On June 12, 2017 a memo was issued by State Examiner Paul Joyce regarding our audit position and implementation process regarding changes enacted by House Enrolled Act 1002. Due to questions on uniform implementation and other issues, the State Examiner stayed the required us of MVH forms and procedures. The stay was formally noted in a memo released on June 29, 2017. You can read the memo from June 29 by clicking here.
Cities providing financial assistance to non-governmental entities are required to notify those entities annually in writing the following information:
1) The Entity Annual Report (E-1) filing requirement established by IC 5-11-1-4 and the audit requirement established by IC 5-11-1-9;
2) The source(s) of the funding provided;
a) Local and/or state funds (in the case of subsidies, contributions, or general aid),
b) Federal grants passed through including the formal name of the program and CFDA number, or
c) Fee for service arrangements,
3) The State Board of Accounts may request documentation to support the categorization of the financial assistance,
4) The E-1 is not to be confused with the Secretary of State’s Business Entity report, and
5) The entity may obtain additional information from the State Board of Accounts at firstname.lastname@example.org.
Furthermore, this financial assistance provided is to be reported by the City on the Annual Financial Report via Gateway.
‘Entity” is defined in IC 5-11-1-16 as “any provider of goods, services, or other benefits that is: (1) maintained in whole or in part at public expense; or (2) supported in whole or in part by appropriations or public funds or by taxation.” This includes for-profit and not-for-profit corporations, unincorporated associations, organizations, individuals, etc. Examples of non-governmental entities are volunteer fire departments, a local YMCA, youth leagues, senior citizen centers, 4-H clubs, daycare centers, health service organizations, emergency medical service organizations, community centers, historical societies, etc.
Financial assistance to non-governmental entities is defined as payments received in the form of grants (whether from local, state, or federal sources), subsidies, contributions as permitted by statute, aid, or other agreements. For more information on what constitutes financial assistance, please refer to the State Board of Accounts’ Uniform Compliance Guidelines for Examinations of Entities Receiving Financial Assistance from Governmental Sources found on the State Board of Accounts’ website at www.in.gov/sboa under Private Examiner Audits/Non-Governmental Entities Receiving Governmental Assistance/Uniform Compliance Guidelines.
Each non-governmental entity receiving financial assistance from governmental units is required to submit a Gateway financial report, the E-1, in accordance with IC 5-11-1-4(a). Information requested includes the source and use of financial assistance provided by governmental units. The entity is subject to a State Board of Accounts audit in accordance with IC 5-11-1-9 if certain funding thresholds are met.
Each county is its own unit of government and is referred to at times as a type of political subdivision or municipal corporation. There is a collaboration of various elected and appointed officials necessary to successfully fulfill the statutory purposes and functions of county government. One of the essential elements of county government and its officials is the proper accountability of the county’s assets as well as transparency of financial activity. The State Board of Accounts is tasked with formulating and prescribing a system of fiscal accountability as well as examining financial activity and compliance with statutory and accounting requirements. To this end, the State Board of Accounts has issued standard guidance through its Accounting and Uniform Compliance Guidelines Manual for Counties of Indiana that must be followed by all county officials. For certain offices standards applicable to those specific offices have also been developed and may be found in the manuals bearing that office’s name. Additional standards are found through the quarterly county bulletins and State Examiner’s directives.
Effective July 1, 2017, IC 5-11-5-1.5 (House Bill 1031) went into effect that requires entities audited by the SBOA to submit a Corrective Action Plan for any noncompliance issues that have been repeated from prior reports.
We have created the following guidelines and FAQs in regards to this: 1031 Guidelines
If you need to submit a CAP, please click here.
CAP Template - This is a template of the CAP for your reference, but please remember, you have to submit it online via the link above. For any modifications that are requested by the SBOA, we will contact the submitter via email.
Please submit any questions you have related to this process to CAP@sboa.in.gov.