Audit 07-29-96
City of Cupertino
CUPERTINO AUDIT COMMITIEE
Regular Adjourned Meeting
July 29, 1996
MINUTES
City of
Cupertino
1.
CALL TO ORDER
Carol Atwood called the meeting to order at 7:45 a.m. in Conference Room A of Cupertino
City Hall, 10300 Torre Avenue.
2.
ROLL CALL
Members Present: Councilmember Lauralee Sorensen, Administrative Services Director
Carol Atwood and Community Representative Tom Hall. Members Absent: City Manager
Don Brown and Councilmember John Bautista.
3.
APPROVAL OF MINUTES May 20, 1996
Motion by Sorensen; Second by Hall. Approved by all present.
4.
ORAL COMMUNICATIONS
None
5.
NEW BUSINESS
Extension of the committee membership was discussed. Our current bond underwriter,
Emily Wagner, has agreed to serve on the committee to add expertise in the municipal
investment arena. The committee felt that Emily was qualified and would also like to
advertise in the Scene to see if more applicants come forward. Lauralee Sorensen asked if
Ms. Wagner could come to the October meeting.
The committee decided to change the meeting time from 7:30 am to Sam.
Jesse Takahashi discussed the status of the 95-96 audit. Preliminary audit work was
performed in June and final is scheduled for September 16. The auditors will be at the City
for approximately four weeks. In addition to the regular City audit, we will have an
actuarial audit performed on our workers compensation reserves to ascertain whether the
City reserve is at an appropriate level for existing claims.
Carol Atwood briefly discussed a pending Governmental Accounting Standards Board
(GASB) exposure draft which would require the city to record "paper market loss/gain" on
the investment portfolio. Cities have not done this in the past as it is generally the intent to
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hold investments to maturity, thus avoiding any loss. Recording of market fluctuations can
confuse the general public as to whether it is an incurred loss or simply a temporary market
fluctuation that will never be incurred. We should have more on this issue at the October
meeting.
Items for the next meeting:
. Committee member nominees - fmalize;
. Summary of the 95-96 City audit, including management letter comments;
. Summary of the 95-96 actuarial audit;
. GASB investment update.
ADJOURNMENT
At S:10 am the committee concurred to adjourn to October 2S, 1996 at 8:00am, Conference room
A.
~~
Carol Atwood, Chair
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