Richmond Municipal Code Ch. 2.74 Internal Auditor

The City Council shall appoint the Internal Auditor who shall serve at its pleasure. The Internal Auditor shall be certified according to standards comparable to a certified public accountant or a certified internal auditor at the time of appointment.

(Ord. No. 1-05 N.S., § I, 1-4-2005)

The Internal Auditor shall conduct all work in accordance with governmental auditing standards as issued by the United States General Accounting Office and shall have the following powers and duties:

(a) Conduct or cause to be conducted audits of the fiscal transactions and accounts kept by, or for, the City. Such audits shall include, but not be limited to, the examination and analysis of fiscal procedures; the examination, checking, and verification of accounts and expenditures; and accordingly shall include tests of the accounting records and other accounting procedures as may be considered necessary under the circumstances.

(b) Conduct performance audits, as assigned by the City Council. A "performance audit" means a post audit which determines with regard to the purpose, functions, and duties of the audited agency all of the following:

(1) Whether the audited department, office, or agency is managing or utilizing its resources; specifically whether public funds, personnel, property, equipment, and spaces are being used in an efficient and economical manner.

(2) Causes of inefficiencies or uneconomical practices; including inadequacies in management information systems, internal and administrative procedures, organizational structure, use of resources, and allocation of personnel, purchasing policies, and equipment.

(3) Whether the desired results are being achieved.

(4) Whether objectives established by the Council or other authorizing body are being met.

(c) Conduct special audits and investigations, as assigned by the City Council. "Special Audits and Investigations" mean assignments of limited scope, intended to determine:

(1) The accuracy of the information provided to the City Council.

(2) The costs and consequences of recommendations made to the City Council.

(3) Other information concerning the performance of City departments, offices, or agencies as requested by the City Council.

(d) The Internal Auditor shall have access to, and authority to examine any and all documents including, but not limited to: books, accounts, internal memoranda, writings and tapes, reports, vouchers, correspondence files and other records, bank accounts, money and other property of any City department, office, or agency, whether created by the City Charter or otherwise.

(e) Prepare and submit to the City Council quarterly reports of the Internal Auditor's activities and findings in the immediately preceding three (3) calendar months, together with any recommendations to improve the administration of the City.

(f) Perform other auditing functions, consistent with other provisions of this chapter, and prepare and submit other such reports as may be assigned by the City Council.

(Ord. No. 1-05 N.S., § I, 1-4-2005)

The Internal Auditor may appoint and prescribe the duties of the professional, technical, and clerical employees employed in the Office of the Internal Auditor; provided that the Internal Auditor shall not appoint to any position any business associate or any person related to him or her or to the City Manager or to any member of the City Council by blood or marriage within the third degree, except that the foregoing prohibition against nepotism may be waived by a vote of at least two-thirds (2/3) of the members of the City Council if the City Council finds that the proposed appointment is in the interest of the City. All such appointees shall serve at the pleasure of the Internal Auditor in the unclassified service; and shall serve under such terms and conditions, salaries, and benefits as are similar to other unclassified employees.

(Ord. No. 1-05 N.S., § I, 1-4-2005)

It shall take a vote of at least two-thirds (2/3) of the members of the City Council to remove the Internal Auditor from office. Should the Internal Auditor be removed from office, the City Council shall report this fact and the reasons for removal in writing in a report to the public.

(Ord. No. 1-05 N.S., § I, 1-4-2005)

(a) There is hereby established a professional audit advisory committee to advise in the selection of the City's independent auditor to perform the annual financial audit and the resolution of audit findings.

(b) The Professional Audit Advisory Committee shall consist of five (5) members selected as follows:

(1) One (1) representative of the Richmond City Council (one City Councilmember) appointed by the City Council.

(2) One (1) representative of the City Manager.

(3) Three (3) members of the professional public with expertise and experience in accounting, auditing, financial reporting, and finance needed to understand and resolve issues raised by the independent audit of the City's financial statements. The three (3) public members shall be appointed by the City Council after a review of the applications by not fewer than three (3) local government auditors or members of the Bay Area Local Government Auditors group or the National Association of Local Government Auditors.

(c) The primary responsibilities of the Audit Committee are:

(1) To monitor the independent audit of the City of Richmond from the selection of the Independent Auditor to the resolution of the audit findings.

(2) To monitor reports of the Internal Auditor, have access to the annual internal audit work plan, and review resolution of internal audit findings.

(3) To report, in writing, at least annually to the Richmond City Council and the City Manager, of how it discharged its duties and met its responsibilities. Said report shall be made public."

(Ord. No. 1-05 N.S., § I, 1-4-2005)