The city adopts and directs the following principles in explanation of the pertinent standards above be followed at all levels of the city government:
(A) Control environment.
(1) The Internal Control Committee, hereinafter named, City Department Heads and the Common Council, as the fiscal body of the city, (hereinafter collectively referred to as "Management") demonstrate a commitment to integrity and ethical values.
(2) The Internal Control Committee oversees the city's internal control system, while the Clerk Treasurer, as the chief fiscal officer of the city, shall implement and manage the internal control policies and procedures.
(3) Management establishes an organizational structure, assigns responsibility and delegates authority to achieve the city's objectives.
(4) Management demonstrates a commitment to attract, develop and retain competent individuals.
(5) Management evaluates performance and holds individuals accountable for their internal control responsibilities.
(B) Risk assessment.
(1) Management defines objectives clearly to enable the identification of risks and defines risk tolerances.
(2) Management identifies, analyzes and responds to risk related to achieving the defined objectives.
(3) Management considers the potential for fraud when identifying, analyzing and responding to risks.
(4) Management identifies, analyzes and responds to significant changes that could impact the internal control system.
(C) Control activities.
(1) Management designs control activities to achieve objectives and respond to risks.
(2) Management designs the city's information system and related control activities to achieve objectives and respond to risks.
(3) Management implements control activities through policies.
(D) Information and Communication.
(1) Management uses quality information to achieve the city's objectives.
(2) Management internally communicates the necessary quality information to achieve the city's objectives.
(3) Management externally communicates the necessary quality information to achieve the city's objectives.
(E) Monitoring.
(1) Management establishes and operates monitoring activities to monitor the internal control system and evaluate the results.
(2) Management remediates identified internal control deficiencies on a timely basis.
(Ord. 2016-05, passed 6-7-2016)