HomeMy WebLinkAboutAttachment AAttachment A
Performance Requirements / Scope of Work
A. The 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 -
Profit Organizations, Office of Management and Budget
6) United States Single Audit Act of 1984
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 in -relation 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 conducted in accordance with generally accepted
auditing standards 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 Banking and Finance to assure consistency with the CAFR.
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
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of Florida Single Audit Act shall be delivered to the City no later than March
1st following the end of the fiscal year under audit; except for fiscal year
ending September 30, 2007 to which the date shall be March 30, 2008. These
letters shall be included in the Comprehensive Annual Financial Report by the
City.
G. The auditor shall submit, not later than March 15th following the end of the
fiscal year under audit, a full and complete management letter which shall
identify any management 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 15`h following the end of the fiscal year under audit; except for the
audit for the fiscal year ended September 30, 2007, to which the final
fieldwork date shall be February 28, 2008.
For items F and G above, this is conditioned upon the City of Miami closing its
accounting books and records, including the recording of all significant journal
entries, and preparing a complete and accurate schedule of expenditures for
federal awards and state financial assistance, and making available its books and
records to Provider for audit by December 1st of each year of the term of the
agreement. Any delays in the City of Miami's closing its accounting books and
records will extend the delivery date, referred to above, proportionately.
H. The Auditor agrees to have the audited financial statements of the second year
of the contract term submitted as part of their annual peer review program at
the expense of the City. Additionally, the City reserves the right to request
that the audited financial statements of any of the two optional extensions of
contact years also be submitted for peer review. The results of these peer
reviews shall be communicated back to the City no later than ten (10) business
days upon receipt of the completion of the review process.
I. The auditor shall provide the City with sufficient letterhead to print 100
original copies of all required letters for the Comprehensive Annual Financial
Report.
J. The partner in charge of the audit and the audit manager or other CPA
assigned to the audit agree to communicate with City Manager or designee,
the Audit Advisory Committee, or the City Commission, as deemed
necessary.
K. The auditor shall assist 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.
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c. Shall review applications for annual Certificate of Achievement for
Excellence in Financial Reporting.
d. Overall review including layout, design, and suggested improvements.
L. Timeliness is critical in the performance of the audit. The auditor should
coordinate with the Finance Director and endeavor to accomplish the audit in
a phased in approach 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.
M. 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 information and respond if necessary. Final audit
adjustments shall be submitted to the City no later than February 15th
following the end of the fiscal year under audit.
N. The City may issue one or more official statements for the sale of bonds
during the term of the Contract. The official statement will contain the basic
financial statements or an extraction from the CAFR. The auditor shall be
required to issue, upon request, "comfort letters" and other documents
necessary to issue the bonds.
O. 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. Working
papers will also be made available for examination, at no charge, or
duplication, at a reasonable charge, to subsequent auditors engaged by the
City.
P. The auditors agree to notify the City immediately if any regulatory or other
government agency requests a review of the audit workpapers concerning the
City or any other government client audited by the audit firm.
Q.
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.
R. 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".
S. 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.
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In the event that a firm has been formed so recently that no peer reviews have
been undertaken, the Proposer should state so in the response to the 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.
T. 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.
U. 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.
V. The Successful Proposer shall be required to provide additional services, not
specifically addressed above and if approved by the City, to other City
departments, agencies, Boards, Trusts, etc. who may, from time to time,
require auditing services. Services may be contracted with that entity(s) at
time of need, and a separate Contract executed for provision of said services.
Successful Proposer is not guaranteed to provide any additional services as
entity(s) reserves the right to secure external auditing services from other
providers, or from sub -consultants of Successful Proposer.
The City reserves the right to add, delete and/or modify services to the scope of work
when required by the City at any time throughout the duration of the contract.
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