HomeMy Public PortalAbout22-006 - additional payment to Marcum LLP relating to the Sept 2020 auditSponsored By: City Manager
RESOLUTION NO. 22-006
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
OPA-LOCKA, FLORIDA, AUTHORIZING THE CITY MANAGER
TO ISSUE AN ADDITIONAL PAYMENT OF TEN THOUSAND
THREE HUNDRED NINETY DOLLARS ($10,390.00) TO MARCUM,
LLP FOR ADDITIONAL SUPPLEMENTAL WORK RELATED TO
COMPLETING THE SEPTEMBER 30, 2020 AUDIT; PROVIDING
FOR INCORPORATION OF RECITALS; PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, on November 22, 2021, the City Commission of the City of Opa-Locka,
("City") passed Resolution No. 21-9942 accepting the proposal from Marcum LLP in
response to RFP No. 21-1115200 for Independent Auditing Services; and
WHEREAS, the City entered into an agreement with Marcum, LLP, to provide
auditing services for FY 2020 and 2021 ("Agreement"), in the amount of Thirty Nine
Thousand, Nine Hundred Ninety -Five Dollars ($39,995.00) per fiscal year; and
WHEREAS, Marcum, LLP has informed the City that the actual hours to complete the
FY 2020 audit will exceed the estimated hours pursuant to the Agreement. Additional
service fees in the amount of Ten Thousand, Three Hundred Ninety Dollars ($10,390.00)
are being requested to include additional time spent by the audit partner, audit manager,
and Senior Auditor for the additional supplemental work. The additional supplemental
work will also modify the time requirements related specifically to completing the
September 30, 2020 audit; and
WHEREAS, the Interim City Manager contends that the proposed supplemental
work is required to complete the September 30, 2020 audit; and
WHEREAS, Marcum, LLP desires to complete the additional supplemental work
necessary for completion of the FY 2020 audit with a flat fee of Ten Thousand, Three
Hundred Ninety Dollars ($10,390.00).
NOW, THEREFORE, BE IT DULY RESOLVED BY THE CITY COMMISSION OF
THE CITY OF OPA- LOCKA, FLORIDA:
SECTION 1. The recitals to the preamble herein are incorporated by reference.
SECTION 2. AUTHORIZATION
The City Commission of the City of Opa-Locka hereby authorizes the City Manager to
issue payment to Marcum, LLP in the amount of Ten Thousand, Three Hundred Ninety
Resolution No. 22-006
Dollars ($10,390.00) for additional supplemental work related in order to complete the
city financial audit ending September 30, 2020.
SECTION 3. SCRIVENER'S ERRORS
Sections of this Resolution may be renumbered or re -lettered and corrections of
typographical errors, which do not affect the intent of this Resolution may be authorized
by the City Manager, following review by the City Attorney, without need of public
hearing, by filing a corrected copy of same with the City Clerk.
SECTION 4. EFFECTIVE DATE
This Resolution shall take effect upon the adoption and is subject to the approval of the
Governor or Governor's Designee.
PASSED and ADOPTED this 13th day of July, 2022.
Veronica J. William yor
TEST:
a Flores, City Clerk
APPROVED S TO FORM AND
LEGAL S i F ` CIENCY:
Bur ette Norri + eeks, P.A.
Moved by: Commissioner Davis
Seconded by: Vice Mayor Taylor
VOTE: 5-0
Commissioner Bass YES
Commissioner Davis YES
Commissioner Dominguez YES
Vice -Mayor Taylor YES
Mayor Williams YES
2
City of Opa-locka
Agenda Cover Memo
Department
Director:
Gerri Lazarre, Finance Consultant
Acting Finance Director
Department
Director
Signature:
.v�
1/6146-2_
Ordinance
Other
City
Manager:
Darvin Williams
CM Signature:
Commission
Meeting
Date:
07.13.2022
Item Type:
(EnterXin box)
Resolution
X
Fiscal
Impact:
(EnterX in box)
Yes
No
Ordinance Reading.
(EnterXin box)
15t Reading
2nd Reading
X
Public Hearing:
(Enter X in box)
Yes
No
Yes
No
X
X
Funding
Source:
Account# :
(Enter Fund & Dept)
Ex:
Advertising Requirement:
(EnterXin box)
Yes
No
X
Contract/P.O.
Required:
(EnterXin box)
Yes
No
RFP/RFQ/Bid#:
X
Strategic
Plan Related
(EnterXin box)
Yes
No
Strategic Plan Priority
Enhance Organizational
Bus. & Economic Dev
Public Safety
Quality of Education
Qual. of Life & City Image
Communication
Area:
Strategic Plan Obj./Strategy:
(list the specific objective/strategy this
item will address)
X
I.
MI
MI
•
•
Sponsor
Name
City Manager
Department:
City Manager
Short Title:
Supplement to External Auditing Services Agreement dated December 21, 2021 related to Request for
Proposal (RFP No. 21-1115200).
Staff Summary:
An RFP for External Auditing Services was approved on December 21, 2021 through RFP No. 21-1115200
awarding the contract to Marcum, LLP.
Additional service fees are being requested because additional supplemental work is modifying the time
requirements related specifically to completing the September 30, 2020 audit. The additional fees being
requested is in the amount of $10,390, to include additional time spent by the audit partner, audit manager,
and Senior Auditor.
Staff believes this is required to complete the September 30, 2020 audit.
Financial Impact - Of the total amount, $6,234 (60%) will be charged to the General Fund, Finance Division,
17-513320, Accounting and Auditing Services, which has $16,777 available, and $4,156 (40%) will be charged
to the Water -Sewer Fund, Utility Billing Customer Service Division 61-513320, Accounting and Auditing
Services, which has $47,399 avaialble.
Proposed Action:
Staff recommends the City Commission approve payment of additional audit fees of $10,390 to Marcum, LLP
in conjunction with the completion of the Fiscal Year 2020 audit.
Attachment:
MARCUM
ACCOUNTANTS • ADVISORS
June 6, 2022
City of Opa-Locka
Attn: Darvin E. Williams, JD, MBA, MPH, Interim City Manager
780 Fisherman Street, 4th Floor
Opa-Locka, FL 33054
Re: Supplement to External Auditing Services Agreement dated December 21St, 2021 related
to Request for Proposals (RFP) 21-1115200
This letter serves as an supplement (all previous terms of the External Auditing Services
Agreement dated December 21, 2021 are still in effect) of Marcum LLP's ("Marcum," the "Finn,"
"we," "us" or "our") understanding of the services we are to provide to the City of Opa-locka,
Florida (the "Organization," , "City" "you" or "your") for the year ending September 30, 2020.
As noted in the External Auditing Services Agreement, if, during the contractual period, additional
Services are needed, the Firm may, at the option of the City Manager, be engaged to perform these
Services.
Supplement Objectives
As a result of AU -C 260, The Auditor's Communication With Those Charged With Governance.
(AU -C 510.09), when the auditor determines that evidence indicates misstatements in the opening
balances might materially affect the current period's financial statements, appropriate extended
procedures are to be performed to determine their effect on the financial statements.
During the performance of the 2020 audit procedures, Marcum was made aware by the City's
finance department of identified numerous material misstatements (approximating $9.5 million -
Governmental Activities and $15.2 million Business -type Activities) related to the City's annual
financial report for the fiscal year ended September 30, 2019. The majority of the misstatements
identified are as a result of the Capital Asset Valuation Report dated April 23, 2021.
As a result of the above, Marcum will request management to inform the predecessor and arrange
for the three parties to discuss the information above, communicate information to the predecessor
that the predecessor needs to consider and perform extended audit procedures related to Capital
Assets for the year ended September 30, 2020.
Additionally, this supplement modifies the "Time Requirements", specifically related to the
September 30, 2020 audit period. It was noted in External Auditing Services Agreement, the City
audit records were to be ready upon acceptance of the proposal and approval by the City Council.
The External Auditing Services Agreement also stated "the audit report, in its final form and
including the management letter, shall be completed no later than June 15, 2022". As a result of
the above material misstatements and pending audit request submitted by Marcum to the City, the
above timeline will not be met and changes to the timing of the engagement are required as per the
City's request.
MARCUAGROUP
MEMBER
Marcum LLP ■ One Southeast Third Avenue ■ Suite 1100 • Miami, Florida 33131 ■ Phone 305.995.9600 • Fax 305.995.9601 • www.marcumllp.com
City of Opa-locka, Florida
June 6, 2022
Page 2
Fees
Marcum will be compensated in accordance with the schedule of fees established in the External
Auditing Services Agreement.
Discounted
Level Hourly Rate fours Fees
Partner $ 320 8 $ 2,560
Manager 255 16 4,080
Senior 125 30 3,750
$ 10,390
Agreement
If you agree with the terms of our engagement, as described in this letter, please sign the enclosed
PDF letter and return to us.
We appreciate the opportunity to be of continued service to the City and believe this letter
accurately summarizes the changes to the External Auditing Services Agreement referenced
above. .If you have any questions, please let us know.
Very truly yours,
Marcum LLP
Moises D. Ariza, CPA, CGMA
Partner
MDA/ep
cc: Gerri Lazarre, CPA, Acting, Finance Director
ACCEPTED
This letter correctly sets forth the agreement of the City of Opa-locka, Florida.
Authorized Signature:
Title:
Date Signed:
Sponsored by: City Manager
RESOLUTION NO. 21-9942
A RESOLUTION OF THE CITY COMMISSION OF THE CITY
OF OPA-LOCKA, FLORIDA, ACCEPTING THE PROPOSAL
FROM MARCUM LLP IN RESPONSE TO RFP NO. 21-1115200
FOR INDEPENDENT AUDITING SERVICES; FURTHER
AUTHORIZING THE CITY MANAGER TO ENTER INTO AN
AGREEMENT, ATTACHED HERETO AS EXHIBIT "A";
PROVIDING FOR ADOPTION OF REPRESENTATIONS;
PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, Request for Proposal (RFP) #21-1115200 was published on
October 10, 2021 for Independent Auditing Services. Three (3) proposals, attached
hereto as Composite Exhibit "A", were received via DemandStar by the City
Manager's Office and forwarded to the City Clerk on November 15, 2021; and
WHEREAS, the RFP evaluation committee met on November 17, 2021 to
review the bid proposals. Marcum LLP received the highest-ranking score among the
evaluation committee ratings; and
WHEREAS, the City of Opa-Locka Audit Committee convened a meeting on
November 18, 2021, where they reviewed the three (3) proposals that were received
pursuant to RFP ' # 21-1115200 and subsequently recommended that the City
Commission select the proposal submitted by Marcum LLP; and
WHEREAS, the City Commission finds it is the best interest of the City to
accept the proposal of Marcum LLP and enter into an agreement for independent
auditing services.
NOW THEREFORE BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF OPA-LOCKA, FLORIDA:
Section 1. ADOPTION OF REPRESENTATIONS: The foregoing whereas
paragraphs are hereby ratified and confirmed as being true, and the same are
hereby made a specific part of this Resolution.
Section 2. AUTHORIZATION: The City Commission of the City of Opa-
Locka, Florida hereby accepts the proposal from Marcum LLP in response to
RFP No. 214115200 for independent auditing services; further authorizes the
City Manager to enter into and execute an agreement with Marcum LLP in the
contract attached hereto as Exhibit "A."
External Audition Services Agreement
THIS :AGREEMENT is entered into this 21 st day of December 2021 between the City of
Opa-Locka.C'City„).and Marcum LLP (hereinafter "Firm")
WHEREAS, the City seeks to retain the services of Firm as an independent contractor to provide
external auditing services; and
WHEREAS, The City is charged with the responsibility of controlling the disbursement and
collecting public funds; and
WHEREAS, the City put forth its Request for Proposals (RFP) 21-1115200 (Exhibit "A" this
Agreement) for External Audit Services; and
WHEREAS, on November 18, 2021, the Audit Committee of the City ranked Marcum LLP as
the top candidate to provide External Auditing Services to the City; and
WHEREAS, Marcum LLP performs auditing services for many governmental entities, including
other cities and is capable of providing high level review services for the City at areasonable cost;
and
WHEREAS, Marcum LLP desires to be associated with the City by performing solicitedservices
as requested in RFP 21-1115200.
NOW THEREFORE, in consideration of the premises and the mutual covenants herein City
and Finn mutually agree as follows:
1. This Agreement shall be effective as of December 21, 2021 and shall terminate no later than
September 30, 2025 (the "Team").
2. The City retains Marcum LLP as an independent contractor to perform External
Auditing Services (hereinafter "Services").
3. Firm shall perform required services in an amount not to exceed the Costs of Services set
forth in'irm's Response to RFP 21-1115200 for Independent Auditing Service (Exhibit "B" to
this Agreement). Said fee shall be the entire compensation for any and all services rendered by
Firm hereunder, except that Firm may be reimbursed for reasonable and minimal expenses
incurred if City approves such expenses in writing in advance of their occurrence or if
additional services are requested from Marcum, as stipulated in Exhibit A.
4. Firm agrees to conduct an evaluation of internal controls, including accounting systems
and specific control procedures and assess the extent to which the controls can be relied uponto
ensure accurate information and compliance with the applicable laws and regulations.
Professional responsibilities of the firm. and City management are stipulated in Exhibit C
„Marcum Engagement Letter".
5. As required by auditing standards generally accepted in the United States (GAAS), the
Finn agrees to perform the requested services consistent with the objectives set forth in the
Exhibit "A", which is the Request for Proposals (RFP) for Independent External. Auditing
Services and Exhibit "B" which is Firm's response and further agrees that the exhibits are
incorporated and otherwise considered a part of this Agreement
6. Firm agrees to furnish to the City with written progress reports at such times and with
such frequency as the City may reasonably request and as specified in the applicable RFP.
7. Firm agrees to use best efforts, attention, knowledge and skill in carrying out Services.
8. Finn acknowledges the importance of timely completing the Services as set forth in this
Agreement and further agrees that time is of the essence in all matters relating to fulfilling
Kling
the obligations of this Agreement.
9. The City shall not have any obligation hereunder to provide the firm or its dependents with
medical,: health, pension or any other employee benefits.
10. Firm acknowledges and agrees that it shall be solely and exclusively its obligation and
responsibility to report to the appropriate governmental agencies and other authorities all
compensation received by Finn hereunder and to report and pay all taxes or impositions
thereon. Firm shall indemnify and hold harmless the City for and against any and all
claims, *atmees, losses or obligations asserted or imposed against the City by any other
entity or person in connection with the paymentor recovery of such sums.
11. The City expressly reserves the right, at any time or for any reason whatsoever, to retain
any other firm to .perform services that are similar or identical to the Services being
performed by Firm.
12. Finn acknowledges that, in the course of performing the Services, it may originate,
develop, receive or otherwise become aware of knowledge and confidential information
concerning the City and such knowledge and information, whether oral or written which is
developed or acquired by, or communicated or delivered to Finn or of which Firm may
otherwise become aware are and shall be and :remain the confidential information of the
City ("Confidential. Information"). The Finn shall not use or disclose any information
concerning a recipient of services under this Agreement for any purposenot in conformity
with state statute and applicable federal regulations. Finn further acknowledges that, in
the course of performing the Services, it may have access to certain other information that
relates, directly or indirectly, to the City or its agents, statistical; business or technical
research, development, trade secrets, processes, formulae, specifications, programs,
software packages, technical know-how, methods and procedures of operation, business or
confidential plans ('Proprietary Information"). This paragraph shall not apply to
appropriately secured public records as defined by Chapter 119, Florida Statutes.
13. Firm agrees to hold such Confidential Information and Proprietary Information in strict
confidence; not to disclose such Confidential Information and Proprietary Information with
others or use the same in any way, commercially or otherwise, except in performance of the
Services at anytime without the prior written consent. of the City; to take all actions
reasonably necessary to protect the confidentiality oftheinformation
and, at termination of this Agreement, upon written request, to return all Confidential
Information and Proprietary Information to the City whether written, printed, machine
readable or inany other form whatsoever.
14. All Firm services provided by Finn are deemed Services done for hire. The City shall be
deemed to be the absolute and unqualified owner of and Firm hereby assigns to the City all
rights, title and interests in and to any and all work product furnished to the City including,
but not limited to, any developments, additions, or enhancements to the City's Proprietary
Information provided by Firm while engaged by the City.
15. The City shall not be under any obligation to use. Firm's naive or give Firm credit of any
kind for any of the Services performed or work product prepared or furnished by Firm, nor
may Firm use the City's name or trademark in any manner, expressly or implied, which
might tend to convey the impression that Firm's services indicate an endorsement by the
City of Firm's services, without the prior written consent of the City.
16. It is understood and agreed that Finn's relationship with the City is not to exercise
supervision of Firm in the performance of the Services nor shall the City require Firm's
compliance with detailed orders or instructions, it being intended that Finn shall serve as
an independent contractor to the City with the time, manner and place of performance of
the obligations required by this Agreement, m the sole discretion and judgment as an
independent Firm.
17. All working papers and reports must be retained, at the auditor's expense, for a minim`
of three (3) years after the completion date of the audit, unless the firm is notified in
writing by the City of the need to extend the retention period. In accordance with Florida
Statutes and federal and state law, the auditor will be required to make their working
papers available, upon request, to the following parties or their designees: City of Opa-
Locke; and any federal and state governmental entities; US. General Accounting Office
(GAO); parties designated by the federal or state governments or by the City of Opa-Locka
as part of an audit quality review process; Auditors of entities of which the City of Opa-
Locka isa sub -recipient of grant funds. In addition, the firm shall respond to the reasonable
inquiries of successor auditors and allow successor auditors to review working papers
relating to matters of continuing accounting significance.
18. Firm acknowledges and agrees that it does not have the authority to bind or attempt to bind
the City by contract or otherwise, or to represent to third parties that Firm has any right to
so bind the City or to use the City's name in any connection of or for any purpose
whatsoever.
19. Finn shall not commence work under this contract until it has obtained all insurance
required under this paragraph and such insurance has been approved by the City
Administrator. Certificates of insurance; reflecting evidenceof the required insurance, shall
be filed with the City Manager's Office prior to the commencement of the work. These
Certificates shall contain a provision that coverages afforded under these policies will not
be canceled until at least thirty days (30) prior written notice has been given to the CITY.
Policies shall be issued by companies authorized to do business under the laws of the State
of Florida. Insurance shall be ` in force until all work required to be performed under the
terms of the Contract is satisfactorily completed as evidenced in writing by the
CITY. Insurance shall be obtained for the amounts consistent with RFP 21-1115200
20. The CONTRACTOR shall hold the CITY, its agents, and employees, harmless on account
of claims for damages to persons, property or premises arising out of the operations to
complete this Agreement and name the CITY as an additional insured under their policy.
The CITY reserves the right to require any other insurance coverage it deems necessary
depending upon the exposures.
21. The firm agrees to release the CITY from and against any and all liability and responsibility
in connection with the above -mentioned services to be provided by CONTRACTOR. The
Firm further agrees not to sue or seek any money or damages from CITY in connection
with the above -mentioned matters.Firm further agrees to indemnify and hold harmless the
C1TY, its trustees, elected and appointed officers, agents, servants and employees, from
and against any and all claims, demands, or causes of action of whatsoever kind or nature,
and the resulting losses, costs, expenses, reasonable attorneys' fees, liabilities, damages,
orders, judgments, or decrees, sustained by the CITY or any third party arising out of, or by
reason of, or resulting from the Firm's negligent acts, errors, or. omissions.
The parties recognize that various provisions of this Agreement, including but not
necessarily limited to this paragraph, provide for indemnification by the Firm and that
specific consideration may be necessary. The parties therefore agree that the sum of Ten
Dollars and 00110.0 ($10.00), receipt of which is hereby acknowledged, is the specific
consideration for such indemnities, and the providing of suchindemnities is deemed to be
part of the specifications with respect to the services to be provided by Firm. Furthermore,
the parties understand and agree that the covenants and representations relating to this
indemnification provision shall serve the term of this Agreement and continue in full force
and effect as to the party's responsibility to indemnify. This Agreement is personal in
nature to Firm and the rights and obligations of Firm may not and shall not be assigned,
subcontracted, delegated or otherwise transferred by Firm by operation of law or
otherwise.
22. In the event that any one or more of the provisions of this Agreement shall be held to be
invalid, the remaining provisions of the Agreement shall not in any way be affected or
impaired thereby.
23. This Agreement shall be governed by and construed in accordance with the laws of the
State of Florida applicable to contracts made and to be performed in such State. Venue shall
be in Miami -Dade County. The partiesfurtlzer agree to abide by all applicable Federal and
State law and applicable City policies.
24. If the auditor fails to properly perform the conditions of the contract, in the sole opinion of
the City, the City will communicate to the auditor in writing the problem(s) that exist. The
auditor will have up to fifteen (15) calendar days to rectify the problem(s). If the same or
other problems persist or recur the City may immediately cancel the contract by advising
the firm in writing.
25. If the proposer fails to perform the conditions of the agreement as specified and as
interpreted by the City Manager, the City Manager shall provide written notice of such
violation. The City reserves the night to terminate the agreement for convenience without
cause, with five (5) working days' written notice and as otherwise provided by RFP 21-
1115200. Termination and cancellation of any agreement will not relieve the proposer for
work which was to be completed prior to the termination or cancellation of the agreement.
The City Commission shall have the right to terminate the agreement in the event the
Proposer files any petition or proceeding for bankruptcy relief or is adjudicated to be
bankrupt or insolvent or fails to pay just debts as they ordinarily become due. This
agreement may notbe terminated by the proposer unless otherwise provided in the contract.
26. All agreements and covenants herein are severable, and in the event any one of them shall
be held to be invalid by any competent court, this Contract shall be interpreted as if such
invalid agreements or covenants were not contained herein.
27. If a court of competent jurisdiction holds the City of Opa-Locka liable for certain tortuous
acts of its agents, officers, or employees, such liability shall be limited to the extent and
limit provided in 768.28,. Florida Statutes. This provision shall not be construedas a waiver
of any right or defense that the City may possess. The City specifically reserves all rights
as against any and all claims that may be brought as a result of this Contract.
28. Firm agrees to maintain independence as a Certified Public Accounting fum., and duly
license under Florida Statutes Chapter 473 to practice in the State of Florida during the
term of this Agreement.
29. It is the intention of the parties that this Agreement supersedes all prior agreements,
representations and understandings and that it shall not be modified or amended in any
respect except in a writing signedby both parties. In the event of any inconsistency,
conflict or ambiguity as to the rights and obligations of the parties under this Agreement
and Exhibit "C", the terms of this Agreement shall control and supersede any such
inconsistency, conflict or ambiguity.
City ofOpa:Locka ("City")
-44.0111011111.
�I-itge3_2
Tax ID number, Marcum LLP
/2- 2../ 20Z/
Dated
MARCUM
ACCOUNTANTS ADVISORS
Exhibit C Marcum Engagement Letter
The City of Opa-locka has requested an audit of its. financial statements of the governmental
activities, the business type activities, each major fund, and the aggregate remaining fund
information of the City of Opa-locka, Florida (the "City"), as of September 30, 2020 and 2021,
and for the years them ended;; and the related notes to the financial, statements, which collectively
comprise the City's basic financial statements.
In addition, ifapplicable, we will audit the entity's compliance over major federal and state award
programs for the year ended September 30, 2020 and 2021. We are pleased to confirm our
acceptance and our understanding of this audit engagement by means of this letter. Our audits will
be conducted with the objectives ofour expressing an opinion on each opinion unit and au opinion
on compliance regarding the entity's major federal and state award programs.
Accounting Standards generally acceptedin the United States of America require that certain
required supplementary information ("RSP'), such as management's discussion and analysis
("MD&A")-be presented to -supplement the basic financial statements. Such information although
not apart 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 RSI in accordance with auditing
standards generally accepted- in the Unitee States of America. These limited wi
ll
" ill
consist primarily of inquiries of management regarding their methods of measurement and
presentation, and comparing the information for consistency with management's responses to our
inquiries. We will notexpress an opinion or provide any font of assurances on the RSL The
following RSY is required by accounting principles generally accepted in the United States of
America. This RSI will be subjected` to certain limited procedures but Will not be audited:
1. Management's Discussion and Analysis
2. Budgetary Comparison Schedules
3. Schedule of Ike. City's Proportionate Share attic Net Pension Liability and Coutnibutions
FRS and MS
4. Schedule of Changes in the City's Total OPEB Liability and Related Ratios
Supplerientaryinformation other than RSI will accompany the City's basic financial statements.
We will subject the following;supplementary information to the auditing procedures applied in our
audit of the basic financial statements and certain additional procedures, including comparing and
reconciling the supplementary information to the underlying accounting andotber records used to
prepare the financial statements or to the financial statements themselves, and additional
procedures in accordance with auditing standards generally accepted in the United States of
America. We intend to provide an: opinion on the following supplementary information' in relation
to the financial statements<as a whole:
- Combining and Individual Fund (Financial Statements and Schedules
gt
MARCUMGROUF
' eueER-
MarcumLtm One Southeast ThfrdAvenue • Suite 1100*Miami. Florida33131.Phone 305.995.9600• fax 305.9959601•WWW.marcumllncom
City of Opa-lacka Florida
Page 2
Schedule of Expenditures of Federal Awards and State Finenjjal Asgisjapce
We will subject the schedule of expenditures offederal awards and state:fmancial assistance to the
auditing procedures applied in our audit of the basic financial statements and certain additional
procedures, including comparingand reconciling theschedule to the underlying: accounting and
other records used to prepare the financial statements or to the financial statements themselves,
and additional procedures in accordance with auditing standards generally accepted in the United
States of America. We intend to provide an opinion on whether the schedule of expenditures of
federal awards and state financial assistance is presented fairly in all material respects in relation
to the financial statements as :a whole.
Also, the document we submit to you will include the: following other additional information that
will not be subjected to the auditing procedures applied in our audit of the financial statements,
and our auditors' report will not provide an opinion or any assurance on that other information:
Inntroductoxy Section
Pata Collection Forge,
Prior to the completion of our engagement, we will complete the sections of the Data Collection
Form that are our responsibility. The form will summarize our. audit findings, amounts and
conclusions. It is management's -responsibility to submit a reporting package including financial
statements, schedule of expenditure of federal awards and state uncial assistance, summary
schedule of prior audit findings and corrective action plan along with the Data Collection Form to
the federal audit clearinghouse. The financial repoithlg package: must be text searchable,
unencarypted, and unlocked. Otherwise, the reporting package will not be accepted by the federal
audit clearinghouse. We will assist you in, the electronic submission and certification. You may
request from us copies: of our report for you to include with the reporting package submitted to
pass -through entities:
The Data Collection Fore is required to be submitted within the earlier of 30 days after receipt of
our auditors' reports or nine months after tbe end of the audit period, unless specifically waived
by a federal cognizant or oversight agency for audits. Data Collection Forms submitted untimely
are one of the factors in, assessing programs at a higher risk.
Audit: of the Financial Statements
• We will conduct our audit in accordance with auditing standards generally accepted in the
United States of America (GAAS), the standards applicable to- financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States of
America; the audit requirements of Title 2 U.S. Code of Federal Regulations . (CFR) Part 200,
Uniform Administrative: Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance), Audits of States, Local Governments and Non Profit
Organizations and: Florida Single Audit Act and Chapter 10.550 Rules of the Auditor General.
Those standards, the Uniform Guidance and the Florida Single Audit Act and Chapter 10350
City of Opa: locka, Florida
Page 3
Rules. of the Auditor General require that we plan and perform the audit to obtain reasonable
assuranceabout whether the basic financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors'
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to error, fraudulent financialreporting, misappropriation of assets, or
violations of laws, governmental regulations, grant or
agreements, contractual agreements.
An audit also meludes evaluating the ' appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as wails evaluating the,
overall presentation of the financial statements if appropriate, our procedures will therefore
include tests of documentary evidence that support the transactions recorded in theamounts, tests
of the physical existence of inventories, and direct eoz nation of cash, investments,` and certain
other assets and liabilities by correspondencewith creditors and'fionanciai: institutions: As part of
our audit process, we will request written representations from your attorneys, and they may bill
you for.: responding. At the conclusion: of our audit, we will . also request certain :written
representations -from you about the financial statements and related matters.
Because ofthe <inherent limitations of an audit, together with the inherent limitations of internal
control; an unavoidahle xisk:that some material misstatements or noncompliance (whether caused.
by WRVS; fraudulent financial reporting, misappropriation of assets, detected abuse, or violations
of laves or governmental regulations) may not be detected exists, even though the audit is properly
planned and peifo ed in accordance with U.S. GAAS and Government Auditing Standards of
the Comptroller Genteel of the '.United .States of America, the Single Audit Act Amendments of
1995, the provisions of OMB Uniform Guidance and Florida Single Audit Act and Chapter 10.550
Rules of the Auditor General. Please note that the determination of abuse is subjective and
Government Auditing Standards does not reqwre auditors to detect abuse.
In making our risk assessments, we consider mtetnal control relevant to the entity's preparation
and fair presentation. of the financial statementsin order to design audit procedures that are
appropriate in the circumstances; but not for the purpose ,of expressing an opinion an the
effectiveness of the entity's: internal control. However, we will communicate to you in writing
concerning any significant deficienciesor material, weaknesses in`inte nal control relevant to the
audit of the financial statements that we have identified during the audit. Our responsibility as
auditors is, of course, limited to the Period covered by our audit and does not extend to any other
periods.
We will issue a written report• upon completion of our audit of the City's basic. financial statements.
Our report will be addressed to the governing body of the City. We cannot provide assurance that
unmodified opinions will be expressed, _Circumstances may arise in which it is necessary for us
to modify our opinions, add an emphasis -of -matter or other -matter paragrapb(s), or withdraw from
the engagements.
City of Opa-locica, Florida
Page 4
In accordance with the requirements of Government Auditing Standards, we will also issue a
written report describing the scope of our testing over internal control over financial reporting and
over compliance with laws, regulations, and provisions of grants and contracts, including the
results of that testing. However, providing an opinion on internal control and compliance over
financial reporting will not be an objective of the audit and;therefore, no such opinion will be
expressed
Our responsibility as auditors is limited to the Period covered by our audit and does not extend to
any other periods or any losses. that might be incun'ed during any later periods for which we are
not engaged as auditors.
Audit of Maier yogi am Con cg
Our audit of the City's major federal and state award programs compliance will be conducted in
accordance with therequirernents of tile Single Audit Act, as amended; the Uniform Guidance and
Florida _Single Audit Actand alaptcr 10.550 Rules of the Auditor General, and will include tests
of accounting records, a determination of mayor programs and projects in accordance with the
Uniform Guidance, the Florida Single AudrtAct and Chapter 10:550 Rules of the Auditor General
and other procedures we consider necessary to enable eus to express such an opinion on major
federal and state award program complianceand to render the requrred:reports. We cannot provide
p ni nuance will be .expressed. Cir tan may arise assvcasnce that aai`untnodrfed opinion ' on
in wluch.it is necessary for us 'to modify our opinion: or withdraw from the engagement.
The Uniform 'Guidance and Florida Single Audit Act and Chapter 10.550 Rules of the Auditor
General requires that we also plan and perform the audit to obtain reasonable assurance about
whether` the entity has complied' with applicable laws and . regulations and the provisions of
contracts and grant agreements applicable. `to major federal and state award .prograrns. Our
procedures will consist of determining major federal._ programs, and state projects and performing
the applicable procedures described m the US, Office of Management. and Budget OMB
Compliance:. Supplement and Florida Single Audit Act and Chapter 10.550 Rules of the Auditor
General for the types of compliance requirements that could have a direct and material effect on.
each of the entity's major programs/projects. The purpose of those procedures will be to express
an opinion on the entity's compliance with > requirements applicable: to each of its major
programs/projects is our report en compliance issued pursuant to the Uniform Guidance and
Florida Single Audit Act and Chapter 10.550 Rules of the Auditor General.
Also,as required by the Uniform Guidance and Florida Single Audit Act and Chapter 10.550 Rules
of the Auditor General, we will perform tests of controls 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 of the entity's major federal and
state award programs. However, our tests will be less in scope than would be necessary to render
an opinion on these controls and, accordingly, no opin ion will be expressed in our report.
City of Opa:locka, Florida
Page 5
We will issue a report on compliance: that will include an opinion or disclaimer of opinion
regarding the entity's major federal and state award programs, and a report on internal controls
over compliance that will report any significant deficiencies and material weaknesses identified;
however, such report will not express an opinion on internal control.
Management's Responsibilities
Our audit will be conducted on the basis that management and those charged with governance
acknowledge and understand that they have responsibility:;
1. For the preparation and Fair presentation of the financial statements in accordance with
accounting principles generally accepted in the United States of America;
2. Preparation and drafting of the City's financial statements, inclusive of footnotes and related
schedules:
3. For the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error;
4_ For identifying, in its accounts, all federal and state awards received and expended duringthe
period and the federal programs and state projects under which they were received, including
federal and state awardsand funding increments received'; in accordance with the Uniform
Guidance and Florida Single Audit Act and Chapter 10350 Rules of the Auditor General;:
5. For maintaining records that adequately identify the source and application of funds for
federally funded activities;
6. For preparing the schedule of expendituresof federal awards and state financial assistance
(including notes and noncasb assistance received) in accordance with the Uniform Guidance
and Florida Single: Audit Act and Chapter 10.550 BOLOS of the Auditor General;
7. For the design, implementation, and :maintenance of internal controlover federal andstate
awards;
8 For establishing and maintaining effective internal control over federal and state awards that
provides reasonable assurance that the nonfederal entity is managing federal and state awards
in compliance with federal statutes, regulations, and the terms and conditions of the federal
and state awards;
9. For identifying and ensuring that the entity complies with federal statutes, regulations, and the
terms and conditions of federal and state award o pr grams' and implementing systems designed
to achieve compliance with applicable federal statutes, regulations, and the terms and
conditions of federal and state award programs;
10. For disclosing accurately, currently, and completely the financial results of each federal and
state award in accordance with the requirements of the award;
11_ For identifying and providing report: copies of previous audits, attestation engagements, or
other studies that directly relate to the objectives of' the audit, including whether related
recommendations have been implemented;
City of Opa-locka; Florida
Page 6
12. For taking prompt action when instances of noncompliance are identified;
13. For addressing the findings and recommendations of auditors, for establishing and maintaining
a process to track the status of such findings and recormmendat ohs and taking corrective action
on reported audit findings from priorperiods and preparing a summary schedule of prior audit
findings;
14. For following up and taking corrective action on current year audit findings and preparing a
conceive action plan for such findings;
15. For submitting the reporting package and data collection forme to the appropriateparties,
16. For making the auditor aware of any significant contractor relationships where the contractor
is responsible for program compliance;
17. To provide us with:
a. Access to all information of which management is aware that is relevant to the preparation
and fair presentation of the financial statement, and: relevantto federal and state award
programs, suck as records, documentation, and other matters;
b. Additional information that we may request from management for the purpose of the audit;
c. Unrestricted access to persons within the entity from ;whom we determine it necessary to
obtain audit .evidence.
18. For adjusting the financial statements to correct material misstatements and confirming to us
inthe management representation letter that the effectsof any, uncorrected misstatements
aggregated by us during the : current engagement; and pertaining to the current year period(s)
under audit are immaterial, both individually and in the aggregate, to the financial statements
as a whole;
accounting princi les, and
19: Foi maintaining adequate records, selecting and applying p
safeguarding assets; -
20. For informing us of any known or suspected fraud affecting the entity involving management,
employees with significant role in internal control and others where fraud could have a material
effect on compliance;
21. For theaccuracy and completeness of all information. provided,
22. For taking reasonable measures to safeguard protected personally identifiable and other
sensitive information; and
23. For confirming your understanding of your responsibilities as defined in this letter to us in your
management representation letter.
With regard to the schedule ofexpenditures of federal awards and state financial assistance referred
to above, you .acknowledgeand understand your responsibility (a) for the preparation of the
schedule of expenditures of federal awards and state financial assistance in accordance with the
Uniform Guidance and Florida Single Audit Act and Chapter 10.550 Rules of the Auditor General,
(b) to provide us with the appropriate written representations regarding the schedule of
expenditures of federal awards and state financial assistance, : (c) to include our report on the
City of Opa-locks, Florida
Page 7
schedule of expenditures offederal awards and state financiad assistance in any document that
contains the schedule of expenditures of federal: awards and state financial assistance and that
indicates that we have reported on such schedule, and (d) to present the schedule of expenditures
of federal awards and state financial assistance with the audited financial statements, or if the
schedule will not be.presented with the audited financial statements, to make the audited financial
statements readily available to the intended users ofthe schedule of expenditures of federal awards
and state financial assistance no later than the date of issuance by you of the schedule and our
report thereon.
At the conclusion of our audit, we will request certain written representations from you that, among-
other things, will confirm management's responsibility for the preparation of the financial
statements in accordance with. CxAAP, attesting to the completeness and tiuthfiilness of
representations and disclosures made to us during the course of our work, the completeness and
availability of all minutes ofthe Board and committee meetings, and, to the best ofyour knowledge
and belief; the absence of irregularities: involving management or those employees who have
significant roles in the City's internal control structure. Management is also responsible for
adjusting the financial statements to correct misstatements and for confimning to us in the
representation letter that the effects of any uncorrected misstatements aggregated by us during the.
current engagement and pertaining to the audited financial statements are immaterial, both
individually and in the aggregate, to the financial statements as a whole. Any assistance provided
by usin preparing the financial statements, adjusting entries or disclosures does not decrease
management's responsibility to assure that the result is not misleading. Further, you are
responsible for designating a qualified management -level individual to be responsible and
accountable for overseeing any such services. The management representation letter must be.
signed and returned to us before we will release our auditors' report.
Professional: standards prohibit us from being the sole host and/or the sole storage for your
financial and non -financial data. As such, it is your responsibility to maintain your original data
and records and we cannot be responsible to maintain such original information. If you are missing
any documents` or workpapers front our prior years' engagements (if _applicable), it is your
responsibility to inform us. By signing this engagement letter, you affirm that you have all the
data and records required to make your books and records complete.
Communication with Those Charged with Governance
As part of our engagement, we are responsible for con nunicating significant matters related to
the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the
financial reporting process as well as other matters webelieve should be communicated to those
charged with governance. GAAS does not require the auditor to design procedures for the purpose
of identifying other matters to communicate with those charged with governance.; Such matters
include, but are not limited to, (1) the initial selection of and changes in significant accounting
policies and their application; (2) the process used by rnanagemerd is formulating particularly.
sensitive accounting estimates and the basis for our conclusions regarding the reasonableness of
those estimates; (3). all passed audit adjustments; (4) any disagreements with management, whether
or not satisfactorily resolved, about matters that individually or in the aggregate could be
City of Opa-locka, Florida
Page 8
significant to the financial statements or our report; (5) our views about matters that were the
subject of management's consultation with other accountants about auditing and accounting
matters; (6) major issues that ware discussed with management in connection with the retention of
our services, including, . among other matters, any discussions regarding the application of
accounting principles and auditing standards; (7) serious difficulties that we encountered in dealing
with management related to the performance of the audit; and (8) matters relating to our
independence as the City's auditors.
Auditors' Report and Reproduction
We will issue a written report upon completion of our audit of the City's financial statements. Our
report will be addressed to those charged with governance. Circumstances may arise in which our
report may differ from its expected form and content based on the results of our audit. Depending
on the natureof these circumstances, it maybe necessary for -us to modify our opinion, add an
emphasis -of -matter or other -matter paragraphs) to our auditors' report. If for any reason, we are
unable to complete the audit or we are unable to form or have not formed an opinion,: we may
decline: to express an opinion or decline to issue a report as a result of the engagement. If in our.
professional judgment, the circumstances regnire us to do so, we may resign from the engagement
prior to completion.
If you intend to publish or otherwise reproduce the financial statements and/or make reference to
our Finn, you agree that the City's management will provide us with a draft for our review and
approval before disclosure, inclusion or incorporation by reference of any of our reports or the
reference to Marcum before such document or information is published, printed or distriibute&
You also agree to provide us with the final reproduced material for our approval before it is
distributed. Inn addition, to avoid un necessary -delay or misunderstanding, you agree to provide us
timely notice of your intention to issue any such document
With regard to the electronic dissemination of the City's financial statements, including financial
statements published electronically on the City's website, we are not required to read the
information contained in those sites or to consider the consistency of other information in the
electronic site with the original document. However, you agree that you will. notify Marcum and
obtain our approval prior to including any of our reports on any electronic site.
Ass = ce Rv Yqut Person nel
We will ask that your personnel, to the extent possible, prepare required schedules and analyses,
and make selected invoices and other required documents available to our staff. This assistance
by your personnel will serve to facilitate the progress of our work and minimize our time
requirements.
You acknowledge that the City's confidential information may be transmitted to us through an
information portal or delivery: system established by us or on our behalf. You shall notify us in
writing of your employees, representatives, or other agents to be provided access to such portal or
system; upon the termination of such status, you shall immediately .notify us in writing. You
City of Opa.-locka, Florida
Page 9
acknowledge that you are responsible for the actions of your current and former employees,
representatives, or other agents in connection with the transmission of your information. During
the course of the engagement, we may communicate with you or your personnel via e-mail, and
you understand that communication in those mediums involves a risk of misdirected or intercepted
communications:.
$acke round Ckecks
As a matter of our Firm policy, we may perform. background checks, on potential clients and/or on
existing clients, on an asrdeten pined basis. The tenons and conditions of this engagement are
expressly contingent upon the satisfactory completion of our : investigatory procedures and we
reserve the right to withdraw from any relationship should information which we deem to be
adverse come to our attention. The results of all background :checks and other investigatory
procedures are submitted: to, andreviewed by, our Firm's Client Acceptance Committee,
Predecessor Auditor
Before formally accepting this engagement, = we are, :inquired by auditing standards: generally
accepted in the United States of America to make certain communications with your predecessor
auditor._' Soon after our appointment as your new auditors; we will ; request your pemaission to
contact your predecessor auditor,. and they will require your :authorization to respond fully to our
p working papers held by the predecessor auditor:.
inquiries and to provide us with copies of certain, -
Our continued;aeceptance of *le engagement is subject to the results of such communication. We
will notify you- immediately if we become aware of anything from your predecessor auditor that
results in our not being able to continuethis engagement and ;requiring us to resign from this
engagement.
Independence
Professional standards require that a firm and its members maintain independence throughout the
duration of the professional relationship with a client In order to preserve the integrity of our
relationship, no offer employment shall be discussed with any Marcum professionals assigned
to the audit, including within the one-year period prior tothe commencement of the year-end audit,
and through the date of issuance of our audit report. Pursuant *0 protsstona1 standards, should
such an offer of employment be made, or employment commences during the indicated tune
period, we will consider this an indication that our independence has been compromised. As such,
we may be required to recall our auditors' report due to our lack of independence. hi the event
additional work is required to satisfy independence requirements, such work will be billed at our
standard hourly rates.
Confidentiality/Access to Working Papers
The Firm is required to undergo a "Peer Review" every three years.: During the course of a Peer
Review engagement, selected working papers and financial reports, on a sample basis, will be
inspected by an outside party on a confidential basis. Consequently, the accounting andfor auditing
City of Opa locka, Florida
Page 10
work we pecfonned for you may be selected. Your signing this letter represents your
acknowledgement and permission to allow such access should your engagement be selected for
review.
As .a resultof ourprior or future services to you, we may berequired or requested to provide
information or documents to you or a third party in connection with a legal or administrative.
proceeding (including a grand jury investigation) to which we are not a party. If this occurs, we
shall. be entitled to compensation for our time andreimbursement for our reasonable out-of-pocket
expenditures (including legal fees) in :complying with suchrequest or demand. This is not
intended, however, to relieveus of our duty to observe the confidentiality requirements of our
profession.
Third -Party Service Prnviidei
Marcum may use its affiliates, subsidiaries, Marcum related parties: and/or third parties, (e.g..
Confi>mation.com -and Bloomberg Professional Services) including contractors, subcontractors
and cloud-based'service:providers, in each case within or outside of the United States (each, a
"Subcontractor"); in connection with the provision of services and/or for internal, adtninist .Live
and/or regulatory: compliance purposes. You agree that Marcum may provide confidential and
other information Marcum receives in connection with this averment to Subcontractors for such
purposes. Marcum maintains >internal policies, procedures and safeguards to protect the
confidentiality- ofyour information and Marcum :will romaine responsible to you for the protection
of such information and services performed by such Subcontractors as provided herein.
Monte Resolption rrprAgg. aiyer of:July Trull and: 3uriisdictign and Venue for Anv
,and AUDi:mute, Umiet-Thislegagerogialetigr awl G+pr►ernina TAR
AS A MATERIAL INDUCEMENT FOR US TO ACCEPT THIS ENGAGEMENT AND/OR.
RENDER THE SERVICES TO THE ORGANIZATION IN ACCORDANCE WITH THE
PROVISIONS OF THIS ENGAGEMENT. LETTER:
This Firm and the City each; hereby browingly, voluntarily and intentionally waive any right
either may have to a trial by jury with respect to any litigation basedhereon,: or arising out
of, ;under or in connection.::with this engagement . letter _and/or the services' provided
hereunder, or any course of conduct, course of dealing, statements (whether verbal or
written) or actions of either party.
This Firm and the Clityeach.exprely.agree and acknowledge that tite Circuit Court of the
nth Judicial Circuit, it and for Miami -Dade County; Florida, and the Unwed States District
Court for the Southern ,District of Florida, shall each have exclusive and sole jurisdiction
and venue for any respective state or federal actions arising from, relating to or : in
connection with this engagement letter, or any course of conduct, course of dealing,
statement or actions` of either party arising after the date of this engagement letter.
City of Opa-locks, Florida
Page 11
The terms and provisions oft is engagement letter, any 'course of conduct, course of dealing
and/or action of this Firm and/or the City and our relationship with you shall be governed
by the laws of the State of Florida to the extent said laws are not inconsistent with the Federal
Securities Laws and Rules, Regulations and Standards there under,
We acknowledge your right to terminate our services at any time, 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 all direct and indirect charges including out-of-pocket expenses mounted
through the date of termination or resignation or thereafter as circumstances and this agreement
may: require, plus applicable interest; costs, fees and attorneys' fees.
;.NATATION OF,LIABILUY
You agree that our liability arising from or relating to our services shall not exceed the
total anwunt paid by you for the services described .herein.:This shall be your exclusive
remedy.
No action, regardless of form, arising out of the services rnrder this agreement may be
brought byyou more than one year after the date the last services are provided under
this agreement
Non-Attest/Nen-Audit'Services
If we perform .non -attest services (considered.additional services), we Will not assume management
responsibilities on behalf of the City. However, we will provide advice and recommendations to
assist management of the City in per.fomung its responsibilities.
The City's management is responsible for. (a) making all management decisions and performing
all management functions; (b) assigning a competent individual to oversee any non -attest services;
(c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility
for the results of the services performed; and (e) establishing and naaintaimng internal controls,
including monitoring ongoing activities.
We are prohibited by professional standards from preparing source documents and authorizing or
approving transactions. Accordingly, management must determine: and approve all transactions
including appropriate account classifications. As part of our engagement, we may propose
standard, adjusting or correcting journal entries to the fuaacial statements. You are responsible
City of Opa-locks, Florida
Page 12
for reviewing the entries and understanding the nature of any proposed entries and the impact they
have on the financial statements.
The services cannot be relied on to detect errors, fraud or illegal acts that may exist. However,we.
will inform you of any material errors, fraud or illegal acts that come to our attention, unless they
are clearly inconsequential. In addition, we have no responsibility to identify and communicate
significant deficiencies or material weaknesses in the City's internal control as part of a non-
attest/non-audit service engagement.
OhherServices
We are always available to meet with you and/or other executives at various times throughout the
year to discuss current business, operational, accounting and auditing matters affecting the City:
Whenever you feel such meetings are desirable, please let us know; we are prepared to provide
services to assist you m any of these areas. We will also be pleased, at your request, to attend the
rneetiwgs of the City's Commission.
Additionally, if desired by the City, Marcum can assist .with. , the community redevelopment agency
(CRA) stand-alone audit as a separate engagement A separate CRA engagement letter describing
the scope, fees, and limitations of such services will be provided. Chapter 2019-163; Laws of
Florida,; amended Section 163;387(8), ;Florida ` Statutes, to require that each community
redevelopment agency (CRA) mectal the specified $100,000 threshold for a separate
audit and that theresultant audit. report ; accompany the county or municipality annual financial
report filed with the Department of Financial Services (see Sections 163.387(8Xc) and
218.32(3)(b), Florida Statutes). In addition, Chapter 2021-116, Laws of Florida, amended Section
218.39(1)(h), Florida Statutes, to require the separate audit to be filed with the Auditor General.
Timeline
Marcum's engagement endson the earlier of termination (including without limitation, our
resignation or dechning to issue a report or other work product) or Marctun's delivery of its report.
Any follow-up services that might be required will be a separate, new engagement. The terms and
conditions of that new engagement wilt be governed by a new, specific engagement letter for that
service.
We understand and agree that the contract price is the Bump: sum of $39,995 per fiscal year to
furnish the work complete. Our price willnot be adjusted unless the City changes the scope of the
requested service after the contract date.' Our invoices for these_ `fees will be rendered as the work
progresses and are due and payable upon presentation_: In the event that you disputeany of the
fees or expenses on a specific invoice, you agree to notify us within twenty (20) days of receipt of
the invoice of such dispute. If you fail to notify us within the twenty (20) day period, your right
to dispute such invoice will be waived. Prior to the commencement of the services described
above, any past due balances are required to be paid in full. In accordance with our Finn policies,
City of Opa-locka, Florida
Page 13
should any invoice remain unpaidfor more than thirty (30) days, we reserve the right to defer
providing any additional services until all outstanding invoices are paid in full. Nothing herein
shall be construed as extending the due date of payments required under this agreement, and you
agree that we are not responsible for the impact on the City of any delay that results from such
non-payment by you.
To the extent that certain circumstances arise during. the engagement, .(e.g. changesto the timing
of the engagement at your request, changes in the responsibility and availability of the City's
accounting personnel, City management not completing required management tasks as stipulated
by the RIP and this engagement letter, and changes in auditing requirements set by regulators),
our fee may be significantly affected and additional fees may be necessary. Additional fees and
services provided beyond the descnhed scope of services will be discussed with you before
providing those services. Our invoices for these fees will be rendered as the work progresses,
and are due and payable upon presentation. Prior to the commencement of the services described
above, any past due balances are required to be paid m full The parties shall abide by the Local
Government Prompt Payment Act, FL SS. 218.70218.80.
Rublic Records.
Marcum shall: comply wiith The Florida Public Records Act as follows:
IF MARCUM'HAS `QUESTIONS REGARDING THE APPLICATION. OF CHAPTER 119,.
FLORIDA STATUTES, TO MARCUM'S DUTY TO PROVIDE' PUBLIC RECORDS
RELATING TO THIS CONTRACT, CONTACT THE CUSTOBI0l OF PUBLIC
RECORDS;
Custodian of Public: Records:Joanna'Flores CITY CLERK
Mailingaddress 780 Fisherman Street, 4, Floor, Opa-locka, FL 33054
Telephone namber :305.6611-4611
Email: jfloressooa1ockafl:eov
agurawas
It is hereby understood and agreed that this engagement is being undertaken solely for the benefit
of the City and that no other person or entity shall be authorized toenforce the terms of'tlns
engagement. The undersigned represents and warrants that it has the requisite authority and
consents to enter into and perform this Agreement and the obligations herein for and on behalf of
the City.
If you agree with the terms of our engagement, as describedin this letter, please sign this PDF
version of the engagement letter and return it to us by e-mail
flour Client Acceptance Committee decides not to accept this .engagement for any treason, then we
will inform you immediately in writing.
City of Opa-locks, Florida
Page 14
Moises D. Ariza, CPA, CGMA is the Engagement Partner and is responsible for supervising the
engagement and signing the report or authorizing another individual to sign it.
We appreciate the opportunity to be of service to the City of Opa-locica, Florida and believe this
letter accurately summarizes the significant terms of our engagement. If you have any questions,
please let us know.
Very truly yours,
Marcum LLP
Moises D. CPA, CGMA
Partner
ACCEPTED
This letter correctly' sets forth the agreement of City. of 0pa-locka, Florida.
Officer's signature:
Title:
Date signed: 1)