A. Public officials, government managers, and private citizens want and need to know not only whether government funds are handled properly and in compliance with laws and regulations, but also whether public programs are achieving the purposes for which they were authorized and funded, and whether they are doing so efficiently and economically.

B. The activity of government auditing independently reviews, evaluates and reports on the financial condition of the audited entity, the accuracy of financial record keeping, compliance with applicable laws, policies, guidelines and procedures, and the efficiency, effectiveness, and equity of operations.

C. An independent auditing function can provide objective information on the operations of government programs, assist managers in carrying out their responsibilities, and help ensure full accountability to the public.

D. An effective auditing function requires that audit results be accepted and used by public officials. Such acceptance in turn requires that the audit function be understood and recognized as valid, and that it be established on a firm foundation of professional competence.

E. The independence and public accountability of the Auditor can be assured by provision for an elected Auditor as provided for in the City of Berkeley Charter.

F. The effectiveness of the audit function is enhanced when the Auditor is required to adhere to government auditing standards, and that these standards require that the Auditor has an unrestricted right to audit and sufficient resources to audit.

G. Standards for the conduct and practice of governmental auditing have been developed by the Comptroller General of the United States.

H. The audit function in the City of Berkeley is required, based on a Charter amendment approved by the voters in 1998, to adhere to government auditing standards. This helps to ensure that public officials and employees understand the role and function of auditing, to lend consistency and credibility to ongoing audit work, and to provide a basis for monitoring and evaluating the work of audit staff.

I. It was the City’s intent in placing a requirement that resources be provided for performance of audits in the Charter to constrain Councils from limiting the Auditor’s ability to audit.

J. This funding requirement is subject to available resources and recognizes that the substantial elimination of departments, programs, and services in the City could affect the extent of auditable entities for the Auditor’s office.

K. Sufficiency in audit resources is related to the extent of auditable entities and audit opportunities, the degree of risk, the complexity of operations, and the opportunities for identifying control weaknesses, areas for improvement, or areas for revenue enhancements.

L. Audit services are especially needed in difficult economic times, in order to ensure that the City Council and the public are provided independent and objective information.

M. It is vital to the independence of the Auditor that decisions made about audit resources are made after public discussion, to avoid any appearance that resource decisions may be made so as to influence the Auditor’s choice of audit subjects or findings and recommendations.

N. It is vital to the effectiveness of audit work that it be performed by staff who collectively possess sufficient professional proficiency, qualifications and skills, which may be demonstrated by obtaining relevant certifications such as a CIA (Certified Internal Auditor), CPA (Certified Public Accountant) or degrees in relevant fields such as public policy, public administration, accounting, business administration, political science or related fields, and the City Council may wish to consider taking such competencies and certifications into account in setting the salary for the Auditor and other audit staff.

O. Charter requirements to follow government auditing standards should be codified as to the structuring and expectations of the Auditor’ s office.

P. The government auditing standards in use in 2006 are Government Auditing Standards (also known as "yellow book" standards) issued by the Comptroller General of the United States in 2003, published by the General Accountability Office (GAO) and available in 2006 at: http://www.gao.gov. (Ord. 6910-NS § 2 (part), 2006)