Audit 03-21-2016 (Special)1. CALL TO ORDER
City of Cupertino
Audit Committee
Special Meeting
March 21, 2016
At 3 :04 p.m. Lisa Taitano called the meeting to order at Cupertino City Hall , 10300
Torre A venue , Conference Room A, Cupertino.
2. ROLLCALL
Committee Members Present: Councilmember Sinks, Councilmember Paul , Eno
Schmidt, Mark Zavislak, Peter Shin
City Staff Present: Kristina Alfaro, Lisa Taitano, Karen Guerin, Cheuk Law
Absent: None
Guests: Mark Wong (Maze & Assoc.), for item B.
3. APPROVAL OF MINUTES
Schmidt moved to approve the minutes of the regular meeting of November S, 201S,
Sinks seconded and the motion passed unanimously. Schmidt moved to approve the
February 22 , 2016 meeting minutes contingent on correcting them as noted:
1) Item SA , change "committee members " to "City Staff';
2) Item SC , add "Committee did not review report , Schmidt had unanswered
questions carried forward from 201 S";
3) Item SD , add "Zavislak inquired about the reporting of financial transactions
monthly";
4) Item SG and SH , change to "Item incorrectly on agenda, to be removed ";
S) Adjournment time was 6:08 p.m. Sinks seconded and the motion passed
unanimously .
4. ORAL COMMUNICATIONS -NONE -
5. NEW BUSINESS
A . Appoint Committee Chair and Vice Chair
Sinks nominated Schmidt for Committee Chair, Paul second and passed unanimously.
Schmidt nominated Zavislak for Vice Chair, Shin seconded and passed unanimously.
Schmidt submitted to committee his Audit Committee Work Plan and Summary of
Duties. A new item will be added to the minutes of this meeting entitled, Review of
Progress on Uncompleted Action Items from Previous Meetings.
B. FY 2014-15 CAFR Review and Acceptance
The committee reviewed the CAFR repo1i. Shin motioned to approve subject to; 1)
Restatement of 2014 statistical numbers , and 2) Final audit opinion. Zavislak
seconded and passed unanimously.
Shin stated that pension related $29 .9 million fund balance restatement needs to be
verified with the calculation base, and $2. 7 million reduction to be verified with the
actual financial records.
Cupe1iino Audit Committee Page 2
Zavislak motioned to have City Staff add a Cupertino Library statistics page to next
fiscal year 's CAFR stat section, Sinks seconded and motion passed unanimously.
Shin motioned to have the CAFR signed off by Administrative Services Director and
City Manager prior to it going to Audit Committee for next fiscal year's report. Sinks
seconded and motion passed unanimously.
C. Annual approval of Investment Policy
Meeting adjourned before reaching item , moving to subsequent Audit Committee
meeting.
D. Annual approval of OPEB Trust Investment Policy
Meeting adjourned before reaching item, moving to subsequent Audit Committee
meeting.
E. Committee Member Shin's MD&A questions sheet
Committee member Shin provided a list of questions regarding MD&A to be
addressed to Mark Wong of Maze and Associates.
7. OLD BUSINESS
A. OPEB Actuarial Valuation Reports as of January 1, 2015
Meeting adjourned before reaching item , moving to subsequent Audit Committee
meeting.
8. ADJOURNMENT
The meeting was adjourned at 5:25p.m.
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