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Review significant accounting and reporting issues, including
complex or unusual transactions and highly judgmental areas, and recent
professional and regulatory pronouncements, and understand their impact
on the financial statements.
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Review with City management and the external auditors the results
of the audit, including any difficulties encountered.
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Review the annual financial statements, and consider whether
they are complete, consistent with information known to Committee
members, and reflect appropriate accounting principles.
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Review other sections of the annual report and related regulatory
filings before release, and consider the accuracy and completeness
of the information.
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Review with City management and the external auditors all matters
required to be communicated to the Committee under Generally Accepted
Auditing Standards (GAAS).
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Understand how City management develops interim financial information
and the nature and extent of internal and external auditor involvement.
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Review interim financial reports with City management and the
external auditors before reports are filed with regulators, and consider
whether they are complete and consistent with the information known
to Committee members.
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Consider the effectiveness of the City's internal control system,
including information technology security and control.
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Understand the scope of internal and external auditors' review
of internal control over financial reporting, and obtain reports on
significant findings and recommendations, together with City management's
responses. GAAS and Government Auditing Standards (GAS) require an
independent auditor to evaluate the City's internal controls in connection
with determining the extent of their audit procedures.
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Periodically review with City management and the Internal Auditor
the charter, activities, and structure of the internal audit function.
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Have final authority to review and approve a risk-based annual
audit plan and all major changes to the plan, and regularly review
progress implementing the plan.
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Ensure there are no unjustified restrictions or limitations,
and review and concur in the appointment, replacement, or dismissal
of the Internal Auditor.
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Review the effectiveness of the internal audit function, including
compliance with The Institute of Internal Auditors' (IIA) International
Professional Practices Framework (IPPF) for Internal Auditing consisting
of the Definition of Internal Auditing, Code of Ethics and the Standards.
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Direct the internal auditor to conduct internal control audits
to address processes and controls and performance audits to address
economy, efficiency, and effectiveness, and ensure work is performed
under the proper standards, which include the IIA's IPPF and the GAO's
Generally Accepted Government Audit Standards (GAGAS).
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On a regular basis, meet with the Internal Auditor to discuss
matters that the Committee or Internal Auditor believes should be
discussed privately.
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Direct management to prepare implementation plans to respond
to audit findings and recommendations and receive reports from management
on implementation progress.
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Review the external auditors' proposed audit scope and approach,
including coordination of audit effort with internal audit.
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Review the performance of the external auditors, and exercise
final approval on the appointment, replacement, or dismissal of the
auditors.
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Review and confirm the independence of the external auditors
by obtaining statements from the auditors on relationships between
the auditors and the City, including non-audit services, and discussing
the relationships with the auditors.
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On a regular basis, meet with the external auditors to discuss
matters that the Committee or auditors believe should be discussed
privately.
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Direct management to prepare implementation plans to respond
to audit findings and receive reports from management on implementation
progress.
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Review the effectiveness of the system for monitoring compliance
with laws and regulations and the results of City management's investigation
and follow-up (including disciplinary action) of any instances of
noncompliance.
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Review the findings of any examinations by regulatory agencies
and any auditor observations.
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Review the process for communicating the code of conduct to
City personnel and monitoring compliance therewith.
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Obtain regular updates from City management, City Attorney,
Internal Auditor, and external auditors regarding compliance matters.
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Regularly review City responses to audit findings as tracked
in the Audit Findings Response Tracking Report, which will be updated
on an ongoing basis by the Internal Auditor with input from City management.
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Regularly report to the City Council about Committee activities,
issues, related recommendations, and how it has discharged its duties
and met its responsibilities.
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Provide an open channel of communication between the Internal
Auditor, the external auditors, and the City Council.
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Review any other reports the City issues that relate to Committee
responsibilities.
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Perform other activities related to this charter as requested
by the City Council.
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Establish procedures for the receipt, retention, and treatment
of complaints regarding accounting, internal accounting controls,
or auditing matters.
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Institute and oversee special investigations as needed.
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Review and assess the adequacy of the Committee charter annually,
requesting Council approval for proposed changes, and ensure appropriate
disclosure as may be required by law or regulation.
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Confirm annually that all responsibilities outlined in this
charter have been carried out.
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Evaluate the Committee's and individual members' performance
on a regular basis.
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