RES-8802 Establishing Reguluations of Audit CommitteeRESOLUTION NO. 8802
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ORANGE ESTABLISHING
AN AUDIT COMMITTEE AND SETTING FORTH
PROCEDURES, RULES AND REGULATIONS
FOR SAID COMMITTEE.
WHEREAS, it has been proposed that the City Council of the City of Orange establish
an Audit Committee to provide advice and recommendations and to assist the City Council in
discharging its responsibilities for the overall stewardship of the City's financial affairs.
WHEREAS, the City Council, at its meeting of June 24, 1997, established an Audit
Committee and approved procedures, rules and regulations of the Committee.
NOW, THEREFORE, BE IT RESOL YED by the City Council of the City of Orange
as follows:
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 existence and adequacy of accounting and
internal control systems and related safeguards over the City's assets; and overseeing the
audit function.
3. MEMBERSIDP AND APPOINTMENT
A. The Audit Committee shall consist of seven members. This shall include five voting
members: the City Manager, the Internal Audit Manager and three citizen
representatives. Two City Council members shall serve as non-voting members of
the Committee. Additionally, a City Council member will be designated to act as
alternate in the absence of one of the permanent Council
representatives.B. The qualifications of the applicants for the citizen representatives will be reviewed by
a panel comprised of the City Manager, Finance Director, Internal Audit Manager, and
the City's independent financial auditor. Those candidates passing the qualification
review process will be interviewed by the City Council members. These citizen
Committee members shall then be appointed by the City Council in accordance with
procedures established for appointing members of the City's commissions, boards, and
committees.C. The Mayor shall nominate, and the City Council approve, the two (2) City
Council members of the
4. QUALIFICATION FOR CITIZEN MEMBERSffiP
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 contract, 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 agencies, 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 MEMBERSffiP
The City Council members and the citizen representatives shall serve for a term of two years
or until his or her respective 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 conducted 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 92866.
8. CONFLICT OF INTEREST
All members of the Committee are subject to the requirements of the Conflict of Interest
codes of the City of Orange and Conflict of Interest laws of the State of California.
9. DUTIES OF THE COMMITTEE
The role of the Committee is to augment management's accountability to the City Council.
The Committee achieves 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 anycontrol weaknesses and legal compliance violations identified in the
course of the financial statement audit are promptly and effectively remedied;
Serving as a direct communications 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;
Reso. No. 8802 2 HB:cdl
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 contracts, 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 22nd dayof .July ,1997.
ATTEST:l/
I hereby certify that the foregoing Resolution was duly and regularly adopted by the City of
Orange at a regular meeting thereof held on 22nd of July, 1997, by the following vote:
AYES:COUNCILMEMBERS: MURPHY, SLATER, COONTZ, SPURGEON, ALVAREZ
NOES:COUNCILMEMBERS: NONE
ABSTAIN:COUNCILMEMBERS: NONE
ABSENT:COUNCILMEMBERS: NONE
fk=dc~ofOrange
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