Chart of Account Revisions
The Chart of Accounts for cities and towns is being revised from a three-digit number to a four-digit number. The effective date of the change will be January 1, 2022. We have conducted training on the changes over the past year and a half and those materials are available under “Presentation and Training Materials”. In May, 2021, the revised list was emailed out to local units and can be viewed at the link below. Chapter 3 of the Accounting and Uniform Compliance Guidelines Manual for Cities and Towns will be updated and reissued in January, 2022.
Newly Elected Officials' Training Videos
We have recorded a series of webinars/videos for officials who were recently elected and will take office January 1, 2024. The videos can be viewed by anyone, but are directed toward newer Clerk-Treasurers, City Controllers, and Council members. Below are links to each video on our YouTube channel. Each video has a document containing slides from the PowerPoint presentation and most have other materials for your information.
In addition to the below and prior to the end of the year, we will be providing videos related to the filing of the Certified List of Employees and Compensation Paid to Public Employees (Form 100-R), which is due January 31 and the Annual Financial Report (AFR), which is due February 29.
- Overview and Introduction to SBOA
- Getting Started in the Office
- Public Official Bonds
- Bank Reconcilements
- Gateway Introduction
- Monthly Uploads in Gateway
- Annual Uploads in Gateway
- Getting Started with Internal Controls
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 email@example.com.
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 is required by IC 5-11-1-25 to determine the frequency of examinations of cities using risked based criteria. The frequency of examinations must not be less than once every four years. The criteria used to establish risk must include the following factors:
- A newly elected or appointed fiscal officer
- Annual Financial Reports that are not timely submitted or that contain material errors;
- Any other factor determined by the State Examiner and approved by the audit committee.
Examinations must be conducted annually for cities that require an annual audit (a) due to the receipt of federal financial assistance in an amount that subjects the city to a federal audit, (b) due to continuing disclosure requirements, or (c) as a condition of a public bond issuance.
By statute, cities are classified according to their populations. If a city has a population of 600,000 or more, it is considered a first class city. Cities with a population between 35,000 and 599,999 are considered second class cities while cities with populations below 35,000 are considered third class cities. If the population of a city changes and would put it within one of the other ranges, it does not automatically change classification. It can elect to change classification via ordinance adopted by its legislative body.
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.