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HomeMy WebLinkAboutAC 10-27-2025 MinutesMINUTES AUDIT COMMITTEE Monday, October 27, 2025 At 4:00 p.m. Chair Eno Schmidt called the regular Audit Committee meeting to order in the City of Cupertino Conference Room A, 10300 Torre Avenue. ROLL CALL Present: Chair Eno Schmidt, Vice Mayor Kitty Moore, Council Member Sheila Mohan, Vice Chair Hanyan Wu and Committee Member William Wong. Absent: None. APPROVAL OF MINUTES 1.Subject: Approve Minutes of Regular Meeting on July 28, 2025 Recommended Action: 1. Approve Minutes of Regular Meeting on July 28, 2025 MOTION: Moore moved and Mohan seconded to approve the minutes of the regular meeting on July 28, 2025. The motion carried with the following vote: Ayes: Schmidt, Mohan, Moore, Wong, Wu. Noes: None. Abstain: None. Absent: None. 2.Subject: Approve Minutes of Special Meeting on August 4, 2025 Recommended Action: Approve Minutes of Special Meeting on August 4, 2025 MOTION: Moore moved and Mohan seconded to approve the minutes of the Special Meeting on August 4, 2025. The motion carried with the following vote: Ayes: Schmidt, Mohan, Moore, Wong, Wu. Noes: None. Abstain: None. Absent: None. POSTPONEMENTS – None. ORAL COMMUNICATIONS – San Rao emphasized the importance of reviewing budgets by department and conducting outreach. He noted that community members varied in their financial understanding - some needed simplified information, while others were capable of deeper analysis. Rao urged focusing on “personas” who were either decision-makers or knowledgeable contributors, so the budgeting process could benefit from informed input and ultimately achieve its goals. OLD BUSINESS – None. Audit Committee Minutes October 27, 2025 NEW BUSINESS 3. Subject: INFORMATIONAL ITEM Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending September 30, 2025 Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending September 30, 2025 Presenter: PARS and US Bank 4:15(10) PARS and US Bank gave a presentation. Committee members asked questions, which staff and the presenter responded to. Chair Schmidt opened the public comment period, and seeing no one, closed the public comment period. 4. Subject: INFORMATIONAL ITEM Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2025 Recommended Action: Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2025 Presenter: Jonathan Orozco, Finance Manager, and Chandler 4:25(15) Finance Manager Jonathan Orozco gave a presentation. A representative from Chandler Asset Management gave a presentation. Committee members asked questions which staff and the presenter responded to. Chair Schmidt opened the public comment period, and seeing no one, closed the public comment period. MOTION: Moore moved and Wu seconded to accept a modification in the Treasurer’s Investment Report to identify and include the transactions that had not yet posted in future reports. The motion carried with the following vote: Ayes: Schmidt, Mohan, Moore, Wong, Wu. Noes: None. Abstain: None. Absent: None. 5. Subject: INFORMATIONAL ITEM Receive the Internal Audit and Fraud, Waste, and Abuse programs update Recommended Action: Receive the Internal Audit and Fraud, Waste, and Abuse Audit Committee Minutes October 27, 2025 programs update Presenter: Baker Tilly 4:40(10) A representative from Baker Tilly gave a presentation. Committee members asked questions, which the presenter responded to. Chair Schmidt opened the public comment period, and seeing no one, closed the public comment period. 6. Subject: ACTION ITEM Review and accept the OPEB and Pension Trust Investment Policies Recommended Action: Review and accept the OPEB and Pension Trust Investment Policies Presenter: Jonathan Orozco, Finance Manager 4:50(10) Finance Manager Jonathan Orozco gave a presentation. Committee members asked questions which staff responded to. Chair Schmidt opened the public comment period and the following people spoke: •San Rao Chair Schmidt closed the public comment period. MOTION: Moore moved and Mohan seconded to bring this item back to a future Audit Committee meeting and withhold acceptance of the report until additional information is provided by City staff, along with any relevant input from PFM, PARS, and the City Attorney’s Office. The motion carried with the following vote: Ayes: Schmidt, Mohan, Moore, Wong, Wu. Noes: None. Abstain: None. Absent: None. 7. Subject: INFORMATIONAL ITEM Receive the Fiscal Year 2024-25 Annual Comprehensive Financial Report (ACFR) Update Recommended Action: Receive the Fiscal Year 2024-25 Annual Comprehensive Financial Report (ACFR) Update Presenter: The Pun Group 5:05(10) Audit Committee Minutes October 27, 2025 A representative from The Pun Group gave a presentation. Committee members asked questions and made comments, which the presenter and staff responded to. Chair Schmidt opened the public comment period, and seeing no one, closed the public comment period. 8. Subject: ACTION ITEM OpenGov Budget Format Review Presentation and Finalize Recommendations Recommended Action: a. Receive Budget Format Review presentation as outlined in the Budget Format Implementation Action Plan (IAP) recommendation numbers 15, 17, 18, 19, and 30 b. Finalize OpenGov budget format for recommendation to City Council Presenter: Toni Oasay-Anderson, Interim Budget Manager 5:15(30) Toni Oasay-Anderson, Interim Budget Manager and Budget Intern II Alexis Chiu gave a presentation. Committee members asked questions, which staff responded to. Chair Schmidt opened the public comment period and the following people spoke: •San Rao Chair Schmidt closed the public comment period. Moore moved and Wu seconded to move the staff recommendation, while including in the staff report information about the genesis of the OpenGov budget format. The motion carried with the following vote: Ayes: Schmidt, Mohan, Moore, Wong, Wu. Noes: None. Abstain: None. Absent: None. 9. Subject: INFORMATIONAL ITEM Receive the proposed Audit Committee 2025 Schedule and Workplan Recommended Action: Receive the proposed Audit Committee 2025 Schedule and Workplan Presenter: Jonathan Orozco, Finance Manager 5:45(10) Audit Committee Minutes October 27, 2025 Finance Manager Jonathan Orozco gave a presentation. Committee members asked questions which staff responded to. STAFF AND COMMITTEE REPORTS – None. COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS Chair Schmidt announced the Community Service Awards. Vice Chair Wu discussed the Mayor’s Meeting where they voted on the CREST Awards. Vice Mayor Moore noted excitement about the work that the interns have done, thanking them for the cashflow policy and getting the budget moving along. FUTURE AGENDA SETTING – None ADJOURNMENT At 5:48 p.m. Chair Schmidt adjourned the regular Audit Committee Meeting. Minutes prepared by: Lindsay Nelson, Administrative Assistant