PURPOSE:

The Audit Committee is responsible for recommending the selection of external auditors to the Town Council, receiving, reviewing and forwarding to the Town Council the external auditor's annual financial report, and such other matters as may warrant its attention.

MEMBERSHIP OF THE COMMITTEE:

The Audit Committee shall be comprised of three or more town residents as determined and appointed annually by the Town Council, each of whom shall be free from any relationship that, in the opinion of the Town Council, would interfere with the exercise of his or her independent judgment as a member of the Committee.

SCOPE OF AUDIT COMMITTEE WORK:

In accomplishing its assigned responsibilities, the Audit Committee will review the following listed matters and such other matters as may warrant its attention.  It may, with approval of the Town Council, engage additional assistance to undertake such reviews of financial management performance as it deems necessary.

Recommend to the Town Council the selection of external auditors and the annual fees to be paid for their services and to recommend to the Town Council any proposed retention or discharge of the external auditors.

Review the external auditor's annual financial statements and reports including compliance of the Town's accounting and financial management systems and reports with generally accepted principles for municipal governments.

Review the annual financial management letter of the external auditors.

Periodically see that the Town's system of internal controls and insurance coverage are reviewed to assure they are deemed to be adequate.

As a consequence of the above, make any recommendations to the Town Council it considers to be desirable.