ORDINANCE NO. 2016-BC-O-04 AN ORDINANCE ADOPTING POLICY OF MADISON COUNTY GOVERNMENT ESTABLISHING MATERIALITY THRESHOLD FOR REPORTING IRREGULAR VARIANCES, LOSSES, SHORTAGES, AND THEFT APPLICABLE TO MADISON COUNTY FUNDS AND PROPERTY WHEREAS, Indiana Code Section 5-11-1-27(j) obligates each political subdivision in the State of Indiana by and through its legislative body, to include Madison County Government, to develop a materiality threshold for reporting to the Indiana State Board of Accounts all erroneous or irregular material variances, losses, shortages, or thefts of its funds or property; WHEREAS, the State Board of Accounts of the State of Indiana has issued "State Examiner Directive 2015-6," dated November 18, 2015, to all political subdivisions in the State of Indiana; WHEREAS, in compliance with State Examiner Directive 2015-6, and consistent with the discretion, authority, and responsibilities imposed upon the Board of Commissioners of the County of Madison ("Commissioners") by I.C. 5-11-1-27(j), the Commissioners herewith adopt the following policy and standards on materiality, reporting requirements, and procedures for dealing with erroneous or irregular material variances, losses, shortages, or thefts of Madison County funds or property; NOW, THEREFORE, BE IT ESTABLISHED, ORDERED, RESOLVED, AND ORDAINED, by the Board of Commissioners of Madison County, Indiana as follows: 1. Materiality Thresholds. Any irregular variances, losses, shortages, and thefts of Madison County funds or property shall be deemed material, for purposes of this Ordinance, and for purposes of the State Examiner Directive 2015-06 (hereafter generally labeled "Variances"), based upon the following criteria: A. A singular Variance involving non-cash or non-cash equivalent assets of Madison County exceeding One Hundred Dollars ($100) in value. B. A recurring, related Variance relative to non-cash or non-cash equivalent assets of Madison County, involving two or more related or similar circumstances, occurring within a thirty (30) day period or less, exceeding One Hundred Dollars ($100.00) in value. C. A singular Variance involving cash or cash equivalent funds of Madison County exceeding One Hundred Dollars ($100) in value. D. Two (2) more Variances involving cash or cash equivalent funds of Madison County in a thirty (30) day period exceeding One Hundred Dollars ($100) in value. 2. Designation of Position to Whom Variances Shall be Reported. An elected Madison County officials, and all department heads established under the policies and standards of the Commissioners for Madison County Government, shall report a Variance, meeting the criteria of paragraph 1 above, to the Madison County Administrator. The reporting ("Report") shall be in writing, shall be delivered within seven (7) days of the determination of the Variance, and shall provide to the County Administrator the requisite knowledge and information by which the County Administrator may evaluate the Variance, and posture the County Administrator to follow the steps and procedures upon receiving of a Report as contemplated by paragraph 3 below. 3. Responsibilities of County Administrator with Regard to Variances as Herein Defined. Upon the receipt of a Report consistent with paragraph 2 above, with regard to Variances defined at paragraph 1 above, the County Administrator shall proceed as follows: A. Log in each Report into a spreadsheet that is permanently maintained by Madison County Government; B. Confirm the dollar amount/value of the Variance referenced in the Report; C. Evaluate the Report against the Variance dollar thresholds established at paragraph 1 above, and send a letter to the State Board of Accounts when the Report, after evaluation, exceeds the applicable threshold of materiality; D. Investigate the cause of the Variance giving rise to the Report; E. Implement corrective actions or internal control procedures to correct the cause( s) of the Variance set forth within the Report; and F. Maintain copies of relevant documentation, resolution of incidents, and any Report to the State Board of Accounts by the County Administrator, in a centralized data folder. 4. Acknowledgement of Indiana Code Section 5-11-1-21(1). Indiana Code Section 5-11-1-27(1) requires that a public officer. to include a public officer of Madison County Government, who has actual knowledge of or reasonable cause to believe that there has been a misappropriation of public funds or assets of an applicable public office, including: (i) information obtained as a result of a police report; (ii) an internal audit finding; or (iii) another source indicating that a misappropriation has occurred; shall immediately send written notice of the misappropriation to the State Board of Accounts and the Prosecuting Attorney for Madison County Government. The standards applicable to I.C. 5-11-1-27(1) are not altered or diminished by the standards within this Policy, as it is acknowledged herein that there may be a difference in circumstances, and a difference in severity of a matter requiring a Report under this Policy, and a misappropriation contemplated by I.C. 5-11-1-21(1). 5. Effective Date. This Ordinance, and the Policies herein adopted, shall become effective as of June 21, 2016. This Ordinance, and the Policies herein adopted, shall apply to all elected officials and department heads of Madison County Government. PASSED AND ADOPTED by the Board of Commissioners of Madison County, Indiana, on this 21st day of June, 2016. MADISON COUNTY BOARD OF COMMISSIONERS JOHN RICHWINE JEFF HARDIN STEFFANIE OWEN ATTEST: Jane Lyons, Madison County Auditor This document prepared by: Jeffrey K. Graham GRAHAM, REGNIER, FARRER & WILSON, P.C. 1601 South Anderson Street, P. O. Box 494 Elwood, Indiana 46036 HB-507 June 27 hspaxlp
↧