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Agenda 06/26/2018 Item #16J206/26/2018 EXECUTIVE SUMMARY Recommendation to approve the rank order for Request for Proposal (RFP) #18-7387, “Annual Auditor Services,” and to enter into negotiations with Clifton Larson Allen LLP. OBJECTIVE: To secure an independent auditor to conduct annual financial audits for the fiscal years 2018, 2019 and 2020 as required by Florida Statute 218.39. CONSIDERATIONS: On May 10, 2018 a Request for Proposal (RFP) solicitation # 18-7387 Annual Audit Services was advertised publicly. Subsequently, 4,407 notifications were sent, 54 vendors viewed the bid package and four (4) proposals were submitted by the due date of June 11, 2018. All four proposals were found to be responsive and responsible. On June 15, 2018 the selection committee, composed of a designee from each Constitutional Office, as directed by Florida Statute 218.391, met to discuss and rank the four proposals according to the criteria in the solicitation. The selection committee’s ranking is as follows: Firm Ranking Three (3) Year Cost of Service Clifton Larson Allen, LLP 1 $1,071,000 RSM US, LLP 2 $1,086,900 Cherry Bekaert, LLP 3 $1,071,400 Marcum, LLP 4 $1,082,000 Staff is requesting approval of the rank order and approval to begin contract negotiations with Clifton Larson Allen LLP. If these contract negotiations are not successful, staff is requesting authorization to commence contract negotiations with the next ranked firm. The contract will be submitted to the Board for approval at a subsequent meeting. FISCAL IMPACT: Clifton Larson Allen LLP’s proposed fee for the FY-2018 audit is $350,000, which constitutes a zero cost increase over the fee for the FY -2017 audit. The proposed three year total cost of service is $1,071,000, with fiscal years’ FY-2019 and FY-2020 proposed at $357,000 and $364,000, respectively. 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 GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this Executive Summary. RECOMMENDATION: To approve the rank order for Request for Proposal (RFP) #18-7387, “Annual Auditor Services,” and to enter into negotiations with Clifton Larson Allen LLP. Prepared By: Derek M. Johnssen, Assistant Finance Director, Office of the Clerk of the Circuit Court ATTACHMENT(S) 1. 18-7387 Final Ranking (PDF) 2. 18-7387 NORA (PDF) 3. 18-7387 Solicitation (PDF) 4. [LINKED] CLAs_Response_to_RFP_18-7387_-_Collier_County (PDF) 06/26/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.J.2 Doc ID: 6031 Item Summary: Recommendation to approve the rank order for Request for Proposal (RFP) #18- 7387, “Annual Auditor Services,” and to enter into negotiations with Clifton Larson Allen LLP. Meeting Date: 06/26/2018 Prepared by: Title: Senior Staff Assistant – Clerk of the Circuit Court Name: Jennifer Milum 06/20/2018 9:06 AM Submitted by: Title: Senior Staff Assistant – Clerk of the Circuit Court Name: Jennifer Milum 06/20/2018 9:06 AM Approved By: Review: Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/20/2018 9:13 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/20/2018 9:26 AM Budget and Management Office Mark Isackson Additional Reviewer Completed 06/20/2018 9:28 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/20/2018 9:30 AM Board of County Commissioners MaryJo Brock Meeting Pending 06/26/2018 9:00 AM Selection Committee Final Ranking Sheet RPS #: 18-7387 Title: Annual Audit Services Name of Firm Melissa Blazier Stephanie Driscoll Crystal Kinzel Sherry Kimble Susan Usher Vickie Downs Total Selection Committee Final Rank Clifton Larson Allen LLP 1 1 1 1 1 1 6 1.0000 RSM US LLP 2 2 2 2 2 2 12 2.0000 Cherry Bekaert LLP 3 3 3 3 4 3 19 3.0000 Marcum LLP 4 4 4 4 3 4 23 4.0000 Procurement Professional Evelyn Colon, Procurement Strategist Step 1: Upon direction by the Procurement professional, the individual selection committee member should provide their ranking of the proposals (from highest being number one (1) to lowest. Step 2: The procurement professional will review the mathematically calculated final rank and discuss the rank order and determine if consensus is reached. 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Coyman Jr. 7 Date COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS REQUEST FOR PROPOSAL (RFP) FOR ANNUAL AUDIT SERVICES SOLICITATION NO.: 18-7387 EVELYN COLON, PROCUREMENT STRATEGIST PROCUREMENT SERVICES DIVISION 3295 TAMIAMI TRAIL EAST, BLDG C-2 NAPLES, FLORIDA 34112 TELEPHONE: (239) 252-2667 evelyn.colon@colliercountyfl.gov (Email) This solicitation document is prepared in a Microsoft Word format (Rev 8/7/2017). Any alterations to this document made by the Vendor may be grounds for rejection of proposal, cancellation of any subsequent award, or any other legal remedies available to the Collier County Government. SOLICITATION PUBLIC NOTICE REQUEST FOR PROPOSAL (RFP) NUMBER: 18-7387 PROJECT TITLE: ANNUAL AUDIT SERVICES LOCATION: PROCUREMENT SERVICES DIVISION, CONFERENCE ROOM A, 3295 TAMIAMI TRAIL EAST, BLDG C-2, NAPLES, FLORIDA 34112 PROPOSAL OPENING DATE: June 11, 2018 PLACE OF RFP OPENING: PROCUREMENT SERVICES DIVISION 3295 TAMIAMI TRAIL EAST, BLDG C-2 NAPLES, FL 34112 All proposals shall be submitted online via the Collier County Procurement Services Division Online Bidding System: https://www.bidsync.com/bidsync-cas/ INTRODUCTION As requested by the Clerk to Board's Finance Division (hereinafter, the “Division”), the Collier County Board of County Commissioners Procurement Services Division (hereinafter, “County”) has issued this Request for Proposal (hereinafter, “RFP”) with the intent of obtaining proposals from interested and qualified vendors in accordance with the terms, conditions and specifications stated or attached. The vendor, at a minimum, must achieve the requirements of the Specifications or Scope of Work stated. The results of this solicitation may be used by other County departments once awarded according to the Board of County Commissioners Procurement Ordinance. The purpose of this solicitation is to obtain the services of an Independent Certified Public Accounting firm duly licensed to practice under Chapter 473, Florida Statutes in the State of Florida, to perform financial and compliance audits in accordance with Chapter 11.45, Florida Statutes, Chapter 10.550, Rules of the Auditor General, and Title 2 of the Code of Federal Regulations, Part 200 (Grants and Agreements), and render their opinions on the financial statements and accounts of Collier County, Florida (County) in accordance with generally accepted auditing standards promulgated by the American Institute of Certified Public Accountants (AICPA), the AICPA Industry Audit Guide, Audits of State and Local Governments and Governmental Auditing Standards, issued by the Comptroller General of the United States. The partner in charge of the engagement must be a licensed Certified Public Accountant in the State of Florida. Over the last five (5) years, Collier County, Florida has spent approximately $339,000 per year for annual audit services. BACKGROUND Collier County serves an area of 2,025.5 square miles and is a non-chartered county established under the constitution and the laws of the State of Florida. Collier County has experienced tremendous growth in population over the past few decades. The permanent population has increased from approximately 38,000 residents in 1970 to 360,846 in 2017 according to the University of Florida’s Bureau of Economic and Business Research. From 2008 to 2017, the population growth rate was 8.4%. The County is expected to sustain an annual growth rate of approximately 1.8% over the next decade. The County’s FY 2018 budget is $1.14B. The fiscal year begins on October 1 and ends on September 30. The services being requested begin as of the FY 2018 audit. The Clerk of the Circuit Court maintains the funds and accounts of the Board of County Commissioners and the Supervisor of Elections. In addition to the Board of County Commissioners, this RFP covers the following constitutional offices: • Clerk of the Circuit Court • Property Appraiser • Sheriff • Supervisor of Elections • Tax Collector Each is responsible for the custody and accounting of funds of each of their respective offices. Detailed information on the government and its finances can be found in Collier County’s Comprehensive Annual Financial Report for fiscal year 2017 and in the County’s Annual Adopted Budget for fiscal year 2018. Copies of these documents may be viewed on www.collierclerk.com and www.colliergov.net, respectively. Reporting Entity The Collier County Government is defined, for financial reporting purposes, in conformity with the Governmental Accounting Standards Board's (GASB) Codification of Governmental Accounting and Financial Reporting Standards, Section 2100, Defining the Financial Reporting Entity. Using these criteria, management has included the Board, Constitutional Officers and all appropriate blended component units as the primary government. Fund Structure Collier County uses the following fund types in its fund financial reporting (as of September 30, 2017): • General fund • Special revenue funds • Debt service funds • Capital projects funds • Permanent fund • Enterprise funds • Internal service funds • Agency funds Budgetary Basis Collier County Government prepares its budgets on a basis consistent with generally accepted accounting principles except as explained in Note 1, Summary of Significant Accounting Policies, of the 2017 Comprehensive Annual Financial Report. Federal and State Financial Assistance Detailed information can be obtained from the Federal and State Schedule of Financial Assistance in the County’s Comprehensive Annual Financial Report (CAFR) for fiscal year 2017. Collier had four (4) Major Federal Programs or Clusters and five (5) Major State Projects with $27,510,039 in total expenditures and $2,248,306 in total transfers to subrecipient entities. A copy of the fiscal year 2017 CAFR can be viewed on www.collierclerk.com. Pension Plans Collier County, and all its Constitutional Officers, participate in the Florida Retirement System (FRS), a multiple employer cost sharing defined benefit plan, administered by the State of Florida. Other Post-Employment Benefits (OPEB) Plan Collier County provides post-employment healthcare benefits for retirees through a single employer defined benefit plan. The participants of this plan include retirees of the Board of County Commissioners, the Clerk of the Circuit Court and Comptroller, the Property Appraiser, the Tax Collector and the Supervisor of Elections. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County’s health insurance plan at the same group rate as for active employees. In addition, the Board of County Commissioners and Tax Collector offer a subsidy based upon years of service, age and accrued sick leave. Currently the additional plan has six participants that receive a subsidy. These plans do not issue separate financial reports and no related trust has been established to fund OPEB. The Sheriff provides post-employment healthcare benefits for retirees through a single employer defined benefit plan. In accordance with Florida Statute 112.0801, employees who retire and immediately begin receiving benefits from the FRS have the option of paying premiums to continue in the County’s health insurance plan at the same group rate as for active employees. Prior to 2010, the Sheriff offered an OPEB Plan that subsidized the cost of health care for its retirees who had 6 years of creditable service with the Sheriff and who received a monthly retirement benefit from the Florida Retirement System. The Sheriff subsidizes approximately 20% for both single and family coverage for qualifying individuals. In 2010, the subsidy was no longer made available to eligible retirees who chose to continue their health insurance coverage. Approximately 46% of retirees receive the subsidy. These plans do not issue separate financial reports and no related trust has been established to fund OPEB. TERM OF CONTRACT The contract term, if an award is made, is intended to be for three (3) years with two (2) one (1) year renewal options. Prices shall remain firm for the initial term of this contract. Surcharges will not be accepted in conjunction with this contract, and such charges should be incorporated into the pricing structure. DETAILED SCOPE OF WORK The vendor shall provide: a. An audit 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 Florida Statutes, Section 11.45. b. The firm should provide 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 firm shall give Collier County written notice of any professional relationships entered into during the period of this agreement. c. 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. d. A response to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. Additionally, the successful supplier must meet the following requirements of this RFP: 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. 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 No. 14, as amended by GASB Statements No. 39, 61 and 80, the basic financial statements of Collier County include the Board of County Commissioners and the Constitutional Officers along with 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. When applicable, the scope of the financial audit shall encompass the additional activities necessary to establish compliance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); other applicable federal law; and the Florida Single Audit Act. e. Audit the individual financial statements of the Collier County Water and Sewer District for the purpose of expressing an opinion on the fair presentation of the financial statements. f. Audit the Statement of County Funded Court Related Functions required by Florida Statutes, Section 29.0085. g. Perform agreed-upon procedures for the Sheriff’s Investigative Trust Fund Report. h. Review the Annual Financial Report with the Department of Financial Services in accordance with Florida Statutes, Section 218.32 and determine whether the entity met one or more of the conditions described in Florida Statutes, Section 218.503. i. A determination of whether or not deteriorating financial conditions exist pursuant to Florida Statutes, Section 218.39. j. Review the entities compliance with the requirements of Florida Statutes, Section 218.415. k. Determine whether or not all E911 fee revenues, interest and E911 grant funding, if any, was used for payment of authorized expenditures, as specified in Florida Statutes, Section 365.172 and as specified in the E911 Board grant and special disbursement programs described in Florida Statutes, Section 365.173. l. For clerks of the court a determination of the clerk’s compliance with the requirements of Florida Statutes, Sections 28.35, 28.36 and 61.181. m. For Deepwater Horizon oil spill funds not audited as major grant programs or projects, determine whether or not the County has complied with Federal and State laws, rules, regulations, contracts or grant agreements related to the receipt and expenditure of the funds (see Florida Statutes, Section 288.8018). n. Attend public meetings, as needed, to discuss the audit report. The partner-in-charge and audit manager, or equivalent, may be required to attend these meetings. o. 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. p. Be 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 of the Circuit Court and Supervisor of Elections. The Property Appraiser, Tax Collector and Sheriff maintain individual systems. q. Be members in the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. r. Meets the standards for financial audits contained in Government Auditing Standards issued by the Government Accountability Office 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. s. 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. t. Provide agenda for annual Interim and Audit Kick-Off Meeting; meeting must occur by May 15th of each year for the subsequent years’ audit. u. Begin interim audit work after the execution of the contract; generally this work should occur from June 1 – September 30. v. Adhere to the audit timeline described below: Timeline Action June 1 – Sept. 30 Interim field work, subsequent to first year September 30 Fiscal year end Sept. 30 – Oct. 30 November Books are closed for Constitutional Officers The general ledgers are provided to the independent auditor; begin field work on Constitutional Officers Oct. 30 – December 15 Financial statements for Constitutional Officers prepared. Constitutional Officer exit conferences Sept. 30 – Dec. 15 Books are closed for Board of County Commissioners and the general ledger is provided 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 regarding draft of financial statements February Final review of financial statements, conduct exit conferences March Commence CAFR printing – Clerk’s Finance and Accounting Department By last Board meeting in March (4th Tuesday) 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, unadjusted for FRS pension purposes, will be available to audit by December 15 of any given year. The auditor shall provide all recommendations, revisions and suggestions for improvement to the Clerk’s Finance Department by January 31. The Finance and Accounting Department will complete their review of the auditor reviewed draft report as expeditiously as possible. It is not expected that this process should exceed one 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. The Finance and Accounting Department’s goal is to issue the CAFR prior to March 31 of the subsequent year. The County understands that this goal is subject to the provision of pension data from the State of Florida. w. Submit the final report to: The Honorable Dwight E. Brock Clerk of the Circuit Court and County Comptroller Finance and Accounting Department 3299 Tamiami Trail East, Suite 403 Naples, Florida 34112-5746 x. 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 elected Constitutional Officers. A defined number of copies will need to be provided to each office. 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 elected Constitutional Officers. 4) Internal control structure used in administering federal, state, and local financial assistant 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 Other Supplemental Information Schedules of Federal, State and Local financial assistance in relation to the County’s financial statements as a whole. 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. 8) A separate report on the Sheriff’s Investigative Fund Trust Report. 9) Any other attestations as may be required by Florida Statutes or Florida Administrative Code. 10) Management letters for the Board of County Commissioners and all Constitutional Officers, with required elements, as defined 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 and to the Audit Committee. 12) Inform Collier County’s Audit Committee of each of the following: i. The auditor's responsibility under generally accepted auditing standards ii. Significant accounting policies iii. Management judgments and accounting estimates iv. Significant audit adjustments v. Other information in documents containing audited financial statements vi. Disagreements with management vii. Management consultation with other accountants viii. Major issues discussed with management prior to retention ix. Difficulties encountered in performing the audit 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 thirty-one 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 financial 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 constitutional offices provide their own. 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 constitutional offices will prepare their own. e. Assist the auditor in performing audit tests as defined in contract negotiations. f. Provide the auditor with reasonable work space, desks and chairs. The auditor will also be provided with access to at least one telephone line, photocopying facilities, facsimile machine and wireless connectivity. g. Preparation of the CAFR report, including editing and printing shall be the responsibility of the Clerk’s Finance and Accounting Department. REQUEST FOR PROPOSAL (RFP) PROCESS 1.1 The Proposers will submit a qualifications proposal which will be scored based on the criteria in Section 5.0 Grading Criteria for Development of Shortlist, which will be the basis for short-listing firms. The Proposers will need to meet the minimum requirements outlined herein in order for their proposal to be evaluated and scored by the COUNTY. The COUNTY will then grade and rank the firms and enter into negotiations with the top ranked firm to establish cost for the services needed. The COUNTY reserves the right to issue an invitation for oral presentations to obtain additional information after grading and before the final ranking. With successful negotiations, a contract will be developed with the selected firm, based on the negotiated price and scope of services and submitted for approval by the Board of County Commissioners. 1.2 The COUNTY will use a Selection Committee in the Request for Proposal selection process. 1.3 The intent of the scoring of the proposal is for respondents to indicate their interest, relevant experience, financial capability, staffing and organizational structure. 1.4 The intent of the oral presentations, if deemed necessary, is to provide the vendors with a venue where they can conduct discussions with the Selection Committee to clarify questions and concerns before providing a final rank. 1.5 Based upon a review of these proposals, the COUNTY will rank the Proposers based on the discussion and clarifying questions on their approach and related criteria, and then negotiate in good faith an Agreement with the top ranked Proposer. 1.6 If, in the sole judgment of the COUNTY, a contract cannot be successfully negotiated with the top-ranked firm, negotiations with that firm will be formally terminated and negotiations shall begin with the firm ranked second. If a contract cannot be successfully negotiated with the firm ranked second, negotiations with that firm will be formally terminated and negotiations shall begin with the third ranked firm, and so on. The COUNTY reserves the right to negotiate any element of the proposals in the best interest of the COUNTY. GRADING CRITERIA FOR DEVELOPMENT OF SHORTLIST: 1.7 For the development of a shortlist, this evaluation criterion will be utilized by the COUNTY’S Selection Committee to score each proposal. Proposers are encouraged to keep their submittals concise and to include a minimum of marketing materials. Proposals must address the following criteria: Evaluation Criteria Maximum Points 1. Cover Letter / Management Summary 5 Points 2. Certified Minority Business Enterprise 5 Points 3. Business Plan 20 Points 4. Cost of Services to the County 20 Points 5. Experience and Capacity of the Firm 20 Points 6. Specialized Expertise of Team Members 20 Points 7. Local Vendor Preference 10 Points TOTAL POSSIBLE POINTS 100 Points Tie Breaker: In the event of a tie at final ranking, award shall be made to the proposer with the lower volume of work previously awarded. Volume of work shall be calculated based upon total dollars paid to the proposer in the twenty-four (24) months prior to the RFP submittal deadline. Payment information will be retrieved from the County’s financial system of record. The tie breaking procedure is only applied in the final ranking step of the selection process and is invoked by the Procurement Services Division Director or designee. In the event a tie still exists, selection will be determined based on random selection by the Procurement Services Director before at least three (3) witnesses. ---------------------------------------------------------------------------------------------------------------------------------------------------------- Each criterion and methodology for scoring is further described below. EVALUATION CRITERIA NO. 1: COVER LETTER/MANAGEMENT SUMMARY (5 Total Points Available) Provide a cover letter, signed by an authorized officer of the firm, indicating the underlying philosophy of the firm in providing the services stated herein. Include the name(s), telephone number(s) and email(s) of the authorized contact person(s) concerning proposal. Submission of a signed Proposal is Vendor's certification that the Vendor will accept any awards as a result of this RFP. EVALUATION CRITERIA NO. 2: CERTIFIED MINORITY BUSINESS ENTERPRISE (5 Total Points Available/#Page Limitation) Submit certification with the Florida Department of Management Service, Office of Supplier Diversity as a Certified Minority Business Enterprise. EVALUATION CRITERIA NO. 3: BUSINESS PLAN (20 Total Points Available/# Page Limitation) In this tab, include but not limited to: • Detailed plan of approach (including major tasks and sub-tasks). • Detailed time line for completion of the project. • Include with the Business Plan or as an attachment, a copy of a report as an example of work product. This should be for one of the projects listed as a reference. EVALUATION CRITERIA NO. 4: COST OF SERVICES TO THE COUNTY (20 Total Points Available# Page Limitation) In this tab, include but not limited to: • Provide the annual total cost and estimated calendar day duration (including projected hours) for which your firm will provide the work as described in this RFP. • Provide a schedule of values and deliverables. • Provide proposed hourly fee schedule of principals and staff (including sub-vendors, if any). EVALUATION CRITERIA NO. 5: EXPERIENCE AND CAPACITY OF THE FIRM (20 Total Points Available) In this tab, include but not limited to: • Provide information that documents your firm’s and subcontractors’ qualifications to produce the required deliverables, including abilities, capacity, skill, and financial strength, and number of years of experience in providing the required services. • Describe the various team members’ successful experience in working with one another on previous projects. The County requests that the vendor submits no fewer than three (3) and no more than ten (10) completed reference forms from clients (work performed within the last three years) whose projects are of a similar nature to this solicitation as a part of their proposal. Provide information on the projects completed by the vendor that best represent projects of similar size, scope and complexity of this project using form provided in Attachment B – Form 8. Vendors may include two (2) additional pages for each project to illustrate aspects of the completed project that provides the information to assess the experience of the Proposer on relevant project work. EVALUATION CRITERIA NO. 6: SPECIALIZED EXPERTISE OF TEAM MEMBERS (20 Total Points Available/# Page Limitation) In this tab, include but not limited to: • Description of the proposed contract team and the role to be played by each member of the team. • Attach brief resumes of all proposed project team members who will be involved in the management of the total package of services, as well as the delivery of specific services. • Attach resumes of any sub-vendors and attach letters of intent from stated sub-vendors must be included with proposal submission. EVALUATION CRITERIA NO. 7: LOCAL VENDOR PREFERENCE (10 Total Points Available) Local business is defined as the vendor having a current Business Tax Receipt issued by the Collier or Lee County Tax Collector for at least one year prior to proposal submission to do business within Collier County, and that identifies the business with a permanent physical business address located within the limits of Collier or Lee County from which the vendor’s staff operates and performs business in an area zoned for the conduct of such business. June 11, 2018 Proposal to Provide Annual Audit Services to: Collier County, Florida RFP #18-7387 Prepared by: Martin A. Redovan, CPA, Principal martin.redovan@CLAconnect.com direct 239-226-9902 CLAconnect.com WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING Investment advisory services are offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. ©2018 CliftonLarsonAllen LLP | ii TABLE OF CONTENTS Evaluation Criteria No. 1: Cover Letter/Management Summary ______________________________ 1 Evaluation Criteria No. 2: Certified Minority Business Enterprise _____________________________ 4 Evaluation Criteria No. 3: Business Plan _________________________________________________ 5 Detailed Plan of Approach __________________________________________________________ 5 Detailed Time Line for Completion of the Project _______________________________________ 18 Business Plan/Report Example ______________________________________________________ 19 Evaluation Criteria No. 4: Cost of Services to the County __________________________________ 20 Annual Total Cost and Estimated Calendar Day Duration _________________________________ 20 Schedule of Values and Deliverables _________________________________________________ 22 Proposed Hourly Fee Schedule ______________________________________________________ 23 Evaluation Criteria No. 5: Experience and Capacity of the Firm _____________________________ 24 Qualifications and Experience ______________________________________________________ 24 Successful Experience Working Together ______________________________________________ 28 Reference Forms _________________________________________________________________ 28 Evaluation Criteria No. 6: Specialized Expertise of Team Members __________________________ 32 Proposed Contract Team and Roles __________________________________________________ 32 Brief Resumes of Proposed Project Team Members _____________________________________ 35 Resumes of Subcontractors and Letter of Intent ________________________________________ 44 Evaluation Criteria No. 7: Local Vendor Preference _______________________________________ 45 Additional Information _____________________________________________________________ 46 Innovation ______________________________________________________________________ 46 Industry Participation and Thought Leadership _________________________________________ 46 GASB Insight Potentially Affecting Current and Future Audits______________________________ 47 Appendix ____________________________________________________________________Appendix Required Forms _____________________________________________________________ Appendix  Form 2: Vendor Check List o License to Practice in Florida o Signed Addenda  Form 3: Conflict of Interest Affidavit  Form 4: Vendor Declaration Statement  Form 5: Immigration Affidavit Certification o E-Verify Company Profile  Form 6: Vendor Substitute W – 9  Insurance and Bonding Requirements Quality Control Procedures and Peer Review Report _______________________________ Appendix ©2018 CliftonLarsonAllen LLP | 1 EVALUATION CRITERIA NO. 1: COVER LETTER/MANAGEMENT SUMMARY June 11, 2018 Evelyn Colon, Procurement Strategist Collier County Procurement Services Division 3295 Tamiami Trail East, Bldg. C-2 Naples, FL 34112 RE: Request for Proposals (RFP) for Annual Audit Services – RFP Number: 18-7387 Dear Members of the Selection Committee: Thank you for inviting us to propose our services to you. CliftonLarsonAllen LLP (“CLA”) gladly welcomes the opportunity to continue sharing our approach to helping Collier County Board of County Commissioners and Constitutional Officers, collectively (“the County”) meet its need for professional services. The enclosed proposal responds to your request for audit services for three (3) years with two (2) one (1) year renewal options. Philosophy of the Firm We promise to know you and help you. We are dedicated to our clients, working with them every step of the way. We do this by delivering our work in an exceptional manner, caring enough to engage in a personal conversation and really listen to what our clients say, and responding with the full breadth of our firm’s capabilities in the services we provide to every client we serve. Our professionals are dedicated to the clients they serve, combining innovative solutions with tailored approaches and in-depth experience to meet the needs of our clients. Our focus is always to create a lasting relationship with our clients and to be there to aid them in their success. We are confident that our extensive experience serving similar governmental entities, bolstered by our client- oriented philosophy and depth of resources, will make CLA a top qualified candidate to fulfill the scope of your engagement. The following differentiators are offered for the County’s consideration:  We know you. We have been working with the County over the past several years, cultivating a deep and rich relationship with your staff and management team through the audit services we provide to you. We have been fortunate in standing by the County, providing our accounting insights and knowledge during the most crucial and vital times. The work we’ve performed helps us hit the ground running when we begin the engagement, so you will not have to bring us up to speed on your core operations, saving you time, money, and stress on your employees!  National Footprint with a Local Touch. As one of the nation’s leading professional services firms, and one of the largest firms that specialize in the public sector, we understand how crucial it is to leverage our resources so that our clients get the personal, local touch they need. Along with the experience and resources of more than 5,400 employees in over 110 locations, we have several Florida locations including CliftonLarsonAllen LLP 4099 Tamiami Trail North Suite 300 Naples, FL 34103-3548 239-262-8686 | fax 239-262-7343 CLAconnect.com ©2018 CliftonLarsonAllen LLP | 2 our Naples office not that far from the County’s office. We are committed to continuing to bring to the County the most qualified professionals, utilizing industry leaders from across the firm to provide on-site, hands-on knowledge and strategies. Our professionals are carefully selected for our clients, allowing us to bring people familiar with local regulations, reporting requirements, business activities, and structure. The County will have the ability to access one of the country’s largest and most knowledgeable pools of public sector resources while still having a team right there with you.  Specialized Government Insight and Resources. With 60 years of experience in the state and local government industry, CLA has one of the largest governmental audit and consulting practices in the country. We bring extensive experience providing a variety of audit and consulting services to state and local government entities, including internal control audits, agreed-upon procedures, compliance audits, financial statement audits, and single audits. Our Government Services Team serves more than 2,100 governmental entities nationwide, including numerous counties, cities, states and state agencies, and school boards.  Uniform Guidance Experience. CLA performs Uniform Guidance (formerly A-133) single audits for hundreds of organizations annually, ranking first in the nation for the number of single audits performed by any CPA firm. The single audit requires a specific set of skills in order to properly perform the procedures. As such, we have developed a group of professionals who specialize in providing single audit services. This group is well-versed in both financial and compliance reporting of grants. Your need for single audit services falls directly into one of CLA’s greatest strengths.  Ability to Meet Deadlines. We are well-balanced when it comes to workload issues, and have never had a problem meeting your deadlines. We focus on proven project management techniques to ensure all parties (County departments and CLA) stay on track and accountable to each other. We understand the sense of urgency required in meeting regulatory deadlines and assist clients in making the audit process more efficient to ensure a smooth, timely process. CLA does not provide financial auditing services to public companies, so 100% of focus is on meeting your deadlines. Our staff and management are committed to your job until it is done. We do not redeploy resources to “more important” clients in different industries to make our business model work. The Public Sector is one of our major practice areas.  Thought Leadership. Members of our firm have held numerous thought leadership positions, including the GASB board, AICPA Government Audit Quality Executive Committee, GFOA’s Committee on Accounting, Auditing and Financial Reporting Standing Committee, AICPA’s State and Local Government Standing Committee, and GFOA’s Special Review Executive Committee. We have incorporated our experience with these boards and committees into our audit framework.  GASB Insight. Our significant knowledge of technical issues and GASB pronouncements will be especially beneficial to the County. We will proactively work with the County to address the reporting and auditing impact of each pronouncement or issue in advance of the implementation date. We are confident that our technical approach, insight, and resources will result in unparalleled client service for the County. For ease of evaluation, the structure of our proposal follows your RFP section titled, Grading Criteria for Development of Shortlist. ©2018 CliftonLarsonAllen LLP | 3 Our authorized contact person(s) concerning this proposal is Martin A. Redovan, Engagement Principal. His contact information is as follows: Martin A. Redovan, CPA, Principal 239-226-9900 martin.redovan@CLAconnect.com CLA understands that submission of a signed Proposal is Vendor's certification that the Vendor will accept any awards as a result of this RFP. We are eager to work with you and welcome the chance to present our proposal to the County’s entire management team. If you have any questions about our offerings, please do not hesitate to contact me. Sincerely, CliftonLarsonAllen LLP Martin A. Redovan Principal ©2018 CliftonLarsonAllen LLP | 4 EVALUATION CRITERIA NO. 2: CERTIFIED MINORITY BUSINESS ENTERPRISE While we are not a small or minority-owned business, we are committed to utilizing the services of such firms whenever possible. This includes using small and/or minority-owned businesses as subcontractors, as well as vendors. For this engagement, however, we do not foresee using any subcontractors. CLA strives to fill its professional positions with the best and most experienced accountants regardless of race or gender. Overall, CLA is committed to a diverse and inclusive work environment and culture, and we value the perspectives of our people. We recognize that targeted outreach to diversity-based organizations is an important part of connecting with a diverse pool of potential applicants/future employees and critical to our success as a firm. At CLA, we encourage and embrace an inclusive culture that brings different beliefs and perspectives so that we can truly know and help each other and our clients. We do this by inviting perspectives and building relationships based on trust and respect, which together with connection are the foundation for our CLA Promise. ©2018 CliftonLarsonAllen LLP | 5 EVALUATION CRITERIA NO. 3: BUSINESS PLAN Detailed Plan of Approach Our audit objective extends beyond the issuing of an opinion on financial statements. We believe that a good audit yields substantial information for management, and is a valuable tool in recognizing opportunities and identifying areas that can be strengthened. An effective audit performed by our team will also provide:  An objective look at your policies and procedures  Valuable suggestions for improvements in your financial operations and other areas  An analysis of trends and unusual variations from year-to-year  Protection for current and future resources through improved internal controls  A deterrent to embezzlement and other fraudulent activities Commitment to Communication with Management As you will see, we are committed to ongoing communication throughout the engagement. Continual communication starts when an engagement letter is issued, continues until the completion or closeout of an engagement and throughout the remainder of the year. We believe effective communication is critical to a successful engagement. This communication includes the exchange of ideas and advice as changes are considered or implemented by the entity or the accounting profession. During the engagement we will hold regular status meetings with the Clerk's Finance, management of the Board of County Commissioners and management of each Constitutional Officer to enhance day-to-day operations, results, and any issues are commonly understood and addressed. The objectives of tracking and formally reporting the engagement status are to:  Provide a consistent technique for monitoring progress against plan  Identify any issues quickly to allow for timely corrective action  Provide an objective rather than subjective evaluation of status  Provide timely information on a regular basis  Assist with obtaining buy-in of any audit recommendations on a timely basis Our proactive measures foster communications, both written and oral, which are ongoing, relevant and routine to our engagements. Our commitment to this practice encourages open lines of communication and often prevents and/or mitigates service delivery issues. Our professionals are trained in documenting observations, recommendations, business issues, and new developments as part of their daily routine. Benefits of CLA’s Risk-Based Approach Our audit services are designed to protect the interests of the members, governance, and management by concentrating on high-risk areas. Risk identification is the first step of the audit process, providing the basis upon which the overall plan is developed. Our risk assessment process involves consideration of the following types of risk:  Inherent risk - that an error in the accounting and reporting process may occur  Control risk - that internal control systems designed to prevent/detect errors may fail  Audit detection risk - the risk that audit procedures may fail to detect errors ©2018 CliftonLarsonAllen LLP | 6 We will conduct our financial statement audit in four primary phases, as shown in Figure 1 below: Figure 1. Proven Methodology. Our audit is performed based on a risk -based approach. We conduct our audits under the concept of “understanding the entity.” This concept is based fundamentally on the fact that the County (the Board and each Constitutional Officer) is unique. By understanding the entity, we gain the necessary perspective for performing an effective audit. Our audit approach places particular emphasis on the planning phase to determine maximum efficiency and effectiveness. Planning & Strategy The main objective of the planning phase is to identify significant areas and design efficient audit procedures. We will accomplish our planning by following the methodology below:  Conduct an entrance meeting with the County – Martin Redovan and staff will meet with the County personnel to mutually agree on an outline of responsibilities and timeframes. The agenda will include but not be limited to the following: - Establish audit approach and timing schedule - Assistance to be provided by the County personnel - Application of generally accepted accounting principles - Concerns of the County’s management - Establishment of report parameters and timetables - Progress reporting process - Establish principal contacts  Update our understanding of the operations of the County, including any changes in its organization, management, and internal and external factors influencing the operating environment. We will utilize reference materials such as the budget and related materials, organizational charts, manuals and programs, financial, and other management information systems  Identify significant accounts and accounting applications, critical audit areas, significant provisions of laws and regulations, and relevant controls over operations  Determine the likelihood of effective Information Systems (IS) - related controls  Perform a preliminary overall risk assessment  Confirm protocol for meeting with and requesting information from relevant staff  Establish a timetable for the fieldwork phase of the audit  Determine a protocol for using Interactive Data Extraction and Analysis (IDEA), our data extraction and analysis software, to facilitate timely receipt and analysis of reports from management  Compile an initial comprehensive list of items to be prepared by the County, and establish mutually agreed upon deadlines PHASE 4 Reporting & Follow-Up PHASE 3 Testing & Analysis PHASE 2 Systems Evaluation PHASE 1 Planning & Strategy Phase 1 ©2018 CliftonLarsonAllen LLP | 7 We will document our planning through preparation of the following:  Entity Profile. This profile will help us update our understanding of the County activities, organizational structure, services, management, key employees and regulatory requirements.  Preliminary Analytical Procedures. These procedures will assist in planning the nature, timing and extent of auditing procedures that will be used to obtain evidential matter. They will focus on enhancing our understanding of the financial results, and will be used to identify any significant transactions and events that have occurred since the last audit date, as well as to identify any areas that may represent specific risks relevant to the audit.  General Risk Analysis. This will contain our overall audit plan, including materiality calculations, fraud risk assessments, overall audit risk assessments, effects of our IS assessment, timing, staffing, client assistance, a listing of significant provisions of laws and regulations and other key planning considerations.  Account Risk Analysis. This document will contain the audit plan for the financial statements, including risk assessment and the extent and nature of testing by assertion.  Prepared by Client Listing. This document will contain a listing of schedules and reports to be prepared by the County personnel with due dates for each item. One of the key elements in the planning of this audit engagement will be the heavy involvement of principals, directors and managers. We will clearly communicate any issues in a timely manner, and will be in constant contact with management of the Board and each Constitutional Officer as to what we are finding and where we expect it will lead. We will develop our audit programs during this phase. Utilizing the information we have gathered and the risks identified we will produce an audit program specifically tailored for each entity. This program will detail by major section the nature and types of tests to be performed. We view our programs as living documents, subject to change as conditions warrant. Systems Evaluation During the systems evaluation phase, we will gain an understanding of the internal control structure of the County Board and each Constitutional Officer for financial accounting and relevant operations. Next, we will identify control objectives for each type of control that is material to the financial statements, and then identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. Finally, we will determine the nature, timing, and extent of our control testing and perform tests of controls. This phase of the audit will include testing of certain key internal controls:  Electronic data, including general and application controls reviews and various user controls  Financial reporting and compliance with laws and regulations We will test controls over certain key cycles. One audit efficiency initiative is to rely heavily on internal controls when appropriate, and to creatively look at internal control testing to make it as efficient as possible. This means not routinely performing detailed tests of transactions using large samples. We first seek to identify key controls, and then identify possible testing through alternative methods, such as observation, interviews, and re- performance. These tests serve not only to gather evidence about the existence and effectiveness of internal control for purposes of assessing control risk, but also to gather evidence about the reasonableness of an account balance. We will also develop our internal control tests to assess the compliance with certain provisions of laws, regulations, contracts, and grants for which noncompliance could have a direct and material effect on the Phase 2 ©2018 CliftonLarsonAllen LLP | 8 determination of financial statement amounts. Our use of multi-purpose tests allows us to provide a more efficient audit without sacrificing quality. Our assessment of internal controls will determine whether the County Board and each Constitutional Officer has established and maintained internal controls to provide reasonable assurance that the following objectives are met:  Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets  Assets are safeguarded against loss from unauthorized acquisition, use, or disposition  Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements We will finalize our audit programs during this phase. We will also provide an updated Prepared by Client Listing based on our test results and our anticipated substantive testing. During the internal control phase, we will also perform a review of general and application Information Systems (IS) controls for the applications that are significant to financial statements to conclude whether IS general controls are properly designed and operating effectively, and consider application controls as part of the internal control assessment in the financial statement audit. Our strategy for the IS review of the applications will involve reviewing all of the general control activities, including the computerized and manual processes. We will determine the scope of work by applying the concepts of materiality and risk assessment to effectively reduce examination inefficiencies. When planning this examination, we will gain an understanding of the County’s operations by reviewing its current controls and control objectives as documented, and will also review prior years’ audit work and the status of corrective actions. Based on our preliminary review, we will perform an initial risk assessment of each critical element in each general control category, as well as an overall assessment of each control category. We will then proceed to assess the significant computer-related controls. For IS-related controls that we deem to be ineffectively designed or not operating as intended, we will gather sufficient evidence to support appropriate findings and will provide recommendations to improve internal controls. For those IS controls that we deem to be effectively designed, we will perform testing to determine if they are operating as intended through a combination of procedures, including observation, inquiry, inspection, and re-performance. Testing & Analysis The extent of our substantive testing will be based on results of our internal control tests. It has been our experience that governmental entities, like the County, often have a system of internal controls that, with appropriately designed tests and correlation to account balances, can be used to limit the extent of account balance substantiation testing. Audit sampling will be used only in those situations where it is the most effective method of testing. Before deciding to sample, we will consider all possible approaches and audit techniques. Items where, in our judgment, acceptance of some sampling risk is not justified will be examined 100 percent. These may include unusual items or items for which potential misstatements could individually equal or exceed tolerable error. After identifying individually significant or unusual items, we will decide on the audit approach for the remaining balance of items by considering tolerable error and audit risk. This may include (1) testing a sample of the remaining balance; (2) lowering the previously determined threshold for individually significant items to increase Phase 3 ©2018 CliftonLarsonAllen LLP | 9 the percent of coverage of the account balance; or (3) applying analytical procedures to the remaining balance. When we elect to sample balances, we will use IDEA to efficiently control and select our samples. Our workpapers during this phase will clearly document our work as outlined in our audit programs. We will also provide the County Board and each Constitutional Officer with status reports during the course of the audit fieldwork. As in all phases of the audit, we will be in communication with the County Board and each Constitutional Officer to determine that all identified issues are resolved in a timely manner. We will also hold a final exit conference with the County Board and each Constitutional Officer to summarize the results of our fieldwork and review significant findings. Reporting & Follow-Up Reports to management will include oral and/or written reports regarding:  Independent Auditors’ Report (including and “in-relation-to” opinion for supplementary information)  Independent Auditors’ Report on Internal Control over financial reporting and on compliance and other matters based on an audit of Financial Statements Performed in Accordance with Government Auditing Standards for the County and each Constitutional Officer  Independent Auditor’s Report on Compliance for Each Major Federal Program, and State Project and Report on Internal Control Over Compliance Required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General  Management Letter as required by Chapter 10.550, Rules of the Auditor General for the County and each Constitutional Officer, including our review of the AFR and our documented consideration of the financial condition of the County  Independent Accountants’ Report as required by Chapter 10.550, Rules of the Auditor General for the County Board and each Constitutional Officer.  Independent Accountants’ Report for any other additional attestations as may be required by Florida Statutes or Florida Administrative Code  Independent Auditors’ Report on the stand-alone financial statements of the Collier County Water and Sewer District  Independent Auditors’ Report on the Statement of County Funded Court Related Functions required by Florida Statutes, Section 29.0085  Report on Agreed Upon Procedures for the Sheriff’s Investigative Trust Fund Report  Written Communication to Those Charged with Governance, which includes the following areas:  Our responsibility under auditing standards generally accepted in the United States of America  Changes in significant accounting policies or their application  Unusual transactions  Management judgments and accounting estimates  Significant audit adjustments  Other information in documents containing the audited financial statements  Disagreements with the County  The County’s consultations with other accountants  Major issues discussed with management prior to retention  Difficulties encountered in performing the audit  Fraud or illegal acts Once the final reviews of working papers and financial statements are completed, which is a process that actually starts while the fieldwork is in process, our opinion, the financial statements and management letter will be issued. Phase 4 ©2018 CliftonLarsonAllen LLP | 10 We will provide management of the Board and the Constitutional Officers a draft of any comments that we propose to include in the management letter, enabling you to review the comments for accuracy prior to final release. Any items that come to our attention that are not what we consider major items may be discussed verbally with management and not included in the management letter. Our management letter will include items noted during our analysis of your operations. We will also make a formal presentation of the results of the audit to those charged with governance of County Board and Constitutional Officers. Single Audit Approach In the current environment of increased oversight, it is more important than ever to find qualified auditors who have significant experience with federal grants specific to the County and can enhance the quality of the County’s single audit. Therefore, the Single Audit will be performed by a team of individuals who are managed by personnel who specialize in Single Audits in accordance with the Uniform Guidance (2 CFR Part 200, Subpart F) and the Florida Single Audit Act (Section 215.97, Florida Statutes) and who will offer both knowledge and quality for the County. As part of our quality control process, the single audit will be reviewed by a firm Designated Single Audit Reviewer (DSAR). Grant compliance can be a confusing topic and many of our clients rely on their federal and state funding as a major revenue source, so it is important that they understand what these changes mean to their organization. As a leader in the industry, CLA was out in front of these changes and informed our clients of how to be proactive about these changes could impact their entity. CLA professionals are available to provide guidance and tools tailored to the County’s needs, and to assist in compliance with the new rules. The AICPA clarified auditing standard, AU-C 935 “Compliance Audits” requires risk-based concepts to be used in all compliance audits including those performed in accordance with 2 CFR Part 200 and the Florida Single Audit Act. Our risk-based approach incorporates this guidance. We will conduct our single audit in three primary phases, as shown below: Risk Assessment & Planning The risk assessment and planning phase will encompass the overall planning stage of the single audit engagement. During this phase, we will work closely with the County’s management to determine that programs and all clusters of programs are properly identified and risk-rated for determination of the major programs for testing. We will also review the forms and programs utilized in the prior year to determine the extent of any changes which are required. We will accomplish this by following the methodology below: Determine the threshold to distinguish between Type A and B programs, including the effect of any loans and loan programs. Utilizing the preliminary Schedule of Expenditure of Federal Awards and State Financial Assistance, we will identify the Type A and Type B programs in accordance with the Uniform Guidance and Florida Single Audit Act requirements. Identifying the programs tested and the findings reported for the past two fiscal years. Determine and document the program risk based on the past two Single Audits. Distribute Type B program questionnaires and/or coordinate interviews with grant program personnel to determine risk associated with Type B programs. Phase 1 Phase 1 Risk Assessment & Planning Phase 2 Major Program Testing Phase 3 Final Assessment & Reporting ©2018 CliftonLarsonAllen LLP | 11 Determine major programs to be tested for the current fiscal year based on the previous steps. Assess compliance and internal controls over compliance for each major program identified against the proper regulations (Circulars vs. Uniform Guidance and State Compliance Supplement). Prepare and distribute templates to the County’s management to obtain an update on the status of prior year findings. Major Program Testing We will determine the programs to be audited based on the risk assessment performed in the planning phase. We will perform the audit of the programs in accordance with the proper regulations (Circulars vs. Uniform Guidance) and the Rules of the Auditor General. To accomplish this, we will perform the following: Schedule an introductory meeting and notify the County’s management of the major programs. Plan and execute the testing of the expenditures reported on the Schedule of Expenditures of Federal Awards and State Financial Assistance. Perform tests of compliance and internal controls over compliance for each major program. Conduct entrance and exit conference meetings with each grant manager. Final Assessment & Reporting We will re-perform the steps noted in the preliminary assessment and planning stage once the final Schedule of Expenditures of Federal Awards and State Financial Assistance is received to determine if additional major programs were identified. Based on the final determination of the programs we will perform the following: Identify Type A and Type B programs which were not previously identified. Re-assess the risk and determine if we are required to audit additional programs. Perform compliance testing at the entity wide level related to procurement and cash management requirements. Perform testing to validate the status of prior year findings for programs not selected for audit. Prepare the Schedule of Findings and Questioned Costs. Conduct exit conference with the County’s management to review drafts of required reports. Submit Data Collection Form to the Federal Clearinghouse. Throughout the single audit, we will maintain communication through periodic progress meetings with those designated by the County’s. These meetings will be on a set schedule, but as frequently as the County determines. During these meetings, we will discuss progress impediments and findings as they arise. Procedures Used to Understand Internal Processes and Controls Internal processes and controls are a critical component of an organization’s operations and understanding those processes and controls is a key component of our audit. As your prior auditors, we have a thorough understandings of your internal processes and controls, but we will continue to update our documentation and understanding of the County’s internal processes and controls each year. We strive to develop our documentation in the least intrusive manner possible, while still maintaining our professional responsibilities. Each year, we would utilize a combination of internal control forms and interviews with key accounting personnel to document our understanding of the County’s internal processes and control, starting with all of existing documentation of controls and processes from the prior years. Tests of design and operating effectiveness would then be performed to confirm our understanding. Phase 2 Phase 3 ©2018 CliftonLarsonAllen LLP | 12 The Committee of Sponsoring Organizations of the Treadway Commission (COSO) has established a framework for internal control systems. Under the COSO framework, internal control is a process to provide reasonable assurance that those internal objectives, including effectiveness and efficiency of business operations, reliability of financial reporting, and compliance with applicable laws and regulations, will be met. Our audit approach is designed to evaluate and test the departmental internal controls in accordance with COSO concepts. Our procedures include a review of the overall control environment, determination of the internal controls which are determined to be direct and material to the financial statements and the federal program or state project under review, determination of the adequacy of those procedures, and testing of the procedures to determine if they are functioning as designed. During the planning and internal control phases of our audit, we will develop our understanding of the County business operations and internal control structure for financial accounting and relevant operations through observation, discussion, and inquiries with management and appropriate personnel. During this phase of the audit, we will review budgets and related materials, organization charts, accounting and purchase manuals, and other systems documentation that may be available. Once we understand your operations, we will then identify control objectives for each type of control that is material to the financial statements. The next step will be to identify and gain an understanding of the relevant control policies and procedures that effectively achieve the control objectives. We will then determine the nature, timing and extent of our control testing, and perform tests of controls. This phase of the audit will include extensive testing of controls over transactions, financial reporting, and compliance with laws and regulations. Whenever possible, we will use dual-purpose tests to reduce the need to select multiple samples for internal control and compliance testing. We will be as efficient as possible, thereby reducing the disruption to your operations while achieving our audit objectives. Our assessment of internal controls will determine whether the County has established and maintained internal controls to provide reasonable assurance that the following objectives are met: Transactions are properly recorded, processed, and summarized to permit the preparation of reliable financial statements and to maintain accountability over assets Assets are safeguarded against loss from unauthorized acquisition, use, or disposition Transactions are executed in accordance with laws and regulations that could have a direct and material effect on the financial statements Our workpapers during this phase will clearly document our work through the preparation of the following for each significant transaction cycle or accounting application: Audit program Cycle memo and supporting documentation Account risk analysis (ARA) Specific control evaluation (SCE) Figure 2: COSO Internal Control: Integrated Framework ©2018 CliftonLarsonAllen LLP | 13 Extent of EDP Software to be used in Engagement Where appropriate, we will use CaseWare’s IDEA (IDEA) software. IDEA is a file interrogation, or data analysis, tool that facilitates an efficient audit of large volumes of transactions. IDEA is able to read electronic downloads of transactions in many different formats, including text files, spreadsheet files, print report, PDF, and database files. Potential applications for IDEA at the County may include the following: Sampling for testing of internal controls Sampling of disbursements Selection of journal entries related to identified fraud risks Summation of large volumes of similar transactions or sub-ledgers to determine agreement to the general ledger Substantive testing in areas such as P-cards, utility billing, procurement, payroll Type and Extent of Analytical Procedures to be used In accordance with U.S. generally accepted auditing standards, analytical review procedures will be performed in the planning process and during the final review stage of the audit. Additionally, analytical procedures will be performed as part of our year-end substantive testing. An example of analytical procedures performed during planning activities will include comparison of actual results to the budget (as amended) through the use of the County’s normally generated reports. Examples of analytical procedures employed during our substantive testing include comparison of expected non-ad valorem assessments (percent collected) to actual revenue recognized, a predictive test for return on investments, interest expense, and predictive tests of year-end accruals. Other substantive procedures may be supplemented by analytical procedures, depending on our audit risk assessment process. Approach to be taken in Determining Laws and Regulation Auditing Standards AU-C Section 935 – “Compliance Audits”, establishes standards for testing and reporting on compliance with laws and regulations. We will perform tests to determine the County’s compliance with certain provisions of laws and regulations (Florida Statutes, Florida Administrative Code, Federal Rules, and the County’s significant ordinances), contracts, debt agreements, and grant agreements where noncompliance could have a direct and material effect on the financial statements. The institutional knowledge and experiences that our local engagement team members have gained while working with Collier County and other Florida counties and municipalities, both large and small, have prepared our proposed engagement team to be able to swiftly handle any compliance or regulatory issue that may arise during the audit of the County. In addition to the requirements of “Compliance Audits” mentioned above, we will consider the requirements of the Uniform Grant Guidance, the Florida Single Audit Act and Rules of the Auditor General. We will test and report on compliance with certain Florida Statutes as required by the Auditor General as appropriate. These include: 218.415, Florida Statutes, regarding investments (all entities) Section 365.172(10) and 365.172(2)(d), Florida Statutes, regarding emergency communications number E911 system fund (Board and Sheriff) Section 288.8018(1), Florida Statutes, regarding the Deepwater Horizon oil spill (Board) Section 61.181, Florida Statutes, regarding alimony and child support payments (Clerk) Sections 28.35 and 28.36, Florida Statutes, regarding clerks of court performance standards and budgets (Clerk) ©2018 CliftonLarsonAllen LLP | 14 Ability to Meet Audit Timeline Collier County is a very important client to us. We currently have time set aside in the schedule for all of the staff listed to perform the Collier County audit to assure continuity. Our current and projected workload will not have an impact on our commitment to the County. We have a proven track record of meeting Collier County deadlines. Data Analytics In addition to standard auditing methodology, a distinguishing aspect of CLA’s audit services incorporates the power of data analytics to multiply the value of the analyses and the results we produce for clients. CLA’s data methodology is a six-phase, systematic approach to examining an organization’s known risks and identifying unknown risks. Successful data analysis is a dynamic process that continuously evolves throughout the duration of an engagement and requires collaboration of the engagement team. Our data methodology is depicted below: Data analytics are utilized throughout our audit process, our Risk Assessment, Data Analytics and Review (“RADAR”) is a specific application of general ledger data analytics that has been implemented on all audit engagements. RADAR is an innovative approach created and used only by CLA that aims to improve and replace traditional preliminary analytics that were being performed. The phases in our data analytics process are as follows: 1. Planning ©2018 CliftonLarsonAllen LLP | 15 In the planning stage of the engagement, the use of data analysis is considered and discussed to ensure that analytics are directed and focused on accomplishing objectives within the risk assessment. Areas of focus, such as journal entries, cash disbursements, inventory, and accounts receivable are common. 2. Expectations We consider the risks facing our client and design analytics to address these risks. Through preliminary discussions with management and governance, we develop and document expectations of financial transactions and results for the year. These expectations will assist in identifying anomalies and significant audit areas in order to appropriately assess risk. 3. Data Acquisition Sufficient planning, a strong initial risk assessment, and an adequate understanding of your systems will serve as the foundation necessary to prepare our draft data request list. We will initially request information in written format and conduct follow-up conversations ensuring CLA practitioners our staff share a mutual understanding of the type of data requested and the format required. If there are going to be any challenges/obstacles related to obtaining data, or obtaining data in the preferred format, they will generally be discovered at this point. 4. Technical Data Analysis Technical analysis of the data requires the skillful blend of knowledge and technical capability. Meaningful technical analysis provides the engagement team with a better understanding of the organization. The additional clarity assists the engagement team to better assess what is “normal” and, in turn, be better suited to spot anomalies, red-flags and other indications of risk. Analytics generally fall into five categories, each looking into the data set in a different way and deployed with a different purpose. 5. Interpret Results and Subsequent Risk Assessment Trends and anomalies will be identified through the performance of the above referenced analytics. Comments regarding the interpretation of those trends and anomalies will be captured. When trends are identified they are reconciled against expectations. For anomalies identified, the approach to further audit procedures will be considered 6. Response and Document The last process is to capture responses and ensure our procedures are properly documented. Abstracts, charts or summaries of both trends and anomalies are retained in the audit documentation to support our identification of risks .Our analysis can be tailored and customized to help analyze an array of information, including client specific and proprietary data. Key benefits of data analytics include:  Built-in audit functionality including powerful, audit specific commands and a self-documenting audit trail  100 percent data coverage, which means that certain audit procedures can be performed on entire populations, and not just samples  Unparalleled data access allows us to access and analyze data from virtually any computing environment  Eliminates the need to extrapolate information from errors (a common effort when manually auditing data) and allows for more precise conclusions ©2018 CliftonLarsonAllen LLP | 16 Figure 3 illustrates typical data analytics scenarios. Figure 3. Data Analytics. At the end of a series of pre-determined analytics (often retrieved from multiple proprietary accounting systems) that are customized to the project at hand, we identify anomalies and potential errors in transactions. I n every case, we review what appears to be inappropriate activity, including supporting documentation evidenci ng the transactions. Use of Computer Assisted Audit Techniques One of CLA’s advantages is access to advanced audit tools and technology. Throughout the audit we may employ the use of Computer Assisted Audit Techniques (CAATs) to increase efficiency and effectiveness. The key CAATs that we will use include:  Interactive Data Extraction and Analysis (IDEA) – IDEA is a statistical data analysis tool that has the ability to import data from virtually any data source or file type, with no limitations on the size of the data files that can be examined. IDEA utilizes powerful, built-in tools designed for the performance of audits and fraud investigations, providing the ability to: o Statistically sample, summarize, stratify and/or perform an aging of large data sets o Compare, join, append or otherwise manipulate multiple, related populations of data o Identify gaps or duplicates in record sequences o Extract subsets of data using a variety of criteria or filters o Build reports and graphs to summarize testing results  FX Engagement – FX Engagement is our “paperless” audit product. This product allows us to file and save all of our audit workpapers in an electronic storage capacity; allowing our firm to save time and resources associated with maintaining and storing paper files. FX Engagement also boasts a trial balance software program, which is utilized to produce financial statements, lead schedules, and allows us to perform trend analysis utilizing our clients’ trial balances. ©2018 CliftonLarsonAllen LLP | 17  A Program Generator (APG) – In order to provide a uniform approach to all engagements, the firm requires the use of APG, a software program custom-written for CLA. This software package allows the tailoring of procedures, based on the requirements of your engagement. We have developed a customized CLA audit program, which effectively makes our audit processes paperless and will enhance our present electronic practices. In an audit engagement, the primary use of APG is to take a standard audit program and modify, add, and delete procedures to create a program that has been specifically tailored to meet the needs of your engagement. Once tailored, the document can be completed electronically. Specific reports in addition to the basic program are generated to accommodate planning and review of your engagement. APG is an example of a technology tool that is designed to promote audit efficiencies. This software produces an industry-specific base program that is intended to encourage more thoughtful and specific tailoring. For an engagement to be effective in dealing with the risk of errors and efficient in avoiding riskless work, the engagement team will create a plan – the program – that contains the steps necessary to accomplish the goals of your engagement. Using APG is viewed as a thinking process, not just a documentation process.  Client Portal – In addition to secure file transfer, clients can take advantage of a secure document portal to easily share documents and store files. This tool provides anytime, anywhere access to uploaded tax returns, financial statements and more from anywhere you have an Internet connection. Clients and CLA professionals can share and store confidential files in a secure environment. The portal has capacity for both long-term and transient file storage and provides access to all your documents in one place.  LeapFILE and Secure File Transfer Protocol – CLA is committed to keeping client and member data secure. We utilize LeapFILE, a secure file transfer protocol (SFTP) software program, to receive and send encrypted files. LeapFILE allows us to transfer files to and receive files from our clients in a secure manner and keeps files with sensitive data out of our email boxes and hard drives. ©2018 CliftonLarsonAllen LLP | 18 Detailed Time Line for Completion of the Project Our project management methodology results in a client service plan that provides for regular, formal communication with the entire management team and allows us to be responsive to your needs. The schedule allows for input from your personnel to make certain that the services are completed based on your requirements. The plan may also be amended during the year based on input from the Clerk's Finance, the Board's Grant Manager, and management of each Constitutional Officer. Please see the below chart for the estimated time frame for the September 30 audit relating to each segment of this engagement: Time Line for Completion of Project Segment Activity Target Date J A S O N D J F M 1 Audit kickoff meetings with designated representatives of the BCC and each Constitutional Officer. Upon execution of the contract for 2018 and prior to May 15th in subsequent years 1 & 2 Obtain an understanding of the internal control environment, complete our risk assessment and develop our audit plan. Perform interim testing. Begin Single Audit Testing. August and September for 2018 (June – September for subsequent years) 3 Complete year-end fieldwork for the Constitutional Officers/Hold exit interviews. Oct. 30 – December 15 3 Complete all fieldwork for Board of County Commissioners including the single audit. Dec. 15 – January 30 4 Provide comments on draft financial statements and discuss findings (if any). January 4 Final review of comprehensive annual financial report. Conduct exit conference. February 4 Provide final reports. Final review of financial statements, conduct exit conferences February 4 Present the CAFR to the Board of County Commissioners in conjunction with the Clerk of the Circuit Court. By the last Board meeting in March Note - exact dates for the activities noted above will be discussed with County staff ©2018 CliftonLarsonAllen LLP | 19 Business Plan/Report Example As we are the current provider of audit services for Collier County, the County is familiar with our business plan/report example. As such we have provided the link to Collier’s County 2017 CAFR. Additionally, we have provided the link to Lee County’s CAFR as an additional example of our reports. Collier County, FL CAFR: https://www.collierclerk.com/images/resource-library/pdf/cafr- reports/2017%20CAFR%20Report.pdf Lee County, FL CAFR: https://www.leeclerk.org/Home/ShowDocument?id=5177 Additionally, copies of these CAFRs have been uploaded as attachments to our proposal submission on BidSync. ©2018 CliftonLarsonAllen LLP | 20 EVALUATION CRITERIA NO. 4: COST OF SERVICES TO THE COUNTY Annual Total Cost and Estimated Calendar Day Duration Our fees are based on the timely delivery of services provided, the experience of personnel assigned to the engagement, and our commitment to meeting your deadlines. CLA understands the importance of providing our clients with value-added approaches. We propose to provide routine, proactive quarterly meetings — as part of our fee — that will allow us to review and discuss with you the impact of new accounting issues, as well as any other business issues you are facing and how they should be handled. This level and frequency of interaction will no doubt enable CLA to help you tackle challenges as they come up, and take full advantage of every opportunity that presents itself. Financial Statement Audit 2018 2019 2020 Project Phase Estimated Calendar Duration Projected Hours Projected Hours Projected Hours PHASE 1 - Planning & Strategy July/August 660 660 660 PHASE 2 - Systems Evaluation August 240 240 240 PHASE 3 - Testing & Analysis Nov/Dec 1,200 1,200 1,200 PHASE 4 - Reporting & Follow- Up Nov-Feb 300 300 300 Single Audit 2018 2019 2020 Project Phase Estimated Calendar Duration Projected Hours Projected Hours Projected Hours Phase 1 - Risk Assessment & Planning August 80 80 80 Phase 2 - Major Program Testing August and December/January 500 500 500 Phase 3 - Final Assessment & Reporting January 20 20 20 Total Hours 3,000 3,000 3,000 Financial Statements and Single Audit Total Annual Costs $350,000 $357,000 $364,000 We have found over the years that our clients don’t like fee surprises. Neither do we. We commit to you, as we do all of our clients, that:  We will be available for brief routine questions at no additional charge, a welcome investment in an on- going relationship.  Any additional charges not discussed in this proposal will be mutually agreed upon up front.  We will always be candid and fair in our fee discussions, and we will avoid surprises. ©2018 CliftonLarsonAllen LLP | 21 Fee Considerations The fee proposal is based on the following:  The County personnel will provide assistance periodically throughout the year and during the assurance fieldwork with regard to account analysis and provision of year-end account reconciliation workpapers and schedules.  Satisfactory completion of our firm’s normal client acceptance procedures.  Professional standards and regulations currently in effect. We reserve the right to modify your proposed fee if professional standards or regulations change for any engagement period.  No significant changes in the operations of the County subsequent to the date of this proposal. Ongoing Consultation We do not anticipate the County will receive additional billings related to the annual audit procedures, as we anticipate cooperation from staff and receipt of information for timely completion of your audit. It is also our policy not to bill you for routine telephone calls. Our quoted fee includes routine general consultation throughout the year, however, if you seek a written opinion, or if the issue requires us to perform research, we will bill you at our standard rates for these services. We will discuss these fees with you before we conduct our work. We have a 24-48 hour response policy to return calls/emails from your supervisory committee, board, or management to provide effective and timely communication. CLA’s personnel are always available to provide assistance by telephone without additional cost to you. If the person you need to talk to is not available at the time you call, we will contact him/her and have him/her get back to you. We have a number of qualified principals on our staff that can provide you with timely and competent assistance. Additionally, in order to provide the most direct access to your team, we will provide the cell phone numbers of your engagement principals and audit managers and directors upon acceptance of our proposal. ©2018 CliftonLarsonAllen LLP | 22 Schedule of Values and Deliverables Task/Timeframe Description Cost Completion Task 1 July-August Meet with executives and financial management to co-develop expectations. Cond uct planning, meetings, develop detailed audit plan. Attend Audit Committee Meeting, begin interim fieldwork (understanding and testing of internal controls and systems). Begin Single Audit planning and testing. $40,000 Upon completion of all items associated with Task 1. Task 2 November Significant com pletion of control testing, risk assessments and audit planning. Constitutional Officer General Ledgers provided to the auditors. Begin performance of substantive testing of account balances. $70,000 Upon completion of all items associated with Task 2. Task 3 November - December Significant completion of fieldwork of Constitutional Officers. Review of Constitutional Officer Financial Statements and conduct exit interviews on Constitutional Statements December 1 -15. Begin performance of substantive testing of accou nt balances - Board of County Commissioners. Continue Single Audit Testing $100,000 Upon completion of all items associated with Task 3. Task 4 January Board financial statement audit and Single Audit significantly complete. The Clerk of Courts Finance and Accounting Department oversees preparation of draft financial statements, notes and statistical data. First draft of financial statements to auditors by January 22nd. First round of comments on initial review due by January 29th. Second draft to auditors one week after receipt of initial review comments. $100,000 Upon completion of all items associated with Task 4. Task 5 February - March Issue opinion on Comprehensive Annual Financial Report (CAFR), including all Constitutional Officer reports. Issue all other req uired reports, including Single Audit and Data Collection Form. Present CAFR, and results, to the Board of County Commissioners. $40,000 Upon completion of all items associated with Task 5. ©2018 CliftonLarsonAllen LLP | 23 Proposed Hourly Fee Schedule Below, we have provided our proposed hourly fee schedule of principals and staff members for this engagement. Engagement Staff Hourly Fee 2018 2019 2020 Principal $ 280 $ 285 $ 290 Manager/Director $ 255 $ 260 $ 265 Senior Associate $ 200 $ 205 $ 210 Staff $ 150 $ 155 $ 160 At CLA, it’s more than just getting the job done. ©2018 CliftonLarsonAllen LLP | 24 EVALUATION CRITERIA NO. 5: EXPERIENCE AND CAPACITY OF THE FIRM CLA delivers integrated wealth advisory, outsourcing, audit, tax, and consulting services to help clients succeed professionally and personally. Our broad professional services allow us to serve clients more completely — from startup to succession and beyond. Our professionals are immersed in the industries they serve and have specialized knowledge of their operating and regulatory environments. With more than 5,500 people, more than 110 U.S. locations, and a global affiliation, we bring a wide array of approaches to help clients in all markets, foreign and domestic. Qualifications and Experience CLA is a leader in the state and local government industry, offering the credibility, reputation, and resources of a leading professional services firm — without sacrificing the small-firm touch. CLA has one of the largest governmental audit and consulting practices in the country, serving more than 2,100 governmental clients nationwide. Public sector clients represent approximately one-quarter of all firm-wide revenue, and each of the government services team members are thoroughly versed in the issues critical to complex governmental entities. We bring unsurpassed levels of technical excellence, commitment, and dedication to our clients, which have made us one of the most successful CPA firms serving governmental entities. Our strong reputation for serving state and local government units provides the County the confidence in their decision to select CLA as their professional service provider. Our professionals have deep, technical experience in serving governmental entities. As a CPA firm experienced in serving state and local units of government, we are very aware of the financial and legal compliance requirements that government officials are faced with daily. This creates complexities and service issues within a unique operational and regulatory environment. Because of our experience, we have become adept at providing our clients with insights in this environment not typical of other CPA firms. Any CPA firm can provide audit and accounting services, but few specialize in the area of accounting and auditing for local government entities like we do. The below Table 1 provides current related and relevant projects the engagement team has successfully worked on for similar local governmental entities. Position the County to provide effective and efficient governmental services to your constituents. WEALTH ADVISORY | OUTSOURCING | AUDIT, TAX, AND CONSULTING ©2018 CliftonLarsonAllen LLP | 25 Florida Counties Charlotte County Highlands County Citrus County Lee County Collier County Manatee County Desoto County Okeechobee County Glades County Pasco County Hardee County Pinellas County Hernando County Polk County Sarasota County Florida Municipalities City of Arcadia City of New Port Richey City of Avon Park Town of Redington Beach City of Cape Coral City of Safety Harbor City of Brooksville City of Sanibel City of Fort Myers City of Temple Terrace Town of Fort Myers Beach City of Winter Haven City of Moore Haven Other Florida Government Entities Avon Park Housing Authority Hillsborough Area Regional Transit Authority Bartow Housing Authority Hillsborough County Aviation Authority Captiva Island Fire Control Key West Housing Authority Central Florida Regional Planning Council Lake Wales Housing Authority Collier Mosquito Control Matlacha and Pine Island Fire Control Clearwater Downtown Development Board Moore Haven Mosquito Control District Delray Beach Housing Authority Naples Airport Authority Englewood Water Pasco County Housing Authority Estero Fire District Pinellas Construction Licensing Board Hardee County Industrial Development Auth. Pinellas County Planning Council Hardee County School Board Internal Funds Pinellas County Metropolitan Planning Organization Hardee Soil and Water District Pinellas Suncoast Transit Authority ©2018 CliftonLarsonAllen LLP | 26 Heartland Library Cooperative Polk Regional Water Cooperative Hendry County School District Internal Funds Sanibel Public Library Hernando County Housing Authority Sebring Airport Authority Highlands County Health Facility Authority South Fork Community Development District Highlands County Hospital District Tampa Bay Area Regional Transportation Authority CAFR Experience The Government Finance Officers Association (“GFOA”) Certificate of Achievement for Excellence in Financial Reporting is awarded to state and local governments that go beyond the minimum requirements of generally accepted accounting principles. It is awarded to state and local governments who produce a comprehensive annual financial report that evidences the spirit of transparency and full disclosure. Members of the GFOA staff and the GFOA Special Review Committee (SRC) review reports submitted to the CAFR program. CLA provides audit services to many entities that received the GFOA Certificate of Excellence in Financial Report. All of the procedures noted in our audit approach and our technical review of the CAFR are done to help the County prepare and publish the top product possible. Our managers and principals who review the CAFR have a strong understanding of the GFOA requirement for the certificate. We understand that this is a prestigious award for the County and a great accomplishment for the Finance and Accounting departments. We will review the GFOA comment letter for each CAFR and provide the County advice regarding the response to the GFOA reviewr’s comments. Our procedures with respect to the CAFR will be the review of the comments from GFOA on the prior year submission to determine they were adequately addressed, completion of the CAFR checklist, and review of the transmittal letter and statistical data to determine that information presented is reasonable and agrees with the information in the financial statements and management’s discussion and analysis (MD&A), where applicable. We understand the interrelationships of the many and varied components of a governmental entity’s financial statements, allowing us to quickly determine errors or problems with the financial statements. Our depth of knowledge and experience also allows us to assist the County with the preparation of the CAFR and improvement of the County’s financial statements. Our involvement with clients in the GFOA Certificate program helps to determine that we are on the leading edge of reporting trends and techniques. We have been engaged by various entities to review their statements for compliance with program requirements. We have aided clients in the early implementation of professional pronouncements and regularly provide our clients with updates on new pronouncements which will affect them and will do the same for the County. ©2018 CliftonLarsonAllen LLP | 27 Single Audit Experience CLA has become the national leader in providing audit, tax and many other financial services to government entities similar to the County. Our client portfolio of government and nonprofit organizations represents nearly half of the firm’s total revenues. You will benefit from CLA’s experience in this area. As outlined in the following table, CLA performs more single audits annually than any other firm in the nation. We audited more than $28.8 billion dollars in federal funds. The table below illustrates CLA’s experience in serving organizations that receive federal funds and demonstrates our firm’s dedication to serving nonprofits and governmental organizations: *The information for the firms above was pulled from the Federal Audit Clearinghouse for audits with fiscal year ends between January 1, 2016 – December 31, 2016. In the current environment of increased oversight, it is more important than ever to find qualified auditors who have significant experience with federal grants specific to the County and can enhance the quality of the County’s single audit. Therefore, the single audit will be performed by a team of individuals who are managed by personnel who specialize in single audits in accordance with OMB’s UG and who will offer both knowledge and quality for the County. As part of our quality control process, the single audit will be reviewed by a firm Designated Single Audit Reviewer. The AICPA clarified auditing standard, AU-C 935 “Compliance Audits” requires risk-based concepts to be used in all compliance audits including those performed in accordance with OMB UG. Our risk-based approach incorporates this guidance. The County needs an audit firm experienced in performing single audits and a familiarity with the specific programs in which you are involved. You will benefit from CLA’s experience in this area! ©2018 CliftonLarsonAllen LLP | 28 Successful Experience Working Together Below, we have provided recent engagements our team members have successfully worked on together. Client Name Services Provided Dates of Service Team Members Collier County, Florida Audit of financial statements in accordance with Government Auditing Standards; Uniform Grant Guidance and the Florida Single Audit Act; pre-issuance review of CAFR. 2013 - 2017 Martin Redovan, Amy Cooper, Sue Pagan, Brian Quinlin, Crystal Albiar, Michelle Coble, Madison Murray, Jim Barton Lee County, Florida Audit of financial statements in accordance with Government Auditing Standards; Uniform Grant Guidance and the Florida Single Audit Act; pre-issuance review of CAFR. 2014 - 2017 Martin Redovan, Chris Kessler, Brian Quinlin, Crystal Albiar, Michelle Coble, Jim Barton City of Fort Myers, Florida Audit of financial statements in accordance with Government Auditing Standards; Uniform Grant Guidance and the Florida Single Audit Act; pre-issuance review of CAFR. 2015 - 2017 Martin Redovan, Sue Pagan, Crystal Albiar, Michelle Coble, Jim Barton Reference Forms We recognize that quality of service, relevant experience, and depth of resources will be key factors as you prepare to select a firm to serve your audit needs. We encourage you to contact our references for a first-hand account of our ability to meet contract objectives, adhere to deliverable schedules, and provide added value. We are confident that our references will attest to the competence, professionalism, and client service provided by CLA. We are pleased to provide you on the following pages references who can describe their experience in greater detail. Reference Questionnaire Solicitation: 18-7387 Reference Questionnaire for: CliftonLarsonAllen LLP (Name of Company Requesting Reference Information) Martin A. Redovan, CPA (Name of Individuals Requesting Reference Information) Name:Terry Mallow (Evaluator completing reference questionnaire) Company:Lee County, Florida (Evaluator’s Company completing reference) Email: TMallow@LeeClerk.Org FAX: n/a Telephone: (239) 533-2184 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously per formed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firm/indivdiual again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored “0.” (Please note, references from Collier County staff will not be accepted.) Project Description: Annual Audit Completion Date: 3 years, 2 one-year renewals covering Fiscal Years 2013-2018 Project Budget: _______________________________ Project Number of Days: _______________________ Item Citeria Score 1 Ability to manage the project costs (minimize change orders to scope). 10 2 Ability to maintain project schedule (complete on-time or early). 10 3 Quality of work. 10 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 10 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 10 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 100 - Reference Questionnaire Solicitation: 18-7387 Reference Questionnaire for: CliftonLarsonAllen, LLP (Name of Company Requesting Reference Information) Martin A. Redovan, CPA (Name of Individuals Requesting Reference Information) Name: Dee Dee Beaver, CPA, CGFO, Director (Evaluator completing reference questionnaire) Company: Polk County, Florida (Evaluator’s Company completing reference) Email: DeeDeeBeaver@polk-county.net FAX: Telephone: 863-534-6508 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has listed you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsa tisfied (and would never hire the firm/indivdiual again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored “0.” (Please note, references from Collier County staff will not be accepted.) Project Description: Audit (including constituional officers) Completion Date: March 31, 2018 Project Budget: $264,160 for FY2017 Project Number of Days: August through March Item Citeria Score 1 Ability to manage the project costs (minimize change orders to scope). 10 2 Ability to maintain project schedule (complete on-time or early). 9 3 Quality of work. 9 4 Quality of consultative advice provided on the project. 10 5 Professionalism and ability to manage personnel. 9 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 9 7 Ability to verbally communicate and document information clearly and succinctly. 10 8 Abiltity to manage risks and unexpected project circumstances. 10 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 10 10 Overall comfort level with hiring the company in the future (customer satisfaction). 10 TOTAL SCORE OF ALL ITEMS 96 Reference Questionnaire Solicitation: 18-7387 Reference Questionnaire for: CliftonLarsonAllen, LLP (Name of Company Requesting Reference Information) Martin A. Redovan, CPA (Name of Individuals Requesting Reference Information) Name:Nicole Jovanovski (Evaluator completing reference questionnaire) Company:Sarasota County Clerk & Comptroller’s Office (Evaluator’s Company completing reference) Email: njovanov@scgov.net FAX: 941-861-5492 Telephone: 941-861-5184 Collier County has implemented a process that collects reference information on firms and their key personnel to be used in the selection of firms to perform this project. The Name of the Company listed in the Subject above has l isted you as a client for which they have previously performed work. Please complete the survey. Please rate each criteria to the best of your knowledge on a scale of 1 to 10, with 10 representing that you were very satisifed (and would hire the firm/individual again) and 1 representing that you were very unsatisfied (and would never hire the firm/indivdiual again). If you do not have sufficient knowledge of past performance in a particular area, leave it blank and the item or form will be scored “0.” (Please note, references from Collier County staff will not be accepted.) Project Description: Annual Financial Audit Completion Date: March 2, 2018 Project Budget: $361,850 (for both firms) Project Number of Days: Interim began as of July 31st Item Citeria Score 1 Ability to manage the project costs (minimize change orders to scope). 8 2 Ability to maintain project schedule (complete on-time or early). 8 3 Quality of work. 9 4 Quality of consultative advice provided on the project. 9 5 Professionalism and ability to manage personnel. 9 6 Project administration (completed documents, final invoice, final product turnover; invoices; manuals or going forward documentation, etc.) 9 7 Ability to verbally communicate and document information clearly and succinctly. 9 8 Abiltity to manage risks and unexpected project circumstances. 8 9 Ability to follow contract documents, policies, procedures, rules, regulations, etc. 9 10 Overall comfort level with hiring the company in the future (customer satisfaction). 9 TOTAL SCORE OF ALL ITEMS 87 ©2018 CliftonLarsonAllen LLP | 32 EVALUATION CRITERIA NO. 6: SPECIALIZED EXPERTISE OF TEAM MEMBERS Proposed Contract Team and Roles An experienced engagement team has been aligned to provide you with the most value for your organization. The team members have performed numerous engagements of this nature and will commit the resources necessary to provide top quality service throughout the engagement. Following are our proposed management team members: , Clerk of the Circuit Couirt Martin Redovan Engagement Principal Chris Kessler Engagement Manager Sue Pagan Engagement Manager Crystal Albiar Senior Associate Michelle Coble Senior Associate Brian Quinlin Engagement Manager Amy Cooper Engagement Principal Madison Murray Senior Associate James "Jim" Barton Information Technology Manager ©2018 CliftonLarsonAllen LLP | 33 Engagement Team Member Role Martin ”Marty” Redovan, CPA Engagement Principal – Marty will have overall engagement responsibility including planning the engagement, developing the audit approach, supervising staff, and maintaining client contact throughout the engagement and throughout the year. Marty is responsible for total client satisfaction through the deployment of all required resources and continuo us communication with management and the engagement team. Sue Pagan, CPA Engagement Manager – Sue will act as the lead manager on the engagement. In this role, Sue will assist the engagement principal with planning the engagement and performing complex audit areas. She will perform a technical review of all work performed and is responsible for the review of comprehensive annual financial report and all related reports. Chris Kessler, CPA Engagement Manager – Chris will assist Amy, Sue and Brian with the management of the audits of the BOCC and the Constitutional Officers. Chris has spent his entire career serving a number of complex governmental entities across the firm and will be joining CLA’s Southwest Florida State and Local Government Services team on a permanent basis in the summer of 2018. Chris’s experience will be a valuable resource for the County and bring an additional perspective to the audit team. Amy Cooper, CPA Engagement Principal – As in the past, Amy will manage the audits of the Property Appraiser and Tax Collector. In this role, Amy will assist Marty with planning the engagement. She will perform a technical review of all work performed and is responsible for the review of the financial statements and all related reports. Brian Quinlin, CPA Engagement Manager – Brian will be the manager for the Clerk’s audit engagement. He will assist the engagement principal with planning the engagement and performing complex audit areas. Brian will perform a technical review of all work performed and is responsible for the review of the financial statements and all related reports. Michelle Coble, Crystal Albiar, CPA, and Madison Murray Senior Associates – Michelle, Crystal and Madison will be responsible for the day to day audit activities, including the supervision of all staff assigned. Michelle will be responsible for the Board, Clerk and Supervisor of Elections audits. Crystal will be the senior for the Sheriff audit and the Single Audit. Madison will be the senior for the Property Appr aiser and Tax Collector. Michelle, Crystal and Madison are familiar with the information systems utilized for their assigned areas are capable of conducting research using the inquiry access provided. James “Jim” W. Barton, III, CISA, PCI-QSA, CCSFP Information Technology Manager – Jim Barton will assist the audit team in documenting and evaluating general computer controls and IT application controls. Jim will work in conjunction with your CLA information technology team to efficiently identify areas of focus to direct our information technology procedures. Additional Staff – We will assign additional staff to your engagement based on your needs and their experience providing services to state and local governments. Ideally, the staff assigned to your team will be from our Naples and Fort Myers offices with state and local government as their industry focus at CLA. Detailed resumes are available on the following pages of this proposal. ©2018 CliftonLarsonAllen LLP | 34 Continuity of Service We are committed to providing continuity throughout this engagement. It is our policy to maintain the same staff throughout an engagement, providing maximum efficiency and keeping the learning curve low. We are also flexible in exploring alternative strategies to non-mandatory rotation policies. In any business, however, turnover is inevitable. When it happens, we will provide summaries of suggested replacements and will discuss re-assignments prior to finalizing. We have an adequate number of qualified staff members to provide the County with top service over the term of the engagement. CLA is committed to maintaining high staff retention rates, which we believe are a strong indicator of service quality. Continuity results in increased efficiency and quality because staff assigned to the engagement will not have to go through a “learning curve” with annual engagements or each new project. Client staff spends less time orienting the engagement team, and more time working toward goals. With a solid, steady e ngagement team, each year brings the additional benefits of trust and familiarity. High retention rates also indicate that our staff members have the resources they need to perform their tasks and maintain a positive work/life balance. ©2018 CliftonLarsonAllen LLP | 35 Brief Resumes of Proposed Project Team Members Martin Redovan, CPA CliftonLarsonAllen LLP Principal Profile Marty has over 37 years of experience serving Florida government clients and he serves as the engagement principal and quality review principal for a wide range of large, complex governmental audit engagements. He has extensive experience specializing in government audits and assisting clients in increasing the efficiency of their operations. Within CLA, Marty is one of the principals responsible for client relationships, work quality, and staff development. He serves on the public sector leadership team for the Southeastern region. He is also one of the firm experts in local government auditing. Marty brings innovative ideas coupled with practical experience to the firm's governmental clients so they can stay apprised of new accounting pronouncements, state laws, fiscal trends and best practices. His personal approach to client service includes frequent communication with his clients and a genuine concern for their best interests. They know that whatever the problem, Marty will be there to get them through. Technical/Client Experience During his career, Marty has provided audit and accounting services to: Charlotte County* City of Moore Haven Collier County* Town of Fort Myers Beach Lee County* City of Naples Airport Authority* Manatee County* Captiva Fire Control District Sarasota County* Englewood Water District Desoto County Estero Fire Rescue District Glades County Hillsborough County Aviation Authority Hardee County Iona McGregor Fire Protection and Rescue City of Cape Coral* Matlacha Pine/Island Fire Control District City of Dunedin* Sanibel Fire & Rescue District City of Punta Gorda* Southwest Florida Expressway Authority City of Sanibel* Upper Captiva Fire Control District City of Bonita Springs Many other Special Districts and Authorities City of Everglades City *Receives the GFOA Certificate of Achievement for Excellence in Financial Reporting Education/Professional Involvement  Bachelor of business administration with a degree in accounting, Stetson University  Florida Government Finance Officers Association  American Institute of Certified Public Accountants  Florida Institute of Certified Public Accountants  Government Finance Officers Association  Certified Public Accountant licensed by the State of Florida  Attends a minimum of 40 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, relating to the 120 hours for three-year requirement. Every two years, a minimum of 24 hours of CPE specifically related to Yellow Book requirements is completed. ©2018 CliftonLarsonAllen LLP | 36 Amy C. Cooper, CPA CliftonLarsonAllen LLP Principal Profile Amy is a principal in the CliftonLarsonAllen public sector group. She has more than 30 years of auditing, accounting, and tax experience. Amy has also served as a member of CliftonLarsonAllen’s internal quality review team. Client Experience  State and local government  Charter Schools  Nonprofit entities  Condominium/homeowner associations  Small business accounting and taxation Education/Professional Involvement  Bachelor of arts in accounting from the University of South Florida, Tampa, Florida  American Institute of Certified Public Accountants  Certified Public Accountant in the state of Florida  Florida Institute of Certified Public Accountants (FICPA)  Meets/exceeds the continuing education requirements of the Florida Department of Business and Professional Regulation and Government Auditing Standards  Attends a minimum of 40 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, relating to the 120 hours for three-year requirement. Every two years, a minimum of 24 hours of CPE specifically related to Yellow Book requirements is completed. ©2018 CliftonLarsonAllen LLP | 37 Sue Pagan, CPA CliftonLarsonAllen LLP Manager Profile Sue is an audit engagement director with CliftonLarsonAllen. Sue has more than 21 years of auditing experience in the public sector serving Florida government clients. During this time, she has served 6 Florida counties, 12 cities, 3 school districts, and several special districts. Experience Serving Clients Sue has over 21 years of experience in public accounting servicing local governments, many of which require federal and state single audits. During her career, she has provided audit and accounting services to: Collier County * Polk County* Sarasota County * Pinellas County * Pasco County Hernando County * City of Fort Myers City of Cape Coral City of Clearwater City of St. Petersburg City of Winterhaven City of Safety Harbor City of New Port Richey City of Largo City of Pinellas Park City of Madeira Beach City of Tarpon Springs Town of Redington Beach Hillsborough County School District * Pinellas County School District * Clearwater Downtown Development Board Juvenile Welfare Board Virgin Islands Water and Power Authority Pinellas County Licensing Board Pinellas Suncoast Transit Authority (PSTA) Tampa Bay Estuary Program TB Advanced Manufacturing Skills Initiative Pinellas County Planning Council Hillsborough Area Regional Transit Authority Tampa Bay Area Regional Transportation Tampa Bay Regional Planning Council *Also worked on Constitutional Officers Education/Professional Involvement Bachelor of science in accounting from University of South Florida, Tampa, Florida Certified Public Accountant in the State of Florida American Institute of Certified Public Accountants Florida Government Finance Officers Association (FGFOA) Attends a minimum of 40 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, relating to the 120 hours for three-year requirement. Every two years, a minimum of 24 hours of CPE specifically related to Yellow Book requirements is completed. ©2018 CliftonLarsonAllen LLP | 38 Brian A. Quinlin, CPA, MBA CliftonLarsonAllen LLP Manager Profile Brian is an engagement director with CLA’s public sector group. He has over 13 years of experience serving Florida nonprofit and government clients. The majority of the larger governments served by him require federal and /or state single audits. Technical/Client Experience Brian has over 13 years of public accounting experience and over eight years of supervisory experience. During his career, Brian has provided services for the following government engagements: Highlands County Okeechobee County Collier County Clerk of the Circuit Court Lee County Clerk of the Circuit Court Hardee County Polk County Tax Collector Glades County Clerk of Court Town of Lake Placid City of Avon Park Heartland Library Cooperative Hardee County Schools Internal Funds Jefferson County Housing Authority Highlands County Soil & Water Conservation Lake Wales Housing Authority Highlands County Health Facilities Authority Housing Authority of Avon Park Monroe County Housing Authority Housing Authority of Bartow Housing Authority of the City of Key West Arcadia Housing Authority Housing Authority of the City of Lakeland Delray Beach Housing Authority Housing Authority of the City of Sarasota Winter Haven Housing Authority Education/Professional Involvement •Bachelor of Business Administration degree, Morehead State University •Master’s in Business Administration, Nova Southeastern University •Certified Public Accountant in the State of Florida •American Institute of Certified Public Accountants •Florida Institute of Certified Public Accountants •Attends a minimum of 40 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, relating to the 120 hours for three-year requirement. Every two years, a minimum of 24 hours of CPE specifically related to Yellow Book requirements is completed. ©2018 CliftonLarsonAllen LLP | 39 Christopher (Chris) Kessler, CPA CliftonLarsonAllen LLP Manager Profile Chris has over 10 years of experience with auditing and accounting services. He specializes in governmental auditing and accounting with an emphasis on state and local government agencies. Chris manages, plans, and performs audits and accounting services for numerous state and local government audit engagements typically requiring single audits to be performed in accordance with OMB UG. Chris has extensive experience with assisting governmental clients in obtaining and retaining the GFOA Certificate of Achievement for Excellence in Financial Reporting award and has provided risk assessment consulting services to governmental clients. Due to his extensive experience, Chris is designated at CLA as a governmental auditing specialist. He is charged with understanding and applying the most recent GASB, Yellow Book, and other auditing standards, and is well known throughout the firm for his responsiveness, dedication to detail, and ability to communicate findings in an understandable manner. Technical Experience  Has provided audit and accounting services for the following state and local government entities: Lee County, Florida Lee County Port Authority Village of Estero, Florida Upper Captiva Fire Control District Matlacha/Pine Island Fire Control District Buncombe County, North Carolina Montgomery County, Maryland New Castle County, Delaware City of Asheville, North Carolina State of South Carolina State of Delaware State of Vermont South Carolina Retirement System North Carolina Office of the State Treasurer South Carolina Public Employee Benefit Authority Charleston County School District Anne Arundel County Board of Education Baltimore City Public Schools Washington Metropolitan Airport Authority Education/Professional Involvement  Bachelor of science in accounting and finance from University of South Carolina, Columbia, South Carolina  Certified Public Accountant  American Institute of Certified Public Accountants  Government Finance Officers Association  South Carolina Government Finance Officers Association • South Carolina Association of Certified Public Accountants • Attends a minimum of 40 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, relating to the 120 hours for three-year requirement. Every two years, a minimum of 24 hours of CPE specifically related to Yellow Book requirements is completed. Speaking Engagements  Chris is an active speaker on governmental accounting and auditing issues throughout the country. Chris frequently speaks at local GFOA and AGA conferences, as well as internally for CLA. ©2018 CliftonLarsonAllen LLP | 40 James (Jim) W. Barton, III, CISA, PCI-QSA, CCSFP CliftonLarsonAllen LLP Information Technology Manager Profile Jim is a manager and Information Security Analyst within the Information Security Services Group (ISSG) at CLA. Jim has worked in the IT profession for more than 15 years and has been involved in network management and end-user support with experience covering project management, business management and service delivery. Technical Experience Jim has consulted on a wide range of projects from system selection to the design and installation of local and wide area networks. He has served as an IT Director for a regional CPA firm. Since joining CLA, Jim has performed IT general controls, SSAE16 IT testing, external penetration testing, internal vulnerability assessments, and PCI compliance assessments. Education/Professional Involvement  Computer Electronics and Networking Technology Diploma, Florida Career Institute  Certified Information Systems Auditor (CISA)  PCI Qualified Security Assessor (PCI-QSA)  Certified CSF Practitioner (CCSFP)  Member of West Florida Chapter of ISACA, a worldwide association of IS professionals ©2018 CliftonLarsonAllen LLP | 41 Michelle M. Coble CliftonLarsonAllen LLP Senior Associate Profile Michelle is an audit senior in the Fort Myers, Florida office. She has worked in public accounting for 12 years and has been with the firm since 2013. Michelle works extensively in the firm’s State and Local Government Group. Client Experience  State and local government  Nonprofit entities  Employee benefit plans  Construction contractors Additionally, Michelle has worked with the following clients: Collier County Glades County Lee County City of Fort Myers City of Sanibel Captiva Fire Control District Town of Fort Myers Beach Matlacha/Pine Island Fire Control District Education/professional involvement  Bachelor of science in accounting with a minor in human resources from Indiana University  Attends a minimum of 40 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, relating to the 120 hours for three-year requirement. Every two years, a minimum of 24 hours of CPE specifically related to Yellow Book requirements is completed. ©2018 CliftonLarsonAllen LLP | 42 Crystal Albiar, CPA CliftonLarsonAllen LLP Senior Associate Profile Crystal is a senior in the Assurance Services Group at CliftonLarsonAllen. Crystal has worked in public accounting since 2002, focusing primarily on auditing. She has served many government and nonprofit entities and has performed federal and state single audits for her government and nonprofit clients including experience in uniform grant guidance. Client Experience Crystal has served many government and nonprofit entities and has performed federal and state single audits for government and nonprofit clients, including the following: Education/Professional Involvement Bachelor of science in business administration with an option in accounting from Oregon State University, Corvallis, Oregon Certified Public Accountant licensed by the state of Oregon (2/2004) Certified Public Accountant in the State of Florida Licensed Municipal Auditor by the state of Oregon Attends a minimum of 40 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, relating to the 120 hours for three-year requirement. Every two years, a minimum of 24 hours of CPE specifically related to Yellow Book requirements is completed. Collier County Lee County Glades County City of Fort Myers City of Cape Coral City of Bandon, Oregon City of Coquille, Oregon City of Fairview, Oregon City of Hillsboro, Oregon City of Madras, Oregon City of McMinnville, Oregon Senior Friendship Centers, Inc. Single Audit City of Redmond Oregon City of Sisters, Oregon City of Waldort, Oregon Klamath County Rural Fire District #1 Langlois Rural Fire District Lincoln City, Oregon Port of Port Orford Port Orford Library District Mt. Hood Community College Bandon Rural Fire District Charleston Rural Fire District Southwestern Oregon Community College ©2018 CliftonLarsonAllen LLP | 43 Madison Murray CliftonLarsonAllen LLP Senior Associate Profile Madison Murray is an audit senior in the Naples, Florida office with over 4 years of experience in the profession and with CliftonLarsonAllen. Industry & Client Experience State and local government Nonprofit entities Individual & Corporate Taxation During her career, Madison has provided audit and accounting services to the following governmental clients: Collier County Property Appraiser Collier County Tax Collector Englewood Water District Education/Professional Involvement Bachelor of science in accounting from Florida Gulf Coast University, Estero, FL American Institute of Certified Public Accountants (AICPA), Member Florida Institute of Certified Public Accountants (FICPA), Member Attends a minimum of 40 hours annually of continuing professional education classes, including a minimum of 8 hours of audit and accounting classes, relating to the 120 hours for three-year requirement. Every two years, a minimum of 24 hours of CPE specifically related to Yellow Book requirements is completed. ©2018 CliftonLarsonAllen LLP | 44 Resumes of Subcontractors and Letter of Intent As previously stated, although we are not a small or minority-owned business, we are committed to utilizing the services of such firms whenever possible. This includes using small and/or minority-owned businesses as subcontractors, as well as vendors. For this engagement, however, we do not foresee using any subcontractors. CLA strives to fill its professional positions with the best and most experienced accountants regardless of race or gender. ©2018 CliftonLarsonAllen LLP | 45 EVALUATION CRITERIA NO. 7: LOCAL VENDOR PREFERENCE ©2018 CliftonLarsonAllen LLP | 46 ADDITIONAL INFORMATION Innovation Our clients are hungry for more than routine solutions and standard services; they are seeking out businesses who know them and can help them with a wide variety of business issues. To meet the changing needs of our clients, CLA continues to innovate and reinvent ourselves with a mindset toward innovation. Innovation is being advanced in all practice areas whether it be through automating tasks previously performed manually, emphasizing data analytics, or implementing new technologies. This ongoing focus challenges us to execute first-class compliance work, leverage all the technology available to us, and better demonstrate the strategic advantage of deep industry specialization. Transforming our processes is ambitious. However, these efforts improve the quality and impact of our practice, greatly enhance our efficiency, create more rewarding work experiences for our staff, and ultimately provide a better experience for our clients. In short, CLA commits to each of our clients and to each other to:  Bring forth the full breadth of our resources and capabilities to our clients  Do it right the first time – on time and on budget  Deliver with a can-do attitude and spirit of innovation Industry Participation and Thought Leadership CLA actively supports industry education as a thought leader and industry speaker. Our firm focuses on supporting the educational needs of the industry through nationally sponsored trade events. Our team of governmental professionals is sought after, both as educators and as experienced speakers who are invited to speak and teach at major professional events by leading trade associations. Participation in Quality Improvement Programs We work with governmental entities across the country, and our exposure to the circumstances and issues that surround your industry will allow us to serve you with unparalleled knowledge and insight. We understand the specific needs and challenges of the public sector and have been serving clients similar to the County for decades. We are actively involved in and/or are members of the following professional organizations:  American Institute of Certified Public Accountants (AICPA)  AICPA’s State and Local Government Expert Panel  AICPA’s Government Audit Quality Center (GAQC)  Government Finance Officers Association (GFOA)  Special Review Committee for the GFOA’s  Certificate of Achievement for Excellence in Financial Reporting (Certificate) Program  AICPA Single Audit Quality Task Force  Association of Government Accountants Our participation/membership in the aforementioned professional organizations, combined with various other technical services we subscribe to, allows use to be at the forefront of change in the government environment. ©2018 CliftonLarsonAllen LLP | 47 We take seriously our responsibility for staying current with new accounting pronouncements, auditing standards, other professional standards and laws and regulations. Thought Leadership and Industry Information CLA goes beyond the numbers and offers value-added strategies. You will hear from us throughout the year. We send periodic email publications and host webcasts to keep clients and friends of the firm informed of relevant industry updates. Below are just a few of the resources we offer:  State and Local Government Perspectives — A periodic e-newsletter providing news, tips, strategies, insights, and updates on regulatory and industry issues as well as subjects relevant to government entities.  National Industry Webcasts — Web-based seminars designed to provide information on upcoming industry trends, accounting, tax, risk, and other issues in either the accounting or public sector industry. Many of webcasts are complimentary and some provide attendees with an opportunity to obtain CPE credit.  Speaking Engagements and Workshops — We share our industry knowledge and experience by presenting at national, regional, and local events, as well as hosting our own industry events in various markets. We provide quality insight and education in the areas of improving profitability, reducing risk, building business value, and planning for succession.  Recent Industry Articles — In addition to our direct participation with national organizations, CLA has had numerous articles published by our public sector industry professionals.  In-Person Events — Annual economic, capital markets, and tax outlook seminars are presented by local professionals and CliftonLarsonAllen Wealth Advisors, LLC investment committee members. Investment Advisory Services offered through CliftonLarsonAllen Wealth Advisors, LLC, an SEC-registered investment advisor. You can register for our webcasts and find our extensive resource library on our website, CLAconnect.com. GASB Insight Potentially Affecting Current and Future Audits Our significant knowledge of technical issues and GASB pronouncements will be especially beneficial to the County. The below are recent issues and pronouncements which may have a future impact on the audits and financial statement of the County. We will proactively work with the County to address the reporting and auditing impact of each pronouncement or issue in advance of the implementation date. GASB Pronouncements GASB – Recent and Pending Description of Statement Potential Impact on the County GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions - This statement establishes new accounting and financial reporting requirements for governments whose employees are provided with OPEB, as well as for certain non-employer governments that have a legal obligation to provide financial support for OPEB provided to the employees of other entities. This statement is effective for fiscal years beginning after June 15, 2017 and will have an impact on the County similar to that of GASB 68, requiring recording of the amount of the net unfunded actuarially computed OPEB liability. ©2018 CliftonLarsonAllen LLP | 48 GASB – Recent and Pending Description of Statement Potential Impact on the County GASB Statement No. 82, Pension Issues – an amendment of GASB Statements No. 67, No. 68, and No. 73 - The objective of this statement is to address certain issues that have been raised with respect to Statements No. 67, Financial Reporting for Pension Plans, and No. 68, Accounting and Financial Reporting for Pensions. Specifically, this Statement addresses issues regarding (1) the presentation of payroll-related measures in required supplementary information, (2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments made by employers to satisfy employee (plan member) contribution requirements. The Requirements of this statement are effective for reporting periods beginning after June 15, 2017. There should be minimal impact on the County’s financial statements or disclosures, therein. GASB Statement No. 83, Certain Asset Retirement Obligations – The objective of this statement is to provide guidance in recording and disclosing liabilities related to retirement obligations for certain tangible capital assets which have been permanently removed from service. The Requirements of this statement are effective for reporting periods beginning after June 15, 2018. This statement will impact disclosures in the County’s financial statements to the extent of the occurrence of these types of capital asset retirement obligations. GASB Statement No. 84, Fiduciary Activities – The objective of this Statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. It provides criteria for identifying fiduciary activities, identifies four types of fiduciary funds and provides reporting guidance. The four fiduciary fund types are pension (and other employee benefit) trusts, investment trust funds, private-purpose trust funds and custodial funds. The Requirements of this statement are effective for reporting periods beginning after December 15, 2018. Implementation of this statement will require a change in terminology from agency funds to custodial funds GASB Statement No. 85, Omnibus– The objective of this statement is to provide guidance on certain practice issues which have arisen in the past year. Specifically, it addresses certain issues related to investment classification, component unit issues, classification of real estate held by insurance entities, and certain OPEB issues. The Requirements of this statement are effective for reporting periods beginning after June 15, 2017. Based on our preliminary review of this Statement, we do not believe it will impact your financial statements and related disclosures. GASB Statement No. 86, Certain Debt Extinguishment Issues – The primary objective of this Statement is to improve consistency in accounting and financial reporting for in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary assets acquired with only existing resources —resources other than the proceeds of refunding debt—are placed in an irrevocable trust for the sole purpose of extinguishing debt. This Statement also improves accounting and financial reporting for prepaid insurance on debt that is extinguished and notes to financial statements for debt that is defeased in substance. The Requirements of this statement are effective for reporting periods beginning after June 15, 2017. Based on our preliminary review of this Statement, we do not believe it will impact your financial statements and related disclosures. ©2018 CliftonLarsonAllen LLP | 49 GASB – Recent and Pending Description of Statement Potential Impact on the County GASB Statement No. 87, Leases – The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of governments’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities. The Requirements of this statement are effective for reporting periods beginning after December 15, 2019. Based on our preliminary review of this Statement, the standard would require the County to record a liability and an intangible right-to-use lease asset for all non- current (greater than 12 months) leases. There would be little or no change in existing capital leases. The impact of recording the new liabilities on the County’s legal debt margins and coverage calculations would require review and discussion with the County legal, accounting and financial advisors. As of the date of this proposal, the GASB is in the midst of due process on the following projects that may affect the financial reports of the County in the future: Future Pronouncements and Projects Description of Statement Potential Impact on the County Revenue and Expense Recognition - The objective of this project is to develop a comprehensive application model for the recognition of revenues and expenses that arise from nonexchange, exchange, and exchange-like transactions, including guidance for exchange transactions that has not been specifically addressed in the current literature. Currently in the invitation to comment stage. Conceptual Framework – Recognition and Measurement Approaches – This project may affect financial statements in the future. The concepts being discussed include when to recognize transactions and on what basis to measure them (historical cost, fair value, etc.) It is speculated this these two phases of an eventual concepts statement will lead to an updated financial reporting model. Currently in the preliminary views redeliberation stage. Financial Reporting Model - The objective of the project is to make improvements to the financial reporting model including GASB Nos. 34, 35, 37, 41, 46 and Interpretation No. 6. The improvements would be to enhance the effectiveness of the model in providing information essential for decision-making, enhance the ability to assess a government’s accounting and address certain application issues. Currently in the invitation to comment redeliberation stage. ©2018 CliftonLarsonAllen LLP | 50 Future Pronouncements and Projects Description of Statement Potential Impact on the County Debt Disclosures, Including Direct Borrowing – Reexamination of Statements 34, 38 & 62 - The primary objective of this project is to define debt, including direct borrowing, to distinguish it from other long-term liabilities in applying disclosure requirements for notes to financial statements. The project also will evaluate (1) whether the disclosures in notes to financial statements related to long-term debt also should be required for short-term debt and (2) whether additional disclosures for direct borrowings are essential to a user’s understanding of the basic financial statements. Currently in the exposure draft redeliberations stage. Equity Interest Ownership Issues - This project will address certain issues related to the reporting of majority equity ownership in legally separate entities. The project will consider improvements to the existing guidance in Statement No. 14, The Financial Reporting Entity, on the presentation of ownership interest in a legally separate entity. The project also will consider improvements to the recognition and measurement guidance for wholly-owned legally separate entities that are presented as component units. Currently in the exposure draft redeliberations stage. Capitalization of Interest Cost – The objective of this project is to reconsider the accounting and financial reporting standards for capitalization of interest cost, with the goal of enhancing the relevance of capital asset information and potentially simplifying financial reporting. In particular, the guidance will be reviewed in light of the definitions of financial statement elements now established in the GASB’s conceptual framework. Currently in the exposure draft redeliberations stage. Conduit Debt – Reexamination of Interpretation 2 – The objective of this project is to address certain issues related to accounting and financial reporting for conduit debt obligations. The project will consider improvements to the existing guidance in Interpretation No. 2, Disclosure of Conduit Debt Obligations, related to: (1) diversity in current reporting that adversely affects comparability between governments, (2) whether conduit debt obligations are liabilities as defined in the GASB’s conceptual framework and, therefore, should be reported in government-issuers’ financial statements, and (3) the usefulness of required notes to government-issuers’ financial statements decision-making and assessing accountability. Currently in the initial deliberations stage. ©2018 CliftonLarsonAllen LLP | Appendix APPENDIX Required Forms  Form 2: Vendor Check List o License to Practice in Florida o Signed Addenda  Form 3: Conflict of Interest Affidavit  Form 4: Vendor Declaration Statement  Form 5: Immigration Affidavit Certification o E-Verify Company Profile  Form 6: Vendor Substitute W – 9  Insurance and Bonding Requirements Form 2: Vendor Check List IMPORTANT: THIS SHEET MUST BE SIGNED. Please read carefully, sign in the spaces indicated and return with your Proposal. Vendor should check off each of the following items as the necessary action is completed: The Solicitation Submittal has been signed. All applicable forms have been signed and included, along with licenses to complete the requirements of the project. Any addenda have been signed and included. ALL SUBMITTALS MUST HAVE THE SOLICITATION NUMBER AND TITLE Name of Firm: ________________________________________________________ Address: ________________________________________________________ City, State, Zip: ________________________________________________________ Telephone: ________________________________________________________ Email: ________________________________________________________ Representative Signature: ________________________________________________________ Representative Name: ________________________________________ Date ___________ Solicitation 18-7387Collier County 5/10/2018 9:45 AM p. 27 X X X CliftonLarsonAllen LLP Martin A. Redovan, CPA 5/22/2018 4099 Tamiami Trail North, Suite 300 Naples, FL 34103-3548 239-226-9900 martin.redovan@CLAconnect.com DBPR - CLIFTONLARSONALLEN LLP, FIRM https://www.myfloridalicense.com/LicenseDetail.asp?SID=&id=13E063AA346D1B13B9701642790A0007[12/20/2017 10:15:32 PM] Log On Home Search for a Licensee Apply for a License View Application Status Find Exam Information File a Complaint AB&T Delinquent Invoice & Activity List Search 11:15:17 PM 12/20/2017 Licensee Details Licensee Information Name:CLIFTONLARSONALLEN LLP (Primary Name) Main Address:220 S 6TH STREET, SUITE 300 ATTN: BETH SPENCER MINNEAPOLIS Minnesota 55402-1436 County:OUT OF STATE License Mailing: LicenseLocation: License Information License Type:FIRM Rank:CPA Firms License Number:AD0005891 Status:Current Licensure Date:02/01/1991 Expires:12/31/2019 Special Qualifications Qualification Effective Partnership 01/03/2012 Alternate Names View Related License Information View License Complaint 2601 Blair Stone Road, Tallahassee FL 32399 :: Email: Customer Contact Center :: Customer Contact Center: 850.487.1395 Addendum #1 Date: May 24, 2018 From: Evelyn Colon, Procurement Strategist To: Interested Bidders Subject: Addendum # 1 Solicitation # 18-7387 Annual Audit Services The following clarifications are issued as an addendum identifying the following clarification to the scope of work, changes, deletions, or additions to the original solicitation document for the referenced solicitation: Change 1. 2017 CAFR Report If you require additional information please post a question on our Bid Sync (www.bidsync.com) bidding platform under the solicitation for this project. Please sign below and return a copy of this Addendum with your submittal for the above referenced solicitation. (Signature) Date (Name of Firm) Email: evelyn.colon@colliercountyfl.gov Telephone: (239)-252-2667 CliftonLarsonAllen LLP May 25, 2018 Addendum #2 Date: May 24, 2018 From: Evelyn Colon, Procurement Strategist To: Interested Bidders Subject: Addendum # 2 Solicitation # 18-7387 Annual Audit Services The following clarifications are issued as an addendum identifying the following clarification to the scope of work, changes, deletions, or additions to the original solicitation document for the referenced solicitation: Change 1. Contract 13-6132 If you require additional information please post a question on our Bid Sync (www.bidsync.com) bidding platform under the solicitation for this project. Please sign below and return a copy of this Addendum with your submittal for the above referenced solicitation. (Signature) Date (Name of Firm) Email: evelyn.colon@colliercountyfl.gov Telephone: (239)-252-2667 June 11, 2018 CliftonLarsonAllen LLP Form 3: Conflict of Interest Affidavit The Vendor certifies that, to the best of its knowledge and belief, the past and current work on any Collier County project affiliated with this solicitation does not pose an organizational conflict as described by one of the three categories below: Biased ground rules – The firm has not set the “ground rules” for affiliated past or current Collier County project identified above (e.g., writing a procurement’s statement of work, specifications, or performing systems engineering and technical direction for the procurement) which appears to skew the competition in favor of my firm. Impaired objectivity – The firm has not performed work on an affiliated past or current Collier County project identified above to evaluate proposals / past performance of itself or a competitor, which calls into question the contractor’s ability to render impartial advice to the government. Unequal access to information – The firm has not had access to nonpublic information as part of its performance of a Collier County project identified above which may have provided the contractor (or an affiliate) with an unfair competitive advantage in current or future solicitations and contracts. In addition to this signed affidavit, the contractor / vendor must provide the following: 1.All documents produced as a result of the work completed in the past or currently being worked on for the above mentioned project; and, 2.Indicate if the information produced was obtained as a matter of public record (in the “sunshine”) or through non-public (not in the “sunshine”) conversation (s), meeting(s), document(s) and/or other means. Failure to disclose all material or having an organizational conflict in one or more of the three categories above be identified, may result in the disqualification for future solicitations affiliated with the above referenced project(s). By the signature below, the firm (employees, officers and/or agents) certifies, and hereby discloses, that, to the best of their knowledge and belief, all relevant facts concerning past, present, or currently planned interest or activity (financial, contractual, organizational, or otherwise) which relates to the project identified above has been fully disclosed and does not pose an organizational conflict. Firm: ____________________________________________________________________________ Signature and Date:_________________________________________________________________ Print Name: _______________________________________________________________________ Title of Signatory: __________________________________________________________________ Solicitation 18-7387Collier County 5/10/2018 9:45 AM p. 28 CliftonLarsonAllen LLP Martin A. Redovan, CPA May 22, 2018 Principal Form 4: Vendor Declaration Statement BOARD OF COUNTY COMMISSIONERS Collier County Government Complex Naples, Florida 34112 Dear Commissioners: The undersigned, as Vendor declares that this response is made without connection or arrangement with any other person and this proposal is in every respect fair and made in good faith, without collusion or fraud. The Vendor agrees, if this solicitation submittal is accepted, to execute a Collier County document for the purpose of establishing a formal contractual relationship between the firm and Collier County, for the performance of all requirements to which the solicitation pertains. The Vendor states that the submitted is based upon the documents listed by the above referenced Solicitation. Further, the vendor agrees that if awarded a contract for these goods and/or services, the vendor will not be eligible to compete, submit a proposal, be awarded, or perform as a sub-vendor for any future associated with work that is a result of this awarded contract. IN WITNESS WHEREOF, WE have hereunto subscribed our names on this _____ day of _____________, 20__ in the County of _______________, in the State of _____________. Firm’s Legal Name: Address: City, State, Zip Code: Florida Certificate of Authority Document Number Federal Tax Identification Number *CCR # or CAGE Code *Only if Grant Funded __________________________________________________________________________ Telephone: Signature by: (Typed and written) Title: Solicitation 18-7387Collier County 5/10/2018 9:45 AM p. 29 CliftonLarsonAllen LLP 4099 Tamiami Trail North, Suite 300 Naples, FL 34103-3548 22 May 18 Collier Florida 41-0746749 AD0005891 239-226-9900 N/A Principal Martin A. Redovan, CPA Additional Contact Information Send payments to: (required if different from above) Company name used as payee Contact name: Title: Address: City, State, ZIP Telephone: Email: Office servicing Collier County to place orders (required if different from above) Contact name: Title: Address: City, State, ZIP Telephone: Email: Solicitation 18-7387Collier County 5/10/2018 9:45 AM p. 30 Same as above Form 5: Immigration Affidavit Certification This Affidavit is required and should be signed, notarized by an authorized principal of the firm and submitted with formal solicitation submittals. Further, Vendors are required to enroll in the E-Verify program, and provide acceptable evidence of their enrollment, at the time of the submission of the Vendor’s proposal. Acceptable evidence consists of a copy of the properly completed E-Verify Company Profile page or a copy of the fully executed E-Verify Memorandum of Understanding for the company. Failure to include this Affidavit and acceptable evidence of enrollment in the E-Verify program may deem the Vendor’s proposal as non-responsive. Collier County will not intentionally award County contracts to any Vendor who knowingly employs unauthorized alien workers, constituting a violation of the employment provision contained in 8 U.S.C. Section 1324 a(e) Section 274A(e) of the Immigration and Nationality Act (“INA”). Collier County may consider the employment by any Vendor of unauthorized aliens a violation of Section 274A (e) of the INA. Such Violation by the recipient of the Employment Provisions contained in Section 274A (e) of the INA shall be grounds for unilateral termination of the contract by Collier County. Vendor attests that they are fully compliant with all applicable immigration laws (specifically to the 1986 Immigration Act and subsequent Amendment(s)) and agrees to comply with the provisions of the Memorandum of Understanding with E-Verify and to provide proof of enrollment in The Employment Eligibility Verification System (E-Verify), operated by the Department of Homeland Security in partnership with the Social Security Administration at the time of submission of the Vendor’s proposal. Company Name ____________________________________________________________________ Print Name Title _______________________ Signature Date _______________________ State of ___________________ County of _________________ The signee of these Affidavit guarantees, as evidenced by the sworn affidavit required herein, the truth and accuracy of this affidavit to interrogatories hereinafter made. Solicitation 18-7387Collier County 5/10/2018 9:45 AM p. 31 Martin A. Redovan, CPA Principal May 22, 2018 CliftonLarsonAllen LLP Florida Collier Page 21 of 25 E-Verify MOU for Employers Using a Web Services E-Verify Employer Agent | Revision Date 06/01/13 Company ID Number:Client Company ID Number: Approved by: Employer Name (Please Type or Print) Title Signature Date E-Verify Employer Agent Name (Please Type or Print) Title Signature Date Department of Homeland Security – Verification Division Name (Please Type or Print) Title Signature Date 65719 976827 CliftonLarsonAllen LLP SilkRoad technology, Inc. Elizabeth Christensen Electronically Signed 06/03/2016 USCIS Verification Division Electronically Signed 06/23/2016 Page 22 of 25 E-Verify MOU for Employers Using a Web Services E-Verify Employer Agent | Revision Date 06/01/13 Company ID Number:Client Company ID Number: Information Required for the E-Verify Program Information relating to your Company: Company Name Company Facility Address Company Alternate Address County or Parish Employer Identification Number North American Industry Classification Systems Code Parent Company Number of Employees Number of Sites Verified for 65719 976827 CliftonLarsonAllen LLP 220 South Sizth Street Suite 300 Minneapolis, MN 55402 HENNEPIN 410746749 541 CliftonLarsonAllen LLP 1,000 to 2,499 95 Page 23 of 25 E-Verify MOU for Employers Using a Web Services E-Verify Employer Agent | Revision Date 06/01/13 Company ID Number: Client Company ID Number: Are you verifying for more than 1 site? If yes, please provide the number of sites verified for in each State: 65719 976827 ARIZONA 3 site(s) CALIFORNIA 1 site(s) COLORADO 2 site(s) FLORIDA 7 site(s) GEORGIA 1 site(s) IOWA 2 site(s) IDAHO 1 site(s) ILLINOIS 13 site(s) INDIANA 3 site(s) KANSAS 2 site(s) MASSACHUSETTS 4 site(s) MARYLAND 3 site(s) MINNESOTA 16 site(s) MISSOURI 3 site(s) NORTH CAROLINA 3 site(s) NEW MEXICO 1 site(s) NEW YORK 1 site(s) OHIO 1 site(s) PENNSYLVANIA 3 site(s) TEXAS 2 site(s) VIRGINIA 1 site(s) WASHINGTON 11 site(s) WISCONSIN 11 site(s) Page 24 of 25 E-Verify MOU for Employers Using a Web Services E-Verify Employer Agent | Revision Date 06/01/13 Company ID Number: Client Company ID Number: Information relating to the Program Administrator(s) for your Company on policy questions or operational problems: 65719 976827 Name Mary Ann Szwed Phone Number (703) 825 - 2104 Fax Number Email Address maryann.szwed@claconnect.com Name Joanne Sipin Phone Number (414) 721 - 7505 Fax Number Email Address joanne.sipin@claconnect.com Name Kaitlin Cummings Phone Number (414) 476 - 1880 Fax Number Email Address Kaitlin.cummings@claconnect.com Form 6: Vendor Substitute W – 9 Request for Taxpayer Identification Number and Certification In accordance with the Internal Revenue Service regulations, Collier County is required to collect the following information for tax reporting purposes from individuals and companies who do business with the County (including social security numbers if used by the individual or company for tax reporting purposes). Florida Statute 119.071(5) requires that the county notify you in writing of the reason for collecting this information, which will be used for no other purpose than herein stated. Please complete all information that applies to your business and return with your quote or proposal. 1. General Information (provide all information) Taxpayer Name ________________________________________________________________________________ (as shown on income tax return) Business Name (if different from taxpayer name) Address ____________________________________ City ______________________________________________ State ______________________________________ Zip______________________________________________ Telephone __________________ Email_____________________ Order Information (Must be filled out) Address ___________________________________ Remit / Payment Information (Must be filled out) Address ____________________________________________ City __________ State ________ Zip ___________ City _____________State _________ Zip______________ Email ____________________________________ Email _____________________________________________ 2.Company Status (check only one) Individual / Sole Proprietor Corporation Partnership Tax Exempt (Federal income tax-exempt entity under Internal Revenue Service guidelines IRC 501 (c) 3) Limited Liability Partnership[ Enter the tax classification (D = Disregarded Entity, C = Corporation, P = Partnership) 3.Taxpayer Identification Number (for tax reporting purposes only) Federal Tax Identification Number (TIN) _______________________________________________________________ (Vendors who do not have a TIN, will be required to provide a social security number prior to an award). 4.Sign and Date Form: Certification: Under penalties of perjury, I certify that the information shown on this form is correct to my knowledge. Signature ___________________________________________________________ Date ______________________________ Title _______________________________________________________________ Phone Number ________________________ Solicitation 18-7387Collier County 5/10/2018 9:45 AM p. 32 CliftonLarsonAllen LLP 4099 Tamiami Trail North, Suite 300 Naples Florida 34103 X 41-0746749 Principal 239-226-9900 May 22, 2018 239-226-9900 martin.redovan@claconnect.com 4099 Tamiami Trail North, Suite 300 4099 Tamiami Trail North, Suite 300 Naples NaplesFL FL 3410334103 martin.redovan@claconnect.com martin.redovan@claconnect.com INSURANCE AND BONDING REQUIREMENTS Insurance / Bond Type Required Limits 1. Worker’s Compensation Statutory Limits of Florida Statutes, Chapter 440 and all Federal Government Statutory Limits and Requirements Evidence of Workers’ Compensation coverage or a Certificate of Exemption issued by the State of Florida is required. Entities that are formed as Sole Proprietorships shall not be required to provide a proof of exemption. An application for exemption can be obtained online at https://apps.fldfs.com/bocexempt/ 2. Employer’s Liability $_______1,000,000 single limit per occurrence 3. Commercial General Liability (Occurrence Form) patterned after the current ISO form Bodily Injury and Property Damage $_____1,000,000____single limit per occurrence, $2,000,000 aggregate for Bodily Injury Liability and Property Damage Liability. This shall include Premises and Operations; Independent Contractors; Products and Completed Operations and Contractual Liability. 4. Indemnification To the maximum extent permitted by Florida law, the Contractor/Vendor shall defend, 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, to the extent caused by the negligence, recklessness, or intentionally wrongful conduct of the Contractor/ Vendor or anyone employed or utilized by the Contractor/Vendor in the performance of this Agreement. 5. Automobile Liability $_________ Each Occurrence; Bodily Injury & Property Damage, Owned/Non-owned/Hired; Automobile Included 6. Other insurance as noted: Watercraft $ __________ Per Occurrence United States Longshoreman's and Harborworker's Act coverage shall be maintained where applicable to the completion of the work. $ __________ Per Occurrence Maritime Coverage (Jones Act) shall be maintained where applicable to the completion of the work. $ __________ Per Occurrence Aircraft Liability coverage shall be carried in limits of not less than $5,000,000 each occurrence if applicable to the completion of the Services under this Agreement. $ __________ Per Occurrence Pollution $ __________ Per Occurrence Professional Liability $ ___1,000,000____ Per claim & in the aggregate Project Professional Liability $__________ Per Occurrence Valuable Papers Insurance $__________ Per Occurrence Cyber Liability $__________ Per Occurrence Technology Errors & Omissions $__________ Per Occurrence 7. Bid bond Shall be submitted with proposal response in the form of certified funds, cashiers’ check or an irrevocable letter of credit, a cash bond posted with the County Clerk, or proposal bond in a sum equal to 5% of the cost proposal. All checks shall be made payable to the Collier County Board of County Commissioners on a bank or trust company located in the State of Florida and insured by the Federal Deposit Insurance Corporation. 8. Performance and Payment Bonds For projects in excess of $200,000, bonds shall be submitted with the executed contract by Proposers receiving award, and written for 100% of the Contract award amo unt, the cost borne by the Proposer receiving an award. The Performance and Payment Bonds shall be underwritten by a surety authorized to do business in the State of Florida and otherwise acceptable to Owner; provided, however, the surety shall be rated as “A-“ or better as to general policy holders rating and Class V or higher rating as to financial size category and the amount required shall not exceed 5% of the reported policy holders’ surplus, all as reported in the most current Best Key Rating Guide, published by A.M. Best Company, Inc. of 75 Fulton Street, New York, New York 10038. 9. Vendor shall ensure that all subcontractors comply with the same insurance requirements that he is required to meet. The same Vendor shall provide County with certificates of insurance meeting the required insurance provisions. 10. Collier County must be named as "ADDITIONAL INSURED" on the Insurance Certificate for Commercial General Liability where required. This insurance shall be primary and non-contributory with respect to any other insurance maintained by, or available for the benefit of, the Additional Insured and the Vendor’s policy shall be endorsed accordingly. 11. The Certificate Holder shall be named as Collier County Board of County Commissioners, OR, Board of County Commissioners in Collier County, OR Collier County Government, OR Collier County. The Certificates of Insurance must state the Contract Number, or Project Number, or specific Project description, or must read: For any and all work performed on behalf of Collier County. 12. Thirty (30) Days Cancellation Notice required. 5/10/18 - CC ________________________________________________________________________________________ Vendor’s Insurance Statement We understand the insurance requirements of these specifications and that the evidence of insurability may be required within five (5) days of the award of this solicitation. Name of Firm _______________________________________ Date ____________________________ Vendor Signature _________________________________________________________________________ Print Name _________________________________________________________________________ Insurance Agency _________________________________________________________________________ Agent Name ___________________________________ Telephone Number ________________ May 22, 2018CliftonLarsonAllen LLP Martin A. Redovan, CPA, Principal North Risk Partners LLC Rose Tonn 651-486-2183 05/21/2018 North Risk Partners, LLC 622 Roosevelt Road Suite 240 St. Cloud MN 56301 Rose Tonn (651)486-2183 (651)484-1602 rose.tonn@northriskpartners.com CliftonLarsonAllen LLP LarsonAllen LLP, Clifton Gunderson LLP 220 South 6th Street, Suite 300 Minneapolis MN 55402-1436 Great Northern Insurance Co 20303 Federal Insurance Company 20281 Chubb Indemnity Insurance Co 12777 17/18 CERT #1 A Y 3598-35-69 12/31/2017 12/31/2018 1,000,000 1,000,000 10,000 1,000,000 2,000,000 2,000,000 Combined Aggregate 10,000,000 B 7357-28-25 12/31/2017 12/31/2018 1,000,000 C N 7174-92-76 12/31/2017 12/31/2018 1,000,000 1,000,000 1,000,000 For any and all work performed on behalf of Collier County. Certificate holder is included as additional insured on General Liability per form 80-02-2367 & on Auto per form 16-02-0292 when required in prior written contract. General Liability is primary and non-contributory and Auto Liability is primary when required in prior written contract. Waiver of Subrogation included on General Liability per form 80-02-2000 & on Auto per form 16-02-0292 when required in prior written contract. General Liability & Auto Policies have been endorsed to provide 30 days notice of cancellation, with the exception of 10 days notice of cancellation for non-payment of premium per form 80-02-9779 and 16-02-0306 respectively. Collier County Board of Commissioners 3327 Tamiami Trail East Naples FL 34112-4901 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY ©2018 CliftonLarsonAllen LLP | Appendix Quality Control Procedures and Peer Review Report ©2018 CliftonLarsonAllen LLP | Appendix The most recent peer review report we received a rating of pass, which is the most positive report a firm can receive. We are proud of this accomplishment and its strong evidence of our commitment to technical excellence and quality service. The full report is provided on the following page. In addition to an external peer review, we have implemented an intensive internal quality control system to provide reasonable assurance that the firm and our personnel comply with professional standards and applicable legal and regulatory requirements. Our quality control system includes the following:  A quality control document that dictates the quality control policies of our firm. In many cases, these policies exceed the requirements of standard setters and regulatory bodies. Firm leadership promotes and demonstrates a culture of quality that is pervasive throughout the firm’s operations. To monitor our adherence to our policies and procedures, and to foster quality and accuracy in our services, internal inspections are performed annually.  Quality control standards as prescribed by the AICPA. The engagement principal is involved in the planning, fieldwork, and post-fieldwork review. In addition, an appropriately experienced professional performs a risk-based second review of the engagement prior to issuance of the reports.  Hiring decisions and professional development programs designed so personnel possess the competence, capabilities, and commitment to ethical principles, including independence, integrity, and objectivity, to perform our services with due professional care.  An annual internal inspection program to monitor compliance with CLA’s quality control policies. Workpapers from a representative sample of engagements are reviewed and improvements to our practices and processes are made, if necessary, based on the results of the internal inspection.  Strict adherence to the AICPA’s rules of professional conduct, which specifically require maintaining the confidentiality of client records and information. Privacy and trust are implicit in the accounting profession, and CLA strives to act in a way that will honor the public trust.  A requirement that all single audit engagements be reviewed by a designated single audit reviewer, thereby confirming we are in compliance with the standards set forth in OMB Uniform Guidance. ©2018 CliftonLarsonAllen LLP | Appendix