§ 36.04  MATERIALITY VARIANCES BECAUSE OF LOSSES, SHORTAGES AND THEFTS.
   (A)   Purpose. This section is intended to comply with I.C. 5-11-1-10, 5-11-1-21, and 5- 11-1-27 and State Examiner Directive 2015-6.
   (B)   Materiality threshold. The materiality threshold for the city shall be $100. If the erroneous or irregular variance, lost, shortage or theft is not cash or cash-equivalent, the value of the item at the time of the variance, loss, shortage or theft shall be used to determine whether the materiality threshold has been met.
   (C)   Reporting. All erroneous or irregular variances, losses, shortages of thefts of $100 or more shall be reported immediately to the State Board of Accounts. In addition, all erroneous or irregular variances, losses, shortages or thefts, which occur more than one time in a month and which in the aggregate total 12 or more shall be reported immediately to the State Board of Accounts.
   (D)   Knowledge of misappropriation. A public officer who has knowledge of or reasonable cause to believe that there has been a misappropriation of public funds or assets of the public office shall immediately send written notice of the misappropriation to the Indiana State Board of Accounts and the Grant County, Indiana prosecuting attorney.
   (E)   Maintenance of documentation. The city shall maintain records and documentation concerning erroneous or irregular variances, losses, shortages or thefts in accordance with generally accepted accounting principles and the internal control standards provided by the Indiana State Board of Accounts.
   (F)   Resolution of incidents not meeting the materiality threshold. The city shall investigate all erroneous or irregular variances, losses, shortages of theft, regardless of whether they meet the materiality threshold established by this section. Upon conclusion of each investigation, the city shall:
      (1)   Implement procedures designed to prevent the recurrence of such incidents; and
      (2)   Take appropriate disciplinary action against the employee responsible for the incident.
(Ord. 3-2016, passed 5-17-2016)