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HomeMy WebLinkAboutItem 4.3 - 3308 Ad-Hoc Audit Review Committee (2) Page 1 of 2 STAFF REPORT CITY COUNCIL DATE: July 21, 2020 TO: Honorable Mayor and City Councilmembers FROM: Linda Smith, City Manager SUBJECT: Appointments to the City Council 2020 Ad-Hoc Audit Review Committee Prepared by: Lisa Hisatomi, Director of Administrative Services EXECUTIVE SUMMARY: The City’s independent auditor, Badawi and Associates, has commenced the field work necessary to complete the Comprehensive Annual Financial Report for the fiscal year ending June 30, 2020. The City Council will consider the establishment of an Ad-Hoc Committee, made up of two City Councilmembers, who will review the audit process and final report with the auditors. STAFF RECOMMENDATION: Confirm the Mayor’s Recommendation of Councilmembers Josey and Kumaga i as the 2020 Ad-Hoc Audit Review Committee. FINANCIAL IMPACT: The cost of the audit was included in the Fiscal Year 2020-21 adopted budget. DESCRIPTION: The independent auditors from the firm of Badawi and Associates are required to follow protocols established by the Governmental Auditing Standards Board and issue their directives in documents referenced as the Statement on Accounting Standards, which are applicable to both private and governmental entities. These standards require that the auditors communicate directly with those charged with governance. The Ad-Hoc Audit Review Committee, consisting of two Councilmembers appointed by the Mayor, is established each year for this purpose. After the Committee has had an opportunity to review and discuss the report with the auditors, at a future City Council meeting, Staff will prepare an agenda item for action by the entire City Council. Last year, Councilmembers Josey and Kumagai served on the Committee. Mayor Haubert has recommended the re-appointment of Councilmembers Josey and Kumagai to serve as the 2020 Ad-Hoc Audit Review Committee. Page 2 of 2 STRATEGIC PLAN INITIATIVE: None NOTICING REQUIREMENTS/PUBLIC OUTREACH: None ATTACHMENTS: None.