Title
FY2020 Audit Contract Amendment
History
The following motion was postponed at the June 7, 2021, Village Board Meeting:
“I move to approve additional services provided by BKD relating to the 2020 audit in the amount of $19,970.”
This motion will need to be amended to:
“I move to approve additional services provided by BKD relating to the 2020 audit in the amount of $16,570.”
Since the June 7 meeting, Trustee Healy, and staff met with Scott Termine, Partner with the Village’s auditor BKD to review the audit contract amendment. After an in-depth meeting, the items are being submitted for reconsideration, with billing rates updated pursuant to the Village’s agreement with BKD rather than the current BKD standard billing rates.
For additional clarification, accounting standards are prepared by the Governmental Accounting Standards Board (GASB). The GASB pronouncements identify reporting standards, but do not detail the additional work effort that may be needed for implementation. Once those GASB pronouncements are finalized, the Illinois CPA Society (ILCPAS) provides additional guidance to implement those pronouncements, which include guidance on how auditors should test and verify components for compliance and statement implementation. Because GASB statements are the guideline for financial reporting, the final work effort is uncertain until ILCPAS provides its guidance. It is common for such work efforts to be omitted from base audit fees and added as implementation fees.
In addition, the State of Illinois passed legislation that required additional testing and reporting standards for its grant reporting process (Grant Accountability and Transparency Act [GATA]), which was not known during the original RFP process.
Traditionally, an audit agreement assumes that there will be additional time needed for the first year of the engagement. Then subsequent years typically run smoother. Due to Village staff turnover, this engagement has had the equivalent ...
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