HomeMy WebLinkAboutR-2017-088 Authorizes Second Renewal of An Existing Agreement & Amendment To the Financial Audit Engagement Letter for An Additional 1 Year Period with HCT Certified Public Accountants & Consultants RESOLUTION NO. 2017-088
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA, AUTHORIZING THE PROPER CITY OFFICIALS TO
EXECUTE THE SECOND RENEWAL OF AN EXISTING AGREEMENT AND
AUTHORIZE THE PROPER CITY OFFICIALS TO EXECUTE AN
AMENDMENT TO THE FINANCIAL AUDIT ENGAGEMENT LETTER FOR AN
ADDITIONAL ONE (1) YEAR PERIOD WITH HCT CERTIFIED PUBLIC
ACCOUNTANTS AND CONSULTANTS, LLC, RELATING TO THE CITY'S
ANNUAL FINANCIAL AUDIT ENGAGEMENT; PROVIDING FOR
CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS,City officials executed an Agreement with HCT Certified Public Accountants
and Consultants, LLC on September 13, 2013; and
WHEREAS,the initial Agreement provided for two(2)one(1)year renewal periods for the
requested services, subject to the approval of the City and HCT Certified Public Accountants and
Consultants,LLC;both parties have agreed to continue the existing services for the second one(1)
year renewal period for the not to exceed amounts as follows:
• Forty One Thousand Two Hundred Fifty Dollars ($41,250.00) for the annual audit
• Three Thousand Five Hundred($3,500.00) for each Single Audit
• Three Thousand Five Hundred($3,500.00) for each State Revolving Audit; and
WHEREAS, the Director of Finance is recommending the existing Agreement with HCT
Certified Public Accountants,LLC be renewed for a one(1)year period for auditing services for the
fiscal year ending September 30, 2017; a copy of the amendment for the second one (1) year
Renewal is attached as Exhibit"A",and made a part of and incorporated into this Resolution by this
reference;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH,FLORIDA:
Section 1. That the foregoing"Whereas"clauses are ratified and confirmed as being true
and correct, and they are made a specific part of and incorporated into this Resolution by this
reference.
Section 2. That the proper City officials are authorized to execute the Second Renewal to
the Agreement dated September 11, 2013, which Renewal is attached as Exhibit"A", and made a
part of and incorporated into this Resolution by this reference. The City will pay HCT Certified
Public Accountants, LLC an agreed upon sum in an amount not to exceed the amounts as follows
during the second one (1)year renewal period:
• Forty One Thousand Two Hundred Fifty Dollars for the annual audit($41,250.00);
• Three Thousand Five Hundred($3,500.00) for each Single Audit; and
• Three Thousand Five Hundred($3,500.00) for each State Revolving Audit.
Section 3. That the City Manager and City Attorney are authorized to make minor
revisions to such Renewal Agreement as are deemed necessary and proper and in the best interests of
the City.
Section 4. That funding appropriations are planned for and are available in the City
City's Fiscal Year 2018 in the Accounting and Auditing Services Account #32-10 among the
necessary various funds.
Section 5. That all resolutions or parts of resolutions in conflict with this Resolution are
repealed to the extent of such conflict.
Section 6. That this Resolution shall be in force and take effect immediately upon
passage and adoption.
PASSED AND ADOPTED on August 22, 2017.
ATTEST:
p S_F'��
LOUISE STILSON, CMC TAMARA JAIS
CITY CLERK MAYOR
ATED 19�`
APPROVED AS TO FO /� CORRECTNESS
THO S J. AN 13
CITY ATTORN Y
2 RESOLUTION#2017-088
SECOND RENEWAL OF AGREEMENT BETWEEN
THE CITY OF DANIA BEACH, FLORIDA,AND HCT CERTIFIED PUBLIC
ACCOUNTANTS AND CONSULTANTS, LLC
This is the second and final Renewal of an Agreement(the "Renewal"), which Agreement
dated September 11, 2013 (the "Agreement") exists between the City of Dania Beach, Florida, a
Florida municipal corporation(the"City")and HCT Certified Public Accountants and Consultants,
LLC ("Contractor") for annual auditing services. A copy of the existing Agreement is attached as
Exhibit"A",which is made a part of and incorporated into this Renewal by this reference. The City
and Contractor wish to renew the Agreement for one(1)year for the annual audit for the City's fiscal
year ending September 30, 2017.
In consideration of the mutual covenants,terms and conditions contained in the Agreement
and in this Renewal of it,and for other good and valuable consideration,the adequacy and receipt of
which are acknowledged and agreed upon, the parties agree to the following:
1. That the existing Agreement that was executed on September 11, 2013, is renewed
and it shall remain in effect until completion of the September 30,2017 fiscal year-end
audit.
2. That the terms and conditions of the Agreement dated September 11, 2013, will
remain the same throughout this Renewal.
3. The not to exceed costs of the one(1)year renewal are amended to read as follows:
• Forty One Thousand Two Hundred Fifty Dollars($41,250.00)per year for the annual
audit;
• Three Thousand Five Hundred ($3,500.00) for each Single Audit; and
• Three Thousand Five Hundred ($3,500.00) for each State Revolving Audit.
4. That in all other respects,the Agreement is ratified and reaffirmed and remains in full
force and effect.
3 RESOLUTION#2017-088
IN WITNESS OF THE FOREGOING, the parties have executed this Renewal on
, 2017.
CITY:
CITY OF DANIA BEACH,FLORIDA,
ATTEST: a Florida municipal corporation
LOUISE STILSON, CMC TAMARA JAMES
CITY CLERK MAYOR
ROBERT BALDWIN
CITY MANAGER
APPROVED FOR FORM AND
CORRECTNESS:
THOMAS J. ANSBRO
CITY ATTORNEY
4 RESOLUTION#2017-088
CONTRACTOR:
WITNESSES: HCT Certified Public Accountants &
Consultants, LLC, a Florida Limited
Liability Company
Signature Signature
PRINT Name PRINT Name
Signature Title
PRINT Name
STATE OF FLORIDA
COUNTY OF
BEFORE me on ,2017,personally appeared ,
as of HCT Certified Public Accountants & Consultants, LLC a Florida
corporation,who acknowledged execution of the foregoing Extension to the Agreement for the use
and purposes mentioned in it, and that the instrument is the sole act and deed of the Contractor.
Such person is personally known to me or has produced as
identification.
NOTARY PUBLIC
State of Florida
PRINT Name of Notary
My Commission Expires:
5 RESOLUTION#2017-088
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 City Commission established a ranking of City financial audit proposals
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:
G�
LOUISE STILSON, CMC W R B.DUKE,III
CITY CLERK MAYOR
APPROVED AS FO AND LEGALITY Is FirG
THONbA J. SB
CITY ATTORNEY
2 RESOLUTION#2013-119
INI
-.Er-,Ficd NAI'r n eeaunron s Corst�h:r-rs
September I I.2093
To The Honorable Mayor,Cmmrnnssion and City Manager
City of Dania Beach.Florida
100 West Dania Beach Bouiewmd
Dana Beach,Florida 33004
We are pleased to confirm our understanding of the services ere awe to p, the City of Duna Beach,Florida
(*m'+City')for the yeas ended September 31X 2013.2014 and 2015 with Into,separate one-yes options for
rmewal for Septernber 30.2010 and 2017,subject to written A*m%W of both parties.We w8 audit the financial
statements of the gon+ernmental actirbes. the business-type adivilies. each malor fund. and the aggregate
rernavng find indonna lkim induding the. notes to the financial statements.whichhcollectivelycornpraelhe
basin fnanciai shofar rents and the General Employee Pension Plan.of the City as of and for the yeas ended
Sq*mnber 30.2013.2014.2D15 and if the two year optional renewal is emerciisad.Sapternnber 2g19 and 2017-
ArmuctiM standards generally accepted in the Unload Stales of America prow de for certain required
supplernerrtary informu lien(RSi), such as manegernart's discussion and analysis (MObA),lo suppl rnent the
Cis basic financial skaternerds. Such idormumhw. althmgh not a part of the basic financial stands, is
required by the Governmental Accounting Standards Board v io considers it to he an essential pat of financial
reporting far plating Om basic finarial statmmds in an appropriate operationat,eeonomnic,or historical context-
As pert of our engagerneht,wed apply certain far procedures to the Ciy's RSJ in accordance w A auditing
standards gruffly accepted o the Untied States of America.These faulted preaeduaes will cormsd of m*m ies of
managanraht mgading the.wed of preparing the adanmemn and cenpmmg the rdvmamn for corsisieny
wdh managemnenrs,responses to our inquirim the basic fnarmn]staternennls.and other k omledge we obtained
during our audit rt the bade financial shAmne cls.Wed not express an opirivr or provide any assurance on the
information because the(inn" pircmdures do not provide us with sillicie nt evidorme to empress an opinion or
provide any®u.pncia The kAouring RSI is required by generally accepted mccoudir1g prinnciplhe and will be
subjected to certain tan limited procedures,but w7 teat be audied:
1) Managements Discussion and Anatysm
2) Budgetary Cormpanson Scheduk5-Caeneral Fund and Canmu:ityr Redetelapnwd Agency Fund
3) SdneNdes of Fun cling Prowess-General EmplrryWs Permian Fend.Police and Frefightes Pension Fund
and Other Pad Employment BeneEts-
We have also been engaged to report an snpplemenay idamation other tun RSI that accompanies the City"s
i:nancel staiernahts-W e wet s bpd the t 3lkmo q supvplenentahy k farnwhan to the auduting pmcedums applied in
our audit of the thin wmW statarmesnls and certain additional procedures,indmina eon**nV and recon ci ft such
kformahon diecMyfin the underlying moccudirM and ad records used to prepare the financial slelernerds or to
the financial stalerhnents themselves, and other additional procedures in accordance with auddinp standards
generally accepted in the Untied States of Ameica and will provide an opinion on it in relaen to the fr wmal
statemrahm as a whole-
1) Schedule of Expenditures of Federal Amards(and State Fnaxial Assrfanee).
2) Canbining Inrdnidual Nonnwpw Fund Rnarndal Statements and S&mdules
3) Budgetary ConnpardanSdnedWes
The folowiV other infmnnakkn acoompanying the financial stat$nenYs wall not be subjected to the auditing
prooeames applied in our audit of the financial staterne>nts.and cur auditors report Will not provide an opinion or
any assurance an that other irdom+ativn.
1) Introductory Section
2) Statistical Irdortution Section
I
3 RESOLUTION#2013-119
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Audit ObjecOwes
The objeefrm of our audit is the expression of opnians as b weer your basic Suff al stallanierts are fairly
presented.in all maherial respects.in cankmNty with U.S.anneral y accepted accou nli m plin iplas and to report
on the fairness of the suppiernentary iformabon mimed b in Vie second paragraph when considered in relation
to the firum air statements as a whole.The ahjec firm also includes reporting
on—Internal control related to the finandai statements and cornpiarnee with the provisions of laws.regulations,
contracts.and grant agnm7m n is.ronoorrpianoe with wrhidn could hate a material effect an the financial
statements in accordance wah Goverraned AurQiig Standards.
• IMemal conk related to mapr programs and an apvran(or dsdainer of opinion)on compiance wriih
tars, regulations, and the prov®ats of ocrtraets or gent aweemeras dud could have a deed and
material deed on each major program in acoordahee with the Single Ault Ad Amertd serfs of 19M and
OMB Ciaiar A-133.Audis of Sf fisz,Local Govewrranhk and Mort-Proit 0garmetwo and if AVicabie
Chapter 10MD.Rules of the Audior General of the State of Roida.
The repots an ntrnal oaivoi and ocrnpforrce will each archde a paragraph drat states that the purpose of die
report is solely to desanbe(1)the scope of testing of emrrd cannel over fna cid repardtg and co plianoe and
the result of dint tes6hp and not b terohrce an opinion on tree effectiveness of iutrrul mnid over fra vial
reporting or an compimmm. (2)the scope of telling naval a l n over aompiaeoe for major programs and
odor pogram compiauoe and tut result of did ienii i and to poride an raitian an aarpianoe but not to
pnxide an opuron on the efiercverress of honor axatrml aver oorpianoe,and(3)fled the report m an iriogral
pat of an audit performed in accordance with GoveininandAuditing Shralwnals in considering irtemat axtrd over
fnan®I nnpo hi and compliance ad OlfB Gorton A-133 in aons;dring ir(errag oordi over aorrpiaeoe and
major program cormpliance.The paragraph will also stela the the repot 6 red suiabla for a ny odur ptrposa.
Our aait will be mn&u in accordance with ardsung stadads gwmaiy in the lknvb•d Slates of
Ameaim the standards for financial audils oanlained in Gobern red Aluci erg SbM ds. issued by Ow
Canptrolior General of the Unillad Stag line Svgk Audit Ad A men i emirs of 1996,and the payedots of OMB
Cicdar A-133 and if onplem le Chaps MaW Rules of Mee Auditor General of the State of F{brida ad Mil
iedude tests of accounting rends,a delan.iudon of n ury programs)in a000n laeoe wilh OMB Cioular A-133.
and if appbmWWe Chapter 10.WD Rules of the Audiirr General of tint State of Flvida,and olhr pnoowr res we
consider necessary fo enable us to arpress such opinions and to radr the required relpa>s.We c a nnot provide
assurance that raaMmdTld oprnions w0 be expresseti Cicumsta1015 may anise in whidl it a necessary for us to
madly our opiure;or add emphash-af-ndler or c6rv-cinder paragraph N our opieb on the financial
slatennents or the Sitde Audit nampianoe opinions we adw than urrndred.we will dvaaas the remxm with
you in advance.1.for any reason we R uutle to coepitie the audit or ate unable to kwm or hate not formed
opiniorE we troy dame io mq ress opinions ar to 69!a report as a result of this er gageanenL
Management W—
Management is responsible for the basic fnancial statrnank,schedule of expendlihnies of fedon anairds.and al
accompanying iufornution as wel as al reprieserrtaiens contained therein Maugement is also nmWonsible for
idlar"Wiuo government award proonares and undraandkv and comoM no wiMh the comp6ma requharnreWm and
for preparavtion of the sdwdrie of awrwiiures of federal awards and stale financial a mmtu nr-in accordance
wrih the requwan wft of OMB Cioular A1-133 and if apoicaBAr Chapter 1 aOW Riles of the Auditor General of the
State of Ronda As part of Mne audf,we wit assist with pepaalion of your financial sbdemrls,schedule of
expendiftwes of federal awards. and relalcd noes You will be revered to advhawkdoe n ifne whirler
representation leper one assistance with preparation of the fnancial shimrenL and schedu_be of expenditures of
federal awards (and .State Financial Asismooe) and that eau have rewkeved and approved the finauhtl
stale h sdmedde of experrdMtres of federal awards(and State FffwKuW Asmsla ia..),and related notes prior
to tine's issuance and have acospled responsrbfdy far fheot.You agree to assume all menarrmerd repoo illities
for any nonauk services we povide:oversee the servioes by designating an ndni kcal.preferably from serum
manapanent.who possesses suilahle skit knowledge,or experience:rience:evall.ore the adequacy and rmlls of the
services;and aoogA responsftfiy for them.
64wisia in"is responsble for esmt>ilistrmg and maintaining effective vrtennal corrols.n kxkv iubrnal arrioals
over complame,and for evaeluatng and nvxv onng ongaiing arm to help ensure that appapriahe goals mid
objectives are met and that there 6 reasonable assurance than pvveronent prorsams are admairsinwed in
compliance with eompiance requremernts, You are also responsible for the sekr*ah and appiraien of
4 RESOLUTION#2013-119
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aaoosbng principle-for the preparation and fair ptese nt"m of the trnandal stiolemets in mslormily ndtn Us.
gerieraly arxepte! accenting prindples and for compliance with applicable leas and regulatorns and the
provisions of contracts and grant agreements.
Management is also responsible for melon ail fnancial recol and related rdiannation available to us and for
ensuring that management is reliable-and financial infi maation is raliable and property recorded.You are also
reslartsible for providrg us rdh(1)access to all idernnafion of whteh you are aware that is retevarnt to the
preparation and fair presentation ofthe linarnual stedecnents.(2)additional iniormation that we may request for the
purpose of the audit. and(3)unesbicied access to persons vadoh the government from whom we detenrurie it
necessary to al lm auck evidemc e�
Your responsibilities also incude identifving saniflcant vendor relationships in Wild the vendor has responsibility
for program compliance and for the accomW and completeness of thud i Axinaiwn.Your respambiiies include
adlustng the financial statements to earned malaial mristahnnervis and conirrneng to us in the written
representation leller that tine effects of arty uncorrected missleilivmerts aggiegaled by us during the current
engagement and pertaining to the latest period presented are immatelal,both ndivaluaty and in the aggregate.
to the financial statements taken as a wfnole
Yaw are respornsibla for the design and inplarnentation of programs and rwrnbuls to prevent and detect tiauf,and
for aivnviip us abed all known or suspected frail atfeaft the government irrofrig(1)management, (2)
employees idw have sUndimant ides in irdemal ooerb .and(3)othes where the Bard aculd have a material
effect on the fina,xdal slwlemerdsL Yaw responsibilities include idaming us of your krawiecdge of any f alegaioru
of Barad or suspected Baud adfec hi ng the government received in communications Uom employees.es. former
employees,grantors.regulators.or others-In acki ion, you are responsible for ideitll i'M and ensuring that the
entity cone fries with apgfcable laws.mgulait-is,nartr-rcts,agreements and grants,4ddionally as required by
OMB Craiar A-133 and i applicable Chepler 10AW Rules of the Auditor General of the State of Florida,it is
managements responsbity to folow up and take corrective action an reported aclit fndngs and to prepare a
surnm ry schedule of prior unit findings and a corrective action pdam The suormayr schedule of prior audit
fnangs should be available for our review on err around November 8,2Q13-
You are responsible for preparation of the schedule of expenditures of federal mends (and State Finvi natal
Ate)in conformity with OMB Circular A-133 and i AWirabie Chapter 1 CLOW floras of the Audibr General
of the Stare of Florida.You agree to inside oar report on the schedule of empendiaes of federal awards (and
slate fnern®i assisience)in any document to d contains and narrates that ve there rep,, iei an the schedule of
expenditures of federal awards.You also agree to incihde the audited fnsriial statements with any pnerertel on
of the schedule of expenditures of fad eat awards that nckdes car report thereon OR snake the audited financial
steterrreris ray available to initedad tsars c the scwdula of axpmvfbres of federal aveartk no lacer than the
date the schedule of expenditures of federal awards is issued with err report thereon. Your morns-bilibes
iuiude advoudedging to us in the in got representation letter that(1)you ere rem-tile far presentation of the
schedule of tonperndturres of federal awards and state financial assistance in wocarde nrr wdh OMB CirolarA-133
and W appicafle Chapter 10-gill Rules of the Auditor General of the Stale of Florida;(2)that yew believe the
schedule of expenditures of federal awards(and state finaruaal assistance).nerdnp is farm and content,is fairy
presented in aoaerdonce with OMB Qrcrula A-133 and if applicable Chapter 10.050 Rates of the Auditor General
of the State of Ftorpda:(3)that the inn dlhods of tnnasuremenit or presentation have riot changed Bamh those used in
the prior period(err.d they have charngad,the reasons for such charges),eat(4)you have disclosed to us any
signiftent assumplors or inierpretabos undetyM the measurement or presentation of the schedLie of
engrerhdibues of federal awards.
You are also responsible for the preparation of the o2w supplementary inhumation. ■hush we have been
engaged to report on.in conformity wriW Us-gerierally accounting Pam-You agree to irriude our
repot an It*supplementary ift..atioh in any dodrnent that contains and ndralas that v e have uepaad on
Bhe supplanwn Lary nfon uffor You also agree to inckide the audited tinandal sI ene with any presentation
of the supplementary irdarnwGan that nrirdes ewe report iherwon OR am"the audited firwndal r:tetwrrrrrrs
readily available to users of the su pplertteMayr rdw mation no later than the dale the supplementary in(vmation is
issued with our report thereon- Ycer rspmnsbniiies include adonoadedpmq to us in the writan representation
larder that(1)you are resporisibfe for presentation of the supplementary infannaticn in acoordance with GAAP,(2)
that you believe the suppienertay ihfarmaim inoludng its farm and eQrtent,is fairy presented in accordance
with GAAP:(3)that the madvids of maasueme t or press Cation have not charged from those used in the prior
period(or,i they have changed.the reasons for such changes):and(4)you have disclosed to us any significant
asshanptions or interpretations underlying g the meamrernent or presentation of the supplementary khkwn=k n-
5 RESOLUTION#2013-119
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Mafagennent m respo nsble Torestabishng and mairmnng a process fortraduirg the shwa of audifirdiugs and
reciummendatirns. Management is also responsible Tor dentifyvg for us previous financial adds,allEsW t
engagernerats perfornranoe audits,or odw studies related to the objectives discussed in the Audit Objectives
section of this le err.This responsibility inckudes relaying to us eonec five actions taken to address siMp rkwat
fixings and recargnendebons resulting from those andits, attestation engagements, performance audits, air
studies.You are also responsible for pr vidng marapnnarCs views an our amen findrW.corricksicrs,and
recommendations,as well as your planned corrective acbo s.for the report and for the tinting and format for
pruxtdrug that infixmatim
A udd
An audit inchdes exams iaML on a test bases,evidernoe supporting the arruxa is and cisdo®ures m tNe financial
staternerrts;thaebre,err audit roll involve judgment abort the rnxnber of transacdorn to be examined and the
areas to be tested.An audit also includes evaltaing the approprieterkes of accounting prides used and the
reasonableness of siyndicant a000urrtirg estimates made by n a averment as well as evakreting the overall
presentation of the financial stalemarFs.We will plan and perkxm the audit to obtain reasonable#alter#hare
ahsofite assurance abort whether the financial statements are free of materiel mesiatenenk whether from(1)
enors,(2)hardurient financial repo tinq.(3)misappropriation of assets,or(4)violations of Iatas or governmental
mquiaiorus that are attributable to the entity or to acts by management or employees ad-rug an behaf of the entity
Because the determination of abuse is subjective, Goverment Aud�eug S16andardi do not expea audhors to
provide reasonable assurance of deheclag abuse.
Because of the sheen initatoms of an audit combined with the iiheren lrnitrtiors d intarul con*cL and
because we will not perform a detailed examination of all transaclons,there is a risk that maiaial rtosstaaaneruls
or noncampionce may exist and not be deleted by us,even though the audit is prtpely planned and Pafonned
in accordance wih U-S.gerueally accepted audhuV stardards and Gowerrmrnf AudMV Standard&In addtim,
an audit is not designed to I I I irmnateriai missmlrome nts or violations of Iars or governmental regulations that
do not have a direct and material effect an the fnauYal statements or major pnWwas-H mwww.we d ifdm
the appropriate level of manaaa ment d any material errors.any frauddent fmanaiaf reporting,or misappropriation
of wells that come to our adenlion.Wed also-dorm the appropriate level of rrwnagenen of any violaboas of
Lars or governmental regulations that come to our Me r6on unless dearly ioonseque dat aid of any material
abuse that comes to our afteratiorL We wll ndude such matters in the reparts for a Sirple Audit Our
responsibility as auditors is imited to the period covered by our audit and does not extend to any hater periods for
rrhid we are not engaged as auditors.
Our wooeduaes vdil include tests of doaanadary evideroe supporting the transactions reraded in the aomuras,
Wild direct confirmation of recervables and certain o6w assets and I'rabdAws by oonespanda+oe with suleclud
individuals,furling spumes,creditors,and inaudd institutions-Wed request millerm represenkabors from your
adomirp as pat of the ergegernerit and they may bill you for responding to this inquiry-At the conclusion of our
audi,we will require certain written representations fnan you about the fnarmdal sfabemurnts and related metiers.
Audit Control
Our auuiZ will endude obtaining an uaderstonang of the entity and its ernaronumnt, inulutfirm interaral control,
sufficient to assess the risks of malered misstatement of true financial statements ad to design the nature.timi g
and exterd of hriw audit procedures.Tests of co nrols may be performed to test ttme d%chweness of certain
eoalrols that we consider ruAevant to preverdirg and delectig errors and baud that are material to the financial
statements and 10 peverntirg and drdamjng mss3aterrnelrts resting from illegal ads and other norw mpia oe
mallets that have a dyed and material effect on the financial statements-der tests,if performed,wit be less in
scope than would be necessary to render an opinion on irtanal corrhot and accordirw*. no opinion will be
expressed in our report on internal crrrtrd mw pursuer*to Governmerf Auclii6rg SfantladaL
As required by OMB Cinaular A-133 and if applicable Chepmr 10-5W Rules of the Auditor General of the Stan of
Florida, ire writ perform tests of eonbale over compia ce to ewaluare the effincidveness of*the dedpu and
opera Lion of corrals that we consider-relevant to preventing or detecting material noncompliance with eompiance
reyuienaents applicable to each major feral addor star arced program- However.our tests will be less in
scope than would be necessary to render an op wn on thane controls and. acvordirgly, no apirorn will be
expressed in err report an internal control issued pursuant to ONE Grata A-133 and t applicable Chapter
1 CM Rules of the Audhor General d the State of Fbrida
RESOLUTION#2013-119
5
An audit 6 not designed to provide assurance an internal antral or to iderdify sig nilkwrt deficxwocies or malerial
weaknesses. However, dreg the audit, we will aanrmnioabe to management and tmzm charged vrdh
governance internal control related coders That are required to be communicated under AICPA prollimional
sti lard%Gouermmert Audr6rq SYarrdada,OMB Circular A-133 and if applicable Chapb±r 10-WO Rules of the
Auditor General of the State of Florida.
And
As part of obtaining reasonable assurance about whether the frontal stananents are free of material
mastatemen,we will perform lests of the CAy's mmpiance wiOn provision of appicabie Iri m reyrietons.
Boob ,and agreernenL%including grant agreements.However.the objective of fti se prooWures will not be to
Provide an opinion on overall convkm m and we will not express such an opinion in our report on compliance
issued pusuanttoComemnrendAudi gSYamdwda
ONO Circular A-133 and if appicable Ctuipter 10_t M Rates of the Auditor GermYal of the State of Ronda req ies
That we also plan and perform the audit to obtain reasonable assurance abort whellm the auolitee has complied
with appfrable news and regulators and The provisions of cornhatis and grant agreements applicable to rreajor
Programs.OW procedures will oorhsi 'of tests of transactions and ad applicable procedures described in the
OW Cft&rA-13 Carpiaace S eplenentand iapplicable The Ratite DgoarSruuad&Fkw mmW Swvwee'State
Pnyecim Cong6ance Stgopieme rd for the types of oompianne requirements dud could hove a died and material
efta an each of the City+'s major programs_The purpose of these procedures will be In mgxess an opinon on the
Cityvs eornpia oe with requirements applicable to each of ills major progrsns in our report on compliance issued
pursuant to OMB Circular A-133 and i applicable Chapter 10.13M, Rules of the Auditor General of the State of
Florida_
Engagement Admiuisba im,Fees,and Ober
We may from time to Erne.and depending an the circurnstanoes,use third-party service providers in saving your
account g the ore of ftd-party service providers is being considered by our fi ru,it shall first be diseased and
approved in uvbV by the Cely frfarager ahter orfarrn diseases the purpose,reason and nerd for use of ttmird-
party service provides an this audit fl claoenatt We may share confidential irrdomation about you with these
ser Aoe provides.but rennin commiMed to..0 iya'roug The corride hWty and semrky of yam iskwm mbmt
Amordingly woe maintain Memel peicies,procedures,and safeguard,to protect the conidentsity of your
personal wdbffnaticn_In addiou,we wit seam mrddentmW agreements with all sennoe provides to nuwdm
the mdidinrtiaity of your edramefin and we will take reas ruble precautions to deierrnihe that they have
appropriate procedures in place to prevent ire unaoimxi ed release of your congdedah ii<armmhon to offerers.In
tee eventthet we rive unable to sere an approgidale aonfalantiaity agreement,you will be asked to Provide fear
consent prior to the sMnng of your cordiidenFal iubumaeion with the th wd-party service provider_Furtfaerrnore,we
will remain responsible for the work provided by any such third-party sane providers_
We understand the your employees will prepare all caslh,accounts receivable,or adw mnfrma dons we request
and will kacaie any documents selected by us for lastng_
At hue aorrdusio n of the engagenmrd,we will complete the appropriate sections of the Data C Semen Form Our
sumnaires our audit fzxkWL It is manapemenCs responsibility to submit the reporting package ifincludirM
fnancul statan yds. sclnedule of expermMures of federal awards. sranmury sdwdule of poor must findings,
audicirs' reports, and corrective arhon plan} along with the Drila Caiectm Farm to the federal aural
clearinghouse. We will coordinate vilh you the electronic su bmissm and eertiirwtione If applicable- we will
provide copies of our report for you to include with Ore reporting pale you will submit to pass-ttaough errtoes.
The Data Colkncim Form and the reporting package moat be submtlad wulhire the madwr of 3D days afar recegt
of One audlors'reports or dote morihs alley the end of the audit period,unless a knger period 5 agreW to in
advance by the cogrm;za nt or enersort agency for audits.
You may request that we per Far. additional services not addresed in this engagement Idler_If this oocus,we
will canrmumicale with you regardirg the scope of the additional services and the estimated fees.We also may
issue a separate engagern wrt letter covering the additional segues. In the absence of any other wrian
commnanic-fion from us documemtig such adddonal servirnes.our services will continue to be governed by the
terms of this engagement letter.
The audit docanentafim for the angaganart a lithe property of Harvey Covington and Thomas of Sexdh Ronda,
LLC.and consibr0es cordderdiel information.However,pursuant to adhorily given by inn or regulation.we may
be requested to make certain audit documentation available lo federal or state agencies or their designee. a
federal agency prwidwhg direct or indirect Rxxirg,or the U-S Government Accountability CSNiuoe for purposes of a
7
RESOLUTION#2013-119
fi
quay ra dew of the audit.b resolve audit fndrgs,or to carry out oversight responhsibniiiies.We wit notify you of
arty surch request if requested.access b such audit doamerd0tim Will be prcrrided urdr the superman of
Harvey Cwhrgbn aid Thomas of South Florida. LLC personeL Fufhermcm upon rw*mst,are may provide
copies of selected audit domimeilabon to the afore nenioned parties.These parties may whor4 cw seise,to
d the copies or information contained therein to dhers,including oche garernme W agencies.
The audd dowmretation for this engagement will be rationed for a n"nun of free years after the report release
dale or for any additional period requested by a federal all stale agency. —wsk tt agency for audit,or paw
duough entity_ If we are ware that a fedenl awarding agency.pass4hrough erriy.or aoudrlee is contesting an
audit fining,we wit eontadt the ps*ies)cordestvg the audit fkxWG fix guidance prior to destroying the audit
decumnentabon_
We erect to begin our audit steartgy arlbr Thanksgivig,on or abed December S.2013 and to sue our idial
draft of the Ciys arnuad CAM an or about March 140'followed by issuance of the CiWs fnA bound and
published CAFR report no haler fern March 31,20t4.Hovey.Covington 3 Thomas of South Florida LLC shall
prwide the City wiMt at least bon ty five RM borxt color copies of the City CAFR and shall also provide the
complete CAFR b the City using decdronic Adobe cast fie fdmat.Roduft Harvey is fee engapernent prbrer
and 6 responsible for supelr6imp the enanae meht and saninp the reports or all horwihQ arK*wr■idimdual to
sign then_Our fees for these services will be at our standard hourly rate,phis out-cUpodret ants(such as report
reproduction. wand processor. postage- copies, telephone, ale.) except feat ere agree that oar grass te-
ihdrtirg expertses,wit be as Wovr
SIFT 30, FWANt3IAL FEDERAL/STATE SRF PROJECT
STATH6fT AUM SR1113 E Al1O(T WECFIC AWIi Omb
Ivacr Per fir$ project if alpichfe)
2M $45.000 $2= $.2000
20U $48A00 $2.500 $2.000
20t5 347AM $2.500 32.000
2r1C' $48.0W $22.500 320M
2H7* $40.000 W-500 32AW
two rprt seal oaFI apfwraf r .- rrdortacla
Our standard hourty airs vary arxnrdrxt to the degree of neponsibiity wrrolved and the uoneieeoe lewd of the
personnel assigned b your audit.Our irwices for these fees wA be rendered each month as wort progresses
and are payable an presertutien_In accordance with our firm policies,work may be suspended N yore account
becomes 30 days or mom overdue and may not be resumed until you account is paid in Our_If we ehxt b
ten.nale or services for nanpayment.our ergaaenent will be deemed to have beak enrtnpleled upon wrbw
nc fication of terrni atom even if we have not completed our reperf(sy You will be nbfipated b oorr a0e uu for
all tine expended and to reimburse us for all out-of-pocket cods riouah the dale of to ni+alivL The above fee is
based an anticipated cooperation from your personnel and the assu mpiun that unexpecked cacumstertces will not
be encountered during the audt If siprrTk=A addufonal time is necessary,we wig discuss it with you and arwe at
a new fee estimate before we incur the aidiiional exists_
g RESOLUTION#2013-119
7
Eaibhle RAd.Tersiutiah arW Notice
(a)1=a- The City apes that it would be inpossUe or inadequate b mea5ue and calculate the
HCTSFs derntges iun any breads of the covenants. Acmordngty,the Ciy agrees that if d b ead:es any of the
covenants. HCTSF will have available,is addition to any other right or remedy available,the dgM to obtain an
wgun'tion tram a court of competent jLmsdidicn restrmmp such breach or dinamened breach and to specific
peformahee of any such provision of this agreement. The City fiather agrees that no bond or aver security shall
be required in obtaining such equitable refer and 1 hereby consent to the issuance of sucli irgu ctim and to the
onierng-
(b_) Tem whom by the City.
A. Ten iiniib n by the my for Cause.
1. The City may bmw inabe the Contrad IF Harvey,Covington A Thwrhas of South Florida,LLC where
Ham,Covington&Thomas of Swdfi Florida U-Q
a. perssbm*ar repeabedp ru iises or fails to supply enaujh properly skt9ed workers or
proper egniipmad:or fals to adhere to the scheduleestablished as adjusted fichm time to time
pursuit W the be,. of this Agreenwil;or
b. deE+gards taws,orrrnance,or nA@%regciattiorns or orders of a pubk ar dwd*havi g
Jurisdiction,i duck+city,w
C. aHmawise is guilty of su bstan"breach of a prwam cif this Agreement:
2- when airy of the above reasons exist the c&y,uQm ambTKwbm Omit:suPhoi ant cache am sts W
justly such admen,mat/without preju im to any wirer ri j h or nmww crms of the City and after gwig Harvey,
Covington&Their—of South Florida U-r—give lklr(30)&W written notim teff-whM eniployment of
Harvey,Cm4Kjkorn&llhunas of SuA Florida LM
(e.)Written Ndke.
Ar 1Mhahever any party deli m t o give m1- to the other party,t must be giver by vsitern ndkp,
serf by-1 1, Stag nha8,centred redrn necept requested,addressed to dce party for whom it is
itehded. The plate for giving of notice shall remain as set forth b4m until they shall have tea+
dtamied by v n'tten notice in oorrrpbnrx wih the provisions of this paragraph. For the prserrt,the City
demgm-&m the fol wmq as the respective persons and places for the WAV cif rhatiee:
Owner's R,epresatatibm Rabat sal"w%Char
My of Dania Bach,Florida
10D Wrest Ueda Beach Boulevard
Dania Beams Honda 330D4
City; Thomas Ansibm City Attorney
City of Dania Bach,Flaida
L00 Wrest Dam Beach Boulevard
Dania Bei cfk Honda 33(M
City Mark Babes,Fiiere Dicer,
City of Dania Beach
100 West Dania Beach Blvd,
Dania Beck,FL 33004
Audio Harvey,GwA ngto n&Th rnas of South Florida 11CC Afro:Roderick Harvey,CPA,CVA(orhiy)
Addmw 3616 Halywc od Boulevard,Su ile 203
Suihe 203
Holywood.F wida 33021
9 RESOLUTION#2013-1 l9
I
i
Govennnent Aoddrrg sbndards requie that we provide you with a copy of our most revers extemai peer review
report and any Idle of cornrnert,and any subsequent peer review n qzd and letters of canmerd received during
the period of the cantrad Our 79113 peer review report a000rrparies th&letter.
This enaapenneet letter with wall auloirralicaily renew for a period of ttree(3)years unless canceled in m iinp by
erit er party.and addaeruty alders for two separ-ale,amwal seducers subject to the City Cmnrrussion appr m.
We appreciate the opportunity to be of service to The City and believe this letter accurately su narias the
sigrficant terms of our engagement.If you have arty questions,please let us know.If you agrim with the trams of
our engagement as described in this led er please sign the enclosed copy and return t to us-
Very truly your.
Harvey Covington and Thorns or South PAdda U.0
RESPONSE
This letter correctly sets Tarth the mimstarndirg of the City of Dania Beady_
Managernnent signahae
Tdte_
Qate
Governance signature:
Tice
Dom-
10 RESOLUTION#2013-119