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AC 01-23-2023 AgendaCITY OF CUPERTINO AUDIT COMMITTEE AGENDA This is a teleconference meeting without a physical location. Monday, January 23, 2023 4:00 PM Regular Meeting TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION TO HELP STOP THE SPREAD OF COVID-19 In accordance with Government Code 54953(e), this will be a teleconference meeting without a physical location to help stop the spread of COVID-19. Members of the public wishing comment on an item on the agenda may do so in the following ways : 1) E-mail comments by 9:00 a.m. on Monday, January 23 to the Audit Committee at AuditCommittee@cupertino.org. These e-mail comments will be received by the Audit Committee members before the meeting and posted to the City’s website after the meeting. 2) E-mail comments during the times for public comment during the meeting to the Audit Committee at AuditCommittee@cupertino.org. The staff liaison will read the emails into the record, and display any attachments on the screen, for up to 3 minutes (subject to the Chair’s discretion to shorten time for public comments). Members of the public that wish to share a document must email AuditCommittee@cupertino.org prior to speaking. 3) Teleconferencing Instructions Members of the public may observe the teleconference meeting or provide oral public comments as follows: Oral public comments will be accepted during the teleconference meeting. Comments may be made during “oral communications” for matters not on the agenda, and during the public comment period for each agenda item . To address the Audit Committee, click on the link below to register in advance and access the meeting: Register in advance for this webinar: https://cityofcupertino.zoom.us/webinar/register/WN_maVWZYFESmafo00czn55wg Page 1 Audit Committee Agenda January 23, 2023 Phone Dial: 669-900-6833 and enter Webinar ID: 995 0591 3107 (Type *9 to raise hand to speak, *6 to unmute yourself). Unregistered participants will be called on by the last four digits of their phone number. Or an H.323/SIP room system: H.323: 162.255.37.11 (US West) Meeting ID: 995 0591 3107 SIP: 99505913107@zoomcrc.com After registering, you will receive a confirmation email containing information about joining the webinar. Please read the following instructions carefully: 1. You can directly download the teleconference software or connect to the meeting in your internet browser. If you are using your browser, make sure you are using a current and up-to-date browser: Chrome 30+, Firefox 27+, Microsoft Edge 12+, Safari 7+. Certain functionality may be disabled in older browsers, including Internet Explorer . 2. You will be asked to enter an email address and a name, followed by an email with instructions on how to connect to the meeting. Your email address will not be disclosed to the public. If you wish to make an oral public comment but do not wish to provide your name, you may enter “Cupertino Resident” or similar designation. 3. When the Chair calls for the item on which you wish to speak, click on “raise hand.” Speakers will be notified shortly before they are called to speak. 4. When called, please limit your remarks to the time allotted and the specific agenda topic . In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this teleconference meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 6 hours in advance of the meeting to arrange for assistance. In addition, upon request, in advance, by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. ROLL CALL ORDERS OF THE DAY Page 2 Audit Committee Agenda January 23, 2023 APPROVAL OF MINUTES 1.Subject: Approve Minutes of Regular Meeting on November 28, 2022 Recommended Action: Approve Minutes of Regular Meeting on November 28, 2022 A - Draft Minutes POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons wishing to address the Committee on any matter within the jurisdiction of the Committee and not on the agenda. Speakers are limited to three (3) minutes. In most cases, State law will prohibit the Commission from making any decisions with respect to a matter not on the agenda. OLD BUSINESS NEW BUSINESS 2.Subject: ACTION ITEM Appointment of Audit Committee Chair and Vice Chair Recommended Action: 1.Appoint Vice Mayor Sheila Mohan as Chair 2.Appoint Council Member J.R. Fruen as Vice Chair Presenter: Kristina Alfaro, Director of Administrative Services 4:15(5) Staff Report 3.Subject: ACTION ITEM Appointment of External Auditor Selection Subcommittee Recommended Action: Appoint the Chair and Vice Chair to the external auditor selection subcommittee Presenter: Kristina Alfaro, Director of Administrative Services 4:20(5) Staff Report 4.Subject: INFORMATION ITEM Consider the report on Interim Audit and AUP Engagements Recommended Action: Receive report on Interim Audit and AUP Engagements Presenter: Crowe 4:25(10) A - Interim Audit and AUP Engagements Update 5.Subject: INFORMATION ITEM Consider receiving OPEB & Pension Section 115 Trust Performance Report for Quarter Ending December 31, 2022 Page 3 Audit Committee Agenda January 23, 2023 Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending December 31, 2022 Presenter: PARS and US Bank 4:35(10) A - OPEB & Pension Section 115 Trust Performance Report for Quarter Ending December 31, 2022 6.Subject: ACTION ITEM Consider the Monthly Treasurer's Investment Report for November 2022 Recommended Action: Review the Monthly Treasurer's Investment Report for November 2022 Presenter: Janet Liang, Acting Management Analyst, and Chandler Asset Management 4:45(15) Staff Report A - Chandler Investment Report November 2022 B - Chandler Custodial Report November 2022 C - PARS Pension and OPEB Account Statement November 2022 D - LAIF Account Statement November 2022 7.Subject: ACTION ITEM Consider the Monthly Treasurer's Report for November 2022 Recommended Action: Review the Monthly Treasurer's Report for November 2022 Presenter: Janet Liang, Acting Management Analyst 5:00(15) Staff Report A - Report of City-wide Receipts, Disbursements, and Cash Balances November 2022 B - Report of City-wide Fund Balances November 2022 C – Weekly Payment Register for the Period Ending November 4, 2022 D – Weekly Payment Register for the Period Ending November 11, 2022 E – Weekly Payment Register for the Period Ending November 18, 2022 F – Weekly Payment Register for the Period Ending November 25, 2022 G – Weekly Payment Register for the Period Ending December 2, 2022 8.Subject: ACTION ITEM Consider the Monthly Treasurer's Investment Report for December 2022 Recommended Action: Review the Monthly Treasurer's Investment Report for December 2022 and recommend filing with City Council Presenter: Janet Liang, Acting Management Analyst, and Chandler Asset Management 5:15(15) Staff Report A - Chandler Investment Report December 2022 B - Chandler Custodial Report December 2022 C - PARS Pension and OPEB Account Statement December 2022 D - LAIF Account Statement December 2022 9.Subject: ACTION ITEM Consider the Monthly Treasurer's Report for December 2022 Page 4 Audit Committee Agenda January 23, 2023 Recommended Action: Review the Monthly Treasurer's Report for December 2022 and recommend filing with City Council Presenter: Janet Liang, Acting Management Analyst 5:30(15) Staff Report A - Report of City-wide Receipts, Disbursements, and Cash Balances December 2022 B - Report of City-wide Fund Balances December 2022 C – Weekly Payment Register for the Period Ending December 2, 2022 D – Weekly Payment Register for the Period Ending December 9, 2022 E – Weekly Payment Register for the Period Ending December 16, 2022 F – Weekly Payment Register for the Period Ending December 23, 2022 10.Subject: ACTION ITEM Clarifying language on Treasurer’s Report, Audit Committee 2023 Schedule and Work Plan Meeting Frequency and subcommittees . Recommended Action: 1.Recommend to City Council an Audit Committee municipal code update to clarify the review of the City Treasurers Quarterly Investment Report Government Code Section 53607; 2.Change audit committee meeting frequency from monthly six meetings annually; 3.Dissolve the budget format review subcommittee; and 4.Dissolve the external audit selection subcommittee after selection of external auditors Presenter: Kristina Alfaro, Director of Administrative Services 5:45(10) Staff Report A – Current Audit Committee Work Plan and duties and responsibilities 2023 B – Redline Audit Committee Work Plan and duties and responsibilities 2023 C – Updated Audit Committee Work Plan and duties and responsibilities 2023 STAFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING ADJOURNMENT In compliance with the Americans with Disabilities Act (ADA), anyone who is planning to attend this meeting who is visually or hearing impaired or has any disability that needs special assistance should call the City Clerk's Office at 408-777-3223, at least 48 hours in advance of the meeting to arrange for assistance. In addition, upon request, in advance, by a person with a disability, meeting agendas and writings distributed for the meeting that are public records will be made available in the appropriate alternative format. Any writings or documents provided to a majority of the members after publication of the agenda will Page 5 Audit Committee Agenda January 23, 2023 be made available for public inspection. Please contact the City Clerk’s Office in City Hall located at 10300 Torre Avenue, Cupertino, California 95014, during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino Municipal Code section 2.08.100 written communications sent to the Cupertino City Council, Commissioners or City staff concerning a matter on the agenda are included as supplemental material to the agendized item. These written communications are accessible to the public through the City’s website and kept in packet archives. Do not include any personal or private information in written communications to the City that you do not wish to make public, as written communications are considered public records and will be made publicly available on the City website. Members of the public are entitled to address the members concerning any item that is described in the notice or agenda for this meeting, before or during consideration of that item. If you wish to address the members on any other item not on the agenda, you may do so during the public comment . Page 6