69-16 Internal Controls Ordinance

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Y and a tracking system could be imple- mented to keep tabs on which depart- ment managers consistently meet this responsibility. Communication with department heads should', stress the importance of administrative review of timecards. The payroll process should be monitored closely, with adjustments enacted immediately and a strategy developed to help prevent the mistakes from recurring. Preparation of an easy -to -read and readily accessible document on internal control is also important, since the document can give employees and management a clear outline of their responsibilities. In Indiana, local govern- ment units can comply with the new internal control requirements by adopting the SBOA's minimum standards, which encom- pass both COSO's framework and the GAO's Green Book. Local govern- ment may also adopt other standards or procedures tailor -made for their own needs. The approach taken in the Porter County Auditor's Office has been to develop its own internal control procedures to augment the standards adopted i at the countywide 3 level. The func- tions unique to the auditor's office in need of enhanced controls were iden- tified, and controls i were developed for each. At staff meet- ings, employees discuss the objec- tives of each office function and iden- tify the threats they feel could impede the accom- plishment of those objectives. The By understanding how internal control systems have relevance to our daily f lives, employees should be more apt to recognize the need for enhanced controls at the workplace open discussion is important not just to achieve staff acceptance of new or enhanced controls, but also to help employees understand the challenges faced by their colleagues who may have different job duties than their own. One component of internal control that may be particularly helpful in gaining staff acceptance is the control environment, as explained in Figure 3. By documenting in writing a commitment to ethics, account- ability and transparency, manage- ment makes it clear what is expected of staff. However, this expectation works both ways. It is up to manage- ment to set a responsible "tone at the top." Employees who do not perceive their managers as being engaged or responsible may not feel they must provide outstanding work. On the other hand, managers who lead by example provide the foundation necessary for an effective internal control system. Local government managers who emphasize to their employees that internal control is an objective- driven 24 JOURNAL OF GOVERNMENT FINANCIAL MANAGEMENT FALL 2016