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HomeMy WebLinkAboutD-2300-16 Uniform Internal Control StandardsSponsor: Councilor Carter ORDINANCE NO. D-2300-16 AN ORDINANCE OF THE COMMON COUNCIL OF THE CITY OF CARMEL, INDIANA, ADOPTING UNIFORM INTERNAL CONTROL STANDARDS FOR INDIANA POLITICAL SUBDIVISIONS IN ACCORDANCE WITH IC 5-11-1-27 Synopsis: Adopts the State Board of Accounts Uniform Internal Control Standards for Indiana Political Subdivisions manual as the City's internal control standard. WHEREAS, IC 5-11-1-27(g) requires the Common Council of the City of Carmel (the "Council") to ensure that minimum levels of internal control standards for political subdivisions developed by the State Board of Accounts are adopted and that the appropriate personnel under IC 5-11-1-27 (c) are trained upon such; WHEREAS, IC 5-11-1-27(e) and the State Board of Accounts require that the minimum level of internal control standards .of the City of Carmel (the "City") include the following components: (1) Control Environment (2) Risk Assessment (3) Control Activities .(4) Information and Communication and (5) Monitoring; WHEREAS, the Control Environment component refers to a commitment by the City to (1) integrity and ethical values, (2) oversee the internal control system, (3) establish an organizational structure that oversees the operations, reporting and compliance of the objectives of the internal control system, (4) attract, develop and retain competent individuals and (5) evaluate performance and hold individuals responsible for internal control duties and responsibilities; WHEREAS, the Risk Assessment component refers to a process that identifies and assesses internal and external risks and establishes tolerances of the City sufficient to (1) enable the identification of risks and the amount of risks tolerated, (2) identify, analyze and respond to risks, (3) consider the potential for fraud in the risk assessment process and (4) identify, analyze and respond to significant changes impacting the internal control system; WHEREAS, the Control Activities component refers to the City's actions and tools established through policies and procedures that go towards the detection, prevention or reduction of identified risks of loss while still providing government operations by (1) designing control activities, (2) designing information systems and (3) implementing policies; WHEREAS, the Information and Communication component refers to the internal and external communication needed to support an internal control system that is valued and used by (1) receiving quality information, (2) internally communicating quality information and (3) externally communicating quality information; Ordinance D-2300-16 Page One of Three This Ordinance was prepared by Jon Oberlander, Carmel Senior Assistant City Attorney, on 5/24/16 at 5:45 p.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. Sponsor: Councilor Carter WHEREAS, the Monitoring .Activities component refers to the activities of City officials to ensure that all of the components of the internal control system are functioning properly by (1) establishing and operating monitoring activities and then evaluating them on an ongoing or periodic basis and (2) the timely remediation of deficiencies; WHEREAS, to ensure that the minimum internal. control standards set forth above are met or exceeded, the City shall adopt the internal control standards set forth in IC 5-11-1-27 and the Uniform Internal Controls Standards for Indiana Political Subdivisions manual published by the State Board of Accounts in September 2015; WHEREAS, it is in the best interests of its citizens for the City to adopt internal control standards that comply with IC 5-11-1-27; NOW, THEREFORE, the Common Council ordains and states as follows: Section 1. The foregoing Recitals are fully incorporated herein by this reference. Section 2. The City hereby adopts the State Board of Accounts Uniform Internal Control Standards for Indiana Political Subdivisions manual as expressly written and published by the Indiana State Board of Accounts in September 2015, as amended_ from time to time, as its official internal control standards. Section 3. All officials and employees of the City are required to comply with the internal control standards. Section 4. Employees who.fail to comply with the internal control standards are subject to discipline, up to and including termination of employment. Section 5. An elected or appointed official who fails to comply with the internal control standards may be subject to any action allowed by law. Section 6. Those City "Personnel," as that term is defined in Indiana Code § 5-11-1- 27(c), whose official duties include receiving, processing,. depositing, disbursing, or otherwise having access to funds that belong to the federal government, state government, a political subdivision, or another, governmental entity, shall receive training concerning the internal control standards and procedures adopted by this Ordinance. Section 7. 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. Ordinance D-2300-16 Page Two of Three This Ordinance was prepared by Jon Oberlander, Carmel Senior Assistant City Attorney, on 5/24/16 at 5:45 p.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise. Sponsor: Councilor Carter Section 8. 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 1Ao 2016, by a vote of ayes and 'G nays. COMMON COUNCIL FOR THE CIT OF CAR Ro ald E. Carter, President kevin D. Rider �- Sue Finkam, Vic6-President Laura D. Campbell U4&ft Carol Schleif caA u_� Je W el Chri ' e S. Pauley, Clerk -Treasurer Pre ented by me to the Mayor of the City 2016, at Iry Approved by me, Mayor of the City of Carmel, Indiana, this ;Z& day of 0-u h e. 2016, at 3 Y S L -"M. Ordinance D-2300-16 Page Three of Three r Brainard, • This Ordinance was prepared by Jon Oberlander, Carmel Senior Assistant City Attorney, on 5/24/16 at 5:45 p.m. No subsequent revision to this Ordinance has been reviewed by Mr. Oberlander for legal sufficiency or otherwise.