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Home My WebLink AboutR-82-0063RESOLUTION NO. 8 2 - 6 3 A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AGREEMENT, IN SUBSTANTIALLY THE FORM ATTACHED HERETO, BETWEEN THE CITY OF MIAMI AND COOPERS & LYBRAND, CERTIFIED PUBLIC ACCOUNTS, FOR AUDITING SERVICES TO THE CITY FOR THE FISCAL YEARS ENDING SEPTEMBER 30, 1982, TO 1986, WITH FUNDS THEREFOR NOT TO EXCEED $175,000 FOR ANY FISCAL YEAR DURING THE LIFE OF SAID AGREEMENT ALLOCATED FROM SPECIAL PRO- GRAMS AND ACCOUNTS, SPECIAL SERVICES, EXTERNAL AUDITING SERVICES. BE IT RESOLVED BY THE COMMISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to execute an agreement, in substantially the form attached hereto, between the City of Miami and Coopers & Lybrand, certified public accountants, for auditing services to the City for the fiscal years ending September 30, 1982, to 1986, with funds therefor not to exceed $175,000 for any fiscal year during the life of said agreement hereby allo- cated from Special Programs and Accounts, Special Ser- vices, External Auditing Services. PASSED AND ADOPTED this 28 1982. ATTEST: ';AFHG 0NGIE, CITY CL RK G PREPARED AND APPROVED BY: ROBERT F. CLARK DEPUTY CITY ATTORNEY day of JANUARY MAURICE A. FERRE M A Y O R AP ED AS TO FORM AND CORRECTNESS: GEOPItr F. KNOX, JR. CIT TTORNEY 3. CITY CoMbESSION M EE:TiM OF AU 3IM 82 -6 asmu"M Mo...............,a, 3 C:TY OF MIAMI. FLORIDA To. Howard V. Gary City Manager FROM 'JAck Eads Assistant to INTER -OFFICE ; 1EMORANIDUNI the City Manager January 19, 1982 rtL.E City of Miami Auditing Services It is recommended that the attached proposed resolution authorizing the City Manager to execute the professional services agreement with Coopers & Lybrand, Certified Public Accountants, for audit- ing services to the City of Miami for the fiscal years ending September 30, 1982 to 1986 be adopted by the City Commission. Background On December 15, 1981 the City Commission adopted Resolution No. 81-1076 approving the recommendation of the Audit Advisory Committee and authorizing the City Manager to undertake negotiations with Coopers & Lybrand to arrive at an agreement which is fair, competitive and reasonable, and directing the City Manager to present the negoti- ated agreement to the City Commission for ratification and approval. The attached Professional Services Agreement provides for Coopers & Lybrand to perform the annual audit of accounts and finances of the City of Miami as required by Section 28 of the Charter of the City of Miami and Section 11.45 of the Florida Statutes. Additionally, the recommendations of the City's consultant, Booz Allen & Hamilton, relating to improvements in the City's financial affairs suggesting the preparation of quarterly financial reports has been included as a requirement of the auditors in the agreement, and the auditors will assist the City in obtaining a Certificate of Conformance from the Municipal Finance Officers Association. Quarterly statements will commence with the quarter ending March 31, 1982. These interim financial statements will assist the City in developing procedures to eliminate numerous year-end adjustments and identify potential problems or delays in closing schedules on a timely basis. A written report of recommendations and pertinent comments arising from quarterly reviewsand year-end audit will be presented to the City Commission by the auditors. $2 -63 U A PROFESSIONAL SERVICES AGREEMENT This Agreement entered into as of the day of JAyvAR 1982, by and between the City of Miami, a municipal corporation of Dade County, Florida, hereinafter referred to as "the City", and Coopers & Lybrand, Certified Public Accounts, hereinafter referred to as "the Auditors". 10 WITNESSETH: WHEREAS,Section 28 of the Charter of the City of Miami, Florida, and Section 11.45 of the Florida Statutes require that the City shall provide annually for an audit of the accounts and finances of the City; and the preparation of quarterly financial reports. WHEREAS, the Auditors, as reflected by their statement of qualifications dated October 30, 1981, submitted to the City of Miami Audit Advisory Committee, incorporated herein and made a part hereof by reference, have expressed a desire to perform the required auditing services for the City. WHEREAS, the City Commission adopted Resolution 81-1076 authorizing and directing the City Manager to negotiate an agreement with Coopers & Lybrand to provide auditing services to the City of Miami. NOW, THEREFORE, the City and Auditors agree as follows: 1. TERM: This Agreement shall commence February 1, 1982, for the purpose of auditing the books, accounting records, and finances of the City for the fiscal years ending September 30, 2982 through 1986. 0 co .7 r LhASIC SERVICES: W �a Ta) The Auditors shall examine and report on the `-� vinan a& ostatements and certain supplemental financial Ld _ edtAes`- f the funds and account t� groups of the City as listed is Exhibit I attached hereto. w (b) The audit shall be conducted in accordance with" generally accepted auditing standards as established by the American Institute of Certified Public Accountants (AICPA) and as supported by the National Council on Governmental 1 A* Accounting (NCGA). These auditing standards and procedures include recommendations discussed in the AICPA's publication "Audits of State and Local Governmental Units", as amended. (c) The Auditors shall express, if possible, an unqualified opinion on all "General Purpose Financial State- ments" and other combining individual financial statements as set forth in Statement 1 and in Statement 2 by the National Council on Governmental Accounting (NCGA). The City should be expected to prepare, on a timely basis, such financial statements in conformity with generally accepted accounting principles as well as related information including, but not limited to, a transmittal letter, schedules, and supplementary statistical schedules that will constitute a portion of the "Comprehensive Annual Financial Reports" but not part of ti.e audit examination scope. The Auditors shall assist the City in obtaining a Certificate of Conformance from the Municipal Finance Officers Association. (d) Where applicable, the Auditors, as the City's principal auditors, shall coordinate their work with any other auditor doing supplemental work for the City and the Internal Auditing Division of the City. The Auditor agrees to utilize the City's staff to perform all work of an accounting and clerical nature, consistent with generally accepted auditing standards within the limits of City employees qualifications and availability. The City shall be responsible for the compilation and typing of the City's financial statements, annual report, and other financial data. It is understood that City personnel will be responsible for the preparation of all schedules, analyses and pro -forma workpapers requested by the Auditors. (e) The Auditors agree to review the systems of internal accounting control to the extent.necessary under gen- erally accepted auditing standards to determine the nature, extent and timing of other auditing procedures. The Auditors will also review internal administrative controls in selected areas on a rotating annual basis. -2- 82-63 3 .W '44 (f) The Auditors shall, during the terms of this Agreement, prepare and issue reports (management letters) relating to financial compliance with covenants of Trust Agreements, laws and regulations, efficiency and economy of operations, systems of internal control, and operating and management procedures. These reports shall include findings and recommendations arising from their regular audit procedures and not from special studies. The Auditors shall review sand reports in draft form with the Audit Advisory Committee, the City Manager, the Finance Director, and Internal Auditor of the City. (g) Commencing with the quarter ending March 31, 1982 the Auditors agree to review the closing procedures and prepar- ation of the December 31, March 31, and June 30 interim financial statements for the purpose of assisting the City in developing procedures to eliminate the necessity for numerous year-end ad- justments and identify potential problems or delays in closing schedules on a timely basis. The Auditors will issue a written report of comments and recommendations arising from this review. The purpose of this review is to be of assistance to the City and is not intended to be a review of interim financial information in accordance with AICPA Statement on Auditing Standards No. 36, "Review of Interim Financial Information". (h) The Auditors agree to schedule audit work to perform a substantial portion prior to year-end and to coordinate with the following schedule of interim and final closings of the City's books and records: First quarter closing as of December 31, with City report available by January 31. Second quarter closing as of March 31, with City.report available by April 30. Third quarter closing as of June 30, with City report available by July 31. The City shall close its books by the tenth business day of each month following the quarter closings set forth above, and by November 1 for each fiscal year of the life of this agreement. The City shall provide the Auditors with a working trial balance as of September 30 by November 1 and a preliminary draft of the financial statements by December 1. -3- 82 -68 L�VUT'bTm TT -ti Field examination of the annual audit shall be essentially completed by December 31, and the opinion letter shall be submitted no later than January 31. All remaining work contemplated under this agreement shall be completed no later than February 28 for each fiscal year of the life of this agreement. The Auditor's report of comments and recommendations with respect to the March 31, 1982 quarter shall be submitted by June 1, ±982. Thereafter, such reports with respect to the December 31, March 31 and June 30 quarters shall be submitted by June 1, 1982. Thereafter, such reports with respect to the December 31, March 31 and June 30 quarters shall be submitted by February 15, May 15, and August 15, respectively. (i) It is recognized by the parties that the Auditor will need an auditing period after receipt of the Working Trial Balance and supporting schedules. The City agrees to grant the Auditors an extension of time, if requested by the Auditors, equal to the number of days after November 1 that the Working Trial Balance and requested schedules are delivered by the City to the Auditors; and/or equal to the number of days after December 1 the preliminary draft of the financial statements is delivered to the Auditors by the City. Similar extensions may be granted with respect to the December 31, March 31, and June 30 quarterly closings. (j) In the event that the Auditors fail to meet the established time schedules stated herein, without an authorized extension of time, the City at the discretion of the City Manager, and at the Citv's option, may reduce the agreed upon compensation due the Auditors by one-fourth of one percent per day for each day beyond the scheduled due date. 3. EXTRA WORK: The Auditors, upon receipt of a.written request from the City Manager or his designee, shall perform such additional work as may reasonably be required, including, but not limited to, special revenue audits, reviews of the Internal Auditor's department, reviews of Official Statements for offerings of securities by the City, meetings with Underwriters and attor- neys in connection with offerings of securities and other -4- 82-63 • EXHiblT II requested services. 4. WORK PAPERS: For a period of three (3) years after completion of any work provided herein, the Auditors shall make its work papers, records, and other evidence and documents relating to such work available to its successor and the City, including its designees. The City and its represen- tatives shall be entitled, at any time during such three (3) year period, to inspect such documents and to reproduce same at the City's expense, for which provisions will be made at the time the need for reproduction arises. Such access, inspection, and reproduction of working papers, records, and other documents may be restricted by the Auditors as to that portion of working papers which pertain to their auditing procedures and the nature and extent of their audit testing. 5. COMPENSATION: (a) The City shall pay the Auditors, as compensation for the services required pursuant to Paragraph 2 hereof, a fee not to exceed $175,000 for any fiscal year during the life of this agreement. Upon the request of the Auditors, and if there is a significant increase in the size, complexity or scope of the audit described in this agreement, the City Manager at his, descretion,may review the compensation paid the Auditors. (b) The Auditors shall be reimbursed for travel, per diem and related expenses. Reimbursement shall be limited to amounts allowable under Chapter 112.061, Florida Statutes. All expenses relating to travel shall be approved in advance by the City. . (c) Compensation to the Auditors for extra work per- formed pursuant to Paragraph 3 of this Agreement shall be based on their prevailing standard hourly rate schedules, and shall be subject to the provision of said Paragraph (b). 6. GENERAL: (a) It is mutually agreed by both Parties that the -5- 82 -63 EXHIBIT II Auditors shall assign 57h% of the compensation for Basic Services outlined in Section 5 herein, (net of Auditors' Expenses), to the recognized minority -owned CPA accounting firms of Sanson Kline, Jacomino & Company 42h% and W. Bernard Koon, C.P.A. 15%. It is the responsibility of the minority - owned CPA firms to provide the necessary manpower commensurate with the compensation assigned. This Agreement, or any interest herein, shall not be otherwise assigned, transferred, or otherwise -encum- bered, without prior written approval of the City Manager. (b) The Auditors shall comply with the provisions of any and all Federal, State, County, and City Orders, Statutes, Ordinances, Rules, and Regulations which may pertain to the work required under this Agreement, including specifically those which pertain to "Conflict of Interest" and "Employment Discrimination"., TERMINATION OF AGREEMENT Either party may terminate this Agreement upon thirty (30) days written notice to the other party; subject, however, to the reservation of the City's right to terminate this Agreement immediately, with or without notice, upon the determination of the Finance Director of the City that the services of the Auditors.are not satisfactory, and upon communication of an appropriate recommendation to the City Manager for disposition. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed by their respective officials thereinto duly authorized, this the day and year first above written. Witnesses: Attest: COOPERS& LYBRAND CITY OF MIAMI, a municipal corporation of the State of Florida By: Zfr�2 City Man er APPROVED AS TO FORM AND CORRECTNESS: -6- ttorney 82-63 EXHIBIT II R We, the minority -owned CPA firms, hereby agree to accept the responsibility to provide the necessary manpower commensu- rate with the compensation assigned, as per Paragraph 6(a) of the "Professional Services Agreement" entered into as of the day of J-,4,V1)4A V , 19 82, by and between the City of Miami and Coopers & Lybrand. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed by their respective officials, thereinto duly authorized, this the day and year first written above WITNESSES: 1 Attest: APPROVED AS TO FORM AND SANSON, KLINE, JACOMINO & COMPANY W. BERNARD KOON, C.P.A. 1/. CITY OF MIAMI, a municipal corporation of the State of Florida WA�By 112 Y PZ C' M na er CORRECTNESS: /I tc Cigt 82-63 ■: FUNDS TO BE INCLUDED UNDER BASIC SERVICES 1. General Fund 2. Special Revenue Funds 3. Debt Service Funds 4. Intragovernmental Service Funds 5. Trust and Agency Funds 6. Enterprise Funds 7. Long" Terin Debt Group of Accounts 8. General Fixed Asset Group of Accounts 9. Capital Projects Funds 10. Special Obligation Bond Fund i 82-63 i