AUDIT 2009/10/15 Minutes
The City of Lake Forest
AUDIT COMMITTEE
Proceedings of the October 15, 2009 Meeting
5:15 p.m. – Municipal Services Building, 800 North Field Drive
Savannah Conference Room
Minutes
I. Call to Order and Roll Call
Chairman Jacobs called the meeting to order at 5:15 p.m. Audit Committee Members present:
Chairman Jacobs, Johnson, Sweet, Reich, Marwede, and Finance Committee Chairman
Grumhaus (ex-officio). Absent: Mayor Cowhey. Quorum present.
City staff present: Robert Kiely, Jr., City Manager; Kathleen Reinertsen, Finance Director, Louise
Breckan, Assistant Finance Director and Diane Hall, Senior Accountant.
Others present: Linda Abernethy, Partner with McGladrey & Pullen.
Number present in the audience: none.
II. Consent Agenda
Approval of minutes from Audit Committee held on April 16, 2009
Ms. Reich made a motion to approve the April 16, 2009 minutes. The motion was seconded by
Mr. Marwede. The motion carried unanimously by voice vote.
III. Review of the draft of the Comprehensive Annual Financial Report (CAFR) for the Fiscal
Year ended April 30, 2009
Ms. Kathleen Reinertsen, Finance Director reviewed a two page summary report of the important
CAFR highlights and Trend Analysis report.
There were no significant changes that were requested to be made to the CAFR by the committee.
IV. Review draft of the Management Letter as prepared by McGladrey and Pullen
Ms. Linda Abernethy, Partner reviewed the management letter comments with the committee.
Committee members discussed the comment recommending establishing a fraud hotline for city
employees. Mr. Kiely distributed a copy of a resolution adopted by the City Council related to
one of the Personnel, Compensation and Administration (PCA) Committee’s responsibilities of
reviewing complaints filed against or concerns raised regarding City officials and employees. In
addition, Mr. Kiely distributed a copy of an ordinance approved by the City Council related to
one of the Audit Committee’s responsibilities of reviewing any question of impropriety or alleged
violation of the City’s Ethics Ordinance given to them by the City Council. The Committee
directed staff to conduct a survey of other communities to find out information and cost of a
hotline. Ms. Reich reported that the company where she works uses a fraud hotline. She stated
that she would find out information about the company’s hotline for the city.
Ms. Abernethy reviewed the required communications report with the committee.
Audit Committee Meeting
Minutes – October 15, 2009
Page 2 of 2
V. Executive Session with Auditors
A motion was made by Ms. Reich at 6:10 p.m. to adjourn into executive session with Ms.
Abernethy, McGladrey & Pullen. The motion was seconded by Mr. Sweet. The motion was
approved unanimously by voice vote.
A motion was made by Mr. Marwede to adjourn back into open session at 6:22 p.m. The motion
was seconded by Mr. Johnson. The motion was approved unanimously by voice vote.
VI. Other Business
Chairman Jacobs will present the FY2009 CAFR to the City Council on November 16, 2009 at
7:30 p.m.
VII. Adjournment
There being no further business, a motion was made by Mr. Johnson to adjourn the meeting. The
motion was seconded by Mr. Sweet. The motion was approved unanimously by voice vote. The
meeting was adjourned at 6:25 p.m.
Respectfully submitted,
Louise Breckan
Assistant Finance Director