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Addendum #3 December 21, 2010Final RFP: Financial Audit Services Hillsborough County Aviation Authority HILLSBOROUGH COUNTY AVIATION AUTHORITY Addendum #3 Financial Audit Services Tam

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Addendum #3 December 21, 2010Final

RFP: Financial Audit Services

Hillsborough County Aviation Authority

HILLSBOROUGH COUNTY AVIATION AUTHORITY

Addendum #3

Financial Audit Services

Tampa International Airport

Request for Proposals (RFP) #11-311-011

A copy of this signed Addendum #3 must be included with all submissions

Clarification Questions/Answers

1 QUESTION: On page 5 of the RFP it states as follows:

The selected Firm will also be responsible for report preparation and the printing and binding of a minimum of 50 copies of the audited financial statements, as well as a complete electronic PDF version

Please clarify that the Airport will prepare the initial draft of the financial statements and footnotes and MDA and SEFA and that the firm is merely typing and reproducing and binding the financial statements

ANSWER: Yes, the Authority will prepare the initial draft of the financial statements

including footnotes, MDA and SEFA The firm adds its reports, reproduces and binds the financial statements

2 QUESTION: Does the Authority expect any major changes in the amount of Federal or

State Financial Assistance in 2010/2011 or will the number of major programs change for the Federal/State Single Audit?

3 QUESTION: Attachment 2-Agreement 8.1 and 8.2, can these provisions apply to both

parties to the agreement?

ANSWER: No

4 QUESTION: Attachment 2-Agreement-Can a “Stop Work Provision” be included in

this agreement so that if there is an amount in dispute and it is unpaid, can work be stopped on that portion of the disputed work until resolved?

has there been any amount in dispute under previous contracts Also, the annual fees are fixed

This is trial version www.adultpdf.com

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5 QUESTION: Attachment 2-Agreement Article 21-can the following be added to this

article “provided, however, that (the firm) shall not be liable for any delays caused by the Authority or its personnel”

6 QUESTION: Attachment 2-Agreement-can a mediation provision be added to the

agreement?

of the procedures with its proposal The Authority reserves the right to negotiate or reject terms of any proposed dispute resolution procedures

7 QUESTION: Attachment 2-Agreement-with regard to the hold harmless and

indemnification provisions:

The AICPA advises that the indemnification of a client would impair the auditors independence under interpretation 101-1.A and interpretation 101-1.C Therefore, only to the extent caused by the Firm’s gross negligence or intentional misconduct, would a firm be able to agree to indemnify and hold the Authority harmless for claims, actions, damages, and liabilities asserted by you or third parties against you and which result from the services performed by the firm pursuant to this engagement Would this change to the proposed Agreement language present a problem

to the Authority?

Attachment 2, Agreement, to the RFP The Authority does not intend to modify this language as requested above

8 QUESTION: Attachment 2-Agreement-is the Authority willing to negotiate any other

provisions of this agreement?

Agreement without material modifications

9 QUESTION: Would you consider the following changes to the “Financial Audit

Services Agreement” which are highlighted in yellow:

(QUESTION – Part 1)

ARTICLE 6 - QUALITY ASSURANCE Company shall be solely responsible for the quality of all work performed

by Company, its employees or its subcontractors under this Agreement All services furnished by Company, its employees or its subcontractors shall be performed in accordance with the applicable professional standards, in a timely manner, and shall be fit and suitable for the purposes

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intended by Authority Company's services and deliverables shall conform with all applicable federal and State laws, regulations and ordinances (ANSWER – Part 1) Yes

8.2 Authority’s Remedies

In the event of any of the foregoing events of default enumerated in Section 8.1, Authority, may immediately terminate Company’s rights under Agreement and Company shall remain liable for all damages suffered by Authority The exercise of this remedy does not preclude the exercise of any other remedies provided by law Prior to such default determination, the Authority will provide reasonable written opportunity

to cure any deficiency that forms the basis for such default termination (ANSWER – Part 2) No, this is standard contract language

ARTICLE 9 - INDEMNIFICATION Company agrees to protect, defend, reimburse, indemnify and hold Authority, its agents, employees, and officers and each of them, free and harmless at all times from and against any and all claims, liability, expenses, losses, costs, fines and damages (including reasonable attorney fees) and causes of action of every kind and character (this is to the extent allowed by law except to the extent caused by Authority’s negligence) by reason of any claim for infringement of any patent, copyright, trademark, trade secret or other intellectual property rights, any damage to tangible property or the environment or bodily injury (including death) incurred or sustained by any party hereto, any agent or employee of any party hereto,

or any other person whomsoever, or any governmental agency, arising out

of or incident to or in connection with Company’s performance under this Agreement, Company’s use of the Airport, Company’s acts, omissions or operations hereunder or the performance, nonperformance or purported performance of Agreement or any breach of the terms of this Agreement Company recognizes the broad nature of this indemnification and hold harmless clause, and voluntarily makes this covenant and expressly acknowledges the receipt of $10.00 and such other good and valuable consideration provided by Authority in support of this indemnification in accordance with laws of the State of Florida This clause shall survive the termination of this Agreement Compliance with the insurance requirements as attached hereto shall not relieve Company of its liability

or obligation to indemnify Authority as set forth in this Article The

Company’s obligation to indemnify shall not extend or apply to any claim alleging that the Authority’s financial statements are inaccurate or incomplete or were not prepared in accordance with generally accepted accounting principles The Company has no obligation to indemnify the

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Authority from any claims resulting from the acts or omissions of the

Authority; and in no event would any indemnification provided under

this section be effected by the Company if doing so would violate the AICPA or other independence obligations.

(ANSWER – Part 3) No The purpose of the engagement is for the Company to opine

on the accuracy of the financial statements in accordance with generally accepted accounting principles

ARTICLE 10 - INSURANCE 10.1 Insurance Terms and Conditions The following minimum limits and coverages will be maintained by Company throughout the term of this Agreement In the event of default

on the following requirements, Authority reserves the right to take whatever actions deemed necessary to protect its interests Liability and property policies, other than Workers’ Compensation/Employer’s Liability, Automobile and Professional Liability, will provide that Authority is an additional insured

10.2 Required Coverage’s – Minimum Limits

B Business Automobile Liability The minimum limits of Business Auto Liability insurance (inclusive of any amounts provided by an umbrella or excess policy) covering all owned, hired and non-owned vehicles are: Each Occurrence – Bodily Injury and Property Damage Combined

$1,000,000 (ANSWER – Part 4) No This is standard contract language

10 QUESTION: Would it be possible to obtain the “Operating Directive” which is being

referred to in the following section of the agreement

10.3 Conditions of Acceptance This Agreement incorporates by reference Authority’s Operating Directive concerning contractual insurance terms and conditions in effect as of the date of this Agreement as may be amended from time to time

Attachment 1

11 QUESTION: When was the last time that the Law Enforcement or Canine grants

were tested as a major federal program for Single Audit purposes?

FY 2008 The Canine grant has not been tested as a major federal program as the amounts received do not exceed the $300,000 threshold

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12 QUESTION: How many people and at what levels did the current auditor (including the

MWBE, if applicable) use on your engagement?

ANSWER: All levels and a MWBE were used on the engagement It is difficult to

quantify the number of people, as some were here for only certain portions

of fieldwork See Addendum #2, Question #3 for the number of hours to perform the audit

13 QUESTION: We would like to request that the following be added to the end of the first

sentence under “Indemnification” in the Financial Services Audit Agreement: “to the extent caused by the Company’s actions.” We make this request in order to avoid exposure to claims that our beyond the control, actions or responsibility of our firm in serving the Authority

caused by the Authority’s negligence”

14 QUESTION: How long has the Authority been using the current audit firm

(E&Y)? What, if anything, would you like to see done differently during the audit process?

Authority policy, a RFP must be issued after either three or five years, if the two one-year options to the agreement are exercised The Authority expectations are for an on-going continuation of the performance of the audit in an efficient, timely manner

15 QUESTION: What attribute does your organization consider to be most important when

looking for a professional services provider, such as your audit firm?

16 QUESTION: How many major programs or Type A programs does the Authority

anticipate having for fiscal year 2011? How many major projects or Type

A projects does the Authority anticipate for the State SingleAudit? Do you expect grant activity to be significantly different in fiscal years 2012 or 2013?

A programs as it relates to the Single Audit The Authority does not anticipate grant activity to be significantly different in the next few fiscal years However, should new sources of funding becomes available, the Authority may apply for such funding An example of this was the ARRA funding in FY2009, of which the Authority received $8,000,000

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17 QUESTION: Did the Authority obtain any significant new debt during fiscal year 2010

in addition to the $3.6M obtained through its commercial paper program?

If so, please describe

ANSWER: No

18 QUESTION: Did the Authority enter into any significant new lease contracts during

fiscal year 2010? If so, please describe

during fiscal year 2010 that would impair its financial position The Authority as a landlord does routinely enter into leasing agreements with tenants at the airport and on Authority property

19 QUESTION: Does the Authority anticipate any significant new debt during fiscal year

2011?

Credit facility for the Authority’s commercial paper program, has verbally notified the Authority of their intention to exercise all of the early termination options under their public finance portfolio Under the Authority’s reimbursement agreement with LBBW, the next available early termination date is July 12, 2011 During November 2010, the Authority, working with its Financial Advisor began the process of evaluating the most economic alternatives to our commercial paper program, with $85 million currently outstanding under the program Management anticipates a smooth transition to a replacement facility or other form or short term debt A conversion to long term fixed rate debt

20 QUESTION: The Scope of Services outlined in Section 5 of the RFP indicates the

selected firm will be responsible for report preparation and printing & binding To clarify, will the Authority prepare and provide the financial statements or do you wish for the audit firm to assist in this process?

ANSWER: The Authority will prepare the initial draft of the financial statements

including footnotes, MDA and SEFA The firm adds its reports, reproduces and binds the financial statements

21 QUESTION: RFP Page 16, Item A.2, Information documenting that the Firm has four

years of experience since October 1, 2005 performing financial statement audits of governmental entities in accordance with GAS, including experience under the Single Audit Act and Circular A-133 Requirements: HOW MANY CLIENTS WOULD YOU LIKE SO SEE INCLUDED?

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Audit Committee The listing should be comprehensive enough to demonstrate that the Company has sufficient experience to qualify under the RFP

22 QUESTION: RFP Page 16, Item B.3, Information documenting that the Principal

Auditor has three years of experience since October1, 2005 as the Principal Auditor performing financial statement audits of governmental entities, in accordance with GAS including experience under the Single Audit Act and Circular A-133 Requirements: HOW MANY CLIENTS WOULD YOU LIKE TO SEE INCLUDED?

Audit Committee The listing should be comprehensive enough to demonstrate that the Company has sufficient experience to qualify under the RFP

23 QUESTION: Please identify the primary applications that impact the financial statement

reporting processes Indicate if the application is licensed software or custom developed, and whether the applications is web-based or accessible via the Internet

G Other

financial statements:

 Oracle eBusiness Suite v 11.5.10.2 for General Ledger, Payables, Projects, Purchasing, Inventory and Receivables Oracle was implemented in 1999 and currently utilizes Oracle Enterprise Edition 11.2.0.1; Web-based application, but not internet facing

 PropWorks v 5.3.1.0 is used for tenant billing and utilizes Oracle for database management; Web-based application, but not internet facing

 Sage FAS Gov 500 Asset Accounting v 2010.1 is used for fixed assets and currently utilizes a SQL server for database management; Client install program

 Paychex (Preview) v 7.3 is the third party payroll system; Client install program

 Stromberg v 4.1.641 is the time management software; Web-based application, but not internet facing

 ScanNet v 6.2.1 is the parking system (Federal APD); Client install program

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24 QUESTION: Please indicate if significant changes to the above referenced software

applications are currently contemplated

anticipates upgrading Oracle from its current version to R12 in either FY

2012 or FY 2013 There are no other significant changes anticipated by the Authority to current financial software applications

REMINDERS:

The deadline for submissions for this RFP is Wednesday, January 19, 2011, no later than 2:00 p.m., EST

I _ acknowledge receipt of this Addendum #3

_ _

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