An ordinance amending the Metropolitan Code of Laws relative to Audits.

Whereas, on November 7, 2006, the voters of Davidson County, Tennessee, approved an amendment to the Charter of the Metropolitan Government by adding a new Section 8.121 thereto to establish a new and independent Department of Audit directed by the newly-created position of Metropolitan Auditor and generally overseen by a newly created Metropolitan Audit Committee; and

Whereas, the Metropolitan Code of Law contains several provisions relating to internal audits and the Council Audit Committee; and

Whereas, certain of those provisions of the Metropolitan Code now conflict in whole or in part with the Metropolitan Charter amendment and should be repealed in order to avoid confusion.

Now, therefore, be it enacted by the Council of The Metropolitan Government of Nashville and Davidson County:

Section 1. That Sections 2.24.100, 2.24.101 and 2.24.102 of the Metropolitan Code of Laws are hereby repealed and should be deleted from the Metropolitan Code.

Section 2. That Chapter 2.24 of the Metropolitan Code of Laws be and the same is hereby amended by adding the following new Article IV:

Sec. 2.24.300. Division of Metropolitan Audit.

A. There shall be, as an independent agency of the metropolitan government, a division of metropolitan audit, the director of which is designated as the metropolitan auditor. The metropolitan auditor shall be a person:

1. with a well founded reputation in government or public finance and the audit function as may be exhibited by a record of exceptional performance for at least five (5) years as a financial officer of a government or business;

2. who has, through education and experience as an accountant, auditor, CFO, controller or principal accounting officer of a governmental entity or private business an understanding of Generally Accepted Accounting Principles, Governmental Auditing Standards Board standards, financial statements, internal controls and procedures for financial reporting, and the audit functions of a governmental entity.

B. The metropolitan auditor shall be appointed by a majority vote of the council from a list of three (3) persons recommended by the audit committee whom the audit committee deems best qualified and available to fill the position. If the council deems that the persons recommended by the audit committee to serve as metropolitan auditor are not suitable and/or qualified, the council shall reject the names submitted and the audit committee shall recommend three additional persons deemed qualified and available to fill the position. The metropolitan auditor shall serve a term of eight (8) years but shall be subject to removal for cause during the term by a vote of four members of the audit committee. The first term of the metropolitan auditor will end on June 30, 2014, regardless of whether the full eight years has been served. A vacancy occurring during a term shall be filled temporarily with a qualified acting metropolitan auditor by the majority vote of the audit committee. The filling of the vacancy for the remainder of a term and for any new term shall be filled by a majority vote of the council through the process provided in this section. The compensation for the metropolitan auditor shall be established as part of the general pay plan provided by section 12.10 of the Metropolitan Charter.

C. The metropolitan auditor shall conduct, or cause to be conducted financial, performance and other audit services following Government Auditing Standards established by the United States Government Accountability Office, and the metropolitan auditor shall follow the independent and other professional standards established and published under Government Auditing Standards.

D. The metropolitan auditor shall appoint and remove, subject to the civil service provisions of article 12 of this Charter, all officers and employees of the division.

E. There shall be a metropolitan audit committee which shall be composed of six (6) members, as follows: The vice mayor and the director of finance shall be members by virtue of their official positions. Two (2) members of the metropolitan county council shall be selected by that body from its membership to serve a two (2) year term. One (1) member shall be selected by the Nashville Area Chamber of Commerce to serve a four (4) year term. One (1) member shall be selected by the Nashville Chapter of the Tennessee Society of Certified Public Accountants to serve a four (4) year term except that the member first selected shall serve a two year term. Members shall be eligible to succeed themselves. The General Provisions of Article 11, Chapter 1, of this Charter shall be applicable to the audit committee unless otherwise specified in this section.

F. The audit committee will oversee the annual audit plan, fix the compensation of the metropolitan auditor, and review and evaluate at least annually the performance of the metropolitan auditor.

G. All audit reports issued by the metropolitan auditor are public documents and shall at all times, during business hours, be open for personal inspection by any citizen of Tennessee.

Section 3. That nothing in this ordinance shall be construed to conflict with the duties and the responsibilities of the director of finance as set out in state law, the Metropolitan Charter, including but not limited to Section 8.103 of the Metropolitan Charter, or other provisions of the Metropolitan Code of Laws.

Section 4. That the two (2) members appointed by the Metropolitan County Council to the Metropolitan Audit Committee created by Section 8.121 of the Metropolitan Charter shall be Councilmember Michael Craddock and Councilmember Jim Gotto, each to serve a two (2) year term.

Section 5. That this Ordinance shall take effect from and after its passage, the welfare of The Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Michael Craddock, Jim Gotto, Jim Shulman, Eric Crafton, Vivian Wilhoite, Billy Walls, Rip Ryman, Brenda Gilmore, Greg Adkins


Introduced: February 6, 2007
Passed First Reading: February 6, 2007
Referred to: Budget & Finance Committee
Passed Second Reading: February 20, 2007 
Passed Third Reading: March 20, 2007
Approved: March 21, 2007