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HomeMy WebLinkAboutAudit Committee - 2023STATE OF CALIFG `?IA ) COUNTY 017 S:V:\; !A CITY OF CUPERTINO � y - AN INIP CifiF UE i P Ck AGEN C U P E RT I N O AUDIT COMMITTE t g, t l r y_�° ' This is a teleconference meeting wPt Qu �aY-,��h� llc�l location. Monday, January 23, 2023 4:00 PM i ;?, 2� Di I.E --- 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:Hcityofcupertino.zoom.us/webinar/register/WN_maVWZYFESmafo00czn55wg Page 1 Audit Committee Agenda January 23, 2023 Phone Dial: 669-900-6833 and enter Webinar ID: 995 05913107 (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 S'FA TE 0F CALi? --- - ---- — -- S S . CITY OF CUPERT; INO . _ AN AGENDA RY 1 I IAr f CUPERTINO AUDIT COMI,T E Q . I , ,1;SO IALlY P �_1 ' 1'LD I-3 I\;t 1 ; �:Ni-)A ON '!�T IE This is a teleconference meeting �'t�°1� ys�l Yjc4tion-" I, c I r Y HALL. Monday, Februar41) 27 202� 4:00 PCC1� E S(GNAFURE 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, February 27 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_y5fNTM19SceWCCkW-5oRA Page 1 Audit Committee Agenda February 27, 2023 Phone Dial: 669-900-6833 and enter Webinar ID: 935 9929 2836 (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: 935 9929 2836 SIP: 93599292836@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 February 27, 2023 APPROVAL OF MINUTES 1. Subject: Approve Minutes of Regular Meeting on January 23, 2022 Recommended Action: Approve Minutes of Regular Meeting on January 23, 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: INFORMATIONAL ITEM Consider an Internal Audit Overview Recommended Action: Receive an Internal Audit Overview Presenter: Moss Adams 4:15(15) 3. Subject: INFORMATIONAL ITEM Consider the Quarterly Internal Audit Status Report Recommended Action: Receive the Quarterly Internal Audit Status Report Presenter: Moss Adams 4:30(10) A - Cupertino Quarterly Internal Audit Status Report 4. Subject: ACTION ITEM Consider the Budget Process Review Final Report Recommended Action: Receive the Budget Process Review Final Report and forward to City Council. Presenter: Moss Adams 4:40(20) A - Cupertino Budget Process Review Final Report 5. Subject: ACTION ITEM Consider the Monthly Treasurer's Investment Report for January 2023 Recommended Action: Review the Monthly Treasurer's Investment Report for January 2023 and recommend filing with City Council Presenter: Thomas Leung, Budget Manager, and Chandler Asset Management 5:00(20) Page 3 Audit Committee Agenda February 27, 2023 Staff Report A - Chandler Investment Report 1anua1y 2023 B - Chandler Custodial Statement lanuary 2023 C - PARS Pension and OPEB Account Statement Ianuary 2023 D - LAIF Account Statement Tanuary 2023 6. Subject: ACTION ITEM Consider the Monthly Treasurer's Report for January 2023 Recommended Action: Review the Monthly Treasurer's Report for January 2023 and recommend filing with City Council Presenter: Thomas Leung, Budget Manager 5:20(10) Staff Report A - Report of City-wide Receipts Disbursements and Cash Balances Tanuary 2023 B - Report of City-wide Fund Balances/Net Position TanuarY2023 C - Weekly Payment Register for the Period Ending Tanuary 6, 2023 D - Weekly Payment Register for the Period EndingTanuary anuary 13, 2023 E - Weekly Payment Register for the Period Ending Tanuary 20, 2023 F - Weekly Payment Register for the Period Ending Tanuary 27, 2023 G - Weekly Payment Register for the Period Ending February 3, 2023 7. Subject: INFORMATIONAL ITEM Consider the Audit Committee 2023 Schedule and Work Plan Recommended Action: Receive Audit Committee 2023 Schedule and Work Plan and provide direction to staff Presenter: Thomas Leung, Budget Manager 5:30(10) A - Proposed Audit Committee 2022 Schedule and Work Plan 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 be made available for public inspection. Please contact the City Clerk's Office in City Hall located at Page 4 Audit Committee Agenda February 27, 2023 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 5 CITY OF CUPERTINOI AGENDA - - = CUPERTINO AUDIT COMMITTEE 10300 Torre Avenue, City Hall Conference Room A f Teleconference ON t 1 E Monday, March 27; 202' 4:00 PM Dig tSIGNr--\:PURE Regular Meeting IN PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION Members of the public wishing comment on an item on the agenda may do so in the following ways: 1) Appear in person at Cupertino City Hall. Members of the audience who address the Committee must come to the lectern/microphone, and are requested to complete a Speaker Card and identify themselves. Completion of Speaker Cards and identifying yourself is voluntary and not required to attend the meeting or provide comments. 2) E-mail comments by 9:00 a.m. on Monday, March 27 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. 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 Committee, click on the link below to register in advance and access the meeting: Online Register in advance for this webinar: https://cityofcupertino.zoom.us/webinar/register/WN_sQgNDPmySKSGu_ymzFaQGQ Phone Page 1 Audit Committee Agenda March 27, 2023 Dial: 669-900-6833 and enter Webinar ID: 973 1794 7299 (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: 973 1794 7299 SIP: 97317947299@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. 5. Members of the public that wish to share a document must email AuditCommittee@cupertino.org prior to speaking. ROLL CALL ORDERS OF THE DAY APPROVAL OF MINUTES 1. Subject: Approve Minutes of Regular Meeting on February 27, 2023 Recommended Action: Approve Minutes of Regular Meeting on February 27, 2023 A - Draft Minutes Page 2 Audit Committee Agenda March 27, 2023 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 Consider the FY 2021-22 Annual Comprehensive Financial Report (ACFR) and Supplemental Reports Recommended Action: Receive the FY 2021-22 ACFR and Supplemental Reports and forward to City Council Presenter: Crowe 4:15(30) A - Cupertino ACFR Draft 2022 B - Cupertino ML Draft 2022 C - Cupertino SAS 114 Draft 2022 D - Cupertino Single Audit Draft 2022 E - Cupertino GANN AUP Draft 2022 F - Cupertino Investment AUP Draft 2022 G - Cupertino Storm Drain AUP Draft 2022 3. Subject: ACTION ITEM Consider the Monthly Treasurer's Investment Report for February 2023 Recommended Action: Receive the Monthly Treasurer's Investment Report for February 2023 and recommend filing with City Council Presenter: Thomas Leung, Budget Manager, and Chandler Asset Management 4:45(20) Staff Report A - Chandler Investment Report February 2023 B - Chandler Custodial Statement February 2023 C - PARS Pension and OPEB Account Statement February 2023 D - LAIF Account Statement February 2023 4. Subject: ACTION ITEM Consider the Monthly Treasurer's Report for February 2023 Recommended Action: Receive the Monthly Treasurer's Report for February 2023 and recommend filing with City Council Presenter: Thomas Leung, Budget Manager 5:05(10) Page 3 Audit Committee Agenda March 27, 2023 Staff Report A - Report of City-wide Receipts Disbursements and Cash Balances February 2023 B - C D Report of City - Weekly Payment - Weekly Payment --wide Fund BalancesNet Position February Register for the Period Ending Februa1y3, Register for the Period Ending February 2023 2023 10, 2023 E - Weekly Payment Register for the Period Ending February 17, 2023 F - Weekly Payment Rester for the Period Ending February 24, 2023 G - Weekly Payment Register for the Period Ending March 3, 2023 5. Subject: INFORMATIONAL ITEM Consider a Budget Format Review Update Recommended Action: Receive a Budget Format Review Update Presenter: Thomas Leung, Budget Manager 5:15(10) 6. Subject: INFORMATIONAL ITEM Consider the Audit Committee 2023 Schedule and Work Plan Recommended Action: Receive Audit Committee 2023 Schedule and Work Plan and provide direction to staff Presenter: Thomas Leung, Budget Manager 5:25(10) A - Proposed Audit Committee 2023 Schedule and Work Plan 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 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 Page 4 Audit Committee Agenda March 27, 2023 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 5 STATE OF CALIFORNTTA ) SS. CITY OF CL1COTINTY _ SAC-' L:'\ R,, AGE I' AN -12. - C. D F 1�-\ F- CUPERTINO AUDIT COl MITTEE`-NI', 10300 Torre Avenue, City Hall Conference Roo AA,, /, Teleconference r' - - N .9 �DC',i Monday, April 24, 2023 1 _ 4:00 PM- Regular N, ee , ng IN PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION Members of the public wishing comment on an item on the agenda may do so in the following ways: 1) Appear in person at Cupertino City Hall. Members of the audience who address the Committee must come to the lectern/microphone, and are requested to complete a Speaker Card and identify themselves. Completion of Speaker Cards and identifying yourself is voluntary and not required to attend the meeting or provide comments. 2) E-mail comments by 9:00 a.m. on Monday, April 24 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. 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 Committee, click on the link below to register in advance and access the meeting: Online Register in advance for this webinar: https:Hcityofcupertino.zoom.us/webinar/register/WN_zMQ48XXhTgGF-rOT3Ebwjg Phone Page 1 Audit Committee Agenda April 24, 2023 Dial: 669-900-6833 and enter Webinar ID: 982 7631 2198 (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: 982 7631 2198 SIP: 98276312198@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. 5. Members of the public that wish to share a document must email AuditCommittee@cupertino.org prior to speaking. ROLL CALL ORDERS OF THE DAY APPROVAL OF MINUTES 1. Subject: Approve Minutes of Regular Meeting on March 27, 2023 Recommended Action: Approve Minutes of Regular Meeting on March 27, 2023 A - Draft Minutes Page 2 Audit Committee Agenda April 24, 2023 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: INFORMATIONAL ITEM Consider receiving the OPEB & Pension Section 115 Trust Performance Report for the Quarter Ending March 31, 2023 Recommended Action: Receive the OPEB & Pension Section 115 Trust Performance Report for the Quarter Ending March 31, 2023 Presenter: PARS and US Bank 4:15(10) A - OPEB Pension Section 115 Trust Performance Report for Quarter Ending March 312023 3. Subject: ACTION ITEM Consider the Library Construction Audit Final Report Recommended Action: Receive the Library Construction Audit Final Report and forward to City Council Presenter: Moss Adams 4:25(20) A - City of Cupertino Library Construction Audit Final Report 4. Subject: INFORMATIONAL ITEM Consider the Internal Audit Status Report and Fraud, Waste, and Abuse Program Update Recommended Action: Receive the Internal Audit Status Report and Fraud, Waste, and Abuse Program Update Presenter: Moss Adams 4:45(10) A - City of Cupertino Internal Audit Status Report 04-10-2023 5. Subject: ACTION ITEM Consider the Treasurer's Investment Report for the Quarter Ending March 31, 2023 Recommended Action: Receive the Treasurer's Investment Report for the Quarter Ending March 31, 2023 and recommend filing with City Council Presenter: Thomas Leung, Budget Manager, and Chandler Asset Management 4:55(20) Page 3 Audit Committee Agenda April 24, 2023 Staff Report A - Chandler Investment Report March 312023 B - Chandler Custodial Report March 2023 C - PARS Pension and OPEB Account Statement March 2023 D - LAIF Account Statement March 2023 6. Subject: ACTION ITEM Consider the City's Investment Policy Recommended Action: Review and accept the City's Investment Policy Presenter: Thomas Leung, Budget Manager, and Chandler Asset Management 5:15(10) Staff Report A - Cupertino Investment Policy (redline) B - Cupertino Investment Poligy Statement Review Memo 7. Subject: INFORMATIONAL ITEM Consider the Audit Committee 2023 Schedule and Work Plan Recommended Action: Receive the Audit Committee 2023 Schedule and Work Plan and provide direction to staff Presenter: Thomas Leung, Budget Manager 5:25(10) A - Proposed Audit Committee 2023 Schedule and Work Plan - 3.23.23 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 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 Page 4 Audit Committee Agenda April 24, 2023 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 5 STATE OF CALIi1_,1'1`A ) ) SS. CITY OF CUTER I,� AN AGEND i�.:�Y'T: ; C;1 I —� t-Y �)F 0 TPC ',11NO D F. PA RT AUDIT COMMITTEE PENT Ali Y�OF CUPERTINO ,. 10300 Torre Avenue, City Hall Conferentc Room A-/q�e�ere!} _ 4_r d A L ON i,1E Wednesday, May 31, 20231N i3OAKz) Ar CiTY HALL. 4:00 PM SpecialMeeT41E SIGNATURE IN PERSON AND TELECONFERENCE / PUBLIC PARTICIPATION INFORMATION Members of the public wishing comment on an item on the agenda may do so in the following ways: 1) Appear in person at Cupertino City Hall. Members of the audience who address the Committee must come to the lectern/microphone, and are requested to complete a Speaker Card and identify themselves. Completion of Speaker Cards and identifying yourself is voluntary and not required to attend the meeting or provide comments. 2) E-mail comments by 9:00 a.m. on Wednesday, May 31, 2023 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. 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 Committee, click on the link below to register in advance and access the meeting: Online Register in advance for this webinar: https:Hcityofcupertino.zoom.us/webinar/register/WN_Y3nC49CRRw6p Vy4sNxA_OA Phone Page 1 Audit Committee Agenda May 31, 2023 Dial: 669-900-6833 and enter Webinar ID: 959 00221725 (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: 959 00221725 SIP: 959002217250zoomcrc.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. 5. Members of the public that wish to share a document must email AuditCommitteeCcupertino.org prior to speaking. ROLL CALL ORDERS OF THE DAY POSTPONEMENTS ORAL COMMUNICATIONS This portion of the meeting is reserved for persons zvishing 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 Page 2 Audit Committee Agenda May 31, 2023 to a matter not on the agenda. NEW BUSINESS 1. Subject: ACTION ITEM External Auditor Selection Subcommittee Report on City of Cupertino Auditor Selection Recommended Action: Accept subcommittee recommendation and forward to City Council Staff Report A - Cupertino Professional Auditing Services RFP 2023 B — RFP Distribution List C - The Pun Group - Engagement Team Roles and Experience 2. Subject: ACTION ITEM Consider retaining the City's Internal Auditor, Moss Adam, LLP, for an additional three-year term and forward to City Council for approval. Recommended Action: Consider retaining the City's Internal Auditor, Moss Adam, LLP, for an additional three-year term and forward to City Council for approval. Staff report 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 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 Page 3 Audit Committee Agenda May 31, 2023 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 4 CUPERTINO ;:yOyO ;M a i?.i 'l Regular Meeting ROL[ CALL ORDERS OF THE DAY APPROV AL OF MINUTES 1.$: Approve Minutes of Regular Meeting on April 24, 2023Recommended Action: Approve Minutes of Regular Meeting on April 24, 2023A - Draft Minutes 2.$: Approve Minutes of Special Meeting on May 31, 2023Recornrnended Action: Approve Minutes of Special Meeting on May 31, 2023 A - Draft Minutes POSTPONEMENTS ORAL COMMUNICATIONS This portiort of the meet'mg is reserved for persons zoishing to address the Committee on any matterwithirt the jurisdiction of the Committee and ;not on the agertda. Speakers are limited to three (3)minutes. In most cases, State lava will prohibit the Commission from making arxy decisiorts toith respectto a matter not 072 the agenda. OLD BUSINESS NEW BUSINESS 3.J: INFORMATIONAL ITEM Consider receiving OPEB & Pension Section 115Trust Performance Report for Quarter Ending June 30, 2023 Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Reportfor Quarter Ending June 30, 2023 Presenter: PARS and US Bank 4:15(15) Page I AuditCommittee Agenda July24,2023 A - OPEB Pension Section 115 Trust Performance Repoyt for 0uarter Ending June 30 2023 4.l: ACTION ITEM Consider the Treasurer's Investment Report for the Quarter Ending Jrine 30, 2023 Recommended Action: Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2023 and recommend filing with City Council Presenter: Thomas Leung, Budget Manager, and Chandler Asset Management 4:30(10) Staff Report A - Chandler Investment Report Jiu"ie 2023 B - Chandler Custodial Statement June 2023 C - PARS Pension and OPEB Account Statement June 2023 D - LAIF Account Statement June 2023 5. $: INFORMATIONAL ITEM Consider the Quarterly Internal Audit Status Report Recommended Action: Receive the Quarterly Internal Audit Status Report Presenter: Moss Adams 4:40(20) A - Cupertino 0uarterly Internal Audit Status Report 6.$: ACTION ITEM Consider the Enterprise Leadership Assessment Report Recornrnended Action: Receive the Enterprise Leadership Assessment Report and forward to City Council Presenter: Moss Adams 5:00(20) A - City of Cupertino Enterprise Leadership Assessment Final Report 7.$: ACTION ITEM Consider the FY 2023-24 Internal Audit Program Recommended Action: Receive the FY 2023-24 Internal Audit Program and forward to City Council Presenter: Moss Adams 5:20(15) A - City of Cupertino FY 23-24 Intemal Audit Program 8.$: INFORMATIONAL ITEM Consider the Audit Committee 2023 Sdiedule and Work Plan Recornrnended Action: Receive Audit Committee 2023 Sdiedule and Work Plan and provide direction to staff Presenter: Jonathan Orozco, Finance Manager 5:35(10) A - Proposed Atdit Committee 2023 Schedule and Work Plan B - Proposed Audit Committee 2023 Schedule and Work Plan - Redline Page 2 Audit Committee Agenda July 24, 2023 ST AFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING ADJOURNMENT In compliance with the Americarts with Disabilities Act (ADA), anyone who is plaryning to attend thismeeting who is visually or hear'mg impaired or has arty disabi7ih) that needs specia[ assistance shouldcall the City Clerk's Office at 408-777-3223, at least 48 hours in advartce of the meeting to arra'nge forassistance. In addition, upon request, in advartce, by a person with a disability, meet'mg agendas andwritings distributed for the meeting that are public records zoill be made available in the appropriatealternative format. Any zoritings or documents provided to a majority of the members after publication of the agertda w'dlbe made available for public inspectiorx. Please contact the City Clerk's Office'm City Hail 7ocated at10300 Torre Avertue, Cupertirto, California 95014, during normal business hours. IMPORTANT NOTICE: Please be advised that pursuant to Cupertino MunicipaL Code sectiort2.08.l00voritten communications sent to the Cupertino City Courtcil Commissioners or City staffcortcerning a matter ory the agenda are included as supplemerttal materia7 to the agendized item. Thesewritten communicatiorts are accessible to the pub(ic through the City's website and kept in packetarchives. Do rxot irtclude any persona) or private information in written commurtications to the Citythat you do not wish to make public, as zoritten commwicatim'ts are considered public records and zo'dlbe made publicly avai(able 07'l the Cihy website. Members of the public are entit1ed to address the members concerning any item that is described'm thenotice or agenda for this meetirtg, before or during consideration of that item. If you wish to address themembers on any other item not on the agertda, you may do so durirgg the public comment. Page 3 STz"'TE OF CALNFOR"'J[A CITY OF CTTPFRTINO ) SS- 4:00 PA4ULLETNN ROLL CAt,L ORDERS OF THE DAY APPROV At, OF MINUTES 1. $: Approve Minutes of Regular Meeting on July 24, 2023Recommended Action: Approve Minutes of Regular Meeting on July 24, 2023A - Draft Minrites POSTPONEMENTS ORAt COMMUNICATIONS This portio'>q of the meeting is reserved fo'r persoiis wis1iiiig to address the Committee oyz any mattervoithin the jurisdiction of the Coynmittee and not on the agenda. Speakers are limited to three (3)mimttes. In most cases, State law will prohibit t)'xe Commission from mctking any decisions with respectto a matter not 07'l tlie agendct. OLD BUSINESS NEW BUSINESS 2.3: INFORMATIONAL ITEM Receive OPEB & Pension Section 115 TrustPerformance Report for Quarter Ending September 30, 2023 Recommended Action: Receive OPEB & Pension Section 115 Trust Performance Reportfor Quarter Ending September 30, 2023 Presenter: PARS and US Bank 4:15(15) A - OPEB Pension Section 115 Trust Performance Report for 0uarter Ending September 30 2023 3. : ACTION ITEM Receive the Treasurer's Investment Report for the QuarterEnding September 30, 2023 Page I Audit Committee:ommittee Agenda October 23, 2023 Recommended Action: Receive the Treasurer's Investment Report for the Quarter Ending September 30, 2023 and recommend filing v- CTt5r- COti-nci-l Presenter: Thomas Leung, Budget Manager, and Chandler Asset Management 4:30(15) A - Chandler Investment Report September 2023 B - Chandler Custodia) Statement September 2023 C - PARS Pension and OPEB Account Statement September 2023 D - LAIF Account Statement September 2023 : INFORMATIONAL ITEM Receive the Internal Audit and Fraud, Waste, and Abuse program update Recommended Action: Receive the Internal Audit and Fraud, Waste, and Abuse program update Presenter: Moss Adams 4:45(15) A - Cripertino 0uarterly Internal Audit Status Report 5: ACTION ITEM Review the OPEB and Pension Trust Investment Policy Recommended Action: Review and accept the OPEB and Pension Trust Investment Policy Presenter: Jonathan Orozco, Finance Manager, and US Bank 5:00(10) A - OPEB Trust Investment Policy B - Pension Trust Investment Policy : INFORMATIONAL ITEM Receive the Annual Comprehensive Financial Report (ACFR) and AUP Update Recommended Action: Receive the Annual Comprehensive Financial Report (ACFR) and AUP Update Presenter: Jonathan Orozco, Finance Manager 5:20(15) : INFORMATIONAL ITEM Consider the Audit Cornrnittee 2024 Schedule and Work Plan Page 2 AudttCornmittee Agenda October23,2023 Recommended Action: Receive Audit Committee 2024 Schedule and Work Plan andprovide direction to staff Presenter: Jonathan Orozco, Finance Manager 5:35(10) A - Proposed Audit Con-imittee 2024 Schedule and Work Plan ST AFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS FUTURE AGENDA SETTING ADJOURNMENT In compgiance with the Americans rnith Disabi(ities Ad (ADA), anyone who is planning to at thismeeti'ng who is visually or hegring impaired or has any disabilih) that needs special assistance shnuldcal( the City Cierk's Office at 408-777-3223, at least 48 hours in advance of the meeting' to arrange forassistance. In addition, upon request, in advance, h) a persori with a disabiiity, meeting agendas andwritings distributed for the meeting that are public records vnill be made avaiiable in the appropriatealternative fonnat. Any writings or documents provided to a majority of the members afier publir:ation of the agenda willbe made availahle for pubfic inspection. Please contact the City Clerk's Office in City Hag/ iocated at10300 Torre Avenue, Cupertino, Cal@rnia 95014, during normal business hours. IMPORTANT NOTICE: P(ease be ctdvised t7zctt pursuant to Cupertitzo Municipa( Code section2.08.l00written comm-r.trticatiovxs sent to the Cupertino City Coxmcil, Coym'tzissioners or City staffconcerning a matter on the agenda are inchtded as suppleynental inaterial to the agertdized item. Thesewritten com'inunications are accessib(e to the pubiic through the Cih)'s roebsite and kept in paclcetarchives. Do not include any persoyza7 or private information in written conmu.tyiications to the Cityt?xctt you do not wish to make public, as zoritten commvmications are considered public records and wilLbe made pi.iblidy available on the City zoebsite. Members of the public are entitled to rtddress the members co;ncerning any item that is described in tlienotice or agenda for this ineeting, before or during consideratio;n of Uxctt item. If you wis7i to address themembers 02? ayiy otJier item not 07? the agenda, you may do so during the p'ublic commertt. Page 3