HomeMy WebLinkAboutCC AG PKT 2008-08-11 #P• AGENDA STAFF REPORT
DATE: August 11, 2008
TO: Honorable Mayor and City Council
THRU: David Carmany, City Manager
FROM: Robbeyn Bird, CPA
Director of Administrative Services
SUBJECT: ESTABLISH COUNCIL AD-HOC AUDIT SUB-
COMMITTEE
SUMMARY OF REQUEST:
Adopt Resolution No. 5776 establishing and confirming the appointments made
by the Mayor and City Council to serve on the Ad-Hoc Council Audit Sub-
committee.
• BACKGROUND:
Statement on Auditing Standards (SAS) No. 114 require that the auditor
communicate, either orally or in writing, certain information to an audit committee
or another designated party that performs oversight of the financial reporting and
auditing process. SAS No. 114 identifies specific matters to be communicated
and provides guidance on the communication process, in particular, the principal
purposes of communication and the importance of effective two-way
communication. Compliance with this new standard is easily obtained by
appointing an audit committee.
There are specific benefits which are a direct result of establishing an audit
committee. The City is accountable to the public for the services it provides to its
taxpayers and for the way it uses its resources to provide those services, i.e.
fiscal accountability. Fiscal accountability is demonstrated through strong
internal controls, budgetary and other legal compliance, accurate and timely
financial reporting, and a culture of strong moral and ethical behavior.
The creation of an effective audit committee function can help a government
establish this accountability because it can focus specifically on issues related to
fiscal accountability. In addition, an audit committee can devote more time to
• fiscal accountability matters, resulting in greater benefits. For example, an audit
committee can improve financial practices and reporting by periodically meeting
Agenda Item P
Page 2
with the City Manager and the Director of Administrative Services to review,
monitor, and direct activities and results related to the City's maintenance of
internal controls.
FINANCIAL IMPACT:
None.
RECOMMENDATION:
Approve Resolution No. 5776 adding the names of the two councilmembers,
establish and add the Ad-Hoc Council Audit Sub-Committee to the list of Mayor's
Appointments.
SUBMITTED BY:
Pmdb,e.~..,.r
Robbeyn ird, CPA
Director of Administrative Services
NOTED AND APPROVED:
~~ ~
David Carman ,City Manager
Attachments:
;]
A. Resolution No. 5776
RESOLUTION NUMBER 5776
• A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH, CALIFORNIA ESTABLISHING AN AD-HOC AUDIT SUB-
COMMITTEE AND APPOINTING TWO MEMBERS OF THE CITY
COUNCIL TO SERVE THEREON
THE CITY COUNCIL OF THE CITY OF SEAL BEACH DOES HEREBY
RESOLVE:
Section 1. Statement on Auditing Standards No. 114 ("Statement 114")
require that the auditor communicate certain information to an audit committee or
another designated party that performs oversight of the financial reporting and
auditing process.
Section 2. The City of Seal Beach ("City") hereby complies with Statement
114 by establishing the Ad-Hoc Audit Subcommittee ("Subcommittee").
Section 3. The City Council hereby appoints the following City
Councilmembers to the Subcommittee:
1.
2.
PASSED, APPROVED AND ADOPTED by the City Council of Seal Beach, at a
• meeting hereof held on the 11th day of August , 2008 by the following
vote:
AYES: COUNCILMEMBERS
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS
ABSTAIN: COUNCILMEMBERS
ATTEST:
City Clerk
Mayor
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
CITY OF SEAL BEACH }
I, Linda Devine, City Clerk of the City of Seal Beach, California, do hereby certify
that the foregoing resolution is the original copy of Resolution Number 5776 on
file in the office of the City Clerk, passed, approved, and adopted by the City
Council of the City of Seal Beach, at a regular meeting held on the 11th day
of August , 2008.
•
City Clerk