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Agenda 12/08/2015 Item #16J112/8/2015 16.J.1. EXECUTIVE SUMMARY To obtain Board approval for an increase to Contract #13 -6132, "Annual Audit Services," with Clifton Larson Allen LLP, in an amount not to exceed $10,000, to provide for the impact of changes in accounting and audit standards. OBJECTIVE: To obtain Board approval for an increase to Contract #13 -6132, "Annual Audit Services," with Clifton Larson Allen LLP, to provide for the impact of changes in accounting and audit standards. CONSIDERATIONS: The selection of Clifton Larson Allen LLP for Contract #13 -6132 was in compliance with the provisions outlined in Chapter 11.45, Florida Statutes. On September 10, 2013, Item 16(J)12 the Board approved entering into Contract #13 -6132 with Clifton Larson Allen LLP. Contract #13 -6132 awarded a three year auditing services contract for Collier County to Clifton Larson Allen LLP, with two (2) one (1) year extensions. Sections 3 and 5 of Agreement #13 -6132 outline the process for the approval of additional services and contract modifications. More specifically, the FY -2015 engagement letter addresses certain modifications as follows: Changes in accounting and audit standards Standard setters and regulators continue to evaluate and modify standards. Such changes may result in new or revised financial reporting and disclosure requirements or expand the nature, timing, and scope of the activities we are required to perform. To the extent that the amount of time required providing the services described in the letter increases due to such changes, our fee may need to be adjusted. We will discuss such circumstances with you prior to performing the additional work. This amendment is necessitated by the American Institute of Certified Public Accountants' audit standards requiring auditors to intensify their Florida Retirement System census testing and contribution reconciliations in order to provide an increased level of assurance under the new pension reporting standards. In addition, the Florida Auditor General has promulgated new rules requiring the examination, by the auditor, of expenditures of E911 funds in accordance with Florida Statutes 365.172 and 365.173 and a determination of Clerks of Courts' compliance with Florida Statutes 61.181 related to alimony and child support payments. Alimony and Child Support.Payments $3,120.00 E911 1,500.00 Deepwater Horizon* - Required FRS census testing and contribution reconciliation ** 5,370.00 $9,990.00 *assumes no significant activity in FY -2015 ** testing for the BOCC and Sheriff FISCAL IMPACT: The fiscal impact of this action will not exceed $10,000.00 and budget is available in the General Fund, in the "Other General and Administrative" fund center, line item "County -Wide Auditing ". No budget amendment will be required by this action. The total cost of the FY -2015 audit will be $340,000.00. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this executive summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for Board approval. —SRT RECOMMENDATION: That the Board of County Commissioners approves an amendment to Contract #13- 6132 with Clifton Larson Allen LLP, allowing for an increase for FY -2015 audit services, to compensate for the impact of changes in accounting and audit standards. Packet Page -2118- 12/8/2015 16.J.1. Prepared By: Derek M. Johnssen, Assistant Finance Director, Office of the Clerk of the Circuit Court Packet Page -2119- 12/8/2015 16.J.1. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.J.1611. Item Summary: To obtain Board approval for an increase to Contract #13 -6132, "Annual Audit Services," with Clifton Larson Allen LLP, to provide for the impact of changes in accounting and audit standards. Meeting Date: 12/8/2015 Prepared By Name: JohnssenDerek Title: Assistant Finance Director 11/24/2015 10:11:28 AM Submitted by Title: Assistant Finance Director Name: JohnssenDerek 11/24/2015 10:11:29 AM Approved By Name: MarkiewiczJoanne Title: Division Director - Procurement Services, Procurement Services Date: 11/24/2015 1:48:36 PM Name: KinzelCrystal Date: 12/2/2015 11:35:42 AM Name: TeachScott Title: Deputy County Attorney, County Attorney Date: 12/2/2015 11:51:53 AM Name: KlatzkowJeff Title: County Attorney, Date: 12/2/2015 11:56:40 AM Name: IsacksonMark Packet Page -2120- 12/8/2015 16.J.1. Title: Division Director - Corp Fin & Mgmt Svc, Office of Management & Budget Date: 12/2/2015 2:06:57 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 12/2/2015 3:14:57 PM Packet Page -2121- 12/8/2015 16.J.1. Procurement Services Ct?ter C+E'1uraiy Change Order Form ® Contract Modification ❑ Work Order Modification ❑ Amendment Contract #: 13 -6132 Change #:1 2 Purchase Order #: NA Project #: NA Contractor /Firm Name: Clifton Larson Allen Contract/Project: Fnnual Audit Services Project Manager Name: Derek Johnssen Division Name: I Finance Original Contract/Work Order Amount $ 990,000.00 9/10/13;16,112 Original BCC Approval Date; Agenda Item # Current BCC Approved Amount $ 990,000.00 9/10/13 ;16J12 Last BCC Approval Date; Agenda Item # Current Contract/Work Order Amount $ 1,007,000.00 9/9/2016 SAP Contract Expiration Date (Master) Dollar Amount of this Change $ 9,990.00 2.73% Total Change from Original Amount Revised Contract/Work Order Total $ 1,016,990.001 2.73% Change from Current BCC Approved Amount Cumulative Changes $ 26,990.00 0.99% Change from Current Amount Completion Date, Description of the Task(s) Change, and Rationale for the Change Notice to Proceed NA Original NA Last Approved NA Revised Date NA Date I I Completion Date Date I I (Includes this change) # of Days Added I NA Select Tasks ❑ Add new task(s) ❑ Delete task(s) ❑ Change task(s) ® Other (see below) Provide a response to the following: 1.) detailed and specific explanation /rationale of the requested change(s) to the task(s) and I or the additional days added (if requested); 2.) why this change was not included in the original contract; and, 3.) describe the impact if this change is not processed. Attach additional information from the Design Professional and /or Contractor if needed. 1. This Change is to increase the contract by $9,990.00 in response to new requirements in the 2015 Rules of the Auditor General for the audits of alimony and child support payments and E911 funds and new auditing standards impacting the auditor's examination of the Florida Retirement System (FRS). 2. This change was not included in the original contract because the new audit requirements were enacted this year in the 2015 Rules of the Auditor General and by the audit standards set by the American Institute of Certified Public Accountants. 3. If this change is not processed, alimony /child support payments, E911 funds and FRS will not be audited according to the Rules of the Auditor General and auditing standards, respectively. Prepared by: / / (Projedt,Mifnager Name and No74CE — GLQY-L. Date: //- Z 3•ZOLS Acceptance of this Change Order shall constitute a modification to contract / work order identified above and will be subject to all the same terms and conditions as contained in the contract / work order indicated above, as fully as if the same were stated in this acceptance. The adjustment, if any, to the Contract shall constitute a full and final settlement of any and all claims of the Contractor / Vendor / Consultant / Design Professional arising out of or related to the change set forth herein, including claims for impact and delay costs. /ham e A �.. Accepted by: Date: 11/23115 (Contractor / Vendor / Consultant / Design Professional and Name of Firm, if project applicable) Approved by: Date: (Design Profe . al and ame of Firm, if project applicable) { Approved by: Lt Date: rocureme t Professi al) t� ( Packet Page -2122- i Clifton LarsonAllen Derek M. Johnssen Assistant Finance Director Office of the Clerk of the Circuit Court Collier County, Florida 3299 Tamiami Trail East Naples, FL 34112 Dear Mr. Johnssen: 12/8/2015 16.J.1. Clifton LarsonAllen LLP 6810 International Center Boulevard Fort Myers, FL 33912 -7129 239-226-9900 1 fax 239- 226 -9950 CLAconnect.com I am requesting an amendment to contract No. 13 -6132 to reflect changes in the scope of services due to changes in the Rules of the Auditor General and changes in auditing standards related to pension plans. The Auditor General has added two new requirements for fiscal 2015 audits: 1) the determination that the County accounted for and expended E911 funds in compliance with Section 365.172(10) Florida Statutes, and 2) the determination that the Clerk of Court complied with Section 61.181 Florida Statutes. In addition, the American Institute of Certified Public Accountants requires testing of member census information submitted to the Florida Retirement System (FRS) and a reconciliation of contributions to FRS to the actuarial information. Based on our estimate of hours to perform these additional tasks, our fees will not exceed $10,000. I appreciate your consideration of this item. Regards, Clifton LarsonAllen LLP Martin A. Redovan, CPA Principal An irdepaxdert nmftff d Nelda Irrter Aiad INTERN ATICIN AL Packet Page -2123-