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HomeMy WebLinkAboutDocumentation_Regular_Tab 13_1/14/2021Agenda Item #13. Regular Council STAFF MEMO Meeting: Regular Council -Jan 14 2021 Staff Contact: Hugh Dunkley, Finance Director Department: Finance _TITLE � RESOLUTION NO. 05-21, A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, PROVIDING FOR THE ESTABLISHMENT OF AN AUDITOR SELECTION COMMITTEE PURSUANT TO SECTION 218.391, FLORIDA STATUTES; PROVIDING FOR THE COMMITTEE'S PURPOSE, MEMBERSHIP, SCOPE OF DUTIES AND MEETINGS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. The current contract between the Village and the independent CPA firm of Marcum LLP expires after the completion of the FY2020 audit. Section 218.391, Florida Statutes, establishes procedures for the selection of auditors to perform the financial audits for counties, municipalities, special districts, district school boards and other units of local government. The auditor selection law requires that the governing body of each of these entities establish an auditor selection committee. Section 218.391(3), Florida Statutes, establishes the duties of the auditor selection committee to include the following: • Establishment of factors to be used for the evaluation of audit services to be provided by an audit firm. • Public announcement of an RFP. • Provision of interested firms with the RFP. • Evaluation of proposals provided by qualified firms. • Ranking and recommendation in order of preference of no fewer than three firms for Village Council's consideration and approval. Section 218.3917 F.S., provides that the auditor selection committee for a municipality must consist of at least three (3) members, one of which must be a member of the governing body and who must serve as committee chair. No employee of the Village may serve as a member of the committee. However, an employee may serve in an advisory capacity. Ideally, all members of the committee should possess or obtain a basic understanding of governmental financial reporting and auditing. Staff has included an estimated timeline of the auditor selection process, which will serve as a guide to committee members and which will facilitate selection and execution of the audit contract in time for the Village to have a timely audit for FY2021. I L an 11 Staff recommends establishment of the auditor selection committee in accordance with Sec. 218.391, F.S. Page 266 of 394 Agenda Item #13. RES. 05-21 AUDITOR SELECTION COMMITTEE ADA V2 auditor selection timeline Page 267 of 394 Agenda Item #13. RESOLUTION NO. 05-21 A RESOLUTION OF THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, FLORIDA, PROVIDING FOR THE ESTABLISHMENT OF AN AUDITOR SELECTION COMMITTEE PURSUANT TO SECTION 218.391, FLORIDA STATUTES; PROVIDING FOR THE COMMITTEE'S PURPOSE, MEMBERSHIP, SCOPE OF DUTIES AND MEETINGS; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES. WHEREAS, Section 218.391(2) Florida Statutes, requires that the Village Council establish an Auditor Selection Committee for the purpose of assisting the Village Council in selecting an auditor to conduct the annual financial audit required by section 218.39, Florida Statutes; and WHEREAS, the Village Council deems that this Resolution is in the best interest of the public health, safety, and welfare of the citizens of the Village of Tequesta. NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE COUNCIL OF THE VILLAGE OF TEQUESTA, PALM BEACH COUNTY, FLORIDA, AS FOLLOWS: Section 1: Resolution No. 05-21 is hereby officially adopted; Section 2: Committee Established; Purpose. There is hereby established a Village of Tequesta Auditor Selection Committee to be composed of members appointed by the Village Council. The purpose of the Auditor Selection Committee is to serve in an advisory capacity to the Village Council in the selection of an independent auditor to conduct the Village's annual financial audit as required by State law. Section 3: Membership. The Committee shall consist of at least three (3) members, one of which must be a member of the governing body (Village Council) and who must serve as the Committee Chair. The Chairperson shall be selected by the Village Council. No employee of the Village may serve as a member of the Auditor Selection Committee; however, an employee of the Village may serve in an advisory capacity. The term of appointment shall be for one year. The members of the Committee shall be as follows: (1) Dr. William Watkins (Citizens - (Nominated by Mayor Brennan —Seat 2) (2) (3) 1) (Nominated by Vice -Mayor Stone —Seat 4) (Nominated by Council Member D'Ambra —Seat (4) Mr. Larry Dugan (Citizen) - (Nominated by Council Member Brandon —Seat 3) (5) 1 (Nominated by Council Member Prince —Seat 5) Page 268 of 394 Agenda Item #13. Section 4: Scope of Duties. In exercising its responsibility to select an independent auditor for the Village, the Committee shall be bound by specific provisions of Section 218.391, F.S., as may be amended. The Committee shall not have any auditor oversight responsibilities. The Committee shall not have the authority to expend Village funds. Committee members shall not receive compensation. Section 5: Meetings. The Committee shall meet as often as necessary in order to adequately accomplish its duties. All meetings of the Committee shall be open to the public in accordance with the Sunshine Law. Section 6: Conflicts. All resolutions or parts of resolutions in conflict with the provisions of this Resolution are hereby repealed and rescinded. Section 7: Severability. If any section, subsection, sentence, clause, phrase, word, or portion of this Resolution is for any reason held invalid or unconstitutional by a court of competent jurisdiction, whether for substantive or procedural reasons, such portion shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions of this Resolution. Section 8: This Resolution shall become effective immediately upon passage. Page 269 of 394 J LL W W H LL W a J N N'f W V 0 DC a Z O H V W J W N'f 0 Oc Q J Q z cc H X W U TM4 N O N r E *' E V Q O Page 270 of 394