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AC 07-25-2022Page 1 City of Cupertino Audit Committee Regular Meeting Minutes July 25, 2022 CALL TO ORDER At 2:30 p.m., Chair Moore called the regular meeting to order. This was a teleconference meeting with no physical location. ROLL CALL Committee Members Present: Chair Kitty Moore, Vice Chair Angela Chen, Mayor Darcy Paul, Committeemember Sophie Song, Committeemember Laura Hammer City Staff Present: Kristina Alfaro, Thomas Leung, Beth Viajar, Lizz Cook Absent: Guests: Mitch Barker (PARS), Angela Tang (PARS), Rick Rosenthal (US Bank), Ryan Maxey (US Bank), Carlos Oblites (Chandler) ORDERS OF THE DAY 1. APPROVAL OF MINUTES OF JUNE 27, 2022 Mayor Paul motioned for minutes to be changed to past tense. Vice Chair Chen seconded. The motion carried unanimously with Committeemember Song absent. 2. APPROVAL OF MINUTES OF JULY 1, 2022 Mayor Paul motioned for minutes to be changed to past tense. Committeemember Hammer seconded. The motion carried unanimously with Committeemember Song absent. ORAL COMMUNICATIONS NEW BUSINESS 3. Consider receiving OPEB & Pension Section 115 Trust Performance Report for Quarter Ending June 30, 2022 Barker and Tang provided an overview of the report. Rosenthal provided an update on the portfolio. No public comment. 4. Consider the Monthly Treasurer's Investment Report for June 2022 Leung provided an overview of the report. Oblites provided an update on investments. No public comment. Vice Chair Chen asked questions about fund balance in internal service funds. Leung noted that he would look into it. Vice Chair Chen motioned, and Commiteemember Hammer seconded. Motion carried unanimously by all members present. Page 2 5. Consider the Monthly Treasurer's Report for June 2022 Leung provided an overview of the report. No public comment. Chair Moore brought up her request for fund definitions to be included. Chair Moore asked questions on items in the AP register and noted that answers could be given when the AP register is brought to Council. Committeemember Song asked questions on transfers out. Leung and Director Alfaro provided the information. Vice Chair Chen motioned, and Committeemember Hammer seconded. Motion carried unanimously by all members present. 6. Consider an overview of the Budget Format Review Subcommittee's mission Leung provided an overview. No public comment. Chair Moore commented on how the Audit Committee had changed since its inception and questioned the Audit Committee's budget. Director Alfaro noted the difference between format and substance. Director Alfaro said that the Audit Committee budget question could be asked at the budget study sessions and over email to staff. Chair Moore noted her previous questions on special projects/carryovers and how there was not enough time to look at the budget. Committeemember Song and Vice Chair Chen made comments. Vice Chair Chen asked where she could find the unfunded needs for projects. Leung noted that it could be found in the capital projects budget. Director Alfaro confirmed that we have been able to fund all department requests, so the only unfunded projects were capital projects. Vice Chair Chen asked about unassigned fund balance. Leung noted it could be found in the financial schedules under General Fund Fund Balance. Mayor Paul noted that there needed to be a focus on transparency, clarity, and decisional authority. Chair Moore noted that they might want to take some of the questions on this item and put them into the work plan or clarify what they want to review. 7. Consider the Audit Committee 2022 Schedule and Work Plan Leung shared the workplan. No public comment. Chair Moore noted that there were questions about fund transfers, grants, General Fund fund balance, unassigned and assigned fund balances, reserves for encumbrances, Non-Departmental, special projects, and special revenue funds. She would like to hear more information on these topics. Chair Moore asked if the budget format topic could be added to the September meeting as a repeat and if time amounts could be included on the agenda. Chair Moore and Committeemember Hammer requested a discussion on the structure for reviewing the budget and how the review is conducted in October or November. OLD BUSINESS STAFF AND COMMITTEE REPORTS FUTURE AGENDA SETTING ADJOURNMENT The meeting adjourned at 4:57 p.m. Page 3 Recording Secretary: Janet Liang, Administrative Assistant