AUDIT 2009/04/16 Minutes
The City of Lake Forest
AUDIT COMMITTEE
Proceedings of the April 16, 2009 Meeting
5:15 p.m. - Municipal Services Building 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, Marwede, Sweet, Reich and Mayor Rummel (ex-officio). Absent: Mr. Kirk
Johnson and Finance Committee Chairman Grumhaus (ex-officio). Quorum present.
City staff present: Robert Kiely, City Manager; Kathleen Reinertsen, Finance Director; Louise
Breckan, Assistant Finance Director, Diane Hall, Senior Accountant; Kris Myscich, IT Director
and Joseph Gabanski, Network Administrator.
Others present: Michael Crowe and Adam Rujan with Plante & Moran and Linda Abernethy,
Partner with McGladrey & Pullen.
Number present in the audience: none.
II. Consent Agenda
Approval of minutes from the Audit Committee held on October 16, 2008
Ms. Reich made the motion to approve the October 16, 2008 minutes. The motion was seconded
by Mr. Sweet. The motion carried unanimously by voice vote.
III. IT Audit Presentation
Ms. Kris Myscich, IT Director stated that an IT audit was conducted four years ago. She stated
that the City engaged Plante & Moran to perform the audit. She stated that there are
recommendations in the report that the Audit Committee can approve at tonight’s meeting or at
future meetings.
Mr. Michael Crowe, Plante & Moran, reviewed the report’s highpoints and recommendations.
Ms. Myscich stated that there is a recommendation from the Plante & Moran report to upgrade
the Microsoft Exchange Server and she would like approval from the Audit Committee at this
meeting so that she can present a recommendation for approval for this upgrade at a City Council
meeting.
Mr. Marwede made the motion, which was seconded by Ms. Reich, to present a recommendation
to purchase an upgrade to the Microsoft Exchange Server at a City Council meeting. The motion
carried unanimously by voice vote.
Committee members agreed that Plante & Moran should look at how the IT area is secured in the
new MS Building.
Chairman Jacobs stated that any open items should come back as a report from Ms. Myscich and
be presented at the next Audit Committee meeting.
IV. Management Letter Status Review
Audit Committee Meeting
Minutes – April 16, 2009
Page 2 of 2
Ms. Reinertsen updated the committee.
V. Audit Plan
Ms. Linda Abernethy, McGladrey and Pullen, reviewed the new GASB statements that need to be
implemented in future fiscal years. She stated that this year, GASB 45, Other Post Employment
Benefits other than Pensions (OPEB) disclosures needs to be included in the financial report.
VI. Other Business
Ms. Reinertsen stated that the City has experienced a decrease in water revenue over the past
year. Expenses were cut but water revenue continued to decrease. It was decided to hire
Virchow, Krause & Company to perform an audit. The company recommended several processes
which the City will implement. The City will begin monitoring large decreases and increases in
water consumption beginning in July 2009.
Ms. Reinertsen announced that the City maintained its AAA rating from Moody’s for the bond
issue that will be bid on Monday April 20, 2009.
VII. Adjournment
There being no further business, a motion was made by Ms. Reich to adjourn the meeting. The
motion was seconded by Mr. Sweet. The motion was approved unanimously by voice vote. The
meeting was adjourned at 6:35 p.m.
Respectfully submitted,
Louise Breckan
Assistant Director of Finance