R2023-254 Resolution Authorizing Professional Service Agreement with Sikich LLP for Auditing Services and Non-Audit Advisory Services

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SIKICH. SI KICH.COM Sikich's audit approach includes,but is not limited to,the following procedures: • Audit plan development ■ Determination of materiality ■ Audit risk evaluation • Interviews with management to provide information for detailed documentation of the internal control structure ■ Interviews and analysis of audit evidence to identify and assess risks that may result in material misstatement due to fraud • Measurement of accounting presentation and compliance reporting by identifying and focusing on areas sensitive to organizations like the City of Decatur ■ Performance of testing to evaluate your organization's internal control structure • Confirmation of various accounts,performance of substantive testing and analytical procedures ■ Performance of additional testing,as necessary PRACTICAL AND CONSTRUCTIVE MANAGEMENT LETTER COMMENTS We believe the management letter is an important part of the engagement,and we encourage all members of our engagement team to give thoughtful consideration toward developing constructive comments within the constraints of the overall engagement. Our policies regarding management letters adhere to the Professional Standards of the AICPA. If significant deficiencies and material weaknesses in internal controls are noted during the audit,they are required to be communicated in writing to those charged with governance. Items of an immaterial nature (i.e., clerical problems, minor procedures or reporting problems,etc.)are communicated to management.In both cases,we adhere to a strict firm policy that all comments and recommendations are discussed in preliminary form with appropriate personnel prior to their communication. This allows for clarification of misunderstandings,miscommunication or compensating controls or factors which may be in place. QUALITY CONTROL At Sikich,we are committed to providing the highest quality audits in the industry.The City of Decatur can be assured of receiving the highest level of quality and ethical professional services.Quality control is so important to us that our firm has been a member of the Private Companies Practice Section of the Division for CPA Firms of the AICPA since our formation in 1982.As such,we have voluntarily submitted our audit and accounting practice to quality control reviews of our compliance with professional standards as established by the AICPA and,more recently,by the United States Government Accountability Office,for more than 30 years.In 2023,we received our twelfth consecutive peer review unmodified("pass")report.This is the highest level of recognition conferred upon a public accounting firm for its quality control systems.Also,we go beyond the external reviews and maintain strong internal reviews of procedures and processes with oversight by our Quality Assurance Committee and our Partner-in-Charge of Quality Assurance.Please refer to the Exhibits section for a copy of our most recent peer review which included a review of specific government engagements since this accounts for a significant segment of our practice. In addition,our state and local government reports have been reviewed by numerous federal and state oversight bodies and professional organizations.These reports have been judged to meet and,in most instances,exceed industry standards and requirements. Sikich has not been the subject of any disciplinary action or inquiry during the past five years. Sikich is a member of the AICPA's Governmental Audit Quality Center (GAQC), which is a firm-based voluntary membership center designed to promote the importance of quality governmental audits and the value of these audits to purchasers of government audit services.As a member of the GAQC,Sikich has access to key information and comprehensive resources that we use to help ensure our compliance with appropriate professional standards and laws and regulations that affect our audits. Through our membership in the GAQC,we also adhere to membership requirements designed to enhance the quality of our audit practice. ACCOUNTING TECHNOLOGY ADVISORY City of Decatur Service Proposal 1 9