[HISTORY: Adopted by the City Council of the City of Warren 4-15-2013 by Ord. No. 1826. Amendments noted where applicable.]
The purpose of the Finance Committee is to provide independent fiscal oversight, which includes budgeting and financial planning, financial reporting, and the creation and monitoring of internal controls and accountability policies. In addition, the Committee is to oversee the selection of independent auditors and is to provide a forum separate from management in which auditors and other interested parties may candidly discuss concerns.
The Finance Committee shall be composed of three members appointed by a majority of Council, at least one of which must be a member of City Council, and all three of which should have a basic understanding of governmental financial reporting and auditing.
If possible, at least one member of the Finance Committee shall, through education and/or experience, possess an understanding of generally accepted accounting principles (GAAP) and financial statements; have experience in preparing or auditing financial statements relevant to the government sector; possess experience in applying GAAP in connection with accounting for estimates, accruals and reserves; have experience with internal accounting controls; and have an understanding of Finance Committee functions.
The term of any Council member shall be for one year, expiring on December 31 of each year, and the terms of the remaining members shall be for three years, expiring on December 31, or until their successors are appointed and qualified.
Any committee member who is absent without prior permission from the Chair for more than two meetings in any one-year period shall be considered no longer active, and the position shall be deemed vacant. In such event, a new member shall be appointed by Council to complete the vacated term.
Two members shall constitute a quorum. The Committee shall establish rules for its meetings and shall meet at least quarterly, including the following:
The Committee shall also meet at such other times as it deems necessary.
The Committee shall be responsible to:
Provide direction for Council regarding fiscal responsibility.
Regularly review the City's revenues and expenditures, balance sheet, investments and other matters related to the City's continued solvency.
Assist in the development of and approve the annual budget and submit it to Council for approval.
Ensure the maintenance of an appropriate capital structure.
Oversee the maintenance of City assets, including prudent management of investments.
Ensure that policies and procedures for financial transactions are documented, reviewed and updated as necessary, and ensure that such policies are being followed.
Recommend to Council an independent firm of certified public accountants qualified to perform the annual audit of the City.
Analyze and report to Council significant findings in the annual audit report and make recommendations regarding such findings.
Review component unit information as necessary in relation to the City's annual financial report and make recommendations to Council.
Perform similar duties for the City's pension committees, if requested to do so by such committees.
The Committee shall submit copies of the minutes of its meetings to City Council. Reports or recommendations of the Committee shall be considered advisory in nature and shall not be considered binding on the Mayor or City Council or on any of the City's pension committees.