2008-572-Ordinance No. 2008-002 Recorded 5/22/2008REVIE E
LEGAL COUNSEL
COUNTY OFFICIAL
NANCYUBLANKENSHIP, COUNTY CLERKDS
COMMISSIONERS' JOURNAL
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2008-572
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BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Ordinance Adopting Chapter 2.15, County Audit
Committee, of the Deschutes County Code and * ORDINANCE NO. 2008-002
Setting Forth the Conditions and Specifics Under
Which said Appointment Shall Function.
WHEREAS the Board of County Commissioners desires to form the Audit Committee as an
advisory committee to advise the Board on fulfilling their responsibilities for financial reporting,
internal controls, and compliance with laws, regulations, and ethics within the County; and
WHEREAS the Audit Committee will provide oversight to auditing (external and internal) for
the County; and
WHEREAS government auditing independently reviews, evaluates and reports on the financial
condition, the accuracy of financial record keeping, compliance with applicable laws, policies,
guidelines and procedures, and efficiency and effectiveness of operations; and
WHEREAS the Audit Committee protects the independence of the internal audit program by
ensuring that the County Internal Auditor, who reports to the County Administrator, is not influenced
by directives of the County Administrator or by specific Commissioners.; now, therefore:
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON,
ORDAINS as follows:
Section 1. ADDING NEW CHAPTER. The Deschutes County Code is amended by adding a new
chapter, Chapter 2.15, County Audit Committee, set forth in Exhibit "A" attached hereto and by this
reference incorporated herein.
PAGE 1 OF 2 - ORDINANCE NO. 2008-002 (4/2'1/08)
Section 2. REPEALING CHAPTER SECTION. The Deschutes County Code is amended by
repealing chapter section DCC 2.14.100, Audit Committee, set forth as part of the ordinance for
County Internal Auditor. It is being replaced by addition of the above new chapter.
Dated this of , 2008 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
D IS R. LUKE, air
ATTEST:
G-~
Recording Secretary
Date of 1St Reading
A day o 52008.
Date of 2°a Reading: 14 day of 0. , 2008.
Record of Adoption Vote
Commissioner Yes No Abstained Excused
Dennis R. Luke C~
Tammy Melton
Michael M. Daly t~
I C/
Effective date: day of , 2008.
0
ATTEST:
Recording Secretary
PAGE 2 OF 2 - ORDINANCE NO. 2008-002 (4/21 /08)
TAMMY (BANEY) MELTON, Vice Chair
EXHIBIT "A"
Chapter 2.15. COUNTY AUDIT COMMITTEE
2.15.010 Authority.
2.15.020. Composition.
2.15.030 Meetings.
2.15.040. Responsibilities.
2.15.010. Authority.
A. The Board of County Commissioners ("Board") hereby establishes the Audit Committee as an advisory
committee. The committee shall advise the Board and County Administrator on significant audit matters
including, but not limited to:
I. The selection, compensation, and removal of external auditors hired to audit the financial statements for
the County and its related entities;
2. Consultation with the County Administrator regarding the appointment of the County Internal Auditor;
3. Increases and decreases to the requested budget for the internal audit program; and
4. The work plan for internal audits performed under DCC 2.14.040.
2.15.020. Composition.
A. The audit committee shall be comprised of seven members appointed by the Board.
B. Each member shall be appointed to serve a term of two years. Upon initial formation of the committee, the
Board may appoint any member to a shorter term. A member may be appointed to more than one term. The
Board may remove a member of the committee at any time. In the event of a vacancy on the committee the
Board shall, as soon as practicable, appoint a person to serve the unexpired portion of the former member's
term.
C. The committee shall consist of one (1) member county commissioner, two (2) county department head
members, and four (4) public members. The County Administrator shall be an ex-officio nonvoting member.
D. A public member shall be a registered voter within Deschutes County. The chair of the committee shall be a
public member and shall be selected by a majority of the public members. The chair shall serve a one-year
term and may be selected for additional terms. If the public members cannot decide upon a chair, the larger
committee shall decide. The chair shall preside over meetings, as well as provide input on topics for the
agenda.
2.15.030 Meetings
A. The audit committee shall meet as the committee deems necessary. A quorum shall constitute a majority of
the members, two of whom must be public members. Vacant positions shall not be considered in determining
whether a quorum exists. Minutes shall be prepared in accordance with the Oregon Public Meeting Law. The
committee may require certain County management attend meetings to address reports being discussed.
Auditee departments will be invited to meetings where their internal audit report is discussed.
B. A department head audit committee member shall not vote on an issue relating to an audit directly pertaining
to his or her department. If there is any question as to whether audit committee members should recuse
themselves from a vote, the committee should vote to determine whether the member should recuse himself or
herself.
C. The County Internal Auditor shall facilitate and coordinate such meetings, as well as provide ancillary support
to the committee, as time permits.
Exhibit "A" to Ordinance No. 2008-002 (4/21/08)
Chapter 2.15 1 (04/2008)
2.15.040. Responsibilities. Responsibilities of the Audit Committee include:
A. Overseeing the independent audit of the County's financial statements, including:
1. Overseeing the selection, renewal or removal of the independent external auditor by making a
recommendation to the Board for final approval;
2. Meeting with the external auditors during planning of the audit, presentation of the audited financial
statements, and discussion of the letter to management on recommendations; and
3. Overseeing the resolution of audit findings in, areas such as internal control, legal and regulatory
compliance, and ethics.
B. The committee shall work to assure coordination between the internal and external auditors, management, the
County Administrator and Board.
C. The audit committee shall ensure the internal audit program performs its function. The committee shall:
1. Review the internal audit ordinance (DCC 2.14) at least every other year;
2. Review proposed internal audit work plans and make recommendations concerning internal audit projects;
3. Review the budget and staffing levels of the internal audit program (DCC 2.14.050);
4. Review internal audit reports and other communications developed for the County;
5. Review and provide input on internal audit program goals; and
6. Review any quality assurance reviews created pursuant to DCC 2.14.090.
D. The committee shall make appropriate recommendations concerning the internal audit program based upon the
reviews that it conducts pursuant to subsection C of this section.
E. The committee shall make an annual report to the Board summarizing the committee's activities and
recommendations. The report may be delivered at an audit committee meeting attended by the Board or may
be scheduled for a regularly scheduled meeting of the Board. The report shall be delivered to the Board on or
before December 1 each year.
F. The committee shall perform other activities related to this chapter as requested by the Board.
(Ord. 2008-002 §1, 2008)
Exhibit "A" to Ordinance No. 2008-002 (4/21/08)
Chapter 2.15 2 (04/2008)