HomeMy WebLinkAboutR-89-0359J-89-330
3/29/89
i
RESOLUTION NO. 199 35!)
A RESOLUTION ACCEPTING THE RECOMMENDATION
OF THE CITY OF MIAMI'S AUDIT ADVISORY
COMMITTEE RANKING THE 1OF' THREE TEAMS OF
CERTIFIED PUBLIC ACCOU14TING FIRMS
PROPOSING SERVTCF7S AS EXTERNAL AUDITORS
FOR THE CITY OF MIAMI, AND AUTHORIZING THE
CITY MANAGER TO NEGOTIATE A CONTRACT WITH
THE HIGHEST RANKED TEAM, FORMED BY THE CPA
FIRMS OF DELOITTE HASKINS & SELLS;
SHARPTON, BRUNSON & COMPANY, P.A.; AND
VERDEJA, IRIONDO & GRAVIER, CPA'S.
WHEREAS, the City of Miami Audit Advisory Committee (The
Committee) has been empowered by Section 2-239.2 of the City of
Miami Code to seek responses from qualified independent auditors
to perform annual independent audit services for the City, and to
recommend selection of an independent auditor to the City
Commission based upon a review and analysis of such responses;
and
WHEREAS, the Committee, through the City Administration,
distributed a request for proposals for independent auditing
services; and
WHEREAS, five (5) teams of Certified Public Accounting firms
responded to such request for proposals; and
WHEREAS, the Committee reviewed and analyzed the written
proposals and conducted oral interviews of all proposing firms;
and
WHEREAS, the Committee ranked the top three (3) proposing
teams; and
WHEREAS, the Law and Rules of the Florida Board of
Accounting of the Department of Professional Regulation of State
of Florida, require the City Commission to open negotiations with
any of the top three (3) ranked firms;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. This resolution is adopted pursuant to the Code
of the City, the Florida Statutes, and other applicable
provisions of the law. CITY COIVIMISSION
MEETHNG OF
APR 14' 1989
ESOLU ION No. 89
-35
UJARKSc
Section 2. It is hereby ascertained, determined and
declared that it is in the best financial interest of the City to
open negotiations with the team of Certified Public Accounting
firms ranked highest by the City of Miami Audit Advisory
Committee for engagement as external auditors for the City of
Miami, formed by the firms of Deloitte Haskins & Sells; Sharpton,
Brunson & Company, P.A.; and Verdeja, Iriondo & Gravier, CPA's.
Section 3. The City Manager is hereby authorized to
negotiate a contract with this Team of Certified Public
Accountancy firms for independent auditing services. 1/
Section 4. This resolution shall be effective immediately
upon its adoption.
PASSED AND ADOPTED this 13th day of April 1989•
XAVIER L AREZ r
M A Y
ATTEST:
MATrTY HIRAI, CITY CLERK
FINAN IA�, REVIEW AND APPROVAL:
CARETdS``$. GARCIA, DIRECTOR
FINANd,E DEPARTMENT
PREPARED AND APPROVED BY:
s ����
ROBERT F. CLARK
CHIEF DEPUTY CITY ATTORNEY
APPROVED AS TO FORM ANDCCORRECTNESS:
A.-
-,--
OR L. FERN NDEZ
CIT ATTORNEY
Hof
1/ Said contract is to provide for 5% contract to be
performed by Pamela B. Watson, C.P.A.
-2- 89-359
CITY OF MIAMI, FLORIDA 59
INTER -OFFICE MEMORANDUM
TO: Honorable Mayor and Members
of the City Commission
FROM: Cesar Odio
City Manage
ti
DATE: AP R - 4 1989 FILE:
SUBJECT: External Auditors
Selection
REFERENCES: For City Commission
Meeting of April 13,
ENCLOSURES: 1989.
It is respectfully recommended that the attached resolution
accepting the recommendation of the City of Miami Audit Advisory
Committee ranking the top three teams of Certified Public
Accounting firms proposing services as external auditors for the
City of Miami, and authorizing the City Manager to negotiate a
contract with the highest ranked team, formed by the CPA firms of
Deloitte Haskins & Sells; Sharpton, Brunson & Company, P.A.; and
Verdeja, Iriondo & Gravier, CPA's, be approved.
BACKGROUND:
One of the duties established by the City Code for the City of
Miami Audit Advisory Committee (The Committee) is to seek
responses from qualified independent auditors to perform annual
independent audit services for the City and to recommend
selection of the most qualified independent auditors to the City
Commission based upon a review and analysis of such responses.
The Audit Advisory Committee is at this time composed as follows:
Appointed bY
Arturo Jordan, CPA, Chairman Vice -Mayor De Yurre
Marvin Armstrong Comm. Dawkins
Haydee A. Ceballos, CPA Mayor Suarez
Howard Gary Comm. Plummer
Ana Magda Guillen Comm. Kennedy
Due to the expiration of the existent external auditors contract,
the Committee prepared the attached Request for Proposals (RFP)
for Independent Auditing Services, with support from City staff.
The RFP was mailed to thirty four (34) CPA firms and it was
advertised in the Miami News, Miami Review, Diario Las Americas
and the Miami Times on November 17, 1988. The RFP asked for the
contract to be for a one year period with a series of four one-
year renewal options.
As a result of the RFP, five (5) proposals were received from
auditing teams, involving a total number of fourteen (14) CPA
firms. t19_13599
>-.
AOL
Proposals were reviewed and analyzed, and proposing firms were
interviewed orally to clarify issues and obtain additional
information.
The Committee has ranked the proposing teams as most qualified
for the engagement in the following order. Also indicated below
are the background of the firms and the percentages of the
contract agreed upon by the team member firms.
Team No. 1: Deloitte Haskins & Sells (National firm; 55% of
total contract)
Sharpton, Brunson & Company, P.A. (Black firm; 25 %
of total contract)
Verdeja, Iriondo & Gravier, CPA's (Hispanic firm;
20% of total contract)
Team No. 2: Arthur Andersen & Co. (National firm; 55% of total
contract)
Sanson, Kline, Jacomino & Co. (Hispanic firm; 20% of
total contract)
Sharpton, Brunson & Co. (Black firm; 20% of total
contract)
Watson & Co. (Black female owned firm; 5% of total
contract)
Team No. 3: Touche Ross & Co. (National firm; 45% of total
contract)
Grau & Company, P.A. (Hispanic firm; 30% of total
contract)
Thompkins & Company, P.A. (Black firm; 25% of total
contract)
The Law and Rules of the Florida Board of Accountancy, Department
of Professional Regulation, State of Florida, require that
governmental units negotiate with only one of the top three (3)
ranked CPA fir mas at a time.
It is recommended that the ranking of the firms be accepted and
that the City Manager be authorized to negotiate a contract with
the highest ranked team, formed by the CPA firms of Deloitte
Haskins & Sell; Sharpton, Brunson & Company, P.A.; and Verdeja,
Iriondo & Gravier, CPA's. Once the contract is negotiated it
will be submitted to the City Commission for final approval.
Deloitte Haskins & Sells has also indicated their willingness to
amend their participation in the contract to 50% instead of the
originally proposed 55%.
Although Deloitte Haskins & Sells had one of the highest
percentages of female and minority employment at the partner
level of all the proposing national firms, the Committee is
concerned with the overall statistics in this area for national
CPA firms, and therefore it intends to monitor this information
in the future to measure progress being made.
WAS
M
C.P.A.'s MAILING LIST
TOUChe Ross & Co.
Certified Public Accountants
100 Chopin Plaza
Miami, Florida 33131
Coopers & Lybrand
5959 Blue Lagoon Drive
I. Miami, Florida 33126
Grau & Company
21 S.E. 1st Avenue
6th Floor
Miami, Florida 33131
Bamberg & Lancella
9100 S. Dadeland Blvd.
Suite 1602
Miami, Florida 33156-7818
Thompkins & Company
520 N.W. 165th Street Rd.
Suite 205
No. Miami Beach, Florida 33169
Peat Marwick Main & Co.
One Biscayne Tower
Miami, Florida 33131
Arthur Andersen & Co.
One Biscayne Tower.
Suite 2100
Miami, Florida 33131
Deloitte, Haskins & Sells
AttnFrank Paredes
One Southeast Third Avenue
Miami, Florida 33131
Price Waterhouse
Southeast Financial Center
200 So. Biscayne Blvd
30th Floor
Miami, Florida 33131
V-
C.P.A's MAILING LIST
_. p8 2.
Sharpton, Brunson & Co.; P.A.
_- 6-00 Brickell Avenue
Suite 703
i
Miami, Florida 33131
Jordan Abella & Co.
Courthouse Towers
44 West Flagler Street
Suite 400
Miami, Florida 33150
Laventhol & Horwath
Two Alhambra Plaza
Coral Gables, Florida 33134
�s
Leslie De La Paz
2153 Coral Way
Suie 509 _
Mia i, Florida 33145
Caplan Morrison Brown & Co.
9795 S. Dixie Hwy
Miami, Florida 33156
Eisner & Lubin
777 Brickell Avenue
Miami, Florida 33131
Ernest & Whinney
2700 One Biscayne Tower
Miami, Florida 33131
Grant Thornton
One Brickell Square
Miami, Florida 33131
W. B. Koon & Co.
540 N.W. 165 Street Road
No. Miami Beach, Florida 33169
"354L
C.P.A.'s MAILING LIST
pg 3•
Pannell Kerr Forster
1221 Brickell Avenue
Miami, Florida 33131
Sanson Kline Jacomino & Co.
Suite 600
780 N.W. Le Jeune Road
Miami, Florida 33126
Seidman & Seidman
100 Southeast 2nd Street
Miami, Florida 33131
Sharpton Brunson & Co., P.A.
600 Brickell Avenue
Miami, Florida 33131
Verdeja Iriondo & Gravier, CPA
999kPonce De Leon Blvd
Coral Gables, Florida 33134
Arthur Young & Co.
Suite 1800
100 Chopin Plaza
Miami, Florida 33131
Mendez-Inau & Co.
8500 S.W. 8 Street
Miami, Florida 33144
A. Mendez-Insua
Cummins Accounting
5386 Biscayne Blvd.
Miami, Florida 33137
Marcia Cummings
C. R. Peruyera Accountants
2001 N.W. 7 Street
Miami, Florida 33125
rk
M
C•P.A.'s MAILING LIST
pg 4•
Elaine M. Tiegen & Co
7220 N.W. 36 Street
Suite 520
_ .
Miami, Florida 33166
L
Kathleen N. Reyes
_
"
3767 Alcantara Avenue
Coral Gables, Florida 33178
r'
Pichardo P.A.
1500 S. Dixie Hwy
w
Miami, Florida 33146
Abella & Company
F
44 West Flagler Street
—
Miami, Florida 33130
• Rosen & Filloy
25 ;A. E . 2 Avenue
Miami, Florida 33131
'
k
Esther Nicole Mantel
t
t
21311 N.L. 20 Avenue
North Miami Beach, Florida
Smith, Ortiz & Gomez
Attn: Alberto Manrara
130 Minorca Avenue
Coral Gables, Florida 33134
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-359-
e
i
CITY OF MIAMI, FLORIDA
REQUEST FOR PROPOSALS FOR
IMDEPENDENT AUDITING SERVICES
The City of Miami, Florida will accept and review proposals from
independent Certified Public Accounting Firms for engagement as
external auditors for the City of Miami as required by the City
Charter and Section 11-45 of the Florida Statutes.
The Firms shall be engaged to examine the City's Financial
Statements on a yearly contract up to a maximum of five years.
The first engagement shall be for the fiscal year ending
September 30, 1989, and each year the City shall have the option
to renew the engagement at the end of each year's services at the
same terms, covenants and conditions. The Firms shall evaluate
the fairness of presentation of the City's statements in
conformity with generally accepted accounting principles and
render an opinion thereon.
Such annual financial audits will include funds and groups of
accounts included in the available FY 87 Comprehensive Annual
Financial Report, except for the Following component units which
` ar audited under separate contracts, and are not the subject of
the RFP o
Miami Sporty; & Exhibition Authority (Special Revenue Fund)
M.S.E.A. Subordinate Obligation Note, (Debt Service. Fund)
M.S.E.A. Special Obligation Bonds (Debt Service- Fund)
Miami Sports Arena. (Capital Projects Fund)
Downtown Developriaent Authority (Special Revenue Fund)
Department of Off Street Parking (Enterprise Fund)
G & 0 Enterprise Fund
GESE Trust (Pension Trust Fund)
FIPO Trust (Pension Trust Fund)
The term "Firms" as used through this RFP is defined as the group
of Certified Public Accounting firms participating in the
engagement team. (See Section D of this RFP, Minority
Participation). •
A. GENERAL SPECIFICATIONS
Firms interested in submitting a proposal are encouraged to
address all specific points of information requested and
Firms promotional material may be included as additional
information but will not constitute a part of the "Proposal".
All specific points of information must be.addressed in order
to be accorded consideration.
CITY OF MIAMI
INDEPENDENT AUDIT PROPOSALS
page 2.
-
Interested'firms should prepare and submit ten (10) copies of
their proposal. The deadline for submission of proposals is
-
January 13, 1989, 4:00 p.m. Proposals should be addressed to
the "Miami Audit Advisory Committee, c/o City Clerk, City
Hall, 3500 Pan American Drive, Miami, Florida 33133". Firms
are encouraged to hand -deliver their proposals to the Office
of the City Clerk at the above address. Proposals delivered,
or postmarked after the above deadline will not be accepted
for consideration.
=;
Upon request made at the Office of the Director of Finance,
='
at the above address, the City will provide the following
documents to assist in preparation of proposals.
—a
1) Comprehensive Annual Financial Report - 1986-87
f
2) Annual Budget - 1988-89
3) Management letter and City's response - 1986-87
4) Single Audit Report - 1986-87
Inquiries relating to this proposal will be addressed in the
_■:
Proposers Conference scheduled. at 9:00 a.m. on November 30,
•
1988, at City Hall, 3500 Pan American Drive, Miami, Fl.
'433133•
It would be noted that the City's fiscal year concludes on
September 30. Therefore, other than the Annual Budget, 1988
materials are not presently available.
Proposers must designate the firms representative for
purposes of communications with the City.
B. PERFORMANCE SPECIFICATIONS
•
Please indicate in your proposal if you agree to meet or
Elm
exceed the following specifications. Note and explain any
exceptions you will take regarding them. Specifications
=!
listed here, and as amended or modified by your proposal will
be incorporated into the selection procedures and contract
awarded. The performance specifications desired are as
'i
follows:
1) The firms shall adhere to "Generally Accepted
Auditing Standards" applicable to governmental units.
{
-
9-3 �f)
c)
1, 4"
CITY OF MIAMI
INDEPENDENT AUDIT PROPOSALS
page 3
2)
The firms must be knowledgeable of Federal and State
statutes, reporting requirements under the Single
Audit Act of 1984 and OMB Circular A-128, GAO
standards, regulations and guidelines applicable to
municipalities in the State of Florida, and will
conduct the audit in accordance with these
uirements existing, or as may be pronounced during
Etat term
period or of this audit engagement.
3)
The firms shall express an opinion on the "General
Purpose Financial Statements". Information for the
combining . and individual fund statements and
schedules of the Comprehensive Annual Financial
Report will also be subject to the auditing
procedures applied in the examination for the general
purpose financial statements.
4)
Review of the system of internal accounting control
and internal administrative control to the extent
required by Generally Accepted Auditing Standards and
requirements of the Single Audit Act.
4
5)
Fulfill requirements of Section 10.557 of the Rules
of the Auditor General, including:
a) Preparation of Annual Financial. Audit
Report.
b) Issuance of Annual Management Letter to
inform the City of any b'deaknes es in the
system of internal control as uncovered by
their examination, and to make known their
recommendations which, if implemented,
would, in the Firms opinion, increase
efficiency, improve management and improve
internal control.
c) Preparation of Single Audit Report and
other necessary Federal and State Reports.
6) Assist in the preparation of required reports for
submission in order to attain a Certificate of
Achievement for Excellence in Financial Reporting.
CITY OF MIAMI
INDEPENDENT
AUDIT PROPOSALS
PAGE 4.
7)
The firms agree to schedule their audit work to
perform a substantial portion prior to year-end.
Field examination of the annual audit shall be
completed by December 31 and the opinion letter shall
be submitted no later than January 31 for each year
of the life of this agreement.
8)
The firms agree to maintain and make available their
working papers to any Federal or State agency upon
appropriate request through the City Manager and in
accordance with Federal and/or State legal
provisions.
9)
The firms agree to communicate with the City Manager
or designee, the Audit Advisory Committee, or the
City Commission as requested.
10)
The firms agree, if selected to negotiate a contract;
including performance specifications, staff positions
and individuals to be assigned to the audit, maximum
fee and individual staff hourly rates; for:
A one year period of time, with
A series of four, one-year options for first
consideration to renegctiate a contract, subject
to review and approval by the Audit Advisory
Committee and. the City Commis -Sion, up to a maximum
of four (4) additional years.
1 1 )
The firms agree, if ,selected to provide a fee
schedule for related work not covered under this
proposal, such as special reports and or reviews
related to debt issuances.
C. QUALIFICATIONS
The firms must be members of the American Institute of
Certified Public Accountants. Key members of the audit team
must be members of the Florida Institute of Certified Public
Accountants. Firms must be of recognized ability and
standing in the service of governmental units.
Proposals must include a response to each of the following
items in order that consideration be given.
89-
CITY OF MIAMI
INDEPENDENT AUDIT PROPOSALS
page 5.
1) Qualifications of firms
a.
Describe your firms' professional development
program, including the approximate number of
days of continuing education provided to
members of your firms. Also indicate the
number of days of specialized training in
governmental accounting and auditing as well
as in computer auditing received during the
last two years by personnel who will be
assigned to the City audit engagement.
Indicate all continuing education credits of
staff members assigned to this audit
engagement. Indicate compliance with
educational requirements promulgated by the
Auditor General.
b.
Describe the participation of your firms in
national or state government accounting/audit-
ing boards or, committees, during -,the last
three years. -
a.,
Describe the participation of your firers'
members in publications, books or articles,
concerning governmental f'inarfce, auditing or
accounting in the last three years.
d.
Describe your firm:>' quality c,ontr.ol pro(.,,ram
and procedures that (--,nrsurf u.i.th
your firms' ; and 1?I:CH. standar d .. Indicate
whether your fi.rras are in the aEC. Practice
Section and/or Private Companies Practice
Section of the Quality Control Program. If
membership in one of these sections has ever
been terminated, furnish complete details and
explanations.
e.
Describe your firms' (local office for
national, firms) experience in providing
accounting and auditing services to
governmental units.
f.
Describe your firms ability to apply EDP
auditing techniques.
89 -3 )9
/
NAM
CITY OF MIAMI
_
INDEPENDENT AUDIT PROPOSALS
- page 6.
litigation over $10,000,
g. Describe any censures,
suspensions,
WE
terminations,
reprimands, probations or similar actions
the
against any member of your firms by
Board of Accountancy in the past
Florida State
three (3) years.
h. Describe your firms' approach - to this audit i
- engagement. This should nclude at least the
following, in as much detail as possible:
i
Development of audit program
audit team and approximate
Organization of
percentage of time to be spent by each
to
employee classification to be assigned
this audit.
Names of individuals that will be assigned
to this contract, including partner and
manager, and percentage of their
involvement 'in this engagement. Any
f
substitution of key members of the audit
be approved by the City., Audit
t
�..: team must
Advisory Cominittee.
Information and assistance expected from
the City
Proposed schedule for the audit.
i
Use of internal audit staff and other City
staff.
i . Provide at leant (�) ref( r�e��ec� a � t�ith�irY2si)
(local o£'fi.ce' of nat ; onal
your firms
has audited the � overnmental area.
Describe experience with other governmental
units in assisting in obtaining and/or,
the GFOA Certificate of
maintaining
• Achievement for Excellence in Financial
Reporting.
2) Qualifications of Personnel Assigned
e a. Provide professional resume of personnel to be
assigned to this audit. Personnel assigned
�i based in local offices. This should
must be
include, at a minimum, the partner, the
manager and the in -charge accountants. Resume
should include:
-R9 )'S
CITY OF MIAMI
INDEPENDENT AUDIT PROPOSALS
page 7.
Formal Education
Supplemental Education
Experience in public accounting and/or
auditing
Experience in private business or
government
Experience in governmental auditing
Professional attainments, such as CPA
license and/or CIA awards, etc.
Membership on any national or state
governmental accounting/auditing boards,
committees, or associations.
b. Titles of books, articles, etc. published by
personnel to be assigned to this audit.
D. MINORITY PARTICIPATION/AFFIRMATIVE ACTION
Propposers must comply with City of Miami Ordinance No.
10062, "The Minority and Women Business Affairs and the
Procurement Ordinance of the City of Miami,. ---Florida"
which sets forth a goal of awarding at least 5.1% of the
City's annual expenditures to businesses owned by Blacks
(.17%) , Hispanics ( 17% ) , and Women ( 17%) . Additionally,
the proposers must agree that there tYi11 be no
discrimination as to race:, color, creed; national origin,
or handicap, in regards to their obligations, c•Fork and
services performed under the terms of this contrac"c,..
Proposers must state the extent to which i-oinori ties will
be represent=. d in fulfilling this contract should it be
awarded to the proposers. Proposers indicating intention
to fully comply with this requirement, who are unable to
associate themselves with qualified minority firms by due
date of proposals, and present evidence to that effect
will be allowed to associate themselves with such
minority firms , subject to the City's Audit Advisory .
Committee approval, and prior to the oral interviews
during the Selection Process of such Committee.
Attached as Exhibit A, to this Request for Proposals, is
a copy of City Ordinance No. 10062.
The proposers, by submitting a response to this
procurement request, agree to comply with executive order
No. 11246 entitle "Equal Employment Opportunity" as
amended by Executive Order No. 11375, as supplemented by
the Department of Labor Regulations (41CFR, Pat 60).
F3.9-3 59
15
CITY OF MIAMI
INDEPENDENT AUDIT PROPOSALS
page 8.
The proposer also agrees to present an affirmative action
plan that declares nondiscrimination on the basis of
race, color, religion, creed, national origin, sex, age,
or handicap, and that specifies target goals and target
dates to assure implementation of that plan.
E. EVALUATION
Proposals will be reviewed by the Audit Advisory
Committee which is appointed by the City Commission.
Proposals will be evaluated on the basis of
qualifications, responsiveness, related experience, and
WE
approach to audit. The Committee will request oral
presentations by firms selected as finalists.
WK
Evaluation criteria will include, but not be limited to,
Fft
the following:
A. Technical Approach
1. Agreement to meet or exceed all performance
specifications.
2. Proposed audit approach and methodology.
3. A b i.l. it y to communicate findings and
r e c o ir, in, e n d a0u- -1. o n s .
B. Qualifications of Firm
1. Staff training.
2. Professional organizations participation.
3. Quality control.
4. Experience.
5. Disciplinary actions.
6. Rotation policy.
7., References.
8. Firms history
CITY OF MIAMI
INDEPENDENT AUDIT PROPOSALS
page 9•
C. Qualification of Personnel
1. Percentage of firms staff certified.
2. Partner and Audit Manager have appropriate audit
experience with public agencies.
3. Proposed personnel have appropriate experience in
such audit areas as grants, computers, fixed
assets, indirect cost allocation, etc.
4. Level of raccounti g and auditinned personnel in
governmental
5. Participation in state and national professional
affairs.
D. Minority Participation/Affirmative Action
a. Composition of auditing team
b. Percent of work assigned to various team members
c. Previous experience in ,joint venturing with other
team members
d. Specific !affirmative Action data within each
firm .
E. AWARD Or CONTRACT
It is expected that, after review of the Committee's
recommendations, the City Commission will authorize the
City Manager to negotiate a contract with approved firms
in accordance with the specification set forth in this
document, the selected proposal, and Section 21A®21.007
of the Law and Rules of the Florida Board of Accountancy,
Department of Professional Regulation. This contract
will be reviewed by the Audit Advisory Committee and
submitted to the City Commission for approval.
CITY OF MIAMI
INDEPENDENT AUDIT PROPOSALS
page 10.
F. SELECTION PROCESS TIME TABLE
RFP released & advertised
November
15, 1988
Proposers conference
November
30, 1988
Proposals deadline
January 13,
1988
Audit Advisory Committee selection -
February
17, 1989
shortlist of finalists
Audit Advisory Committee selection -
February
20-24,
oral interviews
1989.
Recommendation to City Commission
March 10,
1989
of top three proposals
City Commission approval for
March 23,
1989
Negotiations
Contract negotiations completed
April 14,
1989
4 City Commission final approval
April 27,
1989
Contract signed
May 15, 1989