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AUDIT_2023_04_20_MINUTESThe City of Lake Forest AUDIT COMMITTEE Proceedings of the April 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 5:17 p.m. Audit Committee Members present: Chairman Janos, Mr. Dillon, Mr. Hirsch, Mr. Magnuson, Mr. Mieling and Finance Chairman Morris. Absent: Mayor Pandaleon. Quorum present. City staff present: Elizabeth Holleb, Finance Director; Diane Hall, Assistant Finance Director Others present: Joe Lightcap of Baker Tilly II. Consent Agenda Approval of minutes from Audit Committee meeting held on January 19, 2023 Approval of Audit Committee Meeting Dates for FY24 The Committee discussed supplemental insurance for cyber security. The Committee requested the IT Department present to the Audit Committee annually on the City’s security. Mr. Hirsch made a motion to approve the minutes from the January 19, 2023 Audit Committee meeting and the approval of Audit Committee meeting dates for FY24. The motion was seconded by Mr. Dillon. The motion carried unanimously by voice vote. III. Audit Engagement Letter for FY2023 Audit Mr. Joe Lightcap of Baker Tilly stated the engagement letter is similar to the FY2022 audit. The section covering Covid-19 has been removed. The City will be required to have a Single Audit for grant expenditures. The engagement letter includes references to other services Baker Tilly provides the City that do not conflict with the City’s audit. The dates of the audit were provided. The Committee requested a red-line copy of the engagement letter to better see changes made. The audit will be conducted primarily remotely, but audit staff will be onsite for specific testing. Joe provided an update on staff changes on the audit. The City’s Staff Accountants will be preparing 80% of the audit work. IV. Parks and Recreation Foundation – Financial Presentation The presentation has been deferred until July. V. Discussion of Audit Committee and Financial Presentation Format The Committee discussed a potential template of questions to be provided to Foundations to include in their presentations. They discussed the potential of standardizing the Chart of Accounts for each Foundation to provide an easier comparison. Mr. Lightcap was asked if he has seen this in other not-for- profits. Mr. Lightcap will check with others at Baker Tilly. Ms. Tara Janos, Chairman will send a template to Ms. Holleb to distribute to Committee members for review. VI. Other Business Foundation Summary – No discussion Foundation Financial Review – Ms. Holleb noted Ragdale has received their first loan installment of $300k and can receive up to 5 loan payments within 3 years. Repayments will be over 5 years. Statement of Economic Interests – Audit Committee members are not required to file this statement. Recognize Service of Mayor Pandaleon, Finance Chairman Morris and Committee Member Mieling – Staff thanked the members for their service. VII. Opportunity for Public to Address the Audit Committee – No one requested to address the Audit Committee VIII. Adjournment There being no further business, a motion was made by Mr. Hirsch to adjourn the meeting. The motion was seconded by Mr. Mieling. The motion was approved unanimous by voice vote. The meeting was adjourned at 6:05 pm. Respectfully submitted, Diane Hall Assistant Finance Director