(A) The acceptable minimum level of internal control standards and procedures developed under I.C. 5-11-1-27(e) by the SBOA contained in the Uniform Internal Control Standards for Indiana Political Subdivision manual, are herein-adopted by Decatur County and that county personnel receive training concerning the internal control standards and procedures hereby adopted.
(B) Materiality, in Decatur County Government, is defined is $100 per occurrence. That is, if one occurrence of a loss or shortage or other irregularity is equal or greater than $100, it must be reported to the State Board of Accounts, The materiality definition is not limited to defalcations or suspicious activity involving only cash or cash transactions. If supplies, equipment or other fixed assets belonging to the county are suspected of being non-appropriated or stolen or used in a manner not authorized by Decatur County officials and the value of those supplies, equipment or fixed assets are approximately $100, that misuse or series of misuse should be reported. That is not to say that if a loss or shortage is less than $100 it should be ignored. If there is a series of events, within the same office or department that appears to be a structuring event to defraud or misappropriate county funds or property, that event or series of events should be reported.
(C) All erroneous or irregular material variances, losses, shortages, or thefts of political subdivision funds or property shall be reported immediately to the State Board of Accounts. For all material variances, losses, shortages, or thefts, the State Board of Accounts shall:
(1) Determine the amount of funds involved and report the amount to the appropriate government and law enforcement officials;
(2) Determine the internal control weakness that contributed to or caused the condition; and
(3) Make written recommendations to the appropriate legislative body or appropriate official overseeing the internal control system addressing:
(a) The method, of correcting the condition; and
(b) The necessary internal control policies and internal control procedures that must be modified to prevent a recurrence of the condition.
(D) Pursuant to I.C. 5-11-1-27(l), if any Decatur County employee knows or suspects that other county employees are engaged in fiscal misconduct, it is his/her responsibility to immediately notify their Supervisor or the Board of Commissioners or if the Supervisor or a Commissioner is involved the County Attorney, then the County Auditor and Prosecuting Attorney are to be contacted.
(E) The Decatur County Ethics Policy/Internal Control/ Materiality Declaration regarding establishment of a policy on materiality and a process for reporting material items, which was reviewed and approved by the Decatur County Board of Commissioners and the Decatur County Council is hereby adopted.
(Ord. 2016-6, passed 6-20-2016)
Statutory Reference:
Materiality Policy, see I.C. 5-11-1-10, 5-11-1-21, and 5-11-1-27.