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HomeMy WebLinkAboutR2005-052FILE REFERENCE FORM I R2005-052 I FILE(S) Date Initials Superceded by Resolution No. R2006-013 04/18/06 JR S:\OUf DocumentslResolutionsl05\:llIdit committee,doc RESOLUTION NO. 12 tJOS-IJ.!:T2 A RESOLUTION OF THE CITY OF DENTON, TEXAS APPROVING INTERNAL AUDIT FUNCTIONS OF THE CITY OF DENTON; ESTABLISHING AN AUDIT COMMITTEE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, it is the objective of the City of Denton to maintain a comprehensive program of internal auditing as an overall internal control measure and a service to the City; and WHEREAS, the purpose of the Internal Audit Department is to aid the City Council and City management in achieving City goals and objectives, while minimizing undue risk; and WHEREAS, internal audit is a control that functions by measuring and evaluating the effectiveness of other City controls; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: SECTION I. The functions of the Internal Audit Department, which are attached hereto and incorporated as if fully rewritten herein, are hereby approved. SECTION 2. There is hereby established an Audit Committee ("Committee") composed of the Mayor, one District City Council member, and one At-Large City Council member. Ex officio members on the Committee include the City Manager and up to two Assistant City Managers. Other voting and non-voting members may be added upon determination by the voting members of the Committee. SECTION 3. The City Council members on the Committee shall be rotated, and shall serve alternating, two-year terms. The District City Council member will be rotated off the Committee in odd-numbered years, while the At-Large City Council member will be rotated off the Committee in even-numbered years. The Mayor and ex officio members shall remain on the Committee until voluntary resignation from the Committee, end of term in office, or termination from the City. SECTION 4. This resolution shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ! gth day of /Je(l..trn/W , 2005. c~A~ EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: ~/lf,hd1llA1iJM1 /l~Lt. APPROVED AS TO LEGAL FORM: EDWIN M. SNYD , CITY ATTORNEY BY: Page 2 City of Denton Internal Audit Following is the governing document for the Internal Audit function of the City of Denton. Ohjective It is the objective of the City of Denton to maintain a comprehensive program of internal auditing as an overall internal control measure and a service to the City. Its purpose is to aid the City Council and City Management in achieving City goals and objectives while minimizing undue risk. Internal Audit is a control that functions by measuring and evaluating the effectiveness of other City controls. Reporting Structnre Administratively, and when independence is not compromised, Internal Audit will report directly to the City Manager. All administrative matters concerning work schedules, time off, performance evaluations, hiring, firing, etc., will be handled by the City Manager. Operationally, Internal Audit will report to the City's Audit Committee. The Audit Committee will approve annual Internal Audit plans, as well as review audit work performed throughout the year. The Audit Committee will consist of the Mayor and two additional City Council members. Other Committee members, both voting and non- voting, may be added upon determination by the above listed Audit Committee members. Non-voting or ex officio members will include the City Manager and up to two Assistant City Managers. Audit Committee Rotation City Council members on the Audit Committee shall be rotated, serving an alternating, two-year term. One District City Council member will be rotated off the Audit Committee on odd years, while one At Large City Council member will be rotated off the Audit Committee on even years. To provide additional continuity, however, the Mayor and all non-voting or ex officio committee ,members will remain members until voluntary resignation from the committee, end of elected position or termination from the City. Authority Internal Audit is responsible for providing the City Council and City Management information about the adequacy and effectiveness of its systems of internal controls and quality of operating performance when compared to established standards. To accomplish this, Internal Audit shall have unrestricted access to all activities, properties, personnel and records which are relevant to an area under review, to the extent permitted by law. It is understood that certain items are confidential in nature and special arrangements will be made when examining and reporting such items. On an annual basis, the Audit Committee will approve Internal Audit's annual Internal Audit Plan authorizing the performance of the reviews included. As part of the Internal Audit Plan, authorization to perform special projects and reviews is granted to Internal Audit by the Audit Committee. This allows for the performance of unplanned Internal Audit projects/reviews throughout the year, when determined necessary by Internal Audit, City Management or the City Council. Independence Internal Audit shall be free from control or undue influence in the selection and application of audit techniques, procedures and programs; the determination of facts revealed by the examination or in the development of recommendations or opinions; and the selection of areas, activities, personal relationships and managerial policies to be examined. For this reason, Internal Audit reports operationally to the Audit Committee. When matters involving City Management arise, or other matters as determined by the Internal Auditor, the Internal Auditor will have the right to call together only those members of the Audit Committee that are not a part of City Management. Responsibility The responsibility of Internal Audit is to examine and evaluate the adequacy and effectiveness of the City's systems of internal controls and the quality of operating performance against established standards. Internal Audit will issue reports of all findings to the appropriate members of City Management, as well as to the Audit Committee. Internal Audit will be responsible for monitoring management's progress as it relates to the resolution of issues noted during reviews performed. However, the resolution of issues noted and the implementation of new procedures and processes is the sole responsibility of City Management. ; Further, on an on-going basis, the internal controls throughout City operations are the sole responsibility of City Management. Audit Records Accessibility In accordance with the Public Information Act, final reports, along with the supporting documentation, issued by Internal Audit are subject to Open Records Requests. Some exceptions may apply to employee or other investigations performed in conjunction with the City Legal or Police Departments. Since Internal Audit has the authority to perform reviews of all areas of the City's operations, the availability of audit working papers may be withheld if allowed by the Public Information Act.