HomeMy Public PortalAbout18-9490 Authorizing the Manager to execute and Amendment to Anthony Brunson P.A. for Account Service Sponsored by: City Manager
RESOLUTION NO. 18-9490
A RESOLUTION OF THE CITY COMMISSION OF THE
CITY OF OPA-LOCKA, FLORIDA, AUTHORIZING THE
CITY MANAGER TO EXECUTE AN AMENDMENT TO THE
AGREEMENT WITH ANTHONY BRUNSON, P.A., FOR
CERTIFIED PUBLIC ACCOUNTANT SERVICES, IN A
FORM ACCEPTABLE TO THE CITY ATTORNEY;
PROVIDING FOR INCORPORATION OF RECITALS;
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the City of Opa-locka ("City") solicited quotes from the Miami-Dade
County Management Consulting Services Pool for Certified Public Accountant Services
pursuant to Resolution 17-9369 passed by the City Commission on May 24, 2017; and
WHEREAS, the City Commission entered into an Agreement with Anthony Brunson,
P.A. to provide audits of Fiscal Years 2015 and 2016 in the amount of$85,000.00; and
WHEREAS, the actual hours to complete the 2015 audit alone exceeded the
estimate by four-hundred (400) hours; and
WHEREAS, Anthony Brunson, P.A. desires to amend its Agreement to change the
fee amount from $85,000.00 to $125,780.00 to address the additional time expended; and
WHEREAS, the City Commission finds that it is in the best interest of the City to
approve the Amendment to Anthony Brunson, P.A.'s Agreement.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
THE CITY OF OPA-LOCKA, FLORIDA:
Section 1. RECITALS ADOPTED.
The recitals to the preamble herein are incorporated by reference.
Section 2. AUTHORIZATION
The City Commission authorizes the City Manager to execute an amendment to the
Agreement with Anthony Brunson, P.A., in a form acceptable to the City Attorney, for
Certified Public Accountant Services.
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 may be authorized by the City
Manager, or the City Manager's designee, without need of public hearing, by filing a
corrected or re-codified copy of same with the City Clerk.
Resolution No. 18-9490
Section 4. 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 9th day of May, 2018.
i
M NrraL.L. Tay or
ayor
Attest to: Approved as to form and legal sufficiency:
} ti's
canna Flores The Brown Law Group, LLC
ty Clerk City Attorney
Moved by: COMMISSIONER RILEY
Seconded by: VICE MAYOR KELLEY
Commissioner Vote: 5-0
Commissioner Holmes: YES
Commissioner Riley: YES
Commissioner Pigatt: YES
Vice Mayor Kelley: YES
Mayor Taylor: YES
• li:;ML •
City of Opa-Locka
Agenda Cover Memo
Department Bryan Hamilton
Director: Department
Budget Ernesto Reyes Director Signature:
es
Administrator: y Budget j
Administrator/ACM ./
Finance Si: ature: 411
Bryan Hamilton FD Signature:
Director: Department
MMIlli
Acting City Newall Daughtrey
Manager: J. g y ACM Signature: �w ,
Commission 05.09.18 �. �,, ► ,, Ea
Item Type:
Meeting Date: s
(EnterXin box)
Fiscal Impact: Y' '
Ordinance Reading:
(Enter X in box)
�, (EnterXin box)
x Public Hearing:
(EnterXin box)
X
Funding (Enter Fund& Advertising Requirement:
Source: Dept) (EnterXin box) &WS"
Account#: Ex: %
19-519992
Contract/P.O. RFP/RFQ/Bid#:
Required:
(EnterXin box) . X
Strategic Plan ' Strategic Plan Priority Area:
Strategic Plan Obj./Strategy:
Enhance Organizational 0 (list the specific objective/strategy this item
(EnterXin box) X Bus.&Economic Dev 0
will address)
Public Safety 0
Quality of Education
Qual.of Life&City Image _1
Communication
Sponsor Name City Manager Department:
City Manager
s, u x a:u a a ° s v*
` 1N-V" r 't) 't
Authorizing the City Manager to execute an amendment to the agreement with Anthony Brunson, P.A.
3 ;
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Due to the number of hours involved in the audit process, it is in the best interest of the City to amend th I
agreement to change the fee amount. e
I Prqxwed iktkur
Staff met with the consultant as well as the City Attorney and Staff recommends approval. I
IAttachment:
i
0 6'egie
MEMORANDUM
To: Newall J. Daughtrey
Acting City Maria_e'a,
From: Bryan Hamilton '
Finance Director `r
I
Date: April 20, 2018
Re: Anthony Brunson P.A. - Audit Fee Recommendation
The Finance Department has reviewed the existing agreement for the FY 2015 and FY 2016
audits with Anthony Brunson P.A. (Brunson). Finance has also reviewed communications with
Brunson as well as conversations, invoicing and staff hour logs from Brunson. Based upon this
review, we feel that it is reasonable to recommend that we move forward with the proposal letter,
addressed to the City Manager, dated April 17, 2018.
The firm has requested an annual auditing fee of$65,000, for each of the years, FY 2015 and FY
2016. The original commission approved contract was $85,000, for FY 2015 and FY 2016,
combined. As such, the current request represents an aggregate increase of$45,000.
The benefits which should accrue to the City include:
1. The release of:
a. More than$2 Million of CST funds,presently with City National Bank
b. 1/2 Cent sales tax
c. Revenue sharing funds.
2. Having participated in the FY2015 audit, the Brunson team's familiarity with the
process should translate into efficiencies which would be lost if a change in the
auditing team were made at this time. Moreover, such a change would not only
impede the process, but also prove to be more costly, as a new team would be faced
with a steep learning curve.
3. The banking community would not view a change in accounting firms favorably.
END OF MEMORANDUM
780 FISHERMAN STREET,4Th FLOOR,OPA-L OCKA,FLORIDA 33054.(305)953-2868
AN EQUAL OPPORTUNITY EMPLOYER AND DOES NOT DISCRIMINATE ON THE BASIS OF HANDICAP
-7)
rwv ANTHONY BRUNSON P.A.
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
December 14,2016
Ms.Yvette Harrell
City Manager
City of Opa-Locks
780 Fisherman Street
Opa-lox ka,FL 33054
Dear Ms.Harrell:
We are pleased to confirm our understanding of the services we are to provide the City of Opa-Locks
(the"City")for the years ended September 30,2015 and 2016.We will audit the financial statements of
the governmental activities,the business-type activttteseach 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 30,2015 and 2016.
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 a
City's RSI in accordance with auditing standards generally accepted apply certain limited procedures These
ese
limited procedures will consist of inquiries of management� Pied to the United States of America.These
nq 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
Fort Lauderdale Office
/)13 Miami Office
333 Las Olas Way I CU 4 801 Brickell Avenue I Suite 900
Fort Lauderdale,FL 33301 CLIENT FOCUSED: SOLUTION DRIVEN
T: (954)361-6571 Miami,FL 33131
E:info @abcpasolutions.com T: (305)789-6673
Ms.Yvette Harrell,City Manager
December 14,2016
Page 2
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 recondling 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 ft 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 US.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 M 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
Guldance)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
CLIENT FOCUSED ( SOLUTION DRIVEN
Ms.Yvette Harrell,Qty Manager
December 14,2016
Page 3
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 Guidannce,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
attributable to the government or to acts governmental regulations that are
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.
CLIENT FOCUSED SOLUTION DRIVEN
Ms.Yvette Harrell,City Manager
December 14,2016
Page 4
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.
CLIENT FOCUSED d1B SOLUTION DRIVEN
Ms.Yvette Harrell,City Manager
December 14,2016
Page s
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 toe express an opinion on the
with � P City's compliance
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 responsibMty for program compliance and for the accuracy and
completeness of that information.
Management is also responsible for making ail 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.
C L I ENT FOCUSED '' SOLUTION DRIVEN
Ms.Yvette Harrell,City Manager
December 14,2016
Page 6
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 indude 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
managements 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 indude 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
indude acknowledging to us In the written representation letter that (1) you are responsible for
presentation of the schedule of expenditures of federal awards M 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).
CLIENT FOCUSED SOLUTION DRIVEN
Ms.Yvette Harrel,City Manager
December 14,2016
Page 7
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, induding 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.
C L I E N T F O C U S E D j:43 S O L U T I O N D R I V E N
Ms.Yvette Harrell,City Manager
December 14,2016
Page 8
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 emalls 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 wiN 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.lf 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(les)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.
ii3C L I E N T F O C U S E D ( S O L U T I O N D R I V E N
Ms.Yvette Harrell,City Manager
December 14,2016
Page 9
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 managementAny 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 thiss 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 30,2015 and 2016 will be$85,000
which includes an audit in accordance with the Uniform Guidance and/or the Florida Single Audit Act,if
the City of Opa-Locka Is required to undergoduring any year of this contract.Our hourly rates vary
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 disscuss these circumstances with you and arrive at a new fee estimate before we inncur
the additional costs.
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.
CLIENT FOCUSED SOLUTION DRIVEN
Ms.Yvette Harrel,City Manager
December 14,2016
Page 10
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 30,2015 and 2016.Additionalhi,She MY has
agreed to grant a three year extension for fiscal years ending September 30,2017,2018, and 2019
pursuant to the terms and objectives of this agreement based upon an annual audit fee of$65,000 We
appreciete the opportunity to be of service to the City and believe this letter accurately summarizes the
significant terms of our emagement.If you have any questions,please let us know.If you agree with the
terms of our engagement as described in this lotto;please sign the enclosed copy and return it to us.
. e ,, P.A.
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RESPONSE:This letter correctly sets forth the understanding of the City of Opp-Locke
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Approved for Legal Sufficiency -
Vincent T.Brown,Esq. Date
The Brown Law Group,LLC
City of Ope-lodo,FL
Office of the City Attorney
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A,c,stud to by the City Clerk
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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.
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 gates
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 Exaenscs
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,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
it is understood between the parties that this Agreement could be terminated for good cause by
either party upon thirty days of written notice.
c\T„,„sorizo\ ANTHONY BRUNSON P.A.
CERTIFIED PUBLIC ACCOUNTANTS & BUSINESS ADVISORS
April 17,2018
Mr. Newall J. Daughtrey, City Manager
City of Opa-locks
780 Fisherman Street
Opa-locka, FL 33054
REF:Audit Fee Adjustment Due to Engagement's Unexpected Circumstances.
Dear Mr. Daughtrey:
This letter serves to highlight the facts and circumstances which warrant an audit fee adjustment for the
September 30 2016 audit engagement. Unexpected circumstances occurred in performing the FYE 2015
audit engagement which will be highlighted in this letter.
First, let's discuss the basis for the original engagement letter and related fees. An initial fee of$85,000
was agreed upon based upon a strategy to concurrently perform the FYE 2015 engagement and
significant segments of the FYE 2016 engagement in an effort to save audit costs. This strategy was
developed with the initial management and accounting team of the City of Opa Locka (City). The team
comprised City Manager Harrell and accounting team members Parchment and Stephenson. This team
was supported by staff members of Account temps and Miami-Dade County. We originally anticipated
incurring around 800-850 hours for both years and an audit completion date no later June 30,2017.
UNEXPECTED CIRCUMSTANCES
The actual audit completion date for the FYE 2015 audit was February 28, 2018. The actual audit costs
were $125,780 based upon 973 hours incurred. As a result the engagement easily exceeded the original
budget by 400 hours for FYE 2015.
1. Additional hours incurred result from working with three different management groups
representing the City. Although, the original team made their best efforts, they simply did not
have the experience or skill set to meet the challenge of the City's poor accounting records and
systems.This point is best evidenced by the volume of audit and/or accounting adjustments.
A contractual team was brought in under the leadership of Tri-Merge accounting services and
thereafter the City hired internal staff under the leadership of Bryan Hamilton. Audit progress
began with the new groups; yet, inefficiencies occurred as a result of their learning curves and
change in approaches to address the City's accounting deficiencies in its system.
Fort Lauderdale Office Miami Office
333 Las Olas Way' CU 4 801 Brickell Avenue Suite 900
Fort Lauderdale,FL 33301 CLIENT FOCUSED: SOLUTION DRIVEN
Miami,FL 33131
T: (954)361-6571 E: info @abcpasolutions.com T: (305)789-6673
Mr. Newall J.Daughtrey
April 17,2018
Page 2
2. Due to complications and deficiencies in the accounting environment, higher staff level
members from my Firm executed the audit than originally anticipated. As a result, an average
higher hourly rate incurred than originally budgeted.
3. Simply,the conditions of the City's books and records represent the core issue of additional time
spent to complete the FYE 2015 audit. The audit concluded with 70 audit adjustments covering
seventeen pages to correct historical accounting issues. Moreover, the audit evaluation of the
City's internal control system and environment resulted in material weaknesses and significant
deficiencies which required additional audit procedures and hours thereto.
The fee adjustment makes an effort to maintain annual audit costs at $65,000 each year even though
my Firm is exposed to another audit cycle of additional write offs.
If you required additional information,do not hesitate to contact me.
Very Truly Yours,
ANTHONY BRUNSON P.A.
Anth y runson
AB/kp
Cc: Bryan Hamilton
l AC L I E N T F O C U S E D ( S O L U T I O N D R I V E N