(A) Management establishes an organizational structure, assigns responsibility and delegates authority to achieve the entity’s objectives.
(B) Individuals with delegated approval authority, such as elected officials and department heads, are responsible for establishing, maintaining and supporting a system of internal controls within their areas of responsibility and for creating a control environment which encourages compliance with city policies and procedures.
(C) Adequate supervision is necessary to monitor that internal controls are operating as intended and to help ensure the reliability of accounting and operational controls by pointing out errors, omissions, exceptions and inconsistencies in procedures. Staff in leadership roles are responsible for the application of this policy and the design, development, implementation and maintenance of systems of internal controls focusing on the effectiveness of operations and the safeguarding of assets within their respective areas of responsibility. All levels of management and supervision are responsible for strengthening internal controls when weaknesses are detected. Department managers should periodically review departmental procedures to ensure that the general principles of internal control are being followed.
(D) The Finance Department has the primary responsibility for internal control over financial reporting and compliance with applicable laws, rules and regulations. The Controller is the city’s chief source for information and assistance to staff and department heads on this topic and will make resources available to assist in administering this policy.
(E) The Human Resources Department is responsible for internal controls over employee recruitment, hiring, separation, promotion, job classification, employee rights and salary administration. The Benefits Coordinator and Corporation Counsel are the city’s sources for information and assistance on this topic and will make resources available to assist in administering this policy.
(F) All levels of internal control are subject to examination by external auditors, who are required to report on the adequacy of internal controls over finance and compliance.
(G) Department heads are responsible for prompt corrective action on all internal control findings and recommendations made by internal and external auditors. The audit process is completed only after department heads receive the audit results and take action to correct internal control weaknesses, improve systems or demonstrate that management action is not warranted. Department heads have the responsibility to ensure that those who report to them have adequate knowledge, skills and abilities to function within and contribute to an effective internal control environment. This includes providing access to appropriate training on topics relevant to their job responsibilities.
(Ord. 2016-04, passed 7-5-2016)