Audit 01-15-08City of Cupertino
Audit Committee
Regular Meeting
January 15, 2008
1. CALL TO ORDER
At 4:12 p.m., Carol Atwood called the meeting to order at Cupertino City Hall,
Conference Room A, 10300 Torre Avenue, Cupertino.
2. ROLL CALL
Community Members: Myoung Kang, Garrett Wade, Stanley Stemkoski
City Council: Orrin Mahoney, Gilbert Wong
City Staff: Carol Atwood, Dorothy Steenfott, David Woo
3. APPROVAL OF MINUTES
Stemkoski moved to approve the minutes of the regular meeting of October 11, 2007.
Wade seconded and motion passed unanimously with Wong abstaining.
4. ORAL COMMUNICATIONS
None
5. WRITTEN COMMUNICATIONS
None
6. NEW BUSINESS
A. Investment Report/Budget Update
Woo reviewed the November report and provided additional estimated reports
from January 2008.
Atwood also provided an update on the revenue picture. She indicated that retail
sales tax is very low, but the business-to-business is doing very well.
B. Review Auditor Contract
Woo reviewed the options available for an extension of the auditor contract.
Mark Wong of Maze and Associates indicated that new standards for risk
assessment require them to do more work throughout the interim and final review
process. Wong moved to approve atwo-year extension of the audit contract with
Maze and Associates. Kang seconded and motion passed unanimously.
January 15, 2008 Audit Committee Minutes Page 2
C. 2008 Meeting Schedule
Atwood noted the meeting schedule for 2008. Meetings are scheduled for April
10, July 10, and October 9 at 4:00 p.m.
D. Review of 2007 Financial Statements
Woo provided a brief report of the findings from the 2007 audit. Atwood reported
that the City ended fiscal year 2006-07 in a healthy financial position.
At 5:18 p.m. David Woo and Carol Atwood left the meeting in compliance with
the Statement of Auditing Standards recommendation that advisory bodies be
allowed to meet with the audit firm to review the findings without staff liaisons
present.
Mark Wong, Maze and Associates, responded to questions from the committee
regarding the City's audit and general auditing procedures including the potential
for accidental bond releases, segregation of duties, internal auditing, and audit
adjustments. The Audit Committee unanimously recommended that wire transfer
thresholds be implemented.
7. ADJOURNMENT
The meeting was adjourned at 5:36 p.m.
Dorothy Steen
Recording Secretary