AUDIT_2018_04_19_MINUTESThe City of Lake Forest
AUDIT COMMITTEE
Proceedings of the April 19, 2018 Meeting
5:15 p.m. – City Hall, 220 E. Deerpath
City Hall Conference Room
Minutes
I. Call to Order and Roll Call
Chairman Sparrow called the meeting to order at 5:16 p.m. Audit Committee Members present:
McFadden, Stieber, Mayor Lansing and Finance Chairman Morris. Absent: Mr. Logan and Mr. Smith.
Quorum present.
City staff present: Elizabeth Holleb, Finance Director; Diane Hall, Assistant Finance Director: Sally
Swarthout, Director of Parks and Recreation; Joe Mobile, Superintendent Parks and Recreation
Others present: Joe LIghtcap of Baker Tilly; PJ O’Neil of the Parks and Recreation Foundation; Joanne
Miller and Maria Warden of the Elawa Foundation.
II. Consent Agenda
Approval of minutes from Audit Committee held on April 20, 2017 and October 19, 2017 and
meeting notes from January 18, 2018
Mr. Stieber made a motion to approve the April 20, 2017 and October 19, 2017 minutes and meeting
notes from January 18, 2018. The motion was seconded by Mr. McFadden. The motion carried
unanimously by voice vote.
Approval of the Committee meeting dates for Fiscal Year 2019
Mr. Stieber made a motion to approve the meeting dates for fiscal year 2019. The motion was
seconded by Mr. McFadden. The motion carried unanimously by voice vote.
III. FY2018 Audit Engagement Letter
Mr. Joe Lightcap of Baker Tilly presented two engagement letters for review. He stated the first was
for the regular audit and the second for review of the contingency account procedures. He stated Ms.
Holleb, Finance Director has requested that any comments or recommended changes be
communicated to the Committee.
The Committee discussed the requested additional procedures and reviewed the proposed audit
dates.
Ms. Holleb stated revised procedures will be approved for the contingency accounts effective May 1,
2018, therefore the review will be based on previous procedures.
Mr. McFadden made a motion to approve the engagement letters for fiscal year 2018. The motion
was seconded by Mr. Stieber. The motion carried unanimously by voice vote.
IV. Elawa Farm Foundation – Financial Presentation
Mr. Sparrow read a brief statement as to the purpose of the Audit Committee as it relates to each
Foundation.
Ms. Joanne Miller, Executive Director stated the 2017 audit has been completed and the annual 990
has been filed. She reviewed highlights from 2017. She stated the foundation has adopted restricted
cash policy. She stated they are working to retain current sponsor and attract new ones with a new
sponsorship program. She stated funding needs to be set aside for future improvements to the
existing buildings.
V. Park and Recreation Foundation – Financial Presentation
Mr. Sparrow read a brief statement as to the purpose of the Audit Committee as it relates to each
Foundation.
Mr. PJ O’Neil reviewed the events held during the year. He stated a review of the Parks and
Recreation Master Plan will take place this year. A firm has just been retained to complete the
project. He stated the foundation has partnered with the City to provide additional improvements to
the golf course, including a halfway house. Additional improvements are being considered. The City
will be transferring a $500,000 donation received to the foundation.
Ms. Holleb stated the City has provided $1.2 million in revenue enhancing improvements. The health
of the golf course continues to be reviewed by optimizing revenues and reducing expenses.
VI. Other Business
Foundation Summary – No changes have been made
Foundation Financial Review – All foundations have been updated and are complying with all
requirements.
Accounting Policies and Procedures Update – Ms. Holleb provided an update on information that has
been provided to the Finance Committee regarding purchasing procedures.
The Committee discussed the contingency account policies and audit fees approved by the City
Council.
Appreciation for Service to the Audit Committee – Andy Logan – Mr. Logan was not in attendance at
the meeting.
VII. Opportunity for Public to Address the Audit Committee – None
VIII. Adjournment
There being no further business, a motion was made by Mr. Stieber to adjourn the meeting. The
motion was seconded by Mr. McFadden. The motion was approved unanimously by voice vote. The
meeting was adjourned at 6:05 p.m.
Respectfully submitted,
Diane Hall
Assistant Finance Director