AC 7.22.24Page 1
City of Cupertino
Audit Committee Regular Meeting
DRAFT Minutes
July 22, 2024
CALL TO ORDER
At 4:04 p.m., Chair Schmidt called the regular meeting to order in the City of Cupertino Quinlan
Conference Room, 10185 North Stelling Road.
ROLL CALL
Committee Members Present: Chair Eno Schmidt, Mayor Sheila Mohan, Committee member
Angela Chen
City Staff Present: Kristina Alfaro, Janet Liang, Jonathan Orozco, Pamela Wu
Absent: Committee member Hanyan Wu, Councilmember Hung Wei
Guests: Ken Pun (The Pun Group), Sophia Kuo (The Pun Group), Chelsea Ritchie (Moss Adams),
Maria Stroth (Moss Adams), Colleen Rozillis (Moss Adams), Jennifer Meza (PARS), Dennis
Mullins (US Bank)
ORDERS OF THE DAY
1. APPROVE MINUTES OF REGULAR MEETING ON JUNE 24, 2024
Mayor Mohan motioned, Committee member Chen seconded. The motion passes with
Committee member Wu and Councilmember Wei absent.
POSTPONEMENTS
ORAL COMMUNICATIONS
OLD BUSINESS
NEW BUSINESS
2. Receive the Internal Audit and Fraud, Waste, and Abuse programs update
Rozillis provided an overview. Mayor Mohan asked what happens after the three reports that
went to HR. Rozilis noted that it could be issues related to employee compensation, employee–
manager, and employee-employee challenges. HR will determine how to respond to that.
Committee member Chen asked if they see a decline in reports. Rozil lis noted that it is pretty
steady. Mayor Mohan asked if most of these reports are internal or external. Rozillis noted there
are instances when the public will submit reports and most complaints are from city employees.
Rozilis noted that at least two of the four are internal.
No public comment.
3. Receive OPEB & Pension Section 115 Trust Performance Report for Quarter Ending June 30,
2024
Meza and Mullins provided an overview. Mullins noted that they wanted to relook at the custom
benchmark with the City. Chair Schmidt noted it would great to include in the report what would
trigger investing in commodities at the city level. Mullins noted that they will try to come with
recommendations to the benchmark to the October meeting.
No Public Comment.
4. Receive the Treasurer's Investment Report for the Quarter Ending June 30, 2024
Orozco provided an overview. Oblites provided an overview. Mayor Mohan asked about the
difference in the City’s Operating Checking account. Orozco noted that it is the same account
except now it would get an earning credit and depending on the balance it would decrease the
bank fees. Chair Schmidt asked if there is an amount limit on the FDIC that they will cover up
to. Orozco noted that he will follow up with Wells Fargo. Chair Schmidt asked if any cities are
making this type of trade-off. Oblites noted that City staff took a diversified approach which is
wise as most cities leave it in LAIF because it is politically convenient.
Committee member Chen asked for clarification about the liquidity ratio and if that is the base
of making decisions as to how much should go into investment and how much should stay
cash and cash equivalent. Orozco noted that there is a lot of factors in what we decide to hold on
to as cash and cash equivalents and how much we decide to invest and is constantly discussed
with Oblites.
No public comment.
5. Receive the proposed Audit Committee 2024 Schedule and Workplan
Orozco provided an overview.
No public comment.
STAFF AND COMMITTEE REPORTS
COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS
FUTURE AGENDA SETTING
ADJOURNMENT
The meeting adjourned at 5:26 p.m.
Recording Secretary:
Janet Liang, Management Analyst
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