[HISTORY: Adopted by the Mayor and Council of the Borough
of Madison 12-9-2013 by Ord. No.
47-2013.[1] Amendments noted where applicable.]
[1]
Editor's Note: This ordinance was adopted as Chapter 9-9,
but was redesignated in order to maintain the organization of the
Code.
The Advisory Audit Committee is hereby established, to be known
as the "Advisory Audit Committee of the Borough of Madison" (hereafter
referred to as the "Committee"). The Committee shall consist of no
more than five members, excluding the ex-officio members.
The Committee's purpose and responsibilities are as follows:
A.Â
To make
recommendations to the Mayor and Council regarding records and recordkeeping
procedures.
B.Â
The Committee
will review the financial reporting and disclosure process.
C.Â
The Committee
will monitor accounting policies and principles.
D.Â
The Committee
will recommend the hiring of an auditor with the consent of the Mayor
and Council.
E.Â
The Committee
will evaluate the performance and independence of external auditors.
F.Â
The Committee
will discuss risk management policies and practices with the CFO,
Borough Administrator, and the Assistant Borough Administrator.
G.Â
The Committee
will review the auditor’s findings and recommendations and ensure
that timely action is taken to remediate any material issues mentioned.
H.Â
The Committee
will hold a minimum of three public meetings annually which shall
be open to the public and shall take place at the Madison Municipal
Building unless otherwise noted.
All members of the Committee shall be residents of the Borough
of Madison. All members shall serve without compensation. The Committee
shall be comprised of the following persons, up to a maximum of five
members appointed by the Mayor with the advice and consent of Council:
A.Â
One Finance
Chairperson or Co-Chairperson member of the Council.
B.Â
Up to four
Madison residents who have accounting and/or auditing expertise and
experience. In addition to direct practitioners, individuals who have
been involved in an audit, or are familiar with audits, are also eligible
for appointment.
C.Â
The CFO,
Borough Administrator and Assistant Borough Administrator shall be
ex-officio members of the Committee.
A.Â
The Council
Finance Chairperson or Co-Chairperson shall serve annually.
B.Â
The resident
members shall serve for a term of three years (staggered terms). The
terms of office shall commence upon the day of each member's appointment,
unless otherwise specified at the time of appointment, and be for
the initial respective periods of one, two, and three years. The term
of each appointee shall be designated in his or her appointment. All
subsequent appointments, except to fill vacancies, shall be for the
full three-year term, to take effect on January 1 next succeeding
such appointment.
C.Â
The Mayor
shall designate the Council Finance Chairperson or Co-Chairperson,
on a rotation basis, as Committee Chairperson, and the Committee shall
select a Secretary to record minutes. The Committee shall establish
its meeting schedule, which shall be duly published. The Committee
will meet at least three times a year. A first meeting each year should
have as an agenda item a discussion concerning the identification
and appointment of an audit firm, which will have to be approved by
a majority of the Council. A second meeting should take place with
the auditors when they are on site, but prior to completing their
audit. Ideally, this second meeting will occur shortly after, if not
prior to, the start of the audit. The third meeting will again include
the auditors to review their findings. The Committee is responsible
for an annual report to the Council concerning the audit and any recommendations
with regard to financial reporting, recordkeeping and risk management.
Such report shall be written, oral, or both, depending on the preferences
of the Council.
Any vacancy occurring by reason of the death, resignation or
removal of any member shall be filled for the unexpired term by the
Mayor with advice and consent of the Council.
Members of the Standing Advisory Audit Committee shall be indemnified pursuant to Chapter 14 (Defense and Indemnification of Municipal Officials and Employees) of the Madison Borough Code.