HomeMy WebLinkAboutO.B. 02 AUDIT COMM 06-15-92OLD BUSINESS NO. 2
AGENDA
6/15/92
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ATF: JUNE 10 , 1992 f ,
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: WILLIAM A. HUSTON, CITY 11ANAGER
SUBJECT: AUDIT COMMITTEE
At its June 1, 1992 meeting, the City Council discussed the possibility
of modifying the terms for members of the Audit Committee. The City
Council will be conducting interviews before the June 1 meeting to fill
the vacancy on the Audit Committee, the term of which expires July 17,
1995.
The terms of the remaining Audit Committee members are as follows:
George Jeffries
July
17, 1995
Frank Greinke
July
19, 1993
Walt Sullens
July
19, 1993
Jerry Weil
July
19, 1993
Ordinance No. 1023, a copy of which is attached, establishes the
qualifications of the Audit Committee. Section 1538 of the.Ordinance
requires that the current vacancy on the Audit Committee shall be filled
by a registered voter of the City.
The City Council has the prerogative to modify the terms for the Audit
Committee by amending Ordinance No. 1023. Since it is a policy matter,
there are no limitations on how the City Council could modify terms, if
it so desires.
The City Council also asked for a clarification concerning the duties of
the Audit Committee. Resolution No. 88-52 (copy attached) delineates
the duties of the Audit Committee. Resolution No. 88-52 created the
Audit Committee. The City Council subsequently decided to codify the
Audit Committee by adopting Ordinance No. 1022 (copy attached).
Ordinance No. 1023, referred -to abcve, amended the section of Ordinance
No. 1022 which sets forth the qualifications for membership on the Audit
Committee. Resolution No. 88-52 remains in effect concerning the duties
of the Audit Committee. Also attached is a copy of the Audit
Committee's last report to the City Council which transmitted the City's
annual financial report and described the Audit Committee's other
activities pursuant to Resolution No. 88-52. The annual joint meeting
of the City Council and Audit Committee has afforded the opportunity to
discuss the Audit Committee's work and provide any further policy
direction from the City Council.
WAH
auditcmt.wah
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ORDINANCE NO. 1023
ORDINANCE FOR THE CITY COUNCIL, CITY OF TUSTIN,
CALIFORNIA, AMENDING THE TUSTIN CITY CODE
REGARDING THE AUDIT COMMITTEE
The City Council of the City of Tustin does hereby ORDAIN as
follows:
1. Section 1538 of the Tustin City Code is hereby amended
to read as f ollows:
"1538 MEMBERS AND QUALIFICATIONS
The Audit Committee shall consist of five (5) members,
four (4) of whom shall be registered voters of the City
during all times they hold office and one (1) who shall
be a registered voter within the area served by the
Tustin Water Department. Provided, however, that each of
the persons heretofore appointed to the Audit Committee
may continue to serve without compliance with the
foregoing, so long as they are (1) a registered voter of
the City; (2) a registered voter within the area served
by the Tustin Water Department; or (3) the owner of a
business in the City."
PASSED AND ADOPTED at a regular meeting of the City Council,
City of Tustin, California, held on the 5th day of June ,
1989.
Mayor
ATTEST:
Mary Wy
City Cl
+JGR:pj (A1)
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ORDINANCE NO. 1022
ORDINANCE FOR THE CITY COUNCIL,
CITY OF.TUSTIN, CALIFORNIA, AMENDING
THE TUSTIN CITY CODE TO'ESTABLISH
THE AUDIT COMMITTEE
The City Council of the City of Tustin does hereb
ordain as follows:• Y
1. The Tustin City Code is hereby amended by the
addition thereto of Part 4 of Chapter 5, Sections 1537, 1538
and 1539, to read as follows:
Part 4 AUDIT COMMITTEE
153:' ESTABLISHMENT OF Tf[E AUDIT COt"I�MITTEE
The Audit Committee of the City of Tustin is
hereby established with composition, jurisd_ction,
duties, terms of office, compensation and other
characteristics as specified in this Parte. The
Audit Committee shall perform duties of oversight,
review, investigation and reporting and shall
provide recommendations to the City Council on
matters of finance, investments and audit as shall
be prescribed by the City Council. from "me to
time. Compensation of the members of - the Audit
Committee shall be as prescribed by the City
Council from time to time.
1538 MEMBERS AND QUALIFICATIONS
The Audit Committee shall consist of five ( 5 )
members, four (4) of whom shall be registered
voters of the City during all times then hold
office and one (1) who shall:be a registered voter
within the area served by the Tustin Water
Department. Provided, however that the *persons
heretofore appointed to the Audit Commitee may
continue to serve without compliance with the
foregoing, so long as they comply with- the
conditions in effect at thetime of their
appointment.
1539 APPOINTMENT AND TERMS
Members of the Audit Committee shall be appointed
by the City Council. Two (2). of the first
appointed members shall serve from 'the t_me of
their appointment until the second regular greeting
of the City Council. in February, 1992, and three
(3 ) of the first appointed membe�-.s shall serve
from the time of their appointment unti? the
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Ordinance No. 1022
.Page Two
second regular :.ieeting of the City Council in
February, 1993. The term of each'of those offices
shall thereafter be for four (4) years, commencing
on the expiration date of each office as provided
hereinabove.
All members of t. -.e Audit Committee shall serve at
the pleasure of the. City Council and may be
removed upon mot -fon of the City Council adopted by
at least three (?) affirmative votes. All members
of the Audit Committee shall serve until their
respectivc successors are appointed and qualified.
2. The following persons are hereby appointed as the first
-members of the Audit Committee:
Cheryl
5
to
serve until
R• Y_
. 6
,meeting
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the
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Co::nc41
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1992;
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serve until
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regular
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of
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City
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in February,
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Ordinance No. 1022
.Page Two
second regular :.ieeting of the City Council in
February, 1993. The term of each'of those offices
shall thereafter be for four (4) years, commencing
on the expiration date of each office as provided
hereinabove.
All members of t. -.e Audit Committee shall serve at
the pleasure of the. City Council and may be
removed upon mot -fon of the City Council adopted by
at least three (?) affirmative votes. All members
of the Audit Committee shall serve until their
respectivc successors are appointed and qualified.
2. The following persons are hereby appointed as the first
-members of the Audit Committee:
Cheryl
Gunderson*
to
serve until
the -second
regular
,meeting
of
the
City
Co::nc41
in February,
1992;
George
Jeffries
to
serve until
the second
regular
.meeting
of
the
City
Co-ncil
in February,
1992;
Walt Sullins
to
serve until
the second
regular
meeting
of
the
City
C&_,nci l
in February,
1993;
Frank
Greinke
, to
serve until
the second
regular
meeting
of
the
City
Council
in February,
1993;
Jerry
Neil
to
serve until
the second
regular
meeting
of
the
City
Council
in -February,
1993.
3. The compensation for each member of the Audit Committee
shall be Fifty Dollars ($50.00) for each meeting attended.
Compensation mav;be changed and/or deleted from time to time
by the City Council.'
PASSED AND ADOPTED at a regular meeting of the City
Council, City of Tustin, California, held on the 20th
day of - March , 1959.
C C CIC
'
ATTEST: MAYOR
Mary W
City C1 k
'JGR:rr: R:3/13/89 (10a. sh:, (1-2 )
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1 88-52
RESOLUTION NO.
2
3 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF TUSTIN, CALIFORNIn,
4 CREATING THE CITY OF TUSTIN AUD:T
COMMITTEE AND ESTABLISHING THE
5 RESPONSIBILITIES OF THE AUD:T
COMMITTEE.
6
7 The City Council of the City of Tustin does hereby
resolve as follows:
8
WHE.REAS, the City Council of the City of Tustin
9 recognizes the. importance of the City' s A-nnual Financial
Report and the role of the independent auditor; and
lO WHEREAS, the City Council of the City of Tustin has
11 determined that citizen participation in t'ne audit process
would provide. additional assurance that • the quality of the
12 audit and . Annual Financial Reports will remain high; and
13 WHA, the City Council of the City c= Tustin sees an
Tovidin the
independent Audit Committee -as a means c=.p_ 9
14 citizens of the City an opportunity to participate in this
important process.
15
Now, THEREFORE, the City Council of the City of Tustin
16 does hereby create the City of Tustin Audit Committee. The
Audit Committee shall consist of three private citizens,
17 selected at large, who will serve two year, staggered terms,
subject to service at the pleasure of the City Council. At
18 least two members of the Committee shall at all times be
residents of the City of Tustin. One =ember may be a
19 resident of the service area of the Tustin hater Department.
The City Council may also appoint an alternate member to
20 serve on the Committee. The alternate member shall attend
meetings -of the Committee and act in-place of a regular
21 Committee member who is absent from the meeting. Committee
members ( including the alternate me=be r ) shall be
22 compensated at the rate of Fifty Dollars ($50.00) per
Committee meeting which they attend.
23
The responsibilities of the Audit Committee shall be as
24follows:
25 1. Review and advise on. the selection of external
auditors;
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2. Review and advise on the scope of =he audit;
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3. Review and advise on any accoun:_nc issues which
28 may arise during the audit;
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4. Review and comment on the progress of the external
audit;
5. Review, evaluate and comment on the City's.
Financial Statements and on the Auditor's Report;
6. Review and evaluate the Auditor's Management Letter
and management's response thereto, including the adequacy of
management's attention to correction action;
7. Inquire into and obtain answers to any issue or
item in question included in the Financial Statements;
8. Maintain a public record of its proceedings and
report to the City Council at least annually.
PASSED AND ADOPTED at a regular meeting of the City
Council of the City of Tustin, California, held on the
16th--- h day of May , 1988.
ATTEST:
:.✓�.• t c.l ....---
CITY C{ RK
JGR:ARW:D:05/10/88(737)
MAYOR
Inter -Corgi
ATE:
JANUARY 13, 1992
HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
TO:
GEORGE W. JEFFRIES, AUDIT COMMITTEE CHAIRMAN
FROM:
ANNUAL REPORT OF THE AUDIT COMMITTEE AND SUBMITTAL OF THE CITY
SUBJECT: OF TUSTIN'S COMPREHENSIVE ANNUAL FINANCIAL REPORT DATED JUNE
30, 1991
Committee reports completion of duties as listed in Resolution No.
88-52. Other activities included:
1. Audit review of legal opinion letters and setting of
proper reserves - result was a change in language
representing City's liability exposure in certain claims
to auditors.
2. Reviewed Finance Department's 1991 Internal Control
Checklist. Discussed same with auditor; review
satisfactory.
3. Discussed' Fixed Asset Accounting Policy. Result was
recommendation to conduct periodic inventories and begin
tagging non -expendable assets beginning fiscal year 1991-
1992.
4. Discussed Sales Tax receipts and budget impact, noting
conservative estimates in use over 11 years of schedules.
5. Discussed Water Conservation Program and financial
impact, concurring in formation of independent appeals
board but wishing to monitor results.
6. Indicated interest in financial impact involvement for
Marine Base sale and annexation proposals.
7. Reviewed Investment Policy, suggesting modest changes for
consistency and ease of operation while reflecting
deteriorating economic conditions.
8. Monitored progress on Hamblin case and Farmer's Bank (CD)
problem.
9. Noted with pleasure the Government Finance Officers
Association (GFOA) commendation on financial reporting to
Finance Director Nault.
Page 2
Honorable Mayor and Members of Council
January 13, 1992
Based upon auditor's reports and our observations, we consider cash
and property controls in good order.
Plans for 1992 include continuing reviews of cash reserves and
investment policies as well as responding to councilmanic requests
above our Resolution No. 88-52 duties.
Respectfully submitted,
George W Jeffrie irman �*
RAN: GJ: 1s
Attachment
a: amua 191. rpt
Intel 0M
.TE: DECEMBER 6, 1991
TO: GEORJ=LT,
AUDIT COMMITTEE CHAIRMAN
FROM: RONA,DIRECTOR OF FINANCE
SUBJECT: COMMIVrEE DISCUSSIONS DURING PAST YEAR
Some items that the Committee discussed during the past year:
1'. Audit Legal Opinion Letters and setting of proper reserves.
Major result was a change in language used by City Attorney in
representing City's liability exposure on certain claims to
the auditors.
2. The Committee reviewed the Finance Departments 1991 Internal
Control Checklist. Results of that review were discussed with
the auditor at a regular meeting.
3. Discussed City's Fixed Asset Accounting Policy. Result was
the Committee's recommendation that the City conduct periodic
inventories and begin tagging non -expendable assets beginning
with fiscal 91/92.
4. Discussed the impact of Sales Tax on the City budget.
Reviewed an eleven year Sales Tax Schedule. Committee will
continue to monitor as new information develops.
5. The Committee discussed the current City Water Conservation
Program and its potential impact on future City finances.
They agreed that an independent appeals board was appropriate
and felt that the Audit Committee will simply monitor the
program.
That's the more salient points I came up with George.
RAN: 1s
a:audcom.91