Agenda 06/28/2011 Item #16J6
6/28/2011 Item 16.J.6.
EXECUTIVE SUMMARY
To obtain Board approval for year two (2) of Contract #09-5270, "Auditing Services for Collier
County", with Ernst and Young LLP, in order to provide for fiscal year 2011 external audit and
authorize corresponding payment of $592,250 for services.
OBJECTIVE: To provide annual auditing services for the County as required by Florida Statute
218.39.
CONSIDERATIONS: The selection of Ernst and Young LLP for contract #09-5270 was in
compliance with the provisions outlined in Chapter 11.45, Florida Statutes. On June 22, 2010, Item
16(1)6 the Board approved entering into Contract #09-5270 with Ernst and Young LLP, Contract #09-
5270 awarded a three year auditing services contract for Collier County to Ernst and Young LLP, with
two (2) one (1) year extensions. This request begins the 2011 audit process, including interim audit
services. Section 4 of Agreement #09,5270 outlines contract price escalations of the lesser of South
Urban Consumer Price Index based on the previous twelve months, or 3.0%, for the FY -2011 and 2012
audits. The South Urban Consumer Price Index increased by 3.4% over the twelve months ended
April 2011. The proposed amount of$592,250 is 3.0% more than the FY-2010 audit cost of$575,000.
The proposed amount includes costs of up to twenty major grant program audits. Should the number
of major grant programs exceed twenty the contract states that additional programs will be billed at
$7,725 per program. For purposes of comparison, there were 13 major programs in FY-201 O. Funds
will be encumbered in the amount of $592,250 during FY -2011, as interim services will begin prior to
the fiscal 2011 year end, and unspent amounts will roll forward into FY-2012 as the audit progresses.
The majority of the $592,250 will be paid during FY-20l2, The payments made in the subsequent
fiscal year will not exceed contracted amounts, and the Board will be informed by executive summary
if the number of major programs audited exceeds twenty in FY-201].
FISCAL IMPACT: Budget of $592.250 is available in the General Fund, in the "Other General attd
Administrative" fund center, line item '.County-Wide Auditing". No budget amendment is required.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with
this executive summary.
LEGAL CONSIDERATIONS: This item has been reviewed and approvcd by the County Attorney's
Office, is legally sufficient for Board action and only requires a majority vote for approval-SRT,
RECOMMENDATION: That the Board of County Commissioners approves the second year of
Contract #09-5270 with Ernst and Young LLP for FY,2011 audit services in the amount of $592,250.
Prepared By: Derek M, Johnssen, General Accounting Manager, Office of the Clerk of the Circuit
Court
Packet Page -1694-
6/28/2011 Item 16.J.6,
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.J.6.
Item Summary: To obtain Board approval for year two (2) of Contract #09,5270,
"Auditing Services for Collier County", with Ernst and Young LLP, in order to provide for fiscal
year 2011 external audit and authorize corresponding payment of $592,250 for services.
Meeting Date: 6/28/2011
Prepared By
Name: JohnssenDerek
Title: VALUE MISS]NG
6/2012011 1:21:48 PM
Submitted by
Title: VALUE MISSING
Name: JohnssenDerek
6/2012011 1:21 :50 PM
Approved By
Name: KinzelCrystal
Date: 6/21/20112:04:25 PM
Name: IsacksonMark
Title: Director-Corp Financial and Mgmt Svs,CMO
Date: 6/211201] 2:39:07 PM
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6/28/2011 Item 16.J.6,
CHANGE ORDER
CHANGE ORDER NO, 1
CONTRACT NO. 09,5270
BCC Date: 6/2211 0
Agenda Item: _J6J6
TO: Emst & Young LLP
Attn: Mr. Thomas Bradlev
5100 Town Center Circle
Suite 500
Boca Raton. FL 33486
Under our AGREEMENT dated _June 22, 20] 0
In accordance with Section 4 of the Agreement, you hereby are authorized and directed to make the
following change(s) in accordance with terms and conditions of the Agreement: Add Exhibit A, Payment
Milestones and Schedule for Auditing Services for Collier County for Fiscal Year 20] ], herebly attached and
incorporated by reference.
FOR THE (Additive) Sum of: five hundred ninety two thousand two hundred fifty dollars ($592,250).
Original Agreement Amount
$575,000
Sum of Previous Changes
$
-0-
This Change Order add
$592,250
Present Agreement Amount
$ 1,167,250.00
The time for completion shall be as per attached Exhibit A due to this Change Order. Your acceptance of
this Change Order shall constitute a modification to our Agreement and will be perfom1ed subject to all the
same tenns and conditions as contained in our Agreement indicated above, as fully as if the same were repeated
in this acceptance. The adjustment, if any, to the Agreement shall constitute a full and final settlement of any
and all claims of the Auditor arising out of or related to the change set forth herein, including claims for impact
and delay costs.
Accepted:
,2011
CONTRACTOR:
Emst & Young LLP
OWNER:
BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY, FLORIDA
By:
By:
Derek Johnssen, Project Manager
Type Name of Signator
DEPARTMENT D]RECTOR
By:
Crystal Kinzel
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6/28/2011 Item 16.J.6.
PROCUREMENT STRATEGIST
By:
Lyn M. Wood
Date:
ATTEST:
BOARD OF COUNTY COMMISSIONERS OF
COLLlER COUNTY FLORIDA
Dwight E. Brock, Clerk
BY:
BY:
Fred W. Coyle, Chainnan
Approved As To Form
and Legal Sufficiency:
Deputy County Attorney
Print Name:
Scott Teach
09-5270 - Annual Auditing Services
Change Order # 1 - Page 2
2
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6/28/2011 Item 16.J.6,
EXHIBIT A
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11111111111111111111I11111111111'"'''''''''' !€!I ERNST & YOUNG
Attachment: Basis of Compensation and Billing Schedule
1. For the Services provided for in the Agreement #09,5270 and the related Addendum #1
herein, the County agrees to make the lump sum payments to Auditor in accordance with the
terms stated below. Auditor will invoice the County in accordance with the following
Schedule, and payment shall be made in accordance with Chapter 218, Florida Statutes, also
known as the "Local Government Prompt Payment Act." Payment of any particular line item
noted below shall not be due until all services associated with any such line item have been
substantially completed to County's reasonable satisfaction.
2. Payments for Additional Services of Auditor will be in accordance with the terms outlined in
Article 4 of the Agreement #09-5270 and the related change order.
Task] Meet with executives and financial $ 5,150 Upon completion of
July management to co-develop expectations. all items associated
Conduct planning meetings, develop detailed with Task 1.
audit plan. Attend Audit Committee Meeting;
begin interim fieldwork (understanding and I
testing of internal controls and systems).
Begin single audit planning and interim I
testing.
Task 2 Significant completion of control testing, risk $ ] 23,600 I Upon completion of
November assessments and audit planning. aU items associated
I Constitutional Officer General Ledgers with Task 2.
provided to the auditors. Begin performance
of substantive testing of account balances, I
Task 3 Significant completion of fieldwork of $ 123,600 I Upon completion of
November- Constitutional Officers. Review of I all items associated
December Constitutional Financial Statements and with Task 3.
conduct exit interviews on Constitutional
Statements December 1,] 5, 2011. Begin
performance of substantive testing of account
balances - Board of County Commissioners
General Ledger provided December 12, 2011.
Continue single audit testing.
Addendum #1 to Agreement #09.5270
Collier County, Florida
Page] of 6- 1105-1260101
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6/28/2011 Item 16.J.6,
11111111111111111111111111111111111,,'" go ERNST & YOUNG
Task 4
January
, Task 5
February
, Board financial statement audit significantly $ 154,500
complete. Single audit significantly complete.
The Clerk of Courts oversees preparation of
draft financial statements, notes and required
supplemental schedules and statistical data.
First draft of financial statements to auditors
January 20, 2012. Second draft to auditors
one week after review.
Issue opinion on Comprehensive Annual $ 185,400
Financial Report (CAFR), including all
Constitutional Officer reports. Issue all other
required reports, including single audit.
Present CAFR to the Board. Completion and
delivery of all other required reports,
including single audit and data collection
reportS on February 28, 2012.
Total Fee* (Total Items 1,5) $ 592.250
Upon completion of
all items associated
with Task 4.
Upon completion of
all items associated
with Task 5.
. Should the number of the County's grant programs required to be audited as major exceed twenty
(20) programs, our fee for such additional major programs will be seven thousand, seven hundred
twenty-five dollars ($ 7,725,00) per program and the amount of the last billing will be adjusted
accordingly by change order, Additionally, our fee to perform and issue a report on Agreed Upon
Procedures related to the Sheriff's Investigative Funds will be seven thousand, two hundred ten
dollars (S7,21000) if the major grant programs exceed twenty (20); otherwise, the Sheriff's
Investigative Funds will be included under the major programs within the agreement, the amount of
the last bil1ing to be adjusted accordingly by change order.
This schedule of performance is based upon the County's personnel providing a reasonable level of
client assistance as well as the County's records being reasonably maintained. Should the Auditor's
assumptions with respect to the condition of the records, degree of cooperation, or other matters
beyond Auditor's reasonable control require additional commltments by Auditor beyond those upon
which this schedule is based. Auditor reserves the right to adjust planned completion dates with the
County in v.rriling.
Addendum #1 to Agreement rt09.5':;-::0
Cvllier COU!l1)'. F]nrid3
P-~ge 2 of6--11C5-126010i
.~ '~t'rr',CN lore_ 0: :.rrd & M"n~ ':;;C'~'d, ~.rH"t~r
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6/28/2011 Item 16.J.6,
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THIS AGREEMENT, made and entered into on this 2Z,Jb day of UllNf,.
2010, by and betWeen Ernst & Young LLP, whose address is 5100 Town Center Circle, Suite 500,
Boca Raton, Florida, 33486, hereinafter called the "Auditor" and Collier County, a political
subdivision of the State of Florida, Collier County, Naples, hereinafter called the "County":
"Annual Auditinl! Services"
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A G R E E MEN T #09-5270
WI TN ESSETH:
1. COMMENCEMENT. The Auditor shall commence the work upon execution of this
Agreement and upon issuance of a Purchase Order, The initial contract shall be for a three (3)
year period, commencing on July 1,2010 and terminating on June 30, 2013. The County, at its
discretion, and with the consent of the Auditor, shall have the option to request renewal for two
(2) additional one (1) year periods.
.
2. STATEMENT OF WORK. The Auditor shall provide Auditing Services for Collier County in
accordance with the terms and conditions of this Agreement, incorporating all attachments and
exhibits hereto.
This Agreement will include auditing services for other County departments, as well as
additional related services as required and mutually agreed upon by County and Auditor in
writing. Additional services shall be evidenced by an Amendment to this Agreement,
3. SCHEDULE. The Auditor agrees to complete the services as required pursuant to this
Agreement within the time period(s) established by mutual written agreement between Auditor
and the Finance Director, or her designee, for completion of the various tasks of the project (see
Exhibit C - Basis of Compensation and Schedule).
4. THE CONTRACT SUM, The County shall pay the Auditor for the performance of this
Agreement a maximum lump sum amount of five hundred seventy-five thousand dollars
($575,000.00) for the 2010 audit. This amount is based on the Auditor's proposal, subject to
written Change Orders for the addition of seven thousand five hundred dollars ($7,500.00) each
for the audit of major programs in excess of twenty (20), only as approved in advance by the
County. Additionally. Auditor's fee to perform and issue a report on Agreed Upon Procedures
related to the Sheriff's Investigative Funds will be $7,000 if the major grant programs exceed
twenty (20), otherwise the Sheriff's Investigative Funds will be included under the major
programs within the agreement. Payment for the subsequent audits, Years 20 II and 2012, and
future audits, will be based on the lesser of the South Urban Consumer Price Index (CPI) based
on the previous twelve (12) months over prior year, or three percent (3%) as evidenced in
writing between the County and the Auditor, The cost for auditing and additional related
services for other County departments will be the result of mutual negotiation based on
Agreement 09-5270
Annual Auditing SeNice.
Page I of 19
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6/28/2011 Item 16.J.6.
individual departmental requirements, and agreed upon in writing by County and Auditor. The
Auditor shall provide a fee estimate for written approval by the County based on the additional
audit effort required, at the hourly billing rates identified in Exhibit B:
5. COMPENSATION. Payments shall be made to the Auditor in accordance with Exhibit C-
Basis of Compensation and Schedule, attached hereto and made a part hereof by reference.
Payments shall be made not more frequently than once per month,
Payment will be made upon receipt of a proper invoice and in compliance with Section 218,
Florida Statutes, otherwise known as the "Local Government Prompt Payment Act".
Compensation for future year audits will be mutually agreed to by the County and the Auditor in
writing,
6. NOTICES. All notices from the County to the Auditor shall be deemed duly served if mailed or
faxed to the Auditor at the following address:
Mr. Thomas J. Bradley, CPA
Ernst & Young LLP
5]00 Town Center Circle, Suite 500
Boca Raton, FL, 33486
Telephone: 561,995-8013
Fax: 954,561,8200
All Notices from the Auditor to the County shall be deemed duly served if mailed,
Faxed or emailed to the County to:
Stephen Y. Carnell
Purchasing/General Services Director
Collier County Government Center
Purchasing Department - Purchasing Building
330] Tamiami Trail, East
Naples, Florida 34112
Telephone: 239,252-8407
Fax: 239,252-6584
Email: stevecarnel1@colliergov.net
The Auditor and the County may change the above mailing addresses and fax numbers at any
time upon giving the other party written notification. All notices under this Agreement must be
in writing,
7. NO PARTNERSHIP. Nothing herein contained shall create or be construed as creating a
partnership between the County and the Auditor or to constitute the Auditor as an agent of the
County.
Agreement #09.5270
Annual Auditing Services
Page 2 of 19
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6/28/2011 Item 16.J.6,
8, PERMITS: LICENSES: TAXES. In compliance with Section 218.80, Fla. Stats., all permits
necessary for the prosecution of the Work shall be obtained by the Auditor. Payment.for all such
permits issued by the County shall be processed internally by the County. All non-County
permits necessary for the prosecution of the Work shall be procured and paid for by the Auditor.
The Auditor shall also be solely responsible for payment of any and all taxes levied on the
Auditor. In addition, the Auditor shall comply with all rules, regulations and laws of Collier
County, the State of Florida, or the U. S. Government now in force or hereafter adopted, The
Auditor agrees to comply with all laws governing the responsibility of an employer with respect
to persons employed by the Auditor.
9. NO IMPROPER USE. The Auditor will not use, or suffer or permit any person to use in any
manner whatsoever, county facilities for any improper, immoral or offensive purpose, or for any
purpose in violation of any federal, state, county or municipal ordinance, rule, order or
regulation, or of any governmental rule or regulation now in effect or hereafter enacted or
adopted. In the event of such violation by the Auditor or if the County or its authorized
representative shall deem any conduct on the part of the Auditor to be objectionable or improper,
the County shall have the right to suspend the contract of the Auditor. Should the Auditor fail to
correct any such violation, conduct, or practice to the satisfaction of the County within
twenty-four (24) hours after receiving notice of such violation, conduct, or practice, such
suspension to continue until the violation is cured. The Auditor further agrees not to commence
operation during the suspension period until the violation has been corrected to the satisfaction of
the County,
10, TERMINATION. Should the Auditor be found to have failed to perform his services in a
manner reasonably satisfactory to the County as per the requirements of this Agreement, the
County may tenninate said agreement for cause if the Auditor fails to cure such breach within
fifteen (15) business days' notice of such breach; further the County may tenninate this
Agreement for convenience with a thirty (30) day written notice. The County shall pay for all
professional fees for Services and expenses incurred by the Auditor through the effective day of
any termination, but Auditor shall not be entitled to any other or further recovery against County,
including, but not limited to, anticipated fees or profits on Services not required to be performed.
Auditor must mitigate all such costs to the greatest extent reasonably possible,
11. NO DISCRIMINATION. The Auditor agrees that there shall be no discrimination as to race,
sex, color, creed or national origin.
12, INSURANCE. The Auditor shall provide insurance as follows:
A. Commercial General Liabilitv: Coverage sha1I have minimum limits of $1,000,000 Per
Occurrence. Combined Single Limit for Bodily Injury Liability and Property Damage
Liability. This shall include Premises and Operations; lndependent Consultants; Products
and Completed Operations and Contractual Liability .
B. Workers' Compensation: Insurance covering all employees meeting Statutory Limits in
compliance with the applicable state and federal laws.
The coverage must include Employers' Liability with a minimwn limit of $500,000 for
each accident.
Agreement #09,5270
Annual Auditing Services
Page 3 of 19
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6/28/2011 Item 16.J.6,
C. Automobile Liabilitv: Coverage shall have minimum limits of $500,000.
D. Professional Liabilitv: Coverage shall have minimum limits of$I,OOO,OOO.
Special Reauirements: Collier County shall be listed as the Certificate Holder and
included as an Additionallnsnred on the Comprehensive General Liability Policy.
Current, valid insurance policies meeting the requirement herein identified shall be
maintained by Auditor during the duration of this Agreement Renewal certificates shall
be sent to the County ten (10) days prior to any expiration date upon written request by
County, There shall be a thirty (30) day notification to 'the County in the event of
cancellation or modification from the amounts specified above of any stipulated insurance
coverage,
Auditor shall insure that all subconsultants comply with the same insurance requirements
that he is required to meet. The same Auditor shall provide County with certificates of
insurance meeting the required insurance provisions.
13. INDEMNIFICATION. To the maximum extent permitted by Florida law, the Auditor
shall indemnify and hold harmless Collier County, its officers and employees from any and
all third party liabilities, damages, losses and costs, including, but not limited to, reasonable
attorneys' fees, relating to bodily injury or tangible property damage to the extent caused by
the negligence, recklessness, or intentionally wrongful conduct of the Auditor or anyone
employed or utilized by the Auditor in the performance of this Agreement. This
indemnification obligation shall not be construed to negate, abridge or reduce any other
rights or remedies which otherwise may be available to an indemnified party or person
described in this paragraph,
This section does not pertain to any incident to the extent resulting from the negligence of
Collier County.
14. CONTRACT ADMINISTRATION. This Agreement shall be administered on behalf of
the County by the Clerk of Courts Finance Division.
15, COMPONENT PARTS OF THIS CONTRACT. This Contract consists ofthe attached
component parts, all of which are as fully a part of the contract as if herein set out verbatim:
Exhibit A - Dispute Resolution Procedures, Exhibit B - Auditor's Engagement Letter,
Exhibit C - Basis of Compensation and Schedule, and Insurance Certificate.
16. SUBJECT TO APPROPRIATION. It is further understood and agreed by and
between the parties herein that this agreement is subject to appropriation by the Board of
County Commissioners.
17. PROHIBITION OF GIFTS TO COUNTY EMPLOYEES. No organization or
individual shall offer or give, either directly or indirectly, any favor, gift, loan, fee, service or
other item of value to any County employee, as set forth in Chapter I 12, Part Ill, Florida
Statutes, Collier County Ethics Ordinance No. 2004-05, and County Administrative
Procedure 5311. Violation of this provision may result in one or more of the following
consequences: a. Prohibition by the individual, firm, and/or any employee of the firm from
Agreement #09-5270
Annual Auditing Services
Page 4 of 19
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Gi 6/28/2011 Item 16.J.6.
contact with County staff for a specified period of time; b. Prohibition by the individual
and/or finn from doing business with the County for a specified period of time, including but
not limited to: submitting bids, RFP, and/or quotes; and, c. immediate termination of any
contract held by the individual and/or firm for cause.
]8. IMMIGRATION LAW COMPLIANCE: By executing and entering into this agreement,
the Auditor is formally acknowledging without exception or stipulation that it is fully
responsible for complying with the provisions of the Immigration Reform and Control Act
of] 986 as located at 8 U,S.C. ] 324, et seq. and regulations relating thereto, as either may be
amended, Failure by the Auditor to comply with the laws referenced herein shall constitute a
breach of this agreement and the County shall have the discretion to unilaterally terminate
this agreement immediately.
]9. DISPUTE RESOLUTION: Except for a claim limited solely to seeking nOD,monetary or
equitable relief, any dispute or claim arising out of or relating to the Auditing Services, this
Agreement, or any other services provided by or on behalf of the Auditor or any of its
subAuditors or agents to the County or at the County's request (including any matter
involving any third party for whose benefit any such services are provided), shall be
resolved by mediation or arbitration as set forth in Exhibit A - Dispute Resolution
Procedures attached hereto and made a part hereof by reference. Judgment on any arbitration
award may be entered in any court having jurisdiction.
20, OFFER EXTENDED TO OTHER GOVERNMENTAL ENTITIES: Collier County
encourages and agrees to the successful proposer extending the pricing, terms and conditions
of this solicitation or resultant contract to other governmental entities at the discretion of the
successful proposer.
21. AUTHORITY TO EXECUTE. By signing below, the parties confirm that the execution of
this Agreement has been duly authorized by its respective entities and that the parties signing
below are authorized to sign the agreement on behalf of such entity,
22. KEY PERSONNELIPROJECT STAFFING: The proposer's personnel and management
to be utilized for this project shall be knowledgeable in their areas of expertise. The County
reserves the right to perform investigations as may be deemed necessary to insure that
competent persons will be utiliZed in the performance of the contract. Selected firm shall
assign as many people as necessary to complete the project on a timely basis, and each
person assigned shall be available for an amount of time adequate to meet the dates set forth
in the Project Schedule. Firm shall not change Key Personnel unless the following
conditions are met: (I) Proposed replacements have substantially the same or better
qualifications andlor experience. (2) that the County is notified in writing as far in advance
as possible. Finn shall make commercially reasonable efforts to notify Collier County within
seven (7) days of the change. The County retains final approval of proposed replacement
personnel.
Agreement #09-5270
Annual Auditing Services
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6/28/2011 Item 16.J.6.
IN WITNESS WHEREOF, the Auditor and the County, have each, respectively, by an authorized
person or agent, hereunder set their hands and seals on the date and year fITst above written.
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
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ERNST & YOUNG LLP
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Signature
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Second Witness
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1'Type/print witness name i
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Typed signature and title I
Approved as to fonn and
legal sufficitncy + tp Collier County:
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Agreement #09-5270
Annual Auditing Services
Page 6 of 19
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6/28/2011 Item 16.J.6.
Exhibit A
Dispute Resolution Procedures
MediDti'J11
A party shall submit a dispute to mediation by written notice to the other party or parties. The mediator shall be
selected by the parties. If the parties cannot agree on a mediator, the International Institute for Conflict Prevention
and Resolution ("CPR") shall designate a mediator at the request of a party. Any mediator must be acceptable to all
parties and must conlinn in writing that he or she is not, and will not become during the ternl of the mediation, an
employee, partner, executive officer, director or substantial equity owner of any E& Y audit client.
The mediator shall conduct the mediation as helshe detennines, with the agreement of the parties. The parties shall
discuss their differences in good faith and attempt, with the mediator'S assistance, to reach an amicable resolution
of the dispute. The mediation shall be treated as a settlement discussion and shall therefore be conlidential. The
mediator may not testifY for either party in any later proceeding relating to the dispute. The mediation proceedings
shall not be recorded or transcribed.
Each party shall bear its own costs in the mediation. The parties shall share equally the fees and expenses of the
mediator.
If the parties have not resolved a dispute within ninety (90) days after written notice beginning mediation (or a
longer period, if the parties agree to extend the mediation), the mediation shall tenninate and the 'dispute shall be
settled by arbitration. In addition, if a party initiates litigation, arbitration, or other binding dispute resolution
process without initiating mediation, or before the mediation process has tenninated, an opposing party may deem
the mediation requirement to have been waived and may proceed with arbitration,
Arbitration
The arbitration will be conducted in accordance with the procedures in this document and the relevant rules as
provided below as in effect on the date of the Agreement ("Ru]es"), or such other rules and procedures as the
parties may agree. In the event of a conflict, the provisions of this document will control.
Every arbitration of a dispute involving an amount in controversy of live hundred thousand dollars ($500,000)
or less shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration
Association ("AAA"), including the Expedited Procedures set forth below, by one arbitrator, to be selected in
accordance with the Rules, who shall be independent, impartial and neutral with respect to the parties and the
subject matter submitted for arbitration, A sole arbitrator shall have no power to award any amount in excess of
five hundred thousand dollars ($500,000) (exclusive of interest, costs, and any attorneys' fees that may be
applicable). By submitting a claim to arbitration before a sole arbitrator, the parties waive any right to a
recovery in any forum in excess of five hundred thousand dollars ($500,000) (exclusive of interests, costs, and
any attorneys fees that may be applicable). Such arbitration shall be conducted in accordance with the expedited
procedures below.
Every arbitration of a dispute involving an amount in controversy of more than live hundred thousand dollars
($500,000) shall be conducted in accordance with the Rules for Non-Administered Arbitration of CPR, by a
pane] of three arbitrators, to be selected in accordance with the screened selection process provided in the Rules.
Any issue concerning the extent to which any dispute is subject to arbitration, or concerning the applicability,
interpretation, or enforceability of any of these procedures, shall be governed by the Federal Arbitration Act and
resolved by the arbitrator(s). No potential arbitrator may be appointed unless he or she has agreed in writing to
these procedures and has confirmed in writing that he or she is not, and will not become during the tenn of the
arbitration, an employee, partner, executive officer, director or substantial equity owner of any E&Y audit client.
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Annual Auditing Services
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G1. 6/28/2011 Item 16.J.6.
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The arbitrator or arbitration pane] shall have no power to award non,monetary or equitable relief of any sort or
to make an award or impose a remedy that (i) is inconsistent with the agreement to which these procedures are
attached or any other agreement relevant to the dispute, or (ii) could not be made or imposed by a court deciding
the matter in the same jurisdiction,
Discovery shall be permitted in connection with the arbitration only to the extent, ifany, 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. The panies and the arbitration panel may disclose
the existence, content or results of the arbitration only in accordance with the Rules or applicable professional
standards. Before making any such disclosure, a party shall give written notice to all other parties and shall
afford them a reasonable opportunity to protect their interests, except to the extent such disclosure is necessary
to comply with applicable law, regulatory requirements or professional standards.
The result of the arbitration shall be binding on the parties, and judgment on the arbitration award may be
entered in any court havingjurisdiction.
EXPEDITED PROCEDURES
The following additional procedures shall apply in the case of an arbitration held before a single arbitrator.
E-l. Limitation on Extensions
Except in extraordinary circumstances, the AAA or the arbitrator may grunt a party no more than one seven-day
extension oftime to respond to the demand for arbitration or counterclaim as provided in Section R,4,
E-2, Changes of Claim or Counterclaim
A claim or counterclaim may be increased in amount, or a new or different claim or counterclaim added, upon
the agreement of the other party, or the consent of the arbitrator. After the arbitrator is appointed, however, no
new or different claim or counterclaim may be submitted except with the arbitrator's consent. If an increased
claim or counterclaim exceeds seventy-five thousand dollars ($75,000), the case will be administered under the
regular procedures unless all parties and the arbitrator agree that the case may continue to be processed under
the Expedited Procedures.
E-3. Serving of Notices
In addition to notice provided by Section R-39(b), the parties shall also accept notice by telephone. Telephonic
notices by the AAA shall subsequently be confirmed in writing to the parties, Should there be a failure to
confirm in writing any such oral notice, the proceeding shall nevertheless be valid if notice has, in fact, been
given by telephone.
E-4. Appointment and Qualirlcations of Arbitrator
(a) The AAA shall simultaneously submit to each party an identical list of five proposed arbitrators drawn from
its National Roster from which one arbitrator shall be appointed,
(b) The panies are encouraged to agree to an arbitrator from this list and to advise the AAA of their agreement.
If the parties are unable to agree upon an arbitrator, each party may strike two names from the list and return it
to the AAA within seven days from the date of the AAA's mailing to the parties. If for any reason the
appointment of an arbitrator cannot be made from the list, the AAA may make the appoinnnent from other
members of the panel without the submission of additional lists.
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(c) The parties will be given notice by the AAA of the appointment of the arbitrator, who shall be subject to
disqualification for the reasoos specified in Section R-17. The parties shall notify the AAA within seven (7)
days of any objection to the arbitrator appointed. Any such objection shall be for cause and shall be confirmed in
writing to the AAA with a copy to the other party or parties.
E,5. Exchange of Exhibits
At least two business days prior to the hearing, the parties shall exchange copies of all exhibits they intend to
submit at the hearing, The arhitrator shall resolve disputes concerning the exchange of exhibits.
E-6. Proceedings on Doeuments
Where no party's claim exceeds tell thousand dollars ($10,000), exclusive of interest and arbitration costs, and
other cases in which the parties agree, the dispute shall be resolved by submission of documents, unless any
party requests an oral hearing, or the arbitrator determines that an oral hearing is necessary. The arbitrator shall
establish a fair and equitable procedure for the submission of documents.
E-7. Date, Time, and Place of Bearing
In cases in which a hearing is to be held, the arbitrator shall set the date, time, and place of the hearing, to be
scheduled to take place within thirty (30) days of confinnation of the arhitrator's appointment. The AAA will
notify the parties in advance of the hearing date.
E-8. The Hearing
(a) Generally, the hearing shall not exceed one day. Each party shall have equal opportunity to submit its proofs
and complete its case. The arbitrator shaH determine the order of the hearing, and may require further
submission of documents within two days after the hearing. For good cause shown, the arbitrator may schedule
additional hearings within seven business days after the initial day of hearings.
(b) Generally, there will he no stenographic record. Any party desiring a stenographic record may arrange for
one pursuant to the provisions of Section R,26,
E-9. Time of Award
Unless otherwise agreed by the parties, the award shall be rendered not later than fourteen (14) days from the
date of the closing of the hearing or, if oral hearings have been waived, from the date of the AM's transmittal
of the final statements and proofs to the arbitrator.
E-IO. Arbitrator's Compensation
Arbitrators will receive compensation at a rate to be suggested by the AAA regional office.
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Exhibit 8
June 9, 20]0
Collier County Board of County Commissions
3301 Tarniarni Trail East
Naples, FL 34112
Attention: Mr. Fred W. Coyle, Chairman of the Collier County Board of County Commissioners
Commissioners:
This will confirm the engagement of Ernst & Young LLP ("we" or "E&Y") to audit and report on the
basic financial statements of the governmental activities, the business,type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information,
which collectively comprise the basic financial statements of Collier County, Florida (the "County")
for the year ending September 30, 20] O. We will also audit and report on the separate financial
statements of the Constitutional Officers of the County and the County Water and Sewer District. The
objective of our audit of the financial statements is to express opinions on the fairness, in all material
respects, of the presentation of the basic financial statements for each applicable opinion unit in
conformity with accounting principles generally accepted in the United States. We also will conduct
an audit in accordance with the Single Audit Act Amendments of 1996, and the provisions of OMB
Circular A,133 Audits ofSlales, Local Governments and Non-Profil Organizations (OMB Circular A-
133) ("A-]33 Audit"), and Section 2]5.97 Florida Statutes, (Florida Single Audit) (collectively the
"Federal and State Single Audit"), and will include tests of accounting records, a detennination of
major program(s) in accordance with OMB Circular A-l33 and the Florida Single Audit, and other
procedures we consider necessary to enable us to express an opinion on compliance for each major
program and to render the required reports. The services described in this paragraph may hereafter be
referred to as either "Audit Service" or "Audit Services." This engagement letter, together with the
Collier County Contract #09,5270 "Annual Auditing Services" to which this engagement letter is
attached, and Exhibits A through C, shall hereafter be referred to as the "Agreement".
We also will provide a report on internal control over financial reporting related to the financial
statements and compliance with laws, regulations, and the provisions of contracts or grant agreements
and other matters, noncompliance with which could have a material effect on the financial statements,
as required by Government Auditing Standards. We will not perf one sufficient procedures to render an
opinion on internal control over financial reporting nor on compliance with laws, regulations, and the
provisions of contracts or grant agreements and other matters, and therefore, we will not express such
an opinion. This report is intended solely for the information and use of the audit committee,
management, and specific legislative or regulatory bodies and is not intended to be and should not be
used by anyone other than these specified parties.
We will report on the fairness of the schedule of expenditures of federal awards and state fmancial
assistance when considered in relation to the financial statements taken as a whole. We also will report
on:
I. Internal control related to major programs and provide an opinion on compliance with laws,
regulations, and the provisions of contracts or grant agreements that could have a direct and
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material effect on each major program in accordance with the Single Audit Act
Amendments of 1996 and OMB Circular A-133 and Section 215.97 Florida Statutes.
ii. The A,J33 and Florida Single Audit Act report on internal control and compliance is
intended only for the information and use of the audit committee, management, specific
legislative or regulatory bodies, tederal and state awarding agencies, and, if applicable,
pass, through entities and are not intended to be and should not be used by anyone other
than these specified parties.
Hi. Report on compliance with Florida Statutes Section 29.008 and 29.0085 related to the
certified statement of County Funded Court Related Functions.
Should conditions not now anticipated preclude us from completing our audits and issuing our reports
as contemplated by the preceding paragraphs, we will advise you and the Audit Committee or other
equivalent group promptly and take such action as we deem reasonably appropriate, in good faith and
will discuss such matter with you and the Audit Committee or other equivalent group promptly.
Audit Responsibilities and Limitations
We will conduct our audit of the basic financial statements in accordance with auditing standards
generally accepted in the United States, as promulgated by the American Institute of Certified Public
Accountants ("AICP A"), and the standards for financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States. Those standards require that we
obtain reasonable rather than absolute assurance that the basic financial statements for each opinion
unit are free of material misstatement whether caused by error or fraud. As the County is aware, there
are inherent limitations in the audit process, including, for example, selective testing and the possibility
that collusion or forgery may preclude the detection of material error, fraud, and illegal acts.
Accordingly, a material misstatement may remain undetected. Also, an audit is not designed to detect
error or fraud that is immaterial to the basic financial statements, We will conduct our A-133 and
Florida Single Audit Act audit in accordance with auditing standards promulgated by the A1CP A, the
standards for financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States, the Single Audit Act Amendments of 1996, OMB Circular A,133,
"Audits of States, Local Governments, and Non-Profit Organizations," and Section 215.97 Florida
Statutes,
As part of our audits, we will consider, solely for the purpose of planning our audit and determining
the nature, timing, and extent of our audit procedures, the County's internal control over financial
reporting. This consideration Will not be sufficient to enable us to provide assurance on internal control
over financial reporting or to identify all significant deficiencies and material weaknesses.
We will communicate in writing to management and to the Audit Committee or other equivalent group
all significant deficiencies and material weaknesses identified during the audit of the County's
financial statements, as well as any significant deficiencies and material weaknesses communicated to
management and to the Audit Committee or other equivalent group in previous audits that have not yet
been remediated,
If we determine that there is evidence that fraud or possible illegal acts may have occurred, we will
bring such matters to the attention of an appropriate level of management. If we become aware of fraud
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involving senior management or fraud (whether by senior management or other employees) that causes
a material misstatement of the basic fmancial statements, we will report this matter directly to the
Audit Committee or other equivalent group. We will determine that the Audit Committee or other
equivalent group and appropriate members of management are adequately informed of illegal acts that
come to our attention unless they are clearly inconsequential. In addition, we will inform the Audit
Committee or other equivalent group and appropriate members of management of significant audit
adjustments, material violations of contracts or grant agreements and material abuse noted during our
audit procedures.
We also may communicate other opportunities we observe for economies in or improved controls over
the County's operations.
As part of our engagement, we will apply certain limited procedures to the County's required
supplementary information (RSI). RSl consists of Management's Discussion and Analysis, budgetary
comparison schedules, pension and Other Post-Employment Benefits (OPEB) information and
infrastructure information under modified approach reporting, as applicable. Those limited procedures
will consist principally of inquiries of management regarding the methods of measurement and
presentation of RSI, which management will affirm to us in its representation letter. However, we will
not audit the information and will not express an opinion on it.
Supplementary information other than RSI, such as combining and individual fund and nonmajor fund
financial statements, introductory and statistical sections, also may accompany tbe County's basic
financial statements. We will subject all supplementary information that is financially oriented such as
combining and individual fund and nonmajor fund financial statements to the audit procedures applied
in our audit of the basic financial statements and render our opinion on whether that information is
fairly stated, in all material respects, in relation to the basic financial statements taken as whole. We
will not subject supplementary information that comprises nonaecounting information or accounting
information not directly related to the basic financial statements such as the introductory and/or
statistical sections to the auditing procedures applied in our audit of the basic fmanciaJ statements, and
therefore will not express an opinion on this supplementary information, '
To the extent required by law, we will make our audit documentation available to a federal or state
agency or the Comptroller General of the United States Government Accountability Office and provide
copies upon their request. Audit documentation also will be made available upon request to appropriate
auditors and reviewers, We shall promptly notify the County of any such request to review our audit
documentation.
An audit performed in accordance with Government Auditing Standards is not designed to detect
violations of laws or regulations or provisions of contracts or grant agreements that do not have a
direct and material effect on the financial statements or other financial data significant to the audit
objectives.
Because the determination of abuse is subjective, an audit conducted in accordance with Government
Auditing Standards does not provide reasonable assurance of detecting abuse.
In some circumstances in accordance with Government Auditing Standards, we may be required to
report fraud, illegal acts, violations of provisions of contracts or grant agreements and abuse directly to
parties external to the County,
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In accordance with Government Auditing Standards, we will report in a management letter immaterial
violations of provisions of contracts or grant agreements, immaterial abuse, and deficiencies in internal
control other than significant deficiencies (and those that individually, or in the aggregate, are material
weaknesses) unless clearly inconsequential considering both qualitative and quantitative factors.
Under Government Auditing Standards, we are required to provide to the County our most recent peer
review report and any letter of comment, as well as subsequent peer review reports and letters of
comment received during the term of this Agreement. Our most recent peer review report, letter of
comment, and our responses to the letter of comment have been previously provided to the County. We
will provide future peer review reports to the County when available.
Management's Responsibilities and Representations
The basic financial statements are the responsibility of the County's management, which is also
responsible for establishing and maintaining effective internal control, for properly recording
transactions in the accounting records, for safeguarding assets, and for the overall fair presentation of
the basic financial statements. Management of the County also is responsible for the identification of,
and for the County's compliance with, laws and regulations and provisions of contracts and grant
agreements applicable to its activities.
Management is responsible for adjusting the basic financial statements to correct material
misstatements and for affmning to us in its representation letter that the effects of any unrecorded audit
differences accumulated by US during the current audit and pertaining to the latest period presented are
immaterial, both individually and in the aggregate, to the basic financial statements taken as a whole.
Management is responsible for apprising us of all allegations involving financial improprieties
received by management or the Audit Committee or other equivalent group (regardless of the source or
form and including, without limitation, allegations by "whistle-blowers"), and providing us full access
to these allegations and any internal investigations of them, on a timely basis. Allegations of financial
improprieties include allegations of manipulation of fmancial results by management or employees,
misappropriation of assets by management or employees, intentional circumvention of internal
controls, inappropriate influence on related party transactions by related parties, intentionally
misleading E& Y, or other allegations of illegal acts or fraud that could result in a misstatement of the
fmancial statements or otherwise affect the financial reporting of the County, If the County limits the
i.nformation otherwise available to us under this paragraph (based on the County's claims of
attorney/client privilege, work product doctrine, or otherwise), the County will immediately inform us
of the fact that certain information is being withheld from us. Any such withholding of information
could be considered a restriction on the scope of the audit and may prevent us from opining on the
County's financial statements; alter the form of report we may issue on such financial statements; or
otherwise affect our ability to continue as the County's independent auditors, The County and we will
disclose any such withholding of information to the Audit Committee or equivalent group.
As required by auditing standards as promulgated by the AICPA, we will make specific inquiries of
management about the representations contained in the basic financial statements. Those standards also
require that, at the conclusion of the audit, we obtain representation letters from certain members of
management about these matters. The responses to those inquiries, the written representations, and the
results of our audit tests comprise the evidential matter we will rely upon in fonning an opinion on the
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applicable opinion units for the basic financial statements. Management is responsible for providing us
with all financial records and related information on a timely basis, and its failure to do so may cause
us to delay our report, modify our procedures, or even terminate our engagement.
Management is responsible for the following, as provided in Government Auditing Standards:
. Distributing the report on internal control over financial reporting and on compliance and
other matters, as well as making copies thereof available for public inspection unless the
report is restricted by law or regulation, or contains privileged and confidential
information.
. Acknowledging the auditor's role (if any) in preparing draft financial statements and
related notes, or in converting cash-basis financial statements to accrual-based financial
statements.
. Reviewing, approving and taking responsibility for the financial statements and related
notes.
. Identifying for you previous financial audits, attestation engagements, performance audits
or other studies related to the objectives of the audit being undertaken and the corrective
actions taken to address significant findings and recommendations.
. Applying a process to track the status of audit findings and recommendations.
. Providing views on any of your current findings, conclusions, and recommendations, as
well as management's planned corrective actions, for the report, and the timing and
format for providing that information.
. Taking timely and appropriate steps to remedy fraud, illegal acts, violations of provisions
of contracts or grant agreements, or abuse that you' report,
Management is responsible for the following as provided in OMB Circular A-I33 and Section 215,97,
Florida Statutes:
. Complying with the requirements of Office of Management and Budget (OMB) Circular
A-l33, Audits of States, Local Governments, and Non,Profit Organizations and Section
215.97 Florida Statutes;
. Preparing the appropriate financial statements, including the schedule of expenditures of
federal awards and state financial assistance, in accordance with OMB Circular A-l33
and Section 215.97 Florida Statutes;
. Establishing and maintaining effective internal control over compliance for federal and
state programs that provides reasonable assurance that federal and state awards are being
managed in compliance witb laws, regulations, and the provisions of contracts or grant
agreements that could have a material effect on each of its federal and state programs;
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. Complying with laws, regulations; and the provisions of contracts and grant agreements
related to each of its federal and state programs;
. Following up and taking corrective action on audit fmdings, including preparing a
summary schedule of prior audit findings and corrective action plans as required by OMB
Circular A-l33 and Section 215.97 Florida Statutes;
. Submitting the reponing package to required recipients and the data collection form to the
designated federal audit clearinghouse; and
. Communicating to E& Y any significant vendor relationships where the vendor is
responsible for program compliance.
Fees and Billings
The fee for our audit services for the fiscal year ending September 30, 2010 is as follows:
Total base fee
$575,000*
We will submit our invoices according to the schedule included as Exhibit C, Basis of Compensation
and Schedule. Payment shall be made in accordance with Chapter 218, Florida Statutes, also known as
the "Local Government Prompt Payment Act," Billings shall include detail of employees and hours
worked during each billing period.
*Should the number of the County's grant programs required to be audited as major exceed twenty
(20) programs,.our fee for such additional major programs will be seven thousand five hundred dollars
($7,500.00) per program and the amount of the last billing will be adjusted accordingly by change
order. Additionally, our fee to perform and issue a report on Agreed Upon Procedures related to the
Sheriffs Investigative Funds will be seven !housand dollars ($7,000.00) if the major grant programs
exceed twenty (20), o!herwise the Sheriffs Investigative Funds will be included under the major
programs within the agreement, the amount of the last billing to be adjusted accordingly by change
order.
For any scope changes resulting from other additional services that may be requested by the County,
we will notify the County of !he estimated hours in advance and provide a fee estimate for approval by
the County based on the additional audit effort required at the following billing rates:
Level
Partner
Senior Manager
Manager
Senior
Staff
$ 395
$ 280
$ 225
$ 165
$ 125
Our estimated fees and schedule of performance are based upon, among other things, our preliminary
review of !he County's records, and the representations County personnel have made to us and are
dependent upon the County's personnel providing a reasonable level of assistance, Should our
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assumptions with respect to these matters be incorrect or should the condition of the records, degree of
cooperation, or other matters beyond our reasonable control require additional commitments by us
beyond those upon which our estimated fees are based, we may adjust our fees and planned completion
dates upon issuance of a written Change Order signed by E&Y and the County. In addition, fees for
any special audit-related projects, such as proposed business combinations or research and/or
consultation on special business or financial issues, will be billed separately from the audit fee referred
to above and will be the subject of an amendment signed by E&Y and the County.
In the event we are requested or authorized by the County or are required by government regulation,
subpoena, or other legal process to produce our docwnents or our personnel as witnesses with respect
to our engagements for the County, the County will, so long as we are not a party to the proceeding in
which the information is sought, reimburse us for our professional time and expenses, as well as the
reasonable fees and expense of our legal counsel, incurred in responding to such requests upon written
Change Order signed by E&Y and the County.
Hourly rates and fees for subsequent years will be the lesser of the South Urban Consumer Price Index
(CPI) based on the previous twelve (12) months or three percent (3%).
Otber Matters
From time to time, and depending upon the circwnstances, personnel from any affiliate of E& Y, any
other member of the global Ernst & Young network or any of their respective affiliates other than
E&Y, and from independent third party service providers (including independent consultants), may
participate in providing the Audit Services.
The County shall not, during the term of this Agreement and for twelve (12) months following its
termination for any reason, without the prior written consent of E& Y, solicit for employment, or hire,
any current or former partner, principal, or professional employee of E& Y, any affiliate thereof, or any
other member of the global Ernst & Young network or any of their respective affiliates a) if such
partner, principal, or professional employee has been involved in the performance of any audit, review,
or attest service for or relating to the County at any time during the then current fiscal year of the
County up to and including the date of the audit report for that year, or in the twelve (12) months
preceding the audit report date for the immediately preceding fiscal year and b) unless such partner,
principal, or professional employee does not influence E&Y's operations or financial policies and has
no capital balances or any other financial arrangement with E& Y.
Except for a claim limited solely to seeking non,monetary or equitable relief, any dispute or claim
arising out of or relating to the Audit Services, this Agreement or any other services provided by or on
behalf of E& Y or any of its subconsultants or agents to the County or at the County's request
(including any matter involving any third party for whose benefit any such services are provided), shall
be resolved by mediation or arbitration as set forth in the attachment to this Agreement. Judgment on
any arbitration award may be entered in any court having jurisdiction.
If any portion of this Agreement is held to be void, invalid, or otherwise unenforceable, in whole or
part, the remaining portions of this Agreement shall remain in effect.
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,-~
111111111111111111111111111111,,"""'" 5!J ERNST & YOUNG
E&Y appreciates Ibe opportunity to be of assistance to the County. Please si.f1 below on behalf oflbe
County and return it to Thomas J. Bradley, Ernst & Young LLP, 100 N,E, 3 Avenue, Suite 700, Fort
Lauderdale, FL 33301.
Very truly yours,
~THLLP
Agreed and accepted by:
Collier County ~
-W.
By: '
FrM W. Coyle
Title: Chairman of the Collier County Board of County Commissioners
~
1-q -10
Date
""
Agreement #09-5270
Annual Auditing Services
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6/28/2011 Item 16.J.6.
Exhibit C
Basis of Compensation and Schedule
I, For the Services provided for in this Agreement, County agrees to make the lump sum
payments to Auditor in accordance with the terms stated below. Auditor will invoice the
County in accordance with the following Schedule; and payment shall be made in accordance
with Chapter 218, Florida Statutes, also known as the "Local Government Prompt Payment
Act." Payment of any particular line item noted below shall not be due until all services
associated with any such line item have been substantially completed to County's reasonable
satisfaction.
2, Payments for Additional Services of Auditor will be in accordance with Article 4 of the
Agreement.
Task 1 Meet with executives and financial management to $5,000 Upon Completion of all items
July co,develop expectations. Conduct planning associated with Task I.
meetings, develop detailed audit plan. Attend Audit
Committee Meeting, begin interim fieldwork
(understanding and testing of internal controls and
systems), Begin single audit planning and interim
testinl!.
Task 2 Significant completion of control testing, risk $120,000 Upon Completion of all items
'iiovember assessments and audit planning. Constitutional associated with Task 2.
Officer General Ledgers provided to the auditors.
Begin performance of substantive testing of
account balances.
Task 3 Significant completion of fieldwork of $120,000 Upon Completion of all items
'lovember, Constitutional Officers. Review of Constitutional associated with Task 3.
December Financial Statements and conduct exit interviews
on Constitutional Statements December 1,15, 20 I O.
Begin performance of substantive testing of
account balances - Board of County
Commissioners General Ledger provided
December 15,2010. Continue Sinl!le Audit testing.
Task 4 $150,000 Upon Completion of all items
ranuary Board financial statement audit significantly associated with Task 4.
complete. Single Audit significantly complete The
Clerk of Courts oversees preparation of draft
fmancial statements, notes and required
supplemental schedules and statistical data, First
draft of financial statements to auditors January 21,
201 I. First round of comments on initial level
review provided to Finance January 28,2011.
Second draft to auditors one week after review.
TaskS Issue opinion on Comprehensive Annual Financial $180,000 Upon completion of all items
February Report -(CAFR), incJudinl! all Constitutional Officer associated with Task 5.
Agreemenl #09-5270
Annual Auditing Services
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reports. Issue all other required reports, including
Present Single Audit. Present CAFR to the Board
February 22, 2011. Completion and delivery of all
other required reports, including Single Audit.
Data Collection re rts Feb 28,2011. ·
TOTAL FEE. Total Items 1. $575,000
.Should the number of the County's grant programs required to be audited as major exceed twenty
(20) programs, our fee for such additional major programs will be seven thousand five hoodred dollars
($7,500.00) per program and the amount of the last billing will be adjusted accordingly by written
Change Order signed by the parties. Additionally, our fee to perform and issue a report on Agreed
Upon Procedures related to the Sheriffs Investigative Foods will be seven thousand dollars
($7,000.00) and the amount of the last billing will be adjusted accordingly by written Change Order
signed by the parties should the number of major programs exceed twenty (20).
This schedule of performance is based upon the COooty'S personnel providing a reasonable level of
client assistance as well the County's records being reasonably maintained. Should the Auditor's
assumptions with respect to the condition of the records, degree of cooperation, or other matters
beyond Auditor's reasonable control require additional commitments by Auditor beyond those upon
which this schedule is based, Auditor reserves the right to adjust planned completion dates with the
County in writing.
Agreemem #09,5270
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J'RODIICKR
AOn Risk services central.
philadelphia PA Office
One Liberty place
1650 Market Street
suite 1000
philadelphia PA 19103 USA
PHO,..". 215 255-2000
INSllllI!D
Ernst & Young LLP
Attn.: Mark Altberg
200 plaza Drive
Secaucus NJ 07094-3699 USA
Inc.
DATE(...jDD/YVYV)
06/23/2010
S CJtIlTIFICATE IS ISSUED AS A MAITER OF INFORMATION ONLY
AND CONFERS NO RIGHTS UPON THE CERTlnCATE HOLDER. TDIS
CERTlnCATE DOES NOT AMEND, EXTEND OR AI.. TER THE
COVERAGE AFFORDED BY mE POUClES BELOW.
CERTIFICATE OF LIABILITY INSURANCE
INSUIJ!RC:
Insurance compan of ~he State of PA
New Hampshire Ins Co
Illinois National Insurance CO
Chartis casualty company
Federal Insurance company
NAICi
19429
23841
23817
40258
20281
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FAX. 215
255-1893
INSURERS AFFORDING COVERAGE
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INSUI.EJl !~
COVERAGES
nm POUClES OF INSURANCE USTED om..oW HAVE BEEN ISSUED TO niE DfSURED NMQiD ABOVE FOR THE POUCY PERJOD INDICATED. N01WlTHSTAt."DrNQ
A.'lY 1U!QUlKEMeNT, TERM ORCONDmoNOF AN'f CONTRACT OR. 0THJ!Jl DOCUMENTwrrH RBSPECTTO WHlCH nus CERnnCATE MAY BE ISSU!D OR. NAY
PERTAlN', mE INSU1lANCE AFPORDED BY 1'HE POUCIES DESCRIBED HEREIN IS SUBJECI'TO ALL THE 'TERMS., 6XCWSlONS AND CQNDmONS OF SUCH POUCIES.
AGGREGATE UMITS SHOWN MAY HAVE BEEN REDUCED BY PAlDa.AIMS. LIMITS SHOWN ARE AS REQUESTED
INS. -
L'lR TYl'EOF 1N51IRAJ1l'CI. POUCV I'WMIER I..~UCY EFfECT1\'E POLJ.CY EXl'IRATJOt: U"'"
..
E ~~ 35243636 01/01/Z010 01/01/2011 EACH OCl;1..'UENCB $1.000,000
X C'Otrtol}tEaaAL05HlillALUABIUl'V General Liability DAMAOEiENTED Sl,Ooo.ooO
CLAlMS MADE [!] OCCUR. .........-.
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X Prod-CDIlp op Il'lCl In GeIIl AIJII PEII.~.u..ADVtN1VIlY Sl.OOO,OOO ~
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(Jf;HSML AOOR.ECiA1'E .2.000.000 '"
...
OEN'l.. AOOlEGATE UMrT APPLIES I"Eft. '"
PRODUCTS. COMf'IOJ' AGO ~
D POUCY D;:g;lKIwc ElIIPl o~ee 8enefi t u. $1.000,000 R
~
. AUTOMOBILE UABIUTl' 73184332 01/0l/Z010 01/01/2011 ..
COMBJ'NED SINGl.E UMIT 0
r1r """ AtnO AUt:OllOb11e - Business ...-, $1,000,000 Z
~ :l
Al..LOWNED MlTOK BOOn.V INJURY ,g
SCllEDlnLD AUTOS ( Pn' pmon) i!
~ MIRm AUTOS BODILY INJURY .:l
NONOWl<."ED AUTOS (hIolCCilleal)
~ I'ROJ'I!A.'1Y DAMAOE
I- ('",.cc~1
GARAGE LlADlLrrY Aura ONI. Y . Ell ACCIDENT
RANYAtnO OnDiR'fHAl'; EAAt:C
AUTO ONLY:
AOO
G EXCEBS / VMlllE1..1.A U....U.ITY .wc17S3S47-09 01/01/Z010 EACH OCCURR!NC8 >!,u",,-;!lOll
I!I OCCUR o CL.AL\45 MADE ullbrell. $1,000,000
AGCI\EGA'l1!
BOEDUCTIDLE
llETENJtO,..
. workers ODmpensatio"-~ X Iwe STATV.I I~'
WOIlKDtS COMPDi"iA nON AJ\'1)
IMPl,OYERS' UABlUl'Y [J E.LEACHA(.'CI01iHT $1,000,000
0 WC4Za8827 08/01/ZOO9 08/01/2010
/\NY PROPRmTUill PAR'I'WEll/EXECl.JTtvt wDrkers comp<<nsation-AO $1,000,000
OmCD./MEMBER EXCWDED1 E..t.. OlSE.AS1!.EA EMPLOYEE
. (Mmdu.,.lah"ll) wc4288825 08/01j2009 01l/01/2010 E-t.. I)ISHASS-POUCY LOOT $1,000,000
If__ de.crlbc: undEr SPECIAL PR.OVISlONS belDow WDrkers compen5a~ion-FL
om.. ,
DESCRIPTIUN Of' oPERATIONS!LOCAT1ON~IONSADDED BY ENOOlISl!Ml!HTISPEClAL I"tl.OVISIQHS ~
Re: collier County is included as an Additional Insured, as its interest may appear. ~
CERTIFICATE HOLDER
collier county
purchasing oepartment
3301 Tamiami Trail East
Naples, FL 34112 USA
CANCELLATION
~
.....lmIORlUDRIiPIU!S&lTA.Tl'm
~~~~'I"'~
SHOULD ANY OFTHI! ADOVE ORSOI.IBJ!D POUCll!S ae CANCI!.LLFm lIEFORE 'nfB ~IRATION
DAtt THEltEOf', nEE ISSUING IN$'UIU!JI 9,'U.L ENDEAVOIl TO MAJI..
J(l DAYS WRI1'TE'INOTICE TO THE CEilTlflCAT'E HOLOal HAMED T011fE LEFT.
BUT FAILURE TO DO so SKhLl. IMI'OS6 NO OSUCiA.T1OH CUt UADIUTV
0' ANY KI)oID UPOl'IllfE INSURER., rrs AGENTS OR REPRESENT AmES.
ACORD ZS (2t(l9l01)
4)1988-2009 ACORD CORPORATION. All rieblS reserved_
The ACORD name and logo art ngtnered markl .r ACORD
Packet Page -1719-
6/28/2011 Item 16.J.6.
Attachment to ACORD Certificate for Emit' You.. LL'
The terms, conditions and provisions noted below are hereby attached to the capucmcd certificate as additional dcscriptiOD of the coverage
afforded by the insurcr(s). This altac:hmcul does not contain all terms. conditions, cove:rases or exclusioD5 contained in the policy.
ADDmONAL POLICIES
[f 8 policy below does not include limit infmmalion, refer to the corresponding policy on the ACORD
cer1ificatc ronn for policy limits.
INS1JRI!R F Paci fi C Indemni ty CO 20346
INSUREIl G American Guarantee & liability Ins C. 26247
INSURER
INS1JRI!R
INSUREIl
.......
Ernst , Young lLP
Art". : Marie. A l'tberg
ZOO p1aza Dri.....
SecaucU$ NO 07094-3699 USA
...... roucvNUMB11. POLICY POUCY
""It -. n'PE OF IN'SURANCI: POUCY DESt:IW'TION ....CI1Yt EXl'DtAnON LlMI11I
LTll .An: DAn:
WORKERS COMPENSATION
WC4218826 PS/0l/2001 OS/0l/2010
C workers COmpensation-WI
liIC4288.23 ~S/0l/2001 OS/01/2010
A workers COmpensation-DR
WC42Bi8822 S/0l/200! OS/01/201O
A workers compensat1onMCA
.cHalaZa S/0l/2009 OS/0l/2010
8 workers compcnsationetx
lr4C428aal~ S/0l/200 OS/0l/1010
A workers compensation-MA
DfXRlPTION Of OP'EM.l1ONS'LOCAl1ONSIVfiHICLESlEXCLUSIONS ADDED BY ENOClRSE),(!NTISPEOAl. PRDVWOlCS
Certificate No :
570039297559
Packet Page ,1720-
\~C,;
6/28/2011 Item 16.J.6,
ArJIrI GLOBAl
Verification of Insurance
We, \he undersigned Insurance Brokers, hereby verify that North American Capacity Insurance
Company has issued the foRewing described insurance. which is in force as of the date hereot.
Issued to: Collier County
Purchasing Department
3301 Tamiami Trail East
Neples, Floride
34112
U.S.A.
Type of Insurance: PROFESSIONAL INDEMNITY INSURANCE
-_._._-----~--------
Name of Assullld: Ernst & Young U.S, LLP
Policy No. ZZLOO00059-06
Underwriters: North American Capacity Insurance Compeny
Period: 12:01 a,m, February 15th, 201010 12:01 a.m. February 15th. 2011
Limit: US$1 ,000,000 each claim and In the aggragate
Subject to the renns. conditions, exclusions and limitations of the Policy.
This document is furnished as a matter of infonnation only. The issuance of this document
does not make the person or orgenization to whom tt is issued an addUional Assured, nor does
it modify in any manner the contract of insurance between the Assured and the Underwliters.
Any amendment. change or extension of such contract can only be effected by specific
endorsement attached thereto.
Aon Mlnet Inc.
Date: June 25.2010
Montreal, Quebec
Per:
~X';-?-~
Senior Vice President
2010VOI000039.doc
pl'Ofelr;;JOnG Practice I Mtnet lnc.
700 de la Gauchetiere StreetWellt I Suite 1800 I Mcntrial,Ou'bec,CanBdll H3BDA5
t S14--ZllB-2273I t 514-982-5176
w; aan.CQm
Packet Page -1721-