Audit Advisory Committee

Thursday, December 4, 2025 9:00 AM City of Marco Island Florida 51 Bald Eagle Drive Marco Island, Florida cityofmarcoisland.com Community Room Audit Advisory Committee Chair: Eugene Siegel Vice-Chair: Elena McFann Committee Members: Thomas Fontana, Daniel Kastholm, Chris Ricci, Chris Scherzinger, Teri Sommerfeld City Staff: Carol McDermott, Jill Cartaya Meeting Minutes - Final

December 4, 2025Audit Advisory Committee Meeting Minutes - Final (1) CALL TO ORDER Chair Siegel called the meeting to order at 9:00 am. (2) ROLL CALL Member Fontana, Member Kastholm, Vice-Chair McFann, Member Ricci, Member Sommerfeld and Chair Siegel Present: 6 - (Note: Member Kastholm stepped out and was present at 9:01 am) ALSO PRESENT Councilor Gray Councilor Schwan Carol McDermott, Finance Director (3) PLEDGE OF ALLEGIANCE Led by Chair Siegel (4) APPROVAL OF THE AGENDA Chair Siegel requested a motion to approve the Agenda Motion by Member Ricci, seconded by Member Sommerfield to Approve the Agenda. MOTION CARRIED BY THE FOLLOWING VOICE VOTE: Yes: Member Fontana, Member Kastholm, Vice-Chair McFann, Member Ricci, Member Sommerfeld and Chair Siegel 6 - (5) APPROVAL OF THE MINUTES Chair Siegel requested a motion to approve the October 29, 2025, meeting Minutes MOTION by Member Fontana, seconded by Member Sommerfeld to Approve October 29, 2025, Minutes. MOTION CARRIED BY THE FOLLOWING VOICE VOTES: Yes: Member Fontana, Member Kastholm, Vice-Chair McFann, Member Ricci, Member Sommerfeld and Chair Siegel 6 - ID 25-4960 Approval of the Audit Advisory Minutes of October 29, 2025 (6) OLD BUSINESS ID 25-4922 AAC Objectives and Responsibilities Updated Vice-Chair McFann gave a brief update from the City Council Meeting. The City Council Members had positive feedback. The plan is to have the ACC Objectives and Responsibilities document rolled into a Resolution for approval at an upcoming City Council Meeting with a tentative date of January 5, 2026. Chair Siegel requested a motion to approve the AAC Objectives and Responsibilities document becoming Page 1City of Marco Island Florida

December 4, 2025Audit Advisory Committee Meeting Minutes - Final a Resolution and be presented at the January 5th, 2026, City Council Meeting. MOTION by Member Ricci, seconded by Member Kastholm to Approve the AAC Objectives and Responsibilities document becoming a Resolution and be presented at the January 5th, 2026, City Council Meeting. MOTION CARRIED BY THE FOLLOWING VOICE VOTES: Yes: Member Fontana, Member Kastholm, Vice-Chair McFann, Member Ricci, Member Sommerfeld and Chair Siegel 6 - ID 25-4923 Revised Proposed AAC Committee Meeting Calendar Chair Siegel went over the Proposed Meeting Calendar. In the AAC Objectives and Responsibilities document, page 4, there is an outline showing what will be covered during the next meeting. Member Sommerfeld questioned whether these dates were established somewhat in relationship with the Auditors. Chair Siegel confirmed yes, the dates are. Members shared their input and were in search of clarification through discussion regarding how to get answers to their questions regarding the Flash Report. (7) NEW BUSINESS ID 25-4924 Audit Update Chair Siegel asked Carol McDermott, Finance Director for an Audit Update. Carol McDermott, Finance Director, gave an update. The fieldwork will start in January 2026. Ms. McDermott has spoken with Chris Kessler from CLA several times. The progress of the audit depends on the City’s Finance Department meeting the deadlines and pulling the documentation together. There will be an official Kick-off meeting on December 9th. The Finance Department Controller’s position is still open. Meanwhile, the previous Senior Accountant, who is now the Water & Sewer Customer Service Manager, will be joining the Finance Department as of December 1st, on an interim basis to help with the year-end close and the audit. Ms. McDermott did speak with Mr. Kessler to ask if a representative could come to the meeting, but unfortunately, did not have anyone available. The tentative dates were sent to Mr. Kessler. ID 25-4925 Corrective Action Plan Progress/Update Chair Siegel asked if there is any update on Grant Accounting. Ms. McDermott stated there were four material weaknesses and three were related to grant processing, tracking and reporting. The Grant processing, tracking and reporting was done by an outside consultant, and this now will be brought back in-house. Chief Bryne has been enlisted to help with Emergency Disaster grants. Chief Byrne is an expert with FEMA and FDEM reporting and works very well with them. Chief Bryne has a member of his team that will take over the role the consultant had and make sure that we are in compliance with the reporting. As far as the Grant Accounting, the Finance Department will follow the accounting standards with the matching principles. Ms. McDermott, mentioned that, Casey Lucius, Interim City Manager, will be having a meeting the all the Directors, Project Managers who have grants, Chief Bryne, herself, and Kelly who is taking over the role of the consultant, to discuss the roles and responsibilities so the Project Managers understand that they are Page 2City of Marco Island Florida

December 4, 2025Audit Advisory Committee Meeting Minutes - Final responsible for reporting and report to Kelly what they have done and met their deadlines. ID 25-4926 Review of Preliminary Year-End Financials Chair Siegel asked for a brief overview of the Preliminary Year-end Financial report. Carol McDermott, Finance Director, clarified that this report is a Preliminary view. Ms. McDermott explained how the report is set-up. The report is a work in process. (8) STAFF COMMUNICATIONS None. (9) CITY COUNCIL COMMUNICATION Councilor Gray shared his input and thanked the committee for their great work. Councilor Schwan shared City Council was very appreciative with the report that came forward with the recommendations. It was also well received by the community. (10) PUBLIC COMMENT The following community member came forward to offer their thoughts to the Members of the Committee: Elliott Mascoop (11) NEXT MEETING: CONFIRMATION & ATTENDANCE Next meeting will be scheduled for February 18, 2026 @ 1:00 pm. (12) PROPOSED AGENDA TOPICS FOR NEXT MEETING External Audit Update Corrective Action Plan Update 1st Quarter Financial Review (13) OTHER COMMITTEE COMMUNICATIONS None. (14) ADJOURNMENT There being no further business before the Committee, Chair Siegel adjourned by meeting at 10:14 am. Page 3City of Marco Island Florida