HomeMy WebLinkAboutResolution 3802-10-2009 RepealedAPPROVING THE CHARTER FOR
THE AUDIT AND FINANCE ADVISORY COMMITTEE
WHEREAS, on August 11, 2009 the City Council adopted Resolution No. 3775 -
08 -2009 amendino, the City Council's Rules of Procedure to establish the Audit and
Finance Advisory Committee (the "Committee") as a standing committee; and
WHEREAS, Section 7-5 of such amended Rules of Procj4NYprovides that the
specific duties and responsibilities of the Committee are to � t forth in a charter
adopted by the City Council by resolution, and until that tim original charter for the
Committee, adopted on October 3., 2006 pursuant to M -10-1 e 15473, will continue in
effect-, and
WHEREAS, on August 27, 2009 the Committe nanimously voted to recommend
that the City Council adopt the revised charter tbc�hed hereto as Attachment 1, which
clarifies and updates the original charter; and
WHEREAS, City staff concurs with 11�r 1 ecornmendation; and
NOW, THEREFORE, BE I Bj SOLVED BY THE CITY COUNCIL OF THE
CITY OF FORT WORTH, TEN.
THAT the charter ed hereto as Attachment I (which contains revisions to the
original charter adopte October 3. 2006 pursuant to M&C G-154731. as reflected in the
redlined document at ed hereto as Attachment 2) is hereby approved and shall govern
ons
the duties and obliwof the Committee from the date of adoption of this Resolution
until such time as the City Council may adopt a revised charter for the Committee in
accordance with Section 7.5 of the City Council's Rules of Procedure,
FURTHER, THAT the charter adopted pursuant to M&C G-15473 is hereby
repealed.
Adopted this 201" dav ot"Octuber 2009.
BE=
RESOLUTION NO. 3802-10-2009
ATTEST:
By: - -----
Marty Hendrix, City Sccretary
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RESOLUTION NO. 3802-10-2009 FORTWORTH
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Attachment I
City of Fort Worth
Audit and Finance Advisory Committee Charter
The Audit and Finance Advisory Committee (the -Committee") shall provide advice to the City
Council with respect to oversight for financial reporting., internal controls and auditing activities. The
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Committee shall not have direct authority over any such matters, but may vote to recommend that the City
Council take certain actions or direct the City Manager to take certain actions. The ity Council may refer
appropriate matters for review by the Committee, but the Committee's oversighth*kch matters shall be
purely
Committee members shall make all requests and direct all Ki_� ana(-Yer/Council form of
urely advisory in nature. In accordance with the City Charter's establishment I
L 1�rt to the City Manager or
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assistant City Manager assigned as staff liaison for the Committee and sh�zlot give orders or directions to
any other administrative staff subordinates.
Unless otherwise indicated below or specifically requeste(�A; the City Council, the Committee shall
perform or undertake the following tasks as the Committee dt tines, in its sole discretion, to be necessary:
I . Annually review and make recommendations with r to the appointment of the independent auditors and
the related audit fees.
Review and evaluate the performance of the indent auditors and make related recommendations to the
City Council.
2. Review the policies and procedures with spect to the City's elected officials and appointed officers. including
the use of expense accounts, public , s. and public property, including, for example, the use of City
vehicles. Consider the results of a
16w of these areas by the City Auditor or the independent auditors.
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3. Make recommendations as to ecessitv of employment of audit firms other than the principal independent
auditors for services that th or the independent auditor determines would not be appropriate for the
independent auditor to
4 Inquire of the City : Office, the City Auditor, and the independent auditors about significant risks or
exposures facing the ' assess the steps management has taken or proposes to take to minimize such risks and
periodically review compliance xvitlisuch steps.
Annually review with the independent auditor, the Finance director of the City, the City Manager's Office, and
the City Auditor the audit scope and plan of the City Auditor and the independent auditors, Address the
coor(lination of audit efforts to assure the conipletenesiof coverage, reduction of redLindant et", rte, and the
ettecti-ve use of audit resources,
-4 ,
6. Review with management and the City Auditor:
• Significant findings on internal audits during the year and management's responses thereto
• Any difficulties the internal audit team encountered in the course of their audits, including any restrictions on
the scope of their work or access to required information
• Any changes required in the scope of their internal audits
• The internal audit department budget and staffing
• The internal audit department charter
• The internal audit department's compliance with applicable standards (for example, Governtricnt Auditing
Standards. or the Institute of Internal Auditors' (II A's) Standards for the Professional Practice of Internal
Auditing)
Inquire of the City Manager's Office regarding the fiscal health of the City as well as the financial status of the
City in relation to the adopted budget,
•
8. Review with the independent auditors and the City Auditor:
• The adequacy of the City's internal controls including computerized information - 's i controls and security
• Any related significant findings and recommendations of the independent auditofsVd internal auditors
together with management's responses thereto 11\ ##
(See the tools "Internal Control: A Tool for the Audit Committee" and "Fraud trULYthe Responsibilities of the
Government Audit Committee" in this toolkit.)
9. Review with the independent auditors the financial statements and in genient letters of the City of Fort
Worth's Employees* Retirement Fund, Fvaluate the impact of th R firement Fund's obligations on the City's
11
fiscal condition. Make recommendations rewarding the City., dment Fund ordinance, Recommend as
necessary that the City Council commission actuarial studie, 38,.,et allocation studies, plan assumption studies
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and other professional reports and reviews to measure th t rement Fund's overall health and its comparison to
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other public employees' retirement funds based on dat ared by the National Public Employees' Retirement
System (NCPERS).
10, Review with the City Manager's Office and thoc
, oyependent auditor the effect of any regulatory and accounting
initiatives. such as related organizations f (T structures, derivatives. or securities lendine.
11. Review with the independent auditor tl performs the financial statement audit:
• All critical accounting policies dl%pa ices used by the City
• All alternative treatments of fil N a I information within generally accepted accounting principles that have
an
been discussed with the Cit � gement. the ramifications of each alternative, and the treatment preferred
by the City. 1sl a
itiancial 12. Annually review the C' ��W_ Management Policy Statements for revisions and annual adoption by the
City CounciL, V
13, Review with the City Manager's Office and the independent auditors:
• The City's annual financial statements, related footnotes, and management's discussion and analysis
• The independent auditors audit of the financial statements and their report thereon
• The independent auditors' judgments about the quality, not Just the acceptability, of the City's accountin�
principles as applied in its financial reporting
• The independent auditors ' Sill2le audit of the federal a,.vards administered by the City and their reports
thereon
• Anvsiunfflcant chances required in the independent auditors' audit vial]
• Anv serious difficulties or disputes with management encountered during the audit
• Matters required to be discussed by Statement on Auditing Standards (SAS) No, 6 1, Communication 117th
Audi Committees (AICPA, Prol�ssional Siandards, vol. 11, AU see, _3801, as amended, U.S. Govemnlent
Accountability Office's Gotvrn rat nt AudiungSrandards: and the U,S, Office of Management and Budget's
Circular A-! 3 3 related to the conduct of the audits
CaW, ns bevveen the 'ndevenden- auditors find mat-w�etrient, Such d"; aniv
All 111111
it qundican vvntten connnuni 11)
management letter or schedule of una cl 1- ed 1
iust diffierences
14.
Review with the City Attorney and the City Auditor legal and regulatory matters that, in the opinion of the City
Manager's Office, may, have a material impact on the financial statements and compliance with federal, state,
and local laws and regulations.
15.
Periodically review the City's code of conduct to ensure that it is adequate and up to date.
Review with the City Auditor and the City Attorney the results of their review of compliance monitoring with
the code of conduct.
16.
Review the procedures for the receipt, retention, and treatment of complaints received by the City regarding
accountinL,. internal accounting controls, auditing matters. or suspected fraud that may be submitted by any
zn t� - -
party internal or external to the organization.
Review any complaints that might have been received. current status, and resolution if one has been reached.
1?.
Review procedures for the confidential, anonymous submission by the City's employees of concerns regarding
questionable accounting or auditing matters. or suspected fraud. 0
Review any submissions that have been received, the current status., and the resolut one has been reached.
18.
Monitor and evaluate the City's information technology and internal control st
irry i, s
19.
Annually review the Committee's own effectiveness and make recominenptw , to the City Council regarding
desired changes to this Charter. 4�p
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RESOLUTION NO. 3802-40-2009
The Audit and Finance Advisory Committee (the -Committee") shall provide advice to the Citv
Council with respect to oversight for financial reporting. internal controls and auditing activities. The
Committee shall not have direct authority over any such matters, but may vote to recommend that the City
Council take certain actions or direct the City Manager to take certain actions, The C.4tv Council may refer
appropriate matters for review by the Committee, but the Committee's oversight h* ch matters shall be
purely advisory in nature. In accordance with the City Charter's establishment ana(ler,"Council form of
government, Committee members shall make all requests and direct 11 iti s to the City Manager or
al
Assistant City Manager assigned as staff liaison for the Committee and sJMit give orders or directions to
in -
anv other administrative staff subordinates. , Q,(
Unless otherwise indicated below or specifically rcquestec�N, the City Council, the Committee shall
perform or undertake the following tasks as the Committee d (A I nes, i n i ts sole discretion, to be necessary:
'ar
I Annually review and make recorm-nendati -ith respect to the appointment of the
independent auditors and the related audi S.
Review and evaluate the performance e independent auditors and make related
recommendations to the Citv Couop
N
2. Review the policies and proced s with respect to the City's elected officials and appointed
officers, including the use q mse accounts, public monies, and public property,
4-
use
including, for example, t of City vehicles. Consider the results of any review of these
areas by the City Auditooto the independent auditors.
3. Make recommend, s as to the necessity of employment of audit firms other than the
principal indepc t auditors for services that the City or the independent auditor
determines would not be appropriate for the independent auditor to perform.
4 Inquire of the City Manager's Office, the City Auditor, and the independent auditors about
sumificant risks or exposures facing the City'. assess the steps management has taken, or
proposes to take to minimize such risks and periodically review compliance with such steps.
5. Annually review with the independent auditor, theFinancc director of the City. the City
Manager's Office, and the City Auditor the audit scope and plan of the City Auditor and the
independent auditors. Address the coordination of audit efforts to assure the completeness of
coverage, reduction of redundant efforts, and the effective use of audit resources.
6. Review with management and the City Auditor:
• Significant findings on internal audits during the year and management's responses thereto
• Any difficulties the internal audit team encountered in the course of their audits, including
any restrictions on the scope of their work or access to required information
• Any changes required in the scope of their internal audits
• The internal audit department budget and staffing
• The internal audit department charter
• The internal audit department's compliance with applicable standards xample.,
GovcrnmcntAuditing Standards, or the Institute of Internal Auditors, 's) Standards for
the Professional Practice of Internal Auditing)
7. Inquire of the City Manager's Office regarding the fiscal health N e City as well as the
financial status of the City in relation to the adopted budget
V%
S. Review with the independent auditors and the City A i tor:
• The adequacy of the City's internal controls incl computerized information system
controls and security
• Any related significant findings and reconN 10 ations of the independent auditors and
internal auditors together with managclr� R s responses thereto
(See the tools "Internal Control: A To�ee Audit Committee" and "Fraud and the
Responsibilities of the Government A . ommittee" in this toolkit.)
9. Review with the independent 4 ors the financial statements and management letters of the
City of Fort Worth's Emplokes Retirement Fund. Evaluate the impact of the Retirement
Fund's obligations on th�inance. &'y's fiscal condition. Make recommendations regarding the
City's Retirement Fu Recommend as necessary that the City Council
commission actuar� Vdies, asset allocation studies, plan assumption studies and other
professional rep, of nd reviews to measure the Retirement Fund's overall health and its
r
comparison to er public employees' retirement funds based on data prepared by the
National Public Employees' Retirement System (NCPERS).
10. Review with the City Manager's Office and the independent auditor the effect of any
regulatory and accounting initiatives. such as related organizations financing structures,
denvatives, or securities lending
11. Review with the independent auditor that performs the financial statement audit:
• All critical accounting policies and practices used by the City
• All alternative treatments of financial information within generally accepted accounting
principles that have been discussed with the City's management, the ramifications of each
alternative, and the treatment preferred by the City.
12. Annually review the City's Financial Management Policy Statements for revisions and
annual adoption by the City Council.
13. Review with the City Manager's Office and the independent auditors:
• The City's annual financial statements, related footnotes, and management's discussion
and analysis
• The independent auditors' audit of the financial statements and thei rt thereon
• The independent auditors' judgments about the quality, not just t cceptability, of the
City's accounting principles as applied in its financial reporti
• The independent auditors' single audit of the federal awardn.,?dministered by the City and
their reports thereon
• Any significant changes required in the independent aN�ors' audit plan
• Any serious difficulties or disputes with rnanagemr
I btencountered during the audit
• Matters required to be discussed by Statement uditing Standards (SAS) No. 61,
Communication If7th Audit Committees (Al Professional Standards, vol. 1, AU sec.
380), as amended; U.S. Government Acc!�bility Office's Government Auditing
Standards; and the U.S. Office of ManV.%Yent and Budget's Circular A-1313 related to the
conduct of the audits .9,
• All significant written commun' I V's betweent he independent auditors and
management, such as any man glEment letter or schedule of unadjusted differences
pA` m
14. Review with the City A and the City Auditor legal and regulatory matters that, in the
opinion ofthe City Ma 0
,4iN 's Office, may have a material impact on the financial statements
L
and compliance wit eral, state, and local laws and regulations.
15. Periodically reAF the City's code of conduct to ensure that it is adequate and up to date.
Review with the City Auditor and the City Attorney the results of their review of compliance
monitoring with the code of conduct.
16. Review the pro-cedures for the receipt, retention, and treatment of complaints received by the
Citv regardini, accounting, ratemal accounting controls, auditing att ers, or suspected fraud
that may be submitted by any party internal or external to the organization.
Rev-few any complaints that might have been rec6ved, current status, and resolution if one
has been reached.
17. Review procedures for the confidential, anonymous submission by the City's employees of
concerns regarding questionable accounting or auditing matters, or suspected fraud.
Review any submissions that have been received, the current status, and the resolution if one
has been reached.
18. Monitor and evaluate the City's information technology and internal control strategies.
19. Annually review the Committee's own effectiveness and make recommendations to the City
Council regarding desired changes to this Charter.
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COUNCIL ACTION: Approved on 10/20/2009 - Res. No. 3802-10-2009
1ATE: Tuesday, October 20, 2009
:-OG NAME: 12A&F CHARTER
10:49
SUBJECT:
Adopt a Resolution Approving the Charter for the Audit and Finance Advisory Committee
RECOM MIEN DATION: n
It is recommended that the City Council adopt the attached resolution appro, 'NF Charter for the Audit
and Finance Advisory Committee. O
DISCUSSION,:
On August 11, 2009, the City Council adopted Resolution No. 37<§8-2009 amending the City Council's
Rules of Procedure to establish the Audit and Finance Advlsolwttsommittee (the Committee) as a standing
committee, The Resolution provided that the specific duties ar)2responsibilities of the Committee is to be
set forth in a charter adopted by the City Council by res2_k1W. In the meantime, the existing charter for
the Committee, adopted by the City Council pursuant to9Z&C G -15473 on October 3, 2006, prior to
establishment of the Committee as a standing co nn ' has continued in effect.
*
The 2006 Charter was adopted shortly after they �e
&$ mittee was initially created. On August 27, 2009, the
Committee unanimously voted to recommen�4Nt the City Council adopt the charter attached to the
proposed Resolution, which revises the o ill charter to better clarify the duties and responsibilities of
the Committee. A redlined copy of the 0 al charter is also attached to the Resolution to show the
changes reflected in the revised charb +i t,
,4 y staff concurs with the Committee's recommendation that the
City Council adopt this revised chkrv. 3
FISCAL, INFORMATION I G IFICATION:
The Financial Managemervices Director certifies that this action will have no material affect on City
funds, lqz X
FUND CENTER,$:
• Fund/Account/Centers
CERTIFICATIONS:
•
Originating Department Head:
Additional Information Contact:
Karen Montgomery (6222)
David Yett (7623)
✓ogname- 12A CHARTER Page I of I