AUDIT_2021_07_15_MINUTESThe City of Lake Forest
AUDIT COMMITTEE
Proceedings of the July 15, 2021 Meeting
5:15 p.m. – City Hall, 220 E. Deerpath
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, Mr. Dillon, Mr. Magnuson and Mr. McFadden. Absent: Ms. Janos, Mayor
Pandaleon and Finance Chairman Morris. Quorum present.
City staff present: Elizabeth Holleb, Finance Director and Diane Hall, Assistant Finance Director
Others present: Joe Lightcap of Baker Tilly, Jack Westerman, Nick Bothfeld, Karen Rode, Amy
Wagliardo and Cheryden Juergensen of the Gorton Foundation, Elizabeth Boyd and Scott Turner of
the Ragdale Foundation.
II. Consent Agenda
Approval of minutes from Audit Committee held on April 15, 2021
Mr. McFadden made a motion to approve the April 15, 2021 minutes. The motion was seconded by
Mr. Dillon. The motion carried unanimously by voice vote.
III. FY21 Audit Status
Mr. Joe Lightcap of Baker Tilly stated they were in the process of final fieldwork. Outstanding items
include Police, Fire and OPEB actuary reports. If the reports are not received during fieldwork,
additional time would be allocated to complete the audit. The City will have a Single Audit, with
testing to be conducted in November. The report is due within nine months after fiscal year-end and
will be presented to the Audit Committee in January.
IV. Gorton Community Center – Financial Presentation
Mr. Sparrow read a brief statement for Gorton and Ragdale as to the purpose of the Audit Committee
as it relates to each Foundation.
Mr. Nick Bothfeld, Finance Chair stated Gorton is doing very well. The audit was presented to the
board with no issues.
Ms. Cheryden Juergensen of Elder, Casella & Company stated the audit went very well with no
problems.
The Committee discussed status of any construction and ongoing maintenance of the building.
Gorton did very well during the pandemic and was able to keep staff to run programs. They are doing
very well in 2021. They discussed the policy to draw down the endowment, which is allowed at 3% a
year and must be approved by the Board. The draw down is budgeted each year, but is not always
taken.
The Board is currently putting $50k a side each year in the event the projector fails. Replacement is
estimated at $500k.
V. Ragdale Foundation – Financial Presentation
Ms. Elizabeth Boyd, Board President stated Ragdale was able to do ok in 2020 because of the use of
PPP loans during the pandemic. They were able to keep staff, but not at full time status.
The Committee discussed reduced revenue in 2020 was due to resident artists sent home. Expenses
were reduced to compensate for the lost revenue. They have started residency on a limited basis.
Normal capacity is 13 and the goal is to have 6 by year end. A new dance studio is in the process of
construction and the purchase of the adjoining property.
Ms. Elizabeth Holleb, Finance Director stated the City is working with the Foundation to provide a loan
to advance fund long term pledges for Ragdale’s capital program.
VI. Other Business
Foundation Summary – Ms. Holleb stated no changes have been made to the schedule. Ragdale’s
request for a loan from the City has been approved in concept, but will need to be formally approved
by the City Council to move forward.
Foundation Financial Review – Ms. Elizabeth Holleb stated no changes have been made.
VII. Opportunity for Public to Address the Audit Committee – No one in attendance
VIII. Adjournment
There being no further business, a motion was made by Mr. Magnuson to adjourn the meeting. The
motion was seconded by Mr. Dillon. The motion was approved unanimous by voice vote. The
meeting was adjourned at 5:47 pm.
Respectfully submitted,
Diane Hall
Assistant Finance Director