Contract 2022-021A RDocuSign Envelope ID: A284C9BB-8D3C-465F-978D-D8B8453524D0 #2022-021A
FIRST AMENDMENT TO AGREEMENT FOR
AUDITING SERVICES
THIS AMENDMENT is entered into as of this 10 day of March 2022
and is to that certain Agreement No. 2017-54 dated June 13, 2017, hereinafter "the Agreement",
by and between the CITY OF CLERMONT, FLORIDA, a municipal corporation under the laws
of the State of Florida whose address is: 685 W. Montrose Street, Clermont, Florida, hereinafter
referred to as "CITY" and MCDIRMIT DAVIS & COMPANY, LLC., whose address is: 934 N.
Magnolia Ave., Suite 100, Orlando, FL 32803 hereinafter referred to as "CONTRACTOR". The
parties, in exchange for the mutual covenants contained herein and in the Agreement, agree as
follows:
1. This Amendment expressly modifies the Agreement and in the event of a conflict,
the terms and conditions of this Amendment shall prevail.
2. The Scope of Services and Compensation Schedule referred to and incorporated
into the Agreement is hereby amended to include annual auditing services for the City of Clermont
Community Redevelopment Agency (CRA) as more particularly described in Attachment "A"
attached hereto and incorporated herein.
3. All other terms and conditions set forth in the Agreement shall remain in full force
and effect and unchanged as agreed to by the parties.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
dates set forth below.
CITY OF CLERMONT
Docu Signed by:
431F57D413554D6... DS
Freddy L. Suarez,
ATTEST:
Docu Signed by:
T A Haws
3AD7F34905B344A...
Services Director
Tracy Ackroyd Howe, Nky Clerk
DocuSign Envelope ID: A284C9BB-8D3C-465F-978D-D8B8453524D0
MCDIRMIT DAVIS & COMPANY, LLC.
DocuSigned by:
By: E=KA�
7D7F19A1482...
(Signature)
Print Name: Tammy Campbell
Title: Partner
Date:
3/7/2022
DocuSign Envelope ID: A284C9BB-8D3C-465F-978D-D8B8453524D0� 1 TACHMENT "A"
934 North Magnolia Avenue, Suite 100
McDirmit Davis Orlando, Florida 32803
407-843-5406
www.mcdirmitdavis.com
March 1, 2022
City of Clermont Community Redevelopment Agency
The following represents our understanding of the services we will provide the City of Clermont Community Redevelopment
Agency.
You have requested that we audit the governmental activities, and major fund of the City of Clermont Community
Redevelopment Agency, as of September 30, 2021, and for the year then ended and the related notes, which collectively
comprise the City of Clermont Community Redevelopment Agency's basic financial statements as listed in the table of contents.
We are pleased to confirm our acceptance and our understanding of this audit engagement by means of this letter. Our audit will
be conducted with the objective of our expressing an opinion on each opinion unit applicable to those basic 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 and budgetary comparison schedules
be presented to supplement the basic financial statements. Such information, although not a part of the basic financial
statements, is required by the GASB, 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:
a. Management's Discussion and Analysis
Auditor Responsibilities
We will conduct our audit in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS)
and, in accordance with Government Auditing Standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the basic financial statements are free from material misstatement. An audit involves
performing procedures to obtain audit evidence about the amounts and disclosures in the basic financial statements. The
procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the
basic financial statements, whether due to error, fraudulent financial reporting, misappropriation of assets, or violations of laws,
governmental regulations, grant agreements, or contractual agreements.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the basic financial statements. If
appropriate, our procedures will therefore include tests of documentary evidence that support the transactions recorded in the
accounts, tests of physical existence of inventories, and direct confirmation of cash, investments, and certain other assets and
liabilities by correspondence with creditors and financial institutions. As part of our audit process, we will request written
representations from your attorneys, and they may bill you for responding. At the conclusion of our audit, we will also request
certain written representation from you about the basic financial statements and related matters.
Because of the inherent limitations of an audit, together with the inherent limitations of internal control, an unavoidable risk that
some material misstatements (whether caused by errors, fraudulent financial reporting, misappropriation of assets, or violations
of laws or governmental regulations) may not be detected exists, even though the audit is properly planned and performed in
accordance with U.S. GAAS and in accordance with Government Auditing Standards, Chapter 10.550, Rules of the Auditor
General, and Florida Statutes 163.387.
the trusted partner
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City of Clermont Community Redevelopment Agency Page 2 of 5
Engagement Letter
In making our risk assessments, we consider internal control relevant to the entity's preparation and fair presentation of the basic
financial statements 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. Our responsibility as auditors is limited to the period covered by our audit and does not
extend to any other periods.
We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for
us to modify our opinions or add emphasis -of -matter or other -matter paragraphs. 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.
Compliance with Laws and Regulations
As previously discussed, as part of obtaining reasonable assurance about whether the basic financial statements are free of
material misstatement, we will perform tests of City of Clermont Community Redevelopment Agency's compliance with the
provisions of applicable laws, regulations, contracts, and agreements. However, the objective of our audit will not be to provide
an opinion on overall compliance and we will not express such an opinion.
Management 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:
a. For the preparation and fair presentation of the basic financial statements in accordance with accounting principles
generally accepted in the United States of America, Chapter 10.550, Rules of the Auditor General, and Florida Statutes
163.387;
b. For the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
basic financial statements that are free from material misstatement, whether due to error, fraudulent financial reporting,
misappropriation of assets, or violations of laws, governmental regulations, grant agreements, or contractual
agreements; and
c. To provide us with:
i. Access to all information of which management is aware that is relevant to the preparation and fair
presentation of the basic financial statements such as records, documentation, and other matters;
ii. Additional information that we may request from management for the purpose of the audit; and
iii. Unrestricted access to persons within the entity from whom we determine it necessary to obtain audit
evidence.
d. For including the auditor's report in any document containing basic financial statements that indicates that such basic
financial statements have been audited by the entity's auditor;
e. For identifying and ensuring that the entity complies with the laws and regulations applicable to its activities;
f. For adjusting the basic 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 basic financial statements as a whole; and
g. For acceptance of nonattest services, including identifying the proper party to oversee nonattest work;
h. For maintaining adequate records, selecting and applying accounting principles, and safeguarding assets.
i. 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 the financials;
j. For the accuracy and completeness of all information provided; and
k. For compliance with Florida Statutes 163.371 Reporting Requirements.
With regard to the supplementary information referred to above, you acknowledge and understand your responsibility: (a) for the
preparation of the supplementary information in accordance with the applicable criteria; (b) to provide us with the appropriate
written representations regarding supplementary information; (c) to include our report on the supplementary information in any
document that contains the supplementary information and that indicates that we have reported on such supplementary
information; and (d) to present the supplementary information with the audited basic financial statements, or if the supplementary
information will not be presented with the audited basic financial statements, to make the audited basic financial statements
readily available to the intended users of the supplementary information no later than the date of issuance by you of the
supplementary information and our report thereon.
DocuSign Envelope ID: A284C9BB-8D3C-465F-978D-D8B8453524D0
City of Clermont Community Redevelopment Agency Page 3 of 5
Engagement Letter
As part of our audit process, we will request from management written confirmation concerning representations made to us in
connection with the audit.
With respect to any nonattest services we perform, such as drafting financial statements and proposing adjusting journal entries
to be reviewed and approved by management, the City of Clermont Community Redevelopment Agency'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 will not assume management responsibilities on behalf of City of Clermont Community Redevelopment Agency. However,
we will provide advice and recommendations to assist management of City of Clermont Community Redevelopment Agency in
performing its responsibilities.
Government Auditing Standards require that we document an assessment of the skills, knowledge, and experience of
management, should we participate in any form of preparation of the basic financial statements and related schedules or
disclosures as these actions are considered non -audit service.
Our responsibilities and limitations of the engagement are as follows:
• We will perform the services in accordance with applicable professional standards.
• This engagement is 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
Reporting
We will issue a written report upon completion of our audit of the City of Clermont Community Redevelopment Agency's basic
financial statements. Our report will be addressed to the governing body of City of Clermont Community Redevelopment Agency.
We cannot provide assurance that unmodified opinions will be expressed. Circumstances may arise in which it is necessary for
us to modify our opinions, add an emphasis -of -matter or other -matter paragraph(s), or withdraw from the 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 will not be
an objective of the audit and, therefore, no such opinion will be expressed. As required by Chapter 10.550, Rules of the Auditor
General, we will also include our report on an examination conducted in accordance with AICPA Professional Standards, AT-C
Section 315 regarding compliance with Florida Statutes Section 218.415, and Florida Statutes Sections 163.387(6) and (7).
Other
We understand that your employees will prepare all confirmations we request and will locate any documents or invoices selected
by us for testing.
If you intend to publish or otherwise reproduce the basic financial statements and make reference to our firm, you agree to
provide us with printers' proofs or masters for our review and approval before printing. You also agree to provide us with a copy
of the final reproduced material for our approval before it is distributed.
Regarding the electronic dissemination of audited financial statements, including financial statements published electronically on
your Internet website, you understand that electronic sites are a means to distribute information and, therefore, we are not
required to read the information contained in these sites or to consider the consistency of other information in the electronic site
with the original document.
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Engagement Letter
Provisions of Engagement Administration, Timing and Fees
During the course of the engagement, we may communicate with you or your personnel via fax or e-mail, and you should be
aware that communication in those mediums contains a risk of misdirected or intercepted communications.
We expect to begin our audit in March 2022 and to issue our reports no later than June 30, 2022.
Tamara Campbell is the engagement partner for the audit services specified in this letter. Her responsibilities include supervising
McDirmit Davis's services performed as part of this engagement and signing or authorizing another qualified firm representative
to sign the audit report.
Our fee for these services described in this letter will be as follows, inclusive of all costs and out -of pocket expenses, unless the
scope of the engagement is changed, the assistance that City of Clermont Community Redevelopment Agency has agreed to
furnish is not provide, or unexpected conditions are encountered, in which case we will discuss the situation with you before
proceeding. The audit fee will be as follows:
Year End
Audit Fee
September 30, 2021
$4,000
September 30, 2022
$4,000
September 30, 2023
$4,000
September 30, 2024
$4,000
Whenever possible, we will attempt to use the City of Clermont Community Redevelopment Agency's personnel to assist in the
preparation of schedules and analyses of accounts. This effort could substantially reduce our time requirements and facilitate the
timely conclusion of the audit. Further, we will be available during the year to consult with you on financial management and
accounting matters of a routine nature
During the course of the audit we may observe opportunities for economy in, or improved controls over, your operations. We will
bring such matters to the attention of the appropriate level of management, either orally or in writing.
You agree to inform us of facts that may affect the basic financial statements of which you may become aware during the period
from the date of the auditor's report to the date the financial statements are issued.
We agree to retain our audit documentation or work papers for a period of at least five years from the date of our report.
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.
DocuSign Envelope ID: A284C9BB-8D3C-465F-978D-D8B8453524D0
City of Clermont Community Redevelopment Agency
Engagement Letter
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The audit documentation for this engagement is the property of McDirmit Davis and constitutes confidential information.
However, we may be requested to make certain audit documentation available to regulators pursuant to authority given to it by
law or regulation, or to peer reviewers. If requested, access to such audit documentation will be provided under the supervision
of McDirmit Davis's personnel. Furthermore, upon request, we may provide copies of selected audit documentation to regulators.
The regulators may intend, or decide, to distribute the copies of information contained therein to others, including other
governmental agencies.
Please sign and return the attached copy of this letter to indicate your acknowledgment of, and agreement with, the
arrangements for our audit of the basic financial statements including our respective responsibilities.
We appreciate the opportunity to be your financial statement auditors and look forward to working with you and your staff.
Sincerely,
McDirmit Davis, LLC
***************************************************************
RESPONSE:
This letter correctly sets forth our understanding.
City of Clermont Community Redevelopment Agency
Acknowledged and agreed on behalf of City of Clermont Community Redevelopment Agency by:
DocuSigned by:
431F57D413554D6...
Title: Procurement Services Director