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AC 11-28-2022Page 1 City of Cupertino Audit Committee Regular Meeting Minutes November 28, 2022 CALL TO ORDER At 4:00 p.m., Chair Moore called the regular meeting to order. This was a teleconference meeting with no physical location. ROLL CALL Committee Members Present: Chair Kitty Moore, Vice Chair Angela Chen, Mayor Darcy Paul, Committeemember Laura Hammer, Committeemember Sophie Song City Staff Present: Kristina Alfaro, Thomas Leung, Pamela Wu, Matt Morley, Susan Michael Absent: Guests: Carlos Oblites (Chandler), Colleen Rozillis (Moss Adams) ORDERS OF THE DAY 1. APPROVAL OF MINUTES OF OCTOBER 24, 2022 Mayor Paul motioned, and Committeemember Hammer seconded. The motion carried unanimously. POSTPONEMENTS ORAL COMMUNICATIONS OLD BUSINESS NEW BUSINESS 2. Consider the Internal Audit Status Report Rozillis provided an overview of the report. No public comment. Vice Chair Chen asked if Moss Adam would turn over the monitoring of the Fraud Waste and Abuse (FWA) hotline to City staff or if they were working with City staff to monitor the hotline. Rozillis confirmed that they were under contract. Many cities, when first establishing the hotline, like to have an independent third party doing the review to build trust. After a certain amount of time, they may hand it over depending on the city’s capacity and interest. Chair Moore requested that the FWA website page be easier to find. Chair Moore asked about the purchasing policy. Alfaro noted that the purchasing policy has thresholds for contract approval, including when they go to Council. Any changes to areas that Council already has authority over will be brought back to Council for approval. Rozillis agreed with Alfaro. Chair Moore noted that City of Los Altos’ purchasing policy is 46 pages long, but Cupertino’s is very brief. Mayor Paul inquired about the two FWA complaints. Rozillis noted that two of the reports were from 2018 and 2019 and discussed them Page 2 with the City Manager and City Attorney and closed them as both issues were covered publicly and by Council. The other issue was an employment issue, and all reports were anonymous. Mayor Paul asked what the request list for the library construction audit consisted of. Rozillis noted that they were looking at the documentation of change orders, email documentation, contract documents, and invoices. Mayor Paul asked if they could get a list of the policies being reviewed by the internal auditors. Rozillis noted that a prioritized list of policies was provided at the May meeting. Committeemember Hammer noted that a little more information in the updates would be helpful. Rozillis noted that they would provide more context around how many policies they reviewed and the progress the city has made. Rozillis added that as they were early in the process, they did not have a lot of detail to share. Chair Moore noted that she would like to see the eight-policy items in their current form. Mayor Paul noted that Chair Moore could request staff to create physical binders that could be shared with the committee members that want to see them. City Manager Wu noted consideration of printing of the policies. 3. Consider the Monthly Treasurer's Investment Report for October 2022 Leung provided an overview of the report. Oblites provided an overview of the report. No public comment. Mayor Paul inquired if we are looking for fairly low numbers for unemployment. Oblites confirmed. Committeemember Hammer motioned, and Vice Chair Chen seconded. The motion carried unanimously. 4. Consider the Monthly Treasurer's Report for October 2022 Leung provided an overview of the report. No public comment. Chair Moore requested a copy of the contracts for Sonitrol Pacific West Security and Grassroots-Ecology and the location of the electric dryer and water heater in the City to be included in the staff report to Council. Mayor Paul motioned, and Vice Chair Chen seconded. The motion carried unanimously. 5. Consider the Structure of Potential Budget Review Leung provided an overview of the report. No public comment. Chair Moore requested to continue items #5 & 6 to the next regular January Audit Committee meeting. Mayor Paul motioned, and Committeemember Hammer seconded. The motion carried unanimously by all members present. 6. Consider the Audit Committee 2022 Schedule and Work Plan Chair Moore requested to continue items #5 & 6 to the next regular January Audit Committee meeting. Mayor Paul motioned, and Committeemember Hammer seconded. The motion carried unanimously by all members present. STAFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS Chair Moore noted her attendance at the Mayor’s Commissioners meeting. Next year, there will be a rotating basis of Audit Committee members at these meetings. Vice Chair Chen confirmed her availability for the January Mayor’s Commissioners meeting. Page 3 FUTURE AGENDA SETTING ADJOURNMENT The meeting adjourned at 6:30 p.m. Recording Secretary: Janet Liang, Administrative Assistant