§ 26.1706 — Annual Audit

§26.1706 Annual Audit

(a) The Committee shall have direct access to the City’s outside auditor in conducting its review of the City’s annual audit. In connection with the annual audit of the City’s financial statements, the Committee: (1) shall review the City’s calendar of milestones for the preparation of the annual audit; (2) shall request from the outside auditor a formal written statement delineating all relationships between the outside auditor and the City consistent with Independence Standards Board Standard No. 1 and any other applicable auditing requirements, discuss with the outside auditor any such disclosed relationships and their impact on the outside auditor’s objectivity and independence, and take appropriate action to oversee the independence of the outside auditor; (3) may appoint up to two members of the Committee, in an ad hoc capacity, to meet with City management and the outside auditor, together or separately, prior to the completion of the audit, to review and discuss the draft financial statements and the conduct of the audit; (4) may appoint a Committee member to attend meetings of the Disclosure Practices Working Group at which the audited financial statements of the City are considered; (5) shall review with the Chief Financial Officer and the outside auditor: (A) the audited financial statements and the notes to the audited financial statements in the City’s Comprehensive Annual Financial Report upon the issuance of the audit opinion and provide to the City Manager and the City Council any comments or recommendations it may have, and review and discuss with the outside auditor the matters required by Statement on Auditing Standards No. 114; (B) significant accounting policies and practices applied in the preparation of the City’s financial statements; (C) any material financial or other arrangements of the City that do not appear in the City’s financial statements; and (D) any transactions or courses of dealing with third parties that are material in size or involve terms or other aspects that differ from those that would likely be negotiated with independent parties and which arrangements or transactions are relevant to an understanding of the City’s financial statements. (6) Shall recommend to the City Council whether the audited financial statements should be received by and filed with the Council. (b) The Committee may require certifications from any City employee regarding that employee’s role in preparing the City’s financial statements that the Committee deems necessary and appropriate to support the Committee’s recommendation to the City Council.

(Added 3-29-2010 by O-19943 N.S.; effective 4-28-2010.)