Submitted By
Steven Drazner, CFO
Reviewed By
LKS
Agenda Item Title
Title
A Resolution Approving a Consultant Services Agreement with Sikich LLP for Accounting and Financial Services in an Amount Not to Exceed $65,000 and Authorizing its Execution
End
Overview
Overview
This an agreement to provide temporary accounting services to the Finance Department. The Deputy CFO position has been vacant since Steve Drazner assumed the role of Interim CFO on April 4, 2016 and was subsequently promoted to the CFO position. The Village previously entered into a short term two month agreement with Sikich to provide accounting services for three days a week in order to assist staff with audit work preparation. That contract has since terminated and staff would like to execute a new agreement with Sikich to bring back the same contractual employee for approximately 25 hours per week over a six month term beginning with the first week of May 2017.
Body
Staff Recommendation
Approve the Resolution.
Fiscal Impact
The anticipated cost of the contract over the six month term is $65,000. Services under the contract will be provided at $100 per hour for approximately 25 hours per week. This expense will be charged to account #1001.41300.101.530658 and will require a budget amendment to move funds from Finance regular salaries in order to cover this expense.
Background
The Deputy CFO position has been vacant for over one year and the Finance Department recommends temporarily filling this void by contracting with Sikich LLP to bring in an accountant experienced with municipal finances on a part time basis over a six month period. This individual would assist staff with the BS&A payroll and human resources module conversions, day-to-day accounting, and budget preparation. The consultant would work approximately 25 hours per week over a six month period at $100 per hour which calculates to a do-not-exceed amount of $65,000. This expense would be paid by transferring the surplus budget from Finance Salaries due to the DCFO vacancy to Temporary Services. It has been estimated that the cost of this contractual service would be approximately the same as the six month cost as employing a Deputy CFO with benefits, shown as follows:
Estimated Deputy CFO salary=$95,000 ($48.72 per hour)
Estimated Fringe Benefit Amount (FICA/Medicare, IMRF, Health Insurance) 40%
Estimated Hourly Rate with Benefits ($48.72*1.40)=$68.21
Weekly Hours=37.50
Weekly Cost=$2,557
Sikich Weekly Expense=$2,500 (25 hours * $100/hour)
It is anticipated that Human Resources will post the Deputy CFO position again in August or September so that a permanent Deputy CFO may be hired by the end of the six month contractual assignment.
Alternatives
Not hire or execute agreement for temporary accounting services, thus saving approximately $65,000.
Previous Board Action
N/A
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A
Performance Management (MAP) Alignment
N/A