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AUDIT_2023_07_20_MINUTESThe City of Lake Forest AUDIT COMMITTEE Proceedings of the July 20, 2023 Meeting 5:15 p.m. – City Hall, 220 E. Deerpath Minutes I. Call to Order and Roll Call Chairman Janos called the meeting to order at 5:15 p.m. Audit Committee Members present: Chairman Janos, Mr. Dillon, Mr. Hirsch and Mr. Magnuson. Absent: Mayor Tack and Finance Committee Chairman Preschlack. Quorum present. City staff present: Elizabeth Holleb, Finance Director; Diane Hall, Assistant Finance Director; Sally Swarthout, Director of Parks and Recreation and Joe Mobile, Superintendent of Recreation Others present: Joe Lightcap of Baker Tilly, Andrew Trees, Michael Slover, Amy Wagliardo, Bob Skales and Karen McCabe of Gorton Community Center, Michael Cleavenger of Ragdale, Jackie Greca, Joe Oriti, Rick Amos and Cheryl Rohifs of Parks and Recreation Foundation, Cheryden Juergensen of Eder, Casella & Company and Chris Casey, Lake Forest Caucus. II. Consent Agenda Approval of minutes from Audit Committee meeting held on April 20, 2023 Mr. Dillon made a motion to approve the minutes from the April 20, 2023 Audit Committee meeting. The motion was seconded by Mr. Hirsch. The motion carried unanimously by voice vote. The Committee discussed the vacant position on the Audit Committee. III. FY23 Audit Status Mr. Joe Lightcap of Baker Tilly stated the audit had started the previous week and that all documents had been provided. The actuary reports have been received early this year and will begin working on the report. GASB Statement No. 87 is in the processing of having the entries recorded. The Committee discussed if the prior year financial information can be included in the report. This information is provided in the statistical section. They asked if the prior year could be added to the Budget to Actual schedules. Mr. Lightcap has not seen a template for this request. Staffing changes for both Baker Tilly and the City were reviewed with the Committee. Finance Committee Chairman Preschlack entered the meeting at 5:30. IV. Gorton Community Center – Financial Presentation Ms. Amy Wagliardo, Executive Director of Gorton stated they had a great year in 2022, which has continued into 2023 and their strategic plan has been completed. Mr. Michael Slover, Audit Chair/City Director of Gorton reviewed revenues and expenses for the year. The Committee discussed how often the Audit Committee meets and when they meet with the regular board. The strategic plan addresses sustaining a vibrant center, fundraising, programming and marketing. Based on marketing, with many new families in Lake Forest, marketing is provided through mailings, the Chamber and a block party. The Committee discussed the financials with an increase of $400k in contributions and funds moving from restricted to unrestricted. The question was asked if the City can provide any assistance to Gorton. The City includes Gorton programs in the City’s Friday e*newsletter. The Committee discussed measurements to see how programs are doing, lessons learned and they have been waiting on a special use permit from the City for the patio. V. Ragdale Foundation – Financial Presentation Ms. Cheryden Juergensen of Eder, Casella & Company stated the audit went well with no material weaknesses and internal controls were good. The Committee discussed including the previous year’s information to the packet. Mr. Michael Cleavenger, Executive Director of Ragdale reviewed $2.0 million in contributions were received this year. Ragdale is in the process of a capital campaign to raise $6.5 million. They need to reestablish with previous doners for operating costs. The City is loaning the Ragdale Foundation up to $2.0 million to provide cash flow while capital pledges are received. The Committee discussed staffing at Ragdale and if there are any programs for the community. Ragdale does not conduct events but provides presentations at the Ragdale Ring. VI. Parks and Recreation Foundation – Financial Presentation Mr. Joe Oriti of the Parks and Recreation Foundation provided an overview of the Foundation’s financials. He stated Wild Life Discovery contributions will be used to clean up the site. The Foundation will be raising funds to assist with the boardwalk project. Timing of the project will depend on fundraising. In anticipation of the project moving forward, the City will install the supports for the boardwalk while completing the bluff restoration project. The Foundation is registering with the state to be eligible for grants. The Committee discussed how the Foundation came back from last year’s cancellation of the 4th of July event. This year’s events have been scaled back and an emphasis has been placed on being mindful of expenses. They are currently working on the music festival and tree lighting ceremony. VII. Other Business Foundation Summary – The Committee discussed developing a community fund to raise money for organizations. Develop a dashboard for the packet to show multi-year financial information. Foundation Financial Review – No discussion Ongoing discussion re. Foundation Presentation Format – A draft list was prepared. The Committee discussed how to have Foundations present the information. The audit will be presented by Chairman Janos at the November 6th City Council meeting. VIII. Opportunity for Public to Address the Audit Committee – No one requested to address the Audit Committee IX. Adjournment There being no further business, a motion was made by Mr. Hirsch to adjourn the meeting. The motion was seconded by Mr. Dillon. The motion was approved unanimous by voice vote. The meeting was adjourned at 7:32 pm. Respectfully submitted, Diane Hall Assistant Finance Director