R10901City Council Meeting: July 28, 2015
Santa Monica, California
RESOLUTION NUMBER 10 7c) 1 (CCS)
(City Council Series)
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF SANTA MONICA ESTABLISHING AN AUDIT COMMITTEE
WHEREAS, the City Council of the City of Santa Monica (the "City Council ")
recognizes the importance of transparency and accountability in the administration of
public resources, and the City Council is ultimately responsible for ensuring that the City
of Santa Monica (the "City ") is meeting its internal control and financial reporting
responsibilities; and
WHEREAS, the City Council recognizes the importance of creating an Audit
Subcommittee of the City Council ( "Audit Committee ") as it is considered a financial
management best practice; and
WHEREAS, formation of an Audit Committee will ensure regular and direct
communication between the City's independent auditors and the City Council and will
further the City Council's goals of transparency and accountability in the administration
of public resources; and
WHEREAS, on March 17, 2015, the City Council voted to establish an Audit
Committee; and
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WHEREAS, on July 14, 2015, the City Council determined that the Audit
Committee should consist of three Council members and two City residents with
relevant expertise to be selected through a public process.
WHEREAS, the City Council now desires to establish an Audit Committee.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA
DOES RESOLVE AS FOLLOWS:
SECTION 1. The City Council of the City of Santa Monica hereby establishes an
Audit Subcommittee of the City Council to assist the City Council in fulfilling their
oversight responsibilities for the financial reporting process, the framework for internal
control, and the audit process.
SECTION 2. The Audit Committee will consist of three members, of the City
Council and two City residents who shall be appointed by the City Council through a
public process and qualified to serve by virtue of their experience and expertise with
governmental accounting and internal financial controls. The members of the Audit
Committee shall be appointed by the City Council to staggered four -year terms. To
establish staggered terms, the initial members of the Audit Committee shall be
appointed so that two Council members and one public member serve four -year terms
and one Council member and one public member serve two -year terms. Thereafter all
members shall be appointed to serve four -year terms. All three Council Committee
members must be present for a meeting to occur.
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SECTION 3. The Audit Committee shall meet a minimum of three times
annually.
SECTION 4. The Finance Director, or his or her designee, and the City
Attorney, or his or her designee, will attend all Audit Committee meetings and will
implement Audit Committee directives as needed, reporting back on recommendations.
SECTION 5. Each year at its first meeting, the committee will elect a
chairperson. Meeting agendas will be prepared by the chairperson in consultation with
the Finance Director.
SECTION 6. The duties and responsibilities of the Audit Committee include but
are not limited to:
(a) Review, upon completion, all City audit reports,
analyze all findings in audit report(s) and consult with
the external and internal auditors regarding any
irregularities and deficiencies disclosed in their reports;
(b) Determine what corrective action, if any, should be
recommended to the City Council;
(c) Report to the City Council on the outcome of all audits,
on any audit finding, and on any other pertinent
communications, and
recommendations;
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make appropriate
(d) Ensure that timely and appropriate action has been
taken in response to City Council directions arising
from audit reports.
(e) Consider the effectiveness of the framework for
internal control, review the effectiveness of the
systems for monitoring compliance with laws and
regulations, and review the processes for
communicating the City's compliance policies to City
personnel and monitoring compliance therewith.
(f) Provide an alternative way for employees, taxpayers,
or other citizens to confidentially report suspected
illegal, improper, wasteful or fraudulent activity.
(g) Provide oversight of the periodic review and selection
of external and internal auditors including, but not
limited to, reviewing proposals and making
recommendations.
SECTION 7. The City Clerk shall certify to the adoption of this Resolution, and
thenceforth and thereafter the same shall be in full force and effect.
APPROVED AS TO FORM:
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Adopted and approved this 28th day of July, 2015.
"."). a-v,
Kevin McKeown, Mayor
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10901 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 28th day of June, 2015, by the following vote:
AYES: Councilmembers: Davis, Himmelrich, Winterer, O'Connor
Mayor McKeown, Mayor Pro Tern Vazquez
NOES: Councilmember: None
ABSENT: Councilmember: O'Day
ATTEST:
�n�G�1n
Sarah P. Gorman, City Clerk