R-1248 - 03/26/2013 - FINANCE - Resolutions Supporting DocumentsITEM 10.0.3)
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AGENDA ITEM
Regular Board of Trustees Meeting
of
March 26, 2013
SUBJECT: Audit Services
FROM: Sharon Dangles, Finance Director
BUDGET SOURCE/BUDGET IMPACT: Financial Services Management 211 - 76100,
Promenade Special Tax Fund 283 - 76100, Water Operations 351- 76100, B &T General
Operations 811 - 76100, Golf Club General Operations 831- 76100, Police Pension 291 - 76100,
Firefighters' Pension Fund 292 -76100
RECOMMENDED MOTION: I move that the Village Board waive bidding and authorize
the Village President to enter into an agreement for audit services for fiscal year 2013 and
2014 in the amount of $34,700 and $36,100 respectively with Sikich, 1415 W. Diehl Road,
Suite 400 Naperville, IL 60563.
Background/History:
As a result of a competitive request for proposal process, in 2010 the Village Board approved the
selection of Sikich as the Village's auditors. The agreement entered into at that time was for a
three year period ending with the 2012 audit. Thus, at the present time we are not under contract
for audit services for the 2013 fiscal year.
Historically the Village has employed an informal policy whereby the Village's auditor is rotated
every three to five years. This is done in order to periodically have a "fresh" look at the
Village's financial operations and procedures. As Sikich has served the Village for three years, I
am requesting that the Village President be authorized to enter into an agreement for audit
services for a fourth and fifth year for the following reasons:
• The audit services performed in the past have met all deadlines established by the
Village, and have been very flexible and cooperative to work with.
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Last saved by sdangles JASHAROMAgenda memos\2013renewalaudit.doc
Last printed 3222013 10:34 AM
• After entering into our initial three year contract, Sikich has had to implement
comprehensive new accounting standards as required by Governmental Accounting
Standards Board. In my prior experience when these types of situations arise it is
common for the auditor to attempt to collect additional fees since these situations could
be considered outside of the scope of services originally contemplated. Despite the
existence of these issues outside of their control, Sikich has never solicited additional fees
from the Village.
• They have proposed a slight increase of $1,010.00 from their 2012 fee amount for a total
fee of $34,700 for the 2013 engagement. The 2014 engagement fee is $36,100, which is
a $1,400 increase from the 2013 amount.
• This will save a significant amount of staff time associated with changing auditors. This
is due to numerous internal control questionnaires and testing, familiarizing them with
our accounting systems and procedures, revisions in the type, amounts, and formats of
workpapers, etc.
If this recommendation is approved we intend on issuing a formal request for proposal for audit
services next fall for the 2015 -2017 engagements.
Recommendation:
I recommend authorizing the Village President to enter into a contract for $34,700 and $36,100
for 2013 and 2014 audit services with Sikich.
Last saved by Wangles 1: \SHARON\Agenda mennos\2013renewalaudit.doc
Last printed 322/2013 10:34 AM
RESOLUTION 2013 -FI- AUDIT -AG -R -1248
A RESOLUTION APPROVING THE WAIVER OF COMPETITIVE BIDDING AND
AUTHORIZING THE EXECUTION OF AN AGREEMENT WITH SIKICH, LLP
FOR AUDIT SERVICES
WHEREAS, in 2010 the Village of Oak Brook ( "Village") entered into a three -year agreement
with Sikich, LLP of Naperville, Illinois ( "Sikich"), for the performance of audit services ( "Audit
Services'), which agreement ended at the conclusion of the 2012 audit; and
WHEREAS, Sikich performed the Audit Services to the Village's satisfaction; and
WHEREAS, the Village desires to enter into a two -year agreement with Sikich to perform the
Audit Services during the 2013 and 2014 fiscal years, which agreement is attached to this Resolution as
Exhibit A ( "Agreement'); and
WHEREAS, Village staff recommends that the Village waive competitive bidding for the Audit
Services and enter into the Agreement; and
WHEREAS, the President and Board of Trustees, being fully advised in the premises, have
determined that it is in the best interests of the Village and its residents to waive competitive bidding for
Audit Services and approve the Agreement;
NOW THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: Recitals. The foregoing recitals are hereby incorporated into, and made a part
of, this Resolution as the findings of the President and Board of Trustees of the Village of Oak Brook.
Section 2: Waiver of Competitive Bidding Requirements. The advertising and bidding
requirements for the purchase of Audit Services shall be, and they are hereby, waived in accordance with
Section 1 -7-4 of the Village Code of the Village of Oak Brook, Illinois.
Section 3: Approval of Agreement. The President and Board of Trustees hereby approve
the Agreement with Sikich in substantially the same form as attached as Exhibit A, and in final form
approved by the Village Attorney and Village Manager.
Section 4: Execution of Agreement. The Village President and the Village Clerk shall be,
and are hereby, authorized to execute the final Agreement on behalf of the Village in a final form
approved by the Village Attorney and the Village Manager.
Section 5: Effective Date. This Resolution shall be in full force and effect from and after its
passage by two- thirds of the Trustees and its approval in the manner provided by law.
[SIGNATURE PAGE FOLLOWS]
APPROVED THIS 26th day of March, 2013
PASSED THIS 26th day of March, 2013.
Absent:
Resolution 2013 -FI- AUDIT -AG -R -1248
Approving Agreement for Purchase of Audit Services
Page 2 of 3
Gopal G. Lalmalani
Village President
ATTEST:
Charlotte K. Pruss
Village Clerk
EXHIBIT A
#12723667_vl
Resolution 2013 -FI- AUDIT -AG -R -1248
Approving Agreement for Purchase of Audit Services
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