 Conaty Certificate of City of Sarasota C k � _1 Achievement for v Excellence in __ ii Financial Reporting ,� Clients ' 4—Commitment to Governmental Sectors Firm's Commitment to the Water and Sewer Utility and Governmental Sectors Because of our extensive experience with water and wastewater utilities, we are familiar with the financial, regulatory, political, and environmental issues surrounding your industry. As part of our firm commitment to the utility industry, some of our partners have taught sessions on utility accounting, workorder costing, and continuing property record systems, accounting for other postemployment benefits (OPEB), and taxation of tax-exempt entities (tangible tax,gross receipts tax, sales tax, etc.). Our firm has also performed numerous special purpose consulting engagements for utilities. City of Ocoee—RFP No. 17-005 Auditing Services 14 [- FIRM'S QUALIFICATIONS 4—Commitment to Governmental Sectors (Concluded) Memberships of Professional Organizations Purvis, Gray and Company has been a member with the American Institute of Certified Public Accountants since 1978 (AICPA – Reference #1783188). Our firm continues to be in good standing with the AICPA and Florida Institute of Certified Public Accountants (FICPA–Member#02004618). Several of the partners and staff of Purvis, Gray and Company are members of the following organizations: ■ Professional Memberships • AICPA • FGFOA • FICPA • GFOA • FECA • North Florida Chapter FGFOA • American Public Power Association(APPA) • Southwest Chapter FGFOA • State of Florida League of Cities • Florida Bankers'Association • Association of Government Accountants(AGA) • Big Bend Chapter FGFOA • Gulf Coast Chapter FGFOA • Nature Coast Chapter FGFOA • Sarasota Chamber of Commerce • Lakewood Ranch Business Alliance FN 5—Peer Quality Review Program RS Fowler,Volley,Rambo&Staivey,f.C. C:En!Ii lib Pl➢t°�IC ACCOONTA10-2 BUS,NEBS CONNSULTANT6 Purvis, Gray and Company is a member 020611 r.,..C„...Cr.. Calm r,awe rN 020022.222 Pee r,a a,rte,a Memt CPA of the AICPA's Governmental Audit "crania Kasaifio `ti"Can Eafl """"'(Id°' ° 7"'° `100tRaeol+21) `°'latsit 242-7M2 Quality Center(GAQC). Our firm places Salem Reeirw Report high priority on its quality control and has undergone a peer review made by the AICPA at least every three years Spernbrl,. { 6 since 1979. Because our firm has a Tr,d"Parntcr,of heavy concentration of governmental Punic Grin and Gxsp^ny.I.I.P and Arc Patna)Pict Nrvirrr COMIIIIMtee clients, governmental audit We breve reviewed the nam of:polity zonal fur the a:cuwttMs¢and nudging practice of Pian is.(.ra} 'a are selected for review byr" '`u"" Plda Ian,mafiosi for r�r,..r usual Vi 31,Ntla ft,wet stat aged engagements armee with the Stmtua r Int Perf rnsm@ and%moot,ng.at Poch R Ws,e++a l»Red rr.rnc Pu. R hlandw land/al the Arun-tan an Institute of Certified Public.Ac,mint. .Au a pan of our peer rrsicw the peer review team. We have canal ma,a real:Pon Main,,d apps abk.in determining outran the outand maw afoun prank.. n o fas rrsprrauibic for to a tninLt a nuan ret qualaj email Aral aortas with a i. included a copy of our 2016 Peer 1 site fan with erasable mtrnanoc tat;mamma mid hepatin[_in ennfirmnp with nppii:able protesaiontt yawlsrdc in all malenal rr,pexu (Lr re ps athtllr .s b, nut,as ca,inson on the dory r. Review Report, which included a pass ufthe l atrm of gnnla,contn>t and the l ampliuna therewith bawd.0 our mien The awn. ohjc Ines,au+pe,hnritau:ars at,and the preauthers perfmrad in a Svetcnt Raw.are dr nrihrd in the rating, with no letter of comments, the standard;at own ii:paors./ovari us highest level that you can obtain. reatirni M " M,;the ""hard' nerinv W nd for rr `e.aped d cripacianis unformed wan d`n rraisa ami tmg Sr 112AMM "Mils n1"ernMemar benefit plans and an admonition of a as .man[ration iSsrvicc(1rgan ion%Cantr..l(SOO2 enaroommtl. In our opinion,the ssrtcm of Ritalin control fur the acceatinp and araiitinppndwc of Punic.Errav ad - Uanpra"y,t,t.Pin Ahkt la the>aar ended slat"31,31116.has Ian malt,dcramd and cnmpikd with • an provide the firm r-nh rma.tnahle ecoirar>e oP performing and reprnlog sa anafuadr>=rah tpplrca lrlr pnofessRmal standards in all material rrspuers Firma c a ruing of pat, pater omit'kF TntTafe,or Rail War.,.(tars andfr'enpnn, 1. I'Is, as ad atpia renew,'cling Pt/NW I outer,lane!,Ramo R%r1 e, P('. V City of Ocoee—RFP No. 17-005 Auditing Services 15 [- FIRM'S QUALIFICATIONS 6—Range of Management Advisory Services Purvis, Gray and Company was founded in 1946, in Gainesville, Florida by two University of Florida accounting professors, Mr. Roy Purvis and Mr. Howard Gray. The firm has been in business over seventy years and has been auditing local governments for substantially all of that time. Purvis, Gray and Company has grown into an organization with over seventy professionals and support personnel. The firm offers all services traditionally associated with CPA firms,which can generally be summarized as Audit,Tax, Information Technology, and Consulting services. We offer all these services described below, in each of our local offices throughout the State of Florida. 9, , Governmental Audit Staff The Audit Department is the largest department in the firm. The mission of the department is to achieve technical excellence which can be used to provide the highest level of quality service to our clients. This higher level of service sets us apart from other firms. Our audit staff consists of six partners, eight managers, and seventeen other professional staff. All of the partners and managers are CPAs, as are many of the other professional staff. If not CPAs, the professional staff are "exam-eligible" or working toward it. Your"engagement team" will consist of five members, headed by a partner and manager,with the partner and manager on-site for a significant portion of fieldwork. It is anticipated that all personnel assigned to the City's audit would work on the engagement on a full-time basis. For more information on the specific individuals committed to your engagement, please refer to the staffing diagram found on page 22. Our audit staff has extensive experience working in a computerized environment and utilizes notebook computers in the field with Windows XP, and Microsoft Word and Excel. We employ a paperless audit approach. We utilize the "paperless" audit documentation system designed by CaseWare International, Inc., the premier industry technology, with an integrated wired or wireless connection in the field. We are also familiar with most other word processing and spreadsheet software, and a wide variety of accounting software packages, including American Data Group. All members of the audit team will be available to your management team whenever you need us. If our physical presence is not needed, our business e-mail addresses and cell phone numbers will be made avaiiable for your convenience, and we pride ourselves on responding timely to all client inquiries. We will be available for troubleshooting year-round without additional billings. Accounting and Tax Services The Accounting and Tax Services Department of Purvis,Gray and Company is often used in troubleshooting problem tax areas associated with audits entities. Our tax professionals deal with issues such as bond arbitrage rebate calculations, payroll tax problems, ERISA compliance for employee benefit plans,unrelated business income tax issues, tax effects of planned giving, charitable annuities and remainder trusts, and other tax topics. This department is also responsible for the preparation of payroll and income tax returns for individuals and businesses including corporate, partnership, estate, and trust tax returns. In addition, this department provides tax research support to our Audit Department. City of Ocoee—RFP No. 17-005 Auditing Services 16 E- FIRM'S QUALIFICATIONS 6—Range of Management Advisory Services (Continued) Information Technology(IT) Department We have an Information Technology Department that has been incorporated as Purvis, Gray Technology Group, LLC since 2000, which provides high levels of expertise in technology solutions to clients and supports our Audit Department in auditing clients' information systems. Your IT Consultant, Mr. Gary R. Heder, CISA, CRISC, manager, has the ability to provide business insight by leveraging knowledge of information relationships and supporting technologies by focusing on information management and technology assurance. He possesses an understanding of the following skills: • Risk Assessment—Initial evaluation of risks that may impact the possibility of a material misstatement or the vulnerability of an organization's assets with initial assumptions, research, and uncertainties. it Fraud Considerations—Consideration of the risks of material misstatement due to fraud and determine specific IT techniques to detect fraud. o Internal Control and IT General Controls: • Internal Controls—Provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for externa! purposes/use. • Information Technology General Controls—Control objectives relate to the confidentiality, integrity, and availability of data and the overall management of the IT function of the business enterprise. • Information Security—Understand, identify, design, implement, and monitor processes/systems used to enable security of information. • Evaluate,Test, and Report: • Types of Audit and Attest Services—Provide assurance to the public on financial statements, a client service, or a specific segment or piece of an entity's operations. • Auditing Techniques and Procedures—Techniques and options to design and execute testing procedures. • Assessment of Controls—Evaluation process of controls and the entity's environment after examination and testing. • Information Assurance—Provide assurance on the presentation, timeliness, and auditability of information. • Information Management and Business Intelligence: • Information Management—Ensure that information is managed such that it provides value in a number of aspects. • Business Process Improvement—Identify opportunities and understand the value of using information technology to create work flows and processes that enable more effective use of • resources. • Data Analysis and Reporting Techniques—Process of gathering, modeling, and transforming data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. • Performance Management—Apply data analysis and reporting concepts to analyze enterprise performance and help the organization achieve its accountability goals and objectives, using financial and non-financial information. Additionally, our IT Specialists are Microsoft Certified Systems Engineer (MCSE) and Microsoft Certified Professional (MCP). These IT Specialists assist the IT Consultant in assessing network, operating system, and database technologies. City of Ocoee—RFP No. 17-005 Auditing Services 17 [- FIRM'S QUALIFICATIONS 6—Range of Management Advisory Services (Continued) Consulting m a n 04e me n t All members of the audit team will be available to your management team rwhenever we are needed. If our physical presence is not needed,our business reSnn\d�ation e-mail addresses and cell phone numbers will be made available for your V4\13 04convenience, and we pride ourselves on responding timely to all client • $t\r at o�y inquiries. We will be available for troubleshooting year-round without t e O Wn 0, 9 3 additional billings. The consulting practice of Purvis, Gray and Company utilizes members of the Audit, Accounting and Tax Services, and IT Departments to perform a wide-range of consulting and management advisory services for our clients. Our consulting personnel have performed engagements in each of the following categories: • Accounting System Reviews and Documentation • Business Valuations and Reorganizations ► GASB Statement Implementations ► Business Ownership Succession ► Internal Control Reviews ► Business Valuations ► Procedures Documentation ► Mergers and Acquisitions ► Performance Audits and Cost Reduction Studies ► Business Formations ► Feasibility/Efficiency Studies ► Business Liquidations ► Budget Review and Budget Preparation • Utility and Cost Studies • Other Financial Services ► Rate/Revenue Sufficiency Studies ► Expert Testimony ► Reviews of Power Supply(Electric and Gas)Alternatives ► Personal Financial/Retirement Planning ► Overhead/Indirect/Other Cost Studies ► Other Financial Services ► Landfill Closure and Postclosure Analysis ► Tax Representation ► IRS Arbitrage Rebate Calculations and Consultation ► Fraud/Defalcation Engagements ► Utility Billing System Setup and Revision ► Water-Sewer Work Order Systems and Property Records ► FAS 71—Deferred Cost/Revenue Plans Independence rules govern the performance of consulting services for clients audited under Government Auditing Standards. Any consulting services performed for the City would be in compliance with those standards. City of Ocoee—RFP No. 17-005 Auditing Services 18 E- FIRM'S QUALIFICATIONS 6—Range of Management Advisory Services (Concluded) Firm Personnel MANAGING PARTNER David A. Gaitanis, C.P.A. AUDIT DEPARTMENT Partners Managers Professional Staff Ronald D. Whitesides, C.P.A. Terry W. Kite, C.P.A. Steven W. Huss, C.P.A. Mark A. White, C.P.A. Roberto A. Martinez, C.P.A. Matthew B. Ganoe, C.P.A. Helen Y. Painter, C.P.A. Alison L. Stone, C.P.A. Kevin W. Fyfe,C.P.A. Timothy M. Westgate, C.P.A. Gary R. Heder, CISA, CRISC Alexander P. Mackriss, C.P.A. Ryan M.Tucker, C.P.A. Kevin R. Smith, C.P.A. Jeremiah M. Brown, C.P.A. Barbara Boyd, C.P.A. George W. Presnell, Ill,C.P.A. Mary C. Burns, C.P.A. Tiffany K. Mangold, C.P.A. Laurie A. Walker Kathryn B. Eno, C.P.A. Gabriel J.Terrell Lauren A. Brown Ashley M. McGraw Ken C. Lee Katrina Esparra Karli R. Story Samantha Yazwinski Taylor Q. Eason Sean P.Toner ACCOUNTING AND TAX SERVICES Partners Managers Professional Staff Steven T. Lee, C.P.A. Eric J. Benton, C.P.A. Belinda C. Rembert, C.P.A. Andrew R. Spahn, C.P.A. Janell M. Martin, C.P.A. Linda S. Pollock, C.P.A. Fred L. Doerr, C.P.A. Lizette M. Wagoner, C.P.A. Melissa N. Bender, C.P.A. James W. Patray, Ill,C.P.A. Emily J. Newsom, C.P.A. Leanne M. Rodriguez Rachel A. Clements, C.P.A. Helen A. Ingmarsson, C.P.A. Hiren R. Patel Jeremy T. Lacey, C.P.A. Christopher M.Ziegler Kimberly M. Mottl, C.P.A. Brent A. Bathurst Lisa Marousky,C.P.A. Kari M. Presnell Heather J. Whitston, E.A. INFORMATION TECHNOLOGY DEPARTMENT Partner in Charge Network Consulting Programmer/Analyst Timothy M. Westgate, C.P.A. Jon S. May, MCP Leah G. Oehmig, MCP.MBSS Gary R. Heder, CISA, CRISC Joshua C. Cook, MCP,A+,NET+,VCP,MCSA,ITIL,MCTIP ADMINISTRATION DEPARTMENT PARAPROFESSIONALS–(4 Members Not Individually Listed) SUPPORT STAFF–(12 Members Not Individually Listed) City of Ocoee—RFP No. 17-005 Auditing Services 19 E- FIRM'S QUALIFICATIONS 7-TAX-EXEMPT BONDS As a large regional CPA firm, Purvis, Gray and Company is well received by underwriters,financial advisors, and insurers in the tax-exempt bond markets. We have provided assistance to the following clients in dealing with the tax-exempt bond markets on numerous occasions: Governmental Entity Amount Florida Municipal Power Association $ 1,152,390,000 Village Community Development Districts(15 CDDs) 1,043,846,031 Florida Gas Utility 694,175,000 Osceola County,Florida 273,335,000 Marion County,Florida 314,074,821 City of Gainesville,Florida 220,000,000 City of Ocala,Florida 217,805,000 City of Sarasota,Florida 216,956,000 City of Deltona,Florida 237,675,000 City of Cape Coral,Florida 167,920,000 City of Jacksonville Beach,Florida 159,164,335 City of Leesburg,Florida 149,205,000 City of Fort Myers,Florida 146,088,741 City of St.Cloud,Florida 80,586,000 City of Lake City,Florida 73,306,650 Gainesville Regional Utilities 68,950,000 City of Atlantic Beach,Florida 61,475,750 Hernando County,Florida 46,140,000 City of Alachua 43,750,000 City of Kissimmee,Florida 42,930,000 Peace River/Manasota Regional Water Supply Authority 42,695,000 District School Board of Lake County 41,345,000 Nassau County,Florida 38,472,307 DeSoto County,Florida 32,556,000 Kissimmee Utility Authority 30,005,000 City of Lake Wales,Florida 25,257,629 Alachua County,Florida 17,136,400 City of Mount Dora,Florida 11,198,400 City of Fernandina Beach,Florida 8,865,000 Marion County District School Board 8,704,500 Gainesville-Alachua Regional Airport Authority 7,410,580 City of St.Augustine,Florida 6,420,000 City of Newberry 5,775,000 City of Green Cove Springs,Florida 5,500,000 Lakewood Ranch Community Development District(5 CDDs) 4,905,000 City of Bushnell,Florida 3,558,000 City of Belleview,Florida 3,000,000 District School Board of Hernando County 2,323,000 City of Eustis,Florida 2,200,000 Gadsden County,Florida 1,366,801 Clay County District School Board 620,000 District School Board of Alachua County 225,000 City of Ocoee—RFP No. 17-005 Auditing Services 20 E-- FIRM'S QUALIFICATIONS 7—Tax Exempt Bonds (Concluded) In addition to our bond experience, Purvis, Gray and ,,. Company also provides assistance with the following: ✓Issued Numerous Consent Letters and Comfort Letters as Part of the Overall Service to Our Governmental Clients During the Issuance of Such Bonded Debt ✓Assisting Bond Counsel in Drafting Bond Indentures Which are Consistent with Accounting Principles and Terminology IDesigning Economic Covenants Which are Achievable by the Issuer and Provide Acceptable Security to Buyers • Meeting with Underwriters, Bond Rating Agencies and Bond Buyers to Clarify Accounting and Financial Matters • Providing Required Certifications that Covenants or Other Indenture Requirements Have Been Met ✓ Computations of Arbitrage Rebates Pursuant to Sections 148 and 103 of The Internal Revenue Code ✓ Providing Escrow Verification Reports ✓ Compiling Required Secondary Market Disclosure Preparing Parity Debt Reports and Calculations City of Ocoee—RFP No. 17-005 Auditing Services 21 F-- PERSONNEL QUALIFICATIONS Team Roles The firm that will be the most qualified to serve as auditors for the City will be the Jill" one that can demonstrate its qualifications through past experience, education, and ,' high quality control considerations. Our firm's approach to staffing audit engagements is to choose partners, managers, and staff based upon a combination 4of the expertise, experience, and technical ability needed to perform the audit q". ...NO engagement efficiently, and the location of the office. The individuals assigned to this engagement possess the necessary technical skills and experience to ensure that the City receives the highest level of service. All personnel assigned to this engagement have met or exceeded all of the CPE requirements of the"Yellow Book" as required by the Rules of the Auditor General. One thing we do differently from other firms–we regularly put partners in the field. Ms. Helen Y. Painter, C.P.A., will be the partner in charge of the City's audit engagement. She has over twenty-two years of experience in accounting and auditing for governmental bodies, nonprofit organizations and commercial enterprises. Mr. Mark A. White, C.P.A., will be the technical consulting partner and Ms. Kathryn B. Eno, C.P.A. will be the manager assigned to your engagement. The partner in charge and/or the manager in charge will be present during most of the audit fieldwork. All audit staff assigned to your engagement are licensed to practice as certified public accountants in the State of Florida or are "exam-eligible." i` 1 ° , Partner in Charge of Audit Technical Consultant and Helen Y. Painter,CPA Independent Review Partner " Information Technology Consultant eL Gary R.Heder,CISA,CRISC Mark A.White,CPA Manager Kathryn B. Eno CPA Supervisor Senior Auditor Laurie A.Walker Senior Auditor Matthew B.Ganoe,CPA Staff Auditors As Needed City of Ocoee—RFP No. 17-005 Auditing Services 22 F- PERSONNELL QUALIFICATIONS Team Roles(Concluded) • Role of the Partner in Charge of Audit Overall responsibility for excellent client service, will work closely with client's management and audit manager to ensure that all work is properly planned, executed, and completed. Conducts entrance, exit, and interim work conferences with client and participates extensively in audit fieldwork and the review process. • Role of the Technical Consultant and Independent Reviewer This team member will provide consultation and review of technical accounting and auditing issues, and a final "cold" review of the audited financial statements and reports. • Role of the Manager and Senior Auditor These team members will be primarily responsible for planning, conducting, and completing all fieldwork. They will participate in entrance, exit, and interim work conferences, and will keep the partner in charge and client fully informed on the job status. In addition, their responsibilities include staff supervision and report preparation. They will review the workpapers and assist in the effectiveness and efficiency of the audit,operating within the time budget. • Role of the Information Technology Consultant This team member will supervise or perform the review of the City's Information Technology Environment and key IT General Controls, Application Controls, and IT-Dependent Manual Controls in consultation with the audit team. He will also supervise or perform Computer Assisted Audit Techniques (CAAT) or data analysis in consultation with the audit team. This team member will provide recommendations to strengthen the City's Information Technology Environment and IT-related controls. He will also provide assistance on any IT-related issues, as deemed necessary by the audit team. Continuing Quality of Staff We expect your audit team members to be available throughout your contract and option periods. While some staff turnover inevitably occurs, our firm makes every effort to maintain the high quality of our staff. We do this through hiring the best people, providing more than the minimum required continuing education, mentoring, and, most importantly, upper management participate in the audit fieldwork thereby providing true on-the-job training. We do not hire seasonal employees and staff turnover has been relatively low compared to industry standards in the past three years. The audit team members listed in this proposal have all been with our firm for at least three years. If it did become necessary to change any team members on your audit, it would be discussed with you in advance,and we would obtain your written approval. The City has the right to approve or reject replacements. Résumés-Qualifications of Firm Personnel Beginning on the next page,the partner in charge, consultants, and manager résumés provide more specific information for each individual, especially their participation in local government audits, relevant continuing professional education for the past three years, memberships, and copy of licenses to practice as a Certified Public Accountant in the State of Florida. City of Ocoee—RFP No. 17-005 Auditing Services 23 Helen Y. Painter, CPA Partner Member of Quality Control Tearr 111 Member of Concurring Review Tear . Speaker/Instructor Florida School Finance Officers Association Conferences Florida Association of School Business Officials Conference Numerous In-house CPE Classes Florida State University 2003 -Spring Accounting Conference Contact Information Fraud in the Not-For-Profit Environment Florida Local Government Investment Trust Group o Ocala, Florida Nature Coast Chapter of the FGFOA O (352) 732-387 Author o h•ainter ci)•ury :{ • '`` The Audit Process, Talking Stick, April/May 2005 www.purvisgray.com Experience Serving Clients Profile: K„ ,, Governmental Experience School Board Experience Education:,::, "`".. ', ` .. Hernando CountySchool Board* Alachua County, Florida* a �„ � a�: Florida* Citrus County School Board—Internal �r8•ue e• en � �'�'iC�i t'rS1 � City of Belleview, 1994, Masters,Accounting ,, , Bradford County, Florida* Accounts 1993, BS, Accounting City of Bushnell, Florida* Academy for Environmental Science City of Center Hill, Florida Charter School Graduated Palm Beach Community Citrus County,Florida* The Villages Charter School,Inc. College ' Citrus County Housing Authority* 1 ]9' `J�„ S City of Dade City* City of Deltona, Florida* Professional Credentials: City of Dunnellon, Florida* A • �� ��a Florida Municipal Power Agency h �erCi' ate--=; Member AICPA, FICPA, FGFOA, and City of Fort Myers, Florida* Nature Coast Chapter FGFOA Gadsden County, Florida* FICPA Peer Reviewer Team Captain Hardee County, Florida* Peer Review Acceptance Committee Hernando County, Florida! 2004 Competent Toastmaster(CTM) . City of Jacksonville Beach, Florida* Uistinguishment Lakewood Ranch Community Districts Member of Florida Thoroughbred City of Leesburg, Florida* Brae• * • • .• > � -- .' Liberty County, Florida* Committees: Marion County, Florida* eCity of Mount Dora, Florida* . . C(3U' 'ng;hid;• - a i '' • r1- Florida* Standards -i City of Ocala, Florida FICPA Accounting and Auditing Sections City of Palmetto, Florida Steering Committee City of St.Cloud, Florida* FICPA Peer Review Committee , Villages Center Community Development Districts North Sumter County Utility Dependent ' �� � � 7 District Yea with Firm: 22 Wakulla County, Florida* '_ City of Williston, Florida* City of Ocoee—RFP No. 17-005 Auditing Services 24 Helen Y. Painter, CPA Partner Member of Quality Control Team Member of Concurring Review Team Experience Serving Clients (Concluded) Not-For-Profit Experience Not-For-Profit Experience (Concluded) Advocacy Research Center-Marion,Inc.* Sumter Electric Cooperative, Inc. Alachua Habitat for Humanity,Inc. Suwannee Valley Electric Cooperative,Inc. Arnette House,Inc. United Gainesville Community Development Corporation,Inc. Buffalo Scholarship Foundation, Inc. United Way of Alachua County, Inc. The Centers, Inc. United Way of Marion County, Inc. Central Florida Community College Foundation, Inc.* University of Central Florida Research Foundation Central Florida Electric Cooperative, Inc. University of Florida Division of Housing Central Florida Health Care, Inc. University of Florida Research Foundation, Inc. Childhood Development Services, Inc.* University of Florida Tissue Bank, Inc. Coalition for Youth, Inc. University Villages Apartments(HUD)* Counseling and Resource Center for Women and Families, Inc. Villages Foundation, Inc. Early Learning Coalition of Nature Coast Early Learning Coalition of Marion County For-Profit Experience Florida Agriculture Center and Horse Park Authority Advocacy Resource Center Marion, Inc. Retirement Plan Florida Autism Charter School of Excellence, Inc. The Villages Charter School,Inc.Employee Savings Plan Florida Electric Cooperatives Association, Inc. Florida Sheriffs Youth Ranches,Inc. Pension Plan and Trust Florida Low Income Housing Associates, Inc.* WRYP,ALF, Inc. (HUD) Florida Rural Electric Credit Union Partnership for Strong Families, Inc.401(k) Profit Sharing Plan Florida Sheriffs Youth Ranches, Inc. Florida Thoroughbred Breeders'and Owners'Association Stonecrest Property Owners Association Florida Thoroughbred Breeder and Stallion Awards Program Golden Hills Golf and Turf Club,Inc. Florida Equine Publications, Inc. The Holding Company of the Villages Employee Savings Plan Gainesville Golf and Country Club Heartland Rural Health Network,Inc. Financial Institution Experience Hernando County Education Foundation Villages Bancorporation,Inc. Meadowbrook Academy Citizens First Trust Company, LLC Partnership for Strong Families, Inc. Citizens National Bank of Leesburg Peaceful Paths, Inc. Liberty National Bank Santa Fe Community College Endowment Corp.,Inc. Newberry Bank Silver River Mentoring&Instruction, Inc. Southern Legal Counsel, Inc. *OMB Circular A-133 or Uniform Guidance Single Audits and/or Florida Single Audits (E)—Electric (G)—Natural Gas (W)—Water (5)—Sewer CPA License STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY 1 �4cI The GERTIFIFDpBf ICACCOONTANT _._...,..._.._...�_.....___.....____......__. ._..__....._I Named below IS LICENSED UndeN the pttrvWOns M Chapter 473 FS . , Exoeaton date DEC 31,2017 0 e'� PAINTER.HELEN YVONNE PURVIS GRAY AND COMPANY '- + 222 NE 1ST STREET ,."• GAINESViLLE FL 32601 e O. SS'IEO '2..'T'7Ut DISPLAY AS RELIIRFD 9Y LAW SEA e ;.'1 e.nowaf City of Ocoee—RFP No. 17-005 Auditing Services 25 CPE CEDITS Ms.Painter is in full compliance with the continuing educational requirements set forth under U.S.General Accounting Office(GAO), Government Auditing Standards. A list of the relevant continuing professional education for the past three years follows: 2017 2016 2015 PGC Winter 2017 Tax CPE: Spring 2016 Tax CPE: Winter CPE Session: Procedural Updates-Admin,XCM,Tax Updates Department Updates&Current State of Affairs Firm and XCM Updates Department Updates and Current State of Affairs The 10th Circle of Hell — Partnership R&M S&M:A Capital Ideal Estate,Gift&Trusts—An Update&Refresher Termination of Partner's Interest Hot Topics in Employee Benefits Penalty Abatement&Appeals Shared Responsibility Pains of ACA Pass Through Updates 11205&1065s Personal Representative&New Audit Rules Behind the Calculations—AMT&Capital Gains All in the Family Employer Grouping-ACA 1040 Updates Individual Updates&ACA for Individuals Pass-Through Issues&Update Estate,Gift,and Trusts—An Update&Refresher An Exempt Organization Update 1040 Issues&Updates Pass-Through Entity Updates Estate,Gift&Trust Tax Research FGFOA Nature Coast Chapter Annual Meeting: SSARS Changes&Updates Business Combinations: Mergers, New GASB Standards That May Affect The Best of all the Rest Reorganizations&Spinoffs Your Government's Financial Reporting Nature Coast FGFOA CPE: ACA Update for Individuals&Employers New GASB Standards That May Affect Your Florida Economic Update Tax Extenders&2017 Major Reform Government's Financial Reporting-Ins Cred GASB Update AICPA Peer Review Update Course Uniform Guidance&Compliance Supplement Layered Security Nature Coast FGFOA: Update on Investments, Best Practices, Employee Use of Social Media It is Not Just About Sex Anymore — SEC Regulations Current Municipal Market Best of Accounting Complexities Facing Affordable Care Act Harassment in the Workplace Local Governments How HR Can Reduce WC Costs Best of Accounting Complexities Local Govt. Tax Implications on Buying & Selling Dealing with Negative People Internal Controls-Financial Reporting Function Transactions in Local Government AICPA Peer Review Program Advanced Course Economic Update and Impact on Local Govts. Preparing the Retirement FGFOA Annual Conference: Four Leaders—Which One Are You? The Art of Corrective Discipline A Closer Look at the New Pension Standards The Budget Officer's Role in Capital Budgeting 4 Leaders—Which One Are You? Federal Single Audit Act Updates Update on Best Practices in Investments RAB Member Training Internal Auditing 101 AICPA Peer Review Must Select Industry Update FSFOA Summer Conference: Lessons Learned from Recent Fraud Cases Revenues,Accounts Receivable,&Cash Receipts FSBA Update/FADSS What do Investors Think of your City SEC&GASB 79 Accounting&Auditing Update GASB Update&New Uniform Guidance Market Updates Pronouncements&Issues Ethics: Protecting the Integrity of Florida CPAs FRS Update PGC Summer CPE Part 2: A&A Update Budget Users Group Firm Inspection&Peer Review PGC Summer CPE: Economic Update Is it Consulting or Agreed Upon Procedures Common CAFR Financial Reporting Errors Auditor General Update Single Audit Changes Understanding&Discussing Common IT Findings PGC Summer CPE: Internal Control over Utility Billing Peer Review&Quality Control Update Uniform Guidance Understanding Changes Nonattest Services&Independence FRS GASB 68 Entries:A Walk Thru GASB 68,Trials&Tribulations,Year II Introduction to IT Reviews ASU No.2016-14-Nonprofit Entities GASB 68,Disclosures&RSI Employee Benefit Plan Deficiencies Introduction to the AICPA Audit Guide Firm Inspection&Peer Review FGFOA Nature Coast Chapter CPE: ERISA Employee Benefit Plans Audit Updates Update on Best Practices in Investments GASB 77: Tax Abatements 990s for Auditors FGFOA Central Florida Chapter CPE: Sampling&Practical Applications Auditing IT General Controls in Government GASB Update FGFOA 2017 Annual Conference: AICPA Peer Review Update Milestone Governmental CPE Day Importance of Government-wide Financials North Central Chapter of the FGFOA: PGC Fall CPE Session: Understanding New GASB OPEB Developing Good Internal Control Government&Nonprofit Highlights Public Defined Contribution Plans Cyber Security,Identity Theft Practices GASB 72 Uniform Grant Guidance PGC Fall CPE: Now is the Time—Your Internal Controls CaseWare Tips and Tricks Government&Nonprofit Uniform Update GASB 68 How to Audit Payroll Fraud Awareness Tax Projections How to Audit Expenditures&Accounts Payable SEC Changes for Money Market Funds Creating&Sustaining Multi-yr.Finance Plan City of Ocoee—RFP No. 17-005 Auditing Services 26 • • Mark A. White, CPA Audit Partner Member of Concurring Review Team Member of Accounting and Tax Services Practice Management Team 111Speaker/Instructor f GASB Statement No.68-Implementation Issues,FICPA Conference;Orlando,Florida Local Option and State-shared Revenues,FGFOA Conferences;Miami,Florida Audits of Nonprofit Organizations, FICPA Annual Accounting Conference;Miami,Florida Numerous In-house CPE Classes ® MarkW hlt: pu rvis ra 00111 Fixed Assets and GASB Statement No.34-FACC;Internal Controls for Managers—FACC WW N.purvi5•r ,, -.®.,� „ , GASB Statement No.34-Florida Association of Counties Governmental and Nonprofit Update,USF Accounting Circle • rofi e; GASB Statement No.34-FGFOA Conference GASB Statement No.45-OPEB-FACC/FGFOA,Governmental Audit Update for Financial Managers Graduated University of South Florida : GASB Statement No.53-Derivative Financial Instruments,FGFOA Conference 1977, BA, Major in Accounting °; GASB Update,Nature Coast FGFOA Chapter ProesS o al Credentials New Pension Accounting Standards-A Game Changer,FGFOA Conference,Other FGFOA CPA Certificate 1979 Chapter Meetings,and FICPA SLG Conference Member AICPA, FICPA, GFOA, & FGFOA • Member of Nature Coast Chapter FGFOA Author ,.e..0 . _'�! !. •,,,,. .1 FICPA Chapter Dealing With Landfill Closure/Postclosure Costs,FGFOA Newsletter FGFOA Technical Resources& Program What's New in the Auditor General Rules,FGFOA Newsletter Committees Florida's Unclaimed Property Law,CPA Today Magazine .0 ua CF President's Community Council- Do All Nonprofits Have to Implement FASB 116 and 117,CPA Today Magazine f GOA SRC Reviewer. Governmental Nonprofits and FASB Statement No.116 and No.117, FGFOA Newsletter GFOA Special Review Committee for Following the Rules of GASB 31, CPA Today Magazine Certificate of Achievement for " Member Alert-Current Accounting and Auditing Financial Reporting Issues, FGFOA Newsletter, Excellence in Financial Reporbn 'm What to Expect From Your Auditors, FGFOA Newsletter GASB Exposure Draft, FGFOA Newsletter FICPA Committee—State an.' . GASB Update, FGFOA Newsletter Governments Other Postemployment Benefits, FGFOA Newsletter CF Public Policy Institute CF Accounting Advisory Commute-' Managing the Audit Process-Practical Considerations For A Good Audit, FGFOA Newslette USF School of Accounting Advisory Co Three Big Things Coming Our Way:The Pension ED's, The Financial Projections PV and Proposed Single Audit Changes, FGFOA Newsletter Bond Refundings After GASB 65—FGFOA Newsletter Years in Accounting: 39 The New GASB Pension Standards—Florida CPA Today Magazine Years with Firm: 39 City of Ocoee—RFP No. 17-005 Auditing Services 27 Mark A. White, CPA Audit Partner Member of Concurring Review Team Member of Accounting and Tax Services Practice Management Team Experience Serving Clients School Board and Charter School Experience Nonprofit Experience Alachua County District School Board* Appleton Cultural Center,Inc. Charlotte County District School Board * ARC-Marion,Inc. * Hernando County District School Board * ARC-New Hope Foundation,Inc. Lake County District School Board * Arnette House,Inc.* Marion County District School Board* The Centers,Inc.* Francis Marion Military Academy Central Florida Community College Foundation,Inc.* Francis Marion Charter School Childhood Development Services,Inc.* Cornerstone School, Inc. Governmental Experience Daytop of Florida Foundation,Inc. Alachua County,Florida* Daytop Villages of Florida,Inc.* Alachua County Housing Authority* Discovery Science Center,Inc. City of Belleview,Florida* Early Learning Coalition of Hernando County,Inc.* City of Bushnell,Florida* Early Learning Coalition of Leon and Gadsden County,Inc.* Citrus County,Florida* Early Learning Coalition of Marion County,Inc.* City of Deltona, Florida* Early Learning Coalition Nature Coast, Inc.* City of Dunnellon, Florida* Florida Low Income Housing Associates,Inc.* City of Eustis,Florida* Florida Association of Court Clerks,Inc. City of Fort Myers, Florida* Golden Hills Golf and Country Club,Inc. Gilchrist County,Florida* Hospice of Marion County Inc.and Affiliates City of Jacksonville Beach,Florida* Kids Central, Inc.* City of Leesburg,Florida* M.A.D.D.A.D.S.of Greater Ocala,Inc.* Marion County EMS Alliance Meridian Behavioral Healthcare,Inc. * Marion County, Florida * Munroe Regional Development Foundation,Inc. City of Mount Dora,Florida * Pediatric Primary Care Foundation,Inc. * City of Ocala,Florida * The Villages Charter School,Inc. Osceola County,Florida* United Way of Alachua and Marion County,Inc. City of St.Cloud,Florida * Sumter Landing CDD and Affiliates,Numbers 5-11 Villages Center CDD and Affiliates, Numbers 1-4 North Sumter County Utility Dependent District Withlacoochee Regional Water Supply Authority Utility Experience City of Bushnell, Florida (W,5) Lee County Electric Cooperative,Inc.(E) City of Deltona, Florida (W,5) City of Ocala, Florida(E,W,S) City of Eustis,Florida (W,5) Peace River Electric Cooperative,Inc.(E) Central Florida Electric Cooperative,Inc.(E) City of St Cloud,Florida(E,W,S) Florida Municipal Power Agency(E) Sumter Electric Cooperative,Inc.(E) City of Fort Myers,Florida(W,S) Suwannee Valley Electric Cooperative,Inc.(E) Gainesville Regional Utilities,Florida (E,G,W,5) Tri-County Electric Cooperative,Inc.(E) Gulf Coast Electric Cooperative, Inc. Villages Center CDD(W,5) City of Jacksonville Beach,Florida (E,W,S) North Sumter County Utility Dependent District(W,S) Kissimmee Utility Authority(E) Withlacoochee Regional Water Supply Authority,Inc.(W) City of Leesburg,Florida(E,G,W,S) Withlacoochee River Electric Cooperative,Inc.(E) City of Mount Dora,Florida(E,W,S) *OMB Circular A-133 or Uniform Guidance Single Audits and/or Florida Single Audits (E)—Electric (G)—Natural Gas (W)—Water (S)—Sewer City of Ocoee—RFP No. 17-005 Auditing Services 28 Mark A. White, CPA Audit Partner Member of Concurring Review Team Member of Accounting and Tax Services Practice Management Team CPA License STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY The CERTIFIED PUBLIC ACCOUNTANT r > teethed below IS LICENSED Under the P/[7verof!of Chapte!473 FS Expnratlon byte: DEC 31,2013 WHI IE MARK ALAN PURVIS GRAY AND COMPANY kits PO 8071 141270 'tib' GAINESVILLE FL 32E44-1270 1•' 1 'Ss N ISSUFLI I2AYZO15 DISPLAY AS RFt1UFRED EY LAW EEOC LI0t2 sPrIPPe`+ City of Ocoee—RFP No. 17-005 Auditing Services 29 CPECEDITS Mr.White is in full compliance with the continuing educational requirements set forth under U.S. General Accounting Office(GAO), Government Auditing Standards. A list of the relevant continuing professional education for the past three years follows: 2017 2016 2015 Winter 2017 Tax CPE: Spring Tax CPE: Winter CPE Tax Session: Procedural Updates-Admin,XCM,Tax Updates Procedural Updates—Ultra Tax&Fixed Asset Who are You Supporting An Exempt Org Department Updates and Current State of Affairs Department Updates&Current State of Affairs Estate,Gift&Trust The 10th Circle of Hell—Partnership SSARS Changes&Updates Estate,Gift&Trusts—An Update&Refresherp Penalty Abatement&Appeals Shared Responsibility Pains of ACA The Best of All the Rest Personal Representative&New Audit Rules Behind the Calculations—AMT&Capital Gains Nature Coast FGFOA CPE: 1040 Updates Florida Economic Update Pass-Through Issues&Update P Estate,Gift,and Trusts—An Update&Refresher (Instructor) GASB 1040 Issues&Updates Update( ) Pass-Through Entity Updates Tax Research Layered Security Tax Extenders,Kitchen Sink Business Combinations: Mergers, Employee Use of Social Media North Florida Central Chapter FGFOA Meeting: Reorganizations&Spinoffs Accounting Complexities Sparking Conversation for Financial Confidence Nature Coast FGFOA: GASB Update Part 1(Including Ins Cred) Affordable Care Act It is Not Just About Sex Anymore — GASB Update Part 2(Including Ins Cred) Local Government Accountability Update Harassment in the Workplace Single Audit Update Closer Look at New Pension Standards Best of Accounting Complexities Facing Local Investment Analyst Challenge Federal Single Audit Act Update Government Policy&Cash Flow Updates Putting EMMA to Work for You Internal Controls for the Financial Reporting Internal Control-Checks&Balances Accounting &Auditing Update: Function Introducing PGC's New Intranet Pronouncement&Issues 2015 Economic Update and Impact on Local FGFOA Annual Conference: Ethics: Protecting the Integrity of CPAs Governments Implementing the OMB's New Super Circular PGC Summer CPE Part 2: Four Leaders—Which One Are You? GASB 68—Lessons Learned Firm Inspection&Peer Review—Reminders The Budget Officer's Role in Capital Budgeting Accounting Complexities Facing Local Govts. Is it consulting or Agreed Upon Procedures Update on best Practices in Investments Local Government Accountability Updates Single Audit Changes Ethics:Protecting the Integrity of Florida CPAs Pension&Other Postemployment Benefits Internal Control over Utility Billing Award Winning CAFRs Internal Control over Payroll A&A Updates Best Practices for an Effective Year-end SSARS 21 PGC Summer CPE: Economic Update&Market Outlook SOC Reports Common CAFR Financial Reporting Errors Integrating IT into the Audit Process Nonattest Service&Independence Understanding&Discussing Common IT Findings FICPA State&Local Government Conference Employee Benefit Plan Deficiencies Peer Review&Quality Control Update Legislative Updates FEMA Annual Conference Training Sessions FRS GASB 68 Entries:A Walk Thru GASB 68—Implementations(Instructor) IT Related Issues ASU No.2016-14-Nonprofit Entities Thrive By Design PGC Fall CPE Session: PGC Fall CPE: Introduction to the AICPA Audit Guide Government&Nonprofit Highlights Government&Nonprofit Uniform Update GASB 77: Tax Abatements GASB 72 Fraud Awareness FGFOA 2017 Annual Conference: SEC Changes for Money Market Funds Now is the Time—Your Internal Controls Accounting Complexities Facing Local Govts. Creating&Sustaining Multi-yr.Finance Plan GASB 68(Instructor) Importance of Government-wide Financials FSFOA Fall Conference Milestone Governmental CPE Day Local Government Accountability Updates GASB Update Pronouncements(Instructor) How to Audit Cash/Investments City of Ocoee—RFP No. 17-005 Auditing Services 30 Gary R. Heder, CISA, CRISC Manager glot • Professional Profile Gary Heder is an experienced IT Audit professional with a stable background in multiple management positions within Fortune 500 companies. He has expertise in evaluating internal control risks and assessing compliance to company and regulatory requirements in the banking, insurance, manufacturing, retail, and governmental healthcare industries. Mr. Heder possesses relevant industry certifications and an understanding of technical environments. gheder@purvisgray.co ` www.purvisgray.com Information Technology Experience Profile: Application and Security Audits Infrastructure Audits '` ' " _'' ° "`" Disaster Recovery Graduated University of Wisconsin– Sarbanes-Oxley 404 Whitewater Vendor Management 1976, BA in Finance Data Analytics ,PrQfe$sional credentials Technical Skills Certified Information System Auditor, Certified in Risk and Information MVS CA Harvest Systems Controls AS400 SCCM Unix Tivoli EndPoint Manager Previous Employers, 1999-2015 Windows 0/S MS Office Suite: IGS roup; nc. DB2 Access Accretive Solutions SQL Visio Accounting Principals ,, Oracle Project Lincoln Financial Group Sybase DB Word Lowe's Companies, Inv ` People Soft HRMS Excel Wachovia Bank, NA Cisco ACL Analytics Check Point Lotus Notes Active Directory TeamMate Audit Software RACF COBIT Years Auditing ACF2 GTAG information Systems: 33 Top Secret Security Software NIST CA Endeavor FISMA ChangeMan HIPAA City of Ocoee—RFP No. 17-005 Auditing Services 31 Kathryn B. Eno, CPA Audit Manager Experience Serving Clients Contact Information Governmental Experience Ocala, Florida City of Belleview, Florida* (352) 732-3872 • Bradford County, Florida* . City of Bushnell, Florida* 0 Keno@purvisgray.com - Citrus County, Florida* www.purvisgray.com Citrus County Housing Authority City of Dade City, Florida* City of Dunnellon, Florida* City of Leesburg, Florida* Profile: City of Kissimmee, Florida* Marion County, Florida Education: City of Ocala, Florida* a N City of St.Cloud, Florida* The Villages Districts, Florida Graduated Millsaps College City of Williston, Florida 2007, Masters,Accounting 2005,BA, Business Administration School Board Experience Academy of Environmental Science Hernando County School Board* Prpfessiopal Credentials Lake County School Board* CPA Certificate-20149 '' Marion County School Board* Citrus County School Board Internal Accounts Member FGFOA and Nature Coast Chapter Not-For-Profit Experience Intermedia e Ingle u•it et cote '"P. Appleton Cultural Center, Inc. The Centers, Inc.* Childhood Development Services Church at the Springs Citrus Memorial Hospital Coalition for Youth* Early Learning Coalition Marion County* Early Learning Coalition Nature Coast, Inc.* Hospice of Marion County Hernando County Education Foundation, Inc. Kids Central, Inc.* Lifestream Behavioral Center* Years in Accounting: 10 Silver River Mentoring and Instruction Years with Firm: 10 University of Florida Research Foundation, Inc. St. Paul's Lutheran School Stonecrest Homeowners Association City of Ocoee—RFP No. 17-005 Auditing Services 32 Kathryn B. Eno, CPA Audit Manager Experience Serving Clients (Concluded) For-Profit Experience Utility Experience Central Florida Gaming, LLC Florida Municipal Power Agency(E,G) Villages Bank Kissimmee Utility Authority(E) Withlacoochee River Water Supply Authority(W) *OMB Circular A-133 or Uniform Guidance Single Audits and/or Florida Single Audits (E)—Electric (G)—Natural Gas (W)—Water (5)—Sewer CPA License RICK SCOTT.GOVERNOR KEN LAWSON.SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY b T M. 11 AC41242 The CERTIFIED PUBLIC ACCOUNTANT Named below IS LICENSED Under the provisions of Chapter 473 FS Expiration date. DEC 31,2018 ENO.KATHRYN BROWN e❑ 2812W ACORN COURT CITRUS SPRINGS FL 34433 h� City of Ocoee—RFP No. 17-005 Auditing Services 33 CPE CEDITS Ms. Eno is in full compliance with the continuing educational requirements set forth under U.S. General Accounting Office (GAO), Government Auditing Standards. A list of the relevant continuing professional education for the past three years follows: 2017 2016 2015 PGC Summer CPE: FGFOA Nature Coast Chapter Annual Meeting: FGFOA Annual Conference: Common CAFR Financial Reporting Errors New GASB Standards That May Affect Your GASB Hot Topics Understanding&Discussing Common IT Findings Government's Financial Reporting Impact of Changes to Integrated Peer Review&Quality Control Update Uniform Guidance&Compliance Supplement Controls FRS GASB 68 Entries:A Walk Thru Update on Investments, Best Practices, Opening General Session SEC Regulations A Closer Look at the New Pension ASU No.2016-14-Nonprofit Entities Best of Accounting Complexities Facing Standards Introduction to the AICPA Audit Guide Local Governments Federal Single Audit Act Updates GASB 77: Tax Abatements Preparing the Retirement Internal Auditing 101 Sampling&Practical Applications The Art of Corrective Discipline Lessons Learned from Recent Fraud CaseWare Tips&Tricks 4 Leaders—Which One Are You? Cases FGFOA 2017 Annual Conference: FGFOA Annual Conference: Building a Better Budget Document GASB Hot Topics GASB Hot Topics Legislative Update GASB Update Sponsoring Defined Benefits Plan Accounting &Auditing Update: Local Government Accountability Update Accounting Complexities Facing Local Govts. Pronouncement&Issues 2015 Accounting Complexities Facing Local Govts. Local Government Accountability Updates Ethics: Protecting the Integrity of CPAs mportance of Government wide Financials Opening General Session PGC Summer CPE Part 2 Pension&Other Postemployment Benefits Firm Inspection & Peer Review — Understanding New GASB OPEB Award Winning CAFRs Reminders Opening General Session Best Practices for an Effective Year-end Is it consulting or Agreed Upon Legislative Update Steps to Minimize Fraud Procedures Post Issuer Compliance Update Implementing the OMB's New Super Circular Single Audit Changes The Nuts&Bolts of Public Defined Plans Yellow Book&Single Audit Update Internal Control over Utility Billing How to Audit/Cash/Investments FSFOA Summer Conference: Internal Control over Payroll How to Audit Payroll DOE Update SSARS 21 How to Audit Revenues&Accounts Receivable FSBA Update/FADSS SOC Reports How to Audit Capital Assets SEC&GASB 79 Nonattest Service&Independence How to Audit Debt FRS Update Introduction to IT Reviews Budget Users Group Employee Benefit Plan Deficiencies Economic Update PGC Fall CPE Session Customer Service Government&nonprofit Highlights Auditor General Update GASB 72 PGC Fall CPE: Now is the Time—Internal Controls Government&Nonprofit Uniform Update GASB 68 Fraud Awareness Tax Projections Creating&Sustaining Multi-yr.Finance Plan Introducing PGC's New Intranet and IT Matters Accounts Payable on Related Internal Controls Ethics: Protecting the Integrity of Florida CPAs A&A Update Revenues,AR&Cash Receipts City of Ocoee—RFP No. 17-005 Auditing Services 34 Matthew B. Ganoe, CPA • Senior Auditor Experience Serving Clients ct information 0 Ocala, Florida Governmental Experience 42, (352) 732-3872 City of Bushnell, Florida* ® City of Deltona, Florida mganoe@purvisgray.com City of Eustis, Florida www purvisgray.com City of Green Cove, Florida* City of Kissimmee, Florida* City of Ocala, Florida* Profile: City of St. Cloud, Florida* City of Williston, Florida* Education. Marion County, Florida* Nassua County, Florida* Graduated Saint Leo University i Village Community Development Districts, Florida School Board Experience 2014, MBA,Accounting Concentration Citrus County District School Board Internal Accounts Clay County School Board* Hernando County School Board Lake County District School Board* Marion County District School Board* Professional Credentials: Villages Charter Schools CPA Certificate-20 Not-For-Profit Experience Arnette House, Inc. Member AICPA and FiCPA Childhood Development Services, Inc.* College of Central Florida Foundation Florida Agriculture Center and Horse Park Authority* -_ a Lake Sumter State College Foundation Marion County Public Education Foundation Marion Senior Services, Inc.* Partnership for Strong Families, Inc. The Centers, Inc.* Utility Experience City of Eustis, Florida (W,S) City of Ocala, Florida (E, W, 5) City of St. Cloud, Florida (W,5) Florida Municipal Power Agency(E) Gainesville Regional Utilities(E) Kissimmee Utility Authority(E) Years in Accounting: 7 Marion County, Florida (W,S) Talquin Electric Cooperative (E,W,S) Years with Firm: 2 Sumter Electric Cooperative(E) *OMB Circular A-133 or Uniform Guidance Single Audits and/or Florida Single Audits f (E)—Electric (G)—Natural Gas (W)—Water (5)—Sewer City of Ocoee—RFP No. 17-005 Auditing Services 35 Matthew B. Ganoe, CPA Senior Auditor Experience Serving Clients (Concluded) Employee Benefit Plan Experience Employee Benefit Plan Experience (Concluded) Childhood Development Services, Inc.403(b) Partnership for Strong Families, Inc. Clay Electric Cooperative Telecom Service Bureau Marion Senior Services, Inc. The Centers, Inc.401(k) Munroe Regional Medical Center 401(k) Villages Charter Schools Munroe Regional Medical Center Pension Plan *OMB Circular A-133 or Uniform Guidance Single Audits and/or Florida Single Audits CPA License RICK SCOTT.GOVERNOR KEN LAWSON,SECRETARY STATE OF FLORIDA UIPAR I MCN I UP BUS1Nr;4S ARO NHUF ESSIUNAL 14E1111LA}ION y; r BOARD OF ACCOUNTANCY ,A .. # TM rFPTIFIPn PI IP]to Ar"r`rta tNT.P Named bebw IS LICENSED er Pie provrsans of CTapber C33 ES ;�I a Ur E,poar,p,date DEC 31.2018 OANOE.MATTTIEW BERMAN LW X-- L i 10577 SE 74 TERR r"Id BELL BREW FL 3400 ,.' ..•%4 s,s. • ,ZO,:P,6 DISPLAY AS REQUIRED DY LAW ;ens Lt5•ro5o:or, City of Ocoee—RFP No. 17-005 Auditing Services 36 CPECEDITS Mr.Ganoe is in full compliance with the continuing educational requirements set forth under U.S. General Accounting Office(GAO), Government Auditing Standards. A list of the relevant continuing professional education for the past three years follows: 2017 2016 2015 Winter 2017 Tax CPE: Spring 2016 Tax CPE: Winter CPE Session: Procedural Updates-Admin,XCM,Tax Updates Procedural Updates—Ultra Tax&Fixed Asset Firm and XCM Updates Department Updates and Current State of Affairs Department Updates&Current State of Affairs Estate,Gift&Trusts—An Update&Refresher The 10"Circle of Hell—Partnership R&M S&M:A Capital Ideal Penalty Abatement&Appeals Shared Responsibility Pains of ACA Hot Topics in Employee Benefits Personal Representative&New Audit Rules Behind the Calculations—AMT&Capital Gains Pass Through Updates 1120S&1065s Pass-Through Issues&Update 1040 Updates All in the Family Employer Grouping-ACA 1040 Issues&Updates Estate,Gift,and Trusts—An Update&Refresher Tax Research Individual Updates&ACA for Individuals Pass-Through Entity Updates Business Combinations: Mergers, Reorganizati Tax Extenders,Kitchen Sink An Exempt Organization Update ACA Update for Individuals&Employers FGFOA Nature Coast Chapter Annual Meeting: Estate,Gift&Trust Tax Extenders&Major Reform New GASB Standards That May Affect SSARS Changes&Updates Nature Coast FGFOA: Uniform Guidance&Compliance Supplement The Best of all the Rest Harassment in the Workplace Update on Investments,Best Practices, Nature Coast FGFOA CPE: Best of Accounting Complexities Internal Best of Accounting Complexities Facing Controls for the Financial Reporting FunctionLocal Governments Florida Economic Update Economic Update and Impact on Local Govts. Tax Implications on Buying & Selling GASB Update Four Leaders—Which One Are You? Preparing the Retirement Layered Security The Budget Officer's Role in Capital Budgeting The Art of Corrective Discipline Employee Use of Social Media Ethics:Protecting the Integrity of Florida CPAs 4 Leaders—Which One Are You? A&A Updates Current Municipal Market P FGFOA 2016 Annual Conference: PGC Summer CPE: GASB Hot Topics Affordable Care Act Common CAFR Financial Reporting Errors Defined Benefit Plan How HR Can Reduce WC Costs Understanding&Discussing Common IT Findings Investing Funds in Rising Interest Rate Environment Dealing with Negative People Peer Review&Quality Control Update Labor Law for Government Professionals PGC Summer CPE Part 2: FRS GASB 68 Entries:A Walk Thru Opening General Session Accounting&Auditing Update ASU No.2016-14-Nonprofit Entities Retirement Plans Introduction to the AICPA Audit Guide Award Winning CAFRs Firm Inspection&Peer Review GASB 77: Tax Abatements(Instructor) Best Practices for Effective Yearend Closing Is it Consulting or Agreed Upon Procedures Sampling&Practical Applications Cyber Security,Data Breach,and PCI Compliance Single Audit Changes FSFOA Summer Conference: Integrating IT into the Audit Process Internal Control over Utility Billing GASB 68 Implementing OMB's New Super Circular Internal Control over Payroll Govt.Entity ERP Round Table PGC Summer 2016 CPE: y OPEB Hands on Training GASB 75 SSARS 21 GASB 67/68 Information Uniform Guidance:Understanding Key Changes SOC Reports Legislative Update GASB 68,Trials&Tribulations,Year II Nonattest Services&Independence Academic ROI GASB 68,Disclosures&RSI Introduction to IT Reviews Cash Flows&Forecasting Firm Inspection&Peer Review Economic Outlook Employee Benefit Plan Deficiencies Auditor General Update ERISA Employee Benefit Plans Audit Update PGC Fall CPE Session: FGFOA Annual Conference 990 for Auditors Government&Nonprofit Highlights Importance of Government-wide Financials Auditing IT General Controls in a Government GASB 72 Local Government Update Fall 2016 CPE: Now is the Time—Your Internal Controls Ethics for Government Employees Government and Nonprofit Accounting & GASB 68 RFPs Done the Right Way Uniform Guidance Update Tax Projections Understanding New GASB OPEB Fraud Awareness Accounts Payable Workshop Internal Controls SEC Changes for Money Market Funds How to Audit Expenditures&Accounts Payable Creating&Sustaining Multiyear Finance Plan 1065 Partnership Terminations&Transfers City of Ocoee—RFP No. 17-005 Auditing Services 37 I Laurie A. Walker Supervising Senior Auditor Contact Information Experience Serving Clients Ocala,Florida.. (352) 732-3872 Governmental Experience 0 Iwaiker@purvisgray.com R` City of Bushnell, Florida* Childhood Development Services, Inc. www.•Urvls:ra .COCl1 Citrus County,Florida* Citrus Memorial Hospital City of Deltona, Florida* Profile' City of Eustis,Florida* Marion County EMS Alliance, Inc. Marion County,Florida* City of Mount Dora,Florida* City of Ocala,Florida* Graduated Ho ors t L'p Un r it City of St.Cloud,Florida* University of Florida Division of Housing 2005, BS,Accounting University Village Apartments,Inc.* Villages Charter School,Inc.* Professional Credentials: School Board Experience Lake County District School Board* Marion County District School Board* Shands Healthcare, Inc. Internal Auditor Not-For-Profit Experience Intermediate Single Audit Certificate Advocacy Resource Center,Inc. ''' 4 *. -" Citrus Memorial Health Foundation,Inc. `. Early Learning Coalition of Marion County,Inc. 44 GLE AUDe> Early Learning Coalition of Pasco and Hernando, Inc. Early Learning Coalition of the Nature Coast,Inc. AICPA Hospice of Marion County, Inc. Marion Senior Services,Inc.Pediatric Primary Care Foundation,Inc. United Way of Marion County, Inc. Years in Accounting: 11 Years with Firm: 9 City of Ocoee—RFP No. 17-005 Auditing Services 38 Laurie A. Walker Supervising Senior Auditor Experience Serving Clients (Concluded) For-Profit Experience Utility Experience Custom Window Systems, Inc. City of Bushnell, Florida (W,S) WRYP ALF,Inc. City of Deltona, Florida (W,S) City of Eustis, Florida (W,5) Health Care Experience Marion County, Florida (W,S) City of Mount Dora, Florida (E,W,S) Advocacy Resource Center, Inc. City of Ocala, Florida (E,W,S) Citrus Memorial Health Foundation,Inc. City of St.Cloud, Florida (E,W,S) Hospice of Marion County, Inc. Marion County EMS Alliance, Inc. Pediatric Primary Care Foundation, Inc. WYRP ALF, Inc. *OMB Circular A-133 or Uniform Guidance Single Audits and/or Florida Single Audits (E)—Electric (G)—Natural Gas (W)—Water (5)—Sewer City of Ocoee—RFP No. 17-005 Auditing Services 39 CPE CEDITS Ms.Walker is in full compliance with the continuing educational requirements set forth under U.S.General Accounting Office(GAO), Government Auditing Standards. A list of the relevant continuing professional education for the past three years follows: 2017 2016 2015 Winter 2017 Tax CPE: Spring 2016 Tax CPE: Winter CPE Session: Procedural Updates-Admin,XCM,Tax Updates Procedural Updates— Ultra Tax & Fixed Firm and XCM Updates Department Updates and Current State of Affairs Asset R&M S&M:A Capital Idea! Estate,Gift&Trusts—An Update&Refresher Department Updates & Current State of Hot Topics in Employee Benefits Penalty Abatement&Appeals Affairs Pass Through Updates 11205&10655 Personal Representative&New Audit Rules The 10th Circle of Hell—Partnership All in the Family Employer Grouping- Pass-Through Issues&Update 1040 Issues&Updates Shared Responsibility Pains of ACA ACA Tax Research Behind the Calculations—AMT& Capital Individual Updates & ACA for Business Combinations: Mergers, Reorganizati Gains Individuals ACA Update for Individuals&Employers 1040 Updates An Exempt Organization Update Tax Extenders&Major Reform Estate, Gift, and Trusts — An Update & Estate,Gift&Trust Nature Coast FGFOA: Refresher SSARS Changes&Updates Harassment in the Workplace Pass-Through Entity Updates The Best of all the Rest Best of Accounting Complexities Tax Extenders,Kitchen Sink Nature Coast FGFOA CPE: Internal Controls Financial Reporting Function FGFOA 2016 Annual Conference: Florida Economic Update Economic Update and Impact on Local Govts. Accounting Complexities of Local GASB Update Four Leaders—Which One Are You? The Budget Officer's Role in Capital Budgeting Governments Layered Security Update on Best Practices in Investments Investing Funds in Rising Interest Ra Employee Use of Social Media Accounts Payable—Workshop Internal Controls Environment Current Municipal Market Ethics:Protecting the Integrity of Florida CPAs Local Government Accountability Affordable Care Act A&A Updates Update How HR Can Reduce WC Costs Revenues,Accounts Receivable&Cash Receipts Opening General Session Dealing with Negative People PGC Summer CPE: Award Winning CAFRs PGC Summer CPE Part 2: Common CAFR Financial Reporting Errors Best Practices for Effective Yearend Closing Accounting&Auditing Update Understanding&Discussing Common IT Findings Cyber Security, Data Breach, and PCI Firm Inspection&Peer Review Peer Review&Quality Control Update Compliance Is it Consulting or Agreed Upon FRS GASB 68 Entries:A Walk Thru Integrating IT into the Audit Process Procedures ASU No.2016-14-Nonprofit Entities Introduction to the AICPA Audit Guide Implementing OMB's New Super Circular Single Audit Changes GASB 77: Tax Abatements(Instructor) Yellow Book&Single Audit Update Internal Control over Utility Billing Sampling&Practical Applications PGC Summer 2016 CPE: Internal Control over Payroll Govt. FGFOA Annual Conference Uniform Guidance: Understanding Key Entity Enterprise Risk Management Changes SSARS 21 Importance of Government-wide Financials GASB 68,Trials&Tribulations,Year II SOC Reports Local Government Update GASB 68,Disclosures&RSI Nonattest Services&Independence Legislative Update Firm Inspection&Peer Review Introduction to IT Reviews Ethics for Government Employees ERISA Employee Benefit Plans Audit Employee Benefit Plan Deficiencies RFPs Done the Right Way Update Understanding New GASB OPEB 990 for Auditors PGC Fall CPE Session: Nuts and Bolts of Defined Contribution Plans How to Audit Payroll Auditing IT General Controls in a Government&Nonprofit Highlights How to Audit Expenditures&Accounts Payable Government GASB 72 Divorcee Accounting Issues Now is the Time—Your Internal Controls neer GQ City of Ocoee—RFP No. 17-005 Auditing Services 40 G-AUDIT APPROACH Understanding the Scope of Services We have read your RFP in its entirety and understand the City's Scope of Services, for the fiscal years ending September 30, 2017, 2018,and 2019, with an option for two additional,one-year renewal periods. We give you our express commitment to meet or exceed the performance specifications and time requirements stated in your RFP. Due to our concentration of work in the governmental industry,we fully understand the scope of services to be provided. We will perform a Financial Audit as defined by Government Auditing Standards and the Rules of the Auditor General under Chapter 10.550 and a Single Audit of the City's federal and state grant programs in accordance with OMB Uniform Grant Guidance(Super Circular) and conduct a single audit as prescribed in the Florida Single Audit Act. Work Plan This section describes the work plan for the year ending September 30, 2017 for the City. Upon being engaged as your auditors, we would immediately meet with the City's management team in September/October 2017,to discuss and establish a schedule within the established timetable to complete the audit by the end of March 2018. The presentations to the City Commission,would be in April 2018. Our work plan will be developed in coordination with your staff and will be modified where the audit objectives can be achieved in a manner less intrusive to your operations. One of Purvis, Gray and Company's goals is to perform as much audit work as possible during interim fieldwork. This allows us to better schedule our annual workload, but also minimizes the pressure on your staff to maintain timetables and meet deadlines after year-end. In addition, it permits the earliest possible identification and resolution of contentious or controversial accounting and auditing issues. Our preliminary plan will include the following: September/October 2017 (and Each Succeeding Year) • Prepare an engagement letter to be reviewed and signed by authorized City representatives. • Conduct an entrance conference with the City Manager and the City's Finance team to discuss the City's status on prior audit items, operations, audit assistance, and other pertinent items. We will discuss the effect of any new accounting or auditing standards on the current audit. Additional discussions will be held, as needed, to discuss the progress of the audit and work through any issues that may arise. The Partner-in-Charge will attend these conferences. • Perform certain initial audit and audit preparation procedures from our office(such as creating and organizing the audit engagement file; assessing and ensuring our independence and ability to serve as the City's auditor; downloading and reviewing City minutes, ordinances, resolutions, policies and procedures, and budgets; creating, updating,and reviewing permanent file documentation;developing or updating our understanding of the City and its environment; developing a preliminary audit strategy, including establishing areas in which test of controls will be performed; preparing time budgets;determine preliminary materiality limits, etc.) • Obtain, review, and update City financial policies and procedures, flowcharts, and other documentation to develop and update business process and internal control narratives and checklists for significant classes of transactions. We will meet with key finance personnel and department directors or their designees to confirm: (1)our understanding of the business process;(2)that our identification of the key internal controls over financial reporting is consistent with management's identification of such controls;and (3)that the key internal controls over financial reporting have been properly designed and implemented. We will perform tests of controls in areas where such tests may reduce risks and provide for a more efficient audit of the area. • Review the internal controls and compliance over the City's federal awards and state financial assistance. We will identify major programs/projects and related compliance requirements,and perform tests required by the Federal and State Single Audit Acts,when applicable. City of Ocoee—RFP No. 17-005 Auditing Services 41 G--AUDIT APPROACH Work Plan(Concluded) September/October 2017 (and Each Succeeding Year) (Concluded) • Perform a review of the City's information technology (IT) environment and IT general controls over the significant financial applications identified. Our IT Department personnel will assist our Audit Department personnel with developing and performing these procedures. • Perform preliminary analytical procedures and risk assessment procedures, and prepare preliminary audit programs. • Conduct an interim exit conference with the Finance Director and key Finance Department personnel to summarize results of interim procedures, discuss preliminary areas of concern to confirm our understanding or to receive additional information from management,and discuss year-end work to be performed. The Partner-in-Charge will attend this conference. September 2017 (and Each Succeeding Year) • Work with your Finance Department personnel to identify,obtain,and mail confirmation requests to financial institutions, federal and state agencies,and attorneys. • Perform Inventory observation procedures as deemed necessary February 2018 • Import the September 30,2017 trial balance and 2017 final budget into audit software after receiving it from the Finance Director, Map new funds and accounts and compare to draft financial statements. Resolve differences. Compare to client-prepared financial statements. Discuss presentation issues, if any, and make suggestions for management consideration. • Perform year-end fieldwork,including analytical review,tests of details,and compliance tests. Complete audit fieldwork by February 28 of each year. • Prepare (as required) a detailed review of the City's draft financial statements, including entity-wide conversion,fund level statements,statements of cash flows, budgetary statements,notes, MD&A,and statistical section. • Prepare and deliver our preliminary draft auditors'reports and governance letter,including findings,by March 10,2018. Receive and resolve comments from management. ■ Perform Purvis, Gray and Company in-house review and other wrap-up audit procedures, including financial condition benchmarking assessment,and independent(in-house) review. • Deliver final copies of the CAFR, independent auditors' reports on internal control and compliance after final exit conference by March 10,2018. • Conduct a final exit conference with the City's Finance Director and the City Manager to summarize results of the audit and review significant findings by March 20,2018. ■ Present the final financial statements and related reports to the City's Finance committee,City Commission,and Pension Boards,if applicable, in time for submission of the CAFR to the GFOA. • Prepare and certify the Data Collection Form for federal grants with the federal audit clearinghouse(if necessary). City of Ocoee—RFP No. 17-005 Auditing Services 42 G -AUDIT APPROACH Proposed Segmentation of the Engagement The City audit will be segmented along fund lines and by cross fund areas that are common to all funds. Cross fund areas will include: cash and investments, accounts payable, payroll/benefits, budgets, capital assets, debt, Single Audit, pensions, and utility billing. The Single Audit will be conducted across all department grant programs/projects, and all grant revenues, receivables, and unearned revenues and expenses will be a part of the Single Audit segment. Proper planning and communication is essential to an effective and efficient audit. Issues are identified, discussed, and resolved as early as possible. All members of the audit team and the firm are available to the City's management at all times throughout the process. Our audit approach utilizes substantive tests, compliance tests, tests of controls, and analytical procedures. The audit can be broken down into three distinct phases: •Internal Control Extensive Documentation and Interim Work Testing, Risk and Plannin Assessment, Ongoing Client b Transaction Testing Communication •Testing of Year-end During this Process Final Balances, Updating Fieldwork Internal Control, (No Surprises) Transaction Testing Wrap up, •Exit Conferences, Write-up Presentations, and Delivery Deadlines Level of Staff Estimated hours, by staffing level and segment, are as follows: Staffing Level Interim Final Wrap-up Total Partner 16 32 32 80 Managers 32 40 40 112 Supervisor 32 40 40 112 Senior/Staff as needed 32 40 30 102 Clerical 8 8 8 24 Total 120 160 150 430 City of Ocoee—RFP No. 17-005 Auditing Services 43 G -AUDIT APPROACH Approach to be Taken in Using Statistical Sampling in the Engagement Statistical sampling will be used on this engagement and will be coordinated with other audit procedures to achieve audit objectives in the most efficient manner possible. Statistical sampling will be used in relation to audit procedures for: • Tests of Controls • Tests of Compliance with Laws and Regulations • Substantive Tests of Transactions and Account Balances • Attribute Sampling All sampling will be performed in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States; Uniform Guidance; Chapter 10.550, Rules of the Auditor General;and State Department of Financial Services,State Projects Compliance Supplement. Analytical Procedures Analytical procedures will be used extensively on this engagement. Initial applications will be used in general planning to improve the firm's understanding of operations and to identify areas for increased attention. Analytical procedures will also be used to facilitate the development of the audit program. During the audit fieldwork, analytical procedures will be used as substantive tests to significantly reduce or eliminate certain tests of details. Analytical procedures will be used in the following and other audit areas: • Contract and Grant Revenues • Inventories • Payroll and Fringe Benefits • Other Expenditures • Debt and Debt Service Expenditures Approach to Auditing Internal Control Structure Auditing Standards requires auditors to obtain an understanding of internal control sufficient to assess the risk of material misstatement of the financial statements due to error or fraud, and to design the nature, timing, and extent of further audit procedures. We will perform audit procedures to obtain an understanding of the design and implementation of the City's key controls in each significant audit area. Understanding the key controls will include an extensive review and documentation of the City's control environment, risk assessment activities, information and communication systems, monitoring activities,and control activities. As part of understanding the control activities,we will identify the following: • Significant Classes of Transaction and Cycles-Some Examples of Common Areas for Cities Include: • Purchasing,Accounts Payable,and Cash Disbursements • Human Resources and Payroll • Utility Billing,Accounts Receivable, and Cash Receipts • Grants Expenditures, Billing,Accounts Receivable,and Cash Receipts i Other Areas with Significant Risks or Fraud Risks-For Example: • Unusual Transactions • Significant Estimates • Subsequent Events • Information Technology Risks City of Ocoee—RFP No. 17-005 Auditing Services 44 G-AUDIT APPROACH Approach to Auditing Internal Control Structure(Concluded) For significant classes of transactions and cycles, we will gain an understanding of the procedures over initiating, authorizing, recording, processing, reporting, and reconciling and will: • Request,obtain, and review available City policies and procedures,flowcharts,and other documentation. • Review City-provided documentation against practice aids developed by PPC and in-house. • Develop and update our business process and internal control narratives, flowcharts, checklists, and other documentation based on our review of City-provided documentation against our practice aids. • Meet with and interview key Financial Department personnel and department directors or staff of key offices and programs to further develop and update our understanding of the processes and controls to include: • Identify the Key Manual and Automated Controls •. Confirm with Management that the Key Controls have been Properly Identified • Evaluate Whether the Key Controls are Properly Designed and Implemented by Performing Audit Procedures, Including Observation, Inspection, Reperformance,and Confirmation to Obtain Audit Evidence that the Controls are Properly Designed and Implemented • Identify any Weaknesses in the Design or Implementation • Discuss any Weaknesses in Internal Control with Management to Confirm our Understanding or to Receive Additional Information or Identify Compensating Controls, if any • Consider Performing Tests of Controls (to Test the Operating Effectiveness of the Control Over the City's Fiscal Year)if Controls have been Properly Designed and Implemented For significant risks and fraud risks, we will identify the key controls, evaluate whether they have been properly designed and implemented, and design further audit procedures (tests of details)to specifically address those risks. For information technology risks, we will obtain an understanding of the extent to which information technology is used in the significant audit areas noted above and will identify the significant financial applications used. For the City's significant financial applications,we will obtain an understanding of the IT environment (including the significant financial applications' supporting technologies - operating systems, databases, network, etc.) and the IT General Control over these technologies, and evaluate the risks. Our procedures will be similar in nature to the procedures listed above "for significant classes of transactions", except that they will focus on risks related to the IT control environment, change management, user access, and backup and recovery, instead of the initiating, authorizing, recording, processing, reporting, and reconciling of transactions. Approach to be Taken in Determining Laws and Regulations that will be Subject to Audit Test Work For audits conducted in accordance with Government Auditing Standards, the auditor is required to test compliance with laws and regulations that would have a material effect on the City's financial statements. As such, we design our audit programs to ensure compliance with key laws and regulations such as: • Budgetary Appropriation Limits • Key Federal,State, or Local Laws • Significant Debt Covenants • Significant Contract Provisions • Relevant Compliance Requirements of • Use of Restricted Revenue Sources Major Programs Under the Single Audits City of Ocoee—RFP No. 17-005 Auditing Services 45 G -AUDIT APPROACH Extent of Computer Software to be Used in the Engagement Auditors will use laptops with Microsoft's Windows 7 operating system and Microsoft's Office 2013 Suite (Word, Excel, Outlook) and second monitors throughout the engagement. We will request access to the internet from the City's IT Department and work with them to determine whether wired or wireless is more suitable. Specialized audit software utilized in your engagement will be in the following areas: Paperless Workpapers SmartSync GASEWAREExcel Word, AccessFileAdobe on Server Paperless Audit Engagement Software System- CaseWare Multi-Users Working Papers and SmartSync — ImportTrial Balances Multi-Sites 4s) IDEA Fraud Data Analysis SoftwareTe ti g Analytics Computer-Assisted Audit Techniques(CAAT) Software-Case Ware's IDEA with Revenue/Expense SmartAnalyzer and Excel Analysis THOMSON REUTERS Research, Reference Material, Checklists, Audit Programs, Practice Aids PPC Checkpoint Tools Research and Audit Checklists, Worksheets, Programs, Letters-Thomson Reuters PPC Checkpoint Tools City of Ocoee—RFP No. 17-005 Auditing Services 46 G --AUDIT APPROACH Approach to Reviewing Information Systems •Identify key automated controls (e.g., application and IT-dependent manual controls), interfaces, and reports and other information generated from the City's information systems. Identify •Identify significant financial applications and information systems. •Develop (with the IT Auditor/Consultant assigned to the City's audit) audit procedures for the IT environment and IT general controls for the significant financial applications and their Develop supporting technologies (e.g., operating systems, databases, and networks). •Request, obtain, and review available policies and procedures, flowcharts, and other documentation. •Solicit information (using an in-house developed questionnaire)from the City's IT department Gather about the City's IT environment and IT general controls including controls over user access, Information change management, and backup and recovery. *Analyze information obtained and discuss with the City's key IT department personnel. *Analyze information obtained during audit procedures for the City's internal control systems. Analyze *Assess the City's IT control environment and IT general controls using audit procedures similar in nature to the procedures listed under Section, Approach to Auditing Internal Control Systems"for significant classes of transactions",except that these audit procedures will focus Assess on risks related to the IT control environment, change management, user access, and backup and recovery. •Develop and discuss preliminary comments, observations, and recommendations regarding the City's IT environment and general controls with the City's key IT department personnel. •Develop and discuss comments, observations, and recommendations with the City's Report personnel. _J • •Integrate the IT risk assessment with the overall financial risk assesment for the audit. •Identify areas to audit through the City's systems-vs-areas to audit around the City's systems Integrate and develop appropriate further audit procedures to do so. / City of Ocoee—RFP No. 17-005 Auditing Services 47 PRICE PROPOSAL FORM RFP#17-005 AUDITING SERVICES COMPANY NAME Purvis, Gray and Company, LLP A. ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED IN RFP #17-005 FOR FISCAL YEARS ENDING 2017, 2018, 2019: 2017 $ 37,000,00 2018 $ 37,000 .00 2019 $ 37,000.00 TOTAL $ 111,000. 00 B. ANNUAL PRICE PROPOSAL FOR SINGLE AUDIT FEE: 2017 $ 3,500 .00 2018 $ 3,500 .00 2019 $ 3,500 .00 TOTAL $ 10,500 . 00 TP1 1-865' u1ifinervices 25 48 1 C. ANNUAL PRICE PROPOSAL FOR ASSISTANCE AND/OR REVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT(CAFR), IF REQUIRED: 2017 $ 2,500 .00 2018 $ 2,500 .00 2019 $ 2,500 00 TOTAL $ 7,500 .00 (A renewal option for an additional two years may be negotiated for services provided in items A through C). 9- /3 -/7 Date Purvis, Gray and Company, LLP Company Name AD0041478 License Number Helen Y. Painter, CPA, Partner Authorized Officer(print) a, e - r AuthorizedCignature mu i irtr Services.'. - �.--. , 26 49 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) There are no pending lawsuits against Purvis, Gray and Company, nor has there been any audit related litigation withing the last 5 years. 13. ACKNOWLEDGMENT OF ADDENDA: Proposer acknowledges receipt of the following addenda: • No. 1 Dated August 30, 2017 No. 2 Dated September 7, 2017 No. Dated `ffPP17=b$' u i g-- ecce �..", 16 50 a 0(_-«>e floriji, EXHIBIT"G" RFP CONFLICT OF INTEREST DISCLOSURE FORM The award of this contract is subject to the provisions of Chapter 112, Florida Statutes. All Proposers must disclose within their Proposal: the name of any City of Ocoee employee, Mayor or City Commissioner, other City Official, or City Consultants, who owns assets or capital stock, directly or indirectly, in the Proposer's firm or any of its branches, or would directly or indirectly benefit by the profits or emoluments of this proposal. (Indirect ownership or benefit applies to any members of his or her immediate family.) Proposer 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, Proposer agrees to immediately notify the City in writing. The purpose of this disclosure form is to give the City the information needed to identify potential conflicts of interest for the City Commission, Evaluation Committee members, and other key City employees and consultants involved in the award of this contract. According to Chapter 112, Florida Statutes,the term "conflict of interest" "means a situation in which regard for a private interest tends to lead to disregard of a public duty or interest", and refers to situations in which financial or other personal considerations may adversely affect, or have the appearance of adversely affecting, an employee's professional judgment in exercising any City duty or responsibility in administration,management, instruction,research,or other professional activities. Please check one of the following statements and attach additional documentation if necessary: x To the best of our knowledge,the undersigned firm has no potential conflict of interest for this Proposal. The undersigned firm,by attachment to this form,submits information which may be a potential conflict of interest for this Proposal. Acknowledged by: Purvis,Gray and Company, LLP Firm Name Signature Helen Y. Painter, CPA, Partner Name and Title(Print or Type) Date - � Aui ing der lv ce 27 51 RFP#17-005 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. Purvis, Gray and Company, LLP 352.732.3872 COMPANY NAME TELEPHONE(INCLUDE AREA CODE) 352.732.0542 FAX (INCLUDE AREA CODE) H_elenp@purvisgray.com E-MAIL ADDRESS LO-1•11 '1 ^ IF REMITTANCE ADDRESS IS DIFFERENT AUT'HORI'ZE 1:IGNATURE(manual) FROM PURCHASE ORDER ADDRESS, Helen Y. Painter, CPA, Partner PLEASE INDICATE BELOW: NAME/TITLE(PLEASE PRINT) PO Box 141270 2347 SE 17th Street Gainesville, Florida 32614-1270 STREET ADDRESS Ocala, Florida 34471 CITY STATE ZIP 59-0548468 FEDERAL ID II Individual Corporation Partnership X Other(Specify) Sworn to and subscribed before me this day of ,20 17. Personally Known X _ or Produced Identification Notary Publi -State of Florida (Type of Identification) County of /Jj4 ��,�r signature of to .ry Public EXPI�'',�! `: AIYWiMk4810NiFF6f4782 if. ) RES. „b,17 2020 Printed,typed or stamped h&c Udwwll� Commissioned name of NotaryPublic �,,,• Banded tNu HOMY RFt' 1i-06S"�Cu'aiI"ingzSe'rv7= 28 52 Acc•RD. CERTIFICATE OF LIABILITY INSURANCE DATE M/DD/YYW) �--� 6/5/2015/201 7 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(les)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED,subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsement(s). PRODUCER CONTACT NAME: McGriff-Williams Insurance PHONE 352-371-7977 FAX 3501-A W. University Ave 4ALC,Nn,.Ext).• (As.kph.352_505-2083__- —_._—__------ Gainesville FL 32607 ADDRr E-MAILSs mwi@mcgriffwilliams.com INSURER(5)AFFORDING COVERAGE NAIC II INSURER Property and Casualty ;42579 INSURED PURVI-1 . INSURER B:Depositors Insurance 42587 Purvis Gray&Co., LLP and INSURER C QBE Specialty .. Purvis Gray Tech.Group LLC INSURER D. PO Box 141270- - Gainesville FL 32614 INSURERE: INSURER F: COVERAGES CERTIFICATE NUMBER: 1102391935 REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT,TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS. EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR: ADDL:SUBR - POLICY EFF ' POLICY EXP ----LTR TYPE OF INSURANCE INS)!.WVD POLICY NUMBER !IMM/DDIYYYY)l(MM/DDIYYYY)'.. LIMITS A X . COMMERCIAL GENERAL LIABILITY Y Y ACPBP005955521854 5/3112017 513112018 EACH OCCURRENCE $1,000,000 I ! I DAMAGE TO RENTED . CLAIMS-MADE X OCCUR I PREMISES(Ea occurrence) i 5300,000 MED EXP(Any one person) I$5,000 I PERSONAL 8 ADV INJURY I$1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE I$2,000,000 POLICY] I PECOT- I LOC PRODUCTS.-COMP/OP AG:, I$2,000,000 I --^', OTHER. '5 A AUTOMOBILE LIABILITY ACPBP005955521854 5/31/2017 5/31/2018 COMBINED SINGLE LIMIT $ (Ea acaoentl 1,000,000 ANY AUTO ) BODILY INJURY(Per person) $ •OWNED • r SCHEDULED I - -- AUTOS ONLY AUTOS BODILY INJURY(Per accident) S -,,HIRED ----,,, NON•OWNED PROPERTY DAMAGE AUTOS ONLY AUTOS ONLY (Per accident) $ A f UMBRELLA LIAB I OCCUR ACPCAP5945521854 L 5/31/2017 5/31/20181 EACH OCCURRENCE $2,000,000 EXCESS LIAR I CLAIMS-MADE I AGGREGATE $2,000,000 DED RETENTION S ! $ B WORKERS COMPENSATION I ACPWCD5955521854 1.5/31/2017 5/31/2018 'STATUTE ETH AND EMPLOYERS'LIABILITY Y/N ANY PROPRIETOR/PARTNER/EXECUTIVE N/A - E.L.EACH ACCIDENT $1,000,000 OFFICER/MEMBER EXCLUDED? (Mandatory In NHI I E.L.DISEASE-EA EMPLOYEE $1,000.000 If yes,describe under DoSCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $1,000,000 AEmployee Dishonesty Bond BDC7900387274 5/31/2017 5/31/2018 $500,000 Professional JCG01943-01 9/21/2016 9/21/2017 $2,000,000 DESCRIPTION OF OPERATIONS/LOCATIONS I VEHICLES (ACORD101,Additional Remarks Schedule,may be attached if more space is required) CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE Insured Copy THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE ©1988-2015 ACORD CORPORATION. All rights reserved. ACORD 25(2016/03) The ACORD name and logo are registered marks of ACORD 53 _ w ::41.1„.: ,Ill „T).,',I m`iii”" . rtt fit Y w, .. 'µ'am wy ar t amu. f n « f... ,,ilrilIiiii OCOEE �. � ., { � .cam y'.,`, v ..., ), ..„....z...,7,,„r r. St" _ - ' - 4-_,,,k. .-IiIP* RFP No. 17-005 ISli FINANCPROPOSALIAL AUDITTO SERVIPROVIDECES TO: THE CITY OF OCOEE, FLORIDA 0 C oeek PREPARED BY: florida MAULDIN & JENKINS, LLC Phone: 941-747-4483 I Fax: 941-747-6035 A U L D I N Wade P. Sansbury, CPA, Partner9ENKINS 1401 Manatee Avenue West, Suite 1200 Bradenton, Florida 34205 wsansbury@mjcpa.com www.mjcpa.com Direct: 941-741-2255 ELECTRONIC COPY September 19, 2017 I 2:00 PM EST AU DIN & ENKINS Table of Contents Tab 1 — Letter of Transmittal and Mandatory Criteria 2 Tab 2—Mauldin & Jenkins, LLC Qualifications 6 - Recent Governmental Experience - Local Office Client References - Staff Training Programs - Mauldin&Jenkins Commitment to the Governmental Sector - AICPA Quality Control Review Program - Management Advisory Services - Experience with Bond Issuances Tab 3 —Mauldin &Jenkins, LLC Personnel Qualifications 20 - Proposed Audit Staffing Plan - Resumes of Key Personnel to be Assigned to the City Engagement Tab 4—Audit Approach 30 - Mauldin&Jenkins, LLC Understanding of the Services to be Provided - Mauldin &Jenkins, LLC Audit Approach to Provide the Required Services - Extent of Statistical Sampling and Analytical Procedures to be Used on the Engagement - Utilization of Audit Software and/or Electronic Spreadsheets - Approach Used to Gain an Understanding of the City's Internal Control Structure Tab 5—Price Proposal 40 - Price Proposal Form - Important Notes to be Considered Tab 6— Required Forms 44 - Conflict of Interest Disclosure - Company Information and Signature Sheet - Litigation and Addenda Acknowledgement INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 1 MAULDIN & ENKINS TAB 1 TRANSMITTAL LETTER AND MANDATORY CRITERIA INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 2 lAULDIN & ENKINS Transmittal Letter Joyce Tolbert, CPPB, Purchasing Agent City of Ocoee Finance Department/Purchasing, Second Floor 150 North Lakeshore Drive Ocoee, Florida 34761 Ladies and Gentlemen: On behalf of Mauldin &Jenkins,we are excited about this opportunity to serve the City of Ocoee, Florida (the "City") in order to help meet the continuing challenges you face. We appreciate the opportunity to propose on providing audit services to the City, and we are pleased to submit a qualifications package to provide annual financial and compliance auditing services for the three (3) fiscal years ending September 30, 2017— 2019, with the option to renew for two additional one (1) year terms upon approval by the City. We have read the Request for Proposal (RFP) and fully understand its intent and contents. We understand the time frame forperformance of the annual financial audits as stipulated by the City, and agree to provide the services described in the proposal within the scheduled timeframe. We will conduct preliminary and final fieldwork and will issue all of the deliverables and reports substantially prior to the required due dates. As professionals serving the public sector, Mauldin &Jenkins is qualified to serve the City. We believe that Mauldin &Jenkins is the leader in auditing state and local governments in the Southeast. This leadership was achieved by recognizing that we are an important part of our client's success, with our objective being to ensure that accurate information is reported to the Commission, management, and its citizens. Given the complexities of the City's financial operations and the ongoing significant changes in accounting standards, we feel that it is very important that you select an auditing firm that is focused and experienced in the governmental industry. We differentiate ourselves from our peers in the following ways: ■ Experience with Governments — Including Municipalities. Our Firm is a large regional firm that has made the governmental sector a primary industry focus. We have served the audit and compliance needs of numerous governmental entities over the years, and remain committed to serving this sector. Mauldin &Jenkins presently provides over 70,000 hours of service to over 300 governmental units in the Southeast on an annual basis—this includes 83 municipalities and 100 governmental entities who receive the GFOA Certificate of Achievement in Financial Reporting. Such experience results in the utilization of over 80 full-time equivalent professionals. Consequently, our Mauldin & Jenkins professionals are thoroughly versed in the City's unique and complex functions, and we consistently provide the highest quality of service to our clients. n Location of the Local Office. The local office that will serve the City is located in Bradenton, Florida. The Bradenton office has 7 partners, 7 managers, 5 Supervisors/Seniors, and 14 other staff members. The Partner and Director/Manager assigned to serve the City spend 100% of their time serving local governments. Additionally, the Bradenton office employs 15 professionals with current experience providing services to governmental entities. • Experienced personnel. Personnel proposed for this engagement have numerous years of professional experience in the governmental sector and are dedicated to serving this industry. We make every effort to retain experienced and qualified staff which will assist in providing staff continuity. The quality of the proposed engagement team is the clearest evidence of our commitment to serve you. imummimmomiw INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 3 • NAULDIN ENKINS ■ Experience with Client Transitions. Over the past 17 years, we have experienced approximately 300 transitions as the new auditors of governmental entities. Our team offers a great deal of experience with serving new clients, and providing a smooth transition during the change in auditors. • Staff Continuity. Our staff retention rates are considered to be among the best in the profession (and much better than national and other regional firms).This fact,coupled with our vast array of government clients, results in a staff pool highly experienced with governmental entities with the definite capacity to serve the City. We are able to not only provide consistency with the partner and manager on our engagement teams, but seniors as well. We also have enough resources at the partner, manager, and senior levels to provide for periodic rotations as requested by our clients. ■ Education. Mauldin & Jenkins' clients have the opportunity to register and receive approximately sixteen(16) hours of continuing education on an annual basis,free of charge. We take our experience in serving governments, and choose timely and relevant topics to provide ongoing education to our clients. Sessions are limited to clients only. ■ Responsiveness. We pride ourselves in responding to the needs of our clients and meeting their deadlines. This responsiveness is not only the ability to meet specified audit deadlines, but also the ability to respond to other requests. Our ability to be responsive is enhanced by the open communications and good working relationship we have with our clients. Our resources provide for the flexibility to meet your needs and to perform our services in an efficient and effective manner. • Organized to Specifically Meet Your Needs. Our partners, managers, and seniors in the Firm's Governmental Practice Division spend 100%of their time serving governments. By structuring the Firm's Governmental Practice Division in such a manner,we are able to create efficiencies in the audit process which typically result in our total hours being significantly less than most other firms. • Nationally Recognized. Along with being consistently ranked in the Top 100 by Accounting Today as well as Inside Public Accounting trade associations and magazines as one (1) of the largest certified public accounting firms in the country, Firm personnel have held numerous professional leadership positions. This includes Chair of the Board of Directors of the American Institute of Certified Public Accountants (AICPA) (Tommye Barie); members of the AICPA Government Quality Institute; chairman of the AICPA Single Audit Task Force; and President of the Florida Institute of Certified Public Accountants. We use this experience to perform more effective and efficient audits for our clients. The City of Ocoee would be an important client to Mauldin &Jenkins and one that we would be proud to serve. Again, on behalf of Mauldin &Jenkins, we are excited about this opportunity to work with the City in order to help meet the continuing challenges you face. This proposal represents a firm offer for 90 days from the date of the proposal. As a member of Mauldin & Jenkins, Wade Sansbury is authorized to bind, and make representations for the Firm, and he will be the ultimate party responsible for the quality of the report and working papers. Mauldin &Jenkins, LLC federal taxpayer identification number is 58-0692043. We welcome the opportunity to meet with management and governing board officials to present our proposal and our qualifications. Please contact us at (941) 747-4483, 1401 Manatee Avenue West, Suite 1200, Bradenton, FL 34205. Again, on behalf of Mauldin &Jenkins,thank you for the opportunity to serve. Sincerely, MAULDIN &JENKINS, LLC a) I --(>1124---- Wade Sansbury,CPA Partner INDUSTRY EXPERTISE PROACTIVE SERVICE PROVEN RESULTS SINCE 1918 4 AULDIN • & ENIINS • Mandatory Criteria As required by the request for proposal, Mauldin & Jenkins, LLC affirms that we are properly licensed to practice public accounting in the State of Florida and that all supervisory personnel assigned to the Audit of the City of Ocoee, Florida are CPA's. Included below are applicable licenses for Mauldin & Jenkins, LLC and Wade Sansbury (Engagement Partner). RICK SCOTT,GOVERNOR KEN LAWSON.SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY x, LICENSE NUMBER AD0007585 The ACCOUNTANCY CORPORATION Named below IS LICENSED Under the provisions of Chapter 473 FS. •3 �� Expiration date. DEC 31,2017 MAULDIN&JENKINS, CERTIFIED PUBLIC ACCOUNTANTS, LLC NN. ,••l ; _' MAULDIN&JENKINS '� ' '� +. 1i„�' '-. z. 1301 6TH AVE W SUITE 600 � r' �'' BRADENTON FL 34205-7440 jr, Oy .d ' NNti' \` �.ti• • h: ISSUED 12/08/2015 DISPLAY AS REQUIRED BY LAW SEO# L1512080001065 RICK SCOTT,GOVERNOR KEN LAWSON,SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY 041.1421-14:01.1.1.-1- AC-45811 !I442I-1-ILIia�AC45811 The CERTIFIED PUBLIC ACCOUNTANT Named below IS LICENSED " d Under the provisions of Chapter 473 FS. Expiration date: DEC 31,2017 gt' tom*' I . _ • 0 SANSBURY,WADE PATTEN ° 627 147TH CT NE •�:, x � BRADENTON FL 34212 :r E' . , ISSUED 10/21/2015 DISPLAY AS REQUIRED BY LAW SEO# L1510210001755 INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 5 AULDIN & ENKINS TAB 2 MAULDIN & JENKINS, LLC QUALIFICATIONS 1. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 6 AULDIN & ENKINS Recent Governmental Experience Mauldin &Jenkins was incorporated in 1918,and has been actively engaged in governmental accounting and auditing since its inception. The Firm is considered to be one of the largest firms in the country with 45 partners and approximately 260 professional staff, serving clients throughout the Southeastern United States. Mauldin and Jenkins is considered to be a large regional firm. Mauldin and Jenkins has offices located in Bradenton, LID Florida; Atlanta, Macon and Albany, Georgia; DE Chattanooga, Tennessee; and Birmingham, Alabama. cn.ne"{oga NV We have a practice structure with the scale to serve VA governmental clients well due to the efficient allocation '""'°Rain ' of resources in our geographic area. — NC , i AR As noted in our transmittal letter, Mauldin & Jenkins • • sc„ mum. provides and supervises over 70,000 hours of service ats P.A,_.. ' !Amcor, to governmental entities on an annual basis. The Firm's governmental practice is the second largest ' of 1 niche in the Firm and is approximately 25% of the saN,.1a Firm's total practice. However,size and resources alone -; t Bradenton are not the most meaningful measure of success; in the end, our clients remain the best judges of Mauldin & Jenkins' value. Other key information relative to the size and experience of Mauldin &Jenkins is as follows: • 300,000-approx. total hours of service provided annually to clients of the Firm • 70,000-approx. total hours of service provided annually to governmental clients of the Firm • 32%- percentage of governmental practice as compared to Firm's attestation practice • 25%- percentage of governmental practice as compared to Firm's overall practice • 300- approx. number of governmental entities served in the past three (3) years • 260-total number of Firm personnel • 100-total clients served who obtain the GFOA Certificate • 42-total clients with publicly issued debts in excess of$50 million • 45 -total number of Firm partners • 11 -total number of governmental partners and directors • 11-total number of governmental managers • 80-total number of professionals with current governmental experience A list of current Florida clients served by the Bradenton office in the past three (3)years is noted below. We have also provided detailed reference information on 7 municipalities as requested by the RFP in the "Client References" section immediately following this section of our proposal. If the City would like additional reference information for any of the clients listed on the following pages, Mauldin &Jenkins would be happy to provide such information upon request. Nminmmmimmmomm INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 7 AULDIN & ENKINS Cities Other Governmental Entities 1) Arcadia 17) Bayshore Gardens Park& Recreation District 2) Bradenton 18) Bradenton Downtown Development Auth. 3) Cooper City 19) Central Community Redevelopment Agency 4) Crystal River 20) City of North Port, Fl. - Firefighters' Pension 5) Ft. Myers Beach 21) Imagine School at North Port 6) Haines City 22) Imagine School at Palmer Ranch 7) Islamorada 23) Imagine-East Manatee County, LLC 8) Lake Placid 24) Imagine-Manatee County, LLC 9) Long Boat Key 25) Islamorada,Village of Islands, Florida 10) Marco Island 26) Just for Girls Academy 11) Naples 27) Long Boat Key Pension Plans 12) North Port 28) Manatee County Mosquito Control Dist 13) Orange Park 29) Manatee Technical Institute 14) Palmetto 30) Northwest FL State College Collegiate High School 15) Pensacola 31) Northwest Florida State College Foundation 16) Plant City 32) Ocean Highway and Port Auth. of Nassau County 33) Peace River/Manasota Reg Water Supply Auth 34) South Florida Regional Trans. Authority 35) Student Leadership Academy of Venice • INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 8 • AULDIN & ENKINS Perhaps the greatest indicator of our reliability as a professional service provider to state and local governments is our list of governmental clients. Cities. Cities we have audited or are in the process of serving within the past three (3)years are: 1) Arcadia 24) Braselton 47) Johns Creek 70) Suwanee 2) Bradenton 25) Brookhaven 48) Kennesaw 71) Tifton 3) Cooper City 26) Canton 49) Lawrenceville 72) Toccoa 4) Crystal River 27) Cedartown 50) Leesburg 73) Tybee Island 5) Ft.Myers Beach 28) Chamblee 51) Lilburn 74) Union City 6) Haines City 29) Chattahoochee Hills 52) Milledgeville 75) Valdosta 7) Islamorada 30) Clarkston 53) Milton 76) Villa Rica 8) Lake Placid 31) Cochran 54) Monroe 77) Selma 9) Long Boat Key 32) College Park 55) Morrow 78) Aiken 10) Marco Island 33) Conyers 56) Peachtree City 79) Beaufort 11) Naples 34) Cordele 57) Peachtree Corners 80) Charleston 12) North Port 35) Covington 58) Perry 81) Summerville 13) Orange Park 36) Decatur 59) Powder Springs 82) Bristol 14) Palmetto 37) Doraville 60) Quitman 83) Crossville 15) Pensacola 38) Duluth 61) Riverdale 16) Plant City 39) Dunwoody 62) Rockmart 17) Albany 40) Fairburn 63) Rome 18) Alpharetta 41) Fayetteville 64) Roswell 19) Americus 42) Forest Park 65) Sandy Springs 20) Austell 43) Grantville 66) Sharpsburg 21) Baldwin 44) Griffin 67) Social Circle 22) Ball Ground 45) Hinesville 68) St.Marys 23) Blakely 46) Jefferson 69) Stockbridge Counties. Counties we have audited or are in the process of serving within the past three (3)years are: 1) Athens-Clarke 14) Henry 27) Rockdale 40) Laurens 2) Augusta-Richmond 15) Jeff Davis 28) Spalding 41) Oconee 3) Barrow 16) Jones 29) Stephens 42) Hamilton 4) Cherokee 17) Liberty 30) Taylor 5) Clayton 18) Lincoln 31) Toombs 6) Colquitt 19) Lumpkin 32) Union 7) Columbia 20) Macon 33) Walton 8) Crisp 21) Macon-Bibb 34) Orange 9) DeKalb 22) McIntosh 35) Beaufort 10) Dougherty 23) Mitchell 36) Colleton 11) Floyd 24) Monroe 37) Darlington 12) Forsyth 25) Paulding 38) Edgefield 13) Gwinnett 26) Peach 39) Lancaster INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 9 MAULDIN & ENKINS School Systems. Boards of Education we have served within the past three (3)years are: 1) School Board of Highlands County 26) Fayette County Board of Education 2) School Board of Manatee County 27) Forsyth County Board of Education 3) School District of Lee County 28) Fulton County Board of Education 4) Atlanta Independent School System 29) Glynn County Board of Education 5) Baker County Board of Education 30) Gwinnett County Board of Education 6) Bartow County Board of Education 31) Hancock County Board of Education 7) Bibb County Board of Education 32) Henry County Board of Education 8) Bleckley County Board of Education 33) Marion County Board of Education 9) Brooks County Board of Education 34) Oconee County Board of Education 10) Butts County Board of Education 35) Paulding County Board of Education 11) Camden County Board of Education 36) Peach County Board of Education 12) Carroll County Board of Education 37) Polk County Board of Education 13) Cherokee County School District 38) Putnam County Board of Education 14) City of Buford Board of Education 39) Rockdale County Board of Education 15) City of Carrollton Board of Education 40) Thomas County Board of Education 16) City of Cartersville Board of Education 41) Troup County Board of Education 17) City of Decatur Board of Education 42) Twiggs County Board of Education 18) City of Gainesville Board of Education 43) Walton County Board of Education 19) City of Jefferson Board of Education 44) Ware County Board of Education 20) City of Marietta Board of Education 45) City of Bristol Board of Education 21) City of Rome Board of Education 46) Hamilton County Department of Education 22) Clay County Board of Education 23) Clayton County Board of Education 24) Cobb County Board of Education 25) Douglas County Board of Education State Governmental Entities. States have many entities as part of financial reporting:agencies,departments, university foundations, and other component units that are audited by an independent public accounting firm. Please see the following for a listing of State governmental entities we have audited in the past three (3)years: 1) Georgia Building Authority 21) Georgia Southern University Athletic Foundation 2) Georgia Department of Community Health 22) Georgia Southern University Foundation 3) Georgia Education Authority 23) Georgia State University Athletic Association 4) Georgia Environmental Finance Authority 24) Georgia State University Foundation 5) Georgia Higher Education Assistance Corp. 25) Kennesaw State University Athletic Association 6) Georgia Higher Education Facilities Auth. 26) Kennesaw State University Athletic Department 7) Georgia Lottery Corporation 27) Kennesaw State University Foundation 8) Georgia Ports Authority 28) Kennesaw State University Research Foundation 9) Georgia State Financing&Investment Commission 29) Medical College of Georgia Foundation 10) Georgia Student Finance Authority 30) New College of Florida 11) Georgia Student Finance Commission 31) Northwest Florida College Foundation 12) Georgia Superior Court Clerks'Coop.Authority 32) Polytechnic Foundation of Kennesaw State Univ. 13) Georgia State Road and Tollway Authority 33) Southern Polytechnic Applied Research Foundation 14) Stone Mountain Memorial Association 34) State College of Florida Foundation 15) Abraham Baldwin Agricultural College Foundation 35) State College of Florida Sarasota-Manatee,Inc. 16) College of Coastal Georgia Foundation 36) University of Chattanooga Foundation 17) Georgia Business Success Center 37) University of North Georgia Real Estate Foundation 18) Georgia College&State University Foundation 38) University of North Georgia Foundation 19) Georgia Highlands College Foundation 39) University System of Georgia Foundation 20) Georgia Military College Foundation 40) University of West Georgia Athletic Foundation 41) University of West Georgia Foundation INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 10 &1AULDIN ENKINS Other Governments. Other governmental entities we have audited within the past three (3)years are: 1) Academy for Classical Education(ACE) 68) Gwinnett County Water and Sewerage Auth. 2) Albany-Doughertylnner City Auth. 69) Gwinnett Online Campus 3) Atlanta Development Auth. 70) Hamilton Co.Water&Wastewater Treatment Auth. 4) Atlanta Economic Renaissance Corporation 71) Hamilton County Election Commission 5) Atlanta Heights Charter Academy 72) Heart of Georgia Altamaha Regional Commission 6) Atlanta Housing Opportunity 73) Henry County Water Authority 7) Austell Natural Gas System 74) Historic Roswell Convention&Visitors Bureau 8) Barrow County Water&Sewer Authority 75) Housing Authority of Clayton County 9) Bartram Trail Regional Library 76) Houston County Library System 10) Bayshore Gardens Park&Recreation District 77) Imagine School at North Port 11) Birmingham-Jefferson County TransitAuth. 78) Imagine School at Palmer Ranch 12) Bradenton Downtown Development Auth. 79) Imagine-East Manatee County,LLC 13) Brighten Academy 80) Imagine-Manatee County,LLC 14) Bristol Joint Sewer System 81) Islamorada,Village of Islands,Florida 15) Bristol Public Library 82) Ivy Preparatory Academy at Gwinnett 16) Catawba Water River Supply Project 83) Ivy Preparatory Academy for Girls 17) Central Community Redevelopment Agency 84) Ivy Preparatory Young Men's Leadership Academy 18) Central Midlands Regional Transit Auth. 85) Jefferson Co.Economic and Industrial Dev Auth. 19) Central Savannah River Area Regional Comm. 86) Just for Girls Academy 20) Charleston Water System 87) Keep Peachtree City Beautiful Commission 21) Chatsworth Water Works Commission 88) Kendezi School 22) Chattahoochee River 911 Auth. 89) Kennesaw State University AthleticDepartment 23) Chattanooga Area Reg.Transportation Auth. 90) KIPP Metro Atlanta Collaborative 24) Chattanooga Area Regional Council ofGovts. 91) KIPP Opportunity Fund 25) Cherokee Charter Academy 92) KIPP South Fulton Academy 26) Cherokee County Airport Auth. 93) Lowcountry Regional Transit Authority 27) City of Albany-Chehaw Park Auth. 94) Lumpkin County Hospital Auth. 28) City of Albany-Water,Gas&Light Comm. 95) Lumpkin County Water&Sewerage Auth. 29) City of East Point Retirement Plan 96) Macon Water Authority 30) City of North Port,Fl.-Firefighters'Pension 97) Macon-Bibb County Land Bank Authority 31) City of Sandy Springs Development Auth. 98) Manatee County Mosquito Control Dist 32) Classic Center Auth.of Clarke County 99) Manatee Technical Institute 33) Clayton Co.Pension Fund 100) MARTA/ATU Local 732 Employees Retirement 34) Clayton County Water&Sewer Authority 101) McIntosh Trail Community Service Board 35) Cobb County-Marietta Water Authority 102) McPherson Implementing Local Redev.Auth. 36) Cobb County-Marietta Water Auth.Pension 103) McPherson Planning Local Redevelopment Auth. 37) Columbia County Board of Health 104) Middle Georgia Community Service Board 38) Convention and Visitors Bureau of Dunwoody 105) Milledgeville-Baldwin County Dev.Auth. 39) Coweta Charter Academy 106) Mount Pleasant Waterworks 40) Crisp County-Cordele Industrial Development 107) NE Corridor,LLC 41) Crisp County Power Commission 108) Newton County Water&Sewerage Auth. 42) DeKalb County Public Library 109) North Fulton Regional Radio Auth. 43) Dev.Auth.ofCity ofJeffersonviIle&TwiggsCo. 110) Northeast Georgia Regional Commission 44) Development Auth.of Cherokee County 111) Northwest Florida State College-Collegiate High School 45) Development Auth.of City of Roswell,GA 112) Northwest Florida State College Foundation 46) Development Auth.of Lumpkin County 113) Ocean Highway and Port Auth.of Nassau County 47) Development Auth.of Peachtree City 114) Oconee Center Community Service Board 48) Downtown Atlanta Revitalization 115) Pataula Charter Academy 49) Eatonton-Putnam Water&Sewer Authority 116) Peace River/Manasota Reg Water Supply Auth. 50) Electric Power Board of Chattanooga 117) Peachtree City Convention&Visitor's Bureau 51) Forsyth County Public Library 118) Peachtree City Water&Sewerage Auth. 52) Friends of Bulloch 119) Phoenix Center Community Service Board 53) Georgia Charter Educational Foundation 120) Phoenix Center Community Service Board 54) Georgia Charter Educational Foundation 121) Provost Academy Georgia 55) Georgia Online Academy 122) Public Bldg.Auth.of Knox Co.&City of Knoxville 56) Georgia Ports Auth.DB&OPEB Plan 123) Riverdale Downtown Development Auth. 57) Georgia Ports Auth.Defined Contribution Plan 124) River's Edge Community Service Board 58) Griffin Spalding County Land Bank Auth. 125) Sandy Springs Hospitality Board 59) Greenwood Commissioners of Public Works 126) Sarasota School of Arts&Sciences 60) Gwinnett Civic/Cultural Center Operations 127) Southeast Tennessee Development District 61) Gwinnett Convention and Visitors Bureau 128) SOWEGA Council on Aging 62) Gwinnett County Airport Auth. 129) State College of Florida-Collegiate High School 63) Gwinnett County BOECharterSchools 130) Student Leadership Academy of Venice 64) Gwinnett County Development Auth. 131) Toccoa-Stephens County Public Library 65) Gwinnett County Public Facilities Auth. 132) Town Center Area Community Imp.District 66) Gwinnett County Public Library 133) Troup County College&Career Academy 67) Gwinnett County Recreation Auth. 134) Walton County Water&Sewerage Auth. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 11 AULDIN & ENKINS CAFR Certificates of Achievement& Excellence Mauldin & Jenkins has served approximately 300 governments in the tr past several years, and 100 governmental units who obtain the GFOA's 4 Certificate of Achievement for Excellence in Financial Reporting(and, or S the ASBO's Certificate of Excellence in Financial Reporting). r`(�,,,� .°•' 0 Mauldin &Jenkins'clients have never failed to obtain the Certificate! Mauldin &Jenkins is batting 1000%. Every CAFR submitted has received the award. The following are current clients: Cities: Counties: 1) Ai ken,SC 28) Hinesville 54) Athens-Clarke County 2) Albany 29) John's Creek 55) Augusta-Richmond Co. 3) Alpharetta 30) Kennesaw 56) Barrow County 4) Americus 31) Kingsland 57) Beaufort County,SC 5) Austell 32) Marco Island,FL 58) Cherokee County 6) Ball Ground 33) Longboat Key,FL 59) Clayton County 7) Beaufort,SC 34) Milledgeville 60) Colleton County,SC 8) Bradenton,FL 35) Milton 61) Columbia County 9) Bristol,TN 36) Monroe 62) Dekalb County 10) Brookhaven 37) Morrow 63) Floyd County 11) Brunswick 38) Naples,FL 64) Forsyth County 12) Chamblee 39) New Bern,NC 65) Gwinnett County 13) Charleston,SC 40) North Port,FL 66) Hamilton County,TN 14) Chamblee 41) Peachtree City 67) Henry County 15) College Park 42) Pensacola,FL 68) Lancaster County,SC 16) Conyers 43) Perry 69) Macon-Bibb County 17) Cooper City,FL 44) Pinecrest,FL 70) Oconee County,SC 18) Covington 45) Riverdale 71) Orange County,NC 19) Decatur 46) Rockmart 72) Paulding County 20) Douglasville 47) Rome 73) Rockdale County 21) Dunwoody 48) Roswell 74) Spalding County 22) Fayetteville 49) Sandy Springs 75) Walton County 23) Fairburn 50) Suwanee 24) Forest Park 51) Tuscaloosa,AL State Governmental Entities: 25) Griffin 52) Union City 76) Ga.Environ.Fin.Auth.(GEFA) 26) Haines City,FL 53) Valdosta 77) Ga.Ports Authority 27) Hapeville Other Governmental Entities: Boards of Education: 78) Central Savannah River Area Regional Comm. 90) Atlanta Public Schools 79) Charleston Water System 91) Bibb County Schools 80) Clayton County Water Auth. 92) Cartersville City Schools 81) Cobb County-Marietta Water Authority 93) Clayton County Schools 82) Greenwood Commissioners of Public Works 94) Cobb County Schools 83) Henry County Water Auth. 95) Fayette County Schools 84) Lowcountry Regional Transportation Authority 96) Fulton County Schools 85) Macon Water Authority 97) Gwinnett County Schools 86) Mount Pleasant Waterworks 98) Lee County School District 87) Public Building Authority of Knox County and KnoxviII, 99) Manatee County School District 88) South Florida Transportation Authority 100) Marietta City Schools 89) Tampa Bay Water Authority Client Testimony on Results of 1st Attempt. "We received the Certificate of Achievement from GFOA this week. This was a team effort and I want to share with you how much I appreciate you and the rest of the staff from Mauldin&Jenkins. You have an excellent team and should be very proud of them. I look forward to continuing our relationship in the future." Tim Schroer,Augusta-Richmond Co. (GA) Consolidated Government, Deputy Director of Finance Aiimmisminer INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 12 MAULD.IN & ENKINS Local Office Client References 1) City of Pensacola, Florida General Information City government with a population of approximately 52,000. City has assets of approximately $605 million and annual revenues of approximately$165 million. The City provides numerous services including: natural gas service, solid waste collection and disposal, airport operations, port operations, public safety, parks and recreation, community development, and other customary services. Scope &Type of Financial audits and compliance audits in accordance with the Uniform Engagement Guidance and the Florida State Single Audit requirements. Maintenance of the GFOA Certificate. Dates September 30, 2013 through present Partner/ Manager Wade Sansbury/Trey Scott Contact Information Ms. Laura Picklap- (850) 435-1822-- Fax (850)-435-1611 Ipicklap@cityofpensacola.com 2) City of North Port, Florida General Information City government with a population of approximately 60,000. City has assets of approximately $507 million and annual revenues of approximately$95 million. The City provides numerous services including: water&sewer, solid waste, and other customary services. Scope&Type of Financial audits and compliance audits in accordance with the Uniform Engagement Guidance. Preparation of CAFR and Certificate of Achievement awarded by GFOA. Dates September 30, 2013 through present Partner/ Manager Wade Sansbury/ Daniel Anderson Contact Information Mr. Peter Lear, Finance Director- (941)429-7119- Fax(941)-429-7195 plear@cityofnorthport.com 3) City of Cooper City, Florida General Information City government with a population of approximately 34,000. City has assets of approximately$128 million and annual revenues of approximately $52 million. The City provides numerous customary services including: water, sewer, stormwater, public safety, and parks and recreation among others. Scope&Type of Financial audits and compliance audits in accordance with the Uniform Engagement Guidance. Preparation of CAFR and the maintenance of the GFOA Certificate. Dates September 30, 2016 through present Partner/ Manager Wade Sansbury/Trey Scott and Daniel Anderson Contact Information Horacio Montes de Oca - (954) 434-4300—hmontes@coopercityfl.org INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 13 AULDIN & ENK.INS • 4) City of Naples, Florida General Information City government with a population of approximately 21,000. City has assets of approximately $304 million and annual revenues of approximately$86 million. The City provides numerous services including: water & sewer, solid waste, stormwater, public safety, parks and recreation, community development, and other customary services. Scope&Type of Financial audits and compliance audits in accordance with Uniform Engagement Guidance (Single Audits). Preparation of CAFR and Certificate of Achievement awarded by GFOA. Dates September 30, 2006 through present Partner/ Manager Wade Sansbury/ Daniel Anderson Contact Information Ms. Ann Marie Ricardi, Finance Director- (239) 213-1820- aricardi@naplesgov.com 5) City of Marco Island, Florida General Information City government with a population of approximately 16,700. City has assets of approximately $412 million and annual revenues of approximately $63 million. The City provides numerous services including:water, sewer, solid waste collection and disposal, public safety, parks and recreation, community development, and other customary services. Scope &Type of Financial audits and compliance audits in accordance with Uniform Engagement Guidance. Preparation of CAFR and the maintenance of the GFOA Certificate. Dates September 30, 2013 through present Partner/ Manager Wade Sansbury/ Daniel Anderson Contact Information Guillermo Polanco, Finance Director- (239) 389-5016- gpolanco@cityofmarcoisland.com Staff Training Programs All members of the audit staff have significant training in auditing of local governments. Each staff member with five years or less experience attend, at a minimum, the following three to five day training courses: (1) Auditwatch—this training is an integrated development curriculum designed toward promoting professional growth for auditing staff members, (2) Mauldin & Jenkins LEAP (Learning, Education, Application, Performance) Conference — annual in house training on a variety of auditing topics which includes governmental auditing and accounting, and (3) Mauldin & Jenkins Governmental Conference — annual in house training which covers the current GASB pronouncements, governmental audit methodology, common reporting deficiencies for governmental entities, single audit and GASB updates, and other relevant topics to the governmental accounting arena. All professionals who would serve the City would exceed the minimum continuing education requirements as promulgated by the relevant standards. INDUSTRY EXPERTISE PROACTIVE SERVICE PROVEN RESULTS SINCE 1918 14 &1AULDIN ENKINS Additionally, we provide free quarterly continuing education for all of our governmental clients. Each year, we pick a couple of significant topics (including GASB Updates) tailored to be of interest to governmental entities, and offer the sessions to only our governmental clients. We normally see approximately 50 people each year. We obtain the input and services of experienced outside speakers along with providing the instruction utilizing our in-house professionals. ����`�� We produce newsletters tailored to meet the needs of governments. The �w newsletters have addressed a variety of subjects and are intended to be ' • timely in their subject matter. The newsletters are authored by Mauldin & =% Jenkins partners and managers, and are not purchased from an outside agency. Mauldin & Jenkins, LLC Commitment to the Governmental Sector Serving Governments For Over 95 Years Mauldin &Jenkins' commitment to government began when our Firm was established in 1918. Since then, we have viewed service to governments as significant to the overall success of the Firm. Today, the governmental sector is an industry that has been specifically identified for our continued growth in professional services. Accordingly, all professionals,from entry-level accountants to partners(who select the governmental sector as their focus) are trained to understand the issues and meet the needs of state and local governmental entities. Mauldin &Jenkins employs 22 partners, directors and managers who dedicate 100% of their time serving government clients. We also have numerous additional professionals with current experience in providing services to governmental entities — many of whom spend their time exclusively on government clients. Mauldin &Jenkins' dedicated professionals can bring a comprehensive understanding of the issues that face government entities as well as "bench strength" at all levels, allowing us to respond swiftly and effectively to your evolving needs. The goal of our government practice is to help governments improve their financial processes and strategies so that they can in turn achieve their goal of improving the lives of their citizens. This shared commitment to the goals of our clients has resulted in a significant government clientele. As noted in our transmittal letter, we currently serve approximately 300 governments in the Southeast. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 15 1A U L D I i &', EN1KINS AICPA Quality Control Review Program In the mid 70s,the Private Companies Practice Section (PCPS)was founded by the American Institute of CPAs (AICPA) to establish a voluntary quality assurance program for CPA firms. There are requirements for membership in the section, which include mandatory continuing education for each member of the professional staff and a key element is a tri-annual independent review of a firm's quality control system in its practice of public accounting. Mauldin&Jenkins, LLC has been a member of the section from its inception. t at .. The peer review aspect has evolved from being voluntary to mandatory and Mauldin & Jenkins is in full compliance with the requirements of having a tri-annual review. In the peer reviewer's latest report dated October 3, 2014, our reviewing firm gave a rating of"pass" which is the highest form of assurance they can render on the system of quality control for our accounting and audit practice. A copy of the report on our most recent external quality control review is provided on the next page. The quality control review included a review of specific government engagements. No letter of comment was received as a result of this review. We are quite proud to be one of the few Southeast based firms to have undergone this review and to have received such an excellent opinion from a large reputable national firm. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 16 1AULDIN & ENKINS aftmLarsortAten LIP 20 East Thomas Road,Suite 0 Ok 230Phoenx,AZ 95012.3111 CliftonLarsonAllen @32.266-2<a9Efax 602-2662907 CLAcor ectcorn System Review Report To the Partners of Mauldin&Jenkins,LLC and the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Mauldin & Jenkins, LLC (the firm) applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May 31, 2014. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the fimi's compliance therewith based on our review. The nature, objectives, scope. limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.orglprsunmmary. As required by the standards, engagements selected for review included (engagements performed under Government Auditing Standards; audits of employee benefit plans, audits performed under FDICIA, and examinations of service organizations [Service Organizations Control (SOC) 1 engagements].) In our opinion, the system of quality control for the accounting and auditing practice of Mauldin & Jenkins, LLC applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended May 31, 2014, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass,pass with defrciency(ies)or fail. Mauldin &Jenkins,LLC has received)a peer review rating of pass. CliftonLarsonAllen LLP October 3,2014 Phoenix, Arizona t 1![:X 1 A '"r a s "IMF a+:aca rtiran313 .�.rae uannc a ‘XIA .T zu ,S `.' 11111INSIMINE11111111111111 _ MEE INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 17 1AULDIN & ENKINS Management Advisory Services Mauldin&Jenkins understands that even the most experienced governmental management may need advice on significant issues that may affect their respective governmental entity. Maudlin &Jenkins draws on many years of service to a multitude of state and local governmental entities. We provide a variety of management advisory services to governmental clients. Part of our audit procedures include reviewing the City's internal control structure so that we may gain an understanding of how the City operates. Part of these procedures involve reviewing key controls to ensure their operating effectively and efficiently. If we were to identify any weak controls or controls that would be more effective,we would communicate those to management, and discuss with management the best course of action for implementing these new strategies. While our audit team cannot be part of the City's internal control structure, we are able to guide and advise the City on the best course of action as it relates to the problems you face. This is a value added benefit that we feel is part of the audit services we provide. If there were to be additional,significant procedures required by the City outside of the scope of our audit, we would discuss those with the City prior to providing the additional services. Experience with Bond Issuances In case the City plans to issue and/or refund bonds in the coming years, we have elected to share with the City some of our experience in the municipal bond area of auditing and financial reporting. Such experience includes our auditing municipal bond programs with at least $50 million of outstanding bonded debt for which much of the debt has been issued in the past five (5) years, and we have issued numerous consent letters and comfort letters as part of the overall service to our governmental clients during the issuance of such bonded debt. As part of such a large government client base, Mauldin &Jenkins serves over forty(40) clients who meet the above criteria. Additionally,we audit the Georgia State Finance and Investment Commission (GSFIC)who has issued several billions of general obligation bonds on behalf of the State of Georgia. Please see the following page for a sample of clients for whom we have performed bond procedures, and/or audited (or are in the process of auditing)the financial statements for in the past three (3)years whose publicly issued debts are in excess of $50,000,000: INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 18 AULDEy & ENKINS Governmental Entity Amount 1) Georgia State Road&Tollway Authority $ 1,368,067,000 2014 2) DeKalb County,Georgia 1,220,960,000 2014 3) Gwinnett County Board of Education 1,118,860,000 2015 4) Tampa Bay Water 1,070,592,000 2017 5) Gwinnett County,Georgia 948,147,000 2014 6) Charleston Water System 652,683,000 2015 7) Augusta-Richmond County,Georgia 565,186,000 2014 8) Lee County(Florida)School District 418,628,000 2015 9) Atlanta Development Authority 318,880,000 2015 10) Forsyth County(Georgia) Board of Education 316,565,000 2015 11) Forsyth County,Georgia 298,437,000 2015 12) Hamilton County,Tennessee 272,965,000 2015 13) Athens-Clarke County,Georgia 261,461,000 2015 14) Georgia Higher Education Facilities Authority(GHEFA) 243,065,000 2015 15) Beaufort County,South Carolina 214,656,000 2015 16) Henry County(Georgia) Board of Education 189,960,000 2015 17) Henry County(Georgia)Water&Sewer Authority 187,771,000 2015 18) Douglas County(Georgia) Board of Education 174,973,000 2015 19) Columbia County,Georgia 164,131,000 2013 20) City of College Park,Georgia 157,445,000 2015 21) Clayton County(Georgia)Water Authority 151,080,000 2015 22) City of Charleston,South Carolina 142,960,000 2015 23) Rockdale County,Georgia 122,567,075 2014 24) Macon-Bibb County,Georgia 117,189,000 2015 25) Clayton County,Georgia 113,210,000 2015 26) Paulding County,Georgia 109,000,000 2015 27) Fulton County Board of Education 100,348,000 2015 28) Georgia Environmental Finance Authority 91,980,000 2014 29) Atlanta Public Schools 91,880,000 2015 30) Macon(Georgia)Water Authority 86,865,000 2015 31) Cherokee County,Georgia 86,765,000 2015 32) Orange County, North Carolina 82,473,000 2015 33) Walton County,Georgia 79,129,000 2015 34) City of Decatur 77,926,000 2015 35) Cobb County-Marietta Water Authority 76,620,000 2015 36) Barrow County,Georgia 72,950,000 2015 37) City of Griffin,Georgia 66,931,000 2015 38) City of Lawrenceville 61,465,000 2015 39) Fayette County(Georgia) Board of Education 57,055,000 2015 40) Lancaster County,South Carolina 55,139,000 2015 41) City of Albany,Georgia 54,796,000 2015 42) Walton County Board of Education 53,105,000 2015 43) City of Rome 50,000,000 2014 Clients with Publicly Issued Debt Over$50 Million $ 12,165,000,000 INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 19 MAULDIN & ENKINS TAB 3 MAULDIN & JENKINS, LLC PERSONNEL QUALIFICATIONS INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 20 MAULDIN ENKINS Proposed Audit Staffing Plan In order to provide the highest quality service in the most cost efficient manner, Mauldin & Jenkins has formed a client service team which will function as a cohesive unit, and would represent a superb assortment of talent and experience for the audit of the City. The unit would be assembled as follows: 1 r 1 Wade Sansbury Tommye Barie Engagement Partner Quality Control Partner r Kris Trainor Certified Fraud Examiner Trey Scott or Daniel Anderson Manager ) Randy Upchurch Certified Info. Systems Auditor Audit Engagement Team Staff The above team dedicated to audit the City will include (at a minimum): two (2) partners, one (1) full-time manager, and at least one (1) staff professional. The manager (Trey Scott or Daniel Anderson) and the staff professional will be substantially on-site full time throughout the conduct of their role in the audit. Other governmental audit professionals will be available to assist throughout the fieldwork and the preparation of the financial reports. The audit partner in-charge of fieldwork will correspond with City management on financial reporting, audit, and related issues on an ongoing basis, and this individual will also be dedicated to serve the City throughout fieldwork, reporting and conclusion in all respective fiscal years. Mauldin &Jenkins has the depth of resources which allows us to provide you with significant resources of knowledgeable professionals to meet your deadlines. We realize that, regardless of our Firm's qualifications, the quality of service the City receives will correlate directly to the skill level, dedication, and resourcefulness of your audit engagement team. The individuals listed below have been selected to serve the City based on their years of hands-on experience working with government entities, and for their commitment to exceeding client expectations. Your team members are dedicated and resourceful, and among the most talented in their field. We encourage you to contact us whenever you have questions and to view us not just as auditors, but as true advisors. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 21 AULDIN & ENKINS Resumes of Key Personnel to be Assigned to the City Engagement Please see the following pages for information on key individuals who are available to serve the City during the audit process. Wade Sansbury, CPA Partner 941-741-2255 Bradenton, Florida wsansbury@mlcpa.com Wade Sansbury is a partner and a Certified Public Accountant with Mauldin & Jenkins. He is registered and licensed to practice in Florida and Georgia. Wade is a partner who works exclusively in the governmental sector of the Firm's audit practice. Wade has over 20 years of experience serving governmental clients. This experience has included serving counties, cities, and special districts. Wade would serve the City as the engagement partner and will have the overall engagement responsibility for the City including planning, developing the overall audit approach, supervision of staff, and will be a main contact point for the City. Technical Experience During his career, Wade has served numerous governmental clients on behalf of the Firm including 23 municipalities,4 counties,and 23 special districts/authorities. He currently serves 20 such entities in Florida. Of the clients Wade has served as engagement partner. He annually serves twelve(12) municipalities in the State of Florida. Professional Associations and Education • Bachelor of Business Administration in Accounting from Valdosta State University in 1995 • Certified Public Accountant licensed by the States of Florida and Georgia • Member of the American Institute of Certified Public Accountants (AICPA) • Member of the Florida Institute of Certified Public Accountants (FICPA) • Member of the Government Finance Officers Association (GFOA) • Member of the Florida Government Finance Officers Association (FGFOA) Wade has served on the Firm's Partner Advisory Board and is currently serving on the Firm's Executive Committee and as the Firm's Bradenton Office Managing Partner. Wade also currently serves on the Bradenton Area EDC Investor Relations Committee. Continuing Professional Education • 2017 FGFOA--Panhandle Chapter—GASB Update, Shalimar, FL (Instructor)—(4 credit hours) • 2017 FGFOA—North Central Chapter—Preparing for your Audit, Gainesville, FL (Instructor) (4 credit hours) • 2017 M&J Governmental Conference (12 credit hours) • 2016 M&J Governmental Conference (instructor and Participant) (16 credit hours) • 2016 National AICPA Governmental Accounting and Auditing Update, Las Vegas, NV (24 credit hours) • 2015 M&J Governmental Conference (Instructor and Participant) (16 credit hours) • 2015 National AICPA Governmental Accounting and Auditing Update, Washington, DC (16 credit hours) • 2015 FGFOA—Panhandle Chapter Quarterly Meeting, Defuniak Springs, FL (Instructor) (8 credit hours) • 2015 Predictive Index Management Workshop (14 credit hours) ,, ,. INDUSTRY EXPERTISE 1 PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 22 MAULDIN & ENKINS Tommye E. Barie, CPA Partner 941-714-7976 Bradenton, Florida tbarie@micpa.com Ms. Barie is a member(i.e. partner)and a certified public accountant with Mauldin &Jenkins and is licensed to practice in Florida. Her experience covers a variety of .... , clients in state and local government. Since starting her career in 1983, her focus has been serving governmental entities and not-for-profit organizations by providing them financial and compliance audits, compilations, reviews, internal audits, and consulting services. She has knowledge of several computerized systems and has,for many years, incorporated computerized auditing techniques in the engagements she has been involved with. She is active in various professional associations. Ms. Barie just completed her term as Chair of the Board of Directors of the American Institute of CPAs for the 2014-2015 year. Ms. Barie will serve as the engagement quality assurance partner. Technical Experience During her career, Ms. Barie has served numerous governmental clients on behalf of the Firm,all in the State of Florida, including 10 municipalities, 3 counties, and 14 special districts/authorities. She has an extensive history of service to the accounting profession. From 2003-2006 and 2009-2013, she served as a member of the AICPA's governing Council and from 2010-2016,she was a member of the AICPA's Board of Directors. She served as Chair of the AICPA's Finance Committee from 2011-2013 and the National Accreditation Commission from 2008-2011. She has additionally been a member of the Institute's Compensation Committee, Audit Committee and Strategic Planning Committee, as well as the Member Advisory Panel and the Nominations Committee. She served as President of the Florida Institute of Certified Public Accountants from 2004-2005. Additionally, Ms. Barie serves as a member of the GFOA Special Review Committee for the Certificate of Achievement for Excellence in Financial Reporting. She is also a member of the Firm's Audit and Accounting Committee. Professional Associations and Education • Bachelor of Business Administration in Accounting from Stetson University • Certified Public Accountant licensed by the State of Florida • Member of the American Institute of Certified Public Accountants (AICPA) • Member of the Florida Institute of Certified Public Accountants (FICPA) • Member of the Florida Government Finance Officers Association (FGFOA) • Member of the Association of Certified Fraud Examiners Continuing Professional Education • 2016 GAO Standards (8 credit hours) • 2016 Single Audit Update (12 credit hours) • 2016 FGFOA Annual Conference (16 credit hours) • 2016 Ethics for Florida CPA's (4 hours) • 2015 Audits of States, Local Governments & Non-Profit Organizations (7 credit hours) • 2015 GAO Standards (8 credit hours) • 2015 Single Audit Update (12 credit hours) • 2015 Fund Balance Reporting& Governmental Fund (5 credit hours) • 2015 Governmental Accounting &Auditing Update-West (8 credit hours) INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 23 AULDIN & ENKINS Trey Scott, CPA Audit Manager 941-741-2202 Bradenton, Florida tscott@mjcpa.com Trey Scott is a manager and a Certified Public Accountant with Mauldin & Jenkins specializing in serving local and state governmental entities. He is registered and licensed to practice in the States of Florida and Georgia. Trey has 9 years of experience, all with Mauldin & Jenkins. His experience as a manager with the firm covers a variety of state and local governmental organizations in Florida,Georgia,and South Carolina. He spends 100%of his time serving local governments emphasizing cities, counties and special p purpose entities and authorities. Trey will haveA1-1.4.. responsibility for developing the overall audit approach, supervision of staff, and will be a main contact point for the City. Technical Experience During his career, Trey has served numerous governmental clients on behalf of the Firm which include over 30 governmental entities. This includes 12 municipalities, 7 counties, 4 State entities, 4 stand alone water authorities, and 7 special purpose entities. Additionally, Trey has significant experience with federal and state grant programs. He is the main review person for the Bradenton office for single audit procedures. He attends significant single audit training each year and is responsible for teaching at Mauldin &Jenkins in house staff training annually as well as various FGFOA events. Trey is a member of the AICPA, FICPA, GFOA, and FGFOA. Professional Associations and Education • Bachelor of Arts Majoring in Business Administration from Austin College • Master of Public Accountancy from the University of West Georgia • Certified Public Accountant licensed by the State of Florida • Member of the American Institute of Certified Public Accountants (AICPA) • Member of the Florida Institute of Certified Public Accountants (FICPA) • Member of the Florida Government Finance Officers Association (FGFOA) Continuing Professional Education • 2017 FICPA State and Local Govt Conference — Financial Reporting Deficiencies, Orlando FL (Instructor) —(1 credit hour) • 2017 FGFOA—Panhandle Chapter—GASB Update, Shalimar, FL(Instructor)—(4 credit hours) • 2017 FGFOA—North Central Chapter—Preparing for your Audit,Gainesville, FL(Instructor) (4 credit hours) • 2017 M&J Governmental Conference (12 credit hours) • 2016 Ethics For Florida CPA's (4 credit hours) • 2016 M&J Governmental Conference (16 credit hours) • 2016 M&J LEAP Conference—Governmental Level 2 Training—Athens, Georgia (Instructor) (4 credit hours) • 2016 Governmental and Not for Profit Update(12 credit hours) • 2016 Single Audit Update (12 credit hours) • 2015 M&J Governmental Conference (16 credit hours) • 2015 M&J LEAP Conference—Governmental Level 2 Training—Athens,Georgia (Instructor) (8 credit hours) • 2015 Governmental and Not for Profit Update(12 credit hours) • 2015 Single Audit Update (12 credit hours) INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 24 AULD1N ENKINS Daniel Anderson, CPA Manager 941-741-2213 Bradenton, Florida danderson@mjcpa.com Daniel Anderson is a manager and a Certified Public Accountant with Mauldin & Jenkins. He is registered and licensed to practice in the State of Florida. Daniel is a manager who works exclusively(100%)in the governmental sector of the Firm's audit practice. Daniel has approximately 9 years of experience serving governmental clients. His experience covers governmental accounting and auditing and has provided audit services to numerous cities, counties, school districts, and special districts/authorities. Daniel has significant experience with his client's computer systems. This includes specific experience with remote auditing via web access to client information. Daniel will have responsibility for developing the overall audit approach, supervision of staff, and will be a main contact point for the City. Technical Experience During his career, Daniel has served numerous governmental clients on behalf of the Firm including 13 municipalities, 1 county, and 5 special districts/authorities. He currently serves 10 such entities in Florida. Daniel serves a number of municipalities with water and sewer operations. Additionally, Daniel attends significant single audit training each year and is responsible for teaching at Mauldin &Jenkins in house staff training annually. Daniel is a member of the AICPA, FICPA, GFOA, and FGFOA. Professional Associations and Education • Bachelor of Arts Majoring in Business Administration from Austin College • Master of Public Accountancy from the University of West Georgia • Certified Public Accountant licensed by the State of Florida • Member of the American Institute of Certified Public Accountants (AICPA) • Member of the Florida Institute of Certified Public Accountants (FICPA) • Member of the Florida Government Finance Officers Association (FGFOA) Continuing Professional Education ■ 2017 Ethics for Florida CPA's (4 hours) • 2017 M&J Client Governmental Update (16 hours) ■ 2017 M&J Governmental Conference (12 hours) ■ 2017 M&J LEAP Conference(Instructor) (4 hours) ■ 2016 M&J Governmental Conference (16 credit hours) ■ 2016 Governmental and Not for Profit Update (12 credit hours) ■ 2016 Single Audit Update (12 credit hours) ■ 2016 CAFR Preparation Training(8 credit hours) ■ 2016 Ethics for Florida CPA's (4 hours) ■ 2015 M&J Governmental Conference (15 credit hours) ■ 2015 Governmental and Not for Profit Update (12 credit hours) ■ 2015 Single Audit Update (12 credit hours) Identification of Other Available Audit Partners and Other Key Professionals It should be noted that we have additional managers and seniors who spend the majority of their time on governmental audits, and they are available on an as needed basis. These individuals could be utilized on the Government's audit as needed to ensure timely completion and delivery of services. All staff assigned to the INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 25 AULDIN & ENKINS engagement, meet the continuing education requirements of Government Auditing Standards issued by the Comptroller General of the United States. On the following pages is information on several additional key individuals who are available to serve the City during the audit process. Miller G. Edwards, CPA Partner 478-464-8003 Macon, Georgia medwards@micpa.com Miller is a member (i.e. partner) and a certified public accountant with Mauldin & Jenkins. His experience covers a variety of clients in Federal, state and local government. He is responsible for the Firm-wide governmental practice division of Mauldin & Jenkins. He is a past member of the Firm's seven member Executive Committee,which governs the actions and directions of the Firm,and is a member of 1111) the Firm's Audit and Accounting(A&A)Committee. Miller would be available to serve as a supporting resource partner to the City. Technical Experience Beginning in June of 1986, Miller has twenty-nine (29) years of experience in providing public accounting services to the governmental sector, all of which has occurred as an auditor with Mauldin &Jenkins. Since becoming a partner, Mauldin&Jenkins has become the leader in auditing state and local governmental units in the Southeast, helping the Firm achieve the status of auditing the aggregation of more cities, counties, school systems,other local governmental units,state agencies and authorities than any other certified public accounting firm. Under Miller's leadership, Mauldin &Jenkins now serves approximately 300 governmental units. As a partner, Miller serves both large and small governmental units, and is involved directly, and indirectly, in serving over 70 such governmental entities over the past three (3) years (in the capacity of engagement partner in-charge or concurring review partner). A detailed listing of these clients served is available upon request. Professional Associations and Education • Bachelor of Business Administration in Accounting and Risk Management & Insurance from the University of Georgia in 1986 • Certified Public Accountant licensed by the States of Florida, Georgia,and Alabama • Member of the American Institute of Certified Public Accountants (AICPA) • Member of the Florida Institute of Certified Public Accountants (FICPA) • Member of the Government Finance Officers Association (GFOA) • Member of the Florida Government Finance Officers Association (FGFOA) Miller is an instructor/consultant for the University of Georgia's Carl Vinson Institute of Government providing as much as 200 hours annually of continuing education to state and local government officials on the subjects of governmental accounting and financial reporting. He provides similar instructional services on behalf of the Government Finance Officers Association of South Carolina (GFOASC), Georgia Government Finance Officers Association (GGFOA)and the Government Finance Officers Association of Alabama(GFOAA), and is often a guest speaker at various governmental trade shows and conventions. In the past ten(10)years, he has been a speaker at each of the GGFOA's annual conferences on various subjects ranging from: panel member of experts, audit efficiency of governmental units; auditor independence; CAFR Prep 101; several GASB pronouncements implementation sessions; and, each year's Audit and Accounting(GASB) updates. amoiminsimmaimor INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 26 lAULDIN &, ENKINS Joel Black, CPA Partner 678-589-5102 Atlanta, Georgia jblack@mjcpa.com Joel Black is a member(i.e. partner)and a certified public accountant with Mauldin& Jenkins. His experience covers a variety of clients in Federal, state and local government, and non-profit organizations. He currently serves on the Firm's Audit and Accounting (A&A) Committee, helping establish audit policies and answering technical questions for the firm's governmental partner group. Joel would be available to serve as a supporting resource partner to the City. 4' Technical Experience Joel has over twenty-three years of experience in public accounting, twelve years of which was with KPMG LLP serving a wide range of government clients. He joined Mauldin &Jenkins in 2004, becoming a partner in 2005. He currently serves on the Firm's Audit and Accounting Committee, helping establish audit policies and answering technical questions for the Firm's governmental partner group. Joel also serves on the Executive Committee of the AICPA's Government Audit Quality Center and recently served as the chairman for one of five national AICPA task forces focused on improving the quality of Single Audits within the auditing profession. His task force encompasses improving the testing of internal controls and compliance. Among his duties include rewriting three chapters of the AICPA Audit Guide on Government Auditing Standards and Single Audits. While at KPMG, he served as one of six managers within the Firm who were GASB Statement No. 34 technical resources—answering questions on behalf of the Firm's Department of Professional Practice for KPMG personnel around the country. As a partner,Joel serves both large and small governmental units, and is involved directly, and indirectly, in serving over 30 such governmental entities over the past three (3) years (in the capacity of engagement partner in-charge or concurring review partner). A detailed listing of these clients served is available upon request. Professional Associations and Education • Bachelor of Business Administration in Accounting from the Georgia State University • Certified Public Accountant licensed by the State of Georgia • Member of the American Institute of Certified Public Accountants (AICPA) • Member of the Government Finance Officers Association (GFOA) • Member of the Georgia Government Finance Officers Association • Member of the Association of Government Accountants Other Staff Resources(Technology Services and Fraud Examinations) We have individuals with extensive experience and certifications relative to Information Systems Technology as well Fraud Examinations. The following two(2) individuals are available to be of service to the City should the need arise. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 27 AULDIN & ENKINS Randy Upchurch,CISA and CISSP Director of Technology Services Randy has twenty-four (24) years of experience, in information technology (IT) auditing and information security operations and management. Randy has experience working on IT audits that are part of CAFR financial audits. His industry experience includes state and local governments, healthcare administration; life, ;` health and disability insurance in both the public and not-for-profit sectors including two (2) Fortune 500 companies. Randy has experience serving as a Legislative Information Technology(IT)Auditor for the State of Tennessee Comptroller of the Treasury. His roles and responsibilities included: • IT audits and CAFR audits of county governments(clerks of courts, property assessor,general ledger, accounts payable, payroll and motor vehicles); • General and application audits of county government systems; • Annual IT audit of the Local Government Data Processing Corporation (LGDPC); • Annual audit of the State District Attorneys General (Fraud and Economic Crimes, Governor's Drug Task Force and Title IV-D Child Support divisions). Randy has experience in the audits of general controls, application controls as well as electronic audit sampling and data extraction. Randy has also worked on the annual equivalent of a SOC for the Local Government Data Processing Corporation (LGDPC). LGDPC software included general ledger, payroll, accounts payable, clerks of courts, motor vehicle and property assessor applications. In addition to county governments, Randy also has served on audits of the State District Attorneys General (Fraud and Economic Crimes, Governors Drug Task Force,Title IV-D Child Support). He has extensive experience in SOX, SOC1, HIPAA/HITECH,and GLBA compliance program implementation, testing and reporting. His technical expertise includes performing computer forensic investigations, vulnerability and risk assessments and penetration testing of information systems using both technical and social engineering techniques. Further, Randy has: • Managed and performed regulatory compliance reviews including:Gramm Leach Bliley Act,Sarbanes Oxley, HIPAA and HITECH • Managed and performed technical audit and security assessments of computer systems(penetration testing,vulnerability assessments, and application reviews) • Managed Information Technology Operations (Network and Host Security, Identity and Access Management, Information Security Program Development and Implementation) • Managed and performed SSAE 16 Service Organization Controls Audits (SOC 1, 2,3) • Performed and managed Information Technology CAFR audits for the State of Tennessee Comptroller of the Treasury. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 28 AULDIN & ENKINS Kris Trainor, CPA and CFE Certified Fraud Examiner Kris Trainor is a partner with Mauldin &Jenkins. Kris received his BBA in Accounting from Georgia Southern University. Since joining Mauldin &Jenkins in 1995, Kris has worked primarily on audit and consulting engagements. His experience ranges from fraud examinations, agreed-upon procedures, internal audits, financial statement audits, lender compliance, mortgage company audits,governmental audits, and loan servicing compliance audits. He also has audit and inventory experience in the manufacturing industry. Kris is a member of the American Institute of Certified Public Accountants, the Georgia Society of Certified Public Accountants, the Association of Certified Fraud Examiners, Beta Gamma Sigma, and Beta Alpha Psi. Other Staff Auditors&Accountants. Prior experience with government audits is as important for the staff as it is for management. Experience in governmental accounting and auditing minimizes the amount of time the staff will require to fully understand the complexities of the operations and financial accounting and reporting systems. Prior experience also enables the staff to recognize problems early in the engagement. This, in turn,allows the desired early consideration and resolution of problems. Ail staff assigned to the City's engagement will have prior experience serving government clients and/or will have substantial government audit training. All staff assigned to the City will be on-site throughout the entire engagement. We would like to stress the fact that the majority of our governmental staff work on state and local governments 100%of their time. This reduces the"learning curve"on most all audits by reducing the amount of"on-site training"that occurs at most national accounting firms. This is very evident in our proposed hours, which are typically much less than that of other firms. Our staff knows what is required and how to get the work done efficiently and effectively. Our staff members understand the laws and regulations specifically pertinent to Florida entities. We also normally have more high-level hours of service by our partners and managers(in the conduct of fieldwork)than the national firms,thereby reducing redundancy and other audit engagement inequities. We bring our experience to the field where timely decisions can be made. Employee Retention. We are committed to providing continuity of our engagement team members. We recognize that this is also an important factor for the City, as it limits the amount of retraining that needs to be performed each year. Our staff retention rates of approximately 90% are considered to be among the best in the profession (and much better than national firms). We are able to not only provide consistency with the partners and managers on our engagement teams, but seniors and staff as well. Retention > 90% It is also our goal to minimize disruptions to the City by staffing the engagement so as to provide continuity, both during and between audits. It is the Firm's policy not to rotate key audit staff,consultants or specialists off a multi-year contracted audit engagement. Consequently, it is not anticipated that any key audit personnel will be rotated away from the City's annual audit. In any business, however,turnover is inevitable. When this happens, we will provide resumes of suggested replacements and any changes in key personnel would always he discussed timely with City officials to their satisfaction. Noihk. voia► INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 29 1AULDIN & ENK INS TAB 4 AUDIT APPROACH INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 30 lAULDIN & ENKINS Mauldin &Jenkins Understanding of the Services to be Provided Per review of the City's RFP, Mauldin & Jenkins, LLC understands that the City is soliciting proposals from Certified Public Accounting Firms with Governmental Accounting experience to submit a response to their RFP to provide Independent Financial Auditing Services in accordance to the RFP documents.The fiscal years ended September 30, 2017, 2018, and 2019, are included in the City's RFP, and a renewal option for an additional two years may be negotiated. Mauldin & Jenkins is 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: Financial Audit Mauldin &Jenkins, LLC 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. 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,the Uniform Guidance and OMB Compliance Supplement (formerly 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. 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 (uniform guidance and OMB Compliance Supplement); d. Management letter Single Audit Mauldin & Jenkins, LLC will also be required to perform a single audit of all federal financial assistance provided to the City (if any). 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. As a result of the examination, an electronic copy of the following reports will be required: 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. Comprehensive Annual Financial Report (CAFR) Mauldin & Jenkins, LLC will review the City's CAFR and provide comments/assistance to the City prior to submission to the GFOA. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 31 MAuLDIN ; & ENKINS Mauldin & Jenkins Audit Approach to Provide the Required Services Proposed Audit Schedule. Upon notification of obtaining the audit contract with the City, we would provide to the City a timetable for the audit process, a detailed audit plan and a list of all schedules to be prepared by the City. Adequate supervision and lead time will be provided by us with respect to assistance needed by City staff. Based on our review of the City's prior year financial statements, review of the City's request for proposal, we have also prepared a schedule of events, including level of staff and number of hours to be assigned to each proposed segment of the engagement, which is representative of the anticipated typical audit in the tabular presentation below. We have further prepared a schedule of events representative of the expected 2017 audit and is broken out by hours by anticipated team member: Segmented Hours by Staff Level Engagement Team Members by Level Segments Partner Manager Staff Total Segment I - Planning and Interim Procedures 20 30 25 75 Segment II - Final Audit Fieldwork Procedures 30 100 90 220 Segment III - Review, Completion & Delivery Procedures 40 60 30 130 Total Engagement 90 190 145 425 High Percentage of Partner & Manager Involvement - Partner and manager involvement varies with different firms. At Mauldin &Jenkins, we believe it is important for our partners and managers to be highly involved in the audit process,including fieldwork. We bring our experience to the field. This is a value-added concept most firms do not employ. That being said, we believe it is important to note that our proposal includes: • Substantial Partner Hours as Compared to Total Hours. • Substantial Manager Hours as Compared to Total Hours. • Approximately 66% of all anticipated hours of service are partner and manager hours which means we bring our experience to the field and not just the front end and back end of the audits. Mauldin &Jenkins believes that we are uniquely qualified to perform the audit of the City. In a time in which very significant changes continue to be implemented in the City's financial reporting model, it is imperative for the City's auditors to understand the City's financial reporting environment and processes. The team proposed to serve you is made up of individuals who have significant experience in auditing local governments cf various sizes in the Southeast. Our audit of the financial statements will be conducted in accordance with auditing standards generally accepted in the United States of America and will conform to the standards as set forth in the following: INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 I 32 ,&lAULDIN ENKINS • "Generally Accepted Auditing Standards" developed by the American Institute of Certified Public Accountants (AICPA) • "Government Auditing Standards" issued by the Comptroller General of the United States • "Audits of State and Local Government Units" prepared by the State and Local Government Committee and published by the AICPA Our audit will include such tests of the accounting records and such other auditing procedures as we consider necessary in the circumstances, which include, but are not limited to, those procedures necessary to test compliance and to disclose non-compliance with specified laws, regulations, and contracts. We will use Firm manuals specifically designed for governments to develop audit programs tailored to the City which incorporate the requirements set forth above. We anticipate that these procedures will enable us to express our professional opinion that the financial statements of the City present fairly, in all material respects, the financial position and results of operations of the various opinion units in conformity with accounting principles generally accepted in the United States of America. If conditions are discovered which lead to the belief that material errors, defalcations, or other irregularities exist which might prohibit us from expressing an unqualified opinion or if any other circumstances are encountered that require extended services,we will promptly advise the City. No extended services will be performed unless they are authorized in contractual agreement or in an amendment to the agreement. Upon notification of obtaining the audit contract with the City, we would determine with City management a more detailed timetable for the audit process, and a detailed audit plan leading up to a list of all schedules to be prepared by the City. Adequate supervision and lead time will be provided by the auditor with respect to assistance needed by the City staff. Proposed Segmentation. Our professionals, who are knowledgeable with respect to audit requirements for governmental entities, will be assigned based on their expertise with respect to each segment. Our audit procedures, related documentation and quality review will be segregated by each segment as follows based on our review of the City's prior financial statements, budgets, request for proposal, and other information available: se, s GOAL fi egt es ; tr s Segment I: Segment II: Segment Ill: Planning and Year End Review/ Interim Procedures Completion/ Procedures (Final Fieldwork) Delivery <<< Continuous Discussions with Client Management>>> MI\ 4111111111111111•11111111111111111111111111111111 INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 33 AULDIN & ENKINS The below timeframes are estimates based on our understandings with the City as to its desires. We at Mauldin &Jenkins would be flexible in the timing of certain events as requested by the City. As noted in the table below, we want to work with City personnel in an effective manner. We intend to do a great deal of planning and tailoring of our approach from our initial visits. We do not want our clients to feel that they have to reinvent the wheel every time we ask for something. However, to make this process cost the City as little as possible (both in dollars and their individual time), it is important to start only when ready and avoid auditing a moving target. Audit Timing. Our professionals, who are knowledgeable with respect to audit requirements for governmental entities, will be assigned based on their expertise with respect to each segment. Our audit procedures, related documentation and quality review will be segregated by.each segment as noted on the following pages, based on our review of the City's prior financial statements, budgets, request for proposal, and other information available: The below timeframes are estimates based on our understandings with the City as to its desires. We at Mauldin &Jenkins would be flexible in the timing of certain events as requested by the City. As noted in the table below, we want to work with City personnel in an effective manner. We intend to do a great deal of planning and tailoring of our approach from our initial visits. We do not want our clients to feel that they have to reinvent the wheel every time we ask for something. However, to make this process cost the City as little as possible (both in dollars and their individual time), it is important to start only when ready and avoid auditing a moving target. The table below attempts to depict the timing and key elements of the planned audit process. These timelines are also dependent on the timely receipt of the Florida Retirement System pension information. Timing of Audit Process and Procedures Sept Oct Feb Mar Apr Segment I - Planning and Interim Procedures Initial planning meeting (entrance conference) Preliminary planning procedures Detailed audit plan and prep of PBC listing Internal Control Documentation and Testing Segment II - Final Audit Fieldwork Procedures Performance of final audit fieldwork procedures Peformance of Single Audit procedures (if required) Exit conference with management Segment Ill - Review, Completion & Delivery Review of City prepared CAFR Preliminary management comments/ recommendations Written comments delivered to mgmt and the Commission Final exit conference _ Final report delivered Presentation to the City Commission INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 34 AULDIN & ENKINS Segment I -Planning and Interim Procedures: • Meet with the prior auditor to review prior year workpapers and obtain appropriate prior year information; • Obtain a signed engagement letter for the financial and compliance audit; _ • Meet with City management to discuss the scope of the audit,timing of our work, and preparation of client schedules, and to address any concerns; • Review previously issued and interim financial reports, comment letters, monitoring reports, and other supporting workpapers; • Familiarize ourselves with the organizational structure of the City; • Read minutes of City meetings; • Review the City's current year budget, as adopted and revised; • Review debt agreements, and other various documentation; • Gain an understanding of the City's accounting policies and procedures, including the financial and other management information systems utilized by the City; • Obtain an in-depth knowledge of the EDP equipment, software and systems in use; • Perform analytical reviews to determine critical areas and assess risks; • Perform a preliminary evaluation of the internal control structure at the account and assertion level; • Design and perform applicable tests of controls related to the financial statements and internal accounts; • Make fraud inquiries and assessing the risks of material misstatement; • Obtain a list of cash, investment, receivables, debt, and selected revenue accounts for confirmation purposes, as applicable; • Determine audit strategies for balance sheet and operating statement accounts based on audit risk; • Obtain a preliminary schedule of expenditures of Federal awards to initiate planning and internal control testing for the Single Audit; • Prepare year-end audit programs; • Meet with appropriate City personnel to discuss the results of our preliminary audit work. Segment II - Final Audit Fieldwork Procedures: • Conduct an analytical review of account balances based on closing it. balances for which we will utilize analytical procedures (such as 4110. reasonableness tests, trend analysis, and predictive tests) to reduce substantive testing; ri • Test the valuation, restrictions and cut-offs of cash and investment balances, as applicable; • Test receivable cut-offs and balances, including an analysis of subsequent receipts; • Review and testing supporting documentation for the allowance for doubtful accounts andprepaid items; • Vouch capital asset additions and deletions,analyzing charges for appropriate accounting and testing depreciation; • Test accounts payable cut-offs and balances, including an analysis of subsequent disbursements; • Test accrued payroll, compensated absences, claims payable, OPEB payable, and other accrued liability cut-offs and balances; • Test debt balances and debt covenant compliance; • Test compliance with applicable laws and regulations; • Test the classification of net position (unrestricted, restricted and net investment in capital assets); • Perform analytical procedures and substantive testing of revenues and expenditures/expenses; semmmemmmmwmmsmr INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 35 AULDIN & ENKINS • Obtain and auditing the final schedule of expenditures of Federal awards; • Complete compliance tests for the major programs selected for testing as required by the Federal Single Audit Act, as applicable; • End of fieldwork exit conference. Segment Ill -Review,Completion &Delivery Procedures: • Review workpapers to ensure quality and thoroughness of audit GOAL procedures; ` " • Summarize the results of audit procedures; I ''- • Obtain attorney letters; • Evaluate commitments, contingencies and subsequent events; • Propose audit adjustments; • Summarize and evaluating passed audit adjustments; • Evaluate compliance exceptions; • Perform financial condition assessment procedures; • Prepare drafts of audit reports and management letter; • Deliver drafts of audit reports and letters to appropriate client officials; • Finalize all reports and management letter; • Obtain signed representation letter and the City's approval of the final financial statements; • Draft the Data Collection Form and obtaining the City's approval; • Prepare and provide the City a PDF document of the audited financial statements; • Hold final exit conferences and presentations with appropriate City officials. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 36 AULlll �• & ENK1h Extent of Statistical Sampling and Analytical Procedures to be Used on the Engagement Sampling. Our approach to auditing relies heavily on the use of audit sampling as provided in U.S. Auditing Standards AU-C Section 530,Audit Sampling. We would plan to utilize audit sampling whenever a decision is made to apply a specific audit procedure to a representative sample of items within the account balance or class of transactions with the objective being reaching a conclusion about the entire balance or class. We anticipate using audit sampling on the following types of audit tests: • Substantive tests of details of balance sheet account balances • Substantive tests of details of transactions • Tests of controls • Tests of compliance with laws and regulations Our use of audit sampling will be based on the guidance in AU-C Section 530 and the AICPA Audit and Accounting Guide-Audit Sampling. Analytical Procedures. Analytical procedures can be applied to almost every financial statement amount and are often less costly to apply than tests of details. It is, therefore, an efficient audit strategy to employ analytical procedures to the maximum extent . r possible, and vary the required extent of substantive tests of details inversely with the degree of assurance already obtained. .-�' " The elements of analytical procedures we plan to consider are as follows: • Identify the factors on which a given accounting result should depend; • Determine the approximate relationship between the accounting result and those underlying factors; • Predict what the current results should be if that relationship continued; • Compare the actual current result to the prediction; • Investigate and corroborate significant variances between the actual result and the prediction; and • Reach a conclusion as to the reasonableness of the reported result. Types of analytical procedures employed will include: • Reviewing changes from prior years for reasonableness. • Scanning accounts for items larger or smaller than expected when compared to budgets or forecasts. • Reviewing and comparing logical relationships between years (e.g., payroll taxes and benefits to wages,etc.). Comparisons between years can be made more effective when logical relationships between elements of the financial statements that would be expected to conform to the predictable pattern are used to develop trends. This is primarily accomplished through the use of ratios. • Analyzing and comparing nonfinancial information, such as number of taxable properties, geographical area, number of employees, etc. All analytical procedures performed as substantive tests are documented on each applicable audit program. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 37 AllL1)I\ & ENK1 \ S 1 Utilization of Audit Software and/or Electronic Spreadsheets All members of the audit staff have had significant training in the use of technology in performance of our auditing techniques. Mauldin & Jenkins uses a very detailed and structured approach in using technology aided auditing techniques, which has been extremely successful for us in our past engagements and allows us to be incredibly efficient in performing the necessary tasks to complete the audit. This provides for our professionals to be as little of a distraction to the City's personnel on a daily basis. At the start of the engagement during our planning phase,we will assess the computer systems used by the City, and plan the specific computer aided auditing techniques to be used. This will decrease time spent in the initial file setup,trial balance setup,and data integrity testing. This approach will allow for more effective audits resulting in a fast sort, filter and analysis of multiple transactions in a population, and provide for drilling down on those items that have the highest risk. When applicable, we will use CaseWare's IDEA software. IDEA is the world's most comprehensive and intuitive data anlysis tool available. It gives us deeper insights into what is transpiring within the government to identify risks that may have gone undetected. It helps us spend less time looking for evidence and more time improving controls and processes. IDEA data analysis software helps us: ■ Conduct more efficient and effective audits,while improving audit ' quality 0 IDEA • Increase value of audit findings with complete, 100%data coverage Data Analysis Software p • Identify risk and control issues before they impact the entity • Improve productivity by automating procedures and eliminating manual tasks Examples of uses of IDEA at the City are as follows: 1) Summarizing disbursements for a period by dollar range and compare to policy guidelines for complying with certain attributes (approvals and signature requirements,etc.); 2) Searching check register listings for unrecorded items or checks written during the fiscal year; 3) Converting bank or investment activity statements to Excel to provide for a quick listing of deposits for an entire period/year; 4) Converting vendor file information to Excel and comparing employee files with addresses for any similar or unusual items related to vendor files; 5) Analyzing general ledger detail transactions and journal entries for effective and efficient testing of all activity for the fiscal year as compared to the prior year; 6) Summarizing of large volumes of transactions to determine agreement to the general ledger; 7) Sampling for testing of internal controls. The trial balance downloaded will then be used to agree to the ultimate draft of the City's financial statements ensuring that all adjustments and balances are brought forward into the financial statements and providing a clean audit trail for review and support of the City's financial statements. We utilize CCH Prosystem Engagement audit software to house our audit workpapers and Microsoft Excel and Word documents as needed as part of our audit documentation and testing. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 38 AULDIN & ENKINS Approach Used to Gain an Understanding of the City's Internal Control Structure For purposes of an audit of the financial statements and statutory, regulatory and contractual compliance, the City's control structure consists of the following five (5) a, elements as they relate to the City's ability to conduct c>� o operations and use resources in accordance with oQ� Q`z9 cam" management's authorization and consistent with laws, regulations, contracts and policies, and to record, r ' Control Environment process, summarize, and report financial data consistent with assertions embodied in the financial statements: the control environment; risk assessment, control activities, information and communication processes/systems, and • monitoring. The internal control structure and its policies1112 • trot Activi00 and procedures are an important source of information about the types and risks of potential material Informat on& Corn unication misstatements that could occur in the financial0 statements and violations of statutory, regulatory and , contractual requirements. This information is essential Mon toring Acti sties for effective audit planning and in designing effective and efficient audit tests. In our understanding of the City's internal control structure,we will obtain knowledge about: • How internal control structure policies, procedures and records are designed; • Whether internal control structure policies, procedures and records have been placed in operation, i.e., whether the City is using them; • Whether internal control structure policies, procedures and records are designed effectively,i.e., whether they are likely to prevent or detect material misstatements or compliance violations on a timely basis; and, • Whether internal control structure policies, procedures and records are operating effectively. Auditing standards generally accepted in the United States of America require the auditor to document our understandings of the internal control structure elements. The form and extent of documentation is flexible. Generally, the more complex an entity's internal control structure and the more extensive the procedures performed to obtain the understanding, the more extensive our documentation should be. In addition to memos, we plan to use specific designed forms and questionnaires to document our understanding of the internal control structure. Recent changes in auditing standards, known as the risk assessment standards, denote that the auditor is not required to test internal control so as to rely on them to reduce other test work, but do not allow for only inquiry procedures related to internal control. We are required, and will perform, other procedures, such as walkthroughs and observation, related to controls over significant financial statement and audit assertions. mossummomommimiumums INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 39 AULDIN & _ ENKINS TAB 5 PRICE PROPOSAL INDUSTRY EXPERTISE PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 40 AULDIN & ENKINS Price Proposal PRICE PROPOSAL FORM RFP #17-005 AUDITING SERVICES COMPANY NAME Mauldin & Jenkins, LLC A. ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED IN RFP #17-005 FOR FISCAL YEARS ENDING 2017. 2018, 2019: 2017 $ 33,400 2018 $ 34,400 2019 $ 35,400 TOTAL S 103.200 B. ANNUAL PRICE PROPOSAL FOR SINGLE AUDIT FEE: 2017 $4,500 per major federal'state program 2018 $4.500 per major federaPstate program 2019 $4,500 per major federal program TOTAL $4,500 per major fedeial'state program - total is dependent on number of major programs each year. PrI7711MCRTrtry foes 2S . .- • • INDUSTRY EXPERTISE PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 41 11AULDIN & ENKINS C. ANNUAL PRICE PROPOSAL FOR ASSISTANCE ANIDOR REVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR), IF REQUIRED: 2017 $1.500 2018 $1.500 2019 $1!500 TOTAL $4.500 (A renewal option for an additional two years may be negotiated for services provided in items A through C). 9,132017 Date Mau!din & Jenkins. LLC Company Name AD0007585 License Number Wade Sansbury. CPA Authorized 0 leer pint)/ &oo (-- /rip(joid Authorized Signature 0"---- 1 A I-uub ry*es 26 ommommi INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 42 9AULDIN & ENKINS Important Notes to be Considered: Note (1) — Unlimited Correspondence: It is Mauldin &Jenkins' policy to not charge for simple discussions and conversations that occur between the governmental entity and Mauldin &Jenkins that are only simple discussions (i.e., a phone call to ask certain questions that do not require additional research). Note (2)—Free Periodic/Quarterly Continuing Education: We provide free quarterly continuing education classes to our clients. This could amount to approximately $1,600 of annual savings for the City's finance department per person. Note (3) —Additional Services: If it should become necessary for the City to request Mauldin &Jenkins to provide any additional services (such as bond issuances, etc.), then such additional work shall be performed only if set forth in an addendum to the contract between the City and Mauldin &Jenkins. Note (4) — No Hidden Fees or Costs: The pricing schedules contain all pricing information relative to performance of the audit as required by the City including all reimbursement for travel, lodging, communications, etc. Our estimated number of hours and the associated fee estimate indicated are based on our professional judgment and experience with similar governmental entities. So long as there are no significant changes in the operations of the City,the scope of services requested,and/or significant problems requiring additional time, our quoted fees will not change. INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 43 AULDIN & ENKINS TAB 6 REQUIRED FORMS INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 44 MAULD1N ' & ENKINS 43#7.4P ()C:()(?F) ' Itnr:,iw EXHIBIT "G" RFP CONFLICT OF L`NTEREST DISCLOSURE FORM The award oft'is contract is subject to the provisions of Chapter 112, Florida Statutes. All Proposers rmst disclose within parr Propos 6e *t-1-'e of any City of Ocoee employee, Mayor or City C'.onnrtssioner, other City Official, or City Consultnints, who awns assets or capital stock directly or indirectly, in the Proposers firm or any of its brrtei s. or would directly or indirectly benefit by the profits or emoluments of this proposal erect ownership or benefit applies to any members of his or her=mediate fatly.) Propose ceruses that no -nArrber of the entity's ownership Or tranagetMtat is presently applying for an employee position or act:ely seeking an elected position with the City. In the est that a conflict of tweet is identified in the p:ortsioa of services,Proposer agrees to immediamly :notify the City in waiting. The purpose of this disclosure form is to pre the City the iiforruzon needed to Iden f potenval conflicts or merest Sar the City Cosnrtissj.on Evaluation Com,-no-tee members, and other key City employees and consultants evolved in the award of this contract_ According to Chapter 112. Florida Statutes, the term "conflict of interest' "means a situation in which regard for a private interest tends to Lead to disregard of a public duty or interest",and refers to situations in which financial or other personal Considerations may adt-ersely affect, or have the appearance of adversely affecting. an Prnployees professional jadgz_tent in exercising any City duty or respozsibtlity in administration,management,iz sazcction.research,or other professional activities. Please check one of the following statements and attach additional documentation if necessary: `t: To the best of our knowledge,the trite-signed frra has no potential conflict of interest for this Proposal. The randsrsiened favi,by arrcmie -to this form.submits information which may be a potenn al conflict of ince•-:est 3or this Proposal. Acknowledged by Mauldin Sc Ienkias_LIC Fima Nam (4 4 ' • ,t''. -- Signature Wade Salisbury.,CPA Partner ':ane and Title Lariat or Type) September 14. 2017 Dare r717 As r inervices 27 INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 45 AULDIN &: EN K IN S RFP I7-OO COMPANY INFORMLATI0N,SIGNATURE SROFFT FA X3RE TO COMPLY W:TEH THESE RFP'fl 3TEU CTIONS WILL RESLL.T IN DISQUALIFICATION OF YOUR PROPOSAL PLEASE MN BELOW ATTESTING THAT YOU HAVE READ AND UNDERSTAND ALL RIP P STR.UCTIONS-ANT THAT THE PRICES REFLECTED ON THE"SCOPE OF SER.VICES.PRICE PROPOSAL FOP. ':"ARE ACCURATE AND Zi`TfHOTT CO1.LUSTON. Maw it;Jc Ierk'=rt.LLC, rP41.174T-1453 COMPANY NAME TELEPHONE ra:LtDE AREA CODE`, 11411 747-f,338 FAX (INCLUDE AREA SCO- ) trt sxar»bauT,a;.mi ca a.::cm E-MAIL ADDRESS r E hAta IF REMITTANCE ADDRESS IS'DIFFERENT AUTHORgELSIGN_ATUP 4., + ) FROM PURCHASE ORDERABDRESS.. PLEASE LNDIC,ATE BELOW- Wade sacsrurv,CPA Parte NA` E'TTLE t?LEASE PRO 1401 Manatee Ave W,ante 1.130 STREET ADDRESS T3ra3e rofl Flarita 1:4205 CITY STATE FEDERAL ID= 5S-06S2043 Inc%tir tal CorrAration X Parzeribp Other 4 ypecrfl Sween to=1 Ascribed be3are the tics 14th Sar o: September M17 Peers taaD Know/t X ce Proloced Iienrifcrt:cn Notes Pu c-Sure of-Florida (The of:derma;atioti) ((ratty of Manatee Sig=nature o_-Notuy Put nr 501Y'�:• CARA KRUSCH . /AM Notary Public,State of Florida CCt AjSLi \ � My Comm.Expires June 13,2021 Printed typed ec stamped Commission No,GG 108790 COME:a:ss-:oaaEd myna ofNatarr Pools - • I aL - ,,i, 0 _mmtoes 28 INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 46 AULDIN & ENKINS • 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) None noted. 13 ACKNOWLEDGMENT OF ADDENDA: Proposer acknowledges receipt of the following addenda: No. 1 Dated 8/30/2017 No. 2 Dated 9/7/2017 No. 3 Dated 9/13/17 1-4-P 14115b Aud ng services 16 INDUSTRY EXPERTISE I PROACTIVE SERVICE I PROVEN RESULTS SINCE 1918 47 ', 7b -iso .rF fi .. ,„- ' 4,, #0.,-,,f ,•••-•1,,,:- '` www.mjcpa.com — --_- MAULDIN & JENKINS, LLC , �y o . Al 11,,,,,, i,. ,,„... . P! ' „. 4 3 ,44 1401 Manatee Avenue West, Suite 1200 -. �® Bradenton, Florida 34205 • (941) 747-4483 (Phone) ; �+ ( 941) 747-6035 (Fax) # I CliftonLarsonAllen CLAconnect.com q 9 +, `V $ xt 1rt. fi1 1 I 4g , l CITY i i September 14, 2017 Proposal for Auditing Services City of Ocoee, Florida RFP #17-005 ORIGINAL Prepared by: CliftonLarsonAllen LLP 402 Kentucky Avenue, Suite 600 Lakeland, Florida 33801 Office 863-680-5600 I Fax 863-680-5650 Mike Carter, CPA, Principal Mike.Carter@CLAconnect.com Direct 863-680-5614 I Mobile 863-797-7048 :t f 7) .;1'''•) WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors,LLC,an SEC-registered investment advisor. SECTION B. TABLE OF CONTENTS Section B.Table of Contents _ 1 Section C. Letter of Transmittal 2 D. Mandatory Criteria 4 State License 4 Staff Licenses 5 E. Firm's Qualificaitons 8 1. Recent Governmental Experience 8 2. Staff Training Programs 10 3. Firm's Depth in Governmental Audit Areas 10 4. Firm's Commitment to Governmental Sectors 12 5. Participation in Governmental Associations, Organizations, and Regulatory Bodies 13 6. Management Advisory Services 16 7. Experience with Issuance of Revenue and General Obligation Bonds 16 F. Personnel Qualificaitons 18 Roles and Responsibilities 18 Biographies 19 Continuing Professional Education 24 Continuity of Staff 25 G.Audit Approach 26 Work Plan 26 Financial Statement Approach 27 Single Audit Approach 32 Planned Use of Specialists 33 Ability to Complete Audits on Schedule 34 Staff and Hours for Each Proposed Segment of the Engagement 34 Sample Sizes and the Extent Statistical Sampling is to be Used 34 Type and Extent of Analytical Procedures to be Used 35 Approach to Gain an Understanding of the Internal Control Structure 36 Approach to Drawing Audit Samples for Purposes of Tests of Compliance 37 Use of Technology 38 Extent and Use of Electronic Data Processing Software in the Engagement 38 Technology Programs Utilized 39 Procedures Performed Regarding Significant Computer Systems 39 H. Price Proposal 41 Price Proposal Form 41 Fee Considerations 43 I. Forms 44 Summary of Litigation and Acknowledgement of Addenda 44 Conflict of Interest Disclosure Form 45 Company Information and Signature Sheet 46 Appendix A: Continued Professional Education 1 Statement: All working papers and reports will be retained at CLA's expense for a minimum of five years after release of audit, unless we are notified in writing by the City of the need to extend the retention period. CLA will make working papers available, without charge, to the City upon request. (7) ©2017 CliftonLarsonAllen LLP I 1 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING SECTION C. LETTER OF TRANSMITTAL CliftonLarsonAllen LLP 201 North Franklin Street,Suite 2500 Tampa, FL 33602 813-384-2700 I fax 813-384-2750 CliftonLarsonAllen www.claconnect.com September 14, 2.017 City of Ocoee Attn: Purchasing Agent 150 N. Lakeshore Drive Ocoee, FL 34761-2258 Dear Purchasing Agent: Thank you for inviting us to propose our services to you. We, at CliftonLarsonAllen (CLA), gladly welcome the opportunity to share our approach to helping the City of Ocoee (the City) meet its need for professional services. Understanding of the Work to be Done The enclosed proposal responds to your request for services to audit the City's financial statements for the fiscal year ending September 30, 2017, 2018, and 2019. These audits will be performed in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; U.S. Office of Management and Budget Uniform Guidance; and Chapter 10.550, Rules of the Auditor General for the State of Florida. Authorized Representative Mike Carter, CPA, Principal 402 South Kentucky Avenue, Suite 600 Lakeland, Florida 33801 M ike.Carter@CLAconnect.com Direct 863-680-5614 I Mobile 863-797-7048 National Reach with Local Presence At CLA, we have the benefit of having the resources of a national firm while being able to serve you from our Lakeland office. We also have offices in Tampa, Orlando, Sebring, Winter Haven, Ft. Myers, and Naples for additional resources. Location of Servicing Office This engagement will be serviced from our Central Florida office located at 402 South Kentucky Avenue, Suite 600, Lakeland, Florida 33801-5354, which employees 58 professional staff. A member of N Q exia ©2017 CliftonLarsonAllen LLP 12 International At CLA, our greatest strengths correspond to your most critical needs; we possess the full spectrum of resources needed to most effectively help the City's management team and Commission members meet their goals—all at a very competitive rate. We believe we are the most qualified firm to audit the City because of: • Experience Auditing Florida Governments. CLA has over 60 years' experience auditing entities similar to the City. We audit more than 70 Florida governments including 12 municipalities, 8 counties, and dozens of special districts. In addition, during the past year we performed almost 900 single audits, including more than 60 single audits of federal programs and state projects for Florida entities. We understand the requirements of the Florida Statutes, the Rules of the Auditor General, and the unique reporting requirements for Florida municipalities. • An Efficient and Effective Work Plan. We currently serve over 2,000 governmental entities nationally, which enables our staff to understand the scope of your audit. We also understand the City's complexities, not just from a compliance standpoint but also from an operational point of view. We have developed an effective work plan that takes into consideration your needs for high quality audit services, as well as timely deliverables. As a result of our efficient work plan, we commit to meeting your deadlines to complete our auditing services within the time period that you specify. • Thought Leadership. Members of our firm have held numerous thought leadership positions, including the GASB board, AICPA Government Audit Quality Executive Committee, GFOA's Committee on Accounting, Auditing and Financial Reporting Standing Committee, AICPA's State and Local Government Standing Committee, and GFOA's Special Review Executive Committee. We have incorporated our experience with these boards and committees into our audit framework. • Engagement Team. We know that quality people drive quality results, which is why our commitment to you starts with the engagement team members who are selected based on their experience, focus on serving municipalities, and who are the best fit for you. Our goal is to provide quality, client service by developing strong professional relationships with City staff. We are committed to providing services that are tailored specifically for each of the City's opinion units and the objectives you look to achieve. Andrew Laflin, Principal,will be the main contact for the City regarding this project. • A Focus on Providing Consistent, Dependable Service to Government Entities. We differ from other national firms in that we focus on state and local governments, nonprofit organizations, and the needs of non-SEC clients, allowing us to avoid the workload compression typically experienced by firms that must meet public companies' SEC filing deadlines. CLA is organized into industry teams, affording our clients with specialized industry-specific expertise supplemented by valuable local service and insight. Therefore, the City will enjoy the service of members of our local government services team who have experience with similar governmental entities and understand the environment and issues critical to you. Thank you again for the opportunity to present our qualifications. We commit to meeting or exceeding the scheduled timeframe. I am a principal, and as such have the authority to sign on behalf of the firm. If you have any questions about our offerings, please do not hesitate to contact me. Sincerely, CliftonLarsonAllen LLP Mike Carter, CPA Principal 863-680-5614 Mike.CarterCLAconnect.com A member of QNexia ©2017 CliftonLarsonAllen LLP 13 International D. MANDATORY CRITERIA CLA affirms that we are properly licensed to practice public accounting in the State of Florida and that all key personnel assigned to the audit are CPAs. Below, we have provided copies of licensure. State License STATE OF FLORIDA , DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION 4,.,,tfi. ...._,,i lx.t.N .'44;'',,,.-,0"� BOARD OF ACCOUNTANCY (850)487-1395 240 NW 76TH DRIVE, SUITEA GAINESVILLE FL 32607 CLIFTONLARSONALLEN LLP 220 S 6TH STREET,SUITE 300 ATTN.BETH SPENCER MINNEAPOLIS MN 55402-1438 Congratulations! With this license you become one of the nearlyV. "" = one million Floridians licensed by the Department of Business and k Professional Regulation Our professionals and businesses range STATE OF FLORIDA +I i from architects to yacht brokers,from boxers to barbeque DEPARTMENT OF BUSINESS AND t restaurants,and they keep Florida's economy strong. / PROFESSIONAL REGULATION AD0005891 ISSUED: 10/21/2015 Every day we work to Improve the way we do business in order ss to serve you better. For information about our services,please log onto www.myfloridalicense.com. There you can find more ACCOUNTANCY PARTNERSHIP., X information about our divisions and the regulations that impact CLIFTONLARSONALLEN LLP you,subscribe to department newsletters and learn more about the Department's initiatives. y, Our mission at the Department is,License Efficiently,Regulate 5a" �T` -- 3, Fairly.We constantly strive to serve you better so that you can serve your customers. Thank you for doing business in Florida, is LICENSED under the provisions of Ch 473 FS u- and congratulations on your new license! v raro�a it o-c zc s.2 0. s' DETACH HERE RICK SCOTT,GOVERNOR KEN LAWSON,SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY 4 ' 4 LICENSE NUMBER q A1)0005891 _ The ACCOUNTANCY PARTNERSHIP Named below IS LICENSED - Under the provisions of Chapter 473 FS. _ -" . '- - Expiration date: DEC 31,2017 `�" CLIFTONLARSONALLEN 3' -'7'"^4, •..ei• Iy 220 S 6TH STREET,SUR'* s i} titi f ATTN:BETH SPENCER ""�""" `. & MINNEAPOLIS MN 55402-1436 ' - �" 7f -----, -:`,-4__'' ..::'.'• t ^ k Vic` ■ rr' l4 ISSUED: 10/21/2015 DISPLAY AS REQUIRED BY LAW seas L1510210001819 ., , .k.F ° , .,t... ,,c, .r,..-'-114';'.'1,'111',4i,":4, °.e: % #1;C,`a"''ka .v='§;.:'m �"'�". N=z '5- *.6$,vuf"1,k 415 447) Co' ©2017 CliftonLarsonAllen LLP I 4 kllir S WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING , r Staff Licenses Licensee Details Licensee Information Name: CARTER, MICHAEL ERIC (Primary Name) Main Address: PO BOX 1076 LAKELAND Florida 33802 County: POLK License Mailing: LicenseLocation: 402 S KENTUCKY AVE #600 LAKELAND FL 33801 • County: POLK • License Information License Type: Certified Public Accountant Rank: CPA License Number: AC0011808 Status: Current,Active Licensure Date: 01/20/1983 Expires: 12/31/2018 Special Qualifications Qualification Effective Alternate Names View Related License Information View License Complaint (47) ©2017 CliftonLarsonAllen LLP I 5 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Licensee Details Licensee Information Arne: WILKERSON, WALKER D. (Primary Name) Main Address: 402 S KENTUCKY AVENUE SUITE 600 LAKELAND Florida 33801 County: POLK License Mailing: LicenseLocation: 402 S KENTUCKY AVENUE SUITE 600 LAKELAND FL 33801 County: POLK License Information License Type: Certified Public Accountant Rank: CPA License Number: AC0027344 Status: Current,Active Licensure Date: 11/30/1994 Expires: 12/31/2017 Special Qualifications Qualification Effective Alternate Names View Related License Information View License Complaint 445 ,r) coo, ©2017 CliftonLarsonAllen LLP I 6 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING ,f,,;;„2;,46 �s^�¢. � �a lr� ,� �./,r.� 9%Pf€es���rj .a 4,r��"..:q�'�.�.e, a: J 'R"'�7��. � //';� '• zh;%, N;,, � � ..( > k // ,per, �`;''2yP'�� fy^-�' F! SqF. �;,,/�/ 3M a: ,zea° a`7p ,/ R' '77, co -new A AAA, 0�d �s ir� f jr /,,` '„� tia:.,�, .� SA' ,,,a„"/,� ,/��.� AWA�ia=.;; .0 licensee Details Licensee Information Name: QUINLIN, BRIAN ALAN (Primary Name) Main Address: 435 SOUTH COMMERCE AVENUE SEBRING Florida 33870 County: HIGHLANDS License Mailing: LicenseLocation: 435 SOUTH COMMERCE AVENUE SEBRING FL 33870 County: HIGHLANDS License Information License Type: Certified Public Accountant Rank: CPA License Number: AC42476 Status: Current,Active Licensure Date: 05/12/2010 Expires: 12/31/2013 Special Qualifications Qualification Effective Alternate Names View Related License Information View License Complaint itt fr) r .4110 ©2017 CliftonLarsonAllen LLP ( 7 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING E. FIRM'S QUALIFICAITONS 1. Recent Governmental Experience Local Office Governmental Experience The following is a partial list of governmental entities that we have provided financial services for in the State of Florida within the last 5 years: Similar Florida Municipalities City of Arcadia—Shannon Huang(626) 574-5424 City of New Port Richey—Crystal Feast(727)853-1053 City of Avon Park—Julian Deleon (863)452-4400 Town of Redington Beach—Missy Clarke(727) 391-3875 City of Cape Coral—Margaret Krym (239)478-3029 City of Safety Harbor—June Solanes(727)724-1555x1222 City of Brooksville—Jim Delach (352)540-3810 City of Sanibel—Sylvia Edwards(239)472-9615 City of Fort Myers—Maria Joyner(239)321-7192 City of Temple Terrace—Ted Beason (832)693-6821 Town of Fort Myers Beach Amanda Anderson (239) City of Winter Haven—Debbie Tate(863)291-5667 756-0202 x135 City of Moore Haven—Maxine Brantly(863)946-0711 Florida Counties Glades County—Sandra Brown (863)946-6010 Lee County—Terry Mallow(239)533-2100 Citrus County—Robin Barclay(352)341-6449 Okeechobee County—Sharon Robertson (863)763-4559 Collier County—Crystal Kinzel (239)252-6299 Pasco County—Manny Long(358)521-4527 Hardee County—Vickie Rogers(863)773-4422 Polk County—DeeDee Beaver(863)534-6037 Highlands County—Sally Hood (863)402-6898 Sarasota County—Nicole Jovanovski (941)861-5184 Other Florida Government Entities Avon Park Housing Authority Hillsborough Area Regional Transit Authority Bartow Housing Authority Hillsborough County Aviation Authority Captiva Island Fire Control Key West Housing Authority Central Florida Regional Planning Council Lake Wales Housing Authority Collier Mosquito Control Matlacha and Pine Island Fire Control Clearwater Downtown Development Board Moore Haven Mosquito Control District Delray Beach Housing Authority Naples Airport Authority Englewood Water Pasco County Housing Authority Estero Fire District Pinellas Construction Licensing Board Hardee County Industrial Development Auth. Pinellas County Planning Council Hardee County School Board Internal Funds Pinellas County Metropolitan Planning Organization Hardee Soil and Water District Pinellas Suncoast Transit Authority Heartland Library Cooperative Polk Regional Water Cooperative Hendry County School District Internal Funds Sanibel Public Library Hernando County Housing Authority Sebring Airport Authority Highlands County Health Facility Authority South Fork Community Development District Highlands County Hospital District Tampa Bay Area Regional Transportation Authority „„:„ ©2017 CliftonlarsonAlien LLP I 8 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Single Audit Experience CLA has become the national leader in providing audit, tax and many other financial services to government entities similar to the City. Our client portfolio of government and nonprofit organizations represents nearly half of the firm's total revenues. You will benefit from CLA's experience in this area. As outlined in the following table, CLA performs more single audits annually than any other firm in the nation. We audited more than $27.3 billion dollars in federal funds . The table below illustrates CLA's experience in serving organizations that receive federal funds and demonstrates our firm's dedication to serving nonprofits and governmental organizations: Number of Single Audits Performed* CliftonLarsonAllen Plante Moran RSM Baker Tilly BKD I --_ KPMG --- i Brandi Pritchard CohnReznick Eide Bailly BDO 0 100 200 300 400 500 600 700 800 900 *The information for the firms above was pulled from the Federal Audit Clearinghouse for audits with fiscal year ends between January 1, 2015—December 31, 2015. In the current environment of increased oversight, it is more important than ever to find qualified auditors who have significant experience with federal grants specific to the City and can enhance the quality of the City's single audit. Therefore, the single audit will be performed by a team of individuals who are managed by personnel who specialize in single audits in accordance with OMB's UG and who will offer both knowledge and quality for the City As part of our quality control process, the single audit will he reviewed by a firm Designated Single Audit Reviewer. The AICPA clarified auditing standard, AU-C 801 "Compliance Audits" requires risk-based concepts to be used in all compliance audits including those performed in accordance with OMB UG. Our risk-based approach incorporates this guidance. The City needs an audit firm experienced in performing single audits and a familiarity with the specific programs in which you are involved. You will benefit from CLA's experience in this area! ati) fr) 60) ©2017 CliftonLarsonAllen LLP I 9 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING 2. Staff Training Programs Continuing Professional Education In order to maintain and expand our assurance expertise, we consistently provide continuing education for our professionals. Each member of our professional team, including principals, attends at least 40 hours of technical training annually. Updated information on recent changes in technical standards and regulations, as well as the firm's professional policies and procedures, is distributed to our team members on a regular basis. Individuals are required to familiarize themselves with all current changes in standards and procedures. CLA invests in our government practice by hiring high caliber professionals and providing additional training to develop and enhance our expertise. With seasoned experts, we provide valuable insight into your day-to-day operations and your accounting systems and controls. As described in Figure 1 below, CLA professionals are specifically trained in the industry at a level beyond our competitors. Our professionals focus When providing instruction in ` Our on-campus recruiting serving a specific industry.So, our basic CPA,consulting and aggressively seeks the team chosen to serve you is advisory classes,we tailor the individuals with industry continuously exposed to,and entire discussion,examples focused degrees and/or trained on issues impacting large and exercises to apply to backgrounds.We focus on governmental entities while clients in their specific identifying top candidates performing their day-to-day industry focus. for our government clients. work. Job • awing On-the-Job Tailored Specialized �r+e3tj � e�dayeesueedu �;, Training Training �"�' ; ,ir w,, Recruiting Figure 1. Effective Continuing Professional Education. Our greatest strength is the talent of our staff. Our professionals provide more efficient and effective services due to the new ideas they implement from our in-depth training and continuing professional education. CLA's Firm-wide training programs, include: • Learn. Designed for the CLA associate with little experience. This five-day conference is typically attended in the first year of employment. • Experience. Designed for the CLA associate with about one year of experience. This four-day conference is typically attended in the second year of employment. • Achieve. Designed for the CLA associate with about two years of experience.This four-day conference is typically attended in the third year of employment. • Propel. Designed for the CLA associate with about three years of experience. This four-day conference is typically attended in the fourth year of employment. 3. Firm's Depth in Governmental Audit Areas Our 600 state and local government professionals serve more than 2,000 local, county, and state government agencies. The public sector has been a primary focus for us for more than 60 years. We understand the legislative changes,funding challenges, compliance responsibilities, and risk management duties that impact our state and local government clients. ©2017 CliftonLarsonAllen LLP I 10 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING • Our government audit clients include: state departments, counties, cities, villages, towns, boards of education, public libraries, colleges, school districts, special taxing districts and authorities throughout the nation. With one of the largest public sector audit practices in the country, the members of our government services team have an extensive depth of experience auditing entities similar to the City. The following provides a partial list of governmental clients served by CLA for audit services: Municipalities City of Mesa,Arizona City of Decatur, Illinois City of Nogales,Arizona City of Galesburg, Illinois City of Scottsdale,Arizona City of Annapolis, Maryland City of Surprise,Arizona City of Redwood Falls, Minnesota City of Tucson,Arizona City of Rio Rancho, New Mexico City of Arvada,Colorado City of Alexandria,Virginia City of Greeley,Colorado City of Kenosha,Wisconsin City of Newark, Delaware City of Wauwatosa, Wisconsin Counties Gila County,Arizona Prince George's County, Maryland Adams County, Colorado Queen Anne's County, Maryland Arapahoe County,Colorado Mower County, Minnesota Boulder County, Colorado Washington County, Minnesota Polk County, Iowa Los Alamos County, New Mexico Champaign County, Illinois County of Northampton, Pennsylvania Anne Arundel County, Maryland Chippewa County, Wisconsin Baltimore County, Maryland LaCrosse County,Wisconsin Montgomery County, Maryland Polk County,Wisconsin States and Other Government Agencies Colorado Dept.of Labor and Employment Minnesota Housing Finance Agency Colorado Department of Transportation New Jersey Housing&Mortgage Finance Agency Governor's Office of Management& Budget, IL Memphis Housing Authority Commonwealth of Pennsylvania Wisconsin Housing& Economic Devlp.Authority State of South Carolina Central Arizona Water Conservation District California Housing Finance Authority Metropolitan Washington Airports Authority District of Columbia Housing Authority Washington Metropolitan Area Transit Authority Federal Housing Finance Agency Port Authority of the City of St. Paul, Minnesota Housing Authority of Baltimore City, MD Southwest Ohio Regional Transit Jefferson County Housing Authority,AL State Retirement Agency of Maryland Richmond Redevelopment& Housing Auth.,VA We understand that each governmental entity is unique, and that counties, states, and school districts each have unique characteristics compared to large municipalities. However, we believe it is critically important to demonstrate to you that CLA has the capacity and experience to serve all types of governmental engagements. Large public sector entities typically share certain similar qualities, such as complex IT and accounting systems, multi-layered reporting lines and chains of command, frequent and varied debt issuances, significant intergovernmental agreements, and autonomous component units that have unique relationships with the primary government. CLA and your proposed engagement team have the capacity and experience necessary to successfully monitor and deliver professional auditing experience the City. it" CIO ©2017 CliftonLarsonAllen LLP 11r: WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING 4. Firm's Commitment to Governmental Sectors CLA offers the credibility, reputation, and resources of a leading professional services firm — without sacrificing the small-firm touch. We bring unsurpassed levels of technical excellence, commitment, and dedication to our clients, which have made us one of the most successful CPA firms serving governmental entities. Our strong reputation for serving state and local government units provides the City the confidence in their decision to select CLA as their professional service provider. CLA has one of the largest governmental audit and consulting practices in the country, serving over 2,000 governmental clients nationwide. Public sector clients represent approximately one-third of all firm-wide revenue, and each of the government services team members are thoroughly versed in the issues critical to complex governmental entities. Percent of Total Revenue by Industry Sector Financial Institutions 8.35% Health Care Public Sector 2625% 13.24°l0 Private Sector 52.16% *Above chart is based on FY15 net revenue As a CPA firm experienced in serving state and local units of government, we are very aware of the financial and legal compliance requirements that government officials are faced with daily. This creates complexities and service issues within a unique operational and regulatory environment. Because of our experience, we have become adept at providing our clients with insights in this environment not typical of other CPA firms. 41)1 ©2017 CliftonLarsonAllen LLP I 12 J WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING 5. Participation in Governmental Associations, Organizations, and Regulatory Bodies Peer Quality Review In the most recent peer review report, we received a rating of pass, which is the most positive report a firm can receive. We are proud of this accomplishment and its strong evidence of our commitment to technical excellence and quality service. The full report is provided on the following page. The Public Company Accounting Oversight Board (PCAOB) conducts inspections of CliftonLarsonAllen's quality control procedures relating to audits of public companies, while the remainder of our assurance practice is peer reviewed under American Institute of Certified Public Accountants (AICPA) standards. PCAOB inspection reports are available on the PCAOB website. In addition to an external peer review, we have implemented an intensive internal quality control system to provide reasonable assurance that the firm and our personnel comply with professional standards and applicable legal and regulatory requirements. Our quality control system includes the following: • A quality control document that dictates the quality control policies of our firm. In many cases, these policies exceed the requirements of standard setters and regulatory bodies. Firm leadership promotes and demonstrates a culture of quality that is pervasive throughout the firm's operations. To monitor our adherence to our policies and procedures, and to foster quality and accuracy in our services, internal inspections are performed annually. • Quality control standards as prescribed by the AICPA. The engagement principal is involved in the planning, fieldwork, and post-fieldwork review. In addition, an appropriately experienced professional performs a risk-based second review of the engagement prior to issuance of the reports. • Hiring decisions and professional development programs designed so personnel possess the competence, capabilities, and commitment to ethical principles, including independence, integrity, and objectivity,to perform our services with due professional care. • An annual internal inspection program to monitor compliance with CliftonLarsonAllen's quality control policies. Workpapers from a representative sample of engagements are reviewed and improvements to our practices and processes are made, if necessary, based on the results of the internal inspection. • Strict adherence to the AICPA's rules of professional conduct, which specifically require maintaining the confidentiality of client records and information. Privacy and trust are implicit in the accounting profession, and CliftonLarsonAllen strives to act in a way that will honor the public trust. A requirement that all single audit engagements be reviewed by a designated single audit reviewer, thereby confirming we are in compliance with the standards set forth in the Uniform Guidance and OMB Circular A-133. 41/ (f) ©2017 CliftonLarsonAllen LLP I 13 er WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING0, •C Cherry Bekaert " WO CPAs ti Advisors System Review Report To the Principals of CliftonLarsonAllen LLP and the AICPA National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of CliftonLarsonAllen LLP (the `firm") applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended July 31, 2016. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable 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 therewith based on our review. The nature,objectives, scope, limitations of,and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included engagements performed under Government Auditing Standards. audits of employee benefit plans, audits performed under FDICIA, and examinations of service organizations[Service Organizations Control(SOC)1 and SOC 2 engagements]. In our opinion, the system of quality control for the accounting and auditing practice of CliftonLarsonAllen LLP applicable to engagements not subject to PCA.OB permanent inspection in effect for the year ended July 31, 2016, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. CliftonLarsonAllen LLP has received a peer review rating of pass. CLINY LLQ Cherry Bekaert LLP November 21,2016 ©2017 CliftonLarsonAllen LLP I 14 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Membership in the AICPA Government Audit Quality Center (GAQC) Because CLA is committed to quality audits for our government clients, we are = Governmental an active member of the Government Audit Quality Center (GAQC) of the mum Audit Quality Center American Institute of Certified Public Accountants (AICPA). Launched in September 2004, the mission of the GAQC is to raise awareness about the importance of governmental audits and to serve as a comprehensive resource on the topic for member firms. GAQC member firms must institutionalize annual internal inspection procedures, comply with continuing professional education requirements as set forth by Government Auditing Standards, and establish policies and procedures in compliance with GAQC recognized professional standards. We leverage our membership to access resources designed to enhance audit quality and to apply audit best practices. The GAQC provides the latest developments in accounting, auditing, and the various rules and regulations that affect governmental audits. CLA's participation in the GAQC is an indicator of our dedication to quality government audits. Additionally, members of our local Government Services Team are part of other associations, organizations and regulatory bodies that influence and affect the County. We are active in industry organizations, events, and knowledge sharing initiatives, and are involved in several boards and committees that help shape industry- specific practice standards. A sampling of industry organizations and regulatory bodies that our local Government Services Team members are active in includes: • 360 Degrees of Financial Literacy Committee • AICPA Audit Quality Center Executive Committee • AICPA Council • AICPA Government Accounting&Auditing Committee • AICPA Risk Assessment Audit Guide • AICPA Single Audit Quality Task Force • AICPA's Risk Assessment Audit Committee • AICPA's Governmental Audit Quality Center • AICPA's State and Local Government Expert Panel • Association of Government Accountants • Association of School Board Officials • Center for Public Company Audit Firms Peer Review Committee • Financial Accounting Standards Advisory Council • GFOA Special Review Executive Committee • Government Accounting Standards Advisory Committee • Government Finance Officers Association Our participation/membership in the aforementioned professional organizations, combined with various other technical services we subscribe to, allows use to be at the forefront of change in the government environment. We take seriously our responsibility for staying current with new accounting pronouncements, auditing standards, other professional standards and laws and regulations. Olt 4 ©2017 CliftonLarsonAllen LLP I 15 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING r • 6. Management Advisory Services In addition to the services outlined in the City's request for this proposal, CLA collectively offers a wide breadth of highly-customized services and capabilities to meet our clients' wants and needs, including a sampling of the following: • Financial statement and forensic audits • Fraud risk assessment and investigations • Internal audit, risk assessments, and evaluations • Strategic,financial, and operational consulting • Implementation assistance for complex accounting standards • Outsourced accounting and public administration • Information security assessments • Telecommunication audits • Strategic, business, and capital planning • Operational and financial systems consulting • Organizational and financial health assessment • Operations and performance improvement • Training and educational seminars We pride ourselves on taking the initiative to meet each and every need of our clients, and therefore are always prepared to take on additional projects. However, independence is our first concern when providing additional services. Independence can easily become impaired when providing consulting services; therefore, we do not provide any services to our audit clients beyond those allowed. If additional work is requested by the City outside of the scope of the audit, we will discuss with you our proposed fee for additional services prior to beginning the new services. 7. Experience with Issuance of Revenue and General Obligation Bonds Firm-wide, CLA's Public Sector clients have approximately 2,000 bond issues, including approximately 60 bond issues in Florida. The team assigned to your engagement has worked with ten counties (including Polk, Lee, Collier, and Sarasota), thirteen municipalities, and many special districts (including Hillsborough Aviation Authority). We have extensive experience accounting for and auditing revenue and general obligation bonds. During just the past five years, the team assigned to the Authority's engagement issued consent letters and/or audited the following new bond issues: Hillsborough Aviation Authority • $168,865,000 Subordinated Revenue Refunding Bonds, Series 2013A • $38,635,000 Revenue Refunding Bonds, Series 2013A • $35,235,000 Revenue Refunding Bonds, Series 2013B • $34,095,000 Revenue Refunding Bonds, Series 2013C Polk County • $53,630,000 Utility System Revenue and Refunding Bonds, Series 2013 • $41,740,000 Utility System Revenue and Refunding Bonds, Series 2014A, 2014B, and 2014C • $71,510,000 Public Facilities Revenue Refunding Bonds, Series 2014 • $18,157,000 Public Facilities Revenue Refunding Note,Series 2015 141 Eit) ©2017 CliftonlarsonAllen LLP ; 16 et, WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Sarasota County • $17,245,000 Second Guaranteed Entitlement Revenue Bonds,Series 2013 • $12,543,000 Revenue Note, Series 2013A • $35,600,000 Utility System Revenue Bonds, Series 2013 • $10,044,000 Revenue Note, Series 2014A • $9,255,000 Five Cent Local Option Fuel Tax Revenue Refunding Note,Series 2014 • $17,690,000 Communications Services Tax Revenue Refunding Note, Series 2014 • $37,355,000 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2014 • $33,490,000 Infrastructure Sales Surtax Revenue Refunding Bonds, Series 2015 Lee County • $53,755,000 Water and Sewer Bonds,Series 2013A • $39,440,000 Water and Sewer Refunding Revenue Bonds, Series 2013B • $12,590,000 Five Cent Local Option Gas Tax Refunding Revenue Bonds, Series 2014 Collier County • $89,780,000 Gas Tax Refunding Revenue Bonds,Series 2014 • $17,769,080 Collier County Water and Sewer Refunding Revenue Bonds,Series 2013 gbe 1 / ©2017 CliftonLarsonAllen LLP I 17 WEALTH ADVISORY I OUTSOURCING I AUDIT.,TAX,AND CONSULTING Or F. PERSONNEL QUALIFICAITONS An experienced engagement team has been aligned to provide the most value to your organization. The team members have performed numerous engagements The most important of this nature and will commit the resources necessary to provide top quality resource any business has service throughout the engagement. Each member of the engagement team has is people —the right at least six months experience and completed at least one city agency annual people. financial audit. Below are the proposed management team members followed by a listing of resumes for the City's engagement team stating information requested. Roles and Responsibilities Engagement Team Role Years of Experience Engagement Principal-in-Charge - Mike will have overall engagement responsibility for the City including planning the engagement, Mike Carter, CPA* developing the audit approach, supervising staff, and maintaining client 34 contact throughout the engagement and throughout the year. He is responsible for total client satisfaction through the deployment of all required resources for the City. Quality Assurance Principal - Walker will complete the quality review of all work performed and of all audit reports prior to issuance. The Walker Wilkerson, CPA* focus of this review is to confirm adherence to industry and firm quality 22 control guidelines and to make sure the work performed supports the audit opinions issued. Engagement Manager - Brian will be the manager for the City's audit Brian Quintin, CPA* engagement. He will assist the engagement principal with planning the 13 engagement and performing complex audit areas. Brian will also perform a technical review of all work performed. Senior Auditor - Tim will be responsible for the day to day activities, Tim Jickell, M.A. 4 including the supervision of all staff assigned. IT & Risk Management Manager - Jim will assist the audit team in James Barton III, CISA documenting and evaluating general computer controls and IT 16 application controls. *Licensed to practice as a CPA in Florida 0 0 4:11` ©2017 CliftonLarsonAllen LLP I 18 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Biographies Michael E. Carter, CPA CliftonLarsonAllen LLP CliftonLarsonAllen Engagement Principal-in-Charge 863-680-5614 Home Office: Lakeland, Florida Mike.Carter@CLAconnect.com Profile 1.1 Michael (Mike) is a principal in CLA's state and local government group. He has 34 years of accounting and audit experience. Mike has received the AICPA Certificate of Educational Achievement in Governmental Accounting and Auditing. During this time, he has served 6 Florida counties, several cities, and numerous special districts. The majority of the larger governments served by him require federal and/or state single audits. Technical/Client Experience During his career, Mike has provided audit and accounting services to many governments including: • City of Largo * • Polk County* • City of Winter Haven* • Highlands County * • City of Temple Terrace* • Okeechobee County • City of Avon Park • Hardee County • Town of Redington Beach • Pasco County* —CAFR preparation • City of Port Richey • Citrus County—outsourced internal • City of Brooksville • Central Florida Regional Planning • Water Cooperative of Central Florida • Sebring Airport Authority • Highlands County Industrial Development • Highlands County Hospital District • Hardee County Economic Development Auth • Pinellas County Planning Council • Hardee County Industrial Development Auth • Hardee County Indigent Health Care • Pinellas County Metropolitan Planning Org • Heartland Library Cooperative • Gainesville Housing Authority • Key West Housing Authority • Delray Beach Housing Authority • Fulton County Housing Authority • Monroe County Housing Authority • West Palm Beach Housing Authority • Montgomery Housing Authority • Many other Special Districts *Receives the GFOA Certificate of Achievement for Excellence in Financial Reporting Education/Professional Involvement • Bachelor of Science in Accounting, University of Florida • Certified Public Accountant licensed by the State of Florida -January 1983 • American Institute of Certified Public Accountants • Florida Institute of Certified Public Accountants—Past President Ridge Area Chapter • Government Finance Officers Association • Florida Government Finance Officers Association • Florida Association for Housing Related Officials • Ridge League of Cities Continuing Professional Education • Mike attends a minimum of 20 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, resulting in 120 hours for three-year requirement. His detailed CPE for the past 3 years in located in Appendix A: Continued Professional Education. f/ ©2017 CliftonLarsonAllen LLP I 19 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Walker D. Wilkerson, CPA, MBA el CliftonLarsonAllen LLP CliftonLarsonAlten Quality Assurance Principal 863-680-5639 Home Office: Lakeland, Florida Walker.Wilkerson@CLAconnect.com Profile Walker is the firm-wide Managing Principal for Assurance Methodology and is a technical 40 reviewer for CLA's assurance and accounting quality group. He has 25 years of public auditing j experience with a focus on governmental entities and nonprofit organizations. Walker currently serves as a member of the AICPA's State and Local Government Expert Panel. Walker is also a reviewer for the GFOA Certificate of Excellence in Financial Reporting program. In addition, Walker has served as an adjunct professor at Florida Southern College teaching a variety of accounting courses. Technical/Client Experience Walker's focus is in assurance and accounting quality reviews and has performed quality reviews for hundreds of state and local governments across the country. He has provided auditing services to a large array of clients including: governmental entities, nonprofit organizations, workforce development boards, for profit entities, pension plans and funds, and housing authorities. During his career, Walker has provided client services leadership for the following engagements: • Aitkin Public Utilities Commission • Highlands County* • Brainerd Public Utilities • Okeechobee County* • City of Austin Utilities • Sarasota County • Madelia Municipal Light and Power • City of Avon Park • Sauk Centre Public Utilities Commission • City of Moore Haven • Polk County* • City of Winter Haven* • Collier County* • Central Florida Regional Planning Council* • Highlands County • Lake Region Lakes Management District • Lee County • Pinellas Planning Council • Manatee County • Polk County Workforce Development Board *Receives the GFOA Certificate of Achievement for Excellence in Financial Reporting Education/Professional Involvement • Bachelor of Science in Business Administration,The Citadel • Master of Business Administration, Florida Southern College • Certified Public Accountant licensed by the State of Florida • American Institute of Certified Public Accountants, State and Local Government Expert panel • Florida Institute of Certified Public Accountants • Government Finance Officers Association • Florida Government Finance Officers Association • Florida Association for Housing Related Officials Continuing Professional Education • Walker attends a minimum of 20 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, resulting in 120 hours for three-year requirement. His detailed CPE for the past 3 years in located in Appendix A: Continued Professional Education. 41115 co) ©2017 CliftonLarsonAllen LLP I 20 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING I Brian A. Quinlin, CPA, MBA 0 CliftonLarsonAllen LLP CliftonLarsonAllen Engagement Manager 863-385-1577 Home Office: Sebring, Florida Brian.Quinlin@claconnect.com Profile 44 4451 Brian is an engagement manager with CLA's Public Sector Group. He has over 13 years of experience serving Florida nonprofit and government clients. The majority of the larger ' ,, governments served by him require federal and/or state single audits. W Technical/Client Experience Brian has over 13 years of public accounting experience and over eight years of supervisory experience. During his career, Brian has provided services for the following government engagements: • Highlands County* • City of Arcadia • City of Avon Park • Town of Lake Placid • Collier County Clerk of the Circuit Court • Okeechobee County • Hardee County • Heartland Library Cooperative • Glades County Clerk of Court • Lee County Clerk of the Circuit Court • Hardee County Schools Internal Funds • Jefferson County Housing Authority • Highlands County Soil &Water Conservation • Lake Wales Housing Authority • Highlands County Health Facilities Authority • Housing Authority of Avon Park • Monroe County Housing Authority • Housing Authority of Bartow • Housing Authority of the City of Key West • Arcadia Housing Authority • Housing Authority of the City of Lakeland • Delray Beach Housing Authority • Housing Authority of the City of Sarasota • Winter Haven Housing Authority *Receives the GFOA Certificate of Achievement for Excellence in Financial Reporting Education/Professional Involvement • Bachelor of Business Administration, Morehead State University • Master of Business Administration, Nova Southeastern University • Certified Public Accountant in the State of Florida • American Institute of Certified Public Accountants • Florida Institute of Certified Public Accountants Continuing Professional Education • Brian attends a minimum of 20 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, resulting in 120 hours for three-year requirement. His detailed CPE for the past 3 years in located in Appendix A: Continued Professional Education. 5 0 Ed . ©2017 CliftonLarsonAllen LLP I 21 WEALTH ADVISORY I OUTSOURCING I AUDIT,iAX,AND CONSUL1ING �` Timothy J. Jickell, M.A. pcliftonLarsonAllen CliftonLarsonAllen LLP Senior Auditor 863-680-5641 Home Office: Lakeland, Florida Timothy.Jickell@CLAconnect.com Alt Profile ?` Tim is a senior in CLA's Lakeland office. He has 4 years of experience of providing assurance services to clients of varying sizes, with a primary focus on state and local governments. Tim t. attends training related to governmental topics to stay current on regulatory updates and changes. Technical/Client Experience During his career,Tim has provided services for the following engagements: • City of Winter Haven* • City of Brooksville • Polk County Board of County • Central Florida Regional Planning Council* • Hardee County Sheriff's Office • Hardee County Board of County Commissioners • Hardee County Property Appraiser • Hardee County Tax Collector's Office • Hardee County Supervisor of Elections • Hardee County Soil and Water District • Citrus County—outsourced internal audit • Hardee County Industrial Development *Receives the GFOA Certificate of Achievement for Excellence in Financial Reporting Education/Professional Involvement • Bachelor of Science in Accounting, Southeastern University • Masters of Science in Accounting, Grand Canyon University • American Institute of Certified Public Accountants • Florida Institute of Certified Public Accountants • Florida Government Finance Officers Association Continuing Professional Education • Tim attends a minimum of 20 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, resulting in 120 hours for three-year requirement. His detailed CPE for the past 3 years in located in Appendix A: Continued Professional Education. 1:144 ©2017 CliftonLarsonAllen LLP I 22 vitk WEALTH ADVISORY I OUTSOURCING I AUDIT,IP X,AND CONSUUINC James W. Barton, III, CISA, PCI-QSA CliftonLarsonAllen LLP CliftonLarsonAllen IT& Risk Management Manager 863-680-5640 Home Office: Lakeland, Florida Jim.Barton@CLAconnect.com Profile Jim is a member of the information security services group (ISSG) at CLA which provides security-focused consulting services. He has been with CLA for 6 years and has more than 15 years of professional auditing experience in the public sector providing consulting services in network management and end-user support with experience covering project management, business management, and service delivery. Jim served as an IT Director for a regional CPA firm before joining CLA. Technical/Client Experience Jim has overseen projects ranging from system selection to the design and installation of local and wide area networks. He has client experience using the following accounting software products: Oracle, SunGard Public Sector (NaviLine), Great Plains, Peoplesoft, Integrated Financial Accounting System (iFAS), and others. Jim has tested the performance of IT general controls, SSAE16 IT testing, external penetration testing, and internal vulnerability assessments. He has served on the following engagements: • Polk County BOCC* • Polk County Sheriff's Department • City of Cape Coral* • Hillsborough Transit Authority (HART)* • City of Dunedin* • Hillsborough County Aviation Authority • City of Winter Haven* • Okeechobee County* • Collier County* • Pinellas Suncoast Transit Authority* (PSTA) • Federal Government • Sarasota County* • Hardee County • Union County, NC • Highlands County • US Department of Veterans Affairs *Receives the GFOA Certificate of Achievement for Excellence in Financial Reporting. Education/Professional Involvement • Certified Information Systems Auditor(CISA)since 2013 • Degree in Computer Electronics and Networking Technology from the Florida Career Institute • West Florida Chapter of ISACA, a worldwide association of information security professionals • Certified Payment Card Industry • Qualified Security Assessor(PCI-QSA) Continuing Professional Education • Jim attends a minimum of 20 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, resulting in 120 hours for three-year requirement. His detailed CPE for the past 3 years in located in Appendix A: Continued Professional Education. 5 fr) ©2017 CliftonLarsonAllen LLP I 23 fort WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Continuing Professional Education In order to maintain and expand our assurance expertise, we consistently provide continuing education for our professionals. Each member of our professional team, including principals, attends at least 40 hours of technical training annually. Updated information on recent changes in technical standards and regulations, as well as the firm's professional policies and procedures, is distributed to our team members on a regular basis. Individuals are required to familiarize themselves with all current changes in standards and procedures. CLA invests in our government practice by hiring high caliber professionals and providing additional training to develop and enhance our expertise. With seasoned experts, we provide valuable insight into your day-to-day operations and your accounting systems and controls. As described in Figure 2 below, CLA professionals are specifically trained in the industry at a level beyond our competitors. Our professionals focus on When providing instruction in Our on-campus recruiting serving a specific industry.So, our basic CPA,consulting and aggressively seeks the team chosen to serve you is advisory classes,we tailor the individuals with industry continuously exposed to,and entire discussion,examples focused degrees and/or trained on issues impacting large and exercises to apply to backgrounds.We focus on governmental entities while clients in their specific identifying top candidates performing their day-to-day industry focus. for our government clients. work. Job raining On-the-Job p Tailored d-, �� � ..°, Specialized Ecru n; ak, li Training �"` `° " Recruiting Training sbr �f4 Figure 2. Effective Continuing Professional Education. Our greatest strength is the talent of our staff. Our professionals provide more efficient and effective services due to the new ideas they implement from our in-depth training and continuing professional education. CLA's Firm-wide training programs, include: • Learn. Designed for the CLA associate with little experience. This five-day conference is typically attended in the first year of employment. • Experience. Designed for the CLA associate with about one year of experience.This four-day conference is typically attended in the second year of employment. • Achieve. Designed for the CLA associate with about two years of experience. This four-day conference is typically attended in the third year of employment. • Propel. Designed for the CLA associate with about three years of experience. This four-day conference is typically attended in the fourth year of employment. 015 (7) f:d) ©2017 CliftonLarsonAllen LLP I 24 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING / • Continuity of Staff It is our policy to maintain the same staff on engagements throughout the entire contract to ensure continuity and efficient service to the client. For the City, this means a consistent flow of staff knowledge and services over the engagement. This commitment is made possible by CLA consistently maintaining high staff retention rates and by giving considerable attention to the career development and progression of our professional staff; all of which we contend is a strong predictor of service quality. Figure 3 below shows that CLA's staff retention rates compared to the industry average. Stall Retention Comparison 90 ..._.--..._ 81.1% 87.3% 86.4% 85 64 4, a1 s o z1 UUU a) 80 75 a 70 65 60 .e?" 2014 2015 2018 _Th O O i'. Industry average* CliftonLarsonAllen 'Industry average for professional services firms exceeding$100 million in revenue. Figure 3. Staff Retention Comparison. Due to CLA's high staff retention rates, our firm can ensure the City excellent continuity and availability of personnel familiar with your organization at all times Furthermore, because we are such a large firm with a large state and local government practice,the majority of our assurance professionals work on government client engagements, either on a regional or local office basis. In addition, many of our professional staff chose to specialize in serving state and local government entities.As a result, every member of your engagement team both now and in the future will have experience auditing government entities similar to the City, and the necessary drive to provide exemplary services. P115 10:::,0) ©2017 CliftonLarsonAllen LLP I 25 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING G. AUDIT APPROACH Work Plan Many organizations view an audit as a requirement that doesn't contribute to their overall operations or value. At CLA, we believe an audit should be an annual check-up that allows us to have insight into your organization and to share in-depth advice on how to improve your operations. Our industry experience makes it easier — CLA auditors are experienced in your industry, which allows us to make the process faster and smoother. We approach our client engagements with a commitment to operational efficiency and to leverage our industry-focused experience to bring positive impact and meaningful insights to our clients. What does this mean for your organization? It means we bring a team of professionals and an approach focusing on you, our client, listening to and working with you for a successful outcome. Your time has value — Our approach recognizes that your time is valuable and best spent with key decision makers asking clarifying questions, discussing organizational strategies, and dealing with sensitive reporting issues. We believe this approach is effective and cost-efficient, produces a quality audit, provides you with substantive discussions with our team leaders, and recognizes there is more value to time spent discussing significant issues with management than reviewing detailed work papers. No surprises — Our experience enables us to focus on the areas of your organization that possess the greatest risk. Our emphasis on planning and communication allows for an efficient and effective audit process in which everyone involved knows their roles and expectations. Issues, as they arise, are dealt with immediately, not accumulated until the end of the audit. We provide a "no surprises" approach to our services, based on frequent and timely communication. As potential issues arise during the course of the audit, we will engage the right people in timely and frank discussions as a means of gaining resolution immediately. Significant involvement of managers, directors and principals — An important distinction between CLA and other firms is the amount of director, principal and manager involvement in the engagement. Because our managers, directors and principals are directly involved in the engagement during fieldwork, we can proactively identify significant issues immediately and resolve them with management so that the engagement is essentially complete when fieldwork ends. • • • • We select a team experienced Our planning process involves reviewing prior in transitioning new clients— year workpapers,using workpapers routinely this provides an effective bridge. prepared as part of your monthly close process and sharing templates we have developed for your industry. We mitigate transition issues • We providi ytlu'Viiit iHeife sive listing of Wt%'spef► ;: otta" L gar ng necessary information in the early planning understanding of your organization phase of your engagement,giving you and forming relationships. adequate time to gather necessary information. A simple transition — We recognize changing accounting firms presents an opportunity as well as a challenge. Our approach deliberately and effectively minimizes the impact of transition. ott (7) ©2017 CliftonLarsonAllen LLP 26 tt WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSUL1ING • We tailor the audit just for you — We begin the audit with a thorough planning and preparation phase and culminate with the timely delivery of our reports. We will work with you immediately to coordinate and schedule the engagement to minimize any potential disruptions to your business. We would envision that we immediately begin our planning process upon receipt of a signed engagement letter. We will then work with you to finalize dates that accommodate your schedules. While our audit programs provide typical approaches for given audit areas, CLA tailors and designs a client-specific, risk-based audit approach. We don't follow a "cookie cutter" approach. We use custom, industry-tailored programs, procedures, and other tools that are designed specifically to focus on the issues that are applicable to government industry. We explain exactly what we're doing and what we've found in plain, everyday language. We translate our findings into ideas on how you can address them. We believe our services are a contributing factor to better business and administrative practices. We gain a better understanding of your organization by working closely with your staff. This involvement enables us to offer you recommendations or suggestions for improvement in your systems and procedures that are more comprehensive, better understood, and more frequently implemented. Financial Statement Approach The CLA audit methodology utilizes a five phase approach: tit Iki Phase I Phase 2 Phase 3 Phase 4 Phase 5 Planning Systems Testing and Reporting and Assessment and Strategy Evaluation Analysis Follow-Up When performing an audit, we are sensitive and understanding of the fact that we report to those charged with governance. We maintain objectivity and independence in order to be able to issue our audit opinions. We will act within our philosophy of total client service, maintain the professional relationship refined with management, and fulfill our responsibilities with the utmost professionalism. We understand that, in the past, the internal audit department has provided approximately 400 hours of assistance to the external auditors. If this is the case in the future, some of the procedures described in the segments below would be performed by internal audit, as agreed to at the beginning of the engagement. 11111115 () ©2017 CliftonLarsonAllen LLP I 27 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONST A TNG �` Proposed Segmentation of the Engagement Assessment `i7 The continuous communication phase of an engagement starts when an engagement contract is issued and continues throughout the year. We believe effective communication is critical to ,q,.....,,,, , , , successfully serving the City. This communication includes the exchange of ideas and advice as changes are considered or implemented by the City or the accounting profession. We will meet with the City personnel to discuss our plan to start the work and to further discuss the audit process. As it will be discussed in more detail in the "Planning and strategy" section, a formal entrance conference will be held with representatives from the Audit Committee, the Finance Department, and other departments as appropriate to discuss risks, concerns, expectations, audit applications, and audit protocol. In addition, through all phases of the audit, we believe it is important to have regular communication with the City to discuss the status of the engagement. We will provide timely communication of any critical issues, concerns, and potential findings with the person primarily responsible for the subject matter and to inform our audit liaison. During audit fieldwork, we will meet with management on a weekly basis. During these weekly status meetings, we will discuss the following to foster agreement on all fact patterns: potential deficiencies or audit adjustments, pending requested information, technology questions, progress of the audit, and other milestones and deliverables. Year-long Support. We encourage your staff to take advantage of our accessible staff throughout the year for questions that may arise. Our people, working 'with you and your staff, can provide proactive advice on new accounting or GAAP pronouncements and their potential impact; help with immediate problems including answers to brief routine questions; and share insights and best practices to assist you in planning for your future success. Planning and Strategy _r The main objective of the planning phase is to identify significant areas and design efficient audit procedures. We will accomplish our planning by following the methodology below: ‘41.0e, • Conduct an entrance meeting with representatives from the City — the engagement team will meet with City personnel to mutually agree on an outline of responsibilities and timeframes.The agenda will include but not be limited to the following: - Establish audit approach and timing schedule, - Assistance to be provided by City personnel, - Application of generally accepted accounting principles, - Initial audit concerns, - Concerns of the City management, - Establishment of report parameters and timetables, - Progress reporting process, and - Establish principal contacts for key areas. • Update our understanding of the operations of the City, including any changes in its organization, management style, and internal and external factors influencing the operating environment. We will utilize reference materials such as the budget and related materials, organizational charts, manuals and programs, and financial and other management Information Systems (IS). • Identify significant accounts and accounting applications, critical audit areas, significant provisions of laws and regulations, and relevant controls over operations. • Determine the likelihood of effective IS-related controls. • Perform a preliminary overall risk assessment. G(!1 ©2017 CliftonLarsonAllen LLP I 28 140,, WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND(:ONSULTING • Confirm protocol for requesting information from and meeting with accounting and finance staff. • Establish a timetable for the fieldwork phase of the audit. • Determine a protocol for using Interactive Data Extraction and Analysis (IDEA), our data extraction and analysis software,to facilitate timely receipt and analysis of reports from management. • Compile an initial comprehensive list of items to be prepared by the City and establish mutually agreed upon deadlines. We will document our planning through preparation of the following: • Entity Profile. This profile will help us gain an understanding of City activities, organizational structure, services, management, key employees, and regulatory requirements. We will utilize organizational charts,the prior year audited financial statements, and enabling legislation to perform this procedure. • Preliminary Analytical Procedures. These procedures will assist in planning the nature, timing, and extent of auditing procedures that will be used to obtain evidential matter. They will focus on enhancing our understanding of the financial results and will be used to identify any significant transactions and events that have occurred since the last audit date, as well as, to identify any areas that may represent specific risks relevant to the audit. We will utilize budgets, prior year financial information, and operational reports to perform these procedures. • General Risk Analysis. This will contain our overall audit plan, including materiality calculations, fraud risk assessments, overall audit risk assessments, effects of our IS assessment, timing, staffing, client assistance, a listing of significant provisions of laws and regulations, and other key planning considerations. • Account Risk Analysis. This document will contain the audit plan for the financial statements, including risk assessment and the extent and nature of testing by assertion. • Prepared by Client Listing. This document will contain a listing of schedules and reports to be prepared by City personnel,with due dates for each item. One of the key elements in the planning of this audit engagement will be the heavy involvement of directors and managers. We will clearly communicate any issues in a timely manner and will be in constant contact with the City as to what we are finding and where we expect it will lead. We will develop our audit programs during this phase. Utilizing the information we have gathered and the risks identified, we will produce an audit program specifically tailored to the City. This program will detail, by major section, the nature and types of tests to be performed. We view our programs as living documents, subject to change as conditions warrant. Systems Evaluation During the systems evaluation phase, we will gain an understanding of the internal control structure of the City for financial accounting and relevant operations. Next, we will identify objectives for each type of control that is material to the financial statements and then identify and gain an understanding of the relevant control policies and procedures to effectively achieve the control objectives. Finally, we will evidence whether the key controls over significant transaction cycles of the organization are designed and operating as intended by performing walkthroughs of a limited number of transactions within the cycle. This phase of the audit will include testing of controls: • Over electronic data, including general and application controls reviews and various user controls • Over financial reporting and compliance with laws and regulations g..) Ed ©2017 CliftonLarsonA!len LLP I 29 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING One of our audit efficiency initiatives is to rely on internal controls when appropriate and to creatively look at internal control testing to make it as efficient as possible. This means not routinely performing detailed tests of transactions using large samples. We first seek to identify key controls, and then identify possible testing through alternative methods such as observation, interviews, and re-performance. These tests serve not only to gather evidence about the existence and effectiveness of internal control for purposes of assessing control risk, but also to gather evidence about the reasonableness of an account balance. We will also develop our internal control tests to assess the compliance with certain provisions of debt covenants, laws, regulations, contracts, and grants for which noncompliance could have a direct and material effect on the determination of financial statement amounts. Our use of multi-purpose tests allows us to provide a more efficient audit without sacrificing quality. Our assessment of internal controls will help us determine whether the City has established and maintained internal controls to provide reasonable assurance that the following objectives are met: • Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets • Assets are safeguarded against loss from unauthorized acquisition,use, or disposition • Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements During the internal control phase, we will also perform a review of general and application information system (IS) controls for the applications that are significant to financial statements. CLA will conclude whether IS general controls are properly designed and operating effectively and consider application controls as part of the internal control assessment in the financial statement audit. Our strategy for the IS review of the applications will involve reviewing all of the general control activities, including the computerized and manual processes. We will determine the scope of work by applying the concepts of materiality and risk assessment to effectively reduce examination inefficiencies. When planning this examination, we will gain an understanding of City operations by reviewing its current controls and control objectives as documented, and will also review prior years audit work and the status of corrective actions. Based on our preliminary review, we will perform an initial risk assessment of each critical element in each general control category, as well as an overall assessment of each control category. We will then process to assess the significant computer-related controls. For those IS controls that we deem to be effectively designed, we will perform testing to determine if they are operating as intended through a combination of procedures including observation, inquiry, inspection, and re- performance. For IS controls that we deem to be ineffectively designed or not operating as intended, we will gather sufficient evidence to support appropriate findings and will provide recommendations to improve internal controls. We will finalize our audit programs during this phase. We will also provide an updated Prepared by Client Listing based on our test results and our anticipated substantive testing. IF P;) (r) ©2017 CliftonLarsonAllen LLP 30 or WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Testing and Review The extent of our substantive testing will develop by utilizing information from the results of our internal control assessments. After identifying individually significant or unusual items, �, we will decide on the audit approach for the remaining balance of items by considering tolerable error and audit risk. This may include (1)testing a sample of the remaining balance; (2) lowering the previously determined threshold for individually significant items to increase the percent of coverage of the account balance; or (3) applying analytical procedures to the remaining balance. When we elect to sample balances,we will use IDEA to efficiently control and select our samples, if appropriate. Our work papers during this phase will clearly document our work as outlined in our audit programs. We will also provide the City with status reports during the course of the audit fieldwork. As in all phases of the audit, we will be in communication with all parties to maintain that all identified issues are resolved in a timely manner. We will also hold a final exit conference with stakeholders to summarize the results of our fieldwork and review significant findings. -. Reporting and Follow-Up Reports to management will include oral and/or written reports regarding: viii..41) • Independent 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 • Independent Auditor's 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 • Independent Auditor's Report on Compliance for Each Major Federal Program and State Financial Assistance Project; and Report on Internal Control Over Compliance; and Report on the Schedule of Expenditures of Federal Awards and State Financial Assistance Project Required by the Uniform Guidance and Chapter 10.550 Rules of the Auditor General. • Management Letter pursuant to Chapter 10.550, Rules of the Auditor General of the State of Florida • Independent Accountants' Report on the City's compliance with Chapter 218.415, Florida Statutes • Written Communication to Those Charged with Governance,which includes the following areas: — Our responsibility under auditing standards generally accepted in the United States of America — Changes in significant accounting policies or their application -- Unusual transactions - Management judgments and accounting estimates — Significant audit adjustments - Other information in documents containing the audited financial statements — Disagreements with management, if any - The consultations with other accountants, if necessary — ' Major issues discussed with management prior to retention — Difficulties encountered in performing the audit, if any — Fraud or illegal acts, if any 111114 0 ©2017 CliftonLarsonAllen LLP I 31 S it WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING • Once the final reviews of work papers and financial statements are completed, which is a process that actually starts while the fieldwork is in process, our opinion, the financial statements, and management letter will be issued. We will provide the City a draft of any comments that we propose to include in the management letter, enabling you to review the comments for accuracy prior to final release. Any items that come to our attention that are not what we consider major items may be discussed verbally with management and not included in the management letter. Single Audit Approach Should the City require a Single Audit, CLA follows a standardized Single Audit testing approach. In the current environment of increased oversight, it is more important than ever to find qualified auditors who have significant experience with federal and state grants specific to the City and can maintain the quality of the City's Single Audit. Therefore, the Single Audit will be performed by a team of individuals who are managed by personnel who specialize in Single Audits in accordance with the Uniform Grant Guidance (2 CFR Part 200, Subpart F) and the Florida Single Audit Act (Section 215.97, Florida Statutes) and who will offer both knowledge and quality for the City. As part of our quality control process, the single audit will be reviewed by a firm Designated Single Audit Reviewer(DSAR). The AICPA issued guidance in AU-C Section 935 — "Compliance Audits" requires risk-based concepts be used in all compliance audits including those performed in accordance with the Uniform Grant Guidance. Our risk-based approach incorporates this guidance. In years that a Single Audit is required, if applicable, we will conduct our audit in three primary phases, as illustrated in Figure 4 below: (Th I " n.3 Risk Major Final Assessment Program Assessment and Planning Testing and Reporting Figure 4. Tailored Single Audit Approach. CLA understands that each contract/grant agreement is as unique as each governmental entity. Therefore, we tailor our audit procedures to match each client's risks. Phase 1: Risk Assessment and Planning The risk assessment and planning phase will encompass the overall planning stage of the Single Audit engagement. During this phase, we will work closely with the City's management to determine that programs and all clusters of programs are properly identified and risk-rated for determination of the major programs for testing. We will also review the forms and programs utilized in the prior year to determine the extent of any changes which are required. 48.5 (1) 0;0) ©2017 CliftonLarsonAllen LLP I 32 (ir WEALTH ADVISORY i OUTSOURCING I AUDIT,TAX,AND CoNSUCIINU • We will accomplish this by following the methodology below: • Determine the threshold to distinguish between Type A and B programs, including the effect of any loans and loan programs. • Utilizing the preliminary Schedule of Expenditure of Federal Awards and State Financial Assistance,we will identify the Type A and Type B programs in accordance with the Uniform Grant Guidance and Florida Single Audit requirements. • Identifying the programs tested and the findings reported for the past two fiscal years. Determine and document the program risk based on the past two Single Audits. • Distribute Type B program questionnaires to determine risk associated with Type B programs. • Determine major programs to be tested for the current fiscal year based on the previous steps. • Assess compliance and internal controls over compliance for each major program identified against the proper regulations (Circulars vs. Uniform Grant Guidance and State Compliance Supplement). • Prepare and distribute templates to the City's management to obtain an update on the status of prior year findings. Phase 2: Major Program Testing We will determine the programs to be audited based on the risk assessment performed in the planning phase. We will perform the audit of the programs in accordance with the proper regulations (Circulars vs. Uniform Grant Guidance) and the Rules of the Auditor General. To accomplish this, we will perform the following: • Schedule an introductory meeting and notify the City's management of the major programs. • Plan and execute the testing of the expenditures reported on the Schedule of Expenditures of Federal Awards and State Financial Assistance. • Perform tests of compliance and internal controls over compliance for each major program. • Conduct entrance and exit conference meetings with each grant manager. Phase 3: Final Assessment and Reporting We will re-perform the steps noted in the preliminary assessment and planning stage once the final Schedule of Expenditures of Federal Awards and State Financial Assistance is received to determine if additional major programs were identified. Based on the final determination of the programs we will perform the following: • Identify Type A and Type B programs which were not previously identified. • Re-assess the risk and determine if we are required to audit additional programs. • Perform compliance testing at the entity wide level related to procurement and cash management requirements. • Perform testing to validate the status of prior year findings for programs riot selected for audit. • Prepare the Schedule of Findings and Questioned Costs. • Conduct exit conference with the City's management to review drafts of required reports. • Submit Data Collection Form to the Federal Clearinghouse. Throughout the Single Audit, we will maintain communication through periodic progress meetings with those designated by the City. These meetings will be on a set schedule, but as frequently as the City determines. During these meetings, we will discuss progress impediments and findings as they arise. Planned Use of Specialists We do not intend on hiring specialists for this engagement. 4 ©2017 CliftonLarsonAllen LLP 33 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Ability to Complete Audits on Schedule While our size and depth of resources allow us to conduct several audits at the same time, we also realize that the timely completion and issuance of the audit is an integral part of the overall service experience. The quality of the work may be exceptional, yet if it takes too long, the value of that service is lost. Conversely, we have seen the audit work completed in a very short period of time at the expense of quality. From working with our many local municipalities and counties, we know they expect quality services provided in a timely manner. That's no different than what they provide to their customers. Our goal is to begin the audit when the client is ready. We provide advance work letters, "to-do" lists, and whatever we can — up front—to insure once the audit starts, it will be done efficiently and effectively. Once we leave the client, our goal is to issue the final audit reports according to your timetable. This requires a lot of coordination of activities with our clients, but we have found this to be a good balance in providing quality and timely services. Staff and Hours for Each Proposed Segment of the Engagement The following chart provides a breakdown of the estimated hours by staff levels: Director& Segment Managers Senior Associate Admin Totals Principals FINANCIAL STATEMENT AUDIT Planning 6 10 20 20 - 56 System Evaluation and Control 8 12 20 20 - 60 Testing Testing and Analysis 12 24 80 80 - 196 Reporting and Follow up 12 16 24 4 4 60 124 4 372 Director& Segment Managers Senior Associate Admin Totals Principals SINGLE AUDIT Planning 1 1 2 - - 4 System Evaluation and Control 1 1 4 3 - 9 Testing Testing and Analysis 1 2 7 7 - 17 'TOTALS(1 Program) 3 4 3s BP� Sample Sizes and the Extent Statistical Sampling is to be Used We extensively use statistical and non-statistical sampling during our audits of governmental entities. The sampling techniques vary depending upon the nature of the test, such as internal control reliance, substantive testing and transactional testing. Our sample sizes are directly related to the various risks (inherent and control) associated with the item being tested, confidence level to be obtained and overall materiality. Our sample sizes generally include up to 30 items for control and transactional testing. The samples for substantive testing are highly dependent upon the balance of the account being tested and the materiality of the engagement. (7) CA) ©2017 CliftonLarsonAllen LLP I 34 A. Nur WEAUH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSUf.TIN We plan to determine the scope of work by applying the concepts of materiality and risk assessment to effectively reduce examination inefficiencies. Our strategy for the electronic data processing (EDP) review of the applications will involve reviewing all of the general control activities, including the computerized and manual processes. During the planning phase of the engagement, we will confirm our understanding of the City's operations by reviewing your current controls and control objectives as documented. We will also review prior years' audit work and the status of corrective actions. Based on our preliminary review, we will perform an initial risk assessment of each critical element in each general control category, as well as an overall assessment of each control category. We will also develop preliminary estimates of materiality to assist in developing our audit plan. We will then proceed to assess the significant computer-related controls. For those controls that we deem to be ineffectively designed or not operating as intended, we will gather sufficient evidence to support appropriate findings and to provide recommendations to improve internal controls. For those controls we deem to be effectively designed, we will perform testing to determine that they are operating as intended through a combination of procedures, including observation, inquiry, inspection, and re-performance. Type and Extent of Analytical Procedures to be Used Preliminary Analytical Procedures will assist in planning the nature, timing, and extent of auditing procedures that will be used to obtain evidential matter. These procedures will focus on enhancing our understanding of the financial results. These procedures are also used to identify any significant transactions and events that have occurred since the last audit date, as well as to identify any areas that may represent specific risks relevant to the audit. In performing our substantive testing, our audit efficiency initiative provides that we first think analytically. By doing this, we can better understand the specific account balance being tested and determine if the current balance or relationship with other account balances appears reasonable. We will also employ analytical testing on smaller and/or lower risk accounts and cycles to maintain efficiency and to meet milestones. Data Analytics — In addition to standard auditing methodology, a distinguishing aspect of CLA's audit services incorporates the power of data analytics to multiply the value of the analyses and the results we produce for our clients. In addition, we use other applications for the selection of random samples for testing and to extract information directly from your data files for testing and analytical analysis. With this technology, we are able to process and analyze substantial amounts of financial and non-financial data quickly and effectively. Our technology tools have been used successfully in both proactive and reactive audit engagements, across a broad range of industries. Our analyses can be tailored and customized to each client to help analyze an array of information, including client specific and proprietary data. Key benefits of this technology include: • Built-in audit functionality including powerful, audit specific commands and a self-documenting audit trail • 100 percent data coverage, which means that certain audit procedures can be performed on entire populations, and not just samples • Unparalleled data access allows us to access and analyze data from virtually any computing environment • Eliminates the need to extrapolate information from errors (a common effort when manually auditing data) and allows for more precise conclusions 614) (1) Ed ©2017 CliftonLarsonAllen LLP 135 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING We are able to use data analytics to investigate and analyze issues and concerns in the following areas: • Accounts receivable (fraud or payment misappropriation) • Accounts payable (fraud or payment error) • Purchase cards • Related party transactions • Travel and related expenses • Manual journal entry manipulation • Payroll Approach to Gain an Understanding of the Internal Control Structure We understand changing audit firms would require a new set of auditors to develop an understanding of the City and its internal control and operating structure. We also strive to develop our understanding in the least intrusive manner possible, while still maintaining our professional responsibilities. We would utilize a combination of internal control forms and interviews with key accounting personnel to gain and,document our understanding of the City. We will also use as a baseline any existing internal control processes, policies, organizational charts, etc. that the City may have already documented. Tests of design and operating effectiveness would then be performed to confirm our understanding. The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has established a framework for internal control systems. Under the COSO framework, internal control is a process to provide reasonable assurance that those internal objectives, including effectiveness and efficiency of business operations, reliability of financial reporting, and compliance with applicable laws and regulations,will be met. Our audit approach is designed to evaluate and test the departmental internal controls in accordance with COSO concepts. Our procedures include a review of the overall control environment, determination of the internal controls which are determined to be direct and material to the federal program under review, determination of the adequacy of those procedures, and testing of the procedures to determine if they are functioning as designed. During the planning and internal control phases of our audit, we will develop our understanding of the City's � 4 r business operations and internal control structure for K�� oc .Qac financial accounting and relevant operations through otzai az v"`� observation, discussion and inquiries with management and appropriate personnel. During this phase of the audit, we Control Environment will review budgets and related materials, organization charts, accounting and purchase manuals, and other systems documentation that may be available. •ry Once we understand your operations, we will then identifyffle tro!Activ1 , control objectives for each type of control that is material to the financial statements. The next step will be to identify /nformat on&Com unication and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. We will then determine the nature, timing and MontaringActi ities extent of our control testing and perform tests of controls. Figure 5: COSO Internal Control:Integrated Framework (V ©2017 CliftonlarsonAllen LLP I 36 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING This phase of the audit will include extensive testing of controls over transactions, financial reporting and compliance with laws and regulations. Whenever possible, we will use dual-purpose tests to reduce the need to select multiple samples for internal control and compliance testing. We will be as efficient as possible, thereby reducing the disruption to your operations while achieving our audit objectives. Our assessment of internal controls will determine whether the City has established and maintained internal controls to provide reasonable assurance that the following objectives are met: • Transactions are properly recorded, processed and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets • Assets are safeguarded against loss from unauthorized acquisition, use or disposition • Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements Our work papers during this phase will clearly document our work through the preparation of the following for each significant transaction cycle or accounting application: • Audit program • Cycle memo and supporting documentation • Account risk analysis (ARA) • Specific control evaluation (SCE) To assist in this process, we will provide a detailed Prepared by Client list early in the engagement. We will ask that your accounting staff provide us with standard schedules, as well as additional requested supporting items. We anticipate that your accounting personnel will need to locate and submit to us certain invoices, vouchers, cancelled checks and other documents and records. We are extremely flexible as to the format in which we receive this information and will ensure, through the use of the latest technology that your personnel will not be asked to perform any unnecessary or extensively disruptive tasks. In addition, we will need assistance from the City to provide the information to be included in the audit report as the Management's Discussion and Analysis (MD&A). Approach to Drawing Audit Samples for Purposes of Tests of Compliance Our approach to drawing audit samples will depend both on the assessment of control risk and determination of accounting control systems in place. For example, if we can determine that only one disbursement system is in place,we will select a sample based on the entire population. If there are several different systems with various controls in place, our approach will be to test each system and select samples for each system where we decide to rely on controls. Our sample size will vary based on the level of assessment of control risk. We utilize some form of random sample selection. The samples for purposes of compliance testing for populations greater than 100 are drawn randomly or haphazardly from the population of transactions utilizing applicable numerical sample techniques. These techniques consider confidence level, tolerable error and attribute risk in determining sample sizes. We will use dual-purpose testing whenever possible to increase audit efficiency. The samples for purposes of compliance testing for populations less than 250 generally range from 10-15 percent of the population or the identification and testing of individually significant transactions to obtain adequate population coverage. Samples for populations in excess of 250 range up to 60 items. (41 (C) f•POO ©2017 CliftonLarsonAllen LLP 137 WEALTH ADVISORY I OUTSOURCING 1 AUDIT,TAX,AND CONSULTING Use of Technology We rely on data analytic tools in our audit as a means to execute thorough and useful analysis of your financial data. Our audit staff are experienced with and will use IDEA data extraction software. The use of IDEA enables us to efficiently: • Mitigate risk through analysis of entire populations of data with efficiency to: o Identify high risk transactions indicative of potential errors or fraud o Make selections using risk and attribute based sampling methods o Derive better audit evidence in a more efficient manner • Provide meaningful and more timely management reports, including o Trends of business unit or product line results over time o Presentation of complex financial results into simple, more useful and impactful reports o Integration of disparate data to glean more meaningful business insights • Deliver more insightful and useful recommendations to management, including deeper insight into internal controls. • Identify areas that require more audit scrutiny. In addition to IDEA, we utilize FX Engagement as our audit software product. FX Engagement boasts a trial balance software program, with capabilities to produce consolidated financial statements, and lead schedules from multiple general ledgers. We also use APG, a software program custom written for CLA. This software package allows the tailoring of audit programs, based on the requirements of your engagement. Our clients can take advantage of a secure document portal to easily share documents and store files. This tool provides anytime, anywhere access to uploaded tax returns, financial statements, and more from anywhere you have an Internet connection. Clients and CLA professionals can share and store confidential files in a secure environment. The portal has capacity for both long-term and transient file storage and provides access to all your documents in one place. Extent and Use of Electronic Data Processing Software in the Engagement CLA professionals are experienced with the following specialized audit software and are fully able to audit computerized systems: • Improved Data for Efficient/Effective Auditing (IDEA) — Our firm utilizes /� IDEA data extraction software in conjunction with your data files as an ,_ " iDel'—', essential part of our audit processes. This software allows us to quickly Carta AlyesSoftware analyze your data. Our auditors use the IDEA analysis to identify areas that require more audit scrutiny. See below for more detail regarding IDEA. • FX Engagement — FX Engagement is our "paperless" audit product. This product allows us to file and save all of our audit work papers in an electronic storage capacity; allowing our firm to save time and • resources associated with maintaining and storing paper files. FX Engagement also boasts a trial balance software program, which is utilized to produce financial statements, lead schedules and allows us to perform trend analysis utilizing our clients'trial balances. • Audit Program Generator (APG) — In order to provide a uniform approach to all engagements, the firm requires the use of APG, a software program custom-written for CLA. This software package allows the tailoring of audit programs, based on the requirements of your engagement. We have developed a customized CLA audit program, which effectively makes our audit processes paperless and will enhance our present electronic practices. This software produces an industry-specific base program that is 011 tr) ©2017 CliftonLarsonAllen LLP I 38 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING intended to encourage more thoughtful and specific tailoring. For an engagement to be effective in dealing with the risk of errors and efficient in avoiding riskless work, the engagement team will create a plan — the program — that contains the steps necessary to accomplish the goals of your engagement. Using APG is viewed as a thinking process, not just a documentation process. • Client Portal—In addition to secure file transfer, clients can take advantage of a secure document portal to easily share documents and store files. This tool provides anytime, anywhere access to uploaded tax returns,financial statements and more from anywhere you have an Internet connection. Clients and CLA professionals can share and store confidential files in a secure environment. The portal has capacity for both Tong-term and transient file storage and provides access to all your documents in one place. Technology Programs Utilized Information and Technology (IT) systems are a critical aspect of the financial reporting processes and impact the internal control environment. The emphasis of the audit work program will be on the areas identified with the highest risk as a result of our risk assessment process. Our information system security group will evaluate the City's computer processing environment which include: general application controls that help maintain the reliability of the business and financial systems that support financial reporting objectives during the current and future reporting periods. We will use CaseWare's IDEA (IDEA) software to assist in our data analysis, sampling, and analytic review of the City. IDEA is a file interrogation, or data analysis, tool that facilitates an efficient audit of large volumes of transactions. IDEA is able to read electronic downloads of transactions in many different formats, including:text files, spreadsheet files, print reports, pdfs, and database files. IDEA allows the ability to audit both more efficiently and effectively, helping reduce risk and cost to our clients. Applications for IDEA for the City would include the following: • Gaining an understanding of the entity's operations through analysis of its financial transactions • Sampling of disbursements by evaluating unusual transactions • Selection of journal entries related to identified fraud risks • Summation of large volumes of similar transactions or sub-ledgers to determine agreement to the general ledger • Analytical review procedures • P-card testing • Completeness testing • Search for fraudulent vendors The team members proposed on this engagement receive regular training on the functionality of IDEA and complete case studies on the applications listed above as part of the training courses to our staff. In addition,we use other applications for the selection of random samples for testing and to extract information directly from your data files for testing and analytical analysis. Procedures Performed Regarding Significant Computer Systems Focusing on information security can be a competitive advantage in the marketplace and minimize potential legal risks to the City. Making information security a priority within the organization also demonstrates to employees that management understands the importance of protecting its most valuable asset - customer information. As a result, CLA provides several security-focused consulting services that can be customized to your specific requirements. CLA Information Security Services has significant experience and knowledge related 1111"5 co ©2017 CliftonLarsonAllen LLP I 39 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING to each of the described services and will identify exposures and risks that will assist each organization in implementing the proper controls and procedures to mitigate or eliminate the various risks. As described in the engagement team section,Jim Barton will be the IT manager. Jim will perform an evaluation of the City's IT systems controls over financial reporting, and will prepare a general IT controls report. The procedures will review: • Organization and management controls • Application security and access controls • Systems administration controls • Disaster recovery and contingency planning • Vendor management policies • Operational controls Jim also performs numerous vulnerability assessment penetration analysis engagement and would be available to perform these procedures for the City in a separate engagement. 4 „.., ,v n fr) ©2017 CliftonLarsonAllen LLP I 40 or WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING H. PRICE PROPOSAL Price Proposal Form PRICE PROPOSAL FORM RFP#17-005 AUDITING SERVICES COMPANY NAME CliftonLarsonAllen LLP A. ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED IN RFP #17-005 FOR FISCAL YEARS ENDING 2017, 2018, 2019: 2017 $ 35,500. 00 2018 $ 36,565 . 00 2019 $ 37,650. 00 TOTAL $ 109,715 . 00 B. ANNUAL PRICE PROPOSAL FOR SINGLE AUDIT FEE: 2017 $ 3,500 . 00 2018 $ 3,600 . 00 2019 $ 3,700 . 00 TOTAL $ 10,800. 00 kFF 1(-UU5 Auditing services 25 ©2017 CliftonLarsonAllen LLP I 41 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING C. / -; „ % h /iii " r l y .! i' a' * i. A Z/0,7a,. C. ANNUAL PRICE PROPOSAL FOR ASSISTANCE AND/OR REVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT(CAFR), IF REQUIRED: 2017 $ 0. 00 2018 $ 0 00 2019 $ 0. 00 TOTAL $ 0. 00 (A renewal option for an additional two years may be negotiated for services provided in items A through C). 9/14/2017 Date CliftonLarsonAllen LLP Company Name AI)0005891 License Number Michael E.Carter,CPA Authorized Officer(pn • thorized Signature KhP 1 i-UU5 Auditing Services 26 .4`') (17) Itio:‘.,„;) ©2017 CliftonLarsonAllen LLP ( 42 ; - WEALTH ADVISORY I OUTSOURCING I AUDIT, TAX,AND CONSULTING CliftonLarsonAllen (CLA) understands the importance of providing our clients with value-added solutions. We propose to provide routine, proactive quarterly meetings—as part of our fee—that will allow us to review and discuss with you the impact of new accounting issues, as well as any other business issues you are facing and how they should be handled. This level and frequency of interaction will no doubt enable CLA to help you tackle challenges as they come up, and take full advantage of every opportunity that presents itself. Below is our first years'total all-inclusive maximum price including all direct and indirect costs for the General Government Audit: Fee Considerations The fee proposal is based on the following: • The City of Ocoee, Florida (the City) personnel will provide assistance periodically throughout the year and during the assurance fieldwork with regard to account analysis and provision of year-end account reconciliation work papers and schedules. • The assurance reports will be delivered in accordance with the City's deadlines. • Satisfactory completion of our firm's normal client acceptance procedures. • Professional standards and regulations currently in effect. We reserve the right to modify your proposed fee if professional standards or regulations change for any engagement period. • No significant changes in the operations of the City subsequent to the date of this proposal. I ©2017 CliftonLarsonAllen LLP I 43 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING I. FORMS Summary of Litigation and Acknowledgement of Addenda 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) From time to time,the firm is a defendant in lawsuits involving alleged professional malpractice. In all cases,the firm believes that is has a strong position and intends to defend itself vigorously. Should the ultimate outcome be unfavorable,however,net of the deductible provisions of the firm's malpractice insurance,all cases are expected to be fully covered by insurance and will not have a material impact on the firm or its ability to perform these services. Moreover,in those cases where claims have been resolved by settlement(the vast majority of our cases),the firm is typically subject to confidentiality agreements that prohibit the disclosure of information regarding those matters.Disclosure by the firm of any details about those matters could invalidate the settlement agreements. 13. ACKNOWLEDGMENT OF ADDENDA: Proposer acknowledges receipt of the following addenda: No.1 Dated August 30,2017 No.2 Dated September 7,2017 No. Dated We are not aware of any addenda to this solicitation. kFN 1 f-UUb Auditing Services 16 itt Co ©2017 CliftonLarsonAllen LLP 144 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING; 'r fi' ,✓, ^ y ✓'"y /f f l Pl.N iy 1 � � � �y Conflict of Interest Disclosure Form ocoee florida EXHIBIT"G" RFP CONFLICT OF INTEREST DISCLOSURE FORM The award of this contract is subject to the provisions of Chapter 112, Florida Statutes. All Proposers must disclose within their Proposal: the name of any City of Ocoee employee, Mayor or City Commissioner, other City Official, or City Consultants, who owns assets or capital stock, directly or indirectly, in the Proposer's firm or any of its branches, or would directly or indirectly benefit by the profits or emoluments of this proposal. (Indirect ownership or benefit applies to any members of his or her immediate family.) Proposer 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,Proposer agrees to immediately notify the City in writing. The purpose of this disclosure form is to give the City the information needed to identify potential conflicts of interest for the City Commission, Evaluation Committee members, and other key City employees and consultants involved in the award of this contract. According to Chapter 112, Florida Statutes,the term "conflict of interest""means a situation in which regard for a private interest tends to lead to disregard of a public duty or interest",and refers to situations in which financial or other personal considerations may adversely affect, or have the appearance of adversely affecting,an employee's professional judgment in exercising any City duty or responsibility in administration,management,instruction,research,or other professional activities. Please check one of the following statements and attach additional documentation if necessary: X To the best of our knowledge,the undersigned firm has no potential conflict of interest for this Proposal. The undersigned firm,by attachment to this form,submits information which may be a potential conflict of interest for this Proposal. Acknowledged by: CliftonLarsonAllen LLP Firm Name ature Michael E.Carter,Principal Name and Title(Print or Type) 9/17/2017 Date - - -rr usiing ervices 27 4.14 (15 Ci) ©2017 CliftonLarsonAllen LLP 145 w4tNik WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Company Information and Signature Sheet REP#17-005 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. CliftonLarsonAllen LLP 863-680-5600 COMPANY NAME TELEPHONE(INCLUDE AREA CODE) 863-680-5650 FAX (INCLUDE AREA CODE) mike.carter@claconnect.com E-MAIL ADDRESS IF REMITTANCE ADDRESS IS DIFFERENT THORIZED SIGNATURE(manual) FROM PURCHASE ORDER ADDRESS, PLEASE INDICATE BELOW: Michael Carter,Principal _ NAME/TITLE(PLEASE PRINT) 402'South Kentucky Ave,Suite 600 STREET ADDRESS Lakeland,FL 33801 CITY STATE ZIP FEDERAL ID# 41-0746749 Individual Corporation X Partnership Other(Specify) Sworn to and subscribed before me this 13 day of September ,20 17 . Personally Known X or Produced Identification Notary Public-State of Florida (Type of Identification) County of Polk Signature of Notary P 4111111 Richard Roy Printed,typed or stamped Commissioned name of Notary Public RiCHA110R0Y 4MYCOMMISSION iF 243411 e,l,^ EXPIRES:June 23,2019 ,, Bonded mm Notry Punic uMennws Auditing ervlces fr) ©2017 CliftonLarsonAllen LLP I 46 40 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING APPENDIX A: CONTINUED PROFESSIONAL EDUCATION MIKE CARTER-CPE Completion Program Date Sponsor Name Total CLA 2017 Florida Government Training Academy 5/19/2017 CliftonLarsonAllen LLP(NASBA#108081) 6 (Fort Myers) Participant Credit for Instructors: CLA 2017 Florida Government Training Academy(Tampa) 5/18/2017 CliftonLarsonAllen LLP(NASBA#108081) 4 CLA Nonprofit Roundtable: Communicating Financial Information to Nonfinancial People(Key 4/3/2017 CliftonLarsonAllen LLP(NASBA#108081) 6 West) CLA Risks of Occupational Fraud Roundtable 9/27/2016 CliftonLarsonAllen LLP (NASBA#108081) 2 (Lakeland) Assurance Quarterly Update-2016 Q3(Webcast) 8/8/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Audit: Back to Basics(Orlando) 8/2/2016 CliftonLarsonAllen LLP(NASBA#108081) 8 Personal and Professional Ethics for Florida CPAs 6/29/2016 Checkpoint Learning 4 PSG Virtual Conference 5/19/2016 CliftonLarsonAllen LLP(NASBA#108081) 4 CLA 2016 Annual Government Accounting and Audit Update(Tampa) 5/5/2016 CliftonLarsonAllen LLP(NASBA#108081) 3 Participant credit for instructors: CLA 2016 Annual Government Accounting and Audit 5/5/2016 CliftonLarsonAllen LLP (NASBA#108081) 5.5 Update(Tampa) PSG Webinar Series#1 2016 PSG Update 2/3/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 (Webcast) Assurance Quarterly Update-2016 Q1 (Webcast) 1/11/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Single Audit Update(Webcast) 11/13/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 CLA Data Analysis Methodology,Tools and 11/12/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Resources Rebroadcast(Firm-Wide) CLA GASB 68 Implementation (Lakeland) 11/11/2015 CliftonLarsonAllen LLP(NASBA#108081) 1.5 POLK COUNTY TAX COLLECTOR UPDATE/UPDATE FROM THE PROPERTY APPRAISER'S OFFICE/A&A 11/5/2015 FICPA-FL#0002098 3 W/FL SOUTHERN STUDENTS PSG Webinar Series:Accounting Complexities Facing Local Governments, Part II (Group Internet 10/14/2015 CliftonLarsonAllen LLP (NASBA#108081) 2 Based) Risk Management Update(Webcast) 10/5/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 CLA Impact of the FASB Exposure Draft: Nonprofit 8/25/2015 CliftonLarsonAllen LLP(NASBA#108081) 6 Roundtable(Key West) ©2017 CliftonLarsonAllen LLP A-1 '�� WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING MIKE CARTER-CPE Program Completion Sponsor Name Total Date CLA Understanding Uniform Grant Guidance:A 8/14/2015 CliftonLarsonAllen LLP(NASBA#108081) 3 Local Government Financial Roundtable(Bartow) HUD Update 2014(Lakeland) 7/30/2015 CliftonLarsonAllen LLP(NASBA#108081) 3 Own the Impact: Plenary Sessions Tuesday 7/15/2015 CliftonLarsonAllen LLP(NASBA#108081) 4.5 7/14/15 and Wednesday 7/15/15 Own the Impact: Public Sector Break Out 7/15/15 7/15/2015 CliftonLarsonAllen LLP(NASBA#108081) 4.5 Own the Impact: Public Sector Break Out 7/14/2015 CliftonLarsonAllen LLP (NASBA#108081) 4.5 7/14/2015 CLA 2015 Annual Government Accounting and 5/6/2015 CliftonLarsonAllen LLP(NASBA#108081) 3 Audit Update(Orlando) Participant Credit for Instructors:CLA 2015 Annual Government Accounting and Audit 5/6/2015 CliftonLarsonAllen LLP(NASBA#108081) 7 Update(Orlando) Assurance Quarterly Update-2015 Q2 (Webcast) 5/4/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 SINGLE AUDIT UPDATE/GOVERNMENTAL& 3/5/2015 FICPA FL#0002098 3 NONPROFIT UPDATE Assurance Quarterly Update 2015 Q1(Group 1/26/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Internet Based) Principal Advance 2015: Casting the Vision for the Next Ten Years" Achieving it by Living the CLA 1/10/2015 CliftonLarsonAllen LLP(NASBA#108081) 10.5 Promise Risk Management Update(Webcast) 10/6/2014 CliftonLarsonAllen LLP(NASBA#108081) 1 Assurance Quarterly Update-Q4(Webcast) 10/6/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 PSG Virtual Conference 7/16/2014 CliftonLarsonAllen LLP(NASBA#108081) 8 Oil fir) ©2017 CliftonLarsonAllen LLP I A-2 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING WALKER WILKERSON-CPE Program Completion Sponsor Name Total Date Audit: Be in the Know(Charlotte) 6/22/2017 CliftonLarsonAllen LLP(NASBA#108081) 10.5 Participant credit for instructors: Audit: Be in the Know(Charlotte) 6/22/2017 CliftonLarsonAllen LLP(NASBA#108081) 4.5 Making Connections:The 2017 Regulated 6/16/2017 CliftonLarsonAllen LLP(NASBA#108081) 6 Industry Conference General Sessions Making Connections:The 2017 Regulated 6/16/2017 CliftonLarsonAllen LLP(NASBA#108081) 3 Industry Conference PSG breakout Participant Credit for Instructors: Making Connections:The 2017 Regulated Industry 6/16/2017 CliftonLarsonAllen LLP(NASBA#108081) 7 Conference PSG breakout Personal and Professional Ethics for Florida CPAs 5/25/2017 Checkpoint Learning 4 May 201.7 Assurance Update(Webcast) 5/8/2017 CliftonLarsonAllen LLP(NASBA#108081) 6 PSG Webcast Series#1: FASB/GASB Update& 2/1/2017 CliftonLarsonAllen LLP(NASBA#108081) 6 Common Errors Found in 2nd Review(Webcast) 2017 FedGov Industry Conference(Invitation 1/16/2017 CliftonLarsonAllen LLP(NASBA#108081) 8.5 Only) LEAP: Learn (January 2017) 1/12/2017 CliftonLarsonAllen LLP(NASBA#108081) 37.5 2016 Single Audit Update 12/1/2016 CliftonLarsonAllen LLP(NASBA#108081) 5 GOVERNMENTAL ACCOUNTING AND AUDITING 8/9/2016 AICPA NASBA#112891 18 UPDATE CONFERENCE 2016 Audit: Back to Basics(Baltimore) 7/25/2016 CliftonLarsonAllen LLP(NASBA#108081) 24 GASB for Higher Ed Webinar Series#2-GASB Technical Disclosure and Accounting Topics 7/12/2016 CliftonLarsonAllen LLP(NASBA#108081) 6 (Webcast) PSG Webinar Series: Single Audit(Group 6/1/2016 CliftonLarsonAllen LLP (NASBA#108081) 2 Internet Based) Risk Management and Ethics Update(Orlando) 5/24/2016 CliftonLarsonAllen LLP(NASBA#108081) 8 Participant credit for instructors: PSG Virtual 5/19/2016 CliftonLarsonAllen LLP(NASBA#108081) 4 Conference Managing Principal Industry and Service 5/5/2016 CliftonLarsonAllen LLP(NASBA#108081) 6 Learning(Invitation Only) PSG Wealth Advisory Pilot: Results, Lessons& 2/5/2016 CliftonLarsonAllen LLP(NASBA#]08081) 1 Tools(Group Internet Based) PSG Webinar Series#1 2016 PSG Update 2/3/2016 CliftonLarsonAllen LLP (NASBA#108081) 6 (Webcast) 144/ (1, ©2017 CliftonLarsonAllen LLP A-3 "" WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING WALKER WILKERSON-CPE Program Completion Sponsor Name Total Date 2016 FedGov Industry Conference(Invitation 1/19/2016 CliftonLarsonAllen LLP(NASBA#108081) 11 Only) Assurance Quarterly Update 2016 01 1/11/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 (Webcast) Single Audit Update(Group Internet Based) 11/13/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Implementation of New SSARS No. 21 October 10/16/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 2015(Webcast) Risk Management Update(Webcast) 10/5/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Assurance Quarterly Update 2015 Q4 10/5/2015 CliftonLarsonAllen LLP(NASBA#108081) 6 (Webcast) Leadership Development Series: Part 4 9/30/2015 CliftonLarsonAllen LLP (NASBA#108081) 21 (Invitation Only) AICPA GOVERNMENTAL ACCOUNTING AND 8/12/2015 AICPA NASBA#112891 17 AUDITING UPDATE CONFERENCE EAST Own the Impact: Plenary Sessions Tuesday 7/15/2015 CliftonLarsonAllen LLP(NASBA#108081) 4.5 7/14/15 and Wednesday 7/15/15 Own the Impact: Public Sector Break Out 7/15/2015 CliftonLarsonAllen LLP(NASBA#108081) 1.5 7/15/15 Own the Impact: Public Sector Break Out 7/14/2015 CliftonLarsonAllen LLP (NASBA#108081) 4.5 7/14/2015 Leadership Development Series: Part 2 6/30/2015 CliftonLarsonAllen LLP(NASBA#108081) 17.5 (Invitation Only) Leadership Development Series: Presentation 6/3/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Skills(Group Internet Based) Leadership Development Series: Part 1 (Invitation Only) 5/29/2015 CliftonLarsonAllen LLP (NASBA#108081) 24 Planning for Your 2015 Fiscal Year End Single Audits-Changes You Need to Know Rebroadcast 5/15/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 (Firm-Wide) Implementation of New SSARS No. 21-May 2015(Group Internet Based) 5/11/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 CLA 2015 Annual Government Accounting and 5/7/2015 CliftonLarsonAllen LLP(NASBA#108081) 4 Audit Update(Tampa) Assurance Quarterly Update 2015 Q2 5/4/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 (Webcast) Personal and Professional Ethics for Florida CPAs 5/1/2015 PASS Online 4 1#1115 (47) ©2017 CliftonLarsonAllen LLP I A-4 041111) WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING @yv f /% r r // .1�;.. � , '/ s,�✓ii,i �5% Aj rri ,,,,A',.. �rf, i.:/ SrC r„ i//I4.�.4%rr ft '°; / sq r , roa k .. WALKER WILKERSON-CPE Program Completion Sponsor Name Total Date Assurance Quarterly Update 2015 Q1 1/26/2015 CliftonLarsonAllen LLP(NASBA#108081) 6 (Webcast) 2015 FedGov Industry Conference 1/20/2015 CliftonLarsonAllen LLP (NASBA#108081) 15.5 Data Analytics and Forensic Training 1/16/2015 CliftonLarsonAllen LLP (NASBA#108081) 16 INVITATION ONLY(Minneapolis) Principal Advance 2015:Casting the Vision for the Next Ten Years Achieving it by Living the 1/10/2015 CliftonLarsonAllen LLP(NASBA#108081) 10.5 CLA Promise Second Reviewer Update(Webcast) 12/9/2014 CliftonLarsonAllen LLP(NASBA#108081) 3 Understanding the New CLA Technology 11/21/2014 CliftonLarsonAllen LLP(NASBA#108081) 1.5 Platform (Webcast) Independence and Ethics Update(Group 11/21/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 Internet Based) Professional Skepticism(Webcast) 11/11/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 Risk Management Update(Webcast) 10/6/2014 CliftonLarsonAllen LLP(NASBA#108081) 1 Assurance Quarterly Update-Q4(Webcast) 10/6/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 AICPA NATIONAL GOVERNMENTAL ACCOUNTING AND AUDITING UPDATE 9/23/2014 AICPA 18 CONFERENCE WEST New CLA Understanding Internal Controls Forms 9/19/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 and Fraud Update(Group Internet Based) Participant Credit for Instructors: PSG Virtual 7/16/2014 CliftonLarsonAllen LLP (NASBA#108081) 8 Conference 14015 (C) ©2017 CliftonlarsonAllen LLP A-5 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING W' 1 BRIAN QUINLIN-CPE Program Completion Sponsor Name Total Date Making Connections:The 2017 Regulated 6/16/2017 CliftonLarsonAllen LLP(NASBA#108081) 6 Industry Conference General Sessions Making Connections:The 2017 Regulated 6/16/2017 CliftonLarsonAllen LLP(NASBA#108081) 8 Industry Conference PSG breakout CLA 2017 Florida Government Training Academy 5/19/2017 CliftonLarsonAllen LLP(NASBA#108081) 7 (Fort Myers) PSG Webcast Series#2:Single Audit(Webcast) 4/19/2017 CliftonLarsonAllen LLP(NASBA#108081) 2 January 2017 Assurance Update(Webcast) 1/9/2017 CliftonLarsonAllen LLP(NASBA#108081) 2 2016 Single Audit Update Rebroadcast(Sebring) 12/13/2016 CliftonLarsonAllen LLP(NASBA#108081) 6 Independence and Ethics Update 2016 11/18/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 (Webcast) Risk Management Update 2016(Webcast) 10/24/2016 CliftonlarsonAllen LLP(NASBA#108081) 2 Assurance Quarterly Update 2016 44 10/24/2016 CliftonlarsonAllen LLP(NASBA#108081) 2 (Webcast) A&A Update for Government Group 10/13/2016 CliftonLarsonAllen LLP(NASBA#108081) 3 Rebroadcast(Sebring) PSG Webinar Series:Accounting Complexities 10/12/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Facing Local Government(Webcast) PSG Webinar Series#4:GASB 72 and Common 8/10/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Financial Statement Mistakes(Webcast) Assurance Quarterly Update-2016 Q3 (Webcast) 8/8/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Audit: Back to Basics(Orlando) 8/2/2016 CliftonLarsonAllen LLP(NASBA#108081) 7.5 PSG-State&Local Government(Florida) 7/29/2016 CliftonLarsonAllen LLP(NASBA#108081) 21 2016 FGFOA CONFERENCE 6/13/2016 FGFOA-FL#0002329 6 Personal and Professional Ethics for Florida CPAs 6/7/2016 Checkpoint Learning 4 PSG Webinar Series:Single Audit(Group 6/1/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Internet Based) Assurance Quarterly Update 2016 Q2 5/2/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 (Webcast) PSG Webinar Series: Data Analytics(Group 4/6/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Internet Based) PSG Wealth Advisory Pilot: Results,Lessons& 2/5/2016 CliftonLarsonAllen LLP(NASBA#108081) 1 Tools(Webcast) PSG Webinar Series#1 2016 PSG Update 2/3/2016 CliftonlarsonAllen LLP(NASBA#108081) 2 (Webcast) 4.!'l (5 Co) ©2017 CliftonLarsonAllen LLP A-6 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,ANL'CONSULTING BRIAN QUINLIN-CPE Program Completion Sponsor Name Total Date GASB Update 2016 2/3/2016 Becker Professional Education 1 Owning and Implementing the Wealth Advisory 10/30/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Strategy within the CLA Promise(Webcast) Implementation of New SSARS No.21 October 10/16/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 2015(Webcast) CLA GASB 68 Implementation (Sebring) 10/16/2015 CliftonLarsonAllen LLP(NASBA#108081) 1.5 PSG Webinar Series:Accounting Complexities 10/14/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Facing Local Governments, Part II (Webcast) A&A Update for Government Group 10/6/2015 CliftonLarsonAllen LLP (NASBA#108081) 6 Risk Management Update(Webcast) 10/5/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Assurance Quarterly Update 2015 Q4 10/5/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 (Webcast) CLA Data Analysis Methodology,Tools and Resources(Group Internet Based) 9/25/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Assurance Quarterly Update 2015 Q3 8/10/2015 CliftonLarsonAllen LLP (NASBA#108081) 2 (Webcast) CLA's Affordable Care Act Employer Reporting 8/6/2015 CliftonLarsonAllen LLP(NASBA#108081) 1 Solution (Group Internet Based) PSG Webinar Series: Good Ideas to Implement IDEA on Audit Engagements(Group Internet 8/5/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Based) Own the Impact: Plenary Sessions Tuesday 7/15/2015 CliftonLarsonAllen LLP(NASBA#108081) 7 7/14/15 and Wednesday 7/15/15 Own the Impact: Public Sector Break Out 7/15/2015 CliftonLarsonAllen LLP(NASBA#108081) 4.5 7/15/15 Own the Impact: Public Sector Break Out 7/14/2015 CliftonLarsonAllen LLP (NASBA#108081) 4.5 7/14/2015 Planning for Your 2015 Fiscal Year End Single Audits-Changes You Need to Know Rebroadcast 5/15/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 (Firm-Wide) Assurance Quarterly Update 2015 Q2 5/11/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Rebroadcast(Firm-Wide) CLA 2015 Annual Government Accounting and 5/8/2015 CliftonLarsonAllen LLP(NASBA#108081) 7 Audit Update(Fort Myers) PSG Webinar Series: Effective Communications 4/1/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 with Governance(Webcast)415 45 0.:,0 ©2017 CliftonLarsonAllen LLP I A-7 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING BRIAN QUINLIN-CPE Completion Program Date Sponsor Name Total Understanding the New CLA Technology 12/5/2014 CliftonLarsonAllen LLP(NASBA#108081) 1.5 Platform Rebroadcast(Firm-Wide) Independence and Ethics Update Rebroadcast 12/5/2014 CliftonLarsonAllen LLP (NASBA#108081) 2 (Firm-Wide) Professional Skepticism(Webcast) 11/11/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 HUD Update 2014(Fort Myers& Naples) 10/31/2014 CliftonLarsonAllen LLP(NASBA#108081) 3 Risk Management Update(Webcast) 10/6/2014 CliftonLarsonAllen LLP(NASBA#108081) 1 Assurance Quarterly Update-Q4(Webcast) 10/6/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 Accounting Complexities Facing Local 10/1/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 Governments(Webcast) Computer Assisted Auditing Techniques 8/6/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 (Webcast) Assurance Quarterly Update-Q3(Webcast) 8/4/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 PSG Virtual Conference 7/16/2014 CliftonLarsonAllen LLP(NASBA#108081) 8 14: ©2017 CliftonLarsonAllen LLP A-8 1:;,1 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING TIM JICKELL-CPE Completion Program Date Sponsor Name Total PSG Webcast Series#2:Single Audit(Webcast) 4/19/2017 CliftonLarsonAllen LLP(NASBA#108081) 2 January 2017 Assurance Update(Webcast) 1/9/2017 CliftonLarsonAllen LLP(NASBA#108081) 2 2016 Single Audit Update 12/1/2016 CliftonLarsonAllen LLP(NASBA#108081) 6 Independence and Ethics Update 2016 11/18/2016 CliftonLarsonAlien LLP(NASBA#108081) 2 (Webcast) Risk Management Update 2016(Webcast) 10/24/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Assurance Quarterly Update 2016 Q4 10/24/2016 CliftonLarsonAllen LLP (NASBA#108081) 2 (Webcast) PSG Webinar Series:Accounting Complexities 10/12/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Facing Local Government(Webcast) A Fresh Look at Retirement Plan Services (Webcast) 9/19/2016 CliftonLarsonAllen LLP(NASBA#108081) 1 LEAP: Propel August 2016 9/1/2016 CliftonLarsonAllen LLP(NASBA#108081) 34.5 Assurance Quarterly Update 2016 Q3(Group 8/8/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Internet Based) PSG Webinar Series: Single Audit(Webcast) 6/1/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 PSG Virtual Conference(Group Internet Based) 5/19/2016 CliftonLarsonAllen LLP (NASBA#108081) 4 Assurance Quarterly Update 2016 Q2 5/2/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 (Webcast) PSG Webinar Series: Data Analytics(Group 4/6/2016 CliftonLarsonAllen LLP(NASBA#108081) 2 Internet Based) PSG Wealth Advisory Pilot: Results, Lessons& Tools(Webcast) 2/5/2016 CliftonLarsonAllen LLP(NASBA#108081) 1 GASB Update 2016 2/3/2016 Becker Professional Education 1 LEAP: Learn 2016 1/15/2016 CliftonLarsonAllen LLP(NASBA#108081) 25.5 Financial SCAN Training(Group Internet Based) 11/18/2015 CliftonLarsonAllen LLP(NASBA#108081) 1 Single Audit Update(Group Internet Based) 11/13/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 CLA GASB 68 Implementation(Lakeland) 11/11/2015 CliftonLarsonAllen LLP(NASBA#108081) 1.5 Owning and Implementing the Wealth Advisory 10/30/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Strategy within the CLA Promise(Webcast) A&A Update for Government Group 10/6/2015 CliftonLarsonAllen LLP(NASBA#108081) 6 Risk Management Update(Group Internet 10/5/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Based) (47) • ©2077 CliftonLarsonAllen LLP A-9 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING TIM JICKELL-CPE Program Completion Sponsor Name Total Date Assurance Quarterly Update 2015 Q4(Group 10/5/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Internet Based) CLA Data Analysis Methodology,Tools and 9/25/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Resources(Webcast) Assurance Quarterly Update-2015 Q3 (Group Internet Based) 8/10/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 CLA's Affordable Care Act Employer Reporting 8/6/2015 CliftonLarsonAllen LLP(NASBA#108081) 1 Solution (Group Internet Based) PSG Webinar Series: Good Ideas to Implement IDEA on Audit Engagements(Group Internet 8/5/2015 CliftonLarsonAllen LLP(NASBA#108081) 2 Based) PSG Virtual Conference for Seniors 7/28/2015 CliftonLarsonAllen LLP(NASBA#108081) 8 LEAP:Achieve May 2015(Tax Exempt) IRS CE 5/21/2015 CliftonLarsonAllen LLP(NASBA#108081) 37.5 #ERGQW-T-00124-15-I Planning for Your 2015 Fiscal Year End Single Audits-•Changes You Need to Know(Group 5/8/2015 CliftonLarsonAllen LLP(NASBA#108081) 1.5 Internet Based) Assurance Quarterly Update 2015 Q2 (Group 5/4/2015 CliftonLarsonAllen LLP (NASBA#108081) 2 Internet Based) LEAP: Learn January 2 2015 Assurance, 1/14/2015 CliftonLarsonAllen LLP(NASBA#108081) 48 including Business Risk&Independence Risk Management Update(Webcast) 10/6/2014 CliftonLarsonAllen LLP (NASBA#108081) 1 Assurance Quarterly Update-Q4(Webcast) 10/6/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 Accounting Complexities Facing Local 10/1/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 Governments(Webcast) ROUNDTABLE AND CPE PROGRAM 9/11/2014 FICPA POLK COUNTY CHAPTER FL 2 #0002098 Computer Assisted Auditing Techniques 8/6/2014 CliftonLarsonAllen LLP(NASBA#108081) 2 (Webcast) LEAP: Experience July 2014-Assurance 7/24/2014 CliftonLarsonAllen LLP(NASBA#108081) 16 LEAP: Experience July 2014 Productivity&Time 7/22/2014 CliftonLarsonAllen LLP(NASBA#108081) 6 Management; Project Management LEAP: Experience July 2014-Tax Generalist 7/22/2014 CliftonLarsonAllen LLP(NASBA#108081) 16 PSG Virtual Conference 7/16/2014 CliftonLarsonAllen LLP (NASBA#108081) 8 fr) .„_, 0201.7 CliftonLarsonAllen LLP l A-10 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING JIM BARTON-CPE Program Completion Sponsor Name Total Date Making Connections:The 2017 Regulated Industry Conference General Sessions 6/16/2017 CliftonLarsonAllen LLP(NASBA#108081) 6 Making Connections:The 2017 Regulated Industry Conference Financial Institutions 6/16/2017 CliftonLarsonAllen LLP(NASBA#108081) 8 breakout CLA 2017 Florida Government Training Academy (Fort Myers) 5/19/2017 CliftonLarsonAllen LLP(NASBA#108081) 3 Participant Credit for Instructors:CLA 2017 Florida Government Training Academy(Tampa) 5/18/2017 CliftonLarsonAllen LLP (NASBA#108081) 3.5 Cyber Risk and the Internal Auditor 5/11/2017 Checkpoint Learning 2 2017 ISSG/BRS Update 1/26/2017 CliftonLarsonAllen LLP (NASBA#108081) 19 CLA 2016 Annual Government Accounting and Audit Update(Tampa) 5/5/2016 CliftonLarsonAllen LLP(NASBA#108081) 3 Specialized Advisory Services Learning- ISSG/BRS(Invitation Only) 1/6/2016 CliftonLarsonAllen LLP(NASBA#108081) 4.5 Participant Credit for Instructors:Specialized Advisory Services Learning-ISSG/BRS(Invitation 1/6/2016 CliftonLarsonAllen LLP(NASBA#108081) 17.5 Only) Manager and Director Conference 7/9/2015 CliftonLarsonAllen LLP(NASBA#108081) 16 Alternative Investments 6/25/2015 CliftonLarsonAllen LLP(NASBA#108081) 1 Internal Control and Fraud Detection 6/19/2015 PASS Online 8 Information Technology Auditing 6/18/2015 MicroMash 11 CYBER ASSURANCE 1/20/2015 ISACA 1 Custom Web and Mobile Penetration Testing 9/5/2014 CliftonLarsonAllen LLP(NASBA#108081) 28.5 in (7) ©2017 CliftonLarsonAllen LLP ( A-11 WEALTH ADVISORY I OUTSOURCING I AUDIT,TAX,AND CONSULTING Grow Forward. 4r tn • ' ` :\-‘40,101101,,_ r ,v-A\ 55555 s_ S*5 ss %55555 Proposal to Provide Auditing Services for City of Ocoee, Florida RFP #17-005 September 14, 2017 "Original" Prepared by: Ronald A. Conrad Partner P 407.423.7911 E raconradccbh.com 800 North Magnolia Avenue Suite 1300 Orlando, FL 32803-3255 Cilvie4 Cherry Bekaert' CPAs&Advisors Proposal to provide audit services City of Ocoee, Florida Table of Contents A. Title Page 1 B. Table of Contents 2 C. Letter of Transmittal 3 D. Mandatory Criteria 7 E. Firm's Qualifications 7 About Cherry Bekaert LLP 7 Overall Governmental Auditing Experience 9 Continuing Professional Education 13 Experience with the GFOA Certificate of Achievement for Excellence in Financial Reporting 13 Peer Reviews 13 Management Advisory Services 14 Municipal Bond Offerings 14 F. Personnel Qualifications 15 Staff Continuity and Rotation 24 G. Audit Approach 25 Technical Approach 25 Proposed Segmentation of the Engagement 28 H. Price Proposal 38 Required Forms 39 Appendix A 40 Peer Review Report 40 Appendix B 42 Drug-Free Workplace 42 Certification of Non-Segregated Facilities 42 Statement of Affirmation and Intent 42 Public Entity Crime Statement 42 Insurance 42 `f► Cherry Bekaert"` ega Yourguide*ward cbh.com 04 Cherry Bekaert CPAs&Advisors September 14, 2017 City of Ocoee, Florida Attn: Purchasing Agent 150 N Lakeshore Drive Ocoee, FL 34761-2258 Dear Auditor Selection Committee Members: Cherry Bekaert LLP ("Cherry Bekaert") is pleased to submit this proposal to provide auditing services for the City of Ocoee, Florida (the "City") for the fiscal years ending September 30, 2017, 2018, and 2019, with an option of renewal for an additional two years. This proposal shall remain valid for at least 90 days, subject to customary client acceptance procedures. Cherry Bekaert is one of the top providers of government audit services in Florida and is ranked as one of the Top 30 largest CPA firms in the nation. Our Government Services Group, with Florida services led by our Orlando office, provides services to numerous municipalities, counties, utilities and other governmental units throughout Florida, with a year round focus on matters relevant to the City. We bring to the City an excellent reputation based on high quality services performed by knowledgeable professionals that are thorough, timely and focused on client needs and expectations. Our audits shall be conducted in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. To the extent applicable, auditing standards and reports shall also meet the requirements of Uniform Guidance and the Florida Single Audit Act, Florida Statutes and Rules of the Auditor General of the State of Florida. We recognize the intricacies of working under all of these standards and have developed an efficient and effective approach to auditing city governments. We understand that timeliness is critical in the performance of an audit and we commit to the City to complete interim work, the detailed audit plan, fieldwork and reports as defined in the Request for Proposals. In addition, our Orlando office which includes 26 government auditors, is the largest government audit group in our Firm; we believe this to be the largest in Central Florida. We have the expertise and resources to immediately prioritize the City's needs. 800 N.Magnolia Avenue,Suite 1300,Orlando,FL 32803 I i 407.423.7911 I cbh.com tuft Cherry Bekaert `P mot CFAs&Advisors Outlined in this proposal are key factors that distinguish Cherry Bekaert 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 government accounting and auditing requirements, our firm-wide and local focus on government services and our demonstrated commitment to maintaining a high level of service. This proposal is made without collusion with any other person or entity submitting a proposal pursuant to this RFP. Thank you for this opportunity to present our professional qualifications. With Cherry Bekaert, the City will be a highly prioritized and premier client, receiving the benefit of highly knowledgeable professionals who understand the City's operations. Please feel free to contact me at 407.423.7911, as the Firm's authorized representative, should you have any questions regarding this proposal. Sincerely, Cherry Bekaert LLP Ronald A. Conrad Partner Proposal to provide external audit services City of Ocoee, Florida Executive Summary At Cherry Bekaert, many factors set us apart, but the value of the services we provide relies intrinsically not on what services we have to offer the City, but, rather, how we deliver those services. Cherry Bekaert has excellent credentials to serve the City. with a combination of superior expertise and extensive resources. National and Government Profile Cherry Bekaert is the largest accounting firm based in the Southeast United States with a primary focus on public sector services, with services provided throughout the United States and by more than 260 professionals in Florida. Cherry Bekaert is nationally recognized and has an excellent reputation, with one of the largest government practices in the Southeast. Further, our Government Services Group has a large group of partners and other professionals, providing significant depth, expertise and knowledge of best practices relevant to municipalities. Our size, structure, resources and broad capabilities assure continuing depth of expertise and availability of service disciplines to assist beyond the basic audit. Dedicated and Experienced Team Our proposed engagement team brings many years of experience serving Florida municipalities, along with a strong desire to serve the City, and has the capacity to provide appropriate priority to serve in a high-quality manner. The Orlando office, from which our services will be based, is the lead government service practice office within Cherry Bekaert, and our services for the City will be led by top professionals responsible for government and Single Audit services. Smooth Transition The depth of expertise and structure of our firm-wide Government Services Group, the support this group will provide the City, the expertise of our Information Technology Group and the expertise of our local service team provide a solid base to facilitate a smooth transition and an effective audit. We are highly proactive, have a very organized approach that focuses on early planning and identification issues and we provide highly knowledgeable professionals with considerable partner involvement. As provided in our client listing in this proposal, Cherry Bekaert serves many municipalities throughout the Southeast United States and our local professionals have considerable experience with large government and municipal audits. Our audit programs and processes are tailored specifically to municipal government, streamlined through years of experience serving Florida cities and other big cities firm-wide. We understand city operations, are flexible in working with city personnel, and have refined city audit processes. Record of High Quality Client Service Cherry Bekaert has a long history of commitment to providing top quality service to governmental entities. We offer the City a high degree of practical understanding in the effective application of current standards by bringing an unmatched depth of knowledge with respect to Florida cities and related audit and accounting requirements. `1.4 Cherry Bekaert r �. _; cbh.com 5 Proposal to provide external audit services City of Ocoee, Florida Availability of Experienced Professionals The Orlando office of Cherry Bekaert is approximately 95% focused on public sector service, with a very stable environment where government services are the forefront of our practice at virtually all times. As a key office within our Government Services Group, our local professionals are supported by and work with other government services professionals throughout the firm, providing a depth of professionals available to the City and expertise accumulated in serving large municipalities and other government organizations throughout the firm. In short, our extensive local expertise and resources are complemented by similar talent within our Government Services Group throughout the firm, and we have significant depth of expertise serving municipalities similar to the City. A Fresh Look We bring fresh thinking and ideas relevant to the City, backed by industry and technical expertise. The City will be able to count on Cherry Bekaert to navigate the dynamics of today's rapidly changing government and regulatory environment "The teams assigned to "The results of the audit Charlotte County have been exceeded our expectations. extremely knowledgeable, Cherry Bekaert's staff was possess good communication very knowledgeable and skills, high energy levels, and professional in their approach work with staff at every step to ensure that we are all to the audit. We developed a accomplishing our goals in a good working relationship timely fashion. They are very right from the start. responsive to questions, I appreciate the thorough researching issues where review of our internal controls needed to reach a consensus.- and the comprehensive "The firm ensures that enough annual financial report. The suggestions received resulted team members are assigned to meet timely completion of in improvements to our audit within the applicable internal controls. deadlines and are very I strongly recommend Cherry dedicated to the needs of the Bekaert. client throughout the audit process." Edwin M. Fry, Jr., CPA, CGFO Ann Marie Larrivee Finance Director/City Finance Director Treasurer Charlotte County, Florida City of Port St. Lucie `'84 Cherry Bekaert cbh.com 6 l ti tgiR .. st Proposal to provide external audit services City of Ocoee, Florida D. Mandatory Criteria Cherry Bekaert, its partners and all assigned professional staff in this proposal are appropriately licensed to perform the auditing services required by the City as provided in the applicable laws of the State of Florida. E. Firm's Qualifications About Cherry Bekaert LLF At Cherry Bekaert, we have designed our practice to assist clients with their needs through a broad range of services and personalized service provided by highly knowledgeable professionals. Our dedicated Government Services Group (GSG) has a key leadership role in the firm and is widely recognized for expertise. Established in 1947, Cherry Bekaert has grown to become ranked among the 25 largest accounting firms in the United States and currently has a personnel complement of approximately 1,000. Your Guide Forward Headquartered in Richmond, Virginia, the Firm has practice offices in Virginia, Maryland, North and South Carolina, Georgia, and Florida. With Cherry Bekaert, the City has access to resources and capabilities of a national firm while enjoying the benefits of: ► direct partner involvement; ► staff continuity; ► proactive communication; ► responsiveness; and ► tailored, streamlined service plans. Experience Serving Local Governments The commitment of the Firm to the public sector is demonstrated by our sustained growth in this practice area as well as the depth of experience of personnel in our GSG. The GSG is responsible for assuring seamless service delivery and quality control for all government engagements throughout the Firm. Cherry Bekaert's commitment to providing auditing and advisory services is evident in the over 150 local governments, authorities and public agencies we serve annually. The experience gained through service (e.g., financial audits, control assessments, performance audits)to such a wide breadth and depth of public sector organizations provides us invaluable insight into the issues and stresses impacting the City and its peers. "4 Cherry Bekaert cbh.com ` 7 Proposal to provide external audit services City of Ocoee, Florida Local Service Commitment Cherry Bekaert has a personnel complement of approximately 260 in Florida, with offices in Orlando, Tampa, Ft. Lauderdale and Coral Gables. We are well-established in the Florida CMar,dc business community, and successfully serve clients throughout Florida in a variety of industries. Government services represent the most significant industry portion of our Florida F LauGerdale. practice. The principal office responsible for the City's audit will continue to be the Orlando office, which represents the largest government practice in our Firm and is 95% devoted to public sector audit services. This office has 26 public sector audit professionals in the GSG. Qualifications of Personnel Cherry Bekaert offers the City a seasoned professional services team with extensive experience and specialized knowledge relevant to the City. In addition to extensive knowledge of the City among our professional services team, our proposed engagement partner is the Firm's lead technical partner for government services, our Orlando office professionals compose the largest government audit practice in Central Florida, and we currently provide audit services for numerous Florida municipalities. Cherry Bekaert recognizes the demanding environment in which the City operates; therefore, our goal is to continue to assist the City improve its internal controls and processes with continuity of experienced professionals who understand the City's needs and requirements. Our Orlando office professional staff, consists of the following: evel Total Orlando 'Partner/Director 2 Senior Manager 1 Manager Senior/In-Charge 1 O Staff 10 Client Service Support 1 Total 27 All personnel assigned to the City will be on a full-time basis. a _ %,ilt. Cherry Bekaert cbh.com 8 • Proposal to provide external audit services City of Ocoee, Florida Single Audit Expertise The majority of our government clients require Single Audits, most of which include federal and state awards. All of the Single Audits we have performed in the past have been accepted by applicable federal and state regulators and many have been reviewed through peer and other quality control inspections. Additionally, our engagement partner is an Executive Committee member for the AICPA Government Audit Quality Center, responsible for reviewing Single Audit guidance for the profession. Cherry Bekaert professionals assigned to the City all have extensive Single Audit experience and are well aware of grant program requirements for the City. In total, our local practice provides Single Audit services for more than $1 billion of federal and state financial assistance. Staffing As previously presented, Cherry Bekaert has a highly knowledgeable and experienced service team for the City, with the benefit of considerable continuity throughout our tenure as the City's independent auditor. This continuity, together with the additional personnel who assisted with internal control study provided for the City this past year, provides considerable depth of experienced professionals to assure the City of adequate resources who know and understand the City's operations going forward. Workload and Availability to Meet Schedules Because of the depth of our personnel, we will be able to commit our proposed professional service team members to the audit of the City without conflict. uvelali 6overnl;1el t d auditing Experience Public sector auditing, specifically for government entities, is Cherry Bekaert's largest audit segment firm-wide. As referenced earlier, Cherry Bekaert has created a specialized GSG comprised of professionals who have dedicated their careers to serving government entities—including professionals proposed for the City's engagement. A sample of government entities served this past year, with Florida government clients in bold, follows: Government Clients Augusta-Richmond County / Fairfax County,VA ► New Hanover County,NC Consolidated Government,GA ► Forsyth County, NC ► Orange County,FL ► Beaufort County,GA ► Guilford County,NC 1 Pickens County,SC ► Charlotte County, FL ► Hillsborough County,FL 1 Prince William County,VA ► Columbia County,GA ► Isle of Wight County,VA ► Randolph County,NC ► County of Hanover,VA / Loudoun County,VA ► Spotsylvania County,VA ► County of Roanoke,VA 1 Mecklenburg County,NC ► Tyeell County,VA 1 Cumberland County, NC ► Monroe County,FL ► Union County, NC 1 Durham County, NC ► Montgomery County. MD ► York County,VA 1111111► Cherry Bekaert'° -.ur yu:de/Crura,d Cbh.COM 9 Proposal to provide external audit services City of Ocoee, Florida ',PP"' ► City of Asheville,NC / City of Lake Wales,FL / City of St.Petersburg,FL ► City of Charlotte,NC / City of Newport News,VA / City of Stuart,FL ► City of Chesapeake,VA / City of North Augusta,SC ► City of Suffolk VA / City of Clearwater,FL / City of Pinellas Park,FL ► City of Titusville,FL / City of Dunham,NC ► City of Poquoson,VA / City of Vero Beach,FL 1 City of Fairfax,VA / City of Port St.Lucie,FL / City of Winston-Salem,NC / City of Fayetteville,NC ► City of Portsmouth,VA ► Town of Cary, NC / City of Greenville,NC / City of Raleigh,NC ► Town of Fuquay-Varina,NC / City of Hampton,VA / City of Reidsville,NC ► Town of Lillington,NC ► City of Harlem,GA ► City of Roanoke,VA / Town of Smithfield,NC ► City of High Point,NC / City of Salem,VA 1 Town of Eatonville,FL / City of Hopewell,VA / Atlanta Public Schools,GA / Hopewell,VA ► Richmond,VA ► Asheboro City Board of Education,NC ► Isle of Wright,VA ► Roanoke County, VA ► Charlottesville,VA / Johnston County Schools,NC / Sarasota County,FL / Chesapeake,VA / Loudon County,VA / Spartanburg County School District / Chesterfield County,VA / New Hanover County Schools,NC Four,SC / Collier County,FL / Newport News,VA ► Spotsylvania County,VA / Cumberland County Board of / Orange County,FL ► St.Johns County,FL Education,NC / Polk County,FL ► St.Lucie County, FL DeKalb County School District,GA 1 Portsmouth,VA 1 Suffolk,VA / Duval County,FL / Poquoson,VA ► Volusia County,FL Fulton County Schools,GA 1 Prince William County,VA ► York County,VA ► Hampton,VA ► Atlanta Workforce Development ► McDuffie County Hospital Authority,GA ► Piedmont Triad Regional Water Agency ► Metropolitan Atlanta Rapid Transit Authority,NC ► Augusta Canal Authority,GA Authority(MARTA) ► RDU Airport Authority,NC ► Burke County Hospital Authority,GA / Metropolitan Washington Airports ► Renewable Water Resources,SC / Central Florida Regional Transit Authority ► Richmond Metropolitan Transportation Authority(LYNX) ► Miami International Airport Authority,VA ► Cleveland County Water,NC ► Newport News Industrial Development ► Richmond Ambulance Authority,VA ► ElectriCities of North Carolina,Inc. Authority,VA ► Santee Cooper,SC(electric ► Enterprise Florida,Inc.and affiliates ► North Carolina Eastern Municipal Power generation, transmission and ► Florida Development Finance Agency distribution) Corporation ► North Carolina Educational Lottery / Sarasota Manatee Airport ► Fort Monroe Authority,VA ► North Carolina Finance Agricultural Authority,FL ► Fulton-Dekalb Hospital Authority,GA Authority ► Spartanburg County Public Library,SC / Georgia Department of Labor / North Carolina Turnpike Authority ► State of Florida Agency for Health / Greenville-Spartanburg Airport 1 Orange County Educational Facilities Care Administration Commission Authority ► Tampa Port Authority,FL ► Greer Commission of Public Works,SC ► Orange County Health Facilities ► Tampa Bay Estuary Program,FL / Handy Sanitary Water Authority,NC Authority ► Tampa Bay Regional Planning ► Henrico Economic Development ► Orange County Library District Council Authority / Piedmont Municipal Power Agency,SC ► University of South Florida ► International Drive Master Transit Foundation and Improvement District ► Upper Occoquan Service Au / Juvenile Welfare Board,FL r Cherry Bekaertezi Your as,Je'orward Cbh.Com 10 Proposal to provide external audit services City of Ocoee, Florida ► ATU Local 1577 Pension Plan ► Palm Beach Gardens Police Officers' ► Town of Jupiter Police Officers' ► ATU Local 1596 Pension Plan Pension Fund Retirement Fund ► Boynton Beach General Employees' ® Retirement System for the General Retirement Fund Employees of the Utility Board of the City of Key West A representative listing of Florida government entities the Orlando office professionals served over the last five years follows: Engagement Principal Client Government Clients .. . ..Scope of tterk Date Partners Contact Cities and Towns Dorothy Ecklund City of Lake Wales Financial and compliance audit 2014—Present Ron Conrad 863.678.4182 Peter Lear City of North Port, FL Financial and compliance audit 2010—2012 Ron Conrad 949.429.7172 Edwin M. Fry City of Port St. Lucie Financial and compliance audit 2013—Present Ron Conrad 772.871.5191 Jim Burdick/ Alfredo Rivera City of South Miami Financial and compliance audit 2013-2015 Ron Conrad 305.663.6343 Joly Bogliolio City of Stuart, FL Financial and compliance audit 2006—2016 Ron Conrad 772.220.3933 Bridgette Clements City of Titusville, FL Financial and compliance audit 2012—2016 Ron Conrad 321.567.3712 Cindy Lawson City of Vero Beach Financial and compliance audit 2014— Present Ron Conrad 772.978.4770 Katrina Gibson Town of Eatonville, FL Financial and compliance audit 2008—Present Ron Conrad 407.623.8900 Counties Ann Larrivee Charlotte County, FL Financial and compliance audit 2005— Present Ron Conrad 941.743.1412 Ron Conrad, Ajay Gaggar Hillsborough County, FL Financial and compliance audit 2010—Present John Gilberto 813.307.7026 Ron Conrad, Kevin Madok Monroe County, FL Financial and compliance audit 2003— Present Eddie Burke 305.292.4480 Robin Ragaglia Orange County, FL Financial and compliance audit 2001 — Present Ron Conrad 407.836.5720 r„% Cherry Bekaert r,tr gtuQc Nrward cbh.com 11 4 , �}Mn Proposal to provide external audit services City of Ocoee, Florida School Districts Robert Spencer Collier County, FL Financial and compliance audit 1999— Present Ron Conrad 239.377.0036 Cindy Hill Duval County, FL Financial and compliance audit 2011 —Present Ron Conrad 904.390.2317 Catherine Nguyen Orange County , FL Financial and compliance audit 2015—Present Ron Conrad 407.2'7.3200 Financial and compliance audit; Sarah Graber Osceola County, FL Internal accounts audit 2002—2016 Ron Conrad 407.870.4823 Dave Denbow Polk County, FL Financial and compliance audit 2010—Present Ron Conrad 863.534.0539 Financial and compliance audit; Camille Hooper St. Lucie County, FL Internal accounts audit 2007— Present Ron Conrad 772.336.6980 Michael Deguitis St. Johns County, FL Financial and compliance audit 2014—Present Ron Conrad 904.547.7651 Financial and compliance audit; Bertie Trawick Volusia County, FL Internal accounts audit 2015-Present Ron Conrad 386.734.7190 Authorities,Commissions and Agencies Central Florida Regional I Blanche Sherman Transit Authority(LYNX) Financial and compliance audit 2005—Present Ron Conrad 407.254.6100 Robert Schlotman Enterprise Florida, Inc. Financial and compliance audit 2007—Present Ron Conrad 407.956.5600 Florida Development Finance Bill Spivey Corporation Financial and compliance audit 2007—Present Ron Conrad 407.956.5600 International Drive Master Luanne Brooks Transit and Improvement Financial and compliance audit 2001 —Present Ron Conrad 407.248.9590 nistrint Orange County Educational Robin Ragaglia Facilities Authority Financial and compliance audit 2001 —Present Ron Conrad 407.836.5720 Orange County Health Robin Ragaglia Facilities Financial and compliance audit 2001 —Present Ron Conrad 407.836.5720 Orange County Library Bob Tessier System Financial and compliance audit 2001 — Present Ron Conrad 407.835.7620 Lisa Smith State of Florida Compliance attestations 2003— Present Ron Conrad 850.412.4080 11.,'t Cherry Bekaert`'' , gu,3ttaY4:,ara cbh.com .12 Proposal to provide external audit services City of Ocoee, Florida Continuing Professional Education At Cherry Bekaert, we consider the training of our professionals to be extremely important in order to best meet the evolving needs of our profession and provide the highest quality of service to our clients. We believe that in order to consistently offer our clients the most current information, continuing education of our personnel is a must. It is the policy of Cherry Bekaert that all professional personnel comply with the continuing professional education requirements of the AICPA, the SEC Practice Section of the AICPA Division for Firms, the appropriate state boards of accountancy, the U.S. Government Accountability Office, Yellow Book requirements and other regulatory agencies as applicable; that all professional staff maintain an adequate awareness and understanding of current developments in technical literature; and that all professional staff assist in the training and development of staff members under their supervision. In our commitment to training, we require all client service professionals, including CPAs and non-CPAs to complete at least 20 hours of qualifying continuing professional education (CPE) every year and at least 120 hours every three years. In addition, all client service professionals who serve governmental entities are required to complete 80 hours of CPE every 2 years with at least 24 hours in subjects that directly relate to government auditing and/or the government environment. CPE requirements are met through Cherry Bekaert hosted wehinars and live seminars throughout the year. Our professionals are also encouraged to use resources such as AICPA. FICPA, GFOA, and FGFOA to fulfill required credit hours. Lxpelience with the GFOA Certificate of Achievement for Excellence in Financial Reporting Over the years, Cherry Bekaert has assisted in preparing many Comprehensive Annual Financial Report(CAFR)and applying for and receiving 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 help you to receive this award every year. Cherry Bekaert 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, our proposed engagement partner, has served on the Certificate Review Committee for 17 years. Peer Reviews Peer reviews are intensive reviews of a firm's quality system applicable to its accounting and auditing practice. These reviews are performed by certified public accountants from American Institute of Certified Public Accountants (AICPA) division member firms in accordance with standards established by the AICPA. The review evaluates the firm's policies and procedures and reviews a sample of the firm's engagements to determine compliance. The work of the reviewers is in turn reviewed by the independent Oversight Board and by the AICPA. A formal report, which is available to the public, is then issued. Cherry Bekaert has passed, without exception, eleven consecutive peer reviews conducted under the auspices of the AICPA. A copy of our most recent peer review report, for the year ended April 30, 2016, is included as Appendix A of this proposal. The reviews included a number of specific government engagements o,"► Cherry Bekaert cbh.com Proposal to provide external audit services City of Ocoee, Florida Management Advisory Services We offer a full range of organizational and business advisory services. Cherry Bekaert'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: Financial Management: • Unrelated business income tax issues(UBIT) • Internal Audit • Mergers, acquisitions, reorganizations and • Grant compliance assistance liquidations • Subrecipient monitoring • Disclosure compliance reviews • Financial and profit sharing • IRS penalty exposure reviews • Cash flow and cash management • State and local tax matters • Bookkeeping services Business Planning: • Assistance with budget preparation • New business start-up assistance • Overhead expenditure budgeting systems • Economic feasibility studies Organization and Personnel: • Evaluation of long-range plans • Organizational studies and reviews • Business evaluations of mergers • Compensation studies and incentive plans • Disaster planning • Executive compensation and recruitment • Business Valuation • Succession management Information Resource Studies: • Benefit plan structuring • Systems analysis, review and planning • Review of accounting systems • Information resource requirements Muunicipiat Bond Offerings Cherry Bekaert professionals have worked with numerous bond offerings and arbitrage calculations related to outstanding debt. Our work has included consent letters, agreed-upon procedures, assistance with preparation of Official Statements and other aspects related to municipal bond offerings. Since our local practice focuses on government services, a large number of our clients have bonds outstanding and we regularly address bond covenant matters. We are well prepared to assist the City with regard to municipal financing activities. Cherry Bekaert tie1,,,vo, cbh.com jr Sr* Proposal to provide external audit services City of Ocoee, Florida F. Personnel Qualifications Resumes for our proposed engagement team are provided on the following pages. Our engagement partner, managers and seniors are all located in the Orlando office. Ron Conrad,CPA Engagement Partner John Gilberto,CPA Eddie Burke,CPA Quality Review Partner Consulting Partner Neal Beggan,CISA IT Partner Brian Liffick,CPA Brandi Grovac,CPA Audit Manager Audit Manager Richard Crawford,CPA John Rounds Senior Auditor Senior Auditor %.°14 Cherry Bekaert" .0 g Je forward cbh.com 15 Proposal to provide external audit services City of Ocoee, Florida Relevant Experience: Ronald A. Conrad, CPA Engagement Partner ► City of Clearwater, Florida Ron is a Certified Public Accountant, licensed to practice in the State of ► City of Ft. Myers, Florida Florida, with over 35 years of public accounting experience. Ron is the ► City of Haines City, Florida firm's technical director of government services and has 20 years of ► City of Lake Wales, Florida r' experience with Deloitte, where he led Central Florida government ► City of Maitland, Florida services for a decade, authored Deloitte's national book on public sector accounting and auditing developments and was a designated ► City of North Port, Florida compliance specialist. ► City of Pinellas Park, Florida Ron is currently the engagement partner for each of our references in this proposal, as ► City of Port St. Lucie, Florida well as numerous other cities and special districts. He also manages the Orlando office. ► City of South Miami, Florida In addition to his client service responsibilities, Ron is the firm's technical service ► City of Stuart, Florida director for the government industry, responsible for monitoring industry accounting 1 City of St. Petersburg, Florida and auditing developments, for coordination of the firm's industry training and for ► City of Titusville, Florida development of technical assistance for industry clients. He also is a frequent speaker ► City of Vero Beach, Florida on government industry matters, has served for seventeen years as a reviewer for ► City of Winter Park, Florida the GFOA Certificate of Achievement for Excellence in Financial Reporting program and serves on the Executive Committee for the AICPA Government Audit Quality ► Town of Eatonville, Florida Center. 1 Village of Palmetto Bay, Florida As engagement partner, Ron will be responsible for the overall audit engagement. He will ► Hillsborough County Aviation Authority, FL coordinate the right resources at the right time to best serve your needs. He offers ► Greater Orlando Aviation Authority, innovative business advice and high-quality, proactive service. FL Ron earned his Bachelor of Arts in Business Administration from Iowa Wesleyan College. 1 Charlotte County, Florida He is a member of the American Institute of Certified Public Accountants (AICPA), Florida ► Central Florida Regional Institute of Certified Public Accountants (FICPA), Florida Government Finance Officers Transportation Authority(LYNX) Association(FGFOA)and Government Finance Officers Association(GFOA). ► Hillsborough County, Florida Ron has more than 40 hours of relevant continuing education during each of the ► Lee County, Florida last three years, including the continuing education required by Government ► Martin County, Florida Auditing Standards. 1 Monroe County, Florida ► Orange County, Florida 1 Orlando-Orange County Expressway Authority ► State of Florida Cherry Bekaert"' cbh.com 16 • Proposal to provide external audit services City of Ocoee, Florida Relevant Experience: ► Fairfax County, Virginia John has over 25 years of public accounting experience providing audit and accounting services for state and local government entities and is ► Hillsborough County, Florida ► Lee County, Florida the Director of Cherry Bekaert's Government Services Group. He is currently the engagement partner for Hillsborough County, Prince ► Prince William County, VA William County, VA, Fairfax County,VA, Sarasota County District School ► Mecklenburg County. NC Board, the City of St. Petersburg, the City of Clearwater,the City of ► Sarasota County District School Pinellas Park and other notable government organizations. Board ► Lee County District School As the Director of our Government Services group, John is also actively involved Board with our client services firm-wide. ► City of St. Petersburg, Florida John has authored government industry articles and is a frequent speaker and ► City of Clearwater, FL instructor at industry conferences. He has been a member of the AICPA state and ► City of Pinellas Park, Florida local government expert panel and FGFOA technical resource committee. He is ► City of Durham, NC currently a member of the AICPA Governmental Accounting and Auditing Update ► City of High Point, NC Committee(GAAC). ► City of Jacksonville, NC As a quality review partner, John will be responsible for second partner review of ► City of Kinston, NC work performed,the financial statements and auditor reports prior to issuance. ► City of Norfolk, VA John received his Bachelors of Business Administration in Accounting from Guilford ► City of Sanford, NC College and his Masters in Business Administration from the University of North ► Onslow, Orange and Neuse Carolina Chapel Hill. He is a member of the American Institute of Certified Public Water and Sewer Authorities Accountants(AICPA), Florida Institute of Certified Public Accountants(FICPA),the ► Pinellas County Licensing Board Florida Government Finance Officers Association(FGFOA)and Virginia ► Sarasota Manatee Airport Government Finance Officers Association(VGFOA). Authority, Florida ► Tampa Bay Regional Planning John has more than 40 hours of relevant continuing education during each of Council the last three years, including the continuing education required by ► Tampa Bay Estuary Fund Government Auditing Standards. ► Tampa Port Authority �, rt ir, � r ■k Cherry Bekaert"` cbh.com 1 7 " V ` " Proposal to provide external audit services City of Ocoee, Florida Relevant Experience Eddie is a Certified Public Accountant with over 35 years of ► Monroe County, FL experience in public accounting. Eddie has provided a variety of audit ► Sarasota Airport, FL and accounting services to all sizes of governments including: many ► Sarasota School Board Internal Accounts, FL ,A types of financial statement audits and attestation services, fraud investigations, internal control analysis, accounting policy and ► City of Ft Myers, FL 1 City of Asheville, NC procedure development, contract internal auditing and internal 1 City of Charlotte, NC monitoring, developing management anti-fraud programs and controls, quality assurance ► City of Durham, NC reviews,training, and assisting clients with obtaining the GFOA Certificate of ► City of Fayetteville, NC Achievement for Excellence in Financial Reporting. ► City of High Point, NC Annually, Eddie also serves as Engagement Partner or Concurring Reviewer for ► City of Portsmouth, VA ► City of Raleigh, NC over 50 local governments and various authorities throughout the Southeast. He ► City of Richmond, VA has served as the engagement partner for Monroe County, Florida for the past 9 1 City of Suffolk, VA years. ► Guilford County, NC Eddie is a valued instructor and speaker for Firm-sponsored governmental 1 Durham County, NC updates. He is a member of the AICPA, North Carolina Association of Certified 1 Cumberland County, NC Public Accountants(NCACPA), South Carolina Association of Certified Public ► Forsyth County, NC Accountants(SCACPA), and Florida Institute of Certified Public Accountants ► Mecklenburg County, NC (FICPA). He currently serves on the GFOA Special Review Committee, the ► Randolph County, NC ► Roanoke County, VA NCACPA Government Audit Committee and the NCACPA Not-For-Profit Audit ► Union County, NC Committee. ► Town of Cary, NC Eddie holds a Bachelor of Science in Accounting from Elon University. ► Town of Wake Forest, NC ► Town of Holly Springs, NC Eddie has more than 40 hours of relevant continuing education during each 1 Town of Fuquay-Varina, NC of the last three years, including the continuing education required by ► Cleveland County Water, NC Government Auditing Standards. ► Metropolitan Sewerage District of Buncombe County ► Public Library of Charlotte ► CoastalCare, NC ► Alliance Behavioral Healthcare, NC ► Mecklenburg County EMS, NC ► NC Agricultural Finance Authority ► NC Turnpike Authority ► Charlotte Firefighters, NC ► Loudoun County Pub `o% Cherry Bekaert"" cbh.com 1 p Proposal to provide external audit services 0-* City of Ocoee, Florida Relevant Experience: z,7 1:14:::!g(i-O mY — itq a . .'1;i...':§ ► City of Titusville, Florida Neal is a Partner in the Information Technology Audit Group(ITAG) of Cherry Bekaert. With the professional designation as a Certified ► City of Chesapeake. Virginia `„ Information Systems Auditor (CISA), he has approximately fifteen ► City of Hampton, Virginia years of IT audit, consulting and compliance experience, including ► City of Newport News, Virginia ►"'� planning, managing and performing information technology reviews for ► City of Portsmouth, Virginia compliance with Sarbanes-Oxley(SOX)404, FISCAM, FFMIA, JFMIP, 1 City of Charlottesville, Virginia OMB A0123, OMB A-130 and SAS 70 requirements to Federal, state, and local ► Raleigh Durham Airport(RDU governments, as well as toll industry information systems. Airport) Neal will be responsible for leading the performance and direct review of information ► Capital Region Airport Commission, VA services technology services provided in connection with our audits and for consultation regarding information technology matters. He currently leads our firm's services Lee County Port Authority, FL (Southwest Florida International involving audits of information technology systems. Airport) Prior to joining Cherry Bekaert, Neal worked at an international accounting and ► Sarasota Manatee Airport. FL management firm as an IT manager where he was responsible for managing Sarbanes- 1 LYNX Oxley Act assistance projects for accelerated and non-accelerated filers across numerous ► MARTA industries. He provided end-to-end project management for clients to ensure compliance 1 Richmond Metropolitan Authority, with Sarbanes-Oxley 404 requirements, performed walkthroughs, testing and remediation VA for IT entity level controls, IT general controls and IT application controls, assisted in the ► Charlotte County, Florida design and implementation of baseline IT processes and controls and streamlined IT ► Hillsborough County, Florida control processes, reducing the number of key controls, and improving the efficiency of / Lee County, Florida testing the controls. ► Orange County, Florida Neal obtained a Bachelor of Business Administration in Finance with a concentration in ► Stafford County, Virginia Computer Information Systems (CIS) from James Madison University. He is a Certified ► Loudoun County, Virginia Information Systems Auditor (CISA) and is a member of the Information Systems Audit 1 Prince William County, Virginia Control Association(ISACA). 1 Orlando-Orange County Expressway Authority Cherry Bekaert"° . . • Yourguide forward cbh.com - �� yi Proposal to provide external audit services City of Ocoee, Florida Relevant Experience: Brian [Attic-A, CPA --v Audit Manager ► City of Stuart, FL Brian is a licensed Certified Public Accountant with seven years of ► City of Port St. Lucie, FL public accounting experience. He is a member of the Firm's GSG and ► City of Vero Beach, FL has considerable background with audits of state and federal grant compliance. He previously served as audit manager for the City as well 1 City of Lake Wales, FL as numerous other government entities. ► Orange County, FL ► Charlotte County, FL A Manager in the Firm's Audit practice, Brian focuses on financial reports, identification of 1 Town of Eatonville, FL key audit areas, testing design of key accounts and transaction cycles, and supervision of the engagement team. As audit manager, Brian will provide regular communication and ► Central Florida Regional Transportation Authority d/b/a will be responsible for planning, directing and reviewing performance of our work. LYNX, FL Brian received his Bachelor of Arts in Accounting and Finance from Manchester College in 1 International Drive Master Transit and Improvement Indiana. He is a member of the Florida Government Finance Officers Association District, FL (FGFOA), American Institute of Certified Public Accountants (AICPA), Florida Institute of 1 Orange County Educational Certified Public Accountants (FICPA), and the Indiana Institute of Certified Public Facilities Authority, FL Accountants(INCPA). ► Orange County Health Facilities Authority, FL Brian has more than 40 hours each year of relevant continuing education during the ► Enterprise Florida, Inc., FL last three years, including the continuing education required by Government Auditing Standards. 1 Florida Development Finance Corporation, FL ► Collier County District School Board ► Duval County District School Board ► Orange County Public Schools ► St. Lucie County District School Board ► Volusia County District School Board • t.ft Cherry Bekaert` Yotrgu,de(orward Cbh.COM 20 Proposal to provide external audit services • City of Ocoee, Florida • Relevant Experience: Brandi Grovac, CPA — Audit Manager Brandi is a licensed Certified Public Accountant with more than four years of ► City of Lake wales,FL public accounting experience, as well as prior experience serving as the ► City of Vero Beach,FL chief accountant for a private sector organization. ► City of Port St.Lucie,FL Brandi has served as lead for the audits of the City of Lake Wales, the City ► Town of Eatonville,FL of Port St. Lucie, the City of Vero Beach and the Town of Eatonville, as well ► Polk County School Board as other government organizations throughout the past three years. ► Orange County Public Schools Brandi received her Bachelor of Science in Accounting and her Master of Science in ► International Drive Master Transit Information Systems and Operations Management from the University of Florida and is a &Improvement District member of the American Institute of Certified Public Accountants(AICPA), Florida Institute ► State of Florida of Certified Public Accountants (FICPA) and Florida Government Finance Officers Association(FGFOA). Brandi has more than 40 hours each year of relevant continuing professional education during the last three years, including the continuing education required by Government Auditing Standards. This continuing education includes firm-sponsored training sessions and webinars, as well as external conferences. Brandi is licensed to practice as a certified public accountant in the State of Florida. "its -: � N4 Cherry Bekaert"" YCu,gu dz forward cbh.COm 21 Proposal to provide external audit services City of Ocoee, Florida Richard Crawford. GPA — Audit Senior Richard has approximately four years of experience auditing public Relevant Experience: sector entities, including significant experience serving Orange ► Orange County, Florida County, as well as significant experience in private industry. He will ► Orange County Health Facilities be responsible for performing on-site services. Authority Richard received his Bachelor of Science in Physics from Texas A&M ► Orange County Educational Facilities Authority University, his Masters of Business Administration from the University of Dallas, and his Master of Science in Accounting from the University of Central Florida. 1 City of Stuart, Florida ► Collier County District School Richard has more than 40 hours each year of relevant continuing education during Board the last three years, including the continuing education required by Government ► Duval County District School Auditing Standards. Board ► Enterprise Florida, Inc. ► ATU Local 1577 and 1596 Pension Plans ► Boynton Beach General Employees Retirement ► Palm Beach Gardens Pension Plans ► Town of Juniper Beach Police Officers Pension Plan ► South Miami Pension Plan ► State of Florida A s 1. Cherry Bekaert"" Your guide forward Cbh.com 22 Proposal to provide external audit services City of Ocoee, Florida Relevant Experience: ► City of Titusville j3 John has more than four years of public accounting experience with ► Town of Eatonville Cherry Bekaert, serving numerous government organizations. John will be responsible for performing on-site fieldwork. ► Duval County District School Board F ► Polk County District School Board r, John received both his Bachelor of Science in Business Administration and ► Orange County,Florida his Master of Business Administration at the University of Central Florida. He is a member ► State of Florida of the Florida Government Finance Officers Association(FGFOA). ► Osceola County School Board Internal Accounts John has more than 40 hours each year of relevant continuing education during the last three years, including the continuing education required by Government ► Seminole County School Board Internal Accounts Auditing Standards. ► St.Lucie District School Board and Internal Accounts ► Volusia County School Board and Internal Accounts • `0► Cherry Bekaert— . You:qtmie leeward Cbh.COm 23 Proposal to provide external audit services City of Ocoee, Florida Staff Continuity and Rotation 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 the beginning to end of an engagement and from year to year. Our high percentage of partners and managers relative to our overall personnel allows Cherry Bekaert 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. In the mentoring and development of our staff, we normally experience a progression of staff responsibility during the years of service on the engagement. The result of this progression, as well an exceptional annual retention rate, has provided a considerable depth of knowiedge among our professionals. In the event of departure at any level of professional, Cherry Bekaert has the ability to replace with anotherprofessional with similar knowledge and capability. If at any time Cherry Bekaert needed to rotate an engagement partner, manager, or other supervisory staff due to the individual leaving the firm, or if they were promoted or are assigned to another office, we would consult the City before any new staff member was added to the engagement. r,"► Cherry Bekaert ,ar g ae toward cbh.com fi 24 C=l 8' iatRih¢tr- Proposal to provide external audit services City of Ocoee, Florida G. Audit Approach Technical Approach Scope of Services We have read and understand the scope of services as described in the RFP published by the City. We agree to this scope of services and have provided our audit approach below. Philosophy The Governmental Accounting Standards Board, in its Concept Statement#1, identified three objectives to governmental financial reporting: accountability, evaluation and planning. However, due to the unique stewardship responsibilities associated with the power to tax citizens, the document points out that "Accountability is the cornerstone of all financial reporting in government."As our discussion below explains in further detail, the focus on accountability influences the manner in which we treat materiality, and in the way we evaluate risk on a governmental audit engagement. We also realize that it takes a collaborative effort between the Auditor and the City to achieve a system of procedures and controls that assures accountability of public funds while maximizing the use of available City resources. Planning We have a major emphasis on audit planning, which includes meetings and discussions with key designated personnel of the City. New requirements, internal audit involvement, matters related to operational developments, scheduling, personnel assignments, expectations and areas for improvement are all subject matters included in planning process communication. As part of our approach, our extensive experience working with internal audit departments as part of our audit team will be utilized in providing for an effective working relationship. Approach to Preparing Work Plan As noted above, proper planning is the cornerstone to any successful venture. Our work plan will be developed with appropriate management personnel of the City following contract award. During our planning meeting, your Cherry Bekaert engagement team will discuss with you the stated deadlines and mutually agree on a work timeline with the key end dates as the driving force. The work plan will detail out the timing, nature and extent of the requirements of the audit, including, but not limited to, implementation of new accounting pronouncements and auditing standards, changes in internal control systems and operations and programs and financial and other management information systems documentation van. Cherry Bekaert" 3 eJ,.rwart ebh.eom 25 s ,- Proposal to provide external audit services City of Ocoee, Florida Risk Assessment We believe that our experience with local governments is invaluable when it comes to risk assessment. The vastly different types of services and the tendency for local governments to be more decentralized require a different approach than would be taken with a traditional business. Also, our concept of "materiality" is different. For example, certain collection points may not be material to the financial statements; however, because of the nature of the service, we may assign it a high audit risk. As a result, we may visit that collection point and other satellite offices where fees are collected to document controls and test those controls as needed. Time and Cost Sensitivity Cherry Bekaert's knowledge and experience of Florida cities, in general, will enable us to provide highly efficient and effective audits, minimizing disruption. We will provide local and firm-wide commitment, with high priority always provided to serving the City. In addition, we will provide high a level of partner and manager interaction to ensure that issues are promptly identified and resolved. We understand the importance of providing a product that is timely and cost-effective, as well as of a high quality. Communication Philosophy At Cherry Bekaert, we emphasize the value of communication with our clients. Open and regular communication is a part of our Firm's culture and an integral part of our service philosophy. We will meet regularly with City management to: • Discuss operations and seamlessly deliver service • Determine accounting and reporting strategies for operations and special transactions • Discuss newly issued accounting pronouncements and implementation issues Open, candid communication with management will occur throughout the year as well as through formal correspondence required by auditing standards. We will meet with management prior to beginning the audit to discuss expectations and the timeline for our work. At the completion of the audit, we will meet with the City's designated management to review our findings and other items that may assist the Commission in its fiduciary responsibilities. As appropriate, we will issue a management letter with items related to internal control practices as well as recommendations for improving management of, and control over, City resources. We believe communication throughout the audit process is critical to meeting your expectations for your audit firm and an integral part of an effective and efficient audit.We will bring to the attention of management any accounting or internal control issues noted during the course of the audit as soon as they arise, so they can be resolved as quickly as possible. We will also communicate opportunities for improvements in internal control informally during the course of the audit to allow immediate consideration, and will formally communicate those opportunities in a management letter at the conclusion of the audit. `g% Cherry Bekaert " cbh.com 26 Proposal to provide external audit services City of Ocoee, Florida • In addition to accounting issues noted during the audit, we will alert you to developing accounting standards that we believe would be of interest to you. In most situations, accounting and internal control matters are identified, communicated and resolved as a normal part of the audit process. However, should there be items of such magnitude or significance that warrant communication to management prior to our next scheduled meeting, we will do so immediately. Smooth Transition Cherry Bekaert recognizes the demanding environment in which the City operates; therefore, our goal is to provide a smooth and painless transition. A smooth transition begins with detailed planning of the process and execution by the right people with the right experience. We are committed to assign a senior-level engagement team with the skills necessary to execute the transition. Our management team's initial time investment to fully understand your operations will enhance our ability to serve you effectively on a long-term basis and will allow us to minimize the burden on your management. A planning meeting will be held immediately to discuss your system and assistance. At the completion of that meeting a schedule of documents to be provided, with dates needed, will be generated. Beginning and ending dates for fieldwork will be established along with benchmark dates for meeting with you to discuss engagement progress. Our experience with other cities has helped us develop an approach to efficiently assess risk and to apply the appropriate procedures to the critical areas that are consistent. We assign staff who know the unique aspects of cities and who are prepared to work efficiently to complete the engagement on a timely basis. We are confident we can work with the City's staff to meet the reporting deadlines. Cherry Bekaert will develop with the City a timetable of steps to allow us to learn about your institution and the types and levels of assistance that are available from your accounting department. Normally, the format and types of information you have been providing to your current auditors are similar to our requests and will not need to be significantly revised. We will absorb the initial cost associated with changing auditors. We will not bill you for the professional fees we incur related to the transition to Cherry Bekaert, including the client acceptance process, review of predecessor auditor working papers, and initial engagement management visits to your locations for the purpose of establishing a better understanding of your business and coordinating the delivery of our services. Also, we will work with City personnel to provide necessary training. K r,"ts Cherry Bekaert Yost go,ce(crviaa Cbh.Com 27 Proposal to provide external audit services City of Ocoee, Florida Proposed Segmentation of the Engagement Our approach will focus on addressing accounting and auditing issues early and assisting the City, as necessary, to provide a smooth audit at year-end. In addition to planning communications, we will communicate results of our interim procedures 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 expectations and appropriately addresses areas of audit and business risk. Communication aspects regarding audit progress and accounting and auditing issues will be incorporated in this plan, along with a list of schedules to be prepared during each fiscal year subject to audit. Our audit approach will be divided into four segments: ► Segment I: Orientation and planning ► Segment II: Risk assessment procedures ► Segment III: Year-end audit procedures Segment IV: Reporting On a recurring basis, our interim audit procedures will be provided well before year end. Due to the timing of this proposal process,the following proposed timeline will apply: Planning > October October .7MEI00 Year-end >January - Audit February Procedures Delivery of March Audit Report 22nd Ca% Cherry Bekaert"° Yoargv,ae torvrar„ Cbh.00m - 28 Proposal to provide external audit services City of Ocoee, Florida The following chart shows the key procedures applied during each of the defined segments of the financial statement audit engagement: Segment 1 ': ► Meet with the appropriate City personnel to confirm the timing of our work and Orientation and review the preparation of schedules so that disruption of day-to-day operations can Planning be minimized ► Discuss the detailed plan for interim procedures with key representatives identified in the entrance conference; ► Obtain an understanding of the City's accounting policies and procedures, including the financial and other management information systems utilized by the City; ► Document understanding of the control environment, accounting systems, and control procedures, and assess the risk of fraud related to financial reporting and the misappropriation of assets; ► Review the City's current year's budget, the organization chart, investment and other fiscal policies and procedures, leases, debt documents and covenants, etc. Risk Assessment ► Acquire in-depth knowledge of the information systems equipment, software Procedures and systems in use through completion of a computer control evaluation; ► Review for possible areas of exposure in asset protection, custodianship and similar matters; P Inquiries of management and others; 1 Preliminary analytical procedures to identify potential risks of material misstatement and unusual or unexpected account balances; 1 Evaluate internal controls through inquiry, observation and inspections. ► Discussion among engagement team members about the susceptibility of the financial statements to material misstatements, areas of significant audit risk, areas susceptible to management override of controls, important control systems, and application of generally accepted accounting principles. r,•• Cherry Bekaert . �_. Your gu;de forward Cbh.com �'^• 29 Proposal to provide external audit services City of Ocoee, Florida The following graphic illustrates how our inherent risk assessment combines with our internal control documentation and testing to generate our Risk Assessment Synthesis, which provides our detailed guidance for customizing our further audit procedures based on our risk assessments. p,ASK Ass „i„„! 1�Gpn 1� procedures 4irye 0,- 44, 0 SWOT c� \a0 ef�ai .CX` 5- ..�4"Y.k Assn,. Anetys5 � ��' •waaknetsw u' nuruties RISK ASSESSMENT SYNTHESIS(RAS) x , A wun�ow . %nrCee4prfitxty co+)4R F 0rnuntatia+M ""t" W 0t R` XSK ASSeS� r� Cherry Bekaert- Yaurguid_jcrvwd cbh.com 30 IY ii �� 4hM . "" Proposal to provide external audit services City of Ocoee, Florida Segmenta. Year End Audit ► Year End Audit Procedures include: Procedures • Test internal controls as deemed cost effective by examining detailed transactions, using audit sampling techniques and substantive testing; • Obtain listing of cash and investments for confirmation purposes; • Prepare year-end audit programs, which reflect interim findings; • Meet with appropriate personnel to discuss status of audit and preliminary findings; • Confirm cash, investments and bonds payable; • Review cut-off receivable balances and test amounts recorded; • Conduct an analytical review of account balances; • Review calculations for doubtful accounts, prepayments and accruals; • Vouch property additions, analyzing changes for appropriate accounting and test depreciation; • Test bond covenant compliance; • Test accounts payable cut-off through analysis of disbursements; • Complete additional audit procedures as required for Federal and State Single Audits, • Review the financial statements, related notes and supplementary information, comparing to audited amounts; • Detailed review of workpapers by the manager and engagement partner; Planning for this segment includes: • Obtain excerpts of pertinent sources to determine the laws and regulations that will be subject to testing; • Develop detailed audit programs to test compliance with laws and regulations; • Prepare detailed audit programs based upon the evaluation of internal controls. %,,•I4 Cherry Bekaert roar,o:a,.to,w,4rcbh.coms 31 Proposal to provide external audit services City of Ocoee, Florida Segment 4 Reporting )• Reporting procedures consist of • Preparation of a draft of the audit report, compliance and internal control reports, and management letter, including review by a partner with extensive experience in governmental and compliance audits, who has not been associated with performance of the audit(quality review partner) and review of the GFOA Certificate of Achievement checklist; • 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; • Exit conference with appropriate City personnel, including the Mayor and City Council members; • Presentation of audit results to the City Council. Reports to be issued for the City: • Independent Auditor's Report on the fair presentation of the financial statements in accordance with generally accepted accounting principals; • Independent Auditor's 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; • Independent Auditor's Report on Compliance With Requirements Applicable to Each Major Federal Awards Program and Internal Control Over Compliance In Accordance With Uniform Guidance, as applicable; • A schedule of findings and questioned costs; • Independent Auditor's Management Letter; • Data Collection Form to the Federal Audit Clearinghouse (SF-SAC) as required by Uniform Guidance; • Any other reports required as part of the financial audit process. •,.at Cherry Bekaert Vow gi,il'joy ,lr.; cbh.com 3 Proposal to provide external audit services City of Ocoee, Florida Proven Ability to Meet Stated Service Deadlines As our references will attest, Cherry Bekaert has a history of providing timely services, with significant management involvement, which enables us to control project cost. We provide our clients with services that meet their time frames and budgets,just as we are committed to meeting the City's time frame and budget. A primary factor in our ability to provide timely and quality services is our local office commitment. Another factor that helps ensure timely service is our industry specialization. The professionals who serve our clients have an excellent understanding of the environment in which their clients operate. As a result, our professionals require little "on-the-job"training. In addition, the high level of partner and manager interaction we provide helps ensure that any budget or time issues are promptly identified and resolved. We understand the importance of providing a product that is timely and cost-effective, and we are committed to meeting the schedule delineated in the RFP. Estimated Audit Hours by Level Segment Partn Manager Senior Staff TOTAL Segment 1 —Orientation and 16 20 50 6 92 Planning Segment 2—Risk Assessment 4 8 20 3 35 Procedures Segment 3—Year-end Audit 28 26 180 105 339 Procedures Segment 4-Reporting 28 24 60 46 158 TOTAL 76 78 310 160 624 * The above does not include Single Audit services. Should a Single Audit be required for one grant, 50 associated hours are estimated to be added. taft Cherry Bekaert- . 5 : Your Gude forward Cbh.00m 33 Proposal to provide external audit services City of Ocoee, Florida Sampling and Sample Sizes 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; and ► Reducing unexplainable sample size variability. 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 and items selected for grant compliance testing, internal control testing and certain financial accounts. Sample size will vary based on materiality and the population being tested. Use of Technology/EDP Software Our audit of the City will feature the combined use of data analysis software, wireless technology and engagement management software. As such, our documentation is paperless, with procedures documented in an automated environment and files shared through wireless technology among engagement team members. Workpaper Management. Our workpapers are managed using CCH Engagement, a software package that allows us to prepare, review,transfer and manage our work in a paperless environment. 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 City's 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 the City's audit. Review and Auditing ERP Software.Firm-designated IT Audit Group(ITAG)consultants will perform the review of the City's information systems environment. Our ITAG group has experience auditing all major ERP packages. As such, we use tailored IT Audit programs based on your specific environment and the inner workings of specific software packages. The City will have the assurance of direct review by a senior level individual with significant experience directly related to information systems. Cherry Bekaert'° cbh.com 34 Proposal to provide external audit services City of Ocoee, Florida ITAG will work with the City to assess the effect of systems processing on the City's business and will assess the reliability of systems processing. They 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. Examples of computer controls that will be reviewed for each system in scope include the following: ► Access Conti. -The first and foremost responsibility of the City's Information Technology Department is to assure that logical and physical access to the City's information, network and computing facilities is based upon the City's needs 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. ► - 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. 1 Chance Managemelt!Proh!orn 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 IT organization and evaluates them against current best practices and the specific needs of the City. ► - 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. ► - 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. 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: '41P4'114 Cherry Bekaert Your guile tarward tbh.com 35 'fir" ruw z^§S Proposal to provide external audit services City of Ocoee, Florida 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. Our analytical procedures, which include comparisons of recorded amounts or ratios to expectations, involve developing expectations based on plausible relationships (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 year-end balance sheet amounts to expectations based on related data. ► 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. ► Analytical review at the financial statement level. Audit Approach to Risks 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. Approach to Determining Laws and Regulations We are quite familiar with compliance requirements applicable to the City. 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 financial statements and to determine whether they were carried out in accordance with the provisions of laws, rules and contracts. Our reports will note instances of noncompliance that could have a material effect on the City's financial statements. ,SAtta At %es% Cherry Bekaert`" cbh.com 3G • C7 Proposal to provide external audit services 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. 1 Review of investment and other pertinent policies related to financial matters. ► Review of bond documents. Florida Statutes. ► AICPA Statements on Auditing Standards. 1 Other applicable professional standards and guidance. App;c)acn to Compliance —Audit Sample Our sample sizes will consider audit risk through reliability and precision factors. AU Section 350 prescribes the criteria for developing sample sizes, which we have utilized based on varying degrees of reliance and confidence in internal control structure. Because our sample sizes are affected by many variables, as prescribed by AU Section 350, a statement about sample sizes cannot be made in absolute terms. However, with regard to sample selection, we generally will utilize statistically generated, representative sampling for internal control and compliance tests. Samples will also be used in conjunction with other tests of compliance(e.g., Florida Statutes, Ordinances, etc.). Review of internal Control Structure 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. 11,"% Cherry Bekaert ro, a,:<:.::ft.r„u,; cbh.com Proposal to provide external audit services City of Ocoee, Florida Adequate assessment of the City's internal control is a key component of the audit. Our audit procedures are tailored to address specific risks for each individual client. We obtain an understanding of an entity wide control environment during audit planning to provide us an understanding of "what can go wrong," and use that understanding as a basis in formulating our client service plan and our audit procedures. We use a variety of methods in obtaining our understanding of internal controls. Typically, these include interviewing entity personnel, observing processes and controls, walking through transactions from initiation to recording, and discussing controls and risks of fraud with various City personnel. We also utilize our information systems audit professionals in assessing controls and risks over information systems processing. We will communicate with management any weaknesses we may find in the internal controls or opportunities for strengthening controls or making processes more efficient. H. Price Proposal The Price Proposal is attached after I—Required Forms. 9- 'LJ �. 4.1114 Cherry Bekaert aft Yourguide forward cbh.com - 38 Proposal to provide external audit services City of Ocoee, Florida I. Required Forms ► Summary of Litigation ► Acknowledgment of Addenda(s) ► Price Proposal ► Conflict of Interest ► Company Information and Signature Sheet %No% Cherry Bekaert- Your guide forward Cbh.COm 39 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) As one of the nation's largest accounting firms, with thousands of clients, Cherry Bekaert is subject to potential claims in the ordinary course of business. During the past 5 years, there have been 3 claims filed against Cherry Bekaert. one of which involved client insolvency and which has been settled through mediation, one of which related to maximizing individual tax return deductions, which is currently being contested. and one of which involved not detecting alleged improper use of $2.3 million of restricted funds over a 5 year period, which is currently being contested. In the latter case, Cherry Bekaert was the auditor 6 years ago and prior, during the time approximately one-third of the alleged improper spending occurred. These cased do not have any impact on our ability to serve the City and are not considered significant financially to the Firm. They also do not involve_secvices praiideri by your pr • -• - • - --•• . •- • lanrlo offic¢ 13. ACKNOWLEDGMENT OF ADDENDA: Proposer acknowledges receipt of the following addenda: No. 1 Dated 8/30/17 No. 2 Dated 917/17 No. 3 Dated 9/13/17 u i ing ervices 16 PRICE PROPOSAL FORM RFP #17-005 AUDITING SERVICES COMPANY NAME Cherry Bekaert LLP A. ANNUAL PRICE PROPOSAL FOR AUDITING SERVICES AS DESCRIBED IN RFP #17-005 FOR FISCAL YEARS ENDING 2017, 2018, 2019: 2017 $ 58,000 00 2018 $ 58,000 . 00 2019 $ 58,000 00 TOTAL $ 174,000 00 B. ANNUAL PRICE PROPOSAL FOR SINGLE AUDIT FEE: 2017 $ 5,500 00 2018 $ 5,500 00 2019 $ 5,500 pp TOTAL $ 16,500 00 'F�T`"ZOTA i ng efvices C. ANNUAL PRICE PROPOSAL FOR ASSISTANCE AND/OR REVIEW OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR), IF REQUIRED: 2017 $ 2018 $ 2019 $ TOTAL $ (A renewal option for an additional two years may be negotiated for services provided in items A through C). * Pricing for the annual audit includes review of the CAFR and assistance regarding technical requirements. 9/13/17 Date Cherry Bekaert LLP Company Name AD0010078 License Number Ronald A. Conrad Authorized Officer (print) / JLc Authorized Signature �..�g.,�.� -�� u.i m ervices 26 e ocoee Honda EXHIBIT"G" RFP CONFLICT OF INTEREST DISCLOSURE FORM The award of this contract is subject to the provisions of Chapter 112, Florida Statutes. All Proposers must disclose within their Proposal: the name of any City of Ocoee employee, Mayor or City Commissioner, other City Official, or City Consultants, who owns assets or capital stock, directly or indirectly, in the Proposer's firm or any of its branches, or would directly or indirectly benefit by the profits or emoluments of this proposal. (Indirect ownership or benefit applies to any members of his or her immediate family.) Proposer 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, Proposer agrees to immediately notify the City in writing. The purpose of this disclosure form is to give the City the information needed to identify potential conflicts of interest for the City Commission, Evaluation Committee members, and other key City employees and consultants involved in the award of this contract. According to Chapter 112, Florida Statutes,the term "conflict of interest" "means a situation in which regard for a private interest tends to lead to disregard of a public duty or interest", and refers to situations in which financial or other personal considerations may adversely affect, or have the appearance of adversely affecting, an employee's professional judgment in exercising any City duty or responsibility in administration,management, instruction,research,or other professional activities. Please check one of the following statements and attach additional documentation if necessary: X To the best of our knowledge,the undersigned firm has no potential conflict of interest for this Proposal. The undersigned firm, by attachment to this form, submits information which may be a potential conflict of interest for this Proposal. Acknowledged by: Cherry Bekaert LLP Firm Name iLII a. c„,..sz Signature Ronald A. Conrad, Partner Name and Title(Print or Type) 9/13/17 Date 'RF 'ITTSAuditing services 27 RFP#17-005 COMPANY INFORMATION/SIGNATURE SHEET FAILURE TO COMPLY WITH THESE RFP INSTRUCTIONS WILL RESULT IN DISQUALIFICATION OF YOUR PROPOSAL. PLEASE SIGN BELOW AYI'ESTING 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 ILP 407-423-7911 COMPANY NAME TELEPHONE,f� CLUDE AREA CODE) FAX (INCLUDE�8� AREA CODE) raconrad@cbh.com E-MAIL ADDRESS 4,11-k IF REMITTANCE ADDRESS IS DIFFERENT AUTHORIZED SIGNATURE(manual) FROM PURCHASE ORDER ADDRESS, Ronald A. Conrad, Partner PLEASE INDICATE BELOW: NAME/TITLE(PLEASE PRINT) 800 N Magnolia Ave., Ste. 1300 STREET ADDRESS Orlando, FL 32803 CITY STATE ZIP FEDERAL ID# 56-0574444 Individual Corporation X Partnership Other(Specify) Sworn to and subscribed before me this / :3 71"day of .rj e. �-r ,20 i 7 . Personally Known or Produced Identification Notary Public-State of Florida (Type of Identification) County of Orange a"7eof Signature of Notary Publibli rO/ / 1‘(-1 ZA K Printed,typed or stamped Commissioned name of Notary Public it. Nix CAROL NADZAK MY COMMISSION I FE 157882 `: a• EXPIRES:December 2,2018 ••:;iy.0• Bonded Thu Notary Pubte UndeMiterS —I. u•i ing ervices 28 ;.mss Proposal to provide external audit services City of Ocoee, Florida Appendix A Petr( Review Repoj �/'-- tuMrAtrpe.UP L( NERAMPE " 0Iselin.Nt „ 400 T»2.245.7000 F 732'4517400 System Review Report January 10,2017 To the Partners of Cherry Bekaert LIP And the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Cherry Bekaert LIP(the firm),applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended April 30,2016. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities,if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable 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 therewith based on our review. The nature,objectives,scope,limitations of,and the procedures performed in a System Review are described in the standards at www.aicpa.orJt/prsummary. As required by the standards,engagements selected for review included engagements performed under Government Auditing Standards;audits of employee benefit plans,audits performed under FDICIA,and examinations of service organizations[Service Organizations Control(SOC)1 and SOC 2 engagements]. In our opinion,the system of quality control for the accounting and auditing practice of Cherry Bekaert LLP,applicable to engagements not subject to PCAOB permanent inspection in effect for the year ended April 30,2016,has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass,pass with deficiency(ies)or fail.Cherry Bekaert LIP has received a peer review rating of poss. EisnerAmper LLP Iselin,NJ i.', Cherry Bekaert'' y',ar(owrara cbh.com P 40 Proposal to provide external audit services City of Ocoee, Florida a American Institute of CPAs C PA) Peer Review Program 220 Leigh Farm Road Administered by the Naltonal Peer Review Commelee Durham.NC 27707-8110 January 13.2017 Howard Joseph Ries Cherry Bekaert LLP 200 S 10th St Ste 900 Richmond.VA 23219 Dear Mr.Ries- It is my pleasure to notify you that on January 12.2017 the National Peer Review Committee accepted the report on the most recent system peer review of your fine. The due date for your next review is October 31,2019 This as the date by which all review documents should be completed and submitted to the administering entity. As you know. the report had a peer review rating of pass. The C'ommmee asked rue to convey its congratulations to the firm. Sincerely. Michael Fawley Chair—National PRC nprc!tarcpa.org 9I9 4024502 cc.Marc T.Fogarty,Raymond R Quintin Firm Number 10011816 Review Number 451036 Letter ID'1139057A 7 I 919 402 4502 I F t 919 402 4876 I nprrIgaitpa.er9 `•• Cherry Bekaert`` ra, cbh.com 41 4. ,`c' Proposal to provide external audit services City of Ocoee, Florida Appendix B Drug-Free Workplace Cherry Bekaert is a Drug-Free Work Place. Certification of Non-Segregated Facilities Cherry Bekaert certifies that is does not and will not maintain or provide any segregated facilities at any of our office locations. Statement of Affirmation and Intent Cherry Bekaert declares that only persons or parties interested in this 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. We also certify that no City Commissioner, other City Official or City employee, directly or indirectly, owns assets or capital stock of the entity. No member of 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 we agree to immediately notify the City in writing. A careful examination of the scope of services, instructions and terms and conditions of this RFP has occurred. This proposal is made according to the provisions of the RFP and will meet or exceed the scope of services, requirements and standards contained in the RFP documents. We agree to abide by all terms and conditions of the RFP. Public Entity Crime Statement Cherry Bekaert has read and acknowledge the Public Entity Crime Statement and are in compliance. Insurance Cherry Bekaert complies with the insurance requirements specified in the RFP. %I all Cherry Bekaert` cbh.com 42