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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: October 17, 2018
SUBJECT:
A Resolution Accepting the Proposal of Sikich LLP to Conduct the Audit of All Funds and Accounts of the City for the Fiscal Years Ending December 31, 2018, 2019, 2020, and 2021.
PURPOSE:
To facilitate the City Council’s approval of a proposed resolution that would provide for the engagement of Sikich LLP, to conduct the audit of the city’s annual financial statements for the fiscal years ending December 31, 2018, 2019, 2020, and 2021.
BACKGROUND:
Under state law, municipalities in Illinois are required to have an audit of their annual financial statements. Sikich LLP, has audited the City’s financial statements since the late 1980s. I believe that the Finance Committee and the City Council have been highly satisfied with Sikich’s examination of the city’s financial records. The firm’s assistance with the preparation of the city’s Comprehensive Annual Financial Reports has also been excellent as evidenced by the Government Finance Officers Association awarding to Aurora the Certificate of Achievement for Excellence in Financial Reporting every year since.
The previous contract that we had with Sikich for auditing services covered the 2014 through 2017 audits. Sikich’s fees for the 2017 audit are attached.
DISCUSSION:
Sikich has submitted the attached proposal to provide auditing services to the city for the fiscal years ending December 31, 2018, 2019, 2020, and 2021. The proposed services would meet the city’s needs. Sikich’s proposed fees for the audits are attached.
Sikich has offered a fee for all auditing services of $101,687, which is 3% higher than the 2017 fee amount. The average fee increase for all services is just below 3.0% for the four year term. Given the current rate of inflation and the increasing complexity of the City's many requirements under rules put forth by the Government Accounting Standards Board (GASB), this fee is very competitive. The City also benefits greatly from having the premier firm state-wide for governmental accounting. Sikich's expertise in areas of pension, TIF, and long term debt accounting are invaluable to the Finance Staff during each year as we adjust our financial reports in compliance with new state, federal and GASB regulations/guidance.
Sikich has no past-due balances on its accounts with the City
IMPACT STATEMENT:
Not Applicable.
RECOMMENDATIONS:
That the City Council adopt the attached, proposed resolution providing for the engagement of Sikich LLP to conduct the audit of the city’s annual financial statements for the fiscal years ending December 31, 2018, 2019, 2020, and 2021.
cc: Alderman O'Connor, Chairman
Alderman Mesiacos
Alderman Bugg
Alderman Donnell - Alternate
CITY OF AURORA, ILLINOIS
RESOLUTION NO. _________
DATE OF PASSAGE ________________
title
A Resolution Accepting The Proposal of Sikich LLP To Conduct The Audit Of All Funds And Accounts Of The City For Fiscal Years Ending December 31, 2018, 2019, 2020, And 2021.
body
WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, the Illinois Municipal Auditing Law provides that the corporate authority shall cause to be performed an audit of all funds and accounts of this municipality; and
WHEREAS, Sikich LLP, a firm of certified public accountants, has submitted the attached proposal, dated October 5, 2018, to perform audits of all funds and accounts of the City of Aurora, Illinois, for the fiscal years ending December 31, 2018 through 2021; and
WHEREAS, the auditing services provided by Sikich LLP, to the City in previous years were highly satisfactory; and
WHEREAS, budgetary authority for this professional service has been requested in the 2019 City Budget primarily in account nos. 101-2521-415.32-05 (General Fund), 510-2560-511.32-05 (Water & Sewer Fund), and in the Police and Firefighter Pension Funds, Retiree Health Insurance Trust Fund, TIF funds, and the Aurora Public Library.)
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Aurora, Illinois, as follows: that the attached proposal of Sikich LLP, to perform audits of the City's Financial Statements for the fiscal years ending December 31, 2018, 2019, 2020, and 2021 is hereby accepted.