Audit 03-13-20171. CALL TO ORDER
City of Cupertino
Audit Committee
Special Meeting
March 13, 2017
At 4:03 p.m., Chairman 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, Beth Viajar, Mary Redwine , and David
Brandt
Absent: None
Guests: Mark Wong, Partner, and Grace Zhang, Partner, of Maze and Associates. Kathy
Lai , Partner, of Crowe Horwath was on the conference call.
3. APPROVAL OF MINUTES
Committee Member Zavislak moved to approve the February 27, 2017, meeting minutes.
Committee Member Sinks seconded and the motion passed unanimously.
4. ORAL COMMUNICATIONS
5. NEW BUSINESS
A. Review and approve FY2015-16 draft CAFR and MOIC
Taitano provided an overview of the City's financial position and Mark Wong of Maze
and Associates provided specific accounting treatments contained in the City's FY2015-
16 Comprehensive Annual Financial Report. Wong then covered the four material
weaknesses in the Memorandum of Internal Controls (MOIC). After extensive dialogue
among committee members, City staff, and Wong and Zhang of Maze, Councilmember
Sinks moved to accept FY2015-16 CAFR and MOIC subject to City management
preparing and presenting a detailed plan to address and rectify the four material
weaknesses contained in the MOIC to City Council in the April City Council meeting.
Committee Member Shin seconded and the motion passed unanimously.
B. Approve Independent Analysis by Maze of internal controls over
investments (AUP)
Wong reviewed the Independent Accountant 's report on applying agreed-upon procedures
on the City of Cupertino Investment Policy. Councilmember Sinks moved to approve the
AUP. Committee Member Zavislak seconded and the motion passed unanimously.
Cupertino Audit Committee
C. Questions to external auditors listed in 10/13/2016 meeting minutes
Taitano prepared the list of questions from the committee with responses from the
October 13 , 2016, Audit Committee meeting. This was reviewed by Maze and
Associates. No action was required.
6. ADJOURNMENT
Councilmember Scharf motioned to adjourn with the next scheduled meeting on April 17
at 4:00pm. Councilmember Sinks seconded with a unanimous approval at 5:56pm.
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