Resolution No. 2020-44 Approving Audit Engagement Agreement with Keefe McCullough - June 9, 2020RESOLUTION NO. 2020-44
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF
AVENTURA, FLORIDA, AUTHORIZING THE CITY MANAGER ON
BEHALF OF THE CITY TO EXECUTE AND OTHERWISE ENTER INTO
THE ATTACHED AUDIT ENGAGEMENT AGREEMENT BETWEEN THE
CITY OF AVENTURA AND KEEFE MCCULLOUGH; AUTHORIZING THE
CITY MANAGER TO DO ALL THINGS NECESSARY TO CARRY OUT
THE AIMS OF THIS RESOLUTION; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the City of Aventura, pursuant to applicable state law, has solicited
and reviewed proposals from firms to perform the City's independent audit; and
WHEREAS, Resolution No. 2020-27 established a ranking of firms to serve as
said auditor and authorized negotiations with the top ranked firm; and
WHEREAS, the Auditor Selection Committee's Chair, Commissioner Robert
Shelley has negotiated fees and scope of services with the top -rated firm (Keefe
McCullough) and recommends approval of the Audit Engagement Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF AVENTURA, FLORIDA, THAT:
Section 1. The City Manager is hereby authorized on behalf of the City of
Aventura to execute and otherwise enter into that certain Audit Engagement Agreement
between the City of Aventura and Keefe McCullough for auditing services.
Section 2. The City Manager is hereby authorized to do all things necessary
and expedient in order to effectuate the execution of the attached Agreement described
in Section 1 above, and to carry out the aims of this Resolution.
Section 3. This Resolution shall become effective immediately upon its
adoption.
The foregoing Resolution was offered by Commissioner Narotsky, who moved its
adoption. The motion was seconded by Commissioner Landman, and upon being put to
a vote, the vote was as follows:
Commissioner Denise Landman
Yes
Commissioner Dr. Linda Marks
Yes
Commissioner Gladys Mezrahi
Yes
Commissioner Marc Narotsky
Yes
Commissioner Robert Shelley
Yes
Vice Mayor Howard Weinberg
Yes
Mayor Enid Weisman
Yes
City of Aventura Resolution No. 2020-44
PASSED AND ADOPTED this 9t" day of June, 2020.
ENID WEISMAN, MAYOR
C"ef� q
ATTEST:
ELLISA L. HORVATH, MMC
CITY CLERK
APPROVED AS TO LEGAL SUFFICIENCY:
V4 �-� 14"t—
CITY ATTORNEY
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AUDITOR AGREEMENT
THIS IS AN AGREEMENT, dated the 9 day of June, 2020, by and between:
THE CITY OF AVENTURA, a municipal corporation of the State of Florida, with
a business address of 19200 W. Country Club Drive, Aventura, Florida 33180,
hereinafter referred to as "CITY,"
and
Keefe, McCullough & Co., LLP, authorized to do business in the State of
Florida, with a business address of 6550 N. Federal Highway, 4t" Floor, Fort
Lauderdale, FL 33308, hereinafter referred to as "AUDITORS."
WITNESSETH:
In consideration of the mutual terms and conditions, promises, covenants and payments
hereinafter set forth, CITY and AUDITORS agree as follows:
ARTICLE 1
PREAMBLE
In order to establish the background, context and form of reference for this Agreement and to
generally express the objectives and intentions of the respective parties herein, the following
statements, representations and explanations shall be accepted as predicates for the
undertakings and commitments included within the provisions which follow and may be relied
upon by the parties as essential elements of the mutual considerations upon which this
Agreement is based.
1.1 On February 24, 2020, the CITY advertised its request for proposal No. 20-03-25-2
(hereinafter, "RFP") which set forth the CITY's desire to hire a firm to provide:
Independent Audit Services for the City of Aventura
RFP No. 20-03-25-2
1.2 On March 27, 2020, the responses to the RFP were opened at the offices of the City
Manager.
1.3 On May 5, 2020, the CITY Commission selected and ranked four (4) firms from the list
of proposers and authorized the Commissioner Robert Shelley, the Chair of the Auditor
Selection Committee to negotiate the terms of an agreement with the highest proposer.
1.4 On June 9, 2020, the CITY awarded the RFP to AUDITORS and authorized the proper
City officials to enter into this Agreement with AUDITORS to render the professional
services more particularly described herein below.
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1.5 Negotiations pertaining to the services to be performed by the AUDITORS were
undertaken and this Agreement incorporates the results of such negotiation.
ARTICLE 2
SERVICES AND RESPONSIBILITIES
2.1 AUDITORS hereby agree to perform the professional auditing services described in
request for proposal No. 20-03-25-2 Section III labeled "NATURE OF SERVICES
REQUIRED" attached hereto as Exhibit "A." In case of a conflict or a perceived
conflict, between the terms and conditions set forth in Exhibit "A" and the AUDITORS
Proposal for Annual Independent Audit Services, Exhibit "A" shall govern.
2.2 During the conduct of the audit, AUDITORS shall schedule regular meetings, with the
CITY's Assistant City Manager — Finance and Administration or designee at least
weekly to discuss the progress of the work.
2.3 AUDITORS shall furnish all services, labor, equipment, and materials necessary and as
may be required in the performance of this Agreement and all work performed under
this Agreement shall be done in a professional manner.
2.4 AUDITORS hereby represent to CITY, with full knowledge that CITY is relying upon
these representations when entering into this Agreement with AUDITORS, that
AUDITORS have the professional expertise, experience and manpower to perform the
services to be provided by AUDITORS pursuant to the terms of this Agreement.
ARTICLE 3
TIME FOR PERFORMANCE
AUDITORS shall perform the services identified in Article 2 and Exhibit "A" hereof and deliver
to the CITY in final form the report of the independent auditor, management letter, the single
audit report, and any other report as required for each fiscal year by no later than February 15t"
of each year for the City's audit and no later than August 19t" for the Aventura City of
Excellence School and the Don Soffer Aventura High School audits of each year during the
term of this Agreement. Minor adjustments to the timetable for completion approved by CITY
in advance, in writing, will not constitute non-performance by AUDITORS per this Agreement.
Additional services requested by City Manager, or changes in scope, will be reviewed and any
impact on the schedule will be determined and the schedule may be modified accordingly.
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ARTICLE 4
DELAY IN PERFORMANCE
4.1 Liquidated Damages for Delay
4.1.1 CITY shall be entitled to retain the sum of One Hundred and Fifty Dollars ($150.00) for
each day, or part thereof, that the work remains uncompleted beyond the timetable set
forth in Article 3 hereof when such delay is caused by the failure of the AUDITOR to
perform as agreed herein. It is recognized and agreed that damages in such events
are difficult to ascertain, though great and irreparable, and that this agreement with
respect to liquidated damages shall in no event disentitle CITY to injunctive relief and
this sum is not construed as a penalty.
4.1.2 Anything to the contrary notwithstanding minor adjustments to the timetable for
completion approved by CITY in advance, in writing, will not constitute a delay by
AUDITORS for which liquidated damages are due. Furthermore, a delay due to an Act
of God, fire, lockout, strike or labor dispute, riot or civil commotion, act of public enemy
or other cause beyond the control of AUDITORS shall extend this Agreement for a
period equal to such delay and during this period such delay shall not constitute a delay
by AUDITORS for which liquidated damages are due.
ARTICLE 5
COMPENSATION AND METHOD OF PAYMENT
5.1 CITY agrees to compensate AUDITORS for all services performed by AUDITORS
pursuant to the provisions of this Agreement in AN AMOUNT NOT TO EXCEED Fifty
Nine Thousand Two Hundred Dollars and No Cents ($59,200.00) (the "Fee"). This
amount may not be exceeded without a written amendment to this Agreement. This
Fee is broken down for each segment of the various required audits as follows:
Compensation for:
City's Annual Audit
37 200.00
These Fees include out-of-pocket expenses and the cost of drafting, typing and binding
twenty (20) copies of the Comprehensive Annual Financial Report (CAFR) and
providing a "converted" (not scanned) signed electronic copy in PDF that meets all
ADA requirements.
Aventura City of Excellence School Annual Audit $11,000.00
These Fees include out-of-pocket expenses and the cost of drafting, typing and binding
twenty (20) copies of the Audited Financial Statements of the Charter School and
providing a "converted" (not scanned) signed electronic copy in PDF that meets all
ADA requirements.
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Don Soffer Aventura High School Annual Audit $11,000.00
These Fees include out-of-pocket expenses and the cost of drafting, typing and binding
twenty (20) copies of the Audited Financial Statements of the Charter School and
providing a "converted" (not scanned) signed electronic copy in PDF that meets all
ADA requirements.
The Fee for subsequent contract years, ending 2021, 2022, 2023 and 2024 will be in
accordance with Exhibit "B".
5.2 Method of Billing and Payment.
5.2.1 AUDITORS shall be entitled to invoice monthly based on the hours of work completed
during the course of the engagement and out-of-pocket expenses incurred as accepted
by CITY. Invoices shall be submitted in sufficient detail to demonstrate compliance with
the terms of this Agreement.
5.2.2 CITY will make its best efforts to pay AUDITORS within thirty (30) days of receipt of
proper invoice the total shown to be due on such invoice.
5.2.3 Payment will be made to AUDITORS at:
Keefe, McCullough & Co., LLP
6550 N. Federal Highway, 4t" Floor
Fort Lauderdale, FL 33308
ARTICLE 6
CHANGES IN SCOPE OF WORK
CITY or AU DITORS may request changes that would increase decrease or otherwise modify
the Scope of Services to be provided under this Agreement. Such changes must be in
accordance with the provisions of the Code of Ordinances of the CITY and must be contained
in a written amendment, executed by the parties hereto, with the same formality and with
equality and dignity prior to any deviation from the terms of this Agreement, including the
initiation of any extra work. In no event will the AUDITORS be compensated for any work
which has not been described in a separate written agreement executed by the parties hereto.
Provided, however, notwithstanding the foregoing if the addition of such additional services will
not exceed the Fee set forth in 5.1 above and the AUDITORS agree to be compensated in
accordance with the hourly rate set forth in Exhibit "B" the City Manager may authorize such
additional work in writing.
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ARTICLE 7
MISCELLANEOUS
7.1 Ownership of Documents. Reports, surveys, studies and other data provided in
connection with this Agreement are and shall remain the property of CITY whether or
not the project for which they are made is completed.
7.1.1 AUDITORS further acknowledge that CITY may post its audited financial statements on
CITY's website. Such statements may be posted by CITY without the prior
authorization of AUDITORS. No additional fee or compensation will be paid to the
AUDITORS by CITY for such posting.
7.1.2 The CITY will include its audited financial statements in any offering statement without
the prior authorization of the AUDITORS. AUDITORS acknowledge that they will assist
and provide their services to CITY, at no additional expense to CITY, in the event that
CITY requests AUDITORS to review and provide comments on the unaudited material
or information associated with any audited financial statement which is included in an
offering statement related to any bond transaction of CITY.
7.2 Term and Termination.
7.2.1 This Agreement may be terminated by either party for cause, or by the CITY for
convenience, upon thirty (30) days written notice by the CITY to AUDITORS in which
event the AUDITORS shall be paid their compensation for services performed to
termination date. In the event that the AUDITORS abandon this Agreement or cause it
to be terminated, they shall indemnify the CITY against any loss pertaining to this
termination up to a maximum of the full contracted fee amount. All finished or
unfinished documents, data, studies, surveys and reports prepared by AUDITORS
shall become the property of CITY and shall be delivered by AUDITORS to CITY.
7.2.2 This Agreement shall take effect as of the date of award by the City Commission and
be in effect for a two (2) year period and shall end upon the AUDITORS completion of
the work described herein, however, such date shall not be later than February 15,
2021 for the City's Audit and no later than August 19, 2021 for the Aventura City of
Excellence School and the Don Soffer Aventura High School audits. Thereafter, this
Agreement may be renewed for three (3) additional one (1) year periods subject to
Agreement by both parties, and providing that all terms, conditions and specifications
remain the same.
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7.3 Records. AUDITORS shall keep books and records and require any and all
subcontractors to keep books and records as may be necessary in order to record
complete and correct entries as to personnel hours charged to this engagement, and
any expenses for which AUDITORS expect to be reimbursed. Such books and records
will be available at all reasonable times for examination and audit by CITY and shall be
kept for a period of three (3) years after the completion of all work to be performed
pursuant to this Agreement, unless contacted by CITY and advised such records must
be kept for a longer period. AUDITORS shall further be required to respond to the
reasonable inquiries of successor auditors and allow successor auditors to review
AUDITORS' working papers related to matters of continuing accounting, reporting or
auditing significance. Incomplete or incorrect entries in such books and records will be
grounds for disallowance by CITY of any fees or expenses based upon such entries.
7.4.1 The AUDITORS shall protect, defend, reimburse, indemnify and hold harmless the
CITY and the CITY'S officers, agents and employees free and harmless from and
against any and all claims, losses, penalties, damages, settlements, costs, charges,
attorneys or other professional fees, or other expenses or liabilities of every kind and
character arising out of or relating to any and all claims, liens, demands, obligations,
actions or proceedings directly or indirectly arising out of or resulting from the mistakes
or negligence, gross negligence, willful and wanton acts and the performance of this
Agreement by the AUDITORS, or their respective officers, employees, agents,
servants, partners or principals. The AUDITORS agree to investigate, respond, adjust
and provide a defense for any such claims, demands, and actions at AUDITORS' sole
expense and agrees to bear and remain liable for all such other costs and expenses
relating thereto, even if such claim is groundless, false or fraudulent. Notwithstanding
the foregoing, AUDITORS' indemnity shall not extend to liability for damages to
persons or property to the extent such damage was caused by any act, omission, or
default of the CITY, or by the CITY'S officers, agents and employees.
7.4.2 The parties recognize that various provisions of this Agreement, including but not
necessarily limited to this Section, provide for indemnification by the AUDITORS and
that Florida law may require a specific consideration be given therefore. The parties
therefore agree that the sum of Ten Dollars and 00/100 ($10.00), receipt of which is
hereby acknowledged, is the specific consideration for such indemnities, and the
providing of such indemnities is deemed to be part of the specifications with respect to
the services to be provided by AUDITORS. Furthermore, the parties understand and
agree that the covenants and representations relating to this indemnification provision
shall survive the term of this Agreement and continue in full force and effect as to the
party's responsibility to indemnify.
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7.5 Insurance.
7.5.1 The AUDITORS shall not commence work under this Agreement until they have
obtained all insurance required under this paragraph and such insurance has been
approved by the City Manager of the CITY nor shall the AUDITORS allow any
Subcontractor to commence work on his sub -contract until all similar such insurance
required of the subcontractor has been obtained and approved.
7.5.2 Certificates of insurance, reflecting evidence of the required insurance shall be filed
with the City's Risk Manager prior to the commencement of this Agreement. These
Certificates shall contain a provision that coverage's afforded under these policies will
not be cancelled until at least forty-five days (45) 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. The Financial Strength Rating and the Financial Size
category must be "B+" and "VI" or higher, respectively according to the latest edition
of "Best Key Rating Guide," published by A.M. Best Guide.
7.5.3 Insurance shall be in force until the obligations required to be fulfilled under the terms of
the Agreement are satisfied. In the event the insurance certificate provided indicates
that the insurance shall terminate and lapse during the period of this Agreement, then
in that event, the AUDITORS shall furnish, at least forty-five (45) days prior to the
expiration of the date of such insurance, a renewed certificate of insurance as proof
that equal and like coverage for the balance of the period of the Agreement and
extension there under is in effect. The AUDITORS shall not commence nor continue to
provide any services pursuant to this Agreement unless all required insurance remains
in full force and effect. AUDITORS shall be liable to CITY for any lapses in service
resulting from a gap in insurance coverage.
7.5.4 REQUIRED INSURANCE
7.5.4.1. PROFESSIONAL LIABILITY insurance. Limit of $1,000,000 per occurrence The
City does not require AUDITORS to name City as "additional insured"
7.5.4.2. WORKERS' COMPENSATION insurance shall be maintained during the life of
this Agreement to comply with statutory limits for all employees, and in the case
any work is sublet, the AUDITORS shall require the Subcontractors similarly to
provide Workers' Compensation Insurance for all the latter's employees unless
such employees are covered by the protection afforded by the AUDITORS. The
AUDITORS and their subcontractors shall maintain during the life of this policy
Employers Liability Insurance. The following limits must be maintained:
Workers' Compensation Statutory
Employer's Liability $100,000 — Each Accident
$500,000 — Disease -policy limit
$100,000 — Disease -each employee
Page 7 of 10
If AUDITORS claim to be exempt from this requirement, AUDITORS shall provide CITY
proof of such exemption along with a written request for CITY to exempt AUDITORS,
written on AUDITORS' letterhead.
7.5.4.3 The CITY reserves the right to require any other insurance coverage it deems
necessary depending upon the exposures.
7.6 Independent Contractor. This Agreement does not create an employee/employer
relationship between the parties. It is the intent of the parties that the AUDITORS are
independent contractors under this Agreement and not the CITY's employees for all
purposes, including but not limited to, the application of the Fair Labor Standards Act
minimum wage and overtime payments, Federal Insurance Contribution Act, the Social
Security Act, the Federal Unemployment Tax Act, the provisions of the Internal
Revenue Code, the State Workers' Compensation Act, and the State unemployment
insurance law. The AUDITORS shall retain sole and absolute discretion in the
judgment of the manner and means of carrying out AUDITORS' activities and
responsibilities hereunder. The AUDITORS agree that they are a separate and
independent enterprise from the CITY, that they have full opportunity to find other
business, that they have to make their own investment in their business, and that they
will utilize a high level of skill necessary to perform the work. This Agreement shall not
be construed as creating any joint employment relationship between the AUDITORS
and the CITY and the CITY will not be liable for any obligation incurred by AUDITORS,
including but not limited to unpaid minimum wages and/or overtime premiums.
7.7 Assignments, Amendments.
7.7.1 This Agreement, or any interest herein, shall not be assigned, transferred or otherwise
encumbered, under any circumstances, by AUDITORS without the prior written
consent of CITY. However, this Agreement shall run to the benefit of CITY and its
successors and assigns.
7.7.2 It is further agreed that no modification, amendment or alteration in the terms or
conditions contained here shall be effective unless contained in a written document
executed with the same formality and of equal dignity herewith.
7.8 No Contingent Fees. AUDITORS warrant that they have not employed or retained any
company or person, other than a bona fide employee working solely for the AUDITORS
to solicit or secure this Agreement, and that they have not paid or agreed to pay any
person, company, corporation, individual or firm, other than a bona fide employee
working solely for AUDITORS any fee, commission, percentage, gift, or other
consideration contingent upon or resulting from the award or making of this Agreement.
For the breach or violation of this provision, the CITY shall have the right to terminate
the Agreement without liability at its discretion, to deduct from the contract price, or
otherwise recover the full amount of such fee, commission, percentage, gift or
consideration.
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7.9 Notice. Whenever any party desires to give notice unto any other party, it must be
given by written notice, sent by registered United States mail, with return receipt
requested, addressed to the party for whom it is intended, at the places last specified,
and the places for giving of notice shall remain such until they shall have been changed
by written notice in compliance with the provisions of this section. For the present, the
AUDITORS and the CITY designate the following as the respective places for giving of
notice:
CITY: Ronald J. Wasson, City Manager
City of Aventura
19200 W. Country Club Drive
Aventura, FL 33180
Telephone No. (305) 466-8910
Facsimile No. (954) 466-8919
Copy To: Weiss Serota Helfman Cole & Bierman, P.L.
200 East Broward Blvd., Suite 1900
Fort Lauderdale, FL 33301
Telephone No. (954) 763-4242
Facsimile No. (954) 764-7770
AUDITORS: Keefe, McCullough & Co., LLP
6550 N. Federal Highway, 4t" Floor
Fort Lauderdale, FL 33308
7.10 Binding Authority. Each person signing this Agreement on behalf of either party
individually warrants that he or she has full legal power to execute this Agreement on
behalf of the party for whom he or she is signing, and to bind and obligate such party
with respect to all provisions contained in this Agreement.
7.11 Headings. Headings herein are for convenience of reference only and shall not be
considered on any interpretation of this Agreement.
7.12 Exhibits. Each Exhibit referred to in this Agreement forms an essential part of this
Agreement. The exhibits if not physically attached should be treated as part of this
Agreement and are incorporated herein by reference.
7.13 Severability. If any provision of this Agreement or application thereof to any person or
situation shall to any extent, be held invalid or unenforceable, the remainder of this
Agreement, and the application of such provisions to persons or situations other than
those as to which it shall have been held invalid or unenforceable shall not be affected
thereby, and shall continue in full force and effect, and be enforced to the fullest extent
permitted by law.
7.14 Governing Law. This Agreement shall be governed by the laws of the State of
Florida with venue lying in Miami -Dade County, Florida. The parties hereby voluntarily
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waive any right to trial by jury in any litigation between the parties which, in any way,
arises out of or concerns this Agreement or the course of dealing between the parties.
7.15 Extent of Agreement. This Agreement represents the entire and integrated
agreement between the CITY and the AUDITORS and supersedes all prior
negotiations, representations or agreements, either written or oral.
IN WITNESS OF THE FOREGOING, the parties have set their hands and seals the day and
year first written above.
CITY OF AVENTURA
BY:
RONALD J. WASSON, CITY MANAGER
APPROVED AS TO FORM.
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OFFICE OF THE CITY ATTORNEY
TNESSES:
ATTEST:
SECRETARY
STATE OF FLORIDA)
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COUNTY OF MIAMI-DADE)
ATTEST:
CITY CLERK
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AUDITOR
BY:
Print Name:8F-m-rotJ
Title: M prg hA i N G Ppt�ycR
Sworn to (or affirmed) and subscribed before me by means of Y\ physical presence or online
notarization, this 29 day of 1A 2026, by
(Name of person making statement)
Personally known to me
produced
x or has produced Identification , type of identification
(NOTARY SEAL HERE
Notary Public St" of Florida
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SIGNATURE OF NOTARY PUBLIC
PRINT, TYPE/STAMP NAME OF NOTARY
Page 10 of 10
Exhibit A
(Referenced From)
INDEPENDENT AUDIT SERVICES FOR THE
CITY OF AVENTURA
RFP # 20-03-25-2
III. NATURE OF SERVICES REQUIRED
A. General
The City of Aventura is soliciting the services of qualified firms of
Independent Certified Public Accountants to audit the City's financial
statements for the fiscal year ending September 30, 2020, and the financial
statements of the Aventura City of Excellence School and the Don Soffer
Aventura High School for the fiscal year ending June 30, 2021, and any
required Special Reports such as Grants or other compliance reporting, as
well as auditing those financial statements and other Special Reports for the
subsequent fiscal year. These audits are to be performed in accordance with
the provisions contained in this Request for Proposal.
B. Scope of Work to be Performed
The City desires the independent auditor to express an opinion as to
whether the financial statements of the City and the Aventura City of
Excellence School and the Don Soffer Aventura High School chartered by
the City and Miami -Dade County Public School District, present fairly, in
all material respects, and in accordance with accounting principles
generally accepted in the United States of America.
2. The City also desires the auditor to express an opinion on the fair
presentation of its government -wide and fund financial statements and
schedules in conformity with accounting principles generally accepted in
the United States of America. The auditor is not required to audit the
supporting schedules contained in the comprehensive annual financial
report. However, the auditor is to provide an "in -relation -to" opinion on
the supporting schedules based on the auditing procedures applied
during the audit of the government -wide and fund financial statements
and schedules. The auditor is not required to audit the introductory
section of the report or the statistical section of the report.
3. The auditor shall also be responsible for performing certain limited
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procedures involving required supplementary information required by the
Governmental Accounting Standards Board in accordance with auditing
standards generally accepted in the United States of America.
4. The auditor is required to audit the schedule of expenditures of federal
awards and state financial assistance in accordance with the Federal and
Florida Single Audit Act respectively.
The auditor is not required to audit the Aventura City of Excellence School or
the Don Soffer Aventura High School for the fiscal year ending June 30,
2020, as both schools will be audited by Caballero Fierman Llerena & Garcia,
LLP who will furnish their report to the City's principal Independent Auditor
during the engagement.
C. Auditing Standards to be Followed
To meet the requirements of this request for proposals, the audit shall be
performed in accordance with:
1. Auditing Standards generally accepted in the United States of America;
2. The standards for financial audits set forth in the U.S. General Accounting
Office's Government Auditing Standards (2022 Revision);
3. The provisions of the Federal Single Audit Act of 1984 (as amended in
1996 and subsequently);
4. The Florida Single Audit Act;
5. The provisions of U.S. Office of Management and Budget (OMB) Circular
A-133;
6. Audits of States, Local Governments, and Non -Profit Organizations,
Audits of State and Local Governments (Revised) — AICPA.
7. Section 11.45, Florida Statutes;
8. State of Florida Department of Banking and Finance Regulations;
9. Rules adopted by the State of Florida Auditor General for form and
content of governmental unit audits;
10.Any other applicable Federal, State and local laws or regulations;
Any updates of, or amendments to, these described auditing standards are to
be incorporated in future audits performed by the selected auditor performing
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auditing engagements for the City in future fiscal years.
D. Reports to be Issued
Following the completion of the audit of the City's financial statements for the
fiscal year ending September 30t", and subsequently, following the
completion of the audit of the Aventura City of Excellence School and the
Don Soffer Aventura High School's financial statements for the fiscal year
ending June 30t", the auditor shall issue:
An Independent Auditor's Report on the fair presentation of the financial
statements in accordance with accounting principles generally accepted
in the United States of America, pursuant to an audit conducted in
accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller
General of the United States.
2. An Independent Auditor's Report on Internal Control over Financial
Reporting and on Compliance and Other Matters based on an audit of
Financial Statements Performed in Accordance with Government Auditing
Standards.
3. If applicable, an Independent Auditor's Report on Compliance for Each
Major Federal Program and Major State Project; Report on Internal
Control over Compliance and Report on the Schedule of Expenditures of
Federal Awards and State Financial Assistance required by OMB Circular
A-133, Section 215.97 Florida Statutes, and Chapter 10.550, Rules of the
Auditor General.
4. An Independent Auditor's Report to City Management in Accordance with
Audits of States, Local Governments, and Non -Profit Organizations; and
Chapter 10.550, Rules of the Florida Auditor General.
5. In the Independent Auditor's Report on Internal Control over Financial
Reporting and on Compliance and Other Matters, the auditor shall
communicate any material weakness found during the audit. A material
weakness is a deficiency, or combination of deficiencies in internal control
such that there is a reasonable possibility that a material misstatement of
the entity's financial statements will not be prevented, or detected and
corrected on a timely basis.
The reports on compliance and internal controls shall include all instances
of noncompliance.
Irregularities and illegal acts. The auditors shall be required to make an
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immediate, written report to the Assistant City Manager — Finance and
Administration and the City Manager of all irregularities and illegal acts or
indications of illegal acts of which they become aware.
Reporting to the Assistant City Manager — Finance and Administration
and the City Manager. Auditors shall also disclose the following:
a) The auditor's responsibility under auditing standards generally
accepted in the United States of America, and assurances that
the independent auditor is currently licensed, and that the
members of the audit team have the minimum required
Continuing Professional Education credits required for
performing audits under Governmental Auditing Standards.
b) Significant accounting policies.
c) Management judgments and accounting estimates.
d) Significant audit adjustments.
e) Other information in documents containing audited financial
statements.
f) Disagreements with management.
g) Management consultation with other accountants.
h) Major issues discussed with management prior to retention.
i) Difficulties encountered in performing the audit.
E. Special Considerations
1. The City will submit its Comprehensive Annual Financial Report (CAFR)
to the Government Finance Officers Association of the United States and
Canada for review in their Certificate of Achievement for Excellence in
Financial Reporting program. It is anticipated that the auditor will be
required to provide any special assistance deemed necessary to the City
in order to meet the requirements of that program.
2. The City currently anticipates that it will not issue any official statements
in connection with the sale of debt securities. However, if the City
determines it to be in their best interest to issue new debt or refinance
existing debt the official statements may be required which will contain the
general purpose financial statements and the auditor's report thereon.
The auditor shall be required, if requested by the fiscal advisor and/or the
A-4
underwriter, to issue a "consent and citation of expertise" as the auditor
and any necessary "comfort letters."
3. The City owns two (2) charter schools that are chartered by the Miami -
Dade County Public School District. Both schools are included as Major
Special Revenue Funds of the City and operate on a fiscal year that
begins on July 1st and ends on June 30t". The Aventura City of
Excellence Charter School ("ACES") is operated by the City while the Don
Soffer Aventura High School ("DSAHS") is operated under a separate
Planning/Management Services Agreement with Charter Schools USA
("CSUSA"). The DSAHS audit will be done at the offices of:
Charter Schools USA
800 Corporate Drive, Suite 700
Fort Lauderdale, FL 33334
Phone: (954) 202-3500
4. The Schedule of Expenditures of Federal Awards and State Financial
Assistance Projects and related auditor's report, as well as the reports on
compliance and internal controls are to be issued as part of the CAFR.
5. A list of findings and other weaknesses from the City's most recent
financial statement audit are attached to this document (Not Applicable).
F. Working Paper Retention and Access
All working papers and reports must be retained, at the auditor's expense, for
a minimum of five (5) years, unless the firm is notified in writing by the City of
the need to extend the retention period. The auditor will be required to make
working papers available, upon request, to the following parties or their
designees:
City of Aventura
Cognizant agency(s) pursuant to OMB Circular A-133
U.S. General Accounting Office (GAO)
Auditor General of the State of Florida
Parties designated by the federal or state governments or by the City
as part of an audit quality review process.
Auditors of entities of which the City is a recipient or a 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, reporting or auditing significance.
A-5
Exhibit B
e
k..ULLOugn
"'J", V o S! d
Ms. Indra K. Sarju, Purchasing Agent
City of Aventura
19200 West Country Club Drive
Aventura, FL 33180
Dear Ms. Sarju:
Please accept this letter as confirmation of our discussion with Commissioner Shelley, Audit
Committee Chair, regarding our proposal to provide auditing services to the City for the five-year
period ending September 30, 2024 and the City schools ending June 30, 2025,
We understand that the City has been impacted by the current COVID-19 crisis and is experiencing
higher than normal costs. We have agreed to provide a seven percent (7%) fee reduction in years one
and two of our contract for the City audit with the goal of providing some short-term relief to the City.
These fees would be added to the annual increases in years three through five to compensate for the
adjustment. We have detailed the fees on the attached schedule for clarity.
We are excited about the opportunity to continue to serve as your independent auditing firm. Please
feel free to contact me directly if you require additional information.
KEEFE WCULLOUGH
SOUTH FLORIDA BUSINESS JOURNAL
a, X �R 9 5 "S
Kmccpac('am 1 pq � � ' � , ,
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Top p 25 Accounifing Firms Tr
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SCHEDULE OF PROPOSED FEES
ORIGINAL
ANNUAL
ADJUSTED
PROPOSED
FEE
ANNUAL
FEE
ADJUSTMENT
FEE
YEAR 1
40,000
(2,800)
37,200
YEAR 2
42,000
(2,800)
39,200
YEAR 3
44,000
1,866
45,866
YEAR 4
46,000
1,867
47,867
YEAR 5
48,000
1,867
49,867
220,000
-
220,000
AVENTURA CITY OF EXCELLENCE SCHOOL
YEAR 1
11,000
-
11,000
YEAR 2
11,000
-
11,000
YEAR 3
11,000
-
11,000
YEAR 4
11,000
-
11,000
YEAR 5
11,000
-
11,000
DON SOFFER AVENTURA HIGH SCHOOL
YEAR 1
11,000
-
11,000
YEAR 2
11,000
-
11,000
YEAR 3
11,000
-
11,000
YEAR 4
11,000
-
11,000
YEAR 5
11,000
-
11,000
would only be in periods d
ADDENDUM TO CONTRACT FOR SERVICES
(CITY OF AVENTURA — KEEFE, MCCULLOUGH & CO., LLP)
THIS ADDENDUM to the contract for the provision of services (the "Contract") is made and
entered into effective as of the 9 day of June 2020, by and between, the City of Aventura, Florida,
a Florida municipality, whose business address is 19200 W. Country Club Drive, Aventura, Florida 33180
(the "CITY") and KEEFE, MCCULLOUGH & CO., LLP (the "AUDITORS").
WITNESSETH
WHEREAS the CITY and the AUDITORS previously entered into a Contract for audit services to be
provided to the CITY by the AUDITORS as described in the contract; and
WHEREAS, CITY procurement procedures require that agreements with CITY contractors require
the Contractor to comply with the Public Records Act; and
WHEREAS, upon CITY'S request, the AUDITORS desires to assure the CITY of the AUDITORS'
compliance with the Public Records Act.
NOW THEREFORE IN CONSIDERATION OF THE MUTUAL COVENANTS HEREIN CONTAINED AND
OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED,
IT IS HEREBY AGREED BY CITY AND AUDITORS, AS FOLLOWS:
(1) Recitals. The above stated recitals are hereby adopted and confirmed.
(2) Public Records Act Compliance.
a. AUDITOR agrees to keep and maintain public records in AUDITORS' possession or control in
connection with AUDITORS' performance under this Agreement. AUDITOR additionally agrees to
comply specifically with the provisions of Section 119.0701, Florida Statutes. AUDITOR shall
ensure that public records that are exempt or confidential and exempt from public records
disclosure requirements are not disclosed, except as authorized by law, for the duration of the
Agreement, and following completion of the Agreement until the records are transferred to the
CITY.
b. Upon request from the CITY custodian of public records, AUDITOR shall provide the CITY with a
copy of the requested records or allow the records to be inspected or copied within a reasonable
time at a cost that does not exceed the cost provided by Chapter 119, Florida Statutes, or as
otherwise provided by law.
c. Upon completion of this Agreement or in the event of termination by either party, any and all
public records relating to the Agreement in the possession of the AUDITOR shall be delivered by
the AUDITOR to the CITY MANAGER, at no cost to the CITY, within thirty (30) days. All such records
stored electronically by AUDITOR shall be delivered to the CITY in a format that is compatible with
the CITY'S information technology systems. Once the public records have been delivered upon
completion or termination of this Agreement, the AUDITOR shall destroy any and all duplicate
public records that are exempt or confidential and exempt from public records disclosure
requirements.
d. Any compensation due to AUDITOR shall be withheld until all records are received as provided
herein.
e. AUDITORS' failure or refusal to comply with the provisions of this section shall result in the
immediate termination of this Agreement by the CITY.
Section 119.0701(2)(a), Florida Statutes
IF THE AUDITOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES,
TO THE AUDITORS' DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE
CUSTODIAN OF PUBLIC RECORDS.
Custodian of Public Records: ELLISA L. HORVATH, CITY CLERK
Mailing address: 19200 W. COUNTRY CLUB DRIVE, AVENTURA, FL 33180
Telephone number: 305-466-8901
Email: HORVATHE@CITYOF AVENTURA.COM
(3) Conflict. In the event that a conflict arises between the provisions of the Agreement and this
Addendum, the provisions of the Addendum shall control.
IN WITNESS WHEREOF, the parties hereto have accepted, made and executed this Addendum to Contract
upon the terms and conditions above stated on the day and year first above written.
AUDITORS:
By: — �.- L
Presi nt
W Il.bi fiM�,�n(
MRna���C, PA-RTN�2
CITY OF AVENTURA, FLORIDA:
By.
Ronald J. Wasson
City Manager
ATTEST:
City Clerk
Approved as to Form and Legal Sufficiency for
the Reliance of City Only: V4 4-7-� �-�
City Attorney
Engagement Letter - City
Keef e
MtCullough
CPA's + Trusted Advisors
Mr. Ronald J. Wasson, City Manager,
Honorable Mayor and Members of the City Commission
City of Aventura, Florida
19200 West Country Club Drive
Aventura, FIL 33180
IWOTI T1,617MOM
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comparing ine 111'rormaTion Tor consisierwj,7,1111 s respilnse IL 11111111111 11 L
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 Schedules.
3. GASB - Required Supplementary Pension and Other Post -Employment Benefits (OPEB)
Schedules.
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comparing and reconciling such information directly to the underlying accounting and other records
procedures in accordance with auditing standards generally accepted in the United States of America,
and we will provide an opinion on it in relation to the financial statements as a whole, in a report
combined with our auditor's report on the financial statements:
1. Schedule of Expenditures of Federal Awards and State Financial Assistance, if applicable.
2. Combining and Individual Non -Major Fund Financial Statements and Budgetary Comparison
Sched,les.
SOUTH FLORIDA BUSINESS JOURNAL
Cc .corn 1 6550 N Federal Hwy, 4th Floor, Fort Lauderdale, FL 33308 Phone� 954.771.0896 Fax: 954.938.9353
To25 Accounting Firms I South Florida Business Journal Top 400 Accounting Firms in the U.S. I INSIDE Public Accounting
REST PLACES TO WORK
City of Aventura, Florida - 2 - June 1, 2020
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:
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engagement.
KMCcpaxom I 1550 N Federal Hwy, /,th Floor, Fort [-3uderdale, FL. '3308 Pho,�e. `,)54.771.096 Fax: 954.930.9393
City of Aventura, Florida -4- June 1, 2020
As required by the Uniform Guidance and Chapter 10.550, Rules of the Auditor General, 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 and state project. However, our tests will
be less in scope than would be necessary to render an opinion on those controls and, accordingly, no
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Chapter 10,550, Rules of the Auditor General.
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the Uniform Guidance and Chapter 10.550, Rules of the Auditor General.
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.
The Uniform Guidance 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 auditee has complied with
applicable federal and state statutes, regulations, and the terms and conditions of federal and state
and other applicable procedures described in the OMB Compliance Supplement 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 City's major programs and projects. The purpose of these procedures will
be to express an opinion on the City's compliance with requirements applicable to each of its major
programs and projects in our report on compliance issued pursuant to the Uniform Guidance and
Chapter 10.550, Rules of the Auditor General.
Eon
D. 1100111EISMIR Mum 1. a . MiMM-11 M-I LIM 0 M on - I ^ 1 0 WITANI OM
A MEMO 9 is
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information provided by you. These nonaudit services do not constitute an audit under Government
Auditing Standards and such services will not be conducted in accordance with Government Auditing
Standards. We will perform the services in accordance with applicable professional standards. The other
services are limited to the financial statements, schedule of expenditures of federal awards and state
financial assistance, and related notes services previously defined. We, in our sole professional
judgment, reserve the right to refuse to perform any procedure or take any action that could be
construed as assuming management responsibilities.
KMCcpa,con,,, 6550 N Federal 1 1,Ny, 4th Floor, Fort Lauderdale, FL 33308 Phone: 954.771.0896 Fax: 954.938.9353
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City of Aventura, Florida -7-
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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 electronically submit the
reporting package (including financial statements, schedule of expenditures of federal awards, summary
schedule of prior audit findings, auditor's 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
re ortin icka e must be submitted within the earlier of 30 calendar days after receipt of the auditor's
We will provide copies of our reports to the City; however, management is responsible for distribution
of the reports and the financial statements. Unless restricted by law or regulation, or containing
privileged and confidential information, copies of our reports are to be made available for public
The audit documentation for this engagement is the property of Keefe McCullough and constitutes
confidential information. However, subject to applicable laws and regulations, audit documentation and
appropriate individuals will be made available upon request and in a timely manner to the Auditor
General or its designee, a federal 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. We will notify you of any such request. if requested, access to such audit
documentation will be provided under the supervision of Keefe McCullough personnel. Furthermore,
upon request, we may provide copies of selected audit documentation to the aforementioned parties.
including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years after the
report release date or for any additional period requested by the agencies listed above. If we are aware
that a federal awarding agency, pass -through entity, or auditee is contesting an audit finding, we will
contact the party(ies) contesting the audit finding for guidance prior to destroying the audit
necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional
costs. Any requested work outside the scope of the audit will be discussed in advance with the City's
Finance Director and billed at the quoted hourly rates.
KMCcpaxomm 1 655UNFedera|Hwy, 4,hRoor,Fu�Lauderdab.FL333U8 Fhon2.954J71.0396 Fax:f5Z�.f38.9J53
City of Aventura, Florida - 8 - June 1, 2020
0 0 ^ 0 - tommawimo
copy and return it to us.
m3mmE=
KEErEUcCULLOUGH
Willrnl& Benson, C.P.A.
This letter correctly sets forth the understanding of the City of Aventura, Florida.
City Manager
Ronald J. Wasson
BO
IM,
June 9, 2020
KMCcpaxom 1 6550 N Federal Hwy, 4th Floor, Fort Lauderdale, FL 33308 Phom954.771,0896 Fax:954,938,9353
City of Aventura, Florida -5- June 1, 2020
Aventura City of Excellence Charter School
The audit documentation for this engagement will be retained for a minimum of five years after th,,4
report release date or for any additional period requested by a regulator. if we are aware that a federal
awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting tht-
audit finding for guidance prior to destroying the audit documentation.
Our proposed fees are included in Exhibit B to the Auditor Agreement dated June 1, 2020. Our invoices
r -
lor these services will be rendered each month as work progresses and payable on presentation.
The above fees are based upon the anticipated cooperation from your personnel and the assumption
that unexvected circumstances will not be encountered clurin the audit. If ignificant additional time is
9 -si
necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional
costs. Any requested work outside the scope of the audit will be discussed in advance with the City's
Finance Director and billed at the quoted hourly rates.
We appreciate the opportunity to be of service to the City of Aventura, Florida and believe this letter
accurately summarizes the significant terms of our engagement. If you have any questions, please let us
know. if you agree with the terms of our engagement as described in this letter, please sign the enclosed
copy and return it to us.
Regards,
KEEFE cCLOUGH
Willia G. enson,C.P.A.
RESPONSE:
YM7Mer correc rjseT e uncierSTanaing
Charter School.
Signature:
Ronald J. Wasson
UMLI
Title: City Manager
I
June 9, 2020
KMCcpa-corin 1 6550 N Federal Hv.,y, Lth Floor, Fci-t Lauderdale, FL 33308 Phone: 954.771.0896 Fax: 954.938.9353
City of Aventura, Florida -5- June 1, 2020
Don Soffer Aventura High School
The audit documentation for this engagement will be retained for a minimum of five years after thZ
report release date or for any additional period requested by a regulator. If we are aware that a federal
awarding agency or auditee is contesting an audit finding, we will contact the party(ies) contesting thd
audit finding for guidance prior to destroying the audit documentation.
I][$] A I I P-W4&1f4 VA DORAVYA I IN WA j1-4 i to IQ 1:10 KWv III an H IsH m int-1 --4 a- 2100--F,1-011-1
necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional
costs. Any requested work outside the scope of the audit will be discussed in advance with the City's
Finance Director and billed at the quoted hourly rates.
We appreciate the opportunity to be of service to the City of Aventura, Florida and believe this letter
accurately summarizes the significant terms of our engagement. If you have any questions, please let us
know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed
copy and return it to us.
KEEFV McCOLLOUGH
fflw���
This letter correctly sets forth the understanding of City of Aventura, Florida - Don Soffer Aventura High
School.
Signature:
Ronald J. Wasson
Print Name:
City Manager
Title:
June 9, 2020
Date:
KMCc?r'la,com I 6550 N Federal ldvq, Lth Floor, Fort Lauderdale, FL 33308 Phone: 954.771.0896 Fax: 954.938.9353