Resolution 276-1984
Danny L. Kolhage
Clerk
RESOLUTION NO. 276-1984
A RESOLUTION AUTHORIZING THE CHAIRMAN OF THE
BOARD OF COUNTY COMMISSIONERS OF MONROE
COUNTY, FLORIDA, TO APPROVE AND EXECUTE AN
AGREEMENT BY AND BETWEEN MONROE COUNTY AND
KEMP & ROSASCO, CERTIFIED PUBLIC ACCOUNTANTS.
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA, as follows:
That the Mayor and Chairman of the Board of County Commis-
sioners of Monroe County, Florida, be and is hereby authorized to
execute an Agreement by and between Monroe County and Kemp &
Rosasco, Certified Public Accountants, a copy of which is
attached hereto.
PASSED AND ADOPTED by the Board of County Commissioners of
Monroe County, Florida, at a regular meeting of said Board held
on the
21st
day of September, A.D. 1984.
BOARD OF COUNTY COMMISSIONERS
OF /~ COUNTY, F~ORIDA
By/ZJ?--rL-- <:;;~ ..
P.... May6rretiffrnfah-~
( Seal)
Attest :DANNY L. KOLHAGE, Clerk
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APPROVED AS TO FORM
AND LEGAL SUFFICIENCY.
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AGIZEEMENT
Between
MONROE COUNTY
and
KEMP & ROSASCO,
Certif~ed Public Accountants
PROVIDING FOR AN AUDIT OF COUNTY RECORDS
COrlliENCING JULY 1, 1984 AND TO BE FOR THE
NEXT CONSECUTIVE THREE YEARS TO TE~~INATE
AT THE CONCLUSION THEREOF.
KNOV.J ALL MEN BY THESE PRESENTS: That MONROE COUNTY, a Body
Corporate and Politic, and a Political Subdivision or the State
or Florida, hereinafter referred to simply as COUNTY, through its
Board of County Commissioners, which term shall include their
successors and assigns,
AND
KEMP & ROSASCO, Certified P~blic Accountants, having its
principal place of business at #12 Luani Plaza, 1438 Kennedy
Drive, Key West, Florida 33040, P. O. Box 309, Key West, Florida
33040, and doing business or authorized to do business in the
State of Florida, hereinafter referred to simply as AUDITOR.
WIT~ESSETH, that, for and in consideration of the ffiutual
terms and conditions, proTIlises, covenants and payments hereinar-
ter 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 cbjectives and
intentions of the respective parties herein, the following
statements, representations and explanations shall be accepted as
predicates for the undertakings and corrmitments included within
the provisions which follow and may be relied upon by the
parties' essential elements of the mutual considerations UDon
which this Agreement is based.
1.1 Section 11.45 of the Florida Statutes and Section
10.800 or the rules of the Auditor General of t~e State of
Florida, which are not incorporated herein by rererence, require
tha~ the COUNTY shall provide annually for a financial audit of
the acco~nts and finances of the COUNTY.
1.2 Monroe County, pursuant to Florida Statute 11.45 when
hiring consultanLs, undertook a selection and negotiation process
as required by Florida Statutes in seeking a firm to perform the
required audit.
1.2.1 The Audit Selection Co~mittee to ~vhich this
responsibility was delegated selected four (4) qualified firms
and made its reco~~endation to the Board of County Cowmissioners
on
, 1984.
1.2.2 On , 1984, the Board of
County Cowmissioners voted to hire the firm of Kemp & Rosasco 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 or Florida, provided that the firm could agree upon the
~errns of a contract to be prepared by the Monroe County Attor-
ney's Office.
ARTICLE 2
DEFINITIONS
2.1 COUNTY -- Monroe County, a body politic and a poliLical
subdivision of the State of Florida.
2.2 AUDITOR -- Kemp & Rosasco, Certified Public Accoun-
tants.
2.3 FINANCIAL AUDIT -- An examination of the financial
statements in order to express an opinion of the fairness with
which Lhey 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.
2.4 FINANCIAL AUDIT REPORT REQUIRED BY STATUTES -- The
financial audit report, as required by F.S. 11.45 and Section
2
10.800 of the Rules of the Auditor General, shall consist of the
f 0 llov~'ing :
2.4.1
AUDITOR'S REPORT ON EXAHINATION 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
exp~ess 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 reco~ds presented in conformity with
the fund and/or account group classifications as required for
compliance with Section 10.800 of the Auditor General.
2.4.3 AUDITOR'S LETTER OF COMtfENTS AND RECO~1ENDA-
TIONS -- A letter to the COUNTY containing various comments and
recoITmendations 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 Constitutional Officers.
2.4 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 Cornrnissioners.
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ARTICLE 3
FINANCIAL AUDIT SCHEDULE
3.1 FISCAL YEAR ENDING SEPTEMBER 30, 1984. The Financial
Audit for the fiscal year ended September 30, 1984 shall be
completed and final report as defined in Article 2.4 be submitted
on or before Harch 31, 1985. And on or before March 31 of each
succeeding year for the term of this contract.
ARTICLE 4
SCOPE OF AUDIT
4.1 FUNDS AND ACCOUNT GROUPS. The financial statement
shall be prepared in conformance with the primary funds and
accounts groups as described in CJ...AFR, as amended by Statement 1
relating thereto, with supplemental schedules as required for
compliance ~vith 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 finan-
cial reporting and audit opinion purposes:
General fund
Special revenue funds
Debt service funds
Enterprise funds
Intergovernmental service funds
Special assessmenL funds
General fixed asset group of accounts
General long-term debt group of accounts
Translator fund
Tourist Development Council fund
Capital Projects Fund
Audit of the 1981 Improvement Bond account and
related general long-term debt and service
account
Monroe County Group Insurance Self-insurance
fund
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4.1.2
SUPPLEMENTAL FINANCIAL REPRESENTATIO~S. Supple-
mental to the above funds and account groups are the financial
representations of the following entities and/or Constitutional
Officers:
Monroe County Board of County Cowmissioners
Supervisor of Elections of Monroe County
Monroe County Clerk of the Circuit Court
Clerk ex-officio of the Board of County
Co~~issioners
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. Special reports shall be prepared as
required by, and in accordance with, bond inde~tures existing at
the date of this contract as follows:
a.) Federal Revenue Sharing
b.) Card Sound Bridge Revenue Sharing
c.) 1965 Certificates of Indebtedness
d.) r1SD $8,000,000 Improvement Bonds Series 1980
e.) Attachment P to Circular No. A-102 of the
Office of Management and Budget.
4.3 GENERAL AUDIT CONDITIONS
4.3.1
The AUDITORS will conduct pre-audit conferences
with the Constitutional Officers of Monroe County concerning the
ensuing auditing program, prior to cowmencement of their field
work connected with each annual audit.
4.3.2
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
r~NAGEMENT LETTER which is Section 4.4 of this contract.
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4.4 }i~NAGEMENT LETTER
4. L:.. 1
A tentative Mdnagement Letter and preliminary
financial audit report shall be delivered to the COUNTY and each
County Agency no later than Marc:l 1, 1985 for fiscal year ending
September 30, 1984. And such letter on each of the next succeed-
ing audit years to be delivered on or before MaTch 15 of said
year s .
4.4.2
A final financial audit report shall be submit-
ted in accordance with Article 3 hereof.
4.5 COMPLIANCE LETTER. In addition to the Management
Letter, and in the same manner, the AUDITOR shall prepare and
submit to the Board of County COInmissioners of Monroe County a
letter regarding the COUNTY'S co@pliance with the terms of its
various bond issues existing at the date of this contract.
4.6 AVAILABILITY OF RECORDS. It is further contemplated
that records relating to the audit for each fiscal year conll~enc-
ing on September 30, 1984 shall be available at the conclusion of
each fiscal year or no later than January 1, 1985 and January 1
or each succeeding year during ~he term of the contract.
4.7 AUDIT STANDARDS. Each audit shall be done in conformi-
ty with generally accepted auditing standards as promulgated
through the American Institute of Certiried Public Accountants
(AICPA) Industry Audit Guide, Audits for State and Local Govern-
Qental Units, AICPA standards and procedures, and, excluding the
review or economy and efficiency of operations and program
results, standards and procedures set forth ir:he publication
Standards for Audit of Governmental Organizations, Programs,
Activities and Functions, COTI~troller General of the United
States. Requirements of Federal and State agreements and stat-
utory audit requirement will be conformed with as each may b2
applicable.
L, .8 COOPERATION WITH AUDITOR GENERAL AND CONSULTING FIRNS.
Where applicable, Kemp & Rosasco, 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
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consultin~ firms under contract to Monroe County and other County
Agencies.
4.9 IRREGULARITIES. Should irregularities or other unfore-
seeable 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 unroreseen conditions or irregularities, and why the addi-
tional fees are necessary. Whether a time extension or addition-
al fees are granted to AUDITOR is at the sole discretion of
COUNTY.
4.10 ILLEGAL ACTS. The AUDITOR is aware that illegal acts
may be discovered curing 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 iITmediately disclose
the discovery of any and all illegal acts to the Board of County
Commissioners.
4.11 STANDARD 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.
4.12 RESTRICTION. The AUDITORS are hereby prohibited from
providing routine and ordinary bookkeeping and/or accounting
services for the Board of County Commissioners or any Constitu-
tional Officer during the term of this contract and will perform
the services only as is prescribed in this contract.
ARTICLE 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
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Derform such additional 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 manage-
ment 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 Kemp & Rosasco 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 ~l~XlMUM FEES FOR FISCAL YEARS ENDED SEPTEMBER 30, 1984
AND SEPTEMBER 30, 1985 AND 1986. AUDITOR has exercised its best
efforts in attempting to estimate the ti~e 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
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sum of One. Hundred Fifty-seven Thousand Five Hundred Dollars
($157,500.00) for the next three (3) succeeding fiscal years it
is agreed that the successful bidding party, Kemp & Rosasco,
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 &
Rosasco on monthly billings therefore. It is agreed that the
contemplated amounts to be paid during the next three (3) fiscal
years shall be as follows:
FISCAL YEAR ENDINGS:
September 30, 1984 $ 50,000.00
September 30, 1985 52,500.00
September 30, 1986 55,000.00
Total for three ( ') , year period
..J)
(bid c,"s accepted) C: 157,500.00
y
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 Lhe AUDITOR, whether
under this Agreement or for extra work requested by the Board of
County Cowmissioners.
Partner In charge $ 75.00 per hour
Hanager $ 60.00 per hour
Senior Accountant S 45.00 per hour
Staff Accountant $ 30.00 per hour
Clerical $ 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 conLract.
These billings shall reflect the total hours 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.
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The Statement shall show 2 summary of fees and expenses with
accrual of the total and credits for portions paid perviously.
Each statement shall shov7 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.
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
ror which AUDITOR expects to be reimbursed. Such books and
records will be available at all reasonable times for examination
and audit by COUNTY.
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 the AUDITOR, EXCEPT BY THE
EXPLICIT DIRECTION OF THE County Commission of Monroe County, it
being understood, however, that the persons mentioned in para-
graph 7.2, who will undertake the actual work under this contract
are to be excluded from this provision. 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 v7ith 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
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pertain to "Conflicts of Interest" and "EmploYTIent Discrimir..a-
tiO~-in .
8.3 TERMINATION. This contract can be terminated only for
cause.
8.4 REPRESENTATIVES OF COUNTY. The COUNTY and each County
Agency shall designate a representative through whom all co~~u-
nications pertaining to the day-to-way conduct of the audit shall
be addressed and shall notify AUDITORS accordingly. Such indi-
viduals 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 represen-
tative of the AUDITOR to whom matters involving the conduct of
~he audit shall be addressed.
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 not
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
effective 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 vJhich shall be deeDed an original.
IN WITNESS WHEREOF, the parties hereto have made and execut-
ed this Agreement on the respective dates under each signature:
MONROE COUNTY through its BOARD OF COUNTY COMMISSIONERS, signing
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. .
by and through its ChaiTman, ac:.tio.orized to execute sam,::: by Board
action or~ the
day of
, 1984,
and KEl1P & ROSASCO, Certified Public Accountants.
COUNTY
MONROE COUNTY, through its
BOARD OF COUNTY COM}IISSIONERS
By
Mayor/Chairman
(Seal)
Attest:
Clerk
day of , 1984
This document prepared for
Monroe County, Florida
by LUCIEN C. PROBY, JR.
County Attorney
310 Fleming Street
Key West, Florida 33C40
( 305) 294 - 4641 ex t. 470
By
Lucien C. Proby, Jr.
County Attorney
AUDITOR
\HTNESS:
KEMP & ROSASCO, Certified
Public Accountants
By
day of
1984
P. oPf.'O\/ED AS 70 FO:.:5
/1,VD LEGAL SUFFi';fE/','CY.
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