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Audit 01-09-96 8!m Cupertino City of Cupertino CUPERTINO AUDIT COMMITfEE Regular Adjourned Meeting January 9, 1996 MINUTES 1. CALL TO ORDER Carol Atwood called the meeting to order at 10: 17 a.m. in Conference Room A of Cupertino City Hall, 10300 Torre Avenue. 2. ROLL CALL Members Present: Council members Lauralee Sorensen and John Bautista, Administrative Services Director Carol Atwood, City Manager Don Brown and Accountant Jesse Takahashi.. Members Absent: Community Representative Tom Hall. 4. APPROVAL OF MINUTES December 11,1995 Motion by Sorensen; Second by Brown; Approved by all present. 5. ORAL COMMUNICATIONS None 6. NEW BUSINESS a. Kuni Yoshioka, our audit partner at Grant Thornton, LLP, was present to review the 1994- 95 audit with the committee. Kuni addressed the audit as far as problems encountered (staff turnover, prior period adjustments, investment rollforwards) and strengths (new Cupertino staff, client documentation of adjustments, completeness of the draft CAFR). He felt that next years audit will be easier for all. Kuni then discussed the SAS#61 letter, an overview of the financial report, the single audit finding and the management letter comments. The committee asked questions as appropriate. Mr. Yoshioka will address the full City Council on 1/16196 to provide an overview of the audit and answer any additional questions. b. Carol Atwood reviewed two new senate bills that affect our investments, SB 564 and SB 866. She then discussed the revised investment policy and how it has been changed to conform with the new legislation. The committee suggested that the proposed investment policy be sent to the auditors for their information and input. Changes to the format of the monthly investment reports were also discussed for compliance with the new laws. January 9, 1996 Cupertino Audit Committee Page 2 c. Items for the next meeting: Budget Process - Calendar & Format Discussion Sales & Use Tax Audit Update ADJOURNMENT At 11:15am the committee concurred to adjourn to April 1, 1996 at 7:30am, Conference room A. ~~{ Carol Atwood Chair c: Iwinw onl\a edit \ruin ut<s. doc