Audit 12-09-08City of Cupertino
Audit Committee Minutes
Regular Meeting
December S~, 2008
1. CALL TO ORDER
At 4:10 p.m., David Woo called the meeting to order at Cupertino City Hall, Conference
Room A, 10300 Torre Avenue, Cupertino.
2. ROLL CALL
Community Members: Myoung Kang, Garrett Wade, Stanley Stemkoski
City Council: Orrin Mahoney, Gilbert Wong (5:00 p.m.)
City Staff: Dorothy Steenfott, David Woo
3. APPROVAL OF MINUTES
Wade moved to approve the minutes of the regular meeting of July 10, 2008. Stemkoski
seconded and motion passed unanimously ~~ith Wong absent.
4. ORAL COMMUNICATIONS
None
5. WRITTEN COMMUNICATIONS
None.
6. NEW BUSINESS
A. Review Proposed Changes to Investment Policy
Woo updated the Committee on the ~~roposed changes to the policy. Wade moved
to approve the proposed changes to the investment policy. Stemkoski seconded
and motion passed unanimously with Wong absent.
B. Review Internal Control Measures oti Billing/Receipting
Woo reported on updated procedures for billing and receipting. Wade moved to
accept the updated procedures. Stemkoski seconded and motion passed
unanimously with Wong absent.
C. Budget Adjustments/Investment Report
Woo updated the Committee on changes to the portfolio in light of the financial
crisis. He indicated that the portfolio was repositioned to eliminate exposure. He
also reported that a budget adjustment of $1,000,000 was taken to council in
November and that another adjustment would be done at the beginning of 2009.
December 9, 2008 Audit Committee Minutes Page 2
D. Meeting Dates for 2009/Consider C<~nceling January 8 Meeting
The Committee noted the 2009 meeting dates and concurred to cancel the January
8 meeting.
E. Presentation of Audit Report - Mazf; and Associates
Woo highlighted various aspects of the audit report. It was noted that findings of
a minor nature were provided to the City and procedures were being implemented
to address them. It was also noted that the City received an unqualified opinion
from the auditors which is the highe;~t rating that can be achieved.
At 5:25 p.m., David Woo left the meeting in compliance with the Statement of
Auditing Standards recommendatior- that advisory bodies be allowed to meet with
the audit firm to review the findings without staff liaisons present.
Vikki Rodriguez, Maze and Associates, responded to questions from the
committee regarding the City's audit and general auditing procedures including
new accounting system control measures, IT findings and disaster recovery. Kang
moved to accept the 2008 audit report. Wong seconded and motion passed
unanimously.
7. ADJOURNMENT
The meeting was adjourned at 5:28 p.m.
Dorothy Stee o
Recording Sec etary