Proposal for Financial Auditing Services RFP No THE TOWN

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					      Proposal for
       Financial
    Auditing Services
    RFP No. 2009-006

    THE TOWN OF
LOXAHATCHEE GROVES,
      FLORIDA




For the fiscal years ending
   September 30, 2009,
      2010 and 2011
     (with two one-year
      renewal options)




 CONTACTS & AUTHORIZED
     REPRESENTATIVE:
Ross A. Whitley, CPA, Partner
301 Clematis Street, Suite 3000
 West Palm Beach, FL 33401

  Telephone: (561) 837-6627
     Fax: (561) 837-6632

       November 2, 2009
                             TABLE OF CONTENTS
                                                                                    Page
TRANSMITTAL LETTER                                                                    1

FIRM QUALIFICATIONS AND EXPERIENCE

       Independence                                                                  4
       Licenses to Practice                                                          4
       History                                                                       5
       Size                                                                          5
       General Capabilities and Strengths of Berman Hopkins                          5
       Project Management                                                            6
       Statement of Federal or State Desk Review & Disciplinary Action               6
       Quality Control & Peer Review                                                 7
       Audit Organization Chart                                                      9
       BHWL’s Policy on Staffing Engagement                                          9
       Approach to Continuing Professional Education                                 9
       CPE offered to the Town                                                       9
       Engagement Team Resumes
             Ross A. Whitley, CPA                                                   10
             Laura Prevratil, CPA, CFE                                              12
             Heather Christmas, CPA                                                 14
             Mario Newman                                                           15

       Similar Engagements                                                          16

AUDIT APPROACH
      Statement of the Proposed work Objective and Scope
       Auditing Standards and Scope of Services                                     19
       Audit Reports                                                                19
       Assistance from the Town                                                     19
      Proposed Work Plan with Project Loading Chart                                 20
      Segmentation of the Audit                                                     20
      Planning Phase and Interim Work                                               20
      Field Work                                                                    21
      Post Field Work and Reporting                                                 22
      Sample Sizes and Extent of Statistical Sampling                               22
      Extent of use of EDP Software in the Engagement                               23
      Type and Extent of Analytical Procedures                                      23
      Approach to be Taken in Understanding the Internal Control Structure          24
      Approach to be Taken in Determining Laws and Regulations
         Subject to Audit Test Work                                                 24
      Approach to be Taken in Drawing Audit Samples for Purposes of Tests
       of Compliance                                                                25
      Approach to be Taken concerning Fraud                                         25
      Approach to be Taken in Identifying of Anticipated Potential Audit Problems   25
      Approach to be Taken to Assist the Authority in Implementation of New GASB    26
      Work Paper Retention                                                          28
      Conclusion                                                                    28

PRICE PROPOSAL                                                                      29
                                                          TRANSMITTAL LETTER

                           Town Office
                           Town of Loxahatchee Groves, Florida
                           14579 Southern Boulevard, Suite 2
                           Loxahatchee Groves, Florida 33470

                           RE: PROPOSAL FOR FINANCIAL AUDITING SERVICES

                           The partners and employees of Berman Hopkins Wright & LaHam, CPAs & Associates,
                           LLP (“BHWL”) thank you for allowing us to submit our proposal to conduct independent
                           auditing services for the Town of Loxahatchee Groves, Florida (the “Town”) for the
 8035 Spyglass Hill Road   fiscal years ending September 30, 2009, 2010 and 2011 with two one (1) year renewal
    Melbourne, FL 32940    options. It is the policy of our firm to submit proposals only on engagements on which
           321.757.2020    we believe we possess the technical expertise and staffing necessary to provide
      FAX 321.242.4844     superior auditing services. We believe that we have assembled a team that has the
                           necessary knowledge, ability and resources to successfully perform the quality
                           auditing services requested by the Town.
     480 N. Orlando Ave.
               Suite 218   Understanding of the Scope of Work
   Winter Park, FL 32789      We will express an opinion on the fair presentation of the Town of Loxahatchee
           407.644.5811       Groves’ basic financial statements, in conformity with U.S. generally accepted
      FAX 407.644.6022        accounting principles. We will also express an opinion, based on our audit of and
                              “in relation to” the basic financial statements taken as a whole, and on the
                              introductory section, combining and individual fund financial statements, statistical
     301 Clematis Street      tables and other supporting schedules. We will apply certain limited procedures
             Suite 3000       involving supplementary information required by the Government Accounting
W. Palm Beach, FL 33401       Standards Board (GASB), though we will not audit the information or issue an
          561-837-6627        opinion on it.
      FAX 561-837-6632

                               Our audit will be performed in accordance with generally accepted auditing
                               standards set forth by the American Institute of Certified Public Accountants
                               (AICPA), the U.S. General Accounting Office’s (GAO) Government Auditing
   www.bermanhopkins.com
                               Standards, the provisions of the Federal Single Audit Act Amendments of 1996 and
                               the U.S. Office of Management and Budget (OMB) Circular A-133, “Audits of
                               States, Local Governments, and Non-Profit Organizations,” the Florida Single Audit
                               Act, Section 215.97, Florida Statutes, and the Rules of the Auditor General of the
                               State of Florida, as amended from time to time.




                                                                  1
In addition to our report on the fair presentation of the basic financial statements as discussed
above, we will issue our report on internal control over financial reporting and on compliance and
other matters, performed in accordance with Government Auditing Standards, a report on
compliance applicable to each major program and on Internal Control Over Compliance in
accordance with OMB Circular A-133.

We will include a management letter as required by the Florida Auditor General’s Rules Chapter
10.550.

We will review and make recommendations regarding required note disclosures for the Town’s
financial statements. We will also provide guidance and assist implementing changes in
governmental accounting standards.

Commitment to Meet Time Requirements

We commit to performing the fiscal year ending September 30, 2009, audit as defined in the Town’s
“Request for Proposal.” We will complete interim work by February 28th for the September 30, 2009
audit and January 30th thereafter. We will provide a camera ready original of the Comprehensive
Annual Financial Report (CAFR) to the Town Management Office by March 30th.

We will maintain open lines of communication with your Town accountant and the Town
Council. We are available to consult with you on business transactions, auditing and
accounting issues, compliance procedures for new laws and regulations that fall within the
scope of our services, and profit advisory issues.

Why Should You Select BHWL as Your Professional Audit Team?

We are a large Brevard County firm that has been performing governmental auditing and
accounting services since 1958. Our team of professionals remain current on key issues,
accounting and auditing principles, and governmental rules and regulations. Our comprehensive
governmental auditing experience and education is and will continue to be outstanding.

Governmental accounting is currently one of the most dynamic industries. In recent years
voluminous new rules and regulations regarding governmental accounting have been issued
and, unlike regulations in other industries, the new governmental guidance is coming from a
plethora of agencies. For entities like the Town of Loxahatchee Groves, Florida, rules and
regulations are being issued not only by the State of Florida Auditor General, but also several
other agencies such as the Office of Management and Budget, Governmental Accounting
Standards Board, American and Florida Institutes of Public Accountants, and the Comptroller
General of the United States of America, to name a few. As a result of the amount of agencies
that regulate governmental accounting, we believe auditors must continually monitor evolving
issues and not just during the late summer months when planning September year-end entities.




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                   FIRM QUALIFICATIONS AND EXPERIENCE

INDEPENDENCE

BHWL is independent with respect to the Town of Loxahatchee Groves, Florida and all of the
component units as defined by U.S. generally accepted auditing standards and the U.S. General
Accounting Office’s Government Auditing Standards.

We have had no professional relationship with the Town or any of its component units during the
past three years and have no conflict of interest relative to performing this engagement.

LICENSE TO PRACTICE

We are members in good standing with the American Institute of Certified Public Accountants
(AICPA). The Certified Public Accountants (CPAs) employed at our firm have active individual
licenses in the State of Florida issued by the Department of Business and Professional Regulation
Board of Accountancy as Certified Public Accountants. Our firm is licensed as a Registered Limited
Liability Partnership (LLP). This license is through the year ending December 31, 2009, and is
promptly renewed at the time of expiration. Our CPAs’ licenses expire every two years and vary
depending on the year they were first licensed. We maintain a file copy of all active licenses. Our
quality control procedures require us to keep this file active by ensuring we receive a copy of all
newly issued licenses as soon as they are received annually.




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                   FIRM QUALIFICATIONS AND EXPERIENCE


HISTORY

Berman Hopkins Wright & LaHam CPAs and Associates, LLP (“BHWL”) is a Registered Limited
Liability Partnership and has been doing business as a Certified Public Accounting and
Business Consulting firm since 1958 in Brevard County, Florida. We are a regional Central
Florida firm with three offices located in West Palm Beach, Orlando and Melbourne. This
engagement will be performed primarily from our West Palm Beach office at:

                                 301 Clematis Street, Suite 3000
                                 West Palm Beach, Florida 33401

                                   Telephone: 561-837-6627
                                       FAX: 561-837-6632
                                E-mail: info@bermanhopkins.com
SIZE

We have become one of the largest and most respected CPA and consulting firms in Central
Florida. The exceptional reputation that we have earned in the community is the result of hard
work and commitment to quality service by all our staff. Our staff works out of both offices to
serve our clients. There are over 80 BHWL team members ready to serve your accounting,
auditing and management needs, with approximately 20 team members experienced in
government auditing.

BHWL is a firm with international accounting resources through its membership in the
International Group of Accounting Firms (IGAF). Our business network offers you the capability
of obtaining pertinent information that will assist you in any business opportunity you may
encounter. Our IGAF business network has over 300 accounting offices around the world.

Our primary markets of service include governmental auditing for counties, cities, towns and
special purpose governments, corporate audits including SEC corporations, construction
contractors, dealerships and non-profits. In addition BHWL also provides consulting services
for SEC Sarbanes-Oxley internal control consulting and various tax related services.

Currently, there are no outstanding claims, litigation or threatened claims of litigation of which
BHWL is aware which involve any Florida based office or threatens the existence of our current
stability.

General Capabilities and Strengths of Berman Hopkins

BHWL has the comprehensive auditing experience to meet your needs. We have an excellent
record of proven performance for other cities, towns, counties and other governmental entities.
BHWL has performed many governmental audits which have implemented GASB 34 and
subsequent related pronouncements, and has assisted with the implementation of GASB 34.

We are very familiar with the financial reporting and auditing requirements of the Office of
Management and Budget. This includes OMB A-133 compliance supplements, the Schedule of
Expenditures of Federal Awards, the Financial Data Schedule, and specific federal grant auditing
requirements.



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                   FIRM QUALIFICATIONS AND EXPERIENCE

General Capabilities and Strengths of Berman Hopkins (continued)

We are active members of the Brevard Chapter of the Government Finance Officer’s Association
(GFOA). Through these associations, we participate in education programs to maintain our
governmental expertise. One of our management staff assigned to your engagement team has
presented educational classes to both of these organizations, and has presented on the
implementation of GASB No. 40, Deposits and Investments Risk Disclosures.

We are also involved in the FICPA “Not for Profit Committee” and the “State & Local Section” which
gives us insight to any potential nonprofit component units, accounting and auditing standards, and
compliance auditing that affect governments such as SAS No. 96 on audit documentation, SAS No.
99 regarding fraud, GASB No. 34 and 40.

Project Management

The audit team we are committing to the Town of Loxahatchee Groves, Florida represents
our best staff with many years of experience and a vast amount of governmental accounting
and auditing knowledge. All management personnel assigned to this engagement are CPAs
and meet or exceed the governmental accounting education requirements.

   The staff assigned to this engagement are as follows:

            Partners:     Ross A. Whitley, CPA, Partner-in-Charge

            Auditors:     Laura Prevratil, CPA, CFE, Technical Review Manager
                          Heather A. Christmas, CPA, Senior
                          Mario Newman, Staff Auditor

   You are assured our staff are qualified and will perform to the best of their ability. The staff
   essential to the continuity of this engagement will be available throughout the contract
   period. Once fieldwork has started for a particular audit, the personnel assigned to that
   audit will remain in the field until all work is completed.

   Heather Christmas will be assigned to this engagement on a full time basis. The partner
   and manager team will be assigned on a part-time basis to specific segments requiring their
   levels of experience and expertise. You are assured our staff are qualified and will perform
   to the best of their ability.

Statement of Federal or State Desk Review & Disciplinary Action

BHWL has had no federal or state desk reviews or field reviews of our audits during the past three
(3) years. No disciplinary action from State regulatory bodies or professional organizations has
been taken against the firm during the past three (3) years, nor is any action pending.




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                   FIRM QUALIFICATIONS AND EXPERIENCE

Quality Control & Peer Review
Copies of our most recent external quality control review (peer review) reports and letters of
comments are included in this proposal. Our peer reviews included governmental engagements
subject to Government Accounting and Auditing Standards and OMB Circular A-133. Ross Whitley is
qualified to perform peer reviews of other CPA firms as part of the AICPA’s Peer Review Program.
Several of their reviews have included governmental engagements. Ross Whitley is currently serving
on the GFOA’s Special Review Committee, which is comprised of individuals who review the CAFRs
of local governmental entities in order to determine whether a CAFR meets the reporting
requirements necessary to obtain the Certificate of Achievement for Excellence in Financial
Reporting.

In addition, BHWL is a member of the AICPA Securities and Exchange Commission Practice Section
(SECPS) and the Private Companies Practice Section (PCPS), which requires a peer review by an
independent third party every three (3) years.

Our quality control process ensures our CPAs and staff accountants meet or exceed the continuing
professional education requirements of the Florida Board of Accountancy, Government Auditing
Standards, the AICPA, Florida Statutes, and BHWL’s Quality Control Document. We are in
compliance with the most recent Peer Review Performed in 2006.




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FIRM QUALIFICATIONS AND EXPERIENCE




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  “Bringing Solutions and Prosperity to our Clients Since 1958”
                   FIRM QUALIFICATIONS AND EXPERIENCE

Audit Organization Chart

                                     Ross A. Whitley, CPA
                                      Partner-in-Charge

                                  Laura Prevratil, CPA, CFE
                                  Technical Review Manager

                                   Heather Christmas, CPA
                                       Senior Auditor

                                         Mario Newman
                                          Staff Auditor


BHWL’s Policy on Staffing Engagement
The above audit team will be assigned to this engagement on a full-time basis. The partner support
team will be assigned on a part-time basis, as needed, based on their respective levels of
experience and expertise. The CPAs on the audit team have active individual licenses in the State
of Florida and meet all continuing professional education requirements. If for any reason the staff
assigned to the engagement needs to be modified, the replacement will be of equal
qualifications and the Town will be notified in writing beforehand.

Resumes of the partners, manager and senior auditor are included in this proposal.

Approach to Continuing Professional Education

Quality continuing professional education (CPE) is a priority at BHWL. We sponsor at least two
accounting and auditing CPE programs annually, including, at a minimum, one eight (8) hour
governmental seminar, to which firm members, clients, and friends of the firm are invited. All of our
professionals attend accounting, auditing, tax and management seminars and conferences
sponsored by the AICPA, FICPA, IGAF, the Florida Association of Housing and Redevelopment
Officials and the GFOA relating to their areas of expertise. Our Certified Public Accountants (CPAs)
meet or exceed the continuing professional education requirements for Government Auditing
Standards, the AICPA, the Florida Board of Accountancy, Florida Statutes, and BHWL’s Quality
Control policies. Our government sector auditors attend several government accounting and
auditing seminars per year, including GASB updates and Florida Auditor General and FICPA local
government seminars.

CPE offered to the Town

We will not have any live local government-training. We will offer your staff access to our self
study government continuing education classes at no cost to you. We will also invite your staff
to our annual one day governmental training in Brevard County.




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           PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS
                         AND EXPERIENCE

ROSS A. WHITLEY, CPA
Partner-in-charge

      Education                                          Certification
   Louisiana State University                               Certified Public Accountant
    B.S. in Accounting                                         State of Florida, 1988
                                                               State of Louisiana, 1987
                                                            Certified Valuation Analyst - NACVA, 1995
Professional Experience
   Mr. Whitley has over 20 years of accounting, auditing and tax experience. He is a governmental
   auditor and consultant in addition to providing audit services to employee benefit plans of
   companies, unions, government and nonprofit organizations. Through the AICPA’s Peer
   Review Program, he has performed peer reviews of other Certified Public Accounting firms,
   including governmental engagements, since 1990. Mr. Whitley’s governmental accounting and
   auditing experience includes, yet is not limited to the following:

       •    Numerous Charter Schools (over 30)
       •    Brevard County, Florida
       •    Town of Indian River Shores, Florida
       •    City of Indian Harbour Beach, Florida
       •    Florida Auditor General Office
       •    Flagler County, Florida
       •    Okeechobee County, Florida

   Mr. Whitley has presented seminars and classes on various governmental accounting and
   finance issues. He has served as chairman of the finance committee for the town he resides in
   since 1993. He also serves as a technical reviewer for the Firm and, as such, reviews all (OMB)
   Circular A-133 engagements of the Firm. Mr. Whitley serves as the responsible partner for the
   firm with its membership in the AICPA’s Governmental Audit Quality Center.

   Mr. Whitley is experienced in the analysis, design and implementation of accounting systems
   that comply with Florida Statutes.

Professional/Community Affiliations
      • American and Florida Institutes of Certified Public Accountants
      • International Group of Accounting Firms
      • National Association of Certified Valuation Analysts
      • Candlelighters of Brevard
      • Leadership Brevard Alumni
      • Melbourne Kiwanis Club
      • South Brevard Habitat for Humanity
      • Town of Melbourne Village Finance Committee
      • Palm Bay Chamber of Commerce




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                       “Bringing Solutions and Prosperity to our Clients Since 1958”
         PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS
                       AND EXPERIENCE

ROSS A. WHITLEY, CPA
Partner-in-Charge (continued)

Professional Education
      Mr. Whitley has completed the required hours of continuing professional education as
      required by Government Auditing Standards, the AICPA, the Florida Board of Accountancy,
      Florida Statutes, and BHWL’s Quality Control Document. The following is a summary of
      continuing professional education for the past three (3) years.

                       (Items in bold are Governmental Accounting and Auditing CPE)
                                              ROSS WHITLEY, CPA
                                            CONTINUING EDUCATION
         Date            Sponsor       Class
                 6/18/09    BHWL       Charter School Training
                 5/15/09    BHWL       Predictive Index Training
                  5/1/09    BHWL       Governmental A & A Update
                  1/9/09     IGAF      IGAF Worldwide 4th Annual Business Assurance Conference
                12/17/08 Thomson       Functionality & Features for the Advanced User
                12/12/08    BHWL       A & A Update
                 11/7/08    FICPA      Overview of the AICPA Peer Review Program Standards
                 9/19/08     IPTF      Preapproved Site Rehabilitation Program
                 7/31/08    BHWL       Leadership Academy
                 6/27/08    BHWL       Governmental A & A
                 6/21/08 PASS Online   Personal & Professional Ethics for Florida CPAs
                 5/29/08    FICPA      State Auditor General Office Update
                 5/22/08    BHWL       Charter School Training
                 5/15/08    AICPA      National Conference on Employee Benefit Plans
                 2/12/08    BHWL       Yellow Book Musts vs Shoulds
                  2/1/08    BHWL       Audit Review
                 1/31/08    AICPA      EBPAQC Audit Designated Partner Live Forum
                 1/15/08    BHWL       PHA Work Group
                 1/15/08 Learnline     Record Retention & Destruction: Issues & Tips
                 1/11/08    BHWL       A & A Update
                  1/9/08     IGAF      Business Assurance Conference
                 11/2/07    BHWL       2007 New Standards Implementation
                 9/18/07     IPTF      Preapproved Site Rehabilitation Program Attestations
                 6/15/07     IGAF      Worldwide North America Conference
                  6/8/07    BHWL       Governmental A & A Update
                  1/5/07     IGAF      2007 Business Assurance Conference




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                        “Bringing Solutions and Prosperity to our Clients Since 1958”
           PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS
                         AND EXPERIENCE

LAURA PREVRATIL, CPA, CFE
Technical Review Manager

Education
                                                                 Certification
   University of Sarasota
                                                                  Certified Public Accountant
    Doctor of Business Administration,
                                                                    State of Florida, 2002
    Specialization in Accounting, 2008
                                                                  Certified Fraud Examiner, 2006
   Hofstra University
    MBA in Public Accounting, 1990
   Southampton College
    Bachelor of Fine Arts, 1984

Professional Experience
      Mrs. Prevratil has over twenty (20) years experience in the accounting field. Her local
      governmental accounting and auditing experience includes, yet is not limited to, the
      following:

       •    Palm Beach County (Internal Auditor)
       •    Palm Beach International Airport
       •    Boca Raton Airport
       •    Palm Beach County Solid Waste Authority
       •    Palm Beach County Health Care District
       •    Brevard County, Florida
       •    City of West Melbourne, Florida

Professional/Community Affiliations/Volunteer Work
      •   American Institute of Certified Public Accountants
      •   Florida Institute of Certified Public Accountants
      •   Institute of Internal Auditors
      •   Association of Certified Fraud Examiners
      •   American Academy of Financial Management
      •   United States Equestrian Team
      •   PBC Jewish Federation

Continuing Professional Education

       Mrs. Prevratil has completed the required hours of continuing professional education
       required by Government Auditing Standards, the AICPA, the Florida Board of Accountancy,
       Florida Statutes, and Berman Hopkins’ Quality Control Document. On the following page is
       a summary of her continuing professional education for the past three (3) years.




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        PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS
                      AND EXPERIENCE

LAURA PREVRATIL, CPA, CFE
Technical Review Manager (continued)

                    (Items in bold are Governmental Accounting and Auditing CPE)

                                   LAURA PREVRATIL, CPA, CFE
                                      CONTINUING EDUCATION
          Date          Sponsor         Class
       6/11/2009         BHWL           FAS 109 Tax Accrual/Disclosures & Tax Workpaper
       5/15/2009         BHWL           Predictive Index Training
        5/1/2009         BHWL           Governmental A & A Update
       12/12/2008        BHWL           A & A Update
       9/16/2008      MicroMash         GAO Standards: Revised Yellow Book, 2008
       9/10/2008      MicroMash         OMB Circular A-133: The Single Audit
       8/20/2008    Devry University    Forensic Accounting and the Legal Environment - Speaker
       6/26/2008         DBMS           IFRS Conversion - Speaker
       6/12/2008         DBMS           Performing Reviews - Speaker
        6/5/2008         DBMS           Quickbooks Product Information
        6/3/2008    WESTERN CPE         Ethics and Professional Conduct for Florida CPA's
       5/15/2008    Devry University    Accounting Fraud Examination Concepts - Speaker
        5/6/2008          Bisk          Webcast, International Financial Reporting
        5/1/2008    Kaplan University   External Auditing - Speaker
        2/1/2008    Devry University    Intermediate Accounting - Speaker
       1/30/2008     Western CPE        Federal Government Auditing
       1/30/2008     Western CPE        Realities of HUD Auditing
       1/10/2008         FICPA          Valuation, Forensic & Litigation Services
       11/9/2007         FICPA          Risk Assessment
       11/9/2007         FICPA          B12 - Condos, HOAs, Timeshares & Co-ops
       11/9/2007         FICPA          CIRA Accounting & Auditing Update
       11/8/2007         FICPA          Profession/Legislative Update
       11/8/2007         FICPA          B07 - Workpapers 101 - A Practical Approach
       11/8/2007         FICPA          Financial Statements
       11/8/2007         FICPA          B04 - Condo Conversions
       11/8/2007         FICPA          B10 - Pooling & Reserves
       11/8/2007         FICPA          B02 - The Four Evolutions of Country Club
       9/18/2007         FICPA          Forensic Acct. & Fraud Investigation
       9/18/2007         FICPA          CPA Update
       9/11/2007     Western CPE        The New Risk Assessment Standards
       8/30/2007         DBMS           Quickbooks Financial Statements
       8/23/2007         DBMS           Accounting Changes & Error Correction - Speaker
       6/30/2007    Devry University    Legal Aspects of Fraud
       6/21/2007         DBMS           Accountants' Liability
       6/14/2007         DBMS           Manufacturers' Production Deduction
        6/7/2007         DBMS           Direct Cash Flows - Speaker
       5/31/2007         DBMS           College Funding - 529 and Coverdell Plan
       1/25/2007         DBMS           Medicaid Elig for Nursing Home Care
       1/11/2007         DBMS           Long-Term Care
        1/4/2007         DBMS           Legal Liability




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         PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS
                       AND EXPERIENCE

HEATHER CHRISTMAS, CPA
Senior Accountant

Education:                                                      Certification
   University Of Central Florida                                   Certified Public Accountant
    B.S. in Accounting, 2003                                          State of Florida, 2009
Range of Experience
      Ms. Christmas joined BHWL in 2004. Her experience includes, yet is not limited to the
      following:

              •   Town of Indian River Shores, Florida
              •   Town of Malabar, Florida
              •   Town of Grant-Valkaria, Florida
              •   Town of Palm Shores, Florida
              •   City of Indian Harbour Beach, Florida
              •   City of West Melbourne, Florida
              •   Okeechobee County, Florida
              •   Various Charter Schools (over 30 audits)
              •   Miami-Dade Housing Agency

Continuing Professional Education
      Ms. Christmas completed the required hours of continuing professional education (CPE) of
      the Government Auditing Standards, the American Institute of CPAs, the Florida Board of
      Accountancy, and Berman Hopkins Wright & LaHam, CPAs, LLP's Personnel Guide. The
      following is a summary of continuing professional education for the past three (3) years.
                         (Items in bold are Governmental Accounting and Auditing CPE)
                                            HEATHER CHRISTMAS
                                           CONTINUING EDUCATION
       Date           Sponsor      Class
              8/21/09     FICPA    State and Local Government Accounting Conference
              6/18/09     BHWL     Charter School Training
              6/11/09     BHWL     FAS 109 Tax Accrual/Disclosures & Tax Workpapers
              5/13/09     BHWL     Idea Training
            5/1/09   BHWL          Governmental A & A Update
          12/12/08   BHWL          A & A Update
           11/4/08   BHWL          AuditSense Level 4
           6/27/08   BHWL          Governmental A & A Update
           5/22/08   BHWL          Charter School Training
            5/1/08    UCF          Financial Accounting & Auditing Government & Non Profit
           4/29/08   FICPA         State Auditor General's Office Update
           2/12/08   BHWL          Yellow Book Musts vs Shoulds
           1/11/08   BHWL          A & A Update
          12/14/07 FL Atl Univ     Auditing Theory & Practice
           11/2/07   BHWL          2007 New Standards Implementation
           8/14/07 FL Atl Univ     Accounting for E-Commerce
            8/3/07   BHWL          Leadership Academy
           6/22/07   BHWL          Audit Samplings & Tests of Control
           6/11/07   BHWL          SAS #112

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                          “Bringing Solutions and Prosperity to our Clients Since 1958”
         PARTNER, SUPERVISORY AND STAFF QUALIFICATIONS
                       AND EXPERIENCE

MARIO NEWMAN
Staff Accountant

Education:
   University Of Central Florida
    B.S. in Accounting, 2007
    MBA candidate

Range of Experience
      Mr. Newman joined BHWL in 2008.              His experience includes, yet is not limited to the
      following:

           •   Various Charter Schools (over 30 audits)
           •   Flagler County, Florida
           •   Brevard County, Florida
           •   Florida Auditor General Office
           •   Town of Indian River Shores, Florida

Continuing Professional Education
      Mr. Newman completed the required hours of continuing professional education (CPE) of
      the Government Auditing Standards, the American Institute of CPAs, the Florida Board of
      Accountancy, and Berman Hopkins Wright & LaHam, CPAs, LLP's Personnel Guide. The
      following is a summary of continuing professional education for the past two (2) years.

                       (Items in bold are Governmental Accounting and Auditing CPE)
                                               MARIO NEWMAN
                                            CONTINUING EDUCATION
               Date          Sponsor     Class
                                         Preapproved Site Rehabilitation Program Attestations
                  8/27/09        IPTF    Engagements
                  6/18/09       BHWL     Charter School Training
                  5/14/09       BHWL     Idea Training
                   5/1/09       BHWL     Governmental A & A Update
                 12/12/08       BHWL     A & A Update
                 11/12/08       BHWL     AuditWatch Level 2
                                         Peapproved Site Rehabiliation Program Attestations
                   9/19/08       IPTF    Engagements
                   6/27/08      BHWL     Governmental A & A Update
                   5/22/08      BHWL     Charter School Training




                                                   15
                       “Bringing Solutions and Prosperity to our Clients Since 1958”
                                     SIMILAR ENGAGEMENTS


Similar BHWL Engagements

BHWL has no prior engagements with the Town of Loxahatchee Groves.

                                                                      Principal
  Government Entity         Dates       Hours      Partner         Client Contact                 Address
                                                                Kathleen Prothman
 BREVARD COUNTY,           1978 -                                Assistant Finance             P.O. Box 1496
                                        3800      R. Whitley
     FLORIDA               Present                                     Director             Titusville, FL 32781
                                                                  (321) 637-2002

Scope of Engagement: Comprehensive financial audit of the Board of County Commissioners and Charter
Officers, including audits under the provisions of the Federal and Florida Single Audit Acts relating to federal
awards and state financial assistance, respectively.

Additional services : Assist in obtaining financial information, including preparation of parity tests, for new and
refunding bond issues.
                                                                 Jennifer Barker            1769 E. Moody Blvd.
    FLAGLER                2006 -
                                        1400      R. Whitley     Finance Director                Building 1
 COUNTY, FLORIDA           Present
                                                                 (386) 313-4008              Bunnel, FL 32110

Scope of Engagement: Comprehensive financial audit of the Board of County Commissioners, and all
Constitutional officers including audits under the provisions of the Federal and Florida Single Audit Acts relating to
federal awards and state financial assistance, respectively.
                                                                 Charlotte Luikart
    CITY OF WEST                                                                            2285 Minton Road
                             2008        450      R. Whitley     Finance Director
    M ELBOURNE                                                                          W est Melbourne, FL 32904
                                                                 (321) 727-7700

Scope of Engagement: Preparation of Comprehensive annual financial statement (CAFR) and external audit
meeting the requirements of OMB Circular A-133 and Federal and State Single Audit.
   CITY OF INDIAN                                                  Jackie Burnes           2055 S. Patrick Draive
                            1977-
  HARBOUR BEACH,                         350      R. Whitley       City Manager            Indian Harbour Beach,
                           Present
      FLORIDA                                                     (321) 773-3181                 FL 32937

Scope of Engagement: Comprehensive financial audit including preparation of GASB 34 Statements. Included
in the scope of our audit is a Public Employees Retirement System (police).
                                                               Judith L. Lewis, CPA
  TOWN OF INDIAN           2002 -                                                          6001 North A1A
                                         325      R. Whitley     Town Treasurer
   RIVER SHORES            Present                                                  Indian River Shores, FL 32963
                                                                 (772) 231-1771

Scope of Engagement: Comprehensive financial audit.




                                                         16
                           “Bringing Solutions and Prosperity to our Clients Since 1958”
                                SIMILAR ENGAGEMENTS


Similar Engagements in Size and Complexity

Our auditing experience has also included the following entities:

   CITIES AND TOWNS
      City of Cocoa Beach
      City of Palm Bay
      City of Satellite Beach
      Town of Indialantic
      City of West Melbourne
      City of Cocoa

   COUNTY GOVERNMENT
     Brevard County Board of County Commissioners
     Brevard County Clerk of the Circuit and County Courts
     Brevard County Consolidated Report
     Brevard County Property Appraiser
     Brevard County Sheriff
     Brevard County Supervisor of Elections
     Brevard County Tax Collector
     Okeechobee County Board of County Commissioners
     Martin County Tax Collector
     South Brevard Water Authority
     Nassau County

   OTHER LOCAL GOVERNMENTS
     A. Max Brewer Memorial Law Library
     Brevard Mosquito Control District
     Brevard Transportation Authority
     Space Coast Area Transit System
     Spessard Holland Golf Complex
     Technological Research and Development Authority
     Florida Housing Authorities Risk Management Insureds
     Jacksonville Port Authority
     Nassau County Port Authority
     Florida Space Authority
     Florida Space Research Institute
     Jacksonville Transportation Authority

   TAX DISTRICTS
     Barefoot Bay Recreation District
     Merritt Island Library Tax District
     North Brevard Public Library District
     Port Malabar Holiday Park Recreation District
     Bellalago Educational Benefit District
     Durbin Crossing Community Development District




                                                   17
                       “Bringing Solutions and Prosperity to our Clients Since 1958”
                              SIMILAR ENGAGEMENTS


Similar Engagements in Size and Complexity (continued)

   HOUSING AUTHORITIES
     Jacksonville Housing Authority
     The Housing Authority of the City of Fort Lauderdale
     Pinellas County Housing Authority
     The Housing Authority of the City of St. Petersburg
     The Brevard Family of Housing Authorities (Melbourne, Cocoa, and Brevard County)
     Tallahassee Housing Authority
     Clearwater Housing Authority
     Housing Authority of the City of Daytona Beach
     Housing Authority of the City of Fort Pierce
     Boca Raton Housing Authority
     Housing Authority of the City of Sanford
     Housing Authority of the City of Marianna

   CHARTER SCHOOLS
     Ten charter schools in Osceola County
     Three charter schools in Broward County
     One charter school in Palm Beach County
     One charter school in Hillsborough County
     Four charter schools in Brevard County
     Two charter schools in Lake County
     One charter school in Okaloosa County
     One charter school in Cobb County, Georgia
     One charter school in Washington, DC
     Six charter schools throughout the State of Arizona




                                                 18
                     “Bringing Solutions and Prosperity to our Clients Since 1958”
                                    AUDIT APPROACH

Statement of the Proposed work Objective and Scope

   Auditing Standards and Scope of Services

   We will perform an audit of the basic financial statements of the Town of Loxahatchee Groves
   for the fiscal years ending September 30, 2009, 2010 and 2011 with two one-year renewal
   option. Our audit will be performed in accordance with U.S. generally accepted auditing
   standards as set forth by the American Institute of Certified Public Accountants (AICPA), the
   U.S. General Accounting Office’s (GAO) Government Auditing Standards, the provisions of the
   Federal and Florida Single Audit Acts, the U.S. Office of Management and Budget (OMB)
   Circular A-133, “Audits of States, Local Governments, and Non-Profit Organizations,” Rules of
   the Auditor General of the State of Florida, and regulations of the Florida Department of
   Financial Services.

   We will perform tests of compliance with all applicable legal and regulatory requirements,
   including federal and state laws and regulations, grant agreements and debt covenants. We
   will perform tests of accounting records, internal control policies and procedures, and other
   procedures that we consider appropriate. We will make an immediate report of all irregularities
   and illegal acts that come to our attention during our audit to the Director of Finance, Town
   Manager and Town Council as appropriate.

   Audit Reports

   We will express an opinion on the fair presentation of the Town’s basic financial statements in
   conformity with U.S. generally accepted accounting principles. We will also express an
   opinion, in relation to the basic financial statements taken as a whole, on the Schedule of
   Expenditures of Federal Awards and State Financial Assistance. We will determine and report
   whether the Financial Report filed with the Florida Department of Financial Services is in
   agreement with the Town’s Annual Financial Audit Report for each audit year.

   We will also issue our Report on Internal Control over Financial Reporting and on Compliance
   and Other Matters, Report on Compliance with Requirements Applicable to Each Major
   Program and State Project and on Internal Control Over Compliance, Schedule of Findings
   and Questioned Costs, Management Letter, and any other reports required by the State of
   Florida Auditor General and State, Federal and local grantors associated with the annual
   financial report and as necessary for grant compliance. These reports will include any
   findings and management letter comments noted during our audit as required by the
   respective regulatory authority. We will discuss any findings or recommendations with the
   Town’s management prior to the release of our reports and assist in resolving any issues.

Assistance from the Town

   We understand that the Town’s staff and responsible management will be available to
   assist us by providing information, documentation and explanations during our audit and
   will prepare all confirmations as directed by Berman Hopkins.




                                                  19
                      “Bringing Solutions and Prosperity to our Clients Since 1958”
                                     AUDIT APPROACH

Statement of the Proposed work Objective and Scope (continued)

Proposed Work Plan with Project Loading Chart

Schedule of the FY 2009 Audit

Interim Work: We will finish the interim work by February 28 of the first year and January 30 of
each year thereafter.

Schedules to be prepared by the Town: We will provide the Director of Finance a list of all
schedules and confirmations to be prepared by the Town by November 20th.

Fieldwork: We will commence all fieldwork on approximately December 15th and be completed
as soon as is feasible.

We will report to the Town weekly the status of any potential audit adjustments so that the Town
may have adequate opportunity to investigate, gather information and respond if necessary.

Segmentation of the Audit

The proposed audit segmentation will be comprised of the following three major sections:

Planning Phase and Interim Work

We will meet with the Director of Finance and other key personnel immediately upon execution of
the audit contract in order to discuss any areas of concern the Town’s management may have and
to discuss audit timing, spacing, and items needed to conduct an efficient audit. We will then begin
our interim work and develop a detailed audit plan. The specific procedures to be performed during
the planning phase of the audit include the following:

       Review prior year financial statements, determine status of prior year findings and
       recommendations, and define key audit areas.
       Obtain organizational charts, manuals and programs. Document and test our
       understanding of the control environment, organizational structure, personnel
       policies, financial and other management information systems and disaster recovery
       through walk-through from initiation to inclusion in the financial statements.
       Develop a detailed audit plan, including time budgets and schedules.
       Document Federal and State grant or contract agreements and review minutes of
       the Board.
       Assess control risk and plan internal control, compliance, substantive and Single
       Audit testing. Perform testing as appropriate.
       Submit proposed journal entries to the Finance Department.
       Obtain information needed to prepare confirmations and attorney letter requests.




                                                   20
                       “Bringing Solutions and Prosperity to our Clients Since 1958”
                                     AUDIT APPROACH

Segmentation of the Audit (continued)

Planning Phase and Interim Work (continued)

       Obtain correspondence from regulatory agencies, if any.
       Make arrangements with the Information Technology Department to receive
       financial information downloads to be able to utilize data extraction software.

                                                              Planning & Interim Work
                                                                                              Partner/
                                                                                              Manager
                           Hours
    Partner/Manager            8                                                       16 %
    Senior                     8
                                                        68%
    Staff                     34                                                              Senior
          Total Audit Segment 50
                                                                                   16%
                                                                                              Staff


Field Work
Berman Hopkins personnel performing audit field work will reside at the Town’s office, as
necessary, to perform their specific assignments. The principal functions of the Partner-in-Charge
and Partner Support Team are to supervise and review the adequacy of our audit procedures and
work papers. The Technical Review Manager is responsible for supervising and reviewing all field
work procedures, preparing proposed management findings and recommendations, and drafting
audit reports. The Staff auditors perform audit procedures as assigned.

The specific procedures to be performed during the field work phase of the audit include the
following:

   Obtain September 30th trial balance, Schedule of Expenditures of Federal Awards and State
   Financial Assistance, final budget and related documents.
   Complete analytical review and other audit procedures.
   Obtain confirmations and attorney letters.
   Receive or prepare workpapers to support all major financial statements account.
   Submit proposed adjusted journal entries to the Finance Department.
   Discuss and resolve findings and recommendations with management.
   Finalize audit documentation.
   Prepare preliminary audit report and management comments.




                                                   21
                       “Bringing Solutions and Prosperity to our Clients Since 1958”
                                       AUDIT APPROACH

Segmentation of the Audit (continued)

                                                                       Field Work
                           Hours                                                              Partner/
    Partner/Manager            9                                                              Manager
    Senior                    17                                                       12%
                                                   65%
    Staff                     47
                                                                                              Senior
          Total Audit Segment 73


                                                                                               Staff
                                                                                 23%


Post Field Work and Reporting

We will use a combination of techniques for determining whether the financial statements
support an unqualified opinion. These methods include third-party confirmations, inquiries,
observations, analytical procedures and sampling. The specific procedures to be performed
during the Post Field Work and Reporting phase of the audit include the following:

   Review of audit procedures by our technical review manager and engagement partner.
   Review the Town’s CAFR.
   Review financial report filed with the Florida Department of Financial Services.
   Apply financial condition assessment procedures pursuant to Chapter 10.556(8), Rules of the
   Auditor General.
   Attend exit conferences with the Town’s Manager and Director of Finance.
   Finalize and issue audit reports.
                                                                    Post Field Work
                                                            50%
                                                                                             Partner/
                             Hours                                                           Manager
    Partner/Manager              6
    Senior                       6
            Total Audit Segment 12
                                                                                             Senior

                                                                               50%




                                                   22
                       “Bringing Solutions and Prosperity to our Clients Since 1958”
                            APPROACH TO ENGAGEMENT


Sample Sizes and the Extent of Statistical Sampling

Our firm uses computer generated random number sampling techniques with additional
stratification of large populations that have a wide range of dollar values. This method will be used
to test cash disbursements, fixed assets, SAS 99 Compliance and any other audit area as
appropriate. The size of our samples are statistically and judgmentally derived and vary depending
on the evaluation of the internal control structure and assessment of audit risk. We will also select
audit samples for tests of compliance and internal control, integrating these tests whenever
possible. Part of sampling will be performed utilizing data extraction software.

For general cash disbursements, our focus is on compliance, coding and classification, and
controls. We will group populations to the extent possible and select a sample of vendor checks
issued from each population for examination. We will examine purchase order approvals, the
proper recording of invoices and compliance with laws, regulations, contracts and grants, if
applicable.

For major federal programs and state projects under the federal and state Single Audit acts, we will
draw samples from each program or project.

For capital assets, we will examine the populations of additions and deletions. We will select our
individually significant items, based on materiality, in each population for examination. If we
determine the need exists for additional sampling, we will select a random number of assets to
examine in each remaining population. Our tests may also include observing the existence of the
asset.

Extent of Use of EDP Software in the Engagement

During our interim work, we will perform an evaluation of the Town’s data processing applications
and related internal control structure. We will evaluate the complexity of the computer operations,
the availability of data and the segregation of functions. We typically use a combination of manual
and computer-assisted audit techniques to obtain sufficient, competent audit evidence; we plan to
use data extraction or similar software to expedite the testing process. We will use our data
processing software in performing our tests as described above. Our workpapers are typically
prepared using Microsoft Office applications.

Type and Extent of Analytical Procedures

Our audit procedures include several levels of analytical review, often in combination with other
procedures, which we believe are essential elements of any audit. As part of our overall planning
for the engagement, we will perform an initial analytical review to identify accounts where significant
fluctuations have occurred. We will perform numerous analytical procedures during the course of
our audit, including substantive analytical review tests in appropriate areas. At the conclusion of our
field work, we will perform final financial statement analytical review procedures and the financial
condition assessment procedures required by the Florida Auditor General.




                                                    23
                        “Bringing Solutions and Prosperity to our Clients Since 1958”
                             APPROACH TO ENGAGEMENT


Type and Extent of Analytical Procedures (continued)

We plan to perform substantive analytical procedures in areas such as revenues and interest
income. For example, we will plan our expectations of grant revenues based on prior year results,
new grant contracts, and other information brought to our attention, and compare our expectations
to year-end results. We will also compare year-end results to budgeted revenues and confirm
certain sources of revenue such as grant revenue from the Federal and State agency. We will
investigate significant differences in order to determine whether further testing is warranted. We will
combine analytical with other procedures in areas such as payroll and depreciation expense. For
example, we will compare payroll expenditures to prior period actual and current year budgeted
amounts for reasonableness and perform substantive analytical procedures.

Approach to be Taken in Understanding the Internal Control Structure

During our interim work, we will perform an evaluation and test of the Town’s internal control
structure. This will be accomplished by reviewing and testing the design of the control procedures
related to each significant account balance, transaction, and disclosure from initiation to inclusion in
the financial statement. We will interview the Town’s personnel involved in transaction
processing and asset control, and review written policies and procedures manuals as well as
observing the process for compliance with the Town’s policies and procedures. For areas in
which controls appear strong, we will perform tests of these controls in order to determine the
level of reliance that can be placed upon them. Our testing and evaluation of the internal
control structure will greatly influence the timing, nature and extent of the substantive and
compliance audit procedures to be performed during the field work phase of our audit.

Approach to be Taken in Determining Laws and Regulations Subject to Audit Test Work

Auditing standards require that our audit be designed to provide reasonable assurance that the
Town’s financial statements are free of material misstatements resulting from noncompliance with
laws, regulations, contracts and grants and other matters that have a direct and material effect on
the determination of financial statement amounts. We are familiar with Federal and State laws and
regulations, including the Rules of the Auditor General that apply to governmental entities, and
continually review them for updates and changes. We will review meeting minutes, ordinances,
financial policies and procedures manuals, restrictive bond covenants, contracts and grant
documents (if applicable) during the interim and field work segments of our audit.

We will determine whether the Town complied with laws, regulations and the provisions of
contracts or grant agreements pertaining to Federal awards and State financial assistance that
could have a direct and material effect on each major program and project. We will review the
compliance requirements for, and internal control over, each major program and project to be
tested. We will perform testing, as described above, to determine whether the Town adhered to
the program/project’s compliance requirements and whether we note any reportable conditions
regarding internal control over compliance.




                                                    24
                        “Bringing Solutions and Prosperity to our Clients Since 1958”
                            APPROACH TO ENGAGEMENT

Approach to be Taken in Drawing Audit Samples for Purposes of Tests of Compliance

Whenever possible, we will integrate our tests of compliance with our tests of controls. We will plan
our tests of controls to support a low assessed level of control risk, typically resulting in a sample
size of 40 transactions for each major program and project. We will also select material bond
issues for restrictive covenant compliance testing, if applicable. Other compliance issues and
testing approaches will be determined after we have completed our planning process.

We will use computer generated random number sampling techniques when possible, with
additional stratification of large populations that have a wide range of dollar values. This method
will be used to test cash disbursements for purchases, payroll and any other audit areas as
appropriate.

Approach to be Taken concerning Fraud

BHWL approach to fraud will be in line with professional standards (SAS ((). We will document
accounting systems and conduct interviews with Towns staff to determine if the environment for
fraud exists. We will conduct unexpected audit steps and will do extensive testing of journal
entries. We will also test the use of credit cards/purchase cards along with any travel expenses.

Approach to be Taken in Identifying of Anticipated Potential Audit Problems

Should we become aware of any potential audit problems we will take the following approach to
resolve the problem:

1. Discussion with the Town’s management and the engagement team.
2. Telephone or written consultation with one or more of the following sources:

       a. The Government Accounting Standards Board Technical Inquiries.

       b. The American Institute of Certified Public Accountants Technical Information. This
          service often refers questions to other offices more directly involved in a specific issue.

       c. The Government Finance Officers' Association.

       d. Practitioners Publishing Company. This service provides research and analysis on
          current issues and technical assistance.

       e. The International Group of Accounting Firms' Technical Director.

       f.   Other large local or national CPA firms with whom we have established professional
            relationships and are confident they are technically qualified to consult on GAAP issues.
3. Technical research using computer databases and up-to-date library services in our internal
   library systems.
4. A meeting of BHWL's Accounting and Auditing Committee and consultation partner team.




                                                    25
                        “Bringing Solutions and Prosperity to our Clients Since 1958”
                            APPROACH TO ENGAGEMENT

Approach to be Taken in Identifying of Anticipated Potential Audit Problems (continued)
5. Telephone or written consultation with one or more of the following sources:
       a. The Government Accounting Standards Board Technical Inquiries.

       b. The American Institute of Certified Public Accountants Technical Information. This
          service often refers questions to other offices more directly involved in a specific issue.

       c. Practitioners Publishing Company. This service provides research and analysis on
          current issues and technical assistance.

       d. The International Group of Accounting Firms' Technical Director.

       e. The Government Finance Officers' Association.

       f.   Other large local or national CPA firms with whom we have established professional
            relationships and are confident they are technically qualified to consult on GAAP issues.
Once our research is complete, we will discuss the results with Town management to determine
any further courses of action, if necessary, in order to reach a mutually agreed solution to the issue.

Approach to be Taken to Assist the Authority in Implementation of New GASB

GASB statement number 44, Economic Condition Reporting: The Statistical Section an
amendment of NCGA Statement 1, established and modified requirements related to the
supplementary information presented in a statistical section. This statement was effective for
statistical sections prepared for periods beginning after June 15, 2005 (September 30, 2007).
This Statement improved the understandability and usefulness of statistical section information
by addressing the comparability problems that have developed in practice and by adding
information from the new financial reporting model for state and local governments required by
GASB Statement 34. In order to clarify that the requirements are applicable to all types of state
and local governmental entities that prepare a statistical section, this Statement establishes the
objectives of the statistical section and the five categories of information it contains—financial
trends information, revenue capacity information, debt capacity information, demographic and
economic information, and operating information. The more specific requirements of this
Statement explain more clearly than prior standards the types of information that should be
presented in each category of statistical section information. For example, whereas NCGA
Statement 1 required a schedule of “miscellaneous statistics,” this Statement specifies that a
statistical section should include ten-year trends in three types of operating information—
government employment levels, operating statistics, and capital asset information. The most
significant new information added to the statistical section is the government-wide, accrual-
based information required by Statement 34. The statistical section will include ten-year trend
information about net assets and changes in net assets. The debt information presented in the
statistical section will also be more comprehensive due to the inclusion of information from the
government-wide financial statements and notes.




                                                    26
                        “Bringing Solutions and Prosperity to our Clients Since 1958”
                            APPROACH TO ENGAGEMENT

Approach to be Taken to Assist the Authority in Implementation of New GASB
Pronouncements (continued)

Finally, this Statement further improves the understandability and usefulness of statistical
section information by requiring governments to augment their schedules with notes regarding
sources, methodologies, and assumptions, and to provide narrative explanations of (a) the
objectives of statistical section information, (b) unfamiliar concepts, (c) relationships between
information in the statistical section and elsewhere in the financial report, and (d) atypical trends
and anomalous data that users would not otherwise understand. A review of the September 30,
2008 CAFR, shows that Town has implemented the statement.

GASB Statement number 43, Financial Reporting for Postemployment Benefit Plans Other Than
Pension Plans, is effective for the year ended September 30, 2009 if the Town had established
a trust plan for other post employment benefit plans. Upon review of the CAFR, As it does not
appear that the Town has established plan therefore GASB 43 would not apply to the Town and
would have no impact on the preparation of the CAFR.

GASB Statement number 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits Other Than Pensions, is effective for the year ended September 30,
2010. This Statement establishes standards for the measurement, recognition, and display of
OPEB expense/expenditures and related liabilities (assets), note disclosures, and, if applicable,
required supplementary information (RSI) in the financial reports of local governmental
employers. If the town offers health insurance to employees, there is an implicit rate subsidy in
the arrangement and GASB 45 applies to the Town. If this statement applies, the Town, or its
actuary, would need to calculate the implicit rate subsidy and the liability related to the subsidy.
The impact of this statement on the preparation of the CAFR includes several new disclosure
requirements along with a reconciling item between the government wide and full accrual
statements.

BHWL will be available to assist the Town in the implementation of these and future GASB
pronouncements.    The following are the GASB statements that will be effective for
September 30, 2009 and forward

GASBS 49 - Accounting and Financial Reporting for Pollution Remediation Obligations -
    effective for the year ended September 30, 2009.
GASBS 50 - Pension Disclosures-an amendment of GASB Statements No. 25 and No. 27 -
    effective for the year ended September 30, 2009.
GASBS 51 - Accounting and Financial Reporting for Intangible Assets - effective for the year
    ended September 30, 2010.
GASBS 53 - Accounting and Financial Reporting for Derivative Instruments - effective for the
    year ended September 30, 2010.
GASBS 54 - Fund Balance Reporting and Governmental Fund Type Definitions - effective for
the year ended September 30, 2011.




                                                   27
                       “Bringing Solutions and Prosperity to our Clients Since 1958”
                           APPROACH TO ENGAGEMENT

Work Paper Retention

We will retain all working papers for a minimum of five (5) years, unless notified in writing by the
Authority of the need to extend the retention period. We will make our working papers available for
examination to the Town of Loxahatchee Groves, U.S. Government Accountability Office (GAO),
auditors of entities of which the Town of Loxahatchee Groves is a sub-recipient of grant funds,
parties designated by the federal or state governments or by the Town of Loxahatchee Groves as
part of an audit quality review process.

Conclusion
In summary, we want to work with you in meeting present challenges and future opportunities.
This engagement requires technical expertise and seasoned experience on the part of those who
serve you. We have all of this and more. More importantly, we have the resources, energy,
ingenuity, and most of all, the commitment to accomplish the engagement objectives in the time
frame set forth in your request for proposal.

We thank you for considering our firm and we look forward to providing services to the Town of
Loxahatchee Groves, Florida. We trust you will find our responses to be complete; however,
should you have any questions regarding this proposal or desire any supplemental information,
please feel free to call us at (321) 757-2020.




                                                   28
                       “Bringing Solutions and Prosperity to our Clients Since 1958”
                                  PRICE PROPOSAL

Proposed Fee

Berman Hopkins Wright & LaHam, CPAs and Associates, LLP (“BHWL”) will perform
independent auditing services for the Town of Loxahatchee Groves, Florida for the
year ending September 30, 2009 (with two one-year renewal options).

                                            Audit          CAFR
                       Year                  Fee        Preparation          Total Cost
           September   30, 2009         $      14,000   $       8,000    $       22,000
           September   30, 2010                12,000           8,000            20,000
           September   30, 2011                12,000           8,000            20,000
           September   30, 2012                12,000           8,000            20,000
           September   30, 2013                12,000           8,000            20,000

Payment Schedule

Payments are due upon receipt of invoice. Interim invoices will be sent as the work
progresses approximately every month.

Expanded Scope of Services

If we are requested to expand the scope of our services, they will be billed at our
average hourly rate based on the level of staff required to perform the services
requested.

In connection with our audit, we will provide “consent and citation of expertise” and any
necessary comfort letters as requested. We are available to be engaged to perform
additional services as required. Additional services will be provided upon terms and
conditions mutually agreed upon by the District and Berman Hopkins.

Cost Control

Cost control is an essential part of any engagement. BHWL achieves this control in part by
holding mandatory planning meetings for all personnel involved in an engagement. This
allows everyone to become familiar with the client’s organization, accounting system, and
any other items specific to that entity. Once fieldwork has begun, it is the responsibility of
the manager to monitor their budget as well as his/her staff. Additionally, the partner-in-
charge of the engagement will periodically analyze the progress of the engagement related
to the number of hours devoted to that project. Any concerns are immediately
communicated to the manager and resolved. If additional work is required, this is relayed
immediately to the client’s contact person for further discussion.




                                               29
                        “Bringing Solutions and Prosperity to our Clients Since 1958”
                                  OFFEROR’S
                           QUALIFICATION STATEMENT


3b     Name, address and ownership units of all partners:

John R. Hopkins      8035 Spyglass Hill Road
                     Melbourne, FL 32940
                     29.69% ownership

James S. LaHam,      8035 Spyglass Hill Road
                     Melbourne, FL 32940
                     20.72% ownership

Ross A. Whitley      8035 Spyglass Hill Road
                     Melbourne, FL 32940
                     19% ownership

Phillip Hayes        8035 Spyglass Hill Road
                     Melbourne, FL 32940
                     5% ownership

Brian Nemeroff       8035 Spyglass Hill Road
                     Melbourne, FL 32940
                     5% ownership

Steven Bierbrunner   8035 Spyglass Hill Road
                     Melbourne, FL 32940
                     .53% ownership

Michael Durante      8035 Spyglass Hill Road
                     Melbourne, FL 32940
                     .53% ownership

Ed Moss              480 N. Orlando Ave., Suite 218
                     Winter Park, FL 32789
                     19% ownership

Joe Krusick          480 N. Orlando Ave., Suite 218
                     Winter Park, FL 32789
                     .53% ownership
7.   Indicate registration, license numbers or certificate numbers for the businesses or
     professions which are the subject of this RFP. Please attach certificate of
     competency and/or state registration.

				
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