Auditing Services-3VILLAGE OF OAK BROOK
PROFESSIONAL SERVICES AGREEMENT
This AGREEMENT ("Agreement") is dated as of
the 13"' day of October, 2015 ("Effective Date"), and is by
and between the VILLAGE OF OAK BROOK, an Illinois
municipal corporation ("Village"), and BAKER TILLY
VIRCHOW KRAUSE, LLP, 1301 West 22nd Street, Suite
400, Oak Brook, Illinois 60523 ("Consultmrt").
IN CONSIDERATION OF the recitals and the
mutual covenants and agreements set forth in the Agreement,
and pursuant to the Village's statutory powers, the parties
agree as follows:
SECTION 1. SCOPE OF SERVICES.
A. Services. The Village retains the
Consultant to perform, and the Consultant agrees to perform,
all necessary services to perform the work in connection
with the project identified below ("Services"), which
Services the Consultant shall provide pursuant to the terms
and conditions of this Agreement:
Base auditing services and Tax Increment
Financing reporting services ("TIF Report") for the
Village's 2015, 2016, and 2017 fiscal years, which
Services are more fully described in the
Consultant's Response to the Village's Request for
Proposal, dated July 2015, which is attached hereto
as Exhibit A.
B. Term of Agreement. The term of this
Agreement shall begin on the Effective date and end after
the completion and delivery to the Village of the base audit
and TIF Report for the 2017 fiscal year. The Village, in its
sole discretion, may extend the Term of this Agreement for
two one-year periods by providing the Consultant written
notice.
SECTION 2. TIME OF PERFORMANCE. The
Consultant shall perform the Services as mutually agreed
upon by Village and Consultant, but in no event shall the
Consultant provide the Village the completed annual audit
later than May 31" of each year during the Term of this
Agreement ("Three of Perfornimrce").
SECTION 3, COMPENSATION.
A. Agreement Amount. The total amount
billed by the Consultant for the Services under this
Agreement shall be as follows:
Fiscal Year
Base
Audit
T.I.F.
Report
2015
$29,500
$2,300
2016
$30,390
$2,370
2017
$31,300
$2,440
2018 (if the Village exercises its
option pursuant to Section 1. B)
$32,240
$2,510
2019 (if the Village exercises its
option pursuant to Section 1. B)
$33,210
$2,590
The Consultant shall not bill, and the Village shall not be
liable for, any additional fees or charges without the prior
express written authorization of the Village Manager.
B. Additional Services. 'The Village may, in
its sole discretion, add to the Services a single audit during
the Term of this Agreement. In the event that the Village
exercises its option to add a single audit, the single audit
shall be deemed to be pail of the Services and governed by
the terms of this Agreement. The total amount billed by the
Consultant for a single audit shall be as follows:
Fiscal Year
Single Audit
2015
$4,000
2016
$4,120
2017
$4,240
2018 (if the Village exercises its
option pursuant to Section 1. B)
$4,370
2019 (if the Village exercises its
option pursuant to Section 1. B)
$4,500
C. Taxes Benefits and Royalties. Each
payment by the Village to the Consultant includes all
applicable federal, state, and Village taxes of every kind and
nature applicable to the Services as well as all taxes,
contributions, and premiums for unemployment insurance,
old age or retirement benefits, pensions, annuities, or similar
benefits and all costs, royalties, and fees arising from the use
of, or the incorporation into, the Services, of patented or
copyrighted equipment, materials, supplies, tools,
appliances, devices, processes, or inventions. All claim or
right to claim additional compensation by reason of the
payment of any such tax, contribution, premium, costs,
royalties, or fees is hereby waived and released by
Consultant.
SECTION 4, REPRESEN'T'ATIONS OF
CONSULTANT. The Consultant represents and certifies
that the Services shall be performed in accordance with the
standards of professional practice, care, and diligence
practiced by recognized consultants in performing services
of a similar nature in existence at the Time of Performance.
The representations and certifications expressed shall be in
addition to any other representations and certifications
expressed in this Agreement, or expressed or implied by law,
which are hereby reserved unto the Village.
The Consultant farther represents that it is financially
solvent, has the necessary financial resources, and is
sufficiently experienced and competent to perform and
complete the Services in a manner consistent with the
standards of professional practice by recognized consultants
providing services of a similar nature. Joseph Lightcap shall
be primarily responsible for carrying out the Services on
behalf of the Consultant (,%ey Projeel PersouneP'). The
Key Project Personnel shall not be changed without the
Village's prior written approval. The Consultant shall
provide all personnel necessary to complete the Services.
SECTION 5. INDEMNIFICATION; INSURANCE;
LIABILITY.
A. Indemnification. The Consultant agrees
to indemnify, hold harmless, and defend (o pay the Village
for the costs of defense) the Village and any of its officers,
employees, or agents from and against all liability, claims,
demands, and causes of action arising out of or I -elated to any
loss, damage, injury, death, o loss or damage to property
resulting from any negligence, errors or omissions by the
Consultant in the performance of this Agreement, unless
such loss, damage, injury, or loss or damage to property
results from or arises out of the negligent actions or
omissions by the Village or its officers, employees, or
agents.
B. Insurance. The Consultant acknowledges
and agrees that the Consultant shall, and has a duty to,
maintain adequate insurance, in an amount, and in a form
and from companies, acceptable to the Village. The
Consultant's maintenance of adequate insurance shall not be
construed in any way as a limitation on the Consultant's
liability lot- losses or damages under this Agreement.
C. No Personal Liability. No elected or
appointed official, or employee of the Village shalt bo
personally liable, in law or in contract, to the Consultant as
the result of the execution of this Agreement.
SECTION 6. GENERAL PROVISIONS,
A. Relationship of the Parties. The
Consultant shall act as an independent contractor in
providing and performing the Services. Nothing in, nor done
pursuant to, this Agreement shall be construed to: (1) create
the relationship of principal and agent, employer and
employee, partners, or joint venturers between the Village
and Consultant; or (2) to create any relationship between the
Village and any subcontractor of the Contractor.
B. Conflicts of Interest. The Consultant
represents and certifies that, to the best of its knowledge: (1)
no Village employee or agent is interested in the business of
the Consultant or this Agreement; (2) as of the date of this
Agreement, neither the Consultant nor any person employed
or associated with the Consultant has any interest that would
conflict in any manner or degree with the performance of the
obligations under this Agreement; and (3) neither the
Consultant nor any person employed by o associated with
the Consultant shall at any time during the Term of this
Agreement obtain or acquire any interest that would conflict
in any manner or degree with the performance of the
obligations under this Agreement.
C. No Collusion. The Consultant represents
and certifies that the Consultant is not barred from
contracting with a unit of state Or local government as a
result of (1) a delinquency in the payment of any tax
administered by the Illinois Department of Revenue unless
the Consultant is contesting, in accordance with the
procedures established by the appropriate revenue act, its
liability for the tax or the amount of the tax, as set forth in
Section 11.42.1-1 et seq. of the Illinois Municipal Code, 65
1LCS 5/11-42.1-1 et seq.; or (2) a violation of either Section
33E-3 or Section 33E-4 of Article 33E of the Criminal Code
of 1961, 720 ILCS 5133E-1 et seq. If at any time it shall be
found that the Consultant has, in procuring this Agreement,
colluded with any other person, firm, or corporation, then the
Consultant shall be liable to the Village for all loss or
damage that the Village may suffer, and this Agreement
shall, at tite Village's option, be hull and void.
D. Termination. Notwithstanding any other
provision hereof, the Village may terminate this Agreement
at any time upon t5 days prior written notice to the
Consultant. In the event that this Agreement is so
terminated, the Consultant shall be paid for Services actually
performed and reimbursable expenses actually incurred, if
any, prior to termination, not exceeding the value of the
Services completed.
E. Compliance with Laws and Grants.
Consultant shall give all notices, pay all fees, and take all
other action that may be necessary to ensure that the
Services are provided, performed, and completed in
accordance with all required governmental permits, licenses,
or other approvals and authorizations that may be required in
connection with providing, performing, and completing the
Services, and with all applicable statutes, ordinances, rules,
and regulations, including without limitation the Fair Labor
Standards Act; any statutes regarding qualification to do
business; any statutes prohibiting discrimination because of,
or requiring affirmative action based on, race, creed, color,
national origin, age, sex, or other prohibited classification,
including, without limitation, the Americans with
Disabilities Act of 1990, 42 U.S.C. H 12101 et seq., and the
Illinois Human Rights Act, 775 ILCS 511-101 et seq.
Consultant shall also comply with all conditions of any
federal, state, or local grant received by the Village or
Consultant with respect to this Agreement or the Services.
Consultant shall be solely liable for any fines or civil
penalties that are imposed by any governmental or quasi -
governmental agency or body that may arise, or be alleged to
have arisen, out of or in connection with Consultant's, or its
subcontractors, performance of, or failure to perform, the
Services or any part thereof. Every provision of law
required by law to be inserted into this Agreement shall be
deemed to be inserted herein.
f. Default. If it should appear at any time
that the Consultant has failed or refused to prosecute, or has
delayed in the prosecution of, the Services with diligence at
a rate that assures completion of the Services in full
compliance with the requirements of this Agreement, or has
otherwise failed, refused, or delayed to perform or satisfy the
Services or any other requirement of this Agreement ("Event
of Defordt"), and fails to cure any such Event of Default
within ten business days after the Consultant's receipt of
written notice of such Event of Default from the Village,
then the Village shall have the right, without prejudice to any
other remedies provided by law or equity, to (1) terminate
this Agreement without liability for further payment; or (2)
withhold from any payment or recover from the Consultant,
any and all costs, including attorneys' fees and
administrative expenses, incurred by the Village as the result
of any Event of Default by the Consultant or as a result of
actions taken by the Village in response to any Event of
Default by the Consultant.
G, Assi ng meet. This Agreement may not be
assigned by the Village or by the Consultant without the
prior written consent of the other party.
H. Notice. All notices required or permitted
to be given under this Agreement shall be in writing and
shall be delivered: (1) personally; (2) by a reputable
overnight courier; or by (3) by certified mail, return receipt
requested, and deposited in the U.S. Mail, postage prepaid.
Unless otherwise expressly provided In this Agreement,
notices shall be deemed received upon the earlier of: (a)
actual receipt; (b) one business day after deposit with an
overnight courier as evidenced by a receipt of deposit; or (c)
three business days following deposit in the U.S. mail, as
evidenced by a return receipt. Notices and communications
to the Village shall be, addressed to, and delivered at, the
following address:
Village of Oak Brook
1200 Oak Brook Road
Oak Brook, Illinois 60523
Attention: Sharon Dangles,
AVMJFinance Director
Notices and communications to the Consultant shall be
addressed to, and delivered at, the following address:
Baker Tilly Virchow Krause, LLP
1301 West 22"a Street, Suite 400
Oak Brook, Illinois 60523
Attention: Joseph M, Lightcap, CPA,
Partner
1, Waiver. Neither the Village nor the
Consultant shall be under any obligation to exercise any of
the rights granted to them in this Agreement except as it
shall determine to be in its best interest from time to time.
The failure of the Village or the Consultant to exercise at any
time any such rights shall not be deemed or construed as a
waiver of that right, nor shall the failure void or affect the
Village's or the Consultant's right to enforce such rights or
any other rights.
J. Third Party Beneficiary. No claim as a
third party beneficiary under this Agreement by any person,
firm, or corporation shall be made or be valid against the
Village.
K. Governing Law; Venue. This Agreement
shall be governed by, construed and enforced in accordance
with the internal laws, but not the conflicts of laws rules, of
the State of Illinois. Venue for any action arising out of this
Agreement shall be in the Circuit Court for DuPage County,
Illinois.
K. Exhibits. If any conflict exists between this
Agreement and any exhibit attached hereto, the terms of this
Agreement shall prevail.
[SIGNATURE PAGE FOLLOWS]
ATTEST:
By. Village Clerk
Charlotte Pwss,
ATTEST:
BAKLRTILLY Vlni -',' ,�^••-----
By:
Title, its:
D_M�C( " `_ �_—._--
EXHIBIT A
Value-added professional auditing services for
August 3, 2015
1' lnlnleymEe@.17171ei
BAKER TILLY
INTERNATIONAL
SUBMITTED BY
Baker Tilly Virchow Krause, LLP
1301 W. 22nd Street, Suite 400
Oak Brook, IL 60523
Mr. Joseph M. Lightcap, CPA
Partner
630 645 6215
joe.Iighicap@bakertilly.com
BAKER TILLY
Candor. Insight. Results.
BAKE R T I L LY
Baker Tilly Virchow Krause, LLP
1301 W. 22°" Street, Suite 400
Oak Brook IL 60523
tel 630 990 3131
fax 630 990 0039
bakertilly.com
August 3, 2015
Ms. Rania Serences
Senior Purchasing Assistant
Village of Oak Brook
1200 Oak Brook Road
Oak Brook, IL 60523
Dear Ms. Serences
Baker Tilly Virchow Krause, LLP (Baker Tilly) looks forward to assisting the Village of Oak
Brook (the Village) with your audit needs. Based upon the Village's Request for
Proposals (RFP), the information shared at the pre-bid conference, and upon our
extensive experience with Illinois municipal audits, we are confident we can provide
quality audit services. We understand that the Village is requesting audit services for the
fiscal years ending December 31, 2015 through December 31, 2017, with an option for a
fourth and fifth year ending December 31, 2018 and 2019.
We believe Baker Tilly is best qualified to perform the engagement for these, among
other, differentiating factors:
> A team of 220 professionals dedicated to the state and local government industry;
more than 25 of these dedicated professionals are located in our Oak Brook office
> Attentive, Exceptional Client Service; we meet or exceed deadlines
> Large firm resources with local client service
> Value-added services such as state and local government webinars and newsletters
> New perspective: a fresh point of view can help identify relevant opportunities where
we can improve operational efficiencies and internal control
> Substantial use of technology in the audit process
> Worm -free transition: ninety-seven percent of clients who switch to Baker Tilly
express a high satisfaction with their transition to our firm
Our proposal details Baker Tilly's tailored approach to working with you to accomplish
your objectives as well as information we believe will help you make your decision. We
also included testimonials to show how we provide knowledge and experience -based
insights that create measurable value for our clients. Our response is laid out to follow the
requested sections of your RFP.
We believe that the selection of our firm will provide the Village with the best possible
team to serve you. Baker Tilly desires are to build long-term relationships with our clients.
Our goal is to provide valuable service and contribute to your success by delivering
solutions that are just right for you.
Ms. Rania Serences
Village of Oak Brook
August 3, 2015
Page 2
We appreciate the opportunity to submit this proposal and welcome the opportunity to
discuss any specific aspects. I am authorized to make representations and execute
engagements on behalf of the Partnership of Baker Tilly Virchow Krause, LLP.
If you have any questions regarding our proposal, or if you need any additional
Information, please feel free to contact me at 630 645 6215.
We look forward to a successful and lasting relationship as your Valued Business Advisor.
Sincerely,
BAKER T ILLY VIRCHOW KRAUSE, LLP
Joseph M. Li ht Ia Partner
9 P,
630 645 6215
joe.Jightcap@bakertilly.com
Understands ng your needs; achieAng your obgectNes
Baker Tilly's devotion to government organizations Is manifested in our public sector
practice group, a group with a commitment spanning more than 50 years and a team of
more 'than 220 professionals—including 45 partners—
dedicated entirely to serving governmental clients. We
understand the issues governments face, providing
hundreds of thousands of hours annually, annually, toU
the public sector. Our extensive experience provides us��
with the specialized knowledge and insight to find
effective solutions.
We are one of the few CPA firms
Our specialized focus allows our professionals to with a state and local government
immerse themselves in the issues and opportunities group dedicated entirely to serving
you face, governmental clients.
Why choose Baker Tilly?
We believe Baker Tilly is the right fit for serving the Village's audit needs for many
reasons. As you evaluate professional service providers, we encourage you to consider
the following factors that differentiate us in the marketplace and that we believe are most
relevant to you.
Baker Tilly organizes our firm by industry specialization rather than service discipline. Our
professionals offer clients a deep understanding of their respective industries. Your industry -
focused team will possess specialized knowledge to help you improve operational
efficiencies, tighten processes, and address your unique needs.
Our Public Sector team consists of professionals who are dedicated to serving governmental
organizations. Because of this specialized focus, the Village's engagement team will
understand the unique financial accounting and reporting issues that governmental
institutions face and will have the experience to conduct the engagement efficiently. Our
familiarity with the critical risk areas in the financial statements which need to be addressed
allows us to plan our audits to focus our time and energy on these areas.
Village of Oak Brook Page 1 3
Executive summary
Baker Tilly is sensitive to our clients' busy schedules and deadlines. We start even
engagement with a mutually agreed-upon timeline. Using that timeline, we develop and
commit to a customized Client Service Plan to ensure there are no surprises along the way;
and at every step, we let you know where things stand. We rely on our clients' definition of
satisfaction—not our own—because your opinion matters most.
Baker Tilly surveys clients regularly, makes changes based on feedback, and holds each
member of our teams accountable for client satisfaction. To us, Exceptional Client Service
means responding immediately to your feedback and questions, communicating frequently
and openly, and proactively bringing new ideas to the table. Most important, it means making
yourtop priorities ourtop priorities.
Baker Tilly is the right fit for the Village. We are large enough to offer the professional
capabilities you need; yet, we have a local -firm focus that ensures you receive responsive,
personalized attention. Our service team will maintain close communication with you to
address issues before they become problems, and we offer vast, firm wide resources and a
high level of involvement from our partners. This all translates to a demonstrated ability to
meet or beat deadlines and provide quality deliverables.
Our goal is to be your Valued Business Advisor. We translate active industry involvement
into complimentary interactive webinars and timely newsletters with content highly relevant
to our state and local government clients. New standards are now being issued on a regular
basis by standard-setting bodies. To better prepare our clients for the changes resulting from
these standards and to share best practices, we offer client -training webinars. These
webinars are free to our clients and qualify for continuing professional education (CPE).
Annually, we speak at numerous accounting, financial, and management seminars and
workshops in Illinois and throughout the nation. We also regularly provide newsletters and
industry alerts with updates and answers to your financial and governmental questions. Our
clients receive the benefit of our industry involvement through our quarterly newsletter,
Government Connection, where we communicate any pertinent news and industry updates.
Our latest issue included topics like: New time and effort reporting requirements under OMB
Uniform Guidance; Fund balance levels: What works for your government?; Five easy
internal controls your government should implement and several others. As a client, you may
choose to receive quarterly newsletters and alerts directly via e-mail. You can also access
past newsletters and webinars on our website.
Additionally, your partner in charge and engagement team members will be available to
answer questions as they arise.
Village of Oak Brook Page 1
As we collaborate with you the first time, our fresh point of view can help identify relevant
opportunities where we can Improve operational efficiencies and internal controls. We are
dedicated to making this transition process not only smooth, but beneficial for the Village.
You won't need to spend time explaining your business to us, as our staff is already
knowledgeable about the special needs and circumstances affecting your industry. We will
coordinate the review of predecessor documents and work with management on your
timeline to ensure the process is as painless as possible.
Baker Tilly is proud to have been progressive in our integration of technology into the audit
process. Some technology highlights include:
> Utilization of a secure website, or "portal", which allows for an effective, efficient, and
organized means to transfer information from the Village to the audit team, including
workpapers and trial balances.
> Use of data extraction software allows for in-depth, yet quick, analysis of large
volumes of data. This Includes the ability to review client transactions for duplicate
vendor payments and other transactions that might require additional audit testing.
Changing accounting firms should be a seamless process: one that moves you on a positive
path forward, not gives you cause for concern. Baker Tilly understands the uncertainty that
can exist when moving from one firm to another, and we actively take steps to ensure that
new clients have a positive experience with no interruptions. In fact, we survey clients who
switch to Baker Tilly, and the results are impressive: 97% of our clients express a high
satisfaction with their transition to our firm.
Provable results; our clients speak for us
Baker Tilly's director of client insights reaches out to clients with surveys and interviews
to learn what we're doing right and/or how we can improve. Below and throughout our l
proposal are some recent comments we received: vp 1_70
"We truly appreciate our working relationship with Baker Tilly. We have been
clients for a number of years and our audit teams have always been
knowledgeable, dependable and service orientated. The audit process here is not a
painful process due to their hard work and thorough preparation. Every time I call
with a question, I'm immediately contacted with an answer. Thank you."
Finance Director, Illinois village client
Village of Oak Brook
Page 1 5
About Baker Tilly
Baker Tilly Virchow Krause, LLP originated in 1931 with one central objective: to use our
expertise to help our clients improve their operations. Originally a certified public
accounting firm, we have grown steadily over the years, broadening aur service offerings
and expanding our geographic presence to meet the evolving needs of our clients. Baker
Tilly is a nationally recognized, full-service accounting and advisory firm whose
specialized professionals connect with clients and their businesses through refreshing
candor and clear Industry insight.
Headquartered in Chicago, Baker Tilly Is an independent member of Baker Tilly
International, a worldwide network of independent accounting and business advisory
firms in 137 countries, with 27,000 professionals. The combined worldwide revenue of
independent member firms is $3.4 billion.
Below are some key facts about Baker Tilly'.
Provides a wide range of accounting,
tax, assurance, and consulting services
by more than 2,500 total staff members,
including 292 partners
> Baker Tilly is ranked as the 12`h largest
certified public accounting firm in the
United States, according to Accounting
Today's 2014 "Top 100" list
> Baker Tilly has more than 200 employees in
Illinois
BAKER TILLY
290 ffi, c es I 1 2 States
We will adopt a team approach to the Village's engagement, blending our government -
focused professionals with experienced specialists in the service areas and departments
of the Village. This combination of industry -specific expertise ensures you will be working
with knowledgeable professionals who understand the Village and the challenges you
face—and can create innovative solutions to help you overcome them.
And, because the Village will be working with a single engagement team, you can expect
to receive consistent, efficient, and exceptional service.
From the start, Baker Tilly has understood that our business demands absolute integrity,
a belief in the value of trusted relationships, and a willingness to collaborate with—not
dictate to—every client. We will deepen and enhance our partnership with the Village as,
together, we work to help you realize your vision.
Baker Tilly has existed for 80 years—and local governments were some of our first
clients.
Village of Oak Brook Page 1 6
r
;Yy
Firm Qualifications
Independence
Baker Tilly and Its partners and staff are independent with respect to the Village as
defined by generally accepted auditing standards and the US General Accounting
Office's Government Auditing Standards, and we will maintain an independent attitude
and appearance through the full term of the engagement.
We have no knowledge of any business, investment, or family relationships with the
Village, its agencies, officials, department heads, or other employees and personnel of
our firm that would impair our independence.
License to practice in the State of Illinois
Baker Tilly is licensed to practice public accounting in thirty-one states including the State
of Illinois. State licensing certifications are documented and can be provided upon
request. The firm's license number is: 066.004260. All key professional staff assigned to
the Village's engagement are licensed to practice public accounting.
Office location serving the Village
Below is a breakdown by level of our government team in Oak Brook, Illinois as well
as the team, by staff level, assigned to your engagement; we do not plan to use part-time
staff on the Village's engagement.
Audit staff employee ' Total number Total Number Full-ne(
classification CPAs assignee
in office Villa
Partnersiprincipals
Senior managers
Managers
Senior accountants
Staff accountants
At any time, we are able to draw upon additional public sector team members located
throughout the firm to provide solutions that are just right for you.
Village Of Oak Brook Page 1 7
Firm Qualifications
Our industry specialization approach
Baker Tilly formalized our public sector specialization more than 50 years ago. We
recognized the complexity of this environment and
organized the partners and staff into our public sector` /
service group. This industry specialization approach municipalities /1`Consulting 1
allowed us to provide specialized training and J JJ
continuing education to our staff, assuring you i \
of an audit team with the necessary
r
knowledge and skills you desire to identify
the strength of internal controls and Counties single auditsl
processes, and with the specialization of
your industry to identify key indicators that Public sector'
are critical to your government. �� '
industry lines
Our industry -specific approach will ensure r, /
the Village is working with a team that is G Utilities and
g 9 K•12 transit
Truly dedicated to state and local \; �\
governments, translating into better service
and greater value. `�%
i. Higher
I /
> Our specialists keep abreast of tfhe new Not-for-profit educationI
developments and trends that may impact your \\ \
industry and will regularly provide newsletters,
trainings, and industry alerts with updates and answers to your financial and
governmental questions.
Our specialists are active in national and state organizations, participate in ongoing
continuing education to obtain industry certifications, and speak and author articles
on industry trends.
Our devotion to government organizations is manifested in our public sector practice
group, a team of more than 220 professionals—including 45 partners—dedicated entirely
to serving governmental clients. We understand the issues governments face, providing
hundreds of thousands of hours annually hours, annually, to the public sector. Our
extensive experience provides us with the specialized knowledge and insight to find
effective solutions.
We are one of the few CPA firms with a state and local government group
dedicated entirely to serving governmental clients.
Our public sector clients rely on our expertise to meet their specific auditing, accounting,
and operational needs. From helping you manage and optimize your resources to clearly
and accurately reporting your funding sources and patterns, you can expect a practical
approach, technical insight, and a thorough understanding of the governmental audit
world to work on the Village's behalf, delivering the precise services you need, when you
need them.
Village of Oak Brook Page 1 8
r
ks
Firm Qualifications
Firm preparedness to implement new GASB requirements
As we mentioned in our Executive Summary, we have chosen to provide leadership to
industry organizations through our involvement as authors, speakers, trainers, and
promoters of the advancement of government accounting and auditing so we can provide
you with the timely information you need about current issues. We will work with the
Village to ensure you are prepared for any applicable GASB changes. When new GASBs
are issued we quickly assess the impact on our clients. We communicate the impact on
the Village's operations and financial statements through direct communication with the
Finance Department as well as through our complimentary webinars and quarterly
newsletters. We will then work with the Village to develop an implementation plan that
outlines the action items that the Village and Baker Tilly will perform to successfully
implement the standard. The implementation plan will also include a timeline to ensure
minimal disruption to the Village's operations and the audit timing.
Among our commitment to keep you prepared for any new GASB changes, we have
provided a Baker Tilly professional to serve as a Fellow in the GASB Practice Fellow
Program, Oak Brook manager Susannah Baney was selected by the GASB staff and
board for this two-year program.
Susannah's responsibilities include direct participation in the standard-setting process as
a project manager focused on studying topics on the GASB technical agenda,
researching practical implementation issues, contributing to the drafting of standards, and
following up on implementation complexities post -issuance. While she is a Fellow, she
works full time for GASB. This partnership allows for a conduit of communication between
our clients and GASB staff.
Internal control review
We understand that the Village is looking for a firm to perform an internal control review.
As part of the scope, we will complete detailed process reviews of all key financial
operating cycles of the Village. These reviews are similar to what occurs during the audit
process, but Include more in-depth analysis. Additionally, all key financial operating
cycles will be reviewed, while only select operating cycles are reviewed during the audit.
The purpose of these reviews will be to 1) complete a thorough risk assessment of the
related process 2) identify the key internal controls within the process that mitigate these
risks, 3) report on gaps in controls which leave unmitigated risks, and 4) offer process
improvement suggestions to recommend controls that can be put in place to correct
design and effectiveness issues and improve efficiency. The significant processing cycles
we recommend reviewing include the following'
> Accounts Payable
> Payroll
> Tax and Intergovernmental Receipt Collection including TIFs
> Utility Operations including Billing
> Cash Receipts including Collections Processing
> Monthly Accounting Close and Reporting
Village of Oak Brook
Page � 9
Firm Qualifications
Note that each of these transaction cycles would be looked at in detail at the department
and component unit level. This would include:
> Sports Core
> Finance
> Human Resources
> Police
> Fire
> EMS
> Public Works
> Library
Our internal control reviews also incorporate information technology systems within the
walkthrough with a focus on the general ledger system and other processing systems
that interface with it.
At the conclusion of our review, we will review a detailed draft of the documentation for
each area with management to allow for corrections and updates. At the end of the
review, the documentation Is given to management in a technologically -friendly platform
(Microsoft Word) that allows the Village to own a tool that can be used dynamically as
processes change. Once a final report Is agreed-upon by management, we would be
happy to present the report to the Village Board. The scope of our review, analysis and
reporting can be easily customized from the plan noted here should you desire.
We have prepared a fee estimate for the Village based on the needs and objectives you
have shared with us and our experience conducting similar engagements with clients in
the state and local government industry. Our estimate allows for thorough and insightful
advice and services from experienced professionals.
Village of Oak Brook Page 110
Firm Qualifications
Comprehensive services provided by our governmental
staff
Baker Tilly strives to become your most Valued Advisor by providing a complete range of
services to help you meet your financial goals. When you have needs that arise beyond
the audit our resources will allow us to effectively deal with future needs as they arise.
We can see the big picture, and we will work with you to enhance and strengthen your
processes over the long term.
In today's challenging fiscal environment, government organizations face increasing
service expectations as available resources are constrained. State and local government
specialists at Baker Tilly provide a range of accounting and advisory services to assist
you with uncovering new opportunities to improve your overall fiscal condition. Our
consulting professionals can offer solutions and leverage your scarce resources,
transforming your organization's strategic priorities into sustainable outcomes. Our
Seasoned consultants can provide you with the following services:
> Marketanalysis&
> tlserfees
> Fun cticnal analysis
> Feasibility studies
> Feasibility
assessment
> Strategy
formulation&
financial feasibility
> Im actfees
P
> Lean government
> Cost savings
> Fiscal
implementation
> Economic&fiscal
> New uiility
> Process
quantification
impact analysis
> organization&
impactstudies
districts
reengineering
> optimal operational
> Transition plan
staffing studies
> Incentivestructuie
> Performance
&staffing
development
development
> Governance
&negotiation
measurement (
> Vendor
enhancement
— Tax Increment
> Governance
strucctureture design
ideniifcation
management
> Risk mana g
Financing
&selection
— New Markets
> cosisharing
arrangements
management
Tax Credits
> Contract
— Special taxing
negotiations
districts
> Contract
> Affordable
performance
housingfinance
management
metrics
> Renewable
en erg y finance
Village of Oak Brook Page I I I
�j
=«y
Firm Qualifications
Single audit experience
Since the passage of the Single Audit Act of 1984, Baker Tilly
has recognized the importance of becoming specialists in this
highly complex area. Our form currently perforins more
ranking
than Soo OMB Circular A-133 audits each year,
our firm in the top three, nationally, based on number of
J1
audits.
In order to continuously stay on top of the changing
Baker Tilly performs more than 500
OMB Circular A-133 audits each year,
requirements, our firm serves on various AICPA committees
studying financial and single audit issues. We have been
ranking in the top three, nationally
selected as speakers for nationally sponsored training
based on number of audits.
courses, and we actively participate in industry events.
Page 1 12
Village of Oak Brook
Firm Qualifications
a. Ivj
We perform more than 500 single audits each year. Below is a list of 'ten of these clients:
> City of Chicago
> Lake County
> McHenry County
> McLean County
> Peoria County
> Will County
> City of Moline
> City of Urbana
> Village of Park Forest
> Village of Lemont
Village of Oak Brook Page 1 13
Specially selected for the Village
From our discussions with you, we learned that Village wants to work with professionals
who are industry specialists as well as seasoned business advisors, who understand
your needs, who are proactive and creative in identifying issues, and who are flexible in
providing solutions. You desire Valued Advisors who work side by side with you to ensure
you receive the most responsive service possible.
Each member of your engagement team is deeply committed to providing Village with
Exceptional Client Service.
Joe nightcap, CPA Role: Engagement partner
Partner Ensure audit is completed according to plans in the
proposal, timelines and quality standards are met,
and client expectations are exceeded.
Jason Coyle, CPA Role: Concurring partner
Partner Serve as the Concurring Partner for your
engagement. In this advisory role, Jason will help
ensure that quality, integrity, and satisfaction are
maintained at all times during the engagement.
Pat King, CPA Role: Manager
Manager Serve as primary client contact, oversee all aspects
AV of the audit and the internal control review,
including audit planning, fieldwork, and reporting.
Nick Cavaliere, CPA, Role: Advisory Specialist
CFE
SeniorlV]anager Nick will be available to the audit team and the
Village during the audit and the internal control
review on an as needed basis. He is a certified
fraud examiner with experience performing forensic
review services and internal control assessments.
S,d
Because the Village engagement team members specialize in the governmental industry,
they are already familiar with many of the challenges and opportunities of governments.
As a result, they are better equipped to address the unique issues you face.
J
r�
Team Qualifications
In addition, their success and experience working with public sector clients enable them
to apply strategies and techniques that have been successful with similar entities.
See the Appendix for resumes of your engagement team members -
Staff continuity
Baker Tilly is aware of our clients' expectation for a stable project team. As a firm, we
strive to maximize employee retention by providing a quality work environment. As a
result, our firm and its offices have been consistently recognized by our industry peers
and local communities as great places to work. Our workplace initiatives are evidenced
by the many awards and rankings our offices receive, including: `Y,�pubic
':Ji 'Accounting
> Baker Tilly ranked as one of the Top 25 Accounting Firms on 4*
Inside Public Accounting's top 100 firms list in 2013 and 2014
> Ranked twelfth on Accounting Today's "Top 100 Firms" list (2015) N 10 0
FRMS
> Placed ninth on the 2015 "Vault Accounting 50" list of best firms to
work for, Baker Tilly has been on the list for five years in a row
> Workplace Dynamics named Baker Tilly one of the "National Top
150 Workplaces" in 2013
To 100 FERMIS
These awards and rankings speak to the respect with which - --- —
employees and clients are treated by Baker Tilly and to the quality of our services, both of
which foster growth and success and team continuity. We keep turnover low and
engagement teams intact by striving to be an employer of choice for talented, committed
individuals.
We attract some of the best and brightest professionals from top colleges and
universities, industry, and national accounting firms because of our unique corporate
culture. They come to Baker Tilly to work in an environment that emphasizes the
importance of relationships and a valued advisor approach.
Our high level of continuity translates into people who really understand the intricacies of
your organization, meaning they are in a position to offer meaningful opinions, advice,
and insight to the County. Our low turnover rate also means we can commit within reason
to the continuity of the team members throughout the engagement.
If an employee on your engagement team leaves Baker Tilly, the size of our practice will
allow us to quickly deploy a replacement with a comparable level of industry and service
line experience, thereby minimizing any disruption to your engagement. We understand
the County retains the right to approve or reject personnel replacements of engagement
partners, managers, other supervisory staff, and specialists.
Pana 1 15
_^ Teary Qualifications
Continuing professional education (CPE) training
In order to ensure that our staff meets your expectations, we require all professional staff
to obtain a minimum of 120 continuing professional education credits (CPE) every three
years, with no fewer than 20 credits in any given year, allowing them to keep current with
industry regulations. We also follow the professional education requirements of
Government Auditing Standards which require 24 governmental CPE credits every two
years.
In addition, we provide training to governmental associations such as the Illinois
Government Finance Officers Association, the AICPA, and other organizations on various
topics, including new accounting standards and internal controls.
Some of our clients have used Baker Tilly to provide customized, local training to their
staff. In addition, we have hosted seminars on governmental topics for more than 30
years.
All governmental audit staff attends courses in the accounting and auditing areas dealing
with public sector topics, including the single audit area.
Some of the recent courses attended include:
> Accounting for Governmental Units Under GASB
> Government Accounting and Auditing Update
> Risk Assessment Standards Program
> Satisfying Compliance Auditing Requirements of Financial Assistance Programs
> National Government Accounting Conference
> Advanced Governmental Accounting
> Audits of State and Local Governmental Units
> Yellow Book: Government Auditing Standards
> In-house course — How to perform the single audit
> In-house course —Analytical review and audit sampling for governmental units
> In-house course — Governmental accounting and auditing update
> Issues under formation of Regional Transmission Organizations
> Utility Board Governance
> Advanced Utility Accounting
> Financial Statement Analysis
> Utility Benchmarking
0-,..0 1 1R
Team Qualifications
GFOA certificate of achievement program
We understand the Village issues a Comprehensive Annual Financial Report (CAFR).
This will require a firm that excels in receiving the certificate of achievement from the
GFOA, and we are that firm, providing you with an impeccable record of certificate
submissions for our clients. We continue to be heavily involved with the GFOA award for
excellence in financial reporting by volunteering staff time to serve as report reviewers for
the GFOA. In addition to the partners and manager assigned to your engagement, the
final technical review of the Village's CAFR will be performed by a Baker Tilly GFOA
reviewer as well.
Below is a list of our current GFOA reviewers:
BakerTilly's GFOA reviewers
Heather Acker, Partner
John Andres, Partner
Jason Coyle, Partner
Jodi Dobson, Partner
Carla Gogin, Partner
Vicki Hellenbrand, Partner
John Knepel, Partner
Joseph Lightcap, Partner
Jim Murray, Partner
Thomas Scheidegger, Partner
Wendt Unger, Partner
Amanda Blomberg, Senior Manager
Steve Henke, Senior Manager
Cheryl Puhl, Senior Manager
John Rader, Senior Manager
Kim Shult, Senior Manager
Paul Frantz, Manager
Michael Malatt, Manager
Team Qualifications
Industry involvement
To help you respond to and prepare for change, we are actively involved in local and
national associations, keeping us on the leading edge of what is happening in our
industry. Our memberships in the following organizations and our involvement as authors,
speakers, trainers, and promoters of governmental accounting and auditing help us
actively assist you with the implementation of new regulations or the adoption of new
standards. Because of this active involvement, we are able to provide the Village with
timely and relevant industry information. It also allows us to be a sound resource to the
Village as complex or routine accounting and auditing issues arise.
Governmental
To promote the importance of quality governmental audits, serve as a
to member firms, provide members with online tools for sharing
Audit Quality
Center (GAQC)
resource
ideas, and recognize CPA firms that demonstrate a commitment to
the first active members of the
governmental audit quality. We were one of
on the Executive Committee and
Center and have been represented
Technical Issues
Ex art Panel.
TIC is a committee of CPA practitioner volunteers working to represent the
setting process. One
Committee (TIC)
views of local firms and their clients in the standards
to this committee to provide insight
of our partners was recently appointed
to the activities of the Governmental Accounting Standards Board
related
(GASB) and its potential effect on mid-size governments. This committee
with assistance as well including
also provides standard setters practical
field testing portions of proposed guidance, providing practical examples of
GAQC Executive
potential implantation difficulties and serving on standard setting task
state and Local
This committee serves the needs of the AICPA members regaraing
and attest matters. The expert
Government
Expert Panel
financial and business reporting and audit
panel protects the public interest by bringing together knowledgeable
to deliberate and come to
parties in the state and local government industry
agreement on key state and local government issues.
The group meets semi-annually with the Governmental Accounting
to GASB from a practitioner
Standards Board (GASB) and provides input
This committee is also responsible for publishing the
and user perspective.
AICPA's State and Local Government and Government Auditing Standards
and Circular A-133 Audit Guides and related Audit Risk Alerts. We have
been represented on this expert panel since 2005.
develops the policies of the GAQC,
GAQC Executive
This committee governs the GAQC,
oversees its activities. The committee meets twice a year, held in
Committee
and
conjunction with the Single Audit Roundtable (SART), which includes
federal inspectors general, federal agencies, and
CPA firms.
IGFOA Techmcai , i ne i ecni 11�d� ........... ---- - —
Accounting comments on activities and rulings of the Governmental Accounting
Review Standards Board (GASB), represent the IGFOA membership by providing
Committee testimony to the GASB on proposed standards, and educate the IGFOA
membership on those standards. This committee often issues FAQs or
White Papers on current or upcoming GASB standards, including GASB
54, GASB 61 and GASB 67, to assist IGFOA membership in implementing
—h
Tears Qualifications
ICPAS
This committee conducts annual reviews of audit opinions issued by public
financial statements for Illinois units of
Government
accountants and related annual
local government, collect information on common errors, and distribute
Report Review
Committee
such information to the membership. The committee seeks to help
Governmental financial statements by
statement preparers to improve
encouraging compliance with accounting principles generally accepted in
the US (GAAP) and adherence to auditing standards generally accepted in
the US (GARS) or generally accepted Governmental auditing standards
(GAGAS) by auditors. The reviews are intended to be educational for both
reviewers and practitioners whose opinions are being reviewed.
ICPAS
This committee seeks to encourage excellence in the performance of
for auditing of federal, state
Governmental
professional services related to accounting and
Accounting
and local governmental units and agencies.
Executive
Committee
The ASB is the AIC. " — senior committee far auditing, attestation, and
Auditing
Standards Board
quality control applicable to the performance and issuance of audit and
(ASB)
attestation reports for non -issuers
A position of leadership
Baker Tilly professionals are among the most influential in the accounting and advisory
industry, with Baker Tilly thought leaders directly involved with issues shaping our
industry. In October 2015, Baker Tilly CEO Tim Christen continues Baker Tilly's influence
and leadership as chairman of the American Institute of CPAs (AICPA). Tim has also
served on the Board of Directors of the AICPA and as chair of the organization's Major
Firms Group. He is a former member of the AICPA National Council (governing body of
the AICPA).
Kim Tredinnick, partner and member of the firm's risk management group, serves on the
AICPA's Auditing Standards Board, the National Association of State Boards of
Accountancy, and the AICPA's Technical Standards Sub -Committee. In addition, Jeff
Gendreau, partner and member of the firm's board of partners, serves on the AICPA's
National Peer Review Committee. Several other Baker Tilly partners have served in
various positions with the AICPA, as well.
I an
i J Team Qualifications
�F
= Complimentary training webinars
New standards are now being issued on a regular basis by standard-setting bodies. To
better prepare our clients for the changes resulting from these standards and to share
best practices, we offer monthly client -training webinars. These webinars are free to our
clients and qualify for CPE.
Recently, we hosted other webinars on:
> Cybersecurity: Its not just for businesses
> Financial Policies 101
> OMB Uniform Grant Guidance: Developing a successful implementation plan
> Managing your ERP implementation project
> Health care reform: Where are we now? An employer's guide to 2014-2016
> Preventing procurement fraud in the public sector
> Government combinations and disposals of operations: GASB 69 and
practical applications
> Effective IT budgeting
> OMB Grant Reform: An overview of the recent changes and tips to help ensure your
compliance
> GASB 67 and 68: Accounting and reporting for pensions
> Understanding your financial statements
> Succession planning: Why it is still relevant
> How human resource management can impact your bottom line
> Auditing 101: Everything you need to know about the annual audit
> Enhancing collection of your revenues
All webinars are archived and can be viewed at any time on our website, bakertilly.com.
Pana 190
client references
We always are glad to provide references because we think it is important for you to talk
with those organizations we serve. We encourage you to connect with the clients listed
below to learn more about the value of their relationship with Baker Tilly. Each may have
a different perspective that you may find valuable as you think about your needs.
ICIMOUM
Partner: Joe Lightcap
Contact: Ms. Stephanie Hannon, Finance Director
Phone: 847 398 6070
Scope of work: Financial and TIF compliance audits
Partner: Joe Lightcap
Contact: Ms. Melody Salerno, Comptroller
Phone: 708 579 6700
Scope of work: Financial and TIF compliance audits
Partner: Jason Coyle
Contact: Ms. Judy Buttny, Finance Director
Phone: 630 434 5500
Scope of work: Financial and TIF compliance audits
"The auditors are great to work with and always on top of their game!"
- Finance Director, Illinois village client
rte__._ , nA
i_ Similar Engagemets with Other Governmental Entities
Ilinois client list
We provide services to more than 200 municipal clients nationwide. This list includes
some of our Midwest public sector clients from Illinois, but we would be happy to provide
a comprehensive list of our clients, nationally, if desired. We are also happy to provide
contact information for any client on request.
The following list includes both audit and consulting clients in Illinois.
Illinois city clients
Chicago
Evanston
Galesburg
Highland Park
Moline
Prospect Heights
Urbana
Waukegan
Wheaton
Illinois county clients
Kane
Lake
McHenry
McLean
Peoria
Will
Illinois township clients
Evanston
Lyons
Illinois libraries clients
Bedford Park
Downers Grove
Evanston
Hodgkins
McCook
Park Forest
Schaumburg Township
Waukegan
Westmont
Illinois utility clients
Batavia Water & Sewer
DuPage County Water and Sewerage System
Glenbard Wastewater Authority
Illinois utility clients cont'd
Illinois Municipal Electric Agency
Marshall Utilities
Metropolitan Water Reclamation
District of Greater Chicago
Naperville Utilities
Oglesby Utilities
Illinois village clients
Buffalo Grove
Broadview
Chicago Ridge
Downers Grove
Hodgkins
Gurnee
Indian Head Park
Lemont
Long Grove
Maywood
McCook
Orland Park
Park Forest
Skokie
Westmont
Other entities
Bedford Park Park District
DuPage County Health Department
Forest Preserve District of Cook County
Hodgkins Park District
LaGrange Highlands Sanitary District
Pleasantview Fire Protection District
Regional Transportation Authority
i--- Similar Engagemets with Other Governmental Entities
Government Finance Officers Association certificate of
achievement recipients
We are also proud to say that more than 20 of our current Illinois clients receive this
award annually. The following are Illinois clients that have received the GFOA certificate
of achievement during the years that Baker Tilly conducted their audit. We would be
happy to provide a list of all GFOA recipients upon request.
Kane County'
City of Evanston
Village of Buffalo Grove
Lake County
City of Galesburg `
Village of Downers Grove
McLean County
City of Highland Park
Village of Lemont
McHenry County
City of Moline
Village of Orland Park
Will County
City of Prospect Heights
Village of Park Forest
Peoria County
City of Urbana'
Village of Skokie
City of Waukegan
City of Wheaton
Forest Preserve District of
Cook County
Greater Rockford
Airport Authority
Metropolitan Water
Reclamation District of
Greater Chicago
`Auditing began for this organization in its most recent fiscal year. The organization has
received the GFOA Certificate of Achievement for several consecutive years and it is
anticipated that their most recent CAFR will receive this award as well.
our approach to the audit
We understand that the Village is requesting audit proposals for the fiscal years ending
December 31, 2015 through December 31, 2017, with an option for a fourth and fifth year
ending December 31, 2018 and 2019.
Our audit will be made in accordance with Generally Accepted Auditing Standards
(GARS) as promulgated by the American Institute of Certified Public Accountants
(A)CPA); the AICPA audit guide, Audits of State and Local Governmental Units;
Government Auditing Standards issued by the US General Accounting Office; OMB
Circular A-133 Audits of States, Local Governments, and Non -Profit Organizations.
The primary purpose of the audit is to express an opinion on the financial statements of
the entity subject to audit. Such an audit is subject to the inherent risk that errors or
irregularities may not be detected. If conditions are discovered that lead to the belief that
material errors, defalcations, or other irregularities may exist, or if any other
circumstances are encountered that require extended services, Baker Tilly will promptly
advise an appropriate level of management.
The following reports will be prepared and presented at the completion of the audits:
1. Twenty-five (25) copies of the Village's Comprehensive Annual Financial Report
2. Twenty (20) copies of the Management Letter
3. Twelve (12) copies of the report on the Village's Tax Increment Financing District
In the required reports on internal control, we will communicate any internal control
deficiencies found during the audit. A control deficiency exists when the design or
operation of a control does not allow management or employees, in the normal course of
performing their assigned functions, to prevent or detect and correct misstatements on a
timely basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of
the entity's financial statements will not be prevented, or detected, and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
❑.,,,o I 9d
11
Audit Approach
Audit plan methodology
We strive to provide high-quality audit, accounting, and advisory services to our clients.
Using integrity, objectivity, competence, and due care, our personnel will conduct your
engagement professionally and on time.
Our objectives
> Provide exceptional service from the same team of individuals on a year-to-year
basis
Construct audit programs to streamline year-end
We will be flexible
>
procedures and improve value
in working with you,
> Issue audited financial statements within a timeframe that
meets or exceeds management's expectations
leveraging your
> Utilize Baker Tilly resources to present a meaningful
management letter
internal resources
> Inform you of current and anticipated changes in
professional standards that could affect you
wherever possible.
> Provide services on a timely and cost effective basis
This approach will
Our procedures will include tests of documentary evidence
recorded in the accounts and direct
help manage your
supporting the transactions
confirmations as deemed necessary. We will request written
and
representations from your legal counsel as part of the
COsis
engagement. At the conclusion of our audit, we will also request
certain written representations from management about the
streamline
financial statements and related matters.
communication.
When we perform an audit, we stress understanding our client's
operations and the unique factors that differentiate the organization. We develop a
thorough understanding of your activities, operating systems, personnel, and special
needs, using this information to plan a complete but efficient audit. Areas that require
more attention are identified, and unnecessary or redundant procedures are eliminated.
We understand the needs of governments, and our audit philosophy considers the
special issues you face. Although our audit objective is to provide an independent opinion
on the Village's financial statements, we will be flexible in working with you, leveraging
your internal resources wherever possible. This approach will help manage your costs
and streamline communication.
" Audit Approach
Audit approach
our audits are divided into four main phases: planning, interim audit work, year-end audit
work, and reporting. A description of each of the areas follows.
Audit Phases
Planning:
This phase will commence with a joint meeting or phone conference
between Baker Tilly and the Village. This meeting Is important to ensure
a coordinated audit and will cover our preliminary plan for conducting the
audit to meet the Village's timing requirements and reporting issues.
Interim audit work:
During this phase, we will document your systems and perform tests of
controls to evaluate their effectiveness. We will also update certain
documents for our permanent files. Confirmation requests will be
selected, and we will work with the Village's personnel to determine the
timing of the final audit fieldwork. We will also perform the risk
assessments required to determine our audit approach and needed audit
procedures. At the conclusion of interim work, we will provide the Village
with a list of items needed for the year-end work and meet with
management to provide a status update.
Year-end audit work:
This phase will occur when the Village's accounting personnel has
prepared a trial balance of its year-end general ledger accounts and
completed the working -papers agreed upon during planning. This phase
includes substantive audit procedures that involve obtaining or
examining evidence to verify the propriety of such balances. Throughout
audit fieldwork, we will meet with members of the management team to
discuss the results of the audit.
Reporting:
The final phase involves the independent partner quality control review of
your financial statements and completion of the report on internal control
and other required reports. We will conclude with presenting findings to
the Village Board. We will adhere to the report timelines you have
outlined in your request for proposals as well as the printing and copying
requirements stated.
rwv_�rry
Audit Approach
Baker Tilly understands that your audit process should be a year-round effort. To best
serve you, we will use a team approach that puts our technical and industry specialists at
the disposal of the people who know your organization best—you and your employees.
Knowing the Village's industry, we understand the critical details embedded in your
financial statements and will focus considerable time and energy on these risk areas,
while paying additional attention to items of the most concern to you. We employ a
business integration approach that incorporates strategy, organization, processes,
performance measures, incentives, people, and technology.
Our techniques include:
> Identifying key risk areas, allowing us to properly concentrate our efforts
> Designing predictive tests that define our financial expectations prior to
starting fieldwork
> Leveraging Village -specific knowledge to create tests for your operations
> Deploying an experienced team to maximize our knowledge of the Village
You can expect to receive a quality financial audit without unnecessary procedures or
working papers. Before completing internal planning, we will discuss our approach with
you and modify our plans, as appropriate.
Steps in the Audit Cycle
=Reviewyour
.>Consider
of
cycles'>Fin
> validation
's > Opinions
ancial
documents
in herentrisk
transactions
+>Documentand
procedures
>Analytical
; statements and
Interview
personnel
Consider
control risk
i test controls
review
notes review
i other reports
Rely on
=Consider
for reliance
>con firmations
Single au
kn owiedge of
f detection risk
the in du stry
i =Considerfraud
risk
Audit Approach
Significant audit dates
December March
Establishing engagement objectives
Kick-olf meeting with management
Confirm audit scope, objectives, and approach
Planning meetings
0
.-
Develop understanding of significant processes and internal X
controls
Identify applicable key processes for assessment related to
the significant risks identified during the risk assessment
Review the accounting and reporting of financial transactions
and examine the means used to identify, measure, classify,
and report on such information, while determining if any area
has potential risks of financial mismanagement
Review information technology system to determine if any
area has potential risk of financial mismanagement
Review current documentation, including current laws,
guidelines, policies, and procedures presented by the Village
Develop detailed audit plan based upon identified risks and
scope of engagement
Plan internal control testing and review test plan with the
Village
Document results in the risk and control matrix and identify
deficiencies
Document and review findings, if any, with the Village
Obtain data and perform detail testing
Complete all necessary analysis
Complete all necessary single audit procedures
U
U
X
17
X
Audit Approach
Provide the Village with draft financial statements
X
Provide the Village with draft report on internal control and X
management letter, if necessary
X
Engagement debrief meeting
X
Finalize financial statements and letters
X
Issue reports
X
Meet with the Village
We are flexible with our fieldwork schedules and can make adjustments to fit the Village's
needs.
D�„n 199
Audit Approach
Segmentation of the engagement
We have a proven audit approach that is tailored to the Village and includes ten work
segments of the audit. Those segments, along with the anticipated audit procedures for
each segment, have been taken one step further and customized for the Village and are
discussed below.
1. Engagement planning and administration
> Prepare client information forms, obtain signed engagement letters, and complete
company independence procedures
> Review previous audit reports and internal control reports
> Prepare memorandum regarding overall Village operations for permanent file records
> Complete staffing and scheduling summary
> Hold planning conference with engagement partner and in -charge auditors
> Hold planning and progress conferences with the Village as needed
> Obtain all documents and information required for permanent file
> Read minutes of the Village Board meetings
> Perform various testing of compliance with laws and regulations
> Develop and approve audit programs
> Accumulate points to be included in management letter and draft letter
> Review working papers for completeness
> Undergo partner -level working paper reviews
> Hold exit conference with key Village personnel
> Make presentation to the Village Board
2. Risk assessment and internal controls
> Perform entity -wide risk assessment procedures
> Conduct SAS 99 interviews
> Determine major transaction cycles
> Perform evaluations of internal controls over major transaction cycles
> Complete information technology risk assessment
> Test internal controls as applicable
> Determine reliance on internal controls and resulting substantive audit procedures
3. Cash and investments
> Review ledger account entries and compare cash account balances
> Confirm year-end cash and investment balances with depositories
> Obtain bank reconciliations and substantiate reconciling items
> Substantiate cash cut-offs and interbank transfers
> Test investment transactions and interest earned
> Test market values of applicable investments
> Audit financial statement disclosures
4. Revenue
> Compare revenues to prior -year actual, current budget, or other expectations
> Analyze accounts with significant variations
> Confirm or otherwise validate accounts receivable and taxes receivable
> Confirm and reconcile state aids
> Reconcile other revenues to claims and invoices filed
> perform a search for unrecorded receivables
> Review functional classifications of revenues for government -wide
financial statements
> Test capital contributions
> Analyze allowances for uncollectibles
5, Expenditures
> Compare expenditures to prior years, budgeted amounts, or other expectations
> Analyze accounts with significant variations
> Review accounts payable listings, determine proper cut-offs, and test for
unrecorded liabilities
> Validate prepaid items
> Verify vested compensated absence liabilities
> Testinsurance-related accruals orIBNRs
> Determine appropriateness of other liability accounts, including accrued payrolls and
related withholdings, retainages, and other liabilities
> Test pension information and disclosures
> Test other post -employment liabilities
6. Capital Assets
> Obtain capitalization policy for capital assets and infrastructure
> Obtain summary schedules of general capital assets and infrastructure, including
additions, retirements, and accumulated depreciation
> Test general capital assets and infrastructure additions and deletions
> Test general capital assets and infrastructure depreciation/amortization calculations
7. inventories
> Observe physical inventories, if material
> Test pricing, quantities, and extensions of final inventories
S. Financing/equity
> Verify bond and note balances owed
> Obtain information an new issues, if any
> Trace transactions to general ledger
> Re -compute interest expense
> Determine nature and appropriateness of net position and fund balance categories
O'
Audit Approach
9. Financial reporting
> Ascertain that all items of audit significance contained in the minutes have been
considered and cross-referenced to the working papers
> Obtain a working trial balance
> Propose adjusting entries and obtain adjusted trial balance
> Draft the financial statements
w to date of completion of fieldwork
> Perform subsequent events revie
> Obtain management and attorney representation letters
> Finalize required reports
10. Single Audit (if required)
> Obtain schedule of federal awards and review for accuracy and completeness
> Obtain summary schedule of prior audit findings
> Determine major federal grant programs
> Review compliance requirements for major federal grants
> Test the Village's internal control over compliance requirements that could have a
direct and material effect on major programs
> Test compliance with laws and regulations governing the Village's major federal
grants
> Draft required Single Audit reports
> Draft schedule of findings and questioned costs
> Obtain responses to findings and the corrective action plan from the Village, if
needed
> Prepare and sign Data Collection Form and file electronically after Village review
Paoe 1 32
i%
Audit Approach
sample sizes and statistical sampling
We may plan to use audit sampling throughout phases of our audit because we believe
this allows us to perform an audit that is more cost beneficial to our clients. We have
identified the following audit sampling tests that may be used on the Village's audit. They
include:
> Substantive tests of details of balance sheet accounts
> Tests of controls
> Tests of compliance with laws and regulations
After we have reviewed and evaluated the Village's internal controls, we will make
decisions on the internal control procedures we Intend to test. We will set parameters
regarding the expected error rate, audit risk, and tolerable error rate in order to determine
the sample size we will generate. We may perform these procedures in the following
areas:
> Cash receipts
> Cash disbursements
> Payroll
> Journal entries
We also plan to use audit sampling to perform substantive tests of certain balance sheet
accounts, including accounts receivable and recorded vouchers payable. our firm has
customized statistical sampling tools that are In full compliance with all professional
standards.
We expect to use the following sample ranges; however, these may increase or decrease
based on the results of our understanding of the Village's internal controls:
25-60 documents
25-60 documents
Sample ranges
Tests of
controls
25-60 documents
25-60 documents
Audit Approach
Use of electronic data processing (EDP) software
Our approach to computer auditing encompasses two distinct activities: the system
review and computer-assisted audit procedures.
The first activity represents the basis for our evaluation of internal controls in a computer
environment. Our understanding of your EDP organization and system can assist
management in evaluating the effectiveness and efficiency of program operations. Our
approach to computer auditing enables our auditors to identify information regarding the
strengths and weaknesses of the various systems, which will be used to design our audit
program.
Audit work activities associated with the system review include:
GATHERING EDP
INFO:
01=11i 17 1'ii0i� 9iTa Si_q; lel;'
tfi, rlljJill,g n„fGr:fy;ll dli:.'.^,
C)pcl a`o., sysi-rP, and
nne.
appiicaiiun systen;
Dote= I,�.,tien
. - r�iie.^,lents
f
E_ P p :rug ;ah,rties
�HfllTIEYi�1G A!`IU 1271 IDUITIFY]MG, AfdD
EV,ALUATIidG GEf 1ERPL
rF\ EVALUATIhIG INDINUt IAL
0 EDP CONTROL:� CflNTROLION --
„ yl
'Xis C. ani. CGiS!!t ieflC2�:�'li,-
n anizatlo;?alan�.:.p- All
Stall Ctdrds
orocadur>>
i:ontr:!s uve: s<'nedulin,,
processln� and a�CESS
?roce�h-Irrstor<=gtda..
systemsrieve IC'f, ;..?t0:nd
Ci 2!ii!J.@a Cijir!i;e rhe ie:(i B\`! C;
EN Or°nl?L [IGIi, Ope12LI0ii5,
anr! System'
> Tlaraa Cti01'1 i0b`.l till'OU"h
Lh- a�piica.lrn;;istem "rum
6utiai en;r/ :;.
Alnllild rlZa li iJn ani
> xcxmtin controls that
paral!-1 the t-ansactipn iir,`•:
E 1=latinn-ii the ldentiiielt
controls er.vironMent to
rmir'.edle to JnCara
p'0.eGUI eS
The second activity included in our computer audit approach permits us to use the
information gathered during the system review to enhance our audit procedures.
Baker Tilly minimizes fees by conducting a virtually paperless audit, using proven
processes and CaseWare, a comprehensive auditing software solution. In addition, we
use IDEA, software that creates compatibility between your data and our systems in
order to effectively convert and compile information. This investment in technology
supports real-time communication—both internally at Baker Tilly and with the
Village—and provides a seamless trail from initial planning through the final financial
statement issuance.
1
Audit Approach
\Ale also use accounting software such as CaseWare to assist the auditor in determining
the extent of detailed account analysis to perform. By entering data from your budget
reports Into our program, we are able to analyze account relationships, which helps us
concentrate our efforts on accounts that are most relevant to the audit.
Baker Tilly is alert to the part technology plays in almost every organizational operation,
and we provide a full range of technology risk services. You can rely on your engagement
team to combine their industry experience with technology expertise to deliver
customized solutions tailored to your specific needs. Our dedicated team of technology
professionals can provide high-level insights and solutions. These specialists hold top
credentials, including Certified Public Accountant, Certified Internal Auditor, Certified
Information Systems Auditor, Certified Information Systems Security Professional,
Certified Financial Systems Auditor, and Certified Fraud Examiner. We can work with you
to ensure your organization derives the appropriate level of value from its technology
investments and effectively protects information assets from threats.
Analytical procedures
Analytical procedures may range from simple comparisons to complex models involving
many relationships and elements of data. Generally accepted auditing standards require
the use of analytical procedures in all audits of financial statements.
Our analytical procedures are done in three parts—planning, preliminary, and final.
Planning analytical review is performed during our preliminary fieldwork to help us plan
the audit and determine where we might need to focus additional attention. Preliminary
procedures are performed using the Village's trial balance and budget report prior to audit
entries. In -charge auditors review the current -year information and compare it to prior -
year actual amounts, the current budget, and other expected results. These procedures
are performed on the balance sheet and Income statement.
Final analytical review takes place after all audit entries are posted. The partner -in -
charge or manager reviews the financial statements, looking for variances to our
expectations—figures that exceed a predetermined threshold level—both from a
percentage and from a dollar amount perspective. Accounts that exceed the variance
threshold are highlighted for further investigation. This investigation includes reviewing
detail transactions, vouching a sample of transactions, discussions with management,
and validation techniques. Explanations of variances are documented in our file, with the
results used to determine the extent of any additional audit testing or financial statement
disclosures.
Understanding the Village's internal controls
Our audit process stresses the importance of evaluating internal controls, especially
under the risk assessment standards. Years ago, auditors understood the internal
controls only to design audit procedures. Under the audit risk assessment standards, we
perform a thorough evaluation of the effectiveness of these controls in order to perform
risk assessments and design a risk-based audit program.
During our preliminary work, we will update our understanding of your internal control,
and evaluate and test internal controls over the significant accounting and reporting
systems of the Village.
Audit Approach
These evaluations will enable us to determine how much reliance we can place upon the
systems for audit purposes and the amount of systems testing and account verification
work that may be required.
In addition, all significant suggestions, questions, or other comments resulting from these
evaluations will be discussed with appropriate personnel.
After we have evaluated the internal controls, we will test the flow of data through the
systems to determine:
> Whether the data actually follows the prescribed procedures and controls within the
system
> The degree of clerical accuracy achieved in recording and summarizing the data
Determining laws and regulations subject to audit
test work
Should the Village be required to have a Single Audit, the audit scope regarding
compliance with laws and regulations is substantially broader than a standard audit
conducted according to generally accepted auditing standards (GRAS). We have
developed our own approach to satisfy both the Single Audit and GAAS requirements.
compliance testing approach
The Single Audit Act requires we test for compliance with laws and regulations that could
have a material effect on the allowability of program expenditures. Therefore, we will test
financial transactions as well as specific program requirements.
Once we have determined which federal programs are major, we will develop the
approach to test a specific program. We know certain programs incur costs that are
administrative in nature, consisting primarily of salaries, wages, and fringe benefits. For
these programs, we will randomly select a representative sample of payroll costs to test.
Our sample will be derived from the personnel assigned to that particular program.
Other programs, however, do not have substantial personnel costs. Those programs
involve the purchasing of goods or services from outside sources, including vendors and
not-for-profit agencies. Our approach to these types of programs would be to select a
representative sample of charges to that program from the Village's transaction history
reports.
For programs that involve both significant personnel costs and costs from outside
sources, our approach would be a combination of the procedures identified above.
Since we are also testing for compliance with administrative laws and regulations, we will
be testing representative samples from each major program.
OMB's Compliance Supplement identifies fourteen significant areas that may apply to
each federal award. We rely on Practitioners Publishing Company for general work
program guidance and developed our own work programs tailored for the Village.
Parva I �M)
v
''. Audit Approach
Audit conducted according to GAAS requirements
Our dedicated team is immersed in the industry, with substantial knowledge of various
laws and regulations dealing with government accounting, budgeting, financing, and
reporting. With this knowledge, we developed our own audit work program, which we will
use on the audit. The work program covers such areas as:
> Authorization of depositories and types of allowable investments
> Arbitrage compliance and rebate requirements
> Budgeting procedures and reporting requirements
> Restrictions on expenditures and matching requirements
> Taxing and debit limits
> Compliance with the TIF statute
In addition, we will obtain information from the management of the Village on any other
significant laws and regulations that could materially affect the basic financial statements
in the event of noncompliance.
Audit conducted according to Single Audit requirements and GAO standards
These standards require we perform additional tests in order to provide reasonable
assurance that federal award programs are in compliance with laws and regulations
governing those programs. We will test all major federal programs as well as any non -
major program transactions selected for other audit purposes.
We will use the following documents for guidance In determining the laws and regulations
applicable to the Village's federal award programs:
> The Single Audit Act Amendments of 1996
> GAO Government Auditing Standards
> OMB CircularA-133 Audits of States, Local Governments and Non -Profit
Organizations
> OMB CircularA-133 Compliance Supplement
> OMB Circular A-87 Cost Principles for State and Local Governments
> Code of Federal Regulations
> Catalog of Federal Domestic Assistance
As a practical matter, most of the significant laws and regulations that affect the Village's
Single Audit programs can be found in OMB's Compliance Supplement.
For any major federal program not listed in the Compliance Supplement,
determine the significant compliance requirements by reading the applicable statutes,
grant agreements, and policy manuals. We will also contact federal agencies for technical
assistance, if deemed necessary.
Approach to be taken in drawing audit samples for purposes of tests of
compliance
Our testing of compliance and internal control over compliance will follow the
requirements of the AICPA sampling guidance. Each major program tested during the
single audit will have samples pulled for each of the applicable compliance requirements.
The sample sizes will depend on the number of transactions in the population.
Pane 1 37
Total Not to Exceed Maximum Fee
We have prepared a fee estimate for the Village based on the needs and objectives you
have shared with us and our experience conducting similar audit engagements with
clients in the state and local government industry. Our estimate allows for thorough and
insightful advice and services from experienced professionals without unnecessary add-
ons or start-up charges. We will not bill the Village for routine phone calls or for first-year
start-up or transition time. Please refer to Attachment B — Professional Fees on the next
page.
Our proposed fees includes an estimate for the additional time required to audit the
Village's pension plans under GASB 68.
The proposed fees for the single audit assume the testing of one major program. If
additional testing is required, we will discuss an appropriate fee adjustment with you at
that time.
Our proposed fees are based on the assumption that there will be minimal client initiated
or audit adjusting entries posted to the general ledger once fieldwork commences. Our
fees do not include bookkeeping or accounting assistance for preparation of audit
working papers; however, we work with our clients to minimize additional costs. We are
sensitive to cost control and have always worked diligently to minimize our fees through
adequate planning, detailed client audit or review preparation lists, and other means, all
while maintaining high quality standards.
Fees for any service can vary due to factors such as hourly billing rates, mix of staff, and
actual hours of performance. A low fee is not a bargain if adequate attention is not given
to the client or the service is less than that which the professional should provide.
Hourly Rates
Should Village require additional services beyond the scope of this engagement, we will
be pleased to prepare a new estimate detailing the level of effort and resources required
to complete the work. If a service is outside the scope of our bid, we will let you know and
ask for your approval before we begin our work and/or bill you.
out of Pocket Expenses
We will not bill the Village for routine phone calls or for first-year start-up or transition
time. There will be no out-of-pocket expenses for the Village.
Manner of payment
Progress payments will be made on the basis of hours of work completed during the
course of the engagement and out-of-pocket expenses incurred in accordance with Baker
Tilly's dollar cost bid proposal. Interim billing shall cover a period of not less than a
calendar month. Terms will be net/60 days from receipt of invoice. A finance charge of
1.5% per month will be added to invoices over 30 days past due.
Pane 1 38
Engagement Fees
Attachment B — schedule of Audit & professional Fees
Maximum Fees
Base Audit
T.I.F. Report
(Single Audit
le sari)
(Audit Year)
$130
Supervisors
NfA
All Inclusive Fee for 2015
$29 500
$2.300
$4,000
All Inclusive Fee for 2016
$30390
$2370
$4.120
All Inclusive Fee for 2017
$ 31.300
$ 2.440
$4,240
optional years: 2018
$32,240
$2 510
54,370
$4,500
20'19
$33,210
52,,590
Schedule of Hourly Rates
Personnel
Rate
Partners
$200
Managers
$130
Supervisors
NfA
Seniors
$90
Staff
$75
Other(SpecifY)
N/A
Additional Report on Internal Controls (estimated range)$ 20,000 through
$ 25,000
r,--- i as
,
Engagement Fees
Attachment C — Vendor Questionnaire
FIRM NAME Baker Tilly Virchow Krause, LLP
CONTACT PERSON Joe Lightcap, CPA, Partner
ADDRESS 1301 W. 22nd Street, Suite 400
Oak Brook, IL 60523
PHONE NUMBER 630 645 6215
WHEN ORGANIZED ----
WHERE ORGANIZED Madison, wisconsin
Yes
LICENSED IN ILLINOIS?
NUMBER OF YEARS IN PRACTICE? ga years
HAS THE FIRM EVER REFUSED A CONTRACT? No
If yes, please submit details
HAS THE FIRM EVER DEFAULTED ON A CONTRACT? No
If yes, please submit details
WHERE IS YOUR NEAREST OFFICE TO OAK BROOK? In Oak Brook
HOW MANY PEOPLE ARE EMPLOYED IN THE 30
NEAREST OFFICE TO OAK BROOK?
What you can expect
Our goal is to become your Valued Advisor. To accomplish that, you have to feel your
voice is being heard from the very beginning of the relationship. You have to feel
confident that your needs and objectives are understood and that your best interests are
always our top priorities.
smooth and tailored transition plan we hope to achieve.
Implementing a seamless transition process isntjust someClients who have made the move to
We actively take steps to ensure that it happens.
Baker Tilly tell us about their experience.
Through our client survey program, our clients are asked to rate their experiences with
Baker Tilly in a variety of areas compared to that of their previous firms. Their answers
speak volumes with one common thread: great satisfaction with the decision to work with
Baker Tilly.
The voice of Baker Tilly clients
Our client transition survey found:
Respondents were more satisfied with Baker Tilly versus their previous
the rm,
highlighting specific service areas of satisfaction, including quality
proactive business communication, responsiveness, and value of services in relation
to fees.oint scale
Overall, 97 percent of respondents rated Baker Tilly 4 or 5 on 5-p
indicating a high level of satisfaction when transitioning to Bakerr Tilly from a previous
firm.
Satisfaction with baker Tilly vs, previous firm
ixeaPenaNenea.
Nally of team assigrretlto w1
stanm,nln�N
Amoum of gaacwe eueirzI.
corM,unication
B,gersta.dm a W. iw-sw
M'It, to meet yom
geagaphtflservice we0a
Aanryto meet aeaminee
vawe oleenmec m reiamn m
Z, charger
Deliveries on porrises rtem
tlurin9 tM1e PmPosal Proses
(Ne211 satlsfaclio
�] Baker Tily
® Previous Flrm
i=`s�:riussavnm
=vm ar..a
Nothing is more important to us than the voice of our clients. It is the fabric of our firm—
the foundation upon which we build our client service model. We ask, we listen, and we
use your feedback to continually improve the client experience. That is the "Baker Tilly
difference." Our commitment to you is that your transition will be a positive experience
resulting in a valued working relationship.
Page 41
k
I
Appendix A: Resumes
Joseph M. Lightcap, CPA
Partner
630 645 6215
joe.lightcap@bakertilly.com
Joe Lightcap, Partner with Baker Tilly Virchow Krause, LLP, has been with the firm since
2000. He is a member of the public sector practice group and specializes in providing
accounting and auditing services to local governmental entities, including municipalities,
counties, and school districts.
Specific experience
sibilities of various accounting and auditing
> Manages the day-to-day respon
engagements.
> Supervises the work performed by multiple associates during accounting and auditing
engagements.
> Prepares comprehensive annual financial reports, which have been awarded
Certificates of Excellence in Financial Reporting from the Government Finance
Officers Association and Association of School Business Officials.
> Provides strategic planning and implementation services for government units,
implementing Governmental Accounting Standards Board (GASB) pronouncements.
> Analyzes clients' control systems to assist in implementing beneficial controls that are
cost effective to clients.
> Assists clients in developing account structures in order to comply with state
reporting requirements.
> Identifies client opportunities for efficiencies and cost savings.
> Audits of TIF district results and efficiencies.
> Develops "best practices' for municipalities.
> Conducts inventories of capital assets.
> Analyzes policies, procedures, and controls.
> Conducts risks assessment standards.
> Licensed CPAin Illinois.
Industry involvement
> American Institute of Certified Public Accountants
> Government Finance Officers Association —Special Review Committee
> Illinois Government Finance Officers Association
> Illinois CPA Society
Education
University of Illinois - Urbana -Champaign
Bachelor of Science in Accountancy
Page 1 42
Appendix A: Resumes
Jason K. Coyle, CPA
Partner
630 645 6205
jason.coyle@bakertilly.com
Jason Coyle, Partner with Baker Tilly Virchow Krause, LLP, has been in the accounting
industry since 1997. Jason is a member of the public sector practice group. He
specializes in providing financial and compliance audits, as well as accounting services.
Jason has extensive experience with counties, municipalities, special districts, and school
districts.
Specific experience
> Partner -in -charge of financial and compliance related audit engagements for local
governmental entities.
> Routinely assists local governments with the implementation of new accounting
standards issued by the Governmental Accounting Standards Board.
> Reviews and provides guidance for Comprehensive Annual Financial Reports, which
have been awarded a "Certificate of Achievement for Excellence" in Financial
Reporting.
> Performs internal control reviews of municipalities and school districts, providing
recommendations on policies and procedures to strengthen internal controls.
> Provides Tax Incremental Financing (TIF) compliance audits.
> Partner -in -charge of single audits in accordance with OMB Circular A-133 Audit
Guidelines.
> Presents annual audit and financial results to various client boards.
> Leads operations reviews designed to improve the efficiency and effectiveness of
business and finance operations.
> Member of the Special Review Committee of the GFOAwhich reviews financial
statements submitted to the CAFR program
> Licensed CPA in Illinois.
Industry involvement
> American Institute of Certified Public Accountants
> Government Finance Officers Association — Special Review Committee
> Illinois Governmental Finance Officers Association —Technical Accounting Review
Committee
> Illinois CPA Society - Governmental Accounting Executive Committee
> Illinois Association of School Business Officials
> Speaks at industry conferences
Education
University of Illinois - Urbana -Champaign
Bachelor of Science in Accountancy
Pane 1 43
Appendix A: Resumes
Patrick King, CPA
Manager
312 729 8079
patrick. ki ng@bakertilly.com
Pat joined Baker Tilly in February 2011 and is a member of the Public Sector Practice
Group. He started his public accounting career at CBIZ MHM, LLC and worked there
from 2005-2009. After that, he worked at another firm performing internal audits until
joining Baker Tilly.
Specific experience
> Provides audit services for municipalities, school districts, and other governmental
entities.
> Supervises the work performed by multiple associates during accounting and auditing
engagements.
> Prepares comprehensive annual financial reports, which have been awarded
Certificates of Excellence in Financial Reporting from the Government Finance
Officers Association.
> Performs single audits of federal awards in accordance with OMB Circular A-1 33.
> Provides payroll audits for municipalities, fire districts, sanitary districts, counties, and
libraries.
> Analyzes clients' control systems using the risk assessment standards to assist in
implementing beneficial controls that are cost effective to clients.
> Assists clients with various accounting issues.
> Audits of TIF district results and efficiencies.
> Analyzes policies, procedures, and controls.
> Licensed CPA in Illinois.
Industry involvement
> Illinois CPA Society
> Illinois Government Finance Officers Association
> Illinois Association for School Business Officials
Education
University of Illinois at Urbana Champaign
Master of Science in Accountancy
Bachelor of Science in Economics
Page 1 44
Appendix A: Resumes
Nick E. Cavaliere, CPA, CFE
Senior Manager
630 6456244
nick. caval iere@bakertilly.com
Nick Cavaliere, a Senior Manager in the Public Sector Practice Group of Baker Tilly
Virchow Krause, LLP, has been with the firm since 2005. He specializes in providing
auditing and consulting services to local governments and school districts.
Specific experience
> Performs forensic review services to assist in recovery of misappropriated funds
through the use of computer assisted software.
> Provides assistance in assessing internal controls within an organization and
providing recommendations to mitigate identified risks in a cost effective manner.
> Provides outsourced controller services and training to local governments
regarding monthly reconciliation issues.
> Provides assistance in setting up accounting systems for electronic purchase
requisition modules, human resource position control modules, and customized
accounting reports to address specific system users needs throughout the year.
> Performs and supervises financial statement audits of local governments.
> Performs single audits in accordance with OMB CircularA-133 Audit Guidelines
> Consults with management to improve fiscal policies and to fulfill the board's fiscal
goals.
> Provides assistance with accounting system implementations.
Industry Involvement
> American Institute of Certified Public Accountants
> Association of Certified Fraud Examiners
> Illinois Government Finance Officers Association
> Illinois Association of School Business Officials
Education
University of Illinois - Chicago
Bachelor of Business in Accounting and Finance
Page 1 45