(Washington, DC) District of Columbia Chief Financial Officer Natwar M. Gandhi today announced the establishment of the Audit Committee to Review Financial Management and Internal Controls as another important step toward strengthening the District’s financial operations for the long term following the recent changes in the Office of Tax and Revenue.
The Committee will assist the CFO in reviewing the internal control structures of the OCFO’s financial management operations, as well as its compliance with existing policies and procedures. The distinguished leadership of the Committee includes (biographical briefs follow below):
- Sheldon Cohen, Chair (Director at Farr, Miller & Washington, LLP);
- Donald H. Chapin (Retired, Director of Auditing, Arthur Young & Company);
- John Hill (Chief Executive Officer of the Federal City Council);
- James Hudson (Retired, Chairman of the JAH Development); and
- Irving Pollack (Of Counsel, Fulbright & Jaworski).
The Committee’s overriding objective is to review the performance of the Office of the Chief Financial Officer and the OCFO function in each District agency. The Committee will provide quarterly reports on its findings and recommendations
“The Office of the Chief Financial Officer must rebuild the trust and credibility that has been damaged by the allegations of gross impropriety in the Office of Tax and Revenue,” said Gandhi, in unveiling the Committee members today. “I want this Committee to carefully and completely scrutinize our operations throughout the District. I very much appreciate the members’ willingness to serve, and I pledge them the OCFO’s full support.”
“We will give this committee our full cooperation and support,” said Mayor Adrian Fenty. “These individuals are committed to the District, and we expect our financial management controls will benefit from their experience and diligence.”
“This is a step in the right direction,” said Finance and Revenue Committee chairman Jack Evans. “We have a long road ahead of us and the assistance of this committee will be invaluable.”
The Committee will be guided by the advice published in 1995 in OMB circular A-123, Management Accountability and Control, as well as the standards for reviewing the adequacy of internal controls contained in the Sarbanes-Oxley Act of 2002. The formation of an audit committee is also recommended to assist states and municipalities in complying with the GAO’s new Government Auditing Standards (The Yellow Book), issued in July 2007 for implementation in 2008, making the District among the first major jurisdictions to have an audit committee assisting in Yellow Book compliance.
The Executive Office of the Mayor, the District Council and the Inspector General will each have a liaison to the Audit Committee.
The Committee has agreed to begin its work by reviewing the financial operations of the Office of the Chief Financial Officer. Their work is expected to begin immediately.
A more detailed explanation of the Committee’s mission and principles follows, as well as the previously referenced biographies of Committee members.
Financial Management and Internal Controls Organizational Summary