AUDIT 2011/04/21 Minutes
The City of Lake Forest
AUDIT COMMITTEE
Proceedings of the April 21, 2011 Meeting
5:15 p.m. – City Hall, 220 E Deerpath
City Manager’s Conference Room
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, Mr. Marwede, Ms. Reich, Ms. Moreno, Mayor Cowhey (ex-
officio) and Finance Committee Chairman Grumhaus (ex-officio). Absent: Ms. Krebs.
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, Mark Milliman,
Treasurer of the Parks and Recreation Foundation and Wendy McKiernan,
Superintendent of Recreation.
Number present in the audience: none.
II. Consent Agenda
Approval of minutes from Audit Committee held on October 21, 2010
Ms. Reich moved, seconded by Ms. Moreno to approve the minutes from the Audit
Committee meeting held on October 21, 2010. The motion carried unanimously by
voice vote.
McGladrey & Pullen April 30, 2011 Engagement Letter
The Committee reviewed the engagement letter with Ms. Linda Abernethy, Partner with
McGladrey & Pullen. Next year, the Committee would like to see a red lined version of
the engagement letter.
A motion was made by Ms. Moreno subject to the addition of the following words on
page 4, under Claim Resolution, “except for those cases in which there has been gross
misconduct or negligence on the part of McGladrey & Pullen, LLP”, seconded by Ms.
Reich, to recommend to the City Council to accept the engagement letter. The motion
carried unanimously by voice vote.
III. Lake Forest Park and Recreation Foundation – Review of Financial Information for the
Fiscal Year Ended September 30, 2010
Mr. Robert Kiely, City Manager explained that due to the recent financial difficulties
experienced by the Gorton Community Center Commission, the City Council directed
the Audit Committee to at least annually review the non profits that have direct or quasi
affiliations with the City. Mr. Kiely stated that the Audit Committee can decide how
often it wants to review the financial statements.
The Committee discussed and agreed:
1. To review the federal and state tax returns, Form 990, Form AG990-IL.
2. To review audits, if available
3. To review annual financial statements prepared on an accrual basis
4. To have representatives come to an Audit Committee meeting once a year
Audit Committee Meeting
Minutes – April 21, 2011
Page 2 of 2
5. To ask internal control questions
6. To have Finance Director Reinertsen update and provide the Committee with the
Foundation Financial Review one page summary.
7. City Manager Kiely and Finance Director Reinertsen will suggest to the Committee
which non profits to closely monitor.
Mr. Mark Milliman, Treasurer with the Parks and Recreation Foundation explained that the
purpose of the foundation is to help fund facility improvements utilized by the Parks and
Recreation Department. He reviewed the profit and loss statements with the
Committee. Mr. Milliman stated that it is the goal of the foundation to have 100%
sponsorship of events. The two main fund raising events are the Festival and Fireworks
and Golf Outing. As Treasurer of the Foundation, Mr. Milliman pays the bills and signs the
checks. The projects are voted upon by the Board and minutes are kept of the
meetings. Mr. Milliman stated that the Parks and Recreation Foundation is following the
internal controls for events which were given to them by their auditors. Mr. Milliman
stated to please contact him at any time if the Committee wanted to see any financial
statements.
The Committee thanked Mr. Milliman and Ms. McKiernan for coming to the meeting.
The Committee agreed to have Ragdale Foundation present financial reports at the July
meeting and Gorton Center Commission present financial reports at the October
meeting. At the July meeting, Ragdale Foundation should present an overview of the
construction project, fund raising update and budget variances.
IV. Other Business: none
V. Opportunity for the Public to Address the Audit Committee: none
VI. Adjournment
There being no further business, Ms. Moreno moved, seconded by Mr. Marwede, to
adjourn the meeting. The motion was approved unanimously by voice vote. The meeting
was adjourned at 5:50 p.m.
Respectfully submitted,
Louise Breckan
Assistant Finance Director