Audit 01-19-2012 City of Cupertino
Audit Committee
Regular Meeting Minutes
January 19, 2012
1. CALL TO ORDER
At 4:05 p.m. David Woo called the meeting to order at Cupertino City Hall, 10300 Torre
Avenue, Conference Room A.
2. ROLL CALL
Community Members Present: Stanley Stemkoski, Garrett Wade
Council Members Present: Barry Chang
City Staff Present: Carol Atwood, David Woo
Absent: Rod Sinks (appointed January 17, 2012)
3. APPROVAL OF MINUTES
Community Member Stemkoski moved to approve the minutes of the regular meeting of
November 10, 2011. Councilmember Chang seconded and the motion passed
unanimously.
4. ORAL COMMUNICATIONS -NONE
5. WRITTEN COMMUNICATIONS -NONE
6. NEW BUSINESS
A. Treasurer's Investment and Budget Report
a. HighMark Presentation
Andrew Brown of HighMark discussed asset allocation, performance, and outlook for the
PARS retiree health trust thru the fourth quarter of 2011. He also reported on the mutual
fund returns against benchmarks and the resulting mutual fund lineup changes.
David Woo reported on the City's December 31, 2011 investments of City operational
funds and the City's General Fund revenue and expenditure results for the first six
months of the fiscal year.
B. Investment Policy
Woo presented the City's investment policy to the committee as part of its annual review.
Woo proposed no changes to the policy, which the committee accepted.
C. Independent Auditors
Carol Atwood reported that various City staff have experienced dissatisfaction with way
that the current audit firm, Macias Gini & O'Connell (MGO), has conducted their work
during the first two years of their contract, especially in comparison with the previous
firm, Maze & Associates. Committee members also expressed that their experience with
the current firm was also less satisfactory than with the previous firm.A committee
member commented that Maze was comparable to MGO in ratings during the most recent
auditor selection process, but in the interest of auditor rotation, MGO was chosen.
However now that two audits have been completed and reports issued from MGO,
City of Cupertino
Audit Committee
Regular Meeting Minutes
January 19, 2012
rotation has been accomplished. Atwood made a recommendation that the City go back to
Maze starting with the next audit. Chang motioned that the City go back to Maze&
Associates, Stemkoski seconded, and the Committee accepted the motion unanimously.
7. OLD BUSINESS -NONE
8. OTHER COMMITTEE UPDATES/REPORTS -NONE
9. ADJOURNMENT
The meeting was adjourned at 4:55 p.m.
v
David Woo
Finance Director