Audit 01-10-97
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Cupertino
City of Cupertino
CUPERTINO AUDIT COMMITTEE
Regular Adjourned Meeting
January 10, 1997
MINUTES
1.
CALL TO ORDER
Carol Atwood called the meeting to order at 8:07 a.m. in Conference Room A of Cupertino
City Hall, 10300 Torre Avenue.
2.
ROLL CALL
Councilmembers: John Bautista
City Staff: Don Brown, Carol Atwood and Jesse Takahashi
Community Representatives: Tom Hall and Emily Wagner
3.
APPROVAL OF MINUTES October 28, 1996
Motion by Tom Hall; Second by John Bautista. Approved by all present.
4.
ORAL COMMUNICATIONS
None
5.
NEW BUSINESS
Carol Atwood gave a follow up on the Worker's Compensation Fund discussing trends in
the expenditures for the last five years. Per analysis by Bill Woska, Human Resources
Manager, the increase in annual claim costs from $140,000/yr to $180,000/yr starting in
1993-94 is attributable to the severity of the claims filed and the fact that several employees
retired on WC disability. There were no trends identified as to a specific injury or
department. HR will continue to monitor and keep the committee informed.
The 1995-96 audit report was reviewed and the committee discussed each fund as to its net
results for the year. The format of the report has changed slightly with the addition of
comparative 1994-95 statements by fund. The City received a clean opinion from the
auditors. In addition, there were no findings or questioned costs associated with our federal
assistance programs (Single Audit) for the year.
Jesse Takahashi updated the group on the audit management letter comments. Only one
comment was received in 1995-96 which pertained to cash controls. Jesse had already
performed his own review of those controls at all city sites and Finance will implement
changes in early 1997. The only other outstanding comment from the prior year relates to
the disaster recovery plan for the Finance system. This plan is to be implemented as part of
the Finance/HR system upgrade in 1997.
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Carol Atwood reviewed the new investment legislation for 1996 and the City will be in full
compliance with the adoption of the annual investment policy and the reappointment of the
Treasurer and Deputy Treasurer in January. Several new statements were discussed for
inclusion into the monthly treasurer's report to provide better information to Council. They
include a cash flow analysis and a compliance chart.
The committee agreed to change the meeting time to the last Friday of the month following
a quarter. Future meeting dates will be April 25, July 25, October 24. Dates are tentative
pending approval of all member calendars.
Items for the next meeting include:
. Discussion of the 1997-98 Budget;
. Status ofthe network and Finance/HR conversion
ADJOURNMENT
At 8:57 am the committee adjourned to April 25, 1997 at 8:00am, Conference room A .
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Carol Atwood, Chair
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