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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?

ANSWER: No. There are no expected major changes.

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?

ANSWER: No. The Authority has not had any “stop work” conditions in the past nor
has there been any amount in dispute under previous contracts. Also, the
annual fees are fixed.


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Addendum #3 December 21, 2010Final
RFP: Financial Audit Services
Hillsborough County Aviation Authority

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”

ANSWER: No. This is standard language.

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

ANSWER: Any Firm proposing dispute resolution procedures should include a copy
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?

ANSWER: The current contract contains the same Indemnification language as in
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?

ANSWER: It is the Authority’s intent to have the selected Company execute the
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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Addendum #3 December 21, 2010Final
RFP: Financial Audit Services
Hillsborough County Aviation Authority

intended by Authority. Company's services and deliverables shall conform
with all applicable federal and State laws, regulations and ordinances.

(ANSWER – Part 1) Yes.

(QUESTION – Part 2)
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.

(QUESTION – Part 3)
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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Addendum #3 December 21, 2010Final
RFP: Financial Audit Services
Hillsborough County Aviation Authority

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.

(QUESTION – Part 4)
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.

ANSWER: Yes. The Insurance Operating Directive is attached to this addendum as
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?

ANSWER: The Law Enforcement grant was last tested as a major federal program in
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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Addendum #3 December 21, 2010Final
RFP: Financial Audit Services
Hillsborough County Aviation Authority


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.

ANSWER: No. The Indemnification language already includes “except to the extent
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?

ANSWER: The Authority has been with the current firm for five years. Under
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?

ANSWER: See evaluation criteria as listed in Section 3.0 of the RFP.

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?

ANSWER: The Authority does not anticipate any changes in major programs or Type
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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Addendum #3 December 21, 2010Final
RFP: Financial Audit Services
Hillsborough County Aviation Authority

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.

ANSWER: No. The Authority has not entered into any significant new lease contracts
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?

ANSWER: Landesbank Baden-Württemberg (LBBW), the holder of the Letter of
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
for a portion of the outstanding amount will also be evaluated.

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?

ANSWER: The minimums that were included in the RFP were established by the
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Addendum #3 December 21, 2010Final
RFP: Financial Audit Services
Hillsborough County Aviation Authority

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?

ANSWER: The minimums that were included in the RFP were established by the

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.
A. General Ledger
B. Accounts Payable
C. Accounts Receivable
D. Capital Assets
E. Payroll
F. Utility billing
G. Other

ANSWER: The Authority has the following primary applications that impact the
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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Addendum #3 December 21, 2010Final
RFP: Financial Audit Services
Hillsborough County Aviation Authority

24. QUESTION: Please indicate if significant changes to the above referenced software
applications are currently contemplated.

ANSWER: As noted in the answer to question #6 in Addendum #2, the Authority
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.

_________________________________ _______________________
Proposer's signature Date
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