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Agenda 09/10/2013 Item #16J12 9/10/2013 16.J.12. EXECUTIVE SUMMARY To obtain Board approval of Contract #13-6132, "Auditing Services for Collier County", and authorize execution of an official engagement letter. OBJECTIVE: To obtain Board approval of Contract #13-6132, "Auditing Services for Collier County", and authorize execution of an official engagement letter. CONSIDERATIONS: The selection of CliftonLarsonAllen, CLA for Contract #13-6132 was in compliance with the provisions outlined in Chapter 11.45, Florida Statutes. At the Budget Hearing of September 5, 2013 the Board discussed entering into negotiations with CliftonLarsonAllen, CLA. The result of this negotiation, Contract #13-6132, is attached and awards a three year auditing services contract for Collier County to CliftonLarsonAllen, CLA, with two (2) one (1) year extensions. This request begins the 2013 audit process, including interim audit services and planning. FISCAL IMPACT: The proposed annual amount of$330,000 is 46% less than the cost of the FY- 2012 audit, performed by Ernst and Young LLP. The proposed amount includes costs of up to fifteen (15) major grant program audits. Should the number of major grant programs exceed fifteen (15) in any of the three audit years, the contract states that additional programs will be billed at $4.500 per major program. For purposes of comparison, there were thirteen (13) major programs in FY-2012. Funds will be encumbered in the amount of$330,000 during FY-2013, as interim services will begin prior to the fiscal 2013 year end, and unspent amounts will roll forward into FY-2014 as the audit progresses. 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 major programs audited exceeds fifteen (15) for FY-2013. No budget amendment is required pursuant to this action as sufficient funds are currently available in the General Fund, account assignment 001-103010-632100 — "Other General and Administrative Services" for year one of this procurement. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this executive summary. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: That the Board of County Commissioners approves Contract #13-6132, as negotiated and attached, with CliftonLarsonAllen, CLA for audit services in the amount of$990,000 for three fiscal year audits (2013, 2014 and 2015) and authorizes the County Manager or his designee to execute the engagement letter for audit year 2013. Prepared By: Derek M. Johnssen, Assistant Finance Director, Office of the Clerk of the Circuit Court Packet Page -2989- 9/10/2013 16.J.12. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.J.16.J.12. Item Summary: To obtain Board approval of Contract#13-6132, "Auditing Services for Collier County", and authorize execution of an official engagement letter. Meeting Date: 9/10/2013 Prepared By Name: JohnssenDerek Title: Gen. Accnt Manager-Clerk of Courts 8/12/2013 8:55:11 AM Submitted by Title: Gen. Accnt Manager- Clerk of Courts Name: JohnssenDerek 8/12/2013 8:55:12 AM Approved By Name: MarkiewiczJoanne Title: Manager-Purchasing Acquisition.Purchasing& Gene Date: 8/12/2013 11:52:27 AM Name: MarkiewiczJoanne Title: Manager-Purchasing Acquisition,Purchasing& Gene Date: 8/12/2013 11:57:45 AM Name: WardKelsev Title: Manager- Contracts Administration.Purcnasir�_ & G_ Date: 8/112013 1:52:3 7 PN Name: KinzelCrystal Date: 8/24/2013 9:19:50 AM Name: KlatzkowJeff Title: County Attorney Packet Page -2990- 9/10/2013 16.J.12. Date: 8/26/2013 9:15:47 AM Avow Name: PryorCheryl Title: Management/Budget Analyst, Senior,Office of Manag Date: 8/26/2013 11:35:42 AM Name: Klatzkowieff Title: County Attorney Date: 8/27/2013 11:18:23 AM Name: OchsLeo Title: County Manager Date: 8/29/2013 4:39:07 PM Amok Packet Page -2991- 9/10/2013 16.J.12. AGREEMENT13-6132 for Annual Auditing Services THIS AGREEMENT, made and entered into on this day of 2013, by and between Clifton Larson Allen, authorized to do business in the State of Florida, whose business address is 6810 International Center Blvd, Fort Myers, Florida 33912, (the "Auditor") and Collier County, a political subdivision of the State of Florida, (the "County"): WITNESSETH: 1. COMMENCEMENT. The Contract shall commence upon date of Board Award and Work shall commence upon issuance of a Purchase Order. The County Manager, or his designee, may, at his discretion, extend the Agreement under all of the terms and conditions contained in this Agreement for up to one hundred eighty (180) days. The County Manager, or his designee, shall give the Auditor written notice of the County's intention to extend the Agreement term not less than ten (10) days prior to the end of the Agreement term then in effect. 2. CONTRACT TERM. The contract shall be for a three (3) year period, commencing on Date of Board award, and terminating (3) years from that date. The County may, at its discretion and with the consent of the Auditor, renew the Agreement under all of the terms and conditions contained in this Agreement for two (2) additional one (1) year periods. Pricing after year three (3) 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. Audit engagement letters for FY-2014 and 2015 must be signed by March 31 of the respective audit year. 3. STATEMENT OF WORK. The Auditor shall provide Auditing Services in accordance with the terms and conditions of RFP #13-6132, the Scope of Services set forth in Exhibit A, attached herein and incorporated by reference, and the Auditor's proposal, as referred to herein and made an integral part of this agreement. Th;.. Agreemen- wit include auditing services for other County departments and Constitutional Officers, as well as additional related services as requested and mutually agreed upon by County and Auditor in writing. Additional services related to the annual audit that are not included in Exhibit B Tasks 1 through 7 shall be evidenced by a Change Order to this Agreement. Additional services not related to the annual audit, but requested by other departments and not included in Exhibit B Tasks 1 through 7 shall be evidenced by an Amendment to this Agreement. In either case, these additional services Page l of 17 Packet Page -2992- 9/10/2013 16.J.12. shall be negotiated on an individual basis in compliance with the County Purchasing Policy, and pricing shall be in conformance with the hourly rates identified in Exhibit B. This Agreement contains the entire understanding between the parties and any modifications to this Agreement shall be mutually agreed upon in writing by the Auditor and the County Project or Contract Manager or his designee, in compliance with the County Purchasing Policy and Administrative Procedures in effect at the time such services are authorized. 4. 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 and Accounting Director, or her designee, for completion of the various tasks of the project (see attached Exhibit C - Basis of Compensation and Schedule, FY-2013-2015.) 5. THE CONTRACT SUM. The County shall pay the Auditor for the performance of this in accordance with Exhibit B Pricing. This amount is based on the prices set forth in the Auditor's proposal, subject to written contract modifications as approved in advance by the County. 5.1 Payments will be made for services furnished, delivered, and accepted, upon receipt and approval of invoices submitted on the date of services or within six (6) months after completion of contract. Any untimely submission of invoices beyond the specified deadline period is subject to non-payment under the legal doctrine of "laches" as untimely submitted. Time shall be deemed of the essence with respect to the timely submission of invoices under this agreement. 5.2 Any County agency may purchase products and services under this contract, provided sufficient funds are included in their budget(s). Payment will be made upon receipt of a proper invoice and upon approval by the Contract Manager or his designee, and in compliance with Chapter 218, Fla. Stats., otherwise known as the "Local Government Prompt Payment Act". 6. SALES TAX. Auditor shall pay all sales, consumer, use and other similar taxes associated with the Work or portions thereof, which are applicable during the performance of the Work. 7. NOTICES. All notices from the County to the Auditor shall be deemed duly served if mailed or faxed to the Auditor at the following .vddress� CliftonLarsonAlien, CLA 6810 International Center Blvd. Fort Myers, Florida 33912 Attention: Martin A. Redovan, Partner Martin.redovan @CLAconnect.com Telephone: 239-226-9900 Amok Facsimile: 239-226-9950 Pale 2 of 17 Packet Page-2993- 9/10/2013 16.J.12. All Notices from the Auditor to the County shall be deemed duly served if mailed or faxed to the County to: Collier County Government Center Purchasing Department 3327 Tamiami Trail, East Naples, Florida 34112 Attention: Purchasing &General Services Director Telephone: 239-252-8407 Facsimile: 239-252-6480 The Auditor and the County may change the above mailing address at any time upon giving the other party written notification. All notices under this Agreement must be in writing. 8. 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. 9. PERMITS: LICENSES: TAXES. In compliance with Section 218.80, F.S., all permits and licenses necessary for the prosecution of the Work shall be obtained by the Auditor. Payment for all such permits and licenses 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. 10. NO IMPROPER USE. The Auditor will not use, nor 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 ire objectionable or improper, the Count shall have the right to suspenc th_ 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. Page 3 of 17 Packet Page-2994- 9/10/2013 16.J.12. 11. TERMINATION. Should the Auditor be found to have failed to perform his services in a manner satisfactory to the County as per this Agreement, the County may terminate said imik agreement for cause; further the County may terminate this Agreement for convenience with a thirty (30) day written notice. The County shall be sole judge of non-performance. In the event that the County terminates this Agreement, Auditor's recovery against the County shall be limited to that portion of the Contract Amount earned through the date of termination. The Auditor shall not be entitled to any other or further recovery against the County, including, but not limited to, any damages or any anticipated profit on portions of the services not performed. 12. NO DISCRIMINATION. The Auditor agrees that there shall be no discrimination as to race, sex, color, creed or national origin. 13. INSURANCE. The Auditor shall provide insurance as follows: A. Commercial General Liability: Coverage shall have minimum limits of$1,000,000 Per Occurrence, $2,000,000 aggregate for Bodily Injury Liability and Property Damage Liability. This shall include Premises and Operations; Independent Auditors; Products and Completed Operations and Contractual Liability. B. Business Auto Liability: Coverage shall have minimum limits of N/A Per Occurrence, Combined Single Limit for Bodily Injury Liability and Property Damage Amok Liability. This shall include: Owned Vehicles, Hired and Non-Owned Vehicles and Employee Non-Ownership. C. 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 minimum limit of $100,000 for each accident. D. Professional Liability: Shall be maintained by the Auditor to ensure its legal liability for claims arising out of the performance of professional services under this Agreement. Auditor waives its right of recovery against County as to any claims under this insurance. Such insurance shall have limits of not less than $1,000,000 each claim and in the aggregate. Specia Requirements: Collier County Government shall be listed as the Certificate Holder and included as an Additional Insured 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. The Auditor shall provide County with certificates of insurance meeting the required insurance provisions. Renewal certificates shall be sent to the County ten (10) days prior to any expiration date. Page 4 of 17 Packet Page -2995- �� 9/10/2013 16.J.12. Coverage afforded under the policies will not be canceled or allowed to expire until the greater of: ten (10) days prior written notice, or in accordance with policy provisions. Auditor shall also notify County, in a like manner, within twenty-four (24) hours after receipt, of any notices of expiration, cancellation, non-renewal or material change in coverage or limits received by Auditor from its insurer, and nothing contained herein shall relieve Auditor of this requirement to provide notice. Auditor shall ensure that all sub-consultants comply with the same insurance requirements that he is required to meet. 14. 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 liabilities, damages, losses and costs, including, but not limited to, reasonable attorneys' fees and paralegals' fees, whether resulting from any claimed breach of this Agreement by Auditor, any statutory or regulatory violations, or from personal injury, property damage, direct or consequential damages, or economic loss, 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 arising from the sole negligence of Collier County. 14.1 The duty to defend under this Article 14 is independent and separate from the duty to indemnify, and the duty to defend exists regardless of any ultimate liability of the Auditor, County and any indemnified party. The duty to defend arises immediately upon presentation of a claim by any party and written notice of such claim being provided to Auditor. Auditor's obligation to indemnify and defend under this Article 13 will survive the expiration or earlier termination of this Agreement until it is determined by final judgment that an action against the County or an indemnified party for the matter indemnified hereunder is fully and finally barred by the applicable statute of limitations. 15. CONTRACT ADMINISTRATION. This Agreement shall be administered on behalf of the County by the Clerk's Finance and Accounting Department. 16. CONFLICT OF INTEREST: Auditor represents that it presently has no interest and shall acquire no interest, either direct or indirect, which would conflict in any manner with the performance of services required hereunder. Auditor further represents that no persons having any such interest shall be employed to perform those services. Pale 5 of 17 Packet Page -2996- ?fie 9/10/2013 16.J.12. 17. COMPONENT PARTS OF THIS CONTRACT. This Contract consists of the following component parts, all of which are as fully a part of the contract as if herein set out verbatim: Auditor's Proposal, Insurance Certificate, RFP #13-6132 Specifications/Scope Services and Addenda, Exhibit A Scope of Services, Exhibit B Pricing, and Exhibit C Basis of Compensation and Schedule. 18. 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. 19. 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 112, Part III, Florida Statutes, Collier County Ethics Ordinance No. 2003-53, as amended, 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 contact with County staff for a specified period of time; b. Prohibition by the individual and/or firm 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. 20. COMPLIANCE WITH LAWS. Auditor agrees to comply, at its own expense, with all federal, state and local laws, codes, statutes, ordinances, rules, regulations and requirements applicable to the Project, including but not limited to those dealing with the Immigration Reform and Control Act of 1986 as located at 8 U.S.C. 1324, et seq. and regulations relating thereto, as either may be amended; taxation, workers' compensation, equal employment and safety (including, but not limited to, the Trench Safety Act, Chapter 553, Florida Statutes); and the Florida Public Records Law Chapter 119 (including specifically those contractual requirements at F.S. § 119.0701(2)(a)-(d) and (3))). If Auditor observes that the Contract Documents are at variance therewith, it shall promptly notify County in writing. 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. 21. 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. 22. AGREEMENT TERMS. If any portion of this Agreement is held to be void, invalid, or otherwise unenforceable, in whole or in part, the remaining portion of this Agreement shall remain in effect. Page 6 of 17 (�i Packet Page-2997- ` � 9/10/2013 16.J.12. 23. ADDITIONAL ITEMS/SERVICES. Additional items and/or services may be added to this contract in compliance with Sections 3 and 5 of this contract and in accordance with the Purchasing Policy. 24. DISPUTE RESOLUTION. Prior to the initiation of any action or proceeding permitted by this Agreement to resolve disputes between the parties, the parties shall make a good faith effort to resolve any such disputes by negotiation. The negotiation shall be attended by representatives of Auditor with full decision-making authority and by County's staff person who would make the presentation of any settlement reached during negotiations to County for approval. Failing resolution, and prior to the commencement of depositions in any litigation between the parties arising out of this Agreement, the parties shall attempt to resolve the dispute through Mediation before an agreed-upon Circuit Court Mediator certified by the State of Florida. The mediation shall be attended by representatives of Auditor with full decision-making authority and by County's staff person who would make the presentation of any settlement reached at mediation to County's board for approval. Should either party fail to submit to mediation as required hereunder, the other party may obtain a court order requiring mediation under section 44.102, Fla. Stat. 25. VENUE. Any suit or action brought by either party to this Agreement against the other party relating to or arising out of this Agreement must be brought in the appropriate federal or state courts in Collier County, Florida, which courts have sole and exclusive jurisdiction on all such matters. 26. KEY PERSONNEL/PROTECT STAFFING: The Auditor's personnel and management to be utilized for this contract shall be knowledgeable in their areas of expertise. The County reserves the right to perform investigations as may be deemed necessary to ensure that competent persons will be utilized in the performance of the contract. The Auditor shall assign as many people as necessary to complete the required services 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 Schedule. The Auditor shall not change Key Personnel unless the following conditions are met: (1) Proposed replacements have substantially the same or better qualifications and/or experience. (2) that the County is notified in writing as far in advance as possible. The Auditor 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. 2- ORDER OF PRECEDENCE: In the event of any conflict betweer or anion; the term= a am of the Contract Documents, the terms of the Request for Proposal (RFP) and/or tn.:, Auditor's Proposal, the Contract Documents shall take precedence. 28. ASSIGNMENT: Auditor shall not assign this Agreement or any part thereof, without the prior consent in writing of the County. Any attempt to assign or otherwise transfer this Agreement, or any part herein, without the County's consent, shall be void. If Auditor does, with approval, assign this Agreement or any part thereof, it shall require that its Pale 7 of 17 Packet Page -2998- `f 9/10/2013 16.J.12. assignee be bound to it and to assume toward Auditor all of the obligations and responsibilities that Auditor has assumed toward the County Ank************************Remainder of page intentionally left blank******************************** Agnik Page 8 of 17 ' Packet Page -2999- 9/10/2013 16.J.12. 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 first above written. BOARD OF COUNTY COMMISSIONERS ATTEST: COLLIER COUNTY, FLORIDA Dwight E. Brock, Clerk of Courts By: By: Georgia A. Hiller, Esq., Chairwoman Dated: (SEAL) CliftonLarsonAIlen,CLA Auditor By: First Witness Signature TType/print witness nameT TType/print signature and title 1' Second Witness TType/print witness nameT Approved as to Form and Legality_: County Attorney Print Nam; Page 9of17 > Packet Page-3000- 9/10/2013 16.J.12. Exhibit A Scope of Services Ask 13-6132 Annual Auditing Services This contract is for use by all County Departments, with a Scope of Services including; but not limited to, the following: an annual financial audit, single audits and specific financial assistance and reporting as described in the Scope of Work below. The Auditor shall provide audit services, to include the provision of resources related to the implementation of pronouncements, changes in accounting procedures, laws, regulations and general reporting guidance. Responsibilities of the Auditor: a. The audit shall be performed in accordance with generally accepted auditing standards as set forth by the American Institute of Certified Public Accountants, and the standards for financial audits set forth in the U.S. Government Accountability Office's Government Auditing Standards, and per the provisions of section 11.45. F.S. b. All working papers and reports must be retained, at the auditor's expense, for a minimum of five (5) years, unless the firm is notified in writing by Collier County of the need to extend the retention period. The auditor will be required to make working papers available, upon request, without charge, to any federal, state or Collier County agency upon request. c. In addition, the firm shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. d. The Auditor has provided an affirmative statement that it is independent of Collier County. including the Board and each County Officer, as defined by the U.S. Government • Accountability Office's Government Auditing Standards. In addition, the auditor shall give Collier County written notice of any professional relationships entered into during the period of this agreement. Additional requirements: a. Audit the separate financial statements of the Board of County Commissioners and each Constitutional Officer and express an opinion on the fair presentation of the financial statements of each Constitutional Officer and the County as a whole based on GASB standards. In addition, the Auditor will provide separate Representation Letters for the Board of County Commissioners' financial statement audit. One will be addressed to Collier County Administration and the other to the Clerk of the Circuit Court. The dual Representation Letters will allow the two agencies to make their respective assertions regarding the underlying financial statements. b. Express an opinion on the fair presentation of its basic financial statements in accordance with generally accepted accounting principles. Per the requirements of GASB Statement Nc. 14. Nc. 3t and GASB Statement Nc. 61. tine basic financia statements of Collier C:ounr. include the Board of County Commissioners and the Constitutional Officers along wits: blended and discretely presented component units. c. Provide an "in-relation-to" report on the combining information based on the auditing procedures applied during the audit on the basic financial statements. The auditor is not required to audit the statistical section of the report or express an opinion on the fair presentation of its combining information. d. Audit the individual financial statements of the Collier County Water and Sewer District for Amok the purpose of expressing an opinion on the fair presentation of the financial statements. Pale 10 of 17 tC Packet Page-3001- 9/10/2013 16.J.12. e. Audit the Statement of County Funded Court Related Functions required by Florida Statutes, Section 29.0085. f. Perform agreed-upon procedures for the Sheriffs Investigative Trust Fund Report. g. Review the Annual Financial Report with the Department of Financial Services in accordance with section 218.32, F.S. h. Attend public meetings, as necessary, to discuss the audit report. The partner-in-charge and audit manager may be required to attend these meetings. i. Be established as a legal entity status in the State of Florida and have performed continuous CPA services for a minimum of five (5)years. j. Affirm and place Florida licensed professional staff on the Collier County audit team. k. Capable of conducting research using inquiry access to the County's SAP Financial platform for the purposes of auditing the Board of County Commissioners, Clerk the Circuit Court and Supervisor of Elections. The Property Appraiser, Tax Collector and Sheriff maintain individual systems. 1. Membership in the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. m. Meets the standards for financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (the Yellow Book) and Laws and Rules of Florida Board of Accountancy, Chapters 455 and 473, Florida Statutes (F.S.), and Florida Administrative Code. n. Affirms compliance with the Code of Ethics of the Collier County Board of County Commissioners or the State of Florida. A copy of the County and State Ethics Codes is available at the Human Resources Department, Collier County Government, 3303 Tamiami Trail East,Naples, Florida 34112-4961. o. Provide agenda for annual Interim and Audit Kick Off Meeting; meeting must occur by May 15th each year, subsequent to first year engagement. p. Begin interim audit work after the execution of the contract; generally this work should occur from June 1 — September 30, first year of engagement negotiable but no later than 9/30/13 if an interim is to be performed. q. Adhere to the annual audit timeline described below, for FY-2014 and 2015 audits, unless otherwise directed in writing by the County Contract Manager: Timeline Action June 1 — Sept. 30 1 Interim field work, subsequent to first year September 30 Fiscal year end Sept. 30—Oct. 30 ( Books are closed for Constitutional Officers November The general ledgers are provided to the independent auditor: begin field work on Constitutional Officers Oct. 30—Nov. 22 Financial statements for Constitutional Officers preparec. Early December Constitutional Exit interviews Sept. 30—Dec. 31 Books are closed for Board of County Commissioners and the general ledger is provided I to the independent auditor; field work begins on the Board. First draft of County financial statements is provided to the independent auditor January Board field work complete January Comments provided by independent auditor Page 11 of 17 :�:� Packet Page -3002- 9/10/2013 16.J.12. regarding draft of financial statements January Final review of financial statements, conduct exit conference February I Commence CAFR printing Last Board Meeting in February Presentation of CAFR to the Board of County Commissioners in conjunction with the Clerk of the Circuit Court Notes: The Clerk of Courts in his role as Chief Financial Officer oversees preparation of draft financial statements, notes and all required supplementary schedules and statistical data. The draft financial statements will be available to audit no later than January 21 of any given year. The auditor shall provide all recommendations, revisions and suggestions for improvement to the Clerk's Finance Department and Accounting no later than January 31. The Finance Department will complete their review of the draft report as expeditiously as possible. It is not expected that this process should exceed one (1) week. During that period, the auditor should be available for any meetings that may be necessary to discuss the audit reports. Once all issues for discussion are resolved, the final signed report shall be delivered to the Clerk of the Circuit Court within seven (7) working days. It is anticipated that this process will be completed and the final report delivered by early February. r. Submit the final report to: The Honorable Dwight E. Brock Amok Clerk of the Circuit Court Finance and Accounting Department 3299 Tamiami Trail East, Suite 403 Naples, Florida 34112-5746 s. Provide the following reports to the County: 1) Presentation of the financial statements in conformity with generally accepted accounting principles. In addition to the report for the County as a whole, a separate report is required for each of the five (5) elected Constitutional Officers. Fifteen (15) copies will need to be provided to each Constitutional office, the Finance and Accounting Office will incorporate the auditor issued opinions and reports and assemble the consolidated CAFR. 2) Internal control structure based on the auditor's understanding of the control structure and assessment of control risk. A separate report is required for each of the five elected Constitutional Officers. 3) Compliance with applicable laws and regulations. A separate report is required for each of the five (5) elected Constitutional Officers. 4 Internal control structure used in administering iederai. stau2. anc iocal financial assistan: programs. 5) Compliance with laws and regulations related to major and non-major federal, state, and local financial assistant programs. These reports should include an opinion on compliance with specific requirements applicable to major federal financial assistance programs, and a report on compliance with laws and regulations applicable to non-major federal and state financial assistance program transactions tested. 6) Fair presentation of Supplementary Information Schedules of Federal, State, and Local Aosook financial assistance in relation to the County's financial statements taken as a whole. Page 12 of 17 r' Packet Page -3003- 9/10/2013 16.J.12. 7) A separate report on the Collier County Water and Sewer District as to the fair presentation of the financial statements in accordance with generally accepted accounting principles. Ten (10) copies will be provided to the Finance and Accounting Department. 8) A separate report on the Sheriffs Investigative Fund Trust Report. Five (5) copies will be provided to the Sheriffs Office. 9) Any other attestations as may be required by Florida Statutes or Florida Administrative Code. This includes, but is not limited to, the Statement of County Funded Court Related Functions. 10)Management letters for the Board of County Commissioners and all Constitutional Officers with required elements as required by the Rules of the Auditor General. 11)An immediate, written report of all irregularities and illegal acts of which they become aware. Such report shall be made to the elected official responsible for the operations of the unit of the County being audited. 12)Present CAFR to the Collier County Board of County Commissioners, including condensed financial data and audit results. Presentation must be provided for edit at least two (2) weeks prior to the public meeting. The County will: a. Send its comprehensive annual financial report to the Government Finance Officers' Association of the United States and Canada for review in its Certificate of Achievement for Excellence in Financial Reporting program. It is expected that the auditor will provide any special assistance necessary to ensure Collier County continues to meet the requirements of that program. Collier County has received this award for the last twenty-six fiscal cycles. b. Potentially prepare one or more official statements in connection with the sale of debt securities, which would contain the basic financial statements and the auditor's report thereon. The auditor shall be required, if requested by the fiscal advisor and/or the underwriter, to issue a "consent and citation of expertise" as the auditor and any necessary "comfort letters." c. Prepare the Schedule of Expenditures of Federal Awards and State Projects and related notes as part of the Comprehensive Annual Financial Report (CAFR). d. Schedule the Finance and Accounting Department staff and responsible management personnel to be available during the audit to assist the firm by providing information, documentation and explanations. The Clerk's Finance and Accounting Department will prepare the financial statements for the Clerk of the Circuit Court, Supervisor of Elections and the consolidated CAFR: other offices provide their owr.. Any additional information provided will be in the format maintained by the Clerk's Finance and Accounting Department. The preparation of confirmations will be the responsibility of the Clerk's Finance and Accounting Department for the Board of County Commissioners, Clerk of the Circuit Court, and Supervisor of Elections: other offices will prepare their own. e. Provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided with access to one (11 telephone line. photocopying facilities. facsimile machine and wireless connectivity, Preparation of Inc CAFE. repor.. including editing ana printing shall be the responsibilit of the Clerk's Finance and Accounting Department. Pace 13 of 17 Packet Page -3004- ?-; 9/10/2013 16.J.12. Exhibit B Pricing Amok 13-6132 Annual Auditing Services I. Complete price for Collier County audit scope of work for S 330,000.00 all constitutional officers and the Board of County Commissioners, inclusive of administrative fees,travel and incidental costs,for year one(I). 2. Complete price for up to fifteen(15)major grant program Included above audits, inclusive of administrative fees,travel and incidental costs. for year one(I). 3. Complete price for Collier County audit scope of work for S 330,000.00 all constitutional officers and the Board of County Commissioners, inclusive of administrative fees, travel and incidental costs, for year two(2). 4. Complete price for up to fifteen (15)major grant program Included above audits, inclusive of administrative fees,travel and incidental costs. for year two(2). 5. Complete price for Collier County audit scope of work for $330,000.00 all constitutional officers and the Board of County Commissioners, inclusive of administrative fees, travel and incidental costs, for year three (3). 6. Complete price for up to fifteen(15)major grant program Included above audits, inclusive of administrative fees,travel and incidental costs, for year three(3). 7. Additional single price for major program audit in the $4,500 per program per year event that the County surpasses fifteen(15)audits *ow. inclusive of administrative fees,travel and incidental costs. Hourly rates for additional services, inclusive of administrative fees,travel and incidental costs: Personnel Category Hourly Rate Partner S 265 Senior Manager S 225 Manager 5 200 Senior $ 150 Staff $ 115 Page 14 of 17 Packet Page -3005- 9/10/2013 16.J.12. Exhibit C Basis of Compensation and Schedule 13-6132 Annual Auditing Services Year 1 - FY-2013 Audit Task 1 — Meet with executives and financial management to $10,000 Upon September- co-develop expectations. Conduct planning meetings, completion October develop detailed audit plan. Attend Audit Committee of all items Meeting, begin interim fieldwork (understanding and associated testing of internal controls and systems). Begin , with Task 1. Single Audit planning and testing I I Task 2-November Significant completion of control testing, risk $50,000 Upon assessments and audit planning. Constitutional completion Officer General Ledgers provided to the auditors. of all items Begin performance of substantive testing of account associated balances. with Task 2. Task 3- Significant completion of fieldwork of Constitutional $70,000 Upon November- Officers. Review of Constitutional Financial completion December Statements and conduct exit interviews on of all items Constitutional Statements December 1-15. Begin associated performance of substantive testing of account with Task 3. balances—Board of County Commissioners General ledger provided December 15. Continue General Ledgers provided to the auditors. Begin performance of substantive testing of account balances. Continue Single Audit testing. Task 4-January- Board financial statement audit and Single Audit $100,000 Upon February significantly complete. The Clerk of Courts finance completion and Accounting Department oversees preparation of of all items draft financial statements, notes and statistical data. associated First draft of financial statements to auditors by with Task 4. January 21. First round of comments on initial review due by January 28. Second draft to auditors one week after receipt of initial review comments. Task 5-February- Issue opinion on Comprehensive Annual Financial $100,000 Upon March Report (CAFR),including all Constitutional Officer I completion reports. Issue all other required reports,including I of all items Single Audit and Data Collection Form by February associated 28. Present CAPR. and resuRts.to the Board n7. ' with Task 5. 1 Marco 11. Page 15 of 17 Packet Page -3006- 9/10/2013 16.J.12. Year 2 — FY-2014 Audit Assiotk Task I —June Meet with executives and financial management to $10,000 Upon -July co-develop expectations. Conduct planning meetings, completion develop detailed audit plan. Attend Audit Committee of all items Meeting, begin interim fieldwork (understanding and associated testing of internal controls and systems). Begin with Task 1. Single Audit planning and testing Task 2-November Significant completion of control testing, risk $50,000 Upon assessments and audit planning. Constitutional completion Officer General Ledgers provided to the auditors. of all items Begin performance of substantive testing of account associated balances. with Task 2. Task 3- Significant completion of fieldwork of Constitutional $70,000 Upon November- Officers. Review of Constitutional Financial completion December Statements and conduct exit interviews on of all items Constitutional Statements December 1-15. Begin associated performance of substantive testing of account with Task 3. balances—Board of County Commissioners General ledger provided December 15. Continue General Ledgers provided to the auditors. Begin performance of substantive testing of account balances. Continue Single Audit testing. Task 4-January Board financial statement audit and Single Audit $100,000 Upon significantly complete. The Clerk of Courts finance completion and Accounting Department oversees preparation of of all items draft financial statements, notes and statistical data. associated First draft of financial statements to auditors by with Task 4. January 21. First round of comments on initial review due by January 28. Second draft to auditors one week after receipt of initial review comments. Task 5-February- Issue opinion on Comprehensive Annual Financial 5100,000 Upon March Report(CAFR),including all Constitutional Officer completion reports. Issue all other required reports,including of all items Single Audit and Data Collection Form by February, associated 21. Present CAFR,and results,to the Board by with Task 5. February 28. Page 16 of 17 Packet Page -3007- 9/10/2013 16.J.12. Year 3— FY-2015 Audit Task 1 — Meet with executives and financial management to $10,000 Upon June-July co-develop expectations. Conduct planning meetings, completion develop detailed audit plan. Attend Audit Committee of all items Meeting, begin interim fieldwork (understanding and associated testing of internal controls and systems). Begin with Task 1. Single Audit planning and testing Task 2-November Significant completion of control testing, risk $50,000 Upon assessments and audit planning. Constitutional completion Officer General Ledgers provided to the auditors. of all items Begin performance of substantive testing of account associated balances. with Task 2. Task 3- Significant completion of fieldwork of Constitutional $70,000 Upon November- Officers. Review of Constitutional Financial completion December Statements and conduct exit interviews on of all items Constitutional Statements December 1-15. Begin associated performance of substantive testing of account with Task 3. balances—Board of County Commissioners General ledger provided December 15. Continue General Ledgers provided to the auditors. Begin performance of substantive testing of account balances. Continue Single Audit testing. Task 4-January Board financial statement audit and Single Audit S100,000 Upon significantly complete. The Clerk of Courts finance completion and Accounting Department oversees preparation of of all items draft financial statements, notes and statistical data. associated First draft of financial statements to auditors by with Task 4. January 21. First round of comments on initial review due by January 28. Second draft to auditors one week after receipt of initial review comments. Task 5-February- Issue opinion on Comprehensive Annual Financial $100,000 Upon March Report(CAFR), including all Constitutional Officer completion reports. Issue all other required reports,including of all items Single Audit and Data Collection Form by February associated 21. Present CAFR,and results,to the Board by with Task 5. February 28. Page 17 of 17 Packet Page -3008-