HomeMy WebLinkAbout1991-16 Reorganize Audit Committee RESOLUTION NO. 91- /~
A RESOLUTION CONCERNING THE ESTABLISHMENT, OBJECTIVES, AND
RESPONSIBILITIES OF THE MUNICIPAL AUDIT COMMITTEE.
BE IT RESOLVED by the Mayor and City Council of the City of
Ashland, as follows:
SECTION 1. Municipal Audit Committee -- Established. There is
hereby established a Municipal Audit Committee which shall
consist of seven (7) voting members. The Committee may request
the presence of any appointive City official(s) at its meetings.
SECTION 2. Term -- Vacancies. The voting members shall be
appointed annually by the Mayor with confirmation by the City
Council. The voting members shall include one member of the City
Council, one member of the Parks & Recreation Commission, one
member of the Hospital Board, one lay member of the Citizens
Budget Committee, and three citizens at large positions.
SECTION 3. Quorum -- Rules and Regulations. Four (4) voting
members of the Committee shall constitute a quorum. At its first
meeting each calendar year, the Committee shall elect a chair, a
vice chair, and a secretary, who shall hold office at the
pleasure of the Committee. The Committee shall establish rules
for its meetings, and shall meet once during the planning stages
of the audit, and at such other times as the Committee deems
necessary.
SECTION 4. Mission. The mission of the Municipal Audit
Committee is to advise and assist the Council in meeting its
responsibilities for the accountability and stewardship of public
assets. The Committee should also advise and assist the Council
in audit management processes, in ensuring that audit processes
are independent in fact as well as in appearance, and in
facilitating communications on financial matters between the
Council, the external auditor, and the staff whose operations are
being audited.
SECTION 5. Responsibilities -- Generally. The responsibilities
of the Committee are to establish and maintain continuing
communications with the independent auditors, Finance Department
and elected officials, with respect to:
1. Annual financial reports prepared by management.
2. Scope and results of the annual audit and related fees.
3. The City's accounting and financial reporting policies
and practices.
4. Adequacy and effectiveness of the system of internal
accounting controls.
5. Scope of other services performed by the independent
auditors.
6. Evaluating the services provided by the independent
auditors and recommending their retention, or when
necessary, their termination and replacement.
7. Approval of the request for proposals (RFP) for audit
services, and assistance in soliciting participation by
potential proposers.
8. Evaluating the technical qualifications of proposing
audit firms and making recommendations on auditor
selection to the City Council.
9. Any other matters relative to the audit or the
government's accounts and its financial affairs that
the Committee, at its own discretion, deems necessary.
SECTION 6. Significant Accountinq Policies -- Notification.
City management shall notify the Audit Committee of any of the
following:
1. The initial adoption of an accounting principle.
2. Changes in accounting principles or their application.
3. Accounting for unusual transactions.
4. Accounting policies in matters where there is a lack of
consensus on the appropriate accounting treatment.
SECTION 7. Reports. The Committee shall submit copies of its
minutes to the City Council. Reports or recommendations of the
Committee shall be considered advisory in nature and shall not be
binding on the Mayor or City Council.
SECTION 8. Compensation. The voting members of the Committee
shall receive no compensation for services rendered.
SECTION 9. Resolution No. 84-14 is hereby repealed.
The foregoing Resolution was READ and DULY ADOPTED at a regular
meeting of the City Council of the City of Ashland on the ~
day of ~.~_ , 1991.
Nan E. Franklin
City Recorder
SIGNED and APPROVED this ~-~ day of <~_~ ,
1991. /
~Catherine M. Golden
Mayor