[Adopted 11-10-1998]
An Audit Committee is hereby established.
The Committee established pursuant to § 5-123 of this article shall consist of five persons, who shall serve without compensation. The five members shall be as follows: three members of the Town Council and two electors of the Town who shall have experience or expertise in fiscal matters.
The terms of office of the Council members shall
be two years, coterminous with their terms of office. The terms of
office for the two electors shall be for a period of five years and
may be reappointed for a second five-year term.
The Committee shall recommend to the Town Council
the engagement and/or removal of an independent auditor to perform
the annual audit of Town and Board of Education finances; make recommendations
to the Town Council regarding the scope of the audit, identifying
areas of risk and additional procedures to be performed; review the
results of each independent audit, including any qualifications to
the auditor's opinion and any management letters; request and review
any responses by the administration to the audit and/or management
letter; review the annual financial statements of the Town and the
Board of Education, including any disagreements between the Town and/or
Board of Education and the independent auditor arising out of the
preparation of those financial statements; study the adequacy of internal
financial controls and recommend such changes in procedures as are
appropriate to ensure that the financial statements of the Town and
the Board of Education are presented fairly in compliance with generally
accepted accounting principles; review and recommend to the Town Council
any appropriate alterations to auditing and accounting principles,
practices and procedures to be followed when preparing financial statements;
meet with the Board of Education or its representatives to discuss
possible alterations to auditing and accounting principles, practices
and procedures which might be appropriate in connection with the operations
of the Board of Education; and meet periodically with the administration
of the Town and the Board of Education to review major financial risk
exposures.
At the first meeting of the Committee and annually
at the first meeting after January 1 of each year, the Committee shall
elect from its own members a Chair, Vice Chair and Secretary.
