§ 16-22-3-12 — Hospital financial records; annual report

(a) The state board of accounts:
(1) shall approve or prescribe the manner in which the hospital
records are kept;
(2) except as provided in subsection (c), shall audit the records of
the hospital; and
(3) may approve forms for use by all hospitals or groups of
hospitals.
(b) The governing board may use the calendar year or a fiscal year
for maintaining hospital financial records. A hospital that receives a
financial subsidy from the county for hospital operations, excluding
mental health or ambulance services, during the preceding calendar or
fiscal year must file with the county executive and the county fiscal
body an annual report showing the income and expenses of the
operating fund for the preceding calendar or fiscal year by major
classification according to the chart of accounts approved by the state
board of accounts. If the hospital uses a calendar year for maintaining
financial records, the report must be filed not later than the last
Monday in March of each year. If the hospital uses a fiscal year for
maintaining financial records, the report must be filed not later than
ninety (90) days after the close of the fiscal year. The annual report
shall be published one (1) time. Hospital financial records may be kept
in hard copy, on microfilm, or via another data system acceptable to the
state board of accounts.
(c) A hospital may elect to have an audit required under subsection
(a) performed by an independent certified public accounting firm that
is experienced in hospital matters. The audit report must be kept on file
at the hospital and a copy must be provided to the state board of
accounts. The audit engagement by a certified public accounting firm
must be performed pursuant to guidelines established by the state board
of accounts.
(d) If a hospital elects to use an independent certified public
accounting firm under subsection (c), the hospital shall provide written
notice to the state board of accounts not less than one hundred eighty
(180) days before the beginning of the hospital's fiscal year in which
the hospital elects to be audited by an independent certified public
accounting firm. For that hospital fiscal year, and each following fiscal
year until the hospital terminates the hospital's use of an independent
certified public accounting firm, the hospital shall use an independent
certified public accounting firm under subsection (c). A hospital shall
terminate its use of an independent certified public accounting firm
under subsection (c) by providing written notice to the state board of
accounts not less than one hundred eighty (180) days before the
beginning of the hospital's fiscal year in which the hospital elects not
to be audited by an independent certified public accounting firm. For
that hospital fiscal year, and each following fiscal year until the
hospital elects to use an independent certified public accounting firm
as provided under this subsection, the hospital must be audited by the
state board of accounts for purposes of section 12(a)(2) of this chapter.
For any fiscal year in which the hospital does not use an independent
certified public accounting firm under subsection (c), the hospital shall
be audited by the state board of accounts.
(e) Any information concerning the specific salaries paid to
individual employees of a hospital may be withheld by the hospital
from disclosure under IC 5-14-3. However, the information must be
provided to the state board of accounts upon request. The state board
of accounts shall maintain the confidentiality of the information as
required under IC 5-14-3-6.5.
[Pre-1993 Recodification Citation: 16-12.1-3-10.]

Legislative History

As added by P.L.2-1993, SEC.5. Amended by P.L.91-2002, SEC.8 and P.L.100-2002, SEC.9; P.L.208-2016, SEC.5.