Finance Committee

Finance Committee Meeting Conference Room 212 September 23, 2010 7:30 a.m. Attendance Committee Members Present: Trustee Hynes, Trustee Weel, Village Manager Van Geem and Finance Director Neukirch Committee Members Absent: Mayor Callero Non Committee Members Present: Rosemary Palicki and Marilynn Marusek Meeting Opened Meeting opened at 7:35 a.m. Approval of Minutes The minutes from the August 10, 2010 Finance Committee meeting were approved. Motion made, all concurred. Review of Proposals for IT Audit The Committee reviewed the two proposals submitted by Crowe Consulting Group and Jefferson Wells to perform the Village’s IT audit. MIS Director Bill Shaw provided a summary memo that provided a comparison between the two proposals. Crowe’s proposal was significantly lower and their experience seemed to focus on smaller organizations like the Village as opposed to Jefferson Wells’ who seem to focus on larger organizations. The field work for the audit will probably be done in November with the results being presented to the Village Board in January or February. The Committee’s recommendation to the Board will be to accept Crowe’s proposal for sections 1 (Administration and Management of Technology), 2 (Technology Security and Protection) and 3 (Benchmark Study), not to exceed $20,000 (as budgeted) and postpone items 4 (User Satisfaction Survey) and 5 (Information Technology Use by Department) until the Spring if the Board determines they would like to pursue the audit in those areas after seeing the results of the first phase of the audit. The Committees recommendation will be included in the Board packets for the September meeting but will not be voted on until the October meeting. FY 2010 Draft Audit Update Finance Director Neukirch provided the Committee with an update of the progress on the FY 2010 Village annual audit. A summary and explanation of the differences from what was projected at budget time was provided for the General, MFT, Water and Risk Management Funds. The audit will be completed by the end of October. Internal Controls Audit Update The Committee received the draft engagement letter provided by Selden Fox. The Committee reviewed and approved the letter confirming that investments will be reviewed going back 10 years and the auditors will review the letter provided by the Ethics Committee concerning the Village’s Investment Policy. The draft engagement letter will be provided to the Village Board in their September Board packets. Debt Refunding Update Finance Director Neukirch provided an update on results of the bond sale for the 2010A refunding and other developments with the refunding since the last Committee meeting. The net present value savings came in at $313,060.38 which is significantly more than what was previously estimated. Moody’s confirmed the Village’s bond rating at AA1. The Committee was very pleased with these results and Trustee Weel will provide an update to the Village Board at the September meeting. Tax Levy The Committee began preliminary discussions on the direction staff should be given concerning the tax year 2010 property tax levy. Various issues were discussed and the Committee decided that it was appropriate to have a Pre- Board meeting in October with the entire Board to discuss the issues involved with this topic. Revised Purchasing Manual Finance Director Neukirch handed out the current and revised Purchasing Manual for the Committee to review. Trustee Weel recommended that these two  documents be reviewed as part of the internal controls audit. After the Committee has reviewed these documents, they will be presented to the Board for review and adoption. Other Business Trustee Hynes requested that Village staff conduct a 6 month budget review with the Board. Finance Director Neukirch expressed reservations on the usefulness this review would have since it would occur so close to the annual review that is included during the budget process. In addition, at the midway point it is often difficult to draw any useful conclusions since the year is only half over and many expenses and revenues do not follow a linear path. But staff will prepare a presentation and discuss the format with the Finance Committee at future meetings. Adjournment A motion to adjourn was made, seconded and all concurred. The meeting adjourned at 9:20 a.m. Next Meeting The next Finance Committee meeting will be October 28, 2010 at 7:30 a.m. Prepared by Scot Neukirch on 9/23/10