Broward County Commission Regular Meeting
Director's Name: Bertha Henry
Department: County Administration Division: Cultural Division
Information
Requested Action
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MOTON TO APPROVE First Amendment to the Audit Services Agreement Between Broward County ("County"), City of Fort Lauderdale ("City"), the Performing Arts Center Authority ("PACA"), and Alberni, Caballero & Fierman, LLP (“ACF”) for audit services of PACA's records ("Audit Agreement"), to extend the term of the Audit Services Agreement for an additional year; reduce the payment for Fiscal Year 2020 to $36,701; provide for payment of audit services for Fiscal Year 2021 in an amount not-to-exceed $36,701; and authorize the Mayor and Clerk to execute same. (Commission District 7)
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Why Action is Necessary
Board County Board of County Commissioners (Board) approval is required to extend the Agreement.
What Action Accomplishes
Provides approval for the execution of the First Amendment to the existing agreement.
Is this Action Goal Related
Yes
Previous Action Taken
On August 16, 2016 (Item No. 47), the Board approved the Audit Services Agreement between the County, City, PACA, and Alberni, Caballero & Fierman, LLP, for audit services for PACA for a five-year term beginning Fiscal Year 2016 through Fiscal Year 2020. The Audit Services Agreement states that County and City each pay half of the audit fees for PACA. The remaining audit fees for which County is responsible for is $19,317 for Fiscal Year 2020. The Audit Services Agreement expires on February 28, 2021.
On November 10, 2020 (Item No. 53), the Board approved a Tri-Party Grant Agreement among County, City and PACA, for the period of October 1, 2020 through September 30, 2021, to provide funding for PACA’s operations in the amount of $950,000, in addition to in-kind services of up to 500 hours of legal services. The Agreement states that within 150 days after February 28, 2021, the parties will enter into a separate agreement for independent auditing services with PACA’s current independent auditor (or another auditor agreeable to the parties), which is separately funded and which funds are not part of this Agreement.
Summary Explanation/Background
CULTURAL DIVISION RECOMMENDS APPROVAL OF THE ABOVE MOTION.
The current Audit Services Agreement terminates on February 28, 2021, after completion of the Fiscal Year 2020 audit. The Audit Committee would normally go through a new procurement process to engage a firm for future years in March 2021, in order to have a new audit agreement in place for the Fiscal Year 2021 audit cycle; however, due to COVID-19 and the impact on budgets, ACF has reached out to offer a 5% discounted fee for this final year of engagement if the other parties agreed to an extension of the existing agreement.
The proposed First Amendment to the Audit Services Agreement will extend the contract term for one additional year to February 28, 2022 and reduce the current year’s fee by 5% to $36,701 and hold that reduced fee in place for the additional year. Additionally, the First Amendment will update the Auditor’s name to reflect a partnership name change that occurred in 2018.
The Fiscal Year 2020 Audit Services Fee in the existing Agreement is $38,633, with the County and the City each paying half. Under the proposed First Amendment to the Audit Services Agreement, the County and the City are still responsible for each paying one-half of the annual fee for Fiscal Year 2020 and Fiscal Year 2021. The County’s obligation is $18,351 for Fiscal Year 2020 and $18,351 for Fiscal Year 2021.
The proposed First Amendment was approved by ACF on January 11, 2021 and by PACA on January 14, 2021 and is subject to the City’s Commission approval on January 21, 2020. The County Attorney's Office has approved the First Amendment as to form.
Source of Additional Information
Phillip Dunlap, Director, Cultural Division (954) 357-7456
Fiscal Impact
Fiscal Impact/Cost Summary
The Audit Services Agreement requires the County and the City to equally share the cost of audits for Fiscal Year 2020 and Fiscal Year 2021.
The First Amendment will reduce the current year’s fee by 5% and hold that reduced fee in place for the additional year, making the County’s contribution as $18,351 in Fiscal Year 2020 and $18,351 in Fiscal Year 2021.
Funding for the Fiscal Year 2020 audit has been included in the Fiscal Year 2021 Recommended Budget.