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�� �� �� ��i 4� 4� 4� 5� 5] 5? �� 5� 5� �� �? With these changes, it could be demonstrated that the there is a public benefit for having the comprehensive City update and training event. The meal and recognition items could be scheduled to be a part of this event. Based on conversations with the City Auditor, if the City implemented these changes it would no longer receive an audit finding for employee recognition events. Audit Committee Considerations As noted above, some members of the Council have inquired about the value of creating an audit committee, specifically to address any audit findings and to ensure that there is direct access between the City Council and the City Auditor. Typically, a government audit committee consists of a subset of the Council and would include individuals that posses an understanding of governmental financial reporting an auditing. In addition, an audit committee is typically formed in conjunction with established roles and personal responsibility, and should annually report to the full Council on how it has discharged its duties. �� While a formally established Audit Committee could address financial reporting or auditing �9 concerns, Staff is suggesting an alternative approach that would accomplish the same without b� creating additional bureaucracy. 6] 6? �a 6� �� �if� b� 6� �� It is suggested that the following changes be made to the City's annual auditing procedures: 1� Establish a pre-audit meeting between the Council and City Auditor to discuss any general inquiries or on-going concerns. 2� Maintain the current annual audit presentation by the City Auditor before the Council; typically in May of each calendar year (** note ** tk�is is the current practice). 3� Establish a post-audit presentation meeting between the Council and Staff to determine whether any operational changes are needed. �� 7l With these proposed changes, the Council will have largely performed the same role as they 7� would under an Audit Committee. The advantage however, is that the �ull Council remains 7� equally informed and engaged in the City's fiscal affairs. Certainly if the Council determines r� that this structure and format is inadequate, further changes could be made in the future. 75 7�a �� �$ �� 8t� $2 S? R� �� 8� �� �� Final Comments It should be noted that many government advisory and oversight agencies such as the Government Finance Officers Association, and the Office of the State Auditor would generally recommend that municipalities create a formal audit committee or its equivalent. However there are practical limitations that should also be considered. As noted above, Audit Committee Members need to possess an understanding of governmental financial reporting and auditing standards. In most cases, this will require some amount of on- going educational and training efforts on the part of committee members. It will also require an additional time commitment. That being said, t'he importance of fiscal oversight cannot be overstated. It is for these reasons that Staff is suggesting the alternative approach detailed above. — �