[HISTORY: Adopted by the Mayor and Council of the Borough of Madison 12-9-2013 by Ord. No. 47-2013. Amendments noted where applicable.]
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:
To make recommendations to the Mayor and Council regarding records and recordkeeping procedures.
The Committee will review the financial reporting and disclosure process.
The Committee will monitor accounting policies and principles.
The Committee will recommend the hiring of an auditor with the consent of the Mayor and Council.
The Committee will evaluate the performance and independence of external auditors.
The Committee will discuss risk management policies and practices with the CFO, Borough Administrator, and the Assistant Borough Administrator.
The Committee will review the auditor’s findings and recommendations and ensure that timely action is taken to remediate any material issues mentioned.
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:
One Finance Chairperson or Co-Chairperson member of the Council.
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.
The CFO, Borough Administrator and Assistant Borough Administrator shall be ex-officio members of the Committee.
The Council Finance Chairperson or Co-Chairperson shall serve annually.
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.
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.