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PROPOSED ORDINANCE AMENDMENT
AUDITOR
BE IT ORDAINED, by the Cook County Board of Commissioners, that Chapter 2., Administration, Article IV. Officers and Employees, Division 6. Auditor, Section 2-311 through 2-311.13 of the Cook County Code is hereby amended as Follows
Sec. 2-311. Office created.
There is hereby created the office of County Auditor who shall be appointed by the President of the County Board and ratified by a majority of the members of the County Board.
Sec. 2-311.1. Term of office.
The Auditor shall serve for a term of five years, and removal from office must be for cause and by a vote of a majority of the members of the County Board. In case of a vacancy in the office of Auditor caused by death, resignation, term expiration, or removal from office, the vacancy shall be filled in the manner aforesaid and to the extent possible, the candidate recommended for Auditor shall be made within six months of the vacancy.
Sec. 2-311.2. Qualifications.
The County Auditor must hold at least one of the following credentials:
(a) Certified Public Accountant, licensed by the State of Illinois;
(b) Certified Internal Auditor;
(c) Certified Information System Audit Professional; or
(d) Certified Government Finance Manager.
Sec. 2-311.3. Compensation.
The County Auditor's compensation shall be fixed by the County Board.
Sec. 2-311.4. Funding.
Sufficient funds shall be proposed and approved to carry out the responsibilities specified herein.
Sec. 2-311.5. Appointment of employees.
The Auditor may with the authority of the President of the County Board and in accordance with the Human Resource Rules and Procedures, employ assistants and employees the number and compensation of whom shall be fixed by the County Board.
Sec. 2-311.6. Professional development.
Sufficient resources shall be made available to the Auditor and staff to ensure appropriate professional development, continuing professional education and compliance with applicable certification and professional requirements.
Sec. 2-311.7. Powers and duties; charter; scope of audits.
Internal Auditing is an independent and objective activity that is guided by a philosophy of adding value to improve the operations of Cook County government. It assists Cook County in accomplishing its objectives by bringing a systematic and disciplined approach to evaluate and improve the effectiveness of the countywide risk management, control, and governance processes.
The Cook County Auditor's authority and responsibilities are established by this Section. The Office of the President will have direct supervision and management oversight of the Auditor. The Auditor will report functionally and administratively to the President and the County Board. Administrative reporting shall not interfere with the Auditor’s objective and impartial judgment on all issues associated with conducting the engagement and reporting on the work. Administrative reporting includes but is not limited to the following: status of audit schedule; department operations; status of corrective action. The County Auditor shall have unrestricted access to communicate and interact directly with the Audit Committee Chair without management present. The County Auditor is given authority to implement, and document safeguards the County Auditor deems necessary to identify and reduce threats to independence. The County Auditor shall report to the County Board at the end of each fiscal year, regarding the independence and effectiveness of the Office of the County Auditor.
The Auditor shall have authority to conduct financial, management and performance audits of all Cook County departments, offices, boards, activities, agencies and programs and in any government entity that is funded in whole or in part by the County pursuant to the County's annual appropriation bill in order to independently and objectively determine whether:
(a) Activities and programs being implemented have been authorized by government Charter or Code, state or provincial law or applicable federal law or regulations and are being conducted and funds expended in compliance with applicable laws;
(b) The department, office, or agency is acquiring, managing, protecting, and using its resources, including public funds, personnel, property, equipment, and space, economically, efficiently, and effectively and in a manner consistent with the objectives intended by the authorizing entity or enabling legislation;
(c) The entity, programs, activities, functions, contracts, grants management, or policies are effective, including the identification of any causes of inefficiencies or uneconomical practices;
(d) The desired result or benefits are being achieved;
(e) Financial and other reports are being provided that disclose fairly, accurately, and fully all information required by law, to ascertain the nature and scope of programs and activities, and to establish a proper basis for evaluating the programs and activities including the collection of, accounting for, and depositing of, revenues and other resources;
(f) Management has established adequate operating and administrative procedures and practices, systems or accounting internal control systems and internal management controls; and
(g) Indications of fraud, abuse or illegal acts are valid and need further investigation. Any evidence to indicate the occurrence of fraud or illegal acts discovered by the Auditor must be reported to the Independent Inspector General and State's Attorney immediately.
In addition to the foregoing, the Auditor may also perform audits, reviews and special projects as directed by the President or the County Board, including, but not limited to, the auditing of grants, management initiatives, contracts or financial statements.
Sec. 2-311.8. Standards.
Audits shall be conducted in accordance with generally accepted government auditing standards and the Institute of Internal Audit’s Global Internal Audit Standards.
Sec. 2-311.9. Audit schedule.
At the beginning of each fiscal year, the Auditor shall submit an audit schedule to the President, Audit Chair and County Board for referral to the audit committee for review and comment. The schedule shall include the proposed plan, and the rationale for the selections, for auditing departments, offices, boards, activities, subcontractors and agencies for the period. This schedule may be amended after review with the audit committee, but the Auditor shall have final authority to select the audits planned.
Sec. 2-311.10. Access to employees, records and property.
All elected officials, officers and employees of the County and in any government entity that is funded in whole or in part by the County pursuant to the County's annual appropriation bill shall furnish the Auditor unrestricted access to employees, information and records (including electronic data) within their custody regarding powers, duties, activities, organization, property, financial transactions, contracts and methods of business required to conduct an audit or otherwise perform audit duties. In addition, they shall provide access for the Auditor to inspect all property, equipment and facilities within their custody. Further, all contracts with outside contractors and subcontractors shall contain a "right-to-audit" clause and provide for Auditor access to the contractor's employees and to all financial and performance related records, property, and equipment purchased in whole or in part with governmental funds.
The Auditor shall report to the County Board any matters which impede the discharge of these duties. In the event that any elected official, officer or employee of the County or in any government entity that is funded in whole or in part by the County pursuant to the County's annual appropriation bill does not provide the requested records, documents, reports and property without good cause, the County Board shall seek whatever legal remedies are available.
Sec. 2-311.11. Agency response.
A final draft of the audit report will be forwarded to the audited agency for review and comment regarding factual content prior to its release. The agency must respond in writing, specifying (i) agreement with audit findings and recommendations or reasons for disagreement with findings and/or recommendations; (ii) plans for implementing solutions to issues identified; (iii) a timetable to complete such activities. The response must be forwarded to the Auditor within 15 working days. The Auditor will include the agency's response in the report. If no response is received, the Auditor will note that fact in the transmittal letter and will release the audit report.
Sec. 2-311.12. Audit reports.
The Auditor shall submit all audit reports prepared pursuant to this Section simultaneously to the President, Audit Chair and the County Board. Audit reports shall be submitted within 45 days of completion.
All audit reports, written audit comments, recommendations, and responses resulting from the duties under this Section are public documents and will be made available for public inspection subject to any legally required redactions.
Sec. 2-311.13. Report of irregularities.
If, during an audit, the Auditor becomes aware of abuse or illegal acts or indications of such acts that could affect the government entity, the Auditor shall report the irregularities to Independent Inspector General and/or the audit committee, the President and the County Board.
Sec. 2-311.14. Audit follow-up.
The Auditor shall follow up on audit recommendations as practical to determine if corrective action has been taken. The Auditor may shall request periodic status reports from audited agencies regarding actions taken to address reported deficiencies and audit recommendations. Failure to implement corrective actions for reported deficiencies within the agreed upon timetable shall be reported to the County Board in the Auditor’s annual report.
Sec. 2-311.15. Annual Review.
The Auditor Ordinance will be reviewed annually by the County Auditor to determine compliance with audit standards. The County Auditor’s findings and recommendations, if any, shall be presented to the President and to the County Board within 60 days following the end of each fiscal year.
Effective date: This ordinance shall be in effect immediately upon adoption.
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