15-Scope of Services GEN2132533P1.pdf

Scope of Services External Audit Services

The scope of services shall include, but not be limited to the following:

I. PURPOSE/OVERVIEW

The purpose of this solicitation is to obtain the services of an Independent Certified Public Accounting Firm (Auditor) to perform annual financial and compliance audits and render opinions on the financial statements and accounts of Broward County, Florida (County), its Constitutional Officers, and its Component Units.

II. REQUIREMENTS

A. Pursuant to the County’s Administrative Code, Chapter 18.61 the annual audit of the accounts and financial transactions of the County, as required by the County Charter, shall be performed by an Independent Certified Public Accountant, recommended to and selected by the Board in accordance with Section 218.391, Florida Statutes.

B. Pursuant to County Charter, Section 2.11 and County Administrative Code Chapter 18.61, the contract administrator for the external audit services shall be the County Auditor.

C. The Auditor must be duly licensed to practice under Chapter 473, Florida Statutes. The partner in charge of the engagement must be a licensed Certified Public Accountant in the State of Florida.

D. The Scope of Services shall apply to each fiscal year audited. The fiscal years to be audited will be the years 2027, 2028, 2029, 2030, and 2031.

E. Auditor shall be knowledgeable of and proficient in applying the compliance requirements of all applicable federal, state, and county rules and regulations, ordinances, codes, charters, and bond covenants. Rules and regulations that may pertain to the work required pursuant to the Agreement resulting from this solicitation, include, but shall not be limited to, the following:

1. Sections 11.45 and 218.39, Florida Statutes

2. Chapter 10, Rules of the Auditor General (including Chapter 10.550 – Local Governmental Entity Audits)

3. Title 31 of the United States Code, Sections 7501 – 7507 (Federal Single Audit Act)

4. Title 2 Code of Federal Regulations (2 CFR), Part 200, – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), including Subpart F - Audit Requirements

5. Section 215.97, Florida Statutes (Florida Single Audit Act)

6. Auditing standards generally accepted in the United States of America (GAAS), promulgated by the American Institute of Certified Public Accountants (AICPA)

7. AICPA Audit and Accounting Guide: State and Local Governments

8. Governmental Auditing Standards issued by the Comptroller General of the United States

9. U.S. generally accepted accounting principles (GAAP) for state and local governments promulgated by the Governmental Accounting Standards Board (GASB)

10. Federal and state grant contract requirements

11. County Charter

12. Code of Ordinances for Broward County, FL

13. Applicable bond covenants

F. The audits shall be performed in accordance with the most current revisions of the foregoing standards and regulations at the time of the audit.

G. Incumbent prime vendor’s prime partners and managers previously involved in provided services under the current contract (RFP No. GEN2123625P1) may not be involved in any capacity in the proposed services to be provided.

H. Assigned Auditor personnel performing the services must possess necessary professional and academic qualifications, licensures, and relevant experience on previous similar projects, commensurate with their role, and must maintain required continuing education requirements, as set forth, in Government Auditing Standards issued by the Comptroller General of the United States.

I. . All subcontractor (s) must be qualified for their assigned work and agree to be bound by all terms, conditions, and professional standards applicable to this engagement. The Prime vendor remains solely responsible for supervision, quality, independence, and performance of the entire engagement; deficiencies by any subcontractor (s) do not relieve the Prime of its obligations.

J. Auditor will ensure that the persons responsible for Auditor’s performance of the Services (“Key

Personnel”) are appropriately trained and experienced and have adequate time and resources to perform the Services. The Key Personnel shall be Partners, Managers, and In-Charge Auditors.

III. GENERAL INFORMATION AND BACKGROUND

A. The County is a political subdivision of the State of Florida. It is guided by an elected nine-member Board of County Commissioners (Board), which is governed by Florida Statutes and the provisions of its Charter (the “Charter”) as amended. Under the Charter, the County functions as a home rule government consistent with the provisions of the Florida Constitution and the general laws of the State. The Board is the legislative and policy-making body of the County. Each of the nine Commissioners is elected from a separate district. Annually, the Board elects a Mayor who serves as its presiding officer. Elections of Commissioners are held every two years for staggered four-year terms. The Board appoints the County Administrator to act as the County’s chief executive officer. The Administrator implements policies of the Board, provides organizational leadership, and directs business and administrative procedures. The County provides a broad range of services, including maintenance of streets, highways, bridges and traffic signals, parks, libraries, airports, a seaport, a convention center, water and sewer systems, and other community and human services.

B. In addition, there are five independently elected Constitutional Officers as established by Article VIII, Section 1 (d), Florida Constitution and are each considered, as provided by Chapter 218, Florida Statutes, separate entities for financial reporting purposes each requiring a separate audited financial statement:

1. Clerk of the Circuit and County Courts (Clerk)

2. Property Appraiser

3. Sheriff

4. Supervisor of Elections

5. Tax Collector

C. Additionally, there are two Discretely Presented Component Units:

1. Housing Finance Authority (HFA); and

2. Clerk of the Circuit and County Courts (Clerk) (discussed above)

D. The County, Property Appraiser, Sheriff, Tax Collector, and the Supervisor of Elections currently comprise the primary government. The Clerk and HFA are currently reflected as discretely presented component units.

E. The Board and Constitutional Officers are governed by state statutes, rules and regulations. The Board has broad financial responsibilities, including the approval of the annual budget, which for the 2025-2026 fiscal year exceeded $8 billion.

F. Financial and budget reports for the County are available on the following web sites:

www.broward.org\accounting and www.broward.org\budget.

http://www.broward.org\accounting http://www.broward.org\budget

G. Additional Information:

1. The County, Constitutional Officers, and Component Units of the County prepare their own financial statements and, as applicable, notes to the financial statements, the introductory section, statistical sections and the required supplementary information sections.

2. The County has not established an Other Post Employment Benefit (OPEB) trust in accordance with GASB criteria. The County reports OPEB in accordance with GASB Statement No. 75 as amended by subsequent standards and finances benefits on a pay-as-you-go basis.

3. The arbitrage liability is calculated by a CPA firm under contract with the County. Calculations are updated annually for bond issues where this would be required.

4. Cash is pooled for all County agencies, and the Finance and Administrative Services Department manages an internal investment pool for all County funds not held by a Trustee Bank (e.g. Debt Proceeds and Hotel Operating Fund Revenues).

5. All cash and investment accounts are reconciled on a monthly basis. Investments are adjusted to market value at the end of the fiscal year at a minimum.

6. There are approximately 75 cash collection points. Some agencies contract with a third party for their cash pickup and delivery.

7. The records for each cash collection point are maintained at the agencies, and the Finance and Administrative Services Department (FASD) Treasury staff reconciles deposit entries made into the financial system with bank deposits.

8. Individual agencies that administer grants maintain the detail records for the grants and provide required reporting to grantor agencies. The County does have a grant management function but it primarily coordinates grant applications and provides assistance to the administering agencies.

9. The County operates an internal investment pool that held approximately $5.8 billion as of September 30, 2025. County investments are made in accordance with the County’s Investment Policy, available at the link below:

https://library.municode.com/fl/broward_county/codes/administrative_code?

nodeId=CH22OTOPPOFIADSE_PTXIIIINPOBRCO

The County also finances portions of its capital projects through public debt issuances and private placement debt. The County’s Capital Expenditure and Debt Financing Policy is available at:

https://library.municode.com/fl/broward_county/codes/administrative_code?

nodeId=CH22OTOPPOFIADSE_EX22.D_FIPOCAEXDEFI

10. The County’s Annual Comprehensive Financial Report (ACFR) and major enterprise fund financial statements are found under “Financial Reports” at https://www.broward.org/Accounting/

H. Information Systems:

1. County uses PeopleSoft Enterprise Resources Planning (ERP) for its financial system.

2. There are several standalone systems that are also part of the County’s system environment and that either interface with PeopleSoft or provide data that is inputted into PeopleSoft.

These include the utility billing system and Port billing system. The standalone enterprise fund billing systems do not have automated application interfaces to PeopleSoft, with the exception of the Airport’s ground transportation provider fee collection system.

3. PeopleSoft ERP and Kronos Time and Attendance systems are hosted externally. The systems are maintained by a vendor and in-house resources working together. Customizations have been made to the systems, and they have been developed by the vendor working with the in-house resources.

4. Each major system has its own security process. Users are granted access according to their particular job function and need for access (i.e. read only, enter documents, approve documents would all be separate access considerations).

5. The constitutional offices maintain separate treasury and accounting systems. The Broward County Hotel Enterprise Fund gross operating revenues and expenses are maintained in separate system maintained by the Hotel Management Company, IV. AUDIT PROCEDURES AND REPORTING

A. County Financial Statements

1. The County’s financial statements are prepared in accordance with U.S. generally accepted accounting principles (GAAP) for state and local governments promulgated by the Governmental Accounting Standards Board (GASB). While subject to change in any fiscal year, the County financial statements are expected to include the following opinion units, consistent with the GASB financial reporting model (as amended and codified) and the AICPA Audit and Accounting Guide: State and Local Governments:

a. Governmental Activities (government-wide)

b. Business-type Activities (government-wide) https://www.broward.org/Accounting/

c. Each major governmental fund as determined annually under GASB criteria; For example, as of September 30, 2025, and subject to change each fiscal year:

i. General Fund

ii. Sheriff Contractual Services Fund (special revenue fund)

iii. Transportation Surtax Fund (special revenue fund)

iv. Transportation Surtax Capital Fund (capital fund)

v. Capital Outlay Reserve Fund (capital fund)

d. Each major enterprise fund as determined annually under GASB criteria; For example, as of September 30, 2025, and subject to change each fiscal year:

i. Aviation Fund (enterprise fund)

ii. Port Everglades Fund (enterprise fund)

iii. Water and Wastewater Fund (enterprise fund)

iv. Hotel Enterprise Fund (enterprise fund - beginning in 2026)

e. Aggregate Remaining Fund Information (internal service funds, agency funds, nonmajor enterprise funds, and nonmajor governmental funds)

f. Fiduciary funds

g. Discretely Presented Component Units

2. The statements to be audited will be prepared by the County’s Finance and Administrative Services Department, appropriate Constitutional Officer, or Component Unit. Auditor shall submit any proposed adjusting journal entries to the Finance and Administrative Services Department, appropriate Constitutional Officer, or Component Unit for approval in a timely manner.

3. County understands and agrees that the underlying books and records of accounts must be properly closed as required by Florida Statutes to maintain the independence of Auditor and to allow Auditor reasonable time to meet the completion deadlines.

B. Review of Internal Control

Auditor shall evaluate the system of internal control to assess the extent to which it can be relied upon to ensure accurate information, compliance with laws and regulations, and to provide for efficient and effective operations. The review of internal control shall include:

1. Review of processes, which is primarily obtaining an understanding of the organization and its prescribed procedures to serve as the basis for tests of compliance and evaluation of the internal controls.

2. Test of controls, which are made to provide reasonable assurance that accounting control procedures are being applied as prescribed.

C. Information Systems Controls Review

A review of information technology general controls and application controls relevant to County’s internal control over financial reporting, based on an evaluation of significant accounts, disclosures, and relevant assertions.

D. Audit Reports

The audit reports shall include the Auditor’s opinion and any and all audited financial statements and management letters. Each audit report shall comply with the following:

1. Audit Report - County

This report shall contain an opinion for each opinion unit, consistent with the GASB financial reporting model (as amended and codified) and the AICPA Audit and Accounting Guide: State and Local Governments, comprising the basic financial statements of the County, Constitutional Officers, and Component Units. Auditor shall provide one signed original opinion letter.

2. Audit Report – Surtax, Aviation, Port, WWS, and Hotel Enterprise Fund

A separate report containing an opinion shall be provided for each Fund or Program.

3. Report on Federal and State Grants

The scope of the examination shall include grant audits required by State and Federal authorities, including, but not limited to, Section 215.97, Florida Statutes (the Florida Single Audit Act), Title 2 of the Code of Federal Regulations, Part 200 – Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Title 31 of the United States Code, Sections 7501 – 7507 (the Federal Single Audit Act), and the Rules of the Auditor General. Auditor shall provide 15 bound copies of the report.

4. Reports in Accordance with Government Auditing Standards and Chapter 10.550, Rules of the Auditor General:

a. Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.

b. Independent Accountant’s Report on compliance with Section 218.415, Florida Statutes.

c. Independent Accountant’s Report on compliance with Section 365.172 and 365.173, Florida Statutes.

5. Management Letters

a. Auditor shall prepare management letters for each audited entity in accordance with the Rules of the Auditor General which shall contain all audit findings and, at a minimum, address each of the following:

i. Whether errors or irregularities reported in the preceding audit report have been corrected;

ii. Whether recommendations made in the preceding audit report have been implemented;

iii. Recommendations to improve management, accounting procedures, internal controls, and increase efficiency;

iv. Violation of any laws, rules, and regulations discovered within the scope of the audit;

v. Illegal expenditures discovered within the scope of the audit;

vi. Improper or inadequate accounting procedures;

vii. Failure to properly record financial transactions; and

viii. Other inaccuracies, irregularities, shortages, and defalcations discovered by the Auditor.

b. The draft management letter for the County and each entity that has a separately issued financial statement shall be discussed with the County Administrator, the Chief Financial Officer (Director of Finance and Administrative Services Department), Director of Accounting, and County Auditor before issuance in final form. The draft management letter for each Constitutional Officer and each Component Unit shall be discussed with their designated representative and Contract Administrator before issuance in final form.

The final management letters for the County, Enterprise Funds, Constitutional Officers, Surtax Program, and Component Units shall be presented to the Board.

E. Other Considerations

1. Except as may be otherwise required by Federal or State Grantors, all grant audits shall be performed within the scope and parameters of the Federal Single Audit Act and the Rules of the Auditor General.

2. In addition to the audits identified above, there are a number of audit requirements of the County’s various bonded debt obligations. It is the express desire of the Board and the Constitutional Officers that duplication of effort during the audit engagements be avoided and that all audit requirements be encompassed by the County-wide audit to the fullest extent possible.

3. The audits described herein shall include procedures designed to detect errors and irregularities which would have a material effect on the financial statements. To the extent that the Auditor detects material errors or irregularities, Auditor shall promptly report such matters, in writing, to the County Auditor, County Administrator, appropriate Constitutional Officer, or higher level Officer, if appropriate.

4. County expressly permits Auditor to consult with the Auditor General of the State of Florida and the federally designated “Cognizant Agency” on any matter pertaining to the audit which in the judgment of the Auditor would be important to the conduct of its examination or its report on the results thereof.

5. Financial reporting divisions and offices for the following major funds are separate and apart from the County’s Finance and Administrative Services Department:

a. Aviation Fund (enterprise fund)

b. Port Everglades Fund (enterprise fund)

c. Water and Wastewater Fund (enterprise fund)

d. Hotel Enterprise Fund operating account

Certain financial reporting processes and record keeping are performed separately by these offices. In addition, the Constitutional Officers and Component Units may maintain their own, independent accounting system and records.

F. Separate Audit Reports to be Provided

In addition to the audit of the County’s financial statements and incorporation of financial statements audited by other Auditors (if applicable), Auditor shall issue separate audit reports for the following:

1. Constitutional Officers

a. Sheriff’s Office –1 electronic, print-ready copy.

b. Supervisor of Elections – 1 electronic, print-ready copy.

c. Property Appraiser – 1 electronic, print-ready copy.

d. Clerk – 1 electronic, print-ready copy.

e. Tax Collector – 1 electronic, print-ready copy.

2. Discretely Presented Component Units

a. Housing Finance Authority (HFA)– 1 electronic, print-ready copy.

b. Clerk – see above.

3. Special Reports

a. Broward County, Florida Statement of County Funded Court-Related Functions, Section 29.0085, Florida Statutes. Examination of Arithmetical Accuracy and Compliance of Sections 29.008 and 29.0085, Florida Statutes by Independent Auditors – 1 electronic, print-ready copy.

b. Broward County Aviation Department Reports on Passenger Facility Charge Program in Accordance with Passenger Facility Audit Guide for Public Agencies – 1 electronic, print-ready copy.

c. Independent Accountants’ Report on Applying Agreed-Upon Procedures on the Federal Funding Allocation Statistics form (FFA-10 form) of the Transit Division of Broward County, Florida’s annual National Transit Database (NTD) 1 electronic, print-ready copy.

d. North Regional Transmission, Treatment and Disposal System of Broward County, Florida Schedules of Large User Reserve Capacity and Debt Service Allocation and Schedule of Large User Annual Adjustments – 1 electronic, print-ready copy.

e. Regional Raw Water System of Broward County, Florida Schedule of Large User Annual Adjustments – 1 electronic, print-ready copy.

f. Broward County, Florida Landfill Management Escrow Account Schedule of Activity – 1 electronic, print-ready copy.

4. Surtax and Enterprise Fund Financial Statements

a. Transportation Surtax – 1 electronic, print-ready copy.

b. Aviation Department (Aviation) – 1 electronic, print-ready copy.

c. Port Everglades Department (Port) – 1 electronic, print-ready copy.

d. Water and Wastewater Services Division (WWS) – 1 electronic, print-ready copy

e. Hotel Enterprise Fund – 1 electronic, print-ready copy

V. SCHEDULE

A. Field Work

Field work should be scheduled in a manner that will allow for completion and submittal of final reports in accordance with the deadline dates. The interim audit work for the County typically starts in May and continues through July. Interim Audit work for Port, Aviation, and WWS typically occurs in July through August. Year-end audit work typically begins in late November and continues through March. The HFA typically does not require interim audit work.

Final trial balances for audit for the County, Port, Aviation, Hotel and Water Wastewater Services (WWS), HFA, and all the Constitutional Officers will be available at the time the respective final draft financial statements are submitted to the auditor, which is typically in late January after the Florida Retirement System issues the reports needed for completion.

B. Audit Report Deadline and Distribution:

1. Report deadlines for each year are as follows:

Report Deadline

a. Audit Report – County March 15

b. Audit Report – Surtax, Aviation, Port, Hotel, and WWS February 15

c. Report on Federal and State Grants May 31

d. Auditor General’s Reports in Accordance with Government Auditing Standards and Chapter 10.550, Rules and Auditor General

March 15

e. Final Management Letter with Management Reponses – County March 15

f. Final Management Letter – Surtax, Aviation, Port and WWS February 15

g. Audit Report – Sheriff’s Office January 15

h. Audit Report – Supervisor of Elections January 15

i. Audit Report – Property Appraiser January 15

j. Audit Report – Clerk January 15

Report Deadline

k. Audit Report – Tax Collector January 15

l. Audit Report – Housing Finance Authority February 15

m. Audit Report for Hotel Enterprise Fund February 15

n. Broward County, Florida Statement of County Funded Court-Related Functions, Section 29.0085, Florida Statutes. Examination of Arithmetical Accuracy and Compliance of Sections 29.008 and 29.0085, Florida Statutes by Independent Auditors

January 31

o. Broward County, Florida Landfill Management Escrow Account Schedule of Activity

January 31

p. Broward County Aviation Department Reports on Passenger Facility Charge Program in Accordance with Passenger Facility Audit Guide for Public Agencies

February 15

q. North Regional Transmission, Treatment and Disposal System of Broward County, Florida Schedules of Large User Reserve Capacity and Debt Service Allocation and Schedule of Large User Annual Adjustments

February 15

r. Regional Raw Water System of Broward County, Florida Schedules of Large User Annual Adjustments

February 15

s. Independent Accountants’ Report on Applying Agreed-Upon Procedures on the Federal Funding Allocation Statistics form (FFA-10 form) of the Transit Division of Broward County, Florida’s annual National Transit Database (NTD)

January 31

2. Management Representation Letters should be furnished at least one week prior to the respective report deadlines in docx or OpenDocument format.

3. The audits MUST be completed by the dates set forth above. Extensions of time for completion may be allowed for good cause by County only if extensions are allowed by Florida Statutes.

4. Auditor understands and agrees that County may include the audited financial statements with Auditor’s opinion in the County’s Official Statements.

5. Auditor understands and agrees that County has the right to publish financials as County sees fit, including but not limited to, making the financials available on-line.

6. Separate audit exit conferences for discussion of audit findings will be held with the County Auditor, County Administrator, the Chief Financial Officer (Director of Finance and Administrative Services Department), and the Director of Accounting for management letter comments pertaining to County operations, and with each Constitutional Officer or

Component Unit for comments relating to their respective offices, prior to submission of the final management letters. All printing and reproduction costs incurred shall be borne by Auditor.

7. The Auditor shall, upon the request of County, make periodic oral presentations providing an overview of their audit plan and / or summarizing the results of the audits. Typical expectations are, for County and each Constitutional Officer, an annual planning meeting, annual draft management letter meeting (as previously stated), annual exit conference (as previously stated), bi-weekly virtual update meetings during fieldwork, and a presentation of results of the Transportation Surtax Funds to the Transportation Surtax Oversight Board.

VI. CONTINUING PROFESSIONAL EDUCATION SERVICES

Auditor shall conduct or arrange for Continuing Professional Education (CPE) Programs to County employees, by providing twenty-four (24) hours of CPE credit, 16 hours of which shall be Governmental Accounting & Auditing CPE by June 30 in each year of the Agreement. No CPE program fees will be charged to County for employees attending such sessions. These CPE Programs may be provided virtually and, if offered in person only shall be provided within the Tri-County area. Auditor is responsible for all costs and logistical arrangements of providing CPE. Auditor shall maintain and provide a tracking schedule on an annual basis listing the CPE provided, demonstrating compliance with this section. The last ten percent (10%) of annual amounts billed shall be withheld until the respective year CPE requirements are met. If provided CPE exceeds the requirement in any year, the excess may be applied to the following year requirement.