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HomeMy WebLinkAboutD-2286-16 Reporting Requirements for State Board of AccountsSPONSOR(S): Councilor Finkam ORDINANCE NO. D-2286-16 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, ESTABLISHING A POLICY ON MATERIALITY AND PROCESS FOR REPORTING MATERIAL VARIANCES Synopsis: Ordinance enacts a policy and dollar amount threshold for reporting material variances, losses, shortages or thefts of funds or property to the State Board of Accounts. WHEREAS, pursuant to IC 5-11-1-270), 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; and WHEREAS, pursuant to IC 5-11-1-27(1), a public officer 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, including: (1) information obtained as a result of a police report; (2) an internal audit finding; or (3) 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 serving in the area governed by the political subdivision; and WHEREAS, Amended State Examiner Directive 2015-6 directs each political subdivision to develop its own policy on materiality; and WHEREAS, the City of Carmel does not condone any erroneous or irregular variances, losses, shortages, or thefts of political subdivision funds or property but recognizes that whenever a public officer has actual knowledge or reasonable certainty that a misappropriation has occurred (regardless of the dollar amount), he must send written notice of the misappropriation to the State Board of Accounts and the local prosecuting attorney; NOW, THEREFORE, the Common Council ordains and states as follows: Section 1. The foregoing Recitals are fully incorporated herein by this reference. Section 2. All erroneous or irregular variances, losses, shortages, or thefts of City funds or property, or funds or property the City holds in trust, shall be promptly reported to the direct supervisor of the employee who identifies the issue. The supervisor shall then report the same to the Mayor, Fiscal Officer and Corporation Counsel. Section 3. Written notice shall immediately be sent to the State Board of Accounts and the appropriate prosecuting attorney's office of any erroneous or irregular variances, losses, shortages, or thefts of cash in excess of $5,000, except for inadvertent clerical errors that are identified timely and corrected promptly with no loss to the City. This Ordinance was prepared by Douglas C. Haney, Corporation Counsel, on 4/15/16 at 1:44 p.m. No subsequent revision to this Ordinance has been reviewed by Mr. Haney for legal sufficiency or otherwise. SPONSOR(S): Councilor Finkam Section 4. Written notice shall immediately be sent to the State Board of Accounts and the appropriate prosecuting attorney's office of any erroneous or irregular variances, losses, shortages, or thefts of non-cash items in excess of $20,000 estimated market value, except for those resulting from inadvertent clerical errors or misplacements that are identified timely and corrected promptly with no loss to the City, and except for losses from genuine accidents. Section 5. Written notice shall immediately be sent to the State Board of Accounts and the appropriate prosecuting attorney's office when a public officer has actual knowledge or reasonable cause to believe there has been a misappropriation of public funds or assets. Section 6. For erroneous or irregular variances, losses, shortages, or thefts that do not meet the criteria specified in Sections 3, 4 and 5, the Mayor, Fiscal Officer and Corporation Counsel shall meet to discuss the matter. Following the discussion, the Corporation Counsel shall determine, in his sole discretion, if it is in the best interest of the taxpayers of Carmel to seek recovery of the funds or that recovery shall not be pursued because the cost of recovering the asset is reasonably estimated to exceed the cost of said asset. Section 7. All erroneous or irregular immaterial variances, losses, shortage or thefts of cash or non-cash items shall be documented and resolved. The Office of Corporation Counsel and the Department of Human Resources shall maintain the documents, pursuant to State law. Section 8. If any portion of this Ordinance is for any reason declared to be ' unconstitutional or invalid, such decision shall not affect the validity of the remaining portions of this Ordinance so long as enforcement of same can be given the same effect. Section 9. This Ordinance shall.be in full force and effect from and after its passage and signing by the Mayor. PASSED by the Common Council of the City of Carmel, Indiana, this day of 1M� , 2016, by a vote of _2 ayes and r_? nays. COMMON COUNCIL FOR THE CITY OF CARME Reinald E. Carter, President Kevin D. Rider -.4 6YAA� Su Fi am, Vi -President Carol Schleif () In & cavu(aaod ra"W1 Laura D. Campbell v Jeff1 This Ordinance was prepared by Douglas C. Haney, Corporation Counsel, 0r45/t at 1:44 p.m. No subsequent revision to this Ordinance has been reviewed by Mr. Haney for legal sufficiency or otherwise. 30,U r- ,. H. Bru Kimball SPONSOR(S): Councilor Finkam f Presented by me to the Mayor of the City of Carmel, Indiana this 'day of � j ` , 2016, at &&E P.M. Approved by me, Mayor of the City of Carmel, Indiana, this day of �9 P9 / L , 2016, at p.M. oz, w Jame,ff Brainard, Mayor This Ordinance was prepared by Douglas C. Haney, Corporation Counsel, on 4/15/16 at 1:44 p.m. No subsequent revision to this Ordinance has been reviewed by Mr. Haney for legal sufficiency or otherwise.