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AC 02.18.25City of Cupertino Audit Committee Special Meeting Minutes February 18, 2025 CALL TO ORDER At 4:00 p.m., Chair Schmidt called the special meeting to order in the City of Cupertino Quinlan Conference Room, 10185 North Stelling Road. ROLL CALL Committee Members Present: Chair Eno Schmidt, Vice Mayor Kitty Moore, Councilmember Sheila Mohan City Staff Present: Janet Liang, Jonathan Orozco, Kristina Alfaro Absent: Committee member Hanyan Wu Guests: Steve Toler (Baker Tilly) ORDERS OF THE DAY 1. APPROVE MINUTES OF SPECIAL MEETING ON FEBRUARY 18, 2025 Councilmember Mohan motioned to approve the minutes with Chair Schmidt’s edit, Vice Mayor Moore seconded. The motion passes with Committee member Hanyan Wu absent. POSTPONEMENTS ORAL COMMUNICATIONS OLD BUSINESS NEW BUSINESS 2. Accept the Baker Tilly Budget Format Review update and forward to City Council for approval Toler provided an overview. Vice Mayor Moore inquired about how the chapters would be summarized and where would all the information go as Public Works has numerous programs and divisions. Toler noted that all the information will still be provided but how should the information be distributed as the general public won’t be able to see the big picture. Toler continued to say that the overview would be reorganized and the description of the department, the org structure, the personnel summary of the key priorities, and then revenue and expenditure appropriations by division or program would still be there. He added that it provides a streamline to the public to identify the key initiatives and help tell the story more concisely. Page 1 Page 2 Vice Mayor Moore noted that she wanted to be able to audit the budget units and the summation would make it harder. Alfaro provided an overview of the roles and responsibilities of the Audit Committee. The Audit Committee discussed the inclusion of the capital budget into the operating budget and what that would entail. Chair Schmidt asked in what other instances is the internal audit function included in the budget and regarding performance measures does it make more sense to place internal audit performance measures at the City Manager level. Orozco noted that it isn’t indicative of finance and how it operates and that it should stay in finance. Toler noted that they could bring the budget dollars into the City Council budget as that is where the reporting occurs. Peggy Griffin provided public comment. Vice Mayor Moore noted that she would like Audit Committee’s comments included when this report gets sent to City Council. Councilmember Mohan motioned to approve the motion with the addition of Audit Committee’s comments to the report. Below is Audit Committee comments: • City Council wants to pilot it for FY26-27 to see if this is something City Council likes or through the subcommittee that this is the format that they like • CIP – connected with the budget book (include graphs) • Maintaining detail availability as an appendix • Ensuring original budget (point-in-time) is easily accessible • Reviewing performance measures in alignment with strategic goals like economic development • Graphical presentation of numbers to support a narrative description • Hyperlink to policies within the budget book o Summarized policy – key point of what the policy does o Attachment to an agenda item for all policies included redline, new, or amended policies within the budget book that is provided to City Council with a staff report • Internal Audit functions and responsibilities to be considered into City Council budget The motion passes with Committee member Hanyan Wu absent. STAFF AND COMMITTEE REPORTS COMMITTEEMEMBER ATTENDANCE AT UPCOMING MEETINGS AND EVENTS Page 3 FUTURE AGENDA SETTING ADJOURNMENT The meeting adjourned at 6:04 p.m. Recording Secretary: Janet Liang, Management Analyst