City of Harrisburg, PA
Dauphin County
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Table of Contents
Table of Contents
[HISTORY: Adopted by the City Council of the City of Harrisburg 7-3-2007 by Ord. No. 6-2007. Amendments noted where applicable.]
This chapter shall be known as and may be cited as the "Audit Committee Code."
The Audit Committee (hereinafter "the Committee") shall provide independent review and oversight of the City's financial reporting processes, internal controls, and independent auditors. In effectively carrying out its duties and responsibilities, the Committee will help ensure that the City properly develops and adheres to a sound system of internal controls and utilizes procedures to objectively assess the City's accounting and auditing practices. Additionally, the Committee will help ensure that the independent auditors, through the independent audit, objectively assess the government's financial reporting practices.
The Committee shall be comprised of five voting members, who are appointed by Council, and the Chairperson of the Budget and Finance Committee of City Council or his or her designee, who shall serve as an ex officio nonvoting member of the Committee.
All members must either reside within or work within the City of Harrisburg for a period of one year prior to appointment to the Committee and must maintain residence or employment within the City for the duration of the term served on the Committee.
At least three members of the Committee shall have significant financial experience in either the private business sector or the government sector. Such individuals shall have knowledge and/or experience relating to the following:
Generally accepted accounting principles and financial statements;
Preparing or auditing financial statements of comparable entities;
Applying generally accepted accounting principles in connection with the accounting for estimates, accruals, and reserves;
Internal accounting controls; and
Audit Committee functions.
At least one member of the Committee shall be a certified public accountant.
Terms on the Committee shall be for five years and shall be staggered.
Employees of the City of Harrisburg or a related entity shall be ineligible to serve on the Committee. The Chairperson of the Budget and Finance Committee shall be exempt from this restriction.
All members of the Committee should understand the role of an audit committee and possess or obtain a basic understanding of financial reporting and auditing.
The Committee shall:
Hold meetings at least quarterly and at additional times when necessary;
Select independent accountants and/or auditors to prepare the annual audit and have the ability to terminate said accountants and/or auditors;
Be responsible for oversight of the work performed by any and all independent auditors and/or accountants retained to perform the annual audit or review;
Invite individuals to Committee meetings to provide pertinent information;
At least once every five years, review ordinances relating to the Committee and make recommendations for proposed changes. In making said recommendations the Committee shall consider any new laws, regulations, or accounting and auditing standards;
Prepare and present to City Council and the Mayor a written annual report of the Committee's activities;
Establish and maintain procedures to receive and handle confidential complaints, including those of an anonymous nature, regarding accounting or auditing matters;
Have access to reports of internal auditors and the internal annual work plan; and
Upon initial establishment, prepare and adopt bylaws for operating the Committee and, from time to time as needed, amend said bylaws.
To ensure proper oversight of the annual audit by the Committee, all independent accountants and/or auditors retained for the purpose of preparing or issuing an independent audit or review shall report directly to the Committee.
Committee members shall not receive any compensation for serving as a member of the Committee.
A Committee member may be removed from his or her position by Council for failing to comply with the provisions of the Audit Committee Code.