Resolution 195-1981
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RESOLUTION NO, 195- 1981
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RESOLUTION AUTHORIZING THE CHAIRMAN OF THE BOARD
OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA,
TO EXECUTE AND AGREEMENT BY AND BETWEEN THE BOARD OF
COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA, AND
ORVIS M, KEMP, CPA, FOR AN AUDIT OF COUNTY RECORDS
COMMENCING JULY 1, 1981 AND TO BE FOR THE NEXT CON-
SECUTIVE THREE YEARS TO TERMINATE AT THE CONCLUSION
OF FISCAL YEAR 1983,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA, as follows:
That the Chairman of the Board of County Commissioners of
Monroe County, Florida lS hereby authorized to execute an Agreement
by and between the Board of County Commissioners of Monroe County,
Florida, and Orvis M, Kemp, CPA, a copy of same being attached here-
to, for an Audit of County records commencing July 1, 1981 and to
be for the next consecutive three years to terminate at the conclusion
of fiscal year 1983,
Passed and adopted by the Board of County Commissioners of
Monroe County, Florida at a regular meeting held on 16th day of
J un e, A, D, 1 98 1.
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By ~ AtL;;: -O.A:/
airman tr
(SEAL)
Attest:
RALPH W vq~"~T!' CU"R!l
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d . ;"'~'W>J I.). .A.,,,,'U v', Iv. (
, Clerk
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APPJi'OVED
AMefJ..~ . A$ TO FOIl""
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A G R E E MEN T
Between
MONROE COUNTY
and
ORVIS M. KEMP, CPA
PROVIDING FOR AN AUDIT OF COUNTY RECORDS
CO~~tENCING JULY 1, 1981 AND TO BE FOR THE
NEXT CONSECUTIVE THREE YEARS TO TERMINATE
AT THE CONCLUSION OF FISCAL YEAR 1983.
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A G R E E MEN T
Between
MONROE COUNTY
and
ORVIS M. KEMP, CPA
rROVIDI~G FOR AN AUDIT OF COUNTY RECORDS
CO~~IENCING JULY 1, 1981 AND TO BE FOR THE
NEXT CONSECUTIVE THREE YEARS TO TERMINATE
AT THE CONCLUSION OF THE FISCAL YEAR 1983.
I\\OW 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
O~V!S M. KEMP, Certified Public Accoutant, having its principal
place of business at 61SA United Street, Key West, Florida, P.O.
Box 309, Key West, Florida, and doing business or authorized to
do business in the State of Florida, hereinafter referred to simply
as AUDITOR.
WIT N E SSE T II, 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, representa-
tions 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.
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1.1
Section 11.45 of the Florida Statutes and Section 10.800 of
thc ru1cs of the Auditor General of the State of Florida,
which are incorporated herein by reference, require that the
COUNTY shall providc annually for a financial audit of the
accounts and finances of the COUNTY.
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Monroe County, pursuant to Florida Statute 11.45 when hiring
consultants, undcrtook a selection and negotiation process as
requircd by Florida Statute in seeking a firm to perform the
rcquircd audit.
1 .2. 1
The Awl it Se 1 ec t ion Commi t tee to which this
Responsibility was delegated selected four (4)
qualified firms and made its recommendation to
the Board of County Commissioners of June 2, 1981.
1. 2.2
On June 2, 1981, the Board of County Commissioners
voted to hire the firm of Orvis M. Kemp 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.
ARTICLE 2
DEFINITIONS
2.1 COUNTY
Monroe County, a body politic and a political subdivision of
thc State of Florida.
2.2 AUDITOR
Orvis M. Kemp, Certified Public Accountant,
2.3 FINANCIAL AUDIT
An examination of the finacial 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 FI:\A:\CIAL AUDIT REPORT REQUIRED BY STATUTES
The fin~ncial ~1U(lit report, as required by F.S. 11.45 and
Secticn 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.) n statement of the scope of the audit;
b.) explanatory comments (if any) concerning
exceptions by the auditor as to application of
cither generally accepted auditing standards or
generally accepted accounting principles or the
consistency of application of such principles;
c.) thc 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 qualifica-
tion or disclaimer of opinion.
2.4.2
FI~A~CIAL STATEMENTS
A bnlnnce sheet, statement of revenues and expendi-
turcs, or other statements of presentation of
finnncial data, including accompanying notes, derived
from the accounting records presented in conformity
with the fund and/or account- group classifications as
rcquircd 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 rccommendations 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,
pertniTlinl!, to their individual responsibilities.
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2.5 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 hy the Board of County Commissioners as extra work
which would involve exclusively the use of the AUDITOR'S
auditing ~t~ff. 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, 1981
The Financial Audit for the fiscal year ended September 30,
1981 shall be completed and final report as defined in Article
2,4 be submitted on or before March 31, 1982, And on or
before March 31 of each succeding year for the term of this
contract.
ARTICLE 4
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
schedules 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 qnd by Statement 1.
4.1.1
PRI~~RY 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
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fntcrgovernmental service funds
Special assessment funds
(~ct1CC11 :=ixed asset grou-p of accounts
(;cneral long-term debt group of accounts
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
\!oT1.Toe County Clerk of the Circuit Court
Clerk ex-officio of the Board of Courty
Commissioners
Monroe County Tax Collector
Monroe County Property Appraiser
~~onroe 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.Z SPECIAL REPORTS
Special reports shall be prepared as required by, and 1n
accordance with, bond indentures 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) MSD $8,000,000 Inprovement Bonds Series 1980
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4. 3 ~[ANAGEHENT LETTER
4.3. 1
A tentative Management letter and preliminary
Fin:mc 1 a 1 audi t report shall be delivered to the
County and each County agency no later than March 1,
1982 for fiscal year ending September 30, 1981.
And such letter on each of the next succeeding audit
years to be delivered on or before March 15 of said
years.
4.3.2
A final financial audit report shall be submitted 1n
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 further contemplated that records relating to the audit
for each fiscal year commencing on September 30, 1981 shall
be available at the conclusion of each fiscal year or no later
than January 1, 1981 and January 1 of each succeeding year
during the term of the contract,
4.6 AUDIT STANDARDS
Each audit shall bc Jane in conformity with generally accepted
auditing standards as promulgated through the American
Institutc of Certified Public Accountants (AICPA) Industry
Audit Guide, Audits for State and Local Governmental Units,
AICPA standards and procedures, and, excluding 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 the United
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, Orvis M. Kemp, as the County's principal
auditors shaJl coordinate their work and cooperate with the
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~uditor General of the State of FLorida, and with any and
all consulting firms under contract to Monroe County and
other 'County ~gnecies.
4.8 IRREGULARITIES
Should irregul~rities or other unforeseeable conditions be
encountered \vhich 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 unon to assure the discovery of illegal acts,
nor is the audit primarily or specifically designed to
disclosc dcfalcations and other illegal acts, though their
discovery may result. The AUDITOR agrees to immediately
disclose the discovcry of any and all illegal acts to the
Board of County Commissioners.
4.10 STANTARD 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.
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 perform such additional auditing services as
requested hy the County. This may include a review of the
efficiency and economy of operations, systems of internal
control, opcrating and management procedures and effectiveness
in achieving program results.
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The purchasc of specialized services or extra audit services
requi~ed 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 special-
ized 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
rccords 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 Orvis M. Kemp 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. Othcr requests for access to such documents will
bc considered by thc AUDITOR, but the AUDITOR has no obligation
to grant them.
ARTICLE 7
COMPENSATION
7,1 ~~XIMUM FEES FOR FISCAL YEARS ENDED SEPTEMBER 31, 1981 AND
SEPTEMBER 31, 1982 and 1983,
AUDITOR has exerciscd 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 One Hundred Twenty
Six Thousand Dollars ($126,000) for the next three (3) succeeding
fiscal years it is agreed that the successful bidding party,
Kemp, shall be paid in the following fashion; that in accordance
with the hourly rates hereinafter disclosed in 7.2 of the Agree-
ment such records shall be made available to and delivered to the
COUNTY from time to time and the COUNTY shall pay to Orvis M. Kemp
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:
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FISCAL YEAR ENDINGS:
Sentembcr 30, 1981
(I~cluding'~n cstim~tcJ
$1200 for out-of-Docket
expcnses
$38,000
September 30, 1982
(Including an estimated
$1400 for out-oF-pocket
expcnses)
$42,000
September 30, 1983
(Including an estimated
$1500 for out-of-pocket
expe:lses)
$46,000
Total for three (3) year period
(bid as accented)
$126,000
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 0]' for extra work requested by the Board of County
Commissioners.
Orvi s ~l. Kemn .................. $ 75
Peter Rosasc~, Jr. ............ $60
William O. Kemp.................$50
Assistant Accountants.......... .$30
Non-profession
(Report reproduction, etc.).. .$18
per hour
per hour
per hour
per hour
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 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 a summary of fees and expenses with
accrual of the total and credits for portions paid previously.
Each ~tatement shall show the proportion of the guaranteed
maximum payment that has been expended through privious billings.
7.4 PAYMENT
COU~TY agrees to promptly process each monthly statement
recieved 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 for which AUDITOR
expects to be reimbursed. Such books and records will be
avialable 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 paragraph 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 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
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to the work required under this Agreement, including specifically
those which pertain to "Conflicts of Interest" and "Employment
Discl'imination".
8 . 3 TER~II;..JA T ION
This Contract can be terminated only for cause.
8.4 REPRESENTATIVES OF COUNTY
The COUNTY and each County Agency shall designate a represent-
ative 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 ti~e,
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 invo~ving the conduct of the audit shall be addressed.
8.6 I~CORPO~\TION OF ALL PRIOR AGREEMENTS
This document incorporates and includes aJ1 prior negotiations,
correspondence, conversations, agreements, or understandings
applicable to the matters contained herein and the parties
3p~ee that there are no commitments, agreements, or understandings
c0TIcerning the subject matter of this Agreement that are not
contained in this document. Accordingly, it is agreed that
no deviation from the terms hereof shalJ be predicated upon
~~y prior reDresentations or agreements whether oral or written.
It is further agreed that no modification, amendment or alter-
ation 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 he executed in ten (10) counterparts, each
of which shall be deemed an original.
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1:\ \nT~ESS WHEREOF, the parties hereto have made and executed this
Agreement on the respective dates under each signature: MONROE
COlJ:\TY through its BOI\ 1\1) OF COUNTY COMMI SS lONERS, signing by and
throtH;h its Cha i rm:m, authorized to execute same by Board action
o~ the 16th day of June, 1981, and ORVIS M. KEMP.
COUNTY
ATTEST:
RAlPH W. WHITE, CLERK
't . <'Y\ r~ .0(.
MONROE COUNTY, through its BOARD
OF COUNTY COMMISSIONERS
BY ~L -Z .o1~
Mayor/Chairman
16th
d2,y of June
, 1981
This document prepared for
Monroe County, Florida
by LUCIEN C. PROBY, JR.
County Attorney
Monroe County Courthouse
500 Whitehead Street
Key West, Florida 33040
(305) 29 -7435
Lucien
County
BY
AUDITOR
WITNESS:
OR~.KA 4
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day of ~
,
, 1981
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