Agenda 06/09/2009 Item #16J 4
Agenda Item No. 16J4
June 9, 2009
Page 1 of 7
EXECUTIVE SUMMARY
To obtain Board approval of year three of Contract #07-4152, "Auditing Services for Collier
County", with Ernst and Young LLP, in the amount of $639,400 and authorize execution of an
official engagement letter and budget amendment for audit services.
OBJECTIVE: To request Board of County Comrnissioner approval of the third year of a three year
auditing services agreement with Ernst and Young LLP and approve the corresponding budget
amendment in the amount of $560,850.
CONSIDERATIONS: The selection of Ernst and Young LLP for contract #07-4152 was in
compliance with the provisions outlined in Chapter 11.45, Florida Statutes. At the Board meeting of
July 24, 2007 the Board approved Contract #07-4152 and awarded a three year auditing services
contract for Collier County to Ernst and Young LLP. This request begins the 2009 audit process,
including interim audit services.
Section 4 of Agreement #07-4152 outlines contract escalation of no more than 5%. The proposed
amount is within the 5% provided for in Section 4.
FISCAL IMPACT: The proposed amount of $639,400 is within the 5% escalation of costs
previously agreed. The proposed amount includes costs of up to six major grant program audits.
Should the number of major grant programs exceed six the contract states that additional programs will
be billed at $8,800 per program. For purposes of comparison, there were 11 major programs in FY-
2008. Funds will be encumbered in the amount of $639,400 during FY-2009, as interim services will
begin prior to the fiscal 2009 end., and unspent amounts will roll forward into FY -2009 as the audit
progresses. The majority of the $639,400 will be paid during FY-201O. The payments made in the
respective fiscal years will not exceed contracted amounts, and the Board will be informed via
executive summary if the number of rnajor programs audited exceeds six in FY-2009. Budget of
$78,550 remains as unspent and unencumbered from the FY-2008 audit and will be encumbered for
the FY -2009 audit, and as such the additional budget required is $560,850. A budget amendment
allocating $560,850 from 001 Reserves is required.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with
this executive summary.
LEGAL CONSIDERATIONS: County Attorney approval is required prior to execution of the FY-
2009 engagement letter.
RECOMMENDA TION: That the Board of County Commissioners approves year three of Contract
#07-4152 with Ernst and Young LLP for audit services in the amount of $639,400 for the fiscal year
2009 audit, authorizes the County Manager or his designee to execute the engagement letter and
approves a budget amendment in the amount of $560,850 to fund anticipated costs associated with the
FY -2009 audit.
-
Prepared By: Derek M. Johnssen, General Accounting Manager, Office of the Clerk of the Circuit
Court
Page 1 of 1
Agenda Item No. 16J4
June 9, 2009
Page 2 of 7
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16J4
To obtain Board approval of year three of Contract #07 -4152. Auditing Services for Collier
County, with Ernst and Young LLP, in the amount of $639400 and authorize execution of an
official engagement letter and budget amendment for audit services.
Meeting Date:
6/9/2009 9:00:00 AM
Prepared By
Derek Johnssen
General Account Manager
Date
Clerk of Courts
Finance
5/28/2009 2:07:35 PM
Approved By
Crystal Kinzel
Director of Finance
Date
Clerk of Courts
Finance
5/28/2009 2:30 PM
Approved By
Lyn Wood
Purchasing Agent
Date
Administrative Services
Purchasing
5/28/20094:33 PM
Approved By
Steve Carnell
Purchasing/General Svcs Director
Date
Administrative Services
Purchasing
5/28/20094:35 PM
Approved By
Mark Isackson
Budget Analyst
Date
County Manager's Office
Office of Management & Budget
6/2/2009 10:02 AM
Approved By
Leo E. OChs, Jr.
Board of County
Commissioners
Deputy County Manager
Date
County Manager's Office
6/2/20092:10 PM
file://C:\AgendaTest\Export\131-June%209.%202009\ 16.%20CONSENT%20AGENDA \ 16J.... 6/3/2009
a d/Yt4~ I21J . -r;;
CONTRACTIWORK ORDER MODIFICATION
CHECKLIST FORM
B (! ~ .A.genda item No. 16J4
. ..-/ June 9, 2009
,,1 page 3 of 7
Iu t!-d' SfJ.."/tf/
.;IV
PROJECT NAME: Auditing Services_ PROJECT #:
PROJECT MANAGER:_Derek Johnssen
BID/RFP #: 07-4152_MOD #: 6
PO#:
WORK ORDER #:
DEPARTMENT:_Clerk's Finance CONTRACTOR/FIRM NAME: Ernst & Young
Original Contract Amount: $ _560,000
(Starting Point)
Current BCC Approved Amount: $_1,239,000
(last Total Amount Approved by the BCC)
Current Contract Amount: $_1,299,000
(Including All Changes Prior To This Modification)
Change Amount: $_639,400
Revised ContractIWork Order Amount: $_1,938,400
(Including This Change Order)
Cumulative Dollar Value of Changes to
this ContractIWork Order. $_1,378,400
Date of Last BCC Approval_6/10/08 Agenda Item # _16.J.4
Percentage of the change over/under current contract amount_S6A8
Formula: (Revised Amount / Last BCC approved amount)-1
%
CURRENT COMPLETION DATE (S): ORIGINAL:
Continuino
CURRENT:
Describe the change(s):_ To add fees for the FY-2009 external audit. FY-2009 is the third year of service under
Contract # 07-4152, originally bid in FY -2007. The contract authorizes additional renewal periods. Each year's renewal
costs are added to the original contract amount.
Specify the reasons for the change(s) x 1. Planned or Elective (" 2. Unforeseen Conditions (" 3. Quantity
Adjustments r 4. Correction of Errors (Plans, Specifications or Scope of Work) r 5. Value Added
r 6. Schedule Adjustments Note: One or more may be checked, depending on the nature of the change(s).
Identify all negative impacts to the project if this change order were not processed: _Non-compliance with Florida
Statutes.
This change was requested by: x Contractor/Consultant x Owner rI Using Department r CDES
rDesign Professional r1Regulatory Agency (Specify) rOther (Specify)
ION IN NEGOTIATIONS: r Yes x No
Date: s/u/zoo,
REVIEWED BY:
I)'
Date: _~/26/tJ9
(
Revised 11.19.2007
CHANGE ORDER
Agenda Item No. 16J4
June 9, 2009
Page 4 of 7
CHANGE ORDER NO.
4
CONTRACT NO._07-4152___
BCC Date: __7/24/07
Agenda Item: _16FI J_._____
TO: Ernst & Young
100 NOItheast Third A venue, #700
Ft. Lauderdale, FL 33301
DA TE: 4/2/09
PROJECT NAME:
Auditing Services for Collier County
Under our AGREEMENT dated _July 24
,2007.
You hereby are authorized and directed to make the following change(s) in accordance with tenns and conditions of
the Agreement: Add fiscal year 2009 fees of $639,400 pursuantto engagement letter supplement dated April I, 2009.
FOR THE Additive Sum of: _Six Hundred Thirty-Nine Thousand Four Hundred Dollars ($639.400.00).
Original Agreement Amount
$
$-
$
739.000.00
560.000.00
Sum of Previous Changes
This Change Order Adds
639.400.00
Present Agreement Amount
$
J .938.400.00
The time for completion shall be (increase or decrease) by __N/A_ calendar days due to this Change Order.
Accordingly, the Contract Time is now _N/A L_) calendar days. The substantial completion date is
_N/A and the final completion date is _N/A . Your acceptance of this Change Order shall
constitute a modification to our Agreement and will be perfonned subject to all the same terms and conditions as contained in
our Agreement indicated above. as fully as if the same were repeated in this acceptance. The adjustment, jf any, to the
Agreement shall constitute a full and final settlement of any and all claims of the Contractor arising out of or related to the
change set forth herein, including claims for impact and delay costs.
Acceptod, '/lh t d t.,
CONTRACTOR:
Ernst & Young
,2009
Fe NTY COMMISSIONERS
COUNTY, FLORlDA
L__-----
By:
John iSanto
/
DEPARTMENT DfRECTOR
BY~
Crystal ;lei
B CONTRACT SPECIALIST ~
Y. .~ ___
Aaenda Item f'Jo. 16J4
~ June 9, 2009
Page 5 of 7
1111111I1111I111111111I11iI1I1I11I'11I""" ED ERNST & YOUNG
Ernst & YOUI'>Q LLP
SUite 1200
401 Ea~t Jilck~()n Street
Tampa, Flor iaa 33602
Dlrert: + 1 813 225 4800
fa,: d 813 225 4711
"Mw,ey.com
April 1. 2009
Mr. Stephen Y. Carnell
Purchasing/General Services Director
Collier County Government Center
Purchasing Depar1ment
3301 Tarniami Trail East
Naples, Florida 34112
Dear Mr. Carnell:
We appreciate the opportunity to continue to provide audit services to Collier County, Florida
(the County) during the year ended September 30, 2009. This letter documents our understanding
of the fees for these services. All other information as set forth in our Agreement dated July 24.
2007 for Auditing Services for Collicr County and related Exhibits (Agreement #07-4152)
remains current unless indicated otherwise in this letter.
Fees and Billings
The fee for our audit services for the tiscal year ending September 30, 2009 is as follows:
Base fee
Out-of-pocket expenses
Sub total
Collier Area Transit Agreed Upon Procedures
Collier Sheriff Investigative Funds
Agreed Upon Procedures
Total
$584.600
32,800
617,400
14,300
7.700
.$.6J.2dQ.Q *
We will submit our invoices according to the attached billing schedule.
*Should the number of the County's grantprogmms required to be audited as major exceed six
(6) programs. our fee for such additional major programs ",'ilI be $8,800 per program and an
additional billing will be made accordingly, Also, as indicated in our prior year engagement
letter, a scope change resulted during fiscal year 2008 related to the County's adoption of GASB
Statement No. 45. Our fees for the additional scope procedures during fiscal year 2009 related to
GASB Statement No. 45 will be billed at the following rates, with the total not to exceed
$ ] 0,000. Additionally. should we incur additional fccswilh respect to scope changes resuiting
from the County's adoption of nc".' accounting or auditing pronouncements during tiscal year
2009. such as GASB Statement No. 49 and 51. we will so notify the County of the estimated
hours and bill the County based on the additional audit effort required at the foilowing billing
rates.
.:. .,,,..- ~'." ,,'... ,.., . .: .,.... - ,,! ".. I~">',:
Agenda Item No. 16J4
June 9, 2009
Page 6 of 7
III
1111111111111111111111111111111111111,," .,,, au ERNST & YOUNG
Collier County. Florida
Page 2
.'\pril 1. 2009
Level
Partner
$ 401
$ 286
$ 232
$ 171
$ 132
Senior f\.1anager
Manager
Senior
StatI'
We are expecting to complete the audits of the Constitutional OtJicers and issue the related
reports by December, 2009, and complete the audit of the Board of County Commissioners and
issue our report on the County's financial statements by February, 20 I 0, contingent upon timely
receipt of the client prepared financial information and financial statements as well as related
information from third parties such as the receipt of legal letters and any third party reports.
EY appreciates the opportunity to be of assistance to the County. Please sign below on behalf of
the County and return it to Tom Bradley, Ernst & Young LLP, 100 N.E. ]rd Avenue, Suite 700.
Fort Lauderdale, FL 33301 to indicate your agreement with the telms of this supplemental letter
to Agreement #07-4152. By your signature below, you confirm that the County. through its
Board of Commissioners. has expressly authorized you to enter into this Agr~ement on behalf ot:
and to bind, the County.
Yours very truly,
qD>d
John DiSanto
Executive Director
Attachment: Billing Schedule
Agreed and accepted by:
Collier County, Florida
By:
..
Mr. Stephen Y. Camdl
Purchasing/Gt:neral Services Director
Date
... I'. . Of I", .' J : p . " , '.'~ ~ ' I"'! J'. I'" -r.,
111111111111111111111111111111I11111111,,"" gg ERNST & YOUNG
Collier County, Florida
Attachment: Billing Schedule
Agenda Item No. 16J4
June 9. 2009
Page 7 of 7
Page 3
April 1. 2009
Task I Meet \vith executives and financial $20.000 Upon Completion of all items
management to co-develop expectations. associated \-\lith Task 1.
Conduct planning meetings. develop detailed
audit plan.
Task 2 Begin interim fieldwork (understanding and $50,000 Upon Completion of all items
testing of internal controls and systems). associated with Task 2.
Task 3 Significant completion of control testing. risk $50,000 Upon Completion of al1 items
assessments and audit planning. associated with Task 3.
Task 4 Begin single audit planning and interim S50.000 lJpon Completion of all items
testing. associakd with Task 4.
Task 5 Begin perfonnance of substantive testing of $100.000 Upon Completion of all items
account balances - Constitutional Officers. associnted with 'f'2sk 5.
Resume single audit testing based on year-
end SEF A.
Task 6 Begin performance or substantive testing of $100.000 Upon Completion of aU items
account balances - Board of County assoeimed with Task 6.
Commissioners.
Task 7 Significant completion of field\vork of $50,000 Upon Completion of aU items
Constitutional Officers. associated with Task 7.
Task 8 Board financial statement audit significantly $80,000 Upon Completion of all items
complete. associated with Task 8.
Task 9 Single Audit significantly complete. $80,000 Upon Completion of all items
associated with Task 9.
Task 10 Issue opinion on Comprehensive Armual $59,400 Upon completion of all items
Financial Report (CAFR), including all associated with Task] O.
Constitutional Officer reports. Issue all other
required reports, including Single Audit.
TAT' 1<''C'J;'>'< or?-1 O. fin
.. ,,~ .. AL .I. A..-iJ..J
4JV..J./ '14vv f
. . .... '". .'r ~ 11'1 : I .. .. ... ,;'. .1.. ,. . I" t...~