CHAPTER 5. REPORTS OF EXAMINATIONS BY STATE BOARD OF ACCOUNTS; RECOVERY OF PUBLIC FUNDS
IC 5-11-5
Chapter 5. Reports of Examinations by State Board of Accounts;
Recovery of Public Funds
IC 5-11-5-1
Reports of examination; copies; disclosure of examination results
prohibited; attorney general actions
Sec. 1. (a) Whenever an examination is made under this article, a
report of the examination shall be made. The report must include a
list of findings and shall be signed and verified by the examiner
making the examination. A finding that is critical of an examined
entity must be based upon one (1) of the following:
(1) Failure of the entity to observe a uniform compliance
guideline established under IC 5-11-1-24(a).
(2) Failure of the entity to comply with a specific law.
A report that includes a finding that is critical of an examined entity
must designate the uniform compliance guideline or the specific law
upon which the finding is based. The reports shall immediately be
filed with the state examiner, and, after inspection of the report, the
state examiner shall immediately file one (1) copy with the officer or
person examined, one (1) copy with the auditing department of the
municipality examined and reported upon, and one (1) copy in an
electronic format under IC 5-14-6 of the reports of examination of
state agencies, instrumentalities of the state, and federal funds
administered by the state with the legislative services agency, as staff
to the general assembly. Upon filing, the report becomes a part of the
public records of the office of the state examiner, of the office or the
person examined, of the auditing department of the municipality
examined and reported upon, and of the legislative services agency,
as staff to the general assembly. A report is open to public inspection
at all reasonable times after it is filed. If an examination discloses
malfeasance, misfeasance, or nonfeasance in office or of any officer
or employee, a copy of the report, signed and verified, shall be
placed by the state examiner with the attorney general. The attorney
general shall diligently institute and prosecute civil proceedings
against the delinquent officer, or upon the officer's official bond, or
both, and against any other proper person that will secure to the state
or to the proper municipality the recovery of any funds
misappropriated, diverted, or unaccounted for.
(b) Before an examination report is signed, verified, and filed as
required by subsection (a), the officer or the chief executive officer
of the state office, municipality, or entity examined must have an
opportunity to review the report and to file with the state examiner
a written response to that report. If a written response is filed, it
becomes a part of the examination report that is signed, verified, and
filed as required by subsection (a).
(c) Except as required by subsections (b) and (d), it is unlawful
for any deputy examiner, field examiner, or private examiner, before
an examination report is made public as provided by this section, to
make any disclosure of the result of any examination of any public
account, except to the state examiner or if directed to give publicity
to the examination report by the state examiner or by any court. If an
examination report shows or discloses the commission of a crime by
any person, it is the duty of the state examiner to transmit and present
the examination report to the grand jury of the county in which the
crime was committed at its first session after the making of the
examination report and at any subsequent sessions that may be
required. The state examiner shall furnish to the grand jury all
evidence at the state examiner's command necessary in the
investigation and prosecution of the crime.
(d) If, during an examination under this article, a deputy
examiner, field examiner, or private examiner acting as an agent of
the state examiner determines that the following conditions are
satisfied, the examiner shall report the determination to the state
examiner:
(1) A substantial amount of public funds has been
misappropriated or diverted.
(2) The deputy examiner, field examiner, or private examiner
acting as an agent of the state examiner has a reasonable belief
that the malfeasance or misfeasance that resulted in the
misappropriation or diversion of the public funds was
committed by the officer or an employee of the office.
(e) After receiving a preliminary report under subsection (d), the
state examiner may provide a copy of the report to the attorney
general. The attorney general may institute and prosecute civil
proceedings against the delinquent officer or employee, or upon the
officer's or employee's official bond, or both, and against any other
proper person that will secure to the state or to the proper
municipality the recovery of any funds misappropriated, diverted, or
unaccounted for.
(f) In an action under subsection (e), the attorney general may
attach the defendant's property under IC 34-25-2.
(g) A preliminary report under subsection (d) is confidential until
the final report under subsection (a) is issued, unless the attorney
general institutes an action under subsection (e) on the basis of the
preliminary report.
(Formerly: Acts 1917, c.115, s.1.) As amended by Acts 1980, P.L.30,
SEC.16; P.L.3-1986, SEC.18; P.L.39-1996, SEC.5; P.L.28-2004,
SEC.57; P.L.176-2009, SEC.4.
IC 5-11-5-2
Action for recovery of money
Sec. 2. Upon the written request of the attorney-general, the
prosecuting attorney of the circuit having jurisdiction of such action
shall appear with the attorney-general in all causes begun by the
attorney-general for the recovery of monies or for whatever purposes
growing out of such examination or report, and said prosecuting
attorney shall comply with all orders of the attorney-general relating
to the prosecution of such suits.
(Formerly: Acts 1917, c.115, s.2.) As amended by Acts 1978, P.L.2,
SEC.511.
IC 5-11-5-3
Compromise and adjustment of actions; discretion of attorney
general; appeal
Sec. 3. (a) The attorney general, by and with the consent of the
state examiner and the deputy examiners, may compromise and
adjust any action brought by the attorney general as required in this
article. In all cases where any money comes into the attorney
general's hands, the attorney general shall immediately pay the
money into the treasury of the state or of the municipality to which
it belongs, and shall have the money distributed among the proper
funds. The attorney general may, in the attorney general's discretion,
and shall, upon the order of the governor, appeal any such causes to
the court of appeals or the supreme court, or both, as the case may
be.
(b) The state examiner, and the field examiners and any private
examiner shall use reasonable diligence in the making of
investigations and in furnishing and securing evidence in connection
with the prosecution of suits concerning examination reports
whenever requested by the attorney general. Reasonable per diem
and expenses incurred by the examiner shall be paid in the amount
and in the manner provided by law in case of examinations.
(Formerly: Acts 1917, c.115, s.3.) As amended by Acts 1980, P.L.30,
SEC.17; P.L.3-1986, SEC.19.
IC 5-11-5-4
Party to actions; plaintiff's right of recovery
Sec. 4. Any action brought by the attorney general, as provided in
this article, may be brought in the name, as plaintiff, of the state of
Indiana, or such municipality or subdivision of the state of Indiana
as it may appear is entitled to recover moneys or to secure other
relief under such action. If the action is brought on an official bond
or official bonds, the cause may be brought in the name of the state
of Indiana on the relation of such plaintiff. In an action against a
township trustee, or ex-township trustee, or upon his official bond,
both the civil and school corporations may be named as plaintiff or
relator in the same action, and recovery may be had for the aggregate
amount due both corporations, but the court or jury trying the case
shall, in the finding or verdict, state the amount due each corporation.
In an action where a board of commissioners is plaintiff or relator,
the plaintiff shall be entitled to recover against the delinquent officer
or ex-officer, or upon his official bond or bonds, all such amounts as
would be recoverable under all the laws of this state, including this
chapter, in any or all actions by or upon the relation of the board of
commissioners, or by or upon the relation of any county officer or
other person authorized to sue for whatever funds, or for any funds
of which it is the custodian and with which it is chargeable, and in
case any of the funds so recovered are school funds, the court or jury
trying the case shall find and state the amount thereof. In any action
brought under this article, the plaintiff shall be entitled to recover, in
addition to the amount misappropriated, diverted or unaccounted for,
all such penalties and interest as might be recoverable under laws
other than this chapter.
The term municipality, as used in this article, shall be construed
to extend to, include and mean any county, township, city, town,
school corporation, special taxing district or other political
subdivision of Indiana.
(Formerly: Acts 1917, c.115, s.4.) As amended by Acts 1980, P.L.30,
SEC.18.
IC 5-11-5-5
Cumulative remedies
Sec. 5. The remedies provided for in this chapter are cumulative,
and this chapter shall not be construed to abridge the rights of other
officers to sue on behalf of municipalities, except to the extent that
where the attorney general has brought an action under the authority
of this chapter no other action shall be brought for the same matter
while such action brought by the attorney general is pending, and
excepting as other statutes relating thereto are expressly repealed by
Acts 1917, c.115, s.7.
(Formerly: Acts 1917, c.115, s.5.) As amended by P.L.25-1986,
SEC.39.
IC 5-11-5-6
Repealed
(Repealed by Acts 1980, P.L.30, SEC.19.)
IC 5-11-5-7
Collecting fines, costs, and fees for statutory violations, bond
forfeitures, and user's fees; compromises; collection costs;
disposition of collected money
Sec. 7. (a) The state board of accounts or a person designated in
writing by it may collect any of the following:
(1) Unpaid fines, costs, or fees that are imposed for violations
of statutes defining a crime or infraction and are owed to the
state or its political subdivisions.
(2) Money owed resulting from bond forfeitures under
IC 35-33-8-7.
(3) Unpaid user's fees incurred under a pretrial diversion
agreement by a person charged with a misdemeanor, infraction,
or ordinance violation.
(b) The state board of accounts or its agent may compromise the
amount of money owed in collecting money under this section.
(c) The costs of collection, including but not limited to reasonable
attorney's fees, may be added to money that is owed and collected
under this section. However, the costs of collection may not exceed
an amount that is equal to the amount of money that is owed.
(d) When money is collected under this section, the state board of
accounts or its agent shall deposit the money, less the costs of
collection, in accounts to the credit of the state or a political
subdivision as required by law.
(e) The costs of collecting money under this section shall be
determined by the state board of accounts and shall be paid from
money collected.
As added by P.L.43-1986, SEC.1. Amended by P.L.64-1989, SEC.1.
IC 5-11-5-8
Copies of reports filed with library upon request; public
inspection; renewal of request
Sec. 8. (a) Upon request of a public library, the state examiner
shall file with the library (without cost to the library) a copy of each
report of an examination concerning a municipality, state agency,
public hospital, license branch, or other entity that is located in the
same county as the library. The request must be in writing.
(b) This section does not require the state examiner to:
(1) file copies of reports completed before the receipt of a
request; or
(2) file a copy of any report with more than one (1) public
library located in the same county.
(c) Copies of reports filed under this section are open to public
inspection during hours that the library is open to the public.
(d) After a library has been granted a request to receive copies of
reports under this section, the library may continue as the repository
for those reports if it files an annual renewal of its request in writing
with the state board of accounts before January 15 of each year.
As added by P.L.65-1987, SEC.1.