AUDIT_2019_01_17_MINUTESThe City of Lake Forest
AUDIT COMMITTEE
Proceedings of the January 17, 2019 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 5:15 p.m. Audit Committee Members present:
Chairman Sparrow, Magnuson, McFadden, Smith and Finance Chairman Morris. Absent: Mr. Stieber
and Mayor Lansing. Quorum present.
City staff present: Elizabeth Holleb, Finance Director; Diane Hall, Assistant Finance Director; Sally
Swarthout, Director of Parks and Recreation; Todd Nahigian, Croya Manager; Jill Becker, Senior
Resources Manager and Rob Copeland, Deputy Police Chief
Others present: Michelle Vincencio of Eder, Casella & Co.; Paul Lemieux, President Senior Foundation;
Steve Potsic, Vice-President Senior Foundation; Mark Dillon, Treasurer Senior Foundation and John
Ormsby, Police Foundation
II. Consent Agenda
Approval of minutes from Audit Committee held on October 18, 2018
Mr. McFadden made a motion to approve the October 18, 2018 minutes. The motion was seconded
by Mr. Magnuson. The motion carried unanimously by voice vote.
III. Lake Forest-Lake Bluff Senior Citizens Foundation – Financial Presentation
Mr. Sparrow read a brief statement as to the purpose of the Audit Committee as it relates to each
Foundation.
Mr. Paul Lemieux, President reviewed the responsibilities of the foundation. He stated an audit was
not conducted, as donations were under $300,000. He reviewed a population survey and stated
affordable housing for seniors is needed.
Mr. Steve Potsic, Vice President reviewed what the foundation does for the senior citizens. He stated
five affordable senior cottages are proposed to be constructed on the Grove School Campus. He
stated the Foundation is working with the City on this project. He reviewed the financial statements
for the Foundation.
The Committee discussed the allocation of investments. They discussed the proposed senior cottage
project and the anticipated funding needed to move forward. The Foundation is working with
Community Partners to look for grants.
IV. Police Foundation – Financial Presentation
Mr. Sparrow read a brief statement as to the purpose of the Audit Committee as it relates to each
Foundation.
Mr. Rob Copeland, Deputy Police Chief reviewed the Foundations financials. He reviewed projects the
Foundation has funded, including Stop the Bleed that provides trauma kits throughout the City. He
stated the Foundation is assisting with the City’s canine program by providing the needed vehicle and
equipment.
The Committee requested Police Chief Karl Walldorf present at the City Council meeting to discuss the
program.
V. Croya Foundation – Financial Presentation
Mr. Sparrow read a brief statement as to the purpose of the Audit Committee as it relates to each
Foundation.
Ms. Michelle Vincencio, Eder, Casella and Co. provided an overview of the foundations financials. She
stated two fixed assets were purchased and will be depreciated over the life of the asset. Form 990EZ
was filed on time.
Mr. Todd Nahigian reviewed changes to the Foundations Board. He reviewed services the Foundation
provides to Croya students. He reviewed the bi-annual fund raiser to be held. He stated in 2019 an
Eagle Scout will be working on a space in the basement to convert to a study area and lounge. The
Foundation will assist with the cost of the project.
VI. Executive Session
Executive Session was not held.
VII. Approval of Executive Session Meeting Minutes
Mr. McFadden made a motion to approve the October 18, 2018 Executive Session minutes. The
motion was seconded by Mr. Magnuson. The motion carried unanimously by voice vote.
VIII. Auditor Recommendation for FY2019 and FY2020
Ms. Elizabeth Holleb, Finance Director stated the City conducted a Request for Proposal (RFP) three
year previously for auditing services. She stated the Audit Committee approved an initial agreement
of three years with the option of two additional years. The City is recommending approving the
additional two years and an RFP to be completed at the conclusion of the five-year term. City Council
would approve the additional years in February.
The Committee discussed the current services provided.
Mr. Magnuson made a motion to approve the two additional years of the audit contract. The motion
was seconded by Mr. Smith. The motion carried unanimously by voice vote.
IX. Other Business
Foundation Summary – The Senior contributions have been updated
Foundation Financial Review – All foundations have been updated.
Status of changes to accounting policies and procedures for Finance Committee 1/22/19 – Ms. Holleb
provided an update with all recommendations having been implemented.
The Committee discussed the final ERP module going live and final training for budget processing was
completed.
X. Opportunity for Public to Address the Audit Committee – No one in attendance
XI. Adjournment
There being no further business, a motion was made by Mr. McFadden to adjourn the meeting. The
motion was seconded by Mr. Magnuson. The motion was approved unanimously by voice vote. The
meeting was adjourned at 6:42 pm.
Respectfully submitted,
Diane Hall
Assistant Finance Director