69-16 Internal Controls Ordinance

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CITY OF SOUTH BEND, INDIANA of management must assess the costs, benefits, and risks when designing controls to develop a positive control environment and compensate for the risks of non - compliance, loss of assets, or unreliable reporting while accomplishing the City mission. The following specific internal control policies are adopted for use by City Departments: Payroll Activities • Salaries and wage rates are verified by the Human Resources Department. • The responsibilities for hiring, terminating, and approving promotions are segregated from those preparing payroll transactions or inputting data. • The responsibilities for approving time sheets are segregated from those for preparing payroll transactions or inputting data. • Employees' time and attendance records are approved by their supervisors. • Corrections to recorded time and attendance records are approved by the employee and employee's supervisor. • Procedures are in place to ensure that changes in employment status are promptly reported to the payroll processing unit. • Payroll disbursements are reviewed and approved by an authorized individual prior to payment. • Access to payroll applications is appropriately controlled by user logins and passwords. • Changes to a payroll disbursement are approved by an individual other than the ones authorized to process the changes. • Access to the electronic signature used to sign payroll checks is adequately controlled. • Check stock for printed checks is stored in a secure location. • Unclaimed payroll checks are returned to Finance Department. • Employees are cross - trained on the payroll process; those assigned to payroll take regular vacations. • The City uses a "positive pay" program with 1 St Source Bank to preauthorize payroll checks to be honored by the bank and identify fraudulent checks issued by other parties attempting to use City information. Disbursement Activities • The responsibility for approving claims is segregated from those preparing the claims wherever possible. • Checks are written by an individual other than the one approving the claim. • Claims for payment (including trustee escrow payments) are reviewed and approved by the Board of Public Works, Redevelopment Commission, or other appropriate public body prior to payment. • A reconcilement is completed between the claims for payment approved by the board and the actual disbursements posted to the ledger. • The responsibility for acknowledging the receipt of goods or services is segregated from those preparing claims and writing checks. • Vendor checks are accounted for in numerical order and reconciled to the disbursement ledger. • Invoices or other receipts are attached to each claim to support the disbursement. Internal Controls Policy Pursuant to I.C. 5- 11 -1 -27 7