Resolution - 2016-40RESOLUTION NO. 2016-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA AMENDING THE PROCEDURES, RULES AND
REGULATIONS FOR THE AUDIT COMMITTEE.
WHEREAS, the City Council of the City of West Covina 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 West Covina is meeting its internal control and
financial reporting responsibilities; and
WHEREAS, the City Council recognizes the importance of creating all Audit Committee
as it is considered a financial management best practice; and
WHEREAS, the 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, the City Council established an Audit Committee with Resolution No. 2015-
73; and
WHEREAS, the City Council now desires to remove the City Manager and Finance
Director from the Audit Committee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West
Covina 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 establishes the City of West Covina Audit
Committee.
2. PURPOSE
The Audit Committee's primary purpose is to assist the City Council in discharging its
responsibilities for the overall stewardship of the City's financial affairs. This will include
reviewing financial information; ascertaining the existence and adequacy of accounting and
internal control systems and related safeguards over the City's assets; and overseeing the audit
function.
3. MEMBERSHIP AND APPOINTMENT
The Audit Committee shall consist of five members: the City Treasurer, two City Council
members, and two members of the public. The two City Council members and the two
members of the public will be appointed by the City Council. The City Clerk 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 MEMBERSHIP
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 once annually and shall hold other meetings on an as needed
basis. All meetings of the Committee shall be held at the City of West Covina City Hall located
at 1444 W. Garvey Ave. in the City of West Covina.
7. CONFLICT OFINTEREST
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. DUTIES OF THE COMMITTEE
The role of the Committee is to augment management's accountability to the City Council.
The Committee achieves this goal by:
Recommending the selection of the independent financial auditor for the financial
statement audit;
Monitoring the progress of the financial statement audit;
Evaluating the results of the financial statement audit;
Ensuring that any control weaknesses and legal compliance violations identified in the
course of the financial statement audit are promptly and effectively remedied;
Serving as a direct communications link between the City Council and the independent
auditor; and
Monitoring the adequacy of the City's internal control structure on an ongoing basis, such
as cash disbursements, cash reccipting, treasury transactions, etc., as examined by the
internal audit function and the independent financial auditor.
SECTION 2. That the City Clerk shall certify to the passage and adoption of the
resolution.
APPROVED AND ADOPTED on this 17'h day of May, 2016.
APPROVED AS TO FORM:
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Kimberly Hall Barlow
City Attorney
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Nickolas S..Lewis'
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City Clerk
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1, HEREBY CERTIFY that the foregoing resolution was duly adopted by the City Council of the
City of West Covina, California, at a regular meeting thereof on the 17th day of May, 2016, by the
following vote of City Council:
AYES:
Johnson, Spence, Warshaw, Wu, Toma
NOES:
None
ABSENT:
None
ABSTAIN:
None
Nickolas,S'. Lewis-
CityClerk