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10-04-2000 - Special CITY COUNCIL OF EDGEWATER SPECIAL MEETING OCTOBER 4, 2000 6:00 P.M. COMMUNITY CENTER MINUTES CALL TO ORDER Mayor Schmidt called the Special Meeting to order at 6:00 p.m. in the Community Center. ROLL CALL Mayor Donald Schmidt Present Councilman James Brown Arrived at 6:30 p.m. Councilman Dennis Vincenzi Present Councilwoman Harriet Rhodes Present Councilwoman Judith Lichter Present City Manager Kenneth Hooper Present City Clerk Susan Wadsworth Present Thomas Alcorn Present Christopher Balmer Present Donald Gillespie Excused Rich Morin Absent Nora Aly Present C. Michael Wilson Present Edward Keenan Absent Adelaide Carter Present Roland Bazin Present 1) DEVELOPMENT BUSINESS PLAN FOR ECONMIC DEVELOPMENT PROGRAM - FOR DISCUSSION: A. Update of Current Economic Efforts Surrounding Cities /Chambers (Alcorn) B. Council comments related to economic development (Mayor, Council) C. Develop economic development priorities (Hooper) D. Joint ventures /partnerships - commercial building /park (Mayor, Hooper) E. CRA - are we serious about setting up a District? Mr. Alcorn identified the Economic Development Board wanted to meet with Council to tell them where they were at and to find out from Council if they were going in the direction they felt was appropriate for the City. He further commented on some of the things they have done he felt directly impacted the Council. He spoke of a survey they 1 Council Special Meeting October 4, 2000 did with regard to whether people on U.S. #1 wanted to be annexed and the responses they received back from that being there was a statistically significant interest by the people in joining into the City. He spoke of a program put together by Adelaide Carter where they went out and spoke to the businesses in the City to make sure they didn't have any issues, which Ms. Carter further described the results of. Mayor Schmidt questioned the comments made with regard to there being nothing to cater to small businesses and if they described what they would like. Ms. Carter didn't think they said anything other than that. Councilwoman Lichter asked what happened to the small businessmen's group. Mr. Alcorn described being involved with that and the group basically dissolved. Councilwoman Lichter felt it was going to aim to help small business and felt such an organization may be needed. She also mentioned getting help from SCORE and commented on the small businesses other than those on Guava and Hibiscus having trouble staying in business. Mr. Alcorn described organizations out there to help small businesses. Councilwoman Lichter further described Economic Development being a web that could bring these different groups together for a very important purpose. Mr. Alcorn spoke of letting people know the resources available to them. He further commented on Enterprise Volusia and the Chamber having information available. He also spoke of working with businesses to help them put in a business if there may be an issue with what is permitted on a piece of property. Ms. Aly further commented on the comments made about there being nothing to cater to small businesses and most of the businesses in Edgewater being ten people or less. She felt the businesses also needed to be made aware of each other so they could help each other. Mr. Alcorn spoke of not having the participation in the Chamber from Edgewater that they do from New Smyrna due to New Smyrna being a boutique city and Edgewater being a working class city. Councilwoman Lichter questioned if Steve Dennis from the Chamber should be present so they could bring this to their attention. Mr. Alcorn advised he was Vice President of the Chamber for Economic Development, which was meeting tomorrow night and he would relay the information. He also identified he was on the Board of Directors for Daytona Beach Community College. Councilwoman Lichter felt maybe there should be a special price for small businesses to join the Chamber. Mr. Alcorn informed her there was and that individual members could join as well. 2 Council Special Meeting October 4, 2000 Ms. Carter read the issues identified by Susie Q Products that was obtained from the survey. Mr. Alcorn commented on a problem in the City of New Smyrna Beach with an approved spec building and not being able to get anybody to pay the rent it would take based on the cost of the building. There was further discussion regarding the cost per square foot on an annual basis for industrial space in the New Smyrna /Edgewater area compared to Daytona and Deltona. Councilwoman Lichter commented on an industrial park being large. Mr. Alcorn described the industrial zoning and commented on the City's proposed industrial park. He then passed out a document entitled "Impact 100 - What 100 New Manufacturing Jobs Mean to a Community ". (Attached) Jerry Fox commented on the Porta Products buildings being built for $3.75 per square foot which he felt was very competitive and this having to do with one's investment strategy. He pointed out the Edgewater Council and government in Edgewater was the best he had seen in the County anywhere in terms of economic development and working with companies to make it happen. City Manager Hooper commented on the road, water and sewer being put into the industrial park to make it attractive. Councilwoman Lichter spoke of dealing generally with small business and the need to communicate available resources to the businesses that are already here. Ms. Aly felt they needed to embark on a campaign to patronize their fellow neighbor to make them aware. Mayor Schmidt commented on incorporating into the occupational licenses a small business directory of where businesses could get help. Ms. Aly suggested also using the radio as a means to get information out. Councilman Brown arrived at 6:30 p.m. Mr. Alcorn asked if the information that was in the City's database for occupational licenses could be easily taken and into an ascii format and a brochure could be developed. City Clerk Wadsworth commented on being in the process of converting over to a new system and being able to pull a lot of the information off of the new system. A questionnaire was sent with the occupational license renewals asking for information that would be put into the new database. 3 Council Special Meeting October 4, 2000 Councilwoman Lichter felt the businesses were not separated enough for people to understand which were Edgewater businesses and felt they needed an Edgewater directory for those that wanted to be in it. There was further discussion regarding putting together a resource booklet categorized by the type of business they are and they would get them out to all of the current businesses as well as people making application. Mayor Schmidt suggested having a gathering of the businesses on a particular day and passing out information there. Councilwoman Lichter suggested having the information available at City Hall. Mr. Carter asked about the new buildings at Fern Palm Drive and Industrial Street across from Cushman and how big they were going to be. Mr. Alcorn estimated 6,000 to 8,000 square feet. He further identified the size of Boston Whaler as well as the bike business on Park Avenue. Mr. Alcorn then provided an update regarding New Smyrna Beach, the Chamber of Commerce and Enterprise Volusia putting together a CD with basic information regarding economic development for Southeast Volusia. He further identified the information that would be provided on the CD. He further spoke of handing these out at different trade shows as well as putting it on the Internet and working on updating the statistics. Mr. Alcorn commented on the CD being done by the Chamber and incorporating New Smyrna Beach, Edgewater and Oak Hill for southeast Volusia. Councilwoman Lichter felt the CD should be specifically for Edgewater. Mr. Alcorn commented on Edgewater having its own Economic Development Board but still needing to be incorporated into any information being put out by other agencies. There was further discussion regarding the need to develop the information for information packets that are being put out. Mr. Alcorn commented on City Manager Hooper being applauded for his efforts and knowledge and the ability to see past the present problem and not seeing it as a problem but a challenge and how they are going to meet that challenge. City Manager Hooper presented an update on the efforts being made with regarding to the FIND project. Once they get through some of the major projects they are doing right now such as the YMCA, he wanted to talk seriously about purchasing parcels that were located outside of FIND's ability to bring in. He wanted to buy the whole piece together to make that something they could grow with. He then spoke of the widening of SR 442 being the next step. 4 Council Special Meeting October 4, 2000 Councilwoman Lichter commented on not wanting to neglect Guava and Hibiscus and wanting to help those businesses that are already established with things such as their appearance. Mr. Alcorn commented on a Community Redevelopment Agency with regard to tax incremental financing and this being how the improvements to Canal Street and Flagler Avenue were done. He further commented on having to have somewhere where prices were rising. He didn't see the values on U.S. #1 rising until a lot of other things happen. City Manager Hooper spoke of when they advertised for planning consultants, a CRA was one of the criteria they used. He identified there were two different kinds of CRA's that would benefit the City, undeveloped areas and blighted areas, which had two different methods and two different purposes. He further described this as already being part of their agenda. Mr. Alcorn commented on perception being reality and perception being one way. He further described the City Council has changed the way they are perceived by the public so he felt people were seeing the City in a more positive light. Ms. Aly commented on small businesses that are operated out of people's homes and giving them an opportunity to create the curb appeal the City is missing by relocating to U.S. #1. Councilwoman Rhodes expressed concern with the colors being painted on some of the businesses buildings. She spoke of having things in place so they can offer the small businesses some incentives. Mr. Alcorn identified Port Orange as being extremely restrictive. Councilwoman Rhodes didn't want to be restrictive; she just wanted to help them with their curb appeal. Mr. Alcorn further commented on Edgewater not having a downtown. Councilwoman Lichter felt a new City Hall site may feed into that concept. She envisioned shops around it and making some type of center. Mr. Alcorn clarified the Council wanted a resource booklet that listed all of the businesses that could be given to the current businesses and passed out to the new businesses. They want to update the information they currently have that they can give out to perspective businesses coming into the area as well as update the City profile and literature. Councilwoman Rhodes asked that when the brochure was complete if they could find out what it would cost to mail one to every household and thought maybe they could get the businesses to contribute. City 5 Council Special Meeting October 4, 2000 Manager Hooper commented on the newsletter that went out and combining one mailing and putting it in there. By far, this would be very cost effective. He passed out a letter that is being sent to new businesses from the Council. (Attached) Someone felt the small businesses would have a problem paying a $250 Chamber of Commerce membership. Councilwoman Lichter commented on the Chamber possibly considering a lesser fee for small businesses. Mr. Alcorn identified there currently was a lesser fee. Mr. Alcorn showed a Sports Fishing Magazine that came out that talked about how wonderful the fishing was here. The Greater Daytona Beach Striking Fish Tournament has decided to leave Daytona Beach and they wanted to come to this area. He asked Council to think about how Edgewater could participate in that and suggested a fishing expo. He further commented on the water here being a resource. Ms. Aly asked about a business sponsoring this. Mr. Alcorn informed her two businesses were already onboard, Ocean Properties and Boston Whaler. He further described he wanted to see a designated bike path going through the City and have a canoe /kayak trail in the river. Mr. Alcorn asked if there was anything else they wanted to discuss. Ms. Carder commented on her thrift shop where they rent bikes and having a map which includes Edgewater. Councilman Brown questioned how the bridge was doing on the north end of the sidewalk to be able to get across so they don't have to go out in the road. City Manager Hooper provided a brief update and explained it was a joint venture. There was further discussion regarding different events they could do with regard to the river and fishing. Mr. Alcorn thanked the City Council and Lynne Plaskett for attending their meetings and keeping them up to date on what was going on with the City and City Manager Hooper for helping them organize the meeting. They serve at the Council's direction and want to provide a good place for the families that are here to work and opportunities for the children. Mayor Schmidt called a ten - minute recess at this time. The meeting recessed at 7:07 p.m. and reconvened at 7:17 p.m. 2) PRESENTATIONS FOR EXTERNAL AUDITING SERVICES City Manager Hooper informed Council they would be hearing two presentations. Both firms were noticed and were present. Ernst & Young indicated they wanted to sit in the conference room while the 6 Council Special Meeting October 4, 2000 first presentation was made. From that point Council would have a choice if they wanted both firms to leave or stay while they debated and voted. City Manager Hooper then presented the background information with regard to entering into negotiations for external auditing services. 1) Brent Millikan & Company Bradley Douglas, CPA, Audit Principal, Brent Millikan & Company, P.A., went through a Powerpoint Presentation. (Attached) During his presentation he referred to their response to the RFP, in particular Page 21 with regard to governmental clients served by Brent Millikan & Company, P.A.; Page 25 with regard to Peer Review of their response to the RFP; Page 17 with regard to Brent Millikan; and Pages 23 and 24 with regard to Brent Millikan & Company, P.A. being a charter member of the IGAAF (Independent Government Auditors Association of Florida, Inc. (Attached) Mr. Douglas thanked Council for the opportunity to make a presentation and opened up the meeting for any questions the Council had. He then answered questions 1, 8 and 9 at the request of Councilwoman Rhodes and questions 2 and 4 at the request of Councilwoman Lichter on the potential list of questions provided to Council. (Attached) Councilman Vincenzi commented on the records checks about using contract employees. Mr. Douglas elaborated on Councilman Vincenzi's concerns by identifying that as being specific to the County of Volusia audit and further explained what originally happened with regard to this being a joint venture and confirmed this would not happen with the City. He also commented on the six employees that won the lottery at the City of New Smyrna and left which required them to need additional services from the auditors. Councilman Vincenzi felt the next firm would be providing a similar presentation. Other than being local, he asked what differentiates Brent Millikan & Co., P.A. from Ernst & Young LLP. Mr. Douglas informed him who they were going to put in the field and identified if they had to reduce their fee they would probably get a senior level accountant in the field that may not have 19 years experience or be a manager. Councilwoman Rhodes asked if he would be the only one that the Finance Director would be working with. Mr. Douglas identified he would bring other people and he would be senior man on the project and would be giving the direction to his staff. Councilman Brown expressed concern with a gentleman that had been here before that had conflicting personalities with City Manager Hoper and he didn't wish to have him interacting. Mr. Douglas identified he was 7 Council Special Meeting October 4, 2000 not here tonight and he understood that. He further commented on the City having really good professionals here and they have the right people. Councilwoman Lichter expressed concern with the workload on the City staff. She asked if their firm required more of them besides that. Mr. Douglas explained one concern staff always has is the turnover personnel issue. Sometimes interim audit work can be done before the end of the year work is done. He spoke of only having to interrupt staff to get access to certain information to compile their permanent file. Mayor Schmidt thanked Brent Millikan & Co., P.A. for coming to the meeting. While they were getting Ernst & Young, City Manager Hooper asked Council if they had any questions. Councilwoman Rhodes identified she wanted to meet with the Selection Committee. There was a brief discussion regarding a previous presentation made by Alex Kish from Brent Millikan & Co., P.A., who seemed to be pretty high strung. City Manager Hooper commented on the normal process with regard to bids and request for proposals. He further identified no matter which firm they pick, when it comes back to the contract there would probably be a difference in the numbers they heard tonight because they still had to negotiate and get it back to Council. Finance Director Michelle Gions asked if a decision was made as to whether or not they wanted the firms to go or wait. Councilwoman Rhodes felt they could go ahead and go. Mayor Schmidt welcomed the gentleman from Ernst & Young. John Vodenicker, Ernst & Young LLP, identified he was going to make a presentation by articulating the differences between the two firms. (Attached) Also available to help with the presentation was Mike Pattillo, Senior Manager and Walt Houston, who would talk about the computer issues. Mr. Vodenicker then turned the meeting over to Mike Pattillo who continued the presentation by speaking about their audit approach, why their audit process is different, GASB Statement No. 34, which is the new financial reporting model and some of the other services they could provide. Mr. Pattillo then turned the meeting over to Walt Houston who continued the presentation by commenting on the integration of their 8 Council Special Meeting October 4, 2000 information technology team into their audit as well as the some of the tools they use and eRisk Solutions. Mr. Vodenicker then presented some closing comments and asked if there were any questions. Mr. Vodenicker answered questions presented by Councilwoman Rhodes in terms of where Mr. Vodenicker was from and Councilwoman Lichter with regard to GASB Statement No. 34 and whether the staff would be the same as they had last year. Mr. Pattillo further addressed questions presented by Councilwoman Lichter and Councilwoman Rhodes with regard to being able to reduce the fee due to Finance Director Goins being a CPA and being able to pick up more of the load. City Manager Hooper further identified what had occurred and what still needed to occur. Mayor Schmidt thanked the gentlemen for their presentation. City Manager Hooper referred to the two companies being selected because of GASB 34 and larger cities having implementation dates earlier than smaller cities. He felt the in -house staff could do a tremendous amount of the audit. City Manager Hooper then commented on the importance of the computer part. He further spoke of Karen Rickelman leaving during the transition between computer programs. He contacted Mr. Pattillo and they sent people in who helped. They met with them, showed them what they needed to ask and worked with Finance Director Goins. They also came in and worked with Donna Looney on last year's budget, which was her first budget, due to Karen leaving at midpoint. They showed her how to do it and what to do. It was within 1% of the total revenues and expenditures, which he felt was a very good budget. They have had excellent response when they call. He further spoke of there being a big difference in the two presentations. If there is a chance to use local they would like to but it is down to public dollars and they are paying for something and need the best service for those same dollars. Councilwoman Rhodes asked if when they came in to help if they charged extra to do that. City Manager Hooper stated in some areas they did and some areas they didn't. Councilwoman Rhodes questioned no matter who did the audit, that same thing would have occurred. City Manager Hooper felt they would have helped with the budget part but they couldn't have helped with the conversion due to never having worked with HTE /CitySoft. He further commented on the major problems that occurred with the conversion. Finance Director Goins answered questions for Councilwoman Rhodes with regard to the individuals from Brent Millikan & Company who came in and made the first presentation. There was further discussion regarding the first presentation and the aggressiveness that was displayed by Alex Kish. 9 Council Special Meeting October 4, 2000 Finance Director Goins spoke of introducing herself to Alex Kish and Brad Douglas at the FGFOA meeting in May. Councilman Brown asked if they got a new contract with the auditors every year or if they were trying to do a three year contract. Finance Director Goins identified in the past it was three years and was based on a one year renewal with the original contract that started in 1990. Councilwoman Lichter asked if the price would stay the same for the three years. Finance Director Goins explained normally they have a multiplier so the price would go up by a certain percentage each year. Councilwoman Rhodes asked Finance Director Goins if going with Brent Millikan would require more work from the staff. Finance Director Goisn believed so based on what they had said. They won't come out and tell them they would require more work. Councilwoman Rhodes questioned if they would know that at this point. Finance Director Goins commented on schedules that could be prepared. She further commented on being a CPA and doing auditing before. She wouldn't mind doing the schedule if it was going to save the City money. She further identified there were certain things she could do. Councilwoman Lichter commented on dealing with a new firm. Finance Director Goins spoke of a new firm not making any money the first couple of years due to having to start from scratch which should be built into the price. Finance Director Goins spoke of speaking to Bill Poling, Finance Director at the City of New Smyrna Beach who said very good things about Brad. The comment that was made was every year they whine about the price and how they are losing money on the job and things of that nature. Councilwoman Lichter felt if they had something that wasn't broken and working fine that you stick with it. She felt the second firm was superior. Finance Director Goins identified concerns with regard to the amount of resources and the availability of scheduling staff. City Manager Hooper spoke of Finance Director Goins being very humble. He further spoke of major changes she had implemented which were the cause of the drop in the price. City Manager Hooper informed Council the request was for Council to authorize himself and Finance Director Goins to negotiate an audit contract, bring that back to Council. The ranking would be first 10 Council Special Meeting October 4, 2000 Ernst & Young. If they can't reach a successful negotiation then they move to the second firm, Brent Millikan. Councilwoman Rhodes asked City Manager Hooper what he considered a successful negotiation, which he presented examples of. Councilwoman Lichter made a motion to authorize staff to enter into negotiations with Ernst & Young and if no successful negotiations are reached they would move to Brent Milliken, second by Councilman Brown. City Manager Hooper identified he would schedule the contract for the October 23r meeting. The MOTION CARRIED 5 -0. City Manager Hooper commented on putting on the wall the before pictures of SR 442 and computer generated pictures of SR 442 after. City Manager Hooper informed Council of a meeting he had with DOT today where they talked about the speed limit limitation south to Roberts Road but they needed traffic counts and accidents counts for the last six months which he agreed to provide by the end of the week. He further commented on DOT having a very positive response. He also identified he would be meeting with the DOT people onsite on Friday out at the truck stop. Councilman Brown complimented City Clerk Wadsworth for the letter she had done that was being sent out welcoming new businesses. ADJOURNMENT There being no further business to discuss, Councilman Vincenzi moved to adjourn. The meeting adjourned at 8:47 p.m. Minutes submitted by: Lisa Bloomer, CMC 11 Council Special Meeting October 4, 2000 I IMi� 5 / \i. J T What 100 New Manufacturing Jobs Mean to a Community IN TERMS OF PEOPLE it Every 100 new manufacturing jobs in the means state generates 74 other jobs: Total 174. 112 more households The income generated from these 174 new jobs follows: 4 retail establishments 107 more passenger car 100 new jobs in the new industry itself $1,437,696 registrations 74 other new non — manufacturing jobs $886,608 91 more school children 174 total new jobs $2,324,304 359 more people in the area For a five year running average, non — manufacturing IN TERMS OF MONEY it jobs generated are spread in the following fashion. means Income values: $2,324,304 increase of annual income 5 Contract Construction $93,779 5 Transportation, Communications, Utilities $87,607 THIS TRANSLATES INTO 21 Wholesale and Retail $189,091 4 Finance, Insurance and Real Estate $42,124 $1,178,422 of additional retail sales 16 Service Occupations $154,236 $876,263 of additional bank 19 Government (all levels) $242.900 deposits 4 Other Occupations $76,871 $269,619 of other expenditures 74 Non — Manufacturing Jobs $886,608 Here's how the Iocal retailers benefit from an additional $1,178,422 sales: $312,282 more to Grocery Stores 26.5% $94,274 more to Eating and Drinking Places 8.0% $61,278 more to Apparel Stores and Specialty Shops 5.2 % $58,921 more to Furniture and Household Appliance Stores 5.0% $208,581 more to Automotive Dealers and Supply Houses 17.7% $94,274 more to Gasoline Service Stations 8.0% $78,954 more to Lumber Yards, Building Material, Hardware 6.7% $11,780 more to Drug Stores 3.8% $156.730 more to Department, Dry Goods, Variety Stores 13.3% $68,348 more to Miscellaneous Retail Stores 5.8% $1,178,422 more to Retail Stores as a Group 100.0% 1&�t J /u2e. & 4 t4t Pa'tci 2 o/ o .2,w/atf o/ ta4 THE CITY OF EDGE WATER _- POST OFFICE BOX 100 - EDGEWATER, FLORIDA 32132 -0100 ;: tT Mayor Donald A. Schmidt City Manager Kenneth Hooper District 1 Councilman James P. Brown City Attorney Scott A. Cookson District 2 Councilman Dennis A. Vincenzi City Clerk Susan J. Wadsworth District 3 Councilwoman Harriet E. Rhodes District 4 Councilwoman Judith R. Lichter Welcome, On behalf of the City Council and our staff, it is with great pleasure to extend to you and your business a special welcome. It is our hope that you join with other community businesses that have taken a leading role in economic, civic and social events that play such an important part in maintaining and improving the economic health of our great City. Please if you need any assistance our City Staff is always available to help you Once again we are delighted that you chose the City of Edgewater for your business and we wish you much success. ely, C eitz1,41 ,.,e1,,‘;., Donald A. Schmidt Mayor Telephone Numbers: City Manager Ken Hooper -424 -2404 Assistant to the City Manager Liz McBride 424 - 2404 Acting Police Chief Bill Bennett- 424 -2425 Fire Chief Tracy Barlow -424 -2445 Building Official Dennis Fischer -424 -2411 City Clerk Susan Wadsworth -424 -2407 Director of Environmental Services Terry Wadsworth - 424 - 2460 SJW 104 NORTH RIVERSIDE DRIVE FAX - (904)424 -2409 SUNCOM 383 -2407 CITY CLERK- (904)424 -2407 POTENTIAL QUESTIONS FOR EXTERNAL AUDITING SERVICES PRESENTATIONS OCTOBER 4, 2000 1) What is your firm's "plan of attack" for assisting municipalities with the Governmental Accounting Standards Board's Statement 34? 2) How does your firm plan to meet the staffing levels required for a job like the City of Edgewater? 3) Is your firm limited in its time availability to complete the audit if the City were to need additional time to close out the end of the year? 4) What type of experience does your firm have with assisting in software issues, especially experience with the City's current software, HTE /Citysoft? 5) What types of schedules and documents would you require to be prepared by the City? 6) What unique qualities can your firm offer the City? 7) What response time can the City expect from your firm for questions and/or comments? 8) What precautions do you use to avoid becoming involved in the politics of the City Council? 9) What type of experience do you have with assisting cities in obtaining the "Certificate of Achievement for Excellence in Financial Reporting" from the GFOA? City of Edgewater, Florida Oral Presentation Request for Proposal to Provide Professional Auditing Services For the Fiscal Year Ending September 30, 2000 October 4, 2000 BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Proposal For City of Edgewater Introduction of Principals • BRENT MILLIKAN &COMPANY, P.A. Bradley F. Douglas, CPA, Audit Principal BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Proposal For City of Edgewater BM &C Advantages • Extensive Governmental Audit Experience • Prior Understanding of Your City • Efficient Audit Approach • Understanding of Your Needs BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Proposal For City of Edgewater Client Satisfaction Quality Value • Extensive Partner Participation; • Experienced Professional Staff; • Longstanding Commitment to Client Government Sector Clients; Satisfaction • Wide Array of Professional Service Capabilities; • Cost and Value Considerations; • Results in: Service - Higher Quality of Service - More Value for Dollars Spent - Better Service for Client - Higher Client Satisfaction BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Proposal For City of Edgewater Meeting Client Needs • Composition of Audit Team - Partner Participation • Over 50 Years Combined Government Audit Experience on Proposed Audit Team • Firm -wide Government Concentration • Problem Solving Capabilities • Commitment to Service Excellence BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Proposal For City of Edgewater Engagement Cost Criteria • Proposed First Year Fixed Base Fee • Professional Time Committed to Engagement • Experience Level of Auditors • No Costly National Firm Overhead • No Travel Costs - Travel Overhead Absorbed by BM &C • Additional Services at Disclosed Standard Hourly Rates BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Proposal For City of Edgewater Our Strengths • Local Firm — Audit Manager Lives in City of Edgewater • Timeliness of Response • Responsive to Your Needs • Understanding of Work Scope • Strong Governmental Experience • Strong Governmental Incorporation Experience • Strong Governmental Resources — (Staff, IGAAF) BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Proposal For City of Edgewater Personnel Networking • IGAAF Participation and Involvement • IGAAF Leadership Role • History of Mutually Successful Projects • Benefit to Governmental Clients • Standardized Audit Approach BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Proposal For City of Edgewater Key Benefits - Proven Performance • We Keep our Promises • We Will Meet or Exceed Performance Specifications • You Will Be a High- Priority Client of Our Firm • You Will Receive a High -Level of Response • You Will Be Served by Experienced Professionals • You Will Receive Real Value for Your Investment BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Proposal For City of Edgewater Next Steps • Appropriately Consider "who will actually be performing your work" • BM &C Offers Substantial Firm Resources • BM &C Offers Experienced Governmental Specialists • Contact our Satisfied Clients and References • Select the Best Firm —BM &C is that Firm!! BRENT MILLIKAN & COMPANY, P.A. October 4, 2000 Professional Staff Proposal for City of Edgewater P lro ty � Page 17 I Brent Milliken, CPA Managing Principal I Brent Millikan & Company, P.A. Education • x Florida State University (1972) I Registrations IIII • Certified Public Accountant (CPA) -State of Florida, State Board of Accountancy " ( ) ntancy Certificate in Management Accounting (CMA) - Institute of Management Accounting • AICPA Accredited Personal Financial Specialist (PFS) Certified Fraud Examiner (CFE) • Florida Licensed Real Estate Broker • Florida Licensed Mortgage Broker Board Certified in Business Appraisal, Real Estate Law Institute I Professional Affiliations /Community Service Member of the American and Florida Institutes of Certified Public Accountants • Member of the National Association of Certified Fraud Examiners • Member of the Institute of Management Accounting • Member of the National Association of Accountants Member of the FICPA Consultation Services Committee - Federal Income Taxation • Member -Board of Directors, Regions Bank of Volusia County 1 • • Past Member -Board of Directors, Friends of the New Smyrna Beach Brannon Memorial Library, Inc. Past Member -Board of Directors, First Florida Bank of Volusia County Professional Experience I • Has over 25 years of governmental and public accounting and auditing experience in providing professional services to a variety of governmental, nonprofit, professional, commercial, industrial, and manufacturing organizations. • I Has over 25 years of experience in providing management advisory and consulting services to governmental agencies, corporations, partnerships and individuals with significant concentration in the areas of real estate development, construction, LIFO inventory accounting and implementation, incorporation, dissolution, and general corporation and individual tax planning. I • Has extensive experience in business planning and trust and estate planning with significant concentration in the development of estate tax- minimization plans and trusts, the development of business profit plans, and the development of individual business year -end tax planning strategies. I Specialized Training • During the past several years, he has participated in numerous professional development training programs sponsored by the AICPA and FICPA. He averages in excess of 200 hours bi- annually of advanced training which I exceeds the 80 hours required in accordance with the continuing professional education requirements of the Florida State Board of Accountancy and the AICPA Private Companies Practice Section, Division for Firms, and the National Association of Certified Fraud Examiners. • He has served as a speaker /instructor for the University of Central Florida, University of Florida, and Stetson 1 University on various topical issues. 1 1 1 1 1 PAGE 21 1 \I11 1 lk \\ ,\ ( ()\11' \\l. > > mc, 1 CITY OF EDGEWATER (1 overnnt (X)mmitmdnt AUDIT PROPOSAL 1 Governmental Audit Clients ment for Excellence in Financial Reporting issued by the Government Finance Officers Association (GFOA). Brent Milliken & Company, P.A. has provided governmen- At the present time, we provide professional auditing tal accounting and auditing services to units of local gov- services to 5 municipal, 1 county government, 1 school ernment for over 25 consecutive years. During that pe- district and 3 independent district government units. A riod of time, we have assisted 6 government clients in summary of the current and previous clients of our firm is obtaining and /or maintaining the Certificate of Achieve- found below. Governmental Clients Served By Brent Millikan & Company, P.A. Municipalities County Governments City of Bunnell Flagler County City of Daytona Beach ( Volusia County (1x2) City of DeBary (1) City of Edgewater ( Districts and Other City of Flagler Beach City of Holly Hill (1)(2) School District of Volusia County (1) City of Orange City Utilities Commission, City of Port Orange ( City of New Smyrna Beach ( City of New Smyrna Beach (4 Community Redevelopment Agency City of Lake Helen (1) of New Smyrna Beach (1) City of Oak Hill (1) Bert Fish Medical Center Foundation (1) Other Grant Agencies Flagler County Council on Aging 1 g y g g and Community Services, Inc. ( > Flagler County Transport (1) Council on Aging of Volusia County, Inc. (1 Livings Gifts Foundation of Volusia County, Inc. (1) Chemical People of Southeast Volusia, Inc. 111 (1) Current client ( 2) Certificate of Achievement Recipient 1 I ' Government Commitment Proposal for City of Edgewater P tY Page 23 II ' • Share skills, specialized knowledge and experience g p in the public sector with member firms; 1 .1 E` ' i t - k-t - ' • Increase awareness in the profession, the public sector, and the public of the capability, competence, II and quality of service provided by IGAAF member IGAAF Leadership and Participation firms to governmental entities and not-for-profit organizations; and I On June 23, 1994, the Independent Government • Provide marketing and practice development support Auditors Association of Florida, Inc. ( IGAAF) held its to assist members in the growth of their public sector organizational meeting. At this meeting, eight local/ practice. regional CPA firms from around Florida affirmed their I membership and joined forces in networking their As a member of IGAAF, we are able to offer all of our cli- individual governmental talent. This is the only network of ents virtually unlimited professional resources in the Florida CPA firms with governmental expertise of its kind. public sector. IGAAF member firms are committed to I While Brent Milliken & Company, P.A. is an IGAAF charter adopting a standardized audit approach to be used on all governmental and not - for - profit audit engagements. This member, representatives from our firm have significant will ensure that a consistent level of high quality work will roles in the activities of this organization. Alex Kish has be performed on all audit engagements and that all I served as the Vice President of IGAAF since its inception. professional personnel of member firms are familiar with firm quality control requirements and, thus, readily Network of Government Specialists interchangeable if needed. I The following objectives were adopted as part of IGAAF's Through our membership in IGAAF, we have the capability to provide our public sector clients with unlimited Bylaws: resources in a number of different areas of specializa- I tion. We want our clients to use us as their business ♦ Develop a practice management program to assist advisors as a point in staying in touch with our them member firms in the improvement of their public throughout the year. We also encourage our clients to sector accounting, auditing and consulting practices call us with questions anytime during the year. I on a continuing basis; We are extremely excited ♦ Maintain technical competence in public sector about IGAAF and the I accounting, auditing and management consulting; benefits realized by our public sector clients. We are ♦ Increase member firm capabilities through member confident that it will be the - - representation throughout the State of Florida; catalyst to providing our . , ; - I firm's professionals with the ♦ Provide training of professional staff in the area of unique opportunity to place " it'a-„ public sector accounting, auditing and consulting; more emphasis on -" I specialized aspects of public -:-� • Provide a reservoir of specialists immediately sector governmental .......„. l ° ` available to member firms in order to serve their accounting, articularly g + - �. - M -,�_ .� clients to the fullest extent possible in the areas of when that talent can be • 6 A-- :44... public sector accounting, auditing and management shared among a larger group "`- consultin of firm users. 1 1 1 1 Govemment Commitment Proposal for City of Ed po ty Edgewater Page 24 1 Current IGAAF Member Firms Brent Millikan & Company, P.A. New Smyrna Beach Harris, Cotherman, O'Keefe & Associates Winter Park Vero Beach Carter, Belcourt & Atkinson Lakeland Lake Wales Tampa Winter Haven Madsen, Sapp, Mena, Rodriquez & Company (MBE) Plantation McAlpin, Calvalcanti & Lewis (WBE) Ft. Pierce Saltmarsh, Cleaveland & Gund Pensacola Panama City Fort Walton Beach M Schultz, Chaipel & Company Fort Myers Thomas, Howell & Ferguson Tallahassee 1 M r 1 B121 \ I '111 I i k \ \ .A ( ( ) \ 1 l \ \ \ . 1' \ PAGE 25 CC r • i CITY OF EDGEWATER I AUDIT PROPOSAL 1 Quality Control Program I AICPA Peer Review Program Quality control in any CPA firm can never be taken for Qua /ityContro /E /ements granted. It requires a continuing commitment to profes- sional excellence. We are formally dedicated to that commitment. 1 In 1979, we recognized the long -term significance of de- Independence, Integrity, and veloping a formal quality control program. In an effort to Objectivity I continue to maintain the standards of working excellence required by our firm, we joined the Private Companies Practice Section (PCPS) of the American Institute of Certi- fied Public Accountants. To be a participating member Personnel Management firm, you must obtain an independent compliance review of its quality control policies and procedures to ascertain the firm's compliance with existing auditing standards on Acceptance and Continuation the applicable engagements. The scope of the peer re- view is comprehensive in that it specifically reviews the of quality control policies and procedures of the participat- Clients and Engagements ing firm's accounting and auditing practice, including I their work product in various client industries. We be- lieve that our commitment to the program has been re- Engagement Performance warding not only to our firm, but primarily to our clients. I The external independent peer review of the elements of our quality control policies and procedures performed by an independent certified public accountant selected by Quality Control Monitoring the AICPA provides both us and our clients with the as- I surance that we continue to conform with the standards of the profession in the conduct of our accounting and auditing practice. I In October, 1998, Brent Millikan & Company, P.A. com- pleted its seventh successive voluntarily requested peer I li review. This comprehensive accounting practice review included a representative sample of all our firm's audit ing review and compilation engagements in a wide diver- 1 ti ` t sity of individual industries. As a result of this review, our firm obtained an unqualified opinion on our quality con - trol program and work procedures. Also for the seventh consecutive time our firm did not receive any Letter of Comments identifying any potential breakdowns in the 1 firm's quality control system. We are quite obviously very fr) proud of these accomplishments. For your review, we 1 have attached a copy of the independent peer reviewer's report on Brent Millikan & Company, P.A.'s quality control program dated October 22, 1998. 1 1 DISCUSSION WITH THE CITY OF EDGEWATER immunimmiv t�. CITY OF EDGEWATER UERNST &YOUNG City of Edgewater Agenda A L I G N E D W I T H Y O U R V I S I O N } Our Team to Serve the City of Edgewater two Florida Public Sector Leader t h r e e Adding Value to Florida Governments t h r e e Why Is Our Audit Process Different? f o u r GASB Statement No. 34, The New Financial Reporting Model s e v e n Integrating Information Systems ) Personnel Into Our Audit Process e i g h t eRisk Solutions n i n e Why Ernst & Young? t e n ) ) ) ) I > 1 City of Edgewater A L I G N E D W I T H Y O U R V I S I O N Relationships + Resources = Results "Being a leading Florida city, service expectations include: execution, on -time performance, reliability, no surprises, proactive service and useful business knowledge. You are a premier client, and I've put together a team that delivers. They are focused. They value the importance of each relationship with each person who makes up the City of Edgewater. They are committed to a smooth running engage- ment and to your success." John Vodenicker Coordinating Partner N O T E S A ts J ERNST & YOUNG 0009-0034083 FROM THOUGHT TO FINISH. " City of Edgewater A L I G N E D W I T H Y O U R V I S I O N Our Team to Serve the City of Edgewater John Vodenicker Coordinating Partner Coleman Loper Mike Pattillo Independent Review Partner Manager City of Edgewater Ted Barrett JERNST &YOUNG in formation Curtis Azama Systems Auditor Senior Ernst & Young Audit Staff N O T E S } } ) j J ERNST &YOUNG FROM THOUGHT TO FINISH. 0009.0094093 ) City of Edgewater A L I G N E D W I T H Y O U R V I S I O N Florida Public Sector Leader 90 government professionals, including 27 based in Orlando. _ 67 audit, tax and information systems professionals in our Orlando office. Experience basec on a history of auditing 100+ Florida governments and educational institutions. _ Professionals involved in standard - setting and professional organizations, such as the Government Accounting Standards Board, Association of School Business Officials, Government Finance Officers' Association, Florida Institute of Certified Public Accountants' Board of Governors and the Committee on Relations with State and Local Government. Select Florida Public Sector Clients Served City of Tallahassee -4 - Duval County Public Schools • Jacksonville Transportation Authority Lake County City of Holly Hill District School Board of Polk County / School District of Volusia County District School Board of Pasco County Seminole County Public Schools • Orange County Housing Finance Authority • School Board of Orange County City of Tarpon Springs _ • ' Greate Orlando Aviation Authority City of Tamp • •` School Board of Brevard County City of Clearwater • Osceola County St. Lucie County City of Largo School District of St Lucie County Hillsborough County • -- Palm Beach County • • City of Lake Worth Sarasota County • • City of Boynton Beach , .. Charlotte County City of Delray Beach Broward County School District - -Miami International Airport of Lee County `Dade County Housing Finance Authority � s N 0 T E S Adding Value to Florida Governments Arbitrage Rebate & Verification Government Services A Contract f Services - it Internal C:s:tion Computer Audit Plans Solid Waste Security Services Consulting Reviews Telecom lu, .tic ^.s Con lo ,,ter City of Ao implen wti cIcl Utility Rate Edgewater °k Studies lir Self Insurar3te /� eBusiness Actuarial , Electric Solutsons Servi es investment Deregulation fie Al i Consult th, Consulting U`' °�'Y Em to ee e 40 A cqu +s t«.n Benefits Bond A <t,i� tc:r'c.c' Offering Due Diligence Business Process Improvement Services J ,) J ERNST &YOUNG FROM THOUGHT TO FINISH.' 0009-0094093 ) ) City of Edgewater A L I G N E D W I T H Y O U R V I S I O N Why is Our Audit Process Different? The E &Y Audit Process & Audit Deliverables Cllant Nanr ., — • I GI�bAI PlO SSCS. n a L..+. «. -_ co-ikvelo Value Expe ( ! Insights _ .— . mannin g M .... •..nx� -_ Business Diagnostic • Internal Audit Services • Security CO- DEVELOP AUDIT RISK VALUE EXPECTATIONS PLANNING ASSESSMENT INSIGHTS A clear articulation A clear understanding Personalized industry of what's possible of what the key risks segment risk model. from an audit are, how they relate to relationship and the audit process and - commitment to what in the industry is measure how well affecting or creating we do against risks and opportunities. those expectations. T S IMF coonolowe ....... Client Nwn• AI _ measuring value results Client Financial _ 4 Statements Audit Opinion -- -� ) 1 ) ) ) AUDIT VALUE RESULTS SCORECARD 3 • A report on our performance • A report on E &Y's ) against expectations and a performance against quantification of the impact of expectations and a business insight and ideas on quantification of the impact of your business. business insight and ideas on ) your business. ) 3 7 ) J JERNST &YOUNG FROM THOUGHT TO FINISH.' 0009 -0094093 l f 0 U J City of Edgewater A L I G N E D W I T H Y O U R V I S I O N Why Is Our Audit Process Different? Leading -Edge Technology & Knowledge- Sharing Culture The Knowledge Web. The Ernst & Young Knowledge Web is a Lotus NotesTM intranet- = . 4` ,Karma • 't. .. based technology tool that provides access to several hundred SEGMENT A« Ernst & Young industry- focused databases relevant to you. . _ cATEGORiEs c cnY..x BAIfB6 C1IC S ,,.. MIQF1Mtl i Y4rtC11L'F.4£1C AEt* ( PKtIATIOH5& LSCANNG 5 � c a � MNWIN .,. if CH gr4N0�9OA - it ®6t>Rf.F T he Center for Business "' K r ar ...,, ,-ns EST K nowledgeTM (CBK) diry T he CBK is staffed with several hundred support staff to prov a firm wide knowledge management infrastructure as well as specialized on -call research and analysis. EY /Infolink EY /Infolink significantly reduces the time it takes our professionals to - stay abreast of what is happening in the public sector industry. 1 Credit Suisse First Boston (CSFB) CSFB provides our CREDIT FIRST professionals with access to SUISSE BOSTON articles, industry analysis, , ,... and published current -trend information. ` The Auditor's Workstation (AWS) AWS is a powerful automated work papers package for audit execution. AWS revolutionizes how our service teams share and collaborate on information during an audit. _ ', *16 - T E 5 ) AABSCast is a private, password - protected website for technical account- ) ing knowledge and service and puts EY /AART (Accounting Auditing and Research Tool) at your fingertips. TaxCast puts our vast array of g technical tax knowledge and ta insight at your disposal, including a comprehensive library of federal, state and local tax laws and regulations that affect you. PeopleCast is designed to provide leading -edge practices and state -of- the -art information to the human resources professional. ey.COt7" (www.ey.com) Ernst & Young's easy -to- navigate, user - friendly web site offers more than 1,000 pages of useful information. J ll ) SOPHISTICATED SUPPORT FOR OUR KNOWLEDGE CULTURE ) At the 1998 Computerworld Smithsonian Awards, Ernie and our Auditor's Workstation (AWS) had the distinction of being added to the National Museum of American History's Permanent Collection on Information Technology Innovation. ) PC Week Magazine's 1998 and 1999 Fast -Track 500 ranked Ernst & Young among the nation's top 500 information technology innovators. :J Ernst & Young has been ranked among the top 20 organizations ) worldwide in the recently announced 2000 Most Admired Knowledge EnterprisessM (MAKES"^) Award - the highest ranking of any professional services organization. ) j ) ) J ERNST &YOUNG j 0009 -0094093 FROM THOUGHT TO FINISH. t City of Edgewater A L I G N E D W I T H Y O U R V I S I O N Why Is Our Audit Process Different? Leading -Edge Technology & Knowledge- Sharing Culture Au ` s Workstat Award - winning audit performance tool D : Bookings to Cash on BRADVP 463608 as mail Consistency F' a Tools Window Help Step -by -step approach L,x I , �I m i 4. =1 l :1 ° =1 J F f J Full methodolog , . -•. ,_ 4 , online ) , Down to audit activity J I:e 1 i� 2 {1 �I�I�I xN'I level approval -I Name a) Determine our testing oine Can be updated ual plan .!Meeting note: • smilhdoc perform tests of controls to evair centrally Guidance and templates project �� Digital filter els o perating effectiveness of controls z Ratio analysis were reliminard evaluated as effect -� on all steps • put initial understand' SAS analytics.zip in Activity 4 3— Further Understand "\ spar a tier of understan J �yV i r.,,,,,,,,, ry Pent manage,. cation doc and Evaluate Processes and Related - - - 3 Meet with ,_J 4.1.4 Develop project • pie _ Controls. Ow objectives when J p lash findings. d 1 _ . c6.1 4.21dentily d - nt the le undertaking tests of controls include ® 4.3 Further unde stand pro s s and c s..............,_ .� Notes Link Shortcut 'Audit Value Idea..'.shb detersssmmg whether the identified 8 ,® 4.4 Des and es cute I. s controls: - .n z 66 ©14.4.9 Perham tease _ •Operated as we understood th ouid '.J.2 Evaluate Cher operate. 1 1 - 3.4.3 Update the cone sm - Were applied consistently through 4.4.4 Provide recommend.. ; Efficiency -lit period. - 4. Conclude the and vrepo npGed on a timely basis. // I Electronic reference J Remote working lann ModiidDate Virtual teaming resent to C6ent I KnooMedoeSu... Ahline gain bu... 27/04/98 09:1 Yes _ Airline value c... 27/04/98 Online review & approval e: Yes w Audit planning... 27/04/9809:34 Work sharing Background st... 27/04/98 09:34:_ 0J Meeting notes... 27/04/9819 :09:... Project management 'J� Closing resort... 26/04/98 09:22:... N. No Coe4bcts ._.-..-. . -._ .. I --) Harnessing technology to help teams deliver an effective, efficient audit in a consistent manner around the world. - D - .) _„} N 0 T E S "Information is indeed king, and an organization's ability to obtain it, analyze it, add value to it, distribute it, sell it, protect it, etc. will significantly impact its future. At the moment, however, E &Yis the only firm which is acting like information is truly its most important asset. As a ) result, I estimate that it still has about a three- to ) four-year lead on most competitors in this area." ) ) Emerson's 1998 Big Six Annual Report ) ) ) J ERNST &YOUNG ✓ FROM THOUGHT TO FINISH." ) City of Edgewater A I G N E D W I T H Y O U R V I S I O N GASB Statement No. 34, The New Financial Reporting Model GASB Statement No. 34 is probably the most significant change impacting Florida governments. Implementation of GASB Statement No. 34 will require a significant amount of time and resources (internal and external). As your business partner, Ernst & Young will work with the City of Edgewater in planning for the implementation of GASB Statement No. 34 through final implementation. Areas in which Ernst & Young can provide additional assis- tance in implementing the new reporting model include: • Readiness assessment • Education • General guidance and consultation • Fixed assets (inventories, assignment of useful lives, depreciation computations, etc.) • Infrastructure (inventories, valuation, condition assessment, etc.) • 1 l - Summary of Ernst & Young's Recommended Approach to Implement GASB's New Financial Reporting Model The following description summarizes the approach Ernst & Young recommends for governments to implement 1 Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial Statements— and Management's Discussion and Analysis— for State and Local Governments. • Prepare to implement the new financial reporting • Identify other applicable reporting changes and alter - -) model by understanding the requirements, learning natives, including new equity accounts, current and from the implementation experiences of other govern- noncurrent classifications for assets and liabilities, ments, and evaluating resources and options to make "special" items, and reporting of internal service changes funds with governmental activities _ • Establish a project steering committee to identify • Prepare pro forma financial statements following the major areas of concern and priorities, assign respon- new financial reporting model and update them as sibilities for making changes, and control project policy and reporting decisions are made to assist in identifying and resolving presentation, reconciliation, • Involve your auditor in key decisions to assure that and disclosure issues `) planned approaches and documentation provide suffi- cient audit evidence and to agree on timing of audit • Develop accrual information for government -wide activities reporting of governmental activities, including revenue accruals and related receivables, program income • Consider existing systems capability and alternatives versus general revenues, expense accruals and relat- for both short -term and long -term approaches to meet ed payables, and general long -term liabilities -' reporting requirements • Prepare to report general capital assets, including • Prepare an implementation plan that establishes an reevaluation of current capital asset policies, systems overall work plan with scheduled deadlines and com- capability to meet new requirements, depreciation municate and coordinate approach and needed policies, and accumulated depreciation and annual changes to departments, component units, and others depreciation ) involved in the implementation process • Prepare to report general infrastructure assets, includ- • Train financial, departmental, and component unit ing implementation date for retroactive reporting, personnel on the new financial reporting requirements appropriateness of "modified approach," availability and their responsibilities to provide the needed of historical information, approach to establishing ) information and communicate anticipated financial and valuing assets, and accumulated depreciation ) reporting changes to governmental officials and and annual depreciation ) management ) • Prepare a pro forma management's discussion and ) • Identify needed changes in fund structure and fund analysis to identify needed information to assign ) reporting, including fund reclassifications, preliminary responsibilities for its preparation determination of major funds, and budgetary reporting • Monitor progress and report accomplishments and status to management through final implementation ) ) ) J ERNST &YOUNG FROM THOUGHT TO FINISH. 0003.0094093 ) s e v e n ) ) City of Edgewater A L I G N E D W I T H Y O U R V I S I O N Integrating Information Systems Personnel Into Our Audit Process • Leading provider of information systems assurance and advisory services (ISAAS), offering a wide range of assistance to organizations across industries. • 40 full -time ISAAS professionals in Florida who are dedicated to information systems control, security and data analysis. • Supported by 700+ full -time ISAAS professionals in the U.S. with areas of expertise by application, technology and process. Our Information Systems Audit Approach • Focuses on the integration of the information technology risks and controls into the other aspects of the audit. • Assesses information technology from a business process perspective as follows. Planning the Developing and Operating the IT Environment Delivering IT IT Environment Solutions Objective: To ensure Objective: To acquire, Objective: To provide that IT plans are develop, deliver, and and maintain the operation properly aligned with maintain new or enhanced of the IT environment while the business' goals, business solutions involving ensuring the availability, objectives, and IT architecture to enable the confidentiality, and integrity strategies. organization to meet its of information systems to changing business meet the business' requirements. requirements. Organizing and Monitoring IT Processes Objective: To manage the three major IT processes above NOTES Analytical Tools and Knowledge T) ) ) State-of-the-art statistical techniques and artificial intelligence to analyze large volumes of data, such as purchasing and payroll amounts. D ) 1r SAS MOM Expanded Drill Down fm All Teats 171 A Firsi 1 Second Lest-Two 1 Rounding 1 Repeated I Summation 1 First-Three 1 ) Distribution of First-Two Digits: Purchase Amounts ) 5 00%. Spike at 75 P o ssible Authorization ) 00%. 4 '■ Limit? 4 4 ' 4 ) 3.00%. r 2.00%. 0 00% • -- ) 10 20 30 40 50 60 70 80 90 100 ) Fost-Two Diger ) — Expected% - Observed % - Upper Limit - Lower Lutut ) ) —.1C.NAWS Tools \ EY Analytios ) ) ) ) ) ) ) ) ) ) ERNST &YOUNG FROM THOUGHT TO FINISH. ) 0009-0094093 ) eigh t ) ) City of Edgewater A L I G N E D W I T H Y O U R V I S I O N eRisk Solutions As governments continue to make significant advances in conducting business over the - Internet, ensuring trust and security over information is an important concern. Ernst & Young's eRisk Solutions help you ensure that your IT systems build and maintain that trust and credibility — today and tomorrow. • We'II help you assess your ability to carry out your eBusiness strategy, and show you ways to close any gaps. • We'II help you identify your key IT risks, and offer a variety of effective, innovative solutions to mitigate them. • We'll evaluate how well you've addressed the fundamentals of eBusiness — security, controls, availability, reliability, assurance and trust — and recommend improvements to these critical areas before you set out into the unknown. • We'II work with you to develop efficient management processes — so you can get more from your IT, for less. l h1 0 T E CyberProcess Certification The biggest enabler of eCommerce growth may not be technical exper- -) tise. It's the trust that you build with your business partners, customers, ) employees and other stakeholders. Trust is an essential element in the basic eCommerce business models: • Business -to- Business — Your business partners want assurance from you that your business processes and supporting systems are well controlled and secured. In addition, they want independent verification that you are doing the right thing. • Business -to- Consumer — Surveys indicate that consumers are more likely to interact electronically if they have a greater sense of trust in their online transactions. Your business partners, employees, customers and other stakeholders ) want comfort that proper controls are in place within your eCommerce- related business processes. Ernst & Young's CyberProcess Certification (CPC) and Third Party Reporting solutions assist you in creating trust and credibility in all eCommerce models. These unique solutions provide your users with assurance that your business processes meet assertions established by enterprise management. After the successful completion of an engagement, your stakeholders will have reasonable assurance that your assertions are fairly stated. In ? addition, if appropriate, our CPC Seal may be placed within your web site to deliver electronic reports of your assertions and the E &Y attesta- ) tion report on them. Benefits to the City of Edgewater ) • Established Trust ) . Competitive Advantage ) • Managed Risks _) ) J J ERNST &YOUNG FROM THOUGHT TO FINISH.` ) 0006.0068966 n i n ti City of Edgewater A L I G N E D W I T H Y O U R V I S I O N Why Ernst & Young? NO SURPRISES EXPERIENCE VALUE ACCESSIBLE COMPREHENSIVE l .") N 0 T E S We are enthusiastic about the opportunity to serve you, and our team is in place and ready to hit the ground running on this engagement. There are many significant advantages the Ernst & Young team can bring to the City. Among the unique capabilities our team can offer the City are: • The personal commitment of our team members to contribute to your success and deliver quantifiable value to the City; • Public sector industry experience and expertise to serve you efficiently and proactively; • Stability, longevity and capability in serving Florida governments; • Continual communication with management; ) • Accessibility and responsiveness; • Shared vision based on co- developed expectations; .' • State -of -the -art technology; and • Significant local resources. ) ) ) ) ill ERNST &YOUNG FROna THOUGHT TO FINISH.' 0009-0094093