Indiana Code 5-11-1-25. Risk based examination criteria used to determine examination frequency; biennial school corporation examinations
(1) a certified public accountant; or
Terms Used In Indiana Code 5-11-1-25
- audit committee: refers to the audit and financial reporting subcommittee of the legislative council established by Indiana Code 5-11-1-16
- audited entity: has the meaning set forth in Indiana Code 5-11-1-16
- development authority: has the meaning set forth in the following:
Indiana Code 5-11-1-16
- entity: means any provider of goods, services, or other benefits that is:
Indiana Code 5-11-1-16
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- municipality: means any county, township, city, town, school corporation, special taxing district, or other political subdivision of Indiana. See Indiana Code 5-11-1-16
- public hospital: means either of the following:
Indiana Code 5-11-1-16
- public office: means the office of any and every individual who for or on behalf of the state or any municipality or any public hospital holds, receives, disburses, or keeps the accounts of the receipts and disbursements of any public funds. See Indiana Code 5-11-1-16
- public officer: means any individual who holds, receives, disburses, or is required by law to keep any account of public funds or other funds for which the individual is accountable by virtue of the individual's public office. See Indiana Code 5-11-1-16
- state: means any board, commission, department, division, bureau, committee, agency, governmental subdivision, military body, authority, or other instrumentality of the state, but does not include a municipality. See Indiana Code 5-11-1-16
(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.
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.