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Ordinance No. 14-29 modifying Section 502 (Claims Reserve Fund) and 503 (Compromise or Settlement of Claims) of Part 5 (Claims Management) and Section 602 (Worker's Compensation Claim Reserve Fund) of Part 6 (Workers' Compensation) of Chapter 1 (Finance Management Procedures) of Chapter 1 (Administration, Personnel and Finance) of the Code of the City of Colorado Springs 2001, as amended, pertaining to the requirements for the frequency of certain audits.
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Summary: The Audit Committee, City Auditor, and City Administration are requesting a change to City Code to allow scheduling flexibility for audits of the Liability Claims Reserve Fund and Workers' Compensation Fund. This proposed change will allow the Audit Committee and the City Auditor more flexibility in the prudent use of audit resources.
Previous Council Action: City Council established the Liability Claim Reserve Fund in 1986 and the Workers' Compensation Fund in 1989. Council initially required annual audits of these funds. In 1994, City Council changed the frequency of these audits to every two years.
Background: City Code only specifies the frequency of audits in a few areas. Currently, City Code 1.5.502: Claims Reserve Fund requires the City Auditor to review this area every two (2) years. City Code 1.5.503: Compromise or Settlement of Claims also requires an audit of specific aspects of this fund. Section 1.5.602: Workers' Compensation Claim Reserve Fund calls for the audit of the Workers' Compensation area every two (2) years. The only other area of City Code to specify the frequency of audits is related to the Trails, Open Space & Parks Program, which requires audits as specified in the ballot language approving this tax and program.
Financial Implications: Approving the proposed change would allow audit resources to be utilized more efficiently under the direction of the City Auditor and the Audit Committee. The amount appropriated to the Office of the City Auditor w...
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