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R24-322 RESOLUTION NO. R24-322 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON 4 BEACH, FLORIDA ACCEPTING THE RECOMMENDATION OF THE CITY OF BOYNTON BEACH AUDITOR SELECTION COMMITTEE RECOMMENDING THE AWARD OF REQUEST FOR PROPOSAL # 25FIN- 001 R - FINANCIAL AUDITING SERVICES (AUDITOR) TO THE PROPOSER RANKED AS THE MOST HIGHLY QUALIFIED FIRM OF ALL RANKED FIRMS BY THE AUDITOR SELECTION COMMITTEE, CBIZ CPAs 10 P.C; AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE A 11 LETTER OF ENGAGEMENT BETWEEN THE CITY OF BOYNTON BEACH 12 AND CBIZ CPAs P.C., FOR FINANCIAL AUDITING SERVICES FOR A 13 PERIOD OF FIVE (5) YEARS FOR FISCAL YEARS ENDING ON SEPTEMBER 14 30, 2024, SEPTEMBER 30, 2025, SEPTEMBER 30, 2026, SEPTEMBER 30, 15 2027, AND SEPTEMBER 30, 2028 RESPECTIVELY, FOR AN ANNUAL 16 AMOUNT NOT TO EXCEED $130,000 FOR YEAR ONE (1) $132,000 FOR 17 YEAR TWO (2) $134,000 FOR YEAR (3) $136,000 FOR YEAR FOUR (4) 18 AND $138,000 FOR YEAR FIVE (5) FOR AN AGGREGATE FEE OF 19 $670,000; PROVIDING FOR CONFLICTS; PROVIDING FOR 20 SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE; AND FOR 21 ALL OTHER PURPOSES. 22 23 WHEREAS, section 218.391, Florida Statutes, mandates that local governments, including 24 the City of Boynton Beach, conduct independent audits of their financial statements to ensure 25 transparency, accountability, and compliance with state financial regulations; and 26 WHEREAS, on April 16, 2024, the City Commission established an Auditor Selection 27 Committee via Resolution No. R24-078 to oversee the selection of an independent auditor; and 28 WHEREAS, on October 7, 2024, the Auditor Selection Committee convened in a publicly 29 noticed meeting to define the criteria for evaluating proposals, including the qualifications of 30 personnel, relevant experience, capacity to provide required services, and other factors deemed 31 important by the committee; and 32 WHEREAS, on October 16, 2024, the City of Boynton Beach issued Request for Proposal 33 (RFP) No. FIN25-001 R for Financial Auditing Services; and 34 WHEREAS, the City received four proposals in response to the RFP, and the proposals 35 were reviewed and scored by the Auditor Selection Committee during a publicly noticed meeting 36 on November 15, 2024; and 37 38 WHEREAS, the evaluation committee has ranked the proposals as follows: 39 1st - CBIZ CPAs P.C. 40 2nd - Forvis Mazars, LLP 41 3rd - HCT Certified Public Accountants and Consultants, LLC 42 4th - Citrin Cooperman & Company, LLP; and 43 WHEREAS, based on the evaluation committee's recommendations, City staff 44 recommends awarding the contract for Financial Auditing Services to CBIZ CPAs P.C., the highest- 45 ranked proposer. 46 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF BOYNTON 47 BEACH, FLORIDA, THAT: 48 SECTION 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as 49 being true and correct and are hereby made a specific part of this Resolution upon adoption. 50 SECTION 2. The City Commission of the City of Boynton Beach, Florida, does hereby 51 award Request for Proposal No. FIN25-001 R for Financial Auditing Services to CBIZ CPAs P.C. for 52 the provision of independent auditing services in accordance with the criteria set forth in RFP No. 53 FIN25-001 R. 54 SECTION 3. The City Commission of the City of Boynton Beach, Florida, does hereby 55 approve an Auditor Contract between CBIZ CPAs P.C. and the City for financial auditing services 56 in accordance with the criteria set forth in RFP No. FIN25-001 R for a period of five (5) years for 57 fiscal years ending on September 30, 2024, September 30, 2025, September 30, 2026, September 58 30, 2027, and September 30, 2028 respectively, for an annual amount not to exceed $130,000 for 59 year one (1) $132,000 for year two (2) $134,000 for year(3) $136,000 for year four(4)and $138,000 60 for year five (5) for an aggregate fee of$670,000 (the "Agreement"), in form and substance similar 61 to that attached as Exhibit A. 62 SECTION 4. The City Commission of the City of Boynton Beach, Florida, hereby 63 authorizes the Mayor to execute the Agreement. The Mayor is further authorized to execute any 64 ancillary documents required under the Agreement or necessary to accomplish the purposes of 65 the Agreement and this Resolution. 66 SECTION 5. If any provision of this Resolution is found to be invalid or unconstitutional, 67 such invalidity shall not affect the remaining provisions of this Resolution, which shall continue in 68 full force and effect. 69 SECTION 6. The City Clerk shall retain the fully executed Agreement as a public record 70 of the City. A copy of the fully executed Agreement shall be provided to Andrew Rozwadowski to 71 forward to the Auditor. 72 SECTION 7. This Resolution shall take effect immediately. 73 74 PASSED AND ADOPTED this day of eQrr bpa' 2024. 75 CITY OF BOYNTON BEACH, FLORIDA 76 YE j NO 77 Mayor—Ty Penserga 78 79 Vice Mayor—Aimee Kelley J err 80 81 Commissioner—Angela Cruz 82 83 Commissioner—Woodrow L. Hay 84 85 Commissioner—Thomas Turkin 86 L O 87 VOTE 88 A EST: 89 6' �,J� 90 • I 1r 4)2-1 91 Maylee e "s, MPA, M C T• 'e - •a 92 City Clerk �,,, � May. 93 g F DY NT o% � JPO ...... N 94 �:.%oRPOR4••. F, APPROVED AS TO FORM: 95 (Corporate Seal) f v• ,S' 'v �� :n 96 : INCORPO ,_ RATED. gni 97 1920 98 �t► ••... •••'' % Shawna G. Lamb 99 ‘`��FLORIDP_ City Attorney aP= City of Boynton Beach Purchasing Division AUDITOR CONTRACT AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH AND [CBIZ CPAS P.C.] FOR FINANCIAL AUDITING SERVICES THIS AGREEMENT ("Agreement"), is entered into between the City of Boynton Beach, a municipal corporation organized and existing under the laws of Florida, with a business address of 100 East Ocean Ave., Boynton Beach, FL 33435, hereinafter referred to as"CITY", and[CBIZ CPAS P.C.]a [Foreign Profit Corporation:] authorized to do business in the State of Florida, with a business address of [700 WEST 47TH STREET SUITE 1100 KANSAS CITY, MO 64112], hereinafter referred to as the "AUDITOR" or "CONSULTANT" WITNESSETH: In consideration of the mutual terms and conditions, promises, covenants and payments hereinafter set forth, CITY and AUDITOR agree as follows: ARTICLE 1 PREAMBLE In order to establish the background,context and form of reference for this Agreement and to generally express the objectives, and intentions of the respective Parties herein, the following statements, representations and explanations shall be accepted as predicates for the undertakings and commitments included within the provisions which follow and may be relied upon by the Parties as essential elements of the mutual considerations upon which this Agreement is based. 1.1 In accordance with Florida Statute 218.391, the City Commission established an Auditor Selection Committee on April 16, 2024, via Resolution#R24-078. 1.2 The committee was composed of five members, with one alternate, and was chaired by the Mayor. 1.3 On October 7, 2024, the committee convened in a publicly noticed open-to-public meeting to define the criteria for evaluating proposals. 1.4 These criteria included the qualifications of personnel, relevant experience, capacity to provide the required services, and additional factors as determined by the committee. 1.5 On October 16, 2024, the CITY advertised its notice to Proposers of the CITY's desire to hire a firm to provide Financial Auditing Services (Auditor) as more particularly described in Exhibit "A" attached hereto and by this reference made a part hereof, for the said RFP entitled: RFP No. FIN25-001 R Financial Auditing Services (Auditor) 1.6 On November 8, 2024, the proposals were opened at the offices of the Purchasing Division publicly at the City of Boynton Beach the City had received four proposals, which were then submitted to the evaluation committee for review and scoring. 1.7 On November 15, 2024, the evaluation committee convened in a publicly noticed open to public meeting to score each of the proposals. 1.8 Negotiations pertaining to the services to be performed by the AUDITOR were undertaken, and this Agreement incorporates the results of such negotiation. ARTICLE 2 WORK,SERVICES AND RESPONSIBILITIES 2.1 SERVICES DESIGNATION. The city has retained the Auditor to perform services in connection with RFP No. 25FIN-001 R—Financial Auditing Services. 2.2 SCOPE OF SERVICES. AUDITOR agrees to perform the services required for the Financial FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 1 City of Boynton Beach Purchasing Division Auditing Services. 2.3 AUDITOR agrees to perform the services required for the Financial Auditing Services.The Services are further described in Exhibit A. The terms and conditions of RFP No. 25FIN-001 R and AUDITOR's proposal are expressly incorporated into this Agreement by reference. AUDITOR shall perform all Services in accordance with the Audit Engagement Letter attached to this Agreement as Exhibit B. Any conflict or discrepancy between the terms of this Agreement, RFP No. 25FIN- 001 R, AUDITOR's proposal, and any Exhibits shall be resolved pursuant to the following order of precedence (1) this Agreement, (2) RFP No. 25FIN-001 R, (3) the Exhibits, and (4) AUDITOR's proposal. 2.4 OWNERSHIP AND USE OF DOCUMENTS. All documents, drawings, specifications, and other materials produced by the AUDITOR in connection with the services rendered under this Agreement shall be the property of the City,whether the project for which they are made is executed or not. The Firm shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference, and use in connection with AUDITOR's endeavors. ARTICLE 3 TERM AND TERMINATION 3.1 TIME FOR PERFORMANCE. Work under this agreement shall commence upon written notice by the City to the AUDITOR to proceed. AUDITOR shall perform all services and provide all work product required pursuant to this agreement upon written notice to proceed. 3.2 TERM. The initial Agreement period shall be for an initial term of five (5) years, commencing on [December 17, 20241, and shall remain in effect through [December 16, 20291 unless otherwise terminated in accordance with this Agreement ("Initial Term"). 3.3 Termination for Convenience. This Agreement may be terminated by the CITY for convenience, upon six (6) months of written notice by the CITY to the AUDITOR in which event the AUDITOR shall be paid its compensation for services performed through the termination date, including services reasonably related to termination. In the event that the AUDITOR abandons this Agreement or causes it to be terminated, the AUDITOR shall indemnify the CITY against loss pertaining to this termination. 3.4 Termination for Cause. This Agreement may be terminated for cause by the aggrieved party if the party in breach has not corrected the breach within thirty (30) calendar days after receipt of written notice from the aggrieved party identifying the breach. This Agreement may be terminated for cause by CITY for reasons including, but not limited to, AUDITOR's failure to suitably or continuously perform the services in a manner calculated to meet or accomplish the objectives in this Agreement, or repeated submission (whether negligent or intentional) for payment of false or incorrect bills or invoices. 3.5 In the event of the death of a member, partner, or officer of the AUDITOR, or any of its supervisory personnel assigned to the project, the surviving members of the AUDITOR hereby agree to complete the work under the terms of this Agreement, if requested to do so by the CITY. This section shall not be a bar to renegotiations of this Agreement between surviving members of the AUDITOR and the CITY, if the CITY so chooses. 3.6 Notice of termination shall be provided in accordance with the "Notices" section of this Agreement. 3.7 In addition to any termination rights stated in this Agreement, CITY shall be entitled to seek any and all available contractual or other remedies available at law or in equity, including recovery of costs incurred by CITY due to AUDITOR's failure to comply with any term(s) of this Agreement. ARTICLE 4 COMPENSATION AND METHOD OF PAYMENT 4.1 PAYMENT. The AUDITOR shall be paid by the City for completed work and for services rendered under this agreement in accordance with the Fee Schedule attached to this Agreement as Exhibit C, and in accordance with the following: FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 2 .04°'• City of Boynton Beach Purchasing Division a. The pricing for this contract per year is listed below: b. Payment for the work provided by AUDITOR shall be made promptly on all invoices submitted to the City properly, provided that the total amount of payment to AUDITOR shall not exceed the total annual contract price without express written modification of the Agreement signed by the Mayor or designee. c. The AUDITOR may submit invoices to the City once per month during the progress of the work for partial payment for services completed to date. Invoices must contain sufficient detail to demonstrate compliance with the terms of this Agreement. Such invoices will be reviewed by the City, and upon approval thereof, payment will be made to the AUDITOR in the amount approved. d. Final payment of any balance due the AUDITOR of the total contract price earned will be made promptly upon its ascertainment and verification by the City after the completion of the work under this Agreement and its acceptance by the City. e. Payment as provided in this section by the City shall be full compensation for work performed, services rendered, and for all materials, supplies, equipment and incidentals necessary to complete the work. f. The AUDITOR's records and accounts pertaining to this agreement are to be kept available for inspection by representatives of the City and State for a period of three (3) years after the termination of the Agreement. Copies shall be made available upon request. g. All payments shall be governed by the Local Government Prompt Payment Act, as set forth in Part VII, Chapter 218, Florida Statutes. h. COMPLIANCE WITH LAWS. AUDITOR shall, in performing the services contemplated by this Agreement, faithfully observe and comply with all federal, state, and local laws, ordinances, and regulations that are applicable to the services to be rendered under this agreement. ARTICLE 5 INDEMNIFICATION 5.1 The AUDITOR shall indemnify and hold harmless the CITY, its officers, employees, agents and instrumentalities from any and all liability, losses or damages, including attorneys' fees and costs of defense through the conclusion of any appeals,which the CITY or its officers, employees, agents or instrumentalities may incur as a result of claims, demands, suits, causes of actions or proceedings of any kind or nature arising out of, relating to and resulting from the performance of this Agreement by the AUDITOR, its employees, agents, partners, principals or subcontractors. The AUDITOR shall pay all claims and losses in connection therewith and shall investigate and defend all claims, suits or actions of any kind or nature in the name of the CITY, where applicable, including appellate proceedings, and shall pay all costs,judgments, and attorneys'fees which may issue thereon. Neither party to this Agreement shall be liable to any third party claiming directly or through the other respective party, for any special, incidental, indirect, or consequential damages of any kind, including but not limited to lost profits or use that may result from this Agreement or out of the services or goods furnished hereunder. 5.2 The parties understand and agree that the covenants and representations relating to this indemnification provision shall survive the term of this Agreement and continue in full force and effect as to the party's responsibility to indemnify. 5.3 Nothing contained herein is intended nor shall be construed to waive CITY's rights and immunities under the common law or§768.28, Fla. Stat., as may be amended from time to time. ARTICLE 6 INSURANCE A. During the performance of the Work under this Agreement, AUDITOR shall maintain the following insurance policies and provide originals or certified copies of all policies to CITY's Risk FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 3 City of Boynton Beach Purchasing Division Management. All polices shall be written by an insurance company authorized to do business in Florida.AUDITOR shall be required to obtain all applicable insurance coverage, as indicated below, prior to commencing any Work pursuant to this Agreement: i. Worker's Compensation Insurance: The AUDITOR shall procure and maintain for the life of this Agreement,Worker's Compensation Insurance covering all employees with limits meeting all applicable state and federal laws. This coverage shall include Employer's Liability with limits meeting all applicable state and federal laws. This coverage must extend to any subcontractor that does not have their own Worker's Compensation and Employer's Liability Insurance. The policy must contain a waiver of subrogation in favor of the City of Boynton Beach, executed by the insurance company. ii. Comprehensive General Liability: The AUDITOR shall procure and maintain for the life of this Agreement, Comprehensive General Liability Insurance. This coverage shall be on an "Occurrence" basis. Coverage shall include Premises and Operations; Independent consultants, Products-Completed Operations and Contractual Liability with specific reference to Article 8, "Indemnification" of this Agreement. This policy shall provide coverage for death, personal injury, or property damage that could arise directly or indirectly from the performance of this Agreement. AUDITOR shall maintain a minimum coverage of$1,000,000 per occurrence and $1,000,000 aggregate for personal injury/and $1,000.000 per occurrence/aggregate for property damage. The general liability insurance shall include the CITY as an additional insured and shall include a provision prohibiting cancellation of the policy upon thirty (30)days prior written notice to the CITY. iii. Business Automobile Liability: The AUDITOR shall procure and maintain, for the life of this Agreement, Business Automobile Liability Insurance. The AUDITOR shall maintain a minimum amount of$1,000,000 combined single limit for bodily injury and property damage liability to protect the AUDITOR from claims for damage for bodily and personal injury, including death, as well as from claims for property damage, which may arise from the ownership, use of maintenance of owned and non-owned automobile, included rented automobiles, whether such operations be by the AUDITOR or by anyone directly or indirectly employed by the AUDITOR. iv. Professional Liability(Errors and Omissions) Insurance: The AUDITOR shall procure and maintain for the life of this Agreement in the minimum amount of $1,000,000 per occurrence. v. Umbrella/Excess Liability Insurance: in the amount of $1,000,000.00 as determined appropriate by the CITY depending on the type of job and exposures contemplated. Coverage must be following form of the General Liability, Auto Liability, and Employer's Liability. This coverage shall be maintained for a period of no less than the later of three (3) years after the delivery of goods/services or final payment pursuant to the Agreement. B. AUDITOR shall provide the CITY with all Certificates of Insurance required under this section prior to beginning performance under this Agreement. Failure to maintain the required insurance will be considered a default of the Agreement. C. The CITY shall be named as an additional insured. The coverage shall contain no limitations on the scope of protection afforded the CITY, its officers, officials, employees, or volunteers. A current valid insurance policy meeting the requirements herein identified shall be maintained during the duration of this Agreement and shall be endorsed to state that coverage shall not be suspended, voided, or cancelled by either party, reduced in coverage in limits except after thirty (30) calendar days prior written notice by either certified mail, return receipt requested, has been given to the CITY. D. The CITY reserves the right to reasonably require any additional insurance coverage or increased limits as determined necessary by the Risk Management. The CITY reserves the right to review, FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 4 City of Boynton Beach Purchasing Division modify, reject, or accept any required policies of insurance, including limits, coverage, or endorsements throughout the Term of the Agreement. 10. INDEPENDENT CONSULTANT. The AUDITOR and the CITY agree that the AUDITOR is an independent contractor with respect to the Work provided pursuant to this Agreement. Nothing in this Agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither AUDITOR nor any employee of AUDITOR shall be entitled to any benefits accorded CITY employees by virtue of the services provided under this Agreement. The CITY shall not be responsible for withholding or otherwise deducting federal income tax or Social Security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to AUDITOR or any employee of AUDITOR. 11. COVENANT AGAINST CONTINGENT FEES. The AUDITOR warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for the AUDITOR, to solicit or secure this Agreement, and that AUDITOR has not paid or agreed to pay any company or person, other than a bona fide employee working solely for the AUDITOR any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, the CITY shall have the right to annul this Agreement without liability or, in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 12. DISCRIMINATION PROHIBITED. The AUDITOR, with regard to the work performed by it under this agreement, will not discriminate on the grounds of race, color, national origin, religion, creed, age, sex, or the presence of any physical or sensory handicap in the selection and retention of employees or procurement of materials or supplies. 13. ASSIGNMENT. The AUDITOR shall not sublet or assign any of the Work covered by this Agreement without the express written consent of the CITY. 14. NON-WAIVER. Waiver by the CITY of any provision of this Agreement or any time limitation provided for in this Agreement shall not constitute a waiver of any other provision. 15. DISPUTES. Any disputes that arise between the parties with respect to the performance of this Agreement, which cannot be resolved through negotiations, shall be submitted to a court of competent jurisdiction exclusively in Palm Beach County, Florida. This Agreement shall be construed under Florida Law. 16. NOTICE. All notices required in this Contract shall be sent by certified mail, return receipt requested, and if sent to CITY, shall be mailed to: Daniel Dugger, City Manager City of Boynton Beach 100 East Ocean Ave., Boynton Beach, FL 33435 Telephone No. (561) 742-6000 Copy to: Shawna G. Lamb, City Attorney 100 East Ocean Ave., Boynton Beach, FL 33435 Telephone No. (561) 742-6000 Notices to AUDITOR shall be sent to the following address: Registered Agent Name &Address FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 5 City of Boynton Beach Purchasing Division CORPORATION SERVICE COMPANY 1201 HAYS STREET TALLAHASSEE, FL 32301-2525 Phone: 561.653.7300 Email: Moises.Ariza(a marcumllp.com FIN #: 43-1947695 17. PUBLIC RECORDS. The AUDITOR shall comply with Florida's Public Records Law. Specifically, the AUDITOR shall: A. Keep and maintain public records required by the CITY to perform the Work. B. Upon request from the CITY's custodian of public records, provide the CITY with a copy of the requested records or allow the records to be inspected or copied within a reasonable time at a cost that does not exceed the cost provided in Chapter 119, Fla. Stat. or as otherwise provided by law. C. Ensure that public records that are exempt or that are confidential and exempt from public record disclosure requirements are not disclosed except as authorized by law for the duration of the contract term and, following completion of the contract, AUDITOR shall destroy all copies of such confidential and exempt records remaining in its possession once the AUDITOR transfers the records in its possession to the CITY; and D. Upon completion of the contract, AUDITOR shall transfer to the CITY, at no cost to the CITY, all public records in AUDITOR's possession All records stored electronically by AUDITOR must be provided to the CITY, upon request from the CITY's custodian of public records, in a format that is compatible with the information technology systems of the CITY. IF THE AUDITOR HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO THE AUDITOR'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS CONTRACT, CONTACT THE CUSTODIAN OF PUBLIC RECORDS: CITY CLERK'S OFFICE 100 E. OCEAN AVENUE BOYNTON BEACH, FLORIDA, 33435 561-742-6060 CityClerk(a�bbfl.us 18. UNCONTROLLABLE FORCES. A. Neither the CITY nor AUDITOR shall be considered to be in default of this Agreement if delays in or failure of performance shall be due to Uncontrollable Forces, the effect of which, by the exercise of reasonable diligence, the non-performing party could not avoid. The term "Uncontrollable Forces" shall mean any event which results in the prevention or delay of performance by a party of its obligations under this Agreement and which is beyond the reasonable control of the non- performing party. It includes, but is not limited to, fire, flood, earthquakes, storms, lightning, epidemic, war, riot, civil disturbance, sabotage, and governmental actions. B. Neither party shall, however, be excused from performance if non-performance is due to forces that are preventable, removable, or remediable and which the non-performing party could have, with the exercise of reasonable diligence, prevented, removed, or remedied with reasonable dispatch. The non-performing party shall, within a reasonable time of being prevented or delayed from performance by an uncontrollable force, give written notice to the other party describing the FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 6 6 o 4 City of Boynton Beach Purchasing Division circumstances and uncontrollable forces preventing continued performance of the obligations of this Agreement. 19. SCRUTINIZED COMPANIES. By execution of this Agreement,AUDITOR certifies that AUDITOR is not participating in a boycott of Israel. AUDITOR further certifies that AUDITOR is not on the Scrutinized Companies that Boycott Israel list, not on the Scrutinized Companies with Activities in Sudan List, and not on the Scrutinized Companies with Activities in the Iran Petroleum Energy Sector List, or has AUDITOR been engaged in business operations in Syria. Subject to limited exceptions provided in state law, the CITY will not contract for the provision of goods or services with any scrutinized company referred to above. Submitting a false certification shall be deemed a material breach of contract. The CITY shall provide notice, in writing, to AUDITOR of the CITY's determination concerning the false certification. AUDITOR shall have five (5) days from receipt of notice to refute the false certification allegation. If such false certification is discovered during the active contract term, AUDITOR shall have ninety (90) days following receipt of the notice to respond in writing and demonstrate that the determination of false certification was made in error. If AUDITOR does not demonstrate that the CITY's determination of false certification was made in error, then the CITY shall have the right to terminate the contract and seek civil remedies pursuant to Section 287.135, Florida Statutes, as amended from time to time. 20. E-VERIFY. AUDITOR is used interchangeably with CONTRACTOR throughout this Section. AUDITOR certifies that it is aware of and complies with the requirements of Section 448.095, Florida Statutes, as may be amended from time to time and briefly described herein below. A. Definitions for this Section: i. "Contractor" means a person or entity that has entered or is attempting to enter into a contract with a public employer to provide labor, supplies, or services to such employer in exchange for salary, wages, or other remuneration. "Contractor" includes, but is not limited to, an AUDITOR or consultant. ii. "Subcontractor" means a person or entity that provides labor, supplies, or services to or for a contractor or another subcontractor in exchange for salary, wages, or other remuneration. iii. "E-Verify system" means an Internet-based system operated by the United States Department of Homeland Security that allows participating employers to electronically verify the employment eligibility of newly hired employees. B. Registration Requirement; Termination. Pursuant to Section 448.095, Florida Statutes, effective January 1, 2021, Contractors, shall register with and use the E-Verify system in order to verify the work authorization status of all newly hired employees. Contractor shall register for and utilize the U.S. Department of Homeland Security's E-Verify System to verify the employment eligibility of: i. All persons employed by a Contractor to perform employment duties within Florida during the term of the contract. ii. All persons (including sub-vendors/sub-consultants/sub-contractors)assigned by Contractor to perform work pursuant to the contract with the CITY of Boynton Beach. The Contractor acknowledges and agrees that registration and use of the U.S. Department of Homeland Security's E-Verify System during the term of the contract is a condition of the contract with the CITY of Boynton Beach; and iii. The Contractor shall comply with the provisions of Section 448.095, Fla. Stat., "Employment Eligibility," as amended from time to time. This includes, but is not limited to, registration and utilization of the E-Verify System to verify the work authorization status of all newly hired employees. Contractor shall also require all subcontractors to provide an affidavit attesting that the subcontractor does not employ, contract with, or subcontract with an unauthorized alien. The Contractor shall maintain a copy of such affidavit for the duration of the contract. Failure to comply will lead to termination of this Contract, or if a subcontractor knowingly violates the statute, the subcontract must be terminated immediately. Any challenge to termination under FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 7 ff!'== City of Boynton Beach Purchasing Division this provision must be filed in the Circuit Court no later than twenty(20)calendar days after the date of termination. Termination of this Contract under this Section is not a breach of contract and may not be considered as such. If this contract is terminated for a violation of the statute by the Contractor, the Contractor may not be awarded a public contract for a period of one (1) year after the date of termination. 21. MISCELLANEOUS. A. No assignment by a party hereto of any rights under or interests in this Agreement will be binding on another party hereto without the written consent of the party sought to be bound; and specifically but without limitation, moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law), and unless specifically stated to the contrary in any written consent to an assignment no assignment will release or discharge the assignor from any duty or responsibility under this Agreement. B. CITY and AUDITOR each binds itself, their partners,successors,assigns and legal representatives to the other party hereto, their partners, successors, assigns and legal representatives in respect of all covenants, agreements and obligations contained in this Agreement. C. In the event that either party brings suit for enforcement of this Agreement, each party shall bear its own attorney's fees and court costs, except as otherwise provided under the indemnification provisions set forth herein above. D. Prior to final payment of the amount due under the terms of this Agreement, to the extent permitted by law, a final waiver of lien shall be required to be submitted by the AUDITOR, as well as all suppliers and subcontractors who worked on the project that is the subject of this Agreement. Payment of the invoice and acceptance of such payment by AUDITOR shall release CITY from all claims of liability by AUDITOR in connection with this Agreement. E. At all times during the performance of this Agreement, AUDITOR shall protect CITY's property from all damage whatsoever on account of the work being carried on under this Agreement. F. It shall be the AUDITOR's responsibility to be aware of and comply with all statutes, ordinances, rules, orders, regulations, and requirements of all local, city, state, and federal agencies as applicable. G. This Agreement represents the entire and integrated agreement between CITY and AUDITOR and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement is intended by the parties hereto to be the final expression of this Agreement, and it constitutes the full and entire understanding between the parties with respect to the subject hereof, notwithstanding any representations, statements, or agreements to the contrary heretofore made. In the event of a conflict between this Agreement,the solicitation, and the AUDITOR's bid proposal, this Agreement shall govern then, the solicitation, and then the bid proposal. This Agreement may be amended only by written instrument signed by both CITY and AUDITOR. H. This Agreement will take effect on the Effective Date. This Agreement may be executed by hand or electronically in multiple originals or counterparts, each of which shall be deemed to be an original and together shall constitute one and the same agreement. Execution and delivery of this Agreement by the Parties shall be legally binding, valid and effective upon delivery of the executed documents to the other party through facsimile transmission, email, or other electronic delivery. I. Countries of Concern: AUDITOR represents that it is, and for the duration of the Term will remain, in compliance with Section 286.101, Florida Statutes. J. Public Entity Crimes Act: AUDITOR represents that it is familiar with the requirements and prohibitions under the Public Entity Crime Act, Section 287.133, Florida Statutes, and represents that its entry into this Agreement will not violate that Act. AUDITOR further represents that there has been no determination that it committed a "public entity crime" as defined by Section 287.133, Florida Statutes, and that it has not been formally charged with committing an act defined as a "public entity crime" regardless of the amount of money involved or whether AUDITOR has been placed on the convicted vendor list. 22. DEFAULT OF CONTRACT & REMEDIES. A. Correction of Work. If, in the judgment of CITY, Work provided by AUDITOR does not conform to the requirements of this Agreement, or if the Work exhibits poor workmanship, CITY reserves the right to require that AUDITOR correct all deficiencies in the Work to bring the work into conformance without additional cost to CITY, and/or replace any personnel who fail to perform in accordance with the requirements of this Agreement. CITY shall be the sole judge of non- conformance and the quality of workmanship. FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 8 oP City of Boynton Beach • Purchasing Division B. Default of Contract. The occurrence of any one or more of the following events shall constitute a default and breach of this Agreement by AUDITOR: i The abandonment of the project by AUDITOR for a period of more than seven (7) business days. ii The abandonment, unnecessary delay, refusal of, or failure to comply with any of the terms of this Agreement or neglect, or refusal to comply with the instructions of the CITY's designee. iii The failure by AUDITOR to observe or perform any of the terms, covenants, or conditions of this Agreement to be observed or performed by AUDITOR, where such failure shall continue for a period of seven (7) days after written notice thereof by CITY to AUDITOR; provided, however, that if the nature of AUDITOR 's default is such that more than seven (7) days are reasonably required for its cure, then AUDITOR shall not be deemed to be in default if AUDITOR commences such cure within said seven (7) day period and thereafter diligently prosecutes such cure to completion. iv The assignment and/or transfer of this Agreement or execution or attachment thereon by AUDITOR or any other party in a manner not expressly permitted hereunder. v The making by AUDITOR of any general assignment or general arrangement for the benefit of creditors, or the filing by or against AUDITOR of a petition to have AUDITOR adjudged a bankruptcy,or a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in the case of a petition filed against AUDITOR, the same is dismissed within sixty(60) calendar days); or the appointment of a trustee or a receiver to take possession of substantially all of AUDITOR's assets, or for AUDITOR 's interest in this Agreement, where possession is not restored to AUDITOR within thirty (30) calendar days; for attachment, execution or other judicial seizure of substantially all of AUDITOR 's assets, or for AUDITOR 's interest in this Agreement, where such seizure is not discharged within thirty (30) calendar days. C. Remedies in Default. In case of default by AUDITOR, CITY shall notify AUDITOR, in writing, of such abandonment, delay, refusal, failure, neglect, or default and direct AUDITOR to comply with all provisions of the Agreement. If the abandonment, delay, refusal, failure, neglect or default is not cured within seven (7) business days of when notice was sent by CITY, CITY may declare a default of the Agreement and notify AUDITOR of such declaration of default and terminate the Agreement. i Upon such declaration of default, all payments remaining due AUDITOR at the time of default, less all sums due CITY for damages suffered, or expenses incurred by reason of default, shall be due and payable. ii CITY may complete the Agreement, or any part thereof, either by day labor, use of a subcontractor, or by re-letting a contract for the same, and procure the equipment and the facilities necessary for the completion of the Agreement and charge the cost of same to AUDITOR the costs incident thereto to such default. iii In the event CITY completes the Agreement at a lesser cost than would have been payable to AUDITOR under this Agreement, if the same had been fulfilled by AUDITOR, CITY shall retain such differences. Should such cost to CITY be greater, AUDITOR shall pay the amount of such excess to the CITY. iv Notwithstanding the other provisions in this Article, CITY reserves the right to terminate the Agreement at any time, whenever the service provided by AUDITOR fails to meet reasonable standards of the trade after CITY gives written notice to the AUDITOR of the deficiencies. 23. SOVEREIGN IMMUNITY. Nothing contained herein is intended to serve as a waiver of sovereign immunity by the CITY or as a waiver of limits of liability or rights the CITY may have under the doctrine of sovereign immunity or under Section 768.28, Florida Statutes. 24. ENTITIES OF FOREIGN CONCERN. AUDITOR will have access to an individual's personal identifying information under this Agreement. AUDITOR represents and certifies: (i) AUDITOR is not owned by the government of a foreign country of concern; (ii) the government of a foreign country of concern does not have a controlling interest in AUDITOR; and (iii) AUDITOR is not organized under the laws of and does not have its principal place of business in, a foreign country of concern. Prior to AUDITOR and any subcontractor having access to personal identifying information pursuant to this Agreement, AUDITOR and any subcontractor shall submit to City executed affidavit(s) under penalty of perjury, in a form approved by City attesting that the entity does not meet any of the criteria in Section 287.138(2), Florida Statutes. Compliance with the requirements of this section is included in the requirements of a FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 9 City of Boynton Beach f Purchasing Division proper invoice. Terms used in this section that are not otherwise defined in this Agreement shall have the meanings ascribed to such terms in Section 287.138, Florida Statutes. 25. ANTI-HUMAN TRAFFICKING. On or before the Effective Date of this Agreement, AUDITOR shall provide CITY with an affidavit attesting that the AUDITOR does not use coercion for labor or services, in accordance with Section 787.06(13), Florida Statutes. FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 10 . \ '''''e. - 1 City of Boynton Beach -v' Purchasing Division IN WITNESS WHEREOF, the parties have hereunto set their hands and seals on the day and year set forth below their respective signatures. DATED this /-7443ay of \ lVzn'1.L.- , 2024 CITY OF BOYNTON BEACH AUDITOR ":". / _4110 / f/24,7-g 77 4. 6 Ty ,a er_,_ I ayor / (Signature), :I MAS P.C. nor Moises D. Ariza Print Name of Authorized Official Shareholder Title (Corporate Seal) ---,‘i •ice I �41 BRANDEN LOPEZ Attest/Authenticated 1 Notary Public•Slate of Florida `N�;r ` Commission,P NH 527815 n III ........ My Comm.Expires Jun 4,2028 ' • 8� l 10►4.1i - trAIR VVitness5) Q r by (YIQAYIS of 0,1\36(00 ?re `ee . Branden A. Lopez Print Name Appr ved as to Fo aufA at/2h Office of the City Attorney _OF B9 'tvtO)(1� Cs .•GORPoR..Oji 11 L. i V.• 9T\• ,+l 'I NCORPQ 2 1 ' test:d/A. enti -. .. 1 RATED: ea920 „ F �' .��.� ` . `,, ORIDA Office .f ill ity Clerk FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 11 - . 45;1- • • • •' \r3 ........ .1 • •,t4 ;re.. •. • ; c : /4 • . • -) • yo° .• Ns • • ,•• City of Boynton Beach 8 .;`` Purchasing Division CORPORATE ACKNOWLEDGEMENT STATE OF Florida COUNTY OF Palm Beach The foregoing instrument was acknowledged before me by means of physical presence or o online notarization, this 5th day of December 20_4, by Moises D. Ariz on behalf of CBIZ CPAS P C. a Professional Corporation .frit; he(s personally known to TO or has produced as identification I 1s�� BRANDEN LOPEZ • OTARY • •'� `_ Notary Public-State of Florida �l sCommission#NH 527815 oad , Branders Lopez r My Comm.Expires Jun 4,2028 (Name of Notary Typed, Printed or Stamped) Title or Rank Serial number, if any FIN25-001R-FINANCIAL AUDITING SERVICES(AUDITOR) 12 oP� City of Boynton Beach Purchasing Division EXHIBIT A SCOPE OF SERVICES Auditor shall at all times during this agreement be a licensed certified public accounting firm under Chapter 473, Florida Statutes, and shall be qualified to conduct audits in accordance with government auditing standards as adopted by the Florida Board of Accountancy. Auditor shall audit the City's financial statements for the fiscal years ending September 30, 2024, through 2028. The audit shall be conducted for the purpose of forming an opinion of the general-purpose financial statements taken as a whole and to determine whether operations were conducted in accordance with legal and regulatory requirements. Audits are to be performed in accordance with generally accepted auditing standards (GAAP), and, the standards for financial audits set forth in the U.S. General Accountability Office's (GAO) Government Auditing Standards issued by the Comptroller General of the United States,the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), Audits of State and Local Governments (Revised) — AICPA, Section 215.97 and F.S. 218.39, Florida Statutes, Florida Single Audit Act; and Chapter 10.550 Local Governmental Entity Audits, Rules of the Auditor General, State of Florida and any other applicable Federal, State and local laws and regulations. SCOPE OF SERVICES: The City of Boynton Beach requires the auditor to express an opinion on the fair presentation of its basic financial statements in conformity with accounting standards generally accepted in the United States GAAP) and reporting requirements of the Government Accounting Standards Board (GASB). The Auditor is required to audit the financial statements of the governmental activities,the business-type activities, each major fund, and the aggregate remaining fund information of the City, which collectively comprise the City's basic financial statements. The Auditor is not required to audit the introductory section of the Annual Comprehensive Financial Report (ACFR), its Management's Discussion and Analysis, its required supplementary information, and the statistical section of the ACFR. However, the auditor is to provide an "in-relation-to" report on the combining and individual fund financial statements and supporting schedules based on the auditing procedures applied during the audit of the basic financial statements. The City expects to file the ACFRs annually with the Government Finance Officers Association of the United States and Canada (GFOA) for review in the Certificate of Achievement for Excellence in Financial Reporting Program. It is anticipated that the Auditor will provide special assistance to the City of Boynton Beach to meet the requirements of that program by providing technical advice to ensure the awarding of certification. The auditor shall also be responsible for performing certain limited procedures involving required supplementary information required by the Governmental Accounting Standards Board as mandated by generally accepted auditing standards. The Auditor will also assist in the Financial Condition Assessment, including applying any changes to the Auditor General requirements. a. The Auditor will assist the City in complying with changes in any reporting requirements to remain in conformity with GAAP. b. The auditor may be requested to perform other auditing services at the discretion of the City. Any such additional work agreed to between the City of Boynton Beach and the selected firm shall be performed only upon a written agreement and in accordance with provisions specified in the Request for Proposal. AUDITING STANDARDS TO BE FOLLOWED The audit shall be performed in accordance with: a. Generally accepted auditing standards and audits of State and Local government units as set forth by the American Institute of Certified Public Accountants (AICPA). b. The Standards set forth for financial audits under Government Auditing Standards issued by the Comptroller General of the United States. c. The requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). d. The provisions of the Florida Single Audit Act (as amended). °O. Cit of Boynton B h yBeach Purchasing Division e. Rules of the State of Florida Department of Financial Services Regulations. f. Rules of the Auditor General for the State of Florida, for form and content of governmental unit audits. g. The provisions of the Federal Single Audit Act (as Amended). h. Section 215.97 and 218.39, Florida Statutes, and any other applicable Florida Statutes. i. State of Florida Department of Banking and Finance Regulations. j. Any other applicable Federal, state, or local regulations or professional guidance not specifically listed above as well as any additional requirements that may be adopted by these organizations in the future. Any updates of, or amendments to, these described auditing standards or applicable laws are to be incorporated in future audits performed by the selected auditor performing auditing engagements for the City in future fiscal years. REPORTS TO BE ISSUED Following the completion of the audit of the fiscal year's financial statements, the auditor shall issue: a. A report on the fair presentation of the basic financial statements in conformity with accounting principles generally accepted in the United States (GAAP). b. A report on internal control over financial reporting based and other matters based on an audit of financial statements performed in accordance with government auditing standards. c. A report on compliance with applicable laws and regulations, as required by Government Auditing Standards. d. A management letter required by Section 11.45(3) (a)4, Florida Statutes. e. Reports required by the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), as may be amended, to include, but not limited to: i An "in relation to" opinion on the schedules of federal and state financial assistance. ii A report on compliance on each major program and on internal control over compliance in accordance with the Uniform Guidance. iii A schedule of expenditures of federal awards and notes to schedule of federal awards. iv A schedule of findings and questioned costs. v A schedule of prior audit findings. vi A report on compliance with requirements applicable to State Financial Assistance. vii Reports as may be required to comply with Florida Statutes, Sections 215.97, and 218.39. f. Other required disclosures required by relevant Rules of the Auditor General. g. Irregularities and Illegal Acts—auditors shall be required to make an immediate,written report of all irregularities and illegal acts or indications of illegal acts of which they become aware to the Director of Financial Services, the City Manager, and City Commission as appropriate. h. In the required report(s) on internal controls, the auditor shall communicate any reportable conditions found during the audit. A reportable condition shall be defined as a significant deficiency in the design or operation of the internal control structure, which could adversely affect the organization's ability to record, process, summarize and report financial data consistent with the assertions of management in the financial statements. Reportable conditions that are also material weaknesses shall be identified as such in the report. Non-reportable conditions and other matters discovered by the auditors shall be reported in a separate letter to management, which shall be referred to in the reports on internal controls. The report on compliance shall include all material instances of noncompliance. All nonmaterial instances of noncompliance shall be reported in a separate management letter, which shall be referred to in the report on compliance. Use of the audited financial statements, opinions or any of the above-named reports will not result in additional compensation unless their use requires additional certification or services on the part of the firm. .0„ City of Boynton Beach Purchasing Division • Coordinate with City staff in the production of an ACFR in compliance with GFOA guidelines (to the extent desired by City staff). • Annual Comprehensive Financial Report (ACFR), the City desires the auditor to publish the ACFR using the City's format and provide (15) bound copies for distribution and a .pdf file that can be used for electronic submission. • Use of the audited financial statements, opinions or any of the above-named reports will not result in additional compensation unless their use requires additional certification or services on the part of the firm. The auditor shall submit a signed audit report on the fair presentation of the financial statements in conformity with GAAP no later than March 31, for the previous fiscal year ending September 30, along with the required reports on internal control structure and compliance with laws and regulations. SPECIAL CONSIDERATIONS • The City of Boynton Beach will send its Annual Comprehensive Financial Report (ACFR), to the Government Finance Officers Association of the United States and Canada for meritorious review in their Certificate of Achievement for Excellence in Financial Reporting program. It is anticipated that the auditor will be required to provide special assistance to the City to meet the requirements of that program by providing technical advice to ensure award of certification. • During the contract period, the City may prepare one or more official statements in connection with the sale of debt securities that will contain the basic financial statements and the auditor's report thereon. The auditor shall be required, if requested by the financial advisor and /or the underwriter, to issue a "consent and citation of expertise" as the auditor and any necessary "comfort letters". • The schedules of federal and state financial assistance and related auditor's report, as well as the reports on the internal control structure and compliance, are to be issued in conjunction with the ACFR. • The auditor will assist the City in complying with changes in reporting requirements to remain in conformity with GAAP. • The Auditor will prepare the Financial Condition Assessment. • The auditor will assist the City with the physical production of up to fifteen (15) printed and bound color copies and a PDF formatted electronic copy of the ACFR. • The selected firm will make a "good faith effort" that any employee that works on the City of Boynton Beach audit will return each year to the City of Boynton Beach audit if they are employed by the Firm in their Municipal Audit Section of the Firm. • The City may periodically require an Electronic Data Processing (EDP) audit of its Information Systems. A detailed scope of services will be developed, and prices will be negotiated when services are requested. WORKING PAPER RETENTION AND ACCESS TO WORKING PAPERS All working papers and reports must be retained, at the auditor's expense, in accordance with requirements and procedures set forth by the General Records Schedule for State and Local Government Agencies as promulgated by the Division of Library and Information Services (a division of the Florida Department of State), unless the firm is notified in writing by the City of Boynton Beach of the need to extend the retention period. City management and their representatives shall be entitled at any time during the contract period to inspect and reproduce such documents as deemed necessary. The auditor will be required to make working papers available, upon request, to the following parties or their designees: 1. City Boynton Beach 2. U.S. General Accountability Office (U.S. GAO) 3. Cognizant Agency 4. Parties designated by the federal or state governments or by the City of Boynton Beach as part of an audit quality review process. .- City of Boynton Beach .' _••`� Purchasing Division In addition, the Auditor shall respond to the reasonable inquiries of successor auditors and allow successor auditors to review working papers relating to matters of continuing accounting significance. As requests for copies of working papers are fulfilled,the auditor will be required to notify the Director of Financial Services of the request, as appropriate. ADDITIONAL SERVICES If, during the contractual period, additional auditing or accounting services are needed, the Auditor may be engaged to perform these services. The Auditor shall, upon receipt of a written request from the City, perform such additional services. Such services, if offered by the Auditor, may include, but not be limited to: A. Management advisory services B. Arbitrage calculations C. Extended audit services or special audits D. Assistance in the preparation of any Official Statements required by Bond Counsel All additional work will be documented by engagement memoranda to be approved by the City in accordance with the procurement policies of the City. The Auditor will be compensated in accordance with the Fee Schedule. The total amount for additional services shall be separately negotiated at the time of the engagement for a not-to-exceed amount calculated in accordance with the rates of this Agreement. In addition, the audit firm will be responsible for ensuring that any additional services provided do not impair the firm's independence as prescribed in Amendment 3 to Government Auditing Standards. ASSISTANCE TO BE PROVIDED TO THE AUDITOR AND REPORT PREPARATION Finance and Administrative Services Department The Finance and Administrative Services Department staff and responsible management personnel will be available during the audit to assist the firm by providing information, documentation, and explanations. The preparation of confirmations will be the responsibility of the City of Boynton Beach. Finance and Administrative Services Department staff will provide all data as requested, but the audit firm is responsible for formatting the data to accommodate their required schedules and work papers. The Financial Services staff will be available during the audit to assist the firm by providing information, documentation, and explanations. In addition, staff will provide the following: • Preparation of the confirmations and lead schedules. • Assistance in providing paid invoices, canceled checks, and other supporting documentation as requested by the firm. • Year-end closing of the books of account and preparation of necessary adjusting journal entries. • Preparation of schedules and related materials as requested by the firm. • Preparation of all financial statements including related notes and required supplemental financial information. • Preparation of the annual local government financial report submitted to the Florida Department of Banking and Finance. • Information Technology (IT) Assistance Certain IT personnel will be available to assist the auditor in performing the engagement. IT personnel will also be available to provide systems documentation and explanations. The Auditor will not be provided with computer time or the use of the City of Boynton Beach's computer hardware and software. • Work Area, Network, Telephones, Photocopying and Fax Machines The City of Boynton Beach will provide the auditor with reasonable workspace, desks and chairs. The auditor will also be provided access to telephone lines, photocopying facilities, facsimile machines and internet for the on-site audit staff. The auditors will provide their own laptop computers and necessary peripheral devices. Any cost or charge incurred not associated with the engagement will be paid by the Auditor. • Report Preparation Auditor shall prepare all individual, combining, and entity-wide Financial Statements, and issue the Independent Auditor's Report. The City will provide the front covers, back covers, and tab inserts, as well as the transmittal letter, MDA, and statistical tables, and update the notes to the financial statements. Preparation color printing and binding (up to 15 copies)of the ACFR shall be the responsibility of the Auditor. The Auditor shall also provide an electronic copy of the ACFR in PDF format. The cost of the physical production (printing)of the ACFR should be listed separately. o ` City of Boynton Beach Purchasing Division EXHIBIT B ENGAGEMENT LETTER .0 City of Boynton Beach Purchasing Division November 22, 2024 City of Boynton Beach, Florida Attn: Mr. Dan Dugger, City Manager and Mr. Peter V. Kajokas, Finance Director 100 E. Ocean Avenue Boynton Beach, Florida 33435 You have requested that we audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Boynton Beach, Florida ("the City", "Client," "you" or "your"), as of September 30, 2024, and for the fiscal year then ended, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. We are pleased to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services CBIZ CPAs P.C. ("CBIZ CPAs," the "Firm," "we," "us" or "our") will provide for the fiscal years ended September 30, 2024 through September 30, 2028. Our audit will be conducted with the objectives of our expressing an opinion on each opinion unit. The objectives of our audit of the financial statements are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual agreements. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America (GAAS) and in accordance with Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Accounting principles generally accepted in the United States of America, (U.S. GAAP,) as promulgated by the Governmental Accounting Standards Board (GASB) require that management's discussion and analysis (MD&A), the budgetary comparison schedules for 6 City of � � C ty Boynton Beach Purchasing Division the General Fund and Boynton Beach CRA Special Revenue Fund, and various pension and other post-employment benefits (OPEB) schedules, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally accepted in the United States of America. These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation, and comparing the information for consistency with management's responses to our inquiries. We will not express an opinion or provide any form of assurance on the RSI. The following RSI is required by accounting principles generally accepted in the United States of America. This RSI will be subjected to certain limited procedures but will not be audited: • Management's Discussion and Analysis • Budget Comparison Schedule — General Fund • Budget Comparison Schedule — CRA Special Revenue Fund • Pension Information (Schedule of Changes in Net Pension Liability (Asset) and Related Ratios, Schedule of City Contributions, Schedule of Investment Returns) • Other Postemployment Benefit (OPEB) Information (Schedule of Changes in the Total OPEB Liability and Related Ratios) Supplementary information other than RSI will accompany the City's basic financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling the supplementary information to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on the following supplementary information in relation to the financial statements as a whole: • Combining and individual fund financial statements • Schedule of expenditures of federal awards and state financial assistance, if applicable Also, the document we submit to you will include the following other additional information that will not be subjected to the auditing procedures applied in our audit of the financial statements. Management of the City is responsible for the other information included in the annual report. Our opinions on the basic financial statements do not cover the other information listed below, and we do not express an opinion or any form of assurance thereon: • City of Boynton Beach Purchasing Division • Introductory Section • Statistical Section It is our understanding that our auditors' report will be included in your annual report which is comprised of the annual comprehensive financial report (ACFR) and that this annual report will be issued by within nine (9) months after fiscal year end. Audit of the Financial Statements We will conduct our audits in accordance GAAS, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America; and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and in accordance with Chapter 10.550, Rules of the Auditor General. As part of an audit of financial statements in accordance with GAAS, Government Auditing Standards, and Chapter 10.550, Rules of the Auditor General, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. However, we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Client's ability to continue as a going concern for a reasonable period of time. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements or noncompliance may not be detected exists, even though the audit is properly planned and performed in accordance with GAAS, Government Auditing Standards of the Comptroller General of the United States of America and in accordance with Chapter 10.550, Rules of the Auditor 0 o " City of Boynton Beach Purchasing Division General. Please note that the determination of abuse is subjective and Government Auditing Standards does not require auditors to detect abuse. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any other periods. We will issue a written report upon completion of our audit of the City's basic financial statements. Our report will be addressed to the governing body of the City. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinions, add an emphasis-of-matter or other-matter paragraph(s) to our auditors' report, or if necessary, withdraw from the engagement. If our opinions on the basic financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. In accordance with the requirements of Government Auditing Standards, we will also issue a written report describing the scope of our testing over internal control over financial reporting and over compliance with laws, regulations, and provisions of grants and contracts, including the results of that testing. However, providing an opinion on internal control and compliance over financial reporting will not be an objective of the audit and, therefore, no such opinion will be expressed. In addition, if the auditing thresholds are met, we will audit the City's compliance over major federal award and state programs for the fiscal years ended September 30, 2024 through September 30, 2028. Our audit will be conducted with the objectives of our expressing an and an opinion on compliance regarding the entity's major federal and state awards. The objectives of our compliance audit is to obtain sufficient appropriate audit evidence to form an opinion and report at the level specified in the governmental audit requirement about whether the entity complied in all material respects with the applicable compliance requirements and identify audit and reporting requirements specified in the governmental audit requirement that are supplementary to GAAS and Government Auditing Standards, if any, and perform procedures to address those requirements. Audit of Major Program Compliance If auditing thresholds are met, our audit of the City's major federal and state award programs compliance will be conducted in accordance with the requirements of the Florida Single Audit Act, as amended; and the Uniform Guidance, and will include tests of accounting records, a determination of major programs in accordance with the Uniform Guidance, Florida Single Audit Act and other procedures we consider necessary to enable us to express such an opinion on major federal and state award program compliance and to render the required reports. We cannot provide assurance that an unmodified opinion on compliance will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or withdraw from the engagement. . --: City of Boynton Beach Purchasing Division The Uniform Guidance and the Florida Single Audit Act requires that we also plan and perform the audit to obtain reasonable assurance about whether material noncompliance with applicable laws and regulations, the provisions of contracts and grant agreements applicable to major federal and state award programs, and the applicable compliance requirements occurred, whether due to fraud or error, and express an opinion on the entity's compliance based on the audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, the Uniform Guidance, and Florida Single Audit Act, will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the entity's compliance with the requirements of the federal and state programs as a whole. As part of a compliance audit in accordance with GAAS, Government Auditing Standards, and the Florida Single Audit Act, we exercise professional judgment and maintain professional skepticism throughout the audit. We also identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Our procedures will consist of determining major federal and state programs and, performing the applicable procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the entity's major programs, and performing such other procedures as we considers necessary in the circumstances. The purpose of those procedures will be to express an opinion on the entity's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance and Florida Single Audit Act. Also, as required by the Uniform Guidance and Florida Single Audit Act, we will obtain an understanding of the entity's internal control over compliance relevant to the audit in order to design and perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each of the entity's major federal and state award programs. Our tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed in our report. However, we will communicate to you, regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we have identified during the audit. We will issue a report on compliance that will include an opinion or disclaimer of opinion regarding the entity's major federal and state award programs, and a report on internal controls over compliance that will report any significant deficiencies and material 6 a �.0-, City of Boynton Beach Purchasing Division weaknesses identified; however, such report will not express an opinion on internal control. Significant Risks AU-C Section 260, prescribed by the American Institute of Certified Public Accountants, is a comprehensive guide for the auditor's communication with those charged with governance. AU-C Section 260 points out that communicating significant risks, including fraud risks, helps those charged with governance understand those matters and better allows them to perform their oversight duties with regard to the financial reporting process. We have identified the following significant risks of material misstatement as part of our audit planning, and are available to discuss these with you during the course of our audit: • Management override of internal controls. • Improper revenue recognition. Management's Responsibilities Our audit will be conducted on the basis that management and, when appropriate, those charged with governance acknowledge and understand that they have responsibility: 1. For the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; 2. For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; 3. For identifying, in its accounts, all federal awards and state received and expended during the period and the federal and state programs under which they were received; 4. For maintaining records that adequately identify the source and application of funds for federally funded activities; 5. For preparing the schedule of expenditures of federal and state awards (including notes and noncash assistance received) in accordance with the Uniform Guidance and Florida Single Audit Act; 6. For designing, implementing, and maintaining effective internal control over federal awards that provides reasonable assurance that the entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards; 7. For identifying and ensuring that the entity complies with federal laws, statutes, regulations, rules, provisions of contracts or grant agreements, and the terms and conditions of federal and state award programs, and implementing systems o � City of Boynton Beach 0.. Purchasing Division designed to achieve compliance with applicable federal and state statutes, regulations, and the terms and conditions of federal award and state programs; 8. For disclosing accurately, currently, and completely the financial results of each federal award and state in accordance with the requirements of the award; 9. For identifying and providing report copies of previous audits, attestation engagements, or other studies that directly relate to the objectives of the audit, including whether related recommendations have been implemented; 10.For taking prompt action when instances of noncompliance are identified; 11. For addressing the findings and recommendations of auditors, for establishing and maintaining a process to track the status of such findings and recommendations and taking corrective action on reported audit findings from prior periods and preparing a summary schedule of prior audit findings; 12.For following up and taking corrective action on current year audit findings and preparing a corrective action plan for such findings; 13.For submitting the reporting package and data collection form to the appropriate parties; 14.For making the auditor aware of any significant contractor relationships where the contractor is responsible for program compliance; 15.To provide us with: a. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements including the disclosures, and relevant to federal and state award programs, such as records, documentation, and other matters; b. Additional information that we may request from management for the purpose of the audit; c. Unrestricted access to persons within the entity and others from whom we determine it necessary to obtain audit evidence; d. A written acknowledgement of all the documents that management expects to issue that will be included in the annual report and the planned timing and method of issuance of that annual report; and e. A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditors' report. 16.For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and Arofr City of Boynton Beach Purchasing Division pertaining to the current year period(s) under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole; 17.For acceptance of non-attest services, including identifying the proper party to oversee non-attest work; 18.For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets; 19. For informing us of any known or suspected fraud affecting the entity involving management, employees with significant role in internal control and others where fraud could have a material effect on compliance; 20.For the accuracy and completeness of all information provided; 21.For taking reasonable measures to safeguard protected personally identifiable and other sensitive information; and 22.For confirming your understanding of your responsibilities as defined in this letter to us in your management representation letter. With regard to the schedule of expenditures of federal awards and state financial assistance, you acknowledge and understand your responsibility (a) for the preparation of the schedule of expenditures of federal awards and state financial assistance in accordance with the Uniform Guidance and Florida Single Audit Act, (b)to provide us with the appropriate written representations regarding the schedule of expenditures of federal awards and state financial assistance, (c) to include our report on the schedule of expenditures of federal awards and state financial assistance in any document that contains the schedule of expenditures of federal awards and state financial assistance and that indicates that we have reported on such schedule, and (d) to present the schedule of expenditures of federal awards and state financial assistance with the audited financial statements, or if the schedule will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the schedule of expenditures of federal awards and state financial assistance no later than the date of issuance by you of the schedule and our report thereon. As part of our audit process, we will request from management and, when appropriate, those charged with governance, written confirmation concerning representations made to us in connection with the audit. We understand that your employees will prepare all confirmations we request and will locate any documents or invoices selected by us for testing. Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non-financial data. As such, it is your responsibility to maintain your original data and records and we cannot be responsible to maintain such original information. If you are missing any documents or workpapers from our prior years' engagements (if applicable), it is your responsibility to inform us. By signing this —. .. Cityof Boynton Beach M1 o,• Purchasing Division engagement letter, you affirm that you have all the data and records required to make your books and records complete. You agree to inform us of facts that may affect the financial statements of which you may become aware during the period from the date of the auditors' report to the date the financial statements are issued. Schedule of Expenditures of Federal Awards and State Financial Assistance We will subject the schedule of expenditures of federal awards and state financial assistance to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling the schedule to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on whether the schedule of expenditures of federal awards and state financial assistance is presented fairly in all material respects in relation to the financial statements as a whole. Data Collection Form Prior to the completion of our engagement, we will complete the sections of the Data Collection Form that are our responsibility. The form will summarize our audit findings, amounts and conclusions. It is management's responsibility to submit a reporting package including financial statements, schedule of expenditure of federal awards, summary schedule of prior audit findings and corrective action plan along with the Data Collection Form to the federal audit clearinghouse. The financial reporting package must be text searchable, unencrypted, and unlocked. Otherwise, the reporting package will not be accepted by the federal audit clearinghouse. We will assist you in the electronic submission and certification. You may request from us copies of our report for you to include with the reporting package submitted to pass-through entities. Per federal requirements, the Data Collection Form is required to be submitted within the earlier of 30 days after receipt of our auditors' reports or nine months after the end of the audit period, unless specifically waived by a federal cognizant or oversight agency for audits. Data Collection Forms submitted untimely are one of the factors in assessing programs at a higher risk. Group Audit Considerations Our audit will be a group audit as defined by AU-C Section 600. We have identified the Boynton Beach Community Redevelopment Agency, the City of Boynton Beach General Employees' Pension Fund, the City of Boynton Beach Police Officers' Pension Fund, and the City of Boynton Beach Firefighters' Pension Fund, as components of our group audit. Our report will not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported separately by those auditors. Those financial statements will be audited by other auditors whose reports will City of Boynton Beach Purchasing Division be furnished to us, and our opinions, insofar as they relate to the component units will be based solely on the reports of the other auditors. Communication with Those Charged with Governance At the conclusion of our audit engagement, we will communicate to those charged with governance the following significant findings from the audit: • Our view about the qualitative aspects of the entity's significant accounting practices; • Significant difficulties, if any, encountered during the audit; • Uncorrected misstatements, other than those we believe are trivial, if any; • Disagreements with management, if any; • Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process; • Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures; • Representations we requested from management; • Management's consultations with other accountants, if any; and • Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management. Auditors' Report and Reproduction We will issue a written report upon completion of our audit of the City's financial statements. Our report will be addressed to those charged with governance. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinion, add an emphasis-of- matter or other-matter paragraph(s) to our auditors' report. If for any reason, we are unable to complete the audit or we are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of the engagement. If, in our professional judgment, the circumstances require us to do so, we may resign from the engagement prior to completion. Except to the extent prohibited by law, if you intend to publish or otherwise reproduce the financial statements and/or make reference to our Firm, you agree that the City's management will provide us with a draft for our review and approval before disclosure, inclusion or incorporation by reference of any of our reports or the reference to CBIZ CPAs before such document or information is published, printed or distributed. You also agree to provide us with the final reproduced material for our approval before it is distributed. In addition, to avoid unnecessary delay or misunderstanding, you agree to provide us timely notice of your intention to issue any such document. Notwithstanding r°` City of Boynton Beach `�»•` Purchasing Division the foregoing, you may distribute the financial statements "as is," without our written consent; provided such financial statements are not inserted in any other document or are not altered or revised in any manner, including without limitation, the alteration, addition or removal of data or information to or from such financial statements. With regard to the electronic dissemination of the City's financial statements, including financial statements published electronically on the City's website, we are not required to read the information contained in those sites or to consider the consistency of other information in the electronic site with the original document. However, you agree that, except to the extent prohibited by law, you will notify CBIZ CPAs and obtain our approval prior to including any of our reports on any electronic site. Assistance By Your Personnel We will ask that your personnel, to the extent possible, prepare required schedules and analyses, and make selected invoices and other required documents available to our staff. This assistance by your personnel will serve to facilitate the progress of our work and minimize our time requirements. You agree to inform us as soon as possible, but no later than the effective date of change, of any changes to the organization structure as a result of a sale, merger, acquisition transfer or other disposition, reorganization or transaction, and any changes to individuals in directors, officers and financial reporting oversight roles. Note that in order to ensure CBIZ CPAs maintains independence with respect any new entities or individuals associated with the City, you should provide information of the upcoming change as early as possible in the process. You acknowledge that the City's confidential information may be transmitted to us through an information portal or delivery system established by us or on our behalf. You shall notify us in writing of your employees, representatives, or other agents to be provided access to such portal or system; upon the termination of such status, you shall immediately notify us in writing. Background Checks As a matter of our Firm policy, we perform background checks on potential clients and/or on existing clients, on an as-determined basis. The terms and conditions of this engagement are expressly contingent upon the satisfactory completion of our investigatory procedures and we reserve the right to withdraw from any relationship should information which we deem to be adverse come to our attention. The results of all background checks and other investigatory procedures are submitted to, and reviewed by, our firm's Client Acceptance Committee. Independence Professional standards require that a firm and its members maintain independence throughout the duration of the professional relationship with a client. CBIZ CPAs will periodically reevaluate the Firm's independence as part of our customary client continuance process or more frequently, should circumstances arise that may require us '6 City of Boynton Beach Purchasing Division to investigate whether CBIZ CPAs' independence may have been impaired in which case CBIZ CPAs may terminate and resign from this engagement in our sole and absolute discretion. You agree to promptly advise us of any matters or changes in circumstances that could affect our independence or give rise to conflicts including, changes in senior management or the Elected Body, or entities that may have preexisting relationships with CBIZ CPAs or conflicts that could affect our independence. Also, in order to preserve the integrity of our relationship, no offer of employment shall be discussed with any CBIZ CPAs professionals assigned to the audit, including within the one-year period prior to the commencement of the year-end audit, and through the date of issuance of our audit report. Pursuant to professional standards, should such an offer of employment be made, or employment commences during the indicated time period, we will consider this an indication that our independence has been compromised. As such, we may be required to recall our auditors' report due to our lack of independence. In the event additional work is required to satisfy independence requirements, such work will be billed at our standard hourly rates. Access to Working Papers; Confidentiality CBIZ CPAs is periodically required to undergo inspection processes in accordance with legal, regulatory, professional and/or administrative bodies or authorities. During the course of these processes, selected working papers and financial reports, on a sample basis, will be inspected by an outside party on a confidential basis. Consequently, the accounting work we performed for you may be selected. Your signature below represents your acknowledgement and permission to allow such access should your engagement be selected for review. The City acknowledges and agrees that CBIZ CPAs may disclose confidential information as permitted herein, as requested or directed by you or consistent with applicable law, rule, regulation, professional standards or guidelines or in connection with or to respond to its professional obligations. You authorize CBIZ CPAs to participate in discussions with and to disclose your information to your agents, representatives, administrators or professional advisors (including accountants, attorneys, financial and other professional advisors), their respective officers, directors or employees, and other parties as you may direct. Notwithstanding any other provision of this agreement, CBIZ CPAs and the CBIZ CPAs subcontractors (defined below) may use confidential information received hereunder, to develop, enhance, modify and improve technologies, tools, methodologies, services and offerings, and/or for development or performance of data analysis or other insight generation. Information developed in connection with these purposes may be used or disclosed to you or current or prospective clients to provide them services or offerings. CBIZ CPAs and the CBIZ CPAs subcontractors will not use or disclose confidential information in a way that would permit you to be identified by third parties without your consent. The foregoing consents are valid until further notice by you. As a result of our prior or future services to you, we may be required or requested to provide information or documents to you or a third-party in connection with a legal or administrative proceeding (including a grand jury investigation) in which we are not a OLf City of Boynton Beach Purchasing Division party. If this occurs, we shall be entitled to compensation for our time and reimbursement for our reasonable out-of-pocket expenditures (including legal fees) in complying with such request or demand. This is not intended, however, to relieve us of our duty to observe the confidentiality requirements of our profession. Nothing in this letter is intended to limit your rights and obligations pursuant to the Florida "Sunshine Law", Florida Statute 286.011. The audit documentation and working papers prepared in conjunction with our engagement are the property of CBIZ CPAs and constitute confidential information. These working papers will be retained by us in accordance with applicable laws and with our Firm's policies and procedures. However, we may be required, by law or regulation, to make certain working papers available to regulatory authorities, federal agencies and/or the U.S. Government Accountability Office, for their review, and upon request, we may be required to provide such authorities with photocopies of selected working papers. If requested, access to such audit documentation will be provided under the supervision of CBIZ CPAs' personnel. The regulators and agencies may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We agree to retain our audit documentation or work papers for a period of at least seven (7) years from the date of our report. Regarding the application of Chapter 119 (Public Records), Florida Statutes, the Custodian of public records for this contract is: City Clerk City of Boynton Beach 100 E. Ocean Avenue, Boynton Beach, FL 33435 (561) 742-6060 Third-Party Service Providers CBIZ CPAs may use or subcontract the services to its affiliates, subsidiaries, CBIZ CPAs related parties and/or third parties, including contractors, subcontractors and cloud-based service providers, in each case within or outside of the United States (each, a "subcontractor") in connection with the provision of services and/or for internal, administrative and/or regulatory compliance purposes. You agree that CBIZ CPAs may provide confidential and other information CBIZ CPAs receives in connection with this agreement to subcontractors for such purposes. CBIZ CPAs maintains internal policies, procedures and safeguards to protect the confidentiality of your information and CBIZ CPAs will remain responsible to you for the protection of such information and services performed by such subcontractors as provided herein. o " 4 City of Boynton Beach Purchasing Division Termination CBIZ CPAs' engagement ends on the earlier of termination or resignation (including without limitation, our declining to issue a report or other work product) or CBIZ CPAs' delivery of its report. We acknowledge your right to terminate our services at any time, and you acknowledge our right to terminate our services and this agreement and resign at any time in our sole and absolute discretion, subject in either case to our right to payment for all direct and indirect charges including out-of-pocket expenses incurred through the date of termination or resignation or thereafter as circumstances and this agreement may require, plus applicable interest, costs, fees and attorneys' fees. All terms which by their nature are reasonably intended to survive will survive termination, resignation or expiration. Dispute Resolution Procedure, Waiver of Jury Trial and Jurisdiction and Venue for Any and All Disputes Under This Engagement Letter and Governing Law AS A MATERIAL INDUCEMENT FOR US TO ACCEPT THIS ENGAGEMENT AND/OR RENDER THE SERVICES TO THE CITY OF BOYNTON BEACH IN ACCORDANCE WITH THE PROVISIONS OF THIS ENGAGEMENT LETTER: The Firm and the Client each hereby knowingly, voluntarily and intentionally waive any right either may have to a trial by jury with respect to any litigation based hereon, or arising out of, under or in connection with this engagement letter and/or the services provided hereunder, or any course of conduct, course of dealing, statements (whether verbal or written) or actions of either party. In any litigation brought by either the Firm or the Client, the prevailing party shall be entitled to an award of its reasonable attorneys' fees and costs incurred, including through all appeals. Limitation of Liability You agree that our liability arising from or relating to our services shall not exceed the total amount paid by you for the services described herein. This shall be your exclusive remedy. to, City of Boynton Beach Purchasing Division No action, regardless of form, arising out of the services under this agreement may be brought by you more than one year after the date the last services are provided under this agreement. The Client hereby indemnifies CBIZ CPAs and its shareholders, principals, and employees, and holds them harmless from all claims, liabilities, losses and costs arising in circumstances where there has been a known misrepresentation by a member of the Client's management, regardless of whether such person was acting in the Client's interest. This indemnification will survive completion or termination of this agreement. Non-Attest Services We will not assume management responsibilities on behalf of the City. However, we will provide advice and recommendations to assist management of the City in performing its responsibilities. The City's management is responsible for (a) making all management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. We are prohibited by professional standards from preparing source documents and authorizing or approving transactions. Accordingly, management must determine and approve all transactions including appropriate account classifications. As part of our engagement, we may propose standard, adjusting or correcting journal entries to the financial statements. You are responsible for reviewing the entries and understanding the nature of any proposed entries and the impact they have on the financial statements. The services cannot be relied on to detect errors, fraud or illegal acts that may exist. However, we will inform you of any material errors, fraud or illegal acts that come to our attention, unless they are clearly inconsequential. In addition, we have no responsibility to identify and communicate significant deficiencies or material weaknesses in the City's internal control as part of a non-attest/non-audit service engagement. We will perform the following services that are considered non-attest services: (.. �. City of Boynton Beach ��.•• Purchasing Division • Assistance with the preparation of the financial statements. • Preparation of the Data Collection Form (DCF) Our responsibilities and limitations of the non-attest services are as follows: • We will perform the services in accordance with applicable professional standards. • The non-attest services are limited to the services previously outlined. Our firm, in its sole professional judgment, reserves the right to refuse to do any procedure or take any action that could be construed as making management decisions or assuming management responsibilities, including determining account coding and approving journal entries. • These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. Other Services We are always available to meet with you and/or other executives at various times throughout the year to discuss current business, operational, accounting and auditing matters affecting the City. Whenever you feel such meetings are desirable please let us know; we are prepared to provide services to assist you in any of these areas. We will also be pleased, at your request, to attend the meetings of the City. During the course of this engagement, CBIZ CPAs may offer certain value-added resources to the City, including without limitation, local and national educational webinars and events, subscription to CBIZ CPAs thought leadership publications such as industry and insights newsletters, industry surveys and trend analysis, and academic reports into the prevailing economic outlook. The use, receipt of, and payment for (where applicable) these resources will be subject to the mutual agreement of CBIZ CPAs and the City. The City confirms that the use and receipt of these resources, as applicable, is approved by those charged with governance. You acknowledge that you are responsible for the actions of your current and former employees, representatives, or other agents in connection with the transmission of your ro City of Boynton Beach Purchasing Division information. During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you understand that communication in those mediums involves a risk of misdirected or intercepted communications. CBIZ CPAs shall be obligated only for the services or work specified in this agreement. Any other services that may be required or requested by City will be agreed upon by the parties in a separate, new specific engagement letter for such service or work. 218.415, Florida Statutes, Local Government Investment Policies We will perform, in accordance with Chapter 10.550, Rules of the Auditor General of the State of Florida, an examination pursuant to AICPA Professional Standards, promulgated by the American Institute of Certified Public Accountants regarding the compliance of the City with 218.415, Florida Statutes, Local Government Investment Policies. There is no additional cost for this service. Because of the inherent limitations of an examination engagement, together with the inherent limitations of internal control, an unavoidable risk exists that some material misstatements may not be detected, even though the examination is properly planned and performed in accordance with the attestation standards. At the conclusion of the examination engagement, you agree to provide us with certain written representations in the form of a representation letter. Fees Our fees will be based on the services to be provided hereunder, the timeliness and completeness of the information and documentation provided to us, firm technology, firm processes, and time required of personnel at our standard hourly rates. Our hourly rates vary according to the level of the personnel assigned to your audit. Fees for this engagement are noted on Appendix B. %64,. V City of Boynton Beach Purchasing Division Our invoices for these fees will be rendered as the work progresses, and are due and payable upon presentation. In the event that you dispute any of the fees or expenses on a specific invoice, you agree to notify us within twenty (20) days of receipt of the invoice of such dispute. If you fail to notify us within the twenty (20) day period, your right to dispute such invoice will be waived. Prior to the commencement of the services described above, any past due balances are required to be paid in full. In accordance with our Firm policies, should any invoice remain unpaid for more than thirty (30) days, we reserve the right to defer providing any additional services until all outstanding invoices are paid in full. Invoice amounts due past sixty (60) days will incur a finance charge of 1% per month. Nothing herein shall be construed as extending the due date of payments required under this agreement, and you agree that we are not responsible for the impact on the City of any delay that results from such non-payment by you. Agreement This letter comprises the complete and exclusive statement of the agreement between the parties, superseding all proposals oral or written and all other communications between the parties. If it is determined that any provision of this letter is unenforceable, all other provisions shall remain in full force and effect. This letter comprises the complete and exclusive statement of the agreement between the parties, superseding all proposals oral or written and all other communications between the parties. The City may not assign or transfer this agreement, or any rights, licenses, obligations, claims or proceeds from claims arising out of or in any way relating to this agreement, any services provided hereunder, or any fees for services to anyone, by operation of law or otherwise without CBIZ CPAs' prior written consent and any assignment without consent shall be void and invalid. CBIZ CPAs may assign this agreement, including all the rights and benefits hereunder, to any affiliate or acquirer of or successor to its business, or purchaser of all or substantially all of its assets, stock or interests or in the event of a reorganization or restructuring, and by your signature hereto, you consent to such assignment and the transfer of the City's files and information. It is hereby understood and agreed that this engagement is being undertaken solely for the benefit of the Client and that no other person or entity shall be authorized to enforce the terms of this engagement. The undersigned represents and warrants that it has the requisite authority and consents to enter into and perform this Agreement and the obligations herein for and on behalf of the City. By executing this Agreement, you confirm, represent and warrant that (i) no person who is the target of sanctions imposed by the United States, European Union, or United Kingdom owns, directly or indirectly, 5% or more of any type of stock or other ownership 0016 City of Boynton Beach Purchasing Division interest of the Company and (ii) the Company is not, and does not have subsidiaries that are, located or organized under the laws of Russia, and CBIZ CPAs' Services are not performed for the benefit or use of or reliance on by any of the foregoing. City of Boynton Beach - Purchasing Division If you agree with the terms of our engagement, as described in this letter, please sign this PDF version of the engagement letter and return it to us by email and we will send you a fully executed copy. Moises D. Ariza, CPA, CGMA is the Shareholder and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. In accordance with the requirements of Government Auditing Standards, our latest external peer review report of our Firm is available upon request. Very truly yours, CBIZ CPAs P.C. � 4 :34());1 Moises D. Ariza, CPA, CGMA Shareholder City of Boynton Beach Purchasing Division ACCEPTED This letter correctly sets forth the agreement of City of Boynton Beach, Florida Authorized signature: -11 ' -ammb !7///2(.. Zy Name: Ty ?cr -gam ,-160 N TO/vNt Title: _ ; Q�G��PORgjF.�F`"91�1 SEAL • •=�; i INCORPORATED, i Date signed: '2/It/ 'i, f•., 1920 ; .FLOR�� ' CITY ATTORNEY'S OFFICE Approv as to form lty By: /.�( �` G(/� 0 Cit of Boynton Beach 0y City y e Purchasing Division APPENDIX A City of Boynton Beach, Florida Circumstances Affecting Timing and Fee Estimate The estimated fee is based on certain assumptions. Circumstances may arise during the engagement that may significantly affect the targeted completion dates and our fee estimate. As a result, additional fees may be necessary. Such circumstances include but are not limited to the following: 1. Changes to the timing of the engagement at your request. Changes to the timing of the engagement usually require reassignment of personnel used by CBIZ CPAs in the performance of services hereunder. However, because it is often difficult to reassign individuals to other engagements, CBIZ CPAs may incur significant unanticipated costs. 2. All requested schedules are not (a) provided by the accounting personnel on the date requested, (b) completed in a format acceptable to CBIZ CPAs (c) mathematically correct, or (d) in agreement with the appropriate underlying records (e.g., general ledger accounts). CBIZ CPAs will provide the accounting personnel with a separate listing of required schedules and deadlines. 3. Weaknesses in the internal control structure. 4. Significant new issues or unforeseen circumstances as follows: a. New accounting issues that require an unusual amount of time to resolve. b. Changes or transactions that occur prior to the issuance of our report. c. Changes in the City's accounting personnel, their responsibilities, or their availability. d. Changes in auditing requirements set by regulators. 5. Significant delays in the accounting personnel's assistance in the engagement or delays by them in reconciling variances as requested by CBIZ CPAs. All invoices, contracts and other documents which we will identify for the City, are not located by the accounting personnel or made ready for our easy access. 6. A significant level of proposed audit adjustments are identified during our audit. 7. Changes in audit scope caused by events that are beyond our control. 8. Untimely payment of our invoices as they are rendered. City of Boynton Beach Purchasing Division APPENDIX B ANNUAL PRICE FOR AUDIT SERVICES Proposers should use this form for submitting its Fee Proposal.The following pncing is submitted as-all inclusive`to provide financial advisory,services in accordance with the requirements identified in this Scope of Work and as set forth in this RFP document 'The grand total price will be used to calculate the number of points using the formula described in SECTION IV— EVALUATION OF PROPOSALS. Audit Estimated Fee Estimated Fee Estimated Fee Estimated Fee Estimated Fee Grand Total 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 Financial Statement Aud: $130.000.0000 $132,000.0000 $134,000.0000 $136.000.0000 $136.000.0000 $670.000.00 Federal and state single audits 50.0000 $0.0000 $0.0000 $00000 $0.0000 $0.00 Subtotal: $670,000.00 Schedule of Professional Hourly Fees for Auditing Services Proposers should use this form for submitting its Fee Proposal The following pricing is submitted as'all inclusive-to provide financial advisory services in accordance with the requirements identified in this Scope of Work and as set forth in this RFP document. r We will not be submitting for Schedule of Professional Hourly Fees for Auditing Services Line Item AUDIT STAFF POSRION Hourly Rates Comments 1 Partners $400.0000 2 Managers 3300.0000 3 Supervisory Staff 5200.0000 4 Staff $150.0000 5 Other $375D000 Duality Cont% Director (specify in comments) Summary Table Bid Fonn Amount ANNUAL PRICE FOR AUDIT SERVICES $670.000.00 Subtotal Contract Arnoutt: $670.000.00 Bid Number FIN25-001R Vendor Name Marcum LLP City of Boynton Beach •`" Purchasing Division EXHIBIT C FEE SCHEDULE ANNUAL PRICE FOR AUDIT SERVICES Proposers should use this fomi for submitting its Fee Proposal The following pricing is submitted as"all inclusive`to provide financial advisory services in accordance with the requirements identified in this Scope of Work and as set forth in this RFP document. •The grand total price will be used to calculate the number of points using the formula described in SECTION IV— EVALUATION OF PROPOSALS. Audit Services Estimated Fee Estimated Fee Estimated Fee Estimated Fee Estimated Fee Grand Total 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 Financial Statement Audit S130,000.0000 $132,000.0000 $134,000.0000 $136.000.0000 $138.000.0000 $670,000.00 Federal and state single audits $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.00 Subtotal: $670.000.00 Schedule of Professional Hourly Fees for Auditing Services Proposers should use this form for submitting its Fee Proposal.The following pricing is submitted as"all inclusive"to provide financial advisory services in accordance with the requirements identified in this Scope of Work and as set forth in this RFP document. r We will not be submitting for Schedule of Professional Hourly Fees for Auditing Services Lk*Item AUDIT STAFF POSITION Hourly Rates' Comments 1 Partners $400.0000 2 Managers $300.0000 3 Supervisory Staff $200.0000 4 Staff $150.0000 5 Other $375.0000 Ouaity Contra' Director (specify in comments) Summary Table Bid Form ,Amount ANNUAL PRICE FOR AUDIT SERVICES $670.000.00 Subtotal Contract Amount: $670,000.00 Bid Number FIN25-001 R Vendor Name: Marcum LLP � 'Cit of Boynton Beach Purchasing Division City of Boynton Beach Risk Management INSURANCE ADVISORY FORM Under the terms and conditions of all contracts, leases, and agreements, the City requires appropriate coverages listing the City of Boynton Beach as Additional Insured. This is done by providing a Certificate of Insurance listing the City as "Certificate Holder"and"The City of Boynton Beach is Additional Insured as respect to coverages noted." Insurance companies providing insurance coverages must have a current rating by A.M. Best Co.of"B+"or higher. (NOTE:An insurance contract or binder may be accepted as proof of insurance if Certificate is provided upon selection of vendor.) Thefollowing is a list of types of insurance required of contractors, lessees, etc., and the limits required by the City: (NOTE: This list is not all inclusive, and the City reserves the right to require additional types of insurance, or to raise orlower the stated limits, based upon identified risk.) TYPE(Occurrence Based Only) MINIMUM LIMITS REQUIRED General Liability General Aggregate $ 1,000,000.00 Commercial General Liability Products-Comp/Op Agg. $ 1,000,000.00 Owners &Contractor's Protective (OCP) Personal&Adv. Injury $ 1,000,000.00 Asbestos Abatement Each Occurrence $ 1,000,000.00 Lead Abatement Fire Damage(any one fire) $ 50,000.00 Broad Form Vendors Med. Expense(any one person) $ 5,000.00 Premises Operations Underground Explosion&CollapseProducts Completed Operations Contractual Independent Contractors Fire Legal Liability Professional Liability Aggregate-$1,000,000.00 Automobile Liability Combined Single Limit $ 1,000,000.00 Any Auto All Owned Autos Hired Autos Non-Owned Autos Excess Liability Each Occurrence to be determined Property: Umbrella Form Aggregate to be determined Revocable Permit Worker's Compensation Statutory Limits $ Employer's Liability Each Accident $ 1,000,000.00 Disease, Policy Limit $ 1,000,000.00 Disease Each Employee $ 1,000,000.00 300,000.00 Builder's Risk Limits based on Project Cost Installation Floater Limits based on Project Cost Other-As Risk Identified to be determined Revised 04 CBIZ CPAs P.C. iC B I Z CPAs 525 Okeechobee Boulevard Suite 750 West Palm Beach, FL 33401 P.561.653.7300 November 22, 2024 City of Boynton Beach, Florida Attn: Mr. Dan Dugger, City Manager and Mr. Peter V. Kajokas, Finance Director 100 E. Ocean Avenue Boynton Beach, Florida 33435 You have requested that we audit the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Boynton Beach, Florida("the City", "Client,""you"or"your"), as of September 30, 2024, and for the fiscal year then ended, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. We are pleased to confirm our understanding of the terms and objectives of our engagement and the nature and limitations of the services CBIZ CPAs P.C. ("CBIZ CPAs," the "Firm,""we," "us" or"our") will provide for the fiscal years ended September 30, 2024 through September 30, 2028. Our audit will be conducted with the objectives of our expressing an opinion on each opinion unit. The objectives of our audit of the financial statements are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. The procedures selected depend on the auditors'judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual agreements. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the United States of America (GAAS) and in accordance with Government Auditing Standards will always detect a material misstatement when it exists. Misstatements, including omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. Accounting principles generally accepted in the United States of America, (U.S. GAAP,) as promulgated by the Governmental Accounting Standards Board (GASB) require that management's discussion and analysis (MD&A), the budgetary comparison schedules for the General Fund and Boynton Beach CRA Special Revenue Fund, and various pension and other post-employment benefits (OPEB) schedules, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board,who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. As part of our engagement, we will apply certain limited procedures to the required supplementary information (RSI) in accordance with auditing standards generally In certain jurisdictions,CBIZ CPAs P.0 operates under its previous name,Mayer Hoffman McCann P.0 CBIZCPAS.COM City of Boynton Beach, Florida November 22, 2024 Page 2 accepted in the United States of America. These limited procedures will consist primarily of inquiries of management regarding their methods of measurement and presentation, and comparing the information for consistency with management's responses to our inquiries. We will not express an opinion or provide any form of assurance on the RSI. The following RSI is required by accounting principles generally accepted in the United States of America. This RSI will be subjected to certain limited procedures but will not be audited: • Management's Discussion and Analysis • Budget Comparison Schedule—General Fund • Budget Comparison Schedule—CRA Special Revenue Fund • Pension Information (Schedule of Changes in Net Pension Liability (Asset) and Related Ratios, Schedule of City Contributions, Schedule of Investment Returns) • Other Postemployment Benefit(OPEB) Information (Schedule of Changes in the Total OPEB Liability and Related Ratios) Supplementary information other than RSI will accompany the City's basic financial statements. We will subject the following supplementary information to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling the supplementary information to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on the following supplementary information in relation to the financial statements as a whole: • Combining and individual fund financial statements • Schedule of expenditures of federal awards and state financial assistance, if applicable Also, the document we submit to you will include the following other additional information that will not be subjected to the auditing procedures applied in our audit of the financial statements. Management of the City is responsible for the other information included in the annual report. Our opinions on the basic financial statements do not cover the other information listed below, and we do not express an opinion or any form of assurance thereon: • Introductory Section • Statistical Section It is our understanding that our auditors' report will be included in your annual report which is comprised of the annual comprehensive financial report (ACFR) and that this annual report will be issued by within nine (9) months after fiscal year end. Audit of the Financial Statements We will conduct our audits in accordance GAAS, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States of America; and the audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) City of Boynton Beach, Florida November 22, 2024 Page 3 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance)and in accordance with Chapter 10.550,Rules of the Auditor General. As part of an audit of financial statements in accordance with GAAS, Government Auditing Standards, and Chapter 10.550, Rules of the Auditor General, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. However,we will communicate to you in writing concerning any significant deficiencies or material weaknesses in internal control relevant to the audit of the financial statements that we have identified during the audit. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. • Conclude, based on the audit evidence obtained, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Client's ability to continue as a going concern for a reasonable period of time. Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that some material misstatements or noncompliance may not be detected exists, even though the audit is properly planned and performed in accordance with GAAS, Government Auditing Standards of the Comptroller General of the United States of America and in accordance with Chapter 10.550, Rules of the Auditor General. Please note that the determination of abuse is subjective and Government Auditing Standards does not require auditors to detect abuse. Our responsibility as auditors is limited to the period covered by our audit and does not extend to any other periods. We will issue a written report upon completion of our audit of the City's basic financial statements. Our report will be addressed to the governing body of the City. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances,it may be necessary for us to modify our opinions, add an emphasis-of-matter or other-matter paragraph(s) to our auditors' report, or if necessary, withdraw from the engagement. If our opinions on the basic financial statements are other than unmodified, we will discuss the reasons with you in advance. If, for any reason, we are unable to City of Boynton Beach, Florida November 22, 2024 Page 4 complete the audit or are unable to form or have not formed opinions, we may decline to express opinions or to issue a report as a result of this engagement. In accordance with the requirements of Government Auditing Standards, we will also issue a written report describing the scope of our testing over internal control over financial reporting and over compliance with laws, regulations, and provisions of grants and contracts, including the results of that testing. However, providing an opinion on internal control and compliance over financial reporting will not be an objective of the audit and, therefore, no such opinion will be expressed. In addition, if the auditing thresholds are met, we will audit the City's compliance over major federal award and state programs for the fiscal years ended September 30,2024 through September 30, 2028. Our audit will be conducted with the objectives of our expressing an and an opinion on compliance regarding the entity's major federal and state awards. The objectives of our compliance audit is to obtain sufficient appropriate audit evidence to form an opinion and report at the level specified in the governmental audit requirement about whether the entity complied in all material respects with the applicable compliance requirements and identify audit and reporting requirements specified in the governmental audit requirement that are supplementary to GAAS and Government Auditing Standards, if any, and perform procedures to address those requirements. Audit of Major Program Compliance If auditing thresholds are met, our audit of the City's major federal and state award programs compliance will be conducted in accordance with the requirements of the Florida Single Audit Act, as amended; and the Uniform Guidance, and will include tests of accounting records, a determination of major programs in accordance with the Uniform Guidance, Florida Single Audit Act and other procedures we consider necessary to enable us to express such an opinion on major federal and state award program compliance and to render the required reports. We cannot provide assurance that an unmodified opinion on compliance will be expressed. Circumstances may arise in which it is necessary for us to modify our opinion or withdraw from the engagement. The Uniform Guidance and the Florida Single Audit Act requires that we also plan and perform the audit to obtain reasonable assurance about whether material noncompliance with applicable laws and regulations, the provisions of contracts and grant agreements applicable to major federal and state award programs, and the applicable compliance requirements occurred, whether due to fraud or error, and express an opinion on the entity's compliance based on the audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, the Uniform Guidance, and Florida Single Audit Act,will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements is considered material if there is a substantial likelihood that, individually or in the City of Boynton Beach, Florida November 22, 2024 Page 5 aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the entity's compliance with the requirements of the federal and state programs as a whole. As part of a compliance audit in accordance with GAAS, Government Auditing Standards, and the Florida Single Audit Act,we exercise professional judgment and maintain professional skepticism throughout the audit. We also identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Our procedures will consist of determining major federal and state programs and, performing the applicable procedures described in the U.S. Office of Management and Budget OMB Compliance Supplement for the types of compliance requirements that could have a direct and material effect on each of the entity's major programs, and performing such other procedures as we considers necessary in the circumstances. The purpose of those procedures will be to express an opinion on the entity's compliance with requirements applicable to each of its major programs in our report on compliance issued pursuant to the Uniform Guidance and Florida Single Audit Act. Also, as required by the Uniform Guidance and Florida Single Audit Act, we will obtain an understanding of the entity's internal control over compliance relevant to the audit in order to design and perform tests of controls to evaluate the effectiveness of the design and operation of controls that we consider relevant to preventing or detecting material noncompliance with compliance requirements applicable to each of the entity's major federal and state award programs. Our tests will be less in scope than would be necessary to render an opinion on these controls and, accordingly, no opinion will be expressed in our report. However, we will communicate to you, regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we have identified during the audit. We will issue a report on compliance that will include an opinion or disclaimer of opinion regarding the entity's major federal and state award programs, and a report on internal controls over compliance that will report any significant deficiencies and material weaknesses identified; however, such report will not express an opinion on internal control. Significant Risks AU-C Section 260, prescribed by the American Institute of Certified Public Accountants, is a comprehensive guide for the auditor's communication with those charged with governance. AU- C Section 260 points out that communicating significant risks, including fraud risks, helps those charged with governance understand those matters and better allows them to perform their oversight duties with regard to the financial reporting process. We have identified the following significant risks of material misstatement as part of our audit planning, and are available to discuss these with you during the course of our audit: • Management override of internal controls. • Improper revenue recognition. City of Boynton Beach, Florida November 22, 2024 Page 6 Management's Responsibilities Our audit will be conducted on the basis that management and, when appropriate, those charged with governance acknowledge and understand that they have responsibility: 1. For the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America; 2. For the design, implementation,and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error; 3. For identifying, in its accounts, all federal awards and state received and expended during the period and the federal and state programs under which they were received; 4. For maintaining records that adequately identify the source and application of funds for federally funded activities; 5. For preparing the schedule of expenditures of federal and state awards (including notes and noncash assistance received) in accordance with the Uniform Guidance and Florida Single Audit Act; 6. For designing, implementing, and maintaining effective internal control over federal awards that provides reasonable assurance that the entity is managing federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards; 7. For identifying and ensuring that the entity complies with federal laws, statutes, regulations, rules, provisions of contracts or grant agreements, and the terms and conditions of federal and state award programs, and implementing systems designed to achieve compliance with applicable federal and state statutes,regulations, and the terms and conditions of federal award and state programs; 8. For disclosing accurately, currently, and completely the financial results of each federal award and state in accordance with the requirements of the award; 9. For identifying and providing report copies of previous audits, attestation engagements, or other studies that directly relate to the objectives of the audit, including whether related recommendations have been implemented; 10. For taking prompt action when instances of noncompliance are identified; 11. For addressing the findings and recommendations of auditors,for establishing and maintaining a process to track the status of such findings and recommendations and taking corrective action on reported audit findings from prior periods and preparing a summary schedule of prior audit findings; 12. For following up and taking corrective action on current year audit findings and preparing a corrective action plan for such findings; 13. For submitting the reporting package and data collection form to the appropriate parties; 14. For making the auditor aware of any significant contractor relationships where the contractor is responsible for program compliance; 15. To provide us with: a. Access to all information of which management is aware that is relevant to the preparation and fair presentation of the financial statements including the disclosures, and relevant to federal and state award programs, such as records, documentation, and other matters; b. Additional information that we may request from management for the purpose of the audit; City of Boynton Beach, Florida November 22, 2024 Page 7 c. Unrestricted access to persons within the entity and others from whom we determine it necessary to obtain audit evidence; d. A written acknowledgement of all the documents that management expects to issue that will be included in the annual report and the planned timing and method of issuance of that annual report;and e. A final version of the annual report (including all the documents that, together, comprise the annual report) in a timely manner prior to the date of the auditors' report. 16. For adjusting the financial statements to correct material misstatements and confirming to us in the management representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the current year period(s) under audit are immaterial, both individually and in the aggregate, to the financial statements as a whole; 17. For acceptance of non-attest services, including identifying the proper party to oversee non- attest work; 18. For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets; 19. For informing us of any known or suspected fraud affecting the entity involving management, employees with significant role in internal control and others where fraud could have a material effect on compliance; 20. For the accuracy and completeness of all information provided; 21. For taking reasonable measures to safeguard protected personally identifiable and other sensitive information; and 22. For confirming your understanding of your responsibilities as defined in this letter to us in your management representation letter. With regard to the schedule of expenditures of federal awards and state financial assistance, you acknowledge and understand your responsibility (a) for the preparation of the schedule of expenditures of federal awards and state financial assistance in accordance with the Uniform Guidance and Florida Single Audit Act, (b) to provide us with the appropriate written representations regarding the schedule of expenditures of federal awards and state financial assistance, (c) to include our report on the schedule of expenditures of federal awards and state financial assistance in any document that contains the schedule of expenditures of federal awards and state financial assistance and that indicates that we have reported on such schedule, and (d) to present the schedule of expenditures of federal awards and state financial assistance with the audited financial statements, or if the schedule will not be presented with the audited financial statements, to make the audited financial statements readily available to the intended users of the schedule of expenditures of federal awards and state financial assistance no later than the date of issuance by you of the schedule and our report thereon. As part of our audit process, we will request from management and, when appropriate, those charged with governance, written confirmation concerning representations made to us in connection with the audit. City of Boynton Beach, Florida November 22, 2024 Page 8 We understand that your employees will prepare all confirmations we request and will locate any documents or invoices selected by us for testing. Professional standards prohibit us from being the sole host and/or the sole storage for your financial and non-financial data. As such, it is your responsibility to maintain your original data and records and we cannot be responsible to maintain such original information. If you are missing any documents or workpapers from our prior years' engagements (if applicable), it is your responsibility to inform us. By signing this engagement letter, you affirm that you have all the data and records required to make your books and records complete. You agree to inform us of facts that may affect the financial statements of which you may become aware during the period from the date of the auditors' report to the date the financial statements are issued. Schedule of Expenditures of Federal Awards and State Financial Assistance We will subject the schedule of expenditures of federal awards and state financial assistance to the auditing procedures applied in our audit of the basic financial statements and certain additional procedures, including comparing and reconciling the schedule to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and additional procedures in accordance with auditing standards generally accepted in the United States of America. We intend to provide an opinion on whether the schedule of expenditures of federal awards and state financial assistance is presented fairly in all material respects in relation to the financial statements as a whole. Data Collection Form Prior to the completion of our engagement, we will complete the sections of the Data Collection Form that are our responsibility. The form will summarize our audit findings, amounts and conclusions. It is management's responsibility to submit a reporting package including financial statements, schedule of expenditure of federal awards, summary schedule of prior audit findings and corrective action plan along with the Data Collection Form to the federal audit clearinghouse. The financial reporting package must be text searchable, unencrypted, and unlocked. Otherwise,the reporting package will not be accepted by the federal audit clearinghouse. We will assist you in the electronic submission and certification. You may request from us copies of our report for you to include with the reporting package submitted to pass-through entities. Per federal requirements, the Data Collection Form is required to be submitted within the earlier of 30 days after receipt of our auditors' reports or nine months after the end of the audit period, unless specifically waived by a federal cognizant or oversight agency for audits. Data Collection Forms submitted untimely are one of the factors in assessing programs at a higher risk. City of Boynton Beach, Florida November 22, 2024 Page 9 Group Audit Considerations Our audit will be a group audit as defined by AU-C Section 600. We have identified the Boynton Beach Community Redevelopment Agency, the City of Boynton Beach General Employees' Pension Fund, the City of Boynton Beach Police Officers' Pension Fund, and the City of Boynton Beach Firefighters' Pension Fund, as components of our group audit. Our report will not include the results of the other auditors' testing of internal control over financial reporting or compliance and other matters that are reported separately by those auditors. Those financial statements will be audited by other auditors whose reports will be furnished to us, and our opinions, insofar as they relate to the component units will be based solely on the reports of the other auditors. Communication with Those Charged with Governance At the conclusion of our audit engagement,we will communicate to those charged with governance the following significant findings from the audit: • Our view about the qualitative aspects of the entity's significant accounting practices; • Significant difficulties, if any, encountered during the audit; • Uncorrected misstatements, other than those we believe are trivial, if any; • Disagreements with management, if any; • Other findings or issues, if any, arising from the audit that are, in our professional judgment, significant and relevant to those charged with governance regarding their oversight of the financial reporting process; • Material, corrected misstatements that were brought to the attention of management as a result of our audit procedures; • Representations we requested from management; • Management's consultations with other accountants, if any; and • Significant issues, if any, arising from the audit that were discussed, or the subject of correspondence, with management. Auditors' Report and Reproduction We will issue a written report upon completion of our audit of the City's financial statements. Our report will be addressed to those charged with governance. Circumstances may arise in which our report may differ from its expected form and content based on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to modify our opinion, add an emphasis-of-matter or other-matter paragraph(s) to our auditors' report. If for any reason, we are unable to complete the audit or we are unable to form or have not formed an opinion, we may decline to express an opinion or decline to issue a report as a result of the engagement. If, in our professional judgment, the circumstances require us to do so, we may resign from the engagement prior to completion. City of Boynton Beach, Florida November 22, 2024 Page 10 Except to the extent prohibited by law, if you intend to publish or otherwise reproduce the financial statements and/or make reference to our Firm, you agree that the City's management will provide us with a draft for our review and approval before disclosure, inclusion or incorporation by reference of any of our reports or the reference to CBIZ CPAs before such document or information is published,printed or distributed. You also agree to provide us with the final reproduced material for our approval before it is distributed. In addition, to avoid unnecessary delay or misunderstanding, you agree to provide us timely notice of your intention to issue any such document. Notwithstanding the foregoing, you may distribute the financial statements "as is," without our written consent; provided such financial statements are not inserted in any other document or are not altered or revised in any manner, including without limitation, the alteration, addition or removal of data or information to or from such financial statements. With regard to the electronic dissemination of the City's financial statements, including financial statements published electronically on the City's website, we are not required to read the information contained in those sites or to consider the consistency of other information in the electronic site with the original document. However,you agree that,except to the extent prohibited by law, you will notify CBIZ CPAs and obtain our approval prior to including any of our reports on any electronic site. Assistance By Your Personnel We will ask that your personnel, to the extent possible, prepare required schedules and analyses, and make selected invoices and other required documents available to our staff. This assistance by your personnel will serve to facilitate the progress of our work and minimize our time requirements. You agree to inform us as soon as possible, but no later than the effective date of change, of any changes to the organization structure as a result of a sale, merger, acquisition transfer or other disposition,reorganization or transaction, and any changes to individuals in directors, officers and financial reporting oversight roles. Note that in order to ensure CBIZ CPAs maintains independence with respect any new entities or individuals associated with the City, you should provide information of the upcoming change as early as possible in the process. You acknowledge that the City's confidential information may be transmitted to us through an information portal or delivery system established by us or on our behalf. You shall notify us in writing of your employees, representatives, or other agents to be provided access to such portal or system; upon the termination of such status, you shall immediately notify us in writing. Background Checks As a matter of our Firm policy, we perform background checks on potential clients and/or on existing clients, on an as-determined basis. The terms and conditions of this engagement are expressly contingent upon the satisfactory completion of our investigatory procedures and we reserve the right to withdraw from any relationship should information which we deem to be adverse come to our attention. The results of all background checks and other investigatory procedures are submitted to, and reviewed by, our firm's Client Acceptance Committee. City of Boynton Beach, Florida November 22, 2024 Page 11 Independence Professional standards require that a firm and its members maintain independence throughout the duration of the professional relationship with a client. CBIZ CPAs will periodically reevaluate the Firm's independence as part of our customary client continuance process or more frequently, should circumstances arise that may require us to investigate whether CBIZ CPAs' independence may have been impaired in which case CBIZ CPAs may terminate and resign from this engagement in our sole and absolute discretion. You agree to promptly advise us of any matters or changes in circumstances that could affect our independence or give rise to conflicts including, changes in senior management or the Elected Body, or entities that may have preexisting relationships with CBIZ CPAs or conflicts that could affect our independence. Also, in order to preserve the integrity of our relationship, no offer of employment shall be discussed with any CBIZ CPAs professionals assigned to the audit, including within the one-year period prior to the commencement of the year-end audit, and through the date of issuance of our audit report. Pursuant to professional standards, should such an offer of employment be made, or employment commences during the indicated time period, we will consider this an indication that our independence has been compromised. As such, we may be required to recall our auditors' report due to our lack of independence. In the event additional work is required to satisfy independence requirements, such work will be billed at our standard hourly rates. Access to Working Papers; Confidentiality CBIZ CPAs is periodically required to undergo inspection processes in accordance with legal, regulatory, professional and/or administrative bodies or authorities. During the course of these processes, selected working papers and financial reports, on a sample basis, will be inspected by an outside party on a confidential basis. Consequently,the accounting work we performed for you may be selected. Your signature below represents your acknowledgement and permission to allow such access should your engagement be selected for review. The City acknowledges and agrees that CBIZ CPAs may disclose confidential information as permitted herein, as requested or directed by you or consistent with applicable law, rule, regulation, professional standards or guidelines or in connection with or to respond to its professional obligations. You authorize CBIZ CPAs to participate in discussions with and to disclose your information to your agents, representatives, administrators or professional advisors (including accountants, attorneys, financial and other professional advisors), their respective officers, directors or employees, and other parties as you may direct. Notwithstanding any other provision of this agreement, CBIZ CPAs and the CBIZ CPAs subcontractors (defined below) may use confidential information received hereunder, to develop, enhance, modify and improve technologies, tools, methodologies, services and offerings, and/or for development or performance of data analysis or other insight generation. Information developed in connection with these purposes may be used or disclosed to you or current or prospective clients to provide them services or offerings. CBIZ CPAs and the CBIZ CPAs subcontractors will not use or disclose confidential information in a way that would permit you to be identified by third parties without your consent. The foregoing consents are valid until further notice by you. City of Boynton Beach, Florida November 22, 2024 Page 12 As a result of our prior or future services to you, we may be required or requested to provide information or documents to you or a third-party in connection with a legal or administrative proceeding (including a grand jury investigation) in which we are not a party. If this occurs, we shall be entitled to compensation for our time and reimbursement for our reasonable out-of-pocket expenditures (including legal fees) in complying with such request or demand. This is not intended, however, to relieve us of our duty to observe the confidentiality requirements of our profession. Nothing in this letter is intended to limit your rights and obligations pursuant to the Florida "Sunshine Law", Florida Statute 286.011. The audit documentation and working papers prepared in conjunction with our engagement are the property of CBIZ CPAs and constitute confidential information. These working papers will be retained by us in accordance with applicable laws and with our Firm's policies and procedures. However, we may be required, by law or regulation, to make certain working papers available to regulatory authorities, federal agencies and/or the U.S. Government Accountability Office, for their review, and upon request, we may be required to provide such authorities with photocopies of selected working papers. If requested, access to such audit documentation will be provided under the supervision of CBIZ CPAs' personnel. The regulators and agencies may intend, or decide, to distribute the copies of information contained therein to others, including other governmental agencies. We agree to retain our audit documentation or work papers for a period of at least seven (7) years from the date of our report. Regarding the application of Chapter 119 (Public Records), Florida Statutes, the Custodian of public records for this contract is: City Clerk City of Boynton Beach 100 E. Ocean Avenue, Boynton Beach, FL 33435 (561) 742-6060 Third-Party Service Providers CBIZ CPAs may use or subcontract the services to its affiliates, subsidiaries, CBIZ CPAs related parties and/or third parties, including contractors, subcontractors and cloud-based service providers, in each case within or outside of the United States (each, a "subcontractor") in connection with the provision of services and/or for internal, administrative and/or regulatory compliance purposes. You agree that CBIZ CPAs may provide confidential and other information CBIZ CPAs receives in connection with this agreement to subcontractors for such purposes. CBIZ CPAs maintains internal policies, procedures and safeguards to protect the confidentiality of your information and CBIZ CPAs will remain responsible to you for the protection of such information and services performed by such subcontractors as provided herein. City of Boynton Beach, Florida November 22, 2024 Page 13 Termination CBIZ CPAs' engagement ends on the earlier of termination or resignation (including without limitation, our declining to issue a report or other work product) or CBIZ CPAs' delivery of its report. We acknowledge your right to terminate our services at any time, and you acknowledge our right to terminate our services and this agreement and resign at any time in our sole and absolute discretion, subject in either case to our right to payment for all direct and indirect charges including out-of-pocket expenses incurred through the date of termination or resignation or thereafter as circumstances and this agreement may require, plus applicable interest, costs, fees and attorneys' fees. All terms which by their nature are reasonably intended to survive will survive termination, resignation or expiration. Dispute Resolution Procedure, Waiver of Jury Trial and Jurisdiction and Venue for Any and All Disputes Under This Engagement Letter and Governing Law AS A MATERIAL INDUCEMENT FOR US TO ACCEPT THIS ENGAGEMENT AND/OR RENDER THE SERVICES TO THE CITY OF BOYNTON BEACH IN ACCORDANCE WITH THE PROVISIONS OF THIS ENGAGEMENT LETTER: The Firm and the Client each hereby knowingly, voluntarily and intentionally waive any right either may have to a trial by jury with respect to any litigation based hereon, or arising out of, under or in connection with this engagement letter and/or the services provided hereunder, or any course of conduct, course of dealing, statements (whether verbal or written) or actions of either party. In any litigation brought by either the Firm or the Client, the prevailing party shall be entitled to an award of its reasonable attorneys' fees and costs incurred, including through all appeals. Limitation of Liability You agree that our liability arising from or relating to our services shall not exceed the total amount paid by you for the services described herein. This shall be your exclusive remedy. No action, regardless of form, arising out of the services under this agreement may be brought by you more than one year after the date the last services are provided under this agreement. The Client hereby indemnifies CBIZ CPAs and its shareholders, principals, and employees, and holds them harmless from all claims, liabilities, losses and costs arising in circumstances where there has been a known misrepresentation by a member of the Client's management, regardless of whether such person was acting in the Client's interest. This indemnification will survive completion or termination of this agreement. City of Boynton Beach, Florida November 22, 2024 Page 14 Non-Attest Services We will not assume management responsibilities on behalf of the City. However, we will provide advice and recommendations to assist management of the City in performing its responsibilities. The City's management is responsible for (a) making all management decisions and performing all management functions; (b) assigning a competent individual to oversee the services; (c) evaluating the adequacy of the services performed; (d) evaluating and accepting responsibility for the results of the services performed; and (e) establishing and maintaining internal controls, including monitoring ongoing activities. We are prohibited by professional standards from preparing source documents and authorizing or approving transactions. Accordingly, management must determine and approve all transactions including appropriate account classifications. As part of our engagement, we may propose standard, adjusting or correcting journal entries to the financial statements. You are responsible for reviewing the entries and understanding the nature of any proposed entries and the impact they have on the financial statements. The services cannot be relied on to detect errors, fraud or illegal acts that may exist. However, we will inform you of any material errors, fraud or illegal acts that come to our attention, unless they are clearly inconsequential. In addition, we have no responsibility to identify and communicate significant deficiencies or material weaknesses in the City's internal control as part of a non- attest/non-audit service engagement. We will perform the following services that are considered non-attest services: • Assistance with the preparation of the financial statements. • Preparation of the Data Collection Form (DCF) Our responsibilities and limitations of the non-attest services are as follows: • We will perform the services in accordance with applicable professional standards. • The non-attest services are limited to the services previously outlined. Our firm, in its sole professional judgment, reserves the right to refuse to do any procedure or take any action that could be construed as making management decisions or assuming management responsibilities, including determining account coding and approving journal entries. • These nonaudit services do not constitute an audit under Government Auditing Standards and such services will not be conducted in accordance with Government Auditing Standards. Other Services We are always available to meet with you and/or other executives at various times throughout the year to discuss current business, operational, accounting and auditing matters affecting the City. Whenever you feel such meetings are desirable please let us know; we are prepared to provide City of Boynton Beach, Florida November 22, 2024 Page 15 services to assist you in any of these areas. We will also be pleased, at your request, to attend the meetings of the City. During the course of this engagement, CBIZ CPAs may offer certain value-added resources to the City,including without limitation,local and national educational webinars and events,subscription to CBIZ CPAs thought leadership publications such as industry and insights newsletters, industry surveys and trend analysis, and academic reports into the prevailing economic outlook. The use, receipt of, and payment for (where applicable) these resources will be subject to the mutual agreement of CBIZ CPAs and the City. The City confirms that the use and receipt of these resources, as applicable, is approved by those charged with governance. You acknowledge that you are responsible for the actions of your current and former employees, representatives, or other agents in connection with the transmission of your information. During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you understand that communication in those mediums involves a risk of misdirected or intercepted communications. CBIZ CPAs shall be obligated only for the services or work specified in this agreement. Any other services that may be required or requested by City will be agreed upon by the parties in a separate, new specific engagement letter for such service or work. 218.415, Florida Statutes, Local Government Investment Policies We will perform, in accordance with Chapter 10.550, Rules of the Auditor General of the State of Florida,an examination pursuant to AICPA Professional Standards,promulgated by the American Institute of Certified Public Accountants regarding the compliance of the City with 218.415, Florida Statutes, Local Government Investment Policies. There is no additional cost for this service. Because of the inherent limitations of an examination engagement, together with the inherent limitations of internal control, an unavoidable risk exists that some material misstatements may not be detected, even though the examination is properly planned and performed in accordance with the attestation standards. At the conclusion of the examination engagement, you agree to provide us with certain written representations in the form of a representation letter. Fees Our fees will be based on the services to be provided hereunder, the timeliness and completeness of the information and documentation provided to us, firm technology, firm processes, and time required of personnel at our standard hourly rates. Our hourly rates vary according to the level of the personnel assigned to your audit. Fees for this engagement are noted on Appendix B. City of Boynton Beach, Florida November 22, 2024 Page 16 Our invoices for these fees will be rendered as the work progresses, and are due and payable upon presentation. In the event that you dispute any of the fees or expenses on a specific invoice, you agree to notify us within twenty (20) days of receipt of the invoice of such dispute. If you fail to notify us within the twenty (20) day period, your right to dispute such invoice will be waived. Prior to the commencement of the services described above, any past due balances are required to be paid in full. In accordance with our Firm policies, should any invoice remain unpaid for more than thirty (30) days, we reserve the right to defer providing any additional services until all outstanding invoices are paid in full. Invoice amounts due past sixty(60)days will incur a finance charge of 1%per month. Nothing herein shall be construed as extending the due date of payments required under this agreement,and you agree that we are not responsible for the impact on the City of any delay that results from such non-payment by you. Agreement This letter comprises the complete and exclusive statement of the agreement between the parties, superseding all proposals oral or written and all other communications between the parties. If it is determined that any provision of this letter is unenforceable, all other provisions shall remain in full force and effect. This letter comprises the complete and exclusive statement of the agreement between the parties, superseding all proposals oral or written and all other communications between the parties. The City may not assign or transfer this agreement, or any rights, licenses, obligations,claims or proceeds from claims arising out of or in any way relating to this agreement, any services provided hereunder, or any fees for services to anyone, by operation of law or otherwise without CBIZ CPAs' prior written consent and any assignment without consent shall be void and invalid. CBIZ CPAs may assign this agreement, including all the rights and benefits hereunder, to any affiliate or acquirer of or successor to its business, or purchaser of all or substantially all of its assets, stock or interests or in the event of a reorganization or restructuring, and by your signature hereto, you consent to such assignment and the transfer of the City's files and information. It is hereby understood and agreed that this engagement is being undertaken solely for the benefit of the Client and that no other person or entity shall be authorized to enforce the terms of this engagement. The undersigned represents and warrants that it has the requisite authority and consents to enter into and perform this Agreement and the obligations herein for and on behalf of the City. By executing this Agreement, you confirm, represent and warrant that (i) no person who is the target of sanctions imposed by the United States, European Union, or United Kingdom owns, directly or indirectly, 5%or more of any type of stock or other ownership interest of the Company and (ii) the Company is not, and does not have subsidiaries that are, located or organized under the laws of Russia,and CBIZ CPAs' Services are not performed for the benefit or use of or reliance on by any of the foregoing. City of Boynton Beach, Florida November 22, 2024 Page 17 If you agree with the terms of our engagement,as described in this letter,please sign this PDF version of the engagement letter and return it to us by email and we will send you a fully executed copy. Moises D.Ariza,CPA, CGMA is the Shareholder and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. In accordance with the requirements of Government Auditing Standards, our latest external peer review report of our Firm is available upon request. Very truly yours, CBIZ CPAs P.C. _0~ Moises D. Ariza, CPA, CGMA Shareholder City of Boynton Beach, Florida November 22, 2024 Page 18 ACCEPTED This letter correctly sets forth the agreement of City of Boynton Beach, Florida Authorized signature:G- r 21t Name: , , NTON ,`%% Title: Nult '0�o�eoRgrF.%I. )It, i SIAL . UORA�E01 $ Date signed: g/I/felif ;1NOP 1OR9 , APPENDIX A City of Boynton Beach, Florida Circumstances Affecting Timing and Fee Estimate The estimated fee is based on certain assumptions. Circumstances may arise during the engagement that may significantly affect the targeted completion dates and our fee estimate. As a result, additional fees may be necessary. Such circumstances include but are not limited to the following: • 1. Changes to the timing of the engagement at your request. Changes to the timing of the engagement usually require reassignment of personnel used by CBIZ CPAs in the performance of services hereunder. However, because it is often difficult to reassign individuals to other engagements, CBIZ CPAs may incur significant unanticipated costs. 2. All requested schedules are not (a) provided by the accounting personnel on the date requested, (b) completed in a format acceptable to CBIZ CPAs (c) mathematically correct, or (d) in agreement with the appropriate underlying records (e.g., general ledger accounts). CBIZ CPAs will provide the accounting personnel with a separate listing of required schedules and deadlines. 3. Weaknesses in the internal control structure. 4. Significant new issues or unforeseen circumstances as follows: a. New accounting issues that require an unusual amount of time to resolve. b. Changes or transactions that occur prior to the issuance of our report. c. Changes in the City's accounting personnel, their responsibilities, or their availability. d. Changes in auditing requirements set by regulators. 5. Significant delays in the accounting personnel's assistance in the engagement or delays by them in reconciling variances as requested by CBIZ CPAs. All invoices, contracts and other documents which we will identify for the City, are not located by the accounting personnel or made ready for our easy access. 6. A significant level of proposed audit adjustments are identified during our audit. 7. Changes in audit scope caused by events that are beyond our control. 8. Untimely payment of our invoices as they are rendered. City of Boynton Beach, Florida November 22, 2024 Page 20 APPENDIX B ANNUAL PRICE FOR AUDIT SERVICES Proposers should use this form for submitting its Fee Proposal. The following pncing is submitted as"all inclusive'to provide financial advisory services in accordance with the requirements identified in this Scope of Work and as set forth in this RFP document. 'The grand total price will be used to calculate the number of points using the formula described in SECTION IV— EVALUATION OF PROPOSALS. Audit Estimated Fee Estimated Fee Estimated Fee Estimated Fee Estimated Fee Grand Total 2024-2025 2025-2026 2026-2027 2027-2028 2028-2029 Fundal Statement Audit $130.000.0000 $132.000.0000 $134,000.0000 $136.000.0000 $138.000.0000 $670.000.00 Federal and state single audits $0.0000 $0.0000 $0.0000 $0.0000 $0.0000 $0.00 Subtotal: $670.000.00 Schedule of Professional Hourly Fees for Auditing Services Proposers should use this form for submitting its Fee Proposal_ The following pricing is submitted as"all inclusive"to provide financial advisory services in accordance with the requirements identified in this Scope of Work and as set forth in this RFP document. r We will not be submitting for Schedule of Professional Hourly Fees for Auditing Services line Item AUDIT STAFF POSITION Hourly Rates • Comments 1 Partners $400.0000 2 Managers $300.0000 3 Supervisory Staff 5200.0000 4 Staff $150.0000 5 Other $375.0000 Qua it, _n c :rect_,r (specify in comments) Summary Table Bid Form Amount ANNJ.AL PRICE FOR AUDIT SERVICES $670,000.00 ..Ir.ota1 Contract Amount: $670.000.00 Bid Number: FIN25-001R Vendor Name- Marcum LLP