Audit 11-12-2014 City of Cupertino
Audit Committee Meeting
November 12,2014
1. CALL TO ORDER
At 4:09pm November 12th Lisa Taitano called the meeting to order at Cupertino City Hall,
10300 Torre Avenue,EOC
2. ROLL CALL
Community Members Present: Eno Schmidt, Raymond-Yin
-City Staff Present: Kristina Alfaro, Lisa Taitano
Council Present: Rod Sinks, Mark Santoro
Absent: Angela Chen
Guests: Mark Wong, Grace Zhang(Maze&Assoc.), both left after completing item D
Rick Rosenthal (US Bank),Jennifer Meza and Mitch Barker (PARS), all left after-completing
item A
3. APPROVAL OF MINUTES
Schmidt moved to approve the May 28th and August 27th meeting minutes,Yin seconded and
the motion passed unanimously.
4. ORAL COMMUNICATIONS—
Amended Agenda to add Old Business Item of Investment Policy
S. .WRITTEN COMMUNICATONS—NONE
6. NEW BUSINESS
A. Retiree Health Trust Annual Performance Report by US Bank
Mitch Barker from PARS, OPEB Trust Administrator and Consultant, spoke about a
new pre-fund pension option. Schmidt asked to calendar discussion for this new option.
Rick and Jennifer from US Bank gave a plan presentation overview as of 8/31/14.
Schmidt asked for Fixed Income holdings to be added to report and Rick(US Bank)
confirmed he would do that going forward.
B. Treasurer's Investment Report for Quarter Ending Sept. 30,2014
a. Composition of Agency securities added to analytical presentation
Taitano presented the Treasurer's Investment report encompassing portfolio composition,
agency diversification, yield comparison as well as policy compliance. Taitano
concluded that she will work on enhancing the annual agreement with Maze that will
embed a higher level of scrutiny in scope of work for next year. Schmidt moved to
accept report subject to Taitano adding an overlay of LAIF balance to Yield Comparison
graph. Yin seconded and the motion passed unanimously.
C. Discussion on Treasury function in the Administration Services Dept./Finance Div.
Taitano explained the roles of the City's Treasury function and Finance staff and how
their new ERP system will give them three times greater strength in controls. Schmidt
asked Taitano to show the IT agreement on policy with new system at the next meeting.
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D. FY2013-14 CAFR review and acceptance
Committee members and auditors (Maze) discussed and reviewed the report. Committee
member, Schmidt, suggested adding some statistical data about the library to the
Statistical section. Schmidt moved to accept the report as discussed,Yin seconded and
the motion passed unanimously.
E. FY2014-15 First Quarter Financial Report
Alfaro discussed the condensed report with the Sankey chart,highlighting the most
important things.Alfaro said they would like to use this template going forward.
Yin motioned to approve report, Schmidt seconded and the motion passed unanimously.
7. OLD BUSINESS—•City Investment Policy
Yin motioned to accept policy, Schmidt seconded.and the motion passed unanimously.
8. OTHER COMMITTEE UPDATES/REPORTS
The committee members, staff and council members present, confirmed that Angela Chen's
absence doesn't count as this meeting was not held on its regularly scheduled date.
9. ADJOURNMENT
Meeting was adjourned at 6:59pm
ary Re
Recording ecretary
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