Audit 01-19-05
City of Cupertino
Audit Committee
Regular Meeting
January 19, 2005
1. CALL TO ORDER
At 4:08 p.m., Carol Atwood called the meeting to order at Cupertino City Hall,
Conference Room E, 10300 Torre Avenue, Cupertino.
2. ROLL CALL
Community Members: Myoung Kang, Garrett Wade, Jim Weber
City Council: Dolly Sandoval, Kris Wang
City Staff: Carol Atwood
3. APPROVAL OF MINUTES
Sandoval moved to approve the minutes of the regular meeting of October 20, 2004.
Wade seconded and the motion passed unanimously with Weber abstaining.
4. ORAL COMMUNICATIONS
None
6. NEW BUSINESS
A. 2004 Audit Report
Cory Biggs, Maze and Associates, reviewed the financial statements. He reported
that the City had a net loss with operating expenditures coming in two million
dollars higher than operating revenue. He stressed the importance of finding new
revenue sources to eliminate future net losses. He reported that the
Redevelopment Agency is still in start-up mode and that once property is
developed, reporting and compliance will become effective. He noted that there
were five small adjustments that occurred during the audit.
Atwood distributed the City's responses to the Management Letter. She indicated
that the City concurs with all of the items and is taking appropriate action.
B. Vacant Finance Director Position
The committee was informed that Carol Augustine had accepted another position
and the impact of the vacancy on the Finance Division was discussed. A contract
employee may be hired to assist with the financial audit for 2005. The committee
expressed great concern that such a key position was not being filled.
January 19, 2005
Audit Committee
Page 2
C. Renew/Extend Auditor Agreement
Atwood requested that the committee approve an extension of the Maze and
Associates agreement for three years. She stated that with the Finance Director
position vacant, working with seasoned auditors would be very beneficial. She
noted that Maze and Associates have been doing an excellent job and have agreed
to reduce their price for the first year if a three-year extension is granted. Wade
moved to extend the Maze and Associates contract for three years. Wang
seconded and the motion passed unanimously with Sandoval absent.
7. OLD BUSINESS
A. Workers' Compensation Emergency Medical Information for Part-Time
Employees
Atwood informed the committee that the City would not be able to implement a
plan for part-time employees to see their own doctors for work related injuries.
She stated that doctors are no longer taking workers' comp cases and will not sign
authorization forms for full-time or part-time employees.
B. Investment ReportlBudget Status
Atwood stated that revenues are expected to come in at budget and that
department expenditures are down 18 percent due to the hiring freeze.
C. Bank Transfer Status
It was noted that the account with Cupertino National Bank would remain open
through the end of February and that the City should see savings of about $40,000
a year with Wells Fargo Bank.
6. ADJOURNMENT
The meeting was adjourned at 5:18 p.m.
ott, Recordi Secretary