FY2009 11/18/2009 AgreementDANNYL. KOLHAGE
CLERK OF THE CIRCUIT COURT
DATE: December 4, 2009
TO: Tina Boan, Sr. Budget Director
ATTN. Penny Kipp, Sr. Bud et Analyst
FROM: Pamela G. Han ck, .C.
At the November 18, 2009, Board of County Commissioners meeting the Board granted
approval and authorized execution of a Contract between Monroe County and KPMG to update
the Fiscal Year 2009 Full Cost Allocation Plan and the OMB A-87 Cost Allocation Plan.
Enclosed is a duplicate original of the above -mentioned for your handling. Should you
have any questions, please feel free to contact our office.
cc: County Attorney
Finance
File ✓
L/I (_PM L 11
October :Z9, 2009
Ms. Tina Boan
Monroe County Government
Budget Director
1100 S imonton Street
Suite 2-213
Key West, FL 33040
Dear Ms„ Boan:
KPMG LLP
Suite 1600
111 North Orange Avenue
PO Box 3031
Orlando, FL 32802
Telephone 407 423 3426
Fax 407 648 8557
Internet www.us.kpmg.com
OCT 3 0 2009
KPMG LLP (KPMG) is pleased to submit this engagement letter to Monroe County, Florida
(County) to provide professional advisory services. This letter confirms our understanding of the
services desired by the County. KPMG is proposing to assist the County utilizing the State
of Florida Management Consulting Services Contract # 973-001-06-1. The contract
terms and conditions used in this document are managed by the Florida Department of
Management Services and are located in the State Contracts, Agreements and Price Lists.
The Management Consulting Service Contract # 973-001-06-1 is incorporated herein by
reference and maintained in the contract manager's file.
The County is requesting assistance with the preparation of a Full Cost Allocation Plan and a 2
CFR Part 225 (formerly OMB Circular A-87) Plan based on actual expenditures for the fiscal
year ended June 30, 2008. KPMG will assist the County with the following:
• The first plan will be a "full -cost" plan for use in allocating indirect costs to enterprise
fiends, internal service funds, and certain special revenue funds.
• The second plan will be prepared in accordance with the Federal Office of Management
and Budget Circular A-87, Cost Principles for State and Local Governments (relocated to
Title 2 in the Code of Federal Regulations, Subtitle A, Chapter II, part 225) and may be
used in allocating indirect costs to the County's federal grant programs. The County is
responsible for submitting its cost allocation plan for negotiation and approval if
requested by its federal cognizant agency. Please note, current OMB Circular A-87
regulations do not require the County to submit its cost allocation plan for negotiation
and approval unless specifically requested by its federal cognizant agency.
By accepting this engagement letter, County management accepts responsibility for the
substantive outcomes of this engagement and, therefore, has a responsibility to be in a position in
fact and appearance to make an informed judgment on the results of this engagement and that the
County will comply with the following:
KPMG LLP, a U.S. limited liability partnership, is the U.S.
member firm of KPMG International, a Swiss cooperative.
Letter to Monroe County, Florida
October 29, 2009
Page 2
• Designate a qualified management -level individual to be responsible and accountable for
overseeing the engagement.
• Establish and monitor the performance of the engagement to ensure that it meets
management's objectives.
• Make any decisions that involve management functions related to the engagement and
accept full responsibility for such decisions.
• Evaluate the adequacy of the services performed and any findings that result.
KPMG Project Team
Mr. David Dennis, a partner in KPMG's Orlando, Florida office, will serve as the engagement
partner. Mr. David Jahosky, a senior manager in KPMG's Orlando office, will serve as the
engagement manager and will serve as the KPMG primary point of contact for this engagement.
Ms. Heidi Powell, a senior associate with KPMG's Government practice, will serve as the lead
staff and will supervise other project staff during the course of the engagement.
Engagement Objectives
The objective of this engagement is to assist the County in developing the indirect cost allocation
plan (CAP). To meet this objective, KPMG proposes to assist the County with the preparation of
the CAPS based on County -provided data. The plans will be prepared based on statistical data
and expenditures incurred for the fiscal year ended September 30, 2009.
Work Plan Approach
KPMG its prepared to initiate the project within two weeks from the receipt of the signed
engagement letter or executed contract. We estimate that an elapsed calendar time of 90 calendar
days from the date of commencement would be required to assist you in the development of the
final reports. This time frame is dependent upon the timeliness of requested information
furnished by the County. The County will be responsible for the collection of all statistical
information used as allocation bases, as well as all decisions regarding allocation statistics, cost
pools, and receiving departments used in the cost allocation plan. KPMG's role will be to advise
the County and complete the indirect cost plans after the County has made key decisions.
CPM _
Letter to Monroe County, Florida
October 29, 2009
Page 3
To achieve the objective outlined above, the project team will undertake a four -phased process as
summarized in the table below.
Phase
Key Tasks
Work Products
1. Project Initiation
Meet with County personnel to confirm
the project objectives and timeline.
List of information needs
Project Charter
Communications Plan
Develop a list of information needs.
Conduct a kick-off meeting with all
relevant stakeholders.
Risk Register
Develop an understanding of the
County's current indirect cost recovery
2. Analysis of the County's
strategy.
Identify indirect cost centers and
Current Indirect Cost
Approach
classify services performed.
Interview County staff to understand
the impact of the planned changes.
Monthly Status Reports to the
County
Work with County to identify
expenditures by cost pool and services
3. Data Collection and
Analysis
performed.
Identify allowable and unallowable
costs.
Work with County staff to identify
allocation bases that are representative
of the costs being allocated.
Where applicable, prepare adjustments
to distribute direct and indirect costs.
Full Cost Allocation Plan
4. Issue the County's Cost
Issue the draft report to the County.
Allocation Plans
OMB Circular A-87 Cost
After the County's review and written
feedback on draft report, KPMG will
Allocation Plan
issue the final reports.
Letter to Monroe County, Florida
October 29, 2009
Page 4
KPMG has developed a project timeline that identifies our phased sequence of tasks that
coincide with the County's time frame. The following chart depicts a view of project timing by
phase.
PROJECT TIMELINE BY PHASE
Phase
Dec-09
Jan-10
Feb-10 Mar-10
1. Project Initiation*
2. Analysis of County's Current Indirect Cost Approach
3. Data Collection and Analysis
4. Issue County's Cost Allocation Plans
*As part Of Phase I, KPMG will work with the County's staff to finalize the timeline.
Project :Budget
Our fees, for professional services include professional staffing, administrative support, report
production, and travel costs. Total fees will not exceed $29,500. We will invoice the County
monthly and invoices are due upon receipt. If unforeseen circumstances cause us to believe that
our professional fees will exceed the estimate provided above, we will discuss this situation with
you and agree upon an appropriate course of action.
Other Considerations
Our analysis will be prepared under the Consulting Standards issued by the American Institute of
Certified. Public Accountants (AICPA) and does not constitute an examination, compilation or
agreed upon procedures in accordance with the standards established by the AICPA. This
analysis will be prepared based on information received from the County. No independent
verification of this information will be made by KPMG and we assume no responsibility for the
accuracy or reliability of the information provided to us. The analysis will be intended solely for
the use of the County and may not be provided to any third party without the written consent of
KPMG and should not be relied upon for any other purposes.
It has been our experience that the County's participation is necessary for this type of
engagement to be successful. It is imperative that we receive timely cooperation regarding
requested data for effective use of KPMG and County resources. KPMG requests that
information provided by the County to be summarized and subtotaled by Department/Division
(or equivalent) for the General Fund and by Fund for non General Fund activities. Information
requested by KPMG should be provided in both electronic and hard copy formats.
Letter to Monroe County, Florida
October 29, 2009
Page 5
Our assumptions for the engagement are as follows:
• The County will provide data for central service departments at division / department /
fund level (or their equivalent) summaries that provide a reasonable basis for allocating
each function's activity to the benefiting department/division.
• KPMG will issue a draft report to the County by February 28, 2010. Should KPMG not
receive the requested information from the County by February 15, 2010, we will issue
the draft reports within 30 days of receipt of financial, statistical and allocation data.
• The County is requested to review the draft reports and provide comments to KPMG
within 30 days of receiving the draft report. KPMG will issue the final reports within 15
days of receiving the County's comments. Should the County not provide written
comments or request an extension for the review of the draft reports, KPMG will
consider the draft reports as finalized and issue the reports in final form.
• The County will provide relevant operational, technical, and background information as
required by the engagement team.
• The County will provide assistance to help KPMG achieve the successful completion of
the engagement. Such assistance will include:
■ Assistance in gaining timely access to documentation, systems, and key personnel
■ Timely feedback at key decision points
■ Active participation to facilitate the timely resolution of project -related issues.
• The County will provide a common office space adequate for up to 2 KPMG personnel.
• The County will provide meeting space as needed to conduct interviews and work
sessions throughout the project.
Letter to Monroe County, Florida
October 29, 2009
Page 6
We look forward to working with you and your staff in the performance of these services, and
would be pleased to discuss this letter with you at any time. For your convenience in confirming
these arrangements, we enclosed a copy of this letter. Please sign it and return it to me.
Very truly yours,
KPMG L.LP
A 70<
4
David L. Dennis
Partner
State and Local Government Advisory Sector Leader
tOONROE COUNTY ATTORNEY
AC PTED BY T COUNTY:
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Amendments - Amendment 9 (2 June 2009) /Amendments /Management Consulting Ser... Page 1 of 6
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Amendment 9 (2 June 2009)
June 2, 2009
MEMORANDUM NO.: (973-001-06-01) -9
TO: Department Addressed /User Agency
FROM: Director,, State Purchasing
SUBJECT: Contract No. 973-001-06-01
Amendment; 9
TITLE: Management Consulting Services
The above mentioned Contract is renewed for three (3) years effective May 31,
2009 until May 31, 2012 with the following contractors:
21st Century Research & Evaluations, Inc.
Accenture, LLP
Achieveglobal
ADG Business and Governmental Consultants (A)
Advanced Systems Design, Inc. (ASD)
Advent Group Inc.
American Government Services Corporation
Ariel Business Group, Inc.
Avineon, Inc:.
BCP International, Ltd.
Brandt Information Services, Inc.
Brown and Caldwell
Burger, Carroll, & Associates, Inc.
CedarCrestone, Inc.
CMA Enterprise Inc.
Crawford Marketing & Consulting Inc dba CMC & Associates
Communication Applications, Inc.
Community Synergy Group, Inc.
Community Trust Corporation
Dauntless Consulting Group
Deloitte Consulting
Disasters, Strategies and Ideas Group, LLC
Donald J. Craig, CPA
http://dms.myflorida.comlbusiness_operationslstate_purchasinglvendor_informationlstate... 10/26/2009
Amendments - Amendment 9 (2 June 2009) /Amendments /Management Consulting Ser... Page 2 of 6
DWB & Associates
Dye Management Group, Inc.
Electronic Training Solutions, Inc.
Enterprise Technology Partners
EMA, Inc.
EquaTerra Public Sector LLC
Evergreen Solutions, LLC
EW Bryant Associates LLC(M)
Faircloth Information Technology Systems, Inc.
First Data Government Solutions, Inc.
Fiscal Management Solutions, Inc.
FL IT Centers of Excellence
Focused Energy, LLC
Foley & Lardner LLP
Forefont Consulting LLC
FOX Systems, Inc.
General Physics Corporation
Harvey, Covington & Thomas, LLC
HDR Engineering, Inc
Heron Bay Group, Inc.
Horn by Zeller Associates
IBM Corporation
ICATT Consulting, Inc. (N )
Identity Theft Solutions Corporation
I. S. Consulting (B)
Information Engineering Services, Inc.
Information Systems of Florida, Inc. (I)
Integrated Computer Solutions
Jacobs Technology Inc
James Moore & Co PI
J RD & Associates Inc
Justice Research Center, Inc
KM R Consultants LLC
KLC u lti ng, Inc.
4MG LLP
erbert Consultants, Inc.
Law, Redd, Crona & Munroe, P.A. (A)
Levings & Associates, Inc.(I)
Lytmos Group, LLC
Mary Key & Associates, Inc. (M)
MAXIMUS, Inc.
Mercer Health & Benefits, LLC
MGT of America, Inc. (A)
Milliman, Inc;
Moten Tate, Inc.
http://dms.myfloi-ida.comlbusiness_operations/state_purchasinglvendor_informationlstate... 10/26/2009
Amendments -Amendment 9 (2 June 2009) /Amendments /Management Consulting Ser... Page 3 of 6
Northrop Grumman Information Technology, Inc
Critical Incident Solutions, LLC dba OGARA
Paul Consulting, Inc.
PKV Management Consulting, Inc. (A)
PMA Consultants, LLC
Program Planning Professionals (Pcubed)
Progressive Engineering &Construction, Inc.
Public Consulting Group Inc
Quality Management International
Rothenbach Research and Consulting, LLC
Science Applications International Corporation
Sharpton, Brunson & Company, P.A(H)
The IPL Group
The Management Edge, Inc
The North Highland Company (A)
Thomas Howell Ferguson P.A.
Village Architects Incorporated
Any questions or problems in delivery or service that may arise regarding this
contract should be directed to the Contract Administrator Holly Merrick at
holly.merrick@dms.myflorida.com or PH 850-488-7804.
Management Consulting Amendment 9-06.04.09.doc (35-50 kB)
10/26/2009
Management Consulting Services
• Price Sheets - Category 1
• Price Sheets - Category 2
• Price Sheets - Category 3
• Price Sheets - Category 4 & 5
• Price Sheets - Complete Pricing Spreadsheet
• Contras:tors - 21st Century Research & Evaluations, Inc
• Contras:tors - Accentu re LLP
• Contractors - Achieveglobal, Inc.
• Contractors - ADG Business And Governmental Consultants
• Contractors - Advanced Systems Design, Inc.
• Contractors - Advent Group Inc
• Contractors - American Government Services Corporation
• Contractors - Ariel Business Group, Inc.
• Contractors - Avineon, Inc.
• Contractors - BCP International Limited Corp
• Contractors - Brandt Information Services, Inc.
• Contractors - Brown and Caldwell
http://dms.myflclrida.comlbusiness_operationslstate_purchasinglvendor_informationIstate... 10/26/2009
Amendments - Amendment 9 (2 June 2009) /Amendments /Management Consulting Ser... Page 4 of 6
• Contractors -
Burger, Carroll, & Associates, Inc.
• Contractors - Ceda rCrestone, Inc.
• Contractors - CMA Enterprise Inc.
• Contractors - CMC & Associates
• Contractors - Communication Applications, Inc.
• Contractors - Community Synergy Group, Inc
• Contractors - Community Trust Corporation
• Contractors -
Dauntless Consulting Group
• Contractors -
Deloitte ConsultingLLP
• Contractors - Disasters, Strategies, and Ideas Group, LLC
• Contractors -
Donald James Craig, CPA
• Contractors -
DWB & Associates
• Contractors -
Dye Management Group, Inc.
• Contractors -
Electronic Training Solutions, Inc.
• Contractors -
EMA, Inc.
• Contractors -
Enterprise Technology Partners
• Contractors -
Ea aTerra Public Sector LLC
• Contractors -
Evergreen Solutions, LLC
• Contractors -
EW Bryant Associates
• Contractors -
Faircloth Information Technology Systems, Inc.
• Contractors -
First Data Government Solutions, Inc. (formerly GovConnect)
• Contractors -
Fiscal Management Solutions, Inc.
• Contractors -
FL IT Centers of Excellence
• Contractors - Focused Energy, LLC
• Contractors - Foley & La rd ner LLP
• Contractors - Forefront, LLC
• Contractors - FOX Systems, Inc.
• Contractors - General Physics Corporation
• Contractors - Harvey, Covington & Thomas, LLC
• Contractors - H DR Eng i neeri ngl Inc
• Contractors - Heron Bay Group, Inc.
• Contractors - Horn by Zeller Associates
• Contractors - IBM Corporation
• Contractors - ICATT Consulting, Inc
• Contractors - Identity Theft Solutions Corporation
• Contractors - I S Consulting (B)
• Contractors - Information Engineering Services, Inc.
• Contractors - Information Systems Of Florida
• Contractors - Integrated Computer Solutions
• Contractors - Jacobs Technology Inc
• Contractors - James Moore & Co PI
• Contractors - J RD & Associates Inc
• Contractors - Justice Research Center, Inc
• Contractors - KM R Consultants LLC
• Contractors - KLC Consulting,Inc.
hap:Hdms.myflorida.com/business_operations/state—Purchasing/vendor_information/state... 10/26/2009
Amendments -Amendment 9 (2 June 2009) /Amendments /Management Consulting Ser... Page 5 of 6
• Contractors -
KPMG LLP
• Contractors -
Lampl Herbert Consultants Inc.
• Contractors -
Law, Redd Crona & Munroe, Pa
• Contractors -
Levings & Associates, Inc.
• Contractors -
Lytmos Group, LLC
• Contractors -
Mary Key & Associates
• Contractors -
Maximus, Inc.
• Contractors -
Mercer Health & Benefits, LLC (Aj
• Contractors -
MGT of America Inc
• Contractors -
MillimanI Inc
• Contractors -
Moten Tate. Inc.
• Contractors, - Northrop Grumman Information Technology, Inc
• Contractors - O'Gara Training & Services LLC
• Contractors - Paul Consulting,Inc.
• Contractors - PKV Management Consulting, Inc. (A
• Contractors - PMA Consultant LLC (A�
• Contractors - Program Planning Professionals
• Contractors - Progressive Engineering & Construction, Inc.
• Contractors - Proiect Management Solutions Inc
• Contractors - Public Consulting Group Inc
• Contractors - Quality Management International
• Contractors - Rothen bach Research and Consulting, LLC
• Contractors - Science Applications International Corporation (SAIC)
• Contractors - Sha rpton, Brunson & Company, P.A.
• Contractors - The IPL Group
• Contractors - The Management Edge, Inc
• Contractors - The North Highland Company, Inc.
• Contractors - Thomas Howell Ferguson P.A.
• Contractors - Village Architects Incorporated
• Amendments
o Amendments -Amendment 9 (2 June 2009)
o Amendments -Amendment 8 (30
January 2009.E
o Amendments -Amendment 7 (02
December 081
o Amendments -Amendment 6 (6
October 2008�
o Amendments -Amendment 5 (29
July 07)
o Amendments -Amendment 4 (29
August 061
o Amendments -Amendment 3 (29
August 061
o Amendments -Amendment 1 (15
June 06)
o Amendments -Amendment 2 (15
June 06)
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Complete Contract - PDF
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Return to State Contracts, Agreements and Price Lists
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of Management Services -State of Florida
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