Statement by Proponents/Authors of Arguments

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Statement in favor of Measure E The Charter should be changed to provide for the appointment of a City Auditor reporting directly to the City Council. Currently the city auditor reports to the City Manager. Separation of duties ensures that financial execution and review are not overseen by the same person. Separation is improved when the auditor is appointed by and reports directly to the City Council which is consistent with their overall fiduciary role. There would be no direct cost increase resulting from this change. The current staff and functions would simply be moved to report to the City Council instead of the city manager. The annual, legally- required, external audit would not be affected. Many large cities in California have council - appointed city auditors. The increased independence of the audit function fosters transparency, citizen confidence, and legislative accountability. It should be noted that this item was the single most requested suggestion by those testifying before the Charter Review Committee in 2011. The consistent theme of the comments is that this new position will increase citizen confidence in the decisions made by City management in terms of both fiscal and operational matters. To provide flexibility over time, the exact powers and duties of the City Auditor would be detailed by ordinance adopted by the City Council. The duties would likely include financial performance and special operational audits, development of an annual audit plan, and regular reports to the City Council. We recommend a yes vote on Measure E Monty Wart — Charter Review Committee Member Peter Benavi• - Charter Review Committee Member Joan Donahue — Leag - f Womb' eters, President 7 • -Y3