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HomeMy WebLinkAboutD-2342-16 Creates Independent Audit CommitteeSPONSOR(S): Councilors Carter, Rider and Worrell ORDINANCE NO. D-2342-16 AS AMENDED AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, ADDING CHAPTER 2, ARTICLE 2, SECTION 2-24 TO THE CARMEL CITY CODE Synopsis: Creates an independent Audit Committee to oversee all City audit activities. WHEREAS, it is vital to effective government that the government exercise its power and perform its duties in compliance with law, policy and established procedures and apply good judgment and sound management practices; and WHEREAS, in order to increase the transparency, efficiency, and accuracy of the City's auditing and published Generally Accepted Accounting Principles (GAAP) financial statements, the Common Council hereby establishes an independent audit committee (the "Audit Committee"); and WHEREAS, it is now in the public interest to establish the Audit Committee to oversee City auditing as set forth below. NOW, THEREFORE, the Common Council ordains and states as follows: Section 1. The foregoing Recitals are fully incorporated herein by this reference. Section 2. Chapter 2, Article 2, Section 2-24 should be and the same is hereby added to the Carmel City Code and shall read as follows: "§ 2-24 Audit Committee. a. There is hereby established a City of Carmel Audit Committee ("Audit Committee"). b. The Audit Committee shall be composed of the following five (5) members: 1. The President of the Carmel Common Council, or a member of the Carmel Common Council appointed by the President of the Carmel Common Council and serving at his pleasure. 2. A full time City employee appointed by the Mayor, who is not the Fiscal Officer of the City, serving at the Mayor's pleasure, who shall serve as secretary of the Audit Committee. 3. A resident of the City appointed by the Common Council who is a Certified Public Accountant and who is neither the Fiscal Officer of the City nor an Ordinance D-2342-16 — Version A 1/9/16 Page One of Four . This Ordinance was prepared by Jon Oberlander, Carmel Senior Assistant City Attorney, on 12/9/16 at 11:05 a.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. C:\Users\jquinn\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content. utlook\ZG7CRSHI\D-2342-16 Audit Committee Ordinance Clean As Amended.doex SPONSOR(S): Councilors Carter, Rider and Worrell employee of the City for a two (2) calendar year term, to hold over until a successor is duly appointed, and who shall serve as a chairman of the Audit Committee. 4. A resident of the City appointed by the Common Council who is an executive or owner of a publicly -held company, a person experienced in municipal security investment, or a university -level professor in accounting, finance, economics or law, or has equivalent credentials, and who is not an employee of the City for an initial one (1) calendar year term, to hold over until a successor is duly appointed. Subsequent appointees shall be appointed to a two (2) calendar year term, to hold over until a successor is duly appointed. 5. A resident of the City appointed by the Mayor who is a Certified Public Accountant or has a background in Finance and who is neither the Fiscal Officer of the City nor an employee of -the City for a two (2) calendar year term, to hold over until a successor is duly appointed. c. No member of the Audit Committee may serve more than two (2) consecutive terms. d. Any member of the Audit Committee, except for the Common Council President, may be removed at any time, with or without cause, by the City official or by a two-thirds vote of the City body that appointed the member, as applicable. e. The Audit Committee shall have the following powers and duties: 1. The Audit Committee shall recommend independent auditors to examine the annual GAAP financial statements of the City. The auditors shall be the Indiana State Board of Accounts or a firm of CPA's licensed in the State of Indiana. All independent auditors shall be retained by the Mayor's Office, acting through the Carmel Board of Public Works and Safety; 2. The Audit Committee shall exercise primary responsibility for arranging the degrees, modes, and frequencies of communications among City staff or consultants preparing the GAAP financial statements, the City's consulting actuaries, other consultants, the independent auditors, and other City officials; 3. The Audit Committee shall receive comments and other reports presented by the independent auditors of the GAAP financial statements during their fieldwork, if any arise, and at the conclusion of their,audit; 4. The Audit Committee shall receive comments and reports from any auditors performing other financial and compliance audits involving activities of the City during their fieldwork, if any arise, and at the conclusion of their audit; 5. The Audit Committee shall inquire of appropriate City officials as to corrective actions taken with regard to any audit findings, audit report modifications, adverse audit reports, or other matters of concern arising from financial and compliance audits Ordinance D-2342-16 — Version A 1/9/16 Page Two of Four This Ordinance was prepared by Jon Oberlander, Carmel Senior Assistant City Attorney, on 12/9/16 at 11:05 a.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. C:\Users\jquinn\AppData\Local\Microsoft\Windows\TemporaryIntemet Files\Content.0utlook\ZG7CRSHI\D-2342-16 Audit Committee Ordinance Clean As Amended.docx SPONSOR(S): Councilors Carter, Rider and Worrell involving activities of the City, and, as the Audit Committee deems appropriate, issues arising from comments by City employees, contractors, and citizens; 6. Report annually to the Common Council on how it has discharged its duties and met its responsibilities; 7. Take such other actions as are permitted by Indiana law in order to fulfill its duties and responsibilities." f. A member of the Audit Committee may not be a City contractor, or an owner, officer, or employee of a City contractor. An Audit Committee member may be a City bondholder. Section 3. If any portion of this Ordinance is for any reason declared to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this Ordinance so long as enforcement of same can be given the same effect. Section 4. This Ordinance shall be in full force and effect from and after its passage and signing by the Mayor. This Ordinance was prepared by Jon Oberlander, Carmel Senior Assistant City Attorney, on 12/9/16 at 11:05 a.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. C:\Users\jquinn\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\ZG7CRSHI\D-2342-16 Audit Committee Ordinance Clean As Amended.docx SPONSOR(S): Councilors Carter, Rider and Worrell PASSED by the Common Council of the City of Carmel, Indiana, this �4 day of 2017, by a vote of --&?— ayes and --a nays. COMMON COUNCIL FOR THE CITY F CARMEL Sue Fi am, Presi ent Kevin D. Rider Rongl'd E. Carter r - Tnnv (Tri -an Presented by me to the Mayor of the City of ( a lA 2016, at : 3© A. ana this 10- lay of istine S. Pauley Approved by me, Mayor of the City of CaRnel, Indiana, this day of G 2016, at lZ; U,4— P.M. J es Brainard, Mayor A EST - Christine S. Pau y, Clerk-Treasux Ordinance D-2342-16 — Version A 1/9/16 Page Four of Four This Ordinance was prepared by Jon Oberlander, Carmel Senior Assistant City Attorney, on 12/9/16 at 11:05 a.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. X:\joberlander\Ordinances\D-2342-16 Audit Committee Ordinance Clean As Amended.docx