(A) The city hereby adopts as policy the internal control standards as set forth by the Indiana State Board of Accounts Uniform Internal Control Standards for Indiana Political Subdivisions Manual as expressly written and published by the Indiana State Board of Accounts in September 2015, as amended from time to time.
(B) In order to implement the standards outlined in division (A), there is established an Internal Controls Standards Oversight Committee. The members of the committee are determined by Common Council and may be modified from time to time as deemed appropriate.
(C) All city management and personnel will receive appropriate training on the internal controls standards and procedures. PERSONNEL is defined as an officer or employee whose official duties include receiving, processing, depositing, disbursing, or otherwise having access to funds and/or property belonging to the Federal government, state government, a political subdivision, or another governmental entity. As required by statute, the Fiscal Officer of the city (Clerk-Treasurer) will file annual certification of training with the Indiana State Board of Accounts.
(D) The Clerk-Treasurer’s Office, in coordination with the Internal Controls Oversight Committee, will develop, maintain and train personnel on internal controls standards and policies and all new personnel shall receive training timely. All city officers, elected officials and employees are required to comply with the policy. The policy will be integrated into the Employee Handbook. Employees who fail to comply with this policy are subject to disciplinary action, up to but not limited to termination of their employment.
(E) As required by statute, all erroneous or irregular variances, losses, shortages, or thefts of local government funds or property shall be reported immediately to the State Board of Accounts. The Common Council will seek a recommendation from the Clerk-Treasurer as to an appropriate materiality threshold (dollar amount of variance, loss, shortage or theft that requires reporting) and may approve or modify the threshold amount as deemed appropriate. The Clerk-Treasurer will communicate the materiality threshold in a detailed policy that shall distinguish between cash and other types of assets, maintenance of documentation and resolution of incidents that do not meet the materiality threshold.
(F) The Common Council of the city hereby endorses the Clerk-Treasurer’s directive, attached as Appendix “A” to Ord. 10-2016 regarding a policy on materiality and a process for reporting material items.
(G) The Common Council of the city calls upon the Clerk-Treasurer, city officials, employees, and agents to enforce and comply with the policy on materiality and process for reporting material items and to report noteworthy items to the State Board of Accounts.
(H) The Common Council of the city directs the Clerk-Treasurer to monitor, as necessary, compliance with the policy on materiality and process for reporting material items and report noteworthy items to the Common Council of the city.
(I) The city asks the Clerk-Treasurer to advise the Common Council of any changes in the policy on materiality and process for reporting material items.
(Ord. 10-2016, passed 6-6-16)