Establishing Internal Control Standards and Establishing a Materiality Threshold

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CITY OF SOUTH BEND, INDIANA Credit Cards Transactions • A designated official or employee oversees the issuance and use of the credit cards. • During the disbursement process, a designated person reviews transactions listed on the credit card statements for sufficient documentation prior to payment. Budgeting Activities • The City Administration will budget all funds and accounts. • Budget forecasts will be updated annually covering a multi -year time period. • Budget vs actual reports for revenue and expenditures will be prepared monthly. The City Finance Department will follow up on significant variations between budget and actual results. Information Technology • The City Innovation & Technology (IT) Department will ensure that all users (employees) have a unique username. • The City Human Resources Department will immediately notify the IT Department when an employee is terminated so that IT can deactivate the user's access to all computer related applications. • The IT Department will ensure that an authentication system (i.e. password) is in place so access to the network and computer related applications is protected and limited to the appropriate users. • Users will be required to lock or log off their computer before stepping away from their computer for an extended period of time. • Users will be required to log off their accounts when they leave work. • The IT Department will give a user access only to the specific applications and network files the user needs to perform his or her job duties. • The IT Department will monitor access to the network and audit the logins for applications, including the financial software. Principle 11: Management designs the political subdivision's information system and related control activities to achieve objectives and respond to risks. The Finance Department and Department Heads will work with the Innovation and Technology Department to ensure that information technology is used as an integral part of the internal control system. This may include, but not be limited to: • Setting permission such that only certain users may perform certain tasks • Using technology to accomplish segregation of duties by forcing duties to be completed by different users • Automating certain processes and calculations • Limiting the authority to access different components of various software to employees with duties specifically related to that component • Prohibiting user ID and password sharing among employees • Restricting the authority to correct or make adjustments to records to key employees • Requiring the use of prescribed forms or the approval of alternative forms Internal Controls Policy Pursuant to I.C. 5- 11 -1 -27