Bill Text: IN SB0507 | 2013 | Regular Session | Introduced
Bill Title: Local government internal control systems.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-14 - First reading: referred to Committee on Local Government [SB0507 Detail]
Download: Indiana-2013-SB0507-Introduced.html
Citations Affected: IC 5-11-1-27.
Synopsis: Local government internal control systems. Specifies that
the state board of accounts has authority to set standards and
procedures for internal control systems for any local government entity
that is required to submit financial reports to the state board of
accounts. (Current law establishes this authority for internal control
systems of counties, cities, towns, and townships.)
Effective: July 1, 2013.
January 14, 2013, read first time and referred to Committee on Local Government.
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A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
(1) A county.
(2) A city.
(3) A town.
(4) A township.
(5) A municipality not described in subdivisions (1) through (4).
(6) Any other local governmental unit, entity, or instrumentality that is required to submit a financial report under section 4 of this chapter.
(b) In the compliance guidelines authorized under section 24 of this chapter, the state board of accounts shall define the acceptable minimum level of:
(1) internal control standards; and
(2) internal control procedures;
for internal control systems of local governments. The internal control standards and procedures shall be developed to promote government accountability and transparency.
(c) All erroneous or irregular variances, losses, shortages, or thefts of local government funds or property shall be reported immediately to the state board of accounts. The state board of accounts shall:
(1) determine the amount of funds involved and report the amount to the appropriate government and law enforcement officials;
(2) determine the internal control weakness that contributed to or caused the condition; and
(3) make written recommendations to the appropriate legislative body or appropriate official overseeing the internal control system addressing:
(A) the method of correcting the condition; and
(B) the necessary internal control policies and internal control procedures that must be modified to prevent a recurrence of the condition.
(d) The legislative body or the appropriate official overseeing the internal control system shall immediately implement the policies and procedures recommended by the state board of accounts under subsection (c)(3)(B).