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Audit Service - Bid by Hoyman Dobson & MK Tax and AccountingAD 01- 02 -06 -10 Professional Services - Auditing Submitted By: MK Tax & Accounting, LLC CITY OF OKEECHOBEE Professional Services — Auditing AD 01- 02 -06 -10 BASE BID Full, certified public accounting services related to the financial operation of the City of Okeechobee in accordance with Government Auditing Standards issued by the Comptroller General of the United States and the State of Florida. Total yearly fee written in dollars: Twenty Six Thousand Nine Hundred Dollars ($26,900) per year To be paid monthly as work progresses and are payable on presentation. Total fee for single audit, if required in accordance with OMB Circular A -133 Written in dollars: Three Thousand Five Hundred Dollars ($3,500) per year Proposal for Professional Services - Auditing Bid No. AD 01- 02 -06 -10 mk Submitted by MK Tax & Accounting, LLC Certified Public Accountants 5558 Lake Howell Road Winter Park FL 32792 Phone: 407 -637 -8206 We listen...We care...We deliver... Contact Person: Marguerite Kuntz Date of Bid: June 21, 2010 AD 01- 02 -06 -10 Professional Services - Auditing Table of Contents Transmittal Letter Profile of Bidder Firm Profile 3 Personnel Profiles 4 -6 Professional Auditing and Accounting Services 7 -10 Peer Review 11 Government Audits Performed in Past Five Years 11 Other Information 12 Licenses 13 -14 Sworn Statement Pursuant to Section 287,133(3)(a), Florida Statutes, on Public Entity Crimes 15 -16 Vendor Request Form 17 W -9 18 Submitted By: MK Tax & Accounting, LLC Page 1 -2 i mk MK Tax & Accounting, LLC Certified Public Accountants We listen...We care...We deliver... June 21, 2010 To the Honorable Mayor and Members of the City Council of the City of Okeechobee, Florida www.mktaxandaccounting.com 5558 Lake Howell Road Winter Park FL 32792 Phone: 407-637-8206 Fax: 407 - 637 -8207 MK Tax & Accounting, LLC, is pleased to present this proposal to furnish audit services to the City of Okeechobee, Florida, as described in Bid No. AD 01- 02 -06 -10 Professional Services - Auditing. The proposal is for a one -year service contract for the year ended September 30, 2010, with the option for two (2) additional one -year renewals for a total three -year contract. We will conduct a financial audit, as defined in Chapter 11.45(1)(c), Florida Statutes, of the basic financial statements of the City of Okeechobee, FL. We will conduct our audit in accordance with U.S. generally accepted auditing standards; the standards for financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States; the requirements of Chapter 10.550 of the Rules of the Auditor General; and, if required, a Single Audit, in accordance with the provisions of OMB Circular A -133. We will be available to respond to questions from management, members of the governing body, and members of the audit committee, as well as attend public meetings for discussion of the audit report. We will provide the City with 20 copies of Audited Financial Statements. Upon request, we will assist the City of Okeechobee, FL, in other matters. We are committed to performing the work requested in this bid and delineated in our proposal within the timeframes specified. We are a women -owned certified public accounting firm committed to providing high quality, cost effective services to our clients in a timely manner. We believe that our firm is the best qualified to perform the work for the following reasons: • The audit will be performed by the two owners of the firm, who have extensive governmental auditing experience; • By performing the work ourselves, and not delegating to less experienced staff, we are able to capitalize on the efficiencies gained through that experience; • For the years 2001 through 2006, while employed by another firm, the two owners of this firm were, in fact, the on -site, in- charge auditors for the audit of the City of Okeechobee; and therefore, • The two owners of this firm have more direct, hands -on experience auditing the City of Okeechobee during the past 10 years than any other bidder. The knowledge that we have of the City of Okeechobee from having audited it in the past, combined with a new firm perspective, will provide mutually beneficial efficiencies in the performance of the current year audit. -1- City of Okeechobee, FL June 21, 2010 Page 2 Marguerite Kuntz, CPA, as one of the Manager /Members of the firm, is legally authorized to bind MK Tax & Accounting, LLC, to this bid as submitted. Don't fall into the trap of equating size with quality, professionalism, experience, and ability to perform. We know auditing, we know governmental accounting and reporting, and we will deliver a quality audit! Respectfully submitted, Marguerite Kuntz, CPA Manager /Member imtt- MK Tax & Accounting, LLC 2 AD 01- 02 -06 -10 Professional Services - Auditing Firm Profile: Submitted By: MK Tax & Accounting, LLC MK Tax & Accounting, LLC, is a Florida licensed certified public accounting firm. The firm was started in February 2010 and is a women -owned small business. The two owners /members of the firm are both Florida certified public accountants: Marguerite Kuntz, CPA Kathryn Vetter, CPA, MBA. We are a full- service certified public accounting firm and our services include audits, reviews, and compilations of financial statements, tax preparation for businesses and individuals, tax problem resolution, small business accounting, and payroll. The office address is 5558 Lake Howell Road, Winter Park, FL. It is located in the City of Casselberry, FL, in Seminole County. We have adequate facilities, equipment, and personnel, to ensure prompt and efficient service to the City of Okeechobee. Due to our extensive experience auditing governmental entities, we are fully aware of the equipment, costs, and time needed to perform an audit of an entity the size of the City of Okeechobee. We founded this firm with the belief that integrity and service are the foremost attributes a public accounting firm should have. We developed our mission statement by asking ourselves "What would we want from an accounting firm and how would we want to be treated ?" Our question generated three predominant responses: (1) rather than being talked to, we would want to be listened to and know that what we had to say mattered, (2) we would want to be sure that the product received or work that was being performed for us was done right, and (3) we would want to get what we were promised and get it on time. From this we created our mission statement: We listen to our clients. We care about quality. We deliver on our promises. We take this mission statement seriously because it reflects who we are as a firm, as professionals, and as individuals. We realize that since we are a new firm, you cannot judge our firm on its own merits. We hope that you can look through the firm to the education, experience, professionalism, and commitment of its owners. 3 AD 01- 02 -06 -10 Professional Services - Auditing Personnel Profiles: Marguerite Kuntz, CPA Submitted By: MK Tax & Accounting, LLC Marguerite Kuntz, CPA, began her audit career in 1985 after passing all parts of the extensive CPA exam on the first sitting, an accomplishment few people achieve with only one try. She has been a CPA for 21 years and has 7 years experience auditing Florida governmental entities. Her first governmental audit assignment was the audit of the City of San Bernardino, CA. Other audits she supervised and managed were for government contractors, nonprofit entities, and financial institutions. She also provided outsourced internal audit services to a county and university. In addition, she has experience working for the State of Arizona, Department of Corrections, and the U.S. Air Force Ballistic Missile Office Logistics Division, so she has seen government from both perspectives, as the auditor and as an employee. Licenses and Professional Affiliations: Certified Public Accountant - Florida Certified Public Accountant - California American Institute of Certified Public Accountants Florida Institute of Certified Public Accountants Institute of Internal Auditors Education: BS - Business Administration - Concentration in Accounting & Information Systems from California State University - San Bernardino Governmental Entities Audited: Marguerite has audited the following governmental entities. • City of Okeechobee, FL • City of Satellite Beach, FL • City of Sebastian, FL • Viera East Community Development District, FL • Celebration Community Development District, FL • Enterprise Community Development District, FL • Sebastian Inlet District, FL • City of Palm Bay, FL • City of San Bernardino, CA 4 AD 01- 02 -06 -10 Professional Services - Auditing Personnel Profiles (Continued): Kathryn Vetter, CPA, MBA Submitted By: MK Tax & Accounting, LLC Kathryn Vetter, CPA, MBA, started her career in public accounting performing audits of governmental agencies. Her first governmental audit was for the City of Las Cruces, NM, in 1983. A large portion of Kathryn's auditing career has been performing governmental audits in Florida, New Mexico, and Texas. In addition to municipalities, she has audited counties, public universities, school districts, appraisal districts, community development districts, and nonprofits. She has extensive experience with Single Audits and with the complexities of federal and state grant requirements. She has taught accounting and auditing college courses in Florida and New Mexico. Included in those courses were auditing and governmental accounting classes. She was at the forefront of the implementation of GASB 34 and taught classes in the subject matter. Early in her career she taught CPA review classes to aspiring certified public accountants. As an employee, she also organized, designed, and taught in -house continuing professional education programs. Kathryn has been a licensed CPA for 26 years and a Florida licensed CPA since 1996. She has work experience in both the public and private sector. In addition to public accounting and teaching, she has also been employed as an internal auditor for a national bank, a comptroller for a government contractor, and a financial director at a public university. She not only has experience auditing entities, but also experience dealing with external auditors. Licenses and Professional Affiliations: Certified Public Accountant - Florida American Institute of Certified Public Accountants Florida Institute of Certified Public Accountants Education: MBA - New Mexico State University BS - State University of New York at Stony Brook Teaching Experience: Visiting Assistant Professor of Accounting New Mexico State University, Las Cruces, NM Adjunct Faculty - Florida Southern College, Orlando, FL Instructor - Becker CPA Review, El Paso and Dallas, TX 5 AD 01- 02 -06 -10 Professional Services - Auditing Submitted By: MK Tax & Accounting, LLC Personnel Profiles (Continued): Kathryn Vetter, CPA, MBA (Continued) Governmental Entities Audited: The audits of governmental entities that Kathryn has supervised or managed include, but are not limited to, the following: • City of Okeechobee, FL • City of Cocoa, FL • City of Palm Bay, FL • City of Melbourne, FL • City of Satellite Beach, FL • City of Sebastian, FL • Maple Ridge Community Development District, FL • Urban Orlando Community Development District, FL • City of Las Cruces, NM • City of Alamogordo, NM • Dona Ana County, NM • New Mexico State University, NM • New Mexico Institute of Mining and Technology, NM • Las Cruces Independent School District, NM • Gadsden Independent School District, NM • Ysleta Independent School District, TX • El Paso Appraisal District, TX 6 AD 01- 02 -06 -10 Professional Services - Auditing Professional Auditing and Accounting Services: Audit Scope Submitted By: MK Tax & Accounting, LLC We will audit the governmental activities, the major fund(s), and the aggregate remaining fund information of the City of Okeechobee, Florida, for the year ended September 30, 2010, which collectively comprise the City's basic financial statements. Our responsibility is to express an opinion on these financial statements based upon our audit. We will not audit the financial statements of the fiduciary fund type and the discretely presented component unit. Those financial statements are audited by other auditors and our opinion, insofar as it relates to the fiduciary fund type and the discretely presented component unit, will be based upon the reports of the other auditors. The management's discussion and analysis and required supplementary information are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We will apply certain limited procedures, which consist principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. We will not audit the information or express an opinion on it. Our audit will be conducted in accordance with U.S. generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Tests of the accounting records of the City and other procedures will be conducted as considered necessary to enable us to express an opinion as to whether the financial statements present fairly, in all material respects, the financial position of the governmental activities, the major fund(s), and the aggregate remaining fund information of the City of Okeechobee, Florida, as of September 30, 2010, and the respective changes in financial position thereof for the year ended in conformity with accounting principles generally accepted in the United States of America. We will issue a report on internal control over financial reporting and on our tests of compliance with certain laws, regulations, contracts, and grant agreements as required by Government Auditing Standards. We will not express an opinion on the internal control over financial reporting or on compliance and this report is intended solely for the information and use of management, the Honorable Mayor and Members of City Council, and other legislative or regulatory bodies. We will also conduct our audit in accordance with Chapter 10.550, Rules of the Auditor General, and will issue a management letter as required by those Rules. The audit will include, if required, a Single Audit in accordance with OMB Circular A -133, and we will issue a report on compliance with requirements applicable to each major program and on internal control over compliance. AD 01- 02 -06 -10 Professional Services - Auditing Submitted By: MK Tax & Accounting, LLC Professional Auditing and Accounting Services (Continued): General Audit Approach: We are committed to providing a cost - effective, quality audit to the City of Okeechobee, FL. We will do this by following two basic principles. First, we will take the time to get to know the City and its operations in order to plan our engagement and provide you with the greatest value for your dollar. Due to this understanding, we will be able to focus our time and attention on high -risk areas where the potential for misstatements and the effects of noncompliance have the greatest likelihood of being material. Second, we will draw from our extensive knowledge and experience with governmental audits to design the most effective and efficient audit approach that will accomplish the objective of a high quality audit, yet timely delivered. By performing the audit work ourselves, and not delegating the work to less experienced staff, we are able to capitalize on the efficiencies of the learning curve. We will plan and perform our audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether from errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental regulations that are attributable to the City or to acts by management or employees acting on behalf of the City. Based on our judgment, we will determine the number of transactions and areas to be examined to obtain evidence supporting the amounts and disclosures in the financial statements. We will not perform a detailed examination of all transactions, therefore, there is a risk that material misstatements may exist and not be detected by us. Also, an audit is not designed to detect immaterial misstatements or violations of laws or governmental regulations that do not have a direct and material effect on the financial statements. However, we will inform you of any material errors that come to our attention. Our responsibility, as auditors, is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. We will request written representations from your attorneys as part of the engagement. At the conclusion of our audit, we will require certain written representations from you about the financial statements and related matters. Adjustments, weaknesses in internal control, management recommendations, and management letter items are identified and developed throughout the audit process. We will communicate our findings to management during fieldwork as we gather additional clarifying information. These items will be reviewed with management in order to obtain management's perspective. All comments included in the audit report will be discussed with management, each member of the governing body and each member of the audit committee charged with governance and we will provide City financial staff with a copy of all audit adjustments and reclassifying entries. 8 AD 01- 02 -06 -10 Professional Services - Auditing Submitted By: MK Tax & Accounting, LLC Professional Auditing and Accounting Services (Continued): Audit Personnel: The personnel assigned to the audit of the City of Okeechobee, FL, will be Marguerite Kuntz, CPA, and Kathryn Vetter, CPA, MBA. Marguerite will be the partner -in- charge of the audit and will be the primary contact. She will be available to attend public meetings for discussion of the audit report. Audit Timeline: We will schedule the engagement based in part on the availability of your key personnel, deadlines, and working conditions. Our tentative schedule is: Planning - As soon as contract is awarded. Interim fieldwork - First or second week in August (2 -4 days) Fieldwork - Beginning of November (1 - 2 weeks) - dependent upon when year -end information is available. Auditors prepare draft of financial statements - End of December (information from other auditors will be included as soon as available) Auditors prepare draft report on internal controls and compliance and management letter - End of December - deliver drafts to City no later than January 31. Meeting with City personnel to review drafts - At convenience of City management. Obtain responses from City for inclusion in report Delivery of Final Report (20 copies) - Dependent upon receipt of information from other auditors for fiduciary type fund and component unit and responses from City management. Presentation to City Council Audit Workpapers: The work papers for this engagement are the property of MK Tax & Accounting, LLC, and constitute confidential information. However, upon request we will make certain work papers available to certain regulatory agencies without charge pursuant to authority given them by law or regulation. Also, upon request, we will provide to the City a copy of the work papers pertaining to any questioned costs identified in the audit. 9 NNW r AD 01- 02 -06 -10 Professional Services - Auditing Submitted By: MK Tax & Accounting, LLC Professional Auditing and Accounting Services (Continued): es Other Services: We will assist the City with other related professional auditing and accounting services as required (subject to independence rules), and assist the City with routine consultations as requested by the City. In the event of any state or federal audit, we will be available to assist the City in responding to such audit. Management Responsibilities: Management is responsible for making all financial records and related information required for our audit available to us and is responsible for the accuracy and completeness of that information. We may propose standard, adjusting, or correcting journal entries to your financial statements. You are responsible for reviewing the entries and understanding the proposed entries and their impact on the financial statements. The final responsibility for the financial statements remains with you. Management is responsible for adjusting the financial statements to correct material misstatements and for confirming to us in the representation letter that the effects of any uncorrected misstatements aggregated during the engagement are immaterial, both individually and in the aggregate, to the financial statements as a whole. You are responsible for designing and implementing controls to prevent and detect fraud and for informing us about all known or suspected fraud or illegal acts by management or employees and others that would have a material effect on the financial statements. Fees: Our fee for this engagement will include expenses, such as report reproduction, postage, travel, and copies, and will not exceed $26,900 for the year ended 2010. Any optional renewal periods will be billed at the same rate. If additional services outside the scope of the audit are required, we will communicate to you the scope of the additional services and the estimated fee for approval by the City before any work commences. Other: This bid is for a one -year service contract with the option for two (2) additional one -year renewals for a total three -year contract. The aforementioned information included in this section titled "Professional Auditing and Accounting Services" applies to any renewal period. AD 01- 02 -06 -10 Professional Services - Auditing Peer Review: Submitted By: MK Tax & Accounting, LLC The requirements to have and external quality control review (peer review) are as follows: Governmental Auditing Standards (the Yellow Book), Sec. 3.55, requires an external peer review at least once every three years for audit firms performing audits in accordance with governmental auditing standards. The external peer review requirement is effective within 3 years from the date an audit organization begins fieldwork on its first assignment in accordance with GAGAS. Generally, the deadlines for peer review reports are established by the entity that administers the peer review program. According to the AICPA Standards for Performing and Reporting on Peer Reviews, effective for peer reviews commencing on or after January 1, 2009, the peer review deadline is eighteen months from the year -end of the firm's first engagement requiring a peer review, if the firm had not previously performed an engagement requiring a peer review. Since MK Tax & Accounting, LLC, began in February 2010, it has not been subject to, nor required to have, a peer review. Once our first peer review is performed, we would submit a copy to you. Marguerite and Kathryn were both employed by Florida CPA firms that passed their peer reviews. Kathryn was the person responsible for the peer review at her previous firm and through her diligence to foster compliance, no comments were received from the peer reviewer for that firm's first ever peer review. In fact, the reviewer stated that it was highly unusual for a first time peer review to pass the review with no comments or deficiencies. Government audits performed in the last five years: As noted above, MK Tax & Accounting, LLC was formed in February 2010. The City of Okeechobee, FL, would be the first governmental audit that MK Tax & Accounting, LLC, would audit as a firm, but it would not be the first time that either Marguerite or Kathryn audited the City of Okeechobee. While employed by another firm, Kathryn was the in- charge auditor for the 2001 and 2002 audit years; Marguerite was the in- charge auditor for the years 2003 through 2006. This experience with the City's audits included all aspects of the audit process from planning the audit, performing the fieldwork, preparing the financial statements, writing the footnotes, writing the reports on internal control and compliance, identifying weaknesses and control deficiencies, making management recommendations, performing Single Audits, as required, and interacting with City personnel and management. MK Tax & Accounting does not have any other current government clients. AD 01- 02 -06 -10 Professional Services - Auditing Other Information: Professional Liability Insurance: Submitted By: MK Tax & Accounting, LLC Part V. Submittal Requirements, N. requires the successful bidder to purchase and maintain professional liability insurance with minimum limits of $3,000,000.00 per occurrence. We have contacted our insurance carrier and have been told that the maximum amount that we can obtain under our current policy is $1,000,000 per occurrence and $2,000,000 in the aggregate. We are requesting that the City reconsider the $3,000,0000 minimum requirement and accept the lower minimum of $1,000,000. If that is not possible, and we are the successful bidder, we will make every attempt to obtain a new policy with the $3,000,000 minimum. Since we are a new firm, our acceptance would be dependent upon the underwriting of the policy. NMI WO NO AD 01- 02 -06 -10 Professional Services - Auditing Licenses: Submitted By: MK Tax & Accounting, LLC State License to Practice Public Accountancy (Firm) OW AC# 4828688 STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BOARD OF ACCOUNTANCY SEQ# L1002190 0644 DATE BATCH NUMBER LICENSE NBR 02/19/2010 098111330 AD66535 The ACCOUNTANCY CORPORATION Named below IS LICENSED Under the provisions of Chapter 473 Expiration date: DEC 31, 2011 MK TAX & ACCOUNTING, LLC 5558 LAKE HOWELL ROAD WINTER PARK FL 32792 CHARLIE CRIST GOVERNOR FS'.; DISPLAY AS REQUIRED BY CHARLIE LIEM INTERIM SECRETARY State Licenses to Practice Public Accountancy (Individual) STATE OF FLORIDA AC# 4 �+ 5906 DEPARTMENT OF BUSINESS' AND PROFESSIONAL REGULATION AC38680, 10/09 098087976 CERTIFIED PUBLIC ACCOUNTANT KUNTZ, MARGUERITE JANINE IS LICENSED under the provisions of ch.473 FS. Expiration date: DEC -:31, 2011 L09111001281 STATE OF FLORIDA AC# 4728670 DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION AC0029591 11/19/09 090236468 CERTIFIED PUBLIC ACCOUNTANT VETTER, KATHRYN IS LICENSED under the provisions of Ch.473 Fs. Expiration date, DEC 31, 2011:. L09111900790 4, AD 01- 02 -06 -10 Professional Services - Auditing City and County Licenses Submitted By: MK Tax & Accounting, LLC Business name: Location address: City/State: LOCAL BUSINESS TAX RECEIPT CITY OF CASSELBERRY 95 TRIPLET LAKE DRIVE CASSELBERRY, FLORIDA 32707 MK TAX & ACCOUNTING LLC 5558 LAKE HOWELL RD WINTER PARK FL 32792 -1036 MK TAX & ACCOUNTING LLC 5558 LAKE HOWELL RD WINTER PARK FL 32792 -1036 ISSUE DATE: February 26, 2010 TAX RECEIPT# CLASSII+IATIO; ,Y' QUANTI' EXPIRATION DATE: September 30, 2010 10- 00008865 SERVICES 1 - 5 SEMIN#LE CONY LICE/B4' 45.0 TOTAL: 122.18 Comments: ACCOUNTING/NO UNSCREENED OUTSIDE STORAGE Restrictions: DISPLAY OF GOODS /MATERIALS /SVC/EQUIP/VEHICLES FEE 77.18 45.00 IMPORTANT: THIS TAX RECEIPT MUST BE POSTED CONSPICUOUSLY IN YOUR PLACE OF BUSINESS. PENALTY FOR FAILURE TO DO SO. - 14 - Sworn Statement Pursuant to Section 287.133(3)(a), Florida Statutes, on Public Entity Crimes AD 01-02-06-10 This form must be signed and sworn to in the presence of a Notary Public or other official authorized to administer oaths. 1. This sworn statement is submitted to by for ry v iJ`si 0 cot (Print name of the public entity) ` .f't 4 e. ` \U-✓1 7 Iv, {� (Print individual's name and title) CC Uata�1 p 3_i (Print name of entity submitting sworn statement) whose business address is: 5 " ,5 irto,uett R u Ler 2c r , 9- 3 2 7 C±2 and (if applicable) its Federal Employer Identification Number (FEIN) is: - { 2 L5 O 7 (If the entity has no FEIN, include the Social Security Number of the individual signing the sworn statement: 2 I understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or of the United States, including, but not limited to, any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. 3. I understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), Florida Statutes, means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, non jury trial, or entry of a plea of guilty or nolo contendere. 4. I understand that an "affiliate" as defined in Paragraph 287.133.(1)(a), Florida Statutes, means: A. A predecessor or successor of a person convicted of a public entity crime; or B. An entity under the control of any natural person who is active in the management of the entity and who has been convicted entity crime. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who area active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted of a public entity crime in Florida during the preceding 36 months shall be considered an affiliate. 5.1 understand that a "person" as defined in Paragraph 287.133(1)(e), Florida Statutes, means any natural person or entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term "person" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of an entity. 6.Based on information and belief, the statement which I have marked below is true in relation to the entity submitting this sworn statement. (Indicate which statement applies). X Neither the entity submitting this sworn statement, nor any of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, nor any affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. However, there has been a subsequent proceeding before a hearing officer of the State of Florida, Division of Administrative Hearings and the Final Order entered by the hearing officer of the State of Florida, Division of Administrative Hearings and the Final Order entered by the Hearing Officer determined that it was not in the public interest to place the entity submitting this sworn statement on the convicted vendor list. (Attach a copy of the final order). I understand that the submission of this form to the contracting officer for the public entity identified in paragraph one (1) above is for that public entity only and, that this form is valid through December 31 of the calendar year in which it is filed. I also understand that I am required to inform the public entity prior to entering into a contract in excess of the threshold amount provided in Section 287.017, Florida Statutes, for category two of any change in the information contained in this form. Signature Sworn to and subscribed before me this 13 day of j vk v' (- , 20 i . Personally known ✓ 'L i , -&- Produced Identification Notary Public - State of +-.. E2 , y> A My Commission expires: 6 %8» (Type of Identification) (Printed, Typed, or Stamped Commissioned Name of Notary Public) ��;ipt'��Y..PL°+: BRUCE S. TANNENBAUM 1 Notary Public - State of Florida Tos. �' , My Comm. Expires Jun 8, 2014 16 - '% 9r,Vis Commission # DO 981765 VENDOR REQUEST FORM CITY OF OKEECHOBEE 55 SE THIRD AVENUE OKEECHOBEE, FL 34974 Tele: 863 - 763 -3372 extension 218 Fax: 863- 763 -1686 e -mail: bclement@cityofokeechobee.com Status Information Ref. Sec. 2 -290 Local Vendor Preference Local Business Other X Sec. 2 -282 Definitions: Local Business is a business located within the City of Okeechobee /County VENDOR CONTACT INFORMATION: Vendor Name: MK Tax & Accounting, LLC Street Address: 5558 Lake Howell Road, Winter Park, FL 32792 PO Box: Mailing address: P 0 Box 977 City / State: Windermere, FL Zip Code: 34786 COMMODITY /SERVICE PROVIDED: (please list) Professional Services - Auditing e -mail address: mkuntz @mktaxandaccounting.com Tax Id Number: 27- 1826507 Tele. Number: 407 - 637 -8206 Fax Number: 407 - 637 -8207 This form MUST BE ACCOMPANIED WITH A W -9 if this is a new vendor setup. Form W "9 (Rev. October 2007) Department of the Treasury Internal Revenue Service Request for Taxpayer Identification Number and Certification _ Give form to the requester. Do not send to the IRS. Print or type See Specific Instructions on page 2. Name (as shown on your income tax return) MK Tax & Accounting, LLC Business name, if different from above Check appropriate box: III Individual /Sole proprietor • Corporation ❑ Partnership 0 Limited liability company. Enter the tax classification (D= disregarded entity, C= corporation, P= partnership) ■ P ❑ Other (see instructions) ■ I I Exempt payee Address (number, street, and apt. or suite no.) 5558 Lake Howell Road Requester's name and address (optional) City, state, and ZIP code Winter Park, FL 32792 List account number(s) here (optional) Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on Line 1 to avoid backup withholding. For individuals, this is your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3 Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose number to enter. Part 11 Certification Social security number or Employer identification number 27 1826507 Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3. I am a U.S. citizen or other U.S. person (defined below). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you must provide your correct TIN. See the instructions on page 4. Sign Here Signature of U.S. person • Date ► Genera! Instructions Section references are to the Internal Revenue Code unless otherwise noted. '■' Purpose of Form A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA. Use Form W -9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to: 1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income. Note. If a requester gives you a form other than Form W -9 to request your TIN, you must use the requester's form if it is substantially similar to this Form W -9. Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are: • An individual who is a U.S. citizen or U.S. resident alien, • A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, • An estate (other than a foreign estate), or • A domestic trust (as defined in Regulations section 301.7701 -7). Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax on any foreign partners' share of income from such business. Further, in certain cases where a Form W -9 has not been received, a partnership is required to presume that a partner is a foreign person, and pay the withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W -9 to the partnership to establish your U.S. status and avoid withholding on your share of partnership income. The person who gives Form W -9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States is in the following cases: • The U.S. owner of a disregarded entity and not the entity, Cat. No. 10231X Form W-9 (Rev. 10 -2007) - 18 - Proposal for Annual Independent Audit Services C21( mA.t ps/aait Certified Public Accountants Firm Contact Mrs. Deborah A. Goode 215 Baytree Drive Melbourne, Florida 32940 321- 426 -3040 1- 800 - 946 -2720 Bid date: June 17, 2010 SIM AO AO All r Table of Contents Base Bid Sheet Letter of Transmittal Audit Services Proposal Hoyman Dobson's Government Auditing Experience { Your Audit Team Resumes External Peer Review Hoyman Dobson Audit Approach & Segmentation Audit Timetable Location of the Office From Which the Audit Will Be Performed Federal and State Desk Reviews, No Disciplinary Actions Sworn Statement Pursuant to Section 287.133(3)(a) Insurance Coverage Maintained by Hoyman Dobson License to Practice in Florida Independence Ability to Meet Time Requirements and Serve the City Summary Firm Profile General Description and History of the Firm Truth in Negotiations Certificate Additional Information Letters of Recommendation FD Sworn Statement Pursuant to Section 287.133(3)(a) Licenses ,11(e.taxoDskew U FD C71( max Certified Public Accountants Base Bid Sheet CITY OF OKEECHOBEE Professional Services — Auditing AD 01- 02 -06 -10 BASE BID Full, certified public accounting services related to the financial operation of the City of Okeechobee in accordance with Government Auditing Standards issued by the Comptroller General of the United States and the State of Florida. Total yearly fee written in dollars: $27,300 To be paid monthly as work progresses and are payable on presentation. Total fee for single audit, if required in accordance with OMB Circular A -133 Written in dollars: $4,000 ID dz(vmzutDekeif, c72( /44-afrtJpileapt, Certified Public Accountants Letter of Transmittal aYriut De Leapt, June 18, 2010 Mrs. India Riedel and the Audit Committee City of Okeechobee 55 SE 3rd Avenue Okeechobee, FL 34974 RE: AD 01- 02 -06 -10 Professional Services - Auditing Dear Mrs. Riedel and the Audit Committee: Thank you for the opportunity to provide a proposal to conduct the annual independent financial statement audit for the City of Okeechobee (the "City ") for the year ending September 30, 2010 with the option of auditing your financial statements for each of the two subsequent years, for a total of a three year contract. By selecting Hoyman Dobson the City will receive exceptional service from our uniquely qualified team. According to your request for proposal, Hoyman Dobson will provide the following services to the City. ✓ Perform the audit in accordance with generally accepted auditing standards and the standards of financial and compliance audits as required by Chapter 10.550 of the Rules of the State of Florida Auditor General applicable to local governmental entity audits and as defined in Chapter 11.45 1(c) Florida Statues. The Single Audit will be performed, if required, in accordance with OMB Circular A- 133. ✓ The audit report will contain the auditor's opinion of the financial statements and a report on compliance with applicable legal provisions and bond covenants. ✓ Upon delivery of the final financial statements Hoyman Dobson will provide the City financial staff with a copy of the audited adjusted entries and reclass entries. ✓ No later than January 31 of each year, Hoyman Dobson will submit a written draft report of any weaknesses found in the internal controls. ✓ No later than January 31 of each year, Hoyman Dobson will submit to the City a draft management letter which will identify management weaknesses observed, assess their effect on financial management, and propose steps to eliminate them. ✓ We will discuss all comments that will be included in the audit report with manage -»t, each the ,1,.,0,9012p thg governing body and each member of the audit committee charged with gove ance. 215 Baytree Drive ! Melbourne, FL 32940 p: (321) 255.0088 f: (321) 259.8648 — 2 — 4767 New Broad Street Orlando, FL 32814 p: (407) 422.1681 f: (407) 514.2604 www.hoyman.com Mrs. India Riedel and the Audit Committee City of Okeechobee Page Two ✓ Hoyman Dobson will provide the City of Okeechobee with 20 copies of the Audited Financial Statements. ✓ Debbie Goode, CPA and the audit engagement director will be available to attend public meetings for discussion of the audit report. ✓ At no extra charge Hoyman Dobson will make available the work papers to any Federal or State Agency upon request and in accordance with Federal and State Laws and Regulations. ✓ Hoyman Dobson will assist the City with other related professional auditing and accounting services as required, including, but not limited to bond issuance, financing, auditor of city contracts and franchises, ✓ We will be available throughout the year, at no extra cost, for routine consultations. In fact, we encourage you to call us when issues or questions arise. This will result in more accurate internal financial statements and a more efficient audit. ✓ The fees quoted in our bid are all - inclusive. The City of Okeechobee is not completely in control of the scope of work for future years. Required changes may be mandated by federal, state, other regulatory agencies or accounting and auditing standards boards or by significant staff changes within the City. For these reasons, if the scope of the audit changes significantly from the scope outlined in the RFP, we will present to the City for approval, prior to completing the work, the specific reasons an increase in fees is warranted. We understand the City will not pay Hoyman Dobson for any additional work not covered in this bid that is not agreed upon by a contract amendment. ✓ Upon request, Hoyman Dobson will provide a copy of the work papers pertaining to any questioned costs identified in the audit. Our work papers will be concise and provide the basis for the questioned costs as well as an analysis of the problem. Hoyman Dobson is committed to meeting and exceeding the City's timeline to perform the services noted above. We have outlined below the major points which we believe demonstrate we are the most qualified group of professionals with the desire and ability to service the City. The advantages to you are: ✓ Hoyman Dobson has a superior team of professionals with extensive governmental experience to commit to this engagement. Our firm is currently the auditor for sixteen governmental entities. We perform at least seven Federal and /or State single audits each year. We have ten government qualified auditors on our team. Each year we help prepare or review four Certificates of Achievement for Excellence in Financial Reporting (CAFR), Mrs. India Riedel and the Audit Committee City of Okeechobee Page Three ✓ Hoyman Dobson will be a valuable resource to the City. Our clients and your staff can attest to the fact that we are always just a phone call away. Our team members will work with your staff to address any accounting issues and /or concerns that arise throughout the year. We will consult with you on the new Single Audit rules and sampling guidance that are required to be implemented in 2010. We will also consult with you on the new Fund Balance standard that must be implemented by the City in 2011. This will result in more accurate internal financial statements and a more efficient audit. ✓ Hoyman Dobson will consider the City to be a significant client. The City will therefore command the attention of the directors of our firm. As the audit director, I will be involved hands -on in the planning, review and supervision of the engagement. I will be present at the planning meeting and exit conference and will present the report to the City. In addition, we will have a significant amount of audit manager time on this job. ✓ Hoyman Dobson is a member of the AICPA Government Audit Quality Center. Membership in the Center means we have implemented additional quality control standards on our governmental audits. This includes additional educational requirements for our auditors, attendance in required webcasts and performance of our peer review by other members enrolled in the Audit Quality Center. ✓ Hoyman Dobson offers your finance team free continuing education. We sponsor, at least every other year, eight hours of in -house continuing education, geared specifically to government accounting and auditing. As our client, your finance team can attend these classes free of charge. This results in a cost savings for the City. Our clients speak highly of our Firm, our team members, and our services. Your City Manager and Accounts Supervisor can attest to the timely quality services we have provided to the City over the last several years as the City's auditors. In addition, we have included three letters of recommendation beginning on page 30. Hoyman Dobson hereby confirms this bid has the authority to bind our firm to the submitted bid. We are convinced that after you review our proposal, you will find that we have the desire, experience, and personnel for the City necessary to provide a superior level of service that cannot be matched by any other firm. We look forward to continuing to be the independent auditors for the City of Okeechobee. Sincerely, jHeit ///Jf 4Jer %% Deborah A. Goode, CPA Director Hoyman Dobson ID C71(VntaiUDE264eK/ - 4 - ma.fr&Dile4t14, Certified Public Accountants Audit Services Proposal Hoyman_Dobson's Government Auditing Experience Hoyman Dobson has a total of thirty -seven professional personnel to serve the City. Our staff includes the following: 15 Certified Public Accountants ✓ 7 Directors y 10 Managers, Supervisors and Seniors Our staff includes 10 qualified governmental auditors. Your audit team: Will bring extensive governmental audit experience to this engagement. Our firm is currently the auditor for sixteen governmental entities. Most of these entities are municipalities. Therefore, we are very familiar with the laws, rules and issues unique to municipalities. Will serve as a valuable resource to the City. Our team will be available to you throughout the year for any questions you may have. This will result in more accurate internal financial statements and a more efficient audit. Is a member of the AICPA Government Audit Quality Center. Membership in the Center means we have implemented additional quality control standards on our governmental audits. This includes additional educational requirements for our auditors, attendance in required webcasts and performance of our peer review by other members enrolled in the Audit Quality Center. Has the required continuing education necessary to perform government audits under the Yellow Book. All members of the audit team are in compliance with the continuing professional education requirements of Government Auditing Standards, issued by the Comptroller General of the United States (Yellow Book) and Chapter 11.45. Florida Statutes. Is experienced with CAFR review and preparation. Each year we review and help prepare and /or review four CAFRs. Debbie Goode, the Audit Director and Chas Hoyman, the engagement co- director, have reviewed over 20 CAFRs during their careers. Is highly experienced in both State and Federal single audits. We will consult with you on the new Single Audit rules and sampling guidance that must be implemented in fiscal year 2010. Our team members have performed multiple single audits for government entities. This means experienced governmental auditors will work on your engagement. Has extensive knowledge in internal audits of government entities. The team members assigned to this engagement have worked on internal audits of governmental entities. This experience gives them more insight and a special focus on issues unique to the City. By using our firm you will benefit from a high number of hours being performed by the directors and man and the entire audit being performed by experienced government auditors. Dobson's Government Auditing Experience (continued) --xn M The firm has established quality control policies and review procedures, which are followed on each audit engagement. These policies comply with the requirement for peer review of Government Auditing Standards, issued by the Comptroller General of the United States. The firm and /or employees of the firm are currently members of the following governmental organizations: • Government Finance Officers Association of the United States • Space Coast Governments Finance Officers Association • Florida Government Finance Officers Association • AICPA Government Audit Quality Center Debbie and Justin are active members of the Florida Government Finance Officers Association and the Space Coast Government Finance Officers Association. At your request, on the next pages we have provided a list of some of our government audit clients who are of similar size and for which we have provided similar services in the last 5 years. The outline indicates the scope of work, engagement directors, approximate total hours invested on the most recent engagements, and the contact information for each client. In addition we have provided the entities year end, number of funds and total revenues for the most recent fiscal year audited. Please feel free to contact them with questions regarding their audit experience with us. Our clients will attest to the benefits and advantages of having Hoyman Dobson as their auditor. FD- c)(visuait DskeH, 6 Hoyman Dobson's Government Auditing Experience (continued) Entity/Years/ Engagement Directors/Fiscal Year End City of Daytona Beach Shores 2008 to present Deborah A. Goode Charles W. Hoyman, Jr. Year End September 30 City of Melbourne 1978 to present Charles W. Hoyman, Jr. Deborah A. Goode Year End September 30 City of Cocoa 1997 to present Deborah A. Goode Charles W. Hoyman, Jr. Year End September 30 City of Okeechobee 2001 to present Deborah A. Goode Charles W. Hoyrnan, Jr. Year End September 30 Canaveral Port Authority 1976 to present Deborah A. Goode Charles W. Hoyman, Jr. Year End September 30 Celebration Community Development District 1999 to present Deborah A. Goode Charles W. Hoyman, Jr. Year End September 30 Scope of Work/ Total Hours of the Most Recent Engagement/ 1 Audit and preparation of financial • statements, including preparation of CAFR and Annual Financial Report. 1 Approximate total hours: 330 Audit of financial statements, including Federal and State Single Audit; issued comfort and consent letters for bond closings; prepared /reviewed arbitrage rebate calculations; provide guidance in preparation of CAFR. Approximate total hours: 340 Audit of financial statements, including Federal and State Single Audit; issued comfort and consent letter for bond closing; efficiency study; preparation of CAFR. Approximate total hours: 550 Audit and preparation of financial statements. In previous years, Federal and State Single Audit required. Approximate total hours: 200 Number of Funds 24 I $121.5 million Total Revenues for the Most Recent Fiscal Year Audited Name/Title/ 1 Telephone Number $17.4 million Stephen Whitmer { Finance Director (386) 763-5329 20 Michele Ennis, Finance Director (321) 953-6247 $161 million Micki Abdi, ; Deputy Finance Director (321) 639 -7515 7 Audit and preparation of financial statements, including State Single Audit; preparation of Annual Financial Report; preparation of CAFR; performed arbitrage calculations; various special projects. Approximate total hours: 420 Audit and preparation of financial statements. • Approximate total hours: 145 c)-(vntoubDitie4m, $6.35 million $51.7 million - 7 - 57.9 million fi India Riedel, Account Supervisor (863) 763-3372 Pat Poston Director of Finance (321) 783-7831 Gary Moyer District Manager (954) 753 -03 Hoyman Dobson's Government Auditing Experience (continued) Entity/Years/ Engagement Directors /Fiscal Year End City of Satellite Beach 1978 to present Charles W. Hoyman, Jr. Deborah A. Goode Year end September 30 C Town oflndialantic 2001 to present Deborah A. Goode Charles W. Hoyman, Jr. Year end September 30 Sebastian Inlet fax District 1991 to present Deborah A. Goode Charles W. Hoyman, Jr. Year end September 30 Melbourne- Tillman Water Control District 1983 to present Deborah A. Goode Charles W. Hoyman, Jr. Year end September 30 Space Florida 2004 to present Deborah A. Goode Charles W. Hoyman, Jr, Year end June 30 Scope of Work/ Total Hours of the Most Recent Engagement/ Audit and preparation of financial statements, including State Single Audit and Annual Financial Report. Approximate total hours: 195 Audit and preparation of financial statements. Approximate total hours: 140 Audit and preparation of financial statements; preparation of Annual Financial Report; assistance with ( TRIM compliance. Town of Melbourne Beach 2008 to present Deborah A. Goode Charles W. Hoyman, Jr, Year end September 30 Approximate total hours: 110 Audit and preparation of financial statements; computer consulting. Approximate total hours: 100 Audit and preparation of financial statements, including State Single Audit. Approximate total hours: 190 Number of Funds Total Revenues for the Most Recent Fiscal Year Audited $11.13 million $3.6 million Name/Title/ Telephone Number Mike Crotty, Town Manager (321) 773-4407 Laura Eaton, Town Clerk /Finance (321) 723 -2242 $2.96 million Marty Smithson, District Administrator (321) 724 -5175 1 $1.56 million Al Pennell, District Manager (321) 723-7233 r -4_ $18.89 million j ' Denise Swanson, 1 Controller (321) 730 -5301 Audit and preparation of financial statements, Approximate total hours: 150 $1.88 million Jane Antonsen, Town Accountant (321) 724 -5860 Our team of professionals is the best suited to provide the City of Okeechobee with the highest quality, most efficient and timely services available. U 8 sill Your Audit Team The quality of our work and your satisfaction depend on the commitment of the people assigned to your audit. We believe that Hoyman Dobson is best qualified to serve you because of the experience, professional commitment, and quality of the personnel that we have assigned to this engagement. As the City of Okeechobee's current auditors, we are very familiar with the City's operations, funds and your unique needs. For continuity purposes and to ensure an effective and efficient audit. we will maintain the same personnel on this engagement as in the last two years. The key people of the audit team who would serve the City are: FD Deborah (Debbie) A. Goode, CPA, Audit Director, will serve as engagement director and will have overall responsibility for the efficiency, timeliness and delivery of the services we provide, including developing and maintaining effective lines of communication with City staff. Her responsibilities on the audit will include being involved in planning the engagement, including the pre -audit meeting with management, reviewing the audit work papers, the exit conference and presenting the audit report to the City. Debbie has been involved as a manager or director of audits of Florida municipalities for over twenty years. Debbie stresses a heads -up approach to auditing, which emphasizes pre -audit planning to help insure that we consider all significant audit issues and client concerns before beginning fieldwork. This results in an effective and efficient audit where the audit objectives are met in a timely manner. Charles (Chas) W. Hoyman, Jr., CPA, Engagement Co- Director, will be responsible for providing a second "cold" technical review of the audited financial statements and reports to be issued. Chas brings over thirty years of experience auditing over fifty different governmental units to the audit team. He will address challenges and concerns discovered during the audit and is available to help the City at any time. Justin A. Petrone, CPA, Audit Manager, will oversee and be involved in planning the engagement and supervising the audit associate. Justin has over eight years of government audit experience. Some of Justin's audit clients include the City of Cocoa, the City of Daytona Beach Shores and the City of Satellite Beach. Joseph Peterson, Audit Associate, will be responsible for performing audit procedures under the direct supervision of the Audit Manager. Joe graduated from Stetson in 2008 and joined our firm. Joe has been involved in auditing the City of Satellite Beach, Sebastian Tax hnlet Tax District, Melbourne Tillman Water Control District, and Daytona Beach Shores. c77(vataxDapuc —9— dW Your Audit Team (continued) The key people of the audit team who would serve the City are shown on the chart below. None of the team members have ever had any complaints filed against them by the state board of accountancy or other regulatory entities. DEBORAH A. GOODE, CPA. ENGAGEMENT DIRECTOR JUSTIN A. PETRONE, CPA AUDIT MANAGER JOSEPH C. PETERSON AUDIT ASSOCIATE CHARLES W. HOYMAN, JR., CPA ENGAGEMENT CO- DIRECTOR Detailed resumes of the audit team assigned to this engagement, including educational background, career experience, professional association and activities and relevant continuing education, are included on pages 13 through 16. Below we have outlined governmental entities that the team members assigned to your audit have audited or are currently involved in the audits of: City of West Melbourne Canaveral Port Authority City of Cape Canaveral City of Melbourne City of Sebastian Space Coast Area Transit Authority City of Satellite Beach City of Okeechobee Viera East Community Development District Celebration Community Development District Enterprise Community Development District Montecito Community Development District Melbourne - Tillman Water Control District c}-1(vntax, Dekim, Goode J Nt Hoyman y Nt Nt Nt Nt Nt — 10— Nt Nt Nt J Your Audit Team (continued) Sebastian Inlet Tax District Town of Melbourne Beach Dovera Community Development District Port Malabar Mobile Home Park Recreation District Baytree Community Development District Barefoot Bay Recreation District Brevard County Housing Authorities Brevard County: Board of Commissioners Water & Sewer Utility System Clerk of County & Circuit Court Property Appraiser Sheriff's Department Tax Collector Internal Audit City of Cocoa City of Tampa Housing Authority - City of Tampa City of Plant City City of Temple Terrace City of Daytona Beach Shores The Town of Indialantic City of Bartow City of Ft. Meade City of Inverness City of Wildwood City of Bushnell Citrus County Clerk of Circuit Court Hernando County Clerk of Circuit Court Hillsborough County: Board of Commissioners Sheriff Polk County Goode 4 V Ni Hoyman 4 4 4 4 Petrone 4 Peterson As you can see, the team we have assembled for the audit of the City is comprised of highly qualified members of our fine. You can be assured of the quality of our staff over the term of the engagement. d%U ynuw,Delasw —11— IMO Deborah A. Goode, CPA Audit Director Office: Melbourne Debbie has been a resident of Brevard County since 1989 and is an active member of her community. She has attended leadership training and is past president of Lead Brevard. In addition, she serves on the Board and Executive Committee of EDC and is on the board of FIT's Women's Business Center. Debbie spent the first four years of her career with the national accounting firm Coopers and Lybrand as an auditor. Her practice since joining Hoyman Dobson 20 years ago has been focused completely in the audit arena and specifically in working with governmental entities. She is also a Diplomate of the American College of Forensic Examiners. Debbie's knowledge of governments and internal controls coupled with her forensic accounting knowledge make her an excellent professional to oversee your audit. She will be involved in planning, reviewing, supervising and communicating with management during the audit process. Local Government Entities: • Debbie is currently responsible for overseeing the audits of 16 governmental entities and 3 governmental internal audit clients, • She has a team at Hoyman Dobson of 8 government qualified auditors that directly report to her. • Debbie currently heads up the "Best Practices" committee of the firm's national association, CPAmerica. She is also on the national associations Accounting and Auditing Committee and often assists other members of the association with their governmental accounting issues. Debbie's local public sector clients include: Canaveral Port Authority_ City of Satellite Beach City of Daytona Beach Shores Celebration Community Development District Cit roof Cocoa Town of Indialantic City of Okeechobee Space Florida City of Melbourne Melbourne Airport Authority Sebastian Inlet Tax District Melbourne Tillman Water Control Dist. Education, Professional Certifcations and Affiliations • Master of Accounting from University of South Florida, Tampa • Bachelor of Science, Accounting from Florida State University, Tallahassee • Florida Government Finance Officers Association, Active member • Space Coast Government Finance Officers Association, Active member • Economic Development Commission, Board of Directors and Executive Committee • Women's Business Center at Florida Tech, Board member • Brevard Small Business Assistance Council, Past Chair, Vice- Chair, and Past Treasurer /Secretary • American Institute of Certified Public Accountants (AICPA) • Florida Institute of Certified Public Accountants (FICPA) • CPAmerica, Accounting and Auditing Committee, Past Chair • Leadership Brevard, Past Chair • Diplomate of the American College of Forensic Examiners Continuing Professional Education — Specific tC Government Accounting and Auditing FD Course Government Accounting Update for 2008 Government Accounting Update for 2009 FGFOA 2009 Annual Conference FGFOA 2010 Annual Conference c)(viltaitDdse_g, Credit Hours Course 8 2010 Governmental Audit Quality Center 8 Sampling in a Single Audit Environment 17 Yellow Book 18 _12 For the period July 1 Credit Hours 2 2 8 Total - June 30 W. Hoyman, Jr., CPA Audit Co- Director Office: Melbourne Chas moved to Brevard County in 1964 and has been a resident since that time except for the four years he spent at the University of South Florida and two years immediately following when he worked in the Tampa Bay area. Chas has been very involved in the business community with leadership roles in organizations such as Circles of Care, Economic Development Commission of Florida's Space Coast, and the United Way of Brevard. Since 1973 Chas has provided services to Port Authorities, counties, municipalities, and special district governmental agencies in the State of Florida. These services include audits, internal audits, agreed upon procedures, and special projects. Local Government Entities: • Chas brings thirty five years of experience auditing over 50 different governmental units to the audit team. • He is Managing Director of the firm overseeing 6 additional directors and their departments including the Audit team. He is Co- Engagement Director on all of the firm's governmental audits. • In 1978 Chas helped form a national association of CPA's. This organization, CPAmerica International, Inc., has grown to 75 firms covering the United States. Chas served as Chair for this national association. Chas's local public sector clients include: Canaveral Port Authority City of Satellite Beach City of Okeechobee City of Melbourne City of Daytona Beach Shores Celebration Community Development District City of Cocoa Town of lndialantic Melbourne Airport Authority Sebastian Inlet Tax District Melbourne Tillman Water Control Dist. Space Florida Education, Professional Certifications and Affiliations • University of South Florida, Tampa • Duke University, Duke /AICPA Managing Partner Leadership Institute • American Institute of Certified Public Accountants (AICPA) • Florida Institute of Certified Public Accountants (FICPA) • CPA Mutual Insurance Company, Board of Directors • United Way of Brevard County - Board of Directors • Economic Development Commission of Florida's Space Coast - past Board Member, past Chairman, past Treasurer, Recipient of Volunteer of the Year Award, Recipient of the Gary R Cunningham Distinguished Service Award • CPAmerica International — Past Chairman of the Board • University of Florida, Fisher School of Accounting Steering Committee • Florida Institute of Technology, School of Business, Board of Overseers • Circles of Care - past Chairman and past Board Member • Melbourne /Palm Bay Chamber of Commerce Continuing Professional Education -- Specific to Government Accounting and Auditing FD- Course Credit Hours Auditing & Reporting on Local Govt's in Florida 8 2009 Governmental Accounting & Auditing Update 8 2007 Revised Yellow Book Gov't Auditing Standards 8 Current Events Affecting Financial Condition - Gov't & Not -For Profit Organizations 3 — 13 -- Course Implementing the Risk Assessment Standards Government Accounting Update for 2008 GFOA 2010 Annual Conference Credit Hours 8 8 14 Total For the period July 1 - June 30, 1 Justin A. Petrone, CPA Audit Manager Office: Melbourne Justin has lived in Brevard County since 2002, and was previously a resident of Martin County for nearly 11 years. Justin's young children, Riley and Addison, were born in Brevard and Riley currently attends Trinity Lutheran preschool. Justin started his career with the national accounting firm Arthur Andersen as an auditor. His practice since joining Hoyman Dobson 7 years ago has focused solely on the audit and internal audit areas. During that time, Justin has served primarily governmental entities, where he has worked creatively to efficiently manage GOA Yellow Book external audits, State and Federal Single Audits, internal audits and other attestation engagements. Local Government Entities: Justin's local public sector clients include: Canaveral Port Authority City of Daytona Beach Shores Town of Indialantic City of Cocoa Brevard Community College Foundation City of Okeechobee Town of Melbourne Beach City of Satellite Beach Space Florida Education, Professional Certifications and Affiliations • Bachelor of Accounting from Indiana University • Certified Public Accountant (CPA) • Associate Member, Florida Government Finance Officers Association (FGFOA) and Space Coast Government Finance Officers Association (SCGFOA) • Member. American Institute of Certified Public Accountants (AICPA), • Member, Florida Institute of Certified Public Accountants (FICPA) • Participant, Brevard Insight • Regularly attends government accounting and auditing seminars in compliance with Yellow Book standards, as well as Hoyman Dobson - required CPE for public sector auditing and internal audit consulting Continuing Professional Education — Specific to Course Sampling in a Single Audit Environment Current Events Affecting Financial Condition - Gov't & Not -For Profit Organizations FGFOA 2009 Annual Conference Employee Benefit Plans 2009 Audit Briefing c DA6 Government Accounting and Auditing Credit Hours 2 3 18 1 — 14 — Course Audit of 401(k) Plans 2009 Governmental Update GFOA 2010 Annual Conference Credit Hours 8 8 18 Total 58 For the period July 1, 2008- June 30, 2010 Ale r Joseph C. Peterson Audit Associate jpeterson @hoyman.com In 2008, Joe joined Hoyman Dobson after successfully graduating from Stetson University with a Master of Accountancy. Joe was been working exclusively in the audit department since day one and at Hoyman Dobson Joe has been involved in over 15 audits, ranging from commercial entities and non - profit organizations and employee benefit plans. Joe passed two parts of the CPA exam this last year and is geared to pass the last two parts this summer in order to call himself a full- fledged CPA. Local Government Entities: Joe's local public sector clients include: Joes public sector clients include: City of Satellite Beach Town of Melbourne Beach Sebastian Inlet Tax District City of Okeechobee Melbourne Tillman Water Control District City of Daytona Beach Shores Education. Professional Certifications and Affiliations • Master of Accountancy, Stetson University • Bachelor of Business Administration in Accounting Information Systems, Stetson University • Florida Institute of Certified Public Accountants (FICPA) • American Institute of Certified Public Accountants (AICPA) Continuing Professional Education — Specific to Government Accounting and Auditing FD Course Credit Hours 2008 Governmental Accounting Update 8 2009 Governmental Accounting Update 8 Government Accounting Principles 10 Current Events Affecting Financial Conditions — Government & Not for Profit Organizations 3 Revised Yellow Book 2008 7 Audits of 401(k) Plans 8 44 For the period July 1, 2008 — June 30, 2010 c}i(vntiu&Dekgx, -- 15 — External Peer Review Hoyman Dobson is a member of the American Institute of Certified Public Accountants, Division of CPA Firms - PCPS Firm Practice Section, which requires, among other things, that we submit to a periodic quality control peer review by an independent, AICPA supervised, peer review team. The AICPA quality control program further requires us to conduct annual internal control inspections on specific audit engagements and on a firm -wide basis. The firm has established quality control policies and review procedures which are followed on each audit engagement. These policies comply with the requirement for peer review of Government Auditing Standards, issued by the Comptroller General of the United States. The most recent peer review conducted on Hoyman Dobson earned an unqualified report, which confirms that our practice conforms to the quality control standards established by the AICPA. hl addition, Hoyman Dobson received no letters of comment, a goal only approximately 25% of all firms reviewed are able to achieve. The sample reviewed by the peer review team included specific governmental engagements and audits performed under the Single Audit Act and fully satisfied the strict criteria required for an acceptable audit. A copy of the inost recent opinion letter from our peer review follows: CRFW IGGS NGRAM To the Directors Hoyrnan, Dobson & Company, P.A. Carr, Riggs & Ingram, LLC 1713 Mahan Drive Tallahassee, Florida 32308 (850) 878-8777 (850) 878 -2344 (fax) www.cricpa.com September 9, 2008 We have reviewed the system of quality control for the accounting and auditing practice of Hoylnan, Dobson & Company, P.A. (the fine) in effect for the year ended May 31, 2008. A system of quality control encompasses the firm's organizational structure, the policies adopted and procedures established to provide it with reasonable assurance of conforming with professional standards. The elements of quality control are described in the Statements on Quality Control Standards issued by the American Institute of CPAs (AICPA). The firm is responsible for designing a system of quality control and complying with it to provide the firm reasonable assurance of conforming with professional standards in all material respects. Our responsibility is to express an opinion on the design of the system of quality control and the firm's compliance with its system of quality control based on our review. Our review was conducted in accordance with standards established by the Peer Review Board of the AICPA. During our review, we read required representations from the firm, interviewed firm personnel and obtained an understanding of the nature of the firm's accounting and auditing practice, and the design of the fine's system of quality control sufficient to assess the risks implicit in its practice. Based on our assessments, we selected engagements and administrative files to test for conformity with professional standards and compliance with the firm's system of quality control. The engagements selected represented a reasonable cross - section of the fine's accounting and auditing practice with emphasis on higher -risk engagements. The engagements selected included among others, audits of Employee Benefit Plans and engagements performed under Government Auditing Standards. Prior to concluding the review, we reassessed the adequacy of the scope of the peer review procedures and met with firm management to discuss the results of our review. We believe that the procedures we performed provide a reasonable basis for our opinion. In performing our review, we obtained an understanding of the system of quality control for the firm's accounting and auditing practice. In addition, we tested compliance with the firm's quality control policies and procedures to the extent we considered appropriate. These tests covered the application of the firm's policies and procedures on selected engagements. Our review was based on selected tests therefore it would not necessarily detect all weaknesses in the system of quality control or all instances of noncompliance with it. There are inherent limitations in the effectiveness of any system of quality control - 1 7 - Hoyman, Dobson & Company, P.A.. Page 2 and therefore noncompliance with the system of quality control may occur and not be detected. Projection of any evaluation of a system of quality control to future periods is subject to the risk that the system of quality control may become inadequate because of changes in conditions, or because the degree of compliance with the policies or procedures may deteriorate. In our opinion, the system of quality control for the accounting and auditing practice of Hoyman, Dobson & Company, P.A. in effect for the year ended May 31, 2008, has been designed to meet the requirements of the quality control standards for an accounting and auditing practice established by the AICPA and was complied with during the year then ended to provide the firm with reasonable assurance of conforming with professional standards. r 4ac, Carr, Riggs & Ingram, LLC Dobson Audit Approach & Segmentation In order to conduct highly effective audits, many years ago Hoyman Dobson adopted the risk based approach to auditing. This approach requires extensive upfront planning to determine where the "true" audit risks for each particular entity lie. We then focus our audit procedures more heavily on the higher risk areas. We update this risk analysis each year and therefore the areas of focus vary from year to year. As a result of this approach, you benefit from a more effective and efficient audit. Awareness and testing related to applicable laws and regulations during every phase of the audit is essential to the competent conduct of a financial and compliance audit. In determining those laws and regulations which we will test as a part of the audit of the City of Okeechobee, we will direct our attention primarily to those matters we feel might have a direct financial impact on the City's resources or the use of those resources. Our approach to the identification of the relevant compliance criteria will include the following steps: obtain the City's charter and other organizational documents obtain representations from City officials and legal counsel as to current compliance requirements J obtain relevant ordinances and resolutions review the minutes of City Council meetings to determine local ordinances, resolutions, and actions that have been approved that have a financial impact obtain documents relating to current grant funding to determine compliance requirements obtain representations from state agencies, grantor agencies, fiscal agents and other third party organizations obtain information from the State Auditor General on any changes to audit requirements for local governmental units by the State of Florida obtain evidence of the City's compliance with applicable budget laws This identification of compliance criteria will be done early in audit fieldwork, primarily during interim work, so the audit team may be aware of the relevant issues throughout the audit. Hoyman Dobson has developed an audit program to specifically test compliance with Florida laws. This program is updated annually and meets the requirements of SAS 68 for other compliance auditing responsibilities in government audits and Chapter 10.550 of the Rules of the Auditor General. The Florida laws related to travel, budgeting and trim compliance are included in this audit program and are tested during each audit to ensure the municipality is in compliance. FD- (I-iv/mit/Do-4ft _19_ Hoyman Dobson Audit Approach &. Segmentation (continued) Our tests of compliance with laws and regulations may take many forms. They are substantive tests and may relate to criteria as well as to groups of transactions. Therefore, certain tests may use audit sampling effectively, while others may require more detailed testing. The level and methodology of testing will depend on several factors: the number of major federal and state financial assistance programs the effectiveness of the City's internal control policies and procedures to ensure compliance with laws and regulations the size of the universe of transactions subject to certain compliance requirements (i.e., travel expenditures) Our audit segmentation consists of four throughly planned audit phases. 1. Audit Planning A well thought -out and designed audit plan is the foundation for a successful audit. To achieve the audit objectives, our audit team will focus on understanding the City of Okeechobee's business operations. Since our team has a thorough understanding of the City already, we will be updating our understanding for any new issues that have occurred, thereby limiting the time it will take your staff to familiarize us with the City. Materiality and audit risk are also two important factors in developing our audit plan. Materiality depends on the size and nature of the potential omissions and the surrounding circumstances. During this phase we will also evaluate the audit risk in three areas: inherent risk, control risk, and detection risk. Our planning phase will include documenting and walking through transactions to ensure the internal controls are in place. 2. Execution of the Audit Fieldwork During this phase, Hoyman Dobson's audit team will perform more detailed testing of the City's internal controls. When testing the internal controls as it relates to financial reporting, we are primarily focused on policies and procedures that pertain to the City's ability to record, process, summarize, and report financial data consistent with the assertions embodied in the financial statements and financial related items as well as to ensure compliance with laws and regulations. Hovman Dobson Audit Approach & Segmentation (continued) For the purpose of our audit, we will classify the significant internal control structure policies and procedures into control categories. For all of the control categories, we will obtain an understanding of the design of relevant policies and procedures and whether they have been placed in operation. Afterwards, we will assess control risk. Awareness and testing related to applicable laws and regulations is essential to the competent conduct of a financial and compliance audit. In determining those laws and regulations which we will test as a part of the City of Okeechobee audit, we will direct our attention primarily to those matters we feel might have a direct financial impact on the City of Okeechobee's resources or the use of those resources. The auditors will arrive on -site to perform the fieldwork procedures and will be dedicated to work on your audit and only your our audit during the time frame we outline with the Accounts Supervisor. Justin and Joe, who will perform the majority of the audit work, have sufficient time during the months of November and December to complete the City's Audit. 3. Review Phase It is critical the testing and the documentation behind the auditors' findings accurately support our final conclusions. As such, during this phase, our directors will meticulously review the audit conclusions to make sure they precisely support the audit findings. During this phase we will also discuss our findings and recommendations with the City of Okeechobee's management team. 4. Audit Reports and Presentation During this phase we will prepare a report on our understanding of The City of Okeechobee's internal control structure. The report will include: An overview of controls established to insure compliance with laws and regulations that have a material impact on the financial statements Assessment of control risk made as part of the financial statement audit Material weaknesses, if any, as identified during our audit Significant deficiencies and management letter comments The audit team will have an exit conference with the Accounts Supervisor and City Manager. Once the financial statements are finalized, Debbie Goode will make the presentation to Council on the financial condition of the City and ensure any questions they have are answered. FD- c7YvntaxiDt164,94, _21 Hoyman Dobson Audit Approach & Segmentation (continued) Analytical procedures will be used during the three segments of the engagement: in the planning phase, to assist in determining the nature, timing and extent of other work to be performed during the course of fieldwork, as a substantive audit procedure in the final review stage of the audit We anticipate that the analytical procedures in the planning phase will consist of comparisons between current and prior year amounts in each fund -type to be applied at the financial line level in the balance sheet as well as to revenues and expenses /expenditures. During fieldwork, analytical procedures will be applied where they will be a more effective method of obtaining audit evidence than would tests of details in accounts, i.e., salaries and wages compared to budgeted amounts by function or department and total assessed value times the current tax rate compared to the actual property taxes billed. Analytical procedures in the final phase of the audit will consist primarily of ratio analysis and examining relationships in specific funds. Hoyman Dobson Audit Approach & Segmentation (continued) FD. Procedures cs z 1. Strategic Audit Planning Gain Understanding o Operations Evaluate Internal Controls Design Audit Plan and Procedures 2. Audit Fieldwork Identify Audit Methodology Test of Internal Controls Test of Transactions U 3. Review Phase Directors' Review of Audit Documentation Documentation of Auditors' Conclusions Preliminary Audit Findings Discussion with Appropriate City Officials 4. Audit Reports and Presentation Auditors' Reports and Management Letter Deliver final financial statements to Accounts Supervisor 23 Presentation to the City Council CITY OF OKEECHOBEE ID AUDIT DIT TIMETABLE YEAR 2009 -2010 / $ & r ) • m z rfi 0 • \ 0 \ _ \ c-, \ \ $� a a % o 3 ƒ 1) x % • \ ƒ / 7 « \ un ti k Our goal is to get the financial statements to you in a timely manner. timetable to fit your schedule. x - / 0 \ Location of the Office From Which the Audit Will Be Performed This audit will be staffed and supervised from our office located at 215 Baytree Drive, Melbourne, FL 32940. This location is our head office and has been located in Brevard County since 1964. Our clients and your staff can attest to the fact that we are always just a phone call away. Our team members will work with your staff throughout the year to address any accounting issues and /or concerns that arise throughout the year. Federal and State Desk Reviews, No Disciplinary Actions Hoyman Dobson is subject to federal and state desk reviews and field reviews of its audits on an annual basis. During the past three years, although we have been subject to such reviews, we have not been required to revise or reissue any of our audit reports. The firm has never been disbarred by the Federal Government or any State Government. In addition, the firm has never had any disciplinary actions taken or pending against it with state regulatory bodies or professional organizations. The firm and members of the firm have never been involved in any disciplinary actions or malpractice litigation. The firm prides itself on the quality of its work. Sworn Statement Pursuant to Section 287.133(3)(a) On page 30 we have included the sworn statement pursuant to Section 287.133 (3)(a), Florida Statues, on public entities crimes. Insurance Coverage Maintained h o :t man Dobson Throughout this engagement Hoyman Dobson will maintain insurance for professional liabilities errors or omissions with the minimum limits of $3,000,000.00 per occurrence. License to Practice in Florida Hoyman Dobson CPAs as well as the directors and manager assigned to this engagement are licensed by the State of Florida, Department of Business & Professional Regulation, and the State Board of Accountancy to practice in the State of Florida. On page 36 through 38 we have included copies of our office occupational license along wit our team members licenses to perform audit services in the state of Florida. c)-(vistaxiDdkim, - 25 Independence Hoyman Dobson is affirmatively independent of the City as defined below by generally accepted auditing standards (GAAS), approved and adopted by the membership of the American Institute of Certified Public Accountants, and by Government Auditing Standards, issued by the Comptroller General of the United States. ❑ GAAS: "A member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. A member in public practice should be independent in fact and appearance when providing auditing and other attestation services." ❑ Government Auditing Standards: "In all matters relating to the audit work, the audit organization and the individual auditors, whether government or public, should be free from personal and external impairments to independence, should be organizationally independent, and should maintain an independent attitude and appearance." Pursuant to Florida Statutes, Chapter 112, Hoyman Dobson hereby confirms we do not have any officers, directors, or agents who are also public officers or employees of the City of Okeechobee. None of the City officers or employees own, directly or indirectly, any interest in Hoyman Dobson. Ability to Meet Time Requirements and Serve the C NO Hoyman Dobson's Audit Team is effectively staffed to fully meet and exceed the needs of the City. Our current resources, team members, and work schedules are more than adequate to retain the City as a client. We will be able to provide the City with timely and highly reliable audit services while remaining easily accessible and responsive to your service needs. Our team will meet and exceed the City's desired time schedule. a2i( mAxDd14..m, Certified Public Accountants Summary Summary We would like to thank the City of Okeechobee for allowing Hoyman Dobson to submit a proposal for the annual audit services. Hoyman Dobson, as the firm profile below outlines, is a group of individuals who are interested in providing high quality, professional services to the City. Our audit approach will allow us to use the in -depth knowledge we have of governmental entities, as well as our technical audit knowledge to provide superior service to you. The selection of Hoyman Dobson as your independent certified public accountants will insure that the City's financial statements are completed in an efficient and effective manner and delivered on a timely basis. We are committed to providing timely, quality service to the City of Okeechobee. We believe our qualifications set us apart from the rest. We hope you will agree and allow us the privilege of continuing to be the City's auditors. FD- c}(vistiut,D164m, -- 27_ Certified Public Accountants Firm Profile General Description and History of the Firm -� Hoyman Dobson, Certified Public Accountants, is a local firm with offices at 215 Baytree Drive, Melbourne, Florida 32940. In January 2004 we expanded our practice by opening an office in Winter Park, Florida and later relocated to Baldwin Park, Orlando. Members of our firm have provided professional services to non -profit organizations, governmental agencies, and commercial clients in Brevard since 1964. Throughout the years our firm has been recognized for its excellence and commitment to provide quality services to our clients and a positive working environment for our employees. Some of our most recent awards and recognitions include: • 2010: Debbie Goode, Hoyman Dobson's Audit Director won the FICPA's Women to Watch Award in the Experienced Leaders category. • 2010: Chas Hoyman, the Managing Director, is inducted into The Junior Achievement Space Coast Business Hall of Fame • 2010: Space Coast Business Magazine recognizes Chas Hoyman as one of Brevard's 100 Most Influential Business People • 2009: Space Coast Business Magazine: One of 50 Most Influential Businesses in Brevard County • 2009: Cocoa Beach Area Chamber "Business of the Year" Award • 2008: Melbourne Palm Bay Area Chamber `Best Business" Award • 2008: National Alfred P. Sloan Award for Business Excellence and Workplace Flexibility • 2007: Space Coast Business Magazine's "Top 50 Most Influential Companies in Brevard County" • 2007: EDC of Florida's Space Coast awarded Chas Hoyman, our Managing Director, with "Gary R. Cunningham Distinguished Service Award for Economic Development" • 2006: Melbourne Palm Bay Area Chamber "Best Places to Work" • 2003: Melbourne Palm Bay Area Chamber "Best Places to Work" • 2002: Orlando Sentinel's "Top 100 Companies for Working Families" • 2002 — 2003: Bowman's Accounting Report "One of America's 25 Best Finns" The firm is a founding member of CPAmerica. This is a worldwide association comprised of seventy-six firms located in forty-one states and more than ninety firms located in most of the countries throughout the rest of the world. This represents a pool of staff in excess of 2,200 professionals in the United States that generally cannot be provided by a local public accounting firm. Through our association with these firms, we can provide the expertise, talent, and resources, of much larger accounting firms but still offer our clients personalized services at a reasonable cost. ID c}frax Dd4s20, — 28 — General Description and History of the Firm (continued) While similarities exist among Hoyman Dobson and other local accounting firms, there are some real differences - differences with a potentially significant impact to the City. We feel that our firm provides an added measure of experience, depth, strength, responsiveness, and size which enables us to supply the best service to the City. Truth in Negotiations Certificate Hoyman Dobson certifies that the fees, rates and costs as proposed are accurate and complete. Hoyman Dobson will not increase the fee over the agreed amount as long as the scope of the audit is consistent with the scope outlined in the request for proposal. The City of Okeechobee is not completely in control of the scope of work for future years. Required changes may be mandated by federal, state, other regulatory agencies or accounting and auditing standards boards or by significant staff changes within the City. For these reasons, if the scope of the audit changes significantly from the scope outlined in the RFP, we would present to Council for their approval, prior to completing work, the specific reasons an increase in fees is warranted. With our governmental clients this is rarely done. C71( max/ Di214190/ Certified Public Accountants Additional Information Serving the Community FLORIDA City of Cocoa, Florida FINANCE DEPARTMENT 603 Brevard Avenue Cocoa, Florida 32922 PHONE (407) 639 -7516 FAX (407) 639 -7575 To Whom It May Concern: Hoyman, Dobson & Company, P.A. has been engaged by the City of Cocoa to perform auditing and various other services since 1997. The scope of their services has been as follows: Perform an audit of the City's financial statements in conformity with generally accepted auditing standards as well as Government Auditing Standards and Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations for fiscal years 1997, 1998, and 1999. 2. Perform agreed -upon procedures related to various bond issues for fiscal years 1997, 1998 and 1999. 3. Assist Finance Department with specialized accounting issues related to fixed asset subsidiary ledgers and cash flow statement preparation. The City's experience with Hoyman, Dobson and Company in relation to all the services mentioned above has been very positive. Work and time schedules are prepared in advance, and are adhered to. Any deviance from schedules are usually at the request of the City, not the firm. Hoyman, Dobson and Company staff are always pleasant and courteous. Our questions are answered as expediently as possible, and phone calls are returned promptly. City staff knows they always have access to the firm, on a year -round basis. We do not have to wait until the firm comes out to do the audit before we can ask any questions. Auditing firms always have staff turnover. As a result, the auditee will usually have new staff working on the audit every year. One of the things I particularly enjoy about Hoyman, Dobson and Company is that although there may be one or two new staff members working on the audit, the managing partner and the audit staff manager have been the same from year to year. Consequently, there is not so much of learning curve and there is greater efficiency each year because there has been at least some staff consistency. -30— The Hoyman, Dobson and Company staff is well- trained. In fact, City staff have attended seminars on upcoming issues presented by Hoyman, Dobson and Company. The firm has demonstrated more than adequate technical abilities in the performance of their auditing, accounting and bond issuance services. In fact, in the last fiscal year, the City refunded a previous bond issue. The auditors were of tremendous assistance to us in recording the effects of the bond transaction. I would not hesitate in recommending the services of Hoyman, Dobson & Company, P.A. In the event there are questions or if further information is required, please do not hesitate to contact either Ric Holt or me at the numbers listed below. Very truly yours, 1 :_6 11 11 Donna M. Mince Acting Finance Director (321) 639 -7515 James R. (Ric) Holt Acting City Manager (321) 639 -7550 PORT AUTHORITY To Whom It May Concern: JOE D. MATHENY Chairman RODNEY S. KETCHAM Vice- Chairman DONALD N. MOLITOR Seaetary- Treasurer RALPH J. KENNEDY Commiasione RAYMOND P. SHARKEY Commissioner MALCOLM E. McLOUTH Executive Director Hoyman, Dobson & Company, P.A. has been the auditors for the Canaveral Port Authority since 1976. We have always received a superior level of service from this firm. The firm currently provides the following services to us: - Audit of Port's Comprehensive Annual Financial Report - Preparation of Port's Annual Financial Report - Arbitrage Calculations Preparation of Port's 125 Plan and Employee Benefit Plan Tax Returns (Forma 5500) Assistance with preparation of Port's Annual Report These are the services the firer has been engaged to perform on an annual basis. In addition, the firm has provided many management advisory services, such as internal control studies of the parking lot, assistance with interpreting new standards and detemiining compliance with Florida Statutes from an accounting standpoint. I have always found Hoyman, Dobson & Company, P.A.'s team to be professional and technically competent. They have an extensive government accounting practice and have people who specialize in all areas of accounting. The firm provides services in line with the National accounting firms, but yet offers a much more personal touch to their clients. Members of the firm are always available to assist us as issues arise. Our audit has always been done within the agreed upon time frame and at the agreed upon fee. I am very confident in the firm and the abilities of the individuals at the firm who serve the Port. I would highly recommend Hoyman, Dobson & Company, P.A. to be your accounting consultants. Sincerely, CANAVERAL P • RT AUTHORITY Albert J. Fra is II, CPA Deputy Exec tive Director/ Director of Finance, Administration & Risk Mgmt. PORT CANAVERAL & F EIGN TRADE ZONE 136 P.O. Box 267 • Cape Canaveral, Florida 32920, USA • 321.783.7831 • Fax; 321.784.6223. 1.888.PORTCAN E -mail: poncan @aol.com • httpl/vnvw.portcanaveral.org February 20, 2009 City of Daytona Beach Shores "Life is Better Here" Office of the Finance Director To Whom It May Concern: The purpose of this letter is to serve as a testimonial for our experience with the fine of Hoyman - Dobson in their role of performing audit services for the City. After 24 years with the same audit firm, last year the City issued an RFQ for comprehensive audit services. We received proposals from six firms (including our current vendor), and interviewed all respondents before selecting Hoyman for contract award. This decision was based on both the tangible (the firm's professional credentials, capabilities, and references), and the intangible...what we perceived as Hoyrnan's ability to work with us as partners and colleagues in our pursuit of continual improvement to our financial management. After our first year of experience with Hoyman, we are confident that we made the right decision. First year engagements are typically a bit stiff, as each party goes through the process of understanding each other's organizational cultures and personalities. What we found with Hoyman was that they immediately grasped both the substance of our organization (its strengths, weaknesses, and opportunities) as well as (and perhaps more importantly) the non - governmental focus on outcome over process that we believe is fundamental to our success with our constituents. Our communications with Hoyman staff were open, honest, cordial, and effective. Hoyrnan made extra effort to discuss issues with us to insure that we all on the same page, and was both fair in its assessments and responsive to our suggestions. The audit was completed well - within the expected time frame, the billings were as anticipated, and the presentation and resulting CAFR well- received. In a nutshell, I could not have been more pleased with the substance, style, timing, communications, and professional result the City achieved by the engagement of Hoyman- Dobson. I cannot help but believe that our experience mirrors that of other clients, and would encourage anyone considering their engagement to give them that opportunity. If I may be of further assistance in your evaluation, please feel free to contact me. Sincerely, Dr. Stephen R. Whitener Finance Director 2990 S. Atlantic Avenue, Daytona Beach Shores, F30 .2118 • Phone 386- 763 -5329; Fax 386 -763 -5320 Sworn Statement Pursuant to Section 287.133(3)(a), Florida Statutes, on Public Entity Crimes AD 01-02-06-10 This form must be signed and sworn to in the presence of a Notary Public or other official authorized to administer oaths. 1. This sworn statement is submitted to the City of Okeechobee (Print name of the public entity) by Deborah A. Goode, Audit Director /Owner (Print individual's name and title) for Hoyman Dobson (Print name of entity submitting sworn statement) whose business address is: 215 Baytree Drive Melbourne, Florida 32940 and (if applicable) its Federal Employer Identification Number (FEIN) is: 59- 2369629 (If the entity has no FEIN, include the Social Security Number of the individual signing the sworn statement: 2 I understand that a "public entity crime" as defined in Paragraph 287.133(1)(g), Florida Statutes, means a violation of any state or federal law by a person with respect to and directly related to the transaction of business with any public entity or with an agency or political subdivision of any other state or of the United States, including, but not limited to, any bid or contract for goods or services to be provided to any public entity or an agency or political subdivision of any other state or of the United States and involving antitrust, fraud, theft, bribery, collusion, racketeering, conspiracy, or material misrepresentation. 3. I understand that "convicted" or "conviction" as defined in Paragraph 287.133(1)(b), Florida Statutes, means a finding of guilt or a conviction of a public entity crime, with or without an adjudication of guilt, in any federal or state trial court of record relating to charges brought by indictment or information after July 1, 1989, as a result of a jury verdict, non -jury trial, or entry of a plea of guilty or nolo contendere. 4. I understand that an "affiliate" as defined in Paragraph 287.133.(1)(a), Florida Statutes, means: A. A predecessor or successor of a person convicted of a public entity crime; or B. An entity under the control of any natural person who is active in the management of the entity and who has been convicted entity crime. The term "affiliate" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who area active in the management of an affiliate. The ownership by one person of shares constituting a controlling interest in another person, or a pooling of equipment or income among persons when not for fair market value under an arm's length agreement, shall be a prima facie case that one person controls another person. A person who knowingly enters into a joint venture with a person who has been convicted of a public entity crime in Florida during the preceding 36 months shall be considered an affiliate. -34- 5. I understand that a "person" as defined in Paragraph 287,133(1)(e), Florida Statutes, means any natural person or entity organized under the laws of any state or of the United States with the legal power to enter into a binding contract and which bids or applies to bid on contracts for the provision of goods or services let by a public entity, or which otherwise transacts or applies to transact business with a public entity. The term "person" includes those officers, directors, executives, partners, shareholders, employees, members, and agents who are active in management of an entity. 6. Based on information and belief, the statement which I have marked below is true in relation to the entity submitting this sworn statement. (Indicate which statement applies). Neither the entity submitting this sworn statement, nor any of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, nor any affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. The entity submitting this sworn statement, or one or more of its officers, directors, executives, partners, shareholders, employees, members, or agents who are active in the management of the entity, or an affiliate of the entity has been charged with and convicted of a public entity crime subsequent to July 1, 1989. However, there has been a subsequent proceeding before a hearing officer of the State of Florida, Division of Administrative Hearings and the Final Order entered by the hearing officer of the State of Florida, Division of Administrative Hearings and the Final Order entered by the Hearing Officer determined that it was not in the public interest to place the entity submitting this sworn statement on the convicted vendor list. (Attach a copy of the final order). I understand that the submission of this form to the contracting officer for the public entity identified in paragraph one (1) above is for that public entity only and, that this form is valid through December 31 of the calendar year in which it is filed. I also understand that I am required to inform the public entity prior to entering into a contract in excess of the threshold amount provided in Section 287.017, Florida Statutes, for category two of any change in the information contained in this form. "detle, Signature Sworn to and subscribed before me this / day of , 20 / 0 . Personally known ✓ Produced Identification (Type of Identification) A 0tary Public - State of P/�,n, My Commission expires: /,? 7- ao/ 3 (Printed, Typed, or Stamped Commissioned Name of Not .r — 35 — JUDITH A. DURETTE �.`e• *= Commission # DD 845479 s., Expires January 27, 2013 Bonded Thru Troy Fain Insurance 800- 385 -7019 STATE OF FLORIDA USINESS AND PROFESS,IONiL, BOARD QF ACCOUNTANCY dim - 36 - ORET: UFbNLHY KLUUINtU tUY LHVV • SEp# Lo , 22'90'0550 DATE BATCH NUMBER L=ICENS -E- NBR°. . = . 9/21g08 !'881312516= AC4027= _.: :';I i.:., ::',,!. ,I,(i, if , PE_TRONF JUSOIN ANTHQNYj X46 =R3 VER PC}INT; VE ROCIKLED 3E FL. 3:�2i9 5,5. al„ L081234005.37 'LICENSE -=r-N 42.Q08 0;;88'133.,∎,3040 - AC- 60189.- I'd I;. RT'T�F,IEED = ACCQUNT�ANT Named f "be:'low'' - °IS +Z'CENSED Under'' 'Iie' p r,0 vi40' ons_ of- __Chagt_er 473 Expiration:date., DEC 31, 2010 MELBOURNE FL 32940 ISPLAY 2009 - 2010 THE PERSON(S), OR ENTITY BELOW: BREVARD' CO17N W U-SIj E-S-S7 1HA nL .,EiP 1 SUBJECT TO COUNTY ZONING RESTRICTIONS TAX RECEIPT SHOULD BE DISPLAYED ON PREMISES CHARLES W HOYMAN JR CPA 215 BAYTREE DR MELBOURNE FL 32940 -2027 my LOCATION: ar 215 BAYTREE DR UNINCORP. DISTR. 4, FL 32940 OWNED BY: CHARLES W HOYMAN JR INDIVIDUAL PROF'L LIC BUSINESS CLASSIFICATIONS, DISCLAIMERS, AND RELATED FEES: A000UN LNN- 71335 BUSINESS PERIOD: OCTOBER 1, 2009 - SEPTEMBER 30, 2010 EXPIRES: SEPTEMBER 30, 2010 ISSUED PURSUANT AND SUBJECT TO FLORIDA STATUTES AND BREVARD COUNTY CODE ISSUANCE DOES NOT CERTIFY COMPLIANCE WITH ZONING OR OTHER LAWS. BUSINESS TAX RECEIPT IS SUBJECT TO REVOCATION FOR ZONING VIOLATIONS, AND / OR FAILURE TO MAINTAIN REGULATORY PRE - REQUISITES AS REQUIRED FOR BUSINESS CLASSIFICATION(S), OR SUBSEQUENT ACTIVITIES. NOTIFY TAX COLLECTOR UPON CLOSING OF BUSINESS. A PERMIT IS REQUIRED TO ADVERTISE (Including with signage) "GOING OUT OF BUSINESS ". AC0004775 LISA CULLEN, CFC, Brevard County Tax Collector P 0 Box 2500, Titusville, Florida 32781 -2500 (321) 264 -6910 UPON A CHANGE OF OWNERSHIP OR LOCATION, BUSINESS TAX RECEIPT SHOULD BE TRANSFERRED WITHIN 30 DAYS. EXEMPTIONS: NON EXEMPT PENALTY: $.00 460101 ACCOUNTANT - C.P.A. 820005 2009 - 2010 RECEIPT AMT $37.00 BREVARD COUNTY BUSINESS TAX RECEIPT 2009 - 2010 SUBJECT ZONING TAX R CEIPTT SHOULD BE DIS LAY D ON P PREMISES THE PERSON(S), OR ENTITY BELOW: HOYMAN, DOBSON & CO PA 215 BAYTREE DR MELBOURNE FL 32940 -2027 LOCATION: 215 BAYTREE DR UNINCORP. DISTR. 4, FL 32940 OWNED BY: MAP imp HOYMAN, DOBSON & CO PA BUSINESS CLASSIFICATIONS, DISCLAIMERS, AND RELATED FEES: BUSINESS PERIOD: OCTOBER 1, 2009 - EXPIRES: PENALTY: 460198 PROF"L. BRANCH OFFICE 820005 2009 - 2010 RECEIPT AMT ACCOUNT NO. 42831 SEPTEMBER 30, 2010 SEPTEMBER 30, 2010 ISSUED PURSUANT AND SUBJECT TO FLORIDA STATUTES AND BREVARD COUNTY CODE ISSUANCE DOES NOT CERTIFY COMPLIANCE WITH ZONING OR OTHER LAWS. BUSINESS TAX RECEIPT IS SUBJECT TO REVOCATION FOR ZONING VIOLATIONS, AND / OR FAILURE TO MAINTAIN REGULATORY PRE - REQUISITES AS REQUIRED FOR BUSINESS CLASSIFICATION(S), OR SUBSEQUENT ACTIVITIES. NOTIFY TAX COLLECTOR UPON CLOSING OF BUSINESS. A PERMIT IS REQUIRED TO ADVERTISE (Including with signage) "GOING OUT OF BUSINESS ". LISA CULLEN, CFC, Brevard County Tax Collector P 0 Box 2500, Titusville, Florida 32781 -2500 (321) 264 -6910 UPON A CHANGE OF OWNERSHIP OR LOCATION, BUSINESS TAX RECEIPT SHOULD BE TRANSFERRED WITHIN 30 DAYS. EXEMPTIONS: NON EXEMPT — 38 — $37.00 $.00