Loading...
HomeMy WebLinkAboutR-2001-139 ® RESOLUTION NO. 2001-139 A RESOLUTION OF THE CITY OF DANIA BEACH, FLORIDA, ACCEPTING AN ENGAGEMENT LETTER SUBMITTED BY S. DAVIS & ASSOCIATES, P.A. TO PROVIDE AUDITING SERVICES FOR THE CITY OF DANIA BEACH FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 2001; PROVIDING FOR AN ANNUAL FEE NOT TO EXCEED $45,000.00; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City of Dania Beach (the "City") prepares and has audited its general purpose financial statements in -the form of an annual Comprehensive Annual Financial Report ("CAFR"); and WHEREAS, said financial statements are audited in order to obtain an opinion that they are accurately presented in conformity with accounting principles generally accepted in the United States; and ® WHEREAS, the audit tests the accounting records of the City in order to provide information upon the reliability of such accounting records to the City Commission, City management, and other users of the CAFR; and WHEREAS, the Government Accounting Standards Board ("GASB") has issued GASB Statement 34 which will significantly change both the material presented in the CAFR and the presentation format of the material, which will require considerable supplemental work in the preparation of the CAFR during the next three year period; and WHEREAS, while the standard in the preparation of CAFR's is that municipal entities prepare the financial statements and then have these statements audited by an independent entity, but in the City of Dania Beach the preparation of the financial statements is also substantially done by the independent auditor; and RESOLUTION NO: 2001-139 ® WHEREAS, the Director of Finance recommends that the City reach the level of competency where it is capable of preparing its own financial statements, thereby reducing the costs to the City of having such preparation performed by an outside auditor, and that the City undertakes this task while incorporating those changes relative to the implementation of the requirements of GASB 34; and WHEREAS, in order to facilitate the transitions associated with GASB 34 and to accomplish the objective of having City staff prepare the annual financial statements it is desirable to obtain the services of an independent auditor that is familiar with the City's accounting records and practices. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA: Section 1. That the certain engagement letter dated August 1, 2001, submitted ® by S. Davis &Associates, P.A., providing auditing services for the City of Dania Beach for the year ending September 30, 2001, a copy of which is attached hereto as Exhibit "A", is approved and the appropriate city officials are authorized to execute same. Section'2. That the City Manager is authorized to pay from the General Fund an amount not to exceed $45,000.00 on an annual basis for the fiscal year ending September 30, 2001. Section 3. That the cost for the preparation, review and printing of the CAFR should not exceed $16,000.00 per year over the period of the contract; said cost to be significantly reduced or eliminated as the City prepares its own financial statements. Section 4. That this resolution shall be in force and take effect immediately upon its passage and adoption. RESOLUTION NO: 2001-139 PASSED AND ADOPTED THIS 14" DAY OF AUGUST 2001. PAT FLURY MAYOR-COMMISSIONER ATTEST: ROLL CALL: COMMISSIONER BERTINO - ABSENT COMMISSIONER MCELYEA - YES CHA LENE J SON COMMISSIONER MIKES - YES ACTING CITY CL RK VICE-MAYOR CHUNN - YES MAYOR FLURY - YES APPROVED AS TO FORM AND CORRECTNESS: BY: THoMAS J. ANSBRO CITY ATTORNEY RESOLUTION NO: 2001-139 S. DAVIS & ASSOCIATES, P.A. Certified Public Accountants & Consultants Suite 110Y 2521 Hollywood Boulevard 1515 N.W. 167 Street Hollywood,Florida 33020 Miami,Florida 33169 (954) 927-5900 (305)628-1510 (954) 927-5927 Fax (305)628-1595 Fax August 1, 2001 Honorable Mayor, Members of the City Commission and City Manager City of Dania Beach P.O. Box 1708 Dania Beach, Florida 33004 We are pleased to confirm our understanding of the services we are to provide the City of Dania Beach for the year ended September 30, 2001. We will audit the general purpose financial statements of the City of Dania Beach as of and for the year ended September 30, 2001. We understand that the general purpose financial statements will be presented in accordance with the financial reporting model in effect prior to that described in GASB Statement No. 34 for the year ended September 30, 2001. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements: 1. GASB required supplementary pension information 2. Information for the Comprehensive Annual Financial Report (CAFR) The objective of our audit is the expression of an opinion as to whether the general purpose financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the general purpose financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States,Office of Management and Budget("OMB") Circular A-133,Audits of Institutions of Higher ;a--Education.:and-.other=Nonprofit=1.nstit,utions;n:and.kthe.:�Ruless of he Auditoru General=for. .L-=ocal _ -- __.._.. _ ._. - Governmental"`Entity Audits and`will include tests of the-accounting records of tfie City ofDania Beach and other procedures we consider necessary to enable us to express such an opinion. If our opinion on the general purpose financial statements is other than unqualified, we will fully discuss the reasons with you in advance. If,for any reason,we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Member Florida Institute of Certified Public Accountants New York State Society of Certified Public Accountants American Institute of Certified Public Accountants City of Dania Beach Engagement Letter Page 3 transactions, there is a risk that material misstatements (whether caused by errors or fraud) or illegal acts may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements, immaterial illegal acts or illegal acts that do not have a direct effect on the general purpose financial statements. However, we will inform you of any material errors that come to our attention and any fraud that comes to our attention. We will also inform you of any illegal acts that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. Identifying and ensuring that the City of Dania Beach complies with laws, regulations, contracts, and agreements is the responsibility of management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we will perform tests of the City of Dania Beach's compliance with applicable laws and regulations and the provisions of contracts and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to determine the nature,timing,and extent of our auditing procedures for the purpose of expressing our opinion on the City of Dania Beach's general purpose financial statements. • We will obtain an understanding g of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the general purpose financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the general purpose financial statements. (Tests of controls are required only if control risk is assessed below the maximum level.) Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed. An audit is not designed to provide assurance on internal control or to identify reportable conditions. However, we will inform the governing body or audit committee of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by.the-American-Institute>o.f-Certified-Public=Accountants.-Reportable=conditionsf!involve matter-s - - --= coming to our attention relating to significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely affect the entity's ability to record, process, summarize, and report financial data consistent with the assertions of management in the general purpose financial statements. City of Dania Beach Engagement Letter Page 2 The management of the City of Dania Beach is responsible for establishing and maintaining internal control and for compliance with laws, regulations, contracts, and agreements. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial restatements remain with you. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting, the selection and application of accounting principles, and the safeguarding of assets. Management is responsible for adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any • uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories,and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit,we will also require certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment_about the number of transactions to -- _-- ,be=examined_and_.thewareas--to-be=tested;==We will=plan=and perform the-audit to obtain-reasonable -v - --- rather than absolute assurance about whether the financial statements are free of material misstatement,whether caused by error or fraud. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all transactions,there is a risk that material misstatements (whether caused by errors or fraud) or illegal acts may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements, immaterial illegal acts or illegal acts that do not have a direct effect on the general • purpose financial statements. However, we will inform you of any material errors that come to our City of Dania Beach Engagement Letter i Page 3 attention and any fraud that comes to our attention. We will also inform you of any illegal acts that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. Identifying and ensuring that the City of Dania Beach complies with laws,regulations, contracts, and agreements is the responsibility of management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we will perform tests of the City of Dania Beach's compliance with applicable laws and regulations and the provisions of contracts and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. In planning and performing our audit,we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinion on the City of Dania Beach's general purpose financial statements. We will obtain an understanding of the design of the relevant controls and whether they have been placed in operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and fraud that are material to the general purpose financial statements and to preventing and detecting misstatements resulting from illegal acts and other noncompliance matters that have a direct and material effect on the general purpose financial statements. (Tests of controls are required only if control risk is assessed below the maximum level.) Our tests, if performed,will be less in scope than would be necessary to render an opinion on internal control and, accordingly, no opinion will be expressed. An audit is not designed to provide assurance on internal control or to identify reportable conditions. However, we will inform the governing body or audit committee of any matters involving internal control and its operation that we consider to be reportable conditions under standards established by the American Institute of Certified Public Accountants. Reportable conditions involve matters coming to our attention relating to significant deficiencies in the design or operation of the internal control that,in our judgment,could adversely affect the entity's ability to recordprocess,_summanze, _ �..,-- _._.�__,__ k_an�.::report.:�financial;data-.consistent with_the__-riser-lions-.of�-management---in..the-general--purpose , -- --- --- -- -- financial statements. We understand that your employees will prepare all cash or other confirmations we request and will locate any invoices selected by us for testing. • l City of Dania Beach Engagement Letter Page 4 The workpapers for this engagement are the property of S. Davis & Associates, P.A. and constitute confidential information. However, we may be requested to make certain workpapers available to third parties pursuant to authority given to it by law or regulation. If requested, access to such workpapers will be provided under the supervision of S. Davis & Associates, P.A. personnel. Furthermore, upon request, we may provide photocopies of selected workpapers to third parties. Third parties may intend, or decide, to distribute the photocopies or information contained therein to others, including other,governmental agencies. Our fee for these services will be at our standards hourly rates plus out-of pocket costs (such as postage,travel, copies,telephone, etc.) except that we agree that our gross fee, including expenses, will be $45,000 for the audit for the year ending September 30, 2001, assuming no substantial changes by the City of Dania Beach and $16,000 for the Comprehensive Annual Financial Report. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies, work may be suspended if your account becomes 30 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for nonpayment, you will be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs ® through the date of termination. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. Any controversy or claim arising out of or relating to the services covered by this letter or hereafter provided by us to the City of Dania Beach (including any such matter involving any subsidiary, affiliate or agent of the City of Dania Beach or of S. Davis & Associates, P.A.) shall be submitted first to voluntary mediation and, if mediation is not successful, then to binding arbitration in accordance with the dispute resolution procedures set forth in the attachment to this letter. Judgement on any arbitration award may be entered in any court having proper jurisdiction. Government Auditing Standards require that we provide you with a copy of our most recent quality control review report. Our 2000 peer review report accompanies this letter. City of Dania Beach Engagement Letter • Page 5 We appreciate the opportunity to be of service to the City of Dania Beach and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, S. Davis & Associates, P.A. RESPONSE: This letter correctly sets forth the understanding of the City of Dania Beach. • By: Title: Date: City of Dania Beach Gnglet 2001.wpd DISPUTE RESOLUTION PROCEDURES The following procedures shall be used to resolve any controversy or claim ("dispute") as provided in our engagement letter of August 1, 2001. If any of these provisions are determined to be invalid or unenforceable, the remaining provisions shall remain in effect and binding on the parties to the fullest extent permitted by law. Mediation A dispute shall be submitted to mediation by written notice to the other party or parties. In the mediation process, the parties will try to resolve their differences voluntarily with the aid of an impartial mediator, who.will attempt to facilitate negotiations. The mediator will be selected by agreement of the parties. If the parties cannot agree on a mediator, a mediator shall be designated by the American Arbitration Association("AAA")or such other neutral facilitator acceptable to both parties. The mediation will be conducted as specified by the mediator and agreed upon by the parties. The parties agree to discuss their differences in good faith and to attempt, with the assistance of the mediator, to reach an amicable resolution of the dispute. The mediation will be treated as a settlement discussion and therefore will be confidential. The mediator may not testify for either party in any later proceeding relating to the dispute. No recording or transcript shall be made of the mediation proceedings. Each party will bear its own costs in the mediation. The fees and expenses of the mediator will be shared equally by the parties. Arbitration If a dispute has not been resolved within 90 days after the written notice beginning the mediation process (or a longer period, if the parties agree to extend the mediation), the mediation shall terminate and the dispute will be settled by arbitration. The arbitration will be conducted in accordance with the procedures in this document and the Arbitration Rules for Professional Accounting and Related Services Disputes of the AAA as in effect on the date of the engagement letter("AAA Rules"). In the event of a conflict, the provisions of this document will control. The arbitration will be conducted before.a_panel-of three arbitrators, regardless of the,.size Qf_the_,.___ �._ -- dispute;to be=selected as provided in the AAA Rules —Any-issue concerning,the-extent-to-which-any---------- dispute is subject to arbitration, or concerning the applicability, interpretation, or enforce ability of these procedures, including any contention that all or part of these procedures are invalid unenforceable, shall be governed by the Federal Arbitration Act and resolved by the arbitrators. No potential arbitrator may serve on the panel unless he or she has agreed in writing to abide and be bound by these procedures. DISPUTE RESOLUTION PROCEDURES - Continued The arbitrators may not award non-monetary or equitable relief of any sort. They shall have no power to award punitive damages or any other damages not measured by the prevailing parry's actual damages, and the parties expressly waive their right to obtain such damages in arbitration or in any other forum. In no event, even if any other portion of these provisions is held to be invalid or unenforceable, shall the arbitrators have power to make an award or impose a remedy that could not be made or imposed by a court deciding the matter in the same jurisdiction. No discovery will be permitted in connection with the arbitration unless it is expressly authorized by the arbitration panel upon a showing of substantial need by the party seeking discovery. All aspects of the arbitration shall be treated as confidential. Neither the parties nor the arbitrators may disclose the existence, content or results of the arbitration, except as necessary to comply with legal or regulatory requirements. Before making any such disclosure, a parry shall give written notice to all other parties and shall afford such parties a reasonable opportunity to protect their interests. The result of the arbitration will be binding on the parties, and judgment on the arbitrators' award may be entered in any court having jurisdiction. • • HOLLAND & REILLY CERTIFIED PUBLIC ACCOUNTANTS 601 NORTH FERN CREEK SUITE 200 • ORLANDO. FLORIDA 32803 (407) 994.6803 DAVID S. HOLLAND,CPA AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS THOMAS F. REILLY,CPA FLORIDA INSTITUTE OF August 17, 2000 CERTIFIED PUBLIC ACCOUNTANTS To the Partners S. Davis &Associates, P.A. We have reviewed the system of quality control for the accounting and auditing practice of S.Davis & Associates, P.A. (the firm) in effect for the year ended November 30, 1999. A system of quality control encompasses the firm'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 described in the Statements of Quality Control Standards issued by the American Institute of Certified Public Accountants (AICPA). The design of the system and compliance with it are the responsibility of the firm. Our responsibility is to express an opinion on the design of the system, and the firm's compliance with the system based on our review. Our review was conducted in conformity with standards established by the Peer Review Board of ithe AICPA. In performing the review,we obtained an understanding of the system of quality control for the firm's accounting and auditing practice. In addition, we tested compliance with the firm's quality control policies and procedures to the extent we considered appropriate. These tests covered the application of the firm's policies and procedures on selected engagements. Because our review was based on selective tests,it would not necessarily disclose all weaknesses in the system of quality control or all instances of lack of compliance with it. Because there are inherent limitations in the effectiveness of any system of quality control, departures from the system may occur and not be detected. Also,projection of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or because the degree of compliance with the policies and procedures may deteriorate. In our opinion,the system of quality control for-the accounting and auditing-practice-of S.Davis& -- 'Associates, P.A. in effecffor the year ended November 30; 1999;has-6eeri designed to meet the requirements of quality control standards for an accounting and auditing practice established by the AICPA,and was being complied with during the year then ended to provide the firm with reasonable assurance of complying with professional standards. 0 Holland& Reilly S. DAVIS & ASSOCIATES, P.A. _ Certified Public Accountants & Consultants Suite 110Y 2521 Hollywood Boulevard 1515 N.W. 167 Street Hollywood, Florida 33020 Miami, Florida 33169 (954) 927-5900 (305)628-1510 (954)927-5927 Fax j (305)628-1595 Fax August 1, 2001 Honorable Mayor, Members of the City Commission and City Manager City of Dania Beach P.O. Box 1708 Dania Beach, Florida 33004 We are pleased to confirm our understanding of the services we are to provide the City of Dania Beach for the years ended September 30, 2001, 2002, and 2003. We will audit the general purpose financial statements of the City of Dania Beach as of and for the year ended September 30, 2001, 2002, and 2003. We understand that the general purpose financial statements will be presented in accordance with the financial reporting model in effect prior to that described in GASB Statement No. 34 for the years ended September 30, 2001, and 2002. The general purpose financial statements for the year ended September 30, 2003 will be presented in accordance with GASB Statement No. 34. Also, the document we submit to you will include the following additional information that will be subjected to the auditing procedures applied in our audit of the general purpose financial statements: 1. GASB required supplementary pension information 2. Information for the Comprehensive Annual Financial Report (CAFR) 3. Required supplementary information under GASB 34 for the year ended September 30, 2003. The objective of our audit is the expression of an opinion as to whether the general purpose financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness of the additional information referred to in the first paragraph when considered in relation to the general purpose financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States,Office of Management and Budget("OMB") Circular A-133, Audits of Institutions of Higher Education and other Nonprofit Institutions, and the Rules of the Auditor General for Local Governmental Entity Audits and will include tests of the accounting records of the City of Dania Member Florida Institute of Certified Public Accountants New York State Society of Certified Public Accountants American Institute of Certified Public Accountants City of Dania Beach Engagement Letter Page 2 Beach and other procedures we consider necessary to enable us to express such an opinion. If our opinion on the general purpose financial statements is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. The management of the City of Dania Beach is responsible for establishing and maintaining internal control and for compliance with laws, regulations, contracts, and agreements. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance with management's authorizations and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. We will advise you about appropriate accounting principles and their application and will assist in the preparation of your financial statements, but the responsibility for the financial restatements remain with you. That responsibility includes the establishment and maintenance of adequate records and effective internal control over financial reporting, the selection and application of accounting principles, and the safeguarding of assets. Management is responsible for adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the financial statements taken as a whole. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts,and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. Because an audit is designed to provide reasonable, but not absolute assurance and because we will not perform a detailed examination of all 08/06/200t 13:46 FAX S Davis & Associates 11002/002 City of Dania Beach Engagement Letter Page 4 We understand that your employees will prepare all cash or other confirmations we request and will locate any invoices selected t y us for testing. The workpapers for this engagement are the property of S.Davis&Associates,P.A. and constitute confidential information. However, we may be requested to make certain workpapers available to third parties pursuant to authority given to it by law or regulation. If requested, access to such workpapers will be provided under the supervision of S. Davis & Associates, P.A. personnel. Furthermore,upon request, we may provide photocopies of selected workpapers to third parties. Third parties may intend,or decide, to distribute the photocopies or information contained therein to others, including other governmental agencies. Our fee for these services will be at our standards hourly rates plus out-of pocket costs (such as postage,travel,copies,telept.one,etc.)except that we agree that our gross fee, including expenses, will be $45,000 for the audit for the years ending September 30, 2001, 2002, and 2003, assuming no substantial changes by tte City of Dania Beach and $16,000 for the Comprehensive Annual Financial Report for each year. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. In accordance with our firm policies,work maybe suspended if your account becomes 30 days or more overdue and may not be resumed until your account is paid in full. If we elect to terminate our services for Doi ipayment,you will be obligated to compensate us for all time expended and to reimburse us for all cut-of-pocket costs through the date of termination. The above fee is based on anticipated coop ration from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will.discuss it with you,,M arrive at a new fee estimate before we incur the additional costs. Any controversy or claim ar:.sing out of or relating to the services covered by this letter or hereafter ania Beach (including any such matter involving any subsidiary, provided by us to the City of D affiliate or agent of the City of Dania Beach or of S.Davis&Associates,P.A.)shall be submitted first to voluntary mediatiui and, if mediation is not successful, then to binding arbitration in accordance with the dispute resolution procedures set forth in the attachment to this letter. Judgement on any arbitration award may be entered in any court having proper jurisdiction. Government Auditing Standards require that we provide you with a copy of our most recent quality control review report. Our 2000 peer review report accompanies this letter. City of Dania Euglet 200 t-03.wpd City of Dania Beach Engagement Letter Page 5 We appreciate the opportunity to be of service to the City of Dania Beach and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Ve truly yours, . �,c.-tom � G�'�-� 7 •`�` S. Davis & Associates, P.A. RESPONSE: This letter correctly sets forth the understanding of the City of Dania Beach. By: Title: Date: DISPUTE RESOLUTION PROCEDURES The following procedures shall be used to resolve any controversy or claim("dispute") as provided in our engagement letter of August 1, 2001. If any of these provisions are determined to be invalid or unenforceable, the remaining provisions shall remain in effect and binding on the parties to the fullest extent permitted by law. Mediation A dispute shall be submitted to mediation by written notice to the other party or parties. In the mediation process, the parties will try to resolve their differences voluntarily with the aid of an impartial mediator, who will attempt to facilitate negotiations. The mediator will be selected by agreement of the parties. If the parties cannot agree on a mediator, a mediator shall be designated by the American Arbitration Association ("AAA") or such other neutral facilitator acceptable to both parties. The mediation will be conducted as specified by the mediator and agreed upon by the parties. The parties agree to discuss their differences in good faith and to attempt, with the assistance of the mediator, to reach an amicable resolution of the dispute. The mediation will be treated as a settlement discussion and therefore will be confidential. The mediator may not testify for either party in any later proceeding relating to the dispute. No recording or transcript shall be made of the mediation proceedings. Each party will bear its own costs in the mediation. The fees and expenses of the mediator will be shared equally by the parties. Arbitration If a dispute has not been resolved within 90 days after the written notice beginning the mediation process (or a longer period, if the parties agree to extend the mediation), the mediation shall terminate and the dispute will be settled by arbitration. The arbitration will be conducted in accordance with the procedures in this document and the Arbitration Rules for Professional Accounting and Related Services Disputes of the AAA as in effect on the date of the engagement letter("AAA Rules"). In the event of a conflict, the provisions of this document will control. The arbitration will be conducted before a panel of three arbitrators, regardless of the size of the dispute,to be selected as provided in the AAA Rules. Any issue concerning the extent to which any dispute is subject to arbitration, or concerning the applicability, interpretation, or enforce ability of these procedures, including any contention that all or part of these procedures are invalid unenforceable, shall be governed by the Federal Arbitration Act and resolved by the arbitrators. No potential arbitrator may serve on the panel unless he or she has agreed in writing to abide and be bound by these procedures. • DISPUTE RESOLUTION PROCEDURES - Continued The arbitrators may not award non-monetary or equitable relief of any sort. They shall have no power to award punitive damages or any other damages not measured by the prevailing party's actual damages, and the parties expressly waive their right to obtain such damages in arbitration or in any other forum. In no event, even if any other portion of these provisions is held to be invalid or unenforceable, shall the arbitrators have power to make an award or impose a remedy that could not be made or imposed by a court deciding the matter in the same jurisdiction. No discovery will be permitted in connection with the arbitration unless it is expressly authorized by the arbitration panel upon a showing of substantial need by the party seeking discovery. All aspects of the arbitration shall be treated as confidential. Neither the parties nor the arbitrators may disclose the existence, content or results of the arbitration, except as necessary to comply with legal or regulatory requirements. Before making any such disclosure, a party shall give written notice to all other parties and shall afford such parties a reasonable opportunity to protect their interests. The result of the arbitration will be binding on the parties, and judgment on the arbitrators' award may be entered in any court having jurisdiction. • • AGENDA REQUEST FORM CITY OF DAN IA BEACH y To City'Manager's office%Cit'' :Caerk QIVISIOCI g '. Prepared By: David E. Keller Date: 8/7/2001 --------------------------------------------------------------------------------------------------------------------------------- Please complete the following items related to your agenda request. 1. Date of Commission meeting: 8/14/01 2. Title: a resolution of the city of Dania Beach, Florida, accepting an engagement letter submitted by S. Davis & Associates, P.A. to provide auditing services for the city of Dania Beach for the fiscal years ending September 30, 2001, 2002 and 2003; providing for an annual fee not to exceed $45,000.00; further, providing for an effective date. 3. Commission action requested: Adopt Resolution or Ordinance ® Expenditure ® Award Bid/RFP Presentation ❑ General approval of item ® Continued from meeting ❑ ® Other(please explain) ❑ 4. Summary explanation & background: This resolution would have the City enter into a three year agreement for the provision of audit services with the firm of S. Davis and Associates. . 5. Attached Exhibits (please list): 1. Exhibit"A", an Engagement Letter 2. Memo from Finance Director David E. Keller 6. List Additional Backup Materials Provided: 7. For purchasing requests only: Fund: Various Dept.Various Account name: Audit Account#: 001-12-0210-53-320, etc. Finance Director Approval_CQ, 8. Reviewed and approved: De m nt or Date City Manager Date