[HISTORY: Adopted by the City Council of the City of Warren 4-15-2013 by Ord. No.
1826. Amendments noted where applicable.]
The purpose of the Finance Committee is to provide independent
fiscal oversight, which includes budgeting and financial planning,
financial reporting, and the creation and monitoring of internal controls
and accountability policies. In addition, the Committee is to oversee
the selection of independent auditors and is to provide a forum separate
from management in which auditors and other interested parties may
candidly discuss concerns.
A.
The Finance Committee shall be composed of three members appointed
by a majority of Council, at least one of which must be a member of
City Council, and all three of which should have a basic understanding
of governmental financial reporting and auditing.
B.
If possible, at least one member of the Finance Committee shall,
through education and/or experience, possess an understanding of generally
accepted accounting principles (GAAP) and financial statements; have
experience in preparing or auditing financial statements relevant
to the government sector; possess experience in applying GAAP in connection
with accounting for estimates, accruals and reserves; have experience
with internal accounting controls; and have an understanding of Finance
Committee functions.
C.
The term of any Council member shall be for one year, expiring on
December 31 of each year, and the terms of the remaining members shall
be for three years, expiring on December 31, or until their successors
are appointed and qualified.
D.
Any committee member who is absent without prior permission from
the Chair for more than two meetings in any one-year period shall
be considered no longer active, and the position shall be deemed vacant.
In such event, a new member shall be appointed by Council to complete
the vacated term.
The Committee shall be responsible to:
A.
Provide direction for Council regarding fiscal responsibility.
B.
Regularly review the City's revenues and expenditures, balance
sheet, investments and other matters related to the City's continued
solvency.
C.
Assist in the development of and approve the annual budget and submit
it to Council for approval.
D.
Ensure the maintenance of an appropriate capital structure.
E.
Oversee the maintenance of City assets, including prudent management
of investments.
F.
Ensure that policies and procedures for financial transactions are
documented, reviewed and updated as necessary, and ensure that such
policies are being followed.
G.
Recommend to Council an independent firm of certified public accountants
qualified to perform the annual audit of the City.
H.
Analyze and report to Council significant findings in the annual
audit report and make recommendations regarding such findings.
J.
Review component unit information as necessary in relation to the
City's annual financial report and make recommendations to Council.
K.
Perform similar duties for the City's pension committees, if
requested to do so by such committees.
The Committee shall submit copies of the minutes of its meetings
to City Council. Reports or recommendations of the Committee shall
be considered advisory in nature and shall not be considered binding
on the Mayor or City Council or on any of the City's pension
committees.