R10897City Council Meeting: July 14, 2015
Santa Monica, California
RESOLUTION NUMBER 01 (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, 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 (3) members, to be
comprised of members of the City Council. The members of the Audit Committee shall
be appointed by the City Council to staggered four (4) -year terms. To establish
staggered terms, the initial members of the Audit Committee shall be appointed so that
two (2) members serve four (4) -year terms and one (1) member serves a two (2) -year
term. Thereafter all members shall be appointed to serve four (4) -year terms. All Audit
Committee members must be present for a meeting to occur.
SECTION 3. 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 4. 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.
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SECTION 5. The Audit Committee shall meet a minimum of three (3) times
annually. The City's internal and external auditors will provide audit reports to the Audit
Committee. The Audit Committee may elect to make a presentation to the Council
advising the Council on the outcome of the audit, any audit findings, or any other
pertinent communications.
SECTION 5. The duties and responsibilities of the Audit Committee include but
are not limited to:
(a) Review, upon completion of the City's annual audit, all
findings in audit report(s) and consult with the external
auditors regarding any irregularities and deficiencies
disclosed in the annual audit. The Audit Committee
should determine what corrective action, if any, should
be recommended to the City Council and, once
Council has provided direction, ensure timely and
appropriate action has been taken.
(b) 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.
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(c) Provide an alternative way for employees, taxpayers,
or other citizens to confidentially report suspected
illegal, improper, wasteful or fraudulent activity.
(d) Provide oversight for the periodic review and selection
of external and internal auditors.
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 14th day of July, 2015.
Kevin UcKeown, Mayor
I, Sarah P. Gorman, City Clerk of the City of Santa Monica, do hereby certify that
the foregoing Resolution No. 10897 (CCS) was duly adopted at a meeting of the Santa
Monica City Council held on the 14th day of July, 2015, by the following vote:
AYES: Councilmembers Davis, Himmelrich, O'Day, O'Connor, Winterer
Mayor Pro Tem Vazquez, Mayor McKeown
NOES: None
ABSENT: None
ATTEST:
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Sarah P. Gorman, City Clerk