HomeMy Public PortalAbout2016-04 - MATERIALITY THRESHOLD ORDINANCE 2016 -4
AN ORDINANCE ESTABLISHING A MATERIALITY THRESHOLD
WHEREAS, Indiana Code 5- 11 -1 -27 requires all Indiana political subdivisions to adopt a
materiality threshold for reporting irregular variances, losses, shortages and thefts of funds; and
WHEREAS, the Indiana State Board of Accounts has issued State Examiner Diretive 2015 -6
in furtherance of I.C. 5- 11 -1 -27;
WHEREAS, the Clerk- Treasurer has reviewed and recommends the adoption of the proposed
materiality thresholds described herein.
NOW THEREFORE be it ordained by the Common Council of the City of Greencastle that
it hereby creates the following materiality thresholds for the City of Greencastle:
1. Materiality Thresholds
a. General. The materiality threshold for the City shall be Five Hundred Dollars
($500.00) unless stated otherwise herein. If the erroneous or irregular variance, loss,
shortage or theft is not cash or a cash - equivalent, the value of the item at the time of the
variance, loss, shortage or theft shall be used to determine whether the materiality
threshold has been met.
b. Recurring Variances. The materiality threshold is One Hundred Dollars ($100.00) for
all erroneous or irregular variances, losses, shortages or thefts which occur more than two
times in a calendar month.
All erroneous or irregular variances, losses, shortages or thefts meeting the materiality
thresholds above shall be reported immediately by the Clerk - Treasurer to the Indiana State
Board of Accounts.
2. Resolution of Incidents Not Meeting the Materiality Threshold. The City shall investigate all
erroneous or irregular variances, losses, shortages or thefts, regardless of whether they meet the
materiality threshold established by the policy. Upon conclusion of each such investigation, the
City shall:
a. implement internal procedures designed to prevent the recurrence of such
incidents; and
b. take appropriate disciplinary and legal action against the employee responsible
for the incident, if warranted.
3. Misappropriation. A public officer or employee who has reasonable cause to believe that
there has been a misappropriation of public funds or assets shall immediately send written notice
of the misappropriation to the Indiana State Board of Accounts and the Putnam County
Prosecutor.
4. Maintenance of Documentation. The City shall maintain records and documentation
concerning erroneous or irregular variances, losses, shortages, or thefts in accordance with
generally accepted accounting principles, the internal control standards provided by the Indiana
State Board of Accounts and the State of Indiana Records Retention Schedule.
This Ordinance shall have full force and effect upon passage of the Greencastle Common
Council and its approval by the Mayor.
PASSED AND ADOPTED by the Common Council of the City of Greencastle, Indiana this
. ill* day of T, ,2016.
i 91
Adam ohen Tyler
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ill �4, d er e .h.,
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Mark N. Hammer IF Murray / IF
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' teve Fields Gary Lemon
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.cie Langdon
Approved and signed by me this I `f day of ty s.. , 2016, at «! 30
o'clock r .m. /,
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lA William A. Dory, Jr., Mayor
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ATTEST:
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yne .4 unbar, Cler - Treasurer .