Audit 07-19-2012 City of Cupertino
Audit Committee
Regular Meeting Minutes
July 19, 2012
1. CALL TO ORDER
At 4:05 p.m. David Woo called the meeting to order at Cupertino City Hall, 10300 Tone
Avenue, Conference Room A.
2. ROLL CALL
Community Members Present: Raymond Yin, Eno Schmidt, Angela Chen (arrived 4:10
p.m.)
Council Members Present: Rod Sinks
City Staff Present: David Woo
Absent: Barry Chang
3. APPROVAL OF MINUTES
Community Member Yin moved to approve the minutes of the regular meeting of April
24, 2012. Council Member Sinks seconded and the motion passed unanimously, with
Council Member Chang and Community Member Chen absent.
4. ORAL COMMUNICATIONS -NONE
5. WRITTEN COMMUNICATIONS -NONE
6. NEW BUSINESS
A. Treasurer's Investment and Budget Report for June 2012
Finance Director Woo went over the written report discussing the portfolio composition,
securities purchased, and yield of the City investments. He also discussed the returns,
investment allocation, and fund Morningstar rankings of the PARS retiree health trust. In
response to Committee questions,he discussed the background and reasons for
establishing the PARS trust and its investment portfolio mix that differs from the City
portfolio. Woo reported on the General Fund Budget Report for June 2012 highlighting
and answering questions on revenue and expense fluctuations from last year and the
budget.
Community Member Schmidt motioned to accept the report, Yin seconded, and the
motion passed unanimously with Council Member Chang absent.
B. Interim Audit Report for 2011-12
Mark Wong and David Alvey, of Maze and Associates, presented their Interim
Accounting Issues Memo for the 2011-12 annual financial audit. They discussed
Redevelopment Agency dissolution matters, internal control testing results, and new
Governmental Accounting Standards Board accounting rules.
C. Auditor Discussion with Committee
As required by audit procedures,Wong and Alvey discussed audit approach and fraud
issues with the Committee, without City staff present.
City of Cupertino
Audit Committee
Regular Meeting Minutes
July 19, 2012
7. OLD BUSINESS -NONE
8. OTHER COMMITTEE UPDATES/REPORTS—NONE
9. ADJOURNMENT
The meeting was adjourned at 6:30 p.m.
II
David Woo
Finance Director