INDIANAPOLIS — State agencies and local governments, including schools, likely no longer will be permitted to ignore any financial or compliance issues identified in their regular audits by the State Board of Accounts.
The General Assembly gave final approval Thursday to House Bill 1031 requiring public officials to promptly address audit findings, or face an increasing range of consequences.
For example, after a repeated audit finding, the responsible official would have to submit a corrective action plan to the state that specifically details how the issue will be resolved within six months.
Continued noncompliance could require the official to appear before the Legislature's audit committee, which would have the power to refer such incidents to state or local law enforcement for possible prosecution.
The sponsor, state Rep. Hal Slager, R-Schererville, said the measure is needed to ensure that audited entities are correcting their actions that do not comport with state law.
An earlier provision to freeze spending for continued noncompliance did not make it into the final version of the measure now headed to Republican Gov. Eric Holcomb for his signature or veto.