Blog, Government Practice
Indiana Political Subdivisions Must Adopt New Policies by July 1, 2016
Beginning July 1, 2016, Indiana Code § 5-11-1-27 (HEA 1264-2015) imposes a number of new requirements on all political subdivisions in Indiana that will significantly change the manner in which these entities operate. It is critical that each unit of local government takes action prior to July 1, 2016 to ensure that it will remain in compliance and receive budget approval from the Indiana Department of Local Government Finance (DLGF) later this year. Specifically, the new law requires, among other items, the following: (1) The legislative body of a political subdivision must develop and adopt a “system of internal controls” and ensure appropriate training of all personnel concerning the internal control system. (2) The fiscal officer of a political subdivision must certify annually that required and procedures are in place and that all personnel with access to funds have received training on the procedures. (3) The state board of accounts (SBOA) must issue a comment in its examination report if internal controls and procedures are not adopted or personnel have not received training. (4) The governing board of the entity must self-report uncorrected violations to the DLGF. (5) The DLGF may not approve the political subdivision’s budget or supplemental appropriations if the political subdivision has failed to adopt internal controls and procedures or train personnel. (6) Additional reporting and follow up requirements are required upon the discovery of the misappropriation of political subdivision funds. While the new law makes other changes to the operations of local units of government, the above will have the most immediate…
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Want to avoid a shareholder dispute?
Make sure your corporate documents are tailored to your situation and not hand-me-downs. In hindsight, most clients wish they had contacted our office earlier. What problems and owner disputes could we have avoided or reduced by an early consultation? If you own a business with a partner, an early consultation can establish the partners’ rights and obligations – while things are still good. No one wants to think about a potential falling out, or even an amicable parting of ways, but planning for the end is part of wise planning. As an individual you purchase insurance, you have a will drafted – shouldn’t you put as much planning into your business? We too often see clients who have adopted “boilerplate” agreements they found on the internet or through a DIY publication, or outdated and stale agreements, with little understanding how the agreement is applied in his or her real-world situation, or more importantly, what alternative options may have been available. We have worked with many owner/operators of closely held corporations, including shareholders in family companies, who are hamstrung by ill-fitting agreements. It’s better to understand and fix the agreements before you need to rely on them. If you and your partners operate a small or mid-size business, we encourage you to think through your rights and obligations: What happens if you want to leave the business – are there any restrictions on how you sell your interest and to whom you may sell? Do the restrictions help you or hurt you, and why? What if your…
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