Item 4HM E M O R A N D U M
December 7, 2009
To:
Shana Yelverton, City Manager
From:
Sharen Jackson, Finance Director
Subject:
Resolution No. 08-008A, Rename the Audit Committee to
Audit and Finance Committee
Action
Requested:
City Council approval of Resolution No. 08-008A, changing
the Audit Committee’s name to Audit and Finance
Committee.
Background
Information:
As you may recall, City Council approved Resolution No. 08-
008 on February 5, 2008 establishing the Audit Committee
and appointing committee members. Endorsed by the
Government Finance Officers Association (GFOA) as a
recommended practice since 1997, audit committees help to
enhance the financial statement auditor’s real and perceived
independence by providing a direct link between the auditor
and the governing body. Additionally, audit committees
facilitate communication between management, the auditors
and the city council.
The City of Southlake Audit Committee is composed of three
council members appointed annually by the City Council
during the regular appointment process of the City’s boards
and commissions.
If approved, Resolution No. 08-008A only changes the name
of the committee to better expand future functions of the
committee (review investment strategies or depository
contracts, etc.)
Audit and Finance Committee responsibilities will include:
a. Meeting with the external auditor prior to the annual audit
to discuss scope and issues
b. A review of the preliminary audit before the audit is
presented to the City Council
c. Any other matters as may be determined by the City
Council and/or Audit and Finance Committee
Financial
Considerations:
There are no financial considerations relating to this agenda
item
Strategic Link:
F1 Achieve competitive financial benchmarks
Citizen Input/
Board Review:
Not Applicable
Legal Review:
Not considered necessary-administrative amendment.
Alternatives:
Modify or deny
Supporting
Documents:
Supporting documents include the following items:
Copy of Resolution No. 08-008A
Staff
Recommendation:
City Council approval of Resolution No. 08-008A
RESOLUTION NO. 08-008A
A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS, RENAMING
THE AUDIT COMMITTEE TO AUDIT AND FINANCE COMMITEE, AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS
, the City Council of the City of Southlake, Texas (the “City”) is
ultimately responsible for the stewardship of the City’s funds; and
WHEREAS,
an annual audit is required by the City Charter; and
WHEREAS
, it would be an enhancement to the City’s financial management to
establish an Audit and Finance Committee; and
WHEREAS
, the Government Finance Officers Association has made the
establishment of an audit committee a recommended best practice as a means of
providing independent review and oversight of a government’s financial reporting
processes, internal controls and independent auditors; and
WHEREAS
, this committee would be composed of three council members and
their responsibilities would include:
a. Meeting with the external auditor prior to audit to discuss scope and
issues;
b. A review of the preliminary audit before the audit is presented to the City
Council; and
c. Any other matters as may be determined by the City Council and/or Audit
and Finance Committee
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS THAT:
Section 1.
An Audit and Finance Committee is hereby established.
Section 2.
Appointments shall be made annually as a part of the regular appointment
process of the City’s boards and commissions.
Section 3.
The City Council authorizes and directs that this action be made part of the
City’s permanent records.
Section 4.
This resolution shall become effective from and after the date of its passage.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF SOUTHLAKE,
th
TEXAS ON THIS THE 15 DAY OF DECEMBER 2009.
APPROVED:
John Terrell, Mayor
ATTEST:
Lori A. Payne, City Secretary