General

​AUDIT COMMITTEE​ ​AGENDA​ ​DATE: July 29, 2026​ ​LOCATION: City Hall 4th Floor Conference Room​ ​TIME: 3:00 PM​ ​I.​ ​CALL TO ORDER – Chairman​ ​II.​ ​ANNOUNCE MEMBERS IN ATTENDANCE (VERIFY QUORUM)​ ​III.​ ​ADOPTION OF MINUTES​ ​A.​ ​April 29, 2026 Audit Committee Meeting​ ​IV.​ ​DEPARTMENT REPORT​ ​A.​ ​Department Update​ ​B.​ ​Quality Assurance and Improvement Program - Annual Review Results​ ​C.​ ​Annual Report​ ​D.​ ​Other Required Communications from Auditing Standards​ ​V.​ ​NEW BUSINESS​ ​A.​ ​Committee Member Vacancy for CY 2027-2028​ ​B.​ ​Discussion Item - Parking Commission​ ​VI.​ ​COMMITTEE ACTION REQUIRED​ ​A.​ ​FY 2027 Audit Plan Approval​ ​B.​ ​Internal Audit Charter Approval​ ​VII.​ ​CITY COUNCIL ACTION REQUIRED​ ​A.​ ​None​ ​VIII.​ ​ADJOURNMENT OF PUBLIC MEETING​ ​IX.​ ​PUBLIC COMMENTS (5 minutes each)​ ​X.​ ​NEXT MEETING -​ ​October 28, 2026 3:00 PM​ ​XI.​ ​EXECUTIVE SESSION – Vote by the Committee to go into executive session.​  ​During executive session and for the remainder of the meeting, the Audit Committee will be​ ​discussing only matters that are considered confidential under TCA Section 9-3-405 (d). These​ ​items may include:​ ​A.​ ​Items deemed not subject to inspection under TCA Section 10-7-503 and 10-7-504​ ​B.​ ​Current or pending litigation and pending legal controversies​ ​C.​ ​Pending or ongoing audits or audit related investigations​ ​D.​ ​Information protected by federal law​ ​E.​ ​Matters involving information under TCA Section 9-3-406 where the informant has​ ​requested anonymity.​ ​At this point in the meeting everyone other than Audit Committee members and those asked​ ​to attend by the Audit Committee to address an item related to the categories above will be​ ​asked to leave.​ ​XII.​ ​ADJOURNMENT OF EXECUTIVE SESSION​  UNAPPROVED AUDIT COMMITTEE MINUTES DATE: April 29, 2026 LOCATION: City Hall 4th Floor Staff Conference TIME: 3:00 PM I. CALL TO ORDER – Chairman The meeting was called to order by Elizabeth Rankin at 3:06 pm. II. ANNOUNCE MEMBERS IN ATTENDANCE (VERIFY QUORUM) Audit Committee members present: Rodney Wright, Lynn Stokes, Keri Lovato, Elizabeth Rankin, Chris Reneau (joined at 3:08 pm) Audit Committee members absent: None Quorum verified? Yes Internal Audit attendees: Stephanie Fox, Emily Hammer Other Attendees: None III. ADOPTION OF MINUTES A. October 29, 2025 Audit Committee Meeting Keri Lovato made a motion to adopt the minutes. Lynn Stokes seconded. The motion was approved unanimously. B. February 4, 2026 Audit Committee Meeting Keri Lovato made a motion to adopt the minutes. Lynn Stokes seconded. The motion was approved unanimously. C. February 23, 2026 Audit Committee Meeting Rodney Wright made a motion to adopt the minutes. Keri Lovato seconded. The motion was approved unanimously. D. March 25, 2026 Audit Committee Meeting Lynn Stokes made a motion to adopt the minutes. Keri Lovato seconded. The motion was approved unanimously. IV. DEPARTMENT REPORT Stephanie presented the budget report and an update on department activity.  UNAPPROVED V. NEW BUSINESS A. None VI. COMMITTEE ACTION REQUIRED A. FY 2027 Proposed Budget Stephanie presented the proposed budget for FY 2027. Chris Reneau made a motion to approve the FY 2027 Proposed Budget. Rodney Wright seconded. The motion was approved unanimously. B. Audit Plan Revision Stephanie presented the proposed revision to the audit plan for FY 2026. Chris Reneau made a motion to approve the Audit Plan Revision. Lynn Stokes seconded. The motion was approved unanimously. C. Policy Revisions - Quality Assurance and Improvement Program, Annual Risk Assessment and Audit Plan, Performing Audit Services, Performing Advisory Services Stephanie presented the proposed updates to departmental policies. Lynn Stokes made a motion to approve the Policy Revisions. Chris Reneau seconded. The motion was approved unanimously. VII. CITY COUNCIL ACTION REQUIRED A. None VIII. ADJOURNMENT OF PUBLIC MEETING Keri Lovato made a motion to adjourn the public meeting and move into executive session. Chris Reneau seconded. The public meeting was adjourned at 3:30 pm. IX. PUBLIC COMMENTS (5 minutes each) X. NEXT MEETING - July 29, 2026 3:00 PM XI. EXECUTIVE SESSION – Vote by the Committee to go into executive session. During executive session and for the remainder of the meeting, the Audit Committee will be discussing only matters that are considered confidential under TCA Section 9-3-405 (d). These items may include: A. Items deemed not subject to inspection under TCA Section 10-7-503 and 10-7-504 B. Current or pending litigation and pending legal controversies C. Pending or ongoing audits or audit related investigations D. Information protected by federal law E. Matters involving information under TCA Section 9-3-406 where the informant has requested anonymity. At this point in the meeting everyone other than Audit Committee members and those asked to attend by the Audit Committee to address an item related to the categories above will be asked to leave.  UNAPPROVED The following items were discussed during executive session. a. Ongoing audits and investigations XII. ADJOURNMENT OF EXECUTIVE SESSION Chris Reneau made a motion to adjourn the executive session. Keri Lovato seconded. The executive session was adjourned at 3:45 pm. CITY OF CLARKSVILLE YEAR-TO-DATE BUDGET REPORT FOR 2027 13 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD EXPENDED ENCUMBRANCES BUDGET USED 1100 General Fund 10415211 Salaries and Wages-Inter.Audit 10415211 4111 Full-Time Employe 353,251 -11,743 341,508 12,675.56 .00 328,832.44 3.7% 10415211 4112 Part-Time Employe 2,700 0 2,700 .00 .00 2,700.00 .0% 10415211 4113 Longevity Pay 500 0 500 .00 .00 500.00 .0% 10415211 4211 Health Insurance 66,192 0 66,192 6,032.00 .00 60,160.00 9.1% 10415211 4212 Dental Insurance 1,656 0 1,656 138.00 .00 1,518.00 8.3% 10415211 4213 Life Insurance 212 0 212 17.44 .00 194.56 8.2% 10415211 4214 Disability Insura 1,519 0 1,519 54.50 .00 1,464.50 3.6% 10415211 4221 Social Security C 25,976 0 25,976 903.45 .00 25,072.55 3.5% 10415211 4231 TCRS Contribution 46,148 0 46,148 1,948.24 .00 44,199.76 4.2% TOTAL Salaries and Wages-Inter.Audit 498,154 -11,743 486,411 21,769.19 .00 464,641.81 4.5% 10415213 Operating Expenditures-Int.Aud 10415213 4321 Employee Training 10,400 4,650 15,050 .00 .00 15,050.00 .0% 10415213 4322 Memberships & Con 2,325 415 2,740 .00 .00 2,740.00 .0% 10415213 4323 Employee Testing 105 -105 0 .00 .00 .00 .0% 10415213 4324 Software License 42,200 -40,900 1,300 .00 .00 1,300.00 .0% 10415213 4325 Software Renewals 1,078 30,062 31,140 .00 .00 31,140.00 .0% 10415213 4334 Accounting/Auditi 87,000 -9,000 78,000 .00 .00 78,000.00 .0% 10415213 4442 Rental of Equipme 120 0 120 8.47 92.13 19.40 83.8% 10415213 4521 Property Insuranc 315 -31 284 258.15 .00 25.85 90.9% 10415213 4522 Automobile Insura 0 635 635 .00 .00 635.00 .0% 10415213 4523 General Liability 714 1,255 1,969 636.83 .00 1,332.17 32.3% 10415213 4530 Communications 381 -181 200 .00 .00 200.00 .0% 10415213 4580 Travel 100 0 100 .00 .00 100.00 .0% 10415213 4610 General Supplies 2,000 -500 1,500 .00 .00 1,500.00 .0% 10415213 4640 Books & Periodica 1,115 0 1,115 .00 .00 1,115.00 .0% TOTAL Operating Expenditures-Int.Aud 147,853 -13,700 134,153 903.45 92.13 133,157.42 .7% GRAND TOTAL 646,007 -25,443 620,564 22,672.64 92.13 597,799.23 3.7% ** END OF REPORT - Generated by Hammer, Emily ** Report generated: 07/23/2026 12:48 Page 1 User: ehammer Program ID: glytdbud Audit Plan Status The table below shows FY 2026 projects and their current status. Project Status Note Building & Codes Permitting Audit Completed Issued in October 2025 City General Contract Management Completed Issued in May 2026 Change Order Audit Clarksville Gas & Water Contract Management Change Order Audit FY 2026 Ethics Survey Completed Issued April 2026 IT Assessment Completed Completed April 2026 Wire Transfer Controls Advisory Completed Completed April 2026 Engagement Key Advisory Engagement Completed Completed June 2026 Senior Management Expense Audit Ongoing - (Calendar Years 2023-2024) Reporting Phase Ongoing/Recently Completed Project Hours Project Hours Actual Hours Budgeted City General Contract Management 1,278.75 1,000 Change Order Audit Clarksville Gas & Water Contract Management Change Order Audit Key Advisory Engagement 201 200  Senior Management Expense Audit 565.25 550 (Calendar Years 2023-2024) Post engagement feedback survey ratings Following all engagements, departments are asked to complete a feedback survey. The survey is intended to identify opportunities for continuous improvement by evaluating professionalism, communication, responsiveness, usefulness, and overall satisfaction. Departments can also enter suggestions for improvement and any additional comments. Since our last meeting, we have received two post engagement feedback surveys. Below is the summary of results. There were no additional suggestions or comments made. Average Response Question (Out of 5) Professionalism and courtesy of the audit team 5 Communication throughout the audit 5 Responsiveness to your concerns and suggestions 4 Usefulness of results and recommendations 4 Overall satisfaction 4.5 Hotline Activity We received 35 total hotline reports during FY 2026. 4 of these were received after the last regular committee meeting in April. All of the reports have been resolved and are considered closed. We have received 1 hotline report since July 1, 2026. This report has been resolved and is considered closed. Staff Metrics Continuing Professional Education Requirements Auditor Percentage of Required Hours Completed Stephanie 77.50% Emily 100% Kailee 57.50% Becca 57.50% Memo To: Audit Committee Members From: Stephanie Fox, Director of Internal Audit Date: July 24, 2026 Re: Reporting on the Quality Assurance and Improvement Program In accordance with Standards 8.3, 8.4, and 12.1 of the Global Internal Audit Standards (the Standards), we maintain a quality assurance and improvement program that includes both external and internal assessments of the department’s conformance with the Standards and progress toward performance objectives. The program has three main components where quality is evaluated. These components are described in the table below. Component Description Standard 8.4 External assessments or peer reviews are required to be External Assessment performed by qualified and independent reviewers every five years. Our most recent peer review was completed in October of 2023. The results of that review supported our conformance with the Standards. More information can be found on our website. Standard 12.1 Periodic self assessment is done each year during our Periodic Self Assessment department’s annual quality review. Details about the scope of this review, as well as the results for FY 2026, are listed in the paragraphs below. Standard 12.1 Ongoing monitoring is incorporated into the routine activities Ongoing Monitoring of the department and includes engagement supervision, as well as policies and procedures designed to ensure conformance with the Standards. We evaluate the effectiveness of those monitoring steps at the conclusion of each engagement. The review is limited and is documented within the workpapers for each engagement. Results of the Annual Quality Review for FY 2026 We perform an annual quality review of our work each year. Our process uses peer review resources from the Association of Local Government Auditors to evaluate our conformance with the Standards. Specifically, the annual quality review includes an evaluation of the department’s quality control systems and engagements during the year to confirm adherence to the Standards. This involves a review of: ●​ The Internal Audit Charter ●​ Departmental policies and procedures ●​ Continuing education records for department staff ​ This is our second annual quality review since implementation of the updated Standards which were released in 2024. We are happy to report the results of the FY 2026 review, which support conformance to the Standards at this time. In our evaluation, the Internal Audit Charter, policies, and procedures addressed requirements of the Standards. During the course of our review, we identified a limited number of areas where future policy updates may be beneficial. These updates will be evaluated further individually as we review policies and procedures this fall.  CITY OF CLARKSVILLE INTERNAL AUDIT FY 2026 ANNUAL REPORT Message Approved FY FY 2026 Ongoing Project Fraud & Audit from the 2027 Accomplishments Projects Highlights Hotline Director Projects Message from the Director As required by City Code Section 6-615, we are pleased to present this annual report to highlight the Internal Audit Department’s accomplishments and activities for FY 2026. This was a year of significant change for the Internal Audit Department. The most significant of which was the implementation of a new audit software that will modernize how we conduct and manage our audits and advisory projects. This software will improve our efficiency and effectiveness, and help us better demonstrate conformance with auditing standards. Additionally, we updated our audit reports to include a highlights page and significance ratings to help readers better understand audit results. We also redesigned our risk assessment and audit plan development process to better align our time and resources with the City’s strategies, priorities, and risks. Based on our FY 2026 audit plan, we completed a number of audits, advisory engagements, and other projects throughout the year. In our audits alone, we made 31 recommendations to improve City operations. Highlights from a selection of those projects are presented below. As we move into FY 2027, we look forward to completing our planned audits and advisory projects, while promoting transparency, accountability, and efficiency throughout City government. Stephanie Fox CPA, CIA, CMFO Director of Internal Audit 1 FY 2026 Accomplishments Below is a list of audits, investigations, and other activities completed during FY 2026. Building and Codes Permitting Audit City General Contract Management Change Order Audit Clarksville Gas and Water Contract Management Change Order Audit 2026 Ethics Survey and Informational Report Wire Transfer Advisory Engagement Key Advisory Engagement IT Assessment (Co-Sourced) Received and resolved 35 fraud hotline complaints Updated our departmental polices and procedures Redesigned our risk assessment and audit plan development process to better prioritize risks and audit projects Revised our department performance metrics to better align with our departmental goals and objectives Implemented audit software which modernizes our processes and improves efficiency and effectiveness Facilitated selection of a new CPA firm to perform the City’s annual financial and compliance audit Updated audit workpapers and departmental processes to make various improvements and better align with auditing standards Created an observation/risk rating system to better contextualize audit results for stakeholders Incorporated an audit highlights page in audit reports to provide a high level look at results Ongoing Projects This audit is conducted every 2 years and assesses the appropriateness of expenses for the Mayor, City Senior Management Expense Audit Council, and a selection of department heads. (CY 2023-2024) We anticipate this project to be completed in August 2026. 2 Project Highlights Building and Codes Permitting Audit This audit reviewed the permitting process for residential and commercial construction. Several areas were identified where process improvements can be made. Recommendations primarily focused on improving workflows, software access, and fee set up. City General & Clarksville Gas and Water Contract Management Change Order Audits Two change order audits were conducted concurrently, one for City General and one for Clarksville Gas and Water. Both audits reviewed processes and controls for change orders and identified opportunities for improvement. Recommendations focused on documentation, approvals, policy guidance, and tracking. Fraud and Audit Hotline Internal Audit is also responsible for managing the City’s fraud hotline. The hotline can be used by anyone to report activity by City employees or City officials that is illegal, improper, wasteful, or fraudulent. Reports are confidential and can be made on our website (linked here), or by calling 931-648-6166. We received and resolved 35 hotline reports during FY 2026. As shown in the chart, the number of reports received has increased steadily since 2024. 3 Draft FY 2027 Projects We develop an audit plan to guide our work during each fiscal year. The audit plan is based on a City-wide risk assessment which looks at every department. This plan is then presented to the Audit Committee for approval. For fiscal year 2027, the Audit Committee has approved the following projects. Senior Management Expense Audit CY 2023-2024 (ongoing from FY 2026) Traffic Sign Management Audit Abatement Billing & Liens Audit Emergency Vehicle Supplies and Equipment Audit Transit Fare Collection Audit Employee Offboarding Audit Public Records Requests Audit Follow Up Assessments on Prior Audits Contact Us Address: 1 Public Square, Suite 315 | Clarksville, TN 37040 Phone: 931-648-6106 Website: www.clarksvilletn.gov/275/Internal-Audit Fraud Hotline: 931-648-6166 4 City of Clarksville Internal Audit FY 2027 Audit Plan - DRAFT Audit Services This audit is ongoing from FY 2026. This audit is conducted every two years and reviews the appropriateness of expenses for a selection of city leaders. Senior Management Expense Departments in Scope: Mayor’s Office, City Council, Various Department Audit (CY 2023-2024) Heads This audit will review traffic sign management processes and related controls. Department in Scope: Street Traffic Sign Management This audit will assess the abatement billing & liens process, including departmental roles and coordination. Departments in Scope: Building & Codes, Finance Abatement Billing & Liens This audit will examine processes for ensuring emergency vehicles are properly stocked with supplies and equipment. Emergency Vehicle Supplies Department in Scope: Fire and Equipment This audit will review transit fare collection processes and related controls. Transit Fare Collection Department in Scope: Transit 1  Audit Services (continued) This audit will assess the employee offboarding process, focusing on information transmission and departmental responsibilities. Employee Offboarding Departments in Scope: HR, Finance, Information Technology This audit will review public records request processes for compliance with Tennessee public records requirements. Public Records Requests Department in Scope: Legal Advisory Services While there are no advisory services currently scheduled, departments may Potential Advisory request advisory engagements at any point throughout the year. Engagements Other Projects In addition to audits and advisory engagements, Internal Audit is responsible for several ongoing projects throughout the year. Below are some of the key projects. These investigations are a result of reports to the City’s Fraud and Audit Hotline. Investigations are conducted as reports are received. Hotline Investigations 2  Other Projects (continued) These assessments check the status of audit observations and recommendations from prior audits. Follow Up Assessments This project is a risk assessment of all departments in the City. It serves as the basis for our audit plan for next fiscal year. Annual Risk Assessment 3  ​City of Clarksville​ ​Internal Audit Manual​ ​Policy Number​ ​00​ ​Review Cycle​ ​Annual​ ​Subject​ ​Charter​ ​Audit Committee​ ​Purpose​ ​The Audit Committee of the City of Clarksville is established in Article VI Section 5 of the City of​ ​Clarksville Charter (the City Charter) and Clarksville City Code (City Code) Section 6-603 to​ ​provide an independent review and oversight of the City’s financial reporting processes and the​ ​City’s internal controls. The Audit Committee also reviews the external auditors’ reports and​ ​follows up on management’s corrective action and compliance with laws, regulations, and​ ​ethics. Additionally, the Audit Committee provides oversight of the Internal Audit Department’s​ ​independent appraisal function.​ ​Authority and Responsibilities​ ​To establish, maintain, and assure that the City of Clarksville's Internal Audit Department has​ ​sufficient authority to fulfill its duties, the Audit Committee will:​ ​●​ ​Discuss the Internal Audit Mandate with the Director, including the appropriate​ ​authority, role, and responsibilities of Internal Audit.​ ​●​ ​Discuss and approve the Internal Audit Department’s charter annually.​ ​●​ ​Champion the department to enable it to fulfill the purpose of internal auditing and​ ​pursue its strategy and objectives.​ ​●​ ​Assess the effectiveness and efficiency of the Internal Audit Department.​ ​●​ ​Approve the risk-based internal audit plan as described in City Code Section 6-615(a).​ ​●​ ​Guide and direct the Director of Internal Audit.​ ​●​ ​Approve the Internal Audit Department’s budget and resource plan, subject to approval​ ​of the overall budget of the City approved by the City Council.​ ​●​ ​Receive communications from the Director of Internal Audit on the Internal Audit​ ​Department’s performance relative to its plan and other matters.​ ​●​ ​Approve decisions regarding the appointment and removal of the Director of Internal​ ​Audit as described in the City Charter and City Code Section 6-614(f).​ ​●​ ​Review and evaluate the performance of the Director of Internal Audit in accordance​ ​with the City Charter and City Code Section 6-614(e).​ ​●​ ​Fix the compensation of the Director of Internal Audit within the amount appropriated​ ​therefore by the City Council as described in the City Charter.​ ​Internal Audit Manual​ ​Page​​2​​of​​60​  ​●​ ​Make appropriate inquiries of management and the Director of Internal Audit to​ ​determine whether there are inappropriate scope or resource limitations.​ ​●​ ​Review and select, pursuant to state law of general application, the external auditors​ ​required by the City, to include all City departments and activities, and blended​ ​component units, for financial, performance, internal, or other special audits per City​ ​Code Section 6-609. The awarding of all external audit contracts shall be at the​ ​discretion of the Audit Committee, except that discretely presented component units​ ​may select their own external auditor. No member of the Audit Committee shall be a​ ​member of any audit firm that is awarded an audit engagement.​ ​●​ ​Review the external auditors' reports and follow up on management's corrective action​ ​and compliance with laws, regulations, and ethics in accordance with City Code Section​ ​6-603.​ ​●​ ​Adhere to all remaining City Code sections pertaining to the Clarksville Audit Committee​ ​not specifically listed within this Charter.​ ​The Audit Committee expects that management will provide support for the Internal Audit​ ​Department, including meeting applicable essential conditions established in the Standards.​ ​Internal Audit Department​ ​Purpose and Mission​ ​In accordance with the City of Clarksville’s City Code (City Code) Section 6-602, the purpose of​ ​the Internal Audit Department is to assist all levels of management of the City and its​ ​component units in the effective discharge of their responsibilities by furnishing them with​ ​analyses, appraisals, recommendations, counsel, and information concerning the activities​ ​reviewed by Internal Audit and promoting effective control at a reasonable cost. In addition to​ ​the purpose as defined in City Code, Internal Audit adheres to the purpose statement in Domain​ ​I of the Global Internal Audit Standards.​ ​In support of the established purpose, the department’s mission statement is to ensure public​ ​trust and promote transparency, accountability, efficiency, and continuous improvement​ ​throughout City government.​ ​To fulfill this purpose and mission, the department will provide audit and advisory services​ ​related to City operations to management and those charged with governance. These services​ ​will be provided in an objective and independent manner. Services may address areas of​ ​internal controls, operational efficiency and effectiveness, compliance with laws and​ ​regulations, or financial integrity.​ ​The department provides a risk based, systematic, disciplined approach to evaluate and improve​ ​the effectiveness of governance, risk management, and control processes throughout the City.​ ​This approach helps the City accomplish its objectives and fulfill its responsibility to citizens and​ ​the resources they have entrusted to the City.​ ​Internal Audit Manual​ ​Page​​3​​of​​60​  ​International Professional Practices Framework and Global Internal Audit​ ​Standards​ ​As required by City Code Section 6-610, the City of Clarksville Internal Audit Department will​ ​govern itself by adhering to the mandatory elements of The Institute of Internal Auditors' (IIA)​ ​International Professional Practices Framework (IPPF), including the Global Internal Audit​ ​Standards (the Standards). In addition, Internal Audit will adhere to the policies and procedures​ ​contained in the Internal Audit Department's manual, as approved by the Audit Committee.​ ​Mandate​ ​Authority​ ​The City of Clarksville Charter Article VI (the City Charter) establishes the existence of a​ ​Department of Internal Audit as an independent agency of the City of Clarksville government,​ ​which shall be headed by a Director of Internal Audit. The Director of Internal Audit shall be a​ ​certified public accountant as defined in City Code Section 6-614(b), and will report functionally​ ​and administratively to the City Audit Committee (Audit Committee) as required by the Charter.​ ​Additionally, both the City Charter, Article VI Section 5(e) and the City Code Section 6-611 state​ ​that authority is granted for full, free, and unrestricted access to any and all of the City's​ ​records, physical properties, and personnel relevant to any function under review. Internal​ ​Audit's authority shall extend to all City departments, component units, and any other​ ​organization or individual that receives City funds. All employees shall assist Internal Audit in​ ​fulfilling their staff function. Internal Audit shall also have free and unrestricted access to the​ ​Mayor and the City Council.​ ​The Director of Internal Audit will have unrestricted access to, and communicate and interact​ ​directly with, the Audit Committee, including in meetings without management present in​ ​accordance with TCA 9-3-405(d).​ ​The Audit Committee also authorizes the Internal Audit Department to allocate resources, set​ ​frequencies, select subjects, determine scopes of work, apply audit techniques required to​ ​accomplish audit objectives, and issue reports.​ ​Further, the Audit Committee authorizes the department to obtain assistance or specialized​ ​services from within or outside the City of Clarksville where required to complete engagements.​ ​This is subject to budgetary constraints.​ ​Roles​ ​The City Charter and City Code direct the department to conduct financial, performance, and​ ​other audit functions and services determined by the Audit Committee. The Director has no​ ​roles or responsibilities outside of the Internal Audit Department.​ ​Responsibilities​ ​As noted in the purpose section of this charter, the department has a responsibility to assist all​ ​levels of management of the City and its component units in the effective discharge of their​ ​Internal Audit Manual​ ​Page​​4​​of​​60​ ​responsibilities by furnishing them with analyses, appraisals, recommendations, counsel, and​ ​information concerning the activities reviewed by the department and promoting effective​ ​control at reasonable cost.​ ​The Internal Audit Department fulfills this purpose by providing an array of audit and advisory​ ​services for City departments, as well as administering the City’s fraud hotline. Further details​ ​on the services provided can be found in the Scope of Work section of this charter.​ ​Independence and Organizational Position​ ​Both the Director of Internal Audit and the Internal Audit Department are structured within the​ ​City to ensure independence. The City Charter and City Code both support this independence​ ​by establishing that the Director reports both functionally and administratively to the Audit​ ​Committee, rather than the Mayor or City Council. The City Charter and City Code also outline​ ​the responsibilities of the Audit Committee to support those reporting relationships.​ ​Further, City Code Section 6-612 states that all audit activities shall remain free of influence by​ ​any element in the organization, including matters of audit scope, procedures, frequency,​ ​timing, or report content to permit maintenance of an independent mental attitude necessary​ ​in rendering objective reports. Internal auditors shall have no direct operational responsibility or​ ​authority over any of the activities they review. Additionally, they shall not develop nor install​ ​systems or procedures, prepare records, or engage in any other activity that would normally be​ ​audited.​ ​Independence and objectivity in performing internal audit services are the responsibility of​ ​every auditor. Auditors must recognize actual, potential, or perceived impairments to​ ​independence or objectivity, and immediately bring those to the Director to be addressed.​ ​The Director of Internal Audit will confirm to the Audit Committee, at least annually, the​ ​organizational independence of the Internal Audit Department.​ ​The Director of Internal Audit will disclose to the Audit Committee any potential impairments to​ ​independence, including interference and related implications in determining the scope of​ ​internal auditing, performing work, and/or communicating results.​ ​Scope of Work​ ​As stated in the City Code Section 6-613, the scope of Internal Audit encompasses (but is not​ ​limited to) the examination and evaluation of the adequacy and effectiveness of the City's​ ​system of internal control structure and the quality of performance in carrying out assigned​ ​responsibilities to achieve the City's stated goals and objectives. These activities, known as​ ​assurance or audit services, provide independent assessments to the Audit Committee, the​ ​Mayor, the City Council, management, and outside parties on the adequacy and effectiveness of​ ​governance, risk management, and control processes for the City of Clarksville. Internal Audit​ ​assessments include:​ ​●​ ​Evaluating whether risks relating to the achievement of the City of Clarksville’s strategic​ ​objectives are appropriately identified and managed​ ​●​ ​Evaluating whether the actions of the City of Clarkville’s governing body, directors,​ ​Internal Audit Manual​ ​Page​​5​​of​​60​  ​employees, and contractors are in compliance with the City of Clarksville’s policies,​ ​procedures, and applicable laws, regulations, and governance standards​ ​●​ ​Reviewing​ ​operations​ ​or​ ​programs​ ​to​ ​ascertain​ ​whether​ ​results​ ​are​ ​consistent​ ​with​ ​established​ ​objectives​ ​and​ ​goals,​ ​and​ ​whether​ ​the​ ​operations​ ​or​ ​programs​ ​are​ ​being​ ​carried out as planned​ ​●​ ​Reviewing and appraising the economy and efficiency with which resources are​ ​employed​ ​●​ ​Reviewing​ ​the​ ​systems​ ​established​ ​to​ ​ensure​ ​compliance​ ​with​ ​those​ ​policies,​ ​plans,​ ​procedures,​ ​laws,​ ​and​ ​regulations,​ ​which​​could​​have​​a​​significant​​impact​​on​​operations​ ​and reports, and whether the organization is in compliance​ ​●​ ​Reviewing the reliability and integrity of financial and operating information and the​ ​means used to identify, measure, classify, and report such information​ ​●​ ​Evaluating whether resources and assets are acquired economically, used efficiently,​ ​protected adequately, and, as appropriate, verifying the existence of such assets​ ​●​ ​Reviewing specific operations at the request of the Audit Committee, Mayor, or Chief​ ​Financial Officer (also referenced as Director of Finance and Revenue), as appropriate​ ​●​ ​Reviewing or investigating matters at the request of the Tennessee Comptroller of the​ ​Treasury​ ​●​ ​Reviewing​ ​the​ ​quality​ ​of​ ​performance​ ​of​ ​the​ ​external​ ​auditors​ ​and​ ​the​ ​degree​ ​of​ ​coordination with Internal Audit​ ​Director​ ​The Director of Internal Audit is established in the City Charter Article VI, Section 5. This section​ ​mandates that the Director shall be appointed by the Mayor upon nomination by the Audit​ ​Committee, subject to confirmation by the City Council. It further specifies that the Director​ ​shall possess at least one certification indicating proficiency in auditing or governmental​ ​financial management, and lists acceptable types of experience and knowledge.​ ​City Code Section 6-614 refines these requirements and specifies that the Director shall be a​ ​Certified Public Accountant.​ ​These requirements help ensure that the Director has the appropriate qualifications and​ ​knowledge to carry out the Internal Audit mandate. Human resources maintains a job​ ​description with more specific requirements.​ ​The Director will maintain and enhance qualifications and competencies necessary to fulfill roles​ ​and responsibilities expected by the Audit Committee.​ ​The Director of Internal Audit has the responsibility to:​ ​●​ ​Develop and implement a strategy for the internal audit function that supports the​ ​strategic objectives and success of the City.​ ​●​ ​Review the strategy with the Audit Committee and senior management periodically.​ ​Internal Audit Manual​ ​Page​​6​​of​​60​ ​●​ ​Establish and evaluate methodologies to guide the department in a systematic and​ ​disciplined manner to implement internal audit strategy, develop the internal audit plan,​ ​and conform to the Standards.​ ​●​ ​Submit, at least annually, to the Audit Committee a risk-based internal audit plan for​ ​review and approval, and communicate the approved plan to senior management.​ ​●​ ​Communicate to senior management and the Audit Committee the impact of resource​ ​limitations on the internal audit plan.​ ​●​ ​Review and adjust the internal audit plan in response to changes in the City of​ ​Clarksville’s risks, operations, programs, systems, and controls.​ ​●​ ​Communicate to senior management and the Audit Committee any significant interim​ ​changes to the internal audit plan.​ ​●​ ​Communicate any changes that potentially affect the mandate or department charter.​ ​●​ ​Submit an annual report to the City Council at the end of each fiscal year disclosing all​ ​completed audits and investigations.​ ​●​ ​Ensure each engagement of the internal audit plan is executed, including the​ ​establishment of objectives and scope, the assignment of appropriate and adequately​ ​supervised resources, the documentation of work programs and testing results, and the​ ​communication of engagement results with applicable conclusions and​ ​recommendations to appropriate parties.​ ​●​ ​Distribute the final engagement communication to appropriate parties. The Director of​ ​Internal Audit is the only person who has the authority to issue an audit report.​ ​●​ ​Follow up on engagement findings and corrective actions, and report periodically to​ ​senior management and the Audit Committee any corrective actions not effectively​ ​implemented.​ ​●​ ​Ensure the principles of integrity, objectivity, confidentiality, and competency are applied​ ​and upheld.​ ​●​ ​Ensure the Internal Audit Department collectively possesses or obtains the knowledge,​ ​skills, and other competencies needed to meet the requirements of the Internal Audit​ ​Charter.​ ​●​ ​Ensure trends and emerging issues that could impact the City of Clarksville are​ ​considered and communicated to senior management and the Audit Committee as​ ​appropriate.​ ​●​ ​Ensure emerging trends and successful practices in internal auditing are considered.​ ​●​ ​Establish and ensure adherence to policies and procedures designed to guide the​ ​Internal Audit Department.​ ​●​ ​Ensure adherence to the City of Clarksville’s Charter, Code, and relevant policies and​ ​procedures, unless such policies and procedures conflict with the Internal Audit Charter.​ ​Any such conflicts will be resolved or otherwise communicated to senior management​ ​and the Audit Committee.​ ​●​ ​Ensure conformance of the Internal Audit Department with the Global Internal Audit​ ​Standards​,​​unless the Internal Audit department is​​prohibited by law or regulation from​ ​conformance with certain parts of the Standards​.​​The​​Director of Internal Audit​​will​ ​ensure appropriate disclosures are made to senior management and the Audit​ ​Committee and will ensure conformance with all other parts of the Standards​.​ ​Internal Audit Manual​ ​Page​​7​​of​​60​  ​●​ ​Establish a process by which employees, taxpayers, or other citizens may confidentially​ ​report suspected illegal, improper, wasteful, or fraudulent activity in accordance with​ ​City Code Section 6-617.​ ​Approval/Acknowledgement​ ​Director of Internal Audit​ ​Date​ ​Audit Committee Chair​ ​Date​ ​Mayor of the City of Clarksville​ ​Date​ ​Internal Audit Manual​ ​Page​​8​​of​​60​