Item O6 BOARD OF COUNTY CO ¢ I SSIONERS * ADD—ON *
AGENDA ITEM SUMMARY
Meeting Date: 12/11/2013 Division: Clerk
Bulk Item: Yes X No _ Department:
Staff Contact/Phone#: Amy Heavilin.293130
AGENDA ITEM WORDING: Approval of first amendment to Monroe County Audit Contract dated
July 18,2012 with Cherry Bekaert LLP,to provide specifics project closeout audit of State Revolving
Fund loan WW602091 between Monroe County and State of Florida,Department of Environmental
Protection,which provided funding from the Clean Water State Revolving Fund for the Big Coppitt
wastewater-project,as required by paragraph 2.03 of the loan agreement.
ITEM BACKGROUND: In April 2010,the County executed loan agreement WW602091 to provide
funding from the Clean Water State Revolving Fund i for the Big Coppitt wastewater project.
Paragraph 2.03(4) of the loan agreement provided that at the conclusion of the cost period, the County
would provide a specific project closeout audit. On July 18, 2012, the County entered into its latest
agreement with the firm of Cherry,Bekaert&Holland, LLP("Audit Contract")to-perform audit of the
County's financial records and to prepare an audit report. The audit services required by'loan
WW602091 are additional to the scope of services specified in the Audit Contract and are necessary.
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PREVIOUS RELEVANT.BOCC ACTION: Please see above.
CONTRACT/AGREEMENT CHANGES: The first amendment expands the scope of services to
include the closeout audit required by SRF loan WW602091 in return for a fixed fee of$12,000.00,
inclusive of costs, and updates the firm's name.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST$12,000.00 INDIRECT COST: BUDGETED: Yes No
DIFFERENTIAL OF LOCAL PREFERENCE:
COST TO COUNTY: $12,000.00 SOURCE OF FUNDS:
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REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year
APPROVED BY: County Attyti. :' OMB/Purchasing Risk Management
DOCUMENTATION: Included X Not Required
DISPOSITION: AGENDA ITEM# 0-6
* ADD—ON *
Revised 7/09
' .. y MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
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CONTRACT SUMMARY
Contract with: Cherry Bekaert LLP Contract#-
Effective Date: Dec. 11,20.13
Expiration Date:
Contract Purpose/Description:
First amendment to agreement'dated 7/18/2013,for project-specific audit
of DEP State Revolving Fund loan WW602091 and engagement letter with the auditing firm of.
Cherry Bekaert LLP.
Contract Manager: Amy Heavilin 3130 I Clerk/8
(Name). (Ext.) (Department/Stop#)
for BOCC meeting on 12/11/2013 Agenda Deadline:
CONTRACT COSTS
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Total Dollar Value of Contract: $ 12,000.00 Current Year Portion: $ 12,000.00
Budgeted?Yes[] No 0 Account Codes: - - - -
Grant: $ - - -
County Match: $ !- - - -
ADDITIONAL COSTS
Estimated Ongoing Costs: $_/yr For:
(Not included in dollar value above) 1 (eg.maintenance,utilities,janitorial,salaries,etc.)
CONTRACT REVIEW
Changes Date Out
Date In Needed Reviewer
Division Director Yes[]No0
Risk Management Yes0 No0
O.M.B./Purchasing YesO No0
County Attorney YesD_No t�, f. I a-10 X013
Comments:
OMB Form Revised 2/27/01 MCP#2 j
COUNTY OF MONROE,j FLORIDA
AUDIT CONTRACT
FIRST AMENDMENT
This is an amendment (First Amendment) to the contract, dated July 18, 2012 ("Audit Contract"),
by and between the Board of County Commissioners of Monroe County, Florida(hereinafter
"County") and Cherry, Bekaert&Holland, L.L.P.. (hereinafter"Auditor"), a Certified Public
Accountant limited liability partnership licensed to do business within the State of Florida
(collectively, the "Parties").
WHEREAS, the County is required under paragraph 2.03(4) of loan agreement WW602091 by
and between Monroe County and the State of Florida, Department of Environmental Proection
setting the terms and conditions for a State Revolving Fund loan in connection with the Big
Coppitt wastewater system to conduct a project-specific closeout audit within twelve (12)
months of the close of construction costs for the project; and
WHEREAS,the Clerk of the Court wishes to engage the Auditor for the purpose of conducting
the project-specific audit in addition to those duties already outlined in the Audit Contract; and
WHEREAS,the Auditor will accept the additional responsibilities; now therefore
IN CONSIDERATION of the mutual promises,benefitsjand covenants set forth herein, the
Parties agree as follows:
1. Under Section 1, SCOPE OF SERVICES, a new paragraph 1.11 is added, as follows:
1.11 The Auditor shall perform the project-spicific closeout audit of the County's
Florida Department';of Environmental Protection Loan No. WW602091 from
April 22, 2010 (date of inception) through loan close-out. The audit shall consist
of an audit of special purpose financial statement of the loan revenues and
expenditures,budget and actual, and shall be based on special purpose financial
statements supplied'by the Monroe County Clerk, as outlined in the engagement
letter dated December 4, 2013,by and between Auditor and County.
2. Under Section 4, COMPENSATION AND TERMS OF PAYMENT, a new paragraph is
added, as follows:
The fee for the project-specific closeout audit referenced in paragraph 1.11 is a
flat fee of twelve thousand dollars ($12,000.00), inclusive of all fees and costs.
Notwithstanding the terms set forth in the engagement letter dated December 4,
1
2013,the contractual fee will be paid in accordance with the Florida Local
Government Prompt Payment Act.
3. All other terms and conditions of the Audit Cont fact dated July 18, 2012 remain in full
force and effect.
IN WITNESS WHEREOF, the Parties hereto have caused this agreement to be executed on the
day and year first above written.
(SEAL)
Attest: AMY HEAVILIN, Clerk BOARD OF COUNTY COMMISSIONERS
By:
OF MONROE COUNTY, FLORIDA
Deputy Clerk
By:
Mayor/Chairperson
WITNESSES: AUDITOR
By:
Print name: Partner
Print name:!
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Print name:
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COUNTY OF MONROE;FLORIDA
AUDIT CONTRACT
FIRST AMENDMENT
This is an amendment(FirstAmendment)to the contract dated July 18,2012("Audit Contract"),
by and between the Board of County Commissioners of Monroe County, Florida(hereinafter
"County")and Cherry,Bekaert&1Holland,L.L.P. (hereinafter"Auditor"),a Certified Public
Accountant limited liability partnership licensed to do business within the State of Florida
(collectively,the"Parties").
WHEREAS,the County is required under paragraph 2.03(4)of loan agreement WW602091 by
and between Monroe County and the State of Florida,Department of Environmental Protection
setting the terms and conditions for a State Revolving Fund loan in connection with the Big
Coppitt wastewater system to conduct a project-specific',closeout audit after the close of
construction costs for the project;and
WHEREAS,the Clerk of the Court wishes to engage the Auditor for the purpose of conducting
the project-specific audit in addition to those duties already outlined in the Audit Contract;and
WHEREAS,the Auditor will accept the additional responsibilities;and
WHEREAS, it is advisable to update the Audit Contractito reflect the name change of the
auditing firm from Cherry, Bekaert L.L.P.to Cherry Bekaert L.L.P.;now therefore
IN CONSIDERATION of the mutual promises,benefitsi and covenants set forth herein,the
Parties agree as follows:
1. Under Section 1,SCOPE OF SERVICES,a new'paragraph 1.11 is added,as follows:
1.11 The Auditor shall perform the project-speicific closeout audit of the County's
Florida Department of Environmental Protection Loan No. WW602091 from
April 22,2010(date of inception)through loan close-out. The audit shall consist
of-an audit of special purpose fmancial statement of the loan revenues and
expenditures,budget and actual,and shalllL be based on special purpose financial
statements supplied by the Monroe County Clerk, as outlined_in-the-engagement
letter dated December 4, 2013,by and between Auditor and County.
2. Under Section 4,COMPENSATION AND TERMS OF PAYMENT,a new paragraph is
added,as follows:
1
The fee for the project-specific closeout audit referenced in paragraph 1.11 is a
flat fee of twelve thousand dollars($12,000.00),inclusive of all fees and costs.
Notwithstanding the terms set forth in the engagement letter dated December 4,
2013, the contractual fee will be paid in accordance with the Florida Local
Government Prompt Payment Act.
3. The name of the firm is changed from Cherry,Bekaert&Holland LLP to Cherry Bekaert
LLP wherever it appears in the Audit Contract including this amendment.
4. All other terms and conditions of the Audit Conti-act-dated July 18,2012 remain in full
force and effect.
IN WITNESS WHEREOF,the Parties hereto have caused this agreement to be executed on the
day and year first above written.
(SEAL)
Attest: AMY HEAVILIN,Clerk BOARD OF COUNTY COMMISSIONERS
By: OF MONROE COUNTY,FLORIDA
Deputy Clerk
By:
Mayor/Chairperson
WITNESSES: AUDITOR.
By:
Print name: ! Partner
Print name:
Print name:
MONROE COUNTY ATTORNEY
APvrROV DATM:
+1YNTHIA L.``1ALL
ASSISTANT C- o. -UNTY ATTORNEY
Date
�AaLol;
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Cherry Bekaert
CPAs&Advisors
December 4, 2013
Mrs.Amy Heavilin, CPA
Clerk of Circuit Court and Comptroller
Monroe County, Florida I
500 Whitehead Street
Key West, Florida 33040
Dear Mrs. Heavilin:
This engagement letter between Monroe County, Florida (hereafter referred to as the
"County") and Cherry Bekaert LLP (the "Firm" or "Cherry Bekaert") sets forth the nature and
scope of the services we will provide, the County's required involvement and assistance in
support of our services, the related fee arrangements and other Terms and Conditions,which
are attached hereto and incorporated by reference, designed to facilitate the performance of
our professional services and to achieve the mutually agreed upon objectives of the County.
SUMMARY OF SERVICES
We will provide the following services to the County:
Audit services
1. We will audit the special purpose financial statements of the loan revenues and
expenditures—budget and actual - of-the County's Florida Department of Environmental
Protection Loan No. WW602091 from April i22, 2010 (date of inception) through loan
close-out. The special purpose-financial statements are the responsibility of the County's
management.
YOUR EXPECTATIONS
As part of our planning process, we have discussed with you your expectations of Cherry
Bekaert, changes that occurred during the year, your views on risks facing you, any
relationship issues with Cherry Bekaert, and specific engagement arrangements and timing.
Our services plan, which;includes our audit plan,' is designed to provide a foundation for an
effective, efficient, and quality-focused approach' to accomplish the engagement objectives
and meet or exceed your!expectations. Our service plan will be reviewed with you periodically
and will serve as a benchmark against which you will be able to measure our performance.
Any additional services that you may request, and that we agree to provide, will be the
subject of separate written arrangements.
The engagement will be ed by Eddie Burke, who will be responsible for assuring the overall
quality,value, and timeliness of the services provided to you.
AUDIT SERVICES
The objective of our audit is to report on the fairness of presentation of the special purpose
financial statements and the rules and regulations of the Florida Department of
Environmental Protection. The special purpose financial statements are not intended to be a
presentation in conformity with U.S. generally accepted accounting principles.
BAKER TI LLY
2626 Glenwood Avenue,Suite 200,Raleigh,NC 27608-1045 I r 919.782.1040 I cbh.com INTERNATIONAL
Monroe County, Florida
December 4,2013
Page 2
The reports on internal control and compliance will each include a paragraph that states that
the purpose of the report is solely to describe (1)1the scope of testing of internal control over
financial reporting and compliance and the result of that testing and not to provide an opinion
on the effectiveness of internal control over financial reporting or on compliance, and (2) that
the report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering internal control over financial reporting and compliance. The
paragraph will also state that the report is not suitable for any other purpose.
Our audit will be conducted in accordance-with auditing standards generally accepted in the
United States of America; Government Auditing Standards, issued by the Comptroller
General of the United States; the rules and regulations of the Florida Department of
Environmental Protection; and will include tests of accounting records and other procedures
as deemed necessary to enable us to express such opinions and to render the required
reports. If any of our opinions resulting from the procedures described above are other than
unqualified, we will fully discuss the reasons with' you in advance. If, for any reason, we are
unable to complete the audit or are unable to form or have not formed opinions, we may
decline to express opinions or issue a report as a result of this engagement.
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FEES
The estimated fee contemplates only the services described in the Summary of Services
section of this letter. If Management requests additional services not listed above, we will
provide an estimate of those fees prior to commencing additional work.
The following summarizes the fees for the services described above:
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Description of Services Estimated Fee
Audit services
Audit of the special purpose financial statements $12,000
Total $12,000
The fees will be billed periodically. Invoices are due on presentation. A service charge will be
added to past due accounts equal to 1-1/2% per month (18% annually) on the previous
month's balance less payments received during the month,with a minimum charge of$2.00
per month.
If the foregoing is in accordance with your understanding, please sign a copy of this letter in
the space provided and return it to us. If you have any questions, please call Eddie Burke at
919-782-1040.
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Monroe County, Florida
December 4,2013
Page 3
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Sincerely,
CHERRY BEKAERT LLP j
ATTACHMENT—Engagement Letter Terms and Conditions
Monroe County, Florida
ACCEPTED BY:
TITLE: DATE:
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Attachment- Page 1
Cherry Bekaert LLP
Engagement Letter Terms and Conditions
The following terms and conditions are an integral part of the attached engagement letter and should be
read in their entirety in conjunction with your review of the letter.
LIMITATIONS OF THE AUDIT REPORT
Should the County wish to include or incorporate by reference these special purpose financial statements
and our report thereon into any other document at some future date,we will consider granting permission
to-include-our report into another such document at the time of the-request. However,we may-be required
by generally accepted auditing standards ("GAAS")to perform certain procedures before we can give our
permission to include our report in:another document such as an annual report, private placement,
regulator filing, official statement, offering of debt securities,!etc. You agree that you will not include or
incorporate by reference these special purpose financial statements and our report thereon, or our report
into any other document without our prior written permission In addition, to avoid unnecessary delay or
misunderstandings, it is important to provide us with timely notice of your intention to issue any such
document.
LIMITATIONS OF THE AUDIT PROCESS
In conducting the audit, we will perform tests of the accounting records and such other procedures as we
consider necessary in the circumstances to provide a reasonable basis for our opinion on the special
purpose financial statements. We 'also will assess the accounting principles used and significant
estimates made by Management, as well as evaluate the overall financial statement presentation.
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Our audit will include procedures designed to obtain reasonable assurance of detecting misstatements
due to errors or fraud that are material to the financial statements. Absolute assurance is not attainable
because of the nature of audit evidence and the characteristics of fraud. For example, audits performed in
accordance with GAAS are based on the concept of selective'testing of the data being examined and are,
therefore, subject to the limitation that material misstatements'due to errors or fraud, if they exist, may not
be detected. Also, an audit is not designed to detect matters that are immaterial to the financial
statements. In addition, an audit conducted in accordance; with GAAS does not include procedures
specifically designed to detect illegal acts having an indirect effect (e.g., violations of fraud and abuse
statutes that result in fines or penalties being imposed on the County) on the special purpose financial
statements.
Similarly, in performing our audit we'will be aware of the possibility that illegal acts may have occurred.
However, it should be recognized that our audit provides no!assurance that illegal acts generally will be
detected, and only reasonable assurance that illegal acts having a direct and material effect on the
determination of financial statement amounts will be detected. We will inform you with respect to errors
and fraud, or illegal acts that come to our attention during the course of our audit unless clearly
inconsequential. In the event that we have to consult with the County's counsel or counsel of our
choosing regarding any illegal acts we identify, additional fees incurred may be billed to the County. You
agree to cooperate fully with any procedures we deem necessary to perform with respect to these
matters.
If, for any-reason, we are unable toicomplete the audit, or are unable to form, or have not formed an
opinion on the special purpose financial statements, we may1 decline to express an opinion or decline to
issue a report as a result of the engagement. We will notify the appropriate party within your organization
of our decision and discuss the reasons supporting our position.
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Attachment- Page 2
MANAGEMENT'S RESPONSIBILITIES RELATED TO THE AUDIT
Management is responsible for the fair presentation of the special purpose financial statements, for
making all financial records and related information available to us, for ensuring that all material
information is disclosed to us, and fo i identifying and ensuring that the County complies with the laws and
regulations applicable to its activities and with the provisions of contracts and grant agreements.
Management is also responsible for adjusting the special purpose financial statements to correct material
misstatements, informing us of events that occurred subsequent to the statement date until the date of
the auditor's report that might affect the special purpose financial statements or related disclosures and
informing us of any discovery of facts related to items that existed at the financial statement date that
might affect the special purpose financial statements or related disclosures.
Management is responsible for informing us of its views regarding the risk of fraud at the County.
Management must inform us of their knowledge of any allegations of fraud or suspected fraud affecting
the County received in communications from employees, former employees, regulators, or others and for
informing us about all known or suspected fraud affecting the County involving (a) Management, (b)
employees who have significant roles in internal control, and (c) others where the fraud could have a
material effect on the financial statements.
Management is responsible for the design and implementation of programs and controls over financial
reporting and to prevent and detect fraud. Appropriate supervisory review procedures are necessary to
provide reasonable assurance that adopted policies and prescribed procedures are adhered to and to
identify errors and fraud or illegal acts. As a part of our audit, we will-consider the County's internal control
structure, as required by GAAS, sufficient to plan the audit and to determine the nature, timing, and extent
of auditing procedures necessary for expressing our opinion concerning the financial statements. An audit
is not designed to provide any assurance on internal controls.jAs part of our consideration of the County's
internal control structure,we will inform you of matters that come to our attention that represent significant
deficiencies or material weaknesses in the design or operation of the internal control structure.
Management is responsible for establishment and maintenance of a process for tracking the status of
audit findings and recommendations. Management is also responsible for identifying to us previous audits
or other engagements or studies related to the objectives discussed in the Audit Objectives section of this
letter. This responsibility includes relaying to us corrective actions taken to address significant findings
and recommendations resulting from those audits or other engagements or studies. You are also
responsible for providing management's views on our current findings, conclusions and
recommendations, as well as your planned corrective actions,!and the timing and format related thereto.
At the conclusion of the engagement, Management will provide to us a representation letter that, among
other things, addresses (1) Management's responsibilities 'related to the audit and confirms certain
representations made to us during the. audit, including, Management's acknowledgement of its
responsibility for the design and implementation of programs and controls to prevent and detect fraud; (2)
Management's responsibilities related to the monitoring of internal control over financial reporting; and (3)
Management's knowledge, directly or'from allegations by others, of fraud or suspected fraud affecting the
County. The-representation-letter-will-also-affirm to us-that Management-believes-that-the-effects-of-any
uncorrected misstatements, if any, pertaining to the financial 'statements are immaterial, both individually
and in the aggregate, to the financial statements taken as a whole. The Firm will rely on Management
providing these representations to us, both in the planning and performance of the audit, and in
considering the fees that we will !charge to perform the audit. Because we will be relying on
Management's representations, you agree to indemnify the Firm, and its partners and employees, and
hold them harmless from all claims, liabilities, losses, and coats arising in circumstances where there has
been a known misrepresentation bylan officer or employee of the County regardless of whether such
officer or employee was acting in the County's interest, and even if the Firm acted negligently or
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Attachment- Page 3
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wrongfully in failing to uncover or detect such misrepresentation. This indemnification will survive
termination of this letter.
AUDIT-PROCEDURES—GENERAL
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
special purpose financial statements; therefore, our audit will involve professional judgment about the
number of transactions to be examined and the areas to be tested. We will plan and perform the audit to
obtain reasonable rather than absolute assurance about whether the special purpose financial statements
are free of material misstatement,! whether from (1) errors, (2) fraudulent financial reporting, (3)
misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to
the County or to acts by managerent or employees acting on behalf of the County. Because the
determination of abuse is subjective) Government Auditing Standards do not expect auditors to provide
reasonable assurance of detecting abuse.
Because an audit is designed to provide reasonable, but not absolute assurance and because we will not
perform a detailed examination of all transactions, there Hs a risk that material misstatements or
noncompliance may exist and not be detected by us. In addition, an audit is not designed to detect
immaterial misstatements or violations of laws or governmental regulations that do not have a direct and
material effect on the financial statements or major programs.1However, we will inform you of any material
errors and fraud, or illegal acts that;come to our attention during the course of our audit. We will also
inform you of any violations of laws or governmental regulations that come to our attention, unless clearly
inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not
extend to any later periods for which We are not engaged as auditors.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, creditors
and financial institutions. We will request written representations from your attorneys as part of the
engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will
also require certain written representations from you about the financial statements and related matters.
AUDIT PROCEDURES—INTERNAL'CONTROLS
Our audit will include obtaining an understanding of the County and its environment, including internal
controls, sufficient to assess the risks of material misstatement of the financial statements and to design
the nature, timing and extent of further audit procedures. Teats of-controls may be performed to test the
effectiveness of certain controls that!we consider relevant to preventing and detecting errors and fraud
that are material to the special 'purpose financial statements and to preventing and detecting
misstatements resulting from illegal acts and other noncompliance matters that have a direct and material
effect on the special purpose financial statements. Our tests, if performed, will be less in scope than
would be necessary to render an !opinion on internal control and, accordingly, no opinion will be
expressed in our report on internal control issued pursuant to Government Auditing Standards.
An audit Asnot-designed to provide assurance on internal control-or to identify--significant deficiencies.
However, during the audit, we will communicate to management and those charged with governance
internal control related matters that are required to be communicated under professional standards, and
Government Auditing Standards.
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Attachment- Page 4
AUDIT PROCEDURES-COMPLIANCE
As part of obtaining reasonable assurance about whether the special purpose financial statements are
free of material misstatement, we will perform tests of the County's compliance with applicable laws and
regulations and the provisions of the Florida Department of Environmental Protection Loan No.
WW602091. However, the objective, of those procedures will not be to provide an opinion on overall
compliance and we will not express such an opinion in our report on compliance issued pursuant to
Government Auditing Standards.
Communications
At the conclusion of the audit engagement, we may provide Management and those charged with
governance a letter stating any significant deficiencies or material weaknesses which may have been
identified by us during the audit and our recommendations designed to help the County make
improvements in its internal control structure and operations related to the identified matters discovered in
the financial statement audit. As part of this engagement we will ensure that certain additional matters are
communicated to the appropriate members of the County. Such matters include (1) our responsibility
under GAAS; (2) the initial selection of and changes in significant accounting policies and their
application; (3) our independence with respect to the County; (4) the process used by Management in
formulating particularly sensitive accounting estimates and the basis for our conclusion regarding the
reasonableness of those estimates; (5) audit adjustments, ;if any, that could, in our judgment, either
individually or in the aggregate be significant to the financial statements or our report; (6) any
disagreements with Management concerning a financial accounting, reporting or auditing matter that
could be significant to the financial statements; (7) our views about matters that were the subject of
Management's consultation with other accountants about auditing and accounting matters; (8) major
issues that were discussed with Management in connection with the retention of our services, including,
among other matters, any discussions regarding the application of accounting principles and auditing
standards; and (9) serious difficulties that we encountered in dealing with Management related to the
performance of the audit.
Government Auditing Standards require that we provide you with a copy of our most recent quality control
review report. Our most recent peer review report accompanies this letter.
OTHER MATTERS
Access to working papers
The working papers and related documentation for the engagement are the property of the Firm and
constitute confidential information. We have a responsibility to retain the documentation for a period of
time to satisfy legal or regulatory requirements for records retention. Except as discussed below, any
requests for access to our working papers will be discussed with you prior to making them available to
requesting parties.
We may be requested to make certain documentation available to regulators, governmental agencies
(e.g., SEC, PCAOB, HUD, DOL, etc.) or their representatives (Regulators") pursuant to law or
regulations. If requested, access to the documentation will bel provided to the Regulators. The Regulators
may intend to distribute to others, including other governmental agencies, our working papers and related
documentation without our knowledge or express permission. You hereby acknowledge and authorize us
to allow Regulators access to and copies of documentation as requested. In addition, our Firm, as well as
all other major accounting firms, participates in a "peer ,review" program covering our audit and
accounting practices as required by the American Institute of Certified Public Accountants. This program
requires that once every three years we subject our qualityi assurance practices to an examination by
another accounting firm. As part of the process, the other firm will review a sample of our work. It is
possible that the work we perform for you may be selected by the other firm for their review. If it is, they
are bound by professional standard0o keep all information confidential. If you object to having the work
we do for you reviewed by our peer reviewer, please notify us yin writing.
Attachment-Page 5
Electronic transmittals
During the course of our engagement, we may need to electronically transmit confidential information to
each other, within the Firm, and to other entities engaged by either party. Although email is an efficient
way to communicate, it is not always!a secure means of communication and thus, confidentiality may be
compromised. You agree to the use of email and other electronic methods to transmit and receive
information, including confidential information between the Firm, the County and other third party
providers utilized by either party in connection with the engagement.
Subpoenas
In the event we are requested or authorized by you or required by government regulation, subpoena, or
other legal process to produce our working papers or our personnel as witnesses with respect to our
engagement for you, you will, so long as we are not a party to the proceeding in which the information is
sought, reimburse us for our professional time and expense, as well as the fees and expenses of our
counsel, incurred in responding to such a request at standard billing rates.
Dispute resolution procedures
If any dispute, controversy or claim arises in connection, with the performance or breach of this
agreement, either party may, on written notice to the other party, request that the matter be-mediated.
Such mediation would be conducted by a mediator appointed by and pursuant to the rules of the
American Arbitration Association (AAA) or such other neutral facilitator acceptable to both parties. Both
parties would exert their best efforts to discuss with each other in good faith their respective positions in
an attempt to finally resolve such dispute, controversy, or claim.
TERMS AND CONDITIONS SUPPORTING FEE
The estimated fees set forth in the attached engagement letter are based on anticipated full cooperation
from your personnel, timely delivery of requested audit schedules and supporting information, timely
communication of all significant accounting and financial reporting matters, the assumption that
unexpected circumstances will not be encountered during thejaudit, as well as working space and clerical
assistance as mutually agreed upon and as is normal and reasonable in the circumstances. We strive to
ensure that we have the right professionals scheduled on each engagement. As a result, sudden County
requested scheduling changes or scheduling changes necessitated by the agreed information not being
ready on the agreed upon dates can result in expensive downtime for our professionals. Any last minute
schedule changes that result in downtime for our professionals could result in additional fees. Our
estimated fee does not include assistance in bookkeeping or other accounting services not previously
described. If for-any-reason the County is unable to provide such schedules, information and assistance,
the Firm and the County will mutually revise the fee to reflectadditional services, if any, required of us to
achieve these objectives.
The estimated fees contemplate that the County will provide adequate documentation of its systems and
controls related to significant transaction cycles and audit areas.
In providing our services, we will con!suit with the County with respect to matters of accounting, financial
reporting or other-significant business-issues-as permitted by professional-standards.-Accordingly,--time-
necessary to effect a reasonable amount of such consultation is reflected in our fee. However,should a
matter require research, consultation or audit work beyond that amount, the Firm and the County will
agree to an appropriate revision in our fee.
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The estimated fees are based on auditing and accounting standards effective as of the date of this
engagement letter and known to apply to the County at this time, but do not include any time related to
the application of new auditing or accounting standards that Iimpact the County for the first time. If new
auditing or accounting standards are iissued subsequent to the date of this letter and are effective for the
period under audit, we will estimate the impact of any such standard on the nature, timing and extent of
our planned audit procedures and will communicate with you concerning the scope of the additional
procedures and the estimated fees.
The County agrees to pay all costs of collection (including reasonable attorneys' fees) that the Firm may
incur in connection with the collection of unpaid invoices. In the event of nonpayment of any invoice.
rendered by us, we retain the right to (a) suspend the performance of our services, (b) change the
payment conditions under this engagement letter, or(c)terminate our services. If we elect to suspend our
services, such services will not be resumed until your account is paid. If we elect to terminate our services
for nonpayment, the County will be obligated to compensate;us for all time expended and reimburse us
for all expenses through the date of termination.
This engagement letter sets forth the entire understanding between the County and the Firm regarding
the services described herein and supersedes any previous proposals, correspondence, and
understandings whether written or oral. Any subsequent changes to the terms of this letter, other than
additional billings, will be rendered in.writing and shall be executed by both parties. Should any portion of
this engagement letter be ruled invalid, it is agreed that such invalidity will not affect any of the remaining
portions.
• • .
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Bonds, Lucinda •
From:. Bonds,Luanda'
Sent: Monday,July 29,2013 1:19 PM
To: 'scadile@monroi-clerk.com'
Subject: Request for a required project specific audit UWV602091
Attachments: D00072913-07292013131424.pdf
•
Chapter 403.1835,Florida Statutes,and your loan agreement require a separate closeout audit of this project,
which is due in three months. Per the loan agreement this audit is due 12 months after.the final amendment
was done. This audit is in addition to any annual audit and must include the entire loan period. If the auditor
questions any project costs or raises other concerns,please include your response. Enclosed is the financial
statement for the entire loan. The mailing address is: i •
ATTN Cindy Bonds
'Division of Water Resource Management
• . Department of Environmental Protection • • •
2600 Blair Stone Road,MS#3505
Tallahassee,Florida 32399-2400
•
If you have any questions,you may call me at 850-245-8365,fa*850 245-8411 or email
lucinda.bonds@dep.state:fl.us.
I show a request was_sent_prior on 4/1/2013 but I can't find the email. Could you contact me to see if this audit was
• already sent to me and I didn't log it in.
Thanks,
Lucinda "Cindy" Bonds
•
Operations Analyst II
State Revolving Fund Management .
Department of Environmental Protection
2600 Blair Stone Road MS3505
Tallahassee, Florida 32399-2400
850-245-8365(P)
•
850-245-8411 (F)
Lucinda.Bo»ds@dep.state fl.us
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1
• SRF : CW Audit Report rage tot t
SRF - State Revolving Fund
I i •
Report: CW Audit Report as of 06/05/2012
• Financial Statement for Auditors Through 3une 05,2012
[Project Sponsor:Monroe County
{Funding Number.WW 602091 CFDA:66A58 FEW Number:596000749
`Project Description:Collection,Transmission,and Treatment-Big Copp)tt service area
1For the purposes of the Single Audit Act,disbursements for this loan are considered federal funds under a grant from the Environmental
(Protection Agency,Capitalization Grants for the State Revolving Fund.
•
Mama* ; Award Date I Wan Peasant PPAanooat s 1TbhlAsocot SenteFes 1 Rats 6ARats
j Original Award 04/22/2010- 20,000,000- 0. 20,000,000, 400,000• 1.355 1.355 •
Amendment 1 06/04/2012 (499,460)• 0 ! (499,460). 0; :000 : .000
Todb: • 19,500,540 . 0 15,500,540 400,000
Loan PF Total
Amount Disbursed Through 06/05/2012: 19,500,540.00 0.00 19,500,540.00
Amount Disbursed 6/6/2011-06/05/2012: 5,005,734.00 0.00 5,005,734.00
} Loan Principal Service Fees Collected Through 0.00
06/05/2012:
Loan Principal Service Fees Collected 6/6/2011- 0.00
06/05/2012:
Capitalized Interest Through 06/05/2012: • 0.00
Non-Principal Service Fees Assessed Through 390,011.00
06/05/201.2:
} Non-Principal Service Fees Assessed 6/6/2011- 390,011.00
06/05/2012:
Non-Principal Service Fee Cap Int Through 0.00
06/05/2012: -
Principal Paid Through 06/05/2012: 9,837,397.65
Principal Paid 6/6/2011-06/05/2012: 8,033,070.49
Interest(and GAA)Paid Through 06/05/2012: 664,314.80
Serv.Fee Interest Paid Through 06/05/2012: 1,65055
Interest(and GAA)Paid 6/6/2011-06/05/2012: 331,893.96
Sew.Fee Interest Paid 6/6/2011-06/05/2012: • 1,650.55
Non-Principal Service Fee Charges Paid 6/6/2011- 390,011.00
06/05/2012:
Non-Principal Service Fee Charges Paid Through 390,011.00
06/05/2012:
Unpaid Principal as of 06/05/2012: 9,663,142.35
Unpaid Service Fee Charges as of 06/05/2012: 0.00
Interest Due as of 06/05/2012: 29,415.66
Gtr.AD.Assort.Due as of 06/05/2012: 29,415.66
Serv.Fee Interest Due as of 06/05/2012: 0.00
Total Due as of 06/05/2012: 9,721,973.67
Repayments Made as of 06/05/2012: 7
Repayments-Remaining-as-of 06/05/2012: 36'
Present Repayment Amount; 668,374.00
Semi Annual Repayment Dates March 1S N
Septanber15
Proposed Date of First Repoynuerut: • 15-SEP-10
1
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https://webapps.dep.state.fl.us/DwrmSrf/reportdo 7/29/2013
•
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SRF Disbursement History Record
Sponsor:Monroe County CW SRF State Bank • -.
Funding#602091 1
• Amend# Award Date PF Amount Loan Amount Total Amount Rate GAA Rate •
0 04/22/2010 0 20,000,000 20,000,000 1.355 1.355 .
1 06/04/2012 • 0 (499,460) (499,460) • 0.000 0.000
Totals: 0 _ 19,500,540 19,500,540
•
•
Amendment 0 Award Date: 04/22/2010 •PF Amount:0 Loan Amount:20,000,000 Rate: 1.355; GAA Rate: 1.355 •
Amount. Loan • Loan
Db# Date Disbursed PF Amount • Amount PF Balance Balance Balance Note
0 20,000,000 20,000,000
06/04/2012 (499,460)- -- - 0 - (499,460) 0------19 500,-540 19,500,540--Decrease--Amendment-.1 ---=
1 05/05/2010 . 14,494;806. 0 14,494,806 0 5,005,734 5;005,734
2 09/08/2011 5,005,734 0 -5,005,734 0 0 - 0• !
• Total - 19,500,540 0 19,500,540
•
PF Amount Disbursed:0 .
Loan Amount Disbursed: 19,500,540 - 0 • •
Total Amount Disbursed: 19,500,540 •
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Mon,29 Ju12013 13:15 Page 1
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Bonds,Lucinda '
From: i Bonds;Lucinda
Sent. ' Monday.April 01;20139:22 AM
To: 'scarfite@monroe-derkeom'
Subject:' Request for project specific audit WW602091
Attachments: D00040113-04012013091458.pdf .
Chapter 403.1835,Florida Statutes,and your loan agreement require a separate closeout audit of this project, .
which is due in three months. Per the loan agreement this audit is due 12 months after the final amendment '
was done. This audit is in addition to any annual audit and mast include the entire loan period. If the auditor •
questions any project costs or raises other concerns,_please inchde your response. Enclosed is the financial
statement for the entire loan. The mailing address i
. ATTN:Cindy Bonds.
• Division of Water Resource Management
Department of Environmental Protection
• 2600 Blair Stone Road;MS#3505
Tallahassee,Florida 32399-2400
•
If you have any questions,you may call me at 850-245-8365,fax 850 245-8411 or entail
lucinda!bonds@dep.state.fl.us, .
•
•
Lucinda "Cindy" Bonds
Operatiens Analyst II •
rr
Department or rflyeat menta/Pratectivn
2600 Air Stone bad MS3505
Tallahassee,Florida 32399--2400 I •
8502458355
Lucinda.Bandsideu.state.f1.us •
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' 1 •
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SRF :CW Audit Report •Pagel.of 1
1 ,
• SRF - State. Revolving Fund ' i
i I
Report: CW Audit Report as of 06/05/2012 j -
! Financial Statement for Auditors Through June 05,2012
!Project Sponger:Monroe County
'Funding Number:WIN 602091 1 CFDA:66.458 FEW Number:596000749
Project Description:Collection,Transmission,and Treatment-Big Coppitt service area
!For the purposes of the Single Audit Act,disbursements for this loan are considered federal funds under a grant from the Environmental
`Protection Agency,Capitalization Grants for the State Revolving Fund. j
Ianemont .i Award Date . I loan Amount • ' PF Amount Total Amount Setvke Foos : Rat® GA Rata
Original Aw+rd 04/22/2010 20,000,000 0 I 20,000,000 .400,000� 1.355 1.355
!-Amendment 1 06/04/2012 (499,460) 0 ! (499,460) 0 .000 .000
!Mats: 19,500,540 O . I - 19,500,540 400,000
I Loan • PF Total
. Amount Disbursed Through 06/05/2012: 19,500,540.00 0.00 - 19,500,540.00•
•
• Amount Disbursed 6/6/2011-06/05/2012: 5,005,734.00 0.00 5,005,734.00
•• Loan Principal Service Fees Collected Through 0.00
i 06/05/2012:
Loan Principal Service Fees Collected 6/6/2011- 0.00
I 06/05/2012: . ! •
Capitalized Interest Through 06/05/2012: . 0.00
I Non-Principal-Service Fees Assessedl;Through
! 06/05/2012: 390,011.00 •
. NOn-Principal Service Fees Assessed 6/6/2011- 390,011.00
I06/05/2012:
. I Non-Principal Service Fee Cap Int,Through ' .
I 06/05/2012: 0.00
•
i •• Principal Paid Through 06/05/2012: 9,837,397.65
•
Principal Paid 6/6/2011-06/05/2012: • 8,833,070A9
, 2nterest•(and GAA)Paid Through 06/05/2012: 664,314:80 •
•
Serv:Fee Interest Paid Through 06/05/2012: 1,650.55
• • Interest(and GAA)Paid 6/6/2011-06/05/2012: j • 331,893.96
Sim.Fee Interest Paid 6/6/2011 06/05/2012: . • 1,650.55
NonWrincipal Service Fee Charges Paid 06/2011- .
390,011.00
I 06/05/2012: .
1 . Non-Principal Service Fee Charges Paid Through •
06/05/2012: ! 390,O1iA0
Unpaid Principal as of 06/05/2012: 9,663,142.35.
!Unpaid Service Fee Charges as of 06/05/2012: i • 0.00 •
•
Interest Due as of 06/05/2012: I 29,415.66 •
•• ! Gtr.All.Assmt.Due as of 06/05/2012: ! 29,415.66
• i .Serv.Fee Interest Due as of 06/05/2012: ! 0.00
. I Total Due as of 06/05/2012: 9,721,973.67
Repayments Made as of 06/05/2012: • j• . • 7
1 Repayments Remaining as of 06/05/2012: 36
Present Repayment Amount: 668,374.00 •
•
Semi-Annual Repayment Dates: March 15&
September15
•i
' Proposed Date of First Repayment: • 15-SEP-10 '
'
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https://w,ebapps.dep.state.fl.usJDwrmSrf/report.do • 4/1/2013 -
•
•
SRF Disbursement History Record .
Sponsor:.Monroe County . .CW SRF State Bank -
Funding#602091 • . • • . . • •
• Amend# • Award Date ' , PF Amount Loan Amount • • Total Amount • Rate - GAA Rate . •
• 0 04/22/2010 0 20,000,000 . . • 20,000,000 1.355 . 1.355•
1 . 06/04/2012 • , 0• (499,460) (499,460) 0.000 0.000
Totals: 0 19,500,540 19,500,540 - i
•
Amendment 0 Award Date: 04/22/2010. PF Amount:0: Loin Amount:20,000,000 Rate: 1.355 GAA Rite: 1.355 •
• • Amount • • Loan. Loan. • .
Db# ' Date Disbursed PF Amount Amount PF Balance Balance • Balance Note ' -
0 20,000,000 20,000,000 •
06/04/2012 (499,460) 0 =(499;460) 0 19,500,540 = 19,500,540 Decrease Amendment-1 •
. 1 05/05/2010 14,494,806 • 0 , 14,494,806 . . ' • 0 5,005,734 - 5,005,734 • .
2 09/08/2011 5;005,734 ' 0 5,005,734 0 ' • 0 • .0
• • Total 19;500,540 0 19,500,540 •
PF Amount Disbursed:0 • • • . . •
Loan Amount Disbursal 19,500,540
Total-Amount-Disbursed 19,500,540 -- — --- — — — — — - — -- —= — -- ---
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Mon, 1 Apr 2013 08:21 • Page 1 .
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