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

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SIKICK SIKICH.COM FEE PROPOSAL Our fees for the services included in the Scope of Services for the City of Decatur section will be billed at the following rate, plus out of pocket costs,for the fiscal years ending December 31: Optional Optional 2023 2024 2025 City Audit(A) $ 120,000 $ 126,000 $ 132,000 Mass Transit(B) $ 12,000 $ 9,000 $ 9,500 TIF Audits $ 8,000 $ 8,500 $ 9,000 Single Audit(C) $ 10,000 $ 10,500 $ 11,000 Start Up Costs* $ 30,000 $ - $ - Total Fee $ 180,000 $ 154,000 $ 161,500 *The 2023 fee above includes an estimate of$30,000 for one-time start-up costs. For multi-year engagements,we often absorb the one-time start up costs. Should the City elect to engage our firm for a multi-year contract,we will waive the $30,000 startup costs. The fees are based on City's responses to inquires,that the estimated hours are expected to be between 1,000-1,200 for the audit services included in the Scope of Services for the City of Decatur section. (A) The City audit fee includes preparation of the management letter,Illinois Comptroller's Annual Financial Report and GATA In-Relation-To opinion, if necessary; and assistance in completing and filing the required application and supporting documents to apply for the Certificate of Achievement for Excellence in Financial Reporting (B)The Mass Transit Program audit fee for 2023 includes the audits of the program years June 30,2022 and June 30,2023 (C)The fees for the Single Audit and are based on the assumption that major programs required to be tested under the Single Audit will not exceed one. If additional major programs are required to be tested that require additional time and effort,additional fees may be negotiated. These fees assume that the City of Decatur will provide the auditors with electronic copies of adjusted trial balances by individual funds,a year-to-date general ledger with details of postings to all accounts,subsidiary ledgers that agree or are reconciled to the general ledger,and will prepare certain schedules of account analysis and confirmations of account balances. The fees are based on an understanding that the City's organization structure and fund composition will not substantially change during the audit period and there are no major issues that we would encounter that have not been identified to date. The fees do not include the cost related to the implementation GASB 94 Public-Private and Public-Public Partnerships and Availability Payment Arrangements(effective December 31,2023),and GASB 96 Subscription-Based Information Technology Arrangement(effective December 31,2023)or the licensee costs for the GASB 96 tool,should the City elect to purchase. Fees to be negotiated separately upon determination of applicability. In accordance with Government Auditing Standards,if the City requires assistance with maintaining depreciation schedules, determining the year end accrual adjustment or any other additional services outside the scope of the audit,fees for these non-audit services would be billed at the following rates,subject to change each January 1. HOURLY RATES Effective January 1,2024 Partners $ 400 Director 350 Senior Managers 325 Managers 275 Senior Staff 205 Staff 185 We invoice our clients on a monthly basis as services are provided.Payments for all services are due within 60 days of receipt of an invoice.Invoices not paid within 60 days are assessed a finance charge of 1 percent per month(12 percent annually). ACCOUNTING TECHNOLOGY ADVISORY City of Decatur Service Proposal 1 18