Item #05
Date: May 17, 2022
To: Mayor and City Council
From: Jim Schaad, City Manager
Subject: Creation of a New Financial Audit Committee
Recommendation:
Pass a Motion to adopt Resolution 2022-XX establishing as a new standing committee, the Financial Audit Committee.
Background:
While not required by the Audit process nor Auditors, the Council wanted to proceed with a Financial Audit Committee in order to solidify the transparency of the City and our annual Audit process. Council ultimately directed staff to draft a resolution to create this committee and define its charge. In order to ensure proper checks and balances, two City Councilmembers shall be appointed to this new Financial Audit Committee, a new standing committee per Marysville Administrative Code Section 182 (c)(1).
Discussion and Analysis:
Based on council input, staff proposes the “Financial Audit Committee” to ensure transparency.
Specifically, the committee is given the charge to:
1) Review results of solicitations for professional auditing services and staff proposals for award. 2) Meet with auditors and management on an annual basis to review the results of independent financial audit including matters required to be communicated to the committee under generally accepted auditing standards.
3) Review audit approaches and coordination of the audit effort with management staff and make recommendations as necessary.
4) Review the City’s (financial) risk management process and effective internal controls as needed. 5) Review the City’s financial management/audit policies as applicable, particularly in areas such as ethics, conflict of interest, fraud and misappropriation. 6) Establish direct communication with the organization’s auditors as needed to discuss matters of concern that may arise.
7) Meet separately with external auditors as necessary to discuss matters that the committee or auditors believe should be discussed privately including topics such as regulatory compliance, ethics, fraud, misappropriation, and whistleblowing.
8) Report and provide recommendations to the full council body regarding the topics listed above.
This Committee would continue until either the accomplishment of its purpose or four years after the adoption of this Resolution, absent earlier termination by the City Council or reauthorization for a continued existence pursuant to Marysville Administrative Code Section 182(c)(1).
Fiscal Analysis:
The formation of this standing committee represents no fiscal impact to the General Fund at this time.
Attachments:
1. Resolution 2022-XX