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AUDIT_2025_04_17_MINUTESThe City of Lake Forest AUDIT COMMITTEE Proceedings of the April 17, 2025 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 5:17 p.m. Audit Committee Members present: Chairman Dillon, Mr. Durkin, Ms. Larisey. Absent: Mr. Nowlin, Finance Committee Chairman Weber and Mayor Tack. Vacant: One Committee Member Seat Quorum present. City staff present: Diane Hall, Interim Finance Director; Mark Krygeris, Staff Accountant; Jamese Scott, Staff Accountant; Mike Wick, Director of Parks and Recreation; Joe Mobile, Superintendent of Parks and Recreation Others present: Cynthia Park of Baker Tilly; Parks and Recreation Foundation, Jackie Greca; Brian Larisey, Rick Amos. II. Consent Agenda Approval of Minutes from Audit Committee Meeting Held on January 16, 2025: There was a question regarding CROYA funding/investment on page 1 of the minutes. The response was emailed. Ms. Larisey made a motion to approve the minutes from the January 16, 2025, Audit Committee meeting. The motion was seconded by Mr. Durkin. The motion carried unanimously by voice vote. Approval of FY26 Audit Committee Meeting Dates: - Thursday, July 17, 2025 – 5:15 p.m. – City Hall - Thursday, October 16, 2025 – 5:15 p.m. – City Hall - Thursday, January 15, 2026 – 5:15 p.m. – City Hall - Thursday, April 16, 2026 – 5:15 p.m. – City Hall Ms. Larisey made a motion to approve the Audit Committee Meeting Dates. The motion was seconded by Mr. Durkin. The motion carried unanimously by voice vote. III. FY2025 Audit Engagement Letter Mr. Dillon introduced the draft engagement letter for the FY2025 audit provided by Baker Tilly. Cynthia Park of Baker Tilly attended the meeting to answer questions from the Committee. Ms. Park reviewed audit timing (June 2–4 Interim and July 7-25 Fieldwork) and new procedures, including the implementation of GASB 101 regarding compensated absences. The new rule changes how unused sick time liabilities are estimated, shifting to a LIFO or FIFO approach based on historical usage data. Ms. Park also confirmed that a Single Audit would again be required due to federal expenditure levels. The letter included updates to compliance language related to Single Audits and legal disclosures regarding equity ownership. The Committee asked for clarification on management’s responsibility to notify the auditors of any entity owning 20% or more equity. There was discussion about the Baker Tilly corporate structure and fee schedule. The FY2025 fee increased from $71,490 to $73,630 (3%). Ms. Larisey made a motion to approve the FY2025 engagement letter. The motion was seconded by Mr. Durkin. The motion carried unanimously by voice vote. IV. Parks and Recreation Foundation – Financial Presentation Chairman Dillon reiterated the role of the Audit Committee as one of support, not oversight, for foundation activities. Presenters included: - Jackie Greca - Brian Larisey (Treasurer) - Rick Amos - Mike Wick, Parks and Recreation Director - Joe Mobile, Superintendent Ms. Greca presented the Foundation’s fundraising efforts, which support City events such as: - Golf Outing - Fourth of July Celebration - Tree Lighting Ceremony Highlighted projects included the Beach Pathway, with approximately $1.577 million in cash/equivalents earmarked for that project. A private donor contributed roughly 50% of that total. $136,000 is expected to be transferred by fiscal year-end (April 30). Tree lighting vendor expenses were prepaid. Main sponsors, such as Lake Forest Bank and Fields, were recognized for sustaining support. There was a discussion about sponsorship risk and the Foundation's plan to improve marketing efforts and increase donor engagement. The Foundation has redesigned its sponsorship packages and is working on community visibility. The Committee discussed the discontinuation of the music festival in 2023 due to underperformance. Foundation Contributions and Purchases: - Grill stored at the golf course for use at events - Boat for the sailing program - $5,000 in baseball equipment for the City-run program - Partial support for a proposed batting cage project (estimated cost: $84,000) Volunteer efforts were discussed. The Foundation uses ambassadors and grassroots outreach, with about 75–80% of event staffing support coming from the City V. Police Foundation – Financial Presentation Deferred to the July 2025 meeting at the request of Deputy Police Chief Kevin Zelk due to a scheduling conflict. VI. Other Business Foundation Summary – No changes since the January 2025 meeting. Foundation Financial Review – Updated for Parks and Recreation Foundation. IT Finance Committee Update – Mr. Cameron Burrel, Interim IT Director, submitted an update: 1. Following feedback on the cybersecurity dashboard, a revised version was presented to City Council at the March budget workshop. 2. Staff continue to research the adequacy of current cybersecurity insurance and have contacted neighboring municipalities for benchmarking data. 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. Durkin to adjourn the meeting. The motion was seconded by Ms. Larisey. The motion was approved unanimously by voice vote. The meeting was adjourned at 6:10 p.m. Respectfully submitted, Mark Krygeris Staff Accountant