November 21, 2024 Finance Subcommittee Agenda Page 1
CITY OF MILPITAS
FINANCE SUBCOMMITTEE
SPECIAL MEETING AGENDA
4:00 PM. – 5:00 P.M.
Thursday, November 21, 2024
1st Floor Committee Conference Room 455 E. Calaveras Blvd, Milpitas
1. Call to Order
2. Pledge of Allegiance
3. Roll Call
4. Approval of Agenda: November 21, 2024
5. Approval of Meeting Minutes: November 15, 2023
6. Public Forum
Members of the audience are invited to address the Subcommittee on any subject not on the agenda. Speakers must state their name (address is optional) for the record and limit their remarks to three minutes or less. For items not listed on the agenda, no response is required of City staff or the subcommittee. However, the Subcommittee may ask staff to place the item on a future meeting agenda.
7. Announcements
8. Business Items
i. Status of Financial Audit
ii. Investment Report
iii. Enterprise Resource Planning (ERP) deployment update iv. Financial Resiliency Model
9. City Staff Comments
10. Adjournment
November 21, 2024 Finance Subcommittee Agenda Page 2
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KNOW YOUR RIGHTS UNDER THE OPEN GOVERNMENT ORDINANCE
Government’s duty is to serve the public, reaching its decisions in full view of the public.
Commissions and other agencies of the City exist to conduct the people’s business. This ordinance assures that deliberations are conducted before the people and the City operations are open to the people’s review.
For more information on your rights under the Open Government Ordinance or to report a violation, contact the City Attorney’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas, CA 95035 e-mail: [email protected] / Phone: 408-586-3040 The Open Government Ordinance is codified in the Milpitas Municipal Code as Title I Chapter 310 and is available online at the City’s website www.milpitas.gov by selecting “I Want to . . . View “ link.
Materials related to an item on this agenda submitted to the Commission after initial distribution of the agenda packet are available for public inspection at the City Clerk’s office at Milpitas City Hall, 455 E. Calaveras Blvd., Milpitas and on the City website. Commission agendas and related materials can be
viewed online: http://www.milpitas.gov/our-government/commission/ (select meeting date)
APPLY TO SERVE ON A CITY COMMISSION
Commission application forms are available online at http://www.milpitas.gov or at Milpitas City Hall.
Contact the City Clerk’s office at 408-586-3003 for more information.
CITY OF MILPITAS
FINANCE SUBCOMMITTEE
November 18, 2024 Finance Subcommittee Meeting Minutes Page 1
MEETING MINUTES
11:00 a.m. - 12:00 p.m.
Wednesday, November 15, 2023
1st Floor Committee Conference Room
455 E. Calaveras Blvd, Milpitas
CALL TO ORDER Mayor Montano called the meeting to order at 11:00 AM and called the roll.
PLEDGE of ALLEGIANCE
ROLL CALL
Mayor Montano led the pledge of allegiance.
PRESENT: Mayor Montano, Vice Mayor Chua
ABSENT: None
APPROVAL OF AGENDA Motion/Second Vice Mayor Chua/Mayor Montano
Motion carried by a vote of AYES: _All_ NOES: __None__
APPROVAL OF MINUTES October 23, 2023 Minutes
Motion/Second Vice Mayor Chua/ Mayor Montano
Motion carried by a vote of AYES: _All_ NOES: _None_
PUBLIC FORUM There were no members of the public present.
ANNOUNCEMENTS There were no announcements given.
BUSINESS ITEMS i. Report of City Manager Approved Contracts, ARPA Related Contracts, and the City Manager’s Procurement Card Activity – October 2023 a. The Committee reviewed and approved contracts and the City Manager credit card transaction(s) for October 2023
Motion/Second: A vote was not required
Recommendation: Receive October 2023 Report
ii. The Committee received a presentation by the City independent financial auditor, Grace Zhang, Audit Partner of Maze & Associates. Ms. Zhang explained the FY2022-23 audit planning and procedures, determination of no material or significant deficiency of internal controls, and forthcoming issuance of an unqualified ("clean") audit opinion for the Annual Financial Comprehensive Report (AFCR).
CITY LIAISON REPORTS
No reports given.
ADJOURNMENT Mayor Montano adjourned the meeting at 11:38 AM.
Mayor Carmen Montano
Vice Mayor Evelyn Chua
City of Milpitas
Independent Auditor’s Presentation
For Fiscal Year Ended June 30, 2023
Grace Zhang, CPA
Audit Partner
1 Who We Are
In business
since 1979
Municipal
auditor
since
1987
> 200
municipal
entities
> 50 cities/towns
> 40 ACFRs
Independent
of the City
2 Annual Audit
3 Completed
Audit of City’s financial statements
Agreed-upon procedures on the City’s
Appropriation Limit calculation
To be completed
Single Audit in January 2024
Standards
Auditing standards
generally accepted
in the USA
Government
Auditing Standards
4 Annual Timing
• June 2023
• Internal control environment
Interim
• September 2023
• Verification of financial data
Final
5 Results
Audit
Unmodified (i.e. Clean) Opinions
Appropriation Limit calculation AUP
No exception noted
6 Components of ACFR
Comprehensive Annual
Financial Report (ACFR)
Basic Financial Statements
(BFS)
Other components
7 High Level Summaries
Management’s Discussion and Analysis
(pages 5 to 21 of ACFR)
Statistical Section (pages 137 to 167 of
ACFR)
8 Memorandum on Internal Control (MOIC)
and Required Communications
9 MOIC
Control
Deficiencies Other Matters
Control Deficiency
10 • The design or operation of a
controlWhat?
• Management or employeesWho?
• In the normal course of
performing their assigned
functions
When?
• The prevention, detection or
correction of misstatements on a
timely basis
Does not allow
11 Control Deficiency
Reported on MOIC
Material
Weakness
Significant
Deficiency
FY 22 Audit
No Material
Weakness
One Significant
Deficiency
12