HomeMy WebLinkAboutCC 10 AUDIT COMM RESPON 5-16-88DATE: ~Y 11, 1988
CONSENT CALENDAR
5'-16-88
Inter- Corn
TO:
FROM:
SUBJECT:
WIlliaM A. HUS~ON, CITY NANAGER
RO~. NAU?.~.-DIRECTOR OF FINANCE
RESOLUTION 88-52 ESTABLISHING. RESPONSIBILITIES OF
THE AUDIT COMMITTEE
RECO~NDATION=
Adopt Resolution 88-52 establishing the responsibilities of the
Audit Committee and creating the Alternate Committee Member.
BACKGROUND:
At it's meeting of May 2, the City Council adopted the-Audit
Committee Members. At the same time they appointed an alternate
member contingent upon the adoption of an amended resolution to
create the Alternate Committee Member. The attached Resolution
88-52, creates the Alternate Member and establishes their
responsibilities.
RAN:IS
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
RESOLUTION NO. 88-52
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF TUSTIN, CALIFORNIA,
CREATING THE CITY OF TUSTIN AUDIT
COMMITTEE AND ESTABLISHING TBE
RESPONSIBILITIES OF THE AUDIT
COMMITTEE.
The City Council of the City of Tustin does hereby
resolve as follows:
WHEREAS, the City Council of the City of Tustin
recognizes the importance of the City's Annual Financial
Report and the role of the independent auditor; and
WHEREAS, the City Council of the City of Tustin has
determined that citizen participation in the audit process
would provide additional assurance that.the quality of the
audit and Annual Financial Reports will remain high; and
WHEREAS, the City Council of the City of Tustin sees an
independent Audit Committee-as a means of providing the
citizens of the City an opportun%ty to participate in this
important process.
NOW, THEREFORE, the City Council of the City of Tustin
does hereby create the City of Tustin Audit Committee. The
Audit Committee shall consist of three private citizens,
selected at large, who will serve two year, staggered terms,
subject to service at the pleasure of the City Council. At
least two members of the Committee shall at all times be
residents of the City of Tustin. One member may be a
resident of the service area of the Tustin Water Department.
The City Council may also appoint an alternate member to
serve on the Committee. The alternate member shall attend
meetings of the Committee and act in place of a regular
Committee member who is absent from the meeting. Committee
members (including the alternate member) shall be
compensated at the rate of Fifty Dollars ($50.00) per
Committee meeting which they attend.
The responsibilities of the Audit Committee shall be as
follows:
1. Review and advise on the selection of external
auditors;
2. Review and advise on the scope of the audit;
3. Review and advise on any accounting issues which
may arise during the audit;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
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
day of , 1988.
MAYOR
ATTEST:
CITY CLERK
JGR:ARW:D:05/10/88(737)