HomeMy WebLinkAboutOMNI-CRA-R-03-00400
ITEM 8
05/07/03
RESOLUTION SEOPW/OMNI CPA R- 0 3 ` 52
A JOINT RESOLUTION OF THE BOARD OF
DIRECTORS OF THE SOUTHEAST
OVERTOWN/PARK WEST ("SEOPW") AND OMNI
COMMUNITY REDEVELOPMENT AGENCIES (THE
"CRAs"), AUTHORIZING THE EXECUTIVE
DIRECTOR TO EXECUTE AMENDMENT NO. 1, IN
A FORM ACCEPTABLE TO GENERAL COUNSEL,
TO THE CURRENT PROFESSIONAL SERVICES
AGREEMENT (THE "AGREEMENT") BETWEEN THE
CRAB AND THE FIRM OF HARVEY, BRANKER &
ASSOCIATES, CERTIFIED PUBLIC
ACCOUNTANTS AND CONSULTANTS (HB&A)
CONCERNING ASSISTANCE TO THE CRA
FINANCE SECTION IN FORMULATING A REMEDY
FOR MATTERS DISCLOSED IN THE MANAGEMENT
LETTER ISSUED BY KPMG, LLP, AND WITH
OTHER FINANCIAL FUNCTIONS, TO INCREASE
THE AMOUNT OF THE AGREEMENT . BY
$50,000.00, THEREBY INCREASING THE
TOTAL AMOUNT OF THIS AGREEMENT FROM
$30,000.00 TO $80,000.00; FUNDS TO BE
ALLOCATED THEREFOR FROM THE SEOPW TAX
INCREMENT FUND ENTITLED, "PROFESSIONAL
SERVICES - OTHER," ACCOUNT CODE NO.
689001.550108.6.270, IN THE AMOUNT OF
$25,000.00, AND THE OMNI TAX INCREMENT
FUND ENTITLED, "PROFESSIONAL SERVICES -
OTHER," ACCOUNT CODE NO.
686001.590320.6.270, IN THE AMOUNT OF
$25,000.00.
WHEREAS, on January_:27, 2003, the Board of Directors
of the SEOPW and Omni CRAs passed SEOPW Resolution No. 03-
05 and Omni Resolution No. 03-04 respectively, authorizing
• the Executive Director to execute an agreement, in a form
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OMNI/CRA . SEOPW/CRA:
03® 40 03- 52
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acceptable to General Counsel, with a Certified Public
Accounting ("CPA") firm to assist the CRA Finance Section
with various financial functions for a total fee not to
exceed $30,000.00; and
WHEREAS, on February 24, 2003, the CRA Executive
f
Director engaged the firm of Harvey, Branker & Associates,
P.A., Certified Public Accountants & Consultants for this
purpose; and
WHEREAS, the resignation of the CRA Chief Financial
Officer (the "CRA CFO") on March 11, 2003, required that a
principal of HB&A be physically present at the CRA full-
time, for four days each week in order to perform the day-
to-day functions of the CRA CFO in addition*_ to those
functions stipulated in the agreement; and
WHEREAS, the Executive Director is not prepared, at
this point, to actively recruit to fill the vacant CRA CFO
position, nor convinced that the CRA requires a position of
that level of expertise to head the Finance Section; and
WHEREAS, the Executive Director wishes to allow both
the internal and external auditors to finish their review
of the CRA and submit their report as well as allow HB&A to
complete their recommendations before making a
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03- 40 03- 52
recommendation as to how or with what level of expertise
the CRA should fill the vacant CFO position; and
WHEREAS, in the interim, the CRA requires the services
of a CPA to continue to operate on a daily basis; and
WHEREAS, the Executive Director anticipates- that with
the approval of - this amendment, the CRA will be able to
continue operating in the financial arena until next budget'
year;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
DIRECTORS OF THE SEOPW AND OMNI COMMUNITY REDEVELOPMENT
AGENCIES OF THE CITY OF MIAMI, FLORIDA:
Section 1. The recitals and' findings
contained in the Preamble to this Resolution are hereby
adopted by reference and incorporated herein as if fully
set forth in this Section.
Section 2. The Board of Directors of the
Southeast Overtown/Park West and Omni Community
Redevelopment Agencies, hereby, authorize the Executive
Director to execute Amendment No. 1, in a form acceptable
to General Counsel, to the current Professional Services
Agreement between the CRAs and HB&A, to increase the total
�__ A
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03-- 40 03- 52
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amount of the agreement by $50,000.00, from $30,000.00 to
$80,000.00, in order to continue providing assistance to
the CRA Finance Section with various financial functions.
Section 3.
Funds
for
this
increase will
be
allocated therefor
from
the'
SEOPW
Tax Increment
Fund
entitled, "Professional Services - Other," Account Code No.
689001.550108.6.270, in the total amount of $25,000.00, and
the Omni Tax Increment Fund entitled, "Professional
Services - Other," Account Code No. 686001.590320.6.270, in
the total amount of $25,000.00.
Section 3. This., Resolution shall become effective
immediately upon its adoption. ��,',,
4Ak
PASSED AND ADOPTED this q _day of 2003.
AR HUR E. TEELE, JR., CHAIRMAN
ATTEST:
PRI ILLA A. THOMPSON
CLERK OF THE BOARD
APPROVED
7E`RAL C0UNSELL v
FKR:SG
D CORRECTNESS:
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omw/co,1
03- 40
SE®PW/CRA
03- 52
0 CITY OF MIAMI, FLORIDA 0
INTER -OFFICE MEMORANDUM
j ITEM 8
r
0 O: Honorable Arthur E. Teele, Jr., Chairman
& Members of the CRA Board
FROM:
Frar---Rollason
Executive Director
Community Redevelopment Agency
RECOMMENDATION:
DATE: MAY 9 2003
FILE:
SUBJECT. Increasing Existing CPA Consulting
Contract by $50,000
REFERENCES:
5/19/03 CRA Board Meeting
ENCLOSURES:
It is respectfully recommended that the Board of Directors approve the attached Joint Resolution
authorizing the Executive Director to execute Amendment No. 1 to the existing Professional
Services Agreement with Harvey, Branker & Associates, Certified Public Accountants and
Consultants, increasing the amount of the agreement by $50,000.00 from the originally
approved $30,000.00 funding level to a total of $80,000.00 with equal funding being taken
from available SEOPW CRA and the Omni CRA Tax Increment Funds.
JUSTIFICATION:
On February 24, 2003, I engaged the firm of Harvey, Branker & Associates (HB&A) pursuant to
direction given by the Board of Directors in SEOPW CRA Resolution No. 03-05 and Omni
Resolution No. 03-04, passed on January 27, 2003, to perform CPA consulting functions for the
CRA. Originally, it was anticipated that the scope of work would be limited to reviewing existing
financial procedures and recommending changes; modifications, and new systems to be
implemented to address shortcomings identified over the past couple of years by the external
auditors as well as those concerns voiced by Board Members. This firm would work with the
existing CRA Chief Financial Officer and coordinate efforts with the City through the Finance
and Budget Departments in conjunction with our external auditors, KPMG, LLP.
In mid -March, however, the CRA's Chief Financial Officer resigned; and HB&A has been filling
this gap. This void has placed a principal of HB&A physically at the CRA on a 4-day-per-week,
8-hour-per-day basis to perform not only those duties previously described, but also the day-to-
day functions normally performed by in-house staff. In addition, I am not prepared at this point
to actively recruit for a replacement for the CFO position, nor am I convinced that we need
someone at that level. My strategy at the moment is to allow the external auditors to finish their
review and submit their report and to allow the City's Internal Auditor to complete his audit and
to allow HB&A to complete their recommendations before I make a recommendation as to how
or with what level of expertise we fill this vacant position - and whether we do it with in-house
staff or some level of consulting services.
In the interim, we require the services of a CPA to continue to operate on a daily basis, and I am
recommending that the Board approve the attached joint resolution. I am anticipating that with
the balance left from the originally approved .$30,000, and the added $50,000, we will be able to
operate in the financial arena until next budget year.
FKR/sg
FUNDING SOURCE: SEOPW. TIF —Professional Services— Other
ACCOUNT CODE: 689001.550108.6.270 ($25,000)
SEOPW/CRA OMWIM
FUNDING SOURCE: OMNI TIF —Professional Services -Other 4
ACCOUNT CODE: 686001.590320.6.270 ($25,000) 03 - 52 03 _
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AGENDA ITtM
FINANCIAL INFORMATION FORM
Cm OF MIAMI
COMMUNITY REDEVELOPMENT AGENCY
SEOPW CRA or OMNI CRA f applicable)
CRA Board Meeting Date: May 19, 2003
CRA Section: Finance
Brief description of CRA Agenda Item:
Increasing the HB&A contract (Amendment No. 1) by $50,000, from $30,000 to $80,000
— taking $25,000 from SEOPW TIF, and $25,000 from Omni TIF.
Project Number (if applicable):
❑ YES, there are sufficient funds in Line Item:
Index Code: Minor:
Amount:
❑ NO (Complete the following source of funds information):.
Amount budgeted in the line item: $
Balance in the line item: $
Amount needed in the line item: $
Sufficient funds will be transferred from the following line items:
ACTION
I ACCOUNT NUMBER
TOTAL
Project No./Index/Minor Object
From
$
To
$
From
$
To
$
Comments:
-A Approved by: Date: P v3
CRA Executive Director/Designee
Ver I by:
CRA Acc unting aSecti&n
7�rn.;ry jvar„�� spas
Date: 4 a
APPROVALS
Verified by:
.Date:
0 3 _ 52 OMW/CRA
03- 40
0 SEOPW/CRA ITEM 9
RESOLUTION NO. 0 3 - +0 5
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SOUTHEAST OVERTOWN/PARK WEST COMMUNITY
REDEVELOPMENT AGENCY ("CRA") AUTHORIZING .THE
EXECUTIVE DIRECTOR TO EXECUTE AN AGREEMENT,
IN A FORM ACCEPTABLE TO THE CITY ATTORNEY,
WITH A CERTIFIED PUBLIC ACCOUNTING ("CPA")'
FIRM, PURSUANT TO THE RECOMMENDATION MADE BY
KPMG, LLP, EXTERNAL AUDITORS FOR THE CRA;
DIRECTING THAT KPMG, LLP SHALL NOT BE
INVOLVED IN THE SELECTION OF THE CPA FIRM;
AND FURTHER DIRECTING THAT THE CPA SHALL BE
DESIGNATED AS A SOLE SOURCE VENDOR FOR THE
PURPOSE OF ASSISTING THE CRA FINANCE
DEPARTMENT: (1) IN FORMULATING A REMEDY FOR
MATTERS DISCLOSED IN THE MANAGEMENT LETTER,
ISSUED BY KPMG, LLP, PERTAIN-ING TO THE OMNI
AND SOUTHEAST, OVERTOWN/PARK WEST FINANCIAL
STATEMENTS FOR FISCAL YEARS ENDING SEPTEMBER
30, 2000 AND SEPTEMBER 30, 2001; AND (2) WITH
ANY OTHER FINANCIAL FUNCTION OR MATTER
REQUIRING THEIR INPUT OR ASSISTANCE, FOR A
TOTAL FEE NOT TO EXCEED $30,000.
WHEREAS, the Board of the Directors is desirous of insuring
compliance with Section 163.387(8), Florida Statutes, pertaining
to the financial reporting of trust funds; and
WHEREAS, the external auditor has made recommendations to
assist the CRA in complying with current statutory reporting
requirements pertaining to trust funds.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF MIAMI, FLORIDA:
®1VINI/CRQ SE®PVV/CRA
SEOPiiV'ifOUS.-
03- 40 03- 52
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Section 1. The recitals and findings contained in the
Preamble to this Resolution are incorporated herein as if fully
set forth in this Section.
Section 2. The Executive Director is authorized to
execute an agreement, in a form acceptable to the City Attorney,
with a certified public accounting firm, pursuant to the
recommendation made by KPMG, LLP, external auditors for the CRA.
Section 3. It is directed that KPMG, LLP shall not be
involved in the selection of the certified public accounting
firm, and that the firm shall be designated as a sole source
vendor for the purpose of assisting the CRA Finance Department:
(1) in formulating a remedy for matters disclosed in the
management letter, issued by KPMG, LLP, pertaining to the Omni
and Southeast Overtown/Park West financial statements for fiscal
years ending September 30, 2000 and September 30, 2001; and (2)
with any other financial function or matter requiring their
input or assistance.
Section 4. It is .further directed that the total fee
shall be in an amount not to exceed $30,000.
.Section 5. This Resolution shall be effective upon its
adoption.
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Opp/CRA SEOPW/CIS
03- 40 03- 52 ---0"
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PASSED AND ADOPTED this 27th day of January, 2003.
ATTEST:
PRISCILLA A. THOMPSON
CITY CLERK
APPROVED AS TO FORM
AND CORRECTNESS:
�NDRO VILARELLO
ITY ATTORNEY
SEOPW/CRA R-03-05:ELF
ARTHUR E. TEELE, JR. CHAIRMAN
m
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OMNI/CRA 0 3 — 45 2
3- 40
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101
OMNI/CRA ITEM 9
RESOLUTION NO. 03- 04
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
OMNI COMMUNITY REDEVELOPMENT AGENCY ("CRA")
AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE.
AN AGREEMENT, IN .A FORM ACCEPTABLE TO THE
CITY ATTORNEY, WITH A CERTIFIED PUBLIC
ACCOUNTING ("CPA") FIRM, PURSUANT TO THE
RECOMMENDATION MADE BY KPMG, LLP, EXTERNAL
AUDITORS FOR THE CRA; DIRECTING THAT KPMG,
LLP SHALL NOT BE INVOLVED IN THE SELECTION OF
THE CPA FIRM; AND FURTHER DIRECTING THAT THE
CPA SHALL BE DESIGNATED AS A SOLE SOURCE
VENDOR FOR THE PURPOSE OF ASSISTING THE CRA
FINANCE DEPARTMENT: (1) IN FORMULATING A
REMEDY FOR MATTERS DISCLOSED IN THE
MANAGEMENT LETTER, ISSUED BY KPMG, LLP,.
PERTAINING TO THE OMNI "AND SOUTHEAST
OVERTOWN/PARK WEST .FINANCIAL STATEMENTS FOR
FISCAL YEARS ENDING SEPTEMBER .30, 2000 AND
SEPTEMBER 30, 2001; AND (2) WITH ANY OTHER
FINANCIAL FUNCTION OR MATTER REQUIRING THEIR
INPUT OR ASSISTANCE, FOR A TOTAL FEE NOT TO
EXCEED $30,000.
WHEREAS, the Board of the Directors is desirous of insuring
compliance with Section 163.387(8), Florida Statutes, pertaining
to the financial reporting of trust funds; and.
WHEREAS, the external auditor has made recommendations to
assist the CRA in complying with current statutory reporting
requirements pertaining to trust funds.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE OMNI COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF MIAMI,
FLORIDA:
OAM/CRA SEOPW/CRA
03- 40 02- 52
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Section 1. The recitals and findings contained in the
Preamble to this Resolution are incorporated herein as if fully
set forth in this Section.
Section 2. The Executive Director is authorized to
execute an agreement, in a form acceptable to the City Attorney,
with a certified public accounting firm, pursuant to the
recommendation made by KPMG LLP, external auditors for the CRA.
Section 3. It is directed that KPMG, LLP shall not be
involved in the selection of the certified public accounting
firm, and that the firm shall be designated as a sole source
vendor for the purpose of assisting the CRA Finance Department:
(1) in formulating a remedy for matters disclosed in the
management letter, issued by KPMG, LLP, pertaining to the Omni
and Southeast Overtown/Park West financial statements for fiscal
years ending September 30, 2000 and September 30, 2001; and (2)
with any other financial function or matter requiring their
input or assistance.
Section 4. It is further directed that the total fee
shall be in an amount not to exceed $30,000.
Section 5. This Resolution shall be effective upon its
adoption.
®1V�TI/CRA SE®PW/CIS
03- 40 03- 52
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PASSED AND ADOPTED this 27th day of January, 2003.
ATTEST:
PRISCILLA A. THOMPSON
CITY CLERK
APPROVED AS TO FORM
AND CORRECTNESS:
-- -- -/ ---- -- -- - -. ---
ARTHUR E. TEELE, JR. CHAIRMAN
owa/m SEOPW/OIA:
03- 40 03- 52
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