(A) Principle 16: Management establishes and operates monitoring activities to monitor the internal control system and evaluate the results.
(1) Town administration monitors and evaluates compliance with internal control policies via multiple vectors. Separation of duties, redundancy polices, layered approval systems, monthly reports, allow management to both review and evaluate control systems.
(2) The Town Clerk-Treasurer shall implement a system of monitoring that includes:
(a) Periodic checks to determine if controls are in place and working effectively;
(b) Reviewing control activities to determine if the actual activities are in compliance with established procedures;
(c) Documenting deficiencies in the internal control processes and remediating them quickly.
(3) Monitoring activities will be documented by signatures, initials, or other appropriate methods.
(B) Principle 17: Management remediates identified internal control deficiencies on a timely basis. Breaches of internal controls are subject to significant levels of internal scrutiny. If informed of a material breach of internal controls, the Town Clerk-Treasurer and Town Council actively investigate and address said breach and adjust policies and procedures to prevent such breaches in the future. Once breaches are identified and investigated, a formal or informal corrective action plan will be developed.
(Ord. 7-2016, passed 6-27-2016)