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HomeMy WebLinkAboutR-2013-119 Executed a Financial Audit Engagement Letter with Harvey, Covington and Thomas of South Florida, LLC RESOLUTION NO. 2013-119 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO EXECUTE A FINANCIAL AUDIT ENGAGEMENT LETTER WITH HARVEY, COVINGTON AND THOMAS OF SOUTH FLORIDA, LLC; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE. WHEREAS the CityCommission established a ranking of City financial audit proposals g tY P P on September 10, 2013,and WHEREAS, Harvey, Covington and Thomas of South Florida, LLC (Harvey, Covington)was ranked as the most responsive and responsible proposer; and WHEREAS, Harvey, Covington has prepared the attached financial audit engagement letter for consideration and approval by the City Commission; and WHEREAS, the engagement letter reflects appropriate and necessary annual financial audit services required by the City of Dania Beach that were reflected by and incorporated in the bid proposal provided to the City by Harvey, Covington; and WHEREAS, the audit engagement term provides for annual service that is automatically renewed for a total of three (3) years unless canceled in writing by either party, and further provides for two (2) extensions of service for one year subject to annual approval by the City Commission; NOW, THEREFORE,BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA BEACH,FLORIDA: Section 1. That the above"Whereas"clauses are acknowledged as factual and correct and they are made a part of and incorporated into this Resolution by this reference. Section 2. That the City Commission of the City of Dania Beach authorizes and approves the proper City officials to execute the audit services agreement with Harvey, Covington and Thomas of South Florida, LLC as the provider of City annual financial auditing services for a period of three (3)years (for the years ending September 30, 2013, 2014 and 2015) as outlined in the attached Engagement Letter(identified and attached as Exhibit A). Section 3. That the City Commission further authorizes the proper City officials to take all steps necessary to execute the Engagement Letter in Exhibit A, for the continuance of the City's financial auditing services with Harvey, Covington and Thomas of South Florida, LLC. Section 4. That all resolutions or parts of resolutions in conflict with any portion of the provisions in this Resolution are repealed to the extent of such conflict. Section 5. That this Resolution shall be in force and become effective immediately upon its passage and adoption. PASSED AND ADOPTED on September 24, 2013. ATTEST: LOUISE STILSON, CMC WA ER B. DUKE, III CITY CLERK MAIPOR APPROVED AS FO AND LEGALITY O�pRD•s 6 7 THO J. AMBM CITY ATTORNEY 2 RESOLUTION#2013-119 5epternber It.2013 To The Honorable Mayor,C omnissirn and City Manager City,of Dania Beach.Florida I W West Dania Beads Boulevard Dania Beach,Florida 33004 We are pleased to confirm our understanding of the services we are to provide the City,of Dana Beach, Florida (the AChj for the years ended Septwnber X 2013.2014 and 2D15 with txnv,separate cne-yea options for renewal for September 30.2010 and 2017,subject to written appmrval of both parties.We will audit the financial staternerds of the governmental activities. the bumess-type activities. each major fund. and the aggregate, remaining find irdbrrnation,including the related notes to the financial statements,which collectively,c ornprse the basso financial stalemerdr,and the General Employee Pension Plan.of the City as of and far the years ended Sepbanber 30.2013.2014,2D15 and IF the too year optional renewal is exercised.September 2A16 and 2017. Accounting standards generally accepted in the United States of Ante m provide for certain required supplernembiry irfonnation (RSIX such as rnanagerment's discussion and analysis (MESA),to supplement the City's basic fnandal shdarnnerctx_ Such ediomreicn. although not a part of the basic financial stmimeriveribs, is required by the Governmiental Acoourdit Standards Board who c nsitleffs it to be an essential part of finanxaal ngxx ling for placing the basic financial statements in an appropnete operational.eeorornc.or historical conlemt As part of our engagement:we will apply,certain limited procedures to the CIVs RSI in accordance with auditing standards generally accepted in the United States of America.Thew limited procedures will consist of inquiries of management regwdfig the mall ads of preparng the inlOrninfan and Comparing tie inflCrmatimm for constancy with managemeWs responses to our inquiries.the basic fhrnanc ial staternents.and otrer knowledge we obtained during our audit of the basic financial sea' enis.We will not express an opiniwi or pnmMe arty assurance on the n bFnudjon be maisa the limited procedures do not provide us with sulficaa t ewitlence to express an opinion or provide any assarencim The following RSI is required by generally accepted accounting principles and will be subjected to certain limited prorxdues,but will not be audited: 1) Mariagernent's Discussion and Anatgss. 2) Budgn#ay Cornpansm Sc hedules Ceeral Fund and Co ni unity Redevek*rnst Agency Fund 3) Schedules of Funding Progress-General Employee's Pension Fund.Police and Fiefighie s Pension Fund and Other Post 1 Wkiyinert Benefits. We have also been engaged to report an supplernenwy,"Am.titian other than RSl that aoochnpanies the City+'s financial stateinemts.We will subject the followfg supplement"irfian wdon to the auuitirg procedures applied in our audit of the financial sialeniernts and certain additional procedures,Wdufag corrpang and reouhding such information directly to the undedyng a000unliM and other records used 10 prepare the financial slallen>ents or to the financial statements themselves, and other additional Procedures in accordance with audctinp standards gemmally accepted in the United Staters of America and will pmrAk an opinion on it in relation to the financial staternents as a whole: 1) Schedule of Eqmndilunas of Federal Awards(and State Finandal Assstarm). 2) Combining Indnvidmal Non major Fund lFnamael Statements and Schedules 3) Budgetary Canparscn Schedules The fallmng other information accompanying the financial statanerds will not be subjected to the auditing procedures applied in our audit of the financial staterments,and our author's report will not provide an opinion or any assurance on that other nlonmatian. 1) Introductory Section 2) Statistical lnkxmatian Section 3 RESOLUTION#2013-119 z Audit Ob ecares The otiective of our audit is the expression of opinions as to whether your basic linandid staterrnents am fairly presented.in all material respects.in conformity with U.S.generally accepted accounting principles and to report an the fairness of the supplernentary Wonnation refs. to ii the second paragraph when considered in relation to the fnenciai statements as a nrhale.The objective also includes reporting on— • Irnlernal control relaled to the financial statements and mmplance wth the provisions of tars,regulations, contracts.and giant agmerrrerks.noncompliance with winds could have a material elliect an the financial statements in accordance with GovernmentAudiing Slandank. • lrrtemal control related to major programs and an opinion(or dsnieiner of opinion)an compliance rdh lams. mgulaucrhs. and the proirsions of.a..b or grit aweements that could hang a dnrect acid material effect an each major program it accordance with the Single Audit Act Amendments of 19M and OMB Cranfer A-133.Audis of S1ate$,Local Gmemments,and Ilk 4%R Ongan ink=and if applicable Chapter 10MI).Rules of the Auditor General of the State of Florida The reports an i b nd control and compliance will each include a paragraph tug that the purpose of the report is solely to describe(1)the scope of hmM of inlarrnl trtrd over financial reporting and compliance and the result of that ttnstingi and not to provide an opinion on the dueness of internal control over financial mpocra or on compliance. (2)the scope of testing idemal control over connpiance for major programs and major program compliance and the resut of that teskim and to provide an opinion an compliance but not to provide an opinion an the e5eckiverness of internal an d over mnpie noe,and(3)that the report is an iftnal pat of an audit Pei lion. in accordance with GoverrarnentAudfna Soda in corsiderirng irdemal control over financial reporting and corrow nce and OW Cktxtar A-133 in rendering itarrnal conYol over eompianoe and major program compliance.The paragraph Will also stale that the report is not suiable for army other pnrposs. Our audit wig be earndur I in accordance with auditing standards geneaiy acc epled in the United States of Amei= the standads for fnan iaf audits contained in Govenraent Auefiirg Staediarcia. boo d by the Comptroller General of the United Stakes;the Single Audit Ack Amenmhrhehle of 1M-.and the provisions of OMB Circular A-133 and ff applicable Chanter 11LOW Rules of the Auditor Gameral of the State of Fkrida and will include tests of accounting records,a determination of major program(s)in accordance rills OMB CiuAar A-133. and iF applicable Chapter 1118M Rules of the Auditor Geneid of the State of Florida,and o0w procedures ine consider neoessoy to enable us to express such op no s aid to render the required mpm we cannot pride assu once that urrnodTied opinions wti be expressed.Ckcunmd ncas may arise in won ids it is neoessairy fur us to moldy our opinions or add emph®ss-a"natter or other p tagtapts. N cur opinions on the fnandal statements or the Single Audi compienoe opinions are other then urrrnouified.we will discuss the reasons with you in adva3nrroe.1.for any reason.we are unable to congdate the audit or am unable to form or have not formed opinions,we may decline to express opinions or W issuer a report as a result of this engagement. Menegemert is responsible for the basic fnanouil stal rnerft schedule of expenditures of federal awards.and all accanpanryirg idor n coo n as weir as air mpreserntatimns contained 9hn wL Managenwd is also msponnsble fur iden Ring government award prograns and u idastandinp arid complMirp with the eempliance mquvemenls,and for preparation of the schedule of expendibua s of federal awards and stake financial assistance in accordance with the requirements of OMB Circular A-133 and t applicable Quoler 1[LOW Rules of the Audbw General of the State of Florida As pat of the audt,we will assist with preparation of your fiwnclat statements,s I We of expenditures of federal awards. and related notes. You will be required to ack owledpe in the wmllen representation talker our assistance with preparation of the fru eneiel slabameuts and schedule of expenditures of federal awards (and State Financial Assistance) and think vro have revile - and apgoved the Nui ncial statements,sctredule of wependbrss of federal arrads(and Stake Financial A•s�+nce),and related motes prior to their issuance and have accepled responsibility for them.You acme to assume all numuosernet remarrsi6iities for any nonaudit services we provide;oversee the services by designating an individual.preferably from sem or managemerniL who possesses suitable omit.lanawledge.or experience;evaluate the adequacy and results of the services,;and accept responsibility for them. Mansawne t is responsible for estaki6hirna and maihfoinian effective irntemal controls.including internal eomtrols over compliance.and far evaluating and monitoring ongoing artiviies,to help ensure that appopdda goals and cbiectives are met and that there is reasonnabte assmanoe that noverimernk protsams are adrmrisleied in compliance with compliance requiremeds. You are also responsible for the selection and application of 4 RESOLUTION#2013-119 3 accounting principles;for the preparation and fair presentation of the financial stalls it confarmity with U.S. generality accepted accounting principles and for compliance with applicable laws and reguihdionns and the pnarisbris of contracts and grant agreements. Mariatiement is aao responsible for maki na all financial reoads and related infonnelien available to us and for ensuring that management is reliable and financial irnfmmnaticn is Fellable and property recorded You are also responsible for providing us with (1)amass to all idexmauNan of which you are aware that is relevant to the preparation and fair preserfaion of the financial stetemerds,(2)addillionel inbrtnation that we may request for the purpose of the audit, and(3)unrestricted access to persons within the government from whom we determine it necessary to obtain audit evidence_ Your responsibilities also include idehdhft siprrficant vendor relationships in whidn the vendor has responsibility far program compliance and for the accuracy and completeness of tug idon.atioa Your responsibilities include adjusting the fnandal staierrrents to corm t nuderal misstatements and confinmirg to us in the written representation letter that the effete of any unconected misstated aggregated by us during The cuarerit engagement and pertaining to the latest period presented are imnamaial,both individually and in the aggregate. to the financial statements taken as a whole You are responsible for the design and inpleFnentaion of programs and co als to prevent and detect fraud,and for infomiug us about all keno r or suspected fraud of kft the govemneut involvig (1)management, (2) empbyees who have sigrrfirant mles in internal corib .and(3)allm wl a the fraud could have a maleral effect on the financial statements.Your responsibilities include idon.ig us of your knowledge of any allegations of fraud er suspected fraud affecting the government received in caminu icabo s 11mm employees. former employees.grantor,regulators.or olhes.In addition, you are respon6ble for identifyirng and ensuring that the entity—pies with applicable lanes,regdeticrs,acntracts.atireerrrerrci,and grants.Addiliornelly,as required by OMB CkaAar A433 and f applicable Chapter i&IM)Ruder of the Auditor General of the Sate of Florida,it is managements responsibly to follow up and take conrechve action on reported audit findings and to prepare a summary schedule of prior audit findings and a corrective action plan.The summary schedule of prior audit findings should be available for our reviews on or around November B,2D13. You are responsible for preparation of the schedule of expenditures of federal cods (and State financial Asss#arnee)in conformity wih OMB Ctrmlar A-133 and W applicable Chapter I DAW Rubes of this Auditor General of the State of Florida.You agree fo ix3r I our report on the schedule of e3ilhendiums of federal awards (and state financial assitglance)in any document that contains and inhales that we have rep—an the schedule of expenditures of federal awards.You also agree to ihcl rite the audited financial stalsrne is with any presentation of the stele of expendtues of fedeaal awards that includes cur report thereon OR crake the audited financial statements madily available to intended users of the schedule of expernfihaar;of federal awards no later than the date the schedule of expehdbres of federal awards is slued with our report thereon. Your respa isibities include ackrnowledgirg to us in the wrifteri representation leterthat(1)you are nesporisdia ice presentis ion el the schedule of expenrilums of federal awards and state financial assislanice in aocondance with OMB CircularA-133 and if appicaMe Chapter MGM %des of the Auditor General of i he Sale of Fkrrida;(t)that you believe the schedule of experdtures of federal awards(aunt sate finarndal assislanoe).indudim is form and ccrnkwit is fairk presen ted in atwordance with OMB Circular A-133 and if applicable Chapter 10.650 Rules of the Auditor General of the State of Florida:(3)that the nnel hods of measurement or presentation have not changed cram those used in the prior period(or.if they have changed,the reasons for such chargesy and(4)you have efsclosed to us any significant assumptions or interprebaicrs underlying the measurement or presentation of the mule of expenditures of federal awards. You are also responsible far the gyration of the other supplementary information. which we have been engaged to report on.in conformity with U.S.generally accepted acominlirg principles.You agree to include our report on the supplementary information in any document that contains and indicates that we have reported on the supplementary i iormatiom You also agree to inckide the audited Tfnarrdal statements with any presentation of fine supplementary irdormattcn that i nciides our report thereon OR make the audited financial statements madly available to users of the supplementary infonnaficn no later than the dale the supplementary information is slued with our repot thereon. Your responsibities include admowledgirg to us in the written representation lefter that(1)you are responsible for presentation of the supplementary i ft.. cn in acoo larice with GAAP;(2) 'Neat you befieve the supplementary irfswmaboi,including its form and content.is fairly presented in accordance with GAAP;(3)lhat the methods of measuernent or piesentaliah have not changed from those used in the prior peiod(or,dlfney have changed.the reasons for such changes);and(4)you have disok sed to us any significant ptiorns or interpretations underlying the measurement or presentation of the supplementary iilbrmatinn. 5 RESOLUTION#2013-119 a Management is responsible for estabishirg and maintaining a process far-backing the stabs Of audit Endings and recommendations. Management is also responsible for ideriffyirg far us previous financial auudis,atlEslailm engagemerds.perfornrance audits,or other studies related to the objectives discussed in the Wait Objectives section of this letter.This responsibility includes relaying to us conreetire actions taken to address skmilicant findings and recommendations resulting from those aucW attestation engages. performance audits, or sbndres.You are also responsible far provifeig managenneurs views On Our cunert findings.cormAuskm and recartanendaians,as wall as yaw planned aarrectiye actions.for the report and for the timing and format for providing that irfOrmaiom Auld Procedures--General An audit includes examining on a teal basis,evidence supporting the arnaunts and disclosures in the financial statements;therefore.our audit wit involve judgment about the number of tit msecdow to be exarnir d and the anies to be tested.An audit also includes(evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.We will plan and perkxm the audit to Obtain reasonable rather than absolute assurance about whether the financial statements are free of materiel mastatemerk whether from(1) erms.(2)fraudulent financial nepoidrug.(3)misappropriation of asset Or(4)violations Of laws or governmental regulations tot are attributable to the entity or to acts by nu magemeot or empkryees acting On behalf of the entity. Because the determination Of abuse is suhjec� Gaverrnment Audiug SEandards do not euepert arudhors to provide reasonable assurance of deteclirg abuse. Because of the inherent imitations of an audit combined with the nhererd lindtrrlers of internal ocintrol. and because we will not perform a detailed examination of all tram there is a risk that material misstatements or noncompliance may e)dst and tat be detected by us.even though the audit is properly planned and perfomhed in accordanoe with U-S.generally accepted audi ft standards and Goreimmarf AudOW Stanalarals.In addhiarh. an audit is not:designed to detect immaterial msstetematis or violations of laws Or governmental regulations than do not have a direct and material effect an the financial or major programs.How .w.we will 0 Am.. the appropriate level of management Of any nuderial errors.any fraudulent financial reicantinp.Or misapicro nation of assets that come to our attention.We will also nfexm the appropriate level of management of any violations Of laws Or governmental regulations twat come io err attention unless dewy no0nsequsrial,and of any material abuse that comes to our art nilic n.We will include such matters in the reports required for a ogle Audit.Our responsibility as auditors is im" to the period covered by our audit and does not extend to any later periods for which we are not engaged as auditors. Our Pocedues will include tests of documentary evidence supporting the transactions recoil in the ao®uuls, and died conirmaili rn of receivables and certain ad m asserts and I'rabiliies by correspondence with saleOted individuals,funding sources,c>recNors,and financial inesM utions.We wit request wide relvesentalim s from yap adomeys as pert of the engagemerr#,and they may bit you for responding to this mclary.At the corndusi©n of our audit,we will require certain written repeeserntafons from you about the financial steitanants and related matters. Arudiu)Procedu Control Our audit will include obtanirna an urnderstendling Of the entity and its a nvivnrrnent, ndudintt internal control. sufficient to assess the risks Of material misstatement of the financial stideyneras and to design the nacre.fining, and extend of futuer audit procedures.Tests of controls may be performed to test the effective Of certain controls Out we consider relevant to preventing and dedectig enars and fraud that are malarial to the financial staternenrts and to preventing and detecting mas#atemenLs resulting from illegal ads and Other noncompliance mantas thhat have a direct and materiel effect an the financial statements.Our tests,i pafanne d,will be less in scope than would be necessary to render an Opinion an internal control and. accordnAy. no Opinion will be expremed in Our repart ern inhrrnal carubd issued pursuant to Governmen(AudliftSiandards. As required by OMB Circular A-133 and if appicable Chapter 10.950 Rules of the Auditor General ral of the Stare of Florida, we will perform Less of canill over compliance to evalum the of ecaverness of the design and operation of controls Out we consider relevant to prevenng or e., g maraial rwnoompliance wdh computes rimpAns a nts applicable to each major federal andk r state award program_ However,our tests wit be less in scope than wand be necessary to render an opinion On those mrhkOls and. accordingly. no opinion will be expressed in air report an internal control issued pursuant to OMB Giro ufar A-133 and 0 applicable Chapter 10.I M Rules of the Auditor General Of the Stake of Florida 6 RESOLUTION#2013-119 5 An audit is not designed to provide assurance an internal control or to identify signTrard deficiencies or material wmom_ However, during the audit we will communicaEa to management and those charged with governance internal control related midlem that are required to be communicated under AICPA pro6ess;onal starrdartis. Governed Aracliffhq Sfandmic OUB Circular A-133 and if applicable Chapter 10.050 Mules of the Auditor general of the Stake of Florida. Auk Pcoa!dures--Compliance As part of obtaining reasonable assurance abort wttether the financial stallammts are free of material mrssademennt, we will perAxm tr>3tr of the QWs compliance with provisions of applicable laws, regulations. carrtracts.and agreernerds,including grant agreements.Hoaiever.the objective of those pr ac a urea wil not be to provide an opinion an overall eompiaroe and we will nd express such an opinion in our report an compliance issued pursuant to GovernmeW AudhV SYaodbnda. ONO Circular A-133 and f applicable Chapter 10.050 Imes of the Auditor general of the Stake of Florida r clu ices that we also plan and peifionm the audit to obtain reaganabie assurance abort whether the audde hm nomplied with applk=W tans and regulations and the provsons of aorntrad and gram agreements apphcabW to major programs.Our pnn cadures will consist of tests of transactions and ad appiraable pnxardures diescr eel in the 0h13 Gkodar A-13 Carpiiance Supplerrwd and i applicable The Flwkb Depatraard of Fraandaf Suvicen'Slifer PhVerds Canop6ance Sqop mot for the types of cornpienoe requirements chat amid have a tied and makeral efed an each of the Cityrs major programs.The purpose of these procedures will be to eripre is an opinion an the Cit%aurupianoe with requirements applicable to each of is major programs in our report on compliance Issued puasurart to OMB Onaular A-133 and t applicable Chapter 14.6W, Dulles of the Auciilor general of the State of Florida_ Ergagesent Admirsbabon,Fees,and[Boer We may from time to time,and depending on the circumstances,use third-party service providers in serving your account if the use of third-party service providers is being considered by our firm it shall 5nst be d6c ssed and approved in writing by the City imager alter ourfimr ciseoses the purpose,ruason and need for use of third- party service providers an this audit a nionoe pert We rrrav,share mrddential irdormefion about you with these service providers.but remain conrniil ed to meinlaiiing the mnfidediality,and sewriy of your mk mabNL Accordingly.we maintain Memel ponies,Procedures.and safeguards to punted the confides fi ty of your personal information.In addition.we will secure owrfdentialiy agreements with all service providers to maintain the confidentiality of your idsametinn and we will take reasonable precautions in determine that have appropriate procedures n place to puevent the unautirormed release of your co nidenid iniorrnaion to others In the event that we are unable to secure an appropriate omafalertiarkV aweemenk you wit be asked to provide your consent prior to the sharing of your codiderial information with the dar d-partyr service provide.Furthermore,we will remain responsible for the work provided by any such Owd-party service pavKbm We understand that your employees will prepare all cash.accounts receivable,or other cordrmaiiwrs we request and will locale,any documents selected by us for testig_ A1 the oorriusion of the engagement,we will complete the approprieke sections of the Dar Ceiection Form that summarizes rizess our audit Gudinps. It is mauepement's respansibifty to submit the rWmfiyup packmW (including financial stabernerds. schedule of gluts of federal awards. summary schedule of prior audit findings, auditors' report,, and correctim ardon plan) along with the Data Collection Faun to the federal audit d earinghouse. We writ 000rdiinate with you the electronic submission and certification. t applicable. we will provide copies of our report for you to include with the reporting padnage you will submit to pass-through entities. Tha Oats Cc Ibcian Form and the reporting pa#lge rust be submitted whin the errdrer cf 30 days afar receipt of the auditors°reports or nine nmrdlrs after the end of the audit period,unless a longer perod Is agreed to in advance by the cognizant or oversight agency for audits. You may request that we perfiarm additional services not addressed in this engagement IrJker fF this occurs,we will tssnmurkake with you regaining the scope of the additional services and the estinuked fees.We also may issue a separate engagemerd Idier cownrup the additional services. In the absence of any either written commurnicalion from us docuinrenting such additional services.our services will continue to be govemed by the terms of this eggagernent letter. The audit documenraticn far this engagismerd is the property of Harvey Covington and Thomas of South Florida. LLC.and constitutes confidential nformadon.However,Pursuant to authority given by lace or regulation,we may be requested to make certain audit docvmerrtaion available to federal or state agencies.or their designee. a federal agency providing direct or ndraeod funding.or the U.S.Government t Accountability Olfioe for purposes of a RESOLUTION#2013-119 a quaity review of the audit,to resolve audit fndirgs.or to carry out oversWd responsibaiffies.We will notify you of any such request If requested,access to such audit docuinerdwition win be provided under the supervision of Harvey Covigl n and Thomas of Sark Florida. LLC personnel- Furlhermae upon request we may provide copies of selected audit doomertahon to the afuemerrtioned parties.These parties may intend or dedrle,to dote the copies or information contained therein to athers,including other govarnnentai agdncies. The audit documerdation for this engagement mill be retained for a mi i nun of five years alter the report release dabs or for any additional period requested by a federal or stale agrrdcy. oversight agency for audit,or pass, through eilly. If we are nrrare that a federal awarding agency.pass4hrough erdlly.or audited is contesting an audit finding,we wil contact the perty(ies)contesting the audit finding for guidance prior to desbaying the audit doaurmeotabom We expect to begin ohr audit shortly afar Thanksgiritg,on or about December 9.2013 and lo ka-e our ir" draft of the Ckys amual CAFR on or about March 14m followed by Issuance of the Citi/s final, bDur d and published CAFR report no data than March 31.211114.Hervey,Covinglon S Thorrm of South Florida LLC shall p w&the City with at least rirenty- (25)bound,color copies of the Qdyy CAFR and shall also provide the complete CAFR to the Oily using ellackwic Adobe.pelf tie unmet.Roderick Harvey 6 the engigernert parbw and is responsible for supenisww the enasa a nt and sb nkm the repie or aYhQr{a'Ip an0lher indvtdual to sign them.Ourfees far these serAoes win be at our standard houdy rates plus out-af-pocket costs(such as report reproduction. word procPssirg. postage, copies, ielephane, ek:.) eu oW that we agree that our gross be, irmbifirg expenses,will be as feioaa SEPT 30, FIRA ICIaL FEDERAL.f STATE SRF PROJECIr STATEMENT AUDIT SIt111GLE ALIOff SPECFIC ALIT(eadn (ea IL per repot} prajeek if ) M3 $45.000 $2.500 3.2000 2014 M000 $z500 32.0W M5 $47.000 $ZBW 32.0110 2016' 34ELD00 $2.500 32A00 2"7• $40.000 :2.500 32.0W •two rbR aat oar-yrrw apllondt mr> - orwrhAaeb Our stardard hourly rates vary aocordnil to the degree of uesponsibiky involved and the euptrnardoe level of the peraso niel mined to your audit.Our invoices for these fees oil be rerdaed each month as work progresses and are payable an presentation.In accordance wulh our frm pelotas,work may be suspended if your account becomes 30 days or more overdue and may not be resuaned until your account is paid In U- If we elect to lien. net*our services for nonpayment,our enpaaamart will be deemed to have been completed upon writer nolificadon of termnabon,even if we have not completed!our report(s).You hall be obligated to compensate us for all time expended and to reimburse us for all out-of-pocket costs thraun h the date of taminabon.The above fee Is based on anticipated cooperation from yaw personnel and the assumption that unexpected circumstances a cos sill nol be encountered durinn the audit If skViificant additional tine is necessary,ire will discuss it with you and arrive at a new fee eshmmale before here incur the additional costs. g RESOLUTION#2013-119 7 Eaaitd+r Relief.Tersiiratian and Notice (a) ova Rerned�es The Cary agree that it would be in possible or i:adeq mite to meeasme and calculate tine HCTSPs danne®es tom any bead of the©overnant. Accordim ft the Ciy agrees that 9 it brandies any of the covenants. HCTSF will have available.in addition to any other right or remedy av=IWWe.the right to obtain an injunction from a court of competent jurisdiction reshainng such breach or d manned bread:and to specific pafiorman ce of any such pnmisim of thn Agreement. The City fiuriher agrees that no bad ar ather security shall be required in obtaining such eWmble refef and I hereby consort to the issuance of such rqurrdon and to the urde►ine- (b) Temhitiatien by tlrr+C�Y. A. Term-rdatoh by the Cry Far Came. 1. The City may temifate the C:tnMat IF Harvey.Covington&Thomas of South Florida,LLC where Harvey,Ciavincjbdn&Thomas of South Florida LLQ a. persistently or repeatedilr r A m as or fails to supply a Kmo properly skilled wodders or proper equipment or fats to adhere to the schedule edablidied as adjusted from time to time pursnuarf to the tetras of tkis Areernent;or b, ifivegands laws,.off,or rules.regcia toms or orders of a puobk authority favin9 jtmimiictiim6 nejnding QY;or C. otherwise Is guilty of suhstarilal:breach of a provision of this Agreement. 2. tMnan airy of the above masons exit the city,uupdn a ertif cation that mAdmit came odds to justify such action,may without pmpaclice to airy other rights or renueifies of the City and after giving Harvey, Cnviugton&Tihdrnuas of South Flrridb LLC,Clive Thirty(30)'days'written notice,WmwwhM aridloymed of Harvey,Cmiugton&Thomas of South Florida LLC, (e.)Written Nahm A. Wheuevrs'mV party clad es tan give nuoF- W the other par r i must be given by written n ubm- sent by UY,f1 Stets mail,cabbed ret rn reoept requested.add to the party for whhnn it is id+an I . The pis for giving of r mbm shall remain as set fierth below until Whey sl uill have been charged by vatt ehh notice in li wih the prov6id■s of Whit paragraph. For the prsen4 the C ky the Mowing as the resgrechm pegs and plaids for the giving of rnatiae: Ownses Reprimentative: Robert Baldunr Coy Manager City of Dania Beach,Florida 100 West Darla Beach Boulevard Dania bleach,Acrida 33004 Mr. Thomas Msfiro,City Adtomey City of Dania Beach.Florida too YYest Dania Beath Bouuloevard Dania Beackti Florida 330M CRy: Mark Bad,Rnan ce Direr, City of Dania Beach 100 West Darla Beach Blvd, Dania Beach,Fl- 33004 Auditor- Harvey Cbvingbah&Thanes of South Florida tLCw AtWn:Roderick Harvey CPA.CM(a*) Adder 3816 Hollywood Boulevard,Suite 203 Suite 203 Hollywood,Hoida 33021 9 RESOLUTION#2013-119 l�t Aurf6ng Siandards requie that we pnawide you with a copy of ow most recert e>demal peer review report and any leper of commes,and any subsequent peer review repot and kites of comment receiwed during the period of the contras. Our Stitt]peer review report accompanies this leber. This enpagemwt letter wM will aulornetscaliv renew to a period of three(3)vears udess canceled in writing by ether party.and addbn u lit alUM for trio separate annual edemorrs subject to the city Camnn®on approwal. We appreclelle the opporbinity to be of service to the City and believe this letter aaaaately summarizes the signnft nt terms of our en gogenent If you haws arty questions,please let us know.9 you apnea wdh the ha.ns of our engagenert as described in this lather,please sign the enclosed copy and rebrn t to us. VeFy yoras. Harvey Cowirrpton and Thomas of SmM Florida.LLC RESPONSE: This other carecily se forth the mbmtanding of the City of Dania Beach. Management sigtnehue: rdne: Date: Gawenance signalure: rde: tears: 10 RESOLUTION#2013-119