The Newburgh Town Council establishes the following materiality policy in accordance with I.C. 5-11-1-10, I.C. 5-11-1-21 and I.C. 5-11-1-27: Materiality is hereby defined as $500 per occurrence. That is, if one occurrence of a loss or shortage or other irregularity is equal or greater than $500, it must be reported to the State Board of Accounts. This 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 town are suspected of being misappropriated or stolen or used in a manner not authorized by town officials and the value of those supplies, equipment or fixed assets are approximately $500, that misuse or series of misuse should be reported. That is not to say that if a loss or shortage is less than $500 it should be ignored. If there is a series of events, within the same office or department that appears to be a structuring event to defraud or misappropriate town funds or property, that event or series of events should be reported to the State Board of Accounts.
(Ord. 2016-13, passed 6-22-2016)