The City of Hartford Municipal code, Section 2-41 establishes the Internal Audit Commission and grants authority to the Internal Audit Department as follows:
Sec. 2-41. - Internal audit commission.
(a) Established. There shall be an internal audit commission.
(b) Purpose, responsibility, and authority. The commission shall conduct independent examinations and evaluations of city financial activities to assure the integrity, efficiency, and efficacy of the government of the city, including the board of education. Such examinations and evaluations may involve investigations of accounting irregularities, mismanagement or fraud and such independent staff, consultants and counsel necessary to achieve the purposes of the Charter. The commission shall direct staff and consultants of the internal audit unit established pursuant to section 2-41.1 of this Code. The commission shall give due consideration to requests from the council or any member thereof and from the mayor, in establishing and modifying the audit plan of the commission or the work plan of the staff of the internal audit unit. This shall not prevent the commission from giving due consideration to any complaint by any employee or citizen of the city with regard to use or misuse of city funds. In carrying out its duties, the commission, and the internal audit unit, acting pursuant to direction of the commission, shall perform activities such as, but not limited to, the following:
(1) Ascertaining the extent of compliance with established policies, plans, procedures and legal requirements;
(2) Reviewing and appraising the soundness, adequacy and application of accounting, financial, operating and systems controls;
(3) Ascertaining the extent to which city assets are accounted for and safeguarded from losses of all kinds; and
(4) Ascertaining the reliability of management data developed within the city departments and offices and the board of education.
(1) The commission shall consist of three (3) members, no more than two (2) of whom are members of the same political party. Each member of the commission shall have professional or equivalent experience in at least one (1) of the following fields; accounting, management, or financial analysis. As to issue of politically partisan activities or financial matters, members of the commission will be subject to the same requirements as members of the ethics commission of the city.
(2) No member shall:
a. Hold or campaign for public office;
b. Have held or been a candidate for public office during the three-year period prior to appointment;
c. Hold office in any political party or political committee;
d. Be a city employee;
e. Employ or be employed as a person required to register as a lobbyist.
(3) The membership of the commission shall be as follows:
a. One (1) member of the commission shall be appointed by majority vote of the council;
b. One (1) member of the commission shall be appointed by the city treasurer; and
c. One (1) member of the commission shall be appointed by majority vote of the council from the two (2) individuals nominated by the owners of taxable property who are the ten (10) highest-paying taxpayers (hereinafter referred to as "certified tax payers") in the city as determined by the most recent grand list, as certified by the city assessor.
(4) Each member shall comply with the Code of Ethics as set forth in Chapter 2, Article XIX of the Municipal Code.
(d) Nomination of taxpayer member. The city assessor shall ask the certified tax payers to convene for the purpose of nominating the two (2) individuals to be presented to the council, one (1) of whom shall be appointed by the council to the internal audit commission, as described in subsection (c)(3)c. of this section. The certified taxpayers shall forthwith nominate the two (2) individuals and forward the nominations to the council.
(e) Term of office.
(1) a. The member first appointed by a majority vote of the council, as specified in subsection (c)(3)a. shall serve a four-year term.
b. The member first appointed by the city treasurer, as specified in section (c)(3)b. of this section, shall serve a three-year term.
c. The member first appointed by the council, in accordance with subsection (c)(3)c. of this section shall serve a two-year term.
(2) On and after January 1, 2006, members appointed to the commission shall serve a term of four (4) years beginning January 1 and expiring after December 31 of each fourth year after January 1, 2006. A member of the commission whose term has expired shall serve on the commission until the successor of the member has been appointed. Commissioners may serve multiple terms.
(f) Chair. The members of the commission shall elect one (1) of its members to serve as chair.
(g) Residency requirement. The residency requirements of Chapter VII, section 1(e) of the Charter do not apply to members of the commission.
(h) Vacancy. In the event of a vacancy on the commission a successor may be appointed for the unexpired term of office by the appointing authority of the member whose position is vacant. If the vacancy is in the position of taxpayer member appointed pursuant to the provisions of subsection (c)(3)c. of this section, the council shall appoint the member from a new list of two (2) nominees created pursuant to the provisions of subsection (d) of this section.
(i) Removal. The appointing authority of commission members may initiate proceedings to remove a member of the commission for any of the following reasons:
(1) Misconduct in the performance of duties;
(2) Persistent absence;
(3) Conviction of a felony;
(4) Conviction of a misdemeanor that would undermine the public confidence in the member's ability to perform the duties of office;
(5) Appointment or election as an officer or employee of the city.
Seven votes of the council shall be required to remove a member of the commission. The procedure for such removal will be in accordance with the relevant language of Chapter IV, Section III, paragraph "a" of the Hartford City Charter.
(j) Meetings. The internal audit commission shall meet as often as it deems necessary, but at least once each quarter. The business of the internal audit commission shall be recorded in official minutes, which shall be "public documents" within the meaning of the Freedom of Information Act of the State of Connecticut. The said meeting minutes shall be filed with the town and city clerk within two (2) weeks following each meeting. Staff of the internal audit unit, established pursuant to the provisions of section 2-41.1 of the Code, shall serve as staff to the commission and shall record the minutes of the internal audit commission at each meeting.
(k) Annual internal audit budget. The internal audit commission shall adopt and forward to the mayor, in accordance with the procedures and timetable established for other city departments, a proposed annual budget. Unless the commission requests a smaller amount, the mayor's budget shall include, and the council shall appropriate, for support of the internal audit commission and internal audit unit at least the amount necessary to maintain the staffing and the operating expenses of the unit as approved in the previous annual budget.
(l) Audit plan, procedures, and reports. The commission shall prepare an annual audit plan; prepare and submit to council a quarterly activities report each July first, October first, January first, and April first; and establish standard operating procedures for the commission and the internal audit unit. Any employee of the city, the head of a department, agency, or office, and any city officer cited in an internal audit report shall provide a written response to any inquiry from the internal audit unit made on behalf of the internal audit commission. All reports of the commission and unit, including responses thereto, shall be public and shall be submitted to the appointing authorities and to the mayor.
(m) Compensation. No member of the commission shall receive compensation for services as a member of the commission, nor shall any member of the commission be deemed to be either an employee of the city for purposes of pension credit, or a member of the city municipal employees' retirement fund.
(Ord. No. 11-04, 7-6-04; Ord. No. 11-13, 11-25-13)
Editor's note— Ord. No. 11-04, adopted July 6, 2004, repealed former § 2-41 of the Code, which pertained to the internal audit unit and derived from the 1977 Code, § 2-39, and Ord. No. 9-83, §§ 1—4, adopted Feb. 28, 1983. In addition, Ord. No. 11-04 added new provisions to the Code as §§ 2-42, 2-43; as other provisions already existed within the Code as § 2-43, said provisions of Ord. No. 11-04 have been redesignated as §§ 2-41, 2-41.1 at the editor's discretion.
Charter reference— Internal audit commission, Ch. VII, § 2(a).
Cross reference— City finances, § 2-481 et seq.
Sec. 2-41.1. - Internal audit unit.
(a) Established. There shall be an internal audit unit which shall be a department of the City of Hartford. The unit shall provide staff to, and shall report to and be under the direction of, the internal audit commission. The unit shall discharge the responsibilities of the internal audit commission as directed by the commission. The unit shall have full access to all records, property and personnel of all city departments and offices and those of the board of education in the performance of its duties. The unit shall discharge its responsibilities in a manner consistent with the code of ethics of the institute of internal auditors.
(b) Head of unit. The head of the internal audit unit shall be the chief auditor, who shall be appointed by the commission. The chief auditor shall be a member of the classified service, shall be certified as an internal auditor or fraud examiner, and shall have an advanced degree in accounting, business administration, public administration, or law. The chief auditor shall be administratively responsible for the operation of the internal audit unit and shall make recommendations to the commission concerning appointments to the unit, promotions within the unit, and the salary, within adopted salary schedules, for each employee of the unit. Additionally, the head of the internal audit unit shall be responsible for the timely filing of internal audit commission minutes with the town and city clerk, in accordance with subsection 2-41(j).
(c) Staff. The internal audit unit shall have such staff as shall be approved by the council in adoption of the annual budget, as recommended by the commission, subject to the provision of subsection 2-41(k). Staff of the internal audit unit shall be members of the classified service and, subject to the rules of the classified service, shall be appointed and may be removed by the chief auditor.
(d) Consultants. In accordance with Chapter VII, Section 2(a)(3) of the Charter, the commission and the internal audit unit may retain such consultants for the purpose of conducting the examinations and evaluations required by the Charter and this Code. Such consultants may include, but not be limited to, accounting professionals, legal counsel, financial advisors, information technology consultants or criminal investigators as deemed necessary and appropriate.
(e) Counsel to the internal audit commission and internal audit unit. In accordance with Chapter VII, Section 2(a) and (b) and Chapter VIII, Section 3(b)(1)(i) of the Charter, the commission and the internal audit unit may retain counsel for the purpose of providing legal advice necessary to conduct the independent examinations into all matters relating to the integrity, efficiency and efficacy of the government of the city, including the board of education. Notwithstanding any provisions otherwise set forth in this Code or by resolution regarding the role of the Corporation Counsel with regard to the (1) representation of the commission and the internal audit unit and (2) selection and retention of counsel, the commission is hereby authorized to retain counsel in accordance with Chapter VIII, Section 3(b)(1)(i) of the Charter. Said Counsel shall be an attorney of good standing in the State of Connecticut for a period of not less than ten (10) years or a reputable firm.
(Ord. No. 11-04, 7-6-04; Ord. No. 11-13, 11-25-13)
Charter reference— Internal audit unit, Ch. VII, § 2(a)(3).
Note— See the editor's note following § 2-41.