§ 5-11-1-25 — Risk based examination criteria used to determine examination frequency; biennial school corporation examinations

Indiana § 5-11-1-25

• Jurisdiction: Indiana
• Title 5: STATE AND LOCAL ADMINISTRATION
• Art. 11: ACCOUNTING FOR PUBLIC FUNDS
• Ch. 1: State Board of Accounts Created

Text

(a) This section and section 24.4 of this
chapter do not limit the application of any law that requires a
municipality, a public hospital, another public office or public officer,
an entity, or another person or organization to be audited or otherwise
examined on an annual or other basis by:
(1) a certified public accountant; or
(2) a person other than the state examiner or the state board of
accounts.
(b) Subject to section 9 of this chapter and subsections (c) and (d),
the state board of accounts shall conduct examinations of audited
entities at the times determined by the state board of accounts, but not
less than once every four (4) years, using risk based examination
criteria that are established by the state board of accounts and approved
by the audit committee. The risk based examination criteria must
include the following risk factors:
(1) An audited entity has a newly elected or appointed fiscal
officer.
(2) An audited entity:
(A) has not timely filed; or
(B) has filed a materially incorrect or incomplete;
annual financial report required by section 4 of this chapter.
(3) A ratings agency that rates debt maintained by an audited
entity has determined an examination of the audited entity is
required more frequently than once every four (4) years.
(4) Any other factor determined by the state examiner and
approved by the audit committee.
(c) Examinations must be conducted annually for the following:
(1) The state.
(2) An audited entity (other than a school corporation) that
requires an annual audit:
(A) because of the receipt of federal financial assistance in an
amount that subjects the audited entity to an annual federal
audit;
(B) due to continuing disclosure requirements; or
(C) as a condition of a public bond issuance.
(3) A development authority.
An audited entity shall, under the guidelines established by the state
board of accounts, provide notice to the state examiner not later than
sixty (60) days after the close of the audited entity's fiscal year that the
audited entity is required to have an annual audit under subdivision (2).
(d) As permitted under this section since September 1, 1986 (the
effective date of P.L.3-1986, SECTION 16), examinations of school
corporations shall be conducted biennially.

Legislative History

As added by P.L.3-1986, SEC.16. Amended by P.L.2-1991, SEC.27; P.L.181-2015, SEC.17; P.L.257-2019, SEC.6; P.L.157-2020, SEC.12.