Establishing Internal Control Standards and Establishing a Materiality Threshold

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CITY OF SOUTH BEND, INDIANA Principle 12: Management implements control activities through policies. The City has an employee handbook that is regularly updated to communicate policies to employees. Additionally, the Finance Department regularly works with departments and employees who handle financial transactions to recommend and ensure best practices. All procedures are in writing and communicated frequently to all relevant employees. Policies are available both electronically (via the City website) and in hard copy form. In addition, the City Controller holds regular "Fiscal Officer" meetings where accounting and internal control issues are discussed. COMPONENT FOUR: INFORMATION AND COMMUNICATION Principle 13: Management uses quality information to achieve the political subdivision's objectives. The City strives to lead in the areas of financial transparency and accountability. By adopting standards and investing in systems that exceed State mandated minimums, City management provides employees and stakeholders with high quality information and informatics systems. The City Finance Department and Legal Department attend training and industry seminars to stay abreast of changes and developments in requirements and communicate that information effectively to impacted employees. The City Finance Department issues a variety of financial reports to the Mayor, Common Council and others, to ensure transparency and accountability. Financial reports are posted on the City's website. Principle 14: Management internally communicates the necessary quality information to achieve the political subdivision's objectives. Internal communications on internal controls are communicated through adoption of formal policies by relevant boards and commissions and/or the legislative body or documented through memos from the Finance, Legal or relevant Department Head. Internal memos and reports are maintained to document communication. Principle 15: Management externally communicates the necessary quality information to achieve the entity's objectives. Communications with the State Board of Accounts, other State agencies, grantor agencies, and regulatory agencies are documented by email, memos, letters, and other forms of written correspondence. All documents are maintained in accordance with the City and state's record retention policies. Reports and policies are cross checked for accuracy, relevancy, and timeliness of information. Internal Controls Policy Pursuant to I.C. 5- 11 -1 -27 10