(A) The city hereby adopts the internal control policy attached to Ord. 2016-12 as Exhibit A, and is hereby incorporated by reference.
(B) The Clerk-Treasurer is directed to ensure that all personnel receive training concerning the internal control procedures adopted and approved herein prior to December 31, 2016.
(C) Materiality threshold.
(1) The Common Council of the city recognizes that losses, shortages, and theft of city funds and other assets may occur from time to time. State law requires the city to report to the Indiana State Board of accounts all erroneous or irregular material losses, shortages or theft of city or property. The Indiana State Board of Accounts requires political subdivisions to determine their own material threshold for the purposes of reporting the loss, shortage, or theft to the Indiana State Board of Accounts as required by state law.
(2) The threshold for material losses, shortages, or theft for the city, including its utilities and departments, which must be reported to the Indiana State Board of Accounts by the Clerk-Treasurer or the Clerk-Treasurer’s designee, is as follows:
(a) A loss, shortage, or theft of cash from any city fund, including its utilities and departments, is an amount over $5,000.
(b) Other assets loss, shortage or theft. A loss, shortage, or theft of a city asset, including its utilities and departments, other than cash exceeding a value of $5,000.
(D) Whenever a loss shortage or theft of city funds or property occurs, no matter the amount or value, or the requirement to report such to the Indiana State Board of Accounts, the administration should investigate any and all losses, shortages, or thefts of city funds or assets. The investigation and the resolution of the investigation must be documented by the official who conducts the investigation. Such documentation should be maintained in the Clerk-Treasurer’s. State law requires a public employees who have actual knowledge of, or reasonable cause to believe, a misappropriation of city funds has occurred to report such misappropriation to the Indiana State Board of Accounts and the county prosecuting attorney.
(Ord. 2016-12, passed 6-9-16)