HomeMy WebLinkAbout22 ANN'L INDEP AUDIT 08-01-94DATE: JULY 25, 1994
NO. 22
8-i-94
Inter-eom
TO:
FROM:
SUBJE¢~
WILLIAM A. HUSTON, CITY MANAGER
LOIS E. JEFFREY, CITY ATTORNEY
ORDINANCE REQUIRING THAT PROPOSALS FOR THE
ANNUAL INDEPENDENT AUDIT BE REQUESTED AT
Enclosed for the consideration of the City Council is a
proposed ordinance that would require that proposals for the annual
independent audit be requested at least five years. The ordinance
was requested by Mayor Pro Tem Potts.
During the preparation of this ordinance, we noticed that the
City does not require an annual outside audit either by ordinance
or by resolution. However, it is the City's practice to require
such an audit in order to maintain its credit rating. Since it is
the City's desire to continue this practice, we have provided for
the annual audit in this ordinance.
The Audit Committee has developed guidelines for requests for
proposals for the annual audit. The guidelines place the emphasis
on selecting the firm that is most qualified, and then negotiating
a fair and reasonable price. Ron Nault, the Finance Director, can
provide more information on this process to the City Council.
LEJ:cas:D:OT/Z6/94:(T55)
Enclosure
cc: Ron Nault,
Finance Director
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ORDINANCE NO. 1135
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF TUSTIN, CALIFORNIA, RELATING TO AN ANNUAL
INDEPENDENT AUDIT
The City Council of the City of Tustin, California, hereby
ordains as follows:
Section 1.
Purpose
The purpose of this Ordinance is to memorialize the City's
practice of having an audit prepared each year by an independent
auditor and to require that proposals from potential auditors be
solicited at least every five (5) years.
Section 2.
Part 3 is hereby added to Chapter 6 of Article 1 of the Tustin
City Code to read as follows:
PART 3 AUDIT
1631
ANNUAL INDEPENDENT AUDIT
Each fiscal year the Finance Director shall cause to
be prepared by an independent auditor, an audit of the
financial statements, books, records and accounts of the
previous fiscal year.
1632
REQUESTS FOR PROPOSALS
Requests for proposals for independent auditors
shall be solicited at least every five (5) years.
Requests for proposals and the selection of the
independent auditor shall follow guidelines developed by
the Audit Committee and such other criteria as may be
recommended from time to time by the Finance Director.
Section 3.
Severability.
If any sentence, clause, phrase, or portion of this Ordinance,
is for any reason held to be invalid or unconstitutional by the
decision of any court of competent jurisdiction, such decision
shall not affect the validity of the remaining portions of this
Ordinance. The City Council of the City of Tustin hereby declare
that they would have adopted this Ordinance, and each section,
subsection, subdivision, sentence, clause, phrase, or portion
thereof, irrespective of the fact that any one or more sections
subsections, subdivisions, sentences, clauses, phrases, or portio
thereof be declared invalid or unconstitutional.
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Ordinance No. 1135
Page 2
PASSED AND ADOPTED, at a
for the City of Tustin on this
ATTEST:
MARY E. WYNN, City Clerk
regular meeting of the city Council
day of , 1994.
THOMAS R. SALTARELLI, Mayor