Ordinance Regarding Thresholds Application To

ORDINANCE NO.

ORDINANCE REGARDING THRESHOLDS APPLICATION TO

THE TOWN OF McCORDSVILLE, INDIANA

WHEREAS, IC 5-11-1-27(j) requires 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, State Examiner Directive 2015-6 directs each political subdivision to determine its own policy on materiality; and

WHEREAS, the Town Council of the Town of McCordsville, Indiana, does not condone any erroneous or irregular material variances, losses, shortages, or thefts of political subdivision funds or property but recognizes that relatively small items may not justify the cost of the involvement of the State Board of Accounts; and

WHEREAS, the Clerk-Treasurer has issued a directive, attached hereto as Exhibit A, stating a policy on materiality and a process for reporting materials items.

NOW, THEREFORE, BE IT ORDAINED, by the Town Council of the Town of McCordsville, Indiana, as follows:

SECTION I

The Town Council of the Town of McCordsville, Indiana, endorses the Clerk-Treasurer’s declaration, attached as Exhibit A, regarding a policy on materiality and a process for reporting material items.

SECTION II

The Town Council of the Town of McCordsville, Indiana, calls upon the Clerk-Treasurer and all Town officials, employees, and agents to enforce and comply with the policy on materiality and process for reporting material items and to report noteworthy items to the Town Council Oversight Committee or the full Town Council.

SECTION III

The Town Council of the Town of McCordsville, Indiana, directs its Oversight Committee to monitor, as it deems necessary, compliance with the policy on materiality and process for reporting material items and report noteworthy items to the full Town Council.

SECTION IV

The Town Council of the Town of McCordsville, Indiana, asks the Clerk-Treasurer to advise the Town Council of any changes in the policy on materiality and process for reporting material items.

SECTION V

This Ordinance shall be in full force and effect from and after its passage and due publication.

SECTION VI

Introduced and filed on the _____ day of ______, 2016. A motion to consider on first reading on the day of introduction was offered and sustained by a vote of ___ in favor and ___ opposed pursuant to I.C. 36-5-2-9.8.

Duly ordained and passed this ______day of ______, 2016 by the Town Council of the Town of McCordsville, Hancock County, Indiana, having been passed by a vote of ___ in favor and ___ opposed.

TOWN OF McCORDSVILLE, INDIANA, BY ITS TOWN COUNCIL

Voting Affirmative: Voting Opposed:

______

Larry LongmanLarry Longman

______

Bryan BurneyBryan Burney

______

Maxwell A. MeiseMaxwell A. Meise

______

Branden WilliamsBranden Williams

______

Barry Wood Barry Wood

ATTEST:

______

Catherine C. Gardner

Clerk-Treasurer

This instrument was prepared by Gregg H. Morelock, BRAND & MORELOCK, P.O. Box 6, 6 West South Street, Greenfield, IN 46140.

I affirm, under the penalties for perjury, that I have taken reasonable care to redact each Social Security number in this document, unless required by law. Gregg H. Morelock.

F:\Gregg\MUNICIPAL\McCordsville\Ordinances\Materiality - rev. 04-11-16.wpd

EXHIBIT A

CLERK-TREASURER DIRECTIVE

Policy on Materiality and Process for Reporting Material Items

WHEREAS, State Examiner Directive 2015-6 directs each political subdivision to determine its own policy on materiality; and

NOW, THEREFORE, I, Catherine C. Gardner, Clerk-Treasurer of the Town of McCordsville, Indiana, direct as follows:

SECTION I

All erroneous or irregular variances, losses, shortages, or thefts of non-cash Town subdivision property in excess of $750.00 shall be reported to the Clerk-Treasurer or her designee promptly.

SECTION II

It will be the policy of the Clerk-Treasurer to report to the State Board of Accounts any erroneous or irregular variances, losses, shortages, or thefts of cash in excess of $55.50, except for inadvertent clerical errors that are identified timely and promptly corrected with no loss to the Town.

SECTION III

It will be the policy of the Clerk-Treasurer to report promptly to the State Board of Accounts any erroneous or irregular variances, losses, shortages, or thefts of non-cash items in excess of $750.00, estimated market value, except for those resulting from inadvertent clerical errors or misplacements that are identified timely and promptly corrected with no loss to the Town, and except for losses from genuine accidents.

SECTION IV

All Town elected officials are asked, and all Town employees and agents are directed, to comply with this policy, and the Town Council is asked to endorse it.

Executed this ______day of ______, 2016.

______

Catherine C. Gardner, Clerk-Treasurer

Town of McCordsville, Indiana