Loading...
08/19/1997 11lannp JL. Itolbage BRANCH OFFICE 3117 OVERSEAS HIGHWAY MARA mON, FLORIDA 33050 TEL. (305) 289-6027 FAX (305) 289-1745 CLERK OF TIlE CIRCUIT COURT MONROE COUNTY SOO WHITEHEAD STREET KEY WEST, FLORIDA 33040 TEL. (305) 292-3550 FAX (305) 295-3660 \ BRANCH OFFICE 88820 OVERSEAS HIGHWAY PLANTATION KEY, FLORIDA 3307Q TEL. (305) 852-7145 FAX (305) 852-7146 MEMORANDUM 1l): ~arva Green, C.P.A. Kemp & Green, P.A. Ruth Ann Jantzen, Deputy Clerk ~;. FROM: DATE: August 27,1997 At the August 19, 1997 County Commission Meeting, the Board granted approval and authorized execution of an Agreement between Monroe County and Kemp & Green, P.A.,Certified Public Accountants, providing for an audit of County Records commencing August 19, 1997 and to be for the next consecutive three years with an option of extending the contract one additional year. Enclosed please find a fully executed duplicate original of the above Contract for your flIes. If you have any questions concerning the above, please do not hesitate to contact this office. cc: County Attorney Finance County Administrator, w/o document File ";,::f:; :!: ' \C5 ~ c::, C ....... r- :r.. > r"1 ~":2~ ;e 0 '.';::s::: -< c::'5 -n C'. r- C) - r' , N ::0 PROVIDING FOR AN AUDIT OF COUNTY RECORDS COMMENGltiG:T, -' ::0 AUGUST 19, 1997 AND TO BE FOR THE NEXT CONSECUTIVE;' ~ ~ THREE YEARS WITH THE OPTION OF EXTENDING THE CONTRACT ONE ADDITIONA~YEA~ co 0 AGREEMENT Between MONROE COUNTY and KEMP & GREEN. P.A. CERTIFIED PUBLIC ACCOUNTANTS 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 KEMP & GREEN, P.A., Certified Public Accountants, having its principal place of business at #12 Luani Plaza, 1438 Kennedy Drive, Key West, Florida, 33040, P.O. Box 1529, Key West, Flori da 33041-1529, and doi ng busi ness or authorized to do business in the State of Florida, hereinafter referred to simply as AUDITOR. WITNESSETH, that, for and in cons i derat i on of the mutual terms and conditions, promises, covenants and payments hereinafter set forth, COUNTY and AUDITOR hereby agree as follows: ARTICLE I 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 consideration upon which this agreement is based. Ll 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 not incorporated herein by reference, require that the COUNTY shall provide annually for a financial audit of the accounts and finances of the COUNTY. ~ Monroe County. pursuant to Florida Statute 11.45 when hiring consultants. undertook a selection and negotiation process as required by Florida Statutes in seeking a firm to perform the required audit. ~ 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 on May 12. 1997. ~ On May 20. 1997. the Board of County Commissioners voted to hire the firm of Kemp & Green. P.A. 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. ARTICLE II DEFINITIONS ~ COUNTY -- Monroe County. a body politic and a political subdivision of the State of Florida. ~ AUDITOR -- Kemp & Green, P.A., Certified Public Accountants. ~ FINANCIAL AUDIT -- An examination of the financial statements in order to express an opi ni on of the fai rness wi th whi ch they present the financial position, results of operations, and cash flows 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. ~ FINANCIAL AUDIT REPORT REOUIRED 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: ~ AUDITORS' REPORT ON EXAMINATION OF FINANCIAL STATEMENTS -- The report prepared by an audi tor coveri ng the audi t or invest i gat ion made by him/her. 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: 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 group classifications as required for compliance with section 10.800 of the Auditor General. 2.....4....1 AUDITORS' LETTER OF COMMENTS AND RECOMMENDATIONS -- A letter to the COUNTY containing various comments and recommendations by the AUDITOR based upon 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 Constitutional Officers. ~ 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 required 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 I II FINANCIAL AUDIT SCHEDULE ~ FISCAL YEAR ENDING SEPTEMBER 30. 1997 .- The Financial Audit for the fi sca 1 year ended September 30, 1997, shall be completed and the fi na 1 draft of the Comprehensive Annual Financial Report as defined in Article 2.4 shall be completed on or before March 15, 1998. The final comprehensive annua 1 fi nanci a 1 statement must be submi tted on or before March 23, 1998. These dates will apply to the audits conducted for each succeeding year for the term of thi s contract, to whit: the fi scal years endi ng September 30, 1998, and September 30, 1999 with the option of extending the contract one additional year. ARTICLE IV SCOPE OF AUD IT U FUNDS AND ACCOUNT GROUPS -. The fi nanci a 1 statementS shall be prepared in conformance with the primary funds and account groups as prescri bed by GASB, wi th supp 1 ementa 1 schedul es as requi red for comp 1 i ance 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 Governmental Accounting Standards. 4.....L.l PRIMARY REPORT ON GENERAL PURPOSE FINANCIAL STATEMENTS -. The following funds and account groups are used by the COUNTY, and in conformity with generally accepted principles of governmental 3 accounting, are those into which the general purpose financial statements are to be classified and grouped for financial reporting and audit opinion purposes: . General funds · Special revenue funds . Debt service funds · Enterprise funds · Internal service funds · Capital projects funds · Expenditure trust funds . Agency funds · General fixed asset group of accounts · General long-term debt group of accounts 4...l.....2 SUPPLEMENTAL FINANCIAL REPRESENTATIONS - - Supp 1 ementa 1 to the above funds and accounts groups are the financial representations of 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 · Monroe County Comprehensive Plan Land Authority The AUDITOR will provide separately bound individual reports relating to each of the above entities or Constitutional Officers which will include an opinion, management letters and financial statements. 4...2 GENERAL AUD!T COND ITI ONS - - The AUD !TORS wi 11 conduct pre - audi t conferences with the Constitutional Officers of Monroe County concerning the ensuing auditing program, prior to commencement of their filed work connected with each annual audit. ~ The AUDITORS will communicate in writing with the Board of County Commissioners and all Constitutional Officers on or before November 1st of each year concerning any item revealed during the field work which may be included in the Management Letter to be issued pursuant to the provision entitled MANAGEMENT LETTER which is section 4.3 of this contract. 4 ~ MANAGEMENT LETTER -- A tentative Management Letter and preliminary financial audit report shall be delivered to the COUNTY and each County Agency according to Florida Statutes. 4.4 COMPLIANCE LETTER -- In addition to the Management 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. ~ AVAILABILITY OF RECORDS -- It is further contemplated that records relating to the audit of each year commencing on September 30, 1997, shall be available at the conclusion of each fiscal year no later than December 15, 1997 and December 15 of each succeeding year during the term of this contract. .4.....6 AUDIT STANDARDS -- Each audit shall be done inconformity with generally accepted auditing standards as promulgated throughout the American Institute of Certified Public Accountants (AICPA) Industry Audit Guide, Audits for State and Local Government Uni ts, AICPA standards and procedures, and, excl uding the review of economy and efficiency of operations and program results, standards and procedures set forth in the publ ication Government Auditing Standards issued by the Comptroller General of the United States. Requirements of Federal and State agreements and statutory audit requirements will be conformed with as each may be applicable. 4.7 COOPERATION WITH AUDITOR GENERAL AND CONSULTING FIRMS - - Where applicable, Kemp & Green, P. A., 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. 4.8 IRREGULARITIES .- Should irregularities or other unforseeable 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 ava il ab 1 e before s i gni fi cant addit i ona 1 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. U ILLEGAL ACTS -- The AUDITOR is aware that illegal acts may be discovered during the audit. However, it is recognized that the audit cannot be re 1 i ed upon to assure the di scovery of ill ega 1 acts, nor is the audi t 5 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. ~ STANDARD OF CARE .. In the performance of the audit, the AUDITOR shall be bound by and shall make the examination in accordance with generally accepted auditing standards. ~ EXPRESSION OF OPINION -- The AUDITOR shall express an unqualified opinion on the financial statements of all funds and other reports as described in the Request for Proposals for Professional Auditing Services dated March 11, 1997, or if unabl e to express an unqual i fied opi nion, the AUDITOR should state the reasons for the qualification or disclaimer of opinion. ARTICLE V EXTRA WORK ~ EXTRA WORK TO BE SPECIFICALLY REOUESTED BY COUNTY --The AUDITOR, upon receipt of a written request from the COUNTY, shall perform such additional auditing services as requested by the COUNTY. This may include a revi ew of the effi ci ency and economy of operat ions, systems of i nterna 1 control, operating and management procedures and effectiveness in achieving program results. The purchase of specialized services or extra audit services shall require submission of a written proposal by the AUDITOR for agreement and approval by the 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 VII of this Agreements. ARTICLE VI WORK PAPERS U For a period of three (3) years after completion of any work provi ded for herei n, the AUDITORS shall make the work papers, records and other evi dence and documents re 1 at i ng to such work ava il ab 1 e for inspect ion and copyi ng by the COUNTY and by the audi tors reta i ned by the COUNTY who succeed Kemp & Green, P.A. to the extent necessary to support the balances set forth in the most recent fi nanci a 1 statements of the COUNTY on whi ch the AUDITOR has reported . All pub 1 i c records under Flori da 1 aw shall be made available to the COUNTY, successor C.P.A. firms, and to the general public. Any copying done shall be done 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. 6 ARTICLE VII COMPENSATION ~ MAXIMUM FEES FOR FISCAL YEARS ENDED SEPTEMBER 30. 1997 AND SEPTEMBER 30. 1998 AND 1999 .. AUDITOR has exerci sed its best efforts in attempting to estimate the time requirements and based upon that estimate has established a fee for the three (3) years in which this audit shall be undertaken. In that the successful bid accepted by the County Commission of Monroe County was in the sum of THREE HUNDRED SEVENTY THOUSAND EIGHT HUNDRED AND NO/lOO DOLLARS ($370,800.00) for the next three (3) succeeding fiscal years it is agreed that the successful bidding party, Kemp & Green. P.A., shall be paid in the following fashion; that in accordance with the hourly rates hereinafter disclosed in 7.2 of the Agreement such records shall be made available to and delivered to the COUNTY from time to time and the COUNTY shall pay to Kemp & Green, P.A. on monthly billing therefore. It is agreed that the contempl ated amounts to be paid duri ng the three (3) fi scal years shall be as follows: September 30, 1997 September 30, 1998 September 30, 1999 FISCAL YEAR ENDING: $ 117.300.00 $ 124,900.00 128.600.00 Total for three (3) year period (bid as accepted) $ 370.800.00 Fees relative to the optional one year extension of this contract will be negotiated when the option is exercised. ~ HOURLY FEES .. The following schedule of hourly fees shall apply to 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 Commissioner: Partner in charge Manager Senior Accountant Staff Accountant Clerical $150.00 per hour $ 80.00 per hour $ 55.00 per hour $ 45.00 per hour $ 30.00 per hour ~ BILLING.. Each four weeks the AUDITOR shall submit a billing for all fees and expenses occurring during the preceding four weeks attributed to 7 the audit against this contract. These billings shall reflect the percentage of competed work performed pursuant to the entities and/or Constitutional Officers listed in Article 4.1.2. 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 AUDITOR's monthly statement. ~ RECORD KEEPING -- AUDITOR agrees to keep such records and accounts as may be necessary in order to record complete and correct entri es as to personne 1 hours charged and any expenses for whi ch AUDITOR expects to be reimbursed. Such books and records will be available at all reasonable times for examination and audit by COUNTY. ~ 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 bill or related expenses. ARTICLE VII I GENERAL 8...l NO ASSIGNMENT BY AUDITOR - - Thi s Agreement, or any interest herein. shall not be assigned, transferred or otherwise encumbered under any circumstances by the AUDITOR. except by the explicit direction of the County Commission of Monroe County, it being understood. however, that the persons menti oned in paragraph 7.2, who wi 11 undertake the actual work under thi s contract are to be excluded from this provision. However, the Agreement shall run to the COUNTY and to any of its successors. ~ 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, Charters, Bond Covenants, Administrative Codes, Rule and Regulations, which may pertain to the work required under this Agreements, including specifically those which pertain to "Conflicts of Interest" and "Employment Discrimination." ~ TERMINATION -- This contract can be terminated only for failure to fulfill any obligation under this agreement. 8 .8...A 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 AUDITOR accordingly. Such individual may, from time to time, designate one or more of hi s/her sta ff to perform all or part of the funct ions requi red thereunder and shall so advise the AUDITOR. ~ 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. 8.....6 INCORPORATION OF ALL PRIOR AGREEMENTS Thi s 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 not commitments, agreements, or understandings concerning the subject matter of this Agreement that are not contained in this document. All of the conditions, requirements, and provisions of that certain Request for Proposals for Professional Auditing Services dated March 11, 1997 are incorporated into this contract by reference. 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 and conditions contained herein shall be effective unless contained in a written document executed with the same formality and of equal dignity herewith. ~ REPORT COPIES -- The staff of the COUNTY shall be responsible for the publ ishing and submission of the Comprehensive Annual Financial Report. The AUDITOR shall provide separately bound individual reports as follows: number of copies Chairman, Board of County Commissioners Auditor General Clerk of the Circuit Court Tax Collector Property Appraiser Sheriff Supervisor of Elections Municipal Service District Tourist Development Funds Comprehensive Plan Land Authority 15 JMili'" ~~I.. 5 1 1 1 1 10 10 10 9 ~ EXECUTION .. This document shall be executed in ten (10) counterparts, each of which shall be deemed an original. IN WITNESS WHEREOF, the parties hereto have made and executed thi s Agreement on the respective dated 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 19th day of August, 1997 and KEMP & GREEN, P.A., Certified Public Accountants. COUNTY ~....:==-~~~- d:;-;:"i-n"~ j'''~~\ (" "',.;.,J Tv]! t.J~' ~j\ i .'...... , , ....\\ J_ ' 'l" l:.... .' ('J ' '; '\" ~;::1 t:~~! f (~~,:,~ ~~ ~." DANNY L. KOLHAGE, Cl erk Attest: MONROE COUNTY, BOARD OF COUNl By ~;-rQ ~~",-" l).t.... lerl< 19th day of August, 1997 AUDITOR WITNESSES: s~~ ~ c. D.fJ~ ~ I\...--- By 19th day of August, 1997 Z N~. ~unoN Y,'f7 10