Audit 11-27-2012 City of Cupertino
Audit Committee
Special Meeting Minutes
November 27, 2012
1. CALL TO ORDER
At 4:07 p.m. Finance Director Woo called the meeting to order at Cupertino City Hall,
10300 Torre Avenue, Conference Room A.
2. ROLL CALL
Community Members Present: Raymond Yin, Eno Schmidt, Angela Chen
Council Members Present: Rod Sinks, Barry Chang
City Staff Present: David Woo
Absent: None
3. APPROVAL OF MINUTES
Community Member Schmidt moved to approve the minutes of the special meeting of
November 8, 2012. Council Member Chang seconded and the motion passed
unanimously.
4. ORAL COMMUNICATIONS -NONE
5. WRITTEN COMMUNICATIONS -NONE
6. NEW BUSINESS
A. Accept audited financial reports for 2011-12
Mark Wong, Partner at Maze and Associates, presented the audit opinion on the City's
Comprehensive Annual Financial Report (CAFR), the firm's Memorandum on Internal
Control and Required Communications, the Independent Accountant's Report on
Applying Agreed-Upon Procedures for the City's Investment Policy, and the Independent
Accountant's Agreed-Upon Procedures Report on Compliance with the Proposition 111
2011-12 Appropriations Limit Increment. He highlighted upcoming accounting
pronouncements, and redevelopment agency dissolution status.
Woo reported on the overall structure of the CAFR, the fund reserves, and the general
fund income statement. He also reported on the purpose and contents of the unaudited
development impact fee report. Regarding the CAFR, the committee and Woo discussed
fund reserve descriptions, other post employment benefits assumptions and funding,
pension obligations, the impact of the Board of Equalization issue on the financial
statements, state borrowing, and the related party loan. Regarding the investment policy
report, the committee, Wong, and Woo discussed other procedures that can be done to
test controls over cash and investments. Regarding the development impact fee report,
Woo answered questions about showing the due dates of when the fees must be spent.
Council member Chang motioned to accept the audited financial reports for 2011-12.
Community member Chen seconded and the motion passed unanimously.
7. OLD BUSINESS—NONE
City of Cupertino
Audit Committee
Special Meeting Minutes
November 27, 2012
8. OTHER COMMITTEE UPDATES/REPORTS
A. Report on Board of Equalization issue
Since it is disclosed in the financial statements, Woo reported on the issue as part of
Agenda Item 6-A.
9. ADJOURNMENT
The meeting was adjourned at 5:23 p.m.
David Woo
Finance Director