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State Board of Accounts Township Annual Meeting September 2013

State Board of Accounts Township Annual Meeting September 2013. Contact Us 317-232-2520 State Board of Accounts 302 West Washington Street Room E418 Indianapolis, IN 46204-2765. Tammy L. Baker, CPA, School Supervisor tbaker@sboa.in.gov Ryan Preston, School Supervisor rpreston@sboa.in.gov.

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State Board of Accounts Township Annual Meeting September 2013

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  1. State Board of AccountsTownship Annual MeetingSeptember 2013

  2. Contact Us317-232-2520State Board of Accounts302 West Washington StreetRoom E418Indianapolis, IN 46204-2765

  3. Tammy L. Baker, CPA, School Supervisortbaker@sboa.in.govRyan Preston, School Supervisorrpreston@sboa.in.gov

  4. State Board of Accounts Websitewww.in.gov/sboaTownship ManualRegulatory Reporting ManualTownship BulletinsFiled Audit ReportsMeeting Materials

  5. Report Filings

  6. TA-7 (Township Assistance Annual Statistical Report) • SBOA compiles a statewide statistical report from each TA-7 filed • The statewide statistical report is filed with the legislative services agency before July 1 each year and may be viewed at: • http://www.in.gov/legislative/igareports/agency/sbac.html • SBOA required to forward copy of individual TA-7s and statewide statistical report to DLGF and Division of Family Resources

  7. Annual Financial Report, TA-7 and 100-R • Failure to file report(s) in a timely manner may result in removal from office • Reminder email from Gateway system • Certified letter from SBOA with subpoena to appear in SBOA office • If there is non-compliance with the subpoena, the matter will be referred to the Attorney General in order for him to file an action in circuit court as provided in IC 5-11-1-9(g)

  8. Nepotism and Contracting Policies • The township board shall adopt a nepotism policy that includes, at a minimum, the requirements set forth in IC 36-1-20.2 and adopt a contracting policy that includes, at a minimum, the requirements set forth in IC 36-1-21. Policies may include requirements that are more stringent or detailed.

  9. Nepotism and Contracting Policies • There are no SBOA prescribed forms for the contracting or nepotism policies. However, some associations have created templates for their members. • Townships are not required, and should not, send a copy of the policies to SBOA.  They should be retained locally. • There is no requirement that new policies be adopted annually.

  10. Nepotism and Contracting Policies • If a township has not implemented a nepotism and/or contracting policy, DLGF may not approve: •         (1) the unit's budget; or    (2) any additional appropriations for the unit; • for the ensuing calendar year until the state board of accounts certifies to the department of local government finance that the unit is in compliance.

  11. Nepotism and Contracting Policies • Townships must answer unit questions regarding whether they have implemented a nepotism policy and a contracting policy as defined in IC 36-1-20.2andIC 36-1-21when completing the 100R. • 170 townships indicated they had not implemented a nepotism policy and 274 townships indicated that they had not implemented a contracting policy on the 2012 100R.

  12. Nepotism and Contracting Policies • ting a nepotism or contracting policy on the 100R • If the township board implements a nepotism policy after the trustee has completed the Form 100R, the trustee should send an email to annualreports@sboa.in.gov and ask for the report to be unlocked. • After the report is unlocked, the trustee should go back into the report and indicate that a policy has been adopted. The trustee must submit the report again in order for this change to be effective.

  13. Nepotism and Contracting Certifications • In addition to the polices required, each elected officer of the unit (trustee and township board members) shall annually certify in writing, subject to the penalties for perjury, that the officer has not violated IC 36-1-20.2 and IC 36-1-21.

  14. Nepotism and Contracting Certifications • An officer shall submit the certification to the executive of the unit (trustee) not later than December 31 of each year. • There are no SBOA prescribed forms for these certifications. However, some associations have created templates for their members.

  15. Nepotism (IC 36-1-20.2) • Any individual that was employed by a "unit" on July 1, 2012, is not subject to IC 36-1-20.2 and any individual hired on or after July 2, 2012, is subject IC 36-1-20.2.

  16. Nepotism (IC 36-1-20.2) • If the township trustee's office is located in the township trustee's personal residence, unless the nepotism policy adopted provides otherwise, the township trustee may hire one (1) employee who is a relative. The employee:         (1) may be hired to work only in the township • trustee's office;        (2) may be in the township trustee's direct • line of supervision; and        (3) may not receive total salary, benefits, and • compensation that exceed five thousand • dollars ($5,000) per year.

  17. Government Employees and Volunteer Firefighters Holding Office (IC 3-5-9-4) • An individual who is serving as a volunteer firefighter for a volunteer fire department or a fire department that provides fire protection services to a unit: • (1) under a contract, excluding a mutual aid • agreement; or         (2) as the unit's fire department; • may not assume or hold an elected office (township board member or trustee) of a unit that receives fire protection services from the department in which the volunteer firefighter serves.

  18. Government Employees and Volunteer Firefighters Holding Office (IC 3-5-9-4) • An individual who: •         (1) is an employee of a unit, serving as a full- time, paid firefighter; or        (2) serves as a volunteer firefighter; • in a department that provides fire protection services to more than one (1) unit, excluding fire protection services provided under mutual aid agreements, may not assume or hold an elected office of any unit that receives fire protection services from the department.

  19. Government Employees and Volunteer Firefighters Holding Office (IC 3-5-9-5) • An individual is considered to have resigned as a government employee when the individual assumes an elected office of the unit that employs the individual.

  20. Government Employees and Volunteer Firefighters Holding Office (IC 3-5-9-6) IC 3-5-9 does not prohibit: (1) a government employee from assuming or holding an elected office of a unit other than the unit that employs the government employee; (2) a full-time, paid firefighter or volunteer firefighter from assuming or holding an elected office of a unit other than a unit that receives fire protection services from the department in which the volunteer firefighter serves; or (3) an individual who assumes or holds an elected office from also being appointed to and serving on a board, commission, or committee of the unit.

  21. Government Employees and Volunteer Firefighters Holding Office (IC 3-5-9-7) • A volunteer firefighter who assumes or holds an elected office on January 1, 2013, may continue to hold the elected office and serve as a volunteer firefighter; and • A government employee who assumes or holds an elected office on January 1, 2013, may continue to hold the elected office and be employed as a government employee;until the term of the elected office that the volunteer firefighter or government employee is serving on January 1, 2013, expires.

  22. Government Employees and Volunteer Firefighters Holding Office (IC 3-5-9-7) • After the expiration of the term of the elected office that the volunteer firefighter is serving on January 1, 2013, the volunteer firefighter is subject to IC 3-5-9-4 with respect to serving as a volunteer firefighter and assuming or holding an elected office of the unit that receives fire protection services from the department in which the volunteer firefighter serves.

  23. Government Employees and Volunteer Firefighters Holding Office (IC 3-5-9-7) • After the expiration of the term of the elected office that the government employee is serving on January 1, 2013, the government employee is subject to IC 3-5-9-5 with respect to assuming or holding an elected office and being employed by the unit that employs the government employee.

  24. MiscellaneousIndiana Codes for Townships

  25. Township Board Pay (IC 36-6-8-13)A member of the township board who holds office on December 31 of any year is entitled to his salary on that day. A member of the township board who leaves office before December 31 of any year is entitled to his salary on the day he leaves office. ** A W-2 must be issued for all salary paid to township board members. Elected officials are employees for income tax purposes under the section 3401(c) provision that applies to public officials. They are subject to a degree of control that typically makes them employees under the common law, and are subject to social security and Medicare taxes.

  26. Annual meeting; report of receipts and expenditures of preceding calendar year; failure to file; penalty (IC 36-6-4-12)Within ten days after the township board’s action under IC 36-6-6-9, the trustee shall file a copy of the report and its accompanying vouchers, as adopted by the township board, in the county auditor's office. The township board may, for the benefit of the township, bring a civil action against the trustee if the trustee fails to file the report within ten days after the township board’s action. The township board may recover five dollars ($5) for each day beyond the time limit for filing the report, until the report is filed.

  27. Office Rent & Telephone Expenses (IC 36-6-8-3)The annual appropriations to a township trustee for the expenses of renting an office and telephone and telegraph expenses must, as nearly as is possible, be equal to the actual cost of those items.If the township trustee uses a part of the trustee's residence for an office, the township board shall appropriate a reasonable sum for that office space.

  28. Mileage Reimbursement (IC 36-6-8-3)The township trustee is entitled to a sum for mileage in the performance of official duties equal to the sum per mile paid to state officers and employees. **The township trustee is not entitled a sum for mileage when the township trustee uses a township vehicle in the performance of official duties.** Current rate for state officers and employees is $0.44.Mileage Claim Form Number 101 shall be properly completed, listing dates of authorized travel, details of travel, miles traveled, nature of business, etc., for reimbursements for mileage before payment is made.

  29. Vacations and Other Benefits for Township Employees(IC 5-10-6-1)Employees of townships may be granted a vacation with pay, sick leave, paid holidays, and other similar benefits by resolution of the township board.We have received questions concerning the authority (or need) for elected officials to be included in the township's vacation leave, sick leave, death leave, or other leave policies.Our audit position is that an elected official's compensation goes with the office. This means that the elected official receives his (or her) salary as long as the office to which the official was elected performs the duties and responsibilities of this office. Whether the elected official personally does the work, whether the elected official personally maintains office hours, or whether the elected official shows up at the office are matters to be determined locally and have no bearing on the trustee’s right to be compensated.

  30. Vacations and Other Benefits for Township Employees(IC 5-10-6-1)Keep in mind our audit position relates only to elected officials. Werecommend the township attorney provide specific written guidance that conflicts do not exist with IC 35-44.1-1-3, Ghost Employment. IC 35-44.1-1-3, prohibits payment to other township employees if they did not properly perform township duties assigned and maintain hours as directed.In those few instances where elected officials choose to be included in an employee benefit policy (and were included in the authorizing resolution), the officials must maintain proper attendance records (the same as all other township employees) which clearly disclose days worked, days missed, type of leave taken, etc. We are of the audit position the requirement for keeping proper attendance records would require that these decisions should not be made just prior to the close of the official's term.

  31. Advance Payment of Salaries Prohibited(IC 5-7-3-1)Public officers may not draw or receive their salaries in advance.

  32. Important Due Dates • Filing of Annual Personnel Report (100-R) with SBOA (IC 5-11-13-1) January 31 (during the Month of January) • Meeting of township board to elect officers (IC 36-6-6-7) On the first Tuesday after the first Monday in January • Meeting of township board to organize as board of finance (IC 5-13-7-6)After the first Monday and on or before the last day of January • Meeting of township board to approve Financial Report (IC 36-6-6-9) On or before the third Tuesday after the first Monday in February *** • Filing of Financial Report and vouchers in county auditor’s office (IC 36-6-4-12) Within 10 day after the meeting to approve the Annual Financial Report • Publishing of Financial Report (IC 36-6-4-13)Within 4 weeks after the third Tuesday following the first Monday in January • Filing of Annual Financial Report (AFR) and TA-7 with SBOA (IC 5-11-1-4) March 1** (no later than 60 days after the close of the fiscal year) • Filing list of township employees with county treasurer (IC 6-1.1-22-14) June 1 (On or before June 1 of each year)**** • Posting of statement of indebtedness of township (IC 36-6-4-10)First Monday in August • Filing list of township employees with county treasurer (IC 6-1.1-22-14) December 1 (On or before December 1 of each year)**** • Filing of certification to the trustee that elected officials (board members • and trustee) have not violated nepotism policy (IC 36-1-20.2-16) December 31 • Filing of certification to the trustee that elected officials (board members • and trustee) have not violated contracting policy (IC 36-1-21-6) December 31 • ** February 29 in leap years • *** Prior to 7/1/13 the board was to meet on or before the third Tuesday after the first Monday in January • **** Or more frequently if the county legislative body adopts an ordinance requiring additional certifications • For dates regarding the adoption of the township budget please contact your local DLGF representative.

  33. Financial Assistance to Non-Governmental Entities

  34. Financial Assistance toNon-Governmental EntitiesAmounts disbursed to non-governmental entities must be reported in the Annual Report. Common township disbursements to non-governmental entities include:Volunteer Fire DepartmentsEmergency Medical Services

  35. Financial Assistance toNon-Governmental EntitiesConsider including language in contracts with non-governmental entities that require them to file the Entity Annual Report with the State Board of Accounts.The Entity Annual Report is used to determine the audit requirements of non-governmental entities.

  36. Financial Assistance toNon-Governmental EntitiesAs of May 10, 2011, IC 5-11-1-9 requires an organization-wide audit of an entity when the public funds disbursed by that organization are $200,000 or more and equal to or greater than 50% of their total disbursements for the period.  

  37. Indiana Code Township BoardIC 36-6-6

  38. Township Board & Term of OfficeIC 36-6-6-2The township board shall consist of three members*Term of office is 4 years beginning January 1 after election until a successor is elected*Seven members for a board in a county containing a consolidated city Merged townships have special provisions contained in IC 36-6-6-2.1

  39. Township Board Residency RequirementIC 36-6-6-3A member of the Board must reside within the township.If a member of the Board ceases to be a resident of the township, the office becomes vacant.

  40. Township Board Quorum/AdjournmentIC 36-6-6-4 Two (2) members of the Board constitute a quorum.**4 members for a Board in a county containing a consolidated city A majority of members for merged townshipsIC 36-6-6-5 A meeting of the Board may be adjourned from day to day until its business is completed.

  41. Appearance at meetings by taxpayerIC 36-6-6-6A taxpayer of the township may appear at any meeting of the Board and be heard as to: (1) an estimate of expenditures; (2) a proposed levy of taxes; (3) the approval of the trustee's annual report; or (4) any other matter being considered by the legislative body.

  42. Township Board Meeting; Election of chairman and secretaryIC 36-6-6-7The Board shall meet at the office of the Trustee on the first Tuesday after the first Monday in January of each year. At this meeting the Board shall elect one member as chairman for that year and one member as secretary for that year.

  43. Township Board; Special MeetingIC 36-6-6-7 If a newly elected Board holds a special meeting before the first Tuesday after the first Monday in the January following its election, it shall elect a chairman and a secretary before conducting any other business. The chairman and secretary elected at the special meeting retain those positions until the first Tuesday after the first Monday in January of the year following the special meeting.

  44. Township Board; Recording of proceedingsIC 36-6-6-8The Board shall keep a permanent record of its proceedings in a book furnished by the trustee. The secretary of the Board shall, under the direction of the Board, record the minutes of the proceedings of each meeting in full and shall provide copies of the minutes to each member of the Board before the next meeting is convened. After the minutes are approved by the Board, the secretary of the Board shall place the minutes in the permanent record book. The chairman of the Board shall retain the record in his custody.

  45. Township Board; Meeting for consideration and approval of annual report of trustee; disposition of fundsIC 36-6-6-9The Board shall meet on or before the third Tuesday after the first Monday in February** of each year. At this meeting it shall consider and approve, in whole or in part, the annual report of the trustee presented under IC 36-6-4-12.The Board may send for persons, books, and papers necessary in the examination of the report. A member may administer oaths necessary in the examination of the report.Any sum in the control of the trustee that remains unexpended and is subject to no liability shall be credited in favor of the fund for which it was appropriated. ** Prior to 7/1/13 the board was to meet on or before the third Tuesday after the first Monday in January

  46. Township Board; Meeting for consideration and approval of annual report of trustee; disposition of fundsIC 36-6-6-9 Any fund expended, in whole or in part, for a purpose for which it was not appropriated shall be considered unexpended and in the control of the trustee, who is liable on his bond for such an expenditure.When its examination of the report is completed, the Board shall take action on the report, specifying the parts of the report that are altered or disallowed. The report remains under the control of the Board and in custody of its chairman, who shall keep it open to inspection by taxpayers of the township.

  47. Compensation of officers and employeesIC 36-6-6-10The township board shall fix the: (1) salaries; (2) wages; (3) rates of hourly pay; and (4) remuneration other than statutory allowances;of all officers and employees of the township.The township board may not alter the salaries of elected or appointed officers during the fiscal year for which they are fixed, but it may add or eliminate any other position and change the salary of any other employee, if the necessary funds and appropriations are available.

  48. Compensation of officers and employeesIC 36-6-6-10The township board may reduce the salary of an elected or appointed official. However, the official is entitled to a salary that is not less than the salary fixed for the first year of the term of office that immediately preceded the current term of office. In a year in which there is not an election of members to the township board, the township board may vote to reduce the salaries of the members of the township board body by any amount.**** Prior to 7/1/13 a unanimous vote was required, now only requires a majority vote.

  49. Compensation of officers and employeesIC 36-6-6-10The township board may not reduce the salary of the trustee without the consent of the trustee during the term of office of the trustee.If a trustee dies or resigns from office, the person filling the vacancy of the trustee shall receive at least the same salary the previous trustee received for the remainder of the unexpired term of office of the trustee, unless the person consents to a reduction in salary.If a change in the mileage allowance paid to state officers and employees is established by July 1 of any year, that change shall be included in the compensation fixed for the trustee, to take effect January 1 of the next year. However, the township board may by ordinance provide for the change in the sum per mile to take effect before January 1 of the next year.

  50. Resolution Establishing Salaries of Township Officers And Employees (Township Form No. 17 – Revised 2008)The Township Board is required to set the salaries and wages for each township employee every year. Listings of positions on budget forms are not considered sufficient for documentation of approved salaries and wages. The State Board of Accounts has provided a prescribed form, Township Form No. 17, to document the approved salaries and wages.

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