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CITY OF WEST CHICAGO
Finance Committee
Agenda Item Summary
ITEM TITLE: AGENDANO. __+t.€.
Resolution No. 22-R-0016 — Audit Engagement Letter with Lauterbach | FILE NO.
& Amen, LLP for fiscal years ending December 31, 2022 through
December 31, 2024 COMMITTEE AGENDA DATE: February 24, 2022
COUNCIL AGENDA DATE: March 7, 2022
STAFF REVIEW: Linda M. Martin SIGNATURE
APPROVED BY CITY ADMINISTRATOR SIGNATURE_
ITEM SUMMARY:
With the completion of the annual audit for the fiscal year ended December 31, 2021, the term of the current four-year
engagement with Lauterbach & Amen, LLP will conclude. For each fiscal year that Lauterbach & Amen, LLP has audited the
City’s financial statements, the City has received the Certificate of Achievement for Excellence in Financial Reporting for its
annual report.
In October 2021, the Governmental Accounting Standards Board issued Statement No. 98, Annual Comprehensive Annual
Report (ACFR), officially changing the name comprehensive annual financial report to annual comprehensive financial report
and the acronym to ACFR (formerly CAFR). The Government Finance Officers Association (GFOA) has directed that any
reference to the report, as CAFR, be stopped immediately and refer to the report as “Annual Report” or ACFR. This policy
change is the result of a new understanding that the acronym CAFR mimics the pronunciation of a deeply derogatory term and
offensive racial slur often used in other parts of the world. GFOA has determined that there is a responsibility to act as part of
its commitment to diversity, equity and inclusion.
In order for an ACFR to be considered for the Certificate of Achievement award, the ACFR is evaluated by the GFOA -
Certificate of Achievement Program Special Review Committee. That Committee determines if the ACFR meets the program’s
high standards of financial reporting techniques, full disclosure and clear communication of financial position of the City, as
measured by seventeen grading categories for which a grade is determined. Each ACFR submitted during the most recent
four-year engagement with Lauterbach & Amen, LLP has received the highest grade available of “Proficient” for all seventeen
grading categories.
Attached for your review is the engagement letter from Lauterbach & Amen, LLP that confirms the understanding of audit
services to be provided for fiscal years ended December 31, 2022 through December 31, 2024, annual audit fees of $43,000,
$43,870 and $44,740, and single audit annual fees of $4,000, $4,080 and $4,160 for the respective three years. The fee for
auditing services for fiscal year ended December 31, 2021 is $43,000; no increase in annual fee is being proposed for fiscal
year December 31, 2022. Appropriate funds have been budgeted in the proposed three-year budget for fiscal years 2022,
2023 and 2024, and as presented within the attached engagement letter.
The City has had a good working relationship with Lauterbach & Amen, LLP, including technical assistance provided by
Lauterbach & Amen with regard to other accounting and intergovernmental agreement matters. Therefore, staff recommends
approval of the engagement letter with Lauterbach & Amen, LLP, as attached.
ACTIONS PROPOSED: Approve Resolution No.22-R-0016 authorizing the Mayor to sign a three-year Engagement Letter with
Lauterbach & Amen, LLP for annual audit and single audit services, beginning with Fiscal Year 2022.
COMMITTEE RECOMMENDATION:

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Lauterbach & Amen, LLP she
TED PUBLIC SC COL
December 1, 2021
The Honorable Mayor
Members of the City Council
City of West Chicago, Illinois
We are pleased to confirm our understanding of the services we are to provide the City of West Chicago,
Illinois for the years ended December 31, 2022, December 31, 2023, and December 31, 2024.
Audit Scope and Objectives
We will audit the financial statements of the governmental activities, the business-type activities, each major
fund, and the aggregate remaining fund information, and the disclosures, which collectively comprise the
basic financial statements of the City as of and for the years ended December 31, 2022, December 31, 2023,
and December 31, 2024. Accounting standards generally accepted in the United States of America (GAAS)
provide for certain required supplementary information (RSI), such as management’s discussion and analysis
(MD&A), to supplement the City’s basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. As part of our engagement, we will apply certain limited
procedures to the City’s RSI in accordance with GAAS. These limited procedures will consist of inquiries of
management regarding the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We will not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance. The following RSI is required by U.S. generally
accepted accounting principles (GAAP) and will be subjected to certain limited procedures but will not be
audited: management’s discussion and analysis, the budgetary comparison schedules, pension plan employer
contribution schedules, changes in the employer’s net pension liability schedules, pension plan investment
return schedules, and schedule of changes in employer’s total OPEB liability.
We have also been engaged to report on supplementary information other than RSI that accompanies the
City’s financial statements. We will subject the following supplementary information to the auditing
procedures applied in our audit of the financial statements and certain additional procedures, including
comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with GAAS, and will provide an opinion on it in relation to the financial
statements as a whole, in a report combined with our auditor’s report on the financial statements:
combining and individual fund statements and budgetary comparison schedules, and other information
listed as supplemental schedules.
In connection with our audit of the basic financial statements, we will read the following other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report: introductory and statistical information.

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City of West Chicago, Illinois
December 1, 2021
Page 2
Audit Scope and Objectives — Continued
The objectives of our audit are to obtain reasonable assurance as to whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error; issue an auditor’s report that
includes our opinion about whether your financial statements are fairly presented, in all material respects, in
conformity with GAAP; and report on the fairness of the supplementary information referred to in the second
paragraph when considered in relation to the financial statements as a whole. Reasonable assurance is a high
level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS will always detect a material misstatement when it exists. Misstatements, including
omissions, can arise from fraud or error and are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment of a reasonable user made based on the
financial statements.
Auditor’s Responsibilities for the Audit of the Financial Statements
We will conduct our audit in accordance with GAAS and will include tests of your accounting records and
other procedures we consider necessary to enable us to express such opinions. As part of an audit in
accordance with GAAS, we exercise professional judgment and maintain professional skepticism throughout
the audit.
We will evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management. We will also evaluate the overall presentation of the financial
statements, including the disclosures, and determine whether the financial statements represent the underlying
transactions and events in a manner that achieves fair presentation. We will plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement, whether
from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or
governmental regulations that are attributable to the government or to acts by management or employees
acting on behalf of the government.
Because of the inherent limitations of an audit, combined with the inherent limitations of internal control, and
because we will not perform a detailed examination of all transactions, there is an unavoidable risk that some
material misstatements may not be detected by us, even though the audit is properly planned and performed
accordance with GAAS. In addition, an audit is not designed to detect immaterial misstatement, or violations
of laws or governmental regulations that do not have a direct and material effect on the financial statements.
However, we will inform the appropriate level of management of any material errors, fraudulent financial
reporting, or misappropriation of assets that come to our attention. We will also inform the appropriate level
of management of any violations of laws or governmental regulations that come to our attention, unless
clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does
not extend to any later periods for which we are not engaged as auditors.
We will also conclude, based on the audit evidence obtained, whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the government’s ability to continue as a going
concern for a reasonable period of time.

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City of West Chicago, Illinois
December 1, 2021
Page 3
Auditor’s Responsibilities for the Audit of the Financial Statements — Continued
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, include tests of the physical existence of inventories, and direct confirmation of receivables and
certain assets and liabilities by correspondence with selected customers, creditors, and financial institutions.
We will also request written representations from your attorneys as part of the engagement, and they may bill
you for responding to this inquiry.
Audit Procedures — Internal Control
We will obtain an understanding of the City and its environment, including internal control relevant to the
audit, sufficient to identify and assess the risks of material misstatement of the financial statements, whether
due to error or fraud, and to design and perform audit procedures responsive to those risks and obtain evidence
that is sufficient and appropriate to provide a basis for our opinions. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. An audit is not designed
to provide assurance on internal control or to identify deficiencies in internal control. Accordingly, we will
express no such opinion. However, during the audit, we will communicate to management and those charged
with governance internal control related matters that are required to be communicated under AICPA
professional standards.
Audit Procedures — Compliance
As part of obtaining reasonable assurance about whether the financial statements are free of material
misstatement, we will perform tests of the City’s compliance with the provisions of applicable laws,
regulations, contracts, and agreements. However, the objective of our audit will not be to provide an
opinion on overall compliance, and we will not express such an opinion.
Other Services
We will also assist in preparing the financial statements and required audit adjustments, if any, for the City
in conformity with accounting principles generally accepted in the United States of America based on
information provided by you. We will perform these services in accordance with applicable professional
standards. The other services are limited to the financial statements previously defined. We, in our sole
professional judgement, reserve the right to refuse to perform any procedure or take any action that could be
construed as assuming management responsibilities.
Responsibilities of Management for the Financial Statements
Our audit will be conducted on the basis that you acknowledge and understand your responsibility for
designing, implementing, and maintaining internal controls relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error,
including monitoring ongoing activities; for the selection and application of accounting principles; and
for the preparation. and fair presentation of the financial statements in conformity with accounting
principles generally accepted in the United States of America.

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City of West Chicago, Illinois
December 1, 2021
Page 4
Responsibilities of Management for the Financial Statements - Continued
Management is responsible for making all financial records and related information available to us and
for the accuracy and completeness of that information (including information from outside of the general
and subsidiary ledgers). You are also responsible for providing us with (1) access to all information of
which you are aware that is relevant to the preparation and fair presentation of the financial statements,
such as records, documentation, identification of all related parties and all related-party relationships and
transactions, and other matters; (2) additional information that we may request for the purpose of the audit;
and (3) unrestricted access to persons within the government from whom we determine it necessary to
obtain audit evidence. At the conclusion of our audit, we will require certain written representations from
you about the financial statements and related matters.
Your responsibilities include adjusting the financial statements to correct material misstatements and
confirming to us in the management representation letter that the effects of any uncorrected misstatements
aggregated by us during the current engagement and pertaining to the latest period presented are
immaterial, both individually and in the aggregate, to the financial statements of each opinion unit taken
as a whole.
You are responsible for the design and implementation of programs and controls to prevent and detect
fraud, and for informing us about all known or suspected fraud affecting the government involving (1)
management, (2) employees who have significant roles in internal control, and (3) others where the fraud
could have a material effect on the financial statements. Your responsibilities include informing us of your
knowledge of any allegations of fraud or suspected fraud affecting the government received in
communications from employees, former employees, grantors, regulators, or others. In addition, you are
responsible for identifying and ensuring that the government complies with applicable laws and
regulations.
You are responsible for the preparation of the supplementary information in conformity accounting
principles generally accepted in the United States of America. You agree to include our report on, the
supplementary information in any document that contains, and indicates that we have reported on the
supplementary information. You also agree to make the audited financial statements readily available to
users of the supplementary information no later than the date the supplementary information is issued with
our report thereon. Your responsibilities include acknowledging to us in the representation letter that (1)
you are responsible for presentation of the supplementary information in accordance with GAAP; (2) you
believe the supplementary information, including its form and content, is fairly presented in accordance
with GAAP; (3) the methods of measurement or presentation have not changed from those used in the
prior period (or, if they have changed, the reasons for such changes); and (4) you have disclosed to us any
significant assumptions or interpretations underlying the measurement or presentation of the
supplementary information.
You agree to assume all management responsibilities for the financial statement preparation services and
any other nonattest services we provide; oversee the services by designating an individual, preferably from
senior management, with suitable skill, knowledge, or experience; evaluate the adequacy and results of
the services; and accept responsibility for them.

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City of West Chicago, Illinois
December 1, 2021
Page 5
Engagement Administration, Fees, and Other
Our fees for the December 31, 2022, December 31, 2023, and December 31, 2024 audits will be as follows:
December 31, 2022 December 31, 2023 December 31, 2024
$43,000 $43,870 $44,740
Single Audit
The City agrees that during the term of this agreement and for a period of twelve months thereafter, the
City shall not solicit, or arrange an employment contract with personnel of Lauterbach & Amen, LLP.
Violation of this provision shall, in addition to other relief, require the City to compensate Lauterbach &
Amen, LLP with one hundred percent of the solicited person’s annual compensation.
Reporting
We will issue a written report upon completion of our audit of the City’s financial statements. Our report will
be addressed to the City Council of the City. We cannot provide assurance that unmodified opinions will be
expressed. Circumstances may arise in which our report may differ from its expected form and content based
on the results of our audit. Depending on the nature of these circumstances, it may be necessary for us to
modify our opinions or add an emphasis-of-matter or other-matter paragraph to our auditor’s report, or if
necessary, withdraw from this engagement. If our opinions are other than unmodified, we will discuss the
reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or
have not formed opinions, we may decline to express opinions or withdraw from this engagement.
We appreciate the opportunity to be of service to the City of West Chicago, Illinois and believe this letter
accurately summarizes the significant terms of our engagement. If you have any questions, please let us know.
If you agree with the terms of our engagement as described in this letter, please sign below, and return it to
us.
Cordially,
Lauterbach & Amen, LLP
LAUTERBACH & AMEN, LLP
RESPONSE:
This letter correctly sets forth the understanding of the City of West Chicago, Illinois.
By:
Title:

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RESOLUTION NO. 22-R-0016
A RESOLUTION AUTHORIZING THE MAYOR TO SIGN
AN ENGAGEMENT LETTER WITH LAUTERBACH & AMEN, LLP
FOR PROFESSIONAL AUDIT SERVICES FOR
FISCAL YEAR 2022 THROUGH 2024
BE IT RESOLVED by the City Council of the City of West Chicago, in
regular session assembled, that the Mayor is hereby authorized to sign an Engagement
Letter with Lauterbach & Amen, LLP, for the purpose of auditing the basic financial
statements of the City of West Chicago for the Fiscal Years ending December 31, 2022
through December 31, 2024, in substantially the form attached hereto and incorporated
herein as Exhibit “A”.
ADOPTED this 7" day of March 2022.
AYES:
NAYES:
ABSTAIN:
ABSENT:
Mayor Ruben Pineda
ATTEST:
Interim City Clerk Valeria Perez