Exhibit CC 7-15-14 Item #4 Audit Committee PowerPoint
AUDIT COMMITTEE
REPORT ON ACTIVITIES
JULY 15, 2014
BY ENO SCHMIDT
AUDIT COMMITTEE -2014
Members:
Angela Chen, At Large Member
Mark Santoro, Council Member
Eno Schmidt, At Large Member
Rod Sinks, Council Member
Raymond Yin, At Large Member
City Staff Liaison:
Lisa Taitano, Finance Manager
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Audit Committee -Responsibilities
Review Annual Audit Report & Management Letter;
Recommend Appointment of Auditors;
Review Monthly Treasurer’s Report;
Recommend Budget Format; and
Review City Investment Policies & Internal Controls.
(Extracted from Cupertino, CA Municipal Code Chapter 2.88)
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Audit Committee –Highlights
1.Annual Audit Report
City’s Fiscal Year Ended June 30, 2013
Reviewed Maze & Associates in November 2013
Q&A with Mark Wong CPA and City Staff
Clean Opinion
Comprehensive Annual Financial Report (CAFR)
http://www.cupertino.org/index.aspx?page=176
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Audit Committee –Highlights
2.New Investment Manager for City’s Post-
Employment Benefits (OPEB) Funds
Identified the Need for a New Investment Manager
Coordinated with City Staff and Public Agency
Retirement Services (PARS)
Interviewed A Number of Qualified Investment
Managers
Recommended U.S. Bank –Early 2014
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Audit Committee –Highlights
2.New Investment Manager for City’s Post-Employment
Benefits (OPEB) Funds -Continued
U.S.
Bank Investment Manager Qualifications
Ability to Formulate & Articulate an Investment Strategy and
Be Responsive to City’s Directions
Clear Appreciation for Risk-Return Target Consistent with
Fund’s Very Long Time Horizon
Flexibility in Offering Many Investment Choices
Responsive Realignment to Market Conditions
No Increase in Fees
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Audit Committee –Highlights
3.New Budget Summary Format
Identified the Need for Summary Format
Consultation and Collaboration with City Staff
New Summary Format To Be Implemented Mid-2014
Key Revenue and Expenditures
Year-to-date Percentage Measures
Possible Implementation of New Flow Diagrams
SankeyDiagrams
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Audit Committee –Q&A
Q&A
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