(a) To ensure independence of the audit function, an audit committee is hereby established.  The audit committee shall consist of five (5) members:  two (2) non-voting council members and three (3) voting citizen members, who shall be appointed by the council.  At least one (1) of the citizen members shall be a licensed certified public accountant, and the other two (2) citizen members shall have a background in finance, accounting, and/or auditing.  Of those first appointed, one (1) member shall be appointed for a term of one (1) year, one (1) for a term of two (2) years; one (1) for a term of three (3) years; and thereafter all appointments shall be for a term of three (3) years.

(b) The audit committee shall consult with the city auditor regarding technical issues and work to assure maximum coordination between work of the office of the city auditor and external audit efforts.

(c) The audit committee shall meet as needed to perform its duties but shall not meet less than three (3) times annually and shall be responsible for:

1. Reviewing the city auditor's annual plan and budget before submission to council.
2. Reviewing final audit reports before issuance;
3. Transmitting audit reports to council;
4. Monitoring follow-up on reported findings to assure corrective action is taken;
5. Reporting to council on problems or problem areas at such times as deemed appropriate;
6. Performing an evaluation of the city auditor annually and reporting the results of the evaluation and effectiveness of the audit function to council;
7. Reviewing reports of the external auditors; and,
8. Evaluating the findings and recommendations of the peer review of the audit function as required by Government Auditing Standards.