HomeMy WebLinkAboutO-12351J-03-181
4/10/03
ORDINANCE NO. 12351
AN ORDINANCE OF THE MIAMI CITY COMMISSION
AMENDING CHAPTER 2, ARTICLE IV, OF THE CODE
OF THE CITY OF MIAMI, FLORIDA, AS AMENDED,
ENTITLED "ADMINISTRATION, DEPARTMENTS," BY
REPEALING, IN ITS ENTIRETY, DIVISION 13
ENTITLED "DEPARTMENT OF INTERNAL AUDIT AND
REVIEWS," CONSISTING OF SECTIONS 2-526
THROUGH 2-532, AND SUBSTITUTING IN LIEU
THEREOF A NEW DIVISION 13, ENTITLED "OFFICE
OF INDEPENDENT AUDITOR GENERAL," CONSISTING
OF NEW CODE SECTIONS 2-526 THROUGH 2-531, TO
ESTABLISH THE RESPONSIBILITIES AND OPERATING
PROCEDURES OF THE IAG, TO PROVIDE FOR
APPOINTMENT AND QUALIFICATIONS, DUTIES AND
POWERS, STAFFING, AND SPECIAL ASSIGNMENTS
RELATED TO THE IAG, GRANTING THE CITY
COMMISSIONERS, MAYOR, CITY MANAGER, CITY
CLERK AND CITY ATTORNEY THE AUTHORITY TO
REQUEST THE IAG TO PERFORM AUDITS; FURTHER
PROVIDING THAT THE PROVISIONS CONTAINED IN
THIS ORDINANCE SHALL BECOME OPERATIVE
SIMULTANEOUSLY UPON THE APPOINTMENT OF THE
INDEPENDENT AUDITOR GENERAL ("IAG");
CONTAINING A REPEALER PROVISION AND A
SEVERABILITY CLAUSE AND PROVIDING FOR AN
IMMEDIATE EFFECTIVE DATE.
WHEREAS, the Office of Independent Auditor General exists
pursuant to the City of Miami Charter, Section 48, as adopted by
referendum; and
12351
WHEREAS, the City of Miami currently maintains the
Department of Internal Audits and Reviews as established by the
Code of the City of Miami, Florida; and
WHEREAS, the funding of two audit offices is duplicative,
wasteful, and an inefficient use of City of Miami resources; and
WHEREAS, it is the decision of the City Commission to
abolish the Department of Internal Audits and Reviews, and
simultaneously assigning its duties, functions, and
responsibilities to the Office of Independent Auditor General;
and
WHEREAS, the City Commission wishes to grant the Mayor and
the City Manager the authority to request the Independent Auditor
General to perform audits of any City department or City program;
NOW, THEREFORE, BE IT ORDAINED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to
this
Ordinance are
adopted by reference and
incorporated
as if
fully set forth in
this Section.
Section 2. Division 13, consisting of Sections 2-526
through 2-532, of Chapter 2, Article IV, of the Code of the City
of Miami, Florida, pertaining to the Department of Internal
Audits and Reviews, is repealed in its entirety.
Page 2 of 6
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Section 3. New Division 13, consisting of Sections 2-526
through 2-532, of Chapter 2, Article IV, of the Code of the City
of Miami, Florida, as amended, is substituted in lieu thereof to
set forth the duties, functions, and responsibilities of the
Independent Auditor General in the following particulars:
"CHAPTER 2
ADMINISTRATION
ARTICLE IV. DEPARTMENTS
DIVISION 13. OFFICE OF INDEPENDENT AUDITOR GENERAL
Sec. 2-526. Responsibility of the Independent
Auditor General.
Notwithstanding any provision in the Code to the
contrary, the office of Independent Auditor General
(IAG) shall perform, in addition to the duties
specified in the City of Miami Charter, Section 48, the
management, supervision, and control of the internal
audit functions for the City of Miami.
Sec. 2-527. Appointment, qualifications of the
Independent Auditor General.
The City Commission shall appoint the IAG pursuant
to City of Miami Charter, Section 48(b), who shall be
qualified by education, and have broad experience in
auditing, accounting, and management.
Sec. 2-528. Duties and powers of the Independent
Auditor General.
(a) The IAG, subject to the control and direction of
the City Commission, as provided by the City of
Miami Charter, Section 48(c), and upon requests
from the Mayor or the City Manager, shall be
empowered to perform all internal audit functions.
(b) The IAG shall file written reports, in accordance
with the City of Miami Charter, Section 48(c),
with the City Commission reporting the results of
Page 3 of 6 12351
individual audits undertaken in conformity with
the above direction. The City Commission may
authorize a copy of the written reports to the
City Manager. Said reports shall, at a minimum,
state:
(1) the subject of the audit;
(2) the findings of the audit; and
(3) the recommendations for action as a result of
the audit, if any.
(c) The IAG shall file the Annual Audit Report within
thirty days from the end of the third quarter of
the current fiscal year.
Sec. 2-529. Staffing.
The IAG shall be staffed by such professional
assistants and support personnel as shall be designated
by the IAG and as are approved in the City's annual
budget, as may be amended from time to time by the City
Commission.
Sec. 2-530. Operating procedures and
responsibilities.
(a) Audits to be performed by the IAG shall be
requested by the City Commission, or any member of
the City Commission, at a City Commission meeting.
(b) Audits to be performed by the IAG of any city
department and or program may be requested by the
Mayor, with the consent of the City Commission.
The request by the Mayor shall be made at City
Commission meetings.
(c) The City Manager, City Clerk, or City Attorney may
request, in writing, an audit to be performed by
the IAG, of any department they respectively
supervise. Prior to conducting such an audit:
(1) the requestor(s) of such audit(s) shall cause
the request(s) to appear on the next
scheduled City Commission meeting agenda; and
(2) the audit request(s) shall be deemed approved
by the City Commission, unless a motion to
the contrary is raised by a City
Page 4 of 6
35
Commissioner, followed by a majority vote to
decline the request(s).
Sec. 2-531. Special assignments.
The IAG, subject to specific authorization and
direction by the City Commission, is authorized to
execute special audits and assignments in matters not
expressly set forth herein including, but not limited
to.
(1) assistance to any independent auditor of the City;
and
(2) cooperation with the Miami Audit Advisory
Committee.
Section 4. The provisions contained in this Ordinance
shall become operative simultaneously upon the appointment of the
Independent Audit General.
Section 5. All ordinances or parts of ordinances insofar
as they are inconsistent or in conflict with the provisions of
this Ordinance are repealed.
Section 6. If any section, part of section, paragraph,
clause, phrase or word of this Ordinance is declared invalid, the
remaining provisions of this Ordinance shall not be affected.
Page 5 of 6 12351
Section 7. This Ordinance shall become effective
IMMEDIATELY after final reading and adoption thereof.11
PASSED ON FIRST READING BY TITLE ONLY this 27th day of
February , 2003.
PASSED AND ADOPTED ON SECOND AND FINAL READING BY TITLE ONLY
this 10th day of April , 2003.
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ATTEST:
PRISCILLA A. THO PSON
CITY CLERK
APPROVE�'/EO FP<M AND CORRECTNESS:
AbEJAN)DRO VILARELLO
CIT!ATTORNEY
418:RCG:dd:BSS
li This Ordinance shall become effective as specified herein unless
vetoed by the Mayor within ten days from the date it was passed
and adopted. If the Mayor vetoes this Ordinance, it shall become
effective immediately upon override of the veto by the City
Commission or upon the effective date stated herein, whichever is
later.
Page 6 of 6 12351
Second Reading Ordinance
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Honorable May d March 5, 2003
TO: bers of a City omnis DATE F1_F
Implementation of the Office
r
SUBJECT: of Auditor General's
� Ordinance
FROM: oe Arriola REFERENCES:
Manager/Chief Administrator ENCLOSURES:
RECOMMENDATION
It is respectfully recommended that the City Commission adopt the attached Ordinance
by amending Chapter 2, Article IV, of the Code of the City of Miami, Florida, as
amended, entitled "Administration, Departments," by repealing, in its entirety, Division
13 entitled "Department of Internal Audits and Reviews," consisting of Sections 2-526
through 2-532, and substituting in lieu thereof a new division 13, entitled "Office of
Independent Auditor General," consisting of new Code Sections 2-526 through 2-531, to
establish the responsibilities and operating procedure of the Independent Auditor
General ("IAG"), granting the City Manager the authorit�o request the IAG to perform
audits, and to provide for appointment and qualifications, duties and powers, staffing, and
special assignment related to the IAG.
BACKGROUND
Pursuant to Resolution 99-608, a charter amendment, which called for the creation of the
position of an IAG and the Office of the IAG, was approved in a referendum, held on
November 2, 1999. The effective date of the charter amendment was January 1, 2000. In
the budget for the current fiscal 2003 -year, $200,000 was appropriated to fund the Office
of the IAG. Prior to this appropriation the Office had not been funded and therefore the
provision of the new Charter had not been implemented. However, on May 23, 2002,
Commissioner Teele directed the administration to instruct the Audit Advisory
Committee (AAC) to provide the Commission with recommendations on how to proceed
with the hiring and budgeting of the IAG's position and further to provide job
qualifications, scope of job credentials, etc. and report back to the Commission.
In its monthly meetings, the AAC discussed the request and the results of the survey of 9
other municipalities in connection with internal audit functions and the appropriate
reporting model. The AAC presented its findings and recommendation to the
Commission in the Commission meeting of February 27, 2003. In its written
recommendation to the Commission, the AAC noted that the funding of two internal
audit offices, the IAG and the Office of Internal Audits (OIA), one reporting to the
Commission and the other reporting to the City Manager, would be duplicative, wasteful
and an inefficient use of scarce City resources. The Committee recommended that the
current appropriation and the existing staff of the OIA be combined into the new Office
of the IAG. The AAC also noted that this administrative change would enhance the
objectivity of the audit process. If the Commission accepts this recommendation, the
OIA would cease and the appropriate changes would be codified. Additionally, the
Committee recommended that the City Code be modified to grant the City Manager the
authority to request the IAG to perform audits of any City department, Office, and/or
program.
It is appropriate to accept the Audit Advisory Committee's recommendation.
FISCAL IMPACT: The annual operating cost for an additional Internal Audit function
would be saved.
JA/VH
12351
CITY OF MIAMI
CITY ATTORNEY'S OFFICE
MEMORANDUM
TO: Mayor and Members of the%City Commission.
FROM: Alejandro Vilarello, City Attorney
DATE: March 14, 2003
RE: Proposed Seconc�Reading Ordinance -March 27, 2003 City Commission Meeting
Amending City Code to establish responsibilities and operating procedure of the
Independent Auditor General ("AIG") (J-03-181)
At the February 27, 2003 meeting, the City Commission passed a first reading ordinance
which provided for the establishment of the responsibilities and operating procedures of the
Internal Auditor General ("IAG") and the abolishment of the Department of Internal Audit and
Reviews and further assigns the duties, functions and responsibilities of the Department of
Internal Audit and Reviews to the Office of the IAG.
The attached ordinance, submitted for second reading, has been further modified to provide
that the Independent Auditor General be empowered to perform all internal audit functions, rather
than limiting the IAG to only certain types of audits.
This ordinance has been submitted for placement on the March 27, 2003 Agenda.
W842:BSS
Attachment
c: Joe Arriola, City Manager
Elvi G. Alonso, Agenda Coordinator
121M