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AUDIT_2024_07_18_MINUTESThe City of Lake Forest AUDIT COMMITTEE Proceedings of the July 18, 2024 Meeting 5:15 p.m. – City Hall, 220 E. Deerpath Minutes I. Call to Order and Roll Call Chairman Dillon called the meeting to order at 5:15 p.m. Audit Committee Members present: Chairman Dillon, Mr. Durkin, Mr. Hirsch, Ms. Larisey and Mr. Nowlin. Absent: Finance Committee Chairman Weber and Mayor Tack. Quorum present. City staff present: Elizabeth Holleb, Finance Director; Diane Hall, Assistant Finance Director; Mark Krygeris, Staff Accountant; Jamese Scott, Staff Accountant; Joe Mobile, Superintendent of Recreation. Others present: Joe Lightcap, Baker Tilly, Paul Sacaridiz, Heather Sannes, Brett Taylor and Cathy Ramsey of the Ragdale Foundation, Andrew Trees, Michael Slover, Bob Scales, Amy Wagliardo and Shona Geier of the Gorton Community Center, Jackie Greca, Brian Larisey and Rick Amos of the Parks and Recreation Foundation and Cheryden Juergensen of Eccezion. Chairman Dillon welcomed new Committee member Nowlin. II. Consent Agenda Approval of Minutes From Audit Committee Meeting Held on April 18, 2024 Mr. Hirsch made a motion to approve the minutes from the April 18, 2024 Audit Committee meeting. The motion was seconded by Mr. Durkin. The motion carried unanimously by voice vote. III. FY24 Audit Status Mr. Joe Lightcap of Baker Tilly stated the Engagement Letter was updated based on Audit Committee recommendations. In addition, language was added to include a Single Audit, and this will not be required. He stated that everything was ready the first day and no issues have been identified at this time. Ms. Elizabeth Holleb, Finance Director stated that this was the second year Mark and Jamese prepared audit schedules in preparation for the audit. IV. Ragdale Foundation – Financial Presentation Mr. Dillon read a statement as to the purpose of the Audit Committee as it relates to each Foundation. Mr. Paul Sacaridiz, Executive Director of Ragdale reviewed the presentation provided in the packet. The Foundaton received a clean audit opinion. The capital campaign raised $6.8m in donations. The Committee discussed the donations are coming in from a more diversified donor base. Expenses to raise money should be reduced now that the campaign is ending. Risk management is mitigated by separation of duties. The Committee discussed the loan with the City that is currently at $900k. Additional funds will be requested to cover pledges. A repayment plan to be put in place. V. Gorton Community Center – Financial Presentation Mr. Dillon read a statement as to the purpose of the Audit Committee as it relates to each Foundation. Mr. Michael Slover and Cheryden Juergensen of Eccezion provided an update on the annual audit. The audit went well with some changes in Gorton staffing. A clean opinion was received and no findings. The Committee provided comments on the slides provided in the packet. Programs have increased since Covid. Staff have focused on becoming a more regional location for programming. The budget does include a draw down of the endowment, but this is rarely used. The Committee discussed the patio project, where a portion is covered by the City and the increased size of the patio is covered by Gorton. VI. Parks and Recreation Foundation – Financial Presentation Mr. Dillon read a statement as to the purpose of the Audit Committee as it relates to each Foundation. Jackie Greca of the Foundation provided an overview of events the foundation conducts each year to raise funds for Parks and Recreation. Mr. Rick Amos of the Foundation reviewed the fundraising events. The music festival has not been successful and has been placed on hold. Based on a survey, 78% of respondents prefer the 4th of July event at Deerpath Park. Turnout was lower than expected, and it is too early to tell how the event did financially. They are looking at starting a membership program. Mr. Brian Larisey of the Foundation shared that the accounting firm was not pushed to keep the financial reporting deadline, and this will be taken care of for next year. The Committee discussed the slides did not include requested financial statistics. The Foundation is trying to reduce expenses. The new membership drive is to develop a special member only opportunities with the goal of generating ongoing annual revenue. VII. Other Business Foundation Summary – No discussion Foundation Financial Review – No discussion Update from Innovations & Technology Team re. Cybersecurity Dashboard - The Committee is looking for metrics/benchmarking. The metrics should measure something, such as success rate in blocking attempts to penetrate systems. Ongoing Discussion re. Foundation Presentation Format – Finance to confirm all data included in presentation. Lake Forest Parks and Recreation was missing three-year financials. Communicate to Foundations to assume the Committee has read the materials. Presentations no more than 20 -25 minutes providing highlights, recap materials, risk management and three-year financials. 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. Durkin to adjourn the meeting. The motion was seconded by Mr. Nowlin. The motion was approved unanimous by voice vote. The meeting was adjourned at 7:16 pm. Respectfully submitted, Diane Hall Assistant Finance Director