(A) County government.
(1) 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 Subdivisions manual are hereby adopted by the county, and that county personnel receive training concerning the internal control standards and procedures hereby adopted.
(2) The county establishes the following materiality policy under I.C. 5-11-1-10, 5-11-1-21, and 5-11-1-27.
(a) MATERIALITY in the county government is defined as $5,000 per occurrence. That is, if one occurrence of a loss or shortage, or other irregularity, is equal to, or greater than, $5,000 it must be reported to the State Board of Accounts.
(b) 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 misappropriated or stolen, or used in a manner not authorized by county officials, and the value of those supplies, equipment, or fixed assets are approximately $5,000, that misuse, or series of misuse, should be reported. That is not to say that if a loss or shortage is less than $5,000 it should be ignored.
(c) 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.
(3) 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:
(a) Determine the amount of funds involved and report the amount to the appropriate government and law enforcement officials;
(b) Determine the internal control weakness that contributed to, or caused, the condition; and
(c) Make written recommendations to the appropriate legislative body or appropriate official overseeing the internal control system addressing:
1. The method of correcting the condition; and
2. The necessary internal control policies and internal control procedures that must be modified to prevent a recurrence of the condition.
(4) Pursuant to I.C. 5-11-1-27(1), if any county employee knows, or suspects, that other county employees are engaged in fiscal misconduct, it is his or her responsibility to immediately notify his or her supervisor or the Board of Commissioners, or if the supervisor or a Board member is involved the County Attorney, or if the employee has concerns about informing the County Attorney, then the County Auditor and Prosecuting Attorney are to be contacted.
(B) Regional Sewer District.
(1) 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 Subdivisions manual are hereby adopted by the County Regional Sewer Board, and that the Regional Sewer personnel receive training concerning the internal control standards and procedures hereby adopted.
(2) The County Regional Sewer Board establishes the following materiality policy under I.C. 5-11-1-10, 5-11-1-21, and 5-11-1-27.
(a) MATERIALITY in the County Regional Sewer District, is defined as $5,000 per occurrence. That is, if one occurrence of a loss or shortage, or other irregularity, is equal to, or greater than, $5,000 it must be reported to the State Board of Accounts.
(b) 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 District are suspected of being misappropriated or stolen, or used in a manner not authorized by the Regional Sewer Board, and the value of those supplies, equipment, or fixed assets are approximately $5,000, that misuse, or series of misuse, should be reported. That is not to say that if a loss or shortage is less than $5,000 it should be ignored.
(c) If there is a series of events within the same office or department that appears to be a structuring event to defraud, or misappropriate, District funds or property, that event, or series of events, should be reported.
(3) 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:
(a) Determine the amount of funds involved, and report the amount to the appropriate government and law enforcement officials;
(b) Determine the internal control weakness that contributed to, or caused, the condition; and
(c) Make written recommendations to the appropriate legislative body or appropriate official overseeing the internal control system addressing:
1. The method of correcting the condition; and
2. The necessary internal control policies and internal control procedures that must be modified to prevent a recurrence of the condition.
(4) Pursuant to I.C. 5-11-1-27(1), if any Regional Sewer District employee knows, or suspects, that other District employees are engaged in fiscal misconduct, it is his or her responsibility to immediately notify his or her supervisor or the Regional Sewer Board, or the Board of Commissioners, or if the supervisor or a Regional Sewer Board or Board member is involved, the County Attorney, or if the employee has concerns about informing the County Attorney, then the County Auditor and Prosecuting Attorney are to be contacted.
(Ord. 2016-36, passed 11-22-2016; Ord. 2019-46, passed 12-10-2019)