Agenda 06/10/2008 Item #16J 4
P.,aenda item ~~o. 16-..14
- June 10.200&
n '1 ~ 5,
rage 0,;
ij
EXECUTIVE SUMMARY
To obtain Board approval of year two auditing services according to agreement #07-
4152 with Ernst and Young LLP, and authorize execution of an official engagement
letter and budget amendment for services in the amount of $609,000.
OBJECTIVE: To request Board of County Commissioner approval of the second year
of a three year auditing services agreement with Ernst and Young LLP and approve the
corresponding budget amendment in the amount of $609,000.
H
~
CONSIDERATIONS: 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.
;i
;
~
rt
"
,
At the May 27, 2008 Board meeting the Board approved contract changes to complete the
2007 audit. This request is to begin the 2008 audit process, including interim audit
services.
i
,
,
i
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 $609,000 is within the 5% escalation of
costs previously agreed. This amount includes costs of up to 6 major grant program
audits. Should the number of major grant programs exceed six, additional programs will
be billed at $8,400 per program. Funds will be encumbered in the amount of $609,000
during FY-2008, as interim services will begin prior to the fiscal year 2008 end, and
unspent amounts will roll forward into FY-2009 as the audit progresses. The majority of
the $609,000 will be paid during FY-2009. The payments made in the respective fiscal
years will not exceed contracted amounts.
GROWTH MANAGEMENT IMPACT: There IS no growth management impact
associated with this executive summary.
II
"
RECOMMENDATION: That the Board of County Commissioners approves year two il
of contract #07-4152 with Ernst and Young LLP for audit services in the amount of
$609,000 for the fiscal year 2008 audit, authorizes the County Manager or his designee to
execute the engagement letter and approves a budget amendment to fund anticipated
costs associated with the audit.
Prepared By: Derek M. Johnssen, General Accounting Manager
I
J
,
,.
a
"
il
Page I of 1
,!\.,gerlda item ~~o. 16J4
June 10.2008
Page 2 of 5
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
16J4
Item Summary:
To obtain Board approval of year two auditing services according to agreement #07 -4152
with =rnst and Young lLP, and authorize exe::.:utlon of an official engagement letter and
budget amendment for services In the amount of $609,000.
Meeting Date:
6/10,2008900.00 AM
Approved By
John A. Yonkosky
Director of the Office of Management
Date
County Manager's Office
Office of Management & Budget
614/200811:56 AM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
6/4/200812:11 PM
file://C:IAgendaTestIFxnortl I 09-.hme%70l O%?O?OORI lli%?OrONSFNT%?OAGFNnA I Iii
1i/4000R
!Ell ERNST & YOUNG
. fm,'l.\m"'l!.I'"
l>"
. ,-.
i~,:-.'m \!o. 6J4
C"LJne i;], 20CJ8
:3 of 5
, -, '. ,,~ \. :k,
"!,,, ;'
April 2, 2008
Mr. Stephen Y. Carnell
Purchasing/General Services Director
Collier County Government Center
Purchasing Department
3301 Tamiami Trail East
Naples, Florida 34112
Dear Mr. Carnell:
We appreciate the opportunity to continue to provide services to Collier County, Florida (the
County) during the year ended September 30, 2008. 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 Collier 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 fiscal year ending September 30, 2008 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
$ 556,763
31,237
588,000
13,650
7.350
$ 609,000*
We will submit our invoices according to the attached billing schedule.
* Should the number of the County's grant programs required to be audited as major exceed
six (6) programs, our fee for such additional major programs will be $8,400 per program and
the amount of the last billing will be adjusted accordingly. Additionally, should we incur
additional fees with respect to scope changes resulting from the County's adoption of new
accounting or auditing pronouncements during fiscal year 2008, such as GASB Statement
No. 45, we will so notifY the County of the estimated hours and bill the County based on the
additional audit effort required at the following billing rates:
Level
Partner
Senior manager
Manager
Senior
Staff
$ 383
$ 273
$ 221
$ 163
$ 126
0805-09478]0
\ 111('111IH'f drill III hll...;t l\ Y()un,~~ Clol)..lI I i:llil1'(/
A:18nda Item No. i 6J4l
"" ,June 10, 2008
Page4of~
E!J ERNST & YOUNG
. Eros! 8. \oun~ UP
Collier County, Florida
Page 2
April 2, 2008
Ernst & Young appreciates the opportunity to be of assistance to the County. Please s~ below
on behalf of the County and return it to Tom Bradley, Ernst & Young LLP, 100 N.E. 3 Avenue,
Suite 700, Fort Lauderdale, Florida 33301 to indicate your agreement with the terms of this
supplemental letter to Agreement #07-4152. By your signature below, you conf1l1l\ that the
County, through its Board of Commissioners, has expressly authorized you to enter into this
Agreement on behalf of, and to bind, the County.
Yours very truly,
~"'h/..Lp
Attachment: Billing schedule
",
jl
'I
Agreed and accepted by:
Collier County, Florida
By:
Mr. Stephen Y. Carnell
Purchasing/General Services Director
e
"
fi
:Ii
"
+i
080S-Q947810
\ I1lcn:hl.'r lirll1 O!' flTl..;l ,\, \'OLJIl,: (,lo!",lll irniu'd
i18in r~O_ i oJ
J'Jne 10. ::::00
r-'c:;;e :) OJ
E1 ERNST & YOUNC
. Ernst &. )nung IlP
Collier County, Florida
Page 3
April 2, 2008
Attachment: Billing schedule
Task I Meet with executives and financial Upon Completion of all items
management to co-develop associated with Task I.
expectations. Conduct planning
meetings, develop detailed audit
plan. Begin interim fieldwork
(understanding and testing of
internal controls and systems).
Be~in siMle audit olannin~. $ 60 950
Task 2 Significant completioo of control Upon Completion of all items
testing, risk assessments and audit associated with Task 2.
planning. 80,000
Task 3 Begin performance of substantive Upon Completion of all items
testing of account balances - associated with Task 3.
Constitutional Officers. Begin
Single Audit testin~. 82 533
Task 4 Significant completion of Upon Completion of all items
fieldwork of Constitutional associated with Task 4.
Officers. Begin performance of
substantive testing of account
balances - Board of County 162,533
Commissioners.
Task 5 Board financial statement audit Upon Completion of all items
simificantlv comolete. 82,534 associated with Task 5.
Task 6 Single Audit significantly Upon Completion of all items
comolete. 80,000 associated with Task 6.
Task 7 Issue opinion on Comprehensive Upon completion of all items
Annual Financial Report (CAFR), associated with Task 7.
including all Constitutional Officer
reports. Issue all other required
reports, includin~ Single Audit 60,450
Total Fee' $ 609,000
j
0805.0947810
,\ Ilw!1lhc( l"ir1ll111 1-1"11"1(\ Y{lllll!~ (,foh.11 j Imil('ll
j