[R.O. 2011 § 125.170; R.O. 2009
§ 33.040; CC 1981 § 2-174; Ord.
No. 86-2, 1-7-1986; Ord. No. 95-122, 5-4-1995; Ord. No. 07-162, 6-11-2007; Ord. No. 08-16, 1-23-2008; Ord. No. 11-76 § 2, 4-20-2011; Ord.
No. 14-137 § 1, 7-1-2014]
A. Establishment And Purpose. There is hereby established an Audit Committee of the City of St. Charles, Missouri. The purpose of the Audit Committee is to ensure fiscal accountability and transparency, and it shall assist the City Council in fulfilling its financial oversight responsibilities by reviewing and evaluating the financial reporting process, compliance with related laws and regulations, the internal control system and the audit process. The Audit Committee shall have the composition, powers, and duties as prescribed in Chapter
125, Article
I of this Code of Ordinances.
[Ord. No. 24-001, 1-2-2024]
B. Members, Qualifications, Terms And Meetings.
[Ord. No. 15-157 § 1, 7-21-2015; Ord.
No. 24-001, 1-2-2024]
1.
Members. The Audit Committee shall consist of three (3) members who shall be City residents or residents of the region with an interest in the City. Notwithstanding Section
125.100, the Council liaison on the Audit Committee shall not vote on the Committee.
2.
Qualifications. All members should
possess a basic understanding of governmental financial reporting
and auditing. At least one (1) of the three (3) members shall be a
financial expert, preferably a certified public accountant.
3.
Terms. The City Councilmembers liaison
of the Audit Committee shall be appointed for a one-year term consistent
with Charter Section 3.16, but nothing shall prohibit the reappointment
of the same Councilmember to the Audit Committee. The three (3) members
shall be appointed for a three-year term.
4.
Meetings. Any member of the Audit
Committee may call a meeting of the Committee. The affirmative vote
of a majority of the entire Audit Committee shall be necessary to
adopt any motion or resolution. Any Audit Committee member may place
an item on a meeting agenda. The Audit Committee shall meet at least
three (3) times a year and may convene additional meetings, as circumstances
require. Audit Committee members are expected to attend each meeting,
in person. The Audit Committee will invite members of management,
auditors or others to attend meetings and provide pertinent information,
as necessary. Meeting agendas will be prepared by the Audit Committee
Chair and provided in advance to members, along with appropriate briefing
materials. The Audit Committee Chairperson will also be responsible
for briefing the City Council on Audit Committee business.
C. Definitions. For purposes of this Section,
the following words shall have the following meanings:
CITY MANAGEMENT
The executive branch of City Government and includes all
of City Government except the City Council and the Municipal Judge.
INTERNAL AUDITOR
A person or firm employed by or contracted with by the City
for the purpose of providing internal audit services and who reports
directly to and is exclusively under the control and supervision of
the City Council.
D. Duties And Responsibilities. The Audit
Committee's responsibilities shall include:
1.
Periodically review this Section
and assess its adequacy and recommend changes to the City Council.
2.
Meet at least three (3) times per
year, and at additional times when necessary. Request members of City
management or others to attend meetings and provide pertinent information.
3.
Conduct executive sessions with the
Mayor, Director of Administration, City Attorney, internal auditor,
independent financial statement auditor, Finance Director, Municipal
Judge and anyone else as determined necessary by the Audit Committee.
4.
Advise the City Council on the hiring
of professional consultants and auditors as necessary and in accordance
with the City's procurement ordinance.
5.
Review and advise the City Council
on the appointment, replacement, or dismissal of the internal auditor.
6.
Oversee the appointment for the City
Council of the independent financial statement auditor.
7.
Advise the City Council on the establishment
of a regular schedule for periodically rebidding the independent financial
statement audit contract.
8.
Inquire of City management, the internal
auditor, and the independent financial statement auditor about significant
financial risks or exposures and advise the City Council as appropriate.
9.
Review with the independent financial
statement auditor, the Finance Director and internal auditor the scope
and plan of the internal auditor and independent auditor. Assess the
coordination of audit efforts to assure the completeness of coverage,
reduction of redundant efforts, and the effective use of audit resources.
10.
Review and approve with City management
and the internal auditor and advise the City Council on the following:
a.
Internal audit charter, budget, staffing
and audit plan at project initiation;
b.
Significant findings on internal
audits during the year and City management's responses;
c.
Any difficulties the internal auditor
encountered in the course of an audit, including any restrictions
on the scope of their work or access to required information; and
d.
Any changes required in the scope
of internal audits.
11.
Inquire of City management regarding
the City's fiscal condition and financial status in relation to the
budget and report as appropriate to the City Council.
12.
Review with the independent auditor
and the internal auditor and advise the City Council on:
a.
Adequacy of internal controls; and
b.
Any related significant findings
and recommendations of the independent auditor and internal auditor
together with City management's responses.
13.
Review with City management and the
independent financial statement auditor and advise the City Council
on the effect of any regulatory and accounting initiatives.
14.
Review with the independent financial
statement auditor and advise the City Council on:
a.
Critical accounting policies and
practices;
b.
Significant accounting and reporting
issues, including complex or unusual transactions and highly judgmental
areas, and recent professional and regulatory pronouncements, and
their impact on the financial statements;
c.
Alternative treatments of financial
information within generally accepted accounting principles that have
been discussed with City management, the ramifications of each alternative,
and the treatment preferred by the City.
15.
Review significant written communications
between the independent financial statement auditor and City management,
such as any management letter or schedule of unadjusted differences
and advise the City Council as appropriate.
16.
Review with City management and the
independent financial statement auditor and advise the City Council
regarding:
a.
City's annual financial statements,
related footnotes, and management's discussion and analysis;
b.
Financial statement audit and report;
c.
Independent financial statement auditor
judgments about the quality of the City's accounting principles;
d.
Audit report of Federal awards administered
by the City;
e.
Any significant changes required
in the audit plan;
f.
Any serious difficulties or disputes
with City management encountered during the audit; and
g.
Matters required to be communicated
in accordance with generally accepted auditing standards, U.S. Government
Auditing Standards and OMB Circular A-133 related to the conduct of
audits.
17.
Review with the City Attorney and
the internal auditor legal and regulatory matters that, in the opinion
of City management or the Audit Committee, may have a material impact
on the financial statements and compliance with Federal, State, or
local laws and regulations and advise the City Council.
18.
Review with the City Attorney elected
official and employee compliance with City and State conflicts of
interest laws.
[Ord. No. 15-157 § 1, 7-21-2015]
19.
Periodically review the City's Code
of Ethics.
20.
Review the findings of any examinations
by regulatory agencies and any auditor observations.
21.
Review the procedures for the receipt,
retention, and treatment of complaints received by the City regarding
suspected fraud that may be submitted by any party internal or external
to the City.
22.
Review any suspected fraud complaints
that might have been received, current status, and resolution and
advise the City Council as appropriate.
23.
Evaluate the performance of the independent
financial statement auditor and the internal auditor and advise the
City Council.
24.
Confirm annually that all responsibilities
outlined in this Section have been carried out.
25.
Evaluate the Audit Committee's performance
on a regular basis.
26.
Create an agenda for the ensuing
year.