RES-9617 Approving Charter for Internal Audit DivisionRESOLUTION NO. 9617
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE APPROVING A CHARTER FOR
THE INTERNAL AUDIT DIVISION.
WHEREAS, it is recommended by the Institute of Internal Auditors Standards
for the Professional Practiee of Internal Auditing that a formal charter be approved by the
governing board; and
WHEREAS, the eharter states the purpose, authority, and responsibility for the
internal audit division; and
WHEREAS, the City of Orange Audit Committee recommends approval of the
charter.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Orange as follows:
I. Purpose:
The Internal Audit division was established to assist the City Council in
diseharging their duties and responsibilities for the overall stewardship of
the City's financial affairs by ensuring that proper internal eontrols are in
place and by performing independent audit and review of various financial
and operational functions within the City.
II. Independence:
To maintain the required independence, the Internal Audit Manager
reports directly to the City Manager. In addition, the Internal Audit
Manager reports audit activity to the Audit Committee.
III. Authority
The Internal Audit Manager is authorized to direet a broad, comprehensive
program of internal auditing within the City's activities. To accomplish
this, the Internal Audit staff shall have, full, free and umestricted access to
all records, activities, property, ete. related to their audit activities and
shall have the eomplete cooperation of all City staff in completing an audit
function.
IV. Responsibility:
Develop annual audit plans to provide for audit and evaluation of
organizational activities based on risk assessment
Examine the effectiveness of all levels of management in their stewardship
of organization resources and their compliance with established policies
and procedures
Recommend improvement of management controls designated to
safeguard organization resources, promote organization growth, and
ensure eompliance with laws and regulations
Review procedures and records for their adequacy to accomplish intended
objectives, and appraise policies and plans relating to the activity or
funetion under audit review
Review financial provisions of contractual services or other City business
relationships to ensure compliance
Conduct all audits in accordanee with Standards for the Professional
Practice of Internal Auditing as promulgated by the hlstitute of Internal
Auditors.
Publish reports on the results of audit examinations, including
recommendations for improvement
Follow up to ensure that appropriate action is taken by the operating
management to reported deficient conditions
Conduct special examinations at the request of management
Interface with the City's external auditors and the City Audit Committee
V. Effective Date:
This Charter shall take effect upon its approval by the City Council of the
City of Orange.
ADOPTED this 2Sth day of May, 2002.
y , City of Orange
ATTEST:
I hereby certify that the foregoing Resolution was duly and regularly adofted bytheCityCounciloftheCityofOrangeataregularmeetingthereofheldonthe2Stdayof
May, 2002, by the following vote:
A YES: COUNCILMEMBERS: SLATER, ALVAREZ. MURPHY, COONTZ, CAVECCHE
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE
644~~-1'~~~4f/~
Cassandra J. Cat , City Clerk of the City of Orange
Reso. No. 9617