2004-06 Creates Audit Committee & Sets Forth DutiesORDINANCE 06-2004
• AN ORDINANCE OF THE VILLAGE COUNCIL OF THE VILLAGE OF NORTH PALM
BEACH, FLORIDA, CREATING AN AUDIT COMMITTEE; PROVIDING FOR ITS
COMPOSITION, TERMS AND VACANCIES; PROVIDING FOR ORGANIZATION;
SETTING FORTH THE DUTIES AND RESPONSIBILITIES OF THE BOARD; PROVIDING
FOR REMOVAL; PROVIDING FOR ACCESS TO RECORDS AND ADMINISTRATIVE
SERVICES; PROVIDING FOR SEVERABILITY; PROVIDING FOR THE REPEAL OF ALL
ORDINANCES OR PARTS OF ORDINANCES IN CONFLICT HEREWITH; AND,
PROVIDING FOR AN EFFECTIVE DATE.
BE IT ORDAINED BY THE VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA:
Section 1. Created. An Audit Committee (hereinafter referred as The Committee) for the
Village is hereby created.
Section 2. Composition; Terms; Vacancies.
(a) Composition. The Audit Committee shall consist of five (5) members and
two (2) alternate members. The membership of the Audit Committee shall
consist of a member of the Village Council, Village Manager or Assistant
Village Manager, and three (3) Village residents with educational and/or
practical experience in the fields of finance or business.
(b) Terms. The Village Council shall appoint the Council member on an
annual basis during April of each year to take effect the following May 1
of each year. At the first appointment of the three (3) resident members,
one (1) member shall be appointed for a term of three (3) years; one
member shall be appointed for a term of two (2) years; and one member
shall be appointed for one (1) year. Thereafter, resident members shall be
appointed for terms of three (3) years. Alternate members shall be
appointed on the same day that regular members are appointed and on an
annual basis during April of each year to take effect the following May 1
of each year and shall have the duty to sit for any regular member that is
absent, including the member Councilman and the Village Manager or
Assistant Village Manager. Alternate members shall be appointed as first
• alternate and second alternate and shall serve in that order when required.
The members shall serve at the pleasure of the Village Council.
(c) Vacancies. An appointment to fill any vacancy shall be for the remainder
of the unexpired term of office.
Section 3. Organization. At the first organizational meeting of the Committee, the members
shall elect a chairman and vice chairman from among its members. Subsequent to the initial
organizational meeting where officers are elected, the members shall elect the officers from
among its members at the first regular meeting in May of each year. The chairman of the
Committee shall always be one of the Village resident members. The presence of three (3)
members shall constitute a quorum, and motions shall be approved by a majority of members
present. The members shall serve without compensation. All meetings of the Audit Committee
shall be held at Village Hall, 501 U.S. Highway One, North Palm Beach, Florida, and shall be
open to members of the public.
Section 4. Duties. The Audit Committee shall have the following duties and responsibilities:
(1) The primary responsibility of the Audit Committee shall be to oversee and
monitor the independent audits of the Village's financial statements from
the selection of the independent auditors to the resolution of audit
findings.
(2) The Audit Committee shall facilitate communication between the Village
Manager's office, the independent auditors and the Village Council.
(3) The Audit Committee shall serve as an advisor to the Village Council.
(4) The Audit Committee shall present on an annual basis a written report to
the Village Council which shall show how the committee has discharged
its duties and met its responsibilities. The written report shall include its
findings as to the independent audits of the Village's financial statements.
Section 5. Removal. If a member of the Audit Committee or a designated alternate of the
Committee is absent from three (3) regularly-scheduled meetings of the Committee within any
twelve (12) consecutive month period without such absence being excused by majority vote of the
• Committee, the chairman shall promptly notify the Village Council. The Council may thereafter
declare the member's office vacant and promptly fill such vacancy for the unexpired term of office.
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Section 6. Access to Records. The Audit Committee shall have access to the reports of any
internal auditors, as well as access to any annual internal audit work plans.
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Section 7. Administrative Services. The Village Manager shall provide administrative
services to the Audit Committee, including personnel for the taking and transcribing of minutes
of Audit Committee meetings.
Section 8. If any section, paragraph, sentence, clause, phrase or word of this Ordinance is for
any reason held by a Court to be unconstitutional, inoperative or void, such holding shall not
affect the remainder of this Ordinance.
Section 9. All Ordinances or parts of Ordinances in conflict herewith are hereby repealed.
Section 10. This Ordinance shall take effect immediately upon passage.
PLACED ON FIRST READING THIS 25th DAY OF MARCH, 2004.
PLACED ON SECOND, FINAL READING AND PASSED THIS 8th DAY OF APRIL, 2004.
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