Audit 10-16-95
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Cupertino
City of Cupertino
CUPERTINO AUDIT COMMITTEE
Special Meeting
October 16, 1995
MINUTES
1.
CALL TO ORDER
Carol Atwood called the meeting to order at 7:40 a.m. in Conference Room A of Cupertino
City Hall, 10300 Torre Avenue.
2.
PLEDGE OF ALLEGIANCE
3.
ROLL CALL
Members Present: Council member Lauralee Sorensen, Council member Joho Bautista,
Administrative Services Director Carol Atwood, City Manager Don Brown and Community
Representative Tom Hall.
5.
ORAL COMMUNICATIONS
None
6.
NEW BUSINESS
a.
The City has recently submitted the 1995-96 Budget for an award from the California
Municipal Finance Officers Association (CMFOA). If received, the City will be notified in
February, 1996.
In addition, the City received an award from the Government Finance Officers Association
(GFOA) for the 1993-94 Anoual Financial Statement. The City plans on submitting future
reports for this award as it is the highest recognized financial award and can result in higher
bond ratings if the City should issue bonds in the future.
b.
Carol Atwood reviewed the status of the 1994-95 audit. The auditors will end their four
weeks of final fieldwork at the City this Friday. Due to the fact that they could not contact
the predecessor audit firm, they have spent additional time testing and confirming the 6-30-94
balances and performing analytical reviews from 1991-1994. The audit reports should be
completed in early December.
c.
Carol reviewed her strategy on investing of funds and then addressed the recommendations of
the KPMG investment audit. The committee agreed to the following;
1. Maturities will be highlighted in the Treasurer's Report;
2. Overall yield will be shown comparing LAIF and one-year treasury note yields;
3. Broker's statements will be reviewed at the committee level and not attached to the
monthly treasurer's report;
March 27,1995
Cupertino Audit Committee
Page 2
4. New accounts and/or brokerage relationships will be discussed with the committee prior
to City Council approval (consent calendar);
5. Multiple (at least two) bids will be obtained when purchasing mortgage obligations or
corporate notes/bonds.
6. The Finance department will research the reductions and subsequent restoration of
investment balances during the March 1990 and March 1992 timeperiods;
7. All missing Dean Witter statements will be obtained in conjunction with the litigation.
In addition., the Finance division will be preparing an internal control policy document for
investments to be reviewed by this committee at its next meeting.
d.
The article Fiduciary Responsibilities of City Council as distributed by the League of
California Cities was included for information.
e.
Next items for the agenda will include the annual investment policy, internal control policy on
investments, review of the 1994-95 audit and review of the most recent broker statements.
ADJOURNMENT
At 8:42 a.m. the committee concurred to adjourn to December 11, 1995, in conference room A.
~~
Carol Atwood
Chair
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