FY Ended 1979 & 1980A G R E E M E N T
Between
MONROE COUNTY
and
DELOITTE HASKINS & SELLS
PROVIDING FOR
AN AUDIT
OF COUNTY RECORDS
FOR FISCAL YEARS ENDED
SEPTEMBER 30. 1979 and 1980
A G R E E M E N T
Between
MONROE COUNTY
and
DELOITTE HASKINS & SELLS
PROVIDING FOR
AN AUDIT
OF COUNTY RECORDS
FOR FISCAL YEARS ENDED
SEPTEMBER 30, 1979 AND 1980
KNOW ALL MEN BY THESE PRESENTS: That MONROE COUNTY, a Body
Corporate and Politic, and a Political Subdivision of the State of
Florida, hereinafter referred to simply as COUNTY, through its Board
of County Commissioners, which term shall include their successors
and assigns,
AND
DELOITTE HASKINS & SELLS, Certified Public Accountants,
(a partnership of the State of Florida), having its principal place
of business at Suite 2000, One Southeast Third Avenue, Miami,
Florida, and doing business or authorized to do business in the
State of Florida, hereinafter referred to simply as AUDITOR.
W I T N E S S E T H, that, for and in consideration of the mutual
terms and conditions, promises, covenants and payments hereinafter
set forth, COUNTY and AUDITOR hereby agree as follows:
ARTICLE 1
PREAMBLE
In order to establish the background, context and frame of reference
for this Agreement and to manifest the objectives and intentions of
the respective parties herein, the following statements,
representations and explanations shall be accepted as predicates for
the undertakings and commitments included within the provisions
which follow and may be relied upon by the parties' essential
elements of the mutual considerations upon which this Agreement is
based.
1.1 Section 11.45 of the Florida Statutes and Section 10.800 of
the rules of the Auditor- General -of the State of Florida,
which are incorporated herein by reference, require that the
COUNTY shall provide annually for a financial audit of the
accounts and finances of the COUNTY.
1.2 Monroe County, pursuant to Florida Statute 11.45 when hiring
consultants, undertook a selection and negotiation process as
required by Florida Statute in seeking a firm to perform the
required audit.
1.2.1 The Audit Selection Committee to which this
responsibility was delegated selected three (3)
- qualified firms and made its recommendation to
the,Board of County Commissioners of March 19,
1980.
1.2.2 On March 19, 1980, the Board of County Commissioners
voted to hire the firm of Deloitte Haskins & Sells
to perform the Financial Audit as required by Florida
Statute 11.45 and Section 10.800 of the .Rules of the
Auditor General of the State of Florida, provided
that the firm could agree upon the terms of a contract
to be prepared by the Monroe County Attorney's Office.
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ARTICLE 2
DEFINITIONS
2.1 COUNTY
Monroe County, a body politic and a political subdivision of
the State of Florida.
2.2 AUDITOR
Deloitte Haskins & Sells, Certified Public Accountants.
2.3 FINANCIAL AUDIT
An examination of the financial statements in order to express an
opinion of the fairness with which they present financial
position, results of operations, and. changes in financial
position in conformity with generally accepted government
accounting principles and an examination to determine whether
operations are properly- conducted in accordance with legal and
regulatory requirements.
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2.4 FINANCIAL AUDIT REPORT REQUIRED BY STATUTES
The financial audit report, as required by F.S. 11.45 and
Section 10.800 of the Rules of the Auditor General, shall
consist of the following:
2.4.1 AUDITOR'S REPORT ON EXAMINATION OF FINANCIAL STATEMENTS
The report prepared by an auditor covering the audit
or investigation made by him. The report shall
include but not be limited to:
a.) a statement of the scope of the audit;
b.) explanatory comments (if any) concerning
• ,exceptions by the auditor as to application of
either generally accepted auditing standards or
generally accepted accounting principles or the
consistency of application of such principles;
c.) the Auditor shall express an unqualified opinion
on the financial statements of all funds. If
unable to express an unqualified opinion, the
Auditor should state the reasons for qualification
or disclaimer of opinion.
2.4.2 FINANCIAL STATEMENTS
A balance sheet, statement of revenues and
expenditures, or other statements of presentation of
financial data, including accompanying notes, derived
from the accounting records presented in conformity
with the fund and/or account group classifications as
required for compliance with Section 10.800 of the
Rules of the Auditor General.
2.4.3 AUDITOR'S LETTER OF COMMENTS AND RECOMMENDATIONS
A letter to the COUNTY containing various comments and
recommendations by the AUDITOR based upon a review of
the COUNTY'S system of internal accounting and
operating controls and other findings. Similar
letters shall be submitted to each of the County
Agencies, other than the Monroe County Sheriff and
Monroe County Tax Collector which are audited by
others for the year ended September 30, 1980)
pertaining to their individual responsibilities.
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2.S AUDITING SERVICES
The services related to performing a financial audit as
defined in Article 2.3. Auditing services also include
similar examination and/or review procedures that may be
requested by the Board of County Commissioners as extra work
which would involve exclusively the use of the AUDITOR'S
auditing staff. Such extra work may only be authorized by
written approval of the Board of County Commissioners.
ARTICLE 3
FINANCIAL AUDIT SCHEDULE
3.1 FISCAL YEAR ENDING SEPTEMBER 30, 1980
The Financial Audit for the fiscal year ended September 30,
1979 shall begin on or before April 14, 1980 and be completed
and final report as defined in Article 2.4 be submitted on or
before September 19, 1980.
3.2 FISCAL YEAR ENDING SEPTEMBER 30, 1980
The Financial Audit for thefiscal year ended September 30, 1980
shall be completed and final report as defined in Article 2.4
be submitted.on or before April 15., 1981.
3.3 RELIANCE ON OTHER AUDITORS
COUNTY and AUDITORS specifically acknowledge that separate
audit reports are to be completed for the fiscal year ended
September 30, 1979 by the accounting firm of Parks, Bishop and
Hutchings, CPA's, for the Monroe County Tax Collector and
Monroe County Sheriff.
If such separate reports have not been completed and submitted
to the AUDITOR to allow for their inclusion and submittal with
the final financial audit reports as set forth in Article 3.1,
then COUNTY and AUDITOR acknowledge that such failure to
complete the said separate reports shall not be the
responsibility of the parties hereto. COUNTY and AUDITOR
further acknowledge that the dates set forth in Article 3.1 to
complete the final financial audit report are predicated upon
receipt of said separate reports no later than July 1S, 1980.
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If AUDITOR has not received the separate reports by July 15,
1980, AUDITOR shall immediately advise the COUNTY in writing
of same. If the separate reports are not received in time
then the AUDITOR shall submit the final financial audit report,
less said separate reports, the dates set forth in Article
3.1 and such presentation shall be deemed to fully comply with
all other terms of this contract.
ARTT('T P A
SCOPE OF AUDIT
4.1 FUNDS AND ACCOUNT GROUPS
The financial statements shall be prepared in conformance with
the primary •funds and accounts groups as described in GAAFR, as
amended by Statement 1 relating thereto, with supplemental
shcedules as required for compliance with Section 10.800 of
the Rules of the Auditor General of the State of Florida.
Funds may be combined to the extent permitted by the Industry
Audit Guide and by Statement 1.
4.1.1 PRIMARY REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS
The following funds and accounts groups are used by
COUNTY and in conformity with generally °accepted
principles of governmental accounting, are those into
which the general purpose financial statements are to
be classified and grouped for financial reporting and
audit opinion purposes:
General fund
Special revenue funds
Debt service funds
Enterprise funds
Intergovernmental service funds
Special assessment funds
General fixed asset group of accounts
General long-term debt group of accounts
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4.1.2 SUPPLEMENTAL FINANCIAL REPRESENTATIONS
Supplemental to the above funds and account groups are
the financial representations of the following
entities and/or Constitutional Officers:
' Monroe County Board of County Commissioners
Supervisor of Elections of Monroe County
Monroe County Clerk of the Circuit Court
Clerk ex-officio of the Board of County
Commissioners
Monroe'County Tax Collector
Monroe County Property Appraiser
Monroe County Sheriff
Financial representations relating to each of the
above entities or Constitutional Officers shall be
included as supplemental data to the general purpose
financial statements and shall be reported on
accordingly.
4.2 SPECIAL REPORTS :i.
Special reports shall be prepared as reuqired by, and in
accordance with, bond indentures existing at the date of this
contract as follows:
a) Federal Revenue Sharing
b) Card Sound Bridge Revenue Bond Issue
c) 1965 Certificates of Indebtedness
4.3 MANAGEMENT LETTER
4.3.1 A tentative Management letter and preliminary
financial audit report shall be delivered to the
County and each County agency no later than August 15,
1980 for fiscal year ending September 30, 1979 and no
later than March 15, 1981 for fiscal year ending
September 30, 1980.
4.3.2 A final financial audit report shall be submitted in
accordance with Article 3 hereof.
4.4 COMPLIANCE LETTER
In addition to the Mangement letter, and in the same manner,
the AUDITOR shall prepare and submit to the Board of County
Commissioners of Monroe County a letter regarding the County's
compliance with the terms of its various bond issues existing
at the date of this contract.
4.5 AVAILABILITY OF RECORDS
It is contemplated that all records subject to audit for the
year ended September 30, 1979 will be available for AUDIT
examination beginning April 15,.1980.
It is further contemplated that records relating to the audit
for the year ending.September 30, 1980 will be available no
later than January 1, 1981.
4.6 AUDIT STANDARDS
Each audit shall be done in conformity with generally accepted
auditing standards as promulgated through the American
Institute of Certified Public Accountants (AICPA) Industry
Audit Guide, Audits for State and Local Governmental Units,
AICPA standards and procedures, and, exclu ing the review of
economy and efficiency of operations and program results,
standards and procedures set forth in the publication
Standards for Audit of Governmental Organizations, Programs,
Activities and Functions, Comptroller General of thee Unite—ic
States. Requirements of Federal and State agreements and
statutory audit reuirement will be conformed with as each may
be applicable.
4.7 COOPERATION WITH AUDITOR GENERAL AND CONSULTING FIRMS
Where applicable, Deloitte Haskins & Sells, as the County's
principal auditors shall coordinate their work and cooperate
with the Auditor General of the State of Florida, and with any
and all consulting firms under contract to Monroe County and
other County Agencies.
4.7.1 The Monroe County Tax Collector and the Monroe County
Sheriff, each Constitutional Officers under Article
VIII Section l(d) of the Florida Constitution, have
previously contracted with the accounting firm of
Parks, Bishop and Hutchings, CPA's for financial
audits for the year ended September 30, 1979.
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4.8 IRREGULARITIES
Should irregularities or other unforeseeable conditions be
encountered which might necessitate the 'extension of the
auditing work beyond the scope of normal auditing procedures,
the AUDITOR agrees to, advise the County in writing of the
circumstances and to request an increase in the total fees be
made available before significant additional costs are
incurred. Any request for additional time or additional fees
shall be in writing and shall contain a detailed explanation
of the unforeseen conditions or irregularities, and why the
additional fees are necessary. Whether a time extension or
additional fees are granted to AUDITOR is at the sole
discretion of COUNTY.
4.9 ILLEGAL ACTS
The AUDITOR is aware that illegal acts may be discovered
during the audit. However, it is recognized that the audit
cannot be relied upon to assure the discovery of illegal acts,
nor is the audit primarily or specifically designed to
disclose defalcations and other illegal acts, though their
discovery may result. The AUDITOR agrees to immediately
disclose the discovery of any and all illegal acts to the
Board of County Commissioners.
4.10 STANDARD OF CARE
In the performance
and shall make the
accepted auditing
of the audit, the AUDITOR shall be bound by
examination in accordance with generally
standards.
ARTT CT,F. 5
EXTRA WORK
5.1 EXTRA WORK TO BE SPECIFICALLY REQUESTED BY COUNTY
The AUDITOR, upon receipt of a written request from the
COUNTY, shall perform such additonal auditing services as
requested by the County. This may include a review of the
efficiency and economy of operations, systems of internal
control, operating and management procedures and effectiveness
in achieving -program results.
The purchase of specialized services or extra audit services
required by special federal or state reporting requirements
shall require submission of a written proposal by the AUDITOR
for agreement and approval by COUNTY. Such extra work shall
be covered by a separate contract. The cost of such
specialized services shall be computed and billed in
accordance with the provisions of Article 7 of this Agreement.
ARTICLE 6
WORK PAPERS
6.1 For a period of three (3) years after completion of any work
provided for herein, the AUDITORS shall make its work papers,
records and other evidence and documents relating to such work
available for inspection and copying by the COUNTY and by the
auditors' retained by the COUNTY who succeed Deloitte Haskins
& Sells to the extent necessary to support the balance set
forth in the most recent financial statements of the COUNTY on
which the AUDITOR has reported. All public records under
Florida Law shall be made.available to the COUNTY, successor
C.P.A. Firms, and to the general.public. Any copying done
shall be at the expense of the copying party., Other requests
for access to such documents will be considered by the
AUDITOR, but the AUDITOR has no obligation.to grant them.
ARTICLE 7
COMPENSATION
7.1 MAXIMUM FEES FOR FISCAL YEARS ENDED SEPTEMBER 30, 1979 AND 1980
AUDITOR has exercised its best efforts in attempting to
estimate the time requirements and based upon that estimate
has established a fee for the fiscal year ended September 30,
1979, based on its applicable hourly rates, which shall not
exceed Twenty Thousand Dollars ($20,000) plus reimbursement of
out-of-pocket expenses not to exceed Three Thousand Dollars
($3,000). Likewise, the fee for the fiscal year ending
September 30, 1980 shall not exceed Twenty Seven Thousand Five
Hundred Dollars ($27,500) plus reimbursement of out-of-pocket
expenses not to exceed Three Thousand Dollars ($3,000).
7.2 HOURLY FEES
The following schedule of hourly fees shall apply
to
all
accounting and auditing services or for extra
work
done
for
the term of this contract by the AUDITOR,
whether
under
this
Agreement or for extra work requested by
'
the Board of
County
Commissioners.
Partner ...........................
Manager.
$150.00
per
hour
........................
Supervisor.
100.00
per
hour
.................
Senior Accountant
75.00
per
hour
.................
Assistant Accountant ..............
60.00
35.00
per
hour
hour
Non-professional
per
(Report reporduction, etc.).....
18.00
per
hour
7.3 BILLING
Each four weeks AUDITOR shall submit a billing for all fees
and expenses occurring during the preceding four weeks
attributable to the audit against this contract. These billings
shall reflect the total horus of work performed pursuant to
the staff categories listed in Article 7.2.
Such billings shall also describe any reimbursable expenses
and the extent to which such expenses are reimbursable under
this contract.
The statement shall show a summary of fees and expenses with
accrual of the total and credits for portions paid
previously. Each statement shall show the proportion of the
guaranteed maximum payment that has been expended through
previous billings. .
7.4 PAYMENT
COUNTY agrees to promptly process each monthly statement
received from AUDITOR and it shall remit billings within
thirty (30) days of receipt of AUDITORS' monthly statement
except the final $33,000.00 due shall not be paid each year
until the Final Audit has been completed.
7.5 RECORD KEEPING
AUDITOR agrees to keep such records and. accounts as may be
necessary in order to record complete and correct entries as
to personnel hours charged and any expenses for which AUDITOR
expects to be reimbursed. Such books and records will be
available at all reasonable times for examination and audit
by COUNTY.
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7.6 NO .ADDITIONAL COMPENSATION FOR EXPENSES.
Except as described in Article 7.1 or unless incurred at the
specific request of the COUNTY, AUDITOR shall not be
reimbursed for any travel, per diem, photocopying, telephone
bills, or related expenses.
ARTICLE 8
GENERAL
8.1 NO ASSIGNMENT BY AUDITOR
This Agreement, or any interest herein, shall not be assigned,
transferred or otherwise encumbered under any circumstances
by AUDITOR. However, the Agreement shall run to the COUNTY
and to any of its successors.
8.2 AUDITOR SHALL BE FAMILIAR WITH ALL APPLICABLE LAWS
The AUDITOR shall familiarize themselves with and comply with
the provisions of any and all Federal, State and County
Orders, Statutes, Ordinances, Charter, Bond Covenants,
Administrative Code, Rules and Regulations, which may pertain
to the work required under this Agreement, including
specifically those which pertain to "Conflicts of Interest"
and "Employment Discrimination".
8.3 TERMINATION
It is understood and agreed that this Agreement may be termin-
ated by the COUNTY for the Fiscal Year 1979-80 only by the
COUNTY giving written notice of said termination by October 1,
1980.
8.4 REPRESENTATIVES OF COUNTY
The COUNTY and each County Agency shall designate a
representative through whom all communications pertaining to
the day-to-day conduct of the audit shall be addressed and
shall notify AUDITORS accordingly. Such individuals may, from
time to time, designate one or more of his staff to perform
all or part of the functions required hereunder and shall so
advise the AUDITOR.
8.5 REPRESENTATIVES OF AUDITOR
The AUDITOR shall inform the County and other County Agencies
of the name of the representative of the AUDITOR to whom
matters involving the conduct of the audit shall be addressed.
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8.6 INCORPORATION OF ALL PRIOR AGREEMENTS
This document incorporates and includes all prior
negotiations, correspondence, conversations, agreements, or
understandings applicable to the matters contained herein and
the parties agree that there are no commitments, agreements,
or understandings concerning the subject matter of this
Agreement that are not contained in this document.
Accordingly, it is agreed that no deviation from the terms
hereof shall be predicated upon any prior representations or
agreements whether oral or written.
It is further agreed that no modification, amendment or
alteration in the -terms or conditions contained herein shall
be effectkve unless contained in a written document executed
with the same formality and of equal dignity herewith.
8.7 REPORT COPIES
AUDITOR shall.provide twenty (20) copies of the final
financial report to COUNTY.
8.8 EXECUTION
This document shall be executed in ten (10) counterparts, each
of which shall be deemed an original.
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IN WITNESS WHEREOF, the parties hereto have made and executed this
Agreement on the respective dates under each signature: MONROE
COUNTY through its BOARD OF COUNTY COMMISSIONERS, signing by and
through its Chairman, authorized to execute same by Board action on
the day of , 19 , and DELOITTE HASKINS & SELLS
signing by and through its partner in charge duly authorized to
execute same.
ATTEST:
Cleric df/ the Boar of —County
Commissioners of Monroe County,
Florida
WITNESS:
r
COUNTY
AUDITOR
MONROE COUNTY, through its
BOARD OF C iTY C ISSIONERS
�r
BY
DON SCHLOEai
day of 19�
This docume t prepared
for Monroe ounty, Florida
by MICHAEL H. CATES,
Legal Advisor
507 Whitehead Street
Key West, Florida 33040
(305) 294-4641
B y
'Michael H. Cates
Legal Advisor
DELOITTE HASKINS & SELLS
3 d a y of %7u A.*e— , 19 to
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