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HomeMy WebLinkAboutProposal - Crowe Horwath LLPCrowe Horwath. Proposal to Provide External Auditing Services May 13, 2014 RFP No. 439312 Submitted to: Mr. Todd Hannon, City Clerk City of Miami 3500 Pan American Drive Miami, Florida 33133 Submitted by: John C. Weber, Partner Crowe Horwath LLP 401 East Las Olas Boulevard, Suite 1100 Fort Lauderdale, Florida 33301-4230 Office 954.202.8600 Cell 630.254.6567 Fax 954.202.8639 john.weber@crowehorwath.com FEIN: 35-0921680 The Unique Alternative to the Big Four® 1. Cover Page Audit I Tax I Advisory I Risk I Performance ORIGINAL External Auditing Services City of Miami 2. Table of Contents 3. Executive Summary 4. Proposers Qualifications and Experience 1 5. Technical Qualifications 17 A. Ability and Experience to Perform Required Services 17 Quality Control Review Process 22 B. Audit Approach 29 Transition Plan 29 Audit Approach 29 Single Audit Approach 36 6. Fees for Services 43 Flat Fee for Five Year Term 43 Year 1 Audit Fee 43 Rates for Additional Professional Services 44 Appendix A: Resumes 47 Appendix B: Letters of Reference 73 Appendix C: State of Florida License 74 Appendix D: Peer Review 75 Appendix E: Required Forms 76 f Crowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP Crowe Horwath LLP is an independent member of Crowe Horwath International, a Swiss verein. Each member firm of Crowe Horwath International is a separate and independent legal entity. Crowe Horwath LLP and its affiliates are not responsible or liable for any acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath International or any other member of Crowe Horwath International. Crowe Horwath International does not render any professional services and does not have an ownership or partnership interest in Crowe Horwath LLP. Crowe Horwath International and its other member firms are not responsible or liable for any acts or omissions of Crowe Horwath LLP and specifically disclaim any and all responsibility or liability for acts or omissions of Crowe Horwath LLP. Crowe Horwath. Crowe Horwath LLP Independent Member Crowe Horwath International 401 East Las Olas Boulevard, Suite 1100 Fort Lauderdale, Florida 33301-4230 Tel 954.202.8600 Fax 954.202.8639 www. crowehorwath. com 3. Executive Summary May 13, 2014 Mr. Todd Hannon, City Clerk City of Miami 3500 Pan American Drive Miami, Florida 33133 Dear Mr. Hannon: Crowe Horwath LLP ("Crowe"), along with our subcontractor, Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP ("SKJT&G") appreciate this opportunity to present our firms to the City of Miami (the "City"). We are proposing to provide audit services to the City for the fiscal years ending September 30, 2014, 2015, and 2016, with the option of auditing the financial statements for each of the two subsequent fiscal years. As outlined in the following proposal, we will value the City as an important client and will provide high quality service, aimed at exceeding your expectations on a long-term basis. We are committed to performing the work outlined in the Request for Proposal ("RFP") according to the agreed upon schedule. Why Choose the Crowe Team? Our Team: We have assembled a team to serve the City based on their experience in providing audits to government organizations and their knowledge of the community. We have included an extensive amount of partner level involvement in our audit plan to insure, not only the subject matter expertise, but the level of client service that the City expects. Industry Experience: We have significant experience in working with over 400 government entities and we have specific experience auditing large Cities as we have demonstrated in our proposal. We invest in maintaining high quality audit services and industry expertise with a dedicated Public Sector Services Team of over 200 individuals. Summary of Work to be Performed We will issue a report on the audit of the financial statements for each of the three (3) fiscal years. The report shall contain an expression of the auditor's opinion as to whether the information contained in the financial statements is presented fairly and in conformance with accounting principles generally accepted in the United States of America. Further, the auditor's opinion, with respect to the supplemental financial information presented in the combining and individual fund financial statements and schedules shall also make a reference as to their fairness in all material respects in relation to the basic financial statements. The pension funds and discretely presented component units are not part of this engagement. We will also issue a report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. We will also issue a report on compliance with requirements applicable to each major Federal program and State projects and on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. We will also issue a management letter. Minimum Qualifications Crowe is in good standing to practice before the Public Company Accounting Oversight Board ("PCAO B"). -i- Mr. Todd Hannon, City Clerk City of Miami Page ii Crowe and SKJT&G have an active registered corporation with the State of Florida Department of State, Division of Corporations. r> The lead auditing partner John Weber is a certified public accountant of the State of Florida, pursuant to Florida Statute 473.309. Crowe and SKJT&G will have a minimum team of 8 full-time certified public accountants (CPA's) assigned to the City of Miami audit. Like all large professional service firms, Crowe Horwath LLP is subject to claims from time to time for a variety of reasons, and we occasionally receive notice of claims. Crowe has pending litigation, but it is Crowe's policy not to discuss any specific matters. However, in the view of management; there are no current claims that will result in significant losses to Crowe. Crowe has no pending or threatened litigation, administrative or regulatory proceedings or similar matters that could affect its ability to perform the required services. Crowe has not been the target of any criminal investigation, indictment, prosecution or other proceeding and there are no known felony convictions of any owners, officers, or primary partners of Crowe. We understand the need for continued reporting of status changes related to this area. t At this time Crowe Horwath LLP and Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP does not have any conflicts of interest with the City. Additionally, Crowe and SKJT&G nor any individual member, officer, or stockholder of Crowe is in arrears or in default of any debt or contract involving the City (as a party to the conflict or otherwise), nor have failed to perform faithfully on any previous contract with the City. Crowe's office in Ft. Lauderdale and Tampa, Florida, provides comprehensive accounting, tax and business -related consulting services to a variety of industries. Through these offices we are able to provide the City with prompt and efficient services in accord with the specifications and terms and conditions of this RFP. Crowe is currently in the process of opening a Miami office. It is anticipated that the new Crowe Miami office will open in late summer or early fall of this year. G -;, Crowe and SKJT&G have provided letters of references in Appendix B. >: As requested in the Section 4.1 Submission Requirements, Crowe and SKJT&G have provided resumes in Appendix A. Authorized Personnel This proposal is being submitted by John. C. Weber, who is authorized to represent the firm, is empowered to submit the proposal and is authorized to negotiate and execute a contract with the City. Contact Information: Office Phone: 954.202.8600 Cell Phone: 630.254.6567 Together Crowe and SKJT&G are fully qualified to provide quality and cost-effective services to the City of Miami. Equally important, we have a strong desire to assist you, we want your business, and believe that we can add value to you by completing the audit in a timely manner and by actively seeking ways to assist you in improving your operations. Again, we appreciate this opportunity to present our firm for your consideration, and if selected, will give the City our closest attention. Should you have any questions or require additional information, please do not hesitate to contact me. Our entire team is looking forward to providing high -quality, timely and cost- effective services to the City of Miami. Our proposal remains valid for 180 days. Should you have any questions or require additional information, please do not hesitate to contact me directly at 954.202.8600(office) / 630.254.6567(cell) or john.weber@crowehorwath.com. Sgpcre John C. Weber Partner External Auditing Services City of Miami 1 4. Proposers Qualifications and Experience a) Describe the Proposer's organizational history and structure, provide a brief history of the firm, including years Proposer/firm has been in business providing a similar service(s), and indicate whether the City has previously awarded any contracts to the Proposer/firm. About Crowe Horvath LLP Founded in 1942, Crowe Horvath LLP (www.crowehorwath.com), a Limited Liability Partnership, is one of the largest public accounting and consulting firms in the United States. Under its core purpose of "Building Value with Values®," Crowe uses its deep industry expertise to provide audit services to public and private entities while also helping clients reach their goals with tax, advisory, risk and performance services. With a total of more than 3,000 personnel, Crowe and its subsidiaries have offices coast to coast. The firm is recognized by many organizations as one of the country's best places to work. Crowe serves clients worldwide as an independent member of Crowe Horwath International, one of the largest global accounting networks in the world, consisting of more than 150 independent accounting and advisory services firms in more than 100 countries around the world. Position in the Industry: One of the Nation's Largest Public Accounting and Consulting Firms Crowe is one of the largest U.S. public accounting and consulting firms (based on U.S. net revenue) according to the 2014 Accounting Today Top 100 Firms List. Office Locations Crowe serves clients coast to coast from the following office locations: 0. California I Los Angeles, Orange County, Sacramento, San Francisco • 4 District of Columbia I Washington D.C. L Florida Fort Lauderdale, Tampa, Lakeland NI Georgia 1 Atlanta rx Illinois 1 Chicago, Oak Brook, Springfield Indiana I Elkhart, Ft Wayne, Indianapolis (2), South Bend IR Kentucky 1 Lexington, Louisville Tal Michigan I Grand Rapids • New Jersey I Livingston LI New York I New York EI Ohio I Cleveland, Columbus FWD Tennessee I Knoxville, Nashville 7q. Texas I Dallas Areas of Specialization Crowe is unique in that we have dedicated teams focused on key industry issues, including: f° Crowe Horwath. © Copyright 2014 Crowe Horwath LLP TiConstruction Financial Services Ri Food and Commodities Pi Government zi Healthcare Higher Education Manufacturing and Distribution Pi Not -for -Profit 7,1 Private Equity Groups Retail Dealership www.crowehorwath.com External Auditing Services City of Miami 2 About Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP was originally founded and incorporated as Sanson, Kline, Jacomino & Company, LLP ("SKJ") on January 7, 1978 by two former Partners and one former Manager of Alexander Grant & Co. (currently known as Grant Thornton, LLP). On October 1, 1998, SKJ became a limited liability partnership. The firm has provided professional services to numerous governmental, not -for -profit and commercial entities for over 34 years, including accounting/bookkeeping, auditing, consulting, tax, and other assurance and advisory services. On October 1, 2011, the firm merged with Gamarra & Associates, LLC, and changed its name to Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP ("SKJT&G"). The firm's assurance and advisory practice (which consists of accounting/bookkeeping, auditing, consulting and other advisory services) is composed 55% of engagements in the governmental and not - for -profit industry, and 45% in the commercial industry, including real estate developing, construction, banking, manufacturing, import/export, retail, and services fields. SKJT&G is licensed and authorized, as a CPA firm to perform audit, accounting, and tax services, by the State of Florida Board of Accountancy and is in good standing with the State Board. SKJT&G is a member of the American Institute of Certified Public Accountants Private Companies Division for CPA firms. All of our partners and all eligible employees are members of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants, and are in good standing with such Institutes. Also, SKJT&G is a Minority Business Enterprise and/or Small Business Enterprise certified by numerous governmental agencies, including Miami -Dade County, The School Board of Miami -Dade County, and the State of Florida. SKJT&G has been performing audits of governmental entities for over 30 years, including audits of municipalities, counties, special districts, school districts, and quasi -governmental agencies. Specifically, SKJT&G has been the subcontract auditor for the City of Miami audit engagement for the fiscal years 1996 through 2000 and 2003, and fiscal years 2007 through 2013. Previous Contracts with the City of Miami Crowe Crowe has not been awarded any contracts previously from the City of Miami SKJT&G SKJT&G was previously awarded contracts by City of Miami Component Units including: Bayfront Park Management Trust City of Miami Community Redevelopment Agencies (SEOPW, Omni and Midtown CRAs) Coconut Grove Business Improvement District Miami Sports & Exhibition Authority b) Provide a list of all principals/owners and directors. Crowe Crowe Horwath LLP ("Crowe") leaders include Mr. Charles Allen, Chief Executive Officer and Mr. Fred Bauters, Chief Risk and Chief Administrative Officer. Mr. Allen was elected as CEO effective April 1, 2007, but has been with Crowe since 1975. Mr. Bauters was appointed Chief Risk Officer effective April 1, 2007, and assumed Chief Administrative Officer duties in 2011, and he has been with Crowe since 1976. The Chief Executive Officer is responsible for developing and implementing plans and strategies approved by Crowe's Executive Committee. In addition, the Chief Executive Officer acts as a communication link between the Executive Committee and partners selected to serve as managers of Crowe's Business Units (BUs). We have provided a list of all principals/owners and directors under a separate cover, marked confidential. Crowe Horvath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 3 SKJT&G The four principle Partners of the firm are as follows: Name Tony Jacomino, Tax & Managing Partner oc=:Ass Jane, Alfredo Jacomino, Tax Partner. r1a 126; marrarConsultmg & Ad 1.§psyPa1 In addition to the Partners above, the Firm consists of 11 other professional staff composed of: Years of Experience Classification Directors / Managers Su®ervsorst//Senio s Staff Total Number c) Provide detailed, relevant auditing experience of firm for at least three (3) years, particularly governmental auditing experience. include any municipal audit experience including utility and grant audits. Crowe Government Experience To demonstrate the depth of our government audit experience, we have provided the following sample listing of our governmental municipal clients in Florida. Clients Broward County leounty. Sheriff City of Coral Springs a Delano City of Ft. Lauderdale .` City o amp City of Tarpon Springs Florida State Board of Administration ,erLake and Jew Mass Trans ©is r e Miami Dade County Transportation Pine la e ty Inc all C nos ifuf or a Officers Port Everglades Crowe Horwath. C� Copyright 2014 Crowe Horwath LLP A=Audit C=Consulting 1=Internal Audit www.crowehorwath.com A-133 Audit GFOA Award External Auditing Services City of Miami 4 Clients Lakeland Linder Airport f Laudero a=ollyww oodtemational_ coward Goun Cro p Audit FF_on Fort Lauderdale Executive Airport (Municipal) A=Audit C=Consulting 1=Internal Audit Relevant Experience The following is a sample listing of our utility audit experience: Client Name City of Lakeland,: Florida of akelane Florid - City of Lakeland, Florida .< BrowardCounty, Florida Pinellas Coun Pinellas County, Florida A-133 Audit Type of Utility Electric Wastewater Sewer 'Waft ampa Florida City of Tampa, Florida City of F Lautlere ale City of Ft. Lauderdale Wastewater Sewer GFOA Award SKJT&G SKJT&G professionals have substantial experience in auditing not -for -profit and governmental entities in accordance with auditing standards generally accepted in the United States of America, Audits of Non-profit Organizations, Government Auditing Standards, Chapter 10.650, Rules of the Auditor General, and the preparation of financial statements in accordance with such standards, and GASB pronouncements, statements and interpretations. In addition, they have, many years of experience in auditing Federal and State grants in accordance with OMB Circular A-133 (Federal Single Audit) and Section 215.97, Florida Statutes (Florida Single Audit). Their professionals attend continuing professional education specifically geared to single audits on an annual basis to ensure that we are up- to-date on all single audit related issues. SKJT&G experience comes from auditing municipalities, counties, special districts, school districts, quasi -governmental agencies and non -profits. As previously mentioned, SKJT&G has been the subcontract auditor for the City of Miami audit engagement for the fiscal years 1996 through 2000 and 2003, and fiscal years 2007 through 2013. On the following page is a select list of governmental and non-profit audit clients that SKJT&G has been engaged in the last three years, either in the capacity of primary auditors or subcontract auditors: A Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 5 Not -for -profit and Governmental Audits Alzheimer's Association SE FI. Chapter, Inc..' Bayfront Park Management Trust Big Five Club, Inc.: Boynton Beach Community Red. Agency, Catholic Charities Legal Services, Inc. City of Hialeah, Florida City of Miami, Florida City of Miami Community Red. Agencies Coconut Grove Business Improvement District The Development Research Center, Inc. First Call For Help of Broward, Inc. Foundation For Human Rights in Cuba, Inc. Hialeah Technology Center, Inc. Kristi House, Inc, Latin Chamber of Commerce of USA, Inc. Miami Coalition for the Homeless, Inc. ` Miami -Dade County Aviation Department Miami -Dade County General Segment Miami -Dade Expressway Authority Miami -Dade Transit Miami. Sports & Exhibition Authority North Miami Community Red. Agency The Ophthalmology Research Foundation, Inc. Public Health Trust School Board of Miami -Dade County School District of Palm Beach County Single Audits 1 Grant Audits s . .: --- Boynton Beach Community Red. Agency City of Coral Springs, Florida a Ti City of Hialeah, Florida City of Miami, Florida v:. City of Pompano Beach, Florida Kristi House, Inc. Latin Chamber of Commerce of USA, Inc. Miami -Dade County Aviation Department Miami -Dade County General Segment Miami -Dade Expressway Authority Miami -Dade Transit Public Health Trust School Board of Miami; Dade County School District of Palm Beach County d) Provide copies of resumes and describe meaningful governmental auditing experience of partners, managers, key staff members, and other supervisory staff assigned to the City's account including names and overall work to be performed. The City reserves the right to contact any reference as part of the evaluation process. Crowe has built its reputation on close senior -level involvement and maintaining a strong client relationship. The ultimate success of our client relationships is largely attributable to one key component — our people. The proposed engagement team is well qualified to provide quality, timely, and personalized services to you. We have also structured our engagement team with extensive partner involvement. Crowe has built its reputation on close partner involvement and maintaining a strong client relationship. You will find our average partner -to -staff leverage ratio is higher than most other firms. By having partners involved in the daily execution, we reduce the time required to respond to accounting issues and thereby close the expectation gap. We are able to achieve this leverage by making significant investments in technology, uniform platforms and methodology, investments that allow us to work smarter and more efficiently. A Crowe Horvath. © Copyright 2014 Crowe Horwath LLP www. croweh orwath, com External Auditing Services City of Miami 6 The work that we will perform will be conducted in a timely, planned and orderly manner, without the uncertainty and confusion associated with a delayed, last minute performance. The proposed team takes pride in their client service ethic and in responding promptly to client inquiries. Their policy is to check voice mail throughout the day and return phone calls usually on the day received or within 24 hours at the latest. Likewise, they are typically able to access e-mail even when out of the office and respond promptly. Your Engagement Team is available to address your needs and concerns. An overview of how we plan to structure your engagement team is as follows: Kevin Smith National Government Audit Partner Subject Matter Specialist Aazan St. Rose Audit Sr. Manager Saadia Rauf Senior Staff John Weber Engagement Partner Corinne Ahrend Audit Manager Additional Local Office Engagement Staff As Needed Crowe Horwath. @ Copyright 2014 Crowe Horwath LLP Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP Richie Tandoc Matthew Geerdes Audit Sr_ Manager John Shumaker Senior. Staff Additional Local Office Engagement Staff As Needed www.crowehorwath.com External Auditing Services City of Miami 7 John Weber, CPA Aazan St. Rose, CPA Jeffrey Palgon, CPA,CISA Saadia Rauf, CPA Role Experience Engagement Partner: ` Mr. Weber has over twenty three years of experience Responsible for the focusing his entire career in providing assurance and Engagement and consulting services to public sector clients including Issuance of Reports government, college anduniversity and non-profit organizations. Mr. Weber has also served as Crowe's national partner in charge of the governmental audit practice and is a member of the United States Comptroller General Advisory Council on Government Auditing Standards. audit S:enioplanagei IT Senior Manager A Crowe Horwath. ©Copyright 2014 Crowe Horwath LLP Smitt assaapp xima eyent yeaars'o experience vidin nddvs nd$ rnAaIoCcePK sta e aaisprian vrrenalento anfo : rdofxot thelhtgeCedcaonrdusecew� g=federarawar --Y�;-As_Sm s en r h rTer'Lo GovernmentaEePanelp Mr. St. Rose has over eight years' experience servicing governmental clients with complex accounting issues, including issues involving complex financial instruments, derivatives and hedging, variable interest entities and leases. _Gee-rdes has overdw�e ve yearskofex enenc eigtpu accoannti gprovyidi g audit ng and sulting�sennces t govemme tal andtnotforprofit organization , Ali Mr. Paigon serves as an IT project manager for Crowe's attestation clientele, performing Information System's general and application controls and coordinating and completing client Information System General and Application controls SAS 70 examinations, IS General Controls, and other information security reviews. M Ahrend- has erf ear of{publi accoun in experience n the area gn mental an o o profitaccountin' has rainingfand'ex errence in�financta(¢co ®Ranee, and ai audit Mr. Boucaud specializes in IT audits within the governmental, financial institution, diversified financial, healthcare, insurance and information technology industries as well as organizations with in-house systems providing audits of general controls, application controls, and related special consulting services. :Mr Shumaker hassnet ears ofexpertence i the;Auditan Consul r elatedFAecoun ing fieidMrhumaker>has experience the governig ere ucaon -- constr c ion and a Ufactu tnrg ni dciis vies Ms. Rauf is an audit senior staff in the firm's Public Sector Services group. She has three years of public accounting experience in the areas of not -for -profit and governmental auditing. www.crowehorwath.com External Auditing Services City of Miami 8 Role Key Personnel Experience pro}ft anguern s enta .s fSKJT&C assuranc o i specialization the no, chasgouer ,8 ears of ex®erepee se ng o art, er- clients �ry praetie ewith a for ro t-a d.gouepille fa noisy Carole Stewart- Subcontract Director ' Ms, Stewart -Heron has over 17 years of publicaccounting Heron, CPA, CFE and consulting experience. She is SKJT&G's most seasoned employee, with her entire public accounting career dedicated to serving governmental, not -for -profit, and various commercial organizations:. Oran es has over ai"s o pub rcl accountin au litin grit nsuffin-rex®.eriencetinc udJng servinover mental inon oroit entities We have provided detailed resumes for these individuals in Appendix A. The resumes indicate years of experience, as well as educational background, licenses and certifications, professional affiliations and detailed relevant experience. e) Provide copy(s) of the State of Florida CPA license for all individual CPA's assigned to the audit and for the firm. We have provided the Crowe and SKJT&G Florida business licenses in Appendix C. All CPA staff assigned to this engagement are properly licensed. We have provided documentation below. Crowe Horvath LLP Licensee Details �� � , .Gceriaffirormafion Name: Main Address: County: License Mailing: LicenseLocation: County: : _ CROWE HORWATH LLP (Primary Name) (DBA Name) PO BOX 3697 ONE MID AMERICA PLAZA OAK BROOK Illinois 60522-3697 OUT OF STATE 401 E LAS OLAS BLVD SUITE 1100 FORTLAUDERDALE FL 33301-4230 DADE 'Lcene3n orma6on -sue.: FIRM CPA Firms AD65735 Current 07/30/2008 12/31/2015 License Type: Rank: License Number: Status: Licensure Date: Expires: Crowe Horvath. www.crowehorwath.com © Copyright 2014 Crowe liorwath LLP External Auditing Services City of Miami 9 John Weber, CPA Licensee Details cense • Tforrna#ton :L Name: Main Address: County: License Mailing: LicenseLocation: r #' WEBER, JOHN CHARLES (Primary Neme) (DBA Name) 101 EASTKENNEDY BLVD SUITE 1250 TAMPA Florida 33602 HILLSBOROUGH Ltcense'.Tnforroptionr. License Type: Rank: License Number: Status: Licensure Date: Expires: 'm { Certified Public Accountant CPA AC46517 Current,Active 10/16/2013 12/31/2014 Kevin Smith, CPA as State Board ofPublhc Aceountani Pam TreabY ExeGuhve'Dre Individual Licensee - SMITH, KEVIN WAYNE Sesn:h Help) S1atu%Valves) Thins villas Certificate last name SMITH Contact Information (most recent) 5249 OAKHURST LN FRISCO TX 75034 pate certlfiedlregistered 08/20/1997 License expiration date 07/31/2014 License Status Issued (Current) Employment areas most recently reported Full time PARTNER- IN TEXAS Part time NONE REPORTED firms In which the individual Is a partner shareholder, owner, officer, director. or resident manager Association with the firm CROWE HORWATH LLP (License ID = P05457) began on 08/17/2009. History of disciplinary actions NO DISCIPLINARY HISTORY „; Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 10 Aazan St. Rose, CPA Licensee Details censee: formation- Name: Main Address: County: License Mailing: LicenseLocation: .: j . s s. ST ROSE, AAZAN C (Primary Name) [DfA Name) 475 BRICKELL AVE UNIT 1208 MIAMI Florida. 33131 DADE - -Mali;gin cen`s` atin � License Type: Rank: License Number: Status: Licensure Date: Expires: Fs��" `: �, - , ' -?f.- _-•, ,:2 �?vA`` �_ Certified Public Accountant CPA. AC46179 Current,Active 07/10/2013 12/31/2014 -* Matthew Geerdes, CPA V5/20Aa :LkNMPN'S Memel MATTHEW ANDREW GEERDES Illinois Division of Professional Regulation 4:213:26 am SEARCH FOR LICENSEE NY PROFESSIONI CCri liied Pubic AteuurNam, LitCUSed THERE ARE I RECORDS WHOSE NAME CONTAINS:Otenles bNAM101 ;Ureuie Number i065033933 Lima.* 3StMe6 sbtir ON01oel IWO Current EYPrba 1 ErNrblxpinN 17 ACiVE LEMONT, IL 09/05/2007 09/30R015 Page L Jeffrey Palgon, CPA icense&PerrniNCertificate Num IepistratronNumber .icense/PermitfCert,ficafe Stalc NAME JEFFREYADAM PALGON or Disciplinary. Actions Crowe Horwath. © Copyright 2014 Crowe Horwath LLP 2TIFiED PIiBLIC ACCOUNT (AMINATION1Deflmhori DZ 11 94 www.crowehorvvath.com External Auditing Services City of Miami 11 Corinne Ahrend, CPA Licensee Details Lc-ns w iifo afro Name: Main Address: County: License Mailing: LicenseLocation: A - AHREND, CATHERINE CORINE (Primary Name) (PHA Name) 4545 CHASE DRIVE WESLEY CHAPEL Florida 33543 PASCO :Liter_ nforrmai_ion License Type: Rank: License Number: Status: Licensure Date: Expires: � f ems , Certified Public Accountant CPA AC37373 Current,Active 12/08/2004 12/31/2015 John Shumaker, CPA NAME: JOHN J_ SHUMAKER Address: Easiness ATE OFLICENSE:KY(Stat info)r Jam° ecord Last Updated 2014.f5-0! Mali LEXINGTON, KY, UNITED STATES . . ccpFaeary'Achons i0efa0s) None RepndedTo Th� Sdel'3y The So'srd -' --== CANDIDATES FORA CPA LICENSE MUST MEET ONE OF THE.FOLLOWING ATTHE.:: TIME OF APPLYING FORA�LICENSEIS'Ai]NITED:STATESCITIZEN ACIT.IZENO�A'. .. �" l F•OREIGN COUNTRY WHO.1S LEGALLYRESIDINGIN THEI.INITED STATES OR IS AN "--"' EMPLOYEEOF.4PUBLICACC-0UNTINGFIRM COMPANYORANINSTiTUTIONOF- POS7SECflNDARY EDUCA'TiDN LOCATED OUTSIDETNE UNITED STATES 8UT _ WHICH HAS AN OFFICE OR CAMPUS LOCATED 11.1 THE UNITED STATES: Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 12 Saadia Rauf, CPA licensee Details Licenseelnkf inatiQri ' m RAUF, SAADIA (Primary Name) (DBA Name) 18009 ARBOR CREST DR TAMPA Florida 33647 HILLSBOROUGH Name: Main Address: County: License Mailing: LicenseLocation: ce©se.In ormatioR == ` M Certified. Public Accountant CPA AC45208 Current,Active 10/17/2012 12/31/2015 � ' License Type: Rank: License Number: Status: Licensure Date: Expires: SKJT&G Licensee Details timnseo Informaiwxt w n { r� e y _ Name: SANSON, KLINE, JACOMINO, TANDOC.& GAMARRA, LLP (Primary Name) SKJT&G (DBA Name) Main Address: 5805 BLUE LAGOON DRIVE, SUITE 220 MIAMI Florida 33126 County:. DADE License' Mailing:. LicenseLocation: 5805 BLUE LAGOON DRIVE, SUITE 220 MIAMI FL 33126 County: DADE Licenselnfo`nafion:�� ,::� License Type: FIRM Rank: CPA Firms License Number: AD0010184 Status: Current Licensure Date: 07/10/1984 Expires: 12/31/2015 Crowe Horvath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 13 Richie C. Tandoc, CPA, CFE Licensee Details is.errs-InfOrrrtaiw ' { : - ' TANDOC, RICHELLE CHAN (Primary Name) (DNA Name) 850.0 SW 87 TERRACE FOAMY Florida 33143 DADE 8500 SW 87 TERRACE MIAMI FL 33143 DADE Name; Main. Address: County: License Mailing: LicenseLocaton: County: - Certified Public Accountant CPA AC0031252 -Current,Active 05/13/1998 12/31/2034 License Type: ' Rank: License Number; Status: - Licensure Date: Expires: Carole Stewart -Heron, CPA, CFE Licensee Details iLfC slit 0ZiatfS ". "�' sue'+ .` m s" STEWART-HERON, CAROLE ALTHEA (Primary Name) (DBA Name) - 5805 BLUE LAGOON DR SANSON, KLINE, 3ACOMINO &.CO. # 220 MIAMI Florida 33126 DADE 5805 BLUE LAGOON DR SANSON KLINE 3ACOMINO & CO # 22D MIAMI FL 33126 - DADE Name: Main Address: County:. - - License Nailing: LicenseLocation: County: License Tiif°rola n2}" License Type: Rank:, License Number: Status:. Licensure Date: Expires: - ram` ,,= Certified Public Accountant CPA AC0033757 Current,Active D2/15/2001 12/31/2015 • Crowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 14 t) Provide positive affirmation that all CPA's assigned to the engagement have properly maintained their Continuing Professional Education (CPE) in governmental accounting as required by the Board of Accountancy. Crowe Each of our staff is educated in their chosen profession and hold a minimum of a four-year college degree in accounting. Several have advanced degrees and/or multiple degrees in related areas. In addition, we provide an average of 60-80 hours of continuing professional education each year for every member of our professional staff, which exceeds the 40 hour standard imposed by the AICPA. This continuing education helps assure that we stay abreast of current technical developments to continually enhance the professional skills of our staff and support the Firm's overall quality control system. Because of Crowe's industry specializations your engagement team members have extensive experience serving government and other exempt organizations. During the past three years, the audit engagement team members have attended classes and conferences including the following topics: GAAP Updates; Auditing Standard Updates; Governmental and Single Audit Report Review; FASB Updates; Financial Reporting for Non -Profit Organizations; Peer Review and Quality Control; and Compliance and Performance Auditing. In addition, several members of the firm have taught or led seminars sponsored by professional organizations. Our Human Resources staff maintains a full-time employee to administer an HR database of all licensing and related CPE requirements. Careful monitoring and management of this process serves to ensure that all professionals have met the requirements of their licenses. SKJT&G SKJT&G affirms that all professionals assigned to the audit engagement have properly maintained the CPE requirements in accordance with the rules promulgated by the American Institute of Certified Public Accountants and Government Auditing Standards. g) Provide documentation from the Board of Accountancy that the licenses described above are indeed active and in good standing. Please refer to the licenses provided in question "e" above. h) Provide a list of clients that have discontinued use of Proposer's services within the past two (2) years and indicate the reasons for the same. The City reserves the right to contact any reference as part of the evaluation process. Crowe Like all public accounting firms, we do experience turnover in our client base. In most instances, this turnover is due to a required firm rotation due to Audit Committee charter or State law requirements. In the very rare instance that the turnover is for some other reason, we treat each instance as a learning experience and this motivates us to do better in our future endeavors. We are unaware of any instances in which a client relationship terminated due to a disagreement with management that could not be resolved prior to the issuance of the report. A Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 15 SKJT&G Below is a list of clients in the past two years that SKJT&G no longer provides audit services to, and the reasons for such loss: The School District of Palm Beach County, Florida Description of work: Subcontract financial statement audit and single audit orrtoss Co ltrac cebde®a dZw are not a igibi to rer ®rd Bayfront Park Management Trust (A Component Unit of the City of Miami) Description of work: Re -as rho a Financial statement audit Contract ended and wear not el gib a to re, bid i) Provide documentation of the firm's good standing to practice before the Securities and Exchange Commission. Crowe Crowe is in good standing with the Securities and Exchange Commission and we are registered with the Public Company Accounting Oversight Board (PCAOB). The SEC has not suspended any of Crowe's practices. Please see the screen shot from the PCAOB website provided below as evidence. https://rasr.pcaobus.orq/) Public Company Accounting oversight Board Registration, Annual and Special Reporting Lime > Firm Summary Crowe Horwath LLP (173) Registration Status: Currently Registered Headquarters Address: .One Mid America Plaza, Suite 700, Oakbrook Terrace, IL 60181-4707 Other Names Used in Issuing Audit None Reports: Predecessor Firm to Whose Registration Crowe Chizek and Company LLC the Firm Succeeded: Registration Date: 09/24/2003 Registration Succeeding to Registration Status of Predecessor (Form 4) - Filed 2/12/2010 Aoolication for Registration (Form 1) Annual and Special Reporting by the Finn Form Special Report (Form 3) Annual Report (Farm 2) For Reporting Year 2013 Filed Date Special Report Relates To 07/02/2013 Licenses and Certification 06/28/2013 Special Report (Form 3) 03/19/2013 Certain Legal Proceedings, Licenses and Certification Fora list of issuers (f any) that the firm has audited, or in whose audits the firm has played a substantial role, see Part IV of the firm's annual reports. Disciplinary Proceedings None Inspection Reports 12/19/2013 5/23/2013 6/20/2012 6/10/201Q 5/6/2009 0= Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 16 j) Provide two (2) Letters of Reference on letterhead from preferably governmental entities for whom similar services have been performed. This information shall be subject to verification as part of the evaluation process. We have included letters of reference for Crowe and SKJT&G in Appendix B. k) Provide a current resume of each Sub -Consultant. Proposer shall identify all Sub -Consultants and those services to be performed by each. Proposer shall provide the Sub -Consultants' qualifications and experience in detail, highlighting all similar experience as addressed in this RFP and anticipated to be performed by each of the same. Proposer shall provide for each Sub -Consultant the same information required of Proposer. The City retains the right to accept or reject any Sub -Consultants proposed. The City reserves the right to contact any reference as part of the evaluation process. Crowe has provided the required information for our sub -consultant Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP. We have provided detailed resumes for each subcontractor individual in Appendix A. Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 17 5. Technical Qualifications A. Ability and Experience to Perform Required Services a) Provide location of the office from which the audit will be conducted. The engagement will mainly be staffed from our Ft. Lauderdale and Tampa office with industry specific support from other offices. b) Provide a List of not less than three (3) references within the past five (5) years for whom similar services were performed. Include the overall value of the contract, the term of the contract, and include the address, phone number(s) and contact persons within each organization. The City reserves the right to contact any reference as part of the evaluation process. At least one copy of a CAFR from one of the references shall also be submitted. In the event that a firm has been formed so recently that no government auditing references are available, the Proposer shall state the same in the response to the RFP. If available, the Proposer shall also submit governmental auditing references for any predecessor firms. Quality work, based upon strong competency and directed towards our client's needs, is the core element of creating value for our clients. Quality service involves prompt and efficient service delivery and effective communications with clients. Business relationships involve gaining trust and respect by listening to our client's needs and developing a comprehensive understanding of their business and vision for the future before providing advice. We have delivered high value to our clients for decades and we feel that we are well -suited to help the City. Our clients are the best judges of our ability to exceed your expectations. Please feel free to contact any of the individuals listed below for an appraisal of our work. Crowe References Broward County Description of Work Audit of financial statements, including separate audits of enterprise funds and elected constitutional officers ®uerall�. al ie otContrae Term of Contract $'4=090 -0o 2010 to 2014 EvanrLQkio 9 43575^90 Sb�uthAnrawa'A e Forf=Lauderdale Florida 333Q1 City of Fort Lauderdale, Florida (CAFR provided under separate cover) Description of Work Overall Yalu " o Contra Term of Contract Crowe Horwath. © Copyright 2014 Crowe Horwath LLP Audit of financial statements, Federal and State single audit, audit of large wastewater user'schedule-: 2012to2016' an =52Z0: nd ews Aveii a Fort Laude www.crowehorwath.com External Auditing Services City of Miami 18 City of Lakeland, Florida Description of Work Annual Financial and Single Audit, employee pension fund, Lakeland Electric, separate financial statements, assistance with bond issues and, Certified Audit for Florida Sales and Use Tax SOve ai'�alu o Ctritracti Terri of Contract 2014to2016 Crowe, has been auditing the City of Lakeland for 20+years .' chae hBrossa f F. irecto [assachusett_ svenuezaelanF13380 City of Tampa, Florida Description of Work Annual financial audit arid single audit including employee pension fund and component unit and CRA funds O re al(=alue o eont Term of Contract Ghent -don 2011 to 2013 with an option for a two year extension Hu_s. title GFite_Aceounfant; Pinellas County, Florida Description of Work Ve aliVarue o Con a- Term of Contract Crowe Horwath. © Copyright 2014 Crowe Horwath LLP Annual Financial Audit and Single Audit, Board of County Commissioners and Constitutional Officers, includes and separate financial statements for Sewer department $1,56$_�:6Z$ www.crowehorwath.com External Auditing Services City of Miami 19 SKJT&G References Boynton Beach Community Redevelopment Agency (A Component unit of the City of Boynton Beach) Description of Work Value of Term of Contract Financial statement audit and single audit (2011. only) 208 000�4. Fiscal years 2008-12, 2013-18 Susa Harris Director ° na c� 5fik1733256- E0203 T170 fVaFedera Fl g a City of Miami, Florida Description of Work Term of Contract Subcontract financial statement audit and single audit Fiscal years 1996-2000, 2003,. 2007-10, 2011.-1.3 City of Miami Community Redevelopment Agencies (Component Units of the City of Miami) Description of Work Term of Contract Financial statement audit and agreed -upon procedures Fiscal years 2003-07 2008-12 2013-14 1490 NU113 Aver a Suite f 05 Miami Florida Coconut Grove Business Improvement District (A Component Unit of the City of Miami) Description of Work Oe`ral talueofGoiract Term of Contract Crowe Horwath. © Copyright 2014 Crowe Horwath LLP Financial statement audit Fiscal year 2013 (with annual renewals frnyGnzalez ExecutLveDirector www.crowehorwath.com External Auditing Services City of Miami 20 Miami -Dade County, Florida Description of Work alt.! e of Contrac �..�� Term of Contract Subcontract financial statement audit and single audit 1 2 , 00_0 Fiscal years 1997-2002, 2003-04, 2005-10, 2011-13 (with 2 one-year options to renew) Sla ca Pa_d o Depu Dr ector of'Fin`anc 315t52 k 11 Northwest_Cst Street utte 2550AMiarni;-iFCo . d'aP331228. Miami Sports & Exhibition Authority (A Component Unit of the City of Miami) Description of Work - Financialstatement audit verall taluero Contrac`, Term of Contract Fiscal years 2009-12, 2013 (with annual renewals) Client Contaci Kli*Menendez Execu rve�D recto ��' T` � L 3500 an Ame ican f3nv Mrarnr Flonda,=33 33 _ c) Provide recent, current and projected workload for the Proposer and auditors assigned to the City's account. Crowe Crowe is well positioned to provide quality service to the City in a timely fashion. Crowe has a sophisticated Centralized Resource Management function that is responsible for ensuring that the City's needs are met with the experienced and trained staff from our local offices, and if needed, from across our firm. We realize that resource management is a crucial element to consistently providing top quality service to the City, and all of our clients. The government audit projected workload of Team Members during City of Miami proposed schedule is detailed below: Name of Key Personnel and Title John Weber Engagement Partner. Florida Government Audit Partner Crowe Horwath. © Copyright 2014 Crowe Horwath LLP Compliance with GAGAS Continuing Professional Education (CPE) Requirements (Yes/No) www.crowehorwath.com List other audit engagement commitments during the City's Audit Period including the number of hours committed to each engagement and contract time frame Pinellas County (150), Broward County (150), City of Ft. Lauderdale (100), City of Tampa (150), City of Lakeland (100), Miami Dade Transit (50) External Auditing Services City of Miami 21 Name of Key Personnel and Title Aazan St. Rose, CPA Jeff Palgon 'Cro�Ade,,: tudifanage Gerard Boucaud, CISA Saadia Rauf, CPA Crowe Horwath. ©Copyright 2014 Crowe Horwath LLP Compliance with GAGAS Continuing Professional Education (CPE) Requirements (Yes/No) www.crowehorwath.com List other audit engagement commitments during the City's Audit Period including the number of hours committed to each engagement and contract time frame Broward County (300), City of Ft, Lauderdale (250), Miami Dade Transit. (100) City=o ar is Jeff is one of the southeast region seniors for Crowe's IT audit team and is responsible for the jobs in the southeast region with various year ends which include jobs in the public sector including government sector assignments. inollasieounty (3:0 Gerard is one of the southeast region seniors for Crowe's IT audit team and is responsible for the jobs in the southeast region with various year ends which include jobs in the public sector including government sector assignments. ity o$ Tam) 21 ugusti arch Pinellas County (200), City of Tampa (200) August thru March External Auditing Services City of Miami 22 SKJT&G SKJT&G's recent, current and projected governmental projects workload, either as primary contractors or subcontracts, include the following: Compliance with GAGAS Continuing Professional Education (CPE) Requirements (Yes/No) Richie C. Tandoc, CPA, CFE Subcontract Partner Jenny Orantes, CFE Subcontract Manager List other audit engagement commitments during the City's Audit Period including the number of hours committed to each engagement and contract time frame No audit engagements during City's audit. on��wtll„ None - will be 100% on City's audit We do not project any additional governmental engagements in the next year, unless we are awarded the City audit engagement. We believe that we have sufficient resources to serve our current governmental clients, as well as serving the City of Miami, Florida, as its subcontract auditors, if we are awarded the contract. d) Provide a copy(s) of the two (2) most recent external quality control reviews (peer reviews) inclusive of reviews of specific government engagements. Quality Control Review Process Crowe places strong emphasis on maintaining a high level of professional audit quality. To achieve this level of quality we have developed an internal quality control system led by our Assurance Professional Practice (APP) Group. We also undergo a triennial external peer review and as one of nine firms auditing more than 100 public companies, Crowe is subject the full, detailed annual inspection process of the Public Company Accounting Oversight Board (PCAOB). In addition, Crowe has a long-standing role of participation and leadership in national professional standards associations and regulatory organizations. Members of our firm serve on the Ethics Committees in their relevant states, the AICPA's national ethics committee and the AICPA's State and Local Government Expert Panel and CPE Advisory Committee. Internal Quality Control Review Crowe has a fully developed set of policy, procedure and review activities supporting our audit practice. Quality control for all assurance efforts is established by the national office of Assurance Professional Practice ("APP") and documented in our Quality Control Manual that includes the following six elements along with the related objectives: 72 Leadership Responsibilities for Quality Within the Firm 71 Relevant Ethical Requirements Acceptance and Continuation of Client Relationships and Specific Engagements $: Human Resources Engagement Performance Monitoring Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www. crowehorwath.com External Auditing Services City of Miami 23 APP is also responsible for managing and communicating independence and ethics directives of the Firm. All audit personnel are responsible for knowing and understanding important Firm protocol, including: • Independence • Integrity and Objectivity • Technical and General Standards, including AICPA and accounting principals 7, Information about our responsibilities to clients, including listings regarding commissions, confidential information and contingent fees Information about our other responsibilities and practices, including general information and listings related to commissions and discreditable acts APP is also responsible for handling inquiries from engagement teams on matters related to those policy areas. APP also performs a function within our Firm which we believe is unique among major firms. Most audit engagements, public or private, are subject to a pre -issuance review by APP. This review includes a review of the financial statements and certain other deliverables, and may include a review of the workpapers supporting the judgments made on key accounting and auditing areas. Other important quality control policies and procedures include the procedure that all public company audit engagements are subjected to an Engagement Quality Review by an individual other than the Engagement Authorized Signer. In addition to the PCAOB and Peer Review inspections, the Firm also performs an annual internal inspection selected audit engagements. These inspections focus on adherence to professional standards and Firm policies and procedures. This process is led by a member of APP. External Quality Control Review Crowe is subject to a Peer Review of our audit practice every three years and has been since 1980. Crowe's current external quality control review organization is Cherry Bekaert LLP. Cherry Bekaert LLP has more than 15 offices located primarily in the Southeastern United States. Our most recent peer review was conducted by Cherry Bekaert LLP, for the year ended March 31, 2013, and our Firm received the highest rating. The review included reviews of specific public sector engagements as well as quality control aspects of our Firm's operations. We have included a copy of the two most recent Peer Review Reports for Crowe Horwath LLP and Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP in Appendix D of our proposal. National Professional Standards Associations and Regulatory Organizations Crowe has a long-standing role of participation and leadership in national professional standards associations and regulatory organizations such as: x American Institute of Certified Public Accountants (AICPA) American Institute of Certified Public Accountants Governmental Audit Quality Center T Public Company Accounting Oversight Board (PCAOB) Standing Advisory Group Financial Accounting Standards Board (FASB) Center for Audit Quality (CAQ) Ta Tax Executives Institute (TEI) ;= International Federation of Accountants Internal Revenue Service (IRS) Y U.S. Securities Exchange Commission (SEC) s. Institute of Internal Auditors (IIA) American Productivity and Quality Center (APQC) Association of Certified Fraud Examiners (ACFE) Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 24 AICPA's Governmental Audit Quality Center Crowe is a member of the AICPA's Governmental Audit Quality Center (the Center), which is a firm - based, voluntary membership Center designed to help CPAs meet the challenges of performing quality single audits in this unique and complex area. The Center's primary purpose is to promote the importance of quality governmental audits and the value of such audits to purchasers of governmental audit services. The Center also offers resources to enhance the quality of a firm's governmental audits. The mission of the Governmental Audit Quality Center is to: • Raise awareness about the importance of governmental audits vi Serve as a comprehensive resource provider on governmental audits for member firms • Create a community of firms that demonstrates a commitment to governmental audit quality ' Provide Center members with an online forum tool for sharing best practices as well as discussions on audit, accounting, and regulatory issues • List member firms to enable purchasers of governmental audit services to identify firms that are members e) Provide results of any federal or state desk reviews or field audits during the past three (3) years. We have had audits reviewed by Federal Inspector General Offices as a part of desk and field reviews. All single audits performed are submitted to the Federal Audit Clearinghouse for distribution to the appropriate federal agency. Our Single Audit Reports are regularly accepted by those federal agencies. We have performed single audits of federal funds from the following Federal agencies: U.S. Department of Education TA U.S. Department of Transportation • Federal Highway Administration tict Federal Transit Administration Railroad Administration rt National Traffic Safety Administration • U.S. Environment Protection Agency ,i U.S. Department of Agriculture rg Federal Emergency Management Agency U.S. Department of the Interior F U.S. Department of Justice U.S. Department of Health & Human Services %I U.S. Department of Labor y; U.S. Department of Homeland Security Additionally, the U.S. Department of Transportation's Office of the Inspector General, U.S. Department of Education's Office of the Inspector General and the U.S. Federal Emergency Management Agency's Inspector General have performed field reviews of our workpapers. All reviews performed resulted in the acceptance of the work performed. Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 25 t) Describe the ability to provide the City with analysis of current developments of Governmental Accounting Standards Board (GASB) and Financial Accounting Standards Board (FASB) pronouncement. We take a very proactive approach in helping our clients understand GASB activities from exposure drafts to implementation of new standards. We accomplish this through our collaborations with GASB, GFOA, AICPA Government Audit Quality Center, through our Government Advantage quarterly publication, and more importantly by taking the time to sit down with clients to discuss and plan for the impact of new GASB standards. In addition, we offer webinars for our clients on a continuing basis. Below is an example of a Webinar: 1.1 Register Now Please plan to join Crowe Horwath LLP for this six -part webinar series focusing on GASB 67 and 68. Part 1 Implementation Guidance for GASB 67 Tuesday, April 22, 2014 Noon-1 p.m. Eastern Crowe presenters will outline the implementation of GASB 67 for pension plans. It also will include guidance on what additional documentation requests to expect from your auditors and how the implementation of this pronouncement could affect plan employers. Part 2 Unlocking the Mystery Around Plan Assumptions Tuesday, June 17, 2014 Noon-1 p.m. Eastern Crowe presenters will explain the terminology used throughout the new pension statements and address the confusion associated with plan assumptions as they relate to GASB 67 and 68. In particular, presenters will explain the discount rate and the interest rate and what effect those have on the final liability. Part 3 The Financials: Entries That Will Be Needed and Changes to the Statements for GASB 67 and 68 Tuesday, Aug. 19, 2014 Noon-1 p.m. Eastern Crowe presenters will provide a detailed overview of the GASB 67 and 68 standards and identify potential entries that might be needed, provide examples of those entries, and review the changes to the statements, footnotes, and required supplementary information (RSI). Presenters also will provide an example of an updated statement, footnote, and RSI to show the before and after effect. Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 26 Part 4 Help! What Do All the Questions and Answers Mean for My Implementation of GASB 67 and 68? Tuesday, Oct. 21, 2014 Noon-1 p.m. Eastern Reviewing the implementation guides and all of the questions might seem like a daunting task. During this webinar, presenters will address some of the significant issues identified in the guides and share manageable ways to address them. Part 5 Audit Time — A Guide to Preparing for a GASB 67 and 68 Audit Tuesday, Nov. 18, 2014 Noon-1 p.m. Eastern Crowe presenters will provide guidelines about important points that you should know before the auditors walk through the door. Part 6 How to Present the Results of Implementing GASB 67 and 68 Tuesday, Dec. 9, 2014 Noon-1 p.m. Eastern The final step of the GASB 67 and 68 implementation process is explaining it to the governing body and other users of the financial statements. In this webinar, Crowe presenters will summarize a suggested presentation with key points — geared toward the governing body and designed to provide the greatest value in a limited period of time — to highlight the new statements. Register Now: www.crowehorwath.com/events Accounting Alerts: Accounting Alert Newsletter The Accounting Alert offers accounting and auditing news you can use from Crowe Horwath LLP audit and assurance specialists. In each issue of this electronic newsletter, you will find abstracts of recent accounting issues, standard -setting activities, and regulatory developments that affect commercial, not - for -profit, and state and local governmental entities. Please refer to http://www.crowehorwath.com/insights/accounting-alertfor additional Crowe accounting news. Government Support You need to stay competitive. You want practical, timely, reliable information from knowledgeable, respected thought leaders. To keep you informed, Crowe publishes articles, white papers, newsletters, technical updates, and e-communications. Check out: http://www.crowehorwath.com/industries/government/ for an interactive map of our services and our current calendar of events. Crowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horvath LLP External Auditing Services City of Miami 27 g) Provide an affirmative statement that it is independent of the City of Miami as defined by the U.S. General Accounting Office's Government Auditing Standards. The firm shall also list and describe the firm's (or proposed Sub -Consultant's) professional relationships involving the City of Miami or any of its agencies for the past five (5) years, together with a statement explaining why such relationships do not constitute a conflict of interest relative to performing the proposed audit. Crowe Independence As a firm of certified public accountants, Crowe has policies and procedures to provide reasonable assurance that professional personnel maintain independence, integrity, and objectivity required under professional standards. A dedicated unit within Crowe, the ethics and independence group within the firm's national office, is responsible for managing and communicating independence and ethics guidance and firm protocol. Independence precludes relationships that might in fact or appearance impair objectivity in performing audit and other attest services. Integrity requires personnel to be honest and candid within the constraints of client confidentiality. Service and the public trust are not to be subordinated to personal gain or advantage. Objectivity is a state of mind and a quality that lends value to a firm's services. The principle of objectivity imposes the obligation to be impartial, intellectually honest, and free of conflicts of interest. Personnel must consciously refuse to subordinate their judgment to that of others and must avoid relationships that may impair objectivity or influence judgments. The Crowe policy is that all personnel must be in fact and appearance independent in attitude, in the conduct of work performed, and in relationships with clients, as required by applicable professional standards. All professional personnel shall follow the applicable independence rules and regulations of the American Institute of Certified Public Accountants (AICPA) Code of Professional Conduct, the state Boards of Accountancy, the Securities and Exchange Commission (for public company audit clients), the U.S. Government Accountability Office (GAO; for audits subject to GAO requirements), and other regulatory agencies. We communicate independence rules to help provide assurance that our personnel will comply with applicable rules. Our success as an independent public accounting firm requires that the firm and its personnel comply with all applicable ethical and independence standards and rules. The firm views independence or ethics violations seriously. After evaluating the circumstances, the firm may sanction an individual who violates applicable ethics or independence requirements or related firm policies and procedures. Sanctions may include, but are not limited to, entries in personnel records, reduction in responsibilities, reduction in compensation, termination, or other actions that the firm's management may determine are appropriate. Crowe is independent — as defined by the AICPA Code of Professional Conduct and Government Auditing Standards issued by the Comptroller General of the United States — of the City and any of its agencies, its elected or appointed officials, and its employees. Crowe is not aware of any conflicts of interest relative to performing the proposed audit for the City. Crowe has not had any professional relationships with the City of Miami or it's agencies in the past 5 years. SKJT&G Independence SKJT&G affirms that the Firm and all of its professionals are independent of the City and its related agencies, as defined by generally accepted auditing standards and the U.S. General Accounting Office's, Government Auditing Standards. On the following page is a list of SKJT&G's professional relationships involving the City of Miami and its related agencies during the past five years: Crowe Horvath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 28 SKJT&G was the subcontract auditors for the City of Miami for the fiscal year ended September 30, 2007 through September 30, 2013; SKJT&G has been the primary auditors for the City of Miami Community Redevelopment Agencies from fiscal year ended September 30, 2003 to the present; SKLT&G was the primary auditors for Bayfront Park Management Trust from fiscal year ended September 30, 2008 through September 30, 2012; SKJT&G has been the primary auditors for the Miami Sports and Exhibition Authority from fiscal year ended September 30, 2009 to the present; and SKJT&G was the primary auditors for the Coconut Grove Business Improvement District for fiscal year ended September 30, 2013. SKJT&G does not believe that any of the above professional services constitute a conflict of interest relative to performing the proposed audit of the City, as such services are allowable in accordance with the independence standards promulgated by generally accepted auditing standards and the U.S. General Accounting Office's, Government Auditing Standards. h) Describe any litigation or proceeding against Proposer, its partners, managers, sub- consultants/contractors and/or other key staff members, within the past five (5) years. Provide the circumstances and statuses of any disciplinary actions taken or pending against the Proposer, its partners, managers and/or other key staff members, by the state regulatory bodies or professional organizations or by any court or administrative agency which has ruled against its professional activities or performance. Crowe As previously stated, like all large professional service firms, Crowe Horwath LLP is subject to claims from time to time for a variety of reasons, and we occasionally receive notice of claims. Crowe has pending litigation, but it is Crowe's policy not to discuss any specific matters. However, in the view of management; there are no current claims that will result in significant losses to Crowe. Crowe has no pending or threatened litigation, administrative or regulatory proceedings or similar matters that could affect its ability to perform the required services. Crowe has not been the target of any criminal investigation, indictment, prosecution or other proceeding and there are no known felony convictions of any Owners, officers, or primary partners of Crowe. We understand the need for continued reporting of status changes related to this area. SKJT&G SKJT&G has no current or pending litigation, has not had any litigation or proceedings in the past five years, and has not had any disciplinary actions taken or pending against SKJT&G or any of the firm's Partners, Directors, Managers or other professional staff during the past five years with state regulatory bodies or professional organizations or by any court or administrative agency. i) Describe any current or pending litigation or proceeding involving Proposer, its partners, managers and/or other key staff members, and its professional activities or performance, if applicable. State the nature of the litigation, a brief description of each case, the outcome or projected outcome, and the monetary amounts involved. Crowe As stated, like all large professional service firms, Crowe Horwath LLP is subject to claims from time to time for a variety of reasons, and we occasionally receive notice of claims. Crowe has pending litigation, but it is Crowe's policy not to discuss any specific matters. However, in the view of management; there are no current claims that will result in significant losses to Crowe. Crowe has no pending or threatened litigation, administrative or regulatory proceedings or similar matters that could affect its ability to perform the required services. Crowe has not been the target of any criminal investigation, indictment, prosecution or other proceeding and there are no known felony convictions of any Owners, officers, or primary partners of Crowe. We understand the need for continued reporting of status changes related to this area. ,SO\ Crowe Horvath. www.crowehorwath.com @ Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 29 SKJT&G As previously stated, SKJT&G has no current or pending litigation, has not had any litigation or proceedings in the past five years, and has not had any disciplinary actions taken or pending against SKJT&G or any of the firm's Partners, Directors, Managers or other professional staff during the past five years with state regulatory bodies or professional organizations or by any court or administrative agency. j) Discuss any bankruptcies involving Proposer, its partners, manager, and/or other key staff members, if applicable. Crowe, SKJT&G and its professional staff have not been involved in any bankruptcy proceedings. B. Audit Approach a) Provide a brief description of the audit procedure to be followed. Transition Plan A smooth transition is important to both the City and Crowe. You have been audited by the same firm for several years and may have grown accustomed to certain ways of doing things. This is a chance to re -think how you perceive your internal financial management, audit and business partner relationships and start fresh. However, with a change in auditors, both Crowe and the City must be willing to invest the time necessary to properly facilitate change. We expect to make an investment in our relationship which will be mutually beneficial to our organizations. Upon approval of Crowe as the City's auditors, we will schedule a planning meeting to meet with management to discuss roles and expectations of Crowe and the City. Other audit planning meetings may be scheduled to discuss specific accounting and financial reporting and to analyze the programs and operational activity as well as tax planning and new developments. Key elements of an effective transition plan include: Eg Developing client and auditor expectations and performance measurements ta Developing time lines for audit services Communicating our audit approach We will move quickly to execute the engagement letter. We will perform our formal due diligence and client acceptance procedures after you have communicated with your previous audit firm. As part of that process we will assist you in requesting that Crowe have access to the current firm's workpapers and schedule a time to review those workpapers. The above services are included in the fee agreement we have provided. Audit Approach The following audit approach sets forth a work plan, including an explanation of the audit methodology to be followed to perform the nature of services requested in the RFP. The risks that are identified, the procedures that are performed or additional testing focus may change on a year-to-year basis based on the risk assessment, but the approach does not change. Y' Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 30 Approach to Gain and Document the Understanding of the Internal Control Structure Expectations for improved corporate governance have caused governmental organizations to rethink how they manage and control risk. Governments are reviewing the roles and responsibilities of internal audit and newly created internal controls functions to respond to the increased expectations of stakeholders. Crowe's public sector specialists have the breadth of knowledge and depth of experience necessary to effectively address compliance issues and implement new reporting and disclosure requirements for government organizations. We provide a multidisciplinary approach to assessing financial and structural vulnerability and accountability that brings the type of governance, internal accounting and operational control, and regulatory oversight consulting that is becoming mainstream in corporate America and is at the forefront of thinking in the public sector. Measurement and mitigation of risk in the government context requires more than an auditor's approach. Our teams combine traditional accounting and auditor resources with operational design consultants and program managers to evaluate financial risk in light of program objectives and balance the need for increased accountability with the need to address program objectives. The Statements on Auditing Standards (SAS) Nos. 104 through 111 and 114, issued by the American Institute of Certified Public Accountants (AICPA), considerably affect the way audits for government organizations are to be completed. Government entities need to select an audit firm that can meet the requirements of these regulations as well as the specific needs of the organization. Crowe uses a risk based approach to auditing that heavily emphasizes the understanding, corroborating and testing of internal controls to assess risk within the client organization. The primary areas we cover include entity wide controls, IT controls and specific account or cycle level controls. We use personal interaction, flow charting and web based interactive tools to understand, gather, corroborate and test internal controls in order to assess risk. While Crowe used a risk -based approach for several years prior to the implementation of the newer standards, our audit process was strengthened with the new standards. Our desire to provide value and a high -quality audit remains unchanged. We differentiate our services from those of our competitors through close personal involvement from all levels of the engagement team and regular, focused communication with your management team. While the audit process can still be separated into unique phases, the process is not as linear as it was previously. It is likely that decisions reached and information obtained in an earlier phase of the audit may need to be reconsidered based on evidence gathered in a later phase. Crowe's risk -based audit approach includes the following phases: Phase 1 Audit Strategy , Development & Entity -level Controls Assessmert& Testing Engagement Management and Communication - Phase II Account -level Controls Assessment & Testing" Phase IV Completion, Accumulation of Results and -Reporting Phase I — Audit Strategy Development and Entity -level Controls Assessment and Testing This phase of the audit process includes all pre -engagement activities; the preliminary planning process; obtaining an understanding of the City and its environment; evaluating and testing the design of entity -level controls (including policies and procedures that address significant assertions and affect the City as a whole); and identifying significant risks and our planned response to those risks. „A Crowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 31 Prior to each engagement we determine whether to accept or continue the client relationship, evaluate our independence, develop a preliminary overall audit strategy, establish an understanding of the engagement terms, and document that understanding in an engagement letter. Once these activities have been completed, we begin our planning process. Planning affords us an opportunity to work closely with you to develop audit objectives and outline a plan for meeting those objectives. The planning process includes: 51 Identifying the areas of audit emphasis; Assessing risk and materiality; Designing audit techniques and procedures; Discussing and assigning responsibilities; and Formalizing the reporting timetable. During planning, we will ask you to identify areas of higher risk, which we will later address by designing specific controls or substantive tests customized to you. The Crowe approach includes direct input from your management team to ensure our understanding of the scope of perceived risk, your perspectives on the risk, and your expectations of the audit. We will also review your recent audit reports to enhance our efficiency in requesting information and minimize your staff's time during our fieldwork. In addition to meeting with management, we will also make inquiries of those "charged with governance" as required by SAS 114. This standard requires us to communicate the auditor's responsibilities under generally accepted auditing standards and an overview of the planned scope and timing of the audit to the individuals identified as "those charged with governance." Our key audit planning steps include: Entrance Conference. Designed to give our engagement team an overall understanding of your organization. The conference allows us to coordinate audit time frames and due dates, as well as determine the level of assistance we need from your staff and management team. A requested materials letter will be prepared and delivered to you prior to, or shortly after, the close of the conference. V Preliminary Analytical Review. We use expectations based on information obtained from various sources, including conversations with management, review of board minutes and internal financial statements, as well as budgets, to perform a preliminary analytical review of account balances. During the review we will study trends, percentage changes, ratios, and other financial data relationships. We may also use computer -assisted audit techniques to compare your current financial data to at least the previous year of data for unusual fluctuations. We will also review your budget to analyze fluctuations and develop an understanding of your planned initiatives. Brainstorming Meeting to Discuss Risk of Material Misstatement. The Crowe engagement team, including the signing executive, will meet to discuss the susceptibility of the financial statements to material misstatement due to error or fraud. This meeting allows team members to share knowledge and gain a better understanding of the potential for material misstatement of the financial statements, including how management could perpetrate and conceal fraudulent financial reporting and how assets of the City could be misappropriated. Assessment of Audit Risk and Materiality Levels. Audit risk (the risk that an auditor may unknowingly fail to modify its opinion on materially misstated financial statements) and materiality must be considered together in designing the nature, timing, and extent of audit procedures. The Crowe team will determine our overall level of materiality and tolerable misstatement using professional judgment. This consideration is influenced by the auditors' perception of the needs of financial statement users and will therefore include both qualitative and quantitative factors. At the end of the audit we will review any known misstatements and their effect on your financial statements, working with you to determine whether passing on known misstatements will materially affect the financial statements. Crowe Horvath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 32 Documentation of Our Understanding of the City and Its Environment. This is the ongoing process of gathering and analyzing information about the City and its environment that continues throughout the audit. We will perform risk assessment procedures to gain an understanding of the City, such as regulatory and other external factors, the nature of the City and its related operations, objectives and strategies and the related operating risks that may result in a material misstatement of the financial statements; measurement and review of the City's financial performance; laws and regulations; and internal control, which includes the selection and application of accounting policies. Our procedures include inquiries, analytical procedures, observation, and inspection. Documentation of Information Technology Systems. This process includes a system overview and testing of the system for adherence to acceptable standards. Our approach to testing is documented in the chart below. Determine financially significant systems. IT Controls Strategy Any financially significant systems? No' Stop --no further IT controls work needed. This is extremely unusual. Anticipated system reliance? Tier categorization to determine ITspeclalists needed. Nonreliance on IT Controls Document the process to identify what :hanges/modifications are needed to testing of report accuracy, manual 'controls, and to the audit program when IT controls are not relied upon far a finandally significant system. Create work programs (entity level & general controls) IT Entity -level Conttols-and GorcraContro s Lvaluatian Perform IT entity -level controls assessment and testing. Perform ff general controls assessment and testing. 1 Arcnuni•IevPICnn:rois+Stihstantivn Tes ng Summarize results. Plan IT Application Controls Testing, Manual Controls Testing, and Substantive Testing C The level of testing of IT application controls and manual controls is less when ITGC are effective. IT systems reliance? Rollfanvard IT entity -level controls and general controls. During Phase I, we will document any significant risks that are identified, as well as our planned response. Phase II — Account -level Controls Assessment and Testing Account level controls are the policies and procedures that address risks related to one particular type (or small group) of transactions or accounts. Once we have gained an understanding of your operations and controls at the account level, the engagement team will assess inherent risk and expected control risk by assertion. We will then corroborate the information we have collected and evaluate if controls were implemented as designed and that the design is appropriate. Corroboration must be accomplished even when testing of controls will not be performed. Corroboration includes observation and obtaining evidence such as documented approvals and any other relevant information that may be retained to show that a control has been implemented as designed. Inquiry alone is not sufficient as a form of corroboration. Crowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 33 The assertions identified in SAS 106, "Audit Evidence," may be classified in the following three broad categories: Assertions about classes of transactions and events for the period under audit; rig Assertions about account balances at the period -end; Assertions about presentation and disclosure. Inherent risk is the susceptibility of a relevant assertion to a material misstatement, assuming there are no related controls. Control risk is the risk that a material misstatement could occur in a relevant assertion and will not be prevented or detected on a timely basis by the City's internal controls. When assessing inherent risk, the Crowe team will consider: • The City and its environment xi External factors (for example, regulatory changes that may require major changes in operations); Complexity of underlying calculations; a', City's experience with the transactions; ;_a Susceptibility to theft or fraud; i Volume of transactions; Degree of judgment required and extent of estimates involved; Competence of client personnel; and ,r5 Prior -period misstatements. When assessing control risk, the Crowe team will consider: Prior findings in the specific account; Results of grant audits performed by state or federal auditors; • Record -keeping and accounting; kg Control procedures and environment; 53 Materiality of financial impact; • Likelihood material amounts of cash or other assets could be misappropriated through fraud or theft; R High public or political sensitivity to the subject matter; and a Newness of the activity or changes in related conditions. Risk assessment procedures are performed to provide a basis for assessing the risk of material misstatement (combined assessment of inherent and control risk) for each relevant assertion. Then, in the next phase, we design further audit procedures tailored to address each relevant assertion based on the risks identified. Phase III — Performance of Audit Procedures During this phase, the following procedures will be completed: • Determining overall responses to assessed risk of material misstatement for the financial statements as a whole and at the opinion unit level; Designing further audit procedures to respond to those risks; • Testing the operating effectiveness of controls; 7A Performing substantive tests. Based on our understanding and assessment of Entity -level controls, account -level controls, and any fraud risk factors identified, we develop audit procedures and programs clearly linked to and responsive to the assessed risk of material misstatement at the relevant assertion level. \ Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 34 Designing Procedures - In designing procedures, we consider factors such as: • The significance of the risk; The likelihood a material misstatement will occur; • The characteristics of the class of transaction, account balance, or disclosure involved; • The nature of the specific controls used and whether they are manual or automated; 71 Whether we expect to obtain evidence to determine if controls are effective in preventing or detecting material misstatement. Determination of Sampling Techniques - Sample sizes of items to test that are representative of the population will be determined as early as possible to provide your staff with sufficient time to pull the requested documentation. We utilize guidelines established by auditing standards, which specify requirements for statistical and non -statistical sampling, to perform tests of internal controls and substantive tests as part of the audit of your financial statements. Phase IV —Completion, Accumulation of Results, and Reporting After completing audit procedures, the engagement team will perform certain procedures necessary to conclude the audit. These procedures include final analytical procedures, performing a subsequent events review, evaluating attorney letter responses, assisting in preparing and/or reviewing the completed financial statements, and obtaining representations from management. During this phase, the auditor also accumulates all known and likely uncorrected misstatements, other than those that are trivial, and considers the nature and amount of the misstatements in relation to the affected opinion unit. The objective of the evaluation of uncorrected misstatements is to determine whether the financial statements taken as a whole and those of each opinion unit are free of material misstatement. Uncorrected misstatements will be communicated to those charged with governance at the conclusion of the audit. Also during this phase, the engagement team will evaluate identified control deficiencies and determine whether these deficiencies, individually or in combination, are significant deficiencies or material weaknesses based upon both quantitative and qualitative factors. The significance of a control deficiency depends on the potential for a misstatement, not on whether a misstatement actually has occurred. Any significant deficiencies or material weaknesses must be communicated in writing to those charged with governance. The audit culminates in our report on your audited financial statements, which will include an opinion on the fair presentation of the basic financial statements as they conform to accounting principles generally accepted in the United States of America. As determined by requirements of "Government Auditing Standards" issued by the comptroller general of the United States (the "Yellow Book"), we will also include a report on compliance of your internal control structure with applicable laws and regulations based on the auditors' understanding of the control structure. The City's Audit Advisory Committee (AAC), as codified in Section 2-950(4) of the City Code, shall maintain liaison with the selected independent auditor, including but not limited to monitoring of the independent auditor's work progress, and reviewing the preliminary and final reports issued by the independent auditor. Crowe Horvvath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 35 At the completion of the audit, we will submit the following draft reports to management: • A report on the audit of the financial statements for each of the three (3) fiscal years. The report shall contain an expression of our auditor's opinion as to whether the information contained in the financial statements is presented fairly and in conformance with accounting principles generally accepted in the United States of America. If we cannot express such an opinion, the reasons will be so stated in the report. Further, our auditor's opinion, with respect to the supplemental financial information presented in the combining and individual fund financial statements and schedules shall also make a reference as to their fairness in all material respects in relation to the basic financial statements. • A report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. A report on compliance with requirements applicable to each major Federal program and State projects and on internal control over compliance in accordance with OMB Circular A-133 and Chapter 10.550, Rules of the Auditor General. Sixty (60) copies are required as well as an electronic copy. In the required report on internal controls, we will communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses will be identified as such in the report. Non -reportable conditions discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the report on internal controls. The reports on compliance shall include all instances of noncompliance. Irregularities and illegal acts. Auditors will make an immediate, written report of all irregularities and illegal acts, or indications of illegal acts, of which they become aware to the following parties: 13 City Auditor General RI Finance Director rga CFO City Manager • Audit Committee • Mayor City Commission Once the reports have been reviewed by management and are approved in final form, we will be available to meet with those charged with governance to review the reports and address questions. Auditing standards require the auditor's report not be dated earlier than the date on which the auditor has obtained sufficient appropriate audit evidence to support the opinion. Among other things, sufficient appropriate audit evidence includes evidence that the audit documentation has been reviewed and the City's financial statements, including disclosures, have been prepared and the organization has asserted it has taken responsibility for the financial statements. We will discuss your acceptance procedures with you at the start of the engagement to determine who within the City assumes responsibility for the statements. This will ensure the engagement is properly planned to provide sufficient time for review and acceptance procedures by your organization so final reports are available in advance of any and all reporting deadlines. Crowe Horvath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 36 Single Audit Approach The Crowe audit team has experience with more than 100 single audit clients and with several Federal and state cognizant agencies. During the audits, we have worked closely with a variety of Federal agencies including the departments of Agriculture, Education, Labor, Transportation, Health and Human Services, and Housing and Urban Development, and the Environmental Protection Agency. We will begin our Single Audit procedures and program specific grant procedures by developing a comprehensive understanding of laws and regulations that have a direct, material effect on the determination of amounts in your financial statements. This understanding will be based on: • Identification of Federal/state award programs and total federal/state expenditures; Determination of major Federal award programs; Ei Discussions with your staff; • Review of Board minutes, prior audits, and grant and contractual agreements; and • Review of the relevant Federal program requirements from the "OMB Circular A-133 Compliance Supplement" issued by the Office of Management and Budget and the "Catalog of Federal Domestic Assistance." Crowe's Single Audit approach is based on guidance available in OMB Circular A-133 and Government Auditing Standards issued by the Comptroller General of the United States. When testing your major federal/state programs, we follow the suggested audit procedures included in the Compliance Supplement. For Federal or state programs for which guidance is not available, we will establish programs using applicable grant agreements and federal regulations. Key Elements of the Single Audit Process Crowe's audit team will work closely with your management team through the entire Single Audit process which includes the following elements: Phase 1V Reporting Phase I - Planning IR Gain an understanding of your major internal control systems and environment related to your major Federal/state grants; H Review your administrative systems for Federal and other grant programs; Assess risk related to Federal programs; Conduct a brainstorming session in accordance with SAS 99, including Federal and other grant program administration; vg Obtain the 'Schedule of Expenditures of Federal Awards" (SEFA); gi Review your prior year SEFA and "Schedule of Findings and Questioned Costs"; Prepare an analysis of federal programs according to type (i.e. Type A or Type B Program); Determine major programs by type based on the audit risk analysis in the assessment performed; and Determine the reliance to be placed on your systems of internal control for Federal and other grant programs through documentation and control testing. Crowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 37 Phase It - Fieldwork g Review audit programs from the Compliance Supplement to determine the adequacy of the programs; Review and document the requirements of the programs to be tested; zi Revise programs as necessary based on program requirements; :p Interview staff, management, counsel, and officials based on planning; Determine sample selection methodology and the types of procedures that will be performed using selected transactions and documents; rt Samples will be selected based on the chapter that was added to the 2009 edition of the GAS A- 133 Guide, titled, "Audit Sampling Considerations of Circular A-133 Compliance Audits" (Chapter) to address sampling in a single audit environment. The Chapter provides context around when sampling may apply in a single audit; planning considerations; suggested minimum sample sizes (including sample size tables); sample selection methods; evaluation considerations for control deviations and compliance exceptions; and documentation elements relating to sampling. • Select the transactions and documents for testing; 3, Perform the audit procedures as documented in the audit programs; c2 Document testing results; and g Evaluate the results of testing and determine areas that require further examination. Phase 11l - Review of Testing Results • Establish the review protocol for evaluation of results; Review potential findings and questioned costs and communicate with your management; Review compliance requirements and compare expected results to the exceptions noted to evaluate materiality; and Draft a summary of the testing results. Phase IV - Reporting L Review Federal, state, and other grant reporting requirements; • Determine which internal control findings are significant deficiencies or material weaknesses; r; Prepare findings and draft the auditor's reports; Review draft reports with your management; and • Evaluate management feedback and proposed corrective action, make revisions as necessary, and finalize the reports. CiRT® In most engagements, a significant amount of time is spent gathering key documents, reports, and reconciliations; preparing certain schedules and analyses; and responding to various questionnaires. To meet the challenges of managing this complex information -gathering process, Crowe has developed a secure web -based repository, the CiRT® solution, which improves communication and effectively organizes this critical information. CRT® benefits Saves time; Facilitates efficient communication; Promotes task delegation and prioritization; Reduces duplicate requests and minimizes disruptions; and Enables efficient project management. 'N Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 38 With this innovative tool, clients can manage workflow through a centralized individual who can assign and delegate requests to other company personnel; track project activity by assigned individual, due date, and status with a user friendly, easy -to -use, dashboard interface; quickly view and monitor project progress with an at -a -glance report feature; and access how-to videos and training materials through the enhanced learning center. Through a single portal, CIRT® allows you to gain visibility into multiple projects. Originally designed to streamline complex audit processes, CiRT® is now adapted for Crowe tax, risk management, and performance projects. That means the City can expect fewer duplicative requests for information and improved consistency and efficiency. We view CIRT® as a competitive advantage and intend to continue innovating, remaining in the forefront of process automation. .,Grove lrlfoimatlon ARque-st Tranker (r;itiT�j J=,x1•,n r.m GCS �`:,tv"d+yi*sv11Pm ia�a��i easnxaigy'is 011 041 c onipan1Inc. kE h1 0111:110 fAy No etla 0 Aee001101lnr0a,6 al 100001 Osem ■toe.0 ss2w14;.0 01040. 11004000 11104004409 1001$04101 Rm. 574-555.1DORS, A Wetc6111ECe0r01 Cenaeller (ABC ConMPenM I.. -1271 0121 �Q riEiT M'S - t=Q13E.t7iord3' I RFt�---NC TF-Ar M6r`.l3fTEA"l A Crowe Horvath. A Important Notes and Alert$ Please be aware that CiRT la only supported on Internet Explorerveraiene Sx and 9.x. Please sea the leeanleal $p tlaoatlon 1ak bile* ter mole Ott014. 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Vero .Is 0000.0040 I1a18412 1. 0 .a.s.l teams ;1e4dzels 8 .wp.w 6.�nmni. i FI ne vliniria.alfeewvl• Ra.vr 18m1e, _ en,l.ny.4 a1M01.MC001.r Ie.r me 2.:G onem012; .r:wnr.00 nroxelo I �, Crowe Horwath. ©Copyright 2014 Crowe Horwath LLP OOCOn welsh,, 00e0001 A.= u0'ml04 elmwa 2,p tlw�wvtndp Wrro1A▪ 1i3mY .0120 0*• 1141 1*1 N2*411 4*,0001, 00 eh 00 Ywln {"i;;; •1 t unaw.nk IWet M 00 a..lrv.lbdR 004060 10600..x..m14 fyn w*ala 0,0wxl ..14w....wnv:.ww w :.v.„ 1,1 ..::v Po"'ow11,"rn..,.. yw�w.,ln....mn form. a 11a..a.n1. .2 4e1 wn 00s*b11K11*0 :.1 rsxm+.l.ln ecneuwn„a ro. www . c ro we h o Twat h . co m 040aelt 5/100411 n w.."a a«.mcwen.• o-n.e.w0 0400 :vro :: aiin1 ,1o"..dsrot. 42.4e10.4.11p p0.1a 040.410 Mang ,f+11 t External Auditing Services City of Miami 39 Specific procedures and techniques used to develop information for annual management letters. We believe that our clients and Crowe share a common goal —minimizing the entity's financial reporting risk. Our service style is designed to help you perform at your best in the financial reporting area, and to also conduct a thorough audit. We do not anticipate problems in the performance of the audit. However, if a conflict in the presentation of financial information or any other issue should arise during the audit process we make every attempt to resolve the issue within the engagement team and your personnel. We believe in creating a positive, interactive relationship with the City's staff and Commission Members, while maintaining a high level of professional skepticism and independence that is essential to the audit process. While a good working relationship with the City's staff is very important to a long-term audit relationship, we believe that our first level of accountability is to the Board that has engaged us to perform audit services to assist in their fiduciary duties over the City. In some cases, we have to make difficult decisions on balancing our responsibilities as independent auditors with the agreement of, or working relationship with, management. Our duty is to present factual information as well as our interpretation of those facts to the Board in order to provide the Board with enough information to affirm financial reporting of transactions or disclosures reported by City's management. We always meet with the client's staff to review a draft of any document being developed to ensure that information is properly disclosed, that our interpretations are understood, and allow the responses of City's management to be incorporated as requested While our accountability ultimately resides with the Commission, in order to provide quality services for the City, we must be able to understand both the goals and objectives of the Commission, as well as how management of the City implements plans to achieve the goals and objectives, and how they may affect financial reporting. Therefore, it is our goal to invest time throughout each year to meet with the City staff regarding operations and the changes that affect the accounting and financial reporting area. In addition, we find it valuable for you to have some representative non -financial staff involved in the planning process to obtain their unique perspective on your operations. Our audit approach assumes that representatives of the City will fully participate in the planning, fieldwork, and completion of the audit process. Full participation means that the City provides the resources necessary to allow Crowe to complete the audit in a timely and effective manner while meeting each other's expectations. We encourage a continuous audit process throughout the year that involves periodic, scheduled meetings, periodic attendance at board meetings, and informal communication with a variety of City team members. Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 40 b) Provide a tentative schedule for performing key aspects of the audit. Audit Phase and Tasks July Aug Sept Oct Nov Dec Jan Feb Mar Phase 1 Planning discussions with Management Understanding the entity and environment Develop audit plan Request City assistance & documentation needs Develop understanding of internal controls & system Perform information technology evaluation & follow-up Preliminary analytical reviews on financial statements Phase 2 Conduct tests of internal control Conduct risk assessments Conduct Preliminary Single Audit Testing Review and finalize audit plan by August 31 Phase 3 Perform analytical procedures Perform substantive tests of account balances Perform testing of transaction classes Single Audit Procedures Review subsequent events, contingencies & commitments Review preliminary results with financial managements Reporting Phase Perform final analytical procedures Review the financial statements Hold audit exit conference with financial management Issue opinion letter on financial statements* Issue internal control & compliance letter* Issue single audit reports* Issue management letter* Report on results of the audit to the audit committee *Reports will be issued by March 1 of each year. Crowe Horvvt th. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 41 c) Provide detailed responses to each of the City's requirements as stipulated within the Scope of Work, Section 3.2 of this RFP. 1. Express an opinion on the fair presentation of the basic financial statements in conformity with GAAP.-Refer to the section above labeled Financial Audit Approach 2. Express an opinion on the fair presentation of the government -wide and fund financial statements and schedules in conformity with GAAP. Provide an in -relation to opinion on the supporting schedules. -Refer to the section above labeled Financial Audit Approach 3. Perform limited procedures involving supplementary information, MD&A and other required supplementary information and required by GAS and GAAS.-Refer to the section above labeled Financial Audit Approach 4. Perform a Federal and State Single Audit. Refer to the Section above labeled Single Audit Approach We understand that the Pension Trust Fund for the General and Sanitation Employees, Firefighters, and Police Officers, as the Trust Funds will be audited by other independent auditors who will furnish their report to the principal Independent Auditor during the engagement. To meet the requirements of this request for proposals, the audit shall be performed in accordance with: 1. Generally Accepted Auditing Standards as set forth by the American Institute of Certified Public Accountants; 2. Government Auditing Standards, issued by the Comptroller General of the United States; 3. The provisions of the Federal Single Audit Act of 1984 (as amended in 1996 and subsequently); 4. The Florida Single Audit Act; 5. The provisions of U.S. Office of Management and Budget (OMB) Circular A-133; 6. Audits of State and Local Government Units, and Non -Profit Organizations, Audits of State and Local Governments (Revised), issued by the American Institute of Certified Public Accountants; 7. Regulations of the State of Florida Department of Banking and Finance; 8. 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 215.97 Florida Statutes); 9. State of Florida Auditor General Selection Guidelines (2007) prepared by the Auditor Selection Task Force; 10. Section 11.45, Florida Statutes; 11. Chapter 218.39 and any other applicable Florida Statutes; 12. Generally accepted governmental accounting standards; 13. Any other applicable federal, state, local regulations or professional guidelines not specifically listed above as well as any additional requirements which may be adopted by these organizations in the future. Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www. c rowe h o rwath . co m External Auditing Services City of Miami 42 d) Provide the extent to which statistical sampling techniques shall be used. Crowe will use a risk based process to determine what transaction or cycle populations that we want to test controls or perform substantive tests. Samples will be used both for financial audit procedures and compliance procedures. We will use statistical random sampling techniques and judgmental techniques depending on the nature, amount, and extent of activity or the nature and frequency of the control. We use industry standards in determining sample sizes for control tests and sampling sizes for substantive tests are highly variable based on the activity and risk associated with the activity. We use custom data sheets to determine sample sizes but always apply auditor judgment. e) Provide the type and extent to which analytical procedures shall be used. Analytical procedures are integral part of the four audit phases from planning to reporting. We have developed specific analytics and ratios from peer data to determine the reasonableness of activities for municipalities. We also set expectations on budget to actual variances and year to year variance in our planning process. In some cases, such as revenue streams, strong analytics can be used as substantive tests. \ Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www. crowehorwath. co m External Auditing Services City of Miami 43 6. Fees for Services Flat Fee for Five Year Term Audit Services for the Fiscal years ending September 30, 2014, 2015, 2016, 2017 and 2018 `. ;a Express an opinion on the fair presentation of the basic financial statements in conformity with GAAP.- Express an opinion on the fair presentation of the government -wide and fund financial statements and schedules in conformity with GAAP. Provide an in -relation to opinion on the supporting schedules. - Perform limited procedures involving supplementary information, MD&A and other required supplementary information and required by GAS and GAAS. Perform a Federal and State Single Audit. Year 1 Audit Fee Total Year 1' Fee Audit Services for the Fiscal year ending September 30, 2014 =aCos s Additional Expenses The amounts billed .each year will not exceed the amounts noted above unless unanticipated changes in scope of work are required such as outlined below: Fee Assumptions It is our firm's philosophy that communication throughout the year with management on routine questions is integral to the audit's success. We do not bill for a reasonable amount of such advice and counsel during the year. In addition, the significance of our Public Sector Series will continually prompt management to think about emerging issues that we hope result in robust conversations about current or planned activities. CPE earned from Crowe's Public Sector Series is free of charge. We will present an engagement letter annually to reconfirm our engagement terms. This fee takes into account the agreed -upon level of preparation and assistance from your personnel. We will advise management should this not be provided or should any other circumstances arise that may cause our time to exceed this estimate. If there is a significant change in your organizational structure or size due to acquisitions or other events, we reserve the right to revise our fees. Circumstances may arise under which we must perform additional work and, thus, require additional billings for our services and which may delay the issuance of our report on the financial statements. °; Crowe Horvvath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 44 Examples of such circumstances include, but are not limited to: E. Changing audit or tax requirements 2s New professional standards or regulatory requirements }e New accounting standards or interpretations Work due to the identification of, and management's correction of, fraud, irregularities, errors or inappropriate application of accounting pronouncements vt Erroneous or incomplete accounting records • Additional Major Programs — With 2013 being the base year R.2 Evidence of material weaknesses or significant deficiencies in internal controls r 'i New or unusual transactions m. Significant growth which adds to audit complexities Failure of your staff to prepare information in a timely manner Rescheduling of audit fieldwork without reasonable notice 7441 Significant changes in operations To the extent that the amount of time required to provide the services described in this proposal increases due to such changes or that additional time is required to complete any new tasks required by such changes, we reserve the right to adjust our fees appropriately. We will present you with our estimate of any fee revisions before beginning our work in the impacted area(s). The City will not receive "surprise" or unexpected billings from Crowe. Our fee quote does not include any work that is performed outside of the services listed above, or other special projects that may be requested. Fees related any additional work will be discussed prior to commencement of the project, and will be based on actual hours worked at current billing rates of individuals providing the services. Rates for Additional Professional Services At Crowe, we consider regular contact with our clients to be an important component of our service delivery. Accordingly, our proposed fees include routine accounting, reporting and other compliance assistance and advice for phone calls and in -person meetings. Assistance with more complex questions, issues or projects will be provided at a mutually agreed -upon price based on our hourly billing rates. The ranges of hourly rates of our professional staff for the last three years are listed below. The rates within each position vary by geographic location, levels of expertise and experience. Position Partner 20'14 Billing Rates $400 - $475 Serf 0o fanage 250 $200 - $250 Staff $110 - $125 Our policy on billable consulting services is simple — no surprises. As stated above, routine discussions, phone calls, meetings and questions throughout the year are part of our year-round client service approach. If we are requested to perform significant research on a technical matter, perform significant out -of -scope services, or prepare additional deliverables, reports or tax returns, we will present our estimated fees and agree upon any related fees in advance of performing the work. ,. Crowe Horwath. www.crowehorwath.com 0 Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 45 Additional services that Crowe can provide include the following: Government Services Overview Crowe has been serving the needs of government organizations for more than 40 years. We work with many different types of government organizations, including, municipalities, counties, school and library districts, special service districts, state agencies, and quasi -governmental entities. We have over 125 individuals who serve over 400 state and local governments nationwide. This team of governmental experts — many of whom are former elected or appointed officials — can provide you the thought leadership and technical expertise you need. Today's government leaders are charged with delivering superior service in the midst of declining revenues and funding, greater public demand, and increasingly complex regulations. At Crowe, we strive to help governments better serve their communities by providing solutions that improve performance, optimize revenue, and manage risk. Crowe's innovative solutions help address the financial and operational issues most critical to governments in challenging economic times. Our extensive scope of competencies — business process, technology, finance, accounting, fraud investigation, risk consulting, economic development, and performance- allows us to deliver effective, cost-efficient services. Improve Performance E. Plan for Success: Strategic Advisory Services E Practice Operational Efficiency: Program Effectiveness Services E Utilize Advanced Technology: Business System implementation Services Grow a Talented Workforce: Organizational Effectiveness Services Optimize Revenue ta Maximize Fiscal Resources: Financial Management Services Cultivate Economic Growth: Economic % v lapment Services Manage Risk Bi Mitigate Financial Risk: Financial Risk Management IR Ensure Regulatory Compliance: Regulatory Compliance Risk Management E Monitor Stimulus Funding: Accountability Risk Management Protect Data and Technology: Information Technology Risk Management Improve Performance Strategy Plan. for Success: Strategic Advisory Services Practice Operational Effrcieney Pro am E fiveriess: Utilize Advanced Technology: Business System Implementation Services A Crowe Horwath. © Copyright 2014 Crowe Horwath LLP Services Ft Strategic Planning Performance Review, Shared Services Technology Planning �roceW0 timization; % sso 179:1-apatron PrograManagement- www.crowehorwath.com ►rganizat�gnaf Chang10~ lanageme Enterprise Systems Enterprise Content Management Constituent Support Systems Web -site Development Performance Management External Auditing Services City of Miami 46 Optimize Revenue Strategy Maximize Fiscal Resources: Financial Management Services -0Dveelo rnent Ser`vtces Mitigate Financial Risk: Financial Risk Management EnsureyR gulato ZGompliance R g latory£ pl►ance R sk Ma agem n Monitor Stimulus Funding: Accountability Risk Management Protect Datano$Techno og Infor a ions _ecT R ementrzs- _Of ategy; yen-�a d, Debt Issuance and Management Financial Management Rate/Revenue Studies Budgeting and Forecasting lr crefrent mane n® FiscallW0t_ idie Sma F nGrov t Initiatives •i Financial and Single Audit Reporting Forensic Accounting and Fraud Investigation" Arbitrage Rebate Verification Crowe Horwath. www.crowehorwath.com 0 Copyright 2014 Crowe Horwath LLP et'017 rate Go pima EnterpnseRts anagem.:e. ederalan _Sta e Progrrar m tt Com lia e Fund Monitoring and Reporting Communication Program Management Fraud Prevention/Recovery Benchmarking u nera r,�yE 11Aanagernen Bus rress�Co External Auditing Services City of Miami 47 Appendix A: Resumes John C. Weber, CPA — Partner Professional Summary Mr. Weber has over twenty three years of experience focusing his entire career in providing assurance and consulting services to public sector clients including government, college and university and non- profit organizations. Mr. Weber has also served as Crowe's national partner in charge of the governmental audit practice. Audit Experience County Broward County Pinellas County State al Florida State Board of Administration Illinois Office of the Auditor General Illinois Department of Corrections w. Illinois Department of Revenue gm Illinois Environmental Protection Agency • Illinois State Lottery • Illinois State Treasurer's Office Illinois Student Assistance Commission rg Illinois Tollway Authority Indiana State Lottery Commission • Kentucky Lottery Corporation Special Districts 21 Chicago Transit Authority Ei Children's Board of Hillsborough County • Dallas Area Rapid Transit at Lakeland Area Mass Transit District • Metra 'a Metropolitan Water Reclamation District of Greater Chicago Miami Dade Transit Northern Indiana Commuter Transportation District ;IN North Texas Tollway Authority • Pace (Suburban Bus Division of the Regional Transit Authority) Crowe Horvath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 48 Municipal ya Village of Bridgeview K City of Burbank u3 City of Des Plaines 0. Village of Elmwood Park City of Ft. Lauderdale Village of Glendale Heights E% Village of Hillside Village of Hoffman Estates City of Lakeland iE Village of Franklin Park Village of Forest Park • Village of Rantoul Village of River Grove 51 City of Tampa Federal g? Special Inspector General for Afghanistan Reconstruction Consulting Engagements Accounting/Operational Consulting • Audit Preparation r Capital Budgeting Comprehensive Annual Financial Report Preparation Departmental Costing Analysis Internal Audit Department Outsourcing • Performance Audits Business Process Reengineering • Internal Control Assessments and Implementation 13 Departmental Re -Structuring -4 Policy and Procedure Manual Development F. Transition Auditing Information Technology • System Needs Analysis/System Implementation w Fund Structure and Chart of Accounts Consulting Clients Broward County, Florida - Sheriff's Office Chicago Park District 7 City of Boulder, Colorado City of Coral Springs, Florida City of Dayton, Ohio A Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 49 E City of Fort Worth, Texas gi City of Miami Beach, Florida City of Tarpon Springs, Florida 51 Indiana Bureau of Motor Vehicles 24 Marion County, Indiana - Sheriff's Office i : Metropolitan Water Reclamation District of Greater Chicago Publications and Speaking Engagements Mr. Weber has a number of publications including: OMB Releases New Compliance and Reporting Information for Recovery Act Spending, Government Advantage Update, Aug. 17, 2009 • Preventing Deficiencies for Single Audits, Not -for -Profit Advantage, Winter 2007 m Avoiding Pitfalls in Single Audits, Government Advantage, FaIVWinter 2007 • Forming an Audit Committee: A Matter of Dollars and (Good) Sense, Government Advantage, Winter 2006 Licenses and Certifications RI Certified Public Accountant (CPA) I Florida, Illinois Professional Affiliations PY, American Institute of Certified Public Accountants (AICPA) I Former Firm Representative to the Government Audit Quality Center Florida Institute of Certified Public Accountants Illinois CPA Society I Former Member, Ethics Committee Uz Illinois Government Finance Officers Association ra United States Comptroller General Advisory Council on Government Auditing Standards Education Bachelor of Science in Accounting Ti Elmhurst College &, Elmhurst, Illinois Training Mr. Weber has developed and/or lead Continuing Education Training programs related to: A-133 (Single Audit) µa Auditing Standards GASB Standards rat:• Governmental Accounting and Auditing r=: Internal Control Yellow Book Standards A. Crowe Horvath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 50 Kevin W. Smith, CPA — Partner Professional Summary Kevin is a partner in Crowe's Dallas/Fort Worth office; he joined Crowe Horwath LLP in August 2009. He has approximately twenty years of experience providing both advisory and financial statement and compliance audits primarily to governmental, not -for -profit, and the higher education industry receiving federal awards. Prior to joining Crowe, Kevin was a partner with KPMG LLP. Where he served as one that firm's designated A-133 concurring review partners. In addition, Mr. Smith was recently appointed as a member to the AICPA's State & Local Government Expert Panel. Experience Audit Experience Municipal City of Arlington City of Carrollton • City of Cedar Hill City of Cleburne fl City of Dallas • City of Denton >u City of Frisco • City of Midland City of Plano :57 City of San Antonio Dallas County State ✓ California State Teachers Retirement System • State of Arkansas — State Wide CAFR y State of Arkansas — Division of Legislative Audit TA State of Illinois — State Wide Single Audit — Various Agencies Special Districts Dallas Area Rapid Transit • Dallas Fort Worth International Airport 2 Employee Retirement Fund of Dallas :}.3 Houston Housing Finance Corporation Houston Metro Transportation Authority North Texas Toliway Authority The Navajo Nation -5 Work Source for Dallas County Crowe Horvath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 51 School Districts ow Dallas Independent School District Houston Independent School District Consulting Engagements Accounting/Operational Consulting • Audit Preparation • Subrecipient Monitoring Comprehensive Annual Financial Report Preparation • GASB 34 Implementation U Departmental Costing Analysis u Operational, Procedural and Performance Audits Business Process Reengineering azi Internal Control Assessments • Departmental Re -Structuring ;u Policy and Procedure Manual Development • Transition Auditing Information Technology NI System Needs Analysis/System Implementation • Fund Structure and Chart of Accounts Consulting Clients City of Arlington/Dallas Cowboys wi City of Corpus Christi City of Dallas V City of Fort Worth City of Frisco Fa City of Irving • City of Plano m Dallas Convention and Visitors Bureau ISO New England New York Independent System Operator Fi North Central Texas Council of Government North Texas Tollway Authority • Oklahoma State Department of Transportation n State of Arizona Auditor General — Rio Nuevo Multi -Purpose Facilities District 4 State of Arkansas — Arkansas Lottery Commission State of South Carolina — Office of the Comptroller General 7 \ Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 52 Licenses and Certifications f; Certified Public Accountant (CPA) ! California, New York, Texas Publications and Speaking Engagements Publications: TA "Mitigate Compliance risks Through Best Practices in Grants Management." Smith, Kevin W. and Eric J. Russell. Journal of the National Grants Management Association. Winter 2011, Volume 19, Number 2. Speaking Engagements: Mr. Smith has developed and/or lead internal and external Continuing Education Training programs related to: RV Single Audit Controls al A-133 Auditing IR Yellow Book Standards GASB Standards A sample of selected other speaking engagements include: 4 Southeastern Intergovernmental Audit Forum — September 2011, Ft. Lauderdale, FL "OMB A-133 Update" American Institute of Certified Public Accountants — August 2011 Washington DC, Government Accounting and Auditing Conference — "Sub -recipient Monitoring the Auditee and Auditor's Perspective" Ez American Institute of Certified Public Accountants — August 2011 Washington DC, Government Accounting and Auditing Conference — "Impact of Economic Downturn on Audits of Local Governments" 21 Oklahoma Society of CPA's — June 2011, Oklahoma City "Sub -recipient Monitoring the Auditee and Auditor's Perspective" Electric Utilities Consultants, Inc: - October 2010 Baltimore, • Maryland "Government Audits of Federal Grant Recipients" Electric Utilities Consultants, Inc. - June 2010 Chicago, Illinois "ARRA Reporting, Grant Management & Audit Processes" Government Finance Officers Association of Texas 2009 Fall Conference Fort Worth, Texas "Audit Guidance under a New ARRA" McCall, Parkhurst & Horton LLP Presents "Build America Bonds A-Z" — Spring 2010, Irving, Texas Association of Local Government Auditors — 2010 National Conference, San Antonio, Texas "Auditing Franchise Revenues" vi. State of Arkansas Department of Finance and Administration — 2010 "GAAP Update & ARRA Issues" Little Rock, Arkansas Southwest School of Government 2007 and 2008 "Governmental Accounting — 101" Lubbock, Texas - International Bridge, Tunnel, and Turnpike Association 2007 — Organization Management Workshop "When Does a Benefit Become a Liability — GASB Statement 45" Austin, Texas Government Finance Officers Association of South Carolina 2002 — "GASB 34 Background and Implementation Issues", Hilton Head, South Carolina �f. Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 53 Professional Affiliations ri American Institute of Certified Public Accountants I State and Local Government Expert Panel, Government Accounting and Auditing Conference Planning Committee Member m Texas CPA Society I Member tz Government Finance Officers Association I Certificate of Excellence Reviewer E Government Finance Officers Association of Texas I Financial Reporting and Regulatory Compliance Committee, Program Development Committee rg Association of Government Accountants ( Member Baptist Foundation of Texas I Institutional Audit Group w The Southwest School of Government I Past Advisory Board Member Education • Bachelor of Science in Accounting, with Honors • East Central University • Ada, Oklahoma 4�. Crowe Horvvath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 54 Aazan C. St. Rose, CPA — Senior Manager Professional Summary Mr. St. Rose is an Audit & Financial Advisory/Public Sector Services Manager based out of Crowe's Fort Lauderdale office. He has over eight years of experience auditing governmental, not -for -profit and for - profit entities. He specializes in financial statement and A-133 audits of counties, municipalities, special districts, and not -for -profit entities. Experience Audit Experience Counties Broward County, Florida* Transit Department, Miami -Dade County, Florida Municipalities • City of Fort Lauderdale, Florida* E' City of Delray Beach, Florida* • City of Boynton Beach, Florida* • City of Lakeland, Florida* i City of Tampa, Florida* El Town of Palm Beach, Florida Special Districts ez Solid Waste Authority of Palm Beach County, Florida* • Health Care District of Palm Beach County, Florida Delray Beach Community Redevelopment Agency, Florida Lakeland Area Mass Transit District, Florida Not -for -Profit Boca Raton Museum of Art, Inc., Boca Raton, Florida 1.1 Israel Children's Centers, Inc., Deerfield Beach, Florida ▪ Maltz Jupiter Theatre, Inc., Jupiter, Florida Palm Healthcare Foundation, Inc., West Palm Beach, Florida ice' Planned Parent of South Florida and the Treasure Coast, West Palm Beach, Florida • The Raymond F. Kravis Center for the Performing Arts, Inc., West Palm Beach, Florida *Includes water and wastewater, stormwater, sewer, solid waste and electric utility auditing experiences Licenses and Certifications . Certified Public Accountant (CPA) I New York Crowe Horwath. www.crowehorwath.com 0 Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 55 Professional Affiliations 17 American Institute of Certified Public Accountants (AICPA) I Member wi Florida Institute of Certified Public Accountants (FICPA) I Member Florida Government Finance Officers Association I Member • Government Finance Officers Association I CAFR Special Review Committee Reviewer Education t Bachelor of Science, CPA - Accounting and Finance • New York University • New York, New York Crowe Horvath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 56 Matthew A. Geerdes, CPA — Senior Manager Professional Summary Mr. Matthew Geerdes is a Senior Manager in the firm's Audit Group and has over twelve years of experience in public accounting providing auditing and consulting services to governmental and not -for profit organizations. This includes municipalities, community colleges, school districts, special districts, state agencies and state universities as well as educational foundations. He has been the manager on financial audit engagements that have followed Government Auditing Standards and OMB Circular A- 133, Audits of States, Local Governments, and Non -Profit Organizations. He has experience with Comprehensive Annual Financial Report (CAFR) and Schedule of Expenditures of Federal Awards (SEFA) preparation. Experience Audit Experience Municipalities tea' City of Calumet City F Village of Orland Hills Village of River Grove izsi Village of Hillside lt City of Burbank City of Decatur Ni Village of Bridgeview Village of Franklin Park • Village of Homewood RI City of Lakeland • City of Fort Lauderdale , City of Tampa Counties • Pinellas County • Broward County State Agencies x Illinois Department of State Police — Metropolitan Enforcement Groups (MEG) • Illinois Department of Public Health • Illinois State Board of Education State Universities • Southern Illinois University #, Crowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 57 Consulting Experience City of Fort Worth, Texas I CAFR Preparation and External Audit Preparation Assistance Project Manager Mr. Geerdes was responsible for working on a team which assisted the City of Fort Worth in producing and publishing its Comprehensive Annual Financial Report (CAFR). He also assisted the City in facilitating meetings with various parties, including the auditors, Audit and Finance Committee, management, various City Departments and external parties. He assisted the City by providing accounting related subject matter expertise to facilitate the accuracy and completeness of the City's financial statement presentation and disclosures; by preparing the footnotes to the financial statements. He also assisted in preparing external auditor required schedules and responding to external auditor requests and questions. Publications and Speaking Engagements • Speaker, Illinois Association of School Business Officials Risk Management Seminar Speaker, Illinois Association of School Business Officials Annual Conference El Speaker, Illinois Association of School Business Officials School District Workshop • Speaker, Arkansas Department of Financial Accounting Speaker, Illinois Municipal Treasurers Association Annual Conference Coauthor of "A Look at Pertinent GASB Statements: GASB 51 and GASB 54" — Illinois Association of School Business Officials Update Spring 2011 Coauthor of "In the Aftermath of SAS 112: A Focus on Internal Controls" — Crowe Horwath Government Advantage Fall 2008 Licenses and Certifications a Certified Public Accountant I Illinois Professional Affiliations • American Institute of Certified Public Accountants (AICPA) i Member Illinois CPA Society i Member, Government Report Review Committee 7 Illinois Association of School Business Officials i Member, Auditing/Accounting Professional Development Committee Government Finance Officers Association I Member, Special Review Committee • Illinois Government Finance Officers Association I Member Education • Master of Business Administration Concentration in Finance g Bachelor of Arts in Accounting FA. Lewis University Romeoville, Illinois Training Mr. Geerdes has developed and/or lead Continuing Education Training programs related to: r; A-133 Auditing • GASB Standards Crowe Horwath, www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 58 Jeffrey A. Palgon, CPA, CISSP, CISM, CISA — Senior Manager Professional Summary Mr. Palgon serves as an IT project manager for Crowe's attestation clientele. Experience Lg Performing Information System's general and application controls in a variety of processing environments from the personal computer to mainframe application -based systems. Coordinating and completing client Information System General and Application controls SAS 70 examinations, IS General Controls, and other information security reviews. • Presenting results and recommendations to line level managers, senior management, and Board of Directors. • Assisting with coordination, scheduling, mentoring and management of staff members. F Supervising and reviewing staff activities, work programs, and reports. Licenses and Certifications Certified Public Accountant (CPA) I Georgia Certified Information Systems Security Professional (CISSP) • Certified Information Security Manager (CISM) Certified Information Systems Auditor (CISA) Professional Affiliations American Institute of Certified Public Accountants (AICPA) I Member Information Systems Audit and Control Association (ISACA) I Member The International Information Systems Security Certification Consortium [(ISC)2] I Member Education zi Master of Science in Accounting IN University of Florida Y Gainesville, Florida A Crowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 59 Catherine Corinne Ahrend, CPA, CFST — Senior Staff Professional Summary Ms. Ahrend is senior staff in the firm's Public Sector Services group. Ms. Ahrend has ten years of public accounting experience in the area of governmental and not -for -profit accounting. She has training and experience in financial, compliance, and internal audits. While working on these projects she has gathered documentation on internal controls and compliance, assessed the documentation, created and performed testing plans related on the controls and compliance, and prepared reports on procedures performed. Experience Audit Experience Municipalities Eri City of Ft. Lauderdale • City of Lakeland Ei City of Tampa Counties im Broward County • Pinellas County Special Districts • Children's Board of Hillsborough County Lakeland Area Mass Transit District gi Hillsborough County Hospital Authority Fi Hillsborough Area Regional Transit Authority • Miami Dade County Transit Not -For -Profit ti Alliance for Independence • The Florida United Methodist Foundation, Inc. • Lakeland Chamber Foundation, Inc. • Lakeland Chamber of Commerce, Inc. FA Cigar Family Foundation, Inc. vz The Tampa Yacht and County Club The St Pete Yacht and County Club l Lowry Park Zoo Endowment Foundation, Inc. 1% Sun 'N Fun Fly -In, Inc. rs USA Water Ski Association, Inc. • Heartland Workforce Investment Board, Inc. Learning Resource Center, Inc. ✓ Citrus Cars of Polk County :r Florida United Methodist Conference, Inc. Crowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 60 Consulting Experience Florida Agency for Workforce Innovation I Internal Control Review Senior Staff Crowe performed internal control walkthroughs and control testing for Early Learning Coalitions (ELCs) and Regional Workforce Board (RWBs) selected by the Florida Agency for Workforce Innovation (AWI) to assess weaknesses in the organizations' control structures. The procedures were focus on areas related to the grant funding provided to these organizations by AWI. For each location where procedures were performed, a finding and recommendations report was provided to AWI and the location. City of Fort Worth, Texas 1 Audit Preparation and Comprehensive Annual Financial Report Preparation Senior Staff, Project Manager Crowe provides assistance for the City of Fort Worth during the preparation for and the performance of their annual financial statement audit. The Crowe team reviews and performs quality assurance procedures on the City's trial balance that is submitted to the auditors. Also, Crowe prepares and or reviews all workpapers and schedules provided to the City's auditors while also acting as a liaison between the City's finance staff and the audit staff. Crowe also assists the City in the preparation of its Comprehensive Annual Financial Report (CAFR). Crowe also developed a policies and procedures manual for yearend closing procedures for the City's finance staff. Town of Palm Beach, Florida I Outsourced Internal Audit Service Senior Staff Crowe provides internal audit services for the Town of Palm Beach. Crowe meets with management, reviews external reports for the Town, and meets with the Town Board to create a schedule of projects for the year related to various departments of functions of the City (e.g. Payroll, IT, Human Resources. Permitting, etc.). Crowe the creates and performs procedures to evaluate the policies, procedures, and controls structure related, conducts interviews with staff, and prepares a report on any observations noted during these procedures. Licenses and Certifications Certified Public Accountant I Florida zo Certified Florida Sales and Use Tax (CFST) designation I Florida Professional Affiliations El American Institute of Certified Public Accountants I Member Florida Institute of Certified Public Accountants I Steering Committee Member State and Local Government Section Crowe Horwath. ©Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 61 Education a Master of Accountancy University of South Florida i Tampa, Florida Bachelor of Science in Accounting :ff Florida State University Et Tallahassee, Florida Training Ms. Ahrend has developed and/or lead Continuing Education Training programs related to: GASB Standards ACrowe Horwath. www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 62 Gerard A. Boucaud, MBA, CISA, CTGA — Manager Professional Summary Gerard specializes in audits of service providers within the financial institution, diversified financial, healthcare, insurance and information technology industries as well as organizations with in-house systems providing audits of general controls, application controls, and related special consulting services. Experience re Managing SAS 70/SSAE 16 attestation engagements, including supervising and directing fieldwork and reviewing reports and workpapers to ensure AICPA and firm standards are applied. Managing IS general controls reviews for a variety of industries, including financial institutions, diversified financial, manufacturing companies, governmental and not for profit organizations, utilities, insurance, and healthcare organizations. Managing IS reviews in support of Sarbanes-Oxley requirements. Assisting in the drafting of the report for these. engagements. Assisting in creating workprograms and audit approach documents for the Risk Consulting Services Group and training group member on the use of the tools. • Assisting organizations with compliance with the American national Standards Institute (ANSI) developed set of best practice security standards known as Technical Requirement 39 (TR-39) to govern Personal Identification Number (PIN) Security. Assessing Gramm -Leach -Bliley Act Compliance and the requirements of the Interagency Guidelines Safeguarding Customer Information • Performing Information Systems (IS) and SOX 404 reviews of data centers, focusing on the following general control areas: ti Organization and Personnel (including segregation of duties) Program Change Controls and Documentation (including authorization, testing, implementation, and documentation of program changes) Computer Operations (including scheduling, data file utilities, file handling, and retention, etc.) IR Physical Security (including safeguarding assets and detection of physical threats) . Information Systems -Related Insurance (including Equipment Coverage, Extra Expense, Business Interruption, and Errors and Omissions) On-line Security (including security over data, programs, systems commands, and modems) Disaster Recovery Planning (including Hot -Site Agreements, review of the plan, and annual testing) Microcomputers (including security and backup of critical information) Managing Associate Degree Level Training Program with responsibility for academic operations, performance, planning and budgeting Developing Microsoft Access Database and training manuals for large telecommunications company Auditing internal operations of an international shipping company using ISO standards Crowe Horwath © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 63 Professional Affiliations - ix Information Systems Audit and Control Association (ISACA) ( Member ,n Institute of Internal Auditors (IIA) I Member Education Master of Business Administration (MBA), Concentration in Management Information Systems (MIS) i Bowling Green State University • Bowling Green, Ohio Bachelor of Science in Management Information Systems A Florida Memorial College • Miami Gardens, Florida Bachelor of Art in Instrumental Music • Florida Memorial College • Miami Gardens, Florida Crowe Horwath. 0 Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 64 John J. Shumaker, CPA - Senior Staff Professional Summary Mr. John Shumaker has six years of experience in the Audit and Consulting related Accounting field. Mr. Shumaker has experience in the Government, Higher Education, Construction, and Manufacturing industries. More specifically, he participated in Single Audit A-133 Audits, CAFR Audits, For Profit Corporation Audits, Not -For -Profit Audits, issued due diligence reports for the Mergers & Acquisitions industry, Compliance for the Illinois State Board of Education (ISBE), and Consulting CAFR preparation work. Experience John's significant responsibilities include: E Audit planning, fieldwork, supervision and reporting for various nonprofit organizations • Audit procedures under OMB Circular A-133 • Supervising the daily operation of the audit process Audit Experience Municipality - Consulting • City of Fort Worth Texas • CAFR Consulting Municipalities Audit • Village of Bridgeview IL • Village of River Grove • Lextran — Transit Authority of Lexington ui Kentucky Housing Corporation al Louisville Water Company Louisville Metro Government E City of Tampa Agreed Upon Procedures Illinois Gaming Board — Casinos • Hunter Manufacturing LLP F ISBE - Elementary School District 159 • ISBE - Ridgeland School District 122 - rai ISBE - Chicago Ridge School District 127-5 ISBE - Cook County School District 130 ISBE - Posen -Robbins Elementary School District 143-5 For -Profit - Audit Faxitron X-Ray • lchikoh Manufacturing, Inc. Aichi Forge USA Inc. Crowe Horvath © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 65 zi Global Finishing Solutions El Holland Company LP — Railroad Industry • Ecker Enterprises • JMP Coal Holdings ✓ Superior Construction Pepper Construction Rotocraft Leasing Company LLC • Turfway Park LLC Sazerac Inc. Higher Education - Audit College of Dupage zit Southern Illinois University (SIU) • Western Kentucky University (WKU) • Berea College wi Frontier Nursing University Mergers & Acquisitions — Due Diligence Issued Due Diligence Reports Private Equity Related • Copely Capital HIG Capital School Districts - Audit Crystal Lake School District 47 • Consolidated School District 59 Publications and Speaking Engagements a Beta Alpha Psi Presentation at the University of Kentucky Licenses and Certifications CPA I Kentucky Professional Affiliations ra KY Society of CPAs — Governmental Accounting Committee Member Community Involvement and Other Professional Activities FA International Service Chairman for Rotaract (Affiliate of Rotary) Chairman of the Advisory Committee for the University of Kentucky Phi Kappa Psi Chapter Member of the Lexington Forum Member of the AICPA Education Bachelor of Science in Business, Accounting and Finance University of Kentucky Lexington, Kentucky Asti, Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami Saadia Rauf, CPA — Senior Staff 66 Professional Summary Saadia is an audit senior staff in the firm's Public Sector Services group. She has three years of public accounting experience in the areas of not -for -profit, governmental and commercial auditing. 9 Working on field engagements that involves financial statement audits, reviews, and agreed upon procedures for clients in diverse industries. 1 Performing various transaction testing, account analysis, preparing financial statements and disclosures, and documenting various audit procedures and techniques used for testing. • Internal control evaluation and testing. Obtaining the understanding of business systems and processes using narrative and flowcharting techniques. Experience Her experience includes working on following: Governmental Entities: • City of New Port Richey • City of Tampa ty Pinellas County Not -for -Profit Entities: F Eckerd Youth Alternatives (EYA) Arbitration Forums, Inc. Clearwater Marine Aquarium 11 Florida Reliability Coordinating Council, Inc. (FRCC) Educational Entities: Florida Office of Early Learning- Onsite Financial Monitoring Review: • University of South Florida (USF Research Financial Management )- HIPPY Program zi Early Learning Coalition of Hillsborough County Licenses and Certifications N. Certified Public Accountant (CPA) — Licensed in Florida and Colorado Professional Affiliations • Florida Institute of Certified Public Accountants- Regular member & Women's Leadership Committee member American Institute of Certified Public Accountants- Member Education Bachelor of Science, Accounting 1 University of South Florida sl Tampa, Florida Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 67 Richie C. Tandoc, CPA, CFE —Subcontract Partner Professional Summary Richie has over 20 years of experience serving not -for -profit and governmental clients. He is the partner -in -charge of SKJT&G's assurance and advisory practice, with a specialization in the not -for - profit and governmental industry. Richie is a former Senior Manager with KPMG in their Public Sector Practice. He has extensive accounting, auditing and consulting experience, including: financial statement audits, reviews and compilations; business process / internal control analysis; federal and state grant program audits; special products implementation; operational and efficiency audits; and compliance audits. Experience Richie is also the firm's technical resource partner responsible for keeping the firm's professionals up-to- date on accounting, auditing and reporting standards, as well as the human resources partner and the liaison for the firm's governmental subcontract work with the national, regional, and other local accounting firms. Richie has dedicated most of his public accounting career to serving the governmental and not -for -profit industry. A select list of Richie's not -for -profit and governmental clients includes the following: • Alzheimer's Association SE Florida Chapter il- Archdiocese of Miami, Florida Bayfront Park Management Trust Big Five Club, Inc. IN Boynton Beach Community Redevelopment District Catholic Charities Legal Services, Inc. Children's Services Council of Broward County ✓ City of Miami Community Redevelopment Agencies • City of Miami, Florida • City of Miami Beach, Florida kr Coconut Grove Business Improvement District FA The Development Research Center, Inc. • First Call For Help of Broward, Inc. Ft Florida Dept. of Environmental Protection Et Florida International University Foundation Kristi House, Inc. Miami -Dade County General Segment 72 Miami -Dade County Clerk of the Courts a Miami -Dade County Solid Waste Management 1 Miami -Dade County Transit n Miami -Dade Expressway Authority Fl Miami Sports and Exhibition Authority Crowe Horwath. www.crowehorwath.corn © Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 68 Z3 North Miami Community Redevelopment District ail The Ophthalmology Research Foundation, Inc. ✓ Palm Beach County Workforce Development Board School Board of Miami -Dade County 23 School District of Palm Beach County • Workforce One (formerly BETA) Professional and Business Affiliations Certified Public Accountant, Florida ri Certified Fraud Examiner, ACFE Member, Association of Certified Fraud Examiners Ei Member, Florida Institute of Certified Public Accountants Eg Member, American Institute of Certified Public Accountants y Member, Government Finance Officers Association Member, GFOA Special Review Com. - CAFR Program Member, Florida Government Finance Officers Assoc. s Member, FIU Alumni Association ✓ Member, Greater Miami Chamber of Commerce Continuing Professional Education Elt 60 credits in government accounting and auditing subjects in the past two years Education • Master of Accounting at Florida International University Bachelor of Accounting, Florida International University FA Florida International University A Crowe Horvath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 69 Carole Stewart -Heron, CPA, CFE -Subcontract Director Professional Summary Carol has over 17 years of public accounting and consulting experience. She is SKJT&G's most seasoned employee, with her entire public accounting career dedicated to serving governmental, not - for -profit, and various commercial organizations. Carole is in -charge of researching technical issues for the firm in the areas of accounting, auditing and reporting. Experience Carole's experience includes examining accounting records for governmental, not -for -profit and commercial entities to help ensure the reliability and integrity of financial information; compliance with policies, plans, procedures, agreements, laws and regulations; reviews of internal controls; and evaluating management's achievement of goals and objectives. Carol's experience includes serving the following not -for -profit and governmental entities: mi All Souls' Episcopal Church Pt Alzheimer's Association SE Florida Chapter, Inc. is Bayfront Park Management Trust Boynton Beach Community Redevelopment District • City of Hialeah, Florida km City of Miami, Florida • East Little Havana Comm. Development Corporation Tal Kristi House, Inc. Latin Chamber of Commerce of USA • Miami Coalition for the Homeless, Inc. 1 Miami -Dade County Aviation Mgt. Contracts K Miami -Dade County General Segment Miami -Dade County Housing District l ti Miami -Dade County Seaport Department • Miami -Dade County Transit ▪ Miami -Dade Expressway Authority • Miami Sports and Exhibition Authority Ti School Board of Miami -Dade County, Florida Fg School District of Palm Beach County, Florida • State of Florida Department of Revenue A Crowe Horwath. © Copyright 2014 Crowe Horvath LLP www.crowehorwath.com External Auditing Services City of Miami 70 Professional and Business Affiliations Certified Public Accountant, Florida Certified Fraud Examiner, ACFE a` Member, Association of Certified Fraud Examiners Member, American and Florida Institutes of CPAs • Member, National Assoc. of Black Accountants Member, South Florida Government Finance Officers and City Clerks Association ri Chairperson, Finance Committee, Kiwanis Club Lauderdale Lakes / West Sunrise Continuing Professional Education L 48 credits in government accounting and auditing subjects in the past two years Education • Master of Accounting Florida International University • Bachelor of Accounting a Florida International University Crowe Horwath. Copyright 2014 Crowe Horwath LLP www.crowehorwath. com External Auditing Services City of Miami 71 Jenny Orantes, CFE —Subcontract Manager Professional Summary Jenny has over 15 years of public accounting, auditing and consulting experience, including serving governmental and non-profit entities. She has spent her entire public accounting career at SKJT&G, rising to the level of Manager. Experience She has substantial experience in analyzing and evaluating internal controls over all major financial processes of non-profit and government entities, auditing governmental entities in accordance with Government Auditing Standards, auditing federal and state grants in accordance with OMB Circular A- 133 and Rules of the Auditor General of the State of Florida, respectively, and performing compliance reviews. Jenny's experience includes serving the following governmental and non-profit clients: Bayfront Park Management Trust Big Five Club, Inc. Fai Boynton Beach Community Redevelopment Agency • Children's Services Council of Broward County ✓ City of Miami Community Redevelopment Agencies 7 City of Miami, Florida • Coconut Grove Business Improvement District la Concert Association of Florida, Inc. rd The Development Research Center, Inc. Florida Dept. of Environmental Protection • Kristi House, Inc. grl Latin Chamber of Commerce of USA, Inc. • Miami -Dade County General Segment ▪ Miami -Dade County Aviation Department a3, Miami Beach Housing Authority • Miami Beach Latin Chamber of Commerce I The Ophthalmology Research Foundation, Inc. '££=A School Board of Miami -Dade County, Florida RN School District of Palm Beach County, Florida ! Southwest Social Services, Inc. Professional and Business Affiliations 51 Certified Fraud Examiner, ACFE TA1 Member, Association of Certified Fraud Examiners Candidate for CPA Exam, currently passed two parts A Crowe Horvath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com External Auditing Services City of Miami 72 Continuing Professional Education !Ai 48 credits in government accounting and auditing subjects in the past two years Education Bachelor of Accounting ri Florida International University Crowe Horvath. www.crowehorwath.com ©Copyright 2014 Crowe Horwath LLP External Auditing Services City of Miami 73 Appendix B: Letters of Reference We have provided four letters of reference on the following pages. Due to varying file types, this page will not be displayed on the Table of Contents. . Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehorwath.com C__Ir City of LAKELAND April 24, 2014 To Whom It May Concern: City Hall Finance Department 228 South Massachusetts Avenue Lakeland, Florida 33801-5012 Telephone: 863.834.6200 Facsimile: 863.834.8258 TDD 863.834.8333 Michael C. Brossart, CPA Deidra M. Joseph Finance Director Assistant Finance Director The City of Lakeland has utilized the services of the accounting firm Crowe Horwath, LLP since 2007. The City has worked with members of the existing engagement team for 20 years prior to that. We have found the firm to be responsive to our needs and prompt at meeting deadlines. The firm has offered a breadth of knowledge beyond the scope of the purely financial and compliance audit services that have been very beneficial to the City. This includes state of Florida sales tax audits, compliance audits for the National Energy Regulatory Commission, agreed -upon procedures reports to support bond issue disclosures, arbitrage calculation service and training opportunities for city staff. 1 feel very comfortable in recommending Crowe Horwath, LLP to other governmental agencies that are seeking audit or other professional services that can be provided by this firm. Sincerely, Micftiael C. Brossart, CPA Finance Director BP:*5YARD COUNTY Office of the County Auditor 115 S. Andrews Avenue, Room 520 ° Fort Lauderdale, Florida 33301 •954-357-7590 • FAX 954-357-7592 April 28, 2014 Mr. Todd Hannon, City Clerk City of Miami Office of the City Clerk 3500 Pan American Drive Miami, Florida 33133 SUBJECT: Crowe Horwath, LLC Dear Mr. Hannon: In connection with your solicitations of independent audit services for the City of Miami, please be advised that Crowe Horwath, LLC (Crowe) has been engaged as the Independent Auditors for Broward County for fiscal years 2010 through 2014. Crowe completed the annual audit for 2013 in a very professional manner and was very responsive to our deadlines. We are very satisfied with their services. Sincerely, Evan A. Lukic County Auditor EAL/besa Broward County Board of County Commissioners Sue Gunzburger • Dale V.C. Hotness • Kristin Jacobs • Martin David Kiar - Chip LaMarca • Stacy Ritter • Tim Ryan • Barbara Shariet • Lois Wexler www.broward.org BOYNTON BEACH April 28, 2014 To Whom It May Concern: 710 N Federal Highway Boynton Beach, FL 33435 Ph: 561-737-3256 Fax: 561-737-3258 www.boyntonbeachcra.com This letter is intended to serve as a reference and recommendation to governmental entities considering Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP ("SKJTG") to be their external auditors. SKJTG has been our auditors since 2008, and are currently contracted through 2018. They have an in-depth understanding of governmental accounting and auditing issues. The quality of their work is excellent and very timely. More significantly, they have provided exceptional client service, giving us the time and attention that we require in order to complete the audit in an efficient manner. I am very pleased to endorse SKJTG's professional qualifications, and would recommend them to other governmental entities. If you have any questions about the quality of SKJTG's services, please feel to contact me. Sincerely, Susan Harris Finance Director April 28, 2014 To Whom It May Concern, This letter is intended to serve as a reference and recommendation to governmental entities considering Sanson, Kline, Jacomino & Company, LLP ("SKJ") for external auditing services. Since the inception of our agreement, SKJ has demonstrated an in-depth understanding of governmental accounting and auditing issues. The quality of their work is excellent, and very timely. More significantly, they have provided exceptional client service, giving us the time and attention that we require in order to complete the audit in an efficient manner. I am very pleased to endorse SKJ's professional qualifications, and would recommend them to other governmental entities. If you have questions about the quality of SKJ's services, please feel free to contact me. Manny Gonzalez Executive Director 3390 Mary Street, Suite 730 Coconut Grove, Ft. 33133 305.461.5506 a 305.461.5573 bidoffice@grovebid.com an www.coconutgrove.com External Auditing Services City of Miami 74 Appendix C: State of Florida License We have provided our state of Florida license on the following pages. Due to varying file types, this page will not be displayed on the Table of Contents. A Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www.crowehoryvath.com F STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY 240 NW 76TH DRIVE, SUITE A GAINESVILLE FL 32607 CROWE HORWATH LLP PO BOX 3697 ONE MID AMERICA PLAZA OAK BROOK IL 60522-3697 Congratulations! With this license you become one of the nearly one million Floridians licensed by the Department of Business and Professional Regulation. Our professionals and businesses range from architects to yacht brokers, from boxers to barbeque restaurants, and they keep Florida's economy strong. Every day we work to improve the way we do business in order to serve you better. For information about our services, please log onto www.myfloridalicense.com. There you can find more information about our divisions and the regulations that impact you, subscribe to department newsletters and learn more about the Departments initiatives. Our mission at the Department is: License Efficiently, Regulate Fairly. We constantly strive to serve you better so that you can serve your customers. Thank you for doing business in Florida, and congratulations on your new license! AD65785 (850) 487-1395 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION SUE i 11/14/2013 ACCOUNTANCY ARTNERSHIP "`_ CROWE HORWATH IS LICENSED under the provisions of Ch 473 FS Expiration date . DEC 31, 2015 L1311140000521 The Department of State is leading the commemoration of Florida's 500th anniversary in 2013. ak For more information, please go to www.VivaFlorida.org. tllVli it0i!IDA'>:: DETACH HERE RICK SCOTT, GOVERNOR STATE OF FLORIDA KEN LAWSON, SECRETARY DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY AD65785 The ACCOUNTANCY PARTNERSHIP Named below IS LICENSED Under the provisions of Chapter 473 FS, Expiration date: DEC 31, 2015 CROWE HORWATH LLP 401 E LAS OLAS BLVD SUITE 1100 FORT LAUDERDALE;_, FL 33301-4230 VIVA ELORIDA9',O. ISSUED: 11/14/2013 SEQ # L1311140000821 DISPLAYAS REQUIRED BY LAW STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY The ACCOUNTANCY CORPORATION Named below IS LICENSED Under the provisions of Chapter 473 FS. Expiration date: DEC 31, 2015 SANSON, KLINE, JACOMINO, TANDOC & GAMARRA, LLP SKJT&G 5805 BLUE LAGOON. DRIVE, 'SUITE 220 ' MIAMI FL33126 RICK SCOTT GOVERNOR ISSUED: • . ' 10/08/2013 SEQ # L1310080001224 DISPLAYAS REQUIRED BY LAW tiif1.01111111 KEN LAWSON SECRETARY • _ 1114:001 MIN11147WrobbiJW 71'04 TATEOFFLORDA......•. 1kAiiii4E6'P4iiibii1W61!146 PROFESSIONAL NRAgILATIoN ARa"ovlAccou4T4NcY, SEQ# L12 0 92 5 00706 LICENSE" NBE4,7 8 00.16 • pupx,x.e CCQtTf4. **1 t,,„." EJSTSD ITrider i 4t e r•t- Expiration date DEC\31, , • . !z, )). •,1; ?;5 8 50 0 '8 .. 8 7:.....TE i (\: Ei• :•z'''. rTANDba -., -c-gt:E) 7..A..,..'..,.. mi 1 .-. • „.„„..... •••,:::::,..,-, ......„1, .--,s,,,,•;,` .FL 3 3 1:.4..3';'14-,'' ir . .. , N. •;;.F,-; y1.••••...., ,........:.:.:44 .. .......... '..... 1..f.f.... .1...,.....i (4,4...,....„ k ••••..V.! 1 • • .L. I.... ...,..1, "...„, ... ' *. :inAftn2"!:: 4;;;'.:!,' ...':fe:. '';';k?...'"i:t.'''' '. 'Y . ,.'t:',:. i1.....! -;)• ',:V. 'i'..." . '.,.,. ':. '.' '.; ra 4 ....' Ttf" d, . 11.11OR .61;‘40' IDISPAY AS RE:QUIRED'Elf.LAW' KEN LAWSON SECRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY The CERTIFIED PUBLIC ACCOUNTANT Named below IS LICENSED Under the provisions of Chapter 473 FS. Expiration date: DEC 31, 2015 STEWART-HERON, CAROLALTHEA 5805 BLUE LAGOON DR SANSONKLINE J ./6)COMINO'&CO - *220 MIAMI FL 33126 „Al VIVA ROM/I}. RICK SCOTT GOVERNOR . . . •.` • • ISSUED: 10/24/2013 Sal # L1310240001217 KEN LAWSON SECRETARY DISPLAY AS REQUIRED BY LAW External Auditing Services City of Miami 75 Appendix D: Peer Review We have provided the two most recent Peer Review Reports for Crowe Horwath LLP and Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP on the following pages. Due to varying file types, this page will not be displayed on the Table of Contents. Crowe Horwath r fitH www.crowehorwath.com © Copyright 2014 Crowe Horwath LLP t m% Cherry Bekaerr CPAs & Advisors System Review Report To the Partners of Crowe Horwath LLP and the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Crowe Horwath LLP (the firm) applicable to non -SEC issuers in effect for the year ended March 31, 2013. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included engagements performed under the Government Auditing Standards, audits of employee benefit plans, audits performed under FDICIA, audits of carrying broker -dealers, and examinations of service organizations [Service Organizations Control (SOC) 1 engagements]. In our opinion, the system of quality control for the accounting and auditing practice of Crowe Horwath LLP applicable to non -SEC issuers in effect for the year ended March 31, 2013, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Crowe Horwath LLP has received a peer review rating of pass. Cherry Bekaert LLP September 24, 2013 AICR Peer Review Programs Administered by the National Peer Review Committee December 12, 2013 Charles M Allen, CPA Crowe Horwath LLP One Mid America Plaza, Suite 700 Oakbrook Terrace, IL 60181 Dear Mr. Allen: American Institute aF CPAs 220 Leigh Farm Road Durham, NC 27707.8110 It is my pleasure to notify you that on December 12, 2013 the National Peer Review Committee accepted the report on the most recent system peer review of your firm. The due date for your next review is September 30, 2016. This is the date by which all review documents should be completed and submitted to the administering entity. As you know, the report had a peer review rating of pass. The Committee asked me to convey its congratulations to the firm. Sincerely, Betty Jo Charles Chair, National Peer Review Committee nprc@aicpa.org 919 402-4502 cc: Scot D Ivey, Samuel E Johnson Firm Number: 10014904 Review Number: 350003 T:919,402,4502 I F:919.402.4876 j aicpa,org WWW.MOSSADAMS.COM LV1V w7tJ 11Jti LX1,J Vt-P'. i ertified PublicAccbunta�ts��usin. sCoasuttants' System Review Report To the Partners of Crowe Horwath LLP and the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Crowe Horwath LLP (the firm) applicable to non SEC issuers in effect for the year ended June 30, 2010. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included engagements performed under the Government Auditing Standards, audits of employee benefit plans, and audits performed under FDICIA. In our opinion, the system of quality control for the accounting and auditing practice of Crowe Horwath LLP applicable to non SEC issuers in effect for the year ended June 30, 2010, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deJiciency(fes) or fail. Crowe Horwath LLP has received a peer review rating of pass. 477110-44— p November 5, 2010 Pr iii MEMBER GLOBAL ALLIANCE OF INDEPENDENT FIRMS AICPA Peer Review Program Administered by the National Peer Review Committee December 17, 2010 Charles Allen, CPA Crowe Horwath LLP One Mid America P1 Ste 700 Oakbrook Terrace, IL 60181 Dear Mr. Allen: It is my pleasure to notify you that on December 9, 2010, the National Peer Review Committee accepted the report on the most recent system peer review of your firm. The due date for your next review is December 31, 2013. This is the date by which all review documents should be completed and submitted to the administering entity. As you know, the report had a peer review rating of pass. The Committee asked me to convey its congratulations to the firm. Sincerely, 6teu-ezd} Betty Jo Charles Chair —National PRC cc: Jeff Brown, CPA Firm Number: 10014904 Review Number: 311547 American Institute of Certified Public Accountants 220 Leigh Farm Road, Durham, NC 27707 • (919) 402-4500 • fax (919) 402-4505 • www.aicpa.org ISO Certified America -Counts on CPAs" INFANTE & COMPANY CERTIFIED PUBLIC ACCOUNTANTS • BUSINESS CONSULTANTS Members of: American Institute of CPAs • Center for Audit Quality • Employee Benefit Plan Audit Quality Center • Governmental Audit Quality Center • Private Companies Practice Section • Tax Division Florida Institute of CPAs System Review Report December 6, 2013 Harrison Executive Centre 1930 Harrison Street Suite 308 Hollywood, Florida 33020 Telephone (954) 922-8863 Fax (954) 922-B884 www.infantecocpa.com To the Partners of Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP and the Peer Review Committee of the Florida Institute of Certified Public Accountants We have reviewed the system of quality control for the accounting and auditing practice of Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP (the firm) in effect for the year ended May 31, 2013. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. As a part of our peer review, we consideredreviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included an engagement performed under the Government Auditing Standards and an audit of an employee benefit plan. We noted the following deficiencies during our review: 1. Deficiency - The firm's quality control policies and procedures requires that the person responsible for assigning personnel to engagements consider specialized industry experience or expertise when assigning all levels of personnel to engagements. We noted that the firm relies primarily on the engagement partner's background and knowledge and does not give adequate consideration to the complexity or other requirements of the engagement when assigning other engagement personnel. We noted an instance in which certain personnel did not have sufficient experience, expertise, or training in the areas assigned to them. In addition, the firm's System of Quality Control requires that any ERISA engagement performed by the firm requires EQCR by an experienced reviewer prior to the issuance of the financial statements. The firm had an audit of an employee benefit plan subject to the Employee Retirement Income Security Act of 1974 (ERISA), which met the above criteria. As a result of the lack of industry experience and lack of EQCR, the firm did not properly report on the financial statement in this specialized industry. Recommendation -The firm should revise its quality control policies and procedures to require that personnel assigned to engagements have sufficient experience or expertise to perform the work assigned to them. When it is necessary to assign a person who does not have sufficient experience or expertise to perform a key role on an engagement, the engagement partner should be required to document how the engagement team will compensate for this lack of experience or expertise. 2. Deficiency - The firm's quality control policies and procedures require that audit engagements in specialized industries be properly planned and executed in accordance with generally accepted auditing standards. We noted one limited scope employee benefit plan audit, where due to lack of familiarity of the engagement team with the specialized nature of the engagement and financial statement presentation and disclosure was incomplete. The firm issued a qualified opinion auditors' report when they should have issued a disclaimer opinion auditors' report. In addition, the plan did not disclose the amount and disposition of forfeited non -vested accounts to be used to reduce employer contributions, did not disclose fully benefit responsive contract investments, did not disclose party - in -interest transactions and the required fair value disclosures (levels 1 - 3) for investments, and therefore, a tabular format was not presented. The firm has advised that it will correct the auditors' report and re -issue the financial statements to its client and the related governing body. Recommendation -The firm should designate a partner to be responsible for all employee benefit plan audits. That partner should attend training on performing such audits and be responsible for directing all benefit plan audits. In our opinion, except for the deficiencies described above, the system of quality control for the accounting and auditing practice of Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP in effect for the year ended May 31, 2013, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP has received a peer review rating of pass with deficiencies, Infante & Company INFANTE & COMPANY CERTI9IEC PUBLIC ACCOUNTANTS • BUSINESS CONSULTANTS Members of: American Institute of CPAs • Center for Audit Duality • Tax Division • Personal Financial Planning Section Florida Institute of CPAs National Associated Certified Public Accounting Firms System Review Report August 17, 2010 Harrison Executive Centre - Suite 308 1830 Harrison Street Hollywood, Florida 33020 Telephone (954) 922.8888 Fax (954) 922.8884 www.infantecocpa. cam Icopas@aol.com To The Partners Sanson, Kline, Jacomino & Company, LLP and the Peer Review Committee of the Florida Institute of Certified Public Accountants We have reviewed the system of quality control for the accounting and auditing practice of Sanson, Kline, Jacomino & Company, LLP (the firm) in effect for the year ended May 31, 2010. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at www.aicpa.org/prsummary. As required by the standards, engagements selected for review included an engagement performed under the Government Auditing Standards. In our opinion, the system of quality control for the accounting and auditing practice of Sanson, Kline, Jacomino & Company, LLP in effect for the year ended May 3.1, 2010, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Sanson, Kline, Jacomino & Company, LLP has received a peer review rating of pass. Infante & Company External Auditing Services City of Miami 76 Appendix E: Required Forms We have provided the Certification Statement required by the City on the following pages. A Crowe Horwath. © Copyright 2014 Crowe Horwath LLP www. c rowe h o rwa t h. c o m Certification Statement Please quote on this form, if applicable, net prices for the item(s) listed. Return signed original and retain a copy for your files. Prices should include all costs, including transportation to destination. The City reserves the right to accept or reject all or any part of this submission. Prices should be firm for a minimum of 180 days following the time set for closing of the submissions. In the event of errors in extension of totals, the unit prices shall govern in determining the quoted prices. We (I) certify that we have read your solicitation, completed the necessary documents, and propose to furnish and deliver, F.O.B. DESTINATION, the items or services specified herein. The undersigned hereby certifies that neither the contractual party nor any of its principal owners or personnel have been convicted of any of the violations, or debarred or suspended as set in section 18- 107 or Ordinance No. 12271. All exceptions to this submission have been documented in the section below (refer to paragraph and section). EXCEPTIONS: Pr' With regards to Section 2.9 of the Request for Proposals Crowe's Commercial General Liability provider will be able to provide a 30 day cancellation/material change notice to the City. However, in regards to our other policies the provider will endeavor to provide the 30 day notice. P. With regards to the Professional Service Agreement, Section 11, Indemnification, Crowe would request a change to the wording "....arising out of, resulting from, or in connection with..." to "to the extent caused by contractor". Crowe would also request to include in the contract the Dispute Resolution procedures currently in place with the City's current auditor including the Mediation and Arbitration provisions. We (I) certify that any and all information contained in this submission is true; and we (I) further certify that this submission is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a submission for the same materials, supplies, equipment, or service, and is in all respects fair and without collusion or fraud. We (I) agree to abide by all terms and conditions of this solicitation and certify that I am authorized to sign this submission for the submitter. Please print the following and sign your name: SUPPLIER NAME: Crowe Horwath LLP ADDRESS: 401 East • Las Olas Boulevard, Suite 1100, Fort Lauderdale, Florida 33301-4230 PHONE: 954-202-8600 FAX: 954-202-8639 EMAIL: iohn.webercrowehorwath.com BEEPER: N/A SIGNED BY: John C. Weber, "%IP- - TITLE: Partner DATE: May 13, 2014 FAILURE TO COMPLETE, SIGN, AND RETURN THIS FORM SHALL DISQUALIFY THIS BID. Certifications Legal Name of Firm: Crowe Horwath LLP Entity Type: Partnership, Sole Proprietorship, Corporation, etc. Partnership Year Established: 1942 Office Location: City of Miami, Miami -Dade County, or Other 401 East Las Olas Boulevard, Suite 1100, Broward County Florida Occupational License/ Business Tax Receipt Number: Broward County Local Business Tax Receipt Number: 317-1229 Req. AD65785 Occupational License/ Business Tax Receipt Issuing Agency: Broward County Occupational License/ Business Tax Receipt Expiration Date: December 31, 2015 Will Subcontractor(s) be used? (Yes or No) Yes. Please list and acknowledge all addendum/addenda received. List the addendum/addenda number and date of receipt (i.e. Addendum No. 1, 7/1/07). If no addendum/addenda was/were issued, please insert N/A. Crowe Horwath acknowledges receipt of the following addendum: Addendum No. 1, 4/30/14 Line:1 Description: Provision of external auditing services per the Specifications/Scope of Work section herein. Category: 94620-10 Unit of Measure: Dollar Unit Price: $ 2,358,000 Number of Units: 1 Total: $ 2,358,000