Agenda 05/27/2008 Item #16J 6
Agenda Item No. 16J6
May 27, 2008
Page 1 of7
EXECUTIVE SUMMARY
Recommendation to approve Change Order #1 to add $45,000 to Contract #07-4152,
"Auditing Services for Collier County", with Ernst and Young LLP, and authorize a
budget amendment of $80,000 to cover the full amount of the agreement.
OBJECTIVE: Approval of Change Order #1 to add $45,000 to Contract #07-4152, "Auditing
Services for Collier County", with Ernst and Young LLP.
CONSIDERATIONS: The selection of Ernst and Young LLP for contract #07-4152 was in
compliance with the provisions outlined in Chapter 218, Florida Statutes. The $560,000 base
cost of the 2007 audit was approved by the Board on July 24, 2007, 16(F)11, Additional
services of $25,000 related to a State Revolving Fund close out audit and a Collier Area
Transportation audit were approved by the Board on January 15, 2008 item 16(E)5, The
following is a chronology of events related to the contract which require reconciliation by
Change Order #1:
1. The base cost of the 2007 audit was $560,000, and included six major program audits. The
original budget in the amount of $525,000 was insufficient to cover these costs, Additionally,
based upon Single Audit criteria, nine total major program audits were identified and
performed during the FY-07 audit. Each of the three additional audits above the base costs
$8,000, per the original contract, for an additional amount for the 2007 audit of $24,000,
-
,
2. Preparation of the Sheriff's investigative fund report per the original agreement at a cost of
$7,000,
3. An additional Transportation program under CFDA # 20.205 for fiscal year 2006 required
prior year audit review, The proposed cost of this service is $14,000,
A summary schedule of costs is contained in Exhibit A and reconciles all of the expenses
incurred since contract inception.
LEGAL CONSIDERATIONS: The County Attorney's Office has reviewed and approved this
item for legal sufficiency. -SRT
FISCAL IMPACT: For the FY-07 annual audit, $525,000 is budgeted in the General Fund,
within the cost center "Other General and Administrative Costs", The revised total General
Fund cost of the 2007 audit in the amount of $605,000 exceeds the current budgeted amount
by $80,000. A budget amendment is required in the amount of $80,000, to be taken from the
General Fund Reserves Funds in the amount of $12,000 were budgeted and paid from
Utilities Fund 410 and $13,000 will be paid from Transportation Funds for the CAT report,
GROWTH MANAGEMENT IMPACT: There is no growth management impact.
RECOMMENDATION: That the Board of County Commissioners (1) approves Change
/---- Order #1 to Ernst and Young LLP in the amount of $45,000, (2) authorize the County
Manager or his designee to execute Change Order #1, and (3) approves the required budget
amendment in the amount of $80,000 to cover additional FY-07 audit services,
Prepared by: Crystal Kinzel, Director of Finance, Clerk of Courts
Page 1 of 1
Agenda Item No. 16J6
May 27, 2008
Page 2 of 7
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
16J6
Meeting Date:
Recommendation to approve Change Order #1 to add $45,000 to Contract #07 ~4152.
"Auditing Services for Collier County", with Ernst and Young LLP. and authorize a budget
amendment of $80,000 to cover the full amount of the agreement
5/27/2008 9.0000 AM
Prepared By
Crystal Kinzel
Director of Finance
Date
Clerk of Courts
Finance
512112008 1 :15:58 PM
Approved By
Scott R. Teach
Assistant County Attorney
Date
County Attorney
County Attorney Office
5/21/20081 :59 PM
Approved By
Steve Carnell
Purchasing/General Svcs Director
Date
Administrative Senfices
Purchasing
5/21120084:43 PM
Approved By
John A. Yonkosky
Director of the Office of Management
Date
County Manager's Office
Office of Management & Budget
51211200B 4:46 PM
Approved By
James V. Mudd
Board of County
Commissioners
County Manager
Date
County Manager's Office
5/21/200B 5:05 PM
file://C:\AgendaTest\Export\ I 08-May%2027,%202008\ 16, %20CONSENT%20AGENDA \ 1 ". 5/2112008
Collier County, Aorida
Auditing Services Contract II 07~4152
Ernst and Young
Contract breakout:
2007 contract services
CFDA 14.218 - CDBG
CFDA 20.205 - Highway Planning and Constr.
CFDA 14,239. HOME
CFDA 16.606. 5CAAP
CFDA 66.468 . 5RF
CFDA 52.002. Gordon River Greenway
Total original 2007 base contract
SRF dose out audit (Fund 410)
CAT report (to be pd by Transportation Fund)
Sheriff's investigative funds report
C5fA 52.901. 5HIP
C5FA 37,039. 5WRWP
CSFA 55.026. TRIP
Prior Year Transportion program 20.205
Total
EXHIBIT A
$
512,000,00
8,000,00
8,000,00
8,000,00
8,000,00
8,000,00
8,000.00
560,000,00
12,000,00
13,000,00
7,000,00
8,000.00
8,000.00
8,000,00
14,000,00
$
630,000.00
Cumulative
Over Base" K"
Six major prgms in base
80CC App. 7/24/2007, 16(F)1l
2.14% BOCC App. 1/15/2008, 16(EI5, Item 2
4.46% 80CC App. 1/15/2008, 16(E)5, Item 10 @ 12K
5.71%
7.14%
8.57%
10.00%
12.50%
- 3 major programs over base induded in contract
- prior year transportation program
Agenda Item No, 16J6
. May 27, 2008
Page 4 of 7
CHANGE ORDER
CHANGE ORDER NO
CONTRACT NO._07.~152_
Bce Datc: _7/24/07
Agenda Item: _16(1')11
TO: Ernst & Young
100 Northeast Tlurd Avenue, #700
Ft Lauderdale. FL 33301
DATE: 4/18/08
PROJECT NAME:
Auditinll: Services for Collier County
Under OUT AGREEMENT dated _July 24, 2007
You hereby arc authorized and directed to make the following change(s) in accordance with tcnns and
conditions of the Agreement: Add 3 major grant program audits@$8000 each, report on Sheriffs investigative
funds @ $7,000 and $14,000 Time and Material for audit ofa Transportation Gram,
FOR HIE (Additive) Sum of: Forty-five Thousand Donars ($_ 45,000,00~,
Original Agreement Amount $ 560,000,00
.-
Sum of Previous Changes $ 25,000.00
This Change Order adds $ 45.000,00
Present Agreement Amount $ 630,000,00
Your acceptance of this Change Order shall constitute a modification to our Agreement and will be performed
subject to all the same tcrms and conditions as containcd in our Agreement indicated above, as fully as if the
same were repcated in tbis acceptance, The adjustment, if 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,
Accepted: ~ L q ,2008
CONTRAC~
Ernst & Young, LLP
OWNER:
BOARD OF COUNTY COMMISSIONERS
o COLLIER COUNTY FLORIDA
VPARTMENTDIRECTOR <
By: M~..~R
Crysta ' el
CONTRACT SPECIALIST
/----
By:
Lyn M. Wood
CONTRACTIWORK ORDER MODIFICATION
CHECKLIST FORM
Agenda Item No, 16J6
May 27, 2008
Page 5 of 7
PROJECT NAME: Audit,ng Services for Collier County PROJECT #: _N/A_ PROJECT MANAGER: Derek Johnssen
BID/RFP #: 07.4152 MOD #:
PO#:
WORK ORDER #:
DEPARTMENT:_Clerk's Finance
CONTRACTOR/FIRM NAME: Ernst & Youna
Original Contract Amount:
$ _560 000 00
(Sta~ing POint)
Current BGe Approved Amount:
$ 560,00000
(Last Total Amount Approved by the BCC)
,
,
I Current Contract Amount:
$ 585,000,00
(Including All Changes Prior To This Modification)
Change Amount:
$ 45,00000
Revised ContractIWork Order Amount:
$ 630,00000
(Including This Change Order)
Cumulative Dollar Value of Changes to
this ContractIWork Order: $_70,00000
Date of Last BCC Approval_7/24/07 Agenda Item # _16F11
Percentage of the change over/under current contract amount_12.5
Formula: (Revised Amount / Last BCC approved amount)-1
%
CURRENT COMPLETION DATE (S): ORIGINAL:
CURRENT:
Describe the change(s):_To add cost for 3 additional major grant audits(3@$8,000), for Report on Sheriff's Investigative
Funds ($7,000), and for Transportation grant audit for prior year 2006 ($14,000),
Specify the reasons for the change(s) r 1. Planned or Elective r 2. Unforeseen Conditions r. 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: _Required audit would not be
complete according to Statute,
This change was requested by: PIContractor/Consultant rI Owner rl Using Department C CDES
CDesign Professional r1Regulatory Agency (Specify) r Other (Specify)
CONTRACT SPECIALIST PARTICIPATION IN NEGOTIATIONS:
r
Yes
r;; No
APPROVE~
REVIEWED BY
Date:
O/}.JJ /0 f
I I
Date:
Contract Specialist
Revised 11.19.2007
Agenda Item No. 16J6
May 27, 2008
i!J ERNST & YOUNG
. Emfl & Ymmg ur _ Phone: ('J~.:lj R!ld-nOUn
Suilt'701l \\,W\\.t'yt.:tml
lOll N'Hlhc.nl Third '\\'l.'nUl'
Fori t.ll.Jdncl.,k. rlnrid.l rnlll.lllf('
A pril I. 2008
Mr. Slephen Y. Carnell
Purchasing/General Services Director
Collier County Govel nment Center
PUlchasing Department
3301 Tamiami Trail East
Naples, Florid. 341 12
Oem Mr. Carnell:
PmSlJant to our agreement dated July 14. 2007 !'or Auditing Services ror Collier County
(Agleement #07-4152) C1nd our engagement ~etler incltlded therein. we confirm the following
with respect to the provisions contained fOJ additionlll fees for the following services and hereb)
request tha.t the necessary change order be executed.
Grant majOl programs in excess of six (at $8,000 per progrnm)
Sheriff's agreed upon procedures report on
investigative funds (issued February 25, 2008)
Tolal of change order
$24,000
7.000
$31.000'
'The Agreement provides the following:
"Should the number of the County's grant plOgrams required 10 be alldiled as major exceed six
(6) plOgrams, ollr fee for such additional major programs will be $8,000 per program and Ihe
amount of lhe last billing will be adjllsted .ccordingly, Additionally, OUI lee 10 perform and
issue a reporl on Agreed Upon Procedures related to the Sheriffs Investigative Funds will be
$7,000 and lhe amotlnt of the last billin8 will be ndjllsted accordingly The County will add such
additional fees 10 lhe Agreement amount by written Change Order,"
fhe actual number of grant programs required to be audited as major programs is nine (9)
programs, Therefore, the additional fee as stated above is for 3 (three) grant programs,
Yoms very tl'tlly.
1:~;~
Partner
^ mcmbcl linll n( Ernst &. Young Glolml Limllcd
~
Agenda Item No. 16J6
May 27, 2008
Page 7 of 7
May 5, 2008
Crystal K. Kinzel
Director of Finance and Accounting
Clerk of the Circuit Court
Collier County Government Center
2671 Airport Road S.
Naples, Florida 34112
Per your request and based on our preliminary review of the detail of the expenditures
provided for the Florida Department of Transportation Grant Program related to FY 2006
expenditures totaling $1,872,112 that were not previously audited as part of the single
audit (Contract Number AOB73, State Relief Program Wilma, CFDA 20.205), we
estimate a "not to exceed" total fee of $13,470 plus expenses of $530 for a total of
$14,000 to perform a program specific audit for this grant program. We derived our fee
based on the following estimated hours at the rates provided in our agreement for
additional work by staff level. We will bill based on the actual time incurred at the
contractual rates which could result in less should the actual hours be less than this
estimate.
Expenses
Total
$2,190
$2,080
$6,200
$3.000
$13,470
$530
Partner
Senior Manager
Senior
Staff
Estimated Hours
6
8
40
25
Rate Per Agreement
$365
$260
$155
$120
Total $14,000
Regards,
Alyson Silva
Ernst & Young
Senior Manager