(A) Adoption. The town adopted as its policy the minimum requirements of IC 5-11-1-27, and authorizes the development and implementation of specific policies to effectuate those requirements.
(B) Objectives. The town finds that its objectives as related to an internal control system are as follows:
(1) Operations objectives, which are designed to analyze operational and performance goals, along with the effectiveness and efficiencies of the way governmental services are performed and the safeguarding of assets;
(2) Reporting objectives, which are designed to consider the dissemination of financial and non-financial information, internally and externally; and
(3) Compliance objectives, which are designed to assure adherence to applicable laws and regulations.
(C) Minimum requirements. The minimum requirements of IC 5-11-1-27 adopted by the town shall specifically include the five components as described in the Uniform Internal Control Standards for Indiana Political Subdivision guidance document from the State Board of Accounts dated September 2015, and any subsequent version thereof, which are the following: (1) control environment; (2) risk assessment; (3) control activities; (4) information and communication; and (5) monitoring.;
(D) Principles adopted. The town specifically adopts the following principles to effectuate the five components above:
(1) Control environment.
(a) The oversight body and management demonstrate a commitment to integrity and ethical values;
(b) The oversight body oversees the town’s internal control system;
(c) Management establishes an organizational structure, assigns responsibility, and delegates authority to achieve the town’s objectives;
(d) Management demonstrates a commitment to attract, develop, and retain competent individuals; and
(e) Management evaluates performance and holds individuals accountable for their internal control responsibilities.
(2) Risk assessment.
(a) Management defines objectives clearly to enable the identification of risks and defines risk tolerances;
(b) Management identifies, analyzes, and responds to risk related to achieving the defined objectives;
(c) Management considers the potential for fraud when identifying, analyzing, and responding to risks; and
(d) Management identifies, analyzes, and responds to significant changes that, could impact the internal control system.
(3) Control activities.
(a) Management designs control activities to achieve objectives and respond to risks;
(b) Management designs the town’s information system and related control activities to achieve objectives and respond to risks; and
(c) Management implements control activities through policies.
(4) Information and communication.
(a) Management uses quality information to achieve the town’s objectives;
(b) Management internally communicates the necessary quality information to achieve the town’s objectives; and
(c) Management externally communicates the necessary quality information to achieve the town’s objectives.
(5) Monitoring activities.
(a) Management establishes and operates monitoring activities to monitor the internal control system and evaluate the results; and
(b) Management remediates identified internal control deficiencies on a timely basis.
(E) Use of principles. The Town Council directs that the above principles be used to design, implement, operate, and modify current operations, reporting, and compliance objectives, where necessary, to establish and ensure that the minimum internal control standards and procedures are met or exceeded.
(F) Review to ensure compliance. The Town Council authorizes the Town Council President and Clerk-Treasurer to review the current internal control system of the town and to implement a policy that ensures that the minimum internal control standards and procedures are met or exceeded in compliance with IC 5-11-1-27.
(G) Affected personnel; training. The personnel whose official duties include receiving, processing, depositing, disbursing, or otherwise having access to funds that belong to the federal government, state government, a political subdivision, or another governmental entity shall comply with the minimum internal control standards and procedures and any other policy implemented to effectuate or surpass those standards, and that they shall be trained at least once during a calendar year and annually thereafter, unless on leave status, on the adopted and implemented control standards and procedures.
(H) Certification by fiscal officer. The fiscal officer of the town shall certify in writing that the minimum internal control standards and procedures have been adopted by the town and that the personnel, who are not otherwise on leave status, have received training, which shall be filed annually with the State Board of Accounts at the same time as the annual financial report required by IC 5-11-1-4(a).
(I) Determination of affected personnel. The town authorizes the Town Council President and Clerk-Treasurer to determine which personnel must receive the required training and to notify such personnel.
(J) Cooperation in implementation. All elected and appointed officials of the town are hereby directed to abide by and to cooperate fully in the implementation and modification of the internal control system.
(Ord. 2016-4, passed 6-13-16)