Audit 02-27-20171. CALL TO ORDER
City of Cupertino
Audit Committee
Special Meeting
February 27, 2017
At 4 :03 p.m., Chainnan Eno Schmidt called the meeting to order at Conference Room A,
Cupertino City Hall, 10300 Torre Avenue, Cupertino CA 95014.
2. ROLLCALL
Committee Members Present: Chainnan Eno Schmidt, Mark Zavislak, Peter Shin,
Councilmember Steven Scharf and Councilmember Rod Sinks
City Staff Present: Kristina Alfaro, Lisa Taitano, and Mary Redwine
Absent: None
Guests: Kitty Moore
3. APPROVAL OF MINUTES
Committee member Sinks moved to approve the October 13, 2016 and special meeting of
November 9, 2016 minutes. Committee member Zavislak seconded and the motion
passed unanimously with condition of setting next two meeting dates of March 13
(special meeting) and April 17 , 2017 (regular meeting).
4. ORAL COMMUNICATIONS
Kitty Moore as a member of the public c01mnented that she was looking for the Minutes
of the Committee and could not find them on the City 's website since April of 2016 . City
staff agreed to investigate
5. NEW BUSINESS
A. Review of Standard Work Plan for Audit Committee in 2017 (last
version April 14, 2016)
Chairman Schmidt welcomed Councilmember Scharf to the Committee beginning with
this meeting. He then reviewed the latest Standard Work Plan for Audit Committee and
suggested moving, a) the Interim report on CAFR by independent auditor from October
meeting date to April meeting date and, b) CAFR from January meeting date to October
meeting date. Committee was in agreement with these adjustments.
B. Auditor RFP update and subcommittee recommendation
Taitano gave a review of the subcommittee's work and recommendation to engage a new
independent Certified Public Accounting Firm to provide audit and related services to
Cupertino . Zavislak motioned to accept the subcommittee's rec01mnendation and
Taitano 's staff report to procure the selection of Crowe Horwath LLP, as Cupertino
Auditor, to perform the independent auditor and related services beginning with the City
of Cupertino's fiscal year ending June 30 , 2017. Committee member Sinks seconded the
motion. After additional deliberation and discussion , the motion passed with four votes
and Shin abstaining.
Cupertino Audit Committee
C. Treasurer's Report for QE December 30, 2016
Taitano gave a presentation of the quarter ending December 30, 2016 Treasurer's
Investment report to the committee. She included the Wells Fargo asset listing that
reconciles with investment portfolio. Alfaro reminded the committee that monthly
reporting is also available through Cupertino's transparency portal, OpenGov.
Councilmember Sinks motioned to approve the report, Shin seconded, and the motion
passed unanimously.
D. Review of Progress on Uncompleted Action Items from Previous
Meetings
Chairman Schmidt discussed the schedule entitled "Progress on Uncompleted Action
Items from Previous Meetings" that captures action items requested by the Audit
Committee but not yet completed by City Staff or others. The Committee accepted City
Staff proposal to line out completed items, keep numeration, and underline or otherwise
highlight new changes and additions to the schedule as part of the Audit Co1mnittee's
meeting package. After a discussion Chainnan Schmidt and the Committee members
asked that David Brandt City Manager be invited to the next meeting in order to discuss
how each of the items on the list might appropriately be integrated into the work plan
established by the City Manager for the Finance and Accounting department.
6. ADJOURNMENT
Sinks motioned to adjourn with a special meeting of the Committee be scheduled on
March 13 th at 4:00pm for two hours, and the next regularly scheduled Committee meeting
in April be moved and set to April l ih at 4:00pm for two hours. Zavislak seconded with
a unanimous approval at 5:42pm.
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