Audit 01-30-95
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Cupertino
City of Cupertino
CUPERTINO AUDIT COMMITTEE
Special Meeting
January 30,1995
MINUTES
1.
CALL TO ORDER
Carol Atwood called the meeting to order at 7:38 a.m. in Conference Room A of Cupertino
City Hall, 10300 Torre Avenue.
2.
PLEDGE OF ALLEGIANCE
3.
ROLL CALL
Members Present: Council members Lauralee Sorensen and John Bautista; Community
Representative Tom Hall; Administrative Services Director Carol Atwood; and City
Manager Don Brown. Sharline Jackson-Ringgold served as recording secretary.
5.
ORAL COMMUNICATIONS
None.
6.
NEW BUSINESS
It was decided that the Audit Committee would consist of 5 members. Two of those
members would be Council Members, two would be city staff members, and one would
represent the business community. Carol Atwood, the director of administrative services,
was appointed as chair person, Tom Hall, CPA, was appointed vice-chair, and Don Brown,
city manager was appointed secretary. Terms of office will be I year.
Regularly scheduled meetings were set to be held quarterly, although the committee will
meet monthly for a few months to modify the Treasurer's Report format. Meetings will be
held the 4th Monday of each month at 7:30 a.m., conference room A.
The committee will perform the following functions:
.
Review of Annual Audit Report and Management Letter;
Appointment of Auditors;
Review of Annual Budget format;
Review of Annual Investment Policy and internal controls over investments;
Review of monthly Treasurer's Report including format changes.
.
.
.
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January 30, 1995
Cupertino Audit Committee
Page 2
Discussions:
It was agreed to use this committee for budget format proposals only, as
traditionally the entire city council has reviewed the budget via their annual study
sessions.
Carol Atwood explained how the Annual Audit Report now complies with
Government Finance Officers Association (GFOA) standards and proceeded to
review the annual report by fund and subject. John Bautista discussed readability
and the need to tie the documents together (i.e., budget, treasurer's report, and
financial report). Tom Hall asked for clarification of deferred compensation and
how it is held by the city. Don Brown pointed out that it is an employee
contribution, but Public Employees Retirement System (PERS) is funded by the city
annually. John Bautista asked if any future bonds would be issued. Carol Atwood
and Don Brown said that none were planned at this time. Discussion followed
regarding the refinancing of the Blackberry Farm and Fremont Older.
Carol Atwood reviewed the auditor's management letter item by item and
said the city got a good report on internal controls. She explained that the auditors
had difficulty reconciling our general ledger with the tax reports to the IRS (941
form). The city is now reconciling by pay period.
Carol Atwood said she would return with some additional information on
comments brought up by John Bautista and Tom Hall. At the next meeting the
committee will review the Treasurer's Report format. Carol Atwood passed out
information to the committee on the mid-year budget review. She said the Request
For Proposal for new auditors will be reviewed and mailed out by end of February
and should be back in March. The committee will then recommend the appointment
of new auditors.
7.
ADJOURNMENT
At 8:58 a.m. the committee concurred to adjourn to February 27, 1995, in conference
room A.
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Acting Secretary
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