SR 03-27-2018 3B
City Council
Report
City Council Meeting: March 27, 2018
Agenda Item: 3.B
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To: Mayor and City Council
From: Gigi Decavalles-Hughes, Director, Finance Department
Subject: Amendment to the Resolution Adopting Rules of Conduct for the Audit
Subcommittee
Recommended Action
Staff recommends that the City Council adopt the attached resolution modifying the
Audit Subcommittee Rules of Conduct.
Executive Summary
On June 27, 2017, Council adopted Resolution No. 11046 adopting modified Rules of
Conduct for the Audit Subcommittee of the Santa Monica City Council. The modified
rules required that in addition to a quorum, two Council Committee members must be
present in order for a meeting to occur. At the February 28, 2018 Audit Subcommittee
meeting, staff presented a second amendment to the Rules of Conduct (Attachment A)
for Subcommittee consideration. In order for Subcommittee business to move forward
in a timely manner, the proposed Rules would require that only one Council Committee
member be present for a meeting to occur.
Background
On July 28, 2015, Council adopted a resolution establishing an Audit Subcommittee to
assist the City Council in fulfilling their oversight responsibilities for the financial
reporting process, the framework for internal control, and the audit process. On May 9,
2017, Council approved the establishment of an ad hoc compensation study advisory
committee to take part in Audit Subcommittee discussions on a citywide compensation
study being conducted by Moss Adams, LLP, the City’s Internal Auditor. At its June 27,
2017 meeting, the City Council adopted Resolution No. 11046 adopting modified Rules
of Conduct for the Audit Subcommittee of the City Council. Section 2 of the modified
resolution states that “A majority of Committee Members shall constitute a quorum for
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the transaction of business, except to adjourn. Two Council Committee members must
be present for a meeting to occur.” Section 6 of the resolution states that “Any ad hoc
committee shall only convene during public meetings of the Audit Committee.”
Discussion
Since the establishment of the ad hoc committee in May 2017, there has been an
increased need for Audit Subcommittee meetings in order to allow sufficient opportunity
for the ad hoc committee to meet. In response to this increased need, and in
consideration of scheduling challenges that persist even for meetings that do not
include the ad hoc committee, staff seeks to modify the language in the current
resolution. The amended language would require that only one Council Committee
member be present for an Audit Subcommittee meeting to occur, allowing for increased
flexibility in scheduling and further ensuring that Subcommittee business moves forward
in a timely manner.
Staff presented this modification to the Audit Subcommittee at its February 28, 2018
meeting and the Subcommittee unanimously approved of the change.
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action.
Prepared By: Natalie Acosta, Executive Administrative Assistant
Approved
Forwarded to Council
Attachments:
A. Resolution
REFERENCE:
Resolution No. 11103
(CCS)