AUDIT_2025_10_16_MINUTESThe City of Lake Forest
AUDIT COMMITTEE
Proceedings of the October 16, 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. Knauff, Ms. Larisey, Mr. Nowlin and Mr. Durkin via Zoom. Absent: Finance Committee Chairman
Weber and Mayor Tack. Quorum present.
City staff present: Katie Skibbe, Finance Director; Diane Hall, Assistant Finance Director; Mark Krygeris, Staff
Accountant; Jamese Scott, Staff Accountant
Others present: Joe Lightcap of Baker Tilly
There was one in attendance in the audience
Introductions were provided for new member Mr. Knauff
II. Consent Agenda
Approval of Minutes from Audit Committee Meeting Held on July 17, 2025:
Ms. Larisey made a motion to approve the minutes from the July 17, 2025 Audit Committee meeting.
The motion was seconded by Mr. Nowlin. The motion carried unanimously by voice vote.
III. Review Draft Annual Comprehensive Financial Report for the Fiscal Year Ended April 30, 2025
Ms. Diane Hall, Assistant Finance Director, reviewed a summary of highlighted areas of the Annual
Comprehensive Financial Report, including significant changes compared to FY24. This included the
donation of the RT 41/Deerpath storm water pumping station to the City in FY24 resulting in reductions in
contributions/donations. Interest income decreased in FY25 as a result of lower interest rates. With the
anticipation of interest rates being reduced, the City increased investments in CD’s and US Treasuries to lock
in favorable longer-term interest rates. Surplus revenues over expenses in the General Fund were
designated to be transferred in FY26 to the Capital Fund to provide additional funding for the repurposing of
1925 Field Ct as a new police station. The Cities OPEB liability increased with a required full actuary
valuation and the addition of a new PSEBA to the calculation.
The Committee discussed the IMRF, Police and Fire funding ratios and the differences between IMRF and
the Police/Fire pensions. The City has been proactive in providing actuary calculated contributions based on
recommendations from the City’s Pension Subcommittee to reduce required contributions in the future.
Information provided in the Notes to the Financial Statement for IMRF is provided to the City through
IMRF’s actuary report. The City will be imposing a 1% grocery tax effective January 1st to replace the state
eliminated grocery tax. The City’s medical insurance rate increases, long-term forecasting and projected
impacts on the City for upcoming GASB pronouncements were reviewed
The Committee discussed a recommended change to the report to update language regarding self-
insurance.
IV. Review Draft of Report to the Audit Committee as Prepared by Baker Tilly Virchow Krause LLP
Mr. Joe Lightcap of Baker Tilly provided an overview of the Annual Comprehensive Financial Report, Report
to the Audit Committee, TIF Compliance Letter and Single Audit Report. The audit went well with no
unusual transactions identified, and internal controls are good. A clean/unmodified opinion was provided
for the audit. The main program for the Single Audit was ARPA funding for the Ahwahnee Storm Sewer
project.
The Committee discussed internal controls for the Finance Department. The City’s financial software BS&A
has good internal controls in place. An update was provided on the Baker Tilly and new firm merger
completed earlier in the year. No issues have been found on the government side of the company.
V. Executive Session
The Committee elected not to adjourn into executive session.
VI. Other Business
Foundation Summary – No changes since the July 2025 meeting.
Foundation Financial Review – January will restart the foundation presentations.
The Committee discussed that a Request for Proposals will need to be conducted this year for auditing
services and the Audit Committee will be conducting interviews at the January meeting. This process is
completed every five years. The City does not have a requirement to change auditors or partners in charge.
A request was made to verify if foundations presented at the meeting when interviews were held.
Annual Committee Chair Report to the City Council – Monday November 3, 2025 - City staff will work with
Chairman Dillon to prepare the November 3rd presentation to the City Council. A draft of the presentation
will be sent to Committee members for review.
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 Ms. Larisey to adjourn the meeting.
The motion was seconded by Mr. Nowlin. The motion was approved unanimously by voice vote. The
meeting was adjourned at 6:31 p.m.
Respectfully submitted,
Diane Hall
Assistant Finance Director