Authors: Representative Eric Allan Koch
Co-authors: Representative Matthew Lehman
Sponsors: Senator Travis Holdman, Senator Randall Head
Co-Sponsors: Senator Lonnie Randolph
Advisors: Representative Kevin Mahan, Representative John Bartlett, Representative Sue Errington
Beginning July 1, 2016, requires the following: (1) The legislative body of a political subdivision to ensure appropriate training of personnel concerning the political subdivision's internal control system. (2) The fiscal officer of a political subdivision to certify annually that certain internal controls and procedures are in place and that personnel have received training in the internal controls and procedures. (3) The state board of accounts (board) to issue a comment in its examination report if internal controls and procedures are not adopted or personnel have not received training. (4) The board to report the uncorrected violations to the department of local government finance (DLGF). (5) The DLGF may not approve the political subdivision's budget or supplemental appropriations if the political subdivision fails to adopt internal controls and procedures or train personnel. (6) Certain reporting and followup related to a report of misappropriation of political subdivision funds. (7) Board action for material variances, losses, shortages, or thefts. Requires the board to develop or designate personnel training materials not later than November 1, 2015. Effective July 1, 2016, provides for restitution related to attorney general proceedings. Requires internal audits, internal control reviews, and reporting by the bureau of motor vehicles, the office of the secretary of family and social services, and the department of state revenue. Provides that certain political subdivisions may not issue bonds unless: (1) the political subdivision has filed required annual financial reports with the state board of accounts or (in the case of a school corporation) the department of education; and (2) the annual financial reports are prepared in accordance with all generally accepted accounting principles for financial accounting and reporting (GAAP) as established by the Governmental Accounting Standards Board. Provides that these requirements apply only as follows for school corporations: (1) After August 15, 2019, and before August 16, 2020, to a school corporation that has an average daily membership count (ADM) of greater than 25,000. (2) After August 15, 2020, to a school corporation that has an ADM of greater than 15,000. Provides that these requirements apply only as follows for counties and municipalities: (1) After June 30, 2017, and before July 1, 2019, to counties and municipalities with a population greater than 250,000. (2) After June 30, 2019, and before July 1, 2020, to a county with a population greater than 175,000 and to a municipality with a population greater than 100,000. (3) After June 30, 2020, to a county with a population greater than 100,000 and to a municipality with a population greater than 75,000. Provides that the state examiner may waive the requirement that the annual financial report comply with generally accepted accounting principles. Allows the executive or member of the fiscal body of a city, town, or township (unit) to serve as a volunteer firefighter for a volunteer fire department or a fire department that provides fire protection services to the unit. Requires a fiscal body member of a unit who is also a volunteer firefighter for a fire department providing fire protection services to the unit to abstain from voting on the unit's budget and tax levies. Provides that if at least a majority of the members of the unit abstain from voting on the budget, the most recent annual appropriations and annual tax levy are continued for the ensuing budget year. Provides that the executive of the unit may petition the county fiscal body for an increase in the budget or for additional appropriations. Prohibits a relative of: (1) an active county police officer; or (2) the sheriff; from serving as a member of the sheriff's merit board.