Establishing Internal Control Standards and Establishing a Materiality Threshold

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CITY OF SOUTH BEND, INDIANA source for information and assistance to staff and Department Heads on this topic and will make resources available to assist in administering this policy. The Human Resources Department is responsible for internal controls over employee recruitment, hiring, separation, promotion, job classification, employee rights, and salary administration. The Director of Human Resources (or his or her designee) and Corporation Counsel are the City sources for information and assistance on this topic and will make resources available to assist in administering this policy. All levels of internal control are subject to examination by external auditors who are required to report on the adequacy of internal controls over finance and compliance. Department Heads are responsible for prompt corrective action on all internal control findings and recommendations made by internal and external auditors. The audit process is completed only after Department Heads receive the audit results and take action to correct internal control weaknesses, improve systems, or demonstrate that management action is not warranted. Department Heads have the responsibility to ensure that those who report to them have adequate knowledge, skills, and abilities to function within, and contribute to, an effective internal control environment. This includes providing access to appropriate training on topics relevant to their job responsibilities. Principle 4: Management demonstrates a commitment to recruit, develop, and retain competent individuals. The City Employee Handbook provides a roadmap for recruiting and maintaining quality employees. Prior to employment, individuals may be subject to pre - employment background screening and/or a credit history check. While employed, City Employees are entitled to a benefits package including Health Insurance and certain other Post - Employment Benefits. The City will continue to assess the best recruitment tools for the different skill sets necessary to adequately implement and maintain quality internal controls. Job descriptions will be updated where necessary to reflect internal control responsibilities and duties. Employees will be regularly trained in internal control methods and all training will be documented in employees' personnel files. Employees will be regularly evaluated by their supervisors on internal control duties and receive feedback on possible improvements. Principle 5: Management evaluates performance and holds individuals accountable for their internal control responsibilities. Individuals are held accountable for their internal control responsibilities through a recognized structure which includes relevant job descriptions, operating procedures, periodic reviews, regular feedback, and a progressive disciplinary policy. Additionally, City Administration seeks to address issues in specific departments and positions through regular meetings with Department Heads. Internal Controls Policy Pursuant to I.C. 5- 11 -1 -27 3