Audit 07-23-98
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Cupertino
City of Cupertino
CUPERTINO AUDIT COMMITTEE
Regular Adjourned Meeting
July 23,1998
MINUTES
1.
CALL TO ORDER
Carol Atwood called the meeting to order at 8:09 a.m. in Conference Room A of Cupertino
City Hall, 10300 Torre Avenue.
2.
ROLLCALL
Council members: Sandy James
City Staff: Don Brown, Carol Atwood and Jennifer Chang
Community Representatives: Tom Hall, Emily Wagner
Absent: Wally Dean
3.
APPROVAL OF MINUTES - Motion by Tom Hall, Second by Don Brown, Approved by
all present.
4.
ORAL COMMUNICATIONS
None
5.
NEW BUSINESS
Workers Compensation Actuarial Audit - Carol reviewed the audit and pointed out that
the City's liability for workers compensation decreased approximately $100,000 over the
prior audit period. This decrease is due to 1) increased awareness of employees through
back prevention and safety classes, 2) new management at the service center and human
resources, and 3) several older claims that were settled and retired.
1997-98 Audit Schedule - Jennifer stated that Grant Thornton is scheduled to commence
final audit fieldwork on September 21st and will be at the city for approximately three
weeks. At that time city staff will have closed the books and prepared audit work papers
and draft financial statements.
Investment Review/GASB #31 - Carol reviewed the May investment report-highlighting
year to date financial trends. City sales tax, property tax and investment income is all
above budget expectations. The investment portfolio was reviewed along with a new
accounting rule that requires us to recognize the umealized gain/loss on our portfolio even
though the city intent is to hold the investments to maturity. This new requirement will
result in approximately $100,000 of mark- to-market income for the 1997-98 fiscal year.
Page 2
Finance/HR Computer Conversion - Carol gave an update on the computer conversion,
which will continue through June 1999.
Other - Don updated the committee on the governor's proposal to refund the VLF revenue.
This would amount to approximately $2 million dollars per year for the city. Discussion
followed.
ADJOURNMENT
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The meeting was adjourned at 9:17am to :!'¡UlU<UY 21, 1999 at 8:00am, Conference room A.
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Carol Atwood, Chair
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