§ 8.140 — Audit committee

8.140. - Audit committee.

(a) To ensure the independence of the audit function, the city council shall establish an audit committee which is responsible for providing general oversight of the office of city auditor. (b) Composition. The audit committee shall consist of seven (7) members, as follows: (1) Two (2) members of the city council appointed by the council president. The two (2) council members appointed by the council president shall be made as part of the city council's organizational meeting following each general municipal election, or whenever necessary due to vacancy or other reason. (2) One (1) commissioner designated by the Minneapolis Park and Recreation Board. (3) Four (4) community members who shall be: a. Residents of the city who are not current city employees, are not past or current elected officials of the city council, and who have expertise in relevant fields related to the functions of the audit committee, including but not limited to auditing, preferably public sector internal or management auditing, or financial management. Community members should expand and enhance the perspective of the audit committee in order to increase the value of its oversight and direction of the city's audit function. b. Appointed by the city council through the open appointments process. All community member appointments will be made for three-year terms and no community member shall be appointed for more than two (2) terms. (c) Organization and operations. (1) The council president shall designate one (1) of the council members appointed to the audit committee to be its chair. The audit committee shall select its own vice-chair from amongst its members. (2) The audit committee shall conduct a minimum of four (4) regular meetings per year, but special meetings may be conducted when necessary at the call of the committee chair. A majority of members appointed to the audit committee shall constitute a quorum for the conduct of business. All meetings of the audit committee shall comply with the Minnesota Open Meeting Law. (3) The city clerk, or a designee of the city clerk, shall be secretary to the audit committee and shall: a. Issue notices of its meetings and other actions when required. b. Attend its meetings and record the proceedings thereof and all decisions made. c. Keep and preserve its files and papers. (d) Duties. The audit committee shall: (1) Provide general oversight and direction to the office of city auditor and its functions, including financial reporting practices, internal controls, compliance with applicable laws and regulations relating to financial controls, and other related matters. (2) Appoint the city auditor to a four-year term. (3) Confirm the appointment by the city auditor of the internal audit director. (4) On at least an annual basis, conduct a performance review of the city auditor's performance. (5) Review and approve the city auditor's annual audit plan and monitor the auditor's results and follow-up activities. (6) Review the audit reports directed to it and may make recommendations on any such audit reports to: a. The city council for consideration on the appropriate course of action for findings requiring city council action to remediate, such as legislative changes, regulations, or referral to legislative analysts. b. The mayor for consideration on the appropriate course of action for reports concerning the operations, functions, or performance of city offices or officials, departments, and boards and commissions, and agencies, or for consideration of the appropriate course of action where findings impact the city budget. c. The Minneapolis Park and Recreation Board for consideration on the appropriate course of action for reports concerning Minneapolis Park and Recreation Board activities. (7) Monitor the city auditor's results and effectiveness of proposed corrective actions. (8) Review reports of the state auditor prepared for any of the city's departments, boards and commissions.

(Ord. No. 2022-045, § 2, 10-20-22)