A. Creation: There is hereby created the Draper City Audit Committee to advise the city council on the annual audit of the city's financial statements, and to recommend and monitor the annual auditing functions.
B. Purpose: The audit committee shall:
1. Follow the city's procurement code to select and engage an auditor to audit the city's annual financial statement;
2. Provide oversight of the integrity of the city's financial statements, the internal control over the financial reporting process, and compliance with legal and regulatory requirements; and
3. Follow up on auditor findings and management letter comments provided by independent auditors.
C. Members: The audit committee shall consist of three members.
1. Two members shall be members of the city council.
2. One member shall be a financial expert, possessing:
a. An understanding of generally accepted accounting principles and financial statements for state and local governments;
b. Experience in preparing or auditing financial statements of comparable entities;
c. Experience in applying such principles in connection with accounting for estimates, accruals, and allowance accounts;
d. Experience with internal accounting controls; and
e. An understanding of audit functions.
3. Term: Members of the audit committee shall be appointed by the mayor with the advice and consent of the city council for terms of two years and may not be appointed to more than two full consecutive terms; provided, however, that when the audit committee is first established, the terms of the members shall be staggered and one member shall be appointed to serve an initial term of three years.
4. Chairperson: The city council shall appoint one of the two city council members on the audit committee as chairperson.
D. Meetings: The audit committee shall meet as often as necessary in order to adequately advise the city council concerning selection of the external auditor, the review of the annual financial statement audit, and other items under their oversight. (Ord. 1493, 6-15-2021)