§ 2-122. Independence, objectivity, and audit standards  

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  • The organization and administration of the auditor's office shall be sufficiently independent to assure that no interference or influence shall adversely affect an independent and objective judgement of the auditor. Accordingly, the following shall apply:

    (1) The office shall be provided a budget sufficient to carry out the responsibilities and functions established in this chapter.

    (2) The city auditor shall establish an organizational structure appropriate to carrying out the responsibilities and functions of this chapter.

    (3) No person shall be appointed to the position of city auditor who has been mayor, councilmember, or city manager of the city during a period of five (5) years prior to the date of the city auditor's appointment. In no case shall the city auditor be related, by affinity or consanguinity within the second degree, to the mayor, any councilmember, or the city manager.

    (4) Neither the city auditor nor any member of the office shall conduct or supervise an audit of an activity for which they were responsible.

    (5) The city auditor shall adhere to government auditing standards when performing the duties of city auditor and will be independent as defined by those standards.

    (6) In order to maintain adherence to the independence provisions of said government auditing standards, the responsibility for selection of audit areas shall reside with the city auditor, with due consideration for the interests and concerns of the city council. To accomplish this:

    a. No less than thirty (30) days prior to the beginning of each fiscal year, the city auditor shall submit an annual audit plan to the city council for review, approval, and comment. The plan shall include identification of the scope of each audit to be conducted within the next fiscal year, in terms of the organizations, services, programs, functions, and activities to be audited and in terms of the potential audit elements to be addressed;

    b. The annual audit plan may be amended during the year, following notification to the council and due provision for comment. Such amendments may be initiated by the city auditor, or requested by the city council, or city manager. Results of special audits shall be distributed in the same manner as all other audit reports, as provided in § 2-125 (Release of reports) of this chapter.

    c. If the city auditor determines there is serious concern regarding fraud, abuse, or illegality, or that the scope of an audit in progress should be expanded as the result of any findings, the city auditor is authorized to initiate spontaneously and conduct, or expand the scope of, an audit beyond that approved in the work program. Pursuant to the Texas Open Meetings Act, the city auditor shall notify city council of the change at the first available regularly scheduled council meeting after the city auditor has verified the concern is material. The level for materiality is five thousand dollars ($5,000.00) for these purposes.

    (7) The city council shall appoint the city auditor, who shall serve at the pleasure of the council. There shall be such assistant city auditors and other staff that may be authorized by the council and appointed by the council on the recommendation of the city auditor and who shall serve at the pleasure of the city auditor.

    (8) Neither the city manager nor city council shall in any manner dictate the removal of any employee whom the city auditor has employed.

(Ord. No. 96-83, § 2, 9-12-96; Ord. No. 14-021, § 2, 4-1-14 )