Fort Walton Beach Council agenda — 10-12-2010 Regular — reading text

most recent external peer review report and any letter of comment, and any subsequent peer review reports and letters of comment received during the period of the contract. Our 2008 peer review report was provided in our original proposal, referenced above. Honorable Mayor and City Council Members City of Fort Walton Beach, Florida October 1, 2010 Page nine We appreciate the opportunity to be of service to the City of Fort Walton Beach, Florida and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Sincerely, O' SULLIVAN CREEL, LLP Certified Public Accountants & Consultants Angelll. Balent, CPA Confirmed on behalf ofthe City ofFort Walton Beach, Florida: Robert Mearns, City Manager  BEST PRACTICE Audit Procurement ( 1996 and 2002) Backeround. The Government Finance Officers Association (GFOA) has long recommended that state and local governmental entities obtain independent audits of their financial statements performed in accordance with the appropriate professional auditing standards. Properly performed audits play a vital role in the public sector by helping to preserve the integrity of the public finance functions and by maintaining citizens' confidence in their elected leaders. Recommendation. GFOA makes the following recommendations regarding the selection of auditing services: The scope of the independent audit should encompass not only the fair presentation of the basic financial statements, but also the fair presentation of the financial statements of individual funds and component units. The cost of extending full audit coverage to the financial statements of individual funds and component units can be justified by the additional degree of assurance provided. Nevertheless, the selection of the appropriate scope of the independent audit ultimately remains a matter of professional judgment. Accordingly, those responsible for securing independent audits should make their decision concerning the appropriate scope of the audit engagement based upon their particular government' s specific needs and circumstances, consistent with applicable legal requirements. Governmental entities should require in their audit contracts that the auditors of their financial statements conform to the independence standard promulgated in the General Accounting Office' s Government Auditing Standards even for audit engagements that are not otherwise subject to generally accepted government auditing standards. Governmental entities should enter into multiyear agreements of at least five years in duration when obtaining the services of independent auditors. Such multiyear agreements can take a variety of different forms ( e. g., a series of single -year contracts), consistent with applicable legal requirements. Such agreements allow for greater continuity and help to minimize the potential for disruption in connection with the independent audit. Multiyear agreements can also help to reduce audit costs by allowing auditors to recover certain " startup" costs over several years, rather than over a single year. Governmental entities should undertake a full -scale competitive process for the selection of independent auditors at the end of the term of each audit contract, consistent with applicable legal requirements. Ideally, auditor independence would be enhanced by a policy requiring that the independent auditor be replaced at the end of the audit contract, as is often the case in the private sector. Unfortunately, the frequent lack of competition among audit firms fully qualified to perform public- sector audits could make a policy of mandatory auditor rotation counterproductive. In such cases, it is recommended that a governmental entity actively seek the participation of all qualified firms, including the current auditors, assuming that the past performance of the current auditors has proven satisfactory. Except in cases where a multiyear agreement has taken the form of a series of single -year contracts, a contractual provision for the automatic renewal of the audit contract (e. g., an automatic second term for the auditor upon satisfactory performance) is inconsistent with this recommendation.  Professional standards allow independent auditors to perform certain types of nonaudit services for their audit clients. Any significant nonaudit services should always be approved in advance by a governmental entity' s audit committee. Furthermore, governmental entities should routinely explore the possibility of alternative service providers before making a decision to engage their independent auditors to perform significant nonaudit services. The audit procurement process should be structured so that the principal factor in the selection of an independent auditor is the auditor' s ability to perform a quality audit. In no case should price be allowed to serve as the sole criterion for the selection of an independent auditor. References CPA Audit Quality: A Frameworkfor Procuring Audit Services, General Accounting Office, August 1987. Audit Management Handbook, Stephen J. Gauthier, GFOA, 1989. An Elected Official' s Guide to Auditing, Stephen J. Gauthier, GFOA, 1992. Governmental Accounting, Auditing and Financial Reporting (GAAFR), Stephen J. Gauthier, GFOA. Model Audit RFP Diskette, GFOA. Approved by the GFOA' s Executive Board, October 25, 2002  CITY COUNCIL MEETING October 12, 2010 Consent Agenda Cox Business Services Synopsis: Staffrequests authorization for the City Manager to sign the Cox Business Services one year contractfor internet service Agenda Item Number: 83  CITY OF FORT WALTON BEACH MEMORANDUM Information Technology Division To: Robert T. Mearns, City Manager From: David Jenzen, IT Director Date: September 29, 2010 Subject: Request to approve Cox Business Services contract. 1. BACKGROUND: 1. 1 The City of Fort Walton Beach has contracted with Cox Business Services as its Internet service provider for the last 9 years. The City uses the Internet service to provide services to the Citizens as well as City staff. The Internet connections are used to run the City' s website, e- mail, SunGard HTE software, connectivity to the Police Department patrol cars and several other services. 2. DISCUSSION: 2. 1 The attached contracts are required to renew the City' s service agreements with Cox Business Services to provide Internet Services to the City for fiscal year 2010 - 2011. 3. FINANCIAL INFORMATION: 3. 1 I have negotiated with Cox Business Service to receive the best pricing possible. By accepting this new contract, the City will save $ 4, 800 this fiscal year compared to last fiscal year. We have budgeted $ 53, 711 for this expense in the City' s 2010 -2011 budget. 4. RECOMMENDATION: 4. 1 Pursuant to the City of Fort Walton Beach Code of Ordinances, Volume II, Chapter 4, Section 4. 01. Paragraph 4.01. 025 and the Purchasing Policies and Procedures, staff requests City Council authorization the City Manager to sign the Cox Business Services contracts. 5. ATTACHMENTS: 5. 1 Cox Business Services fiber optic Internet contract - City of FWB Fiber.pdf 5. 2 Cox Business Services cable modem Internet contract - City of FWB Cable Modems.pdf 6. SIGNATURE BLOCK: 6. 1 Submitted B Y" Ow`""7B1. 9 -29 -2010 David Jenzen, IT Director 6. 2 Reviewed and Concur: 9 -29 -2010 Sylvia Hanks, Administrative Services 6. 4 Reviewed and Concur: Brandy Wunker, Finance Director 6. 5 Reviewed for Agenda: 10/ 4/ 2010 Robert T. Mearns City Manager  J. co sinese Commercial Services Agreement 1 Contract Number: Rep: Matt King Date: 9/ 28/ 2010 Address: 3405 McLemore Dr, Pensacola, FL 32514 Account Number: Phone: 850 -857 -4641 Return Fax: 877 -873 -7599 Legal Company Name: City of Fort Walton Beach Federal Tax ID Number: Service Street Address: Authorized Customer Name & Title: Dave Jenzen —IT Director City/State/Zip: Business Phone Number: 850 -833 -9619 Business Fax Number: Billing Street Address (if different from service address) Additional Contact Name/Title/Phone: Bundle Type: E -mail Address: Cox shall provide the following Services and equipment and Customer acgrees to pay the fees and c arcies set forth below: Total Service Charges Unit Term Service and Equipment Description