(A) The county finds that its mission as related to an internal control system is as follows:
(1) Provision of a democratic governmental structure at the grassroots level;
(2) Provision of services as determined through the political process including, but not limited to, the recycling services that the county provides;
(3) Promotion of government efficiency, accountability, reliability, and transparency; and
(4) Promotion of safeguards to reduce the risk of loss due to fraud, waste, abuse, mismanagement, or errors.
(B) The county finds that its interrelated, and often overlapping, objectives as related to an internal control system are as follows:
(1) Operations objectives, which involve the ways governmental services are performed, and the performance of those providing governmental services including by way of example budgeting, purchasing, permitting, cash management, and planning, among others;
(2) Reporting objectives, which involve the filing of financial and non-financial information to those inside the government and those outside of the government, including, by way of example, filing the annual report, audit, and examination cooperation, filing uniform conflict of interest forms, and the other filings with any governmental agency or official or information required to be kept such as an OSHA log and responding to a public records request amount others; and
(3) Compliance objectives involve the adherence to law and regulations, including, by way of example, following guidance documents, such as the State Board of Accounts’ manuals, bulletins, directives, and the Department of Local Government Finance’s forms and directions, and including other outside-of-government trainings and documents, such as IACT, among others.
(C) The county adopts and directs the minimum level of internal control standards and internal control procedures for an internal control system that includes the following five standards to promote government accountability and transparency, as described in the Uniform Internal Control Standards for Indiana Political Subdivisions guidance document from the State Board of Accounts, dated September 2015, and as thereafter modified:
(1) Control environment;
(2) Risk assessment;
(3) Control activities;
(4) Information and communication; and
(5) Monitoring.
(D) The county adopts and directs the following principals in explanation of the pertinent standards above be followed as all levels of county government:
(1) Control environment:
(a) The oversight body and management demonstrate a commitment to integrity and ethical values;
(b) The oversight body oversees the county’s internal control system;
(c) Management establishes an organizational structure, assigns responsibility, and delegates authority to achieve the county objectives;
(d) Management demonstrates a commitment to attract, develop, and retain competent individuals; and
(e) Management evaluates per- formance and holds individuals accountable for its internal control responsibilities.
(2) Risk assessment:
(a) Management defines objectives clearly to enable the identification of risks and defines risk tolerances;
(b) Management identifies, analyzes, and responds to risk related to achieving the defined objectives;
(c) Management considers the potential for fraud when identifying, analyzing, and responding to risks; and
(d) Management identifies, analyzes, and responds to significant changes that could impact the internal control system.
(3) Control activities:
(a) Management designs control activities to achieve objectives and respond to risks;
(b) Management designs the county information system and related control activities to achieve objectives and respond to risks; and
(c) Management implements control activities through policies.
(4) Information and communication:
(a) Management uses quality information to achieve the county’s objectives;
(b) Management internally communicates the necessary quality information to achieve the county’s objectives; and
(c) Management externally communicates the necessary quality information to achieve the county’s objectives.
(5) Monitoring:
(a) Management establishes and operates monitoring activities to monitor the internal control system and evaluate the results; and
(b) Management remediates identified internal control deficiencies on a timely basis.
(E) The county adopts the internal control standards as mentioned above so as to establish an effective internal control system for the county through its design, implementation, and operation.
(F) The county directs the above standards be used to design, implement, operate, and modify current operations; reporting and compliance objectives that will safeguard the assets of the county; promote reliability, accountability, and transparency of financial and non-financial information; and to assure compliance with laws and regulations for each office, department, and personnel (as defined below) for an effective and reasonable internal control system of the county.
(G) The county authorizes the Board of Commissioners to review the current internal control system of the county and adopt a policy for the future internal control system to be effective after June 30, 2016, and perform an annual review, or more if determined necessary for compliance with this section.
(H) The personnel, whether an official or employee, of the county, whose official duties include receiving, processing, deposition, disbursing, or otherwise having access to funds that belong to the federal government, state government, a political subdivision, or another governmental entity, shall comply with these minimum internal control standards and procedures and any other policy regarding standards and procedures determined necessary by the county, now, and as modified in the future.
(I) The personnel of the county whose official duties include receiving, processing, deposition, disbursing, or otherwise having access to funds that belong to the federal government, state government, a political subdivision, or another governmental entity shall be trained at least once during a calendar year and annually thereafter, unless on leave status, on minimum internal control standards and procedures, and any other standards and procedures determined necessary by the county, and shall cooperate with the County Fiscal Officer, or his or her designee, so that the Fiscal Officer can timely certify to the State Board of Accounts that the training was received annually by the personnel, as provided by law.
(J) The county authorized the Board of Commissioners to determine the position and person who are the personnel referred to in divisions (H) and (I) above and notify such personnel.
(K) (1) The Board of Commissioners, or its designee, will perform all the internal control system activities/duties.
(2) The Board of Commissioners constitutes as management.
(L) All elected and appointed officials and employees of the county are hereby directed to abide by, and to cooperate fully in, the implementation of the internal control system of the county.
(M) An employee who fails to abide by, or cooperate with, the implementation, compliance, and certifications connected with the internal control system commits a violation of such, and may result in the discipline, including termination, of the employee.
(N) An elected or appointed official of the county who fails to abide by, or cooperate with, the implementation and the mandated certifications of the internal control system may be subject to any action allowed by law.
(O) This section may be implemented by any, and all, of the following actions, or such others as authorized by the Board of Commissioners:
(1) Posting a copy of this section in its entirety in at least one of the locations in the county where it posts employer posters or notices to its employees;
(2) Providing a copy of this section to its employees and elected and appointed officials;
(3) Providing or posting a notice of the adoption of the section; or
(4) Any such other action, or actions, that would communicate the policies established by this section to its employees and elected and appointed officials.
(Ord. 2016-14, passed 9-20-2016)