HomeMy Public PortalAbout19-9671Clarifying by Reclassifying Reso No. 19-9613 to anthony BrunsonSponsored by: City Manager
RESOLUTION NO.19-9671
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF OPA-LOCKA, FLORIDA, CLARIFYING BY
RECLASSIFYING RESOLUTION NO. 19-9613 FROM
AMENDMENT 3 TO AMENDMENT 2 PERTAINING TO
AN AGREEMENT WITH ANTHONY BRUNSON, P.A.
FOR THE PROVISION OF AUDIT SERVICES;
AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENT 3 WITH AUDITOR FOR THE
EMERGENCY COMPLETION OF AUDIT SERVICES FOR
THE FISCAL YEAR ENDING SEPTEMBER 30, 2017;
PROVIDING FOR CORRECTION OF SCRIVENERS'
ERRORS; PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on November 17, 2016, the City Commission of the City of Opa-
Locka, Florida ("City Commission') passed Resolution No. 16-9273 piggybacking the
City of Miami Gardens' external auditing agreement with Anthony Brunson, P.A. for
the provision of external auditing services; and
WHEREAS, on May 9, 2018 the City Commission passed Resolution No. 18-9490
amending the initial agreement with Anthony Brunson, P. A. to change the fee amount
from $85,000 to $125,780.00 in order to address additional time expended by the firm;
and
WHEREAS, the May 9, 2018 amendment was the 1st Amendment to the
piggyback agreement between Anthony Brunson, P. A. and the City of Opa-Locka; and
WHEREAS, on February 27, 2019 the City of Opa-Locka passed Resolution No.
19-9613, which was a 2nd Amendment to said audit services contract with Anthony
Brunson, P.A., but was mistakenly classified as a "3rd Amendment", a scriveners' error;
and
WHEREAS, Resolution 19-9613 amended the initial agreement with Anthony
Brunson, P.A. to increase the fee to the City by an additional $12,000.00, to address
Resolution No. 19-9671
additional time that was expended in order to complete the fiscal year audit ending
2016; and
WHEREAS, the City Commission desires to correct Resolution No. 19-9613, to
reflect that it should be the 2nd Amendment to the Audit Services Agreement and
further directs the City Clerk to attach this resolution to Resolution No. 19-9613 to
correct the intended record of the City; and
WHEREAS, due to the emergency nature associated with the City needing to
complete the audit ending September 30, 2017, and start services no later than July 1,
2019, the City desires to secure Anthony Brunson P.A. given the firm's familiarity with
the City's books and records and given the increased expense that would be associated
with securing a different firm at this time; and
WHEREAS, the City desires to enter into the Agreement, attached hereto as
Exhibit "A", with Anthony Brunson, P.A. as a 3rd Amendment to the Audit Services
Agreement under terms that will require a detailed billing statement to substantiate the
work performed; require a specified hourly rate that shall not to exceed $65,000.00 and
allow for termination by either party with reasonable notice; and
WHEREAS, execution of the Agreement with Anthony Brunson, P. A. would be
in the best interest of the residents of the City of Opa-Locka, FL.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION
OF THE CITY OF OPA-LOCKA, FLORIDA:
Section 1. Adoption of Representations. The above recitals are true and correct and
are incorporated into this Resolution by reference.
Section 2. Clarifying by Reclassifying Resolution No.19-9613 as Amendment 2.
The City Commission of the City of Opa-locka hereby reclassifies Resolution No. 19-
9613 as Amendment No. 2., and further makes clear that the resolution was intended
for Auditing Services.
Section 3. Authorizing the City Manager to Enter Into Agreement for Emergency
Completion of Audit for Year Ending September 30, 2017. The City Commission hereby
authorizes the City Manager to execute the 3rd Amendment to the Agreement with
Resolution No. 19-9671
Anthony Brunson, P.A., in the form attached hereto as Exhibit "A" for Auditing
Services.
Section 4. Direction to City Clerk.
The City Clerk is hereby directed to attach a copy of this passed Resolution to
Resolution No.19-9613 in order to correct the described scriveners' error.
Section 5. Effective Date.
This Resolution shall take effect immediately upon adoption and is subject to the
approval of the Governor or his designee.
PASSED and ADOPTED this 26th day of June, 2019.
ATTEST:
nna Flores, City Clerk
APPROVED AS TO FORM AND
LEGAL SUFFICIENCY:
Burn
City Attorney
eeks, P.A.
Matthew A. Pigatt, Mayor
Resolution No. 19-9671
Moved by: Vice Mayor Davis
Seconded by: Commissioner Bass
VOTE: 5-0
Commissioner Bass YES
Commissioner Burke YES
Commissioner Kelley YES
Vice -Mayor Davis YES
Mayor Pigatt YES
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
June 10, 2019
Mr. Newall J. Daughtrey, City Manager
City of Opa-Locka
780 Fisherman Street
Opa-Locka, FL 33054
Dear Sirs:
We are pleased to confirm our understanding of the services we are to provide the City of Opa-Locka (the
"City") for the years ended September 30, 2017 We will audit the financial statements of the
governmental activities, the business -type activities, each major fund, and the aggregate remaining fund
information, including the related notes to the financial statements, which collectively comprise the basic
financial statements, of the City as of and for the year ended September 30, 2017.as well as September
30 2018. Accounting standards generally accepted in the United States of America provide for certain
required supplementary information (RSI), such as management's discussion and analysis (MD&A), to
supplement the City's basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. As part of our engagement, we will apply certain limited
procedures to the City's RSI in accordance with auditing standards generally accepted in the United States of
America. These limited procedures will consist of inquiries of management regarding the methods of
preparing the information and comparing the information for consistency with management's responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We will not express an opinion or provide any assurance on the information because
the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance. The following RSI is required by generally accepted accounting principles and will be subjected to
certain limited procedures, but will not be audited:
1. Management's Discussion and Analysis
2. Budgetary Comparison Schedule
3. Schedule of Employer Contributions to Pension Plans
4. Schedule of the City's Proportionate Share of Net Pension Liability Florida Retirement
System Pension Plan
5. Schedule of City's Contribution Florida Retirement System Pension Plan
6. Schedule of the City's Proportionate Share of Net Pension liability, Health Insurance Subsidy
Plan
7. Schedule of City's Contribution- Health Insurance Subsidy Pension Plan
8. Schedule of Funding Progress for Other Post -Employment Benefit Plan
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
We have also been engaged to report on supplementary information other than RSI that accompanies the
City's financial statements. We will subject the following supplementary information to the auditing
procedures applied in our audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America, and
we will provide an opinion on it in relation to the financial statements as a whole, in a report combined
with our auditor's report on the financial statements:
1. Schedule of expenditures of federal awards and state financial assistance, as applicable.
2. Combining and individual fund statements and schedules.
The following other information accompanying the financial statements will not be subjected to the
auditing procedures applied in our audit of the financial statements, and our auditor's report will not
provide an opinion or any assurance on that other information.
1. The introductory section of the comprehensive annual financial report.
2. The statistical section of the comprehensive annual financial report.
Audit Objectives
The objective of our audit is the expression of opinions as to whether your financial statements are fairly
presented, in all material respects, in conformity with U.S. generally accepted accounting principles and
to report on the fairness of the supplementary information referred to in the second paragraph when
considered in relation to the financial statements as a whole. The objective also includes reporting on:
• Internal control related to the financial statements and compliance with the provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a material
effect on the financial statements in accordance with Government Auditing Standards.
Internal control over compliance related to major programs and an opinion (or disclaimer of opinion) on
compliance with federal statutes, regulations, and the terms and conditions of federal awards that could
have a direct and material effect on each major program in accordance with the Single Audit Act
Amendments of 1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).Also, the
requirements described in the Department of Financial Services' State Projects Compliance Supplement that
are applicable to each of its major state projects.
The Government Auditing Standards report on internal control over financial reporting and on compliance
and other matters will include a paragraph that states that (1) the purpose of the report is solely to
describe the scope of testing of internal control and compliance and the results of that testing, and not to
provide an opinion on the effectiveness of the entity's internal control or on compliance, and (2) the
report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the entity's internal control and compliance. The Uniform Guidance report on internal control
over compliance will include a paragraph that states that the purpose of the report on internal control
over compliance is solely to describe the scope of testing of internal control over compliance and the
results of that testing based on the requirements of the Uniform Guidance and
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
Audit Objectives- Continued
Chapter 10.550, Rules of the Auditor General. Both reports will state that the report is not suitable for any
other purpose.
Our audit will be conducted in accordance with auditing standards generally accepted in the United States
of America; the standards for financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; Section 10.557 Rules of the Auditor General for Local
Governmental Entity Audits the Single Audit Act Amendments of 1996; and the provisions of the Uniform
Guidance, and will include tests of accounting records, a determination of major program(s) in accordance
with the Uniform Guidance, and a determination of state major project(s) in accordance with Chapter
10.550, Rules of the Auditor General and other procedures we consider necessary to enable us to express
such opinions. We will issue written reports upon completion of our Single Audit. Our reports will be
addressed to the Mayor and members of the City Council of the City of Opa-Locka. We cannot provide
assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary
for us to modify our opinions or add emphasis -of -matter or other -matter paragraphs. If our opinions are
other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable
to complete the audit or are unable to form or have not formed opinions, we may decline to express
opinions or issue reports, or may withdraw from this engagement.
Audit Procedures —General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of significant accounting estimates made by management, as well
as evaluating the overall presentation of the financial statements. We will plan and perform the audit to
obtain reasonable rather than absolute assurance about whether the financial statements are free of
material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation
of assets, or (4) violations of laws or governmental regulations that are attributable to the government or
to acts by management or employees acting on behalf of the government. Because the determination of
abuse is subjective, Government Auditing Standards do not expect auditors to provide reasonable
assurance of detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control,
and because we will not perform a detailed examination of all transactions, there is a risk that material
misstatements or noncompliance may exist and not be detected by us, even though the audit is properly
planned and performed in accordance with U.S. generally accepted auditing standards and Government
Auditing Standards. In addition, an audit is not designed to detect immaterial misstatements or violations
of laws or governmental regulations that do not have a direct and material effect on the financial
statements or major programs. However, we will inform the appropriate level of management of any
material errors, any fraudulent financial reporting, or misappropriation of assets that come to our
attention. We will also inform the appropriate level of management of any violations of laws or
governmental regulations that come to our attention, unless clearly inconsequential, and of any material
abuse that comes to our attention. We will include such matters in the reports required for a Single Audit.
Our responsibility as auditors is limited to the period covered by our audit and does not extend to any
later periods for which we are not engaged as auditors.
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
Audit Procedures —General - Continued
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, funding
sources, creditors, and financial institutions. We will request written representations from your attorneys
as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our
audit, we will require certain written representations from you about your responsibilities for the financial
statements; schedule of expenditures of federal awards; federal award programs; compliance with laws,
regulations, contracts, and grant agreements; and other responsibilities required by generally accepted
auditing standards.
Audit Procedures —Internal Control
Our audit will include obtaining an understanding of the government and its environment, including
internal control, sufficient to assess the risks of material misstatement of the financial statements and to
design the nature, timing, and extent of further audit procedures. Tests of controls may be performed to
test the effectiveness of certain controls that we consider relevant to preventing and detecting errors and
fraud that are material to the financial statements and to preventing and detecting misstatements
resulting from illegal acts and other noncompliance matters that have a direct and material effect on the
financial statements. Our tests, if performed, will be less in scope than would be necessary to render an
opinion on internal control and, accordingly, no opinion will be expressed in our report on internal control
issued pursuant to Government Auditing Standards.
As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the
effectiveness of the design and operation of controls that we consider relevant to preventing or detecting
material noncompliance with compliance requirements applicable to each major federal award program.
However, our tests will be less in scope than would be necessary to render an opinion on those controls
and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to the
Uniform Guidance.
An audit is not designed to provide assurance on internal control or to identify significant deficiencies or
material weaknesses. However, during the audit, we will communicate to management and those charged
with governance internal control related matters that are required to be communicated under AICPA
professional standards, Government Auditing Standards, and the Uniform Guidance.
Audit Procedures —Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the City's compliance with provisions of applicable laws,
regulations, contracts, and agreements, including grant agreements. However, the objective of those
procedures will not be to provide an opinion on overall compliance and we will not express such an
opinion in our report on compliance issued pursuant to Government Auditing Standards.
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
Audit Procedures —Compliance - Continued
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance
about whether the auditee has complied with federal statutes, regulations, and the terms and conditions
of federal awards applicable to major programs. Our procedures will consist of tests of transactions and
other applicable procedures described in the OMB Compliance Supplement for the types of compliance
requirements that could have a direct and material effect on each of the City's major programs. The
purpose of these procedures will be to express an opinion on the City's compliance with requirements
applicable to each of its major programs in our report on compliance issued pursuant to the Uniform
Guidance.
Management Responsibilities
Management is responsible for (1) establishing and maintaining effective internal controls, including
internal controls over federal awards, and for evaluating and monitoring ongoing activities, to help ensure
that appropriate goals and objectives are met; (2) following laws and regulations; (3) ensuring that there
is reasonable assurance that government programs are administered in compliance with compliance
requirements; and (4) ensuring that management and financial information is reliable and properly
reported. Management is also responsible for implementing systems designed to achieve compliance with
applicable laws, regulations, contracts, and grant agreements. You are also responsible for the selection
and application of accounting principles; for the preparation and fair presentation of the financial
statements, schedule of expenditures of federal awards, and all accompanying information in conformity
with U.S. generally accepted accounting principles; and for compliance with applicable laws and
regulations (including federal statutes) and the provisions of contracts and grant agreements (including
award agreements). Your responsibilities also include identifying significant contractor relationships in
which the contractor has responsibility for program compliance and for the accuracy and completeness
of that information.
Management is also responsible for making all financial records and related information available to us
and for the accuracy and completeness of that information. You are also responsible for providing us with
(1) access to all information of which you are aware that is relevant to the preparation and fair
presentation of the financial statements, (2) access to personnel, accounts, books, records, supporting
documentation, and other information as needed to perform an audit under the Uniform Guidance, (3)
additional information that we may request for the purpose of the audit, and (4) unrestricted access to
persons within the government from whom we determine it necessary to obtain audit evidence.
Your responsibilities include adjusting the financial statements to correct material misstatements and
confirming to us in the management representation letter that the effects of any uncorrected
misstatements aggregated by us during the current engagement and pertaining to the latest period
presented are immaterial, both individually and in the aggregate, to the financial statements as a whole.
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
Management Responsibilities - Continued
You are responsible for the design and implementation of programs and controls to prevent and detect
fraud, and for informing us about all known or suspected fraud affecting the government involving (1)
management, (2) employees who have significant roles in internal control, and (3) others where the fraud
could have a material effect on the financial statements. Your responsibilities include informing us of your
knowledge of any allegations of fraud or suspected fraud affecting the government received in
communications from employees, former employees, grantors, regulators, or others. In addition, you are
responsible for identifying and ensuring that the government complies with applicable laws, regulations,
contracts, agreements, and grants. Management is also responsible for taking timely and appropriate
steps to remedy fraud and noncompliance with provisions of laws, regulations, contracts, and grant
agreements, or abuse that we report. Additionally, as required by the Uniform Guidance, it is
management's responsibility to evaluate and monitor noncompliance with federal statutes, regulations,
and the terms and conditions of federal awards; take prompt action when instances of noncompliance
are identified including noncompliance identified in audit findings; promptly follow up and take corrective
action on reported audit findings; and prepare a summary schedule of prior audit findings and a separate
corrective action plan. The summary schedule of prior audit findings should be available for our review.
You are responsible for identifying all federal awards received and understanding and complying with the
compliance requirements and for the preparation of the schedule of expenditures of federal awards
(including notes and noncash assistance received) in conformity with the Uniform Guidance. You agree to
include our report on the schedule of expenditures of federal awards in any document that contains and
indicates that we have reported on the schedule of expenditures of federal awards. You also agree to
[include the audited financial statements with any presentation of the schedule of expenditures of federal
awards that includes our report thereon OR make the audited financial statements readily available to
intended users of the schedule of expenditures of federal awards no later than the date the schedule of
expenditures of federal awards is issued with our report thereon]. Your responsibilities include
acknowledging to us in the written representation letter that (1) you are responsible for presentation of
the schedule of expenditures of federal awards in accordance with the Uniform Guidance; (2) you believe
the schedule of expenditures of federal awards, including its form and content, is stated fairly in
accordance with the Uniform Guidance; (3) the methods of measurement or presentation have not
changed from those used in the prior period (or, if they have changed, the reasons for such changes); and
(4) you have disclosed to us any significant assumptions or interpretations underlying the measurement
or presentation of the schedule of expenditures of federal awards.
You are also responsible for the preparation of the other supplementary information, which we have been
engaged to report on, in conformity with U.S. generally accepted accounting principles. You agree to
include our report on the supplementary information in any document that contains, and indicates that
we have reported on, the supplementary information. You also agree to [include the audited financial
statements with any presentation of the supplementary information that includes our report thereon OR
make the audited financial statements readily available to users of the supplementary information no
later than the date the supplementary information is issued with our report thereon].
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
Management Responsibilities - Continued
Your responsibilities include acknowledging to us in the written representation letter that (1) you are
responsible for presentation of the supplementary information in accordance with GAAP; (2) you believe
the supplementary information, including its form and content, is fairly presented in accordance with
GAAP; (3) the methods of measurement or presentation have not changed from those used in the prior
period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any
significant assumptions or interpretations underlying the measurement or presentation of the
supplementary information.
Management is responsible for establishing and maintaining a process for tracking the status of audit
findings and recommendations. Management is also responsible for identifying for us previous financial
audits, attestation engagements, performance audits, or other studies related to the objectives discussed
in the Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions
taken to address significant findings and recommendations resulting from those audits, attestation
engagements, performance audits, or studies. You are also responsible for providing management's views
on our current findings, conclusions, and recommendations, as well as your planned corrective actions,
for the report, and for the timing and format for providing that information.
With regard to using the auditor's report, you understand that you must obtain our prior written consent
to reproduce or use our report in bond offering official statements or other documents.
You agree to assume all management responsibilities relating to the financial statements, schedule of
expenditures of federal awards, and related notes, and any other nonaudit services we provide. You will
be required to acknowledge in the management representation letter our assistance with preparation of
the financial statements, schedule of expenditures of federal awards, and related notes and that you have
reviewed and approved the financial statements, schedule of expenditures of federal awards, and related
notes prior to their issuance and have accepted responsibility for them. Further, you agree to oversee the
nonaudit services by designating an individual, preferably from senior management, with suitable skill,
knowledge, or experience; evaluate the adequacy and results of those services; and accept responsibility
for them.
Engagement Administration, Fees, and Other
We understand that your employees will prepare all cash, accounts receivable, or other confirmations we
request and will locate any documents selected by us for testing.
At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection
Form that summarizes our audit findings. It is management's responsibility to submit the reporting
package (including financial statements, schedule of expenditures of federal awards, summary schedule
of prior audit findings, auditors' reports, and corrective action plan) along with the Data Collection Form
to the federal audit clearinghouse. We will coordinate with you the electronic submission and
certification. If applicable, we will provide copies of our report for you to include with the reporting
package you will submit to pass -through entities. The Data Collection Form and the reporting package
must be submitted within the earlier of 30 days after receipt of the auditors' reports or nine months after
the end of the audit period, unless a longer period is agreed to in advance by the cognizant or oversight
agency for audits.
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
Engagement Administration, Fees, and Other -Continued
In connection with this engagement, we may communicate with you or others via email transmission. As
emails can be intercepted and read, disclosed, or otherwise used or communicated by an unintended
third party, or may not be delivered to each of the parties to whom they are directed and only to such
parties, we cannot guarantee or warrant that emails from us will be properly delivered and read only by
the addressee. Therefore, we specifically disclaim and waive any liability or responsibility whatsoever for
interception or unintentional disclosure of emails transmitted by us in connection with the performance
of this engagement. In that regard, you agree that we shall have no liability for any loss or damage to any
person or entity resulting from the use of email transmissions, including any consequential, incidental,
direct, indirect, or special damages, such as loss of revenues or anticipated profits, or disclosure or
communication of confidential or proprietary information.
You are responsible to notify us in advance of your intent to reproduce our report for any reason, in whole
or in part, and to give us the opportunity to review any printed material containing our report before its
issuance. Such notification does not constitute an acknowledgement on our part of any third party's intent
to rely on the financial statement. With regard to the financial statement published electronically on your
internet website, you understand that electronic sites are a means to reproduce and distribute
information. We are not required to read the information contained in your sites, or to consider the
consistency of other information in the electronic site with the original document.
The audit documentation for this engagement is the property of Anthony Brunson P.A. (Vendor) and
constitutes confidential information. However, pursuant to authority given by law or regulation, we may
be requested to make certain audit documentation available to regulatory agencies or its designee, a
federal or state agency providing direct or indirect funding, or the U.S. Government Accountability Office
for purposes of a quality review of the audit, to resolve audit findings, or to carry out oversight
responsibilities or pursuant to Chapter 119, Florida Statues, Florida's public records law. We will notify
you of any such request. If requested, access to such audit documentation will be provided under the
supervision of Anthony Brunson P.A. personnel. Furthermore, upon request, we may provide copies of
selected audit documentation to the aforementioned parties. These parties may intend, or decide, to
distribute the copies or information contained therein to others, including other governmental agencies.
We will also make the audit documentation for this engagement available to the City upon request and
reasonable notice.
It is our policy to retain engagement documentation for a period of five years after the report release date
or for any additional period requested by any regulatory agency. If we are aware that a federal or state
awarding agency, pass -through entity, or auditee is contesting an audit finding, we will contact the
party(ies) contesting the audit finding for guidance prior to destroying the audit documentation.
To the extent we accumulate any of your original records during the engagement, those documents will
be returned to you promptly upon completion of the engagement, and you will provide us with a receipt
for the return of such records.
The balance of our engagement file, other than the reporting package (including financial statements,
schedule of expenditures of federal awards, summary schedule of prior audit findings, auditors' reports,
and corrective action plan), which we will provide to you at the conclusion of the engagement, is our
property, and we will provide copies of such documents at our discretion and if compensated for any time
and costs associated with the effort.
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
Engagement Administration, Fees, and Other -Continued
The City will indemnify Anthony Brunson P.A., its principal and employees and hold them harmless from
any claims, liabilities, losses and costs arising in circumstances where there has been a knowing
misrepresentation by a member of the City's management. Any such indemnification will be pursuant to
the provisions of and within the limitations of Section 768.28, Florida Statute.
Pursuant to the requirements of the City, Anthony Brunson P.A. maintains $1,000,000 in commercial
general liability insurance; $1,000,000 professional liability coverage, and Workers' Compensation
coverage as required by law. Certificates are attached as Exhibit A.
In the event either party claims a breach of any term of this engagement, the dispute first shall be
submitted to voluntary mediation. If this is unsuccessful, then the dispute will be brought to binding
arbitration conducted under the rules then prevailing of the American Arbitration Association in the City
where this agreement is signed, and the judgment or award of the arbitration shall be binding and
conclusive upon the parties and may be entered in any court having proper jurisdiction.
The cost of voluntary mediation shall be borne equally by both parties. With respect to binding arbitration,
the prevailing party shall recover reasonable attorney's fees and costs.
Anthony Brunson is the engagement partner and is responsible for supervising the engagement and
signing the reports or authorizing another individual to sign them.
We estimate that our audit fee for the fiscal year ended September 30, 2017 a up to an amount of
$65,000, which includes an audit in accordance with the Uniform Guidance and/or the Florida Single Audit
Act, if the City of Opa-Locks is required to undergo during any year of this contract. Our hourly rates vary
ranging from $75 to $325 per hour according to the degree of responsibility involved and the experience
level of the personnel assigned to the audit. The above fee is based on anticipated cooperation from your
personnel and the assumption that unexpected circumstances will not be encountered during the audit.
If additional time is required because of unexpected circumstances or for changes in the requirements of
the Governmental Accounting Standards Board or our professional auditing standards or changes in the
funds structure of the City, we will discuss these circumstances with you and arrive at a new fee estimate
before we incur the additional costs. We agree to provide detailed statements in sufficient detail that will
demonstrate and substantiate the work performed under the terms and conditions of this Agreement.
Our invoices for these fees will be rendered as the work progresses, and are payable on presentation. In
accordance with our firm policies, should any invoices remain unpaid for more than thirty days, we reserve
the right to defer providing any additional services until all outstanding invoices are paid. You agree that
we are not responsible for the impact on the City of any delay that results from such non-payment by you.
Anthony Brunson P.A. recognizes that all amounts received from the City are income and is solely
responsible for declaration of those amounts to the Internal Revenue Service and any other applicable
taxing authorities. Anthony Brunson P.A. (and its employees) shall not be eligible to participate in any
benefit programs that the City maintains for its employees.
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
Engagement Administration, Fees, and Other -Continued
We acknowledge your right to terminate our services at any time for nonperformance, and you
acknowledge our right to resign at any time (including instances where in our judgment, our independence
has been impaired or we can no longer rely on the integrity of management), subject in either case to our
right to payment for charges incurred to the date of termination or resignation.
This letter is effective for the fiscal year ending September 30, 2017. Due to the urgency in connection
with obtaining needed audits for the City of Opa-Locka, the City has the right to agree to an additional
year extension for the fiscal year ending September 30, 2018_pursuant to the terms and conditions of this
Agreement and up to an amount of $65,000 for the hours rates set forth herein. We appreciate the
opportunity to be of service to the City and believe this letter accurately summarizes the terms of our
engagement. If you have questions, please let us know. If you agree with the terms of our engagement
as described in this letter, please sign the enclosed copy and return it to us.
Sincerely,
ANTHONY BRUNSON, P.A.
Anthony Brunson
A/B/kp
REPONSE: This letter correctly sets forth the understanding of the City of Opa-Locka
City Manager
Date
ANTHONY BRUNSON P.A.
FEE EXPLANATION AND AGREEMENT
A. Fee Structure
From time to time, we get inquiries concerning our method of charging fees. This is understandable
since each CPA firm handles fees a little differently and some new clients may not have used a CPA
before. This letter is our tool for communicating our fee structure to our clients and other interested
parties.
B. Basics
All time spent by partners of Anthony Brunson P.A. or their staff members on your matters including,
but not limited to (a) accounting; (b) review work; (c) conferences; (d) report preparation; (e)
research; (f) telephone calls; (g) settlement negotiations; (h) consulting; or (i) tax preparation and
research will be billed at the applicable hourly rates and in sufficient detail that will demonstrate and
substantiate the work performed under the terms and conditions of this Agreement up to an amount
of $65,000.
Each staff member maintains accurate time records, and clients are billed based on actual time spent
on their behalf. Since we sell no products and accept no contingent fees, our time and expertise are
our only source of income.
C. Hourly Rates
A standard hourly rate is set for each staff member based on the criteria of experience and ability. If
no extenuating circumstances exist, clients are billed using standard hourly rates multiplied by the
actual hours worked.
Hourly rates vary substantially among staff members -- currently from a low of $75 to a high of $325
per hour. Accordingly, it makes sense to use less experienced staff members to perform routine
procedures to achieve the best value for our clients.
D. Out -of -Pocket Expenses
Basic overhead costs are included in the hourly rates. Expenses specifically on behalf of a client are
charged to them. Travel, postage, copies, long distance calls, courier services, confirmation related
charges etc. is included in this category.
E. Billings
Billings will be made monthly, but less frequent for limited activity, and are payable in full upon
request. If the account has not been paid within thirty (30) days from the date of invoice, a
finance/interest charge of 1% per month on the unpaid balance could be charged. It is understood
that Anthony Brunson P.A. has the right to defer rendering further services until payment is received
on past -due billings. If action is instituted to collect accountant's fees and cost pursuant to this
Agreement, the undersigned client agrees to pay such sums as the court may fix as attorney's fees
and costs.
F. Termination
We acknowledge your right to terminate our services at any time with or without cause, and you
acknowledge our right to resign at any time (including instances where in our judgment, our
independence has been impaired or we can no longer rely on the integrity of management), subject in
either case to our right to payment for charges incurred to the date of termination or resignation.