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Audit 07-19-06 City of Cupertino Audit Committee Regular Meeting July 19, 2006 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 A venue, Cupertino. 2. ROLL CALL Community Members: Garrett Wade, Jim Weber City Council: Kris Wang City Staff: David Woo Absent: Myoung Kang, Dolly Sandoval 3. APPROVAL OF MINUTES Wade moved to approve the minutes of the regular meeting of April 26, 2006. Weber seconded and the motion passed unanimously with Kang and Sandoval absent. 4. ORAL COMMUNICATIONS None 6. NEW BUSINESS A. Audit Update Woo reported on the preliminary audit findings. He noted that minor items were found and discussed the auditor's concern that our investment policy was written too stringent with respect to the auditing of the policy. Woo also reported that the fixed asset amount had been raised from $1,000 to $5,000. B. Budget Update. A brief update was provided on the new budget. It was noted that the long-term outlook indicates that expenditures will exceed revenues in the future, partly due to sales tax volatility in the business-to-business area. c. Referendum Update The committee was advised that the item would appear on the November 2006 ballot. D. Pentamation Update Woo reported that the upgrade should be completed in December. He indicated that Code Enforcement would be upgrading in January. July 19, 2006 Audit Committee Minutes Page 2 E. Investment Report Woo reported that investments were reviewed to decrease the unrealized loss and that CD's would not be purchased. 6. ADJOURNMENT The meeting was adjourned at 4:48 p.m.