City of Alexandria, Virginia
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MEMORANDUM
DATE: DECEMBER 7, 2021
TO: THE HONORABLE MAYOR AND MEMBERS OF CITY COUNCIL
FROM: MARK. B JINKS, CITY MANAGER /s/
DOCKET TITLE:
TITLE
Consideration of a Resolution Creating an Audit and Finance Subcommittee of City Council. [ROLL-CALL VOTE]
BODY
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ISSUE: Consideration of a resolution creating an audit and finance subcommittee of City Council.
RECOMMENDATION: That City Council: (a) approve the attached resolution (Attachment 1) creating a City Council Audit and Finance Subcommittee and (b) eliminate the current Audit Subcommittee and Pension Subcommittee as of the end of 2021.
BACKGROUND: City Council currently has both an Audit Subcommittee and a Pension Subcommittee. The purpose of the Audit Subcommittee has been to provide review and oversight of independent audit and the purpose of the Pension Subcommittee has been to review proposed changes to the City’s pension plans. With the upcoming changes to collective bargaining and the potential impact of collective bargaining on salaries and benefits like pension, combining these two committees into one overall Finance Subcommittee and expanding its role to include collective bargaining would allow the ability to consider and review pension, and compensation in a more comprehensive manner.
DISCUSSION: Staff recommends that City Council create an Audit and Finance Subcommittee to review and provide oversight for finance-related policies and practices. The current subcommittees are focused on financial reporting and benefits. Council does not currently have a subcommittee to consider other finance-related policies including tax policy. Adding a tax policy component to this subcommittee would allow Council to integrate their policy direction for employee compensation with the tax policies needed to support changes in compensation. Budget development and policies would remain in the purview of the entire City Council.
Responsibilities
The Audit and Finance Subcommittee would be responsible for:
• Reviewing the work of any independent accountants engaged for the purpose of preparing or issuing an independent auditor to perform other independent audits, review or attest services;
• Providing policy direction and guidance regarding employee compensation philosophy and collective bargaining policies; and
• Providing oversight and reviewing proposed changes to the City’s pension plans and provide guidance to the City’s pension committees as warranted.
Committee Structure
Staff recommends that the City Council appoint two members to the Audit and Finance Subcommittee and that the Subcommittee regularly meet with the City Manager, Finance Director, Chief Labor Relations Officer, The Chief Human Resources Officer, and the Internal Auditor as warranted to review and consider the policy and oversight duties of the Subcommittee. The Subcommittee members’ terms will coincide with their City Council terms. Members should:
1. Possess or obtain a basic understanding of governmental financial reporting and auditing;
2. Possess a basic understanding of compensation and tax policy
The City may provide additional training for Subcommittee members to ensure that these criteria are met.
Staffing and Advisors
Staffing for the Subcommittee will be provided by the City Manager’s Office, City Attorney’s Office and Human Resources for collective bargaining and the Finance Department for tax and audit considerations. The Subcommittee should be empowered to hire legal, financial, and other subject matter experts as required to perform its duties.
FISCAL IMPACT: No additional costs are currently contemplated due to the creation of the Audit and Finance Subcommittee and the elimination of the Audit Subcommittee and the Pension Subcommittee.
ATTACHMENT: Resolution
STAFF:
Laura B. Triggs, Deputy City Manager
Kendel Taylor, Finance Director