The Citizens' Audit Review and Financial Advisory Committee consists of 9 volunteer members (serving without compensation) as appointed by the Board of Commissioners, subject to all local laws. It is the Board's goal, when filling appointments to the committee, to include such members as described below. Please note that this goal is not mandatory and is for informational purposes only. In addition to the volunteer members, the Township Finance Director shall serve as a nonvoting, standing member to the Committee and shall serve as the liaison between the Committee, the Board and the Administration.
Each volunteer member will serve a term of 4 years as appointed by the Board of Commissioners. Initially, in order to stagger the terms of appointed members, 2 of the residential appointments will serve a 2-year term while the other 3 members will serve the regular 4-year term. Further, one of the initial business owner appointments will serve a 2-year term and the other 2 will serve regular 4-year terms.
Committee Requirements & Responsibilities
Meetings of the CARFAC will be open to the public, held at least quarterly, and will be advertised in the same manner as other Township Boards and Committees. Committee Responsibilities:
Meet with the Township Auditors annually before and at the conclusion of each audit.
Review quarterly financial statements (including updated budget versus actual statements, statements of fund cash position, debt position, long-term financial forecast position or change in assumptions, pension funding status, OPEB Funding status, or other reports as discussed by the Commissioners or Committee)
Review the progress of Board approved strategies as recommended by the Citizens Budget and Finance Advisory Committee (CBFAC) of 2010
Review the progress of audit recommendations to the Township
Any other projects or tasks as assigned to it by the Township Board of Commissioners
The Committee shall report to the Board of Commissioners as deemed necessary by the Board or by the CARFAC.
Who is CARFAC?
In the Township's efforts to continue to bring citizen participation in developing methods and techniques for success, the Board of Commissioners created the Citizens' Audit Review & Financial Advisory Committee (CARFAC) on February 14, 2011 (Resolution 2011-01). It is the expectation of the Board that members of the CARFAC share their expertise and serve as a network for educating the public on the Township's financial practices and objectives, while continuing to foster the trust and stable accountability between the Township and its stakeholders.
Foundation & Purpose
The National Commission on Fraudulent Financial Reporting (known as the Treadway Commission), has stated that an audit committee can serve as "informed, vigilant, and effective overseers of the financial reporting process and internal controls." An audit committee should perform the following functions:
Review the annual unaudited financial report submitted by the Administration
Periodically review the process used to prepare interim financial information submitted to the Board of Commissioners
Publicly review audit results (to include annual financial audits, pension audits, and any other mandated audit performed on the Township's finances)
Assure that audit recommendations are appropriately addressed
Report at least once annually to the Board of Commissioners in accordance with their responsibilities
Generally Accepted Auditing Standards require that auditors communicate the following information to an audit committee:
The auditor's professional responsibility under generally accepted auditing standards
Selections of accounting policies
Sensitive accounting estimates
Significant or material audit adjustments
Unresolved disagreements with management
Difficulties encountered in performing the audit
The Citizens' Audit Review and Financial Advisory Committee is an additional layer to enhance the Township's effort to promote transparency in financial accountability and to ensure the appropriate and proper expenditure of taxpayer dollars.