RES-11064 Repealing Resolution 9624RESOLUTION NO. 11064
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ORANGE REPEALING RESOLUTION
NO. 9624 AND AMENDING THE PROCEDURES,
RULES AND REGULATIONS FOR THE AUDIT
COMMITTEE.
WHEREAS, the City Council is dedicated to ensuring fiscal responsibility and
accountability in the overall stewardship of the City's financial affairs; and
WHEREAS, on June 11, 2002, the City Council adopted Resolution No. 9624,
establishing an Audit Committee and setting forth procedures, rules and regulations of the
committee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as
follows:
SECTION I: REPEAL
Resolution No. 9624 is repealed in its entirety.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 existence and adequacy of accounting
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 five voting members. This shall include the City
Treasurer and four citizen representatives. The qualifications of the applicants for the
citizen representatives will be reviewed by a panel comprised of the City Manager, Finance
Director, and Internal Audit Manager Those candidates passing the qualification review
process will be presented to 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.
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. The
designation of Certified Public Accountant (CPA) or other related business experience, is
required. 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 MEMBERSHIP
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 East
Chapman Avenue, Orange, California 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 any control weaknesses and legal compliance violations identified in
the course of the financial statement audit are promptly and effectively remedied;
Resolution No. 11064 2
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;
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, internal
controls, and revenue audits;
Reviewing results of compliance audits and reviews conducted by outside agencies,
such as Department of Transportation grants, M2 funds for the Senior Mobility
program and the Ground Emergency Medical Transport (GEMT) supplemental
reimbursement program.
ADOPTED this 13th day of February 2018.
ATTEST:
Teres E. Smith, M yor, City of Orange
I, MARY E. MURPHY, City Clerk of the City of Orange, California, do hereby certify that
the foregoing Resolution was duly and regularly adopted by the City Council of the City of Orange
at a regular meeting thereof held on the 13th day of February 2018, by the following vote:
AYES: COUNCIL MEMBERS: Alvarez, Whitaker, Smith, Murphy, Nichols
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAINED: COUNCIL MEMBERS: None
Mary E:- urp ity Clerk, City of O e
Resolution No. 11064 3