HomeMy WebLinkAboutCC Ordinance No. 26-2285 amending Cupertino Municipal Code Chapter 2.88 Audit Committee DutiesORDINANCE NO. 26-2285
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
AMENDING MUNICIPAL CODE CHAPTER 2.88 TO RENAME THE AUDIT
COMMITTEE AS THE AUDIT AND FINANCE COMMITTEE, UPDATE ITS
DUTIES, POWERS, AND RESPONSIBILITIES, AND UPDATE THE DIRECTOR OF
FINANCE TITLE
The City Council of the City of Cupertino finds that:
1.On May 20, 2025, the City Council directed the Audit Committee to consider
amendments to its duties, powers, and responsibilities and recommend changes
for City Council consideration.
2.On July 28, 2025, the Audit Committee unanimously recommended amendments
to Chapter 2.88 of the Cupertino Municipal Code to: (1) rename the “Audit
Committee” as the “Audit and Finance Committee”; (2) clarify Section 2.88.100(g)
regarding oversight of the City’s internal controls and internal audit reports; and
(3) add a new provision regarding the review of artificial intelligence as it relates
to financial management, internal controls, risk, and compliance.
3.On October 7, 2025, the City Council considered the proposed amendments and
referred additional matters to the Audit Committee for further consideration,
including meeting frequency and potential expanded financial oversight
responsibilities.
4.On April 27, 2026, the Audit Committee considered the additional matters referred
by the City Council and unanimously recommended retaining the three
previously proposed Municipal Code amendments and maintaining the
Committee’s existing meeting frequency.
5.The City Council subsequently renamed the Department of Administrative
Services as the Department of Finance and retitled the Director of Administrative
Services as the Director of Finance. Section 2.88.110 is amended to reflect the
current position title.
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Ordinance No. 26-2285
Page 2
6.The proposed amendments modernize and clarify the Audit Committee’s duties,
powers, and responsibilities and reflect its broader role in financial and audit-
related oversight.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CUPERTINO DOES
ORDAIN AS FOLLOWS:
SECTION 1. Adoption.
The Cupertino Municipal Code is hereby amended as set forth in Attachment A.
SECTION 2: Severability and Continuity.
The City Council declares that each section, sub-section, paragraph, sub-paragraph,
sentence, clause and phrase of this ordinance is severable and independent of every other
section, sub-section, paragraph, sub-paragraph, sentence, clause and phrase of this
ordinance. If any section, sub-section, paragraph, sub-paragraph, sentence, clause or
phrase of this ordinance is held invalid, or its application to any person or circumstance,
be determined by a court of competent jurisdiction to be unlawful, unenforceable or
otherwise void, the City Council declares that it would have adopted the remaining
provisions of this ordinance irrespective of such portion, and further declares its express
intent that the remaining portions of this ordinance should remain in effect after the
invalid portion has been eliminated. To the extent the provisions of this Ordinance are
substantially the same as previous provisions of the Cupertino Municipal Code, these
provisions shall be construed as continuations of those provisions and not as an
amendment to or readoption of the earlier provisions.
SECTION 3: California Environmental Quality Act.
This Ordinance is not a project under the requirements of the California Environmental
Quality Act, together with related State CEQA Guidelines (collectively, “CEQA”) because
it has no potential for resulting in physical change in the environment. In the event that
this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption
contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty
to have no possibility that the action approved may have a significant effect on the
environment. CEQA applies only to actions which have the potential for causing a
significant effect on the environment. Where it can be seen with certainty that there is no
possibility that the activity in question may have a significant effect on the environment,
the activity is not subject to CEQA. In this circumstance, the proposed action would have
Ordinance No. 26-2285
Page 3
no or only a de minimis effect on the environment. The foregoing determination is made
by the City Council in its independent judgment.
SECTION 4: Effective Date.
This Ordinance shall take effect thirty days after adoption as provided by Government
Code Section 36937.
SECTION 5: Publication.
The City Clerk shall give notice of adoption of this Ordinance as required by law.
Pursuant to Government Code Section 36933, a summary of this Ordinance may be
prepared by the City Clerk and published in lieu of publication of the entire text. The
City Clerk shall post in the office of the City Clerk a certified copy of the full text of the
Ordinance listing the names of the City Council members voting for and against the
ordinance.
INTRODUCED at a regular meeting of the Cupertino City Council on September
1, 2026 and ENACTED at a regular meeting of the Cupertino City Council on
September 15, 2026 by the following vote:
Members of the City Council
AYES: Moore, Chao, Fruen, Mohan, Wang
NOES: None
ABSENT: None
ABSTAIN: None
_____________________________________
Kitty Moore, Mayor
City of Cupertino
______________________________________
Date
_____________________________________
Lauren Sapudar, City Clerk
_______________________________________
Date
_____________________________________
Floy Andrews, Interim City Attorney
Aleshire & Wynder, LLP
_______________________________________
Date
09/21/2026
9/22/2026
9/22/2026
Attachment A
Amendments To Municipal Code Section 2.88 Title and Sections 2.88.010, 2.88.020,
2.88.030, 2.88.060, 2.88.070, 2.88.100, 2.88.110, and 2.88.120
CHAPTER 2.88: AUDIT AND FINANCE COMMITTEE
2.88.010 Established–Composition.
A. The Audit and Finance Committee of the City is established. The Audit and Finance
Committee shall consist of five members as follows:
1.Two City Council members;
2.A minimum of Two and a maximum of three at large members who are not
officials or employees of the City nor cohabit with, as defined by law, nor be
related by blood or marriage to, any member of the committee, the City Manager
or the staff person or persons assigned to the committee.
2.88.020 At Large Member–Qualifications.
An Audit and Finance Committee at large member is not required to be a Cupertino
resident. In selecting an at large member, the City Council shall give priority to
individuals who have substantial accounting, audit, or investment experience,
preferably in connection with a governmental agency.
2.88.030 Terms of Office.
A. Audit and Finance Committee members serve at the pleasure of the City Council.
The term of office of the members of the Audit and Finance Committee shall be for
four years commencing on the date of their respective appointments to the Audit and
Finance Committee and shall end on January 30th of the year the terms are due to
expire. No Audit and Finance Committee member shall serve more than two
consecutive terms unless he or she has been appointed to the committee to fill an
unexpired term of less than two years.
B.The appointment, reappointment and rules governing incumbent members of the
Audit and Finance Committee are governed by the Resolution of the City Council
which governs advisory bodies.
2.88.040 Members–Vacancy Prior to Expiration of a Term.
If a vacancy occurs other than by expiration of a term, it shall be filled by the City
Council’s appointment for the unexpired portion of the term.
2.88.050 Chairperson.
The committee shall elect its chairperson and vice chairperson from among its members
and shall appoint a secretary. Terms of the chairperson and vice chairperson shall be for
one year. Upon approval of the City Council, the City Manager may appoint a secretary
who need not be a member of the committee.
2.88.060 Meetings.
A. The Audit and Finance Committee shall establish a regular time and place of meeting
and rules of conduct thereof and shall hold at least one regular meeting quarterly.
B.A majority of the Audit and Finance Committee shall constitute a quorum for the
purpose of transacting the business of the committee.
2.88.070 Compensation–Expenses.
Members shall serve on the Audit and Finance Committee without compensation, but
all necessary expenses reasonably incurred by them while acting in their official
capacity shall be paid by appropriate action of the City Council.
2.88.080 Majority Vote Required.
A majority vote of the quorum is required to approve a recommendation on any matter
that is presented to the committee which requires a vote.
2.88.090 Records.
The committee shall keep an accurate record of its proceedings and transactions and
shall render such reports to the City Council and Planning Commission as may be
required. These records shall be filed with the City Clerk.
2.88.100 Duties–Powers–Responsibilities.
The powers and functions of the Audit and Finance Committee shall be as follows:
A.To review the annual audit report and management letter;
B.To recommend appointment of auditors;
C.To review the Quarterly Treasurer’s investment report;
D.To recommend a budget format;
E.To review City investment policies and internal controls of such policies;
F.To recommend appointment of internal auditors;
G.To review the City’s internal controls and internal audit reports;
H.To review quarterly Fraud, Waste, and Abuse Program reports;
I.To review the use of emerging technologies such as artificial intelligence in the
City’s financial reporting, internal controls over financial reporting, risk
management, and compliance.
2.88.110 City Staff Assistance.
The Audit and Finance Committee shall have available to it such assistance of City staff
as may be required to perform its functions, the staff assignments and administrative
procedures to be under the general direction and supervision of the Director of Finance.
2.88.120 Procedural Rules.
The Audit and Finance Committee may adopt from time to time such rules of
procedure as it may deem necessary to properly exercise its powers and duties. Such
rules shall be subject to approval by the Council before becoming effective. All such
rules shall be kept on file with the chairperson of the Audit and Finance Committee, the
Mayor, and the City Clerk and a copy thereof shall be furnished to any person upon
request.
2.88.130 Effect.
Nothing in this chapter shall be construed as restricting or curtailing any powers of the
City Council or City officers.
CC Ordinance No. 26-2285 amending Cupertino
Municipal Code Chapter 2.88 Audit Committee
Duties
Final Audit Report 2026-09-22
Created:2026-09-21
By:Araceli Alejandre (AraceliA@cupertino.gov)
Status:Signed
Transaction ID:CBJCHBCAABAA_a0jLFxtYAH84uhxw__qFuknBIZ88APL
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e Chapter 2.88 Audit Committee Duties" History
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STATE OF CALIFORNIA )
COUNTY OF SANTA CLARA )
CITY OF CUPERTINO )
I, LAUREN SAPUDAR , City Clerk and ex-officio Clerk of the
City Council of the City of Cupertino, California, do hereby
certify the attached to be a true and correct copy of Ordinance
No. 26-2285 which was enacted on May 5, 2026, and that it
has been published or posted pursuant to law (G.C. 40806).
IN WITNESS WHEREOF, I have hereunto set my hand and
seal this 22nd day of September 2026.
____________________________________________
LAUREN SAPUDAR, City Clerk and Ex-officio Clerk
of the City Council of the City of Cupertino, California