(A) Purposes. This policy is intended to comply with I.C. 5-11-1-27 and State Examiner Directive 2015-6.
(B) Materiality threshold.
(1) The materiality threshold for the town shall be $250. If the erroneous or irregular variance, loss, shortage or theft is not cash or a cash-equivalent, the value of the item at the time of the variance, loss, shortage or theft shall be used to determine whether the materiality threshold has been met.
(2) All erroneous or irregular variances, losses, shortages, or thefts of $250 or more shall be reported immediately to the State Board of Accounts. In addition, all erroneous, or irregular variances, losses, shortages, or thefts which occur more than one time in a month and which in the aggregate total $250 or more shall be reported immediately to the State Board of Accounts, and to the Town Council.
(C) Knowledge of misappropriation. A public officer who has knowledge of or reasonable cause to believe that there has been a misappropriation of public funds or assets of the public office shall immediately send written notice of the misappropriation to the Indiana State Board of Accounts and the Benton County Prosecuting Attorney.
(D) Maintenance of documentation. The town shall maintain records and documentation concerning erroneous or irregular variances, losses, shortages or thefts in accordance with generally-accepted accounting principles and the internal control standards provided by the Indiana State Board of Accounts.
(E) Resolution of incidents not meeting the materiality threshold. The town shall investigate all erroneous or irregular variances, losses, shortages, or thefts, regardless of whether they meet the materiality threshold established by this policy. Upon conclusion of each such investigation, the town shall:
(1) Implement procedures designed to prevent the recurrence of such incidents; and
(2) Take appropriate disciplinary action against the employee responsible for the incident.
(Res. 2016-08.09B, passed 8-9-2016)