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
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Su Fi am, Vi -President Carol Schleif
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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.
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H. Bru Kimball
SPONSOR(S): Councilor Finkam
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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
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P9 / L , 2016, at p.M.
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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.