Police Pension Packet 2010 05-10-10 Yorkville Police Pension Fund Board
804 Game Farm Road
Yorkville, 1160560
(630) 553-4340
S:OOPM on May 10, 2010
Police Department Conference Room
A enda
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Meeting Call to Order:
Roll Call: Present:
Guests:
Communications:
No funds were transferred from checking to the Schwab account since Feb 9, 2010.
Trustee Election Results:
Active Members Results:
Retiree Member Results:
Election of Board Officers
Previous Meeting Minutes: Feb 9, 2010
Corrections/Approval
Treasurer's Reports:
Monthly: as of April 30, 2010
Annual: as of April 20, 2010
Fiscal Year 2010-2011 Budget
Bills for Payment:
Return of Contributions: Jordan Poulos $14,282.08
MVT management fees:
From Schwab #3137-9036 (Jan) $ 4,063.00
Cary Collins: Attorney(Oct -Dec 09) $ 650.00
Actuary Study Ending 4/30/2010 $ 1,500.00
Zabinski Consulting Services Inc $ 400.00
William Powell $ 587.50
Total Bills for Payment: $21,482.58
Investments:
Increase in Old Second Bank minimum balance:
Money transfers from YNB to Charles Schwab & Co
Pay to: Charles Schwab & Co.
Mail to: Institutional Client Service Group
P. O. Box 628290
Orlando, Fl 32862-9906
Progress Reports from Mitchell, Vaught, and Taylor
Police Pension Fund Board
May 10, 2010
Page 2
Unfinished Business:
Improving the IDOI Filing Process:
Acceptance of Zabinski Consulting Services Inc Proposal
Electronic Transfer of Funds: Old Second Checking Account to Schwab Account
SB 1974: Annual Training Documentation for Pension Board Trustees and FOIA Administrators
House Bill 4603: Creditable Service: Buyback Letters for file.
Discussion of the Investment Policy and the Rules and Regulations
Record Retention
New Business:
Retirement: Glen Calvert
Additional Business:
Pension Payment Adjustments:
Next meeting:
Motion to Adjourn:
Year 2010 Meeting Dates: Feb 10, May 10, Aug 10, Nov 9
Yorkville Police Pension Fund Board
804 Game Farm Road
Yorkville, Il 60560
(630) 553-4340
S:OOPM on Feb 9,2010
Police Department Conference Room
Minutes
Attachments:
Meeting Minutes for Nov 10, 2009
Monthly Treasurer's Report as of Jan 31, 2010
April 312009 Actuarial Report Results
Illinois Public Pension Advisory Committee Request dated Nov 20, 2009
Bills for Payment
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Meeting Call to Order: The meeting was called to order at 5:06 PM
Roll CaII:Present: Mr. Overmyer, Officer Pleckham, Mr. Sibenaller, Mr. Dusell, Mr. Powell, Chief Hart
Guests:Mr. Debord, Mr. Yocius, Attorney Collins,Ms. Zabinski,
Harold Martin Board Resignation: Assistant Secretary Martin has resigned due to retirement.
Election of Chief Rich Hart as trustee:A vote was take to elect Chief Hart to the pension board on Feb 9, 2010.
Term of office to be from Jan 31 to May 2010.
A motion was made by Mr. Overmyer(2°d Mr. Dusell)to elect Chief Hart to the position of Assistant Secretary.
Ayes—4,Nays—0
Note: A change in the signature card for the Old Second bank account will be required. Mr. Powell to follow up.
Previous Meeting Minutes: Nov 10, 2009
Corrections/Approval A correction changing Mr. Sibenaller's first name from Glen to Greg.
Motion to Approve: A motion was made by Mr. Sibenaller(2"d Officer Pleckham)to accept the minutes as corrected.
Ayes—5,Nays - 0
Communications:
No funds were transferred from checking to the Schwab account since 11/10/2009.
Monthly Treasurer's Report: as of Jan 31,2010:The Treasurer's report was reviewed
Fund values were reported as:
Cash: $ 398,923.91
Fixed Securities: $ 1,609.529.96
Equities: $ 1.468,998.66
Total Value: $ 3,384,935.01
Motion to Approve: A motion was made by Mr. Dusell (led Mr. Sibenaller)to accept the report as read.
Ayes—5, Nays -0
Bills for Payment:
MVT management fees:
From Schwab#3137-9036 (Jan—March 2010)$3952.00
Cary Collins:Attorney(Oct-Dee 09) $ 650.00
Kelly Zabinski 2009 IDOI filing: Final Payment $ 650.00
William Powell _ $ 175.00
Total Bills for Payment: $ 5427,00
Motion to Approve: A motion was made by Mr. Dusell (2"d Officer Pleckham) to accept the bills of payment
Ayes—5,Nays-0
Investments:
Money transfers from YNB to Charles Schwab & Co
Pay to: Charles Schwab & Co.
Mail to: Institutional Client Service Group
P. O. Box 628290
Orlando, F132862-9906
Progress Reports from Mitchell, Vaught, and Taylor
Unfinished Business:
Improving the IDOI Filing Process:
Discussion with Kelly Zabinski: There was a discussion on information flow to improve the process
of filing the IDOI.
A motion was made to increase her role in the accounting process and filing of the IDOI pending
review of the proposal by Attorney Collins. Ayes—5,Nays - 0
Electronic Transfer of Funds: The process to transfer funds from Old Second Bank to the Schwab
account has been established. Mr. Powell will contact Mr. Owen to try this for the first time.
Actuarial Report as of May 31, 2009. A copy of portions of the Actuarial report ending May 31,
2009 was presented. The report shows a Tax Levy requirement between$519,851.00 and$544,930.00
for fiscal year 2009. Attorney Collins will provide a sample letter used to inform the City of this
requirement.
A motion was made by Mr. Dusell (2"d Mr. Sibenaller)to authorize Mr.Powell to submit the levy amount to the
City. Ayes—5,Nays-0
SB 1974: Annual Training Documentation for Pension Board Trustees
Mr. Powell requested that board members provide documentation of any training that they have
taken to Secretary Dusell.
Attorney Collins will email a registration form to the board members for the training seminar in
Peoria to be held May 11 —May 14.
New Trustee Documents
House Bill 4603: Creditable Service: Buyback Letters for file. Officer Pleckham to follow up.
This item will be carried over to the next board meeting.
Discussion of the Investment Policy and the Rules and Regulations
Attorney Collins will email copies of the revised Investment Policy to the board for their review.
This item will be carried over to the next board meeting.
New Business:
Election of Trustees: The election of active member Trustees will be held in April.
RFP for Investment Manager: Mr. Powell has requested information from the IMTA for sample RFP's
and qualified investment managers. It was pointed out that an RFP is not required until year 2013.
Increase in Old Second Minimum Balance: With pension payments to an additional retiree, it was
suggested that the minimum balance at Old Second Bank be raised from$40,000 to $50,000.
A motion was made by Mr. Overmyer (2°d Officer Pleckham)to approve this increase. Ayes—5,Nays—0
Additional Business:
Illinois Public Pension Advisory Committee Request. The form was completed and given to Attorney
Collins.
IPPFA Annual Spring Conference May 13th & 140: Board members will be attending the IPAC seminar
in Peoria.
Record Retention: Secretary Dusell will request information on record retention from the Illinois
Attorney General.
FOIA Compliance: There was a discussion on FOIA compliance. The following appointments were
made:
A motion was made by Mr. Overmyer(2°d Mr. Sibenaller) to appoint Officer Pleckham as the Open
Meetings Act Administrator.
Ayes—5, Nays—0
A motion was made by Mr. Dusell (2nd Mr. Overmyer)to appoint Mr. Sibenaller as the Security
Administrator.
Ayes—5,Nays—0
A motion was made by Mr. Overmyer(2nd Mr. Sibenaller) to appoint Chief Hart as the FOIA
Administrator.
Ayes—5, Nays—0
The City and County Clerk's office must be notified of these appointments.
Next meeting: Note the change in date-May 10,2010
Motion to Adjourn: A motion to adjourn was made by Mr. Overmyer( 2nd Officer Pleckham) at 6:55 PM.
Ayes—5 Nays - 0
Year 2010 Meeting Dates: Feb 10, M,ay 10, Aug 10,Nov 9 file:Policelagendalminutes Feb 9 2010.doc
United City of Yorkville
,R 800 Game Frame Road
Yorkville, Illinois 60560
EST. 1836 Phone 630-553-1887 William Powell
Fax, 630-553-7575 Treasurer
a
BID ~LE
Treasurer's
Treasurer's Report
(As of April 30, 20 10)
Dollars Percent
Cash: YNB (1) 56,082.61
Schwab 1,582.48
Total Cash: $57,665.09 1.6%
Schwab:
Fixed Securities: 1,944,902.34 53.4%
Equities: (2) _ _ 1,642,905.99 45.0%
Total Assets: $ 3,645,473.42 100.0%
2009 Tax Lew Estimate: $325,000.00
Actual Payments: (paid in 20101 $311,203.26
Estimated monthly deposits: $16,000.00
Estimated monthly retiree payments: $23,000.00
4Am=I-- /L&
William Powell
Treasurer
United City of Yorkville File:T Report 043010.doc
(I) The board has established a$40,000.00 minimum balance
(2) The maximum equity percent is 45 %by statue
5/4/2010 - Page 1
Account Transactions
Yorkville PD Pension
1/1/2010 Through 4/1/2010
Num Date Payee CaLegory Category Amount Running Balance
Opening Balance as of 1/1/2010 ' 77,450.73
Month Ending 1/31/2010
1/3/2010 Interest Deposit Other Income 14.57 77,465.30
1/4/2010 Transfer to DDA Sills (755.67) 76,709.63
1/8/2010 City of Yorkville Retirement Income 8,610.33 85,319.96
1/20/20.10 City of Yorkville Retirement Income 8,132.12 93,452.08
1129/2010 AC IRS USA TAX PAYMENT Taxes (820.78) 92,631.30
1/29/2010 AC UNITED CITY OF YYPD PENSION Miscellaneous (8,063.61) 64,567.69
Total Month Ending 1/31/2010 7,116.96
Month Ending 2/28/2010
211/2010 Interest Deposit Investment Income 17.08 84,584.77
2/1/2010 Transfer to DDA Bills (755.67) 83,829.10
2/9/2010 City of Yorkville Retirement Income 8,179.03 92,008.13
**VOID** 2/9/2010 voided 0.00 92,008.13
218 219/2010 Cary Collins Attorney Fee (650.00) 91,358.13
219 2/9/2010 Kelly Zabinskl Miscellaneous (650.00) 90,708.13
220 2/912010 William Powell Adminsitrative Fee (175.00) 90,533.13
2/22/2010 AC SCHWAB BROKERAGE MONEYlINK Miscellaneous (30,000.00) 60,533.13
2/26/2010 City of Yorkville Retirement Income 7,130.33 67,663.46
2/26/2010 AC UNITED CITY OF YYPD PENSION Miscellaneous (10,542.09) 57,121.37
2/26/2010 AC IRS USA TAX PAYMENT Taxes (1,434.68) 5506.69
Total Month Ending 2/28/2010 (28,881.00)
Month Ending 3/31/2010
3/1/2010 Interest Deposit Investment Income 15.32 55,702.01
3/1/2010 Transfer to DDA Bills (755.67) 54,946.34
3/1/2010 Service Charge Miscellaneous (8.36) 54,937.98
3/2/2010 City of Yorkville Retirement Income 7,632.35 62,570.33
3/19/2010 City of Yorkville Retirement Income 7,128.75 69,699.OB
3/26/2010 AC UNITED CITY OF YYPD PENSION Miscellaneous (14,989.86) 54,709.22
3/31/2010 AC IRS USA TAX PAYMENT Taxes (2,137.34) 52,571.88
Total Month Ending 3/31/2010 (3,114.81)
Month Ending 4/30/2010
4/1/2010 Interest Deposit Investment Income 5.43 52,577.31
4/1/2010 Transfer to DDA Bills (755.67) 51,821.64
Total Month Ending 4/30/2010 (750.24)
i
Grand Total (25,629.09)' 51,821.64
May 11, 2010
To: Police Pension Board
City Council
Subject:Police Pension Activity for Fiscal Year May 1, 2008 to April 30, 2009
(As required by Illinois State Statue 40 ILCS 513- 141)
Fiscal 2007-08 Fiscal 2008-09 Fiscal 2009-10 Fiscal 2010-11
Actual (41301 Actual 4/30) Estimated Actual 4/30) Estimated
Balance as of May 1: 2,156,872.18 2,612,538.50 NIA 2740233.35 NIA
Contributions:
Employees: 182,597.35 196,258.23 210,000 201,873.51 200,000.00
EVW Transfers 0 0 0 0 0
Tax Levy: 275,144.21 297,327.74 325,000 311,203.26 325,000.00
Investment Income: 152262.27 -227377.67 NIA
Total Contributions: 457741.56 493585.97 535000.00 513076.77 525000.00
ExpensesPaid:
Contribution Refunds 22662.66 6176.56 0.00 0.00 33674.27
Supplies: 13.75 19.40 100.00 0.00 100.00
Legal Fees: 3000.00 2400.00 2600.00 2600.00 2600.00
Accounting/Minutes 1692.50 1475.00 1600.00 1412.50 1000.00
Audit Fees: 3000.00 0.00 2150.00 4030.00 3500.00
IDOI Filing Fees: 1000.00 1475.00 1350.00 1300.00 1600.00
Actuarial Fees: 1300.00 1300.00 1500.00 1500.00 1500.00
Investment Fees: 11352.00 12375.00 15000.00 17104.00 19000.00
Pension Seminars 0.00 0.00 1000.00 100.00 2000.00
IDOI Compliance Fee 316.60 431.37 500.00 526.31 600.00
Retirement_Payments 110000.00 112861.12 113880.60 112579.92 275000.00
Total Expenses 154337.51 138513 45 139680.60
Fiscal Year End Balance: 2612538.50 2740233.35 3645473.42
Submitted by. '/'a'- /�, Op
William Powell: Treasurer
President Secretary
file: Annual T Rpt 43009.xls
REQUIRED REPORTING TO MUNICIPALITY BY PENSION BOARD
As of 4/30/2009 fiscal year end
(40 ILCS 5/3143) (from Ch. 108 1/2, par. 3143)
Sec. 3143. Report by pension board.
The pension board shall report annually to the city council or
board of trustees of the municipality on the condition of the
pension fund at the end of its most recently completed fiscal
year. The report shall be made prior to the council or board
meeting held for the levying of taxes for the year for which the
report is made.
1. Total Assets (cost): $2,759,119
Total Assets (market value): $2,759,119
2. Estimated receipts during the next succeeding fiscal year from:
Participant Contributions deducted from payroll $203,070
All other sources $297,328
3. Estimated amount required during the next succeeding fiscal year to:
(a) pay all pensions and other obligations provided in this Article $250,716
(b) meet the annual requirements of the fund as provided in
Sections 3-125 and 3-127; Funding Requirement $481,207
4. Total Net Income received from investment of net assets: ($225,010)
Assumed Investment Return: 7.50%
Actual Investment Return: -8.01%
Total Net Income received from investment of net assets (fye 4130/2007): $181,427
Assumed Investment Return(fye 4/30/2007): 7.50%
Actual Investment Return(fye 4/30/2007): 7.88%
5. Total number of Active Employees that are financially contributing to the fund: 30
6. Disbursements to:
(i) Annuitants in receipt of a regular retirement pension
Total number of annuitants: 2
Total amount that was disbursed in benefits: 113,881
(ii) Recipients being paid a disability pension
Total number of annuitants 0
Total amount that was disbursed in benefits 0
(iii) Survivors and children in receipt of benefits
Total number of annuitants: 0
Total amount that was disbursed in benefits: 0
7. Funded ratio of the fund 33.4%
S. Unfunded Liability $5,512,957
9. Investment Policy of the pension board under the statutory investment
restrictions imposed on the fund. See attachment.
Certification
1, Todd Overmyer, President of the Police Pension Board, United City of
Yorkville, Kendall County, Illinois, do hereby certify that this document is a true
and correct copy of: "Required Reporting to Municipality By Pension Board" as
outlined in 40 ILCS 5/3143.
Witness my hand this 1 0th day of May 2010.
Todd Overmyer
President of United City of Yorkville Police Pension Board
United City of Yorkville Police Pension Fund
Budget: Fiscal 2008-09 Acutals 1 Fiscal 09-10 Budget
Fiscal 06-07 Fiscal 07-08 1 Fiscal 08-09 Fiscal 09-10 Fiscal 10-11
Budget Item as of 04/30/08 as of 4130109 as of 4130110
Revenue Budget Actual Budget Actual Budget Actual Budget Actual Bud et
Beginning Balance NIA 1574459.32 NIA 2,138,331.19 NIA 2,612,538.50 NIA 2,740,233.35 NIA
Ending Balance NIA 2,138,331.19 NIA 2,612,538.50 NIA 2,740,233.35 NIA 3,645,473.42 NIA
Tax Levy 250000.00 248987.74 275000.00 275144.21 300000.00 297327.74 325000.00 311203.26 325000.00
Member Contributions 150000.00 154442.45 200000.00 182597.35 190000.00 196258.23 210000.00 201873.51 200000.00
IMRF 2006 Member Transfers 0.00 46172.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Expenditures
Supplies 100.00 0.00 100.00 13.75 100.00 19.40 100.00 0.00 100.00
Attorney Fees 2000.00 1200.00 3600.00 3000.00 2400.00 2400.00 2600.00 2600.00 2600.00
Accounting Fees/Minutes 2500.00 860.00 1200.00 1692.50 1800.00 1475.00 1600.00 1412.50 1000.00
Audit Fees 1000.00 0.00 2000.00 3000.00 2200.00 0.00 2150.00 4030.00 3500.00
IDOI Filling Fees 2500.00 0.00 1200.00 1000.00 2000.00 1475.00 1350.00 1300.00 1600.00
Actuarial Fees 1500.00 0.00 1500.00 1300.00 1500.00 1300.00 1500.00 1500.00 1500.00
Investment Fees MVT 5000.00 8266.00 10000.00 11352.00 15000.00 12375.00 15000.00 17104.00 19000.00
Pension Seminars 0.00 0.00 0.00 0.00 1000.00 0.00 1000.00 100.00 2000.00
Contribution Refunds 0.00 0.00 0.00 22662.66 3888.57 6176.56 0.00 0.00 33674.27
Retirement Benefits 0.00 0.00 120000.00 110000.00 112128.00 112861.12 113880.60 112579.92 275000.00
Disability Benefits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Spousal Benefits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Dependant Benefits 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
IDOI Annual Compliance Fee 150.00 225.95 250.00 316.60 400.00 431.37 500.00 526.31 600.00
Total Expenditures 14750.00 10551.95 139850.00 154337.51 142216.57 138513.451 139680.601 14 Il 152.731 340574.27
prepared by: William Powell 05/10/10
Approved by the Board on
policelbudgetf08-09.xls
Law Offices of Cary J. Collins, P.C.
2200 West Higgins Road Suite 155 Invoice
Hoffman Estates, IL 60169 Date Invoice#
Telephone 847-519-0010 Fax 847-519-0016 E3/15/2010 5245
Bill To
Yorkville Police Pension Board
Atten:Chief Harold Martin
804 Game Farm Road
Yorkville IL 60560
Terms
Due on receipt
Quarterly retainer for the months of: Description Amount
APRIL,MAY AND JUNE,2010 650.00
Total 5650.00
Please make checks payable to the LAW OFFICES OF CARY J.COLLINS
PaymentslCredits
$0.00
Balance Due $650.00
Timothy W. Sharpe
Actuary
1816 Allen Drive
Geneva,Illinois 60134
(630)262-0600
Fax(630)262-0699
April 8, 2010
Mr. William Powell
City of Yorkville
804 Game Farm Road
Yorkville, IL 60560
Re: Invoice for Services Rendered During January through April
Completion of May 1, 2009 Actuarial Valuation for
the City of Yorkville Police Pension Fund;
Completion of Benefit Statements for Police Officers
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Quarterly member contributions letters
State of Illinois intemet filing for fiscal year end
file: Police Pension Time LogAs
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Zabixnski Consu ttu[ug Services, ][ne. ;
February 9, 2010
Mr. Bill Powell
Yorkville Police Pension Fund
800 Game Farm Road
Yorkville, Illinois
Dear Mr. Powell:
The following is the list of non-audit services provided to you from Zabinski Consulting Services,
Inc. We hope to better meet your expectations of service from our firm by clearly identifying the
particular services to be provided and their frequency. Our services will cover the year ended
April 30, 2010.
You are responsible for the management decisions and functions, and for designating a
competent employee to oversee any bookkeeping services or other services we provide. You
are responsible for evaluating the adequacy and results of and accept responsibility for such
services. You are responsible for establishing and maintaining internal controls, including
monitoring ongoing activities. According to our professional standards, management decisions
and reviews are kept by you. And this is the way it should be. These are your financial systems
and reports. We assist in limited ways to help you with them.
None of the services can be relied on to detect errors, fraud, or illegal acts that may exist.
However, we will inform the appropriate level of management of any material errors that come
to our attention and any fraud or illegal acts that come to our attention, unless they are clearly
inconsequential. In addition, we have no responsibility to identify and communicate significant
deficiencies or material weakness in your internal control as part of this engagement.
Based on discussions with you, the Pension Fund is looking for assistance in completing the
summarization of all transactions from your investment advisor within a predetermined trial
balance and completion of the annual filing for the Department of Professional and Financial
Regulation for the year ended April 30, 2010. It is our expectation that the Pension Fund will
provide us all necessary investmentibank account statements showing the detailed transactions
from your investment advisor, and a completed interrogatory for the entire fiscal year.
On an annualized basis, staff from Zabinski Consulting Services, Inc. will prepare all journal
entries, and work-papers in accordance with generally accepted accounting principles
necessary to complete an audit in accordance with generally accepted auditing standards.
These documents will not satisfy the requirements of an audit and no opinion will be issued on
such.
Accounting Auditing Financial Consulting
P.U. Box 6534 • Aurcira, (L 6()598-6534 • (63U)939-7668 Office + (630) 979-8275 Fax
Mr. Bill Powell
City of Yorkville Police Pension Fund Page 2
The fee for these non-audit services is based on the following schedule. We have included fee
estimates for year ending April 30, 2010 and for three years thereafter.
April 30, 2010 April 30, 20_11 April 30, 2092 Apol30, 2013
Quarterly $ 400 $ 425 $ 450 $ 475
bookkeeping
services (per
quarter)
Annual Division 1,200 1,250 1,300 1,350
of Financial
Regulation Filing
If the Pension Fund wants to continue utilizing Mr. Powell for summarizing transactions, we
would bill out the additional accounting work at$75 per hour and there would be an additional
$250 surcharge on the Annual Division of insurance report filing. We estimate that there would
be five to eight hours of work for account reconciliations.
We appreciate the opportunity to be of service to you and believe this letter accurately
summarizes the significant terms of our engagement. If you have any questions, please let us
know. If you agree with the terms of our engagement as described in this letter, please sign the
enclosed copy and return it to us.
Sincerely, lI.
�i`r Ll 171 IP
Calene "Kelly�—Zabinski, CPA
CITY OF YORKVILLE POLICE PENSION FUND
Accepted by:
Date: