AUDIT 2014/10/16 MinutesThe City of Lake Forest
AUDIT COMMITTEE
Proceedings of the October 16, 2014 Meeting
5:15 p.m. – City Hall, 220 E. Deerpath
City Hall Conference Room
Minutes
I. Call to Order and Roll Call
Chairman Baier called the meeting to order at 5:16 p.m. Audit Committee Members present:
Chairman Baier, O’Callaghan and Stieber. Absent: Mayor Schoenheider, Finance Chairman
Pandaleon, Mr. Logan and Ms. Krebs. Quorum present.
City staff present: Robert Kiely, City Manager; Elizabeth Holleb, Finance Director and Diane Hall,
Assistant Finance Director
Others present: Linda Abernethy Partner of McGladrey LLP. and Dan Sethness of McGladrey LLP.
Number present in the audience: None
II. Consent Agenda
Approval of minutes from Audit Committee held on July 17, 2014
Mr. Stieber made a motion to approve the July 17, 2014 minutes after a spelling correction is
made. The motion was seconded by Mr. O’Callaghan. The motion carried unanimously by voice
vote.
III. Review Draft of Comprehensive Annual financial Report for Fiscal Year Ended April 30, 2014
Ms. Elizabeth Holleb, Finance Director reviewed a consolidated schedule of changes included in
the Comprehensive Annual Financial Report (CAFR).
The Committee discussed the pension schedules included in the CAFR.
Mr. George Pandaleon and Mr. Andy Logan entered the meeting at 5:25 pm.
The Committee discussed the new reporting methods utilizing deferred inflows and outflows.
Ms. Holleb discussed the changes in rating for government investments.
IV. Review Draft of Report to the Audit Committee (Includes Management Letter) as Prepared by
McGladrey LLP
Ms. Linda Abernethy, Partner of McGladrey LLP reviewed the management letter, which
included three comments.
The Committee discussed each individual management letter comment and the
recommendations to address each issue.
Ms. Abernethy reviewed a sample GASB 68 Statement of Net Position schedule utilizing IMRF
data for the year ending December 31, 2013 and the Police and Fire Pensions April 30, 2014.
The Committee discussed the difference for IMRF excluding retirees for current report
reflections, while in GASB 68 retirees are included for the calculation of unfunded liability.
Ms. Abernethy discussed the passed adjustment schedule included in the report to the Audit
Committee. Both management and McGladrey LLC agreed on the waiver of the adjustment.
Mr. Robert Kiely, City Manager stated the City will be conducting a forensic audit of the Route 60
Funds to determine the status of the remaining funds.
V. Executive Session with Auditors
Committee members adjourned into executive session with Ms. Abernethy at 6:35.
Committee members adjourned the executive session at 6:40.
VI. Other Business
GASB 68 – Discussed under review of report to the Audit Committee.
Foundations Summary – Mr. Kiely stated a possible new police organization may be added to
review.
Foundation Financial Review – Ms. Holleb stated the financial figures have been updated.
Ragdale Foundation – 2013 Audit - Ms. Holleb stated errors were discovered within the Ragdale
audit provided to the Committee. These errors will be communicated to the Ragdale
Foundation.
Presentation of Audit to the City council on November 3, 2014 at 6:30 p.m. – Ms. Holleb will
provide speaking points to Chairman Baier.
VII. Opportunity for Public to Address the Audit Committee – No members of the public were in
attendance.
VIII. Adjournment
There being no further business, a motion was made by Mr. Logan to adjourn the meeting. The
motion was seconded by Mr. Stieber. The motion was approved unanimously by voice vote.
The meeting was adjourned at 6:45 p.m.
Respectfully submitted,
Diane Hall
Assistant Finance Director