CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Waive the applicable provisions of the Naperville Procurement Code and Award Procurement 17-041, External Audit Services, to Sikich LLP for an amount not to exceed $104,045 and a one-year term. (Requires six positive votes)
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DEPARTMENT: Finance Department
SUBMITTED BY: Rachel Mayer, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
The City uses an external auditing firm to perform a financial audit of the Basic Financial Statements of the City of Naperville in order to express an opinion on whether statements present fairly the financial position and results of operations of the funds. The examination is made in accordance with generally accepted governmental auditing standards and statements of the Government Accounting Standards Board.
In addition, the auditor performs a Single Audit in accordance with the Office of Management and Budget, Statement A-133, whereby the federal government, as a major grantor to local governments, is able to obtain assurance regarding the entity's internal control structure and compliance with specified laws and regulations.
The City's current contract with Sikich LLP to provide external audit services ends December 31, 2017.
DISCUSSION:
Waiver of Section 1-9B-4 (Methods of Source Selection) of the Naperville Code is required because the recommended process is not one of the enumerated methods under the Code.
With the contract term ending in December, the Finance Department would typically conduct a Request for Proposals (RFP) to select a new vendor to perform the external audit services. However, Finance would like to retain the current vendor, Sikich LLP, for another year. On January 1, 2018, the City will begin using the new ERP to perform the accounting functions. It is important for the auditors to remain consistent to provide assurance that the transition is completed properly and in accordance with Generally Accepted Accounting Principles (GAAP). Sikich LLP ...
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