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HomeMy WebLinkAbout2004 01 12 Regular 507 COMMISSION AGENDA ITEM 507 CONSENT INFORMATIONAL PUBLIC HEARING REGULAR X Meeting ~R~ /DEFT Firiance Authorization January 12, 2004 REQUEST: The Commission: . authorize the formation of a 3 member Audit Selection Committee illcludillg selectioll of a City Commissioller, . authorization for the City Manager to issue an RFP for Audit Services in compliance with the Competitive Auditor Selection Procedures set forth in Florida Statutes Section 11.45(3)(a) 6 and 7 (Competitive Negotiations Act), . and authorization for the City Manager to negotiate a contract for Audit Services for review and approval by the Commission. PURPOSE: To authorize the City Manager to form an Audit Selection Committee, issue an RFP for Audit Services and negotiate a contract for review and approval by the Commission. CONSIDERATIONS: . Section 4.12 of the City of Winter Springs Charter requires that the City designate an accounting firm annually or for a period not exceeding three years provided that the designation for any particular fiscal year shall be made no later than six months after the beginning of the fiscal year. . The City must designate an accounting firm by March 31, 2004 for the FY 04 audit. . Pursuant to Section 11.45(3)( a) 6, Florida Statutes, the governing body of a municipality, special district, or charter school must establish an "auditor selection committee" and "competitive auditor selection procedures". FUNDING: An audit fee of$35,000 is currently budgeted in the General Fund. RECOMMENDATION: The Finance Department recommends the: 1. Formation of a 3 member Audit Selection Committee comprised of the City Manager, a City Commissioner (selected by the City Commission) and the City Controller. 2. Issuance of an RFP. 3. City Manager negotiate a contract, subject to Commission approval, for Audit Services based on Audit Selection Committee recommendation. IMPLEMENT ATION: I Monday, January 12, 2004 (Comm mtg) City Controller gain Commission Authorization for RFP and City Commission select a City Commissioner to serve on the Audit Selection Committee. Tuesday, January 13,2004 City Controller arrange for general ad in paper, place RFP on Demand Star, and send out RFP's to those firms currently doing audits for the local cities in Seminole County. Friday, February 13, 2004 Proposals due to City from audit firms. Week of February 16, 2004 Committee members independently review proposals and prepare rankings. Monday, February 23, 2004 (Comm mtg day) Committee members come together to review the results of the members independent review of the proposals, and selects five firms to make oral presentations to the committee. Tuesday, February 24, 2004 City Controller schedule oral presentations. Monday, March 8, 2004 (Comm mtg day) Auditors give oral presentations to Committee members. Monday, March 8, 2004 (Comm mtg day) Committee selects and ranks three of the five firms that made orals presentations to negotiate with. Tuesday, March 9,2004 City Manager negotiate including fee with the #1 ranked firm first. Ifunable to reach agreement, negotiations with the #1 ranked firm are terminated and negotiations with the #2 firm commence and so forth. If negotiations fail with the first 3 firms, the committee is free to begin negotiations with the remaining firms in rankinf! order. Monday, March 22, 2004 (Comm mtg ) City Manager recommend to the Commission and gain approval to sign contract for audit services. ATTACHMENTS: Florida Statute Section 11.45(3)( a) 6 and 7 Section 4.12 ofthe City Charter "Independent Audits" Draft RFP COMMISSION ACTION: f: II I' I' , :!I _I i : 'I ' , ~ i !' i ' ")1' 'I' i ,~ : i I I' ; "I " :\11,1,' 'i," "It 'Iii: ,:, I : ~' lj, 'I '/1 ,,'11'1" " t'l. 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I '1,/ I ' , ",I: 1/1"1 II' ,I ~",,'~I'I", '_ .,~' ill Ch.11 LEGISLATIVE ORGANIZATION, PROCEDURES, AND STAFFING F.s. 200J ~ Auditor General nor any employee of the Auditor Gen- eral shall become a candidate for election to public office unless she or he shall first resign from office or employment History.-s. 3, ch. 67-470; s. 3, ch. 69-82; s. I, ch. 86-217; s, 1, ch. 91-162; s. 1, ch. 94.322; s, 1308, ch. 95-147; s, 2, ch. 95-395; s. 24, ch. 96.318; s. 1, ch. 97.2; s. 71, ch, 97-190; s. 1, ch. 99-4; s. 2, ch. 99-333. Note.-Former s. 11.183. 11.45 Definitions; duties; audits; reports.- (1) As used in this section, the term: (a) "County agency," for the exclusive purposes of this section, means a board of county commissioners or other legislative and governing body of a county, however styled, including that of a consolidated or met- ropolitan government, a clerk of the circuit court, a sep- arate or. ex officio clerk of the county court, a sheriff, a property appraiser, a tax collector, a supervisor of elec- tions, or any other officer in whom any portion of the fis- cal duties of the above are under law separately placed. Each county agency is a local governmental entity for purposes of subparagraph (3)(a)5. (b) "Financial audit" means an examination of financial statements in order to express an opinion on the fairness with which they present financial position, results of operations, and changes in financial position in conformity with generally accepted accounting prin- ciples and an examination to determine whether opera- tions are properly conducted in accordance with legal and regulatory requirements. Financial audits must be conducted in accordance with generally accepted auditing standards and governmental auditing stand- ards as adopted by the Board of Accountancy. (c) "Governmental entity" means a state agency, a county agency, or any other entity, however styled, that independently exercises any type of state or local gov- ernmental function. (d) "local governmental entity" means a county agency, municipality, or special district as defined in s. 189.403, but does not include any housing authority established under chapter 421. (e) "Management letter" means a statement of the auditor's comments and recommendations. (f) "Operational audit" means a financial-related audit whose purpose is to evaluate management's per- formance in administering assigned responsibilities in accordance with applicable laws, administrative rules, and other guidelines and to determine the extent to which the internal control, as designed and placed in operation, promotes and encourages the achievement of management's control objectives in the categories of compliance, economic and efficient operations, reliabil- ity of financial records and reports, and safeguarding of assets. (g) "Performance audit" means an examination of a program, activity, or function of a governmental entity, conducted in accordance with applicable government auditing standards or auditing and evaluation stand- ards of other appropriate authoritative bodies. The term includes an examination of issues related to: 1. Economy, efficiency, or effectiveness of the program. 2. Structure or design of the program to accom- plish its goals and objectives. 3. Adequacy of the program to meet the needs identified by the Legislature or governing body. 4. Alternative methods of providing program ser. vices or products. 5. Goals, objectives, and performance measures used by the agency to monitor and report progrCllll accomplishments. 6. The accuracy or adequacy of public documen~ reports, or requests prepared under the program ~ state agencies. 7. Compliance of the program with appropriate policies, rules, or laws. 8. Any other issues related to governmental en~ ties as directed by the Legislative Auditing Committee, (h) "Political subdivision" means a separate agenCj or unit of local government created or established ~ law and includes, but is not limited to, the following and the officers thereof: authority, board, branch, bUrea~ city, commission, consolidated government, coun~ department, district, institution, metropolitan gover~ ment, municipality, office, officer, public Corporatio~ town, or village. (i) "State agency" means a separate agency Of unit of state government created or established by law and includes, but is not limited to, the following and the officers thereof: authority, board, branch, bureau, com- mission, department, division, institution, office, officer, or public corporation, as the case may be, except any such agency or unit other than the Florida Public Ser. vice Commission within the legislative branch of stale government. . (2) The Auditor General shall make financial audits and performance audits of public records and perform related duties as prescribed by law or concurrent reso- lution of the Legislature. The Auditor General shall per. form his or her duties independently but under the gen. eral policies established by the Legislative Auditini' Committee.! (3)(a)1. The Auditor General shall annually make! financial audits of the accounts and records of all stalel agencies, as defined in this section, of all district school, boards in counties with populations of fewer than: 125,000, according to the most recent federal decerrl nial statewide census, and of all district boards of trusl'i ees of community colleges. The Auditor General shall! at least every other year, make operational audits of the I accounts and records of all state agencies, as defined! . in this section. The Auditor General shall, at least once: every 3 years, make financial audits of the accou~tsl; and records of all district school boards in counties with populations of 125,000 or more. For each of the 2ye~rs' that the Auditor General does not make the financl~ audit, each district school board shall contract for ani independent certified public accountant to pe~orm aj financial audit as defined in paragraph (1 )(b). ThiS see) tion does not limit the Auditor General's discretionaryi authority to conduct performance audits of these 901'-1 ernmental entities as authorized in subparagraph 3, Ai district school board may select an independent certl'i. fied public accountant to perform a financial audlt;1 defined in paragraph (1 )(b) notwithstanding the no ,: cation provisions of this section. In addition, a distnc(, school board may employ an internal auditor to perfonrt I jl 206 F.S.21 :.---- ongoir a schc schoo shall, indepe school docurr results auditin sis of b tingenc 2, 228.05 accour the enl publice The in, selecte charter to the ( tion, ar must bE cial auc his or h Legislal charter 3, financia and rec- ant to Ie must bl General Commit concum way aut annual I complet year. If requiren board, U pursuan 4. 1 ernment General audits of audit of , Analysis priate, st accompli Such altE if approp ernment. 5, If board or fied that; formed subparac nues or ~ Special d more thai each dist financial pleted, wi S.20tll ~ F S. 2000 :-:-- LEGISLATIVE ORGANIZATION, PROCEDURES, AND STAFFING Ch.11 needs . ongoing financial verification of the financial records of a school district, who must report directly to the district school board or its designee. The Auditor General shall, at a minimum, provide to the successor independent certified public accountant of a district school board the prior year's working papers, including documentation of planning, internal control, audit results, and other matters of continuing accounting and auditing significance, such as the working paper analy- sis of balance sheet accounts and those relating to con- tingencies. 2, Each charter school established under s. 228.056 shall have an annual financial audit of its accounts and records completed within 12 months after the end of its fiscal year by an independent certified public accountant retained by it and paid from its funds. The independent certified public accountant who is selected to perform an annual financial audit of the charter school shall provide a copy of the audit report to the district school board, the Department of Educa- tion, and the Auditor General. A management letter must be prepared and included as a part of each finan- cial audit report. The Auditor General may, pursuant to his or her own authority or at the direction of the Joint Legislative Auditing Committee, conduct an audit of a charter school. 3. The Auditor General may at any time make financial audits and performance audits of the accounts and records of all governmental entities created pursu- ant to law. The audits referred to in this subparagraph must be made whenever determined by the Auditor General, whenever directed by the Legislative Auditing Committee, or whenever otherwise required by law or concurrent resolution. A district school board, express- way authority, or bridge authority may require that the annual financial audit of its accounts and records be completed within 12 months after the end of its fiscal year. If the Auditor General is unable to meet that requirement, the Auditor General shall notify the school board, the expressway authority, or the bridge authority pursuant to subparagraph 5. 4. The Office of Program Policy Analysis and Gov- ~mment Accountability within the Office of the Auditor e~eral shall maintain a schedule of performance audits of state programs. In conducting a performance ~Udlt o~ a state program, the Office of Program Policy ~alysls and Government Accountability, when appro- P ate, shall identify and comment upon alternatives for ~ccomplishing the goals of the program being audited. if ~Ch alte~natives may include funding techniques and, e ppropnate, must describe how other states or gov- r~mental units accomplish similar goals. bo~ d If by July 1 in any fiscal year a district school fied~h or lo?al g?vernmental entity has not been noti- form ~t a finanCial audit for that fiscal year will be per- Sub ~ by the Auditor General pursuant to nue~ ragraph 3., each municipality with either reve- SPecia~r expenditures of more than $100,000, each more th dlS~ICt with either revenues or expenditures of each di~n 50,000, and each county agency shall, and finanCial nct ~chool board may, require that an annual pleted w.aUdlt of its accounts and records be com- , Ithln 12 months after the end of its respective 1m ser. lasures . 'rogram ' Jments, ram ~ 'opnale[ tal en~r lmittee, '~ agency ;had ~, 'ingaril: bureau, coun~, govern- 'oratio~: , I ency IX, j by law andlhe lU, cOrn- , officer, :eptarrj, )lic SeI. of sta~ , al aud~ perlolil lOt res& hall per. thegelll Auditilll! lIy make all stall ;1 schOO ler thai .I decell ; oltoS ral sh~ litsofU-1 ; defin~! asto~; 3CCOU~ lties~ 32Y~ finand3 . ct fora;: erforJ1l' fhis sef : retio~. ese rfJ'. :~tJI' auort~1 he no;!' a diSwJi )pert~. fiscal year, by an independent certified public account- ant retained by it and paid from its public funds. An independent certified public accountant who is selected to perform an annual financial audit of a school district must report directly to the district school board or its designee. A management letter must be prepared and included as a part of each financial audit report. Each local government finance commission, board, or coun- cil, and each municipal power corporation, created as a separate legal or administrative entity by interlocal agreement under s. 163.01 (7), shall provide the Auditor General, within 12 months after the end of its fiscal year, with an annual financial audit report of its accounts and records and a written statement or expla- nation or rebuttal concerning the auditor's comments, including corrective action to be taken. The county audit shall be one document that includes a separate audit of each county agency. The county audit must include an audit of the deposits into and expenditures from the Public Records Modernization Trust Fund. The Auditor General shall tabulate the results of the audits of the Public Records Modemization Trust Fund and report a summary of the audits to the Legislature annually. 6. The governing body of a municipality; special district, or charter school must establish an auditor selection committee and competitive auditor selection procedures. The governing board may elect to use its own competitive auditor selection procedures or the procedures outlined in subparagraph 7. 7. The governing body of a noncharter county or district school board that retains a certified public accountant must establish an auditor selection commit- tee and select an independent certified public account- ant according to the following procedure: a. For each noncharter county, the auditor selec- tion committee. must consist of the county officers elected pursuant to s. 1 (d), Art. VIII of the State Consti- tution, and one member of the board of county commis- sioners or its designee. b. The committee shall publicly announce, in a uniform and consistent manner, each occasion when auditing services are required to be purchased. Public notice must include a general description of the audit and must indicate how interested certified public accountants can apply for consideration. c. The committee shall encourage firms engaged in the lawful practice. of public accounting who desire to provide professional services to submit annually a statement of qualifications and performance data. , d.' Any certified public accountant desiring to pro- vide auditing services must first be qualified pursuant to law. The committee shall make a finding that the firm or individual to be employed is fully qualified to render the required services. Among the factors to be considered in making this finding are the capabilities, adequacy of personnel, past record, and experience of the firm or individual. e, The committee shall adopt procedures for the evaluation of professional services, including, but not limited to, capabilities, adequacy of personnel, past record, experience, results of recent external quality control reviews, and such other factors as may be 207 ;! I: "I IIi Ill. . ':! ~ . F.S. 2000 ~ Ch.11 LEGISLATIVE ORGANIZATION, PROCEDURES, AND STAFFING determined by the committee to be applicable to its par- ticular requirements. 1. The public must not be excluded from the pro- ceedings under this subparagraph. g. The committee shall evaluate current state- ments of qualifications and performance data on file with the committee, together with those that may be submitted by other firms regarding the proposed audit, and shall conduct discussions with, and may require public presentations by, no fewer than three firms regarding their qualifications, approach to the audit, and ability to furnish the required services. , h.The committee shall select no fewer than three firms deemed to be the most highly qualified to perform the required services after considering such factors as the ability of professional personnel; past performance; willingness to meet time requirements; location; recent, current, and projected workloads of the firms; and the volume of work previously awarded to the firm by the agency, with the object of effecting an equitable distri- bution of contracts among qualified firms, provided such distribution does not violate the principle of selec- tion of the most highly qualified firms. If fewer than three firms desire to perform the services, the commit- tee shall recommend such firms as it determines to be qualified. . i. ' If the goveming board receives more than one - proposal for the same engagement, the board may rank, in order of preference, the firms to perform the engagement The firm ranked first may then negotiate a contract with the board giving, among other things, a basis of its fee for that engagement If the board is unable to negotiate a satisfactory contract with that firm, negotiations with that firm shall be formally termi- nated, and the board shall then undertake negotiations with the second-ranked firm. Failing accord with the . second-ranked firm, negotiations shall then be termi- nated with that firm 'and undertaken with the third- ranked firm. Negotiations with the other ranked firms shall be undertaken in the same manner. The board, in negotiating with firms, may reopen formal negotiations with anyone of the three top-ranked firms, but it may not negotiate with more than one firm at a time. The board shall,also negotiate on the scope and quality of services. In making such determination, the board shall conduct a detailed analysis of the cost of the profes- sional services required in addition to considering their scope and complexity. For contracts over $50,000, the board shall require the firm receiving the award to exe- cute a truth-in-negotiation certificate stating that the rates of compensation and other factual unit costs sup- porting the compensation are accurate, complete, and current at the time of contracting. Such certificate shall also contain a description and disclosure of any under- standing that places a limit on current or future years' audit contract fees, including any arrangements under which fixed limits on fees will not be subject to reconsid- eration if unexpected accounting or auditing issues are encountered. Such certificate shall also contain a description of any services rendered by the certified public accountant or firm of certified public accountants at rates or terms that are not customary. Any auditing service contract under which such a certificate is F.S required must contain a provision that the original con. tract price and any additions thereto shall be adjusted to exclude any significant sums by which the board determines the contract price was increased due to inaccurate or incomplete factual unit costs. All SUch contract adjustments shall be made within 1 year fOI. lowing the end of the contract. j. If the board is unable to negotiate a satisfactory contract with any of the selected firms, the committee shall select additional firms, and the board shall Con. tinue negotiations in accordance with this subsection until an agreement is reached. 8. At the conclusion of the audit field work, the independent certified public accountant shall discuss with the head of each local governmental entity or the chair's designee or with the chair of the district school board or the chair's designee, or with the chair of the board of the charter school or the chair's designee, as appropriate, all of the auditor's comments that will be included in the audit report. If the officer is not available to discuss the auditor's comments, their discussion is presumed when the comments are delivered in writing to his or her office. The auditor shall notify each memo ber of the governing body of a local governmental entity for which deteriorating financial conditions exist which may cause a condition described in S. 218.503(1) to occur if actions are not taken to address such condi. tions. 9. The officer's written statement of explanation or rebuttal concerning the auditor's comments, including corrective action to be taken, must be filed with the gov. erning body of the local governmental entity, district school board, or charter school within 30 days after the delivery of the financial audit report. 10. The Auditor General, in consultation with the Board of Accountancy, shall adopt rules for the form and conduct of all financial audits subject to this section and conducted by independent certified public accoun- tants. The Auditor General, in consultation with the Department of Education, shall develop a compliance supplement for the financial audit of a district scho~ board conducted by an independent certified public accountant. The rules for audits of local government~ entities and district school boards must include, but are not limited to, requirements for the reporting of informa- , tion necessary to carry out the purposes of the Local Government Financial Emergencies Act as stated ins 218.501. 11. Any local governmental entity or district schad board financial audit report required under subparagraph 5. or charter school financial audit repon required under subparagraph 2. and the officer's wri!- ten statement of explanation or rebuttal concerning the auditor's comments, including corrective action to ~ taken, must be submitted to the Auditor General w~hm 45 days after delivery of the audit report to the lo~ governmental entity, district school board, or chartef school, but no later than 12 months after the end oflhl fiscal year. If the Auditor General does not receive tl1e financial audit report within the prescribed period, he~ she must notify the Legislative Auditing Committee th the governmental.entity or charter school has not.co~ plied with this subparagraph. Following notifieatrond fail req he, Aftf gO\ jee1 gO\ sut a tric De! ing bor sue req era of I the tee, sha Oer ing tion b Oer triet reef Aff, 189 1: Boe sub Ger omi Ger afte doe noli' b, and aud con' or d gen in re mat enti! cial Ge~ loca reql afte, doe: shal aftel Gen or d gen, the' mittf c. tran: the I 208 ~ 4.08 WINTER SPRINGS CODE authorized by law or forfeiture of his office, or in the event no one is elected to the office of mayor or . commission member. (b) Forfeiture of office. A commissioner or mayor shall forfeit his office if he: (1) Lacks at any time during his term of office any qualifications prescribed by this Char- ter or by law; or (2) Knowingly and willfully violates any ex- press prohibition of this Charter; or (3) Is convicted of a felony; or (4) Fails to attend three (3) consecutive reg~ ular meetings of the commission without being duly excused by the commission. (c) Filling of vacancies. A vacancy in a commis- sion member's seat shall be filled until the next regular election to be held for the office of the commissioner from that seat by a majority vote of all its remaining members. Section 4.09. Judge of qualifications. The commission shall be the judge of the elec- tion and qualifications of its members and of the grounds of forfeiture of their office and for that purpose shall have power to subpoena witnesses, administer oaths and require production of evi- dence. A member charged with conduct constitut- ing grounds for forfeiture of his office shall be so notified by certified mail and shall be entitled to a public hearing on demand, and notice of such hearing shall be published in one or more news- papers of a general circulation in the city at least one week in advance of the hearing. Decisions made by the commission under this section shall be subject to review by the courts. Section 4.10. City clerk. (a) The city commission, after receiving a nom- ination from either the mayor or a commission member(s) shall, by a vote of not less than four (4) commission members, appoint an officer of the city who shall have the title of city clerk. The city clerk shall give notice of commission meetings to its members and the public, keep the journal ofits Supp. No.2 proceedings and perform such other duties as are provided by this Charter, by the commission or by law. (b) The city clerk may be removed by a vote of not less than four (4) commission members. Section 4.11. Investigations. The commission may make investigations into the affairs of the city and the conduct of any city department, office or agency and for this purpose may subpoena witnesses, administer oaths, take testimony and require the production of evidence. Any person who fails or refuses to obey a lawful order issued in the exercise of these powers by the commission shall be guilty of a misdemeanor and punishable by a fine of not more than five hun- dred dollars ($500.00) or by imprisonment for not more than ninety (90) days or both. Section 4.12. Independent audits. The commission shall provide for an indepen- dent audit of all city accounts and may provide for such more frequent audits as it deems necessary. Such audits shall be' made by a certified public accountant or firm of accountants who have no personal interest, direct or indirect in the fiscal affairs of the city government or any of its officers. The commission may designate such accountant or firm annually or for a period not exceeding three (3) years provided that the designation for any particular fiscal year shall be made no later than six (6) months after the beginning of such fiscal year. If the state makes such an audit the commission may accept it as satisfying the re- quirement of this section. Section 4.13. Procedure. (a) Meetings. The commission shall meet reg- ularly at least once every month at such times and places as the commission may prescribe by rule. Special meetings shall be held on the call of the mayor or three (3) or more members and whenever practicable, upon no less than twelve (12) hours' notice to each member. All meetings shall be public. 6 CITY OF WINTER SPRINGS, FLORIDA 1126 EAST STATE ROAD 434 WINTER SPRINGS, FLORIDA 32708-2799 Telephone (407) 327-1800 REQUEST FOR PROPOSAL. RFP # 006/04/JC . AUDIT SERVICES The City of Winter Springs, Florida invites Independent Certified Public Accountants, who are licensed to practice in the State of Florida, to submit proposals for the performance of an examination of Winter Spring's financial statements. The purpose of the examination is to express an opinion on the fairness with which the financial statements present the City's financial position, changes in financial position and cash flow and budgetary comparisons for major funds in conformity with generally accepted governmental accounting principles, and to determine whether operations were conducted in accordance with legal and regulatory requirements. A. General Information 1. The City will contract for the annual audit for fiscal years ending September 30, 2004, 2005 and 2006. 2. Winter Springs, Florida is a City Commission/City Manager form of municipal government. The City is primarily a retail, office and residential area with a population of 32,000. The City employs approximately 264 employees and administers a combined budget of $37,000,000. 3. Copies of the City's Annual Financial Report for fiscal year ended September 30, 2002, which included an unqualified audit opinion, will be made available on request, as well as the 2004 Annual Budget. 4. The City's accounting system is fully automated. The City's mainframe computer is run on a UNIX platform. All Finance Department personnel have connection via personal computers. General Ledger, Fixed Assets, Purchasing, Cash Receipts, and Utility Billing systems are fully automated. Budgets are initially recorded in the automated accounting system, and amendments and transfers are subsequently documented within the system. 5. Audits for the fiscal years ending September 30, 2000 - 2003 were performed by McDirmit Davis Puckett, Orlando, Florida. 6. The City has no internal audit department. Finance personnel working on the audit includes the City Controller, Management and Budget Analyst, Revenue Manager, Utility Billing Manager and two staff accountants. Finance personnel are committed to furnishing documents and preparing audit work schedules and being available to assist with the preparation of any additional information needed. Financial statements will be prepared by the audit firm. 7. The City is a recipient of various grants, none of which are anticipated to be a major program for the fiscal year ending September 30, 2004. 8. The entity to be audited includes the following fund types: General Fund Special Revenue Funds (17) Debt Service Funds (7) Capital Projects Funds (7) Enterprise Fund (3) The City has no component units. 9. The City has received the Government Finance Officers Associations Certificate of Achievement for Excellence in Financial Reporting for the fiscal years ending September 30,1997, 1998,2000,2001 and is awaiting response regarding 2002. 10. The City implemented GASB 34 for FY 2002. B. Performance Specifications: 1. To be eligible to qualify as an external auditor, the following minimum requirements must be met: a) The firm must be established as a legal entity and be licensed in the State of Florida. The principals of the firm must have performed continuous auditing services to local governments for a minimum of five (5) years. b) The firm must meet the independence and education requirements of the Government Auditing Standards issued by the Comptroller General of the United States. c) The firm must have no record of substandard audit work. d) The firm must be a member of the American Institute of Certified Public Accountants, the Florida Institute of Certified Public Accountants, and the Government Finance Officers Association. e) All individuals who will be working on the audit must have at least 24 hours of governmental accounting and auditing CPE. 2. The audit shall be performed in compliance with the following as they exist or as each may be subsequently amended: a) Generally Accepted Auditing Standards. b) Governmental Auditing Standards issued by the Comptroller General of the United States. c) Rules adopted by Auditor General for form and content of local governmental unit audits. d) Audits of State and Local Governmental Units (AICPA Audit Guide Revised). e) Single Audit Act of 1984 and OMB Circular A-133. 3. The audit shall be a financial audit as defined in Sec. 11.45(1 )(b), Florida Statutes. 4. The audit is to be conducted and the statements prepared in accordance with GASB 34, and the audit shall include a review and evaluation of the City's system of internal accounting controls. 5. The auditor shall submit, no later than fifteen (15) days after the end of field work, a draft of the management letter, which shall identify weaknesses observed in the system of internal accounting controls, assess their effect on the system and propose steps to eliminate such weaknesses. 6. Working papers are the property of the auditor and should be held locally for a period of five (5) years. Working papers will be available for examination or duplication without charge to authorized City personnel as well as representatives of the cognizant Federal Audit Agency, the General Accounting Office, the State of Florida Auditor General or the State Board of Accountancy. They will be made available for examination or duplication at a reasonable charge to subsequent auditors engaged by the City. 7. The auditor will agree to immediately notify the City if the Board of Accountancy or any other regulatory agency requests a review of the audit work papers concerning the City or any government client audited by the firm's local office. 2 8. The City will expect immediate compliance with any expanded scope definitions and will consider fee adjustment where significant change can be demonstrated which will materially affect what the City should have expected the auditor to accomplish at the time of fee determination. 9. The Auditor will assist the City in complying with changes in reporting requirements to remain in conformity with Generally Accepted Accounting Principles. 10. If the City issues debt during the contract period for which the official statement contains financial statements and the report of independent accounts, the firm shall be required to issue a "consent and citation of expertise" as auditor and any necessary "comfort letters" at a cost to be negotiated with the City. c. Instructions for Proposals: 1. Proposals, in not less than 5 copies, shall be mailed or delivered to: Attn: City Clerk City of Winter Springs 1126 East SR. 434 Winter Springs, FL 32708 2. Proposals must be received by the City not later than 5:00 p.m. on Friday, February 13, 2004, in order to be considered. 3. Proposals must be delivered in a sealed envelope or sealed box with the name of the proposer and RFP # 006/04/JC Audit Services clearly marked on the outside for easy identification. No facsimile or telegraphic proposal submissions will be accepted. 4. Cost of the preparation and submittal of proposals is an operational cost of the proposer, and the City of Winter Springs shall not be responsible for any such costs incurred. D. Information to be included in the Proposal: 1. Title Page - The proposer should identify the RFP number and subject, the name of the firm, local address, telephone number, name and title of contact person, and date of submission. 2. Table of Contents - Provide a clear identification of the material by section and by page number. 3. Letter of Transmittal - Should be brief, and introductory in nature. 4. A statement setting forth the proposer's understanding of the work to be done, a brief description of the audit procedures to be followed and major areas of emphasis, and a tentative schedule for performing the key phases of the audit. 5. An express agreement to meet or exceed Performance Specifications listed in Section B. List any exceptions taken to these specifications, 6. Description and history of the firm, including whether the firm is local, regional or national. 7. The location of the office from which the work is to be done, the number of personnel in that office who would be working on the audit and the relevant prior governmental auditing experience of the assigned office. Firm-wide experience may be submitted in addition to, but not in lieu of, the assigned office's or staff's experience. 8. An identification of the partners, managers and supervisors who will work on the audit, including staff from other than the local office if necessary for the audit. Note whether members of the proposed audit team are employees of the firm or 3 are contracted consultants. Also indicate persons authorized to represent and commit the firm, including business address and phone number. Resumes for each managerial and supervisory person to be assigned to the audit should be submitted and include the following information: a) Formal education. b) Supplemental education relative to governmental accounting and auditing. c) Experience in public accounting in general. d) Experience in private business or government. e) Experience with governmental units. f) Experience with preparation of GASB 34 statements. g) Experience and expertise in auditing computer systems. h) Membership in various national and state governmental accounting boards, committees, or associations (past and present). i) Professional recognition, such as Certified Public Accounting licenses, awards etc. It is understood that managerial, supervisory and audit staff may be changed for a variety of reasons. Replacements may be made at the discretion of the proposer, provided there is no compromise in qualifications or experience and replacements (new staff) are acceptable to the City. 9. A description of the office's experience in preparing GASB 34 financial statements and in providing assistance in obtaining the Certificate of Achievement. List those municipalities for whom you currently prepare or have prepared a CAFR in accordance with GASB 34, and those who received the Certificate of Achievement during your tenure as auditor. 10. A current listing of Florida municipalities for which the firm is providing or has provided auditing services, the scope of such service, and the time periods of such service. Please provide a contact person, address and phone number, as these clients may be contacted for references. 11. A description of the firm's approach to peer review and a copy of the most recent peer review report. Indicate whether that peer review included a review of local government client activities. 12. Firm promotional material may also be included as supplemental information; however, it will not be considered a substitute for the proposal. 13. Disclosure of any unresolved or pending regulatory disciplinary actions and/or litigation including negative declaration if applicable. NOTE THAT A FEE PROPOSAL IS NOT TO BE INCLUDED WITH THIS PROPOSAL. E. Evaluation Procedure: The City desires to award the contract to the most responsive and responsible proposer that demonstrates the ability to provide the highest quality of service at the best cost. To accomplish this goal, the city criteria for selection shall include, but not be limited to, the following criteria: Evaluation Criteria Points 1. The firm's specific municipal audit experience with 20 municipalities of comparable size. 2. Professional certification, education and experience of 20 personnel to be assiqned to the audit. 4 3. Understanding of the scope of services to be provided as 10 demonstrated by the stated audit approach. 4. Responses of references. 5 5. Past, current and projected work assignments of assigned 10 audit staff. 6. History of performing quality audits as demonstrated by 5 recent peer review report. 7. Willingness to meet the City's timeline (fieldwork start date 15 in November, CAFR issuance by end of January). 8. Location within 50 miles of the City of Winter Springs. 5 9. Overall presentation of proposal and oral presentation. 10 100 F. Selection Process: A three-member Auditor Selection Committee will consist of the City Manager, City Controller and a City' Commissioner. The Auditor Selection Committee will evaluate and rank proposals based on a weighted score point formula. The Committee will select a list of not less than five firms as finalists for oral presentations and interviews. After oral presentations and interviews with each of the five firms, the Committee will rank the finalists and undertake fee negotiations with the top ranking finalist. Should agreement not be reached, negotiations will begin with the remaining firms in ranking order. The Auditor Selection Committee will then present a recommendation to the City Commission on March 22, 2004. G. Terms and Conditions: 1. All responses shall become the property of the City of Winter Springs. 2. Proposals shall be prepared simply, providing straightforward responses to satisfy the requirements of this RFP. 3. Each firm shall examine all parts of this RFP and shall determine all matters relating to the interpretation of such documents. Only those firms that have received and responded to this RFP will be considered. Any changes to the RFP will be addressed by addenda to all firms who have received this RFP. 4. A response to this RFP does not constitute a bid; therefore, the City retains their right to contact any/all proposers after submittal in order to obtain supplemental information and/or clarification. 5. All questions for clarification or additional information should be directed to the City Clerk. No other City Staff, Board, Commission members, or contracted consultants shall be contacted. Such unauthorized contact shall be cause for disqualification. 6. The City reserves the right to accept or reject any and all submittals received, to waive irregularities and technicalities, and to request re-submission or to re- 5 advertise for all or any part of the RFP. The City shall be the sole judge of the proposal and the resulting negotiated agreement that is in the City's best interest, and the City's decision shall be final. H. Reauest for Additional Information: The proposer shall furnish such additional information as the City may reasonably require. This includes information, which indicates financial resources as well as ability to provide and maintain the system and/or services. The City reserves the right to make investigations of the qualifications of the proposer or any of its agents as it deems appropriate. I. Addendum and Amendment to Reauest for Proposals: If it becomes necessary to revise or amend any part of this Request for Proposal, the revision will be furnished by written Addendum to all prospective proposers who received a Request for Proposal. J. BillinQs and Payment: Progress payments not to exceed 80% of the total annual fee will be made on receipt of invoice from the proposer, in accordance with a mutually agreed schedule. Final payment will be made upon receipt and acceptance of final audit reports, opinion letters and management letter. K. On-Site Inspections: Proposers are welcome to inspect recent CAFRs and the current budget or make an on-site inspection of City facilities in connection with preparing proposals, providing that arrangements are made in advance with the City Clerk. L. Non-Collusion: By offering submission to the RFP, the proposer certifies the proposer has not divulged to, discussed or compared his/her proposal with other proposers or parties to this proposal whatsoever. M. Public Entitv Crimes: A person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a bid on a contract to provide any goods or services to a public entity, may not submit a bid on a contract with a public entity for the construction or repair of a public building or public work, may not submit bids on leases or real property to a public entity, may not be awarded or perform work as a contractor, supplier, subcontractor or consultant under a contract with any public entity, and may not transact business with any public entity in excess of the threshold amount provided in Section 287.017, for CATEGORY TWO, for a period of 36 months from the date of being placed on the convicted vendor list. N. Additional Information: Requests for additional information should be made to: Attn: City Clerk City of Winter Springs 1126 East S.R. 434 Winter Springs, FL 32708 407 -327 -5955 6 NOTE: All prospective proposers are hereby cautioned not to contact any member of the City of Winter Springs Commission, or any other staff member except the City Clerk, regarding this proposal. Such unauthorized contact shall be cause for disqualification. 7 PROPOSED TIME SCHEDULE FOR SELECTION OF AUDITORS RFP's Mailed Return Deadline for RFP's - (5:00 p.m.) RFP's Submitted to Auditor Selection Committee Preliminary Ranking to Determine Finalists Schedule Oral Presentations Oral Presentations with Finalist's Firms Final Ranking by Committee Complete Contract Negotiations Recommended Contract Presented to Commission January 13, 2004 February 13, 2004 February 16, 2004 February 23, 2004 February 24, 2004 March 8, 2004 March 8, 2004 March 9, 2004 March 22, 2004 8 AFFIDAVIT OF NON-COLLUSION AND OF NON-INTEREST OF CITY EMPLOYEES Description of Contract: AUDIT SERVICES FOR THE CITY OF WINTER SPRINGS, FLORIDA STATE: COUNTY OF: FLORIDA SEMINOLE Name of company responding Name of authorized individual signing being the first duly sworn, deposes and says that he/she is the respondent in the above proposal, that the only person or persons interested in said proposal are named therein; that no officer, employee or agent of the City of Winter Springs or of any other party is interested in said request for proposal; and that affiant makes the above proposal with no past or present collusion with any other person, firm or corporation. Company Signature Sworn and subscribed before me this 20 , in the State of Florida, County of day of Notary Public My Commission Expires: 9 CITY OF WINTER SPRINGS, FLORIDA STATEMENT OF "NO PROPOSAL" If you do not intend to respond to this Request for Proposal, please complete and return this form prior to the date shown for receipt of proposals to: Attn: City Clerk City of Winter Springs 1126 East S.R. 434 Winter Springs, FL 32708 We, the undersigned, have declined to propose on RFP # 006/04/JC, audit services, for the following reasons: Date: Signature: Company Name: Phone Number: 10