Submitted By
Steve Drazner, CFO
Reviewed By
A.M. Zayyad, Deputy Village Manager
Agenda Item Title
Title
A Resolution Approving a Professional Services Agreement for Auditing Services with Sikich LLP for Fiscal Years Ending December 31, 2023, 2024, 2025, 2026, and 2027 for an Aggregate Total Amount Not to Exceed $404,800, Authorizing its Execution and Waiving the Village’s Bid Process for the Agreement
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Overview
Overview
The Village’s five-year contract with Sikich LLP ended with the Fiscal Year 2022 audit. Due to the long-term relationship dating back to 2002 and the high satisfaction level that the Village has had with Sikich over these years, staff is recommending to forego the RFP process and execute a new five-year agreement with Sikich.
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Recommendation
Recommendation
Adopt the Resolution.
Background
Sikich LLP is a well-known and respected public accounting firm in the Midwest and particularly, in the Chicago area. The firm has a separate governmental accounting division and its partners or other employees are often asked to lead various training seminars through the Illinois Government Finance Officers Association.
The engagements include a thorough audit (financial and internal controls), completion of the Annual Comprehensive Financial Report (ACFR), TIF compliance reports (if needed), preparing Management Communication Letters, and the completion of a Single Audit (required for Federal grants expended over $750,000 per year).
The firm has proposed very reasonable increases each year ranging from 2.9% to 4.0% for the next five years which is significantly less than the current consumer price index (inflation).
The Village is required to have an annual financial audit pursuant to 65 ILCS 5/8-8-3. CFO Drazner is recommending that the Board waive the RFP process and execute a new five-year agreement with Sikich. The firm has proposed very reasonable fees as outlined below (please note that all amounts exclude the Library’s portion of the fees):
FY22 Base Year (final year under old contract) $73,496
FY23 $75,600
FY24 $78,000
FY25 $80,500
FY26 $83,700
FY27 $87,000
The annual fee increases will range from 2.9% to 4.0% which is lower than the current CPI and in line with the historical CPI percentages before hyperinflation began approximately two years ago.
Fiscal Impact
The total aggregate cost for the five years would be $404,800. The average annual cost during the duration of the agreement would be $80,960. This expense will be appropriated in the Finance Department’s operating budget.
DEI Impact
N/A
Alternatives
Reject recommendations and request staff go through the RFP process
Previous Board Action
RES 18-923 on September 17, 2018.
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A