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HomeMy WebLinkAboutCP 55 P �1 r , -oar0 � NS POLICY PROPOSAL DATE FILE NUMBER SUBJECT Audit Committee Review of PAGE 1 OF 1 7/24/79 CP-55 Audit Contracts PROPOSAL PROPOSED BY: Cq=c ER RE EW Council Audit Committee The City Charter requires that an independent audit of the books, accounts and records of all administrative departments of the City be performed annually. The City Council is responsible for the selection of an independent Certified Public Accountant to perform this task. In April, 1976, the City Council established a permanent audit committee to review and recommend to the City Council the firm that would perform the City's annual independent audit. Since 1976, the role of the Audit Committee has been expanded to include the review of some proposals for consulting contracts other than the audit. The involvement of the Audit Committee in reviewing other consulting contracts has varied from contract to contract because there has been no clearly defined guideline of Council policy established covering the Audit Committee's role in this review process. The need for a clearly defined guideline is evident in that questions have been raised by the Audit Committee, the City Council, and the staff as to which consulting pro- posals should be reviewed by the Audit Committee before they are forwarded to the City Council for final approval. Recommendation It is recommended that the City Council adopt the following policy: 1. The Council Audit Committee shall review all proposed contracts for audit engagements with fees of $3,000 or greater; 2. The Council Audit Committee shall review all proposals for con- sultant engagements with fees of $3,000 or greater except architectural or engineering contracts. Legality There is no legal implication in the proposal submitted. Fiscal Note There is no fiscal impact. V P .w�TfnTT.RT\ City Manager's Comments An 1 }� gr The staff supports the adoption of this policy. LEGALITY FISCAL NOTE CITY MANAGER'S COMMENTS ® City