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Home My WebLink About2000 11 13 Consent C FY 2000 Auditor Selection Process COMMISSION AGENDA ITEM C CONSENT X INFORMATIONAL PUBLIC HEARING REGULAR November 13, 2000 Meeting MGR ~EPT :::L.::=\-- Authorization REQUEST: Finance Department Recommending the City Commission Provide Direction on the FY 2000 Auditor Selection Process. PURPOSE: The purpose ofthis item is to request the City Commission consider the two options available for obtaining an audit firm for the FY 2000 audit and authorize the City Manager to proceed with the option selected. CONSIDERATIONS: 1. Deloitte & Touche declined to renew our annual audit contract as provided for in the engagement letter. According to Ron Conrad, the lead practitioner for the public sector on behalf ofDeloitte & Touche, the firm is reducing its public service sector business. 2. The City must now find a new firm to perform the FY 2000 audit. Fieldwork must begin 2/1/01 in order to meet the 3/31/01 CAFR Certificate of Achievement deadline. 3. Ron Conrad has decided to leave the firm ofDeloitte & Touche and form a new firm called Conrad Assurance and Advisory Services LLC. Mr. Conrad desires to obtain the City of Winter Springs as an audit client. Mr. Conrad is very familiar with the City of Winter Springs having served as our auditor for four years. Mr. Conrad is willing to begin our audit on 2/01/01. 4. The City basically has two options - negotiate with Ron Conrad to perform the audit or go out for RFP for audit services. November 13, 2000 Consent Agenda Item C Page 2 5. The City has surveyed the local cities to get a feel for audit fees as follows: City Audit Firm Include FY 99 Audit Fee 1999 Population CAFR Prep? A1tamonte Harris, Cotherman, No $35,000 40,308 O'Keefe and Assoc Sanford Greene, Dycus & Co Yes $40,000 37,327 Winter Springs Deloitte & Touche Yes $39,800 29,220 Casselberry Harris, Cotherman, Yes $29,000 24,727 O'Keefe and Assoc Oviedo Holland & Reilly No $18,000 22,517 Longwood McDirmit, Davis, Puckett & No $10,800 14,052 Co. Maitland Harris, Cotherman, Yes $28,000 (for 2000 11,600 O'Keefe and Assoc audit) Lake Mary McDirmit, Davis, Puckett & No $16,000 10,222 Co. 6. The RFP process for audit services can be rather lengthy depending on the steps that are selected. The usual process entails the formation of an audit selection committee who ranks the written proposals against an agreed upon set of criteria and then selects the "short list" for oral presentations. Our estimated start date for fieldwork is 2/1/01. The length of the RFP process could potentially interfere with our scheduled start date. November 13, 2000 Consent Agenda Item C Page 3 RECOMMENDATION: It is recommended that the City Commission: . Authorize the City Manager to contract with Conrad Assurance and Advisory Services LLC for the FY 00 audit within a contract range of $28,000 to $32,000. This contract will include CAFR preparation for the FY 00 audit due to the timing of the computer conversion. . Direct staff to go out for RFP's next summer for the FY 01 audit. ATTACHMENTS: 1. Deloitte & Touch's cancellation letter 2. Conrad Assurance and Advisory Services LLC introduction letter COMMISSION ACTION: Deloine & Touche LLP Suite 1800 200 South Orange Avenue Orlando, Florida 32801 Certified Public Accountants Tel: (407) 2468200 Fax: (407) 422 0936 www.us.deloilte.com 0;7:"'. ~~ ..~~lfW1RlD) .' . . P' 1. ,.",_\,,e ". OCT I 8 2000. Deloitte & Touche ~ITY OF WINTER SPRINGS City Manager October 16, 2000 Mr. Ron McLemore City rAanager City of Winter Springs 1126 East State Road 434 Winter Springs, Florida 32708 Dear Mr. McLemore: Dcloitte & Touche has appreciated the opportunity to serve the City of Winter Springs over the past four years, We trust that you have been pleased with our efforts and the quality of our services. As much as we have enjoyed our working relationship, Deloitte & Touche has made a business decision to respectfully decline exercising the annual renewal option included in our engagement contract. I wish to extend my appreciation to you, your staff, and the City Commission for the excellent working relationship we have enjoyed during the past four years, Ron Conrad, our lead practitioner for the public sector and for the City of Winter Springs, will continue to serve the public sector in a capacity separate from Deloitte & Touche, We strongly suggest you consider Ron and his firm for future services. \.!prv trllJ" VAl\T'<: t " -' . - .~ - J ~.~;. - ..., , (/i/VW6~-----~ Michael L. Harding Partner - Assurance and Advisory Services cc: Mayor Paul p, Partyka Vice-Mayor Cindy Gennell Commissioner Robert S. Miller Commissioner Michael S. Blake Commissioner Edward Martinez, Jr. Commissioner David McLeod Oeloitte Touche Tohmatsu ~ . j .. Conrad Assurance and Advisory Services LLC 7900 South Park Place Orlando. Florida 32819 ~rgaNlEij OCT 1 9 2000 October 17, 2000 c.. ,- :" 'RINGS Mr. Ronald W. McLemore '-'....'j l'~'''il.C.~.;:;r City Manager City of Winter Springs 1126 East State Road 434 Winter Springs. Florida 32708 Dear Mr. McLemore On beh;;:!f ~f De!oiUE: & Touche, I have been serving as the lead independent auditor for the City of Winter Springs for the past four years, During this time, I have developed a sound knowledge of the City's operations and unique issues. This knowledge has been complemented by the knowledge and experience I have attained during twenty years of practicing public accounting, including a decade as a national resource, author and lector on public sector matters and as the lead public sector professional for Deloitte & Touche in Central Florida. In light of the recent Deloitte & Touche decision to reduce local public sector services and cease services to the' City, I will be leaving the Firm to work with a separate Firm of professionals dedicated to public sector services. I am excited about the level of service we will be able to provide, For the City of Winter Springs, this means an upgrade of professional experience to include much more extensive involvement on my part, Since year end is already behind us and your finance department staff is relatively new, it is important to utilize my familiarity and cumulative experience with the City to ensure quality work is performed in an expeditious manner, Upon City approval, planning activities will promptly begin with your finance department staff. Subsequently, I will work with your staff to prepare for the forthcoming accounting and reporting requirements addressed in my last presentation to the City Commission. The enhanced experience level and assistance regarding forthcoming accounting and reporting requirements will be at no cost to the City. Rather, I will continue the fee arrangement that the City Commission has already approved for Deloitte & Touche, which remains below the cost of services provided five years ago. I would be pleased to provide an engagement letter, outlining these services gnd fee arra"ge~er.ts, up0n notification to do S0. Sincerely, ~4.~ Ronald A. Conrad Principal-Conrad Assurance and Advisory Services LLC cc: MayorPaulP, Partyka Vice-Mayor Cindy Gennell Commissioner Robert S. Miller Commissioner Michael S. Blake Commissioner Edward Martinez, Jr, Commissioner David McLeod