The City Council must establish an auditing committee to arrange audits of the administration and finances during the years of the council’s term (Section 121 of the Local Government Act).
The duties of the Auditing Committee are specified in the Local Government Act. The Auditing Committee prepares matters regarding administration and finances for the decision of the City Council, such as auditor selection, processing of the audit report, statement on the acceptability of the financial statement, and the granting or refusal of discharge from liability.
The Auditing Committee annually prepares an assessment report, which is processed by the City Council in May. The report assesses the city’s financial statement and the realisation of the operative and financial goals. The assessment report also specifies the committee’s view on the profitability of the city’s operations and the appropriate organisation of the city’s services. The committee handles the consolidation of the audits of the municipality and its affiliated corporations. The Auditing Committee also estimates the actual balancing of the finances during the financial period and the sufficiency of the financial plan and action programme if the municipality’s balance includes an uncovered deficit.
The committee monitors the implementation of the auditing plan and can also issue instructions to the auditor, as required by the Local Government Act, and request for clarification. If the auditor’s report includes a reminder, the committee will obtain clarifications from the parties in question and a statement from the City Board.
In addition to the assessment report, the Auditing Committee provides the City Council with its statement on the monitoring report and monthly report.