AUDIT 2013/08/22 MinutesThe City of Lake Forest
AUDIT COMMITTEE
Proceedings of the August 22, 2013 Meeting
5:15 p.m. – City Hall, 220 E. Deerpath
City Hall Conference Room
Minutes
I. Call to Order and Roll Call
Chairman Moreno called the meeting to order at 5:16 p.m. Audit Committee Members present:
Chairman Moreno, Baier, Logan and Marwede. Absent: Mayor Schoenheider, Finance Chairman
Pandaleon and Ms. Krebs. Quorum present.
City staff present: Elizabeth Holleb, Finance Director; Diane Hall, Assistant Finance Director.
Others present: Linda Abernethy Partner of McGladrey LLP.; Tom Lyons, Manager of McGladrey
LLP; Dave Cain, auditor for Ragdale Foundation; Jeff Meeuwen and Lisa Teufel of the Ragdale
Foundation
Number present in the audience: One
II. Consent Agenda
Approval of minutes from Audit Committee held on April 18, 2013
Ms. Baier made a motion to approve the April 18, 2013 minutes with modifications. The motion
was seconded by Mr. Marwede. The motion carried unanimously by voice vote.
III. Ragdale Foundation – Financial Presentation
Chairman Michelle Moreno welcomed the Committee and explained the Committee’s function as
it relates to the Foundations relations to the City and how the foundations benefit the City.
City Manager Bob Kiely entered the meeting at 5:20 p.m.
Mr. Jeff Meeuwen introduced himself as the new Director of Ragdale and introduced Lisa Teufel as
the Accountant of Ragdale.
Mr. Dave Cain reviewed the 2011 financial statements with the Committee. He explained the cash
increase in 2011 was from the loan of $2,000,000 from the City to the Foundation. He explained
the project was completed in 2012. He explained the 2012 audit has not been completed due to
the change in auditors as well as changes in staffing at Ragdale. He explained the Executive
Assistant was replaced by two part time employees to assist with enhanced internal controls.
Amy Krebs entered the meeting at 5:40
The Committee has requested copies of the 2012 financials to be included in the packet for the
October 17, 2013 Audit Committee. The Committee discussed the construction controls over the
improvements to Ragdale, as well as investment policies.
IV. FY13 Audit Status Report
Linda Abernethy stated the audit exit review had been completed and the audit had gone well.
The Committee discussed inventory adjustments made at the Golf Course for FY2013 and the steps
that have been taken to reduce the possibility of theft and financial adjustments.
V. Pension Reporting Changes
Ms. Abernethy explained in FY2016 the City will be required to implement GASB67 and GASB68 as
it relates to pension reporting in the City’s annual financial report. She stated the new
requirements will include the unfunded liability in the financial statements. She explained the
information is currently in the notes to the financials, but will now be included in the entity-wide
financial statements as well.
VI. Other Business
Foundations Summary – Ms. Holleb reviewed a summary of all the foundations that report to the
Audit Committee. The summary provides background information on each foundation and how
the foundation relates to the City.
City staff will review the amount of interest waived by the City Council for Ragdale.
Foundation Financial Review – Ms. Holleb provided an updated list of the foundations reviewed
by the Committee and when each foundation should present to the Committee.
Five Year Forecasts – General Fund and Capital Improvements Fund – Ms. Holleb provided an
overview of the financial information that is provided to the City Council during the budget
process. She explained conservative revenues figures are used to help generate the five year
forecasts. She explained the Real Estate Transfer Tax is the main revenue source for the Capital
Improvement Fund.
Holland & Knight July 24, 2013 Alert – Ms. Holleb stated a letter was included in the packet for
information only.
VII. Opportunity for Public to Address the Audit Committee – None
VIII. Adjournment
There being no further business, a motion was made by Mr. Marwede to adjourn the meeting.
The motion was seconded by Mr. Logan. The motion was approved unanimously by voice vote.
The meeting was adjourned at 6:47 p.m.
Respectfully submitted,
Diane Hall
Assistant Finance Director