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File #: 19-562    Version: 1 Name:
Type: Consent Calendar Status: Passed
File created: 4/30/2019 In control: Council and Authorities Concurrent Meeting
On agenda: 7/9/2019 Final action: 7/9/2019
Title: Action on a Resolution adopting an Internal Audit Charter for the City Auditor's Office
Attachments: 1. Resolution, 2. Internal Audit Charter, 3. Resolution No. 19-8730
REPORT TO COUNCIL
SUBJECT
Title
Action on a Resolution adopting an Internal Audit Charter for the City Auditor's Office

Report
BACKGROUND
The City Council has three appointed positions: City Manager, City Attorney and City Auditor. Historically, the duties of the appointed City Auditor were assigned to a voter elected City Clerk, commingling an elected position with no required reporting relationship to the City Council, with a City Council appointed position that has direct accountability to the City Council. Additionally, the City Auditor's duties only included auditing and approving all bills, invoices, payrolls, demands or charges against the City government before payment (City Charter, section 909).

On June 26, 2018, the City Council voted to move the position of the City Auditor to the Finance Department and assigned the responsibilities to the Assistant Finance Director. The Assistant Finance Director serves as the City Auditor and Santa Clara Stadium Authority Auditor. These actions corrected the misalignment in governance structure of an elected City Clerk serving concurrently as a Council Appointee. The City Council also voted to expand the duties of the City Auditor to perform financial, operational and performance audits for the City (Ordinance 1982). It empowered the City Auditor to conduct audits and make recommendations to strengthen accountability and improve efficiencies and effectiveness of City programs and business processes. The City Auditor is also responsible for managing the annual financial audit contracts for the City and Santa Clara Stadium Authority.

DISCUSSION
The City does not currently have a formal Internal Audit Charter that defines the City Auditor's purpose, authority and responsibilities within the City. This is due to the absence of an internal audit function within the City. The purpose of the Internal Audit Charter, which requires the Council's approval, is to formally establish the City Auditor's position within the o...

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