HomeMy WebLinkAbout2022 ContractZehmann
May 19, 2022
The Honorable Mayor and Members of the City Council
City of Sebastian
1225 Main Street
Sebastian, FL 32958
Enclosed is the engagement letter for the City of Sebastian for the year ended September 30, 2022.
Government Auditing Standards (as amended) require that we communicate, during the planning stage of an
audit, certain Information to the Governing Body. This information includes the auditors'responsibilities In a
financial statement audit, including our responsibilities for testing and reporting on compliance with laws and
regulations and internal control over financial reporting. The engagement letter Includes the items which
must be communicated to the Governing Body.
Therefore, please make copies of the attached engagement letter and forward the copies to Governing Body.
Please sign and return the enclosed copy of the attached engagement letter to us at your earliest
convenience.
Sincerely,
-44114
Enclosures
Zehmann
May 19, 2022
The Honorable Mayor and Members of the City Council
City of Sebastian
1225 Main Street
Sebastian, FL 32958
We are pleased to confirm our understanding of the services we are to provide the City of Sebastian (the
"Cityl for the year ended September 30, 2022
Audit Scone and Oblectives
We will audit the financial statements of the governmental activities, the business -type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information, Including the disclosures, which collectively comprise the basic financial statements of the City
as of and for the year ended September 30, 2022. Accounting standards generally accepted in the United
States of America provide for certain required supplementary information (RSI), such as management's
discussion and analysis (MD&A), to supplement the City's basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context As part of our engagement, we will apply
certain limited procedures to the City's RSI in accordance with auditing standards generally accepted in the
United States of America ("GAAS"). These limited procedures will consist of inquiries of management
regarding the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained
during our audit of the basic financial statements. We will not express an opinion nor provide any assurance
on the information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance. The following RSI is required by generally accepted accounting principles
and will be subjected to certain limited procedures, but will not be audited:
Management's Discussion and Analysis
Schedule Required by GASB 67 and 68 - Pension Plan
Schedule of Funding Progress and Employer Contributions - OPEB Plan
We have also been engaged to report on supplementary information other than RSI, such as combining and
individual fund financial statements, that accompanies the City's basic financial statements. We will subject
the following supplementary information to the auditing procedures applied in ouraudit of the basicfinancial
statements and certain additional procedures, Including comparing and reconciling such Information directly
to the underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves and other additional procedures, in accordance with auditing standards generally
accepted in the United States of America and will provide an opinion on it in relation to the financial
statements as a whole.
The Honorable Mayor and Members of the City Council
City of Sebastian
May 19, 2022
Page 2
The following other information accompanying the basic financial statements will not be subjected to the
auditing procedures applied in our audit of the financial statements, and for which our auditor's report will
disclaim an opinion:
Combining and individual fund financial statements
The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report
that includes our opinions as to whether the City's financial statements are fairly presented, in all material
respects, in conformity with accounting principles generally accepted in the United States of America and to
report on thefairness of the supplementary information referred to In the second paragraph when considered
in relation to the basicfinancial statements taken as a whole. Reasonable assurance is a high level of assurance
but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with
GAAS will always detect a material misstatement when it exists. Misstatements, includingomissions, can arise
from fraud or error and are considered material if there is a substantial likelihood that, individually or in the
aggregate, they would influence the judgment of a reasonable user made based on the financial statements.
The objective also includes reporting on -
• Internal control related to the financial statements and compliance with laws, regulations, and the
provisions of contracts or grant agreements, noncompliance with which could have a material effect
on the financial statements in accordance with Government Auditing Standards.
• Internal control related to major programs and an opinion (or disclaimer of opinion) on compliance
with laws, regulations, and the provisions of contracts or grant agreements that could have a direct
and material effect on each major program in accordance with the Single Audit Act Amendments of
1996 and Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for FederalAwards (Uniform Guidance).
The reports on internal control and compliance will each include a paragraph that states that the purpose of
the report is solely to describe (1) the scope of testing of internal control over financial reporting and
compliance and the result of that testing and not to provide an opinion on the effectiveness of internal control
over financial reporting or on compliance, (2) the scope of testing internal control over compliance for major
programs and major program compliance and the result of that testing and to provide an opinion on
compliance but not to provide an opinion on the effectiveness of internal control over compliance, and (3) that
the report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering internal control over financial reporting and compliance and with the Uniform Guidance in
considering internal control over compliance and major program compliance. The paragraph will also state
that the report is not suitable for any other purpose. Noncompliance with the compliance requirements
applicable to a major program is considered material if there is a substantial likelihood that, individually or in
the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about
the entity's compliance with the requirements applicable to each major program taken as a whole.
The concept of materiality is inherent in the work of an independent auditor. An independent auditor places
greater emphasis on those items that have, on a relative basis, more importance to the financial statements
and greater possibilities of material error than with those items of lesser importance or those in which the
possibility of material error is remote.
The Honorable Mayor and Members of the City Council
City of Sebastian
May 19, 2022
Page 3
Auditors' Responsibilities for the Audit of the Financial Statements
Our audit of the City's financial statements does not relieve management or those charged with governance
of their responsibilities. We will conduct our audit In accordance with auditing standards generally accepted
in the United States of America; the standards for financial audits contained in GovernmentAuditingStandards,
issued by the Comptroller General of the United States; the Single Audit Act Amendments of 1996; and the
provisions of the Uniform Guidance, and will include tests of accounting records, a determination of major
program(s) in accordance with the Uniform Guidance, and other procedures we consider necessary to enable
us to express such opinions and to render the required reports. As part of an audit in accordance with GAAS,
we exercise professional judgment and maintain professional skepticism throughout the audit.
We will evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management. We will also evaluate the overall presentation of the financial
statements, including the disclosures, and determine whether the financial statements represent the
underlying transactions and events in a manner that achieves fair presentation. We will plan and perform the
audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of
material misstatement, whether from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of
assets, or (4)violations of laws or governmental regulations that are attributable to the City or to acts by
management or employees acting on behalf of the City. Because the determination of abuse is subjective,
Government Auditing Standards do not expect auditors to provide reasonable assurance of detecting abuse.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and
because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some
material misstatements may exist and not be detected by us, even though the audit is properly planned and
performed in accordance with GAAS and Government Auditing Standards. In addition, an audit is not designed
to detect Immaterial misstatements or violations of laws or governmental regulations that do not have a
direct and material effect on the financial statements or major programs. However, we will inform the
appropriate level of management of any material errors, any fraudulent financial reporting, or
misappropriation of assets that comes to our attention. We will also inform the appropriate level of
management of any violations of laws or governmental regulations that come to our attention, unless clearly
inconsequential, and of any material abuse that comes to our attention. We will include such matters in the
reports required for a Single Audit. Our responsibility as auditors is limited to the period covered by our audit
and does not extend to any later periods for which we are not engaged as auditors.
We have advised the City of the limitations of our audit regarding the detection of fraud and the possible
effect on the financial statements (Including misappropriation of cash or other assets) not withstanding our
obligations per the Single Audit Amendments of 1996 and the Uniform Guidance. We can, as a separate
engagement, perform extended procedures specifically designed to potentially detect defalcations.
Management acknowledges that the City has not engaged us to do so and does not wish us to do so at this
time.
The Honorable Mayor and Members of the City Council
City of Sebastian
May 19, 2022
Page 4
Internal Control Over Financial Renortine and Compliance
We will obtain an understanding of the City and its business environment, including internal control relevant
to the audit, sufficient to assess the risks of material misstatement of the financial statements, whether due
to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may Involve collusion,
forgery, intentional omissions, misrepresentation, or the override of internal control. Tests of controls may
be performed to test the effectiveness of certain controls that we consider relevant to preventing and
detecting errors and fraud that are material to the financial statements and to preventing and detecting
misstatements resulting from illegal acts and other noncompliance matters that have a direct and material
effect on the financial statements. Our tests, if performed, will be less in scope than would be necessary to
render an opinion on internal control and, accordingly, no opinion will be expressed in our report on internal
control issued pursuant to Government Auditing Standards.
As required by the Uniform Guidance, we will perform tests of controls over compliance to evaluate the
effectiveness of the design and operation of controls that we consider relevant to preventing or detecting
material noncompliance with compliance requirements applicable to each major federal award program.
However, our tests will be less in scope than would be necessary to render an opinion on those controls and,
accordingly, no opinion will be expressed in our report on internal control issued pursuant to the Uniform
Guidance.
An audit is not designed to provide assurance on internal control, or to Identify significant deficiencies or
material weaknesses in internal control, or to express an opinion on the effectiveness of internal control over
financial reporting. Accordingly, we will express no such opinion. However, during the audit, we will
communicate to the appropriate level of management and those charged with governance internal control
related matters that are required to be communicated under professional standards, Government Auditing
Standards and the Uniform Guidance. These matters refer to significant matters related to the financial
statement audit that are, in our professional judgment, relevant to the responsibilities of those charged with
governance in overseeing the City's financial reporting process. When applicable, we are responsible for
communicating certain matters required by laws or regulations, or by additional requirements that may be
applicable to this engagement. Auditing standards generally accepted in the United States of America do not
require the independent auditor to design or perform procedures for the purpose of identifying other matters
to communicate with those charged with governance. Management is responsible for assessing the
implications of and correcting any Internal control -related matters brought to the City's attention by us.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories (if applicable), and directconfirmation
of receivables and certain other assets and liabilities by correspondence with selected Individuals, creditors,
and financial institutions. We may request written representations from the City's attorneys as part of the
engagement, and they may bill the City for responding to this inquiry.
Coma] lance with Laws and Regulations and the Provisions of Grant Aereements
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the City's compliance with provisions of applicable laws and
regulations and the provisions of contracts and agreements, Including grant agreements. However, the
objective of those procedures will not be to provide an opinion on overall compliance and we will not express
such an opinion in our report on compliance issued pursuant to Government Auditing Standards.
The Honorable Mayor and Members of the City Council
City of Sebastian
May 19, 2022
Page 5
The Uniform Guidance requires that we also plan and perform the audit to obtain reasonable assurance about
whether the auditee has complied with applicable laws and regulations and the provisions of contracts and
grant agreements applicable to major programs. Our procedures will consist of tests of transactions and other
applicable procedures described in the OMB Compliance Supplementforthe types of compliance requirements
that could have a direct and material effect on each of the City's major programs. The purpose of those
procedures will be to express an opinion on the City's compliance with requirements applicable to each of its
major programs in our report on compliance issued pursuant to the Uniform Guidance.
Other Services
Assistance provided by our Firm in the preparation of a reasonably adjusted trial balance is considered an
additional billable service.
Responsibilities of Management for the Financial Statements and Compliance
Our audit will be conducted on the basis that you acknowledge and understand your sole and complete
responsibility for designing, implementing, and maintaining effective internal controls relevant to the
preparation and fair presentation of financial statements that are free from material misstatement, whether
due to fraud or error, and internal control over compliance, and for ongoing monitoring activities, to help
ensure that appropriate goals and objectives are met and that there is reasonable assurance that government
programs are administered in compliance with compliance requirements. Management is also responsible for
the selection and application of accounting principles; for the preparation and fair presentation of the
financial statements in conformitywith an acceptable financial reportingframework, and for compliance with
applicable laws and regulations and the provisions of contracts and grant agreements. Management is
responsible for determining, and has determined, that the applicable and appropriate financial reporting
framework to be used in the preparation of the City's financial statements is accounting principles generally
accepted in the United States of America (GAAP).
Management is also solely and completely responsible for making drafts of financial statements, all financial
records and related information available to us, including a reasonably adjusted trial balance, and for the
accuracy and completeness of that information (including information from outside of the general and
subsidiary ledgers). Management is also responsible for providing us with (1) access to all information of
which management is aware that is relevant to the preparation and fair presentation of the financial
statements, such as records, documentation, identification of all related parties and all related -party
relationships and transactions, and other matters, (2) additional information that we may request from
management for the purpose of the audit, and (3) unrestricted access to persons within the City from whom
we determine it necessary to obtain audit evidence. At the conclusion of our audit, we will also require certain
written representations from management about the financial statements and related matters.
For the purposes of this letter, related parties mean members of the governing body; board members;
administrative officials; immediate families of administrative officials, board members, and members of the
governing body; and any companies affiliated with or owned by such individuals.
Management's responsibilities also include identifying significant vendor relationships in which the vendor
has the responsibility for program compliance and for the accuracy and completeness of that information.
Management's responsibilities include adjusting the financial statements to correct material misstatements
and for confirming to us in the written representation letter that the effects of any uncorrected
misstatements aggregated by usduringthe current engagement and pertainingtothe latest period presented
are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.
The Honorable Mayor and Members of the City Council
City of Sebastian
May 19, 2022
Page b
We will advise management (and the Governing Body, as necessary) about appropriate accounting principles
and their application and may assist in the preparation of the City's financial statements, but the ultimate
responsibility for the financial statements remains with management with oversight by those charged with
governance. As partof our engagement, we may propose standard, adjusting, or correcting journal entries to
the City's financial statements. Management is responsible for reviewing the entries, understanding the
nature of any proposed entries and the impact they have on the financial statements, and the implications of
such entries on the City's internal control over financial reporting. Further, the City is responsible for
designating a qualified management -level individual to be responsible and accountable for overseeing these
nonattest services.
Management is responsible for the design and implementation of programs and controls to prevent and
detect fraud, and for informing us about all known or suspected fraud affecting the government involving
(1) management, (2) employees who have significant roles in internal control, and (3) others where the fraud
could have a material effect on the financial statements. Management's responsibilities include informing us
of Its knowledge of any allegations of fraud, suspected fraud or illegal acts affecting the government received
in communications from employees, former employees, grantors, regulators, or others. In addition,
management is responsible for identifying and ensuring that the City complies with applicable laws,
regulations, contracts, agreements, and grants. Additionally, as required by the Uniform Guidance, it is
management's responsibility tofollow upandtakecorrective action on reported auditfindings and to prepare
a summary schedule of prior audit findings and a corrective action plan. The summary schedule of prior audit
findings should be available for our review at the conclusion of fieldwork.
Management is responsible for designing, implementing, and maintaining effective internal control over
federal awards that provides reasonable assurance that the City Is managing federal awards in compliance
with federal statutes,regulations, and the terms and conditions of the federal awards, and for identifying and
ensuring that the City complies with federal laws, statutes, regulations, rules, provisions of contracts or grant
agreements, and the terms and conditions of federal award programs, and implementing systems designed to
achieve compliance with applicable federal statutes, regulations, and the terms and conditions of federal
award programs.
Management is responsible for preparation of the schedule of expenditures of federal awards in conformity
with the Uniform Guidance. Management agrees to include our report on the schedule of expenditures of
federal awards in any document thatcontains and indicates that we reported on the schedule of expenditures
of federal awards. Management also agreesto include the audited financial statements with any presentation
of the schedule of expenditures of federal awards that includes our report thereon OR make the audited
financial statements readily available to intended users of the schedule of expenditures of federal awards no
later than the date the schedule of expenditures of federal awards is issued with our report thereon.
Management's responsibilities include acknowledging to us in the representation letter that (a) management
is responsible for presentation of the schedule of expenditures of federal awards in accordance with the
Uniform Guidance; (b) that management believes the schedule of expenditures of federal awards, including
its form and content, is fairly presented in accordance with the Uniform Guidance; (c) that the methods of
measurement or presentation have not changed from those used In the prior period (or, if they have changed,
the reasons for such changes); and (d) management has disclosed to us any significant assumptions or
interpretations underlying the measurement or presentation of the schedule of expenditures of federal
awards.
The Honorable Mayor and Members of the City Council
City of Sebastian
May 19, 2022
Page 7
Management is also responsible for the preparation of the other supplementary information, which we have
been engaged to report on, that is presented fairly in relation to the basic financial statements. Management
agrees to include our report on the supplementary information in any document that contains and indicates
that we have reported on the supplementary information. Management also agrees to include the audited
financial statements with any presentation of the supplementary information that includes our report
thereon. Management's responsibilities include acknowledging to us in the representation letter that (a)
management is responsible for presentation of the supplementary information in accordance with GAAP; (b)
that management believes the supplementary information, including its form and content is fairly presented
in accordance with GAAP; (c) that the methods of measurement or presentation have not changed from those
used in the prior period (or, if they have changed, the reasons for such changes); and (d) management has
disclosed to us any significant assumptions or interpretations underlying the measurement or presentation
of the supplementary information.
Management is responsible for establishing and maintaining a process for tracking the status of audit findings
and recommendations. Management is also responsible for identifying for us previous financial audits,
attestation engagements, performance audits, or other studies related to the objectives discussed in the
Audit Objectives section of this letter. This responsibility includes relaying to us corrective actions taken to
address significant findings and recommendations resulting from those audits, attestation engagements,
performance audits, or studies. Management is also responsible for providing management's views on our
current findings, conclusions, and recommendations, as well as management's planned corrective actions, for
the report, and for the timing and format for providing that information.
The City is required to disclose the date through which subsequent events have been evaluated, which
ordinarily is the date the financial statements were available to be issued. The City will not date the
subsequent event note earlier than the date of management's written representation letter and the date of
our independent auditors'report.
During the course of our engagement, we will request information and explanations from management
regarding the City's operations, internal control over financial reporting, various matters concerning fraud
risk, future plans, specific transactions, and accounting systems and procedures. At the conclusion of our
engagementwe will require,as a precondition to the issuance ofourreport, that managementprovide certain
representations in a written management representation letter.
Management is responsible for the basic financial statements, schedule of expenditures of federal awards,
and all accompanying information as well as all representations contained therein. Management is also
responsible for identifying government award programs and understanding and complying with the
compliance requirements, and for preparation of the schedule of expenditures of federal awards in
accordance with the requirements of the Uniform Guidance. As part of the audit, we will assist with
preparation of the City's financial statements, schedule of expenditures of federal awards, and related notes,
as well as the data collection form. Management will be required to acknowledge in the management
representation letter our assistance with preparation of the financial statements, the schedule of
expenditures of federal awards, and the data collection form, and that management has reviewed and
approved the financial statements, schedule of expenditures of federal awards, and related notes prior to
their issuance and have accepted responsibility for them. Management agrees to assume all management
responsibilities for any nonaudit services we provide; oversee the services by designating an individual,
preferably from senior management, who possesses suitable skill, knowledge, and/or experience; evaluate
the adequacy and results of these or other nonattest services performed by our Firm; and understand and
accept responsibility for the results of such services.
The Honorable Mayor and Members of the City Council
City of Sebastian
May 19, 2022
Page 8
We are not hosts for any City information. Management is expected to retain all financial and non -financial
information that management uploads to a portal (document sharing site), and management is responsible for
downloading and retaining in a timely manner anything we upload. Portals are meant as a method only of
transferringand sharing data, and are not intended for the storage of City information, which may be deleted
at any time. Management is expected to maintain control over the City's accounting systems to include the
licensing of applications and the hosting of said applications and data. We do not provide electronic security
or back-up services for any of the City's data or records. Giving us access to the City s accounting system does
not make us hosts of information contained within.
We, in oursole professional judgment, reserve the rightto refuse to perform any procedure ortake any action
that could be construed as assuming management functions or responsibilities.
Fees
The not to exceed fee for the audit of the financial statements will be charged at rates commensurate with
the value of our professional services rendered and are not expected to exceed $46,200 ($41,400 for the
financial audit and $4,800 for the single audit). If the City has more than two major programs tested in the
single audit, a fee of $1,500 will be charged for each additional program.
Our invoices for these base fees are due and payable as follows:
Payment schedule:
Payment 1 $ 20,790 12/01/2022
Payment2 20,790 01/31/2023
Payment 4,620 Upon report issuance
Total $ 46,20p
This fee is based on the assumption that unexpected circumstances will not be encountered during the audit.
This fee is based on anticipated cooperation from the City's personnel, continued readiness and proactive
assistance on their part in providing us with complete and accurate information (whether financial or
nonfinancial in nature) considered necessary by us to form an appropriate opinion, and the assumption that
unexpected circumstances will not be encountered during the audit Such circumstances include, but are not
necessarily limited to significant addition or deletion of funds, component units or related entities and first-
time application of significant new professional accounting or auditing pronouncements. In addition, the fee
above assumes management will analyze and maintain appropriate support for significant valuation
assertions embodied in the financial statements including the valuation of investment securities, the actuarial
methods and assumptions used to calculate the net pension and other postemployment benefits liabilities,
impairment of capital assets including those held for sale, the valuation of inventories and land held for resale,
allowances for uncollectible receivables, and the estimate for incurred -but -not -reported self Insurance
claims. If significant additional time is necessary, we will discuss the related circumstances with management
and arrive at a new fee estimate, which may or may not occur before we incur the additional time. In these
circumstances, we may also issue a change order form (an attached example is provided.)
Fneaaement Administration and Other
Management shall discuss any independence matters with Rehmann that, in management's judgment, could
bear upon Rehmann's independence.
The Honorable Mayor and Members of the City Council
City of Sebastian
May 19, 2022
Page 9
By applying a digital signature to this engagement letter or other document via DocuSign or a similar third -
party digital signature service, management acknowledges the City's consent to receive and execute such
documents via this method. Management further acknowledges that a digital signature applied via DocuSign
or a similar third -party digital signature service has the same legal commitment as a traditional physical
signature.
At the conclusion of the engagement, we will complete the appropriate sections of the Data Collection Form
that summarizes our audit findings. It is management's responsibility to submit the reporting package
(including financial statements, schedule of expenditures of federal awards, summary schedule of prior audit
findings, auditors' reports, and a corrective action plan) along with the Data Collection Form to the federal
audit clearinghouse. We will coordinate with management the electronic submission and certification. If
applicable, we will provide copies of our reports for the City to include with the reporting package the City
will submit to pass -through entities. The Data Collection Form and the reporting package must be submitted
within the earlier of 30 days after receipt of the auditors' reports or nine months after the end of the audit
period, unless a longer period is agreed to in advance by the cognizant or oversight agency for audits.
The audit documentation for this engagement is the property of Rehmann and constitutes confidential
information. However, pursuant to authority given by law or regulation, we may be requested to make certain
audit documentation available to a cognizant or grantor agency for audit or its designee, a federal agency
providing direct or indirect funding, or the US. Government Accountability Office for purposes of a quality
review of the audit, to resolve audit findings, or to carry out oversight responsibilities. We will notify
management of any such request. If requested, access to such audit documentation will be provided under
the supervision of Rehmann personnel. Furthermore, upon request, we may provide copies of selected audit
documentation to the aforementioned parties. These parties may intend, or decide, to distribute the copies
or information contained therein to others, including other governmental agencies.
The audit documentation for this engagement will be retained for a minimum of five years after the report
release date or for any additional period requested by the cognizant agency, oversight agency for audit, or
pass -through entity. If we are aware that a federal awarding agency, pass -through entity, or auditee is
contesting an audit finding, we will contact the parties contesting the audit finding for guidance prior to
destroying the audit documentation.
Our audit engagement and our responsibility as auditors ends on delivery of our audit report to the Governing
Body at the Regular Board meeting. Any follow-up services that might be required will be part of a separate,
new engagement. The terms and conditions of that new engagement will be governed by a new, specific
engagement letter for that service.
Government Auditing Standards require that we provide the City with a copy of our most recent external peer
review report and any subsequent peer review reports received during the period of the contract. Our 2020
peer review report accompanies this letter.
This engagement letter, including the attached Rehmann Audit Engagement Letter Terms and Conditions
which are incorporated herein by reference as if set forth within the body of this engagement letter in their
entirety, reflect the entire understanding between us relating to the audit services covered by this
agreement. This agreement may not be amended or varied except by a written document signed by both
parties. It replaces and supersedes any previous proposals, correspondence, and understandings, whether
written or oral. The agreements of the City and Rehmann contained in this document shall survive the
completion ortermination of this engagement. If any term hereof is found unenforceable or invalid, this shall
not affect the other terms hereof, all of which shall continue in effect as if the stricken term had not been
included.
The Honorable Mayor and Members of the City Council
CityofSebastian
May 19,2022
Page 10
Recorton
We will issue a written report upon completion of our audit of the City's financial statements. We cannot
provide assurance that unmodified opinions will be expressed. Circumstances may arise in which our report
may differ from its expected form and content based on the results of our audit Depending on the nature of
these circumstances, It may be necessary for us to modify our opinions, add a separate section, or add
emphasis -of -matter or other -matter paragraphs to our audit report, or if necessary, withdraw from this
engagement If our opinions on the financial statements or the Single Audit compliance opinion are other than
unmodified, we will discuss the reasons with management in advance.lf circumstances occur and come to our
attention related to the condition of the City's records, the availability of sufficient, appropriate audit
evidence, or the existence of a significant risk of material misstatement of the financial statements caused by
error, fraudulent financial reporting. or misappropriation of assets, or we become aware that Information
provided by the City is incorrect, Incomplete, inconsistent, misleading, contains material omissions, or is
otherwise unsatisfactory which inourprofessionaljudgment prevent us from completing the audit Or forming
an opinion on the financial statements, we retain the right to take any course of action permitted by
professional standards, including declining to express an opinion or issue a report, or withdrawing from the
engagement
We appreciate the opportunity to b of service to the City and believe the arrangements outlined above and
in the attached Rehmann Audit Engagement Letter Terms and Conditions accurately summarize the
significant terms of our engagement If you have any questions, please let us know. If you agree with the terms
of our engagement please sign the enclosed copy of this document and return It to us.
4444:4-1,1- LLC
P. Ross Cotherman, CPA
Principal
Executive responsible for supervising the
engagement and signing our report
ACKNOWLEDGED AND ACCEPTED:
This letter correctly sets forth the understanding of CityofSebastian.
�i
,��d(ficerSigna ure
Paul E. Carlisle
Printed Name
City Manager
Title
June 9, 2022
Date
The Honorable Mayor and Members of the City Council
City of Sebastian
May 19, 2022
Page 10
Reoortine
We will issue a written report upon completion of our audit of the City's financial statements. We cannot
provide assurance that unmodified opinions will be expressed. Circumstances may arise in which our report
may differ from its expected form and content based on the results of our audit. Depending on the nature of
these circumstances, it may be necessary for us to modify our opinions, add a separate section, or add
emphasis -of -matter or other -matter paragraphs to our audit report, or if necessary, withdraw from this
engagement. If ouropinions on the financial statements orthe Single Audit compliance opinion are otherthan
unmodified, we will discuss the reasons with management in advance. If circumstances occur and come to our
attention related to the condition of the City's records, the availability of sufficient, appropriate audit
evidence, or the existence of a significant risk of material misstatement of the financial statements caused by
error, fraudulent financial reporting, or misappropriation of assets, or we become aware that information
provided by the City Is incorrect, Incomplete, inconsistent, misleading, contains material omissions, or is
otherwise unsatisfactorywhich in our professional judgment prevent us from completingthe audit orforming
an opinion on the financial statements, we retain the right to take any course of action permitted by
professional standards, including declining to express. an opinion or issue a report, or withdrawing from the
engagement
We appreciate the opportunity to be of service to the City and believe the arrangements outlined above and
in the attached Rebmann Audit Engagement Letter Terms and Conditions accurately summarize the
significantterms of ourengagement. if you have anyquestions, please let us know. If you agree with the terms
of our engagement, please sign the enclosed copy of this document and return it to us.
P. Ross Cotherman, CPA
Principal
Executive responsible for supervisingthe
engagement and signing our report
ACKNOWLEDGED AND ACCEPTED:
This letter correctly sets forth the understanding of City of Sebastian.
Officer Signature
Printed Name
Title
Date
Rehmann Audit Engagement Letter Terms and Conditions
ADDITIONAL SERVICES - The City may request that we perform
additional services not addressed in this engagement letter if this occurs,
we will communicate with management regarding the scope of the
additional services and the estimated separate tees. We also may issue a
change order tarn (an attached example is provided), or a separate
engagement letter covering the additional services. In the absence of any
other written communication from us documenting won additional
services, car attest services will continue to he govemed by the terns of
this engagement letter.
CODE OF CONDUCT - Management Is responsible for identifying any
violationsbyemployeesof the City's code ofconduct
CHANGES IN STANDARDS, LAWS AND REGULATIONS - We perform
services for the City based an present professional standards, laws and
regulations. While we may on occasion be able to communicate with
management with respect tochames in professional standards.lawsand
regulations, as a general Whoople we cannot undertake with clients to
advise then of every change that may mou, The City can always obtain
reassurance in Nit regard by contacting us for an updated review of the
Ciwssituatloa
MANAGEMENTS REPRESENTATIONS - The procedures we will
perform incur engagement and the conclusionswe reach as a basis forour
report will he heavily influenced by the written and oral representations
that we receive from managemem. Accordingly, false, misleading.
incomplete, inconsistent, or om2ted representations could cause us to
expend unnecessary efforts or could cause material enter or a fraud to go
undetected by cur procedures, In view of the foregoing the City agrees
Mat we shall not be responsible for any material misstatements In the
City's financial statements that we may Nil to detest as a result of false,
Inaccurate. incomplete. Inconsistent ar misleading representations that
are made to us by management In addition. the City further agrees to
Indemnify and hold as harmless far any liability and all reasonable costs,
including legal tees, that we may Incur as a result of the services
performed under this engagement in the event there are false or
misleading representation; made to us by any member of the CitVs
management.
CLIENT ASSISTANCE - We understand that the ChYs employees will
Prepare all cash, accounts receivable, and other confirmations we request
and will locate and refile any doaments selected by us for testing In
add itlon, man agement wl I I provide us with espies of al I minutes and other
tlocumends that we believe may have a bearing on cur evaluation of the
City's fmancNI Mrs.
WORK SPACE - The City shall Provide reasonable work space for
Rehmann personnel at audit work sites ce well as occasional clerical
supportservicas.
TIMELY DECISIONS AND APPROVALS - The City uncerstands that
Relation's Performance is dependent on the City's timely and effective
satisfaction of its own activities and responsibilities in connection with
this engagement, as well as timely decisions and approvals by City
personnel
ACCURACY AND COMPLETENESS OF INFORMATION - Management
agrees to ensure that all Information provided to us is accurate, complete,
and consistent in all material respects, contains no material omissions and
Is updated on a prompt and continuous basis. In addition, management will
also be responelble for obtaining all third -party consents, if any, requlred
to enable Rehmann to access and use any third -party products necessary
loourperformance.
EMAIL - The City acknowledges that (a) Rehmann, the City and others. if
any, participating In this engagement may correspond or convey
documentation via Internet e-mail unless the City expressly requests
otherwise, (b) no party has control over the performance, reliability,
availability, or security of Internet e-mail, and (d Rehmann shall not be
liable for any loss,damage, expense, harm or inconvenience resulting from
the lass, delay, Interception, corruption, or alteration of any Internet e-
mail due to any reason beyond Rehmann's reasonable control.
OFFERS OF EMPLOYMENT - Professional standards require us to be
Independent with respect to the City in the performance of our services.
Any discussions that management has with Personnel of our Firm
regarding employment could pose a threat to our Independence.
Therefore, we request that management Inform us prior to any such
discusslons so that we can implement appropriate safeguards to maintain
ouriMependence.
Neither parry shall, during the term of this engagement letter and for one
(1) year after its termination. solicit for hire as an employee, consultant or
otherwise any of the other pays personnel without such other parN's
expreas written consent If the City desires to offer employment to a
Rebmann associate and the associate is hired in any capacity by the City.
a market-0riven nmpmsalion placement fee may apply.
ADDITTONALFEESANDBILLING POLICIES- It mum beunderstood that
the nature of our engagement requires us to exercise our Independent
Professional judgment with respect to various auditing, accounting and
related Issues. In reaching our condusions we must retain the right to
judge the nature and scope of the work required in order to conform to
prof halo ed standards, as well m the work we deem necessary to enable
us to reach the conclusions and form the opinions required of us. If our
judgment as to the scope of the work required causes us to reassess car
estimate of fees for this engagement. we will w advise the City. We
reserve the right to refrain from performing additional work Not thereby
winning add itional time charges) unless and until the City has confirmed
its understanding at, and agreement to.arry addltional estimated charges.
Our fee estimate is based upon car discussioro with management, in
which management has disclosed no unusual problems or issues which
would require us to coMud an audit of unusual scope or otherwise
expend time and effort in excess of that normally anticipated In an
engagement of this type. The estimate also assumes that we will have the
full cooperation of City Mounpei, as required, and that there is a
r wmblecontinuityofCitymmnnelNmiliarwithlhemat mtowhich
our engagement relates In addition, our fee is based an the experience
level of nor personnel, at their respective standard hourly rates,
performing certain audit procedures at contain ❑ minances. If we are
caused to varyfromthat planning formula, additionalfeeswill need tote
charged to allow for more experienced personnel performing Me work,
reallocation of ou rcl lent priority, overtime, etc Further, management will
Provide us with the schedules and records that we request NiNch
ordinarily are detailed In a request list in advance of our fieldwork) and
that all such schedules and records will be provided to us timely in
accordance with the scheduled fieldwork dates, to be mutually agreed
Upon. If the requested schedules and records are not Provided to us In
accordance with the scheduled caters and we are unable to continue our
work, we will attempt to resume our work as soon as the schedules and
records are provided to as and our professionals assigned to the
engagement again become available.
As a result of well -publicized events, global economic convergence, and
the continued evolution of the accounting profession, accounting and
auditing standard sellers and regulators are continually evaluating the
need for changes that may affect the City. Such changes may result In
changes in financial re,ormMandexpanding the nature, limingand scope
of activities we are required to Perform to providetheservlces discussed
in this letter. Proposed changes and shortened deadllnescould result Ina
reduction of the level of assistance and preparedness the City is able to
provide. We expect that our clients may continue to look to us to assist
them with these changesTo the extent anchorages require us to increase
the time required to provide the services described in this letter or to
complete new tasks required by such changes, we reserve the right to
adjust our fees appropriately. We will endeavor to advise the City of
anticipated changes to our fees on a timely basis.
In accordance with our Firm policies, work may be suspended If the City's
account becomes 30 days or more overdue and will not be resumed until
the account is paid In full or we have a definitive payment agreement
approved by our Firm administrator In Saginaw, Michigan. It we elect to
terminate our services far nonpayment, our engagement will be deemed
to have been completed even If we have not Issued our report. The City
will be obligated to compensate us for all time expended and to reimburse
us for all out of -packet expenditures through the date of termination.
Rehmann Audit Engagement Letter Terms and Conditions
Our terms and conditions Impose a late charge of 15%per mond,which
Is an annual percentage rate of IB%. Balances not paid within 30 days of
the receipt of invoice are past due anda late charge of 1.5%will be applied
to the entire past due amount.
Rebmann charges a 3%convenience fee on credit card payments.
CLAIMS - Because there are inherent difficulties in recalling or preserving
information as the period after an engagement Increases, the City agrees
that, notwithstanding the statute of limitations of any particular State or
US. Territory, any claim based on the audit engagement must be filed
within 12 months after performance of our service, unless management
has previously provided us with a written notice of a specific dated In our
services that forms the basis of the claim.
TERMINATION OF SERVICES - We reserve the right to suspend or
terminate services far reasonable cause such asfailurem payout invoices
n a timely basis orfailure to provide adequate information in response to
our inquiries necessary for successful performance of our audit seMces.
Our engagement will be deemed to be completed upon written
notification of termination, even if we have not completed the audit and
issued consigned auditors' mpo rL The City is obligated to compensate us
for the time expanded to that Point and to reimburse us for all out-of-
pocketexpenditures through the date oftermination.
We acknowledge the City's right to terminate ou r seryices at anytime, and
the City acknowledges our night to withdraw at any time, including, but
not limited to, for example, instances where, in our judgment h)the
conditions in the fast paragraph of the Audit Objectives section of this
letter exist W our independence has been impaired, (c)we can no longer
rely on the integrity of management, (d)managemere (or the Audit
Committee, if applicable) fails to reasonably support our efforts to
perform the engagement in accordance with what we Where is necessary,
to comply with professional standards, or (a) a lack of professionalism
exhibited by management appears to demonstrate a lack of respect for
our personnel such as that evidenced in inappropriate or threatening
li mguage/emails, subject in either case to oureight to paymentforcharges
incurred to the date of termination or our resignation.
In the event that we determine to resign, and the City seeks damages
allegedly resulting from such resignation, our maximum liability to the
City In the event we are held liable because of such resignation shall be
limited to the fees actually paid to us for current year audit work
Performed up author date of resignation.
INITIAL ISSUANCE OF OUR AUDIT REPORT ON FINANCIAL
STATEMENTS- lithe City intends to publish or otherwise reproduce our
audit report an the financial statements and/or make reference to our
Firm name, such as far inclusion in an annual report (such as, for example,
n a Comprehensive Annual Financial Report), prospectus. official
statement, or similar disclosure document, including incorporation by
reference thereto, the City agrees to provide us with a copy of the final
reproduced document for our owlewand approval before it isdistributed,
rculated or submitted. Additional fees for Issuance or inclusion of our
audit report and/or any other reference to our Firm In such other
document, will be based an our standard hourly rates.
With regard to electronic dissemination of audited financial statements.
IPeluding financial statements published electronically on the City's
Internet Web site, the City understands that electronic sites are a means
to distribute information and, therefore, we are not required to read the
information contained in these sites or to consider the comstency of
other Information in the electronic site with the original document.
SUBSEQUENT REPRODUCTION OF OUR AUDIT REPORT ON
FINANCIAL STATEMENTS - If the City decides to include, publish or
otherwise reproduce our audit report on the financial statements at a date
subsequent to our original report Issuance, such as for inclusion in a
Preliminaryar Official Statement an exempt offering in connection with
salsof madeor notes, or other securities, or in a similar exempt offering
archer disciosuredocument such as a prospectus, official statemeni
(here rafter referred to as the'document'). our Firm is presumed not to
be associated with such document, and we have no obligation to perform
any procedures with respect to such document In these circumstances,
the City agrees to include in such document a statement that Rebmann
has not been engaged to perform and has out performed, since the date of
our audit report being reproduced, any procedures on the financial
statements contained in such document or an any unaudited financial or
other information contained in the document or on the document itself.
It however, managementorthe City'sagent(such as an underwriter, bond
counsel, placement agent financial adwsm, braker-dealer, etc) requests
our involvement, thereby cousin us to be engaged to or otherwise
prepare a written acknowledgement (sometimes referred to as
'consi Waged, to include) letter priorto including our audit report in
such a document, or requests or engages us to assist in preparing or
reviewing financial or other Information contained in such document or
participate in related oral due diligence meetings or offering discussions,
our Firm then becomes associated with the document. In this event, In
accordance with professional standards, we will be required to Perform
certain subsequent events -based or other limited procedures with
respect tothis or other unaudited information contained in the document
shortly before the initial Old any subsequent distribution, circulation, or
submission. Fees for missuance or inclusion of our audit report in such a
document will be based on our standard hourly rates. If the City wishes to
make reference in such a document to our rim's rose in connection with
the purpose and dissemination of the document, the aptlon
'Independent Auditors' may be used to title or label that section of the
comment In accordance with professional standards, the caption
'Experts' should not be used, nor should our Fee be referred N'as
'Experts' anywhere In the document
INFORMAL ADVICE -As part of our engagement we may provide advice
an operating internal control over financial reporting and other matters
that come to our attention. Informal advice is net considered to be a
consulting service unless we have entered into a separate engagement.
THIRD PARTVPROCEEDINGS-Asa result ofour prior or future services
to the City, we, might be requested or subpoenaed to provide information
or documents to management, a court, a trier of fad, or a third party in a
legal. Investigative, regulatory, administrative, mediation, or arbitration
or similar proceeding in which we are not a party. Ifthis occurs, our efforts
In complying with such requests will be billable to the City as a separate
engagement. We shall be entitled to compensation for our time at our
standard or special hourly rates and reasonable reimbursement for our
expenses (including our legal fees) in complying with this request For all
such requests, we will observe the confidentiality requirements of our
profession and will notify management promptly of the request This
paragraph will survive the termination of this agreement for any reason,
and will be binding upon successors to the City.
PEER REVIEW - Our Firm, as well as other major accounting firms,
participates in a'peer revievf program covering our audit and accounting
practices. This program reticles that once every three years we subject
our quality assurance practices to an examination by another accounting
firm. As part of the process, the Peer reviewer will review sample of our
work It is Possible that the work we perform for the City may be selected
by the Peer ratlewerfortheirinsPection. If it is, the peerreviewer is bound
by Professional standards to keep all information confidential. If
management objects to having theworkwe perform for the City reviewed
by our peer reviewer. please notify us In writing
PROMOTIONAL MATERIALS -The City consents to Rebmann's use of
your City name and a factual description of the services to be Performed
by Rebmann under this agreement In Rehmann's advertising and
promotional materials and other proposal apportunities.
MEDIATION -If any dispute arises among the parties hereto, the parties
agree first to try in good faith to settle the dispute by mediation
administered by the American Arbitration Association under its Rules far
Professional Accounting and Related Services Disputes before resorting
to binding arbitration or litigation. Costs of any mediation proceeding
shall be shared equally by all parties.
GOVERNING LAW - This Agreement shall be governed by and construed
in accordance with the laws ofthe State of Michigan, without regard to the
principles of conflicts of law thereof.
Rehmann
EXAMPLE CHANGE ORDER
Client: City of Sebastian (the "City")
Date:
Project Description (and estimated completion date, if appropriate):
Estimated Additional Fees:
We believe it is our responsibility to exceed the City's expectations. This Change Order is being prepared
because performance by us of the above project and/or additional service efforts was not anticipated in our
original Agreement dated May 19, 2022. The estimated fees for the above project have been mutually agreed
upon by the City and Rehmann. It is our goal to ensure that the City is never surprised by the price for any
Rehmann service and, therefore,we have adopted the Change Order Policy.The estimated additional amount
above is due and payable upon completion of the project described.
If management agrees with the above project description and the estimated fee amount, please authorize and
date the Change Order below. A copy is enclosed for the City's records. Thank you for letting us serve the
City.
Agreed to and accepted:
Officer Signature
Printed Name
Title
Date
Clifionl.amonMan LLP
CLAwnnecimm
REPORT ON THE FIRM'S SYSTEM OF QUALITY CONTROL
September 15, 2020
To the Principals of Rehmann Robson LLC
and the National Peer Review Committee
We have reviewed the system of quality control for the accounting and auditing practice of Rehmann
Robson LLC (the Firm) applicable to engagements not subject to PCAOB permanent inspection in
effect for the year ended March 31, 2020. Our peer review was conducted in accordance with the
Standards for Performing and Reporting on Peer Reviews established by the Peer Review Board of the
American Institute of Certified Public Accountants (Standards).
A summary of the nature, objectives, scope, limitations of, and the procedures performed in a System
Review as described In the standards may be found at www.aicoa.oro/qrsummarv. The summary also
includes an explanation of how engagements identified as not performed or reported in conformity with
applicable professional standards, if any, are evaluated by a peer reviewer to determine a peer review
rating.
Firm's Responsibility
The Firm is responsible for designing a system of quality control and complying with it to provide the
Firm with reasonable assurance of performing and reporting in conformity with applicable professional
standards in all material respects. The Firm is also responsible for evaluating actions to promptly
remediate engagements deemed as not performed or reported in conformity with professional
standards, when appropriate, and for remediating weaknesses in its system of quality control, if any.
Peer Reviewer's Responsibility
Our responsibility is to express an opinion on the design of the system of quality control and the Firm's
compliance therewith based on our review.
Required Selections and Considerations
Engagements selected for review included engagements performed under Goverment Auditing
Standards (including compliance audits under the Single Audit Act), audits of employee benefit plans,
an audit performed under the Federal Deposit Insurance Corporation Improvement Act (FDICIA), and
an examination of a service organization (SOC 1 engagement).
As a part of our peer review, we considered reviews by regulatory entities as communicated by the
Firm, if applicable, in determining the nature and extent of our procedures.
ee Nexiaia
InternaLonal
To the Principals of Rehmann Robson LLC
and the National Peer Review Committee
Page 2
Opinion
In our opinion, the system of quality control for the accounting and auditing practice of Rehmann
Robson LLC applicable to engagements not subject to PCAOB permanent inspection in effect for the
year ended March 31, 2020, has been suitably designed and complied with to provide the Firm with
reasonable assurance of performing and reporting in conformity with applicable professional standards
in all material respects. Firms can receive a rating of pass, pass with deficiency(ies), or fail. Rehmann
Robson LLC has received a peer review rating of pass.
CliftonLarsonAllen LLP
City of Sebastian
427575
Zehmann
E-Billing Enrollment/Confirmation
Timely and easy -to -access invoices and statements will now be emailed to you. Please provide your
contact information below to starttaking advantage of electronic invoicing and statements.
Primary Billing Contact:
Billing Phone Number:
Email Address:
Comments:
If you are already taking advantage of e-Billing, we will confirm this information in our systems.
Additionally, the billing contact will receive information on e-Payment options to simplify your accounts
payable process.
Zehnnann
1111 1 .I i I II LII 1 .I 11 .I ■, . 1 1111 1 Il.
Page:
1
Rehmann
Date:
12101/22
EMPOWER YOUR PURPOSE
INVOICE Client:
Job:
427575
1395937
Inv#:
RR738705
City of Sebastian
Rehmann Robson
1225 Main St
Vero Beach Office
Sebasfian, FL 32958
772,234,8484
Progress billing for the 09130/2022 audit: $ 20.790.00
Payment #1 from the schedule below
Payment schedule:
Payment 1 $20,790 121OV2022
Payment 20,790 01131f2023
Payment 3 4.620 Upon report issuance
Total $�4 .200
Current Total $ 20,790.00
Please detach and return with payment
Please make all checks payable to "Rehmann" Amount Due: $ 20,790.00
For lire Tmnsters call 989.797.8443
Date: 12/01/22 For Credit Card payments visit rehmann.com or call 877.589.8640 Amount Paid:
Inv#: RR738705 Rehmann now charges a 3% convenience fee on credit card payments
(For account questions email: accounts.receivable rehmann.com)
Client: 427575
Job: 1395937
Rehmann Robson
City of Sebastian Vero Beach Office
1225 Main St 5070 Highway A1A
Sebastian, FL 32958 Suite 250
Vero Beach, FL 32963
Credit tenons: Unpaid invoices 30days after the invoice date ore subjw to a finance charge of I V2%per month UWs per annum7.
Rehmann
EMPOW Ell YOUR PURPOSE
City of Sebastian
1225 Main St
Sebastian, FL 32958
Progress billing for the 09/30/2022 audit:
Payment #2 from the schedule below
Payment schedule:
Payment 1
Payment
Payment
Total
Current Total
$20,790 12/012022
20,790 OT3112023
4 620 Upon report Issuance
6 200
INVOICE
Please detach and return with payment
Page:
1
Date:
1131/23
Client:
427575
Job:
1395937
Inv#:
RR738706
Rehmann Robson
Vero Beach Office
772.234.8484
$ 20,790.00
$ 20,790.00
Please make all checks payable to "Rehmann" Amount Due: $ 20,790.00
For fire Transfers call 989.797.8443
Date: 1/31/23 For Credit Card payments visit rehmann.com or call 877.589.8640 Amount Paid:
Inv#: RR738706 Rehmann now charges a 3% convenience fee on credit card payments
(Foraccount questions email: accounts.receivable@rehmann.com)
Client: 427575
Job: 1395937
Rehmann Robson
City of Sebastian Vero Beach Office
1225 Main St 5070 Highway A1A
Sebastian, FL 32958 Suite 250
Vero Beach, FL 32963
Cmdit lama: Unpaid invoices M days afln the invoice dart am subj., io a fimnm cbargc of 1 @% permonN px'. per annuml.
Rehmann
Wpowl tyOURRURRO6E
City of Sebastian
1225 Main St
Sebastian, FL 32958
Progress billing for the 09/30/2022 audit:
Payment #3 from the schedule below
Payment schedule:
Payment 1
Payment 2
Payment 3
Total
Current Total
$20,790 12/012022
20,790 073112023
4.620 Upon report Issuance
6 20
INVOICE
Please detach and return with payment
Page:
1
Date:
3/31/23
Client:
427575
Job:
1395937
Inv#:
RR738707
Rehmann Robson
Vero Beach Office
772.234.8484
$ 4,620.00
$ 4,620.00
Please make all checks payable to "Rehmann" Amount Due: $ 4,620.00
For lire Transfers call 989.797.8443
Dale: 3/31123 For Credit Card payments visit rehmann.com or call 877.589.8640 Amount Paid:
Inv#: RR738707 Rehmann now charges a 3% convenience lee on credit card payments
(For account questions email: accounts.receivable@nshmann.com)
Client: 427575
Job: 1395937
Rehmann Robson
City of Sebastian Vero Beach Once
1225 Main St 5070 Highway AlA
Sebastian, FL 32958 Suite 250
Vero Beach, FL 32963
Credit tems: Unpaid invoices 30 days aaer the invoice dam are subjecua a finance charge of] n%per month( I Mperannumj.
Select Year: 2021 v F507
The 2021 Florida Statutes
Title XIV QMDter 218 View Entire
TAXATION AND FINANCIAL MATTERS PERTAINING TO POLITICAL Cha er
FINANCE SUBDIVISIONS
218.391 Auditor selection procedures.—
(1) Each local governmental entity, district school board, charter school, or charter technical
career center, prior to entering into a written contract pursuant to subsection (7), except as
provided in subsection (8), shall use auditor selection procedures when selecting an auditor to
conduct the annual financial audit required in s. 218.39.
(2) The governing body of a county, municipality, special district, district school board,
charter school, or charter technical career center shall establish an auditor selection committee.
(a) The auditor selection committee for a county must, at a minimum, consist of each of the
county officers elected pursuant to the county charter or s. 1(d), Art. VIII of the State
Constitution or their respective designees and one member of the board of county commissioners
or its designee.
(b) The auditor selection committee for a municipality, special district, district school board,
charter school, or charter technical career center must consist of at least three members. One
member of the auditor selection committee must be a member of the governing body of an entity
specified in this paragraph, who shall serve as the chair of the committee.
(c) An employee, a chief executive officer, or a chief financial officer of the county,
municipality, special district, district school board, charter school, or charter technical career
center may not serve as a member of an auditor selection committee established under this
subsection; however, an employee, a chief executive officer, or a chief financial officer of the
county, municipality, special district, district school board, charter school, or charter technical
career center may serve in an advisory capacity.
(d) The primary purpose of the auditor selection committee is to assist the governing body In
selecting an auditor to conduct the annual financial audit required in s. 218,39; however, the
committee may serve other audit oversight purposes as determined by the entity's governing
body. The public may not be excluded from the proceedings under this section.
(3) The auditor selection committee shall:
(a) Establish factors to use for the evaluation of audit services to be provided by a certified
public accounting firm duly licensed under chapter 473 and qualified to conduct audits in
accordance with government auditing standards as adopted by the Florida Board of Accountancy.
Such factors shall include, but are not limited to, ability of personnel, experience, ability to
furnish the required services, and such other factors as may be determined by the committee to
be applicable to its particular requirements.
(b) Publicly announce requests for proposals. Public announcements must include, at a
minimum, a brief description of the audit and indicate how interested firms can apply for
consideration.
(c) Provide interested firms with a request for proposal. The request for proposal shall
include information on how proposals are to be evaluated and such other information the
committee determines is necessary for the firm to prepare a proposal.
(d) Evaluate proposals provided by qualified firms. If compensation is one of the factors
established pursuant to paragraph (a), it shall not be the sole or predominant factor used to
evaluate proposals.
(e) Rank and recommend in order of preference no fewer than three firms deemed to be the
most highly qualified to perform the required services after considering the factors established
pursuant to paragraph (a). If fewer than three firms respond to the request for proposal, the
committee shall recommend such firms as it deems to be the most highly qualified.
(4) The governing body shall inquire of qualified firms as to the basis of compensation, select
one of the firms recommended by the auditor selection committee, and negotiate a contract,
using one of the following methods:
(a) If compensation is not one of the factors established pursuant to paragraph (3)(a) and not
used to evaluate firms pursuant to paragraph (3)(e), the governing body shall negotiate a
contract with the firm ranked first. If the governing body is unable to negotiate a satisfactory
contract with that firm, negotiations with that firm shall be formally terminated, and the
governing body shall then undertake negotiations with the second -ranked firm. Failing accord
with the second -ranked firm, negotiations shall then be terminated with that firm and
undertaken with the third -ranked firm. Negotiations with the other ranked firms shall be
undertaken in the same manner. The governing body, in negotiating with firms, may reopen
formal negotiations with any one of the three top -ranked firms, but it may not negotiate with
more than one firm at a time.
(b) If compensation is one of the factors established pursuant to paragraph (3)(a) and used in
the evaluation of proposals pursuant to paragraph (3)(d), the governing body shall select the
highest -ranked qualified firm or must document in its public records the reason for not selecting
the highest -ranked qualified firm.
(c) The governing body may select a firm recommended by the audit committee and
negotiate a contract with one of the recommended firms using an appropriate alternative
negotiation method for which compensation is not the sole or predominant factor used to select
the firm.
(d) In negotiations with firms under this section, the governing body may allow a designee to
conduct negotiations on its behalf.
(5) The method used by the governing body to select a firm recommended by the audit
committee and negotiate a contract with such firm must ensure that the agreed -upon
compensation is reasonable to satisfy the requirements of s. 218.39 and the needs of the
governing body.
(6) If the governing body is unable to negotiate a satisfactory contract with any of the
recommended firms, the committee shall recommend additional firms, and negotiations shall
continue in accordance with this section until an agreement is reached.
(7) Every procurement of audit services shall be evidenced by a written contract embodying
all provisions and conditions of the procurement of such services. For purposes of this section, an
engagement letter signed and executed by both parties shall constitute a written contract. The
written contract shall, at a minimum, include the following:
(a) A provision specifying the services to be provided and fees or other compensation for such
services.
(b) A provision requiring that invoices for fees or other compensation be submitted in
sufficient detail to demonstrate compliance with the terms of the contract.
(c) A provision specifying the contract period, including renewals, and conditions under which
the contract may be terminated or renewed.
(8) Written contracts entered into pursuant to subsection (7) may be renewed. Such renewals
may be done without the use of the auditor selection procedures provided in this section.
Renewal of a contract shall be in writing.
(9) If the entity fails to select the auditor in accordance with the requirements of subsections
(3)-(6), the entity must again perform the auditor selection process in accordance with this
section to select an auditor to conduct audits for subsequent fiscal years.
History.— . 65, ch. 2001-266; s. 1, ch. 2005.32; s. 15, ch. 2019-15.
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HOME OF PELICAN ISLAND
CITY COUNCIL AGENDA TRANSMITTAL
COUNCIL MEETING DATE: June 8, 2022
AGENDA ITEM TITLE: Approval to Engage the Auditing Firm of Rebmann Robson to Perform Auditing
Services for the City for the Fiscal Year Ending September 30, 2022 and for the City
Manager to sign the Engagement Letter.
RECOMMENDATION: Staff recommends that Rebmann Robson be Engaged to Perform Auditing Services.
BACKGROUND: The City initiated the Auditor Selection process in accordance with Florida Statutes
218.391. This included the appointment of the Auditor Selection Committee and advertising a request for proposal (RFP). A
mandatory pre -proposal meeting was established with the RFP. There were no firms that appeared at that scheduled meeting.
Following up with several firms we presumed to have an interest, we understand that two believed their fee would be
unacceptable, one had the employee responsible absent due to COVID and one was just mistaken on the scheduled date of the
meeting.
Paragraph (9) of Statute 218.391 provides that if an entity fails to select the auditor in accordance with the process, we must
again perform the selection process for subsequent fiscal vears. Considering the time needed to re -advertise the F FP well
enough in advance to allow any new firm to adequately prepare for the audit, Staff recommends that Rebmann Robson, the
City's present auditor, be engaged to perform this year's audit and defer the selection process to next fiscal year.
Rehman Robson has agreed to keep the same terms and pricing as this year. So it will be $41,400 for the financial audit, S4,800
for the single audit and $5,000 for the requirement to have a separate audit on the Community Redevelopment Agency.
IF AGENDA ITEM REQUIRES EXPENDITURE OF FUNDS:
Budgeted Amount: $51,200
Appropriation Required: To be included in FY 2022-23 Annual Budget
ATTACHMENT:
1. Florida Statutes 218.391
2. City Wide Engagement Letter
3. CRA Engagement Letter
Administrative Services Department eview.
City Attorney Review: /
Procurement Division Rev' w, if ap licabl �i-- Z -- 2 2-
City Manager Authorization: /
Date: —41