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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 notforprofit@sboa.in.gov.
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.
Overview
There are currently 1,005 townships in the State of Indiana. Pursuant to IC 36-6-4-2(a), the trustee is the township executive. The trustee is elected to a four year term, with all trustees around the state being elected to the same four year term. The current term of the trustee is January 1, 2015 through December 31, 2018. The township board is also elected to a four year term on the same cycle as the trustee. Pursuant to IC 36-6-6-2(c), the township board is the township legislative body. Township boards consist of three individuals (except in Marion County, which has seven individuals on each board).
The duties of the trustee include (but is not limited to):
- Administering Township Assistance
- Providing Fire Protection
Pursuant to IC 5-11-1-25, examination of townships are to be conducted as determined by SBOA, but not less than once every 4 years.
Corrective Action Plan (CAP) - Repeat Findings
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.
Internal Control Standards
Standards
Indiana Code 5-11-1-27(e) provides that through the compliance guidelines authorized under IC 5-11-1-24 the state board of accounts shall define the acceptable minimum level of internal control standards for internal control systems of political subdivisions, including the following: (1) Control Environment. (2) Risk Assessment. (3) Control Activities. (4) Information and Communication. (5) Monitoring.
In response, the SBOA developed the Uniform Internal Control Standards for Indiana Political Subdivisions manual, which contains the acceptable minimum level of internal control standards.
Generally Accepted Government Auditing Standards (the "Yellow Book") prohibits the SBOA from prescribing the actual internal control procedures to be used by a political subdivision. However, the manual provides examples and case studies to demonstrate implementation strategies.
Internal Control Policy and Required Certifications
After June 30, 2016 IC 5-11-1-27(g) provides that the legislative body of each political subdivision must adopt the minimum internal control standards as defined by SBOA. Additionally, the legislative body must ensure that personnel receive training concerning the internal control standards and procedures adopted by the political subdivision.
At the time of submission of the Annual Financial Report (AFR) through Gateway, the fiscal officer must certify that the minimum internal control standards have been adopted and that personnel who are not otherwise on leave status have received training regarding these standards and procedures. Instructions for filing will be found as part of the AFR submission.
Apart from the required certification to be filed by the fiscal officer in Gateway during the submission of the 2016 AFR due March 1, 2017(or August 29, 2017 for Schools)], a certification for each elected official, appointee, and employee that meets the definition of personnel in IC 5-11-1-27(c), should be signed as evidence for their individual training. A certification form is provided below and can also be found under the Appendix found in the Uniform Internal Control Standards for Indiana Political Subdivisions manual. These certifications are to be maintained by the political subdivision on-site.
Training
Indiana Code 5-11-1-27(f) provides that the SBOA develop or designate approved personnel training materials concerning internal controls.
The SBOA has developed and is providing the following training materials on internal controls:
- Uniform Internal Control Standards for Indiana Political Subdivisions manual by the SBOA
- Live presentations by the SBOA at the annual called meetings and conferences around the state.
- The following Webinar:
The webinar can also be downloaded to your local computer by clicking here.
The SBOA has designated the following training materials on internal controls:
- Internal Control - Integrated Framework (2013) by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
- Guidance papers, principals, or frameworks on Governance and Operational Performance, Internal Controls, Enterprise Risk Management, or Fraud Deterrence by COSO.
- Standards for Internal Control in the Federal Government (the "Green Book") set forth by the Comptroller General of the United States.
In addition, the SBOA recognizes that political subdivisions may find appropriate internal control training materials on their own initiative. So, the following training materials may be designated:
- Materials identified and submitted by political subdivisions, which are approved by the SBOA and/or posted on the SBOA's website. Please contact Debbie Gibson
at (317) 232-2512 for further information. - The following entities have training materials that have been approved for use in lieu of the State Board of Accounts webinar.
- Central Indiana Education Service Center (CIESC)
- Safe Schools
- Scenario Learning
- Global Compliance Network
Other Information
This is a form that our agency may provide to you at the beginning of (or before) an engagement. This form allows us to gain a better understanding of your internal control structure and helps us in the planning of our engagement. There are section on this form that may not be applicable to your unit.
Uniform Compliance Guidelines
State Examiner Directives
See this page to view State Examiner Directives.
Manuals
Accounting and Financial Regulatory Reporting Manual
Accounting and Financial Regulatory Reporting Manual - 2013
Accounting and Financial Regulatory Reporting Manual - 2021 (For future implementation)
Internal Control Manual
Uniform Internal Control Standards for Indiana Political Subdivisions
Information Technology Manual
Uniform Compliance Guidelines Manual
You can view the manual online by clicking on one of the Chapters below:
- Table of Contents
- Chapter 1 - Prescribed Forms, Taxes, General Information, Local Policies, and Deposits and Investments (2021)
- Chapter 2 - The Township Trustee (2021)
- Chapter 3 - Description of Township and General Forms (2021)
- Chapter 4 - Budgets and Appropriations (2021)
- Chapter 5 - The Township Board (2021)
- Chapter 6 - Township Assistance (2021)
- Chapter 7 - Cemeteries (2021)
- Chapter 8 - Fire Protection and Emergency Services (2021)
- Chapter 9 - Recreation - Township Parks and Community Centers (2021)
- Chapter 10 - Township Libraries (2021)
- Chapter 11 - Miscellaneous Duties and Other Matters Relating to the Office of the Township Trustee (2021)
- Appendix (2021)
Bulletins
You can select the Township Bulletin you want by clicking on it below, or you can search the index by at the end of the most recent bulletin.
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