RES-9624 Repealing Resolution Nos. 8802 and 9298 and Amending Regulations of Audit CommitteeRESOLUTION NO. 9624
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE REPEALING RESOLUTION NO.
8802 AND RESOLUTION NO. 9298 AND AMENDING
THE PROCEDURES, RULES AND REGULATIONS
FOR THE AUDIT COMMITTEE.
WHEREAS, it has been proposed that the City Council of the City of Orange
establish an Audit Committee to provide advice and reeommendations and to assist the
City Council in discharging its responsibilities for the overall stewardship of the City's
financial affairs, and
WHEREAS, the City couneil, at its meeting of June 24, 1997, adopted
Resolution No. SS02, establishing an Audit Committee and setting forth procedures, rules
and regulations ofthe Committee, and
WHEREAS, the City counei1, at its meeting of June 13, 2000, adopted
Resolution No. 929S, amending Resolution No. SS02 to add an alternate eitizen
repn~sentative to replace any citizen representative that resigned during his or her term.
WHEREAS, the City couneil, at its meeting of May 14, 2002, approved the
addition of two citizen representatives (voting) and the elimination of the alternate and
the two City couneil members (non voting) from the Committee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Orange as follows:
SECTION 1: REPEAL
Resolution Nos. SS02 and 929S are repealed in their entirety.
SECTION 2: AUDIT COMMITTEE RULES AND REGULATIONS
1. ESTABLISHMENT OF THE COMMITTEE
The
City Council of the City of Orange hereby establishes the City of Orange Audit Committee.
2. PURPOSE
The Audit Committee's primary purpose is to assist the City Council in discharging
its responsibilities for the overall stewardship of the City's financial affairs. This will
include reviewing financial information; ascertaining the existenee and adequacy of
a'~counting and internal control systems and related safeguards over the City's assets;
and overseeing the audit function.
3. MEMBERSHIP AND APPOINTMENT
The Audit Committee shall consist of seven voting members. This shall include the
City Manager, the Internal Audit Manager and five citizen representatives. The
qualifications of the applicants for the citizen representatives will be reviewed by a
panel comprised of the City Manager, Finance Direetor, Internal Audit Manager, and
the City's independent financial auditor. Those candidates passing the qualifieation
review process will be interviewed by the City Council members. These eitizen
Committee members shall then be appointed by the City Council in accordanee with
procedures established for appointing members of the City's commissions, boards,
and committees.
4. QUALIFICATION FOR CITIZEN MEMBERSHIP
The citizen representatives must reside or be permanently employed in the City of
Orange. Qualifications being equal, preference will be given to residents of Orange.
They additionally must have the designation of Certified Public Accountant (CPA).
No member of the Committee shall be financially interested in any contraet, or
otherwise conduct any business with any member of the City Council, the City
Manager, the Finance Director, the Treasurer, the City, or any of its ageneies, either
on an individual basis or as a partner, major shareholder, member, or employee of any
firm.
5. COMPENSATION
Members of the Committee shall serve without compensation.
6. TERM OF MEMBERSHIP
The citizen representatives shall serve for a term of two years or until his or her
n:spective successor is appointed.
7. TIME AND PLACE OF MEETINGS
The Committee will meet at least twice annually and shall hold other meetings on an
as needed basis. Meetings will be condueted in compliance with the Brown Act. All
meetings of the Committee shall be held at the City Hall of the City of Orange located
at 300 E. Chapman Avenue, Orange 92S66.
8. CONFLICT OF INTEREST
All members of the Committee are subjeet to the requirements of the Conflict of
Interest eodes of the City of Orange and confliet of Interest laws of the State of
California.
9. OUTIES OF THE COMMITTEE
The role of the Committee is to augment management's accountability to the City
Council. The Committee aehieves this goal by:
Selecting the independent financial auditor for the financial statement
audit;
Monitoring the progress of the financial statement audit;
Evaluating the results of the financial statement audit;
Ensuring that any control weaknesses and legal compliance violations
identified in the course of the financial statement audit are promptly and
effectively remedied;
Serving as a direet eommunications link between the City Council and
the independent auditor;
Monitoring the adequacy of the City's internal control structure on an
ongoing basis, such as cash disbursements, cash receipting, treasury
transactions, etc., as examined by the internal audit function and the
independent financial auditor;
Maintaining minutes of Committee proceedings and reporting to the City
Council at least annually;
Reviewing results of contract compliance audits and financial statement
reviews conducted by the City's internal audit function, such as trash
eontracts, redevelopment agreements, and revenue audits;
Creating a report to identifY the source, use, and policies of the reserve
funds as they relate to the budget.
ADOPTED this II th
day of June, 2002.
A)~ f}J{
Mark A Murphy, Ma
ATllEST:
M~~ft!:d~~l~:
Cassandra J. cath , CIty Clerk, CIty of Orange
I hereby certify that the foregoing Resolution was duly and regularly adopted by
the City of Orange at a regular meeting thereof held on the 11 th
day of June, 2002, by the
following vote:
AYES: cOUNcILMEMBERS: SLATER, ALVAREZ, MURPHY, COONTZ, CAVECCHE
NOES: cOUNcILMEMBERS: NONE
ABSENT: cOUNcILMEMBERS: NONE
ABSTAIN: cOUNcILMEMBERS: NONE
A1~~~A'__~
Cassandra J. Cathcart, ity Clerk of the City of Orange