By Johnny Freeman,2014-05-15 16:36
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The Audit and Finance Committee shall assist the Governing Board in fulfilling

    its oversight responsibility with respect to the financial reporting process and

    integrity of the Peralta Colleges’financial statements; the development of the

    annual budgets that are realistic in scope and content and understandable to all

    interested parties; the systems of internal control; the performance of the

    independent auditors and the internal audit function; the independent auditors’

    qualifications and independence; and the Peralta Colleges’ compliance with legal

    and regulatory requirements. The Committee shall take all appropriate actions to

    set the overall tone for quality financial reporting, sound business risk practices,

    and ethical behavior. The Committee will pursue a goal to achieve the best

    financial operations when compared to other Community Colleges.


The Committee shall report to the Governing Board on matters requiring its

    attention and recommend action based on the Committee’s review and evaluation

    of budgeting, accounting, audit and financial reporting issues, on the basis of

    oversight of the systems of internal controls and preparation of financial

    statements. It is not the responsibility or duty of the Committee to plan or conduct

    audits or to determine that financial statements are complete, accurate, and in

    accordance with generally accepted accounting principles. Management is

    responsible for the preparation, presentation, and integrity of financial statements

    and for the appropriateness of the accounting principles and reporting policies

    that are used. The independent auditors are responsible for auditing financial


The Committee shall:

A. Review and evaluate the budget development process for content and

    presentation methodology prior to submittal to the Governing Board for


B. Review and evaluate all interim reports on budget execution and status.

    C. Recommend the appointment of the external auditors, considering the

    recommendation of the Vice Chancellor for Financial Affairs/Chief

    Financial Officer, for approval by the Governing Board.

    a. Review and evaluate the annual audit scope and fees of the external


    b. Evaluate the independence of the external auditors.

    c. Evaluate the report of the external auditors regarding the results of the

    annual audit, including but not limited to:

    i. The audited financial statements and management letter of


    ii. The adequacy of system internal controls.

    iii. Management cooperation with the external auditors.

    iv. The adequacy of accounting policies and practices, including

    the level of compliance with governmental regulations, recent

    professional pronouncements and their impact on the financial


    D. Confirm with management and the independent auditor that the annual

    financial statements disclose all material off-balance sheet transactions,

    arrangements, obligations, and other relationships with unconsolidated

    entities or other persons that may have a material current or future effect

    on the financial condition, changes in financial condition, results of

    operations, liquidity, capital expenditures, capital resources, or significant

    components of revenues or expenses.

    E. An Inspector General, who reports directly to the Governing Board,

    assumes responsibility for internal audit of both financial and operational

    functions, with the Audit and Finance Committee as the initial point of

    contact. The Committee will:

    a. Review and evaluate the performance of the Inspector General on a

    periodic and scheduled basis.

    b. Review and evaluate the results of major operational or compliance

    audits and make appropriate recommendations to the Governing Board

    with respect to the findings involved.

    c. Review the scope of audit coverage and the applicable schedules.

    F. Establish procedures for the receipt, retention and treatment of complaints

    or concerns received by the Peralta Colleges regarding accounting,

    internal accounting controls or auditing matters, including confidential,

    anonymous submissions from employees.

    G. Regularly meet for approximately two hours at 5 PM on the Thursday

    following the second Tuesday of each month from September though July.

    a. The Vice Chancellor for Financial Affairs/Chief Financial Officer will

    provide staff support for the Committee.

    b. All meetings will be posted and conducted in accordance with the

    Sunshine laws of the State of California and will be open to the public. c. Additional meetings may be called, including closed sessions, when

    circumstances so dictate.

    d. Minutes of each session shall be prepared, approved at the following

    meeting, and retained in accordance with established retention policy. e. A majority of the Committee of three Trustees shall constitute a

    quorum for the transaction of business at any meeting thereof, and the

    act of a majority of the members of the Committee present at any

    meeting at which a quorum is present shall be the act of the Committee.

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