Resolution - 2021-33RESOLUTION NO.2021-33
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, AMENDING THE
NAME, PROCEDURES, RULES AND REGULATIONS FOR
THE AUDIT COMMITTEE AND RESCINDING
RESOLUTION NO. 2019-31
WHEREAS, California Government Code section 8546.10 authorizes the State Auditor
to establish a bigh-risk local government agency audit program to identify, audit, and issue
reports on local government agencies that are at high risk for the potential of waste, fiaud, abuse,
or mismanagement, or that have major challenges associated with their economy, efficiency, or
effectiveness; and
WHEREAS, based upon risk indicators of general fund reserves, debt burden, liquid ity,
revenue trends, pension obligations, pension funding, pension costs, future pension costs, OPEB
obligations, and OPEB funding, the California State Auditor was granted approval from the
Joint Legislative Audit Committee to conduct a high -risk audit of the City of West Covina; and
WHEREAS, in response to the State Auditor's December 1, 2020 report entitled "City
of West Covina: Its Deteriorating Financial Situation Threatens Its Fiscal Stability and Its
Ability to Provide City Services," the City Council unanimously approved aformal Financial
Recovery Plan with specific timelines, monitoring, and reporting; and
WHEREAS, to irnprove the City's long-term financial health, the City recognizes the
need to monitor implementation of the Financial Recovery Plan; and
WHEREAS, the City Council established an Audit Committee through the adoption of
Resolution No. 2015-73 in October 2015, changed the membership of the Audit Committee
through the adoption of Resolution No. 2016-40 in May 2016; rescinded and replaced
Resolution No. 2016-40 with Resolution No. 2018-60 in May 2018; and rescinded and replaced
Resolution No. 2018-60 with Resolution No. 2019-31 in May 2019, renaming the Audit
Committee as the Finance & Audit Committee; and
WHEREAS, the City Council now desires to assign responsibility to the Audit
Committee for monitoring progress in implementing the Financial Recovery Plan with State -
required written updates every six months, including specific timelines and reporting; and
WHEREAS, the City Council father desires to rename the Finance & Audit Committee
as the Audit Committee and to clarify the duties of the Audit Connnittee.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. AUDIT COMMITTEE RULES AND REGULATIONS
1. ESTABLISHMENT OF THE AUDIT COMMITTEE
The City Council of the City of West Covina hereby renames the previously
established Finance & Audit Committee as the Audit Committee.
2. PURPOSE
The Audit Committee's primary purpose is to support improving the community
and to assist the City Council in discharging its responsibilities for (1) ensuring
financial stability and (2) monitoring the implementation of the corrective actions
identified in the Financial Recovery Plan, approved by the City Council on April 6,
2021.
3. MEMBERSHIP AND APPOINTMENT
The Audit Committee shall consist of five public members who will be appointed
by the City Council. The City Treasurer and two City Council members shall serve
as ex o$icio non -voting members. The City Cleric shall post and advertise the
public positions and vacancies as provided for all other City commissions and
committees.
4. COMPENSATION
Members of the Committee shall serve without compensation.
5. TERM OF MFMBERSHIP
The appointed members of the Committee shall be appointed for two (2) year terms
on a staggered basis, except for the initial appointment as provided herein. For the
initial appointments, one Council Member and one member of the public shall
initially be appointed to serve a one-year term in order to allow for the staggered
terms thereafter.
6. TIME AND PLACE OF MEETINGS
The Committee will meet at least quarterly. All meetings of the Committee shall be
held at the City of West Covina City Hall located at 1444 W. Garvey Ave. S. in the
City of West Covina.
7. CONFLICT OF INTEREST
All members of the Committee are subject to the requirements of the Conflict of
Interest codes of the City of West Covina and Conflict of Interest laws of the State
of California.
8. HUMAN RESOURCES POLICIES
All members ofthe Committee are subject to the requirements of all Human Resource
Department policies of the City of West Covina.
9. DUTIES OF THE COMMITTEE
The role of the Committee is to help improve the City's long-term financial health by
(1) monitoring implementation of the Financial Recovery Plan, (2) monitoring the
monthly financial reports for the purpose of reporting potential deficits, (3) reviewing
the Comprehensive Annual Financial Reports, and (4) making periodic reports to the
City Council.
SECTION 2. This Resolution shall rescind and replace Resolution No. 2019-31, adopted
by the City Council on May 7, 2019.
SECTION 3. The City Clerk shall certify to the adoption of this Resolution and shall enter
it into the book of original resolutions.
APPROVED AND ADOPTED this 4th day of May, 2021.
APPROVED AS TO FORM
Thomas P. 156rdre
City Attorney
ATTEST
U
Lisa S rick
Assis City Clerk
I, LISA SHERRICK, Assistant City Clerk of the City of West Covina, California, do
hereby certify that the foregoing Resolution No. 2021-33 was duly adopted by the City Council of
the City of West Covina, California, at a regular meeting thereof held on the 4th day of May, 2021,
by the following vote of the City Council:
AYES: Castellanos, Diaz, Lopez-Viado, Tabatabai, Wu
NOES: None
ABSENT: None
ABSTAIN: None
Lisa She k
Assista City Clerk