File #: 2023-0464    Version: 1 Name:
Type: Discussion Status: Agenda Ready
File created: 6/7/2023 In control: City Council
On agenda: 6/20/2023 Final action:
Title: CONSIDER THE ESTABLISHMENT OF THE CARSON FINANCE AND AUDIT COMMITTEE AND TO SET RULES AND PROCEDURES FOR THE COMMITTEE AS RECOMMENDED BY THE STATE CONTROLLER'S OFFICE (SCO)
Attachments: 1. EXHIBIT NO.1-Resolution Establishing Standing Finance and Audit Committee_Final
Date Ver.Action ByActionResultAction DetailsMeeting DetailsVideo
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Report to Mayor and City Council
Tuesday, June 20, 2023
Consent


SUBJECT:
Title
CONSIDER THE ESTABLISHMENT OF THE CARSON FINANCE AND AUDIT COMMITTEE AND TO SET RULES AND PROCEDURES FOR THE COMMITTEE AS RECOMMENDED BY THE STATE CONTROLLER'S OFFICE (SCO)

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I. SUMMARY

The State Controller's Office (SCO) had reviewed the City of Carson's internal control system for the fiscal periods of July 1, 2018, through June 30, 2020, to determine the adequacy of the City's controls for conducting operations, preparing financial reports, safeguarding assets, and ensuring proper use of public funds.

The SCO's Report of February 8, 2023 noted that deficiencies were found in the City's internal control system. The Report also found that the City does not have an established audit committee to address these deficiencies and further recommended that the audit committee should be formally established through a City resolution.

As stated in the SCO's report, "The purpose of an audit committee is to oversee all aspects of the financial reporting process, including preparation and filing of financial statements, internal control over financial reporting, and related risks. An audit committee's major areas of responsibility include oversight of the internal control system, oversight of the internal audit function and external auditors, review of financial filings, and establishment and oversight of a 'whistleblower' process."
The proposed action would accept this recommendation of the SCO and adopt a resolution to implement it by formally establishing a standing Finance and Audit Committee.


II. RECOMMENDATION
Recommendation

ACCEPT the SCO's recommendation to establish a standing audit committee and ADOPT Resolution No. 23-105, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARSON, CALIFORNIA, ESTABLISHING A STANDING FINANCE AND AUDIT COMMITTEE."

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III. ALTERNATIVES


TAKE another action as deemed appropriate by the City Council.


IV. BACKGROUND...

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