Title
Internal Audit Charter
The Board of Water Commissioners for the City of Detroit, Water and Sewerage Department that it votes to approve adoption of the Internal Audit Charter, which shall replace and supersede the existing Internal Audit Charter, and, additionally, void and make ineffective the existing Internal Audit Governance Policy and the existing Internal Audit Activities and Reporting Policy, pending forthcoming replacement policies, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
Body
City of Detroit Board of Water Commissioners
Agenda of May 20, 2026
Item No. 2026-108
Amount: N/A
TO: The Honorable
Board of Water Commissioners
City of Detroit, Michigan
FROM: Gary Brown, Director
Detroit Water and Sewerage Department
RE: Approval of the Internal Audit Charter
MOTION:
Upon recommendation of Samantha Camarena, Internal Audit Manager, the Audit Committee recommends to the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department that it votes to approve adoption of the Internal Audit Charter, which shall replace and supersede the existing Internal Audit Charter, and, additionally, void and make ineffective the existing Internal Audit Governance Policy and the existing Internal Audit Activities and Reporting Policy, pending forthcoming replacement policies, and also authorizes the Director to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND AND JUSTIFICATION:
In 2019, the Detroit Water & Sewerage Department (“DWSD”) first sought to implement an Internal Audit function and took such actions, approved by the Board of Water Commissioners for the City of Detroit, Water and Sewerage Department (“BOWC”), including hiring an Internal Audit Manager and adopting the (1) Internal Audit Charter, (2) Internal Audit Governance Policy, and (3) Internal Audit Activities and Reporting Policy. However, due to the COVID-19 global pandemic and the significant organizational impacts, designing and implementing an Internal Audit function was not possible.
In November 2025, DWSD hired an Internal Audit Manager charged with designing, implementing, and managing the new Internal Audit function of the Department. During its regular meeting in January 2026, the BOWC approved an amendment to Article IX of its by-laws to establish an Audit Committee, which reports to the BOWC and is chaired by the Chairperson of the Finance Committee, to oversee the Department’s internal audit activities. During its regular meeting in April 2026, the BOWC approved the motion to adopt the Audit Committee Charter, which establishes the authority, roles, and responsibilities for the Audit Committee in supporting and providing independent oversight of the Department’s Internal Audit function, and all related internal auditing activities, including advising on the internal audit mandate and Internal Audit Charter.
The Internal Audit Charter documents the internal audit mandate, which establishes the authority, role, and responsibilities of the Internal Audit function, in addition to documenting the scope and type of activities to be performed by DWSD internal auditors. Adoption of the Internal Audit Charter by the BOWC shall effectively replace and supersede the existing Internal Audit Charter, and formally authorize the design and implementation of the updated DWSD Internal Audit function. That function shall be operated under the leadership of the Internal Audit Manager, which in turn, operates under the independent oversight of the Audit Committee.
Additionally, adoption of this Internal Audit Charter will void the existing Internal Audit Governance Policy and the existing Internal Audit Activities and Reporting Policy as the result of significant recent changes in the international professional standards for the practice of internal auditing. The Internal Audit Manager, in adherence to the current professional standards, shall develop new replacement policies for the Internal Audit function and present to polices for review and approval by the BOWC.
BUDGET IMPACT:
There is no budget impact to DWSD.
COMMITTEE REVIEW:
At the Audit Committee’s meeting on May 6, 2026, the Internal Audit Charter has been reviewed and recommended for BOWC approval.