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Home My WebLink AboutOrdinance 011 - Audit CommitteeDeschutes County Board of Commissioners 1300 NW Wall St., Suite 200, Bend, OR 97701 -1960 (541) 388 -6570 - Fax (541) 385 -3202 - www.deschutes.org AGENDA REQUEST & STAFF REPORT For Board Business Meeting of May 13, 2009 Please see directions for completing this document on the next page. DATE: 4/10/09. FROM: David Givans Administrative Services - Internal Audit 330 -4674 TITLE OF AGENDA ITEM: Consideration of Second Reading and Adoption of Ordinance No 2009 -011, amending Chapter 2.15 - County Audit Committee . PUBLIC HEARING ON THIS DATE? No BACKGROUND AND POLICY IMPLICATIONS: The ordinance amends Chapter 2.15 County Audit Committee originally adopted through ordinani e No. 2008 -002 as approved in May 2008. The ordinance incorporates recommendations from the audit committee and input from the Board of County Commissioners. The audit committee recommends increasing the potential participation of public members from four to six members and the total size of the committee to be not less than seven but no more than nine. The committee also supports the simplified quorum requirements. FISCAL IMPLICATIONS: None. RECOMMENDATION & ACTION REQUESTED: Second reading and adoption of Ordinance No. 2009 -011. ATTENDANCE: David Givans, County Internal Auditor DISTRIBUTION OF DOCUMENTS: David Givans REV I.WED, LEGAL COUNSEL For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Ordinance Amending Chapter 2.15, County Audit * Committee, of the Deschutes County Code and * ORDINANCE NO. 2009-011 Setting Forth the Conditions and Specifics Under Which said Appointment Shall Function. * WHEREAS the Board of County Commissioners in 2008 added to the Deschutes County Code, Chapter 2.15 County Audit Committee to codify the 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 Board of County Commissioners and Audit Committee believe additional public participation would be welcomed. The attached revisions allow for a range in public members of four (4) to six (6); now, therefore: THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, ORDAINS as follows: Section 1. AMENDING CHAPTER 2.15. The Deschutes County Code is amended by incorporating the revised verbiage of 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. 2009-011 (4/29/09) Dated this of , 2009 ATTEST: BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON TAMMY BANEY, Chair DENNIS R. LUKE, Vice Chair Recording Secretary ALAN UNGER, COMMISSIONER Date of 1st Reading: day of , 2009. Date of 2nd Reading: day of , 2009. Record of Adoption Vote Commissioner Yes No Abstained Excused Tammy Baney Dennis R. Luke Alan Unger Effective date: day of , 2009. ATTEST: Recording Secretary PAGE 2 OF 2 - ORDINANCE NO. 2009-011 (4/29/09) 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: 1. 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 not less than seven or more than nine 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) to six (6) 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. appointed. 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 Exhibit "A" to Ordinance No. 2009 -011 (4/29/09) Chapter 2.15 1 (04/29/2009) 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. 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 fmancial 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. 2009 -011 (4/29/09) Chapter 2.15 2 (04/29/2009)