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Audit 07-24-01 City of Cupertino Audit Committee Regular Meeting July 24, 2001 1. CALL TO ORDER At 8:07 a.m., Carol Atwood called the meeting to order in Conference Room A, Cupertino City Hall, 10300 Torre Avenue. 2. ROLL CALL Community Members: Gillian Enos, Tom Hall City Staff: Carol Atwood, Dorothy Steenfott City Council: Richard Lowenthal Absent: Sandra James 3. APPROVAL OF MINUTES Tom Hall moved to approve the minutes of the regular meeting of April 26, 2001. Richard Lowenthal seconded and motion passed unanimously with Sandra James absent. 4. NEW BUSINESS A. Budget adoption and follow up worksession Carol Atwood reviewed the budget worksessions and processes. She stated that the city is not receiving any new revenues at this time and reviewed the revenues at risk. She also reviewed the fund balance trends and reported that the $15 million in reserves was cut by four million to cover costs associated with the library project. Gillian Enos expressed concern regarding the cost of the library and cutting reserves to cover some of the cost. She suggested that the Audit Committee inform City Council of its concern. The committee agreed to make a comment and Carol Atwood stated that she would make the comment during the next council worksession. B. Finance reorganization Carol Atwood reported that Carol Ferrell had been appointed the new Finance Manager and reviewed the reorganization plans for the Finance Division. July 24,2001 Audit Committee Page 2 C. Year end close It was reported that the auditors would be in during September to begin the June 30,2001 audit. D. Investment report Carol stated that interest rates have dropped and that the city's portfolio has been diversified to obtain better rates than LAIF. 5. ADJOURNMENT The meeting was adjourned at 9: 15 a.m.