Title
Professional Auditing Services Agreement
History
On September 7, 2023, the Village issued an RFP for Professional Auditing Services. Three (3) audit firms submitted proposals, and Sikich LLP was selected to provide professional auditing services for fiscal years 2022 through 2026. In addition to demonstrating strong governmental auditing experience and technical qualifications, Sikich submitted the lowest cost proposal of the firms responding to the RFP.
Since the initial award, Sikich LLP has continued to provide audit services to the Village in a professional, responsive, and timely manner. Through completion of multiple annual audits, the firm has developed significant institutional knowledge and familiarity with the Village’s financial systems, accounting practices, internal controls, reporting structures, operational processes, and reporting requirements. Sikich also maintains extensive experience in governmental auditing and currently serves numerous municipal clients throughout the region.
Staff has been satisfied with the quality of service and technical expertise provided during the current engagement. Continued utilization of the current firm will provide operational continuity, maintain consistency in audit methodologies and reporting practices, reduce transition risks, and allow staff to continue leveraging the existing working relationship and institutional knowledge already established through prior audit years.
Transitioning to a new auditing firm would require substantial time and effort for onboarding, knowledge transfer, and familiarization with the Village’s operations and financial environment. A new auditor would likely require additional time to independently establish an understanding of the Village’s financial structure, historical information, and supporting documentation processes, potentially resulting in increased costs, inefficiencies, and duplication of effort for both staff and the auditor.
Based upon the firm’s performance, competitive pricing, and the efficiencies gained through maintaining continuity of services, staff recommends entering into a new agreement with Sikich LLP for the same services for an additional five (5) audit engagements through fiscal year 2031. The Village’s current agreement through fiscal year 2026 will be incorporated into the new agreement. Annual audit fees for each engagement year will be outlined in the agreement.
Financial impact:
Sufficient funds will be included in each fiscal year budget to cover annual audit fees for the continued auditing services.
Recommended Action/Motion
I move to approve the authorization and execution of a Professional Audit Services agreement with Sikich LLP of Naperville, Illinois, to continue audit services for five (5) additional audit engagements through the fiscal year ending 2031 per their proposal dated May 29, 2026, and as fully presented.
(Full motion - not necessary to be read)
I move to approve the waiver of the competitive bid process in favor of a sole source and authorize the execution of a Professional Services Agreement with Sikich LLP, for the continuation of Professional Auditing Services for fiscal years in 2027 through 2031, for a not-to-exceed amount of $69,075.00 for 2027, $71,840.00 for 2028, $74,720.00 for 2029, $77,715.00 for 2030, and $80,830.00 for 2031, plus any authorized overages within that year’s board approved budgeted amounts; plus include the previously authorized fiscal year ending in 2026;
AND
Authorize the Village Manager to execute all related contracts and documents, subject to Village Attorney Review;
AND
Allow the Village Manager to approve change orders related to the contract within the authorized amount.