Cape Coral Code of Ordinances ch. 2, art. V, div. 9 — AUDIT COMMITTEE | Code of Ordinances, City of Cape Coral, Florida (Supp. No. 39, Update 1; codified through Ordinance No. 45-26, enacted September 3, 2026) — City of Cape Coral

Cape Coral Code of Ordinances § 2-120.30 Creation and purpose.

§ 2-120.30 - Creation and purpose. (a) There is hereby established an Audit Committee to be composed of members appointed by the City Council. The Audit Committee established herein shall replace the Audit Committee previously established by Resolution 17-06 that was adopted on May 1, 2006. (b) The purpose of the Audit Committee is to serve in an advisory capacity to the City Council and the City Auditor's Office on issues presented to the Committee relating to the city's financial and other reporting practices; internal control; compliance with laws, regulations and ethics; independent audit process; and special audit needs. (Ord. 99-08, 8-11-2008)

Cape Coral Code of Ordinances § 2-120.31 Duties.

§ 2-120.31 - Duties. (a) Annual financial audit. The Audit Committee shall assist the City Council in selecting an auditor, in accordance with the provisions of F.S. § 218.391 to conduct the city's annual financial audit required by F.S. § 218.39. (b) Financial and other reporting practices. The Audit Committee shall provide reasonable assurance to the City Council that controls are in place and operating to ensure that financial information reported by management reasonably portrays the city's financial condition, results of operations, and plans and long-term commitments by reviewing results of internal and external audits. (c) Internal control. The Audit Committee shall provide reasonable assurance to the City Council that controls are in place and operating to ensure that resources are utilized in an efficient and economical manner and that programs are carried out as planned by reviewing the results of internal and external audits. (d) Compliance with laws, regulation, and ethics. The Audit Committee shall provide reasonable assurance to the City Council that the city is in compliance with pertinent laws and regulations, is conducting its affairs ethically, and is maintaining effective controls against conflicts of interest and fraud by reviewing results of internal and external audits. (e) Safeguarding the independence of the audit process. The Audit Committee shall provide reasonable assurance to the City Council that the audit process is independent by: (1) Making recommendations to the City Council with respect to the appointment or dismissal of the external auditor. (2) Reviewing and recommending approval or disapproval of the annual external audit plan and budget. (3) Reviewing and making recommendation to the City Auditor on the annual internal audit plan. (4) Ensuring that the audit process is conducted in accordance with generally accepted auditing standards including Government Auditing Standards, issued by the Comptroller General of the United States, and Standards for Professional Practice of Internal Auditing, issued by the Institute of Internal Auditors, Inc. (f) The Audit Committee shall perform other oversight duties as may be assigned by the City Council. (g) Develop and adopt bylaws that are consistent with the Florida Statutes and guidelines established by the State of Florida Auditor General, the Institute of Internal Auditors (IIA), the Government Accountability Office, and the American Institute of Certified Public Accountants (AICPA). (Ord. 99-08, 8-11-2008)

Cape Coral Code of Ordinances § 2-120.32 Membership.

§ 2-120.32 - Membership. (a) Members. The Audit Committee shall consist of five regular members, one of whom shall be a City Council member, and one alternate member, who shall not be a City Council member, and shall serve as an alternate for only non-City Council members. When substituting for an absent member, the alternate member may vote and participate in all discussions of the Committee in the same manner and to the same extent as the regular members of the Committee. When not substituting for an absent member, the alternate member shall not vote on any matter before the Committee, but may participate in all discussions of the Committee in the same manner and to the same extent as the regular members of the Committee. The regular and alternate Audit Committee members who are not City Council members shall be selected based on their qualifications and willingness to serve. Members of the Audit Committee shall be selected without regard to race, creed, national origin, age, sex or the presence of a disability. (b) Eligibility. (1) All members of the Audit Committee shall be city residents who do not have any direct financial or business interests involving the city. City Council may waive the residency requirement by majority vote if there are an insufficient number of applicants who reside in the city. (2) The composition of the Audit Committee shall be consistent with the "Auditor Selection Guidelines" dated 2007 and promulgated by the Auditor Selection Task Force established by the State of Florida Auditor General's Office. (3) All members should, through education and experience, possess a basic understanding of governmental financial reporting and auditing. At least one non-City Council member of the Audit Committee shall have accounting, auditing, or related financial management expertise that is specifically relevant to the government sector and includes: a. An understanding of generally accepted accounting principles and financial statements; b. Experience in preparing or auditing financial statements of comparable entities; c. Experience in applying such principles in connection with the accounting for estimates, accruals, and reserves; d. Experience with internal accounting controls; and e. An understanding of audit committee functions. (c) Appointments. As of November 30, 2023, the current term of all members of the Audit Committee shall be terminated. At the first regular meeting of City Council in the month of December, 2023, City Council shall appoint the members of the Audit Committee. Of the members first appointed, three shall serve for terms of two years, and two for terms of one year. Thereafter, the term of office for each member shall be two years. Terms of office shall commence immediately following the December appointment, with terms thereafter commencing on December 1 each year and terminating on November 30 of the calendar year in which the term expires. Members may serve no more than two consecutive terms. Any member that has not served a full term, whose term shell be terminated on November 30, 2023, may be appointed for a maximum of two additional terms. The alternate member of the Audit Committee shall serve an initial term of two years. Thereafter, the alternate member shall serve for a period of two years from the date of appointment. City Council members appointed to serve as a member of the Audit Committee shall serve a term of one year with no limitation as to reappointment for additional, consecutive one-year terms. The term of office limitation imposed by this section may be waived in regard to specific individuals by a two-thirds vote of the City Council. (d) Quorum. Three members shall constitute a quorum. (e) Forfeiture of membership. (1) Membership on the Audit Committee shall be forfeited if a member is absent from two of three consecutive regularly scheduled meetings of the Audit Committee. (2) A member shall forfeit their membership on the Audit Committee for cause if the member: a. No longer meets eligibility requirements; b. Violates any express prohibition imposed by the City Council or law; c. Is convicted of a felony; or d. Is guilty of habitual public drunkenness, corruption, incompetence or some other substantial shortcoming which renders the member's continuance in office in some way detrimental to the discipline and efficiency of the service and which the law and sound public opinion recognize as good cause for forfeiture of office. (3) Forfeiture of membership for cause shall be subject to the hearing requirements contained in § 2-58 of the City Code. (Ord. 22-22, § 1, 3-2-2022) (Ord. 22-22, § 1, 3-2-2022; Ord. 84-23, § 1, 10-18-2023) (Ord. 99-08, 8-11-2008)

Cape Coral Code of Ordinances § 2-120.33 Meetings.

§ 2-120.33 - Meetings. (a) The Audit Committee shall meet not less than once quarterly, when possible, but not less than four times a year. All meetings are considered public meetings and the City Clerk shall be responsible for meeting notification and minutes. (b) All meetings shall be open to the public, minutes of each meeting shall be promptly recorded, and such records shall be open for public inspection. (Ord. 22-22, § 1, 3-2-2022) (Ord. 99-08, 8-11-2008)