Loading...
HomeMy WebLinkAboutRFP ResponseSanson, Kl ne, Jacomino, Tandoc & Gamma, LLP Jr LIABLE OF CONTENTS Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP Pages Transmittal Letter / Executive Summary 1-2 Proposer's and Proposer's Key Personnel Qualifications and Past Performance Organizational Structure and History 3 Firm Partners and Professionals 3-4 Relevant Audit Experience 4-5 Proposed Engagement Team 5 Experience and Qualifications 5-8 References 9 CPA Licenses and Memberships 10 Continuing Professional Education Program 10 Information and Assistance Expected from the Trust 10 Independence 11 Debarred or Suspended 11 Terminated Contracts 11 Litigation 11 Bankruptcies 11 Location of Office 11 Proposer's Technical Qualifications Audit Approach and Work Plan 12-15 Tentative Timetable 15 Approach to Developing Information for Management Letters 15-16 Recent, Current and Projected Workload 16 Quality Control Review Program 16 Desk Reviews 16 Understanding of the Services Required 16-17 Current Developments of GASB and FASB Pronouncements 17 Use of Subcontractors 18 Impediment to Independence 18 Fees for Services 19 Appendix A: Certifications and Other Required Documents Bayfront Park Management Trust — RFP No. 496326 CERTI"IED PUBLIC ACCOUNTANTS & CONSULTANTS Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP 5805 Blue Lagoon Drive I Suite 220 I Miami, FL 33126 Tel: (305) 269-8633 I Fax: (305) 265-0652 I www.skjtg-cpa,com July 13, 2015 Evaluation Committee Bayfront Park Management Trust 301 North Biscayne Blvd. Miami, Florida 33132 RE: Proposal to Provide External Auditing Services Dear Members of the Evaluation Committee: Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP ("SKJT&G") is pleased to have the opportunity to respond to Request for Proposals ("RFP") No. 496326 to provide external auditing services to Bayfront Park Management Trust (the "Trust"), for the fiscal years ending September 30, 2015, 2016 and 2017, with an option to renew for two (2) additional one (1) year periods. SKJT&G is committed once` again to provide value-added and quality service to the Trust, combining the responsive personal contact associated with a smaller firm and the sophisticated professional resources of a larger firm. As leaders in servicing non-profit and governmental entities, SKJT&G is fully qualified to provide external auditing services to the Trust. We strive to exceed the expectations of our clients, with a commitment to total quality service. Translating our experience and resources into effective and efficient value-added services to the Trust is our highest priority, which is why we believe we are best suited to, once again, be part of your professional team. The task that the Trust faces in selecting a firm to provide external auditing services is not an easy one. There are obvious similarities among the firms submitting proposals, but there are also distinguishing characteristics. Our goal in this proposal is to present those characteristics that distinguish us as the team best suited to serve the Trust. Understanding of Your Needs Based on our knowledge and experience gained in serving similar sized governmental and non-profit entities, as well as the knowledge and experience that we've gained as the external auditors of the Trust for fiscal years 2008 through 2012, SKJT&G has a clear understanding and ability to provide the scope of services requested in the RFP, as more thoroughly described throughout this proposal. As a result, selecting us as your auditors would not only eliminate any learning curve in performing the audit, but also allows us to provide you with a more competitive audit fee. With our team, the Trust can be assured that we are committed to performing the work efficiently and effectively. 1 Committed To Serving Government SKJT&G has been in the business of serving governmental and non-profit entities for over 37 years. The firm strives to maintain its objectives in the rendering of services of the highest quality with local firm attentiveness to all of its governmental and non-profit clients. In our commitment to provide quality services to our public sector clients, in 2003 the firm hired me, Richie Tandoc, as a Partner, specializing in the government and non-profit industry. I'm a former Senior Manager with KPMG's Healthcare and Public Sector Practice, with over 22 years of experience in the government and non-profit industry. During my career at KPMG, and more recently at SKJT&G, I have provided audit services to many small and large governmental entities, including counties, cities, school districts, special districts and special purpose governments. (See more information on SKJT&G's proposed engagement team in the "Experience and Qualifications" section of the proposal). All of SKJT&G's professionals, from entry-level accountants to partners, are trained to understand the issues and meet the needs of governmental and non-profit entities. Our professionals bring a comprehensive understanding of the issues that face governmental and non-profit entities as well as "bench strength" at all levels, allowing us to respond swiftly and effectively to your evolving needs. Responsiveness SKJT&G prides itself in responding to the needs of its clients. This responsiveness is not only demonstrated by being able to meet the deadlines for the audit, but in responding to other requests as well. The proposed engagement team will consist of the same individuals that have served the Trust during our last stint as your external auditors, and which will provide the expertise required by the Trust. Our ability to be responsive will be enhanced by the open communications and good working relationship that we have developed with management in years past. We look forward to hearing from you and to continuing to work with the Trust. As a Partner of SKJT&G, I am the Trust's primary contact and I am duly authorized to make representations for the firm. I can be reached directly at (305) 269-8633, Ext. 8016 or at richie.tandoc@skjtg-cpa.com. Sincerely(' \ Sanson, I�(line, Jacomino, Tandoc & Gamarra, LLP Richie/C. Tandoc Partner 2 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP OrganizationafStructure and History Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP was originally founded and incorporated as Sanson, Kline, Jacomino & Company, LLP ("SKJ") on January 7, 1978 by two former Partners and one former Manager of Alexander Grant & Co. (currently known as Grant Thornton, LLP). On October 1, 1998, SKJ became a limited liability partnership. The firm has provided professional services to numerous governmental, not -for -profit and commercial entities for over 37 years, including accounting/bookkeeping, auditing, consulting, tax, and other assurance and advisory services. On October 1, 2011, the firm changed its name to Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP ("SKJT&G"). The firm's assurance and advisory practice (which consists of accounting/bookkeeping, auditing, consulting and other advisory services) is composed 55% of engagements in the governmental and not -for -profit industry, and 45% in the commercial industry, including real estate developing, construction, banking, manufacturing, import/export, retail, and services fields. SKJT&G is licensed and authorized, as a CPA firm to perform audit, accounting, and tax services, by the State of Florida Board of Accountancy and is in good standing with the State Board. SKJT&G is a member of the American Institute of Certified Public Accountants Private Companies Division for CPA firms. All of our partners and all eligible employees are members of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants, and are in good standing with such Institutes. The firm is also in good standing to practice before the Securities and Exchange Commission. SKJT&G is a Minority Business Enterprise and/or Small Business Enterprise certified by numerous governmental agencies, including Miami -Dade County, Florida, Miami -Dade County Public Schools, and the State of Florida. In addition, two of the members on the proposed engagement team are Certified Fraud Examiners, and are members of the Association of Certified Fraud Examiners. SKJT&G is currently the auditor for a number of the City of Miami's component units, including all three of the Miami Community Redevelopment Agencies, the Miami Sports & Exhibition Authority, the Coconut Grove Business Improvement District, and the Wynwood Business Improvement District, as well as the subcontract auditors for the City of Miami, Florida audit engagement. In addition, we were the auditors for the Bayfront Park Management Trust for fiscal years ending September 30, 2008 through 2012. Firm Partners and crrofessionars Years of Experience Tony Jacomino, Tax & Managing Partner 51 Richie Tandoc, Assurance Partner 22 Alfredo Jacomino, Tax Partner 21 Orlando Gamarra, Consulting & Advisory Partner 18 In addition to the Partners above, the Firm consists of 12 other professional staff composed of: Bayfront Park Management Trust — REP No.496326 3 Sli Stinson, Kline, Jacomino, Tandoc & Gamarra, LLP Total No. Directors / Managers 3 Supervisors / Seniors 5 Staff 4 For a list of the professional staff that will be assigned to the audit of the Trust, see page 6, and the Firm's policy for substituting personnel assigned to the audit of the Trust, see page 7. Relevant Audit Experience To succeed in today's competitive and highly complex marketplace, a company's business acumen and professional talents must be distinguished from the masses. SKJT&G takes pride in its ability to provide clients with the array of experience and the depth of resources they require. Our professionals have substantial experience in auditing non-profit and governmental entities in accordance with auditing standards generally accepted in the United States of America, Audits of Non -Profit Organizations, Government Auditing Standards and OMB Circular A-133 (single audits), Audits of States, Local Governments, and Non -Profit Organizations, and Chapter 10.550 Rules of the Auditor General, and the preparation of financial statements in accordance with such standards, and FASB pronouncements, statements and interpretations, where applicable. Our experience comes from having audited the Trust in the past and entities similar to the Trust. The following is a select list of governmental and non-profit audit and consulting clients that SKJT&G has been engaged in the last three years: Governmental and Non -Profit Audits • Alzheimer's Association SE Fl. Chapter, Inc. • Action Community Agency, Inc. ■ Bayfront Park Management Trust ■ Big Five Club, Inc. ■ Boynton Beach Community Red. Agency ■ Catholic Charities Legal Services, Inc. • City of Hialeah, Florida ■ City of Miami, Florida • City of Miami Community Red. Agencies • Concert Association of Florida, Inc. ■ First Call For Help of Broward, Inc. • Foundation for Human Rights in Cuba, Inc. • Hialeah Technology Center, Inc. • Kristi House, Inc. • Latin Chamber of Commerce of USA, Inc. • Miami Coalition for the Homeless, Inc. ■ Miami -Dade County Aviation Department ■ Miami -Dade County General Segment • Miami -Dade Expressway Authority • Miami -Dade Transit • Miami Shores / Barry University Charter School ■ Miami Sports & Exhibition Authority • North Miami Community Red. Agency • School Board of Miami -Dade County ■ School District of Palm Beach County Single Audits / Grant Audits ■ Action Community Agency, Inc. • Boynton Beach Community Red. Agency • Catholic Charities Legal Services, Inc. • City of Coral Springs, Florida ■ City of Hialeah, Florida • City of Miami, Florida ■ Foundation for Human Rights in Cuba, Inc. ■ Kristi House, Inc. 4 ■ Latin Chamber of Commerce of USA, Inc. ■ Miami -Dade County Aviation Department • Miami -Dade County General Segment • Miami -Dade Expressway Authority • Miami -Dade Transit • Public Health Trust ■ School Board of Miami -Dade County ■ School District of Palm Beach County swim Bayfront Park Management Trust — REP No.496326 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP Governmental and. Non -Profit Consulting • Children's Services Council of Broward ■ City of Coral Springs, Florida • City of Hialeah, Florida • City of Miami, Florida ■ City of Miami Beach, Florida • City of Miami Southeast Overtown Park West Community Redevelopment Agency ■ City of Tamarac, Florida ■ Cuban Museum, Inc. • Florida Department of Revenue • Florida Department of Environ. Protection • Miami -Dade Expressway Authority ■ Miami -Dade Taxicab Lottery • Miami -Dade Transit ■ Spiral Tech Elementary Charter School ■ Town of Surfside, Florida Proposed Engagement Team The following organization chart outlines the proposed engagement team that will be assigned to the audit engagement: Bayfront Park Management Trust Experience and Qualifications As previously mentioned, our professionals have substantial experience in auditing governmental and non-profit entities in accordance with auditing standards generally accepted in the United States of America, Audits of Nonprofit Organizations, Government Auditing Standards, Chapter 10.550, Rules of the Auditor General, all GASB and FASB pronouncements, statements and interpretations, where applicable. In addition, we have many years of experience in auditing Federal and State grants in accordance with OMB Circular A-133 (Federal Single Audit) and Section 215,97, Florida Statutes (Florida Single Audit). Bayfront Park Management Trust — RFP No, 496326 Sanson, Kline, Jacomino, Tancloc & Ganuarra, LLP In order to fulfill our commitment to the Trust, we have structured an engagement team that will be responsive to your needs, consisting of professionals with the skills and experience in dealing with the issues you face. This proposed engagement team consists of the same individuals that have served the Trust in previous years. This is a proven team, and to utilize this team eliminates any learning curve in performing the audit. In addition, the level of service provided by our Engagement Partner and Manager is unmatched. The Engagement Partner will be at the client site, and in contact with finance personnel, at a minimum, two days a week. The Engagement Manager will be at the client site, at a minimum, three days a week. The proposed engagement team consists of the following supervisory professionals: Client Service and Engagement Partner Richie Tandoc The client service and engagement partner will serve as the primary contact for senior management to ensure open and effective channels of communication. The partner's responsibilities include keeping abreast of important developments concerning issues that would directly affect the Trust; coordinating the total services to be provided through continuous communication with members of the engagement team; determining the content of the reports to be issued; ascertaining that professional standards have been complied with throughout the engagement; and directing and controlling the efforts of all personnel assigned to the engagement. Richie's involvement in the audit approximates 13 % of the total budgeted hours. Engagement Manager - Jenny Orantes T'he engagement manager will be in -charge of the engagement and be responsible for developing and coordinating the overall audit work plan under the direction of the engagement partner. Her responsibilities also include supervising staff personnel, coordinating the day-to-day audit fieldwork, and performing an in-depth review of all pertinent work papers and reports. She will also be responsible for coordinating the completion of the audit and the preparation of the reports; and for bringing to the attention of the partner any technical and sensitive issues, and potential solutions to such. Jenny's involvement in the audit approximates 20% of the total budgeted hours. Engagement Supervisor - Danae Vasco f'he engagement supervisor will assist in the planning of the audit; allocate audit tasks to staff and direct the day-to-day performance of the plan; will be under the supervision of the engagement manager and partner; supervise audit staff and oversee daily progress of the engagement; communicate with the manager regarding the progress of the audit; review all workpapers and reports; and identify any technical issues to be discussed with the manager. Danae's involvement in the audit approximates 40% of the total budgeted hours. All members of the engagement team will be available at any time to assist the Trust with accounting, .auditing, and/or financial reporting questions, or any other questions within the scope of the audit ,engagement. Questions that are not within the scope of the audit, and require a substantial amount of -time to research and resolve, would fall within the additional services category, and would therefore be charged at the rates detailed in the "Additional Professional Services" section of this proposal. 6 Bayfront Park Management Trust — RFP No.496326 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP Substituting Personnel We will make every effort to ensure that the supervisory staff assigned to the audit of the Trust will be assigned to the engagement from year to year. If that is not possible, due to promotions or resignation of staff, then we will ensure that the newly assigned supervisory staff will have the adequate qualifications to provide the required services to the Trust. Resumes See resumes for each proposed team member following. Richie C. Tandoc, CPA, CFE Client Service and Engagement Partner Race/Ethnicity: Asian - Gender: Male - EEO Classification: Professional Professional Experience Richie has over 22 years of experience serving non-profit and governmental clients. He is the partner -in -charge of SKJT&G's assurance and advisory practice, with a specialization in the non-profit and governmental industry. Richie is a former Senior Manager with KPMG in their Public Sector Practice. He has extensive accounting, auditing and consulting experience, including: financial statement audits, reviews and compilations; business process/internal control analysis; federal and state grant audits; special products implementation; operational and efficiency audits; and compliance audits. Richie is also the firm's technical resource partner responsible for keeping the firm's professionals up-to-date on accounting, auditing and reporting standards, as well as the human resources partner and the liaison for the firm's governmental subcontract work with the national, regional, and other local accounting firms. Richie has dedicated most of his public accounting career to serving the governmental and non-profit industry. A select list of Richie's non-profit and governmental clients includes the following: • Bayfront Park Management Trust • Boynton Beach Community Redevelopment Agency • Catholic Charities Legal Services, Inc. ■ Children's Services Council of Broward County • City of Coral Springs, Florida ■ City of Hialeah, Florida • City of Miami Midtown Community Red. Agency • City of Miami Omni Community Red. Agency ■ City of Miami Southeast Overtown Park West CRA • City of Miami, Florida • City of Miami Beach, Florida • City of Pompano Beach, Florida • City of Tamarac, Florida • Coconut Grove Business Improvement District Professional and Business Affiliations Certified Public Accountant, Florida Certified Fraud Examiner, ACFE Member, Association of Certified Fraud Examiners Member, Florida Institute of Certified Public Accountants Member, American Institute of Certified Public Accountants Education Master of Accounting, Florida International University Bachelor of Accounting, Florida International University 7 • Florida International University Foundation ■ Miami -Dade County General Segment • Miami -Dade County Clerk of the Courts • Miami -Dade County Solid Waste Management • Miami -Dade County Transit • Miami -Dade Expressway Authority ■ Miami Department of Off -Street Parking • Miami Sports and Exhibition Authority ■ North Miami Community Redevelopment Agency ■ Palm Beach County Workforce Development Board • School Board of Miami -Dade County • School District of Palm Beach County ■ Town of Surfside, Florida • Wynwood Business Improvement District Member, Government Finance Officers Association Member, GFOA Special Review Com. - CAFR Program Member, Florida Government Finance Officers Assoc. Member, FIU Alumni Association Continuing Professional Education 20 credits in government accounting and auditing subjects in the past year Bayfront Park Management Trust — RFP No.496326 KJJ T`-'4.� Jenny Orantes, CFE Engagement Manager Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP Race/Ethnicity: Hispanic - Gender: Female - EEO Classification: Professional Professional Experience Jenny has over 16 years of public accounting, auditing and consulting experience, including serving governmental and non- profit entities, She has spent her entire public accounting career at SKJT&G, rising to the level of Manager. She has substantial experience in auditing governmental entities in accordance with Government Auditing Standards, auditing federal and state grants in accordance with OMB Circular A-133 and Rules of the Auditor General of the State of Florida, respectively. Jenny's experience includes serving the following governmental and not -for -profit clients: ■ Bayfront Park Management Trust • Big Five Club, Inc. • Boynton Beach Community Red. Agency ■ Children's Services Council of Broward County • City of Miami Midtown Community Red. Agency ■ City of Miami Omni Community Red. Agency • City of Miami Southeast Overtown Park West Community Redevelopment Agency • City of Miami, Florida ■ Coconut Grove Business Improvement District • Concert Association of Florida, Inc. ■ Florida Dept, of Environmental Protection Education and Professional Affiliations Bachelor of Accounting, Florida Int'l University Certified Fraud Examiner, ACFE Member, Association of Certified Fraud Examiners Candidate for CPA Exam (2 parts passed) Danae Vasco Engagement Supervisor • Kristi House, Inc. • Latin Chamber of Commerce of USA, Inc. • Miami -Dade County Housing Agency ■ Miami -Dade County General Segment • Miami -Dade County Aviation Department ■ Miami Beach Housing Authority ■ Miami Beach Latin Chamber of Commerce • School Board of Miami -Dade County, Florida • School District of Palm Beach County, Florida ■ Southwest Social Services ■ Wynwood Business Improvement District Continuing Professional Education 20 credits in government accounting and auditing - subjects in the past year Race/Ethnicity: Hispanic - Gender: Female - EEO Classification: Professional Professional Experience Danae has over 14 years of public accounting, auditing and consulting experience, including serving governmental and non- profit entities, She has substantial experience in analyzing and evaluating internal controls over all major financial processes of non-profit and government entities, auditing governmental entities in accordance with Government Auditing Standards, auditing federal and state grants in accordance with OMB Circular A-133 and Rules of the Auditor General of the State of Florida, respectively, and performing compliance reviews. Danae's experience includes serving the following governmental and non-profit clients: • Bayfront Park Management Trust • Boynton Beach Community Redevelopment District ■ Catholic Charities Legal Services, Inc. ■ City of Miami Midtown Community Red. Agency ■ City of Miami Omni Community Red. Agency ■ City of Miami Southeast Overtown Park West CRA ■ City of Miami, Florida Education Bachelor of Accounting, Florida International University 8 • First Call for Help of Broward, Inc. ■ Hialeah Technology, Inc. ■ Latin Chamber of Commerce of USA, Inc. ■ Miami -Dade County Aviation Department • Miami -Dade County General Segment ■ Public Health Trust • School District of Palm Beach County, Florida Continuing Professional Education 20 credits in government accounting and auditing subjects in the past year Bayfront Park Management Trust — RIP No.496326 1 Stinson, Kline, Jacomino, Tandoc & Canzurra, LLP ,.. References { The following is a select list of engagements similar in scope of services (i.e. annual financial statement audits) to those requested in the RFP, with applicable contact information, performed within the last five years: Bayfront Park Management Trust (a Component Unit of the City of Miami) i Value of contract: Average $21,000 per year Term: Fiscal years 2008 - 2012 Contact: Timothy Schmand, Executive Director Tel: (305) 358-7550 Address: 301 N. Biscayne Blvd., Miami FL 33132 Boynton Beach CRA (a Component Unit of the City of Boynton Beach) Value of contract: Average $20,000 per year Term: Fiscal year 2008 - Present Contact: Susan Harris, Director of Finance j Tel: (561) 737-3256, Ext. 203 Address: 710 N. Federal Hwy., Boynton Beach, FL 33435 City of Miami Southeast Overtown Park West CRA (a Component Unit of the City of Miami) Value of contract: Average $25,000 per year Term: Fiscal years 2003 - Present Contact: Miguel Valentin, Finance Officer Tel: (305) 679-6810 Address: 1490 NW 3 Ave., Suite 105, Miami, FL 33136 Coconut Grove Business Improvement District (a Component Unit of the city of Miami) Value of contract: $10,000 per year Term: Fiscal years 2013 - Present Contact: Manny Gonzalez, Executive Director Tel: (305) 461-5506 Address: 3390 Mary St., #130, Miami, FL 33133 Miami Sports & Exhibition Authority (a Component Unit of the city of Miami) Value of contract: $10,000 per year j.. Term: Fiscal years 2009 - Present Contact: Lourdes Blanco, Executive Director Tel: (305) 798-2160 Address: 3500 Pan American Dr., Miami, FL 33133 Wynwood Business Improvement District (a Component Unit of the city of Miami) Value of contract: $10,000 per year Tenn: Fiscal years 2014 - Present Contact: Tom Curitore, Executive Director Tel: (786) 615-8828 Address: 310 NW 26 St., Suite 1, Miami, FL 33127 Bayfront Park Nlanagenlent Trust — RFP No.496326 9 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP CPA Licenses andfMem6erships As mentioned previously, SKJT&G is licensed as a CPA firm by the State of Florida Board of Accountancy and is and has been in good standing with the State Board. In addition, a number of the firm's professionals are also certified by the State of Florida Board of Accountancy, and are all in good standing with the State Board. See copies of state licenses for all individual CPA's assigned to the audit engagement, as well as for the firm, at Appendix A. In addition, as previously mentioned SKJT&G is a member of the American Institute of Certified Public Accountants Private Companies Division for CPA firms. All of our partners and all eligible employees are members of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants, and are in good standing with such Institutes. See copies of memberships to such Institutes at Appendix A. Continuing Professional Education Program SKJT&G requires that all professional staff receive, at a minimum, 40 hours of continuing professional education (CPE) each year, which includes governmental and non-profit accounting and auditing courses. Consequently, we provide in-house seminars, as well as attend externally provided seminars and conferences in order to meet the required 40 hours of CPE. As a result, our professional staff meet the CPE requirements promulgated by the American Institute of Certified Public Accountants (which requires 80 hours in a two year period, with at least 20 hours in accounting and auditing courses and 4 hours in ethics). In addition, as part of SKJT&G's CPE requirement, all professional staff attend a minimum of 20 hours of government accounting and auditing CPE training each year. This allows our professional staff to exceed the CPE requirements promulgated by Government Auditing Standards (which requires 24 hours of government accounting and auditing courses within a two-year period). SKJT&G affirms that all professionals assigned to the audit engagement have properly maintained the CPE requirements in accordance with the rules promulgated by the American Institute of Certified Public Accountants and Government Auditing Standards. Information andAssistance Expectedfrom the trust Information and assistance from the Trust is essential in completing the audit in a timely manner. The following are the circumstances in which we will require such information and assistance: • Preparation of any confirmations required; • Preparation of / delivering all reports and schedules (in a timely manner) requested; ■ Interviews with staff regarding internal controls over major financial processes; • Answers to questions / inquiries / requests made by audit staff during the course of the audit; • Explanations for significant variances during our fluctuation analysis testing; and ■ Assistance in obtaining information for the disclosures in the financial statements. Without the full assistance and support from Trust staff, completion of the audit may be delayed. Therefore, we require the full cooperation of management and staff to ensure the timely completion of the audit and issuance of all reports. 10 Bayfront Park Management Trust — RFP No.496326 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP Independence SKJT&G has a thorough understanding of the standards of auditor independence, pursuant to Florida Statute 473.315 and Florida Administrative Order 61H1-21.001. We confirm that SKJT&G and all of its professionals, including those on the engagement team, are independent of the Trust, the City of Miami, and any other related agencies, as defined by generally accepted auditing standards issued by the American Institute of Certified Public Accountants, the U.S. General Accounting Office's, Government Auditing Standards, Florida Statute 473.315 and Florida Administrative Order 61H1- 21.001, and will continue to maintain our independence during the entire term of our contract. De6arred or Suspended SKJT&G, its Partners and employees have never been debarred or suspended from proposing by any governmental entity during the last five years. Terminated Contracts SKJT&G has never been terminated from a contract by a contracting entity. Litigation There is no prior or pending litigation or proceedings, either civil or criminal, involving a governmental agency or which may affect the performance of the services to be rendered to the Trust, in which SKJT&G or any of its employees is or has been involved within the past five years. Bankruptcies There have been no bankruptcy petitions, either voluntary or involuntary, which have been filed by or against SKJT&G during the past three years. Location of Office The address of SKJT&G's office from which the Trust's audit will be conducted is 5805 Blue Lagoon Drive, Suite 220, Miami, Florida 33126. All SKJT&G professionals that will be utilized on the audit engagement are located at this office. We guarantee that the Firrn's office, during the entire length of our contract with the Trust, will be located in Miami -Dade County. Bayfront Park Management Trust— RFP No,496326 11 1 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP .Audit Approach and WorkgCan SKJT&G's approach to the audit involves measured planning of all activities and identifying key people and significant audit issues early in the process. We believe that this approach represents a common sense, understanding and basic method for conducting an efficient engagement. A significant element of this approach will be the team of professionals highly experienced in servicing entities of siinilar size and complexity to the Trust. SKJT&G's standard practice is to have the entire audit team, including the Partners, Managers, and Supervisors/Seniors, involved in all aspects of the audit process. Being a small firm, SKJT&G prides itself on the exceptional client service we provide and the amount of involvement of our Partner and Managers in our audit and consulting engagements. Our Partner and Managers are generally at the client's site, at a minimum, two to three times a week. In order to perform the audit in the most efficient and effective manner possible, the audit, and involvement of each professional, will be conducted in the following four phases: BAYFRONT PARK MANAGEMENT TRUST Phase I — Audit Planning The initial phase of the audit will be planning. Adequate planning ensures prompt completion of all auditing and reporting requirements and close coordination to provide our services in the most efficient basis. The initial stage will commence at the earliest available time following our selection as auditors. SKJT&G will make a detailed preliminary review of the financial and accounting operations. This will allow the auditors to identify at an early stage any known accounting, auditing or reporting matters to be resolved and anticipate any potential problems from any planned, pending or probable developments. Furthermore, SKJT&G will be able to assign audit priorities and arrange for assistance and coordination with finance personnel and the audit team. Bayfront Park Management Trust — RFP No.496326 12 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP After a preliminary review of the financial and accounting operations, SKJT&G will perform a pre - field work conference with management. The purpose of the conference is to: (1) (2) (3) Establish meeting dates with management and finance personnel to discuss the planned audit approach and engagement status. Schedule dates and priorities for client assistance areas. Identify potential problems and audit priorities. After the meeting with management, SKJT&G will define the specific engagement objectives. In defining the objectives unique to each assignment, SKJT&G will review the reliability and integrity of existing systems and preliminarily assess how these procedures and policies meet the engagement objectives (see section following for a detail on internal controls). SKJT&G will then use this accumulated information concerning systems controls to develop a specific approach. SKJT&G understands that audit work is a matter of professional judgment about procedures that are most appropriate for the situation. The firm stresses maintaining that professional judgment when developing audit programs by focusing on what the professional requirements recommend. Upon completion of developing audit programs, timetables will be re -visited with management to ensure the documents, schedules and reports requested will be provided within stated time frames and assist with monitoring the audit team's progress, Phase II — Interim Fieldwork Interim fieldwork is generally performed before year-end or soon thereafter, and is usually done in conjunction with the planning phase, including, but not limited to: Compliance with Laws, Rules andRegulations One of the primary differences between auditing in the public and private sectors is the requirement to test for compliance with laws and regulations and other matters in public sector audits. SKJT&G will plan the audit, where applicable to detect instances of noncompliance with certain provisions of laws, regulations, contract and grants, that could have a material effect on the financial statements. The approach to audit effectiveness for compliance with laws and regulations, include, but are not limited to: ■ Discussing compliance requirements with finance personnel and the legal staff to identify areas of particular concern; • Identifying applicable laws, regulations, contracts, grant agreements, etc; ■ Documenting procedures and controls used to monitor compliance; • Identifying events that could lead to instances of potential noncompliance, such as staffing, employee benefits, operating hours, personnel policies, etc; • Reviewing minutes of the board meetings; and ■ Performing additional specific testing as deemed appropriate. Review of Internal Controls and Test of Transactions During this phase, SKJT&G will focus on establishing and documenting a thorough understanding of internal accounting controls that relate directly to the accuracy and reliability of financial information. The internal controls of the Trust are the foundation for the entire audit, and involves an extensive understanding and evaluation. The results of this evaluation will influence the nature, timing and extent of our substantive audit procedures. 13 Bayfront Park Management Trust — REP No, 496326 Sanson, Kline, Jaco,nino, Tandoc & Gamarra, LLP This approach ensures that we achieve maximum efficiency and provides valuable feedback to management regarding the effectiveness of controls being relied upon throughout the year. A thorough understanding of the internal control structure of an organization is critical in planning our audit procedures and providing useful comments and recommendations to the Trust. Our evaluation of internal control includes considering the entity's risk assessment process, the control environment, information and communication systems, and general monitoring and control activities, and then considering the effectiveness of internal control as a whole. We will obtain our understanding of each of the aforementioned elements through the following procedures: ■ Meeting with individual finance personnel to discuss the significant classes of transactions; ■ Reviewing internal assessments of internal controls, if any; ■ Reviewing predecessor auditor workpapers; and ■ Reviewing internal policies and procedures manuals, if any. More specifically, we will obtain an understanding of the design of relevant policies and procedures, determine whether such procedures have been placed in operation, and assess preliminary control risk. As noted above, this review begins by holding interviews with applicable finance personnel and evaluating your internal system and accounting documentation. Based on our interviews, and once we've obtained our understanding, we will then prepare our internal control document for each of the significant classes of transactions. This internal control review will satisfy both the requirement of Generally Accepted Auditing Standards, as well as Government Auditing Standards. Upon completion of our evaluation and test of controls, we will develop preliminary management comments and internal control recommendations, if any. Audit programs will be prepared for the final phase of our audit work that will focus on the areas of audit risk determined in part by the level of reliance placed on internal controls. Thereafter, we expect to begin detailed testing of transactions. Detail tests shall encompass the cash receipts/revenue cycle, disbursements/expenditure cycle, and payroll cycle, at a minimum, to determine compliance with internal controls, guidelines and contractual obligations previously documented. Further, we will begin certain analytical procedures (such as fluctuation analysis, budget versus actual, and ratio analysis, where applicable). Upon the completion of our interim fieldwork, we will review our preliminary findings, if any, with both management and other appropriate staff members, to avert surprises at year-end. Phase III — Year-end Substantive Testing We will begin year-end substantive testing immediately upon the availability of finance personnel and the year-end closing. Based upon the results of interim testing, we will finalize our detailed tests of account balances. Audit programs will be updated to recognize and address concerns that arise during interim testing. Also during this phase, we will complete our analytical review of operations and assess the impact of confirmation procedures. Draft financial statements will be reviewed to ensure compliance with generally accepted accounting principles. Also, we will initiate discussions with management and obtain responses regarding our audit findings and internal control and operational recommendations, if any, and discuss all audit adjustments with the appropriate personnel. Bayfront Park Management Trust — RFP No.496326 14 Sanson, Kline, Jacomtno, Tandoc & Gamarra, LLP Phase IV— Exit Conference and Reporting The audit concludes with an exit conference conducted with representatives of finance, management and Audit Committee, if applicable. We will formalize responses to all audit findings and internal control recommendations, if any. We will discuss all significant matters noted during our examination with required action plans for corrections. We will then issue final reports, with the approval of management, including our audit reports on the financial statements, the reports on internal control over financial reporting and on compliance and other matters, and the management letter with recommendations to increase efficiency, improve internal controls and enhance operations. Tentative' imeta6fe With management's approval, our preliminary timetable for the audit is as follows: Key Phase Aug/Sep Oct Nov Dec Audit Planning Interim Procedures Year -End Substantive Testing Exit Conference and Draft Reports Final Reports Once the timetable is agreed and finalized with management of the Trust, SKJT&G will be committed to completing the audit within the dates specified. ,Approach to Developing Information for Management Letters The proposed engagement team chosen to serve you has been structured to bring about the most responsive service available. A key aspect of our audit approach requires on -going communication with management, and if necessary, the Finance/Audit Committee, before and during the engagement to ensure that management's needs are met timely and that our efforts are coordinated properly. Our intention is to hold periodic meetings with key management personnel that focus on the progress of the engagement, discussion of our findings, and any other special requirements. Prior to issuing our audit report and management letter, if any, we will have an exit conference with management, as described in our audit approach above. At this point there would be no surprises because most of the issues identified will have already been discussed with management, either formally or informally, prior to the exit conference. More specifically, our approach to communicating potential audit adjustments and management letter observations and recommendations is to always involve management and those involved in the processes at hand. Our management letter will include: any significant deficiencies and/or material weaknesses identified in the internal control structure, accompanied by our recommendations to correct such deficiencies; suggestions relating to policy and/or procedure modifications or enhancements; and suggestions for enhancing and maintaining the quality and efficiency of operations. [n all cases, we will take the following steps in communicating potential audit adjustments and management letter observations and recommendations: 15 Bayfront Park Management Trust — RFP No.496326 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP Step 1 — Define and understand the potential adjustment / finding through discussion with management and through other verified information. Step 2 — Make an initial assessment on the impact to the financial statements, if any. Step 3 — If the impact has significant potential, gather research, which may include the entity's research and rationale for their position; gather additional details; draw on common practices within other similar entities; and utilize SKJT&G Alliance experts, if necessary. Step 4 — Discuss with management the preferred position and rationale. Step 5 — Agree on the resolution of the issue and record the adjustment, where applicable, and/or inclusion of the observation and recommendation in the management letter. Recent, Current and Trojected Workload SKJT&G's recent and current governmental projects (and those that would be assigned to the Trust's audit engagement), either as primary contractors or subcontractors, include Miami -Dade County General Segment (FYE 9/30), City of Miami, Florida (FYE 9/30), Miami Community Redevelopment Agencies (FYE 9/30), Coconut Grove Business hnprovement District (FYE 9/30), Miami Sports & Exhibition Authority (FYE 9/30), Wynwood Business Improvement District (FYE 9/30) and Boynton Beach Community Redevelopment Agency (FYE 9/30). We do not project obtaining any additional governmental engagements in the next year. We believe that we have sufficient resources to serve our current governmental clients, as well as to serve the Trust, if we are awarded the contract, Quality Control' Review Trogram To provide ourselves and the public we serve with reasonable assurance that we are providing quality professional services, SKJT&G has developed a system of quality control. As part of this process, a quality control peer review is performed every three years by an independent CPA firm. A copy of SKJT&G's two most recent external peer review reports can be found at Appendix A to this proposal. The scope of the reviews included governmental, non-profit and for -profit engagements. Desk Reviews SKJT&G has not had any federal or state desk reviews of its audits during the past three years. 'Understanding of the Services Required SKJT&G has the ability and capability to perform all the services required in the RFP, based on our experience in auditing the Trust and similar entities, and our knowledge of and expertise in state and local government accounting and auditing. In addition, we would be available to perform any additional work upon the Trust's request and approval by the Board. We understand the scope of work includes an audit of the Trust's basic financial statements, in accordance with: • Chapter 79,589, Florida Statutes, and any other applicable Florida Statutes; ■ Regulations of the State of Florida Department of Banking and Finance; • Rules of the Auditor General of the State of Florida, Chapters 10.550 and 10.600; Bayfront Park Management Trust — RFP No.496326 16 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP • Audits of State and Local Governments, issued by the AICPA; • Generally Accepted Auditing Standards; • Government Auditing Standards, issued by the Comptroller General of the United States; • Generally Accepted Governmental Accounting Standards; • State of Florida Auditor General Selection Guidelines, 2007, prepared by the Auditor Selection tax force; and • Any other applicable federal, state, local regulations or professional guidance not specifically listed above, which may be adopted by this organization in the future. In addition, if a Federal and/or State Single Audit is ever required (which it has not been in the past), such audits will also be performed in accordance with: ■ OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations ■ United States Single Audit Act of 1984, and Amendments of 1996; • State of Florida Single Audit Act; • Executive Office of the Governor's State Projects Compliance Supplement; and • Chapter 10.550, Rules of the Auditor General. Our understanding of the reports to be issued for the Trust, include: ■ Report on the fair presentation of the basic financial statements; ■ Report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements; and ■ Management letter in accordance with "Rules of the Auditor General". Current Developments of C.AS1 ancf FASB Pronouncements In addition to the CPE courses that our professional staff attends throughout the year, there are a multitude of other venues we use in order to keep abreast of current accounting, auditing, and financial reporting issues, including: ■ An annual subscription to the GASB to receive Statements, Interpretations, Implementation Guides, and Technical Bulletins. ■ An annual subscription to the FASB to receive Accounting Standards Updates, Implementation Guides, Exposure Drafts, Discussion Memorandums, Invitations to Comment, Proposed Technical Bulletins, and research reports. • An annual subscription to the AICPA to receive Professional Standards, Technical Practice Aids, Audit and Accounting Guides, Audit Risk Alerts, and Accounting Trends and Techniques. • An annual subscription to the PPC to receive the most current audit and accounting programs for governmental entities. • Annual membership to the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants • Annual membership to the Government Finance Officers Association and the Florida Government Finance Officers Association (and attendance to annual conferences). As we become aware of any accounting, auditing, or financial reporting issues relevant to our clients, we will immediately inform our clients to better assist them in adopting, implementing, and/or resolving such issues. 17 Bayfront Park Management Trust — RFP No.496326 Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP aViON Vse of Su5contractors We do not plan on utilizing any subcontractors in auditing the Trust. Impediment to Independence There are no impediments to independence to report to the Trust, as defined by the AICPA, of the Firm and/or employees assigned to the audit engagement. 18 Bayfront Park Management Trust — RFP No.496326 ►'1 ' Sanson, Kline, Jaconaino, Tandoc & Gamarra, LLP Based on the discussion at the Pre -bid conference meeting held on Tuesday, June 30, 2015, we were instructed to have a separate price proposal apart from our technical proposal. As such, a separate document titled "Price Proposal" has been submitted along with this technical proposal. Please refer to the separate Price Proposal document for a detail of the proposed annual audit fees for the fiscal years ending September 30, 2015, 2016, 2017, 2018 and 2019, in addition to our proposed single hourly rate for any additional professional services, 19 Bayfront Park Management Trust — RFP No.496326 Certification Statement Please quote on this form, if applicable, net prices for the item(s) listed. Return signed original and retain a copy for your files. Prices should include all costs, including transportation to destination. The City reserves the right to accept or reject all or any part of this submission. Prices should be firm for a minimum of 180 days following the time set for closing of the submissions. In the event of errors in extension of totals, the unit prices shall govern in determining the quoted prices. We (I) certify that we have read your solicitation, completed the necessary documents, and propose to furnish and deliver, F.O.B. DESTINATION, the items or services specified herein. The undersigned hereby certifies that neither the contractual party nor any of its principal owners or personnel have been convicted of any of the violations, or debarred or suspended as set in section 18-107 or Ordinance No. 12271. All exceptions to this submission have been documented in the section below (refer to paragraph and section). EXCEPTIONS: We (I) certify that any and all information contained in this submission is true; and we (I) further certify that this submission is made without prior understanding, agreement, or connection with any corporation, firm, or person submitting a submission for the same materials, supplies, equipment, or service, and is in all respects fair and without collusion or fraud. We (I) agree to abide by all terms and conditions of this solicitation and certify that I am authorized to sign this submission for the submitter. Please print the following and sign your name: SUPPLIER NAME. Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP ADDRESS 5805 Blue Lagoon Drive, Suite 220, Miami, FL 33126 PHONE: (305) 269-8633 FAX (305) 265-0652 EMAIL: richie.tandoc@sk,'t•-c.a.com BEEPER. SIGNED BY. TITLE: Partner DATE• 7/13/2015 FAILURE TO COMPLETE, SIGN, AND RETURN THIS FORM SHALL DISOUALIFY THIS BID. Page 2 of 43 Certifications Legal Name of Finn: Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP Address; City, State, Zip, Contact Name, Contact Title, Phone, Fax, Email: 5805 Blue Lagoon Dr., Suite 220, Miami, FL 33126, Contact: Richie C. Tandoc, Partner Te1:305-269-8633, Fax:305-265-0652, Email: richie.tandoc@skjtg-cpa.com Entity Type: Partnership, Sole Proprietorship, Corporation, etc. Limited Liability Partnership Year Established: 1978 Office Location: City of Miami, Miami -Dade County, or Other Miami -Dade County Occupational License Number: 1843417 Occupational License Issuing Agency: Miami -Dade County Occupational License Expiration Date: September 30, 2015 Will Subcontractor(s) be used? (Yes or No) No Please list and acknowledge all addendum/addenda received. List the addendum/addenda number and date of receipt (i.e. Addendum No. 1, 7/1/07). If no addendum/addenda was/were issued, please insert N/A. Addendum No. 1, 6/24/157 Addendum No. 2, 7/7/15 If Bidder has a Local Office, as defined under Chapter 18/Articlle III, Section 18-73 of the City Code, has Bidder filled out, notarized, and included with its bid response the "City of Miami Local Office Certification" form? YES OR NO? (The City of Miami Local Office Certification form is located in the Oracle Sourcing system ("iSupplier"), under the Header/Notes and Attachments Section of this solicitation) N/A Page 3 of 43 Line: 1 Description: Please disregard this ➢inne item and refer to Sections 2i7, Fee Proposal and 3.4, Fees for Services of the Specifications/Scope of Work section of this RFP. Category: 94620-00 Unit of Measure: Year Unit Price: $ Number of Units: 1 Total: $ Page 4 of 43 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY The ACCOUNTANCYCORPORATION Named below IS LICENSED Under the provisions of Chapter 473 FS. Expiration date: DEC 31, 2015 SANSON, KLINE, JACOMINO, TANDOC GAMARRA, LLP SKJT&G, 5805 BLUE LAGOON DRIVE; SUITE 220 MIAMI ,. " FL'33126 RICK SCOTT GOVERNOR RICK SCOTT, GOVERNOR AC0031252 ISSUElq: 10/08/2013 SEQ# L1310080001224 ISPLAYAS REQUIRED BY LAW • STATE OF FLORIDA DEPARTMENT -CIF BUSINESS AND PROFESSIONAL REGULATO BOARD OF ACCOUNTANCY The CERTIFIED PUBLIC ACCOUNTANT Named below IS LICENSED Under the provisions"of Chapter 473 FS. Expiration date: DEC 31, 2016 TANDOC, RICHELLE CHAN 8500 SW 87 TERRACE, MIAMI m FL, :33143 y „, ISSUED: 09/29/2014 �-w DISPLAYAS REQUIRED BY LAW DIVA E� i iij 50U- KEN LAWSON SECRETARY KEN LAWSON, SECRETARY 101 SEQ# L1409290001053 ANS 1 N, Pri 111 eric E°tifiec kot Instit c cc certifies th.it te t t nts has fulfilled all the established requirements of eligibiliLy by demonstrating the necessary qualifications and is a member of the AICPA and the AICPA's e omits razes George Willie, CPA, PFF, CGF214; Chair, PCPS Executive Corrunittee ractice Section (PCPS) - Member Si ice 01/014980 m Barry Melaneon, CPA, President a CEO LLP ErNetJIvI ern b ers/Memb erProfi I e,a spx El NBA - NationalBasket, Yahoo' Wa Facebook FOXNews,com SKJT&G %- Shape Lovers PAC I Educational Foundation I Advertise I Classifieds I News I Chapters , FICPA Connect (List_a s0 uU�¢vm u rloridainsttute of CPAs Hama Lo-a Out Csrl Contact Us Help/ 3n& Map You Ase Have: Home >btember Re_sources> July Account > Member & Firm Ritedories> Ivleather Profile I My Account Membership Renewal (Pay Duos) Personal Profile Update Professional Profile Update My Current Registrations My Order History I C7y EZMaterials CPE Tracker 0lember&Firm Directories FJCPAConnect My Legislators • Update Usernamel Password • Quick CPE Search • Select CPE Location SeleclCredit-ype P cmarks ViToc n `s Member Profile Lei Shars Printer Friendly THY Size: NA A A Richelle C. Tandoc 0. chord by Gargle BACK t1E'JY SEARCH Company Sanson, Kiln e,Jacomino,Tandoc & Gomorra, LLP 5005 Blue Lagoon Dr Ste 220 hliaml , FL 331210-2066 General Business. PubllcAccounting Phone 305-260--13633 Fax 305-265-0652 E-mail Click here to contact Member Position Partner/Shareholder/Owner Chapter South Dade Committeeffask Force/Sections Position Active Peer Reviewers Member Firm Administrators Group Member Scale & Local Government Group Member erNet✓f rlembers/MemberProfile.aspx NBA -National Basket,,, °. Yahool Facebook [1 FOXNews,com 40SKJT&G Z-0Shape Lovers C'' I 1 ci, Search Advsrllse With Us *In PAC I Educational Foundation I Advertise 1 Classifieds I flews I Chapters I FICPA Connect (List...) Flodda Institute of CPAs You Aye Here: Home> Member Rescurxs tit lily Account > Member & Finn Dhactories.lember Profile ily Account Membership Renewal (Pay Dues) Personal Profile Update Professional Profile Update _ My Current Registrations Order History My EZMaterlals CPE Tracker Member & Firm Directories FICPA Connect My Legislators .. ... Update Usernamel Password Quick CPE Search Soled CPE Location Select Credit Type Member Profile �Share Printer Friendly Text She: ®A A A Jenny Orantes ',Home Lca Dui I CaJ Contact Its I Help ./Site Map I lily Arrcunt r Search Po ser=o br Go:glo BACK tiExt SEARCH Company Denson, Kline, Jacomino, Tandoc 5 Gamarra, LLP 5605 Blue Lagoon Dr5te 220 Miami , FL 33126-2056 General Business Public Accounting Phone 305-269-8633 Fax 305-265-0652 E-mail Click here to contact Member Position Other Chapter Miami -Downtown Advertise With Us LTIFE ::7=117:) NFANITE 6A COMPANY ITFD PUE3LIC ACCOUNTANTS 0 SUSINSS CONSULTANTS Members of: American institute of CPAs Center for Audit Quality o Tax Division 0 Personal Financial Planning Section Florida Institute of CPAs National Ac-sociated Certified Public Accounting Firms System Review Report August 17, 2010 Harrison Executive Centre Suite SOS em Harrison Street Hollywood, Florida 02020 Telephone (954) 5220855 Fox (5EW) 922-8004 www,infanteompa.com corn To The Partners Sanson, Kline, Jacomino Company, LLP and the Peer Review Committee of the Florida Institute of Certified Public Accountants We have reviewed the system of quality control for the accounting and auditing practice of Sanson, Kline, Jacomino & Company, LLP (the firm) in effect for the year ended May 31, 2010. Our peer review was conducted in accordance with the Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the American Institute of Certified Public Accountants. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the standards at wwvv.aic a.or / rsummar As required by the standards, engagements selected for review included an engagement performed under the Government Auditing Standards. In our opinion, the system of quality control for the accounting and auditing practice of Sanson, Kline, Jacomino & Company, LLP in effect for the year ended May 31, 2010, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with deficiency(ies) or fail. Sanson, Kline, Jacomino & Company, LLP has received a peer review rating ofpass. Infante & Company INFANTE S: COMPANY CERTIFIED PUBLIC ACCOUNTANTS 0 BUSINESS CONSULTANTS Members of: American Institute of CPAs o Center for Audit Quality o Employee Benefit Plan Audit Duality Center o Governmental Audit Duality Center O Private Companies Practice Section o Tax Division Florida Institute of CPAs System Review Report ecernber 6, 2013 Harrison Executive Centre 1930 Harrison Street Suite 308 Hollywood, Florida 33020 Telephone (954) 922-8866 Fax (954) 922-8884 www,infantecocpa.com To the Partners of Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP and the Peer Review Committee of the Florida Institute of Certified Public Accountants We have reviewed the system of quality control for the accounting and auditing practice of Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP (the firm) in effect for the year ended May 31, 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. As a part of our peer review, we considered reviews by regulatory entities, if applicable, in determining the nature and extent of our procedures. The firm is responsible for designing a system of quality control and complying with it to provide the firm with reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance therewith based on our review. The nature, objectives, scope, limitations of, and the procedures performed in a System Review are described in the • standards at www. ai cp a. org/prsummary. As required by the standards, engagements selected for review included an engagement performed under the Government Auditing Standards and an audit of an employee benefit plan. We noted the following deficiencies during our review: 1. Deficiency - The firm's quality control policies and procedures requires that the person responsible for assigning personnel to engagements consider specialized industry experience or expertise when assigning all levels of personnel to engagements. We noted that the firm relies primarily on the engagement partner's background and knowledge and does not give adequate consideration to the complexity or other requirements of the engagement when assigning other engagement personnel. We noted an instance in which certain personnel did not have sufficient experience, expertise, or training in the areas assigned to them. In addition, the firm's System of Quality Control requires that any ERISA engagement performed by the firm requires EQCR by an experienced reviewer prior to the issuance of the financial statements. The firm had an audit of an employee benefit plan subject to the Employee Retirement Income Security Act of 1974 (ERISA), which met the above criteria. As a result of the lack of industry experience and lack of EQCR, the firm did not properly report on the financial statement in this specialized industry. Recommendation -The firm should revise its quality control policies and procedures to require that personnel assigned to engagements have sufficient experience or expertise to perform the work assigned to them. When it is necessary to assign a person who does not have sufficient experience or expertise to perform a key role on an engagement, the engagement partner should be required to document how the engagement team will compensate for this lack of experience or expertise. 2. Deficiency - The firm's quality control policies and procedures require that audit engagements in specialized industries be properly planned and executed in accordance with generally accepted auditing standards. We noted one limited scope employee benefit plan audit, where due to lack of familiarity of the engagement team with the specialized nature of the engagement and financial statement presentation and disclosure was incomplete. The firm issued a qualified opinion auditors' report when they should have issued a disclaimer opinion auditors' report. In addition, the plan did not disclose the amount and disposition of forfeited non -vested accounts to be used to reduce employer contributions, did not disclose fully benefit responsive contract investments, did not disclose party - in -interest transactions and the required fair value disclosures (levels 1 - 3) for investments, and therefore, a tabular format was not presented. The firm has advised that it will correct the auditors' report and re -issue the financial statements to its client and the related governing body. Recommendation -The film should designate a partner to be responsible for all employee benefit plan audits. That partner should attend training on performing such audits and be responsible for directing all benefit plan audits. In our opinion, except for the deficiencies described above, the system of quality control for the accounting and auditing practice of Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP in effect for the year ended May 31, 2013, has been suitably designed and complied with to provide the firm with reasonable assurance of performing and reporting in confonniity with applicable professional standards in all material respects. Firms can receive a rating of pass, pass with dejiciency(ies) or fail. Sanson, Kline, Jaconii_no, Tandoc Gamarra, LLP has received a peer review rating of pass with deficiencies. Infante Company r Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP (1NJOTE PROPOSAL CProposed:Audit Fees Our proposed fees reflect and include the objectives and scope of services requested in the RFP. SKJT&G's policy is to estimate fees at amounts that are highly competitive, but will also enable us to respond to your needs and provide the quality of service that an organization the size and complexity of the Trust requires. In general, our fees are based on the level of experience and training of the individuals assigned, as detailed in our proposal. SKJT&G's proposed flat fees for the audit of the basic financial statements of the Trust are as follows. Year Ending Sept. 30, Proposed Fee 2015 $ 18,000 2016 18,500 2017 19,000 2018 19,000 2019 19,000 A detailed fee schedule, itemizing all costs, including hourly rates, number of hours anticipated, job classification of each proposed team member, and each specific service corresponding to each team member, are as follows: FISCAL YEAR ENDING SEPTEMBER 30, 2015 Phase Estimated Hours Partner Senior / Manaeer Supervisor Staff Grand Total Audit Planning 2 4 4 - 10 Interim Procedures 2 4 24 24 54 Year-end Substantive Testing 16 20 40 40 116 Exit Conferences and Reporting 6 6 2 - 14 Totals Standard Billing Rates Fees at Standard Rates 26 34 70 64 $ 195 $ 150 $ 130 $ 105 194 $ 5,070 $ 5,100 $ 9,100 $ 6,720 $ 25,990 Start-up Costs Other Costs, including administrative, travel,etc. Discount Total Proposed Fee FISCAL YEAR ENDING SEPTEMBER 30, 2016 (7,990) $ 18,000 Phase Estimated Hours Partner Manaeer Senior / Supervisor Staff Grand Total Audit Planning 2 4 4 - 10 Interim Procedures 2 4 24 24 54 Year-end Substantive Testing 16 20 40 40 116 Exit Conferences and Reporting 6 6 2 - 14 Totals Standard Billing Rates Fees at Standard Rates 26 34 70 64 195 $ 150 $ 130 $ 105 194 $ 5,070 $ 5,100 $ 9,100 $ 6,720 $ 25,990 Start-up Costs Other Costs, including administrative, travel,etc. Discount (7,490) Total Proposed Fee $ 18,500 *14111.1.1.01,1en. leeway Bayfront Park Management Trust — RFP No.496326 CVEYV Sanson, Kline, Jacomino, Tandoc & Gamarra, LLP FISCAL YEAR ENDING SEPTEMBER 30, 2017 Phase Estimated Ilours Partner Manager Senior / Supervisor Staff Grand Total Audit Planning 2 4 4 - 10 Interim Procedures 2 4 24 24 54 Year-end Substantive Testing 16 20 40 40 116 Exit Conferences and Reporting 6 6 2 - 14 Totals Standard Billing Rates Fees at Standard Rates 26 34 70 64 195 $ 150 $ 130 $ 105 194 $ 5,070 $ 5,100 $ 9,100 $ 6,720 $ 25,990 Start-up Costs Other Costs, including administrative, travel,etc. Discount Total Proposed Fee FISCAL YEAR ENDING SEPTEMBER 30, 2018 (OPTIONAL YEAR 1) (6,990) $ 19,000 Phase Estimated Hours Partner Manager Senior / Supervisor Staff Grand Total Audit Planning 2 4 4 - 10 Interim Procedures 2 4 24 24 54 Year-end Substantive Testing 16 20 40 40 116 Exit Conferences and Reporting 6 6 2 - 14 Totals Standard Billing Rates Fees at Standard Rates 26 34 70 64 195 $ 150 $ 130 $ 105 194 5,070 $ 5,100 $ 9,100 $ 6,720 $ 25,990 Start-up Costs Other Costs, including administrative, travel,etc. Discount Total Proposed Fee FISCAL YEAR ENDING SEPTEMBER 30, 2019 (OPTIONAL YEAR 2) (6,990) $ 19,000 Phase Estimated Hours Partner Senior / Manager Supervisor Staff Grand Total Audit Planning 2 4 4 - 10 Interim Procedures 2 4 24 24 54 Year-end Substantive Testing 16 20 40 40 116 Exit Conferences and Reporting 6 6 2 - 14 Totals Standard Billing Rates Fees at Standard Rates 26 34 70 64 194 $ 195 $ 150 $ 130 $ 105 $ 5,070 $ 5,100 $ 9,100 $ 6,720 $ 25,990 Start-up Costs Other Costs, including administrative, travel,etc. Discount Total Proposed Fee (6,990) $ 19,000 Since a Federal or State Single Audit is not required, our proposed fees above do not include an estimate for such. If a Federal and/or State Single Audit is ever required, we will provide the Trust with a proposed fee at the time it's deemed to be required. 42,11,1414.*601.90.11,34,55,1 Bayfront Park Management Trust — RFP No.496326 V Sanson, Kline, Jacornino, Tandoc & Gansarra, LLP Rate for Additional- rofessionaf Services If the Trust requests any additional services outside the scope of the audit, then such additional work shall be performed only upon a written agreement between the Trust and SKJT&G. Any such additional work agreed to between the Trust and SKJT&G shall be performed at a blended rate of $125 per hour, with the exception of a Federal or State single audit, which fee will be estimated as a fixed fee. Services outside the scope of the audit may include those services that would not impair our independence as your auditors, such as consent letters, certain agreed -upon procedures, tax -related research and inquiries, and certain other financial consulting services. Bayfront Park Management Trust— RFP No.496326