Audit 02-22-2016 (Special)1. CALL TO ORDER
City of Cupertino
Audit Committee
Special Meeting
February 22, 2016
At 3 :03 p.m. Lisa Taitano called the meeting to order at Cupertino City Hall, 10300
Torre A venue, Conference Room A, Cupertino.
2. ROLL CALL
Committee Members Present: Councilmember Paul, Councilmember Sinks, 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 SA.
3. APPROVAL OF MINUTES
Schmidt moved to approve the minutes of the regular meeting of November 5, 2015
at the next meeting. Shin seconded and the motion passed unanimously.
4. ORAL COMMUNICATIONS -NONE -
5. NEW BUSINESS
A. FY 2014-15 CAFR Review and Acceptance
The committee moved to continue review of CAFR at next meeting with a final
version of the report. Schmidt motioned to have City staff perform analysis of
efficacy for Internal Audit Function to report 6 months from now. Shin seconded and
passed unanimously.
B. FY 2015-16 Mid-Year Budget Report
Alfaro discussed the current draft of the Mid-Year budget with Sankey Chaii and
some Mid-Year budget adjustments. This report will go to council on March 151
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Schmidt motioned to approve the report , Zavislak seconded and passed unanimously.
C. OPEB Actuarial Valuation Report as of January 1, 2015
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Committee did not review report. Committee member Schmidt had two unanswered
questions carried forward from 2015.
D. Discuss governing code and City policies
Taitano discussed government codes and City policies. Zavislak inquired about the
reporting of financial transactions monthly.
E. Annual approval of Investment Policy
The investment policy was approved contingent upon two policy requirements not
being performed be highlighted in the staff report to Council. The two requirements
are contained in the Safekeeping of Securities and Internal Control sections.
Cupertino Audit Committee Page 2
F. Annual Approval of OPEB Trust Investment Policy
Item has been deferred . Schmidt asked that Rick from US Bank review the policy and
make any recommendations to the committee , if any.
G. FY 2016-17 Fee Study review
Item incorrectly on agenda , to be removed.
H. Proposed Cost Allocation Plan review
Item incorrectly on agenda, to be removed.
I. Confirm future committee meeting dates:
L Thursday, 4/14/2 016 (quarters ending 12/31/2015 and 3/31 /2 016)
ii. Thursday, 7114 /2016
iii . Thursday, 10/13 /2016
These dates were not reviewed in the meeting. Subsequent feedback was that we
assume these dates are confirmed and have committee packets delivered to committee
members one week in advance. As these are regularly scheduled meeting dates ,
committee action was not required .
7. OLD BUSINESS
8. ADJOURNMENT
The meeting was adjourned at 6:08p.m.