2019 Gateway - Annual Financial Report (AFR) Changes
Gateway collects and provides access to information about how taxes and other public dollars are budgeted and spent by Indiana’s local units of government. The Annual Financial Report (AFR) is one of the reports submitted in Gateway that contains detail on the receipts and expenditures of each local government unit. We have updated several areas of the AFR due to changes in the Regulatory manual issued by the State Board of Accounts for reporting periods beginning January 1, 2019.
There will be significant changes to the data that will be uploaded to the AFR. These changes will be effective for the 2019 AFR submission due February 29th, 2020 (August 29th for Schools) for the 2019 financial activity of the unit. These changes will include the collection of additions and reductions to debt and capital assets with other changes outlined in the following schedule.
Local units should review these changes carefully as they will need to ensure they are collecting the information required for the updated AFR submission.
The financial information filed within the AFR is used in the units’ financial reports that are audited by the State Board of Accounts. These example reports show the format of what the unit’s financial statement will look like with these new changes. Local officials may want to compare these reports to their most recent audit report to obtain a better understanding of the changes.
The new Regulatory manual can be found at the link below and under the Uniform Compliance Guidelines section of this webpage.
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.
The SBOA examines the 240 public libraries serving the State of Indiana. Also, the SBOA provides training annually to library officials. In addition, the Directors of Audit Services provide advisory services to Libraries regarding applicable accounting principles, compliance guidelines, and laws.
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.