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(A) Materiality Threshold.
(1) Materiality defined. As used in this section, "material" shall mean a significant or consequential amount, as it pertains to the town, taking into account the town's size, demographics, calculation of monthly receivables, as well as the form or method of payment. The Town Council establishes that such significant or consequential amounts, warranting action under division (B) shall be as follows:
(a) Cash, checks and other bearer instruments. It will be the policy of the Town Council that any erroneous or irregular variances, losses, shortages, or thefts of cash in excess of $200, except for inadvertent clerical errors that are identified timely and promptly with no loss to the town, shall be deemed material, and reported in accordance with division (B).
(b) Credit card and Other EFT and non-cash items. It will be the policy of the Town Council that any erroneous or irregular variances, losses, shortages, or thefts of credit card, EFT, or other non-cash items, including town property, in excess of $500, estimated market value, except for those resulting from inadvertent clerical errors or misplacements that are identified timely, and promptly corrected with no loss to the town, and except for losses from genuine accidents, shall be deemed material and reported in accordance with division (B).
(B) Material variances.
(1) Reporting mandate. All erroneous or irregular material variances, losses, shortages, or thefts of political subdivision funds or property shall be reported immediately to the State Board of Accounts. As per I.C. 5-1 l-l-27(j) the State Board of Accounts shall take appropriate investigative and/or enforcement action, as it deems necessary, in order to rectify said material variances, losses, shortages, or thefts.
(2) Public officer duties. A public officer, as that term is defined by I.C. 5-11-1-16(d), who has actual knowledge of or reasonable cause to believe that there has been a misappropriation of public funds or assets of the public office, shall immediately send written notice of the misappropriation to the State Board of Accounts and the prosecuting attorney serving in Pulaski County. These misappropriations include:
(a) Information obtained as a result of a police report;
(b) An internal audit finding; or
(c) Another source indicating that a misappropriation has occurred;
(C) Oversight Directive.
(1) The Town Council hereby endorses the Clerk-Treasurer Directive, attached as Appendix, regarding a policy on materiality and a process for reporting material items.
(2) Compliance. The Town Council calls upon all town officials, employees, and agents to enforce and comply with this policy on materiality and adhere to the appropriate process for reporting material variances, losses, shortages, or thefts, and to report noteworthy items to the Town Clerk-Treasurer or the Town Council.
(3) Oversight Committee. The Town Council directs its Oversight Committee to monitor, as it deems necessary, compliance with the policy on materiality and process of reporting material items and report noteworthy items to the full Town Council.
(4) Changes. The Town Council asks the Clerk-Treasurer to advise the Town Council of any changes in the policy on materiality and process for reporting material items, as directed in the corresponding Clerk-Treasurer's Directive.
(Ord. 6 of 2016, passed 5-9-2016)