Item 8G
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CITY OF ATLANTIC BEACH
~„ CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: Selection of Audit Firm
AGENDA ITEM #8G
JUNE 28, 2004
SUBMITTED BY: Audit Selection Committee: City Commissioner Paul Parson, City Manager, Jim
Hanson and Finance Director, Nelson Van Liere
DATE: June 19, 2004
BACKGROUND: The City Commission authorized the staff to advertise and take proposals for a
new audit firm after the previous firm was unable to continue to provide services
at the contracted amount. Staffthen recommended to the City Commission that
the City seek proposals for new auditors rather than seek approval for a change
order to the James Moore & Company four-year contract of an additional $10,000
per year.
The City advertised for proposals in May and received four proposals. The Audit
Selection Committee met and discussed the proposals with regard to the
evaluation criteria including mandatory criteria, technical qualifications, audit
approach including staff and price. The committee selected two of the firms to
~* interview, as they were clearly superior. Representatives from Davis Monk &
Co., and Purvis Gray & Co. were invited to discuss their proposals with the
committee giving us a chance to meet the staff that would be performing the
""" audit. Both firms interviewed very well. The committee then scored the
proposals using the predetermined criteria and related weights. The evaluation for
the final three firms is attached.
The proposals were evaluated in accordance with the City's Audit Selection
Procedures and the Request for Proposal guidelines. Purvis Gray & Co. received
the highest overall ranking and therefore receives the committee's
recommendation.
BUDGET: This expenditure crosses fiscal years due to the interim work to be performed in
the summer. There are sufficient funds in the Finance Department budget for this
years cost and the remainder will be included in subsequent year's budget
recommendations. The Purvis, Gray & Company proposal is approximately
$5,000 less than a renewed James Moore & Company request per year.
RECOMMENDATION: Authorize the City Manager to enter into a contract for audit services with
Purvis, Gray & Company for afour-year period totaling $158,000 plus related
~ services costs if needed per the Request for Proposal specifications with an option
to renew for an additional two years if mutually agreed upon.
~„ ATTACHMENT: Evaluation Tabulation
CITY MANAGER APPROV
AGENDA ITEM #8G
JUNE 28, 2004
City of Atlantic Beach
Auditor Selection Evaluation Tabulation
FY 2003 - 04
Evaluation Criteria Davis, Monk
& Com an James, Moore
& Company Purvis, Gray
&Com an
Mandato Elements
a. Independent and Licensed in
Florida
Z'
Y
Y
b. Adequate Continued Professional
Education
Y
Y
Y
c. No Conflict of Interest Y Y Y
d. Peer Review Y Y Y
e. Followed Instructions Y Y Y
Meets Mandato Elements Y Y Y
Technical Qualifications
A. Ex ertise and Ex erience
1. Past Ex erience (10 ts) 8 6 10
2 Staff and Resources 10 ts) 8 6 10
3. Volume of Cit Work 10 ts) 10 10 10
4 Reference Res onses (10 ts) 10 8 10
Total Points 40 is 36 30 40
B. Audit A roach
1. Pro osed Staffin 10 ts) 9 7 10
2. # Hours b Se ent (10 ts) 9 6 10
Total Estimated Hours 400 412 435
3. Geo a hic Location 5 ts) 5 5 5
4. Sam lin Techni ues 5 is 5 5 5
5. Anal ical Procedures 5 is 5 5 5
Total Points (35 ts) 33 28 35
Cost Pro osal
2004 $34,000 $43,250 $38,000
2005 $34,000 $42,906 $39,000
2006 $35,400 $44,865 $40,000
2007 $36,100 $47,010 $41,000
Total over four ears $139,500 $178,031 $158,000
Total Points * 25 is 25 20 22
Avera e Cost er hour ote Onl) $87.19 $108.03 $90.80
Overall Score 94 78 97
* Formula for cost proposal ranking is Lowest of all cost proposals /respective cost proposal
X 25 points. Example: ($120,300/$180,350) X 25 = 16.75 or 17 rounded
~w
City of Atlantic Beach
Audit Selection Committee
Minutes from June 15, 2004 meeting.
Meeting began at 2:15p.m.
Present at the meeting:
City Commissioner Paul Parson
City Manager, Jim Hanson
Finance Director, Nelson Van Liere, CPA
The committee discussed the following points:
AGENDA ITEM #8G
JUNE 28, 2004
• Confirmed that all proposals were reviewed.
• The Finance Director distributed evaluation forms. The information provided included
some summary information from the proposals.
• Nelson Van Liere reported that references for all proposals were contacted by the Finance
staff and were all good.
• Based on the initial review of proposals, a decision was made to interview two of the
proposers.
Davis Monk & Co.
Purvis Gray & Co.
• The remaining two would be optional interviews depending on how the top two choices
went.
• Dufresne & Associates was not selected for an interview due to low number of municipal
audits, small number of overall staff and price.
• James Moore & Co. is to be an alternate due to our recent experience with the firm over
pricing and firm management style. It was decided that they should be the third firm
presented to the City Commission, as the selection committee procedures require.
Meeting adjourned at 3:OOp.m.
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City of Atlantic Beach
Audit Selection Committee
Minutes from the June 17, 2004 meeting.
Meeting began at 2:OOp.m.
Present at the meeting:
City Commissioner Paul Parson
City Manager, Jim Hanson
Finance Director, Nelson Van Liere, CPA
AGENDA ITEM #8G
JUNE 28, 2004
Mr. Alan Nast, CPA, PA and Tina Robinson, CPA were introduced and were allowed ample time to
describe themselves and their firm's ability to provide audit services for the City
of Atlantic Beach. Questions were asked regarding firm qualifications, staffing
and procedures as well as availability. The interview lasted until 3:OOp.m.
After the interview, the committee discussed the various highpoints. One notable
issue with the Davis Monk fum was the confusion surrounding the team that
would actually be performing the audit. Although it was clear that Tina Robinson
would be a part of that team, the primary Steven Catel was not present. Mr. Catel
was assigned to this team after the member that was to run our engagement that
was included in the proposal was actually never hired by the firm.
!~"" Highpoint was that Mr. Nast is very well qualified and he expressed his
persistence in trying to get our business over the years and the main staff person
on the engagement has a number of years experience with the City of Palatka and
~" seemed to be quite capable of performing the required tasks. The committee
discussed the depth of the staff as an issue of concern.
AT 3:OOp.m. Purvis Gray &Co was provided the same opportunity to describe their firm and
their ability to deliver a quality product to the City. Mr. Ron Whitesides CPA and
Mr. Martin Cass, represented the firm and are both to be ever present during the
engagement. A third staff member would also be in the field with them. The
interview lasted about an hour.
~"" The committee was assured that the partner in charge of the audit would be
present with his team during fieldwork and available at all times. The audit team
has been together for years including prior audits of the City of Atlantic Beach.
'"~ The fum has extensive resources and depth of staff. They are committed to the
fee quoted as they have always been in the past.
After the interview, the committee remained and discussed the interview. The
committee discussed the issue of timing regarding the selection of Purvis, Gray
and Company after atwo-year period with James Moore & Company. All
members agreed that the objective of rotating auditors had been met and choosing
Purvis, Gray & Company should not be an issue.
AGENDA ITED'I #8G
JUNE 28, 2004
Page 2 of 2
~, Audit Selection Committee minutes
6/17/04
The committee then scored the firms using the evaluation tabulation sheet and
Purvis Gray did in fact rank the highest. We then agreed that the method and
selection was fair and agreed to propose to the City Commission a
recommendation to award a contract to Purvis, Gay & Co.
Meeting Adjourned S:OSp.m.
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