(A) The Finance Director is responsible for establishing and maintaining an internal control structure designed to insure that the assets of the city are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that the cost of the control should not exceed the benefits likely to be derived; and the valuation of costs and benefits require estimates and judgments by management.
(B) Accordingly, the Finance Director shall establish a process for annual independent review by an external auditor to assure compliance with policies and procedures.
(C) The internal controls (see Appendix E) shall address the following points:
(1) Control of collusion;
(2) Separation of transaction authority from accounting and record keeping;
(3) Custodial safekeeping;
(4) Avoidance of physical delivery securities;
(5) Clear delegation of authority to subordinate staff members;
(6) Written confirmation of telephone transactions for investments and wire transfers; and
(7) Development of a procedure for making wire transfers.
(Prior Code, § 38.14) (Ord. 99-286, passed 12-14-1999)