FEBRUARY 2011

PROCUREMENT COMMUNICATIONS REPORT

OAG employees must document all written and oral communications they receive that impart or request material information or make a material argument regarding potential action concerning a procurement matter, including but not limited to an application, a contract, or a project. This requirement does not apply to communications regarding the administration and implementation of an existing contract, except communications regarding change orders or the renewal or extension of a contract.

Name and Title OAG Employee	Date/time of contact	Name and title of person making contact and name of company they represent	Registered Lobbyist?	Name and title of each additional participant to the communication	Method of contact (oral by phone, oral in person, or in writing). If by phone, list each person's phone number. If in person, list location of meeting.	Approximate duration of communication.	Provide a detailed summary of the points made by each person involved in the communication, including any action requested or recommendation made, and the substance of your response.
Jose G. Roa Auditor III	2/1/2011 11:20 am	Scott Bailey, Dir. Risk & Advisory, Bronner Group, LLC	No	None	Scott Bailey P: (312) 759-5101 Jose G. Roa P: (312) 814-4008	5 minutes	Scott stated firm is interested in performing Criminal Justice Information Authority compliance examination for the two years ended 6/30/11 and the firm is still independent with no potential conflict of interest. I informed him welcome letter with engagement information will be forthcoming in the future.
Bruce Bullard Director	2-3-11 1:27am	Jeff Bonick, Partner Clifton Gunderson & Co.	No	None	Jeff Bonick 309-495-8731 Bruce Bullard 217-782-0811	3 minutes	Follow-up on Procurement Question on 1/28/11 pertaining to RFP 11-4 pertaining to Illinois State University. At this time Clifiton Gunderson is precluded from proposing on RFP 11-4 since they are the predecessor audit firm acting as Special Assistant Auditors for the OAG. However, if the OAG does not receive proposals in response to the RFP 11-4 or the proposal(s) received are not satisfactory the OAG will reevaluate at that time.
Jon Fox, Auditor V	2-7-11 10:40am	Chris Meister, Executive Director, Illinois Finance Authority (IFA)	No	None	Chris Meister 312-651-1310 Jon Fox 217-524-2149	2 minutes	Chris asked how many respondents we had to last year’s RFP for the IFA audit engagement. He was concerned about the potential negative impact the prior administration might have had on interest in last year’s RFP. I responded by e-mail that three audit firms had proposed on the IFA RFP. I also indicated to Chris that it was my opinion that it would not have had an impact because it was over six years ago.
Kathy Lovejoy IS V	2-4-11 3:30 pm	Janice Romack, Partner West & Co.	No	None	Janice Romack-618-664-4848 Kathy Lovejoy-217-782-0798	5 minutes	Discussed the FY 11 ICI audit to determine the firms interest and independence.
Jon Fox Auditor V	2-7-11 4:30pm	Chris Meister, Executive Director, Illinois Finance Authority (IFA)	No	None	In Writing Chris Meister CMeister at il-fa.com Jon Fox oag32 at mail.state.il.us	10 minutes	Chris e-mailed asking if there was a disclosure requirement for procurement. This was prompted by our previous conversation today when I asked Chris if he was a registered lobbyist and why I was asking. I returned his e-mail and referred him to our January 2011 Procurement Communications report on our website and gave him the Administrative Code citation.
Thomas Kizziah Auditor V	2-8-11 10:20am	Joe Evans, Partner McGladrey & Pullen	No	None	Joe Evans – 312-485-1776 (Cell Phone) Thomas Kizziah – 312-814-4073	5 minutes	I asked Joe if he were still interested and independent on both the Illinois Housing Development Authority and the State Universities Retirement System. He stated he was interested and independent for both of these engagements.
Bruce Bullard Director	2-8-11 11:00am	Joe Evans, Partner Linda Abernethy, Partner McGladrey & Pullen LLP	No	None	Meeting at the Illinois Office of the Auditor General in Springfield, Illinois.	30 minutes	Discussed audit matters related to the current and ongoing audits of the Illinois Student Assistance Commission and the Illinois Toll Highway Authority. Discussed the RFP 11- 2 which the OAG has issued pertaining to the Illinois Student Assistance Commission. Specifically, whether McGladrey & Pullen LLP would be eligible to propose on the RFP 11- 2. I told Mr. Evans and Mrs. Abernethy that he would research the matter and contact them by phone later today.
Bruce Bullard Director	2-8-11 1:45pm	Joe Evans, Partner McGladrey & Pullen LLP	No	None	Joe Evans 312-485-1776 (Cell Phone) Bruce Bullard 217-782-0811	1 minute	I informed Joe Evans that the firm of McGladrey and Pullen LLP is eligible to submit a proposal in response to the OAG RFP 11-2 pertaining to the FY 11 audit of the Illinois Student Assistance Commission. Further, the OAG would post an amendment on its web-site today stating - The Office of the Auditor General is not precluding the public accounting firm (special assistant auditors) that is currently contracted and performing the fiscal year 2010 Illinois Student Assistance Commission engagement from submitting the proposals described in this solicitation.
Candice Long Audit Manager	2-9-11 10:47am	Linda Abernethy, Partner McGladrey & Pullen, LLP	No	None	TO: Linda email: Linda.abernethy-at-mcgladrey.com From: CL email: oag40-at-mail.state.il.us	n/a	Emailed Linda a revised timetable for the Department of Revenue engagement with changes reflected.
Candice Long Audit Manager	2-9-11 11:15 am	Linda Abernethy, Partner McGladrey & Pullen, LLP	No	None	Linda Abernethy 847-413-6248 Candice Long 217-524-5450	5 minutes	We discussed the changes in the engagement timetable for the Department of Revenue Engagement and decided to proceed with the revised dates and complete an amendment. I told Linda I would overnight the contract amendment to her.
Bruce Bullard Director	2-14-10 8:45am	Troy Swinford Partner, BKD	No	None	Troy Swinford 217-429-8411 Bruce Bullard 217-782-0811	4 minutes	BKD e-mailed a question regarding RFP 11-1 pertaining to the Illinois State Board of Education. “We just had a couple of questions as we were working through the proposal process. Did something change in the last 2 years of the engagement – specifically related to the GAAP packages? Was the firm preparing them as well? We just noticed the hours increasing in 2009/2010 and it appeared to be related to GAAP packages.” Answer: Yes, The increase in hours is primarily attributed to a conversion process. The scope of the FY 08 the engagement was a one year financial audit, one year State Compliance Examination, and Agreed Upon Procedures Work. The scope of the FY 09 the engagement was a one year financial audit and agreed upon procedures work. The actual hours incurred were significantly higher than the original estimate. The scope of the FY 10 the engagement was a one year financial audit, two year State Compliance Examination, and Agreed Upon Procedures work. A final billing has not yet been received for this engagement. The firm (special assistant auditors) did not prepare the GAAP packages for the Illinois State Board of Education. I suggested that BKD take a close look at page 2a, 10, and 11 of the RFP.
Teresa Davis Audit Manager	2-14-11 10:15 am	Gary Neubauer, Partner, Sikich, LLP	No	None	Gary Neubauer (217) 862-1710 Teresa Davis (217) 782-0818	5 minutes	Discussed amending the contract timetable for the Department of Central Management Services due to delays in the engagement. Gary will submit revised timetable.
Candice Long Audit Manager	2/14/11 in mail	Tom Leach, Partner with Sikich, LLP	No	None	Tom Leach, 132 S. Water St., Suite 300 Decatur, IL 62523	N/A	Received signed contract amendment for IOC Nonfiscal Officer engagement FY10
Candice Long Audit Manager	2/14/11 in mail	Linda Abernethy, Partner with McGladrey & Pullen, LLP	No	None	Linda Abernethy, 20 N. Martingale rd.., Schaumburg, IL 60173	N/A	Received signed contract amendment for IDOR FY10 engagement
Teresa Davis Audit Manager	2-15-11 9:07 am	Gary Neubauer, Partner, Sikich, LLP	No	None	E-mail From: Gary Neubauer GNeubauer-at-Sickick.com TO: Teresa Davis OAG28-at-mail.state.il .us	N/A	Gary e-mailed the suggested revisions to the Central Management Services contract timetable.
Teresa Davis Audit Manager	2-15-11 9:16 am	Gary Neubauer, Partner, Sikich, LLP	No	None	E-mail To: Gary Neubauer GNeubauer-at-Sickick.com From: Teresa Davis OAG28-at-mail.state.il .us	N/A	Gary previously e-mailed the suggested revisions to the Central Management Services contract timetable and audit manager e-mailed back to state that the revisions to the contract timetable was reasonable.
Jane Clark Statewide Single Audit Manager	2-15-11 3:20 p.m.	Cathy Baumann, Partner, KPMG LLP	No	None	Meeting at the Illinois Office of the Auditor General in Springfield, Illinois.	5 minutes	Discussed amending contract timetable for the Statewide Single Audit as well as for the decrease in the number of major programs to be audited based on final SEFA information received from the IOC. Cathy will submit revised budget and timetable in the near future for my review.
Lisa Warden Audit Manager	2-16-11 10:41 am	Nick Appelbaum Partner, Sikich LLP	No	None	Nick Appelbaum 217-793-3363 Lisa Warden 217-785-2683	5 minutes	Discussed firm’s interest, independence, and lack of conflicts of interest to conduct the FY10/11 repeat compliance examination of Department of Public Health. An information systems review of the Department will be the subject of a separate contract. I will send a welcome letter and background information and the firm will prepare an informal proposal. Expenses should be included in the computed rate.
Lisa Warden Audit Manager	2-16-11 4:38 pm	Ed Ortiz Principal, EC Ortiz & Co., LLP	No	None	Ed Ortiz 1-312-876-1900 Lisa Warden 217-785-2683	3 minutes	Discussed firm’s interest, independence, and lack of conflicts of interest to conduct the FY11 repeat financial/compliance/Single audit of Western Illinois University. Firm will send an informal proposal after the FY10 audit is complete.
Bruce Bullard Director	2-16-11 4:37 pm	Cheryl Martin Partner KEB	No	None	Cheryl Martin 217-789-0960 Bruce Bullard 217-782-0811	4 minutes	Cheryl Martin asked about RFP 11-3, page 8, Item 3 pertaining to Required/Preferred Experience. Specifically, the requirement pertaining to Entities which issue bonds and have outstanding bonded debt of $1 billion or more. Was this a requirement in the last RFP issued by the OAG for the Office of the Treasurer audit engagement? Answer: Yes, however, the requirement was for $500 million. OAG thought the amount should be raised for this RFP procurement. Firms proposing should address their prior experience concerning this requirement.
Teresa Davis Audit Manager	2-15-11 3:15 pm	Gary Neubauer, Partner, Sikich, LLP	No	None	In writing	N/A	Teresa received in writing a revised Central Management Services contract timetable from Gary Neubauer.
Bruce Bullard Director	2-18-11 9:20am	Joe Evans Partner McGladrey & Pullen LLP	No	None	Joe Evans 847-413-6919 Bruce Bullard 217-782-0811	3 minutes	Mr. Evans called concerning the new disclosure forms included in the OAG RFP (specifically information requirements addressed pages 33, 34 and 35). Subsection 1a on pages 33 and 34 contain three different boxes. McGladrey and Pullen LLP would meet the definition in the second box; however, they are also a partnership referenced in the box 3. However, the first sentence after box 3 makes a specific reference to “or any other entity not covered above.” In the past, McGladrey & Pullen LLP has provided a listing of all partners, performed specific due diligence with all firm partners and addressed information requirements set forth in Subsection 1b of the disclosure form. Prior to proceeding with the completion of the disclosure form and conflicts of interest, however, Mr. Evans wanted to check with the OAG regarding expectations since their appears to be some inconsistency between Subsection 1a for box 2 and 3 as it would apply to the firm of McGladrey and Pullen. I responded that I would research the matter and get back to him this morning.
Bruce Bullard Director	2-18-11 9:45am	Joe Evans Partner McGladrey & Pullen LLP	No	None	Joe Evans 847-413-6919 Bruce Bullard 217-782-0811	2 minutes	I called Joe Evans back after performing certain research related to his questions from earlier in the morning. I told Mr. Evans that the OAG understood his questions regarding the disclosures on pages 33, 34, and 35. With regard to Subsection 1a it would be fine to check both the 2 and 3^rd box in McGladrey & Pullen’s situation. The second box refers to 17 CFR 229.401 which would likely be a very specific list of individuals. Box number 3 would require a listing of all partners. Subsection 1b would be addressed for the list of any individuals identified in Subsection 1a. Thus, the firm of McGladrey and Pullen LLP should perform its due diligence in completing the disclosure forms and conflicts of interest for all individuals listed in Subsection 1a when responding to matters set forth in Subsection 1b.
Jane Clark Statewide Single Audit Manager	2-18-11 11:45	Kyle McGinnis Sole Proprietor	No	None	Jane Clark 217-782-0816 Kyle McGinnis 217-753-3377	3 minutes	Discussed firm’s interest, independence, and lack of conflict of interest to conduct the audit of the Illinois Conservation Foundation for the year ended June 30, 2011. This will be their last rotation on this engagement. Discussed that expenses should be incorporated into their fee structure when they submit their proposal. I will be sending the welcome letter in the near future and then he will need to prepare the informal proposal and submit for my review.
Jane Clark Statewide Single Audit Manager	2-18-11 11:50	Kyle McGinnis Sole Proprietor	No	None	Jane Clark 217-782-0816 Kyle McGinnis 217-753-3377	3 minutes	Discussed firm’s interest, independence, and lack of conflict of interest to conduct the audit of the Illinois Board of Admissions to the Bar for the two years ended September 30, 2011. This will be their last rotation on this engagement (emergency procurement last time). Discussed that expenses should be incorporated into their fee structure when they submit their proposal. I will be sending the welcome letter in the near future and then he will need to prepare the informal proposal and submit for my review.
Bruce Bullard Director	2-18-11 11:15am	Tom McGreal Partner McGreal & Company PC	No	None	Tom McGreal 708-422-8600 Bruce Bullard 217-782-0811	3 minutes	Mr. McGreal called this morning regarding the upcoming FY 11 engagements. Specifically, Mr. McGreal indicated his firm is giving some consideration to proposing on an OAG RFP that has been recently issued. McGreal & Company PC, however, has not completed their rotation cycle with the OAG for two other OAG engagements scheduled to be performed this calendar year. Further, McGreal & Company PC had not yet been contacted by an OAG employee about their interest or independence for one of the two engagements for the upcoming audit cycle where the firm rotation cycle had not yet been completed. Specifically, McGreal & Company PC was wondering if the OAG has made other plans for this engagement which impacts their decision process related to OAG RFPs currently on the street. I apologized to Mr. McGreal that he had not yet been contacted and that the OAG employee assigned to do this would be contacting him next week.
Bruce Bullard Director	2-18-11 12:50pm	Jeff Dowd Principal Reznick Group PC	No	None	Jeff Dowd 847-324-7514 Bruce Bullard 217-782-0811	3 minutes	Mr. Dowd requested information on how to locate prior audit reports the OAG has issued related to the entities covered in RFP 11-2 (ISAC) and 11-3 (Office of the State Treasurer). I walked him through the OAG web-site to locate prior reports that have been issued.
Bruce Bullard Director	2-18-11 4:30pm	Jeff Markert Partner KPMG	No	None	Jeff Markert 312-399-5850 Bruce Bullard 217-782-0809	3 minutes	Mr. Markert made a general inquiry regarding the disclosure forms in the OAG RFP documents on the street. Specifically, whether the disclosure forms had changed from the ones the OAG used last year. I responded that the format has been modified; however, the basic content has not changed. Mr. Markert asked if the list of partners in subsection (a) should include those outside the U S. I responded that I would research the matter call him back.
Bruce Bullard Director	2-18-11 4:38pm	Jeff Markert Partner KPMG	No	None	Jeff Markert 312-399-5850 Bruce Bullard 217-782-0809	2 minutes	I called Mr. Market back to follow up on our discussion. Specifically, I indicated the law and the forms are silent on the matter of disclosing partners on a world wide basis. Mr. Market indicted that the international partners were part of a separate legal entity. I responded that the OAG would not reject any proposal that listed only U S partners.
Bruce Bullard Director	2-18-11 4:48pm	Jeff Markert Partner KPMG	No	None	Jeff Markert 312-399-5850 Bruce Bullard 217-782-0809	3 minutes	Discussion about subsection (b) items of the disclosure forms took place concerning their applicability to all geographical areas of the U. S. for all partners listed in subsection (a).
Bruce Bullard Director	2-18-11 4:58pm	Jeff Markert Partner KPMG	No	None	Jeff Markert 312-399-5850 Bruce Bullard 217-782-0811	3 minutes	I called Mr. Markert back after reviewing all the items set forth under subsection (b) of the disclosure forms. I indicated that I thought most of the items set forth under subsection (b), in my opinion, related to the geographical boundaries of Illinois. However, a few of the items under subsection (b) would pertain to items which are not limited to the geographical boundaries of Illinois. I indicated these items should clearly stand out when one works their way through the items under subsection (b) of the disclosure form.
Jane Clark, Statewide Single Audit Manager	2-22-11 9:00	Ed Ortiz Principal, EC Ortiz & Co., LLP	No	None	Jane Clark 217-782-0816 Ed Ortiz 312-876-1900	3 minutes	Discussed firm’s interest, independence, and lack of conflict of interest to conduct the audit of the Supreme Court (including Appellate Court Districts 1-5 and the Illinois Courts Commission) for the two years ended June 30, 2011. Discussed that expenses should be incorporated into their fee structure when they submit their proposal. I will be sending the welcome letter this week and then he will need to prepare the informal proposal and submit for my review by mid April as we do have a budget for early work (ie. prior to June 30). Let him know the four disclosure forms had been consolidated into one document.
Jane Clark, Statewide Single Audit Manager	2-22-11 9:05	Ed Ortiz Principal, EC Ortiz & Co., LLP	No	None	Jane Clark 217-782-0816 Ed Ortiz 312-876-1900	3 minutes	Discussed firm’s interest, independence, and lack of conflict of interest to conduct the audit of the Attorney Registration and Disciplinary Commission for the two years ended December 31, 2011. Discussed this will be the final rotation for this engagements since it was an emergency procurement in FY09. Discussed that expenses should be incorporated into their fee structure when they submit their proposal. I will be sending the welcome letter this week and then he will need to prepare the informal proposal and submit for my review by mid May as my Director likes to have all contracting done prior to mid June. There is no early work money budgeted on this engagement as it is a 12/31 year end.
Peggy Hartson Audit Manager	2-22-11 9:30am	Ed Ortiz Principal, EC Ortiz & Co., LLP	No	None	Peggy Hartson 217-524-8748 Ed Ortiz	2 minutes	Discussed the firm’s interest, independence and lack of conflict of interest to conduct the financial audit of the Environmental Protection Agency’s Water Revolving Fund for the year ended June 30, 2011. Noted that I will be sending the welcome letter in the near future. Discussed that the firm’s expenses will be built in to their fees when they submit their proposal.
Peggy Hartson Audit Manager	2-22-11 9:35am	Nick Appelbaum Principal Sikich LLP	No	None	Peggy Hartson 217-524-8748 Nick Appelbaum 217-793-3922	3 minutes	Discussed the firm’s interest, independence and lack of conflict of interest to conduct the financial audit of the Department of Transportation for the year ended June 30, 2011. Noted that I will be sending the welcome letter in the near future and the firm’s expenses will be built into their fees when they submit their proposal.
Bruce Bullard Director	2-22-11 11:35am	Jeff Dowd Principal Reznick Group PC	No	None	Jeff Dowd 847-324-7514 Bruce Bullard 217-782-0811	5 minutes	Mr. Dowd inquired about making an appointment to view information available the OAG office related to RFP 11-3. I suggested he call Denise Gladney in our Chicago office at 312-814-4007 to schedule a time to view information referenced in Section 11 of the RFP document. Mr. Dowd inquired about the approximate or historical hour information referenced on the Notice of Intent to Issue Request for Proposals related to RFP 11-3. The information for the four engagements was briefly discussed, however, I suggested to Mr. Dowd that he review past billing and supporting document information available in the OAG office related to: 1) level of effort by major audit area, 2) level of effort by class of accountant, and 3) level of effort by month for more detailed information related to past audit effort.
Lana Miari Auditor III	2-22-11 2:05pm	Colleen Porter Manager McGreal & Company	No	Thomas. Kizziah	Lana Miari & Thomas L. Kizziah 312-814-4073 Collen Porter 708-422-8600	5 minutes	Lana & Thomas called Colleen to determine whether the Firm was still interested in performing the upcoming engagement of the Illinois Department of Human Rights and to determine if the Firm was still independent. Colleen stated yes to both questions. Lana & Thomas informed Colleen that our Office no longer pays expenses as part of the contract. These expenses will need to be built into the hourly fee going forward. Lana & Thomas also informed Colleen that an Agency notification letter would go out in approximately 6 weeks and that the Welcome Letter with all necessary contract forms would be enclosed.
Thomas Kizziah Auditor V	2-22-11 2:10pm	Edilberto Ortiz, Partner - E.C. Ortiz & Co., LLP	No	None	Face to Face in the Chicago Office of the Auditor General	5 minutes	Edilberto was in the Chicago Office reviewing an RFP. I met with him to ask if he was still interested in performing the engagements on the Illinois Department of Employment Security, Governors State University, Illinois Medical District Commission and Workers Compensation Self Insurers Fund. Edilberto stated he was interested and I asked him if he was still independent in relation to those engagements. He stated that he was still independent. I told him that I would be sending him the Welcome Letters on these engagements in the next 6 weeks or so and that the Letters would provide him with his Phase I dollar threshold and all of the necessary forms in order to send me a proposal.
Elena Bryjka Auditor III	2-22-11 2:34 p.m.	Mike Morrissey Manager McGreal and Company PC	No	None	Email: To: Mike Morrissey <mikem-at-mcgreal.com> From: EVB <oag21-at-mail.state.il.us>	n/a	Mike contacted me regarding the number of hours that were budgeted for both Phase I work (to be performed prior to June 30, 2011) and Phase II work. I told him that we are not allowed to disclose that type of information but was able to relate the early work budget in dollars. In addition, I reiterated that the welcome letter would be forthcoming, which should assist him in developing a proposal.
Bruce Bullard Director	2-23-11 11:26am	Jeff Bonick Partner Clifton Gunderson & C0.	No	None	Jeff Bonick 309-495-8731 Bruce Bullard 217-782-0811	5 minutes	Jeff Bonick called and indicated that Clifton Gunderson & Co. was taking a careful look at RFP 11-3 pertaining to the Office of the Treasurer engagement. However, in performing their due diligence in preparing a proposal a matter came to their attention that he wanted to discuss. The Office of the Treasurer engagement is made up of 4 separate audits: 1) Fiscal Officer, 2) Non Fiscal Officer, 3) Illinois Funds, and 4) College Savings Program. The College Savings Program engagement pertains to a 529 Plan. Specifically, one of the partners in the Peoria office of Clifton Gunderson & Co. has a family and contributes to the 529 Plan for a family member. In reading the AICPA’s Code of Professional Conduct pertaining to independence, integrity, and objectivity one specific section 17 101.15 addresses independence matters related to Section 529 Plans. One of the partners in the Peoria Office of Clifton Gunderson would meet the definition of a covered member who is an account owner in the 529 Plan. I suggested that Clifton Gunderson continue with their due diligence in researching the matter. Further, should Clifton Gunderson & Co. decide to submit a proposal to the OAG they should disclose the matter and any plan they would implement to address any independence issues.
Jodie Carey Auditor III	2-23-11 1:55 p.m.	Edilberto C. Ortiz Managing Partner E.C. Ortiz	No	N/A	Phone: Edilberto Ortiz 312-876-1900 Jodie Carey 217-558-4243	5 minutes	Discussed the firm’s interest, independence and lack of conflict of interest to conduct the financial audit of the Capital Development Board for the year ended June 30, 2011. Noted that I will be sending the welcome letter in the near future.
Jon Fox, Auditor V	2-23-11 3:10pm	Tom Leach. Partner Sikich LLP	No	None	Phone: Tom Leach 217-423-6000 Jon Fox 217-524-2149	10 minutes	Discussed the firm’s interest in the Office of the Secretary of State and the Illinois Literacy Foundation engagements for the fy11 audit cycle. Tom indicated that they were interested in continuing these engagements. We discussed Sikich’s independence and potential conflicts of interest. We discussed the firms last and next peer review. We discussed early work money available and start dates. I indicated to Tom that I would send a Welcome letter about a month before the projected start date, sometime in mid-March.
Jon Fox, Auditor V	2-23-11 3:50pm	Ed Ortiz Managing Partner E.C. Ortiz & Co. LLP	No	None	Phone: Ed Ortiz 312-876-1900 Jon Fox 217-524-2149	10 minutes	Discussed the firm’s interest in the Eastern Illinois University (EIU), Illinois Finance Authority (IFA) and Council on Developmental Disabilities engagements for the fy11 audit cycle. Ed indicated that they were interested in continuing these engagements. We discussed if EIU would issue bonds this year. We discussed E. C. Ortiz & Co.’s independence and potential conflicts of interest, including any non-audit services performed by the firm. We discussed the firms last and next peer review. We discussed early work money available and start dates. We discussed IFA perhaps needing an additional week near year end without the auditors and its impact on the start date. I indicated to Ed that I would send a Welcome letter about a month before the projected start date, sometime in mid-March. Ed asked if he could contact the agency to discuss start dates and I indicated that he could.
Jon Fox, Auditor V	2-23-11 3:10pm	Tom Leach. Partner Sikich LLP	No	None	Phone: Tom Leach 217-423-6000 Jon Fox 217-524-2149	5 minutes	Tom called me back about our previous conversation this afternoon to discuss non-audit service Sikich is providing to several agencies. We determined that this work would not impact their independence at the Office of the Secretary of State or the Illinois Literacy Foundation.
Thomas Kizziah Auditor V	2-23-11 11:30am	Jon Hoffmeister, Partner – Clifton Gunderson	No	None	Phone: Jon Hoffmeister 630-954-8157 Thomas Kizziah 312-814-4073	5 minutes	I gave Jon a call to determine the Firm’s interest in performing the upcoming engagement for Northeastern Illinois University and to inquire as to whether the Firm was still independent. Jon said that Clifton Gunderson was in fact interested and they remain independent. I mentioned to Jon that we would also be performing an expanded scope information systems review and that his proposal would need to include a block of 300 hours. I mentioned to him that we no longer pay expenses as part of our contracts and that he would need to build the expenses into his hourly rate and expenses his Firm will incur. Finally, I told Jon that I would be sending him the Welcome Letter in approximately 6 weeks.
Thomas Kizziah Auditor V	2-23-11 2:30pm	Cathy Baumann, Partner, KPMG LLP	No	None	Face to Face in the Chicago Office of the Auditor General	5 minutes	Cathy was here in the Chicago Office reviewing RFP’s and we discussed the upcoming engagement for the University of Illinois. I asked her if KPMG was still interested in performing the engagement and I asked her if the Firm was still independent. She stated that they were interested and that the Firm was still independent. I told her that I would be sending her a Welcome Letter soon and I also mentioned that starting in FY11 that expenses were no longer being paid as part of the contract and that the Firm’s hourly rate would need to have an expense component built into it.
Candice Long, Auditor V	2-24-11 1:40pm	Tom Leach. Partner Sikich LLP	No	None	Phone: Tom Leach 217-423-6000 Long 217-524-5450	7 minutes	Discussed the firm’s interest in the Office of the Comptroller- Fiscal Officer engagement for the FY11 audit cycle. Tom indicated that they were interested in continuing these engagements. We discussed Sikich’s independence and potential conflicts of interest. We discussed the firms last and next peer review. We discussed early work money available and start dates. I indicated to Tom that I would send a Welcome letter in a week or two.
Jane Clark Statewide Single Audit Manager	2-24-11 3:30 p.m.	Cathy Baumann, Partner KPMG LLP	No	None	Phone Jane Clark 217-782-0816 Cathy Baumann 312-665-8980	12 minutes	Discussed amending FY09 single audit contract. Agreed would reduce by 12 programs minus hours built in for prior finding follow up. Will also amend contract timetable at the same time. I need her to send me revised dates for the timetable and a revised budget for the single audit.
Candice Long Audit Manager	2-25-11 8:20 am	Linda Abernethy, Partner McGladrey & Pullen, LLP	No	None	Linda Abernethy 847-413-6248 Candice Long 217-524-5450	10 minutes	Discussed the firm’s interest in the Department of Revenue engagement for the FY11 audit cycle. Linda indicated that they were interested in continuing the engagement. We discussed McGladrey’s independence and potential conflicts of interest. We discussed the firms last and next peer review. We discussed early work money available and start dates. I indicated to Linda that I would send a Welcome letter in a month or two.
Paul Usherwood, Engagement Manager	02-24-2011, 9:00am	Nick Appelbaum, Partner, Sikich LLP	No	None	Phone: Nick Appelbaum, 217-793-3363	5 minutes	Inquired if the firm was interested in performing the DHS engagement next year and if they had any independence issues or conflicts of interest. Nick indicated they were planning to perform the engagement and did not have independence issues or conflicts of interest. I indicated as the current engagement nears completion I will forward the FY 11 welcome letter and other relevant contracting information.
Gayla Rudd Auditor V	02-28-2011 8:40 am	Chris Mower, Partner, Crowe Horwath, LLP	No	None	Phone Chris Mower 217-862-2707 Gayla Rudd 217-782-8393	5 minutes	Discussed firm’s interest in performing the SIU engagement for the FY11 audit cycle and if they were independent. Chris said they were interested and independent. We discussed if same team would work on engagement. She said one auditor would be replaced with one of equal experience. We discussed the expenses for the contract would be a component built into the firm’s fixed rate. I stated I would send the Welcome Letter in about 2 -3 weeks.
Gayla Rudd Auditor V	02-28-2011 9:30am	Janice Romack, Partner, West & Company, LLC	No	None	Phone Janice Romack 618-664-4848 Gayla Rudd 217-782-8393	5 minutes	Discussed firm’s interest in performing the General Assembly engagement for the FY11 and if they were independent. Janice said they were interested and independent. We discussed if same team would work on engagement. She said the team would be the same. We also discussed the expenses for the contract would be a component built into the firms fixed rate. I stated I would send the Welcome Letter in about 2-3 weeks.
Christa Bull Auditor III	02-24-2011 4:00 pm	Paul Pelletier, Partner, Borschnack, Pelletier, & Co.	No	Alison Schertz Auditor IV	Phone: Christa Bull & Alison Schertz 217-782-1009 Paul Pelletier 815-933-1771	3 minutes	Let the firm know that the manager assigned to the engagement had changed from Alison Schertz to Christa Bull. Discussed the firm’s interest in the IMSA and IMSA Fund engagements next year and if they had any independence issues or conflicts of interest. Paul indicated they were planning to perform the engagements and did not have independence issues or conflicts of interest. Alison and Christa indicated to Paul that the Welcome letter would be sent out in about 2-3 weeks.
Courtney Dzierwa Auditor IV	02-22-2011 3:35 pm	Tom Leach, Partner Sikich, LLP	No	None	Phone: Tom Leach 217-423-6000 Courtney Dzierwa 217-785-2108	4 minutes	Discussed the need to complete contract amendments for the DCFS engagements to reflect changes in the engagement timetables.
Courtney Dzierwa Auditor IV	02-26-2011 9:40 am Courtney did not open the email until 2/28/2011	Tom Leach, Partner Sikich, LLP	No	None	Email from tleach-at-sikich.com (Tom Leach) to oag11-at-mail.state.il.us (Courtney Dzierwa)	N/A	Firm emailed updated proposed updated engagement timetables for the 2010 financial audit and compliance examination of DCFS.
Peggy Hartson Auditor V	2-28-2011 2:00pm	Nick Appelbaum, Partner Sikich LLP	No	Kelli Kauffman-Bruns, Manager Sikich LLP	In person at the Sikich LLP office at 3201 W. White Oaks Dr Spfld, IL 62704	5 minutes	Discussed the need to complete contract amendments to extend certain dates on the engagement timetable for the 6/30/10 audit of the Department of Transportation in the coming week. Discussed engagement status to determine what the dates will need to be.
Peggy Hartson Auditor V	2-28-2011 2:15pm	Nick Appelbaum, Partner Sikich LLP	No	None	In person at the Sikich LLP office at 3201 W. White Oaks Dr Spfld, IL 62704	5 minutes	Discussed the need to complete contract amendments to extend certain dates on the engagement timetables for both the FY09/10 compliance examination of the Department of Financial and Professional Regulation and the FY10 compliance examination of the Department of Insurance.