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HomeMy WebLinkAbout2019-4083 - Ordinance - 03/28/2019ORDINANCE NO. 2019-4083 AN ORDINANCE AMENDING CHAPTER 1, “GENERAL PROVISIONS”, OF THE CODE OF ORDINANCES OF THE CITY OF COLLEGE STATION, TEXAS, BY AMENDING SECTION 2-95 “CREATION OF AN AUDIT COMMITTEE”, AS SET OUT BELOW; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: PART 1: That Chapter 1, “General Provisions”, Section 2-95, “Creation of an Audit Committee” of the Code of Ordinances of the City of College Station, Texas, be amended as set out in Exhibit “A”, attached hereto and made a part of this Ordinance for all purposes. PART 2: That if any provisions of any section of this Ordinance shall be held to be void or unconstitutional, such holding shall in no way affect the validity of the remaining provisions or sections of this ordinance, which shall remain in full force and effect. PART 3: That said Ordinance becomes effective upon passage by the City Council. PASSED, ADOPTED and APPROVED this 28th day of March, 2019. ATTEST: APPROVED: _____________________________ ____________________________________ City Secretary Mayor APPROVED: ___________________________ City Attorney ORDINANCE NO. 2019-4083 Page 2 of 4 EXHIBIT “A” That Chapter 1, “General Provisions”, Section 2-95 “Creation of an Audit Committee”, of the Code of Ordinances of the City of College Station, Texas, is hereby amended in its entirety as follows: Sec. 2-95. - Creation of an Audit Committee. A standing committee to be known as the Audit Committee is hereby created. (1) Purpose. To ensure independence of the audit function, an Audit Committee is hereby established for the purpose of assisting the City Council in fulfilling their governance and oversight responsibility. (2) Membership and term. Membership and term of the Audit Committee shall be as follows: a. The Audit Committee shall consist of the Mayor, two City Council members and two citizen members each with a background in accounting, finance or auditing. The Mayor shall serve as Chair. City Council committee members shall be appointed and shall serve until the earlier of the expiration of their term on the City Council or until their successors are appointed. Vacancies shall be filled by the City Council for the unexpired terms of any member whose term becomes vacant. c. Citizen members shall be appointed for two-year terms or until their successors are appointed. d. Three members shall constitute a quorum for transaction of business. Any recommendation or decision which does not receive a majority of positive votes shall be deemed a negative report. The Audit Committee shall keep minutes of its proceedings, showing the vote, indicating such fact, and shall keep records of its examinations and other official actions, all of which shall be public record. (3) Meetings, duties, and responsibilities. The Audit Committee shall meet as needed to perform its duties, but shall not meet less than once quarterly. The duties and responsibilities of the Audit Committee shall include those as listed below. The Audit Committee shall also carry out other duties and responsibilities as may be assigned by the City Council. a. Reviewing the City Internal Auditor's audit plan annually; b. Performing regular evaluations of the City audit function and making recommendations to the City Council; c. Providing suggestions and comments for the annual audit plan; d. Monitoring follow-up on reported findings to ensure corrective action is taken by management; and e. Making recommendations to the City Council for the selection of the firm conducting the annual financial statement audits. ORDINANCE NO. 2019-4083 Page 3 of 4 (4) Audit function, scope, and oversight. The City Council directs the Audit Committee to oversee the City Internal Auditor's financial and performance audits of all departments, offices, boards, activities, outside agencies and programs of the City. Such audits shall be conducted in accordance with recognized government auditing standards. The goals of such audits are to independently and objectively determine whether: a. Activities and programs being implemented have been authorized by government Charter or Code, State law or applicable Federal law or regulations, and are being conducted and funds expended in compliance with applicable laws; b. The department, office, or outside agency is acquiring, managing, protecting, and using its resources, including public funds, personnel, property, equipment, and space, economically, efficiently, equitably, and effectively and in a manner consistent with the objectives intended by the authorizing entity or enabling legislation; c. The entity, programs, activities, functions, or policies are effective, including the identification of any causes of inefficiencies or uneconomical practices; d. The desired result or benefits are being achieved; e. Financial and other reports are being provided that disclose fairly, accurately, and fully all information required by law, to ascertain the nature and scope of programs and activities, and to establish a proper basis for evaluating the programs and activities, including the collection of, accounting for, and depositing of revenues and other resources; f. Management has established adequate operating and administrative procedures and practices, systems or accounting internal control systems and internal management controls; g. Indications of fraud, abuse or illegal acts are valid and need further investigation; and h. Any additional audit-related goals as assigned by the City Council. (5) Audit schedule. The Audit Committee shall review and comment on the annual City Internal Auditor's one-year audit schedule. The schedule shall include the proposed plan, and the rationale for the selections, for auditing departments, offices, boards, activities, subcontractors and outside agencies for the period. This schedule may be amended after review with the Audit Committee and City Council. (6) Contract auditors, consultants, and experts. Subject to City Council approval, the Audit Committee may direct the City Internal Auditor to obtain the services of certified public accountants, qualified management consultants, or other professional experts necessary to perform audit work, other than the City's annual audit. An audit that is performed by contract must be conducted by persons who have no financial interests in the affairs of the City or its officers. As directed by the Audit Committee, the City Internal Auditor will coordinate and monitor auditing performed by certified public accounting firms or other organizations employed under contract by the City to assist with audit related activities. ORDINANCE NO. 2019-4083 Page 4 of 4 Contracting for the external audit will follow the City's normal contracting processes except for the participation and oversight by the Audit Committee and City Internal Auditor. (7) Annual report. The Audit Committee may require the City Internal Auditor to prepare and submit an annual report to the City Council indicating audits completed, major findings, corrective actions taken by administrative managers, and significant issues which have not been fully addressed by management.