Audit Committee
Charter Review
Tom Barnard
Research and Policy Analyst
March 31, 2009
Item No. __6d_Supp___
Date of
Meeting: _March 31 2009
Background
• The Audit Committee was created to “represent the
Commission and have review and oversight
authority on matters relating to the Port's auditing
process and procedures”
• In the past year the Audit Committee strengthened
its oversight role and organizational capacity
• The Committee decided at January 2009 meeting to
review and amend its internal charter, to bring the
Charter up to date with the Committee’s current work
Review of Major Changes
Overall re-organization of the Charter, to separate
out authority, duties, internal responsibilities,
composition, and meeting structure
A more detailed spelling out of the authority of the
Audit Committee and its relationship to the
Commission
A re-working of language concerning the Internal
Audit Manager that reflects her work with the Audit
Committee, and her responsibilities to it
Review of Major Changes
A section requiring Port departments to report on
their progress in correcting deficiencies previously
pointed out by the Internal Audit Manager
Clarification of the relationship between the Audit
Committee and outside external auditors, as well as
a fuller explanation of what audits they provide
A description of the Audit Committee’s review of
performance audits
A description of the reporting relationship between
the Audit Committee and the State Auditor’s Office
Review of Major Changes
A corrected description of the Audit Committee
membership
A more detailed description of the skills and
authority of the public member of the Audit
Committee
A slightly revamped description of meetings
Review of Changes for 2
nd
Reading
• Authorizes the Audit Committee to review and recommend
to the Commission the independent auditors used for the
Port’s financial statements, Passenger Facilities Charge
Audits, and other audits.
• Requires quarterly reports from the Audit Committee to the
Commission instead of annual reports.
• Amends the voting section so that in case of a tie vote, the
matter is automatically referred to the Commission for
review and vote.
• Calls for Audit Committee agendas and minutes to be
circulated to all Commission members.
