Internal Controls and Materiality Standards

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STARKE COUNTY COMMISSIONERS ORDINANCE 2020-011

ADOPTION OF STANDARDS FOR INTERNAL

CONTROLS AND MATERIALITY STANDARDS

AS DEVELOPED BY THE INDIANA STATE BOARD OF ACCOUNTS

WHEREAS, Ind. Code S 5-11-1-27 requires each political subdivision to maintain a system of internal controls to promote transparency and accountability; and,

WHEREAS, in September 2015, pursuant to l.c. S 5-11-1-27 (e), the Indiana State Board of Accounts (the “ISBOA”) developed and published the uniform Internal Control Standards for Indiana Political Subdivisions to assist public sector managers in complying with the internal control requirements; and,

WHEREAS, on May 2, 2016 pursuant to Starke County Commissioners Resolution 2016-0119, the Board of Commissioners of Starke County, Indiana (the “Commissioners”) created the Internal Controls Committee (the “Committee”), populated the Committee and delegated to the Committee their authority regarding internal controls and related matters; and,

WHEREAS, pursuant to l.c. S 5-11-1-27(e), after June 30, 2016 all Indiana political subdivisions must develop local policies regarding internal control and ensure that staff received training on internal control; and,

WHEREAS, the ISBOA’s uniform Internal Control Standards for Indiana Political Subdivisions establishes the acceptable minimum level of internal control standards; and,

WHEREAS, the Commissioners find that the County’s policy regarding internal controls should include and incorporate by reference the internal control standards as set forth by the ISBOA’s uniform internal Control Standards for Indiana Political Subdivisions supplemented as necessary and appropriate by adopted county procedures; and,

WHEREAS, pursuant to l.c. S 5-11-1-276) each political subdivision is authorized to establish its own policy on materiality; and,

NOW THEREFORE, IT IS HEREBY ORDAINED, that the Commissioners, on behalf of Starke County, Indiana hereby adopt as policy the internal control standards as set forth in the ISBOA’S uniform Internal Control Standards for Indiana Political Subdivisions (dated September, 2015, and as amended from time to time); and,

IT IS FURTHER HEREBY ORDAINED, that the Commissioners, on behalf of Starke County, Indiana hereby direct the Committee to consider and report on supplements the state’s acceptable minimum level of control standards to be incorporated into the Starke County Internal Control Procedures (SCICP). Pending report of the Committee, the Commissioners hereby adopt the Interim SCICP as follows, to wit:

Interim SCICP. Internal Control Standards. Starke County adopts as policy the internal standards as set forth by the Indiana State Board of Accounts’ uniform Internal Control Standards for Indiana Political Subdivisions. All officers, elected officials and employees are required to comply with these policies. Starke County department managers may adopt their own internal control procedures to augment, but not replace or override, the county standards. Employees who fail to comply with these policies are subject to discipline, including but not limited to termination of their employment

IT IS FURTHER HEREBY ORDAINED, that each officer and employee of Starke County whose official duties include receiving, processing, depositing, disbursing, or otherwise having access to funds that are the property of the United State government, government of the State of Indiana, any political subdivision, or any other governmental entity, shall undergo and complete training in the standards and procedures developed by the Indiana State Board of Accounts pursuant to l.c. S 5-11-1-27(e) and hereby adopted by Starke County.

IT IS FURTHER HEREBY ORDAINED, that a loss, shortage, theft, or conversion of funds, or any other asset or property owned or in the possession of Starke County of a value exceeding FIVE HUNDRED DOLLARS ($500.00) shall be deemed material for the purposes of

l.c. S 5-11-1-27(j) and shall be promptly reported to the Indiana State Board of Accounts.

ALL OF WHICH IS HEREBY ORDAINED this 16 day of March 2020 by the following vote:

COMMISSIONERS OF STARKE COUNTY