HomeMy WebLinkAbout029287 ORD - 11/15/20111
Ordinance amending Ordinance No. 029171 regarding City Auditor;
establishing a Council Audit Committee; providing for severance;
and providing for publication.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI,
TEXAS:
Section 1. Ordinance No. 029171 regarding City Auditor is amended to read as follows:
"Sec. 121/2-1. - Establishment of the office of City Auditor.
(a) There is hereby established the Office of the City Auditor, which shall be directed
by the City Auditor who shall be appointed by affirmative vote of a majority of the entire
membership of the City Council.
(b) The City Auditor must:
(1) Be a person knowledgeable in performance and financial auditing, public
administration, and public financial and fiscal practices;
(2) Be licensed as a certified public accountant or certified internal auditor; and
(3) Exercise due professional care in carrying out his or her responsibilities, and
provide reasonable assurance that due professional care will be employed in
conducting audits. The City Auditor will establish audit policies and procedures
consistent with Government Auditing Standards, established by the Comptroller
General of the United States, as well as applicable laws and regulations.
(c) The City Auditor's compensation shall be fixed by the City Council.
(Ord. No. 029171, § 1, 8-23-2011)
Sec. 121/2-2. - Independence, objectivity, and audit standards.
(a) The organization and administration of the auditor's office shall be sufficiently
independent to assure that no interference or influence shall adversely affect an
independent and objective judgment of the auditor.
(b) The Office shall be provided a discrete budget sufficient to carry out the
responsibilities and functions established in this ehapte ordinance and to ensure
appropriate professional development, continuing professional education, and
compliance with applicable certification requirements.
(c) The City Auditor shall establish an organizational structure appropriate to carrying
out the responsibilities and functions of this chapter.
(d) No person shall be appointed to the position of City Auditor who has been mayor,
council member, or City Manager of the city during a period of five (5) years prior to the
date of the City Auditor's appointment. In no case shall the City Auditor be related, by
affinity or consanguinity within the second degree, to the mayor, any council member or
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the City Manager.
(e) The City Auditor shall not be actively involved in partisan political activities of the
City of Corpus Christi.
(f) Neither the City Auditor nor any member of the Office staff shall conduct or
supervise an audit of an activity for which they were responsible or within which they
were employed during the preceding two (2) years.
(g) The City Auditor shall adhere to Government Auditing Standards, insofar as
possible, when conducting the City Auditor's work and will be independent as defined by
those standards.
(h) The responsibility for selection of audit areas shall initiate with the City Auditor, with
due consideration of the interests and concerns of the City Council and City Manager.
To accomplish this:
(1) No less than thirty (30) days prior to the beginning of each fiscal year the City
Auditor shall submit an annual audit plan to the City Council through the Council
Administrative Audit Committee for review and comment. The plan shall include
identification of the scope—efidentify each audit to be conducted in terms of the
department, organizations, services, programs, functions, and activitiesor policy to
be audited and - - - = = ` - - - - ' - •• - - audit objectives to be
addressed. The Council Administrative Audit Committee shall forward the plan to
the City Council for City Council review and final approval.
(2) The annual audit plan may be amended during the year, following notification
of the Council Administrative Audit Committee and due provision for comment.
Such amendments may be initiated by the City Auditor, or requested by the Council
Administrative Audit Committee, or the City Manager, or City Manager's designee;
any amendments to the annual plan must be reviewed by and approved by sity
councilthe Audit Administrative Committee, with written notice of such changes to
the full City Council in a timely manner;
(3) Results of special audits shall be distributed in the same manner as all other
audit reports, as provided in section 12-1/2-5, preparation and release of reports, of
this chapter.
(4) If the City Auditor determines that there is serious concern regarding fraud,
abuse, or illegality, or that the scope of an audit in progress should be expanded as
the result of any findings, the City Auditor is authorized to initiate spontaneously
and conduct, or expand the scope of, an audit beyond that approved in the work
program. The City Auditor shall notify the Council AdministrativeAudit Committee of
the change.
(5) Notwithstanding the calendar identified above in subsection (h)(1), the initial
audit plan for remainder of the fiscal year ending July 31, 2012 shall be prepared
by the City Auditor and submitted to administrativeAudit committee, for review and
comments by ad rniniotrativesAudit committee, - - • - -
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of City Auditor on or before November 30, 2011. The initial audit plan shall then be
submitted to City Council for its review and final approval.
(i) Within the budget approval process and personnel policies established by the City
Council for all departments, the City Auditor shall have the power to appoint, employ,
and remove such assistants, employees, and personnel as he/she may deem
necessary for the efficient and effective administration of the affairs of the Office of the
City Auditor. All employees of the City Auditor's Office shall be exempt from classified
service.
(j) Neither the City Manager, nor Assistant City Managers, nor the Council nor any of
its members shall in any manner dictate the appointment or removal of any such officer
or employee whom the City Auditor is empowered to appoint, subject to any duly
authorized grievance procedure.
(k) As provided in the City Charter, Article II, Section 29(a); the City Auditor may be
removed only by a majority of the City Council.
(Ord. No. 029171, § 1, 8-23-2011)
Sec. 121/2-3. _ _ . - ... - Audit Committee.
(a) The Administrative -Audit Committee will provide guidance to and oversight of the
City Auditor's Office in the performance of its responsibilities. The appointment of four
Council Administrative Audit Committee members by the Mayor will be decided annually
in August January. The Mayor shall appoint one of the Council Members as the
Chairperson. However, if a committee has not been appointed, then the duties of the
Council AdministrativeAudit Committee as described in this chapter shall be undertaken
by the entire City Council.
(b) The City Council shall communicate City Council's expectations and feedback to
the City Auditor. The duties of the committee with respect to the City Auditor are
described below:
al. To review and provide comments 'regarding the City Auditor's annual work
program, to be formally reviewed and approved by City Council each year;
b2. To monitor the city's internal controls through the results of external audits,
and internal audits and other activities of the City Auditor; aR
63. To monitor audit results and follow-up activities of the City Auditor;: and
4. To ensure that audit results include recommendations that serve to improve or
enhance city operations.
(c) The Administrative Audit Committee shall meet as needed to perform its duties but
shall meet at least once quarterly.
1. A majority ofthe members of the Administrative Audit Committee shall
constitute a quorum.
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2. The minutes of each meeting are to be prepared and sent to the Committee
members and approved at subsequent meetings.
3. In compliance with the Texas Open Meetings Act, the Administrative Audit
Committee will hold executive sessions with the City Auditor and external auditors as
deemed appropriate.
(d) The City Auditor shall have direct communication with the Council Administrative
Audit Committee, and attend all Council Administrative Audit Committee meetings.
(Ord. No. 029171, § 1, 8-23-2011)
Sec. 121/2-4. - Access to records and property.
All officers,_ and employees, or agents of the City shall provide free and open access to
and furnish the City Auditor or employees in the Office of the City Auditor with rcqucstcd
information,any and all documents including but not limited to records, books, accounts,
internal or external memoranda, writings and tapes, reports, vouchers, correspondence
files, CDscomputer data, bank accounts, reports, funds, money, and other information
and or property in their custody. Also, such officers, employees, or agents shall fully
cooperate with the Office of the City Auditor, and make full disclosure of all known
information. In addition, they shall provide access for the City Auditor to inspect all
property, equipment, and facilities within their custody and observe any operations for
which they are responsible.
(Ord. No. 029171, § 1, 8-23-2011)
Sec. 121/2-5. - Preparation and release of reports.
(a) Each audit shall result in a report which shall:
(1) Be transmitted in draft to the City Manager, who will provide a written
response to the City Auditor regarding the audit findings and recommendations
within an agreed time frame. The response will indicate agreement or
disagreement and reasons for any disagreements, and what actions, if any will be
taken. The City Auditor will include the responses in the final report, unless they are
not received within the established time frame;
(2) Be submitted in final form to the City Council and the City Manager, and shall
be retained in the City Auditor's office as a permanent recordin accordance with the
City's records management program;
(3) Adhere to reporting standards for financial and performance audits as
described in Governmental Audit Standards.
(b) When appropriate, the City Auditor may issue other reports as needed which
provide information when an audit is not required. These reports present work that is
generally advisory in nature.
(Ord. No. 029171, § 1, 8-23-2011)
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Sec. 121/2-6. - Powers and duties.
(a) The City Auditor shall systematically and continuously examine the works of all city
operations to identify opportunities to reduce costs, increase efficiency, quality, and
effectiveness, or otherwise improve management of city programs and services.
(b) Scope of work. The City Auditor is empowered to conduct performance and other
audit work to determine whether:
(1) Activities and programs being implemented have been authorized by the
council, or some other legal authority, and are being conducted in a manner
contemplated to accomplish the objectives intended by the council or other
authorizing authority;
(2) The effectiveness of organizations, programs, activities, functions or policies,
and the extent to which desired results or benefits are being achieved;
(3) The audited entity is acquiring, protecting, and using its resources (such as
personnel, property, and space) economically and efficiently, and the causes of
inefficiencies or uneconomical practices;
(4) The audited entity is in compliance with council or other legally imposed
mandates regarding efficiency, economy, effectiveness, or expenditure of public
funds;
(5) Systems of administrative and accounting control have been established by
management to effectively, economically, and efficiently carry on the city's
operations;
(6) Financial and performance reports are being provided that disclose fairly,
accurately, and fully all information that is required by law or other established or
state criteria that is necessary to ascertain the nature and scope of programs and
activities, and that is necessary to establish a proper basis for evaluating the
results of programs and activities.
(c) Follow-up on audits. The City Auditor shall ensure accountability and
implementation of a continuous improvement process by an annual status report of prior
audit recommendations. Accordingly:
(1) Six (6) months after the transmittal of an audit report to the council, the City
Auditor shall request a status report on actions taken by appropriate officials in
response to the audit recommendations;
(2) The City Auditor may request additional periodic status reports, and conduct
follow-up review as needed;
(d) Report of irregularities. If the City Auditor detects apparent violation of law, or
apparent instances of misfeasance or nonfeasance by an officer or employee, or
information that indicates derelictions may be reasonably anticipated, the auditor shall,
after consultation with and advice from the city attorney, immediately report the
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irregularities to the appropriate authority, including the City Manager. If the irregularity is
criminal in nature, the auditor shall also notify the appropriate chief prosecuting
attorney.
(e) Contract auditors, consultants, and experts. Through appropriate procurement
requirements and within the limits of the adopted budget, the auditor may obtain the
services of certified or registered public accountants, qualified management
consultants, or other professional experts necessary to perform the auditor's duties.
(f) The City Auditor shall meet with the external auditors to discuss pertinent matters,
review the financial statements, auditors' opinions, and management letters resulting
from the annual financial audit.
(Ord. No. 029171, § 1, 8-23-2011)
Sec. 121/2-7. - Peer review.
(a) Authority statement. The City Auditor's Office shall within three (3) years of date of
this ordinance [Ordinance No. 0291711 be subject to peer review and thereafter not less
than once every three (3) years by a professional, non-partisan, objective person or
group, comprised of auditors and other professionals with appropriate government
auditing expertise and experience.
(b) Scope of peer review. The peer review shall determine compliance with
Government Auditing Standards and the quality of audit effort and reporting, including:
(1) General standards such as staff qualifications, due professional care, and
quality assurance;
(2) Fieldwork standards such as planning, supervision, and audit evidence;
(3) Reporting standards such as report content, presentation, and timeliness.
(c) Reporting. A copy of the written report of the peer review shall be furnished to each
member of the City Council after review and approval by the Council Administrtc
Audit Committee.
(d) Cost. The cost of the peer review, including reasonable travel and living expenses,
shall be paid from funds budgeted specifically in the City Auditor's budget.
(Ord. No. 029171, § 1, 8-23-2011)
Sec. 121/2-8. - City Auditor vacancy—Selection process.
(a) At such times when a vacancy occurs in the Office of the City Auditor, the first
principal assistant shall act in the capacity of City Auditor pending the appointment of a
new City Auditor.
(b) The council shall appoint an ad hoc nominating committee to recommend to the
City Council candidates for City Auditor. The committee shall consist of five (5)
members, including a chair and vice -chair selected by majority vote of members,
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meeting the following qualifications:
(1) Three (3) members shall be members of the City Council nominated by the
Council Adrv,inis rat ve Audit Committee.
(2) One (1) member shall be an at large City of Corpus Christi resident.
(3) One (1) member shall be the City Manager or his or her designee.
(c) The full committee shall, within fifteen (15) days of its appointment, hold its first
meeting to consider applicants to serve as City Auditor. Within ninety (90) days of its
first meeting, the committee shall recommend to the City Council three (3) candidates
selected by a majority of the committee members. The City Council shall, within fifteen
(15) days after receipt of the recommendation of three (3) candidates, select a City
Auditor.
(Ord. No. 029171, § 1, 8-23-2011)
SECTION 2. If for any reason any section, paragraph, subdivision, clause, phrase,
word or provision of this ordinance shall be held invalid or unconstitutional by final
judgment of a court of competent jurisdiction, it shall not affect any other section,
paragraph, subdivision, clause, phrase, word, or provision of this ordinance, for it is the
definite intent of this City Council that every section, paragraph, subdivision, clause,
phrase, word or provision of this ordinance be given full force and effect for its purpose.
SECTION 3. Publication shall be made in the official publication of the City of Corpus
Christi as required by the City Charter of the City of Corpus Christi.
J:1LISA12011 Ordinance\Auditor Ordinance Amendment v3 November 3.doc
That the foregoing ordinance was read for the fist time and passed to its second
reading on this the � day of �OUe,� , 2011, by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo
Kevin Kieschnick
Priscilla G. Leal
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
o
That the foregoing orgiriance w s read for the second time and passed finally on this
the day of NNQA�Q.(-- , 2011, by the following vote:
Joe Adame
Chris N. Adler
Larry Elizondo
Kevin Kieschnick
Priscilla G. Leal
J �^
PASSED AND APPROVED, this the i'3`r day of
David Loeb
John E. Marez
Nelda Martinez
Mark Scott
ATTEST:
1b).)-\1,o(Lr62u_
Armando Cha pa
City Secretary
APPROVED as to form: November 3, 2011
By:
Lisa Agu r, Assistant City Attorney
for the City Attorney
14C1 , 2011.
Joe Ad e
Mayor
J:ILISA12011 OrdinancelAuditor Ordinance Amendment v3 November 3.doc
029287
EFJ E ice"*
8
State of Texas
County of Nueces
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PUBLISHER'S AFFIDAVIT
CITY OF CORPUS CHRISTI
Ad # 5982153
PO #
Before me, the undersigned, a Notary Public, this day personally came
GEORGIA LAWSON, who being first duly sworn, according to law, says that she
is LEGAL SALES REPRESENTITIVE AND EMPLOYEE OF THE PUBLISHER,
namely, the Corpus Christi Caller -Times, a daily newspaper published at
Corpus Christi in said City and State, generally circulated in Aransas, Bee,
Brooks, Duval, Jim Hogg, Jim Wells, Kleberg, Live Oak, Nueces, Refugio, and
San Patricio, Counties, and that the publication of, NOTICE OF PASSAGE OF
ORD. NO.029287 Amen which the annexed is a true copy, was inserted in the
Corpus Christi Caller -Times on the 11/21/2011, 11/21/2011.
$ 67.65
1Time(s)
On this ir day o
LEGAL SALES REPRESENTIVE
2D 2-1 certify that the attached document
is a true and an exact copy made by publisher.
MICHELLE JOYCE CABRERA
My Commission Expires
March 19, 2016
Notary Public, State of Texas
CALLER TIMES « November 21 2011 4(.5E.
PASSAGE OF ORD ;:
NO.0292$i
Amending Ordinance i
No 02$1;71 regard-:
ling Olt Auditor;
establishing aOoun.
cif Audit `Committee;:
providing :for publico-
tion This ordinance
was passed and ap'
proved ori Nov `i5 `
2011..-
, /s/ Armando Chapa
City Secretary