Item C32
Date:
costs
7 12.
Yes
OF
Date:
two
the contract an amount not to exceed
increased amount of $7, I 00 will allow
7 h 12.
Manager:
OMB/ Sto #1
#)
for
meeting on
6115/05
Agenda Deadline: 5/31/05
CONTRACT COSTS
Total Dollar Value of Contract: $ 100.00
Budgeted? y es~ No D Account Codes:
Grant: $ N/a
County Match: $
Current Year Portion: $ 36,100.00
001-06001-530340
-
-----
- - - -
-----
Estimated Ongoing Costs: $O.OO/yr
(Not included in dollar value above
COSTS
CONTRACT
In
Changes
Needed
NoD
YesD NaB
Date Out
Risk
#2
KPMG lU'
Suite 1600
111 North Orange Avenue
PO Box 3031
Orlando, FL 32802
Telephone 407 423 3426
Fax 407 648 8557
Internet wwwus.kpmg.com
and
Florida 13040
RE:
to
LeUer Datcd
21,
We are
FYE 2003
resources for Tasks 7
the same as the
terms and
letter.
upon the FYE
contact
to
at
If you
or me at
LLP
Monroe:
Title
Date
KPMG Cost Allocation
Page 1 of2
Zappulla-Sal
From: Yoki, Aharon W [ayoki@kpmg.com]
Sent: Tuesday, May 31, 20053:00 PM
To: 'Zappu lIa-Sal@MonroeCounty-FL.Gov'
Subject: RE: KPMG Cost Allocation
Sal,
In response to your email from earlier today and questions from the county attorney regarding the additional
resources that will be involved with the modification of the plan, the addendum includes an additional 41 hours at
the staff level and 8 hours at the manager level.
Tasks 7 - 12 relate to data gathering and plan preparation for Monroe County's Cost Allocation Plan. Additional
KPMG resources are described as follows:
The budget office requested a change in the plan output structure from previous plans that would consolidate
various direct cost pools and we confirmed how this data would be used during several meetings with the Clerk
Finance Office.
Additional staff time is spent conducting additional interviews with various county departments to gain a greater
understanding of how restructuring of the plan would benefit the individual departments. During meetings with
various County departments we reviewed the information requested from those departments for previous plans
and inquired into other statistical data that the County departments could provide including the structure of reports
and nature of the information that County departments could provide.
KPMG will modify the structure of the plan within the Cost Determination Model software in order to provide the
County with the requested changes in the plan. Several hours of time are required to prepare these modifications
within the software.
Several additional hours of manager review time are required by our internal quality review standards in order to
assess the changes from the previous plan.
I hope this helps answer your questions. Please let me know if I can be of further assistance.
Aharon
Aharon Y oki
KPMG Risk Advisory Services
407-563-3339 Office
321-277-2544 - Cell
407-648-8557 Fax
**********************************************************************
The information in this email is confidential and may be egally
5/31/2005
OF
Contract #
Contract
Contract Manager:Salvatore Zappulla
(Name)
for BOCC meeting on 8/18/2QQ4
Agenda Deadline:
Total Dollar Value
Budgeted?
Grant:
County Match:
CONTRACT COSTS
$29,000 Current Year
Account
-
----
-
~_._----,.~------~--
Ongoing Costs:
(Not included in dollar value above)
COSTS
For:
(eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Division Director
Changes
Date In Needed
YesDNo~
Date Out
Risk
YcsD
OMB Fonn Revised 9/11/95 Mer 112
KPMG llP
Suile 1600
111 North Orange Avenue
PO Box 3031
Orlando, FL 37802
felephone 407 423 3426
Fax 4C7 648 8557
21, 2004
Dear
to
to Monroe
servIces with
and A-87 for
County for FYE 2003 and FYE 2004. OUf standard Terms and Conditions are attached to this
letter, and become part of the agreement between KPMG LLP and Monroe County
government.
The OMB Circular A-87 plan will be prepared in accordance with Office of Management and
Budget Circular A-87, Cost Principles for State and Local Governments, as well as all other
applicable federal and state laws, regulations, and procedures, and will be used for charging
indirect costs to the County's federal grant programs. The second plan will be a "full-cost"
for use in indirect costs to certain
revenue
A-87 Cost
and
the
the to
its
necessary
note
its cost
with state
A-87
and un less
to certain
programs.
of its indirect
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to programs
is concerned with
the reimbursement
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assistance in
has the
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programs
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and
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to
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extensive 111 cost for cities
team members have numerous cost
cost rates. These are smce the
IS a cost
on OMB
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OMB Circular A-87.
Mr.
"wrote the
Our user Cost
cost allocation available in the
tie to the financial statements and
and review. We a
believes that the time involvement
to a
commits to
for the entire
the
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of
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FYE 2004 not exceed
and
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of the draft
IS
Services
the may use in lieu of a
renewal Jettel- and your to with this
the space and return to me at your earliest convenience.
973-00 i-OO-I) that
the to this
our with you
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We
yours,
LLP
Senior
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state
and to ensure, the rate
costs rates to ensure a reasonable cost
to as
revenue
County
meet this
To
II
A-87"
II and
based on actual data" The Plan wiU be prepared in accordance with the fuB costing
concepts, which and incorporates all central service expenditures of County
departments offices, including "general government" costs.
II
the
agency.
necessary
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on
cost
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the Cost
to
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costs to the
to distribute
any
the
associated
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the
cost rales.
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and
will
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as
costs the
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data
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each
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occur 110 later than 90
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year and is
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concepts that
including "general government"
costs related to
servIce
the
purposes
II and I as
in the
A-87
1:
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answers to
to
(As
cost rate to
State and
cost
years.
Phase ItA
of Full
Co.rt Allocation Plan
Phase
Development of
Phase LA OMB Circular A-87
Cost Allocation Plan
Preparation of OMB
Phase I.R Circular A-87 Cost
Allocation Plan
I-~---
Phase n.B
of" Fill!
Cost Allocatioll PlolI
5
Negutiation of OM B
Circular A-87
Allocation
It olJr
to be It is
that effective use may
also require temporary
we
the IS
that we time! y cooperation data so
of KPMG and County resources, as well as the CDM system. We
office space and telephone services local calls while on-site.
it is our to
the
are
and cost rate
year, in order to recover costs applicable to grants and contracts, as well as to
identify costs of revenue and state
and internal activities, state and local governments must develop a cost plan
for submission to its cognizant federal/state agency. The cost plan requires extensive
data gathering and analysis and does not lend to quality review and if manually
prepared. In response to time-consuming analytical effort, KPMG has developed an automated
indirect cost allocation model, Cost Model (CDM). CDM allows user to
create costing scenarios expending a great deal It is designed to be an
eftective management tool by providing essential information during the preparation and
negotiation of indirect cost proposals. Specific exclusi ve features of CDM include the following:
III
statement
cost
creates
and
statistics for the
of
or
to test new sets
In
can
cost rates, the
iii!
may use the to the
pr~ject reports that the
by each program or project and their operating
performance of a program or
revenues and expenditures of the
a
etc.
data.
or
same
cost
the
to the
into
cost centers or
and
each cost center or
to
cost centers or
on a
cost centers or
on a
to
was
the
ma
as an
the
of the
cost
KPM(; LLP
Standard Terms and Conditions
Services
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services may mclude advice and recommendations; hut
all decisions ill wnlle<.:llon with the implementation of
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(collectively "l.l3hilities") asserted hy any third
party against Client to the extent sllch Liabilities
result from the infringement by the Oeiiverables of
any third party's patents issued as of the datc ofthc
Engagement Lettcr, trade secret S, trademarks or
copyrights The preceding indemnification
provision shall not apply 10 any infringement
arising out of the following:
Revised 5/4/04
KPMG LLP
Standard Terms and Conditions
(i) LIse of the Deliverables other than In
accordance with applicahle documcntatlon or
instructions supplied by KPMG or other than
in accordance with Paragraph 8(b);
any alteration. modi fication or reVISion of the
Deliverable, not expressly agreed to in writing
by KPMG; or
(Iii) the combination of the Dehverab!es with
materials not supplied or approved by KPMG
(b) In case any of the Deliverables or any portion
thereof is held, or in KPMG's reasonable opinion is
likely to be held, in any such suit to constitutc
infringemellt, KPMG may, within a reasonable
time. at its option either:
(i) secure for Client the right to continue the use
of sllch infringing item; or
(Ii) replace, at KPMG's sole expellse, such item
with a substalltially equivalent non-infringing
item or modify such item so that it bccomes
non-infringing.
In the event KPMG is, in its reasonable discretion,
unable to perform either of options described in (i)
or (ii) above, Client shall return the Deliverable to
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constmed to limit KPMG's indemmfieation
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entire liability and Client's sole and exclusivc
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(a) Each party agrees to mdemnify, hold harmless and
defend the other party from and against any and all
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damage to or destruction of any tangible property.
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extent such Liabilities result from the negligcnce or
willful misconduct of the indemnifying party.
(b) Except as otherwise required by law, as pr:nlliltcu
by the Engagement Lctter, or as provided in
Paragraph l3(e) below with respect to any
proposed or completed transaction, Client
acknowledges and agrees that any advice.
recommendations, infom1ation or work product
provided to Client by KPMG ill connection with
Page 2
this engagement is for the confidential use of
Client. may not be relied upon by any third party
and Client will not disclose or pennit access to
sllch advice, recommendations. infonnation or
work pmduct to any third party or summarize or
refer to such advice, recommendations, lIlformation
or work product or to KPMG's engagement under
the Engagement Letter without, in each case,
KPMG's prior wrilten consent. III furth<:rancc of
the foregoing, Client will indemnify, defend and
hold harmless KPMG from and against any and all
Liabilities sutTered by or asserted against KPMG in
connection with a third party claim to the extent
resulting from such party's use or possession of or
reliance upon KPMG's advice, recommendations.
information or work product as a result of Client's
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Indemnifying Party. The party not conducting the
defense shall nonetheless have the right to
participate in such defense at its own expense. The
Illucmni lied Party shall have the right to approve
the settlement of any claim that imposes any
liability or obligation other than the payment of
money damages.
9. Cooperation; Use oflnformlltion.
(a) Clicut agrees to cooperate with KPMG in the
pcrformance of the services under the Engagemel1t
Letter and shall provide KPMG with timely access
to and use of Clicnt's personnel, facilities,
equipment, data and information to the extent
necessary for KPMG to perform the services under
the Engagement Letter. The Engagement Letter
may set forth additional obligations of Client in
connection with this engagement. Client
acknowledges that Client's failure to assign Client
personnel having skills commensurate with their
role with respect to this engagement could
adversely affect KPMG's ability to proVide the
servIces under the Engagement Letter.
(b) Client acknowledges and agrees that KPMG may,
in perfOlming its obligations pursuant to Ihls
Agreement, use data, material. and othcl
infom13tion furnished by Client wlthou! any
mdcpcndent investigation or verification ami that
KPMG shall be entitled to rely upon the accuracy
Revised 514104
KPMG LLP
Terms and Conditions
Services
and completeness of such infonnation ill
performing the services unaer the Engagement
Leiter.
10. Force Majellre. Neither Client nor KPMG shall be
liable for any delays resulting from circumstances or
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I L Limitation 011 Adil'lllS, No action, regardless of foml,
arising out of or relating to this engagement, may be
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such party under the Engagement Letter.
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or by implication, as an agent of the other or in any
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(a) "Confidential Information" means all documents,
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materials obtained by Oile party (the "Receiving
from the other party (the "Disclosing
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under the Engagement Letter: (i) thai have been
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Party 10 Ille Receiving Pany; or (iii) that due to
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lindeI' like circumstances would treat as
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Confidential lnfoflnalion does not include
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Receiving Party al the time of disclosure by the
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through no wrongful act of the Receiving Party;
(iii) is independently developed by the Receiving
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federal corporate income tax strategy offered or
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described in Paragraph 13(e) below or (v) is
received by the Receiving Party from a third parly
without restriction and without a hreach of all
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(b) Receiving Party the
Party all Confidential lll!()mlation of the Di,closing
Page 3
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event less than reasonable care. exceplto the extent
that applicable law or professional standards
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entered in the matter.
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Revenue Code sections 6011. Gill, 6112 or the
regulations thereunder, or under any similar or
analogous provisions of the laws of a state or other
jurisdiction. Client (and each employee,
representative, Of other agent of Client) may
disclose to any and all persons. without limitation
of any kind. the tax treatment and tax structure of
any transaction within the scope of this
engagemem that reduces or defers federal tax and
all materials of any kind (including opinions and
otller tax analyses) that are provided 10 Client
relating to such lax treatment and tax structure. If a
state or adopts provisions that are
similar or analogollS to those in IRC sections 60 II,
6111, or 6112 or the regulations thereunder, the
allthor;zar.ion disclose in the preceding sentence
also shall apply to any transaction within the scope
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KPMG LLP
Terms and Conditions
Services
of this engagement Iha! is subject to such
provisions of that state or other jurisdiction.
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II, 13. 15. 16, 17,18 and 19(a) nereofsnall survIve the
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firm as may be required to complete this engagement.
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provisions thereof
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services provided thereunder. or any other services
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any court of competent jurisdiction.
Page
(b) Notwithstanding the agreement to such procedures,
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or acceptance of Delivcrables resulting from this
engagement will not constitute a basis for Client.s
assessment or evaluation of internal control over
financial reporting and disclosure comrols and
or its compliancc with its principal
certification requirements under Section
302 of the Act 01'2002 (thc "Act").
TIlis engagement shail not be conSlmed to
Client's ullder Section 404 the
Act each allnual report filed under
Section 13(a) or 15(d) of the Securities Exchange
Act of 1934 to contain an internal control report
from management.
(b) KPMG may communicate with Client by electronic
mail or otherwise transmit documents in electronic
fonD during the course of this engagement. Client
accepts the inherent riSKS of tllt:sc forms of
communication (induding the security riSKS of
interception of or unauthorized access tu such
communicatiolls, the risks of eorruplloll of such
communications aoo the risks of viruses or other
harmful devices) and agrees that it may rely only
upon a final hardcopy version of a document or
other communication that KPMG transmits 10
Client.
(c) For engagements performed ill California or where
the services provided by KPMG fal! under the
jurisdiction of California law, rule or regulation.
Client ad.!lOwledges that certain of KPMG's
personnel that have an ownership interest m the
partnership and who may provide services in
connection with this engagemcnt may not be
!iGcl1scd as certified public accountants under the
laws of any of the various states.
20. EBtil'l~ Agreemellt. These tenns, and the Engagement
Leiter including Exhibits hereto and thereto, constitute
the entire agreement between KPMG and Clicnt with
respect to this engagement and supersede all other oral
and written representation, understandings or
agrecrnems relating to this engagement.
Revised
Exhibit !\
Oispute Resolution Procedures
The following procedures are the sole methodologies to be used to resolve any controversy Dr claim ("dispute"). If any of these
provisions are determined to be invalid or unenforceable. the remaming provisions shaH remain in effect and binding 011 the
partics to the fultest extent permitted law.
Mediation
Any party may request mediation of a dispute by providing a written Request for Mediation to the other pany or panies The
mediat(Jr, as well as the time and place of the mediation, shall be selected by agreement of the parties. Abscnt any other
agreement to the contrary. the parties agree tu proceed in mediation using the CPR Mediation Procedures (Effective April I,
1998), with the exception of paragraph 2 which shall not tu any mediation conducted pursuant to this agreement. As
provided in the CPR Mediation Procedures, the mediatiun be conducted as specified by the mediator and as agreed upon by
the parties. The parties agree to discuss their dillercllccs in good faith and to attempt, with facilitation by the mediatoc. to reach
a consensual resolution of the dispute. The mediation shall be treated a.s a settlemel1l discussion and shall he confidential The
mediator may not testify for party in any later proceeding related to the dispute. No recording or transcript shall be made of
the mediation proceeding. party shall bear its own costs in the meclialiull. Absent an agreement 10 the contrary, the fees
and expenses ofthe mediator shall be shared equally by the parties.
A rbitra#on
Arbitration shall be used to settle the following disputes: (I) any dispute oot resolved by mediation 90 days aner the issuance by
one of the partics of II written Request for Mediation (or. if the parties have agreed to enter or extend the mediation, for such
longer pcrioo as the panies may agree) or (2) any dispute in which a party declares, more than 30 days after receipt of a written
Request for Mediation. mcdiatiQn to be inappropriate to resolve that dispute and initiates a Request for Arbitration. Once
commenced, the arbitration will be conducted either (I) in accordance with the procedures in this document and tile Rules for
NOll-Administered Arbitration of the CPR Institute for Dispute Resolution ("CPR Arbitration Rules") as in effect on the date of
the engagement letler or contract between the parties, or (2) in aceordance with other rules and procedures as the parties may
by mutual agreement In the event of a conflict, the provisions of this docllment and the CPR Arbitration Rules will
contm I.
The arbitratioll will be conducted before a panel of three arbitrators, two of whom may be designated by the parties llsing either
the CPR Panels of Distinguished Neutrals or the Arbitration Rosters maintained by any JAMS Office in the United States. If the
panics lin: unable to agree on the composition of the arbitration panel. the parties shall follow the screened selection process
provided in Section B, Rules 5, 6, 7, and 8 of the CPR Arbitration Rules. Any issue concerning the extent to which any dispute
is subject to arbitration. or any dispute concerning the applicability, imerpreration, or enforceability of these procedures,
including any contention that all or part of these procedures are invalid or unenforceable, shall bc governed by the Fedcral
Arbitration Act and R'SOlved by the arbitrators. No potential arbitratOl' shall be appoillled unless he or she has agreed in writing
to abide and be bound by thesc procedures.
The arbitration panel shall issue iL~ final award in wnting. The panel shall have no power to award 110n..monetary or equitable
relief of any sort. Damages that are inconsistent with allY applicable agreement between the parties, that are ptmitive ill nature,
or that are not measured by the prevailing party's actual damages, shall be unavailable in arbitration or allY other forum, In no
event, even if any other portion of these provisions is held to be invalid Of unenforceable, shall the arbitration panel have power
to make an award or impose a remedy that could not be made or Imposed by a court deciding the malleI' in the same Jurisdiction.
Discovery shall be permitted in connection with the arbitration only to the extent, allY, expressly authorized by the arbitration
pane/upon a showing of substantial need by the party seeking discovery.
All aspects of the arbitration shall be treated as confidential. The parties and thc arbiuation panel may disclose lhe existence,
content or results of the arbitratiun only as provided if! the CPR Arbitration Rules. Before making allY sllch disclosure, a party
shall givc written notice to all other parties and shan afford such parties a reasonable opportwlIty to protl-'Ct their illterests.
The award reached as result of the arbitration will bc binding on the patties.
sought in any cOUlt having jurisdiction.
conflrmatiun of the arbitration award
be
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Revised