CC 06-06-2025 Item No. 1. Written Communications1
Lauren Sapudar
From:Lisa Warren <la-warren@att.net>
Sent:Friday, June 6, 2025 1:08 PM
To:City Clerk; City Attorney's Office; City Council
Cc:Lisa Warren
Subject:Closed Session CC mtg June 6, 20225 Agenda Item 1 - public comment
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the
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City Attorney and City Council,
I bothers me that I feel the need to send this message that will become public record.
I learned of today's Closed Session meeting a short while ago. I am 'confused ?', and
imagine that others are equally unsure of the surprising subject matter of the agenda
item. I can only speculate what it may be alluding to. Is it that the council's a greement
to settle an 'offer' is being undermined ? By whom, and how ? I don't know what to
think, and certainly no one can 'share', so I won't ask.
I sense (but know that I can't confirm) that Pamela Wu may be trying to 'renege' on
something. Something that is the 'pleasure of the council', and presumably something
that she proposed. If so, then my reaction is 'I am not surprised'.
"I serve at the pleasure of the council". In the last couple of years, these words were
often stated by the then city manager, Pamelu Wu, in public settings. Of course, saying
it does not make it so.
The statement matches the job description. What it is meant to cover is the entire city
council. All five members. There are many, many instances both in the background,
and in full public view, that illustrated Pamela Wu did not meet the mark.
I do, of course, realize that a non-unanimous or majority vote on the dais can mean that
some council members are not having their 'pleasure served'. So Democracy goes.
But when individual council members are 'handled' or 'treated' differently by a city
manager then there should be great concern by management level staff and everyone
else, including residents (top of the org chart).
I, and many others, are aware of numerous situations where there was more of an 'I will
do it my way' or 'I will ignore you' vibe. I personally stopped trying to communicate
with CM Wu within the first year of her employment in the city. It was essentially
useless, so I reached out to others on staff when needed.
There is a long list of examples where CM Wu deviated from required protocol,
procedures, and reasonable expectations.
She did this in ways that have already been shared with this current council in recent
meetings on the subject of CM Wu.
2
I have mentioned some in past closed session 'evaluations'. But today's meeting is
something different. As I stated above, I don't know what the agenda item is 'about',
but it seems totally unnecessary. What happened between Tuesday and Thursday to
require another discussion? I heard City Attorney report out of the June 4 Closed
Session. And it surely sounded like we were 'done' (my words) with discussing the
subject.
I have no time to locate and re-send the emails that I provided in recent closed session
mtgs. And in some cases I spoke during oral communications without providing written
material. I was tempted to do that today, but my schedule/commitments won't allow
for that.
Lisa Warren
3
Lauren Sapudar
From:Rhoda Fry <fryhouse@earthlink.net>
Sent:Friday, June 6, 2025 1:04 PM
To:Liang Chao; 'Kitty Moore'; Sheila Mohan; J.R. Fruen; R "Ray" Wang; City Clerk
Subject:For the June 6 City Council Meeting
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
Dear City Clerk, please include the following in the written communications for today’s only agenda item.
Dear City Council,
I think that it is unfortunate that the City intends to pay Pamela Wu any severance.
Clearly she is being let go for cause otherwise you would not be endeavoring to let her go.
Although I get it, you don’t want to go through the headache of a lawsuit so please find a middle-ground.
You have many letters, so I won’t repeat.
More information comes out daily – like her taking out the city attorney and assistant city manager out to an
expensive lunch using our public funds.
It also sends a message to other employees that everyone is entitled to something extra using public money.
Meanwhile, services for residents are being cut and expenses for services are escalating.
I would suggest that if she is to receive anything over 2 months of severance pay, that the alleged investigation
that was made be made public.
The public has paid for the investigation and should have a right to see it.
We need transparency on this issue.
Thank you for ending her pattern of over-spending, failing to adhere to council direction (not remodeling
Torre), being rude to councilmembers and the public, abusing public funds for vanity projects (purchasing a
building), being fiscally irresponsible (allowing $60M to earning 0 interest and defending it), not adhering to
the law (divulging confidential CDTFA information in public meetings outside of the city and not providing
timely or complete financial reports), and more.
Regards,
Rhoda Fry
4
Lauren Sapudar
From:Anne Ezzat <aezzat95014@gmail.com>
Sent:Friday, June 6, 2025 12:31 PM
To:Liang Chao; Kitty Moore; Sheila Mohan; J.R. Fruen; R "Ray" Wang; City Clerk
Subject:Item #1
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sender and know the content is safe.
Dear Mayor Chao, Vice Mayor Moore, Council Members Mohan, Fruen, and Wang,
Regarding item 1, I do not believe that Ms. Wu is a good fit as City Manager for the following reasons:
In 2024, Ms. Wu traveled to India on a sister city trip and stayed at the Ritz Carlton in Bangalore for a
weekend. I could find no record stating that these expenditures, paid by tax dollars, were authorized by the
Council. Under Municipal Code, the Council should have authorized these expenditures. Also, where are the
reports for the sister city trips to Taiwan and India?
Ms. Wu resurrected an archaic rule that changed written public comment so that writers needed to
explicitly state they wanted the comments added to the public record. This served to add an additional barrier
to those wanting to participate in the process and limited transparency.
Under Ms. Wu’s stewardship, the city had approximately $50 million in a non -interest bearing account.
When this was brought to the attention of the City Manager, it was initially defended. When the money was
moved to a more suitable interest-bearing account, it was not made public. The money that could have been
earned could have funded a number of city programs.
For the reasons above and more, I believe that Ms. Wu should not remain as city manager. Please add my
comments to the public record.
Thank you for your time and consideration.
Best regards,
Brooke Ezzat
5
Lauren Sapudar
From:Jim Lee <jimlee95014@gmail.com>
Sent:Friday, June 6, 2025 12:05 PM
To:City Council; City Clerk
Subject:Written comments for 6/6 Special Council Meeting
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sender and know the content is safe.
Dear City Council and City Clerk,
I am surprised to see what appears to be yet another City Manager-related special session tonight. Per
Tuesday's City Council meeting, Council already voted 4-1 on a settlement. Why is this topic being
revisited?
If the former City Manager truly cares about Cupertino, she should let the City move on. Dragging out an
exit does not benefit anyone, and is instead exemplary of the behavior that led to this unfortunate end
decision.
Jim
On Fri, May 2, 2025 at 7:36 AM Jim Lee <jimlee95014@gmail.com> wrote:
Written comments for 5/2 City Manager Performance Evaluation
Dear City Council,
"I serve at the pleasure of City Council." We hear City Manager Wu say this line repeatedly during
Council meetings.
But it doesn't take long to see the hypocrisy of this statement. Wu only serves at the discretion of certain
Councilmembers whom she favors.
I have seen requests from Liang Chao and Kitty Moore, both when they were Councilmembers and now
when they are Mayor and Vice Mayor, continually be met with delay, relegation to the "TBD List" which is
a place agenda items go to die, or worst of all, a false agreement but it never gets done. Does this sound
like "serving at the leisure of Council" to you?
A few specific examples, but there are many more:
- Why is the City Hall renovation taking so long to get back into the CIP? The new Council majority has
asked for it endlessly. The work has already been done. Is it because the City Manager would rather
delay this project in hopes that a new Council might vote to rebuild a brand new City Hall? The continual
delay of this project feels like willful insubordination.
6
- Why did it take 4-5 months to get a list of 20 CWP items prioritized? From start to finish, the process
was unnecessarily dragged out. When Mayor Chao requested changes, City Manager Wu complained
that Chao had created an "entirely new" list and took even more weeks to incorporate changes. We pay
the City Manager over $300K/year. Handling lists should not be difficult.
- Why did it take months to figure out how to handle $65M in a non-interest-bearing checking account?
This is an egregious loss of taxpayer dollars and financial mismanagement.
I trust the City Council to make the right decision on the City Manager.
Jim
7
Lauren Sapudar
From:Peggy Griffin <griffin@compuserve.com>
Sent:Friday, June 6, 2025 10:28 AM
To:Liang Chao; Kitty Moore; J.R. Fruen; Sheila Mohan; R "Ray" Wang
Cc:City Clerk
Subject:2025-06-06 City Council Closed Session-ITEM1 Employee Discipline/Dismissal/Release
Attachments:CM_Wu_Eval_EMAILS.pdf
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
PLEASE INCLUDE THIS EMAIL AND THE ATTACHMENT AS PART OF WRITTEN COMMUNICATIONS FOR THE ABOVE
CITY COUNCIL AGENDA ITEM.
Dear Mayor Chao, Vice Mayor Moore and Councilmembers,
Enough is enough!
Attached are emails I have sent over a period of 2 years regarding City Manager Wu’s performance. When I re-read
these emails I realized that it is an escalating pattern of misbehavior during Council meetings, abuse of her
position, misappropriations of public funds, refusal to follow council directions, refusal to keep both the Council
and the public informed regarding the status of our city, and violations of both her contract and our municipal
codes.
During the 2024 election period in the fall, under her leadership an employee of the city used city property to steal
campaign signs of Vice Mayor Moore and Councilmember Wang. She also has presented the status of the city to
both the Cupertino Chamber of Commerce and a religious group but has not bothered to present to the
public/Council.
City Manager Wu has a salary that is one of the highest in the city. She has used public funds for an unauthorized
trip to India, charged meals at high-end restaurants and spent hundreds of thousands of dollars on coaching for
herself. All this using public tax dollars. She has been compensated way beyond what is reasonable. Consider the
coaching costs as her severance. Do not pay a penny more.
Sincerely,
Peggy GriƯin
2025-05-02
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Peggy Griffin
From:Peggy Griffin <griffin@compuserve.com>
Sent:Thursday, May 1, 2025 11:03 PM
To:'Liang Chao'; 'Kitty Moore'; rwang@cupertino.gov; 'Sheila Mohan'; jrfruen@cupertino.gov; City
Attorney's Office
Cc:'City Clerk'
Subject:2025-05-02 City Council Meeting - Agenda Item1-City Manager Evaluation/discipline
Attachments:Costs for Baker Tilly Executive Coaching.pdf; Costs for Klarity Consulting Executive Coaching.pdf
PLEASE INCLUDE THIS EMAIL AND ALL ATTACHMENTS AS PART OF WRITTEN COMMUNICATIONS FOR THE ABOVE MEETING
AGENDA ITEM.
Dear Mayor Chao, Vice Mayor Moore, Councilmembers and City AƩorney Floy,
Based on Accounts Payable documents, I found that our taxpayer dollars have paid for hours of coaching for our city manager.
When were all these hours for coaching taking place? Where they during business hours? If so, along with all the travel, when
was our city manager in CuperƟno performing her duƟes? Was this at the cost of other staff member training?
It seems like contracts that directly benefit an employee should be approved by others.
CM Pamela Wu Coaching Contracts
Klarity ConsulƟng, LLC
ExecuƟve Coaching & Mentoring
$41,340.00 from April 2024-February 2025
Agreement for $7,200.00 through Dec. 2024:
hƩps://records.cuperƟno.org/WebLink/DocView.aspx?id=1097128&dbid=0&repo=CityofCuperƟno&searchid=e7984bdd-8ec0-
4771-bbb3-c83baac757ba
First Amendment for $150,000 through June 2025:
hƩps://records.cuperƟno.org/WebLink/DocView.aspx?id=1101051&dbid=0&repo=CityofCuperƟno&searchid=e7984bdd-8ec0-
4771-bbb3-c83baac757ba
Second Amendment through June 2027:
hƩps://records.cuperƟno.org/WebLink/DocView.aspx?id=1154024&dbid=0&repo=CityofCuperƟno&searchid=e7984bdd-8ec0-
4771-bbb3-c83baac757ba
Baker Tilly US, LLP
ExecuƟve coaching for PWu
$9,625.00 from December 2022-February 2024
Q: Where is the contract for this work?
I only see the 1-day council workshop contract not to exceed $17,900.00-no execuƟve training. I cannot find it on the
city’s website.
Council 1-day Workshop Contract:
hƩps://records.cuperƟno.org/WebLink/DocView.aspx?id=1002914&dbid=0&repo=CityofCuperƟno&searchid=c81a4ff5-2cb7-
4823-b351-3f27947637f3
TOTAL COST OF EXECUTIVE COACHING = $50,965.00
Sincerely,
Peggy Griffin
2
P.S. I find it worrisome that someone can issue a contract for their own benefit and be the major signer on that contract…
Date Payee Name Invoice Number Invoice DateInvoice AmountDescription
2/24/2023 Baker Tilly US, LLP BT2263242 12/7/2022 $1,522.50 Executive Coaching Pamela Wu
8/11/2023 Baker Tilly US, LLP BT2500878 8/3/2023 $402.50 Executive Coaching For PWu Through July 2023
6/16/2023 Baker Tilly US, LLP BT2458804 6/6/2023 $632.50 Executive Coaching For PWu
10/20/2023 Baker Tilly US, LLP BT2526933 9/8/2023 $2,357.50 Executive Coaching For PWu through August 2023
10/20/2023 Baker Tilly US, LLP BT2556122 10/4/2023 $287.50 Executive Coaching For PWu through Sept 30,2023
7/28/2023 Baker Tilly US, LLP BT2478907 7/7/2023 $690.00 Executive Coaching For PWu through June 30,2023
7/28/2023 Baker Tilly US, LLP BT2415365 5/4/2023 $225.00 FY 22-23 Executive Coaching For PWu
6/30/2023 Baker Tilly US, LLP BT2334680A 3/3/2023 $690.00 Executive Coaching For PWu provided through February 2023
4/21/2023 Baker Tilly US, LLP BT2370827 4/7/2023 $460.00 Executive Coaching CM Wu
11/17/2023 Baker Tilly US, LLP BT2598038 11/7/2023 $977.50 Fees for PWu Coaching Provided Through October 31,2023
12/15/2023 Baker Tilly US, LLP BT2622249 12/5/2023 $402.50 Executive Coaching For PWu
4/5/2024 Baker Tilly US, LLP BT2648477 1/4/2024 $172.50 Fees for coaching provided through December 31, 2023
3/29/2024 Baker Tilly US, LLP BT2676617 2/7/2024 $345.00 Executive Coaching For PWu provided through January 2024
3/29/2024 Baker Tilly US, LLP BT2707046 3/7/2024 $460.00 Executive Coaching For PWu provided through February 2024
Date Payee Name Invoice NumberInvoice Date Invoice AmountDescription
6/14/2024 Klarity Consulting, LLC 2024-004 6/10/2024 $3,480.00 Executive Coaching & Mentoring - May 2024 Services
5/24/2024 Klarity Consulting, LLC 2024-001 5/10/2024 $840.00 Executive Coaching Services - April to May 2024
7/26/2024 Klarity Consulting, LLC 2024-005 7/10/2024 $12,960.00 FY23-24 Executive Coaching and Mentoring - June 2024 Services
9/13/2024 Klarity Consulting, LLC 2024-010 9/10/2024 $3,360.00 Executive Coaching & Mentoring - August 2024 Services
9/13/2024 Klarity Consulting, LLC 2024-008 8/10/2024 $8,400.00 Executive Coaching & Mentoring - July 2024 Services
11/1/2024 Klarity Consulting, LLC 2024-011 10/10/2024 $5,280.00 Executive Coaching & Mentoring - September 2024 Services
12/12/2024 Klarity Consulting, LLC 2024-016 12/10/2024 $1,260.00 Executive Coaching & Mentoring - November 2024 Services
1/17/2025 Klarity Consulting, LLC 2024-018 1/10/2025 $1,320.00 Executive Coaching & Mentoring - December 2024 Services
2/28/2025 Klarity Consulting, LLC 2024-020 2/10/2025 $720.00 Executive Coaching & Mentoring - January 2025 Services
3/28/2025 Klarity Consulting, LLC 2024-023 3/10/2025 $3,720.00 Executive Coaching & Mentoring - February 2025 Services
2025-04-29
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Peggy Griffin
From:Peggy Griffin <griffin@compuserve.com>
Sent:Tuesday, April 29, 2025 2:40 PM
To:'City Council'; City Attorney's Office
Cc:'City Clerk'
Subject:2025-04-19 City Council Meeting ITEM 1 - City Manager Evaluation
Attachments:Itinerary for Sister City Trip-Bhubaneswa Nov 10-13 2024.pdf; PRR 25-81 CM Wu vacation days
Nov 2025.pdf; Map of Flights in India.pdf
PLEASE INCLUDE THIS EMAIL AND ALL ATTACHMENTS IN WRITTEN COMMUNICATIONS FOR THE ABOVE MEETING AGENDA ITEM.
Dear Mayor Chao, Vice Mayor Moore, Councilmembers and City AƩorney Floy,
I am wriƟng you due to my concern regarding our CuperƟno City Manager Pamela Wu’s apparent misappropriaƟon of public
funds and her behavior as the top staff member of our city.
The informaƟon obtained through a series of public records requests point to a possible larger issue regarding the use of pu blic
funds and her breaking the condiƟons of her contract.
BACKGROUND
1) April 13, 2023 a sudden City Council Special MeeƟng was called to approve the funding of City Manager Wu’s trip to the
Sister City Hsinchu, Taiwan to accompany Mayor Wei, both from Taiwan. This meeƟng was called on a Thursday night,
the night before they were to leave for Taiwan, Ɵckets already in hand. Without this approval, CM Wu’s trip would not
be covered by public funds.
a. NOTE: During the Council meeƟng there was an extensive discussion regarding the appropriateness of the City
Manager going on the trip at all so the awareness of the need for prior authorizaƟon was known to City Manager
Wu back in April of 2023.
b. Page 4 of 8 of the 2018 Sister City and Friendship City Policy 2018 stated:
2) Oct. 10, 2023, Consent Item 5 Updates to the Policies and Guidelines on Sister CiƟes etc. was pulled for discussion. Again
an extensive discussion ensued.
a. Page 8 of 8 under INTERNATIONAL DELEGATIONS-Travel Expenses
3) Nov. 6-15, 2024 City Manager Wu accompanied then Mayor Mohan on a lengthy vacaƟon using public funds.
a. NOTE1: No Council approval was obtained to go on this trip! No Council approval was obtained for any
expenses to be paid for this trip.
i. There was ample Ɵme to put the item on the agenda as indicated by her US Bank Card charge on 10 -1-
2023 for a VISA so plans were already underway.
b. NOTE2: CM Wu chose to take a side trip to Bangalore, India (NOT a sister city) but the hometown of Mayor
Mohan, staying 2 nights at the Ritz Carlton on the city’s dime!
4) City Manager Wu’s employment contract
2
a. SecƟon 1.3 Other AcƟviƟes – “shall not engage, without the express prior wriƩen consent of the City Council, in
any other business duƟes or pursuits whatsoever…”
b. SecƟon 6.6 Professional Development specifically talks about travel in the US, not internaƟonally.
5) Loss of work Ɵme and costs to our city
a. In 2023, CM Wu went on another Sister City trip to Taiwan, her hometown. Rather than take vacaƟon, she
charged all but one day as “work Ɵme”.
b. On this vacaƟon to India, CM Wu spent 5 work days traveling to and from India! She arrived in Bangalore just in
Ɵme to spend the weekend vacaƟoning in Bangalore at the Ritz Carlton, paid for by our tax dollars.
c. In both these cases, CuperƟno lost valuable work Ɵme from a very highly paid individual and it preserved her
vacaƟon Ɵme so the city incurred double costs!
6) Restaurant charges on CM Wu’s city US Bank Card – they look excessive and some look to be just a normal lunch not
associated with travel or seminars.
7) Blatantly absent from the February 26th, 2025 State of the City event.
a. This event was set in advance. It is THE big city event where other dignitaries from other ci Ɵes, CA legislature
and organizaƟons are present and yet CM Wu was not there!
b. This came across as a non-verbal statement of disapproval of our new Mayor Chao and our newly elected council
when the City Manager’s posiƟon, along with staff, is supposed to be neutral, working with whomever has been
elected.
8) Behavior at City Council meeƟngs – non-verbal body language showing disapproval of council acƟons
a. I’ve seen her storm off of the dais aŌer a council meeƟng.
b. I’ve seen her intenƟonally go hug some representaƟves of the now-minority council but this does not happen to
those opposing residents.
9) Poor leadership/seƫng an example – CM Wu’s expenditures and her behavior do not set a good example for our city
employees.
a. When the top employee spends extravagantly when others (both staff and residents) are asked to cut costs
sends a mixed signal and does not build trust.
b. When the top employee doesn’t show up for important events or spends work Ɵme traveling in order to arrive at
a vacaƟon locaƟon in Ɵme for the weekend, tells employees they can do the same!
c. The strongest leaders lead by example. Their acƟons are stronger than your words. CM Wu’s acƟons speak for
themselves.
Please look into this apparent misappropriaƟon of public funds . The residents of CuperƟno have had to take cuts in services and
increases in fees due to a “lack of funds” yet the cost of some of these services could have been covered by or helped cover all
these misappropriated funds!
As council members change and opƟons or prioriƟes change it is extremely important that our City Manager and staff remain
neutral and follow whatever direcƟon has been decided because they reflect the people who elected them into office. It also
builds trust and cooperaƟon.
Sincerely,
Peggy Griffin
REFERENCES
Reference1 - 2018 Sister City and Friendship City Policy
hƩps://cuperƟno.legistar.com/View.ashx?M=F&ID=12344589&GUID=2C4E53C6-34D8-4301-9F4A-8A0B081F5DF3&G=74359C04-
A5F0-4CB2-A97A-0032996BB90E
Reference2 - 2023 Sister City and Friendship City Policy
hƩps://records.cuperƟno.org/WebLink/DocView.aspx?id=1160518&dbid=0&repo=CityofCuperƟno&searchid=182d5a89-661d-
49ce-ba32-9c9163959c6e
Reference3 – City Manager Pamela Wu’s employment contract
3
hƩps://www.cuperƟno.gov/files/assets/city/v/1/your-city/documents/cc-resoluƟon-no-22090-2.pdf
Reference 4 - Public Records Request PRR #25-038 All costs for Sister & Friendship CiƟes expenses
hƩps://cityofcuperƟnoca.nextrequest.com/requests/25-38
Page 20 - shows 10-1-2024 cost for Visa
Page 29 – shows a 2 night stay at the Ritz Carlton, Bengaluru (NOT A SISTER CITY but is former Mayor Mohan’s hometown!)
Reference 5– Public Records Request PRR #25-053 All US Bank Card Statements for Pamela Wu
hƩps://cityofcuperƟnoca.nextrequest.com/requests/25-53
Note the many, many higher end restaurant charges. Several look like charges for her nice lunches while in Cuper Ɵno – again not
covered under her contract.
Reference 6 – Public Records Request PRR #25-054 Itemized invoices
hƩps://cityofcuperƟnoca.nextrequest.com/requests/25-54
Reference 7 – AƩached PDF-IƟnerary for Sister City Trip-Bhubaneswa Nov 10-13 2024.pdf
Reference 8 – AƩached PDF-PRR #25-81 VacaƟon days taken in November 2024
No vacaƟon days were taken during the sister city trip November 6-14, 2024.
Reference 9 – AƩached PDF-Map of Flights in India
The sister city trip to India went out of their way to go to Bangalore.
2024-09-04
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Peggy Griffin
From:Peggy Griffin <griffin@compuserve.com>
Sent:Wednesday, September 4, 2024 12:00 PM
To:'City Council'; 'Kristina Alfaro'; 'City Clerk'
Subject:2024-09-04 City Council Meeting ITEM1 - City Manager Evaluation
Attachments:2024-06-18 CC Mtg-Supplemental Reports.pdf
Dear City Council, City Clerk and Director Alfaro,
REQUESTS:
1) Please include this email and the aƩachment as part of WriƩen CommunicaƟons for the 2024-09-04 City Council Closed
Session Item #1 City Manager Wu’s EvaluaƟon.
2) Please also include this in her personnel file.
City Manager Wu has not followed the powers and duƟes of her posiƟon as City Manager.
1) She has created new posiƟons without approval. (2.28.040 D)
2) She has not kept the City Council fully informed regarding the financial condi Ɵons/needs of the City. (2.28.040 G)
3) She has not followed City Council direcƟons. (2.28.040 O)
The following are details in support of the above statements.
2.28.040 D. “The power to appoint…does not include the power to create a new posi Ɵon…”
Yet, City Manager Wu created the Economic Development Manager posiƟon without approval!
2.28.040 G. “To keep the City Council at all Ɵmes fully advised as to the financial condiƟons and needs of the City;”
Not only has this not been done, but the informaƟon has been late, delayed and misleading.
The Council and public has been told we are in a financial crisis then she conƟnues to authorize non-essenƟal studies,
projects and consultants spending millions of dollars while cuƫng services to residents.
Contracts are “approved” by Council then 1-2 months later appended to add more!
She conƟnues to mislead the Council and the public.
o EXAMPLE: Recently, she described the 19400 Stevens Creek Blvd building as a “turnkey” building. This implies it
is ready to move in without alteraƟons which is no where near the truth! This is an old building requiring
significant seismic and other upgrades! She has already hired an architect yet the building has not been
purchased, nor should it.
o EXAMPLE: City Hall…the actual plans and needs have not been discussed in public. The “wisdom of the
purchase” must be discussed in public before any purchase is considered. The Council and the public has no idea
what has been decided behind closed doors spending money we don’t have.
o EXAMPLE: She stopped the progress of the Torre Ave Annex without no Ɵfying or discussing it with Council! It
just quietly was stopped and only disclosed when it came up in some other discussion.
2
o EXAMPLE: ConƟnually dodges direct quesƟons regarding the plans for City Hall, the EOC and the Sherriff’s Office.
These are key financial, health and safety issues that need to be addressed in public and the Council and the
public should have a right to know how our tax dollars will be spent on these items yet she conƟnually evades
and refuses to put them on the agenda to be discussed!
2.28.040 O. To make reports and iniƟate recommendaƟons as may be desirable or as requested by the City Council.
City Manager Reports conƟnue to be video ads for the city rather than actual informaƟve reports to Council. We used to
get CM reports that were of substance rather than fluff pieces produced by someone else.
When City Manager Wu spoke at a recent CuperƟno Rotary meeƟng, she presented informaƟon on the state of the city that one
would expect to be presented to Council and the public but never was presented to Council.
hƩps://vimeo.com/915834364?share=copy
In addiƟon, at that same CuperƟno Rotary meeƟng, City Manager Wu divulged Closed Session informaƟon of the name
of the CuperƟno business that was being audited in the CDTFA audit!
City Manager Wu has NOT followed Council direcƟon regarding what to do about City Hall renovaƟon. She was directed
to look into but NOT execute! She has yet to present the opƟons, the costs, what is and is not available to the Council.
This would allow them to make a decision yet she has decided for them! She is aƩempƟng to purchasing a building
without a “plan” approved by Council and discussed in public.
I have aƩached her 2024-06-18 City Council Supplemental Report for reference so you can go back and listen to the
meeƟngs for yourself to see what was directed.
Sincerely,
Peggy Griffin
CC 06-18-2024
#12
Consider acquisition of
property located at 19400
Stevens Creek Blvd
Supplemental Report
Lead Negotiator for a
Property Transaction
CITY COUNCIL MEETING
June 18, 2024
•Aging infrastructure,
seismic deficiencies,
inadequate space
•Subcommittee and
Council discussions
about this topic since
2022
•Cost of renovation
estimated at $27.5 M,
cost of a new City Hall
estimated at $80 M
Background
Prior Council Direction
•November 15, 2022: include a City Hall retrofit
project in the CIP
•February 21, 2023: suspend work on renovation plan
and explore options for a new City Hall
•October 17, 2023: pursue conceptual development
with financing strategies for new or renovated City
Hall; bring back examples of public private
partnership projects and pursue potential
partnerships
•Turnkey office space located at 19400
Stevens Creek Boulevard
•1.2-acre lot, 20,700 square feet of office
•Accessible location for the community
•Could serve as an interim City Hall while
potential partnership and funding options
are explored for current site
Key Elements and Opportunities
Authorize the City Manager to act as the
lead negotiator for purchase of the property
located at 19400 Stevens Creek Boulevard
Recommendation
Lead Negotiator for a
Property Transaction
2023-10-30
EMAIL
to
COUNCIL
1
Peggy Griffin
From:Griffin <griffin@compuserve.com>
Sent:Monday, October 30, 2023 3:32 PM
To:City Council
Cc:City Clerk
Subject:2023-10-30 City Council Meeting Agenda Item2- City Manager Performance Evaluation
Please include this email and any attachments as part of written communication for the above city council meeting agenda item.
Dear City Council,
I am including the comments I submitted in early July 2023 again since City Manager Wu’s performance evaluation was
“postponed” according to what the public was told was the result of the Closed Session.
In addition, I would like to point out that under the Cupertino Municipal Code section 2.28.040 Powers and Duties, City Manag er
Wu shall act under the direction and control of the City Council. In February, she was instructed to continue the work on the
City Hall Annex yet in October staff reported that this was stopped! This was done without City Council approval or knowledge!
Also, in February she was instructed to look into the feasibility of a new city hall but what resulted and was presented to Council
in October did not look anything like what was requested! No one mentioned housing on public land! Staff did not ask Counc il if
this sound be considered. It was another decision done behind closed doors without public or Council oversight!
City Manager Wu is making decisions that should be done in public with Council direction and public comment. The Housing and
Planning Commissions have been completely left out of any participation in the Housing Element input on policies and
procedures and their meetings have just about all been eliminated! Decisions have been made without public oversight or
input!
This is not how our city should be run. Video recordings of Parks and Rec meetings have been eliminated using cost as a reason
yet money is spent on meals and travel that far exceed the cost of video recordings. Priorities need to be adjusted!
Maybe it’s time for a change in management and improved oversight? Please do your job and fix this! It has gone in too long
and it’s not improving.
Sincerely,
Peggy Griffin
“
2.28.040 Powers and Duties.
The City Manager shall be the administrative head of the City government acting under the direction and control of the
City Council except as otherwise provided in this chapter.”
From: Peggy Griffin
Date: July 6, 2023 at 1:37:38 AM PDT
To: City Council <CityCouncil@cupertino.org>
Cc: City Clerk <CityClerk@cupertino.org>
Subject: 2023-07-06 City Council Meeting Agenda Item3 - City Manager Performance Evaluation
2
Dear City Council,
With regard to City Manager Wu’s evaluation, please consider addressing the following issues:
ISSUE #1: CUTTING PEOPLE OFF
Often during City Council meetings, City Manager Wu cuts people off, not allowing them to finish their statement or answer
questions that were asked of them, not the City Manager. This has happened to her staff, the City Attorney, and to the mino rity
City Council Members. It does not happen to the 3 majority City Council members.
From the recently passed “City of Cupertino City Council Procedures Manual”, Section 6 “Relationship with City Staff”, Section
6.5 Decorum. “All Council members and City staff shall treat each other with dignity, courtesy, and respect” This applies to the
City Manager-City Council relationships and City Manager-Staff relationships.
ISSUE #2: NOT ANSWERING QUESTIONS IN COUNCIL MEETINGS
VERY OFTEN, when a City Council Member asks a question she refuses to answer it and responds that it will be taken offline and
answered in a memo. Sometimes, questions are brought up during public comment on an item and Council Members note them
and repeat the question during their comment time. These questions need to be addressed in public and often the answers can
impact the vote.
This comes across as arrogant and condescending, as if the information is not important enough to be addressed in public.
There is no follow up. The public never hears the answers to these questions and the vote is forced without an answer. When a
Council Member asks a question, the City Manager should answer the question or find someone who can!
ISSUE #3: KNOWINGLY ALLOWING MUNICIPAL CODE VIOLATIONS BY STAFF TO CONTINUE
Since December 2022, the City has been in violation of California state and Cupertino municipal code regarding the timely
reporting of monthly financial information. During the February 21, 2023 City Council meeting, Agenda Item #5 Accounts
Payable for Nov. 22, 2022 the frequency of the Accounts Payable reports coming to council was brought up. City Manager Wu
insisted that these reports would adhere to the requirements specified in Resolution 5939, Section D Number 3. She repeatedly
said this on February 21, 2023!
The linked image cannot
be displayed.
The file may
have been
mov ed,
renamed, or
deleted. Verify that the link points to the correct file and location.
Even in June, these reports were presented late. The City Manager has been aware of this the whole time yet it was not
corrected for over 6 months!
Please address these 3 issues when discussing City Manager Wu’s review. Hopefully, by identifying and discussing these issues
they can be resolved which would help improve communication and relationships.
Sincerely,
Peggy Griffin
2023-07-06
EMAIL
to
COUNCIL
1
Peggy Griffin
From:Peggy Griffin <griffin@compuserve.com>
Sent:Thursday, July 6, 2023 1:38 AM
To:'City Council'
Cc:'City Clerk'
Subject:2023-07-06 City Council Meeting Agenda Item3 - City Manager Performance Evaluation
Dear City Council,
With regard to City Manager Wu’s evaluaƟon, please consider addressing the following issues:
ISSUE #1: CUTTING PEOPLE OFF
OŌen during City Council meeƟngs, City Manager Wu cuts people off, not allowing them to finish their statement or answer
quesƟons that were asked of them, not the City Manager. This has happened to her staff, the City AƩorney, and to the minority
City Council Members. It does not happen to the 3 majority City Council members.
From the recently passed “City of Cupertino City Council Procedures Manual”, Section 6 “Relationship with City Staff”, Section
6.5 Decorum. “All Council members and City staff shall treat each other with dignity, courtesy, and respect.” This applies to the
City Manager-City Council relationships and City Manager-Staff relationships.
ISSUE #2: NOT ANSWERING QUESTIONS IN COUNCIL MEETINGS
VERY OFTEN, when a City Council Member asks a question she refuses to answer it and responds that it will be taken offline and
answered in a memo. Sometimes, questions are brought up during public comment on an item and Council Members note them
and repeat the question during their comment time. These questions need to be addressed in public and often the answers can
impact the vote.
This comes across as arrogant and condescending, as if the information is not important enough to be addressed in public.
There is no follow up. The public never hears the answers to these questions and the vote is forced without an answer. When a
Council Member asks a question, the City Manager should answer the question or find someone who can!
ISSUE #3: KNOWINGLY ALLOWING MUNICIPAL CODE VIOLATIONS BY STAFF TO CONTINUE
Since December 2022, the City has been in violaƟon of California state and CuperƟno municipal code regarding the Ɵmely
reporƟng of monthly financial informaƟon. During the February 21, 2023 City Council meeƟng, Agenda Item #5 Accounts
Payable for Nov. 22, 2022 the frequency of the Accounts Payable reports coming to council was brought up. City Manager Wu
insisted that these reports would adhere to the requirements specified in ResoluƟon 5939, SecƟon D Number 3. She repeatedly
said this on February 21, 2023!
2
Even in June, these reports were presented late. The City Manager has been aware of this the whole Ɵme yet it was not
corrected for over 6 months!
Please address these 3 issues when discussing City Manager Wu’s review. Hopefully, by idenƟfying and discussing these issues
they can be resolved which would help improve communicaƟon and relaƟonships.
Sincerely,
Peggy Griffin
2023-05-12
EMAIL
to
DA Rosen
1
Peggy Griffin
From:Peggy Griffin <griffin@compuserve.com>
Sent:Friday, May 12, 2023 2:04 PM
To:jrosen@dao.sccgov.org
Subject:Cupertino Treasurer Violations of Laws and apparent concealment of negative ACFR
Attachments:FILE_3818-Crowe Horwath March 1, 2018.pdf; FILE_8769-Maze and Assoc June 30, 2016 Interim
Accounting.pdf
May 12, 2023
Dear District AƩorney Rosen,
I’m concerned about the selecƟve enforcement of our CuperƟno Municipal Code to retaliate against certain Councilmembers
who have tried to bring our city into compliance with state and municipal code.
Last year, the CuperƟno Audit CommiƩee chaired by Councilmembers Moore and former Councilmember Paul worked to get our
city into compliance with these laws. Since their removal from this commiƩee the city Treasurer has fallen out of compliance
despite their response to the Santa Clara County Civil Grand Jury (CGJ) report “Show Me the Money”.
Link to the CGJ’s report “Show Me the Money”
hƩps://www.scscourt.org/court_divisions/civil/cgj/2022/Show%20Me%20the%20Money%20-
%20Financial%20Transparency%20Needed.pdf
Link to City of CuperƟno’s Response to the CGJ’s report “Show Me the Money”
hƩps://www.scscourt.org/court_divisions/civil/cgj/2023/Show%20Me%20the%20Money-City%20of%20CuperƟno.pdf
I’d like to bring these violaƟons listed below to your aƩenƟon.
I-ViolaƟon of Municipal Code SecƟon 2.24.030 Monthly Reports and California Government Code SecƟon 41004.
2
In the May 16, 2023 CuperƟno City Council Agenda, it includes the March 2023 Monthly Treasurer’s Report (Agenda Item #18)
which is late and violates both CuperƟno municipal code and California state law. This is not the first Ɵme since December 2022.
They are conƟnually late.
Link to May 16, 2023 CuperƟno City Council Agenda
hƩps://cuperƟno.legistar.com/View.ashx?M=A&ID=1053215&GUID=154456CA-6159-4A41-8BAE-5C85CDECF07E&G=74359C04-
A5F0-4CB2-A97A-0032996BB90E
II-ViolaƟon of California Government Code SecƟon 53607, CuperƟno Municipal Code 2.24.050 and the CuperƟno Investment
Policy
This is an excerpt from the top of the December 2022 Monthly Treasurer’s Investment Report. This is included in every Monthly
Treasurer’s Investment Report as background informaƟon.
Link to current and about to be updated CuperƟno Investment Policy
hƩps://cuperƟno.legistar.com/View.ashx?M=F&ID=11960748&GUID=32777BC5 -C26B-4777-AFD8-125ECE8D6F2D&G=74359C04-
A5F0-4CB2-A97A-0032996BB90E
The May 16, 2023 CuperƟno City Council Agenda Item #17 “Receive the Monthly Treasurer’s Investment Report for March and
April 2023”, the March 2023 Monthly Treasurer’s Investment Report is late.
3
III-Staff made new 2023 agenda rule forbidding the City Council from discussing agenda items labeled “INFORMATIONAL”
which include the Treasurer’s Reports and the negaƟve annual audit results in a public form.
The May 16, 2023 Agenda places the March and April Monthly Treasurer’s Investment Reports (Agenda Item #17) as
INFORMATIONAL items along with the most important annual audit report called the Annual Comprehensive Financial Report
(ACFR Agenda Item #21). Included in this ACFR is a management leƩer which has internal deficiencies listed.
The Management LeƩer is intended to provide the City Council with informaƟon regarding the organizaƟon to fulfil their
fiduciary duƟes. In order to do this, they need to discuss the findings in the leƩer.
Link to ACFR Management LeƩer
hƩps://cuperƟno.legistar.com/View.ashx?M=F&ID=11961088&GUID=5A2D8FA3-C09D-4224-BAE7-
5445D8CDF580&G=74359C04-A5F0-4CB2-A97A-0032996BB90E
INFORMATIONAL ITEMS are different from CONSENT IT EMS because INFORMATIONAL ITEMS cannot be pulled for discussion and
are NEVER even presented to the public. They just listed on the agenda. The City Council never voted to implement the
INFORMATIONAL Agenda category. This was purely a staff decision.
In light of the above violaƟons and concerns, I have 2 requests for your consideraƟon:
REQUEST1: Consider the referral received from City AƩorney Jensen in light the above violaƟons by the city itself and the efforts
of Councilmembers Moore and Paul to idenƟfy and bring the city into compliance.
REQUEST2: Please request a state auditor to audit the City of CuperƟno.
Thank you.
Sincerely,
Peggy Griffin
griffin@compuserve.com
P.S. I’ve aƩached 2 older audit documents that show a long history of audit issues.
- March 1, 2019 Crowe Horwath Report
- June 30, 2016 Maze and Associates Report
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CITY OF CUPERTINO
INTERIM ACCOUNTING ISSUES MEMO
JUNE 30, 2016
MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 1 of 20 In Business to Help our Clients Succeed!
Final Schedule
We will provide the City the final closing checklist via e-mail during the week of July 18, 2016. We will need
the final closing checklist items available for us on Monday, November 7, 2016. Please reserve a room for
our staff for the period Monday, November 21, 2016 – Friday, December 9, 2016.
We have provided the audit confirmation drafts to the City during the week of July 18, 2016. Please mail the
original signed confirmations as soon as they are ready to our Maze office in Pleasant Hill, along with a check
payable to the State Controller in the amount of $100. Please do not mail them directly; we will do that
after we review them.
The following is a timeline of proposed dates for the City’s audit, please let us know if you have any concerns:
• November 7, 2016 – Latest date that City staff will have City’s financial reports emailed to Chris Hunt
(chrish@mazeassociates.com) and cc Mark/Grace/Zach. Please coordinate with Chris Hunt directly
for the types of reports required.
• Week of November 14, 2016 – Maze will e-mail the analytical review questions to City.
• November 21 – December 9, 2016 – Final Audit fieldwork days. All items requested in the Final
closing checklist should be ready on the first date of the fieldwork.
• December 9, 2016 – Maze will provide the draft of the following reports for City’s review:
o CAFR
o Investment AUP Report
• December 16, 2016 – City to provide the draft changes, MD&A and Statistics for Maze review
• December 19, 2016 – Maze to provide the 2nd round draft of CAFR for City to review
• December 22, 2016 – City to provide the final draft changes to Maze and provide the Transmittal
letter
• December 27, 2016 – Maze to provide the revised completed version of CAFR for City for a final
proof
• December 27, 2016 – City provide signed Management Representation Letters (MRL) for all reports
• December 30, 2016 – Maze issues the finalized reports and provides bounded copies to City.
• January, 2016 (To be confirmed) – Maze to present to the Audit Committee
We plan to start Single Audit sometime in December 2016. Here is our proposed timeline:
• November 21, 2016 – Finalized SEFA (Scheduled of Expenditures for Federal Awards) for Single
Audit e-mailed to Maze.
• January 2016 – Single Audit field work starts for one week.
CITY OF CUPERTINO
INTERIM ACCOUNTING ISSUES MEMO
JUNE 30, 2016
MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 2 of 20 In Business to Help our Clients Succeed!
INTERIM CONTROL TESTING RESULTS
Our interim audit results did not note any material weaknesses in the City’s internal control thus far. However
we do have issues that we would like to bring to the City’s attention as documented below:
1. ISSUE (Title): Super-User Rights
Criteria – A system super-user is an individual who has full access over the City’s financial system
including all modules and all functions. This type of access should be limited to as few people as
possible. If possible, super-user rights should be removed from Finance Department staff.
Condition – During our interim audit, we noted that the Accountant is a super-user in the City’s
financial system.
Cause – The City is working to implement sufficient controls subsequent to converting to New World
Systems effect January 1, 2015.
Effect – When an accounting staff has super-user rights, there is an increased risk that unauthorized
adjustments or transactions could be processed without proper review and approval. As a result, there
is an increased risk that financial statements material misstatements and/or loss of financial asset may
not be detected and correctly timely.
Recommendation – The City should review the necessity of granting any employee the super-user
rights to the financial system. For any module within the financial system that these employees do not
need to have editing rights, their access should be limited to read-only.
2. ISSUE (Title): Review of the Payroll Register
Criteria – To ensure proper and accurate processing of City payroll, payroll check registers should be
reviewed, approved and signed off by a designated individual who is not directly involved with
payroll processing.
Condition – During our interim audit, we noted that the payroll registers are reviewed; however there
does not appear to be any indication that a review of the payroll register took place.
Cause – The Finance Manager did not sign off on the payroll register to document that the payroll
register was reviewed and approved.
Effect – Reviewing payroll registers is an essential internal control to ensure all employees are being
paid the appropriate and approved amount. Without a proper review, the City is subject to an
increased risk of error or unauthorized payroll.
Recommendation – We recommend the City ensures that an employee review all payroll registers
timely and document their review on the face of payroll register.
CITY OF CUPERTINO
INTERIM ACCOUNTING ISSUES MEMO
JUNE 30, 2016
MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 3 of 20 In Business to Help our Clients Succeed!
3. ISSUE (Title): Controls over Cash Receipts
Criteria – Proper segregation of duties and sufficient monitoring procedures over the cash
receipt process are essential to the City’s internal control. Authorization, recording, custody
and comparison responsibilities should be segregated between separate employees. In
addition, appropriate personnel should be reconciling cash receipts to the general ledger on a
monthly basis. Coinciding with the preparation of the reconciliation, the City should also be
reviewing aging reports and delinquent receivables reports to determine the reasonableness
over collectability of its account receivable balances.
Condition – During our interim audit, we ascertained that the City’s Account Clerk is
responsible for opening daily mail, performing daily reconciliations, as well as performing
daily/weekly deposits to the bank. Per conversation with Cheuk Law, Senior Accountant, it
appears that the City is not performing monthly/quarterly cash receipt reconciliations to the
general ledger. In addition, the City is not currently reviewing the accounts receivable aging
report.
Cause – It appears the City currently does not have sufficient resources available to implement
sufficient segregation of duties and effective monitoring. This is caused by increased staff
turnover in recent years as well as the City’s election to convert to a new general ledger
system (New World System).
Effect – Because the Account Clerk has access to customer database, is responsible for receipt
collections, performing daily reconciliations and goes to the bank to make bank deposits, the
Account Clerk currently is responsible for the recording, custody and comparisons related to
the City’s cash receipt process. As a result, there appears to be an increased risk of potential
misstatement and/or fraud. In addition, the lack of monitoring (monthly reconciliations)
increases the risk for potential misstatement and/or fraud being uncorrected in a timely manner
and even undetected.
Recommendation – We recommend that the City reviews the personnel involved in the cash
receipt process and limits access so that no single employee has custody, records cash receipts,
can make adjustments; and make bank deposits. In addition, we also recommend the City
begin performing monthly reconciliations of its cash receipts and accounts receivable balance
on a monthly basis. As part of this review process, the City should also review an accounts
receivable aging report and delinquent receivables report to determine the likelihood and
reasonableness over the collectability of the balance. Bank deposit should be made by another
employee who does not perform cash receipts detail or can make adjustments to cash receipts
or accounts receivable.
CITY OF CUPERTINO
INTERIM ACCOUNTING ISSUES MEMO
JUNE 30, 2016
MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 4 of 20 In Business to Help our Clients Succeed!
4. ISSUE (Title): Compliance with Government Code 53646 and Investment Policy
Criteria- California Government Code 53646 section 1(b) states “The treasurer or chief fiscal officer
may render a quarterly report to the chief executive officer, the internal auditor, and the legislative
body of the local agency. The quarterly report shall be so submitted within 30 days following the end
of the quarter covered by the report. In addition, in the City’s Investment Policy section “Performance
Evaluation”, the City requires Investment performance statistics and activity reports are generated
on a quarterly basis for presentation to the oversight (audit) committee, City Manager and City
Council. Additionally, when preparing the quarterly Treasurer’s Report the City should ensure all
market values are in agreement with the month-end account statements.
Condition – During our interim audit, we selected the March 2016 Treasurer’s Report for testing
against the City’s Investment Policy in addition to California Government Code 53646. Per review of
the March 2016 Treasurer’s Report and the City Council minutes located on the City’s website, it
appears the City has not submitted the March 2016 Treasurer’s Report to City Council as of 7.13.16.
In addition, we noted the March 2016 Treasurer’s Report balance for the Bond Lease Payment
Account and Bond Reserve Account did not agree with the March 2016 BNY Statement by a total of
$1,051.
Cause – The City, while striving to be in full compliance with all California Government Code and
Investment Policy provisions, was unaware of the specific provision in section 53646. The City
believed submitting to the “Audit Committee” was sufficient to fulfill all requirements; however the
California Government Code and Investment Policy explicitly state submission to City Council is
required.
Effect – The City is not in compliance with California Government Code 53646 or the adopted City
Investment Policy. In addition, the City could be presenting inaccurate statements to the Audit
Committee and Council without reconciling the amounts with the month end account statements.
Recommendation – We recommend the City submit all quarterly Treasurer Reports to City Council
within the 30 days following the end of the quarter covered by the report in order to ensure all
requirements outlined in the California Government Code 53646 and Investment Policy are fulfilled
appropriately. In addition, we recommend the City verify all market value amounts are in agreement
with the month-end account statements.
CITY OF CUPERTINO
INTERIM ACCOUNTING ISSUES MEMO
JUNE 30, 2016
MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 5 of 20 In Business to Help our Clients Succeed!
5. ISSUE (Title): Timely Processing of Bank Reconciliations
Criteria – Bank reconciliations are one of the most important internal controls a City can have, and
the bank reconciliation cannot be considered complete until it has been reviewed and approved. To be
an effective control, bank reconciliations and the associated review should be completed in their
entirety as soon as reasonably possible after each month-end, usually within thirty days of bank
statement month end.
Condition – During our interim audit, we noted that from July 2015 onward the City failed to perform
any bank reconciliations due to a failure in the City’s new accounting software reconciliation module
over the processing of cash receipts.
Cause – Due to the City transferring its general ledger to new accounting software, New World
System, the City has resulted in numerous tasks falling behind schedule as the conversion required
much of the staff to be busy with conversion to the new system. Furthermore, due to the switch to the
new accounting system there have been issues in regards to the receipts processing module within the
system in not properly recording individual entries, this continues to be an issue as of July 13, 2016.
Effect – Any errors, misstatements and/or unauthorized activities may not be identified or corrected in
a timely manner.
Recommendation – We recommend that the City follow procedures to ensure the timely preparation
of the bank reconciliations ensuring that dates and signatures are visible on the reconciliations. Even
though the New World System reconciliation module is not properly processing receipts, the City
should still perform monthly bank reconciliations for all accounts in a timely manner.
CITY OF CUPERTINO
INTERIM ACCOUNTING ISSUES MEMO
JUNE 30, 2016
MAZE & ASSOCIATES ACCOUNTANCY CORPORATION 6 of 20 In Business to Help our Clients Succeed!
6. ISSUE (Title): Journal Entry Timing
Criteria – Journal entries are an important transaction cycle that affects all aspects of accounting and
financial reporting. To maintain financial reporting accuracy it is prudent that journal entries should
be posted to the general ledger in a timely manner.
Condition – During our interim audit, we sampled forty journal entries and noted the following:
• There were two cases of the tested samples (journal entry number 2016-00000459 & 2016-
00001941) that were not posted in a timely manner. Although the two samples appear to have
been prepared and reviewed correctly, a significant amount of time (3 years in one case)
elapsed between the initiation of the entry by Public Works and the informing of the Finance
Department of the need for the journals. This delay presents an increased potential for
erroneous entries. Furthermore, four additional journal entries appear to have been posted
several months behind due to the Finance Department falling behind in certain accounting
areas.
• There was one case from our selected sample (journal entry number 2016-00000226) where
the entry appears to have been recorded in the wrong fiscal year.
Cause – The City has fallen behind in certain areas due to the hiring of new staff in certain key roles
and implementation of new accounting software in fiscal year 2015 that caused a backhaul of work.
Furthermore, it appears that there is a lack of communication between departments.
Effect – Failure to post journal entries in a timely manner could result in increasing the chances of
reporting inaccurate financial information.
Recommendation – We recommend that all journal entries be posted in a timely manner and there
should be an increase in interdepartmental communication.
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Single Audit – Calculating Expenditures of Federal Awards
The new Uniform Guidance (UG) is effective for the City’s fiscal year 2016 Single Audit, which means that in
addition to new administrative requirements, the new threshold triggering the need for a single audit is
expenditures of $750,000 or more during a fiscal year. The calculation of expenditures of federal awards for
the SEFA also changed slightly under the UG.
Below are excerpts from the UG related to determining expenditures of federal awards:
§200.502 - Basis for determining Federal awards expended.
(a) Determining Federal awards expended. The determination of when a Federal award is
expended must be based on when the activity related to the Federal award occurs. Generally,
the activity pertains to events that require the non-Federal entity to comply with Federal
statutes, regulations, and the terms and conditions of Federal awards, such as:
expenditure/expense transactions associated with awards including grants, cost-
reimbursement contracts under the FAR, compacts with Indian Tribes, cooperative
agreements, and direct appropriations; the disbursement of funds to subrecipients; the use of
loan proceeds under loan and loan guarantee programs; the receipt of property; the receipt of
surplus property; the receipt or use of program income; the distribution or use of food
commodities; the disbursement of amounts entitling the non-Federal entity to an interest
subsidy; and the period when insurance is in force.
(b) Loan and loan guarantees (loans). Since the Federal Government is at risk for loans until the
debt is repaid, the following guidelines must be used to calculate the value of Federal awards
expended under loan programs, except as noted in paragraphs (c) and (d) of this section:
(1) Value of new loans made or received during the audit period; plus
(2) Beginning of the audit period balance of loans from previous years for which the
Federal Government imposes continuing compliance requirements [emphasis
added]; plus
(3) Any interest subsidy, cash, or administrative cost allowance received.
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Single Audit – Calculating Expenditures of Federal Awards (Continued
(c) Loan and loan guarantees (loans) at IHEs. When loans are made to students of an IHE but the
IHE does not make the loans, then only the value of loans made during the audit period must
be considered Federal awards expended in that audit period. The balance of loans for previous
audit periods is not included as Federal awards expended because the lender accounts for the
prior balances.
(d) Prior loan and loan guarantees (loans). Loans, the proceeds of which were received and
expended in prior years, are not considered Federal awards expended under this part when the
Federal statutes, regulations, and the terms and conditions of Federal awards pertaining to
such loans impose no continuing compliance requirements other than to repay the loans.
(e) Endowment funds. The cumulative balance of Federal awards for endowment funds that are
federally restricted are considered Federal awards expended in each audit period in which the
funds are still restricted.
(f) Free rent. Free rent received by itself is not considered a Federal award expended under this
part. However, free rent received as part of a Federal award to carry out a Federal program
must be included in determining Federal awards expended and subject to audit under this part.
(g) Valuing non-cash assistance. Federal non-cash assistance, such as free rent, food
commodities, donated property, or donated surplus property, must be valued at fair market
value at the time of receipt or the assessed value provided by the Federal agency.
(h) Medicare. Medicare payments to a non-Federal entity for providing patient care services to
Medicare-eligible individuals are not considered Federal awards expended under this part.
(i) Medicaid. Medicaid payments to a subrecipient for providing patient care services to
Medicaid-eligible individuals are not considered Federal awards expended under this part
unless a state requires the funds to be treated as Federal awards expended because
reimbursement is on a cost-reimbursement basis.
(j) Certain loans provided by the National Credit Union Administration. For purposes of this
part, loans made from the National Credit Union Share Insurance Fund and the Central
Liquidity Facility that are funded by contributions from insured non-Federal entities are not
considered Federal awards expended.
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Single Audit – Calculating Expenditures of Federal Awards (Continued)
§200.63 - Loan.
Loan means a Federal loan or loan guarantee received or administered by a non-Federal entity, except
as used in the definition of §200.80 Program income.
(a) The term “direct loan” means a disbursement of funds by the Federal Government to a non-
Federal borrower under a contract that requires the repayment of such funds with or without
interest. The term includes the purchase of, or participation in, a loan made by another lender
and financing arrangements that defer payment for more than 90 days, including the sale of a
Federal Government asset on credit terms. The term does not include the acquisition of a
federally guaranteed loan in satisfaction of default claims or the price support loans of the
Commodity Credit Corporation.
(b) The term “direct loan obligation” means a binding agreement by a Federal awarding agency to
make a direct loan when specified conditions are fulfilled by the borrower.
(c) The term “loan guarantee” means any Federal Government guarantee, insurance, or other
pledge with respect to the payment of all or a part of the principal or interest on any debt
obligation of a non-Federal borrower to a non-Federal lender, but does not include the
insurance of deposits, shares, or other withdrawable accounts in financial institutions.
(d) The term “loan guarantee commitment” means a binding agreement by a Federal awarding
agency to make a loan guarantee when specified conditions are fulfilled by the borrower, the
lender, or any other party to the guarantee agreement.
§200.80 - Program income.
Program income means gross income earned by the non-Federal entity that is directly generated by a
supported activity or earned as a result of the Federal award during the period of performance except as
provided in §200.307 paragraph (f). (See §200.77 Period of performance.) Program income includes but is
not limited to income from fees for services performed, the use or rental or real or personal property
acquired under Federal awards, the sale of commodities or items fabricated under a Federal award, license
fees and royalties on patents and copyrights, and principal and interest on loans made with Federal award
funds. Interest earned on advances of Federal funds is not program income. Except as otherwise provided
in Federal statutes, regulations, or the terms and conditions of the Federal award, program income does
not include rebates, credits, discounts, and interest earned on any of them. See also §200.407 Prior written
approval (prior approval). See also 35 U.S.C. 200-212 “Disposition of Rights in Educational Awards”
applies to inventions made under Federal awards.
We understand that the City does not expect to spend federal awards of $750,000 or more during fiscal year
2016. However, the City should review the calculations/terms above to ensure that everything is correctly
presented on the City’s draft SEFA.
Should you need to review any of the UG definitions or sections, the link to the UG website is below:
http://www.ecfr.gov/cgi-bin/text-idx?node=2:1.1.2.2.1#se2.1.200_180
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GASB PRONOUNCEMENTS EFFECTIVE FOR FISCAL YEAR 2016
The following comment represents a new pronouncement taking affect in fiscal year 2016 that could have
reporting requirements for new transactions. We cite them here to keep you abreast of developments:
GASB 72 – Fair Value Measurement and Application
This Statement addresses accounting and financial reporting issues related to fair value measurements. The
definition of fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date. This Statement provides guidance
for determining a fair value measurement for financial reporting purposes. This Statement also provides
guidance for applying fair value to certain investments and disclosures related to all fair value measurements.
Fair Value Measurement
Fair value is described as an exit price. Fair value measurements assume a transaction takes place in a
government’s principal market, or a government’s most advantageous market in the absence of a principal
market. The fair value also should be measured assuming that general market participants would act in their
economic best interest. Fair value should not be adjusted for transaction costs.
To determine a fair value measurement, a government should consider the unit of account of the asset or
liability. The unit of account refers to the level at which an asset or a liability is aggregated or disaggregated
for measurement, recognition, or disclosure purposes as provided by the accounting standards. For example,
the unit of account for investments held in a brokerage account is each individual security, whereas the unit of
account for an investment in a mutual fund is each share in the mutual fund held by a government.
This Statement requires a government to use valuation techniques that are appropriate under the circumstances
and for which sufficient data are available to measure fair value. The techniques should be consistent with one
or more of the following approaches: the market approach, the cost approach, or the income approach. The
market approach uses prices and other relevant information generated by market transactions involving
identical or comparable assets, liabilities, or a group of assets and liabilities. The cost approach reflects the
amount that would be required to replace the present service capacity of an asset. The income approach
converts future amounts (such as cash flows or income and expenses) to a single current (discounted) amount.
Valuation techniques should be applied consistently, though a change may be appropriate in certain
circumstances. Valuation techniques maximize the use of relevant observable inputs and minimize the use of
unobservable inputs.
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GASB 72 – Fair Value Measurement and Application (Continued)
This Statement establishes a hierarchy of inputs to valuation techniques used to measure fair value. That
hierarchy has three levels:
• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2 inputs are inputs—other than quoted prices—included within Level 1 that are observable for
the asset or liability, either directly or indirectly.
• Level 3 inputs are unobservable inputs, such as management’s assumption of the default rate among
underlying mortgages of a mortgage-backed security.
A fair value measurement takes into account the highest and best use for a nonfinancial asset. A fair value
measurement of a liability assumes that the liability would be transferred to a market participant and not
settled with the counterparty. In the absence of a quoted price for the transfer of an identical or similar liability
and if another party holds an identical item as an asset, a government should be able to use the fair value of
that asset to measure the fair value of the liability.
This Statement requires additional analysis of fair value if the volume or level of activity for an asset or
liability has significantly decreased. It also requires identification of transactions that are not orderly. Quoted
prices provided by third parties are permitted, as long as a government determines that those quoted prices are
developed in accordance with the provisions of this Statement.
Fair Value Application
This Statement generally requires investments to be measured at fair value. An investment is defined as a
security or other asset that (a) a government holds primarily for the purpose of income or profit and (b) has a
present service capacity based solely on its ability to generate cash or to be sold to generate cash. Investments
not measured at fair value continue to include, for example, money market investments, 2a7-like external
investment pools, investments in life insurance contracts, common stock meeting the criteria for applying the
equity method, unallocated insurance contracts, and synthetic guaranteed investment contracts. A government
is permitted in certain circumstances to establish the fair value of an investment that does not have a readily
determinable fair value by using the net asset value per share (or its equivalent) of the investment.
This Statement requires measurement at acquisition value (an entry price) for donated capital assets, donated
works of art, historical treasures, and similar assets and capital assets received in a service concession
arrangement. These assets were previously required to be measured at fair value.
Fair Value Disclosures
This Statement requires disclosures to be made about fair value measurements, the level of fair value
hierarchy, and valuation techniques. Governments should organize these disclosures by type of asset or
liability reported at fair value. It also requires additional disclosures regarding investments in certain entities
that calculate net asset value per share (or its equivalent).
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GASB 76 - The Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments
The objective of this Statement is to identify, in the context of the current governmental financial reporting
environment, the hierarchy of generally accepted accounting principles (GAAP). The “GAAP hierarchy”
consists of the sources of accounting principles used to prepare financial statements of state and local
governmental entities in conformity with GAAP and the framework for selecting those principles. This
Statement reduces the GAAP hierarchy to two categories of authoritative GAAP and addresses the use of
authoritative and non-authoritative literature in the event that the accounting treatment for a transaction or
other event is not specified within a source of authoritative GAAP. This Statement supersedes Statement No.
55, The Hierarchy of Generally Accepted Accounting Principles for State and Local Governments.
This Statement supersedes Statement No. 55, The Hierarchy of Generally Accepted Accounting Principles for
State and Local Governments.
How the Changes in This Statement Improve Financial Reporting
The requirements in this Statement improve financial reporting by (1) raising the category of GASB
Implementation Guides in the GAAP hierarchy, thus providing the opportunity for broader public input on
implementation guidance; (2) emphasizing the importance of analogies to authoritative literature when the
accounting treatment for an event is not specified in authoritative GAAP; and (3) requiring the consideration
of consistency with the GASB Concepts Statements when evaluating accounting treatments specified in
nonauthoritative literature. As a result, governments will apply financial reporting guidance with less
variation, which will improve the usefulness of financial statement information for making decisions and
assessing accountability and enhance the comparability of financial statement information among
governments.
GASB 79 – Certain External Investment Pools and Pool Participants
The requirements of this Statement are effective for reporting periods beginning after June 15, 2015, except
for certain provisions on portfolio quality, custodial credit risk, and shadow pricing. Those provisions are
effective for reporting periods beginning after December 15, 2015.
This Statement addresses accounting and financial reporting for certain external investment pools and pool
participants. Specifically, it establishes criteria for an external investment pool to qualify for making the
election to measure all of its investments at amortized cost for financial reporting purposes. An external
investment pool qualifies for that reporting if it meets all of the applicable criteria established in this
Statement. The specific criteria address (1) how the external investment pool transacts with participants; (2)
requirements for portfolio maturity, quality, diversification, and liquidity; and (3) calculation and
requirements of a shadow price. Significant noncompliance prevents the external investment pool from
measuring all of its investments at amortized cost for financial reporting purposes. Professional judgment is
required to determine if instances of noncompliance with the criteria established by this Statement during the
reporting period, individually or in the aggregate, were significant.
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GASB 79 – Certain External Investment Pools and Pool Participants (Continued)
If an external investment pool does not meet the criteria established by this Statement, that pool should apply
the provisions in paragraph 16 of Statement No. 31, Accounting and Financial Reporting for Certain
Investments and for External Investment Pools, as amended. If an external investment pool meets the criteria
in this Statement and measures all of its investments at amortized cost, the pool’s participants also should
measure their investments in that external investment pool at amortized cost for financial reporting purposes.
If an external investment pool does not meet the criteria in this Statement, the pool’s participants should
measure their investments in that pool at fair value, as provided in paragraph 11 of Statement 31, as amended.
This Statement establishes additional note disclosure requirements for qualifying external investment pools
that measure all of their investments at amortized cost for financial reporting purposes and for governments
that participate in those pools. Those disclosures for both the qualifying external investment pools and their
participants include information about any limitations or restrictions on participant withdrawals.
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NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE
The following comment represents new pronouncements taking effect in the next few years. We have cited
them here to keep you informed of developments:
EFFECTIVE FISCAL YEAR 2016/17:
GASB 73 - Accounting and Financial Reporting for Pensions and Related Assets That Are Not within
the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB
Statements 67 and 68
This Statement establishes requirements for defined benefit pensions that are not within the scope of
Statement No. 68, Accounting and Financial Reporting for Pensions, as well as for the assets accumulated for
purposes of providing those pensions. In addition, it establishes requirements for defined contribution
pensions that are not within the scope of Statement 68. It also amends certain provisions of Statement No.
67, Financial Reporting for Pension Plans, and Statement 68 for pension plans and pensions that are within
their respective scopes.
The requirements of this Statement extend the approach to accounting and financial reporting established in
Statement 68 to all pensions, with modifications as necessary to reflect that for accounting and financial
reporting purposes, any assets accumulated for pensions that are provided through pension plans that are not
administered through trusts that meet the criteria specified in Statement 68 should not be considered pension
plan assets. It also requires that information similar to that required by Statement 68 be included in notes to
financial statements and required supplementary information by all similarly situated employers and
nonemployer contributing entities.
This Statement also clarifies the application of certain provisions of Statements 67 and 68 with regard to the
following issues:
1. Information that is required to be presented as notes to the 10-year schedules of required
supplementary information about investment-related factors that significantly affect trends in the
amounts reported
2. Accounting and financial reporting for separately financed specific liabilities of individual employers
and nonemployer contributing entities for defined benefit pensions
3. Timing of employer recognition of revenue for the support of nonemployer contributing entities not in
a special funding situation.
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GASB 74 – Financial Reporting for Post-employment Benefit Plans Other Than Pension Plans
The objective of this Statement is to improve the usefulness of information about postemployment benefits
other than pensions (other postemployment benefits or OPEB) included in the general purpose external
financial reports of state and local governmental OPEB plans for making decisions and assessing
accountability. This Statement results from a comprehensive review of the effectiveness of existing standards
of accounting and financial reporting for all postemployment benefits (pensions and OPEB) with regard to
providing decision-useful information, supporting assessments of accountability and interperiod equity, and
creating additional transparency.
This Statement replaces Statements No. 43, Financial Reporting for Postemployment Benefit Plans Other
Than Pension Plans, as amended, and No. 57, OPEB Measurements by Agent Employers and Agent Multiple-
Employer Plans. It also includes requirements for defined contribution OPEB plans that replace the
requirements for those OPEB plans in Statement No. 25, Financial Reporting for Defined Benefit Pension
Plans and Note Disclosures for Defined Contribution Plans, as amended, Statement 43, and Statement No.
50, Pension Disclosures.
Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions,
establishes new accounting and financial reporting requirements for governments whose employees are
provided with OPEB, as well as for certain nonemployer governments that have a legal obligation to provide
financial support for OPEB provided to the employees of other entities.
The scope of this Statement includes OPEB plans—defined benefit and defined contribution—administered
through trusts that meet the following criteria:
• Contributions from employers and nonemployer contributing entities to the OPEB plan and earnings
on those contributions are irrevocable.
• OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the benefit
terms.
• OPEB plan assets are legally protected from the creditors of employers, nonemployer contributing
entities, and the OPEB plan administrator. If the plan is a defined benefit OPEB plan, plan assets also
are legally protected from creditors of the plan members.
This Statement also includes requirements to address financial reporting for assets accumulated for purposes
of providing defined benefit OPEB through OPEB plans that are not administered through trusts that meet the
specified criteria.
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GASB 77 – Tax Abatement Disclosures
This Statement establishes financial reporting standards for tax abatement agreements entered into by state
and local governments. The disclosures required by this Statement encompass tax abatements resulting from
both (a) agreements that are entered into by the reporting government and (b) agreements that are entered into
by other governments and that reduce the reporting government’s tax revenues.
This Statement requires governments that enter into tax abatement agreements to disclose the following
information about the agreements:
• Brief descriptive information, such as the tax being abated, the authority under which tax abatements
are provided, eligibility criteria, the mechanism by which taxes are abated, provisions for recapturing
abated taxes, and the types of commitments made by tax abatement recipients
• The gross dollar amount of taxes abated during the period
• Commitments made by a government, other than to abate taxes, as part of a tax abatement agreement.
Governments should organize those disclosures by major tax abatement program and may disclose
information for individual tax abatement agreements within those programs.
Tax abatement agreements of other governments should be organized by the government that entered into the
tax abatement agreement and the specific tax being abated. Governments may disclose information for
individual tax abatement agreements of other governments within the specific tax being abated. For those tax
abatement agreements, a reporting government should disclose:
• The names of the governments that entered into the agreements
• The specific taxes being abated
• The gross dollar amount of taxes abated during the period.
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GASB 78 – Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans
The objective of this Statement is to address a practice issue regarding the scope and applicability of
Statement No. 68, Accounting and Financial Reporting for Pensions. This issue is associated with pensions
provided through certain multiple-employer defined benefit pension plans and to state or local governmental
employers whose employees are provided with such pensions.
Prior to the issuance of this Statement, the requirements of Statement 68 applied to the financial statements of
all state and local governmental employers whose employees are provided with pensions through pension
plans that are administered through trusts that meet the criteria in paragraph 4 of that Statement.
This Statement amends the scope and applicability of Statement 68 to exclude pensions provided to employees
of state or local governmental employers through a cost-sharing multiple-employer defined benefit pension
plan that (1) is not a state or local governmental pension plan, (2) is used to provide defined benefit pensions
both to employees of state or local governmental employers and to employees of employers that are not state
or local governmental employers, and (3) has no predominant state or local governmental employer (either
individually or collectively with other state or local governmental employers that provide pensions through the
pension plan). This Statement establishes requirements for recognition and measurement of pension expense,
expenditures, and liabilities; note disclosures; and required supplementary information for pensions that have
the characteristics described above.
GASB 80 – Blending Requirements for Certain Component Units—an amendment of GASB Statement
No. 14
The objective of this Statement is to improve financial reporting by clarifying the financial statement
presentation requirements for certain component units. This Statement amends the blending requirements
established in paragraph 53 of Statement No. 14, The Financial Reporting Entity, as amended.
This Statement amends the blending requirements for the financial statement presentation of component units
of all state and local governments. The additional criterion requires blending of a component unit incorporated
as a not-for-profit corporation in which the primary government is the sole corporate member. The additional
criterion does not apply to component units included in the financial reporting entity pursuant to the
provisions of Statement No. 39, Determining Whether Certain Organizations Are Component Units.
How the Changes in This Statement Improve Financial Reporting
The requirements of this Statement enhance the comparability of financial statements among governments.
Greater comparability improves the decision-usefulness of information reported in financial statements and
enhances its value for assessing government accountability.
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GASB 82 – Pension Issues—an amendment of GASB Statements No. 67, No. 68, and No. 73
The objective of this Statement is to address certain issues that have been raised with respect to Statements
No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and Financial Reporting for Pensions,
and No. 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the
Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68.
Specifically, this Statement addresses issues regarding (1) the presentation of payroll-related measures in
required supplementary information, (2) the selection of assumptions and the treatment of deviations from the
guidance in an Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of
payments made by employers to satisfy employee (plan member) contribution requirements.
Presentation of Payroll-Related Measures in Required Supplementary Information
Prior to the issuance of this Statement, Statements 67 and 68 required presentation of covered-employee
payroll, which is the payroll of employees that are provided with pensions through the pension plan, and ratios
that use that measure, in schedules of required supplementary information. This Statement amends Statements
67 and 68 to instead require the presentation of covered payroll, defined as the payroll on which contributions
to a pension plan are based, and ratios that use that measure.
Selection of Assumptions
This Statement clarifies that a deviation, as the term is used in Actuarial Standards of Practice issued by the
Actuarial Standards Board, from the guidance in an Actuarial Standard of Practice is not considered to be in
conformity with the requirements of Statement 67, Statement 68, or Statement 73 for the selection of
assumptions used in determining the total pension liability and related measures.
Classification of Employer-Paid Member Contributions
This Statement clarifies that payments that are made by an employer to satisfy contribution requirements that
are identified by the pension plan terms as plan member contribution requirements should be classified as plan
member contributions for purposes of Statement 67 and as employee contributions for purposes of Statement
68. It also requires that an employer’s expense and expenditures for those amounts be recognized in the period
for which the contribution is assessed and classified in the same manner as the employer classifies similar
compensation other than pensions (for example, as salaries and wages or as fringe benefits).
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EFFECTIVE FISCAL YEAR 2017/18:
GASB 75 – Accounting and Financial Reporting for Post-employment Benefits Other Than Pensions
The primary objective of this Statement is to improve accounting and financial reporting by state and local
governments for post-employment benefits other than pensions (other post-employment benefits or OPEB). It
also improves information provided by state and local governmental employers about financial support for
OPEB that is provided by other entities. This Statement results from a comprehensive review of the
effectiveness of existing standards of accounting and financial reporting for all post-employment benefits
(pensions and OPEB) with regard to providing decision-useful information, supporting assessments of
accountability and inter-period equity, and creating additional transparency.
This Statement replaces the requirements of Statements No. 45, Accounting and Financial Reporting by
Employers for Postemployment Benefits Other Than Pensions, as amended, and No. 57, OPEB Measurements
by Agent Employers and Agent Multiple-Employer Plans, for OPEB. Statement No. 74, Financial Reporting
for Postemployment Benefit Plans Other Than Pension Plans, establishes new accounting and financial
reporting requirements for OPEB plans.
The scope of this Statement addresses accounting and financial reporting for OPEB that is provided to the
employees of state and local governmental employers. This Statement establishes standards for recognizing
and measuring liabilities, deferred outflows of resources, deferred inflows of resources, and
expense/expenditures. For defined benefit OPEB, this Statement identifies the methods and assumptions that
are required to be used to project benefit payments, discount projected benefit payments to their actuarial
present value, and attribute that present value to periods of employee service. Note disclosure and required
supplementary information requirements about defined benefit OPEB also are addressed.
In addition, this Statement details the recognition and disclosure requirements for employers with payables to
defined benefit OPEB plans that are administered through trusts that meet the specified criteria and for
employers whose employees are provided with defined contribution OPEB. This Statement also addresses
certain circumstances in which a nonemployer entity provides financial support for OPEB of employees of
another entity.
In this Statement, distinctions are made regarding the particular requirements depending upon whether the
OPEB plans through which the benefits are provided are administered through trusts that meet the following
criteria:
• Contributions from employers and nonemployer contributing entities to the OPEB plan and earnings
on those contributions are irrevocable.
• OPEB plan assets are dedicated to providing OPEB to plan members in accordance with the benefit
terms.
• OPEB plan assets are legally protected from the creditors of employers, nonemployer contributing
entities, the OPEB plan administrator, and the plan members.
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GASB 81 – Irrevocable Split-Interest Agreements
The objective of this Statement is to improve accounting and financial reporting for irrevocable split-interest
agreements by providing recognition and measurement guidance for situations in which a government is a
beneficiary of the agreement.
Split-interest agreements are a type of giving agreement used by donors to provide resources to two or more
beneficiaries, including governments. Split-interest agreements can be created through trusts—or other legally
enforceable agreements with characteristics that are equivalent to split-interest agreements—in which a donor
transfers resources to an intermediary to hold and administer for the benefit of a government and at least one
other beneficiary. Examples of these types of agreements include charitable lead trusts, charitable remainder
trusts, and life-interests in real estate.
This Statement requires that a government that receives resources pursuant to an irrevocable split-interest
agreement recognize assets, liabilities, and deferred inflows of resources at the inception of the agreement.
Furthermore, this Statement requires that a government recognize assets representing its beneficial interests in
irrevocable split-interest agreements that are administered by a third party, if the government controls the
present service capacity of the beneficial interests. This Statement requires that a government recognize
revenue when the resources become applicable to the reporting period.
How the Changes in This Statement Improve Financial Reporting
This Statement enhances the comparability of financial statements by providing accounting and financial
reporting guidance for irrevocable split-interest agreements in which a government is a beneficiary. This
Statement also enhances the decision-usefulness of general purpose external financial reports, and their value
for assessing accountability, by more clearly identifying the resources that are available for the government to
carry out its mission.
8
Lauren Sapudar
From:Pournima Krish <krish.pournima@yahoo.com>
Sent:Thursday, June 5, 2025 9:25 PM
To:Public Comments; Liang Chao; Kitty Moore; Sheila Mohan; J.R. Fruen; R "Ray" Wang
Subject:Written Comment: Please Dismiss Pamela Wu
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
Honorable Mayor Chao, Vice-Mayor Moore, City Council Members Mohan, Fruen, and Wang, and
City Clerk:
Please dismiss Pamela Wu. She has been an ineffective City Manager. There are numerous
examples of incompetence during her tenure. There must also have been unethical or illegal
behavior, that the public is unaware of, for her to be placed on administrative leave. Residents need
to have confidence in their City Manager and Pamela Wu does not have the trust or respect of
Cupertino residents.
Please put this mess behind us. It appears that the City has come to a mutually acceptable
separation agreement with Ms. Wu. If that is the case then please execute the agreement, pay her
the agreed upon amount sum of money, and end this mess. Cupertino is functioning well with the
acting City Manager. The residents do not want any more time or money wasted on this matter.
If Ms. Wu refuses to accept a reasonable separation agreement then the City Council should
terminate her and she should not receive any severance pay.
If there have been financial improprieties then Cupertino should try to recover that money. Residents
deserve to not have public money spent improperly.
Ms. Wu is, of course, free to file a wrongful termination lawsuit against the city. If this lawsuit
proceeds to court then everything will be made public which would be wonderful since residents
appreciate transparency. IN THE EVENT OF A LAWSUIT PLEASE DO NOT SETTLE OUT OF
COURT! Residents deserve to know everything that transpired and that would come out in court
regardless of the outcome of any lawsuit. This would not be in Wu’s own self-interest since it would
mean that she would be unlikely to ever get another City Manager position in the future. It would also
show that Cupertino is not averse to acting in the best interest of residents even when it would be
easier to just capitulate.
Please be more careful in the selection of future city managers. Residents deserve better!
Sincerely,
Pournima Krish
Cupertino Resident