The purpose of the Audit Committee is to assist City Council in fulfilling its oversight of management responsibilities over financial and fiduciary matters. The Audit Committee enhances the reliability of financial reporting, the internal auditor’s independence, the system of internal and external controls, and the monitoring of compliance with laws, regulations, and the Ethics Policy.
The Audit Committee is composed of five members: one Council member and four outside members. City Council will appoint Audit Committee members. Each committee member will be independent (no conflicts of interest) and financially literate, with the ability to read and understand audit reports. Audit Committee members must have a minimum of 5 years of experience in the management of accounting, finance, or audit for a corporation, non-profit, or government. There must be at least two Certified Public Accountants or Certified Internal Auditors serving on the Audit Committee. The outside Audit Committee members will serve three (3) year staggered terms. The Internal Auditor will serve as the committee liaison but will not be a voting member of the Audit Committee.
The Audit Committee responsibilities are as follows:
External Auditors and Financial Statements
- Review the performance of the external auditors, and recommend to City Council approval on the appointment or discharge of the auditors.
- Continually evaluate the independence of the external auditors.
- Request from auditors and staff advice for insuring or maintaining auditable financial statements.
- Review with management and the external auditors the results of the audit, including any difficulties.
Internal Audit
- Review the annual internal audit plan and all significant changes to the plan.
- Review the effectiveness of the internal audit function.
- Regularly review internal audit reports and advise City Council on significant issues identified and actions taken to resolve those issues.
Governance, Risk Management, Internal Controls, and Compliance
- Understand the scope of internal and external auditors’ review of internal control over financial reporting and obtain reports on significant findings and recommendations, together with management’s responses.
- Monitor controls performed directly by senior management and controls designed to prevent or detect senior management override of other safeguards.
- Establish procedures for receiving, retaining, and treating complaints regarding accounting, internal controls, or auditing matters. Such practices should expressly provide for the confidential, anonymous submission by employees.
- Review the findings of any examinations by regulatory agencies and any auditor observations.
- Obtain updates from management and City legal counsel regarding compliance matters on an as-needed basis.
Other Responsibilities
- Report to City Council about committee activities, issues, and related recommendations as needed, but at a minimum, one time a year.
- Provide an open avenue of communication between internal audit, external auditors, and the City Council.
- Review any other reports of the City issues that relate to committee responsibilities.
- Review and assess the adequacy of the committee charter at least every two years and ensure appropriate disclosure as may be required by law or regulation.
- Confirm annually that all responsibilities outlined in this charter have been carried out.
- Evaluate the committee’s and individual members’ performance regularly.
The Audit Committee meets quarterly on the third Thursday of the month at 3:00 p.m. The following dates are scheduled for upcoming Audit Committee meetings:
- November 18, 2021
- January 20, 2022
The committee’s webpage includes instructions for citizens to participate in committee meetings, meeting agendas, and meeting minutes.
