This text of Indiana § 5-11-5-1.5 (Failure of audited entity to comply; actions) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
5.
(a)As used in this section, "audited entity"
includes only the following:
(1)A state agency (as defined in IC 4-13-1-1).
(4)A body corporate and politic.
(5)A state educational institution.
(6)An entity to the extent that the entity is required to be
examined under IC 5-11-1-9 or another law.
(b)If an examination report contains a finding that an audited entity
failed to observe a uniform compliance guideline established under IC 5-11-1-24(a) or to comply with a specific law, the audited entity shall
take action to address the audit finding.
(c)If a subsequent examination report of the audited entity contains
a finding that is the same as or substantially similar to the finding
contained in the previous examination report described in su
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5. (a) As used in this section, "audited entity"
includes only the following:
(1) A state agency (as defined in IC 4-13-1-1).
(2) A public hospital.
(3) A municipality.
(4) A body corporate and politic.
(5) A state educational institution.
(6) An entity to the extent that the entity is required to be
examined under IC 5-11-1-9 or another law.
(b) If an examination report contains a finding that an audited entity
failed to observe a uniform compliance guideline established under IC 5-11-1-24(a) or to comply with a specific law, the audited entity shall
take action to address the audit finding.
(c) If a subsequent examination report of the audited entity contains
a finding that is the same as or substantially similar to the finding
contained in the previous examination report described in subsection
(b), the public officer of the audited entity shall file a corrective action
plan as a written response to the report under section 1(b) of this
chapter.
(d) The state board of accounts shall create guidelines for use by an
audited entity to establish a corrective action plan described in
subsection (c). The guidelines must include a requirement that the issue
that is the subject of a finding described in subsection (c) must be
corrected not later than six (6) months after the date on which the
corrective action plan is filed.
(e) After the successful completion of a corrective action plan by an
audited entity that was required to file a corrective action plan under
subsection (c), the audited entity shall notify the state board of
accounts. The state board of accounts shall review each corrective
action plan. If a corrective action plan is not implemented or the issue
that is the subject of the finding is not corrected within six (6) months,
the state board of accounts shall prepare a memorandum summarizing:
(1) the examination report finding;
(2) the corrective action plan;
(3) the manner by which the examination report finding was or
was not addressed; and
(4) a recommended course of action.
(f) The state board of accounts shall present to the audit committee
established by IC 2-5-1.1-6.3 a memorandum described in subsection
(e). If the audit committee determines that further action should be
taken, the audit committee may do any of the following:
(1) Request a written statement from the public officer of the
audited entity.
(2) Request the personal attendance of the public officer of the
audited entity at the next audit committee meeting.
(3) Request that the public officer of the audited entity take
corrective action.
(4) Notify the:
(A) office of management and budget (in the case of an audited
entity that is a state agency, a body corporate and politic, or a
state educational institution); or
(B) officer or chief executive officer, legislative body, and
fiscal body of the audited entity and the department of local
government finance (in the case of any other audited entity);
that the audited entity refused to correct the audited entity's failure
to observe a uniform compliance guideline established under IC 5-11-1-24(a), or refused to comply with a specific law, with notice
of the recommendation described in subsection (e)(4) published
on the general assembly's website.
(5) Refer the facts drawn from the examination and the actions
taken under this section for investigation and prosecution of a
violation of IC 5-11-1-10 or IC 5-11-1-21 to the:
(A) inspector general, in the case of an audited entity that is a
state agency, a body corporate and politic, or a state educational
institution; or
(B) prosecuting attorney of the county in which a violation of
IC 5-11-1-10 or IC 5-11-1-21 may have been committed, in the
case of any other audited entity;
with notice of the referral published on the general assembly's
website. Notice of a referral described in clause (B) must be sent
to the officer or chief executive officer, legislative body, and
fiscal body of the audited entity.
(6) Recommend that legislation be introduced in the general
assembly to amend any statute under which the audited entity is
found to be noncompliant.
(7) Recommend that the state board of accounts examine the
audited entity within the calendar year following the year in
which the audited entity was required to file a corrective action
plan under subsection (c).
(g) When implementing this section, the state board of accounts
may issue confidential management letters, based on professional
auditing standards, to an audited entity in a situation involving
noncompliance that does not result in the establishment of a corrective
action plan but that must be brought to the attention of the audited
entity's governing body.