2001-24513 RESO
RESOLUTION NO. 2001-24513
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, (1) ACCEPTING THE
RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE
RANKING OF THE PROPOSALS RECEIVED IN RESPONSE TO REQUEST
FOR PROPOSALS (RFP) NO. 34-00/01, FOR AUDITING SERVICES; (2)
AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP RANKED FIRM OF KPMG FOR AUDIT
OF THE CITY'S GENERAL PURPOSE FINANCIAL STATEMENTS, AND
IF UNSUCCESSFUL IN NEGOTIATING A CONTRACT WITH KPMG,
AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE SECOND RANKED FIRM OF ERNST AND
YOUNG; (3) AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE TOP RANKED FIRM OF ERNST & YOUNG
TO AUDIT THE MIAMI BEACH REDEVELOPMENT AGENCY (RDA),
THE MIAMI BEACH CONVENTION CENTER (MBCC), THE JACKIE
GLEASON THEATER OF THE PERFORMING ARTS (fOPA), THE MIAMI
BEACH VISITOR AND CONVENTION AUTHORITY (VCA), AND THE
CITY OF MIAMI BEACH PARKING SYSTEM (MBPS), AND IF
UNSUCCESSFUL IN NEGOTIATING A CONTRACT WITH ERNST &
YOUNG, AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE SECOND RANKED FIRM OF KPMG; AND
(4) FURTHER AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE AGREEMENTS WITH THE SUCCESSFUL FIRMS, IN THE
AMOUNT OF $99,500 FOR THE CITY'S GENERAL PURPOSE FINANCIAL
STATEMENTS, AND $48,750 TO AUDIT THE RDA, MBCC, TOPA, VCA,
AND MBPS.
WHEREAS, on October 18, 2000, the Mayor and City Commission passed and adopted
Resolution No. 2000-24139, authorizing the issuance of Request for Proposals (RFP) No. 34-00/01
for Auditing Services; and
WHEREAS, the primary purpose of the audit is to examine the City's General Purpose
Financial Statements of the City's Comprehensive Annual Financial Report ("CAFR") for a period
of up to five years at the option of the City; and
WHEREAS, the engagement shall include such funds and groups of accounts contained
in the City's CAFR except for the financial statements of the Miami Beach Redevelopment
Agency; the Miami Beach Convention Center and Jackie Gleason Theater of the Performing Arts,
as managed by SMG; the Miami Beach Visitor and Convention Authority; and the City of Miami
Beach Parking System; and
WHEREAS, the auditors should express an opinion on the fairness of the presentation of
the City financial statements in accordance with generally accepted auditing standards and performed
in compliance with Federal, State and City orders, statutes, ordinances, resolutions, bond covenants,
rules and regulations which may pertain to the work required in the engagement; and
WHEREAS, the auditors will provide guidance with the implementation of GASB34 and
will examine the financial statements as required in conformity with generally accepted accounting
principles; and
WHEREAS, RFP notices were sent to 279 individuals and/or firms, which resulted in 10
individuals and/or firms obtaining a copy of the RFP with four responses:
KPMG LLP
Ernst & Young LLP
Grau & Company, P.A.
Branker & Associates; and
WHEREAS, Letter to Commission (LTC) No. 148-2001, established an Evaluation
Committee consisting of the following individuals:
Mark Gidney, CPA
Larry Herrup, CPA, Budget Advisory Committee
Tony Rodriguez, Budget Advisory Committee
James Sutter, CPA, Internal Auditor, City of Miami Beach
Patricia Walker, CPA, Chief Financial Officer, City of Miami Beach
Jeryl (DeDe) Weithorn, CPA, Budget Advisory Committee; and
WHEREAS, on July 13,2001, the Committee convened and all members were in
attendance, unanimously agreed to separate and consider the evaluation of the audits as follows:
1. Audit of the City's General Purpose Financial Statements: Evaluation and consideration
on the two firms who submitted proposals in this audit engagement: KPMG, and Ernst &
Young;
2. Audit of the RDA and Parking System: Evaluation and consideration of all four firms
who submitted proposals: KPMG, Ernst & Young, Grau & Company, and Harvey,
Branker & Associates;
3. Audit of the VCA and MBCC & TOPA: Evaluation and consideration of all four firms
who submitted proposals: KPMG, Ernst & Young, Grau & Company, and Harvey,
Branker & Associates; and
WHEREAS, the Committee unanimously recommended KPMG as the top ranked firm,
and Ernst & Young as the second ranked firm, for the City's General Purpose Financial
Statements; and
WHEREAS, the Committee unanimously recommended Ernst & Young as the top
ranked firm, and KPMG as the second ranked firm, for the following audits: RDA, Parking
System, MBCC, TOPA, and VCA.
NOW, THEREFORE BE IT DULY RESOLVED BY THE MAYOR AND
CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor
and City Commission hereby accept the recommendation of the City Manager pertaining to
the ranking of the proposals received in response to Request for Proposals (RFP) No. 34-
00/01, for Auditing Services; Authorize the Administration to enter into negotiations with
the top ranked firm ofKPMG for Audit of the City's General Purpose Financial statements,
and if unsuccessful in negotiating a contract with KPMG, authorizing the Administration to
enter into negotiations with the second ranked firm of Ernst and Young; authorizing the
Administration to enter into negotiations with the top ranked firm of Ernst & Young to audit
the Miami Beach Redevelopment Agency (RDA), the Miami Beach Convention Center
(MBCC), the Jackie Gleason Theater ofthe Performing Arts (TOPA), the Miami Beach
Visitor and Convention Authority (VCA), and the City of Miami Beach Parking System
(MBPS), and if unsuccessful in negotiating a contract with Ernst & Young, authorizing the
Administration to enter into negotiations with the second ranked firm ofKPMG; and further
authorizing the Mayor and City Clerk to execute agreements with the successful firms in the
amount 0[$99,500 for the City's General Purpose Financial Statements, and $48,750 to audit
the RDA, MBCC, TOPA, VCA, AND MBPS.
PASSED AND ADOPTED this l:&t:h day of July 2001.
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AYOR
ATTEST:
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CITY CLERK
F:IPURCI$ALLIRomanIResolutions\AUDITING.doc
APPROVED AS TO
FORM & LANGUAGE
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH. FLORIDA 33139
http:\\ci.miami-beach.fl.us
TO:
FROM:
SUBJECT:
COMMISSION MEMORANDUM NO. l/s-S--O/
Mayor Neisen O. Kasdin and DATE: July 18,2001
Members ofthe City Commission
Jorge M. Gonzalez '\./
City Manager UJ/V" (j
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, (1) ACCEPTING THE
RECOMMENDATION OF THE CITY MANAGER PERTAINING TO
THE RANKING OF THE PROPOSALS RECEIVED IN RESPONSE TO
REQUEST FOR PROPOSALS (RFP) NO. 34-00/01, FOR AUDITING
SERVICES; (2) AUTHORIZING THE ADMINISTRATION TO ENTER
INTO NEGOTIATIONS WITH THE TOP RANKED FIRM OF KPMG TO
AUDIT OF THE CITY'S GENERAL PURPOSE FINANCIAL
STATEMENTS, AND IF UNSUCCESSFUL IN NEGOTIATING A
CONTRACT WITH KPMG, AUTHORIZING THE ADMINISTRATION
TO ENTER INTO NEGOTIATIONS WITH THE SECOND RANKED
FIRM OF ERNST AND YOUNG; (3) AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE
TOP RANKED FIRM OF ERNST & YOUNG TO AUDIT THE MIAMI
BEACH REDEVELOPMENT AGENCY (RDA), THE MIAMI BEACH
CONVENTION CENTER (MBCC), THE JACKIE GLEASON THEATER
OF THE PERFORMING ARTS (TOP A), THE MIAMI BEACH VISITOR
AND CONVENTION AUTHORITY (VCA), AND THE CITY OF MIAMI
BEACH PARKING SYSTEM (MBPS), AND IF UNSUCCESSFUL IN
NEGOTIATING A CONTRACT WITH ERNST & YOUNG,
AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS WITH THE SECOND RANKED FIRM OF KPMG;
AND (4) FURTHER AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE AGREEMENTS WITH THE SUCCESSFUL FIRMS IN
THE AMOUNT OF $99,500 FOR THE CITY'S GENERAL PURPOSE
FINANCIAL STATEMENTS, AND $48,750 TO AUDIT THE RDA, MBCC,
TOP A, VCA, AND MBPS.
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
Agenda Item
e7K
7-lg-{)/
Date
Commission Memorandum
RFP for Auditing Services
July 18, 2001
Page 2 of7
FUNDING
$ 99,500
15,000
13,750
15,000
5.000
$148,250
General Fund
Parking Enterprise Fund
Convention Center Enterprise Fund
Redevelopment Agency
Visitor and Convention Authority
Total
ANALYSIS
The primary purpose of the audit is to examine the City's General Purpose Financial Statements of
the City's Comprehensive Annual Financial Report ("CAFR") for a period of up to five years at the
option of the City. The original engagement will be for the fiscal year ending September 30, 200 I.
Additional years of the engagement would be subject to the approval of the Audit Committee and
confirmation by the City Commission annually.
The original engagement shall include such funds and groups of accounts contained in the City's
CAFR except for the financial statements of the Miami Beach Redevelopment Agency, the Miami
Beach Convention Center and Jackie Gleason Theater of the Performing Arts as managed by SMG,
the Miami Beach Visitor and Convention Authority and the City of Miami Beach Parking System.
These component units are audited under a separate cover and have been included as additive
alternates, subject to their Board's approval, in this RFP.
The auditors should express an opinion on the fairness of the presentation of the City financial
statements in accordance with generally accepted auditing standards and performed in compliance
with Federal, State and City orders, statutes, ordinances, resolutions, bond covenants, rules and
regulations which may pertain to the work required in the engagement. The auditors will provide
guidance with the implementation of GASB34 and will examine the financial statements as required
in conformity with generally accepted accounting principles.
An evaluation is to be made of the system of internal control to assess the extent that it can be relied
upon to insure accurate information and compliance with laws and regulations and to provide for
efficient and effective operation. The study of internal control should include a review of the system
and test of compliance.
A review is to be made of the information technology operations of the City and controls to assure
protection of files and prevention of processing errors.
The auditor shall prepare the Report ofIndependent Certified Public Accountants for inclusion on
the CAFR. The auditor shall also submit the following reports for inclusion in the report to the
Auditor General: Report of Independent Certified Public Accountants, Report of Independent
Certified Public Accountants on Compliance and Internal Controls, Management Letter, and
Memorandum of Accounting Procedures and Internal Controls (as needed).
Commission Memorandum
RFP for Auditing Services
July 18, 2001
Page 3 of7
RFP No. 34-00/01 ("the RFP")
The RFP notices were sent by DemandStar by Onvia to 279 individuals and/or firms, which resulted
in 10 individuals and/or firms obtaining a copy of the RFP with four responses:
KPMG LLP
Ernst & Young LLP
Grau & Company, P.A.
Branker & Associates
EVALUATION COMMITTEE:
Letter to Commission (LTC) No. 148-2001, established an Evaluation Committee consisting of the
following individuals:
Mark Gidney, CPA
Larry Herrup, CPA, Budget Advisory Committee
Tony Rodriguez, Budget Advisory Committee
James Sutter, CPA, Internal Auditor, City of Miami Beach
Patricia Walker, CPA, Chief Financial Officer, City of Miami Beach
Jeryl (DeDe) Weithorn, CPA, Budget Advisory Committee
COMMITTEE MEETING:
On July 9, 2001, the Committee was provided with the following documents:
. Proposals received from KPMG, Ernst & Young, Grau & Company, and Branker & Associates;
. RFPNo.34-00/0I;
. Disclosure Questionnaire form; and
. Evaluation Matrix form.
The Committee members were informed that it is very important that they adhere to the City's Cone
of Silence Ordinance and the Government in the Sunshine Law. All Committee members were
asked to disclose any association or relationship, which would constitute a conflict of interest, either
actual or perceived, with any firm and/or individuals comprising or representing each proposer.
All Committee members completed the Disclosure Questionnaire Forms and certified that their
answers were true and correct to the best of their knowledge.
Commission Memorandum
RFP for Auditing Services
July 18, 2001
Page 40f7
On July 13, 200 I, the Committee convened and all members were in attendance. The Committee
discussed the following items:
Duly Noticed Committee Meeting: The Evaluation Committee meeting was a duly noticed in
the Daily Business Review.
Committee Chair: The Committee unanimously selected Larry Herrup as its Chair.
Current Auditor: Both the Chief Financial Officer and the Internal Auditor for the City
expressed a satisfaction level with KPMG.
Evaluation of Audit Engagements: The Committee unanimously agreed to separate and
consider the evaluation of the audits as follows:
1. Audit of the City's General Purpose Financial Statements: Evaluation and consideration
on the two firms who submitted proposals in this audit engagement: KPMG, and Ernst &
Young.
2. Audit of the RDA and Parking System: Evaluation and consideration of all four ftrms
who submitted proposals: KPMG, Ernst & Young, Grau & Company, and Harvey,
Branker & Associates.
3. Audit of the VCA and MBCC & TOPA: Evaluation and consideration of all four firms
who submitted proposals: KPMG, Ernst & Young, Grau & Company, and Harvey,
Branker & Associates.
Evaluation Criteria Re Audit of the City's General Purpose Financial Statements: The
Committee unanimously agreed to assign the following weight with one (l) being the lowest, and
five (5) being the highest:
CRITERIA
WEIGHT
Firm's Experience in Auditing Services
Qualifications of Project Team
Methodology and Approach
Previous Similar Projects
References Provided by Prior Clients
Fees
5
5
4
5
4
2
Note: Fees received a low weight since the difference in fees between KPMG and Ernst & Young
was minimal: $99,500 vs. $96,050.
Commission Memorandum
RFP for Auditing Services
July 18,2001
Page 50f7
Evaluation Criteria Re All Other Audits (i.e. VCA, RDA, TOP A, MBCC, and Parking
System: The Committee unanimously agreed to assign the following weight with one (1) being
the lowest, and five (5) being the highest:
CRITERIA
WEIGHT
Firm's Experience in Auditing Services
Qualifications of Project Team
Methodology and Approach
Previous Similar Projects
References Provided by Prior Clients
Fees
5
5
4
5
4
5
Note: The Committee determined that since the difference in fees were not minimal in the in the total
of the VCA, RDA, TOPA, MBCC, and Parking System audits, that fees would receive a higher
weight.
COMMITTEE SCORING AND RANKING:
City's General Purpose Financial Statements
Members KPMG
Mark Gidney 250
Larry Herrup 202
Tony Rodriguez 240
James Sutter 232
Patricia Walker 238
DeDe Weithorn 183
TOTALS 1,345
ERNST & YOUNG
240
216
220
223
220
180
1,299
The Committee unanimously recommended KPMG as the top ranked firm, and Ernst & Young
as the second ranked firm.
Commission Memorandum
RFP for Auditing Services
July 18,2001
Page 6 of7
COMMITTEE SCORING AND RANKING:
RDA & PARKING SYSTEM
Members KPMG E&Y GRAU HARVEY
Mark Gidney 118 132 115 99
Larry Herrup 224 252 186 196
Tony Rodriguez 260 280 191 201
James Sutter 289 267 268 191
Patricia Walker 214 271 233 190
DeDe Weithorn 190 224 153 167
TOTALS 1,295 1,426 1,264 1,044
The Committee unanimously recommended Ernst & Young as the top ranked firm, and KPMG
as the second ranked firm for the Audit ofthe RDA and Parking System.
COMMITTEE SCORING AND RANKING:
MBCC, TOPA, AND VCA
Members KPMG E&Y GRAU HARVEY
Mark Gidney 123 132 127 104
Larry Herrup 196 252 186 196
Tony Rodriguez 260 280 191 201
James Sutter 289 267 278 191
Patricia Walker 214 271 233 170
DeDe Weithorn 200 189 196 200
TOTALS 1,282 1,391 1,211 1,062
The Committee unanimously recommended Ernst & Young as the top ranked firm, and KPMG as
the second ranked firm for the Audit of the MBCC, TOPA, and the VCA.
Commission Memorandum
RFP for Auditing Services
July 18, 2001
Page 70f7
Due to the need for an audit of the City's General Purpose Financial Statements for the City
Comprehensive Annual Financial Report (CAFR) for Fiscal Year ending September 30, 2001, the
Administration recommends that the Mayor and City Commission adopt the attached resolution.
JMG,PDW,GL I
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