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CITY OF WEST CHICAGO
FINANCE COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDA ITEMNUMBER: — ¢-D.
Resolution No. 25-R-0022 — Audit Engagement Letter with
Lauterbach & Amen, LLP for fiscal years ending
December 31, 2025 through December 31, 2027 COMMITTEE AGENDA DATE: March 3, 2025
COUNCIL AGENDA DATE: March 3, 2025
FILE NUMBER:
STAFF REVIEW: Nikki Giles SIGNATURE Gan Whe G a
APPROVED BY CITY ADMINISTRATOR: SIGNATURE.
ITEM SUMMARY:
With the completion of the annual audit for the fiscal year ended December 31, 2024, the term of the current three-
year engagement with Lauterbach & Amen, LLP will conclude. 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
ending December 31, 2025 through December 31, 2027, annual audit fees of $45,000, $46,800 and $48,600, and
single audit fees of $5,200, $5,400 and $5,600 for the respective three years. Appropriate funds have been
budgeted in the proposed three-year budget for fiscal years 2025, 2026 and 2027, 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. 25-R-0022 authorizing the Mayor to sign a three-year Engagement Letter with
Lauterbach & Amen, LLC for annual audit and single audit services, beginning with fiscal year 2025.
COMMITTEE RECOMMENDATION:
This item is being presented to the Finance Committee on March 3, 2025.

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RESOLUTION NO. 25-R-0022
A RESOLUTION AUTHORIZING THE MAYOR TO SIGN
AN ENGAGEMENT LETTER WITH LAUTERBACH & AMEN, LLP
FOR PROFESSIONAL AUDIT SERVICES FOR
FISCAL YEAR 2025 THROUGH 2027
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, 2025
through December 31, 2027, in substantially the form attached hereto and incorporated
herein as Exhibit “A”.
APPROVED this 3rd day of March 2025.
AYES:
NAYES:
ABSTAIN:
ABSENT:
Mayor Ruben Pineda
ATTEST:
Valeria Perez, Executive Office Manager

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668 N. RIVER ROAD + NAPERVILLE, ILLINOIS 60563
| / \ Lauterbach & Amen, LLP PHONE 630.393.1483 - FAX 630.393.2516
wlaut
CERTIFIED PUBLIC ACCOUNTANTS wwwlautersachamen.com
January 19, 2025
Honorable Mayor
Members of the City Council
City of West Chicago
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, 2025, December 31, 2026, and December 31, 2027.
Audit Scope and Objectives
We will audit the financial statements of the governmental activities, 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, 2025, December 31, 2026, and
December 31, 2027. Accounting standards generally accepted in the United States of America (GAAP)
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 auditing standards generally accepted in the United States of
America (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 GAAP and will be subjected to certain limited procedures, but
will not be audited: management's discussion and analysis, the budgetary comparison schedules, GASB-
required pension reporting and GASB-required other post-employment benefit (OPEB) reporting.
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 we 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 fund statements, individual fund statements, budgetary comparison schedules and other
information 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.
City of West Chicago
January 19, 2025 Page | of 6

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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 City or to acts by management or employees acting on
behalf of the City.
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 or noncompliance may not be detected by us, even though the audit is properly
planned and performed in accordance with GAAS. In addition, an audit is not designed to detect immaterial
misstatements 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, any 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 City’s ability to continue as a going concern
for a reasonable period of time.
Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, tests of the physical existence of inventories, if applicable, 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.
Our audit of the financial statements does not relieve you of your responsibilities.
City of West Chicago
January 19, 2025 Page 2 of 6

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Audit Procedures — Internal Control
Our audit will include obtaining an understanding of the City and its environment, including the system of
internal control, 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, misrepresentation, 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.
We have identified the following significant risks of material misstatement as part of our audit planning:
management override of controls, improper revenue recognition, and general or local economic challenges.
Planning for this engagement has not concluded and is subject to change.
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 statement services 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.
You agree to assume all management responsibilities for the financial statement preparation services, and
required audit adjustments, if any, 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 those services; and accept responsibility for them.
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 with the oversight of those charged with
governance.
City of West Chicago
January 19, 2025 Page 3 of 6

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Responsibilities of Management for the Financial Statements - Continued
Management is responsible for making drafts of financial statements, all financial records and related
information available to us; for the accuracy and completeness of that information (including information
from outside of the general and subsidiary ledgers); and for the evaluation of whether there are any
conditions or events, considered in the aggregate, that raise substantial doubt about the government’s
ability to continue as a going concern for the 12 months after the financial statements date or shortly
thereafter (for example, within an additional three months if currently known). 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 City 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 with accounting
principles generally accepted in the United States of America (GAAP). 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.
City of West Chicago
January 19, 2025 Page 4 of 6

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Engagement Administration, Fees, and Other
Our fees for the years ended December 31, 2025, December 31, 2026, and December 31, 2027 audits will be:
Calendar Calendar Calendar
Year Year Year
Services Provided 12/31/2025 = 12/31/2026 } =: 12/31/2027
$45,000 $46,800 $48,600
Annual Annual Annual
$5,200 $5,400 $5,600
Annual Annual Annual
¢ ACFR (Audit Report)
* Single Audit*
Annual Total Costs of Services $50,200 $52,200 $54,200
* L&A notes charge is for 1 Major Program testing. Additional $1,500 per additional program tested.
In accordance with our firm policies, work may be suspended if your account becomes 90 days or more
overdue and may not be resumed until your account is paid in full. Please be advised that we will charge
interest on late invoices over sixty days.
Lauterbach & Amen’s client portal is used solely as a method of exchanging information and is not intended
to store the City’s information. At the end of the engagement, we will provide the City with a copy (in an
agreed-upon format) of deliverables and data related to the engagement from the portal. For multi-year
engagements, this exchange will occur annually.
Upon completion of the engagement, data and other content will either be removed from the portal or become
unavailable to Lauterbach & Amen, LLP within twelve months. For multi-year engagements, completion of
the engagement occurs when the deliverables are completed for that year.
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.
City of West Chicago
January 19, 2025 Page 5 of 6

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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. 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 & romen, LLP
LAUTERBACH & AMEN, LLP
RESPONSE:
This letter correctly sets forth the understanding of the City of West Chicago, Illinois.
By:
Title:
City of West Chicago
January 19, 2025 Page 6 of 6