Presentation on theme: "State Board of Accounts Township Annual Meeting September 2013"— Presentation transcript:
1State Board of Accounts Township Annual Meeting September 2013
2Contact Us State Board of Accounts 302 West Washington Street Room E418 Indianapolis, IN
3Tammy L. Baker, CPA, School Supervisor tbaker@sboa. in Tammy L. Baker, CPA, School Supervisor Ryan Preston, School Supervisor
4State Board of Accounts Website www. in State Board of Accounts Website Township Manual Regulatory Reporting Manual Township Bulletins Filed Audit Reports Meeting Materials
5Report Filings 1004 of 1006 townships have filed 2012 Annual Report Annual Report & TA-71004 of 1006 townships have filed 2012 Annual Report100R1004 of 1006 townships have filed R
6TA-7 (Township Assistance Annual Statistical Report) SBOA compiles a statewide statistical report from each TA-7 filedThe statewide statistical report is filed with the legislative services agency before July 1 each year and may be viewed at:SBOA required to forward copy of individual TA-7s and statewide statistical report to DLGF and Division of Family Resources
7Annual Financial Report, TA-7 and 100-R Failure to file report(s) in a timely manner may result in removal from officeReminder from Gateway systemCertified letter from SBOA with subpoena to appear in SBOA officeIf 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 (g)Annual Financial Report, TA-7 and 100-R
8Nepotism and Contracting Policies The township board shall adopt a nepotism policy that includes, at a minimum, the requirements set forth in IC and adopt a contracting policy that includes, at a minimum, the requirements set forth in IC Policies may include requirements that are more stringent or detailed.Nepotism and Contracting Policies
9Nepotism 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.Nepotism and Contracting Policies
10Nepotism 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.
11Nepotism and Contracting Policies Townships must answer unit questions regarding whether they have implemented a nepotism policy and a contracting policy as defined in IC and IC when 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 R.
12Nepotism and Contracting Policies ting a nepotism or contracting policy on the 100RIf the township board implements a nepotism policy after the trustee has completed the Form 100R, the trustee should send an to 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.
13Nepotism 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 and IC
14Nepotism 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.
15Nepotism (IC )Any individual that was employed by a "unit" on July 1, 2012, is not subject to IC and any individual hired on or after July 2, 2012, is subject IC
16Nepotism (IC )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 townshiptrustee's office; (2) may be in the township trustee's directline of supervision; and (3) may not receive total salary, benefits, andcompensation that exceed five thousanddollars ($5,000) per year.
17Government 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 aidagreement; 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.
18Government 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.
19Government 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.
20Government Employees and Volunteer Firefighters Holding Office (IC 3-5-9-6) IC 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.
21Government 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.
22Government 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 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.
23Government 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 with respect to assuming or holding an elected office and being employed by the unit that employs the government employee.
25Township Board Pay (IC ) 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.
26Annual meeting; report of receipts and expenditures of preceding calendar year; failure to file; penalty (IC ) Within ten days after the township board’s action under IC , 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.
27Office Rent & Telephone Expenses (IC ) 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.
28Mileage Reimbursement (IC ) 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 $ 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.
29Vacations and Other Benefits for Township Employees (IC ) 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.
30Vacations and Other Benefits for Township Employees (IC ) Keep in mind our audit position relates only to elected officials. We recommend the township attorney provide specific written guidance that conflicts do not exist with IC , Ghost Employment. IC , 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.
31Advance Payment of Salaries Prohibited (IC ) Public officers may not draw or receive their salaries in advance.
32Important Due DatesFiling of Annual Personnel Report (100-R) with SBOA (IC ) January 31 (during the Month of January)Meeting of township board to elect officers (IC ) On the first Tuesday after the first Monday in JanuaryMeeting of township board to organize as board of finance (IC ) After the first Monday and on or before the last day of JanuaryMeeting of township board to approve Financial Report (IC ) On or before the third Tuesday after the first Monday in February ***Filing of Financial Report and vouchers in county auditor’s office (IC ) Within 10 day after the meeting to approve the Annual Financial ReportPublishing of Financial Report (IC ) Within 4 weeks after the third Tuesday following the first Monday in JanuaryFiling of Annual Financial Report (AFR) and TA-7 with SBOA (IC ) March 1** (no later than 60 days after the close of the fiscal year)Filing list of township employees with county treasurer (IC ) June 1 (On or before June 1 of each year)****Posting of statement of indebtedness of township (IC ) First Monday in AugustFiling list of township employees with county treasurer (IC ) December 1 (On or before December 1 of each year)****Filing of certification to the trustee that elected officials (board membersand trustee) have not violated nepotism policy (IC ) December 31Filing of certification to the trustee that elected officials (board membersand trustee) have not violated contracting policy (IC ) 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 certificationsFor dates regarding the adoption of the township budget please contact your local DLGF representative.
33Financial Assistance to Non-Governmental Entities
34Financial Assistance to Non-Governmental Entities Amounts disbursed to non-governmental entities must be reported in the Annual Report. Common township disbursements to non-governmental entities include: Volunteer Fire Departments Emergency Medical Services
35Financial Assistance to Non-Governmental Entities Consider 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.
36Financial Assistance to Non-Governmental Entities As of May 10, 2011, IC 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.
38Township Board & Term of Office IC The 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
39Township Board Residency Requirement IC A 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.
40Township Board Quorum/Adjournment IC 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 townships IC A meeting of the Board may be adjourned from day to day until its business is completed.
41Appearance at meetings by taxpayer IC A 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.
42Township Board Meeting; Election of chairman and secretary IC The 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.
43Township Board; Special Meeting IC 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.
44Township Board; Recording of proceedings IC The 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.
45Township Board; Meeting for consideration and approval of annual report of trustee; disposition of funds IC The 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 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
46Township Board; Meeting for consideration and approval of annual report of trustee; disposition of funds IC 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.
47Compensation of officers and employees IC The 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.
48Compensation of officers and employees IC The 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.
49Compensation of officers and employees IC The 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.
50Resolution 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.
51Resolution Establishing Salaries of Township Officers And Employees (Township Form No. 17 – Revised 2008) Please remember the Township Board should record the salaries so fixed in the township board minutes. We recommend the board set the salaries of township officials and employees, in conjunction with the preparation and completion of the township budget.
52Meeting; adoption of annual budget IC The township board shall meet annually to adopt the township's annual budget. The township board body shall consider the estimates of expenditures made by the trustee under IC , and may approve or reject all or part of any estimate or any item within an estimate. The township board may require the trustee to further itemize an estimate not sufficiently itemized.
53Meeting; adoption of annual budget IC The township board may not appropriate for any purpose an amount more than the trustee's estimate of the amount required for that purpose. The township board shall include in the budget: (1) provisions for the payment of existing debt of the township as it becomes due; and (2) the salaries fixed under section 10 of this chapter. In making levies for the township general fund, the township board may include an amount not more than the amount necessary to compensate its members for their services during the year for which the levies are made.
54Meeting; adoption of annual budget IC After the township board has taken action on the trustee's estimates, it shall levy taxes for the township funds on property in the township and fix rates of taxation sufficient to provide that revenue during the next year. On the assessment date, the rates of taxation adopted become a levy and a lien on all taxable property in the township, including property in municipalities in the township. The levy constitutes an appropriation for the specific items in the trustee's estimates.
55Membership of township in county, state, or national associations; appropriations; expenses IC The township board may appropriate money for membership of the township in county, state, or national associations that: (1) are of a civic, educational, or governmental nature; and (2) have as a purpose the improvement of township governmental operations. The township representatives may participate in the activities of these associations, and the township board may appropriate money to defray the expenses of township representatives in connection with these activities.
56Membership of township in county, state, or national associations; appropriations; expenses IC Each representative of the township attending any meeting, conference, seminar, or convention approved by the township trustee shall be allowed reimbursement for all necessary and legitimate expenses incurred while representing the township. Expenses shall be paid to each representative in accordance with the township's reimbursement policy, which may include an established per diem rate, as recommended by the trustee and adopted by the township board.
57Appropriation and transfer of money to county; interlocal agreements IC The township board may appropriate and transfer money to the county treasurer for use throughout the county under agreements made by the township and the county under IC (interlocal cooperation).
58Special meeting by township board; notice IC 36-6-6-13 Special meeting by township board; notice IC A special meeting may be held by the township board if the trustee, the chairman of the township board, or a majority of the members of the township board issue a written notice of the meeting to each member of the township board. The notice must state the time, place, and purpose of the meeting. The township board may consider any matter at a special meeting. However, the only matters that may be acted on at the special meeting are the matters set forth in the notice.
59Special meeting; determination of need for fire and emergency services IC At any special meeting, if two or more members give their consent, the township board may determine whether there is a need for fire and emergency services or other emergency requiring the expenditure of money not included in the township's budget estimates and levy. If the township board finds that a need for fire and emergency services or other emergency exists, it may issue a special order, entered and signed on the record, authorizing the trustee to borrow a specified amount of money sufficient to meet the emergency.** ** Effective July 1, 2013, the township board may not authorize the trustee to borrow money in more than three calendar years during any five year period.
60Special meeting; determination of need for fire and emergency services IC Notwithstanding IC (a), the township board may authorize the trustee to borrow a specified sum from a township fund other than the township firefighting fund if the township board finds that the emergency requiring the expenditure of money is related to paying the operating expenses of a township fire department or a volunteer fire department. At its next annual session, the township board shall cover the debt created by making a levy to the credit of the fund for which the amount was borrowed.
61Special meeting; determination of need for fire and emergency services IC In determining whether a fire and emergency services need exists requiring the expenditure of money not included in the township's budget estimates and levy, the township board and any reviewing authority considering the approval of the additional borrowing shall consider several factors listed in IC (d). In the event the township received additional funds under this chapter in the immediately preceding budget year for an approved expenditure, any reviewing authority shall take into consideration the use of the funds in the immediately preceding budget year and the continued need for funding the services and operations to be funded with the proceeds of the loan.
62Objection by taxpayers; department of local government finance hearing and action; appeal IC If the township board issues a special order authorizing the trustee to borrow money, not less than ten taxpayers in the township who disagree with the special order may file a petition in the office of the county auditor not more than thirty (30) days after notice of the special order is given. The petition must state the taxpayers' objections and the reasons why the taxpayers believe the special order to be unnecessary or unwise.
63Objection by taxpayers; department of local government finance hearing and action; appeal IC The county auditor shall immediately certify a copy of the petition, together with other data necessary to present the questions involved, to the department of local government finance. Upon receipt of the certified petition and other data, the department of local government finance shall fix a time and place for the hearing of the matter. The hearing shall be held not less than five (5) and not more than thirty (30) days after the receipt of the certified documents.
64Objection by taxpayers; department of local government finance hearing and action; appeal IC The hearing shall be held in the county where the petition arose. Notice of the hearing shall be given by the department of local government finance to the township and to the first ten (10) taxpayer petitioners listed on the petition by letter. The letter shall be sent to the first ten (10) taxpayer petitioners at the taxpayer's usual place of residence at least five (5) days before the date of the hearing.
65Objection by taxpayers; department of local government finance hearing and action; appeal IC A taxpayer who signed a petition or a township against which a petition is filed may petition for judicial review of the final determination of the department of local government finance. The petition must be filed in the tax court not more than forty-five (45) days after the date of the department's final determination.
66Temporary loans to meet current expenses; resolution; time warrants IC If the township board finds that an emergency requires the borrowing of money to meet the township's current expenses, it may take out temporary loans in an amount not more than eighty percent (80%) of the total anticipated revenue for the remainder of the year in which the loans are taken out.
67Temporary loans to meet current expenses; resolution; time warrants IC The township board must authorize the temporary loans by a resolution: (1) stating the nature of the consideration for the loans; (2) stating the time the loans are payable; (3) stating the place the loans are payable; (4) stating a rate of interest; (5) stating the anticipated revenues on which the loans are based and out of which they are payable; and (6) appropriating a sufficient amount of the anticipated revenues on which the loans are based and out of which they are payable for the payment of the loans.
68Temporary loans to meet current expenses; resolution; time warrants IC The loans must be evidenced by time warrants of the township stating: (1) the nature of the consideration; (2) the time payable; (3) the place payable; and (4) the anticipated revenues on which they are based and out of which they are payable.