HomeMy WebLinkAboutAgenda Fire Pension 070714THE RESOURCE CENTERS , LLC
4360 Northlake Boulevard, Suite 206 Palm Beach Gardens, FL 33410
Phone (561) 624-3277 Fax (561) 624-3278 WWW.RESOURCECENTERS.COM
PALM BEACH GARDENS FIREFIGHTERS’
PENSION FUND
Meeting of Monday, July 7, 2014
Location: City Hall, Council Chambers
Palm Beach Gardens City Hall
10500 North Military Trail
Palm Beach Gardens, FL 33410
Time: 9 AM
AGENDA
1. Call Meeting to Order
2. Public Comments
3. Minutes:
• Regular Meeting Held on March 10, 2014
• Special Meeting Held on April 17, 2014
• Regular Meeting Held on May 7, 2014
4. Investment Monitor Report: The Bogdahn Group (Dan Johnson)
• ICMA Update (Self-Directed DROP Accounts).
5. Attorney Report: Sugarman & Susskind, P.A. (Pedro Herrera)
6. Administrative Report: Resource Centers (Audrey Ross)
• Disbursements
• Benefit Approvals
• Auditor RFP Responses
7. Old Business
8. New Business
9. Other Business
• Service Provider Contract Review – Custodian
10. Next Scheduled Meeting: Wednesday August 7, 2014 @ 1PM.
11. Adjourn
PLEASE NOTE:
Should any interested party seek to appeal any decision made by the Board with respect to any matter considered at such meeting or hearing, he will need a
record of the proceedings, and for such purpose he may need to insure that a verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based. In accordance with the Americans With Disabilities Act of 1990, persons needing a special accommodation
to participate in this meeting should contact The Resource Centers, LLC no later than four days prior to the meeting.
PALM BEACH GARDENS FIREFIGHTERS’ PENSION FUND
MINUTES OF MEETING HELD
MARCH 10, 2014
A meeting of the Board of Trustees was called to order at 9:03AM at Council Chambers,
Palm Beach Gardens, Florida. Those persons present were:
TRUSTEES OTHERS
Rick Rhodes, Chairman Audrey Ross, Administrator
Tom Murphy, Secretary Pedro Herrera, Attorney
Ed Morejon Dan Johnson, Investment Consultant
Martin Cohen Mike Barry, Class Action Attorney
Allan Owens, Finance Director
PUBLIC COMMENTS
N/A
MINUTES
The Board tabled the minutes of the regular meeting held on January 10, 2013 until the
next meeting so that Mr. Cohen had more time to review them.
GRANT & EISNEHOFER PRESENTATION – MIKE BARRY
Mr. Barry introduced himself to the board and explained why he was here today and what
services his firm provides for this board. His firm represents share holders in litigation
and today he has a derivative case to bring forth to the board.
A motion was made by Ed Morejon to hold an executive closed door session
(beginning at 9:11AM). The motion was seconded by Tom Murphy and carried 4-0.
A motion was made by Tom Murphy to conclude the executive closed session
(closing at 9:42AM) and to reopen the regular meeting. The motion was seconded
by Marty Cohen and carried 4-0.
The Trustees had a lengthy discussion on the derivative case that was brought forth to
them today. The case is related to AmTrust, which is held by Dana Advisors.
A motion was made by Ed Morejon to retain Grant & Eisenhofer and to authorize
them to file the section 220 document/records request against AmTrust on behalf of
the Plan. The motion was seconded by Tom Murphy and carried 4-0.
Mr. Barry stated that he will bring back the findings of the 220 document to the board
and then they will go from there in regards to moving ahead with the case or not. In the
meantime the manager, Dana Advisors will need to hold onto at least 100 share in
AmTrust during this process. Mr. Herrera noted that holding onto 1 share is legal, but
not recommended.
A motion was made by Ed Morejon to authorize the Plan’s investment consultant to
send a letter to Dana explaining that they need to hold onto at least 100 shares in
AmTrust due to possible litigation. The motion was seconded by Tom Murphy and
carried 4-0.
2
INVESTMENT MONITOR REPORT: THE BOGDAHN GROUP (DAN
JOHNSON)
Mr. Johnson reviewed the December 31, 2013 quarterly report. He briefly reviewed the
market environment during the quarter and noted that all the indices where up with the
exception of bonds. At the end of the quarter the fund had $63M in assets, which was up
$4M since the end of the last quarter. The total return net of fees for the quarter was
6.72% versus the index at 6.27%, and for the one year to date they are also ahead of the
index net of fees at 20.70% versus 20.68%. Mr. Johnson reviewed all the managers’
performance during the quarter and noted that all the managers outperformed their
index’s except for Fiduciary Management and American Realty. Fiduciary Management
is currently holding onto a lot of cash and Mr. Johnson stated that they will keep an eye
on that.
Mr. Johnson reviewed the February 28, 2014 market update. For the quarter the fund is
up 1.1%, but for the fiscal year to date they are already up 8.1%. Mr. Johnson stated that
there are no recommendations at this time regarding any of the managers, but he did note
that the plan is holding a lot of cash at $850K. Therefore Mr. Johnson would recommend
moving a total of $525K out of cash and into the Templeton and Vanguard accounts.
A motion was made by Ed Morejon to authorize the transfer of $525K from the
plans cash account to be distributed to Templeton ($225K) and Vanguard ($300K).
The motion was seconded by Tom Murphy and carried 5-4.
Mr. Johnson updated the board on ICMA and where they stand with the contract. Mr.
Herrera stated that he has reviewed the ICMA contract and made some minor revisions to
it and then sent it back to ICMA to review and sign off on. He explained that the original
contract had an 8-10 year lock up so Mr. Herrera removed that language. He commented
that he will keep the board posted when he receives more information. The Trustees also
tabled the revised IPG until the ICMA contract is signed.
ATTORNEY REPORT: SUGERMAN & SUSSKIND (PEDRO HERRERA)
Mr. Herrera explained that recently a new law passed that now states that same sex
marriages are now granted in regards to benefits such as pensions and insurances. No
action is needed at this time (information purposes only)
Mr. Herrera stated the SB 246 & HB 509 is still pending up in the Legislative Session
and that he will update the board as more information becomes available.
Lastly Mr. Herrera noted that the Division of Retirement is holding a school from May
12-14, 2014.
ADMINISTRATIVE REPORT: RESOURCE CENTERS (AUDREY ROSS)
DISBURSEMENTS
The Board reviewed the disbursements presented for approval by the Administrator.
A motion was made by Tom Murphy to approve the disbursements as presented by
the Administrator. The motion was seconded by Marty Cohen and carried 4-0.
3
BENEFIT APPROVALS
The Board reviewed the application to enter the DROP for Richard Holder.
A motion was made by Tom Murphy to approve the application to enter the DROP
for Richard Holder. The motion was seconded by Ed Morejon and carried 4-0.
The Board reviewed the 2014 COLA increases for the active DROP members that were
prepared by the actuary.
A motion was made by Tom Murphy to approve the 2014 COLA increases for the
active DROP members as presented. The motion was seconded by Marty Cohen
and carried 3-0. (Mr. Morejon abstained from the vote since he was one of the
members on the COLA list).
Ms. Ross presented the board with the 2014/2015 fiduciary insurance renewal. Ms. Ross
stated that the fee for this year is $25.83 lower that last year. The Trustees’ had a brief
discussion on the type and amount of coverage and asked Ms. Ross to get quotes for
higher coverage next year ($2M & $5M).
Ms. Ross notified the board that she did get in hold of Mr. Zace regarding a refund of his
contributions, but she has not heard anything else since.
PRESENTATION OF THE 9/30/2013 AUDITED FINANIAL STATEMENTS:
CHERY, BEKAERT (JIM BURDICK)
Mr. Burdick welcomed himself back and reviewed the required communications letter.
He noted that all together an unmodified opinion was issued, which is the highest level
that can be issued. There were no deficiencies or material weaknesses found while
performing the audit as well. Mr. Burdick discussed the DROP liability and how it is
being accounted for in this report. Currently the DROP assets are considered a liability to
the plan and then when the member exits the DROP and takes their money out, then that
distribution is deducted from the plan’s DROP liabilities. Mr. Burdick explained that this
board had the same conversation last year regarding the DROP assets and ultimately
decided to continue to do it the same way. Also the Division of Retirement will accept
the report either way, so it is more of a housekeeping thing. Lastly Mr. Martin asked if
the audit should have a footnote reflected somewhere indicating that the board reduced
their assumed rate of return, although it was after September 30, 2013. Mr. Burdick
stated that the change will not have any impact on the numbers or the financials, but he
could add in the footnote if the board wished for.
Mr. Burdick noted that this is only a draft copy of the September 30, 2013 financial
statements that are being presented today and that the board will need to meet again
within a week or two to finalize them.
NEW BUSINESS
The Trustees reviewed the updated service provider contract list and the Sugarman &
Susskind contract. Mr. Rhodes noted that the Sugarman & Susskind contact was signed
in 2008 and the fee was guaranteed through December 31, 2010, and the fee has still
remained the same till this day. The Trustees concurred that they were pleased with their
legal services and do not want to make any changes at this time.
4
Mr. Morejon reviewed the 415 IRS rule and the timing of implementing the self-directed
DROP accounts. He explained that currently the plan has an IRS determination letter
which is good through 2016, and then they will re-file for another letter. Mr. Morejon
wants to know what would happen to the self directed accounts if the IRS was to
implement the 415 IRS rule in between the filings. Mr. Herrera explained that there are
ways to get around the 415 IRS rule, but in the meantime nothing has been approved yet.
Mr. Johnson presented the board with the Bogdahn fee proposal for monitoring the self-
directed DROP accounts. After review with his firm Mr. Johnson thinks the best way to
approach this is by increasing the annual rate altogether to $30K (from $22,500) and they
would guarantee this fee for the next 3 years. This new fee would include all the DROP
accounting and monitoring as well as all the other work they do for the board. Mr.
Johnson explained the Bogdahn Group is a hard dollar fee and by increasing the hard
dollar option, it actually decreased the fee as a percentage of assets. The Trustees
discussed the fee increase and noted that they are happy with the services.
A motion was made by Tom Murphy to approve and accept the Bogdahn fee
increase to $30K per year effective July 1, 2014. The motion was seconded by
Marty Cohen and carried 4-0.
Lastly Ms. Ross stated that for the reminder of 2014 we will move the quarterly meeting
dates (May, August & November 2013) back from 9AM to 1PM.
OLD BUSINESS
Mr. Morejon asked if the Actuarial Valuation report and the share account statements are
available yet. Ms. Ross stated that as of yesterday neither documents where available
yet.
Mr. Murphy stated that 2 members received incorrect benefit statements. Ms. Ross stated
that she will check with the Actuary and get them revised.
Lastly Mr. Morejon wanted confirmation that members are not allowed to withdrawal or
have access to their share or DROP accounts prior to them separating service. Mr.
Herrera confirmed that was correct. Members must be collecting a pension check in
order to have access to their DROP or share accounts.
OTHER BUSINESS
Mr. Rhodes acknowledged that the Division of Retirement has accepted and approved all
of the plans Actuarial Valuation Reports through September 30, 2011.
There being no further business, the meeting adjourned at 12:40PM.
Respectfully submitted,
Tom Murphy, Secretary
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S I Gordon & Company, PA
Certified Public Accountant
American Institute of
Certified Public Accountants
Florida Institute of
Certified Public Accountants
11555 Heron Bay Blvd., Ste. 200, Coral Springs, FL 33076
Voice (954) 485-5788 Fax (954) 485-8988
June 27, 2014
Board of Trustees for the
City of Palm Beach Gardens Firefighters’ Pension Fund
c/o Audrey Ross
Pension Resource Center, LLC
4360 Northlake Blvd. Ste 206
Palm Beach Gardens, FL 33410
Re: Request For Proposal for services
Dear Sirs/Madams,
I appreciate the board providing me the opportunity to introduce myself and offer my
services. My firm is a local CPA firm with the bulk of my clientele being located in
Miami-Dade, Broward and Palm Beach Counties. We currently have five full time
employees, including myself, and one part-time. Three of the employees and the part time
help are CPA’s. You may get more information about us at our website at
www.sigordoncpa.com.
The firm operated as a sole proprietorship from 1981 through 2012 in my own name
but incorporated in Florida in 2013. It has concentrated its expertise in the area of
employee benefit plans and organized labor. Approximately 65% of the practice is made
up of auditing employee benefit plans, pension plans (both municipal and private sector),
local unions, councils, PAC funds, and apprenticeship funds. Another 25% is made up of
accounting and tax services for those same types of entities and the last 10% is made up
of accounting and tax services performed for commercial enterprises and individuals.
The auditing services would be performed only by CPA’s experienced in working
with your type of organization and would be supervised by two people - me and Israel
Diaz, a CPA working full time for the firm. Mr. Diaz has approximately 25 years of
experience in the field of public accounting, the last 18 of which have been spent almost
exclusively doing certified audits of the types of organizations mentioned above as well
as preparing the related government filings. Mr. Diaz received a Bachelor of Business
Administration in accounting from Florida International University and a Master of
Professional Accounting degree from the University of Miami. In addition to working for
my firm, Mr. Diaz has worked for KPMG Peat Marwick as a senior accountant.
I graduated Florida International University in 1978 with a Bachelors degree in
accounting and earned a Master of Science in Taxation degree from the same university
in 1988. I have been practicing in the South Florida area continuously since 1978. I am a
member of the Florida Institute of CPA’s and the American Institute of CPA’s. I have
been a lecturer at numerous conventions of the International Foundation of Employee
Benefit Plans on various subjects relating to the accounting, auditing and taxation of
employee benefit plans. For a period of several years I was a member of its accountants’
committee, which designed the curriculum for their programs. I have also been a lecturer
for the Florida Division of Retirement Police Officers’ and Firefighters’ Pension Board
and am a member and occasional lecturer for the FPPTA.
My firm performs, on average, between 75 and 80 certified audits during each year. Of
those, approximately 60 are employee benefit plans of various types and included among
them are an average of 40 retirement plans of various types. I am delighted to provide
you with a sample of clients similar to yourselves as references.
I currently provide auditing services for:
1.The Dania Beach Police & Fire Pension (DB Plan). Please contact Cathy
David at (954) 921-0404
2.The City of North Miami Beach Police and Fire Pension and the City of North
Miami Beach General Employees Pension (Both DB Plans). Please contact
Martin Lebowitz at (305) 919-3724
3.The Sunrise General Employees Retirement System (DB Plan) – Please
contact Margie Adcock at (800) 206-0116.
4.The West Palm Beach Employees Retirement System (DB Plan) – Please
contact Audrey Ross at (800) 206-0116
5.The City of Aventura Police Pension (DB Plan) – Please contact Pete Prior at
(954) 730-2068.
6.The City of Miami Relief and Pension Plan (Share Plan) – Please contact Sarah
Wong at (305) 358-7853.
There are numerous retirement plans that I perform services for, similar to the ones
you are seeking. In addition to those listed above, I am currently the auditor for:
Cooper City Police Pension Plan (DB Plan)
Cooper City Firefighters Pension Plan (DB Plan)
Coral Gables Police Relief and Pension (Share Plan)
Coral Springs Police Pension Plan (DB Plan)
Coral Springs Firefighters Pension Plan (DB Plan)
Deerfield Beach Firefighters Pension Plan (DB Plan)
Deerfield Beach Non-Uniformed Employees Pension Plan (DB Plan)
Hallandale Police and Fire Pension Plan (DB Plan)
Hialeah Firefighters Retirement Plan (Share Plan)
Hialeah Police Pension Fund (Share Plan)
Lake Worth Firefighters Pension, Division I (DB Plan)
Lake Worth Firefighters Pension, Division II (Share Plan)
Lake Worth Police Pension Plan (DB Plan)
Lake Worth General Employees Pension Plan (DB Plan)
Lantana Firefighters Relief and Pension Plan (DB Plan)
Miami Beach Firefighters Relief and Pension Plan (Share Plan)
Miami Firefighters Relief and Pension Plan (DC Plan)
Miramar Firefighters Retirement Plan (DB Plan)
Miramar Retirement Plan for General Employees (DB Plan)
Miramar Management Retirement Plan (DB Plan)
North Naples Fire District Pension Plan (DB Plan)
South Miami Police Retirement Plan (Share Plan)
Sweetwater Police Retirement Plan (DB Plan)
My firm participates in the peer review program. The last peer review audit on my
firm was performed in 2011. The opinion was that a satisfactory system of quality
controls was in place and operating properly. The next peer review is scheduled to be
done later this year.
The firm carries professional liability insurance with a limit of $2,000,000 per claim
and in the aggregate. There is not now, nor has there ever been, litigation instituted or
threatened against my firm with regards to my professional practices. There have never
been any terminations, suspensions, censures, reprimands, probations or similar actions
against the firm or any employee of the firm by the Florida State Board of Accountancy.
We have no known affiliations or relationships with any organizations or individuals
that would cause a conflict of interest for us in performing your audit.
Since we work with so many different cities, as well as different administrators,
attorneys, investment advisors etc., including yours, we don’t anticipate any problems
with a transition. We always contact the prior auditor to find out if, in their opinion, there
were any problems or disagreements with the Board and to get a relatively few
documents but our contact with them is brief. We would expect to speak with your
administrator and professionals in the month of September or possibly earlier to prepare
for the audit. Since each of my staff is very familiar with your type of audit, they know
exactly what they’re looking for and who to ask for each type of document. In other
words, they can all “hit the ground running” even with a new audit. I encourage you to
contact trustees or administrators on the 3 Miramar plans or the Coral Gables Police
Pension to find out how the transition went with them, since they have only been our
clients for the last 2 years.
We would expect to start the work in August or, at the latest, early September. You
have asked that the audited financial statements be in your hands for review prior to
January 1, 2015. We can certainly meet that deadline, assuming that all accounting,
investment, benefit records, etc. are ready no later than mid-November.
Based on the information given to me by your administrator, we would be willing to
perform the certified audit of your financial statements as of and for the year ended
September 30, 2014 for $7,000. There would be an additional fee of $1,200 to prepare the
state annual report. This price would include attendance at one Trustees’ meeting per year
to review the financial statements and audit findings. We would also pass through to the
Fund any travel costs for any overnight stays associated with the audit, although no travel
is expected, appraisal of investment assets if necessary and costs of obtaining documents
and confirmations.
Assuming no change in the scope of the services or in procedures needed to comply
with both the State of Florida statutes and Generally Accepted Government Auditing
Standards, these fees would remain the same for the subsequent audit as well.
As far as other possible charges are concerned, it has always been my practice not to
charge for short telephone consultations as long as I am able to provide information or
advice quickly based on my experience with so many other plans. Documents and
information produced as a normal part of the audit process would be provided to your
other service providers at no additional fee.
Consulting on tax or other plan matters, whether by telephone or at meetings, that
requires research or some other time spent more than a short phone call, would be
charged at our standard hourly rates which range from $90 per hour to $125 per hour
depending on which of the firm’s personnel were to perform the work.
This proposal anticipates cooperation from all your service providers and yourselves
as well as an orderly set of records. If there were a significant problem with records or
any other matter, I would formulate a new fee and present it to you for approval before
proceeding. If we were to incur any out-of-pocket expenses or any of your service
providers were to charge me for providing records or the audit were to require me to
travel out of South Florida overnight, I would pass those costs on to the Trust in addition
to the fee.
I thank you once again for considering me and my firm for the auditing and report
preparation services you need. I look forward to meeting you all and, hopefully, working
with you.
Sincerely,
Steven Gordon
SG:jp
CITYOFPALMBEACHGARDENS
FIREFIGHTERS’PENSIONFUND
PROPOSALTOPROVIDE
FINANCIALANDCOMPLIANCEAUDITSERVICES
FortheYearsEnding
September30,2014,2015and2016
Submittedby:
Davidson,Jamieson&Cristini,P.L.
1956BayshoreBlvd.
Dunedin,Florida34698
Telephone:(727)734-5437
Fax:(727)733-3487
E-Mail:RAC@DJCPL.com
RichardA.Cristini,Partner
July3,2014
Davidson,Jamieson&Cristini,P.L.
CertifiedPublicAccountants
1956BayshoreBoulevard
Dunedin,Florida34698-2503
(727)734-5437or736-0771
FAX(727)733-3487Member
MembersoftheFirm AmericanInstituteof
JohnN.Davidson,CPA*,CVA CertifiedPublicAccountants
HarryB.Jamieson,CPA*FloridaInstituteof
RichardA.Cristini,CPA*,CPPT,CGFM CertifiedPublicAccountants
JeanineL.Bittinger,CPA,CPPT
LoraineM.Jones,CPA
July3,2014
BoardofTrustees
CityofPalmBeachGardensFirefighters’
PensionFund
c/oMrs.AudreyRoss
TheResourceCenters,LLC
4360NorthlakeBoulevard
Suite206
PalmBeachGardens,FL33410
DearBoardofTrustees:
Davidson,Jamieson&Cristini,P.L.ispleasedtopresentourqualificationstoprovidetheCityof
PalmBeachGardensFirefighters’PensionFundwithindependentFinancialandComplianceAudit
ServicesfortheyearsendingSeptember30,2014,2015and2016,togetherwithotherrelated
professionalservicesasmayberequestedfromtimetotime.Wearecommittedtomeetingthegoals
andobjectivesoutlinedbytheBoardofTrusteesinperformingourservices.Wehaveendeavoredin
thisproposaltobeasbriefandresponsivetoyourrequestaspossiblewhileemphasizingour
governmentalretirementsystemandgovernmentalauditexperienceandqualityofourfirm.
Weappreciatetheopportunitytopresentourprofessionalqualificationsandwelookforwardto
meetingwithyoutodiscusstheproposedengagement.
Sincerely,
CITYOFPALMBEACHGARDENSFIREFIGHTERS’PENSIONFUND
PROPOSALFORFINANCIALANDCOMPLIANCEAUDITSERVICES
FortheYearsEndingSeptember30,2014,2015and2016
TABLEOFCONTENTS
PAGE
FEEPROPOSAL.....................................................1
EXECUTIVESUMMARY.............................................2
CLIENTREFERENCES...............................................3
FIRMQUALIFICATIONS:
CertificateofAchievementfor
ExcellenceinFinancialReporting ..........................7
Introduction...................................................8
SizeandOrganizationalStructure..................................8
RelevantExperience...........................................10
FirmTrainingandContinuingProfessionalEducationProgram.........11
GFOACertificateofAchievement................................11
PeerReview..................................................11
Independence.................................................12
LitigationandDisciplinaryAction................................12
EqualEmploymentPolicy.......................................12
Malpractice/LiabilityInsurance...................................12
AdditionalInformation.........................................12
PeerReviewReport............................................13
ADDITIONALINFORMATION
PROPOSEDAUDITTEAM...........................................14
AUDITPROCEDURES...............................................15
RESUMES.........................................................17
SWORNSTATEMENTUNDERSECTION287.133(3)(a),
FLORIDASTATUTES,ONPUBLICENTITYCRIMES...................21
ADRUG-FREEWORKPLACE,INACCORDANCE
WITHSECTION287.087............................................23
i
FEEPROPOSAL
CITYOFPALMBEACHGARDENSFIREFIGHTERS’PENSIONFUND
PROPOSALFORFINANCIALANDCOMPLIANCEAUDITSERVICES
FortheYearsEndingSeptember30,2014,2015and2016
FEEPROPOSAL
AnnualAuditServices
YearendingSeptember30,2014 $13,000
YearendingSeptember30,2015 $13,700
YearendingSeptember30,2016 $14,400
AdditionalServicesasApprovedbyTheBoardofTrustees
TaskstobedeterminedbytheBoard $150 perhour
1
EXECUTIVESUMMARY
EXECUTIVESUMMARY
Davidson,Jamieson&Cristini,P.L.isexcitedtohavetheopportunitytopresentour
qualificationstoprovideprofessionalandcomplianceauditservicestotheCityofPalmBeach
GardensFirefighters’PensionFund.
Davidson,Jamieson&Cristini,P.L.isfamiliarwithandtrulyunderstandstheunique
characteristicsofgovernmentalretirementplans.Wearewellseasonedprofessionalswhohave
areputationfordeliveringqualityserviceinatimelymanner.Wewouldbeextremelyproudto
representyourPlaninthisauditbeforetheDivisionofRetirementoftheStateofFlorida.
WearecurrentlytheauditorsfortheFloridaPublicPensionTrusteesAssociation(FPPTA)and
haveservedasspeakersattheAssociation’strainingsessions.Inaddition,ourPublicPension
PlanAuditPartnershavereceivedtheircertificationasCertifiedPublicPensionTrusteesfromthe
FPPTA.
Further,weprovidefinancial,complianceandsingleaudit,strategicfinancialplanningandother
advisoryservicestoseventeenFloridamunicipalities,plansandspecialdistricts.Wealsoconduct
financial,complianceandsingleauditservicestoovertwentynot-for-profitcorporations.Our
firmisrepresentedontheGovernmentFinanceOfficersAssociation’sSpecialReviewCommittee
thatawardstheCertificateofAchievementforExcellenceinFinancialReportingaswellason
taskforcesestablishedbytheGovernmentalAccountingStandardsBoard.Werecognizethe
importanceofbeingrepresentedandheardintheestablishmentofaccountingpoliciesand
practices.
Weconsiderthisengagementveryimportantandarecommittedtoprovidingyouwitha
competent,stableprofessionalauditteam.Wearededicatedtoprovidingcontinuityinservice.
Weareabletoprovidewhatevertechnicalassistanceisrequested.Wearealsoreadilyavailable
toattendanymeetingsthatyouconsidernecessary,answerphonecalls,explaintechnicalissues
oranyothermatterthatyoudesire.
Ourphilosophyincludesconstantcommunicationswithmanagementthroughouttheengagement.
Wedonotfeelthatthereshouldbeanysurprisesespeciallyatreporttime.Atthesametime,we
respectthevalueofmanagement’stimeandotherresponsibilities.
2
CLIENTREFERENCES
CLIENTREFERENCES
Localgovernmentalandprivateindustryretirementplansandentitiesservedby Davidson,
Jamieson&Cristini,P.L.includethefollowingagenciesandcompanies:
GOVERNMENTALRETIREMENTPLANS
CityofOcoeeMunicipalGeneralEmployee’s
RetirementTrustFund,
FinancialandComplianceAudits
RussWagner
EngagementPartner:RichardA.Cristini
LocalLawPlan 2010-Present
(407)905-3100
FloridaPublicPensionTrusteesAssociation,
(200pensionplanmembers)
FinancialandComplianceAudits
Mr.RayEdmondson
EngagementPartner:RichardCristini
(904)386-1027 1994-Present
DelrayBeachMunicipalPoliceOfficers’and
Firefighters’PensionPlan,
FinancialandComplianceAudits
AnneWoods
EngagementPartner:JeanineL.Bittinger
LocalLawPlan 2010-Present
(561)243-4707
CityofWestPalmBeachFirefighters’PensionFund,
FinancialandComplianceAudits
AudreyRoss
EngagementPartner:RichardA.Cristini
LocalLawPlan 2000-Present
(561)459-3007
CityofSunrisePoliceOfficers’RetirementPlan,
FinancialandComplianceAudits
DavidM.Williams
EngagementPartner:JeanineL.Bittinger 2001-Present
LocalLawPlan
(954)520-5876
BoyntonBeachMunicipalFirefighters’PensionPlan,
FinancialandComplianceAudits
BarbaraLaDue
EngagementPartner:JeanineL.Bittinger
LocalLawPlan 2003-Present
(561)739-7972
3
CLIENTREFERENCES(CONTINUED)
GovernmentalorganizationsservedbyapartnerofDavidson,Jamieson&Cristini,P.L.include
thefollowing:
GOVERNMENTAL
TownofBelleair,
Financial,ComplianceandSingleAudits,
StrategicFinancialPlanning
MicahMaxwell
ReceivedCertificateofAchievementforExcellenceinFinancial
ReportingfortheyearsendedSeptember30,1988through2012.
EngagementPartner:RichardA.Cristini 1986-Present
(727)588-3769
TownofIndianShores,
FinancialandComplianceAudits,
BonnieDhonau
EngagementPartner:RichardACristini 1992-Present
(727)595-4020
PUBLICEMPLOYMENTRETIREMENTSYSTEMCLIENTS-
LASTFIVEYEARS
NewClients
VillageofNorthPalmBeachPoliceOfficers’
andFirefighters’PensionTrustFund 2010-Present
BoyntonBeachMunicipalPoliceOfficers’
PensionTrustFund 2011-Present
LakelandFirefighters’PensionTrustFund 2009-Present
LakelandPoliceOfficers’PensionTrustFund 2009-Present
HollywoodFirefighters’PensionTrustFund 2012-Present
NORETIREMENTSYSTEMCLIENTSHAVEBEENLOSTDURING
THEPASTTENYEARS.
4
CLIENTREFERENCES(CONTINUED)
Organizationsourfirm'sPartnersserveinthenot-for-profitsectorincludethefollowing:
NOT-FOR-PROFIT
WestCentralFloridaCouncil,Inc.,BoyScoutsofAmerica
FinancialandComplianceAudits,
Mr.BillDavis 1994-Present
(727)391-3800
Inaddition,ourfirm’sPartnersandManagershaveconductedseveralotherfinancialauditsfor
othernot-for-profitclientsduringthepasttwenty-eightyears.
5
FIRMQUALIFICATIONS
CITYOFPALMBEACHGARDENSFIREFIGHTERS’PENSIONFUND
FIRMQUALIFICATIONS
CERTIFICATEOFACHIEVEMENTFOREXCELLENCEIN
FINANCIALREPORTING
GovernmentFinanceOfficersAssociation
TheCertificateofAchievementforExcellenceinFinancialReportingisanawarddesignedto
recognizeandencourageexcellenceinfinancialreportingbystateandlocalgovernments.The
attainmentofaCertificateofAchievementrepresentsasignificantaccomplishmentfora
governmentanditsmanagement.
TheCertificateofAchievementforExcellenceinFinancialReportingProgram(Certificate
Program)wasestablishedbytheGovernmentFinanceOfficersAssociation(GFOA)in1945.The
GFOAinstitutedtheprogramtoencourageallgovernmentunitstoprepareandpublishaneasily
readableandunderstandablecomprehensiveannualfinancialreport(CAFR)coveringallfunds
andfinancialtransactionsofthegovernmentduringthefiscalyear.TheGFOAbelievesthat
governmentshaveaspecialresponsibilitytoprovidethepublicwithafairpresentationoftheir
financialaffairs.CAFRsgobeyondtherequirementsofgenerallyacceptedaccountingprinciples
(GAAP)toprovidethemanyusersofgovernmentfinancialstatementswithawidevarietyof
informationusefulinevaluatingthefinancialconditionofagovernment.
TobeeligibleforaCertificateofAchievement,areportmustbethepublishedCAFRofaunitof
governmentorapublicemployeeretirementsystem.EligibleCAFRsmustincludegeneral
purposefinancialstatementspresentedinconformitywithGAAP.Thesereportsarealsorequired
tohavebeenauditedinaccordancewithgenerallyacceptedauditingstandards,withtheauditor
takingatleast"inrelationto"responsibilityforcombining,individualfundandaccountgroup
presentations.ToearnaCertificateofAchievement,aCAFRshouldgiveaclearandthorough
viewofthegovernment'sfinances.Award-winningreportsshouldenhancethereader's
understandingoftheinformationrequiredbyGAAPforfairpresentationofthefinancial
statements,beefficientlyorganizedandadheretocertaingenerallyacceptedterminologyand
formattingconventions.TheCertificateProgramprovidesparticipantswithextensivetechnical
referencematerialongovernmentalaccountingandfinancialreportingtheory.Thismaterial
providesfinanceofficialswiththetoolstheyneedtoimprovetheirfinancialreportingtechniques.
SpecialReviewCommittee(SRC)membersreviewandvoteonreportssubmittedtothe
CertificateofAchievementProgram.SRCreviewersmusthavedemonstratedasuperior
understandingoffinancialreportingprinciplesforstateandlocalgovernments.RichardA.
CristiniandJeanineL.BittingerarebothSRCreviewers.
7
FIRMQUALIFICATIONS(CONTINUED)
Introduction
Davidson,Jamieson&Cristini,P.L.isdedicatedtotheprincipleofprovidingabroadrangeof
professionalservicestoclientsthroughateamapproachcombininggeneralistandspecialistskills.
Thespecialskillsofpersonnelinourpracticeareaofaudit,taxandbusinessadvisoryservices
includethosewhichwehavefoundnecessarytoservePublicPensionPlans,City,Countyand
Districtgovernments.
Wehavesummarizedsignificantaspectsofourexperiencesandprofessionalqualificationsin
PublicPensionPlans,municipalandcountygovernmentactivities,not-for-profitorganizations
andcommercialentities,aswellascertainbackgroundmaterialrelatingtoourfirm'spractice,
organizationandservices.
SizeandOrganizationalStructure
Davidson,Jamieson&Cristini,P.L.isalocalpublicaccountingandconsultingFlorida
ProfessionalAssociationservingclientsinbusiness,industryandgovernment.Ourfirmandall
assignedsupervisorystaff,asoutlinedintheProposedAuditTeamsection,areproperlylicensed
topracticeintheStateofFlorida.
Davidson,Jamieson&Cristini,P.L.wasfoundedin1982.Davidson,Jamieson&Cristini,P.L.
hasbuiltarespectedaudit,tax,financialandestateplanningpracticebyconsistentlyproviding
clientswithexcellentservicetailoredspecificallytomeettheirneeds.Thefirmhasmaintained
ahighlyrespectedandprestigiousreputationwithinthecommunityandthepublicaccounting
professionthroughouttheStateofFlorida.
Davidson,Jamieson&Cristini,P.L.offersawiderangeofexperienceatthestateandlocallevel.
Wehaveanexperiencedprofessionalstaffofthirteenmenandwomen,includingthreepartners.
Wewillbringtotheengagementateamofprofessionalshavingextensiveexperiencein
governmentalaccountingandauditing.OurfirmisamemberingoodstandingoftheAmerican
InstituteofCertifiedPublicAccountants,theFloridaInstituteofCertifiedPublicAccountants,
GovernmentFinanceOfficer'sAssociationandtheAssociationofGovernmentAccountantsand
adherestotheprofessionalstandardsofauditpracticeandconductprescribedbythesegroups.
Ourprofessionalsactivelyserveasmembersofstateandlocalprofessionalaccounting
organizationsandlocalgovernmentcommittees,aswellasothercivicandindustrygroups.
8
FIRMQUALIFICATIONS(CONTINUED)
Thecurrentmake-upofourlocalprofessionalstaffissummarizedasfollows:
Total Numberof
Total Audit CPAson
EmployeeClassification Staff Staff AuditStaff
Partners 4 2 2
Managers 2 2 2
ProfessionalStaff 3 3 2
Paraprofessionals 1 1 0
Administrative 2 0 0
Partners
Ourauditpartnersare"workingpartners"whowillprovideregularon-sitesupervisionand
communicationwithCityManagement.Partnersareresponsibleineverystepoftheplanning
process.
Managers
Auditmanagershaveanineteentothirty-eightyearsofexperience.Theywillmanagethe
day-to-dayactivitiesandwillgenerallyperformtheauditproceduresinauditareaswithhigh
inherentriskorsensitivity.Managersalsoareactivelyinvolvedintheplanningprocess.
9
FIRMQUALIFICATIONS(CONTINUED)
RelevantExperience
RichardCristiniandotherpartnersof Davidson,Jamieson&Cristini,P.L.haveaprovenrecord
ofclientserviceinmeetingtheaccounting,auditingandfinancialreportingneedsofnumerous
not-for-profitorganizationsandgovernmentalunitswhichinclude:
GovernmentalUnits
-PoliceandFirePensionPlans
-Cities
-FireDistricts
-LocalGovernmentalagenciesadministeringfederalandstategrants
-Countyagenciesandboards
-SpecialTaxingDistrictsanddevelopmentboards
-Publichousingandurbanrenewalprograms
10
FIRMQUALIFICATIONS(CONTINUED)
FirmTrainingandContinuingProfessionalEducationProgram
AllprofessionalCPAstaffpersonnelarerequiredtocompletethefirm’sannualin-house
orientationprogramsandattendandparticipateinatleastfortyhoursofregularlyscheduled
technicalprograms.
Partners,managersandseniorstaffattendtechnicalcoursessponsoredbythenationalorstate
societyofCPAsandtheFloridaGovernmentFinanceOfficersAssociationcontinuallytoupdate
andmaintaincurrentskillsinspecializedfieldsandmeetthestatededucationrequirementsofthe
AICPA’sprivatecompaniespracticesection,theGovernmentAuditingStandards(2007
Revision)andtheFloridaBoardofAccountancy.
InaccordancewithGovernmentAuditingStandards(2011Revision),allindividualsbi-annually
complete80hoursofContinuingProfessionalEducation(CPE)iftheyareresponsiblefor
planning,directingandconductingsubstantialportionsofourfirm’sfieldworkorreportingon
singleauditsorgovernmentalaudits.Atleast24ofthose80hoursareinsubjectsdirectlyrelated
tothegovernmentenvironmentandtogovernmentaccountingandauditing.
GFOACertificateofAchievement
Davidson,Jamieson&Cristini,P.L.partnerRichardCristinihasbeenassociatedwithninecities
orgovernmentaldistrictswhichholdorareawaitingreceiptoftheirGFOACertificateof
AchievementforExcellenceinFinancialReporting.Mr.CristiniisanSRCreviewerinthis
program(15years)andwasthereportdesignerandfinalreviewpartnerinallnineoftheabove
engagements.JeanineBittingerisalsoacertificatereviewer.
PeerReview
OurfirmisamemberofandmeetstherequirementsoftheFloridaInstituteofCertifiedPublic
AccountantsPeerReviewProgram.Memberfirmsundergoaperiodicpeerreviewbyother
qualifiedpractitioners,pertainingtothefirm'squalitycontrolinaccordancewithstandards
establishedbytheAICPA'sPeerControlStandardsCommittee.Ouron-sitereviewwascompleted
inNovember,2011andincludedareviewofspecificpension,governmentandnot-for-profitaudit
engagements.Acopyofthispeerreviewreportfollows.
11
FIRMQUALIFICATIONS(CONTINUED
Independence
Davidson,Jamieson&Cristini,P.L.isindependentofthePlanasdefinedbyGAO'sGovernment
AuditingStandards(2011Revision),andfurtherhasnorecordofsubstandardauditwork.
LitigationandDisciplinaryAction
Ourfirmanditspartnershavenorecordoflitigationrelatedtoprofessionalactivitiesduringthe
pastfiveyearsnoranyrecordofsubstandardworkduringthissameperiod.
EqualEmploymentPolicy
Davidson,Jamieson&Cristini,P.L.iscommittedtoequalemploymentopportunitiesand,
accordingly,hasimplementedanaffirmativeactionprogram.
Malpractice/LiabilityInsurance
Insuredwith:CNA
PolicyNumber:APL-140525590
LimitofLiability:$1,000,000
Deductible:$5,000
AdditionalInformation
Davidson,Jamieson&Cristini,P.L.iswillingtoacknowledgethatthefirmisafiduciaryofthe
fundasdefinedintheEmployeeRetirementIncomeSecurityActof1974(“ERISA”)andSection
122.656,FloridaStatutes.
ThefirmagreesthattheagreementshallbeconstruedunderthelawsofthestateofFloridaand
federallawwhereapplicable.
Thefirmagreesthatthevenueforanyjudicialproceedingswillbeinthecountyinwhichthe
Boardsits.
12
13
PROPOSEDAUDITTEAM
PROPOSEDAUDITTEAM
Weproposetoassignsomeofourmostexperiencedandcapableprofessionalstoassume
responsibilityforprovidingservicestothePlan.RichardA.Cristiniwillassumeoverall
responsibilityandJohnN.Davidsonwillserveasreviewpartner.JeanineL.Bittingerwill
managetheauditteaminthefield.
RichardA.Cristini,Directorof Davidson,Jamieson&Cristini,P.L.’sgovernmentauditing
department,hasthirty-fiveyears'experienceinthepracticeofpublicaccounting.Hehashad
responsibilityforavarietyofauditsinthepensionandstateandlocalgovernmentareaaswell
asinthefieldofnot-for-profitandregulatedindustries.Withinthefirmof Davidson,Jamieson
&Cristini,P.L.,Mr.CristiniservesastheDirectoroftheAuditDepartmentaswellastheQuality
ControlPartner.HeisamemberoftheAmericanInstituteofCertifiedPublicAccountants,the
FloridaInstituteofCertifiedPublicAccountants(FICPA),theGovernmentFinanceOfficers
AssociationandisaCertifiedGovernmentFinancialManager.Mr.Cristinialsoisanappointed
memberoftheSpecialReviewCommitteethatawardstheCertificateofAchievementfor
ExcellenceinFinancialReporting.
Astheengagementpartner,Mr.Cristiniwillbeinvolvedinandprimarilyresponsibleforall
servicesprovidedtothePlan.Hewillcoordinateallassignments,reviewandapprovework
schedules,engagementprogressandend-products,andwillparticipateinexitconferencesand
presentingourworktotheBoardofTrustees.
JohnDavidsonwillbethereviewpartnerfortheengagementandwillbeactivelyinvolvedwith
theconductofthisengagement.Heisamemberofthefirm'squalitycontrolteamandhasover
twenty-fiveyearsoftechnicalfundaccountingandauditexperience.
JeanineBittinger,auditpartnerwith Davidson,Jamieson&Cristini,P.L.,willberesponsiblefor
theday-to-daysupervisionofstaffpersonnelinspecificareasoftheauditengagement.Sheis
experiencedinauditengagementsforpublicpensions,governmental,not-for-profitand
commercialclientsandisactiveonFloridaGovernmentFinanceOfficersstatewidecommittees.
Ms.BittingerisaCPAwithsixteenyears'experienceinauditengagements.Shehasalsoworked
onauditsfornot-for-profitandcommercialclients.
Staffaccountantshavingretirementplanexperienceareavailableforpotentialassignmentandwill
beutilizedaccordingtoMr.Cristini’sdeterminationofneedordesirability.Inthismanner,the
fullresourcesofourfirmaremadeavailableinatimelycoordinatedprocesstothePlanand
shouldservetoprovidewhateverlevelofexperienceisrequired.
14
AUDITPROCEDURES
AUDITPROCEDURES
I.PlanningofEngagement
-PlanningmeetingwithBoardofTrustees/Administrator
-Budget,timingandextentofauditprocedures
-Assessauditriskandmateriality
-Issueengagementletter
-ObtainandexaminecopyofPlansandenablingOrdinances
IIFieldWork
-MailingconfirmationletterstoActuary,Attorney,Bank/Custodian
andotherrelevantparties.
-Obtainbank’s/custodian’sannualtruststatementsandorganizeinformat
forfinancialstatements.
-Independentlyverifythevaluation,completeness,ownershipandexistence
ofmaterialfinancialitemsonfinancialstatements.Determineifall
appropriatedisclosuresaremadeforfinancialstatements.
-Ensurethefollowingtransactionsandsituationsaredoneinaccordance
withtheSystem’sPlandocumentandenablinglegislation:
-City,Stateandmembercontributions
-NewentrantsintoPlan
-PlanmembersterminatingfromPlan
-Retirementofplanmembers
-DisabilityRetirements
-NewDropEntrants
15
AUDITPROCEDURES(CONTINUED)
III.Reporting
-Preparedraftfinancialstatementsandmanagementmemorandum
(discussionofreportableconditions,ifany,andoperationand
efficiencyopportunitiesinvolvingthePlan)
-Presentdraftfinancialstatementsandmanagementmemorandum
toBoard
-Modifydraftsasrequired
-Issuefinalreports
16
RESUMES
Followingaretheresumesofthepartnersandstaffwhowillparticipatein
theaudit.
AlloftheindividualsarelicensedtopracticeasCertifiedPublic
AccountantsinFlorida.TheEngagementPartnerandmanagerhaveover24
hoursofcontinuingprofessionaleducationdirectlyrelatedtogovernmental
accountingandauditingduringthepasttwoyears.
RICHARDA.CRISTINI,CPA,CGFM,CPPT
Partner:Davidson,Jamieson&Cristini,P.L.
Experience:
-Fortyyearsinmanagementandthepublicaccountingprofession
-PartnerinchargeofauditsfortheFloridaPublicPensionTrusteesAssociation,Inc,the
CityofTarponSpringsMunicipalFirefighters’PensionTrustFund,CityofNewPort
RicheyPoliceOfficers’PensionTrustFund,TownofIndianShoresPoliceOfficers’
PensionTrustFund,TownofIndianShores,TownofBelleair,andEastLakeTarpon
FireControlDistrictPensionTrustFund..
-ManagedauditsofseveralfederalandstategrantstoincludeSingleAudit,C.E.T.A.,
H.U.D.BlockGrant,E.P.A.Construction,FloridaH.R.S.,VermontandNorthCarolina
Grantprograms
-Managedannualauditsofmajorhealthcareclinicsandpubliccorporationsin
broadcasting;bankingandthesecuritiesindustryincludingappropriateS.E.C.and
N.A.S.D.reporting
-MemberoftheFloridaInstituteofCertifiedPublicAccountantsPeerReview
Committee.
-PerformsPeerReviews(TeamCaptain)underthePeerReviewProgramofthe
AmericanInstituteofCertifiedPublicAccountants
-Wroteandfacilitatedstrategicplanningprogramfornot-for-profitandlocal
governmentalunits
Education:
-JohnCarrollUniversity
-B.S.B.A.,majorinaccounting
-Over168hoursofcontinuingprofessionaleducationduringthepastthreeyears
including78hoursdirectlyrelatedtogovernmentalauditing
17
RICHARDA.CRISTINI,CPA,CGFM,CPPT
Professional:
-CertifiedPublicAccountantintheStateofFloridaandOhio
-CertifiedGovernmentFinancialManager
-CertifiedPublicPensionTrustee
-AmericanInstituteofCertifiedPublicAccountants
-FloridaInstituteofCertifiedPublicAccountants
C Member,1975-Present
C Consultationserviceformembersongovernmentalandnonprofitorganizations
-ContinuingProfessionalEducationInstructor
-GovernmentFinanceOfficersAssociation
C SpecialReviewCommittee-CertificateofAchievementforExcellencein
FinancialReportingProgram
-GovernmentalAccountingStandardsBoardTaskForceontheGASBStatementNo.34
ImplementationGuide
-MemberoftheFloridaInstituteofCertifiedPublicAccountantsPeerReview
Committee
CivicandCommunity:
-HonoraryBoardMemberofFoundationforMentalHealthinPinellas,Inc.
-FormerMemberofPinellasCounty,FloridaSocialActionandMentalHealthFunding
Committee
18
JOHNN.DAVIDSON,CPA
Partner:Davidson,Jamieson&Cristini,P.L.
Experience:
-Inexcessofthirtyyearsinthefieldofpublicaccounting
-Currentlyreviewingpartneronauditsofgovernmentalentitiesandnot-for-profit
entities
-Partnerinchargeofbusinessandtaxplanningforinexcessoftwohundredfifty
corporateclients
-Expertwitnessinlegalproceedingsregardingmaritalissues;businessvaluations;
incomeandlifestylematters
-Preparationofcorporate,partnershipandindividualincometaxes
Education:
-GraduatedUniversityofAlabamaMajorinAccounting
-Continuingeducationingovernmentalauditingandaccountingexceedscurrent
minimumannualrequirementsunderOMBCircularA-133
Professional:
-CertifiedPublicAccountantinthestatesofFlorida,AlabamaandNorthCarolina
-CertifiedBusinessValuationAnalyst
-CertifiedFamilyMediator
-CertifiedInsuranceMediator
-MemberAmericanInstituteofCertifiedPublicAccountants
-ChairmanFloridaInstituteofCertifiedPublicAccountantsonFederalTaxation
-SpeakerforFlorida,Georgia,SouthCarolinaandNorthCarolinaCPASocieties
continuingeducationprograms.
CivicandCommunity:
-MemberHeritageMethodistChurch
-FormerBoardMemberEastLakeWoodlandsCountryClub
-FormerTreasurerGermanAmericanBusinessChamberofFlorida
-FormerDirectorArthritisResearchInstituteofAmerica
19
JEANINEL.BITTINGER,CPA,CPPT
Partner:Davidson,Jamieson&Cristini,P.L.
Experience:
-Twenty-threeyearsinthepublicaccountingprofession
-ParticipatesinauditsfortheFloridaPublicPensionTrusteesAssociation,Inc.,Cityof
NewPortRicheyPoliceOfficers’PensionTrustFund,CityofPortSt.LuciePolice
PensionTrustFund,CityofTarponSpringsMunicipalFirefighters’PensionTrust
Fund,andCityofDunedinMunicipalFirefighters’PensionTrustFund
-Performedanddevelopedauditprogramsforoperationalandregulatorycompliance
audits
Education:
-UniversityofSouthFlorida,B.S.B.A.,majorinaccounting
-CompletedAdvancedProgramfromSouthwestSchoolofGovernmentFinance
(sponsoredbyTexasTechUniversity)
Professional:
-CertifiedPublicAccountantintheStateofFlorida
-AmericanInstituteofCertifiedPublicAccountants
-FloridaInstituteofCertifiedPublicAccountants
-FloridaGovernmentFinanceOfficersAssociation
-FloridaPublicPensionTrusteesAssociation
-CertifiedPublicPensionTrustee
-MemberofFloridaGovernmentFinanceOfficersAssociationConferenceCommittee
-EstablishedlocalGulfCoastChapterofFloridaGovernmentFinanceOfficers
Associationin1993
-InstituteofManagementAccountants(PinellasSuncoastChapter-PastPresident)
-DelegatetoFloridaCounciloftheInstituteofManagementAccountantsfrom1989-
Present
-ContinuingProfessionalEducationInstructor
20
APPENDIXA
SWORNSTATEMENTUNDERSECTION287.133(3)(a)
FLORIDASTATUES,ONPUBLICENTITYCRIMES
APPENDIXA
SWORNSTATEMENTUNDERSECTION287.133(3)(a),
FLORIDASTATUTES,ONPUBLICENTITYCRIMES
THISFORMMUSTBESIGNEDANDSWORNTOINTHEPRESENCEOFANOTARY
PUBLICOROTHEROFFICIALAUTHORIZEDTOADMINISTEROATHS.
1.ThisswornstatementissubmittedtoCityofPalmBeachGardensFirefighters’PensionFund
byJohnN.Davidson,Partner,forDavidson,Jamieson&Cristini,P.L.,whosebusiness
addressis1956BayshoreBlvd.,Dunedin.,Florida34698anditsFederalEmployer
IdentificationNumber(FEIN)is59-3417255.
2.Iunderstandthata"publicentitycrime"asdefinedinParagraph287.133(1)(g),Florida
Statutes,meanstheviolationofanystateorfederallawbyapersonwithrespecttoand
directlyrelatedtothetransactionofbusinesswithanypublicentityorwithanagencyor
politicalsubdivisionofanyotherstateoroftheUnitedStates,including,butnotlimitedto,
anybidorcontractforgoodsorservicestobeprovidedtoanypublicentityoranagencyor
politicalsubdivisionofanyotherstateoroftheUnitedStatesandinvolvingantitrust,fraud,
theft,bribery,collusion,racketeering,conspiracy,ormaterialmisrepresentation.
3.Iunderstandthat"convicted"or"conviction"asdefinedinParagraph287.133(1)(b),Florida
Statutes,meansafindingofguiltoraconvictionofapublicentitycrime,withorwithoutan
adjudicationofguilt,inanyfederalorstatetrialcourtofrecordrelatingtochargesbrought
byindictmentorinformationafterJuly1,1989,asaresultofajuryverdict,nonjurytrial,or
entryofapleaofguiltyornolocontendere.
4.Iunderstandthatan"affiliate"asdefinedinParagraph287.133(1)(a),FloridaStatutes,means:
A.Apredecessororsuccessorofapersonconvictedofapublicentitycrime;or
B.Anentityunderthecontrolofanynaturalpersonwhoisactiveinthemanagement
oftheentityandwhohasbeenconvictedofapublicentitycrime.theterm
"affiliate"includesthoseofficers,directors,executives,partners,shareholders,
employees,members,andagentswhoareactiveinthemanagementofanaffiliate.
Theownershipbyonepersonofsharesconstitutingacontrollinginterestin
anotherperson,orapoolingofequipmentorincomeamongpersonswhennotfor
fairmarketvalueunderanarm'slengthagreement,shallbeaprimafaciecasethat
onepersoncontrolsanotherperson.Apersonwhoknowinglyentersintoajoint
venturewithapersonwhohasbeenconvictedofapubliccrimeinFloridaduring
thepreceding36monthsshallbeconsideredanaffiliate.
21
22
APPENDIXB
ADRUG-FREEWORKPLACE,
INACCORDANCEWITHSECTION287.087
APPENDIXB
ADRUG-FREEWORKPLACE,INACCORDANCEWITHSECTION287.087
Preferenceshallbegiventobusinesseswithdrug-freeworkplaceprograms.Whenevertwoor
morebidswhichareequalwithrespecttoprice,quality,andservicearereceivedbythePlanfor
theprocurementofcommoditiesorcontractualservices,abidreceivedfromabusinessthat
certifiesthatithasimplementedadrug-freeworkplaceprogramshallbegivenpreferenceinthe
awardprocess.Establishedproceduresforprocessingtiebidswillbefollowedifnoneofthetied
vendorshaveadrug-freeworkplaceprogram.Inordertohaveadrug-freeworkplaceprogram,a
businessshall:
1)Publishastatementnotifyingemployeesthattheunlawfulmanufacture,distribution,
dispensing,possession,oruseofacontrolledsubstanceisprohibitedintheworkplaceand
specifyingtheactionsthatwillbetakenagainstemployeesforviolationsofsuchprohibition.
2.Informemployeesaboutthedangersofdrugabuseintheworkplace,thebusiness'spolicyof
maintainingadrug-freeworkplace,anyavailabledrugcounseling,rehabilitation,and
employeeassistanceprograms,andthepenaltiesthatmaybeimposeduponemployeesfor
drugabuseviolations.
3)Giveeachemployeeengagedinprovidingthecommoditiesorcontractualservicesthatare
underabidacopyofthestatementspecifiedinItem#1above.
4)InthestatementspecifiedinItem#1above,notifytheemployeesthat,asaconditionof
workingonthecommoditiesorcontractualservicesthatareunderbid,theemployeewill
abidebythetermsofthestatementandwillnotifytheemployerofanyconvictionof,orplea
ofguiltyornolocontendereto,anyviolationofchapter893orofanycontrolledsubstancelaw
oftheUnitedStatesoranystate,foraviolationoccurringintheworkplacenolaterthanfive
(5)daysaftersuchconviction.
5)Imposeasanctionon,orrequirethesatisfactoryparticipationinadrugabuseassistanceor
rehabilitationprogramifsuchisavailableintheemployee'scommunity,byanyemployeewho
isconvicted.
6)Makeagoodfaithefforttocontinuetomaintainadrug-freeworkplacethrough
implementationofthissection.
Asthepersonauthorizedtosignthestatement,
Icertifythatthisfirmdoesfullycomplywiththe
aboverequirements.
23
Proposal to provide auditing services
City of Palm Beach Gardens
Firefighters’ Pension Fund
July 3, 2014
Prepared by:
James L. Burdick
Partner
P 407.423.7911
E jburdick@cbh.com
cbh.com
800 North Magnolia Avenue, Suite 1300, Orlando, FL 32803 | P 407.423.7911 | cbh.com
July 3, 2014
Board of Trustee’s
City of Palm Beach Gardens Firefighters’ Pension Fund
c/o Pension Resource Center
4360 Northlake Blvd. Suite 206
Palm Beach Gardens, FL 33410
Dear Board of Trustee Members:
Cherry Bekaert LLP (Cherry Bekaert) is pleased to present our proposal to provide employee benefit
plan audit services to the City of Palm Beach Gardens Firefighters’ Pension Fund (the “Fund”). Having
considerable experience serving government pension plans of similar size and complexities, including
the City of Palm Beach Gardens Firefighters Pension Fund and Police Officers’ Pension Fund, we are
well aware of the effort required and have the resources available to perform an effective audit of your
financial statements in accordance with applicable requirements.
Currently, Cherry Bekaert provides audits and other professional services to more than 300 benefit plan
clients. Cherry Bekaert established an Employee Benefit Plan Audit Group to provide specialized
assistance with technical questions throughout each benefit plan audit and quality review upon
completion of each benefit plan audit. While there are many reasons for the Fund to select Cherry
Bekaert, we feel that the following areas truly set us apart from the competition:
An experienced engagement team. Our proposed engagement team members have direct
experience with Florida public employee retirement systems.
Extensive resources. In addition to an experienced engagement team, the Fund will have
access to all the Firm’s regional resources, including the Firm’s Employee Benefit Plan Audit
Group. The knowledge and experience gained in servicing other benefit plans locally and
through our regional footprint will enable us to focus on meaningful issues during your audit
engagement.
A well-defined audit plan. As a result of our extensive experience with employee benefit plan
audits, we have developed an innovative approach that anticipates audit concerns by
identifying and controlling audit risks specific to benefit plans. Using a balanced set of
procedures, our auditors exercise professional judgment in evaluating the effectiveness of
control systems in place with regard to plan operations. Our approach emphasizes
involvement of benefit plan audit specialists in all aspects of planning, managing and
conducting the engagement.
Commitment to the Fund. The Fund would be an important client to the Florida practice.
Cherry Bekaert will dedicate the resources necessary to complete the audit in time to meet the
Fund’s filing deadlines.
Reasonable fees. We are sensitive to our responsibility for controlling costs associated with
providing professional services. We are also aware of your interest in obtaining the best
available services at a reasonable cost. In response, we have designed an approach for your
engagement that is highly efficient and cost effective.
Our proposal is subject to the successful completion of our client acceptance process and is valid for a
period of 120 days from the closing date of the request for proposals.
We thank you for the opportunity to present our professional qualifications. We look forward to
continuing to serve the Fund.
Please feel free to contact me at 407.423.7911 if you have any questions regarding this proposal.
With best regards,
Cherry Bekaert LLP
James L. Burdick
Partner
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
4
Table of Contents
........................................................................................................................................... 5 I.Identification of Bidder
a) Bidder Information ............................................................................................................................................ 5
b) Firm Description ................................................................................................................................................ 5
c) The Fund’s Proposed Engagement Team ........................................................................................................ 8
d) Experience and References ............................................................................................................................ 13
e) Understanding of the Work to be Performed ................................................................................................... 16
Audit Approach ............................................................................................................................................... 16
Technical Approach ........................................................................................................................................ 17
I. Planning and Inherent Risk Assessment .................................................................................................... 18
II. Internal Control Documentation, Verification and Testing ........................................................................... 19
III. Risk Assessment Synthesis ....................................................................................................................... 20
IV. Compliance ............................................................................................................................................... 21
V. Further Audit Procedures ........................................................................................................................... 21
VI. Reporting ................................................................................................................................................... 22
Communication Philosophy ............................................................................................................................ 24
Use of Technology/EDP Software .................................................................................................................. 24
Additional Services ......................................................................................................................................... 25
f) Public Entity Crimes ........................................................................................................................................ 25
..................................................................................................................................................................... 26 II.Timing
........................................................................................................................................................................ 27 III.Fees
............................................................................................................................................ 28 IV.Required Documents
Insurance ................................................................................................................................................................. 28
Public Entity Crimes – Sworn Statement ................................................................................................................. 28
Peer Reviews .......................................................................................................................................................... 28
Appendix A. Peer Review .............................................................................................................................................. 29
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
5
I.Identification of Bidder
a) Bidder Information
Company: Cherry, Bekaert LLP
Name: James L. Burdick
Job Title: Partner
Home Office Address &
Phone #:
800 N. Magnolia Ave, Suite 1300
Orlando, FL 32803
(407) 423-7911
Office Providing Services
Address & Phone #:
800 N. Magnolia Ave, Suite 1300
Orlando, FL 32803
(407) 423-7911
b) Firm Description
About Cherry Bekaert LLP
Established in 1947, Cherry, Bekaert & Holland, L.L.P. (CB&H) has grown to become one
of the nation’s largest accounting and consulting firms. With a staff complement of nearly
1,000 people, CB&H distinguishes itself by offering the highest caliber of personal
attention, responsiveness, and accessibility our clients expect and deserve — combined
with the specialized talent and resource depth needed to meet their business and financial
objectives while minimizing compliance headaches.
National and International Resources
Cherry Bekaert is an independent member of Baker Tilly International, a global alliance of
more than 150 premier accounting and consulting practices focused on serving the global
needs of growing entities. As the 8th largest network in the world, ranked by fee income,
Baker Tilly International has over 600 offices in 120 countries with a staff of more than
25,000.
Cherry Bekaert is a founding member of this alliance, which offers a powerful fusion of
local expertise with global reach. Baker Tilly International members — all prominent
practices in their home markets — are skilled at helping enterprises compete effectively in
the global arena.
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
6
Our Added Value
Headquartered in Richmond, Virginia, Cherry Bekaert services local, national and global
clients from practice offices throughout the Southeast. Clients choose us to be their
accounting firm because we provide the depth of specialized knowledge and experience of
a national firm, with personal attention and highly proactive service. The Fund will have
access to the level of resources and capabilities of a national firm while enjoying the
benefits of:
direct partner involvement;
staff continuity;
proactive communication;
responsiveness; and
tailored, streamlined service plans
Local Service Commitment
We currently have offices in Orlando, Tampa, Coral Gables and Ft. Lauderdale. Public
sector, including services to government entities, comprises the largest industry segment
served by our Florida practice.
The principal office responsible for providing services to the Fund will be the Orlando office,
which represents the largest government practice in our Firm and includes a significant
concentration of highly knowledgeable government professionals with extensive
experience.
Overview of the Relevant Firm's Business Units
Audit and Attest Services
Our audit philosophy is based on integrity, objectivity, independence and strict adherence
to all professional standards, regulations and laws. We serve the interests of our clients,
including owners, investors and other stakeholders, in accordance with the appropriate
professional standards. The primary objective of every audit process is to express an
opinion on the fair presentation of the financial position and operational results of our
clients.
In order to accomplish our audit objectives in a highly effective and meaningful manner,
Cherry Bekaert employs an approach to auditing that is tailored to each individual client
and the industry in which it operates.
Proper and accurate planning, testing and reporting, with a strong emphasis on risk
assessment, define our audit philosophy. Our clients benefit from the enhanced
communications and streamlined internal processes of Cherry Bekaert’s proprietary
technology systems, audit protocols and processes.
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
7
As a full-service business advisor to our clients, we offer a wide spectrum of related
services that help with compliance, operational efficiency and profit maximization:
Financial statement audits
Compilations and reviews
SEC reporting and compliance
Forecasts and projections
Agreed-upon procedures
Reports on internal controls
Process and procedure reviews
Performance measurement, including benchmarking
Assurance of regulatory requirement compliance
Accounting Services
Cherry Bekaert assists clients through the full life cycle of their business. From startup to
expansion, maturation to disposition, Cherry Bekaert is there to provide business advice.
In our role as "most trusted" business advisor, we invest time and resources with our
clients to fully understand their business and industries. This specialized knowledge within
the Firm, combined with broad general business experience developed across our regional
network, uniquely qualifies Cherry Bekaert to provide proprietary and customized solutions
that can help your business succeed.
The first step in establishing a successful business starts with a practical foundation of
meaningful data from which our clients can make informed strategic decisions. Cherry
Bekaert can develop accounting and financial reporting systems to organize business
information. In doing so, we also build a lasting relationship that allows our clients to focus
on larger issues.
Cherry Bekaert offers a full suite of accounting services, including:
Accounting system consulting, design and implementation
Development of accounts payable, accounts receivable, payroll and general
ledger systems
Budgets and financial statements
Cash flow statements
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
8
c) The Fund’s Proposed Engagement Team
Perhaps more important than our extensive relevant experience and our customized
approach is the quality of your engagement team. Cherry Bekaert offers the Fund a
seasoned professional management team with extensive experience and specialized
knowledge serving public sector employee benefit plans. Each member of our proposed
engagement team has experience serving the Fund.
Resumes for our proposed engagement team are provided on the following pages.
City of Palm Beach Gardens
Firefighters' Pension Fund
Jim Burdick
Engagement Partner
Peter Alfele
Quality Control Review Partner
Alisa Train
Senior Manager
Richard Crawford
Audit Staff
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
9
Jim Burdick, CPA – Engagement Partner
Jim is a licensed Certified Public Accountant in the states of Florida,
Wisconsin and Illinois with over 30 years of experience serving the
assurance and accounting needs of public sector clients. His services
focus on auditing, accounting, and consulting for governmental entities,
government pension plans, governmentally funded agencies and not-for-
profit organizations. Jim currently serves as engagement partner or
quality review partner for more than 40 public sector organizations, in addition to
serving numerous other such organizations throughout his career.
As engagement partner, Jim will be responsible for the overall audit engagement. He will
coordinate the right resources at the right time to best serve your needs. He offers
innovative business advice and high-quality, proactive service.
Jim received his Bachelors of Business Administration from the University of Wisconsin
Oshkosh. He is a member of the American Institute of Certified Public Accountants
(AICPA), Florida Institute of Certified Public Accountants (FICPA), Florida Government
Finance Officers Association (FGFOA), and Government Finance Officers Association
(GFOA).
Relevant Experience:
ATU Local 1596 Pension Plan
ATU Local 1577 Pension Plan
Boynton Beach General Employees’
Retirement System
City of North Port Firefighters Pension
Fund
Palm Beach Gardens Firefighters’
Pension Fund
Palm Beach Gardens Police Officers’
Pension Fund
Retirement System for the General
Employees of the Utility
South Miami Pension Plan
Town of Jupiter Police Officers
Retirement Fund
Village of North Palm Beach Fire and
Police Pension Fund
West Palm Beach Restated General
Employees’ Retirement System
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
10
Peter Alfele, CPA – Quality Review Partner
Peter is a Certified Public Accountant with 13 years of diversified
experience providing audit and accounting services to a variety of
commercial enterprises and public sector entities. As an audit partner
with Cherry Bekaert for the last 5 years, Peter concentrates his practice
by focusing on the audit needs of employee benefit plans, commercial
clients, specifically closely held, middle-market businesses.
Peter will be responsible for a second review of the financial statements and audit files. He
will provide support to the Fund's engagement team and address any accounting, auditing
and compliance issues as they arise.
Based in the Firm’s Hampton Roads practice, Peter serves as engagement partner for
many of the office’s audit and review engagements. He provides a full range of audit
services to clients in employee benefit plans, government contracting, manufacturing,
wholesale, distribution and retail industries. He is also responsible for the detailed, initial
and pre-issuance reviews for many attest and tax clients.
As a member of the Firm’s Commercial Business Group, Peter assists with the
dissemination of relevant tax and audit information to clients in the commercial industry
through the Firm’s proprietary, in-house newsletter, Mid-Market Monitor and various
seminars.
Peter received his Bachelors of Science in Accounting from Louisiana Tech University and
his Master of Science in Business Administration with a concentration in accounting from
Louisiana Tech University. He is a member of the American Institute of Certified Public
Accountants (AICPA), Florida Institute of Certified Public Accountants (FICPA), Virginia
Society of Certified Public Accountants (VSCPA), Central Business District Association,
Hampton Roads Economic Development Alliance and the Neptune Festival and Virginia
Beach Vision.
Relevant Experience:
ATU Local 1596 Pension Plan
ATU Local 1577 Pension Plan
Boynton Beach General Employees’
Retirement System
City of North Port Firefighters Pension
Fund
Palm Beach Gardens Firefighters’
Pension Fund
Palm Beach Gardens Police Officers’
Pension Fund
Pompano Beach Police and
Firefighters’ Retirement System
Retirement System for the General
Employees of the Utility
South Miami Pension Plan
Town of Jupiter Police Officers
Retirement Fund
Village of North Palm Beach Fire and
Police Pension Fund
West Palm Beach Restated General
Employees’ Retirement System
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
11
Alisa Train, CPA – Senior Manager
Alisa has more than 30 years of experience practicing public
accounting in our Orlando office, including audit and tax compliance,
attestation and consulting services.
Alisa will lead the direct management of planning, directing, workpaper
review and report preparation.
Alisa has a Bachelor of Science in Political Science from Stetson University and a Bachelor
of Science in Business Administration with a concentration in Accounting from the
University of Central Florida. She is licensed to practice as a Certified Public Accountant in
the state of Florida. She is a member of the American Institute of Certified Public
Accountants (AICPA), the Florida Government Finance Officers Association (FGFOA) and
the Florida Institute of Certified Public Accountants (FICPA).
Relevant Experience:
ATU Local 1577 Pension Plan
ATU Local 1596 Pension Plan
Boynton Beach General
Employees’ Retirement System
City of North Port Firefighters
Pension Fund
Palm Beach Gardens Firefighters’
Pension Fund
Palm Beach Gardens Police
Officers’ Pension Fund
Retirement System for the General
Employees of the Utility
South Miami Pension Plan
Town of Jupiter Police Officers
Retirement Fund
Village of North Palm Beach Fire
and Police Pension Fund
West Palm Beach Restated General
Employees’ Retirement System
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
12
Richard Crawford – Audit Staff
He has approximately one year of experience auditing public sector
entities including government pension plans and other local
governments for Cherry Bekaert. He will be responsible for on-site
fieldwork and the audit services to be performed for the Fund.
Richard received his Bachelor of Science in Physics from Texas A&M
University, his Master of Business Administration from the University of
Dallas, and his Master of Science in Accounting from the University of Central Florida.
Relevant Experience:
ATU Local 1577 Pension Plan
ATU Local 1596 Pension Plan
Boynton Beach General
Employees’ Retirement System
Palm Beach Gardens Firefighters’
Pension Fund
Palm Beach Gardens Police
Officers’ Pension Fund
Retirement System for the General
Employees of the Utility
South Miami Pension Plan
Town of Jupiter Police Officers
Retirement Fund
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
13
d) Experience and References
Florida Government Pension Plans
Below is a list of our current Florida engagements with public employee retirement systems
on which the personnel identified in this proposal have served. The experiences we have
gained through serving both government and large employee benefit plan clients will
enable us to serve the Fund effectively and cost-efficiently.
Palm Beach Gardens Firefighters’ Pension Fund
Palm Beach Gardens Police Officers’ Pension Fund
Town of Jupiter Police Officers Retirement Fund
Boynton Beach General Employees’ Retirement System
ATU Local 1596 Pension Plan
ATU Local 1577 Pension Plan
Retirement System for the General Employees of the Utility Board of the City of
Key West
South Miami Pension Plan
As indicated by clients listed above, our practice is very knowledgeable in serving
government pension plans, and our local professionals are very specialized in this area.
Client Palm Beach Gardens Police Officers Pension Fund, Florida
Address c/o Pension Resource Center
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
Contact Information Audrey Ross, Plan Administrator – 561.624.3277
Scope Financial statement and GAS audit
Date Fiscal year-end September 30, 2001 - present
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
14
Client Town of Jupiter Police Officers’ Retirement Fund
Address c/o Pension Resource Center
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
Contact Information Nick Schiess, Plan Administrator – 561.624.3277
Scope Financial statement and GAS audit
Date Fiscal year-end September 30, 2008 - present
Client Retirement System for General Employees, Florida
Address Board of the City of Key West
PO Box 6100
Key West, FL 33041-6100
Contact Information Cindy McVeigh, Supervisor of Accounting – 305.295.1016
Scope Financial statement and GAS audit
Date Fiscal year-end September 30, 2006 - present
Employee Benefit Audit Services Group
Cherry Bekaert has audited employee benefit plans for most of its 60 years of existence,
and this experience will be used to help you take advantage of every opportunity to
succeed. Over the past several decades, changes in the regulatory environment and the
profession have significantly impacted the audits of employee benefit plans. As a result,
Cherry Bekaert recognized that employee benefit plan audits were different from other
audits and created its Employee Benefit Plan Audit Group.
A hallmark of this group is its dedication to employee benefit plan audit clients. Cherry
Bekaert currently audits over 300 benefit plans, including more than 75 employee benefit
plans out of our Florida Practice. This is an important business segment for the Firm and
we strive to continue to forge relationships with organizations like the Fund.
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
15
Cherry Bekaert also provides employee benefit plan administration services to a number of
plans where we do not provide attestation services to the plan or plan sponsor. This gives
our audit professionals access to individuals who perform plan administration should we
have administration-related questions.
Our dedication to our Employee Benefit Plan Audit practice enables us to maximize our
service and efficiency to our employee benefit plan clients.
Government Services Group
The coordination and allocation of resources and talents is accomplished through the
Government Services Group (GSG). The GSG is responsible for assuring seamless
service delivery, quality control and continuing education for government engagements
throughout the Firm. Our commitment to government service is demonstrated by our
sustained growth in this practice area as well as the depth of experience of personnel in
this group. As a result of this commitment, our personnel have extensive knowledge of the
methods and techniques applicable to government auditing, and have applied this
knowledge successfully for many clients. Currently, over 120 professionals provide
services to government entities.
We are committed to providing auditing and consulting services to governmental
organizations. We audit over 100 local governments, authorities and public agencies
throughout the Southeastern United States. In addition, the Firm conducts performance
audits and provides consulting services to numerous other government organizations
throughout the Southeast.
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
16
e) Understanding of the Work to be Performed
This engagement will include an audit of the Fund’s financial statements as of September
30 in accordance with generally accepted auditing standards as established by the
American Institute of Certified Public Accountants (AICPA), Florida Statutes and
Government Auditing Standards issued by the Comptroller General of the United States.
Our audit of the financial statements will include tests of the accounting records and such
other auditing procedures as shall be considered necessary in the circumstances.
If appropriate, Cherry Bekaert will issue a Management Letter to the Board at the
completion of each fiscal year audit. The letter will report on internal control deficiencies if
any are discovered during the audit and may include recommendations that may reduce
cost and improve efficiency in operations.
Cherry Bekaert will also provide the following to the Fund:
a) Attend at least one meeting per year to present the audit;
b) Provide consulting services regarding tax matters, on an hourly basis;
c) Coordinate with other service providers regarding other annual plan reports and
necessary governmental filings;
d) Provide telephone consultations on plan matters, on an hourly basis;
e) Other duties as required by the Trustees, on an hourly basis;
Audit Approach
The Fund will receive service from an experienced service team from Cherry Bekaert that
is familiar with the Fund’s operations and has considerable additional experience serving
public retirement systems. Our engagement partners, senior manager and staff all have
experience serving numerous public retirement systems throughout Florida. In addition,
our audit programs and processes have been tailored specifically for the Fund to maximize
efficiency and effectiveness and to ensure that the Fund’s time and effort associated with
our audit is minimized and concentrated on relevant matters.
Planning
We put a major emphasis on pre-audit planning, which includes a meeting with the Fund’s
representatives, if necessary. After our pre-audit conferences, we will know exactly what to
expect from the Fund’s staff and the Fund’s staff will know exactly what to expect from us.
Proposal to provide audit services
City of Palm Beach Gardens Firefighters’ Pension Fund
17
Technical Approach
The Cherry Bekaert Team’s financial statement audit approach is designed to efficiently
and effectively complete each audit phase. Our technical approach has been designed to
not only comply with current risk-based audit standards, but also provide you with useful
feedback on your internal control environment and processes that focuses on the key
controls for each process. Our financial statement and audit methodology consists of the
following five phases:
Planning and inherent risk assessment
Internal control documentation, verification and testing
Risk assessment synthesis
Compliance testing
Further audit procedures (Substantive Testing)
Reporting
The following graphic illustrates how our inherent risk assessment combines with our
internal control documentation and testing to generate our Risk Assessment Synthesis,
which provides our detailed guidance for customizing our further audit procedures based
on our risk assessments.
In the following sections, we discuss specific tasks performed during each phase and also
discuss how testing of information systems controls is integrated into the financial
statement audit.
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I. Planning and Inherent Risk Assessment
The planning phase is the foundation to a quality audit. Proper planning is essential to
achieving audit efficiency and effectiveness. During the planning phase, we will develop
our overall strategy for expected scope and timing of evidence gathering and audit testing.
Planning is an iterative process and, thus, is performed throughout the audit. Most planning
work will, however, occur early in the audit with the following components. These
components will not necessarily be performed sequentially, if doing so would be inefficient.
Planning Procedures
1. Initial meetings with Management
Management. We will discuss the planned audit scope, and verify our understanding of
communication channels and working relationships with management. The discussions
will include the following:
Accounting principles
Any staff concerns
Initial audit approach and dates
Assistance by Fund personnel
Initial audit concerns
Reporting requirements and deadlines
Establish progress reporting process
2. Perform Preliminary Analytical Review Procedures
We will perform a preliminary analytical review to analyze the financial statements for
unusual trends and results and to identify in advance the high risk audit areas. Extended
audit procedures are then focused on the areas of unusual results or potential audit risk.
3. Determine Audit Materiality
During the preliminary planning process for the audit, we will calculate materiality at the
activity level. From the materiality figure we also calculate tolerable misstatement and a
range of individually significant items.
However, this calculated materiality is only a starting point. Auditing standards define
materiality from the viewpoint of the user of the financial statements, not the auditor. The
question we have to ask is, “Would it affect the user’s conclusions regarding the financial
position or results of operations of this fund if the adjustment was not made or a particular
fact was not disclosed?” As a result, in certain areas our materiality levels may be reduced
significantly to take into account the user’s perspective.
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Gain an Understanding of the Fund’s Operations
Our risk assessment procedures begin with gaining an understanding of Fund operations.
We will hold meetings with Fund personnel and request key documents (such as
accounting manuals, policy documents, procedures manuals, directives, handbooks, and
operations manuals) to obtain an understanding of operations needed for developing our
specific audit approach. We will obtain and evaluate, as appropriate, the Fund’s reports
and previous audit reports that may impact the scope and methodology of the financial
statement audit.
Assess the Risk of Fraud
Based on the understanding of the Fund, we will assess the risks of fraud. Typical
procedures include:
Hold audit team meetings to “brainstorm” ideas regarding how fraud could be
perpetrated and concealed.
Inquire of management and others significantly involved in financial reporting to:
(1) identify known instances of fraud and (2) determine how someone could
rationalize, perpetrate, and conceal fraud.
Evaluate the possibility that management could override internal controls.
Inherent Risk Assessment
Inherent risk is the probability that, in the absence of internal controls, material errors or
frauds could enter the accounting system. It represents the susceptibility of a financial
statement line item or account to misstatement based on its complexity, dollar value,
liquidity, volume of transactions, and its subjectivity to estimation. Cherry Bekaert will
establish an inherent risk assessment based on our understanding of the Fund’s
operations and our experience with similar organizations.
II. Internal Control Documentation, Verification and Testing
Our internal control phase will be designed to carefully assess control-risk factors
corresponding with all significant financial statement assertions. We will conform to the
AICPA’s risk-assessment standards, which require the auditor to obtain an understanding
of internal control sufficient to assess the risk of material misstatement of the financial
statements and to design the nature, timing, and extent of further audit procedures.
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Entity Level Controls
As part of our entity level control assessment we will consider whether there are Fund-wide
processes that promote strong internal controls:
1. Control Environment
Management philosophy
Management’s attitude towards risks
Oversight by the Fund’s governing board
Integrity and ethical values
Promotion of ethics and appropriate conduct
Organizational structure
Assignment of authority and responsibility
Workforce competence and human resource development
2. Risk Assessment
Determine whether a process is established for on-going risk assessments of the
impact of change on key financial processes
Determine how the Fund identifies and addresses risks throughout the
organization.
3. Information and Communication
Document and assess how the Fund gathers, uses and disseminates information.
4. Monitoring
Document and assess the effectiveness of the Fund’s monitoring activities.
III. Risk Assessment Synthesis
The auditor’s consideration of inherent, fraud, and internal control risk (including control
environment, risk assessment, communication, and monitoring) affects the nature, timing,
and extent of testing. The objective of our Risk Assessment Synthesis is to take into
consideration all that we have learned about the Fund, changes that have occurred during
the year, its operating environment, inherent risk, control risk, and fraud risk and determine
what our audit response, if any, should be. During the planning phase, we will identify and
document all risks and associate them with significant financial statement line items and
assertions. For each risk identified, we will also document the nature and extent of the risk
and condition(s) that gave rise to the risk. After completion of our initial planning, our
inherent risk assessment, and our documentation of entity level and process level internal
controls, the results are summarized through our Risk Assessment Synthesis process. The
Risk Assessment Synthesis process is designed for identifying significant audit areas,
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documenting the risks of material misstatement affecting each area (including fraud risks or
other significant risks), assessing those risks, selecting an audit approach that is
appropriately tailored to respond to the assessed level of risk, and documenting the linkage
of the assessed risks to the audit procedures that respond to those risks. The end product
is a set of customized audit programs by significant area that reflects our risk assessment
process and provides for an efficient and effective audit.
IV. Compliance
Compliance with Laws and Regulations
Our compliance audit procedures are designed to identify and test those transactions and
activities that are likely to have a financial impact on the basic financial statements and to
determine whether they were carried out in accordance with the provisions of laws, rules,
contracts, and grantor guidelines. We will conduct our audit in accordance with standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Our reports will note instances of noncompliance
that could have a material effect on the financial statements.
V. Further Audit Procedures
We will perform substantive tests to form conclusions about whether the financial
statements are free from material misstatements. These customized audit procedures
come directly from the Risk Assessment Synthesis where inherent risk, fraud risk, and
control risk have been combined to assess the likelihood of misstatement by significant
area and financial statement assertion.
Conduct Substantive Tests
Substantive test procedures will be applied to all significant assertions in each significant
financial statement line item and account. The objective of substantive testing is to
determine if financial statement assertions are materially misstated and to form an opinion
about whether the financial statements are presented fairly in accordance with the
organization’s basis of accounting. If appropriate, the Cherry Bekaert Team makes use of
computerized audit tools to improve the efficiency and effectiveness of substantive tests.
The extent of substantive testing is based largely upon our assessed level of combined
risk. For example, if we assess combined risk as low, then we can rely upon internal
controls and perform limited testing. If, however, we assess combined risk as high, we
cannot rely upon internal controls and must obtain all assurance for expressing an opinion
on the financial statements from substantive testing. The two types of substantive tests are
analytical review procedures and detail tests.
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Analytical review procedures are based upon establishing an expectation of
what a significant balance or transaction total should be. If the actual amount is
within a certain limit of the established expectation, then the auditor may
determine that no further testing is necessary or may determine that additional
detail testing is desirable.
Detail tests are procedures applied to individual items selected for testing and
include confirmation, physical observation, vouching, and recalculation.
Other Investments – For other investments which do not have a readily available
market value we obtain the most recent audited financial statement for the
reported net asset value. If the statements are a different year end we review the
methodology to calculate the net asset value as of the Fund year end and
determine reasonableness.
Conduct Tests Related to Fraud Risks
We will perform testing for fraud risks identified during the planning phase that are not
mitigated by internal controls. Testing will be combined with substantive and compliance
testing to the extent practical. In addition to performing tests related to specifically identified
fraud risk, we will perform the following procedures to identify fraud related to management
override of controls:
Examine journal entries and other significant adjustments.
Review accounting estimates.
Evaluate the business rationale for significant unusual transactions.
VI. Reporting
We will reconsider the effectiveness of our audit, follow up as needed, develop overall
conclusions and communicate them to management, perform several quality control
functions, and prepare reports.
1. Complete Overall Analytical Review Procedures
Once the draft financial statements and note disclosures have been prepared, we will
conduct analytical review procedures. Specifically, we will review the financial statements
and supporting trial balances for key relationships and determine if audit evidence is
consistent with variances noted during preliminary analytical procedures. Our analytic
review will include trend and comparative analysis and will encompass the use of key
liquidity, performance and operational metrics.
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2. Determine Adequacy of Audit Procedures and Audit Scope
In the planning phase, we determined planning materiality based on preliminary
information. Based on planning materiality, we determined design and test materiality
levels, which impacted the nature and extent of testing. We now will determine a final
materiality based upon audited balances. In light of the final assessment of combined risk
and final materiality level, we will consider if the extent of substantive audit procedures was
sufficient.
3. Evaluate Known and Likely Misstatements
Misstatements will be evaluated both in quantitative and qualitative terms. Based largely on
these considerations and our evaluation, we will determine the type of audit opinion and
internal control and compliance reports to render.
4. Prepare Audit Reports
In accordance with auditing standards generally accepted in the United States of America
and Government Auditing Standards we will then prepare the following reports:
Independent Auditor’s Report
Independent Auditor’s Report on Internal Control over Financial Reporting and on
Compliance in accordance with Government Auditing Standards
Management Letter, if any
Communication of Significant Audit Matters
The Management Letter will report internal control deficiencies not considered significant
deficiencies, as described in AICPA standards. This letter will also report on our follow-up
of previous recommendations and report on corrections made and the status of
uncompleted actions.
5. Review reports with the Fund representatives, Finalize and Present to Governing
Body
We will review our draft auditor’s reports, management letter and other matters with the
Fund representatives and solicit their input. After meeting with the Fund Board of Trustee’s
the auditor’s reports will be finalized and signed.
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City of Palm Beach Gardens Firefighters’ Pension Fund
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Communication Philosophy
Open, candid communication with management will occur throughout the year as well as
through formal correspondence required by auditing standards. We meet with management
prior to beginning the audit to discuss expectations and the timeline for our work. At the
completion of the audit, we will meet with the Fund's Board to review our findings and other
items that may assist the Board in its fiduciary responsibilities. If appropriate, we will issue
a management letter with items related to internal control practices as well as
recommendations for improving management of and control over the Fund resources.
We believe communication throughout the audit process is critical to meeting your
expectations for your audit firm and an integral part of an effective and efficient audit. We
will bring to the attention of management any accounting or internal control issues noted
during the course of the audit as soon as they arise, so they can be resolved as quickly as
possible. We will also communicate opportunities for improvements in internal control
informally during the course of the audit to allow immediate consideration, and will formally
communicate those opportunities in a management letter at the conclusion of the audit.
In preparing management comments/recommendations, Cherry Bekaert utilizes a “bottom-
up” review approach to avoid any surprises. This approach allows any draft comments or
recommendations to be initially reviewed at the level within the department where direct
management responsible for the activity under review rests and only subsequently
discussed at higher levels. Our findings will contain a statement of condition describing the
situation and the problem that needs attention, what should be corrected, and why.
In addition to accounting issues noted during the audit, we will alert you to developing
accounting standards that we believe would be of interest to you. In most situations,
accounting and internal control matters are identified, communicated and resolved as a
normal part of the audit process. However, should there be items of such magnitude or
significance that warrant communication to management prior to our next scheduled
meeting, we will do so immediately.
Use of Technology/EDP Software
Our audit of the Fund will feature the combined use of data analysis software, wireless
technology and engagement management software. As such, our documentation is
virtually paperless with procedures documented in an automated environment and files
shared through wireless technology among engagement team members.
Work Paper Management. Our work papers are managed using CCH Engagement, a
software package that allows us to prepare, review, transfer and manage our work in a
paperless environment.
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City of Palm Beach Gardens Firefighters’ Pension Fund
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Wireless Technology. On site, our computers are linked using encrypted wireless
technology, which greatly facilitates our ability to efficiently manage our engagements. In
automating our approach to the Fund's audit, we will be careful not to duplicate the Fund’s
software capabilities. We will take a long-term view toward the Fund audit, investing
considerable time and effort to automate in order to enhance long-term efficiency. We
believe that these perspectives will enhance both the quality and efficiency of the Fund's
audit.
Review and Auditing ERP Software
We will perform the review of the information systems environment used
to process the Fund’s transactions. If necessary we will use our firm-
designated IT Audit Group (ITAG) consultants. Our ITAG group has
experience auditing all major ERP packages, at state and local
governments as well as commercial entities across the Southeast. As
such, we use tailored IT Audit programs based on your specific environment and the inner
workings of specific software packages.
We will assess the effect of systems processing on the Fund’s business and will assess the
reliability of systems processing. They will focus on providing constructive service
comments intended to improve the quality of information and system controls. The results
of this assessment will be integrated into our audit approach to improve audit efficiency and
to further define the way in which we address identified risk factors.
Additional Services
At Cherry Bekaert, we are more than just auditors; we focus on the success of our clients.
We encourage you to consider us as a resource and to consult with us on various
regulatory, accounting, employee benefit, tax and other matters that may arise throughout
the year. It is not our philosophy to bill for each telephone consultation, inquiry or meeting.
In fact, we encourage an active exchange and dialogue, as it facilitates our ability to advise
you on important matters.
All benefit plans are facing increasing scrutiny by regulators, employees and other outside
parties. In the current economic climate, once “safe” investments may be experiencing
negative performance and declining value. These conditions increase the pressure on all
parties associated with benefit plans and have significantly increased employee awareness
and concern with respect to their retirement savings.
f) Public Entity Crimes
The completed Sworn Statement Under Section 287.133(3)(a) Florida Statutes, on Public
Entity Crimes is attached after this page.
SWORN STATEMENT UNDER SECTION 287.133(3)(a),
FLORIDA STATUTES, ON PUBLIC ENTITY CRIMES
THIS FORM MUST BE SIGNED AND SWORN TO IN THE PRESENCE OF A NOTARY PUBLIC OR OTHER
OFFICER AUTHORIZED TO ADMINISTER OATHS.
1. This sworn statement is submitted to The City of Palm Beach Gardens Firefighters' Pension Fund
[print name of public entity]
by James A. Burdi ck, Partner
[print individual's name and title]
for Cherry Bekaert LLP
[print name of entity submitting sworn statement]
whose bus iness address is 800 N. Magnolia Ave. Ste. 1300. Orlando. FL 32803
and (if applicable) its Federal Employer Identification Number (FEIN) is 56-0574444 (If the
entity has no FEIN, include the Social Security Number of the individual signing this 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 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 , nonjury 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:
1. A predecessor or successor of a person convicted of a public entity crime; or
2. An entity under the control of any natural person who is active in the management of the entity and
who has been convicted of a public entity crime. The term "affiliate" includes those officers, directors,
executives, partners, shareholders, employees, members, and agents who are 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.
G :IWpI\CONT _ADMIPUR7068 .doc
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 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
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 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 1 (ONE) 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 I THE INFORMAT ION C TAINED IN THIS FORM.
Sworn to and subscribed before me this ----'3=O_-+-n _____ day of J"lAne ,20 Iv(
Personally known#me.s L . Bwd,cK
OR Produced identification ________ _ Notary Public -State of -1-F---'iJ.LtJLJriJ.Ld""'o"---______ _
(Type of Identification)
G:IWpf\CONT _ADMIPUR706B.doc
My commission expires -,-+1 {..::;5+/-""r1:.=D::...JI_S'-______ _
(Printed typed or stamped Commissioned name of Notary Public)
I) Mensaa Mo)'ll-8ogurske
NOTARY PUBLIC
STATE OF FLORIDA
• • Comm# EE053237
Expires 1/5/2015
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II.Timing
Cherry Bekaert has a history of providing timely services to our clients, which enables us to
control project cost. We provide our clients with services that meet their time frames and
budgets. As one of the largest CPA firms in the Southeast, Cherry Bekaert has the
resources available to serve a broad range of clients. A primary factor in our ability to
provide services on time and within budget is our local office commitment. Another factor
that helps ensure timely service is our industry specialization. The professionals who serve
our clients have an excellent understanding of the environment in which they work.
As a result, our professionals require little “on-the-job” training. In addition, the high level of
partner and manager interaction we provide helps ensure that any budget or time issues
are identified and resolved. We understand the importance of providing a product that is
timely and cost-effective, as well of a high quality and assuming we obtain timely
information and cooperation from the Fund and City personnel, we commit to delivering a
draft of the Fund’s annual audit by January 1st of each year.
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III.Fees
We understand and appreciate the Fund’s desire for professional service providers who
are not only highly qualified, but who are also cost-conscious and cost-effective about the
work they perform. We are mindful that cost is always a consideration in selecting a
professional services firm.
Our fees are generally based on the time required to complete the work at our established
billing rates, plus clerical and computer charges and out-of-pocket expenses. Our fees are
also based on other factors such as the complexity of the work, the skill required, time
limits, the experience and abilities of our personnel, and the value of the services rendered.
In developing our estimated audit fee, we have used the time that was required to conduct
the audits and issue our reports for your engagement and other similar type entities of your
size. The fee estimate is based on anticipated full cooperation from your personnel and
assumes that unexpected circumstances will not be encountered during the audit. If
additional time is necessary, we will discuss it with you and arrive at a new fee estimate
before we incur the additional costs.
Total Fees – Audit Services
Annual audit of the Financial
Statements of the City of
Palm Beach Gardens
Firefighters Pension Fund
2014
$ 14,000
We strive to encourage open communication between our clients and their service team.
Accordingly, we do not bill for short, routine telephone calls to discuss issues facing our
clients. In general, we will only bill for standard items such as service requests requiring
research and/or a written response. We will discuss the fees for any such requests with the
appropriate management in advance of performing the work.
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IV.Required Documents
Insurance
Cherry Bekaert maintains adequate insurance coverage to meet the needs of the Fund.
We have placed our professional liability insurance with a national carrier and our current
limits of coverage are satisfactory for this engagement.
Public Entity Crimes – Sworn Statement
The Public Entity Crimes – Sworn Statement is included after page 25 of this proposal.
Peer Reviews
Peer reviews are intensive reviews of a firm’s quality system applicable to its accounting
and auditing practice. These reviews are performed by CPAs from American Institute of
Certified Public Accountants (AICPA) division member firms in accordance with standards
established by the AICPA. The review evaluates the firm’s policies and procedures and
reviews a sample of the firm’s engagements to determine compliance. The work of the
reviewers is in turn reviewed by the independent Oversight Board and by the AICPA. A
formal report, which is available to the public, is then issued.
Cherry Bekaert has passed, without exception, eleven consecutive peer reviews conducted
under the auspices of the AICPA. A copy of our most recent peer review report is included
as Appendix A of this proposal.
Proposal to provide audit services
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Appendix A. Peer Review
Proposal for Auditing Services for the
City of Palm Beach Gardens
Firefighters' Pension Fund
For The Fiscal Year Ending September 30, 2014
July 3, 2014
Alberni Caballero & Company, LLP
4649 Ponce de Leon Blvd
Suite 404
Coral Gables, FL 33146
Andrew S. Fierman, CPA Partner
andrew@acc-cpa.com
T:305.662.7272 F:305.662.4266
FEI# 55-0912340 CPA License#: AD64536
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Proposal for Auditing Services
Alberni Caballero & Company, LLP
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LETTER OF TRANSMITTAL
A. Qualifications of the Firm..........................................................................................1
B. Individual Qualifications............................................................................................4
C. Client Information...................................................................................................12
D. Audit Approach.......................................................................................................12
E. Project Schedule......................................................................................................18
F. Proposed Fee Schedule............................................................................................20
G. Liability Insurance...................................................................................................21
CONCLUSION .............................................................................................................22
APPENDICES
A Letters of Recommendation
B Licenses to Practice in the State of Florida
C Insurance
D Peer Review Report
E Public Entity Crimes Sworn Statement
ofTABLE CONTENTS of
Alberni Caballero & Company, LLP
4649 Ponce de Leon Blvd
Suite 404
Coral Gables, FL 33146
T:305.662.7272 F:305.662.4266
ACC-CPA.COM
July 3, 2014
City of Palm Beach Gardens Firefighters' Pension Fund
c/o Pension Resource Center
4360 North Lake Blvd. Ste 206
Palm Beach Gardens, Florida 33410
Re: Proposal For Auditing Services
The independent certified public accounting firm of Alberni Caballero & Company, LLP (AC&C) proudly submits the
following proposal to provide annual audit services to the City of Palm Beach Gardens Firefighters' Pension Fund (the Fund),
with the fiscal year ending September 30, 2014. The firm is based in Miami-Dade County with an office in Broward County.
Our firm consists of Certified Public Accountants and professionals dedicated to serving the public sector.
AC&C’s partners have been providing professional CPA services throughout Florida for the past 30 years and are membersof
the American Institute of Certified Public Accountants and the Florida Institute of Certified Public Accountants. Alberni
Caballero & Company, LLP is also a member of the AICPA’s Government Audit Quality Center and Employee Benefit Plan
Audit Quality Center.
Our team, based out of our Coral Gables office offers the following advantages:
Experienced Personnel On-The-Job:Our Management Team’s CPA’s average:
•over 30 years of professional practice with 20 in the governmental audit and accounting field;
•and over 10 years working together as a team
Knowledgeable Team: Because our team members are devoted to the governmental sector, we are experts in the intricacies
of governmental accounting and the unique issues affecting your Fund.
Our management team has performed numerous pension fund audits which include the following defined benefit pension
funds:
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•Miami Shores Village General Employee's Pension Plan
•Miami Shores Village Police Pension Plan
•Riviera Beach Police Pension Fund
•Town of Jupiter Police Officers Retirement Plan
•City of Hialeah Gardens Police Officers
Retirement Plan
•City of Homestead Police Officers’ Retirement Plan
•City of South Miami Police Retirement Trust Fund
•City of North Miami Beach Police Officers and
Firefighters Pension Plan
•City of Lauderhill General Employees Retirement Plan
•City of Hialeah General Employees Retirement Plan
•City of Hialeah Elected Officials Retirement Plan
•Oakland Park General Employees’ Pension Plan
•City of South Miami General Employees and
Police Retirement Plan
•City of Homestead General Employees
Retirement Plan
•City of Homestead Elected Officials Retirement Plan
•City of Homestead Senior Management and Elected
Officials Retirement Plan
•City of North Miami Beach General Employee's
Pension Plan
•City of North Miami Beach General Management
Employees Pension Plan
•Bal Harbour Pension Plans
•North Miami Pension Plans
•Key Biscayne Pension Plans
Management Involvement:Unlike most firms:
•The professionals assigned to your engagement focus the majority of their time working exclusively with
governmental and not-for profit organizations
•Experienced Firm Management (Supervisors/Seniors) will dedicate 100 percentof theirtime to
your engagement
•Because of our experience, we will use your staff’s time efficiently and serve as a valuable resource for
your Organization
On-Site Decision Makers: Unlike most other firms, our partners are on-site during the engagement. This
ensures that any audit issues will be resolved efficiently and timely since the key individuals of the engagement
will be on-site during the audit.
Satisfied Clients: We have included references for several other pensions and have also included letters of
recommendation.
Immediate Service Responsiveness: Accessible to Clients 7 days a week regarding ANY comments, questions,
or concerns.
Timely Delivery of Services:We understand the importance of completing the audit and issuing the audited financial
statements in a timely manner and will work closely with you and your staff to exceed your expectations.
Fees:We recognize that engaging an accounting firm is an important investment of the Fund. You can expect that we are
competitively priced and that your investment in us will add value to your organization. Also, that we stand and have
proven that when we mean ALL-INCLUSIVEit is. No additional charges for attending meetings or technical advice.
Based on our understanding of your expectations and the requirements set forth in your RFP, we will summarize the scope
of our proposed services and our audit approach. We will demonstrate how our approach surpasses other firms’ and will
exceed the Fund’s expectations. We will perform an annual audit of the financial statements of the Fund for the fiscal
years ending September 30, 2014.
We commit to perform the work within the time period described in your request for proposal.The firm will be
involved throughout the entire year, by providing assistance in resolving issues and informing the Fund of new evolving
issues and related matters of importance.
This proposal is a binding and irrefutable offer for a period of 120 days from the date of the proposal.
The firm has no existing or potential conflicts, and anticipates no conflicts during the engagement. Andrew S. Fierman,
CPA is authorized to make representations for and to bind the firm. He can be reached at (305) 662-7272. His e-mail
address is Andrew@acc-cpa.com. Please do not hesitate to call if you have any questions about the information
provided in this proposal. We thank you for considering our firm's qualifications and experience and look forward to
serving you.
Very truly yours,
Andrew S. Fierman, CPA- Partner
Alberni Caballero & Company, LLP
FEI# 55-0912340
CPA License#: AD64536
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City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 1
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A. QUALIFICATIONS OF THE FIRM
Alberni Caballero & Company, LLP (AC&C) is a Certified
Public Accounting firm of professionals that work together
on a continual basis with the main focus of serving the public
sector. AC&C is a local firm and a professional limited
liability partnership with offices in Coral Gables and Miramar,
which provides comprehensive financial and compliance
auditing, attestation and accounting, and other management
consulting services. AC&C’s partners have served the
South Florida area for over 30 years and the firm has
been in existence since 1972.
Our industry areas of specialization include:
•Local Government Retirement Funds
•Retirement Plans (Defined Benefit, Defined
Contribution, 403(b) and 401(k))
•Municipalities (Cities, Villages and Towns)
•Other Governmental Entities
•Public Housing Agencies
•Non Profit Organizations
•Charter Schools
Our firm’s spectrum of services include:
Assurance Services- primarily involve audit of financial
statements as well as Federal and Florida Single Audits and
various compliance audits. In addition to these services we
provide consulting services to local governments such as IT
Reviews, GASB implementation, and financial statement and
Comprehensive Annual Financial Report (CAFR) preparation
services. We provide audit services to over 15 defined benefit
pension funds and our partners have been performing these
audits for more than 20 years.
Tax and Advisory Services- tax return preparation for not
for profit organizations, private companies and individuals.
We also provide assistance to local governments and
not-for-profit organizations with compliance and
understanding of IRS regulations.
Information Technology- Through our partnership with
other professionals we also offer Information Technology
(IT) services such as IT compliance assessments.
AC&C’s philosophy is to provide our clients with the
same high level of technical expertise and service they would
expect from a large national firm, but with the personal
attention of a small local firm. All of our audit clients have
direct access to our partners and we have committed to
have our partners involved throughout all phases of the
audit. In other words, our partners are in the field during
the audit and all the decision making is on site.
Our professional staff is prepared and fully qualified to
help you determine your realistic present and future goals,
and assist you in reaching them. We combine invaluable
experience gained at some of the most highly regarded
international accounting firms, with the kind of personal
service these firms can seldom provide.
Every member of our professional staff at the firm is here
because they combine outstanding accounting qualifications
with proven communication skills and depth of character.
Our audit partners and staff are actively involved with
recognized standard-setting organizations at the national
level, state level and the local level. The firm is also a
member of the AICPA Governmental Audit Quality Center,
which holds our firm to a higher standard of quality.
We certify that the firm is a member in good
standing of the American Institute of Certified Public
Accountants (AICPA) and Florida Institute of Certified
Public Accountants (FICPA).
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 2
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The work will be conducted and staffed out of our
Coral Gables office. The following chart reflects the current
structure of our Coral Gables office:
There will be a total of four team members assigned
to the Fund’s Engagement: two Partners, one Supervisor
and one Senior Auditor and staff accountants as needed.
The Partners will be assigned part time and the supervisor
and senior who are all out of our Coral Gables office will be
assigned full time.
Experience In Information Systems And
Technology and Extent of Use of EDP Software
in the Engagement
Our approach to auditing integrates traditional auditing
techniques with a total system concept. We are actively
committed to using computer-based audit techniques.
Our knowledge of information systems (IS) and the use
of paperless audit software yield significant savings in the
time required to complete an audit.
Today’s marketplace provides firms, large and small,
national and local, with sophisticated computer-aided audit
tools necessary to perform data analysis and report
generation.
A client’sISenvironment influences the nature, timing,
and extent of planned auditing procedures. Because most
of our clients utilize computerized accounting systems, our
professional team is experienced with various IS systems.
As computers have become more integral to the financial
management system, we have met the challenge by
incorporating new audit techniques into the audit process.
Staff members are trained on new software and are skilled
in a wide variety of computerized applications.
An important component of our audit is the review of IS
general controls. We understand that the effectiveness of
many client control procedures is dependent on reliable
computer-generated data which result from proper IS
general controls. Therefore, we will analyze these controls
to determine the adequacy of the internal control
environment.
Our IS expertise, combined with extensive auditing
and consulting experience mean that we understand the
technical intricacies of complex information systems in the
context of real-world application.
Utilizing this expertise we will be able to:
•Evaluate IS general controls within the computer
environment;
•Document critical transaction processing systems;
•Identify key processes and controls within these
transaction processing systems;
•Evaluate the effectiveness of identified controls;
•Advise the audit team on results of the evaluation and
effect on planned audit procedures;
•Design, develop and execute computer-assisted audit
techniques using computer audit software packages;
•Assess the internal controls
Total
Professional
Staff
Partners 5
Senior Managers / Managers/
Supervisor/Seniors 7
Staff accountants 6
Other and
Administrative 4
Total 22
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 3
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Independence
Alberni Caballero & Company, LLP affirms that we
meet the independence requirements of our professional
standards, Activities and Functions published by the U.S.
General Accounting Office, Government Auditing Standards
or any subsequent amendments or superseding revisions.
We are also independent of the Fund as defined by auditing
standards generally accepted in the United States of
America. We further certify that Alberni Caballero &
Company, LLP, its partners and employees are independent
of the Fund and have no conflict of interest. We will give
written notice to the Fund of any professional relationships
entered into during the period of this engagement (if any).
Conflicts of Interest
We affirm that we have no business affiliations with the
Fund and we are not aware of any conflicts of interest that
would exist if the Fund retained our firm.
License to Practice in the State of Florida
AC&C is properly registered/licensed State of Florida
professional limited liability partnership. All assigned key
professional staff are properly registered/licensed to practice
public accounting in the State of Florida. See Appendix B
for professional licenses.
Report of Peer Review
Alberni Caballero & Company, LLP’s most recent peer
review report is presented as Appendix D. We received a
rating of Pass. The review included review of specific
government engagements.
Participation in Quality Control Review Program
Alberni Caballero & Company, LLP is a member of the
Government Audit Quality Center and as such must comply
with a comprehensive quality control process specific to
governmental engagements.
Results of State and Federal Reviews
Alberni Caballero & Company, LLP has never been
subjected to a federal or state desk review of any of its
workpapers.
Disciplinary Actions
Neither Alberni Caballero & Company, LLP nor any of its
partners have ever been involved in any disciplinary action
by a regulatory agency.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 4
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B. INDIVIDUAL QUALIFICATIONS
Audit Team Structure & Years of Governmental Experience
Nestor Caballero, CPA,MST, CGAP
Quality Control Partner
Andrew S. Fierman, CPA
Engagement Partner
Yannick Ngendahayo
Supervisor
Alfredo Caraballo
Senior Auditor
Andrew S. Fierman, CPA (Engagement Partner)
•12 Years of Total Governmental Audit Experience
Nestor Caballero, CPA, MST, CGAP
(Quality Control Partner)
•20 Years of Total Governmental Audit Experience
Yannick Ngendahayo, (Supervisor)
•8 Years of Total Governmental Audit Experience
Alfredo Caraballo, (Senior Auditor)
•5 Years of Total Governmental Audit and Experience
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 5
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Experience In Governmental Pensions
The engagement team that will serve the Fund is
composed of individuals who understand governmental
entities and their pension funds and possess the technical
skills and experience necessary to deliver quality audit
services. Our team will include one Quality Control Partner,
one Engagement Partner, one Supervisor, one Senior Auditor
and staff auditors (as needed).
These professionals have a wide variety of experience
in providing auditing, accounting and advisory services to
governmental entities. In addition to their experience and
knowledge, the members of the engagement team have the
functional and technical skills to ensure the performance and
completion of a comprehensive engagement.
Our senior engagement team of CPAs offers over 30 years
of professional practice; 20 in the not-for profit audit and
governmental field and the performance of financial and
managerial services for governmental and not-for-profit
entities and their pension funds. These individuals spend most
of their time working with governmental agencies. This means
they will be a fertile and beneficial resource to the Fund.
Management Team
The management team who will serve the Fund is
composed of individuals who:
•Are licensed CPAs;
•Possess a comprehensive understanding of
governmental pensions;
•Are highly experienced in working with a variety of
governmental clients and their pension funds;
•Demonstrate the technical skills necessary to
deliver quality financial and managerial services;
and
•Have over 20 years of professional practice in
governmental accounting.
Engagement Partner
The Engagement Partner has direct responsibility for
engagement policy, direction, supervision, security and
communication with the Fund’s personnel. He will also ensure
that the deliverables and all other reports are prepared in
accordance with professional standards and firm policy.
He will be responsible for all phases of the engagement and
will be:
•coordinating all services with the Fund;
•directing the development of the overall
engagement approach and plan;
•supervising staff; planning the engagement;
•preparing or modifying project plans, as needed;
•evaluating internal control and assessing risk;
•reviewing work product for compliance with the
organization’s requirements and completeness;
•communicating with the Fund and the progress of
the engagement; and
•reviewing deliverables and all reports issued by the
firm for accuracy and completeness;
•and that they are prepared in accordance with
professional standards and firm policy;
•leading meetings and discussions with key
management personnel.
Andrew S. Fierman, CPA will be the Engagement
Partner and a designated “KEY” engagement team member.
Mr. Fierman has more than 12 years experience in the in
the governmental accounting and auditing sector. As the
Engagement Partner, he is responsible for reviewing the
form and content of the audit workpapers and the auditors’
report as well as the review of the Fund’s financial
statements in accordance with Firm and professional
standards.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 6
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Quality Control Partner
The Quality Control Partner will be responsible for the
quality control, supervision and confidentiality of information
of the engagement and will be available to members of the
engagement team and management of the Fund as a high-
level technical resource. In addition, the Quality Control
Partner will also complete the following:
•performing an overriding review of all deliverables;
•resolving technical accounting and reporting issues;
•reviewing and approving reports, management letters,
and other engagement products; and attending meetings
and discussions with key management personnel.
•of the Fund’s financial statements in accordance
with Firm and professional standards.
Nestor Caballero, CPA, MST, CGAP is the managing
partner of the Firm and will be the Quality Control Partner
and a designated “KEY” engagement team member.
Mr. Caballero has more than 20 years experience in the in
the governmental accounting and auditing sector. As the quality
control partner, he is responsible for reviewing the form and
content of the audit workpapers and the auditors’ report
as well as the review of the Fund’s financial statements in
accordance with Firm and professional standards.
Supervisor
A Supervisor will be assigned full-time to the engagement.
The Supervisor will be responsible for the overall performance
of the work in the field and assisting in the actual performance
of the engagement.
Yannick Ngendahayo will be the Supervisor assigned to
the engagement team. Mr. Ngendahayo was selected for
his extensive knowledge and experience in governmental
auditing and accounting. He will devote 100% of his time
to the completion of the work.
Senior Auditor
A Senior Auditor will be assigned full-time to the
engagement.The Senior Auditor will be responsible for
the overall performance of the work in the field and
assisting in the actual performance of the engagement.
Alfredo Caraballo will be the Senior Auditor assigned to
this engagement. Mr. Caraballo was selected for his
extensive knowledge in governmental and nonprofit
accounting. He will devote 100% of his time to the
completion of the work.
Note: All CPA’s assigned to the audit have properly
maintained CPE in governmental accounting and auditing
as required by the State Board of Accountancy and GAO.
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 7
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ANDREW S. FIERMAN, CPA
Engagement Partner
Andrew is a Partner in our firm’s audit department and brings over 12 years of audit experience.
He provides guidance on financial reporting, accounting, and auditing matters including Federal and
Florida Single Audits, and consulting services for all types of entities including governmental entities
and governmental pensions. These consulting services range from internal control reviews to audit
preparedness services to comprehensive annual financial report (CAFR) guidance and preparation.
Andrew’s areas of expertise are Financial Audits, Federal Single Audits, Florida Single Audits,
Employee Benefit Plan Audits, Agreed upon procedures, Internal Control Reviews and Consulting
Services. In addition, he conducts Peer Reviews for small to mid-size accounting firms.
GOVERNMENTAL AND GOVERNMENTAL DEFINED
BENEFIT PENSION CLIENTS
•City of Hialeah Pension Plans
•City of Homestead Pension Plans
•Miami Shores Village Pension Plans
•City of North Miami Pension Plans
•City of North Miami Beach Pension Plans
•Bal Harbour Village Pension Plans
•Village of Key Biscayne Pension Plans
•Town of South Palm Beach
•Northern Palm Beach County Improvement District
•Village of Key Biscayne
•The Children’s Trust
•Performing Arts Center Authority
•Miami Shores Village
•City of Miami Springs
•City of North Miami
•City of North Miami Beach
•Bal Harbour Village
•Town of Surfside
•Town of Bay Harbor Islands
•City of Miramar
•Village of Palmetto Bay
•Indian Creek Village
•City of Greenacres
•City of West Palm Beach
•City of Doral
•City of Hialeah
•City of Hialeah Gardens
•City of Lake Worth
•Town of Lauderdale by The Sea
•Village of Pinecrest
•Village of Golf
•City of Sunrise
•City of Pembroke Pines
•Town of Southwest Ranches
•Orlando Housing Authority
•Winter Park Housing Authority
•Miami-Dade Water and Sewer Dept.
•Florida Keys Aqueduct Authority
•Broward County Water & Sewer Dept.
PROFESSIONAL AND BUSINESS AFFILIATIONS
•American Institute of Certified Public Accountants (AICPA)
•GFOA Special Review Committee
•Florida Institute of Certified Public Accountants (FICPA)
•Miami Dade League of Cities - Budget Committee Member
•Florida Government Finance Officers Association (FGFOA)
•Broward County League of Cities
•Government Finance Officer Association (GFOA)
•Palm Beach County League of Cities
•South Florida Government Finance Officers Association,
Associate Member (FGFOA)
•Florida Association of Housing and Redevelopment Officials
(FAHRO)
•Communities in Schools of Miami, Inc., Board Member
•Cuban American Certified Public Accountants Association,
Vice-President
EDUCATION
Bachelor of Science in Accounting, University of Florida
Master of Business Administration- Florida International
University
CONTINUING PROFESSIONAL EDUCATION
Total CPE hours for the last two years is 120, of which
30 meet the Yellow Book (GAS) requirements
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 8
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NESTOR CABALLERO, CPA, MST, CGAP
Quality Control Partner
Nestor has 20 years of experience serving governmental, governmental pensions and not-for-
profit clients. He has extensive experience in analyzing and evaluating internal controls over all
major financial processes of governmental and not-for-profit entities, and in auditing federal
and state grants in accordance with OMB Circular A-133 and Rules of the Florida Auditor
General, respectively.
GOVERNMENTAL AND GOVERNMENTAL DEFINED
BENEFIT PENSION CLIENTS
•City of Hialeah Pension Plans
•City of Homestead Pension Plans
•Miami Shores Village Pension Plans
•City of Lauderhill General Employees Pension
•Riviera Beach Police Pension Plan
•City of South Miami Pension Plans
•Village of El Portal, Florida
•Town of Briny Breezes, Florida
•City of Hialeah Gardens, Florida
•City of Doral, Florida
•City of Tamarac, Florida
•City of Oakland Park, Florida
•City of South Miami, Florida
•Town of Miami Lakes, Florida
•Town of Southwest Ranches, Florida
•Town of Lauderdale By The Seas, Florida
•City of Hialeah, Florida
•City of North Miami, Florida
•City of Pembroke Pines, Florida
•City of Homestead, Florida
•Homestead Housing Authority
•Punta Gorda Housing Authority
•West Palm Beach Housing Authority
•Virgin Islands Housing Authority
•Riviera Beach Housing Authority
•Hialeah Housing Authority
•Venice Housing Authority
•Orlando Housing Authority
•Tampa Housing Authority
•Palm Beach County Housing Authority
•Lee County Housing Authority
•Winter Park Housing Authority
•Housing Finance Authority of Miami Dade
•Broward Center of the Performing Arts
•City of Hialeah Education Academy, Inc.
PROFESSIONAL AND BUSINESS AFFILIATIONS
•AICPA Governmental Audit Quality Center,
Designated Audit Partner
•AICPA Employee Benefit Plan Audit Quality Center,
Designated Audit Partner
•AICPA, Member
•Florida Institute of Certified Public Accountants, Member
•FICPA, Accounting Principles and Auditing Standards
Committee, Member, Past Member
•Miami Dade League of Cities - Member
•Government Finance Officers Association, Member
•Government Finance Officers Association, Member,
Special Review Committee
•Florida Government Finance Officers
(Small Governments Committee), Member
•Dade/Broward Government Finance Officers Association,
Member
•Cuban American Certified Public Accountants Association,
President
•Florida Association of Special Districts, Associate Member
EDUCATION
Master of Taxation, Florida International University
Bachelor of Accounting, Florida International University
CONTINUING PROFESSIONAL EDUCATION
Total CPE hours for the last two years is 124, of which
30 meet the Yellow Book (GAS) requirements
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 9
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YANNICK NGENDAHAYO
Supervisor
Yannick has over 8 years of accounting and auditing experience in not-for-profit, for-profit
and governmental entities. His extensive experience as an accountant and an auditor includes
examining accounting records to help ensure the reliability and integrity of financial information;
compliance with applicable laws and regulations; adherence with the established policies and
procedures; implementation of internal controls; and evaluation management’s achievement
of goals and objectives. He also has substantial experience in auditing federal and state grants in
accordance with OMB Circular A-133 and Rules of the Auditor General of the State of Florida,
respectively.
GOVERNMENTAL AND NOT-FOR-PROFIT CLIENTS
•Village of Biscayne Park
•Village of El Portal
•Town of Briny Breezes
•City of Hialeah Gardens, Florida
•City of Miami Springs
•Miami Shore Village
•Virginia Key Beach Park Trust
•Performing Arts Center Authority
•City of Homestead Police Officers Retirement Plan
•City of Homestead Elected Officials and Senior Mmgt (NEW)
•City of Homestead Elected Officials’ Retirement Plan (Old Plan)
•Winter Park Housing Authority
•West Palm Beach Housing Authority
•Homestead Housing Authority
•Hialeah Housing Authority
•Lee County Housing Authority
•Orlando Housing Authority
•Pahokee Housing Authority
•Palm Beach County Housing Authority
•Punta Gorda Housing Authority
•FIAC – Americans for Immigrant Justice, Inc.
•The Herald Charities, Inc.
•Human Services Coalition of Dade County / Catalyst Miami
•Transition, Inc.
•Power U Centers, Inc.
•Sweet Vine, Inc.
•Family Counseling Services of Greater Miami
•Aspira of Florida, Inc.
•Greater Miami Youth Symphony of Dade County, Florida, Inc
PROFESSIONAL AND BUSINESS AFFILIATIONS
•Florida Government Officers Association, Associate Member
•NAHRO, Associate Member
•FAHRO, Associate Member
EDUCATION
Bachelor of Accounting, Johnson & Wales University
CONTINUING PROFESSIONAL EDUCATION
Total CPE hours for the last two years is 120, of which 30 meet
the Yellow Book (GAS) requirements
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 10
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ALFREDO CARABALLO
Senior Auditor
Alfredo has over 5 years of accounting and auditing experience, including serving
governmental entities, not-for-profit and charter schools. His experience includes examining
accounting records for governmental, not-for-profit and for-profit entities to help ensure the
reliability and integrity of financial information; compliance with policies, plans, procedures,
laws and regulations; reviews of internal controls; and evaluating management’s achievement
of goals and objectives. He also has experience in auditing federal and state grants in
accordance with OMB Circular A-133 and Rules of the Auditor General of the State of
Florida, respectively.
GOVERNMENTAL AND GOVERNMENTAL DEFINED
BENEFIT PENSION CLIENTS
•City of Homestead Pension Plans
•Miami Shores Village Pension Plans
•Florida International University Foundation
•FIU Research Foundation
•FIU Athletics Finance Corp.
•Friends of WLRN
•Communities in Schools of Miami
•Miami Children's Hospital Foundation
•Museum of Contemporary Art
•Hispanic Unity of Florida
•City of Hialeah Gardens, Florida
•Miami Shores Village, Florida
•City of Doral
•City of Hialeah Education Academy, Inc.
•Town of Cutler Bay, Florida
•The Children’s Trust
•Hialeah Housing Authority
•Orlando Housing Authority
•Housing Authority of the City of Sanford
•Winter Park Housing Authority
•Aspira of Florida
•American For Immigrant Justice
•Catalyst Miami
•Sweet Vine, Inc.
•La Viña Community Church
•Nouvelle Institute
PROFESSIONAL AND BUSINESS AFFILIATIONS
•AICPA, Student Affiliate
•Florida Government Finance Officers Association,
Associate Member
•Government Finance Officers Association, Associate Member
•Beta Alpha Psi, Member
EDUCATION
Master Degree, Accounting, Florida International University
Bachelor Degree, Accounting, Florida International University
CONTINUING PROFESSIONAL EDUCATION
Total CPE hours for the last two years is 80, of which
30 meet the Yellow Book (GAS) requirements
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 11
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Quality Control System
The firm continually monitors performance to ensure the
highest quality of services. Under the supervision of our
audit partners, an audit senior manager/supervisor is
responsible for monitoring quality control of all appropriate
engagements.
The review process begins with the supervisor/senior. In
engagements where a staff is assigned, the supervisor/senior
is responsible for the initial review of his workpapers as well
as the workpapers prepared by the staff. After this the
senior manager performs a comprehensive review.
Subsequent to this review, a partner is responsible for the
comprehensive review of the engagement working papers.
The partner is responsible for ensuring that the issues
identified within the audit plan have been properly
addressed. The partner will also review the financial
statements to ensure that all material events and transaction
have been properly reported and comply with GAAP
requirements.
A second partner performs an overall review of the
workpapers and financial statements to provide a “second
set of eyes” and identify any areas that need strengthening
prior to issuance.
Quality of the Staff Over the Term of the Engagement
We pledge to the Fund the team listed will be returned
to the audit each year of the engagement. In the unlikely
event that it does become necessary to replace any of the
partners, senior manager, supervisor, senior accountant or
staff, we will first attain the Fund’s express prior permission
to do so. We understand the Fund’s right to accept or
reject replacements. In addition to the engagement team
members proposed herein, we also have other,
well-qualified professionals who stand ready to serve
your needs, if required. We can assure the highest
professional qualifications of the assigned staff we will
utilize for the Fund’s engagement.
In addition to our governmental focus, it is firm policy
that all professional employees exceed the minimum CPE
credits required for non-profit and governmental audits.
We currently have an in-house continuing education
program which provides approximately 120 credit hours of
governmental and not-for-profit accounting and auditing
every two years to all of our audit staff. In addition, our staff
regularly attends conferences and continuing professional
education seminars sponsored by the FICPA and the Florida
Government Finance Officers Association. Further, because
we are growing and expanding, we have an ongoing
recruitment program that seeks only those accountants
with a proven record of academic success. When we recruit
at the Senior and Supervisor level, we select CPA’s with
proven governmental and non-profit auditing experience.
The firm and its partners have provided auditing services
to local governments for the past twenty years.
Firm Capacity
Our engagement team’s work load is organized in such
a way that the additional activities brought about by this
engagement will not impact our current commitments to
other clients. We have sufficient staff capacity to integrate
these professional services for the Fund into our present
operations, while continuing to maintain the highest
standards of quality and time lines to all of our other clients.
Experience in Defined Benefit Funds for Florida
Public/Municipal Police and Firefighters’
Retirement Systems
Our partners, supervisors, seniors and staff including
those assigned to this engagement have more than 20 years
of experience in the performance of these types of audits.
They have all been experienced in fund audits since they
began their careers.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 12
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C. CLIENT INFORMATION
The following is a list of audit engagements performed by
the audit partner (main contact) that are defined Government
Pension Funds
•City of Homestead General Employees Retirement Plan
Contact: Peter Prior, Administrator
(954) 730-2068
•City of Homestead Police Officers Retirement Plan
Contact: Peter Prior, Administrator
(954) 730-2068
•Miami Shores Village General and Police Plans
Contact: Holly Hugdahl, Administrator
(305) 762-4855
•North Miami Pension Plans
Contact: Miguel Codorniu, Administrator
(305) 893-6511 ext: 12132
•Key Biscayne Pension Plans
Contact: Joan Wall, Administrator
(954) 723-9521
•Bal Harbour Pension Plans
Contact: Joan Wall, Administrator
(954) 723-9521
D. AUDIT APPROACH
Scope of Services
Based on our understanding of the expectations and
requirements of the Fund as set forth in the request for
proposal, the following is a summary of the scope of our
work. All work will be completed in the timeframe
specified in the request for proposal.
Audit of the Fund’s Financial Statements
The Firm will perform an audit of the basic financial
statements of the Fund for the fiscal year ending
September 30, 2014. The objective of the audit is the
expression of an opinion that the financial statements are
fairly presented in all material respects, and in conformity
with accounting principles generally accepted in the
United States.
The Firm will issue the following in accordance with
Government Auditing Standards:
•Report on the fair presentation of the basic financial
statements as a whole in conformity with accounting
principles generally accepted in the United States.
•Report on internal control over financial reporting and
on compliance with laws and regulations and other
matters based on an audit of financial statements per
formed in Accordance with Government Auditing
Standards.
We will also provide technical assistance to ensure the
Fund’s Basic Financial Statements meet all requirements of
the GASB.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 13
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Required Standards:
The Firm’s audit will be performed in accordance with the
following requirements, as applicable:
•Statements on Auditing Standards issued by the AICPA
•Government Auditing Standards, issued by the
Comptroller General of the United States
•Codification of Governmental Accounting and
Financial Reporting Standards, as promulgated by the
Governmental Accounting Standards Board.
•Audit and Accounting Guide, State and Local
Governments, as published by the American Institute
of Certified Public Accountants (AICPA)
•Statements and interpretations issued by the Financial
Accounting Standards Board
•Florida Statutes, Chapter 189 and 11.45
•Florida Statutes, Section 218.39
•All other applicable provisions of rules, regulations,
statutes or orders which may pertain to the engagement.
Monitoring and Communication
The Firm will report the following information to the
Board of Trustees:
•The auditor’s responsibility under generally accepted
auditing standards and Government Auditing Standards
•Significant accounting policies
•Management’s judgments and accounting estimates
•Significant audit adjustments
•Other information in documents containing audited
financial statements
•Disagreements with the management
•Management consultation with other accountants
•Major issues discussed with management prior to
retention
•Difficulties encountered in performing the audit.
Should the audit team become aware of fraud, irregularities
or illegal acts, they will make an immediate written report to
the Board of Trustees.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 14
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Our approach to the audit engagement integrates
traditional auditing techniques with a total systems concept.
We will consider the methods used by the Fund to process
accounting information when planning our audit, since they
influence the design of the internal control. The audit will be
conducted in the four phases which are shown on the Chart
on below.
Phase I - Strategic Planning
A thorough understanding of the Fund and its operating
environment is essential for the development of an audit
plan for an efficient, cost effective audit. During this phase,
we will meet with appropriate personnel to obtain and
document our understanding of your operations and,
at the same time, give you the opportunity to express your
expectations with respect to the services that we will
provide. Our work effort will be coordinated so that there
will be minimal disruption to your staff.
During this phase we will perform the following activities:
•Review the regulatory, statutory and compliance
requirements within which the Fund operates.
This will include a review of applicable federal laws,
the Fund’s ordinances, state statutes, County and
the Fund requirements and resolutions, debt
instruments, contracts, other agreements, and minutes
of meetings of the Board of Trustees.
•Review major sources of information such as budgets,
organization charts, procedures manuals, financial
systems, and management information systems.
•Determine the procedures necessary with regard to
opening balances, and obtain reasonable assurance
concerning the consistency of application of accounting
principles between the year being audited and the
preceding year.
•Review the working papers of the predecessor auditor.
•Obtain and document an understanding of the
Fund’s internal control structure, including
making an assessment of audit risk.
•Consider the methods that the Fund uses to process
accounting information which influence the design of the
internal control structure. This understanding includes
knowledge about the design of relevant policies,
procedures, and records, and whether they have been
placed in operation by the Fund.
•Develop audit programs to incorporate the
consideration of financial statement assertions,
specific audit objectives, and appropriate audit
procedures to achieve the specified objectives.
•Identify and resolve accounting, auditing, and reporting
matters.
Continuous
Communication
Throughout
2. Execution of
the Audit Plan
1. Strategic
Planning
3. Evaluation of
Audit Results
4. Completion
and Delivery
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 15
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Phase II - Execution of Audit Plan
The audit team will complete a major portion of
transaction testing and audit requirements during this phase.
The procedures performed during this period will enable
us to identify any matter that may impact the completion
of our work or require the attention of management.
Tasks to be performed in Phase II include, but are not
limited to the following:
•Analytical procedures are applied in this stage of the
audit to assist in planning the nature, timing, and extent
of auditing procedures used to obtain evidential matter
for specific account balances or classes of transactions.
•Perform substantive tests of account balances and
transactions. Samples will be drawn of major transaction
systems, including cash disbursements, cash receipts,
purchases, census data, and contributions.
•Perform tests of compliance with laws, regulations
and contracts.
•Review test results and formulate preliminary conclusions.
Phase III – Evaluation of Audit Results
This phase includes a review of all audit documentation
by the partners to ensure that testing and documentation
support the conclusions reached. This phase also includes
preliminary discussions with management of the audit
findings.
Phase IV – Completion and Delivery
In this phase of the audit, we will complete the tasks
related to the closing of year-end balances and financial
reporting. This will include final testing in the areas of com-
pliance, balance sheet accounts, revenue and expenditures,
among others. All draft reports will be reviewed with
management before issuance, and the partners will be
available to meet with the commission to discuss our
report and address any questions they may have.
Audit Management Plan
Our audit approach is to develop a specific audit action
plan tailored to the individual needs of our client. For each
audit we develop the most efficient combination of audit
techniques selected from the following methodologies.
Sampling Considerations
Our professionals will utilize sampling methodologies
designed to ensure effective audit procedures are applied in
the most efficient manner.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 16
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Sampling Techniques
We will utilize representative audit sampling procedures
with respect to substantive tests of details and tests of
controls and tests of compliance, where a sample of
documentation is to be tested as the principal evidence of
a control. During tests of controls, the tests will generally
consist of a combination of corroborative inquiry and either
observation, examination of documents or re-performance.
We will use attribute sampling to test documentary evidence
as documentation will be the principal corroborative
evidence of identified controls.
Statistical and Non-statistical Sampling
Substantive tests of details and tests of controls can be
performed using either statistically or non-statistically based
techniques. Statistical approaches will be based on our
calculation of risk factors. If a non-statistical approach is
deemed appropriate, we will design our procedures to
obtain levels of assurance that we judge to be equivalent to
those required when using statistically based techniques.
Sample Sizes
For tests of controls, sample size will be based on the
planned or supported assessed level of control risk and
the number of planned or actual deviations expected.
For substantive testwork, sample size will be a function
of population, materiality, and risk factors.
Analytical Procedures
Professional Auditing Standards on Analytical Procedures,
provides guidance on the use and extent of analytical
procedures in all audits.
Analytical procedures are required in the planning and
overall review stages of the audit, and are used in the
following areas:
Audit Planning
Analytical procedures can provide great insight in planning
an audit. These analyses can enhance our understanding of
the Fund’s transactions and events that may have occurred
during the year under audit.
We compare the current balances to the prior year and to
the current budget. Isolating significant differences can identify
areas that may require additional attention during the field
work. For example, such a review could identify a new
revenue source for which we would need to obtain docu-
mentation supporting the Fund for collecting such monies.
Substantive Tests
Analytical procedures can be used as effective substantive
tests in certain circumstances, for example, testing certain
payroll related expenditures, such as payroll taxes, which are
a specific percent of wages.
Overall Review
Analytical procedures used at the conclusion of the audit
are designed to assess the conclusions reached and evaluate
the overall financial statement presentation.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 17
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Internal Controls
The internal control segment is the foundation for the
entire audit and involves an extensive understanding and
evaluation of the Fund’s operating and management informa-
tion systems and all related internal controls. The results of
this evaluation will influence the nature, timing and extent of
our substantive audit procedures. This approach ensures
that we achieve maximum efficiency and provide valuable
feedback to management regarding the effectiveness of
controls being relied upon throughout the year.
A thorough understanding of the internal controls of an
organization is critical in planning our audit procedures
and providing useful comments and recommendations to
the Fund. We utilize a standardized control overview
document which assists us in identifying key elements within
internal control, such as the entity’s risk assessment process,
the control environment, information and communication
systems, and general monitoring and control activities.
The Control Environment
The control environment includes the management
philosophy, operating style, organizational structure,
functions of various boards and committees, methods of
assigning responsibility, personnel policies and procedures,
and various other factors that reflect the Fund's concern
with control in the area of finances. We will read the various
documents that impact this environment, and talk to
employees to see how these ideologies are portrayed at
various levels.
Auditing Standards promulgated by the American Institute
of Certified Public Accountants provide guidance for
auditors in assessing the internal control structure for
the purpose of the audit. As auditors, we consider the
internal control structure which consists of the following
five elements.
Risk Assessment
After understanding the control environment, we will
identify and assess the relevant risks to achieving the
objectives of the financial system.
Control Activities
The control procedures are integrated in the components of
the control environment and accounting system. While gaining
an understanding of those areas, we will assess the control
procedures that the Fund has in place. Consideration will also
be given to potential improvements to the efficiency and
effectiveness of the procedures in place. Any suggestions
for improvement will be communicated to the appropriate
person(s).
Information and Communication
We will document the formal and informal information
flow relating to the processing and recording of financial
transactions.
Monitoring
In this final component we will review Fund practices
that are in place to monitor the performance of its internal
control structure
Our evaluation of internal control includes considering the
individual components noted above and then considering the
effectiveness of internal control as a whole. We will obtain
our understanding of each of the elements through the
following procedures:
•Meeting with the Fund’s personnel to discuss
operations; and
•Reviewing internal assessment of internal control
The control overview document helps to ensure that all
elements of internal control are considered.
Subsequently, for significant internal control categories, we
will obtain an understanding of the design of relevant policies
and procedures, determine whether such procedures have
been placed in operation and assess control risk. This review
begins by holding interviews with data processing and
accounting personnel and evaluating your internal system
and accounting documentation. We will then prepare
documentation of the major systems. To the extent it is
available; we will also use internal control documentation
currently available. This review is organized into major
accounting cycles.
We have found through our experience that there are two
primary methods to test controls.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 18
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•Documented controls – Tested by reviewing a sample
of transactions for evidence that the control was
being performed.
•Undocumented controls – Tested through inquiry
and observation procedures with appropriate
department personnel.
Laws and Regulations
Statement on Auditing Standards from the American
Institute of Certified Public Accountants, establishes
standards for testing and reporting on compliance with laws
and regulations. In all financial statement audits, the auditor
must consider laws and regulations that have a direct and
material effect on the financial statements. Further, the
auditor designs audit procedures to provide reasonable
assurance that the financial statements are free of material
misstatements resulting from violations of these laws and
regulations that have a direct and material impact on
the financial statements. For governmental entities, this
requirement is even more important given the variety
of legal and contractual considerations typical of the
government environment.
Identifying applicable laws and regulations is fundamental
to fulfilling the responsibility of understanding their effects.
We will obtain this knowledge through the following sources:
•Discussion of compliance requirements with
the Fund’s officials, including legal counsel.
•Identification of compliance matters in statutes,
financial ordinances, the Fund’s policies, and contracts.
•Review of the Fund’s Board of Trustees meeting minutes.
•Our existing knowledge of federal and state laws.
Description Of Procedures To Be Used To
Ensure The Accuracy Of The Statistical and/or
Nonstatistical Samples
To ensure that samples selected for attribute testing
(tests of controls and compliance) and variable testing
(tests of details/substantive testwork) are “accurate”, or
valid, all samples will be reviewed and evaluated to ensure
that items selected are,
•Representative of the population so that characteristics
of the sample can be reasonably projected to the
entire population
•Of adequate size based on internal controls, tolerable
error, expected deviations, acceptable confidence
levels, etc.
•From a complete population
E. PROJECT SCHEDULE
Scope of Services
AC&C has a clear understanding of the reporting require-
ments outlined in the request for proposal. In this regard,
AC&C has developed a schedule that takes into consideration
the Fund's reporting requirements and deadlines. In order to
achieve these goals, we start early in the engagement and
complete as much of the planning and internal control testing
as possible. This allows us to focus on the financial transac-
tions after the Fund has closed its books. We integrate all of
our procedures in order to ensure that we can deliver our
reports in sufficient enough time to meet the Fund's dead-
lines. Our Partners are involved throughout the entire
process to ensure that any matters that arise are dealt with
quickly. This is an essential process followed by AC&C to
prevent surprises that could stall the engagement. AC&C is
also committed to providing staff that are knowledgeable in
governmental and Fund activities. This significantly reduces
the time spent by your staff explaining the basic elements
of how governmental pension funds work and operate.
This is considered a key factor in our success in assisting our
clients in meeting deadlines established by the State, County
and Fund Boards.
We have had great success in following this approach with
other governmental agencies and funds and we are confident
that our prior experience in its application will lead to a
successful delivery of the audit. A large part of this success
will be tied to the Fund's ability to deliver the requested in-
formation timely. We understand that as in all large agencies,
the Fund's staff is busy dealing with day to day operations.
We will make sure to provide requests for information with
sufficient enough lead time to not be disruptive to the Fund's
staff. We will work with the Fund's staff to encourage open
communication in order to mitigate delays and/or misunder-
standings. We do not anticipate that anything more than
what has been presented in the Request for Proposal will be
required of the Fund however if there is such a need, we will
communicate that in writing to the Fund's management.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 19
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We estimate that the engagement will require approximately 225 hours to complete.
Below is a tentative schedule for performing key aspects of the audit:
PROCEDURES Engagement
Partner Supervisor
Senior
Auditor
Staff
PRELIMINARY PLANNING – SEPTEMBER/OCTOBER 2014
Preliminary discussions – entrance meetings T T
Obtain understanding of service objectives T T T
Meet with predecessor auditor and review prior audit work papers T T
Prepare audit planning memorandum T
Identify significant issues, review, evaluate and document internal controls T T T
Assess risk T T T
Develop detailed audit programs T T
PERFORM AUDIT PLAN – OCTOBER/NOVEMBER 2014
Test internal controls T T
Test compliance with laws, regulations, contracts, grants and the
Fund's policies T T T
Substantive test of revenues, expenditures, procurement, payroll, etc.T T
Review minutes and other agreements T
COMPLETION AND DELIVERY – DECEMBER 2014
Complete review for subsequent events and obtain
management representations T T
Prepare reports T T T
Review draft of all reports for subsequent events and obtain
management representations T T
Issue report on findings and management letter* T T
Attend meetings with Management and Board, as required*T T
*Before January 1st as required in the Request for Proposal.
NOTE; This Schedule can be adjusted at the request of the Fund and we commit to perform the work within the specified
time period.
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 20
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Appropriate Planning and Utilization of Staff
We understand the significance and necessity of proper
planning as it relates to performance of a successful and
timely audit. An important aspect of proper planning is our
Engagement Partner’s advance coordination and specific
instruction with the Fund’s Management, allowing an
efficient utilization of staff regarding both preparation of
supporting schedules and reconciliations, in addition to
essential document/record gathering.
Electronic Workpapers
In keeping with our philosophy of providing services
that you would expect from a large national firm, we use the
latest paperless audit software and networking on our audit
engagements. Electronic workpapers continue to improve
productivity and efficiency in the audit process. These
efficiencies are passed on to our clients through lower fees
and time savings. The Fund’s workpapers are scanned or
imported directly into our audit programs saving the Fund
time and the cost of copying or printing such workpapers.
Year-Round Involvement
Our involvement with the Fund does not end when our
financial statements are issued. We remain involved with
the Fund through our monthly reviews of the minutes of the
Fund’s Board of Trutess meetings and communications
regarding new accounting standards that have been issued
that may affect future audits. Our year-round involvement
ensures a timely and efficient audit and helps us and the Fund
address any issues before the audit.
Identification of Anticipated Potential Audit
Problems
We are proud of our recognition as a technical resource
for accounting and auditing standards. We keep abreast of
emerging technical issues with our clients and communicate
accordingly. We do not anticipate any potential audit
problems. Our service team understands the issues relevant
to the Fund. The combination of our Firm’s resources, level
of partner involvement and experienced team members
provides an excellent service team of professionals capable
of servicing your needs.
Regular communication will be ongoing with the Fund’s
personnel, allowing for timely knowledge of matters as they
arise. When we learn of matters the Fund may not be aware
of, we will be active in conveying relevant information.
We understand the audit and accounting requirements
affecting your audit. As with other issues that may arise, we
will work with management throughout the year to achieve
appropriate resolution.
F. PROPOSED FEE SCHEDULE
The following schedule summarizes our proposed
“ALL-INCLUSIVE” fee for the engagement, which includes
all out-of-pocket costs.
AC&C’s price proposal to complete the annual audit for
the fiscal years ending September 30, 2014 is as follows:
PRICE PROPOSAL
September 30, 2014 $12,000
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 21
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Cost for Additional Services
The following schedule summarizes our standard hourly
rates as requested by the Fund:
G. LIABILITY INSURANCE
See Appendix C. for Insurance information.
Personnel Classification
Standard Hourly
Billing Rate
Proposed
Hourly Billing
Rates
Quality Control Partner $275 $225
Engagement Partner $250 $175
Director/Senior Manager $225 $150
Manager $200 $120
Supervisor $150 $100
Accounting Senior $125 $80
Accounting Staff $100 $60
Administrative $40 $25
City of Palm Beach Gardens
Firefighters' Pension Fund
Proposal for Auditing Services
Alberni Caballero & Company, LLP
page 22
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CONCLUSION:
ALBERNI CABALLERO & COMPANY, LLP
IS THE “RIGHT” CHOICE FOR THE CITY OF PALM
BEACH GARDENS FIREFIGHTERS' PENSION FUND
WE PLEDGE WE WILL:
•Provide a qualified and experienced audit team possessing
knowledge of the operation and administration of the
Fund compliance and legal requirements, and accounting
and reporting for operations pursuant to auditing
standards and legal requirements
•Demonstrate our commitment to quality client service
through:
•Ease of accessibility
•Prompt response to questions, comments, or requests
•Insight and suggestions regarding internal controls,
management, and operation, as proper, for both
financial and compliance considerations
•Provide value and services above and beyond the
traditional auditor’s “product” - we will
“go the extra mile”
•Coordinate with the Fund’s personnel, to ensure
minimum disruption and maximum contribution of
the Fund’s staff
•Develop and maintain open lines of communication
with the Fund to help expedite the audit process and
avoid awkward end-of-engagement “surprises”
•Technical advice and GASB Standards implementation
at no additional cost to the Fund.
•Develop and maintain open lines of communication
•The partners and staff of Alberni Caballero &
Company, LLP are committed to providing the Fund
with our resources and specialized expertise. We are local
with all decision making at the local level. We have the
technical expertise and experience without the high cost.
We vow to work closely with the Fund’s staff to accomplish
not only those minimum requirements set forth in your
Request for Proposal, but also to exceed those expectations.
Letters of Recommendation
APPENDIX A
Licenses to Practice in The State of Florida
APPENDIX B
Insurance
APPENDIX C
Peer Review Report
APPENDIX D
Public Entity Crimes Sworn Statement
APPENDIX E
Goldstein Schechter Koch, P.A.
Proposal for
Professional Auditing Services
City of Palm Beach Gardens Firefighters’ Pension Fund
June 30, 2014
Submitted by:
Goldstein Schechter Koch, P.A.
2121 Ponce De Leon Boulevard
11th Floor
Coral Gables, Florida 33134
(305) 442-2200
FAX (305) 444-0880
www.gskcpas.com
Vincent Carrodeguas, CPA
vincent.carrodeguas@gskcpas.com
Clement Johns, CPA
clement.johns@gskcpas.com
Coral Gables Hollywood Boca Raton Ft. Lauderdale
(305) 442-2200 (954) 989-7462 (561) 395-3550 (954) 351-9800
Goldstein Schechter Koch, P.A.
TABLE OF CONTENTS
Pages
Letter of Transmittal 1 - 2
Auditor Qualifications:
Profile of our Firm
Professional Staff Services
Firm Services
Audit Approach
Summary of Qualifications
Firm Organization/Service Team/Assigned Personnel 3 - 12
Engagement References 13 - 18
Services to be Provided and Timing of Services:
Work Schedule 19 - 20
Additional Information:
Independence, License to Practice in the State of Florida,
Insurance, Disciplinary Action and Litigation,
and Equal Opportunity Employer ............................................. 21 - 22
Engagement Fee Structure 23
Certification of Good Faith 24
Resumes 25 – 27
Attachments:
Peer review report
Statement Under Florida Statues 287.133(3)(a)
Goldstein Schechter Koch, P.A.
3
AUDITOR QUALIFICATIONS
Profile of Our Firm
Goldstein Schechter Koch, P.A. (the “Firm”) is one of the oldest and
largest local public accounting firms based in South Florida, serving
clients from our Coral Gables and Hollywood, Florida offices. As a
dedicated group of over 100 professionals with over 50 years of service
to South Florida businesses, non-profit organizations, entrepreneurial
organizations, public employees’ pension plans, and individuals, we are
proud of the long list of clients we have grown with and served for
decades.
The Firm is a member of the American and the Florida Institute of
Certified Public Accountants, Florida Public Pension Trustees
Association (FPPTA), the PCAOB and is associated worldwide with
the BDO Seidman Alliance. The BDO Alliance is a worldwide
consortium of elite accounting firms providing strategic support to its
members in such areas as accounting and auditing, regulatory
compliance and taxation throughout the world. If there were a situation
whereby our firm may require the support of our National Firm alliance
members, we collaborate in a seamless manner while always maintaining
the goals and priorities of the client.
The Firm represents a number of public pension plans throughout South
Florida. Our extensive expertise with these organizations provides us
with in depth knowledge of accounting and auditing for these entities.
Our success over the years has been the result of a strong commitment to
providing personalized quality service to our clients. Our firm currently
has numerous public pension plans as clients and we will list this
experience for you.
In addition, our firm represents clients in a wide range of industries. We
are a full service audit, accounting, and consulting firm in domestic and
international finance, tax, accounting and management advisory services.
In all matters, we respond individually to our clients with
professionalism and cost effectiveness that permits them to pursue the
best opportunities for growth.
Goldstein Schechter Koch, P.A.
4
Professional Staff Services
Our firm has a total of 23 partners, 71 professional staff, and 27
administrative staff. The professional and administrative staff resources
available to you through our firm are as follows:
Coral Fort
Total Hollywood Gables Lauderdale
Partners 23 6 13 4
Managers and Directors 29 9 17 3
Supervisors, Seniors & Staff
Accountants 42 13 27 2
Administrative 23 6 15 2
Systems and Technical
Support 4 1 3 -
121 35 75 11
Firm Services
Our firm provides a variety of accounting, auditing, tax, litigation
support, accounting and consulting services. The following are some of
the professional services that are available:
Performance of annual financial audits for Retirement Plans
and Trusts within Florida Statues 175 and 185 and DOL
Rules and Regulations for Reporting and Disclosure; Private
and Government sponsored plans;
Performance of annual financial and compliance audits of
non-profit organizations in accordance with Government
Auditing Standards, OMB A-133 and the Florida Single
Audit Act;
Full service corporate and individual income taxation
services including multi-state disciplines with specialties in
sales tax and alternate taxation strategies;
Design and implementation of internal controls;
Information systems and software consulting services
through BDO Alliance member firms including industry
software conversion, software set up and design;
Expense reduction consulting thru BDO Alliance member
firms;
Goldstein Schechter Koch, P.A.
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Firm Services - (continued)
Consulting services including process improvement, bench
marking, new business development, liquidity and efficiency
analysis and information technology services;
Assistance in the development and implementation of
general fixed asset acquisitions and utility asset property
control systems;
Assistance in the preparation and development of economic
projections and various investment strategies, including
feasibility studies of maintaining investment portfolios for
defined benefit pension plans administered by independent
insurance companies;
Performance of special compliance audits to ascertain
compliance with applicable local, state and federal laws and
regulations (GAS, OMB A-133, Florida Single Audit Act,
etc.);
Internal Audit Department;
Business valuations;
Outsource CFO and controller services;
Corporate and Organizational restructure work;
Tax and personal financial statement services including but
not limited to estates and trusts, international tax, payroll tax,
and sales tax; and
Assistance in litigation, including testimony in court.
Our Firm continuously provides professional services to a number of
Public Employee Pension Plans. References from some of our clients
(and firms we have worked with in conjunction with these clients) are
listed on pages 13 to 18. Please notify us if any additional information is
desired.
Goldstein Schechter Koch, P.A.
6
Audit Approach
The scope of our audit is directed primarily towards the expression of an
unqualified opinion on the financial statements. If it becomes evident
that an unqualified opinion cannot be rendered on your financial
statements, you will be promptly notified of the circumstances
surrounding our findings. Primarily, we will conduct the audit of the
financial statements using a statement of net assets available for plan
benefits approach. That being said, emphasis is placed on non-low risk
areas of exposure and procedures are designed to place emphases on
these areas more so, than low risk areas. Our audit programs are tailored
to enable the efficient and effective performance of the audit. We will
conclude on this assessment using management as a participant in the
analysis. As appropriate we will use analytical review procedures to
determine any further areas of focus to further the scope of the
engagement. As a matter of course, our team uses technology to
streamline the efficiency and effectiveness of our procedures. We will
advise you of the type of electronic data we will require during the
planning phases of the audit.
There are no audit services that we will not be able to perform as the
primary auditors. Every year, we conduct a two-day training session for
all audit professionals performing Public Employee Pension Plan Audits.
This training is not only based on accounting and auditing standards
applicable to these audits but also on practical experience gained over the
years from the performance of those audits.
As part of the Firm’s audit approach, we will set a timetable of our
procedures. We will meet with the Fund’s Finance Director and
management to set and review the timetable as needed in order to
meet your needs.
Planning and Scheduling: We will discuss current year audit issues
with management, perform preliminary analytical procedures,
prepare confirmations, review permanent file information, review
minutes, and prepare a list of schedules we will need prepared.
Year-End Field Work: We will obtain and review management’s trial
balance and draft of financial statements and perform audit tests. We
anticipate completing fieldwork by the time outlined in our meeting
with the Fund's management. All audits will be reviewed by our
Director and engagement Partner in detail to ensure the highest
accuracy. In addition, the Firm has quality control procedures
whereby a second partner also performs an independent technical
review of the engagement.
Goldstein Schechter Koch, P.A.
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Audit Approach - (continued)
Issuance: We will issue the final financial statements in a timely
manner, in accordance with the schedule developed with
management during the planning stage phase of the audit. In
addition, we are committed to providing a useful management letter,
which will include proactive recommendations and report
opportunities to improve internal controls and accounting procedures
and processes to management. The management letter is utilized to
communicate significant deficiencies in internal control (formerly
known as reportable conditions). In addition, we also utilize the
management letter as a tool to provide positive communications
about areas, including operational matters that came to our attention
during the course of the audit that could be improved upon.
All fieldwork is supervised and managed by the engagement Partner and
audit Director. Field staff will include the audit Director, a supervisor
auditor, and staff accountants. We understand your preferences for
having experienced staff on the engagement. We can assure you that we
will be able to staff this engagement with qualified and appropriately
trained professionals with proper supervision before, during and after
fieldwork.
We pride ourselves in our ability to effectively communicate audit results
and findings to our clients. During the process of the audit, the audit
team will have continual communication with your staff regarding the
status of the engagement.
It is standard procedure for our firm to schedule an exit conference with
client management officials upon the completion of our audit before any
reports and management letters are submitted to you in final form.
The exit conference gives us one more opportunity to thoroughly discuss
the points noted and to make the most meaningful recommendations.
Use of Technology
Our Firm has dedicated significant resources in recent years to produce a
highly technological and paperless environment. We have installed top
tier software for the production of our tax returns, audited financial
statements, and have also developed an environment where all
documents are stored electronically for easy access from anywhere we
can gain internet access. Our auditors have various resources, including:
CaseWare for our workpapers prepared along with Microsoft Excel
and Word.
Goldstein Schechter Koch, P.A.
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Audit Approach - (continued)
Use of Technology- (continued)
Furthermore, during the normal course of the audit engagement, we
utilize data extraction software in order to manipulate and analyze
certain fiscal information to assist us in our procedures. In order to
accomplish this, we ask management to provide us specific
accounting information in a machine readable format typically in the
client computer software’s native exporting format in order to
conduct this type of analysis. This automation is done using “IDEA”
software and provides us efficient and additional insight to our
procedures. All of our audit managers in the Coral Gables and
Hollywood offices are trained in using this software.
Each audit team has a scanner to scan client paper documents into
electronic documents, as well as flash drives for easy transfer of
documents from client computers.
Tax and Assurance services are all provided in a paperless
environment and we encourage our clients to submit all information
in electronic form.
Other supporting software – which includes QuickBooks, TValue,
etc.
All of the team members are connected to each other via a wireless
network for easy transfer of documents from one auditor to another.
Technology Department
Audit Capabilities
Completely paperless audit work papers using Caseware, IDEA
and Adobe Acrobat
Acceptance of client electronically prepared work papers in all
formats, i.e. Excel, Word, Acrobat, etc.
Mark-up of client prepared work papers and firm prepared work
papers using Adobe Acrobat
Scanning of paper documents provided by client using portable
scanners
Wireless communications with GSK office network using
Verizon 4G wireless air cards
Electronic documents to clients using Adobe Acrobat encryption
with or without password protection and Zix email encryption
Electronic confirmations of client bank accounts
Goldstein Schechter Koch, P.A.
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Audit Approach - (continued)
Technology Department - (continued)
Tax Capabilities
Electronic tax preparation using CCH Prosystem fx; Tax
Electronic filing of tax returns and extensions
Post-preparation scanning of tax files for storage in off-site,
hosted document management system
Document Management
All client documents are archived in Thomson Reuters
GoFileRoom, a hosted (Saas – Software as a service) document
management system
All stored documents are OCR scanned
All documents are indexed by client, year, file section and
document type
All documents are accessible from anywhere using an internet
connection
Virtualized Servers
All production servers are virtualized using VMware on
EqualLogic SAN devices
11Tb (Terabyte) of SAN storage capacity
Replicated of servers and data to a hardened secure (category 5
Hurricane rated) offsite data storage site providing redundancy
of data
Security
External security penetration testing on all network devices
(computers, switches, routers, and firewalls), received an
exceptional score of 0 to 5, where 0 shows least risk of
penetration by an external source
Zix used on all emails (content and attachments) for encryption
to provide the highest level of security during transfer of
information to/from the clients
Availability of custom secure web portal access for large files
transfer to/from clients
Awards
2005 Technology Innovator of the Year Award by
Accounting Technology Magazine
Goldstein Schechter Koch, P.A.
10
Summary of Qualifications
Our firm is a leader in providing services to Public Employee Retirement
Plans.
Our firm and professionals have in-depth experience in performing
public pension plans and non-profit audits including those under GAS,
reviews and annual reports and tax services for all types of organizations.
Our firm has a public pension plan and non-profit group that is staffed
with professionals that are dedicated to this area of expertise and are
extensively trained for this specialty. If we are successful in our bid, we
will assign personnel to these engagements that have these specific
experiences and are prepared to provide you the highest quality of
service possible. Furthermore, as a BDO Alliance firm who is
considered one of the premier firms within the Alliance, we have almost
unlimited resources and benchmarking information available to us for
Public Employee Retirement Plans across the State of Florida, as well as
the country. We continue to maintain our commitment to excellence in
our field by:
Having our professionals dedicated solely by area of practice
emphasis for Assurance services, Assurance Specialties, Tax
compliance, Litigation Support, Business Valuations and other
practice disciplines within our Firm.
Regularly attending education, trainings, seminars and conferences
related by practice discipline throughout the year to continually
develop strategies to better serve our clients.
Developing and presenting in-house and local seminars for our
clients.
All CPA’s assigned to the engagement have properly maintained
CPE in governmental accounting as required by the Board of
Accountancy.
Goldstein Schechter Koch, P.A.
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Firm Organization/Service Team/Assigned Personnel
The entire resources of the Firm will be available to service the Fund.
While the thrust of the work performed will be in the auditing field, the
special expertise of each of our multi-faceted professionals will be
available if needed. We understand that instances may arise where
additional services maybe required by your Fund. We are committed to
respond in a timely fashion to those additional needs using the significant
depth and resources of our Firm and affiliates.
The team assigned to service the Fund brings to the account a wealth of
Public Pension Plan auditing experience. The members of your proposed
service team possess many years of experience and are located at our
Hollywood and Coral Gables offices.
Engagement Partner - Vincent Carrodeguas, CPA
As engagement Partner, Mr. Carrodeguas will have the following
responsibilities:
Overall direction of the engagement.
Selection and focusing of the resources of the firm necessary for the
success of the assignment.
Assurance of technical quality of the final report.
Audit Executive Director – Clement J. Johns, CPA
As executive director, Mr. Johns will be responsible for:
Working with the Engagement Partner as the primary contact for the
engagement.
On-site coordination of the engagement.
Direct participation in the execution of engagement objectives.
Goldstein Schechter Koch, P.A.
12
Audit Director – Rosa Salum, CPA
As the director on the engagement, Ms. Salum will be responsible for the
overall supervision of the audit team and managing the engagement
timeline, nature, timing, and extent of audit procedures as well as all
audit requests for the work required to meet the engagement objectives.
Assistants
The engagement staffing will be completed with professionals trained in
governmental accounting and auditing as needed in order to complete the
engagement in a timely fashion.
Selected resumes of key members of the engagement service team are
included.
Our Firm believes that rotation of an engagement’s key personnel should
be of extreme significance. We will promptly notify you if a key
member of your engagement team is changed during our tenure as your
auditors. This includes changes made as a result of termination or
resignation or from the voluntary transferring of engagement personnel
by the Firm.
The parameters under which our team will operate are quality, efficiency
and the requirements that the completion dates be met. Our Firm is
committed to maintaining its leadership role in the area of assurance
services. We value the acknowledgment of our expertise in this ever-
evolving arena. If selected, all the resources of our Firm will continue to
be available to the organization so that all tasks may be accomplished
and all goals reached in a timely, economical and professional manner.
Our Firm recognizes accounting, taxation and auditing as a business of
meeting imposed deadlines. Each engagement will be carefully reviewed
and the schedule confirmed with you in order to meet the due dates.
Goldstein Schechter Koch, P.A.
13
ENGAGEMENT REFERENCES
In the area of audits of Public Employee Retirement Funds and
familiarity with Florida Statutes 112, 175 and 185, our firm has
significant experience as evidenced by the following list of current and
prior Public Employee Retirement Fund clients provided as references:
Fund Years Contact
Hollywood Firefighters’ 20 years Ms. Jennifer Kerr
Pension System
3401 Hollywood Blvd.
Hollywood, FL 33021
(954) 967-4331
Hollywood Police 16 years Mr. Dave Williams
Pension Fund
3250 Hollywood Blvd.
Hollywood, FL 33021
(954) 967-4395
Town of Davie Police 15 years Mr. Dave Williams
Employees Pension Plan
13790 N.W. 4th Street, Suite 105
Sunrise, FL 33325
(954) 636-7170
City of Miramar Police Officers’ 14 years Mr. Doug Falcon
Retirement Plan
c/o FHA-TPA
6861 S.W. 196th Avenue
Fort Lauderdale, FL 33332
(954) 366-0111
City of Miramar Firefighters’ 13 years Mr. Alan Park
Pension Fund
8909 Miramar Pkwy.
Miramar, FL 33025
(954) 435-4406
City of Miramar Pension Plan 11 years Ms. Carolyn Furlong
for General Employees
c/o Benefits USA, Inc.
3810 Inverrary Blvd., #303
Lauderhill, FL 33319
(954) 330-2068
Goldstein Schechter Koch, P.A.
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ENGAGEMENT REFERENCES - (continued)
Fund Years Contact
City of Lauderhill Firefighters’ 12 years Ms. Barbara White
Retirement System
126 Cheffey Road
Palatka, FL 32177
(386) 336-7573
City of Pompano Beach General 8 years Ms. Madeline Klein
Employees’ Retirement System
555 South Andrews Ave., Suite 106
Pompano Beach, FL 33069
(954) 782-2660
Town of Palm Beach Firefighters’ 4 years Mr. Bill Hanes
Retirement System
P.O Box 2112
Palm Beach, FL 33480
(561) 227-6449
Town of Palm Beach Police 4 years Mr. Bill Hanes
Officers’ Retirement System
P.O Box 2112
Palm Beach, FL 33480
(561) 227-6449
Town of Davie 6 years Ms. Susy Pita
Firefighters’ Pension Plan
P.O. Box 490837
Leesburg, FL 34749
(352) 787-9795
City of Sunrise General 12 years Mr. Scott Bauer
Employees Retirement Fund
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
(561) 624-3277
City of Sunrise Firefighters’ 7 years Ms. Carolyn Furlong
Retirement Fund
c/o Benefits USA, Inc.
3810 Inverrary Blvd., #303
Lauderhill, FL 33319
(954) 730-2068
Goldstein Schechter Koch, P.A.
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ENGAGEMENT REFERENCES - (continued)
Fund Years Contact
City Pension Fund for 11 years Ms. Celia Borenstein
Firemen and Policemen the Locke
City of Miami Beach
605 Lincoln Road, Suite 400
Miami Beach, FL 33139
(305) 673-7039
City of Oakland Park 9 years Ms. Carolyn Furlong
Retirement System
for Police and Firefighters
c/o Benefits USA, Inc.
3810 Inverrary Blvd., #303
Lauderhill, FL 33319
(954) 730-2068
City of Coral Gables 4 years Ms. Kimberley Groome
Retirement System
405 Biltmore Way
Coral Gables, FL 33334
(305) 460-5281
Coral Gables Police Officers 10 years Ms. Mei Fang
Retirement Trust Fund Plan
c/o Benefits USA, Inc.
3810 Inverrary Blvd., #303
Lauderhill, FL 33319
(954) 730-2068
City of Daytona Beach 8 years Mr. Scott Bauer
Police and Fire
Department Pension Fund
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
(561) 624-3277
City of Miami Fire Fighters’ 9 years Mr. Robert Nagle
and Police Officers Pension Plan
1895 SW 3rd Avenue
Miami, FL 33129
(305) 858-6006
Goldstein Schechter Koch, P.A.
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ENGAGEMENT REFERENCES - (continued)
Fund Years Contact
Palm Bay Police & Firefighters 7 years Ms. Kathy Adams
Pension Fund
P.O. Box 10225
Palm Bay, FL 32910-0225
(407) 724-8877
North Naples Fire 6 years Ms. Joan Wall
Control & Rescue
District Firefighters’
Pension Plan
2955 Myrtle Oak Circle
Davie, FL 33328-6793
(954) 723-9521
City of Wilton Manors 8 years Ms. Judith A.Hoekstra
Florida Pension Plan for
General Employees and Police
524 Northeast 21st Court
Wilton Manors, FL 33305
(954) 390-2146
City of Coral Springs, Florida 5 years Ms. Gina Orlando
Firefighters’ Retirement Plan
9551 W. Sample Road
Coral Springs, FL 33065
(954) 344-5934
Boynton Beach Police 4 years Ms. Barbara La Due
Pension Fund
P.O. Box 310
Boynton Beach, FL 33425-0310
(561) 742-6081
City of Miramar Senior 4 years Mr. Ian Thomas
Management Retirement Plan
c/o FHA-TPA
6861 S.W. 196th Avenue
Fort Lauderdale, FL 33332
(954) 366-0111
Goldstein Schechter Koch, P.A.
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ENGAGEMENT REFERENCES - (continued)
Fund Years Contact
City Pension Fund for 8 years Mr. James Fisher
Firefighters and Police Officers
in the City of Pembroke Pines
1951 NW 150th Avenue, Suite 104
Pembroke Pines, FL 33028
(954) 431-3124
Deerfield Beach Municipal Police 4 years Mr. Scott Bauer
Officers’ Pension Plan
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
(561) 624-3277
Key West Police Officers 4 years Ms. Susy Pita
Firefighters’ Pension Fund
P.O. Box 490837
Leesburg, FL 34749
(352) 787-9795
Riviera Beach Municipal 4 years Ms. Denise McNeill
Firefighters’ Pension Trust Fund
4360 Northlake Blvd., Suite 206
Palm Beach Gardens, FL 33410
(561) 624-3277
Miami Beach Employees’ 5 years Mr. Rick Rivera
Retirement Plan
1700 Convention Center Drive
Miami Beach, FL 33139
City of Lauderhill Police 6 years Mr. David Williams
Officers’ Retirement Plan
c/o Precision Pension
Administration, Inc.
13790 NW 4th Street, Suite 105
Sunrise, FL 33325
City of Plantation Police 4 years Ms. Liz Andrews
Officers’ Pension Plan
c/o Liz Andrews, Benefits USA
451 NW 70th Terrace
Plantation, FL 33317
Goldstein Schechter Koch, P.A.
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ENGAGEMENT REFERENCES - (continued)
Fund Years Contact
Riviera Beach Police Pension Fund 2 years Ms. Althea Leigh-Lodge
c/o Benefits USA, Inc
3810 Inverrary Blvd, Suite 303
Lauderhill, FL 33319
City of Wilton Manors Volunteer 8 years Ms. Joan L. Wall
Firefighters Retirement System
2020 Wilton Drive
Wilton Manors, FL 33305
Hialeah Gardens Police Officers’ 5 years Ms. Joan L. Wall
Pension Trust Fund
2955 Myrtle Oak Circle
Davie, FL 33328-6739
During the past 4 years we have gained six audits and lost four audits as
a result of firm rotation.
Our firm also regularly attends seminars and conferences presented for
Public Employee Pension Plans, in order to stay abreast of all current
developments, and have spoken at the Florida Public Pension Trustees
Association Conferences and Trustee Schools.
The last, but probably the most important qualification we offer is that
Mr. Bernard Schinder, a partner in our Firm, has previously served on a
pension board for over 8 years. We believe that this allows our firm to
have a greater insight not only as auditors, but to also assist the board
members in other areas related to their board responsibilities. The
attached biographies detail the backgrounds of the key individuals
involved in the audit of Public Employee Retirement Fund section of our
practice.
Goldstein Schechter Koch, P.A.
19
SERVICES TO BE PROVIDED AND TIMING OF
SERVICES
Work Schedule
An audit of the financial statements of the City of Palm Beach Gardens
Firefighters’ Pension Fund as of and for the period ended September 30,
in accordance with generally accepted auditing standards accepted in the
United States of America and the standards applicable to financial audits
contained in Government Auditing Standards issued by the Comptroller
General of the United States of America. We recognize your deadline of
delivering the audit report by January 1, following the fiscal year end and
will accommodate your desired schedule by conducting planning in
October, fieldwork in November, and issuance of the audit reports by
January 1, of the following the fiscal year end. If there is a change in the
timing of the engagement, including start dates we will immediately
discuss with you.
In addition, we shall submit, a comprehensive management letter (SAS
115 Report) which shall identify any internal control weaknesses, assess
their effect on financial reporting and propose steps to improve upon or
eliminate those weaknesses, if applicable. In addition, we will
communicate to the Board of Trustees, Management, Finance Committee
or equivalent, the summary of all significant matters and results of the
engagement in our report to Governing Body (SAS 114 Report).
The auditor’s report, financial statements and management letter, and
SAS 114 Report will be presented to the Board of Trustee’s by the date
agreed upon in the planning phase of the audit. We shall provide the
required number of original copies of the audited financial reports.
The Partner in charge of the audit shall communicate and/or meet with
the Board of Trustees, audit committees, executive management, or their
designees, as deemed necessary.
We understand that timeliness is critical in the performance of all
services. We will coordinate and solidify the due dates, the separate
responsibility of the auditors and Fund’s staff for schedules and adjusting
entries at a pre-audit meeting with your staff prior to September 1st of
each year. The Fund will make necessary records available to us though
the year to assist in this regard.
Goldstein Schechter Koch, P.A.
20
SERVICES TO BE PROVIDED AND TIMING OF
SERVICES - (continued)
Work Schedule - (continued)
During fieldwork, if it is required, we will report any significant potential
issues and/or adjustments as they are determined.
The Fund understands that the work papers are the property of the Firm
and shall be held locally for a period of seven years. Work papers shall
be available for examination or duplication without charge to authorized
personnel, and representatives of Federal or State Agencies upon request
of that Agency in accordance with Federal or State Law and other
regulations.
We agree to notify the Board of Trustees if any regulatory or other
government agency requests a review of the audit work papers
concerning the organization.
An integral part of any successful engagement is the role of the client’s
staff. We fully endorse the use of the Fund’s staff in preparation of
supporting schedules, reconciliations and document retrieval. We will
provide you with a list of all schedules to be prepared by the Fund. The
Accounting/Finance Department staff should be available during the
audit to provide information, documentation and explanations to our
engagement team.
We understand the books, records and files of the Fund will always be in
the property of the Fund, used exclusively at the direction of the
Trustees.
Goldstein Schechter Koch, P.A.
21
ADDITIONAL INFORMATION
Independence
The professionals of the Firm are independent of the Fund including its
officials and related parties, at the date of this proposal, as defined by the
following rules, regulations, and standards:
Au Section 220 - Statements on Auditing Standards
issued by the American Institute of Certified Public
Accountants;
ET Sections 101 and 102 - Code of Professional
Conduct of the American Institute of Certified Public
Accountants;
Chapter 21A-21, Florida Administrative Code and
§473.315, Florida Statutes; and
Government Auditing Standards, issued by the
Comptroller General of the United States.
On an annual basis, all members of the Firm are required to confirm in
writing that they have no personal or financial relationships or holdings
that would impair their independence with regard to the Firm’s clients.
Independence is a hallmark of our profession. We encourage our staff to
use professional judgment in situations where our independence could be
impaired or the perception of a conflict of interest might exist. In the
government sector, public perception is as important as professional
standards. Therefore, the utmost care must be exercised by independent
auditors in the performance on their duties.
The Firm is willing to acknowledge that we are a fiduciary of the Fund as
defined in the Employee Retirement Income Security Act of 1974
("ERISA") and Section 112.656, Florida Statutes.
License to Practice in the State of Florida
The Firm (including all certified personnel assigned to this engagement),
is properly licensed and registered in the State of Florida with the
Department of Business and Professional Regulation, Division of
Certified Public Accountants (Board of Accountancy) under a current
and active license.
Goldstein Schechter Koch, P.A.
22
ADDITIONAL INFORMATION - (continued)
Insurance
The Firm has the necessary and adequate general liability insurance and
professional liability insurance in excess of $2 million and $5million,
respectively. Additionally, the firm maintains all other applicable
insurance such as workers compensation, bonding, personal injury,
property damage and other applicable coverage.
Disciplinary Action and Litigation
The Firm including their personnel have not had enforcement actions
pending or threatened by the Florida State Board of Accountancy or any
other regulatory agency.
No disciplinary actions have ever been taken against our Firm, its
predecessor, or any members thereof by any state regulatory agencies or
professional organizations, nor are any such actions pending.
Furthermore, the Firm had not had any action, suit, proceeding, inquiry,
investigation, at law or equity before or by a court, governmental agency,
public board or body, pending or, to the best of our knowledge,
threatened, which would in any way prohibit, restrain or enjoin the
execution or delivery of our obligations or diminish our financial ability
to perform the terms of the proposed contract.
There have been no inquiries made by federal and state regulatory
agencies based on desk reviews of audit reports. There are no pending
reviews by any federal or state agencies and all reports filed have been
accepted and are in compliance with applicable laws and regulations.
Goldstein Schechter Koch agrees that the agreement shall be constructed
under the laws of the State of Florida and federal laws where applicable.
The Firm agrees that the venue for any judicial proceeding will be in the
county in which the Board sits.
Equal Opportunity Employer
Goldstein Schechter Koch, P.A. is an Equal Employment Opportunity
Employer. While great care is exercised in selecting and training
potential professional staff members, it is our policy to select qualified
applicants regardless of race, color, national origin, religion, age,
handicapped status, sex or marital status.
Goldstein Schechter Koch, P.A.
23
ENGAGEMENT FEE STRUCTURE
In trying to keep in mind the current financial goals of clients in the
industry and our commitment to your future success, we have developed
the following fee proposal for the services requested for the year ended
September 30. Please keep in mind that the conditions of the underlying
records have a direct impact on the work estimated and the fees quoted.
These fees consider the condition of the accounting records and the
assistance provided by the internal accounting team in preparing for the
audit engagements. The fee for the audit will be $14,000 (inclusive of out
of pocket expenses), subject to changes in authoritative guidance or other
industry adjustments that will have a material impact on audit fees.
FEE PROPOSAL
For the FY 2014
Hours Rates Total
Partners 5 $ 360 $ 1,800
Directors 10 250 2,500
Supervisory staff 30 220 6,600
Staff 80 155 12,400
Subtotal-audit 23,300
Discount(*) * (9,300)
Total Fees for FY 2014 $ 14,000
Any additional service by the City of Palm Beach Gardens Firefighters’
Pension Fund will also be based on the above rate schedule.
* The Firm is willing to provide these discounts from our standard rates
to the City of Palm Beach Gardens Firefighters’ Pension Fund for
goodwill and for the betterment of the City of Palm Beach Gardens
Community.
Goldstein Schechter Koch, P.A.
25
Vincent Carrodeguas,
CPA
Partner
Vincent Carrodeguas joined the Firm in 1996, and as
Partner, he heads the not-for-profit services group,
which encompasses audits, consulting and other
specialty services for not-for-profit organizations.
Throughout his career, his diversified practices
include domestic and international taxation,
auditing, expert witness testimony, general corporate
consultation including corporate and operational
restructure, benchmarking and process improvement.
A graduate of the University of Tampa receiving a
Masters in Business Administration and a Bachelor
of Science in Accounting, he has been a Certified
Public Accountant for the State of Florida since
1989 and a member of the American Institute of
Certified Public Accountants.
As an active collaborator of community and
philanthropic affairs, Mr. Carrodeguas is a Trustee
Member for the Coral Gables Chamber of
Commerce; Co-Chairman of the Board-audit
Committee for United Way; as well as a Committee
Member for its Consulting Investment Committee.
He has served as past President of the Board of
Directors for Switchboard of Miami, which services
the community with many outreach programs. Vince
was also the Secretary of the Kiwanis of
Westchester, a Charter Member of the Miami
Rowing Club, past Treasurer for The Bakehouse Art
Complex and is currently a member of the Aviation
Committee for the Beacon Council. Mr. Carrodeguas
is a past Director for the Florida Institute of CPA’s,
Inc. and a member of the America Institute of
Certified Public Accountants.
Phone: 305.442.2200 ext. 256
Email: vincent.carrodeguas@gskcpas.com
Assistant: Eva Sanchez
Goldstein Schechter Koch, P.A.
26
CLEMENT J. JOHNS, CPA, Executive Director
Qualifications
Baruch College, NY
BBA, Accounting, 1976
Long Island University, NY
MBA, 1978
Work History
Goldstein Schechter Koch, P.A.; Hollywood, Florida
Audit Director
Mr. Johns joined the firm in 1999 and currently leads the Firm's pension
plan service group, which includes the audits of Public Employee
Pension Plans. Mr. Johns has extensive experience in the audit of
pension plans, nonprofits and government entities.
Sharpton, Brunston & Company
Senior Audit Manager
Professional Affiliates
American Institute of Certified Public Accountants - Member
Florida Institute of Certified Public Accountants - Member
Leadership Hollywood, Class of 2007
Goldstein Schechter Koch, P.A.
27
ROSA SALUM, CPA, Director
Qualifications
Rosa Salum is a manager with Goldstein Schechter Koch with over 16
years of experience in both public accounting and private business. Rosa
was previously with Grant Thornton, LLP and gained significant
experience in accounting and auditing primarily in the areas of non-
profit, real estate, construction, restaurants and other service related
entities. She is a graduate of the University of Miami where she majored
in accounting receiving a Bachelor of Business Administration and a
Master of Professional Accounting. Rosa is a Florida CPA and
specializes in audit. She is a member of the American Institute of CPA’s
and the Florida Institute of Certified Public Accountants. Rosa’s
experience also includes billion dollar distribution companies, both
domestic and international, performance of audit standards reviews, and
instructor in local and international training courses on technical
accounting topics. Currently, Rosa is part of the Firm’s Public Employee
Pension Plans where she has gained over 5 years experience in the audit
of these plans.
Goldstein Schechter Koch, P.A.
28
SUGARMAN & SUSSKIND
PROFESSIONAL ASSOCIATION
ATTORNEYS AT LAW
Robert A. Sugarman♦ 100 Miracle Mile
Howard S. Susskind Suite 300
Kenneth R. Harrison, Sr. Coral Gables, Florida 33134
D. Marcus Braswell, Jr. (305) 529-2801
Pedro A. Herrera Broward 327-2878
Noah Scott Warman♦ Toll Free 1-800-329-2122
Ivelisse Berio LeBeau Facsimile (305) 447-8115
Dustin L. Watkins
Michael Gillman
♦Board Certified Labor
& Employment Lawyer
July 2, 2014
Board of Trustees
City of Palm Beach Gardens Firefighters’ Pension Fund
c/o Audrey Ross, Administrator
The Pension Resource Center
4360 Northlake Boulevard, Suite 206
Palm Beach Gardens, FL 33410
Re: Ch. 175 Share Account Payments to Eligible Members
Dear Trustees:
You have asked our opinion concerning the Palm Beach Gardens Firefighters’ Pension
Fund’s (hereafter “Fund”) payout of individual member share accounts. It is our understanding
that at their March 19, 2009 meeting, the Board formally authorized early partial payments of
Ch. 175 Share Accounts for those who retire or terminate service (i.e. those payments made prior
to the first valuation date of 9/30 after they terminate/separate from service). Such partial
distributions were limited to 50% of a member’s respective account balance as of their
termination date as a means of protecting Fund members in avoiding negative balances for such
early payouts which may be followed by market losses. It is also our understanding that the City
of Palm Beach Gardens ordinance was recently amended on May 2, 2013, to allow eligible
members to delay distribution of their respective Share Accounts until the earlier of either, a date
of their choosing after separation from service, or mandatory distribution age as set forth by the
Internal Revenue Code.
Based on the understandings set forth herein and the language of the governing
ordinance, there are two potential interpretations that the Board of Trustees (“Board”) may
reasonably follow in administering the Fund. First, the Board may interpret the verbiage to mean
that member share accounts shall be made available for payment thirty days after the first
applicable valuation date. Conversely, the Board may also interpret that the share accounts shall
actually be paid thirty days after the first applicable valuation date. Due to the logistical
unfeasibility of actually making the payments 30 days after the end of the fiscal year (i.e. 9/30)
coupled with the language articulating that participants will elect when the balance in their share
Board of Trustees
City of Palm Beach Gardens Firefighters’ Pension Fund
July 2, 2014
Page 2
accounts will be distributed, it would appear that the Board most reasonably may interpret the
ordinance in accordance with the former where payment of share account balances shall be made
available for payment thirty days after the first valuation date of 9/30 following termination or
separation from service.
Section 38-78 of the City of Palm Beach Gardens Code of Ordinances provides eligibility
restrictions as well as payment of benefit provisions. Here, it states in relevant part:
(5) Eligibility for benefits. Any member who terminates employment as a
firefighter with the city, upon application filed with the board, shall be entitled to
be paid the value of his individual member share account, subject to the following
criteria:
a. Retirement benefit.
1. A member shall be entitled to one hundred (100) percent of the
value of his share account upon normal or early retirement
pursuant to section 38-56.
2. Such payment shall be made as provided in subsection (6).
b. Termination benefit.
1. In the event that a member's employment as a firefighter is
terminated by reason other than retirement, death or disability, he
shall be entitled to receive an amount equal to the vested portion of
his share account balance. The vested portion shall be determined
in accordance with the schedule in section 38-59, subsection (3).
2. Such payment shall be made as provided in subsection (6).
c. Disability benefit.
1. In the event that a member is determined to be eligible for either
an in-line of duty disability benefit pursuant to section 38-58,
subsection (1) or a not-in-line of duty disability benefit pursuant to
section 38-58, subsection (3), he shall be entitled to one hundred
(100) percent of the value of his share account.
2. Such payment shall be made as provided in subsection (6).
d. Death benefit.
Board of Trustees
City of Palm Beach Gardens Firefighters’ Pension Fund
July 2, 2014
Page 3
1. In the event that a member dies while actively employed as a
firefighter, one hundred (100) percent of the value of his share
account shall be paid to his designated beneficiary as provided in
section 38-61.
(6) Payment of benefits. If a member terminates employment and is otherwise
entitled to receive all or a portion of the balance in the member's share account,
the member's share account shall be valued on the next valuation date as provided
for in subsection (3) above, following termination of employment. Payment of the
calculated share account balance or the vested portion thereof are payable not
later than thirty (30) days following the valuation date and shall be paid in one
(1) lump sum payment. No optional forms of payments shall be permitted.
Participants shall elect when such distribution of the balance in their share
accounts will take place. Elections for distributions shall be made to the board of
trustees in writing in such a manner and form acceptable to the board.
Notwithstanding, any payments to a member must comply with the minimum
distribution requirements of the IRC 401(A)(9), and are subject to the
requirements of section 38-65(2), e.g. payments must commence by age seventy
and one-half (70½). All share account monies not paid out shall continue to be
adjusted to reflect earnings and losses accordingly as provided for in section 38-
78(3)(b). (emphasis added)
Sec. 38-78(3)(a)(2) of the Palm Beach Gardens Code provides a definition for “valuation date”
by providing as follows:
Effective October 1, 2000 (only as to funds received on or after the effective date
of the ordinance adopting this section), the allocation method in subsection 3.a.1.
above shall be discontinued and premium tax monies received on or after that date
after the deduction of the two percent total compensation which commences in
FY 2004, shall be allocated as provided for in this paragraph 2. All monies
received from Chapter 175, Florida Statutes, premium tax rebates, including any
supplemental payments, shall be allocated to individual member share accounts at
the end of each fiscal year on September 30 (a "valuation date") in an amount
determined as follows…(emphasis added)
In keeping with the language in the ordinance and the feasibility involved in
calculating net Share Account balances, having payments made available for payment 30
days subsequent to the first fiscal year end after separation from service appears to be the
most reasonable interpretation of the ordinance. Notwithstanding, it may prove beneficial
to request the City of Palm Beach Gardens’ legislature to amend the pension ordinance to
Board of Trustees
City of Palm Beach Gardens Firefighters’ Pension Fund
July 2, 2014
Page 4
provide greater flexibility to the Board and Fund members in paying out the Ch. 175
Share Accounts. After discussion by the Board with input from its vendors (i.e. actuary,
financial consultant, administrator), as per our standard protocol, we would draft a
proposed amendment and submit to the City Attorney for possible enactment. Further, we
would also recommend formalizing a policy and procedure with respect to the Share
Accounts governing its administration going forward. This matter should also be placed
on a future agenda as directed by the Chair for discussion by the Board.
Please feel free to contact me directly should you have any questions or
comments. I look forward to discussing this matter with you in the near future.
Yours truly,
PEDRO A. HERRERA
PAH/jd