HomeMy WebLinkAboutR-03-1042J-03-798
09/25/03 RESOLUTION NO.
A RESOLUTION OF THE MIAMI CITY COMMISSION,
WITH ATTACHMENT(S), ACCEPTING THE CITY
MANAGER'S RECOMMENDATION TO APPROVE THE
FINDINGS OF THE EVALUATION COMMITTEE PURSUANT
TO REQUEST FOR PROPOSALS NO. 02-03-180, THAT
THE MOST QUALIFIED FIRM TO PROVIDE EXTERNAL
AUDITING SERVICES FOR THE CITY OF MIAMI IS
KPMG, LLP, ("KPMG") THE TOP-RANKED FIRM;
AUTHORIZING THE CITY MANAGER TO EXECUTE A
PROFESSIONAL SERVICES AGREEMENT, IN
SUBSTANTIALLY THE ATTACHED FORM, WITH KPMG
FOR A ONE-YEAR PERIOD, IN AN AMOUNT NOT TO
EXCEED $320,000; ALLOCATING FUNDS FROM
ACCOUNT CODE NO. 001000.260201.6.280.
WHEREAS, Request for Proposals No. 02-03-180 was issued to
secure external auditing services for the City of Miami ("City"),
on a contract basis, for the Department of Finance; and
WHEREAS, thirty solicitations were mailed, and three
Proposals were received and evaluated by the Evaluation
Committee; and
WHEREAS, the Committee met, evaluated, and recommended that
the City Manager execute a Professional Services Agreement
("Agreement"), with KPMG, LLP, ("KPMG") the most qualified firm
CITY C4o1OISS101i
NELIU4 3
SEP 2 5 2003
AesolwWn No.
to provide external auditing services, for a three-year period,
with the option to extend for three additional one-year periods;
and
WHEREAS, the City Commission has determined, that at this
time, only a one-year contract is appropriate, pending a review
by the City Manager of external auditing firms and practices for
governmental entities throughout the State of Florida; and
WHEREAS, funding is available from Account Code
No. 001000.260201.6.280;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are adopted by reference and
incorporated as if fully set forth in this Section.
Section 2. The recommendation of the City Manager to
approve the findings of the Evaluation Committee, pursuant to
Request for Proposals No. 02-03-180, that the most qualified firm
to provide external auditing services for the City is KPMG, LLP,
is accepted.
Section 3. The City Manager is authorized -11 to execute
an Agreement, in substantially the attached form, with KPMG for a
1� The herein authorization is further subject to compliance with
all requirements that may be imposed by the City Attorney,
including but not limited to those prescribed by applicable City
Charter and Code provisions.
Page 2 of 3 i 10 4 2
one-year period, in an amount not to exceed $320,000, with funds
allocated from Account Code No. 001000.260201.6.280.
Section 4. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor.V
PASSED AND ADOPTED this 25th day of _September , 2003.
ATTEST:
'22!2F�
PRISCILLA A. THOM SON
-lel-I CITY CLERK
PREPARED'AS TO FORM
f
f
f,
C�ITY�
DR VIL'ARE'`LLO
ORNEY
W75 :tr:AS:BSS
CORRECTNESS
FV,* Afr' M,
��,,IeW.NUELA: DIAZ,
If the Mayor does not sign this Resolution, it shall become
effective at the end of ten calendar days from the date it was
passed and adopted. If the Mayor vetoes this Resolution, it
shall become effective immediately upon override of the veto by
the City Commission.
Page 3 of 3 .j3-1042
PROFESSIONAL SERVICES AGREEMENT
This Agreement is entered into this _ day of , 2003 (but effective as of
) by and between the City of Miami, a municipal corporation of the State
of Florida ("City") and KPMG, LLP ("Provider").
RECITAL
A. The City has issued a Request for Proposals ("RFP") for the provision of External
Auditing Services (" S: rvices") and Provider's pro, —,il ("Proposal"), in respo,,:,e thereto, has
been selected as the most qualified proposal for the provision of the Services. The RFP and the
Proposal are sometimes referred to herein, collectively, as the Solicitation Documents, and are by
this reference incorporated into and made a part of this Agreement. In the event of an express
conflict between the RFP and/or the Provosal and this Agreement, this Agreement shall control.
B. The Commission of the City of Miami, by Resolution No. - ,
adopted on
, 200_, approved the selection of Provider and authorized the City
Manager to execute a contract under the terms and conditions set forth herein.
NOW, THEREFORE, in consideration o` the mutual covenants and promises herein
contained, Provider and the City agree as follows:
TERMS
1. RECITALS: TI„, recitals are true and correc rind are hereby incorporated ;nto and made
a part ( this Agreement.
2. TERM: The term of this Agreement shall be one (1) year commencing on the
effective date hereof.
03-1041
3. OPTION TO EXTEND: Not applicable to this Professional Services Agreement.
There are no options to extend this Agreement.
4. SCOPE OF SERVICE:
A. Provider agrees to provide the Services as specifically described, and under the
special terms and conditions set forth in Attachment "A" hereto, which by this reference is
incorporated into and made a part of this Agreement.
B. Provider represents and warrants to the City that: (i) it possesses all
qualifications, licenses and expertise required under the Solicitation Documents for the
performance of the Services; (ii) it is not delinquent in the payment of any sums due the City,
including payment of permit fees, occupational licenses, etc., nor in the performance of any
obligations to the City; (iii) all personnel assigned to perform the Services are and shall be, at all
times during the term herwi, fully qualified and trained to perform the tasks assigned to each;
and (iv) the Services will be performed in the manner described in Attachment "A".
5. COMPENSATION:
A. The amount of compensation payable by the City to Provider shall be based on the
rates and sc_,_;uules described in Attache:. is "B" hereto, which by thi, reference is incorporated
into this Agreement; provides'.. however, that in no even; shall the amount of comp`nsation
exceed $320,000 in the absence of a duly executed amendment to this Agreement. The City shall
have no liability for payment of any compensation beyond the limitations expressed in this
Section.
B. Unless otherwise specifically provided in Attachment "B", payment shall be made
within forty-five (45) days after receipt of Provider's invoice, which shall be accompanied by
sufficient supporting documentation and contain sufficient detail, to allow a proper audit of
expenditure . -,i3OLl1Cl City require one to performed. If Provider is ifflded to reimbursement
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of travel expenses [i.e. Attachment `B" includes travel expenses as a specific item of
compensation], then all bills for travel expenses shall be submitted in accordance with Section
112.061, Florida Statutes.].
6. OWNERSHIP OF DOCUMENTS: Except for Provider's work papers or
internal administrative records, which shall remain the property of Provider, Provider
understands and agrees that any information, document, report or any other material whatsoever
which is given by the City to Provider or which is otherwise obtained or prepared by Provider
pursuant to or under the terms of this Agreement is and shall at all times remain the property of
the City. Provider agrees not to use any such information, document, report or material for any
other purpose whatsoever without the written consent of the City Manager, which may be
withheld or conditioned by the City in its sole and subjective discretion.
7. AUDIT AND INSPECTION RIGHTS:
A. The City may, at reasonable times, and for a period of up to three (3) years
following the date of final payment by the City to Provider under this Agreement, audit , or cause
to be audited, those books and records of Provider which are related to Provider's performance
under this Agreement. Provider agrees to maintain all such books and records at its principal
place of business for a period of three (3) years after final payment is made under this
Agreement.
B. The City may, at reasonable times during the term hereof, inspect Provider's
facilities and perform such tests, as the City deems reasonably necessary, to determine whether
the goods or services required to be provided by Provider under this Agreement conform to the
terms hereof and/or the terms of the Solicitation Documents, if applicable. Provider shall make
available to the City all reasonable facilities and assisti Lice to facilitate the performance of tests
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or inspections by City representatives. All tests and inspections shall be subject to, and made in
accordance with, the applicable provisions of Chapter 18 of the Code of the City of Miami,
Florida, as it may be amended or supplemented, from time to time.
8. AWARD OF AGREEMENT: Provider represents and warrants to the City that it
has not employed or retained any person or company employed by the City to solicit or secure
this Agreement and that it has not offered to pay, paid, or agreed to pay any person any fee,
commission, percentage, brokerage fee, or gift of any kind contingent upon or in connection
with, the award of this Agreement.
9. PUBLIC RECORDS: Provider understands that the public shall have access, at all
reasonable times, to all documents and information pertaining to City contracts, subject to the
provisions of Chapter 119, Florida Statutes, and agrees to allow access by the City and the public
to all documents subject to disclosure under applicable law. Provider's failure or refusal to
comply with the provisions of this Section shall result in the immediate cancellation of this
Agreement by the City.
10. COMPLIANCE WITH FEDERAL, STATE AND LOCAL LAWS: Provider
understands that agreements between private entities and local governments are subject to certain
laws and regulations, including lay\ , ,-)ertaining to public recorus, conflict of interest, record
keeping, etc. City and Provider agree to comply with and observe all applicable laws, codes and
ordinances as they may be amended from time to time.
11. INDEMNIFICATION: Provider shall indemnify, defend, save and hold harmless
the City and its officials, employees and agents individually and collectively (collectively
referred to as "Indemnitees") from and against all loss, costs, penalties, fines, damages, claims,
expenses (including attorney's fees) or liat,Ilities (collectively referred .n as "Liabilities") by
d:K-0300713-External Auditing PSA 2003 Final Revised I Ycai—oc 4 )3-1042
reason of any injury to or death of any person or damage to or destruction or loss of any property
arising out of, resulting from, or in connection with (i) the performance or non-performance of
the services contemplated by this Agreement which is or is alleged to be directly or indirectly
caused, in whole or in part, by any act, omission, default or negligence (whether active or
passive) of Provider or its employees, �igents or subcontractors (collectively referred to as
"Provider"); or (ii) the failure of the Provider to comply with any of the paragraphs herein or the
failure of the Provider to conform to statutes, ordinances, or other regulations or requirements of
any governmental authority, federal or state, in connection V idl the performance of this
Agreement. Provider expressly agrees to indemnify and hold harmless the Indemnitees,
individually and collectively, from and against all liabilities which may be asserted by an
employee or former employee of Provider, or any of its subcontractors, as provided above, for
which the Provider's .:anility to such employee or former employee would othciwise be limited
to payments under state Workers' Compensation or similar laws. This Tndemnification provision
shall control over the Indemnification provision in the RFP and shall survive the termination or
the expiration of this Agreement for the limitations period prescribed by Florida law. This
Indemn ._,,,,ion provision shall obt, LIU the Provider to defend ;ai its own expense) to al..
through appellate, supplemental or bankruptcy proceedincys, or to provide for such defense, at the
City Attorney's option, any and all claims of liability and all suits and actions of every name and
description covered by this Section 11, which may be brought against the City whether
performed by Providei , of persons employed or util,..�d by the Provider.
12. DEFAULT: If Provider fails to comply with any term or condition of this Agreement,
or fails to perform any of its obligations hereunder, then Provider shall be in default. Prior to
termination of this Agreement for default, the City shall notifv the Provider in writing of its
d:K-0300713-External Auditing PSA 2003 Final Revised i Year.doc 5 -A 10 42
intent to terminate the Agreement for default, identify the alleged deficiencies in performance
giving rise to the intent to terminate, and shall give the Provider thirty (30) days to cure such
deficiencies. Upon the occurrence of a default hereunder the City, in addition to all remedies
available to it by law, may following thirty (30) days from the date of the written notice to
Provider, terminate this Agreement whereupon all payment:., advances, or other compensation
paid by the City to Provider while Provider was in default shall be immediately returned to the
City. Provider understands and agrees that termination of this Agreement under this Section
shall not release Provider frond any obligation accruing prim- to the effective date of termination.
Should Provider be unable or unwilling to commence to perform the Services within the time
provided or contemplated herein, then, in addition to the foregoing, Provider shall be liable to the
City for all expenses incurred by the City in preparation and negotiation of this Agreement, as
well as all wts and expenses incurreu uy the City in the re -pros Urement of the Services,
including consequential and incidental damages.
13. RESOLUTION OF CONTRACT DISPUTES: Provider understands and agrees that
all disputes between Provider and the City based upon an alleged violation of the terms of this
.greement by the City sh. , be submitted to the City -onager for his/her resolute—. , prior to
Provider being entitled to seek judicial relief in connection therewith. Tn the event that the
amount of compensation hereunder exceeds $25,000, the City Manager's decision shall be
approved or disapproved by the City Commission. Provider shall not be entitled to seek judicial
relief unless, Vii) it has first received C -) Manager's written decision, approved by the City
Commission if the amount of compensation hereunder exceeds $25,000; or (ii) a period of sixty
(60) days has expired, after submitting to the City Manager a detailed statement of the dispute,
accompanied by all supporting documentation (90 days if City Manager's decision is subject to
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City Commission approval); or (iii) City has waived compliance with the procedure set forth in
this Section by written instruments, signed by the City Manager.
14. CITY'S TERMINATION RIGHTS:
A. The City shall have the right to termiu�Oc this Agreement, in its sole discretion, at
any time, by giving written notice to Provider at least five (5) business days prior to the effective
date of such termination. In such event, the City shall pay to Provider compensation for services
rendered and expenses incurred prior to the effective date of termination. In io event shall the
City be liable to Provider for any additional compensation, other than that provided herein, or for
any consequential or incidental damages.
B. The City shall have the right to terminate this Agreement, without notice to
Proviuer, upon the occurrence of in event of default hereunder which, in the opinion of the City
Commission or City Manager, is of sufficient gravity that it is necessary to protect the interests of
public health, safety or general welfare. In such event, the City shall not be obligated to pay any
amounts to Provider and Provider shall reimburse to the City all amounts received while Provider
was in default undo. .leis Agreement.
15. INSURANCE: Provide;- -,hall, at all times during th- term hereof, maintain such
insurance coverage as may be required by the City. All such insurance, including renewals, shall
be subject to the approval of the City for adequacy of protection and evidence of such coverage
shale ue furbished to the City on Lurtiticates of Insurance indic.�,ulg such insurance to be in force
and effect and providing that it will not be canceled during the performance of the services under
this contract without thirty (30) calendar days prior written notice to the City. Completed
Certificates of Insurance shall be filed with the City prior to the poi-formance of services
&K -0300713 -External Auditing PSA 2003 Final Revised 1 Year.dcx 7 "j 3 — 1042
hereunder, provided, however, that Provider shall at any time upon request file duplicate copies
of the policies of such insurance with the City.
If, in the judgment of the City, prevailing conditions warrant the provision by Provider of
additional liability insurance coverage or coverage which is different in kind, the City reserves
the right to require the provision by Provider of an amount of coverage different from the
amounts or kind previously required and shall afford written notice of such change in
requirements thirty (30) days prior to the date on which the requirements shall take effect.
Should the Provider fail or refuse to satisfy the requirement of ch�inged coverage within thirty
(30) days following the City's written notice, this Contract shall be considered terminated on the
date that the required change in policy coverage would otherwise take effect. All references to
the City in Section 15 shall mean the City of Miami Risk Management Administrator.
16. NONDISCRIMINATION: Provider represents and warrants to the City that Provider
does not and will not engage in discriminatory practices and that there shall be no discrimination
in connection with Provider's performance under this Agreement on account of race, color, sex,
religion, age, handicap, marital status or national origin. Provider further covenants that no
otherwise qualified individual shall, solely by reason of his/her race, color, sex, religion, agc,
handicap, marital status or national origin, be excluded t, om participation in, be denied services,
or be subject to discrimination under any provision of this Agreement.
17. MINORITY AND WOMEN BUSINESS AFFAIRS AND PROCUREMENT
PROGRAM: The City has established a Minority and Women Business Affairs and
Procurement Program (the "MIWBE Program") designed to increase the volume of City
procurement and contracts with Blacks, Hispanic and Women -owned businesses. The M/WBE
Progrclm is found in Ordinance No 10062, a copy of which has heen delivered to, and receii-f of
O.K-0300713-External Auditing PSA 2003 Final Revised l Year.dcx 8 -j3-1042
which is hereby acknowledged by Provider. Provider understands and agrees that the City shall
have the right to terminate and cancel this Agreement, without notice or penalty to the City, and
to eliminate Provider from consideration and participation in future City contracts if Provider, in
the preparation and/or submission of the Proposal, submitted false of misleading information as
to its status as Black, Hispanic and/or Women -owned business and/or the quality and/or type of
Minority or Women -owned business participation.
18. ASSIGNMENT: The Provider is a certified public accounting firm and their
services are considered to be unique in nature by the City. This Agreement shall not be
assigned by Provider, in whole or in part, without the prior written consent of the City
Commission, which may be withheld or conditioned, in the City's sole discretion.
19. NOTICES: All notices or other communications required under this Agreement shall
be in writia,,, and shall be given by hanu-delivery or by registered of certified U.S. Mail, return
receipt requested, addressed to the other party at the address indicated below or to such other
address as a party may designate by notice given as herein provided. Notice shall be deemed
given on the day on which personally delivered; or, if by mail, on the fifth day after being posted
or the date of actual receli , ,vhichever is earlier.
d:K-0300713-External Auditing PSA 2003 Final Revised 1 Year.doc 9 ;j3— 1042
TO PROVIDER: TO THE CITY:
Scott Simpson, Finance Director
Finance Department
City of Miami
444 S.W. 2nd Avenue, Suite
Miami, FL 33130
20. MISCELLANEOUS PROVISIONS:
A. This Agreement shall be construed and enforced according to the laws of the State
of Florida. Venue in any civil action between the parties shall be in Miami -Dade County,
Florida.
In order to expedite the resolution or conclusion of any civil action between the parties, the
parties voluntarily and knowingly waive their right to demand a jury trial or to file a permissive
counterclaim in any civil action between them.
B. Title and paragraph headings are for conveni,.;rrt reference and are not a pale of this
Agreement.
C. No waiver or breach of any provision of this Agreement shall constitute a waiver
of any subsequent breach of the same or any other provision hereof, and no waiver shall be
effective unless , jade in writing.
D. Should any provis- )n, paragraph, sentence, \N -)rd or phrase contained in 'his
Agreement be determined by a court of competent jurisdiction to be invalid, illegal or otherwise
unenforceable under the laws of the State of Florida or the City of Miami, such provision,
Imiagraph, sentence, word or phrase shall be deemed modi,icci to the extent necessary i1, order to
conform with such laws, or if not modifiable, then same shall be deemed severable, and in either
event, the remaining terms and provisions of this Agreement shall remain unmodified and in full
force and cifect.
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E. This Agreement constitutes the sole and entire agreement between the parties
hereto. No modification or amendment hereto shall be valid unless in writing and executed by
properly authorized representatives of the parties hereto.
21. SUCCESSORS AND ASSIGNS: This Agreement shall be binding upon the parties
hereto, their heirs, executors, legal representatives, successors, or assigns.
22. INDEPENDENT CONTRACTOR: Provider has been procured and is being
engaged Lo provide services to the City as an independent contni; Lor, and not as an agent or
employee of the City. Accordingly, Provider shall not attain, nor be entitled to, any rights or
benefits under the Civil Service or Pension Ordinances of the City, nor any rights generally
afforded classified or unclassified employees. Provider further understands that Florida
Workers' Compensation benefits available to employees of the City are not avail tole to Provider,
and agrees to provide workers' compensation insurance for any employee or agent of Provider
rendering services to the City under this Agreement.
23. CONTINGENCY CLAUSE: Funding for this Agreement is contingent on the
availabi-q of funds and continued L,Luuorization for program ac -,lues, and the Agreement i.,
subject to amendment or tcrmination due to lack of furls, reduction of funds and/o- change in
regulations, upon thirty (30) days notice.
24. REAFIRMATION OF REPRESENTATIONS: Provider hereby reaffirms all of the
representations contaii,, Li in the Solicitation Docun1t-�,11S.
25. ENTIRE AGREEMENT: This instrument and its attachments constitute the sole and
only agreement of the parties relating to the subject matter hereof and correctly set forth the
rights, duties, and obligations of each to the other as of its effective date. Any prior agreements,
d:K-0300713-External Auditing PSA 2003 Final Revised I YearAm I I o)3-1042
promises, negotiations, or representations not expressly set forth in this Agreement are of no
force or effect.
26. COUNTERPARTS: This Agreement may be executed in two or more counterparts,
each of which shall constitute an original but all of which, when taken together, shall constitute
one and the same Agreement.
27. SPECIAL INSURANCE AND INDEMNIFICATION RIDER: Please initial if
applicable: ❑ ❑
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their respective officials thereunto duly authorized, this the day and year above
written. )�ejt u & U-&% IS ro-5o Jt y klt L-11 tL gym_ .
ATTEST:
State of Florida
County of Palm Beach:
K�j
Print Name: Melanie Rich
Notary Public
"""""• MELANIE RICH
N,+Pry Public - state of Florida
My ;nosteonF Oct28,2005
WIFCommission # DD050640
Bonded 0 National Notary Asan.
"Provider"
KPMG LLP,
a Limited Liability Partnership
By:�
Print Name: Kenneth Deon
Partner
d:K-0300713-External Auditing PSA 2003 Final Revised I Year.doc.dT2 -% 3 — 1 0 4
r
N
ATTEST:
"City"
CITY OF MIAMI, a municipal
corporation
By:
Priscilla A. Thompson, City Clerk Joe Arriola, City Manager
^ PPROVED AS TO FORD, T�
CORRECTNESS:
ALEJANDRO VILARELLO
City Attorney
APPROVED AS TO INSURA �E
RE UIREMENTS:
� PPROWED
o
Risk Management
d: K -0300713 -External Auditing PSA 2003 Final Revised l Year.doc 13 )3-1042
ATTACHMENT A — Scope of Work
A. Audit shall be performed in compliance within the requirements of:
1) Chapter 79-589 and any other applicable Florida Statutes
2) Regulations of the State of Florida Department of Banking and Finance
3) Rules of the Auditor General, State of Florida, Chapter 10-550 (Local Government
Audits) and Chapter 10-600 (Audits of state grants and aids appropriations under Section
216.349 Florida Statutes).
4) Audits of State and Local Government Units, issued by the American Institute of
Certified Public Accountants
5) OMB Circular A-133, Audits of States, Local Governments and Non-PI-ofit
Organizations, Office of Management and Budget
6) United S?ates Single Audit Act of 194
7) United States Single Audit Act Amendments of 1996
8) State of Florida Single Audit Act
9) Statements on Auditing Standards (GAAS)
10) Government Auditing Standards, issued by the Comptroller General of the United States
11) Generally accepted governmental accounting standards
12) Any other applicable federal, state, local regulations or professional guidance not
specifically listed above as well as any additional requirements, which may be adopted by
these organizations in the future.
B. The City expects the auditor to express an opinion on the fair presentation of its basic
financial statements in conformity with applicable generally accepted accounting principles.
The auditor is to also to provide an opinion on the combining and individual fund statements.
The auditor is not required to audit the required supplementary information or the statistical
sections contained in the CAFR.
C. The audit shall be an annual audit as defined in section 11.45 (1)(b), Florida Statutes, and
shall be con. J in accordance with g� illy accepted auditing st. ..:Js as well as the
standards listed above.
D. A Single Audit in accordance with the Federal and State Single Audit Acts and related
professional guidance shall be conducted as required. The auditor shall provide the City with
any required letters and schedules related to this audit.
E. The audit shall also include a review of the financial report provided to the Department of
';inking and Finance to as. consistency with the CA. "
F. A final and complete opinion letter on the financial statements taken as a whole as well as
any additional letters required by the United States or State of Florida Single Audit Act shall
be delivered to the City no later than March Vt following the end of the fiscal year under
audit. These letters shall be included in the Comprehensive Annual Financial Report by the
City.
G. The auditor '-all submit, not later than ` �'lrch ls` following the end , r !fie fiscal year under
audit, a ful and complete manageme;:i letter which shall idents y any management
;;l3-1042 1of>
weaknesses observed, assess their effect on financial management and propose steps to
correct or eliminate those weaknesses. It is the City's intent that all fieldwork related to the
audit shall be completed by February I" following the end of the fiscal year under audit.
H. The auditor shall provide the City with sufficient letterhead to print 300 original copies of all
required letters for the Comprehensive Annual Financial Report.
I. The partner in charge of the audit and the audit manager or other CPA assigned to the audit
agrees to communicate with City Manager or designee, the Audit Advisory Committee, or
the City Commission, as deemed necessary.
J. The auditor shall as,;ist the City in preparing the Comprehensive Annual Financial Report.
The City shall retain ultimate responsibility for preparation of this document, however, the
auditor shall provide the following assistance:
a. Proof reading of entire document
b. Verification of implementation of recommended improvements from prior year
submission to GFOA under the Certificate of Achievement program.
C. Shall review applications for annual Certificate of Achievement for Excellence in
Financial Reporting.
d. Overall review including layout, design, and suggested improvements.
K. Timeliness is critical in the performance of the audit. The auditor should coordinate with the
Finance Director .,.,d endeavor to accomplish audit in a phased in app..,.,,;h throughout
the year in order to reduce the year-end workload on both the audit firm and City staff. The
City will make necessary records available to the auditor through the year to assist in this
regard. In addition, the City will make end -of -year records available to the auditor on or
before November 15`h after the end of the fiscal year under audit.
L. The auditor shall report to the City, at least weekly, the status of any potential audit
adjustments so that the City may have adequate opportunity to investigate, gather
in --tion and respond if nec( ark. Final audit adjustmen, hall be submitted to the
no later than February I" following the end of the fiscal year under audit.
M. The City may issue our or more official statements for the sale of bonds during the term of
the Contract. The official statement will contain the general-purpose financial statements or
an extraction from the CAFR. The auditor shall be required to issue, upon request, "comfort
lettcis" and other documents necc,,ary to issue the bonds. Un«ss significant additional st�,�l
time is required of the auditor, fees for such requests made by the City of Miami shall be
included in the l:. p fee submitted by Proposc
N. The workpapers are the property of the auditors and shall be held locally for a period of five
years. Workpapers shall be available for examination or duplication without charge to
authorized City personnel, representatives of Federal or State Agencies upon request of that
Agency or the City of Miami in accordance with Federal Law, State Law and other
regulations.
W irking papers will also be m�.Je available for examination, :it no charge, or duplication, ,it a
reap„:uibie charge, to subsequent .auditor, engaged by the City
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O. The auditors agree to notify the City immediately if any regulatory or other government
agency request a review of the audit workpapers concerning the City or any other
government client audited by the audit firm.
P. The auditor agrees to notify the City immediately should any disciplinary actions be taken or
complaints filed with any regulatory bodies against any of the firm's staff or the firm itself.
Q. The auditor must designate two (2) "key" members of the audit team. The City shall reserve
the right to approve any substitutions or changes in those staff designated as "key".
R. Auditor shall provide the City with a copy of each external quality control review (peer
review) conducted during the time period engaged by the City. In the event that a firm has
been formed so recerr,' that no peer reviews have been undertaken, the Propos-! should state
so in the response to !he RFP. If available, the Proposer may submit peer reviews from any
predecessor firms, however, a newly formed firm will not be eliminated from the proposal
process simply because no peer reviews have been conducted in the new firm's name.
S. The City implemented GASB No. 34 for the fiscal year ended September 30, 2002. The City
will require the auditor's assistance to comply with these reporting requirements. The auditor
will be required to provide technical advice and provide reasonable assistance as requested as
part of the contract.
T. The firm must agree to use City staff in preparation of supporting schedules, reconciliation's
and document retrieval. Prior planning and explicit instruction are paramount for timely
performance in this regard. The auditor shall provide the City with a list of all schedules to be
prepared by the City. Finance Department staff will be available during the audit to provide
information, documentation and explanation to the auditors.
The firm shall be required to provide additional services, not specifically addressed above, to
other City departments, . —Ticies, Boards, Trusts, etc. ',- may, from time to time, —mre
auditing services. Services may be contracted with that entity(s) at time of need, and a separate
Contract executed for provision of said services.
3of3
*93-1042
ATTACHMENT B — Fees for Services
LJ
Fees for Services
Fee Schedule
Our fees involve a substantial investment by KPMG in our relationship with the City. We trust that our fees
demonstrate KPMG's sincere interest in contributing to the City's long-term success.
The following represents our fee schedule for the September 30, 2003, 2004 and 2005 audits:
2003
Partner
$300
150
$45,000
Senior Manager
250
80
20,000
Manager
200
180
36,000
Senior
175
950
166,250
Staff
125
1,200
150,000
Total
417,250
Less Additional Discount
97,250
Proposed Fee
$320,000
2004
Partner
$300
120
$36,000
Senior Manager
250
50
12.500
\Sanaaer
200
170
f)O
Senior
175
950
166.250
Staff
125
1,100
137,500
Total
186,250
Less Additional Discount
56,250
Proposed Fee
5330,000
2005
Partner
$320
120
$38,400
Senior Manager
270
50
13,500
Manager
220
190
41,800
Senior
200
900
180,000
Staff
1.10
1,100
154,000
Total
427,700
Less additional discount
87,700
Proposed Fee
_
340,000
For addition work to be performed, we propose a single hourly rate of $220, based on the staff compositic
noted above.
on -104?
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Honorable M or and Members DATE :ALIG
2 9 FILE
of th`e\City C Sion
`
SUBJECT: Approving the Findings of
the Evaluation Committee
for RFP #02-03-180
FROM: Joe,,Arriola REFERENCES:
City Manager
ENCLOSURES:
RECOMMENDATION
It is respectfully recommended that the City Commission approve the findings of the
Evaluation Committee for Request for Proposal (RFP) No. 02-03-180 for External
Auditing Services; and to authorize the City Manager to enter into negotiations with the
recommended firms in rank order.
BACKGROUND
On July 25, 2003, RFP No. 02-03-180 was issued with responses due to the Office of the
City Clerk by August 14, 2003. Three (3) proposals were received, and three (3) proposals
were found to be responsive and in accordance with the terms set by the RFP.
Proposals received were mailed out to the RFP Evaluation Committee members on August
15, 2003 for review. One meeting (August 26, 2003) was held by the RFP Evaluation
Committee to review and evaluate the proposals. The firms were evaluated based on the
Proposer's a) Qualifications and Experience; b) Ability and Capability to Perform Required
Services; c) Fees for Services; ) Minority/Women Participation; and e) Local Preference.
The findings of the committee in rank order, are as follows: KPMG, LLP, Ernst & Young,
LLP, and Rachlin Cohen & Holtz, LLP.
It is the recommendation of the Evaluation Committee that the City Manager negotiate with
the highest ranked firm, and in the event negotiations are not successful, proceed to
negotiate with the second ranked firm. In the event negotiations are not successful with the
second ranked firm, proceed to negotiate with the third ranked firm. If negotiations are
unsuccessful, then the committee recommends that a new RFP be issued for external
aain -ces.J/DG
i3-1042
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: Glenn MarcosDATE : AUG 2 7 2003
FILE
Department of Purchasing
SUBJECT: procurement of
External Auditing Services
Scott Simpson�oa
FROM: Director of Fin REFERENCES :
ENCLOSURES:
The Department of Finance has verified that funding is available to procure the services
of KPMG, LLP for $ 320,000 from Account Code 001000.260201.6.280. The
procurement of the external auditing will be for KPMG, LLP to perform an audit of the
City's results of operation for Fiscal Year 2003.
Budget Approval:
SS/ss
S ri g, ire t /Designee Date
City Of ll WW
U111108 - 46110"
E3-2-77-03
*AWJMOls3§75 [pct is c---4 ?,M4 {
r11��Y18111111111INKAIN
UD 10100 - D201.6 . X80 �,�rtcitn S bu�Se�
%Adfied by: SIGNATURE
93-1042
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO: DATE : FILE .
Joe' Arriola
City Manager SUBJECT:
Approval of Evaluation Committee
For RFP 02-03-180: Auditing
FROM: / REFERENCESServlces
Scott Simpson �°`_
Finance Direct ENCLOSURES:
I am requesting your approval to appoint the following individuals to the Evaluation Committee
to evaluate proposals received for External Auditing Services, RFP 02-03-180.
Name Organization
Carlos Garcia, Finance Director, City of Hollywood, Florida
Catherine Graham, Finance Director, City of Oakland Park, Florida
Victor Igwe, Auditor General, City of Miami, Florida
Kenneth Meyers, Partner, Squire, Sanders & Dempsey
Willis Patterson, Assistant Controller, Miami -Dade County, Florida
Alternates:
Don Nelson, Finance Director, City of Coral Gables, Florida
Candis Trusty, Partner, Markowitz, Davis, Ringle & Trusty, P.A.
Scott Simpson, Finance Director, City of Miami, Florida
If this request meets with your approval, please indicate your approval by signing below:
joe Amola, t-ity manager
LH/SS/ss
C: Glenn N. Marcos, Director of Purchasing
;,l3-1042
MARKOWITZ, DAVIS, RINGEL & TRUSTY, P.A.
ATTORNEYS AT LAW
August 26, 2003
Joe Arriola
City Manager
TWO DATRAN CENTER, SUITE 1225
9130 SOUTH DADELAND BOULEVARD
MIAMI, FLORIDA 33156-7849
TELEPHONE (305) 670-5000
FAX (305) 670-5011
W W W.MDRTLAW.COM
Subject: External Auditing Services Evaluation Committee Recommendation
This memorandum serves to provide the recommendation of the Evaluation Committee for Request
for Proposal (RFP) No. 02-03-180 for External Auditing Services. On August 26, 2003, the
Evaluation Committee comprised of Catherine Graham, City of Oakland Park, Carlos Garcia, City
of Hollywood, Victor Igwe, City of Miami, Willis Patterson, Miami -Dade County, and myself met
and reviewed the three (3) proposals that were received and deemed responsive. The proposals were
evaluated based on the Proposer's a) Qualifications and Experience; b) Ability and Capability to
Perform Required Services; c) Fees for Services; and d) Local Preference. The results of the
Committee's findings in order of results from the firm with the highest point awarded to the least
are as follows:
1. KPMG, LLP
2. Ernst & Young, LLP
3. Rachlin Cohen & Holtz, LLP
It is the recommendation of the Evaluation Committee that the City negotiate with the highest
ranked firm, and in the event negotiations are not successful, proceed to negotiate with the second
ranked firm. In the event negotiations are not successful with the second ranked firm, proceed to
negotiate with the third ranked firm. If negotiations are unsuccessful, then the committee
recommends that a new RFP be issued for external auditing services.
Should you have any questions regarding the findings of the Evaluation Committee, please feel free
to contact me at (305) 670-5000, or Ms. Pamela E. Bums, Sr. Procurement Officer at (305) 416-
1905.
Very truly yours,
Candis Trus. }�
E
Approved: `7 e �'"� Date
JJoe d�rriola, City Manager
�
si3-102
ACCEPTANCE OF CITY MANAGER AND EVALUATION
COMMITTEE'S RECOMMENDATION
RFP NO. 02-03-180
ITEM:
External Auditing Services
DEPARTMENT: Finance
TYPE:
Contract
REASON: It is recommended that KPMG, LLP, the top
ranked firm, provide external auditing services for
the Department of Finance, for a period of three
(3) years, in an amount not to exceed $320,000 in
the first year, $330,000 in the second year, and
$340,000 in the third year, with the option to
renew for three (3) additional one-year periods, at
a negotiated rate not to exceed 25% of the third
year amount; authorizing the City Manager- to
execute a Professional Services Agreement, in a
form acceptable to the City Attorney; allocating
funds therefor from Account Code No. 001000-
260201.6.280.
Director of Purchasing
iz/o'J
D to
�A-1042