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HomeMy WebLinkAboutProposal - MarcumORIGINAL PROPOSAL Proposal for External Auditing Services for the City of Miami, Florida RFP No. 439312 May 13, 2014 MARCUM ACCOUNTANTS A. ADVISORS Michael D. Futterman, CPA, Partner One Southeast Third Avenue 116th Floor 1 Miami, FL 33131 Phone 305.995.9610 I Fax 305.995.9601 I Federal ID: 11-1986323 michael.futterman@marcumllp.com www.marcumllp.com City of Miami Table of Contents 1. Certification Statements 3 2. Executive Summary 7 3. Proposer's Qualifications and Experience 10 4. Technical Qualifications 44 A. Ability and Experience to Perform Required Services 45 B. Audit Approach 55 5. Fees for Services 62 Appendix A: Peer Review Reports Appendix B: Proof of Insurance Appendix C: Firm and Individual Licenses and Certifications Appendix D: Legal Matters Appendix E: Potential Exception to the Indemnification Language; Section 1.42 of the Request for Proposal MARCUM ACCOUNTANTS • ADVISORS Proposal for External Auditing Services www.marcumllp.com ■ Page 2. 0514025E 1. Certification Statements Page 3 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 (J) 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. AU exceptions to this submission have been documented in the section below (refer to paragraph and section). EXCEPTIONS: See Appendix E of this Proposal 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 subinitter. Please print the following and sign your name: SUPPLIER NAME Marcum LLP ADDRESS. One Southeast Third Avenue, Sixteenth Floor PHONE. 305 995 9600 FAX. 305 995 9601 EML,michael.futterman@marcumllp.com mem:Cell: 305 772 7025 SIGNED BY. Michael Futterman TITLE: Partner DATE, May 12, 2014 FAILURE TO COMPLETE. SIGN. AND RETURN THIS FORM SHALL DJSOUALI.FY THXS BID. Page 2 of 47 Certifications Legal Name ofFinn: Marcum LLP Entity Type: Partnership, Sole Proprietorship, Corporation, etc. Partnership Year Established: 1951 Office Location: City of Miami, Miami -Dade County, or Other City of Miami Office Occupational License/Business Tax Receipt Number: FEf #3458270 Occupational License/Business Tax Receipt Issuing Agency: City of Miami Occupational License/Business Tax Receipt Expiration Date: September 30, 2014 Will Subcontractor(s) be used? (Yes or No) Yes Please list and acknowledge all addend:Tim/addenda received. List the addendum/addenda number and date of receipt (i.e. Addendum No. 1, 7/1/07). if no addendum/addendawas/were issued, please insert N/A. Addendum No. 1 April 30, 2014 Pare 3 of 47 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: $2,374,000 Number of Units: 1 See Section 5 of the Proposal Total: $ 2,374,000 Page 4 of 47 2. Executive Summary Page 7 MARCUM ACCOUNTANTS ♦ ADVISORS May 13, 2014 Mr. Todd Hannon, City Clerk City of Miami Office of the City Clerk 3500 Pan American Drive Miami, FL 33133 Marcum LLP (Marcum) is pleased to have the opportunity to submit our response to the request for proposal and present our experience and qualifications to provide external auditing services to the City of Miami, Florida (The City). Effective June 1, 2009, the certified public accounting firm of Rachlin LLP merged with the certified public accounting firm of Marcum & Kliegman LLP and became Marcum LLP. The combined Finn is ranked 15th nationally among certified public accounting firms and has 23 offices throughout the U.S. and internationally, making it one of the largest independent public accounting and advisory services firms in the nation. Over our 60 year history, the Firm has provided professional services to the public sector, including local governments, counties, special districts and other governmental entities. In the past year alone, the Florida region of Marcum has performed more than 40 audits of governmental entities. As outlined in our proposal, we will conduct an audit of the financial statements of the City, for the fiscal years ending September 30, 2014 to 2018. We commit to perform the work within the time period defined in the request for proposal. THE MARCUM DIFFERENCE EXPERIENCE IN GOVERNMENT: Marcum's public sector services (formerly Rachlin) is one of its primary sectors and focuses on local governments like the City, not -for -profit organizations and other governmental entities. We serve more than 200 of such organizations nationally. In Florida, the public sector practice represents our largest industry focus where we serve over 100 clients. We are committed to this industry sector. LOCAL FIRM SERVICE PHILOSOPHY/NATIONAL FIRM RESOURCES: Being a National firm with 23 offices and approximately 1,300 professionals, we serve as a strategic alternative to the larger firms. The partners and managers with whom you will develop relationships, drive all major decisions; possessing both the appropriate resources and decision making authority. Our local firm approach provides hands-on service and timely communication, resulting in the City receiving the best of both worlds. TRANSITION EXPERIENCE: Our team offers a great deal of experience with transitioning to new clients and our process streamlines the transition while minimizing the disruption to you during the auditor change. As a result of having a new team with a new approach, we offer you a different look at your systems with no pre -disposition to those systems. MARCUM GROUP I MEMBER Marcum LLP • One Southeast Third Avenue • 16th Floor .■ Miami, Florida 33131 • Phone 305.995.9600 • Fax 305.995.9601 ■ www.marcumllp.com COMMITMENT TO SERVE: For this proposed engagement Marcum has assembled an audit team whose skills and experience match the requirements of the City. The proposed client service and audit engagement partner, Michael D. Futterman has extensive experience in performing audits of governmental entities. Michael is also the partner -in -charge of governmental services for the Florida region of Marcum. All decisions that affect the planning, execution and completion of the proposed audit will be made by him. His experience in conducting audits for other governmental entities brings a wealth of knowledge and gives us the opportunity to be more efficient and effective to the City. As delineated in our proposal, Mr. Futterman will be supported by a qualified team of professionals. In addition, Marcum has formed an alliance with the firm of Alberni Caballero & Company, LLP as a subcontractor to assist us in performing this engagement. Alberni Caballero & Company, LLP has extensive governmental audit experience and is a registered SBE firm in Miami -Dade County as well as the state of Florida. Nestor Caballero, CPA, will serve as co -engagement partner. The issues of audit quality and technical proficiency are important matters for consideration. Equally important is a firm's commitment to continuing communications and providing a high caliber of professional service in a timely manner. Accounting firms, like people, have distinctive personalities. Perhaps the quality that best describes Marcum is our ability to go beyond the routine, to provide an extra dimension in quality, effort and service to our clients. Marcum members are always accessible and are sensitive to your needs. We will be available to answer questions, discuss audit issues, and provide solutions to such issues throughout the year as they arise. We believe that this commitment and performance, as well as our commitment to ongoing communication with you, sets Marcum apart from other firms. Although our fees may not be the lowest, our service, our technical competency, and our value to you will be unparalleled. Our Florida offices are located in downtown Miami, Fort Lauderdale and West Pahn Beach. We currently have 185 employees in our three Florida offices, however the resources of all of our offices are available to us. Marcum LLP is a registered corporation in the state of Florida, Marcum meets the minimum qualification requirements as delivered in Section 2.6 of the request for proposal. Our technical competencies will be essential over the next several years with the implementation of new significant Governmental Accounting Standards Board pronouncements. This assistance will be provided at no additional cost to the City. This is a firm and irrevocable offer for a period of 180 days. Marcum is registered with the PCAOB and the SEC has not suspended any of the Firm's practices. We welcome the opportunity to answer any questions and to provide further information regarding our services and experience. Thank you for your consideration. Sincerely, Marcum LLP Michael D. Futterman, CPA, Partner Authorized to represent and bind the Firm Michael.Futtennan@marcumllp.com (305) 995-9610 MARCUM ACCOUNTANTS ♦ ADVISORS 3. Proposer's Qualifications and Experience Page 10 MARCUM INTRODUCTION Marcum LLP is one of the largest independent public accounting and advisory services firms in the nation. Ranked among the top 15, Marcum LLP offers the resources of 1,300 professionals, including over 160 partners, in more than 23 offices throughout the U.S., Grand Cayman and China. Headquartered in New York City, the Firm's presence runs deep with full -service offices strategically located in major business markets. Marcum is a member of the Marcum Group, an organization providing a comprehensive range of professional services spanning accounting and advisory, technology solutions, wealth management, and executive and professional recruiting. The Marcum Group companies include Marcum LLP; Marcum Technology LLc; Marcum Search tic; Marcum Financial Services LLc; Marcum Bernstein & Pinchuk LLP; and MarcumBuchanan Associates LLc. For a listing of all of Marcum's partners, please visit our website at www.marcumllp.com. Established in 1951, Marcum is a leader with an outstanding reputation at the national and regional levels. Marcum is ranked as one of the largest firms in the New York metropolitan area (Crain's New York Business), the greater Philadelphia region (Philadelphia Business Journal), the New. England region (Boston Business Journal) and the Southeast (South Florida Business Journal). Marcum offers an extensive range of professional services and a high degree of specialization. In addition to traditional accounting, assurance and tax, including domestic and international tax planning and preparation, the Firm's professional services include mergers and acquisition planning, family office services, forensic accounting, business valuation and litigation support. The Firm has developed several niche practice areas serving private equity partnerships; hedge funds; SEC registrants; real estate; government, public and not -for -profit sectors; manufacturing; construction; healthcare; and bankruptcies and receiverships; as well as a China specialty practice. Marcum professionals combine practical knowledge with years of experience to provide a level of understanding and service that is unique among professional service firms. The Firm takes a team approach to every engagement, ensuring the highest degree of technical knowledge, experience and understanding of current issues and regulatory matters. In addition, as a founding member of The Leading Edge Alliance, a worldwide group of large, independent accounting practices, the Firm's professionals have added access to a wide range of industry and service specialization. OUR SPECTRUM OF SERVICES INCLUDE: Assurance Services Assurance services primarily involve the audit of financial statements and the issuance of an opinion on the fairness of the presentation of financial position and results of operations of an entity. Our philosophy and practice is to blend technical, practical and business approaches when conducting each engagement. Assurance Governmental services also includes single audits, compliance audits, forensic audits, IT audits, internal audits, GASB implementation, financial statement and CAFR preparation, performance or operational reviews and a wide range of consulting services for local governments. Advisory Services The Firm's Advisory services encompass the analysis of business problems, the evaluation of the scope of specific situations, as well as the development of solutions and alternative procedures. The purpose of this comprehensive endeavor is to assist clients in solving their management problems. The scope of an advisory engagement is determined in large measure by the client, and depends partially on the extent of involvement of the client's own personnel. The Firm aims to provide clients with "know-how" by using personnel who have the knowledge and experience to serve clients in a wide range of functional areas such as accounting systems, computer systems, financial controls and organizational structure as well as business valuations and forensic audits. MARCUM Proposal for External Auditing Services www.marcumllp.com ■ Page 11 0514025F ACCOUNTANTS A ADVISORS Tax Services The term tax services is sometimes understood to mean tax return planning and preparation for companies and individuals; however, all organizations, including government entities, must understand and comply with various provisions of the Internal Revenue Code. Our service team has the knowledge and experience to meet our clients' tax needs. Technology Assurance Services (TAS) Marcum's Technology Assurance Services (TAS) leverages core strengths in all areas of managing technology risks into a strategic advantage for virtually every sector of business and industry. The results are stronger internal controls; smarter business practices; and improved efficiencies, productivity and revenue throughout your organization. Our TAS team can asses your information risk management and operational effectiveness. We can then provide you with privacy, compliance and technology consulting solutions. Experienced professionals hold CISA, CISSP CISM, CRISC, or CPA accreditations along with many years of experience in bringing unique solutions to your business and IT needs. This unique combination allows us to start with your business challenges and then tailor IT solutions to match your needs. At Marcum LLP, our TAS team helps clients achieve optimum results in their ability to manage IT risk, mitigate those risks, and improve performance with cost-effective solutions. Our goal is to deliver practical solutions to the problem of "digital insecurity", which means helping to identify the most cost effective ways to address specific concerns regarding it -related compliance and control issues relevant to your environment and needs. In addition, the TAS team can design and implement ERP solutions that will integrate your operations more efficiently. RELATED SERVICES FOR GOVERNMENTAL ENTITIES GFOA Certificate of Achievement Program We have assisted all of our clients who participate in the GFOA Certificate of Achievement for Excellence in Financial Reporting Program. This program is recognized as the highest award in governmental financial reporting. The Certificate of Achievement has been awarded on all of the financial statements for participating clients, including first time submissions. Several members of the Marcum team are special reviewers for the GFOA Certificate of Achievement Program. Michael D. Futterman has been a special reviewer for the Certificate Program since 1992. EXPERIENCE IN FINANCIAL AND SINGLE AUDITS The Firm has more than 60 years of experience in performing audits of governmental entities, including preparing governmental financial statements and performing Federal and Florida Single Audits. Annually we perform more than 50 Single Audit engagements. MARCUM Proposal for External Auditing Services www.marcumllp.com ■ Page 12 0514025F ACCOUNTANTS A ADVISORS ALBERNI CABALLERO & COMPANY, LLP (SUB•CONTRACTOR) Alberni Caballero & Company, LLP (AC&C) is a Certified Public Accounting firm of professionals that work together on a continual basis with the main focus of serving the public sector. AC&C is a local firm and a professional limited liability partnership with offices in Coral Gables and Miramar, which provides comprehensive financial and compliance auditing, attestation and accounting, and other management consulting services. AC&C's partners have served the South Florida area for over 30 years and the firm has been in existence since 1972. Industry areas of specialization include: • Municipalities (Cities, Villages and Towns) • Other Governmental Entities • Public Housing Authorities • Non Profit Organizations • Charter Schools SPECTRUM OF SERVICES Assurance Services Primarily involve audit of financial statements as well as Federal and Florida Single Audits and various compliance audits. In addition to these services AC&C provide consulting services to local governments such as IT Reviews, GASB implementation, and financial statement and Comprehensive Annual Financial Report (CAFR) preparation services. Tax and Advisory Services Tax return preparation for not for profit organizations, private companies and individuals. AC&C also provide assistance to local governments and not for profit organizations with compliance and understanding of IRS regulations. Information Technology Through their partnership with other professionals AC&C also offers Information Technology (IT) services such as IT compliance assessments. AC&C is a member of the AICPA Governmental Audit Quality Center, which holds firms to a higher standard of quality. Total Governmental Professional Sector Staff Staff INDEPENDENCE AC&C affirms that they meet the independence requirements of professional standards. AC&C are also independent of the District as defined by auditing standards generally accepted in the United States of America. AC&C's partners and employees are independent of the District and have no conflict of interest. LICENSE TO PRACTICE IN THE STATE OF FLORIDA AC&C is properly registered/licensed State of Florida professional limited liability partnership. PEER REVIEW REPORT AC&C's most recent peer review reports are presented in Appendix A. MARCUM Proposal for External Auditing Services www.marcumllp.com • Page 13 0514025F ACCOUNTANTS A ADVISORS INDEPENDENCE Marcum's policy is that all professional personnel be familiar with and adhere to the independence, integrity, and objectivity rules, regulations, interpretations, and rulings of the American Institute of Certified Public Accountants, the state Board of Accountancy and state CPA societies, relevant statutes, and applicable regulatory agencies. In addition, all professionals — from partner to staff auditor — are required to sign affidavits annually attesting to their independence. The Firm is independent of the Village as defined by Generally Accepted Auditing Standards and the U.S. General Accounting Office's "Government Auditing Standards". Marcum's quality control document contains detailed policies related to maintaining independence. These policies are the most stringent policies adopted by the AICPA and the various state boards of accountancy. Engagement team members are required to consider any possible situations where independence may be impaired during the acceptance or continuance process and if any arise during the performance of an engagement. Marcum LLP and Alberni, Caballero & Company, LLP are not aware of any conflicts of interest with the City of Miami. The City has never awarded any contracts to Marcum LLP. Aberni, Caballero & Company, LLP performed the audit of the Virginia Key Beach Trust, which is a component unit of the City of Miami, in 2007 and 2008. LICENSE TO PRACTICE IN FLORIDA We affirm that Marcum LLP is a licensed certified public accounting firm and is in good standing with all regulatory agencies. The Firm is a member of the American Institute of Certified Public Accountants (AICPA) and the Florida Institute of Certified Public Accountants (FICPA). All professional staff, upon successful completion of the CPA exam, become members of both organizations. The Firm and all assigned key professional staff are properly licensed and certified to practice in Florida. The Firm is registered annually with the Florida Department of Business and Professional Regulation — Board of Accountancy. BANKRUPTCIES There are no bankruptcies involving Marcum LLP or Alberni, Caballero & Company, LLP their partners, their managers or any key staff members. LEGAL MATTERS Legal matters are addressed in Appendix D. MARCUM Proposal for External Auditing Services www,marcumllp.com • Page 14 0514025F ACCOUNTANTS A ADVISORS LOCAL OFFICES The Florida Division of Marcum has offices in Miami, Fort Lauderdale and West Palm Beach with 19 partners and a staff of 184, including support staff. The size of our governmental staff is as follows: Marcum_ .___.__ . _ _a'Dtal -Governmental -- Staff The audit partner, Michael Futterman, the audit director, Bella Sherman and the audit manager, Enrique Llerena, and two supervisors and senior staff auditors from the Firm's Miami office will be assigned to this engagement on a full-time basis. The IT senior manager will be assigned to this engagement on a part-time basis to address IT considerations and evaluations. QUALITY CONTROL SYSTEM The quality of the Firm's professional practice is of utmost importance to the Firm, to clients and to the users of our reports. We provide services that conform to professional standards and consider the integrity of individuals in determining our professional relationships. The Firm participates in an external quality review program requiring an on -site independent examination of our Accounting and Auditing practice. The Firm has consistently received a "clean" opinion on the quality of the Firm's audit practice. This is the highest level of achievement and recognition in the peer review program. The latest peer review reports for Marcum LLP and Alberni, Caballero & Company, LLP are included in Appendix A. The Firm's governmental engagements were included in its latest review. DISCIPLINARY ACTION There are no actions as a result of any federal or state desk reviews or field reviews to the Firm's audits or its auditors of governmental entities during the past three (3) years. There has been no disciplinary action taken nor pending against the Firm or any of the professional staff during the past three (3) years with the State Board of Accountancy or the Auditor General or any other regulatory bodies. ADDITIONAL SERVICES Marcum posses the ability and experience to provide additional services which may be requested by the City, In the past, we have been engaged by various organizations, some being our audit clients, to provide services that range from Internal Control Assessments and Operations Reviews to Forensic Audits, IT Audits, Performance Audits, and Compliance Audits. MARCUM Proposal for External Auditing Services www,marcumllp.com ■ Page 15 0514025F ACCOUNTANTS ♦ ADVISORS TEAM ARRANGEMENT Marcum LLP (Prime Contractor) One Southeast Third Avenue, Sixteenth Floor Miami, FL 33131 Michael D. Futterman, CPA (Primary Contact) (305) 995-9610 Marcum LLP will be involved in all phases of the audit from the strategic planning and execution of the audit plan to the evaluation of results and completion and delivery of the reports. Marcum will also review all of the work performed by the subcontractor on the engagement. Alberni, Caballero & Company LLP (Subcontractor) 4649 Ponce de Leon Blvd., Suite 404 Coral Gables, FL 33146 (305) 662-7272 The subcontractor will assist Marcum with the execution of the audit plan assisting in areas such as single audit, cash, investments, and capital assets. MARCUM Proposal for External Auditing Services www.marcumlip.com ■ Page 16 0514025F ACCOUNTANTS A. ADVISORS City of Miami PARTNERS, SUPERVISORY, AND STAFF QUALIFICATIONS AND EXPERIENCE estor Caballero,`CF Co -Engagement Partner {AC&C) TEAM STRUCTURE Michael D. Futterman, CPA Client Service and Audit Partner (Marcum) eila Sherman, CPA Audit Director {Marcum) Enrique Lna, CPA Audit Manager (Marcumlere) enior & Staff Auditors (Marcum and AC&C) The experience of the personnel assigned to the engagement is critical to providing you with an effective and efficient audit. Their prior experience will be invaluable to the engagement. These are the professionals who will be on the job on a day-to-day basis; they need to be experienced in auditing governmental entities. These professionals are familiar with the complexities of governmental accounting, auditing and financial reporting, including all GASB pronouncements, the Federal and Florida Single Audit Acts, OMB Circular A-133, fund operations, State Laws and Rules of the Auditor General. The individuals listed will be assigned to the engagement. Michael D. Futterman, Beila Sherman, and Enrique Llerena are designated as the "key" members of the audit team. The key members assigned to this engagement are licensed to practice in the state of Florida. Each individual on the engagement has maintained the required CPE in governmental accounting and has attended an Ethics course for CPAs in Florida. The following pages provide a brief description of each individual's experience in governmental audits. Resumes for the audit team that will be assigned to this engagement team are on the following pages. Our commitment to active participation in local governmental organizations is included in the resumes. The resumes also include each individual's educational background, CPE over the past three years and other pertinent information. Since all of Marcum's governmental audit staff are qualified to perform financial and single audits of local governments and other government agencies, the Firm can assure the quality of staff over the engagement term. Engagement partners, managers, other supervisory staff and specialists may be changed if those personnel leave the Firm, are promoted or are assigned to another office. These personnel may also be changed for other reasons with the express prior written permission of the City. However, in either case, the City retains the right to approve or reject replacements, Our Firm policy is to maintain continuity of staff assignment on succeeding audits. MARCUM Proposal for External Auditing Services www.marcumllp.com ■ Page 17 0514025F ACCOUNTANTS a ADVISORS QUALIFICATIONS OF KEY STAFF Michael D. Futterman, CPA Client Service and Audit Partner (Marcum) Michael Futterman has more than 24 years experience in the governmental accounting and auditing sector and is highly qualified to serve as the audit engagement partner. Michael Futterman is also the partner in -charge of governmental services for the Florida region. Mr. Futterman will assume full responsibility for the engagement and will maintain continuous contact with management of the City. Mr. Futterman will be available to members of the engagement team and management as a high-level technical resource. He also will review thelinancial statements, related independent auditors' reports and other documents to ensure that industry standards have been adhered to and that the financial statements are in conformity with Firm and authoritative pronouncements regarding disclosure, format, terminology, etc. Nestor Caballero Co -Engagement Partner (AC&C) Nestor Caballero has more than 20 years experience in governmental accounting and auditing sector and is very qualified to serve as the co -engagement partner. As the co -engagement partner, Nestor will serve to assist Michael Futterman in the responsibilities of the audit engagement partner. Quality Control Review Partner Our quality control review department has extensive experience in the governmental accounting and auditing sector. The quality control review partner is responsible for reviewing the form and content of the audit workpapers and the auditor's report as well as the review of the financial statements in accordance with Firm and professional standards. This partner also serves as a high level technical resource for the engagement team as well as management. Bella Sherman, CPA Audit Director (Marcum) As the audit director, Beila Sherman will be re- sponsible for the planning and direction of the audit, developing audit programs, selecting and assigning personnel and reviewing all phases of the audit. She will maintain contact with City personnel, coordinate ongoing work and advise management on the status of the engagement. As the director, Ms. Sherman will report to the audit partner. She has approximately 15 years experience serving clients in the governmental sector. Antonio Namia, CPA/CITP IT Senior Manager Over the past 12 years Mr. Namia has worked with very large organizations, mid -sized organizations, non-profit organizations, and local governments providing IT, operational, audit and management consulting services. His range of experience provides him the insight to define, develop and implement scalable, business -valued, cost-efficient solutions that effectively leverage information technology. Enrique Llerena, CPA Audit Manager (Marcum) As the audit manager, Mr. Llerena will be responsible for the planning and direction of the audit, developing audit programs, selecting and assigning personnel and reviewing all phases of the audit. He will also maintain contact with the City personnel, coordinate ongoing work and advise management on the status of the engagement. As the manager, Mr. Llerena will also report to the audit partner. He has approximately 8 years of experience serving clients in the governmental sector. MARCUM Proposal for External Auditing Services www,marcumllp.com ■ Page 18 0514025F ACCOUNTANTS A ADVISORS Moises D. Ariza, CPA Supervisor (Marcum) As the audit supervisor, Mr. Ariza will be responsible for the supervision of the staff and will review all workpapers they prepare. He will be responsible for addressing complex audit areas and keeping the director; the manager and audit partner informed of the engagement progress. Mr. Ariza has approxi- mately 5 years of experience serving clients in the private and governmental sector. Yannick Ngendahayo Supervisor (AC&C) As an audit supervisor, Ms. Ngendahayo will be responsible for assisting with the supervision of the staff and review of all work papers they prepare. He will be responsible for assisting with the complex audit areas and keeping the audit manager and Mr. Ariza informed of the progress of the areas assigned. Mr. Ngendahayo has approximately 4 years of experience serving clients in the private and governmental sectors. Professional Development Every year, Marcum provides a minimum of 40 hours of continuing professional education (CPE) in-house to all professional staff. These seminars include sessions in governmental accounting, auditing and financial reporting, including Yellow book, single audit, IT audits and information systems and other accounting and auditing issues. In addition to the in-house training, our partners and professional staff attend various outside seminars. The number of hours of specialized training received in the last three years by supervisory personnel assigned to the audit engagement in governmental accounting and auditing, including information technology auditing, is indicated in each respective resume included in this proposal. Marcum is also committed to providing professional development programs to the entire South Florida community involved in the governmental sector. For the past 19 years, Marcum has presented an annual Governmental Symposium, which is an 8 hour accounting and auditing seminar that focuses on current developments in governmental affairs, including accounting, legal and operational topics. We encourage our clients, and non -clients, at no cost to them, to attend this technical (CPE) Symposium. All members of the audit team meet or exceed the CPE requirements mandated by professional auditing standards (including Government Auditing Standards) and all CPAs assigned meet or exceed the CPE mandated by the State Board Accountancy. MARCUM Proposal for External Auditing Services www.marcumllp.com ■ Page 19 0514025F ACCOUNTANTS ♦ ADVISORS 1. PARTNERS Partners have the primary responsibility for assuring that the Firm's commitments to the client are carried out to the client's satisfaction. PARTNERS ssentiaT Functions s r!aRes `onsible-for irmvide:audit llocatesFirm's resources to-:mee;:client's.:nee ssumes overall_;res'onsibil`t for.`auditt __ iscusses' rnp`ortant.aspects of;audit'with clien esolves any'audit issues with client' eviews the audit.documentation.;to,ensure ev ewsf nanciaf statements, auditor's repo )mments and discusses them lnrith' client 'ns - s:and:mana ement-aetters:= _ 9 eets.wif ` 9_. o. as eeded•aiasi• ates:.progressof.t e;;engagement, roolems, and_re olutiions:to-tlie clien' 2. MANAGERS The managers oversee the engagement and communicate with the client on a one-on-one basis. . f;•` ssent a1 Fu f �r" - fans:sch" edules`aiP eme - d-staffs:,t - - lie�en a n- r IgiOes:inte00jkOntrols,rpr ,,;_;_,. . and-w,ork..p ams re"'ared`:b°�st ro9r R.P,: ewsworking papers; for accuracy: and completeness:°and reviews fnanciai `'_ 'statements for suitability of presentation and'adequacy of d►sclosures 'Anticipates'.problem„areas of,the:en6'ag'erment'and"uestions;thatxwill:,ggp, m., r: Keeps partners informed oAlf l important developments on the engagement, es. roblems.and:.recornmendssolutions:=::<_ Supeniises allstaff and:r.;ev ews workpapers prepared by.staff;to :ensure!that;thE repared m accordance wltfi generally accepted professional and` Firm standa Resolves accounting„andaudittiO :roblems;as:the Reviews with the partner significant findings or questions that arise involving ,s. a =`e s_; accounting principles or statement presentations en s for"" m ma`"a" eme t_letf r' Reviews financial statements,, notes, schedules, and management letters for lit :discussion between the:' artri r =e ,and:the'clierit:=`-;:_r Gommunicates the engagement's, progress'.p other_concerns to the bDent �" �` rpbiems, resolutions MARCUM ACCOUNTANTS A ADVISORS Proposal for External Auditing Services www,marcumllp.com ■ Page 20 0514025F 1 city of Miami 3. SUPERVISORS Supervisors are the liaison between the partners, the manager and the client. ssential Functions • Supemses staff and reviews workpapers prepared by seniors and staff Ito ensure that they are prepared in accordance with generally accepted professional and firm standards • Performs :audit procedures as assigned by the manager • Resolves accounting and auditing problems as they arise • Studies and evaluates the client's internal controls • Reviews with manager significant findings or questions'involving`laccour tin principles: or statement presentation • Writes comments`for management letter • Reviews financial statements, notes, schedules and management lettersfoi later discussion between the manager and the client • Communicates the engagement's progress problems resolutions and other concerns to the client 4. SENIOR/STAFF AUDITORS Senior and Staff Auditors perform a wide variety of diversified assignments under the direction of supervisory professionals. SENIOR/STAFF AUDITORS ssential Functions; • Performsless complex audit procedures`as assigned by • Performs tests of transactions and accounts • Preparesand indexes audit documentation • Tests client accounting and analysis schedules • Proposes audit adjustments for review b'y the supervisor • Assists in preparing confirmation requests for mailing • Informs the supervisor of audit issues • Assists mproofing financial statements MARCUM ACCOUNTANTS ♦ ADVISORS Proposal for External Auditing Services www.marcumllp.com ■ Page 21 0514025F Resumes Page 22 Michael Futterman is a Partner in the Firm's Assurance Division and is the Partner -in -Charge of the Governmental Services Practice for the Florida Region. He focuses much of his work in the local government, not -for -profit and employee benefit plan sectors. With more than 24 years of professional experience, Mr. Futterman provides guidance on accounting and financial reporting matters as well as operational and administrative efficiency matters. In addition, he conducts peer reviews for small and mid -size accounting firms. Mr. Futterman is responsible for quality control review of the Florida Region ERISA audit engagements. Additionally, he performs quality control reviews of engagements for governmental entities, governmental pension plans, and not -for -profit organizations. Within the Firm, Mr. Futterman is actively involved in training and compliance initiatives. He is responsible for developing internal training programs for the governmental, not -for -profit, and ERISA assurance staff, as well compliance with continuing professional education requirements. Mr. Futterman serves on the Florida Assurance Division's Board of Directors and its accounting & auditing technology committee. Professional & Civic Affiliations American Institute of Certified Public Accountants (AICPA) Florida Institute of Certified Public Accountants (FICPA) Florida Government Finance Officers Association (FGFOA) Government Finance Officers Association (GFOA) GFOA Special Review Committee Miami -Dade, Broward & Palm Beach Counties Leagues of Cities Florida Public Pension Trustees Association Florida Association of Special Districts AICPA Employee Benefit Plan Audit Quality Center, Designated Audit Partner AICPA Governmental Audit Quality Center, Designated'Audit Partner Dade Schools Athletic Foundation, Treasurer Articles, Seminars & Presentations "Risk -Based Approach to Governmental Audits," Internal Training Governmental Accounting (GASB) and Government Auditing Standards, "Internal Training" "Federal and Florida Single Audit Acts," Internal Training "ERISA Pension Plans," Internal Training "The New Risk Assessment Standards," Internal Training "ERISA Employee Benefit Plan Audits," Rachlin News, Fall 2006 "Auditing 401 (k) Plans," Presentation to Potential Clients in conjunction with Merrill Lynch "GASB Statement No. 34," Presentation to University of Miami Students "Preparing a Comprehensive Annual Financial Report," FICPA Training CPE (past three years) Governmental Other (Accounting, Auditing, Technical and Behavioral) Total 154 Phone 305.995.9610 michael.futterman@marcumllp.com www.marcumllp.com AREAS OF EXPERTISE Financial Audits Federal Single Audits Florida Single Audits Employee Benefit Plans Operations or Performance Reviews • Agreed -Upon Procedures Attestation Services, Consulting Services Peer Reviews KEY CLIENTS Local Governments Special Districts Governmental Pension Plans ERISA Pension Plans Not -for -Profit Organizations EDUCATION Bachelor of Business Administration, "- Florida Atlantic'University MARCUMGROUP MEMBER *Licensed by the States of Florida and New York' ACCOUNTANTS A ADVISORS Page 23 CURRENT AND FORMER GOVERNMENTAL CLIENTS MICHAEL D. FUTTERMAN, CPA Government Experience Years on Job Includes Utility Single System Audit rowan I;Coian AviationDepartmen Of- Boca' Raton al aet MILORMLoa— Marat iramar. • o `h ff1.DroN oft-S f e urnylsles airri;;Beac n 4.55 fwn4o e "Rena__ Men ay Harbor`lsland wnoi outl%'Palm E ngtt pillage of.Palmetto 6 'la_eof- *Current Client MARCUM Proposal for External Auditing Services www.marcumllp.com • Page 24 0514025F ACCOUNTANTS ♦ ADVISORS NESTOR CABALLERO, CPA, MST, CGAP Co -Engagement Partner Nestor has over 20 years of experience serving governmental and not -for -profit clients. He has extensive experience in analyzing and evaluating internal controls over all major financial processes of governmental and not -for -profit entities, and in auditing federal and state grants in accordance with OMB Circular A- I33 and Rules of the Florida Auditor General, respectively. GOVERNMENTAL AND NOT -FOR -PROFIT CLIENTS Village of El Portal, Florida • Town of Briny Breezes, Florida • City of Hialeah Gardens, Florida • City of Doral, Florida • City of Tamarac, Florida ® City of Oakland Park, Florida • City of South Miami, Florida Town of Miami Lakes, Florida ▪ Town of Southwest Ranches, Florida Town of Lauderdale By The Seas, Florida • City of Hialeah, Florida • City of North Miami, Florida • City of Pembroke Pines, Florida • City of Homestead, Florida • Homestead Housing Authority ® Punta Gorda Housing Authority West Palm Beach Housing Authority Virgin Islands Housing Authority ® Riviera Beach Housing Authority • Hialeah Housing Authority Venice Housing Authority • Orlando Housing Authority ® Tampa Housing Authority ® Palm Beach County Housing Authority • Lee County Housing Authority Winter Park Housing Authority • Housing Finance Authority of Miami Dade The Sundari Foundation, Inc. ▪ The Lotus Endowment Fund, Inc. • Miami Bethany Community Services, Inc. • The Herald Charities, Inc. ASPIRA of Florida, Inc. • Food for the Poor, Inc. ® Broward Center of the Performing Arts • City of Hialeah Education Academy, Inc. • ASPIRA North Youth Leadership Charter School ASPIRA South Youth Leadership Charter School • City of Pembroke East Campus Elementary and Middle Charter City ® City of Pembroke West Campus Elementary and Middle Charter City Downtown Miami Charter School PROFESSIONAL AND BUSINESS AFFILIATIONS AICPA Governmental Audit Quality Center, Designated Audit Partner AICPA Employee Benefit Plan Audit Quality Center, Designated Audit Partner AICPA, Member • Florida Institute of Certified Public Accountants, Member • FICPA, Accounting Principles and Auditing Standards Committee, Member, Past Member ® Miami Dade League of Cities - Member • Government Finance Officers Association, Member ® Government Finance Officers Association, Member, Special Review Committee • Florida Government Finance Officers (Small Governments Committee), Member • Dade/Broward Government Finance Officers Association, Member ® Cuban American Certified Public Accountants Association, President • Florida Association of Special Districts, Associate Member EDUCATION Master of Taxation, Florida International University Bachelor of Accounting, Florida International University 1II11I11I111IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIllllllIIl1II III IIII1III1IIIIIIIIIII1111IIIIII1IIIIIIIIIIIIII11111111 Alberni, Caballero & Company, L.L.P. Page 25 Beila Sherman has more than 20 years of experience providing accounting, auditing and advisory services for a wide range of entities. As a Director in the Firm's Assurance division, her primary responsibilities include on -site supervision and review of audit engagements to ensure they are prepared in accordance with professional and Firm standards. Ms. Sherman provides guidance to clients ranging from complex accounting issues to general business and accounting developments. She has significant experience in the evaluation of internal controls. In addition, Ms. Sherman develops in-house training seminars for the Firm's professional staff as well as continuing education courses for various outside organizations, on current accounting and auditing matters. She is actively involved in the division's professional development activities. Professional & Civic Affiliations American Institute of Certified Public Accountants (AICPA) Florida Institute of Certified Public Accountants (FICPA) Florida Institute of Certified Public Accountants - CIRA Section Government Finance Officers Association (GFOA) Canadian Institute of Chartered Accountants (CPA) South Florida Government Finance Officers Association, Associate Member (SFGFOA) Miami -Dade, Broward and Palm Beach Counties Leagues of Cities Articles, Seminars & Presentations Internal CPE Training, Instructor "Governmental Accounting (GASB) and Government Auditing Standards", Internal Training "Federal and Florida Single Audits Acts", Internal Training Florida School of Government Finance Instructor FGFOA Presenter FASD Presenter CPE (past three years) Governmental 140 Other (Accounting, Auditing, Technical and Behavioral) 75 Total 215 Phone 954.320.8032 beila.sherman@marcumllp.com www.marcumllp.com AREAS OF EXPERTISE Financial Audits Federal Single Audits Florida Single Audits •Op • erational & PerformR ance eviews Agreed -upon Procedures Attestation .Services Advisory Seances Peer Reviews KEY CLIENTS. Local Governments Not -for -Profit Organizations CIRA Organizations Iholesale & Retail Distributors Manufacturers Construction Companies Real Estate Companies EDUCATION Bachelor of Business Administration, Mount Saint Vincent University u.J MARCUMGROUP MEMBER Licensed by the State of Florida ACCOUNTANTS A ADVISORS Page 26 CURRENT AND FORMER GOVERNMENTAL CLIENTS BEILA SHERMAN, CPA Government Experience "oca Fat Years on Job Includes Utility Single System Audit of Hailantl`ale Bedbi e.sTe_A y of North' F esta m ami Dade Water & Sewer.Departmen no outh Palm Beacr illage of eques *Current Client MARCUM Proposal for External Auditing Services www.marcumllp.com ■ Page 27 0514025E ACCOUNTANTS A ADVISORS Antonia Namia is a Senior Manager in the Firm's Assurance. Division. In this capacity, he is responsible for the assessment of the internal controls of Firm clients as they relate to financial audits. He is a member of Marcum's Technology Assurance Services Practice group and Healthcare Industry group. Mr. Namia has more than 12 years of experience working with technology in the business sector. His experience includes IT infrastructure, e-mail systems, backup, data recovery and networking. He has assisted with numerous audit engagements, developing and assessing IT risk assessments over financial reporting, IT security, disaster recovery and information systems management. He is an expert in the use of computerized audit techniques to access and analyze data to maximize audit efficiency. In addition, Mr. Namia has worked with Marcum's computer forensics and information security teams, helping to bridge the gap between financial audits and internal controls and information systems auditing. Some of his recent IT assessments for financial audits have dealt with issues including IT risk assessments, risk -based management, Sarbanes-Oxley, IT governance, controls and processes. Professional & Civic Affiliations American Institute of Certified Public Accountants (AICPA) Florida Institute of Certified Public Accountants (FICPA) Information Systems Audits and Controls Association, Member Articles, Seminars & Presentations "ePace for Beginning and Advanced Users," Internal Training "Risk Assessment Standards, A Focus on IT Controls," Internal Training "Lease Accounting Updates," SEC Insights CPE (past three years) Governmental 48 Other (Accounting, Auditing, Technical and Behavioral) 148 Total 196 El Phone 561.653.7313 antonio.namia@marcumllp.com www.marcumlip.com AREAS OF EXPERTISE Accounting Commercial and SEC Audits 'Financial Reporting Internal Controls Risk Assessments Risk Assessment Standards Information Systems Reviews 1KEY;CLIENTS Healthcare Organizations Technology Energy Suppliers Commercial Entities Public Companies` Local Governments EDUCATION Bachelor of Business Administration, Accounting Florida Atlantic University CERTIFICATIONS Certified Information Technology Professional (CITP MARCUMGROUP MEMBER *Licensed by the State of NewYork ACCOUNTANTS ♦ ADVISORS Page 28 Enrique Llerena is a Manager in the Firm's Assurance Division. He has approximately 8 years of experience in the accounting profession specializing in the governmental and not -for -profit sectors. He has worked with a variety of clients, including governmental pension and 401(k) plans. Mr. Llerena is involved in all phases of the audit process, from planning and initial risk assessment to ensuring compliance with all State and Federal laws, and the preparation and review of financial statements. He has extensive experience in the evaluation of internal controls and ensuring that financial statements are prepared in accordance with Firm and professional standards. Mr. Llerena also is involved in training initiatives for the Firm's staff and also serves on the panel for annual governmental training within the Firm. Professional & Civic Affiliations American Institute of Certified Public Accountants (AICPA) Florida Institute of Certified Public Accountants (FCPA) Miami -Dade, Broward and Palm Beach Counties Leagues of Cities, South Florida Government Finance Officers Association (SFGFOA), Association Member Florida Government Finance Officers Association (FGFOA) Government Finance Officers Association (GFOA) Cuban -American Certified Public Accountants Association Inc., Director Articles, Seminars & Presentations Internal CPE Training, Instructor "Governmental Accounting (GASB) and Government Auditing Standards", Internal Training FGFOA Conference Presenter, "Clarified Auditing Standards" SFGFOA Presenter, "Financial Audit Preparation" CPE (past three years) Governmental 118 Other (Accounting, Auditing, Technical and Behavioral) 78 Total 196 Phone 305-995-9614 enrique.11erena@marcumllp.com www.marcumllp.com AREAS OF EXPERTISE Financial Audits Federal Single Audits Florida Single Audits Employee Benefit Plans Agreed -Upon Procedures Attestation Services Operational & Performance Reviews Internal:' Control Reviews Consulting Services KEY CLIENTS Local Governments Not -for -Profit Organizations Governmental. Pension Plans ERISA Pension Plans Special Districts Authorities EDUCATION Master of Accounting, Florida International University Bachelor of Science, Accounting, Florida International University MARCUMGROUP. MEMBER *Licensed by the State of Florida ACCOUNTANTS • ADVISORS Page 29 CURRENT AND FORMER GOVERNMENTAL CLIENTS ENRIQUE LLERENA, CPA Government Experience .. Years on Job Includes Utility Single Audit System owa fH alea__ 3eact _ar© Co:n * Current Client MARCUM ACCOUNTANTS A ADVISORS Proposal for External Auditing Services www.marcumllp.com • Page 30 0514025E 7 Moises Ariza is a Supervisor auditor in the Firm's Assurance Division. He has approximately 5 years of experience in the accounting profession providing accounting, and auditing, for local government, and public and private enterprises across a variety of industries, both domestically and internationally. He provides services to a wide range of clients within the aforementioned industries, these include: manufacturing, not -for -profit, telecommunication, and employee benefit plans. In addition, Mr. Ariza has significant expertise in performing Federal and Florida Single Audits in accordance with OMB Circular A-133 and the Florida Single Audit Act, as well as program -specific compliance audits. Mr. Ariza is involved in all phases of the audit process, from planning. and initial risk assessment to ensuring compliance with all State and Federal laws, and the preparation and review of financial statements. He is client service driven and is always willing to assist clients with accounting, auditing and financial reporting issues, including but not limited to, implementation of new accounting pronouncements. Professional & Civic Affiliations American Institute of Certified Public Accountants (AICPA) Florida Institute of Certified Public Accountants (FICPA) Association of Latin Professionals in Finance and Accounting (ALPFA) CPE (past three years) Governmental 75 Other (Accounting, Auditing, Technical and Behavioral) 103 Total 178 • Phone 305.995.9612 moises.ariza@marcumllp.com www.marcumllp.com AREAS OF EXPERTISE Financial Audits Federal Single Audits Florida Single Audits Program Specific Compliance Audits BSA/AMLCompliance KEY CLIENTS. Not -for -Profit Organizations Local Governments Governmental Pension Plans ERISA Pension Plans Special Districts Wholesale & Retail Distributors Manufacturers EDUCATION Bachelors of Accounting — Florida international University Masters of Accounting - St. Thomas University MARCUMGROUP MEMBER *Licensed by the State of Florida. ACCOUNTANTS A ADVISORS Page 31 CURRENT AND FORMER GOVERNMENTAL CLIENTS MOISES ARIZA, CPA Government Experience oruestea tl; Years Includes Utility Single on Job System Audit oISxa rs� 'lllageo iscayne allantlaie Beac„ t Pat Sec Ater ewer DeppAri en * Current Client MARCUM Proposal for External Auditing Services www.marcumllp.com ■ Page 32 0514025F ACCOUNTANTS s ADVISORS YANNICK NGENDAHAYO Supervisor Yannick has over 8 years of accounting and auditing experience in not -for -profit, for -profit and governmental entities. His extensive experience as an accountant and an auditor includes examining accounting records to help ensure the reliability and integrity of financial information; compliance with applicable laws and regulations; adherence with the established policies and procedures; implementation of internal controls; and evaluation management's achievement of goals and objectives. He also has substantial experience in auditing federal and state grants in accordance with OMB CircularA-133 and Rules of the Auditor General of the State of Florida, respectively. GOVERNMENTAL AND NOT -FOR -PROFIT CLIENTS E Village of Biscayne Park ® Village of El Portal o Town of Briny Breezes O City of Hialeah Gardens, Florida • City of Miami Springs • Miami Shore Village ® Virginia Key Beach Park Trust 6 Performing Arts Center Authority o City of Homestead Police Officers Retirement Plan • City of Homestead Elected Officials and Senior Mmgt (NEW) • City of Homestead Elected Officials' Retirement Plan (Old Plan) Winter Park Housing Authority b West Palm Beach Housing Authority ® Homestead Housing Authority ® Hialeah Housing Authority • Lee County Housing Authority ® Orlando Housing Authority • Pahokee Housing Authority ® Palm Beach County Housing Authority ® Punta Gorda Housing Authority ® FIAC —Americans for Immigrant Justice, Inc. ® The Herald Charities, Inc. • Human Services Coalition of Dade County / Catalyst Miami 9 Transition, Inc. H Power U Centers, Inc. ® Sweet Vine, Inc. 6 Family Counseling Services of Greater Miami Aspira of Florida, Inc. • Greater Miami Youth Symphony of Dade County, Florida, Inc 111111111111111111111121111111 PROFESSIONAL AND BUSINESS AFFILIATIONS • Florida Government Officers Association, Associate Member • NAHRO, Associate Member ▪ FAHRO, Associate Member EDUCATION Bachelor of Accounting, Johnson & Wales University 11111111111111111111111111111111IIIIIIIIIIIIIIIilliilillliililllllllllllllllllillllllllllilllllllllllllll1111111 Alberni, Cahallern & Company, L.L1. Page 33 PCAOB Inspection Results and Registration Page 34 Registered Firrns Page 1 of 3 B pub& Co ny Otaya&4 Itosight Board Registered Firms (Stay Connected: Find registered firms by name, location, or audit practice category, based on information reported by the firms in their most recent annual reports. Each registered firm is required to file an annual report that indicates which of these categories, described in the right-hand column, applies to the firm's audit practice for the 12-month period covered by the annual report. Click on individual firm names to access the firm's registration, annual and special report filings, inspection reports and disciplinary actions, if any. To locate a specific firm, enter all or part of the firm name in the search box. Hit clear to return to the entire list of firms. Please note that the following software will not display firm filings accurately: Versions 10.1.7 and 10.1.8 of Adobe ReaderX and Adobe Acrobat X Pro; and versions 11.0.03, 11.0.04, and 11.0.05 of Adobe Reader XI and Adobe Acrobat XI Pro. Firm Name CLEAR Marcum LLP REGISTERED FIRMS FILTER FIRM Marcum LLP SEARCH..FIRMS ::•. SORT BY: CITY Melville None -171 STATE GROUP BY: one . COUNTRY CATEGORY New York United States A RELATED INFORMATION w Global Networks CATEGORY DESCRIPTIONS A - Issued an audit report for at least one issuer B - Issued no audit reports for issuers but played a substantial role in the audit of at least one issuer C - Issued no audit reports for issuers, and did not play a substantial role in any issuer audits, but issued a report on the financial statements of at least one broker - dealer D - None of the above E - Has not yet filed a Form 2 Annual Report TO SORT FIRIVIS To sort this list by firm, city, state, country or category, select from the "Sort By" drop httn://ncaobus.ora/Reoi strati on/Firrns/Pa.pes/R es;ri stere.c1Firm S. a enx aI1nf7n7a ) ) PCAOB INSPECTION RANKINGS Ranked by Deficiency Rate for the Top 8 SEC Audit Practices in the United States 4E:Noitin *IT 14- * Includes Marcum Bernstein & Pinchuk ) ) MARCUM ACCOUNTANTS • ADVISORS 1 No. of Engagements No. of Engagements with One or More •Reviewed by PCAOB Deficiencies. Proposal for External Auditing Services www.marcumllp.com • Page 36 0514025F Letters of Reference Page 37 Water and Sewer PO Box 330316 « 3071 SW 38 Avenue Miami, Florida 33233-3016 T 305-665-7471 miamidade.gov May 9, 2014 City of Miami Miami Riverside Center 444 S.W. 2i'd Avenue Miami, Fir. 33130 Dear Sir/Madam: 1 strongly recommend Marcum LLP (Marcum). They have been providing auditing services to Miami -Dade Water and Sewer Department for the past nine (9) years and are under contract through FY2015, Marcum has cooperated extensively with our staff, consistently demonstrating high professional standards, skills and knowledge. Their staff has worked closely with us to plan each audit in order to meet our timelines. Marcum is thorough and follows through with any questions or requests, They develop a personal relationship with us, their client, and have taken the initiative to truly understand our organization. They are easily accessible, making themselves available for advice and providing recommendations throughout the year, not only during the course of the audit. Marcum's professionalism and responsiveness is outstanding. Sincerely, Vladimir Murad, CPA., JD Controller CITY OF FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT May 12, 2014 To Whom It May Concern: UNRISE FLORID A Phone; (954) 7416-3230 I am pleased to provide this letter of recommendation for the services provided by Marcum LLP to the City of Sunrise, We have been utilizing Marcum LLP for audit services for over 7 years and are very satisfied with the services they have provided to our City. The audit team is always courteous, professional and very responsive. All levels, including the partners, make themselves accessible to the organization not only throughout the audit process but throughout the year as well and offer their technical expertise in governmental accounting, auditing, and financial reporting when needed. The audit team is always thorough and extremely well informed. They have always met our timelines and due dates. The City of Sunrise highly recommends the firm of Marcum LLP to any organization requiring financial audit services, If there are any questions and/or comments regarding this letter of recommendation, do not hesitate to contact me Sincerely, Wendy Dunbar Assistant Director of Finance & Administrative Services CITY HALL • 201 WEST PALMETTO PARK ROAD • 6OCA RATON, FLORIDA 33432-3795 • PHONE: (561) 393.7700 (FOR HEARING IMPAIRED) TOD; (561) 367-7046 SUNCOM: (561) 022-7700 May 9, 2014 TO WHOM IT MAY CONCERN: The City of Boca Raton has been utilizing the services of Marcum LLP for over 7 years. We are extremely satisfied with the services that they have provided to our organization. The work performed by the partner to the staff level is to be commended. The audit team is always courteous, professional and very responsive. All audits were conducted in a timely, orderly, and systematic manner, encompassing all of the requirements of Government Auditing Standards and of the Governmental Accounting Standards Board (GASB), The firm's services have always been performed to the highest degree of professionalism, Their staff has always been very courteous, always willing to provide any required Information and offering suggestions to improve systems, methods of operation, and facilitate the financial processes in our organization. The firm has always been a dependable resource in providing timely Information and direction. The firm is always available to us throughout the year, not only during the audit, Please do not hesitate to contact my office if there are any questions regarding this letter of recommendation. Respectfully, Patricia White, C.P,A. Accounting Manager PW/037 CITY OF MIAMI SPRINGS William Alonso CPA CGFO Finance Department 201 WestwardDrive Miami Springs, FL 33166-5289 Phone: (305) 805-5014 Fax: (305) 805-5018 May 2, 2014 Mr, Nestor Caballero, CPA Alberni, Caballero & Company, LLP 4649 Ponce De Leon Blvd., Suite 404 Coral Gables, Fla. 33146 Dear Sirs: During the past 11 years, your firm has been responsible for the city's year end audit and subsequent presentation to Council of the city's CAFR. I would like to extend my appreciation for all of the professionalism with whieh your firm has performed this task. Your firm has met all of our deadlines, including the presentation of the CAFR to our Council during the first. Council meeting in January. Fuithermore, the city has been awarded the GFOA's certificate of achievement for its CAFR in each of those eleven years that your film has performed our audits. I would also like to extend our gratitude for your firm's assistance in the development of our accounting policies and procedures manual, as well as your firm's assistance in finding and correcting prior year accounting errors. Once again I want to thank you and your firm for your dedication and professionalism. illiam Alonso, CPA CJFO Assistant City Manager/Finance Director Department of Finance Robert Daddario, CPA Finance Director May 2, 2014 To Whom It May Concern: It is with great pleasure that I offer this recommendation of the audit services provided by Albemi, Caballero & Company, LLP. Alberni, Caballero & Company has been the Town'sauditors for the past seven years. During this time, the firm's principals and their staff have exhibited a high level of professionalism and they always dealt with us in a patient, friendly and respecfful manner. I have complete confidence in seeking their advice on governmental accounting and reporting issues given their extensive background and experience in such matters which makes them well qualified to offer advice in these areas. What I appreciated most was their "practical" way of addressing complex, technical issues and recommending possible solutions. While the Town of Cutler Bay is a relatively small municipality, the firm's principals and their staff treated us with importance and always made themselves available to the Town Council and Town Staff as needed. This was greatly appreciated by everyone here at the Town. Should you have any further questions, please feel free to call me at the Town. Sincerel obert Daddario, CPA Finance Director 10720 Caribbean Boulevard, Suite 105, Cutler Bay, FL 33189 (305) 234-4262 Office <305) 234-4251 Fax www.cutlerb .yti.gov DISCONTINUED GOVERNMENTAL AUDIT CLIENTS The only Marcum Florida governmental audit client that discontinued our audit services in the past 2 years was the Children's Trust located in Miami -Dade County. We completed our 5 year contract with the Trust and their charter requires mandatory rotation of audit firms. We wouldn't really consider this a discontinuation as it was contract expiration. AC&C did not have any discontinued governmental audit clients in the past 2 years. MARCUM ACCOUNTANTS A. ADVISORS Proposal for External Auditing Services www.marcumllp.com ■ Page 43 0514025F 4. Technical Qualifications Page 44 4a. Ability and Experience to Perform Required Services Page 45 List of Municipal Clients Page 46 CURRENT AND SIMILAR ENGAGEMENTS CLIENT NAME SCOPE OF WORK FINANCIALS PREPARED BY GFOA CERTIFICATE PARTICIPANT Miami -Dade County ;loci inanca Audit anc arcum Cityof Homestead,' Financial Audit and Single_ Audit, Client Yes_:`: -Indian Creek Financial Audit .. Mardurn Yes iami Dade;.Water&Sewer meat.';'. it and Sin9 le:Au Glien Bal. Harbour Village. Financial Audit and Single Audit Marcum .N Wno' slam Financial arcum; Town of Surfside Financial Audit Marcum Yes: Village of Key Biscayne. Financial Audit Marcum. ,. - :Yes .` Broward County :Chil.drena: rower_ ervices: nancia an ale Beact Fi nancial;Aud it''and'; arcum: uflrlsE ;financial `i't and .dutliwest argil knancial area Palm Beach County City of Boca Raton:_ Financial.Audiit and Single Audit Clienf es City of Greenacres Financial Audit and. Single Audit Marcum:`..; Yes:.;. City of West Palm Beach Financial Audiit.and Single Audit, Client Yes Northern. Palm Beach Cdun Improvement District astewa reatman an,i Financial Audit. nest h; nan'cial Monroe County orida on. Financial MARCUM ACCOUNTANTS A ADVISORS Proposal for External Auditing Services www.marcumllp.com ■ Page 47 0514025F SELECT CURRENT GOVERNMENT ENGAGEMENTS OUTSIDE OF FLORIDA MARCUM ACCOUNTANTS ♦ ADVISORS Proposal for External Auditing Services wwwomarcumllp.com ■ Page48 0514025F 1 } ALBERNI, CABALLERO & COMPANY, LLP'S GOVERNMENTAL AUDITS FY 20i3 GOVERNMENTS. of Hialeah nancial an Single Aud of iialeait Garden inancial;and Single Audi City of Miami Springs of Dora Miami Shores Village Financial and Single Audit inancial and Sin Ile Au Financial and Single Audit e Childrens Trust financial and Single Audit; :Village of EI Portal Cutler; Performing Arts Center Authority'; Financial Audit inanaal Au Financial Audit own of Briny Breezes; financial Audi Florida Location iarrii=Da iami-Dadee Miami -Dade iami-Dade Miami -Dade t_a Miami -Dade iami- Miami -Dade • alhi each: Total Engagement Hours 350 600 250 300 MARCUM ACCOUNTANTS ♦ ADVISORS Proposal for External Auditing Services www.marcumllp,com ■ Page 49 0514025F References Page 50 REFERENCES We provide the names, addresses, telephone numbers and e-mail addresses of five (5) current Florida Governmental references in which the firm serves as principal auditors. Additional references can be provided upon request. For each reference listed, their latest CAFR is available on their website. Firm Name: Address City State Zip Marcum LLP One Southeast Third Avenue, 16th Floor Miami, Florida 33131 Agency Name Address City/State/Zip Phone/Fax Contact Name/Title Email Address Scope of Work Contract Term Partner Total Hours Agency Name Address City/State/Zip Phone/Fax Contact Name/Title Email Address Scope of Work Contract Term Partner/Manager Total Hours City of West Palm Beach 401 Clematis Street, 5th Floor West Palm Beach, Florida 33401 561-822-1328 Michele Sias, Finance Director msias(cr�wpb.org Financial Audit and Single Audit 2011-2015 Michael Futterman 1,400 Miami -Dade Water & Sewer Depaitinent 3071 S.W. 38th Avenue, Room 403 Miami, Florida 33146 786-552-8001 Vladimir Murad, Controller muradv@miamidade.gov Financial Audit and Single Audit 2004-2010; 2011-2015 Michael Futterman / Enrique Llerena 1,300 Agency Name City of Boca Raton Address 201 West Palmetto Park Road City/State/Zip Boca Raton, Florida 33432-3795 Phone/Fax 561-393-7737 / 561-367-7009 Contact Name/Title Linda Davidson, Financial Services Director Email Address ldavidson@ci.boca-raton.fl.us Scope of Work Financial Audit, Single Audit and Defined Benefit Plan Audit Contract Term 2008-2014 Partner Michael Futterman Total Hours 1,000 Agency Name Address City/State/Zip Phone/Fax Contact Name/Title Email Address Scope of Work Contract Tettn Partner/Manager Total Hours Agency Name Address City/State/Zip Phone/Fax. Contact Name/Title Email Address Scope of Work Contract Term Partner Total Hours Agency Name Address City/State/Zip Phone/Fax Contact Name/Title Email Address Scope of Work Contract Term Partner Total Hours City of Sunrise 10770 West Oakland Park Boulevard Sunrise, Florida 33351 954-746-3297 / 954-572-2469 Wendy Dunbar, Assistant Finance Director wdunbar(2i cityofsunrise.org Financial Audit and Single Audit 2007-2012; 2013-2018 Michael Futterman / Enrique Llerena 950 City of Homestead 790 North Homestead Boulevard Homestead, Florida 33030 305-224-4543 / 305-224-4569 Carlos Perez, Finance Director cperez@citvofhomestead.com Financial Audit and Single Audit 2008-2014 Michael Futterman 900 Florida Keys Aqueduct Authority P.O. Box 1239, 1100 Kennedy Drive Key West, Florida 33041-2454 305-296-2454 Tim Esquinaldo, Internal Compliance Auditor tesquinaldo@fkaa.com Financial Audit 2010-2018 Michael Futterman 475 S:\BUSINESS\Common\FL\MIA\M. FUTTERMAN\RFP and Proposals City of Miami Audit Services\Re£erence List.docx Workload Page 53 WORKLOAD Marcum's Florida governmental services practice focuses on audit and consulting services in South Florida. We have 184 people in our 3 South Florida offices and 1,300 people nationwide. Staffing the audit of the City of Miami, will not be an issue for a national firm. We will have other governmental audits in progress at the same time with sufficient resources to meet the City's needs, without exception. Guaranteed! MARCUM ACCOUNTANTS ♦ ADVISORS Proposal for External Auditing Services www.marcumllp.com • Page 54 0514025F 4b. Audit Approach Page 55 SPECIFIC AUDIT APPROACH Scope of Services Based on our understanding of the expectations and requirements of the City as set -forth in the request for proposal, the following is a summary of the scope of our work. All work will be completed in the timeframe specified in the request for proposal. Audit of the City's Financial Statements The Firm will perform an audit of the financial statements of the City for the fiscal years ending September 30, 2014 through September 30, 2018. The objective of the audit is the expression of an opinion that the financial statements are fairly presented, in all material respects, and in conformity with accounting principles generally accepted in the United States. The Firm will issue the following .reports in accordance with Generally Accepted Auditing Standards and Government Auditing Standards: • Report on the fair presentation of the basic financial statements as a whole in conformity with accounting principles generally accepted in the United States. • Report on internal control over financial reporting and on compliance with laws and regulations and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards. • Management letter in accordance with the Rules of the Auditor General. As applicable, the Firm will perform a single audit in accordance with generally accepted auditing standards, Government Auditing Standards, the Federal Single Audit Act the provisions of OMB Circular A-133, the Florida Single Audit Act, and the Rules of the Auditor General of the State of Florida. The following additional reports will be issued: • Report on the schedule of expenditures of federal awards and state financial assistance. • Report on compliance and internal control over compliance applicable to each major federal awards program and state financial assistance project. • Schedule of findings and questioned costs. We will also provide technical assistance to ensure the City's Comprehensive Annual Financial Report meets all the requirements of the GFOA's Certificate of Achievement for Excellence in Financial Reporting. Each year, we will also review the (AFR) annual financial report filed by the City with the Department of Financial Services, pursuant to section 218.32, Florida Statutes, to verify that it is in agreement with the audited financial statements. Required Standards The Firm's audit will be performed in accordance with the following requirements, as applicable: • Statements on Auditing Standards issued by the AICPA • Government Auditing Standards, issued by the Comptroller General of the United States • Codification of Governmental Accounting and Financial Reporting Standards, as promulgated by the Governmental Accounting Standards Board • Audit and Accounting Guide, State and Local Governments, published by the American Institute of Certified Public Accountants (AICPA) • Statements and interpretations issued by the Financial Accounting Standards Board • Florida Statutes, Chapter 189 and 11.45 • Florida Statutes, Section 218.39 • Rules of the Auditor General of the State of Florida, Chapter 10.550 MARCUM ACCOUNTANTS ♦ ADVISORS Proposal for External Auditing Services www.marcumllp.com ■ Page 56 0514025F • State of Florida Department of Financial Services • OMB Circular No. A-133, Office of Management and Budget, Audits of the States, Local Governments and Non -Profit Organizations issued by the United States • United States Single Audit Act of 1996, as amended • Florida Single Audit Act, (Section 215.97, Florida Statutes) and Chapter 270-1, Rules of the Executive Office of the Governor • All other applicable provisions of rules, regulations, statutes or orders which may pertain to the engagement Monitoring and Communication The Firm will report the following information to the City Commission. • The auditor's responsibility under generally accepted auditing standards and Government Auditing Standards • Significant accounting policies • Management's judgments and accounting estimates • Significant audit adjustments; uncorrected misstatements • Other information in documents containing audited financial statements • Disagreements with management • Management consultation with other accountants • Major issues discussed with management prior to retention • Difficulties encountered in performing the audit Should the audit team become aware of fraud, irregularities or illegal acts, they will make an immediate written report to the parties listed in section 3.2, part D.4, of the request for proposal. MARCUM ACCOUNTANTS A ADVISORS Proposal for External Auditing Services www.marcumllp.com ■ Page 57 0514025F The audit will be conducted in four phases, as shown below. These phases are discussed in more detail on the following pages. Documentation Reviewed by Partners Prepare Auditor's Reports _; Phase Strategic Planning Phase 11 Execution of the Audit Plan Test Compliance with Laws, Rules, Regulations, and Contracts Phase Ill Evaluation of Audit Results Auditor's Conclusions Documented. Review the Financial Statements Preliminary Discussion with Management of Audit Findings Discuss Final Results with Management Presentation to the City Commission MARCUM ACCOUNTANTS s ADVISORS Proposal for External Auditing Services www,marcumllp.com • Page 58 0514025E 1 } Phase 1: Strategic Planning A thorough understanding of the City and its operating environment is essential for developing an efficient, cost-effective audit plan. During this phase, the engagement partner and key supervisory personnel will meet with the appropriate personnel to update an understanding of operations. You will also have the opportunity to express your expectations regarding the services that we will provide. This effort will be coordinated so that there will be minimal disruption to your staff. During this phase we will perform the following activities: • Review the current regulatory and statutory compliance requirements within which the entity operates. This will include a review of applicable federal and state regulations; ordinances, bond covenants, contracts, and other agreements; meeting minutes of the City Commission. • Review major sources of information such as budgets, organization charts, procedures manuals, financial systems and management information systems. • Determine the most practical and effective way to apply computer -aided audit tools to convert and analyze data and generate reports. • Review internal control systems, including determining an audit risk assessment. • Consider the methods used to process accounting information that influence the design of the internal control system. This includes understanding the design of relevant policies, procedures, and records and whether they have been placed in operation. • Design audit programs to ensure that they incorporate financial statement assertions, specific audit objectives and appropriate audit procedures to achieve the specified objectives. • Identify and resolve accounting, auditing and reporting matters. • Prepare detailed audit plans, including a list of schedules to be prepared by the City personnel. Risk -Based Audit Technologies The Firm employs a risk -based approach early in the audit process. This approach considers how the overall risk identified in the general risk analysis affects specific account balances. We consider, in part: • Relative significance of the account to the financial statements as a whole • Volume of transactions • Susceptibility of the account to fraud • Accounts that have traditionally required significant adjustments • Account with complex calculations, judgment, and accounting issues that have a high assessed level of inherent risk Based on these considerations, we assess the inherent risk and control risk to determine the overall audit risk. Once this assessment is completed, the audit procedures to be used are determined. By redirecting our efforts through a risk -based approach, audits are significantly enhanced, which provide greater value to our clients. The Firm will use several approaches to conduct the audit engagement. These approaches include traditional audit techniques and strategies, and an evaluation of the systems utilized by the City. Specific Fraud Investigative Techniques Professional Auditing Standards imposes on auditors the additional responsibility to "plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements due to fraud." By redirecting our efforts through a risk -based approach and additional fraud inquiry techniques, audits are significantly enhanced. Phase 1►: Execution of Audit Plan The audit team will complete a major portion of transaction testing and audit requirements during this phase. The procedures performed during this period will enable us to identify any matters that may impact MARCUM ACCOUNTANTS • ADVISORS Proposal for External Auditing Services www.marcumllp.com in Page 59 0514025F the completion of our audit work or require the attention of management. Tasks to be performed in Phase II include, but are not limited to: • Apply analytical procedures to assist in planning the nature, timing and extent of auditing procedures used to obtain evidential matter for specific account balances or transaction classes. Analytical proce- dures are utilized in almost every audit area tested, • Perform substantive account balance and transaction tests. Statistical samples will be drawn from major transaction systems, including cash disbursements, cash receipts, accounts payable, and payroll. The size of the samples will be determined after the review of the internal control system. There are three types of tests that involve audit sampling (statistical and non -statistical sampling): Account Balance Tests Substantive tests of account balances are performed on year-end balances. Certain accounts justify a 100 percent examination, such as confirming a bank balance, which does not involve sampling at all. Transaction and Control Tests Substantive testing and control tests are often combined to use one sample to achieve more than one audit objective. We often test the controls to verify that the transactions were properly authorized in accordance with the City's procedures. Under the Federal and Florida Single Audits, we are required to test internal controls over compliance for each major program. Compliance Tests Compliance tests with laws and regulations are included with the tests of transactions and controls. Additional samples are sometimes necessary to test specific laws and regulations. Sample sizes for compliance testing are determined based on the number of transactions and the significance of the requirement. The audit team will report on a weekly basis to Management the status of any potential adjustments so that Management may have adequate time to investigate, gather information and respond, if necessary. Information Technology Audit Techniques In accordance with Professional Auditing Standards, we are required to gain an understanding of the procedures, both automated and manual, by which transactions are initiated, recorded, processed and reported, from their occurrence to their inclusion in the financial statements. During the planning stage of our audit, we evaluate the effect information technology (IT) will have in performing our audit procedures. This evaluation includes obtaining an understanding (generally through observations and inquiries of IT personnel) of internal controls and identifying those controls that are automated. When key internal controls are automated, we use our IT specialist to perform a detailed review of those automated controls. Our IT specialist will then communicate to the audit engagement team as to whether such controls are working as prescribed by management. With this information, the audit engagement team determines the extent of their audit procedures. In client situations where there is significant accounting data processed electronically, we use a state-of-the-art software program (IDEA) to extract and summarize computerized financial data files. Some of the uses of this program are: • Retrieving aged receivables information • Extracting credit balances in accounts receivable reports • Extracting sample items from reports for testing • Merging files for the purposes of extracting information that meets predetermined criteria • Sorting information • Footing reports • Searching for anomolies MARCUM ACCOUNTANTS A ADVISORS Proposal for External Auditing Services www.marcumllp.com ■ Page 60 0514025F This program provides an efficient way for us to extract and test computerized accounting information, enabling us to audit through the computer, rather than around the computer. Phase 111: Evaluation of Audit Results This phase includes a review of all audit documentation by the partners to ensure that testing and documentation support the conclusions reached. This phase also includes preliminary discussions with management of the audit findings. Phase IV: Reporting In this phase of the audit, the engagement team will complete the tasks related to the closing of year-end balances and financial reporting. This will include final testing in areas including compliance, balance sheet accounts, revenues and expenditures. Upon receipt of the draft of the MD&A, statical section, and transmittal letter, we will turn around a draft of the CAFR with our comments within seven to ten days. Final reports will be issued by the agreed upon date. The audit partner and/or audit manager will be available to attend the City Commission meeting to present the audit report. MANAGEMENT LETTER/FINDINGS The Firm will prepare a management letter for the City to identify systemic deficiencies observed. The letter also may offer recommendations for changes in accounting and other procedures in order to improve operations. As each potential management letter point is identified in the audit process, the engagement team will document the condition, our recommendation, and the benefits of the recommended action. All potential comments will be reviewed with key staff members before issuance. The Firm's policy is to prepare this report as a vehicle for suggesting improvements to enhance efficiency, management effectiveness, and the degree of internal control. Findings (material weaknesses and significant deficiencies and material instances of noncompliance) are required to be reported in writing and will be included in the schedule of findings and questioned costs. IDENTIFICATION OF ANTICIPATED POTENTIAL AUDIT PROBLEMS Marcum is proud of its recognition as a technical resource for accounting and auditing standards. We keep abreast of emerging technical issues with our clients and communicate accordingly. The Firm does not anticipate any potential audit problems. Our service team understands the industry issues relevant to the City. The combination of our Firm's resources, level of partner involvement and experienced team members provides an excellent service team of professionals capable of servicing your needs. Regular communication will be ongoing with City personnel, allowing for timely knowledge of matters as they arise. When we learn of matters the City may not be aware of, we will be active in conveying relevant information. We understand the audit and accounting requirements affecting your audit. As with other issues that may arise, we will work with Management throughout the year to achieve the appropriate resolution. MARCUM ACCOUNTANTS A ADVISORS Proposal for External Auditing Services www.marcumllp.com • Page 61 0514025F } 5. Fees for Services Page 62 Level Standard Rate 2014 Discounted Hours Rate City of Miami Cost Proposal - Audit Services 2015 Standard Discounted Total Level Rate Hours Rate Total Level 2016 Standard Discounted Rate Hours Rate Total Partners $375 200 $281 $56,250 Partner $290 $57,938 Partner $398 200 6 Director/Manager $275 400 $206 82,500 Director/Manager $283 400 $212 84,975 Director/Manager $292 400 $219 $87,524 Supervisor $190 700 $143 99,750 Supervisor $196 700 $219 05,825 Senior $170 1,200 $128 153,000 Senior $147 102,743 Supervisor $202 700 $151 105,825 Staff $170 500 $123 56,250 Staff $175 1,200 $131 157,590 Senior $180 1,200 $155 500 $116 57,938 Staff$119 162,318 $447,750 $159 500 $119 59,676 3,000 3,000 $461,183 3,000 $475,018 Total Fee Rounded $445,000 Total Fee Rounded $460,000 Total Fee Rounded $475,000 2017 2018 Standard Discounted Standard Discounted Level Rate Hours Rate Total Level Rate Hours Rate Total Partner $410 200 $307 $61,466 Partner $422 200 $317 $63,310 Director/Manager $300 400 $225 90,150 Director/Manager $310 400 $232 92,854 Supervisor $208 700 $156 109,000 Supervisor $214 700 $160 112,270 Senior $186 1,200 $139 167,187 Senior $191 1,200 $144 172,203 Staff $164 500 $123 61,466 Staff $169 500 $127 63,310 3,000 $489,269 3,000 $503,947 Total Fee Rounded $490,000 Total Fee Rounded All inclusive Maximum Price $2,374,000 $504,000 Notes: With respect to the Federal and Florida Single Audit, the quoted prices include the audit of 6 major grant programs. Each major program in excess of 6 major programs would be an additional $7,500 per major program. All expenses are included in the quoted fees, including any start up costs which are absorbed by Marcum. The quoted fees are based on the premise that we will be provided, prior to the start of audit fieldwork, all schedules and reports requested and that agree or are reconciled to the general ledger. Additonal services requested by the City will be performed at the rates provided above for the respective fiscal year. APPENDIX A Peer Review Reports Page 64 BR 1 EDWARDS Certified plilrlir ncxnuiatirats System Review Report To the Partners of Marcum LLP and the National Peer Review Committee We have reviewed the system of quality control for the accounting and auditing practice of Marcum LLP (the "firm") applicable to non -SEC issuers in effect for the year ended April 30, 2011. 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 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 Government Auditing Standards and audits of employee benefit plans. In our opinion, the system of quality control for the accounting and auditing practice of Marcum LLP applicable to non -SEC issuers in effect for the year ended April 30, 2011, 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. Marcum LLP has received a rating of pass. Roanoke, Virginia October 28, 2011 CERTIFIED PUBLIC ACCOUNTANTS Your Success is Our Focus 319 McClanahan Street, S.W. • P.O. Box 12388 • Roanoke, VA 24025-2388 •540-345-0936 • Fax: 540-342-6181 • www.BEcpas.com To the Partners of Marcum & Kliegman, LLP and the Center forPublio Company Audit Firms Peer Review Committee hre bavc reviewed the system of quality control fcrr the accounting 'and. auditing practice of Marcum & Klicgman, TIP ,(the firm) applicable to non -SEC issuers in effect for the year ended August 31, 200S. The fixm's accounting and auditing practice applicable,to SEC issuers was not reviewed by an since the Public Company Accounting Oversight Board (PCAOB) is responsible for inspecting that portion of the firm's accounting and auditing practice in accordance .with PCA.OB requirements. A system ofgnnlity control encompasses the fran's organizational structure and the policies adopted and procedures established to provide it with reasonable assurance of complying with professional standards. The elements of quality control are ri-scribed in the Statements on Quality Control Standards issued by the American Institute of Certified Public Accountants (the AICPA). The design of the system, ad. -compliance with it are the responsibilities of the firm. Our responsibility is to express an opinion on .the design of the system, and the firur's compliance with that system basest on ourreview. t review was conducted in accordance with. standards established by the Peer Review Committee of he Center for Public Company Audit Firms and irichided procedures to plan and perform the review that.•are summarized in the attached .description of the peer review process. Our review vrould'not necessarily disclose•all weaknesses in the system of quality control or all instances of lack of compliance with it since it was based on selective tests. Because There are inherent Iirnitations in the effectiveness of any system of quality control, departures from the system may occimr and. riot be detected, Also, projection of.any evaluation of a system of quality control to future periods is siibjcct.to the risk that the system ofquaiity control may become inadequate because of changes in conditions, or that the degree of compliance with .the polioics or procedures may deteriorate. In our opinion, the system of duality control for tht accounting and auditing practice applicable to the non -SEC issuers of Marcum & Kliegrnan, LEP in effect for, the year ended August 31, 2008, has 'been designed to meet the requirements of the quality control standards for an • accounting and anriiting practice established by the .A.ICPA., and was complied with during the year then ended to. provide the firm. with reasonable assurance of complying with applicable .professional standards. Roanoke, Virginia Deceniber 18, 2008 CER111.7.D PTJBLTC ACCOUNrA1' TS Pr n iatig Profrssianal Busfnesaddvliory ef; Lbnslaiag Seders 3:2Mc;rlanabaa Sttui,'S.W. - P.O. box 12385 • Rnannkq VA 24025-2388•• 540-345-D9iS • Fax: 540-i42-61.E1 • ww.w.B pas.rom INFANTE & COMPANY CEFat'i'IFJED P°UBLIC.ACCOUNTAn,TS Marsrbera ov Ceara file rif!tiertr haft Ftuna •TeK CriViSiOri %wrst Finaxisi fifsor;r1 5rr n Sul w, 27. 2012 BUSINESS CONSULTANTS System Review Report •itstr?3ori EibC.7¢raC Catrq SA* x3a 193DHarrison 5ereet f' 1..1 4c not* y� T Iephoria ( i• 322.886E fir( t54). 222.8.864 w:1w nf1artt.a.acparai Itcpasvaat,c om To The Partners of Alberni, Caballero & Company LLP and the Peer Review Crinunittce of the Florida.Znstitute of Certified Public Arcotintants We have reviewed the system of quality control for the accounting .and auditing practice of. Caballero & Cornpan'y LLP (the firm) in effect for the year. ended November 30, 2011. 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 Jinn is responsible for designing a system of quality control and corl5plying. with it to- pro vide 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 fi.r m's compliance therewith based on our review. he nature, objectives, scope, limitations of, and the proced.ures• perormed in a System Review are described in the standards E. www,aicoaorplorsurnmaryr As required by the standards, engagements selected for review included engagements performed under the Government Auditing .Standards. In our opinion, the system of quality control for the accounting and auditing practice of Alberni, Caballero & Company t_LP in effect for the year ended November 30, 2011, has been suitably -designed w d'comp1ied with to provide the firm: with reasonable assurance of performing and reporting in rririfonnity with applicable professional standards in all material respects. Finns can receive a rating of pass, pass with defcictrcy(les} or fait. Alberni, Caballero & Company tip has r ceived a peer review rating ofpass. Infante & Company 1 INFANTE & COMPANY CERTIFIED IL D PUBLIC ACCOUNTANTS • BUSINESS CONSULTANTS Members of: American Institute of CPAs • Center for Audit Duality • Tex Division « Personal Financial Planning Section Florida Institute of CPAs National Associated Carded Public Atxounting Firms System Review Report May 6, 2009 Harrison Executive Centre - Suite 308 1930 Harrison Street Hollywood, Florida 33020 Telephone (954) 92248888 Fax (954) B22.8894 www.infanteccapa.corn iocpeslbnoi,com To the Partners of Alberni Caballero & Company, L.L.P. (Formerly known as Alberni Caballero & Castellanos, L.L.P.) 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 Alberni Caballero & Company, L.L.P. (Formerly known as Alberni Caballero & Castellanos, L.L.P.) (the firm) in effect for the year ended November 30, 2008, 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 hi 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 frm'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.ora/prsummary. As required by the standards, engagements selected for review included engagements performed under the Government Auditing Standards. In our opinion, the system, of quality control for the accounting and auditing practice of Alberni Caballero & Company, L.L.P. (Formerly known as Alberni Caballero & Castellanos, L.L.P.) in effect for the year ended November 30, 2008, 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. Alberni Caballero & Company, L.L.P. (Formerly known as Alberni Caballero & Castellanos, L.L.P.) has received a peer review rating ofpass. Uer14-1 6iinvio,,i_v Infante & Company APPENDIX B Proof of Insurance Page 69 1_ `� CERTIFICATE OF LIABILITY INSURANCE r D�i0 2/2° 01 �' THIS CERTIFICATE IS ISSUED AS A NATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY MEND, EXTEND OR ALTER THE CONVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTUTUE A CONTRACT BETWEEN THE ISSUING INSURERIS), AUTHORIZED REPRESENTATIVE OR. PRODUCER, AND THE CERTIFICATE HOLDER IMPORTANT: lithe certificate holder Is tin ADDITIONAL INSURED, the polloy(tes) must by endorsed. If SUBROGATION IS WAIVED, subject to the terms and. conditions of the poky, certain pollcfes may require an endorsement A statement an this certificate does not confer rights to the cortifeatQ hdaer In lieu of such endorsomontjs). PRODUCER Pace Professional Services, Ltd.e 585 Slowed Avenue, Suite 600 Garden City, NY 11530 C.ONTacr wee rrax` tMAIL �w "°x "DORM' INSURER(S) AFFORDING COVERAGE NALC I INStAa:RA; Swiss Re International SE iNsuRP..ri Marcum LIP SO Melville Park Road Melville, NY 11747 Ism e. Continental Casualty Company (CNA) rrnuRERD_ Interstate Fire and Casualty Company 1Novpp_ Ironshoro Specialty Insurance Co, frietikrAt. North River Insurance Company IIUL,REIt Vt COVERAGES CERTIFICATE NUMEIER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN MI IED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OH MAY PERTAIN, THE IfSUARNCEAFFORDED EY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERNS, EXCLUSIONS AND CONDITIONS Of SUCH POLICIES. L0A7$ SHOWN MY HAVE BEEN REDUCED BY PAID CLAIMS 1MSR LTR TYPE OFINSUWrNCE ADM. IIISR SUBR WJO POUGY NUMBER POLICY EFF (m i Jyrw) YOLrCY EXP (nmiiddtywy) LIMITS SIG—,EtJERAL LIABILITY I:1COkY10RCIAL GENc"RA7. LfABI1nY ❑❑ CLAIMS -MADE 0 OCCUR 0 ❑ GENT. AGGREGATE LIMIT APPLIES PER; ❑ POLICY 0 PROJECT 0 LDC NIA EACH OCCURANCE DAMAGEID BEST ue� �..) MED ESP on an wren) PERSONAL 5 AM/ tummy GEtMAL AGGREGATE PRODUCTS-CONPIOP AGG 5 5 5 $ $ 3 $ . AUTOMOBILE L(A8D..STY ❑ ANTAL/TO ❑ 041. DWNEO AIJTDO • scanouLeo HIREOA0103 QNDNWNtARA -OEoAuras ❑ UMBRELLA LIA a 0 OCCUR II UcEss Liar' Q CLAM -MADE • Oen Q RErurno s IVIA pL'Ss tnDU S11KiLET 11A1i BODILY INJURY (Prpawn) trCOILY INJURY vie*etl.l.y PROPEA❑ ,q ''E EACH OCCIIRANOE AGGREGATE EACHOCCURAN(:Q $ $ 5 S $ $ $ WORKERS COMPENSATION MD EMPLOYERS' i mein rTT ❑ .ja ❑ OThER $ 4NyeROPERIETORPARTNUil EXECUTIVE YM OFFTCERMEMBER EXLUDED7 0 Mandrlrol7 in NH) NIA 1NIA F.L. EACHACCIDE?LT r yea, diatom under , ELDk5Fl.56 - EA EMPLOYF�E 5 • DESCRIPTION OF OPEJUTIONS be low EL DISEASE -POLICY LINR 5 A i9 C 0 E Accountants Praressbnal Liability . Accountants PrafeasionalLability Ar-nuntanis Proressranel LIatiIIly Accountants Professional liability Accountants Professional Lialpllh. MH 716E6.2 AIX-1881245N ACX 1000031 001477201 667-100319.5 1N0112018 TD/D1/zoi9 1G/01/2013 1D1D112013 1Ld0112010 10'01/2014 1Ly01/2014 10'0tI2014 14/01/2014 10/01)2014 $10,000,00041O,000,000 $10,030,000V$10,000,000 Si 0.000,0001510,000,000 .4 5,000,000/5 5,000,003 $ 5,00000014 5,000,000 DE BCRIPTION OF OPERATIONS J LOCADONSr VEHICLES 1ANdd Ltach AGORD 101, iional Remarl.a Sawd W, if mcce pads is rowing)' CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE t E5 RIr3ED POLICIES 9E CANCELLED BEFORE THE EXPIRATION DATE 'THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROYI3I0M, AUrHOREE0 FLEPRESENTATIVE ,..,,...9"..........,..., ACORD 2$ (2010/05) 191313-20W0 ACORD CORPORATION. All nights reserved. The ACORD name and logo ere regislored marks of ACORD AC R CERTIFICATE OF LIABILITY INSURANCE DATE 110 000/ "TYY) 01/02/2014 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND coNrerts NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS Cl RTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLIMPR BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE 'ISSUING WNSURE S), AUTHORIZED REPO ESENTATIVE ♦5ft PRODUCER, AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder i1: an At7DmONAL 0 SUREi], the p0I"ky(ies) must be.endorsed. If SUBROGATION 15 YYAiVED, subject to the terms and conditions of the policy, certain poiicies may require an endorsement A st tternerrt on this certificate does not confer -rights to the certificate holder In Ike of suit enriorrement(s). PRODUCER Ruh SatoraatIaaal Nemtheast Limit d= LT 100 9tlunyside alvd woadbnry'NT 11797 atm-leen Has cum. LLP 10 l e1viile Park Road Melville. NTi 11747 COVERAGES C i.a#701104 CERTIFICATE NUMBER: TSokedeXt Hints mS16-a44-7600 T rb>: 51s-49E-4040 PHONE E.1tA11 ADDRESS:Sea=ginA,WOO gthtxiilltO:us tiosua.cam INSUReR p AFFORDING cAVi'?IAGE INSLMERA.:gtstfprd, Caanaity Insareara Cos02a.sy 015UNE00:Federa1 Insurance CompawY 114 St tilEgcAtrin City $it* Ip.ec iuc■ Cos 101SLHIER0; iNSUREA F : ^ ututeaeo_ AlAIC7 29424 20201 29459 THIS .IS TO CERTIFY THAT THE POLICIES OF INSURANCE USTED BELOW HAVE BEEN ISSUED 70 THE 0,ISUREn NAMED ABOVE FOR THE. POLICY PERJQO INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT CR OTHER DOCUMENT WITH RESPECT TO VIlf-EH 'MIS CERTIFICATE MAY BE ISSUED OR MAY FERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERms: EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS, • QaSR �" �[R ( - ��. TYPE oPIHSarw,Atc+= �Jrls�rm+ —"µ POL 1 Y:1'NLIM6Eit i�NtenorrYYi7y Liners A newet..LRAen.rrr : x :Z 315EMZH6954 01/41/a014 'el/el/20.z ••EACHOCCURRENCE ..,. 151.000, 000 i S S 000AM:RCIALCENERAL LIAE0LW? 4$ j�-- �t1O77E6 PR�%i15ESI y,eewaaaca] 1 s3a0.0a0 }9 . ._ CLAIMS.IVADE 1 X 1 OCCUR ; • MED F,XP (AT Orn wax") $10. 09 0 _ PERSONAL & ACV IN.AJRY S1.000, 000 •,i • , GENERALAODrtEGATE 4s2t000,000 GFM AGOREO ATE LIMIT APPLIES PER PRODUCTS " GOMPIOP AGG) S 2 ,11a0 000 0 ... OOUCY 1 FRO- 171 LCC _ - X- AUTOri30114WI,aLUTY -- 319EHSH5954 ( 01/02/2014 4Ile 1/301S D NED SINGLE LEAMT a.azairui• 51, 0990114 ; �� ANY AUTO I ALLOWNED _ so-icouLED AUTOS �� AUTO& l"� ..- Dew I L1 JflY (Per prison) ' S _ ,...,._....�.�.._. _ .�a..�.r.e....._.m.... •. BODILY {NARY Per afxxlen*5 WM-WNW _ 1 FARED AUTOS Athos ._. ' A 7Y DAMAGE 5 I . ' • _ 'S S Y' UNBRELU.UAE3 4 x—tCCCIR 179805972 01/4i/1014 01/01/203,s EACHDCCLIReeNce 1010000,000 • EXCESS LUtB . CLA1pR5•MAD'¢ t A. REGATE s10, 00D aoa i OED ; X ' RErP4TU H510, 000 : S •.... "maim coiiputSArtoN AND EMPLOYERS' LtAOLJTK Y/H ANY PR PMESOWPARTNERIMECOTIVE N 1 A 321CSLC5926 01/01/2014 '01491/2015 ` •Z t NICSTA7U. t+CrCr�I- i-- _ 10AI1S_...._ L�[l._` _. ^ •E.LSACHACCIDENT `S1.000,00.0 OPFICERAAMABER EXCL, r dO7 iNanda1 yin NFr} . ... + e L. DISEASE -EA EMPLOYI4 S l k 000.000 q . H7r7e undo D SGRIPfl0 QF OPERA71QH0below_. . -„_.. _... t E L DISEASE,POL)C{ LIMIT li S1, 0DD. 0 00 • • 0---,...,--,.wo ^rRATioN81 LOCAT OI14 / YEHIGLE9 (At:aw AGGRO totAseeleial Remsexs Soh++lulo. 0 want spaces ei requlrntl • • L` CERTIFICATE HOLDER CANCELLATION ACORD 25 (2010105) SHQULD ANY of THEABOVE DESCRWED POLICES BE CANCPI 1 Pr/ BJ=FQFtE THE EXPIRATION DATE , THEREOF, NOTICE WILL BE DELIVERIso IN Ac ontiVICE WITH THE POLICY PROI nsIan15, AUTHOR¢EO REPRESENTATIVE ryktLic @ 1988 2010 ACORD CORPORATION: All 11ghts resented. The ACORD name and Togo are registered marks of ACORD Dec47341330 Dertbeldee a i 303 • APPENDIX C Firm and Individual Licenses and Certifications Page 72 r STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY (850) 487-1395 240 NVV 76TH DRIVE, SUITE A GAINESVILLE FL 32607 MARCUM LLP 10 MELVILLE PARK ROAD MELVILLE NY 11747 Congratulations! With this license you become one of the nearly one million Floridians licensed by the Department of Business arid 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,rnyfloridalicenee,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 Department's initiatives. Our mission at the Department is: License EAciently, 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! ...*:• '' • •••• •• ...,'••••••••" '.••• "". :•••••':l!''lr.!•':•:'..:•!.."‘ •:••n••••••• ::. ••••••• ::.:•.t..v.i.••;i:::.:::::,.:.!.,!••:•.;,.. ....• ,.. STATE OF FLORIDA “Lti: ... ' DEPARTMENT OF BUSINESS AND • • i....., .„-:.....• PROFE§pg:ApEpu LATION i;).'.. . AD53249 i:i . • ...,. ..! MARCUM LLP. • ;Sii. ' - .. ...... •:•. '•'. '•J••! • • lit.:. ::,. is Lic.NsE:r.) under the tnavisions of Ch..471 •F • • 4e:: i., • Evralioi, fato ...on 21 pol.5 ' . .L13)2pepea3.1.97 • ' • '.N ... .. " ' :.I.'. : %.•:.:' .*j:': i,•':',i'.;:'...-?:.:.'-:::•:•.',.:1;•'...!Mi::v.Pei,i;f:r...rjp..;:.?.:•.", i:•: :1/4.:',..iii)ijiiii;i:•e.i;Mly.:11;Vp.,.':,' The Department of State is leading.the commemoration of Florida's 500th anniversary in 2013. _ For more information, please go to www.VivaFlorida.org. DETACH HERE . ... • . - . . . . RICK scan*, GOVERNOR KEN LAVVSON. SEGRETARY STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY uPEN:tie AllJM,t3ER Ar2162,49. t-, The ACCOUNTANCY CORPORATION . Named below IS LICENSED Underthe provision.s of Chapter 473 FS. Expiration. date: D.EC. 3.1, 2015 . • • • • . • MARCUM. LLF? • . • " • ..• • • . • 7•304 • 13pyti. •• -• . • • ‘.. • 3 . • . • . . • 3.3. .• ••• 3. • . . " • • • • . .• . . . " ••••' • • ••• • • : • '.•`••• ••••;'. • .." • • • • ,•. ISSUED: 12/29/2013 SEQ # 1.1312290001397 DISPLAY AS REQUIRED BY LAW STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY The ACCOUNTANCY PARTNERSHIP Named WrratIS LICENSED Under the provisions of Chapter 473 FS. Expiratbn the I EC 3 t, 2015 PLBERNI CABALLERO & COMPANY. LLP 4t 4 PONCE DE Lt;411.&LVD . SUITE 404. :...,. .... . CORAL GALES ., Ft. 3 14a • RICK SCOTr GOVERNOR ISSUED-. 1Of23/201.1 SEC) 0 L1 1 3O000836• KEN rAmsON SECRETARY DISPLAY AS REQUIRED BY LAW STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY • The ACCOUNTANCY CORPQRATIQN , • • :: • • Named below IS LICENSED . .• • • Under the provisions of Chapter' 47? ES. . • • • , • Expiration date.: DEC 31,.2015 . • • ...„ • t• •• . • •• •• •• • • '.•-MICHAE,L.D^PUTTERMAROAPA. • . ONE SE.,313aAYEADT61,,..FLODR,:;:„,,,,. ••••-••••• • • • .2 • • •-• • .."'"7",•••••••-•-•`""4"-**••••*.i4-"•""•• • • ••••• ••••••• • \ ..,••• • RICK SCOTT ISSUED: 09/22/2013 SEQ # L1309220001405 GOVERNOR DISPLAY AS REQUIRED BY LAW •• VIVA ROMA 5H. ,. ,„ .... ..v KEN LAWSON SECRETARY Potential Exception to the Indemnification Provision On Page 16 of 47, Section 1.42 Indemnification, provides language that could be subject to interpretation (last paragraph). "The Contractor agrees and recognizes that the City shall not be held liable or responsible for any claims which may result from any actions or omissions of the Contractor in which the City participated either through review or concurrence of the Contractor's actions. In reviewing, approving or rejecting any submissions by the Contractor or other acts of the Contractor, the City in no way assumes or shares any responsibility or liability of the Contractor or Sub -Contractor, under this Agreement." This language seems to allude to that the City of Miami is not responsible or shall not be held. liable for any omissions or actions related to the City's financial statements which cannot be the case as the City assumes full responsibility for the completeness and accuracy of their financial statements. This language could result in a lack of independence. As part of the audit, the City signs a management representation stating that they assume full responsibility for their financial statements. This language noted above did not appear to be part of the contract with their prior auditor. This clarification needs to be further addressed with the City. DBPR - FUTTERMAN, MICFML DAVID, Certified Public Accountant Page 1 of 1 Licensee Details Licensee Information Name: Main Address: County: License Mailing: LicenseLocation: County: License Information License Type: Rank: License Number: Status: Licensure Date: Expires: Special Qualifications FUTTERMAN, MICHAEL DAVID (Primary Name) (DBA Name) 1260 102ND ST • MIAMI Florida 33154 DADE 1260 102ND ST MIAMI FL 33154 DADE Certified Public Accountant CPA AC0021810 Current,Active 04/26/1990 12/31/2014 Qualification Effective View Related License Information View License Complaint 4:10:03 PM 3/29/2013 1940 North Monroe Street, Tallahassee FL 32399 :: Email: Customer Contact Center :: Customer Contact Center: 850.487.1395 The State of Florida Is an AA/EEO employer. Copvrinht 2007-2010 State of Florida. Privacy Staternent Under Florida law, email addresses are public records. If you do not want your email address released in response to a public -records request, do not send electronic mall to this entity. Instead, contact the office by phone or by traditional mail. If you have any questions, please contact B50.487.1395. 'Pursuant to Section 455.275(1), Florida Statutes, effective October 1, 2012, licensees licensed under Chapter 455, F.S. must provide the Department with an email address If they have one. The emalls provided may be used for official communication with the licensee. However email addresses are public record, If you do not wish to supply a personal address, please provide the Department with an email address which can be made available to the public Please see our Chapter 455 page to determine If you are affected by this change, bttps://www.myfloridalicense.com/LicenseDetail.asp?SID=&id=11455CC8F 14DB2C7646... 3/29/2013 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL RGULATIO BOARD OF ACCOUNTANCY 240 NW 76TH DRIVE, SUITE A GAINESVILLE FL 32607 CABALLERO,_ NESTOR 4649 PONCE DE LEON BLVD. SUITE 404 CORAL GABLES FL 33146 Dongratutationsi With this license you become one of the nearly are million Floridians licensed by the Department of Business and Professional Regulation. Our professionals and businesses range from architects to yacht brokers, from boxers to berbeque 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.myfloridallcensexont. Thera you can find more information about our divisions and the regulations that Impact you, subscribe to department newsletters and learn more about the Department's 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. end CenOretulatiOng on your new license! AU/ 6378456 DETACH HERE 0 487-1395 STATE OP FLORIDA. AC# ?Vs DEPARTMENT OF stismass AND PROFESSIONAL REOULATION Ac000376 *9119/12 128086893 CERT/PIED PUBLIC 'ACCOUNTANT CABALLERO NESTOR Is Li CEttEED under the provisions at 4%413 FT, ra4;ittotion do*, DSC 31, 2014 L12091901.0.S4 THIS DOCUMENT HAS A COLORED BACKOROUNO • MICROPRINTWO.UNIEMARK° PATE STATE OF FLORIDA 171P 711NT " TanpARBATHE xdRat 09/19/2012 128066893 AC0030370._A The CERTIFIED PUBLIC ACCOUNTANT ) Named below IS LICENSED ,thiglet the provisionof chaptex4 Expiration date: DEC 31 2014 CABAIILER0,, NESTOR 4649 PONCE DE LEON BLVD. SUITE 404 CORAL GABLES FL 33146 ED PAPER - S ONAL REGULATION SEQ# 1.901054 RICK SCOTT GOVERNOR DISPLAY AS REQUIRED BY LAW KEN LAWSON SECRETARY Licensing Portal - License Search Page 1 of 1 1 15:03 PM 5/2/.2014 Data Contained in Search Results Is Current As Of 05/02/2014 01:13 PM. Search Results Please see our glossary of terms for an explanation of the license status shown in these search results. For additional information, including any complaints or discipline, click on the name. License Type Certified Public Accountant Name Name Type ,CABALLERO, NESTOR Primary License Number/ Rank AC0030376 CPA Status/Expires Current, Active 12/31/2014 License Location Address*: 4649 PONCE DE LEON BLVD. CORAL GABLES, FL 33146 Main Address*: 4649 PONCE DE LEON BLVD, CORAL GABLES, FL 33146 * denotes. Main Address - This address is the Primary Address on file. Mailing Address - This is the address where the mall associated with a particular license will be sent (if different from the Main or License Location addresses). License Location Address - This is the address where the place of business Is physically located. 1940 North Monroe Street, TallahasseeyL 32,3 9 :; Email: •Customer. Contact Center :: Customer Contact Center; 850.487,1395 The State of Florida Is an AA/EEO employer. Copyright 2007-2010 States of Florida, Privacy.5tatemenI tinder Florida law, email addresses are public records. If you do not want your email address released in response to a public -records request, do not send electronic mail to this entity, Instead, contact the office by phone or by traditional mail. If you have any questions, please contact 850.487.1305.. *Pursuant to Section 455.275(1), Florida Statutes, effective October 1, 2012, licensees licensed under Chapter 455, F.S. must provide the Department with an email address if they have one, The emeils provided may be used for official communication with the licensee. however email addresses are nubile record, If you do trot wish to supply a personal address, please provide the Department with an email address whit!) can be made available th the public. Please see our Chapter 455 page to determine if you are affected by thin change. hltps://www.myfloridalicense.com/w111.asp?mode=2&search-=Name&SID=&brd=&typ=N 5/2/2014 THIS DOCUMENT HAS A COLORED BACKGROUND • MICROPRINTING • LINEMARK"' PATENTED PAPER S1ATE,,OF FLORIDA: , ;; `BUSNES'- AND PROFESSIONAL REGULATION pOARD OF;;,ACCOUNTANCY • SEQ# L12103001316 DATE BATCH NUMBER LICENSE NBR � t r}' 16/3b%20` 128136531. 2C003.2G47,;;F=L-. .'. he -C R r 'I D PuBLIC :tic x Named; :be1th I`S LTGENSE"`' Crnaer'' the:: datesior s o Expiration date n DEC•. $ ::BHERMAN;'BEIAS IA=: ':1450 E`:;I�AS SUITE ,.J50 ,,;:•::. FORT LAUDERDALE FL 33301 -".';- 341 r �: Ielt SCOTT, GOVERNOR UNTANTC ri KEN LAWSON SECRETARY DBPR - SHERMAN, BEILA, Certified Public Accountant Page 1 of 1 Licensee Details Licensee Information Name: Main Address: County: License Mailing: LicenseLocation: County: License Information License Type: Rank: License Number: Status: Licensure Date: Expires: Special Qualifications SHERMAN, BEILA (Primary Name) (DBA Name) 543 VIA FONTANA DRIVE UNIT 205 ALTAMONTE SPRINGS Florida 32714 SEMINOLE 450 E LAS OLAS BLVD SUITE 950 FORT LAUDERDALE FL 33301 ORANGE Certified Public Accountant CPA AC0032647 Current,Active 12/07/1999 12/31/2014 Qualification Effective View Related License Information View License Complaint 4:06:18 PM 8r3/2013 19,40 t orSh,_M.p ro . rAex, jatiahas$ee FL 32I92.:: Email: C,taStcQj i..on g-, ntef, :: Customer Contact Center: 850.487.1395 The State of Florida is an AA/EEO employer. Copyright 2007-2010 State of Florida. Privacy Statement Under Florida law, email addresses are public records, If you do not want your email address released in response to a public -records request, do not send electronic mall to this entity. Instead, contact the office by phone or by traditional mail. If you have any questions, please contact 050.487.1395, "Pursuant to Section 455.275(1), Florida Statutes, effective October 1, 2012, licensees licensed under Chapter 455, F.S. must provide the Department with an email address If they have one, The emalls provided may be used for official communication with the licensee. However email addresses are public record. If you do not wish to supply a personal address, please provide the Department with an email address whidi can be made available to the public. Please see our Chapter 455 page to determine if you are affected by this change. 1 • • -••• 4 • •• eittt• • ••• • • •• 4-'.'"•1 • • • • t'•.• ;t1- • • • . • ... --,: • ..• ... - . s.......,...--, ....,. .,...,.. ...:. ._•. .... :.........„._____L FEE iwic it)? RTorr ukritoRmAnom ' . . kr.. ,.. sii4t; =,,-.‘ • - i 6: ,...„.;.c4.4,.4.--:ai4,465:..‘is‘..r., ut$, •:. (4:,1 . :i...._..:,::,..:. ...,..: :, • ...: .: '• --. . . The. .University of the State•of.New York • .....- . I • - . : • . . • ., . . Education Department. Office of the Professions • • REGISTRATION CERTIFICATE • Do not accept a copy of this certificate , • ,tturabeH tk..3 . • • .g.:e—fiv...kVi:,;KVirrgeil,,,A, rA:i • .4,.._•••• • wko Ni! • • 141 IA\ 4.5 ft..1! • .1 4A..4 108910A • -- . • , Certificate 'Number:, 7677435 • ' • . • i • 4:-.;•.- ... ..; •.•• • '" • • • ' • '' •• .' e • ..- • - 4- '. • • -• ..:•• . .. - '. ••• • • ... • .• • '. : • . .. : . • ;:‘,'1.1 ... ._ . . ..:. . I, • " • ' • _ • ,. .... . .. • ' NAMIA ANTONIO . •.• • . .• . • 1041 POSTERS MILL RD BOYNTON BEACH , : FL 33436-0000 • :.. ' :.. •• .• . . , .: • • • • . • .. .. . e'va . *"..` •-;- 4i).t `,.. • - . . . `; ...." ..• • ` • t.1:, In New York gate.- throwIt 11/30/2914 a! a(4) . .. .0%.,.." • , ..\.•,, ---,•-• .6.; OF N -.- - ,... • -.• CERTIFIED. PUBLIC. ACCOUNTANT • ...: • :1? . •:_k.,:.?„..Z.„:%.7.;...,----.4:4.,,,..,f,- • Liczintriazotsrao-r . • ; . • ' : : • :•., • . • . • . • . • • • r`r, 07.Y A'etilA=;•;'7:.4 •O' " , • • .. r • • • km." • • . • CI 4"" 4 si., ' • ' - tel Eckrfpay. Exurwgec • MIKIS510NER 0 • . . • • • , • • , • • • ' .. ..• . . , . . .. . • • . . . . .. ••• . DEpitTy toMMISSIONAii .... ' . . •• • • • ?OR, THE PkOPE3SIONS .... . . ... •.. . . • - -" Thir armmeitt is vatief may if i kat not etrirr4 mote onil address ore rorriet ft hay not been twirled Oh and ix: : .• ,•T. ,.:•A . oriernal ? not cop!): To yerib-jhw this .irgi;nonion res7ifirine 4 wily ot for mow infinnation pkose flt. • ' • , :,.• • . • - • • . , •-• www.op.nAt..geo. c. 0.1.: • frt 141..t•,01r,114-1' eneratedl, C•Li, C-4 0;2 cc> tei.#1.44 4'4 04 'CI .4044 • ' THIS DOCUMENT HAG A COLORED BACKGROUND • NIICROPRINTING • LINEMARW" PATENTED PAPER 3,,,...,:„. iAk: sTATD.F. FLoNPk: „'M: • • A13.11,144 t"i7;BUSiNESS 'AND PROFESSIONAL '.i‘REMILATION ;•,.4 4: • , ,-.:BOATOLI 0 Og,',',AC cOUNT.,WCY.. ,.:: 2: ' '' ('... .t SEQ# 1.1121013 00 0 8 - .1 , • ... ' ... ,.,........;,.. . z-VA::: ''r:-.,,;.0.%-.7.Q.-.:•.> , ..:::::...,* •:,:? .. ,.n:4!, BATCHNUMBER LICENSE NBR„P'-',--CtiE ,g ... • .• , . • , , • • oy„,,,, ,EA• "1,f *a. ?..t-Pr.,- ., g•40Ing::"k', 1 DISPLAY AS REQUIRED SVLA KEN LAWSON SECRETARY • Licensing Portal - License Search Page 1 of 1 1:0042 PM 5/23/2012 Data Contained In Search Results Is Current As Of 05/23/2012 /2:59 PM. Search Results Please see our glossary of terms for an explanation of the license status shown in these search results. For additional information, including any complaints or discipline, click on the name. License License Type Name Number/ Status/Expires Rank Certified Public Accountant Name Type LLERENA, ENRIOUE Primary AC42193 Current, Active CPA 12/31/2012 Main Address*: 9617 NW 7 CIRCLE #333 FORT LAUDERDALE, FL 33324 * denotes Main Address - This address is the Primary Address on File. Mailing Address - This is the address where the mall associated with a particular license will be sent (if different from the Main or License Location addresses). License Location Address - This is the address where the place of business is physically located, 1940 North Monroe Street, Tallahassee FL. 32399 :: Email: Customer Contact Center :: Customer. Contact Center: 850,487.1395 The State or Florida is an AA/EEO employer. Coravilettt 2007-2010 State of Florida. Privacy Statement Under Florida leu, a-rnail addresses are public records. If you do not want your e-mail address released In response to a public -records request, do not send electronic mail to tnis entity. Instead, contact the office by ohone or by traditional mail. If you have any questions, please contact 850.487.1395_ htfnc-/Iwww mvflnricialirense.cnm/w111.asn?mode=2&search=Name&SID=&bid=&tyi = 5/23/20I2 f• Comratigationsi With this license •you became tirte of the nearly one million Ftondiens licensed by the Department of Business and Professional Regulation. Dun, fessiot als and bUsinesSeS range from architects to Yacht brokers, from trokeTs to barbeque'ttaerarsts, and they keep Florida's economy strung. • E• r day,like wen .te Improve the way we do business in order to serve you better. Fcritibtirrisition about our services, please log onto wrrw.myflarldallcerxse•.cnm. • • ? reyoti can -and more information about our divisions and the regulations that i : sact woe, subsotibe to department newsletters and team more shout the DeFkarOterit's Inittativ. .tom s st tho Department is: License E.#licientty, Regulate Fairly. Ws serve you better so that you can serve your customers. ; „rsc>rsrsr tb��s :. a..:�: a 3r C fdt business to Florida, andngrstula€ials on your new license! =_ate eara;' !bar~ : 31�... 3l7:� s z �s . . 4D5iJ"sLxH` itAt i 4C iE7iN HAS�'A rtle 3T Tel .NU '.:•:i= fir: t• e-.*x; 'trjwiv ,Did • * ?de! P I�VOW r & f 6 wigs Ct• F,L f{itiA . •: ' ACi : t U t lea Qtrf.. . At4544.0' �;;;:;`';.i :12O 49A.. 5 :r l7 iElT0 s3i 1. pispbAiy AS f may I a y •I.. +t.: DBPR ARIZA, MOISES DAVID, Certified Public Accountant Page 1 of 1 12•55.:54 PM 3124/2014 Licensee Details Licensee Information Name: Main Address: County: License Mailing; LicenseLocation: License Information License Type: Rank: License Number: Status- Licensure Date: Expires: Special Qualifications ARIZA, MOISES DAVID (Primary Name) (DBA flame) 8821 SW 4TH LANE MIAMI Florida 33174 DADE Certified Public Accountant CPA AC45440 Current,Active 12/21/2012 12/31/2015 Qualification Effective View Related License Information View License Complaint 1949 North Monroe Street, Tallahassee FL 32399 :: Email: Customer Contact Center :: Customer Contact Center' 850.487,1395 The State of Florida Is an AA/EE0 employer Copyright 2007.2010 State of Florida. Privacy Statement Under Florida law, email addresses are public records, If you do not want your email address released in response to a public -records request, do not send eiecironic mail to this entity, Instead, contact the office by phone or by traditional mail. If you have any questions, please contact 850.487 1395. *Pursuant to Section 455.275(1), Florida Statutes, effective October 1, 2022, licensees licensed under Chapter 455, F.S. must provide the Department with an email address If they have one, The emails provided may be used for official ccnimunication with the licensee. However erne!' addresses are public record. If you do not wish to supply a personal address, please provide the Department with an email address which can be made available to the public. Please see our Chapter 45.5 page to determine if you ere affected by this change. }rung•//www mvfinrirlaiir.Qn rnrn/l .irPncPTlatail acn`7,R,TTI=hriri=f 111409P1tt'APTIFA57011PPtiCAP4r4R7t 1ntDli1it MIAMF� COUNTY miamidade.gov March 12, 2012 Mr. Nestor Caballero ALBERNI CABALLERO & COMPANY, LLP 4649 Ponce De Leon Blvd, #404 Coral Gables, FL 33146-0000 Dear Mr. Caballero: Sustainability, Planning and Economic Enhancement Department 111 NW 1 Street, 19th Floor Miami, Florida 33128 T 305-375-3111 F 305-375-3160 CERT. NO: 14425 Approval Date: 03/31/2012 - SBE Expiration Date: 03/31/2015 ANNUAL ANNIVERSARY: 03/31/2013 Small Business Development (SBD), a division of Sustainability, Planning and Economic Enhancement Department (SPEED) has completed the review of your application and attachments submitted for certification. Your firm is officially certified as a Small Business Enterprise (SBE) in accordance with section 2-8.1.1.1.1 of the Code of Miami Dade County. This certification is valid for three years provided there are no changes rendering your firm ineligible for certification. You are required to submit a "Continuing Eligibility Affidavit" annually with specific supporting documents on or before your Anniversary Date as listed above. You will be notified in advance of your firm's Anniversary Date. Failure to comply with the said responsibilities may result in immediate action to decertify your firm. Every three years you will receive a full recertification review that may include an onsite investigation; SBD will also notify you accordingly. If at any time during the certification period, there is a material change in your firm, including, but not limited to ownership, officers, Director, scope of work being performed, daily operations, affiliations with other business (es) or physical location of the firm, you must notify this office in writing within (30) days. Notification should include supporting documentation. You will receive timely instructions from this office as to how you should proceed, if necessary. Your company is certified in the following categories as listed below, affording you the opportunity to bid and participate on contracts with small business measures. Please note that the categories listed are very general and are used only to assist our customers in searching the directory for certified firms to meet contract needs. The directory for all certified firms can be accessed on the Miami -Dade County SPEED website http://www.miamidade.gov/sba Thank you for doing business with Miami Dade County. ely, Shen McGriff, Director Business Opportunity Support Services Small Business Development Division ustainability, Planning and Economic Enhancement Department CATEGORIES: (Your firm may bid or participate on contracts only under these categories) ACCOUNTING SERVICES (NOT OTHERWISE CLASSIFIED) (SBE) ACCOUNTWG/AUDmNG/BUDGET CONSULTING (SBE) GOVERNMENTAL CONSUL1NG (SBE) ACCOUNTING/FINANCIAL: BOOKKEEPING, BILLING AND INVOICING, BUDGETING, PAYROLL, TA)ES, ETC. (SBE) DHDA0020 v20111026 Mr. Caballero ALBERNI CABALLERO & COMPANY, LLP March 12, 2012 Cert No: 14425 c: Jacob Wilson Jr., Certification Specialist Veronica Clark, SPEED, SBD DBDR0020 v20111026 APPENDIX D Legal Matters Page 90 Marcum Legal Matters as of April 2014 1. Diedrich K. Holtkamp, et al. v. Marcum & Kliegman LLP (an insured claim) This suit alleged the non -issuance of K-1s to limited partners (non -audit related) and settled for a nominal amount. 2. Able Energy, Inc. and Gregory D. Frost v. Marcum & Kliegman LLP et al. (an insured claim) This suit claims overcharging for audit services rendered as a result of a client's questionable disclosure of information (audit related to a public company). At this point in time we cannot project an outcome to this matter but we expect to pay $0 on this claim. 3. Kestenbaum & Mark, et al. v. James T. Ashe and Marcum & Kliegman LLP. (an insured claim) This suit alleges negligence in their representation in an IRS tax investigation (non -audit related). At this point in time we cannot project an outcome to this matter but we expect to pay $0 on this claim. 4. The Diversified Group v. Marcum & Kliegman LLP (an insured claim) This suit alleges faulty advice in connection with a tax savings plan (non -audit related). At this point in time we cannot project an outcome to this matter but we expect to pay $0 on this claim. 5. Natrol/Plethico v Marcum LLP (an insured claim). This suit alleges negligence in the performance of audit. At this point in time we cannot project an outcome to this matter but we expect to pay $0 on this claim. There is no filed litigation, claim, action, arbitration proceeding or investigation or other legal or administrative matter that is, to Marcum's knowledge, material to Marcum's business. There is no litigation or proceedings whereby, during the past three (3) years, a court or any administrative agency has ruled against the firm or any of its professional staff or subcontractors in any matter related to professional activities. There is no litigation or legal matters pending with our sub -contractor, Alberni, Caballero & Company, LLP. APPENDIX E Potential Exception to the Indemnification Provision Language; Section 1.42 of the Request for Proposal Page 92