(A) The materiality threshold for the town shall be $100. If the erroneous or irregular variance, loss, shortage and/or theft is not cash or a cash-equivalent, the value of the item at the time of the variance, loss, shortage and/or theft shall be used to determine whether the materiality threshold has been met.
(B) All erroneous or irregular variances, losses and shortages of $100 or more shall be reported immediately to the State Board of Accounts (“SBOA”). In addition, all erroneous or irregular variances, losses and shortages which occur more than one time in a month and which in the aggregate total $100 or more shall be reported immediately to the SBOA.
(C) 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, regardless of the amount, shall immediately send written notice of the misappropriation to the SBOA and the County Prosecuting Attorney.
(D) The town shall maintain records and documentation concerning erroneous or irregular variances, losses and shortages in accordance with generally-accepted accounting principles and the internal control standards provided by the SBOA.
(E) The town shall investigate all erroneous or irregular variances, losses, shortages and/or thefts, regardless of whether they meet the materiality threshold established by this policy. Upon conclusion of each such investigation, the town shall:
(1) Implement procedures designed to prevent the recurrence of such incidents; and
(2) Take appropriate disciplinary action as necessary against the employee responsible for the incident.
(Ord. 2016-6-2, passed 6-7-2016)