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HomeMy WebLinkAbout8.1 Motion to approve the Auditing Services Agreement with Sikich LLP for a five-year period from 2026 to 2030Subject Meeting Fiscal Impact (Y/N) Dollar Amount Budget Source Category Type Information Item Cover Page Motion to approve the Auditing Services Agreement with Sikich LLP for a five-year period from 2026 to 2030 September 1, 2026 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD Y $342)735 General Fund NEW BUSINESS Action Item rotatesThe Village auditors The current auditors, Lauterbach & Amen audited the Village's financials from 2020 to 2025. The Village issued a Request for Proposals (RFP) for external auditing services in May 2026 for a five-year engagement covering fiscal years 2026 through 2030. The Village received two proposals: one from the Village's auditor, Lauterbach Amen, • and one from Sikich • Discussion The Audit Committee met on August 20, 2026, to review the proposals and interview representatives from both firms. Both firms were found to be highly qualified and capable of providing quality audit services to the Village. Lauterbach & Amen submitted the lower -cost proposal, totaling $247, 100 over the five-year period, compared to Sikich's proposal of $342,735. However, Lauterbach & Amen has served as the Village's external auditor for the past six years. The Village has historically rotated its external auditors as a matter of good governance, although no formal policy currently requires auditor rotation. The Audit Committee believes that periodically engaging a new audit firm provides a fresh and independent perspective, promotes auditor independence, strengthens accountability and public confidence, and may identify opportunities for improvement in the Village's financial reporting and internal control processes. Following its review and interviews, the Audit Committee unanimously recommended selecting Sikich LLP for the five-year audit engagement. Village staff also concurs with the Audit Committee's recommendation. Please refer to the full recommendation document from the Audit Committee attached herewith. Alternatives 1. Approve the Auditing Services Agreement with SIkich LLP for a five-year period from 2026 to 2030. 2. Action at the discretion of the Village Board. Staff Recommendation Staff recommends approval of the Auditing Services Agreement with SIkich LLP for a five-year period from 2026 to 2030. Attachments 1. Sikich Audit RFP 2. 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W W A W AIN 2112 Mr. Arnit, Thakkar Finance Director Village, of Mount Priospeol, 50 South, Emerson street , Mount Prospect, 1L 600516 S I a,s Indepenclent auditors for the V'Ill �agle of Mount, ilk"ich is, pleased to be conside, reld for the appointment, Prospect (thy Vi III aig e),'Wek believe,. that OLir qUall1fications, experlience and expertisle are clearly d1'1s,t11n�gL1jShr,,,1,b,le as indicated, ll win Ipropos,a]. The expertilse we posses� in'thie state and local government indwstry Is demonstrated by our oar staff' s involvernent In'the indUstry and out leadier0ilp roles in va rigovernmociatic)n,. Our c1l"ents, receive the quality and, timeliness only available �frolm a oon,,ipan ous en't ass s, of our cal'iber. 'We have received the ReqUest 'for Proposal and are preparied'itio corminift the, teS0Urces neciesi-sary to prov ide servicesto, will niot only perfoii-m th� udit, bUt we will, also provide goverritT)ental accOfflfinq anid fin,,at)cilt,eploirt'liliq expertise and technical assistanicle year .'We undlerstand the scope of the work, to be performed,, zamd thie timing requirements as, specified in the, ReqUest for Propocsal and are Itted to performing the,.3,peo rt comm Jfied services wlth]n that timeflil tie. we zal which 's, a., f irrn and irrevocable otter �f'or 120, days and appreiciiate the opportunity,to, present this, prpos i o Ill , forwardtoth� ibility of serving ttie'Village of'Mounit Prospect. md, Mart h,a'Trotter, CPA A nt, h o ny C etry ini, C P A, C F E Principal Principal ( 6105 3 1) `66111-8574 anthony.1c;ei,vini@siki(,".,,),, 0"OrTill 00 Propowi-I for the V1111ag'10 OtMOLIfIt PrOSP,eClt 3 J, SIK"ItI11111111111.COM uta've su. Your Mich team's priority is to sitren�gthen the Village of Mount Prospoct through our partnorship., We'111 achlie'vei this by C o b ning ou v�o ",t,erm success, as, yolu dof inoit. expertiso and tho, latost tools and 'technology to alchio nq lo Understanding your current chaallenges We, understat')(AtiHat u are looking to Partner with ia cvnpanyi -thI will keep, UP with the eve',,, r-changing standards of the Governmental AcciotimflnStandards Roard. Wo have dieca des, ollf experience serdin g the local government inclustry and look forwarld to the opportunity to partnier, Iwit1i you to, help met y 0 L! r' lo bj e c t'i s, ,and to drive yo 'zaflon florward. ur organ I Det"IM gI'll.,yOuTRA'Ure st,iccess, Your success, Is ration, is, at the, core of'oL zerve as, your owri sivccess, and collabo jr, work. Our priortty 11's to s trusted advisor and provido aid'vice and SUpporttug your iiccourl)ting f uncition. T'hie striategies w(,.) outline in this, proposal are, uniq'Qely crafted, for you, as we belleve they will produce mearlingful esults, and, po�Jflion your orgatilgat ibn 'for SUCCO-1518., (",",wt,to'know us Slklcilrh is a t Accouin'ti rig firms aocoriding to Inside PublicAcco, unting and a, top 10 valUe- , op3OCer't'f'edPUb1'ic ad'ded reseller of technollogy prodti),cIts, by, Bob Scott's lnstght,'Top0 VARs List. Our success, lias be('�)m achievedthrough� jour cloal'ity service for clients arid otir Inv estmetitsire our team ., By I ri ltllzit IIalent and supplying thern with 1"rinovative teohnology,, your team, will be, ii-III atid o r,. Yo�ur �am, enga,ig, ent tearTli IS, cot'npr1sed of sellior-level i nf o rmm e id a bi 0 U t �t h e c h a I I e rli g (as, yo MI no o,, nte 4, government experts, that, will stop, at nothing to exceed expectatiion�',s% and help y,ovr organization succeed, O'Ur e ofservices, is, olt Alined'in'this proposal. In adidition to, trhesie services, we're, committedti(') al e 10, MUSS U-) I'lelp y("IYU Ur ", over s chrio I )gy'to d rive Sikich combines, deep industry k,nledge,, diedicated clientservice and CLItting-Odge te�, nt results for OUr clies. Ourtlean) ohan f miore t2,500 experts -I- is clientc;,; globally and across all 5,0 states — offer8 ar111111r111olf profeFosional services, to supportiany need, We, look forwartO Uncovering solutions to your challenges, and supplorting the liastin gsuv,;e, olfthe'Viflage. Proposal foi- tho,'Villagea of Mount Prospect 4 - 1� 00111111mM ii WMR111111M kJ rt e, e, 'We Ilike solvIng complex problems. More importanitly, we bask, in tho abifity to hol' p our co,ents thriveli. A When your suicice-ssi depe,,nift, on working with a qual"ified and cleclicate d team, a trost akich. YOUr 'team Is Icompletely cledicated to seriving the local goverrimont lindustry,, ens,,tiritig'ghat, we understand you'r challenges and what, Ittakosto realize Village will reoe'lve unparallelled levels, of expertise, i i I lnsjqhts, and responsivet)ess fr�om aa team ofsenior protiessionals who hiI extiensive experience working with local gover�'Ionetit et)'Otless, Wie key iery, of I° Ito recrUft the best, and retain quality, staff. We have, I narned as a Best Place to, Work by Craln's, Chiciago, Business for s, everal years, atid hasibeen, certified as a,,201,25 Greaxt Place to Work," in both the U.S., ar"id1n,(J,ia, marking ff-�iefffth consecutive, year 'the GOMP,any f'ias; eart'ieicl this� acciolade nationially ar'I the second year it"s, been awarded globally. The Village will be-tiefit If rom o I employee, retentlion by red u celd transition't'l me betwee. n y(.,)a,,r afte, r year,,, sa,vi n g I. you money and time. A, SENIOR MANAGER -SING GINII.KingNIP LE,AUDIT As Gina will b I -all the, single aticlit eiigaagerrtent mx')�na ger le respions"ble for the oveii mt of It &-e ati j,des m zi, n a g e m, c esting in a000rdanice wilth the Uniform Guldiao,(.I dlt,'Thisinck ,audt pari, he tt)-(Jepithr � eview, ofall workpaipe,, rs,, delvelo, ping and coordinatingthe o verall lI "l and the, review of the Village'ssirigle, aodt# Afleilill CPA AUDIT SENIOR MANAGER ie secondary point Of it Lauren will work i drectly alongside, the erigage, mie, til principal as thI V1111a,ge., LaurerIi will be r nce �t e�,,,rri aind contactfor the I esponsible tor leading the assura c %oordiriatirig all asstuirame eftorts. k Mwa,na Bec, AUIDIT MANAGER As corilitac -ig, relatedto the, the aLid"t managej, Niwania will be anottlij e i tforanythill SLICCOSSful audit of yo(ir org ainizalfloiti,, Proposal for tho'Vfllf lvlotir,vt Prospecit in Savio, CPA, MAS QUALITY CONTROL PRINCIPAL 411" The quality control prilnolpal will provide a second review of the a, Wit workpapers, and the M,� d rep r, Village's annual compre,li,ensive �f ir i-ancla 0 t# ervij"ill CPA, CF'E RESOURCE PRINCIPAL, Anthony M,. C 4"A thiony, wild be avai lab lei to, the engag ement tea m and sserve as a, n add itional reso,u rice f or Al A n the Village. 01. ssional starl" Other'prolfession al staff 11gne d to the engagerrilenit will, blefull -tiara employees of the company, In aiddition, all prof to golvernmen't engagements, mesh C PE re quiremeeats con,tained in the, U.S. Government A000untabll[ty Offlice, Govornmen't ALliditing Standards (2018/2()l,24)., Morielover,our government staff possess a specific knowle-dge of loical governilt accounting and replorting requirements and their application r local glovernments,'This, ihl e Iby, attendling of lea,st 40, ftliiirls per y1ear of a oombiniat'lon of externaland internal oourses. P'i,is, ena,bles our loompany to staff our governrililental engagealients wfith, cloalified professlonats in the Industry, p Iding valuable services-, to our golverritnental clienits during the audit and, throt.igho(it the year,, We oan rovi I assure youthea, t our professionalsitaft would not need any "'on the'lob, accounting! or financial reporting training"" by, your, stiatf. Moreoveil",wel canzi,5sure the Vlolle, the quality of staffing for a, multi -year engaglement. Stiatiernient" ]i rklk.)pendence Sikich has, avaluatedit5,li frotm the'Vi'llagein accoridance w[th gen erl;afly aUdifing stari,da, rds, the C;Yoveirriiiititial,Aud'ti'n,g Stiandarlds, 20118 revision, ptikiliszhed by the U.S. GeneralACCOLind ng ny Office, and the AICPA Code, of Gonduot. upon OUr evalUation, Slk2ch is tree o, f a personal a,nid external Impairment with respect to the Village and with riespect-to, any non- ca,ttest services provided to the Village, both in fact;-,",, d In, appearance to any knowledgel; blie thlt-d party. 1 if ",ilcense to Practice In'11111no's (ficiense #066.0055,28) I I Sikk,111) CPA UCis a, I'loensedl Public Accou,ntatit L,limilited Iiii.lability Campany All irtif "led Public Ac (CPAs) 4') Illinol' the, prinicipals assignedi to thil.5, (�naa; g" emletl)t �11,e licensed,'Ce I COL11lit% � �foir the'Village ol'Mouillit Prospect �010, Proposal MIMI What !,,; it, like to, work, with our team'? Ask our® clients-.. Op ien and one finies of Full-service and serIvicie-'11'echnicial knowledge; communication oriented and funiclional explerfise Professional Friendly, comfortable ThorOUgf,11, fOCUSed Easy to communlic ate wlth,e-iasy to Local; loc,,:atfon, 'is, key Continuity of the team; work, with is Tru,,,,itworthy they know, us RellzWe and dependable Helpful I,f yo u I re ra,dy to d efine yo u r fuitu re suoloesswith I the help of Su kic hr ask ou r ref eren oes about these, q, U 81RI es, thoo,it set Sikir-L'The following i's a list of engagements prevlosly performed, sim'14r to the eng,agement prfor the Village. . . .......... . . . ............... . . ..... . . ....................... Melissa Gallagher Fihance,Director V1,11age of Arlington Heights* (8471), 368-5,51101 33 South Arlington Heighm Road, rngallagher®Rvah.com, Arl'ingto,r) Helghts, IL 600,015 R,elevance to engiagomtent: Die(,%,ember 31 FYE, 1360-0 hOUrs, audit client for 5�1+,,years Rosmary MD'Adams FlInaince Director, Villiage of River Forest* (7018),366-18500 400 Park Averwe rrnca1dams,@vrf.us, River Forest, IL 6,03106 1 Relevance to engagemeApril 30 PYE, Ihours audit, client 'for 5 years, Brian, SmIth Village of Whoefing* D'r 1 -ector of Rnat')ce (847) 499-9020 2 Gornmunfty f3ou le, vard b,,snilt"hC6)wheel'['ngli.g�olv Wheeling,, IL 6,0090 Relevance to engagement: Decernber 31 FYE, 250 I)Msrs, audit, client for ,10+ years, Th(-,)�e glovernments participate, in GFOA's Certificate for E- cellence in Financial Reportinig Program. Proposal, for the Village of MOLIn't Prospect 7 S I C 1-1. C 0 M U,.r c,, ........... .......... et, se� il Ph C(AlaIx)riation "is a two-way street. We work closet with you fromthe start. Frorn setting 'Y Client ice Cycle expectations to, execating the plan and preparing for next 01 year, , comma nicaltion,and loollabloration are always front Identify 01? 7 Initiate Our approach starts with obtaini11 Un,derstandingg of' 02 your expectiations and your, operational and strati iglic objet',.-tives. We wlill die4fl� In -oach to exceed �your ou,r appil 06 Fil � expe�ctations,,., j Evalikigte 013 . .. .. . ..... . 1 ...... . .. .. . . ..... .. . ........... . ... . en,ou. . . . .. Our experience to insure yr engagement 1. III Develop taillored to the risks, Inherent In your, organization and the .... ... .. . . .... .. .. ..... . ......... ............ . .... . .... . envirionment inwhilloh,you operate,,, with eyes on 4 '111 P i o vide .... . .. ...... I i " "' s i g I " t .... . ........ 04 . ......... ...... . .. . .. ... . . ... . . ... .. ... . . ... ............... ... id'ent'lifying financial and opera, tilorial la) provernents, 1,-> Execlutie, Cori i-nunlicationis, key to coll4boration,* wII Iwill seekto avoid an Iswrprlses and keep you, appraised of prolgress and any fir lIll,irli on timely basis. OUr a,Lldilppr, ch At thie core ofiour bussine,�ss, welhave been; and always " ' 11 be an organization wilth afocused aUdit met hod,ology s,o, pported by a robust technology platforrm'We"re proud to boast the latliest technological resiources, world-clas-is, SLid),Ject-rnatiter experts, and soughti-after cirIII dentials, to stippiorlt, youir auldit telami., Measure twice, and out orx,.,-e, 'Siotin(i planning at, the front,l­�end of the engagies'nen't, all oms 0, or team 'to plan a nd Create (.f 1Ienlcje s that benefit you., OL11" M1,11ti-faceted apro aoh will begin, prior tO YOUr year-end with (;ertain preliminlary and ll nnin Iprocedurios, su(,1.k.111i as internal (,,,ontrols assessi-nent and teStS Of" controls and audit iconclisslul,oiiI of our Planning of' orv,.,,. will be the developmeintof det',ailed a, (11d it p roig rams', for al I sig nif licant e I em ents, oft he fain rlroiall sta,,tern eo nts, as we] I as sig nificant, Co m P I laTic e. matter's,. Our dietalled audift prograri,isii will Imdudie procedures designed to obtain rnaximit.,m), audit efficiencies. The second phase,, oit,iiir anifive fieldwork, �will be performed after year-end on a schedLflei that Is flexible to your net ndrepiorting requirements. Audit Plan development I. termination ofmaterialit y ALidi't r'isk, evaluation I tot," detailed docunientation of thleinternaff], control Interviews Mth mianagei"nent"to pir 1 1 strUcture assess risks thiat may' restiltin rnaterial Interiviews and analysis Of 811idit eviderx,,,e toidenIlflify and' misistiaterneot due to frauld Measurement of accounting c,*mplJarire re I I 'I I po riting by id entif ying a, nd toot sin g. on, area's s itive'to orga,,Nzaitions like., the Village of Mount Prospect ensi 1 1 Perfortinanoe oftesting to evaluzixte, your organization"s internal control strLlCture Corlitirm do Iof rius ac=unts, ertorrr ant lot sub8tantive testing and analytical procedures Proposal for the. VilltlM011m, Pit,,ospipct r WHIMMM Audit standards 'T'he objective ofour aLiclit is liSSUe an; uni-Inodified, opirillon on the Village t's governmental activit'lies, business - activities,, ea, ch major fiiiind and gr the ag mprise the egate renialn'Ing fUndinformatilon that collectively I inn gill e',�icordance with generially accepted 'ags bisic f ill staternents. The aLjdIt: will condLIcted iri, ac aucilfing, stiandards as set forth by the American'Insfituite of'Cerfifled Public Accountants,,, and� if' rieces%isgar y,, genorall y accepted governaient audilting standards'l, ssued, by the United States Grnmn't Accowntabifilty Office (GA0, 2018/2024), he Single,AUdItAct , of 199168irid the Uniform Guidance, We will issue an oplinloin on the Ibasic financial statements and will subject the corribining aand in ividual fund financial arid scheclules, arid a,tiy information'tothe, auditing procedu ress applied lr), owr audit of the financia, I statements and certain additional procedUres, 'in rcludink comparing and reconoiling SLIch inforrnzitilor"i Oreotly to the undierlying account"Inganod other re',corlds u1sed 'to preparethe financial sti emeflt$ or to the and other addifl,onal procedUres, in accord arlc,,�e with auditing standards financial statern o- nts thetm,';eIves, gerierafly acc n o I I I ,ep��te�d'in-tllie�U�n'l'ted,S,ta�t�les,of',Aimericaa,,,ndwillprovidi(-)a,t�lliolp'i'�iiio � s, taternents, as a, whole. In addition, we will apply certzlain 11mited proceduresto the, Required Supplementary Informtaxtion, These limited procedures will consist ofmanagernent, inquiries ragarding the metholdsi of preplaring the 'Information and compar,ing the, information for consistency with rnanagement',s, riesponses, to, ourinclu4nes, the basic financial statements,, and other knowk.,,)d1ge we obtained during our, audit, of the basic finaricilal stateme, Ms. We will not express an opinion� or provide any asSUriance oil the, information because 'the 110ted, prociedures do [lot fro v w Ith sufficlent evidenco to express� an opinion o,r provl,de any as's , 'id e us , urance. W `11 not a,ud"t the Introductory or stat"Is, bical �of the annual c I I wil I I ,lornprehensive finiancial r�eport ailld e accordingly, will riot express an opirfion on the ire' formation con'tainedire these s Wherever possibliel, we will utilize your o ol max''I'Milze efficiencies tarild contain audit cosits,,, 'We, request that, Ihe VJ I lag e provi d e us with t he bas ic info rmation roqi.,ii red -f 'roar au dit" Practical and letter We befieve the managernent letter is an importz ),nt part of terg merit, and we enCOU'rage all membenog of our engagemien't team to givie thiOUg.htful c.,onsideration toward developing constructive comrt) e, nts within the co t n�s;tra,'Irits of the overall engagem, ent. Our piolicies regiarding, man a glernen, letter,,, d1liere, to the, I)rofessional Standard,s, of the,AI,CP�A. If Bali gnificant ef it i n ie, s, and matio:,.rial weakne,5,ses, in internal c�ontrols are notled clurling, thie audit, they ttive required tio be- communicated'in wrIt'ing to those chiarged with goverriance, Items, o' an irnmaterial nature (ie,,l ri ll problems,,, minior procedures or replorting problem% etc,) are, communicated 'to, manag, et'nent. In both cases, wo, adhore to a, strict company piolicy that all c cxtiorli,s, ommients aridl recommende are discussedlin Iprelirninary form with apt)ropriaite plersonnell priortotheir communicatlom, 'Ili sall ows, 'for, clarification ofmis,,undet s, tandingls,, i"niscommuni,cation or corn pensteit'ing clontrols or factors which may in Place+ QL11"ality Coii,troll At Silkich we, are oommitted to providing the highesst (ILIality at.,Adits in the inclustry.The Village can be ,:i.ssur ed es- Quality cont'rol Is, so llniportant of reQeMing the highest level of I quality and othicafl prolfessionalservic to us that ourcompa, riy has been 4a miernber of "the Private, Companies Practice Soctior"i of the Division for CPA FRIMS, of th, e, AMPAsince olor f ormationin 1982". AsSUCh, we hav, e violumarfly submitted ouIr audit ia,nd acclouriting, praotlioeto, quiality control revilews of our cori'ipflarlice, with, professional standards as establisfied byt[le- AICRA and, more recen,tly, by th�e United $ta,tes vei,nrii�en't,A,cCOLin'tabill'ty Office, for rti�ore than 3,01 �a,rs. ,531n,ce our company's, inception, our CPA, firm andifts pie,,decessor parties have recelved onmodlif"Ied ee . peer review reports. As required by professilonal standards, we ondergio a peer, revilew every thi-years, Per i the Viligge Of MOUnit Prospect oposal fo .SIIKICR.1CO3M A "Pashs" peer, review reportis t1he highest i ii recognition conferred upon a PLiblic accounting firm for its qual'it *o, we go beyond the external revilews and main-tain sitroing, Internal reviews of ,y oontroll systems,. Als, proceclures, and proces<.;,es witl,i� over,silight by our Quality Assurance Conirnittee. Please refer to the Exh`bfts, section for, a, copy ofour most recent peer, review whilcl-Ii review of specif ic govell riftlient engagements since thliS accounts for a significant segment, of our practicie. I'n, addition, OLIT reports havie been reviewed by numeriour s federal and stiate over; igflit bodies, andI rofessional orgianizations., SlIkich hass not been the subjert, of any disciplinary action or Inquiry during the, past five years. Slikich Is a mernber of theAICIDA's Goverum entalAudit, Quality Center (G AQC), whi' c h is ax oiornpany-based voluntary membership center des,''Ignedto promote theimportlancle, of quality governmentalaudlts,, and the 'value of these audits, �to purol"iasers of golvernment, audit serviceti. As, a, rri�etT,iber the GA,QC, SIkich has, access to key in and comprehensive reso,u�rces that we use'to ensure our compliance wIth appiro 'i�a,tepirofession,�i,,Is�ta,ri�da,rds,,a,ndla,,wsa pr nid regulations that affect, our ud,lits,,,,'Th,roucjliowrmeinbershi in the GAQC,, we also, adhere itio mein ber,ship requirernents designed to enhang e ith�e quality of our audit practice., Proposal f'or Vie, Whag I of'Mo e urit ProspaICIt 10 S'IKICH,.COM 11111111M 40 * h W-1 Sflal.C.d h'y We stand out, Un our indt,o�tryf and we are proud of thall What st'arted, In humble beglinning,sas a, small accountinig f Irm ha,sg" rownAntio an technology -enabled cornp,�-jxny o, f the; fot ure. And we're not le'tiinn off the gas. In short,,, here's,what we bring tio yoo., IndUSAIry experhmice I Sikich's, local government team provides Seri t more than 4501 units ofloca governmienit. IMany of have been long-stianding clients, an d' are evidence Of OUr dedic ation 'to the looal government indus,'ary, and our, ability to, proidle high quality, tirnely servitess within this s,p ecialized industry. These ents, and related work, i have enabled OUr company to, do. velop, an extensive nationally recognIzed expertisein governmentla, I i � procedUres and practices, acCOUntlng, aud"Iting anid financial reporting Senior members ofour, local q overnment team precserltly hold meriiberships and a,r�e attive ly involved in ,, nurn,erous governmental organizations, Inc luding AICPAG, overnirneritAudit, Quality Ce, ritor Iflinoils CRA Soc-lety (IC,PAS) ,Ari"),er�ilr,art)',iriti,tute of Cert"Ifiu li iiir i Gol,v,e,,,. mrilient Finanioe 01, f icer's Accountants (AICRA) Asso. lo.Jation (10P10A), 111"Jilois Library Associatibn (ILA) Central Assocla, tllotli of and UI niversit, y Bus!n,ez%,s,,,, Officer-s,, (CACU8-()' Illinois Monicipal TreaSUriers, As',sociation GFOA Special Review Cornmittee, (SRC') (IMTA) Go 1111no"Is, Parks and Rie(:,,rieation Assiodiat'lon vernrne�r�t, Finarice Officers Assodatio of IVII,ssourl (GFOAI�Imo) (IPRA) Governmont Finance Off ice is Assololation of the Unit ed Statec,�, an(J Ganada, (GFOA) I1111nols CIDA Society Governmental Report Review Convnitteles, Illinois Oolvernment, Finance Officers. Association ('IGFOA') Technical Accounting Review Clot,nmittee N Illinois A*stsociatJon, olf'County Board Members and Commissiloners, lllinols Associationot Pire Protection Districts Illinois Association of Park DisarIcIts, (IAPD) 111finols Association of School Business Officials (IAS130), IlliI nois I City/Courilay Kana 111 ,gie�ment 1 01 Assocliati (ILCMA) Illinois C,ouriltiy'T',,t,ea,su�rer 'Asisoc''lla,t'lori (ICTA) Proposal 'for the Village of Motint Pro, p-ct .S I K I C H, LGQMM Access to sei iorresources MI o,�,Will gain confidencein your o, perations by working with atearn of art''Icul aten profe,.,,i�,slonals who hilave ogniflon, in t I I recelved the highest rec'' heir fields,. % demonstrate the Importance of our relationship, wel pled,ge to, provide you with unparalleled access to loui# most senior, ressources. or principlafis,are available, year-roUnd 'for direct consultation asissue s, arlse., 360--degre eview Man ls 11i Mike, but we Pride OUrsolves, In being clifferent. We bring 360 y, professional servime ces Compa deg rees of business acumen w our approach, which mea-,ris YOU hawe access, to, e�xperts in a, MUltitude of disciplines, Our teat'lins d u 10 I on't'L[St care about providing timielywork, priod,,ct,we, care about your organ z1at'' n's goals, yolur lelg,, acyy1our, people —and, l we have a deep bench of experts, to help with any rhallerage you have. Nothinmilak,es, uchap i thanseeing our clients, succoeld and your organization, f lourish. A coniplany r('X) iii, (-orel W1, OUr' dynarniwork ic(,tture flosters oontinued learning, growthand Iritliolvation.'We recrUl't and retain, qualifty tlelip ryiernbers that move os forward. Sitich's, cufltute is built, on, a flexible, trusting work envirionment and the ke 1111ars of Absolute integrity, Bia,,5 for Act ,yp , ion, C o ntlnuoLIS I n n ovatiori a ind Servant Leaders hip. W le be li OUr people arf,.), otir grealtest asset and work hard to ensr..jre, that a1lteam rnernberlel empower ed, comfortable and vialued., Acx',,,'e,l 'to edLlCatioll Ttl)e Village will', remain aware, of regulaidory, chatligels, ari best, orgianizational practicleezi as SlIkich's 'team recelves ongiolina continuinig (z:)(Jucation thelywill directly apply to t'll Village's engagernent., 'We, accomp. lils,h 'y and U15' V 'n I rietly of th18 by anticipating your needs based on OUr expe,rience with �yok,,) and 11 yoor ndustr Inua, a oil (,,,omn:iun1c, ation channels: fimInn ly responses to yo, or questions-inf ormal d11,5Cus,,srion$, hiok.0 ht leadersh]p on, tiopicsolf interiest, tio you; anild rielielvant seminars, all of whilich are, cornp,141, nen'tarly, for QUr' clients. F)astl toplics of thought leadership have, Included: G overnmental AOCOUnfing and Fihn*t. &-ial Amounting & Report for Cas 11) and, Reporting Update Investments, GASS Statement No. 871-easels, Preparing a, Marlialgem ent's, Dislowssion and GASB Statement Nol,,I, Pubfic-Pt,,Ivatie and Ana,lysls i viailabitity Pti,iblio-Pt.011c, Partnerships and A, Capital Assets iniclUdillng Asselt Retirenient, Paym,entAgran gements, Obligatillons aind—, nipainnents Staternent No. , Srub script[i Based Loing-Term Debt ndIIfIIIW Infori-nat'lon, Telchnology Arranger tienit ina. nil Report"Ung Entity (SBITA) M Accouriting forl,1,nsitolance and Employee 0,ASB Statiernent No. 11,001, Accout"itinig, Benelfilts, n II and Error Corrections 6 Payroll Reporting flor Golvernmemit , Entitle, S GAMStatlement No. 101, Comple-nsa,ted # Year -End I ll Updates Absences A IFra, ud and 'ant ernal Controls 13,A$,B Statement, No.,,102,, Rilsz*l Discloski FraUd and Cybersecurity In the Pernote AS Sty Statement No. 103, Pinanclial Repor"ting Model Improvemen'ts Prioposairfor tho-'Vilftagle �of Mount Prospect ,�IIIIIIIIIIIIIIIIIIIIIIIIIIIMMMMMMMM 12, LEIS 'We approa,ch every engagement witli a dedicated,team, bUilt f rorn our deep bench, of IndIUStry experts and ,designed for Optimal performance,'We treat LIT Clients like, family and bUild relationstifl pis thalt survive the test of t1ime. on belile vie, os? Ask OUr clllan�tsll, a perience ` ' A l, 1,111 g, v(-lrnment operat.1011S, Becau sie Of OU larg�e, id ilve rse, ofilent base an d'; our abl'i I'llity to attract talent f riom a, , vadrofess' onal backligrioutids, $11kich has an est-ablilstll)ed rep,utation as, onle of the leadinig prolviders, of profiessloe al serivioes governmental entltle8., Olur� team o�lf pr�of'eslsiotial�s,8,pe,lo'lalizes, in the managemen't,, operat'llons, flinancling of genera I-pcur pose locial governments. "ffils, focus an oikiir exemplary reputation assure the 'Villialge the hilighest q uiall ty w o rk, and thle most, cost- eff ective d ell i ve ry of sIrivicles. PropowAlfog l- the V1,11LIgt of Mount Prospect ..... . .... �S I KLC.H, t�Pl�wwQmMmmm, t IV' cl -e roa,c, P1111111111.1111116 es before you Onie olf our, strengths at Mich is our needproactive. We find poitential issu hilavol to worry, about therri, bocauso we! 11 re reacly with a soluItioni. ,I nittaive foir a,z ,rytheV'llige, Your tt,ansiffion to, Sikich vvilll be a non-d1sruiptive one. Martha, Gina,, L,auren, anliwiana h4tive, d Irectied -the transition olf rnany, nie\N, clients, and will bring experileno, e to the, Village" s agem,yenttearni.'Your engagernient tearn gill have continuot,,,is, tia,nid,,,,s,-�oin'lnvo�ivemen��t 'in wh�at wie consider, an lmporta,nt rel afions,,Np w Ith the Villaq e. We [iiavie manlyways, of achieving this, trans, itilon! st,..ichi Developing an agreed-tiiipon itimetable for cleliverables, and followling, up, reaularly on, their progress U i l'i i n n ise audit programiiii eliminating unniend cessairy audit steps aprepau ring aadi't sohedules and tzg c o c workpapers in exis,"fing, c lient, materials to, tfie i,e at,e,,,<s1t extent possilble 1VI r solutions ,I IiiUM-) P, c 1.1, One-ori-one 'i(j, swill receive customlized soil( ,irtiloris based on your Unique ne, eI an(,! only YOUr uniqtio n0-,(")'ds,. yo 'You will find that achille-ving finianicial stabilifity and growth, asvvell �,iis uncovering new opportunities 'to inn pr,ovei performance, is poss,ible thriough, the striategiesthat Sikich iexperts will recorinnerid , atxll on wfillich they will educate, you, Af ter a morle thorOLIgh revieration,%, we may, uncOver othio;r topportunities. As part of' our ongoing slervice and commiftment to the'Village, we keep you infortnecl olfregulatory cilioui. e �5 coxn(J best: practilces, 'to "de , cial opportunitiesthiat will 4eri the'Village. eiisiurewe 1 tIrAlIfy oru I fir yoitir $,a-,t'1Sf1)CL10r11 The Villa,ige,,`s succ ess "is built upon, the CILM; lity SerVice, and, valLie 'you feel y1ou recelve f rom Sikich, whii,ch is why we will clon'tinoally' qaLlge, YOUr saxtisfactilon'to enhance our, relationship. At various checkpointc.; during the emigagement, a, SlIkich repiresen'tative will meet" wih, you to how satisfied You fsave been with our servlc(3 S, ourteam and the valUe we provid,(,),Aireac,� stressed during these mieefings, will includel. What c,*;m, we do, tio rnake I servic,*I rywre valuable to you'? What, spe(,,%Ll1fic part, Of Our service exceleded your expectations?, ff In wfilich arems do you feel wie need DoOel like aluedlient? 11 What is, your visionfbt- the Village Of Meelt PrOl� eCt? 'kio the Milag, e of MoLint Prospoct III IIIIIIIIIIIIIIIMi M S1KICH,-4.,Q',Q M, i'lo,ns, 'We'll bring you thio team allid the process to deliver results,, a,i'm*ng to oxceod oxpoctat' olvery, step of the way* Our scope and fees a,re, ile .r, up-furor'A an(l aWays fair. Wr � Iprov1d'ing the following servicie.�s to the 'V'illage of Mount ProspeO a s specif led'in the R F'Pi: ,A tj d I t, of' b a s, I c firs an c I a, I st at e m e n t's ol f t he 'ill alge. -for t h le f 1,s, c a I yea r e n di n g, D, e c e m b e r 3, '1 �, 2 0 '2, 6 Preparation of twienty-f We (25) bound copies,,, one (1) tinblound coply, and an electronic copy (.pdf) oft'llie annual comprehens1ve financial rieport (report covers,, dilviders, Introductory section,, M&A and' clertain shtaPistil cial data to be provlded� he Vfflage),- I f'' � ofthe, rylianagement letter for �the Preparation of''ten ('1�0) bound cloples and an electron"lic (""Opy (.pdi ) Village, communicating any material weakne,<,�''s),es and sOgnifioan't defidencies fOUnd during the auditand our reco, m�me, ri,Matimis improveme Mal Preparation of five (5) bound 1c, ,o Ic copy �(pdff t�repo ) ohe rt on icoilnplian, e lw th Public pi es, an d an el ect ron" Act 8, 1 -1142 (TIP); P reparat'lon of 't'he A, natial F11 nancial R epo rt (A FRI) filewitt"i t h e Cou ntly C lie, rk and State C o m pt rol le r on electronic and thruri�ld copies), I , (5) bOUnd copies and amn electronio copy (,.,pdt) of the Single Audit Report, if Preparation fi of ve IS Pt Clearlingho�use, [V�;ipplicable repiarationof Datall Colle ction Forrn to be sobmitted to, t,h�e Federal Audi'' Ass ing a fulling -to apply for, the istiance in Complett nd filing the required appilication and supporting, documerits Certifilcate of Ar,11',iievement for Excellenceire Financial ReportMgl: Preparaition of twenty-five (25) bound coples, and an electronic copy (,.pdf') ofthe annual financial report of the Mount 1)'rospeCt PUb4c Library (report, covers, di'vid,er'sil, introductory section and MMA to be, p ided by tl-ie I ibraary), row I Retain mrkp,,(i,,pers for seven (7) years inaccordance with company standards, Repot-ting to the V111a.,ge, and� 'Li r ar IBoards, In accordancle with gorierally atcepti(,)d aLidilflng slandards, and Exi"t oonference(s) with Village Officials to prnt the completed audi't and ell ated materials. 47C 15, Proposal for the Villa,910 OfMOL11"I't Prospecit, ui111. IWL iW -0, 1W .0k ii 1 0% AM, k A Client se"ti'mell'ine Prenni,rmiry 1 r 11''il We Would meet With reprosentatives, of the Village to The meeting will be atIended by the discusst he o foicusIng on areas of particullar coricern tort trasm y` well as areIM,,3, ofhIgh audit rtsk,, and delvellop the time schodlule for complefingthe 1'''rettininary fieldwork We would dievelop an kiinderstaniding and This fAIA, Se, WOUld, be completed by cur' ientati n ofthe Vill'alge's,m untin and, the erigiagien,)ie tit pri,incipial, flnistraflve con'trols using is accoutifiniq proicedtires',on rrr"r"r°r and one We rnay perform complianceteating ' t'� rmtr , ,, detet,mine,which c:iontrols, ifaIny, that we 10,ould it l n durlfiq,'later l' asves of the audit, Sample,%,izos,mould be determined urirm th a ,e and gionorallyrange betwoon 25 and60. "' o would dievelop,our plamning m t irigllit ' on an opinion unit basis and complete a, prelUrninarynal 'tic" l troviow, of the Village's finanicill plus tion., would: Review all minut from the meetings oftl e Bol ,r of .I.,r s e �o d the Pension mr n'Y the Library, rieview allorldinances adopted by the Village uri t lm rW Re vio,w any debtgr menu ent,ored dwriniqthe year and analyze anyothor unique tra.nsacfioivs entered,into bythe V111age r ' rni OUr, fraud interviews In accorclancewith U d itir" g sta, nclards. Finalize all necessary corm f r rr-` at I re tliie Village i l l rar Review all, proposed cqen,t assisted or-k Ipapers arild thetirning r p r ion, h VOIAg Develop ra r.dIt progriarnsforthe next phase ofthe t-AUdit and review and clocument any changes,t tlh V I I 12-1 ge, 0S ninLm a, l COM P rie h e ns i' v, e f 11ni a, n I r e p o rt Preparo thoIhi S u l e for the r rti,a i d r of t1lile aludit. Pti,oposaj for th�e'Vfflage of Mount Prospect � i WMEM Clie'"I Itt Se Mcei timetine B6 I lehlwi(�)rl ... . ........................ . . . .................. . ........ .... 'We will complete, all our subi,3tanti-vo tiestinig of thie This phase would be completed by acco,unt balances andl prepare the draft, of tile Vills alge's th,e engagenie n't principal, financial statements with a, rough dramft lelf the fititanclial engint manager and one 'to statements provided totilie VI'llago ator near the two professional Matt conclusion of fieldwork. We would also, preparethe draft ofthe management report. An exit conferienco will be hold with officials frorn the Villageto discuss the proliminary riesults, of' the fieldwork, review any proposzod audit a dair sitmerat s, iflaw l a d1l u st edt r, i a I b a la n ce�; t h axt �a r e e to t �h e f i n,ia racial tat! o im e n't s ,;in( J a, , n y s I'q n i fic a nit f I nd I n g s,. Workpaperreview and, repor"t ' rodt.ld* P '1011 . . . . . . . . . . .. .... .. ........... — The workpapers, drafts ofill financial reports,". and the management, letter will be t,,oviewed by the resource prinicipal anditlie quality, control prinicipal. All workpapers aii reviewod, by t�he origagement prinicipal durisi)g pl,mse 1111to eiiiisure that all necessary Iniformatilion is compiled d this, phase to avoid ia)posing upon, the'Villaqe'si staff after fleldwork, has been cornplotod,, livercid, ")III c 11 �11111 I I . . ................. . . .... . ............. ... W1 e di I I d e I i v e r a p r e lirn In ar y d raft o -f t, h e,A n n wa Comprehensive Flnialail Report at the ond of fieldwork., A revised draft will be, cielivereld bythie. err gaguornient principal and reviewed' In-dep'th with ii-epresen-ta-tives of the Village withitithree weeks ofthe preliminary draft. A, revis,ed draft, Ifnecessary, will be deliveredto thie Village no liaterthanthree business, c1aysaft lor re, (,:01ving, all pr,po, sed changes,, .................. This, Phase woulci bo completod by the engagement princiApia l, rer,�Ouir,CL4 prM'inci l a, nd the quality coritrol, principal, T1111ils phlasewould be completed by thef eriigageniient principal,, Proposial forthe'ill age ofMotint Prospect '17 ............. SIK,ICH.0N M service; n C, Iii n, t linefine Corn, lefloili, of audit P ... ... . . .......... . ......... .... . ...................................................................... Upon approval of the drafts the Villageowe Will presient the signed, bOUnd copies ofthe annual loot,,,nprel�ionsive,finaincial'ip,epoart, , the management, letter and the, additional reports desicribiedlin thi's proposal., The engagelimen't prinicipal will be avallable, fir fings with representatives ofthe Vill,age including, Village President,thie Bloard of Trusteesand management, foir formal presentations ofthe report,%. 'he L, a,kt4e go,119 p(6� �rt to, t, P . ............................ . . . ........... OUr com�pany does riot llove that the engagien)ent ends, with'the exit confiet,lence. We strews U-I'ma we are avallable'throughout the year to provide tiechni'lical accounting and financial reporting assistance and sluppolittothe Village. In additioni, o constantly monitor recent events, in'the local goy eii-nmelit industily, including new pr,onouncoment,c.,3 th,�,,,A rTlay IMPaCt OUr government clionts,'and COMMUrl"C8te the effecit, of any prioposed, ch�niqes thrQLJqh,OL1t, the year. Moi-eonor, Qr litter olf reconvinenda,tionis eachyeav will ale rt tli-ie Village to ainy new prl"1i,n,loo,(,)ie�i,ii'(,,3 thiat may be,c,ome, effective In the next one to three,years inc[ulding the 'I , piotential effect, thalt tl . pro no un,coment may have on the fina, nicial plosition and/or changes in the financiA, I position, ofthe Villa ge. . .. ....... . 'This, phase wouilld be com1pletaid by fl-Ale engagemen't principal,, This pjjojwould be complietied; by 'the engagemen't princlipa.l., Proposia, I for the Village of Mount Prolsp ect 18 NO SUICACOM P otentlial audlit problerns Our cornpiany's approach to resolving, any problem that anse dUrIng the audit is 'llie same asour overall approach to the ii,,-iudit- professionalism. Professlon:alisrn in performing the aud"It'Isthile cornie'rstoinevitlo our philosophy during all phases of the atUdit.,kiny prioblems, enoounterI.Iring 'the atsidit, except for irrieguliarit"Ies and illlegal alots, will be d''Istuss-8d and diocurr),enled with'the Village Preslderi�t, Audit Comnilttee Chairi, Village Manager and Financ e, Dilrectoir,'The timing of" this diio' n will prolvide, the Villg, e with ani timle to rectify any 81hmfloins that may otherwise riesult In �the Istsuaince of a quallifitedaLiall't opinion, Irregularlifleis, and lillegial acts die, Itected or of hi ch w�ecorne aware of wi I! be corims nicated1r) writing totl)e appropriate level as fel , loillia defined h our pro, �s, I standards., Oor company's philioisoph:y on adiditional nd/or biings llis based on an understanding betwee, n Siklha end I the client, of' V.,)e f the work to be perrmed. We have proposed a, "not-to-excleed fee"" for the, auditt,' � I I e a 1dit, would the,scope and timing of which wash specilfied by, 'the Villialge of MOLD Prospect,'the billingsiforth L, not exceed thinless, the Village specitically requests h a t the scope of the engialgernent b e. expanded and �t�he Villaige. and Silkich, reach a mutual agreememt, in writing, asto the expandlie,,(,'i sc*pe of the engagement and t�' teejf any, forth expandeld s(,"Fo, 1pe. Slktoh will comply with all relevarlit ru les and, regulations Of all'thor"tatime bodles, and) the AICRA Code o f Professional Conduct regarding access tO Orr working papers ax)(,J aod"I't docurnoratiation. 'e' snab1 itequests for a cces,s will not be, denied. Prl foi- the Villagc;. i MOLIM Pt ospect, 1119 Our fees, are as priesented in Attachment 1, i alancies 11"hesie, fees assume tha,t 'the V111agle will provide, the audit'lor's with el (%,opies, of adjusted trial b by idiy le;dgers, indivIdual funds,, a, yieliar-to -date q, en e ral liodger with d e., tells of pos"tings to all acCOUnts, SUbsl ar that agree or are recoriciled to, th, e, genle, ral lie(Jigier, and 10 11 pr'lepare cortiain schedules of account analysis and coiff irmations of a ccount balanc, esO Tho Village rmay be required to implementcertain pronouncemerits throughout the periold covered by the aissued by the Government Accounting St andard,,oard, (GASB).Addlitiona] c,hia,res may be assessed for the assista, nce with of applicable stiandards,, deperiding, on the level of asslistan ce, requested bly the Village.Any potential additional fle es would bed'iscossed with the Village arld ag, re� ti)ponln meriting pirlor to additional work being periformed. 'If'an in' -depth a,sressment of the Vjllage`,o,,policiles, procedures, and internial controls for the Village's major I I I I I ' detiermination of prociesses is requested, a, separate fee will be provided L pon discussion, with the'Village and the stope of the, separate internal control evakiation e ngaigo. ment, Weirivoice our clieis, on a mon'thly basis as, siervlcies err rovIdield, Paymentsfor III services are dLJe, In accordance with applicable, statie, statutes, Propai�,al floir the V111age of'Mount Irospect 20 J, A, dc,es s,e�, d I if servilicies, OL11" ofexperit I ften complementary to one ano,,ther. How With a, c-omprehle, nsivie.5,,ulte o ise arle o el se WF e help yoL1 st, tire ng-then, �your organizaflon*P w Many itimes the chiallenfor which you enlislit''Sikich's help may faced rivilore, effeclitilvely, by Integrating se 'I GUOUr 8�ervlces.. Taake a look a, it what, we, off�er and talk, tO YOUr engaglement priincipal clbout hoW these vera i services,may complem,en't wh� u are already sIII ekinig, 1".. 1 Aspute advisory � I Disputes of any kiinid or size oan be ditficult to man,age, on your own. For example, what would happen If YOU begairi employee friaLid wilthin your organizaltlore ? A dispute advisory expert can overs,ee every aspect, frotin In,,sk.rance oliar prepar ation a,nd cloorldination with law authorit'lles, to creating a firatild prevention prormmandImro111,q iaW,� flron Internal ciontrols. Pos'll"flon, your brand for optimal coverage across, your client basel,indus-try and alidille-mice, all w hi I le t e 111 n q a c a, p t iv t i n g sit o r y it hat b u i I ds, relationshlstiilidIe rIil anr L[StOmer retention. Frotr design atid webs[te, developmet 1,,110 rnedia, coverage and prodUCt lai(Anches, y1our origanization desery es ample opportunifty to boost brand awaxen,ess, are reach a wig e't-anig, e offuture, lon' g- term, C0,11SLImers. Simi ill be fAnAia, r with the Village and slalted 'to, speak, In YOUrlangliage, 'to yoti,�Ircfientele. Fondi Ichiallenges,increased diemand1from stakeholderzt-7 and, (,',h,,a,,ngJ,ng,trends and, policies can makeft diff ic ult f o r riot -fir -profit orgar"i i, zations to reach their gloals., For thos;e farrill ar challenges aIN d others more specliflic to, your orga,nization, you neeld a professional servicies paartner with an: ind�us,tryi-deld'ica,,t,,ed! Ill ,�tlltI to dell vierthe accounting, aid,visory and teohnology servic es, that will help you work, 'toward YOUr rnlsslioni, Techm) I logy:se''rviO's Staying ahead of, or even 81rnply ki� ping Qp wlthl,i confint-milly charigiing and clomplex technological devielopment,� i be, challeinging, e-specially In the tiffle of,A1. Our tearer of experts i offer business mianagement, software, c*)ud'S01LJ't10I`1,S1, sstrategi(1,101 information technology and Uciorisultlti)g to drivie t h e V11 I I a g e t owia, rd inr , s e, d p ro id u ct "I vi, t,y a n d Prof Its. lic.11mlo It, x,) gy; secur, y c p Keeping thVillage salife frorn data breaches and other Info r1mation, secunit ycork ernis Is,, c,010calt especially given'thie viasit nuriliberof organizations, t1hat havie b en comprotiniisedire the liast, COLIple, Of' years, LrInderistand w1liere, the VU,1ner a,bilifles, in your n e t wo rk, lie, b y o btal n in 1 g, I n de pe- n d e; n It,, u n, b I a s e d and tiechnically qua,,Iified seourity, assessments— f rom penietration'testing to forensic. s., !�00 PralVillage of Mmint Prospect 21 "moo know YOU likely have many more questions, for us. Take a look at tho, attached clocuments for aidditional information aboutSik,ic�h and thoso, wtiic) will work, with you. Attachmen't', I ,I a-phies 'nga r, MarthiaTrotter, CPA Gina Kitig, MPA LaurenAllen, CPA N lwana, �Be�clot J'11. m Ski o, CAA, MA S Anthony CervInI,, CRA, CIE a 'I govertunent- scrvii(",�(',s )'verview o, Con-lql)any proflfe Peler revie'w It" 00.1 PI-IIOPOS,al ifr the Village of'Mount pros 22' All SIKICK,9,,� Al"F'I'ACIII 1, V1,1114AGE OF RE QUES-l' R,Yll PROfFOSAL A"UPYTING' SURVIClS ICI TE:'NlA,Nr 30�026 1-TE, COPIES DESCRIP"171ON PCITEDED-2026 2027 2020 2029 2030 lh.I.SIC SERVA TS77t) (A'I'MCN, ()IN A(.11k, ill,'N"ll if rmAl 20, 51500 $12M), %how) %7W) 1"UNik'N't"9dU 1 21) MOO cpso 1350 Wo 102m), TT�kTli N I F N"17 (3N A U [YU!" I N(i S "I'AN Dil kl)�iNl,� (il LFT 1"ER 10 wa 114,11 01A Ml I'M l!"A'AR NTION (W, "T''IfE I 10, wa 10 !".1v IN(,'ftLtMLN[ H'NA,N(l'N0 ()VIINK'N 5 2A50 11 W 11 7� 125f) A.AJI)FE" IR 1), )lk"T f,IT"'N F(" F �S SA, R)") 5 1150 4300, U30 435f,) GQ500' 67.6510 7qNSS A , indody I h! V RMPO AC FIR 00 n 0 n c ous OTHER N's , I L, 30 5,W) 1600 1750 61001 FINUML KhRMA"ll 1"(")N i0l'-', E R.S. IjUO 1AW5 1,210 FINANUAL REPORT FIR d%ND'I".1 1,1 1 INOts DE, f1l". ()[ I NS'l TR A N(l F 11111,10 It, 'S". NAACT, PENSR)N' 0 W) 4500 4,700 M), Jim 5,400, J)F'NSION F"l-I'M3 tff''S U00 A 150 5 AQC) '"7tESICIN' �kTIJRE C)FA]OR lZE DE [T.-, S ERF,7v MAR Tom" IIIIIm Ne!',K[E (0,A1 MY)MUT") ftEPRESEN I Al INT pri"401 5 SIKICH,. L,000n, NApe rvi I le# I L P: + 1(630) 566-8581 F: + 1(16310) 4199-86618, NMI Martha, Trotter CRA, principal "T EMM Service a,rleas Giovernmental audit and aCCOUnting Governmental thancial replorting Affillations IN 11111nolls Government Financo Officers Assochation IN Illinds CPA Society Education 0 Bachelor, of Science in Accountancy, University of' Illinols 5 SIKICH.. IF Locationi Nopervilloo 1� P: 1(630) 566-8561 8 4 01 G 01 *1 1. naKI-119 MPA Se,n,lor Manager Gina, King, MPA, is a,seni'loriewidit manager at Siklch with exporience, atilditing a varlety of ltries Including gaviernmen'tal entities and not -for -prof it organizaltions., Specifically, Gina, spelcializiless In serving clommunity colleges,schooll districts, and vill'ag, es, $hoha, s workod in'the pudic aQc flno IndUstririce, 2011A and is, moron ible fr performling key audit procleclUres and intlernal control evaluations, roport pre para it'llori , and tl,w supervision Of aUdilfie-ldwork teams. Service areas Assurance and advisory, s,orv,icos Governrinental aUdit., accounting ■ Governmental financi,ra] in porting Nolt-'for-prolfilt audit, accolunting Affillat'lons 0 "Ill"indis CPA Society # 11111nois Government Finance Off icer's Associ,ation, Edulcation Bachlolor"s- Delgree In ACCOLire 't"inn, Illinois Statetjniversity ilItirverSity Masto, r of Pro�fca�ss�ona,Acco�Lit'lancy,ll,ii's n" 'Ino�e UI SIKICH� Location: NAPOM110,1L P: + 1(630) 566-8518 F; C vl, -A Sen"loir Managei- LgUren E. Allen, CPA,, Is a, sentor audit manager with In-depth expertence provid, ing asSUrance, and advis,ory oxperioris. LaLlrenfocusas on serving governmontal, entltles� S' uch as villages, and townships. She also works with oortain ri,on-prlofft entities, "mch 9, SCOMMUllity C011eges, Iiiiauren is, respons aQ I a dit lengagernents, supervising the audit team, and preparing and reviewing, financlial statements., Service iareas, F Asm,,irance & acivilroory servicles, m Audit 1& financial roporting services ml Govornmenta, I audit� aCcounting Affillations, v Illiriois CPA Society 0 Arnericiaan Institute of Certified PL.iiblI ic.A,CCOL,Itl�lt,at,'I'li Government inn, ncm Office,rs,,A,�TM iI tion Edwatilon Bachelor s, Degree In Acrounting, North Central College Associale's Degroe in Businioss, WaLlbotlltsew Cot",nmunity Colloge 5 SIKICH. a Lo my cation., Naperville, U + 111331) 229-5465 orn Niwana Becker Manager N Iwana Becker Is, an au dit manager at -SSJ kirh, wl 'th expe, rienice atidit'Ing a variety of' Industries, including governmental on -titles and not -for-prof It organizations. Spo,cifically, NIwana, specializes In serving commkimity ciollleqo�,, ,and municipalitles., She has worked in 011ie public, accounting Industry sliic�o 2019 and perforims, kely, aludit procedures and. Internzal, control avalluations, re, rid pillivipar ation, ands ,sip III rvll,5-os audit f ie I cl wo r 1 ea im 9, Serv'ice ia,reas Assurance a,nd, advusory servicies, Governmental audit, aocounting, Grovornmontal finanoial reporting Not -for -profit auclit,, accounting Affifliations H 11114,)ois Government Financial Otficlows,, Association Bac[ielor's Dlogtive infig Tmance 111�l�inoisSitalt,,eitJnilvelt,,,91,,ty, ,, Accolunt" & SIKICH, avio n J'a ies R S IN I ( ,�'A, M A �S P , 7o Principa jarnes P. savio, CPA, MIAS,, Is responsible for, piroviding �technic�al servilicies, to Sikichilis entail clients In all ,,krw )fqol�v�ornm,,ein,t,ala,c�c,olurilt,inigiiaudi't'in�g,,,fit,,ianciaI got lvernmi ' n �' go yie nt i J rn reporting revonue and expendil ture forecastlng,i and cash and deb,t mas a r has pa'rtidpated In 111ilLindrieds Of aUdits, of municipalitlies andother gloverilirin ' ental Uni,ts ln 1995 since lv began his career with $'IlkilllI, Hie has also bleen responsible "for Lolic,atlow developing and serving gi,s lead ire structor,for goy ernmentcal accownting, III, uditingo, finanicial reporting, and ciash mianagement coki,irses, both internally and Y t rnr lly. Napervilla, 111 + Jim serves, on tIhe Illinois ()overnment, rinancke Officers Assoc [at i on's Technical h g9m, Accounting, Review Committar d t1lie'Rinois CPA Socibty' 0- ov�e, runiantal Executive Comr,nittee., Hie also serves as: a, comi-nittoo mornk)erfor S"kich's menitoring program and assists in'the clovelopment, and 'Amplementation, of Sitch's new Wrio training prolgram. Se rvio, le areas Government'al aiudit,,, accouln'tinig GIm iertiti,itiltlitail,f'inancia,I reporting Affillat,ions, leI Arnierican It"IStItUte Of CO3 111150d Public Accountants a III[nois CPA Society, Glove rnmont,oal Executive Committee 0 Illinois Gaven,imen't Finance Officers Association, Tiechnical Accounting R,oview Committee F Greater Aurora Cha, mbe r of Corimerce Leadership Academy I Education 1101 Mast",er of'Sclence, Accou,ntinig, Nortfiorn Illinois University Bachelor, s De,greje,, Accounting, Northc'))rn Iffir"i,ols Will versity 5 SIKICH.l Napvilloo UL Milwaukee, Wl St, Louis, MO P1 +, 1(630) 566-8574 F; + j,(630), 499-8668 io 4! Pu ithon.ly M,. Cery I'll I CPA,,, CFE, Principal, li.ocal Governmeml Audit Leader Anthony M, C"PA, CFE", is at principal at Sikicl-i and serves as, O'ie, firt"I'lli S" Local C)()v,t,sr,ti�niet,,i'tLid,i't Leader. Since.joining SAlch in 200,151, Afitluxwl 1-,ias IIed LIH'igagemerat teams, for audits, of governmental, deli ve�lrig �xpert gUldance ijri, governmential acclotin'ting, auditing, �,(.spot ,ltin,gj, o1nd internal controls. Anthony is a recognized insfruit ior in thiedd, havirligt led iri(,in'le rous clourn es, on governiniental accotinting, finlar)dal repiorting, and iriternal controlc-ros.,.',sthe ("' CAI untry, 1-leo is an activie mernber of tilie Goverrinrier-lit Fjni,�pj(,e Officers Association (GFOA)l Spelicial Review Comn-flttloe, farlid tlll)lelllllr��,wis CP,A, Societys Government Report Review Comolittee. Service areas IN Governniienlal audit, 4 Govertimleti,tal financial ji-elporting Affiliations Atr,prJc;a.r,) ltl).stitute of'Certified PUblic Alcco,untarlts' m Illinois CIPA Socil�ty Governmer-A Report, i e ifs W C"orntit ittee Chairperson, (2021-202.3) (, AAP N,.)sis Reporting, Subl,,Ch,air (20,18-21020) 11kools Fig tianice Officlers, Ass,ociatiors, Wisc.-onsirt Government Finanicle Offilclers Assoclatilo, Ill (,-iFOA Special Review, Committee NapervilleAre a 111"kimaine Society (2010-20,17, (11?Oge COL111ty Walk, to Elncl Alzil-ieimer's., Executive, ILeaderslliip Committlee - Chair (2024-2 025) North Clentral College .., School iof Busire lessanti , Adivits ory iBioard (2024-presient) Education bachellorls ()(-gree ki Accountitig,jhie Univer-sity of, Iowa Master of Adiiiinistration, ,,, BetieAli ctin e Ur- iiversily w Golvernment agle. nciess eixperence increasibig preSSUrie, -to be more effective, efficient and transparent', As a govornrivr)it leiullorf YO(A know 1"llow irnportant, it is to, find' profiessic-stici,1 services part nerthat, ,, (.) 11, 11 i,7,,. a, t i o n cati strategize, plan arid irriplement t(,,) tl'te pa'Is"of Your" ol Services Stakicli, prolvidcts, R'll m ta m IT'services Acc,ot,jr)flnq@,, audit, ass(ijry c(,. x Buisiness valtiatioir) a Marketiri,g & C011,1111LInicat ions Fr a i (i �! t, v i c! e s fo, r q, o 1 v e r n n, i e t i Us, a Pension ftind accounting a ERP & CRM staftware es & 10011SUlting servic a Retirenient planning Wf)ether YOLI represent a generall pLirpiose local governmilent or special district, Sikik"09f"i will 1wip, yoo rtiaet your goal by pr�oviidjflg profiessiorial gLOdanice in ym,.v- accotmAirig, u I .m -'r � � y r and othier advisory fL111GO01115, Experience unparalleted commiftmeiit and high-qualfty, tirnellys, ervicos M'wri you j' lor with, the experts at,8ikich, Foil— n-mre tliiz.m i '30 year's,'we, haw.?, 1),F(1)vId,e(,,j; m A highly skilled staff and n,,iianaigernerit tearyi eritirely (11F (11c; a,,� tIo (.�')IPIAII( v An in-diepth Ll ndierstanid "Ing of the fiscal, r"Tltaviao )[Alt operating cand regLflatory erwiroru!,ior'its Tii I I'very, -nely ancl cost--ef fecflve SO,,rvf1(.;e (.-ieli Wil'o we serve c"llents pf"Oser)t a. wide range of indUSIT-Y sector, in,ClUding', III it hti ill M Foi w t preserve districts Cities Nil. )rcariierl V i 11 ag 0 s" Towriships, c'fk;'tr,ictS Other specia.1 a water at'.1thorities ml w"I ,,i Icts P le ns 1 ol rl a mL ater, rec,.1,aniz tioti �disti, �f Park districts t R 111.11.01l 'Y(��)vernrinent WJ x lIez ler Aritlu�)ny CPA,CFE PRINCIPAL 1, Q) 566 85 n �t [-i� o r'iy c e, iv i in i @1 s i k i ic h. c o i-n ............. . ................ ...... . ....... W11 ch? ixct 1<1, 'i' 1, 1111y Silem"'IRIP-1, LS j W(.)rks wil],i ur)it" of like, yot,irs to providle [�l ed 1) yo t"I flot"; ("I(N) 11 f I 1 11.1111 Y 0 U 1"' wl-,iile wetiake care of .................. . . .. . .01:01. m M experts, N 1 k' 13 C PA, MA S /%Ilflil ImV Iur rp Vicloria DAH051, CPA PRINCIPAL P13INCI(IAL PRINCIPAL +1 (630) 21G ),9 2, +'1 (2,17) BE32-1743 1 (314) 50 - 0-2407 ni ck bava@,sch,com a )sikj(� A I'l 1"I A, c (I (1"); 0 S @ 1111(isr 17011II)PA .e I S , Nd, t t 0 1" (10 ,G PAM 13 A " P, M JLI 11 VCA8 A PRI N, CIPAL PRINCIPAL PRINCIPAL Al (6�,�O) 566-8518 fit'i(Isey.fish @ silk, ich,cani n ila t t, r(J -0 si ki o h, o, rri [J,J(�ISCPA J' i r1l, S a N* io, C PA, M AS l'()Vtel-,, CI)A PRINCIPAL '27,-1, I( 1) 86 224 (16 6"'10') 8is'u f"I 1 J. I u c �i s @ s i k j'c h. c, o in NNj'jk(-,- WHbOUTIS, CPA, PRINCIPAL, 114.1 G7314) 590-24,01 mike.willian, i s' @,, sikich cloin rvi, Sivvickl, CPA R E ('�� IfO R 'I iALLI-O f301)1111d, CPA,,MAS. DIRECTOR "1 (6' , -3 0) 56" 6 lailriaJmbgal a@sikichi,cofi"'l Keflon, CPA, (I'(PECTOR (1630) 210-3083 o (L 20126 SkIch LLC',, An lf"Zigrin,; [ZrJser'Ived. info@sikilch.00rn 1 +1 (877') 279-o'1900 SNAM at apDoao hi acwwrowpOdi I Ma AICPA I 1&'af kc-I Sikich, (.33)A I 1 (3, h.', q�i N�(*� lsoiJ ("IIA fln, 11 �l ��l flpll'(�)Vicicln MI it '�'l "'I I tic��' �tt� clOth, Opki Wfuh LLC and OS subsklahes pryvie tox and �t�lvv;lnry i (,"PA I.L(".' hpq a qqnVncwml aunnijament MW Mch LLC under wMA Mich LLC suppw 01, �1151141�1,,��I'�, ()PA of its S(lrvk':(,n; SIN LLC sod fl'cP lot" (];PA, firrw.;. "Sikkdill' k, O"Wand name urulef Mich 1AW" OM LLT; ano SAwh I W pmvWn prArpskmal ll-le cnil"&U%; ��v)d(�f Ole aNjuponlanOy ownpd am! nFe rml HaWe hy the way,es pavoed by any owr pnldV prnvrhng *crvilci'n; I iru'lc�r t he SABOYahch MUM! the WPM "OLWOOnpm, w" and in- and oHwr $wmhr humzdammu I at 00�0 H-,arld 1;4�rcji US We help organizations manage 65"kii, mmadinthin compliance and, � the most of their technology investments. Sikich offrs, the public and privatei Sec -tors, af" COUvel-'se (')�jatfot,j,j,) of profession�il services across C011SUIting, telchi-icology and clompharic;e, Hl�'.,,)Iifly speoflahziaid arid "oii,i teams deli'vei- intelgrated solutillens rooted in deep, irldUstry expel-'ie" II Oor, a, p proac.;h ills' s,trategicail y and thOLIghtfUll'y designed, to help OLH' clients, towl-1.9 and oorrri-iiunitles w"O'cief"et"alte SUC;0068!� $Jkich has approxii7nately 2,,5""'100 teaiTi mom bei--s and operates acro f,.;s Noi-'t l'i A r1y)erica, E M E A at"id A PAC. Specia"111zed, servi''CICS Risk man,agelmorit, Enterprise a,pplicatim consulting Gybersoc;titrity Data and Al vila,,,I(Ita�jo, ns EPR Cl"W, Hl,("IM arjd soxvit',"09 rif,,,k and compliance (-',egLillatory, (JRJ,afltyalld Transact ion advisory (deals) Cornphanco Seirvices Business process, solutiorts, IN it a o AUd F I ti a n (1., e, a 1") d 010 L1 n ti n g s e r vi i C e s MI IT (,a, o n it r o II's ,ecurity nianaged services, IT -;itxj s di Ta; x is, e � ry i ce s Marketing atid comrnUnications Nilic"I'le experit"I'Se Sikich providies, sler ices and 861100118 t() 8, WIWO Of indt'isti"ie We have devoted SLibstantial ari(lexperiencein, Manufacturing Prilivate eqt-tlty Government Distribution & High-tech Nonprofit SUPPly' c�hain, Proifoessional Sorvioms Higher edUcatilon IIW00 AM ConStli"LliCtion & Agricuiture, real estate Automotive Ufo ssolenoos, 0 # I I �i ple"MUng pri,napies W provl(,Jerl,q tmcawse we 11i,ave tine rigtit people backiecAby e're t he right p lint (0 rit"T"t, End to eind! oxpairfiso Paftnersln finpact: ,h aoid hinovation VIR, Full access, no ogo Cutting: eidgle �tec Uncompromising problem rsolvers, 6.1 SIKICH8 IM'' ijp1 Net proinoter scW 'T'1,11)o fitrn-ii`s overall Net Promoter (NPS) is'79, his is a, O`fOLjr' chents' wiflingurn esis, to t,'ec,.omirniend Sikich"s setwices and prodUcts. An NPS of M1181, is cof-,isidered world-cliass', ........... . ..... ..... . ..... . ......... .. .................. ................. mi immil m ..... ............. % m ■% In m a a win % .. ................ . ............... . . Office'locatiOns Aftmedabad',, OJ I L chicagio r I Los Angeles, GA Atexandria, VA (3,12) 6348-6666 ,d +1 (8"(7)2`791-1900 11,11,10111 1 1 ('702) 8303-1�50 Clieveliand , 0,H Milwaukee,V1 +1 (703) 836-6701 hf'.1 (330) 8 0714- 6 6, 1 +1 (262) 754-94,00 Sangalore, KA Coinibiatore,'T'N INaplite, XL Bost,on, MA Decatur, IL "j-1 (50,8) 4851,,-5,5838, 2 4-1(2117' 4' 3-60,00 Peoria,, I'L Chattaneoliga, TN Indlanapolls, IN! .4-1 (309) 694-4251 1+1 (423),9mod' 4-3007 111+,11 (317) 842-14461(3 "Perfdrrri . ..... ..... . . Princeton, NJ 11.1 (609), 2118,5­5000 h[s Sikic, ls,,a tine, r of'Prirneo' Jobal., R oill1 ckv%, MD a 1,1 a,wal �,(j 1111- w i nn i rig association of lli��ilidepen,tAont�lio,�e,ounting and �+.1 (301)738-19,041 il b,tzo,wss a(:ivisory firrns.'With over Springfield',11. 10,00 loications in'112 COUntr I i,es, +1 (2,117) 7II MIIMI'9" 3, 6 3 Pirit,,T*Global is,, firmly lestablishied St. Louis,, MO as tj,vot,()j.) a.ssod,,,,-xtion worldwide, +1 (314)� 275,2172WI, "17 1r) terrns f dilverse ii -each and widespread, coverage, Certificatilons, & awards 6 Rao,() to WorkO U.S. and,llndia A(.'xt,.)1kAn,Vr'1ig 'rc,)(j,Ry'VA,,R'Top'100 R a., riik c�,ocl # 8 Be st Wo r k P 1, ac e imp Chit c ag o by Noii,fli America SOIL[ ti,0111 P11-ovider R,�)t.,tijilie nwAgazine P ap rt 11) O"r, r Vt II, Hmii(,,,h;Ill arly'Talent Award MSSP Alwr't Top 250 MSSPs 10 "72, S IN Ranked #2.' in 1PA 11"Op 600 Riibk."�,iest, Pla,c�e to Work, Cratlr'i S 1, jo Bt'js'%j'I Healtli--iie?,.;t Empfoyersll H"i 111W'iIoi,-s Jt-ld'liarlaf New AcCOLUITtilIg rif-111S Jersey, Ohlio, Virg ilfrl)a av)(11 Wisc"Onsirl 11, AcCOUITtIlIg fod.. ay tin, p f I 1') �"A 1 PMaril r1-11 i ng" I f'i 1-! 111 s by siets k.i'ii-ider rrimaigilerTwnt ('$'1F,3..i- AUM) Military for Vets E:inployer a,s N 9 USATODAY OS biteWin'ter Alliance Raii-tner, S"IDOINgl-Its (S'Aiat:isstals 1111st of "'America's Moist Award in Biotecl'i and Biopharr-na, li""�iecmrnn-�i oride., d "fa & A coot,,ir)ti rig Firins"' di Advisoir,An,-ierica's Fbp [M,IA 10 QRN Solution Provider 510C) list, 01 CRN ManagedService, Provider 510('.) 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All r(gh ts re s or void IT" I K 201 91, ('a 1/1 M up ll/wIll'All/ IP , OR ip/ 7311111 g Villa e of Mount Prospect mmint Mount Prospect, Illinois INTEROFFICE MEMORANDUM TO: VILLAGE PRESIDENT AND BOARD OF TRUSTEES FROM: AUDIT COMMITTEE DATE: AUGUST 271 2026 SUBJECT: 5-YEAR AUDIT E NAGAG E M E NT FOR 2026-2030 The Audit Committee was convened to review proposals and recommend the Village's external auditor for a five-year engagement covering fiscal years 2026 through 2030. The Audit Committee meeting was held on August 20, 2026, at 6:00 p.m. at Village Hall. Audit Committee Chair Vince Grochocinski, Trustee William Grossi, Trustee John Matuszak, and Audit Committee Member Tim McDermott were present. Director of Finance Amit Thakkar and Deputy Director of Finance Jenny Fitzgerald also attended on behalf of Village staff. Request forProposals The Village issued a Request for Proposals (RFP) for external auditing services in May 2026. The Village received two responses: one from the Village's current auditor, Lauterbach & Amen, LLP, and the second from Sikich LLP. The proposals were reviewed based on qualifications, experience, audit approach, staffing, service capabilities, and cost. A summary of the cost proposals is provided below. AFR Report ILibrary ikih ff 50,000 52,500, 7,800 60,700 276,200,' 40,800 42,800 44,900 47,100 214,500 2,000 2,050 2,11517 , 10,590 1 1,100 1 1 1 5,500 5,600,? ,950 6,200 29,000- - - - - - 1 1,050 1,100 1,155 1,210 , 1 - - - - - - 1 , U U 1 , , � 1 ,1 U 1 , 1 i U U , , 1 �" , ,,,� � ��� 4� IIMIIM 118,450)I ,�� � �w. �� m� , , II31" i '�� '� [ � 4 m� ,,), m� I) � �� 4' ��I � i �I)M III) � ��'� I �u` � 0�"Y, ��5,121 µ �� 8,500 8,950, , 10,200 , 7,200 °,600 8,000 8,400 Representatives from both firms attended the Audit Committee meeting and were interviewed by the Committee. Following its review and discussion, the Audit Committee made the following findings: Annual Report of Audit Committee August 20, 2026 Page 2 Qualifications and. Experience Both firms are well -established, reputable firms with significant experience providing audit services to governmental entities. The proposed audit partners, principals, managers, and professional staff possess the educational background, professional certifications, governmental auditing experience, and technical expertise necessary to perform the Village's annual audit and related services. The Audit Committee found both firms to be highly qualified and capable of providing quality audit services. Overall, the firms were generally comparable in terms of professional qualifications and expected service standards. Scope of Work and. Cost Lauterbach & Amen proposed approximately 315 hours of audit work annually, while Sikich proposed approximately 350 hours annually. From a cost perspective, Lauterbach & Amen's proposal totaled $247,100 for the five-year engagement, representing an effective hourly rate of approximately $156.89. Sikich's proposal totaled $342,735 for the five-year engagement, representing an effective hourly rate of approximately $195.85. Accordingly, Lauterbach & Amen's proposal was approximately $95,635 less than Sikich's proposal over the five-year engagement period. Auditor t . ��� . The Village of Mount Prospect has historically rotated its external auditors. This practice has been followed voluntarily by the Village for decades and has been supported by the Village Board, although no formal policy currently requires auditor rotation. Lauterbach & Amen has served as the Village's external auditor for the past six years. Representatives of Lauterbach & Amen explained that, if selected for another engagement, the firm would assign a substantially different audit team to the Village. The Audit Committee discussed this approach and asked several questions regarding how changes in audit personnel could promote independence and provide a fresh perspective while maintaining the institutional knowledge developed by the firm. The Lauterbach & Amen representatives provided responses to the Committee's questions. After consideration, however, the Audit Committee concluded that rotating to a new audit firm would provide greater benefits than changing personnel within the existing audit firm. Audit Approach. and. Overall [�`!.valuat "ion The Audit Committee discussed various aspects of the audit process with both firms, including audit planning, staffing, communication with management and the Audit Committee, use of technology, internal control review, and the overall audit approach. Both firms provided satisfactory and responsive answers to the Committee's questions. Although Sikich's proposed audit approach was not materially different from that of Lauterbach & Amen, the Audit Committee unanimously recommended awarding the next five-year audit engagement to Sikich for the reasons described below. Benefits of.period.i.c.Auditor Rotation. The Audit Committee believes that periodically rotating the Village's external audit firm strengthens independence and provides an important governance benefit. A long-term relationship between an Annual Report of Audit Committee August 20, 2026 Page 3 auditor and an organization can create familiarity that may affect, or create the appearance of affecting, the auditor's independence. A new audit firm brings a fresh and independent perspective and may be more likely to challenge long-standing assumptions, accounting practices, financial reporting processes, or internal controls. As a public entity responsible for the stewardship of taxpayer resources, the Village should also periodically evaluate professional services through a competitive and transparent process. Periodic auditor rotation promotes public confidence, strengthens accountability, and provides an opportunity to assess the Village's financial systems and internal controls from a new perspective. A new audit firm may also identify risks, inefficiencies, opportunities for improvement, or areas requiring additional attention that may have been overlooked simply because the same firm has reviewed the Village's operations and financial processes over an extended period. The Audit Committee believes that the benefits of a new and independent perspective outweigh the additional cost associated with Sikich's proposal. Technology gence �� . . . The Audit Committee also discussed developments in artificial intelligence and their potential impact on the auditing profession and the Village's future audit process. The Committee asked both firms about their use of technology and their expectations regarding the impact of Al on audit procedures and staffing requirements. Sikich indicated that it is willing to reevaluate the scope and cost of the audit engagement if significant technological or artificial intelligence developments materially change the audit process during the term of the engagement. Staff I'Zecommendati.on. Village staff concurs with the recommendation of the Audit Committee and supports the rotation of the Village's external audit firm. Staff believes that Sikich is well qualified to provide the required audit services and that selecting a new audit firm is consistent with the Village's long-standing practice of periodically rotating auditors. Recom.m.endatilon for a. Formal Auditor Rotatilon Policy The Audit Committee also recommends that the Village consider developing and formally adopting a policy addressing the periodic rotation or competitive procurement of external audit services. Currently, the Village's bylaws are silent regarding auditor rotation, and no formal policy governing the process exists. The Village has nevertheless voluntarily followed the practice of periodically rotating its external auditors for decades. A formal policy would provide greater clarity and consistency regarding the Village's expectations for auditor independence, the duration of audit engagements, the timing of competitive procurement processes, and the circumstances under which the incumbent firm may be eligible for reappointment. The policy should also provide appropriate flexibility in circumstances where requiring auditor rotation could result in a reduced quality of audit services due to a limited pool of qualified or responsive firms. In such cases, the policy could provide for an exception to the rotation or competitive procurement requirement and allow the Village to retain or reappoint a previous or incumbent audit firm when doing so is determined to be in the Village's best interest. Annual Report of Audit Committee August 20, 2026 Page 4 Audit Committee'Recommen.d.a.tion. Based on its review of the proposals, interviews with both firms, evaluation of qualifications and experience, consideration of the proposed audit approaches, discussion of auditor independence and rotation, and overall assessment of the Village's long-term interests, the Audit Committee (members present) unanimously recommends that the Village Board approve the selection of Sikich LLP as the Village's external auditor for a five-year engagement covering fiscal years 2026 through 2030. While Lauterbach & Amen submitted the lower -cost proposal and has provided quality services to the Village, the Audit Committee believes that the benefits of obtaining a new and independent perspective, consistent with the Village's long-standing practice of periodically rotating external auditors, support the selection of Sikich LLP for the next audit engagement. We are submitting this report to the Village Board on behalf of the Audit Committee with the recommendation to approve Sikich LLP for the five-year audit engagement. Please contact me if you have any questions or require additional information regarding this report, the selection process, or the activities and recommendation of the Audit Committee. Respectfully Submitted, Vince Grochocinski