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TC Res. No. 1996-45RESOLUTION NO. 96-45 SERIES OF 1996 A RESOLUTION ADOPTING A POLICY REGARDING THE ROLES AND RESPONSIBILITIES OF THE FINANCE COMMITTEE WHEREAS, The 'town of Avon has established a Finance Committee; and WHEREAS, The Finance Committee has certain oversight responsibilities; and WHEREAS, The Town desires to establish the roles and responsibilities of the Finance Committee. NOW, THEREFORE, BE IT HEREBY RESOLVED, that the Town Council of the Town of Avon, Colorado, adopts the attached Policy Regarding the Roles and Responsibilities of the Finance Committee. ADOPTED AND PASSED, this 22"d day of October, 1996 TOWBy: Mayor F TTEST: Patty Lambert, Town Clerk TOWN OF AVON, COLORADO Policy Regarding the Roles and Responsibilities of the Town of Avon Finance Committee The Finance Committee shall consist of the Finance Director, Finance Officer, and 3 representatives appointed from the Town Council (2 regular members and 1 alternate). The individual Council representatives appointed by the Town Council shall serve at the Council's discretion and may be removed by a majority vote of the Council at any time. The Finance Committee shall meet as needed but no less than quarterly. Written minutes of the Finance Committee's meetings shall be recorded and distributed to the Council within one week after each: meeting. FUNCTION The Finance Committee's single most important role will be that of a communications link between Council and management involved in the financial operations and financial management of the Town. The Finance Committee will help provide direction and guidance to management on issues involving all aspects of the Town's financial structure and operation. . The Committee's initial responsibilities shall include acting as the oversight body for the Town's external audit and acting as the oversight body for the Town's investment program. These specific oversight responsibilities are included as attachments to this report. Additional oversight responsibilities may be added to the Finance Committee by resolution at any time. Financial issues can become complex and may involve technical concepts that require lengthy explanation. Accordingly, the Finance Committee shall focus its attention on and shall meet periodically to discuss and deliberate various financial related issues. The Finance Committee may also be directed by Town Council to prepare background information and to make various presentations on a variety of financial related issues. Topics may include financial policy development, capital financing needs and plans, long-term economic and fiscal trends, and ways to improve public accountability. Other topics might include telecommunications and office automation, insurance and risk management, and any of the other key responsibility areas of the Finance Department. External Audit Oversight 1. hiring of the independent external auditor (including preparing the RFP and analyzing the responses); 2. monitoring of the audit's progress; 3. meeting with the Town's external auditors, as necessary, to discuss issues related to the audit, including adjustments or other items that have come to the attention of the external auditor during the engagement; 4. receiving a detailed report from the external auditors at the conclusion of the audit on any findings identified that require corrective action or recommendations for improvements in internal controls or accounting procedures; 5. ensuring appropriate action is taken related to any audit findings or recommendations made by the auditor that the committee deems appropriate to implement; and b. reporting the results of the audit process to the full Town Council Investment Prdgram.©versight 1. The Finance Committee shall provide oversight responsibility for the Town's investment program; 2. meet as necessary to determine general strategies, review portfolio performance and to monitor compliance with the Town's investment policies; 3. deliberate on such topics as economic outlook, portfolio diversification and maturity structure, potential risks to the Town's funds, brokers and dealers, and target rates of return on the investment portfolio; 4. review the Town's investment policy at least annually; 2