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PSA with BCA Watson Rice LLP 2-$31.5-2 9 cm-5- PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND BCA WATSON RICE LLP FOR RESORT TAX AUDITS AND INTERNAL AUDIT SERVICES RFQ NO. 2015-043-WG T 's Professional Services Agreement ("Agreement") is entered into this 0 day of , 2011("Effective Date"), between the CITY OF MIAMI BEACH, FLORIDA, a municip corporation organized and existing under the laws of the State of Florida, having its principal offices at 1700 Convention Center Drive, Miami Beach, Florida, 33139 ("City"), and BCA WATSON RICE LLP, a Florida limited liability partnership, whose address is 520 N.W. 165th Street Road, Suite 205, Miami, Florida 33169 (Consultant"). SECTION 1 DEFINITIONS Agreement: This Agreement between the City and Consultant, including any exhibits and amendments thereto. City Manager The chief administrative officer of the City. City Manager's Designee: The City Manager's designee shall be James Sutter, Internal Auditor. Consultant: For the purposes of this Agreement, Consultant shall be deemed to be an independent contractor, and not an agent or employee of the City. Services: All services, work and actions by the Consultant performed or undertaken pursuant to the Agreement. Fee: Amount paid to the Consultant as compensation for Services. Proposal Documents: Proposal Documents shall mean the City of Miami Beach Request for Qualifications (RFQ) No. 2015-043-WG for resort taxes and other internal audit services, together with all amendments thereto, issued by the City in contemplation of this Agreement (the RFQ), and the Consultant's proposal in response thereto ("Proposal"), all of which are hereby incorporated and made a part hereof; provided, however, that in the event of an express conflict between the Proposal Documents and this Agreement, the following order of precedent shall prevail: this Agreement; the RFQ; and the Proposal. Risk Manager: The Risk Manager of the City, with offices at 1700 Convention Center Drive, Third Floor, Miami Beach, Florida 33139: telephone number (305) 673-7000, Ext. 6435: and fax number(305) 673-7023. 1 SECTION 2 SCOPE OF SERVICES (SERVICES) RESORT TAX AUDITS Consultant, on a non-exclusive basis, shall provide resort tax audit services on businesses registered with the City for collecting resort taxes as further detailed in Exhibit "A" (the "Services"). INTERNAL AUDITS Consultant, on a non-exclusive basis, shall provide the City internal audit services based upon the type of audit requested. Types of audits which may be requested will comprise of Financial Audits, Attestation Engagements (includes examination, review or agreed upon procedures), Forensic Audits and Performance Audits, as further detailed in Exhibit"A". The resort tax audit services and internal audit services shall be collectively referred to as the "Services". SECTION 3 TERM The term of this Agreement (Term) shall before an initial period of two (2) years, commencing upon the Effective Date. The City, through its City Manager and at its sole discretion, will have the option to extend the Agreement for three (3)additional one-year periods. Notwithstanding the Term provided herein, Consultant shall adhere to any specific timelines, schedules, dates, and/or performance milestones for completion and delivery of the Services, as set forth on each individual project requirement, as requested. SECTION 4 FEE 4.1 FEES In consideration of the Fee to be paid to Consultant by the City, Consultant shall provide the Services as set forth in Section 2 and described in Exhibit "A" in accordance with the rates described in Exhibit"B" (the "Fees"). 4.2 TRAVEL No travel expenses will be allowable for the routine provision of resort tax audits or internal audits. In the event that the City assigns an internal audit project to a Consultant that requires travel, all travel in connection with this Agreement must be pre-approved in writing by the City Manager's designee, prior to incurring said travel expenses. All travel expenses will be reimbursed in accordance with the requirements of Section 112.061, Florida Statutes. 2 SECTION 5 TERMINATION 5.1 TERMINATION FOR CAUSE If the Consultant shall fail to fulfill in a timely manner, or otherwise violates, any of the covenants, agreements, or stipulations material to this Agreement, the City, through its City Manager, shall thereupon have the right to terminate this Agreement for cause. Prior to exercising its option to terminate for cause, the City shall notify the Consultant of its violation of the particular term(s) of this Agreement; and shall grant Consultant ten (10) days to cure such default. If such default remains uncured after ten (10) days, the City may terminate this Agreement without further notice to Consultant, or make appropriate reductions in the payment. Upon termination, the City shall be fully discharged from any and all liabilities, duties, and terms arising out of, or by virtue of, this Agreement. Notwithstanding the above, the Consultant shall not be relieved of liability to the City for damages sustained by the City by any breach of the Agreement by the Consultant. The City, at its sole option and discretion, shall be entitled to bring any and all legal/equitable actions that it deems to be in its best interest in order to enforce the City's right and remedies against Consultant. The City shall be entitled to recover all costs of such actions, including reasonable attorneys'fees. 5.2 TERMINATION FOR CONVENIENCE OF THE CITY THE CITY MAY ALSO, THROUGH ITS CITY MANAGER, AND FOR ITS CONVENIENCE AND WITHOUT CAUSE, TERMINATE THE AGREEMENT AT ANY TIME DURING THE TERM BY GIVING WRITTEN NOTICE TO CONSULTANT OF SUCH TERMINATION; WHICH SHALL BECOME EFFECTIVE WITHIN THIRTY (30) DAYS FOLLOWING RECEIPT BY THE CONSULTANT OF SUCH NOTICE. IF THE AGREEMENT IS TERMINATED FOR CONVENIENCE BY THE CITY, CONSULTANT SHALL BE PAID FOR ANY SERVICES SATISFACTORILY PERFORMED UP TO THE DATE OF TERMINATION; FOLLOWING WHICH THE CITY SHALL BE DISCHARGED FROM ANY AND ALL LIABILITIES, DUTIES, AND TERMS ARISING OUT OF, OR BY VIRTUE OF, THIS AGREEMENT. 5.3 TERMINATION FOR INSOLVENCY The City also reserves the right to terminate the Agreement in the event the Consultant is placed either in voluntary or involuntary bankruptcy or makes an assignment for the benefit of creditors. In such event, the right and obligations for the parties shall be the same as provided for in Section 5.2. 3 SECTION 6 INDEMNIFICATION AND INSURANCE REQUIREMENTS 6.1 INDEMNIFICATION Consultant agrees to indemnify and hold harmless the City of Miami Beach and its officers, employees, agents, and contractors, from and against any and all actions (whether at law or in equity), claims, liabilities, losses, and expenses, including, but not limited to, attorneys' fees and costs, for personal, economic or bodily injury, wrongful death, loss of or damage to property, which may arise or be alleged to have arisen from the negligent acts, errors, omissions or other wrongful conduct of the Consultant, its officers, employees, agents, contractors, or any other person or entity acting under Consultant's control or supervision, in connection with, related to, or as a result of the Consultant's performance of the Services pursuant to this Agreement. To that extent, the Consultant shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the City in the defense of such claims and losses, including appeals. The parties agree that one percent (1%) of the total compensation to Consultant for performance of the Services under this Agreement is the specific consideration from the City to the Consultant for the Consultant's indemnity agreement. The provisions of this Section 6.1 and of this indemnification shall survive termination or expiration of this Agreement. 6.2 INSURANCE The Consultant shall maintain and carry in full force during the Term, the following insurance: A. Consultant General Liability, in an amount not less than $1,000,000, combined singled limit per occurrence for bodily injury and property damage. B. Consultant Professional Liability, in an amount not less than $1,000,000, with the deductible per claim, if any not to exceed 10% of the limit of liability. C. Worker's Compensation and Employer's Liability Insurance pursuant to Florida Statute 440. The insurance must be furnished by insurance companies authorized to do business in the State of Florida. All insurance policies must be issued by companies rated no less than "B+" as to management, and no less than "Class VI" as to strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City's Risk Management Division. Consultant shall endeavor to provide not less than thirty (30) days prior written notice of termination, cancellation or reduction in coverage on the policy, unless comparable coverage is promptly secured. The insurance certificates for general liability shall include the City as an additional insured and shall contain a waiver of subrogation endorsement in favor of the City. Original certificates of insurance must be submitted to the City's Risk Manager for approval (prior to any work and/or Services commencing) and will be kept on file in the Office of the Risk Manager. The City shall have the right to obtain from the Consultant specimen copies of the 4 insurance policies in the event that submitted certificates of insurance are inadequate to ascertain compliance with required coverage. The Consultant is also solely responsible for obtaining and submitting all insurance certificates for any sub-consultants. CERTIFICATE HOLDER MUST READ: CITY OF MIAMI BEACH 1700 CONVENTION CENTER DRIVE 3rd FLOOR MIAMI BEACH, FL 33139 Compliance with the foregoing requirements shall not relieve the Consultant of the liabilities and obligations under this Section or under any other portion of this Agreement. SECTION 7 LITIGATION JURISDICTIONNENUE/JURY TRIAL WAIVER This Agreement shall be construed in accordance with the laws of the State of Florida. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. By entering into this Agreement, Consultant and the City expressly waive any rights either party may have to a trial by jury of any civil litigation related to or arising out of this Agreement. SECTION 8 LIMITATION OF CITY'S LIABILITY The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action, for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $10,000. Consultant hereby expresses its willingness to enter into this Agreement with Consultant's recovery from the City for any damage action for breach of contract to be limited to $10,000. Accordingly, and notwithstanding any other term or condition of this Agreement, Consultant hereby agrees that the City shall not be liable to the Consultant for damages in an amount in excess of$10,000 for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this section or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability, as set forth in Section 768.28, Florida Statutes. SECTION 9 [INTENTIONALLY DELETED] 5 SECTION 10 GENERAL PROVISIONS 10.1 [INTENTIONALLY DELETED] 10.2 [INTENTIONALLY DELETED] 10.3 ASSIGNMENT, TRANSFER OR SUBCONSULTING 10.3.1 Consultant shall not subcontract, assign, or transfer all or any portion of any work and/or service under this Agreement without the prior written consent of the City Manager, which consent, if given at all, shall be in the Manager's sole judgment and discretion. Neither this Agreement, nor any term or provision hereof, or right hereunder, shall be assignable unless as approved pursuant to this Section, and any attempt to make such assignment(unless approved) shall be void. 10.3.2 Subcontractors. The Consultant shall be liable for the Consultant's services, responsibilities and liabilities under this Agreement and the services, responsibilities and liabilities of sub-contractors, and any other person or entity acting under the direction or control of the Consultant. When the term "Consultant" is used in this Agreement, it shall be deemed to include any sub-contractors and any other person or entity acting under the direction or control of Consultant. All sun-contractors must be approved in writing by the City prior to their engagement by Consultant. 10.4 PUBLIC ENTITY CRIMES Prior to commencement of the Services, the Consultant shall file a State of Florida Form PUR 7068, Sworn Statement under Section 287.133(3)(a) Florida Statute on Public Entity Crimes with the City's Procurement Division. 10.5 EQUAL EMPLOYMENT OPPORTUNITY In connection with the performance of the Services, the Consultant shall not discriminate against any employee or applicant for employment because of race, color, national origin, religion, sex, intersexuality, gender identity, sexual orientation, disability, marital and familial status, or age. 10.6 CONFLICT OF INTEREST The Consultant herein agrees to adhere to and be governed by all applicable Miami-Dade County Conflict of Interest Ordinances and Ethics provisions, as set forth in the Miami-Dade County Code, and as may be amended from time to time; and by the City of Miami Beach Charter and Code (as some may be amended from time to time); both of which are incorporated by reference herein as if fully set forth herein. The Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirectly, which could conflict in any manner or degree with the performance of the Services. The Consultant further covenants that in the performance of this Agreement, no person having any such interest shall knowingly be employed by the Consultant. No member 6 of or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefits arising there from. All parties (including Consultant's officers, employees or contractors) shall be independent of the City, as defined by generally accepted auditing standards and Government Auditing Standards. SECTION 11 NOTICES All notices and communications in writing required or permitted hereunder, shall be delivered personally to the representatives of the Consultant and the City listed below or may be mailed by U.S. Certified Mail, return receipt requested, postage prepaid, or by a nationally recognized overnight delivery service. Until changed by notice in writing, all such notices and communications shall be addressed as follows: TO CONSULTANT: BCA Watson Rice LLP 520 N.W. 165th Street Road, Suite 205 Miami, Florida 33169 Attn: Ronald Thompkins, CPA TO CITY: City of Miami Beach Office of Budget and Performance Improvement 1700 Convention Center Drive, 3rd Floor Miami Beach, Florida 33139 Attention: James Sutter, Internal Auditor and City of Miami Beach Procurement Department 1755 Meridian Avenue, 3rd Floor Miami Beach, Florida 33139 Attention: Alex Denis, Director Notice may also be provided to any other address designated by the party to receive notice if such alternate address is provided via U.S. certified mail, return receipt requested, hand delivered, or by overnight delivery. In the event an alternate notice address is properly provided, notice shall be sent to such alternate address in addition to any other address which notice would otherwise be sent, unless other delivery instruction as specifically provided for by the party entitled to notice. Notice shall be deemed given on the day on which personally served, or the day of receipt by either U.S. certified mail or overnight delivery. 7 SECTION 12 MISCELLANEOUS PROVISIONS 12.1 CHANGES AND ADDITIONS This Agreement cannot be modified or amended without the express written consent of the parties. No modification, amendment, or alteration of the terms or conditions contained herein shall be effective unless contained in a written document executed with the same formality and of equal dignity herewith. 12.2 SEVERABILITY If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall not be affected and every other term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 12.3 ENTIRETY OF AGREEMENT The City and Consultant agree that this is the entire Agreement between the parties. This Agreement supersedes all prior negotiations, correspondence, conversations, agreements or understandings applicable to the matters contained herein, and there are no commitments, agreements or understandings concerning the subject matter of this Agreement that are not contained in this document. Title and paragraph headings are for convenient reference and are not intended to confer any rights or obligations upon the parties to this Agreement. 12.4 CONSULTANT'S COMPLIANCE WITH FLORIDA PUBLIC RECORDS LAW Pursuant to Section 119.0701 of the Florida Statutes, if the Consultant meets the definition of "Contractor" as defined in Section 119.0701(1)(a), the Consultant shall: a) Keep and maintain public records that ordinarily and necessarily would be required by the public agency in order to perform the service; b) Provide the public with access to public records on the same terms and conditions that the public agency would provide the records and at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law; c) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law; and d) Meet all requirements for retaining public records and transfer to the City, at no City cost, all public records created, received, maintained and/or directly related to the performance of this Agreement that are in possession of the Consultant upon termination of this Agreement. Upon termination of this Agreement, the Consultant shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the City in a format that is compatible with the information technology systems of the City. 8 For purposes of this Article, the term "public records" shall mean all documents, papers, letters, maps, books, tapes, photographs, films, sound recordings, data processing software, or other material, regardless of the physical form, characteristics, or means of transmission, made or received pursuant to law or ordinance or in connection with the transaction of official business of the City. Consultant's failure to comply with the public records disclosure requirement set forth in Section 119.0701 of the Florida Statutes shall be a breach of this Agreement. In the event the Consultant does not comply with the public records disclosure requirement set forth in Section 119.0701 of the Florida Statutes, the City may, at the City's sole discretion, avail itself of the remedies set forth under this Agreement and available at law. 12.5 OWNERSHIP OF DOCUMENTS All documents prepared by the Consultant pursuant to this Agreement are related exclusively to the Services described herein, and are intended or represented for ownership by the City. Any reuse, distribution, or dissemination of same by Consultant, other than to the City, shall first be approved in writing by the City Manager. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK 9 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their appropriate officials, as of the date first entered above. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: 1 /r r/ A 1to afael E. Gra do, City C�j B 'h111 4 Philip Levi F ' ayor .4'N.....-* V "*.. ,5, i ".4 ,, ,,0.--it. * , * : INCORP ORATED= Oj.. FOR CONSULTANT: '�i,�- • - A WATSON RICE LLP f 111'61--1......2-E. d ATTEST: 1 w By: 41) :- -_ _ -- -- it4e----- --)11---"-- &kSV/6VA T 4a'.<an1, T4R TNr7-k1 Ronald Thompkins, General Partner Print Name/Title Print Name/Title APPROVED AS TO FORM & LANGUAGE & FOR EC TION 1L1 — S City Attorney 'j ) Dote F:\PURC\$ALL\Solicitations\2015\2015-043-WG RFQ Auditing of Resort Taxes and Other Internal Audits\Agreement\BCA Watson Rice LLC Final 11-9-2015.doc 10 EXHIBIT "A SCOPE OF SERVICES FOR RESORT TAX AUDITS AND OTHER INTERNAL AUDITS (ON A NON-EXCLUSIVE BASIS) r 1. Resort Tax Audit Services. The Consultant, on a non-exclusive basis, shall provide o vide resort tax audit services on businesses registered with the City for collecting resort taxes. The work consists of examining the taxpayer's accounting records, such as general ledgers, cash receipts, journals, sales journals and other records as may be maintained by the taxpayer; comparison of reported taxable sales with other reports such as Florida sales tax reports, and the preparation of schedules and analysis of work determine compliance with City Code relating to the collection and payment. All taxpayers' records which are subject to, determined to be, or administered by the Resort Tax codes are examined. Detailed testing is performed on a sample basis. Consultant is to follow the City's Internal Audit programs for auditing resort tax businesses. There are separate programs for the annual filing and monthly filing accounts. Revenues reported in monthly filing accounts may vary by containing revenues from rooms, food and or alcohol. City forms and audit programs are attached as Exhibit C, and will be provided in electronic format. Also included in the work to be performed, is the initial contact with the business and the performance of an audit which results in the issuance of a resolution letter stating the results of the audit. Each audit is completed by the submission of work papers and a resolution letter to the Internal Auditor for final review and approval. The Internal Audit Department will assign these audits. The audit period for each audit assignment is three (3) years. Assigned audits need to be returned to the City's Auditor no later than the end of the quarter in which they we assigned. In consideration of the Fee to paid the Consultant by the City, Consultant shall provide the Services as set forth in Section 2 and described herein, for audits of entities required to collect and remit resort taxes based upon the fixed fees per component, as set forth in the fee schedule attached to the Agreement as Exhibit "B". 2. Audit Services within Scope of Services. The Consultant, on a non-exclusive basis, shall develop audit programs for internal audits based upon the scope of work requested by the City. The scope of work for internal audits will be contingent upon the type of audit requested. The types of audits which may be requested by the City and required to be performed by Consultant will comprise of Financial Audits, Attestation Engagements (includes examinations, review or agreed upon procedures), Performance Audits, and Forensic Audits. The City will assign these audits as needed depending upon funding. Audit work shall be performed by Consultant in accordance with the Government Auditing Standards. 11 Prior to authorizing work on an internal audit, Consultant shall be required to submit to the City Manager a fixed price proposal (the "Proposal") based on the number of hours estimated to complete the work and a price per hour that is less than or equal to the approved hourly rates set forth in the Fee schedule, attached to the Agreement as Exhibit "B". The total Fee for the audit work set forth in the Proposal may not exceed the total Fee contained in the Proposal, even if the Consultant expends additional time in connection with the proposed audit work requested by the City. Thereafter, if the City Manager, in his sole discretion, determines to proceed with the Proposal, the City Manager shall send Consultant a written notice to proceed. Each audit shall not be complete until such time as Consultant has submitted a final report, containing audit findings, which final report has been accepted by the City Manager, as evidenced by a written confirmation of acceptance from the City Manager. 3. Additional Services/ Change to Scope of Services. During the Term of this Agreement, services not specifically identified in this Scope of Services may be added upon successful negotiation between the City Manager and Consultant, including relevant fees ("Additional Services"). Additional Services shall require the prior written approval of the City Manager, which approval shall be memorialized in writing, in the form of an amendment to the Agreement, executed by the parties. Any change to the approved scope of Services shall require the prior written approval of the City Manager, which approval shall be memorialized in writing, in the form of an amendment to the Agreement, executed by the parties. 12 EXHIBIT " B" FEES Resort tax audits will be requested by the City on an as needed basis. The Consultant will perform the specified audit component work in accord with the fixed fees specified below. RESORT TAX AUDIT FIXED FEES Annual Average Reported Fixed Fee for 3 year Audit Component Revenues Audit Period Rooms Under$500,000 $1,400 Over$500,000 to$2,000,000 $1,800 Over$2,000,000 $2,400 Food and Beverages Under$500,000 $1,400 Over$500,000 to$2,000,000 $1,800 Over$2,000,000 $2,400 Annual Apartments Under$100,000 $700 Over$100,000 to$500,000 $900 Over$500,000 $1,200 Internal audits will be requested by the City on an as needed basis. The Consultant shall propose the estimated number of hours necessary to complete the audit work based on negotiated "Not to Exceed" hourly rates specified below. INTERNAL AUDIT RATES BY FIRM Position Hourly Rate Partner/Principal $150 Director $150 Manager $110 Senior $100 Staff/Consultant $75 Administrative Support $40 13 EXHIBIT "C" SAMPLE AUDIT PROGRAMS FOR RESORT TAX AUDITS 14 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS PRELIMINARY WORK NOTIFICATION LETTER: PRE-AUDIT INTERVIEW: AUDIT INTERVIEW QUESTIONNAIRE FOOD & ALCOHOL OPERATIONS Business Name: Date: What are your business hours and days of operation? What is the seating/occupancy capacity? How many employees are there? Do you provide complimentary employee meals? Do you provide discounted employee meals? If yes, % of discount: How many cash registers/ POS Terminals are there? What system do you use? What internal daily records do you keep? Guest Checks Register Tapes POS Report(daily and monthly) Do you have promotional/complimentary("house") charges: Yes ( ) No ( ) If yes, approximately what % of total sales is this? How does your system work? 1 2. 3. a CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2) weeks prior to audit commencement date). DATE j INTIALS j 1 j Tour premises with owner/contact noting layout. j ,) 2 Visually inspect the premises and: I j a. document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with the Resort Tax Section 4 Review what records are maintained to support Resort I Tax Returns with owner/contact. 5 Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS DATE DATE REQUESTED ! RECEIVED 1 SOURCE DOCUMENTS a. Restaurants & Bars ! ! i. Daily Sales Tickets ii. Cash Register Tapes iii. Daily POS Reports iv. Daily/Weekly Summaries v. Purchase Records/Invoices iiii. Other(Specify) ' 2 _ i ACCOUNTING RECORDS a. Restaurants & Bars i. Sales Journal ii. Purchases Journal iii. General Ledger 3 GENERAL ITEMS I 1 a. Federal Income Tax Returns b. State Sales Tax Return c. Exemption Documentation d. Financial Statements e. Bank Statements CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS GENERAL PROCEDURES I j DATE INITIALS 1 1 Examine Federal Income Tax Returns /Income Statements. a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2 Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 3 Examine Income Statements a. Compare sales with totals reported on the Resort Tax Returns. b. Compute the cost of sales ratio and determine its reasonableness within industry standards. c. Prepare and see related schedule(s). ; I J CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS REVENUE PROCEDURES SALES: DATE INITIALS 1 I Examine a sample of monthly sales from the Revenue Source Document. a. Trace sales to daily/weekly/monthly reports. b. Trace sales to State Sales Tax Returns. c. Prepare and see related schedules 2 ' Select a sample of guest checks/sales tickets and trace to the sales journal/revenue reports to verify propriety of the accounting records. (If possible obtain copy of guest checks for audit work papers). 3 If the business uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort tax returns. b. Prepare and see related schedules 4 i Document work performed, including an explanation of any altern t e/ additional audit procedures performed, explanations of unreasonable variances and conclusions made as to reasonableness of reported sales. PURCHASES: DATE I INITIALS 1 Calculate/review food and beverage costs for a ! i ! selected period and compare to industry/market averages. a. Prepare and see related schedules. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS POST AUDIT PROCEDURES j DATE INITIALS 1 Discuss audit findings (if any)with owner/contact. 2 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 3 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 4 Final review of audit performed by Asst. Internal Auditor/ Internal Auditor. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM ANNUAL ACCOUNTS— APARTMENTS PRELIMINARY WORK NOTIFICATION LETTER: PRE-AUDIT INTERVIEW: AUDIT INTERVIEW QUESTIONNAIRE Business Name: Date: Total Available Rooms: How many floors? What kind of rentals do your exemptions represent? PRE-AUDIT INTERVIEW DATE INTIALS 1 Tour premises noting layout 2 Visually inspect the premises for the following: a. Document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file. 14 Review what records are maintained to support Resort Tax Returns with owner/contact. 5 Review Audit Questionnaire with owner/contact. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM ANNUAL ACCOUNTS—APARTMENTS REQUEST FOR RECORDS DATE j DATE REQUESTED j RECEIVED 1 SOURCE DOCUMENTS a. Hotels, Apartment Houses, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Rent Rolls iv. Signed Lease v. Other(Specify) 2 ACCOUNTING RECORDS a. Hotels, Apartment Houses, Etc. i. Sales Journals ii. Transcript/Revenue Report iii General Ledger , 3 GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d. Exemption Documentation e. Financial Statements f. Bank Statements GENERAL PROCEDURES DATE INITIALS 1 Examine the Exemptions taken and determine their j validity. a. Prepare and see related schedule(s). 2 Examine Rental Income Records to determine taxable rentals if any. a. Trace to Resort Tax Return. b. Prepare and see related schedule(s). CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM ANNUAL ACCOUNTS —APARTMENTS POST AUDIT PROCEDURES DATE INITIALS 1 Discuss audit findings (if any) with owner/contact. 2 Review late charge fees or other memos owed by I j taxpayer. 3 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 4 j Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 5 j Final review of audit performed by Asst. Internal Auditor/Internal Auditor. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS — ROOMS ONLY AUDIT INTERVIEW QUESTIONNAIRE ROOMS OPERATIONS Business Name: Date: Check-In Time: Check-Out Time: How many floors? Total available rooms: What is the name of the front desk software?: What kind of rentals do your exemptions represent? How does your system work? 1 2. 3. 4. 5. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS — ROOMS ONLY PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2) weeks prior to audit commencement date). 1 DATE I INTIALS 1 ( Tour premises with owner/contact noting layout 2 Visually inspect the premises and document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with Resort Tax Section. 4 Review what records are maintained to support Resort Tax Returns with owner/contact. 5 j Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS j I ! DATE ' DATE . REQUESTED RECEIVED 1 SOURCE DOCUMENTS a. Hotels, Rooms, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Night Audit-report iiii. Other(Specify) 2 ACCOUNTING RECORDS a. Hotels, Rooms, Etc. i. Sales Journals ii. Transcript/Revenue Report iii. General Ledger 3 GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d. Exemption Documentation e. Financial Statements f. Bank Statements • CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS— HOTELS— ROOMS ONLY GENERAL PROCEDURES DATE I INITIALS 1 I Examine Federal Income Tax Returns/Income Statements a. Compare sales with totals reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2 Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s) 3 ' Examine County Tax returns a. Compare sales with total reported on Resort Tax Returns, Reconcile, if necessary. b. Prepare and see related schedules(s) 4 Examine Sales Tax Worksheets a. Compare sales with totals reported on the Resort Tax Returns. b. Prepare and see related schedule(s). 5 I Compare sales total from above return with the General Ledger totals. I a. Prepare and see related schedule(s) REVENUE PROCEDURES SALES: I DATE INITIALS 1 ; Examine Revenue Source Document(Rooms, etc) a. Trace sales to daily/weekly/monthly reports. b. Prepare and see related schedules. 2 I Examine a sample of daily revenue reports. a. Trace to the-month end reports. b. Compare to the Monthly Income statement./Resort Tax Returns. c. Prepare and see related schedules. 3 Examine General Ledger(sales, purchases, and tax payable) a. Trace to Financial Statements/Resort Tax Returns. b. Prepare and see related schedules. 4 If the hotel uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort tax returns. j ; b. Prepare and see related schedules. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS — ROOMS ONLY 5 ; Review selected exemptions documents for proper j signature and propriety of exemption taken. 6 ( Document work performed, including an explanation of any alternate/additional audit procedures performed, explanations of unreasonable variances and conclusions made as to reasonableness of reported sales. POST AUDIT PROCEDURES DATE INITIALS 1 1 Discuss audit findings (if any)with owner/contact. 2 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 3 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor! Internal Auditor for final review. 4 Final review of audit performed by Asst. Internal Auditor/ Internal Auditor. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE AUDIT INTERVIEW QUESTIONNAIRE FOOD &ALCOHOL OPERATIONS Business Name: Date: What are the food and beverage outlets operated by the hotel? What are the food and beverage outlets NOT operated by the hotel? Note: these operators must be registered with Resort Tax; you must follow up. What are your business hours and days of operation? What is the seating/occupancy capacity? Do you provide complimentary employee meals? Do you provide discounted employee meals? If yes, % of discount How many cash registers/ POS Terminal are there? What system do you use? Are they interfaced with the hotel? What internal daily record do you keep? Guest Checks Register Tapes POS Report(daily/monthly) Do you have promotional/complimentary("house") charges: Yes ( )No( ) If yes, approximately what % of total sales is this? How does your system work? 1 9 3. 4. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM - MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE AUDIT INTERVIEW QUESTIONNAIRE ROOMS OPERATIONS Business Name: Date: Check-In Time: Check-Out Time: How many floors? Total available rooms: What is the name of the front desk software?: What kind of rentals do your exemptions represent? How does your system work? 1 2. 3. 4. 5. CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2)weeks prior to audit commencement date). DATE INTIALS 1 Tour premises with owner/contact noting layout 2 i Visually inspect the premises and document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with Resort Tax Section. j l 4 I Review what records are maintained to support Resort Tax Returns with owner/contact. 5 Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS I i DATE ! DATE REQUESTED ; RECEIVED 1 I SOURCE DOCUMENTS a. Hotels, Rooms, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Night Audit report iiii. Other(Specify) I f 2 b. Restaurants & Bars i. Daily Sales Tickets ii. Cash Register Tapes I Daily/Weekly Summaries iv. Purchase Records/Invoices v. Other(Specify) CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE DATE ! DATE REQUESTED I RECEIVED 2 ACCOUNTING RECORDS a. Hotels, Rooms, Etc. i. Sales Journals ii. Transcript/Revenue Report iii. General Ledger b. Restaurants & Bars i. Sales Journal ii. Purchases Journal iii. General Ledger 3 I GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d. Exemption Documentation e. Financial Statements f. Bank Statements GENERAL PROCEDURES I j DATE I INITIALS 1 Examine Federal Income Tax Returns/Income Statements a. Compare sales with totals reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2 Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. • b. Prepare and see related schedule(s) 3 Examine County Tax returns a. Compare sales with total reported on Resort Tax Returns, Reconcile, if necessary. b. Prepare and see related schedules(s) 4 Examine Sales Tax Worksheets a. Compare sales with totals reported on the Resort Tax Returns. b. Prepare and see related schedule(s). 5 Compare sales total from above return with the General Ledger totals. a. Prepare and see related schedule(s) CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE REVENUE PROCEDURES SALES: DATE INITIALS 1 Examine Revenue Source Document (Rooms, Food, Alcohol) a. Trace sales to daily/weekly/monthly reports. b. Prepare and see related schedules. 2 Examine a sample of daily revenue reports. a. Trace to the month end reports. b. Compare to the Monthly Income statement./Resort Tax Returns. c. Prepare and see related schedules. 3 Examine General Ledger(sales, purchases, and tax payable) a. Trace to Financial Statements/Resort Tax Returns. b. Prepare and see related schedules. 4 If the hotel uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort j J tax returns. II� b. Prepare and see related schedules. 5 I Review selected exemptions documents for proper signature and propriety of exemption taken. 6 I Document work performed, including an explanation of any alternate/additional audit procedures performed, explanations of unreasonable variances and j conclusions made as to reasonableness of reported sales. PURCHASES: DATE INITIALS 1 Calculate/review food and beverage costs for a I f selected period and compare to industry/market averages. a. Prepare and see related schedules(s) CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE POST AUDIT PROCEDURES DATE INITIALS 1 Discuss audit findings (if any) with owner/contact. 2 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 3 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 4 I Final review of audit performed by Asst. Internal Auditor/ Internal Auditor. RESOLUTION NO . 2015-29005 15 RESOLUTION NO. 2015-29005 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 2015-043-WG FOR AUDIT SERVICES FOR RESORT TAXES AND INTERNAL AUDITS; AUTHORIZE THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH SKJT&G, BCA WATSON RICE, KILGOUR & ASSOCIATES, RGL FORENSICS, FOR THE RESORT TAX AUDITS PORTION OF THE RFQ; CROWE HORWATH, PROTIVITI, BCA WATSON RICE, FOR THE INTERNAL AUDITS PORTION OF THE RFQ; AND FURTHER AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS WITH THESE FIRMS UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. WHEREAS, Request for Qualifications (RFQ) No. 2015-043-WG was issued on December 19, 2014 with an opening date of February 26, 2014; and WHEREAS, a voluntary pre-proposal meeting was held on December 29, 2014; and WHEREAS, the City received seven (7) proposals; and WHEREAS, on April 14, 2015, the City Manager via Letter to Commission (LTC) No. 144-2015, appointed an Evaluation Committee (the "Committee"), consisting of the following individuals: • Laura Franco-Rubines, Assistant Internal Auditor, Office of Budget and Performance Improvement, City of Miami Beach • Juan Rodriguez, CPA, Finance Department, City of Miami Beach • Maria Cerna, Division Director, Capital Improvement Projects, City of Miami Beach • Sanford Horwitz, CPA, City of Miami Beach Audit Committee • Ronald Starkman, CPA, City of Miami Beach Audit Committee The following alternates were also appointed: • James Sutter, CPA, Internal Auditor Office of Budget and Performance Improvement, City of Miami Beach • Marie Paul, CPA, Finance Department, City of Miami Beach WHEREAS, the Committee convened on April 24, 2015 to consider proposals received; and WHEREAS, the Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law; general information on the scope of services, references, and a copy of the proposal; and WHEREAS, the Committee was instructed to score and rank the proposals pursuant to the evaluation criteria established in the RFQ; and r WHEREAS, after reviewing all the submissions and the Evaluation Committee's rankings, the City Manager exercised his due diligence and is recommending that the Administration be authorized to enter into negotiations with SKJT&G, BCA Watson Rice, Kilgour & Associates, RGL Forensics, for the Resort Tax Audits portion of the RFQ; Crowe Horwath, Protiviti, BCA Watson Rice, for the Internal Audits portion of the RFQ. 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 proposals, pursuant to Request for Qualifications No. 2015-043-WG (the RFQ), for Audit Services for Resort Taxes and internal Audits; authorize the Administration to enter into negotiations with SKJT&G, BCA Watson Rice, Kilgour & Associates, RGL Forensics, for the Resort Tax Audits portion of the RFQ; Crowe Horwath, Protiviti, BCA Watson Rice, for the Internal Audits Portion of the RFQ; and further authorize the Mayor and City Clerk to execute Agreements with these firms upon conclusion of successful negotiations by the Administration. PASSED AND ADOPTED this (p day of sy,2015. ATTEST: 0.1 afael E. C• ana.o, ity°Clerk Philip ev. ayor ''��.��\q\1111 r,•i, f.. �� 11 B 0 • i �•�• . * •• ' 1NCORP ORATED: 9, APPROVED AS TO �= FORM.&LANGUAGE r -4 'y &FOR EXECUTION•1,111/`l.�H 2(^ 11 111\ 4-3(rft5 City Attorney Date W icla IOMELM4r2o s a wC aua• 3Egi s itit n,Internal Audit esa COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,ACCEPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 2015-043-WG FOR AUDIT SERVICES FOR RESORT TAXES AND INTERNAL AUDITS; AUTHORIZE THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH SKJT&G, BCA WATSON RICE, KILGOUR & ASSOCIATES, RGL FORENSICS, FOR THE RESORT TAX AUDITS PORTION OF THE RFQ; CROWE HORWATH, PROTIVITI, BCA WATSON RICE, FOR THE INTERNAL AUDITS PORTION OF THE RFQ; AND FURTHER AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS WITH THESE FIRMS UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. Key Intended Outcome Supported: Ensure Expenditure Trends Are Sustainable Over the Long Term Supporting Data (Surveys, Environmental Scan, etc: N/A Item Summary/Recommendation: On December 17, 2014, the City Commission approved the issuance of the subject Request for Qualification (RFQ). On December 19, 2014 the RFQ was issued with an opening date of February 26, 2015. A pre-proposal conference to provide information to the proposers submitting a response was held on December 29,2014. The City received four(4)proposals from SKJT&G, RGL Forensics, Kilgour&Associates and BCA Watson Rice for the Resort Tax Audits portion of the RFQ, and three (3) proposals from Crowe Horwath, Protiviti and BCA Watson Rice for the Internal Audits portion of the RFQ. On April 14, 2015,the City Manager appointed, via letter to Commission(LTC)No. 144-2015, an Evaluation Committee (the Committee), which convened on April 24, 2015, to consider the ( ) P proposals. The Committee was instructed to score and rank the proposal pursuant to the evaluation criteria established in the RFQ. The results of the evaluation committee process were presented to the City Manager for his recommendation to the City Commission. After reviewing the submission and the Evaluation Committee's rankings of proposals received,the City Manager recommends that the Mayor and the City Commission, pursuant to Request for Proposals (RFQ) No. 2015-043-WG, for Audit Services for Resort Taxes and Internal Audits, authorize the Administration to enter into negotiations with all ranked proposers(who have been deemed by the Committee to be qualified), SKJT&G, RGL Forensics, Kilgour&Associates and BCA Watson Rice for the Resort Tax Audits portion of the RFQ, and Crowe Horwath, Protiviti and BCA Watson Rice for the Internal Audits portion of the RFQ, and further authorize the City Manager to execute agreements upon conclusion of successful negotiations by the Administration. RECOMMENDATION ADOPT THE RESOLUTION. Advisory Board Recommendation: Financial Information: Source of Amount Account Funds: 1 $106,400 160-0330-000312 Resort Taxes OBP 2 $150,000 011-0330-000312 Internal Audits Financial Impact Summary: The annual cost associated with the procurement of auditing services is subject to the funds availability approved through the City's budgeting process. City Clerk's Office Legislative Tracking: Alex Denis, Extension 6641 Sign-Offs: •-rtment Director t City Manager , City nager J W • ! II,,;1 if AMPU9AT JL MIAMI AGENDA _ M C b DATE 5-6-/ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSIO'. MEMORANDUM TO: Mayor Philip Levine and Members of i e City Corn -sion FROM: Jimmy L. Morales, City Manager I _■1111 DATE: May 6, 2015 SUBJECT: A RESOLUTION OF THE MAYO''- AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AC EPTING THE RECOMMENDATION OF THE CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS, PURSUANT TO REQUEST FOR QUALIFICATIONS (RFQ) NO. 2015-043-WG FOR AUDIT SERVICES FOR RESORT TAXES AND INTERNAL AUDITS; AUTHORIZE THE ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH SKJT&G, BCA WATSON RICE, KILGOUR & ASSOCIATES, RGL FORENSICS, FOR THE RESORT TAX AUDITS PORTION OF THE RFQ; CROWE HORWATH, PROTIVITI, BCA WATSON RICE, FOR THE INTERNAL AUDITS PORTION OF THE RFQ; AND FURTHER AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE AGREEMENTS WITH THESE FIRMS UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION. FUNDING The annual cost associated with the procurement of auditing services is subject to the funds availability approved through the City's budgeting process. BACKGROUND The Administration issued RFQ 2015-043-WG to seek the proposals from qualified firms to perform resort tax audits and internal audits, in an effort to create a pre-qualified pool to perform review of the City's resort tax revenues and conduct internal audits as may be necessary. These audits shall identify billing errors and other discrepancies for cost recovery. The City of Miami Beach charges a resort tax of revenue generated by the sale of rooms and on revenues from food and beverages earned within the City. Businesses are required to register with the City, to collect and remit taxes. The Internal Audit Division conducts routine periodic audits of the businesses within the City required to pay resort taxes. In addition, the City Administration may determine a need to audit a particular area whereby the Internal Audit Division does not have the resources to audit at a particular time. In the past, the Administration has sought outside assistance from qualified firms to accomplish these assignments. RFQ PROCESS On December 17, 2014, the City Commission approved the issuance of the subject Request for Qualification (RFQ). On December 19, 2014 the RFQ was issued with an opening date of February 26, 2015. A pre-proposal conference to provide information to the proposers submitting a response was held on December 29, 2014. The City received four (4) proposals from SKJT&G, RGL Forensics, Kilgour& Associates and BCA Watson Rice for the Resort Tax Audits portion of the RFQ, and three (3) proposals from Crowe Horwath, Protiviti and BCA Watson Rice for the Internal Audits portion of the RFQ. Commission Memorandum—RFQ 2015-043-WG Audit Services for Resort Taxes and Internal Audits May 6, 2015 Page 2 On April 14, 2015, the City Manager appointed, via letter to Commission (LTC) No. 144-2015, an Evaluation Committee (the Committee), consisting of the following individuals: • Laura Franco-Rubines, Assistant Internal Auditor, Office of Budget and Performance Improvement, City of Miami Beach • Juan Rodriguez, CPA, Finance Department, City of Miami Beach • Maria Cerna, Division Director, Capital Improvement Projects, City of Miami Beach • Sanford Horwitz, CPA, City of Miami Beach Audit Committee • Ronald Starkman, CPA, City of Miami Beach Audit Committee The following Alternates were also appointed: • James Sutter, CPA, Internal Auditor Office of Budget and Performance Improvement, City of Miami Beach • Marie Paul, CPA, Finance Department, City of Miami Beach The Committee convened on April 24, 2015, to consider the proposals received. Ronald Starkman was unable to attend; therefore Marie Paul was selected to serve as an alternate. The Committee was provided an overview of the project, information relative to the City's Cone of Silence Ordinance and the Government Sunshine Law. The Committee was also provided general information on the scope of services, references, and a copy of each proposal. The Committee was instructed to score and rank the proposal pursuant to the evaluation criteria established in the RFQ. Evaluation Criteria Total Points Qualifications of the proposing firm 100 Similar project experience References Team member qualifications Financial capacity Litigation History or Other Factors or Information Requested under this RFQ The Committee pointed out the importance of rapid response times to City inquiries, good communication between the proposer, business owner and City staff and adherence to specified completion dates, in order to allow for a successful partnership. The RFQ also stipulated that additional points would be applied, if applicable pursuant to the City's Veteran's Preference Ordinance. However, none of the proposers were eligible for the veteran's reference. RFQ#12015-043-WG FOR AUDIT SERVICES OF Laura RESORT TAXES Franco- Juan Maria Sandy Rubines Ranking Rodriguez Ranking Cerna Ranking Horwitz Ranking Marie Paul Ranking SKJT&G 80 1 90 1 90 1 75 1 90 1 RGL Forensics 50 2 60 4 70 4 10 4 60 3 Kilgour&Associates LLC 40 3 75 2 78 3 50 2 55 4 BCA Watson Rice 40 3 65 3 81 2 40 3 70 2 A Commission Memorandum—RFQ 2015-043-WG Audit Services for Resort Taxes and Internal Audits May 6, 2015 Page 3 RR:1102015443-M FOR OTHER INTERNAL Laura AUDITS Franco- Juan Maria Sandy Rubines Ranking Rodriguez Ranking Cema Ranking Horwitz Ranking Marie Paul Ranking BCA Watson Rice 80 3 93 2 89 3 60 3 80 3 Crowe Horwath 95 1 95 1 90 2 90 1 85 2 Protiviti 85 2 90 3 92 1 80 2 90 1 MANAGER'S DUE DILIGENCE & RECOMMENDATION The City Manager has reviewed the proposals received, pursuant to RFQ 2015-043-WG, for Audit Services for Resort Taxes and Internal Audits, and the results of the Evaluation Committee process, and recommends that the Mayor and City Commission of the City of Miami Beach, Florida, authorize the Administration to enter into negotiations with SKJT&G, RGL Forensics, Kilgour& Associates and BCA Watson Rice for the Resort Tax Audits portion of the RFQ, and Crowe Horwath, Protiviti and BCA Watson Rice for the Internal Audits portion of the RFQ; and further authorize the Mayor and City Clerk to execute agreements with these firms upon completion of successful negotiations by the Administration. CONCLUSION The Administration recommends that the Mayor and City Commission of the City of Miami Beach, Florida, approve the resolution accepting the recommendation of the City Manager, pursuant to Request for Qualification (RFQ) No. 2015-043-WG, for Audit Services for Resort Taxes and Internal Audits. JLM/MT/J /�^� T:\AGENDA120151May 61Procurement\RFQ 2015-043-WG Audit Services for Resort Taxes and Internal Audits-Memo.doc RFQ 201 5-043-WG AND ADDENDA 16 MAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 5 REQUEST FOR QUALIFICATIONS NO.2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS February 13,2015 This Addendum to the above-referenced RFQ is issued in response to questions from prospective proposers, or other clarifications and revisions issued by the City.The RFQ is amended in the following particulars only. I. Revision: Section 0300, Proposal Submittal Instructions and Format, Tab 2, is revised to include the following language: 2.2 Qualification of Proposer Team.Provide an organizational chart of all personnel and consultants to be used if awarded, the role that each team member will play in providing the services detailed herein and each team member's qualifications. A resume of each individual, including education, experience, certification such as Certified Public Accountants(CPA), Certified Internal Auditors(CIA)or Certified Fraud Examiners(CFE)and any other pertinent information, shall be included for each proposal team member to be assigned to this contract. II. Revision: Delete Paragraph C2.1, Internal Audits—Minimum Requirements and Project Specifications, in its entirety. Proposers are not required to be American Institute of Certified Public Accountants (AICPA) or Florida Institute of Certified Public Accountants(FICPA). III. Responses to Questions Received • Q1) Prospective bidder, (as a company) is not a member of either the American Institute of Certified Public Accountants (AICPA) or Florida Institute of Certified Public Accountants (FICPA), however several of our practice professionals across the firm including our local offices and audit professionals here in South Florida, are Certified Public Accountants (CPA) and members of one or both organizations. We are members of The Institute of Internal Audit (The IIA), and as such, we fully subscribe to The IIA's International Standards for the Processional Practice of Internal Auditing. Al) In an effort to ensure a greater response to the RFQ, the City has removed the minimum requirement that proposers be members of the AICPA (American Institute of Certified Public Accountants) and FICPA (Florida Institute of Certified Public Accountants). Instead,the RFQ will now require respondents to provide those certifications held by their team members,which is a more accurate measure of the qualifications of the team members which will be providing services to the City. Team member certifications will be evaluated under the qualifications portions of the evaluation criteria. Q2) Prospective bidder is unable to provide attestation services as we are not a CPA firm. However it appears that the scope of the services being requested are Internal Audit in nature and the entirety of the engagements outlined would not require attestation work. A2)Project Specifications for Internal Audits lists those types of audit which may be conducted. The majority of internal audits fall under the Performance Audits,therefore this should not exclude any firm who cannot perform attestation work to make a proposal for performance audit work. Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of the individual named below,with a copy to the City Clerk's Office at RafaelGranado(a�miamibeachfl.gov Contact: Telephone: Email: William Garviso 305-673-7000 ext.6650 WilliamGarviso @miamibeachfl.gov Bi•,ers are reminded to acknowledge receipt of this addendum as part of your RFQ submission. • lex D- is rement Director 1 ADDENDUM 5 ITB 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS M City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 4 REQUEST FOR QUALIFICATIONS NO. 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS February 9, 2015 This Addendum to the above-referenced RFQ is issued in response to questions from prospective proposers, or other clarifications and revisions issued by the City. The RFQ is amended in the following particulars only. I. Revision Deadline for receipt of proposals is hereby changed to February 26, 2015 at 3:00PM. Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of the individual named below, with a copy to the City Clerk's Office at RafaelGranado(cr�miamibeachfl.gov Contact: Telephone: I Email: William Garviso 305-673-7000 ext. 6650 j WilliamGarviso @miamibeachfl.gov Bidders are reminded to acknowledge receipt of this addendum as part of your RFQ submission. Si cerely, 1 � ex D-' 'rocurement Director • { 1 ! ADDENDUM 4 ITB 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS .. MIAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach,Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 3 REQUEST FOR QUALIFICATIONS NO. 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS ,I January 28, 2015 This Addendum to the above-referenced RFQ is issued in response to questions from prospective proposers, or other clarifications and revisions issued by the City. The RFQ is amended in the following particulars only. I. Revisions Deadline for receipt of proposals is hereby changed to February 12, 2015 at 3:00PM Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of the individual named below, with a copy to the City Clerk's Office at RafaelGranadomiamibeachfl.gov Contact: Telephone: Email: William Garviso 305-673-7000 ext. 6650 WilliamGarviso @miamibeachfl.gov :i•ders are reminded to acknowledge receipt of this addendum as part of your RFQ submission. j)'x- t j A - t r•cur- -nt Director 1 ADDENDUM 3 ITB 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS MAMIBEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 2 REQUEST FOR QUALIFICATIONS NO. 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS January 15, 2015 This Addendum to the above-referenced RFQ is issued in response to questions from prospective proposers, or other clarifications and revisions issued by the City. The RFQ is amended in the following particulars only. Revisions 1. Deadline for receipt of proposals is hereby changed to January 29, 2015 at 3:00PM Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of the individual named below, with a copy to the City Clerk's Office at RafaelGranado a.miamibeachfl.gov Contact: Telephone: Email: William Garviso 305-673-7000 ext. 6650 WilliamGarviso @miamibeachfl.gov Bidders are reminded to acknowledge receipt of this addendum as part of your RFQ submission. S' % -j`,, , ra I:�� 7.-:. PZIA � e ent Director 1 ADDENDUM 1 ITB 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS MAMIBEAC•H City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov PROCUREMENT DEPARTMENT Tel: 305-673-7490 Fax: 786-394-4002 ADDENDUM NO. 1 REQUEST FOR QUALIFICATIONS NO. 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS December 26, 2014 This Addendum to the above-referenced RFQ is issued in response to questions from prospective proposers, or other clarifications and revisions issued by the City. The RFQ is amended in the following • particulars only. - • • 1. PRE-BID CONFERENCE. The Dial-in Meeting number for the pre-bid conference scheduled for December 29, 2014 at 10:00AM has been revised as follows: Dial-in Instructions: • Dial the Telephone Number: 888-270-9936 • Enter the Meeting 4142489 and then press the pound (#) key As indicated in page 2 of the RFQ, "The Pre-Bid Conference is not mandatory. However, it is strongly encouraged that all prospective bidders attend." Any questions regarding this Addendum should be submitted in writing to the Procurement Management Department to the attention of the individual named below, with a copy to the City Clerk's Office at RafaelGranadomiamibeachfl.qov Contact: Telephone: Email: William Garviso 305-673-7000 ext. 6650 WilliamGarviso @miamibeachfl.gov idle a reminded to acknowledge receipt of this addendum as part of your RFQ submission. ems • tio(-Pro cu rem e n t Director 1 I ADDENDUM 1 ITB 2015-043-WG AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS REQUEST FOR QUALIFICATIONS ( RFQ AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS 2015-043-WG RFQ ISSUANCE DATE: DECEMBER 19, 2014. PROPOSALS DUE: JANUARY 15, 2015 @ 3:00PM • ISSUED BY: WILLIAM GARVISO, CPPB MIAMIBEACH WILLIAM GARVISO, PROCUREMENT COORDINATOR PROCUREMENT DEPARTMENT 1700 Convention Center Drive, 3rd Floor, Miami Beach, FL 33139 305.673.7000 X6650 I www.miamibeachfl.gov P ''a IA AA1 BEACH TABLE OF CONTENTS • SOLICITATION SECTIONS: PAGE 0100 NOT UTILIZED . N/A 0200 INSTRUCTIONS TO PROPOSERS & GENERAL CONDITIONS 3 0300 SUBMITTAL INSTRUCTIONS & FORMAT 10 0400 PROPOSAL EVALUATION 11 APPENDICES: APPENDIX A PROPOSAL CERTIFICATON, QUESTIONNAIRE AND AFFIDAVITS APPENDIX B "NO PROPOSAL" FORM APPENDIX C MINIMUM REQUIREMENTS & SPECIFICATIONS APPENDIX D SPECIAL CONDITIONS APPENDIX E SAMPLE CONTRACT APPENDIX F INSURANCE REQUIREMENTS APPENDIX G SAMPLE AUDIT PROGRAMS FOR RESORT TAX AUDITS RFQ 2015-043-VVG 2 ej MIAMI BEACH SECTION 0200 INSTRUCTIONS TO RESPONDENTS&GENERAL CONDITIONS 1. GENERAL. This Request for Qualifications (RFQ) is issued by the City of Miami Beach, Florida(the"City"), as the means for prospective Proposers to submit their qualifications, proposed scopes of work and cost proposals (the "proposal") to the City for the City's consideration as an option in achieving the required scope of services and requirements as noted herein. All documents released in connection with this solicitation, including all appendixes ,I and addenda, whether included herein or released under separate cover, comprise the solicitation, and are complementary to one another and together establish the complete terms, conditions and obligations of the Proposers and, subsequently, the successful Proposer(s) (the"contractor[s}') if this RFQ results in an award. The City utilizes PublicPurchase (www.publicpurchase.com) for automatic notification of competitive solicitation opportunities and document fulfillment, including the issuance of any addendum to this RFQ. Any prospective Proposer who has received this RFQ by any means other than through PublicPurchase must register immediately with PublicPurchase to assure it receives any addendum issued to this RFQ. Failure to receive an addendum may result in disqualification of proposal submitted. 2. PURPOSE. Through this Request for Qualifications, the City of Miami Beach is seeking proposals from interested qualified parties in order to establish a contract(s) for the provision of audits of resort taxes and other internal audits, on an as needed basis. Interested parties shall submit proposals for resort tax audits and/or for other internal audits. Interested parties may submit proposals for both categories; however, each category (resort tax or other internal audits) requires a separate and distinct proposal. The process for this RFQ shall be as follows: • Proposals are solicited pursuant to the RFQ. • Responses are evaluated in accordance with the criteria established herein. • The City Manager shall make an award recommendation to the City Commission which may include more than one (1)consultant recommended for each category. • The City Commission will make final approval of the selected consultant(s). • Any resulting Agreement will be based on the attached sample agreement. The City will negotiate final scope and pricing with selected consultant(s). • The City may declare an impasse at any time with any selected consultant with whom terms, scope of services or pricing cannot be mutually agreed upon. For the purpose of this RFQ, the term "Proposer is intended to define a firm or individual submitting a proposal (statements of qualifications)to the City pursuant to this RFQ. 3. SOLICITATION TIMETABLE.The tentative schedule for this solicitation is as follows: RFQ Issued December 19, 2014 Pre-Proposal Meeting December 29, 2014 @ 10:00AIV1 Deadline for Receipt of Questions January 5, 2015 Responses Due January 15, 2015 @ 3:OOPM Evaluation Committee Review TBD Proposer Presentations TBD Tentative Commission Approval Authorizing Negotiations TBD Contract Negotiations Following Commission Approval MONS2151412111. anal RFQ 2015-043-WG 3 {vj'iIAt i ACH 4. PROCUREMENT CONTACT. Any questions or clarifications concerning this solicitation shall be submitted to the Procurement Contact noted below: Procurement Contact: Telephone: Email: William Garviso 305.673.7000 x6650 williamgarviso@miamibeachfl.gov Additionally, the City Clerk is to be copied on all communications via email at: RafaelGranado @miamibeachfl.gov ; or facsimile: 786-394-4188. The Bid title/number shall be referenced on all correspondence. All questions or requests for clarification must be received no later than ten (10) calendar days prior to the date proposals are due as scheduled in Section 0200-3. All responses to questions/clarifications will be sent to all prospective Proposers in the form of an addendum. 5. PRE-PROPOSAL MEETING OR SITE VISIT(S). Only if deemed necessary by the City, a pre-proposal meeting or site visit(s) may be scheduled. A Pre-Proposal conference will be held as scheduled in Solicitation Timeline above at the following address: City of Miami Beach City Hall -4th Floor City Manager's Large Conference Room 1700 Convention Center Drive Miami Beach, Florida 33139 Attendance (in person or via telephone) is encouraged and recommended as a source of information, but is not mandatory. Proposers interested in participating in the Pre-Proposal Submission Meeting via telephone must follow these steps: (1) Dial the TELEPHONE NUMBER: 1-888-270-9936 (Toll-free North America) (2) Enter the MEETING NUMBER: 1142644 Proposers who are interested in participating via telephone should send an e-mail to the contact person listed in this RFQ expressing their intent to participate via telephone. 6. PRE-PROPOSAL INTERPRETATIONS. Oral information or responses to questions received by prospective Proposers are not binding on the City and will be without legal effect, including any information received at pre- submittal meeting or site visit(s). Only questions answered by written addenda will be binding and may supersede terms noted in this solicitation. Addendum will be released through PublicPurchase. 7. CONE OF SILENCE. Pursuant to Section 2-486 of the City Code, all procurement solicitations once advertised and until an award recommendation has been forwarded to the City Commission by the City Manager are under the "Cone of Silence." The Cone of Silence ordinance is available at http://library.municode.comlindex.aspx?clientlD=13097&statelD=9&statename=Florida. Any communication or inquiry in reference to this solicitation with any City employee or City official is strictly prohibited with the of exception of communications with the Procurement Director, or his/her administrative staff responsible for administering the procurement process for this solicitation providing said communication is limited to matters of process or procedure regarding the solicitation. Communications regarding this solicitation are to be submitted in writing to the Procurement Contact named herein with a copy to the City Clerk at RafaelGranado @miamibeachfl.gov. RFC) 2015-043-WG 4 F BEAC INA 8. SPECIAL NOTICES. You are hereby advised that this solicitation is subject to the following ordinances/resolutions, which may be found on the City Of Miami Beach website: http://web.miamibeachfl.qov/procurementlscroll.aspx?id=23510 • CONE OF SILENCE CITY CODE SECTION 2-486 • PROTEST PROCEDURES............,.................................... ..... CITY CODE SECTION 2-371 • DEBARMENT PROCEEDINGS.... ..... ................ ....... .. ............ CITY CODE SECTIONS 2-397 THROUGH 2-485.3 • LOBBYIST REGISTRATION AND DISCLOSURE OF FEES CITY CODE SECTIONS 2-481 THROUGH 2-406 • CAMPAIGN CONTRIBUTIONS BY VENDORS CITY CODE SECTION 2-487 • CAMPAIGN CONTRIBUTIONS BY LOBBYISTS ON PROCUREMENT ISSUES ........ CITY CODE SECTION 2-488 • REQUIREMENT FOR CITY CONTRACTORS TO PROVIDE EQUAL BENEFITS FOR DOMESTIC PARTNERS.................. ............. CITY CODE SECTION 2-373 • LIVING WAGE REQUIREMENT...... CITY CODE SECTIONS 2-407 THROUGH 2-410 • LOCAL PREFERENCE FOR MIAMI BEACH BASED VENDORS......... CITY CODE SECTION 2 372 • PREFERENCE FOR FLORIDA SMALL BUSINESSES OWNED AND CONTROLLED BY VETERANS AND TO STATE-CERTIFIED SERVICE- DISABLED VETERAN BUSINESS ENTERPRISES... CITY CODE SECTION 2-374 • FALSE CLAIMS ORDINANCE CITY CODE SECTION 70-300 • ACCEPTANCE OF GIFTS,FAVORS&SERVICES.............................. CITY CODE SECTION 2-449 9. POSTPONEMENT OF DUE DATE FOR RECEIPT OF PROPOSALS. The City reserves the right to postpone the deadline for submittal of proposals and will make a reasonable effort to give at least three (3) calendar days written notice of any such postponement to all prospective Proposers through PublicPurchase. 10. PROTESTS. Protests concerning the specifications, requirements, and/or terms; or protests after the proposal due date in accordance with City Code Section 2-371, which establishes procedures for protested proposals and proposed awards. Protests not submitted in a timely manner pursuant to the requirements of City Code. Section 2- 371 shall be barred. 11. VETERAN BUSINESS ENTERPRISES PREFERENCE. Pursuant to City of Miami Beach Ordinance No. 2011- 3748, the City shall give a five (5) point preference to a responsive and responsible Proposer which is a small business concern owned and controlled by a veteran(s) or which is a service-disabled veteran business enterprise. 12. DETERMINATION OF AWARD. The final ranking results of Step 1 & 2 outlined in Section V, Evaluation of Proposals, will be considered by the City Manager who may recommend to the City Commission the Proposer(s) he/she deems to be in the best interest of the City or may recommend rejection of all proposals. The City Manager's recommendation need not be consistent with the scoring results identified herein and takes into consideration Miami Beach City Code Section 2-369, including the following considerations: (1)The ability, capacity and skill of the Proposer to perform the contract. (2)Whether the Proposer can perform the contract within the time specified, without delay or interference. (3)The character,integrity, reputation,judgment, experience and efficiency of the Proposer. (4)The quality of performance of previous contracts. (5)The previous and existing compliance by the Proposer with laws and ordinances relating to the contract. The City Commission shall consider the City Manager's recommendation and may approve such recommendation. The City Commission may also, at its option, reject the City Manager's recommendation and select another Proposal or Proposals which it deems to be in the best interest of the City,or it may also reject all Proposals. Upon approval of REQ 2015-043-WG 5 • selection by the City Commission, negotiations between the City and the selected Proposer(s) will take place to arrive at a mutually acceptable Agreement. The City may award multiple vendors for each category(Resort Tax Audits or Internal Audits). 13. ACCEPTANCE OR REJECTION OF PROPOSALS. The City reserves the right to reject any or all proposals prior to award. Reasonable efforts will be made to either award the Contract or reject all proposals within one- hundred twenty (120) calendar days after proposals opening date. A Proposer may not withdraw its proposals unilaterally before the expiration of one hundred and twenty(120)calendar days from the date of proposals opening. 14. PROPOSER'S RESPONSIBILITY. Before submitting a Proposal, each Proposer shall be solely responsible for making any and all investigations, evaluations, and examinations, as it deems necessary, to ascertain all conditions and requirements affecting the full performance of the contract. Ignorance of such conditions and requirements, and/or failure to make such evaluations, investigations, and examinations, will not relieve the Proposer from any obligation to comply with every detail and with all provisions and requirements of the contract, and will not be accepted as a basis for any subsequent claim whatsoever for any monetary consideration on the part of the Proposer. 15. COSTS INCURRED BY PROPOSERS. All expenses involved with the preparation and submission of Proposals, or any work performed in connection therewith, shall be the sole responsibility (and shall be at the sole cost and expense) of the Proposer, and shall not be reimbursed by the City. 16. RELATIONSHIP TO THE CITY. It is the intent of the City, and Proposers hereby acknowledge and agree, that the successful Proposer is considered to be an independent contractor, and that neither the Proposer, nor the Proposer's employees, agents, and/or contractors, shall, under any circumstances, be considered employees or n of the City. agents .o y 17.TAXES. The City of Miami Beach is exempt from all Federal Excise and State taxes. 18. MISTAKES. Proposers are expected to examine the terms, conditions, specifications, delivery schedules, proposed pricing, and all instructions pertaining to the goods and services relative to this RFQ. Failure to do so will be at the Proposer's risk and may result in the Proposal being non-responsive. 19. PAYMENT. Payment will be made by the City after the goods or services have been received, inspected, and found to comply with contract, specifications, free of damage or defect, and are properly invoiced. Invoices must be consistent with Purchase Order format. 20. PATENTS & ROYALTIES. Proposer shall indemnify and save harmless the City of Miami Beach, Florida, and its officers, employees, contractors, and/or agents, from liability of any nature or kind, including cost and expenses for, or on account of, any copyrighted, patented, or unpatented invention, process, or article manufactured or used in the performance of the contract, including its use by the City of Miami Beach, Florida. If the Proposer uses any design, device or materials covered by letters, patent, or copyright, it is mutually understood and agreed, without exception, that the proposal prices shall include all royalties or cost arising from the use of such design, device, or materials in any way involved in the work. 21. MANNER OF PERFORMANCE. Proposer agrees to perform its duties and obligations in a professional manner and in accordance with all applicable Local, State, County, and Federal laws, rules, regulations and codes. Lack of knowledge or ignorance by the Proposer with/of applicable laws will in no way be a cause for relief from RFQ 2015-043 WG 6 miA/VilBEACH responsibility. Proposer agrees that the services provided shall be provided by employees that are educated, trained, experienced, certified, and licensed in all areas encompassed within their designated duties. Proposer agrees to furnish to the City any and all documentation, certification, authorization, license, permit, or registration currently required by applicable laws, rules, and regulations. Proposer further certifies that it and its employees will keep all licenses, permits, registrations, authorizations, or certifications required by applicable laws or regulations in full force and effect during the term of this contract. Failure of Proposer to comply with this paragraph shall constitute a material breach of this contract. Where contractor is required to enter or go on to City of Miami Beach property to deliver materials or perform work or services as a result of any contract resulting from this solicitation, the contractor will assume the full duty, obligation and expense of obtaining all necessary licenses, permits, and insurance, and assure all work complies with all applicable laws. The contractor shall be liable for any damages or loss to the City occasioned by negligence of the Proposer, or its officers, employees, contractors, and/or agents, for failure to comply with applicable laws. 22. SPECIAL CONDITIONS. Any and all Special Conditions that may vary from these General Terms and Conditions shall have precedence. 23. ANTI-DISCRIMINATION. The Proposer certifies that he/she is in compliance with the non-discrimination clause contained in Section 202, Executive Order 11246, as amended by Executive Order 11375, relative to equal employment opportunity for all persons without regard to race, color, religion, sex or national origin. 24. DEMONSTRATION OF COMPETENCY. A. Pre-award inspection of the Proposer's facility may be made prior to the award of contract. B. Proposals will only be considered from firms which are regularly engaged in the business of providing the goods and/or services as described in this solicitation. C. Proposers must be able to demonstrate a good record of performance for a reasonable period of time, and have sufficient financial capacity, equipment, and organization to ensure that they can satisfactorily perform the services if awarded a contract under the terms and conditions of this solicitation. D. The terms "equipment and organization", as used herein shall, be construed to mean a fully equipped and well established company in line with the best business practices in the industry, and as determined by the City of Miami Beach. E. The City may consider any evidence available regarding the financial, technical, and other qualifications and abilities of a Proposer, including past performance (experience), in making an award that is in the best interest of the City. F. The City may require Proposers to show proof that they have been designated as authorized representatives of a manufacturer or supplier, which is the actual source of supply. In these instances, the City may also require material information from the source of supply regarding the quality, packaging, and characteristics of the products to be supplied to the City. 25. ASSIGNMENT. The successful Proposer shall not assign, transfer, convey, sublet or otherwise dispose of the contract, including any or all of its right, title or interest therein, or his/her or its power to execute such contract, to any person, company or corporation, without the prior written consent of the City. 26. LAWS, PERMITS AND REGULATIONS. The Proposer shall obtain and pay for all licenses, permits, and inspection fees required to complete the work and shall comply with all applicable laws. 27. OPTIONAL CONTRACT USAGE. When the successful Proposer(s) is in agreement, other units of government or non-profit agencies may participate in purchases pursuant to the award of this contract at the option of the unit of IMSZYNNIZESZIOW 4112====. 422MY 410.2111=121 RFQ 201 5-043-VVG 7 fV\I ",I\i`e± BEACH government or non-profit agency. 28. VOLUME OF WORK TO BE RECEIVED BY CONTRACTOR. It is the intent of the City to purchase the goods and services specifically listed in this solicitation from the contractor. However, the City reserves the right to purchase any goods or services awarded from state or other governmental contract, or on an as-needed basis through the City's spot market purchase provisions. 29. DISPUTES. In the event of a conflict between the documents, the order of priority of the documents shall be as follows: A. Any contract or agreement resulting from the award of this solicitation; then B. Addendum issued for this solicitation, with the latest Addendum taking precedence; then C. The solicitation; then D. The Proposer's proposal in response to the solicitation. 30. INDEMNIFICATION. The contractor shall indemnify and hold harmless the City and its officers, employees, agents and instrumentalities from any and all liability, losses or damages, including attorney's fees and costs of defense, which the City or its officers, employees, agents or instrumentalities may incur as a result of claims, demands, suits, causes of actions or proceedings of any kind or nature arising out of, relating to or resulting from the performance of the agreement by the contractor or its employees, agents, servants, partners, principals or subcontractors. The contractor shall pay all claims and losses in connection therewith, and shall investigate and defend all claims, suits or actions of any kind or nature in the name of the City, where applicable, including appellate proceedings, and shall pay all costs, judgments, and attorney's fees which may be incurred thereon. The contractor expressly understands and agrees that any insurance protection required by this Agreement or otherwise provided by the contractor shall in no way limit the responsibility to indemnify, keep and save harmless and defend the City or its officers, employees, agents and instrumentalities as herein provided. The above indemnification provisions shall survive the expiration or termination of this Agreement. 31. CONTRACT EXTENSION. The City reserves the right to require the Contractor to extend contract past the stated termination date for a period of up to 120 calendar days in the event that a subsequent contract has not yet been awarded. Additional extensions past the 120 calendar days may occur as needed by the City and as mutually agreed upon by the City and the contractor 32. FLORIDA PUBLIC RECORDS LAW. Proposers are hereby notified that all Proposals including, without limitation, any and all information and documentation submitted therewith, are exempt from public records requirements under Section 119.07(1), Florida Statutes, and s. 24(a), Art. 1 of the State Constitution until such time as the City provides notice of an intended decision or until thirty (30) calendar days after opening of the proposals, whichever is earlier. Additionally, Contractor agrees to be in full compliance with Florida Statute 119.0701 including, but not limited to, agreement to (a) Keep and maintain public records that ordinarily and necessarily would be required by the public agency in order to perform the services; (b) provide the public with access to public records on the same terms and conditions that the public agency would provide the records and at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law; (c) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law; (d) Meet all requirements for retaining public records and transfer, at no cost, to the public agency all public records in possession of the contractor upon termination of the contract and destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the public agency in a format that is compatible with the information technology systems of the public agency. RFQ 2015-043-WG 8 MIAMI BEACH 33. MODIFICATION/WITHDRAWALS OF PROPOSALS. A Proposer may submit a modified Proposal to replace all or any portion of a previously submitted Proposal up until the Proposal due date and time. Modifications received after the Proposal due date and time will not be considered. Proposals shall be irrevocable until contract award unless withdrawn in writing prior to the Proposal due date, or after expiration of 120 calendar days from the opening of Proposals without a contract award. Letters of withdrawal received after the Proposal due date and before said expiration date, and letters of withdrawal received after contract award will not be considered. 34. EXCEPTIONS TO RFQ. Proposers must clearly indicate any exceptions they wish to take to any of the terms in this RFQ, and outline what, if any, alternative is being offered. All exceptions and alternatives shall be included and clearly delineated, in writing, in the Proposal. The City, at its sole and absolute discretion, may accept or reject any or all exceptions and alternatives. In cases in which exceptions and alternatives are rejected, the City shall require the Proposer to comply with the particular term and/or condition of the RFQ to which Proposer took exception to (as said term and/or condition was originally set forth on the RFQ). 35. ACCEPTANCE OF GIFTS, FAVORS, SERVICES. Proposers shall not offer any gratuities, favors, or anything of monetary value to any official, employee, or agent of the City, for the purpose of influencing consideration of this Proposal. Pursuant to Sec. 2-449 of the City Code, no officer or employee of the City shall accept any gift, favor or service that might reasonably tend to improperly influence him/her in the discharge of his official duties. i i 1 RFQ 20 i 5-043-WG 9 } :4{lAM!BEACH SECTION 0300 PROPOSAL SUBMITTAL INSTRUCTIONS AND FORMAT 1. SEALED RESPONSES. One original Proposal (preferably in 3-ring binder) must be submitted in an opaque, : sealed envelope or container on or before the due date established for the receipt of proposals. Additionally, ten (10) bound copies and one (1) electronic format (CD or USB format) are to be submitted. The following information should be clearly marked on the face of the envelope or container in which the proposal is submitted: solicitation number, solicitation title, Proposer name, Proposer return address. Proposals received electronically, either through email or facsimile, are not acceptable and will be rejected. Proposals are to be delivered to City of Miami Beach Procurement Department, 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139. 2. LATE BIDS. Bid Proposals are to be received on or before the due date established herein for the receipt of Bids. Any Bid received after the deadline established for receipt of proposals will be considered late and not be accepted or will be returned to Proposer unopened. The City does not accept responsibility for any delays, natural or otherwise. 3. PROPOSAL FORMAT. In order to maintain comparability, facilitate the review process and assist the Evaluation Committee in review of proposals, it is strongly recommended that proposals be organized and tabbed in accordance with the sections and manner specified below. Hard copy submittals should be tabbed as enumerated below and contains a table of contents with page references. Electronic copies should also be tabbed and contain a table of contents with page references. Proposals that do not include the required information will be deemed non- ' responsive and will not be considered. *MTA14 Cover Letter&Minimum Qualifications Requirements 1.1 Cover Letter and Table of Contents. The cover letter must indicate Proposer and Proposer Primary Contact for the purposes of this solicitation.Additionally, the Cover Letter must state which category of audit(resort tax audit or internal audits) the proposal is intended. Those Proposers wishing to submit proposals for both categories must submit two proposals—one for each category. 1.2 Proposal Certification, Questionnaire & Requirements Affidavit (Appendix A). Attach Appendix A fully completed and executed. 1.3 Minimum Qualifications Requirements. Submit verifiable information documenting compliance with the minimum qualifications requirements established in Appendix C, Minimum Requirements and Specifications. TAB 2r. Experience&Qualifications 2.1 Qualifications of Proposer. Submit detailed information regarding the firm's history and relevant experience and proven track record of providing the scope of services similar as identified in this solicitation, including experience in providing similar scope of services to public sector agencies. For each project that the Proposer submits as evidence of similar experience, the following is required: project description, agency name, agency contact, contact telephone & email, and year(s)and term of engagement. If the proposer is an individual, rather than a firm, the same information is to be provided. 2.2 Qualifications of Proposer Team. Provide an organizational chart of all personnel and consultants to be used if • awarded, the role that each team member will play in providing the services detailed herein and each team members' qualifications. A resume of each individual, including education, experience, and any other pertinent information, shall be included for each Proposal team member to be assigned to this contract. Note: After proposal submittal, the City reserves the right to require additional information from Proposers (or Proposer team members or sub-consultants) to determine: qualifications (including, but not limited to, litigation history, regulatory action, or additional references); and financial capability (including, but not limited to, annual reviewed/audited financial statements with the auditors notes for each of their last two complete fiscal years). j RFQ 201 5-043-WG 10 SECTION 0400 PROPOSAL EVALUATION 1. Evaluation Committee. An Evaluation Committee, appointed by the City Manager, shall meet to evaluate each Proposal in accordance with the requirements set forth in the solicitation. If further information is desired, Proposers may be requested to make additional written submissions of a clarifying nature or oral presentations to the Evaluation Committee. The evaluation of proposals will proceed in a two-step process as noted below. It is important to note that the Evaluation Committee will score the qualitative portions of the proposals only. The Evaluation Committee does not make an award recommendation to the City Manager. The results of Step 1 & Step 2 Evaluations will be forwarded to the City Manager who will utilize the results to make a recommendation to the City Commission. 2. Step 1 Evaluation. The first step will consist of the qualitative criteria listed below to be considered by the Evaluation Committee. The second step will consist of quantitative criteria established below to be added to the Evaluation Committee results by the Department of Procurement Management. An Evaluation Committee, appointed by the City Manager, shall meet to evaluate each Proposal in accordance with the qualifications criteria established below for Step 1, Qualitative Criteria. In doing so, the Evaluation Committee may: • review and score all proposals received, with or without conducting interview sessions; or • review all proposals received and short-list one or more Proposers to be further considered during subsequent interview session(s) (using the same criteria). Step 1-Qualitative Criteria Proposals shall be evaluated in accordance with the following evaluation criteria (in no particular order or weight): • Qualifications of the proposing firm • Similar project experience • References • Team member qualifications • Financial capacity • Litigation History • or Other Factors or Information Requested under this RFQ TOTAL AVAILABLE STEP 1 POINTS 100 3. Step 2 Evaluation. Following the results of Step 1 Evaluation of qualitative criteria, the Proposers may receive additional quantitative criteria points to be added by the Department of Procurement Management to those points earned in Step 1, as follows. Step 2-Quantitative Criteria Veterans Preference 5 TOTAL AVAILABLE STEP 2 POINTS 5 RFQ 2015-043-WG 11 Mit t}€f f BFACH 5. Determination of Final Ranking. At the conclusion of the Evaluation Committee Step 1 scoring, Step 2 Points will be added to each evaluation committee member's scores by the Department of Procurement Management. Step 1 and 2 scores will be converted to rankings in accordance with the example below: ' _ .ZP' !fP'ti„ti, i _ r. �j ;Xr,-c°Is��P j.sr`Kf3�..;77c; ,rS"�q+ ,1...-.�. s•ya°.L! v., A ''t i.. ^_• i F� _ .�i •�. •y. � .. ,3:;, } Proposer A. 9r. ProposerB :Proposer C=L Step 1 Points � 82 76 80 Step2 Points 22 15 12 Committee Total 104 91 92 Member 1 Rank 1 3 2 ■ Step 1 Points 79 85 72 Step 2 Points 22 15 12 Committee Total 101 100 84 Member 2 Rank 1 2 3 Step 1 Points 80 74 66 Step 2 Points 22 15 12 Committee Total 102 89 78 Member 2 Rank 1 2 3 r ., 'ri"#.°�,?�-"i :zh`a •} ',, ,�'t'i{ -f.'t".e. ek 4.f i� t fill !• , •+�.7 t +,{ - e5 t''� 'i .. ps�T:Y� Low Aggrregate Score 'L ,1 3J ., � 7 i s '� r,a 4. g., ,'� .£ .��-�s a{-.`.fi� ` 04:f Thal Rankirig�`C 1r: p 2 46V27� 3 *Final Ranking is presented to the City Manager for further due diligence and recommendation to the City Commission. Final Ranking does not constitute an award recommendation until such time as the City Manager has made his recommendation to the City Commission, which may be different than final ranking results. RFQ 20 15-C43-VVG 12 APPENDIX A LA. MBEACH Proposal Certification , Questionnaire & Requirements Affidavit 2015-043-W G AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DEPARTMENT 1700 Convention Center Drive Miami Beach, Florida 33139 Solicitation No: Solicitation Title: 2015-043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS • NEEDED Procurement Contact: Tel: Email: William Garviso 305.673.7000 x 6650 williamgarviso @miamibeachfl.gov PROPOSAL CERTIFICATION, QUESTIONNAIRE & REQUIREMENTS AFFIDAVIT Purpose: The purpose of this Proposal Certification, Questionnaire and Requirements Affidavit Form is to inform prospective Proposers of certain solicitation and contractual requirements, and to collect necessary information from Proposers in order that certain portions of responsiveness, responsibility and other determining factors and compliance with requirements may be evaluated. This Proposal Certification, Questionnaire and Requirements Affidavit Form is a REQUIRED FORM that must be submitted fully completed and executed. General Proposer Information. PROPOSER NAME: No of Years in Business: No of Years in Business Locally: No.of Employees: OTHER NAME(S)PROPOSER HAS OPERATED UNDER IN THE LAST 10 YEARS: PROPOSER PRIMARY ADDRESS(HEADQUARTERS): CITY: STATE: ZIP CODE: TELEPHONE NO.: TOLL FREE NO.: FAX NO.: FIRM LOCAL ADDRESS: CITY: STATE: ZIP CODE: PRIMARY ACCOUNT REPRESENTATIVE FOR THIS ENGAGEMENT: ACCOUNT REP TELEPHONE NO.: ACCOUNT REP TOLL FREE NO.: ACCOUNT REP EMAIL: FEDERAL TAX IDENTIFICATION NO.: The City reserves the right to seek additional information from Proposer or other source(s),including but not limited to: any firm or principal information, applicable licensure, resumes of relevant individuals, client information, financial information, or any information the City deems necessary to evaluate the capacity of the Proposer to perform in accordance with contract requirements. 14 . �, �ew.. _ ....... i 1 Veteran Owned Business.Is Proposer claiming a veteran owned business status? I YES NO I SUBMITTAL REQUIREMENT: Proposers claiming veteran owned business status shall submit a documentation proving that firm is certified as a veteran-owned business or a service-disabled veteran owned business, by the State of Florida or United States federal government, as required pursuant to ordinance 2011-3748. 'I 2. Conflict Of Interest. All Proposers must disclose, in their Proposal, the name(s) of any officer, director, agent, or immediate family member(spouse, parent,sibling, and child)who is also an employee of the City of Miami Beach. Further, all Proposers must disclose the name of any City employee who owns, either directly or indirectly,an interest of ten(10%)percent or more in the Proposer entity or any of its affiliates. SUBMITTAL REQUIREMENT: Proposers must disclose the name(s) of any officer, director, agent, or immediate family member(spouse, parent, sibling, and child)who is also an employee of the City of Miami Beach. Proposers must also disclose the name of any City employee who owns,either directly or indirectly, an interest of ten(10%)percent or more in the Proposer entity or any of its affiliates 3. References & Past Performance. Proposer shall submit at least three (3) references for whom the Proposer has completed work similar in size and nature as the work referenced in solicitation. SUBMITTAL REQUIREMENT: For each reference submitted, the following information is required: 1) Firm Name, 2)Contact Individual Name&Title,3)Address,4)Telephone,5)Contact's Email and 6)Narrative on Scope of Services Provided. 4. Litigation History.Proposer shall submit a statement of any liti ation or regulatory action that has been filed 9 rY p Y 9 9 ry against your firm(s) in the last five years. If an action has been filed, state and describe the litigation or regulatory action filed, and identify the court or agency before which the action was instituted, the applicable case or file number,and the status or disposition for such reported action. If no litigation or regulatory action has been filed against your firm(s),provide a statement to that effect. If"No"litigation or regulatory action has been filed against your firm(s),please provide a statement to that effect.Truthful and complete answers to this question may not necessarily disqualify a firm from consideration but will be a factor in the selection process. Untruthful, misleading or false answers to this question shall result in the disqualification of the firm for this project. SUBMITTAL REQUIREMENT: Proposer shall submit history of litigation or regulatory action filed against proposer, or any proposer team member firm, in the past 5 years. If Proposer has no litigation history or regulatory action in the past 5 years,submit a statement accordingly. 5. Suspension,Debarment or Contract Cancellation.Has Proposer ever been debarred,suspended or other legal violation,or had a contract cancelled due to non- erformance by any public sector agency? YES ] NO SUBMITTAL REQUIREMENT: If answer to above is'`YES,"Proposer shall submit a statement detailing the reasons that led to action(s). ) ij 15 t { II { 6. Vendor Campaign Contributions. Proposers are expected to be or become familiar with, the City's Campaign Finance Reform laws, as codified in Sections 2-487 through 2-490 of the City Code. Proposers shall be solely responsible for ensuring that all applicable provisions of the City's Campaign Finance Reform laws are complied with, and shall be subject to any and all sanctions, as prescribed therein, including disqualification of their Proposals,in the event of such non-compliance. II SUBMITTAL REQUIREMENT: Submit the names of all individuals or entities (including your sub- consultants) with a controlling financial interest as defined in solicitation. For each individual or entity with a controlling financial interest indicate whether or not each individual or entity has contributed to the campaign either directly or indirectly,of a candidate who has been elected to the office of Mayor or City Commissioner for the City of Miami Beach. 7. Code of Business Ethics. Pursuant to City Resolution No.2000-23879,each person or entity that seeks to do business with the City shall adopt a Code of Business Ethics ("Code") and submit that Code to the Procurement Division with its proposal/response or within five (5) days upon receipt of request. The Code shall, at a minimum, require the Proposer, to comply with all applicable governmental rules and regulations including,among others,the conflict of interest,lobbying and ethics provision of the City of Miami Beach and Miami Dade County. SUBMITTAL REQUIREMENT: Proposer shall submit firm's Code of Business Ethics. In lieu of submitting Code of Business Ethics, Proposer may submit a statement indicating that it will adopt, as required in the ordinance,the City of Miami Beach Code of Ethics,available at www.miamibeachfl.gov/procurement/. 8. . •- •-• - - - - -!: : .. - • -- _ - - - . - - - - o The- City's cucent li i g -wage -cate is $12.92/hourly without health benefits or ! .:• :• - -! ! •_ .. - - - .• ; • January 1,2015. i&ued by the U.S. Department of Labor's Bureau of Labor - • • • -•:'•: _ --•:.•: •: P °ulac year}: •' • '• •• . • .. '..• ••.•. - :•-•• ! ::: •e• - •1• • •. .• •• I 1 SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document,Proposer agrees to the living wage requirement. { I ! i { II 16 { I { i i { it 9. Equal Benefits for Employees with Spouses and Employees with Domestic Partners. When awarding competitively solicited contracts valued at over$100,000 whose contractors maintain 51 or more full time employees on their payrolls during 20 or more calendar work weeks, the Equal Benefits for Domestic Partners Ordinance 2005-3494 requires certain contractors doing business with the City of Miami Beach, who are awarded a contract pursuant to competitive proposals, to provide "Equal Benefits" to their employees with domestic partners,as they provide to employees with spouses.The Ordinance applies to all !; employees of a Contractor who work within the City limits of the City of Miami Beach, Florida; and the Contractor's employees located in the United States, but outside of the City of Miami Beach limits, who are directly performing work on the contract within the City of Miami Beach. ' A. Does your company provide or offer access to any benefits to employees with spouses or to spouses of employees? YES NO 1 i i{ B. Does your company provide or offer access to any benefits to employees with (same or opposite sex) domestic partners*or to domestic partners of em loyees? YES NO I' ij I f s 1 7� 3 l7 33 3 I i I l i 1 I" 1 Is C. Please check all benefits that apply to your answers above and list in the"other"section any additional benefits not already specified. Note: some benefits are provided to employees because they have a spouse or domestic partner, such as bereavement leave; other benefits are provided directly to the • spouse or domestic partner,such as medical insurance. ; BENEFIT Firm Provides for Firm Provides for Firm does not 1 Employees with Employees with Provide Benefit Spouses Domestic Partners Health i Sick Leave Family Medical Leave Bereavement Leave If Proposer cannot offer a benefit to domestic partners because of reasons outside your control, (e.g., there are no insurance providers in your area willing to offer domestic partner coverage) you may be eligible for Reasonable Measures compliance. To comply on this basis, you must agree to pay a cash equivalent and submit a completed Reasonable Measures Application (attached) with all necessary documentation. Your Reasonable Measures Application will be reviewed for consideration by the City Manager, or his designee. Approval is not guaranteed and the City Manager's decision is final. Further information on the Equal Benefits requirement is available at www.miamibeachfl.gov/procurement/. 1 10. Public Entity Crimes. Section 287.133(2)(a), Florida Statutes, as currently enacted or as amended from time to time, states that a person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a proposal,proposal,or reply on a contract to provide any goods or services to a public entity;may not submit a proposal,proposal,or reply on a contract with a public entity for the construction or repair of a public building or public work; may not submit proposals, proposals, or replies on leases of real roe to a public entity; may not be awarded or perform work as a contractor, P property�Y P ty. Y P , supplier, subcontractor,or consultant under a contract with any public entity; and may not transact business with any public entity in excess of the threshold amount provided in s. 287.017 for CATEGORY TWO for a 1 period of 36 months following the date of being placed on the convicted vendor list. I I SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document, Proposer agrees with the requirements of Section 287.133, Florida Statutes, and certifies it has Inot been placed on convicted vendor list. 11. Acknowledgement of Addendum. After issuance of solicitation, the. City may release one or more 4 addendum to the solicitation which may provide additional information to Proposers or alter solicitation 1 requirements. The City will strive to reach every Proposer having received solicitation through the City's e- I procurement system, PublicPurchase.com. However, Proposers are solely responsible for assuring they I have received any and all addendum issued pursuant to solicitation. This Acknowledgement of Addendum section certifies that the Proposer has received all addendum released by the City pursuant to this solicitation. Failure to obtain and acknowledge receipt of all addendum may result in proposal disqualification. } Initial to Confirm Initial to Confirm Initial to Confirm Receipt Receipt Receipt Addendum 1 Addendum 6 Addendum 11 1 Addendum 2 Addendum 7 Addendum 12 Addendum 3 Addendum 8 Addendum 13 Addendum 4 Addendum 9 Addendum 14 Addendum 5 Addendum 10 Addendum 15 I If additional confirmation of addendum is required,submit under separate cover. i 4 0 18 1 I 1 x , Y DISCLOSURE,AND`DISCLAIMER'SECTION¥�rt ,�. 4 .F. ,,._i f The solicitation referenced herein is being furnished to the recipient by the City of Miami Beach (the 'City") for the recipients convenience.Any action taken by the City in response to Proposals made pursuant to this solicitation,or in making any award,or in failing or refusing to make any award pursuant to such Proposals,or in cancelling awards,or in withdrawing or cancelling this solicitation,either before or after issuance of an award,shall be without any liability or obligation on the part of the City. In its sole discretion, the City may withdraw the solicitation either before or after receiving proposals, may accept or Y Y 9P p Y P reject proposals, and may accept proposals which deviate from the solicitation, as it deems appropriate and in its best interest. In its sole discretion, the City may determine the qualifications and acceptability of any party or parties submitting Proposals in response to this solicitation. Following submission of a Bid or Proposal, the applicant agrees to deliver such further details, information and assurances, including financial and disclosure data, relating to the Proposal and the applicant including, without limitation, the applicant's affiliates, officers, directors, shareholders, partners and employees, as requested by the City in its discretion. The information contained herein is provided solely for the convenience of prospective Proposers. It is the responsibility of the recipient to assure itself that information contained herein is accurate and complete.The City does not provide any assurances as to the accuracy of any information in this solicitation. Any reliance on these contents, or on any permitted communications with City officials,shall be at the recipient's own risk. Proposers should rely exclusively on their own investigations, interpretations, and analyses. The solicitation is being provided by the City without any warranty or representation,express or implied,as to its content,its accuracy,or its completeness. No warranty or representation is made by the City or its agents that any Proposal conforming to these requirements will be selected for consideration,negotiation,or approval. The City shall have no obligation or liability with respect to this solicitation, the selection and the award process, or whether any award will be made. Any recipient of this solicitation who responds hereto fully acknowledges all the provisions of this Disclosure and Disclaimer, is totally relying on this Disclosure and Disclaimer, and agrees to be bound by the terms hereof.Any Proposals submitted to the City pursuant to this solicitation are submitted at the sole risk and responsibility of the party submitting such Proposal. This solicitation is made subject to correction of errors, omissions, or withdrawal from the market without notice. Information is for guidance only,and does not constitute all or any part of an agreement. The City and all Proposers will be bound only as, if and when a Proposal (or Proposals), as same may be modified, and the applicable definitive agreements pertaining thereto, are approved and executed by the parties, and then only pursuant to the terms of the definitive agreements executed among the parties. Any response to this solicitation may be accepted or rejected by the City for any reason,or for no reason,without any resultant liability to the City. The City is governed by the Government-in-the-Sunshine Law, and all Proposals and supporting documents shall be subject to disclosure as required by such law. All Proposals shall be submitted in sealed proposal form and shall remain confidential to the extent permitted by Florida Statutes, until the date and time selected for opening the responses.At that time,all documents received by the City shall become public records. Proposers are expected to make all disclosures and declarations as requested in this solicitation. By submission of a Proposal, the Proposer acknowledges and agrees that the City has the right to make any inquiry or investigation it deems appropriate to substantiate or supplement information contained in the Proposal,and authorizes the release to the City of any and all information sought in such inquiry or investigation. Each Proposer certifies that the information contained in the Proposal is true,accurate and complete,to the best of its knowledge,information,and belief. Notwithstanding the foregoing or anything contained in the solicitation, all Proposers agree that in the event of a final unappealable judgment by a court of competent jurisdiction which imposes on the City any liability arising out of this solicitation, or any response thereto, or any action or inaction by the City with respect thereto, such liability shall be limited to $10,000.00 as agreed-upon and liquidated damages. The previous sentence, however, shall not be construed to circumvent any of the other provisions of this Disclosure and Disclaimer which imposes no liability on the City. 19 ii I In the event of any differences in language between this Disclosure and Disclaimer and the balance of the solicitation, it is understood that the provisions of this Disclosure and Disclaimer shall always govern. The solicitation and any disputes arising from the solicitation shall be governed by and construed in accordance with the laws of the State of Florida. • • 20 I � 1 „_ ,`.„„: 1 ', PROPOSERCERTIFI CAT ION`; ',- a_ti}. =_ I hereby certify that: I, as an authorized agent of the.Proposer, am submitting the following information as my firm's proposal; Proposer agrees to complete and unconditional acceptance of the terms and conditions of this document, inclusive of this solicitation, all attachments, exhibits and appendices and the contents of any Addenda released hereto, and the Disclosure and Disclaimer Statement; Proposer agrees to be bound to any and all specifications, terms and . conditions contained in the solicitation, and any released Addenda and understand that the following are requirements of this solicitation and failure to comply will result in disqualification of proposal submitted; Proposer has not divulged, discussed,or compared the proposal with other Proposers and has not colluded with any other Proposer or party to any other proposal; Proposer acknowledges that all information contained herein is part of the public domain as defined by the State of Florida Sunshine and Public Records Laws; all responses, data and information contained in this proposal, inclusive of the Proposal Certification, Questionnaire and Requirements Affidavit are true and accurate. Name of Proposer's Authorized Representative: Title of Proposer's Authorized Representative: Signature of Proposers Authorized Representative: Date: State of ) On this day of ,20_,personally appeared before me who County of ) stated that (s)he is the of , a corporation, and that the instrument was signed in behalf of the said corporation by authority of its board of directors and acknowledged said instrument to be its voluntary act and deed. Before me: Notary Public for the State of My Commission Expires: . F . ) 2 l L i APPENDIX B eth AA A A I p A bb o Bid " 2015-043-W G AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DEPARTMENT 1700 Convention Center Drive Miami Beach, Florida 33139 Note: It is important for those vendors who have received notification of this solicitation but hove decided not to respond, to complete and submit the attached "Statement of No Bid." The "Statement of No Bid" provides the City with information on how to improve the solicitation process. Failure to submit a "Statement of No Bid" may result in not being notified iof future solicitations b the City: Statement of No Bid 22 3 1 WE HAVE ELECTED NOT TO SUBMIT A PROPOSAL AT THIS TIME FOR REASON(S) CHECKED AND/OR INDICATED BELOW: Workload does not allow us to proposal Insufficient time to respond Specifications unclear or too restrictive Unable to meet specifications Unable to meet service requirements Unable to meet insurance requirements Do not offer this product/service OTHER. (Please specify) `4^ `i!✓.i4.iw.i4et {•- +.} ,.+lw.ti.,s'-i:-r).:f V/:•.-:iK%f-:s'7`,?`is:.riae-,:�r...*�:4YtCr�. t.^=`u 7$-..uti .'GS,4'9-;rn eR,:.tx,•..s.,..i sr•--• r..r'X, ...,,:'..• 1-r7!tw i_e,t"::';.uti'..:"fir:eur We do_do not_want to be retained on your mailing list for future proposals of this type product and/or service. Signature: Title: Legal Company Name: Note: Failure to respond, either by submitting a proposal or this completed form, may result in your company being removed from our vendors list. PLEASE RETURN TO: CITY OF MIAMI BEACH PROCUREMENT DEPARTMENT ATTN: William Garviso RFQ PROPOSAL#2015-043-WG 1700 Convention Center Drive MIAMI BEACH, FL 33139 .i APPENDIX C At A A r , pi \lk m r Minimum Re Specifications 2015-043-W G AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DEPARTMENT 1700 Convention Center Drive Miami Beach, Florida 33139 • i II ■ C1. RESORT TAX AUDITS—MINIMUM REQUIREMENTS AND PROJECT SPECIFICATIONS. C1.1 — Minimum Requirements for Resort Tax Audits. The Minimum Eligibility Requirements for this category are listed below. Proposer shall submit detailed verifiable information affirmatively documenting compliance with each minimum requirement. Proposers that fail to comply with minimum requirements will be deemed non-responsive and will not be considered. A. Proposer must be registered to do business within the State of Florida for a period of not less than one(1) prior to the due date for of ) P receipt p proposals. B. For audits of resort tax businesses, the respondent must have at least three (3) years of experience in audits of revenues for hotels, restaurants, nightclubs and apartment buildings. For each experience proposer must submit as evidence: contact name, telephone number,email and year(s) of experience for verification purposes. C. Proposer must maintain a permanent office within Miami-Dade, Broward or Palm Beach County upon award of contract, documented through a Business Tax Receipt, Occupational License or its equivalent. C1.2 — Project Specifications for Resort Tax Audits. Audits are to be performed on businesses registered with the City for collecting resort taxes. The scope of the work consists of examining the taxpayer's accounting records, such as general ledgers, cash receipts journals, sales journals, and other records as may be maintained by the taxpayer; comparison of reported taxable sales with other reports such as Florida sales tax reports, and the preparation of schedules and analyses of work to determine compliance with the City Code • relating to the collection and payment. All taxpayers' records which are subject to, determined to be, or administered by the Resort Tax codes are examined. Detailed testing is performed on a sample basis. Contractor is to follow the City's. Internal Audit programs for auditing resort tax businesses. There are separate programs for the annual filing and the monthly filing accounts. Revenues reported in monthly filing accounts may vary by containing revenues from rooms, food and or alcohol. City forms and audit programs are attached as exhibits and will be provided in electronic format. Also included in the work to be performed is the initial contact with the business and the performance of an audit which results in the issuance of a resolution letter stating the results of the audit. Each audit is completed by the submission of work papers and a resolution letter to the Internal Auditor for final review and approval. The Internal Audit Department will assign these audits. Audit period for each audit assignment is three years. It is anticipated that the total number of audits assigned to the contractors will be about 70 audits per year. I.. C2. INTERNAL AUDITS—MINIMUM REQUIREMENTS AND PROJECT SPECIFICATIONS. C2.1 — Minimum Requirements for Internal Audits. The Minimum Eligibility Requirements for this category are listed below. Proposer shall submit detailed verifiable information affirmatively documenting compliance with each minimum requirement. Proposers that fail to comply with minimum requirements will be deemed non-responsive and will not be considered. A. Proposer must be registered to do business within the State of Florida for a period of not less than one (1) prior to the due date for receipt of proposals. B. The respondent must have three (3) years of experience providing ALL of the following services to governmental and/or public sector agencies: a. Internal Financial Audits b. Internal Operational Audits c. Forensic Audits For each experience (a-c), proposer must submit as evidence: agency name, brief scope of work provided, contact name, contact telephone number, contact email and year(s)of experience for verification purposes. C. Proposer must be a member of the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. D. Proposer must maintain a permanent office within Miami-Dade, Broward or Palm Beach County upon award of contract, documented through a Business Tax Receipt, Occupational License or its equivalent. C2.2— Project Specifications for Internal Audits. The scope of the work for internal audits will be contingent to the type of audit requested. Types of audits which maybe requested will comprise of Financial Audits, Attestation Engagements (includes examinations, review or agreed upon procedures), and Performance Audits. Audit work should be performed in accordance to governmental auditing standards. In addition, Forensic Audits may be requested. Contractor is to develop audit programs for the scope of work provided. Audit findings are to be presented to the City Administration. Prior to authorizing work on an internal audit, the successful proposers will be required to submit a price proposal based on the number of hours estimated to complete the work and a price per hour that is less than or equal to the per hour proposal price. The City shall, at its sole option, determine whether to proceed with the scope of work. Each audit is completed by the submission a final report accepted by the City. a 1 1 k� It I j1 ii } APPENDIX D ! i t\ A { Att , \ t—\ i f i i i Special 2015 043 WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DEPARTMENT 1700 Convention Center Drive Miami Beach, Florida 33139 1 j I { ! i � I 1. INDEPENDENCE OF AUDITORS. All parties must be independent of the City as defined by generally accepted auditing standards and Government Auditing Standards. 2. TERM OF CONTRACT. The contract shall commence upon the date of notice of award and shall be effective for two (2)years. 3. OPTION TO RENEW. The City, through its City Manager, will have the option to extend for three (3) additional one-year periods subject to the availability of funds for succeeding fiscal years. Continuation of the contract beyond the initial period is a City prerogative; not a right of the bidder. This prerogative will be exercised only when such continuation is clearly in the best interest of the City. 5. FAILURE TO PERFORM. Should it not be possible to reach the contractor or supervisor and/or should remedial action not be taken within 48 hours of any failure to perform according to specifications, the City reserves the right to declare Contractor in default of the contract or make appropriate reductions in.the contract payment. 6. ADDITIONAL SERVICES. Services not specifically identified in this request may be added to any resultant contract upon successful negotiations (including fees) and mutual consent of the contracting parties. The Purchase Order shall act as the contract amendment authorizing the additional services. 7. RECORDS. During the contract period, and for at least five (5) subsequent years thereafter, Successful Proposer shall provide the City access to all files and records maintained on the City's behalf. APPENDIX E AA I MAI C ,• -11* Sample Agreement 2015-043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDE.D PROCUREMENT DIVISION 1700 Convention Center Drive Miami Beach, Florida 33139 5 1 € i APPENDIX E PROPOSAL TENDER FORM PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF MIAMI BEACH AND [FILL IN CONSULTANT NAME] FOR [XXXXXXXXXXXXXXXX], PURSUANT TO [FILL IN RFQ, RFQ, OR ITB#] This Professional Services Agreement ("Agreement") is entered into this XXXXXX day of XXXXXXXXXXXX, 2010, between the CITY OF MIAMI BEACH, FLORIDA, a municipal corporation organized and existing under the laws of the State of Florida, having its principal P 9 9 9 P P offices at 1700 Convention Center Drive, Miami Beach, Florida, 33139 ("City"), and [FILL IN CONSULTANT NAME], a [FILL IN TYPE OF ENTITY/I.E. CORPORATION, LLC, ETC.], whose address is XXXXXXXXX XXXXXXXXX (Consultant). SECTION 1 DEFINITIONS Agreement: This Agreement between the City and Consultant, including any exhibits and amendments thereto. City Manager: The chief administrative officer of the City. Consultant: For the purposes of this Agreement, Consultant shall be deemed. to be an independent contractor, and not an agent or employee of the City. Services: All services, work and actions by the Consultant performed or undertaken pursuant to the Agreement. Fee: Amount paid to the Consultant as compensation for Services. Proposal Documents: Proposal Documents shall mean City of Miami Beach [FILL IN RFQ, RFQ, OR ITB] No. [XXXXXXXXXXXXXX] for [XXXXXXXXXXXXXXXXXXXXXX], together with all amendments thereto, issued by the City in contemplation of this Agreement [FILL IN CORRECT ABBREVIATION RFQ, RFQ, OR ITB], and the Consultant's proposal in response thereto (Proposal), all of which are hereby incorporated and made a part hereof; provided, however, that in the event of an express conflict between the Proposal Documents and this Agreement, the following order of precedent shall prevail: this Agreement; the [FILL IN RFQ, RFQ, or ITB]; and the Proposal. Risk Manager: The Risk Manager of the City, with offices at 1700 Convention Center Drive, Third Floor, Miami Beach, Florida 33139: telephone number(305) 673-7000, Ext. 6435: and fax number(305) 673-7023. • fi i SECTION 2 SCOPE OF SERVICES (SERVICES) 2.1 In consideration of the Fee to be paid to Consultant by the City, Consultant shall provide the work and services described in Exhibit"A" hereto (the Services). [NOTE: EXHIBIT"A" MUST INCLUDE DETAILED DESCRIPTION OF SERVICES] 2.2 Consultant's Services, and any deliverables incident thereto, shall be completed in accordance with the timeline and/or schedule in Exhibit [XXX] hereto. [NOTE: TIMELINE FOR DELIVERABLES CAN ALSO BE INCLUDED IN EXHIBIT "A" OR IN SEPARATE EXHIBIT] SECTION 3 TERM The term of this Agreement (Term) shall commence upon execution of this Agreement by all parties hereto, and shall have an initial term of [XXXXX XXXXXX], with [XXXXXXXXXX] renewal options, to be exercised at the City Manager's sole option and discretion, by providing Consultant with written notice of same no less than thirty (30) days prior to the expiration of the initial term. Notwithstanding the Term provided herein, Consultant shall adhere to any specific timelines, schedules, dates, and/or performance milestones for completion and delivery of the Services, as same is/are set forth in the timeline and/or schedule referenced in Exhibit [XXX] hereto. SECTION 4 FEE 4.1 In consideration of the Services to be provided, Consultant shall be compensated on a fixed fee basis, in the amount of$XXXXXXXX. 4.2 [NOTE: INCLUDE AMOUNT FOR REIMBURSABLES, IF ANY]. 4.3 [NOTE: INCLUDE HOW FEE IS TO BE PAID — I.E. "X" PERCENTAGE UP FRONT; "X" UPON DELIVERY; MONTHLY; LUMP SUM; ETC.]. 4.4 INVOICING Upon receipt of an acceptable and approved invoice, payment(s) shall be made within thirty (30) days for that portion (or those portions) of the Services satisfactorily rendered (and referenced in the particular invoice). Invoices shall include a detailed description of the Services (or portions thereof) provided, and 'l f shall be submitted to the City at the following address: SECTION 5 TERMINATION 5.1 TERMINATION FOR CAUSE If the Consultant shall fail to fulfill in a timely manner, or otherwise violates, any of the covenants, agreements, or stipulations material to this Agreement, the City, through its City Manager, shall thereupon have the right to terminate this Agreement for cause. Prior to exercising its option to terminate for cause, the City shall notify the Consultant of its violation of the particular term(s) of this Agreement, and shall grant Consultant ten (10) days to cure such default. If such default remains uncured after ten (10) days, the City may terminate this Agreement without further notice to Consultant. Upon termination, the City shall be fully discharged from any and all liabilities, duties, and terms arising out of, or by virtue of, this Agreement. Notwithstanding the above, the Consultant shall not be relieved of liability to the City for damages sustained by the City by any breach of the Agreement by the Consultant. The City, at its sole option and discretion, shall be entitled to bring any and all legal/equitable actions that it deems to be in. its best interest in order to enforce the City's right and remedies against Consultant. The City shall be entitled to recover all costs of such actions,. including reasonable attorneys' fees. 5.2 TERMINATION FOR CONVENIENCE OF THE CITY THE CITY MAY ALSO, THROUGH ITS CITY MANAGER, AND FOR ITS CONVENIENCE AND WITHOUT CAUSE, TERMINATE THE AGREEMENT AT ANY TIME DURING THE TERM BY GIVING WRITTEN NOTICE TO CONSULTANT OF SUCH TERMINATION; WHICH SHALL BECOME EFFECTIVE WITHIN THIRTY (30) DAYS FOLLOWING RECEIPT BY THE CONSULTANT OF SUCH NOTICE. IF THE AGREEMENT IS TERMINATED FOR CONVENIENCE BY THE CITY, CONSULTANT SHALL BE PAID FOR ANY SERVICES SATISFACTORILY PERFORMED UP TO THE DATE OF TERM INATION; FOLLOWING WHICH THE CITY SHALL BE DISCHARGED FROM ANY AND ALL LIABILITIES, DUTIES, AND TERMS ARISING OUT OF, OR BY VIRTUE OF, THIS AGREEMENT. 5.3 TERMINATION FOR INSOLVENCY The City also reserves the right to terminate the Agreement in the event the Consultant is placed either in voluntary or involuntary bankruptcy or makes an assignment for the benefit of creditors. In such event, the right and obligations for the parties shall be the same as provided for in Section 5.2. s t SECTION 6 INDEMNIFICATION AND INSURANCE REQUIREMENTS 6.1 INDEMNIFICATION Consultant agrees to indemnify and hold harmless the City of Miami Beach and its officers, employees, agents, and contractors, from and against any and all actions (whether at law or in equity), claims, liabilities, losses, and expenses, including, but not limited to, attorneys' fees and costs, for personal, economic or bodily injury, wrongful death, loss of or damage to property, which may arise or be alleged to have arisen from the negligent acts, errors, omissions or other wrongful conduct of the Consultant, its officers, employees, agents, contractors, or any other person or entity acting under Consultant's control or supervision, in connection with, related to, or as a result of the Consultant's performance of the Services pursuant to this Agreement. To that extent, the Consultant shall pay all such claims and losses and shall pay all such costs and judgments which may issue from any lawsuit arising from such claims and losses, and shall pay all costs and attorneys' fees expended by the City in the defense of such claims and losses, including appeals. o The parties agree that one percent (1%) of the total compensation to Consultant for performance of the Services under this Agreement is the specific consideration from the City to the Consultant for the Consultant's indemnity agreement. The provisions of this Section 6.1 and of this indemnification shall survive termination or expiration of this Agreement. 6.2 INSURANCE REQUIREMENTS [NOTE: INSURANCE TYPES AND LIMITS BELOW SHOULD ALWAYS BE SAME AS WHAT WAS SPECIFICED IN BID DOCUMENTS] The Consultant shall maintain and carry in full force during the Term, the following insurance: 1. Consultant General Liability, in the amount of$1,000,000; 2. Consultant Professional Liability, in the amount of$200,000; and 3. Workers Compensation & Employers Liability, as required pursuant to Florida Statutes. The insurance must be furnished by insurance companies authorized to do business in the State of Florida. All insurance policies must be issued by companies rated no less than "B+" as to management and not less than "Class VI" as to strength by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent. All of Consultant's certificates shall contain endorsements providing that written notice shall be given to the City at least thirty (30) days prior to termination, cancellation or reduction in coverage in the policy. Original certificates of insurance must be submitted to the City's Risk Manager for approval (prior to any work and/or services commencing) and will be kept on file in the Office of the Risk Manager. The City shall have the right to obtain from the Consultant specimen copies of the insurance policies in the event that submitted certificates of insurance are inadequate to ascertain compliance with required coverage. The Consultant is also solely responsible for obtaining and submitting all insurance certificates for any sub-consultants. Compliance with the foregoing requirements shall not relieve the Consultant of the liabilities and obligations under this Section or under any other portion of this Agreement. I Ij The Consultant shall not commence any work and or services pursuant to this Agreement until all insurance required under this Section has been obtained and such insurance has been approved by the City's Risk Manager. SECTION 7 LITIGATION JURISDICTIONNENUE/JURY TRIAL WAIVER This Agreement shall be construed in accordance with the laws of the State of Florida. This Agreement shall be enforceable in Miami-Dade County, Florida, and if legal action is necessary by either party with respect to the enforcement of any or all of the terms or conditions herein, exclusive venue for the enforcement of same shall lie in Miami-Dade County, Florida. By entering into this Agreement, Consultant and the City expressly waive any rights either party may have to a trial by jury of any civil litigation related to or arising out of this Agreement. SECTION 8 LIMITATION OF CITY'S LIABILITY The City desires to enter into this Agreement only if in so doing the City can place a limit on the City's liability for any cause of action, for money damages due to an alleged breach by the City of this Agreement, so that its liability for any such breach never exceeds the sum of $10,000. Consultant hereby expresses its willingness to enter into this Agreement with Consultant's recovery from the City for any damage action for breach of contract to be limited to a maximum amount of$10,000. Accordingly, and notwithstanding any other term or condition of this Agreement, Consultant hereby agrees that the City shall not be liable to the Consultant for damages in an amount in excess of $10,000 for any action or claim for breach of contract arising out of the performance or non-performance of any obligations imposed upon the City by this Agreement. Nothing contained in this section or elsewhere in this Agreement is in any way intended to be a waiver of the limitation placed upon the City's liability, as set forth in Section 768.28, Florida Statutes. SECTION 9 [INTENTIONALLY DELETED] it {11' °i I ttI ` I SECTION 10 GENERAL PROVISIONS 10.1 AUDIT AND INSPECTIONS Upon reasonable verbal or written notice to Consultant, and at any time during normal business hours (i.e. 9AM — 5PM, Monday through Fridays, excluding nationally recognized holidays), and as often as the City Manager may, in his/her reasonable discretion and judgment, deem necessary, there shall be made available to the City Manager, and/or such representatives as the City Manager may deem to act on the City's behalf, to audit, examine, and/or inspect, any and all other documents and/or records relating to all matters covered by this Agreement. Consultant shall maintain any and all such records at its place of business at the address set forth in the "Notices"section of this Agreement. 10.2 [INTENTIONALLY DELETETD] 10.3 ASSIGNMENT, TRANSFER OR SUBCONSULTING Consultant shall not subcontract, assign, or transfer all or any portion of any work and/or service under this Agreement without the prior written consent of the City Manager, which consent, if given at all, shall be in the Manager's sole judgment and discretion. Neither this Agreement, nor any term or provision hereof, or right hereunder, shall be assignable unless as approved pursuant to this Section, and any attempt to make such assignment (unless approved) shall be void. 10.4 PUBLIC ENTITY CRIMES Prior to commencement of the Services, the Consultant shall file a State of Florida Form PUR 7068, Sworn Statement under Section 287.133(3)(a) Florida Statute on Public Entity Crimes with the City's Procurement Division. 10.5 EQUAL EMPLOYMENT OPPORTUNITY In connection with the performance of the Services, the Consultant shall not discriminate against any employee or applicant for employment because of race, color, national origin, religion, sex, gender identity, sexual orientation, disability, marital and familial status, or age. 10.6 CONFLICT OF INTEREST The Consultant herein agrees to adhere to and be governed by all applicable Miami-Dade County Conflict of Interest Ordinances and Ethics provisions, as set forth in the Miami-Dade County Code, and as may be amended from time to time; and by the City of Miami Beach Charter and Code (as some may be amended from time to time); both of which are incorporated by reference herein as if fully set forth herein. The Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirectly, which could conflict in any manner or degree with the performance of the Services. The Consultant further covenants that in the performance of this Agreement, no person having any such interest shall knowingly be employed by the Consultant. No member of or delegate to the Congress of the United States shall be admitted to any share or part of this Agreement or to any benefits arising there from. 10.7 TRAVEL No travel expenses will be allowable for the routine provision of resort tax or internal audits. In the event that the City assigns a project to a Consultant that requires travel, all travel in connection with this Agreement must be pre-approved by the City. All travel expenses will be reimbursed in accordance with the requirements of Section 112.061, Florida Statutes. SECTION 11 NOTICES All notices and communications in writing required or permitted hereunder, shall be delivered personally to the representatives of the Consultant and the City listed below or may be mailed by U.S. Certified Mail, return receipt requested, postage prepaid, or by a nationally recognized overnight delivery service. Until changed by notice in writing, all such notices and communications shall be addressed as follows: TO CONSULTANT: [FILL IN] TO CITY: [FILL IN] Notice may also be provided to any other address designated by the party to receive notice if such Y P Y 9 Y P Y alternate add.ress is provided via U.S. certified mail, return receipt requested, hand delivered, or by overnight delivery. In the event an alternate notice address is properly provided, notice shall be sent to such alternate address in addition to any other-address which notice would otherwise be sent, unless other delivery instruction as specifically provided for by the party entitled to notice. Notice shall be deemed given on the day on which personally served, or the day of receipt by either U.S. certified mail or overnight delivery. SECTION 12 MISCELLANEOUS PROVISIONS 12.1 CHANGES AND ADDITIONS This Agreement cannot be modified or amended without the express written consent of the parties. No modification, amendment, or alteration of the terms or conditions contained herein shall be effective unless contained in a written document executed with the same formality and of equal dignity herewith. 12.2 SEVERABILITY If any term or provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall not be affected and every other term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. , j I E 1 i I!I t { 12.3 ENTIRETY OF AGREEMENT The City and Consultant agree that this is the entire Agreement between the parties. This Agreement supersedes all prior negotiations, correspondence, conversations,. agreements or understandings applicable to the matters contained herein, and there are no commitments, agreements or understandings concerning the subject matter of this Agreement that are not ! contained in this document. Title and paragraph headings are for convenient reference and are not intended to confer any rights or obligations upon the parties to this Agreement. 12.4 CONSULTANT'S COMPLIANCE WITH FLORIDA PUBLIC RECORDS LAW Pursuant to Section 119.0701 of the Florida Statutes, if the Consultant meets the definition of "Contractor" as defined in Section 119.0701(1)(a), the Consultant shall: a) Keep and maintain public records that ordinarily and necessarily would be required by the public agency in order to perform the service; b) Provide the public with access to public records on the same terms and conditions that the public agency would provide the records and at a cost that does not exceed the cost provided in this chapter or as otherwise provided by law; c) Ensure that public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law; and d) Meet all requirements for retaining public records and transfer to the City, at no City cost, all public records created, received, maintained and/or directly related to the performance of this Agreement that are in possession of the Consultant upon termination of this Agreement. Upon termination of this Agreement, the Consultant shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. All records stored electronically must be provided to the City in a format that is compatible with the information technology systems of the City. For purposes of this Article, the term "public records" shall mean all documents, papers, letters, maps, books, tapes, photographs, films, sound recordings, data processing software, or other material, regardless of the physical form, characteristics, or means of transmission, made or received pursuant to law or ordinance or in connection with the transaction of official business of the City. Consultant's failure to comply with the public records disclosure requirement set forth in Section 119.0701 of the Florida Statutes shall be a breach of this Agreement. In the event the Consultant does not comply with the public records disclosure requirement set forth in Section 119.0701 of the Florida Statutes, the City may, at the City's sole discretion, avail itself of the remedies set forth under this Agreement and available at law. [REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK] ipr I � ii IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their appropriate officials, as of the date first entered above. FOR CITY: CITY OF MIAMI BEACH, FLORIDA ATTEST: By: City Clerk Mayor . FOR CONSULTANT: [INSERT NAME] ATTEST: By: Secretary President Print Name Print Name/Title 1 1 APPENDIX F A A A r. - al■ MITWOMilir ‘411 -)\ ••■•■■ ■••••••• Insurance Requirements 2015-043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DIVISION 1700 Convention Center Drive Miami Beach, Florida 33139 11 MIAMBE - CH PROFESSIONAL SERVICES The provider shall furnish to the Human Resources Department, Risk Management Division, City of Miami Beach, 1700 Convention Center Drive, 3rd Floor, Miami Beach, Florida 33139, Certificate(s) of Insurance which indicate that insurance coverage has been obtained which meets the requirements as outlined below: A. Worker's Compensation and Employer's Liability Insurance for all employees of the provider as required by Florida Statute 440. B. Commercial General Liability on a comprehensive basis in an amount not Less than $1,000,000 combined single limit per occurrence, for bodily injury and property damage. City of Miami Beach must be shown as an additional insured with respect to this coverage. C. Professional Liability Insurance in an amount not less than $1,000,000 with the deductible per claim, if any, not to exceed 10% of the limit of liability. The insurance coverage required above must include a waiver of subrogation in favor of the City. The insurance coverage required shall include those classifications, as listed in standard liability insurance manuals, which most nearly reflect the operations of the provider. All insurance policies required above shall be issued by companies authorized to do business under the laws of the State of Florida, with the following qualifications: The company must be rated no less than "B+" as to management, and no less than "Class VII" as to financial strength, by the latest edition of Best's Insurance Guide, published by A.M. Best Company, Oldwick, New Jersey, or its equivalent, subject to the approval of the City Risk Management Division. or The company must hold a valid Florida Certificate of Authority as shown in the latest "List of All Insurance Companies Authorized or Approved to Do Business in Florida" issued by the State of Florida Department of Y P Insurance and are members of the Florida Guaranty Fund. Certificates will indicate no modification or change in insurance shall be made without thirty (30) days advance notice to the certificate holder. CERTIFICATE HOLDER MUST READ: CITY OF MIAMI BEACH 1700 CONVENTION CENTER DRIVE 3rd FLOOR MIAMI BEACH, FL 33139 Compliance with the foregoing requirements shall not relieve the vendor of his liability and obligation under this section or under any other section of this agreement. } i 5 1 } 1 APPENDIX G -1 A. ;4,,,--.4; 1\A ;fir Ifri4 Sample Audit Programs for Resort ax 201 5-043-WG T RESORTTAXESAND AU DI S OF OTHER INTERNAL AUDITS AS NEEDED PROCUREMENT DIVISION 1700 Convention Center Drive { Miami. Beach, Florida 33139 Ha APPENDIX G SAMPLE AUDIT PROGRAMS FOR RESORT TAX AUDITS To Follow i � I i I i CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS PRELIMINARY WORK NOTIFICATION LETTER: PRE-AUDIT INTERVIEW: AUDIT INTERVIEW QUESTIONNAIRE FOOD &ALCOHOL OPERATIONS Business Name: Date: What are your business hours and days of operation? What is the seating/occupancy capacity? How many employees are there? Do you provide complimentary employee meals? Do you provide discounted employee meals? If yes, % of discount: How many cash registers/ POS Terminals are there? What system do you use? What internal daily records do you keep? Guest Checks Register Tapes POS Report(daily and monthly) Do you have promotional/complimentary ("house") charges: Yes( ) No ( ) If yes, approximately what% of total sales is this? Howdoes your system work? 1 • 2. 3. 4. • CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2)weeks prior to audit commencement date). DATE INTIALS 1 Tour premises with owner/contact noting layout. 2 Visually inspect the premises and: a. document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with the Resort Tax Section 4 Review what records are maintained to support Resort Tax Returns with owner/contact. 5 j Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS DATE DATE REQUESTED RECEIVED 1 SOURCE DOCUMENTS a. Restaurants & Bars i. Daily Sales Tickets ii. Cash Register Tapes iii. Daily POS Reports iv. Daily/Weekly Summaries v. Purchase Records/Invoices iiii. Other(Specify) 2 ACCOUNTING RECORDS a. Restaurants & Bars i. Sales Journal ii. Purchases Journal iii. General Ledger 3 GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Return c. Exemption Documentation d. Financial Statements e. Bank Statements I ' CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS GENERAL PROCEDURES ' f DATE INITIALS 1 Examine Federal Income Tax Returns/Income Statements. a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2 Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 3 Examine Income Statements a. Compare sales with totals reported on the Resort Tax Returns. b. Compute the cost of sales ratio and determine its reasonableness within industry standards. c. Prepare and see related schedule(s). CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS REVENUE PROCEDURES SALES: DATE INITIALS 1 Examine a sample of monthly sales from the Revenue Source Document. a. Trace sales to daily/weekly/monthly reports. b. Trace sales to State Sales Tax Returns. c. Prepare and see related schedules 2 Select a sample of guest checks/sales tickets and trace to the sales journal/revenue reports to verify propriety of the accounting records. (If possible obtain copy of guest checks for audit work papers). 3 If the business uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort tax returns. b. Prepare and see related schedules 4 Document work performed, including an explanation of any alternate/additional audit procedures performed, explanations of unreasonable variances and conclusions made as to reasonableness of reported sales. PURCHASES: DATE INITIALS 1 Calculate/review food and beverage costs for a I selected period and compare to industry/market averages. a. Prepare and see related schedules. .1 l; it I I CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS - RESTAURANTS AND BARS POST AUDIT PROCEDURES 1 DATE INITIALS 1 Discuss audit findings (if any)with owner/contact. 2 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 3 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 4 Final review of audit performed by Asst. Internal Auditor/ Internal Auditor. +yI it I f 1 i it li it CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM ' ANNUAL ACCOUNTS—APARTMENTS II. �it i i PRELIMINARY WORK NOTIFICATION LETTER: PRE-AUDIT INTERVIEW: AUDIT INTERVIEW QUESTIONNAIRE Business Name: Date: Total Available Rooms: How many floors? What kind of rentals do your exemptions represent? PRE-AUDIT INTERVIEW DATE I NTIALS 1 Tour premises noting layout 2 Visually inspect the premises for the following: a. Document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file. 4 Review what records are maintained to support Resort Tax Returns with owner/contact. 5 Review Audit Questionnaire with owner/contact. i I CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM ( s ANNUAL ACCOUNTS—APARTMENTS REQUEST FOR RECORDS DATE DATE REQUESTED RECEIVED 1 SOURCE DOCUMENTS a. Hotels, Apartment Houses, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Rent Rolls iv. Signed Lease v. Other(Specify) 2 ACCOUNTING RECORDS a. Hotels, Apartment Houses, Etc. i. Sales Journals ii. Transcript/Revenue Report iii General Ledger 3 GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d. Exemption Documentation e. Financial Statements f. Bank Statements GENERAL PROCEDURES DATE INITIALS 1 Examine the Exemptions taken and determine their I. validity. a. Prepare and see related schedule(s). 2 Examine Rental Income Records to determine taxable rentals if any. a. Trace to Resort Tax Return. b. Prepare and see related schedule(s). ll ii ' 4 II i 1 FI 11 1 CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM ANNUAL ACCOUNTS—APARTMENTS POST AUDIT PROCEDURES DATE INITIALS 1 Discuss audit findings (if any)with owner/contact. 2 Review late charge fees or other memos owed by taxpayer. 3 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 4 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 5 Final review of audit performed by Asst. Internal Auditor/Internal Auditor. • • ii it II ;i ii CITY OF MIAMI BEACH =a RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS— ROOMS ONLY it AUDIT INTERVIEW QUESTIONNAIRE ROOMS OPERATIONS Business Name: Date: Check-In Time: Check-Out Time: How many floors? Total available rooms: What is the name of the front desk software?: What kind of rentals do your exemptions represent? How does your system work? 1 2. 3. 4. 5. I ' 1i 1 CITY OF MIAMI BEACH !I RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS — ROOMS ONLY 11 PRE-AUDIT INTERVIEW • (NOTE: To be performed at least two (2)weeks prior to audit commencement date). DATE INTIALS `. 1 Tour premises with owner/contact noting layout 2 Visually inspect the premises and document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with Resort Tax Section. 4 Review what records are maintained to support Resort Tax Returns with owner/contact. 5 Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS DATE DATE REQUESTED RECEIVED 1 SOURCE DOCUMENTS a. Hotels, Rooms, Etc. i. Guest Cards/Folios ii. Receipt Register Night Audit report iiii. Other(Specify) 2 ACCOUNTING RECORDS a. Hotels, Rooms, Etc. i. Sales Journals ii. Transcript/Revenue Report iii. General Ledger 3 GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d. Exemption Documentation e. Financial Statements f. Bank Statements • I f CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS— HOTELS— ROOMS ONLY GENERAL PROCEDURES II DATE INITIALS 1 Examine Federal Income Tax Returns/Income Statements a. Compare sales with totals reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2 Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s) 3 Examine County Tax returns a. Compare sales with total reported on Resort Tax. Returns, Reconcile, if necessary. b. Prepare and see related schedules(s) 4 Examine Sales Tax Worksheets a. Compare sales with totals reported on the Resort Tax.Returns. b. Prepare and see related schedule(s). 5 Compare sales total from above return with the General Ledger totals. a. Prepare and see related schedule(s) REVENUE PROCEDURES SALES: DATE INITIALS 1 Examine Revenue Source Document(Rooms, etc) a: Trace sales to daily/weekly/monthly reports. b. Prepare and see related schedules. 2 Examine a sample of daily revenue reports. a. Trace to the month end reports. b. Compare to.the Monthly Income statement./Resort Tax Returns. c. Prepare and see related schedules. 3 Examine General Ledger(sales, purchases, and tax payable) a. Trace to Financial Statements/Resort Tax Returns. b. Prepare and see related schedules. 4 If the hotel uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort tax returns. b. Prepare and see related schedules. ii {k II CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS— HOTELS— ROOMS_ ONLY EI 5 Review selected exemptions documents for proper signature and propriety of exemption taken. 11 6 Document work performed, including an explanation of I any alternate/additional audit procedures performed, ;I explanations of unreasonable variances and 1,1 conclusions made as to reasonableness of reported sales. 1 POST AUDIT PROCEDURES DATE INITIALS 1 Discuss audit findings (if any)with owner/contact. 2 Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 3 Sign off on audit program, complete all documentation • and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 4 Final review of audit performed by Asst. Internal Auditor/ Internal Auditor.. • I , 3 i II ri CITY OF MIAMI BEACH ' RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS— HOTELS WITH FOOD AND BEVERAGE i AUDIT INTERVIEW QUESTIONNAIRE I FOOD &ALCOHOL OPERATIONS Business Name: Date: • What are the food and beverage outlets operated by the hotel? What are the food and beverage outlets NOT operated by the hotel? Note: these operators must be registered with Resort Tax; you must follow up. What are your business hours and days of operation? What is the seating/occupancy capacity? Do you provide complimentary employee meals? Do you provide discounted employee meals? If yes, % of discount How many cash registers/ POS Terminal are there? What system do you use? Are they interfaced with the hotel? What internal daily record do you keep? Guest Checks Register Tapes POS Report(daily/monthly) Do you have promotional/complimentary("house") charges: Yes ( )No( ) If yes, approximately what % of total sales is this? How does your system work? 1 2. 3. 4. lj it 1' i CITY OF MIAMI BEACH `! RESORT TAX AUDIT PROGRAM II MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE ii AUDIT INTERVIEW QUESTIONNAIRE !' ROOMS OPERATIONS Business Name: Date: ! it Check-In Time: Check-Out Time: How many floors? Total available rooms: What is the name of the front desk software?: What kind of rentals do your exemptions represent? How does your system work? 1 2. 3. 4. 5. i ! 1 � I i t 1 � I I Y I 6 i i 4 1 S If' y� 1 1 1 1l CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE PRE-AUDIT INTERVIEW (NOTE: To be performed at least two (2)weeks prior to audit commencement date). DATE INTIALS 1 Tour premises with owner/contact noting layout 2 Visually inspect the premises and document any revenue control procedures and equipment. 3 Determine the following with the owner/contact: a. Current ownership b. Current officers c. Above information agrees with information on file with Resort Tax Section. 4 Review what records are maintained to support Resort Tax Returns with owner/contact. 5 Review Audit Questionnaire with owner/contact. REQUEST FOR RECORDS DATE DATE • REQUESTED RECEIVED 1 SOURCE DOCUMENTS a. Hotels, Rooms, Etc. i. Guest Cards/Folios ii. Receipt Register iii. Night Audit report iiii. Other(Specify) 2 b. Restaurants & Bars i. Daily Sales Tickets ii. Cash Register Tapes iii. Daily/Weekly Summaries iv. Purchase Records/Invoices v. Other(Specify) E I CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS— HOTELS WITH FOOD AND BEVERAGE DATE DATE REQUESTED RECEIVED 2 ACCOUNTING RECORDS a. Hotels, Rooms, Etc. i. Sales Journals ii. Transcript/Revenue Report iii. General Ledger b. Restaurants & Bars i. Sales Journal ii. Purchases Journal iii. General Ledger 3 GENERAL ITEMS a. Federal Income Tax Returns b. State Sales Tax Returns c. County Tax Returns d. Exemption Documentation e. Financial Statements • f. Bank Statements GENERAL PROCEDURES DATE INITIALS 1 Examine Federal Income Tax Returns/Income Statements a. Compare sales with totals reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s). 2 Examine State Sales Tax Returns a. Compare sales with total reported on Resort Tax Returns. Reconcile, if necessary. b. Prepare and see related schedule(s) 3 Examine County Tax returns a. Compare sales with total reported on Resort Tax Returns, Reconcile, if necessary. b. Prepare and see related schedules(s) 4 Examine Sales Tax Worksheets a. Compare sales with totals reported on the Resort Tax Returns. b. Prepare and see related schedule(s). 5 Compare sales total from above return with the General Ledger totals. a. Prepare and see related schedule(s) CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS — HOTELS WITH FOOD AND BEVERAGE REVENUE PROCEDURES SALES: DATE INITIALS 1 Examine Revenue Source Document(Rooms, Food, Alcohol) a. Trace sales to daily/weekly/monthly reports. b. Prepare and see related schedules. 2 Examine a sample of daily revenue reports. a. Trace to the month end reports. b. Compare to the Monthly Income statement./Resort Tax Returns. c. Prepare and see related schedules. 3 Examine General Ledger(sales, purchases, and tax payable) a. Trace to Financial Statements/Resort Tax Returns. b. Prepare and see related schedules. 4 If the hotel uses bank statements for reporting purposes: a. Compare bank deposits statements to the resort tax returns. b. Prepare and see related schedules. 5 Review selected exemptions documents for proper • signature and propriety of exemption taken. 6 Document work performed, including an explanation of any alternate/additional audit procedures performed, explanations of unreasonable variances and conclusions made as to reasonableness of reported sales. PURCHASES: DATE INITIALS 1 Calculate/review food and beverage costs for a selected period and compare to industry/market averages. a. Prepare and see related schedules(s) • I ' i I CITY OF MIAMI BEACH RESORT TAX AUDIT PROGRAM MONTHLY ACCOUNTS— HOTELS WITH FOOD AND BEVERAGE POST AUDIT PROCEDURES DATE INITIALS 1 II Discuss audit findings (if any)with owner/contact. 2 I Prepare a short narrative, summarizing audit including level of cooperation of owner/contact and general overview. 3 Sign off on audit program, complete all documentation and schedules, and turn into Asst. Internal Auditor/ Internal Auditor for final review. 4 Final review of audit performed by Asst. Internal Auditor/ Internal Auditor. jj PROPOSAL 17 'ir IV it* �L • r "` ' L , w e _ @< �."i ✓ ,e.�..,w a.,t...-, .�_.. SQ1 •[01.1 lir --� 11: -x { H®W CELE8 TE! J The City of Miami Beach, Florida Response to Request I for Qualifications i To Provide AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS RFQ#2015-043-WG (Resort Tax Audits) Due: February 26, 2015; 3:PM 1 Submitted By: Ronald Thompkins,CPA,CGMA Office Managing Partner BCA Watson Rice LLP 520 NW 165'h Street Road Suite 205 Miami,Florida 33169 Tel.(305)947-1638 1 Fax(305)944-6225 Website:www.watsonrice.com E-mail:rthompkins'a'BCA%%atsonricc.com ' 111. r' atstriti ice • TITLE PAGE AUDIT SERVICES FOR RESORT TAXES RFQ TITLE AND OTHER INTERNAL AUDITS FIRM'S NAME BCA Watson Rice LLP BUSINESS ADDRESS 520 NW 165th Street Road, Suite 205 Miami, Florida 33169 TELEPHONE NUMBERS (305)947-1638(Office) (800)599-3103 (305)944-6225(Fax) E-MAIL ADDRESS rhompkins`I:BCAwatsonrice.coni. ENGAGEMENT PRINCIPAL Ronald Thompkins, CPA WEBSITE www.bca«atsonrice.com EMPLOYER I.D. NUMBER 26-1936394 DATE February 26,2015 Miami Beach, Florida TABLE OF CONTENTS TAB 1 1.1-Cover Page 1,2-Proposal Certification,Questionnaire.And Requirements Affidavit . . ...... .. ...... .... 1,3-Minimum Qualifications Requirements 4 TAB 2 2,1-Qualifications Of Proposer ... . ....... ....... ....._................. . .... 7 2.2-Qualifications Of Proposer Team 1 1 mr ® Watsoluflice® COVER LETTER February 26,2015 City of Miami Beach Florida Procurement Department 3"'Floor 1700 Convention Center Drive Miami Beach, Florida 33139 Attn: Selection Committee Dear Ladies and Gentlemen: We are pleased to present the qualifications of BCA Watson Rice LLP(referred to hereinafter as"BCA WR"or'BCA Watson Rice")to perform Audits of Resort Taxes audit services on an As Needed Basis pursuant to the Miami Beach's(the"City") Request For Qualifications(RFQ)RFQ#2015-043-WG. We previously provided Resort Tax audits for the City of Miami Beach and the Town of Surfside, and we were part of the team that helped institute the original resort tax audit program. Accordingly,we understand the work to be done as outlined in the RFQ. BCA Watson Rice stands ready to provide the City with strong capabilities in all areas relevant to Resort Tax Audits, and we have assembled a strong and highly qualified team. As a result of our forty (40) years of experience with governmental audits at the federal, state, and County levels,coupled with our "state-of-the-art"technical skills; we possess the necessary knowledge and understanding to conduct these audit in the most efficient and effective manner. We have earned a reputation for excellence by strictly adhering to the highest ethical standards of the profession for forty(40)years. _ This commitment to quality has helped position us among the nation's leading mid-sized accounting firms. We stand ready to provide you strong capabilities in all areas relevant to the audit. We have a combined staff of almost three-hundred (300) professionals dedicated to the governmental sector.We believe this strength is unsurpassed by any other proposer.We believe we are the best qualified firm to perform this engagement. With Florida offices in Miami, Fort Lauderdale, West Palm Beach and Tallahassee we are ready to serve you with enthusiasm and we welcome the opportunity to exceed your expectations! We declare we are able and willing to commit and maintain staffing, both number and level, to successfully conclude the audits in the time frame specified in this RFQ. Please feel free to contact me at(305)962-2721 (cell)or(305)947-1638(office)with any questions you may have. The undersigned has the authority to make representations for this firm. Very truly yours, BCA WATSON RICE LLP Ronald Thompkins, CPA,CGMA Partner BCA Watson Rice LLP Page 2 • Miami Beach, Florida 12-PROPOSAL CERTIFICATION, QUESTlONNAIR , AND REQUIREMENTS AFFIDAVIT ( Sclvaaon Igo Sok ittauan Tie 2015-043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED Procurement Coma T ei r Erna[ -- --- – — , Witham Garviso 305 673 7000 x 6650 j williamgarviso @miamibeachfl.gov PROPOSAL CERTIFICATION. QUESTIONNAIRE & REQUIREMENTS AFFIDAVIT Purpose: The purpose of this Proposal Certification, Questionnaire and Requirements Affidavit Form is to inform prospective Proposers of certain solicitation and contractual requirements, and to collect necessary information from Proposers in order that certain portions of responsiveness, rY p po � responsibility and other determining factors and compliance with requirements may be evaluated, This Proposal Certification,Questionnaire and Requirements Affidavit Form is a REQUIRED FORM that must be submitted fully completed and executed. General Proposer Information. PROPOSER NAME BCA Watson Rice LLP No of Years cn Susness ! No of Years in aus:riess Locany I Pto.of Employees 40 I 34 l 290 OTHER LAr.LISf PROPOSER HAS OPERATED UNDER IN THE LAST 10 YEARS Watson Ricer Watson,_Rice Hadnott,Thompldns&Cruz;TCBA Watson Rice LLP PROPOSER PRa.1ARY ADDRESS(HEADCUARTERSI• 5 Penn Plaza , 15th Floor CITY New York STATE - _ ZIP CODE New York 10001 TELEPHONE NO 212-447-7300 TOLL FREE NO 800-945-5970 FAX NO - 212-683-6031 FIRM LOCAL ADDRESS 520 NW 165th Street Road,Suite 205 CITY Miami sTATE Florida j ZIP CODE 33169-6303 PRIMARY ACCOUNT REPRESENTA;LVE FOR THIS ENGAGEMENT Ronald Thompkins,CPA,CGMA ACCOUNT REP TELEPHONE NO 305-947-1638,ext. 16 or 305-962-2721 (cell) ACCOUNT REP TOLL FREE NO i 800-599-3103 ACCOUNT PEP EMAIL rthompkins @bcawatsonrice.com FEDERAL TAX IDENTIFICATION NO 26-1936394 The City reserves the right to seek additional information from Proposer or other source(s). Including but not limited to. any firm or principal information, applicable ticensure resumes of relevant individuals client information, financial information, or any Information the City deems necessary to evaluate the capacity of the Proposer to perform in accordance with contract requirements 14 Veteran Owned Business.Is Proposer claiming a veteran owned business status? , YES I X I NO SUBMITTAL REQUIREMENT: Proposers claiming veteran owned business status shall submit a documentation proving that firm is certified as a veteran-owned business or a service-disabled veteran owned business by the State of Florida or United States federal government, as required pursuant to ordinance 2011-3748 Conflict Of Interest. All Proposers must disclose in their Proposal, the name(s)of any officer, director, agent,or immediate family member(spouse,parent sibling and child)who is also an employee of the City of Miami Beach Further, all Proposers must disclose the name of any City employee who owns, either directly or indirectly an interest of ten r 10%)percent or more in the Proposer entity or any of its affiliates SUBMITTAL REQUIREMENT: Proposers must disclose the names) of any officer, director, agent, or immediate family member(spouse parent. sibling, and child',who is also an employee of the City of Miami Beach Proposers must also disclose the name of any C.ty employee who owns either directly or indirectly, an interest of ten(10%)percent or more in the Proposer entity or any of its affiliates NONE 3 References & Past Performance. Proposer shall submit at least three (3) references for whom the Proposer has completed work similar in size and nature as the work referenced in solicitation SUBMITTAL REQUIREMENT: For each reference submitted. the following information is required: 1)Firm Name,2)Contact Individual Name&T:tle.31 Address 4)Telephone 5))Contact's Email and 6)Narrative on Scope of Services Provided (See attached) Litigation History.Proposer shall submit a statement of any litigation or regulatory action that has been filed against your firm(s) in the last five years If an action has been filed state and describe the litigation or regulatory action filed, and identify the court or agency before which the action was instituted,the applicable case or file number,and the status or disposition for such reported action If no litigation or regulatory action has been filed against your firm(s t,provide a statement to that effect. f'No'litigation or regulatory action has been filed against your firm(sl.please provide a statement to that effect Truthful and complete answers to this question may not necessarily disqualify a firm from consideration but will be a factor in the selection process. Untruthful, misleading or false answers to this question shall result in the disqualification of the firm for this project SUBMITTAL REQUIREMENT: Proposer shat submit history of lit'gation or regulatory action filed against proposer, or any proposer team member firm in the past 5 years. If Proposer has no litigation history or regulatory action in the past 5 years submit a statement accordingly. NONE Suspension,Debarment or Contract Cancellation,Has Proposer ever been debarred,suspended or other legal violation.or had a contract cancelled due to non- ormance by any public sector agency? L YES jNO SUBMITTAL REQUIREMENT: If answer to above is'YES.'Proposer shall submit a statement detailing the reasons that led to actions) f5 Vendor Campaign Contributions. Proposers are expected to be or become familiar with, the City s Campaign Finance Reform laws. as codified n Sections 2.487 through 2-490 of the City Code. Proposers shad be solely responsible for ensuring that all applicable provisions of the City's Campaign Finance Reform 'aws are complied with, and sham be subject to any and all sanctions as prescribed therein including disqualification of their Proposals.in the event of such non-compliance SUBMITTAL REQUIREMENT: Submit the names of all Individuals or entities (including your sub- . consultants)with a controlling financial interest as defined in solicitation. For each individual or entity with a controlling financial interest indicate whether or not each individual or entity has contributed to the campaign either directly or indirectly,of a candidate who has been elected to the office of Mayor or City Commissioner for the City of Miami Beach NONE 7 Code of Business Ethics.Pursuant to City Resolution No 2000-23879,each person or entity that seeks to do business with the City shall adopt a Code of Business Ethics ('Code') and submit that Code to the Procurement Division with its ro satires once or within five 5 days upon receipt of request The Code t p l� P ( , Y Po p °q shall.at a minimum require the Proposer to comply with all applicable governmental rules and regulations including.among others.the conflict of interest.lobbying and ethics provision of the City of Miami Beach and Miami Dade County SUBMITTAL REQUIREMENT: Proposer shall submit firm s Code of Business Ethics In lieu of s ibmitting Code of Business Ethics Proposer may submit a statement indicating that it will adopt as required in the ordnance,the City of Miami Beach Code of Ethics avertable at www miamibeachfl.govlprocurementl, (See attached) 8 NWi1(,� ' .-• - --. !. •: _ • - • -.- •• - . . . . tirK ;o • • .r_ •- • _.. -. ': .. - •- :. . ••• • • •_ • _ stied-below=• • The C+t ' -- .- - _ • .: $44,2 ou rly-w6 r • .:. ••:- ! • . _. : , - .. . . _ •.. tai • .. - -- - - -• _• . - - Japee y-4--2$+5. . .. . .• .. • .. :: .':-ma . . - . . - •- - -- •• . -• -xed annual! •,- • . '.- -•• ••- • • '_ s•• -.• • • Gt-U Miami --a f la•• -: _ . - --.. ;. _.. . _._ '-_ - • - - _ - _ Qi}---he3y-alsaTty-re-selu ` i1- iould--tnot-be•isea11 particu * ' i. �. •,. •- ._I - ., SUBMITTAL REQUIREMENT: No additional submittal is required By virtue of executing this affrday.t document.Proposer agrees to the living wage requirement lei 9_ Equal Benefits for Employees with Spouses and Employees with Domestic Partners.When awarding competitively solicited contracts valued at over 5100,000 whose contractors maintain 51 or more full time employees on their payrolls during 20 or more calendar work weeks. the Equal Benefits for Domestic Partners Ordinance 2005-3494 requires certain contractors doing business with the City of Miami Beach, who are awarded a contract pursuant to competitive proposals. to provide 'Equal Benefits- to their employees with domestic partners,as they provide to employees with spouses The Ordinance applies to all employees of a Contractor who work within the City limits of the City of Miami Beach, Florida. and the Contractor's employees located in the United Stales.but outside of the City of Miami Beach limits. who are directly performing work on the contract within the City of Miami Beach A Does your company provide or offer access to any benefits to employees with spouses or to spouses of employees') YES NO B Does your company provide or offer access to any benefits to employees with (same or opposite sex) domestic partners'or to domestic partners of em oyees? I X l YES I NO 17 C Please check all benefits that apply to your answers above and list in the 'other section any addtional benefits not already specified Note some benefits are provided to employees because they have a spouse or domestic partner such as bereavement leave other benefits are provided direct.y to the spouse or domestic partner such as medical insurance BENEFIT Firm Provides for Firm Provides for ) Firm does not Employees with f Employees with Provide Benefit Spouses Domestic Partners Health I I x I Sick Leave x Family Medical Leave I } x Bereavement Leave _.— � x i If Proposer cannot offer a benefit to domestic partners because of reasons outside your control (e g_there are no insurance providers in your area willing to offer domestic partner coverage)you may be eligible for Reasonable Measures compliance To comply on this basis. you must agree to pay a cash equivalent and submit a completed Reasonable Measures Application (attached) with all necessary documentation Your Reasonable Measures Application will be reviewed for consideration by the City Manager. or his designee. Approval is not guaranteed and the City Manager's decision is final Further Information on the Equaa Benefits requirement is available at www miamibeachfl goviprocuremenU (See attached) 10 Public Entity Crimes. Section 287133(21)(a), Fonda Statutes as currently enacted or as amended from time to time, states that a person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a proposal.proposal.or reply on a contract to provide any goods or services to a public entity may not submit a proposal,proposal.or reply on a contract with a public entity for the construction or repair of a public building or public work may not submit proposals. proposals, or replies on leases of real property to a public entity,may not be awarded Of perform work as a contractor supplier subcontractor or consultant under a contract with any public entity. and may not transact business with any public entity in excess of the threshold amount provided in s. 2E7.017 for CATEGORY TWO for a period of 36 months following the date of being placed on the convicted vendor list SUBMITTAL REQUIREMENT: No additional submittal is required By virtue of executing this affdavit document. Proposer agrees with the requirements of Section 287 133. Florida Statutes and certifies.it has not been placed on convicted vendor!1st. 11 Acknowledgement of Addendum. After issuance of solicitation. the City may release one or more addendum to the solicitation which may provide additional information to Proposers or alter solic.tation requirements. The City will strive to reach every Proposer having received solicitation through the City s e• procurement system. PublicPurchase.com. However. Proposers are solely responsible for assuring they have received any and all addendum issued pursuant to solicitation- This Acknowledgement of Addendum section certifies that the Proposer has received all addendum released by the City pursuant to this solicitation_ Failure to obtain and acknowledge receipt of all addendum may result 'n proposal disqualification ;n;teal C*ern Mal c�3afrm inrj31 M Cant Recetat ' Remit • Retep! Addendum 1 • Addendum 6 --- Addendum 11 r : Addendum 2 � Addendum 7 � : Addendum 12 Addendum 3 j Addendum 8 i I Addendum 13 -' Addendum ! Addendum 9 _ r Addendum 14 Addendum 5 1^ _ Addendum 10 : , Addendum 15 If additional confirmation of addendum is required.submit under separate cover 3 8 �o .r OISCCOSUREAND"DISCLAlMERSECTiON_ The solicitation referenced herein is being furnished to the recipient by the City of Miami Beach (the'City') for the recipient's convenience Any action taken by the City in response to Proposals made pursuant to this solicitation or in making any award or in failing or refusing to make any award pursuant to such Proposals.or in cancelling awards,or in withdrawing of cancelling this solicitation either before or after issuance of an award snat be without any liability or obligation on the part of the City In its sole discretion, the City may withdraw the solicitation either before or atter receiving proposals. may accept or reject proposals and may accept proposals which deviate from the solicitation,as it deems appropriate and in its best interest In its sole discretion the City may determine the qualifications and acceptability of any party or parties submitting Proposals in response to this solicitation Following submission of a Bid or Proposal, the applicant agrees to deliver such further detail. information and assurances including financial and disclosure data relating to the Proposal and the appicant including. without limitation. the applicant s affiliates,officers.directors.shareholders,partners and employees. as requested by the City in its discretion The information contained herein is provided solely for the convenience of prospective Proposers, It is the responsibility of the reopient to assure itself that'nformation contained herein is accurate and complete. The City does not provide any assurances as to the accuracy of any information•n this solicitation Any reliance on these contents or on any permitted communications with C:ty officials,shalt be at the recipient's own risk Proposers should rely exclusively on their own investigations interpretavons and analyses. The solicitation is being provided by the City without any warranly.or representation express or implied,as to its content.its accuracy.or its completeness No warranty or representation is made by the City or its agents that any Proposal conforming to these requirements will be selected for consideration_negotraton or approve' The City shall have no obligation or 'lability with respect to ih.s solicitation, the selection and the award process.or whether any award will be made Any recipient of this solicitation who responds hereto Billy acknowledges all the provisions of this Disclosure and Disclaimer is totally relying on this Disclosure and Disclaimer and agrees to be bound by the terms hereof Any Proposals submitted to the City pursuant to this solicitation are submitted at the sole risk and responsibility of the party submitting such Proposal This solicitation is made subject to correction of errors omissions or withdrawal from the market without notice information is for guidance only,and does not constitute all or any part of an agreement The City and all Proposers will be bound only as.if and when a Proposal(or Proposals). as same may be modified, and the applicable definitive agreements pertaining thereto. are approved and executed by the parties. and then only pursuant to the terms of the definitive agreements executed among the parties.Any response to this solicitation may be accepted or rejected by the City for any reason,or for no reason without any resultant liability to the City The City is governed by the Government-in-the-Sunshine Law and all Proposals and supporting documents shall be subject to disclosure as required by such law All Proposals shall be submitted in sealed proposal form and shay remain confidential to the extent permitted by Florida Statutes until the date and time selected for opening the responses.Al that time,all documents received by the City shall become public records. Proposers are expected to make all disclosures and declarations as requested'n this solicitation By submission of a Proposal, the Proposer acknowledges and agrees that the City has the nght to make any inquiry or investigation it deems appropriate to substantiate or supplement information contained in the Proposal,and authorizes the release to the City of any and all information sought in such inquiry or investigation Each Proposer certifies that the information contained in the Proposal is true,accurate and complete.to the best of its knowledge,information and belief Notwithstanding the foregoing or anything contained in the solicitation, all Proposers agree that in the event of a final unappealable judgment by a court of competent jurisdiction which imposes on the City any liability arising out of this solicitation,or any response thereto,or any action or inaction by the City with respect thereto, such liability shat;be limited to $10,000.00 as agreed-upon and liquidated damages The previous sentence. however. shall not be construed to circumvent any of the other provisions of this Disclosure and Disclaimer which imposes no liability on the City. 19 In the event of any differences in language between this Disclosure and Disclaimer and the balance of the solicitation It is understood that the provisions of this Disclosure and Disclaimer shall always govern The solicitation and any disputes arising from the solicitation shall be governed by and construed in accordance with the laws of the State of Florida 0 R7 OSER RTIFICATION 3.[l'y3 'r' .-is�5,4... >,e j,_ - .. -.. _� ..-� _ � _ -.....—. .. ,' ._ ___• _- .. _ � _..tea hereby certify that: 1, as an authorized agent of the Proposer, am submitting the following information as my firm's. proposal: Proposer agrees to complete and unconditional acceptance of the terms and conditions of this document. '► inclusive of this solicitation, all attachments, exhibits and appendices and the contents of any Addenda released hereto. and the Disclosure and Dscfaimer Statement; Proposer agrees to be bound to any and all specifications. terms and conditions contained in the solicitation, and any released Addenda and understand that the following are requirements of this solicitation and failure to compy will result in disqualification of proposal submitted; Proposer has not divulged. discussed,or compared the proposal with other Proposers and has not colluded with any other Proposer or party to any other proposal; Proposer acknowledges that all information contained herein is part of the public domain as defined by the State of Florida Sunshine and Public Records taws; all responses, data and information contained in this proposal. inclusive of the Pro's sal Certification,Questionnaire and Requirements Affidavit are true and accurate. Name of Proposer's Authorized?epresenarve i ECe of Proposer s Authorized Pe2:esentaU,ive Ronald Thompkins Partner agnature of?rrocser s Authorized Rt.,prenratrie Cate February 23,2015 a. State of FLOCtri ) On this di-7 day of rtgliazoiLy 20/5persorar'y . appeared before me AckJb T[ .A4Pk'•vnto County of 11 rtnt; stated that (s)i is the of J1 4.474-43 a corporation, and that the instrument was signed in behalf of the said corporation by authority of its board of directors and acknowledged said instrument to be its voluntary act and deed. Before me: Notary Public for the State of r<: el My Commission Expres tt/r C Notary Public State of Florida Carol P Edwards y My Commission EE 216584 j Expires(191111/2018 2l City of Miami Beach, Florida RFQ#2015-043-WG. PROPOSAL CERTIFICATION,QUESTIONNAIRE AND REQUIREMENTS AFFADAVIT Q.7-We certify if awarded this contract we would adopt the City's Code of Ethics Q.3-See Page 33. Miami Beach, Florida 1.3-Minimum Qualifications Requirements BCA Watson Rice LLP Page 4 Miami Beach, Florida waw.aaat tog-Department of State Page 1 of 2 r!(`a'_t).1 Ul:t':.itTA1LNT 'JF STA'.'E F 1 :RPLR.1T1:►\S Home Gaud t!a Emig Ierrme s ocum ment sa mee Forme nem 1 Efignlisiga NoAtoritr Info No Partner InforrY Partnership Detail Name search Limited Liability Partnership Name I Stn!ra SCA WATSON RICE UP Principal Address 520 NW 105TH STREET ROAD.SURE 205 LIMIL R.33100 Change Date:012=13 Filing Information Document Number LLP080000t67 FEVEDI Number 201034304 Fge Date 01RIr2008 State To Pages 0 Pages in Original Fang 1 Florida Partners NONE To Partners 1 Stabs ACTIVE elective Date NONE Expiration Date NONE Name*story 0001 Mailing Address SCA WATSON RICE LLP P,O BOX 003725 WAIA.R 332003775 Change Donor.0325/013 Registered Agent THOWKINS RONALD 500 NW 105 STREET RD STE 205 WAIL R 33100 Document Images titter M:J.1E View image m PDF fund I i^g i t.,7 4 t P Atin ri Retire ' View mope in POF karat I ,10/211/2013-U.P Status Revstxld ; View enage in PDF tons I L P13000Im3-No wage avvSabie 5;2 t 3- View image in PDF format ht p/!simbhz.ore/scriavtslemdet.eze?sctrDETG tsp:web f.20&anap:._. 1115/2015 SCA Watson Rict;LLP Page 5 Miami Beach, Florida DBPR-BCA WATSON RICE LLP,FIRM Page 1 of 1 rrss4JLUtn6=16 Licensee Details Licensee Information Name: BCA WATSON RICE LIP(Printery Name) (QA ) Main Address: PO BOX 693725 MIAMI Florida 33269 County: DADE License Mailing: Licenselocation: 520 NW 165T11 STREET ROAD Stilt:205 MIAMI FL 33169 County: BROWARD License Information License Type: FIRM Rank: CPA Arms License Number: AD0003182 Status: Current • Uceue Date: 04/09/1982 Expires:. 12/31/2015 Special Qualifications Qualification Effective Partnership 04/29/2013 Viz {atl.Listar lr f m diun ViraxlicenuSsunataint Ir.na.A ssaxa.tly�i.a Y�rneheaweai 0 Emest GismanAtisanAmatu cust'mr1Q contact ci.ser 89Q U93 1pr Sum at wamsoa E as AVM otodotpoo jw++.w*,2407-?0rel IR.,. wwr+." Under WOO ra.,raid aeta::vs are gift retard.tr p W tai WWz sarit rout araaA Adams'Weaaaa l t reapataa to a plc rase& aqme&m net told dedsatic anal C 1143 rat► tssatisa,mrrsa Os circa try Mane o of vatRlons alas IV you haw sr" P please corm tSO 447 134:.•Nrsr.ate m Seaton AS 3I7'Si t).Rama gamma.r'Jtn714 Oeoer 4 2%:I.ucane.aa esansaa under t]ap ar 4SS.FS.az=Pt>s'aa Qr Oapartar'r3 arcs an oral aoosa if Woo new arta inn ataata prv4c7re tip co sraB As dales coaeaaslaaa+seas tie 9ratsaa.Noowo Inuit aaarssoaa era;LSO(mod U pat do not wen to sash a pwustat asuress.,mow pr®rtaa 9+e Ortiwtrra rt 0=1 as Warm Main WW1 OR to Curie/N Aatrr to Ca dasot ROAM ran coo lazeac An pips co emarosi n tl rw ors afrasaa Or Om champ. hzips:ihraw.nnllori ce se ase?SIID=ac:ay*FFF44DCAE92B2D... 1/152415 BCA Watson Rice LLP Page 6 • Miami Beach, Florida 2.1-QUALIFICATIONS OF PROPOSER BCA Watson Rice LLP Page 7 Miami Beach, Florida Profile of the Firm • BCA Watson Rice's approximately three hundred(300)partners and staff members have served clients throughout the U.S. and in several foreign countries. Offices are located in Miami, Ft. Lauderdale, West Palm Beach, and Tallahassee, Florida;Washington, D.C.;Torrence, California; Rutherford,New Jersey;and New York, New York. BCA Watson Rice's Florida office is a registered limited liability partnership in the State of Florida, Combined Revenues of this partnership have been in excess of$6 million for each of the last two(2)years. BCA Watson Rice's Florida office is registered with the State of Florida,Department of Business and Professional Regulation, Board of Accountancy under license no.AD0003182. QUALIFICATIONS OF BCA WATSON RICE LLP UNSURPASSED REPUTATION BCA WR has been a member of the Private Companies Practice Section of the AICPA since the inception of the program and is internationally recognized for its work in the governmental sector.We are also members of the AICPA's newly formed Governmental Audit Quality Center and Employee Benefit Quality Audit Center (The Centers). The Centers' primary purpose is to promote the importance of quality governmental and employee benefit plan audits, and the value of such audits to purchasers of governmental and employee benefit plan audit services. The Centers will also offer resources to enhance the quality of a firm's governmental and employee benefit audits. Recognition of the Firm's reputation in the government sector was probably best evident when the Florida predecessor firm was chosen by the State of Florida Department of Commerce to share its knowledge of the governmental audit process with a delegation of statutory auditors from Japan. Knowledgeable and experienced in federal,state and local government,BCA WR provides a full range of services, including auditing,accounting,business assurance and management consulting. Technical Competence BCA WR is one of the most respected firms in the fields of government auditing. We achieved this degree of prominence by giving our clients quality work at a reasonable price. Our personnel are at the cutting-edge of the profession by complying with the profession's CPE requirements including those additional requirements for governmental audits. In addition, BCA WR personnel are also active in the profession,being members of different policy-making committees at the Al CPA and our state professional societies. We certify that BCA WR's Florida offices are in total compliance with the Board of Accountancy's requirements for each licensee, including maintaining Continuing Professional Education (CPE) in governmental accounting as required by the Board of Accountancy and US Government Accountability Office("GAO"). Quality is the keyword of BCA WR's operations. The firm's commitment to quality begins with its skilled and dedicated staff of people who put its ideals into practice. In addition, the national managing partner Bennie L. Hadnott, CPA, supervises the fi rm's Quality Control program, assuring the high performance that clients have come to expect of BCA WR. The firm is also a member of the American Institute of Certified Public Accountant's Division for CPA Firms and participates in the firm-on-firm Peer Review process, led by Engagement Partner, Ronald Thompkins, a veteran of numerous reviews. BCA Watson Rice LLP • Page 8 Miami Beach, Florida Profile of the Firm (Continued) BCA Watson Rice Locations West Palm Beach,Florida Miami,Florida* Fort Lauderdale,Florida 777 S.Flagler Dr. 520 NW 165th Street Road 110 East Broward Blvd. (561)515-6055 (305)947-1638 (954)315-3863 New York New York Rutherford,New Jersey Tallahassee,Florida 5 Penn Plaza 301 Route 17 North 113 S.Monroe Street (212)447-7300 (201)460-4590 (850)201-7211 Other Locations Washington D.0 Torrance,CA Bowie, MD 2200 Pennsylvania Ave. 21250 Hawthorne Blvd. Hartford,CT Tel: (202)416-1749 Suite 520 Atlanta,GA (310)792-7001 Philadelphia, PA (*)Location from which the engagement will be performed LIAISON WITH OR ACCESS TO GOVERNMENT AGENCIES With offices in Tallahassee and Washington, DC our firm is uniquely positioned to use our existing relationships to leverage access to state as well as federal government agencies on the City's behalf. It should also be noted our partners have leadership roles in our state societies, the AICPA and have served on various federal, state, and local agencies. Independence We are independent of the City as defined by generally accepted auditing standards/the U.S.General Accounting Office's Government Auditing Standards(1994 as amended in 2007). Our Firm has no personal interest, direct or indirect, in the fiscal affairs of the City government and/or any of its officers. In addition,we shall give the City written notice of any professional relationships entered into during the period of this agreement. License to Practice in Florida and Continuous Service The Firm is licensed to do business in the state of Florida as a limited liability partnership, as a certified public accountancy firm under the license number AD00003182,and has requisite business occupational licenses. Certificate of Good Standing The Firm and/or its predecessors have operated in the state of Florida since August 1, 1980.All licensed certified public accountants based in Florida are in compliance with the Florida Board of Accountancy license requirements. BCA Watson Rice LLP Page 9 Miami Beach, Florida See a copy of Firm's license is included herein. Firm membership in the American institute of Certified Public Accountants We are a member firm of the American Institute of Certified Public Accountants Governmental Quality Audit Center, Employee Benefit Quality Audit Center, and the Division for CPA Firms, Private Companies Practice Section ("PCPS"). Members of the PCPS agree, among other things,to: • Submit to peer reviews by CPA's from member firms every three (3) years, the reports are made available to the public,and ensure that each professional staff member participates in at least 80 hours of continuing education every two (2) years (including at least 24 hours bi-annually in the area of governmental accounting and auditing). We are proud of our recent"clean opinion", which is our sixth tri-annual report. Furthermore, all CPA's practicing in our firm are members of the AICPA(for Florida CPA's), and are independent with respect to the City of Miami Beach. Professional Staff SIZE OF FIRM AND GOVERNMENTAL AUDIT STAFF STAFF LEVEL AVAILABLE TO THIS TOTAL PERSONNEL CPA'S ENGAGEMENT" Partners/Principals 2 9 9 Managers/Directors 2 _ 17 17 Supervisors - 11 6 Senior Associates/in-charge 2 111 78 Staff 3 94 61 Consultants 1 30 - Administrative 2 18 TOTALS 12 290 171 (')ALL PERSONNEL ARE EXCLUSIVELY DEVOTED TO THE AUDITS OF GOVERNMENTAL ENTITIES AND NON-PROFIT ORGANIZATIONS AND ALL ARE FULL TIME_ LOCATION OF OFFICE WHICH WILL PERFORM THE WORK The office from which all services will be rendered will be our Miami office: 520 NW 165''Street Road,Suite 205, Miami, Florida 33169-6303. Quality Control Review Firm's Participation In AICPA-Sponsored Or Comparable Quality Control Programs Our firm has been a member firm since inception of the AICPA's Private Companies Practice section ("PCPS") and is an inaugural member of its Governmental and Employee Benefit Quality Control Centers. Members of these prestigious divisions have pledged a commitment to quality service including AICPA-sponsored peer reviews as well as Continuing Professional Education and training specific to our clientele. We have just recently completed our 2013 peer review. See copy in the appendices. BCA Watson Rice LLP Page 10 Miami Be Florida ^ ' OF 2.2-QUALIFICATIONS, - PROPOSER TEAM BCA��so��o�LLP ._' Page 11 Miami Beach, Florida ORGANIZATION CHART BCA Watson Rice LLP Page 12 Miami Beach, Florida Ronald Thom kins 1 (Engagement „. .:„,. .. :. Partner) ,„ Al Lucas (Concurring p Review Partner) , , 4 ,, ; .: . Carshena Allison (Manager) 1 1 . 1 1 Thomas Williams I ,, , Rhea Rivera. . ,, III , , . „ . .. , , ...- -(Sr. Associate) , . . , , ,i. (Sr. Associate) . ',• -. 1 .. , .. _ . . .,... 4 BCA Watson Rice LLP Page 13 Miami Beach, Florida Qualifications and Experience of Ke Personnel Our structure recognizes two essential requirements for effective performance-the need for clear accountability, and the need for a single primary point of contact between us as Auditors and the City. To accomplish these objectives we provide for the following level of engagement management. Engagement Partner The Engagement Partner has overall responsibility for administration of The City's contract. He will monitor day-to-day project activities and work directly with the Engagement Manager to assure work quality,and cost and schedule adherence.Participate in all meetings with the City's financial management; Commission members. Review all reports to be issued to ensure compliance with professional standards. He also will be the primary contact person. Engagement Manager The Engagement Manager will be responsible for the day-to-day performance of engagement team members. This includes responsibility for assuring the technical quality of the work performed, adhering to the finalized budget and schedule, and producing a quality report. Senior Associate The Senior Associate will conduct proposed engagement tasks. The Senior will lead all major tasks and have direct responsibility for staff auditor(s). The qualifications of the key personnel assigned to the engagement and their responsibilities to serve The City are summarized in the pages following. BCA Watson Rice LLP Page 14 Miami Beach, Florida Principal Supervisory & Management Staff Continuing Professional Education Required Under Government Auditing Standards We offer specialized training (through in-house and as well as outside providers) in industry-specific areas including Government Auditing Standard. In addition,every BCA WR staff member is monitored to ensure that he or she completes the continuing education requirements of the American Institute of Certified Public Accountants("AICPA"),as well as those required by the "Yellow Book",and individual boards of accountancies in the states in which we practice. AFFIRMATION THAT THE AUDITOR IN CHARGE MEETS THE EDUCATION REQUIREMENTS OF CHAPTER 11.45 OF THE FLORIDA STATE STATUTES. We certified that Ronald Thompkins,the proposed auditor in charge,has met the education requirements of Florida Statutes, Chapter 11.45. GOVERNMENT AUDITING EXPERIENCE OF EACH PERSON ASSIGNED AND HOW QUALITY OF STAFF WILL BE ASSURED In each of the resumes listed below, we have included their relevant government auditing experience. From a combined firm-wide pool of almost 300 professionals,the Firm has the ability and is willing to commit and maintain staffing, both number and level, to successfully conclude the audits within the time constraints outlined in the Request for Proposals. The Firm is also willing to commit to the availability of assigned partners and manager to meet with management on any material matters that could affect the financial position or results of operations. TOTAL STAFF AVAILABLE AND TOTAL ANTICIPATED PERCENT OF AUDIT WORK TO BE PERFORMED BY VARIOUS LEVELS OF STAFF BCA Watson Rice LLP Page 15 Miami Beach, Florida Principal Superviso & Management Staff We have selected and will commit the following key partner(s), manager and senior auditor to lead the engagement Ronald Thompkins, CPA CGMA, the Engagement Partner and Primary Contact. has substantial experience in "hands-on" management of governmental ,, engagements. His single audit and federal grant experience relevant to this RFP -'�'€ include Miami-Dade County, Department of Parks, Recreation and Outdoors Spaces e" (The Children's Trust grant audits); Alliance for GLTBQ Youth (The Children's Trust grant audits); City of Lake Worth, Florida ; City of Quincy, Florida; City of Gretna, Florida; City of Pembroke Pines, City of Oakland Park, Florida;City of Wilton Manors, Florida; City of Opa-Locka, Florida; City of Lauderhill, Florida; City of Riviera Beach, /° Florida(City, CRA,and Utility Special District);South Florida Regional Transportation Authority; Miami-Dade Expressway Authority; Miami-Dade Housing Agency; Broward County Housing Authority, and South Florida Regional Planning Council. Ron's experience in auditing Workforce Investment Act or welfare reform systems include Opportunities and Industrialization Center of Miami- Dade County (OIC), The Children's Trust (in a joint venture capacity), Early Learning Coalition of Broward County, Comprehensive Employment&Training Act("CETA") Programs operated by the state of Florida's Department of Labor (in a joint venture) and South Florida Employment & Training Consortium (including the former CETA programs). Ron also has extensive public finance experience. Because of his extensive credentials in the government sector he is frequently called upon as a team captain in connection with peer reviews of other CPA firms. Ron is a former member of the Board of Directors of the American Institute of Certified Public Accountants(AICPA)and a past state president of the Florida Institute of Certified Public Accountants(FICPA). ALBERT J.LUCAS,CPA, MBA,CIA,CISA,the concurring review partner,has more than 25 years of audit and business consulting experience. Mr. Lucas has 10 years of Big 4 accounting firm experience, and now manages a portfolio of • y nonprofit and federal, state and local government entities. Services provided to "` these clients include financial and compliance audits performed in accordance ,, .;-' / , ' with Government Auditing Standards and other special reviews and services. Charlton Sampson, PMP, CISA, CISM, CIS, will serve as our IT audit specialists. Charlton brings a solid twenty (20) year (15 with BCA) background in the audit of IT systems for governmental entities of all sizes. Florida clients Charlton has provided IT support services to include South --41 Florida Regional Transit Authority, Broward County Housing Authority, f f South Florida Workforce Investment Board, City of Quincy, Florida, City of Lake Worth, Florida, City of Oakland Park, Florida, Miami-Dade Transit Authority, and Miami-Dade Transit Authority. BCA Watson Rice LLP Page 16 Miami Beach, Florida d .. - Carshena T. Allison, CPA, MBA will be the engagement manager. Carshena has seven(7)years auditing experience(including three years with a Big Four Firm). Carshena's governmental experience includes . Miami-Dade County, Department of Parks, Recreation and Outdoors `r . Spaces (The Children's Trust grant audits); the City of Lake Worth, `•" Florida; City of Quincy, Florida; the City of Lake Worth, Florida; t: ` ~' Tallahassee- Leon County Civic Center Authority; City of Miami r toe¢Q. Downtown Development Authority; Miami-Dade Expressway Authority; Federal National Mortgage Association (while with another firm); South ` - Florida Water Management District (joint venture); Miami-Dade County Department of Solid Waste (functioned as engagement senior)(joint venture) and City of Hollywood (joint venture). She has forensic and performance audit experience as follows: Forensic audit of the Utility District of the City of Riviera Beach, Florida (Utility Special District). Carshena serves on the Executive Board of the local chapter of the Florida Institute of Certified Public Accountants, and heads our IDEA implementation project for the Florida practice group. Rhea Rivera will serve as Senior Associate. She has over twenty (20) years(over six(6)years with BCA Watson Rice)years of accounting and 4. auditing experience and has served several governmental clients similar '`' to the City. She has served on the following engagements: Miami-Dade a County, Department of Parks, Recreation and Outdoors Spaces (The Children's Trust grant audits);Alliance for GLTBQ Youth (The Children's Trust grant audits) City of Pembroke Pines, Florida; City of Lake Worth, ` Florida(Utility Special District);City of Quincy, Florida;City of Lake Worth, Florida; City of Oakland Park, Florida; City of Wilton Manors, Florida; and South Florida Regional Transit Authority.She has forensic and performance audit experience as follows: Forensic audit of the Building Department of the City of Miami Beach, Florida; Forensic audit of the Utility District of the City of Lake Worth, Florida; Forensic audit of the Customer Services Department for the City of Wilton Manors;and Forensic Audit of the Court House Center Parking Garage for Miami Parking Authority. She is familiar with the auditing standards of the American Institute of Certified Public Accountants generally accepted in the United States and Government Auditing Standards. Rhea is a firm specialist in audits under the Single Audit Act. j - - - Thomas H. Williams Ill will be assigned as an Associate. He has five(5) years' a experience (all with BCA Watson Rice) and is intimately knowledgeable of non- profit and governmental audits. His relevant experience includes The Children's Trust Contracts for Miami-Dade County and GLTBQ; Early Learning Coalition of - Broward County; Legal Services of Miami, Inc.; Broward Community & Family Health Centers, Inc.; FAMU Foundation; BAC Funding Corp; BAC Consortium; ie J," Urban Initiatives, Inc.; the City of Quincy, Florida; City of Gretna, Florida; City of Lake Worth, Florida(includes CAFR); School Board of Broward County, Florida(joint venture) (includes CAFR); Miami-Dade Aviation Department; and Tallahassee Leon County Civic Center Authority; and Port of Miami Crane Management. He has had an opportunity to function as an in-charge on our smaller less complex governmental audits. He has forensic and performance audit experience as follows: Forensic audit of the Utility District of the City of Riviera Beach, Florida; and Forensic audit of the Customer Services Department for the City of Wilton Manors. Once fieldwork commences, the staff assigned to the City's engagement will be totally devoted to the engagement to complete it in a timely manner. BCA Watson Rice LLP Page 17 • Miami Beach, Florida Senior audit personnel will have significant involvement in the planning of the engagement and meeting with the City's Commission members to address the risk of fraud as required by our professional standards. Contact will be maintained prior to the audit and during to audit progress meetings will be conducted to inform management of status of the audit. Staff will be available during and subsequent to the audit to address any questions management may have. Availability of the Firm From a combined firm-wide pool of almost 300 professionals the Firm has the ability and is willing to commit and maintain staffing, both number and level, to successfully conclude the audits within the time constraints outlined in the Request for Proposals for succeeding audits. The Firm is also willing to commit to the availability of assigned partners and managers to meet with the administration and the Commission Members on any material matters that could affect the City. BCA Watson Rice LLP Page 18 Miami Beach, Florida RONALD THOMPKINS, CPA, CGMA Engagement Partner Ronald Thompkins is a Partner in BCA Watson Rice's assurance practice and has over 40 years of experience in public accounting specializing in auditing, accounting, and consulting services for government, nonprofit agencies, organizations and commercial entities. He has led complex engagements with numerous teams conducting simultaneous audits at multiple locations. Ron is the past president of the Florida Institute of CPAs, and a former member of the AICPA Board of Directors. He is currently president of Florida Memorial University's Business Advisory Committee. Experience • Engagement partner of audits of several nonprofit organizations receiving federal and state grants and contracts in accordance with generally accepted auditing standards, Government Auditing Standards, and OMB Circular A-133. Some of his nonprofit and governmental clients include: • City of Lake Worth • City of Riviera Beach (City, CRA, Utility Special District) • City of Riviera Beach (sub-contractor for Marina Project and prime for Agreed upon Procedures) ▪ Florida A& M University (Foundation, National Alumni Association & Boosters) • University of Miami, Inc. (while with another firm) • Miami-Dade County, Department of Parks, Recreation and Outdoors Spaces (The Children's Trust grant audits) • Alliance for GLTBQ Youth (The Children's Trust grant audits) • Florida Memorial College (South African Teachers' Grant) • School Board of Broward County (Joint venture) • Miami-Dade County School Board (Joint venture) • Early Learning Coalition of Broward County • Legal Services of Greater Miami, Inc. • Bright Futures Charter School • City of Pembroke Pines, Florida (includes charter schools) ▪ City of Oakland Park, Florida • City of Gretna, Florida • Tallahassee Leon County Civic Center Authority • Miami-Dade Expressway Authority • South Florida Regional Transportation Authority • Port of Miami Crane Management • City of Wilton Manors, Florida • Broward County Housing Authority • City of Opa-locka, Florida • City of Lauderhill, Florida BCA Watson Rice LLP Page 19 Miami Beach, Florida • City of Mid Way, Florida • Village of El-Portal • City of Tuskegee, Florida • School Board of Broward County (joint venture) Education • BA, Accounting, Howard University Certifications/Affiliations • Certified Public Accountant(Florida &Alabama) • American Institute of Certified Public Accountants • Florida Institute of Certified Public Accountants C.P.E. • Total: Total CPE Credits 134 (107 Governmental) BCA Watson Rice LLP Page 20 Miami Beach, Florida ALBERT J. LUCAS, CPA, MBA, CIA, CISA Concurring Review Partner ALBERT J. LUCAS, CPA, MBA, CIA, CISA Albert J. Lucas, has over twenty-five years of audit and business consulting experience. He serves as engagement partner or quality control partner of financial and compliance audits of government and nonprofit clients. Albert manages audit teams that perform financial audit, internal controls and performance reviews. CERTIFICATIONS Certified Public Accountant (Washington, DC; Florida (Pending)), Certified Internal Auditor, Certified Information Systems Auditor. RELEVANT Albert's related activities include the following: EXPERIENCE • Served as Engagement Partner for the annual financial and compliance audits of the Prince George's County Housing Authority. • Served as Engagement Partner on the annual financial statement audit of Prince George's County, MD, which has nearly $5 billion in assets and$1.6 billion in revenue. He also performed the compliance audit of federal expenditures in accordance with OMB Circular A-133. • Served as Engagement Partner of the annual financial and compliance audits of the Washington Suburban Sanitary Commission WSSC), a regulated utility that provides water to over 1 million customers in the Washington metropolitan area and operates 7 water treatment facilities. WSSC has more than $4 billion in net assets. Albert has served as partner on numerous audits of government, nonprofit, and commercial clients. Major clients serviced include Freddie Mac, Fannie Mac, Ginnie Mae, Washington Gas, Potomac Power and Electric Company, California Public Utilities Commission, the US Small Business Administration, and the District of Columbia Government. In addition to his audit responsibilities, Albert's responsibilities also include new business development, staff development, training, and office management. BACKGROUNG Lucas is a member of the American Institute of Certified Public AND EDUCATION Accountants,and a member of the Institute of Internal Auditors. Lucas graduated from Cornell University with a Bachelor of Science degree in Economics and obtained a Master's in Business Administration in Accounting and Finance from the University of Rochester. CONTINUING PROFESSIONAL EDUCATION Total CPE Credits 145 ( 63 Governmental) BCA Watson Rice LLP Page 21 Miami Beach, Florida CHARLTON SAMPSON, PMP, CISA, CISM, CSM Information Technology/Information Security Expert Education University of the District of Columbia,Washington, DC BBA, Computer Information Systems Science Certifications: • Certified Software Manager(CSM) • Certified Information Systems Auditor(CISA) • Certified Information Security Manager(CISM) • Project Management Professional (PMP) Duties and Charlton will provide technical assistance to the audit team on Responsibilities Information Technology (IT) audit procedures related to our approach and methodology. He will ensure that the engagement complies with our stringent IT audit related quality control standards. Charlton will review the SAS 70 reports for any third- party service organizations. Experience Principal-in-Charge of Information Technology Assurance & Control • Manages a team of IT professionals (teams from two to 20 managers, senior associates and associates). Charlton assisted the Pension Benefit Guaranty Corporation (US DEPARTMENT OF STATE) in implementing management controls over their mission critical information systems. This included planning for and implementing adequate internal controls to minimize potential for waste, fraud, and mismanagement. He conducted required Control Objectives Validation and Integration for the US DEPARTMENT OF STATE's mission critical financial systems. He was responsible for producing the resulting report that includes detailed recommendations for improvements, where necessary. This engagement was in compliance with Federal regulations including FISMA, FMFIA and OMB Circular A-123, A-127 and A-130. NIST 800 Series Guidelines, GAO's FISCAM and ITIL are being used for guidance, methodology and approach. • Performed the assessment of the IT functional area for the Stratified Management and Operations Audit of FirstEnergy and the City of Lake Worth. Charlton was responsible for all of the IT assessment tasks including the company's ability to develop applications on time and within budget. FirstEnergy's BCA Watson Rice LLP Page 22 Miami Beach, Florida IT infrastructure includes several Local Area Networks (LANs), one Wide Area Network (WAN), two Data Centers, two large Mainframe Computers and Internet connectivity. We utilized ISACA's CoBIT as the framework for this engagement. • Served the Millennium Challenge Corporation (MCC) as the engagement principal for a FISMA and FMFIA compliance audit of selected countries Integrated Financial Management Systems. We utilized the NIST 800 Series Guidelines and GAO FISCAM. • Managed an engagement to implement a Decision Support System for the District of Columbia's Housing Authority. This project included the scheduling and performing the review of approximately 10K physical files and preparing them for conversion. In addition, the project team conducted reengineering of the current work-flow to effectively utilize suitable IT. • Served as Project Manager for the City of Norfolk, Department of Utilities engagement. This engagement involved reengineering their Customer Service and information systems operations using "best Practices" including CoBIT. • Served the Department of Homeland Security as the IT/IS Subject Matter Expert for an External Peer Review of selected IT audits. We utilized NIST 800 Series Guidelines and GAO' FISCAM to comply with Federal Regulations including FISMA and FMFIA. • Assisted the AARP in establishing an Internet presence to allow its members to renew their membership and applicants to apply on-line using a credit card. He ensured the optimum design of the site to ensure security and integrity. • Completed an IT audit for the Prince George's County Public School. He was responsible for auditing the financial management systems to determine whether or not the financial auditors can rely on the financial statements produced by the system. Collins Consulting Group, Fairfax Virginia Director, Information Systems Security&Audit • Mr. Sampson was responsible for directing the day-to-day efforts of 11 IT professionals in providing information systems BCA Watson Rice LLP - a Page 23 Miami Beach, Florida risk management services to the Federal Deposit Insurance Corporation. He managed the security programs encompassing security controls, access control, IT auditing/monitoring, program and policy development, and security personnel coordination. He also provided professional expertise to the FDIC in their effort to secure their information systems resources, which included a large IBM mainframe, a Wide Area Network (WAN), several LANs (Windows NT) and several Internet Web Pages. Mr. Sampson provided technical management of the team and the production of all deliverables. He was also responsible for progress reporting to the client. In addition, he managed an IT Security review for the Department of State. He was responsible for conducting the audit work and producing the audit report. Held various IT/IS Audit and Project Management Positions for the following companies: Williams Adley and Company, Washington, DC MCI, Arlington, VA Perpetual Savings Bank, F.S.B., Alexandria, VA Years of 20 Experience Achievements Achievements include client satisfaction and opportunities for improvement in clients' information systems. Awarded follow-on or new contracts as a result of the quality of services provided. BCA Watson Rice LLP Page 24 Miami Beach, Florida CARSHENA T. ALLISON, CPA, MBA Audit Manager Ms. Allison, a manager in the assurance practice of BCA Watson Rice, has more than 7 years of audit experience (including 4 years "Big 4"). She directs and manages clients primarily in the client service areas of the Not-for-Profit and State and Local Government Sector market. She is a remarkably gifted and knowledgeable Auditor with substantial background in carrying out an independent appraisal of the effectiveness of the policies, procedures and standards by which organization's financial, physical and information resources are managed. Ms. Allison has extensive experience in financial audits, operations and reporting; process re-engineering and internal control reviews. Experience Performed financial statement and compliance audits of government governmental entities, and non profits. Related experience includes Miami-Dade County, Department of Parks, Recreation and Outdoors Spaces (The Children's Trust grant audits); Audits of Florida A&M University Foundation and the Coulter Foundation (while with a Big Four Firm). Single audit experience includes: City of lake Worth, Florida, South Florida Regional Transit Authority, Early Learning Coalition of Broward County, School Board of Broward, South Florida Workforce, City of Lake Worth, City of Riviera Beach, Miami-Dade Expressway Authority, and Miami Downtown Development Authority. Education Master of Business Administration, Florida State University Bachelors in Accounting, Florida A& M University Certifications/Affiliations Certified Public Accountant-Florida American Institute of Certified Public Accountants - Member Florida Institute of Certified Public Accountants—Vice Chair local chapter C.P.E. Total: 125 (80 Governmental) BCA Watson Rice LLP Page 25 Miami Beach, Florida ■ RHEA RIVERA, CPA (PHILLIPINES) Senior Auditor Municipality-Aventura, FL Ms. Rivera is a senior auditor in BCA Watson Rice's Assurance practice. She is a focused, proactive, self-directed, results-oriented individual with almost 20 years of experience in public accounting and audit services,taxation, banking,financial and client advisory services. She has a strong knowledge of GAAP, GAAS and budgeting and forecasting. She has strong problem solving skills, exhibits demonstrated management professionalism and is an excellent team player. Experience Supervises the annual financial and single audits of Miami-Dade County, Department of Parks, Recreation and Outdoors Spaces(The Children's Trust grant audits);Alliance for GLTBQ Youth (The Children's Trust grant audits) Pembroke Pines (including its charter schools), School Board of Broward County (joint venture), Bright Futures Charter School, Legal Services of Greater Miami, South Florida Regional Transit Authority (Tri-Rail), City of Riviera Beach, City of Oakland Park, City of Wilton Manors, City of Lake Worth, Florida, and Broward County Housing Authority. Participates in client meetings, studies and develops the internal control and process memos, develops the audit program in coordination with the partner in charge, and conducts transactions testing for both financial audit and Single Audit under Circular A-133. Documents the audit work, supervises the staff and assists the partner in finalizing the audit reports. Education Bachelor of Science, Commerce (Accounting concentration), Immaculate Conception College, Philippines Certifications/Affi I iations Certified Public Accountant(Philippines) American Institute Certified Public Accountants (Associate member) Florida Institute of Certified Public Accountants (Associate member) C.P.E. Total: 133 (71 Governmental A&A) BCA Watson Rice LLP Page 26 Miami Beach, Florida Thomas H. Williams, 111 EDUCATIONAL Bachelor of Business Administration,Accounting BACKGROUND Morehouse University PROFESSIONAL Thomas has almost 3 years of auditing experience and will serve as EXPERIENCE AND ROLE an in-charge on this engagement GOVERNMENTAL AND • City of Miami Beach,Florida(Resort Tax audits) NOT-FOR-PROFIT • Town of Surfside, Florida (Resort Tax Audits) EXPERIENCE • City of Quincy. Florida • City of Lake Worth, Florida • City of Gretna, Florida • City of Wilton Manors, Florida • South Florida Regional Transportation Authority(Tri-Rail) • Miami-Dade Aviation Department • Port of Miami Crane Management • School Board of Broward County(joint venture) COMPUTER SKILLS Microsoft Excel,Word,Access, Power Point Caseware, Lotus Notes PROFESSIONAL AND Associate member, American Institute of Certified Public BUSINESS Accountants AFFILIATIONS Associate member, Florida Institute of Certified Public Accountants CONTINUING PROFESSIONAL 127 (113 Governmental A&A) EDUCATION BCA Watson Rice LLP Page 27 Miami Beach, Florida RELATED EXPERIENCE BCA Watson Rice LLP Page 28 Miami Beach, Florida Resort Tax Audits (a) Client: City of Miami Beach, Florida Contact: Laura Franco-Rubines (305) 673-6241 LauraFranco-Rubinesmiamibeachfl.gov (b) Project Description: Provided the City on-going resort tax audit services to hotels, motels, bars, and restaurants from 2010 to 2013. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: Using audit methodologies developed by the City's Internal Audit Department. (e) Description of the Outcome: In the initial two years into the program we were allocated sixty (60) audits which resulted in additional assessments of approximately $39,000. Resort Tax Audits (a) Client: Town of Surfside, Florida Contact: Roger Carlton (305) 861-4863: ext. 232 rcarlton@townofsursidefl.qov (b) Project Description: Provided the City on-going resort tax audit services to hotels, motels, bars, and restaurants from 201 1-2012. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: Using audit methodologies developed by the City's Internal Audit Department. (e) Description of the Outcome: SCA Watson Rice LLP • Page 29 Miami Beach, Florida In the initial two years into the program we were allocated two (2) audits and submitted files to the City for additional review/assessment. Development of Resort Tax Procedures and Audit Program (a) Client: Greater Miami Visitors and Convention Bureau (b) Project Description: • Researched legislative history of resort development taxes applicable to Greater Miami area, • Developed audit procedures and related program, (c) Role in Project: Sub-contractor to former Touché Ross. (d) Description of Methodologies and Tools Used: Reviewed existing legislation, and interviewed governmental agencies, restaurants, and hotels. (e) Description of the Outcome: Results were used as basis for initial audit programs and procedures to collect the tax. BCA Watson Rice LLP Page 30 Miami Beach, Florida DISCIPLINARY ACTIONS TAKEN OR PENDING AGAINST THE FIRM BCA Watson Rice LLP Page 31 Miami Beach, Florida Asmonesommuumoninesmommommi DISCIPLINARY ACTIONS TAKEN OR PENDING AGAINST THE FIRM RESULTS OF DESK REVIEWS/STATUS OF ANY DISCIPLINARY ACTIONS AGAINST THE FIRM BCA Watson Rice LLP has never had any disciplinary action against it, nor is there any pending or threatened action taken against the Firm or any of its professional staff by a federal or state regulatory body or professional organization. Furthermore,there has not been any litigation or proceeding within the past three(3)years whereby a court or any administrative agency has ruled against the Firm in any manner related to its professional activities or performance,and there is no current or pending litigation or proceedings involving our Firm. DESCRIPTION OF INSURANCE COVERAGE MAINTAINED BY THE FIRM Certificates of Insurance for the Firm's Worker's Compensation insurance, General Commercial Liability and Professional Malpractice are available upon award. BCA Watson Rice LLP Page 32 Miami Beach, Florida REFERENCES BCA Watson Rice LLP Page 33 Miami Beach, Florida South Florida Regional Transportation Authority Scope of work: Single audit in accordance with Rules of the Auditor General and Government Auditing Standards Firm Partner Ronald Thompkins Principal Client Contact: Jack Stephens, Executive Director (954)942-7245 City of Oakland Park,Florida Scope of work: Single audit in accordance with Rules of the Auditor General and Government Auditing Standards(Including Audits) (including Comprehensive Annual Financial Report to GFOA) Firm Partner: Ronald Thompkins Principal Client Contact: Ming Myer, Controller (954)561-6242 City of Lake Worth,Florida Scope of work: Single audit in accordance with Rules of the Auditor General and Government Auditing Standards(Including Audits) (including Comprehensive Annual Financial Report to GFOA) Firm Partner:Ronald Thompkins Principal Client Contact: Corrine Elliott, CPA,Assistant Finance Director (561)586-1602 BCA Watson Rice LLP Page 34 Garviso, William From: Ronald Thompkins <RThompkins @bcawatsonrice.com> Sent: Wednesday, April 01, 2015 5:04 PM To: Garviso, William Cc: Granado, Rafael; Rodriguez, Lourdes; Carshena Allison Subject: RE: RFQ 2015-043-1/VG Audit Services for Resort Taxex and Other Internal Audits- City of Miami Beach Attachments: Scan from a Xerox Color- DO NOT REPLY TO THIS EMAIL. Please see attached. Thanks Ron Thompkins Ronald Thompkins, CPA, CGMA 305-947-1638 (0) 305-944-6225 (F) 305-962-2721 (M) rthompkins( bcawatsonrice.com CA- Waismiflic? Miami Office: 520 NY/ 165th Street Road Suite 205 Miami, Florida 33169-6303 Visit us on the web at www.watsonrice.com Disclaimer Required by IRS Circular 230** Unless otherwise expressly approved in advance by the undersigned, any discussion of federal tax matters herein is not intended and cannot be used 1) to avoid penalties under the Federal tax laws, or 2) to promote, market or recommended to another party and transaction or tax-related matter addressed. Confidentiality notice- This electronic message from the undersigned contains information intended for the use of the addressee(s) only, which may be privileged and confidential. If you are not an addressee, any review, distribution, or use of the contents of this message is prohibited. If you have received this message in error, please contact the sender listed above. BCA Watson Rice LLP is an Independently Owned Member of the McGladrey Alliance 1 MCGLADREY ALLIANCE 3M1 4 ' l ,.,. y The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The McGladrey Alliance member firms maintain their name, autonomy-and-independence-and--are-responsible-for their own-client fee arrangements,delivery of see vices and-maintenance of client relationships. The McGladrey Alliance is a business of RSM McGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSM McGladrey, Inc.and McGladrey&Pullen,LLP serve clients'business needs. McGladrey, the McGladrey logo and the McGladrey signature are used under license by RSM McGladrey, Inc.and McGladrey&Pullen,LLP. From: Garviso, William [mailto:WilliamGarviso @miamibeachfl.gov] Sent: Tuesday, March 31, 2015 8:36 AM To: 'RThompkins @bcawatsonrice.com' Cc: Granado, Rafael; Rodriguez, Lourdes; Carshena Allison Subject: RE: RFQ 2015-043-WG Audit Services for Resort Taxex and Other Internal Audits- City of Miami Beach Good Morning, Can you please revise the attached form which you submitted as part of your proposal to reflect your response below to the Equal Benefits? Will need two copies; one for each of your responses Resort Tax Audits and Other Internal Audits. C7801//1110=111=191 William Garviso, CPPB Procurement Department 1700 Convention Center Drive, Miami Beach, FL 33139 Tel: 305-673-7000 Ext. 6650/Fax: 786-394-4002/williamaarviso(c�miamibeachfl.gov We are committed to providing excellent public service and safety to all who live,work and play in our vibrant, tropical,historic community. From: Ronald Thompkins [mailto:RThompkinsCahbcawatsonrice.com] Sent: Wednesday, March 11, 2015 12:26 PM To: Garviso, William Cc: Granado, Rafael; Rodriguez, Lourdes; Carshena Allison Subject: RE: RFQ 2015-043-WG Audit Services for Resort Taxex and Other Internal Audits- City of Miami Beach Please See responses below: From: Garviso, William [mailto:WilliamGarviso @miamibeachfi.gov] Sent: Friday, March 6, 2015 11:30 AM To: 'Thompkins @BCAwatsonrice.com' Cc: Granado, Rafael; Rodriguez, Lourdes Subject: RFQ 2015-043-WG Audit Services for Resort Taxex and Other Internal Audits- City of Miami Beach 2 Good Morning Mr. Thompkins, In order to further evaluate your proposals for the above mentioned (RESORT TAX AUDITS)solicitation we need the following clarification or additional information. Your firm submitted two proposals for the Resort Tax Audits portion of the solicitation, Should we only consider your proposals dated 2/26/15? YES, ONLY THE 2/26/2015 SUBMITTAL —In our proposal we requested disclosure of any litigation within the past five (5)years. Your proposal stated that (page 15) it had none to disclose, however Page 60 "there has not been any litigation or proceeding within the past three (3) years." Please clarify. We have had no litigation within last five (5)years Please clarify your response to the Proposal Certification Questionnaire and Requirements Affidavit, Paragraph 9 Equal Benefits. Your firm responded "Yes" you provide benefits, then stated that your firm doesn't provide benefits, it also read "See Attached" but we saw no attachment. We Offer health insurance,sick leave, family medical leave, and bereavement leave for employees with spouses and employees with domestic partners. Please provide the email contact information for the references provided on page 34 of your submission. JACK L. STEPHENS South Florida Regional Transportation Authority Stephens)@sfrta.fl.gov Ming Myer City of Oakland Park, Florida mingm @oakiandparkfl.org Corrine Elliott City of Lake Worth, Florida Celliott@lakeworth.org In order to further evaluate your proposal for the above mentioned (OTHER INTERNAL AUDITS) solicitation we need the following clarification or additional information. In our proposal we requested disclosure of any litigation within the past five (5)years. Your proposal stated that (page 15) it had none to disclose, however Page 60 "there has not been any litigation or proceeding within the past three (3) years." Please clarify. We have had no litigation within last five (5)years Please clarify your response to the Proposal Certification Questionnaire and Requirements Affidavit, Paragraph 9 Equal Benefits. Your firm responded "Yes" you provide benefits, then stated that your firm doesn't provide benefits, it also read "See Attached" but we saw no attachment We Offer health insurance,sick leave, family medical leave, and bereavement leave for employees with spouses and employees with domestic partners. 3 William Garviso, CPPB Procurement Department 1700 Convention Center Drive, Miami Beach, FL 33139 Tel: 305-673-7000 Ext. 6650/ Fax: 736-394-4002/williamgariiso(D,miamibeachr'l.aov We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community. This email has been scanned by the Symantec Email Security.cloud service. For more information please visit http://www.svmanteccloud.corn This email has been scanned by the Symantec Email Security.cloud service. For more information please visit http://www.svmanteccloud.cotn 4 C. Please check all benefits that apply to your answers above and list in the'other'section any additional benefits not already specified. Note: some benefits are provided to employees because they have a spouse or domestic partner, such as bereavement leave: other benefits are provided directly to the spouse or domestic partner,such as medical insurance. • BENEFIT Firm Provides for I Firm Provides for I Firm does not Employees with I Employees with i Provide Benefit Spouses I Domestic Partners Health Sick Leave Family Medical Leave I x x i • Bereavement Leave x t if Proposer cannot offer a benefit to domestic partners because of reasons outside your control, (e.g., there are no insurance providers in your area willing to offer domestic partner coverage) you may be eligible for Reasonable Measures compliance. To comply on tis basis, you must agree to pay a cash equivalent and submit a completed Reasonable Measures Application (attached) with all necessary documentation. Your Reasonable Measures Application will be reviewed for consideration by the City Manager,or his designee. Approval is not guaranteed and the City Manager's decision is final. Further information on the Equal Benefits requirement is available at vww.miamibeachfl.gov/procurementi. (See attached) 10. Public Entity Crimes. Section 287.1•33(2)(a). Florida Statutes, as currently enacted or as amended from time to time. states that a person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a proposal, proposal,or reply on a contract to provide any goods or services to a public entity;may not submit a proposal,proposal,or reply on a contract with a public entity for the construction or repair of a public building or public work: may not submit proposals.proposals, or replies on leases of real property to a public entity:may not be awarded or perform work as a contractor. supplier,subcontractor,or consultant under a contract with any public entity:.and may not transact business with any public entity in excess of the threshold amount provided in a. 287_017 for CATEGORY EGORY TWO for a period of 36 months following the date of being placed on the convicted vendor list. SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document, Proposer agrees with the requirements of Section 287.133; Florida Statutes. and certifies it has not been placed on convicted vendor list, 11 Acknowledgement of Addendum. After issuance of solicitation', the City may release one or more addendum to the solicitation which may provide additional information to Proposers or alter solicitation requirements. The City will strive to reach every Proposer having received solicitation through the City's e- procurement system, PublicPurchase.com. However, Proposers are solely responsible for assuring they have received any and all addendum issued pursuant to solicitation. This Acknowledgement of Addendum section certifies that the Proposer has received all addendum released by the City pursuant to this solicitation. Failure to obtain and acknowledge receipt of ail addendum may result in proposal disqualification_ initial to Confirm Initial to Can!irn . Initial to Confirm I Receipt 1 Rece.let Recall)! ? i Addendum 1 Addendum 6 I Addendum 11 Addendum 2 ` addendum 7 i .Addendum 12 L ' r Addendum 3 Addendum 8 i Addendum 13 Addendum 4 Addendum 9 t Addendum 14 i /' I Addendum 5 i Addendum 10 i Addendum 15 if additional coniirmation of addendum is required,submit under separate cover. • 14 • • S' / ,t, _ ,......,......... ...,...L._.,,,,..., ,,,... _,pi .„ -..---.,..., ,, I it . li : 4\,,, ,,,. . )0 P , : ,�- - 'NHS IS HOW WE CELEBRATE' y .. 2 The City of Miami Beach,Florida i Response to Request � for Qualifications . To Provide AUDIT SERVICES FOR RESORT TAXES AND OTHER INTERNAL AUDITS RFQ#2015-043-WG it (Internal Audit Services) Due: February 26, 2015; 3:PM Submitted By: Ronald Thompkins,CPA,CGMA Office Managing Partner BCA Watson Rice LLP i 520 NW 165'Street Road Suite 205 Miami,Florida 33169 Tel.(305)947-1638 Fax(305)944-6225 Website:5114:1YALntsonrice.cQ E-mail:rthomnLins a BCA N%atsonrice.com 1111' Watsonilice® F TITLE PAGE AUDIT SERVICES FOR RESORT TAXES RFQ TITLE AND OTHER INTERNAL AUDITS FIRM'S NAME BCA Watson Rice LLP BUSINESS ADDRESS 520 NW 165th Street Road, Suite 205 Miami, Florida 33169 TELEPHONE NUMBERS (305)947-1638(Office) (800)599-3103 (305)944-6225(Fax) E-MAIL ADDRESS rthompkinsu!BCAwwatsonrice.c ENGAGEMENT PRINCIPAL Ronald Thompkins,CPA WEBSITE www.bcawatsonrice.corn EMPLOYER I.D.NUMBER 26-1936394 DATE February 26,2015 • Miami Beach, Florida TABLE OF CONTENTS TAB 1 I.1-Cover Page 2 1.2-Proposal Certification,Questionnaire,And Requirements Affidavit 1.3-Minimum Qualifications Requirements 4 TAB 2 2.1-Qualifications Of Proposer 7 2.2-Qualifications Of Proposer Team 11 1! Walsoiiflice® COVER LETTER February 26,2015 City of Miami Beach Florida Procurement Department 3'd Floor 1700 Convention Center Drive Miami Beach,Florida 33139 Attn: Selection Committee Dear Ladies and Gentlemen: We are pleased to present the qualifications of BCA Watson Rice LLP(referred to hereinafter as"BCA WR"or"BCA Watson Rice")to perform INTERNAL AUDIT services on an As Needed Basis pursuant to the Miami Beach's(the"City")Request For Qualifications(RFQ)RFQ#2015-043 WG. We previously provided an array of internal, forensic and performance audits to a number of governmental clients throughout the country (including the City of Miami Beach, Florida). Accordingly,we understand the work to be done as outlined in the RFQ. BCA Watson Rice stands ready to provide the City with strong capabilities in all areas relevant to Resort Tax Audits, and we have assembled a strong and highly qualified team. As a result of our forty(40) years of experience with governmental audits at the federal,state,and County levels,coupled with our "state-of-the-art"technical skills; we possess the necessary knowledge and understanding to conduct these audit in the most efficient and effective manner. We have earned a reputation for excellence by strictly adhering to the highest ethical standards of the profession for forty(40)years. This commitment to quality has helped position us among the nation's leading mid-sized accounting firms. We stand ready to provide you strong capabilities in all areas relevant to the audit. We have a combined staff of almost three-hundred(300)professionals dedicated to the governmental sector.We believe this strength is unsurpassed by any other proposer.We believe we are the best qualified firm to perform this engagement. With offices in Florida, California, New York, New Jersey and Washington,DC we are ready to serve you with enthusiasm and we welcome the opportunity to exceed your expectations! We declare we are able and willing to commit and maintain staffing, both number and level, to successfully conclude the audits in the time frame specified in this RFQ. Please feel free to contact me at(305)962-2721 (cell)or(305)947-1638(office)with any questions you may have. The undersigned has the authority to make representations for this firm. Very truly yours, BCA WATSON RICE LLP Ronald Thompkins.CPA.CGMA Partner BCA Watson Rice LLP Page 2 Miami Beach, Florida 12-PROPOSAL CERTIFICATION, Q[TESTIONNAIRE, AND REQUIREMENTS AFFIDAVIT Soriataton No Soia1ation 2015.043-WG AUDITS OF RESORT TAXES AND OTHER INTERNAL AUDITS AS NEEDED Procurement Contact: Tel. • Ema3- Witliam Garviso 305.6731000 x 6650 williarngarviso ov PROPOSAL CERTIFICATION.QUESTIONNAIRE&REQUIREMENTS AFFIDAVIT Purpose: The purpose of this Proposal Certification, Questionnaire and Requirements Affidavit Form is to inform prospective Proposers of certain solicitation and contractual requirements, and to collect necessary information from Proposers in order that certain portions of responsiveness, responsibility and other determining factors and compliance with requirements may be evaluated, This Proposal Certification, Questionnaire and Requirements Affidavit Form is a REQUIRED FORM that must be submitted fully completed and executed. General Proposer Information. PROPOSER NAME BCA Watson Rice LLP No of Years:n Business' No of Years in Business Locally I No of Employees 40 34 I 290 OTHER NAMEtSI-PROPOSER HAS OPERATED UNDER IN THE LAST 10 YEARS Watson Rice.Watson Rice Hadnott Thompkins&Cruz TCBA Watson Rice LLP PROPOSER PR MARY ADDRESS tHEADOUARTERSY 5 Penn Plaza , 15th Floor CITY New York STATE ZIP CODE New York 10001 TELEPHONE NO 212-447-7300 TOLL FREE No 800-945-5970 FAX NO 212-683-6031 FIRM LOCAL AOCRESS. 520 NW 165th Street Road,Suite 205 CITY Miami STATE Florida ZIP CODE 33169-6303 PRIMARY ACCOUNT REPRESENTATIVE FOR THIS ENGAGEMENT Ronald Thompkins,CPA,CGMA ACCOUNT REP TELEPHONE NO. 305-947-1638 ext. 16 or 305-962-2721 cell ACCOUNT REP IOU.FREE NO 800-599-3103 ACCOUNT REP EMAIL rthompkins @bcawatsonrice.com FEDERAL TAX IDENTIFICATION NO- 26-1936394 The City reserves the right to seek additional information from Proposer or other source(s),including but not limited to: any firm or principal information, applicable licensure resumes of relevant individuals, client information, financial Information, or any information the City deems necessary to evaluate the capacity of the Proposer to perform in accordance with contract requirements. l 1. Veteran Owned Business.Is Pro ser claimin•a veteran owned business status? YES © NO SUBMITTAL REQUIREMENT: Proposers claiming veteran owned business status shall submit a documentation proving that firm is certified as a veteran-owned business or a service-disabled veteran owned business by the State of Florida or United States federal government, as required pursuant to ordinance 2011-3748. 2. Conflict Of Interest. Ali Proposers must disclose, in their Proposal, the name(s)of any officer, director. agent,or immediate family member(spouse,parent,sibling,and child)who is also an employee of the City of Miami Beach, Further, all Proposers must disclose the name of any City employee who owns, either directly or indirectly.an interest of ten(10%)percent or more in the Proposer entity or any of its affiliates. SUBMITTAL REQUIREMENT: Proposers must disclose the name(s) of any officer, director. agent, or immediate family member(spouse,parent,sibling,and child)who is also an employee of the City of Miami Beach Proposers must also disclose the name of any City employee who owns.either directly or indirectly. an interest of ten(10%)percent or more in the Proposer entity or any of its affiliates NONE 3- References & Past Performance. Proposer shall submit at least three (3) references for whom the Proposer has completed work similar in size and nature as the work referenced in solicitation. SUBMITTAL REQUIREMENT:For each reference submitted,the following information is required. 1)Firm Name,2)Contact individual Name&Title,3)Address,4)Telephone,5)Contact's Email and 6)Narrative on Scope of Services Provided. (See attached) 4. Litigation History.Proposer shall submit a statement of any litigation or regulatory action that has been tiled against your firm(s)in the last five years. If an action has been filed. state and describe the litigation or regulatory action filed.and identify the court or agency before which the action was instituted,the applicable case or file number,and the status or disposition for such reported action.If no litigation or regulatory action has been filed against your firm(s),provide a statement to that effect.If'No*litigation or regulatory action has been filed against your firm(s),please provide a statement to that effect Truthful and complete answers to this question may not necessarily disqualify a firm from consideration but will be a factor in the selection process. Untruthful, misleading or false answers to this question shall result in the disqualification of the firm for this project. SUBMITTAL REQUIREMENT: Proposer shall submit history of litigation or regulatory action filed against proposer, or any proposer team member firm,in the past 5 years. If Proposer has no litigation history or regulatory action in the past 5 years,submit a statement accordingly. NONE 5. Suspension,Debarment or Contract Cancellation.Has Proposer ever been debarred,suspended or other legal violation,or had a contract cancelled due to non-. rformance by any public sector agency? _ J YES Q NO SUBMITTAL REQUIREMENT:It answer to above is`YES,'Proposer shall submit a statement detailing the reasons that led to action(s) 15 5. Vendor Campaign Contributions, Proposers are expected to be or become friar with the City's Campaign Finance Reform laws,as codified in Sections 2-487 through 2-490 of the City Code. Proposers shall be solely responsible for ensuring that all applicable provisions of the City's Campaign Finance Reform laws are complied with, and shall be subject to any and all sanctions, as prescribed therein, including disqualification of their Proposals,in the event of such non-compliance. SUBMITTAL REQUIREMENT: Submit the names of all individuals or entities (including your sub- consultants)with a controlling financial interest as defined in solicitation.For each individual or entity with a controlling financial interest indicate whether or not each individual or entity has contributed to the campaign either directly or indirectly,of a candidate who has been elected to the office of Mayor or City Commissioner for the City of Miami Beach. NONE 7 Code of Business Ethics.Pursuant to City Resolution No.2000-23879,each person or entity that seeks to do business with the City shall adopt a Code of Business Ethics ('Code°) and submit that Code to the Procurement Division with its proposal/response or within five(5)days upon receipt of request. The Code shall,at a minimum,require the Proposer,to comply with all applicable governmental rules and regulations including,among others,the conflict of interest,lobbying and ethics provision of the City of Miami Beach and Miami Dade County_ SUBMITTAL REQUIREMENT: Proposer shall submit firm's Code of Business Ethics. In lieu of submitting Code of Business Ethics,Proposer may submit a statement indicating that it will adopt.as required in the ordinance,the City of Miami Beach Code of Ethics,available at www.miamibeachfl gov/procurement/- (See attached) •, • .• :t : .. .• ! • -- � . . . . ..- • . •.. f .. .• •• SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document,Proposer agrees to the living wage requirement. 16 9, Equal Benefits for Employees with Spouses and Employees with Domestic Partners.When awarding competitively solicited contracts valued at over 5100.000 whose contractors maintain 51 or more full lime employees on their payrolls during 20 or more calendar work weeks, the Equal Benefits for Domestic Partners Ordinance 2005-3494 requires certain contractors doing business with the City of Miami Beach, who are awarded a contract pursuant to competitive proposals. to provide 'Equal Benefits' to their employees with domestic partners,as they provide to employees with spouses.The Ordinance applies to all employees of a Contractor who work within the City limits of the City of Miami Beach, Florida. and the Contractor's employees located in the United States,but outside of the City of Miami Beach limits,who are • directly performing work on the contract within the City of Miami Beach. A. Does your company provide or offer access to any benefits to employees with spouses or to spouses of employees? X YES [ NO B Does your company provide or offer access to any benefits to employees with(same or opposite sex) domestic partners'or to domestic partners of ern yees? X YES NO • 17 C. Please check all benefits that apply to your answers above and:ist in the'other'section any additional benefits not already specified. Note:some benefits are provided to employees because they have a spouse or domestic partner. such as bereavement leave: other benefits are provided directly to the spouse or domestic partner,such as medical insurance. BENEFIT Firm Provides for Firm Provides for Firm does not Employees with Employees with Provide Benefit Spouses Domestic Partners Health Sick Leave I I x Family Medical Leave 1 I x Bereavement Leave I I x If Proposer cannot offer a benefit to domestic partners because of reasons outside your control,(e g-,there are no insurance providers in your area willing to offer domestic partner coverage)you may be eligible for Reasonable Measures compliance To comply on this basis,you must agree to pay a cash equivalent and submit a completed Reasonable Measures Application (attached)with all necessary documentation. Your Reasonable Measures Application will be reviewed for consideration by the City Manager,or his designee. Approval is not guaranteed and the City Manager's decision is final. Further information on the Equal Benefits requirement is available at www miamibeachff.goviprocurementi. (See attached) 10. Public Entity Crimes. Section 287-133(2)(a), Florida Statutes, as currently enacted or as amended from time to time,states that a person or affiliate who has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a proposal.proposal,or reply on a contract to provide any goods or services to a public entity,may not submit a proposal.proposal,or reply on a contract with a public entity for the construction or repair of a public building or public work;may not submit proposals,proposals. or replies on leases of real property to a public entity;may not be awarded or perform work as a contractor. supplier,subcontractor,or consultant under a contract with any public entity;and may not transact business with any public entity in excess of the threshold amount provided in s.257.017 for CATEGORY TWO for a period of 36 months following the date of being placed on the convicted vendor fist. SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document,Proposer agrees with the requirements of Section 287133.Florida Statutes,and certifies it has not been placed on convicted vendor list. 11 Acknowledgement of Addendum. After issuance of solicitation, the City may release one or more addendum to the solicitation which may provide additional information to Proposers or alter solicitation requirements.The City will strive to reach every Proposer having received solicitation through the City's e- , procurement system, PublicPurchase.com, However. Proposers are solely responsible for assuring they have received any and all addendum issued pursuant to solicitation.This Acknowledgement of Addendum section certifies that the Proposer has received all addendum released by the City pursuant to this solicitation. Failure to obtain and acknowledge receipt of all addendum may result in proposal disqualification. trUtjal to Confirm Initial to Confirm 410531 t0 Confirm Receipt R Receipt 14 `Addendum 1 _ Addendum S Addendum 11 /q Addendum 2 1 Addendum 7 Addendum 12 I Addendum 3 _ - Addendum 8 Addendum 13 Addendum 4 Addendum 9 ; Addendum 14 41 "Addendum 5 _ Addendum 10 j Addendum 15 If additional confirmation of addendum is required.submit under separate cover. 18 4 DISCLOSURE AND DISCLAIMER SECTION The solicitation referenced herein is being furnished to the recipient by the City of Miami Beach (the'City) for the recipient's convenience.Any action taken by the City in response to Proposals made pursuant to this solicitation,or in making any award,or in failing or refusing to make any award pursuant to such Proposals,or in cancelling awards,or in withdrawing or cancelling this solicitation.either before or after issuance of an award.shall be without any liability or obligation on the part of the City. In its sole discretion,the City may withdraw the solicitation either before or after receiving proposals,may accept or reject proposals.and may accept proposals which deviate from the solicitation,as it deems appropriate and in its best interest In its sole discretion, the City may determine the qualifications and acceptability of any party or parties submitting Proposals in response to this solicitation. Following submission of a Bid or Proposal, the applicant agrees to deliver such further details, information and assurances, including financial and disclosure data, relating to the Proposal and the applicant including, without limitation,the applicant's affiliates,officers,directors,shareholders,partners and employees,as requested by the City in its discretion. The information contained herein is provided solely for the convenience of prospective Proposers. It is the responsibility of the recipient to assure itself that information contained herein is accurate and complete.The City does not provide any assurances as to the accuracy of any information in this solicitation. Any reliance on these contents,or on any permitted communications with City officials,shall be at the recipient's own risk. Proposers should rely exclusively on their own investigations, interpretations, and analyses. The solicitation is being provided by the City without any warranty or representation,express or implied,as to its content,its accuracy,or its completeness. No warranty or representation is made by the City or its agents that any Proposal conforming to these requirements will be selected for consideration,negotiation,or approval. The City shall have no obligation or liability with respect to this solicitation, the selection and the award process,or whether any award will be made. Any recipient of this solicitation who responds hereto fully acknowledges all the provisions of this Disclosure and Disclaimer, is totally relying on this Disclosure and Disclaimer, and agrees to be bound by the terms hereof.Any Proposals submitted to the City pursuant to this solicitation are submitted at the sole risk and responsibility of the party submitting such Proposal. This solicitation is made subject to correction of errors, omissions, or withdrawal from the market without notice Information is for guidance only.and does not constitute all or any part of an agreement. The City and all Proposers will be bound only as,if and when a Proposal(or Proposals),as same may be modified, and the applicable definitive agreements pertaining thereto,are approved and executed by the parties,and then only pursuant to the terms of the definitive agreements executed among the parties.Any response to this solicitation may be accepted or rejected by the City for any reason,or for no reason,without any resultant liability to the City The City is governed by the Government-in-the-Sunshine Law,and all Proposals and supporting documents shaH be subject to disclosure as required by such law. All Proposals shall be submitted in sealed proposal form and shall remain confidential to the extent permitted by Florida Statutes, until the date and time selected for opening the responses.At that time.all documents received by the City shall become public records. Proposers are expected to make all disclosures and declarations as requested in this solicitation.By submission of a Proposal, the Proposer acknowledges and agrees that the City has the right to make any inquiry or investigation it deems appropriate to substantiate or supplement information contained in the Proposal,and authorizes the release to the City of any and all information sought in such inquiry or investigation.Each Proposer certifies that the information contained in the Proposal is true,accurate and complete,to the best of its knowledge,information,and belief, Notwithstanding the foregoing or anything contained in the solicitation,all Proposers agree that in the event of a final unappealabte judgment by a court of competent jurisdiction which imposes on the City any liability arising out of this solicitation,or any response thereto,or any action or inaction by the City with respect thereto,such liability shall be limited to $10.000.00 as agreed-upon and liquidated damages. The previous sentence, however, shall not be construed to circumvent any of the other provisions of this Disclosure and Disclaimer which imposes no liability on the City. 19 in the event of any differences in language between this Disclosure and Disclaimer and the balance of the solicitation, it is understood that the provisions of this Disclosure and Disclaimer shall always govern. The solicitation and any disputes arising from the solicitation shaH be governed by and construed in accordance with the laws of the State of Florida. • 10 . . PROPOSER CERTIFICATION I hereby certify that I, as an authorized agent of the Proposer, am submitting the following information as my firm's proposal; Proposer agrees to complete and unconditional acceptance of the terms and conditions of this document, inclusive of this solicitation,all attachments,exhibits and appendices and the contents of any Addenda released hereto. and the Disclosure and Disclaimer Statement; Proposer agrees to be bound to any and all specifications, terms and conditions contained in the solicitation,and any released Addenda and understand that the following are requirements of this solicitation and failure to comply will result in disqualification of proposal submitted;Proposer has not divulged, discussed,or compared the proposal with other Proposers and has not colluded with any other Proposer or party to any other proposal; Proposer acknowledges that all information contained herein is part of the public domain as defined by the State of Florida Sunshine and Public Records taws;all responses,data and information contained in this proposal. inclusive of the Pro'► -1 Certification,Questionnaire and R-•uirements Affidavit are true and accurate. Name of Proposers Authorized Representative. rime of Proposers Authorized Representative: Ronald Thompkins Partner Signature of Proposers Authorized Representative Dale February 23,2015 Stale of ti Vora ) On the e' day of F3w'"`Y ,20 personally appeared before me gra'otz 7 " 'llv o County offrt;rf`ri1;--0 r`fidr: ) stated that (s)h_e is ofAc.�r�►t3� ,t___ a corporation, and that the instrument was signed in behalf of the said corporation by authority of its board of directors and acknowledged said instrument to be its voluntary act and deed.Before me: Notary Public for the State of ftro2,'.),7 My Commission Expires.._..7/1/1/ err Notary Public State of Florida . Carol P Edwards My Commmsion EE 216584 pr rid Expires 09/16!2010 21 City of Miami Beach,Florida RFQ#2015-043-WG. PROPOSAL CERTIFICATION,QUESTIONNAIRE AND REQUIREMENTS AFFADAVIT Q.7-We certify if awarded this contract we would adopt the City's Code of Ethics Q.3-See Page 71. Miami Beach, Florida 13-Minimum Qualifications Requirements BCA Watson Rice LLP Page 4 Miami Beach, Florida ww...mbiz_org-Departnecit of State Page 1 of 2 1'L�a:►);, lit P.''.TMwNT 4. F STA':E Mil':W.': QV CORPORATi:INS toms Colbct Vs E.rg sawn Doasassd Seaman Forms drip Fiino*dram No Authority WNo No Partner talo wane Iiaeorr Partnership Detail Name Seadr f Limited liability Partnership Name I Si J BCA WATSON RICE LLP Principal Address 520 PM ta5TH STREET ROAD.SURE 2115 MINA FL 33100 Charge Date:03052013 Filing Information Document* LLP 3:03016r FERMI Nuirdaw 261936301 File Date 01 2008 Wake FL Total Pages 9 Pages in Ori ami Fang 1 s Ronda Partners NONE To Partners 1 Stabs ACTIVE Effective Dale NONE Expiration Date NONE Name FCrslory 0001 Meiling Address BCA WATSON RICE LLP P O.BOX e03725 IOAVI.FL 332093725 Charge Dabs=021/ 0t3 Registered Agent 71.IOtAP1W5 RONALD 500 PM 105 STREET RD STE 205 M AHL FL 33100 Document Images Q?2RrZOCk-LIP L View image in POF tames zsL'X►14-LLB Bttsese5s Rsr�t View image n PDF formal l 10R13(2013-LIP Status mated 'L View image it PDF tonna 1 LLP1300031913-No image aeaisbkr DIZA=L-Jamaced View image in POF forma htto:istmbiz orr/> rmdetece?actiaareD meb dir".20&amp_-. 1/152015 BCA Watson Ric LLP Page 5 Miami Beach, Florida DBPR•BCA WATSON RICE LIP,FIRM Page 1 of 1 re VDU,att 111 20 11 Licensee Details Licensee Information Name: BCA WATSON RICE LIP(Printery Name) (OSA lame) F+Sain Add: PO BOX 693725 MIAMI Florida 33269 County: DADE License ping: LfoenseLo:atinn: 520 NW 165TH STREET ROAD SUITE 205 MIAMI FL 33169 County: BROWARD License Information License Type: FIRM Rank: CPA Firers License Number: AD0003182 Status' Current Uaensure Debi: 04/09/1982 Expires: 12/31/2015 Special Qualifications Qualification Effective Pap 04/29/2013 View XisliAllansilissass.Ialsumaii2a View License Complaint teas wev Marne Sue 4 Tatahaeoea R 7Lww -Em to factsasuSeetasLteates CJ,mtnv Coosaes Ca.f.:ISO AV 1395 TM Saar d Fbrf3a to an W80 maim, re M 2 aWe1a af Alder. liidua AI.16a te..strut amuses are manc lumina 8 feu ea as pm aeon adltaa Meaner to mimeos to a d+itne a norm 00 not nine reetra*ae!m ChM eel Claris.unman as area ON aroma AI trstiOaras Mai tr fa a ta.e ear cocoons.pima Cannel IS6.417.1395.•rlalema a SeOYn a11.271(111Mem St$ane.ale.nee Dual.1.MIL tlt>eaea Mousse unbar aa>ar GS,FS eras genende O a Oemnwym wt so snail amen if Mae tiume w The swats ermined atr be iii 0 aeaa®eannauneeslan rem iTe tie viii.Na*rw*ma aaa1ni6 an p.m ream_tT Y*del mot sum is aaepf a memo aet9eR1.a,aoe gimlet*M Osdarlauen marl an slat aderera i ea4+can de nude a.atsert as tae heat Ream Dee ma 1zt pa- b dacaraer a reu are anvia0 O►the Move h sJ/wwarmrfloudalicease.camlLiceuseDetaiLasa?SIDsEtsznp FFF4ADCAE9?B2D... 1/15/2015 BCA Watson Rice LLP Page 6 Miami Beach, Florida 2.1-QUALIFICATIONS OF PROPOSER BCA Watson Rice LLP Page 7 Miami Beach, Florida Profile of the Firm BCA Watson Rice's approximately three hundred(300)partners and staff members have served clients throughout the U.S. and in several foreign countries. Offices are located in Miami, Ft. Lauderdale, West Palm Beach, and Tallahassee, Florida;Washington, D.C.;Torrence,California;Rutherford,New Jersey;and New York, New York. BCA Watson Rice's Florida office is a registered limited liability partnership in the State of Florida. Combined Revenues of this partnership have been in excess of$6 million for each of the last two(2)years. BCA Watson Rice's Florida office is registered with the State of Florida,Department of Business and Professional Regulation,Board of Accountancy under license no.AD0003182. QUALIFICATIONS OF BCA WATSON RICE LLP UNSURPASSED REPUTATION • BCA WR has been a member of the Private Companies Practice Section of the AICPA since the inception of the program and is internationally recognized for its work in the governmental sector. We are also members of the AICPA's newly formed Governmental Audit Quality Center and Employee Benefit Quality Audit Center (The Centers). The Centers' primary purpose is to promote the importance of quality governmental and employee benefit plan audits, and the value of such audits to purchasers of governmental and employee benefit plan audit services. The Centers will also offer resources to enhance the quality of a firm's governmental and employee benefit audits. Recognition of the Firm's reputation in the government sector was probably best evident when the Florida predecessor firm was chosen by the State of Florida Department of Commerce to share its knowledge of the governmental audit process with a delegation of statutory auditors from Japan. Knowledgeable and experienced in federal,state and local government,BCA WR provides a full range of services, including auditing,accounting,business assurance and management consulting. Technical Competence BCA WR is one of the most respected firms in the fields of government auditing. We achieved this degree of prominence by giving our clients quality work at a reasonable price. Our personnel are at the cutting-edge of the profession by complying with the profession's CPE requirements including those additional requirements for governmental audits. In addition.BCA WR personnel are also active in the profession,being members of different policy-making committees at the AICPA and our state professional societies.We certify that BCA WR's Florida offices are in total compliance with the Board of Accountancy's requirements for each licensee, including maintaining Continuing Professional Education (CPE) in governmental accounting as required by the Board of Accountancy and US Government Accountability Office("GAO"). Quality is the keyword of BCA WR's operations. The firm's commitment to quality begins with its skilled and dedicated staff of people who put its ideals into practice. In addition, the national managing partner Bennie L. Hadnott, CPA, supervises the firm's Quality Control program, assuring the high performance that clients have come to expect of BCA WR. The firm is also a member of the American Institute of Certified Public Accountant's Division for CPA Firms and participates in the firm-on-firm Peer Review process, led by Engagement Partner, Ronald Thompkins.a veteran of numerous reviews. BCA Watson Rice LLP Page 8 Miami Beach, Florida Profile of the Firm (Continued) BCA Watson Rice Locations West Palm Beach,Florida Miami,Florida' Fort Lauderdale,Florida 777 S.Flagler Dr. 520 NW 165th Street Road 110 East Broward Blvd. (561)515-6055 (305)947-1638 (954)315-3863 New York New York Rutherford,New Jersey Tallahassee,Florida 5 Penn Plaza 301 Route 17 North 113 S.Monroe Street (212)447-7300 (201)460-4590 (850)201-7211 Other Locations Washington D.0 Torrance,CA Bowie,MD 2200 Pennsylvania Ave. 21250 Hawthorne Blvd. Hartford,CT Tel:(202)416-1749 Suite 520 Atlanta,GA (310)792-7001 Philadelphia,PA (')Location from which the engagement will be performed LIAISON WITH OR ACCESS TO GOVERNMENT AGENCIES With offices in Tallahassee and Washington,DC our firm is uniquely positioned to use our existing relationships to leverage access to state as well as federal government agencies on the City's behalf. It should also be noted our partners have leadership roles in our state societies, the AICPA and have served on various federal, state, and local agencies. Independence We are independent of the City as defined by generally accepted auditing standards/the U.S. General Accounting Office's Government Auditing Standards(1994 as amended in 2007). Our Firm has no personal interest. direct or indirect, in the fiscal affairs of the City government and/or any of its officers. In addition,we shall give the City written notice of any professional relationships entered into during the period of this agreement. ;License to Practice in Florida and,Continuous Service.; y` The Firm is licensed to do business in the state of Florida as a limited liability partnership, as a certified public accountancy firm under the license number AD00003182,and has requisite business occupational licenses. `Certificate of Good Standing The Firm and/or its predecessors have operated in the state of Florida since August 1, 1980.All licensed certified public accountants based in Florida are in compliance with the Florida Board of Accountancy license requirements. BCA Watson Rice LLP Page 9 Miami Beach, Florida See a copy of Firm's license is included herein. Firm membership in the American Institute of Certified Public Accountants We are a member firm of the American Institute of Certified Public Accountants Governmental Quality Audit Center, Employee Benefit Quality Audit Center, and the Division for CPA Firms, Private Companies Practice Section ("PCPS"). Members of the PCPS agree.among other things,to: • Submit to peer reviews by CPA's from member firms every three (3) years, the reports are made available to the public,and ensure that each professional staff member participates in at least 80 hours of continuing education every two (2) years (including at least 24 hours bi-annually in the area of governmental accounting and auditing). We are proud of our recent"clean opinion",which is our sixth tri-annual report. Furthermore, all CPA's practicing in our firm are members of the AICPA(for Florida CPA's), and are independent with respect to the City of Miami Beach. Professional Staff SIZE OF FIRM AND GOVERNMENTAL AUDIT STAFF STAFF LEVEL AVAILABLE TO THIS TOTAL PERSONNEL CPA'S ENGAGEMENT" Partners/Principals 2 9 9 Managers/Directors 2 17 17 Supervisors - 11 6 Senior Associates/in-charge 2 111 78 Staff 3 94 61 Consultants 1 30 - Administrative 2 18 - TOTALS 12 290 171 (')ALL PERSONNEL ARE EXCLUSIVELY DEVOTED TO THE AUDITS OF GOVERNMENTAL ENTITIES AND NON-PROFIT ORGANIZATIONS AND ALL ARE FULL TIME LOCATION OF OFFICE WHICH WILL PERFORM THE WORK The office from which all services will be rendered will be our Miami office: 520 NW 1650"Street Road,Suite 205, Miami, Florida 33169-6303. Quality Control Review Firm's Participation In AICPA-Sponsored Or Comparable Quality Control Programs Our firm has been a member firm since inception of the AICPA's Private Companies Practice section ("PCPS") and is an inaugural member of its Governmental and Employee Benefit Quality Control Centers. Members of these prestigious divisions have pledged a commitment to quality service including AICPA-sponsored peer reviews as well as Continuing Professional Education and training specific to our clientele. We have just recently completed our 2013 peer review. See copy in the appendices. BCA Watson Rice LLP Page 10 Miami Beach, Florida 2.2-QUALIFICATIONS OF PROPOSER TEAM BCA Watson Rice LLP Page 11 Miami Beach, Flo ORGANIZATION CHART BCA Watson Rice LLP Page 12 Miami Beach, Florida ENGAGEMENT PARTNER Ronald Thompkins A QUALITY ASSURANCE PARTNERS Albert Lucas I OPERATIONAL PHASE 1 FORENSICS PHASE Arnold Broussard Michael de Castro ,.. i _ Senior Manager 1 IT Senior Manager Carshena Allison Charlton Sampson IMMIMINIMP.011.1.011g .....j A' POOL OF AUDITORS/CONSULTANTS s BCA Watson Rice LLP Page 13 I Miami Beach, Florida Qualifications and Experience of Key Personnel Our structure recognizes two essential requirements for effective performance-the need for clear accountability, and the need for a single primary point of contact between us as Auditors and the City. To accomplish these objectives we provide for the following level of engagement management. Engagement Partner The Engagement Partner has overall responsibility for administration of The City's contract. He will monitor day-to-day project activities and work directly with the Engagement Manager to assure work quality,and cost and schedule adherence.Participate in all meetings with the City's financial management; Commission members. Review all reports to be issued to ensure compliance with professional standards. He also will be the'primary contact person. Engagement Manager The Engagement Manager will be responsible for the day-to-day performance of engagement team members. This includes responsibility for assuring the technical quality of the work performed, adhering to the finalized budget and schedule, and producing a quality report. Senior Associate The Senior Associate will conduct proposed engagement tasks. The Senior will lead all major tasks and have direct responsibility for staff auditor(s). The qualifications of the key personnel assigned to the engagement and their responsibilities to serve The City are summarized in the pages following. BCA Watson Rice LLP Page 14 Miami Beach, Florida Principal Supervis�o & Management Staff • Continuing Professional Education Required Under Government Auditing Standards We offer specialized training (through in-house and as well as outside providers) in industry-specific areas including Government Auditing Standard. In addition,every BCA WR staff member is monitored to ensure that he or she completes the continuing education requirements of the American Institute of Certified Public Accountants("AICPA"),as well as those required by the "Yellow Book",and individual boards of accountancies in the states in which we practice. AFFIRMATION THAT THE AUDITOR IN CHARGE MEETS THE EDUCATION REQUIREMENTS OF CHAPTER 11.45 OF THE FLORIDA STATE STATUTES. We certified that Ronald Thompkins,the proposed auditor in charge,has met the education requirements of Florida Statutes, Chapter 11.45. GOVERNMENT AUDITING EXPERIENCE OF EACH PERSON ASSIGNED AND HOW QUALITY OF STAFF WILL BE ASSURED In each of the resumes listed below, we have included their relevant government auditing experience. From a combined firm-wide pool of almost 300 professionals,the Firm has the ability and is willing to commit and maintain staffing, both number and level, to successfully conclude the audits within the time constraints outlined in the Request for Proposals.The Firm is also willing to commit to the availability of assigned partners and manager to meet with management on any material matters that could affect the financial position or results of operations. TOTAL STAFF AVAILABLE AND TOTAL ANTICIPATED PERCENT OF AUDIT WORK TO BE PERFORMED BY VARIOUS LEVELS OF STAFF • BCA Watson Rice LLP Page 15 Miami Beach, Florida Principal Supervisory & Management Staff We have selected and will commit the following key partner(s), manager and senior auditor to lead the engagement: Ronald Thompkins, CPA CGMA, the Engagement Partner and Primary Contact, has substantial experience in "hands-on" management of governmental engagements. He is a CPA and has over forty(40)years experience(CPA with 5 years+ experience). His single audit and federal grant experience relevant to this RFP include Miami-Dade County, Department of Parks, Recreation and Outdoors Spaces(The Children's Trust grant audits);Alliance for GLTBQ Youth(The Children's Trust grant audits);City of Lake Worth,Florida;City of Quincy,Florida;City of Gretna, jl Florida;City of Pembroke Pines,City of Oakland Park, Florida;City of Wilton Manors, J Florida; City of Opa-Locka, Florida; City of Lauderhill, Florida; City of Riviera Beach, Florida (City, CRA, and Utility Special District); South Florida Regional Transportation Authority; Miami- Dade Expressway Authority; Miami-Dade Housing Agency; Broward County Housing Authority, and South Florida Regional Planning Council. Ron's experience in auditing Workforce Investment Act or welfare reform systems include Opportunities and Industrialization Center of Miami-Dade County(OIC), The Children's Trust (in a joint venture capacity), Early Learning Coalition of Broward County, Comprehensive Employment & Training Act ("CETA") Programs operated by the state of Florida's Department of Labor(in a joint venture)and South Florida Employment&Training Consortium(including the former CETA programs). Ron also has extensive public finance experience. Because of his extensive credentials in the government sector he is frequently called upon as a team captain in connection with peer reviews of other CPA firms. Ron is a former member of the Board of Directors of the American Institute of Certified Public Accountants(AICPA) and a past state president of the Florida Institute of Certified Public Accountants(FICPA). ALBERT J. LUCAS, CPA, CFE, MBA, CIA, CISA, the concurring review partner, has more than 30 years of audit and business consulting experience. Mr. Lucas has 10 years of Big 4 accounting firm experience, and now manages a portfolio of A nonprofit and federal, state and local government entities. Services provided to these clients include financial and compliance audits performed in accordance with 0' Government Auditing Standards and other special reviews and services. Al is a certified fraud examiner. Michael de Castro has over 20 years (CFE Credential) of Public Accounting experience.He will direct the forensic auditing phase of the engagement. Prior to joining the firm, he was a Senior Management Analyst with the US Government Accountability Office(GAO)for 8 years. He also worked for the Federal Deposit } Insurance Corporation where he served as the Internal Compliance Officer and Contractor Oversight Audit Manager. He holds a BBA from California State V University of Dominguez Hills and is a Certified Fraud Examiner and Certified Government Financial Manager. BCA Watson Rice LLP Page 16 Miami Beach, Florida y, # He has over forty(40)years experience as a consultant including five .• years as a consultant with a"Big Four"firm.Of particular importance is his background related to the housing sector.While i employed in local government, he supervised a city's housing • program development activities, and its office of housing and community development Arnold has also provided technical assistance in the appraisal of commercial,single family and multi- family housing projects.Arnold also has a Florida real estate license. He will direct the operational phase of the engagement Charllton Sampson, PMP, CISA, CISM, CIS, will serve as our IT audit specialists. Charlton brings a solid twenty (20) year (15 with BCA) .1 background in the audit of IT systems for governmental entities of all sizes. '° 4 Florida clients Charlton has provided IT support services to include South Florida Regional Transit Authority, Broward County Housing Authority, South Florida Workforce Investment Board, City of Quincy, Florida, City of Lake Worth, Florida, City of Oakland Park, Florida, Miami-Dade Transit Authority, and Miami-Dade Transit Authority. Carshena T. Allison, CPA, MBA Carshena has eight(8)years auditing experience (including three years with a Big Four Firm). Carshena's governmental experience includes Miami-Dade County, Department of Parks, Recreation and Outdoors Spaces (The Children's Trust grant audits ;the Ci of Lake Worth. Florida; Ci of Quinc Florida: the C' of ty �y ) ty y Lake Worth,Florida;Tallahassee-Leon County Civic Center Authority;City of Miami Downtown Development Authority; Miami-Dade Expressway Authority; Federal National Mortgage Association(while with another firm); South Florida Water Management District (joint venture); Miami-Dade County Department of Solid Waste (functioned as engagement senior)(joint venture) and City of Hollywood (joint venture). She has forensic and performance audit experience as follows: Forensic audit of the Utility District of the City of Riviera Beach, Florida (Utility Special District). Carshena serves on the Executive Board of the local chapter of the Florida Institute of Certified Public Accountants. and heads our IDEA implementation project for the Florida practice group. Once fieldwork commences, the staff assigned to the City's engagement will be totally devoted to the engagement to complete it in a timely manner. BCA Watson Rice LLP Page 17 Miami Beach, Florida Availabilit of the Firm From a combined firm-wide pool of almost 300 professionals the Firm has the ability and is willing to commit and maintain staffing, both number and level, to successfully conclude the audits within the time constraints outlined in the Request for Proposals for succeeding audits. The Firm is also willing to commit to the availability of assigned partners and managers to meet with the administration and the Commission Members on any material matters that could affect the City. BCA Watson Rice LLP Page 18 Miami Beach, Florida RONALD THOMPKINS, CPA, CGMA Engagement Partner Ronald Thompkins is a Partner in BCA Watson Rice's assurance practice and has over 40 years of experience in public accounting specializing in auditing, accounting, and consulting services for government, nonprofit agencies, organizations and commercial entities. He has led complex engagements with numerous teams conducting simultaneous audits at multiple locations. Ron is the past president of the Florida Institute of CPAs, and a former member of the AICPA Board of Directors. He is currently president of Florida Memorial University's Business Advisory Committee. Experience • Engagement partner of audits of several nonprofit organizations receiving federal and state grants and contracts in accordance with generally accepted auditing standards, Government Auditing Standards, and OMB Circular A-133. Some of his nonprofit and governmental clients include: • City of Lake Worth a City of Riviera Beach (City, CRA, Utility Special District) a City of Riviera Beach (sub-contractor for Marina Project and prime for Agreed upon Procedures) • Florida A& M University(Foundation, National Alumni Association & Boosters) a University of Miami, Inc. (while with another firm) a Miami-Dade County, Department of Parks, Recreation and Outdoors Spaces (The Children's Trust grant audits) • Alliance for GLTBQ Youth (The Children's Trust grant audits) • Florida Memorial College (South African Teachers' Grant) • School Board of Broward County(Joint venture) • Miami-Dade County School Board (Joint venture) • Early Learning Coalition of Broward County • Legal Services of Greater Miami, Inc. • Bright Futures Charter School • City of Pembroke Pines, Florida (includes charter schools) • City of Oakland Park, Florida • City of Gretna, Florida • Tallahassee Leon County Civic Center Authority • Miami-Dade Expressway Authority • South Florida Regional Transportation Authority • Port of Miami Crane Management • City of Wilton Manors, Florida • Broward County Housing Authority • City of Opa-locka, Florida • City of Lauderhill, Florida BCA Watson Rice LLP Page 19 Miami Beach, Florida • City of Mid Way, Florida • Village of El-Portal • City of Tuskegee, Florida • School Board of Broward County(joint venture) Education • BA, Accounting, Howard University Certifications/Affiliations • Certified Public Accountant(Florida &Alabama) •. American Institute of Certified Public Accountants • Florida Institute of Certified Public Accountants C.P.E. • Total: Total CPE Credits 134 (107 Governmental) BCA Watson Rice LLP Page 20 Miami Beach, Florida ALBERT J. LUCAS, CPA, MBA, CIA, CISA Concurring Review Partner Albert J. Lucas, has over twenty-five years of audit and business consulting experience. He serves as engagement partner or quality control partner of financial and compliance audits of government and nonprofit clients. Albert manages audit teams that perform financial audit, internal controls and performance reviews. CERTIFICATIONS Certified Public Accountant (Washington, DC; Florida (Pending)), Certified Internal Auditor, Certified Information Systems Auditor. RELEVANT Albert's related activities include the following: EXPERIENCE a Served as Engagement Partner for the annual financial and compliance audits of the Prince George's County Housing Authority. • Served as Engagement Partner on the annual financial statement audit of Prince George's County, MD, which has nearly $5 billion in assets and$1.6 billion in revenue. He also performed the compliance audit of federal expenditures in accordance with OMB Circular A-133. • Served as Engagement Partner of the annual financial and compliance audits of the Washington Suburban Sanitary Commission WSSC), a regulated utility that provides water to over 1 million customers in the Washington.metropolitan area and operates 7 water treatment facilities. WSSC has more than $4 billion in net assets. Albert has served as partner on numerous audits of government, nonprofit, and commercial clients. Major clients serviced include Freddie Mac, Fannie Mac, Ginnie Mae, Washington Gas, Potomac Power and Electric Company, California Public Utilities Commission, the US Small Business Administration, and the District of Columbia Government. In addition to his audit responsibilities, Albert's responsibilities also include new business development, staff development, training, and office management. BACKGROUNG Lucas is a member of the American Institute of Certified Public AND EDUCATION Accountants, and a member of the Institute of Internal Auditors. Lucas graduated from Cornell University with a Bachelor of Science degree in Economics and obtained a Master's in Business Administration in Accounting and Finance from the University of Rochester. CONTINUING PROFESSIONAL EDUCATION Total CPE Credits 145 (63 Governmental) BCA Watson Rice LIP Page 21 Miami Beach, Florida MICHAEL J. DE CASTRO, CFE, CGFM PROJECT MANAGER, PERFORMANCE AUDITS/FORENSIC PHASE Michael J. de Castro, RELEVANT EXPERIENCE: CFE, CGFM • Currently serving as Engagement Partner on a litigation support Mr.de Castro,a Certified project. Watson Rice assisting a law firm in determining and Fraud Examiner is the measuring compensatory damages suffered by their clients resulting Managing Partner of BCA from representations made by,and actions taken by a Taxi Company. Watson Rice's Torrance, Served as Engagement Partner on a Los Angeles Unified School California office. He has District Office of the Inspector General fraud audit of a plumbing and over 26 years fraud/forensic, lianc ,and c, industrial supply company under contract with the school district. In financial,compliance,and response to allegations of billings for supplies that were never performance auditing received by the District, Watson Rice conducted a comprehensive experience. contract fraud audit, which identified over $6 million of fraudulent billings. The audit also uncovered significant weaknesses in the Mr.de Castro is currently procurement controls whereby the same individual was able to serving as Partner in Charge initiate a purchase order, approve the payment to the vendor, and of Watson Rice's internal sign off on the receiving document. Our audit was turned over to the audit and consulting support Los Angeles District Attorney's Office, who is planning to pursue services contracts with ten indictments against the company and school officials. separate governmental agencies. + Served as Engagement Partner on and assessment of a procurement fraud detection program for the Los Angeles City Controller's Office. Watson Rice assisted the Controller's Fraud Unit EDUCATION: in identifying specific procurement fraud vulnerabilities through a Bachelor of Business citywide fraud risk assessment, and provided the Fraud Unit with Administration,degree in specific,targeted techniques to identify strong leads for investigation. Accounting.California State � Served as Engagement Partner on a fraud audit for the Housing University at Dominguez Authority of the City of Los Angeles(HACLA)related to alleged over Hills billings made to various contractors under contract with Resident Management Corporations (RMC). A RMC is responsible for the PROFESSIONAL property management and administration of low-income housing AFFILIATIONS projects.The RMC contracts to companies to provide services such CERTIFICATIONS: as security,moving and maintenance.Outs audit identified fraudulent billings for services not provided. Our audit also identified a conflict Member of the Association of of interest relationship between a former HACLA executive and a Government Accountants consultant hired by the RMCs. Provided expert witness testimony at trial regarding the audit,which contributed to a guilty verdict against Certified Government a former HACLA executive. Financial Manager,Certified Served as Engagement Partner on a follow-up forensic audit for the Fraud Examiner City of Miami Beach Building Department related to known kickbacks given to Building Department inspectors from construction developers. Local law enforcement authorities had arrested several Building Department employees for receiving kickbacks from ' developers for bypassing the normal building inspection process, thus allowing the developer to save time and money in completing construction. Watson Rice was asked to investigate whether there may have been other construction projects and other Building Department employees involved in similar schemes. Although Watson Rice found no other schemes, we did identify significant BCA Watson Rice LLP Page 22 Miami Beach, Florida internal control weaknesses in the building permit process that could lead to opportunities for further unscrupulous behavior. Served as Engagement Partner on a Los Angeles City Controller's Office fraud audit in support of the City's civil litigation against a public relations firm hired by the Department of Water and Power(DWP).In response to allegations of intentional over billing, Watson Rice conducted a comprehensive contract fraud audit, which identified over$4 million of questionable costs billed to the DWP by the public relations firm. The audit also uncovered evidence supporting the allegations of intentional over billing. Our audit was used to support the City's civil lawsuit,which eventually resulted in the public relations firm settling the lawsuit with the City for nearly$6 million. In addition, the District Attorney's Office obtained grand jury indictments on two former employees of the public relations firm. A subsequent trial resulted in guilty verdicts. + Served as Engagement Partner on forensic audit of a refuse collection company for the City of Placentia, CA.The purpose of the audit was to 1)determine whether the franchise fee calculations and payments made to PDI were in compliance with the Agreement(are unpaid franchise fees due?), 2)determine whether PD1's residential rate increases were calculated in compliance with the Agreement,3) verify if PDI is maintaining an Equipment Purchase Fund as required by the Agreement, and 4) verify if PDI disposed of any refuse to landfills outside the contract approved area and whether PDI charged the City the proper rate. Served as Engagement Partner on an overhead cost investigative audit of a construction management contractor,Construction Control Services Corporation (CCSC), with respect to costs invoiced by CCSC to Parsons-Dillingham (PD) under a Los Angeles Metro contract. L.A.Metro was investigating PD for false billings.L.A.Metro was concerned that CCSC had included personal and non-business related costs in its overhead calculation. Our audit disclosed unallowable costs associated with condos in New York and Miami, and a DC apartment. We also identified personal costs in the overhead rates including cable TV for the company owner at his residence. Numerous other unallowable costs per FAR 31.2 were identified. The L.A. Metro was subsequently successful in receiving a monetary settlement from the contractor in an out of court settlement Served as Engagement Partner on an investigative audit of the Entertainment Industry Development Corporation (EIDC), a film permitting contractor to the City of Los Angeles. The resulting audit report was instrumental in the successful prosecution of the EDIC's former director by the Los Angeles District Attorney's Office for misuse of public funds. • Served as Engagement Partner on an investigative fraud audit for the City of Los Angeles' Community Redevelopment Agency. The resulting audit report was used by LAPD fraud investigators to pursue prosecution of the former Controller of a nonprofit organization. BCA Watson Rice LLP Page 23 Miami Beach, Florida Served as Engagement Partner on an assignment for the City of Los Angeles' Community Redevelopment Agency (CRA) to assist the District Attorney's Office in an investigation of missing furniture, fixtures and equipment owned by businesses that were relocated by the CRA for construction of Staples Center. The resulting report was used by the District Attorney's Office to decide whether to pursue prosecution. • Served as Engagement Partner on an assignment for the Compton Unified School District to provide support for a District Attorney's Office investigation into a payroll fraud scheme. Provided expert testimony at administrative hearings. Served as Engagement Partner to support litigation efforts by the City of Compton to terminate a long-term rubbish contract.The results of the audit were used to successfully terminate the contract. • Served as Engagement Partner on a forensic review of the operational and internal controls of the Ventura County Public Administrator-Public Guardian Division.The primary objectives of the review were to determine whether client assets and resources were adequately safeguarded and protected and to discover potential fraud. + Prior to joining Watson Rice„ Mr. de Castro was a Senior Management Analyst for eight years with the U.S.GAO. Mr.de Castro managed a variety of operational and financial audits of government agencies such as the Department of Defense, Veterans Administration, Social Security Administration, Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation, and the Resolution Trust Corporation. Mr. de Castro also served as the Contractor Oversight Audit Manager for RTC's California Office. Mr. de Castro was responsible for monitoring and directing CPA firm audits for all types of RTC contracts such as Asset Management. Loan Servicing, and Property Management. He conducted reviews and evaluations of RTC's asset management and disposition activities. BCA Watson Rice LLP Page 24 Miami Beach, Florida ARNOLD BROUSSARD, MBA, SENIOR CCONSULTANT-AUDITOR MANAGER, OPERATIONAL AUDITS Arnold has over (40) years of audit, managerial and business consulting experience. His experience includes a wide range of business services to clients in the government,corporate, non-profit, and philanthropic sectors. Successful projects in such diverse industries as real estate; community development; healthcare; public transportation; tourism; and, economic development demonstrate applied expertise in accounting and finance; project planning, management, and administration; organizational and operational analysis; financial analysis; business process re-engineering; and, strategic planning. CERTIFICATIONS He holds professional licences in Florida as a Real Estate Broker and as a Community Association Manager. RELEVANT Amold's related activities include the following: EXPERIENCE Served as project manager for firm's services to the City of Miami Beach P 1 9 tY Building Department operational review and forensic audit services. He has worked in auditing and consulting capacities with Arthur Andersen &Co. and BCA Watson Rice LLP; financial planning and analysis with McDermott, International; and, has performed a wide range of consulting engagements through his own firm, The Palm Beach Consulting Group, LLC, and as part of joint participation arrangements with several CPA firms. His government service includes serving as Executive Assistant to Mayor Ernest N. "Dutch" Morial of New Orleans, serving as the Secretary of the Louisiana Department of Revenue &Taxation, and serving as a cabinet member of the Governor of Louisiana. His overall experience includes work in such diverse areas as public accounting, law, management and business consulting, banking, finance, housing, health care, state and local government, offshore construction, real estate, homeowner and community association management, project development and administration, higher education, religious organizations and ministries, investment banking, and administration of not-for-profit organizations. BACKGROUND Arnold A. Broussard is a graduate of Tulane University and the AND EDUCATION Wharton School of Finance and Commerce of the University of Pennsylvania, where he received a master's degree in business administration. . BCA Watson Rice LLP Page 25 Miami Beach, Florida CHARLTON SAMPSON, PMP, CISA, CISM, CSM Information Technology/Information Security Expert Education University of the District of Columbia, Washington, DC BBA, Computer Information Systems Science Certifications: • Certified Software Manager(CSM) • Certified Information Systems Auditor(CISA) • Certified Information Security Manager(CISM) • Project Management Professional (PMP) Duties and Charlton will provide technical assistance to the audit team on Responsibilities Information Technology(IT) audit procedures related to our approach and methodology. He will ensure that the engagement complies with our stringent IT audit related quality control standards. Charlton will review the SAS 70 reports for any third- party service organizations. Experience Principal-in-Charge of Information Technology Assurance & Control • Manages a team of IT professionals (teams from two to 20 managers, senior associates and associates). Charlton assisted the Pension Benefit Guaranty Corporation (US DEPARTMENT OF STATE) in implementing management controls over their mission critical information systems. This included planning for and implementing adequate internal controls to minimize potential for waste, fraud, and mismanagement. He conducted required Control Objectives Validation and Integration for the US DEPARTMENT OF STATE's mission critical financial systems. He was responsible for producing the resulting report that includes detailed recommendations for improvements, where necessary. This engagement was in compliance with Federal regulations including FISMA, FMFIA and OMB Circular A-123, A-127 and A-130. NIST 800 Series Guidelines, GAO's FISCAM and ITIL are being used for guidance, methodology and approach. • Performed the assessment of the IT functional area for the Stratified Management and Operations Audit of FirstEnergy and the City of Lake Worth. Charlton was responsible for all of the IT assessment tasks including the company's ability to develop applications on time and within budget. FirstEnergy's BCA Watson Rice LLP Page 26 Miami Beach, Florida IT infrastructure includes several Local Area Networks (LANs), one Wide Area Network (WAN), two Data Centers, two large Mainframe Computers and internet connectivity. We utilized ISACA's CoBIT as the framework for this engagement. • Served the Millennium Challenge Corporation (MCC) as the engagement principal for a FISMA and FMFIA compliance audit of selected countries Integrated Financial Management Systems. We utilized the NIST 800 Series Guidelines and GAO FISCAM. • Managed an engagement to implement a Decision Support System for the District of Columbia's Housing Authority. This project included the scheduling and performing the review of approximately 10K physical files and preparing them for conversion. In addition, the project team conducted reengineering of the current work-flow to effectively utilize suitable IT. • Served as Project Manager for the City of Norfolk, Department of Utilities engagement. This engagement involved reengineering their Customer Service and information systems operations using "best Practices" including CoBIT. • Served the Department of Homeland Security as the 1T/IS Subject Matter Expert for an External Peer Review of selected IT audits. We utilized NIST 800 Series Guidelines and GAO' FISCAM to comply with Federal Regulations including FISMA and FMFIA. • Assisted the AARP in establishing an Internet presence to allow its members to renew their membership and applicants to apply on-line using a credit card. He ensured the optimum design of the site to ensure security and integrity. • Completed an IT audit for the Prince George's County Public School. He was responsible for auditing the financial management systems to determine whether or not the financial auditors can rely on the financial statements produced by the system. Collins Consulting Group, Fairfax Virginia Director, Information Systems Security&Audit • Mr. Sampson was responsible for directing the day-to-day efforts of 11 IT professionals in providing information systems BCA Watson Rice LLP Page 27 Miami Beach, Florida risk management services to the Federal Deposit Insurance Corporation. He managed the security programs encompassing security controls, access control, IT auditing/monitoring, program and policy development, and security personnel coordination. He also provided professional expertise to the FDIC in their effort to secure their information systems resources,which included a large IBM mainframe, a Wide Area Network (WAN), several LANs (Windows NT) and several Internet Web Pages. Mr. Sampson provided technical management of the team and the production of all deliverables. He was also responsible for progress reporting to the client. In addition, he managed an IT Security review for the Department of State. He was responsible for conducting the audit work and producing the audit report. Held various IT/IS Audit and Project Management Positions for the following companies: Williams Adley and Company,Washington, DC MCI, Arlington, VA Perpetual Savings Bank, F.S.B., Alexandria, VA Years of 20 Experience Achievements Achievements include client satisfaction and opportunities for improvement in clients' information systems. Awarded follow-on or new contracts as a result of the quality of services provided. BCA Watson Rice LLP Page 28 Miami Beach, Florida CARSHENA T. ALLISON, CPA, MBA Audit Manager Ms. Allison, a manager in the assurance practice of BCA Watson Rice, has more than 7 years of audit experience (including 4 years "Big 4"). She directs and manages clients primarily in the client service areas of the Not-for-Profit and State and Local Government Sector market. She is a remarkably gifted and knowledgeable Auditor with substantial background in carrying out an independent appraisal of the effectiveness of the policies, procedures and standards by which organization's financial, physical and information resources are managed. Ms. Allison has extensive experience in financial audits, operations and reporting; process re-engineering and internal control reviews. Experience Performed financial statement and compliance audits of government governmental entities, and non profits. Related experience includes Miami-Dade County, Department of Parks,Recreation and Outdoors Spaces (The Children's Trust grant audits); Audits of Florida A&M University Foundation and the Coulter Foundation (while with a Big Four Firm). Single audit experience includes: City of lake Worth, Florida, South Florida Regional Transit Authority, Early Learning Coalition of Broward County, School Board of Broward, South Florida Workforce, City of Lake Worth, City of Riviera Beach, Miami-Dade Expressway Authority, and Miami Downtown Development Authority. Education Master of Business Administration, Florida State University Bachelors in Accounting, Florida A & M University Certifications/Affiliations Certified Public Accountant-Florida American Institute of Certified Public Accountants-Member Florida Institute of Certified Public Accountants.—Vice Chair local chapter C.P.E. Total: 125 (80 Governmental) RCA Watson Rice LLP Page 29 Miami Beach, Florida RELATED EXPERIENCE BCA Watson Rice LLP Page 30 Miami Beach, Florida SIMILAR PROJECTS, > Study/Forensic Audit of the City of Miam Beach, Florida's Building &Zoning Department o Internal audit/Forensic Audit of the Utility District of Rivera Beach, Florida ✓ Forensic Audit of the Court House Center Parking Garage for Miami Parking Authority r Conducted a review of the City of Rivera Beach Marina's internal controls, examined significant account balances related to revenues and inventory cost controls, and evaluated the adequacy of the Marina's financial accounting and management reporting systems • Review of the Finance Department for the Miami-Dade Aviation Department Management Audit of Broward County, Florida's Human Rights Division Evaluation of the Miami-Dade County Water and Sewer Department's Water Supply Options and Consideration to Privatize the City of Opa-Locka's Public Works Department > Miami-Dade Transit Authority, Para-Transit Services, Customer Satisfaction Survey Review of Efficiency and Effectiveness of Internal Audit Function of Greater Southeast Community Hospital Foundation, Inc. Forensic Audit of the Entertainment Industry Development Corporation Forensic Audit of the Oakwood Deposit Bank Company for the Federal Deposit Insurance Corporation ✓ Performance Audit of Wicomico County, Maryland • Performance Audit of Prince George County School District Performance Audit of San Diego County • Fraud/Forensic Audit for the Community Redevelopment Agency of Los Angeles o D.C. Department of Employment Services Fraud Audit Litigation Support for the City of L.A. Community Redevelopment Agency • Payroll Fraud Audit for the Compton Unified School District Fraud Audit for the Los Angeles City Auditor-Controller • City of Compton Litigation Support in Connection With its Rubbish Contract • Los Angeles County Metropolitan Transportation Authority Overhead Cost Audit Forensic Accounting Audit for the County of San Diego • Fraud Audit of the Public Administrator,Administrator-Public Guardian Division for Ventura County • Information Technology Forensic Audit for the Housing Authority of the City of Los Angeles > Fraud Audit for the Housing Authority of the City of Los Angeles CLOSING BCA Watson Rice brings together the expertise of a national firm which will be able to share with the City best practices from a national perspective with the attentiveness of a local firm. BCA Watson Rice LLP Page 31 Miami Beach, Florida PROPOSED SERVICES The purpose of this solicitation is to select a firm to provide: Internal financial audits Internal operational audits Forensic audits In the sections below we describe our firm-wide experience providing these services. As part of these services the firm will develop work programs and submit findings to the Administration. BCA Watson Rice LLP Page 32 Miami Beach, Florida Firm's Experience With Governmental Clients with Revenues in Excess of $80. Million and Population in excess.of 50,000 Client• Approximate Size Type of Service Provided South Florida Regional Transit $615 million in assets Financial statement audits Authority $86 million n revenue Miami-Dade Expressway Authority $1.4 billion in assets Financial statement audits $113 million in revenues City of Lake Worth, Florida $317 million in assets Financial statement audits $113 million Miami-Dade Aviation Department $904 million in revenues Review of finance department Broward County Housing Authority $122 million in assets Financial statement audits $90 million in revenues City of Miami Beach $499 million in revenues Study/Foensic Audit of Building&Zoning Department City of Pembroke Pines, Florida $784 million in assets Financial statement audits $151 million in revenues BCA Watson Rice LLP Page 33 Miami Beach, Florida Client Approximate Size . Type of Service Provided. D.C.Water and Sewer Authority $3 billion in assets Financial statement audits $320 million in operating revenues Washington Suburban Sanitation $4.1 billion in capital Financial statement audits Commission assets $500 million in revenues Prince George's County, Maryland $3.4 billion in assets Financial statement audits $2 billion operating budget D.C.Government $5 billion in expenditures Financial statement audits D.C. Housing Finance Agency $1.3 billion in assets Financial statement audits $60 million in operating revenues District of Columbia Lottery and $300 million in operating Financial statement audits Charitable Games Control Board revenues Baltimore City Public School $1.1 billion in operating Financial statement audits System budget South Coast Air Quality $497 million in assets Financial statement audits Management District Los Angeles County Metropolitan $1.41 billion in revenues Financial and compliance Transportation Authority (Propositions A and C combined) audits Los Angeles Unified School $9 billion operating budget Internal audit services District City of Los Angeles $8 billion operating budget Internal audit services • Controller's Office • Community Redevelopment Agency • Community Development Department • Housing Authority Los Angeles County Auditor- $12 billion operating Internal audit services Controller budget Southern California Regional Rail $500 million operating Internal audit services Authority budget Orange County Transportation $2 billion operating budget Internal audit services Authority Riverside County Transportation $1 billion operating budget Internal audit services Authority County of Ventura, CA $6 billion operating budget Internal audit services BCA Watson Rice LLP Page 34 Miami Beach, Florida SIMILAR PAST PROJECT DESCRIPTIONS Litigation Support for Fraud,Intentional Misrepresentation/Fraudulent Inducement Case Description of Project and Services Provided: BCA Watson Rice LLP is currently assisting a law firm in determining and measuring compensatory damages suffered by their clients resulting from representations made by, and actions taken by a Taxi Company.The damages being claimed include actuals costs of vehicles/taxis,taxi eouipment, and taxi permits purchased based on false promises made by the defendant taxi company.We are also estimating future earnings lost as a result of false promises made by the defendant taxi company.Watson Rice will be providing documentation to support the claimed costs and lost earnings and will provide,as needed expert testimony during pending arbitration hearings. Forensic Audit Services—Government of the US Virgin Islands Description of Project and Services Provided: BCA Watson Rice LLP recently provided forensic auditing services for the Employees'Retirement System of the Government of the Virgin Islands relating to Carambola Northwest,LLC(Renaissance Carambola Beach Resort and Spa).We were contracted to provide forensic audit services and also to report on the internal controls in place to safeguard assets.We reviewed all financial transactions from December 2009 to December 2012.We used a risk based approach,and a statistical tool to identify unusual and high risk transactions.Our approach involved identifying related party transactions, identifying those transactions that were non-recurring, executed over the weekend,executed at odd hours of the day,duplicate check numbers, payments made to employees after termination, and unusually high volumes of transactions with specific vendors. • Contractor Fraud for the Los Angeles Unified School'District Description of Project and Services Provided: BCA Watson Rice LLP (Watson Rice)was engaged by the Los Angeles Unified School District's Office of the Inspector General to conduct a fraud audit of a plumbing and industrial supply company under contract with the District. to response to allegations of billings for supplies that were never received by, the District,Watson Rice conducted a comprehensive contract fraud audit,which identified over$6 million of fraudulent billings. The audit also uncovered significant weaknesses in the procurement controls whereby the same individual was able to initiate a purchase order, approve the payment to the vendor, and sign off on the receiving document. Our audit was turned over to the District Attorney's Office,who was planning to pursue indictments against the company., BCA Watson Rice LLP Page 35 Miami Beach, Florida Forensic Audit-of the Building Department-City of Miami Beach Description of Project and Services Provided: BCA Watson Rice LLP(Watson Rice)conducted a follow-up forensic audit for the City of Miami Beach Building Department related to known kickbacks given to Building Department inspectors from construction developers. Local law enforcement authorities had arrested several Building Department employees for receiving kickbacks from developers for bypassing the normal building inspection process, thus allowing the developer to save time and money in completing construction.Watson Rice was asked to investigate whether there may have been other construction projects and other Building Department employees involved in similar schemes.Although Watson Rice found no other schemes,we did identify significant internal control weaknesses in the building permit process that could lead to opportunities for unscrupulous behavior. Forensic Audit of the Entertainment Industry Development Corporation. Description of Project and Services Provided: BCA Watson Rice LLP (Watson Rice) conducted an investigative audit of the Entertainment Industry Development Corporation (EIDC), a contractor to the City of Los Angeles. The City and County of Los Angeles created the EIDC to promote film production in Los Angeles and to streamline the issuance of film permits to production companies. The EIDC's former director was under investigation by the Los Angeles District Attorney's Office for alleged misuse of public funds.Watson Rice was engaged by the City of Los Angeles Auditor-Controller in determining whether public funds received by the EIDC were properly accounted for and expended over a 3-year period. Watson Rice's audit uncovered many instances of lavish spending that was not connected to the purpose,mission and programs of EIDC.The District Attorney's Office successfully prosecuted the former director. in part,due to our audit report. In addition,our audit report was used to enhance internal controls and improve corporate governance of the EIDC to prevent such an occurrence from happening again. Overhead Fraud Audit,forthe Los,Angeles,County Metropolitan Transportation Authority Description of Project and Services Provided: BCA Watson Rice LLP (Watson Rice) was engaged by the Los Angeles Metropolitan Transportation Authority(Metro)to conduct an overhead audit of Construction Control Services Corporation(CCSC)with respect to costs invoiced by CCSC to Parsons-Dillingham (PD) under a Metro Contract Metro was investigating PD for false billings. Metro was concerned that CCRS had included personal and non- business related costs in its overhead calculation. Our audit disclosed unallowable costs associated with condos in New York and Miami,and a DC apartment. We also identified personal costs in the overhead rates including cable TV for the company owner at his residence. Numerous other unallowable costs per FAR 31.2 were identified. Metro was subsequently successful in receiving monetary damages from the contractor in an out of court settlement. BCA Watson Rice LLP Page 36 Miami Beach, Florida Forensic Audit of the Oakwood Deposit . 1� - - Bank Company for the Federal Deposit Insurance corporationYFOIC). • .. ,•• Description of Project and Services Provided: A BCA Watson Rice LLP(Watson Rice)team of former bank examiners and forensic auditor examined bank records and recreated transactions to assess the extent of fraud perpetrated at Oakwood Bank in Texas. The bank went into receivership to the FDIC when it was discovered that a senior bank executive perpetrated a massive and pervasive fraud costing taxpayers millions of dollars. The FBI also discovered a check kiting scheme operating at Oakwood.Watson Rice's responsibilities included investigating the misappropriation of funds, reviewing financial transactions. tracing funds. compiling reports and work summaries,and reviewing and analvzina documents pertaining to the bank's failure.Watson Rice traced more than 40,000 transactions that comprised the kiting scheme.The FBI used Watson Rice's report to, seek prosecution of the former senior bank executive. •FraudAudit for the.Housingc Authority of the°.City.of Los Angeles Description of Project and Services Provided: BCA Watson Rice LLP(Watson Rice)was engaged by the Housing Authority of the City of Los Angeles IHACLA)to conduct a fraud audit of alleged over billings made to various contractors under contract with Resident Management Corporations(RMC). An RMC is responsible for the property management and administration of low-income housing projects. RMC's contract with companies to provide services such as security,moving and maintenance.Our audit identified fraudulent billings from contractors for services not provided. Our audit also identified a conflict of interest in a relationship between a former HACLA executive and a consultant hired by the RMCs. Watson Rice's partner subsequently provided expert testimony at trial regarding the audit, which contributed to a guilty verdict against the former HACLA executive. Forensic Audit ofFranchise Agreement for the;City of Placentia , Description of Project and Services Provided: BCA Watson Rice LLP (Watson Rice) completed a forensic audit of Placentia Disposal, a Division of Taormina Industries, Inc. under the Amendment and Restated Agreement for Refuse Collection dated June 15, 1988 (the"Agreement") between the City of Placentia (the City) and Placentia Disposal (P01). The purpose of the audit was to 1)determine whether the franchise fee calculations and payments made, to PDI were in com'fiance with the A.reement were -I. franchi - f--s due? 2 determine whether PDI's residential rate increases were calculated in compliance with the Agreement.3)verify whether PDI was maintaining an Equipment Purchase Fund as required by the Agreement,and 4)verify whether PDI disposed of any refuse to landfills outside the contract approved area and whether PDI charged the City the proper rate. BCA Watson Rice LLP Page 37 Miami Beach, Florida tyv ud Risk Assessment for the Cit y ts An g eles 0 fffce of the.Controller Description of Project and Services Provided: BCA Watson Rice LLP(Watson Rice)was engaged by the Los Angeles City Controller's office to assist the Controller's Fraud Unit in identifying specific procurement fraud vulnerabilities through a citywide fraud risk assessment, and provide the Fraud Unit with specific, targeted techniques to identify strong leads for investigation. With the input of the City Controller's staff, we selected the top 10 City departments with the most expenditures between July 1, 2008 and June 30, 2009 and 2 smaller departments as part of our analysis. We interviewed key officials at each of the departments selected and using data mining techniques,we analyzed electronic data for payments for the 12 departments to identify anomalies and suspicious transactions that could indicate the possibility of fraud, waste or abuse. Based on our review of City documents, information provided during interviews, data analysis results, best practices of similar organizations, and our team's collective extensive background and experience we identified potential fraud risks in the areas listed below and made recommendations to improve control weaknesses: • Accounts payable process • Purchasing process • Warehouse operations • Inventory • Duplicate payments • Information management(FMIS and SMS) • Blanket Purchase Orders • Bid-rigging, collusive bidding,and bid rotation •> F • .F Distrfct'of Columbia.Depart Ment;of.Employment Services Fraud Audit' ' Description of Project and Services Provided: BCA Watson Rice LLP (Watson Rice) performed a fraud audit of the unemployment insurance program of the DC Department of Employment Services (DOES). DOES management was concerned that unemployment checks may have gone to those ineligible to receive unemployment benefits and that employer tax refunds may have been diverted for personal use by DOES employees. We conducted a comprehensive review of the processes and controls surrounding payment of checks,bank accounts,the administrative fund,and tax receipts and payments. BCA Watson Rice LLP Page 38 Miami Beach, Florida Payroll Fraud Audit Description of Project and Services Provided: BCA Watson Rice LLP (Watson Rice) was engaged by the Compton Unified School District to support a District Attorney investigation into a payroll fraud scheme that was uncovered by Watson Rice. Watson Rice was reviewing an after school program funded by federal funds and found that the Director of the program was hiring ghost employees and having employees provide kickbacks to him from their paychecks. Watson Rice collected falsified signatures on timesheets and testimonial evidence from employees about providing kickbacks to the Director. Watson Rice's working papers were turned over to the District Attorney and used to prosecute the wrongdoers. Watson Rice also provided expert testimony at the administrative hearings. City of Compton—Litigation Support Description of Project and Services Provided: BCA Watson Rice LLP(Watson Rice)was engaged by the City of Compton to support its litigation efforts to terminate a 20-year rubbish contract awarded to a company under a sole source non- competitive basis. Our audit of the rubbish contract found that the company was illegally collecting garbage from neighboring cities. We also found that the company may have been providing monetary kickbacks to former City Council members. The results of our audit were used to terminate the contract with the rubbish company. Investigative/Fraud Audit for the Community Redevelopment Agency of Los Angeles Description of Project and Services Provided: BCA Watson Rice LLP (Watson Rice) was engaged by the City of Los Angeles' Community Redevelopment Agency to investigate how a former Controller at a nonprofit organization was able to embezzle approximately$450,000 over a 2-3 year period. Watson Rice determined that the Controller, was able to circumvent internal controls by handling the responsibilities of receiving and recording cash and checks, and making bank deposits. The former Controller was skimming cash and replacing the cash with checks.Watson Rice recommended improvements to segregation of duties and management review of daihl cash and checks received. The LAPD's fraud investigative unit used our report to seek prosecution of the former Controller,who fled the U.S.to escape prosecution. BCA Watson Rice LLP Page 39 Miami Beach, Florida •Contractor Fraud Audit for the Los Angeles Crty..Auditor-Controller . Description of Project and Services Provided: BCA Watson Rice LLP(Watson Rice)was engaged by the Los Angeles City Controller's Office to conduct an audit in support of the City's civil litigation against a public relations firm hired by the Department of Water and Power(DWP).In response to allegations of intentional over billing.Watson Rice conducted a comprehensive contract fraud audit, which identified over$4 million of questionable costs billed to the, DWP by the public relations firm. The audit also uncovered evidence supporting the allegations of intentional over billing.Our audit was used to support the City's civil lawsuit,which eventually resulted in the public relations firm settling the lawsuit with the City for nearly $6 million. In addition. the District, Attorney's Office received grand iury indictments on two former employees of the public relations firm. A subsequent trial resulted in guilty verdicts. Y 1_ IT Forensic,.General Controls&:Security Assessment Description of Project and Services Provided: BCA Watson Rice LLP(Watson Rice)was engaged by the City of Quincy, Florida to perform a Financial and IT Forensic assessment,along with a general controls review and security evaluation of the City's information technology(IT)enterprise environment. The scope of the assessment included extensive data analysis of the City's financial data to determine whether there was any potential misuse,fraud or abuse of City funds.Watson Rice also performed an enterprise IT assessment in the following areas: 4. IT governance. :4 Data security; 4 Data integrity: 4 Access controls;and :4 Overall financial transactions. Our Forensic work included detailed analysis of the City's financial data for inappropriate transactions, incorrect vendor data and disbursement. Based on data analysis, Watson Rice was able to identify areas of significant improvement necessary for the City's Financial Management System. Finally,Watson Rice performed a full vulnerability assessment of the City's environment and critical servers, identifying potential vulnerabilities, which can otherwise place the City's infrastructure at risk of compromise or failure. BCA Watson Rice LLP Page 40 Miami Beach, Florida Internal Audit services to Local Government (a) Client: City of Riviera Beach, Florida (b) Project Description: Provide the City on-going internal audit services including a management audit of its Utility Special District and Disposal fee audit for Waste Management to assist the procurement department with a current RFQ. (c) Role in Project Prime contractor. (d) Description of Methodologies and Tools Used: Using our standard audit methodologies plus sub-contracting with an engineering firm for the Utility Special District audit. (e) Description of the Outcome: The Utility Special District audit results were used to identify several opportunities for the District to improve its operations; and the Disposal fee audit results were used by the City's procurement department to assist it developing an RFQ for waste disposal services. Disposal Fee Rate Analysis (a) Client: City of Oakland Park, Florida (b) Project Description: Reviewed an analysis prepared by the City to assist the resource Recovery Board to offer to its current waste disposal company under contract to adjust its disposal fees. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: The existing rate structure was reviewed and analyzed; variables and their relationships, to be considered in developing rates, were identified; assumptions were documented; unknown data was identified; and the City's computations validated. (e) Description of the Outcome: BCA Watson Rice LLP Page 41 Miami Beach, Florida A pro-forma analysis was developed as a result of the process, and was used to assist the City in its recommendation to the RRB. Rate changes are being considered by the RBB as a result of the analysis. Evaluation of the City's Water Supply Options and Consideration to Privatize the Public Works Department (a) Client: City of Opa-locka, Florida (b) Project Description: • Analyzed the City's options to provide potable water to its customers. • Analyzed the cost proposal submitted by a private contractor for the operation of the City's public works function, with special emphasis on the construction of a new water plant or the substantial renovation of the City's existing, non- operational water plant. • Developed a cost/benefit analysis of privatization compared to the City's continued operation of the public works function,with special emphasis on the operation of the water plant. • Made a preliminary assessment of the City's ability to support a bond issue to construct a new water plant or substantially renovate the existing, non- operational water plant. • Identified the costs involved in operating water plant facilities in municipalities comparable to the City. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: Water treatment options were identified and financial models representing the relative cost of each were developed, including the cost of continuing to purchase water from the County. The models were used to project system revenues and expenses, and to perform sensitivity analyses on the revenue components of the operation. For the purpose of comparison, key-operating data was obtained from comparable water treatment facilities in the area. The proposal to privatize the operations of the City's public works department was reviewed, in detail, and analyzed to determine that it was adequate to protect the City's interests. BCA Watson Rice LLP Page 42 Miami Beach, Florida (e) Description of the Outcome: Project results discussed with City management which decided matter needs further study. Water and Sanitary Sewer System Rate Study and Analysis (a) Client: City of Opa-locka, Florida (b) Project Description: Assisted the City in developing a financial model of its water and sanitary sewer system rate structure whereby residential and commercial rates could be adjusted independently to yield revenue outcomes that were equal to or greater than existing revenues. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: The existing rate structure was reviewed and analyzed; variables and their relationships, to be considered in developing rates, were identified; financial model assumptions were documented; unknown data was developed or estimated using known data relationships; models were developed, tested and the results validated, with the assistance of City management. Models incorporated the ability to perform sensitivity analyses. (e) Description of the Outcome: The financial models, developed as a result of the process, were used to assist the City in developing its new water and sanitary sewer system rate structure. Rate changes were enacted by the City as a result of the study. Evaluation of the City's Water Supply Options and Consideration to Privatize the Public Works Department (a) Client: City of Opa-locka, Florida (b) Project Description: • Analyzed the City's options to provide potable water to its customers. • Analyzed the cost proposal submitted by a private contractor for the operation of the City's public works function, with special emphasis on the construction BCA Watson Rice LLP Page 43 Miami Beach, Florida of a new water plant or the substantial renovation of the City's existing, non- operational water plant. • Developed a cost/benefit analysis of privatization compared to the City's continued operation of the public works function,with special emphasis on the operation of the water plant. • Made a preliminary assessment of the City's ability to support a bond issue to construct a new water plant or substantially renovate the existing, non- operational water plant. • Identified the costs involved in operating water plant facilities in municipalities comparable to the City. (c) Role in Project Prime contractor. (d) Description of Methodologies and Tools Used: Water treatment options were identified and financial models representing the relative cost of each were developed, including the cost of continuing to purchase water from the County. The models were used to project system revenues and expenses, and to perform sensitivity analyses on the revenue components of the operation. For the purpose of comparison, key-operating data was obtained from comparable water treatment facilities in the area. The proposal to privatize the operations of the City's public works department was reviewed, in detail, and analyzed to determine that it was adequate to protect the City's interests. (e) Description of the Outcome: Project results discussed with City management which decided matter needs further study. Water and Sanitary Sewer System Rate Study and Analysis (a) Client: City of Opa-locka, Florida (b) Project Description: Assisted the City in developing a financial model of its water and sanitary sewer system rate structure whereby residential and commercial rates could be adjusted independently to yield revenue outcomes that were equal to or greater than existing revenues. BCA Watson Rice LLP Page 44 I Miami Beach, Florida (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: The existing rate structure was reviewed and analyzed; variables and their relationships, to be considered in developing rates, were identified; financial model assumptions were documented; unknown data was developed or estimated using known data relationships; models were developed, tested and the results validated, with the assistance of City management. Models incorporated the ability to perform sensitivity analyses. (e) Description of the Outcome: The financial models, developed as a result of the process, were used to assist the City in developing its new water and sanitary sewer system rate structure. Rate changes were enacted by the City as a result of the study. Evaluation of the City's Water Supply Options and Consideration to Privatize the Public Works Department (a) Client: City of Opa-locka, Florida (b) Project Description: • Analyzed the City's options to provide potable water to its customers. • Analyzed the cost proposal submitted by a private contractor for the operation of the City's public works function, with special emphasis on the construction of a new water plant or the substantial renovation of the City's existing, non- operational water plant. • Developed a cost/benefit analysis of privatization compared to the City's continued operation of the public works function,with special emphasis on the operation of the water plant. • Made a preliminary assessment of the City's ability to support a bond issue to construct a new water plant or substantially renovate the existing, non- operational water plant. • Identified the costs involved in operating water plant facilities in municipalities comparable to the City. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: BCA Watson Rice LLP Page 45 Miami Beach, Florida Water treatment options were identified and financial models representing the relative cost of each were developed, including the cost of continuing to purchase water from the County. The models were used to project system revenues and expenses, and to perform sensitivity analyses on the revenue components of the operation. For the purpose of comparison, key-operating data was obtained from comparable water treatment facilities in the area. The proposal to privatize the operations of the City's public works department was reviewed, in detail, and analyzed to determine that it was adequate to protect the City's interests. (e) Description of the Outcome: Project results discussed with City management which decided matter needs further study. Analysis of Commercial Waste Disposal Franchise Fee Proposals (a) Client: City of Opa-locka, Florida (b) Project Description: Analyze proposal from commercial solid waste disposal service to increase the franchise fee paid to the City and pass-on cost reductions to customers. Document costs/benefits and identify other considerations. (c) Role in Project: Prime contractor. (f) Description of Methodologies and Tools Used: Analyze fee components,compute statistical relationships, identify and document costs and benefits, and make recommendations to City management, as appropriate. (g) Description of the Outcome: Presented detailed analysis of the information identified in the proposal, including the indirect impact on City operations and management of the disposal service. Also, recommendations were made to City management on ways to improve the financial and operating relationship between the City and the waste disposal operator. BCA Watson Rice LLP Page 46 Miami Beach, Florida Watson Island, Botanical Garden Attraction Project (a) Client: City of Miami, Florida (b) Project Description: The City of Miami desired to engage a consulting team in the evaluation of Unified Development Proposals (UDPs) for the Watson Island, Botanical Garden Attraction Project. Specifically, the consulting team would assist the City in the following. • Assess the financial viability of the proposing entities. • Assess the viability of the financial strategies, sources and structure. • Assess the short range and long-range economic and fiscal return to the City. • Assess the market analysis. • Assess the economic feasibility of the proposed development. • Assess the financial viability of the management/operational plan. • Report on the findings to the Review Committee. (c) Role in Project: Sub-contractor to Sanson, Klein, Jacomino &Company (d) Description of Methodologies and Tools Used: Site specific information was gathered. The general market and economic trends of Dade County and the immediate area were analyzed. The financial implications of each proposal were assessed, in detail, and the financial projections analyzed. Finally, the projects were analyzed on their individual merits, given project costs, revenue and expense projections, ability to service debt, etc. (e) Description of the Outcome: City was able to renegotiate certain terms and conditions with the developer, which increased the return to the City. BCA Watson Rice LLP Page 47 Miami Beach, Florida Financial Accounting System Review (a) Client: Miami-Dade County Water and Sewer Department (WASD) (b) Project Description: Perform a review of the general accounting, capital projects, and fixed assets areas, and provide recommendations for process and systems improvements in these areas. (c) Role in Project Sub-contractor. (d) Description of Methodologies and Tools Used: The prime contractor used a propriety system (4Front) as the basis for its approach to accomplishing the project's objectives. The 4Front methodology was designed as a basic systems design tool to address every phase of the systems development life cycle. Using the system would ensure that new information systems would be tied to the department's business goals and objectives; long- term information stability would be established and tailored to the department's specific needs; redundant information and duplication of effort would be eliminated;productivity would be improved; and,when needed, information would be shared. The system development methodology required significant input and participation from County management and staff. (e) Description of the Outcome: Major improvements in WASD's systems technology. Improvements have increased efficiency and timeliness of management information. South Florida Cogeneration Associates Contract Compliance Review (a) Client: Miami-Dade County (b) Project Description: Examination of the records and transactions pertaining to the cogeneration plant installed by Thermo-Electron in Metropolitan Dade County. The examination covered the period December 1, 1986 to September 30, 1992. The examination included all agreements or transactions with third parties; the legitimacy of legal expenditures charged to operations was to be verified,along with initial plant costs and present valves; any discrepancies between South Florida Cogeneration Associates (SFCA) and the County were to be verified; unusual capital expenditures and alleged operation expenses would be investigated; any liability as a result of not meeting efficiency standards would be verified; the audit was to BCA Watson Rice LLP Page 48 Miami Beach, Florida report on transactions or obligations contracted by SFCA and other agencies; and, other project operations would be reviewed, if appropriate. (c) Role in Project: Sub-contractor. (d) Description of Methodologies and Tools Used: The audit team would receive an overview of the systems and procedures. County personnel would identify areas of concern and disputed areas. An audit would be conducted according to agreed-upon procedures. (e) Description of the Outcome: Findings were submitted to County and used as basis for further negotiations/resolution of disputed payments amongst the parties. The Impact of Professional Sports Teams and Sports Facilities on Miami-Dade County Tourism. (a) Client: Miami-Dade County, Florida (b) Project Description: Conducted a study to determine the importance and economic impact of professional sports and sports facilities on tourism in Dade County. (c) Role in Project: Sub-contractor (d) Description of Methodologies and Tools Used: Research reflected analyses of primary and secondary sources of information. Estimates and analyses based on economic trends and market assumptions. Observations and comments made from information provided by market analyses, internal databases, surveys,and information provided by management. (e) Description of the Outcome: • Concluded on impact of professional sports teams on overnight visitors to Dade County. • Concluded on direct economic impact on visitors who choose to visit or extend their stay in Dade County to attend professional sports team events. • Concluded on the demand to use tourist taxes to fund rofessional sports P P facilities. BCA Watson Rice LLP Page 49 Miami Beach, Florida • Concluded on Dade County's hotel tax rates and hotel tax allocations to sports facilities with regard to most of Dade County's direct competitors. • Concluded on Dade County's return on media advertising and marketing budgets with regard to its competitors. Concluded on other benefits to a community provided by professional sports teams. 1% Professional Sports Franchise Facility Tax Ten Year Revenue Forecast (a) Client: Miami-Dade County Finance Department (b) Project Description: The County planned to issue special obligation bonds which would be supported by a 1% Professional Sports Franchise Facility Tax. The County requested an independent, third party to assemble and opine on a ten-year forecast of revenue to be generated from the tax. (c) Role in Project: Sub-contractor (d) Description of Methodologies and Tools,Used: Historical tax revenues based on collections of accommodations taxes would be used to analyze trends. The collection process was analyzed to understand and document the collection process. The historical and future supply of entities subject to the tax was analyzed. Economic,demographic,and tourism trends and forecasts were analyzed and documented. Based on the above,the forecast was generated. (e) Description of the Outcome: Projections were used as a basis to assist County management in decision to issue additional bond financing. BCA Watson Rice LLP Page 50 Miami Beach, Florida Strategies and Options Pertaining to the Miami Heat and Future Use of the Miami Arena (a) Client: Miami-Dade County, Florida (b) Project Description: The County requested a study to develop strategies and options for keeping a National Basketball Association (NBA) franchise in Miami, as well as to analyze the potential future of the Miami Arena. (c) Role in Project: Sub-contractor (d) Description of Methodologies and Tools Used: Interviews and work sessions with representatives of Dade County; and, interviews with representatives of the Miami Heat,the Miami Sports and Exhibition Housing Authority, Leisure Management of Miami, and Ellerbe Becket officials were conducted. Existing leases at the Miami Arena as well as other NBA leases were reviewed. Competitive and comparable facilities were analyzed. Patron surveys were conducted at Arena events. Site visits were made to potential sites, and data from previous studies was reviewed. Other secondary information sources were accessed, along with KPMG's internal database. (e) Description of the Outcome: Demographic/economic characteristics of the Metropolitan Dade County region were developed. Data on characteristics of NBA venues and their markets, comparable facilities, planned new venues, NBA attendance over the last five years, NBA average ticket prices, and an analysis of comparative facilities at selected NBA venues was presented. Also, alternate sites in the County were analyzed. Howard University • Provided more than 40,000 hours of accounting and consulting services over the last 18 months. • Focus: audit readiness, grant compliance, and assessment of internal controls. • Accomplishments to date: o Performed a comprehensive review of grant management system to improve its efficiency in grants reporting. o Resulted in the redesign of the gathering data and report preparation process. o Prepared and filed past due reports and cleared 90 percent of the backlog. o Reduced time to prepare, review, and approve reports from an average of 10 days to 3. BCA Watson Rice LLP Page 51 Miami Beach, Florida City of Opa-Locka • Cost Allocation Plan • Accounting Manual • Franchise Tax Survey City of Miami • Evaluated unified development proposal for several developers. (Joint Venture) • Developed a computerized bookkeeping system for the housing department. Miami-Dade County-DBED • Feasibility study of African American Tourist Site. • Jointly Conducted a Feasibility Study for the Non Recurring Hurricane Andrew Impacts 1993-1994 Economic Development from Hurricane Andrew and Rebuilding Trust Fund. • Jointly Conducted a study to determine the feasibility of a Disabled Business Program Miami-Dade County(Joint Venture) • Performed a contract compliance audit of the cogeneration plant operation and the accounting done by the General Services Administration. • Strategies and Options Study Pertaining to the Miami Heat and Future Use of the Miami Arena. Miami Sport Exhibition Housing Authority (Joint Venture) • Strategies and Options Study Pertaining to the Miami Heat and Future Use of the Miami Arena. • Our segment of this joint venture included the sole development of the Tourist/Convention- Development tax audit procedures and reference manuals. Miami-Dade County Aviation Department(Joint Venture) • Concourse User Study BCA Watson Rice LLP Page 52 Miami Beach, Florida Miami-Dade County Aviation Department • For thirteen years provided management audit services for the County to various concessionaires at Miami International Airport (concessions included Parking concession, Fuel farm, janitorial services, restaurant, pharmacy, sundry store, Shuttle service,day care operator, baggage check room, airport hotel, McDonalds franchise, air freight vendor, game room, and ice-cream concession. Small Business Administration-Management and Technical Assistance 7(j)(1-9)and 1) (10) ▪ Performed accounting services; production, engineering, and technical assistance; feasibility studies, market analyses, and advertising; government contracts assistance; specialized assistance; financial counseling; business plan assistance; construction management assistance; loan packaging; computer programming services; data processing services; surety bond assistance and international trade services to 7(j)(1-9) and 7(j)(10) qualifiers under the Small Business Administrations Management and Technical Assistance Program. Department of Agriculture (USDA), Farmers Home Administration (FMHA) Loan Servicing and Processing Assistance • Watson & Rice reviewed small and medium size businesses and their ongoing operations and discusses management's plan to sell or liquidate businesses. We analyze and monitor the financial position of the borrower. Also we evaluate and assess the value of collateral should liquidation or resale occur. Watson & Rice makes recommendations for rescheduling the FMHA guaranteed debt. We document financial information and report our findings, conclusions and recommendations pinpointing the strengths and weaknesses of current management. In addition,we were responsible for reviewing organizations that make loans with the intent to restructure the loan, and recommend foreclosures, asset acquisition or loan write offs. Department of Transportation (DOT) Urban Mass Transportation Housing Authority (UMTA) • Watson Rice developed a manual and performed two test Certification Reviews of major transit authorities (Denver and Cleveland) for the Urban Mass Transportation Administration (UMTA). Certification Reviews are legally required to determine the extent to which a transit Housing Authority is complying with Federal government procurement regulations for third party contracting guidelines. Based on the work,UMTA now has standard procurement certification guidelines with which to review all remaining transit authorities in the country. BCA Watson Rice LLP Page 53 Miami Beach, Florida U.S. Department of Transportation (DOT). Urban Mass Transit Housing Authority (UMTA) Region V R Watson Rice has conducted audits of DOT-funded programs for local governments to assist in their capital improvements and mass transit projects. Also, we audited indirect cost proposals and cost allocation plans and conducted system surveys to determine the grantee's ability to adhere to DOT's grant requirements. Department of State (DOS), Office of Supply, Transportation and Procurement • WR conducted an internal control review of the procurement function of the Office of Supply, Transportation and Procurement of the DOS in accordance with the requirements and standards of OMB Circular A-123. We also reviewed the employment guide structure and number of positions using the Office of Personnel Management guidelines and other Federal Authority staffing criteria and analysis. Urban Mass Transportation Administration (UMTA) Transit Revenue Control and Security • WR has been engaged by UMTA to conduct a three-year study of transit revenue losses. The study focused on countermeasures to reduce and minimize revenue vulnerability, as opposed to quantifying losses. This engagement was sponsored by UMTA in response to several transit properties that requested assistance in identifying a means of tightening revenue controls and establishing formal processing procedures. The objectives of the project were to: o Investigate principal transit revenue accountability and security issues. • Identify effective countermeasures and procedures to ensure revenue accountability and security. o Develop guidelines that are adaptable to transit properties for the improvement of their revenue activities. o Test guidelines to ensure their practicality. A major feature of this project was a Steering Committee composed of 13 U.S. transit properties. The project deliverable was a guideline document, which addressed vulnerabilities within the five key steps comprising the revenue collection and control process (e.g. revenue collection, consolidation, storage, transference, counting and deposit). Also, the report outlined appropriate organizational structures, criminal detection and investigation techniques, and internal control review techniques. BCA Watson Rice LLP Page 54 Miami Beach, Florida U.S. Department of Transportation (DOT)/State of Virginia • Watson, Rice & Company developed and conducted seminar programs in construction management for more than 40 small construction companies under funding by the U.S. Department of Transportation. Also,we provided direct technical assistance to individual contractors in developing business plans and financing packages, utilizing computerized PERT/CPM network analysis techniques for project management and control and installed job-cost accounting systems. CH2M Hill/EPA, Shirley Su Director of Administration/Audit Reston VA(471-1441) • Subcontracted with Watson, Rice and Company to perform the following: O Conduct and assist in subcontractor invoice review. • Assist in performing subcontractor financial, capability reviews, accounting system reviews and cost and pricing data reviews; for procurement of subcontractors. a Assist in setting up and monitoring financial, subcontract and equipment filing system for internal/external auditors, including review of documents retrieving for cost recovery or litigation purposes. c Provide guidance and interpretation of contract requirements, government regulation and federal acquisition. • Monitoring subcontract and equipment procurement systems and functions to assure adequate compliance. o Conduct and assist in annual physical inventory for government-owned equipments. O Analyzing budget and expenditures for subcontractors, including associate firms. U.S. Authority for International Development (USAID), Financial Accounting Control System (FACS1 • Watson Rice under an indefinite quantity contract completed two task orders with AID. As a part of this engagement we reviewed the Accounting Procedures Manual being prepared for AID's Financial Accounting Control System. The review included identifying and correcting, where necessary, areas in which the manual was unclear or incomplete in order to obtain General Accounting Office approval of the system documentation. BCA Watson Rice LLP Page 55 Miami Beach, Florida U.S. Department of Housing and Urban Development (HUD), Housing Assistance Program • Watson Rice performed a process analysis of two housing assistance programs and created an inventory of approximately 7,200 projects for one of these programs. The inventory process included reconciling and determining contract obligations, budget authorities, costs to complete, control accounts and responsibility centers. We used accounting technicians to minimize the cost of this effort. U.S. Department of Energy(DOE), Energy Information Administration (EIA) • Watson Rice provided accounting and auditing support services to the Energy Information Administration (EIA), Economics and Statistics Division,for the review of the accuracy and consistency of data filed by twenty-six of the nation's largest oil companies. We developed desk level audit routines in accordance with reporting requirements. We also conducted accounting research, prepared reports for purposes of understanding and resolving reporting problems as well as providing related clerical support for processing data through the Financial Reporting System. Authority for International Development USAID/Jamaica • Performed an OMB A-123 review of the AID Jamaica Mission Controller's Education, Agriculture, and Health and Nutrition Offices. U.S. Department of Education (DOEd), Inspector General's Office • Watson Rice performed a pilot study involving the actual negotiation and final rate(s) determination of ten (10) organizations, agencies and institutions which required a new or changed provision and/or final indirect cost rate(s). In addition, provided a final report to the Department as to the actual feasibility or a non- federal accounting organization being able to effectively and efficiently negotiate and determine provision and final indirect cost rates for the Department of Education, clients by category and at what cost per category. The project was expanded to review the overhead proposals submitted by 20 state education agencies under the Medicaid program. Audit procedures included an assessment of the internal control procedures, eligibility determination and adherence to contract requirements. We performed the audits in Federal Regions III and IV. Department of State (DOS), Office of Supply,Transportation and Procurement • Watson Rice conducted an internal control review of the procurement function of the Office of Supply, Transportation and Procurement of the DOS in accordance with the requirements and standards of OMB Circular A-123. We also reviewed the employment guide structure and number of positions using the Office of Personnel Management guidelines and other Federal Authority staffing criteria and analysis. BCA Watson Rice LLP Page 56 Miami Beach, Florida Department of the Navy (DOD), Accounting and Finance Center(AFC) • Watson Rice reviewed two-selected DOD financial management and accounting systems as required in the recently issued OMB Circular A-123. Support systems were evaluated for reasonable compliance with requirements of OMB, GAO, Treasury and DOD. City of Philadelphia,Water Department • In joint effort with Black&Veatch Consulting Engineers Watson Rice performed a review of the cost accounting system of the City of Philadelphia Water Department. We evaluated existing cost accounting procedures and modifications to the existing procedures which would improve operations, administrative and management procedures, and management information systems. Department of Agriculture (USDA), Farmers Home Administration (FMHA) Loan Servicing and Processing Assistance • Watson Rice reviews small and medium size businesses and their ongoing operations and discusses management's plan to sell or liquidate businesses. We analyze and monitor the financial position of the borrower. Also we evaluate and assess the value of collateral should liquidation or resale occur. Watson Rice makes recommendations for rescheduling the FMHA guaranteed debt. We document financial information and report our findings, conclusions and recommendations pinpointing the strengths and weaknesses of current management. In addition, we are responsible for reviewing organizations that make loans with the intent to restructure the loan, and recommend foreclosures, asset acquisition or loan write offs. District of Columbia, Convention Center • Watson Rice, in a joint venture with KPMG, performed a wage and salary survey to develop rate ranges for professional and support employees of the Convention Center. We reviewed the benefit packages of several convention centers and local employers and assisted in developing an appropriate salary structure. Authority International Development(AID), Sahel Region • Watson Rice conducted a mid-term evaluation of AID's Sahel Regional Financial Management Project (SRFMP). The general purpose of this evaluation was to assess actual progress against initial project objectives, evaluate the impact of project activities on host country management improvements to examine the need (if any) for mid-course BCA Watson Rice LLP Page 57 Miami Beach, Florida changes in project elements and funding, and to determine what future financial management improvement strategies may be needed in each country and region. USAID/Malawi Assisted USAID/Malawi, at the request of the Government of Malawi, in conducting a feasibility study for improving the system for the analysis and reporting of fisheries data as well as for developing and carrying out a training program for scientific and technical staff. Miami-Dade Transit Authority, Para-Transit Services, Customer Satisfaction Survey (a) Client: Metropolitan Dade County, Florida (b) Project Description: The Miami-Dade Transit Authority(MDTA) requested that a customer satisfaction survey be conducted to determine its perceived service quality and safety; to determine client attitudes and perceptions; and, to obtain a profile of its users. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: A survey instrument was designed with the assistance of a behavioral research firm. The instrument consisted of twenty-nine service and attitude questions and six demographic characteristic questions. The survey was administered was administered by telephone to a random sample of 200 Special Transportation Services (STS) riders and 200 Medicaid riders who used the Para-Transit service within the six months prior to the survey. Persons refusing to be interviewed, not at home after four attempts, or whose numbers were identified as non-working were excluded from the sample. In addition to the telephone surveys, seventeen on-board surveys were administered to determine if there was a significant deviation from the telephone surveys. The data was analyzed using the Statistical Package for the Social Sciences (SPSSZ. (e) Description of the Outcome: The Para-Transit Services survey yielded useful level of satisfaction information to the MDTA, as well as feedback on reservations and arrangements for pick-ups, pick-up and arrival timeliness,vehicle condition information, service dependency, and demographic characteristics. BCA Watson Rice LLP Page 58 Miami Beach, Florida Hurricane Andrew Economic Impact Study (a) Client: Miami-Dade County, Florida (b) Project Description: Prepared, on behalf of Dade County, four RFQ's to dispense Trust funds appropriated by the State, to administer economic relief to affected businesses in the aftermath of hurricane Andrew. (c) Role in Project Prime contractor. (d) Description of Methodologies and Tools Used: Based on a review of the intent of the legislation, focus group meetings with non- profit organizations, affected businesses, governmental agencies, and the public at-large, we submitted, for County staff approval, four Requests for Proposals (RFQs) to appropriate the expenditure of funds. (e) Description of the Outcome: RFQs and related rating process/methodology developed as a result was instrumental in the receipt by the County of State appropriated funds and a methodology to fairly/equitably dispense the funds. Review of Efficiency and Effectiveness of Internal Audit Function (a) Client: Greater Southeast Community Hospital Foundation, Inc. (b) Project Description: Reviewed the internal audit function to assess the effectiveness and efficiency of the department. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: Reviewed and examined business plans, bylaws, policies, Commission minutes, and other relevant documentation; conducted interviews with Commission members, executive management, presidents and chief financial officers of subsidiaries; performed a survey of health care industry standards for internal audit selected health care organizations; and, a literature search to improve the efficiency and effectiveness of the internal audit function. BCA Watson Rice LLP Page 59 Miami Beach, Florida (e) Description of the Outcome: The audit committee's charge was revised;the internal audit department's charter was revised; revised position descriptions were prepared and subsequent selection for the director of internal audit; and, produced an internal audit brochure. Feasibility of a Disabled Business Program (a) Client: Miami-Dade County, Florida. (b) Project Description: To study the feasibility of the County implementing a disabled business program. (c) Role in Project: Joint venture with another firm (d) Description of Methodologies and Tools Used: Based on review of the County's commission resolutions; discussions with local and national disabled business advocates; review of federal, State, and local government disabled/disadvantaged programs around the country; and, the results of focus group meetings and surveys of disabled individuals, conducted a study to assess the feasibility of such a program. (e) Description of the Outcome: Based on study findings, the County concluded it would not be feasible to implement such a program, at that time. Training for U.S. Department of Defense Contractors (a) Client: Department of Defense (b) Project Description: Watson Rice delivered an accounting and costing presentation in twenty-six major cities on the topic The U.S. Department of Defense 50% Procurement Goal - Making It Work for You. (c) Role in Project Sub-contractor (d) Description of Methodologies and Tools Used: Based on researching legislative background of 50% Procurement Goal for the Department of Defense, knowledge of procurement process for minority vendors; BCC,Watson Rice LLP Page 60 Miami Beach, Florida interviews with successful and unsuccessful contractors, as well as Department of Defense procurement officials; developed a seminar for prospective vendors. (e) Description of the Outcome: The presentation was designed to familiarize current and potential Department of Defense contractors with the accounting and costing policies, principles, and issues, which they needed to, know to successfully bid and complete a contract with the Department of Defense. Management Audit (a) Client: Broward County, Florida (b) Project Description: Watson Rice was engaged to assess the current level of performance and accountability of the Human Rights Division and the Human Rights Board. Included in this audit was a charge to identify specific information related to their successes and deficiencies; identify and make recommendations for increased efficiency; identify the Division's and the HRB's most efficient areas; and identify major areas needing improvement for the Division and the HRB. (c) Role in Project: Prime contractor (d) Description of Methodologies and Tools Used: Reviewed current operational practices of the Division and HRB;reviewed current statutory responsibilities of the Division; reviewed and identified staffing patterns for current and previous years; developed a financial profile of the Division; reviewed case processing and compliance levels; identified and reported on staff workload assignments and productivity;determined how resources are assigned; assessed current backlog and analyzed plans for reduction; assessed the effectiveness, use, and availability of automation; identified improvements that can be made to the existing system; determined accessibility of Division's staff; conducted individual interviews with top level management staff and HRB members; selected referral agencies, community organizations, members of Board of County Commissioners to identify strengths, weaknesses, and opportunities of Division and HRB; assessed management practices and main accomplishments of the Division and HRB; and reviewed reports from internal/external agencies relative to the Division and HRB. BCA Watson Rice LLP Page 61 Miami Beach, Florida (e) Description of the Outcome: Reviewed interim and final findings and recommendations with Division staff, HRB, and County Administrator and his senior staff. Report was used to reorganize Division and HRB. Finance Department Study (a) Client: Miami-Dade Aviation Department (b) Project Description: Watson Rice was engaged to document the work flow of the following departments: budgeting, purchasing and accounts payable, accounts receivable, project costing, grants management, and fixed assets management. (c) Role in Project: Prime contractor. • (d) Description of Methodologies and Tools Used: Using flow charts and narratives documented the work flows of the above functions, including number of persons involved, and documents prepared/used (e) Description of the Outcome: Final product used to assist with ERP implementation. Ohio Department of Transportation -Financial Management Work Shop • Watson, Rice & Company developed and conducted a seminar program for minority entrepreneurs in the construction industry on how to implement sound financial management procedures unique to the construction industry. Also,we recommended ways to improve management efficiency. In 5 years, Watson, Rice & Company presented 25 seminars to more than 750 participants. U.S. Department of Commerce-Minority Business Development Authority(MBDA), • Watson & Rice, under grant contract, assisted minority business enterprises that are involved in, or have the potential to become involved in, exporting in the international market-place. In assisting these businesses we developed export marketing plans; identified potential markets and trade leads; and provided the technical assistance necessary to complete transactions including documentation of short term financing and shipping requirements. $ BCA Watson Rice LLP Page 62 Miami Beach, Florida CH2M Hill/EPA Department of Defense Watson Rice delivered an accounting and costing presentations in several (26) major cities throughout the United States and Puerto Rico. The presentations were part of a one-day seminar entitled "The U.D. Department of Defense 5% Procurement Goal- Making It Work for You" presented by the Department of Defense and Boone Young & Associates. Most of the technical information presented in the Accounting and Costing section of the seminar workbook were researched and developed by Watson Rice personnel. The presentation was designed to familiarize current and potential Department of Defense contractors with the accounting and costing policies, principles and issues, which they need to, know to successfully bid and complete a contract with the Department of Defense. Authority International Development(AID). Gambia • Taught auditing to West African government auditors for three six-week periods. After the first series of instructions, the West African governments specifically requested that we return for another series. Enterprise Information Architecture Project (a) Client: Metropolitan Dade County, Florida (b) Project Description: Assisted the County in the development of enterprise information architecture for building its information systems. (c) Role in Project: Sub-contractor (d) Description of Methodologies and Tools Used: Business inputs were collected; a baseline assessment was conducted; an Enterprise Information Architecture (EIA) vision was developed; technology initiatives and organizational responsibilities were defined; and, a transition plan was developed. (e) Description of the Outcome: Enterprise Information Architecture provided computing blueprints for the county that defined the connectors and relationships of information technology components such as applications, data, processors, storage, etc. to the county's objectives. BCA Watson Rice UP Page 63 Miami Beach, Florida • Computer Conversion (a) Client: City of Gretna, Florida (b) Project Description: Perform a needs assessment; select software and hardware; install microcomputer accounting system; and provide on-going support. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: • Performed needs assessment, including interviews of department heads,City commissioners,and other employees. Objective is to identify short-range and long-range needs. • Selection of hardware and software phase will included preparing a Request for Proposal (RFC))to be sent to prospective vendors based on client needs. From vendor responses will assist client in evaluation of responses with an objective to select the best available vendor meeting the client's requirements. Will select software vendor first. After selecting the software vendor,will assist client in developing AA Request for Bids for hardware to be used to run the software. • After hardware and software vendors are identified, will develop an installation/implementation plan to coordinate delivery/installation of software and hardware, and eventual training for staff. • After completion of installation,will be providing on-going technical support services to the extent not provided by hardware or software vendors. (e) Description of the Outcome: Projects completion will result in a user-friendly computer system with capability of full integration of accounting modules. Indenture Mortgage Information Tracking and General Ledger System (a) Client: Dade County Housing Finance Housing Authority (b) Project Description: Work with Dade County Housing Finance Housing Authority to define the scope of the proposed system, prepare a request for information,evaluate the proposals BCA Watson Rice LLP Page 64 Miami Beach, Florida submitted in response to the request for information,and aid in the implementation process. (c) Role in Project: Prime contractor. (d) Description of Methodologies and Tools Used: • Performed needs assessment. • Assist in selection of hardware and software. • After hardware and software vendors are identified, will develop an installation/implementation plan to coordinate delivery/installation of software and hardware, and eventual training for staff. (e) Description of the Outcome: Project's completion will result in a fully integrated accounting and bond indenture tracking and information system. Small Business Administration-Management and Technical Assistance 7(1) (1-9) and i) • Performed accounting services; production, engineering, and technical assistance; feasibility studies, market analyses, and advertising; government contracts assistance; specialized assistance; financial counseling; business plan assistance; construction management assistance; loan packaging; computer programming services; data processing services; surety bond assistance and international trade services to 7(j) (1-9) and 7(j) (10) qualifiers under the Small Business Administrations Management and Technical Assistance Program. U.S. Department of Transportation/Office of the Secretary • Watson Rice conducted a cost benefit study, which examined the proposed departmental accounting financial information system (DAFIS). This system was developed as a model FMIS for the Federal government to replace all DOT accounting systems consolidating the Department are financial accounting function. It was intended that DAFIS will comply with the requirements of the Federal Managers Financial Integrity Act(FMFIA) as well as A-123 requirements, which will represent a substantial upgrading of current DOT accounting capabilities. This cost benefit study examined a wide range of organizational and technical implementation alternatives including centralized versus decentralized automation architectures, "off-the-shelf" accounting packages, prototyping approaches, grounds-up development and modification of an existing in-house accounting system. This study BCA Watson Rice LLP Page 65 Miami Beach, Florida employed an automated data base approach to data analysis and constructed a decision support model for use of further DAFIS analysis. U.S. Department of Transportation(DOT)Urban Mass Transportation Housing Authority, (UMTA) -Accounting Services • Watson Rice assisted UMTA in the cleanup, reconciliation and automated conversion of its grant management system. This involved approximately 3,520 grants covered by letters of credit and another 3,520 direct pay projects. A detailed program was prepared for extracting and reconciling obligations,disbursements and unliquidated balances. We were able to minimize the cost and time of this effort by designing an approach which allowed us to use accounting technicians, disbursements, draw downs and unliquidated balances. Authority for International Development(AID). Office of Financial Management • Watson Rice conducted a feasibility study on the utilization of a Wang minicomputer within the FRLC Section of the Office of Financial Management. The study required recommendations on the data processing support that a Wang could provide; a summary description of work flows and screen formats; and a determination of whether management type information could be generated from the system to identify excess cash being held by recipients of FRLC. Forensic Audit of the Building Department—City of Miami Beach (a) Client: City of Miami Beach Contact (b) Project Description: Conducted a follow up forensic audit for the City of Miami Beach Building Department related to known kickbacks given to Building Department inspectors from construction developers. (c) Role in Project: (d)Description of Methodologies and Tools Used: (e) Description of the Outcome: We identified significant internal control weaknesses in the building permit process that 9 9P could lead to opportunities for unscrupulous behavior. Fraud Audit for the Housing Authority of the City of Los Angeles a) Client: City of Los Angeles Contact: b) Project Description: Conduct a fraud audit of alleged over billings made to various contractors under contract with Resident Management Corporations (RMC). An RMC BCA Watson Rice LLP Page 66 Miami Beach, Florida is responsible for the property management and administration of low-income housing projects. c) Role in Project: d) Description of Methodologies and Tools Used: e) Description of the Outcome: Our audit identified fraudulent billings from contractors for services not provided. Our audit also identified a conflict of interest in a relationship between a former HACLA executive and a consultant hired by the RMCs. 'Additional,Engagements with Other Governmental Entities OTHER GOVERNMENTAL CLIENTS At BCA WR,auditing governmental entities is not an industry service we provide to fill our slack time of the year. Approximately 90%of our total services involve governmental entities and not-for-profit organizations. We have performed audits of governmental entities for Forty (40) years. A representative sample of our experience serving other governmental organizations follows: Broward County Housing Authority City of Miami Beach,Florida City of Pembroke Pines,Florida City of Oakland Park,Florida City of Wilton Manors, Florida City of Quincy,Florida City of Gretna, Florida City of Lauderhill,Florida City of Tuskegee,Alabama City of Miami. Florida City of North Bay Village City of Opa-locka.Florida EDA Grant City of South Miami, Florida Village of El-Portal,Florida City of Miramar Police Athletic League Homestead Housing Authority Miami, Florida` Miami-Dade County, Florida(Aviation Management contracts) Miami-Dade County School Board Performing Arts Center" Miami-Dade County, Florida" Miami-Dade County Transit Authority(General Segment)* Miami-Dade Housing Agency Miami-Dade Housing Finance Authority Port Of Miami Crane Management South Florida Employment and Training Consortium South Florida Regional Planning Council State of Florida Department of Labor and Employment Security* Broward County Housing Authority Miami-Dade Expressway Authority BCA Watson Rice LLP Page 67 Miami Beach, Florida Selected National Governmental Clients City of New York,N.Y. (Jointly signed)* City of Cleveland Heights City of Shaker Heights City of East Cleveland City of Cleveland School Board(Jointly signed) City of Woodmere Former Resolution Trust Corporation New Jersey School Board New York City Transit City' New Jersey Transit Authority° U.S. Postal Service District of Columbia Responsibility&Management Assistance Authority(the Control Board) District of Columbia Government District of Columbia Housing Finance Agency(DCHFA) District of Columbia Housing Authority(DCHA) Review of Indirect Cost Rate Plans for the District of Columbia Government District of Columbia Public Schools(Management Audit) Economic Development Finance Corporation Maryland Department of Business&Economic Development Funds Wicomico County,Maryland Prince George's County Public School System Housing Authority of Prince George's County Baltimore City Public School System Single Audit&Financial Audit of Several Maryland Towns Metropolitan Washington Council of Governments County of San Diego,California(Forensic Accounting) Managed Competition Audits for the County of San Diego Community Redevelopment Agency of the City of Los Angeles,California San Diego County(Performance Audit) Inglewood Unified School District Los Angeles County Metropolitan Transportation Authority(MTA) U.S. Bureau of the Census Federal Highway Funds for the Virgin Islands Government State of Connecticut Clean Water Fund Workers'Compensation Program for the City of Newark,New Jersey West Contra Costa and Oakland Unified School Districts Riverside County Transportation Commission County of San Diego(Fund/Agency Audits) Los Angeles Police Relief Association(LAPRA) District of Columbia Water&Sewer Authority Reconciliation of Payroll/Personnel Information for the District of Columbia Government 'Joint ventures 8CA Watson Rice LLP Page 68 Miami Beach, Florida DISCIPLINARY ACTIONS TAKEN,OR PENDING AGAINST THE FIRM BCA Watson Rice LLP Page 69 1 Miami Beach, Florida DISCIPLINARY ACTIONS-TAKEN OR'PENDIN'G AGAINSTIHE FIRM RESULTS OF DESK REVIEWS!STATUS OF ANY DISCIPLINARY ACTIONS AGAINST THE FIRM BCA Watson Rice LLP has never had any disciplinary action against it, nor is there any pending or threatened action taken against the Firm or any of its professional staff by a federal or state regulatory body or professional organization. Furthermore,there has not been any litigation or proceeding within the past three(3)years whereby a court or any administrative agency has ruled against the Firm in any manner related to its professional activities or performance,and there is no current or pending litigation or proceedings involving our Firm. DESCRIPTION OF INSURANCE. COVERAGE MAINTAINED BY THE FIRM Certificates of Insurance for the Firm's Worker's Compensation insurance,General Commercial Liability and Professional Malpractice are available upon award. 1CA Watson Rice LLP Page 70 1 -_� ' _ _ ' _ _ _--~-__-____ �----______. -___�- Miami Beach Florida BC�W�*mom'��e LLP - -_� Page 71 __-_--____-_ -' •_- _ Miami Beach, Florida County of Ventura,California Scope of work:Forensic review of the operational and internal Controls of the Public administrator-Public Guardian Division Firm Partner:Michael DeCastro Principal Client Contact: Barbara Beatty (805)654-3113 Barbara.beatty @ventura.org Arczynski Law Scope of work:Forensic audit for the city of Placentia of its waste Hauler contractor Firm Partner.Michael DeCastro Principal Client Contact:Andrew Arczynski (714)578-8838 Andrew @Arcznskilaw.com City of Los Angeles,California Scope of work:Audit in support of the City's civil iitgation against a public relations firm hired by the Department of Water and Power Firm Partner. Michael DeCastro Principal Client Contact: Farid Saffer,City Controller (213)978-7392 Farid.saffar@lacity.org SCA Watson Rice LLP Page 72 lJ Garviso, William From: Ronald Thompkins <RThompkins @bcawatsonrice.com> Sent: Wednesday, April 01, 2015 5:04 PM To: Garviso, William Cc: Granado, Rafael; Rodriguez, Lourdes; Carshena Allison Subject: RE: RFQ 2015-043-WG Audit Services for Resort Taxex and Other Internal Audits- City of Miami Beach Attachments: Scan from a Xerox Color - DO NOT REPLY TO THIS EMAIL. Please see attached. Thanks Ron Thompkins Ronald Thornpkins, CPA, CG,NIA 305-947-1638 (0) 305-944-6225 (F) 305-962-2721 (M) rthompkinsrJbcawatsonrice.com f Miami Office: 520 NW 165`'h Street Road Suite 205 Miami, Florida 33169-6303 - Visit us on the web at www.watsonrice.com `Disclaimer Required by IRS Circular 230** Unless otherwise expressly approved in advance by the undersigned, any discussion of federal tax matters herein is not intended and cannot be used 1) to avoid penalties under the Federal tax laws, or 2) to promote, market or recommended to another party and transaction or tax-related matter addressed. Confidentiality notice`` This electronic message from the undersigned contains information intended for the use of the addressee(s) only, which may be privileged and confidential. If you are not an addressee, any review, distribution, or use of the contents of this message is prohibited. If you have received this message in error, please contact the sender listed above. BOA Watson Rice LLP is an Independently Owned Member of the PrlcGladrey Alliance -�C;. .,'r�-.._i f_:'l=:.-:�•roc:.._.. MC': :a.A.DP: ' At 1):\NO: , v e ' ', fir° e`n e r' 9 9 ,i{ , The McGladrey Alliance is a premier affiliation of independent accounting and consulting firms. The NlcGladrey Alliance member firms maintain their name:--autonomy---and=independence°and=-are-responsible°fcr'-'their own cli nt—fee arrargemenfs deliver] of services and main 2t ranee of clienf - relationships.The NIcGladrey Alliance is a business of RSNI N1cGladrey, Inc., a leading professional services firm providing tax and consulting services. McGladrey is the brand under which RSNI ilcGladrey, Inc.and McGladrey& Pullen, LLP serve clients'business needs. N1cGladrey, the McGladrey logo and the NlcGladrey signature are used under license by RSNI N1cGladrey, Inc.and McGladrey&Pullen,LLP. From: Garviso, William [mailto:WilliamGarviso @miamibeachfl.gov] � ��---�W_.�_ Sent: Tuesday, March 31, 2015 8:36 AM To: 'RThompkins @bcawatsonrice.com' Cc: Granado, Rafael; Rodriguez, Lourdes; Carshena Allison Subject: RE: RFQ 2015-043-LNG Audit Services for Resort Taxex and Other Internal Audits- City of Miami Beach Good Morning, Can you please revise the attached form which you submitted as part of your proposal to reflect your response below to the Equal Benefits? Will need two copies; one for each of your responses Resort Tax Audits and Other Internal Audits. SIMON Alit===e1112=11:1=1 id';9illiam Garviso, CPPB Procurement Department 1700 Convention Center Drive, Miami Beach, FL 33139 Tel: 305-673-7000 Ext. 6650/Fax: 786-394-40021 williamcarvisorr"�< miarnibeach1.cov We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community. From: Ronald Thompkins [mailto:RThompkins @bcaiwatsonrice.com] Sent: Wednesday, March 11, 2015 12:26 PM To: Garviso, William Cc: Granado, Rafael; Rodriguez, Lourdes; Carshena Allison Subject: RE: RFQ 2015-043-1/VG Audit Services for Resort Taxex and Other Internal Audits- City of Miami Beach Please See responses below: From: Garviso, William [mailto:WilliamGarvisoamiamibeachfl.GCv] Sent: Friday, March 6, 2015 11:30 AM To: 'rthompkins @BCAwatsonrice.com' Cc: Granado, Rafael; Rodriguez, Lourdes Subject: RFQ 2015-043-WG Audit Services for Resort Taxex and Other Internal Audits- City of Miami Beach 2 Good Morning Mr. Thompkins, In order to further evaluate your proposals for the above mentioned (RESORT TAX AUDITS)solicitation we need the following clarification or additional information. Your firm submitted two proposals for the Resort Tax Audits portion of the solicitation, Should we only consider your proposals dated 2/26/15? YES, ONLY THE 2/26/2015 SUPiMITTAL proposal-Vve=requested-disclosure—of-anylitigation iithinthe past fiv6-(S)Yjears. Your proposal stated that (page 15) it had none to disclose, however Page 60 "there has not been any litigation or proceeding within the past three (3) years." Please clarify. We have had no litigation within last five (5) years Please clarify your response to the Proposal Certification Questionnaire and Requirements Affidavit, Paragraph 9 Equal Benefits. Your firm responded "Yes"you provide benefits, then stated that your firm doesn't provide benefits, it also read "See Attached"- but we saw no attachment. We Offer health insurance, sick leave, family medical leave, and bereavement leave for employees with spouses and emolo' ees with domestic oartners. Please provide the email contact information for the references provided on page 34 of your submission. JACK L. STEPHENS South Florida Regional Transportation Authority StephensJasfrta.fl.goi Ming Myer City of Oakland Park, Florida mingmeoaklandparkfl.org Corrine Elliott City of Lake Worth, Florida Celliott@lakeworth.org z In order to further evaluate your proposal for the above mentioned (OTHER INTERNAL AUDITS) solicitation we need the following clarification or additional information. In our proposal we requested disclosure of any litigation within the past five (5)years. Your proposal stated that (page 15) it had none to disclose, however Page 60 "there has not been any litigation or proceeding within the past three (3) years." Please clarify. We have had no litigation within last five (5)years Please clarify your response to the Proposal Certification Questionnaire and Requirements Affidavit, Paragraph 9 Equal Benefits. Your firm responded "Yes" you provide benefits, then stated that your firm doesn't provide benefits, it also read "See Attached" but we saw no attachment We Offer health insurance, sick leave, family medical leave, and bereavement leave for employees with spouses and employees with domestic partners. 3 • William Garoiso, CPPB Procurement Department 1700 Convention Center Drive, Miami Beach, FL 33139 Tel: 305-673-7000 Ext. 6650/ Fax: 730-394-4002;williamcarvisorc)miamibeachfl.cov We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community. This email has been scanned by the Symantec Email Security.cloud service. For more information please visit httn:i/www.swnanteccloud.com This email has been scanned by the Symantec Email Security.cloud service. For more information please visit httn://w,vw-c,v.svmanteccloud.com 4 1 . • C. ?!ease chick ail benefits that apply to your answers able!:Ind it in the other'section any additional benefits not already specified. Note: some benefits are provided `b employees because they have-a 3p use Cr domestic partner, such as bereavement.leave; other benefits are !Provided directly to the spouse or domestic^artier,such as medical insuren c', BENEFIT Firm Provides for Firm Provides for Firm does not Employees with Employees with I Provide Benefit SceuseS 1 Domestic Partners Health Sick I eave 1 x Family Medical Leave ' i Bereavement Leave x i x If Proposer cannot offer a beneilt to domestic partners because of reasons outside your control. (e.g., there are no insurance providers in your area willing to offer domestic partner coverage) you may be eligible for Reasonable Measures compliance. To comply on this basis, you must agree to pay a cash equival.nt and submit a completed Reasonable Measures Application (attached) with all necessary documentation. Your .aasonable Nleasur s A;;plicaticn will be reviewed for consideration by the City Manager, or his designee. .Approval is not guaranteed and the viii/ Manager's decision is final. Further information on the Equal Benefits requirement is available at w,m,u.miamibeachit.gov procuremenU. (See attached) 1c, Public Entity Crimes. Section 28,.13^(2)jai. Florida Statutes, as currently enacted or as amended d tr om time to time. states i;at a person or affiliate :hC has been placed on the convicted vendor list following a conviction for a public entity crime may not submit a proposal,proposal-,or reply on a contract to provide any goods or services to a public entity;may not submit 3 proposal,proposal,or reply on a contract with a public entity for the construction or repair of a public building or public work; may not submit proposals. proposals, or replies on leases of real property s ur c entity: may not be awarded or perform work as a contractor. to a public n(il,i. IIG� u. supplier.subcontractor,or consultant under a contract with any public entity:.and may not transact business with any public entity in excess of the threshold amount provided in S. 237.G'.17 for CATEGORY T'!V O for a period of 36 months following the date of being placed ix the convicted vender list. SUBMITTAL REQUIREMENT: No additional submittal is required. By virtue of executing this affidavit document- Proposer agrees with the requirements of Section 26 .1 33: Florida Statutes, and certifies it has not been placed on convicted vendor list. i 1 Acknowledgement of ;addendum. After issuance of solic tation, the City may release one or more addendum to the sciicitaticn which may provide additional information tC Frcpcsers or alter solicitation requirements. The Ci ty will strive to reach every er/ Proposer having received solicitation through the City's e- procurement system, 'Jb ii Purcnase.c om. However. Proposers are solely responsible for assuring they have received any and all addendum issued pursuant o solicitation. This Ackncwiedgement of Addendum section certifies that the Proposer has received all addendum released b r the ,�[! pursuant to this solicitation. ;Failure to obtain and acknowledge receipt of all addendum may result in proposal disquaiiiiicaiion. initial;o'.anlirr „nivai fa fzriiirrr, :ceiOt °IOC '.action I Addendum 1 i Addendum: i I Addendum 11 :. • ��- rod de.ndum'_ :addendum 7 Addendum 1= • Addendum 3 Addendum 3 Addendum 13 I Addendum?1 1.��aerd ri ? ' ?.i dcni~i!ilil Addendum : I Addendum io i Addendum, '• Cf additional confirmation of addendum is required,submit.under J:osr to cover_ 7 I 8