HomeMy WebLinkAboutReso. 2026-009 - Establishing an Audit CommitteeWHEREAS, the City Council desires to strengthen financial oversight, transparency, accountability,
and risk management through the establishment of an Audit Committee; and
WHEREAS, an Audit Committee provides a forum to review internal and external audit activities,
recommend improvements, and ensure appropriate follow-up on findings;
NOW, THEREFORE, BE IT RESOLVED by the City Council that an Audit Committee is hereby
established with the following authority, purpose, composition, and operating provisions:
1. Authority
The Audit Committee is established by and derives its authority from the City Council. The Committee
serves in an advisory capacity to the City Council and has no independent decision-making authority
unless expressly delegated by Council action. The Committee may request information, presentations,
and reports from City management, internal audit staff, and external auditors as necessary to fulfill its
responsibilities.
2. Purpose
The purposes of the Audit Committee are to (1) enhance the integrity, transparency, and effectiveness
of the City's financial reporting, internal controls, and audit processes, (2) provide direction and
guidance regarding internal audit function topic considerations, review findings, and when necessary
review and discuss process improvements, (3) review external audit service contracts, including scope,
vendor selection, performance, and results, (4) facilitate communication among the City Council,
management, internal auditors, and external auditors; and (5) promote best practices in governance,
risk management, and financial accountability.
3. Composition and Membership
The Audit Committee shall consist of two (2) voting members, one alternate voting member, and up to
two (2) non-voting members. The voting members shall be the Mayor and Vice, who shall serve ex
officio. The alternate member shall be the mayor pro tempore, who shall also serve ex officio.
In addition to the Mayor and Vice Mayor, up to two (2) advisory, non-voting members may be
appointed to the committee by the Council. Non-voting members will be selected from the public and
provide for continuity and institutional knowledge. The Mayor and Council will, to the extent practical,
appoint members who possess (1) experience or education in accounting, auditing, finance, public
administration, risk management, or a related field, (2) an understanding of governmental or public
sector financial practices, (3) the ability to analyze complex financial and audit information, and (4) a
commitment to ethical standards, objectivity, and the public interest.
Non-voting members shall serve staggered two (2) year terms. All non-voting members must be
nominated by the Mayor and appointed by vote of the Council, except that in 2026, one (1) of the two
(2) non-voting members shall be nominated by the Vice Mayor to serve a one (1) year term, in order
to allow for proper staggering.
Non-voting members shall comply with applicable ethics laws, conflict-of-interest requirements, and
disclosure obligations and may be required to complete ethics, audit, or governance -related training as
determined by the City. In addition to complying with all applicable conflict of interest laws, members
shall not have any financial or business relationship with the City that would impair independence.
4. Staffing
The City Manager and Director of Finance, or their designees, shall attend Committee meetings and
ensure staff availability to support Committee work to provide information regarding audit results and
financial information. The Committee, however, shall not have authority to direct staff, and any
Committee requests that may require the use of City resources shall be referred to the City Council.
5. Reporting
The Audit Committee shall report its observations, recommendations, and activities to the City Council
on a regular basis, or as otherwise requested by the Council, and recommend to City Council acceptance
of Annual Comprehensive Financial Report (ACFR) and external audit results.
I HEREBY CERTIFY that the foregoing resolution was introduced and adopted at a regular meeting of
the City Council of the City of Redding on the 3rd day of February, 2026, by the following vote:
AYES. COUNCIL MEMBERS. - AUDETTE, DRANUKA, MUNNS, RESNER, AND MUNNS
NOES: COUNCIL MEMBERS: - NONE
ABSENT- COUNCIL MEMBERS- - NONE
ABSTAIN: COUNCIL ME MBERS- - NONE
MIKE LITTAU, Mayor
ATTEST: FORMAPPROVED:
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AHARL�ENE "TIPTON, City Clerk CHRISTIAN M. CURTIS, City Attorney