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Audit 11-10-2011 City of Cupertino Audit Committee Regular Meeting Minutes November 10, 2011 1. CALL TO ORDER At 4:07 p.m. David Woo called the meeting to order at Cupertino City Hall, 10300 Torre Avenue, Conference Room C. 2. ROLL CALL Community Members Present: Stanley Stemkoski Council Members Present: Mark Santoro., Barry Chang City Staff Present: David Woo, Carol Atwood(arrived 4:20) Absent: Myoung Kang, Garrett Wade 3. APPROVAL OF MINUTES Councilmember Santoro requested that the Treasurer's Investment and Budget Reports be reviewed by the Audit Committee prior to acceptance by the City Council. Community Member Stemkoski moved to approve the minutes of the regular meeting of August 17, 2011. Councilmember Chang seconded and the motion passed unanimously. 4. ORAL COMMUNICATIONS -NONE 5. WRITTEN COMMUNICATIONS -NONE 6. NEW BUSINESS A. 2010-11 Financial Reports Woo reported on financial highlights from the Comprehensive Annual Financial Report (CAFR) and the Development Impact Fee report. Macias Gini & Connell's Benjamin Lau reported on his audit firm's findings and recommendations, new accounting treatments, disclosures, and audit opinion regarding the CAFR, Redevelopment Agency report, Report to the City Council, Gann Appropriations Limit report, and Investment Policy compliance report. Santoro requested and received additional information on expenditure variances and pension obligations. Stemkoski asked for and received clarification on the information technology findings and the timetable for management actions. B. Treasurer's Investment and Budget Report Woo reviewed the OPEB trust report that was not accepted by the City Council at their most recent meeting. He indicated that he is working with the trust investment manager to come up with a report at the next Committee meeting that presents more understandable and useful information. The Committee provided input to city staff as to the format and information needed. 7. OLD BUSINESS -NONE S. OTHER COMMITTEE UPDATES/REPORTS-NONE City of Cupertino Audit Committee Regular Meeting Minutes November 10, 2011 9. ADJOURNMENT The meeting was adjourned at 5:26 p.m. David Woo Finance Director