In 2006, Denver voters changed the City and County of Denver’s Charter to improve and streamline the City’s financial structure while enhancing the all-important “check and balance” oversight role of the Auditor. This Charter change, effective January 1, 2008, included the establishment of a truly independent Audit Committee.
The previous City audit committee lacked independence because all members were appointed by the Mayor and they included employees of the City Administration. That audit committee structure was not aligned with nationally accepted standards and best practices. However, the current Audit Committee is structured in a manner that ensures the independent oversight of City operations, thereby enhancing citizen confidence and avoiding any appearance of a conflict of interest.
The Audit Committee assists the Auditor in the Auditor’s oversight responsibilities of the integrity of the City’s finances and operations, including the integrity of the City’s financial statements.
The Audit Committee is chaired by the Auditor and consists of the Auditor and six other members; two of whom are appointed by the Mayor, the City Council, and the Auditor, respectively. With the exception of the Auditor, no member of the Committee may hold any other office or employment with the City while serving on the Committee. Members of the Audit Committee are appointed on the basis of education or experience in accounting, auditing, financial management, or related fields of expertise.
The Audit Committee meets at least once a month.
RESPONSIBILITIES
Internal Audit
The Audit Committee receives the results of the internal audits conducted by the Auditor. In receiving these results, the Audits are made available to the public, the Mayor, City Council and other officials. These audits are posted to the Auditor’s website. As a part of this process, the Audit Committee acts as a forum for communication between the Mayor and his administration and the Internal Auditors.
External Audit
The Audit Committee annually commissions and oversees an independent external audit of the finances of the City. This audit is known as the Comprehensive Annual Financial Report (CAFR). The Committee communicates findings and recommendations of the external auditor to the Mayor, Chief Financial Officer, City Council and to the general public.